Category: Taxation

MIL-OSI: Hampton Financial Corporation Announces 3rd Quarter Results
Source: GlobeNewswire (MIL-OSI)

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

TORONTO, July 30, 2025 (GLOBE NEWSWIRE) — Hampton Financial Corporation (“Hampton” or the “Company”, TSXV: HFC) today announced its financial results for the 3^rd quarter ended May 31^st, 2025.

Third Quarter ended May 31^st, 2025.

IFRS results highlights:
- Q3 Revenue of $1,738,000; decrease of 39% year-over-year
- Q3 Net Loss of $(1,201,000) or $(0.02) per share;
Fiscal results (IFRS results adjusted for non-cash Items) highlights:
- Q3 Adjusted Net Loss of $(945,000) or $(0.02) per share;
- Q3 EBITDA of $(686,000) vs $305,000 in the comparative quarter last year
Summary of Corporate Developments:

While our 3^rd quarter results reflect continued weakness, results for the 9 months ended May 31^st show signs of improvement which is being felt across across the Capital Markets industry. Corporate finance is improving slightly over the first half of our fiscal year but is still well below 2023/24 levels. While 2025 is showing some signs of improvement, the year ahead for our core business remains somewhat unclear. That said we intend to move ahead with a number of initiatives to further expand our business portfolio, while growing our existing Wealth Management and Capital Markets businesses.

Hampton’s commercial lending business, via its wholly owned subsidiary Oxygen Working Capital (“OWC”), has begun to show growth and make progress across a number of fronts, while onboarding new clients and diversifying it’s lending base. With further opportunities to lend across its existing portfolio currently being evaluated, the balance of the year is set to show similar signs of progress as the loan book continues to grow quarter over quarter.

“The third quarter results continue to demonstrate the industry-wide challenges faced during the fall of 2024, but we are beginning to see some selective improvements. Capital Markets activities continue to improve slowly as interest rates decline. We remain optimistic for the balance of the fiscal year,” said Hampton Executive Chairman & CEO Peter Deeb.

Copies of Hampton’s unaudited interim financial statements and its Management’s Discussion & Analysis for the nine months ended May 31^st, 2025, can be accessed on SEDAR+ at www.sedar.com.

About Hampton Financial Corporation

Hampton is a unique private equity firm that seeks to build shareholder value through long-term strategic investments.

Through its wholly-owned subsidiary, Hampton Securities Limited (“HSL”), Hampton is actively engaged in family office, wealth management, institutional services and capital markets activities. HSL is a full-service investment dealer, regulated by CIRO and registered in Alberta, British Columbia, Manitoba, Saskatchewan, Nova Scotia, Northwest Territories, Ontario, and Quebec. In addition, the Company, through HSL, provides investment banking services, which include assisting companies with raising capital, advising on mergers and acquisitions, and aiding issuers in obtaining a listing on recognized securities exchanges in Canada and abroad and HSL’s Corporate Finance Group provides early stage, growing companies the capital, they need to create value for investors. HSL continues to develop its Wealth Management, Advisory Team and Principal-Agent programs which offers to the industry’s most experienced wealth managers a unique and flexible operating platform that provides additional freedom, financial support, and tax effectiveness as they build and manage their professional practice.

Through its wholly-owned subsidiary, Oxygen Working Capital (“OWC”) the company offers factoring and other commercial financing services to clients across Canada.

The Company is exploring opportunities to diversify its sources of revenue by way of strategic investments in both complimentary business and non-core sectors that can leverage the expertise of its Board and the diverse experience of its management team.

For more information, please contact:

Olga Juravlev
Chief Financial Officer
Hampton Financial Corporation
(416) 862-8701

Or

Peter M. Deeb
Executive Chairman & CEO
Hampton Financial Corporation
(416) 862-8651

The TSXV has in no way approved nor disapproved the contents of this press release. Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.

No securities regulatory authority has either approved or disapproved of the contents of this press release. This press release does not constitute or form a part of any offer or solicitation to buy or sell any securities in the United States or any other jurisdiction outside of Canada. The securities being offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or the securities laws of any state of the United States and may not be offered or sold within the United States or to a U.S. person absent registration or pursuant to an available exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. There will be no public offering of securities in the United States.

Forward-Looking Statements

This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable Canadian securities laws, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “should”, “hopeful”, “recovery”, “anticipate”, “achieve”, “could”, “believe”, “plan”, “intend”, “objective”, “continuous”, “ongoing”, “estimate”, “outlook”, “expect”, “may”, “will”, “project” or similar words, including negatives thereof, suggesting future outcomes.

Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors beyond the Company’s ability to predict or control which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking statements herein. Forward-looking statements are not a guarantee of future performance. Although the Company believes that any forward-looking statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such statements, there can be no assurance that any such forward-looking statements will prove to be accurate. Actual results may vary, and vary materially, from those expressed or implied by the forward-looking statements herein. Accordingly, readers are advised to rely on their own evaluation of the risks and uncertainties inherent in forward-looking statements herein and should not place undue reliance upon such forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Any forward-looking statements herein are made only as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.

The MIL Network –
July 31, 2025
MIL-OSI Submissions: Australia – Average small business tax refund tops $5k: Tax tips and traps for business owners filing their tax return – CBA
Source: Commonwealth Bank of Australia (CBA)

With CommBank data showing most small business tax refunds are processed in the first quarter of a financial year, here are some tax tips for business owners on staying financially fit and scam aware.

Key facts:

New CommBank data shows on average, small business owners received a tax return of around $5,000 for financial year 2024.

The number of refunds processed between July and September in 2024 are 75 per cent higher than the average number processed in the prior three quarters.

Mining contractors, electricians, plumbers, manufacturers, small agribusinesses, and wholesale traders can expect to get the highest tax returns this year.

According to the data, based on funds deposited into small business customer accounts by the Australian Tax Office (ATO), states with the highest average tax refunds are ACT and Queensland ($5,700), followed by Victoria ($5,300), NSW ($4,900) and WA ($4,800).

Interestingly, electricians and plumbing businesses top the list for average tax returns in NSW and TAS, mining contractors unsurprisingly for WA, and education and communication services for VIC, while small agriculture businesses top the average tax return in Queensland.

Mixed emotions as tax time rolls around

Drew Campbell, co-founder of boutique travel company Reveling – Nestled on the Gold Coast, Reveling is redefining luxury travel with a focus on immersive, small-group and private experiences across Australia and Africa. Co-founded by a team of passionate adventurers, the company is powered by a growing collective of guides, hosts, artisans, and creatives who share a love for meaningful connection through travel.

“There’s nothing more rewarding than seeing people connect deeply with nature and community,” said Drew Campbell, co-founder of Reveling.

Since its inception, Reveling has carved out a niche in the high-end travel space, offering curated experiences that blend authenticity with elegance. But behind the scenes of dreamy destinations and bespoke itineraries lies the reality of running a small business – especially during tax time.

“Honestly, it’s a bit of both stress and excitement,” Mr Campbell admits.

“It’s a good checkpoint to assess how we’re tracking and tidy up any loose
MIL OSI – Submitted News –
July 31, 2025
MIL-OSI USA: Capito: The OBBB Delivers Tax Relief for West Virginians
US Senate News:
Source: United States Senator for West Virginia Shelley Moore Capito

WASHINGTON, D.C. – The One Big Beautiful Bill prevents what could have been the largest tax increase in history for working- and middle-class Americans. By permanently extending and expanding on the successful Tax Cuts and Jobs Act (TCJA), passed during President Trump’s first term, Senate Republicans are delivering on their promise to foster an environment of economic growth and increase affordability for American families.

“The One Big Beautiful Bill delivers the largest tax cut in history to hardworking people in West Virginia and across the country. That means that West Virginia families not only get to keep more of their hard-earned paychecks, but they will see their take-home pay increase by thousands of dollars. These tax cuts will also help small businesses grow and hire more people, leading to greater economic growth and more opportunity,” Senator Capito said.

West Virginia Wins:
- Around 400 thousand seniors in West Virginia could benefit from the no taxes on social security.
- 5% of the labor force is employed in occupations that will benefit from the no taxes on tips.
- Establishes a $6,000 bonus deduction for seniors.
- Establishes a permanent small business deduction and increases Section 179, Small Business Expensing Cap from $1.25 million to $2.5 million.
- Extends the Hydrogen Tax Credit (945V) until January 1, 2028, which will save Hydrogen Hubs across the country, including West Virginia’s ARCH2 project.
- Permanently restores 163j interest deductibility beginning after December 31, 2024, which will provide West Virginia’s small business owners the tools they need to compete, grow, and hire.
What Others Are Saying:

“The One Big Beautiful Bill Act is a landmark victory for West Virginia’s small businesses. By making the Small Business Tax Deduction permanent, Congress delivered the certainty that Main Street needs, allowing small business owners to continue to create jobs, grow their business, and invest in their communities. With the One Big Beautiful Bill Act, Senator Capito along with both Chambers of Congress, have strengthened the foundation of our economy and provided a boost not just for small businesses, but a boost for the entire country,” Gil White, NFIB West Virginia State Director, said.

“Senator Capito has always been a champion and leader for West Virginia’s hospitality and tourism industry, which is an economic driver that employs thousands of West Virginia workers and welcomes millions of visitors to our great state annually. We are thankful for Senator Capito’s support of key provisions in the One Big, Beautiful Bill that will positively impact our restaurant, lodging, and tourism industry members. Important policies included in the bill – such as ‘no tax or tips’ and ‘no taxes on overtime,” full expensing of capital equipment purchases, qualified business income deductions, and permanent family and medical leave credits – provide much-needed benefits to hospitality and tourism employees and regulatory and tax certainty for small business owners that will allow tourism to continue as an economic powerhouse for West Virginia,” Richie Heath, Executive Director of the West Virginia Hospitality and Travel Association, said.
MIL OSI USA News –
July 31, 2025
MIL-OSI USA: 07.30.2025 Sens. Cruz, Cortez Masto Lead Bipartisan FULL HOUSE Act

US Senate News:

Source: United States Senator for Texas Ted Cruz

WASHINGTON, D.C. – U.S. Sens. Ted Cruz (R-Texas), Catherine Cortez Masto (D-Nev.), Bill Hagerty (R-Tenn.), and Jacky Rosen (D-Nev.) introduced the Facilitating Useful Loss Limitations to Help Our Unique Service Economy (FULL HOUSE) Act. This bipartisan bill restores professional gamblers ability to deduct 100% of their gambling losses, ensuring they are not unfairly taxed on phantom income.
Sen. Cruz said, “The FULL HOUSE Act would restore the previous law and ensure professional gamblers are taxed on what they actually earn, not phantom income. This is a matter of basic fairness and integrity. I’m grateful for the bipartisan support of my colleagues, Senators Catherine Cortez Masto, Jacky Rosen, and Bill Hagerty, and I urge my fellow Senators to support this fix.”
Sen. Cortez Masto said, “Taxing people on money they don’t have will stifle the tourism industry in states like Nevada, push poker tournaments offshore, and drive betting into underground, unregulated markets. There is bipartisan support to fix this mistake, and it is time for my colleagues in both parties and chambers of Congress to get it done.”
Sen. Rosen said, “Our bipartisan bill fixes a harmful provision included in the ‘One Big Beautiful Bill’ that taxes casino players who lose money. It’s not just bad math, it’s bad policy. If we don’t fix this misguided provision, people would be discouraged from visiting casinos and Nevada’s tourism economy would take a hit. I’m glad to see bipartisan agreement to fix this mistake.”
Read the full text of the bill here.
BACKGROUND
The “One Big Beautiful Bill” (OBBB) reduced the amount of gambling losses an itemizing taxpayer could deduct—from 100% of gambling winnings to just 90%. This legislation would restore fairness for professional gamblers.

MIL OSI USA News –

July 31, 2025
MIL-OSI USA: Grassley Helps Reinstate FBI Whistleblower, Delivers Keynote Address During National Whistleblower Appreciation Day

US Senate News:

Source: United States Senator for Iowa Chuck Grassley

WASHINGTON – At the National Whistleblower Day celebration on Capitol Hill Wednesday, Sen. Chuck Grassley (R-Iowa) announced he has succeeded in reinstating Federal Bureau of Investigation (FBI) whistleblower Michael DeBey’s clearance and employment with the agency. This is the sixth whistleblower Grassley has successfully restored so far this year.

During his remarks, Grassley also spoke about his work to support patriotic whistleblowers and the important role they play in rooting out waste, fraud and abuse. Grassley is the co-founder and co-chair of the Whistleblower Protection Caucus.

Remarks by Senator Chuck Grassley of Iowa
“Whistleblower Appreciation Day”
Wednesday, July 30, 2025

It’s an honor to be among patriots here today.

Today, nobody will be treated like a skunk at a picnic.

Whistleblowers too often get the short end of the stick for simply telling the truth.

Instead, whistleblowers ought to be recognized for what they are: patriots and the government’s most powerful tool to root out waste, fraud, and abuse.

So, I’m proud to have introduced the National Whistleblower Appreciation Day resolution for the 12th year in a row.

Throughout my career, I’ve fought for whistleblowers.

I’m committed to ensuring that federal agencies treat whistleblowers fairly and are held accountable for retaliating against them.

That goes for both Republican and Democratic administrations.

When I first was elected to the Senate in 1981, I worked with brave whistleblowers like Ernie Fitzgerald.

Ernie was fired in 1968 by President Nixon for blowing the whistle on waste and fraud in Defense Department contracts.

I worked to pass laws to eliminate fraud that whistleblowers like Ernie told me about.

Now, because of this work, I passed the False Claims Amendment Act in 1986.

It’s helped recover more than $78 billion in fraud so far, and prevented countless billions more.

My “anti-gag” provision also became law. It’s an important sword and shield to protect whistleblowers.

Far too often, federal agencies tried to silence or intimidate whistleblowers through nondisclosure agreements.

My anti-gag provision is designed to put a stop to that.

I also championed laws and legislation to expand whistleblower protections for the Federal Bureau of Investigation (FBI).

This Congress, I introduced much needed legislation to strengthen whistleblower protections for FBI employees.

But just because we’ve introduced legislation and passed good laws doesn’t mean we can stop paying attention.

I’ve worked hard to ensure individuals who retaliate against whistleblowers are held accountable. I’ve also pushed federal agencies to do right by whistleblowers.

IRS whistleblowers Gary Shapley and Joseph Ziegler made legally protected disclosures about government misconduct.

They were retaliated against and sidelined from doing their job.

This year, at my urging, they were taken out of the shadows of retaliation and were promoted by the Treasury Department.

I also pushed the Department of Homeland Security Secretary to end the seven-year nightmare for Customs and Border Protection whistleblowers Mark Jones, Mike Taylor and Fred Wynn.

These brave whistleblowers faced years of retaliation for blowing the whistle on the government’s failure to collect DNA at the border.

At my urging, this year the Department of Homeland Security promoted them and restored their law enforcement credentials.

So, they got their guns and badges back to do their job.

I’ve also worked to restore the security clearances of FBI employees who had them suspended or revoked.

These FBI employees were retaliated against and, as we all know, the FBI’s illegal power move is to take away security clearances.

And it’s not just government whistleblowers who are important.

I’ve introduced legislation to protect private sector whistleblowers from retaliation for exposing waste, fraud, abuse and misconduct.

I’m the lead cosponsor of the bipartisan Expanding Whistleblower Protections for Contractors Act.

That bill increases whistleblower protections for employees of federal contractors and subcontractors.

I also introduced the bipartisan Securities and Exchange Commission Whistleblower Reform Act of 2025.

The bill protects corporate whistleblowers who report violations to the Securities and Exchange Commission.

Additionally, I’m proud to have introduced the bipartisan Artificial Intelligence Whistleblower Protection Act.

That bill is designed to increase transparency and provide whistleblower protections to employees who work in the Artificial Intelligence field.

But like I said, there’s still a lot of work to be done.

The task of supporting whistleblowers doesn’t start and stop with this day or depend on who’s in the White House.

If you make legally protected disclosures, you’re a whistleblower and ought to be protected from retaliation.

This administration has said Mr. Reuvini isn’t a whistleblower.

I’ve publicly disagreed.

The other two people who came forward about Mr. Bove are also whistleblowers.

Here’s my message to all whistleblowers in this room: just because I may disagree with the conclusions in a whistleblower disclosure, it doesn’t mean that I don’t support a whistleblower’s right to come forward.

And regardless of the content of the disclosure, every whistleblower must be protected from retaliation.

That’s why last week, I wrote President Trump about the importance of protecting whistleblowers from retaliation.

As this administration reduces the federal workforce, it must ensure terminations aren’t done because a protected disclosure was made. This administration, just like all the rest, has an obligation to comply with whistleblower laws.

In my letter, I also reminded President Trump of my outstanding request that he hold a Rose Garden Ceremony for whistleblowers.

I’ve asked every president since Ronald Reagan to have a Rose Garden ceremony honoring whistleblowers.

I’m not giving up on that request just like I’m not giving up on any of you.

Whistleblowers are some of the bravest people out there. It takes guts to stick your neck out and report misconduct.

All of you here have put your careers, livelihoods and reputations on the line in service to our great country.

God Bless you for your service and sacrifices.

I’ll continue to fight for you.

-30-

MIL OSI USA News –

July 31, 2025
MIL-OSI USA: Grassley Helps Reinstate FBI Whistleblower, Delivers Keynote Address During National Whistleblower Appreciation Day

US Senate News:

Source: United States Senator for Iowa Chuck Grassley

WASHINGTON – At the National Whistleblower Day celebration on Capitol Hill Wednesday, Sen. Chuck Grassley (R-Iowa) announced he has succeeded in reinstating Federal Bureau of Investigation (FBI) whistleblower Michael DeBey’s clearance and employment with the agency. This is the sixth whistleblower Grassley has successfully restored so far this year.

During his remarks, Grassley also spoke about his work to support patriotic whistleblowers and the important role they play in rooting out waste, fraud and abuse. Grassley is the co-founder and co-chair of the Whistleblower Protection Caucus.

Remarks by Senator Chuck Grassley of Iowa
“Whistleblower Appreciation Day”
Wednesday, July 30, 2025

It’s an honor to be among patriots here today.

Today, nobody will be treated like a skunk at a picnic.

Whistleblowers too often get the short end of the stick for simply telling the truth.

Instead, whistleblowers ought to be recognized for what they are: patriots and the government’s most powerful tool to root out waste, fraud, and abuse.

So, I’m proud to have introduced the National Whistleblower Appreciation Day resolution for the 12th year in a row.

Throughout my career, I’ve fought for whistleblowers.

I’m committed to ensuring that federal agencies treat whistleblowers fairly and are held accountable for retaliating against them.

That goes for both Republican and Democratic administrations.

When I first was elected to the Senate in 1981, I worked with brave whistleblowers like Ernie Fitzgerald.

Ernie was fired in 1968 by President Nixon for blowing the whistle on waste and fraud in Defense Department contracts.

I worked to pass laws to eliminate fraud that whistleblowers like Ernie told me about.

Now, because of this work, I passed the False Claims Amendment Act in 1986.

It’s helped recover more than $78 billion in fraud so far, and prevented countless billions more.

My “anti-gag” provision also became law. It’s an important sword and shield to protect whistleblowers.

Far too often, federal agencies tried to silence or intimidate whistleblowers through nondisclosure agreements.

My anti-gag provision is designed to put a stop to that.

I also championed laws and legislation to expand whistleblower protections for the Federal Bureau of Investigation (FBI).

This Congress, I introduced much needed legislation to strengthen whistleblower protections for FBI employees.

But just because we’ve introduced legislation and passed good laws doesn’t mean we can stop paying attention.

I’ve worked hard to ensure individuals who retaliate against whistleblowers are held accountable. I’ve also pushed federal agencies to do right by whistleblowers.

IRS whistleblowers Gary Shapley and Joseph Ziegler made legally protected disclosures about government misconduct.

They were retaliated against and sidelined from doing their job.

This year, at my urging, they were taken out of the shadows of retaliation and were promoted by the Treasury Department.

I also pushed the Department of Homeland Security Secretary to end the seven-year nightmare for Customs and Border Protection whistleblowers Mark Jones, Mike Taylor and Fred Wynn.

These brave whistleblowers faced years of retaliation for blowing the whistle on the government’s failure to collect DNA at the border.

At my urging, this year the Department of Homeland Security promoted them and restored their law enforcement credentials.

So, they got their guns and badges back to do their job.

I’ve also worked to restore the security clearances of FBI employees who had them suspended or revoked.

These FBI employees were retaliated against and, as we all know, the FBI’s illegal power move is to take away security clearances.

And it’s not just government whistleblowers who are important.

I’ve introduced legislation to protect private sector whistleblowers from retaliation for exposing waste, fraud, abuse and misconduct.

I’m the lead cosponsor of the bipartisan Expanding Whistleblower Protections for Contractors Act.

That bill increases whistleblower protections for employees of federal contractors and subcontractors.

I also introduced the bipartisan Securities and Exchange Commission Whistleblower Reform Act of 2025.

The bill protects corporate whistleblowers who report violations to the Securities and Exchange Commission.

Additionally, I’m proud to have introduced the bipartisan Artificial Intelligence Whistleblower Protection Act.

That bill is designed to increase transparency and provide whistleblower protections to employees who work in the Artificial Intelligence field.

But like I said, there’s still a lot of work to be done.

The task of supporting whistleblowers doesn’t start and stop with this day or depend on who’s in the White House.

If you make legally protected disclosures, you’re a whistleblower and ought to be protected from retaliation.

This administration has said Mr. Reuvini isn’t a whistleblower.

I’ve publicly disagreed.

The other two people who came forward about Mr. Bove are also whistleblowers.

Here’s my message to all whistleblowers in this room: just because I may disagree with the conclusions in a whistleblower disclosure, it doesn’t mean that I don’t support a whistleblower’s right to come forward.

And regardless of the content of the disclosure, every whistleblower must be protected from retaliation.

That’s why last week, I wrote President Trump about the importance of protecting whistleblowers from retaliation.

As this administration reduces the federal workforce, it must ensure terminations aren’t done because a protected disclosure was made. This administration, just like all the rest, has an obligation to comply with whistleblower laws.

In my letter, I also reminded President Trump of my outstanding request that he hold a Rose Garden Ceremony for whistleblowers.

I’ve asked every president since Ronald Reagan to have a Rose Garden ceremony honoring whistleblowers.

I’m not giving up on that request just like I’m not giving up on any of you.

Whistleblowers are some of the bravest people out there. It takes guts to stick your neck out and report misconduct.

All of you here have put your careers, livelihoods and reputations on the line in service to our great country.

God Bless you for your service and sacrifices.

I’ll continue to fight for you.

-30-

MIL OSI USA News –

July 31, 2025
MIL-OSI Banking: Samsung Electronics Announces Second Quarter 2025 Results

Source: Samsung

Samsung Electronics today reported financial results for the second quarter ended June 30, 2025.

The Company posted KRW 74.6 trillion in consolidated revenue, a decrease of 5.8% compared to the previous quarter. Operating profit decreased to KRW 4.7 trillion.

The Device Solutions (DS) Division reported an increase in revenue on the back of expanded sales of high density, high-performance memory products, but inventory value adjustments in memory and one-off costs related to the impacts of export restrictions related to China in non-memory had an adverse effect on profit. In the Device eXperience (DX) Division, operating profit declined quarter-on-quarter due to a sequential decline in sales volume following the launch of new smartphone models in the first quarter.

Looking ahead to H2, the DS Division plans to proactively meet the growing demand for high-value-added and AI-driven products and continue to strengthen competitiveness in advanced semiconductors. The DX Division will seek to minimize the impact of uncertainties stemming from tariff policies that are likely to persist.

Semiconductors Expected To Proactively Meet Continued AI Demand
The DS Division posted KRW 27.9 trillion in consolidated revenue and KRW 0.4 trillion in operating profit for the second quarter.

In Q2 2025, the Memory Business proactively addressed robust server demand by expanding HBM3E sales and by expanding the proportion of high-density DDR5 products. Also, with the resumption of datacenter projects that were previously delayed, sales of server SSDs increased, helping NAND inventory to decrease significantly. However, earnings were impacted by one-off costs such as inventory value adjustments.

In H2 2025, AI demand is expected to remain robust due to continued investments by major cloud service providers, and therefore server demand for both DRAM and NAND is expected to stay strong.

To align with solid AI-server demand for DRAM, the Memory Business will proactively address the need for high-density products and diversify product offerings through HBM, server LPDDR5x, high-density DDR5, 24Gb GDDR7 and other products. For NAND, the Memory Business plans to increase sales of high-density and high-performance SSDs while accelerating the transition to 8th Generation V-NAND across all applications.

The System LSI Business generated solid revenue from shipments of flagship systems-on-a-chip (SoCs) using the Gate-All-Around (GAA) process, but earnings improvement was limited due to higher costs of developing advanced products.

In H2 2025, the System LSI Business will focus on improving Exynos competitiveness to ensure its adoption in 2026 flagship mobile lineups of a major customer and expanding the sales of ultra-high-resolution and nano-prism sensors.

Despite significant growth in revenue from the first quarter, earnings for the Foundry Business remained weak due to the impact of inventory value adjustments that stemmed from US export restrictions on advanced AI chips to China, as well as a continued low utilization rates at mature nodes.

In H2 2025, the Foundry Business will ramp up mass production of a new mobile SoC with the 2nm GAA process. It also aims to improve factory utilization and profitability through expanded sales to major customers.

SDC To Further Accelerate Leadership By Differentiating and Enhancing Display Technologies
Samsung Display Corporation (SDC) posted KRW 6.4 trillion in consolidated revenue and KRW 0.5 trillion in operating profit for the second quarter.

For the mobile display business, SDC saw a revenue increase based on the response to new smartphones of major customers as well as the expansion of sales in the IT and automotive segments. The large display business experienced continued growth in sales of QD-OLED monitor displays, driven by robust demand in the gaming market.

In H2 2025, the mobile display business expects sales growth from major customers’ new smartphone launches amid ongoing market uncertainties. It also aims to strengthen market leadership with differentiated technologies and the continued expansion of sales beyond smartphone displays. The large display business will seek to maintain a stable supply of TV panels while continuing to accelerate the penetration of QD-OLED monitors by enhancing the product lineup.

MX Grows Revenue and Operating Profit YoY, Will Focus on Flagship Sales and AI Capabilities
The Mobile eXperience (MX) and Networks businesses posted KRW 29.2 trillion in consolidated revenue and KRW 3.1 trillion in operating profit for the second quarter.

In Q2 2025, the MX Business experienced a decrease in smartphone shipments compared to Q1, when new models were released, but both revenue and operating profit grew YoY through robust sales of the Galaxy S25 series, Galaxy A series and Galaxy tablets. The Business also maintained solid double-digit profitability via efficient resource management.

In H2 2025, the MX Business plans to continue a flagship-first approach for smartphone sales focusing on foldables and the Galaxy S25 series — while emphasizing the AI functionality of the Galaxy A series — to increase market share. It will also reinforce the AI capabilities of tablets and wearables and expand the Galaxy ecosystem with the launch of products with new form-factors, including extended reality (XR) and TriFold devices, and contribute to maintaining solid profitability despite market uncertainties and rising bill of materials (BOM) costs.

The Networks Business improved profitability in Q2 2025 by expanding revenue in overseas markets and enhancing cost efficiencies, and in H2 2025, it will focus on achieving revenue targets and regaining competitiveness by securing new orders with optimized costs.

Visual Display Enhances Sales Mix, Targets the Capture of Peak-Season Demand in H2
The Visual Display and Digital Appliances businesses posted KRW 14.1 trillion in consolidated revenue and KRW 0.2 trillion in operating profit in the second quarter.

In Q2 2025, the Visual Display Business improved the sales of premium products, such as Neo QLED and OLED TVs, but earnings declined due to stagnant demand and intensified competition.

In H2 2025, the Business plans to reinforce revenue growth by capturing peak-season demand, based on a strengthened lineup of high-value-added TVs offering superior viewing experiences with enhanced AI features. In addition, the Business will drive solid profitability and growth through its differentiated experiences and services including SmartThings, Samsung Knox, Samsung Art Store and Samsung TV Plus.

MIL OSI Global Banks –

July 31, 2025
MIL-OSI Asia-Pac: DoIT MOEA AI-Enhanced Vaccines and Anti-Pulmonary Inflammatory Drugs Shine at BIO Asia-Taiwan 2025: Health Maintenance, Prevention, and Treatment-A Triple Strategy for a Resilient and Healthy Taiwan

Source: Republic of China Taiwan

The Department of Industrial Technology (DoIT) of the Ministry of Economic Affairs (MOEA) convened three research foundations-ITRI (Industrial Technology Research Institute), FIRDI (Food Industry Research and Development Institute), and the Development Center for Biotechnology (DCB)-to establish the DoIT pavilion, which held its opening ceremony at BIO Asia-Taiwan 2025. The pavilion showcases 12 innovative technological achievements in health maintenance, disease prevention, and treatment, highlighting Taiwan’s capabilities in biomedical research and development while injecting new momentum into the health industry. Key exhibit technologies include the “Smart Processing & Equipment Integration for Plant-Based Drinks,” designed for the elderly; the “Long-Lasting Immunity of CD40 Ligand Ribonucleic Acid Vaccine Adjuvant,” developed to extend vaccine effectiveness; and the “Novel Selective FPR1 Antagonist,” which reduces side effects while improving therapeutic outcomes.

Senior Technical Specialist of the Department of Industrial Technology (DoIT), Mr. Tai Chien-Cheng , indicated that in the face of global political and economic uncertainties, pharmaceuticals have become essential strategic commodities vital to public well-being and safety. Taiwan’s strengths in research and development (R&D), regulatory frameworks, and manufacturing processes position it as a reliable partner for international pharmaceutical companies. To enhance global integration and expand cooperation, Taiwan should improve collaboration across both upstream and downstream industries, thereby increasing technical density and strengthening global competitiveness. He advocated for DoIT to continue connecting foundational resources and implementing supportive policies for R&D funding and tools to facilitate industrial advancement. The pavilion symbolizes the long-term commitment of research institutions to the “Three-Stage, Five-Level Prevention” framework, linking applications from “precision medicine” to “palliative care,” and showcasing the government’s proactive efforts in realizing the “Healthy Taiwan” policy.

In addition, several breakthroughs driven by or related to artificial intelligence (AI) are highlighted among the 12 innovative technologies showcased in the pavilion.

ITRI presents “Tumor-Derived Exosomes Enrichment and Detection Platform”, and “One-Stop Exosome Isolation and Characterization Services”. FIRDI showcases “Intelligent Preparation of Nutritional Beverages” in AI-powered biomedicine research and development.

ITRI’s “In Vivo Delivery of mRNA Encoding CAR to Macrophages for Solid Tumor Therapy” and “An Eye Drop Product for Dry AMD Treatment”. DCB showcases “Rejuvenating CAR-T Cells Through the Secretion of Antibodies Targeting Immunosuppressive Axis” and “NTSR1-ADC: A Novel Therapeutics for Head and Neck Cancer” for cancer and ophthalmic conditions. These technologies highlight the progress in therapeutic drug development and the emergence of new treatment breakthroughs.

Additionally, FIRDI contributes its technical expertise through the development of “Plant-based animal fat alternative technology” and “Microorganisms in the Modification of Food Texture and Flavor”. These innovations aim to redefine the texture and quality of plant-based meats, infusing the plant-based industry with dynamic advancements.

Spokesperson: Ministry of Economic Affairs Department of Industrial Technology (Taiwan) Deputy Director General Chou Chung-Pin
Telephone:02-23212200 extension 8121
Email:cbjou@moea.gov.tw

Contact person:Ministry of Economic Affairs Department of Industrial Technology (Taiwan) Technical Specialist Tai Chien-Cheng
Telephone:02-23212200 extension 8180
Email:cctai@moea.gov.tw

Media contact:Ministry of Economic Affairs Department of Industrial Technology (Taiwan) Researcher
Telephone:02-23212200 extension 8155,0910-660322
Email:yschi@moea.gov.tw

MIL OSI Asia Pacific News –

July 30, 2025

MIL-OSI: Amundi: First half and second quarter 2025 results

Source: GlobeNewswire (MIL-OSI)

Amundi: First half and second quarter 2025 results

Record inflows of +€52bn in the first half of the year

Inflows already at full year 2024 level		Assets under management¹at an all-time high of €2.27tn at end-June 2025, +5% June/June despite the negative forex effect Net inflows +€52bn in H1, of which +€20bn in Q2 +€48bn in medium-to-long-term assets²(MLT) in H1 Record half-year net inflows for Institutionals: +€31bn

Growth in profit before tax		First half 2025: profit before tax³^,⁴€895m, up +4% H1/H1⁴: Driven by revenue growth (+5%) Cost control, with a cost-income ratio at 52.5%³

Continued success on strategic pillars		Partnership with Victory Capital finalised on 1 April Strong H1 inflows in strategic priorities: Third-party distribution +€13bn, of which 40% with digital players Asia +€22bn, of which +€13bn in JVs and +€8bn in direct distribution ETFs +€19bn, with success in European strategies and innovation Responsible investment: wins of key institutional mandates Amundi Technology: revenues up +48% H1/H1, strong organic growth and integration of aixigo Fund Channel: €613bn in assets under distribution, Ambitions 2025 target achieved

Paris, 29 July 2025

Amundi’s Board of Directors met on 28 July 2025 under the chairmanship of Olivier Gavalda, and approved the financial statements for the first half of 2025.

Valérie Baudson, Chief Executive Officer, said: “With net inflows of +€52bn, Amundi’s performance in the first half of the year was equivalent to the whole of 2024. The depth of our offering and our extensive expertise allow us to respond effectively to our clients’ needs, through our active strategies, passive management, responsible investment, employee savings schemes, technology services and fund distribution solutions.

Amundi has continued to grow both in terms of activity and results, with first half revenues³up +5% and profit before tax³up +4% year-on-year⁴.

Amundi has also leveraged its position as Europe’s leading asset manager, as our clients look for greater diversification in their allocations, with a renewed interest in Europe. With €2.3tn in assets under management, Amundi is the only European player among the top 10 global asset managers, and a preferred gateway for players wishing to invest on the continent. Our comprehensive range of solutions enables investors to finance European companies and economies, and we continue to expand, through ETFs and actively managed funds focused on European sovereignty.»

* * * * *

Highlights

Continued organic growth thanks to continued successes in the strategic pillars

2025 marks the final year of Ambitions 2025 plan, which set a number of strategic pillars aimed at accelerating the diversification of the Group’s growth drivers and exploiting development opportunities. Several objectives were achieved in 2024 and the first half of 2025 confirms Amundi’s growth momentum.

Amundi, the European expert: Amundi is the leading European asset manager, and the only European player among the world’s top 10⁵; this positioning allows the Group to manage ~€1.7tn in assets under management on behalf of European clients, who have entrusted it with an additional +€29bn€ in the first half to manage; Amundi invests, on behalf of its clients, more than half of its assets⁶ in euro-denominated securities; this European expertise is a key differentiator for Amundi’s comprehensive and innovative platform; the launch of new products, such as ETFs or actively managed funds to invest in the European defence sector, make it possible to nurture this distinctive element strongly quarter after quarter;
The Institutional division generated healthy net inflows of +€31bn in the fist half, thanks to several major wins, including the award of a Defined Contribution mandate with The People’s Pension in the UK(+€22bn), successes in Asia (+€5bn, particularly in China), record net inflows in Employee Savings and Retirement and the renewed interest in France in tradition life insurance “euro” contracts; in addition, Amundi secured several innovative mandates, for example with a German pension fund in private debt via the expertise of Amundi Alpha Associates, and a low-carbon mandate for Chile’s sovereign wealth fund thanks to the index and ESG expertise;
Third-Party Distribution continued to grow strongly, with assets under management up by more than +18% year-on-year excluding the contribution of US Distribution to Victory Capital (scope effect of -€62bn), thanks to 12-month net inflows of +€33bn, of which +€13bn⁷ was in the first half of 2025, mainly in MLT assets⁸, (+€12.1bn); net inflows were driven by ETFs and positive in active management, diversified by geographical areas and positive in almost all countries in terms of MLT assets⁸, particularly in Asia (+€3bn); the strong commercial momentum with digital platforms is confirmed, with this type of client accounting for around 40% of net inflows for the first half; it should be noted that a workshop dedicated to Third-Party Distribution was held on 19 June, in London to highlight the growth potential of this strategic focus of the MTP;

Asia: assets under management were up +2% year-on-year despite the decline in the US dollar and the Indian rupee, to reach €460bn; half-year net inflows reached +€22bn, of which +€14bn was in the second quarter; half-year net inflows were split +€14bn from JVs (including Amundi BOC WM) and +€8bn from direct distribution; it is also diversified by countries: India (+€7bn), China (+€5bn) with the two JVs, institutional clients and now the QDLP⁹ license in Third-Party Distribution¹⁰, Korea (+€5bn) thanks to the JV, Hong Kong (+€3bn) and Singapore (+€1bn) thanks to institutional investors and third-party distributors;
ETFs gathered +€19bn this half-year, placing Amundi in second place in the European ETF market in terms of net inflows as well as assets under management, which reached €288bn; this high level of activity was achieved thanks to the diversification of the business line by client types, geographies and asset classes covered: Asia and Latin America contributed +€4bn in net inflows over the half-year; the net inflows also reflect the success of the business line’s flagship products: the Stoxx Europe 600 ETF collected nearly +€3bn in the first half and assets now exceed €12bn; European strategies continued to benefit from investors’ renewed interest in the European markets, with +€4bn attracted in the second quarter alone; innovative products were launched, such as the low-duration euro zone sovereign green bonds ETF, capitalising on the success of the long-duration version, which reached €3bn in assets under management, and the launch in May of the European Defence ETF, in partnership with STOXX, on a platform and with partners only in Europe;
Amundi Technology continues to grow, with revenues up +48% H1/H1, thanks to strong organic growth amplified by the integration of aixigo; Amundi Technology has won new clients during this period, including AJ Bell in the UK.
Fund Channel, the fund distribution platform, has exceeded its target Ambitions 2025 target six months ahead of schedule, with €613bn in assets under distribution; the subsidiary has launched Fund Channel Liquidity, a multi-management platform for treasury products, in partnership with the Liquidity Solutions teams of Amundi and CACEIS; the platform has already been recognised with the innovation award of the AFTE (French association of corporate treasurers);
Following the success of Ambitions 2025, a new three-year strategic plan will be presented in the fourth quarter.

On 1 April, Amundi finalised its partnership with Victory Capital and received shares representing 26% of the share capital in return for contributing Amundi US to Victory. This stake is consolidated in the second quarter accounts under the equity method, with a one-quarter lag compared to Victory Capital’s publications because the company, listed on the Nasdaq, publishes its accounts after those of Amundi (on 8 August for its second quarter 2025 results). Assets under management are consolidated at 26% in a separate line (Victory Capital – US distribution” for the portion distributed to US clients, and at 100% in the relevant client segments and asset classes for the portion managed by Victory Capital but distributed by Amundi to clients outside the United States.

Activity

Record inflows in the first half of the year of +€52bn, already at the level of the whole of 2024

Assets under management¹as at 30 June 2025 rose by +5.2% year-on-year, to reach an all-time high at €2,267bn. They benefited over 12 months from a high level of net inflows, +€75bn, the positive effect of market appreciation for +€109bn, more than half reduced by the unfavourable impact of currency moves (-€60bn) linked to the fall in the US dollar and the Indian rupee.

These two currencies fell vs. the euro in average for the second quarter by -5% and -7% respectively year-on-year and by -7% and -6% quarter-on-quarter. In the first half of 2025 and also in average terms, the US dollar is down by -1% and the Indian rupee by -4% compared to the first half of 2024.

In the first half of 2025, the market effect and the forex effect amounted to +€58bn and -€73bn respectively,

Amundi recorded a scope effect of -€10bn related to the finalisation of the partnership with the American asset manager Victory Capital in the second quarter.

Net inflows were healthy at +€52bn in the first half of the year, almost reaching the level of the whole of 2024 (+€55bn), and far exceeding it in assets MLT⁸ excluding JVs and US distribution at +€48bn (compared to +€34bn for the whole of 2024).

These MLT net inflows⁸ (+€26bn) were driven by passive management (+€44bn), in particular ETFs (+€19bn) and active management (+€9bn), driven by fixed income strategies.

Treasury products excluding JVs and US distribution posted outflows of -€9bn over the half-year, entirely due to withdrawals from corporate clients, which were particularly strong over the first half (€15bn); on the contrary, all other client segments posted net inflows on this asset class, reflecting the wait-and-see attitude in the face of volatility in risky asset markets.

The three main client segments contributed to the net inflows of +€52bn:

the Retail segment, at +€7bn, thanks to Third-Party Distributors (+€13bn) and Amundi BOC WM (+€1.0bn), while risk aversion continues to affect net inflows from Partner networks;
the Institutional segment, at +€31bn, particularly in fixed income and equities thanks to the gain in the first quarter of The People’s Pension mandate (+€21bn, +22 in H1); all sub-segments contributed, to note the very high level of activity in Employee Savings & Retirement, at +€4bn, a record since the creation of Amundi, and the mandates of the insurers of Crédit Agricole and Société Générale, at +€9bn, which benefited from the renewed interest of French savers in life “euro” contracts;
and finally, JVs (+€13bn) posted a very positive performance over the half-year; despite market volatility in India, the SBI MF subsidiary gathered +€7bn thanks to a rebound in the second quarter, NH-Amundi (South Korea) +€5bn, and ABC-CA (China) +€2bn (excluding the discontinued Channel business), mainly driven by treasury products.
The net inflows from the US distribution of Victory Capital, recorded only over one quarter and only for the Group’s share of 26%, were at breakeven.

In the second quarter, net inflows reached +€20.4bn, divided between:

the MLT assets⁸ at +€11.1bn, driven by Third-Party Distributors (+€5bn) and the Institutional division (+€10.8bn); the activity was at a record level in Employee Savings & Retirement, even for a seasonally high quarter (+€4.1bn) and Crédit Agricole and Société Générale insurance mandates recorded a good performance (+4.6bn€), in the context already mentioned of the renewed interest in life “euro” contracts and the arbitrage of treasury products in favour of short-duration bonds; as regards asset classes, ETFs confirmed their success (+€8.2bn), but also positive net inflows in active management (+€2.9 billion), driven by fixed income;
JVs, for +€10.3bn, thanks in particular to the rebound in SBI MF’s activity in India (+€7.8bn) after two quarters of market volatility and withdrawals related to the end of the fiscal year in the first quarter; ABC-CA (China, +€1.2bn excluding Channel Business) also confirmed the recovery of its activity, particularly in fixed income, driven by a more favourable local market;
Treasury products posted outflows (-€1.0bn), with the continuation of seasonal withdrawals from Corporates (-€3.8bn), while all other segments posted net inflows or at least breakeven.

First half 2025 results

The income statement for the first half of 2025 includes, in the first quarter, Amundi US fully integrated in each line of the P&L and, in the second quarter, the equity-accounted contribution of Victory Capital (Group share, i.e. 26%). As Victory Capital has not yet published its earnings for this period, this contribution is estimated by taking Group share of the net profit for the first quarter of 2025.

The first half of 2024 has been restated in a comparable manner, i.e. as if Amundi US had been fully integrated in the first quarter and accounted for using the equity method in the second quarter (@100%)

Profit before tax³+4% H1/H1⁴

Adjusted data³

The Group’s results for the first half of 2025 include, in addition to the 26% equity contribution of Victory Capital, the contribution of aixigo, acquisition of which was finalised in early November 2024, as well as Alpha Associates, an acquisition finalised early April 2024, which were therefore not integrated or only partially integrated in the first half of 2024.

Victory Capital’s contribution is accounted for under the equity method for its 26% share with a one-quarter lag.

The profit before tax³reached €895m in up +4.2% compared to the first half of 2024 pro forma⁴. This growth comes mainly from revenue growth.

Adjusted net revenues³ reached €1,703m, +4.9% compared to the first half of 2024 (+4,0% excluding the integration of aixigo and an additional quarter of Alpha Associates). Contributing to this progression, at current scope:

Net Management Fees grew by +4.6% compared to the first half of 2024 pro forma⁴, at €1,542m, and reflect the increase in average assets under management² thanks to the good level of activity, despite the negative effect of the product mix on revenue margins;
Amundi Technology’s revenues, at €52m, grew strongly (+48.0% compared to the first half of 2024), amplified by the consolidation of aixigo (+€8m), organic growth was +25%;
Financial and other revenues³ amounted to €52m, +10.4% compared to the first half of 2024 on a pro forma basis⁴ thanks to capital gains on seed private equity investments and the portfolio’s positive mark-to-market in the first quarter, although the half-year remains characterised by the negative impact on voluntary investments of the fall in short-term rates in the euro zone, which halved in one year;
Performance fees (€58m), on the other hand, decreased by -13.2% compared to the first half of 2024 on a pro forma basis⁴, reflecting greater market volatility since the beginning of the year, particularly in the second quarter; however, the performance of Amundi′s management remains good, with more than 70% of assets under management ranked in the first or second quartiles according to Morningstar¹¹ over 1, 3 or 5 years, and 243 Amundi funds rated 4 or 5 stars by Morningstar as at 30 June.

The increase in adjusted operating expenses³, €894m, is +5,3% compared to the first half of 2024 pro forma⁴ and +3,4% excluding the integration of aixigo and an additional quarter of Alpha Associates. The jaws effect is therefore slightly positive on a like-for-like basis, reflecting the Group’s operational efficiency.

In addition to the scope effect, this increase is mainly due to investments in the development initiatives of the Ambitions 2025 plan, particularly in technology, third-party distribution and Asia.

The cost-income ratio at 52,5%, on an adjusted basis³, is stable compared to the first half of last year, and in line with the Ambitions 2025 target (<53%).

The adjusted gross operating income³reached €808m, up +4,5% compared to the first half of 2024 pro forma⁴, reflecting growth in revenues and cost control.

The contribution of equity-accounted JVs¹², at €66m, up +7.1% compared to the first half of 2024, reflects the strong momentum of the Indian JV SBI MF (+7.4%), which accounts for nearly 80% of the contribution of JVs. The commercial dynamism of the JV allowed the continued growth of its management fees and more than offset the effects of the depreciation of the Indian rupee (-€3m, or -6 percentage points of growth). The half-year contribution also benefited from the profitability of the Chinese JV ABC-CA.

The adjusted contribution³of the U.S. operations, accounted for under the equity method, which includes Victory Capital’s Group share (26%) contribution from the second quarter onward, amounts to €26m. As explained, this figure corresponds to Victory Capital’s first quarter adjusted net income, due to the lag in publication and therefore does not take into account the synergies that were announced as part of the combination with Amundi US ($110m at 100%, full year before tax) and of which $50m had already been achieved at the time of the finalisation of the partnership. The comparison with Amundi US contribution in the second quarter of 2024, at €32m, which also included positive non-recurring items, is therefore not relevant.

The adjusted corporate tax expense³ of the first half of 2025 reached -€259m, a very strong increase – +35.0% – compared to the first half of 2024 pro forma⁴.

In France, in accordance with the Finance Act for 2025, an exceptional tax contribution is recorded in the 2025 fiscal year. It is calculated on the average of the taxable profits made in France in 2024 and 2025. This exceptional contribution is estimated¹³ to -€72m for the year as a whole, and is not accounted for on a straight-line basis over the quarters. Thus, it amounted to -€54m in the first half of 2025. Excluding this exceptional contribution, the adjusted tax expense³ would have been -€205m and the adjusted effective tax rate³ would be equivalent to that of the first half of 2024.

Adjusted net income³ rose to €638m. Excluding the exceptional corporate income tax contribution, it would have reached €692m, up +4% compared to the first half of 2024 pro forma⁴.

Adjusted³earnings per share was €3.11 in the first half of 2025, including -€0.26 related to the exceptional tax contribution in France. Excluding this exceptional contribution, adjusted³ earnings per share would therefore have been €3.37, up +3.3% compared to the first half of 2024 pro forma⁴.

Accounting data in the first half of 2025

Accounting net income group share amounted to nearly one billion euros, at €998m. It includes a non-cash capital gain of €402m related to the finalisation of the partnership with Victory Capital.

As a reminder, this operation took the form of a share swap and did not give result in any cash payment. The accounting capital gain corresponds to the difference between the market value of what Amundi Group received at the transaction date, namely 26% of the share capital of the new entity Victory Capital, and the historical accounting price of Amundi US that the Group contributed to Victory Capital.

As in the other half-years, the reported net income includes various non-cash expenses as well as integration costs related to the partnership with Victory Capital, finalised on 1 April 2025. Finally, Victory Capital’s contribution also includes a number of expenses, including the amortisation of intangible assets. See the details of all these elements in p. 17).

Accounting earnings per share in the first half of 2025 was €4.86, including the capital gain and the exceptional tax contribution in France.

Second quarter 2025 results

The quarterly series have been restated as if Amundi US had been consolidated using the 100% equity method up to and including the first quarter of 2025. In the second quarter, following the finalisation of the partnership with Victory Capital, the contribution of Amundi US was replaced by the consolidation under the equity method of the Group share (26%) in Victory Capital, with a one-quarter lag in publication (integration for the second quarter 2025 of the net income published by Victory Capital in the first quarter of 2025).

Q2/Q2 decline in profit before tax³due to performance fees and financial revenues

Adjusted data³

The results include aixigo, acquisition of which was finalised in early November 2024.

Adjusted net revenues³ totalled €790m, down -1.0% compared to the second quarter of 2024 pro forma⁴, but business-related revenues, management fees and technology revenues, were up:

Net Management Fees grew by +1.2% compared to the second quarter of 2024 pro forma⁴, at €717m, thanks to the increase in average assets under management² over the same period, despite the unfavourable effect of the product mix on margins and the negative impact of the depreciation of the US dollar, which is the currency of approximately 25% of invested assets²; compared to the first quarter of 2025 pro forma⁴, two-thirds of the decline in these fees are explained by the fall in the US dollar;
Amundi Technology’s revenues, at €26m, continued their sustained growth (+46.2% compared to the second quarter of 2024), amplified by the consolidation of aixigo (+€3m); excluding aixigo, these revenues were up +30% organically;
Performance fees were down due to market volatility (28.9% compared to the second quarter of 2024 pro forma⁴), but they are higher than in the first quarter on a pro forma basis⁴ (+53,5%);
Financial revenues (-47.2%) were down due to the fall in short-term rates in the euro zone over the period.

Adjusted operating expenses³ are under control at €417m, i.e. +1,6% compared to the second quarter of 2024 pro forma⁴ and were stable excluding aixigo, reflecting the Group’s operational efficiency. Investments in the development initiatives of the Ambitions 2025 plan continued, particularly in technology, third-party distribution and Asia.

The cost-income ratio at 52,7% on an adjusted data basis³ is in line with the Ambitions 2025 objective (<53%).

The optimisation plan, which was announced in the first quarter, has been launched and will finance the acceleration of investments by generating between €35 and €40m in savings from 2026. The first concrete announcements were made in the second quarter, including the merger between CPR and BFT to create a leader in asset management in France within the Group, with around €100bn in assets under management. The restructuring costs of this plan will be recorded for an amount of €70 to 80m¹⁴in the second half of the year.

The Adjusted gross operating income³(GOI) amounted to €374m, down -3,8% compared to the second quarter of 2024 pro forma⁴.

The contribution of JVs¹⁵, at €38m (+16.6%), increased strongly thanks to the growth in activity and management fees of the main contributing entity, the Indian JV SBI MF (+19%), as well as the good profitability of the JV in China ABC-CA.

The adjusted contribution³of the U.S. operations, accounted for like JVs under the equity method, reflects for the first time this quarter the contribution of Victory Capital to the group share (26%), at €26m. As explained, this figure corresponds to Victory Capital’s first quarter result due to the publication lag, and therefore does not yet take into account the synergies that were announced as part of the combination with Amundi US ($110m at 100%, full-year before tax) and of which $50m were realised at the time of the finalisation of the partnership on 1 April 2025. The comparison with Amundi US’s contribution to Group net income in the second quarter of 2024 (€32m), which also included positive non-recurring items, is therefore not relevant. In addition, the average US dollar fell by -5% year-on-year, also weighing on this contribution.

Adjusted income before tax³reached €437m, down -1.8% compared to the second quarter of 2024 pro forma⁴.

The adjusted corporate tax expense³ of the second quarter of 2025 reached -€104m, up +9% compared to the second quarter of 2024 pro forma⁴.

In France, in accordance with the Finance Act for 2025, an exceptional tax contribution is recorded in the 2025 fiscal year. It is calculated on the average of the profits made in France in 2024 and 2025. This exceptional contribution is estimated¹⁶ at -€72m for the full year, is not accounted for on a straight-line basis. It amounted to -€9m in the second quarter of 2025, compared to -€46m in the first quarter. Excluding this exceptional contribution, the adjusted tax expense³ would have been -€95m and the adjusted³ effective tax rate 25.4%, equivalent to that of the second quarter of 2024 pro forma⁴.

Adjusted net income³ was €334m. Excluding the exceptional tax contribution, it would have been €343m.

Adjusted³earnings per share in the second quarter of 2025 achieved €1.63, including -4 cents related to the exceptional tax contribution in France.

Accounting data in the second quarter of 2025

Accounting net income group share amounted to €715m. It includes the non-cash capital gain of €402m related to the completion of the partnership with Victory Capital.

As in the previous quarters, reported net income includes various non-cash expenses as well as integration costs related to the partnership with Victory Capital, finalised on 1 April 2025. Finally, Victory Capital’s contribution also includes a number of expenses, including the amortisation of intangible assets. See the details of all these elements in p. 17).

Accounting earnings per share in the second quarter of 2025 reached €3.48, including the capital gain on the Victory Capital transaction and the exceptional tax contribution in France.

A solid financial structure, €1.3bn in surplus capital

Tangible equity¹⁷ amounted to €4.3bn as at 30 June 2025, down slightly compared to the end of 2024 due to the payment of dividends (-€0.9bn) for the fiscal year 2024 and the impact of foreign exchange (-€0.2bn), most of which were offset by accounting net income for the first half of the year, including the capital gain related to this transaction (+€1.0bn), including the capital gain related to the partnership with Victory Capital (+€0.4bn).

As indicated at the time of signing in July 2024, the partnership with Victory Capital did not have a significant effect on the CET1 ratio.

The capital surplus at the end of the first quarter stood at €1.3bn.

In a press release dated 4 July, the rating agency FitchRatings confirmed Amundi’s A+ issuer rating¹⁸ with a stable outlook, the best in the sector.

* * * * *

APPENDICES

Adjusted income statement³of the first half of 2025

(M€)	H1 2025	H1 2024*	% ch. H1/H1*

Net revenue – adjusted	1,703	1,623,	+4.9%
Management fees	1,542	1,475	+4.6%
Performance fees	58	66	-13.2%
Technology	52	35	+48.0%
Financial income and other revenues	52	47	+10.4%
Operating expenses – adjusted	(894)	(849)	+5.3%
Cost/income ratio – adjusted (%)	52.5%	52.3%	+0.2pp
Gross operating income – adjusted	808,	773,	+4.5%
Cost of risk & others	(6)	(8)	-28.7%
Equity-accounted companies – JVs	66	61	+7.1%
Equity-accounted companies – Adjusted Victory Capital	26	32	-16.8%
Income before tax – adjusted	895	858,	+4.2%
Corporate tax – adjusted	(259)	(192)	+35.0%
Non-controlling interests	2	1	+88.1%
Net income group share – adjusted	638,	668,	-4.5%
Amortization of intangible assets after tax	(28)	(32)	-10.8%
Integration costs and amortisation of the PPA after tax	(7)	0	NS
Victory Capital adjustments (after tax, on a co-payment basis)	(7)	0	NS
Victory Capital Capital Capital Gain, after tax	402	0	NS
Net income group share	998	636	+56.9%
Earnings per share (€)	4.86	3.11	+56.3%
Earnings per share – adjusted (€)	3.11	3.26	-4.8%

* Quarterly series have been restated as if Amundi US had been consolidated using the 100% equity method up to and including Q1 2025; in H1 2025 no restatement was applied and Amundi US is therefore fully consolidated in Q1 2025, and H1 2024 was restated accordingly, ie as if Amundi US had been fully integrated in Q1 2024 and equity-accounted in Q2 2024.

Adjusted income statement³of the second quarter

(M€)	Q2 2025	Q2 2024*	% var. T2/T2*	Q1 2025*	% ch. Q2/Q1*

Net revenue – adjusted	790	799	-1.0%	823	-3.9%
Management fees	717	709	+1.2%	737	-2.7%
Performance fees	35	49	-28.9%	23	+53.5%
Technology	26	17	+49.8%	26	+0.7%
Financial income & other revenues	12	23	-47.2%	37	-66.9%
Operating expenses – adjusted	(417)	(410)	+1.6%	(416)	+0.2%
Cost/income ratio – adjusted (%)	52,7%	51,4%	+1.4pp	50.6%	+2.2pp
gross operating income – adjusted	374	388	-3.8%	407	-8.1%
Cost of risk & others	(1)	(8)	-82.4%	(4)	-67.4%
Equity-accounted companies – JVs	38	33	+16.6%	28	+38.6%
Equity-accounted companies – Adjusted Victory Capital	26	32	-16.8%	22	+21.2%
Income before tax – adjusted	437	445	-1.8%	452	-3.3%
Corporate tax – adjusted	(104)	(95)	+9.0%	(149)	-30.6%
Non-controlling interests	1	0	NS	1	+32.6%
Net income group share – adjusted	334	350	-4.5%	303	+10.2%
Amortization of intangible assets after tax	(15)	(17)	-13.7%	(14)	+8.8%
Integration costs and amortisation of the PPA after tax	(1)	0	NS	(3)	-78.2%
Victory Capital adjustments (after tax, on a co-payment basis)	(7)	0	NS	(4)	+62.2%
Victory Capital Capital Capital Gain, after tax	402	0	NS	0	NS
Net income group share	715	333	NS	283	NS
Earnings per share (€)	3.48	1.63	NS	1.38	NS
Earnings per share – adjusted (€)	1.63	1.71	-4.8%	1.48	+10.2%

* Quarterly series have been restated as if Amundi US had been consolidated using the 100% equity method up to and including Q1 2025; In H1 2025 no restatement was applied and Amundi US is therefore fully consolidated in Q1 2025, and H1 2024 was restated accordingly, ie as if Amundi US had been fully integrated in Q1 2024 and equity-accounted in Q2 2024.

Pro Forma Historical Series³Adjusted⁴– First semester

(m€)	H1 2025	H1 2024	-Contrib. Amundi US T2 2024	H1 2024 pro forma	% ch. 25/24	% ch. 25/24 pro forma

Net management fees	1,542	1,560	85	1,475	-1.2%	-1.4%
Performance fees	58	67	1	66	-14.1%	-13.6%
Net asset management revenues	1,599	1,627	86	1 541	-1.7%	-1.9%
Technology	52	35	0	35	+48.0%	+48.0%
financial income & other revenues	12	6	3	3	NS	NS
Financial income & other revenues – adjusted	52	50	3	47	+4.1%	+6.6%
Net revenue (a)	1,663	1 667	89	1,578	-0.3%	-0.3%
Net revenue – adjusted (b)	1,703	1 711	89	1,623	-0.5%	-0.6%
Operating expenses (c)	(905)	(900)	(51)	(849)	+0.6%	-1.4%
Operating expenses – adjusted (d)	(894)	(900)	(51)	(849)	-0.6%	-2.0%
Gross operating income (e)=(a)+(c)	758	767	38	729	-1.2%	+0.9%
Gross operating income – adjusted (f)=(b)+(d)	808	811	38	773	-0.4%	+0.9%
Cost/income ratio (%) -(c)/(a)	54.4%	54.0%	57.2%	53.8%	0.44pp	-0.56pp
Cost/income ratio – adjusted (%) -(d)/(b)	52.5%	52.6%	57.2%	52.3%	-0.06pp	-0.72pp
Cost of risk & others (g)	397	(5)	3	(8)	NS	NS
Cost of risk & others – adjusted (h)	(6)	(5)	3	(8)	+16.4%	-29.7%
Equity-accounted companies – JV (i)	66	61		61	+7.1%	+7.1%
Equity-accounted companies – US operations (j)	20	0	(32)	32	NS	+18.1%
Equity-accounted companies – U.S. operations – adjusted (k)	26	0	(32)	32	NS	+51.8%
Income before tax (l)=(e)+(g)+(i)+(j)	1,240	824	9	814	+50.6%	+51.8%
Income before tax – adjusted (m)=(f)+(h)+(i)+(k)	895	868	9	858	+3.1%	+3.5%
Corporate tax (n)	(245)	(189)	(9)	(179)	+29.6%	+33.8%
Corporate tax – adjusted (o)	(259)	(201)	(9)	(192)	+28.8%	+32.0%
Non-controlling interests (p)	2	1	0	1	+88.1%	+88.1%
Net income group share (q)=(l)+(n)+(p)	998	636	0	636	+56.9%	+56.9%
Net income group share – adjusted (r)=(m)+(o)+(p)	638	668	0	668	-4.5%	-4.5%

Earnings per share (€)	4.86	3.11		3.11	+56.3%	+56.3%
Earnings per share – adjusted (€)	3.11	3.26		3.26	-4.8%	-4.8%

Pro Forma Historical Series³Adjusted⁴– Quarters 2024-2025

(m€)	Q2 2025	Q2 2024	-Contrib. Amundi US Q2 2024	Q2 2024 pro forma	% ch. T2/T2	% var. Q2/Q2 pro forma	Q1 2025*	-Contrib. Amundi US T1 2025	Q1 2025 pro forma	% ch. T2/T1	% var. Q2/Q1 pro forma
Net management fees	717	794	85	709	-9.7%	+1.2%	824	88	737	-13.0%	-2.7%
Performance fees	35	50	1	49	-29.9%	-28.9%	23	0	23	+52.0%	+53.5%
Net asset management revenues	752	844	86	758	-10.9%	-0.8%	847	88	760	-11.2%	-1.0%
Technology	26	17	0	17	+49.8%	+49.8%	26	0	26	+0.7%	+0.7%
Financial income and other revenues	(7)	3	3	(0)	NS	NS	19	2	18	NS	NS
Financial income and other revenues – adjusted	12	26	3	22	-52.9%	-43.7%	39	2	37	-68.4%	-66.9%
Net income (a)	771	864	89	775	-10.8%	-0.6%	892	90	803	-13.7%	-4.0%
Net income – adjusted (b)	790	887	89	799	-10.9%	-1.0%	912	90	823	-13.4%	-3.9%
Operating expenses (c)	(418)	(461)	(51)	(410)	-9.2%	+2.0%	(486)	(67)	(419)	-14.0%	-0.2%
Operating expenses – adjusted (d)	(417)	(461)	(51)	(410)	-9.6%	+1.6%	(478)	(62)	(416)	-12.8%	+0.2%
Gross Operating Income (e)=(a)+(c)	352	403	38	365	-12.6%	-3.5%	406	22	384	-13.3%	-8.2%
Rross operating income – adjusted (f)=(b)+(d)	374	426	38	388	-12.4%	-3.8%	434	28	407	-14.0%	-8.1%
Cost/income ratio (%) -(c)/(a)	54.3%	53.4%	57.2%	52.9%	0.95pp	1.38pp	54.5%	75.0%	52.2%	-0.20pp	2.08pp
Cost/income ratio – adjusted (%) -(d)/(b)	52.7%	51.9%	57.2%	51.4%	0.79pp	1.37pp	52.4%	69.0%	50.6%	0.35pp	2.16pp
Cost of risk & others (g)	401	(5)	3	(8)	NS	NS	(4)	(0)	(4)	NS	NS
Cost of Risk & Other – adjusted (h)	(1)	(5)	3	(8)	-71.0%	-82.4%	(4)	(0)	(4)	-67.9%	-67.4%
Equity-accounted companies – JV (i)	38	33	0	33	+16.6%	+16.6%	28	0	28	+38.6%	+38.6%
Equity-accounted companies – US operations (j)	20	0	(32)	32	NS	-37.7%	0	(18)	18	NS	+11.7%
Equity-accounted companies – U.S. operations – adjusted (k)	26	0	(32)	32	NS	-16.8%	0	(22)	22	NS	+21.2%
Profit before tax (l)=(e)+(g)+(i)+(j)	811	431	9	421	+88.3%	+92.5%	429	5	425	+89.0%	+91.0%
Profit before tax – adjusted (m)=(f)+(h)+(i)+(k)	437	454	9	445	-3.8%	-1.8%	458	10	452	-4.5%	-3.3%
Corporate tax (n)	(97)	(98)	(9)	(89)	-0.5%	+10.1%	(147)	(5)	(143)	-33.7%	-31.6%
Corporate tax – adjusted (o)	(104)	(105)	(9)	(95)	-0.8%	+9.0%	(155)	(6)	(149)	-33.2%	-30.6%
Non-controlling interests (p)	1	0	0	0	NS	NS	1	0	1	+32.6%	+32.6%
Net income group share (q)=(l)+(n)+(p)	715	333	0	333	NS	NS	283	0	283	NS	NS
Net income group share – adjusted (r)=(m)+(o)+(p)	334	350	0	350	-4.5%	-4.5%	303	0	303	+10.2%	+10.2%

Earnings per share (€)	3.48	1.63		1.63	NS	NS	1.38		1.38	NS	NS
Earnings per share – adjusted (€)	1.63	1.71		1.71	-4.8%	-4.8%	1.48		1.48	+10.2%	+10.2%

Definition of assets under management

Assets under management and net inflows including assets under advisory and marketed and funds of funds, including 100% of assets under management and net inflows from Asian JVs; for Wafa Gestion in Morocco, assets under management and net inflows are taken over by Amundi in the capital of the JV

Evolution of assets under management from the end of 2021 to the end of June 2025

(€bn)	*Assets under management*	*Collection* *Net*	*Market and exchange rate effect*	*Scope* *effect*			*Change in assets under management* *vs. prior quarter*
As of 31/12/2021	2,064					+14%¹⁹
Q1 2022		+3.2	-46.4		–
As of 31/03/2022	2,021					-2.1%
Q2 2022		+1.8	-97.7		–
As of 30/06/2022	1,925					-4.8%
Q3 2022		-12.9	-16.3		–
As of 30/09/2022	1,895					-1.6%
Q4 2022		+15.0	-6.2		–
As of 31/12/2022	1,904					+0.5%
Q1 2023		-11.1	+40.9		–
As of 31/03/2023	1,934					+1.6%
Q2 2023		+3.7	+23.8		–
As of 31/06/2023	1,961					+1.4%
Q3 2023		+13.7	-1.7		–
As of 30/09/2023	1,973					+0.6%
Q4 2023		+19.5	+63.8		-20
As of 31/12/2023	2,037					+3.2%
Q1 2024		+16.6	+62.9		–
As of 31/03/2024	2,116					+3.9%
Q2 2024		+15.5	+16.6		+7.9
30/06/2024	2,156					+1.9%
Q3 2024		+2.9	+32.5		–
30/09/2024	2,192					+1.6%
Q4 2024		+20.5	+28.1		–
31/12/2024	2,240					+2.2%
Q1 2025		+31.1	-24.0		–
31/03/2025	2,247					+0.3%
Q2 2025		+20.4	+10.1		-10.6
30/06/2025	2,267					+0.9%

Total over one year between 30 June 2024 and 30 June 2025: +5.2%

Net inflows +€74.9bn
Market effect +€108.8bn
Forex effect -€62.1bn
Scope effects -€10.6bn
(Q2 2025 effect of the exit of Amundi US assets under management from Amundi US and the acquisition of 26% of Victory Capital assets under management in the US, the acquisition of aixigo has no effect on assets under management)

Details of assets under management and net inflows by client segments²⁰

(€bn)	AuM 30.06.2025	AuM 30.06.24	% change /30.06.24	Q2 2025 inflows	Q2 2024 inflows	H1 2025 inflows	H1 2024 inflows
Networks France	139	133	+4.3%	-0.7	-2.4	-0.5	-0.9
International networks	161	165	-2.5%	-2.9	-0.8	-5.6	-2.8
Of which Amundi BOC WM	3	3	-15.0%	+0.7	+0.4	+1.0	+0.1
Third-Party Distributors	350	359	-2.5%	+5.0	+5.4	+13.3	+12.4
Retail	650	658	-1.1%	+1.4	+2.2	+7.2	+8.7
Institutional & Sovereigns (*)	548	520	+5.4%	+1.7	+1.1	+31.8	+10.7
Corporates	107	108	-1.4%	-3.7	-3.9	-14.0	-8.1
Company savings	101	90	+12.8%	+4.9	+3.8	+4.0	+2.9
CA & SG Insurers	445	424	+4.8%	+5.9	+0.8	+9.4	+1.7
Institutional	1,201	1,142	+5.1%	+8.7	+1.7	+31.2	+7.3
JVs	359	356	+0.6%	+10.3	+11.6	+13.2	+16.1
Victory- US distribution	58	0	NS	-0.0	0.0	-0.0	0.0
Total	2,267	2,156	+5.2%	+20.4	+15.5	+51.6	+32.1

(*) Including funds of funds

Details of assets under management and net inflows by asset classes²⁰

(€bn)	AuM 30.06.2025	AuM 30.06.2024	% change /30.06.2024	Q2 2025 inflows	Q2 2024 inflows	H1 2025 inflows	H1 2024 inflows
Actions	556	515	+8.0%	+6.9	+3.2	+33.3	+0.7
Diversified	270	282	-4.3%	+0.1	+0.7	-0.9	-6.9
Obligations	737	706	+4.3%	+6.6	+10.1	+20.9	+24.0
Real, alternative, and structured	108	112	-4.0%	-2.5	+1.0	-5.2	+0.7
TOTAL MLT ASSETS excl. JV & US Distribution	1,671	1,616	+3.4%	+11.1	+15.1	+48.0	+18.5
Treasury products excl. JVs & US Distribution	180	184	-2.1%	-1.0	-11.2	-9.6	-2.5
TOTAL ASSETS excl. JV & US Distribution	1,851	1,800	+2.8%	+10.2	+3.9	+38.4	+16.0
JVs	359	356	+0.6%	+10.3	+11.6	+13.2	+16.1
Victory-distribution US	58	0	NS	-0.0	0.0	-0.0	0.0
TOTAL	2,267	2,156	+5.2%	+20.4	+15.5	+51.6	+32.1
*Of which MLT assets*	*2,051*	*1,938*	*+5.8%*	*+16.5*	*+23.7*	*+56.3*	*+31.5*
*Of which treasury products*	*216*	*218*	*-0.9%*	*+3.9*	*-8.3*	*-4.7*	*+0.6*

Details of assets under management and net inflows by type of management and asset classes²⁰

(€bn)	AuM 30.06.2025	AuM 30.06.24	% change /30.06.24	Q2 2025 inflows	Q2 2024 inflows	H1 2025 inflows	H1 2024 inflows
Active management	1,118	1,122	-0.4%	+2.9	+8.0	+9.1	+9.3
Equities	196	207	-5.4%	-0.8	-0.4	-4.8	-3.1
Multi-assets	261	272	-3.8%	+0.0	+0.3	-0.9	-7.7
Bonds	661	643	+2.7%	+3.7	+8.1	+14.9	+20.2
Structured products	41	42	-0.3%	-1.4	+1.3	-3.5	+1.9
Passive management	446	382	+16.7%	+10.7	+6.0	+44.2	+8.5
ETFs & ETC	288	237	+21.2%	+8.2	+4.5	+18.6	+9.5
Index & Smart beta	158	144	+9.2%	+2.5	+1.5	+25.6	-1.0
Real & Alternative Assets	67	71	-6.2%	-1.0	-0.3	-1.8	-1.2
Real assets	63	67	-5.4%	-0.6	-0.1	-1.2	-0.3
Alternative	4	4	-18.4%	-0.4	-0.2	-0.5	-1.0
TOTAL MLT ASSETS excl. JV & US Distribution	1,671	1,616	+3.4%	+11.1	+15.1	+48.0	+18.5
Treasury products excl. JVs & US Distribution	180	184	-2.1%	-1.0	-11.2	-9.6	-2.5
TOTAL ASSETS excl. JV & US Distribution	1,851	1,800	+2.8%	+10.2	+3.9	+38.4	+16.0
JVs	359	356	+19.8%	+11.6	-0.9	+16.1	-1.7
Victory-US Distribution	58	0,	NS	-0.0	0.0,	-0.0	0.0,
TOTAL	2,267	2,156	+5.2%	+20.4	+15.5	+51.6	+32.1
*Of which MLT assets*	*2,051*	*1,938*	*+5.8%*	*+16.5*	*+23.7*	*+56.3*	*+31.5*
*Of which treasury products*	*216*	*218*	*-0.9%*	*+3.9*	*-8.3*	*-4.7*	*+0.6*

Details of assets under management and net inflows by geographic area²⁰

(€bn)	AuM 30.06.2025	AuM 30.06.2024	% change /30.06.2024	Q2 2025 inflows	Q2 2024 inflows	H1 2025 inflows	H1 2024 inflows
France	1,028	971	+5.9%	+8.7	+0.0	+9.3	+10.0
Italy	199	207	-3.9%	-1.4	-1.8	-3.4	-2.9
Europe excluding France & Italy	461	406	+13.6%	-1.0	+0.1	+22.8	+4.1
Asia	460	451	+2.0%	+13.8	+15.4	+21.6	+22.3
Rest of the world	119	121	-1.5%	+0.3	+1.7	+1.3	-1.3
TOTAL	2,267	2,156	+5.2%	+20.4	+15.5	+51.6	+32.1
*TOTAL outside France*	1,239	1,185	+4.6%	+11.7	+15.5	+42.3	+22.1

Methodological Annex – Alternative Performance Indicators (APIs)

Accounting and adjusted data

Accounting data – These include

the amortisation of intangible assets, recorded in other revenues, and from Q2 2024, other non-cash expenses spread according to the schedule of price adjustment payments until the end of 2029; these expenses are recognised as deductions from net revenues, in financial expenses.
integration costs related to the transaction with Victory Capital and PPA amortization related to the acquisition of aixigo are recognized in the fourth quarter of 2024 and in the first quarter of 2025 as operating expenses. No such costs were recorded in the first nine months of 2024.

The aggregate amounts of these items are as follows for the different periods under review:

Q1 2024: -€20m before tax and -€15m after tax
H1 2024: -€44m before tax and -€28m after tax
Q4 2024: -€38m before tax and -€28m after tax
Q1 2025: -€29m before tax and -€20m after tax
Q2 2025: -€28m before tax and -€22m after tax + €402m of capital gain (not taxable)
H1 2025: -€57m before tax and -€42m after tax + €402m of capital gain (not taxable)

Adjusted data – In order to present an income statement that is closer to economic reality, the following adjustments have been made: restatement of the amortization of distribution agreements with Bawag, UniCredit and Banco Sabadell, intangible assets representing the client contracts of Lyxor and, since the second quarter of 2024, Alpha Associates, as well as other non-cash expenses related to the acquisition of Alpha Associates; These depreciation and amortization and non-cash expenses are recognized as a deduction from net revenues; restatement of the amortization of a technology asset related to the acquisition of AIXIGO recognized in operating expenses. The integration costs for the transaction with Victory Capital are also restated.

Partnership with Victory Capital

Victory Capital adjusts its US GAAP accounts to better reflect the Group’s economic performance. These US GAAP to Non-GAAP adjustments include, with the figures for the first quarter of 2025 included in Amundi’s financial statements for the second quarter of 2025, the amortisation of intangible assets and other acquisition-related charges, certain business tax, stock-based compensation, acquisition, restructuring and exit costs, Debt issuance costs and the tax benefit of goodwill and acquired intangible assets.

Alternative Performance Indicators²¹

In order to present an income statement that is closer to economic reality, Amundi publishes adjusted data that are calculated in accordance with the methodological appendix presented above.

The adjusted data can be reconciled with the accounting data as follows:

= accounting data

= adjusted data

(M€)	H1 2025	H1 2024*	Q2 2025	Q2 2024	Q2 2024*	Q1 2025	Q1 2025*


Net revenue (a)	1,663	1,578	771	864	775	892	803
– Amortisation of intangible assets (bef. Tax)	(37)	(43)	(18)	(22)	(22)	(18)	(18)
– Other non-cash charges related to Alpha Associates	(3)	(1)	(1)	(1)	(1)	(1)	(1)
Net revenue – adjusted (b)	1,703	1, 623	790	887	799	912	823

Operating expenses (c)	(905)	(849)	(418)	(461)	(410)	(486)	(419)
– Integration costs (bef. tax)	(7)	0	0	0	0	(7)	(2)
– Amortisation related to aixigo PPA (bef. Tax)	(4)	0	(2)	0	0	(2)	(2)
Operating expenses – adjusted (d)	(894)	(849)	(417)	(461)	(410)	(478)	(416)

Gross operating income (e)=(a)+(c)	758	729	352	403	365	406	384
Gross operating income – adjusted (f)=(b)+(d)	808	773	374	426	388	434	407
Cost / Income ratio (%) -(c)/(a)	54.4%	53.8%	54.3%	53.4%	52.9%	54.5%	52.2%
Cost / Income ratio, adjusted (%) -(d)/(b)	52.5%	52.3%	52.7%	51.9%	51.4%	52.4%	50.6%
Cost of risk & others (g)	397	(8)	401	(5)	(8)	(4)	(4)
Cost of risk & others – Adjusted (h)	(6)	(8)	(1)	(5)	(8)	(4)	(4)
Share of net income from JVs (i)	66	61	38	33	33	28	28
Share of net income from Victory Capital (j)	20	32	20	0	32	0	18
Share of net income from Victory Capital – Adjusted (k)	26	32	26	0	32	0	22
Income before tax (l)=(e)+(g)+(i)+(j)	1,240	814	811	431	421	429	425
Income before tax – adjusted (m)=(f)+(h)+(i)+(k)	895	858	437	454	445	458	452
Corporate tax (m)	(245)	(179)	(97)	(98)	(89)	(147)	(143)
Corporate tax – adjusted (n)	(259)	(192)	(104)	(105)	(95)	(155)	(149)
Non-controlling interests (o)	2	1	1	0	0	1	1
Net income group share (q)=(l)+(n)+(p)	998	636	715	333	333	283	283
Net income group share – adjusted (r)=(m)+(o)+(p)	638	668	334	350	350	303	303

Earnings per share (€)	4.86	3.11	3.48	1.63	1.63	1.38	1.38
Earnings per share – adjusted (€)	3.11	3.26	1.63	1.71	1.71	1.48	1.48

Shareholding

	30 June 2025		31 March 2025		31 December 2024		30 June 2024
(units)	Number of shares	% of capital	Number of shares	% of capital	Number of shares	% of capital	Number of shares	% of capital
Crédit Agricole Group	141,057,399	68.67%	141,057,399	68.67%	141,057,399	68.67%	141,057,399	68.93%
Employees	4,398,054	2.14%	4,128,079	2.01%	4,272,132	2.08%	2,879,073	1.41%
Self	1,625,258	0.79%	1,961,141	0.95%	1,992,485	0.97%	963,625	0.47%
Floating	58,338,551	28.40%	58,272,643	28.37%	58,097,246	28.28%	59,747,537	29.20%

Number of equities at the end of the period	205,419,262	100.0%	205,419,262	100.0%	205,419,262	100.0%	204,647,634	100.0%
Average number of equities since the beginning of the year	205,419,262	–	205,419,262	–	204,776,239	–	204,647,634	–
Average number of equities quarter-to-date	205,419,262	–	205,419,262	–	205,159,257	–	204,647,634	–

Average number of shares prorata temporis.

The average number of shares was unchanged between Q1 2025 and Q2 2025 and increased by +0.4% between Q2 2024 and Q2 2025.
A capital increase reserved for employees was recorded on 31 October 2024. 771,628 shares were created (approximately 0.4% of the share capital before the transaction).
Amundi announced on 7 October 2024 a buyback program of up to 1 million shares (i.e. ~0.5% of the share capital before the transaction) to cover performance shares plans, which was finalised on 27 November 2024.

Financial communication calendar

Tuesday 28 October 2025: Q3 and 9-month 2025 results
Fourth quarter 2025: new medium-term strategic plan

About Amundi

Amundi, the leading European asset manager, ranking among the top 10 global players²², offers its 100 million clients – retail, institutional and corporate – a complete range of savings and investment solutions in active and passive management, in traditional or real assets. This offering is enhanced with IT tools and services to cover the entire savings value chain. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages close to €2.3 trillion of assets²³.

With its six international investment hubs²⁴, financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.

Amundi clients benefit from the expertise and advice of 5,500 employees in 35 countries.

Amundi, a trusted partner, working every day in the interest of its clients and society

www.amundi.com

Press contacts:
Natacha Andermahr
Tel. +33 1 76 37 86 05
natacha.andermahr@amundi.com

Corentin Henry
Tel. +33 1 76 36 26 96
corentin.henry@amundi.com

Investor contacts:
Cyril Meilland, CFA
Tel. +33 1 76 32 62 67
cyril.meilland@amundi.com

Thomas Lapeyre
Tel. +33 1 76 33 70 54
thomas.lapeyre@amundi.com

Annabelle Wiriath

Tel. + 33 1 76 32 43 92

annabelle.wiriath@amundi.com

DISCLAIMER

This document does not constitute an offer or invitation to sell or purchase, or any solicitation of any offer to purchase or subscribe for, any securities of Amundi in the United States of America or in France. Securities may not be offered, subscribed or sold in the United States of America absent registration under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements thereof. The securities of Amundi have not been and will not be registered under the U.S. Securities Act and Amundi does not intend to make a public offer of its securities in the United States of America or in France.

This document may contain forward looking statements concerning Amundi’s financial position and results. The data provided do not constitute a profit “forecast” or “estimate” as defined in Commission Delegated Regulation (EU) 2019/980.

These forward looking statements include projections and financial estimates based on scenarios that employ a number of economic assumptions in a given competitive and regulatory context, assumptions regarding plans, objectives and expectations in connection with future events, transactions, products and services, and assumptions in terms of future performance and synergies. By their very nature, they are therefore subject to known and unknown risks and uncertainties, which could lead to their non-fulfilment. Consequently, no assurance can be given that these forward looking statement will come to fruition, and Amundi’s actual financial position and results may differ materially from those projected or implied in these forward looking statements.

Amundi undertakes no obligation to publicly revise or update any forward looking statements provided as at the date of this document. Risks that may affect Amundi’s financial position and results are further detailed in the “Risk Factors” section of our Universal Registration Document filed with the French Autorité des Marchés Financiers. The reader should take all these uncertainties and risks into consideration before forming their own opinion.

The figures presented have been subject to a limited review from the statutory auditors and have been prepared in accordance with applicable prudential regulations and IFRS guidelines, as adopted by the European Union and applicable at that date.

Unless otherwise specified, sources for rankings and market positions are internal. The information contained in this document, to the extent that it relates to parties other than Amundi or comes from external sources, has not been verified by a supervisory authority or, more generally, subject to independent verification, and no representation or warranty has been expressed as to, nor should any reliance be placed on, the fairness, accuracy, correctness or completeness of the information or opinions contained herein. Neither Amundi nor its representatives can be held liable for any decision made, negligence or loss that may result from the use of this document or its contents, or anything related to them, or any document or information to which this document may refer.

The sum of values set out in the tables and analyses may differ slightly from the total reported due to rounding.

¹        See definition of assets under management p.14
²        Excluding JV and Victory Capital – US Distribution US, whose contributions are equity-accounted
³        Adjusted data: see p. 16
⁴        For explanations of pro forma variations, see p. 12 and 13
⁵        Source: IPE “Top 500 Asset Managers” published in June 2025
⁶        Including JV and Victory Capital – US Distribution
⁷        The inflows presented in this section are not cumulative, as they may overlap in part, for example an ETF sold to a third-party distributor in Asia.
⁸        Medium to Long-Term Assets, excluding JVs
⁹        Qualified Domestic Limited Partner, ie asset managers allowed to invest in overseas markets and raise Renminbi funds from domestic investors
¹⁰        See Third-Party Distribution Investor Workshop of 19 June 2025
¹¹        Source: Morningstar Direct, Broadridge FundFile – Open-ended funds and ETFs, global fund scope, March 2025; as a percentage of the assets under management of the funds in question; the number of Amundi open-ended funds rated by Morningstar was 1071 at the end of March 2025. © 2025 Morningstar, all rights reserved
¹²        Reflecting Amundi’s share of the net income of minority JVs in India (SBI FM), China (ABC-CA), South Korea (NH-Amundi) and Morocco (Wafa Gestion), accounted for by the equity method after tax
¹³        Under the assumption that the 2025 tax result in France will be equivalent to that of 2024 and before adjusting the average to take into account the final 2025 tax result
¹⁴        Currently being estimated
¹⁵        Reflecting Amundi’s share of the net income of minority JVs in India (SBI FM), China (ABC-CA), South Korea (NH-Amundi) and Morocco (Wafa Gestion), accounted for by the equity method after tax
¹⁶        Under the assumption that the 2025 tax result in France will be equivalent to that of 2024 and before adjusting the average to take into account the final 2025 tax result
¹⁷        Net equity minus goodwill and intangible assets
¹⁸        Long-Term Issuer Default Rating (IDR)
¹⁹        Lyxor, integrated as of 31/12/2021; sale of Lyxor Inc. in Q4 2023
²⁰        See definition of assets under management, p.14
²¹        See also the section 4.3 of the 2024 Universal Registration Document filed with the AMF on April 16, 2025 under number D25-0272
²²Source: IPE “Top 500 Asset Managers” published in June 2025, based on assets under management as at 31/12/2024
²³Amundi data as at 30/06/2025
²⁴Paris, London, Dublin, Milan, Tokyo and San Antonio (via our strategic partnership with Victory Capital)

Attachment

Amundi PR Results Q2 2025_EN

The MIL Network –

July 30, 2025

MIL-OSI China: Steaming ahead: China’s rural cafés embrace ‘coffee+’ model for deeper growth

Source: People’s Republic of China – State Council News

Customers enjoy coffee and their leisure time at a cafe in Baiyanggou Village in Urumqi County, northwest China’s Xinjiang Uygur Autonomous Region, March 15, 2025. (Xinhua/He Xiaotong)

In Daofu, a quaint county in southwest China’s Sichuan Province, traditional Tibetan homes have been beautifully transformed into cafés, seamlessly blending international favorites like coffee with local treats such as butter tea and highland barley.

“Sipping highland latte while listening to Tibetan folk songs and learning Thangka painting — what a perfect way to unwind!” exclaimed tourist Xu Xiaomei.

In this county, which is filled with Tibetan heritage, cafés don’t just serve drinks — they offer local culture. “Even our coffee cups are custom-made from Daofu’s black pottery,” said Gao Yaojun, a local hotel manager, at the hotel’s café.

Daofu now welcomes more than 1.5 million coffee-related tourist visits each year, reflecting the wider boom of café culture in China’s countryside. As of 2024, over 44,000 countryside coffee shops have sprung up nationwide.

To stand out in an increasingly crowded space, many rural cafés are turning to the “coffee+” model, which pairs coffee with experiences like hiking, handicrafts, or farm visits. It’s not just about sipping a latte — it’s about discovering what makes each place special.

In southwest China’s Guizhou Province, for example, a café perched on a 200-meter-high cliff has gone viral online. Adventurous visitors embark on a challenging trek through the forest and climb the cliffs to reach it, with the entire experience costing nearly 400 yuan (about 55.7 U.S. dollars) per person. Similar adrenaline-fueled cafés have also emerged in provinces like Zhejiang and Fujian.

In south China’s Yunnan Province, one of the country’s key habitats for wild Asian elephants, guests at a café in Pu’er can sip freshly brewed coffee while watching elephants roam and forage in the distant forests.

Some cafés have chosen to tap into their agricultural roots. As China’s primary coffee-producing region, Yunnan offers visitors the chance to sip locally grown brews while exploring plantations and roasteries.

In Wanning, China’s island province of Hainan, coffee farm cafés let visitors roast their own beans, blending agritourism with beverage culture. And the leftover coffee grounds are turned into eco-friendly crafts like sand paintings, murals, and scented accessories.

This rural café boom is largely fueled by urbanites seeking weekend escapes into nature. In the first quarter of 2025, rural tourism in China welcomed 707 million visitors, an 8.9 percent year-on-year increase. Revenue reached 412 billion yuan, up 5.6 percent.

The café boom is also energizing local economies. In Anji County, Zhejiang, a rural region with under 600,000 residents, more than 300 countryside cafés have opened in recent years. Cafés here often operate on a community co-op model: villagers and collectives invest land or resources, café managing teams handle operations, and profits are shared through rent, wages, and dividends.

Deep Blue, one of Anji’s most popular cafés, returns nearly half of its coffee sales revenue to local shareholders. “You’ve got to admire how brilliantly resourceful these young people are,” said one villager.

The rise of rural cafés is also reversing urban migration. Many young entrepreneurs are returning to their hometowns, drawn by the potential of rural development. Among them is Wang Han, 27, from Xinzhai Village in Yunnan. After working in Shenzhen and Kunming, Wang returned in 2020 to open a café and an online coffee business. “There’s something worth coming back for. Now visitors from across China come to tour our coffee fields and taste our brews,” he said.

At Deep Blue, its 127 staff members have an average age of 25 and backgrounds ranging from medicine to shipbuilding, according to founder Cheng Shuoqin, who grew up in Anji and launched his business in 2022, along with six partners.

Cheng believes concerns about market saturation are premature. More well-educated young talent is still on their way to the countryside, he said. “The more young people return, the brighter the future of the countryside.”

MIL OSI China News –

July 30, 2025
MIL-OSI China: Tax system reform helps drive investment

Source: People’s Republic of China – State Council News

During the 14th Five-Year Plan period (2021-25), China’s tax system has opened wider to the world, actively drawing in foreign investment while helping domestic enterprises expand their global footprint, official data showed.

According to data released by the State Taxation Administration on Monday, the number of foreign-invested business entities with tax obligations in China increased by 12.7 percent from 2020 to the end of June 2025, showing growing confidence among global investors in China’s business environment.

In terms of inbound investment, over 630 billion yuan ($87.8 billion) in profits from foreign-funded enterprises have benefited from tax incentives for reinvestment during the 14th Five-Year Plan period, coupled with new policy allowing foreign investors to offset their reinvestment amounts against tax liabilities, further strengthening the appeal of the China market for global investors, said Wang Daoshu, deputy commissioner of the State Taxation Administration, during a news conference on Monday.

Inbound consumption has also seen a significant boost, a result of nationwide efforts to streamline tax refund procedures for overseas tourists. In particular, the “refund-upon-purchase” model rolled out across the country this year has improved tax refund efficiency by over 40 percent, said the administration.

One recent case involved a Dutch tourist in Chengdu, who purchased a product worth over 17,000 yuan at a tax refund store.

“Within just five minutes of applying for a tax refund, he received more than 1,500 yuan — which he immediately used for additional purchases,” the senior official said.

According to the administration, from January to June, the number of tax refund shops nationwide more than doubled to over 7,200. The number of international visitors receiving tax refunds surged by 186 percent year-on-year, while both the sales volume of tax-refunded goods and the total refund amount rose by about 94 percent, indicating the growing popularity of “travel in China “among foreign tourists.

In addition, to support Chinese enterprises in expanding globally, tax authorities have also continued to provide tailored tax guidance for overseas operations, helping outbound companies better understand international tax environments and enhance compliance, Wang said, adding that to date, a total of 110 country and region-specific tax guides have been published.

STA data on export tax rebates also showed that from 2021-24, China’s tax authorities processed export tax refunds with an average annual growth rate of 6.6 percent, and the growth accelerated to 7.1 percent on a comparable basis in the first half of the year.

A comprehensive set of tax and fee reduction policies has also been deployed to provide tangible benefits to businesses and households operating in the market.

From 2021 to the end of the first half of this year, the country delivered a cumulative total of 9.9 trillion yuan in tax and fee cuts. The figure is expected to reach 10.5 trillion yuan by the end of this year, according to the STA.

MIL OSI China News –

July 30, 2025

MIL-OSI: Coastal Financial Corporation Announces Second Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

EVERETT, Wash., July 29, 2025 (GLOBE NEWSWIRE) — Coastal Financial Corporation (Nasdaq: CCB) (the “Company”, “Coastal”, “we”, “our”, or “us”), the holding company for Coastal Community Bank (the “Bank”), through which it operates a community-focused bank segment (“community bank”) with an industry leading banking as a service (“BaaS”) segment (“CCBX”), today reported unaudited financial results for the quarter ended June 30, 2025, including net income of $11.0 million, or $0.71 per diluted common share, compared to $9.7 million, or $0.63 per diluted common share, for the three months ended March 31, 2025 and $11.6 million, or $0.84 per diluted common share, for the three months ended June 30, 2024.

Management Discussion of the Second Quarter Results

“Second quarter of 2025 saw a lower provision for credit losses as a result of an improvement in the performance of the CCBX portfolio and our focus on originating higher quality CCBX loans resulting in lower historical loss factors. Noninterest expenses were fairly flat compared to last quarter related to continued onboarding and implementation costs for partnerships and products within CCBX and investments in technology. We believe these investments are important to the long-term success and scalability of the Company,” stated CEO Eric Sprink. “We had another quarter of quality deposit growth of $122.3 million during the second quarter, and our CCBX program fee income, excluding nonrecurring revenue, increased 8.2% compared to the prior quarter.”

Key Points for Second Quarter and Our Go-Forward Strategy

CCBX Making Progress on Launching New Programs. As of June 30, 2025 we had two partners in testing, two in implementation/onboarding, five signed letters of intent (LOI) and we have an active pipeline of new partners along with new products with existing partners for the balance of 2025 and into 2026. Total BaaS program fee income was $6.8 million, excluding $504,000 in nonrecurring revenue, for the three months ended June 30, 2025, an increase of $512,000, or 8.2%, from the three months ended March 31, 2025. We continue to have contracts with our partners that fully indemnify us against fraud and 98.8% against credit risk as of June 30, 2025.
Continued Investments in Future Growth. Total noninterest expense of $72.8 million was up $843,000, or 1.2%, as compared to $72.0 million in the quarter ended March 31, 2025, mainly driven by higher data processing and software costs partially offset by lower legal and professional expenses. With the increase in new CCBX partners and the launch of products with existing partners in 2025, we expect that expenses will be predominantly incurred at the outset, emphasizing compliance and operational risk management. This will occur before the new programs or products start to produce revenue. As a result, we believe expense growth should moderate considerably in the second half of 2025, with new programs or products starting to produce revenue to offset the initial up-front expenses.
Favorable Trends On, and Off Balance Sheet. Average deposits were $3.93 billion, an increase of $221.6 million, or 6.0%, over the quarter ended March 31, 2025, driven primarily by growth in CCBX partner programs and the addition of a new deposit partner. During the second quarter of 2025, we sold $1.30 billion of loans, the majority of which were credit card receivables. We retain a portion of the fee income on sold credit card loans. As of June 30, 2025 there were 313,827 off balance sheet credit cards with fee earning potential, an increase of 76,803 compared to the quarter ended March 31, 2025 and an increase of 286,146 from June 30, 2024.

Second Quarter 2025 Financial Highlights

The tables below outline some of our key operating metrics.

	Three Months Ended
(Dollars in thousands, except share and per share data; unaudited)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Income Statement Data:
Interest and dividend income	$	107,797		$	104,907		$	102,448		$	105,165		$	97,422
Interest expense		31,060			28,845			30,071			32,892			31,250
Net interest income		76,737			76,062			72,377			72,273			66,172
Provision for credit losses		32,211			55,781			61,867			70,257			62,325
Net interest income after provision for credit losses		44,526			20,281			10,510			2,016			3,847
Noninterest income		42,693			63,477			74,100			78,790			69,138
Noninterest expense		72,832			71,989			67,411			64,424			57,964
Provision for income tax		3,359			2,039			3,832			2,926			3,425
Net income	$	11,028		$	9,730		$	13,367		$	13,456		$	11,596

	As of and for the Three Month Period
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Balance Sheet Data:
Cash and cash equivalents	$	719,759		$	624,302		$	452,513		$	484,026		$	487,245
Investment securities		45,577			46,991			47,321			48,620			49,213
Loans held for sale		60,474			42,132			20,600			7,565			—
Loans receivable		3,540,330			3,517,359			3,486,565			3,413,894			3,321,813
Allowance for credit losses		(164,794	)		(183,178	)		(176,994	)		(171,674	)		(148,878	)
Total assets		4,480,559			4,339,282			4,121,208			4,064,472			3,959,549
Interest bearing deposits		3,358,216			3,251,599			3,057,808			3,047,861			2,949,643
Noninterest bearing deposits		555,355			539,630			527,524			579,427			593,789
Core deposits ⁽¹⁾		3,441,624			3,321,772			3,123,434			3,190,869			3,528,339
Total deposits		3,913,571			3,791,229			3,585,332			3,627,288			3,543,432
Total borrowings		47,960			47,923			47,884			47,847			47,810
Total shareholders’ equity	$	461,709		$	449,917		$	438,704		$	331,930		$	316,693

Share and Per Share Data ⁽²⁾:
Earnings per share – basic	$	0.73		$	0.65		$	0.97		$	1.00		$	0.86
Earnings per share – diluted	$	0.71		$	0.63		$	0.94		$	0.97		$	0.84
Dividends per share		—			—			—			—			—
Book value per share ⁽³⁾	$	30.59		$	29.98		$	29.37		$	24.51		$	23.54
Tangible book value per share ⁽⁴⁾	$	30.59		$	29.98		$	29.37		$	24.51		$	23.54
Weighted avg outstanding shares – basic		15,033,296			14,962,507			13,828,605			13,447,066			13,412,667
Weighted avg outstanding shares – diluted		15,447,923			15,462,041			14,268,229			13,822,270			13,736,508
Shares outstanding at end of period		15,093,036			15,009,225			14,935,298			13,543,282			13,453,805
Stock options outstanding at end of period		126,654			163,932			186,354			198,370			286,119

See footnotes that follow the tables below

	As of and for the Three Month Period
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Credit Quality Data:
Nonperforming assets ⁽⁵⁾ to total assets		1.36	%		1.30	%		1.52	%		1.63	%		1.34	%
Nonperforming assets ⁽⁵⁾ to loans receivable and OREO		1.72	%		1.60	%		1.80	%		1.94	%		1.60	%
Nonperforming loans ⁽⁵⁾ to total loans receivable		1.72	%		1.60	%		1.80	%		1.94	%		1.60	%
Allowance for credit losses to nonperforming loans		270.7	%		325.0	%		282.5	%		258.7	%		279.9	%
Allowance for credit losses to total loans receivable		4.65	%		5.21	%		5.08	%		5.03	%		4.48	%
Gross charge-offs	$	53,780		$	53,686		$	61,585		$	53,305		$	55,207
Gross recoveries	$	4,467		$	5,486		$	5,223		$	4,516		$	2,254
Net charge-offs to average loans ⁽⁶⁾		5.54	%		5.57	%		6.56	%		5.60	%		6.54	%

Capital Ratios:
Company
Tier 1 leverage capital		10.39	%		10.67	%		10.78	%		8.40	%		8.31	%
Common equity Tier 1 risk-based capital		12.32	%		12.13	%		12.04	%		9.24	%		9.03	%
Tier 1 risk-based capital		12.41	%		12.22	%		12.14	%		9.34	%		9.13	%
Total risk-based capital		14.90	%		14.73	%		14.67	%		11.89	%		11.70	%
Bank
Tier 1 leverage capital		10.33	%		10.57	%		10.64	%		9.29	%		9.24	%
Common equity Tier 1 risk-based capital		12.36	%		12.12	%		11.99	%		10.34	%		10.15	%
Tier 1 risk-based capital		12.36	%		12.12	%		11.99	%		10.34	%		10.15	%
Total risk-based capital		13.65	%		13.42	%		13.28	%		11.63	%		11.44	%

⁽¹⁾Core deposits are defined as all deposits excluding brokered and time deposits.
⁽²⁾Share and per share amounts are based on total actual or average common shares outstanding, as applicable.
⁽³⁾We calculate book value per share as total shareholders’ equity at the end of the relevant period divided by the outstanding number of our common shares at the end of each period.
⁽⁴⁾Tangible book value per share is a non-GAAP financial measure. We calculate tangible book value per share as total shareholders’ equity at the end of the relevant period, less goodwill and other intangible assets, divided by the outstanding number of our common shares at the end of each period. The most directly comparable GAAP financial measure is book value per share. We had no goodwill or other intangible assets as of any of the dates indicated. As a result, tangible book value per share is the same as book value per share as of each of the dates indicated.
⁽⁵⁾Nonperforming assets and nonperforming loans include loans 90+ days past due and accruing interest.
⁽⁶⁾Annualized calculations.

Key Performance Ratios

Return on average assets (“ROA”) was 0.99% for the quarter ended June 30, 2025 compared to 0.93% and 1.21% for the quarters ended March 31, 2025 and June 30, 2024, respectively. ROA for the quarter ended June 30, 2025, increased 0.06% and decreased 0.22% compared to March 31, 2025 and June 30, 2024, respectively. Noninterest expenses were slightly higher for the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025 due to continued investments in growth, technology and risk management, partially offset by a decrease in legal and professional expenses. Noninterest expenses were higher than the quarter ended June 30, 2024 due primarily to an increase in salaries and employee benefits, data processing and software licenses and legal and professional expenses, all of which are related to the growth of Company and investments in technology and risk management.

Yield on earning assets and yield on loans receivable decreased 0.40% and 0.22%, respectively, for the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025, largely due to a decrease in CCBX loan yield. Lower rate capital call lines increased $66.2 million, or 49.6%, compared to the quarter ended March 31, 2025. These loans bear a lower rate of interest, but have less credit risk due to the way the loans are structured compared to other commercial loans. Average loans receivable as of June 30, 2025 increased $56.1 million compared to March 31, 2025 as net CCBX loans continue to grow, despite selling $1.30 billion in CCBX loans during the quarter ended June 30, 2025.

The quarter over quarter volatility in the efficiency ratio and noninterest income to average asset performance metrics was driven by a higher-quality CCBX loan-mix from a credit quality perspective, which effectively reduced the credit enhancement required within non-interest income due to lower net-charge off activity as a percent of total loans which lowered our provision expense. These items have a neutral impact to net income although impacted the quarter-to-quarter metrics due to lower reported noninterest income. Additionally, results for the three months ended June 30, 2025 also included a net $439,000 loss on equity securities due to the re-valuation of a privately held equity stake, which CCB reviews quarterly. Management doesn’t believe the write-down is indicative of longer-term concerns of the portfolio company’s health at this time.

The following table shows the Company’s key performance ratios for the periods indicated.

	Three Months Ended
(unaudited)	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024

Return on average assets ⁽¹⁾	0.99	%	0.93	%	1.30	%	1.34	%	1.21	%
Return on average equity ⁽¹⁾	9.72	%	8.91	%	14.90	%	16.67	%	15.22	%
Yield on earnings assets ⁽¹⁾	9.92	%	10.32	%	10.24	%	10.79	%	10.49	%
Yield on loans receivable ⁽¹⁾	11.11	%	11.33	%	11.12	%	11.44	%	11.22	%
Cost of funds ⁽¹⁾	3.13	%	3.11	%	3.24	%	3.62	%	3.60	%
Cost of deposits ⁽¹⁾	3.10	%	3.08	%	3.21	%	3.59	%	3.58	%
Net interest margin ⁽¹⁾	7.06	%	7.48	%	7.23	%	7.42	%	7.12	%
Noninterest expense to average assets ⁽¹⁾	6.52	%	6.87	%	6.54	%	6.42	%	6.05	%
Noninterest income to average assets ⁽¹⁾	3.82	%	6.06	%	7.19	%	7.85	%	7.22	%
Efficiency ratio	60.98	%	51.59	%	46.02	%	42.65	%	42.84	%
Loans receivable to deposits ⁽²⁾	92.01	%	93.89	%	97.82	%	94.33	%	93.75	%

⁽¹⁾Annualized calculations shown for quarterly periods presented.
⁽²⁾Includes loans held for sale.

Management Outlook; CEO Eric Sprink

“As we look to the latter half of 2025 and beyond, we expect to see additional new partner engagements, given that our CCBX pipeline remains strong with high-quality opportunities. We are committed to continuing to invest in our technology and risk management infrastructure to support our growth in the BaaS sector which is expected to produce future efficiencies, automation and cost reductions as we grow. The improvement in the performance of the CCBX portfolio and lower historical loss factors within the CCBX portfolio are positive indicators that our risk reduction and credit improvement efforts are proving effective, alongside the fraud and credit indemnifications provided by our partners. Additionally, we saw an increase of $512,000, or 8.2%, from the three months ended March 31, 2025 in BaaS program income, excluding nonrecurring revenue, namely in transaction and interchange income. We anticipate this growth to continue in future periods as our partner activities expand and grow.” said CEO Eric Sprink.

Coastal Financial Corporation Overview

The Company has one main subsidiary, the Bank, which consists of three segments: CCBX, the community bank and treasury & administration. The CCBX segment includes all of our BaaS activities, the community bank segment includes all community banking activities and the treasury & administration segment includes treasury management, overall administration and all other aspects of the Company.

CCBX Performance Update

Our CCBX segment continues to evolve, and we have 29 relationships, at varying stages, including two partners in testing, two in implementation/onboarding, and five signed LOI as of June 30, 2025. We continue to refine the criteria for CCBX partnerships, exploring relationships with larger and more established partners, with experienced management teams, existing customer bases and strong financial positions. We also will consider promising medium and smaller sized partners that align with our approach and terms including financial wherewithal and will continue to exit relationships where it makes sense for us to do so.

While we explore relationships with new partners we continue to expand our product offerings with existing CCBX partners. As we become more proficient in the BaaS space we aim to cultivate new relationships that align with our long-term goals. We believe that a strategy of adding new partnerships and launching new products with existing partners allows us to expand and grow our customer base with a modest increase in regulatory risk given our operational history with them. Increases in partner activity/transaction counts is positively impacting noninterest income and we expect this trend to continue as current products grow and new products are introduced. We plan to continue selling loans as part of our strategy to balance partner and lending limits, and manage the loan portfolio and credit quality. We retain a portion of the fee income for our role in processing transactions on sold credit card loans, and will continue this strategy to provide an on-going revenue source with no on balance sheet risk or capital requirement.

As we build our deposit base, we will be able to sweep deposits off and on the balance sheet as needed. This deposit sweep capability allows us to better manage liquidity and deposit programs. At June 30, 2025 we swept off $478.7 million in deposits for FDIC insurance and liquidity purposes. Robinhood has entered the production testing phase for its suite of deposit products, signaling continued momentum in our strategic partnership pipeline. Dave finalized production testing in Q2 and is poised to initiate its beta launch, expanding our footprint in digital banking solutions. The introduction of theses products are expected to diversify and grow deposits.

The following table illustrates the activity and evolution in CCBX relationships for the periods presented.

	As of
(unaudited)	June 30, 2025	March 31, 2025	June 30, 2024
Active	20	19	19
Friends and family / testing	2	2	1
Implementation / onboarding	2	3	1
Signed letters of intent	5	1	0
Total CCBX relationships	29	25	21

CCBX loans increased $29.5 million, or 1.8%, to $1.68 billion despite selling $1.30 billion in loans during the three months ended June 30, 2025. In accordance with the program agreement for one partner, we are responsible for losses on 5% of that portfolio. At June 30, 2025 the portion of that portfolio for which we are responsible represented $19.8 million in loans.

The following table details the CCBX loan portfolio:

CCBX	As of
	June 30, 2025					March 31, 2025					June 30, 2024
(dollars in thousands; unaudited)	Balance			% to Total		Balance			% to Total		Balance			% to Total
Commercial and industrial loans:
Capital call lines	$	199,675		11.9	%	$	133,466		8.1	%	$	109,133		7.7	%
All other commercial & industrial loans		26,142		1.6			29,702		1.8			41,757		3.0
Real estate loans:
Residential real estate loans		234,786		14.0			285,355		17.3			287,950		20.4
Consumer and other loans:
Credit cards		533,925		31.8			532,775		32.2			549,241		39.0
Other consumer and other loans		686,321		40.7			670,026		40.6			422,136		29.9
Gross CCBX loans receivable		1,680,849		100.0	%		1,651,324		100.0	%		1,410,217		100.0	%
Net deferred origination (fees) costs		(569	)				(498	)				(438	)
Loans receivable	$	1,680,280				$	1,650,826				$	1,409,779
Loan Yield – CCBX ⁽¹⁾⁽²⁾		16.22	%				16.88	%				17.75	%

⁽¹⁾CCBX yield does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements and originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
⁽²⁾Loan yield is annualized for the three months ended for each period presented and includes loans held for sale and nonaccrual loans.

The increase in CCBX loans in the quarter ended June 30, 2025, includes an increase of $66.2 million, or 49.6%, in capital call lines as a result of normal balance fluctuations and business activities, a decrease of $50.6 million, or 17.7%, in residential real estate loans and an increase of $17.4 million or 1.5%, in other consumer and other loans. We continue to monitor and manage the CCBX loan portfolio, and sold $1.30 billion in CCBX loans during the quarter ended June 30, 2025 compared to sales of $744.6 million in the quarter ended March 31, 2025. We continue to reposition ourselves by managing CCBX credit and concentration levels in an effort to optimize our loan portfolio earnings and generate off balance sheet fee income. CCBX loan yield decreased 0.67% for the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025 as a result of an increase in lower rate capital call lines and overall mix of loans compared to the quarter ended March 31, 2025, these loans bear a lower rate of interest, but have less credit risk due to the way the loans are structured compared to other commercial loans.

The following chart shows the growth in credit card accounts that generate fee income. This includes accounts with balances, which are included in our loan totals, and accounts that have been sold and have no corresponding balance in our loan totals, and that generate fee income.

The following chart shows the growth in active CCBX debit cards which are sources of interchange income.

The following table details the CCBX deposit portfolio:

CCBX	As of
	June 30, 2025					March 31, 2025					June 30, 2024
(dollars in thousands; unaudited)	Balance			% to Total		Balance			% to Total		Balance			% to Total
Demand, noninterest bearing	$	60,448		2.6	%	$	58,416		2.6	%	$	62,234		3.0	%
Interest bearing demand and money market		2,231,159		94.5			2,145,608		94.6			1,989,105		96.7
Savings		51,523		2.2			16,625		0.7			5,150		0.3
Total core deposits		2,343,130		99.3			2,220,649		97.9			2,056,489		100.0
Other deposits		17,013		0.7			46,359		2.1			—		—
Total CCBX deposits	$	2,360,143		100.0	%	$	2,267,008		100.0	%	$	2,056,489		100.0	%
Cost of deposits ⁽¹⁾		3.96	%				4.01	%				4.92	%

⁽¹⁾Cost of deposits is annualized for the three months ended for each period presented.

CCBX deposits increased $93.1 million, or 4.1%, in the three months ended June 30, 2025 to $2.36 billion as a result of growth and normal balance fluctuations. This excludes the $478.7 million in CCBX deposits that were transferred off balance sheet for increased Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and sweep purposes, compared to $406.3 million for the quarter ended March 31, 2025. Amounts in excess of FDIC insurance coverage are transferred, using a third-party facilitator/vendor sweep product, to participating financial institutions.

Community Bank Performance Update

In the quarter ended June 30, 2025, the community bank saw net loans decrease $6.5 million, or 0.3%, to $1.86 billion, as a result of normal balance fluctuations.

The following table details the Community Bank loan portfolio:

Community Bank	As of
	June 30, 2025					March 31, 2025					June 30, 2024
(dollars in thousands; unaudited)	Balance			% to Total		Balance			% to Total		Balance			% to Total
Commercial and industrial loans	$	149,926		8.0	%	$	149,104		8.0	%	$	144,436		7.5	%
Real estate loans:
Construction, land and land development loans		194,150		10.4			166,551		8.9			173,064		9.0
Residential real estate loans		198,844		10.7			202,920		10.8			229,639		12.0
Commercial real estate loans		1,310,882		70.2			1,340,647		71.6			1,357,979		70.8
Consumer and other loans:
Other consumer and other loans		12,230		0.7			13,326		0.7			14,220		0.7
Gross Community Bank loans receivable		1,866,032		100.0	%		1,872,548		100.0	%		1,919,338		100.0	%
Net deferred origination fees		(5,982	)				(6,015	)				(7,304	)
Loans receivable	$	1,860,050				$	1,866,533				$	1,912,034
Loan Yield⁽¹⁾		6.53	%				6.53	%				6.52	%

⁽¹⁾Loan yield is annualized for the three months ended for each period presented and includes loans held for sale and nonaccrual loans.

Community bank loan categories decreased $29.8 million in commercial real estate loans and $1.1 million in consumer and other loans, partially offset by an increase of $27.6 million in construction, land and land development loans and $822,000 in commercial and industrial loans, during the quarter ended June 30, 2025.

The following table details the community bank deposit portfolio:

Community Bank	As of
	June 30, 2025					March 31, 2025					June 30, 2024
(dollars in thousands; unaudited)	Balance			% to Total		Balance			% to Total		Balance			% to Total
Demand, noninterest bearing	$	494,907		31.9	%	$	481,214		31.5	%	$	531,555		35.7	%
Interest bearing demand and money market		545,655		35.1			560,416		36.8			876,668		59.0
Savings		57,933		3.7			59,493		3.9			63,627		4.3
Total core deposits		1,098,495		70.7			1,101,123		72.2			1,471,850		99.0
Other deposits		440,975		28.4			407,391		26.7			1		0.0
Time deposits less than $100,000		5,299		0.3			5,585		0.4			6,741		0.5
Time deposits $100,000 and over		8,659		0.6			10,122		0.7			8,351		0.5
Total Community Bank deposits	$	1,553,428		100.0	%	$	1,524,221		100.0	%	$	1,486,943		100.0	%
Cost of deposits⁽¹⁾		1.77	%				1.76	%				1.77	%

⁽¹⁾Cost of deposits is annualized for the three months ended for each period presented.

Community bank deposits increased $29.2 million, or 1.9%, during the three months ended June 30, 2025 to $1.55 billion. The community bank segment includes noninterest bearing deposits of $494.9 million, or 31.9%, of total community bank deposits, resulting in a cost of deposits of 1.77%, which compared to 1.76% for the quarter ended March 31, 2025.

Net Interest Income and Margin Discussion

Net interest income was $76.7 million for the quarter ended June 30, 2025, an increase of $675,000, or 0.9%, from $76.1 million for the quarter ended March 31, 2025, and an increase of $10.6 million, or 16.0%, from $66.2 million for the quarter ended June 30, 2024. Net interest income compared to March 31, 2025, was higher due to an increase in average loans receivable. The increase in net interest income compared to June 30, 2024 was largely related to growth in loans receivable and a reduction in cost of funds as a result of lower interest rates.

Net interest margin was 7.06% for the three months ended June 30, 2025, compared to 7.48% for the three months ended March 31, 2025, due primarily to a decrease in loan yield. Net interest margin, net of BaaS loan expense, (a reconciliation of the non-GAAP measures are set forth in the Non-GAAP Financial Measures section of this earnings release) was 4.07% for the three months ended June 30, 2025, compared to 4.28% for the three months ended March 31, 2025. Net interest margin was 7.12% for the three months ended June 30, 2024. The decrease in net interest margin for the three months ended June 30, 2025 compared to the three months ended June 30, 2024 was largely due to a decrease in loan yield, partially offset by lower cost of funds. The $66.2 million of growth in lower rate capital call lines and overall mix of loans contributed to the decrease in net interest margin for the three months ended June 30, 2025. Capital call lines grew 49.6% quarter-over-quarter to $199.7 million, or 11.9% of total CCBX loans versus 8.1% in the prior quarter. These loans carry a lower interest rate, but also lower credit costs.

Interest and fees on loans receivable increased $720,000, or 0.7%, to $98.9 million for the three months ended June 30, 2025, compared to $98.1 million for the three months ended March 31, 2025, as a result of loan growth. Interest and fees on loans receivable increased $8.0 million, or 8.8%, compared to $90.9 million for the three months ended June 30, 2024, due to an increase in outstanding balances. Net interest margin, net of BaaS loan expense (a reconciliation of the non-GAAP measures are set forth in the Non-GAAP Financial Measures section of this earnings release) decreased 0.21% for the three months ended June 30, 2025, compared to the three months ended March 31, 2025 and increased 0.07% compared the three months ended June 30, 2024.

The following tables illustrate how net interest margin and loan yield is affected by BaaS loan expense:

Consolidated	As of and for the Three Months Ended
(dollars in thousands; unaudited)	June 30 2025			March 31 2025			June 30 2024
Net interest margin, net of BaaS loan expense:
Net interest margin ⁽¹⁾		7.06	%		7.48	%		7.12	%
Earning assets		4,356,591			4,124,065			3,736,579
Net interest income (GAAP)		76,737			76,062			66,172
Less: BaaS loan expense		(32,483	)		(32,507	)		(29,011	)
Net interest income, net of BaaS loan expense⁽²⁾	$	44,254		$	43,555		$	37,161
Net interest margin, net of BaaS loan expense ⁽¹⁾⁽²⁾		4.07	%		4.28	%		4.00	%
Loan income net of BaaS loan expense divided by average loans:
Loan yield (GAAP)⁽¹⁾		11.11	%		11.33	%		11.22	%
Total average loans receivable	$	3,567,823		$	3,511,724		$	3,258,042
Interest and earned fee income on loans (GAAP)		98,867			98,147			90,879
BaaS loan expense		(32,483	)		(32,507	)		(29,011	)
Net loan income⁽²⁾	$	66,384		$	65,640		$	61,868
Loan income, net of BaaS loan expense, divided by average loans ⁽¹⁾⁽²⁾		7.46	%		7.58	%		7.64	%

⁽¹⁾ Annualized calculations shown for periods presented.
⁽²⁾ A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.

Average investment securities decreased $900,000 to $46.3 million compared to the three months ended March 31, 2025 and decreased $3.5 million compared to the three months ended June 30, 2024 as a result of principal paydowns.

Cost of funds was 3.13% for the quarter ended June 30, 2025, an increase of 2 basis points from the quarter ended March 31, 2025 and a decrease of 47 basis points from the quarter ended June 30, 2024. Cost of deposits for the quarter ended June 30, 2025 was 3.10%, compared to 3.08% for the quarter ended March 31, 2025, and 3.58% for the quarter ended June 30, 2024. The decreased cost of funds and deposits compared to June 30, 2024 were largely due to the reductions in the Fed funds rate in 2024.

The following table summarizes the average yield on loans receivable and cost of deposits:

	For the Three Months Ended
	June 30, 2025				March 31, 2025				June 30, 2024
	Yield on Loans ⁽²⁾		Cost of Deposits ⁽²⁾		Yield on Loans ⁽²⁾		Cost of Deposits ⁽²⁾		Yield on Loans ⁽²⁾		Cost of Deposits ⁽²⁾
Community Bank	6.53	%	1.77	%	6.53	%	1.76	%	6.52	%	1.77	%
CCBX ⁽¹⁾	16.22	%	3.96	%	16.88	%	4.01	%	17.75	%	4.92	%
Consolidated	11.11	%	3.10	%	11.33	%	3.08	%	11.22	%	3.58	%
⁽¹⁾CCBX yield on loans does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit and fraud enhancements and originating & servicing CCBX loans. To determine Net BaaS loan income earned from CCBX loan relationships, the Company takes BaaS loan interest income and deducts BaaS loan expense to arrive at Net BaaS loan income which can be compared to interest income on the Company’s community bank loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
⁽²⁾Annualized calculations for periods presented.

The following table illustrates how BaaS loan interest income is affected by BaaS loan expense resulting in net BaaS loan income and the associated yield:

	For the Three Months Ended
	June 30, 2025				March 31, 2025				June 30, 2024
(dollars in thousands, unaudited)	Income / Expense		Income / expense divided by average CCBX loans ⁽²⁾		Income / Expense		Income / expense divided by average CCBX loans⁽²⁾		Income / Expense		Income / expense divided by average CCBX loans ⁽²⁾
BaaS loan interest income	$	68,264	16.22	%	$	67,855	16.88	%	$	60,138	17.75	%
Less: BaaS loan expense		32,483	7.72	%		32,507	8.09	%		29,011	8.56	%
Net BaaS loan income ⁽¹⁾	$	35,781	8.50	%	$	35,348	8.79	%	$	31,127	9.19	%
Average BaaS Loans⁽³⁾	$	1,688,492			$	1,630,088			$	1,362,343

⁽¹⁾ A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.
⁽²⁾ Annualized calculations shown for the periods presented.
⁽³⁾ Includes loans held for sale.

Noninterest Income Discussion

Noninterest income was $42.7 million for the three months ended June 30, 2025, a decrease of $20.8 million from $63.5 million for the three months ended March 31, 2025, and a decrease of $26.4 million from $69.1 million for the three months ended June 30, 2024. The decrease in noninterest income for the quarter ended June 30, 2025 as compared to the quarter ended March 31, 2025 was primarily due to a decrease of $20.6 million in total BaaS income. The $20.6 million decrease in total BaaS income included a $22.4 million decrease in BaaS credit enhancements related to the decrease in provision for credit losses due to an improvement in the performance of the CCBX portfolio and our focus on originating higher quality CCBX loans resulting in lower historical loss factors, which had a favorable impact on the provision for credit losses, partially offset by an increase of $1.0 million in BaaS program income, which includes $504,000 in nonrecurring revenue, and a $811,000 increase in BaaS fraud enhancements. Results for the three months ended June 30, 2025 also included a net $439,000 loss on equity securities due to the re-valuation of a privately held equity stake, which we review quarterly. Management doesn’t believe the write-down is indicative of longer-term concerns of the portfolio company’s health at this time. The $1.0 million increase in BaaS program income is largely due to an increase in transaction and interchange fees and includes $504,000 in nonrecurring revenue (see “Appendix B” for more information on the accounting for BaaS allowance for credit losses and credit and fraud enhancements).

The $26.4 million decrease in noninterest income over the quarter ended June 30, 2024 was primarily due to a $28.5 million decrease in BaaS credit and fraud enhancements due to improvement in the performance of the CCBX loan portfolio, partially offset by an increase of $2.0 million in BaaS program income, which includes $504,000 in nonrecurring revenue.

Noninterest Expense Discussion

Total noninterest expense increased $843,000 to $72.8 million for the three months ended June 30, 2025, compared to $72.0 million for the three months ended March 31, 2025, and increased $14.9 million from $58.0 million for the three months ended June 30, 2024. The $843,000 increase in noninterest expense for the quarter ended June 30, 2025, as compared to the quarter ended March 31, 2025, was primarily due to a $659,000 increase in data processing and software licenses, an $811,000 increase in BaaS fraud expense and a $74,000 increase in legal and professional fees, partially offset by a $414,000 decrease in other expenses, $119,000 decrease in occupancy expense, $81,000 decrease in salaries and employee benefits and a $24,000 decrease in BaaS loan expense. The increase in data processing and software licenses were part of our continued investments in growth, technology and risk management. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements, and originating & servicing CCBX loans. BaaS fraud expense represents non-credit fraud losses on partner’s customer loan and deposit accounts. A portion of this expense is realized during the quarter in which the loss occurs, and a portion is estimated based on historical or other information from our partners.

The increase in noninterest expenses for the quarter ended June 30, 2025 compared to the quarter ended June 30, 2024 was largely due to a $4.4 million increase in salary and employee benefits, a $1.6 million increase in data processing and software licenses due to enhancements and investments in technology, and a $2.7 million increase in legal and professional expenses, all of which are related to the growth of Company and investments in technology and risk management. Also contributing to the the increase was a $3.5 million increase in BaaS loan expense and a $1.0 million increase in BaaS fraud expense.

Certain noninterest expenses are reimbursed by our CCBX partners. In accordance with GAAP we recognize all expenses in noninterest expense and the reimbursement of expenses from our CCBX partner in noninterest income. The following table reflects the portion of noninterest expenses that are reimbursed by partners to assist in the understanding of how the increases in noninterest expense are related to expenses incurred and reimbursed by CCBX partners:

	Three Months Ended
	June 30,		March 31,		June 30,
(dollars in thousands; unaudited)		2025		2025		2024
Total noninterest expense (GAAP)	$	72,832	$	71,989	$	57,964
Less: BaaS loan expense		32,483		32,507		29,011
Less: BaaS fraud expense		2,804		1,993		1,784
Less: Reimbursement of expenses (BaaS)		646		1,026		857
Noninterest expense, net of BaaS loan expense, BaaS fraud expense and reimbursement of expenses (BaaS) ⁽¹⁾	$	36,899	$	36,463	$	26,312

⁽¹⁾ A reconciliation of the non-GAAP measures are set forth at the end of this earnings release.

Provision for Income Taxes

The provision for income taxes was $3.4 million for the three months ended June 30, 2025, $2.0 million for the three months ended March 31, 2025 and $3.4 million for the second quarter of 2024. The income tax provision as a percentage was higher for the three months ended June 30, 2025 compared to the quarter ended March 31, 2025 as a result of the higher net income and increase in state income tax rates, partially offset by the deductibility of certain equity awards, and was somewhat flat in dollar amount compared to the quarter ended June 30, 2024, but higher in tax rate.

The Company is subject to various state taxes that are assessed as CCBX activities and employees expand into other states, which has increased the overall tax rate used in calculating the provision for income taxes in the current and future periods. The Company uses a federal statutory tax rate of 21.0% as a basis for calculating provision for federal income taxes and 5.14% for calculating the provision for state income taxes. The state rate increased in the quarter ended June 30, 2025 primarily as a result of a change in California’s tax laws.

Financial Condition Overview

Total assets increased $141.3 million, or 3.3%, to $4.48 billion at June 30, 2025 compared to $4.34 billion at March 31, 2025. The increase is primarily comprised of a $95.5 million increase in cash and interest bearing deposits with other banks, a $23.0 million increase in loans receivable, and an $18.3 million increase in loans held for sale. Total loans receivable increased to $3.54 billion at June 30, 2025, from $3.52 billion at March 31, 2025.

As of June 30, 2025, in addition to the $719.8 million in cash on hand the Company had the capacity to borrow up to a total of $642.7 million from the Federal Reserve Bank discount window and Federal Home Loan Bank, plus an additional $50.0 million from a correspondent bank. There were no borrowings outstanding on these lines as of June 30, 2025.

The Company, on a stand alone basis, had a cash balance of $43.9 million as of June 30, 2025, a portion of which is retained for general operating purposes, including debt repayment, for funding $1.6 million in commitments to bank technology investment funds, with the remaining cash available to be contributed to the Bank as capital.

Uninsured deposits were $579.9 million as of June 30, 2025, compared to $558.8 million as of March 31, 2025.

Total shareholders’ equity as of June 30, 2025 increased $11.8 million since March 31, 2025. The increase in shareholders’ equity was primarily comprised of $11.0 million in net earnings combined with an increase of $764,000 in common stock outstanding as a result of equity awards exercised or vested during the three months ended June 30, 2025.

The Company and the Bank remained well capitalized at June 30, 2025, as summarized in the following table.

(unaudited)	Coastal Community Bank		Coastal Financial Corporation		Minimum Well Capitalized Ratios under Prompt Corrective Action ⁽¹⁾
Tier 1 Leverage Capital (to average assets)	10.33	%	10.39	%	5.00	%
Common Equity Tier 1 Capital (to risk-weighted assets)	12.36	%	12.32	%	6.50	%
Tier 1 Capital (to risk-weighted assets)	12.36	%	12.41	%	8.00	%
Total Capital (to risk-weighted assets)	13.65	%	14.90	%	10.00	%

⁽¹⁾ Presents the minimum capital ratios for an insured depository institution, such as the Bank, to be considered well capitalized under the Prompt Corrective Action framework. The minimum requirements for the Company to be considered well capitalized under Regulation Y include to maintain, on a consolidated basis, a total risk-based capital ratio of 10.0 percent or greater and a tier 1 risk-based capital ratio of 6.0 percent or greater.

Asset Quality

The allowance for credit losses was $164.8 million and 4.65% of loans receivable at June 30, 2025 compared to $183.2 million and 5.21% at March 31, 2025 and $148.9 million and 4.48% at June 30, 2024. The allowance for credit loss allocated to the CCBX portfolio was $145.9 million and 8.68% of CCBX loans receivable at June 30, 2025, with $18.9 million of allowance for credit loss allocated to the community bank or 1.02% of total community bank loans receivable.

The following table details the allocation of the allowance for credit loss as of the period indicated:

	As of June 30, 2025									As of March 31, 2025									As of June 30, 2024
(dollars in thousands; unaudited)	Community Bank			CCBX			Total			Community Bank			CCBX			Total			Community Bank			CCBX			Total
Loans receivable	$	1,860,050		$	1,680,280		$	3,540,330		$	1,866,533		$	1,650,826		$	3,517,359		$	1,912,034		$	1,409,779		$	3,321,813
Allowance for credit losses		(18,936	)		(145,858	)		(164,794	)		(18,992	)		(164,186	)		(183,178	)		(21,046	)		(127,832	)		(148,878	)
Allowance for credit losses to total loans receivable		1.02	%		8.68	%		4.65	%		1.02	%		9.95	%		5.21	%		1.10	%		9.07	%		4.48	%

Net charge-offs totaled $49.3 million for the quarter ended June 30, 2025, compared to $48.2 million for the quarter ended March 31, 2025 and $53.0 million for the quarter ended June 30, 2024. Net charge-offs as a percent of average loans decreased to 5.54% for the quarter ended June 30, 2025 compared to 5.57% for the quarter ended March 31, 2025. CCBX partner agreements provide for a credit enhancement that covers the net-charge-offs on CCBX loans and negative deposit accounts by indemnifying or reimbursing incurred losses, except in accordance with the program agreement for one partner where the Company was responsible for credit losses on approximately 5% of a $296.3 million loan portfolio. At June 30, 2025, our portion of this portfolio represented $19.8 million in loans. Net charge-offs for this $19.8 million in loans were $1.3 million for the three months ended June 30, 2025, $1.1 million for the three months ended March 31, 2025 and $1.3 million for the three months ended June 30, 2024.

The following table details net charge-offs for the community bank and CCBX for the period indicated:

	Three Months Ended
	June 30, 2025									March 31, 2025									June 30, 2024
(dollars in thousands; unaudited)	Community Bank			CCBX			Total			Community Bank			CCBX			Total			Community Bank			CCBX			Total
Gross charge-offs	$	11		$	53,769		$	53,780		$	4		$	53,682		$	53,686		$	2		$	55,205		$	55,207
Gross recoveries		(2	)		(4,465	)		(4,467	)		(7	)		(5,479	)		(5,486	)		(4	)		(2,250	)		(2,254	)
Net charge-offs	$	9		$	49,304		$	49,313		$	(3	)	$	48,203		$	48,200		$	(2	)	$	52,955		$	52,953
Net charge-offs to average loans ⁽¹⁾		0.00	%		11.71	%		5.54	%		0.00	%		11.99	%		5.57	%		0.00	%		15.63	%		6.54	%

⁽¹⁾ Annualized calculations shown for periods presented.

During the quarter ended June 30, 2025, a $31.0 million provision for credit losses was recorded for CCBX partner loans, compared to the $54.3 million provision for credit losses was recorded for CCBX partner loans for the quarter ended March 31, 2025. The provision was based on management’s analysis, bringing the CCBX allowance for credit losses to $145.9 million at June 30, 2025 compared to $164.2 million at March 31, 2025. The decrease in the allowance is due to an improvement in the performance of the CCBX portfolio and our focus on originating higher quality CCBX loans resulting in lower historical loss factors. As we continue to originate higher quality loans, these become a greater proportion of the CCBX portfolio, resulting in an improvement in expected losses and a reduced allowance. In general, CCBX loans have a higher level of expected losses than our community bank loans, which is reflected in the factors for the allowance for credit losses. Agreements with our CCBX partners provide for a credit enhancement which protects the Bank by indemnifying or reimbursing incurred losses.

In accordance with accounting guidance, we estimate and record a provision for expected losses for these CCBX loans and reclassified negative deposit accounts. When the provision for CCBX credit losses and provision for unfunded commitments is recorded, a credit enhancement asset is also recorded on the balance sheet through noninterest income (BaaS credit enhancements). Expected losses are recorded in the allowance for credit losses. The credit enhancement asset is relieved when credit enhancement recoveries are received from the CCBX partner. If our partner is unable to fulfill their contracted obligations then the Bank could be exposed to additional credit losses. Management regularly evaluates and manages this counterparty risk with our CCBX partners.

The factors used in management’s analysis for community bank credit losses indicated that a provision recapture of $47,000 was needed for the quarter ended June 30, 2025 compared to a provision of $65,000 and a provision recapture of $341,000 for the quarters ended March 31, 2025 and June 30, 2024, respectively. The provision recapture in the current period was due to the lower outstanding balance in the community bank loan portfolio.

The following table details the provision expense/(recapture) for the community bank and CCBX for the period indicated:

	Three Months Ended
(dollars in thousands; unaudited)	June 30, 2025			March 31, 2025		June 30, 2024
Community bank	$	(47	)	$	65	$	(341	)
CCBX		30,976			54,319		62,231
Total provision expense	$	30,929		$	54,384	$	61,890

A provision for unfunded commitments of $1.5 million was recorded for the quarter ended June 30, 2025 as a result of a change in the loan mix of available balance. A provision for accrued interest receivable of $182,000 was recorded for the quarter ended June 30, 2025 on CCBX loans.

At June 30, 2025, our nonperforming assets were $60.9 million, or 1.36%, of total assets, compared to $56.4 million, or 1.30%, of total assets, at March 31, 2025, and $53.2 million, or 1.34%, of total assets, at June 30, 2024. These ratios are impacted by nonperforming CCBX loans that are covered by CCBX partner credit enhancements. As of June 30, 2025, $55.3 million of the $57.0 million in nonperforming CCBX loans were covered by CCBX partner credit enhancements described above. Additionally, some CCBX partners have a collection practice that places certain loans on nonaccrual status to improve collectability. $20.1 million of these loans are less than 90 days past due as of June 30, 2025.

Nonperforming assets increased $4.5 million during the quarter ended June 30, 2025, compared to the quarter ended March 31, 2025. Community bank nonperforming loans increased $3.7 million from March 31, 2025 to $3.8 million as of June 30, 2025, and CCBX nonperforming loans increased $847,000 to $57.0 million from March 31, 2025. The increase in CCBX nonperforming loans is due to an increase of $4.2 million in nonaccrual loans from March 31, 2025 to $24.4 million, partially offset by a $3.4 million decrease in CCBX loans that are past due 90 days or more and still accruing interest. As of June 30, 2025, $20.1 million in loans are under 90 days past due as a result of CCBX partners placing them on nonaccrual status to improve collectability. As a result of the type of loans (primarily consumer loans) originated through our CCBX partners we would typically anticipate that balances 90 days past due or more and still accruing will generally increase as those loan portfolios grow, therefore we believe the decrease in these past due CCBX loans is a positive performance indicator for the CCBX portfolio. Installment/closed-end and revolving/open-end consumer loans originated through CCBX lending partners will continue to accrue interest until 120 and 180 days past due, respectively and are reported as substandard, 90 days or more days past due and still accruing. There were no repossessed assets or other real estate owned at June 30, 2025. Our nonperforming loans to loans receivable ratio was 1.72% at June 30, 2025, compared to 1.60% at March 31, 2025, and 1.60% at June 30, 2024.

For the quarter ended June 30, 2025, there were $9,000 in community bank net charge-offs and $49.3 million in net charge-offs were recorded on CCBX loans. These CCBX loans have a higher level of expected losses than our community bank loans, which is reflected in the factors for the allowance for credit losses.

The following table details the Company’s nonperforming assets for the periods indicated.

Consolidated	As of
(dollars in thousands; unaudited)	June 30, 2025			March 31, 2025			June 30, 2024
Nonaccrual loans:
Commercial and industrial loans	$	2,333		$	381		$	—
Real estate loans:
Construction, land and land development		1,697			—			—
Residential real estate		—			—			213
Commercial real estate		—			—			7,731
Consumer and other loans:
Credit cards		20,140			13,602			—
Other consumer and other loans		4,063			6,376			—
Total nonaccrual loans		28,233			20,359			7,944
Accruing loans past due 90 days or more:
Commercial & industrial loans		926			782			1,278
Real estate loans:
Residential real estate loans		1,817			2,407			2,722
Consumer and other loans:
Credit cards		23,116			27,187			36,465
Other consumer and other loans		6,775			5,632			4,779
Total accruing loans past due 90 days or more		32,634			36,008			45,244
Total nonperforming loans		60,867			56,367			53,188
Real estate owned		—			—			—
Repossessed assets		—			—			—
Total nonperforming assets	$	60,867		$	56,367		$	53,188
Total nonaccrual loans to loans receivable		0.80	%		0.58	%		0.24	%
Total nonperforming loans to loans receivable		1.72	%		1.60	%		1.60	%
Total nonperforming assets to total assets		1.36	%		1.30	%		1.34	%

The following tables detail the CCBX and community bank nonperforming assets which are included in the total nonperforming assets table above.

CCBX	As of
(dollars in thousands; unaudited)	June 30, 2025			March 31, 2025			June 30, 2024
Nonaccrual loans:
Commercial and industrial loans:
All other commercial & industrial loans	$	188		$	192		$	—
Consumer and other loans:
Credit cards		20,140			13,602			—
Other consumer and other loans		4,063			6,376			—
Total nonaccrual loans		24,391			20,170			—
Accruing loans past due 90 days or more:
Commercial & industrial loans		926			782			1,278
Real estate loans:
Residential real estate loans		1,817			2,407			2,722
Consumer and other loans:
Credit cards		23,116			27,187			36,465
Other consumer and other loans		6,775			5,632			4,779
Total accruing loans past due 90 days or more		32,634			36,008			45,244
Total nonperforming loans		57,025			56,178			45,244
Other real estate owned		—			—			—
Repossessed assets		—			—			—
Total nonperforming assets	$	57,025		$	56,178		$	45,244
Total CCBX nonperforming assets to total consolidated assets		1.27	%		1.29	%		1.14	%

Community Bank	As of
(dollars in thousands; unaudited)	June 30, 2025			March 31, 2025			June 30, 2024
Nonaccrual loans:
Commercial and industrial loans	$	2,145		$	189		$	—
Real estate:
Construction, land and land development		1,697			—			—
Residential real estate		—			—			213
Commercial real estate		—			—			7,731
Total nonaccrual loans		3,842			189			7,944
Accruing loans past due 90 days or more:
Total accruing loans past due 90 days or more		—			—			—
Total nonperforming loans		3,842			189			7,944
Other real estate owned		—			—			—
Repossessed assets		—			—			—
Total nonperforming assets	$	3,842		$	189		$	7,944
Total community bank nonperforming assets to total consolidated assets		0.09	%		—	%		0.20	%

About Coastal Financial

Coastal Financial Corporation (Nasdaq: CCB) (the “Company”), is an Everett, Washington based bank holding company whose wholly owned subsidiaries are Coastal Community Bank (“Bank”) and Arlington Olympic LLC. The $4.48 billion Bank provides service through 14 branches in Snohomish, Island, and King Counties, the Internet and its mobile banking application. The Bank provides banking as a service to digital financial service providers, companies and brands that want to provide financial services to their customers through the Bank’s CCBX segment. To learn more about the Company visit www.coastalbank.com.

CCB-ER

Contact

Eric Sprink, Chief Executive Officer, (425) 357-3659
Joel Edwards, Executive Vice President & Chief Financial Officer, (425) 357-3687

Forward-Looking Statements

This earnings release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of or reference to forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements as a result of risks, uncertainties and assumptions that are difficult to predict. Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, the risk that changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs, may adversely impact our business, financial condition, and results of operations and those other risks and uncertainties discussed under “Risk Factors” in our Annual Report on Form 10-K for the most recent period filed and in any of our subsequent filings with the Securities and Exchange Commission.

If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. You are cautioned not to place undue reliance on forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update or revise any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law.

COASTAL FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Dollars in thousands; unaudited)

ASSETS
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Cash and due from banks	$	29,546		$	43,467		$	36,533		$	45,327		$	59,995
Interest earning deposits with other banks		690,213			580,835			415,980			438,699			427,250
Investment securities, available for sale, at fair value		33			34			35			38			39
Investment securities, held to maturity, at amortized cost		45,544			46,957			47,286			48,582			49,174
Other investments		12,521			12,589			10,800			10,757			10,664
Loans held for sale		60,474			42,132			20,600			7,565			—
Loans receivable		3,540,330			3,517,359			3,486,565			3,413,894			3,321,813
Allowance for credit losses		(164,794	)		(183,178	)		(176,994	)		(171,674	)		(148,878	)
Total loans receivable, net		3,375,536			3,334,181			3,309,571			3,242,220			3,172,935
CCBX credit enhancement asset		167,779			183,377			181,890			173,600			149,096
CCBX receivable		13,009			12,685			14,138			16,060			11,520
Premises and equipment, net		29,052			28,639			27,431			25,833			24,526
Lease right-of-use assets		4,891			5,117			5,219			5,427			5,635
Accrued interest receivable		20,849			21,109			21,104			22,315			21,620
Bank-owned life insurance, net		13,648			13,501			13,375			13,255			13,132
Deferred tax asset, net		3,829			3,912			3,600			3,083			2,221
Other assets		13,635			10,747			13,646			11,711			11,742
Total assets	$	4,480,559		$	4,339,282		$	4,121,208		$	4,064,472		$	3,959,549

LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits	$	3,913,571		$	3,791,229		$	3,585,332		$	3,627,288		$	3,543,432
Subordinated debt, net		44,368			44,331			44,293			44,256			44,219
Junior subordinated debentures, net		3,592			3,592			3,591			3,591			3,591
Deferred compensation		295			310			332			369			405
Accrued interest payable		954			1,107			962			1,070			999
Lease liabilities		5,063			5,293			5,398			5,609			5,821
CCBX payable		32,939			29,391			29,171			37,839			32,539
Other liabilities		18,068			14,112			13,425			12,520			11,850
Total liabilities		4,018,850			3,889,365			3,682,504			3,732,542			3,642,856
SHAREHOLDERS’ EQUITY
Common Stock		230,423			229,659			228,177			134,769			132,989
Retained earnings		231,287			220,259			210,529			197,162			183,706
Accumulated other comprehensive loss, net of tax		(1	)		(1	)		(2	)		(1	)		(2	)
Total shareholders’ equity		461,709			449,917			438,704			331,930			316,693
Total liabilities and shareholders’ equity	$	4,480,559		$	4,339,282		$	4,121,208		$	4,064,472		$	3,959,549

COASTAL FINANCIAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except per share amounts; unaudited)

	Three Months Ended
	June 30, 2025			March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024
INTEREST AND DIVIDEND INCOME
Interest and fees on loans	$	98,867		$	98,147	$	95,575	$	99,676	$	90,879
Interest on interest earning deposits with other banks		8,085			6,070		6,021		4,781		5,683
Interest on investment securities		626			650		661		675		686
Dividends on other investments		219			40		191		33		174
Total interest income		107,797			104,907		102,448		105,165		97,422
INTEREST EXPENSE
Interest on deposits		30,400			28,185		29,404		32,083		30,578
Interest on borrowed funds		660			660		667		809		672
Total interest expense		31,060			28,845		30,071		32,892		31,250
Net interest income		76,737			76,062		72,377		72,273		66,172
PROVISION FOR CREDIT LOSSES		32,211			55,781		61,867		70,257		62,325
Net interest income/(expense) after provision for credit losses		44,526			20,281		10,510		2,016		3,847
NONINTEREST INCOME
Service charges and fees		913			860		932		952		946
Loan referral fees		—			—		—		—		—
Unrealized gain (loss) on equity securities, net		(439	)		16		1		2		9
Other income		853			682		473		486		257
Noninterest income, excluding BaaS program income and BaaS indemnification income		1,327			1,558		1,406		1,440		1,212
Servicing and other BaaS fees		1,539			1,419		1,043		1,044		1,525
Transaction and interchange fees		5,109			3,833		3,699		3,549		2,934
Reimbursement of expenses		646			1,026		812		565		857
BaaS program income		7,294			6,278		5,554		5,158		5,316
BaaS credit enhancements		31,268			53,648		62,097		70,108		60,826
BaaS fraud enhancements		2,804			1,993		5,043		2,084		1,784
BaaS indemnification income		34,072			55,641		67,140		72,192		62,610
Total noninterest income		42,693			63,477		74,100		78,790		69,138
NONINTEREST EXPENSE
Salaries and employee benefits		21,401			21,482		17,955		17,060		16,973
Occupancy		915			1,034		958		964		985
Data processing and software licenses		5,541			4,882		4,049		4,338		3,977
Legal and professional expenses		5,962			5,888		4,606		3,597		3,311
Point of sale expense		69			107		89		73		72
Excise taxes		681			722		778		762		(706	)
Federal Deposit Insurance Corporation (“FDIC”) assessments		790			755		750		740		690
Director and staff expenses		612			631		683		559		470
Marketing		50			50		28		67		14
Other expense		1,524			1,938		1,752		1,482		1,383
Noninterest expense, excluding BaaS loan and BaaS fraud expense		37,545			37,489		31,648		29,642		27,169
BaaS loan expense		32,483			32,507		30,720		32,698		29,011
BaaS fraud expense		2,804			1,993		5,043		2,084		1,784
BaaS loan and fraud expense		35,287			34,500		35,763		34,782		30,795
Total noninterest expense		72,832			71,989		67,411		64,424		57,964
Income before provision for income taxes		14,387			11,769		17,199		16,382		15,021
PROVISION FOR INCOME TAXES		3,359			2,039		3,832		2,926		3,425
NET INCOME	$	11,028		$	9,730	$	13,367	$	13,456	$	11,596
Basic earnings per common share	$	0.73		$	0.65	$	0.97	$	1.00	$	0.86
Diluted earnings per common share	$	0.71		$	0.63	$	0.94	$	0.97	$	0.84
Weighted average number of common shares outstanding:
Basic		15,033,296			14,962,507		13,828,605		13,447,066		13,412,667
Diluted		15,447,923			15,462,041		14,268,229		13,822,270		13,736,508

COASTAL FINANCIAL CORPORATION
AVERAGE BALANCES, YIELDS, AND RATES – QUARTERLY
(Dollars in thousands; unaudited)

	For the Three Months Ended
	June 30, 2025							March 31, 2025							June 30, 2024
	Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾
Assets
Interest earning assets:
Interest earning deposits with other banks	$	729,652		$	8,085	4.44	%	$	553,393		$	6,070	4.45	%	$	418,165		$	5,683	5.47	%
Investment securities, available for sale ⁽²⁾		35			—	—			37			1	10.96			43			—	—
Investment securities, held to maturity ⁽²⁾		46,256			626	5.43			47,154			649	5.58			49,737			686	5.55
Other investments		12,825			219	6.85			11,757			40	1.38			10,592			174	6.61
Loans receivable ⁽³⁾		3,567,823			98,867	11.11			3,511,724			98,147	11.33			3,258,042			90,879	11.22
Total interest earning assets		4,356,591			107,797	9.92			4,124,065			104,907	10.32			3,736,579			97,422	10.49
Noninterest earning assets:
Allowance for credit losses		(176,022	)						(170,542	)						(138,472	)
Other noninterest earning assets		298,698							296,993							255,205
Total assets	$	4,479,267						$	4,250,516						$	3,853,312

Liabilities and Shareholders’ Equity
Interest bearing liabilities:
Interest bearing deposits	$	3,369,574		$	30,400	3.62	%	$	3,166,384		$	28,185	3.61	%	$	2,854,575		$	30,578	4.31	%
FHLB advances and other borrowings		3			1	—			—			1	—			1,648			3	0.73
Subordinated debt		44,345			598	5.41			44,309			598	5.47			44,197			598	5.44
Junior subordinated debentures		3,592			61	6.81			3,592			61	6.89			3,590			71	7.95
Total interest bearing liabilities		3,417,514			31,060	3.65			3,214,285			28,845	3.64			2,904,010			31,250	4.33
Noninterest bearing deposits		562,174							543,784							584,661
Other liabilities		44,452							49,624							58,267
Total shareholders’ equity		455,127							442,823							306,374
Total liabilities and shareholders’ equity	$	4,479,267						$	4,250,516						$	3,853,312
Net interest income				$	76,737						$	76,062						$	66,172
Interest rate spread						6.27	%						6.68	%						6.16	%
Net interest margin ⁽⁴⁾						7.06	%						7.48	%						7.12	%

⁽¹⁾Yields and costs are annualized.
⁽²⁾For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
⁽³⁾Includes loans held for sale and nonaccrual loans.
⁽⁴⁾Net interest margin represents net interest income divided by the average total interest earning assets.

COASTAL FINANCIAL CORPORATION
SELECTED AVERAGE BALANCES, YIELDS, AND RATES – BY SEGMENT – QUARTERLY
(Dollars in thousands; unaudited)

	For the Three Months Ended
	June 30, 2025						March 31, 2025						June 30, 2024
(dollars in thousands, unaudited)	Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾
Community Bank
Assets
Interest earning assets:
Loans receivable ⁽²⁾	$	1,879,331	$	30,603	6.53	%	$	1,881,636	$	30,292	6.53	%	$	1,895,699	$	30,741	6.52	%
Total interest earning assets		1,879,331		30,603	6.53			1,881,636		30,292	6.53			1,895,699		30,741	6.52
Liabilities
Interest bearing liabilities:
Interest bearing deposits		1,048,506		6,783	2.59	%		1,045,971		6,604	2.56	%		938,033		6,459	2.77	%
Intrabank liability		342,232		3,792	4.44			356,337		3,909	4.45			429,452		5,836	5.47
Total interest bearing liabilities		1,390,738		10,575	3.05			1,402,308		10,513	3.04			1,367,485		12,295	3.62
Noninterest bearing deposits		488,593						479,329						528,214
Net interest income			$	20,028					$	19,779					$	18,446
Net interest margin⁽³⁾					4.27	%					4.26	%					3.91	%

CCBX
Assets
Interest earning assets:
Loans receivable ⁽²⁾⁽⁴⁾	$	1,688,492	$	68,264	16.22	%	$	1,630,088	$	67,855	16.88	%	$	1,362,343	$	60,138	17.75	%
Intrabank asset		706,157		7,825	4.44			554,781		6,085	4.45			610,646		8,299	5.47
Total interest earning assets		2,394,649		76,089	12.74			2,184,869		73,940	13.72			1,972,989		68,437	13.95
Liabilities
Interest bearing liabilities:
Interest bearing deposits		2,321,068		23,617	4.08	%		2,120,413		21,581	4.13	%		1,916,542		24,119	5.06	%
Total interest bearing liabilities		2,321,068		23,617	4.08			2,120,413		21,581	4.13			1,916,542		24,119	5.06
Noninterest bearing deposits		73,581						64,455						56,447
Net interest income			$	52,472					$	52,359					$	44,318
Net interest margin⁽³⁾					8.79	%					9.72	%					9.03	%
Net interest margin, net of BaaS loan expense⁽⁵⁾					3.35	%					3.68	%					3.12	%

	For the Three Months Ended
	June 30, 2025						March 31, 2025							June 30, 2024
(dollars in thousands, unaudited)	Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance			Interest & Dividends		Yield / Cost ⁽¹⁾		Average Balance		Interest & Dividends		Yield / Cost ⁽¹⁾
Treasury & Administration
Assets
Interest earning assets:
Interest earning deposits with other banks	$	729,652	$	8,085	4.44	%	$	553,393		$	6,070	4.45	%	$	418,165	$	5,683	5.47	%
Investment securities, available for sale ⁽⁶⁾		35		—	—			37			1	10.96			43		—	3.13
Investment securities, held to maturity ⁽⁶⁾		46,256		626	5.43			47,154			649	5.58			49,737		686	5.55
Other investments		12,825		219	6.85			11,757			40	1.38			10,592		174	6.61
Total interest earning assets		788,768		8,930	4.54	%		612,341	—		6,760	4.48	%		478,537		6,543	5.50	%
Liabilities
Interest bearing liabilities:
FHLB advances and borrowings	$	3		1	—		$	—			1	—	%	$	1,648		3	0.73	%
Subordinated debt		44,345		598	5.41			44,309			598	5.47			44,197		598	5.44
Junior subordinated debentures		3,592		61	6.81			3,592			61	6.89			3,590		71	7.95
Intrabank liability, net ⁽⁷⁾		363,925		4,033	4.44			198,444			2,176	4.45			181,194		2,463	5.47
Total interest bearing liabilities		411,865		4,693	4.57			246,345			2,836	4.67			230,629		3,135	5.47
Net interest income			$	4,237						$	3,924					$	3,408
Net interest margin⁽³⁾					2.15	%						2.60	%					2.86	%

⁽¹⁾Yields and costs are annualized.
⁽²⁾Includes loans held for sale and nonaccrual loans.
⁽³⁾Net interest margin represents net interest income divided by the average total interest earning assets.
⁽⁴⁾CCBX yield does not include the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements and originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release for the impact of BaaS loan expense on CCBX loan yield.
⁽⁵⁾Net interest margin, net of BaaS loan expense, includes the impact of BaaS loan expense. BaaS loan expense represents the amount paid or payable to partners for credit enhancements, fraud enhancements, originating & servicing CCBX loans. See reconciliation of the non-GAAP measures at the end of this earnings release.
⁽⁶⁾For presentation in this table, average balances and the corresponding average rates for investment securities are based upon historical cost, adjusted for amortization of premiums and accretion of discounts.
⁽⁷⁾Intrabank assets and liabilities are consolidated for period calculations and presented as intrabank asset, net or intrabank liability, net in the table above.

Non-GAAP Financial Measures

The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance.

However, these non-GAAP financial measures are supplemental and are not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these adjusted measures, this presentation may not be comparable to other similarly titled adjusted measures reported by other companies.

The following non-GAAP measures are presented to illustrate the impact of BaaS loan expense on net loan income and yield on loans and CCBX loans and the impact of BaaS loan expense on net interest income and net interest margin.

Loan income, net of BaaS loan expense, divided by average loans, is a non-GAAP measure that includes the impact BaaS loan expense on loan income and the yield on loans. The most directly comparable GAAP measure is yield on loans.

Net BaaS loan income divided by average CCBX loans is a non-GAAP measure that includes the impact BaaS loan expense on net BaaS loan income and the yield on CCBX loans. The most directly comparable GAAP measure is yield on CCBX loans.

Net interest income, net of BaaS loan expense, is a non-GAAP measure that includes the impact BaaS loan expense on net interest income. The most directly comparable GAAP measure is net interest income.

CCBX net interest margin, net of BaaS loan expense, is a non-GAAP measure that includes the impact of BaaS loan expense on net interest rate margin. The most directly comparable GAAP measure is CCBX net interest margin.

Reconciliations of the GAAP and non-GAAP measures are presented below.

CCBX	As of and for the Three Months Ended
(dollars in thousands; unaudited)	June 30 2025			March 31 2025			June 30 2024
Net BaaS loan income divided by average CCBX loans:
CCBX loan yield (GAAP)⁽¹⁾		16.22	%		16.88	%		17.75	%
Total average CCBX loans receivable	$	1,688,492		$	1,630,088		$	1,362,343
Interest and earned fee income on CCBX loans (GAAP)		68,264			67,855			60,138
BaaS loan expense		(32,483	)		(32,507	)		(29,011	)
Net BaaS loan income	$	35,781		$	35,348		$	31,127
Net BaaS loan income divided by average CCBX loans ⁽¹⁾		8.50	%		8.79	%		9.19	%
CCBX net interest margin, net of BaaS loan expense:
CCBX net interest margin ⁽¹⁾		8.79	%		9.72	%		9.03	%
CCBX earning assets		2,394,649			2,184,869			1,972,989
Net interest income (GAAP)		52,472			52,359			44,318
Less: BaaS loan expense		(32,483	)		(32,507	)		(29,011	)
Net interest income, net of BaaS loan expense	$	19,989		$	19,852		$	15,307
CCBX net interest margin, net of BaaS loan expense ⁽¹⁾		3.35	%		3.68	%		3.12	%

Consolidated	As of and for the Three Months Ended
(dollars in thousands; unaudited)	June 30 2025			March 31 2025			June 30 2024
Net interest margin, net of BaaS loan expense:
Net interest margin ⁽¹⁾		7.06	%		7.48	%		7.12	%
Earning assets		4,356,591			4,124,065			3,736,579
Net interest income (GAAP)		76,737			76,062			66,172
Less: BaaS loan expense		(32,483	)		(32,507	)		(29,011	)
Net interest income, net of BaaS loan expense	$	44,254		$	43,555		$	37,161
Net interest margin, net of BaaS loan expense ⁽¹⁾		4.07	%		4.28	%		4.00	%
Loan income net of BaaS loan expense divided by average loans:
Loan yield (GAAP)⁽¹⁾		11.11	%		11.33	%		11.22	%
Total average loans receivable	$	3,567,823		$	3,511,724		$	3,258,042
Interest and earned fee income on loans (GAAP)		98,867			98,147			90,879
BaaS loan expense		(32,483	)		(32,507	)		(29,011	)
Net loan income	$	66,384		$	65,640		$	61,868
Loan income, net of BaaS loan expense, divided by average loans ⁽¹⁾		7.46	%		7.58	%		7.64	%

⁽¹⁾ Annualized calculations for periods presented.

The following non-GAAP measure is presented to illustrate the impact of BaaS loan expense, BaaS fraud expense and reimbursement of expenses (BaaS) on noninterest expense. Certain noninterest expenses are reimbursed by our CCBX partners. In accordance with GAAP we recognize all expenses in noninterest expense and the reimbursement of expenses from our CCBX partner in noninterest income. This non-GAAP measure shows the portion of noninterest expenses that are reimbursed by partners to assist the understanding of how the increases in noninterest expense are related to expenses incurred for and reimbursed by CCBX partner. The most comparable GAAP measure is noninterest expense.

	As of and for the Three Months Ended
(dollars in thousands, unaudited)	June 30, 2025		March 31, 2025		June 30, 2024
Noninterest expense, net of reimbursement of expenses (BaaS)
Noninterest expense (GAAP)	$	72,832	$	71,989	$	57,964
Less: BaaS loan expense		32,483		32,507		29,011
Less: BaaS fraud expense		2,804		1,993		1,784
Less: Reimbursement of expenses		646		1,026		857
Noninterest expense, net of BaaS loan expense, BaaS fraud expense and reimbursement of expenses	$	36,899	$	36,463	$	26,312

APPENDIX A –
As of June 30, 2025

Industry Concentration

We have a diversified loan portfolio, representing a wide variety of industries. Our major categories of loans are commercial real estate, consumer and other loans, residential real estate, commercial and industrial, and construction, land and land development loans. Together they represent $3.55 billion in outstanding loan balances. When combined with $1.93 billion in unused commitments the total of these categories is $5.48 billion.

Commercial real estate loans represent the largest segment of our loans, comprising 37.0% of our total balance of outstanding loans as of June 30, 2025. Unused commitments to extend credit represents an additional $30.1 million, and the combined total in commercial real estate loans represents $1.34 billion, or 24.5% of our total outstanding loans and loan commitments.

The following table summarizes our loan commitment by industry for our commercial real estate portfolio as of June 30, 2025:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments		Total Outstanding Balance & Available Commitment		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
Apartments	$	362,315	$	2,889	$	365,204	6.7	%	$	3,814	95
Hotel/Motel		154,877		1,073		155,950	2.8			6,734	23
Convenience Store		135,118		546		135,664	2.5			2,290	59
Office		119,622		6,666		126,288	2.3			1,375	87
Warehouse		102,688		—		102,688	1.9			1,770	58
Retail		93,552		836		94,388	1.7			936	100
Mixed use		93,455		5,287		98,742	1.8			1,126	83
Mini Storage		73,695		7,272		80,967	1.5			3,685	20
Strip Mall		43,468		—		43,468	0.8			6,210	7
Manufacturing		35,274		570		35,844	0.7			1,306	27
Groups < 0.70% of total		96,818		4,938		101,756	1.8			1,226	79
Total	$	1,310,882	$	30,077	$	1,340,959	24.5	%	$	2,055	638

Consumer loans comprise 34.7% of our total balance of outstanding loans as of June 30, 2025. Unused commitments to extend credit represents an additional $746.8 million, and the combined total in consumer and other loans represents $1.98 billion, or 36.1% of our total outstanding loans and loan commitments. The $746.8 million in commitments is subject to CCBX partner/portfolio maximum limits. As illustrated in the table below, our CCBX partners bring in a large number of mostly smaller dollar loans, resulting in an average consumer loan balance of just $900. CCBX consumer loans are underwritten to CCBX credit standards and underwriting of these loans is regularly tested, including quarterly testing for partners with portfolio balances greater than $10.0 million.

The following table summarizes our loan commitment by industry for our consumer and other loan portfolio as of June 30, 2025:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments ⁽¹⁾		Total Outstanding Balance & Available Commitment ⁽¹⁾		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
CCBX consumer loans
Credit cards	$	533,925	$	702,611	$	1,236,536	22.6	%	$	1.6	337,749
Installment loans		671,089		30,817		701,906	12.8			0.8	796,927
Lines of credit		676		14		690	0.0			0.9	715
Other loans		14,556		—		14,556	0.3			0.1	240,653
Community bank consumer loans
Installment loans		738		2		740	0.0			30.8	24
Lines of credit		178		339		517	0.0			5.7	31
Other loans		11,314		13,000		24,314	0.4			32.6	347
Total	$	1,232,476	$	746,783	$	1,979,259	36.1	%	$	0.9	1,376,446

⁽¹⁾Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

Residential real estate loans comprise 12.2% of our total balance of outstanding loans as of June 30, 2025. Unused commitments to extend credit represents an additional $557.7 million, which is subject to partner/portfolio maximum limits, and the combined total in residential real estate loans represents $991.3 million, or 18.1% of our total outstanding loans and loan commitments.

The following table summarizes our loan commitment by industry for our residential real estate loan portfolio as of June 30, 2025:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments ⁽¹⁾		Total Outstanding Balance & Available Commitment ⁽¹⁾		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
CCBX residential real estate loans
Home equity line of credit	$	234,786	$	509,297	$	744,083	13.6	%	$	27	8,735
Community bank residential real estate loans
Closed end, secured by first liens		162,205		1,064		163,269	3.0			554	293
Home equity line of credit		30,328		46,270		76,598	1.4			122	249
Closed end, second liens		6,311		1,073		7,384	0.1			218	29
Total	$	433,630	$	557,704	$	991,334	18.1	%	$	47	9,306

⁽¹⁾Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits. CCBX home equity lines of credit are limited to a $375.0 million portfolio maximum.

Commercial and industrial loans comprise 10.6% of our total balance of outstanding loans as of June 30, 2025. Unused commitments to extend credit represents an additional $527.8 million, and the combined total in commercial and industrial loans represents $903.6 million, or 16.5% of our total outstanding loans and loan commitments. Included in commercial and industrial loans is $199.7 million in outstanding capital call lines, with an additional $438.4 million in available loan commitments which is limited to a $350.0 million portfolio maximum. Capital call lines are provided to venture capital firms through one of our CCBX BaaS clients. These loans are secured by the capital call rights and are individually underwritten to the Bank’s credit standards and the underwriting is reviewed by the Bank on every capital call line.

The following table summarizes our loan commitment by industry for our commercial and industrial loan portfolio as of June 30, 2025:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments ⁽¹⁾		Total Outstanding Balance & Available Commitment ⁽¹⁾		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
CCBX C&I loans
Capital call lines	$	199,675	$	438,391	$	638,066	11.6	%	$	1,597	125
Retail and other loans		26,142		23,001		49,143	0.9			9	2,915
Community bank C&I loans
Construction/Contractor services		30,449		32,173		62,622	1.1			154	198
Financial institutions		51,768		—		51,768	0.9			4,314	12
Medical / Dental / Other care		5,496		3,683		9,179	0.2			423	13
Manufacturing		5,325		3,976		9,301	0.2			140	38
Groups < 0.20% of total		56,888		26,593		83,481	1.6			228	250
Total	$	375,743	$	527,817	$	903,560	16.5	%	$	106	3,551

⁽¹⁾ Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

Construction, land and land development loans comprise 5.5% of our total balance of outstanding loans as of June 30, 2025. Unused commitments to extend credit represents an additional $70.0 million, and the combined total in construction, land and land development loans represents $264.2 million, or 4.8% of our total outstanding loans and loan commitments.

The following table details our loan commitment for our construction, land and land development portfolio as of June 30, 2025:

(dollars in thousands; unaudited)	Outstanding Balance		Available Loan Commitments		Total Outstanding Balance & Available Commitment		% of Total Loans (Outstanding Balance & Available Commitment)		Average Loan Balance		Number of Loans
Commercial construction	$	104,078	$	48,309	$	152,387	2.8	%	$	7,434	14
Residential construction		39,831		17,340		57,171	1.0			2,655	15
Developed land loans		22,875		604		23,479	0.4			1,271	18
Undeveloped land loans		20,067		748		20,815	0.4			1,338	15
Land development		7,299		3,048		10,347	0.2			811	9
Total	$	194,150	$	70,049	$	264,199	4.8	%	$	2,735	71

Exposure and risk in our construction, land and land development portfolio increased compared to recent periods as indicated in the following table:

	Outstanding Balance as of
(dollars in thousands; unaudited)	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024
Commercial construction	$	104,078	$	96,716	$	83,216	$	97,792	$	110,372
Residential construction		39,831		39,375		40,940		35,822		34,652
Undeveloped land loans		20,067		16,684		8,665		8,606		8,372
Developed land loans		22,875		7,788		8,305		14,863		13,954
Land development		7,299		5,988		7,072		5,968		5,714
Total	$	194,150	$	166,551	$	148,198	$	163,051	$	173,064

Commitments to extend credit total $1.93 billion at June 30, 2025, however we do not anticipate our customers using the $1.93 billion that is showing as available due to CCBX partner and portfolio limits.

The following table presents outstanding commitments to extend credit as of June 30, 2025:

Consolidated
(dollars in thousands; unaudited)	As of June 30, 2025 (1)
Commitments to extend credit:
Commercial and industrial loans	$	89,426
Commercial and industrial loans – capital call lines		438,391
Construction – commercial real estate loans		52,709
Construction – residential real estate loans		17,340
Residential real estate loans		557,704
Commercial real estate loans		30,077
Credit cards		702,611
Consumer and other loans		44,172
Total commitments to extend credit	$	1,932,430

⁽¹⁾Total exposure on CCBX loans is subject to CCBX partner/portfolio maximum limits.

We have individual CCBX partner portfolio limits with our each of our partners to manage loan concentration risk, liquidity risk, and counter-party partner risk. For example, as of June 30, 2025, capital call lines outstanding balance totaled $199.7 million and, while commitments totaled $438.4 million, the commitments are limited to a maximum of $350.0 million by agreement with the partner. If a CCBX partner goes over their individual limit, it would be a breach of their contract and the Bank may impose penalties and would have the choice to fund or not fund the loan.

See the table below for CCBX portfolio maximums and related available commitments:

CCBX
(dollars in thousands; unaudited)	Balance			Percent of CCBX loans receivable		Available Commitments ⁽¹⁾		Maximum Portfolio Size		Cash Reserve/Pledge Account Amount ⁽²⁾
Commercial and industrial loans:
Capital call lines	$	199,675		11.9	%	$	438,391	$	350,000	$	—
All other commercial & industrial loans		26,142		1.6			23,001		471,186		531
Real estate loans:
Home equity lines of credit ⁽³⁾		234,786		14.0			509,297		375,000		36,469
Consumer and other loans:
Credit cards – cash secured		364					—				—
Credit cards – unsecured		533,561					702,611				30,827
Credit cards – total		533,925		31.8			702,611		850,000		30,827
Installment loans – cash secured		128,861					30,817				—
Installment loans – unsecured		542,228					—				(38	)
Installment loans – total		671,089		39.8			30,817		1,818,619		(38	)
Other consumer and other loans		15,232		0.9			14		5,195		275
Gross CCBX loans receivable		1,680,849		100.0	%	$	1,704,131	$	3,870,000	$	68,064
Net deferred origination fees		(569	)
Loans receivable	$	1,680,280

(1) Remaining commitment available, net of outstanding balance.
(2) Balances are as of July 8, 2025.
(3) These home equity lines of credit are secured by residential real estate and are accessed by using a credit card, but are classified as 1-4 family residential properties per regulatory guidelines.

APPENDIX B –
As of June 30, 2025

CCBX – BaaS Reporting Information

During the quarter ended June 30, 2025, $31.3 million was recorded in BaaS credit enhancements related to the provision for credit losses – loans and reserve for unfunded commitments for CCBX partner loans and negative deposit accounts. Agreements with our CCBX partners provide for a credit enhancement provided by the partner which protects the Bank by indemnifying or reimbursing incurred losses. In accordance with accounting guidance, we estimate and record a provision for expected losses for these CCBX loans, unfunded commitments, negative deposit accounts and accrued interest receivable on some CCBX partner loans. When the provision for credit losses – loans and provision for unfunded commitments is recorded, a credit enhancement asset is also recorded on the balance sheet through noninterest income (BaaS credit enhancements) in recognition of the CCBX partner legal commitment to indemnify or reimburse losses. The credit enhancement asset is relieved as credit enhancement payments and recoveries are received from the CCBX partner or taken from the partner’s cash reserve account. Agreements with our CCBX partners also provide protection to the Bank from fraud by indemnifying or reimbursing incurred fraud losses. BaaS fraud includes non-credit fraud losses on loans and deposits originated through partners, generally fraud losses related to loans are comprised primarily of first payment defaults. Fraud losses are recorded when incurred as losses in noninterest expense, and the enhancement received from the CCBX partner is recorded in noninterest income, resulting in a net impact of zero to the income statement. Many CCBX partners also pledge a cash reserve account at the Bank which the Bank can collect from when losses occur that is then replenished by the partner on a regular interval. Although agreements with our CCBX partners provide for credit enhancements that provide protection to the Bank from credit and fraud losses by indemnifying or reimbursing incurred credit and fraud losses, if our partner is unable to fulfill their contracted obligation then the bank would be exposed to additional loan and deposit losses if the cash flows on the loans were not sufficient to fund the reimbursement of loan losses, as a result of this counterparty risk. If a CCBX partner does not replenish their cash reserve account the Bank may consider an alternative plan for funding the cash reserve. This may involve the possibility of adjusting the funding amounts or timelines to better align with the partner’s specific situation. If a mutually agreeable funding plan is not agreed to, the Bank could declare the agreement in default, take over servicing and cease paying the partner for servicing the loan and providing credit enhancements. The Bank would evaluate any remaining credit enhancement asset from the CCBX partner in the event the partner failed to determine if a write-off is appropriate. If a write-off occurs, the Bank would retain the full yield and any fee income on the loan portfolio going forward, and our BaaS loan expense would decrease once default occurred and payments to the CCBX partner were stopped.

The Bank records contractual interest earned from the borrower on CCBX partner loans in interest income, adjusted for origination costs which are paid or payable to the CCBX partner. BaaS loan expense represents the amount paid or payable to partners for credit and fraud enhancements and originating and servicing CCBX loans. To determine net revenue (Net BaaS loan income) earned from CCBX loan relationships, the Bank takes BaaS loan interest income and deducts BaaS loan expense to arrive at Net BaaS loan income (a reconciliation of the non-GAAP measures are set forth in the preceding section of this earnings release) which can be compared to interest income on the Company’s community bank loans.

The following table illustrates how CCBX partner loan income and expenses are recorded in the financial statements:

Loan income and related loan expense	Three Months Ended
(dollars in thousands; unaudited)	June 30, 2025			March 31, 2025			June 30, 2024
Yield on loans ⁽¹⁾		16.22	%		16.88	%		17.75	%
BaaS loan interest income	$	68,264		$	67,855		$	60,138
Less: BaaS loan expense		32,483			32,507			29,011
Net BaaS loan income ⁽²⁾	$	35,781		$	35,348		$	31,127
Net BaaS loan income divided by average BaaS loans ⁽¹⁾⁽²⁾		8.50	%		8.79	%		9.19	%

(1) Annualized calculation for quarterly periods shown.
(2) A reconciliation of the non-GAAP measures are set forth in the preceding section of this earnings release.

An increase in average CCBX loans receivable resulted in increased interest income on CCBX loans during the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025. Our strategy is to optimize the CCBX loan portfolio and strengthen our balance sheet through originating higher quality new loans with enhanced credit standards. These higher quality loans tend to have lower stated rates and expected losses than some of our CCBX loans historically. Current loan sales and new loan growth are at more similar interest rates compared to prior periods when we were selling loans with higher risk and higher interest rates and replacing them with higher quality lower interest rate loans. We continue to reposition ourselves by managing CCBX credit and concentration levels in an effort to optimize our loan portfolio and also generate off balance sheet fee income. Growth in CCBX loans has resulted in an increase in interest income for the quarter ended June 30, 2025 compared to the quarter ended June 30, 2024.

The following tables are a summary of the interest components, direct fees and expenses of BaaS for the periods indicated and are not inclusive of all income and expense related to BaaS.

Interest income	Three Months Ended
(dollars in thousands; unaudited)	June 30, 2025		March 31, 2025		June 30, 2024
Loan interest income	$	68,264	$	67,855	$	60,138
Total BaaS interest income	$	68,264	$	67,855	$	60,138

Interest expense	Three Months Ended
(dollars in thousands; unaudited)	June 30, 2025		March 31, 2025		June 30, 2024
BaaS interest expense	$	23,617	$	21,581	$	24,119
Total BaaS interest expense	$	23,617	$	21,581	$	24,119

BaaS income	Three Months Ended
(dollars in thousands; unaudited)	June 30, 2025		March 31, 2025		June 30, 2024
BaaS program income:
Servicing and other BaaS fees	$	1,539	$	1,419	$	1,525
Transaction and interchange fees		5,109		3,833		2,934
Reimbursement of expenses		646		1,026		857
Total BaaS program income		7,294		6,278		5,316
BaaS indemnification income:
BaaS credit enhancements		31,268		53,648		60,826
BaaS fraud enhancements		2,804		1,993		1,784
BaaS indemnification income		34,072		55,641		62,610
Total noninterest BaaS income	$	41,366	$	61,919	$	67,926

Servicing and other BaaS fees increased $120,000 and transaction and interchange fees increased $1.3 million in the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025. We expect servicing and other BaaS fees to be higher when we are bringing new partners on and then to decrease when transaction and interchange fees increase as partner activity grows and contracted minimum fees are replaced with these recurring fees when they exceed the minimum fees. Increases in BaaS reimbursement of fees offsets increases in noninterest expense from BaaS expenses covered by CCBX partners. Transaction and interchange fees for the quarter ended June 30, 2025 includes $504,000 in nonrecurring revenue.

BaaS loan and fraud expense:	Three Months Ended
(dollars in thousands; unaudited)		June 30, 2025		March 31, 2025		June 30, 2024
BaaS loan expense	$	32,483	$	32,507	$	29,011
BaaS fraud expense		2,804		1,993		1,784
Total BaaS loan and fraud expense	$	35,287	$	34,500	$	30,795

Infographics accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/6d139571-0367-4331-b052-e1609dd3796f
https://www.globenewswire.com/NewsRoom/AttachmentNg/7fef1877-3f7a-47cc-99fa-0bcdfb00de42

The MIL Network –

July 30, 2025

MIL-OSI: Baker Hughes to Acquire Chart Industries, Accelerating Energy & Industrial Technology Strategy
Source: GlobeNewswire (MIL-OSI)
- Significant step high-grades the portfolio and adds value accretive customer offerings, transforms Baker Hughes’ Industrial & Energy Technology segment
- Chart Industries brings differentiated capabilities across a diverse set of end markets advantaged by secular growth drivers such as natural gas, data centers and decarbonization
- Highly complementary capabilities enable enhanced value-creation solutions for customers across the lifecycle of projects and accelerate aftermarket growth through increased service penetration of combined installed base
- $325 million in annualized cost synergies expected to be realized at end of third year
- Compelling financial impact, as it is accretive to growth, margins, EPS and cash flow
- Baker Hughes to host conference call today to discuss the transaction at 8:30 a.m. ET / 7:30 a.m. CT
HOUSTON and LONDON and ATLANTA, July 29, 2025 (GLOBE NEWSWIRE) — Baker Hughes (NASDAQ: BKR) and Chart Industries (NYSE: GTLS) (“Chart”) announced Tuesday they have entered into a definitive agreement under which Baker Hughes will acquire all outstanding shares of Chart’s common stock for $210 per share in cash, equivalent to a total enterprise value of $13.6 billion.

Chart is a global leader in the design, engineering and manufacturing of process technologies and equipment for gas and liquid molecule handling across a broad range of industrial and energy end markets. Chart’s highly differentiated products and solutions are used in every phase of the liquid gas supply chain, from engineering and design to installation, preventative maintenance to repair and service, as well as ongoing digital monitoring. A technology leader in its markets, Chart generated $4.2 billion in revenue and $1.0 billion adjusted EBITDA in 2024. It operates 65 manufacturing locations with over 50 service centers globally.

“This acquisition is a milestone for Baker Hughes and a testament to our strong financial execution and strategic focus as we continue to define our position as a leading energy and industrial technology company,” said Baker Hughes Chairman and CEO Lorenzo Simonelli. “We know Chart well, having worked alongside them on many critical energy infrastructure projects. Their products and services are highly complementary to our offerings and strongly aligned with our intent to deliver distinctive and efficient end-to-end lifecycle solutions for our customers across their most critical applications. The combination positions Baker Hughes to be a technology leader that can provide engineering and technology expertise to meet the growing demand for lower-carbon, efficient energy and industrial solutions across attractive growth markets such as LNG, data centers and New Energy.

“The acquisition also delivers compelling financial returns for our shareholders. Adding this high-growth, high-margin business to our Industrial & Energy Technology segment will deliver strong earnings accretion and returns, contributing to an improved growth and margin profile,” Simonelli said. “We look forward to welcoming Chart into the Baker Hughes organization and, together, achieving even greater success and driving long-term value for shareholders.”

“This all-cash transaction with Baker Hughes delivers immediate value to Chart shareholders,” said Chart President and CEO Jill Evanko. “Thanks to the outstanding work of our global OneChart team, we have successfully built a product and solution portfolio that spans front-end engineering design through aftermarket services. The Baker Hughes team shares our engineering-focused culture and commitment to operational excellence. Our complementary solutions fit seamlessly with Baker Hughes’ Industrial & Energy Technology segment, and together we can help our customers solve the most critical energy access and sustainability needs. Our Board is proud to deliver this outcome to our shareholders.”

Compelling Strategic and Financial Benefits
- Advances Baker Hughes’ Strategic Vision to be an Energy & Industrial Technology Leader: Chart and Baker Hughes together bring a highly differentiated set of capabilities to solve complex energy challenges and support customers’ sustainability goals – positioning the combined company as a leader in a lower-carbon, more resource-efficient future.
- Expands Baker Hughes’ Offerings in Attractive Growth Markets: Chart’s offering is well positioned to deepen Baker Hughes’ exposure to attractive high-growth markets, including data centers, space and New Energy. The acquisition also broadens Baker Hughes’ exposure to more durable industrial sectors including industrial gas, metals and mining, and food and beverage, significantly increasing Baker Hughes’ addressable market and through-cycle growth potential.
- Complementary Product Capabilities: Each company has distinctive products and solutions that together improve customer value proposition. Baker Hughes’ core competencies in rotating equipment, flow control and digital technology pair well with Chart’s competencies in heat transfer, air and gas handling, and process technologies.
- Strengthens Baker Hughes’ Lifecycle Revenue Mix: The combined company will have a large and structurally growing installed base creating opportunities to drive growth in high-value aftermarket products and services, as well as digital services using Chart’s Uptime digital platform. Baker Hughes’ expansive service footprint is expected to increase service rates for Chart’s installed base driving more profitable, recurring revenue across the combined portfolio.
- Delivers Substantial Synergies: Baker Hughes has identified $325 million of annualized cost synergy opportunities by the end of year three. Baker Hughes intends to drive productivity improvements by leveraging Baker Hughes’ scale in manufacturing and consolidating the companies’ supply chains, as well as optimizing costs across the SG&A and R&D functions. Baker Hughes’ confidence in realizing these synergies is supported by the continued success of its business system, a key driver of IET margin expansion over the past three years.
- Attractive Financial Profile and Returns for Shareholders: The transaction is expected to be immediately accretive to growth, margins and cash flow, with double-digit EPS accretion in the first full year after the transaction closes. Chart’s differentiated position in attractive and growing markets is expected to deliver sustainable underlying growth that will be accretive to Baker Hughes’ through-cycle growth profile. The combination of strong growth, attractive margins and the synergy potential to expand operating margins meet all of Baker Hughes’ return criteria, including double-digit ROIC.
Transaction Details & Approvals
Under the terms of the agreement, Chart shareholders will receive $210 per share of common stock in cash. The purchase price represents an enterprise value of $13.6 billion, and a multiple of ~9x Chart Consensus 2025 EBITDA on a fully synergized basis.

Baker Hughes has secured fully committed bridge debt financing to fund the transaction, provided by Goldman Sachs Bank USA, Goldman Sachs Lending Partners LLC, and Morgan Stanley Senior Funding, Inc., which is expected to be replaced with permanent debt financing prior to close. Baker Hughes remains committed to maintaining its A credit rating and will use its strong free cash flow and expected divestiture proceeds to support debt reduction while maintaining, and growing over time, its strong dividend. Baker Hughes projects net leverage at close will be 2.25x and will de-lever to 1.0-1.5x net leverage within 24 months after close. Flexibility will be maintained on share repurchases until leverage reaches the 1.0-1.5x target, after which Baker Hughes intends to return 60-80% of FCF to shareholders.

The Boards of Directors of Baker Hughes and Chart have each unanimously approved the transaction, and the Chart Board of Directors has unanimously recommended that Chart shareholders approve the transaction. The transaction is subject to customary conditions, including approval by Chart shareholders, and the receipt of applicable regulatory approvals. The transaction is expected to be completed by mid-year 2026.

Advisers
Goldman Sachs & Co. LLC, Centerview Partners LLC, and Morgan Stanley & Co. LLC are serving as financial advisers to Baker Hughes, and Cleary Gottlieb Steen & Hamilton LLP, and WilmerHale are serving as legal advisers. Wells Fargo is serving as financial adviser to Chart, and Winston & Strawn is serving as legal adviser.

Investor Conference Call and Presentation
Baker Hughes will host a conference call to discuss the transaction on July 29 at 8:30 a.m. ET, 7:30 a.m. CT. The conference call will be broadcast live via a webcast and can be accessed by visiting the Events and Presentations page on the company’s website at: investors.bakerhughes.com. Those who wish to dial in may call 1-800-343-1703 (U.S.) or 1-785-424-1226 (international) and enter passcode 52472. An archived version of the webcast will be available on the website for one month following the webcast.

About Baker Hughes
Baker Hughes (NASDAQ: BKR) is an energy technology company that provides solutions to energy and industrial customers worldwide. Built on a century of experience and conducting business in over 120 countries, our innovative technologies and services are taking energy forward – making it safer, cleaner and more efficient for people and the planet. Visit us at bakerhughes.com

About Chart Industries, Inc.
Chart Industries, Inc. is a global leader in the design, engineering, and manufacturing of process technologies and equipment for gas and liquid molecule handling for the Nexus of Clean™ – clean power, clean water, clean food, and clean industrials, regardless of molecule. The company’s unique product and solution portfolio across stationary and rotating equipment is used in every phase of the liquid gas supply chain, including engineering, service and repair and from installation to preventive maintenance and digital monitoring. Chart is a leading provider of technology, equipment and services related to liquefied natural gas, hydrogen, biogas and CO2 capture amongst other applications. Chart is committed to excellence in environmental, social and corporate governance issues both for its company as well as its customers. With 64 global manufacturing locations and over 50 service centers from the United States to Asia, Australia, India, Europe and South America, the company maintains accountability and transparency to its team members, suppliers, customers and communities. To learn more, visit www.chartindustries.com.

For more information, please contact:

Media Relations

Baker Hughes
Adrienne M. Lynch
+1 713-906-8407
adrienne.lynch@bakerhughes.com

Chart Industries
Jim Golden / Jude Gorman / Jack Kelleher
Collected Strategies
Chart-CS@collectedstrategies.com

Investor Relations

Baker Hughes
Chase Mulvehill
+1 346-297-2561
investor.relations@bakerhughes.com

Chart Industries
John Walsh
1-770-721-8899
john.walsh@chartindustries.com

Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995 (each a “forward-looking statement”). All statements, other than historical facts, including statements regarding the presentation of Baker Hughes’ operations in future reports and any assumptions underlying any of the foregoing, are forward-looking statements. Forward-looking statements concern future circumstances and results and other statements that are not historical facts and are sometimes identified by the words “may,” “will,” “should,” “potential,” “intend,” “expect,” “would,” “seek,” “anticipate,” “estimate,” “overestimate,” “underestimate,” “believe,” “could,” “project,” “predict,” “continue,” “target,” “goal” or other similar words or expressions. Forward-looking statements are based upon current plans, estimates and expectations that are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Factors that could cause actual results to differ include, but are not limited to: Baker Hughes’ ability to consummate the proposed transaction with Chart (the “Proposed Transaction”); Baker Hughes and Chart obtaining the regulatory approvals required for the Proposed Transaction on the terms expected or on the anticipated schedule or at all; the failure to satisfy other conditions to the completion of the Proposed Transaction, including the receipt of Chart stockholder approval; Baker Hughes’ ability to finance the Proposed Transaction; Baker Hughes’ indebtedness, including the substantial indebtedness Baker Hughes expects to incur in connection with the Proposed Transaction and the need to generate sufficient cash flows to service and repay such debt; the possibility that Baker Hughes may be unable to achieve expected synergies and operating efficiencies from the Proposed Transaction within the expected time-frames or at all and to successfully integrate Chart’s operations with those of Baker Hughes; such integration may be more difficult, time-consuming or costly than expected; operating costs, customer loss and business disruption (including, without limitation, difficulties in retaining or maintaining relationships with employees, customers or suppliers) may be greater than expected following the Proposed Transaction or the public announcement of the Proposed Transaction; Baker Hughes and Chart being subject to competition and increased competition is expected in the future; general economic conditions that are less favorable than expected; the potential for litigation related to the Proposed Transaction. Other important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, the risk factors identified in the “Risk Factors” section of Part 1 of Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 4, 2025, and those set forth from time-to-time in other filings by Baker Hughes with the SEC. Additional risks that may affect Chart’s results of operations are identified in the “Risk Factors” section of Part 1 of Item 1A of Chart’s Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the SEC on February 28, 2025, and those set forth from time-to-time in other filings by Chart with the SEC. These documents are available through our website or through the SEC’s Electronic Data Gathering and Analysis Retrieval (EDGAR) system at http://www.sec.gov.

Any forward-looking statements speak only as of the date of this press release. Neither Baker Hughes nor Chart undertakes any obligation to update any forward-looking statements, whether as a result of new information or developments, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

No Offer or Solicitation

This communication shall not constitute an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

Important Additional Information

This communication may be deemed to be solicitation material in respect of the proposed merger transaction between Chart and Baker Hughes. In connection therewith, Chart intends to file relevant materials with the SEC, including a proxy statement of Chart (the “proxy statement”) that will be mailed to Chart stockholders seeking their approval of its transaction-related proposals. However, such documents are not currently available. BEFORE MAKING ANY VOTING OR ANY INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT REGARDING THE PROPOSED TRANSACTION AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES TO THE PROPOSED TRANSACTION. Investors and security holders may obtain free copies of the proxy statement and other documents containing important information about each of Chart and Baker Hughes, once such documents are filed with the SEC, through the website maintained by the SEC at www.sec.gov. Copies of documents filed with the SEC by Chart will be available free of charge on Chart’s website at ir.chartindustries.com.

Participants in the Solicitation

Chart and its directors and executive officers may be deemed to be participants in the solicitation of proxies from Chart’s stockholders in respect of the proposed transaction. Information regarding Chart’s directors and executive officers, including a description of their direct interests, by security holdings or otherwise, is contained in Chart’s Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025, and its proxy statement filed with the SEC on April 8, 2025. To the extent holdings of Chart’s securities by its directors or executive officers have changed since the amounts set forth in Chart’s 2025 proxy statement, such changes have been or will be reflected on Initial Statements of Beneficial Ownership of Securities on Form 3, Statements of Changes in Beneficial Ownership on Form 4 or Annual Statements of Changes in Beneficial Ownership of Securities on Form 5 subsequently filed with the SEC. Additional information regarding the interests of such participants in the solicitation of proxies in respect of the proposed merger transaction will be included in the proxy statement and other relevant materials to be filed with the SEC when they become available. These documents (when available) can be obtained free of charge from the sources indicated above.

The MIL Network –
July 30, 2025
MIL-OSI Australia: How to apply for release of super on compassionate grounds
Source: New places to play in Gungahlin

Assistance with your application

You can apply onlineExternal Link or on a paper form for early release on compassionate grounds.

We’re unable to process applications over the phone, but we can answer any questions you have about completing your application – phone us on 13 10 20.

We don’t charge for processing applications, but some third parties may charge a fee to assist with preparing and submitting an application on your behalf. These entities can only charge you a fee if they’re a registered tax agent. To check if a provider is a registered tax agent, use the Tax Practitioners Board registerExternal Link.

Your super can’t be released to cover the fees of registered agents that assist you to apply. Where you have paid a fee to a registered agent who assisted you to apply, you can’t claim this fee as a deduction in your income tax return.

Sharing myGov details

You should never share your myGov sign in details with anyone else, including registered agents or health practitioners. Doing so is a breach of the myGov terms ofExternal Link use, compromises the security of your records, and can result in significant consequences for you, including having your myGov account being locked, suspended, or deactivated permanently.

Where you share your myGov sign in details with third parties, you are responsible for everything they do with your account, including any penalties where false or misleading statements have been made.

Before you apply
Before you apply you should:
1. carefully review the information we provide here to
2. confirm you have a sufficient super balance to cover the expense and withholding tax
3. check if your super fund allows early release of super
4. collect all the documents and evidence required to support your application.
If you have a self-managed super fund (SMSF), you must still apply to us and get our approval before releasing any money from the fund.
Before submitting your application, you need to ensure that all the information you’re providing is accurate, including the content within medical reports and other documents you provide. Penalties can apply to anyone who provides inaccurate information in their application.

Common errors when applying

Applications need to be supported by the right evidence for the specific compassionate release ground. Failing to provide the right evidence will result in delays in processing the application or it not being approved.

Common errors when applying include:
- Attaching out of date quotes or invoices for unpaid expenses.
  - Quotes must be no more than 6 months old.
  - Invoices must be no more than 30 days old.
- Not providing the right medical reports to support your medical treatment.
  - You must obtain a medical report from the relevant registered medical specialist in the area of the medical condition that you’re applying for release to treat.
  - If you’re applying for treatment to alleviate an acute or chronic mental illness, the relevant medical specialist report must be completed by a psychiatrist.
- Applying to prevent the foreclosure or forced sale of your home from a mortgage lender and not providing all evidence requirements: default notice, letter from the mortgage lender and a utility bill.
- Applying for release to prevent foreclosure or forced sale of your home for ineligible expenses such as a personal credit card debt, outstanding rent, or other personal loans.
- Applying to purchase a vehicle for medical transport where the vehicle costs more than $20,000 and not including additional information that supports the need for the specific vehicle.
- Applying for the expense of a dependant and not including sufficient evidence to support the existence of an interdependent or substantial financially dependent relationship.
For more information on evidence requirements, see Access on compassionate grounds – what you need to know.

How to apply

Online application process

You can access our online application form via your myGov accountExternal Link linked to ATO online services.

From the ATO online services home page, select the heading option Super, then Manage, then Compassionate release of super.

Ensure you’re aware of the following information before completing your online application:
- You need digital copies of the required evidence. We accept photos of documents. Supported file formats are PDF, gif, jpeg and png. We don’t accept screen shots of text messages, emails or Google documents.
- Our system can’t accept more than 20 attachments.
- Each attachment needs to be smaller than 10 MB.
Applying to repay borrowed amounts

Our online and paper application forms currently indicate that paid expenses are not allowable expenses for compassionate release of super purposes, including where the expense was paid using borrowed money – such as through obtaining a loan, using credit facilities, or other borrowing of money, including from family or friends.

We’re currently in the process of updating these forms to be consistent with the information on our website. Until the forms are updated, if you’re applying to repay a borrowed amount that is still outstanding and can’t be paid via other means (in part or full), you’ll need to do the following.

When completing our:
- online application, you need to select the tick box advising ‘The expenses have not been paid’ because the unpaid expense is the outstanding balance of the borrowed amount
- paper application, the question ‘Have the expenses been paid?’ needs to be answered ‘No’ because the unpaid expense is the outstanding balance of the borrowed amount.
You will also need to provide additional documents to support the borrowed amount, including a paid invoice or receipt, statutory declarations and financial documents.

Benefits of applying online
- Online applications are generally processed more quickly than paper applications, which can take up to 28 days to process.
- You can view your application and the documents you provide at any time.
- You will receive a receipt ID that confirms we have received your application and can be used to discuss it with us.
- You don’t have to make copies of your evidence or send them via post.
- You’ll receive the outcome of your application quicker via your myGov inbox.
- Our online application includes a help function to help you apply correctly.
If you can’t apply online

If you don’t have access to our online services to submit your application, request a paper application form by:
- phoning us from within Australia on 13 10 20 (8:00 am to 6:00 pm, Monday to Friday AEST).
- phoning us from overseas on +61 2 6216 1111 (8:00 am to 5:00 pm, Monday to Friday AEST) to request a paper application form.
If you apply from overseas:

More than one person applying for the same expense
You can apply for the same expense as another person if all people applying need to pay different parts of the same expense. If you and another person are applying for the same expense, each person will need to:
- complete and submit a separate application
- meet the eligibility criteria
- provide the applicable evidence (including documents showing the expense is in the names of all applicants).
The sum of the amount requested in the separate applications must not be more than the total amount of the invoice or quote.
What to expect after you apply

When reviewing your application, we will treat you respectfully and professionally. We will respond to your application fairly and in a timely manner as outlined in the ATO Charter.

We will assess your eligibility in accordance with the limited grounds for compassionate release of super. This normally occurs within 14 days (28 days for paper applications). You can check the progress of your application by using our self-help interactive voice response. You will need to provide your tax file number (TFN) and date of birth.

While assessing your application, we may contact you or third-party providers about the evidence you provided, particularly if there is incomplete or missing information. This includes validating expenses in the invoices and quotes, and the information provided in reports.

Once we have assessed your application, we will let you know the outcome by either phone or SMS and you will receive a letter in your myGov InboxExternal Link or via post if you apply on a paper form. You will also be able to access our letter on ATO online services under communication history. Our letter may take up to 72 hours to arrive (or more if it is sent by post).

If your application is successful, we will send a copy of the approval letter to your super fund. You will then need to contact them directly to release your super.

How to withdraw your application

You can’t amend your application after it has been submitted.

To withdraw an application, contact us and provide us with your application reference number.

If your application is approved

Release of your super

If your application is approved, once you receive our approval letter, you must contact your super fund to arrange release of your money.

You’ll need to provide your fund with a copy of our approval letter to process your payment. The letter can only be used to release one lump sum payment. You should wait for your approval letter before contacting your super fund to arrange for release of the approved amount.

Your super fund will automatically deduct the tax from your super account. See Tax on super benefits and Schedule 12 Tax table for superannuation lump sums for more information.

Super funds have their own processes and timeframes for releasing money from super. If you need to know how long it will take for your fund to release your money, you will need to ask them. We don’t have any role in determining how long this takes, and we can’t assist you in relation to the release after we send the approval letter.

After you have received your amount

After you have received your release from your super fund, you must pay the expenses that were approved with the amount released from your super fund.

You also need to keep your receipts for the paid expense as you may need to provide this information to us.

Your super fund will also issue you a payment summary that will display the amount released from your super balance and the tax withheld.

When lodging your income tax return for the relevant financial year, you need to include any taxable amounts shown on the payment summary. If any releases from your super aren’t pre-filled when completing your income tax return, you need to manually include these as per the payment summary. See Tax return instructions for more information.

If your application is not approved
You’ll receive a letter advising the reasons your application was not approved. We will also try to contact you via phone to explain our decision.

The reasons for non-approval generally fall into the following categories:
- You didn’t meet eligibility conditions. You or the expense you applied for are ineligible (because, for example, you paid the expense without borrowing money). Submitting further applications or a review request will result in the same outcome.
- If your application was not approved because you didn’t provide sufficient evidence, you need to submit a new application with all the required documentation. If you request a review of our decision without providing additional evidence, it will generally be unsuccessful.
- If your application was partially approved and you have new evidence, you need to submit a new application with the required documentation for the additional amount.
If you don’t understand our decision or believe we have made a mistake under the law, you can contact us so we can explain our decision.

Request a review of our decision

If after contacting us, you consider that we made a decision that was incorrect based on the information in your application, you can request a review of our decision.

Generally, you must submit your request within 14 days of the date of the original decision letter. In your review request, you need to specify why you believe our decision is incorrect.
For instructions on requesting a review, see Compassionate release of superannuation – request for review of decision.

MIL OSI News –
July 28, 2025
MIL-OSI New Zealand: Better support and oversight for third-party regulators

Source: Maritime New Zealand

Maritime NZ has established a dedicated Third-Party Oversight Team to work with third-party regulators and provide assurance to the maritime sector that the third-party regulatory system is performing well.

Third party regulators are entities or individuals, not employed by Maritime NZ, who perform regulatory functions under a delegation or other authorisation. Their functions, depending on the specifically stated delegation or authorisation, can relate to equipment, vessels, training, medical fitness, competency, crew conditions, plans etc.

Over recent years, various investigations have recommended stronger oversight of third-party regulators. The establishment of the Third-Party Oversight Team is a direct response to these.

The maritime sector, and the public, rightly expect that all regulatory functions are both efficient and effective, including third-party regulatory functions carried out on behalf of Maritime NZ. Likewise, third party regulators have the right to expect support and clear direction from Maritime NZ.

The new team’s role is to work with third party regulators to understand how well third-party functions are working, identify any issues that may exist, provide leadership on third-party regulation matters, and identify investments that could help to tackle significant issues.

Together proactively identifying where any significant issues may exist, allows actions to be taken before serious harm occurs.

Revenue from maritime levies is funding the new team because effective third-party regulatory functions benefit every participant in the maritime system.

Our priority is to focus on third-party functions of highest strategic importance and where we have evidence that challenges are present. To achieve this, the team has developed a three-year work programme, which focusses on the third-party regulators in priority order.

In the first year the team is focussing on marine surveyors (who carry out a very important safety and environmental protection role). Future work will include focussing on recognised organisations and then training colleges and examiners.

MIL OSI New Zealand News –

July 28, 2025
MIL-Evening Report: Want to save yourself from super scams and dodgy financial advice? Ask these questions
Source: The Conversation (Au and NZ) – By Angelique Nadia Sweetman McInnes, Academic in Financial Planning, CQUniversity Australia

Is there anything you can do to protect your superannuation from dodgy providers or questionable financial advice? And if someone rings you out of the blue and tempts you with a better return on your savings – what should you do?

Around 12,000 Australians with A$1.2 billion in retirement savings have been caught up in three collapsed or frozen funds: First Guardian, Shield and Australian Fiduciaries.

People have described being cold-called or seeing ads on social media, suggesting they could earn more by leaving their current super fund. Several financial advisers linked to these funds have now been banned for giving “inappropriate advice” to clients, containing “false and misleading statements”.

As a former financial adviser and now researcher, here are the questions I wish more people asked to screen out scammers and dodgy financial advisers faster – and places to seek help if you need it.

What do I do if someone calls with an unexpected sales pitch?

The first thing you need to know is that in Australia we have anti-hawking legislation. This prohibits people making cold calls or unsolicited face-to-face approaches for financial products, such as superannuation.

If you get a phone call like that, the official advice is now to hang up immediately. If they persist, you could say:

I didn’t request this cold call. Did you know you’re breaking the law and I can report you?

They will probably put the phone down! They know they’re not doing the right thing. If they keep talking, hang up.

Block their number. Tell a family member if you need help. If you’ve shared personal information, call your super fund or bank.

I’m thinking of switching super funds. What should I ask first?

Whether you’re talking to a super fund or a financial adviser, my first three questions would be about their fees, what’s known as “the 4Ps” – philosophy, people, process and performance – and risk profile.

What are the fees?

Don’t just look at a super fund’s returns: look closely at their fees.

Your super fund statement will disclose how much administration, insurance premiums, transactions, buy/sell spread and investment fees and costs are being deducted.

High fees charged by a trustee eat up your super balance over time. If a fund earns 7% annually and charges fees of 0.63% annually, then your actual return is only 6.37%.

Is the fund a good match on “the 4 Ps”?

Go to the provider’s website to understand whether the fund’s philosophy reflect your core beliefs about investing and risk.

Learn about the reputations of the people behind the fund who lead and invest your money.

Find out what process they use to select and manage investments. Finally, consider how well and consistently the fund has performed over the past five to ten years.

What’s the risk profile?

Super funds classify investment options into risk profiles (such as conservative, balanced or growth) to provide you with investments to match your risk tolerance and age.

You can find a fund’s risk profile on the fund’s website under investment options, in the product disclosure statement and target market determination.

How can I compare my super fund?

Want to check if your retirement savings are in an underperforming fund? For the past few years, the Australian Prudential Regulation Authority (APRA) has called out MySuper funds that aren’t performing to standard.

Compare funds with the Australian Tax Office’s YourSuper Comparison Tool.

How I can find out if a financial adviser’s been in trouble?

On advisers, you can investigate their reputation or past complaints at:
- MoneySmart’s financial advisers register to confirm registration, qualification and authorisations
- banned and disqualified register to see if they’re authorised to provide financial products and services
- register of disciplinary action for Financial Advice Association members who’ve been investigated by the conduct review committee.
If you’re comfortable using OpenAI, such as ChatGPT or CoPilot, you can try searching with the following prompts.
- “Can you find any complaints or disciplinary actions against (name of adviser/fund)?”
- “What is the public reputation of (adviser/fund) in financial forums or news?”
- “Has (adviser/fund) been mentioned in any ASIC enforceable actions, bans or media reports?”
More action promised, but not yet delivered

There are echoes in what’s allegedly happened with First Guardian and Shield of Storm Financial’s collapse in 2009, which also hit thousands of people.

There are bad apples in every industry. Whether it’s in finance or medicine, it’s often colleagues who know who the dodgy operators are. Then it’s a question of whether anyone does anything about it.

In the case of First Guardian and Shield, other financial advisers helped raise the alarm – unfortunately several years before the corporate watchdog, the Australian Securities and Investments Commission, acted.

The commission says they’re now working with the federal government on more “reform options”. But that won’t help the thousands of people currently without access to their retirement savings, uncertain how much of those funds they’ll recover.

You can seek free counselling and advice from the National Debt Helpline (1800 007 007); Mob Strong Debt Helpline (1800 808 488) for Aboriginal and Torres Strait Islander people; or the Consumer Action Law Centre.

Disclaimer: this is general information only and not to be taken as financial advice.

Angelique Nadia Sweetman McInnes received funding from the Accounting and Finance Association of Australia and New Zealand and Central Queensland University. She is presently on a panel in her academic capacity assisting the Financial Advice Association of Australia (FAAA) review and update their Professional Standards. She is also a council member of the FAAA Financial Planning Education Council. Angelique was an authorised representative (practicing financial adviser) from 2009 to 2012.

– ref. Want to save yourself from super scams and dodgy financial advice? Ask these questions – https://theconversation.com/want-to-save-yourself-from-super-scams-and-dodgy-financial-advice-ask-these-questions-261756
MIL OSI Analysis – EveningReport.nz –
July 28, 2025
MIL-Evening Report: The ghost of Robodebt – Federal Court rules billions of dollars in welfare debts must be recalculated

Source: The Conversation (Au and NZ) – By Christopher Rudge, Law lecturer, University of Sydney

A recent landmark court decision could have significant ramifications for several million social security recipients.

The ruling means the federal government will need to recalculate more than A$4 billion in debts owed to the Department of Social Services, which administers Centrelink.

Some of the debts – which occurred due to overpayment of benefits – stretch back decades.

Reminiscent of Robodebt, the problem occurred because an unlawful method – income apportionment – was used to calculate the money Centrelink claimed it was owed.

The judgement

From the early 1990s until 2020, more than 5.3 million welfare debts were calculated using income apportionment.

In the test case Chaplin v Secretary, Department of Social Services, the full Federal Court approved a method proposed by the government to recalculate the debts.

The court was not asked whether the debts were unlawful – a point the department had already conceded – but whether its remedy was legally sound. In a two-judge majority, the court ruled it generally was.

Following the judgement, the department swiftly resumed debt recovery, which had been paused in 2023, pending the legal decision. It said in a statement:

now there is certainty to the legal position, assessments will recommence in line with the court’s decision.

The scale of the problem

The unlawful debts are worth $4.31 billion in total, and affect almost three million Australians. About 91% of these debts – $3.93 billion – has already been repaid to Centrelink.

Another 170,000 debts – totalling $347 million – remain outstanding.

All the debts – either repaid or still owing – must be recalculated using the revised method approved by the court.

According to the government, the median debt is $330 and has been owed for 19 years, on average.

But the judgement does not compel the government to actually recover the money. Some media reports suggest a waiver is being considered.

For its part, the government says it will “evaluate” the court decision and develop a “suitable response”.

What is income apportionment?

An internal anti-fraud policy meant Centrelink was obliged to calculate a person’s income when it was “earned” rather than “received”.

This led to the use of income apportionment – essentially an educated guess about a person’s fortnightly earnings when their pay cycle didn’t align with their income reporting period.

This process, which typically produced overpayments to recipients, spread income outside an instalment period, which was contrary to the applicable law. It also attributed earnings to a person for days and fortnights they hadn’t worked.

Income apportionment was discontinued in 2020. Three years later, the Commonwealth ombudsman found the method was unlawful.

Is this different to Robodebt?

While Social Services has sought to distinguish income apportionment from Robodebt, the two methods of calculating debt are comparable.

Both attributed a person’s daily income beyond the timeframe permitted by law.

But there are differences in source and scale.

Where apportionment was personalised by using individual customer payslips, Robodebt used Australian Tax Office records to raise debts en masse.

Significantly, while the ombudsman said the department’s understanding of the law relating to apportionment was “incorrect”, it was also “genuinely held”.

On the other hand, the infamous Robodebt scheme was designed to ramp up debt clawbacks. Claims of misfeasance in public office continue to be litigated.

Other troubling overlaps remain.

Many individuals affected by apportionment debts raised after 2015 will be the same people served with Robodebt notices.

Evidentiary burden

A troubling aspect of the test case was the suggestion by the majority judges – citing High Court precedent –
that the evidentiary burden could shift to the welfare recipient when overpayments are believed to occur through “wrongdoing”.

This could force an individual to disprove their alleged debt if a decision-maker concluded the recipient had accidentally under-reported – as occurred in the test case – and a lack of evidence made it difficult for the government to prove its allegation.

The finding arguably runs counter to the Robodebt Royal Commission’s observation that most welfare recipients lack the power to disprove a debt because their historical records are unavailable.

The dissenting judge in the case rejected the government’s proposed recalculation method, finding it “not proper” for recovery action to be taken without probative evidence.

He said the majority decision meant Centrelink could reassess debts in the future after evidence had been lost, and recipients would be powerless to disprove them.

Expensive fix

The administrative burden of reassessing these unlawful debts is immense.

Late last year, a team of 150 public servants, each costing $117,400 per annum, was assigned to rectify income apportionment.

Their internal sampling revealed 64% of people issued debt bills were overcharged, 29% were undercharged, while 4% are owed a total refund.

The remediation process has been chaotic.

In the year following the ombudsman’s report, recipients lodged 531 appeals and made 530 complaints, highlighting the human impact of income apportionment.

But in a five-month period, a mere 83 cases have been finalised.

Controversially, Social Services offered to process debts on request, contrary to a provisional finding of the Administrative Appeals Tribunal, which dismissed the method being used by the department.

Political choice

While the Federal Court has seemingly given the government a legal victory, the ultimate outcome will be costly – especially if the debts are waived.

The court ruling requires recipients be afforded “procedural fairness”, meaning resource-intensive investigations will need to be undertaken into the millions of cases yet to be reviewed.

The final price tag is yet unknown. In the 2025–26 budget, income apportionment was recorded as a “contingent liability – unquantifiable”.

Almost all of the outstanding debts would have already been resolved if the government had implemented the Robodebt Royal Commission recommendation that welfare overpayments should not be pursued if they are more than six years old.

The court’s decision also fails to address the 159 Australians believed to have been criminally prosecuted over unlawful debts since 2018. These people – and likely many more before that year – may have been convicted on defective evidence.

The response to these issues will be a test for the government.

Has it learned the lessons of previous egregious mistakes, or will it allow the ghost of Robodebt to continue to haunt our welfare system?

Christopher Rudge does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

– ref. The ghost of Robodebt – Federal Court rules billions of dollars in welfare debts must be recalculated – https://theconversation.com/the-ghost-of-robodebt-federal-court-rules-billions-of-dollars-in-welfare-debts-must-be-recalculated-261543

MIL OSI Analysis – EveningReport.nz –

July 28, 2025
MIL-OSI Africa: Counterfeit goods worth R156m seized

Source: Government of South Africa

The South African Police Service (SAPS) has seized counterfeit and illicit goods worth more than R156 million during operations in Pretoria, Mbombela and Limpopo.

In the past three weeks, the integrated team executed search-and-seizure warrants in terms of the Counterfeit Goods Act 37 of 1997, as well as the Customs and Excise Act at targeted shops in Marabastad, Mokopane, Mbombela, Bela Bela, Mookghopong, and Modimolle.

“During these takedowns, the team seized more than 23 000 items imitating high-end designer brands that include clothing, shoes, bags, caps, and watches as well as counterfeit jewellery, sunglasses, perfumes, cosmetics, and pharmaceuticals.

“Also amongst the seized items are sports apparel that bears the Springboks trademark and other well-known brands. These counterfeit items were seized outside Mbombela stadium and Loftus stadium respectively during recent Springbok rugby games against visiting countries. The team also confiscated illicit cigarettes valued at over R50 000,” SAPS said in a statement on Saturday.

The operations were led by the National Counterfeit and Illicit Goods unit, with support from Public Order Policing (POP), the South African Revenue Services (SARS) Customs and Enforcement team, counterfeit depot officials, brand protectors, and private security personnel.

“SAPS remains committed to eradicate the illegal trade in counterfeit goods in an effort to protect consumers, support legitimate businesses, and ensure the integrity of South Africa’s economy.

“The Counterfeit Goods Act aims to combat the trade in counterfeit goods by protecting trademarks, copyrights, and certain mark owners from the unlawful use of their intellectual property on goods and preventing such counterfeit goods from entering the market,” the SAPS said. –SAnews.gov.za

MIL OSI Africa –

July 28, 2025
MIL-OSI USA: United States Disrupts North Korea Revenue Generation, Offering Rewards of Up to $15 Million

Source: United States Department of State (2)

Office of the Spokesperson

United States Disrupts North Korea Revenue Generation, Offering Rewards of Up to $15 Million

Media Note

July 24, 2025

Today, the Departments of State, Justice, and the Treasury are executing coordinated, decisive actions to keep Americans safe from North Korea’s malicious and illicit revenue generation schemes. The Department of State’s Transnational Organized Crime Rewards Program (TOCRP) is offering rewards totaling up to $15 million for information leading to the arrests and/or convictions, in any country, of North Korean nationals Sim Hyon-sop and six co-conspirators involved in these schemes.

North Korea’s revenue generation schemes—which include cryptocurrency theft, illicit information technology (IT) work, trafficking in counterfeit goods, oil smuggling, and other transnational criminal activities—often target U.S. companies and U.S. citizens to raise funds for North Korea’s dangerous and unlawful WMD and ballistic missile programs, which threaten the U.S. homeland and stand in contravention of UN and U.S. sanctions. In many cases, these ballistic missiles have been unlawfully transferred to Russia, where they have been used to strike Ukrainian territory, including Kyiv.

Today’s actions illustrate the U.S. government’s commitment to mitigating such threats posed by North Korea to protect U.S. companies, the U.S. financial system, and American citizens. The United States will not stand idly by while North Korea profits from criminal activity to fund its destabilizing actions.

Sim Hyon-Sop and six co-conspirators were charged for their role in illicit activities to buy and sell tobacco from North Korea to gain access to U.S. dollars. The Department of State’s reward offers include an increase of up to $7 million for Sim Hyon-Sop, up to $3 million each for Myong Chol-Min and Kim Se-Un, and up to $500,000 each for Kim Yong-Bok, Kim Chol-Min, a/k/a “Jack,” Ri Tong-Min, a/k/a “Elvis,” and Ri Won-Ho.

Sim Hyon-Sop and some of his co-conspirators—including Kim Se-Un—have also been involved in illicit IT worker schemes. North Korea dispatches thousands of IT workers abroad to orchestrate fraudulent IT work, often from Russia and China. Today, the Department of the Treasury is designating Korea Sobaeksu Trading Company, which has previously deployed IT workers to Vietnam, and three North Korean nationals, including Kim Se Un, Myong Chol Min, and Jo Kyong Hun, who have been involved in illicit revenue generation schemes. North Korea’s overseas networks provide it with access to technology, illicit finance networks, and facilitators to support its revenue generation to fund UN and U.S. sanctioned entities including the Munitions Industry Department and Ministry of Atomic Energy and Industry. The Department of State continues to engage foreign countries that support North Korean IT workers in order to prevent the targeting of Americans by North Korean revenue generation schemes.

In addition, Christina Marie Chapman, an American citizen, will be sentenced today in the District of Columbia for her role in a North Korean IT worker scheme that defrauded more than 300 U.S. companies, including Fortune 500 corporations. North Korean IT workers specifically target remote jobs with U.S. companies due to the high salaries, which they remit back to North Korea to fund the unlawful production of WMD and ballistic missiles.

Today’s individual reward offers are authorized by the Secretary under the TOCRP, which supports law enforcement efforts to disrupt transnational crime globally and bring fugitives to justice. If you have information, please send tips to the FBI via phone/text/WhatsApp at +1-480-695-1388. If you are located outside of the United States, you can also visit the nearest U.S. embassy or consulate. If you are in the United States, you can also contact the local FBI field office.

THE IDENTITIES OF ANYONE PROVIDING TIPS WILL BE KEPT STRICTLY CONFIDENTIAL. Per 22 U.S.C. section 2708(f), government officials and employees are not eligible for rewards if information is provided in the performance of official duties.

Separately, the State Department’s Rewards for Justice (RFJ) national security program has a standing reward offer of up to $5 million for information that leads to the disruption of financial mechanisms of persons engaged in certain activities that support the North Korean government and its sanctions evasion. Rewards can be paid for actionable information regarding IT worker schemes, money laundering, cyber activity, and other illicit activities that support WMD proliferation and missile development. More information on RFJ’s North Korea reward offers is available here.

MIL OSI USA News –

July 27, 2025
Yellow alert in nine Kerala districts as heavy rain causes widespread disruption

Source: Government of India

Source: Government of India (4)

A yellow alert has been issued in nine districts of Kerala — Ernakulam, Idukki, Thrissur, Palakkad, Malappuram, Kozhikode, Wayanad, Kannur, and Kasaragod — as the state continues to experience intense rainfall and strong surface winds.

The India Meteorological Department (IMD) has warned that the heavy downpour is likely to persist until July 30 due to a low-pressure area over the Bay of Bengal.

The IMD has also predicted strong surface winds, reaching speeds of 50–60 kmph over Kerala and Lakshadweep on July 27, and 40–50 kmph between July 28 and 29.

Very heavy rainfall (12–20 cm in 24 hours) is expected at isolated locations, while heavy rainfall (7–11 cm) is likely in various parts of the state through July 30. A high alert has been sounded for hilly and coastal regions. The relentless rain has triggered damage across the state — trees have been uprooted, houses have collapsed, vehicles have been damaged, and roads have been affected. In many areas, the situation has led to power outages and traffic disruptions.

Mudslides were reported in several highland regions, including Makkimala and Arala.

Speaking to the media, State Revenue Minister K. Rajan said the rainfall is expected to ease from Monday as the low-pressure system weakens. He confirmed that 163 houses have been fully destroyed in the recent spell of rain and assured that compensation will be provided to all affected families.

With rivers overflowing, several dams, including Sholayar and Kakkayam, have been opened. An orange alert has been issued for major rivers such as the Manimala and Pampa in Pathanamthitta, Vamanapuram in Thiruvananthapuram, Pallikkal in Kollam, Achankovil in Alappuzha, Thodupuzha in Idukki, Chalakudy in Thrissur, Valapattanam in Kannur, and the Kabani in Wayanad.

Residents living along riverbanks have been urged to stay vigilant and move to safer locations if necessary.

In Ernakulam and Alappuzha districts, several homes have been flooded due to the continuous rainfall. Two relief camps have been opened in Ernakulam to accommodate those displaced by the floods.

—IANS

July 27, 2025
MIL-OSI USA: Congressman Valadao Joins Entire California GOP Delegation in Releasing a Statement on Governor Newsom’s Move to Overturn the Will of Voters

Source: United States House of Representatives – Congressman David G. Valadao (California)

Congressman Valadao Joins Entire California GOP Delegation in Releasing a Statement on Governor Newsom’s Move to Overturn the Will of Voters

Today, Congressman David Valadao (CA-22) released the following statement alongside the entire California Republican Congressional delegation following Governor Newsom’s press conference announcing his intent to disenfranchise California voters and overturn the independent redistricting commission.

WASHINGTON – Today, Congressman David Valadao (CA-22) released the following statement alongside the entire California Republican Congressional delegation following Governor Newsom’s press conference announcing his intent to disenfranchise California voters and overturn the independent redistricting commission:

“In 2010, California voters passed the VOTERS FIRST Act by over 20 points, giving the independent California Citizens Redistricting Commission the sole authority of drawing California’s congressional districts. Today Governor Newsom and California Democrats have announced that they will attempt to take power away from the Citizens Commission and place it back into the hands of Sacramento politicians to further the political agenda of Gavin Newsom.

The Commission received feedback from tens of thousands of Californians as to their communities of interest which shaped the current set of congressional districts. Districts that represent the local communities that they live in rather than the whims of one political party. A partisan political gerrymander is NOT what the voters of California want as they clearly stated when they passed the VOTERS FIRST Act and participated in the Citizens Redistricting Commission process. As it stands, Republicans only hold nine congressional seats out of 52 despite winning 38% of the vote statewide.

It’s a shame that Governor Newsom and the radical Left in Sacramento are willing to spend $200 million on a statewide special election, while running a deficit of $20 billion, in order to silence the opposition in our state.

As a Delegation we will fight this disenfranchisement of California voters by whatever means necessary to ensure the will of the people continues to be reflected in redistricting and in our elections.”

###

MIL OSI USA News –

July 26, 2025
MIL-OSI USA: Murphy, Schatz Introduce New Legislation to Improve Wages, Operations Transparency for Rideshare Drivers, Delivery App Workers
US Senate News:
Source: United States Senator for Connecticut – Chris Murphy

July 25, 2025
WASHINGTON–U.S. Senator Chris Murphy (D-Conn.), a member of the U.S. Senate Health, Education, Labor and Pensions (HELP) Committee, on Thursday joined U.S. Senator Brian Schatz (D-Hawaii) in introducing the Empowering App-Based Workers Act, new legislation to improve transparency on how app companies operate and help boost wages for rideshare drivers and delivery app workers.

“App-based companies purposely keep gig workers in the dark so they can grossly underpay them while also price gouging consumers,” said Murphy. “Our bill forces these companies to be transparent with workers about what they will be paid and establishes wage minimums so they can’t exploit loopholes to mislead and steal from their workers.”

“Every day rideshare drivers and delivery app workers work long hours and travel many miles to make a living, often without knowing how much money they’ll make. Our bill would shed some light on how apps determine work assignments and pay, ensuring workers are treated and paid fairly,” said Schatz.

Millions of workers across multiple industries, report to work by turning on an app. These platforms collect data from both workers and consumers to shape working conditions, evaluate workers, and make work-related decisions, including decisions on how much to pay a worker, which workers get which assignments, and whether, when, or for how long a worker will be suspended or ‘deactivated.’ All this is done with systems that are not transparent to workers, consumers, or regulators, creating information imbalances that mask wage theft, discrimination, and price-gouging.

The Empowering App-Based Workers Act would create a level playing field for workers managed by digital labor platforms by:

Requiring disclosure of electronic monitoring and automated decision systems uses, including how they are used to determine pay and other work decisions;

Providing itemized receipts to workers and consumers after every work assignment;

Providing workers receive weekly pay statements with relevant information on their compensation;

Ensuring rideshare workers receive at least 75 percent of the amount paid by consumers; and

Stopping platforms from using interfaces that contain unfair or deceptive information on compensation.

The bill is supported by the ACE Collaborative of New Virginia Majority, Action Center on Race and Economy, AFL-CIO, Athena, Center for Law and Social Policy, Color Of Change, Colorado Independent Drivers United, Connecticut Drivers United, Coworker, Data & Society, Drivers Union Washington/Teamsters Local 117, Economic Policy Institute, Fair Work Center, Groundwork Collaborative, Hawai‘i Workers Center, Los Deliveristas Unidos, Minnesota Uber/Lyft Drivers Association, Make the Road New Jersey, National Women’s Law Center, National Employment Law Project (NELP), New York Taxi Workers Alliance, New School Center for NYC Public Affairs, NLAN/GLOW, National Partnership for Women & Families, National Women’s Law Center Action Fund, Open Markets Institute, Portland Drivers United, Rideshare Drivers United, PowerSwitch Action, Service Employees International Union (SEIU), Tech Equity Collaborative, Tennessee Drivers Union, The People’s Lobby, Towards Justice, United Food and Commercial Workers International Union, and Working Washington.

Full text of the bill is available HERE.
MIL OSI USA News –
July 26, 2025
MIL-OSI: BlackRock® Canada Announces Final July Cash Distributions for the iShares® Premium Money Market ETF

Source: GlobeNewswire (MIL-OSI)

TORONTO, July 25, 2025 (GLOBE NEWSWIRE) — BlackRock Asset Management Canada Limited (“BlackRock Canada”), an indirect, wholly-owned subsidiary of BlackRock, Inc. (NYSE: BLK), today announced the final July 2025 cash distributions for iShares Premium Money Market ETF. Unitholders of record on July 28, 2025, will receive cash distributions payable on July 31, 2025.

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

Fund Name Fund
Ticker Cash
Distribution
Per Unit

iShares Premium Money Market ETF CMR $0.121

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

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

About iShares ETFs
iShares unlocks opportunity across markets to meet the evolving needs of investors. With more than twenty years of experience, a global line-up of 1600+ exchange traded funds (ETFs) and US$4.7 trillion in assets under management as of June 30, 2025, iShares continues to drive progress for the financial industry. iShares funds are powered by the expert portfolio and risk management of BlackRock.

iShares^® ETFs are managed by BlackRock Canada.

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

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

The MIL Network –

July 26, 2025
MIL-OSI USA: Rep. Pettersen Joins Call Demanding Answers from Federal Agencies on DOGE Cut

Source: United States House of Representatives – Representative Brittany Pettersen (Colorado 7th District)

WASHINGTON – Today, U.S. Representative Brittany Pettersen (CO-07) joined a call to the Social Security Administration (SSA) and Internal Revenue Service (IRS), demanding answers about the impacts that mass firings, or reductions in force (RIFs), will have on casework processing for constituents.

Casework is a crucial service provided by congressional offices for constituents to raise their concerns with tax refunds, Social Security payments, passports, and other benefits that they are owed from federal agencies. After recent layoffs, congressional caseworkers are receiving bounce-back emails and no-replies from federal agencies leaving many cases delayed and unresolved.

“My office has heard from countless seniors, families, and small businesses who can’t get anyone at the IRS or Social Security Administration to pick up the phone,” said Rep. Pettersen. “Our seniors, communities, and families rely on Social Security to put a roof over their heads, pay for their medications, and for basic needs. Any issues with these benefits can impact people’s health, safety, and wellbeing. It’s unacceptable people have been unable to get a hold of anyone to help at these taxpayer-funded agencies. The reckless destruction of our federal workforce makes it so that people cannot get access to the benefits they rely on or get answers to their questions – I’m deeply worried about the reprehensible impact on our communities but especially on our seniors who live on a fixed income. We’re here to support them and advocate for them any way that we can.”

Earlier this year, the Social Security Agency rolled out its plan to cut an estimated 7,000 jobs nationwide, raising concerns about staffing and capability of disbursing retirement and disability benefits. Additionally, the Trump administration has pushed to cut as much as 50% of staff from the IRS. These deep staffing cuts threaten to delay or disrupt critical services, leaving seniors without timely access to their benefits and taxpayers without the support they need to navigate the system.

Rep. Pettersen joined 50+ House Democrats in letters to the IRS and SSA. The full text of the letter to the IRS can be found HERE and full text of the SSA can be HERE.

###

To access downloadable, high-quality photos, click here. To stay up-to-date on what Pettersen is doing in Congress, follow her on Twitter here, Facebook here, or Instagram here. Residents can also sign-up for her e-newsletter subscription here.

MIL OSI USA News –

July 26, 2025
MIL-OSI Security: U.S. Attorney’s Office Forfeited and Returned More Than $37 Million to Crime Victims
Source: US FBI

LAS VEGAS – United States Attorney Sigal Chattah for the District of Nevada announced today that, from October 1, 2024, to July 16, 2025, more than $37 million was forfeited through asset forfeiture actions and returned to victims of crime. Funds forfeited and deposited into the Department of Justice Assets Forfeiture Fund may be used to compensate victims and restore losses caused by criminal conduct.

A total of $37,236,606.37 was forfeited and of this amount:
- In December 2024, a victim received $3,443,286.03.
- In April 2025, the Small Business Administration received $531,308.46 of the fraudulently obtained Paycheck Protection Program (PPP) loans.
- In May 2025, the Small Business Administration received $1,068,123.94 of the fraudulently obtained PPP loans.
- In July 2025, a victim received $32,193,787.94.
“The Asset Forfeiture and Financial Litigation Units of the U.S. Attorney’s Office, in coordination with our law enforcement partners and the Department of Justice’s Money Laundering and Asset Recovery Section, worked diligently to forfeit these funds and return them to victims,” said U.S. Attorney Chattah. “Our office remains committed to holding offenders financially accountable and to restoring victims. I commend the exceptional efforts of our Asset Forfeiture Unit and professional staff in pursuing justice and upholding the rule of law.”

“The successful return of these funds is due to the coordinated efforts of the FBI, local law enforcement, and the US Attorney’s office,” said Special Agent in Charge Amir Ehsaei for the FBI Las Vegas Division. “This serves as an important reminder of our unwavering commitment to pursuing justice for victims and their families. Forfeiting ill-gotten gains removes financial resources from criminals and serves as a powerful tool to restore victims. It is highly recommended to report scams and frauds promptly.”

“IRS Criminal Investigation’s Phoenix Field Office is proud to see our special agents’ hard work result in the recovery of millions in stolen COVID relief funds and real, tangible justice for victims of other financial crimes,” said Special Agent in Charge Carissa Messick, IRS Criminal Investigation (IRS-CI) Phoenix Field Office. “Financial crime can be devastating to victims. That’s why it’s crucial for our agency to continue uncovering such crimes through the leveraging of our financial expertise and investigative techniques. IRS-CI exists to protect American taxpayers and ensure the integrity of our tax system, and these figures today are just a portion of the amazing results we are seeing throughout the nation.”

The PPP is one of two programs that was developed through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. PPP provides funding to businesses through loans for payroll costs, interest on mortgages, rent and utilities. PPP allows the interest and principal on loans to be forgiven if the business spends proceeds on certain expense items within a designated time and uses a certain percentage of the loan on payroll expenses.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.

###

MIL Security OSI –
July 26, 2025
MIL-OSI Security: More Than $2.5 Million Recovered from Vancouver Real Estate Developer Convicted for Fraudulently Obtaining COVID-Relief Funds

Source: US FBI

PORTLAND, Ore.—The U.S. Attorney’s Office for the District of Oregon announced today that more than $2.5 million was collected from a real estate developer and part-time resident of Vancouver, Washington, for fraudulently obtained Covid-relief program funds.

According to court documents, between 2020 and 2022, Michael James DeFrees, 63, submitted loan applications and obtained Economic Injury Disaster Loans (EIDLs) and Paycheck Protection Program (PPP) loans under false pretenses. In the applications, DeFrees falsely indicated that he had never been convicted of any disqualifying criminal offense or recently placed on parole or probation. In reality, at the time he submitted the applications, DeFrees was on probation following a 2017 felony conviction in the Western District of Washington for falsifying records in a bankruptcy proceeding. After receiving the loan payouts, DeFrees laundered a portion of the proceeds through a business entity not listed in his applications and spent the funds on personal expenses.

On February 9, 2024, DeFrees was sentenced to 21 months in federal prison for fraudulently obtaining Covid-relief program funds and laundering a portion of the proceeds. DeFrees was also ordered to forfeit $1.2 million and pay $1,346,481 in restitution to the U.S. Small Business Administration (SBA).

Soon after, the Asset Recovery Unit of the U.S. Attorney’s Office filed liens against DeFrees’s real properties and obtained writs of execution to levy and sell his personal assets, including a 2016 Duckworth boat, a 2006 Ford F350, a 2006 MTI racing boat, two Honda Yeti snow bikes, and a 2011 Land Rover. The Asset Recovery Unit recovered the full restitution and forfeiture judgment amounts, more than $2.5 million, from the sale of DeFrees’s seized assets and one real property. The funds collected for restitution will be returned to the SBA, and funds collected to satisfy the forfeiture judgment will go to the Assets Forfeiture Fund, which pays for expenses related to the seizure, management, forfeiture and disposal of forfeitable assets.

“Defendants who attempt to shield their assets from collection do so at their own peril, as the U.S. Attorney’s Office will aggressively pursue full payment from defendants who owe restitution to their victims,” said Katie de Villiers, Chief of the Asset Recovery Unit for the District of Oregon. “The money recovered for victims—here, the taxpayers—is a direct result of the dedicated investigators, paralegals, and attorneys who work diligently, day in and day out, to ensure justice through their collection efforts.”

This case was investigated by the SBA Office of Inspector General, IRS-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration (TIGTA), and the FBI. Enforcement of the restitution order and collection of the forfeiture judgment was handled by Alex DeLorenzo, Assistant U.S. Attorney for the District of Oregon. The United States Marshals Service levied assets subject to the writs of execution and coordinated with auction companies across the country to liquidate the seized assets.

MIL Security OSI –

July 26, 2025

MIL-OSI Security: Former New Jersey Resident Pleads Guilty to Wire Fraud and Conspiracy to Commit Wire Fraud for Telemarketing Scheme Targeting Timeshare Owners Over the Age of 55

Source: US FBI

CAMDEN, N.J. – A former New Jersey resident recently pled guilty to wire fraud and conspiracy to commit wire fraud for his participation in a telemarketing scheme to defraud timeshare owners over the age of 55 from 2016 to 2020, U.S. Attorney Alina Habba announced today.

James Toner, a/k/a “Jason Turner,” a/k/a “James Turner,” a/k/a “Jason Thomas,” 43, of Lake Mary, Florida pleaded guilty today, before the Hon. Karen M. Williams, U.S. District Judge, Camden, to Counts One and Two of a 13-count Indictment, charging conspiracy to commit wire fraud in connection with telemarketing that targeted or victimized timeshare owners over the age of 55 (Count One) and wire fraud in connection with telemarketing that targeted or victimized timeshare owners over the age of 55 (Count Two). Toner’s sentencing is scheduled for December 2, 2025.

Toner was previously charged by indictment along with William O’Hanlon, a/k/a “Patrick Burns,” a/k/a “William Burns,” 61, Karen Stefanowski, 63, and William Chiusano, Jr., then-48, of Laguna Niguel, California. Chiusano is now deceased, and charges against him have been dismissed. O’Hanlon and Stefanowski previously pleaded guilty before Judge Williams to their roles in fraudulent telemarketing schemes from 2016 to 2023 on May 9, 2025 and April 30, 2025, respectively.

In addition, Alex Klemash, 32, of Williamstown, New Jersey, Michael Lambe, 45, of Mullica Hill, New Jersey, and La’Tresa Jackson, 59, of Lindenwold, New Jersey, previously pleaded guilty before Judge Williams on March 8, 9, and 13, 2023, respectively, to related Informations charging them with conspiracy to commit wire fraud in connection with the 2016 to 2020 telemarketing scheme.

Accordingly, all living defendants charged for their roles in the telemarketing scheme from 2016 to 2020 have now pleaded guilty. The sentencings for the defendants are currently scheduled as follows:

La’Tresa Jackson	September 25, 2025
Alex Klemash	September 23, 2025
Michael Lambe	September 30, 2025
William O’Hanlon	September 24, 2025
Karen Stefanowski	September 4, 2025
James Toner	December 2, 2025

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

The wire fraud conspiracy and wire fraud charge to which Toner pleaded guilty arise out of his participation in a timeshare fraud scheme operated through businesses WILLIAMS ANDREWS BURNS LLC, RESORT BNB, INC., and WILLIAMS & BURNS, INC. (collectively referred to as “WAB”). As part of his plea agreement, Toner admitted that he was a manager and supervisor at WAB.

From in or about October 2016 through in or about October 2020, Toner and additional co-conspirators (collectively referred to as “Conspirators”), engaged in a scheme to financially enrich themselves by selling fraudulent services to timeshare owners offered through WAB, including offering to rent and/or buy the owners’ timeshares under false and fraudulent pretenses or representations, and offering to recover monies timeshare owners had previously paid in connection with other scams. The Conspirators obtained lists of timeshare owners and their contact information, and cold-called them to pitch their various services in return for upfront fees.

The Conspirators made numerous false and misleading statements to the timeshare owners, including falsely stating that the timeshare owners had “bonus” timeshare weeks which WAB would rent for them in return for an upfront fee, and falsely guaranteeing thousands of dollars in rental income for the timeshare owners. Once the timeshare owners had signed up and paid their fees for the phony rentals services, the Conspirators also generally pitched collections/recovery services, offering to obtain refunds of monies previously paid by the timeshare owners in other fraudulent scams, in return for fees. Again, the Conspirators made numerous false and misleading statements in many instances to both timeshare owners and the banks that issues their credit cards. One of the fraudulent pitches used by the Conspirators was to falsely claim that the timeshare owner had been identified as a victim of timeshare fraud and was entitled to monies that were held by a government entity, often referred to as the attorney general’s office or the FTC (Federal Trade Commission), and that WAB would obtain those monies for the timeshare owner in return for the payment of an upfront fee. The Conspirators also offered additional fraudulent services to timeshare owners, including occasionally offering timeshare buyouts/take-overs.

Toner agreed to make restitution for any proven losses to victims of WAB.

Each count of conspiracy to commit wire fraud and wire fraud is punishable by a maximum of 30 years in prison, including an enhancement of 10 years in prison for committing such fraud via telemarketing that targeted persons over the age of 55 or victimized 10 or more persons over the age of 55. The sentences on each count may run consecutively. Each offense also carries a potential fine of the greater of $250,000,or twice the gross gain or loss from the offense, and the defendant may be sentenced to a term of supervised release after any term of imprisonment imposed.

U.S. Attorney Habba credited agents of the FBI’s Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne A. Jacobs; special agents of the IRS Criminal Investigations, Newark Field Office, under the direction of Special Agent in Charge Jenifer Piovesan; and special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge, Cooperative Disability Investigations – Eastern Region, Conor Washington, with the investigation leading to the guilty plea.

The government is represented by Assistant U.S. Attorneys Elisa T. Wiygul and Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.

###

Defense Counsel:

Lee Vartan, Esquire and Melissa Wernick, Esquire for William O’Hanlon

Zach Intrater, Esquire for Karen Stefanowski

Megan Davies, Esquire for James Toner

Michael Baldassare, Esquire for La’Tresa Jackson

Perry DeMarco, Sr., Esquire for Alex Klemash

Ira M. Slovin, Esquire for Michael Lambe

MIL Security OSI –

July 26, 2025

MIL-OSI Africa: International Monetary Fund (IMF) Executive Board Concludes 2025 Article IV Consultation with Equatorial Guinea and IMF Management Approves the First and Second Reviews Under the Staff Monitored Program for Equatorial Guinea

Source: APO

The Executive Board of the International Monetary Fund (IMF) concluded today the 2025 Article IV consultation with Equatorial Guinea. IMF Management approved in June the combined first and second reviews under the Staff Monitored Program (SMP) and a 12 month SMP extension.
Equatorial Guinea registered a mild economic recovery in 2024, but the economy is projected to grow weakly and a drain on regional reserves is expected to continue in the medium term as hydrocarbon production declines. The banking sector is showing clear signs of improvement.
Performance under the program has been strong, with significant reforms implemented and a substantial fiscal adjustment that met the SMP conditionality. However, contrary to longstanding commitments, the authorities decided not to publish asset declarations of public officials. The program extension will provide the authorities with an opportunity to complete an alternative governance reform measure aimed at strengthening transparency in the extractive sector.

The Executive Board of the International Monetary Fund (IMF) completed the Article IV Consultation for Equatorial Guinea.[1] IMF Management approved the completion of the first and second reviews and a 12-month extension of the Staff Monitored Program (SMP) for Equatorial Guinea on June 25, 2025. The authorities have consented to the publication of the Staff Report prepared for this consultation.[2]

Equatorial Guinea registered a mild economic recovery in 2024, growing by 0.9 percent following a strong contraction in 2023. However, non-hydrocarbon GDP growth slowed in 2024 to 1.3 percent, and the economy is expected to grow only modestly in the medium term as hydrocarbon production declines. Inflationary pressures have persisted, with inflation increasing from 2.5 percent in 2023 to 3.4 percent in 2024.

The banking sector showed clear signs of improvement in 2024 but remains undercapitalized. The average capital adequacy ratio of the system is marginally below the regulatory minimum, but substantially higher than at the end of 2022.

The authorities’ substantial fiscal adjustment in 2024 improved the non-hydrocarbon primary balance from -22.3 percent of non-hydrocarbon GDP in 2023 to -17.0 percent in 2024. Public debt decreased from 39.1 percent to 36.4 percent of GDP. Equatorial Guinea’s contribution to foreign reserves at the regional central bank remained negative in 2024, following a reserve loss in 2023. The authorities planned further fiscal adjustment will aim to keep public debt below 50 percent of GDP despite the projected decline in hydrocarbon revenues and restore external balance in the medium term.

The authorities have implemented substantial reforms over the past year in the context of the SMP. The significant fiscal adjustment in 2024 helped initiate stabilization of the public debt dynamics and restoration of external balance. They enacted a new tax law that broadens the tax base, prepared a plan to phase out fuel subsidies, began making payments under a new arrears clearance strategy and reformed the customs administration. The authorities took concrete steps toward restoring the health of the financial sector. In an effort to improve governance and transparency, they also developed an AML/CFT strategy and published contracts in the extractive sector and an audit of spending following the accidental explosions in Bata in 2021.

The authorities’ policies have allowed them to meet almost all of the SMP’s quantitative conditionality as well as complete actions related to most of their structural reform program commitments in the areas of governance, financial sector development and structural fiscal policy. The authorities missed two structural benchmarks following their decision not to publish the asset declarations of public officials. The 12-month SMP extension will afford the authorities the opportunity to complete an alternative governance reform measure – the publication of an extractive industry transparency report in line with EITI standards – while continuing to implement their broader reform agenda.

Executive Board Assessment[3]

Executive Directors agreed with the thrust of the staff appraisal. Directors welcomed the authorities’ progress on their reform agenda under the Staff‑Monitored Program, noting its 12‑month extension. They stressed, however, that the macroeconomic environment remains challenging, particularly because of the continued decline in hydrocarbon production that is placing sustained pressure on fiscal and external balances. Directors urged steadfast reform implementation going forward, particularly to address long‑standing and serious governance challenges, which would help economic diversification and lay the foundation for private sector‑led, sustainable, and inclusive growth.

Directors welcomed the authorities’ decision to anchor public debt to preserve debt sustainability and restore external balance. They emphasized that this will require a gradual and sustained fiscal adjustment in the face of declining hydrocarbon revenues. Directors welcomed the commitment to achieving the 2025 budget and stressed the need for continued efforts to mobilize domestic non‑hydrocarbon revenues and strengthen fiscal institutions. Improving public financial management remains essential. Directors called for ambitious social spending reform to improve social outcomes and boost human capital development. They stressed the importance of approving the social protection law to enable the building of comprehensive social safety nets.

Directors commended the progress made toward restoring the health of the financial sector—including the completion of the audit of the systemic public bank and the creation of an arrears clearance strategy—but noted that vulnerabilities remain. Directors highlighted the importance of obtaining approval from the regional banking supervisor for the arrears clearance plan, further strengthening private banks’ balance sheets, and implementing the financial inclusion strategy.

Directors urged the authorities to redouble their efforts to substantially improve transparency and governance. They regretted the authorities’ decision to step back from the long‑standing commitment to publish asset declarations of public officials, and many Directors urged the authorities to reconsider this option. Directors considered that the publication of an annual report on financial flows in the extractive sector could help demonstrate the authorities’ commitment to address their governance deficit. They recommended further governance reforms to address issues highlighted in the 2019 governance diagnostic, including implementing the AML/CFT strategy. A predictable and transparent business environment with reliable and efficient application of laws is needed to create a level playing field that would attract domestic and foreign investment.

It is expected that the next Article IV consultation with Equatorial Guinea will be held on the standard 12‑month cycle.

Table 1. Equatorial Guinea: Selected Economic and Financial Indicators, 2024–26

	Estimates	Projections
	2024	2025	2026

	(Annual percentage change, unless otherwise specified)
Production, prices, and money
Real GDP	0.9	-1.6	0.5
Hydrocarbon GDP1	0.4	-6.4	-2.6
Non-hydrocarbon GDP	1.3	2.3	2.8
GDP deflator	2.5	3.0	1.0
Consumer prices (annual average)	3.4	2.9	2.9
Consumer prices (end of period)	3.4	2.9	3.5

Monetary and exchange rate
Broad money	2.6	2.7	2.9
Nominal effective exchange rate (- = depreciation)	…	…	…

External sector
Exports, f.o.b.	-7.1	1.6	-8.7
Hydrocarbon exports	-8.4	1.7	-10.2
Non-hydrocarbon exports	2.6	1.8	1.0
Imports, f.o.b.	-8.9	2.2	-1.9

Government finance
Revenue	-14.3	0.7	-5.0
Expenditure	-0.7	4.9	-1.3

	(Percent of GDP, unless otherwise specified)
Government finance
Revenue	17.9	17.8	16.7
Hydrocarbon revenue	14.5	14.3	13.0
Non-hydrocarbon revenue	3.4	3.5	3.7
Expenditure	18.5	19.1	18.6
Overall fiscal balance (Commitment basis)	-0.6	-1.3	-1.9
Overall fiscal balance (Cash basis)	-1.0	-2.0	-2.6
Non-hydrocarbon primary balance2	-11.7	-12.6	-12.3
Non-hydrocarbon primary balance (as percent of non-hydrocarbon GDP)	-17.0	-17.4	-16.4
Change in domestic arrears	-0.3	-0.7	-0.7

External sector
Current account balance (including official transfers; – = deficit)	-3.2	-3.3	-4.5
Imputed Foreign Reserves (net), US$billion	0.4	0.4	0.2

Debt
Total public debt	36.4	37.0	38.4
Domestic debt	28.7	28.0	27.9
External debt	7.8	9.0	10.5
External debt service-to-exports ratio (percent)	6.2	5.7	6.2
External debt service/government revenue (percent)	7.9	7.4	7.7

Memorandum items
Oil price (U.S. dollars a barrel)3	79.9	67.7	63.3
Nominal GDP (billions of CFA francs)	7,740	7,846	7,959
Nominal GDP (millions of US dollars)	12,769	12,881	13,138
Hydrocarbon GDP (billions of CFA francs)	2,401	2,193	1,971
Non-hydrocarbon GDP (billions of CFA francs)	5,340	5,653	5,987
Government deposits (in percent of GDP)	17.7	17.5	17.2
Oil volume (crude and condensado, millions of barrels)	29.1	26.8	25.1
Gas volume4 (millions of bbls oil equivalent)	51.8	49.2	49.5
Total Hydrocarbon Volume (in millions of barrels of oil equivalent)	81.0	76.0	74.7
Exchange rate (average; CFA francs/U.S. dollar)	606.2	…	…

Sources: Data provided by the Equatoguinean authorities; and staff estimates and projections.
1 Including oil, LNG, LPG, butane, propane, and methanol.
2 Excluding hydrocarbon revenues, hydrocarbon expenditures, and interest earned and paid.
3 The reference price for crude oil is the Brent.
4 Includes LNG, propane, butane and methanol.

[1] Under Article IV of the IMF’s Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country’s economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board.

[2] Under the IMF’s Articles of Agreement, publication of documents that pertain to member countries is voluntary and requires the member consent. The staff report will be shortly published on the www.imf.org/Countries/GNQ page.

[3] At the conclusion of the discussion, the Managing Director, as Chair of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summings up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.

Distributed by APO Group on behalf of International Monetary Fund (IMF).

MIL OSI Africa –

July 26, 2025

MIL-OSI USA: Congressman Ciscomani Backs Legislation Advancing Tax Relief, Border Security
Source: United States House of Representatives – Congressman Juan Ciscomani (Arizona)

WASHINGTON, D.C. – U.S. Congressman Juan Ciscomani issued the following statement today after the House of Representatives passed H.R. 1, otherwise known as the “One Big Beautiful Bill Act”:

“Today’s vote for H.R. 1, the ‘One Big Beautiful Bill Act,’ funds border security, strengthens our national defense, and stops the largest tax hike in U.S. history while instead delivering real tax relief for working families — including expanding the child tax credit, eliminating taxes on tips, overtime, and tax relief for seniors, and giving families more flexibility to save for college and healthcare. It cracks down on fraud and abuse in Medicaid through common-sense work requirements and better eligibility checks, with no cuts to FMAP which would have endangered the access to care for many in need. These steps help ensure that we protect Medicaid’s solvency so that it continues to serve our most vulnerable. And while there was a change regarding provider taxes, our rural and urban low-income serving hospitals will now have access to a new $50 billion hospital fund.

“I am grateful to the many stakeholders across our district who shared their expertise, personal stories, and insights over the last few months as we worked through the reconciliation process. H.R. 1 is not perfect – no bill ever is. But it includes many provisions that I know my constituents in southeastern Arizona support. There is more work to do, and I look forward to continuing to work together for our district and community.”

Background
The following are key provisions of the “One Big Beautiful Bill” Act:

TAX CUTS
- H.R. 1 delivers the largest middle- and working-class tax cut in U.S. history by extending the 2017 Tax Cuts and Jobs Act. If the 2017 Tax Cuts were left to expire:
  - The average taxpayer in AZ-06 would see a 24% tax hike
  - A family of 4 making $73,464, the median income in AZ-06, would see a $1,480 tax increase
  - 80,270 AZ-06 families would see their household’s child tax credits cut in half
  - 89% of AZ-06 taxpayers would see their Guaranteed Deduction slashed in half
  - 81,320 small businesses in AZ-06 would be hit with a 43.4% tax rate if the 199A Small Business Deduction expires
  - 8,216 AZ-06 taxpayers would be impacted by the return of the Alternative Minimum Tax
  - 1,545 family-owned farms in AZ-06 would have their Death Tax Exemption slashed in half next year
- The bill also provides additional tax relief to American families, seniors, small businesses, and workers through:
  - No tax on tips
  - No tax on overtime
  - No tax on car loan interests for American made cars
  - Ensuring 88% of all seniors who receive Social Security will pay NO TAX on their Social Security benefits
  - Repealing the unpopular 1099-K reporting requirement that all Venmo, PayPal, and gig transactions over $600 be reported to the IRS
  - Incentivizing businesses to produce their goods in the U.S.
BORDER SECURITY
- The bill makes historic investments in border security through the following provisions:
  Adds 3,000 new U.S. Border Patrol agents, 5,000 new Customs and Border Protection (CBP) Officers, and 200 new Air and Marine Operations (AMO) agents, and 290 support staff
- Allocates more than $46 billion to construct and complete the border barrier system by building 701 miles of primary wall, 900 miles of river barriers, 629 miles of secondary barriers, as well as replacing 141 miles of vehicle and pedestrian barriers
- Includes more than $6 billion to help CBP interdict more fentanyl, deploy more border-surveillance technology, enhance AMO’s surveillance capabilities, and increase CBP’s use of the biometric entry and exit system
NATIONAL SECURITY
- Additionally, the bill invests $150 billion into our national security by restoring American deterrence, revitalizing our defense industrial base, and modernizing our military through provisions like:
  Jump starting the Golden Dome initiative by investing $25 million in a layered missile defense shield.
- Provides critical resources to the Department of Defense to support securing the southern border, because border security is national security
- Investing $9 billion to improve the quality of life for our troops by increasing allowances and special pays, and to renovate aging, moldy barracks and dorms.
###

MIL OSI USA News –
July 26, 2025

MIL-OSI Security: Three Pennsylvania Residents Sentenced to Prison for Narcotics Trafficking

Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

One of the defendants also sentenced on unlawful possession of a firearm conviction

JOHNSTOWN, Pa. – Three residents of Pennsylvania have been sentenced in federal court on their convictions of conspiracy to distribute and possess with intent to distribute quantities of crack cocaine, cocaine, fentanyl, heroin, and/or methamphetamine, with one of the defendants also being sentenced for unlawful possession of a firearm by a convicted felon, Acting United States Attorney Troy Rivetti announced today.

The sentences imposed by United States District Judge Marilyn J. Horan were:

Defendant	Age	Residence	Sentence
Azheem Ellis	49	Philadelphia, Pa.	96 months in prison, to be followed by five years of supervised release
James Dotson	47	Johnstown, Pa.	180 months in prison, to be followed by 10 years of supervised release
Sandra Box	59	East Conemaugh, Pa.	33 months in prison, to be followed by three years of supervised release

According to information presented to the Court, from in and around April 2019 to in and around July 2021, in the Western District of Pennsylvania, Ellis conspired with others to distribute and possess with intent to distribute 40 grams or more of a mixture of fentanyl, 50 grams or more of a mixture of methamphetamine, and quantities of heroin, cocaine, and crack. During this same timeframe, Dotson conspired with others to distribute and possess with intent to distribute 50 grams or more of methamphetamine, 500 grams or more of a mixture of methamphetamine, 28 grams or more of a mixture of crack, 40 grams or more of a mixture of fentanyl, and quantities of heroin and cocaine. Additionally, in and around June 2021, Dotson—who had been previously convicted of a felony—unlawfully possessed a firearm. Federal law prohibits possession of a firearm or ammunition by a convicted felon. Further, from in and around February 2021 to in and around April 2021, Box conspired with others to distribute and possess with intent to distribute quantities of heroin and crack. The defendants were intercepted on a federal wiretap obtaining quantities of the drugs that they distributed to others, with Ellis and Dotson as two of the main targets of the wiretap investigation.

Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.

Acting United States Attorney Rivetti commended the Federal Bureau of Investigation’s Laurel Highlands Resident Agency and Homeland Security Investigations for the investigation that led to the successful prosecution of the defendants. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service–Criminal Investigation, United States Postal Inspection Service, Pennsylvania Office of Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department, and other local law enforcement agencies.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

MIL Security OSI –

July 26, 2025

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

Category: Taxation

Sharing myGov details

Online application process

Applying to repay borrowed amounts

Benefits of applying online

If you can’t apply online

How to withdraw your application

After you have received your amount

Request a review of our decision

What do I do if someone calls with an unexpected sales pitch?

I’m thinking of switching super funds. What should I ask first?

How can I compare my super fund?

How I can find out if a financial adviser’s been in trouble?

More action promised, but not yet delivered

The judgement

The scale of the problem

What is income apportionment?

Is this different to Robodebt?

Evidentiary burden

Expensive fix

Political choice

Congressman Valadao Joins Entire California GOP Delegation in Releasing a Statement on Governor Newsom’s Move to Overturn the Will of Voters