NewzIntel.com

Category: Trade

  • MIL-OSI USA: Rosen, Colleagues Push to Prevent Corporations From Using Trump’s Chaotic Tariffs as Cover to Price Gouge Americans

    US Senate News:

    Source: United States Senator Jacky Rosen (D-NV)

    WASHINGTON, DC – U.S. Senator Jacky Rosen (D-NV) joined Senate colleagues in a letter calling on the Federal Trade Commission (FTC) to investigate and stop corporations that may be using Donald Trump’s tariffs as a cover to raise prices on all goods, regardless of whether they are actually subject to new tariffs, and increase prices above and beyond what is necessary to cover any additional costs. In June 2025, the Federal Reserve Bank of New York released new survey results showing that “a significant share” of companies raised prices of goods and services that are not subject to tariffs.
    “This Administration’s reckless approach to trade is spiking costs for small businesses and creating opportunities for billion-dollar companies to grow their profits and take advantage of consumers,” wrote the lawmakers. “The FTC should be utilizing its full authority to prevent these unfair practices.”
    Senator Rosen has helped lead the fight opposing Trump’s reckless tariffs and defending consumers. She helped introduce the Tariff Transparency Act, which would require the U.S. International Trade Commission to study and publicly report on the economic effects of tariffs on Canada and Mexico– key trading partners for Nevada industries. She’s also repeatedly pushed back against price gouging, calling on the DOJ to curb price gouging at the gas pump and in the housing market.

    MIL OSI USA News –

  • MIL-OSI New Zealand: Trade – NZ-UAE trade deal a boost to export and investment – ExportNZ

    Source: BusinessNZ

    ExportNZ welcomes news of the United Arab Emirates Comprehensive Economic Partnership Agreement Legislation Amendment Bill passing into law last night, saying it marks the next step forward in seeing the Agreement between New Zealand and UAE provide a boost to exporters.
    Executive Director Joshua Tan says recent engagements with exporters nationwide proves there is plenty of interest from businesses to explore opportunities in the UAE.
    “The UAE is a fast-moving, high-value market with demand for exactly the kinds of quality, sustainable, and trusted products and services New Zealand is known for.
    “We not only see opportunities for exporting products and services to the UAE, but also fostering investment opportunities in New Zealand. We are excited about the potential for growth in the New Zealand-Emirati economic relationship.
    “ExportNZ acknowledges the hard work of our government officials and the Minister for Trade & Investment for moving quickly to conclude and pass this high-quality agreement. We look forward to notification of when the Comprehensive Economic Partnership Agreement will come into force for exporters to begin leveraging.”
    The BusinessNZ Network including BusinessNZ, EMA, Business Central, Business Canterbury and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.

    MIL OSI New Zealand News –

  • MIL-OSI USA: Klobuchar, Colleagues Press FTC to Implement “Click-to-Cancel”

    US Senate News:

    Source: United States Senator Amy Klobuchar (D-Minn)

    WASHINGTON — U.S. Senator Amy Klobuchar (D-MN) led her colleagues in a letter to Chair of the Federal Trade Commission (FTC), Andrew N. Ferguson, urging him to reissue and finalize its Negative Option Rule (known as “click-to-cancel”) that would make it easier for consumers to unsubscribe from subscriptions.

    “We write regarding the Federal Trade Commission’s (FTC) rulemaking to revise its Negative Option Rule to make it as easy for consumers to cancel a subscription as it was to sign up, frequently referred to as ‘click-to-cancel,’” wrote the Senators. “A review of more than 16,000 comments from the public made clear what should be obvious: Businesses should not be allowed to trap consumers in costly subscriptions by making it difficult to unsubscribe—costing consumers valuable time and money while stifling competition.” 

    “The FTC’s vital click-to-cancel rule was set to go into effect on July 14, 2025,” the Senators continued. “Yet, as you are aware, the Eighth Circuit Court of Appeals vacated the rule on procedural grounds. We urge the FTC to cure any perceived procedural defect and reissue the rule as quickly as possible to ensure consumers are protected from predatory subscription traps.”

    The letter was also signed by Senators Chris Van Hollen (D-MD), Ruben Gallego (D-AZ), Richard Blumenthal (D-CT), Cory Booker (D-NJ), , Kirsten Gillibrand (D-NY), and Jeff Merkey (D-OR).

    The full text of the letter is available here and below:

    Dear Chair Ferguson:

    We write regarding the Federal Trade Commission’s (FTC) rulemaking to revise its Negative Option Rule to make it as easy for consumers to cancel a subscription as it was to sign up, frequently referred to as “click-to-cancel.” A review of more than 16,000 comments from the public made clear what should be obvious: Businesses should not be allowed to trap consumers in costly subscriptions by making it difficult to unsubscribe—costing consumers valuable time and money while stifling competition. The FTC’s vital click-to-cancel rule was set to go into effect on July 14, 2025. Yet, as you are aware, the Eighth Circuit Court of Appeals vacated the rule on procedural grounds. We urge the FTC to cure any perceived procedural defect and reissue the rule as quickly as possible to ensure consumers are protected from predatory subscription traps.  

    Putting this commonsense consumer protection in place is vital to foster competition, innovation, and fairness. In today’s digital economy, more and more of what consumers purchase are offered as fee-for-service subscription programs, whether it be for video and music streaming services, ecommerce membership programs, gaming subscriptions, meal kit delivery services, cloud storage, home security monitoring, magazine or news subscriptions, fitness memberships, and many others. While these services are valued by many consumers, the costs for subscription services often add up to far more than consumers think, and it is often difficult for consumers to navigate the complicated process of cancelling those subscriptions. Other firms that allow consumers to subscribe to a service with the click of a button require consumers to talk to a customer service agent or jump through other hoops just to unsubscribe, even though many such businesses tell consumers they can cancel at any time. These practices have no countervailing benefit or redeeming justification. They just make life difficult and expensive. 

    These unfair practices also deter competition and stifle innovation. Subscription traps make it more difficult for consumers to switch providers, even if the alternative offers better, cheaper, or more innovative services. Allowing these practices incentivizes firms to spend time and resources locking consumers into their subscriptions rather than working to retain them with lower prices and better products. It also creates barriers to entry for innovative startups to break into markets because it is difficult for them to win consumers locked into competing subscriptions they cannot easily escape.   

    We urge the FTC to take all the steps necessary to reissue and finalize the Negative Option Rule so that consumers can cancel subscriptions quickly and easily. 

     

    MIL OSI USA News –

  • MIL-OSI Canada: Minister Sidhu discusses trade priorities and opportunities with counterparts and business leaders in British Columbia

    Source: Government of Canada News (2)

    July 22, 2025 – Vancouver, British Columbia – Global Affairs Canada

    The Honourable Maninder Sidhu, Minister of International Trade, was in British Columbia (B.C.) from July 17 to 21, to meet with provincial and industry leaders, as well as Trade Commissioner Service (TCS) clients in the defence, aerospace and agriculture sectors.

    During a keynote address at a Surrey Board of Trade event, Minister Sidhu outlined Canada’s economic priorities, including strengthening and diversifying trade relationships worldwide. He spoke about the significance of the Government of Canada’s Team Canada Trade Missions, a key initiative under the Indo-Pacific Strategy that helps Canadian businesses export to new international markets.

    The minister also met with his newly appointed B.C. counterpart, the Minister of Jobs and Economic Growth, Ravi Kahlon. They explored collaboration opportunities between the federal and provincial governments to create market connections for Canadian companies, including through Canada’s TCS. Following their meeting, Minister Kahlon joined Minister Sidhu at a round-table discussion with Business Council of British Columbia members, where they shared Canada’s and B.C.’s priorities for continued growth in the energy sector.

    While in the Vancouver area, Minister Sidhu toured the Port of Vancouver and saw first-hand how the harbour contributes to Canada’s international supply chain, facilitating the flow of exports to Asia and connections to essential goods from around the world. He also visited OSI Maritime Systems Ltd., a successful TCS partner, where he gained valuable insights into the unique export challenges faced by Canadian defence companies. The Minister then met with Tamara Vrooman, President and CEO of the Vancouver International Airport to discuss key priorities, including cargo capacity and enhancing international connectivity.

    In Kitimat, he visited LNG Canada, the country’s first export-oriented liquefied natural gas facility, where he learned about the company’s exports to Asia. As a world leader in the energy sector, Canada is a partner of choice for clean energy solutions and is ready to become a conventional and clean energy superpower.

    Minister Sidhu concluded his visit to B.C. in Kelowna. He participated in a discussion with business leaders at the Kelowna Chamber of Commerce, where he highlighted the role the TCS can play to help B.C. companies reach new export markets. While in Kelowna, the minister also visited Anodyne Electronics Manufacturing, Hillcrest Farms, and KF Aerospace, local businesses, to gain insights into their experiences, discuss challenges they face, and explore how the TCS can support them.

    MIL OSI Canada News –

  • MIL-OSI: iDox.ai Announces Launch of iDox.ai Privacy Scout: AI-Powered Solution That Goes Beyond DLP to Protect Sensitive Data in Real Time

    Source: GlobeNewswire (MIL-OSI)

    Fremont, California , July 22, 2025 (GLOBE NEWSWIRE) — iDox.ai, a U.S.-based provider of AI-powered document compliance tools, announces the launch of iDox.ai Privacy Scout, an advanced Data Loss Prevention (DLP) solution engineered to detect and protect sensitive information in real time, particularly in environments deploying Generative AI.

    iDox.ai

    As organizations adopt artificial intelligence across industries, new challenges emerge in safeguarding Personally Identifiable Information (PII), Protected Health Information (PHI), and other confidential data. Privacy Scout responds to these challenges by offering an automated solution that monitors and intercepts sensitive information before it can be exposed or misused.

    Importantly, iDox.ai Privacy Scout promotes the secure sharing of documents with AI tools while protecting the PII within them. Unlike traditional DLP tools, iDox.ai Privacy Scout doesn’t treat next-generation AI as a threat—it enables its safe use. This is a key differentiator that empowers organizations to embrace AI innovation without compromising on privacy.

    Key capabilities of iDox.ai Privacy Scout include:

    • Real-Time Detection and Redaction: The system applies intelligent AI models to scan documents and files for sensitive content. It instantly redacts or restricts access to flagged data, preventing unauthorized disclosure.
    • Industry-Wide Compatibility:  Built for seamless deployment across healthcare, finance, legal, corporate IT, and government sectors, iDox.ai Privacy Scout integrates effortlessly into existing workflows while strengthening your organization’s data protection framework. The application installs directly on employees’ devices, ensuring immediate protection at the endpoint. For enterprise environments, it includes a centralized management console for streamlined oversight, policy enforcement, and user activity monitoring.
    • Compliance Support: iDox.ai Privacy Scout helps organizations meet global data protection regulations such as HIPAA and GDPR, making it a strategic asset for businesses aiming to maintain data security and regulatory compliance.

    “With the rise of Generative AI, businesses face new risks related to data privacy and unintentional information leaks,” said Jeremy Wei, CEO of iDox.ai. “iDox.ai Privacy Scout offers a reliable DLP solution that allows organizations to stay compliant while leveraging the advantages of AI.”

    iDox.ai Privacy Scout joins iDox.ai’s suite of AI-driven compliance products, which includes tools for redaction, document comparison, and regulatory reporting. Together, these solutions help clients maintain secure information practices and implement effective Data Loss Prevention strategies.

    The launch of iDox.ai Privacy Scout reinforces iDox.ai’s mission to develop technology that addresses evolving compliance challenges and strengthens trust in digital operations.

    Organizations seeking early access or additional product details can visit: https://www.idox.ai/products/privacy-scout

    About iDox.ai

    Headquartered in Fremont, California, iDox.ai specializes in artificial intelligence tools for document management, redaction, and regulatory compliance. The company supports public and private sector organizations in securing data, reducing manual risk, and maintaining compliance in dynamic digital environments.

    The MIL Network –

  • MIL-OSI Canada: A new partnership for economic cooperation

    Source: Government of Canada regional news (2)

    MIL OSI Canada News –

  • MIL-OSI: Baker Hughes Company Announces Second-Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Second-quarter highlights

    • Orders of $7.0 billion, including $3.5 billion of IET orders.
    • RPO of $34.0 billion, including record IET RPO of $31.3 billion.
    • Revenue of $6.9 billion, down 3% year-over-year.
    • Attributable net income of $701 million.
    • GAAP diluted EPS of $0.71 and adjusted diluted EPS* of $0.63.
    • Adjusted EBITDA* of $1,212 million, up 7% year-over-year.
    • Cash flows from operating activities of $510 million and free cash flow* of $239 million.
    • Returns to shareholders of $423 million, including $196 million of share repurchases.

    HOUSTON and LONDON, July 22, 2025 (GLOBE NEWSWIRE) — Baker Hughes Company (Nasdaq: BKR) (“Baker Hughes” or the “Company”) announced results today for the second quarter of 2025.

    “We delivered strong second-quarter results, with total adjusted EBITDA margins increasing 170 basis points year-over-year to 17.5% despite a modest decline in revenue. This performance reflects the benefits of structural cost improvements and continued deployment of our business system, which is driving higher productivity, stronger operating leverage and more durable earnings across the company,” said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.

    “IET orders totaled $3.5 billion in the quarter, resulting in another record backlog for the segment. Importantly, order momentum remained strong, supported by more than $550 million of data center related orders, despite the absence of large LNG awards. Following a strong first half and a positive outlook for second half awards, we are confident of achieving the full-year order guidance range for IET.”

    “We remain confident in our ability to deliver solid performance in 2025, with continued growth in IET helping to offset softness in more market-sensitive areas of OFSE – underscoring the strength of our portfolio and the benefits of our strategic diversification. Accordingly, we are raising our full-year revenue and EBITDA guidance for IET and reestablishing full-year guidance for OFSE.”

    “During the quarter, we also announced three strategic transactions to advance our portfolio optimization strategy, reinforcing efforts to enhance the durability of earnings and cash flow while creating long-term value for shareholders. These actions are designed to unlock value from non-core businesses in our portfolio and redeploy that capital into higher-margin opportunities that fit our financial and strategic frameworks.”

    “We are progressing with our strategy of positioning the company for sustainable, differentiated growth and commend the focus and dedication of our people in executing this strategy,” concluded Simonelli.

    * Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

        Three Months Ended   Variance
    (in millions except per share amounts)   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Orders   $ 7,032   $ 6,459   $ 7,526     9 % (7 %)
    Revenue     6,910     6,427     7,139     8 % (3 %)
    Net income attributable to Baker Hughes     701     402     579     74 % 21 %
    Adjusted net income attributable to Baker Hughes*     623     509     568     22 % 10 %
    Adjusted EBITDA*     1,212     1,037     1,130     17 % 7 %
    Diluted earnings per share (EPS)     0.71     0.40     0.58     76 % 22 %
    Adjusted diluted EPS*     0.63     0.51     0.57     23 % 11 %
    Cash flow from operating activities     510     709     348     (28 %) 47 %
    Free cash flow*     239     454     106     (47 %) F


    * Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.

    “F” is used in most instances when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

    Quarter Highlights

    Executing our portfolio optimization strategy

    In the second quarter, Baker Hughes announced three strategic transactions, all of which reflect a disciplined capital allocation framework and a focus on core businesses with strong return potential.

    First, the Company signed an agreement to form a joint venture with a subsidiary of Cactus, Inc., contributing the Oilfield Services & Equipment’s (“OFSE“) Surface Pressure Control (“SPC“) product line in exchange for approximately $345 million while maintaining a minority ownership stake.

    Second, the Company announced an agreement to sell the Precision Sensors & Instrumentation (“PSI“) product line within Industrial & Energy Technology (“IET“) to Crane Company for approximately $1.15 billion. These proceeds will enhance the Company’s flexibility to reinvest in higher-growth, higher-return areas that support further margin expansion and improved returns.

    Finally, Baker Hughes agreed to acquire Continental Disc Corporation (“CDC“), a leading provider of pressure management solutions, for approximately $540 million. The CDC acquisition strengthens the IET Industrial Products portfolio with a highly complementary, margin-accretive business that expands the Company’s position in the flow and pressure control market and enhances recurring, lifecycle driven revenue.

    Key awards and technology achievements

    The Company continued to support the development of critical data center projects, with year-to-date data center awards of more than $650 million. IET received an award to supply 30 NovaLT™ turbines, representing our largest data center award to-date. The turbines, alongside other associated Baker Hughes equipment, will deliver up to 500 megawatts (MW) of reliable and efficient power for data center development across various U.S. locations.

    Frontier Infrastructure awarded a contract for NovaLT™ turbines, delivering up to 270 MW of power for its data center projects in Wyoming and Texas. This follows the March 2025 enterprise-wide agreement to accelerate large scale carbon capture and storage (“CCS“) and power solutions.

    Baker Hughes continues to grow the pipeline of future data center opportunities. At the Saudi-U.S. Investment Forum in May, the Company signed an MoU with DataVolt that plans to power data centers globally, including the NEOM project in the Kingdom that intends to utilize Baker Hughes’ multi-fuel NovaLT™ technology solution.

    In addition to growing demand from data center applications, IET experienced increased demand for NovaLT™ turbines in the gas infrastructure sector. During the second quarter, the segment secured an award for four gas turbines to support Aramco’s Master Gas System III pipeline project. Including this award, we have secured a total of $2.9 billion in gas infrastructure equipment orders over the past six quarters.

    Highlighting the durability of IET’s lifecycle model, the segment was awarded several aftermarket services contracts. In Gas Technology Services (“GTS“), the Company secured more than $350 million of Contractual Services Agreements (“CSA“) during the quarter. We signed a maintenance agreement with Belayim Petroleum Company (“Petrobel”) to improve uptime and reliability of critical turbomachinery equipment in Egypt. Also in GTS, we renewed a multi-year service agreement with Oman LNG, including resident engineering support along with digital remote monitoring and diagnostics services delivered through iCenter™.

    The Company gained further traction with New Energy globally, with year-to-date bookings now totaling $1.25 billion. In Climate Technology Solutions (“CTS“), we secured one of our largest CCS orders to-date, providing compression technology for a CCS hub in the Middle East. Also in CTS, we signed a framework agreement with Energinet in Denmark to supply 16 reciprocating compressor packages, supporting an increase in biogas production while driving methane and CO2 emissions reduction for gas infrastructure across the country.

    Industrial Technology continued to demonstrate strong momentum across multiple end markets. In Industrial Solutions, we secured a variety of awards for our Cordant™ suite of solutions. This includes an award from a large NOC to deploy Asset Performance Management across several compression stations in the Middle East, and an award from NOVA Chemicals to optimize maintenance spend and maximize production.

    OFSE maintained strong momentum in Mature Assets Solutions around the globe. In Angola, OFSE was awarded multi-year production solutions contracts for chemicals, artificial lift, and digital services to support a major operator’s offshore activities. In Kazakhstan, the TOPAN and Baker Hughes joint venture secured a critical production chemicals and services award. In Norway, Equinor awarded OFSE a contract to industrialize offshore plug and abandonment (“P&A“) operations in the Oseberg East field, which followed the announcement of a multi-year P&A framework agreement for integrated well services.

    OFSE saw continued adoption of Leucipa™ automated field production solution, securing an award from Repsol for next-generation AI capabilities following the MoU signed in October 2024. The Company also signed an agreement with ENI to deploy Leucipa for electric submersible pumps (“ESP“) optimization and AI-powered predictive failure analytics in the Middle East.

    Also in the Middle East, Baker Hughes signed a master services agreement with Aramco for installation and maintenance of ESPs across the Kingdom of Saudi Arabia.

    In North America, OFSE secured a multi-year contract to provide drag reducing chemicals to be deployed on Genesis Energy’s Cameron Highway Oil Pipeline and Poseidon systems, each of which is operated and 64% owned by Genesis Energy. To support this agreement, OFSE will expand its chemicals manufacturing footprint and deploy Leucipa. Additionally, bp awarded OFSE a multi-year chemicals management services contract to optimize throughput and asset reliability in the U.S. Gulf Coast.

    In Germany, OFSE successfully drilled Lower Saxony’s first productive deep geothermal exploration well, a project that leverages OFSE’s integrated well construction and production capabilities and the Company’s industry-leading subsurface-to-surface digital solutions to monitor and optimize operational performance.

    Consolidated Financial Results

    Revenue for the quarter was $6,910 million, an increase of 8% sequentially and down $229 million year-over-year. The decrease in revenue year-over-year was driven by a decrease in OFSE partially offset by an increase in IET.

    The Company’s total book-to-bill ratio in the second quarter of 2025 was 1.0; the IET book-to-bill ratio was 1.1.

    Net income as determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for the second quarter of 2025 was $701 million. Net income increased $299 million sequentially and increased $122 million year-over-year.

    Adjusted net income (a non-GAAP financial measure) for the second quarter of 2025 was $623 million, which excludes adjustments totaling $78 million. A list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1b in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted net income for the second quarter of 2025 was up 22% sequentially and up 10% year-over-year.

    Depreciation and amortization for the second quarter of 2025 was $293 million.

    Adjusted EBITDA (a non-GAAP financial measure) for the second quarter of 2025 was $1,212 million, which excludes adjustments totaling $102 million. See Table 1a in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted EBITDA for the second quarter was up 17% sequentially and up 7% year-over-year.

    The sequential increase in adjusted net income and adjusted EBITDA was primarily driven by an increase in volume, favorable FX, and overall productivity. The year-over-year increase in adjusted net income and adjusted EBITDA was driven by productivity and structural cost out initiatives, favorable FX, partially offset by lower volume in OFSE, and cost inflation in both segments.

    Other Financial Items

    Remaining Performance Obligations (“RPO”) in the second quarter of 2025 ended at $34 billion, an increase of $0.8 billion from the first quarter of 2025. OFSE RPO was $2.7 billion, down 3% sequentially, while IET RPO was $31.3 billion, up 3% sequentially. Within IET RPO, GTE RPO was $11.3 billion, and GTS RPO was $15.6 billion.

    Income tax expense in the second quarter of 2025 was $256 million.

    Other (income) expense, net in the second quarter of 2025 was $(134) million, primarily related to changes in fair value for equity securities of $(119) million.

    GAAP diluted earnings per share was $0.71. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.63. Excluded from adjusted diluted earnings per share were all items listed in Table 1b in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Cash flow from operating activities was $510 million for the second quarter of 2025. Free cash flow (a non-GAAP financial measure) for the quarter was $239 million. A reconciliation from GAAP has been provided in Table 1c in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Capital expenditures, net of proceeds from disposal of assets, were $271 million for the second quarter of 2025, of which $184 million was for OFSE and $68 million was for IET.

    Results by Reporting Segment

    The following segment discussions and variance explanations are intended to reflect management’s view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.

    Oilfield Services & Equipment

    (in millions)   Three Months Ended   Variance
    Segment results   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Orders   $ 3,503   $ 3,281   $ 4,068     7 % (14 %)
    Revenue   $ 3,617   $ 3,499   $ 4,011     3 % (10 %)
    EBITDA   $ 677   $ 623   $ 716     9 % (5 %)
    EBITDA margin     18.7 %   17.8 %   17.8 %   0.9pts 0.9pts
    (in millions)   Three Months Ended   Variance
    Revenue by Product Line   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Well Construction   $ 921   $ 892   $ 1,090     3 % (16 %)
    Completions, Intervention, and Measurements     935     925     1,118     1 % (16 %)
    Production Solutions     968     899     958     8 % 1 %
    Subsea & Surface Pressure Systems     793     782     845     1 % (6 %)
    Total Revenue   $ 3,617   $ 3,499   $ 4,011     3 % (10 %)
    (in millions)   Three Months Ended   Variance
    Revenue by Geographic Region   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    North America   $ 928   $ 922   $ 1,023     1 % (9 %)
    Latin America     639     568     663     12 % (4 %)
    Europe/CIS/Sub-Saharan Africa     653     580     827     13 % (21 %)
    Middle East/Asia     1,398     1,429     1,498     (2 %) (7 %)
    Total Revenue   $ 3,617   $ 3,499   $ 4,011     3 % (10 %)
                   
    North America   $ 928   $ 922   $ 1,023     1 % (9 %)
    International   $ 2,689   $ 2,577   $ 2,988     4 % (10 %)


    EBITDA excludes depreciation and amortization of     $233 million, $226 million, and $223 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.

    OFSE orders of $3,503 million for the second quarter of 2025 increased by 7% sequentially. Subsea and Surface Pressure Systems orders were $698 million, up 31% sequentially, and down 21% year-over-year.

    OFSE revenue of $3,617 million for the second quarter of 2025 was up 3% sequentially, and down 10% year-over-year.

    North America revenue was $928 million, up 1% sequentially. International revenue was $2,689 million, up 4% sequentially, with increase in all regions with the exception of Middle East and Asia.

    Segment EBITDA for the second quarter of 2025 was $677 million, an increase of $54 million, or 9% sequentially. The sequential increase in EBITDA was primarily driven by productivity, structural cost-out initiatives, volume increase, partially offset by inflation and revenue mix.

    Industrial & Energy Technology

    (in millions)   Three Months Ended   Variance
    Segment results   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Orders   $ 3,530   $ 3,178   $ 3,458     11 % 2 %
    Revenue   $ 3,293   $ 2,928   $ 3,128     12 % 5 %
    EBITDA   $ 585   $ 501   $ 497     17 % 18 %
    EBITDA margin     17.8 %   17.1 %   15.9 %   0.7pts 1.9pts
    (in millions)   Three Months Ended   Variance
    Orders by Product Line   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Gas Technology Equipment   $ 781   $ 1,335   $ 1,493     (42 %) (48 %)
    Gas Technology Services     986     913     769     8 % 28 %
    Total Gas Technology     1,767     2,248     2,261     (21 %) (22 %)
    Industrial Products     513     501     524     2 % (2 %)
    Industrial Solutions     327     281     281     16 % 16 %
    Total Industrial Technology     839     782     805     7 % 4 %
    Climate Technology Solutions     923     148     392     F F
    Total Orders   $ 3,530   $ 3,178   $ 3,458     11 % 2 %
    (in millions)   Three Months Ended   Variance
    Revenue by Product Line   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Gas Technology Equipment   $ 1,624   $ 1,456   $ 1,539     12 % 6 %
    Gas Technology Services     752     592     691     27 % 9 %
    Total Gas Technology     2,377     2,047     2,230     16 % 7 %
    Industrial Products     488     445     509     10 % (4 %)
    Industrial Solutions     273     258     262     6 % 4 %
    Total Industrial Technology     761     703     770     8 % (1 %)
    Climate Technology Solutions     156     178     128     (12 %) 22 %
    Total Revenue   $ 3,293   $ 2,928   $ 3,128     12 % 5 %


    EBITDA excludes depreciation and amortization of     $56 million, $53 million, and $55 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.

    “F” is used in most instances when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

    IET orders of $3,530 million for the second quarter of 2025 increased by $72 million, or 2% year-over-year. The increase was driven primarily by Climate Technology Solutions and partially offset by Gas Technology.

    IET revenue of $3,293 million for the second quarter of 2025 increased $165 million, or 5% year-over-year. The increase was driven by Gas Technology Equipment, up $85 million or 6% year-over-year, Gas Technology Services, up $61 million or 9% year-over-year, and Climate Technology Solutions, up $28 million or 22% year-over-year.

    Segment EBITDA for the quarter was $585 million, an increase of $88 million, or 18% year-over-year. The year-over-year increase in segment EBITDA was driven by positive pricing, favorable FX, and productivity, partially offset by cost inflation.

    Reconciliation of GAAP to non-GAAP Financial Measures

    Management provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance (including adjusted EBITDA; adjusted net income attributable to Baker Hughes; and adjusted diluted earnings per share) and liquidity (free cash flow) and that these measures may be used by investors to make informed investment decisions. Management believes that the exclusion of certain identified items from several key operating performance measures enables us to evaluate our operations more effectively, to identify underlying trends in the business, and to establish operational goals for certain management compensation purposes. Management also believes that free cash flow is an important supplemental measure of our cash performance but should not be considered as a measure of residual cash flow available for discretionary purposes, or as an alternative to cash flow from operating activities presented in accordance with GAAP.

    Table 1a. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted EBITDA and Segment EBITDA

        Three Months Ended
    (in millions)   June 30, 2025 March 31, 2025 June 30, 2024
    Net income attributable to Baker Hughes (GAAP)   $ 701   $ 402   $ 579  
    Net income attributable to noncontrolling interests     10     7     2  
    Provision for income taxes     256     152     243  
    Interest expense, net     54     51     47  
    Depreciation & amortization     293     285     283  
    Change in fair value of equity securities (1)     (119 )   140     (19 )
    Other charges and credits (1)     17     —     (6 )
    Adjusted EBITDA (non-GAAP)     1,212     1,037     1,130  
    Corporate costs     78     85     83  
    Other (income) / expense not allocated to segments     (28 )   1     —  
    Total Segment EBITDA (non-GAAP)   $ 1,262   $ 1,124   $ 1,213  
    OFSE     677     623     716  
    IET     585     501     497  


    (1)     Change in fair value of equity securities and other charges and credits are reported in “Other (income) expense, net” on the condensed consolidated statements of income (loss).

    Table 1a reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted EBITDA and Segment EBITDA. Adjusted EBITDA and Segment EBITDA exclude the impact of certain identified items.

    Table 1b. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted Net Income Attributable to Baker Hughes

        Three Months Ended
    (in millions, except per share amounts)   June 30, 2025 March 31, 2025 June 30, 2024
    Net income attributable to Baker Hughes (GAAP)   $ 701   $ 402   $ 579  
    Change in fair value of equity securities     (119 )   140     (19 )
    Other adjustments     17     —     14  
    Tax adjustments(1)     24     (32 )   (6 )
    Total adjustments, net of income tax     (78 )   108     (11 )
    Less: adjustments attributable to noncontrolling interests     —     —     —  
    Adjustments attributable to Baker Hughes     (78 )   108     (11 )
    Adjusted net income attributable to Baker Hughes (non-GAAP)   $ 623   $ 509   $ 568  
             
    Denominator:        
    Weighted-average shares of Class A common stock outstanding diluted     991     999     1,001  
    Adjusted earnings per share – diluted (non-GAAP)   $ 0.63   $ 0.51   $ 0.57  


    (1)     All periods reflect the tax associated with the other (income) loss adjustments.

    Table 1b reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted net income attributable to Baker Hughes. Adjusted net income attributable to Baker Hughes excludes the impact of certain identified items.

    Table 1c. Reconciliation of Net Cash Flows from Operating Activities to Free Cash Flow

        Three Months Ended
    (in millions)   June 30, 2025 March 31, 2025 June 30, 2024
    Net cash flows from operating activities (GAAP)   $ 510   $ 709   $ 348  
    Add: cash used for capital expenditures, net of proceeds from disposal of assets     (271 )   (255 )   (242 )
    Free cash flow (non-GAAP)   $ 239   $ 454   $ 106  

    Table 1c reconciles net cash flows from operating activities, which is the directly comparable financial result determined in accordance with GAAP, to free cash flow. Free cash flow is defined as net cash flows from operating activities less expenditures for capital assets plus proceeds from disposal of assets.


    Financial Tables (GAAP)

    Condensed Consolidated Statements of Income (Loss)
    (Unaudited)
     
        Three Months Ended June 30, Six Months Ended June 30,
    (In millions, except per share amounts)     2025     2024     2025     2024  
    Revenue   $ 6,910   $ 7,139   $ 13,337   $ 13,557  
    Costs and expenses:          
    Cost of revenue     5,295     5,493     10,247     10,469  
    Selling, general and administrative     567     643     1,144     1,261  
    Research and development costs     161     158     307     322  
    Other (income) expense, net     (134 )   (26 )   6     (48 )
    Interest expense, net     54     47     105     88  
    Income before income taxes     967     824     1,528     1,465  
    Provision for income taxes     (256 )   (243 )   (408 )   (421 )
    Net income     711     581     1,120     1,044  
    Less: Net income attributable to noncontrolling interests     10     2     17     10  
    Net income attributable to Baker Hughes Company   $ 701   $ 579   $ 1,103   $ 1,034  
               
    Per share amounts:      
    Basic income per Class A common stock   $ 0.71   $ 0.58   $ 1.11   $ 1.04  
    Diluted income per Class A common stock   $ 0.71   $ 0.58   $ 1.11   $ 1.03  
               
    Weighted average shares:          
    Class A basic     988     996     990     997  
    Class A diluted     991     1,001     995     1,002  
               
    Cash dividend per Class A common stock   $ 0.23   $ 0.21   $ 0.46   $ 0.42  
    Condensed Consolidated Statements of Financial Position
    (Unaudited)
     
    (In millions)   June 30, 2025 December 31, 2024
    ASSETS
    Current Assets:      
    Cash and cash equivalents   $ 3,087   $ 3,364  
    Current receivables, net     6,511     7,122  
    Inventories, net     5,105     4,954  
    All other current assets     2,915     1,771  
    Total current assets     17,618     17,211  
    Property, plant and equipment, less accumulated depreciation     5,176     5,127  
    Goodwill     5,801     6,078  
    Other intangible assets, net     3,919     3,951  
    Contract and other deferred assets     1,841     1,730  
    All other assets     4,385     4,266  
    Total assets   $ 38,740   $ 38,363  
    LIABILITIES AND EQUITY
    Current Liabilities:      
    Accounts payable   $ 4,340   $ 4,542  
    Short-term debt     66     53  
    Progress collections and deferred income     5,680     5,672  
    All other current liabilities     2,429     2,724  
    Total current liabilities     12,515     12,991  
    Long-term debt     5,968     5,970  
    Liabilities for pensions and other postretirement benefits     997     988  
    All other liabilities     1,392     1,359  
    Equity     17,868     17,055  
    Total liabilities and equity   $ 38,740   $ 38,363  
           
    Outstanding Baker Hughes Company shares:      
    Class A common stock     985     990  
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
     
        Three Months Ended June 30, Six Months Ended June 30,
    (In millions)     2025     2025     2024  
    Cash flows from operating activities:        
    Net income   $ 711   $ 1,120   $ 1,044  
    Adjustments to reconcile net income to net cash flows from operating activities:        
    Depreciation and amortization     293     579     566  
    Stock-based compensation cost     52     102     101  
    Change in fair value of equity securities     (119 )   21     (71 )
    (Benefit) provision for deferred income taxes     36     (17 )   33  
    Working capital     (120 )   98     (36 )
    Other operating items, net     (343 )   (684 )   (505 )
    Net cash flows provided by operating activities     510     1,219     1,132  
    Cash flows from investing activities:        
    Expenditures for capital assets     (301 )   (601 )   (625 )
    Proceeds from disposal of assets     30     74     101  
    Other investing items, net     (15 )   (69 )   (6 )
    Net cash flows used in investing activities     (286 )   (596 )   (530 )
    Cash flows from financing activities:        
    Repayment of long-term debt     —     —     (125 )
    Dividends paid     (227 )   (456 )   (419 )
    Repurchase of Class A common stock     (196 )   (384 )   (324 )
    Other financing items, net     (20 )   (105 )   (61 )
    Net cash flows used in financing activities     (443 )   (945 )   (929 )
    Effect of currency exchange rate changes on cash and cash equivalents     29     45     (35 )
    Decrease in cash and cash equivalents     (190 )   (277 )   (362 )
    Cash and cash equivalents, beginning of period     3,277     3,364     2,646  
    Cash and cash equivalents, end of period   $ 3,087   $ 3,087   $ 2,284  
    Supplemental cash flows disclosures:        
    Income taxes paid, net of refunds   $ 211   $ 418   $ 336  
    Interest paid   $ 98   $ 148   $ 150  


    Supplemental Financial Information

    Supplemental financial information can be found on the Company’s website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.

    Conference Call and Webcast

    The Company has scheduled an investor conference call to discuss management’s outlook and the results reported in today’s earnings announcement. The call will begin at 9:30 a.m. Eastern time, 8:30 a.m. Central time on Wednesday, July 23, 2025, the content of which is not part of this earnings release. 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. An archived version of the webcast will be available on the website for one month following the webcast.

    Forward-Looking Statements

    This news release (and oral statements made regarding the subjects of this release) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a “forward-looking statement”). 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. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company’s annual report on Form 10-K for the annual period ended December 31, 2024 and those set forth from time to time in other filings with the Securities and Exchange Commission (“SEC”). The documents are available through the Company’s website at: www.investors.bakerhughes.com or through the SEC’s Electronic Data Gathering and Analysis Retrieval system at: www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

    Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.

    These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:

    • Economic and political conditions – the impact of worldwide economic conditions and rising inflation; the impact of tariffs and the potential for significant increases thereto; the impact of global trade policy and the potential for significant changes thereto; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions.
    • Orders and RPO – our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.
    • Oil and gas market conditions – the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; liquefied natural gas supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries (“OPEC”) policy and the adherence by OPEC nations to their OPEC production quotas.
    • Terrorism and geopolitical risks – war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions, including Russia and Ukraine; and the recent conflict in the Middle East; labor disruptions, civil unrest or security conditions where we operate; potentially burdensome taxation, expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.

    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.

    For more information, please contact:

    Investor Relations

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

    Media Relations

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

    The MIL Network –

  • MIL-OSI: Baker Hughes Company Announces Second-Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Second-quarter highlights

    • Orders of $7.0 billion, including $3.5 billion of IET orders.
    • RPO of $34.0 billion, including record IET RPO of $31.3 billion.
    • Revenue of $6.9 billion, down 3% year-over-year.
    • Attributable net income of $701 million.
    • GAAP diluted EPS of $0.71 and adjusted diluted EPS* of $0.63.
    • Adjusted EBITDA* of $1,212 million, up 7% year-over-year.
    • Cash flows from operating activities of $510 million and free cash flow* of $239 million.
    • Returns to shareholders of $423 million, including $196 million of share repurchases.

    HOUSTON and LONDON, July 22, 2025 (GLOBE NEWSWIRE) — Baker Hughes Company (Nasdaq: BKR) (“Baker Hughes” or the “Company”) announced results today for the second quarter of 2025.

    “We delivered strong second-quarter results, with total adjusted EBITDA margins increasing 170 basis points year-over-year to 17.5% despite a modest decline in revenue. This performance reflects the benefits of structural cost improvements and continued deployment of our business system, which is driving higher productivity, stronger operating leverage and more durable earnings across the company,” said Lorenzo Simonelli, Baker Hughes Chairman and Chief Executive Officer.

    “IET orders totaled $3.5 billion in the quarter, resulting in another record backlog for the segment. Importantly, order momentum remained strong, supported by more than $550 million of data center related orders, despite the absence of large LNG awards. Following a strong first half and a positive outlook for second half awards, we are confident of achieving the full-year order guidance range for IET.”

    “We remain confident in our ability to deliver solid performance in 2025, with continued growth in IET helping to offset softness in more market-sensitive areas of OFSE – underscoring the strength of our portfolio and the benefits of our strategic diversification. Accordingly, we are raising our full-year revenue and EBITDA guidance for IET and reestablishing full-year guidance for OFSE.”

    “During the quarter, we also announced three strategic transactions to advance our portfolio optimization strategy, reinforcing efforts to enhance the durability of earnings and cash flow while creating long-term value for shareholders. These actions are designed to unlock value from non-core businesses in our portfolio and redeploy that capital into higher-margin opportunities that fit our financial and strategic frameworks.”

    “We are progressing with our strategy of positioning the company for sustainable, differentiated growth and commend the focus and dedication of our people in executing this strategy,” concluded Simonelli.

    * Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

        Three Months Ended   Variance
    (in millions except per share amounts)   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Orders   $ 7,032   $ 6,459   $ 7,526     9 % (7 %)
    Revenue     6,910     6,427     7,139     8 % (3 %)
    Net income attributable to Baker Hughes     701     402     579     74 % 21 %
    Adjusted net income attributable to Baker Hughes*     623     509     568     22 % 10 %
    Adjusted EBITDA*     1,212     1,037     1,130     17 % 7 %
    Diluted earnings per share (EPS)     0.71     0.40     0.58     76 % 22 %
    Adjusted diluted EPS*     0.63     0.51     0.57     23 % 11 %
    Cash flow from operating activities     510     709     348     (28 %) 47 %
    Free cash flow*     239     454     106     (47 %) F


    * Non-GAAP measure. See reconciliations in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Certain columns and rows in our tables and financial statements may not sum up due to the use of rounded numbers.

    “F” is used in most instances when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

    Quarter Highlights

    Executing our portfolio optimization strategy

    In the second quarter, Baker Hughes announced three strategic transactions, all of which reflect a disciplined capital allocation framework and a focus on core businesses with strong return potential.

    First, the Company signed an agreement to form a joint venture with a subsidiary of Cactus, Inc., contributing the Oilfield Services & Equipment’s (“OFSE“) Surface Pressure Control (“SPC“) product line in exchange for approximately $345 million while maintaining a minority ownership stake.

    Second, the Company announced an agreement to sell the Precision Sensors & Instrumentation (“PSI“) product line within Industrial & Energy Technology (“IET“) to Crane Company for approximately $1.15 billion. These proceeds will enhance the Company’s flexibility to reinvest in higher-growth, higher-return areas that support further margin expansion and improved returns.

    Finally, Baker Hughes agreed to acquire Continental Disc Corporation (“CDC“), a leading provider of pressure management solutions, for approximately $540 million. The CDC acquisition strengthens the IET Industrial Products portfolio with a highly complementary, margin-accretive business that expands the Company’s position in the flow and pressure control market and enhances recurring, lifecycle driven revenue.

    Key awards and technology achievements

    The Company continued to support the development of critical data center projects, with year-to-date data center awards of more than $650 million. IET received an award to supply 30 NovaLT™ turbines, representing our largest data center award to-date. The turbines, alongside other associated Baker Hughes equipment, will deliver up to 500 megawatts (MW) of reliable and efficient power for data center development across various U.S. locations.

    Frontier Infrastructure awarded a contract for NovaLT™ turbines, delivering up to 270 MW of power for its data center projects in Wyoming and Texas. This follows the March 2025 enterprise-wide agreement to accelerate large scale carbon capture and storage (“CCS“) and power solutions.

    Baker Hughes continues to grow the pipeline of future data center opportunities. At the Saudi-U.S. Investment Forum in May, the Company signed an MoU with DataVolt that plans to power data centers globally, including the NEOM project in the Kingdom that intends to utilize Baker Hughes’ multi-fuel NovaLT™ technology solution.

    In addition to growing demand from data center applications, IET experienced increased demand for NovaLT™ turbines in the gas infrastructure sector. During the second quarter, the segment secured an award for four gas turbines to support Aramco’s Master Gas System III pipeline project. Including this award, we have secured a total of $2.9 billion in gas infrastructure equipment orders over the past six quarters.

    Highlighting the durability of IET’s lifecycle model, the segment was awarded several aftermarket services contracts. In Gas Technology Services (“GTS“), the Company secured more than $350 million of Contractual Services Agreements (“CSA“) during the quarter. We signed a maintenance agreement with Belayim Petroleum Company (“Petrobel”) to improve uptime and reliability of critical turbomachinery equipment in Egypt. Also in GTS, we renewed a multi-year service agreement with Oman LNG, including resident engineering support along with digital remote monitoring and diagnostics services delivered through iCenter™.

    The Company gained further traction with New Energy globally, with year-to-date bookings now totaling $1.25 billion. In Climate Technology Solutions (“CTS“), we secured one of our largest CCS orders to-date, providing compression technology for a CCS hub in the Middle East. Also in CTS, we signed a framework agreement with Energinet in Denmark to supply 16 reciprocating compressor packages, supporting an increase in biogas production while driving methane and CO2 emissions reduction for gas infrastructure across the country.

    Industrial Technology continued to demonstrate strong momentum across multiple end markets. In Industrial Solutions, we secured a variety of awards for our Cordant™ suite of solutions. This includes an award from a large NOC to deploy Asset Performance Management across several compression stations in the Middle East, and an award from NOVA Chemicals to optimize maintenance spend and maximize production.

    OFSE maintained strong momentum in Mature Assets Solutions around the globe. In Angola, OFSE was awarded multi-year production solutions contracts for chemicals, artificial lift, and digital services to support a major operator’s offshore activities. In Kazakhstan, the TOPAN and Baker Hughes joint venture secured a critical production chemicals and services award. In Norway, Equinor awarded OFSE a contract to industrialize offshore plug and abandonment (“P&A“) operations in the Oseberg East field, which followed the announcement of a multi-year P&A framework agreement for integrated well services.

    OFSE saw continued adoption of Leucipa™ automated field production solution, securing an award from Repsol for next-generation AI capabilities following the MoU signed in October 2024. The Company also signed an agreement with ENI to deploy Leucipa for electric submersible pumps (“ESP“) optimization and AI-powered predictive failure analytics in the Middle East.

    Also in the Middle East, Baker Hughes signed a master services agreement with Aramco for installation and maintenance of ESPs across the Kingdom of Saudi Arabia.

    In North America, OFSE secured a multi-year contract to provide drag reducing chemicals to be deployed on Genesis Energy’s Cameron Highway Oil Pipeline and Poseidon systems, each of which is operated and 64% owned by Genesis Energy. To support this agreement, OFSE will expand its chemicals manufacturing footprint and deploy Leucipa. Additionally, bp awarded OFSE a multi-year chemicals management services contract to optimize throughput and asset reliability in the U.S. Gulf Coast.

    In Germany, OFSE successfully drilled Lower Saxony’s first productive deep geothermal exploration well, a project that leverages OFSE’s integrated well construction and production capabilities and the Company’s industry-leading subsurface-to-surface digital solutions to monitor and optimize operational performance.

    Consolidated Financial Results

    Revenue for the quarter was $6,910 million, an increase of 8% sequentially and down $229 million year-over-year. The decrease in revenue year-over-year was driven by a decrease in OFSE partially offset by an increase in IET.

    The Company’s total book-to-bill ratio in the second quarter of 2025 was 1.0; the IET book-to-bill ratio was 1.1.

    Net income as determined in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for the second quarter of 2025 was $701 million. Net income increased $299 million sequentially and increased $122 million year-over-year.

    Adjusted net income (a non-GAAP financial measure) for the second quarter of 2025 was $623 million, which excludes adjustments totaling $78 million. A list of the adjusting items and associated reconciliation from GAAP has been provided in Table 1b in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted net income for the second quarter of 2025 was up 22% sequentially and up 10% year-over-year.

    Depreciation and amortization for the second quarter of 2025 was $293 million.

    Adjusted EBITDA (a non-GAAP financial measure) for the second quarter of 2025 was $1,212 million, which excludes adjustments totaling $102 million. See Table 1a in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted EBITDA for the second quarter was up 17% sequentially and up 7% year-over-year.

    The sequential increase in adjusted net income and adjusted EBITDA was primarily driven by an increase in volume, favorable FX, and overall productivity. The year-over-year increase in adjusted net income and adjusted EBITDA was driven by productivity and structural cost out initiatives, favorable FX, partially offset by lower volume in OFSE, and cost inflation in both segments.

    Other Financial Items

    Remaining Performance Obligations (“RPO”) in the second quarter of 2025 ended at $34 billion, an increase of $0.8 billion from the first quarter of 2025. OFSE RPO was $2.7 billion, down 3% sequentially, while IET RPO was $31.3 billion, up 3% sequentially. Within IET RPO, GTE RPO was $11.3 billion, and GTS RPO was $15.6 billion.

    Income tax expense in the second quarter of 2025 was $256 million.

    Other (income) expense, net in the second quarter of 2025 was $(134) million, primarily related to changes in fair value for equity securities of $(119) million.

    GAAP diluted earnings per share was $0.71. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.63. Excluded from adjusted diluted earnings per share were all items listed in Table 1b in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Cash flow from operating activities was $510 million for the second quarter of 2025. Free cash flow (a non-GAAP financial measure) for the quarter was $239 million. A reconciliation from GAAP has been provided in Table 1c in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.”

    Capital expenditures, net of proceeds from disposal of assets, were $271 million for the second quarter of 2025, of which $184 million was for OFSE and $68 million was for IET.

    Results by Reporting Segment

    The following segment discussions and variance explanations are intended to reflect management’s view of the relevant comparisons of financial results on a sequential or year-over-year basis, depending on the business dynamics of the reporting segments.

    Oilfield Services & Equipment

    (in millions)   Three Months Ended   Variance
    Segment results   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Orders   $ 3,503   $ 3,281   $ 4,068     7 % (14 %)
    Revenue   $ 3,617   $ 3,499   $ 4,011     3 % (10 %)
    EBITDA   $ 677   $ 623   $ 716     9 % (5 %)
    EBITDA margin     18.7 %   17.8 %   17.8 %   0.9pts 0.9pts
    (in millions)   Three Months Ended   Variance
    Revenue by Product Line   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Well Construction   $ 921   $ 892   $ 1,090     3 % (16 %)
    Completions, Intervention, and Measurements     935     925     1,118     1 % (16 %)
    Production Solutions     968     899     958     8 % 1 %
    Subsea & Surface Pressure Systems     793     782     845     1 % (6 %)
    Total Revenue   $ 3,617   $ 3,499   $ 4,011     3 % (10 %)
    (in millions)   Three Months Ended   Variance
    Revenue by Geographic Region   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    North America   $ 928   $ 922   $ 1,023     1 % (9 %)
    Latin America     639     568     663     12 % (4 %)
    Europe/CIS/Sub-Saharan Africa     653     580     827     13 % (21 %)
    Middle East/Asia     1,398     1,429     1,498     (2 %) (7 %)
    Total Revenue   $ 3,617   $ 3,499   $ 4,011     3 % (10 %)
                   
    North America   $ 928   $ 922   $ 1,023     1 % (9 %)
    International   $ 2,689   $ 2,577   $ 2,988     4 % (10 %)


    EBITDA excludes depreciation and amortization of     $233 million, $226 million, and $223 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.

    OFSE orders of $3,503 million for the second quarter of 2025 increased by 7% sequentially. Subsea and Surface Pressure Systems orders were $698 million, up 31% sequentially, and down 21% year-over-year.

    OFSE revenue of $3,617 million for the second quarter of 2025 was up 3% sequentially, and down 10% year-over-year.

    North America revenue was $928 million, up 1% sequentially. International revenue was $2,689 million, up 4% sequentially, with increase in all regions with the exception of Middle East and Asia.

    Segment EBITDA for the second quarter of 2025 was $677 million, an increase of $54 million, or 9% sequentially. The sequential increase in EBITDA was primarily driven by productivity, structural cost-out initiatives, volume increase, partially offset by inflation and revenue mix.

    Industrial & Energy Technology

    (in millions)   Three Months Ended   Variance
    Segment results   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Orders   $ 3,530   $ 3,178   $ 3,458     11 % 2 %
    Revenue   $ 3,293   $ 2,928   $ 3,128     12 % 5 %
    EBITDA   $ 585   $ 501   $ 497     17 % 18 %
    EBITDA margin     17.8 %   17.1 %   15.9 %   0.7pts 1.9pts
    (in millions)   Three Months Ended   Variance
    Orders by Product Line   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Gas Technology Equipment   $ 781   $ 1,335   $ 1,493     (42 %) (48 %)
    Gas Technology Services     986     913     769     8 % 28 %
    Total Gas Technology     1,767     2,248     2,261     (21 %) (22 %)
    Industrial Products     513     501     524     2 % (2 %)
    Industrial Solutions     327     281     281     16 % 16 %
    Total Industrial Technology     839     782     805     7 % 4 %
    Climate Technology Solutions     923     148     392     F F
    Total Orders   $ 3,530   $ 3,178   $ 3,458     11 % 2 %
    (in millions)   Three Months Ended   Variance
    Revenue by Product Line   June 30, 2025 March 31, 2025 June 30, 2024   Sequential Year-over-year
    Gas Technology Equipment   $ 1,624   $ 1,456   $ 1,539     12 % 6 %
    Gas Technology Services     752     592     691     27 % 9 %
    Total Gas Technology     2,377     2,047     2,230     16 % 7 %
    Industrial Products     488     445     509     10 % (4 %)
    Industrial Solutions     273     258     262     6 % 4 %
    Total Industrial Technology     761     703     770     8 % (1 %)
    Climate Technology Solutions     156     178     128     (12 %) 22 %
    Total Revenue   $ 3,293   $ 2,928   $ 3,128     12 % 5 %


    EBITDA excludes depreciation and amortization of     $56 million, $53 million, and $55 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.

    “F” is used in most instances when variance is above 100%. Additionally, “U” is used when variance is below (100)%.

    IET orders of $3,530 million for the second quarter of 2025 increased by $72 million, or 2% year-over-year. The increase was driven primarily by Climate Technology Solutions and partially offset by Gas Technology.

    IET revenue of $3,293 million for the second quarter of 2025 increased $165 million, or 5% year-over-year. The increase was driven by Gas Technology Equipment, up $85 million or 6% year-over-year, Gas Technology Services, up $61 million or 9% year-over-year, and Climate Technology Solutions, up $28 million or 22% year-over-year.

    Segment EBITDA for the quarter was $585 million, an increase of $88 million, or 18% year-over-year. The year-over-year increase in segment EBITDA was driven by positive pricing, favorable FX, and productivity, partially offset by cost inflation.

    Reconciliation of GAAP to non-GAAP Financial Measures

    Management provides non-GAAP financial measures because it believes such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance (including adjusted EBITDA; adjusted net income attributable to Baker Hughes; and adjusted diluted earnings per share) and liquidity (free cash flow) and that these measures may be used by investors to make informed investment decisions. Management believes that the exclusion of certain identified items from several key operating performance measures enables us to evaluate our operations more effectively, to identify underlying trends in the business, and to establish operational goals for certain management compensation purposes. Management also believes that free cash flow is an important supplemental measure of our cash performance but should not be considered as a measure of residual cash flow available for discretionary purposes, or as an alternative to cash flow from operating activities presented in accordance with GAAP.

    Table 1a. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted EBITDA and Segment EBITDA

        Three Months Ended
    (in millions)   June 30, 2025 March 31, 2025 June 30, 2024
    Net income attributable to Baker Hughes (GAAP)   $ 701   $ 402   $ 579  
    Net income attributable to noncontrolling interests     10     7     2  
    Provision for income taxes     256     152     243  
    Interest expense, net     54     51     47  
    Depreciation & amortization     293     285     283  
    Change in fair value of equity securities (1)     (119 )   140     (19 )
    Other charges and credits (1)     17     —     (6 )
    Adjusted EBITDA (non-GAAP)     1,212     1,037     1,130  
    Corporate costs     78     85     83  
    Other (income) / expense not allocated to segments     (28 )   1     —  
    Total Segment EBITDA (non-GAAP)   $ 1,262   $ 1,124   $ 1,213  
    OFSE     677     623     716  
    IET     585     501     497  


    (1)     Change in fair value of equity securities and other charges and credits are reported in “Other (income) expense, net” on the condensed consolidated statements of income (loss).

    Table 1a reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted EBITDA and Segment EBITDA. Adjusted EBITDA and Segment EBITDA exclude the impact of certain identified items.

    Table 1b. Reconciliation of Net Income Attributable to Baker Hughes to Adjusted Net Income Attributable to Baker Hughes

        Three Months Ended
    (in millions, except per share amounts)   June 30, 2025 March 31, 2025 June 30, 2024
    Net income attributable to Baker Hughes (GAAP)   $ 701   $ 402   $ 579  
    Change in fair value of equity securities     (119 )   140     (19 )
    Other adjustments     17     —     14  
    Tax adjustments(1)     24     (32 )   (6 )
    Total adjustments, net of income tax     (78 )   108     (11 )
    Less: adjustments attributable to noncontrolling interests     —     —     —  
    Adjustments attributable to Baker Hughes     (78 )   108     (11 )
    Adjusted net income attributable to Baker Hughes (non-GAAP)   $ 623   $ 509   $ 568  
             
    Denominator:        
    Weighted-average shares of Class A common stock outstanding diluted     991     999     1,001  
    Adjusted earnings per share – diluted (non-GAAP)   $ 0.63   $ 0.51   $ 0.57  


    (1)     All periods reflect the tax associated with the other (income) loss adjustments.

    Table 1b reconciles net income attributable to Baker Hughes, which is the directly comparable financial result determined in accordance with GAAP, to adjusted net income attributable to Baker Hughes. Adjusted net income attributable to Baker Hughes excludes the impact of certain identified items.

    Table 1c. Reconciliation of Net Cash Flows from Operating Activities to Free Cash Flow

        Three Months Ended
    (in millions)   June 30, 2025 March 31, 2025 June 30, 2024
    Net cash flows from operating activities (GAAP)   $ 510   $ 709   $ 348  
    Add: cash used for capital expenditures, net of proceeds from disposal of assets     (271 )   (255 )   (242 )
    Free cash flow (non-GAAP)   $ 239   $ 454   $ 106  

    Table 1c reconciles net cash flows from operating activities, which is the directly comparable financial result determined in accordance with GAAP, to free cash flow. Free cash flow is defined as net cash flows from operating activities less expenditures for capital assets plus proceeds from disposal of assets.


    Financial Tables (GAAP)

    Condensed Consolidated Statements of Income (Loss)
    (Unaudited)
     
        Three Months Ended June 30, Six Months Ended June 30,
    (In millions, except per share amounts)     2025     2024     2025     2024  
    Revenue   $ 6,910   $ 7,139   $ 13,337   $ 13,557  
    Costs and expenses:          
    Cost of revenue     5,295     5,493     10,247     10,469  
    Selling, general and administrative     567     643     1,144     1,261  
    Research and development costs     161     158     307     322  
    Other (income) expense, net     (134 )   (26 )   6     (48 )
    Interest expense, net     54     47     105     88  
    Income before income taxes     967     824     1,528     1,465  
    Provision for income taxes     (256 )   (243 )   (408 )   (421 )
    Net income     711     581     1,120     1,044  
    Less: Net income attributable to noncontrolling interests     10     2     17     10  
    Net income attributable to Baker Hughes Company   $ 701   $ 579   $ 1,103   $ 1,034  
               
    Per share amounts:      
    Basic income per Class A common stock   $ 0.71   $ 0.58   $ 1.11   $ 1.04  
    Diluted income per Class A common stock   $ 0.71   $ 0.58   $ 1.11   $ 1.03  
               
    Weighted average shares:          
    Class A basic     988     996     990     997  
    Class A diluted     991     1,001     995     1,002  
               
    Cash dividend per Class A common stock   $ 0.23   $ 0.21   $ 0.46   $ 0.42  
    Condensed Consolidated Statements of Financial Position
    (Unaudited)
     
    (In millions)   June 30, 2025 December 31, 2024
    ASSETS
    Current Assets:      
    Cash and cash equivalents   $ 3,087   $ 3,364  
    Current receivables, net     6,511     7,122  
    Inventories, net     5,105     4,954  
    All other current assets     2,915     1,771  
    Total current assets     17,618     17,211  
    Property, plant and equipment, less accumulated depreciation     5,176     5,127  
    Goodwill     5,801     6,078  
    Other intangible assets, net     3,919     3,951  
    Contract and other deferred assets     1,841     1,730  
    All other assets     4,385     4,266  
    Total assets   $ 38,740   $ 38,363  
    LIABILITIES AND EQUITY
    Current Liabilities:      
    Accounts payable   $ 4,340   $ 4,542  
    Short-term debt     66     53  
    Progress collections and deferred income     5,680     5,672  
    All other current liabilities     2,429     2,724  
    Total current liabilities     12,515     12,991  
    Long-term debt     5,968     5,970  
    Liabilities for pensions and other postretirement benefits     997     988  
    All other liabilities     1,392     1,359  
    Equity     17,868     17,055  
    Total liabilities and equity   $ 38,740   $ 38,363  
           
    Outstanding Baker Hughes Company shares:      
    Class A common stock     985     990  
    Condensed Consolidated Statements of Cash Flows
    (Unaudited)
     
        Three Months Ended June 30, Six Months Ended June 30,
    (In millions)     2025     2025     2024  
    Cash flows from operating activities:        
    Net income   $ 711   $ 1,120   $ 1,044  
    Adjustments to reconcile net income to net cash flows from operating activities:        
    Depreciation and amortization     293     579     566  
    Stock-based compensation cost     52     102     101  
    Change in fair value of equity securities     (119 )   21     (71 )
    (Benefit) provision for deferred income taxes     36     (17 )   33  
    Working capital     (120 )   98     (36 )
    Other operating items, net     (343 )   (684 )   (505 )
    Net cash flows provided by operating activities     510     1,219     1,132  
    Cash flows from investing activities:        
    Expenditures for capital assets     (301 )   (601 )   (625 )
    Proceeds from disposal of assets     30     74     101  
    Other investing items, net     (15 )   (69 )   (6 )
    Net cash flows used in investing activities     (286 )   (596 )   (530 )
    Cash flows from financing activities:        
    Repayment of long-term debt     —     —     (125 )
    Dividends paid     (227 )   (456 )   (419 )
    Repurchase of Class A common stock     (196 )   (384 )   (324 )
    Other financing items, net     (20 )   (105 )   (61 )
    Net cash flows used in financing activities     (443 )   (945 )   (929 )
    Effect of currency exchange rate changes on cash and cash equivalents     29     45     (35 )
    Decrease in cash and cash equivalents     (190 )   (277 )   (362 )
    Cash and cash equivalents, beginning of period     3,277     3,364     2,646  
    Cash and cash equivalents, end of period   $ 3,087   $ 3,087   $ 2,284  
    Supplemental cash flows disclosures:        
    Income taxes paid, net of refunds   $ 211   $ 418   $ 336  
    Interest paid   $ 98   $ 148   $ 150  


    Supplemental Financial Information

    Supplemental financial information can be found on the Company’s website at: investors.bakerhughes.com in the Financial Information section under Quarterly Results.

    Conference Call and Webcast

    The Company has scheduled an investor conference call to discuss management’s outlook and the results reported in today’s earnings announcement. The call will begin at 9:30 a.m. Eastern time, 8:30 a.m. Central time on Wednesday, July 23, 2025, the content of which is not part of this earnings release. 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. An archived version of the webcast will be available on the website for one month following the webcast.

    Forward-Looking Statements

    This news release (and oral statements made regarding the subjects of this release) may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a “forward-looking statement”). 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. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company’s annual report on Form 10-K for the annual period ended December 31, 2024 and those set forth from time to time in other filings with the Securities and Exchange Commission (“SEC”). The documents are available through the Company’s website at: www.investors.bakerhughes.com or through the SEC’s Electronic Data Gathering and Analysis Retrieval system at: www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

    Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.

    These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:

    • Economic and political conditions – the impact of worldwide economic conditions and rising inflation; the impact of tariffs and the potential for significant increases thereto; the impact of global trade policy and the potential for significant changes thereto; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions.
    • Orders and RPO – our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.
    • Oil and gas market conditions – the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; liquefied natural gas supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries (“OPEC”) policy and the adherence by OPEC nations to their OPEC production quotas.
    • Terrorism and geopolitical risks – war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions, including Russia and Ukraine; and the recent conflict in the Middle East; labor disruptions, civil unrest or security conditions where we operate; potentially burdensome taxation, expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.

    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.

    For more information, please contact:

    Investor Relations

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

    Media Relations

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

    The MIL Network –

  • MIL-OSI: Renasant Corporation Announces Earnings for the Second Quarter of 2025

    Source: GlobeNewswire (MIL-OSI)

    TUPELO, Miss., July 22, 2025 (GLOBE NEWSWIRE) — Renasant Corporation (NYSE: RNST) (the “Company”) today announced earnings results for the second quarter of 2025.

    (Dollars in thousands, except earnings per share) Three Months Ended   Six Months Ended
      Jun 30,
    2025    		 Mar 31,
    2025    		 Jun 30,
    2024    		   Jun 30,
    2025    		 Jun 30,
    2024
    Net income and earnings per share:            
    Net income $ 1,018   $ 41,518   $ 38,846   $ 42,536   $ 78,255
    Merger and conversion related expenses (net of tax)   (15,935 )   (593 )   —     (16,527 )   —
    Day 1 acquisition provision (net of tax)   (50,026 )   —     —     (50,026 )   —
    Basic EPS   0.01     0.65     0.69     0.54     1.39
    Diluted EPS   0.01     0.65     0.69     0.53     1.38
    Adjusted diluted EPS (Non-GAAP)(1)   0.69     0.66     0.69     1.36     1.33
    Impact to diluted EPS from merger and conversion related expenses (net of tax)   (0.17 )   (0.01 )   —     (0.21 )   —
    Impact to diluted EPS from Day 1 acquisition provision (net of tax)   (0.53 )   —     —     (0.63 )   —
                                 

    “The results for the quarter reflect significant progress on the merger and integration of The First Bancshares, Inc.,” remarked Kevin D. Chapman, Chief Executive Officer of the Company. “Our employees continue to work diligently on bringing two strong companies together to better serve our customers.”

    Quarterly Highlights

    Merger with The First Bancshares, Inc.

    • On April 1, 2025, the Company completed its merger with The First Bancshares, Inc. (“The First”). As of the effective date of the merger, The First operated 116 locations throughout Louisiana, Mississippi, Alabama, Georgia and Florida and, net of purchase accounting adjustments, had $7.9 billion in assets, $5.2 billion in loans, and $6.4 billion in deposits

    Earnings

    • Net income for the second quarter of 2025 was $1.0 million, which includes merger and conversion expenses of $20.5 million and Day 1 acquisition provision for credit losses of $66.6 million; diluted EPS and adjusted diluted EPS (non-GAAP)(1) were $0.01 and $0.69, respectively
    • Net interest income (fully tax equivalent) for the second quarter of 2025 was $222.7 million, up $85.3 million linked quarter, primarily due to the merger with The First
    • For the second quarter of 2025, net interest margin was 3.85%, up 40 basis points linked quarter. Adjusted net interest margin (non-GAAP)(1) was 3.58%, up 16 basis points linked quarter
    • Cost of total deposits was 2.12% for the second quarter of 2025, down 10 basis points linked quarter
    • Noninterest income increased $11.9 million linked quarter, primarily due to the merger with The First
    • Mortgage banking income increased $3.1 million linked quarter. Gain on sale of mortgage servicing rights (“MSRs”) was $1.5 million. The mortgage division generated $679.6 million in interest rate lock volume in the second quarter of 2025, up $47.5 million linked quarter. Gain on sale margin was 1.87% for the second quarter of 2025, up 45 basis points linked quarter
    • Noninterest expense increased $69.3 million linked quarter, primarily due to the merger with The First. Merger and conversion expenses and core deposit intangible amortization increased $19.7 million and $7.8 million, respectively, linked quarter

    Balance Sheet

    • The combined company generated net organic loan growth of $311.6 million for the quarter, or 6.9% annualized
    • Securities increased $1.4 billion linked quarter, which includes $1.5 billion of securities acquired from The First. In the second quarter of 2025, the Company sold a portion of the acquired securities for proceeds of $686.5 million, which were reinvested in higher yielding assets
    • The combined company generated net organic deposit growth of $361.3 million for the quarter, or 6.8% annualized. Noninterest bearing deposits increased $1.8 billion linked quarter, primarily due to the merger with The First, and represented 24.8% of total deposits at June 30, 2025

    Capital and Stock Repurchase Program

    • Book value per share and tangible book value per share (non-GAAP)(1) decreased 7.1% and 14.7%, respectively, linked quarter, due to the merger with The First
    • The Company has a $100.0 million stock repurchase program in effect through October 2025 under which the Company is authorized to repurchase outstanding shares of its common stock either in open market purchases or privately-negotiated transactions. There was no buyback activity during the second quarter of 2025

    Credit Quality

    • The Company recorded a provision for credit losses of $81.3 million for the second quarter of 2025, which includes a $66.6 million Day 1 acquisition provision for credit losses and unfunded commitments
    • The ratio of the allowance for credit losses on loans to total loans was 1.57% at June 30, 2025, up one basis point linked quarter; net loan charge-offs for the second quarter of 2025 were $12.1 million
    • The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 204.97% at June 30, 2025, compared to 206.55% at March 31, 2025
    • Nonperforming loans to total loans remained at 0.76% at June 30, 2025, and criticized loans (which include classified and Special Mention loans) to total loans increased to 2.66% at June 30, 2025, compared to 2.45% at March 31, 2025, primarily due to the merger with The First

    (1) This is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.

    Income Statement

    (Dollars in thousands, except per share data) Three Months Ended   Six Months Ended
      Jun 30,
    2025    		 Mar 31,
    2025    		 Dec 31,
    2024    		 Sep 30,
    2024    		 Jun 30,
    2024    		   Jun 30,
    2025    		 Jun 30,
    2024
    Interest income                
    Loans held for investment $ 301,794 $ 196,566 $ 199,240   $ 202,655   $ 198,397     $ 498,360 $ 390,787  
    Loans held for sale   4,639   3,008   3,564     4,212     3,530       7,647   5,838  
    Securities   28,408   12,117   10,510     10,304     10,410       40,525   21,110  
    Other   9,057   8,639   12,030     11,872     7,874       17,696   15,655  
    Total interest income   343,898   220,330   225,344     229,043     220,211       564,228   433,390  
    Interest expense                
    Deposits   111,921   79,386   85,571     90,787     87,621       191,307   170,234  
    Borrowings   13,118   6,747   6,891     7,258     7,564       19,865   14,840  
    Total interest expense   125,039   86,133   92,462     98,045     95,185       211,172   185,074  
    Net interest income   218,859   134,197   132,882     130,998     125,026       353,056   248,316  
    Provision for credit losses                
    Provision for loan losses   75,400   2,050   3,100     1,210     4,300       77,450   6,938  
    Provision for (Recovery of) unfunded commitments   5,922   2,700   (500 )   (275 )   (1,000 )     8,622   (1,200 )
    Total provision for credit losses   81,322   4,750   2,600     935     3,300       86,072   5,738  
    Net interest income after provision for credit losses   137,537   129,447   130,282     130,063     121,726       266,984   242,578  
    Noninterest income   48,334   36,395   34,218     89,299     38,762       84,729   80,143  
    Noninterest expense   183,204   113,876   114,747     121,983     111,976       297,080   224,888  
    Income before income taxes   2,667   51,966   49,753     97,379     48,512       54,633   97,833  
    Income taxes   1,649   10,448   5,006     24,924     9,666       12,097   19,578  
    Net income $ 1,018 $ 41,518 $ 44,747   $ 72,455   $ 38,846     $ 42,536 $ 78,255  
                     
    Adjusted net income (non-GAAP)(1) $ 65,877 $ 42,111 $ 46,458   $ 42,960   $ 38,846     $ 107,987 $ 75,421  
    Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)(1) $ 103,001 $ 57,507 $ 54,177   $ 56,238   $ 51,812     $ 160,508 $ 100,043  
                     
    Basic earnings per share $ 0.01 $ 0.65 $ 0.70   $ 1.18   $ 0.69     $ 0.54 $ 1.39  
    Diluted earnings per share   0.01   0.65   0.70     1.18     0.69       0.53   1.38  
    Adjusted diluted earnings per share (non-GAAP)(1)   0.69   0.66   0.73     0.70     0.69       1.36   1.33  
    Average basic shares outstanding   94,580,927   63,666,419   63,565,437     61,217,094     56,342,909       79,209,073   56,275,628  
    Average diluted shares outstanding   95,136,160   64,028,025   64,056,303     61,632,448     56,684,626       79,671,775   56,607,947  
    Cash dividends per common share $ 0.22 $ 0.22 $ 0.22   $ 0.22   $ 0.22     $ 0.44 $ 0.44  

    (1) This is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.

    Performance Ratios

      Three Months Ended   Six Months Ended
      Jun 30,
    2025    		 Mar 31,
    2025    		 Dec 31,
    2024    		 Sep 30,
    2024    		 Jun 30,
    2024    		   Jun 30,
    2025    		 Jun 30,
    2024
    Return on average assets 0.02 % 0.94 % 0.99 % 1.63 % 0.90 %   0.39 % 0.91 %
    Adjusted return on average assets (non-GAAP)(1) 1.01   0.95   1.03   0.97   0.90     0.98   0.88  
    Return on average tangible assets (non-GAAP)(1) 0.13   1.01   1.07   1.75   0.98     0.48   0.99  
    Adjusted return on average tangible assets (non-GAAP)(1) 1.18   1.02   1.11   1.05   0.98     1.12   0.96  
    Return on average equity 0.11   6.25   6.70   11.29   6.68     2.66   6.77  
    Adjusted return on average equity (non-GAAP)(1) 7.06   6.34   6.96   6.69   6.68     6.76   6.52  
    Return on average tangible equity (non-GAAP)(1) 1.43   10.16   10.97   18.83   12.04     5.24   12.25  
    Adjusted return on average tangible equity (non-GAAP)(1) 13.50   10.30   11.38   11.26   12.04     12.10   11.81  
    Efficiency ratio (fully taxable equivalent) 67.59   65.51   67.61   54.73   67.31     66.78   67.41  
    Adjusted efficiency ratio (non-GAAP)(1) 57.07   64.43   65.82   64.62   66.60     59.95   67.41  
    Dividend payout ratio 2200.00   33.85   31.43   18.64   31.88     81.48   31.65  


    Capital and Balance Sheet Ratios

      As of
      Jun 30,
    2025    		 Mar 31,
    2025    		 Dec 31,
    2024    		 Sep 30,
    2024    		 Jun 30,
    2024
    Shares outstanding   95,019,311     63,739,467     63,565,690     63,564,028     56,367,924  
    Market value per share $ 35.93   $ 33.93   $ 35.75   $ 32.50   $ 30.54  
    Book value per share   39.77     42.79     42.13     41.82     41.77  
    Tangible book value per share (non-GAAP)(1)   23.10     27.07     26.36     26.02     23.89  
    Shareholders’ equity to assets   14.19 %   14.93 %   14.85 %   14.80 %   13.45 %
    Tangible common equity ratio (non-GAAP)(1)   8.77     9.99     9.84     9.76     8.16  
    Leverage ratio(2)   9.36     11.39     11.34     11.32     9.81  
    Common equity tier 1 capital ratio(2)   11.09     12.59     12.73     12.88     10.75  
    Tier 1 risk-based capital ratio(2)   11.09     13.35     13.50     13.67     11.53  
    Total risk-based capital ratio(2)   14.99     16.89     17.08     17.32     15.15  

    (1) This is a non-GAAP financial measure. A reconciliation of all non-GAAP financial measures disclosed in this release from GAAP to non-GAAP is included in the tables at the end of this release. The information below under the heading “Non-GAAP Financial Measures” explains why the Company believes the non-GAAP financial measures in this release provide useful information and describes the other purposes for which the Company uses non-GAAP financial measures.

    (2) Preliminary

    Noninterest Income and Noninterest Expense

    (Dollars in thousands) Three Months Ended   Six Months Ended
      Jun 30,
    2025    		 Mar 31,
    2025    		 Dec 31,
    2024    		 Sep 30,
    2024    		 Jun 30,
    2024    		   Jun 30,
    2025    		 Jun 30,
    2024
    Noninterest income                
    Service charges on deposit accounts $ 13,618 $ 10,364 $ 10,549 $ 10,438 $ 10,286   $ 23,982 $ 20,792
    Fees and commissions   6,650   3,787   4,181   4,116   3,944     10,437   7,893
    Insurance commissions   —   —   —   —   2,758     —   5,474
    Wealth management revenue   7,345   7,067   6,371   5,835   5,684     14,412   11,353
    Mortgage banking income   11,263   8,147   6,861   8,447   9,698     19,410   21,068
    Gain on sale of insurance agency   —   —   —   53,349   —     —   —
    Gain on extinguishment of debt   —   —   —   —   —     —   56
    BOLI income   3,383   2,929   3,317   2,858   2,701     6,312   5,392
    Other   6,075   4,101   2,939   4,256   3,691     10,176   8,115
    Total noninterest income $ 48,334 $ 36,395 $ 34,218 $ 89,299 $ 38,762   $ 84,729 $ 80,143
    Noninterest expense                
    Salaries and employee benefits $ 99,542 $ 71,957 $ 70,260 $ 71,307 $ 70,731   $ 171,499 $ 142,201
    Data processing   5,438   4,089   4,145   4,133   3,945     9,527   7,752
    Net occupancy and equipment   17,359   11,754   11,312   11,415   11,844     29,113   23,233
    Other real estate owned   157   685   590   56   105     842   212
    Professional fees   4,223   2,884   2,686   3,189   3,195     7,107   6,543
    Advertising and public relations   4,490   4,297   3,840   3,677   3,807     8,787   8,693
    Intangible amortization   8,884   1,080   1,133   1,160   1,186     9,964   2,398
    Communications   3,184   2,033   2,067   2,176   2,112     5,217   4,136
    Merger and conversion related expenses   20,479   791   2,076   11,273   —     21,270   —
    Other   19,448   14,306   16,638   13,597   15,051     33,754   29,720
    Total noninterest expense $ 183,204 $ 113,876 $ 114,747 $ 121,983 $ 111,976   $ 297,080 $ 224,888


    Mortgage Banking Income

    (Dollars in thousands) Three Months Ended   Six Months Ended
      Jun 30,
    2025    		 Mar 31,
    2025    		 Dec 31,
    2024    		 Sep 30,
    2024    		 Jun 30,
    2024    		   Jun 30,
    2025    		 Jun 30,
    2024
    Gain on sales of loans, net $ 5,316 $ 4,500 $ 2,379 $ 4,499 $ 5,199   $ 9,816 $ 9,734
    Fees, net   3,740   2,317   2,850   2,646   2,866     6,057   4,720
    Mortgage servicing income, net   2,207   1,330   1,632   1,302   1,633     3,537   6,614
    Total mortgage banking income $ 11,263 $ 8,147 $ 6,861 $ 8,447 $ 9,698   $ 19,410 $ 21,068


    Balance Sheet

    (Dollars in thousands) As of
      Jun 30,
    2025    		 Mar 31,
    2025    		 Dec 31,
    2024    		 Sep 30,
    2024    		 Jun 30,
    2024
    Assets          
    Cash and cash equivalents $ 1,378,612   $ 1,091,339   $ 1,092,032   $ 1,275,620   $ 851,906  
    Securities held to maturity, at amortized cost   1,076,817     1,101,901     1,126,112     1,150,531     1,174,663  
    Securities available for sale, at fair value   2,471,487     1,002,056     831,013     764,844     749,685  
    Loans held for sale, at fair value   356,791     226,003     246,171     291,735     266,406  
    Loans held for investment   18,563,447     13,055,593     12,885,020     12,627,648     12,604,755  
    Allowance for credit losses on loans   (290,770 )   (203,931 )   (201,756 )   (200,378 )   (199,871 )
    Loans, net   18,272,677     12,851,662     12,683,264     12,427,270     12,404,884  
    Premises and equipment, net   465,100     279,011     279,796     280,550     280,966  
    Other real estate owned   11,750     8,654     8,673     9,136     7,366  
    Goodwill   1,419,782     988,898     988,898     988,898     991,665  
    Other intangibles   163,751     13,025     14,105     15,238     16,397  
    Bank-owned life insurance   486,613     337,502     391,810     389,138     387,791  
    Mortgage servicing rights   64,539     72,902     72,991     71,990     72,092  
    Other assets   457,056     298,428     300,003     293,890     306,570  
    Total assets $ 26,624,975   $ 18,271,381   $ 18,034,868   $ 17,958,840   $ 17,510,391  
               
    Liabilities and Shareholders’ Equity          
    Liabilities          
    Deposits:          
    Noninterest-bearing $ 5,356,153   $ 3,541,375   $ 3,403,981   $ 3,529,801   $ 3,539,453  
    Interest-bearing   16,226,484     11,230,720     11,168,631     10,979,950     10,715,760  
    Total deposits   21,582,637     14,772,095     14,572,612     14,509,751     14,255,213  
    Short-term borrowings   405,349     108,015     108,018     108,732     232,741  
    Long-term debt   556,976     433,309     430,614     433,177     428,677  
    Other liabilities   301,159     230,857     245,306     249,102     239,059  
    Total liabilities   22,846,121     15,544,276     15,356,550     15,300,762     15,155,690  
               
    Shareholders’ equity:          
    Common stock   488,612     332,421     332,421     332,421     296,483  
    Treasury stock   (90,248 )   (91,646 )   (97,196 )   (97,251 )   (97,534 )
    Additional paid-in capital   2,393,566     1,486,849     1,491,847     1,488,678     1,304,782  
    Retained earnings   1,100,965     1,121,102     1,093,854     1,063,324     1,005,086  
    Accumulated other comprehensive loss   (114,041 )   (121,621 )   (142,608 )   (129,094 )   (154,116 )
    Total shareholders’ equity   3,778,854     2,727,105     2,678,318     2,658,078     2,354,701  
    Total liabilities and shareholders’ equity $ 26,624,975   $ 18,271,381   $ 18,034,868   $ 17,958,840   $ 17,510,391  


    Net Interest Income and Net Interest Margin

    (Dollars in thousands) Three Months Ended
      June 30, 2025 March 31, 2025 June 30, 2024
      Average
    Balance    		 Interest
    Income/
    Expense    		 Yield/
    Rate    		 Average
    Balance    		 Interest
    Income/
    Expense    		 Yield/
    Rate    		 Average
    Balance    		 Interest
    Income/
    Expense    		 Yield/
    Rate
    Interest-earning assets:                  
    Loans held for investment $ 18,448,000 $ 304,834 6.63 % $ 12,966,869 $ 199,504 6.24 % $ 12,575,651 $ 200,670 6.41 %
    Loans held for sale   287,855   4,639 6.45 %   200,917   3,008 5.99 %   219,826   3,530 6.42 %
    Taxable securities   3,106,565   24,917 3.21 %   1,883,535   10,971 2.33 %   1,832,002   9,258 2.02 %
    Tax-exempt securities   462,732   4,309 3.72 %   259,800   1,443 2.22 %   263,937   1,451 2.20 %
    Total securities   3,569,297   29,226 3.28 %   2,143,335   12,414 2.32 %   2,095,939   10,709 2.04 %
    Interest-bearing balances with banks   901,803   9,057 4.03 %   824,743   8,639 4.25 %   595,030   7,874 5.32 %
    Total interest-earning assets   23,206,955   347,756 6.01 %   16,135,864   223,565 5.61 %   15,486,446   222,783 5.77 %
    Cash and due from banks   357,338       181,869       187,519    
    Intangible assets   1,589,490       1,002,511       1,008,638    
    Other assets   1,029,082       669,392       688,766    
    Total assets $ 26,182,865     $ 17,989,636     $ 17,371,369    
    Interest-bearing liabilities:                  
    Interest-bearing demand(1) $ 11,191,443 $ 76,542 2.74 % $ 7,835,617 $ 54,710 2.83 % $ 7,094,411 $ 56,132 3.17 %
    Savings deposits   1,322,007   1,032 0.31 %   813,451   711 0.35 %   839,638   729 0.35 %
    Brokered deposits   —   — — %   —   — — %   294,650   3,944 5.37 %
    Time deposits   3,404,482   34,347 4.05 %   2,474,218   23,965 3.93 %   2,487,873   26,816 4.34 %
    Total interest-bearing deposits   15,917,932   111,921 2.82 %   11,123,286   79,386 2.89 %   10,716,572   87,621 3.28 %
    Borrowed funds   1,036,045   13,118 5.07 %   556,734   6,747 4.88 %   583,965   7,564 5.19 %
    Total interest-bearing liabilities   16,953,977   125,039 2.96 %   11,680,020   86,133 2.99 %   11,300,537   95,185 3.38 %
    Noninterest-bearing deposits   5,233,976       3,408,830       3,509,109    
    Other liabilities   249,861       208,105       223,992    
    Shareholders’ equity   3,745,051       2,692,681       2,337,731    
    Total liabilities and shareholders’ equity $ 26,182,865     $ 17,989,636     $ 17,371,369    
    Net interest income/ net interest margin   $ 222,717 3.85 %   $ 137,432 3.45 %   $ 127,598 3.31 %
    Cost of funding     2.26 %     2.31 %     2.58 %
    Cost of total deposits     2.12 %     2.22 %     2.47 %

    (1) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.

    Net Interest Income and Net Interest Margin, continued

    (Dollars in thousands) Six Months Ended
      June 30, 2025 June 30, 2024
      Average
    Balance    		 Interest
    Income/
    Expense    		 Yield/  
     Rate    		 Average
    Balance    		 Interest
    Income/
    Expense    		 Yield/  
     Rate
    Interest-earning assets:            
    Loans held for investment $ 15,722,576 $ 504,338 6.47 % $ 12,491,814 $ 395,310 6.35 %
    Loans held for sale   244,626   7,647 6.25 %   187,604   5,838 6.22 %
    Taxable securities   2,498,428   35,888 2.87 %   1,861,909   18,763 2.02 %
    Tax-exempt securities   361,827   5,752 3.18 %   267,108   2,956 2.21 %
    Total securities   2,860,255   41,640 2.91 %   2,129,017   21,719 2.04 %
    Interest-bearing balances with banks   863,486   17,696 4.13 %   582,683   15,655 5.40 %
    Total interest-earning assets   19,690,943   571,321 5.84 %   15,391,118   438,522 5.72 %
    Cash and due from banks   270,088       188,011    
    Intangible assets   1,297,622       1,009,232    
    Other assets   850,231       701,770    
    Total assets $ 22,108,884     $ 17,290,131    
    Interest-bearing liabilities:            
    Interest-bearing demand(1) $ 9,522,800 $ 131,252 2.78 % $ 7,025,200 $ 108,632 3.10 %
    Savings deposits   1,069,134   1,743 0.33 %   850,018   1,459 0.34 %
    Brokered deposits   —   — — %   370,129   9,931 5.38 %
    Time deposits   2,941,920   58,312 3.99 %   2,403,646   50,212 4.20 %
    Total interest-bearing deposits   13,533,854   191,307 2.85 %   10,648,993   170,234 3.21 %
    Borrowed funds   797,714   19,865 5.00 %   573,182   14,840 5.19 %
    Total interest-bearing liabilities   14,331,568   211,172 2.97 %   11,222,175   185,074 3.31 %
    Noninterest-bearing deposits   4,326,445       3,513,860    
    Other liabilities   229,098       228,090    
    Shareholders’ equity   3,221,773       2,326,006    
    Total liabilities and shareholders’ equity $ 22,108,884     $ 17,290,131    
    Net interest income/ net interest margin   $ 360,149 3.68 %   $ 253,448 3.30 %
    Cost of funding     2.28 %     2.52 %
    Cost of total deposits     2.16 %     2.41 %

    (1) Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.

    Loan Portfolio

    (Dollars in thousands) As of
      Jun 30,
    2025    		 Mar 31,
    2025    		 Dec 31,
    2024    		 Sep 30,
    2024    		 Jun 30,
    2024
    Loan Portfolio:          
    Commercial, financial, agricultural $ 2,666,923 $ 1,888,580 $ 1,885,817 $ 1,804,961 $ 1,847,762
    Lease financing   89,568   85,412   90,591   98,159   102,996
    Real estate – construction   1,339,967   1,090,862   1,093,653   1,198,838   1,355,425
    Real estate – 1-4 family mortgages   4,874,679   3,583,080   3,488,877   3,440,038   3,435,818
    Real estate – commercial mortgages   9,470,134   6,320,120   6,236,068   5,995,152   5,766,478
    Installment loans to individuals   122,176   87,539   90,014   90,500   96,276
    Total loans $ 18,563,447 $ 13,055,593 $ 12,885,020 $ 12,627,648 $ 12,604,755


    Credit Quality and Allowance for Credit Losses on Loans

    (Dollars in thousands) As of
      Jun 30,
    2025    		 Mar 31,
    2025    		 Dec 31,
    2024    		 Sep 30,
    2024    		 Jun 30,
    2024
    Nonperforming Assets:          
    Nonaccruing loans $ 137,999   $ 98,638   $ 110,811   $ 113,872   $ 97,795  
    Loans 90 days or more past due   3,860     95     2,464     5,351     240  
    Total nonperforming loans   141,859     98,733     113,275     119,223     98,035  
    Other real estate owned   11,750     8,654     8,673     9,136     7,366  
    Total nonperforming assets $ 153,609   $ 107,387   $ 121,948   $ 128,359   $ 105,401  
               
    Criticized Loans          
    Classified loans $ 333,626   $ 224,654   $ 241,708   $ 218,135   $ 191,595  
    Special Mention loans   159,931     95,778     130,882     163,804     138,343  
    Criticized loans(1) $ 493,557   $ 320,432   $ 372,590   $ 381,939   $ 329,938  
               
    Allowance for credit losses on loans $ 290,770   $ 203,931   $ 201,756   $ 200,378   $ 199,871  
    Net loan charge-offs (recoveries) $ 12,054   $ (125 ) $ 1,722   $ 703   $ 5,481  
    Annualized net loan charge-offs / average loans   0.26 %   — %   0.05 %   0.02 %   0.18 %
    Nonperforming loans / total loans   0.76     0.76     0.88     0.94     0.78  
    Nonperforming assets / total assets   0.58     0.59     0.68     0.71     0.60  
    Allowance for credit losses on loans / total loans   1.57     1.56     1.57     1.59     1.59  
    Allowance for credit losses on loans / nonperforming loans   204.97     206.55     178.11     168.07     203.88  
    Criticized loans / total loans   2.66     2.45     2.89     3.02     2.62  

    (1) Criticized loans include classified and Special Mention loans.

    CONFERENCE CALL INFORMATION:
    A live audio webcast of a conference call with analysts will be available beginning at 10:00 AM Eastern Time (9:00 AM Central Time) on Wednesday, July 23, 2025.

    The webcast is accessible through Renasant’s investor relations website at www.renasant.com or https://event.choruscall.com/mediaframe/webcast.html?webcastid=gtM01rRI. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2025 Second Quarter Earnings Webcast and Conference Call. International participants should dial 1-412-902-4145 to access the conference call.

    The webcast will be archived on www.renasant.com after the call and will remain accessible for one year. A replay can be accessed via telephone by dialing 1-877-344-7529 in the United States and entering conference number 6698526 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until August 6, 2025.

    ABOUT RENASANT CORPORATION:
    Renasant Corporation is the parent of Renasant Bank, a 121-year-old financial services institution. Renasant has assets of approximately $26.6 billion and operates 300 banking, lending, mortgage and wealth management offices throughout the Southeast and also offers factoring and asset-based lending on a nationwide basis.

    CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS:

    This press release may contain, or incorporate by reference, statements about Renasant Corporation that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “projects,” “anticipates,” “intends,” “estimates,” “plans,” “potential,” “focus,” “possible,” “may increase,” “may fluctuate,” “will likely result,” and similar expressions, or future or conditional verbs such as “will,” “should,” “would” and “could,” are generally forward-looking in nature and not historical facts. Forward-looking statements include information about the Company’s future financial performance, business strategy, projected plans and objectives and are based on the current beliefs and expectations of management. The Company’s management believes these forward-looking statements are reasonable, but they are all inherently subject to significant business, economic and competitive risks and uncertainties, many of which are beyond the Company’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ from those indicated or implied in the forward-looking statements, and such differences may be material. Prospective investors are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and, accordingly, investors should not place undue reliance on these forward-looking statements, which speak only as of the date they are made.

    Important factors currently known to management that could cause the Company’s actual results to differ materially from those in forward-looking statements include the following: (i) the Company’s ability to efficiently integrate acquisitions (including its recently-completed merger with The First into its operations, retain the customers of these businesses, grow the acquired operations and realize the cost savings expected from an acquisition to the extent and in the timeframe anticipated by management (including the possibility that such cost savings will not be realized when expected, or at all, as a result of the impact of, or challenges arising from, the integration of the acquired assets and assumed liabilities into the Company, potential adverse reactions or changes to business or employee relationships, or as a result of other unexpected factors or events); (ii) potential exposure to unknown or contingent risks and liabilities the Company has acquired, or may acquire, or target for acquisition, including in connection with its merger with The First; (iii) the effect of economic conditions and interest rates on a national, regional or international basis; (iv) timing and success of the implementation of changes in operations to achieve enhanced earnings or effect cost savings; (v) competitive pressures in the consumer finance, commercial finance, financial services, asset management, retail banking, factoring and mortgage lending and auto lending industries; (vi) the financial resources of, and products available from, competitors; (vii) changes in laws and regulations as well as changes in accounting standards; (viii) changes in governmental and regulatory policy, whether applicable specifically to financial institutions or impacting the United States generally (such as, for example, changes in trade policy); (ix) increased scrutiny by, and/or additional regulatory requirements of, regulatory agencies as a result of the Company’s merger with The First; (x) changes in the securities and foreign exchange markets; (xi) the Company’s potential growth, including its entrance or expansion into new markets, and the need for sufficient capital to support that growth; (xii) changes in the quality or composition of the Company’s loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers or issuers of investment securities, or the impact of interest rates on the value of the Company’s investment securities portfolio; (xiii) an insufficient allowance for credit losses as a result of inaccurate assumptions; (xiv) changes in the sources and costs of the capital the Company uses to make loans and otherwise fund the Company’s operations, due to deposit outflows, changes in the mix of deposits and the cost and availability of borrowings; (xv) general economic, market or business conditions, including the impact of inflation; (xvi) changes in demand for loan and deposit products and other financial services; (xvii) concentrations of credit or deposit exposure; (xviii) changes or the lack of changes in interest rates, yield curves and interest rate spread relationships; (xix) increased cybersecurity risk, including potential network breaches, business disruptions or financial losses; (xx) civil unrest, natural disasters, epidemics and other catastrophic events in the Company’s geographic area; (xxi) geopolitical conditions, including acts or threats of terrorism and actions taken by the United States or other governments in response to acts or threats of terrorism and/or military conflicts, which could impact business and economic conditions in the United States and abroad; (xxii) the impact, extent and timing of technological changes; and (xxiii) other circumstances, many of which are beyond management’s control.

    Management believes that the assumptions underlying the Company’s forward-looking statements are reasonable, but any of the assumptions could prove to be inaccurate. Investors are urged to carefully consider the risks described in the Company’s filings with the Securities and Exchange Commission (the “SEC”) from time to time, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.renasant.com and the SEC’s website at www.sec.gov.

    The Company undertakes no obligation, and specifically disclaims any obligation, to update or revise forward-looking statements, whether as a result of new information or to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, except as required by federal securities laws.

    NON-GAAP FINANCIAL MEASURES:

    In addition to results presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”), this press release and the presentation slides furnished to the SEC on the same Form 8-K as this release contain non-GAAP financial measures, namely, (i) adjusted loan yield, (ii) adjusted net interest income and margin, (iii) pre-provision net revenue (including on an as-adjusted basis), (iv) adjusted net income, (v) adjusted diluted earnings per share, (vi) tangible book value per share, (vii) the tangible common equity ratio, (viii) the adjusted return on average assets and on average equity and certain other performance ratios (namely, the ratio of pre-provision net revenue to average assets and the return on average tangible assets and on average tangible common equity (including each of the foregoing on an as-adjusted basis)), and (ix) the adjusted efficiency ratio.

    These non-GAAP financial measures adjust GAAP financial measures to exclude intangible assets, including related amortization, and/or certain gains or charges (such as, for the second quarter of 2025, merger and conversion expenses, the Day 1 acquisition provision for credit losses and unfunded commitments, and gain on sales of MSRs), with respect to which the Company is unable to accurately predict when these charges will be incurred or, when incurred, the amount thereof. Management uses these non-GAAP financial measures when evaluating capital utilization and adequacy. In addition, the Company believes that these non-GAAP financial measures facilitate the making of period-to-period comparisons and are meaningful indicators of its operating performance, particularly because these measures are widely used by industry analysts for companies with merger and acquisition activities. Also, because intangible assets such as goodwill and the core deposit intangible can vary extensively from company to company and, as to intangible assets, are excluded from the calculation of a financial institution’s regulatory capital, the Company believes that the presentation of this non-GAAP financial information allows readers to more easily compare the Company’s results to information provided in other regulatory reports and the results of other companies. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables below under the caption “Non-GAAP Reconciliations”.

    None of the non-GAAP financial information that the Company has included in this release or the accompanying presentation slides are intended to be considered in isolation or as a substitute for any measure prepared in accordance with GAAP. Investors should note that, because there are no standardized definitions for the calculations as well as the results, the Company’s calculations may not be comparable to similarly titled measures presented by other companies. Also, there may be limits in the usefulness of these measures to investors. As a result, the Company encourages readers to consider its consolidated financial statements in their entirety and not to rely on any single financial measure.

    Non-GAAP Reconciliations

    (Dollars in thousands, except per share data) Three Months Ended   Six Months Ended
      Jun 30,
    2025    		 Mar 31,
    2025    		 Dec 31,
    2024    		 Sep 30,
    2024    		 Jun 30,
    2024    		   Jun 30,
    2025    		 Jun 30,
    2024
    Adjusted Pre-Provision Net Revenue (“PPNR”)            
    Net income (GAAP) $ 1,018   $ 41,518   $ 44,747   $ 72,455   $ 38,846     $ 42,536   $ 78,255  
    Income taxes   1,649     10,448     5,006     24,924     9,666       12,097     19,578  
    Provision for credit losses (including unfunded commitments)   81,322     4,750     2,600     935     3,300       86,072     5,738  
    Pre-provision net revenue (non-GAAP) $ 83,989   $ 56,716   $ 52,353   $ 98,314   $ 51,812     $ 140,705   $ 103,571  
    Merger and conversion expense   20,479     791     2,076     11,273     —       21,270     —  
    Gain on extinguishment of debt   —     —     —     —     —       —     (56 )
    Gain on sales of MSR   (1,467 )   —     (252 )   —     —       (1,467 )   (3,472 )
    Gain on sale of insurance agency   —     —     —     (53,349 )   —       —     —  
    Adjusted pre-provision net revenue (non-GAAP) $ 103,001   $ 57,507   $ 54,177   $ 56,238   $ 51,812     $ 160,508   $ 100,043  
                     
    Adjusted Net Income and Adjusted Tangible Net Income            
    Net income (GAAP) $ 1,018   $ 41,518   $ 44,747   $ 72,455   $ 38,846     $ 42,536   $ 78,255  
    Amortization of intangibles   8,884     1,080     1,133     1,160     1,186       9,964     2,398  
    Tax effect of adjustments noted above(1)   (2,212 )   (270 )   (283 )   (296 )   (233 )     (2,481 )   (470 )
    Tangible net income (non-GAAP) $ 7,690   $ 42,328   $ 45,597   $ 73,319   $ 39,799     $ 50,019   $ 80,183  
                     
    Net income (GAAP) $ 1,018   $ 41,518   $ 44,747   $ 72,455   $ 38,846     $ 42,536   $ 78,255  
    Merger and conversion expense   20,479     791     2,076     11,273     —       21,270     —  
    Day 1 acquisition provision for loan losses   62,190     —     —     —     —       62,190     —  
    Day 1 acquisition provision for unfunded commitments   4,422     —     —     —     —       4,422     —  
    Gain on extinguishment of debt   —     —     —     —     —       —     (56 )
    Gain on sales of MSR   (1,467 )   —     (252 )   —     —       (1,467 )   (3,472 )
    Gain on sale of insurance agency   —     —     —     (53,349 )   —       —     —  
    Tax effect of adjustments noted above(1)   (20,765 )   (198 )   (113 )   12,581     —       (20,964 )   694  
    Adjusted net income (non-GAAP) $ 65,877   $ 42,111   $ 46,458   $ 42,960   $ 38,846     $ 107,987   $ 75,421  
    Amortization of intangibles   8,884     1,080     1,133     1,160     1,186       9,964     2,398  
    Tax effect of adjustments noted above(1)   (2,212 )   (270 )   (283 )   (296 )   (233 )     (2,481 )   (470 )
    Adjusted tangible net income (non-GAAP) $ 72,549   $ 42,921   $ 47,308   $ 43,824   $ 39,799     $ 115,470   $ 77,349  
    Tangible Assets and Tangible Shareholders’ Equity            
    Average shareholders’ equity (GAAP) $ 3,745,051   $ 2,692,681   $ 2,656,885   $ 2,553,586   $ 2,337,731     $ 3,221,773   $ 2,326,006  
    Average intangible assets   (1,589,490 )   (1,002,511 )   (1,003,551 )   (1,004,701 )   (1,008,638 )     (1,297,622 )   (1,009,232 )
    Average tangible shareholders’ equity (non-GAAP) $ 2,155,561   $ 1,690,170   $ 1,653,334   $ 1,548,885   $ 1,329,093     $ 1,924,151   $ 1,316,774  
                     
    Average assets (GAAP) $ 26,182,865   $ 17,989,636   $ 17,943,148   $ 17,681,664   $ 17,371,369     $ 22,108,884   $ 17,290,131  
    Average intangible assets   (1,589,490 )   (1,002,511 )   (1,003,551 )   (1,004,701 )   (1,008,638 )     (1,297,622 )   (1,009,232 )
    Average tangible assets (non-GAAP) $ 24,593,375   $ 16,987,125   $ 16,939,597   $ 16,676,963   $ 16,362,731     $ 20,811,262   $ 16,280,899  
                     
    Shareholders’ equity (GAAP) $ 3,778,854   $ 2,727,105   $ 2,678,318   $ 2,658,078   $ 2,354,701     $ 3,778,854   $ 2,354,701  
    Intangible assets   (1,583,533 )   (1,001,923 )   (1,003,003 )   (1,004,136 )   (1,008,062 )     (1,583,533 )   (1,008,062 )
    Tangible shareholders’ equity (non-GAAP) $ 2,195,321   $ 1,725,182   $ 1,675,315   $ 1,653,942   $ 1,346,639     $ 2,195,321   $ 1,346,639  
                     
    Total assets (GAAP) $ 26,624,975   $ 18,271,381   $ 18,034,868   $ 17,958,840   $ 17,510,391     $ 26,624,975   $ 17,510,391  
    Intangible assets   (1,583,533 )   (1,001,923 )   (1,003,003 )   (1,004,136 )   (1,008,062 )     (1,583,533 )   (1,008,062 )
    Total tangible assets (non-GAAP) $ 25,041,442   $ 17,269,458   $ 17,031,865   $ 16,954,704   $ 16,502,329     $ 25,041,442   $ 16,502,329  
                     
    Adjusted Performance Ratios                
    Return on average assets (GAAP)   0.02 %   0.94 %   0.99 %   1.63 %   0.90 %     0.39 %   0.91 %
    Adjusted return on average assets (non-GAAP)   1.01     0.95     1.03     0.97     0.90       0.98     0.88  
    Return on average tangible assets (non-GAAP)   0.13     1.01     1.07     1.75     0.98       0.48     0.99  
    Pre-provision net revenue to average assets (non-GAAP)   1.29     1.28     1.16     2.21     1.20       1.28     1.20  
    Adjusted pre-provision net revenue to average assets (non-GAAP)   1.58     1.30     1.20     1.27     1.20       1.46     1.16  
    Adjusted return on average tangible assets (non-GAAP)   1.18     1.02     1.11     1.05     0.98       1.12     0.96  
    Return on average equity (GAAP)   0.11     6.25     6.70     11.29     6.68       2.66     6.77  
    Adjusted return on average equity (non-GAAP)   7.06     6.34     6.96     6.69     6.68       6.76     6.52  
    Return on average tangible equity (non-GAAP)   1.43     10.16     10.97     18.83     12.04       5.24     12.25  
    Adjusted return on average tangible equity (non-GAAP)   13.50     10.30     11.38     11.26     12.04       12.10     11.81  
                     
    Adjusted Diluted Earnings Per Share            
    Average diluted shares outstanding   95,136,160     64,028,025     64,056,303     61,632,448     56,684,626       79,671,775     56,607,947  
                     
    Diluted earnings per share (GAAP) $ 0.01   $ 0.65   $ 0.70   $ 1.18   $ 0.69     $ 0.53   $ 1.38  
    Adjusted diluted earnings per share (non-GAAP) $ 0.69   $ 0.66   $ 0.73   $ 0.70   $ 0.69     $ 1.36   $ 1.33  
                     
    Tangible Book Value Per Share                
    Shares outstanding   95,019,311     63,739,467     63,565,690     63,564,028     56,367,924       95,019,311     56,367,924  
                     
    Book value per share (GAAP) $ 39.77   $ 42.79   $ 42.13   $ 41.82   $ 41.77     $ 39.77   $ 41.77  
    Tangible book value per share (non-GAAP) $ 23.10   $ 27.07   $ 26.36   $ 26.02   $ 23.89     $ 23.10   $ 23.89  
                     
    Tangible Common Equity Ratio                
    Shareholders’ equity to assets (GAAP)   14.19 %   14.93 %   14.85 %   14.80 %   13.45 %     14.19 %   13.45 %
    Tangible common equity ratio (non-GAAP)   8.77 %   9.99 %   9.84 %   9.76 %   8.16 %     8.77 %   8.16 %
    Adjusted Efficiency Ratio                
    Net interest income (FTE) (GAAP) $ 222,717   $ 137,432   $ 135,502   $ 133,576   $ 127,598     $ 360,149   $ 253,448  
                     
    Total noninterest income (GAAP) $ 48,334   $ 36,395   $ 34,218   $ 89,299   $ 38,762     $ 84,729   $ 80,143  
    Gain on sales of MSR   (1,467 )   —     (252 )   —     —       (1,467 )   (3,472 )
    Gain on extinguishment of debt   —     —     —     —     —       —     (56 )
    Gain on sale of insurance agency   —     —     —     (53,349 )   —       —     —  
    Total adjusted noninterest income (non-GAAP) $ 46,867   $ 36,395   $ 33,966   $ 35,950   $ 38,762     $ 83,262   $ 76,615  
                     
    Noninterest expense (GAAP) $ 183,204   $ 113,876   $ 114,747   $ 121,983   $ 111,976     $ 297,080   $ 224,888  
    Amortization of intangibles   (8,884 )   (1,080 )   (1,133 )   (1,160 )   (1,186 )     (9,964 )   (2,398 )
    Merger and conversion expense   (20,479 )   (791 )   (2,076 )   (11,273 )   —       (21,270 )   —  
    Total adjusted noninterest expense (non-GAAP) $ 153,841   $ 112,005   $ 111,538   $ 109,550   $ 110,790     $ 265,846   $ 222,490  
                     
    Efficiency ratio (GAAP)   67.59 %   65.51 %   67.61 %   54.73 %   67.31 %     66.78 %   67.41 %
    Adjusted efficiency ratio (non-GAAP)   57.07 %   64.43 %   65.82 %   64.62 %   66.60 %     59.95 %   67.41 %
                     
    Adjusted Net Interest Income and Adjusted Net Interest Margin            
    Net interest income (FTE) (GAAP) $ 222,717   $ 137,432   $ 135,502   $ 133,576   $ 127,598     $ 360,149   $ 253,448  
    Net interest income collected on problem loans   (2,779 )   (1,026 )   (151 )   (642 )   146       (3,805 )   23  
    Accretion recognized on purchased loans   (17,834 )   (558 )   (616 )   (1,089 )   (897 )     (18,392 )   (1,697 )
    Amortization recognized on purchased time deposits   4,396     —     —     —     —       4,396     —  
    Amortization recognized on purchased long term borrowings   1,072     —     —     —     —       1,072     —  
    Adjustments to net interest income $ (15,145 ) $ (1,584 ) $ (767 ) $ (1,731 ) $ (751 )   $ (16,729 ) $ (1,674 )
    Adjusted net interest income (FTE) (non-GAAP) $ 207,572   $ 135,848   $ 134,735   $ 131,845   $ 126,847     $ 343,420   $ 251,774  
                     
    Net interest margin (GAAP)   3.85 %   3.45 %   3.36 %   3.36 %   3.31 %     3.68 %   3.30 %
    Adjusted net interest margin (non-GAAP)   3.58 %   3.42 %   3.34 %   3.32 %   3.29 %     3.51 %   3.28 %
                     
    Adjusted Loan Yield                
    Loan interest income (FTE) (GAAP) $ 304,834   $ 199,504   $ 201,562   $ 204,935   $ 200,670     $ 504,338   $ 395,310  
    Net interest income collected on problem loans   (2,779 )   (1,026 )   (151 )   (642 )   146       (3,805 )   23  
    Accretion recognized on purchased loans   (17,834 )   (558 )   (616 )   (1,089 )   (897 )     (18,392 )   (1,697 )
    Adjusted loan interest income (FTE) (non-GAAP) $ 284,221   $ 197,920   $ 200,795   $ 203,204   $ 199,919     $ 482,141   $ 393,636  
                     
    Loan yield (GAAP)   6.63 %   6.24 %   6.29 %   6.47 %   6.41 %     6.47 %   6.35 %
    Adjusted loan yield (non-GAAP)   6.18 %   6.19 %   6.27 %   6.41 %   6.38 %     6.18 %   6.32 %

    (1) Tax effect is calculated based on the respective legal entity’s appropriate federal and state tax rates (as applicable) for the period, and includes the estimated impact of both current and deferred tax expense.

           
    Contacts: For Media:   For Financials:
      John S. Oxford   James C. Mabry IV
      Senior Vice President   Executive Vice President
      Chief Marketing Officer   Chief Financial Officer
      (662) 680-1219   (662) 680-1281

    The MIL Network –

  • MIL-OSI: Range Announces Second Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    FORT WORTH, Texas, July 22, 2025 (GLOBE NEWSWIRE) — RANGE RESOURCES CORPORATION (NYSE: RRC) today announced its second quarter 2025 financial results.

    Second Quarter 2025 Highlights –

    • Cash flow from operating activities of $336 million
    • Cash flow from operations, before working capital changes, of $301 million
    • Repurchased $53 million of shares, paid $21 million in dividends, and reduced net debt to $1.2 billion
    • Capital spending was $154 million, approximately 23% of the annual 2025 budget
    • Realized price, including hedges, was $3.49 per mcfe
    • Natural gas differential, including basis hedging, of ($0.50) per mcf to NYMEX
    • Pre-hedge NGL realizations of $23.73 per barrel – a premium of $0.61 over Mont Belvieu equivalent
    • Production averaged 2.20 Bcfe per day, approximately 68% natural gas
    • Improved 2025 production guidance and increased expected lateral footage in year-end inventory, while lowering 2025 capital due to operational efficiencies.

    Commenting on the results, Dennis Degner, the Company’s CEO said, “This year is off to a great start with another quarter of efficiency gains and consistent well performance driving strong free cash flow and building operational momentum. Our strong financial results supported $74 million in share repurchases and dividends, while lowering net debt to $1.2 billion. We believe Range is well positioned to benefit as in-basin demand opportunities materialize alongside a global call on natural gas. Range is one of the few producers in Appalachia with sufficient high-quality inventory to support the required growth in baseload supply. Further, Range’s continued efficiencies are supported by our countercyclical investments in drilled inventory over the last 18 months and consistent well results. Importantly, we intend to help meet future demand increases while also returning significant capital to shareholders.”

    Financial Discussion

    Except for generally accepted accounting principles (“GAAP”) reported amounts, specific expense categories exclude non-cash impairments, unrealized mark-to-market adjustment on derivatives, non-cash stock compensation and other items shown separately on the attached tables. “Unit costs” as used in this release are composed of direct operating, transportation, gathering, processing and compression, taxes other than income, general and administrative, interest and depletion, depreciation and amortization costs divided by production. See “Non-GAAP Financial Measures” for a definition of non-GAAP financial measures and the accompanying tables that reconcile each non-GAAP measure to its most directly comparable GAAP financial measure.

    Second Quarter 2025 Results

    GAAP revenues and other income for second quarter 2025 totaled $856 million, GAAP net cash provided from operating activities (including changes in working capital) was $336 million, and GAAP net income was $238 million ($0.99 per diluted share).  Second quarter earnings results include a $155 million mark-to-market derivative gain due to decreases in commodity prices.

    Cash flow from operations before changes in working capital, a non-GAAP measure, was $301 million.  Adjusted net income comparable to analysts’ estimates, a non-GAAP measure, was $158 million ($0.66 per diluted share) in second quarter 2025.

    The following table details Range’s second quarter 2025 unit costs per mcfe(a):

    Expenses   2Q 2025
    (per mcfe)    		   2Q 2024
    (per mcfe)    		   Increase (Decrease)
                 
    Direct operating(a)   $ 0.11   $ 0.11   0 %
    Transportation, gathering, processing and compression(a)     1.52     1.44   6 %
    Taxes other than income     0.04     0.03   33 %
    General and administrative(a)     0.16     0.16   0 %
    Interest expense(a)     0.13     0.14   (7 %)
    Total cash unit costs(b)          1.97     1.88   5 %
    Depletion, depreciation and amortization (DD&A)     0.46     0.45            2 %
    Total unit costs plus DD&A(b)   $ 2.43   $ 2.33   4 %

    (a) Excludes stock-based compensation, one-time settlements, and amortization of deferred financing costs.
    (b) Totals may not be exact due to rounding.

    The following table details Range’s average production and realized pricing for second quarter 2025(a):

      2Q25 Production & Realized Pricing
        Natural Gas
    (mcf)    		   Oil (bbl)   NGLs
    (bbl)    		   Natural Gas
    Equivalent (mcfe)
           
                     
    Net production per day     1,497,771       6,382       110,209     2,197,321
                     
    Average NYMEX price   $ 3.44     $ 63.72     $ 23.12    
    Differential, including basis hedging     (0.50 )     (10.95 )        0.61    
    Realized prices before NYMEX hedges     2.94       52.77       23.73     3.35
    Settled NYMEX hedges     0.19       1.45       0.15     0.14
    Average realized prices after hedges   $ 3.13     $ 54.22     $ 23.88   $ 3.49

    (a) Totals may not be exact due to rounding

    Second quarter 2025 natural gas, NGLs and oil price realizations (including the impact of cash-settled hedges and derivative settlements) averaged $3.49 per mcfe.

    • The average natural gas price, including the impact of basis hedging, was $2.94 per mcf, or a ($0.50) per mcf differential to NYMEX. Range continues to expect its 2025 natural gas differential to average ($0.40) to ($0.48) relative to NYMEX.
    • Range’s pre-hedge NGL price during the quarter was $23.73 per barrel, approximately $0.61 above the Mont Belvieu weighted equivalent. Range is improving its expected 2025 NGL differential to average +$0.40 to +$1.25 relative to a Mont Belvieu equivalent barrel.
    • Crude oil and condensate price realizations, before realized hedges, averaged $52.77 per barrel, or $10.95 below WTI (West Texas Intermediate). Range continues to expect its 2025 condensate differential to average ($10.00) to ($15.00) relative to NYMEX.

    Repurchase Activity and Financial Position

    During the second quarter, Range repurchased 1,453,438 shares at an average price of approximately $36.35 per share. As of June 30, 2025, the Company had approximately $900 million of availability under the share repurchase program.

    In May 2025, Range paid off the remaining principal balance of its 4.875% senior notes due 2025 at par by utilizing cash on hand and by borrowing on the bank credit facility. As of June 30, 2025, Range had net debt outstanding of approximately $1.22 billion, consisting of $1.1 billion of senior notes, $125 million on the facility, and $0.1 million in cash.

    Capital Expenditures and Operational Activity

    Second quarter 2025 drilling and completion expenditures were $136 million. In addition, during the quarter, approximately $11 million was invested in acreage, and $7 million was invested in infrastructure, pneumatic devices, and other investments. Year-to-date capital investments of $301 million are approximately $10 million below plan as a result of operational efficiencies. As a result, Range is lowering the high-end of its 2025 capital guide to $680 million.

    During the quarter, Range drilled ~285,000 lateral feet across 20 wells, while turning to sales ~156,000 lateral feet across 12 wells. The added inventory of drilled but not completed laterals places Range on track to exit 2025 with greater than 400,000 lateral feet of growth inventory to support future development.

    The table below summarizes expected 2025 activity plans regarding the number of wells to sales in each area.

          Wells TIL
    1H 2025    		   Remaining
    2025    		   2025
    Planned TIL
    SW PA Super-Rich     5   3   8
    SW PA Wet     17   12   29
    SW PA Dry     0   5   5
    NE PA Dry     0   4   4
    Total Wells     22   24   46
                   

    Guidance – 2025

    Updated Capital & Production Guidance

    Range’s 2025 all-in capital budget is now $650 million – $680 million, improved from prior guidance of $650 million – $690 million. Annual production is now expected to be approximately 2.225 Bcfe per day in 2025, updated from prior guidance of ~2.2 Bcfe per day. Liquids are expected to be over 30% of production.

    Updated Full Year 2025 Expense Guidance

      Updated Guidance   Prior Guidance
    Direct operating expense: $0.12 – $0.13 per mcfe   $0.12 – $0.14 per mcfe
    Transportation, gathering, processing and compression expense: $1.50 – $1.55 per mcfe   $1.50 – $1.55 per mcfe
    Taxes other than income: $0.03 – $0.04 per mcfe   $0.03 – $0.04 per mcfe
    Exploration expense: $24 – $28 million   $24 – $28 million
    G&A expense: $0.17 – $0.18 per mcfe   $0.17 – $0.19 per mcfe
    Net Interest expense: $0.12 – $0.13 per mcfe   $0.12 – $0.13 per mcfe
    DD&A expense: $0.45 – $0.46 per mcfe   $0.45 – $0.46 per mcfe
    Net brokered gas marketing expense: $8 – $12 million   $8 – $12 million
           

    Updated Full Year 2025 Price Guidance

    Based on recent market indications, Range expects to average the following price differentials for its production in 2025.

      Updated Guidance   Prior Guidance
    FY 2025 Natural Gas:(1) NYMEX minus $0.40 to $0.48   NYMEX minus $0.40 to $0.48
    FY 2025 Natural Gas Liquids:(2) MB plus $0.40 to $1.25 per barrel   MB plus $0.25 to $1.25 per barrel
    FY 2025 Oil/Condensate: WTI minus $10.00 to $15.00   WTI minus $10.00 to $15.00

    (1) Including basis hedging
    (2) Mont Belvieu-equivalent pricing based on weighting of 53% ethane, 27% propane, 8% normal butane, 4% iso-butane and 8% natural gasoline.

    Hedging Status

    Range hedges portions of its expected future production volumes to increase the predictability of cash flow and maintain a strong, flexible financial position. Please see the detailed hedging schedule posted on the Range website under Investor Relations – Financial Information.

    Range has also hedged basis across the Company’s numerous natural gas sales points to limit volatility between benchmark and regional prices. The combined fair value of natural gas basis hedges as of June 30, 2025, was a net gain of $19.9 million.

    Conference Call Information

    A conference call to review the financial results is scheduled on Wednesday, July 23 at 8:00 AM Central Time (9:00 AM Eastern Time). Please click here to pre-register for the conference call and obtain a dial in number with passcode.

    A simultaneous webcast of the call may be accessed at www.rangeresources.com. The webcast will be archived for replay on the Company’s website until August 23rd.

    Non-GAAP Financial Measures

    To supplement the presentation of its financial results prepared in accordance with generally accepted accounting principles (GAAP), the Company’s earnings press release contains certain financial measures that are not presented in accordance with GAAP. Management believes certain non-GAAP measures may provide financial statement users with meaningful supplemental information for comparisons within the industry. These non-GAAP financial measures may include, but are not limited to Net Income, excluding certain items, Cash flow from operations before changes in working capital, realized prices, Net debt and Cash margin.

    Adjusted net income comparable to analysts’ estimates as set forth in this release represents income or loss from operations before income taxes adjusted for certain non-cash items (detailed in the accompanying table) less income taxes. We believe adjusted net income comparable to analysts’ estimates is calculated on the same basis as analysts’ estimates and that many investors use this published research in making investment decisions and evaluating operational trends of the Company and its performance relative to other oil and gas producing companies. Diluted earnings per share (adjusted) as set forth in this release represents adjusted net income comparable to analysts’ estimates on a diluted per share basis. A table is included which reconciles income or loss from operations to adjusted net income comparable to analysts’ estimates and diluted earnings per share (adjusted). On its website, the Company provides additional comparative information on prior periods.

    Cash flow from operations before changes in working capital represents net cash provided by operations before changes in working capital and exploration expense adjusted for certain non-cash compensation items. Cash flow from operations before changes in working capital (sometimes referred to as “adjusted cash flow”) is widely accepted by the investment community as a financial indicator of an oil and gas company’s ability to generate cash to internally fund exploration and development activities and to service debt. Cash flow from operations before changes in working capital is also useful because it is widely used by professional research analysts in valuing, comparing, rating and providing investment recommendations of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Cash flow from operations before changes in working capital is not a measure of financial performance under GAAP and should not be considered as an alternative to cash flows from operations, investing, or financing activities as an indicator of cash flows, or as a measure of liquidity. A table is included which reconciles net cash provided by operations to cash flow from operations before changes in working capital as used in this release. On its website, the Company provides additional comparative information on prior periods for cash flow, cash margins and non-GAAP earnings as used in this release.

    The cash prices realized for oil and natural gas production, including the amounts realized on cash-settled derivatives and net of transportation, gathering, processing and compression expense, is a critical component in the Company’s performance tracked by investors and professional research analysts in valuing, comparing, rating and providing investment recommendations and forecasts of companies in the oil and gas exploration and production industry. In turn, many investors use this published research in making investment decisions. Due to the GAAP disclosures of various derivative transactions and third-party transportation, gathering, processing and compression expense, such information is now reported in various lines of the income statement. The Company believes that it is important to furnish a table reflecting the details of the various components of each income statement line to better inform the reader of the details of each amount and provide a summary of the realized cash-settled amounts and third-party transportation, gathering, processing and compression expense, which were historically reported as natural gas, NGLs and oil sales. This information is intended to bridge the gap between various readers’ understanding and fully disclose the information needed.

    Net debt is calculated as total debt less cash and cash equivalents. The Company believes this measure is helpful to investors and industry analysts who utilize Net debt for comparative purposes across the industry.

    The Company discloses in this release the detailed components of many of the single line items shown in the GAAP financial statements included in the Company’s Annual or Quarterly Reports on Form 10-K or 10-Q. The Company believes that it is important to furnish this detail of the various components comprising each line of the Statements of Operations to better inform the reader of the details of each amount, the changes between periods and the effect on its financial results.
      
    We believe that the presentation of PV10 value of our proved reserves is a relevant and useful metric for our investors as supplemental disclosure to the standardized measure, or after-tax amount, because it presents the discounted future net cash flows attributable to our proved reserves before taking into account future corporate income taxes and our current tax structure. While the standardized measure is dependent on the unique tax situation of each company, PV10 is based on prices and discount factors that are consistent for all companies. Because of this, PV10 can be used within the industry and by credit and security analysts to evaluate estimated net cash flows from proved reserves on a more comparable basis.

    RANGE RESOURCES CORPORATION (NYSE: RRC) is a leading U.S. independent natural gas and NGL producer with operations focused in the Appalachian Basin. The Company is headquartered in Fort Worth, Texas.  More information about Range can be found at www.rangeresources.com.

    Included within this release are certain “forward-looking statements” within the meaning of the federal securities laws, including the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, that are not limited to historical facts, but reflect Range’s current beliefs, expectations or intentions regarding future events.  Words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “outlook”, “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” and similar expressions are intended to identify such forward-looking statements.

    All statements, except for statements of historical fact, made within regarding activities, events or developments the Company expects, believes or anticipates will or may occur in the future, such as those regarding future well costs, expected asset sales, well productivity, future liquidity and financial resilience, anticipated exports and related financial impact, NGL market supply and demand, future commodity fundamentals and pricing, future capital efficiencies, future shareholder value, emerging plays, capital spending, anticipated drilling and completion activity, acreage prospectivity, expected pipeline utilization and future guidance information, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management’s assumptions and Range’s future performance are subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements. Further information on risks and uncertainties is available in Range’s filings with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K. Unless required by law, Range undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.

    The SEC permits oil and gas companies, in filings made with the SEC, to disclose proved reserves, which are estimates that geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions as well as the option to disclose probable and possible reserves. Range has elected not to disclose its probable and possible reserves in its filings with the SEC. Range uses certain broader terms such as “resource potential,” “unrisked resource potential,” “unproved resource potential” or “upside” or other descriptions of volumes of resources potentially recoverable through additional drilling or recovery techniques that may include probable and possible reserves as defined by the SEC’s guidelines. Range has not attempted to distinguish probable and possible reserves from these broader classifications. The SEC’s rules prohibit us from including in filings with the SEC these broader classifications of reserves. These estimates are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of actually being realized. Unproved resource potential refers to Range’s internal estimates of hydrocarbon quantities that may be potentially discovered through exploratory drilling or recovered with additional drilling or recovery techniques and have not been reviewed by independent engineers. Unproved resource potential does not constitute reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System and does not include proved reserves. Area wide unproven resource potential has not been fully risked by Range’s management. “EUR”, or estimated ultimate recovery, refers to our management’s estimates of hydrocarbon quantities that may be recovered from a well completed as a producer in the area. These quantities may not necessarily constitute or represent reserves within the meaning of the Society of Petroleum Engineer’s Petroleum Resource Management System or the SEC’s oil and natural gas disclosure rules. Actual quantities that may be recovered from Range’s interests could differ substantially. Factors affecting ultimate recovery include the scope of Range’s drilling program, which will be directly affected by the availability of capital, drilling and production costs, commodity prices, availability of drilling services and equipment, drilling results, lease expirations, transportation constraints, regulatory approvals, field spacing rules, recoveries of gas in place, length of horizontal laterals, actual drilling results, including geological and mechanical factors affecting recovery rates and other factors. Estimates of resource potential may change significantly as development of our resource plays provides additional data.

    In addition, our production forecasts and expectations for future periods are dependent upon many assumptions, including estimates of production decline rates from existing wells and the undertaking and outcome of future drilling activity, which may be affected by significant commodity price or drilling cost changes. Investors are urged to consider closely the disclosure in our most recent Annual Report on Form 10-K, available from our website at www.rangeresources.com or by written request to 100 Throckmorton Street, Suite 1200, Fort Worth, Texas 76102. You can also obtain this Form 10-K on the SEC’s website at www.sec.gov or by calling the SEC at 1-800-SEC-0330.

    SOURCE: Range Resources Corporation

    Range Investor Contacts:

    Laith Sando
    817-869-4267

    Matt Schmid
    817-869-1538

    Range Media Contact:

    Mark Windle
    724-873-3223

    RANGE RESOURCES CORPORATION  
                                       
                                       
    STATEMENTS OF OPERATIONS                                  
    Based on GAAP reported earnings with additional                                  
    details of items included in each line in Form 10-Q                                  
    (Unaudited, In thousands, except per share data)                                  
      Three Months Ended June 30,     Six Months Ended June 30,  
      2025     2024     %     2025     2024     %  
    Revenues and other income:                                  
    Natural gas, NGLs and oil sales (a) $ 666,638     $ 478,450           $ 1,458,558     $ 1,045,451        
    Derivative fair value income (loss)   154,747       16,808             (4,210 )     63,406        
    Brokered natural gas and marketing   33,009       31,393             87,417       60,224        
    ARO settlement gain (loss) (b)   1       –             1       (26 )      
    Interest income (b)   1,762       3,376             4,815       6,319        
    Gain on sale of assets (b)   102       66             164       153        
    Other (b)   16       16             84       38        
    Total revenues and other income   856,275       530,109       62 %     1,546,829       1,175,565       32 %
                                       
    Costs and expenses:                                  
    Direct operating   22,616       22,281             47,452       43,945        
    Direct operating – stock-based compensation (c)   504       471             1,041       968        
    Transportation, gathering, processing and compression   304,714       281,495             610,823       572,370        
    Taxes other than income   7,835       4,974             14,822       10,342        
    Brokered natural gas and marketing   34,183       33,513             91,544       64,408        
    Brokered natural gas and marketing – stock-based compensation (c)   802       583             1,642       1,291        
    Exploration   7,562       6,316             13,606       10,518        
    Exploration – stock-based compensation (c)   366       335             713       659        
    Abandonment and impairment of unproved properties   6,781       1,524             11,355       3,895        
    General and administrative   32,757       31,372             64,310       65,144        
    General and administrative – stock-based compensation (c)   9,326       8,482             19,437       18,460        
    General and administrative – lawsuit settlements   63       287             90       478        
    Exit costs   8,502       10,094             17,399       20,409        
    Deferred compensation plan (d)   (88 )     1,240             2,791       7,645        
    Interest expense   25,630       28,356             53,415       57,472        
    Interest expense – amortization of deferred financing costs (e)   1,166       1,357             2,542       2,717        
    Gain on early extinguishment of debt   –       (179 )           (3 )     (243 )      
    Depletion, depreciation and amortization   91,514       87,598             182,073       174,735        
    Total costs and expenses   554,233       520,099       7 %     1,135,052       1,055,213       8 %
                                       
    Income before income taxes   302,042       10,010       2917 %     411,777       120,352       242 %
                                       
    Income tax expense (benefit)                                  
    Current   4,645       2,399             6,645       3,981        
    Deferred   59,819       (21,093 )           70,502       (4,471 )      
        64,464       (18,694 )           77,147       (490 )      
                                       
    Net income $ 237,578     $ 28,704       728 %   $ 334,630     $ 120,842       177 %
                                       
                                       
    Net income Per Common Share                                  
    Basic $ 0.99     $ 0.12           $ 1.40     $ 0.50        
    Diluted $ 0.99     $ 0.12           $ 1.39     $ 0.49        
                                       
    Weighted average common shares outstanding, as reported                                  
    Basic   238,187       241,125       -1 %     239,106       240,815       -1 %
    Diluted   239,717       242,983       -1 %     240,772       242,766       -1 %
                                       
                                       
    (a) See separate natural gas, NGLs and oil sales information table.  
    (b) Included in Other income in the 10-Q.  
    (c) Costs associated with stock compensation and restricted stock amortization, which have been reflected  
        in the categories associated with the direct personnel costs, which are combined with the cash costs in the 10-Q.  
    (d) Reflects the change in market value of the vested Company stock held in the deferred compensation plan.  
    (e) Included in interest expense in the 10-Q.  
       
    RANGE RESOURCES CORPORATION  
               
               
    BALANCE SHEET          
    (In thousands) June 30,     December 31,  
      2025     2024  
      (Unaudited)     (Audited)  
    Assets          
    Current assets $ 272,616     $ 636,982  
    Derivative assets   51,115       87,098  
    Natural gas and oil properties, net (successful efforts method)   6,535,097       6,421,700  
    Other property and equipment, net   2,736       2,465  
    Operating lease right-of-use assets   170,159       119,838  
    Other   73,388       79,592  
      $ 7,105,111     $ 7,347,675  
               
    Liabilities and Stockholders’ Equity          
    Current liabilities $ 580,744     $ 1,263,247  
    Asset retirement obligations   1,189       1,189  
    Derivative liabilities   1,201       9,634  
               
    Bank debt   121,092       –  
    Senior notes, excluding current maturities   1,090,607       1,089,614  
    Deferred tax liabilities   611,873       541,378  
    Derivative liabilities   23,187       10,488  
    Deferred compensation liabilities   64,262       65,233  
    Operating lease liabilities   109,026       35,737  
    Asset retirement obligations and other liabilities   143,174       137,181  
    Divestiture contract obligation   232,062       257,317  
        2,978,417       3,411,018  
               
    Common stock and retained deficit   4,761,293       4,449,987  
    Other comprehensive income   582       611  
    Common stock held in treasury   (635,181 )     (513,941 )
    Total stockholders’ equity   4,126,694       3,936,657  
      $ 7,105,111     $ 7,347,675  
                   
    RECONCILIATION OF TOTAL DEBT AS REPORTED                
    TO NET DEBT, a non-GAAP measure                
    (Unaudited, in thousands)                
      June 30,     December 31,        
      2025     2024     %  
                     
    Total debt, net of deferred financing costs, as reported $ 1,211,699     $ 1,697,883       -29 %
    Unamortized debt issuance costs, as reported   13,301       10,819        
    Less cash and cash equivalents, as reported   (134 )     (304,490 )      
    Net debt, a non-GAAP measure $ 1,224,866     $ 1,404,212       -13 %
                           
    RANGE RESOURCES CORPORATION  
                           
                           
                           
    CASH FLOWS FROM OPERATING ACTIVITIES                      
    (Unaudited, in thousands)                      
                           
      Three Months Ended June 30,     Six Months Ended June 30,  
      2025     2024     2025     2024  
                           
    Net income $ 237,578     $ 28,704     $ 334,630     $ 120,842  
    Adjustments to reconcile net cash provided from continuing operations:                      
    Deferred income tax expense (benefit)   59,819       (21,093 )     70,502       (4,471 )
    Depletion, depreciation and amortization   91,514       87,598       182,073       174,735  
    Abandonment and impairment of unproved properties   6,781       1,524       11,355       3,895  
    Derivative fair value (income) loss   (154,747 )     (16,808 )     4,210       (63,406 )
    Cash settlements on derivative financial instruments   31,466       128,057       36,039       250,430  
    Divestiture contract obligation, including accretion   8,502       10,062       17,399       20,329  
    Amortization of deferred financing costs and other   962       1,193       2,144       2,425  
    Deferred and stock-based compensation   11,047       11,122       26,130       29,337  
    Gain on sale of assets   (102 )     (66 )     (164 )     (153 )
    Loss (gain) on early extinguishment of debt   –       (179 )     (3 )     (243 )
                           
    Changes in working capital:                      
    Accounts receivable   96,785       (30,541 )     68,064       76,913  
    Other current assets   518       (13,461 )     (8,510 )     (22,405 )
    Accounts payable   (27,023 )     (17,906 )     9,158       (5,718 )
    Accrued liabilities and other   (26,912 )     (19,431 )     (86,754 )     (101,805 )
    Net changes in working capital   43,368       (81,339 )     (18,042 )     (53,015 )
    Net cash provided from operating activities $ 336,188     $ 148,775     $ 666,273     $ 480,705  
                           
                           
                           
    RECONCILIATION OF NET CASH PROVIDED FROM OPERATING                      
    ACTIVITIES, AS REPORTED, TO CASH FLOW FROM OPERATIONS                      
    BEFORE CHANGES IN WORKING CAPITAL, a non-GAAP measure                      
    (Unaudited, in thousands)                      
      Three Months Ended June 30,     Six Months Ended June 30,  
      2025     2024     2025     2024  
    Net cash provided from operating activities, as reported $ 336,188     $ 148,775     $ 666,273     $ 480,705  
    Net changes in working capital   (43,368 )     81,339       18,042       53,015  
    Exploration expense   7,562       6,316       13,606       10,518  
    Lawsuit settlements   63       287       90       478  
    Non-cash compensation adjustment and other   66       185       (109 )     84  
    Cash flow from operations before changes in working capital – non-GAAP measure $ 300,511     $ 236,902     $ 697,902     $ 544,800  
                           
                           
                           
    ADJUSTED WEIGHTED AVERAGE SHARES OUTSTANDING                      
    (Unaudited, in thousands)                      
      Three Months Ended June 30,     Six Months Ended June 30,  
      2025     2024     2025     2024  
    Basic:                      
    Weighted average shares outstanding   238,804       242,647       239,785       242,365  
    Stock held by deferred compensation plan   (617 )     (1,522 )     (679 )     (1,550 )
    Adjusted basic   238,187       241,125       239,106       240,815  
                           
    Dilutive:                      
    Weighted average shares outstanding   238,804       242,647       239,785       242,365  
    Dilutive stock options under treasury method   913       336       987       401  
    Adjusted dilutive   239,717       242,983       240,772       242,766  
                                   
    RANGE RESOURCES CORPORATION  
                                       
                                       
    RECONCILIATION OF NATURAL GAS, NGLs AND OIL SALES                                  
    AND DERIVATIVE FAIR VALUE INCOME (LOSS) TO                                  
    CALCULATED CASH REALIZED NATURAL GAS, NGLs AND                                  
    OIL PRICES WITH AND WITHOUT THIRD-PARTY                                  
    TRANSPORTATION, GATHERING, PROCESSING AND                                  
    COMPRESSION COSTS, a non-GAAP measure                                  
    (Unaudited, In thousands, except per unit data)                      
      Three Months Ended June 30,     Six Months Ended June 30,  
      2025     2024     %     2025     2024     %  
    Natural gas, NGLs and Oil Sales components:                                  
    Natural gas sales $ 397,955     $ 209,652           $ 888,332     $ 481,127        
    NGLs sales   238,034       228,285             513,688       484,361        
    Oil sales   30,649       40,513             56,538       79,963        
    Total Natural Gas, NGLs and Oil Sales, as reported $ 666,638     $ 478,450       39 %   $ 1,458,558     $ 1,045,451       40 %
                                       
    Derivative Fair Value Income (Loss), as reported $ 154,747     $ 16,808           $ (4,210 )   $ 63,406        
    Cash settlements on derivative financial instruments – (gain) loss:                                  
    Natural gas   (29,114 )     (126,194 )           (33,843 )     (247,107 )      
    NGLs   (1,508 )     (1,978 )           (1,096 )     (1,901 )      
    Oil   (844 )     115             (1,100 )     (1,422 )      
    Total change in fair value related to commodity derivatives prior to                                  
    settlement, a non-GAAP measure $ 123,281     $ (111,249 )         $ (40,249 )   $ (187,024 )      
                                       
    Transportation, gathering, processing and compression components:                                  
    Natural Gas $ 154,704     $ 153,040           $ 312,223     $ 303,152        
    NGLs   149,209       128,077             297,047       268,351        
    Oil   801       378             1,553       867        
    Total transportation, gathering, processing and compression, as reported $ 304,714     $ 281,495           $ 610,823     $ 572,370        
                                       
    Natural gas, NGL and Oil sales, including cash-settled derivatives: (c)                                  
    Natural gas sales $ 427,069     $ 335,846           $ 922,175     $ 728,234        
    NGLs sales   239,542       230,263             514,784       486,262        
    Oil Sales   31,493       40,398             57,638       81,385        
    Total $ 698,104     $ 606,507       15 %   $ 1,494,597     $ 1,295,881       15 %
                                       
    Production of natural gas, NGLs and oil during the periods (a):                                  
    Natural Gas (mcf)   136,297,159       136,099,063       0 %     272,260,589       268,749,303       1 %
    NGLs (bbls)   10,029,051       9,376,810       7 %     19,949,040       19,137,533       4 %
    Oil (bbls)   580,791       593,020       -2 %     1,004,370       1,203,299       -17 %
    Gas equivalent (mcfe) (b)   199,956,211       195,918,043       2 %     397,981,049       390,794,295       2 %
                                       
    Production of natural gas, NGLs and oil – average per day (a):                                  
    Natural Gas (mcf)   1,497,771       1,495,594       0 %     1,504,202       1,476,645       2 %
    NGLs (bbls)   110,209       103,042       7 %     110,216       105,151       5 %
    Oil (bbls)   6,382       6,517       -2 %     5,549       6,612       -16 %
    Gas equivalent (mcfe) (b)   2,197,321       2,152,946       2 %     2,198,790       2,147,221       2 %
                                       
    Average prices, excluding derivative settlements and before third-party                                  
    transportation costs:                                  
    Natural Gas (per mcf) $ 2.92     $ 1.54       90 %   $ 3.26     $ 1.79       82 %
    NGLs (per bbl) $ 23.73     $ 24.35       -3 %   $ 25.75     $ 25.31       2 %
    Oil (per bbl) $ 52.77     $ 68.32       -23 %   $ 56.29     $ 66.45       -15 %
    Gas equivalent (per mcfe) (b) $ 3.33     $ 2.44       36 %   $ 3.66     $ 2.68       37 %
                                       
    Average prices, including derivative settlements before third-party                                  
    transportation costs: (c)                                  
    Natural Gas (per mcf) $ 3.13     $ 2.47       27 %   $ 3.39     $ 2.71       25 %
    NGLs (per bbl) $ 23.88     $ 24.56       -3 %   $ 25.80     $ 25.41       2 %
    Oil (per bbl) $ 54.22     $ 68.12       -20 %   $ 57.39     $ 67.63       -15 %
    Gas equivalent (per mcfe) (b) $ 3.49     $ 3.10       13 %   $ 3.75     $ 3.32       13 %
                                       
    Average prices, including derivative settlements and after third-party                                  
    transportation costs: (d)                                  
    Natural Gas (per mcf) $ 2.00     $ 1.34       49 %   $ 2.24     $ 1.58       42 %
    NGLs (per bbl) $ 9.01     $ 10.90       -17 %   $ 10.91     $ 11.39       -4 %
    Oil (per bbl) $ 52.84     $ 67.48       -22 %   $ 55.84     $ 66.91       -17 %
    Gas equivalent (per mcfe) (b) $ 1.97     $ 1.66       19 %   $ 2.22     $ 1.85       20 %
                                       
    Transportation, gathering and compression expense per mcfe $ 1.52     $ 1.44       6 %   $ 1.53     $ 1.47       4 %
                                       
    (a) Represents volumes sold regardless of when produced.  
    (b) Oil and NGLs are converted at the rate of one barrel equals six mcfe based upon the approximate relative energy content of oil to natural gas, which is not necessarily  
    indicative of the relationship of oil and natural gas prices.  
    (c) Excluding third-party transportation, gathering, processing and compression costs.  
    (d) Net of transportation, gathering, processing and compression costs.  
       
    RANGE RESOURCES CORPORATION  
                                       
                                       
                                       
    RECONCILIATION OF INCOME BEFORE INCOME                                  
    TAXES AS REPORTED TO INCOME BEFORE INCOME TAXES                                  
    EXCLUDING CERTAIN ITEMS, a non-GAAP measure                                  
    (Unaudited, In thousands, except per share data)                                  
      Three Months Ended June 30,     Six Months Ended June 30,  
      2025     2024     %     2025     2024     %  
                                       
    Income from operations before income taxes, as reported $ 302,042     $ 10,010       2917 %   $ 411,777     $ 120,352       242 %
    Adjustment for certain special items:                                  
    Gain on the sale of assets   (102 )     (66 )           (164 )     (153 )      
    ARO settlement (gain) loss   (1 )     –             (1 )     26        
    Change in fair value related to derivatives prior to settlement   (123,281 )     111,249             40,249       187,024        
    Abandonment and impairment of unproved properties   6,781       1,524             11,355       3,895        
    Loss (gain) on early extinguishment of debt   –       (179 )           (3 )     (243 )      
    Lawsuit settlements   63       287             90       478        
    Exit costs   8,502       10,094             17,399       20,409        
    Brokered natural gas and marketing – stock-based compensation   802       583             1,642       1,291        
    Direct operating – stock-based compensation   504       471             1,041       968        
    Exploration expenses – stock-based compensation   366       335             713       659        
    General & administrative – stock-based compensation   9,326       8,482             19,437       18,460        
    Deferred compensation plan – non-cash adjustment   (88 )     1,240             2,791       7,645        
                                       
    Income before income taxes, as adjusted   204,914       144,030       42 %     506,326       360,811       40 %
                                       
    Income tax expense, as adjusted                                  
    Current   4,645       2,399             6,645       3,981        
    Deferred (a)   42,485       30,728             109,810       79,006        
                                       
    Net income, excluding certain items, a non-GAAP measure $ 157,784     $ 110,903       42 %   $ 389,871     $ 277,824       40 %
                                       
    Non-GAAP income per common share                                  
    Basic $ 0.66     $ 0.46       43 %   $ 1.63     $ 1.15       42 %
    Diluted $ 0.66     $ 0.46       43 %   $ 1.62     $ 1.14       42 %
                                       
    Non-GAAP diluted shares outstanding, if dilutive   239,717       242,983             240,772       242,766        
                                       
                                       
                                       
    (a) Taxes are estimated to be approximately 23% for 2024 and 2025  
       
    RANGE RESOURCES CORPORATION  
                           
                           
                           
    RECONCILIATION OF NET INCOME, EXCLUDING                      
    CERTAIN ITEMS AND ADJUSTED EARNINGS PER                      
    SHARE, non-GAAP measures                      
    (In thousands, except per share data)                      
      Three Months Ended June 30,     Six Months Ended June 30,  
      2025     2024     2025     2024  
                           
    Net income, as reported $ 237,578     $ 28,704     $ 334,630     $ 120,842  
    Adjustments for certain special items:                      
    Gain on the sale of assets   (102 )     (66 )     (164 )     (153 )
    ARO settlement (gain) loss   (1 )     –       (1 )     26  
    Gain on early extinguishment of debt   –       (179 )     (3 )     (243 )
    Change in fair value related to derivatives prior to settlement   (123,281 )     111,249       40,249       187,024  
    Abandonment and impairment of unproved properties   6,781       1,524       11,355       3,895  
    Lawsuit settlements   63       287       90       478  
    Exit costs   8,502       10,094       17,399       20,409  
    Stock-based compensation   10,998       9,871       22,833       21,378  
    Deferred compensation plan   (88 )     1,240       2,791       7,645  
    Tax impact   17,334       (51,821 )     (39,308 )     (83,477 )
                           
    Net income, excluding certain items, a non-GAAP measure $ 157,784     $ 110,903     $ 389,871     $ 277,824  
                           
    Net income per diluted share, as reported $ 0.99     $ 0.12     $ 1.39     $ 0.49  
    Adjustments for certain special items per diluted share:                      
    Gain on the sale of assets   –       –       –       –  
    ARO settlement (gain) loss   –       –       –       –  
    Gain on early extinguishment of debt   –       –       –       –  
    Change in fair value related to derivatives prior to settlement   (0.51 )     0.46       0.17       0.77  
    Abandonment and impairment of unproved properties   0.03       0.01       0.05       0.02  
    Lawsuit settlements   –       –       –       –  
    Exit costs   0.04       0.04       0.07       0.08  
    Stock-based compensation   0.05       0.04       0.09       0.09  
    Deferred compensation plan   –       0.01       0.01       0.03  
    Adjustment for rounding differences   (0.01 )     (0.01 )     –       –  
    Tax impact   0.07       (0.21 )     (0.16 )     (0.34 )
    Dilutive share impact (rabbi trust and other)   –       –       –       –  
                           
    Net income per diluted share, excluding certain items, a non-GAAP measure $ 0.66     $ 0.46     $ 1.62     $ 1.14  
                           
    Adjusted earnings per share, a non-GAAP measure:                      
    Basic $ 0.66     $ 0.46     $ 1.63     $ 1.15  
    Diluted $ 0.66     $ 0.46     $ 1.62     $ 1.14  
                                   
    RANGE RESOURCES CORPORATION  
                           
                           
    RECONCILIATION OF CASH MARGIN PER MCFE, a non-                      
    GAAP measure                      
    (Unaudited, In thousands, except per unit data)                      
      Three Months Ended June 30,     Six Months Ended June 30,  
      2025     2024     2025     2024  
                           
    Revenues                      
    Natural gas, NGLs and oil sales, as reported $ 666,638     $ 478,450     $ 1,458,558     $ 1,045,451  
    Derivative fair value income (loss), as reported   154,747       16,808       (4,210 )     63,406  
    Less non-cash fair value (gain) loss   (123,281 )     111,249       40,249       187,024  
    Brokered natural gas and marketing, as reported   33,009       31,393       87,417       60,224  
    Other income, as reported   1,881       3,458       5,064       6,484  
    Less gain on sale of assets   (102 )     (66 )     (164 )     (153 )
    Less ARO settlement   (1 )     –       (1 )     26  
    Cash revenues   732,891       641,292       1,586,913       1,362,462  
                           
    Expenses                      
    Direct operating, as reported   23,120       22,752       48,493       44,913  
    Less direct operating stock-based compensation   (504 )     (471 )     (1,041 )     (968 )
    Transportation, gathering and compression, as reported   304,714       281,495       610,823       572,370  
    Taxes other than income, as reported   7,835       4,974       14,822       10,342  
    Brokered natural gas and marketing, as reported   34,985       34,096       93,186       65,699  
    Less brokered natural gas and marketing stock-based compensation   (802 )     (583 )     (1,642 )     (1,291 )
    General and administrative, as reported   42,146       40,141       83,837       84,082  
    Less G&A stock-based compensation   (9,326 )     (8,482 )     (19,437 )     (18,460 )
    Less lawsuit settlements   (63 )     (287 )     (90 )     (478 )
    Interest expense, as reported   26,796       29,713       55,957       60,189  
    Less amortization of deferred financing costs   (1,166 )     (1,357 )     (2,542 )     (2,717 )
    Cash expenses   427,735       401,991       882,366       813,681  
                           
    Cash margin, a non-GAAP measure $ 305,156     $ 239,301     $ 704,547     $ 548,781  
                           
    Mmcfe produced during period   199,956       195,918       397,981       390,794  
                           
    Cash margin per mcfe $ 1.53     $ 1.22     $ 1.77     $ 1.40  
                           
    RECONCILIATION OF INCOME BEFORE INCOME TAXES                      
    TO CASH MARGIN, a non-GAAP measure                      
    (Unaudited, in thousands, except per unit data)                      
      Three Months Ended June 30,     Six Months Ended June 30,  
      2025     2024     2025     2024  
                           
    Income before income taxes, as reported $ 302,042     $ 10,010     $ 411,777     $ 120,352  
    Adjustments to reconcile income before income taxes                      
    to cash margin:                      
    ARO settlements   (1 )     –       (1 )     26  
    Derivative fair value (income) loss   (154,747 )     (16,808 )     4,210       (63,406 )
    Net cash receipts on derivative settlements   31,466       128,057       36,039       250,430  
    Exploration expense   7,562       6,316       13,606       10,518  
    Lawsuit settlements   63       287       90       478  
    Exit costs   8,502       10,094       17,399       20,409  
    Deferred compensation plan   (88 )     1,240       2,791       7,645  
    Stock-based compensation (direct operating, brokered natural gas and   10,998       9,871       22,833       21,378  
    marketing and general and administrative)                      
    Bad debt expense   –       –       –       –  
    Interest – amortization of deferred financing costs   1,166       1,357       2,542       2,717  
    Depletion, depreciation and amortization   91,514       87,598       182,073       174,735  
    Gain on sale of assets   (102 )     (66 )     (164 )     (153 )
    Gain on early extinguishment of debt   –       (179 )     (3 )     (243 )
    Abandonment and impairment of unproved properties   6,781       1,524       11,355       3,895  
    Cash margin, a non-GAAP measure $ 305,156     $ 239,301     $ 704,547     $ 548,781  

    The MIL Network –

  • MIL-Evening Report: Central bank independence and credibility matters. Here’s why

    Source: The Conversation (Au and NZ) – By John Simon, Adjunct Fellow in Economics, Macquarie University

    Olga Kashubin/Shutterstock

    In the United States, President Donald Trump has been pressuring the chairman of the US Federal Reserve, Jerome Powell, to slash interest rates. This is partly to ease the interest payments on the ballooning US government debt.

    Powell has so far resisted, but Trump has also threatened to replace him with someone who will do what he asks.

    In Australia, after the Reserve Bank’s surprise decision to hold interest rates steady this month, some commentators have wondered if the central bank had “betrayed” Australians. Treasurer Jim Chalmers pointedly remarked:

    It’s not the result millions of Australians were hoping for or what the market was expecting.

    On Tuesday, the Reserve Bank released the minutes of that controversial policy-setting meeting, which said some economic data was slightly stronger than expected. The majority of the board believed:

    lowering the cash rate a third time within the space of four meetings would be unlikely to be consistent with the strategy of easing monetary policy in a cautious and gradual manner.

    Can’t rates just be kept low?

    Wouldn’t we be better off if central banks kept interest rates low, as some politicians and borrowers were hoping for? It would certainly help those of us with mortgages.

    Surprisingly, the answer is no.

    We are better off when central banks set interest rates with a view on the longer run rather than just the short-term demands of politicians and borrowers.

    To see why we can look at history to see what happens when a central bank isn’t independent.

    Why does independence matter?

    In the 1970s the chairman of the US Federal Reserve, Arthur Burns, was pressured to cut interest rates in the run-up to the 1972 election. He dutifully did so and, while President Richard Nixon was re-elected, this led to “stagflation” – with inflation, unemployment and even interest rates, higher than before interest rates were cut.

    A more recent example of political pressure can be seen in Turkey where the president pressured the central bank to cut interest rates. He hoped to stimulate the economy and believed higher interest rates caused higher inflation.

    Unfortunately, lower rates were shortly followed by higher inflation and, ultimately, much higher interest rates.

    And today in the US, even though Powell has so far resisted Trump’s pressure, financial markets are shaken and long-term interest rates go up when Trump talks about replacing him.

    Lower interest rates can be like a caffeinated energy drink – they give you a short-term energy boost, but can leave you tired, irritable and with a headache when the effects wear off.

    So, why does this happen? It’s all about expectations.

    Expectations about the future matter

    A central bank influences the economy both through what it does and what people expect it to do. The ability to shape expectations is a powerful tool for central banks, especially during crises such as the COVID pandemic, when official interest rates were close to zero.

    Imagine, for example, you are about to take out a mortgage. In making this decision you will likely think not just about current interest rates and your ability to make repayments, but what is likely to happen to future interest rates, your wages and inflation.

    Credibility is the key to successfully shaping people’s expectations. If a central bank is independent and credible, consumers and businesses will listen to what it says and adjust their expectations accordingly.

    The chart below illustrates this point.

    Macquarie University’s Business Outlook Scenarios Survey asks businesses if they believe the Reserve Bank will meet its inflation goals. Those that do trust the bank (the line labelled “certain”) have lower inflation expectations than those that don’t (the line labelled “uncertain”).

    Importantly, the expectations of those that trust the bank to meet its inflation goals tend to align with the bank’s 2–3% inflation target over the business cycle.

    And these expectations affect what businesses and consumers do today.

    So, how credible is the Reserve Bank today?

    Despite the surprise hold, Australians still trust the RBA

    Data from the Business Outlook Scenarios Survey shows the Reserve Bank has rebuilt its credibility since its 2021 “promise” not to raise interest rates until 2024. It has done this by reforming its board structure and membership, being more open and, most critically, by hitting the inflation target.

    Indeed, the most recent survey data shows that, if anything, the surprise decision increased people’s confidence in the bank’s ability to control inflation.

    In July, the survey was in the field between July 7 and 10. The Reserve Bank made its announcement on July 8. Out of 512 businesses surveyed, 368 completed it before the announcement and 144 completed it after the announcement.

    Overall, more than 40% of businesses surveyed were certain the Reserve Bank will achieve its inflation target. This is up from less than 10% a year ago. And, those who completed the survey after the announcement were more likely to trust the Reserve Bank than those that who completed it before the announcement.

    So next time you hear politicians and commentators calling for immediate interest rate cuts, you should hope the Reserve Bank ignores those calls and focuses on the longer term. Overseas experience shows things do not end well when politicians start determining interest rates.

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

    – ref. Central bank independence and credibility matters. Here’s why – https://theconversation.com/central-bank-independence-and-credibility-matters-heres-why-260198

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: S. 237, Honoring Our Fallen Heroes Act of 2025

    Source: US Congressional Budget Office

    Bill Summary

    S. 237 would expand eligibility for death, disability, and education benefits provided by the Public Safety Officer’s Benefit (PSOB) program to public safety officers and their beneficiaries if an officer dies or becomes permanently and totally disabled as a direct result of a cancer covered under the bill. S. 237 would apply retroactively to officers who die or become disabled on or after January 1, 2020. The bill would require the Department of Justice (DOJ) to review the list of cancers covered by the bill at least once every three years.

    S. 237 also would extend the deadline to file a claim for benefits under the PSOB program for officers and their beneficiaries for officers who die or become permanently and totally disabled from COVID-19. Under current law, the deadline to file such a claim was May 11, 2023, when the public health emergency declared during the coronavirus pandemic ended.

    Estimated Federal Cost

    The estimated budgetary effect of S. 237 is shown in Table 1. The costs of the legislation fall within budget function 750 (administration of justice).

    Table 1.

    Estimated Budgetary Effects of S. 237
     

    By Fiscal Year, Millions of Dollars

    		    
     

    2025

    2026

    2027

    2028

    2029

    2030

    2031

    2032

    2033

    2034

    2035

    2025-2030

    2025-2035
     

    Increases in Direct Spending

    		    

    Estimated Budget Authority

    0

    22

    50

    43

    30

    26

    23

    18

    17

    18

    18

    171

    265

    Estimated Outlays

    0

    15

    40

    45

    34

    27

    23

    19

    17

    17

    18

    161

    255
     

    Increases in Spending Subject to Appropriation

    		    

    Estimated Authorization

    *

    6

    15

    16

    13

    11

    n.e.

    n.e.

    n.e.

    n.e.

    n.e.

    61

    n.e.

    Estimated Outlays

    *

    5

    14

    16

    13

    11

    n.e.

    n.e.

    n.e.

    n.e.

    n.e.

    59

    n.e.

    Basis of Estimate

    CBO assumes that the bill will be enacted near the end of fiscal year 2025. The estimate is based on CBO’s analysis of cancer incidence and mortality among the general population of the United States and a review of the medical literature related to cancer incidence and mortality among public safety officers, including firefighters. The estimate is also based on CBO’s projections of the number of deaths among public safety officers that are likely to be related to cancer and the number of officers or their beneficiaries who apply for and receive benefits under the PSOB program.

    Background

    The PSOB program is administered by DOJ to provide cash benefits to federal, state, and local public safety officers and their beneficiaries in the event of death or permanent and total disability resulting from physical injuries and certain mental health conditions, such as post-traumatic stress disorder. Education benefits are also available to eligible spouses and children of officers who die or become disabled in the line of duty. Public safety officers include those working in law enforcement, firefighters, emergency management, and emergency medical services.

    The program already provides benefits to World Trade Center responders and their beneficiaries who die or become disabled from cancer from exposure to a carcinogen after the terrorist attacks on September 11, 2001. CBO is unaware of the program approving any death or disability claim related to cancer that does not stem from attacks on September 11, 2001.

    Eligibility Under the Bill

    Under S. 237, an exposure to a carcinogen would qualify as an injury in the line of duty if an officer later dies or becomes permanently and totally disabled as a direct result of cancer. The bill would direct DOJ to presume that a qualifying injury caused the death or disability if the officer:

    • Was exposed to a carcinogen while in the line of duty;
    • Served for at least five years before being diagnosed with cancer; and
    • Received a diagnosis of cancer within 15 years of leaving service.

    The presumption would not apply if DOJ determines, based on competent medical evidence, that the exposure to a carcinogen was not a substantial factor in an officer’s death or disability.

    Direct Spending

    The PSOB program pays a one-time death benefit to spouses and children or other designated beneficiaries of officers who die in the line of duty. The cost of those benefits is classified in the budget as direct spending. In 2025, the one-time benefit is $448,575; under current law, that amount increases each year to account for inflation.

    Cancer Claims. CBO expects that most relatives of potentially eligible officers would apply for benefits. Based on information from DOJ and other similar programs, such as the September 11th Victim Compensation Fund, CBO estimates that about 75 percent of claims for cancer-related deaths among public safety officers would ultimately result in benefits being paid to family members or designated beneficiaries. CBO expects that firefighters would account for most claims under the bill.

    Using data from the Centers for Disease Control and Prevention (CDC) on cancer mortality among the general population and a review of medical literature regarding cancer incidence and mortality among firefighters, CBO estimates that, on average, about 40 claims would be filed annually over the 2025-2035 period.

    S. 237 also would require benefits to be awarded for cancer deaths occurring between January 1, 2020, and the date of enactment. CBO estimates that about 200 claims would be submitted for officers who died from cancer during that period and that those claims would be filed within three years of enactment.

    COVID-19 Claims. Additionally, the bill would extend by three years the deadline to file a claim for death benefits for spouses, children, or other beneficiaries of officers who die from COVID-19. Under current law, an officer is presumed to be eligible by DOJ if the officer was diagnosed with COVID-19 within 45 days of the last day of duty and medical evidence indicates that the officer had the virus or complications from the virus at the time of death. Under current law, the deadline to file such a claim was May 11, 2023, when the public health emergency related to the coronavirus pandemic was lifted. Using information from DOJ about the number of those claims it received between 2020 and 2023 and data from the CDC on COVID-19 mortality, CBO estimates that about 150 claims would be submitted for officers who die from COVID-19.

    In total, CBO estimates that under the bill, about 765 claims would be filed over the 2025-2035 period. Based on the amount of time CBO estimates that it would take DOJ to process each eligible claim, CBO estimates that about 530 claims would be approved for benefits over the next decade under S. 237. (About 30 claims filed during that period would be approved after 2035.) Accounting for expected increases in inflation, CBO estimates that enacting S. 237 would increase direct spending by $255 million over the 2025-2035 period.

    Spending Subject to Appropriation

    By expanding the scope of qualifying deaths and injuries, S. 237 also would increase the number of claimants eligible for disability and education benefits under the PSOB program. Spending for those benefits is subject to the availability of appropriated funds. DOJ also would incur administrative costs to implement the bill. In total, CBO estimates that implanting S. 237 would cost $59 million over the 2025-2030 period (see Table 2). That spending would be subject to the availability of appropriated funds.

    Disability Benefits. Under current law, the PSOB program pays benefits for permanent and total disability resulting from injuries suffered in the line of duty. Under current law, claimants receive a one-time benefit that is the same amount as the death benefit ($448,575 in 2025), which increases each year to account for inflation. In total, CBO estimates that the cost of disability benefits under S. 237 would be $24 million over the 2025-2030 period.

    Table 2.

    Estimated Increases in Spending Subject to Appropriation Under S. 237
     

    By Fiscal Year, Millions of Dollars

    		  
     

    2025

    2026

    2027

    2028

    2029

    2030

    2025-2030

    Disability Benefits

    		              

    Estimated Authorization

    0

    1

    5

    7

    6

    5

    24

    Estimated Outlays

    0

    1

    5

    7

    6

    5

    24

    Education Benefits

    		              

    Estimated Authorization

    0

    4

    9

    8

    6

    5

    32

    Estimated Outlays

    0

    3

    8

    8

    6

    5

    30

    Administrative Costs

    		              

    Estimated Authorization

    *

    1

    1

    1

    1

    1

    5

    Estimated Outlays

    *

    1

    1

    1

    1

    1

    5

    Total Changes

    		              

    Estimated Authorization

    *

    6

    15

    16

    13

    11

    61

    Estimated Outlays

    *

    5

    14

    16

    13

    11

    59

    Cancer Claims. S. 237 would designate an exposure to a carcinogen as an injury in the line of duty if an officer later becomes permanently disabled as a direct result of cancer. Using information from DOJ about the historical number of claims, CBO expects that fewer claims for disability benefits would be filed under the bill than claims for death benefits. On that basis, CBO estimates that one claim for disability benefits would be filed for every three claims for death benefits. Additionally, based on conversations with DOJ and subject matter experts, CBO expects that most officers affected by cancer would not meet the permanently and totally disabled threshold. Based on historical approval rates for disability-related claims, CBO estimates that about 50 percent of claims for disability claims would ultimately be approved.

    Under the bill, CBO estimates that about 120 claims for disability benefits related to cancer would be filed over the 2025-2030 period. Using information from DOJ about the time it takes to process each claim, CBO estimates that about 50 claims would be approved over the same period. (About 10 additional claims filed during the period would be approved after 2030.)

    COVID-19 Claims. S. 237 also would extend by three years the deadline to file a claim for benefits under the PSOB program for officers who become permanently and totally disabled from COVID-19. Using data from DOJ about the number of those claims filed and approved over the 2020-2023 period, CBO estimates that under S. 237 fewer than five claims would be approved for officers who become disabled from COVID-19.

    Education Benefits. Under current law, the spouse or children of a public safety officer who dies or becomes permanently disabled from physical injuries and certain mental health conditions may also be eligible for education benefits to cover tuition, fees, books, supplies and room and board. The monthly benefit for a full-time student in 2025 is $1,536; that amount is adjusted each year for inflation. Under current law, the maximum duration of benefits is 45 months of full-time education or a proportionate duration of part-time education.

    Historical data from the PSOB program indicate that about three claims for education benefits have been approved for every two claims that have been approved for death and disability benefits. On that basis, CBO estimates that about 360 claims stemming from death benefits and about 50 claims stemming from disability benefits will be approved over the 2025-2030 period under S. 237. Using information about the time it takes to process claims for education benefits, CBO estimates that about 650 people will receive benefits over the 2025-2030 period under the bill. In total, CBO estimates that those benefits would cost $30 million over the 2025-2030 period. Those outlays reflect the historical spending patterns for such claims.

    Administrative Costs. As discussed above, implementing S. 237 would require DOJ to review more than 150 additional claims annually under the bill. Using information from the agency about the number of staff required to process claims under current law, CBO estimates that implementing the bill would require an additional five people each year to process claims and review the list of eligible cancers at a cost of $1 million annually. In total, CBO estimates that DOJ would incur $5 million in administrative costs over the 2025-2030 period.

    Uncertainty

    CBO’s cost estimate for S. 237 is subject to significant uncertainty in several areas:

    • Identifying public safety officers’ rate of incidence and deaths from cancer and COVID-19;
    • Estimating the number of people who would be eligible to file claims for benefits under the bill;
    • Calculating the proportion of claims that DOJ would determine to be eligible, which is affected by the latency periods for different cancers and other circumstances specific to each officer’s medical history and lifestyle; and
    • Anticipating the timing of submissions and the amount of time required to review applications and process claims.

    CBO strives for estimates that are in the middle of possible outcomes and each factor in the estimate could be higher or lower than CBO estimates. As a result, enacting the bill could result in higher or lower costs than CBO estimates.

    Pay-As-You-Go Considerations

    The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. The net changes in outlays that are subject to those pay-as-you-go procedures are shown in Table 3.

    Table 3.

    CBO’s Estimate of the Statutory Pay-As-You-Go Effects of S. 237, the Honoring Our Fallen Heroes Act of 2025, as Reported by the Senate Committee on the Judiciary on May 20, 2025
     

    By Fiscal Year, Millions of Dollars

    		    
     

    2025

    2026

    2027

    2028

    2029

    2030

    2031

    2032

    2033

    2034

    2035

    2025-2030

    2025-2035
     

    Net Increase in the Deficit 

    		    

    Pay-As-You-Go Effect

    0

    15

    40

    45

    34

    27

    23

    19

    17

    17

    18

    161

    255

    Increase in Long-Term Net Direct Spending and Deficits

    CBO estimates that enacting S. 237 would not increase net direct spending by more than $2.5 billion in any of the four consecutive 10-year periods beginning in 2036.

    CBO estimates that enacting S. 237 would not increase on‑budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2036.

    Mandates

    The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act.

    Federal Costs: Jeremy Crimm

    Mandates: Erich Dvorak

    Estimate Reviewed By

    Justin Humphrey
    Chief, Finance, Housing, and Education Cost Estimates Unit

    Kathleen FitzGerald 
    Chief, Public and Private Mandates Unit

    H. Samuel Papenfuss 
    Deputy Director of Budget Analysis

    Phillip L. Swagel

    Director, Congressional Budget Office

    MIL OSI USA News –

  • MIL-OSI: Hanmi Reports 2025 Second Quarter Results

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, July 22, 2025 (GLOBE NEWSWIRE) — Hanmi Financial Corporation (NASDAQ: HAFC, or “Hanmi”), the parent company of Hanmi Bank (the “Bank”), today reported financial results for the second quarter of 2025.

    Net income for the second quarter of 2025 was $15.1 million, or $0.50 per diluted share, compared with $17.7 million, or $0.58 per diluted share for the first quarter of 2025. The return on average assets for the second quarter of 2025 was 0.79% and the return on average equity was 7.48%, compared with a return on average assets of 0.94% and a return on average equity of 8.92% for the first quarter of 2025.

    CEO Commentary

    “Hanmi delivered solid performance in the second quarter, highlighted by strong operational metrics,” said Bonnie Lee, President and Chief Executive Officer. “We further expanded our net interest margin to 3.07%, and grew preprovision net revenue by 3.7%, primarily driven by lower funding costs.”

    “Loans grew 1.6% on an annualized basis with healthy C&I and residential mortgage loan production. Our relationship-based model continued to drive deposit growth, up 1.7% for the quarter. Noninterest-bearing demand deposit balances remained strong, accounting for over 30% of total deposits.”

    “Our second quarter net income was impacted by credit loss expense; however, importantly, asset quality remained excellent with significant improvement from the prior quarter. Criticized loans, nonaccrual loans and delinquent loans all declined notably. Looking to the second half of the year, we are encouraged by the strength of our loan pipeline and remain focused on deepening client relationships, expanding our market presence and leveraging our balance sheet to deliver sustainable long-term growth.”

    Second Quarter 2025 Highlights:

    • Second quarter net income was $15.1 million, or $0.50 per diluted share, compared with $17.7 million, or $0.58 per diluted share in the first quarter; the decline was driven by credit loss expense of $7.6 million.
    • Preprovision net revenue1 grew 3.7%, or $1.0 million, reflecting a 3.7% increase in net interest income, a five basis point increase in the net interest margin, a 4.5% increase in noninterest income and well-managed noninterest expenses with the efficiency ratio remaining unchanged at 55.7%.
    • Asset quality improved significantly from the first quarter – criticized loans dropped 71.8% to 0.74% of total loans reflecting $85.3 million in loan upgrades of two CRE loans, a $20.0 million loan payment, and an $8.6 million loan charge-off; nonaccrual loans fell 26.8% to 0.41% of total loans reflecting the loan charge-off; and loan delinquencies declined to 0.17% of total loans.
    • Loans receivables were $6.31 billion at June 30, 2025, up 0.4% from the end of the first quarter of 2025; loan production for the second quarter was $329.6 million, with a weighted average interest rate of 7.10%.
    • Deposits were $6.73 billion at June 30, 2025, up 1.7% from the end of the first quarter of 2025; noninterest-bearing demand deposits at June 30, 2025 were 31.3% of total deposits.
    • Hanmi’s capital position remains strong with the ratio of tangible common equity to tangible assets2 at 9.58% and the common equity tier 1 capital ratio at 12.12%; both essentially unchanged from the first quarter; tangible book value per share3 was $24.91.

    ____________________________________
    1 See non-GAAP reconciliation provided at the end of this news release.

    For more information about Hanmi, please see the Q2 2025 Investor Update (and Supplemental Financial Information), which is available on the Bank’s website at www.hanmi.com and via a current report on Form 8-K on the website of the Securities and Exchange Commission at www.sec.gov. Also, please refer to “Non-GAAP Financial Measures” herein for further details of the presentation of certain non-GAAP financial measures.

    Quarterly Highlights
    (Dollars in thousands, except per share data)

        As of or for the Three Months Ended     Amount Change  
        June 30,     March 31,     December 31,     September 30,     June 30,     Q2-25     Q2-25  
        2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
                                               
    Net income   $ 15,117     $ 17,672     $ 17,695     $ 14,892     $ 14,451     $ (2,555 )   $ 666  
    Net income per diluted common share   $ 0.50     $ 0.58     $ 0.58     $ 0.49     $ 0.48     $ (0.08 )   $ 0.02  
                                               
    Assets   $ 7,862,363     $ 7,729,035     $ 7,677,925     $ 7,712,299     $ 7,586,347     $ 133,328     $ 276,016  
    Loans receivable   $ 6,305,957     $ 6,282,189     $ 6,251,377     $ 6,257,744     $ 6,176,359     $ 23,768     $ 129,598  
    Deposits   $ 6,729,122     $ 6,619,475     $ 6,435,776     $ 6,403,221     $ 6,329,340     $ 109,647     $ 399,782  
                                               
    Return on average assets     0.79 %     0.94 %     0.93 %     0.79 %     0.77 %     -0.15       0.02  
    Return on average stockholders’ equity     7.48 %     8.92 %     8.89 %     7.55 %     7.50 %     -1.44       -0.02  
                                               
    Net interest margin     3.07 %     3.02 %     2.91 %     2.74 %     2.69 %     0.05       0.38  
    Efficiency ratio (1)     55.74 %     55.69 %     56.79 %     59.98 %     62.24 %     0.05       -6.50  
                                               
    Tangible common equity to tangible assets (2)     9.58 %     9.59 %     9.41 %     9.42 %     9.19 %     -0.01       0.39  
    Tangible common equity per common share (2)   $ 24.91     $ 24.49     $ 23.88     $ 24.03     $ 22.99       0.42       1.92  
                                               
    (1) Noninterest expense divided by net interest income plus noninterest income.  
    (2) Refer to “Non-GAAP Financial Measures” for further details.  


    Results of Operations
    Net interest income for the second quarter was $57.1 million, up 3.7% from $55.1 million for the first quarter of 2025. The increase reflected the benefit of lower rates on interest-bearing liabilities, a higher volume of interest-earning assets and one additional day in the quarter. Average interest-earning assets increased 1.2% while the average yield decreased by one basis point. Average loans receivable increased 1.1% while the average yield decreased by two basis points to 5.93%. Average interest-bearing liabilities increased 0.9% while the average rate paid declined seven basis points. Average interest-bearing deposits, however, increased 3.7% while the average rate paid declined by five basis points to 3.64%, primarily due to lower rates paid on time deposits. Average borrowings fell 66.5% while the average rate paid increased one basis point. 

    Net interest margin (taxable equivalent) for the second quarter was 3.07%, up five basis points from 3.02% for the first quarter of 2025. The increase in the net interest margin reflected principally the benefit from lower average borrowings and a higher average balance of interest-bearing deposits in other banks.

    ____________________________________
    2 See non-GAAP reconciliation provided at the end of this news release.
    3 See non-GAAP reconciliation provided at the end of this news release.

        For the Three Months Ended (in thousands)     Percentage Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
    Net Interest Income   2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
                                               
    Interest and fees on loans receivable (1)   $ 92,589     $ 90,887     $ 91,545     $ 92,182     $ 90,752       1.9 %     2.0 %
    Interest on securities     6,261       6,169       5,866       5,523       5,238       1.5 %     19.5 %
    Dividends on FHLB stock     354       360       360       356       357       -1.7 %     -0.8 %
    Interest on deposits in other banks     2,129       1,841       2,342       2,356       2,313       15.6 %     -8.0 %
    Total interest and dividend income   $ 101,333     $ 99,257     $ 100,113     $ 100,417     $ 98,660       2.1 %     2.7 %
                                               
    Interest on deposits     41,924       40,559       43,406       47,153       46,495       3.4 %     -9.8 %
    Interest on borrowings     684       2,024       1,634       1,561       1,896       -66.2 %     -63.9 %
    Interest on subordinated debentures     1,586       1,582       1,624       1,652       1,649       0.3 %     -3.8 %
    Total interest expense     44,194       44,165       46,664       50,366       50,040       0.1 %     -11.7 %
    Net interest income   $ 57,139     $ 55,092     $ 53,449     $ 50,051     $ 48,620       3.7 %     17.5 %
                                               
    (1) Includes loans held for sale.  
        For the Three Months Ended (in thousands)     Percentage Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
    Average Earning Assets and Interest-bearing Liabilities   2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Loans receivable (1)   $ 6,257,741     $ 6,189,531     $ 6,103,264     $ 6,112,324     $ 6,089,440       1.1 %     2.8 %
    Securities     993,975       1,001,499       998,313       986,041       979,671       -0.8 %     1.5 %
    FHLB stock     16,385       16,385       16,385       16,385       16,385       0.0 %     0.0 %
    Interest-bearing deposits in other banks     200,266       176,028       204,408       183,027       180,177       13.8 %     11.1 %
    Average interest-earning assets   $ 7,468,367     $ 7,383,443     $ 7,322,370     $ 7,297,777     $ 7,265,673       1.2 %     2.8 %
                                               
    Demand: interest-bearing   $ 81,308     $ 79,369     $ 79,784     $ 83,647     $ 85,443       2.4 %     -4.8 %
    Money market and savings     2,109,221       2,037,224       1,934,540       1,885,799       1,845,870       3.5 %     14.3 %
    Time deposits     2,434,659       2,345,346       2,346,363       2,427,737       2,453,154       3.8 %     -0.8 %
    Average interest-bearing deposits     4,625,188       4,461,939       4,360,687       4,397,183       4,384,467       3.7 %     5.5 %
    Borrowings     60,134       179,444       141,604       143,479       169,525       -66.5 %     -64.5 %
    Subordinated debentures     130,880       130,718       130,567       130,403       130,239       0.1 %     0.5 %
    Average interest-bearing liabilities   $ 4,816,202     $ 4,772,101     $ 4,632,858     $ 4,671,065     $ 4,684,231       0.9 %     2.8 %
                                               
    Average Noninterest Bearing Deposits                                          
    Demand deposits – noninterest bearing   $ 1,934,985     $ 1,895,953     $ 1,967,789     $ 1,908,833     $ 1,883,765       2.1 %     2.7 %
                                               
    (1) Includes loans held for sale.  
        For the Three Months Ended     Yield/Rate Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
    Average Yields and Rates   2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Loans receivable (1)     5.93 %     5.95 %     5.97 %     6.00 %     5.99 %     -0.02       -0.06  
    Securities (2)     2.55 %     2.49 %     2.38 %     2.27 %     2.17 %     0.06       0.38  
    FHLB stock     8.65 %     8.92 %     8.75 %     8.65 %     8.77 %     -0.27       -0.12  
    Interest-bearing deposits in other banks     4.26 %     4.24 %     4.56 %     5.12 %     5.16 %     0.02       -0.90  
    Interest-earning assets     5.44 %     5.45 %     5.45 %     5.48 %     5.46 %     -0.01       -0.02  
                                               
    Interest-bearing deposits     3.64 %     3.69 %     3.96 %     4.27 %     4.27 %     -0.05       -0.63  
    Borrowings     4.58 %     4.57 %     4.59 %     4.33 %     4.50 %     0.01       0.08  
    Subordinated debentures     4.84 %     4.84 %     4.97 %     5.07 %     5.07 %     0.00       -0.23  
    Interest-bearing liabilities     3.68 %     3.75 %     4.01 %     4.29 %     4.30 %     -0.07       -0.62  
                                               
    Net interest margin (taxable equivalent basis)     3.07 %     3.02 %     2.91 %     2.74 %     2.69 %     0.05       0.38  
                                               
    Cost of deposits     2.56 %     2.59 %     2.73 %     2.97 %     2.98 %     -0.03       -0.42  
                                               
    (1) Includes loans held for sale.  
    (2) Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.  

    Credit loss expense for the second quarter was $7.6 million, compared with $2.7 million for the first quarter of 2025. The increase in credit loss expense reflected the increase in net charge-offs as well as an increase in quantitative and qualitative estimated loss rates. Net charge-offs included an $8.6 million loan charge-off on the syndicated commercial real estate office loan designated as nonaccrual, with an associated specific allowance of $6.2 million, in the first quarter of 2025. Second quarter credit loss expense included a $7.5 million credit loss expense for loan losses and a $0.1 million credit loss expense for off-balance sheet items. First quarter credit loss expense included a $2.4 million credit loss expense for loan losses and a $0.3 million credit loss expense for off-balance sheet items.

    Noninterest income for the second quarter increased $0.4 million, or 4.5%, to $8.1 million from $7.7 million for the first quarter of 2025. The increase was primarily due to a $0.2 million increase on gains from the sale of SBA loans and an increase in bank-owned life insurance income of $0.4 million from a death benefit claim, partially offset by the absence of gain on sale of mortgage loans. Gain on sales of SBA loans were $2.2 million for the second quarter of 2025, compared with $2.0 million for the first quarter of 2025. The volume of SBA loans sold for the second quarter increased to $35.4 million from $32.2 million for the first quarter of 2025, while trade premiums were 7.61% for the second quarter of 2025 compared with 7.82% for the first quarter. There were no mortgage loans sales during the second quarter, compared with $10.0 million of mortgage loans sold at a 2.50% premium for the first quarter. Gains on mortgage loans sold were $0.2 million for the first quarter. Subsequent to the end of the second quarter, $41.9 million of mortgage loans were sold at a 2.38% premium resulting in a gain of $0.7 million.

        For the Three Months Ended (in thousands)     Percentage Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
    Noninterest Income   2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Service charges on deposit accounts   $ 2,169     $ 2,217     $ 2,192     $ 2,311     $ 2,429       -2.2 %     -10.7 %
    Trade finance and other service charges and fees     1,461       1,396       1,364       1,254       1,277       4.7 %     14.4 %
    Servicing income     754       732       668       817       796       3.0 %     -5.3 %
    Bank-owned life insurance income     708       309       316       320       638       129.1 %     11.0 %
    All other operating income     819       897       1,037       1,008       908       -8.7 %     -9.8 %
    Service charges, fees & other     5,911       5,551       5,577       5,710       6,048       6.5 %     -2.3 %
                                               
    Gain on sale of SBA loans     2,160       2,000       1,443       1,544       1,644       8.0 %     31.4 %
    Gain on sale of mortgage loans     –       175       337       324       365       -100.0 %     -100.0 %
    Gain on sale of bank premises     –       –       –       860       –       0.0 %     0.0 %
    Total noninterest income   $ 8,071     $ 7,726     $ 7,357     $ 8,438     $ 8,057       4.5 %     0.2 %

    Noninterest expense for the second quarter increased $1.3 million to $36.3 million from $35.0 million for the first quarter of 2025. Second quarter noninterest expense was up 3.9% sequentially due to increases in salaries and benefits, professional fees, advertising and promotion and all other operating expenses, partially offset by a $0.6 million gain on sale of other real estate owned. Salaries and benefits increased $1.1 million due to annual merit adjustments and lower capitalized salaries related to loan production. Professional fees increased $0.3 million due to new project activities and fees for services. Advertising and promotion increased $0.2 million primarily due to a new branch opening. All other operating expenses increased $0.4 million due to loan and deposit operating expenses. The efficiency ratio for the second quarter was 55.7%, unchanged from the first quarter of 2025.

        For the Three Months Ended (in thousands)     Percentage Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
        2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Noninterest Expense                                          
    Salaries and employee benefits   $ 22,069     $ 20,972     $ 20,498     $ 20,851     $ 20,434       5.2 %     8.0 %
    Occupancy and equipment     4,344       4,450       4,503       4,499       4,348       -2.4 %     -0.1 %
    Data processing     3,727       3,787       3,800       3,839       3,686       -1.6 %     1.1 %
    Professional fees     1,725       1,468       1,821       1,492       1,749       17.5 %     -1.4 %
    Supplies and communication     515       517       551       538       570       -0.4 %     -9.6 %
    Advertising and promotion     798       585       821       631       669       36.4 %     19.3 %
    All other operating expenses     3,567       3,175       3,847       2,875       3,251       12.3 %     9.7 %
    Subtotal     36,745       34,954       35,841       34,725       34,707       5.1 %     5.9 %
                                               
    Branch consolidation expense     –       –       –       –       301       0.0 %     -100.0 %
    Other real estate owned expense (income)     (461 )     41       (1,588 )     77       6     N/M     N/M  
    Repossessed personal property expense (income)     63       (11 )     281       278       262       -672.7 %     -76.0 %
    Total noninterest expense   $ 36,347     $ 34,984     $ 34,534     $ 35,080     $ 35,276       3.9 %     3.0 %

    Hanmi recorded a provision for income taxes of $6.1 million for the second quarter of 2025, compared with $7.4 million for the first quarter of 2025, representing an effective tax rate of 28.8% and 29.6%, respectively.

    Financial Position
    Total assets at June 30, 2025 increased 1.7%, or $133.3 million, to $7.86 billion from $7.73 billion at March 31, 2025. The increase reflected a $51.0 million increase in cash, a $37.8 million increase in loans held for sale, a $27.6 million increase in loans, a $11.1 million increase in securities available for sale, and a $6.7 million increase in prepaid expenses and other assets.

    Loans receivable, before allowance for credit losses, were $6.31 billion at June 30, 2025, up from $6.28 billion at March 31, 2025.

    Loans held-for-sale were $49.6 million at June 30, 2025, up from $11.8 million at March 31, 2025. At the end of the second quarter, loans held-for-sale consisted of $41.9 million of residential mortgage loans and $7.7 million of the guaranteed portion of SBA 7(a) loans.

        As of (in thousands)     Percentage Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
        2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Loan Portfolio                                          
    Commercial real estate loans   $ 3,948,922     $ 3,975,651     $ 3,949,622     $ 3,932,088     $ 3,888,505       -0.7 %     1.6 %
    Residential/consumer loans     993,869       979,536       951,302       939,285       954,209       1.5 %     4.2 %
    Commercial and industrial loans     917,995       854,406       863,431       879,092       802,372       7.4 %     14.4 %
    Equipment finance     445,171       472,596       487,022       507,279       531,273       -5.8 %     -16.2 %
    Loans receivable     6,305,957       6,282,189       6,251,377       6,257,744       6,176,359       0.4 %     2.1 %
    Loans held for sale     49,611       11,831       8,579       54,336       10,467       319.3 %     374.0 %
    Total   $ 6,355,568     $ 6,294,020     $ 6,259,956     $ 6,312,080     $ 6,186,826       1.0 %     2.7 %
        As of  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,  
        2025     2025     2024     2024     2024  
    Composition of Loan Portfolio                              
    Commercial real estate loans     62.2 %     63.1 %     63.1 %     62.3 %     62.9 %
    Residential/consumer loans     15.6 %     15.6 %     15.2 %     14.9 %     15.4 %
    Commercial and industrial loans     14.4 %     13.6 %     13.8 %     13.9 %     13.0 %
    Equipment finance     7.0 %     7.5 %     7.8 %     8.0 %     8.5 %
    Loans receivable     99.2 %     99.8 %     99.9 %     99.1 %     99.8 %
    Loans held for sale     0.8 %     0.2 %     0.1 %     0.9 %     0.2 %
    Total     100.0 %     100.0 %     100.0 %     100.0 %     100.0 %

    New loan production was $329.6 million for the second quarter of 2025 with an average rate of 7.10%, while payoffs were $119.1 million during the quarter at an average rate of 6.47%.

    Commercial real estate loan production for the second quarter of 2025 was $112.0 million. Residential mortgage loan production was $83.8 million. Commercial and industrial loan production was $53.4 million, SBA loan production was $46.8 million, and equipment finance production was $33.6 million.

        For the Three Months Ended (in thousands)  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,  
        2025     2025     2024     2024     2024  
    New Loan Production                              
    Commercial real estate loans   $ 111,993     $ 146,606     $ 146,716     $ 110,246     $ 87,632  
    Residential/consumer loans     83,761       55,000       40,225       40,758       30,194  
    Commercial and industrial loans     53,444       42,344       60,159       105,086       59,007  
    SBA loans     46,829       55,242       49,740       51,616       54,486  
    Equipment finance     33,567       46,749       42,168       40,066       42,594  
    Subtotal     329,594       345,941       339,008       347,772       273,913  
                                   
                                   
    Payoffs     (119,139 )     (125,102 )     (137,933 )     (77,603 )     (148,400 )
    Amortization     (151,357 )     (90,743 )     (60,583 )     (151,674 )     (83,640 )
    Loan sales     (35,388 )     (42,193 )     (67,852 )     (43,868 )     (42,945 )
    Net line utilization     12,435       (53,901 )     (75,651 )     9,426       1,929  
    Charge-offs & OREO     (12,377 )     (3,190 )     (3,356 )     (2,668 )     (2,338 )
                                   
    Loans receivable-beginning balance     6,282,189       6,251,377       6,257,744       6,176,359       6,177,840  
    Loans receivable-ending balance   $ 6,305,957     $ 6,282,189     $ 6,251,377     $ 6,257,744     $ 6,176,359  

    Deposits were $6.73 billion at the end of the second quarter of 2025, up $109.6 million, or 1.7%, from $6.62 billion at the end of the prior quarter. Driving the change was a $42.7 million increase in time deposits, a $38.7 million increase in noninterest-bearing demand deposits and a $18.9 million increase in money market and savings deposits. Noninterest-bearing demand deposits represented 31.3% of total deposits at June 30, 2025 and the loan-to-deposit ratio was 93.7%.

        As of (in thousands)     Percentage Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
        2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Deposit Portfolio                                          
    Demand: noninterest-bearing   $ 2,105,369     $ 2,066,659     $ 2,096,634     $ 2,051,790     $ 1,959,963       1.9 %     7.4 %
    Demand: interest-bearing     90,172       80,790       80,323       79,287       82,981       11.6 %     8.7 %
    Money market and savings     2,092,847       2,073,943       1,933,535       1,898,834       1,834,797       0.9 %     14.1 %
    Time deposits     2,440,734       2,398,083       2,325,284       2,373,310       2,451,599       1.8 %     -0.4 %
    Total deposits   $ 6,729,122     $ 6,619,475     $ 6,435,776     $ 6,403,221     $ 6,329,340       1.7 %     6.3 %
        As of  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,  
        2025     2025     2024     2024     2024  
    Composition of Deposit Portfolio                              
    Demand: noninterest-bearing     31.3 %     31.2 %     32.6 %     32.0 %     31.0 %
    Demand: interest-bearing     1.3 %     1.2 %     1.2 %     1.2 %     1.3 %
    Money market and savings     31.1 %     31.3 %     30.0 %     29.7 %     29.0 %
    Time deposits     36.3 %     36.3 %     36.2 %     37.1 %     38.7 %
    Total deposits     100.0 %     100.0 %     100.1 %     100.0 %     100.0 %

    Stockholders’ equity at June 30, 2025 was $762.8 million, up $11.3 million from $751.5 million at March 31, 2025. The increase included net income, net of dividends paid, of $7.0 million for the second quarter. In addition, the increase in stockholders’ equity included a $5.5 million decrease in unrealized after-tax losses on securities available for sale, due to changes in interest rates during the second quarter of 2025. Hanmi also repurchased 70,000 shares of common stock at a cost of $1.6 million, for an average share price of $23.26, during the quarter. At June 30, 2025, 1,110,500 shares remain under Hanmi’s share repurchase program. Tangible common stockholders’ equity was $751.8 million, or 9.58% of tangible assets at June 30, 2025 compared with $740.5 million, or 9.59% of tangible assets at the end of the prior quarter. Please refer to the Non-GAAP Financial Measures section below for more information.

    Hanmi and the Bank exceeded minimum regulatory capital requirements, and the Bank continues to exceed the minimum for the “well capitalized” category. At June 30, 2025, Hanmi’s preliminary common equity tier 1 capital ratio was 12.12% and its total risk-based capital ratio was 15.20%, compared with 12.12% and 15.28%, respectively, at the end of the prior quarter.

        As of     Ratio Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
        2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Regulatory Capital ratios (1)                                          
    Hanmi Financial                                          
    Total risk-based capital     15.20 %     15.28 %     15.24 %     15.03 %     15.24 %     -0.08       -0.04  
    Tier 1 risk-based capital     12.46 %     12.46 %     12.46 %     12.29 %     12.46 %     0.00       0.00  
    Common equity tier 1 capital     12.12 %     12.12 %     12.11 %     11.95 %     12.11 %     0.00       0.01  
    Tier 1 leverage capital ratio     10.63 %     10.67 %     10.63 %     10.56 %     10.51 %     -0.04       0.12  
    Hanmi Bank                                          
    Total risk-based capital     14.39 %     14.47 %     14.43 %     14.27 %     14.51 %     -0.08       -0.12  
    Tier 1 risk-based capital     13.32 %     13.34 %     13.36 %     13.23 %     13.47 %     -0.02       -0.15  
    Common equity tier 1 capital     13.32 %     13.34 %     13.36 %     13.23 %     13.47 %     -0.02       -0.15  
    Tier 1 leverage capital ratio     11.43 %     11.49 %     11.47 %     11.43 %     11.41 %     -0.06       0.02  
                                               
    (1) Preliminary ratios for June 30, 2025  


    Asset Quality
    Loans 30 to 89 days past due and still accruing were 0.17% of loans at the end of the second quarter of 2025, compared with 0.28% at the end of the prior quarter.

    Criticized loans totaled $46.6 million at June 30, 2025, down from $164.9 million at the end of the prior quarter. The $118.3 million decrease resulted from a $105.7 million decrease in special mention loans, and a $12.6 million decrease in classified loans. The $105.7 million decrease in special mention loans included loan upgrades of $85.3 million of two commercial real estate loans, paydowns of $20.0 million and amortization of $0.7 million, offset by downgrades of $0.3 million. The $12.6 million decrease in classified loans resulted from $8.7 million of loan charge-offs (primarily due to the previously mentioned $8.6 million commercial real estate loan charge-off), $2.9 million of equipment financing charge-offs, $1.6 million of amortization/paydowns, $4.0 million of loan upgrades and, $0.2 million of payoffs, offset by $4.8 million in additions. Additions included newly classified equipment financing agreements of $2.4 million and loan downgrades of $2.4 million.

    Nonperforming loans were $26.0 million at June 30, 2025, down from $35.6 million at the end of the prior quarter. The $9.6 million decrease primarily reflected charge-offs of $11.6 million, $1.3 million in paydowns, loan upgrades of $1.0 million, and pay-offs of $0.2 million. Additions included $2.1 million of loans and $2.5 million of equipment financing agreements.

    Nonperforming assets were $26.0 million at June 30, 2025, down from $35.7 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets were 0.33% at June 30, 2025, and 0.46% at the end of the prior quarter.

    Gross charge-offs for the second quarter of 2025 were $12.4 million, compared with $3.2 million for the preceding quarter. The increase in gross charge-offs was primarily due to a $8.6 million charge-off on a commercial real estate loan designated as nonaccrual during the first quarter of 2025. Charge-offs during the second quarter also included $2.9 million on equipment financing agreements. Recoveries of previously charged-off loans were $1.0 million in the second quarter of 2025, which included $0.6 million of recoveries on equipment financing agreements. As a result, there were $11.4 million of net charge-offs for the second quarter of 2025, compared to $1.9 million for the prior quarter.

    The allowance for credit losses was $66.8 million at June 30, 2025, compared with $70.6 million at March 31, 2025. Collectively evaluated allowances increased $3.8 million and specific allowances for loans decreased $7.6 million. The decrease in specific allowances was a result of the previously mentioned $8.6 million charge-off. The ratio of the allowance for credit losses to loans was 1.06% at June 30, 2025 and 1.12% at the end of the prior quarter.

        As of or for the Three Months Ended (in thousands)     Amount Change  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,     Q2-25     Q2-25  
        2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Asset Quality Data and Ratios                                          
                                               
    Delinquent loans:                                          
    Loans, 30 to 89 days past due and still accruing   $ 10,953     $ 17,312     $ 18,454     $ 15,027     $ 13,844     $ (6,359 )   $ (2,891 )
    Delinquent loans to total loans     0.17 %     0.28 %     0.30 %     0.24 %     0.22 %     (0.11 )     (0.05 )
                                               
    Criticized loans:                                          
    Special mention   $ 12,701     $ 118,380     $ 139,612     $ 131,575     $ 36,921     $ (105,679 )   $ (24,220 )
    Classified     33,857       46,519       25,683       28,377       33,945       (12,662 )     (88 )
    Total criticized loans (1)   $ 46,558     $ 164,899     $ 165,295     $ 159,952     $ 70,866     $ (118,341 )   $ (24,308 )
                                               
    Criticized loans to total loans     0.74 %     2.62 %     2.64 %     2.56 %     1.15 %     (1.88 )     (0.41 )
                                               
    Nonperforming assets:                                          
    Nonaccrual loans   $ 25,968     $ 35,459     $ 14,272     $ 15,248     $ 19,245     $ (9,491 )   $ 6,723  
    Loans 90 days or more past due and still accruing     –       112       –       242       –       (112 )     –  
    Nonperforming loans (2)     25,968       35,571       14,272       15,490       19,245       (9,603 )     6,723  
    Other real estate owned, net     –       117       117       772       772       (117 )     (772 )
    Nonperforming assets (3)   $ 25,968     $ 35,688     $ 14,389     $ 16,262     $ 20,017     $ (9,720 )   $ 5,951  
                                               
    Nonperforming assets to assets (2)     0.33 %     0.46 %     0.19 %     0.21 %     0.26 %     -0.13       0.07  
    Nonperforming loans to total loans     0.41 %     0.57 %     0.23 %     0.25 %     0.31 %     -0.16       0.10  
                                               
    (1) Includes nonaccrual loans of $24.1 million, $34.4 million, $13.4 million, $13.6 million, and $18.4 million as of Q2-25, Q1-25, Q4-24, Q3-24, and Q2-24, respectively.  
    (2) Excludes a $27.2 million nonperforming loan held-for-sale as of September 30, 2024.  
    (3) Excludes repossessed personal property of $0.6 million, $0.7 million, $0.6 million, $1.2 million, and $1.2 million as of Q2-25, Q1-25, Q4-24, Q3-24, and Q2-24, respectively.  
        As of or for the Three Months Ended (in thousands)  
        Jun 30,     Mar 31,     Dec 31,     Sep 30,     Jun 30,  
        2025     2025     2024     2024     2024  
    Allowance for credit losses related to loans:                              
    Balance at beginning of period   $ 70,597     $ 70,147     $ 69,163     $ 67,729     $ 68,270  
    Credit loss expense (recovery) on loans     7,524       2,396       855       2,312       1,248  
    Net loan (charge-offs) recoveries     (11,365 )     (1,946 )     129       (878 )     (1,789 )
    Balance at end of period   $ 66,756     $ 70,597     $ 70,147     $ 69,163     $ 67,729  
                                   
    Net loan charge-offs (recoveries) to average loans (1)     0.73 %     0.13 %     -0.01 %     0.06 %     0.12 %
    Allowance for credit losses to loans     1.06 %     1.12 %     1.12 %     1.11 %     1.10 %
                                   
    Allowance for credit losses related to off-balance sheet items:                              
    Balance at beginning of period   $ 2,399     $ 2,074     $ 1,984     $ 2,010     $ 2,297  
    Credit loss expense (recovery) on off-balance sheet items     107       325       90       (26 )     (287 )
    Balance at end of period   $ 2,506     $ 2,399     $ 2,074     $ 1,984     $ 2,010  
                                   
    Unused commitments to extend credit   $ 915,847     $ 896,282     $ 782,587     $ 739,975     $ 795,391  
                                   
    (1) Annualized                              


    Corporate Developments
    On April 24, 2025, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2025 second quarter of $0.27 per share. Hanmi paid the dividend on May 21, 2025, to stockholders of record as of the close of business on May 5, 2025.

    Earnings Conference Call
    Hanmi Bank will host its second quarter 2025 earnings conference call today, July 22, 2025, at 2:00 p.m. PST (5:00 p.m. EST) to discuss these results. This call will also be webcast. To access the call, please dial 1-877-407-9039 before 2:00 p.m. PST, using access code Hanmi Bank. To listen to the call online, either live or archived, please visit Hanmi’s Investor Relations website at https://investors.hanmi.com/ where it will also be available for replay approximately one hour following the call.

    About Hanmi Financial Corporation
    Headquartered in Los Angeles, California, Hanmi Financial Corporation owns Hanmi Bank, which serves multi-ethnic communities through its network of 32 full-service branches and eight loan production offices in California, Texas, Illinois, Virginia, New Jersey, New York, Colorado, Washington and Georgia. Hanmi Bank specializes in real estate, commercial, SBA and trade finance lending to small and middle market businesses. Additional information is available at www.hanmi.com.

    Forward-Looking Statements
    This press release contains forward-looking statements, which are included in accordance with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are “forward–looking statements” for purposes of federal and state securities laws, including, but not limited to, statements about our anticipated future operating and financial performance, financial position and liquidity, business strategies, regulatory and competitive outlook, investment and expenditure plans, capital and financing needs and availability, plans and objectives of management for future operations, developments regarding our capital and strategic plans, and other similar forecasts and statements of expectation and statements of assumption underlying any of the foregoing. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or “continue,” or the negative of such terms and other comparable terminology. Although we believe that our forward-looking statements to be reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

    Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ from those expressed or implied by the forward-looking statements. These factors include the following:

    • a failure to maintain adequate levels of capital and liquidity to support our operations;
    • general economic and business conditions internationally, nationally and in those areas in which we operate, including any potential recessionary conditions;
    • volatility and deterioration in the credit and equity markets;
    • changes in investor sentiment or consumer spending, borrowing and savings habits;
    • availability of capital from private and government sources;
    • demographic changes;
    • competition for loans and deposits and failure to attract or retain loans and deposits;
    • inflation and fluctuations in interest rates that reduce our margins and yields, the fair value of financial instruments, the level of loan originations or prepayments on loans we have made and make, the level of loan sales and the cost we pay to retain and attract deposits and secure other types of funding;
    • our ability to enter new markets successfully and capitalize on growth opportunities;
    • the current or anticipated impact of military conflict, terrorism or other geopolitical events;
    • the effect of potential future supervisory action against us or Hanmi Bank and our ability to address any issues raised in our regulatory exams;
    • risks of natural disasters;
    • legal proceedings and litigation brought against us;
    • a failure in or breach of our operational or security systems or infrastructure, including cyberattacks;
    • the failure to maintain current technologies;
    • risks associated with Small Business Administration loans;
    • failure to attract or retain key employees;
    • our ability to access cost-effective funding;
    • the imposition of tariffs or other domestic or international governmental policies and retaliatory responses;
    • changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio;
    • fluctuations in real estate values;
    • changes in accounting policies and practices;
    • changes in governmental regulation, including, but not limited to, any increase in FDIC insurance premiums and changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;
    • the ability of Hanmi Bank to make distributions to Hanmi Financial Corporation, which is restricted by certain factors, including Hanmi Bank’s retained earnings, net income, prior distributions made, and certain other financial tests;
    • strategic transactions we may enter into;
    • the adequacy of and changes in the economic assumptions and methodology for computing our allowance for credit losses;
    • our credit quality and the effect of credit quality on our credit losses expense and allowance for credit losses;
    • changes in the financial performance and/or condition of our borrowers and the ability of our borrowers to perform under the terms of their loans and other terms of credit agreements;
    • our ability to control expenses; and
    • cyber security and fraud risks against our information technology and those of our third-party providers and vendors.

    In addition, we set forth certain risks in our reports filed with the U.S. Securities and Exchange Commission, including, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, our Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K that we will file hereafter, which could cause actual results to differ from those projected. We undertake no obligation to update such forward-looking statements except as required by law.

    Investor Contacts:
    Romolo (Ron) Santarosa
    Senior Executive Vice President & Chief Financial Officer
    213-427-5636

    Lisa Fortuna
    Investor Relations
    Financial Profiles, Inc.
    lfortuna@finprofiles.com
    310-622-8251

    Hanmi Financial Corporation and Subsidiaries
    Consolidated Balance Sheets (Unaudited)
    (Dollars in thousands)

        June 30,     March 31,     Percentage     June 30,     Percentage  
        2025     2025     Change     2024     Change  
    Assets                              
    Cash and due from banks   $ 380,050     $ 329,003       15.5 %   $ 313,079       21.4 %
    Securities available for sale, at fair value     918,094       907,011       1.2 %     877,638       4.6 %
    Loans held for sale, at the lower of cost or fair value     49,611       11,831       319.3 %     10,467       374.0 %
    Loans receivable, net of allowance for credit losses     6,239,201       6,211,592       0.4 %     6,108,630       2.1 %
    Accrued interest receivable     23,749       23,536       0.9 %     23,958       -0.9 %
    Premises and equipment, net     20,607       20,866       -1.2 %     21,955       -6.1 %
    Customers’ liability on acceptances     214       552       -61.2 %     551       -61.2 %
    Servicing assets     6,420       6,422       0.0 %     6,836       -6.1 %
    Goodwill and other intangible assets, net     11,031       11,031       0.0 %     11,048       -0.2 %
    Federal Home Loan Bank (“FHLB”) stock, at cost     16,385       16,385       0.0 %     16,385       0.0 %
    Bank-owned life insurance     56,985       57,476       -0.9 %     56,534       0.8 %
    Prepaid expenses and other assets     140,016       133,330       5.0 %     139,266       0.5 %
    Total assets   $ 7,862,363     $ 7,729,035       1.7 %   $ 7,586,347       3.6 %
                                   
    Liabilities and Stockholders’ Equity                              
    Liabilities:                              
    Deposits:                              
    Noninterest-bearing   $ 2,105,369     $ 2,066,659       1.9 %   $ 1,959,963       7.4 %
    Interest-bearing     4,623,753       4,552,816       1.6 %     4,369,377       5.8 %
    Total deposits     6,729,122       6,619,475       1.7 %     6,329,340       6.3 %
    Accrued interest payable     30,567       29,646       3.1 %     47,699       -35.9 %
    Bank’s liability on acceptances     214       552       -61.2 %     551       -61.2 %
    Borrowings     127,500       117,500       8.5 %     292,500       -56.4 %
    Subordinated debentures     130,960       130,799       0.1 %     130,318       0.5 %
    Accrued expenses and other liabilities     81,166       79,578       2.0 %     78,880       2.9 %
    Total liabilities     7,099,529       6,977,550       1.7 %     6,879,288       3.2 %
                                   
    Stockholders’ equity:                              
    Common stock     34       34       0.0 %     34       0.0 %
    Additional paid-in capital     592,825       591,942       0.1 %     588,647       0.7 %
    Accumulated other comprehensive (loss)     (54,511 )     (60,002 )     9.2 %     (78,000 )     30.1 %
    Retained earnings     367,251       360,289       1.9 %     333,392       10.2 %
    Less treasury stock     (142,765 )     (140,778 )     -1.4 %     (137,014 )     -4.2 %
    Total stockholders’ equity     762,834       751,485       1.5 %     707,059       7.9 %
    Total liabilities and stockholders’ equity   $ 7,862,363     $ 7,729,035       1.7 %   $ 7,586,347       3.6 %

    Hanmi Financial Corporation and Subsidiaries
    Consolidated Statements of Income (Unaudited)
    (Dollars in thousands, except share and per share data)

        Three Months Ended  
        June 30,     March 31,     Percentage     June 30,     Percentage  
        2025     2025     Change     2024     Change  
    Interest and dividend income:                              
    Interest and fees on loans receivable   $ 92,589     $ 90,887       1.9 %   $ 90,752       2.0 %
    Interest on securities     6,261       6,169       1.5 %     5,238       19.5 %
    Dividends on FHLB stock     354       360       -1.7 %     357       -0.8 %
    Interest on deposits in other banks     2,129       1,841       15.6 %     2,313       -8.0 %
    Total interest and dividend income     101,333       99,257       2.1 %     98,660       2.7 %
    Interest expense:                              
    Interest on deposits     41,924       40,559       3.4 %     46,495       -9.8 %
    Interest on borrowings     684       2,024       -66.2 %     1,896       -63.9 %
    Interest on subordinated debentures     1,586       1,582       0.3 %     1,649       -3.8 %
    Total interest expense     44,194       44,165       0.1 %     50,040       -11.7 %
    Net interest income before credit loss expense     57,139       55,092       3.7 %     48,620       17.5 %
    Credit loss expense     7,631       2,721       180.4 %     961       694.1 %
    Net interest income after credit loss expense     49,508       52,371       -5.5 %     47,659       3.9 %
    Noninterest income:                              
    Service charges on deposit accounts     2,169       2,217       -2.2 %     2,429       -10.7 %
    Trade finance and other service charges and fees     1,461       1,396       4.7 %     1,277       14.4 %
    Gain on sale of Small Business Administration (“SBA”) loans     2,160       2,000       8.0 %     1,644       31.4 %
    Other operating income     2,281       2,113       8.0 %     2,707       -15.7 %
    Total noninterest income     8,071       7,726       4.5 %     8,057       0.2 %
    Noninterest expense:                              
    Salaries and employee benefits     22,069       20,972       5.2 %     20,434       8.0 %
    Occupancy and equipment     4,344       4,450       -2.4 %     4,607       -5.7 %
    Data processing     3,727       3,787       -1.6 %     3,686       1.1 %
    Professional fees     1,725       1,468       17.5 %     1,749       -1.4 %
    Supplies and communications     515       517       -0.4 %     570       -9.6 %
    Advertising and promotion     798       585       36.4 %     669       19.3 %
    Other operating expenses     3,169       3,205       -1.1 %     3,561       -11.0 %
    Total noninterest expense     36,347       34,984       3.9 %     35,276       3.0 %
    Income before tax     21,232       25,113       -15.5 %     20,440       3.9 %
    Income tax expense     6,115       7,441       -17.8 %     5,989       2.1 %
    Net income   $ 15,117     $ 17,672       -14.5 %   $ 14,451       4.6 %
                                   
    Basic earnings per share:   $ 0.50     $ 0.59           $ 0.48        
    Diluted earnings per share:   $ 0.50     $ 0.58           $ 0.48        
                                   
    Weighted-average shares outstanding:                              
    Basic     29,948,836       29,937,660             30,055,913        
    Diluted     30,054,456       30,058,248             30,133,646        
    Common shares outstanding     30,176,568       30,233,514             30,272,110        

    Hanmi Financial Corporation and Subsidiaries
    Consolidated Statements of Income (Unaudited)
    (Dollars in thousands, except share and per share data)

        Six Months Ended  
        June 30,     June 30,     Percentage  
        2025     2024     Change  
    Interest and dividend income:                  
    Interest and fees on loans receivable   $ 183,476     $ 182,427       0.6 %
    Interest on securities     12,430       10,193       21.9 %
    Dividends on FHLB stock     714       719       -0.7 %
    Interest on deposits in other banks     3,969       4,914       -19.2 %
    Total interest and dividend income     200,589       198,253       1.2 %
    Interest expense:                  
    Interest on deposits     82,483       92,133       -10.5 %
    Interest on borrowings     2,708       3,551       -23.7 %
    Interest on subordinated debentures     3,167       3,295       -3.9 %
    Total interest expense     88,358       98,979       -10.7 %
    Net interest income before credit loss expense     112,231       99,274       13.1 %
    Credit loss expense     10,352       1,188       771.4 %
    Net interest income after credit loss expense     101,879       98,086       3.9 %
    Noninterest income:                  
    Service charges on deposit accounts     4,387       4,878       -10.1 %
    Trade finance and other service charges and fees     2,858       2,691       6.2 %
    Gain on sale of Small Business Administration (“SBA”) loans     4,161       3,126       33.1 %
    Other operating income     4,390       5,095       -13.8 %
    Total noninterest income     15,796       15,790       0.0 %
    Noninterest expense:                  
    Salaries and employee benefits     43,041       42,019       2.4 %
    Occupancy and equipment     8,794       9,144       -3.8 %
    Data processing     7,514       7,237       3.8 %
    Professional fees     3,194       3,642       -12.3 %
    Supplies and communications     1,031       1,172       -12.0 %
    Advertising and promotion     1,382       1,576       -12.3 %
    Other operating expenses     6,374       6,930       -8.0 %
    Total noninterest expense     71,330       71,720       -0.5 %
    Income before tax     46,345       42,156       9.9 %
    Income tax expense     13,556       12,541       8.1 %
    Net income   $ 32,789     $ 29,615       10.7 %
                       
    Basic earnings per share:   $ 1.09     $ 0.98        
    Diluted earnings per share:   $ 1.08     $ 0.97        
                       
    Weighted-average shares outstanding:                  
    Basic     29,943,279       30,089,341        
    Diluted     30,048,704       30,166,181        
    Common shares outstanding     30,176,568       30,272,110        

    Hanmi Financial Corporation and Subsidiaries
    Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
    (Dollars in thousands)

        Three Months Ended  
        June 30, 2025     March 31, 2025     June 30, 2024  
              Interest     Average           Interest     Average           Interest     Average  
        Average     Income /     Yield /     Average     Income /     Yield /     Average     Income /     Yield /  
        Balance     Expense     Rate     Balance     Expense     Rate     Balance     Expense     Rate  
    Assets                                                      
    Interest-earning assets:                                                      
    Loans receivable (1)   $ 6,257,741     $ 92,589       5.93 %   $ 6,189,531     $ 90,887       5.95 %   $ 6,089,440     $ 90,752       5.99 %
    Securities (2)     993,975       6,261       2.55 %     1,001,499       6,169       2.49 %     979,671       5,238       2.17 %
    FHLB stock     16,385       354       8.65 %     16,385       360       8.92 %     16,385       357       8.77 %
    Interest-bearing deposits in other banks     200,266       2,129       4.26 %     176,028       1,841       4.24 %     180,177       2,313       5.16 %
    Total interest-earning assets     7,468,367       101,333       5.44 %     7,383,443       99,257       5.45 %     7,265,673       98,660       5.46 %
                                                           
    Noninterest-earning assets:                                                      
    Cash and due from banks     53,977                   53,670                   55,442              
    Allowance for credit losses     (70,222 )                 (69,648 )                 (67,908 )            
    Other assets     250,241                   249,148                   252,410              
                                                           
    Total assets   $ 7,702,363                 $ 7,616,613                 $ 7,505,617              
                                                           
    Liabilities and Stockholders’ Equity                                                      
    Interest-bearing liabilities:                                                      
    Deposits:                                                      
    Demand: interest-bearing   $ 81,308     $ 29       0.15 %   $ 79,369     $ 27       0.14 %   $ 85,443     $ 32       0.15 %
    Money market and savings     2,109,221       17,342       3.30 %     2,037,224       16,437       3.27 %     1,845,870       17,324       3.77 %
    Time deposits     2,434,659       24,553       4.05 %     2,345,346       24,095       4.17 %     2,453,154       29,139       4.78 %
    Total interest-bearing deposits     4,625,188       41,924       3.64 %     4,461,939       40,559       3.69 %     4,384,467       46,495       4.27 %
    Borrowings     60,134       684       4.58 %     179,444       2,024       4.57 %     169,525       1,896       4.50 %
    Subordinated debentures     130,880       1,586       4.84 %     130,718       1,582       4.84 %     130,239       1,649       5.07 %
    Total interest-bearing liabilities     4,816,202       44,194       3.68 %     4,772,101       44,165       3.75 %     4,684,231       50,040       4.30 %
                                                           
    Noninterest-bearing liabilities and equity:                                                      
    Demand deposits: noninterest-bearing     1,934,985                   1,895,953                   1,883,765              
    Other liabilities     140,053                   144,654                   162,543              
    Stockholders’ equity     811,123                   803,905                   775,078              
                                                           
    Total liabilities and stockholders’ equity   $ 7,702,363                 $ 7,616,613                 $ 7,505,617              
                                                           
    Net interest income         $ 57,139                 $ 55,092                 $ 48,620        
                                                           
    Cost of deposits                 2.56 %                 2.59 %                 2.98 %
    Net interest spread (taxable equivalent basis)                 1.76 %                 1.70 %                 1.16 %
    Net interest margin (taxable equivalent basis)                 3.07 %                 3.02 %                 2.69 %
                                                           
    (1) Includes average loans held for sale  
    (2) Income calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.  

    Hanmi Financial Corporation and Subsidiaries
    Average Balance, Average Yield Earned, and Average Rate Paid (Unaudited)
    (Dollars in thousands)

        Six Months Ended  
        June 30, 2025     June 30, 2024  
              Interest     Average           Interest     Average  
        Average     Income /     Yield /     Average     Income /     Yield /  
        Balance     Expense     Rate     Balance     Expense     Rate  
    Assets                                    
    Interest-earning assets:                                    
    Loans receivable (1)   $ 6,223,825     $ 183,476       5.94 %   $ 6,113,664     $ 182,427       6.00 %
    Securities (2)     997,716       12,430       2.52 %     974,596       10,193       2.12 %
    FHLB stock     16,385       714       8.79 %     16,385       719       8.82 %
    Interest-bearing deposits in other banks     188,214       3,969       4.25 %     190,950       4,914       5.18 %
    Total interest-earning assets     7,426,140       200,589       5.44 %     7,295,595       198,253       5.46 %
                                         
    Noninterest-earning assets:                                    
    Cash and due from banks     53,824                   56,912              
    Allowance for credit losses     (69,936 )                 (68,507 )            
    Other assets     249,697                   248,555              
                                         
    Total assets   $ 7,659,725                 $ 7,532,555              
                                         
    Liabilities and Stockholders’ Equity                                    
    Interest-bearing liabilities:                                    
    Deposits:                                    
    Demand: interest-bearing   $ 80,344     $ 56       0.14 %   $ 85,922     $ 61       0.14 %
    Money market and savings     2,073,421       33,779       3.29 %     1,830,478       33,877       3.72 %
    Time deposits     2,390,249       48,648       4.10 %     2,480,492       58,195       4.72 %
    Total interest-bearing deposits     4,544,014       82,483       3.66 %     4,396,892       92,133       4.21 %
    Borrowings     119,460       2,708       4.57 %     165,972       3,551       4.30 %
    Subordinated debentures     130,799       3,167       4.84 %     130,163       3,295       5.06 %
    Total interest-bearing liabilities     4,794,273       88,358       3.72 %     4,693,027       98,979       4.24 %
                                         
    Noninterest-bearing liabilities and equity:                                    
    Demand deposits: noninterest-bearing     1,915,577                   1,902,477              
    Other liabilities     142,341                   163,533              
    Stockholders’ equity     807,534                   773,518              
                                         
    Total liabilities and stockholders’ equity   $ 7,659,725                 $ 7,532,555              
                                         
    Net interest income         $ 112,231                 $ 99,274        
                                         
    Cost of deposits                 2.58 %                 2.94 %
    Net interest spread (taxable equivalent basis)                 1.73 %                 1.22 %
    Net interest margin (taxable equivalent basis)                 3.05 %                 2.74 %
                                         
    (1) Includes average loans held for sale  
    (2) Amounts calculated on a fully taxable equivalent basis using the federal tax rate in effect for the periods presented.  


    Non-GAAP Financial Measures

    These disclosures should not be viewed as a substitute for results determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

    Tangible Common Equity to Tangible Assets Ratio

    Tangible common equity to tangible assets ratio is supplemental financial information determined by a method other than in accordance with U.S. generally accepted accounting principles (“GAAP”). This non-GAAP measure is used by management in the analysis of Hanmi’s capital strength. Tangible common equity is calculated by subtracting goodwill and other intangible assets from stockholders’ equity. Banking and financial institution regulators also exclude goodwill and other intangible assets from stockholders’ equity when assessing the capital adequacy of a financial institution. Management believes the presentation of this financial measure excluding the impact of these items provides useful supplemental information that is essential to a proper understanding of the capital strength of Hanmi.

    The following table reconciles this non-GAAP performance measure to the GAAP performance measure for the periods indicated:

    Tangible Common Equity to Tangible Assets Ratio (Unaudited)
    (In thousands, except share, per share data and ratios)

        June 30,     March 31,     December 31,     September 30,     June 30,  
    Hanmi Financial Corporation   2025     2025     2024     2024     2024  
    Assets   $ 7,862,363     $ 7,729,035     $ 7,677,925     $ 7,712,299     $ 7,586,347  
    Less goodwill and other intangible assets     (11,031 )     (11,031 )     (11,031 )     (11,031 )     (11,048 )
    Tangible assets   $ 7,851,332     $ 7,718,004     $ 7,666,894     $ 7,701,268     $ 7,575,299  
                                   
    Stockholders’ equity (1)   $ 762,834     $ 751,485     $ 732,174     $ 736,709     $ 707,059  
    Less goodwill and other intangible assets     (11,031 )     (11,031 )     (11,031 )     (11,031 )     (11,048 )
    Tangible stockholders’ equity (1)   $ 751,803     $ 740,454     $ 721,143     $ 725,678     $ 696,011  
                                   
    Stockholders’ equity to assets     9.70 %     9.72 %     9.54 %     9.55 %     9.32 %
    Tangible common equity to tangible assets (1)     9.58 %     9.59 %     9.41 %     9.42 %     9.19 %
                                   
    Common shares outstanding     30,176,568       30,233,514       30,195,999       30,196,755       30,272,110  
    Tangible common equity per common share   $ 24.91     $ 24.49     $ 23.88     $ 24.03     $ 22.99  
                                   
    (1) There were no preferred shares outstanding at the periods indicated.  


    Preprovision Net Revenue

    Preprovision net revenue is supplemental financial information determined by a method other than in accordance with U.S. GAAP. This non-GAAP measure is used by management to measure Hanmi’s core operational performance, excluding the impact of provisions for loan losses. By isolating preprovision net revenue, management can better understand the Company’s profitability and make more informed strategic decisions. Preprovision net revenue is calculated adding income tax expense and credit loss expense to net income. Management believes this financial measure highlights the Company’s net revenue activities and operational efficiency, excluding unpredictable credit loss expense.

    The following table details the Company’s preprovision net revenue, which are non-GAAP measures, for the periods indicated:

    Preprovision Net Revenue (Unaudited)
    (In thousands, except percentages)

                                      Percentage Change  
        June 30,     March 31,     December 31,     September 30,     June 30,     Q2-25     Q2-25  
    Hanmi Financial Corporation   2025     2025     2024     2024     2024     vs. Q1-25     vs. Q2-24  
    Net income   $ 15,117     $ 17,672     $ 17,695     $ 14,892     $ 14,451              
    Add back:                                          
    Credit loss expense     7,631       2,721       945       2,286       961              
    Income tax expense     6,115       7,441       7,632       6,231       5,989              
    Preprovision net revenue   $ 28,863     $ 27,834     $ 26,272     $ 23,409     $ 21,401       3.7 %     34.9 %

    The MIL Network –

  • MIL-OSI: CNB Financial Corporation Reports Second Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    CLEARFIELD, Pa., July 22, 2025 (GLOBE NEWSWIRE) —

    CNB Financial Corporation (“Corporation”) (NASDAQ: CCNE), the parent company of CNB Bank, today announced its earnings for the three and six months ended June 30, 2025.

    Key Financial Trends

    • Earnings – Net income available to common shareholders (“earnings”) was $12.9 million, or $0.61 per diluted share, and $10.4 million, or $0.50 per diluted share, for the three months ended June 30, 2025 and March 31, 2025, respectively.
      • Excluding after-tax merger costs, earnings were $13.2 million, or $0.63 per diluted share, for the three months ended June 30, 2025, reflecting an increase of $1.3 million, or 11.31%, and $0.06 per diluted share, or 10.53%, compared to earnings of $11.9 million, or $0.57 per diluted share, for the three months ended March 31, 2025.1
    • Loans – At June 30, 2025, loans totaled $4.7 billion, excluding the balances of syndicated loans, representing a quarterly increase of $113.7 million, or 2.50% (10.04% annualized), compared to March 31, 2025.
    • Deposits – At June 30, 2025, total deposits were $5.5 billion, reflecting a quarterly increase of $7.0 million, or 0.13% (0.51% annualized), compared to March 31, 2025.
      • The second quarter of 2025 included the exits/reductions of higher cost municipal deposits totaling approximately $77.7 million. Excluding the impact of these exits/reductions, total deposits increased approximately $84.7 million or 1.55% (6.22% annualized), compared to the first quarter of 2025.1
    • Net Interest Margin – Net interest margin was 3.60% for the three months ended June 30, 2025, compared to 3.38% for the three months ended March 31, 2025. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.59% and 3.37%, for the three months ended June 30, 2025 and March 31, 2025, respectively.1
    • Credit Quality – Total nonperforming assets were approximately $30.4 million, or 0.48% of total assets, as of June 30, 2025, compared to $56.1 million, or 0.89% of total assets, as of March 31, 2025. The $25.7 million decrease in nonperforming assets for the three months ended June 30, 2025, was primarily due to the resolution of approximately $24.1 million in non-performing assets, as discussed in more detail below.
      • Net loan charge-offs were $3.3 million, or 0.28% (annualized) of average total loans and loans held for sale, for the three months ended June 30 2025, compared to $1.4 million, or 0.13% (annualized) of average total loans and loans held for sale, during the three months ended March 31, 2025.
    • Capital – As of June 30, 2025, the Corporation’s ratio of common shareholders’ equity to total assets was 9.17% compared to 9.00% at March 31, 2025. As of June 30, 2025 and March 31, 2025, the Corporation’s ratio of tangible common equity to tangible assets, a non-GAAP measure, was 8.53% and 8.36%, respectively.1

    Executive Summary

    • Net income available to common shareholders (“earnings”) was $12.9 million, or $0.61 per diluted share, and $10.4 million, or $0.50 per diluted share, for the three months ended June 30, 2025 and March 31, 2025, respectively. Excluding after-tax merger costs, earnings were $13.2 million, or $0.63 per diluted share, for the three months ended June 30, 2025, reflecting an increase of $1.3 million, or 11.31%, and $0.06 per diluted share, or 10.53%, compared to earnings of $11.9 million, or $0.57 per diluted share, for the three months ended March 31, 2025.1 The quarterly increase was a result of an increase in net interest income and non-interest income, and a decrease in non-interest expense, partially offset by an increase in the provision for credit losses, as discussed in more detail below. Excluding after-tax merger costs in the second quarter 2025, earnings and diluted earnings per share when compared to earnings of $11.9 million, or $0.56 per diluted share, in the quarter ended June 30, 2024, increased $1.4 million, or 11.41%, and $0.07 per diluted share, or 12.50%, due to an increase in net interest income and non-interest income, partially offset by increases in non-interest expense and the provision for credit losses.1
    • Earnings were $23.3 million, or $1.10 per diluted share, for the six months ended June 30, 2025. Excluding after-tax merger costs, earnings were $25.1 million, or $1.19 per diluted share, for the six months ended June 30, 2025, reflecting an increase of $1.7 million, or 7.37%, and $0.08 per diluted share, or 7.21%, compared to earnings of $23.4 million, or $1.11 per diluted share, for the six months ended June 30, 2024.1 The year-to-date increase was a result of an increase in net interest income, partially offset by a decrease in non-interest income, and increases in non-interest expense and the provision for credit losses, as discussed in more detail below.
    • At June 30, 2025, loans totaled $4.7 billion, excluding the balances of syndicated loans. This total of $4.7 billion in loans represented a quarterly increase of $113.7 million, or 2.50% (10.04% annualized), compared to March 31, 2025, and a year-over-year increase of $228.7 million, or 5.17%, compared to June 30, 2024. The increase in loans for the quarter ended June 30, 2025, compared to the quarter ended March 31, 2025, and the year-over-year increase in loans as of June 30, 2025, compared to June 30, 2024, was primarily driven by growth in the ERIEBANK, Ridge View Bank, BankOnBuffalo, and the legacy CNB markets, as well as CNB Bank’s Private Banking division.
      • At June 30, 2025, the syndicated loan portfolio totaled $78.9 million, or 1.67% of total loans, compared to $69.2 million, or 1.50% of total loans, at March 31, 2025 and $53.9 million, or 1.20% of total loans, at June 30, 2024. The increase in syndicated lending balances of $9.7 million compared to March 31, 2025 and $25.0 million compared to June 30, 2024 reflects the Corporation’s continued focus on evaluating the level and composition of its syndicated loan portfolio to ensure it continues to provide strong credit quality, profitable use of excess liquidity, and complement the Corporation’s loan growth from its in-market customer relationships.
    • At June 30, 2025, total deposits were $5.5 billion, reflecting a quarterly increase of $7.0 million, or 0.13% (0.51% annualized), compared to March 31, 2025, and a year-over-year increase of $356.2 million, or 6.97%, compared to total deposits measured as of June 30, 2024. The growth in total deposits in the second quarter of 2025 includes the exit/reductions of higher cost municipal deposits totaling approximately $77.7 million. Excluding the impact of these exit/reductions, total deposits increased approximately $84.7 million or 1.55% (6.22% annualized).1 The increase in deposit balances for the quarter ended June 30, 2025, compared to the quarter ended March 31, 2025, and the year-over-year increase in deposit balances as of June 30, 2025, was driven primarily by higher Treasury Management sourced business and municipal deposits, coupled with growth in retail accounts, including time deposits. Additional deposit and liquidity profile details were as follows:
      • At June 30, 2025, the total estimated uninsured deposits for CNB Bank were approximately $1.6 billion, or approximately 28.62% of total CNB Bank deposits. However, when excluding $103.5 million of affiliate company deposits and $509.0 million of pledged-investment collateralized deposits, the adjusted amount and percentage of total estimated uninsured deposits was approximately $982.0 million, or approximately 17.63% of total CNB Bank deposits as of June 30, 2025.
        • The level of adjusted uninsured deposits at June 30, 2025 remained relatively unchanged, compared to the level at March 31, 2025, when the total estimated uninsured deposits for CNB Bank were approximately $1.6 billion, or approximately 27.94% of total CNB Bank deposits. Excluding $101.9 million of affiliate company deposits and $481.2 million of pledged-investment collateralized deposits, the adjusted amount and percentage of total estimated uninsured deposits were approximately $971.1 million, or approximately 17.46% of total CNB Bank deposits as of March 31, 2025.
      • At June 30, 2025, the average deposit balance per account for CNB Bank was approximately $34 thousand, which has remained stable at this level for an extended period.
      • At June 30, 2025, the Corporation had $332.2 million of cash equivalents held in CNB Bank’s interest-bearing deposit account at the Federal Reserve. These excess funds, when combined with collective contingent liquidity resources of $4.6 billion including (i) available borrowing capacity from the Federal Home Bank of Pittsburgh (“FHLB”) and the Federal Reserve, and (ii) available unused commitments from brokered deposit sources and other third-party funding channels, including previously established lines of credit from correspondent banks, resulted in the total available liquidity sources for the Corporation as of June 30, 2025 to be approximately 5.1 times the estimated amount of adjusted uninsured deposit balances discussed above.
    • At June 30, 2025, March 31, 2025, and June 30, 2024, the Corporation had no outstanding short-term borrowings from the FHLB or the Federal Reserve’s Discount Window.
    • At June 30, 2025, the Corporation’s pre-tax net unrealized losses on the combined portfolios of available-for-sale and held-to-maturity securities totaled $55.6 million, or 8.73% of total shareholders’ equity, compared to $61.7 million, or 9.88% of total shareholders’ equity, at March 31, 2025, and $84.1 million, or 14.33% of total shareholders’ equity, at June 30, 2024. The change in unrealized losses during the first second quarter 2025 was primarily due to changes in the yield curve compared to the first quarter of 2024 and second quarter of 2024, coupled with the Corporation’s scheduled bond maturities, which were all realized at par. Importantly, all regulatory capital ratios for the Corporation would still exceed regulatory “well-capitalized” levels as of June 30, 2025, March 31, 2025, and June 30, 2024 if the net unrealized losses at the respective dates were fully recognized. Additionally, the Corporation continued to maintain excess liquidity at its holding company totaling approximately $102.2 million of liquid funds at June 30, 2025, which more than covers the $55.6 million in combined available-for-sale and held-to-maturity unrealized losses on investments held primarily in its wholly-owned banking subsidiary, as an immediately available source of contingent capital to be down-streamed to CNB Bank, if necessary.
    • Total nonperforming assets were approximately $30.4 million, or 0.48% of total assets, as of June 30, 2025, compared to $56.1 million, or 0.89% of total assets, as of March 31, 2025, and $36.5 million, or 0.62% of total assets, as of June 30, 2024. The $25.7 million decrease in nonperforming assets for the three months ended June 30, 2025, compared to the three months ended March 31, 2025 was primarily due to paydowns to workout-related efforts on two larger nonaccrual loan relationships, and resulting charge-offs on these workouts and other smaller problem loans. The most significant charge-offs were $1.5 million for an owner-occupied commercial real estate relationship (balance of approximately $3.8 million with a specific reserve balance of $1.4 million) and a $1.1 million charge-off of a multifamily commercial real estate loan (balance of approximately $20.3 million with a specific reserve balance of $885 thousand). The $6.2 million decrease in nonperforming assets at June 30, 2025 compared to June 30, 2024 was due to charge-off of the owner-occupied commercial real estate relationship previously discussed, coupled with paydowns to nonaccrual loans. For the three months ended June 30, 2025, net loan charge-offs were $3.3 million, or 0.28% (annualized) of average total loans and loans held for sale, compared to $1.4 million, or 0.13% (annualized) of average total loans and loans held for sale, during the three months ended March 31, 2025, and $2.8 million, or 0.25% (annualized) of average total loans and loans held for sale, during the three months ended June 30, 2024.
    • Pre-provision net revenue (“PPNR”), a non-GAAP measure, was $21.6 million for the three months ended June 30, 2025 and $15.9 million for the three months ended March 31, 2025.1 Excluding merger costs, PPNR was $21.9 million for the three months ended June 30, 2025, compared to $17.4 million and $18.6 million for the three months ended March 31, 2025 and June 30, 2024, respectively.1 The second quarter 2025 PPNR, excluding merger costs, when compared to the first quarter of 2025, reflected increases in net interest income and non-interest income and a decrease in non-interest expense. The increase in PPNR for the three months ended June 30, 2025, compared to the three months ended June 30, 2024 was primarily attributable to higher net interest income, partially offset by an increase in non-interest expenses. PPNR was $37.5 million for the six months ended June 30, 2025.1 Excluding merger costs, PPNR was $39.4 million for the six months ended June 30, 2025, compared to $35.3 million for the six months ended June 30, 2024.1 The year-to-date 2025 PPNR, excluding merger costs, when compared to the year-to-date 2024 PPNR, reflected increases in net interest income, partially offset by a decrease in non-interest income and an increase in non-interest expense.

    1 This release contains references to certain financial measures that are not defined by U.S. Generally Accepted Accounting Principles (“GAAP”). Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. A reconciliation of these non-GAAP financial measures is provided in the “Reconciliation of Non-GAAP Financial Measures” section.

    Michael Peduzzi, President and CEO of both the Corporation and CNB Bank, stated, “Favorably, our second quarter earnings and growth reflected the positive momentum of continued commercial loan growth and demand that we saw at the end of the first quarter with both existing relationships and new prospects. This momentum included realized deposit and relationship growth based in our Treasury Management activities, as evidenced by favorable growth in our noninterest-bearing deposits. These volume increases in our core net interest income components were complemented by increases in our average loan yield and continued decreases in our cost of interest-bearing funds, resulting in a favorable 22 basis point increase in our taxable-equivalent net interest margin compared to the first quarter. We continue to see both a sound loan pipeline and opportunities for further cost-of-fund interest reductions as we enter the third quarter. Importantly, as we release these second quarter earnings, we are ready to close and begin the integration of our acquisition of ESSA Bancorp, Inc. and its subsidiary, ESSA Bank and Trust (collectively, “ESSA”), with legal merger close scheduled to occur at the end of day on July 23, 2025. The addition of this wonderful franchise and related employee team will add significantly to CNB’s earning-asset base and market footprint, allowing us to deliver great banking and wealth management experiences for clients in the Northeastern Pennsylvania markets served by ESSA. In addition to the increased net interest income earning and growth capabilities we expect from our business combination, we look to continue to focus on tightly managing the Corporation’s core overhead, while realizing economies-of-scale cost efficiencies from the ESSA acquisition, as we look to realize both increased positive operating leverage and further accretion to our net interest margin and overall earnings. We are honored to welcome the clients, employees, and investors from ESSA to our CNB family.”

    Other Balance Sheet Highlights

    • Book value per common share was $27.44 and $27.01 at June 30, 2025 and March 31, 2025, respectively. Excluding after-tax merger costs, book value per common share was $27.53, reflecting an increase of $0.45, or 6.67% (annualized), from $27.08 at March 31, 2025 and a year-over-year increase of $2.34, or 9.29%, from $25.19 at June 30, 2024.1 Tangible book value per common share, a non-GAAP measure, was $25.35 and $24.91 as of June 30, 2025 and March 31, 2025, respectively. Excluding after-tax merger costs, tangible book value per common share, a non-GAAP measure, was $25.44, reflecting an increase of $0.46, or 7.39% (annualized) from $24.98 as of March 31, 2025 and a year-over-year increase of $2.35, or 10.18%, from $23.09 as of June 30, 2024.1 The increases in book value per common share and tangible book value per common share, excluding after-tax merger costs, from March 31, 2025 to June 30, 2025 were primarily due to a $9.1 million increase in retained earnings, coupled with a $3.0 million decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio for the second quarter of 2025. The increases in book value per common share and tangible book value per common share, excluding after-tax merger costs, from June 30, 2024 to June 30, 2025 were primarily due to a $35.0 million increase in retained earnings over the twelve months ended June 30, 2025 coupled with a $13.9 million decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio for the past twelve months.

    Loan Portfolio Profile

    • As part of its lending policy and risk management activities, the Corporation tracks lending exposure by industry classification and type to determine potential risks associated with industry concentrations, and to identify any concentration risk issues that could lead to additional credit loss exposure. An important and recurring part of this process involves the Corporation’s continued measurement and evaluation of its exposure to the office, hospitality, and multifamily industries within its commercial real estate portfolio. Even given the Corporation’s historically sound underwriting protocols and high credit quality standards for borrowers in the commercial real estate industry segments, the Corporation monitors numerous relevant sensitivity elements, including occupancy, loan-to-value, absorption and cap rates, debt service coverage and covenant compliance, and developer/lessor financial strength both in the project and globally. At June 30, 2025, the Corporation had the following key metrics related to its office, hospitality and multifamily portfolios:
      • Commercial office loans:
        • There were 113 outstanding loans, totaling $111.1 million, or 2.35% of total Corporation loans outstanding;
        • There were no nonaccrual commercial office loans;
        • There were two past-due commercial office loans that totaled $209 thousand, or 0.19% of total commercial office loans outstanding; and
        • The average outstanding balance per commercial office loan was $983 thousand.
      • Commercial hospitality loans:
        • There were 156 outstanding loans, totaling $321.2 million, or 6.79% of total Corporation loans outstanding;
        • There were no nonaccrual commercial hospitality loans;
        • There were no past-due commercial hospitality loans; and
        • The average outstanding balance per commercial hospitality loan was $2.1 million.
      • Commercial multifamily loans:
        • There were 223 outstanding loans, totaling $405.4 million, or 8.57% of total Corporation loans outstanding;
        • There was one nonaccrual and past-due commercial multifamily loan that totaled $199 thousand, or 0.05% of total multifamily loans outstanding; and
        • The average outstanding balance per commercial multifamily loan was $1.8 million.

    The Corporation had no commercial office, hospitality or multifamily loan relationships considered by the banking regulators to be high volatility commercial real estate (“HVCRE”) credits.

    Performance Ratios

    • Annualized return on average equity was 8.83% and 7.52% for the three months ended June 30, 2025 and March 31, 2025, respectively. Excluding after-tax merger costs, annualized return on average equity was 9.06% for the three months ended June 30, 2025, compared to 8.49% and 8.94% for the three months ended March 31, 2025 and June 30, 2024, respectively.1 Annualized return on average equity was 8.18% for the six months ended June 30, 2025. Excluding after-tax merger costs, annualized return on average equity was 8.78% for the six months ended June 30, 2025, compared to 8.86% for the six months ended June 30, 2024.1
    • Annualized return on average tangible common equity, a non-GAAP measure, was 9.71% and 8.15% for the three months ended June 30, 2025 and March 31, 2025, respectively. Excluding after-tax merger costs, annualized return on average tangible common equity was 9.98% for the three months ended June 30, 2025, compared to 9.32% and 9.93% for the three months ended March 31, 2025 and June 30, 2024, respectively.1 Annualized return on average tangible common equity was 8.95% for the six months ended June 30, 2025. Excluding after-tax merger costs, annualized return on average tangible common equity was 9.66% for the six months ended June 30, 2025, compared to 9.85% for the six months ended June 30, 2024.1
    • The Corporation’s efficiency ratio was 64.73% and 72.07% for the three months ended June 30, 2025 and March 31, 2025, respectively, and 64.08% and 71.28%, respectively, on a fully tax-equivalent basis, a non-GAAP measure.1 Excluding merger costs, the efficiency ratio on a fully tax-equivalent basis, a non-GAAP measure, was 63.50%, compared to 68.62% and 65.20% for the three months ended March 31, 2025 and June 30, 2024, respectively.1 The quarter-over-quarter decrease was primarily driven by higher net interest income and non-interest income and decreased non-interest expense, as further discussed below. The year-over-year decrease was primarily driven by an increase in net interest income, partially offset by an increase in non-interest expense. The Corporation’s efficiency ratio was 68.27% for the six months ended June 30, 2025, and 67.55% on a fully tax-equivalent basis, a non-GAAP measure.1 Excluding merger costs, the efficiency ratio on a fully tax-equivalent basis, a non-GAAP measure, was 65.97%, compared to 66.74% for the six months ended June 30, 2024.1 The year-over-year decrease was primarily driven by higher net interest income, partially offset by higher non-interest expense.

    Revenue

    • Total revenue (net interest income plus non-interest income) was $61.2 million for the three months ended June 30, 2025, an increase when compared to $56.9 million and $54.6 million for the three months ended March 31, 2025 and June 30, 2024, respectively.
      • Net interest income was $52.2 million for the three months ended June 30, 2025, compared to $48.4 million and $45.7 million for the three months ended March 31, 2025 and June 30, 2024, respectively. When comparing the second quarter of 2025 to the first quarter of 2025, the increase in net interest income of $3.8 million, or 7.78% (31.19% annualized), was primarily due to the change in the earning asset mix from interest-bearing deposits to loans, coupled with changes in the yield curve.
      • Net interest margin was 3.60%, 3.38%, and 3.36% for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.59%, 3.37% and 3.34% for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively.1
        • The yield on earning assets of 5.89% for the three months ended June 30, 2025 increased 16 basis points from March 31, 2025 and was unchanged compared to June 30, 2024. The increase in yield in the second quarter of 2025 compared to quarter ended March 31, 2025 was attributable to quarter-over-quarter increases in the yield on both the loan and securities portfolios.
        • The cost of interest-bearing liabilities was 2.88% for the three months ended June 30, 2025, representing a decrease of 5 basis points from March 31, 2025 and a 29 basis points from June 30, 2024. The decrease in the cost of interest-bearing liabilities is primarily the result of the Corporation’s targeted interest-bearing deposit rate decreases in response to the Federal Reserve rate decreases since mid-September 2024.
    • Total revenue was $118.1 million for the six months ended June 30, 2025 compared to $108.8 million for the six months ended June 30, 2024.
      • Net interest income was $100.6 million for the six months ended June 30, 2025 compared to $90.9 million for the six months ended June 30, 2024. When comparing the six months ended June 30, 2025 to the six months ended June 30, 2024, the increase in net interest income of $9.7 million, or 10.65% (21.37% annualized), was due to investment and loan growth.
      • Net interest margin was 3.49% and 3.38% for the six months ended June 30, 2025 and June 30, 2024, respectively. Net interest margin on a fully tax-equivalent basis, a non-GAAP measure, was 3.48% and 3.36% for the six months ended June 30, 2025 and June 30, 2024, respectively.1
        • The yield on earning assets of 5.81% for the six months ended June 30, 2025 decreased 4 basis points from June 30, 2024. The decrease in yield compared to June 30, 2024 was attributable to lower loan yields on variable and floating-rate loans following the three Federal Reserve rate decreases totaling 100 basis points since mid-September 2024.
        • The cost of interest-bearing liabilities of 2.90% for the six months ended June 30, 2025 decreased 20 basis points from June 30, 2024, primarily the result of the Corporation’s targeted interest-bearing deposit rate decreases in response to the Federal Reserve rate decreases since mid-September 2024.
    • Total non-interest income was $9.0 million for the three months ended June 30, 2025 compared to $8.5 million and $8.9 million for the three months ended March 31, 2025 and June 30, 2024, respectively. The quarter-over-quarter increase was primarily attributable to an increase in wealth and asset management fees, bank owned life insurance revenue (death benefit), and an improvement in unrealized gains on equity securities, partially offset by lower pass-through income from small business investment companies (“SBICs”). The increase year-over-year in non-interest income was primarily due to increases in bank owned life insurance (death benefit) and an improvement in unrealized gains on equity securities, partially offset by lower other charges and fees, coupled with lower pass-through income from SBICs.
    • Total non-interest income was $17.5 million for the six months ended June 30, 2025 compared to $17.8 million for the six months ended June 30, 2024. This decrease was primarily due to lower other charges and fees, coupled with lower pass-through income from SBICs, partially offset by an increase in unrealized gains on equity securities, bank owned life insurance revenue (death benefit) and card processing and interchange income.

    Non-Interest Expense

    • For the three months ended June 30, 2025 and March 31, 2025 total non-interest expense was $39.6 million and $41.0 million, respectively. Excluding merger costs, total non-interest expense for the three months ended June 30, 2025 was $39.3 million, compared to $39.5 million and $36.0 million for the three months ended March 31, 2025 and June 30, 2024, respectively.1 Excluding merger costs, the decrease of $249 thousand, or 0.63%, from the three months ended March 31, 2025, was primarily driven by a decrease in salaries and benefits, due to a decrease in staffing levels, coupled with retirement plan contribution accruals. The Corporation tightly managed its core back-office staffing levels in anticipation of the impact of staffing additions from the planned ESSA acquisition. Excluding merger costs, the $3.3 million increase in non-interest expense compared to the three months ended June 30, 2024 was primarily driven by higher salaries and benefits, reflecting increased incentive compensation accruals and retirement plan contribution accruals. Additionally, occupancy expense increased, primarily due to higher rent expense related to three additional full-service office locations, coupled with an increase in card processing and interchange expenses and other non-interest expenses (timing of business development expenses). The increase in card processing and interchange expenses related to the changes made by the Corporation to its cardholder rewards program during the second quarter 2024.
    • For the six months ended June 30, 2025 total non-interest expense was $80.7 million. Excluding merger costs, total non-interest expense was $78.8 million, compared to $73.4 million for the six months ended June 30, 2024. Excluding merger costs, the increase of $5.4 million, or 7.30%, from the six months ended June 30, 2024, was primarily driven by higher salaries and benefits, reflecting increased base salaries for inflationary annual increases, higher incentive compensation accruals, and increased retirement plan contribution accruals. Additionally, occupancy expense increased, primarily due to higher rent expense related to three additional full-service office locations, coupled with an increase in card processing and interchange expenses and other non-interest expenses (timing of business development expenses).

    Income Taxes

    • Income tax expense for the three months ended June 30, 2025 was $3.3 million, representing a 19.10% effective tax rate, compared to $2.9 million, representing a 19.96% effective tax rate, for the three months ended March 31, 2025, and $3.0 million, representing an 19.03% effective tax rate, for the three months ended June 30, 2024. The effective tax rate for the first and second quarters of 2025 was impacted by non-deductible merger costs of $1.3 million and $357 thousand, respectively. Income tax expense for the six months ended June 30, 2025 was $6.2 million, representing a 19.49% effective tax rate, compared to $5.9 million, representing a 18.70% effective tax rate, for the six months ended June 30, 2025.

    Asset Quality

    • Total nonperforming assets were approximately $30.4 million, or 0.48% of total assets, as of June 30, 2025, compared to $56.1 million, or 0.89% of total assets, as of March 31, 2025, and $36.5 million, or 0.62% of total assets, as of June 30, 2024, as discussed in more detail above.
    • The allowance for credit losses measured as a percentage of total loans was 1.02% as of June 30, 2025, compared to 1.03% as of as of March 31, 2025, and 1.02% as of June 30, 2024. In addition, the allowance for credit losses as a percentage of nonaccrual loans was 169.52% as of June 30, 2025, compared to 87.57% and 130.88% as of March 31, 2025 and June 30, 2024, respectively. The change in the allowance for credit losses as a percentage of nonaccrual loans was primarily attributable to the levels of nonperforming assets, as discussed in more detail above.
    • The provision for credit losses was $4.3 million for the three months ended June 30, 2025, compared to $1.6 million and $2.6 million for the three months ended March 31, 2025 and June 30, 2024, respectively. The $2.8 million and $1.7 million increases in the provision expense for the second quarter of 2025 compared to the first quarter of 2025 and second quarter 2024, respectively, were primarily a result of increased net loan charge-offs, as discussed in more detail above, coupled with higher loan portfolio growth. The provision for credit losses was $5.9 million for the six months ended June 30, 2025, compared to $3.9 million for the six months ended June 30, 2024. The $2.0 million increase in the provision expense for the first six months of 2025 compared to the first six months of 2024 was primarily a result of higher loan portfolio growth for the six months ended June 30, 2025 compared to the six months ended June 30, 2024, coupled with increased net loan charge-offs, as discussed above.
    • As discussed in more detail above, for the three months ended June 30, 2025, net loan charge-offs were $3.3 million, or 0.28% (annualized) of average total loans and loans held for sale, compared to $1.4 million, or 0.13% (annualized) of average total loans and loans held for sale, during the three months ended March 31, 2025, and $2.8 million, or 0.25% (annualized) of average total loans and loans held for sale, during the three months ended June 30, 2024.
    • For the six months ended June 30, 2025, net loan charge-offs were $4.7 million, or 0.21% (annualized) of average total loans and loans held for sale, compared to $4.1 million, or 0.19% (annualized) of average total loans and loans held for sale, during the six months ended June 30, 2024.

    Capital

    • As of June 30, 2025, the Corporation’s total shareholders’ equity was $637.3 million, representing an increase of $12.8 million, or 2.05% (8.20% annualized), from March 31, 2025, and an increase of $50.6 million, or 8.62%, from June 30, 2024. The changes resulted from an increase in the Corporation’s retained earnings (net income, partially offset by the common and preferred stock dividends paid) and a decrease in accumulated other comprehensive loss primarily from the after-tax impact of temporary unrealized valuation changes in the Corporation’s available-for-sale investment portfolio.
    • Regulatory capital ratios for the Corporation continue to exceed regulatory “well-capitalized” levels as of June 30, 2025, consistent with prior periods.
    • As of June 30, 2025, the Corporation’s ratio of common shareholders’ equity to total assets was 9.17% compared to 9.00% at March 31, 2025 and 8.99% at June 30, 2024. As of June 30, 2025 and March 31, 2025, the Corporation’s ratio of tangible common equity to tangible assets, a non-GAAP measure, was 8.53% and 8.36%, respectively. Excluding merger costs, the Corporation’s ratio of tangible common equity to tangible assets, a non-GAAP measure, as of June 30, 2025 was 8.56% compared to 8.38% at March 31, 2025 and 8.30% at June 30, 2024.1 The increase in the June 30, 2025 ratio of tangible common equity to tangible assets compared to March 31, 2025 and June 30, 2024 was primarily the result of a decrease in accumulated other comprehensive loss, coupled with an increase in retained earnings, as discussed above.1

    Recent Events

    • On January 10, 2025, the Corporation announced that the Corporation and CNB Bank entered into a definitive merger agreement (the “Merger Agreement”) with ESSA Bancorp, Inc. (“ESSA”) and ESSA Bank and Trust in an all-stock transaction. Under the terms of the Merger Agreement, each outstanding share of ESSA common stock will be converted into the right to receive 0.8547 shares of the Corporation’s common stock. On June 30, 2025, the Corporation and ESSA announced they have received the requisite bank regulatory approvals and waivers from the Federal Deposit Insurance Corporation, the Pennsylvania Department of Banking and Securities and the Federal Reserve Bank of Philadelphia necessary for CNB to complete its acquisition of ESSA and ESSA Bank & Trust. The transaction is currently expected to close July 23, 2025, subject to customary closing conditions.

    About CNB Financial Corporation

    CNB Financial Corporation is a financial holding company with consolidated assets of approximately $6.3 billion. CNB Financial Corporation conducts business primarily through its principal subsidiary, CNB Bank. CNB Bank is a full-service bank engaging in a full range of banking activities and services, including trust and wealth management services, for individual, business, governmental, and institutional customers. CNB Bank operations include a private banking division, one loan production office, one drive-up office, one mobile office, and 55 full-service offices in Pennsylvania, Ohio, New York, and Virginia. CNB Bank, headquartered in Clearfield, Pennsylvania, with offices in Central and North Central Pennsylvania, serves as the multi-brand parent to various divisions. These divisions include ERIEBANK, based in Erie, Pennsylvania, with offices in Northwest Pennsylvania and Northeast Ohio; FCBank, based in Worthington, Ohio, with offices in Central Ohio; BankOnBuffalo, based in Buffalo, New York, with offices in Western New York; Ridge View Bank, based in Roanoke, Virginia, with offices in the Southwest Virginia region; and Impressia Bank, a division focused on banking opportunities for women, which operates in CNB Bank’s primary market areas. Additional information about CNB Financial Corporation may be found at www.CNBBank.bank.

    Forward-Looking Statements

    This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, with respect to the Corporation’s financial condition, liquidity, results of operations, future performance and business. These forward-looking statements are intended to be covered by the safe harbor for “forward-looking statements” provided by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that are not historical facts. Forward-looking statements include statements with respect to beliefs, plans, objectives, goals, expectations, anticipations, estimates and intentions that are subject to significant risks and uncertainties and are subject to change based on various factors (some of which are beyond the Corporation’s control). Forward-looking statements often include the words “believes,” “expects,” “anticipates,” “estimates,” “forecasts,” “intends,” “plans,” “targets,” “potentially,” “probably,” “projects,” “outlook” or similar expressions or future conditional verbs such as “may,” “will,” “should,” “would” and “could.” The Corporation’s actual results may differ materially from those contemplated by the forward-looking statements, which are neither statements of historical fact nor guarantees or assurances of future performance. Such known and unknown risks, uncertainties and other factors that could cause the actual results to differ materially from the statements, include, but are not limited to, (i) adverse changes or conditions in capital and financial markets, including actual or potential stresses in the banking industry; (ii) changes in interest rates; (iii) the credit risks of lending activities, including our ability to estimate credit losses and the allowance for credit losses, as well as the effects of changes in the level of, and trends in, loan delinquencies and write-offs; (iv) effectiveness of our data security controls in the face of cyber attacks and any reputational risks following a cybersecurity incident; (v) changes in general business, industry or economic conditions or competition; (vi) changes in any applicable law, rule, regulation, policy, guideline or practice governing or affecting financial holding companies and their subsidiaries or with respect to tax or accounting principles or otherwise; (vii) adverse economic effects from international trade disputes, including threatened or implemented tariffs imposed by the U.S. and threatened or implemented tariffs imposed by foreign countries in retaliation, or similar events impacting economic activity; (viii) the possibility that CNB and ESSA may be unable to achieve expected synergies and operating efficiencies in the merger within the executed timeframes or at all or to successfully integrate ESSA operations and those of CNB; (ix) higher than expected costs or other difficulties related to integration of combined or merged businesses; (x) the effects of business combinations and other acquisition transactions, including the inability to realize our loan and investment portfolios; (xi) changes in the quality or composition of our loan and investment portfolios; (xii) adequacy of loan loss reserves; (xiii) increased competition; (xiv) loss of certain key officers; (xv) deposit attrition; (xvi) rapidly changing technology; (xvii) unanticipated regulatory or judicial proceedings and liabilities and other costs; (xviii) changes in the cost of funds, demand for loan products or demand for financial services; and (xix) other economic, competitive, governmental or technological factors affecting our operations, markets, products, services and prices. Such developments could have an adverse impact on the Corporation’s financial position and results of operations. For more information about factors that could cause actual results to differ from those discussed in the forward-looking statements, please refer to the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of and the forward-looking statement disclaimers in the Corporation’s annual and quarterly reports filed with the Securities and Exchange Commission.

    The forward-looking statements are based upon management’s beliefs and assumptions and are made as of the date of this press release. Factors or events that could cause the Corporation’s actual results to differ may emerge from time to time, and it is not possible for the Corporation to predict all of them. The Corporation undertakes no obligation to publicly update or revise any forward-looking statements included in this press release or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise, except to the extent required by law. In light of these risks, uncertainties and assumptions, the forward-looking events discussed in this press release might not occur and you should not put undue reliance on any forward-looking statements.

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      Three Months Ended   Six Months Ended
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Income Statement                  
    Interest and fees on loans $ 75,408     $ 72,379     $ 72,142     $ 147,787     $ 143,655  
    Interest and dividends on securities and cash and cash equivalents   10,363       10,000       8,510       20,363       14,902  
    Interest expense   (33,574 )     (33,948 )     (34,935 )     (67,522 )     (67,618 )
    Net interest income   52,197       48,431       45,717       100,628       90,939  
    Provision for credit losses   4,338       1,556       2,591       5,894       3,911  
    Net interest income after provision for credit losses   47,859       46,875       43,126       94,734       87,028  
    Non-interest income                  
    Wealth and asset management fees   2,109       1,796       2,007       3,905       3,809  
    Service charges on deposit accounts   1,656       1,714       1,794       3,370       3,488  
    Other service charges and fees   427       510       712       937       1,407  
    Net realized gains on available-for-sale securities   —       —       —       —       —  
    Net realized and unrealized gains (losses) on equity securities   567       (249 )     (80 )     318       111  
    Mortgage banking   172       96       187       268       383  
    Bank owned life insurance   976       760       784       1,736       1,551  
    Card processing and interchange income   2,278       2,107       2,187       4,385       4,203  
    Other non-interest income   823       1,773       1,274       2,596       2,868  
    Total non-interest income   9,008       8,507       8,865       17,515       17,820  
    Non-interest expenses                  
    Salaries and benefits   19,348       20,564       17,676       39,912       36,463  
    Net occupancy expense of premises   4,032       4,038       3,580       8,070       7,220  
    Technology expense   5,462       5,378       5,573       10,840       10,645  
    Advertising expense   556       514       553       1,070       1,238  
    State and local taxes   1,301       1,292       1,237       2,593       2,380  
    Legal, professional, and examination fees   997       849       1,119       1,846       2,291  
    FDIC insurance premiums   937       985       1,018       1,922       2,008  
    Card processing and interchange expenses   1,253       1,160       878       2,413       2,057  
    Merger costs   357       1,529       —       1,886       —  
    Other non-interest expense   5,374       4,729       4,355       10,103       9,111  
    Total non-interest expenses   39,617       41,038       35,989       80,655       73,413  
    Income before income taxes   17,250       14,344       16,002       31,594       31,435  
    Income tax expense   3,294       2,863       3,045       6,157       5,878  
    Net income   13,956       11,481       12,957       25,437       25,557  
    Preferred stock dividends   1,075       1,075       1,075       2,150       2,150  
    Net income available to common shareholders $ 12,881     $ 10,406     $ 11,882     $ 23,287     $ 23,407  
                       
    Ending shares outstanding   21,119,894       20,980,245       20,998,117       21,119,894       20,980,245  
    Average diluted common shares outstanding   20,952,891       20,925,388       20,893,396       20,939,424       20,890,203  
    Diluted earnings per common share $ 0.61     $ 0.50     $ 0.56     $ 1.10     $ 1.11  
    Adjusted diluted earnings per common share, net of merger costs (non-GAAP)(1) $ 0.63     $ 0.57     $ 0.56     $ 1.19     $ 1.11  
    Cash dividends per common share $ 0.180     $ 0.180     $ 0.175     $ 0.360     $ 0.350  
    Dividend payout ratio   30 %     36 %     31 %     33 %     32 %
    Adjusted dividend payout ratio, net of merger costs (non-GAAP)(1)   29 %     32 %     31 %     30 %     32 %
     

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      Three Months Ended   Six Months Ended
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Average Balances                  
    Total loans and loans held for sale $ 4,668,051     $ 4,591,395     $ 4,441,633     $ 4,629,956     $ 4,435,246  
    Investment securities   803,082       798,427       734,087       800,722       732,710  
    Total earning assets   5,817,121       5,803,526       5,465,645       5,810,364       5,407,954  
    Total assets   6,235,036       6,220,575       5,854,978       6,227,901       5,792,485  
    Noninterest-bearing deposits   829,328       814,441       761,270       821,927       749,124  
    Interest-bearing deposits   4,558,732       4,574,700       4,321,678       4,566,673       4,275,406  
    Shareholders’ equity   633,848       619,409       583,221       626,739       579,991  
    Tangible common shareholders’ equity (non-GAAP)(1)   532,005       517,550       481,309       524,888       478,069  
                       
    Average Yields (annualized)                  
    Total loans and loans held for sale   6.50 %     6.41 %     6.55 %     6.46 %     6.53 %
    Investment securities   2.83 %     2.75 %     2.14 %     2.79 %     2.08 %
    Total earning assets   5.89 %     5.73 %     5.89 %     5.81 %     5.85 %
    Interest-bearing deposits   2.84 %     2.89 %     3.15 %     2.87 %     3.07 %
    Interest-bearing liabilities   2.88 %     2.93 %     3.17 %     2.90 %     3.10 %
                       
    Performance Ratios (annualized)                  
    Return on average assets   0.90 %     0.75 %     0.89 %     0.82 %     0.89 %
    Adjusted return on average assets, net of merger costs (non-GAAP)(1)   0.92 %     0.85 %     0.89 %     0.88 %     0.89 %
    Return on average equity   8.83 %     7.52 %     8.94 %     8.18 %     8.86 %
    Adjusted return on average equity, net of merger costs (non-GAAP)(1)   9.06 %     8.49 %     8.94 %     8.78 %     8.86 %
    Return on average tangible common equity (non-GAAP)(1)   9.71 %     8.15 %     9.93 %     8.95 %     9.85 %
    Adjusted return on average tangible common equity (non-GAAP)(1)   9.98 %     9.32 %     9.93 %     9.66 %     9.85 %
    Net interest margin, fully tax equivalent basis (non-GAAP)(1)   3.59 %     3.37 %     3.34 %     3.48 %     3.36 %
    Efficiency ratio, fully tax equivalent basis (non-GAAP)(1)   64.08 %     71.28 %     65.20 %     67.55 %     66.74 %
    Adjusted efficiency ratio, fully tax equivalent basis (non-GAAP)(1)   63.50 %     68.62 %     65.20 %     65.97 %     66.74 %
                       
    Net Loan Charge-Offs                  
    CNB Bank net loan charge-offs $ 2,848     $ 926     $ 2,348     $ 3,774     $ 3,226  
    Holiday Financial net loan charge-offs   455       513       456       968       922  
    Total Corporation net loan charge-offs $ 3,303     $ 1,439     $ 2,804     $ 4,742     $ 4,148  
    Annualized net loan charge-offs / average total loans and loans held for sale   0.28 %     0.13 %     0.25 %     0.21 %     0.19 %
     

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024
    Ending Balance Sheet          
    Cash and due from banks $ 88,721     $ 68,745     $ 56,031  
    Interest-bearing deposits with Federal Reserve   332,214       447,053       271,943  
    Interest-bearing deposits with other financial institutions   4,476       4,359       3,171  
    Total cash and cash equivalents   425,411       520,157       331,145  
    Debt securities available-for-sale, at fair value   523,198       516,412       359,900  
    Debt securities held-to-maturity, at amortized cost   270,032       282,159       354,569  
    Equity securities   10,937       10,293       9,654  
    Loans held for sale   833       860       642  
    Loans receivable          
    Syndicated loans   78,936       69,189       53,938  
    Loans   4,654,484       4,540,820       4,425,754  
    Total loans receivable   4,733,420       4,610,009       4,479,692  
    Less: allowance for credit losses   (48,329 )     (47,357 )     (45,532 )
    Net loans receivable   4,685,091       4,562,652       4,434,160  
    Goodwill and other intangibles   43,874       43,874       43,874  
    Core deposit intangible   173       190       241  
    Other assets   358,928       358,911       352,386  
    Total Assets $ 6,318,477     $ 6,295,508     $ 5,886,571  
               
    Noninterest-bearing demand deposits $ 855,788     $ 842,398     $ 762,918  
    Interest-bearing demand deposits   698,902       719,460       693,074  
    Savings   3,162,515       3,160,618       3,140,505  
    Certificates of deposit   749,877       737,602       514,348  
    Total deposits   5,467,082       5,460,078       5,110,845  
    Subordinated debentures   20,620       20,620       20,620  
    Subordinated notes, net of issuance costs   84,722       84,646       84,419  
    Other liabilities   108,772       105,656       83,987  
    Total liabilities   5,681,196       5,671,000       5,299,871  
    Common stock   —       —       —  
    Preferred stock   57,785       57,785       57,785  
    Additional paid in capital   218,375       220,254       218,756  
    Retained earnings   397,004       387,925       361,987  
    Treasury stock   (2,420 )     (4,944 )     (4,438 )
    Accumulated other comprehensive loss   (33,463 )     (36,512 )     (47,390 )
    Total shareholders’ equity   637,281       624,508       586,700  
    Total liabilities and shareholders’ equity $ 6,318,477     $ 6,295,508     $ 5,886,571  
               
    Book value per common share $ 27.44     $ 27.01     $ 25.19  
    Adjusted book value per common share (non-GAAP)(1) $ 27.53     $ 27.08     $ 25.19  
    Tangible book value per common share (non-GAAP)(1) $ 25.35     $ 24.91     $ 23.09  
    Adjusted tangible book value per common share (non-GAAP)(1) $ 25.44     $ 24.98     $ 23.09  
                           

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024
    Capital Ratios          
    Tangible common equity / tangible assets (non-GAAP)(1)   8.53 %     8.36 %     8.30 %
    Adjusted tangible common equity / tangible assets (non-GAAP)(1)   8.56 %     8.38 %     8.30 %
    Tier 1 leverage ratio(2)   10.42 %     10.27 %     10.56 %
    Common equity tier 1 ratio(2)   11.78 %     11.85 %     11.71 %
    Tier 1 risk-based ratio(2)   13.38 %     13.50 %     13.41 %
    Total risk-based ratio(2)   16.14 %     16.30 %     16.20 %
               
    Asset Quality Detail          
    Nonaccrual loans $ 28,509     $ 54,079     $ 34,788  
    Loans 90+ days past due and accruing   256       308       112  
    Total nonperforming loans   28,765       54,387       34,900  
    Other real estate owned   1,624       1,664       1,641  
    Total nonperforming assets $ 30,389     $ 56,051     $ 36,541  
               
    Asset Quality Ratios          
    Nonperforming assets / Total loans + OREO   0.64 %     1.22 %     0.82 %
    Nonperforming assets / Total assets   0.48 %     0.89 %     0.62 %
    Ratio of allowance for credit losses on loans to nonaccrual loans   169.52 %     87.57 %     130.88 %
    Allowance for credit losses / Total loans   1.02 %     1.03 %     1.02 %
               
               
    Consolidated Financial Data Notes:          
    (1) Management uses non-GAAP financial information in its analysis of the Corporation’s performance. Management believes that these non-GAAP measures provide a greater understanding of ongoing operations, enhance comparability of results of operations with prior periods and show the effects of significant gains and charges in the periods presented. The Corporation’s management believes that investors may use these non-GAAP measures to analyze the Corporation’s financial performance without the impact of unusual items or events that may obscure trends in the Corporation’s underlying performance. This non-GAAP data should be considered in addition to results prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results. Limitations associated with non-GAAP financial measures include the risks that persons might disagree as to the appropriateness of items included in these measures and that different companies might calculate these measures differently. A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).
    (2) Capital ratios as of June 30, 2025 are estimated pending final regulatory filings.
     

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      Average Balances, Income and Interest Rates on a Taxable Equivalent Basis
      Three Months Ended,
      June 30, 2025   March 31, 2025   June 30, 2024
      Average
    Balance    		   Annual
    Rate    		   Interest
    Inc./Exp.    		   Average
    Balance    		   Annual
    Rate    		   Interest
    Inc./Exp.    		   Average
    Balance    		   Annual
    Rate    		   Interest
    Inc./Exp.
    ASSETS:                                  
    Securities:                                  
    Taxable(1) (4) $ 771,152     2.82 %   $ 5,696   $ 765,654     2.73 %   $ 5,461   $ 702,036     2.09 %   $ 3,941
    Tax-exempt(1) (2) (4)   24,260     2.64       174     25,345     2.69       181     25,088     2.59       178
    Equity securities(1) (2)   7,670     5.44       104     7,428     5.84       107     6,963     5.72       99
    Total securities(4)   803,082     2.83       5,974     798,427     2.75       5,749     734,087     2.14       4,218
    Loans receivable:                                  
    Commercial(2) (3)   1,473,560     6.71       24,664     1,466,323     6.74       24,369     1,416,476     6.85       24,133
    Commercial & residential mortgages and loans held for sale(2) (3)   3,068,519     6.18       47,295     3,001,317     6.02       44,572     2,897,473     6.15       44,331
    Consumer(3)   125,972     11.72       3,681     123,755     12.01       3,665     127,684     12.17       3,863
    Total loans receivable(3)   4,668,051     6.50       75,640     4,591,395     6.41       72,606     4,441,633     6.55       72,327
    Interest-bearing deposits with the Federal Reserve and other financial institutions   345,988     5.13       4,422     413,704     4.20       4,284     289,925     5.99       4,321
    Total earning assets   5,817,121     5.89     $ 86,036     5,803,526     5.73     $ 82,639     5,465,645     5.89     $ 80,866
    Noninterest-bearing assets:                                  
    Cash and due from banks   58,530               58,152               53,710          
    Premises and equipment   129,093               129,188               112,386          
    Other assets   277,241               277,051               268,930          
    Allowance for credit losses   (46,949 )             (47,342 )             (45,693 )        
    Total non interest-bearing assets   417,915               417,049               389,333          
    TOTAL ASSETS $ 6,235,036             $ 6,220,575             $ 5,854,978          
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                                  
    Demand—interest-bearing $ 707,932     0.97 %   $ 1,719   $ 704,874     0.88 %   $ 1,527   $ 713,431     0.76 %   $ 1,342
    Savings   3,107,520     3.01       23,286     3,131,697     3.09       23,840     3,097,598     3.57       27,464
    Time   743,280     3.92       7,271     738,129     3.99       7,267     510,649     3.93       4,988
    Total interest-bearing deposits   4,558,732     2.84       32,276     4,574,700     2.89       32,634     4,321,678     3.15       33,794
    Short-term borrowings   —     —       —     —     —       —     —     0.00       —
    Finance lease liabilities   16,861     5.28       222     15,143     6.32       236     259     4.66       3
    Subordinated notes and debentures   105,304     4.10       1,076     105,228     4.15       1,078     105,001     4.36       1,138
    Total interest-bearing liabilities   4,680,897     2.88     $ 33,574     4,695,071     2.93     $ 33,948     4,426,938     3.17     $ 34,935
    Demand—noninterest-bearing   829,328               814,441               761,270          
    Other liabilities   90,963               91,654               83,549          
    Total Liabilities   5,601,188               5,601,166               5,271,757          
    Shareholders’ equity   633,848               619,409               583,221          
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 6,235,036             $ 6,220,575             $ 5,854,978          
    Interest income/Earning assets     5.89 %   $ 86,036       5.73 %   $ 82,639       5.89 %   $ 80,866
    Interest expense/Interest-bearing liabilities     2.88       33,574       2.93       33,948       3.17       34,935
    Net interest spread     3.01 %   $ 52,462       2.80 %   $ 48,691       2.72 %   $ 45,931
    Interest income/Earning assets     5.89 %     86,036       5.73 %     82,639       5.89 %     80,866
    Interest expense/Earning assets     2.30       33,574       2.36       33,948       2.55       34,935
    Net interest margin (fully tax-equivalent)     3.59 %   $ 52,462       3.37 %   $ 48,691       3.34 %   $ 45,931
    (1 ) Includes unamortized discounts and premiums.
    (2 ) Average yields are stated on a fully taxable equivalent basis (calculated using statutory rates of 21%) resulting from tax-free municipal securities in the investment portfolio and tax-free municipal loans in the commercial loan portfolio. The taxable equivalent adjustment to net interest income for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024 was $265 thousand, $260 thousand and $214 thousand, respectively.
    (3 ) Average loans receivable outstanding includes the average balance outstanding of all nonaccrual loans. Loans receivable consist of the average of total loans receivable less average unearned income. In addition, loans receivable interest income consists of loans receivable fees, including PPP deferred processing fees.
    (4 ) Average balance is computed using the fair value of AFS securities and amortized cost of HTM securities. Average yield has been computed using amortized cost average balance for AFS and HTM securities. The adjustment to the average balance for securities in the calculation of average yield for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024 was $(42.6) million, $(48.1) million and $(59.2) million, respectively.
       

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

      Average Balances, Income and Interest Rates on a Taxable Equivalent Basis
      Six Months Ended,
      June 30, 2025   June 30, 2024
      Average
    Balance    		   Annual
    Rate    		   Interest
    Inc./Exp.    		   Average
    Balance    		   Annual
    Rate    		   Interest
    Inc./Exp.
    ASSETS:                      
    Securities:                      
    Taxable(1) (4) $ 768,379     2.77 %   $ 11,157   $ 699,431     2.02 %   $ 7,592
    Tax-exempt(1) (2) (4)   24,800     2.66       354     26,415     2.59       369
    Equity securities(1) (2)   7,543     5.64       211     6,864     5.68       194
    Total securities(4)   800,722     2.79       11,722     732,710     2.08       8,155
    Loans receivable:                      
    Commercial(2) (3)   1,469,962     6.73       49,033     1,423,097     6.88       48,652
    Commercial & residential mortgages and loans held for sale(2) (3)   3,035,103     6.10       91,868     2,883,824     6.12       87,734
    Consumer(3)   124,891     11.86       7,346     128,325     11.97       7,641
    Total loans receivable(3)   4,629,956     6.46       148,247     4,435,246     6.53       144,027
    Interest-bearing deposits with the Federal Reserve and other financial institutions   379,686     4.62       8,706     239,998     5.70       6,806
    Total earning assets   5,810,364     5.81     $ 168,675     5,407,954     5.85     $ 158,988
    Noninterest-bearing assets:                      
    Cash and due from banks   58,337               53,611          
    Premises and equipment   129,141               111,199          
    Other assets   277,203               265,453          
    Allowance for credit losses   (47,144 )             (45,732 )        
    Total non interest-bearing assets   417,537               384,531          
    TOTAL ASSETS $ 6,227,901             $ 5,792,485          
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                      
    Demand—interest-bearing $ 706,412     0.93 %   $ 3,246   $ 726,681     0.70 %   $ 2,537
    Savings   3,119,542     3.05       47,126     3,031,438     3.52       53,075
    Time   740,719     3.96       14,538     517,287     3.78       9,730
    Total interest-bearing deposits   4,566,673     2.87       64,910     4,275,406     3.07       65,342
    Short-term borrowings   —     —       —     —     —       —
    Finance lease liabilities   16,005     5.77       458     271     4.45       6
    Subordinated notes and debentures   105,266     4.13       2,154     104,963     4.35       2,270
    Total interest-bearing liabilities   4,687,944     2.90     $ 67,522     4,380,640     3.10     $ 67,618
    Demand—noninterest-bearing   821,927               749,124          
    Other liabilities   91,291               82,730          
    Total Liabilities   5,601,162               5,212,494          
    Shareholders’ equity   626,739               579,991          
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $ 6,227,901             $ 5,792,485          
    Interest income/Earning assets     5.81 %   $ 168,675       5.85 %   $ 158,988
    Interest expense/Interest-bearing liabilities     2.90       67,522       3.10       67,618
    Net interest spread     2.91 %   $ 101,153       2.75 %   $ 91,370
    Interest income/Earning assets     5.81 %     168,675       5.85 %     158,988
    Interest expense/Earning assets     2.33       67,522       2.49       67,618
    Net interest margin (fully tax-equivalent)     3.48 %   $ 101,153       3.36 %   $ 91,370
    (1 ) Includes unamortized discounts and premiums.
    (2 ) Average yields are stated on a fully taxable equivalent basis (calculated using statutory rates of 21%) resulting from tax-free municipal securities in the investment portfolio and tax-free municipal loans in the commercial loan portfolio. The taxable equivalent adjustment to net interest income for the six months ended June 30, 2025 and 2024, was $525 thousand and $431 thousand, respectively.
    (3 ) Average loans receivable outstanding includes the average balance outstanding of all nonaccrual loans. Loans receivable consist of the average of total loans receivable less average unearned income. In addition, loans receivable interest income consists of loans receivable fees, including PPP deferred processing fees.
    (4 ) Average balance is computed using the fair value of AFS securities and amortized cost of HTM securities. Average yield has been computed using amortized cost average balance for AFS and HTM securities. The adjustment to the average balance for securities in the calculation of average yield for the six months ended June 30, 2025 and 2024 was $(45.3) million and $(57.2) million, respectively.
       

     

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

    Reconciliation of Non-GAAP Financial Measures

      Three Months Ended   Six Months Ended
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Calculation of merger costs, net of tax (non-GAAP):                  
    Merger costs – non deductible $ 357     $ 1,327     $ —     $ 1,684     $ —  
                       
    Merger costs – deductible   —       202       —       202       —  
    Statutory federal tax rate   21 %     21 %     21 %     21 %     21 %
    Tax benefit of merger costs (non-GAAP)   —       42       —       42       —  
    Merger costs – deductible, net of tax   —       160       —       160       —  
                       
    Merger costs, net of tax (non-GAAP) $ 357     $ 1,487     $ —     $ 1,844     $ —  
      Three Months Ended   Six Months Ended
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Calculation of net income available to common (GAAP):                  
    Net income $ 13,956   $ 11,481   $ 12,957   $ 25,437   $ 25,557
    Less: preferred stock dividends   1,075     1,075     1,075     2,150     2,150
    Net income available to common shareholders $ 12,881   $ 10,406   $ 11,882   $ 23,287   $ 23,407
                       
    Adjusted calculation of net income available to common (non-GAAP):                  
    Net income available to common shareholders $ 12,881   $ 10,406   $ 11,882   $ 23,287   $ 23,407
    Add: Merger costs, net of tax (non-GAAP)   357     1,487     —     1,844     —
    Adjusted net income available to common shareholders (non-GAAP) $ 13,238   $ 11,893   $ 11,882   $ 25,131   $ 23,407
      Three Months Ended   Six Months Ended
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Calculation of PPNR (non-GAAP):(1)                  
    Net interest income $ 52,197   $ 48,431   $ 45,717   $ 100,628   $ 90,939
    Add: Non-interest income   9,008     8,507     8,865     17,515     17,820
    Less: Non-interest expense   39,617     41,038     35,989     80,655     73,413
    PPNR (non-GAAP) $ 21,588   $ 15,900   $ 18,593   $ 37,488   $ 35,346
                       
    Adjusted calculation of PPNR (non-GAAP):(1)                  
    Net interest income $ 52,197   $ 48,431   $ 45,717   $ 100,628   $ 90,939
    Add: Non-interest income   9,008     8,507     8,865     17,515     17,820
    Less: Non-interest expense   39,617     41,038     35,989     80,655     73,413
    Add: Merger costs   357     1,529     —     1,886     —
    Adjusted PPNR (non-GAAP) $ 21,945   $ 17,429   $ 18,593   $ 39,374   $ 35,346
                       
    (1) Management believes that this is an important metric as it illustrates the underlying performance of the Corporation, it enables investors and others to assess the Corporation’s ability to generate capital to cover credit losses through the credit cycle and provides consistent reporting with a key metric used by bank regulatory agencies.
     

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

    Reconciliation of Non-GAAP Financial Measures

      Three Months Ended   Six Months Ended
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Basic earnings per common share computation:                  
    Net income available to common shareholders $ 12,881   $ 10,406   $ 11,882   $ 23,287   $ 23,407
    Less: net income available to common shareholders allocated to participating securities   120     57     101     199     192
    Net income available to common shareholders allocated to common stock $ 12,761   $ 10,349   $ 11,781   $ 23,088   $ 23,215
                       
    Weighted average common shares outstanding, including shares considered participating securities   21,053     20,981     21,005     21,018     20,992
    Less: Average participating securities   172     114     174     144     165
    Weighted average shares   20,881     20,867     20,831     20,874     20,827
    Basic earnings per common share $ 0.61   $ 0.50   $ 0.57   $ 1.11   $ 1.12
                       
    Diluted earnings per common share computation:                  
    Net income available to common shareholders allocated to common stock $ 12,761   $ 10,349   $ 11,781   $ 23,088   $ 23,215
                       
    Weighted average common shares outstanding for basic earnings per common share   20,881     20,867     20,831     20,874     20,827
    Add: Dilutive effect of stock compensation   72     58     62     65     63
    Weighted average shares and dilutive potential common shares   20,953     20,925     20,893     20,939     20,890
    Diluted earnings per common share $ 0.61   $ 0.50   $ 0.56   $ 1.10   $ 1.11
                       
    Adjusted basic earnings per common share computation (non-GAAP):                  
    Net income available to common shareholders $ 12,881   $ 10,406   $ 11,882   $ 23,287   $ 23,407
    Add: Merger costs, net of tax (non-GAAP)   357     1,487     —     1,844     —
    Less: net income available to common shareholders allocated to participating securities   120     57     101     199     192
    Less: Adjustment to net income available to common shareholders allocated to participating securities for merger cost impact, net of tax (non-GAAP)   3     8     —     12     —
    Adjusted net income available to common shareholders allocated to common stock (non-GAAP) $ 13,115   $ 11,828   $ 11,781   $ 24,920   $ 23,215
                       
    Weighted average common shares outstanding, including shares considered participating securities   21,053     20,981     21,005     21,018     20,992
    Less: Average participating securities   172     114     174     144     165
    Weighted average shares   20,881     20,867     20,831     20,874     20,827
    Adjusted basic earnings per common share (non-GAAP) $ 0.63   $ 0.57   $ 0.57   $ 1.19   $ 1.12
                       
    Adjusted diluted earnings per common share computation (non-GAAP):                  
    Adjusted net income available to common shareholders allocated to common stock (non-GAAP) $ 13,115   $ 11,828   $ 11,781   $ 24,920   $ 23,215
                       
    Weighted average common shares outstanding for basic earnings per common share   20,881     20,867     20,831     20,874     20,827
    Add: Dilutive effect of stock compensation   72     58     62     65     63
    Weighted average shares and dilutive potential common shares   20,953     20,925     20,893     20,939     20,890
    Adjusted diluted earnings per common share (non-GAAP) $ 0.63   $ 0.57   $ 0.56   $ 1.19   $ 1.11
                                 

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

    Reconciliation of Non-GAAP Financial Measures

      Three Months Ended   Six Months Ended
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Calculation of dividend payout ratio:                  
    Cash dividends per common share $ 0.180     $ 0.180     $ 0.175     $ 0.360     $ 0.350  
    Diluted earnings per common share   0.61       0.50       0.56       1.10       1.11  
    Dividend payout ratio   30 %     36 %     31 %     33 %     32 %
                       
    Adjusted calculation of dividend payout ratio (non-GAAP):                  
    Cash dividends per common share $ 0.180     $ 0.180     $ 0.175     $ 0.360     $ 0.350  
    Adjusted diluted earnings per common share (non-GAAP)   0.63       0.57       0.56       1.19       1.11  
    Adjusted dividend payout ratio (non-GAAP)   29 %     32 %     31 %     30 %     32 %
      Three Months Ended   Six Months Ended
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Calculation of net interest margin:                  
    Interest income $ 85,771     $ 82,379     $ 80,652     $ 168,150     $ 158,557  
    Interest expense   33,574       33,948       34,935       67,522       67,618  
    Net interest income $ 52,197     $ 48,431     $ 45,717     $ 100,628     $ 90,939  
                       
    Average total earning assets $ 5,817,121     $ 5,803,526     $ 5,465,645     $ 5,810,364     $ 5,407,954  
                       
    Net interest margin (GAAP) (annualized)   3.60 %     3.38 %     3.36 %     3.49 %     3.38 %
                       
    Calculation of net interest margin (fully tax equivalent basis) (non-GAAP):                  
    Interest income $ 85,771     $ 82,379     $ 80,652     $ 168,150     $ 158,557  
    Tax equivalent adjustment (non-GAAP)   265       260       214       525       431  
    Adjusted interest income (fully tax equivalent basis) (non-GAAP)   86,036       82,639       80,866       168,675       158,988  
    Interest expense   33,574       33,948       34,935       67,522       67,618  
    Net interest income (fully tax equivalent basis) (non-GAAP) $ 52,462     $ 48,691     $ 45,931     $ 101,153     $ 91,370  
                       
    Average total earning assets $ 5,817,121     $ 5,803,526     $ 5,465,645     $ 5,810,364     $ 5,407,954  
    Less: average mark to market adjustment on investments (non-GAAP)   (42,592 )     (48,070 )     (59,225 )     (45,317 )     (57,186 )
    Adjusted average total earning assets, net of mark to market (non-GAAP) $ 5,859,713     $ 5,851,596     $ 5,524,870     $ 5,855,681     $ 5,465,140  
                       
    Net interest margin, fully tax equivalent basis (non-GAAP) (annualized)   3.59 %     3.37 %     3.34 %     3.48 %     3.36 %
                                           

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

    Reconciliation of Non-GAAP Financial Measures

      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024
    Calculation of tangible book value per common share and tangible common
    equity / tangible assets (non-GAAP):    		          
    Shareholders’ equity $ 637,281     $ 624,508     $ 586,700  
    Less: preferred equity   57,785       57,785       57,785  
    Common shareholders’ equity   579,496       566,723       528,915  
    Less: goodwill and other intangibles   43,874       43,874       43,874  
    Less: core deposit intangible   173       190       241  
    Tangible common equity (non-GAAP) $ 535,449     $ 522,659     $ 484,800  
               
    Total assets $ 6,318,477     $ 6,295,508     $ 5,886,571  
    Less: goodwill and other intangibles   43,874       43,874       43,874  
    Less: core deposit intangible   173       190       241  
    Tangible assets (non-GAAP) $ 6,274,430     $ 6,251,444     $ 5,842,456  
               
    Ending shares outstanding   21,119,894       20,980,245       20,998,117  
               
    Book value per common share (GAAP) $ 27.44     $ 27.01     $ 25.19  
    Tangible book value per common share (non-GAAP) $ 25.35     $ 24.91     $ 23.09  
               
    Common shareholders’ equity / Total assets (GAAP)   9.17 %     9.00 %     8.99 %
    Tangible common equity / Tangible assets (non-GAAP)   8.53 %     8.36 %     8.30 %
               
    Adjusted calculation of book value per common share (non-GAAP):          
    Common shareholders’ equity $ 579,496     $ 566,723     $ 528,915  
    Add: Merger costs, net of tax (non-GAAP)   1,844       1,487       —  
    Adjusted common shareholders’ equity (non-GAAP) $ 581,340     $ 568,210     $ 528,915  
               
    Ending shares outstanding   21,119,894       20,980,245       20,998,117  
               
    Adjusted book value per common share (non-GAAP) $ 27.53     $ 27.08     $ 25.19  
               
    Adjusted calculation of tangible book value per common share (non-GAAP):          
    Tangible common equity (non-GAAP) $ 535,449     $ 522,659     $ 484,800  
    Add: Merger costs, net of tax (non-GAAP)   1,844       1,487       —  
    Adjusted tangible common equity (non-GAAP) $ 537,293     $ 524,146     $ 484,800  
               
    Ending shares outstanding   21,119,894       20,980,245       20,998,117  
               
    Adjusted tangible book value per common share (non-GAAP) $ 25.44     $ 24.98     $ 23.09  
               
    Adjusted calculation of tangible common equity / tangible assets (non-GAAP):          
    Adjusted common shareholders’ equity (non-GAAP) $ 537,293     $ 524,146     $ 484,800  
               
    Tangible assets (non-GAAP) $ 6,274,430     $ 6,251,444     $ 5,842,456  
    Add: Merger costs (non-GAAP)   1,886       1,529       —  
    Adjusted tangible assets (non-GAAP) $ 6,276,316     $ 6,252,973     $ 5,842,456  
               
    Adjusted tangible common equity / Adjusted tangible assets (non-GAAP)   8.56 %     8.38 %     8.30 %
     

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

    Reconciliation of Non-GAAP Financial Measures

      Three Months Ended   Six Months Ended
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Calculation of efficiency ratio:                  
    Non-interest expense $ 39,617     $ 41,038     $ 35,989     $ 80,655     $ 73,413  
                       
    Non-interest income $ 9,008     $ 8,507     $ 8,865     $ 17,515     $ 17,820  
    Net interest income   52,197       48,431       45,717       100,628       90,939  
    Total revenue $ 61,205     $ 56,938     $ 54,582     $ 118,143     $ 108,759  
    Efficiency ratio   64.73 %     72.07 %     65.94 %     68.27 %     67.50 %
                       
    Calculation of efficiency ratio (fully tax equivalent basis) (non-GAAP):                  
    Non-interest expense $ 39,617     $ 41,038     $ 35,989     $ 80,655     $ 73,413  
    Less: core deposit intangible amortization   16       17       19       33       39  
    Adjusted non-interest expense (non-GAAP) $ 39,601     $ 41,021     $ 35,970     $ 80,622     $ 73,374  
                       
    Non-interest income $ 9,008     $ 8,507     $ 8,865     $ 17,515     $ 17,820  
                       
    Net interest income $ 52,197     $ 48,431     $ 45,717     $ 100,628     $ 90,939  
    Less: tax exempt investment and loan income, net of TEFRA (non-GAAP)   1,451       1,464       1,318       2,915       2,655  
    Add: tax exempt investment and loan income (fully tax equivalent basis) (non-GAAP)   2,046       2,076       1,902       4,122       3,834  
    Adjusted net interest income (fully tax equivalent basis) (non-GAAP)   52,792       49,043       46,301       101,835       92,118  
    Adjusted net revenue (fully tax equivalent basis) (non-GAAP) $ 61,800     $ 57,550     $ 55,166     $ 119,350     $ 109,938  
                       
    Efficiency ratio (fully tax equivalent basis) (non-GAAP)   64.08 %     71.28 %     65.20 %     67.55 %     66.74 %
                       
    Adjusted calculation of efficiency ratio (fully tax equivalent basis) (non-GAAP):                  
    Adjusted non-interest expense (non-GAAP) $ 39,601     $ 41,021     $ 35,970     $ 80,622     $ 73,374  
    Less: Merger costs (non-GAAP)   357       1,529       —       1,886       —  
    Adjusted non-interest expense (non-GAAP) $ 39,244     $ 39,492     $ 35,970     $ 78,736     $ 73,374  
                       
    Adjusted net revenue (fully tax equivalent basis) (non-GAAP) $ 61,800     $ 57,550     $ 55,166     $ 119,350     $ 109,938  
                       
    Adjusted efficiency ratio (fully tax equivalent basis) (non-GAAP)   63.50 %     68.62 %     65.20 %     65.97 %     66.74 %
                                           

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

    Reconciliation of Non-GAAP Financial Measures

      Three Months Ended   Six Months Ended
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Calculation of return on average assets:                  
    Net income $ 13,956     $ 11,481     $ 12,957     $ 25,437     $ 25,557  
    Average total assets $ 6,235,036     $ 6,220,575     $ 5,854,978     $ 6,227,901     $ 5,792,485  
                       
    Return on average assets (GAAP) (annualized)   0.90 %     0.75 %     0.89 %     0.82 %     0.89 %
                       
    Adjusted calculation of return on average assets (non-GAAP):                  
    Net income $ 13,956     $ 11,481     $ 12,957     $ 25,437     $ 25,557  
    Add: Merger costs, net of tax (non-GAAP)   357       1,487       —       1,844       —  
    Adjusted net income $ 14,313     $ 12,968     $ 12,957     $ 27,281     $ 25,557  
    Average total assets $ 6,235,036     $ 6,220,575     $ 5,854,978     $ 6,227,901     $ 5,792,485  
                       
    Adjusted return on average assets (non-GAAP) (annualized)   0.92 %     0.85 %     0.89 %     0.88 %     0.89 %
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024
    Calculation of total deposits          
    Total deposits $ 5,467,082   $ 5,460,078   $ 5,110,845
               
    Adjusted calculation of total deposits (non-GAAP):          
    Total deposits $ 5,467,082   $ 5,460,078   $ 5,110,845
    Add: High cost municipal deposits   77,690     —     —
    Adjusted total deposits (non-GAAP) $ 5,544,772   $ 5,460,078   $ 5,110,845
     

    CNB FINANCIAL CORPORATION
    CONSOLIDATED FINANCIAL DATA
    Unaudited
    (dollars in thousands, except per share data)

    Reconciliation of Non-GAAP Financial Measures

      Three Months Ended   Six Months Ended
      June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   June 30,
    2025    		   June 30,
    2024
    Calculation of return on average tangible common equity (non-GAAP):                  
    Net income $ 13,956     $ 11,481     $ 12,957     $ 25,437     $ 25,557  
    Less: preferred stock dividends   1,075       1,075       1,075       2,150       2,150  
    Net income available to common shareholders $ 12,881     $ 10,406     $ 11,882     $ 23,287     $ 23,407  
                       
    Average shareholders’ equity $ 633,848     $ 619,409     $ 583,221     $ 626,739     $ 579,991  
    Less: average goodwill & intangibles   44,058       44,074       44,127       44,066       44,137  
    Less: average preferred equity   57,785       57,785       57,785       57,785       57,785  
    Average tangible common shareholders’ equity (non-GAAP) $ 532,005     $ 517,550     $ 481,309     $ 524,888     $ 478,069  
                       
    Return on average equity (GAAP) (annualized)   8.83 %     7.52 %     8.94 %     8.18 %     8.86 %
    Return on average common equity (GAAP) (annualized)   8.97 %     7.51 %     9.10 %     8.25 %     9.01 %
    Return on average tangible common equity (non-GAAP) (annualized)   9.71 %     8.15 %     9.93 %     8.95 %     9.85 %
                       
    Adjusted calculation of return on average equity (non-GAAP):                  
    Net income $ 13,956     $ 11,481     $ 12,957     $ 25,437     $ 25,557  
    Add: Merger costs, net of tax (non-GAAP)   357       1,487       —       1,844       —  
    Adjusted net income (non-GAAP) $ 14,313     $ 12,968     $ 12,957     $ 27,281     $ 25,557  
                       
    Average shareholders’ equity $ 633,848     $ 619,409     $ 583,221     $ 626,739     $ 579,991  
                       
    Adjusted return on average equity (non-GAAP) (annualized)   9.06 %     8.49 %     8.94 %     8.78 %     8.86 %
                       
    Adjusted calculation of return on average tangible common equity (non-GAAP):                  
    Net income available to common shareholders $ 12,881     $ 10,406     $ 11,882     $ 23,287     $ 23,407  
    Add: Merger costs, net of tax (non-GAAP)   357       1,487       —       1,844       —  
    Adjusted net income available to common shareholders $ 13,238     $ 11,893     $ 11,882     $ 25,131     $ 23,407  
                       
    Average tangible common shareholders’ equity (non-GAAP) $ 532,005     $ 517,550     $ 481,309     $ 524,888     $ 478,069  
                       
    Adjusted return on average tangible common equity (non-GAAP) (annualized)   9.98 %     9.32 %     9.93 %     9.66 %     9.85 %

    The MIL Network –

  • MIL-OSI USA: Crapo Statement at Executive Session to Consider USTR, Treasury Nominations

    US Senate News:

    Source: United States Senator for Idaho Mike Crapo

    Washington, D.C.—U.S. Senate Finance Committee Chairman Mike Crapo (R-Idaho) delivered the following remarks at an executive session to consider the nominations of Joseph Barloon to be a Deputy United States Trade Representative (USTR) and Brian Morrissey, Jr. to be General Counsel for the Department of the Treasury.
    As prepared for delivery:
    “We meet today to consider favorably reporting the nominations of Joe Barloon, who is nominated to serve as Deputy USTR and Ambassador to the World Trade Organization (WTO) and Brian Morrissey, who is nominated to serve as the General Counsel of the Treasury Department.
    “The meeting this morning will provide members with the opportunity to make remarks on the nominees. Following statements, we will recess briefly then proceed to our nominations hearing this morning. Later today, we will notify members of the time and location of the vote on Mr. Barloon and Mr. Morrissey.
    “During his hearing, Mr. Barloon discussed his plan to work in good faith with WTO Members to advance the interests of the United States. Importantly, based on his prior tenure as General Counsel to the U.S. Trade Representative, Mr. Barloon understands the critical role the WTO plays in ensuring market access for our farmers and businesses of all types. If confirmed, Mr. Barloon will work to restore U.S. leadership at the WTO.
    “Building on prior Treasury Department experience, Mr. Morrissey is well-suited to provide critical legal and policy advice to the Secretary and other senior Department officials. He is exceptionally qualified for the position, and his nomination received bipartisan support from Treasury General Counsels dating back to 1977. I was encouraged to hear that he will prioritize a close working relationship with Congress to ensure that the Department effectively implements all laws Congress sends to it.
    “I will vote in favor of both nominations and I encourage all of my colleagues on the Committee to do the same.”
     

    MIL OSI USA News –

  • MIL-OSI USA: Finance Committee Advances USTR, Treasury Nominations

    US Senate News:

    Source: United States Senator for Idaho Mike Crapo

    Washington, D.C.–The U.S. Senate Finance Committee today advanced the nominations of Joseph Barloon to be a Deputy United States Trade Representative (USTR) and Brian Morrissey, Jr., to be General Counsel for the Department of the Treasury, each by a vote of 14-13. Following the vote, Chairman Mike Crapo (R-Idaho) issued the statement below:
    “Each of the nominees advanced by the Committee today will bring vital experience to their respective roles. Mr. Barloon will work to advance the Unites States’ trade interests at the World Trade Organization as the Administration reestablishes U.S. leadership and will be an incredible advocate for American businesses and farmers. Mr. Morrissey is well-suited to provide critical legal and policy advice to the Secretary and other Treasury officials, and has made it clear he will work closely with Congress to ensure the Department effectively implements all laws. I look forward to each nominee’s confirmation by the full Senate.”
    Executive session information can be found here.
    Read Chairman Crapo’s full statement at the nomination hearing here, and his statement at the executive session here.
     

    MIL OSI USA News –

  • MIL-OSI USA News: Joint Statement on Framework for United States-Indonesia Agreement on Reciprocal Trade

    Source: US Whitehouse

    Today, the United States of America (the United States) and the Republic of Indonesia (Indonesia) agreed to a Framework for negotiating an Agreement on Reciprocal Trade to strengthen our bilateral economic relationship, which will provide both countries’ exporters unprecedented access to each other’s markets.  The Agreement on Reciprocal Trade will build upon our longstanding economic relationship, including the U.S.-Indonesia Trade and Investment Framework Agreement, signed on July 16, 1996.

    Key terms of the Agreement on Reciprocal Trade between the United States and Indonesia will include:

    • Indonesia will eliminate approximately 99 percent of tariff barriers for a full range of U.S. industrial and U.S. food and agricultural products exported to Indonesia.
    • The United States will reduce to 19 percent the reciprocal tariffs, as set forth in Executive Order 14257 of April 2, 2025, on originating goods of Indonesia, and may also identify certain commodities that are not naturally available or domestically produced in the United States for a further reduction in the reciprocal tariff rate.
    • The United States and Indonesia will negotiate facilitative rules of origin that ensure that the benefits of the agreement accrue primarily to the United States and Indonesia.
    • The United States and Indonesia will work together to address Indonesia’s non-tariff barriers that affect bilateral trade and investment in priority areas, including exempting U.S. companies and originating goods from local content requirements; accepting vehicles built to U.S. federal motor vehicle safety and emissions standards; accepting FDA certificates and prior marketing authorizations for medical devices and pharmaceuticals; removing certain labeling requirements; exempting U.S. exports of cosmetics, medical devices, and other manufactured goods from certain requirements; taking steps to resolve many long-standing intellectual property issues identified in USTR’s Special 301 Report; and addressing U.S. concerns with conformity assessment procedures.  Indonesia will work to address barriers for U.S. exports, including through the removal of import restrictions or licensing requirements on U.S. remanufactured goods or their parts; the elimination of pre-shipment inspection or verification requirements on imports of U.S. goods; and the adoption and implementation of good regulatory practices.
    • The United States and Indonesia have also committed to address and prevent barriers to U.S. food and agricultural products in the Indonesian market, including exempting U.S. food and agricultural products from all import licensing regimes, including commodity balance requirements; ensuring transparency and fairness with respect to geographical indications; providing permanent Fresh Food of Plant Origin (FFPO) designation for all applicable U.S. plant products; and recognizing U.S. regulatory oversight, including listing of all U.S. meat, poultry, and dairy facilities and accepting certificates issued by U.S. regulatory authorities. 
    • Indonesia has committed to address barriers impacting digital trade, services, and investment.  Indonesia will provide certainty regarding the ability to transfer personal data out of its territory to the United States.  Indonesia has committed to eliminate existing HTS tariff lines on “intangible products” and suspend related requirements on import declarations; to support a permanent moratorium on customs duties on electronic transmissions at the WTO immediately and without conditions; and to take effective actions to implement the Joint Initiative on Services Domestic Regulation, including submitting its revised Specific Commitments for certification by the World Trade Organization (WTO).
    • Indonesia commits to join the Global Forum on Steel Excess Capacity and take effective actions to address global excess capacity in the steel sector and its impacts.
    • Indonesia commits to protecting internationally recognized labor rights.  Indonesia will, among other commitments, adopt and implement a prohibition on the importation of goods produced by forced or compulsory labor; amend its labor laws to ensure that workers’ rights to freedom of association and collective bargaining are fully protected; and strengthen enforcement of its labor laws.
    • Indonesia commits to adopt and maintain high levels of environmental protection and to effectively enforce its environmental laws, including by taking measures to improve forest sector governance and combat trade in illegally harvested forest products; encourage a more resource efficient economy; accept and fully implement the WTO Agreement on Fisheries Subsidies; and combat illegal, unreported, and unregulated fishing and illegal wildlife trade.
    • Indonesia will remove restrictions on exports to the United States of industrial commodities, including critical minerals.
    • The United States and Indonesia are committed to strengthening economic and national security cooperation to enhance supply chain resilience and innovation through complementary actions to address unfair trade practices of other countries, and through cooperation on export controls, investment security, and combatting duty evasion.
    • In addition, the United States and Indonesia take note of the following forthcoming commercial deals between U.S. and Indonesian companies:
      • Procurement of aircraft currently valued at 3.2 billion USD.
      • Purchase of agriculture products, including soybeans, soybeans meal, wheat, and cotton with an estimated total value of 4.5 billion USD.
      • Purchases of energy products, including liquefied petroleum gas, crude oil, and gasoline, with an estimated value of 15 billion USD.

    In the coming weeks, the United States and Indonesia will negotiate and finalize the Agreement on Reciprocal Trade, prepare the Agreement for signature, and undertake domestic formalities in advance of the Agreement entering into force.  

    MIL OSI USA News –

  • MIL-OSI USA News: Fact Sheet: The United States and Indonesia Reach Historic Trade Deal

    Source: US Whitehouse

    DELIVERING ON RECIPROCAL TRADE: President Donald J. Trump announced a landmark trade deal with Indonesia that will provide Americans with market access in Indonesia once considered impossible and unlock major breakthroughs for America’s manufacturing, agriculture, and digital sectors.

    • Under this deal, Indonesia will pay the United States a reciprocal tariff rate of 19%.
    • The key terms of the U.S.-Indonesia Agreement on Reciprocal Trade will include:
      • Eliminating Tariff Barriers: Indonesia will eliminate tariff barriers, on a preferential basis, on over 99% of U.S. products exported to Indonesia across all sectors, including for all agricultural products, health products, seafood, information and communications technology, automotive products, and chemicals, which will create commercially meaningful market access opportunities for the full range of U.S. exports, supporting high-quality American jobs.
      • Breaking Down Non-Tariff Barriers for U.S. Industrial Exports: Indonesia will address a range of non-tariff barriers, including by: (1) exempting U.S. companies and originating goods from local content requirements; (2) accepting vehicles built to U.S. federal motor vehicle safety and emissions standards; (3) accepting FDA certificates and prior marketing authorizations for medical devices and pharmaceuticals; (4) exempting U.S. exports of cosmetics, medical devices, and other manufactured goods from burdensome certification and labeling requirements; (5) removing import restrictions or licensing requirements on U.S. remanufactured goods and their parts; (6) eliminating pre-shipment inspection or verification requirements on imports of U.S. goods; (7) adopting and implementing good regulatory practices; (8) taking steps to resolve many long-standing intellectual property issues identified in USTR’s Special 301 Report; and (9) addressing U.S. concerns with conformity assessment procedures.
      • Breaking Down Non-Tariff Barriers for U.S. Agriculture Exports: Indonesia will address and prevent barriers to U.S. agricultural products in the Indonesian market, including by: (1) exempting U.S. food and agricultural products from all of Indonesia’s import licensing regimes including its commodity balance policy; (2) ensuring transparency and fairness with respect to geographical indications (GIs) including meats and cheeses; (3) providing permanent Fresh Food of Plant Origin (FFPO) designation for all applicable U.S. plant products; and (4) recognizing U.S. regulatory oversight, including listing of all U.S. meat, poultry, and dairy facilities and accepting certificates issued by U.S. regulatory authorities.
      • Strengthening Rules of Origin: The United States and Indonesia will negotiate facilitative rules of origin that ensure that the benefits from the agreement accrue to the United States and Indonesia, not third-countries.
      • Removing Barriers for Digital Trade: The United States and Indonesia will finalize commitments on digital trade, services, and investment. Indonesia has committed to eliminate existing HTS tariff lines on “intangible products” and suspend related requirements on import declarations; support a permanent moratorium on customs duties on electronic transmissions at the World Trade Organization (WTO) immediately and without conditions; and take effective actions to implement the Joint Initiative on Services Domestic Regulation, including submitting its revised Specific Commitments for certification by the WTO. Indonesia will provide certainty regarding the ability to move personal data out of its territory to the United States through recognition of the United States as a country or jurisdiction that provides adequate data protection under Indonesia’s law. American companies have sought these reforms for years.
      • Aligning on Economic Security: Indonesia has committed to join the Global Forum on Steel Excess Capacity and take effective actions to address global excess capacity in the steel sector and its impacts. The United States and Indonesia are committed to strengthening cooperation to increase supply chain resilience. This includes addressing duty evasion and cooperating on export controls and investment security. Indonesia will remove restrictions on exports to the United States for all industrial commodities, including critical minerals.
      • Improving Labor Standards: Indonesia has committed to adopt and implement a forced labor import ban and remove provisions that restrict workers and unions from exercising freedom of association and collective bargaining rights.
      • Notching Commercial Deals: The United States and Indonesia take note of commercial deals in the areas of agriculture, aerospace, and energy, which will further increase U.S. exports to Indonesia.
    • President Trump has delivered a forward-looking and tough trade deal that will benefit American workers, exporters, farmers, and digital innovators—this deal is what winning looks and will feel like for all Americans.

    A DEFINED PATH FORWARD: In the coming weeks, the United States and Indonesia will memorialize the Agreement on Reciprocal Trade in order to lock in benefits for American businesses and workers.

    • The United States currently runs its fifteenth largest goods trade deficit with Indonesia.
      • The U.S. total goods trade deficit with Indonesia was $17.9 billion in 2024.
      • Before this deal, Indonesia’s simple average applied tariff was 8% while the U.S. average applied tariff was 3.3%. 

    LIBERATING AMERICA FROM UNFAIR TRADE PRACTICES: Since Day One, President Trump challenged the assumption that American workers and businesses must tolerate unfair trade practices that have disadvantaged them for decades and contributed to our historic trade deficit.

    • On April 2, President Trump declared a national emergency in response to the large and persistent U.S. goods trade deficit caused by a lack of reciprocity in our bilateral trade relationships, unfair tariff and non-tariff barriers, and U.S. trading partners’ economic policies that suppress domestic wages and consumption.
    • President Trump continues to advance the economic and national security interests of the American people by removing tariff and non-tariff barriers and expanding market access for American exporters.
    • Today’s announcement shows that America can defend its domestic production and strengthen its defense industrial base while obtaining expansive market access with our trading partners.

    MIL OSI USA News –

  • MIL-OSI: Vantage Drilling International Ltd. – Extension of Conditional Letter of Award

    Source: GlobeNewswire (MIL-OSI)

    Dubai, July 22, 2025 (GLOBE NEWSWIRE) — Vantage Drilling International Ltd. (the “Company“) announces that the 90 day validity period of the Conditional Letter of Award received for the Platinum Explorer on 23 April 2025 has been extended by a further 30 days.  All other terms and conditions remain unchanged.

    This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act. The information was submitted for publication by Alaric Harrell, Chief Accounting Officer of the Company on the date and time as set out above.

    About the Company

    Vantage Drilling International Ltd., a Bermuda exempted company, is an offshore drilling contractor. Vantage Drilling’s primary business is to contract drilling units, related equipment and work crews primarily on a dayrate basis to drill oil and natural gas wells globally for major, national and independent oil and gas companies. Vantage Drilling also markets, operates and provides management services in respect of drilling units owned by others. For more information about the Company, please refer to the Company’s website, www.vantagedrilling.com

    Attachment

    The MIL Network –

  • MIL-OSI Canada: Saskatchewan, Manitoba and Arctic Gateway Group to Establish Northern Trade Corridor

    Source: Government of Canada regional news

    Released on July 22, 2025

    The Agreement will Strengthen and Expand Market Access Across the Globe

    Today, Saskatchewan Premier Scott Moe, Manitoba Premier Wab Kinew, and Arctic Gateway Group (AGG) signed a Memorandum of Understanding (MOU) to strengthen trade through the Port of Churchill.

    “Saskatchewan remains committed to strengthening trade across Canada by supporting and developing new transportation corridors,” Moe said. “Streamlining access to ports, such as Churchill will allow our goods better access to new and emerging international markets. Today’s MOU between Saskatchewan and Manitoba is another way we are building on that progress and creating new opportunities for our industries.”

    This agreement seeks to strengthen supply chains, bolster regional economies, reduce costs and emissions, enhance market access and foster sustainable growth.

    “Churchill presents huge opportunities when it comes to mining, agriculture and energy,” Kinew said. “Through this agreement with AGG and Saskatchewan, we are going to unlock new opportunities for businesses in Manitoba and Saskatchewan to get their goods to market.”

    Part of this MOU includes connecting producers, processors, industries, and exporters in Saskatchewan and Manitoba to the Arctic Trade Corridor. It also prioritizes efforts to secure federal infrastructure funding and regulatory support to improve connectivity. This will help streamline trade, ensuring efficiency and resilience in getting Saskatchewan and Manitoba goods to market.

    “Manitoba and Saskatchewan understand the strategic value of the Port of Churchill and Hudson Bay Railway, especially as Canada looks to diversify trade and become an energy superpower,” Arctic Gateway Group CEO Chris Avery said. “This joint commitment from Premiers Kinew and Moe is a clear signal that Canada’s Arctic Trade Corridor will play a major role in this country’s trade and transportation future. As an established, efficient link to world markets, with economic reconciliation built into everything we do, the Port of Churchill is actively shipping, open for business, and ready to deliver for prairie producers and Canadian exports – while returning the benefits to AGG’s Indigenous and northern ownership communities.”

    Saskatchewan is the stable and reliable supplier of food, fuel, fertilizer, and critical minerals the world needs to ensure food and energy security. The Government of Saskatchewan supports initiatives that promote national infrastructure such as the development of corridors and gateways. This increased focus on a northern trade corridor will build opportunities, create jobs and ensure economic prosperity now and into the future.

    -30-

    For more information, contact:

    MIL OSI Canada News –

  • MIL-OSI Economics: Argentina accepts Agreement on Fisheries Subsidies, five remaining for entry into force

    Source: WTO

    Headline: Argentina accepts Agreement on Fisheries Subsidies, five remaining for entry into force

    DG Okonjo-Iweala said: “I warmly welcome Argentina’s formal acceptance of the WTO Agreement on Fisheries Subsidies. As one of the world’s leading fishing nations and exporters, Argentina’s commitment underscores this Agreement’s importance for protecting marine ecosystems and promoting responsible practices for people’s livelihoods and food security. This milestone brings us closer to the shared goal of curbing harmful fisheries subsidies worldwide: we are only five ratifications away from the Agreement entering into force.”
    Ambassador Lunazzi said: “Today, with the deposit of the instrument of ratification of the Agreement on Fisheries Subsidies, the Argentine Republic is taking an important step. This firm commitment to fairer and freer trade not only strengthens our economy, but also protects the marine resources in the South Atlantic, preserving them for future generations. We look forward to the rapid entry into force of this Agreement, which reflects the collaborative spirit of WTO members and their commitment to the founding principles of the Organization.”
    Formal acceptances from two-thirds of WTO members are required for the Agreement to enter into force — representing 111 members. The list of the 106 WTO members which have deposited their instruments of acceptance with the WTO is available here.
    At the WTO’s 12th Ministerial Conference (MC12) held in Geneva in June 2022, ministers adopted by consensus the Agreement on Fisheries Subsidies, setting new, binding, multilateral rules to curb harmful fisheries subsidies. The Agreement prohibits subsidies for illegal, unreported and unregulated fishing, for fishing overfished stocks, and for fishing on the unregulated high seas.
    Ministers also recognized the needs of developing economies and least-developed countries by establishing a fund to provide technical assistance and capacity-building to help governments that have formally accepted the Agreement to implement the new obligations.
    The Fish Fund launched a Call for Proposals on 6 June, inviting developing economies and LDCs that have ratified the Agreement to submit requests for project grants aimed at helping them implement the Agreement. The WTO Fish Fund portal can be found here.
    WTO members also agreed at MC12 to continue negotiating on remaining fisheries subsidies issues. The objective is to find consensus on additional provisions to further strengthen the disciplines on fisheries subsidies.
    Information for members on how to accept the Protocol of Amendment is available here.

    Share

    MIL OSI Economics –

  • MIL-OSI Economics: Argentina accepts Agreement on Fisheries Subsidies, five remaining for entry into force

    Source: WTO

    Headline: Argentina accepts Agreement on Fisheries Subsidies, five remaining for entry into force

    DG Okonjo-Iweala said: “I warmly welcome Argentina’s formal acceptance of the WTO Agreement on Fisheries Subsidies. As one of the world’s leading fishing nations and exporters, Argentina’s commitment underscores this Agreement’s importance for protecting marine ecosystems and promoting responsible practices for people’s livelihoods and food security. This milestone brings us closer to the shared goal of curbing harmful fisheries subsidies worldwide: we are only five ratifications away from the Agreement entering into force.”
    Ambassador Lunazzi said: “Today, with the deposit of the instrument of ratification of the Agreement on Fisheries Subsidies, the Argentine Republic is taking an important step. This firm commitment to fairer and freer trade not only strengthens our economy, but also protects the marine resources in the South Atlantic, preserving them for future generations. We look forward to the rapid entry into force of this Agreement, which reflects the collaborative spirit of WTO members and their commitment to the founding principles of the Organization.”
    Formal acceptances from two-thirds of WTO members are required for the Agreement to enter into force — representing 111 members. The list of the 106 WTO members which have deposited their instruments of acceptance with the WTO is available here.
    At the WTO’s 12th Ministerial Conference (MC12) held in Geneva in June 2022, ministers adopted by consensus the Agreement on Fisheries Subsidies, setting new, binding, multilateral rules to curb harmful fisheries subsidies. The Agreement prohibits subsidies for illegal, unreported and unregulated fishing, for fishing overfished stocks, and for fishing on the unregulated high seas.
    Ministers also recognized the needs of developing economies and least-developed countries by establishing a fund to provide technical assistance and capacity-building to help governments that have formally accepted the Agreement to implement the new obligations.
    The Fish Fund launched a Call for Proposals on 6 June, inviting developing economies and LDCs that have ratified the Agreement to submit requests for project grants aimed at helping them implement the Agreement. The WTO Fish Fund portal can be found here.
    WTO members also agreed at MC12 to continue negotiating on remaining fisheries subsidies issues. The objective is to find consensus on additional provisions to further strengthen the disciplines on fisheries subsidies.
    Information for members on how to accept the Protocol of Amendment is available here.

    Share

    MIL OSI Economics –

  • MIL-OSI USA: Budd Joins Young, Colleagues to Urge End to Foreign Free-Riding Burdening American Patients & Calls for IP Negotiator Appointment

    US Senate News:

    Source: United States Senator Ted Budd (R-North Carolina)

    Washington, D.C. — U.S. Senator Ted Budd (R-N.C.) joined Senator Todd Young (R-Ind.), and several of his Senate Republicans colleagues, in sending a letter to U.S. Trade Representative Jamieson Greer and Secretary of Commerce Howard Lutnick urging the Trump Administration to use ongoing trade negotiations to eliminate foreign price controls that leave American patients footing the cost for pharmaceutical research and development.

    “We welcome President Trump’s efforts to ensure foreign nations pay their fair share toward the cost of pharmaceutical research and development. For too long, some developed nations have benefited from American-financed innovation by implementing policies that suppress prices and limit spending on new medicines in their own markets,” wrote the senators. “These actions have contributed to American patients bearing a disproportionate share of global pharmaceutical innovation costs. U.S. trade negotiations offer a valuable mechanism to address these unfair practices, which not only burden Americans, but also function as non-tariff barriers to trade.”

    The letter also urges the Administration to designate a senior political official within the Office of the U.S. Trade Representative to lead trade discussions on pharmaceutical pricing in the near term, and to promptly nominate a qualified individual to fill the long-vacant Chief Innovation and Intellectual Property Negotiator role, who would ultimately assume leadership of this effort. Created by Congress in 2015, the position was intended to “address acts, policies, and practices of foreign governments that have a significant adverse impact on the value of United States innovation.”

    “Appointing an experienced Chief Innovation and Intellectual Property Negotiator would send a strong signal to our trading partners that the United States is committed to addressing imbalanced pharmaceutical pricing and ensuring that any commitments secured are effectively implemented and enforced over the long term,” the senators wrote.

    U.S. Senators Thom Tillis (R-N.C.), Tim Scott (R-S.C.), Roger Marshall (R-Kan.), Bill Cassidy (R-La.), Steve Daines (R-Mont.), Cynthia Lummis (R-Wyo.), Ashley Moody (R-Fla.), Chuck Grassley (R-Iowa), Tommy Tuberville (R-Ala.), Roger Wicker (R-Miss.), John Boozman (R-Ark.), Jim Banks (R-Ind.), Jon Husted (R-Ohio), Cindy Hyde-Smith (R-Miss.), Tim Sheehy (R-Mont.), and Lindsey Graham (R-S.C.) also joined in signing the letter.

    Read the full letter text HERE and below:

    Dear Secretary Lutnick and Ambassador Greer,

    We welcome President Trump’s efforts to ensure foreign nations pay their fair share toward the cost of pharmaceutical research and development. For too long, some developed nations have benefited from American-financed innovation by implementing policies that suppress prices and limit spending on new medicines in their own markets. These actions have contributed to American patients bearing a disproportionate share of global pharmaceutical innovation costs. U.S. trade negotiations offer a valuable mechanism to address these unfair practices, which not only burden Americans, but also function as non-tariff barriers to trade.

    Executive Order 14297, issued on May 12, directed the U.S. Department of Commerce (Commerce) and the U.S. Trade Representative (USTR) to pursue the removal of policies and practices abroad that have “the effect of forcing American patients to pay for a disproportionate amount of global pharmaceutical research and development, including by suppressing the price of pharmaceutical products below fair market value in foreign countries.” Consistent with this directive, it is important that Commerce and USTR engage with U.S. trading partners to negotiate binding commitments to remove these market-distorting price controls.

    Currently, dozens of countries—including those with longstanding pricing policies affecting U.S. pharmaceutical products—have expressed interest or are currently undergoing tariff negotiations. Now is the time for Commerce and USTR to clarify top priorities, capitalize on opportunities, and resolve unfair foreign government policies in support of American workers and patients.

    Given the complexity of the issues and their importance to the American public, we urge the Administration to immediately designate a senior political official at USTR to lead the effort to secure and enforce pharmaceutical pricing commitments through trade negotiations and also to promptly nominate a qualified individual to fill the vacant position of Chief Innovation and Intellectual Property Negotiator. Congress created this important position in 2015 to “address acts, policies, and practices of foreign governments that have a significant adverse impact on the value of United States innovation.” Once filled, we recommend this role—supported by a team within USTR—be charged with leading this effort.

    Appointing an experienced Chief Innovation and Intellectual Property Negotiator would send a strong signal to our trading partners that the United States is committed to addressing imbalanced pharmaceutical pricing and ensuring that any commitments secured are effectively implemented and enforced over the long term.

    We look forward to working with you as you confront these longstanding and unfair price controls that leave Americans disproportionately funding global health care innovation. Eliminating these egregious practices could increase investment in medical research and development by billions of dollars and lower overall health care costs for Americans. In addition, encouraging foreign governments to appropriately value medicines developed and produced in the United States would significantly bolster U.S. exports and jobs. We appreciate your continued attention to this issue and stand ready to support efforts that promote fair and sustainable trade outcomes.

    Sincerely,

    /X/

    MIL OSI USA News –

  • MIL-OSI USA: Budd Joins Young, Colleagues to Urge End to Foreign Free-Riding Burdening American Patients & Calls for IP Negotiator Appointment

    US Senate News:

    Source: United States Senator Ted Budd (R-North Carolina)

    Washington, D.C. — U.S. Senator Ted Budd (R-N.C.) joined Senator Todd Young (R-Ind.), and several of his Senate Republicans colleagues, in sending a letter to U.S. Trade Representative Jamieson Greer and Secretary of Commerce Howard Lutnick urging the Trump Administration to use ongoing trade negotiations to eliminate foreign price controls that leave American patients footing the cost for pharmaceutical research and development.

    “We welcome President Trump’s efforts to ensure foreign nations pay their fair share toward the cost of pharmaceutical research and development. For too long, some developed nations have benefited from American-financed innovation by implementing policies that suppress prices and limit spending on new medicines in their own markets,” wrote the senators. “These actions have contributed to American patients bearing a disproportionate share of global pharmaceutical innovation costs. U.S. trade negotiations offer a valuable mechanism to address these unfair practices, which not only burden Americans, but also function as non-tariff barriers to trade.”

    The letter also urges the Administration to designate a senior political official within the Office of the U.S. Trade Representative to lead trade discussions on pharmaceutical pricing in the near term, and to promptly nominate a qualified individual to fill the long-vacant Chief Innovation and Intellectual Property Negotiator role, who would ultimately assume leadership of this effort. Created by Congress in 2015, the position was intended to “address acts, policies, and practices of foreign governments that have a significant adverse impact on the value of United States innovation.”

    “Appointing an experienced Chief Innovation and Intellectual Property Negotiator would send a strong signal to our trading partners that the United States is committed to addressing imbalanced pharmaceutical pricing and ensuring that any commitments secured are effectively implemented and enforced over the long term,” the senators wrote.

    U.S. Senators Thom Tillis (R-N.C.), Tim Scott (R-S.C.), Roger Marshall (R-Kan.), Bill Cassidy (R-La.), Steve Daines (R-Mont.), Cynthia Lummis (R-Wyo.), Ashley Moody (R-Fla.), Chuck Grassley (R-Iowa), Tommy Tuberville (R-Ala.), Roger Wicker (R-Miss.), John Boozman (R-Ark.), Jim Banks (R-Ind.), Jon Husted (R-Ohio), Cindy Hyde-Smith (R-Miss.), Tim Sheehy (R-Mont.), and Lindsey Graham (R-S.C.) also joined in signing the letter.

    Read the full letter text HERE and below:

    Dear Secretary Lutnick and Ambassador Greer,

    We welcome President Trump’s efforts to ensure foreign nations pay their fair share toward the cost of pharmaceutical research and development. For too long, some developed nations have benefited from American-financed innovation by implementing policies that suppress prices and limit spending on new medicines in their own markets. These actions have contributed to American patients bearing a disproportionate share of global pharmaceutical innovation costs. U.S. trade negotiations offer a valuable mechanism to address these unfair practices, which not only burden Americans, but also function as non-tariff barriers to trade.

    Executive Order 14297, issued on May 12, directed the U.S. Department of Commerce (Commerce) and the U.S. Trade Representative (USTR) to pursue the removal of policies and practices abroad that have “the effect of forcing American patients to pay for a disproportionate amount of global pharmaceutical research and development, including by suppressing the price of pharmaceutical products below fair market value in foreign countries.” Consistent with this directive, it is important that Commerce and USTR engage with U.S. trading partners to negotiate binding commitments to remove these market-distorting price controls.

    Currently, dozens of countries—including those with longstanding pricing policies affecting U.S. pharmaceutical products—have expressed interest or are currently undergoing tariff negotiations. Now is the time for Commerce and USTR to clarify top priorities, capitalize on opportunities, and resolve unfair foreign government policies in support of American workers and patients.

    Given the complexity of the issues and their importance to the American public, we urge the Administration to immediately designate a senior political official at USTR to lead the effort to secure and enforce pharmaceutical pricing commitments through trade negotiations and also to promptly nominate a qualified individual to fill the vacant position of Chief Innovation and Intellectual Property Negotiator. Congress created this important position in 2015 to “address acts, policies, and practices of foreign governments that have a significant adverse impact on the value of United States innovation.” Once filled, we recommend this role—supported by a team within USTR—be charged with leading this effort.

    Appointing an experienced Chief Innovation and Intellectual Property Negotiator would send a strong signal to our trading partners that the United States is committed to addressing imbalanced pharmaceutical pricing and ensuring that any commitments secured are effectively implemented and enforced over the long term.

    We look forward to working with you as you confront these longstanding and unfair price controls that leave Americans disproportionately funding global health care innovation. Eliminating these egregious practices could increase investment in medical research and development by billions of dollars and lower overall health care costs for Americans. In addition, encouraging foreign governments to appropriately value medicines developed and produced in the United States would significantly bolster U.S. exports and jobs. We appreciate your continued attention to this issue and stand ready to support efforts that promote fair and sustainable trade outcomes.

    Sincerely,

    /X/

    MIL OSI USA News –

  • MIL-OSI USA: Sens. Hagerty, Tim Scott, Lummis, Moreno Release Market Structure Discussion Draft, Issue Request for Information From Stakeholders

    US Senate News:

    Source: United States Senator for Tennessee Bill Hagerty
    The discussion draft builds on the CLARITY Act, which passed the House of Representatives last week with strong bipartisan support
    WASHINGTON—Today,United States Senator Bill Hagerty (R-TN), a member of the Senate Banking Committee, joined Senators Tim Scott (R-SC), Chairman of the Senate Banking Committee, Cythia Lummis (R-WY), Chairwoman of the Senate Banking Subcommittee on Digital Assets, and Bernie Moreno (R-OH), in releasing an initial discussion draft of digital asset market structure legislation covering issues under the Banking Committee’s jurisdiction. The discussion draft builds on the CLARITY Act, which passed the House of Representatives last week with strong bipartisan support. Along with the discussion draft, the Senators are issuing a Request for Information (RFI) for stakeholders to submit feedback on the draft and on a wide range of questions.
    “For too long, outdated laws and regulatory uncertainty around digital asset market structure have hindered American innovation and left consumers without adequate protections,” said Senator Hagerty. “This discussion draft demonstrates a strong commitment to unlocking the full potential of the digital asset economy by delivering responsible legislation that reflects input from stakeholders, fosters innovation, establishes consistent guardrails, and ensures the United States remains a global leader in digital assets.”
    “My colleagues and I in the House and Senate share the same goal: to provide clear rules of the road for digital assets that protect investors, foster innovation, and keep the future of digital finance anchored in America,” said Chairman Scott. “I’m grateful for the hard work of our House counterparts to craft smart, bipartisan legislation, and I look forward to building on their work here in the Senate. Working with President Trump, we can deliver a comprehensive, bipartisan regulatory framework for digital assets.”
    “The time for regulatory uncertainty in the digital asset space has come to an end,” said Senator Lummis. “This discussion draft represents a thoughtful, balanced approach that will provide the clarity our innovators need while providing robust consumer protections. We cannot allow regulatory confusion to continue driving American innovation overseas. Market structure legislation will establish clear distinctions between digital asset securities and commodities, modernize our regulatory framework, and position the United States as the global leader in digital asset innovation.”
    “The GENIUS Act was a critical stride toward ensuring the United States is a leader in Digital Assets,” said Senator Moreno. “This draft represents the next step in putting a bipartisan regulatory framework on President Trump’s desk and I look forward to continuing our important work to encourage innovation, protect consumers, and strengthen national security and US dollar dominance.”
    The discussion draft takes important steps to:
    Define Ancillary Assets – The discussion draft clearly defines an “ancillary asset” to clarify which digital assets are not securities.
    Create Disclosure Requirements – The discussion draft creates disclosure requirements that are tailored for offers, sales, or distributions of ancillary assets.
    Promulgate New Rules – The discussion draft requires the Securities and Exchange Commission (SEC) to promulgate new rules:
    Regulation DA: To exempt certain offers or sales of ancillary assets from SEC registration, including offers of sales that do not exceed $75 million in gross proceeds per year over four years.
    Investment Contracts: To more clearly define what constitutes an investment contract.

    Modernize Securities Regulations – The discussion draft directs the SEC to tailor existing requirements to digital asset activity, so that regulations are no longer outdated, unnecessary, or unduly burdensome in light of the unique technological characteristics of digital assets.
    Prevent Illicit Finance – The discussion draft requires the creation of examination standards for digital assets and encourages private sector entities to partner with federal law enforcement, to detect and deter illicit finance.
    Promote Responsible Banking Innovation – The discussion draft ensures financial holding companies can use a digital asset or distributed ledger system to perform, provide, or deliver any activity, function, product, or service that banks are otherwise authorized by law to perform, provide, or deliver.
    Full text of the discussion draft can be found here.
    In addition to the discussion draft, the Senators are calling on stakeholders to submit their feedback on a wide range of questions around: 
    Regulatory Clarity and Tailoring
    Investor Protection
    Trading Venues and Market Infrastructure
    Custody
    Illicit Finance
    Banking
    Innovation
    Preemption
    To participate in the Request for Information (RFI), please submit your feedback to MarketStructure_RFI@banking.senate.gov.

    MIL OSI USA News –

  • MIL-OSI USA: Engineer pleads guilty to stealing trade secret technology designed for missile launch detection

    Source: US Immigration and Customs Enforcement

    LOS ANGELES — A Santa Clara County man and former engineer at a Southern California company pleaded guilty July 21 to stealing trade secret technologies developed for use by the United States government to detect nuclear missile launches, track ballistic and hypersonic missiles, and to allow U.S. fighter planes to detect and evade heat-seeking missiles.

    Chenguang Gong, 59, of San Jose, pleaded guilty to one count of theft of trade secrets. He remains free on $1.75 million bond.

    According to his plea agreement, Gong — a dual citizen of the United States and China — transferred more than 3,600 files from a Los Angeles-area research and development company where he worked — identified in court documents as the victim company — to personal storage devices during his brief tenure with the company last year.

    The files Gong transferred include blueprints for sophisticated infrared sensors designed for use in space-based systems to detect nuclear missile launches and track ballistic and hypersonic missiles, as well as blueprints for sensors designed to enable U.S. military aircraft to detect incoming heat-seeking missiles and take countermeasures, including by jamming the missiles’ infrared tracking ability. Some of these files were later found on storage devices seized from Gong’s temporary residence in Thousand Oaks.

    In January 2023, the victim company hired Gong as an application-specific integrated circuit design manager responsible for the design, development and verification of its infrared sensors. Beginning on approximately March 30, 2023, and continuing until his termination on April 26, 2023, Gong transferred thousands of files from his work laptop to three personal storage devices, including more than 1,800 files after he had accepted a job at one of the victim company’s main competitors.

    Many of the files Gong transferred contained proprietary and trade secret information related to the development and design of a readout integrated circuit that allows space-based systems to detect missile launches and track ballistic and hypersonic missiles and a readout integrated circuit that allows aircraft to track incoming threats in low visibility environments.

    Gong also transferred files containing trade secrets relating to the development of “next generation” sensors capable of detecting low observable targets while demonstrating increased survivability in space, as well as the blueprints for the mechanical assemblies used to house and cryogenically cool the victim company’s sensors. This information was among the victim company’s most important trade secrets that are worth hundreds of millions of dollars. Many of the files had been marked “[VICTIM COMPANY] PROPRIETARY,” “FOR OFFICIAL USE ONLY,” “PROPRIETARY INFORMATION,” and “EXPORT CONTROLLED.”

    Law enforcement also discovered that, between approximately 2014 and 2022, while employed at several major technology companies in the United States, Gong submitted numerous applications to ‘Talent Programs’ administered by the People’s Republic of China government. The PRC government has established these talent programs as a means to identify individuals who have expert skills, abilities, and knowledge of advanced sciences and technologies in order to access and utilize those skills and knowledge in transforming the PRC’s economy, including its military capabilities.

    In 2014, while employed at a U.S. information technology company headquartered in Dallas, Gong sent a business proposal to a contact at a high-tech research institute in China focused on both military and civilian products. In his proposal, translated from Chinese, Gong described a plan to produce high-performance analog-to-digital converters like those produced by his employer.

    In another Talent Program application from September 2020, Gong proposed to develop “low light/night vision” image sensors for use in military night vision goggles and civilian applications. Gong’s proposal included a video presentation that contained the model number of a sensor developed by an international defense, aerospace, and security company where Gong worked from 2015 to 2019.

    Gong travelled to China several times to seek Talent Program funding in order to develop sophisticated analog-to-digital converters. In his Talent Program applications, Gong underscored that the high-performance analog-to-digital converters he proposed to develop in China had military applications, explaining that they “directly determine the accuracy and range of radar systems” and that “[m]issile navigation systems also often use radar front-end systems.” In a 2019 email, translated from Chinese, Gong remarked that he “took a risk” by traveling to China to participate in the Talent Programs “because [he] worked for…an American military industry company” and thought he could “do something” to contribute to China’s “high-end military integrated circuits.”

    According to his plea agreement, the intended economic loss from Gong’s criminal conduct exceeds $3.5 million.

    United States District Judge John F. Walter scheduled a September 29 sentencing hearing, at which time Gong will face a statutory maximum sentence of 10 years in federal prison.

    The FBI’s Los Angeles Field Office through the Counterintelligence Task Force in partnership with the State Department’s Diplomatic Security Service and U.S. Immigration and Customs Enforcement Homeland Security Investigations is investigating this matter. The FBI’s San Francisco Field Office and the U.S. Attorney’s Office for the Northern District of California also provided substantial assistance.

    Assistant United States Attorneys David C. Lachman of the Terrorism and Export Crimes Section and Nisha Chandran of the Major Frauds Section are prosecuting this case, with valuable assistance from Department of Justice Trial Attorney Brendan P. Geary of the National Security Division’s Counterintelligence and Export Control Section.

    As a member of the FBI Counterintelligence Task Force, HSI contributes to the whole-of-government efforts to defeat hostile intelligence activities targeting the U.S., to include countering the proliferation of sensitive technology to potential adversaries. This case highlights the partnership between HSI, the FBI and DSS, each leveraging their unique capabilities and authorities, to disrupt insider threats at U.S. technology companies and to safeguard sensitive U.S. technology.

    MIL OSI USA News –

  • MIL-OSI Security: U.S. commences civil action to forfeit $7.1 million in cryptocurrency tied to oil and gas storage fraud scheme

    Source: Office of United States Attorneys

    Seattle – The U.S. Attorney’s Office, Western District of Washington today filed a civil action seeking the forfeiture of cryptocurrency valued at approximately $7.1 million seized in the investigation of an oil and gas related investment fraud scheme, announced Acting U.S. Attorney Teal Luthy Miller. The funds, part of some $97 million taken in by the coconspirators between June 2022 and July 2024, was seized by Homeland Security Investigations in December 2024.

    “The co-schemers in this fraud moved their ill-gotten gain through various cryptocurrency accounts to try to launder the money stolen from victims,” said Acting U.S. Attorney Miller. “Federal investigators and prosecutors in our office moved as quickly as possible to trace and seize the cryptocurrency so that some of the losses can be returned to victims.”

    According to the forfeiture filing and other records in the case, from at least August 2022 through August 2024, the co-schemers convinced victims to send money to what was represented as escrow accounts to purchase oil tank storage in either Rotterdam, Netherlands, or Houston. The schemers indicated that the investors could make significant profits by renting the oil tank storage they obtained to others. The victims sent money to accounts linked to these entities: Sea Forest International LLC; Apex Oil and Gas Trading LLC; Navigator Energy Logistics LLC; Terminal Energy International Escrow Service LLC; Energo Horizons Logistics (EA) LLC; Legacy Energy Logistics Transport Group LLC; Green Tree Gateway LLC. However once victims sent their money, they were not sent any further information on their investment and co-schemers simply stopped responding.

    Newcastle, Washington resident Geoffrey K. Auyeung, 47, was indicted in August 2024 as the coconspirator in the U.S. who is charged with receiving much of the fraud proceeds generated by the fraud scheme. The money was quickly moved to one or more of at least 81 different accounts at financial institutions, moved offshore, or moved to one or more of at least 19 different cryptocurrency accounts, where it was used for the purchase of cryptocurrencies, including Bitcoin, Tether, USD Coin, and Ethereum. Much of the cryptocurrency was further transferred to accounts at the cryptocurrency exchange Binance.

    According to the forfeiture filing, the cryptocurrency accounts that were seized were linked to individuals in Russia and Nigeria. Some of the cryptocurrency purchased with victims’ funds was also sent to cryptocurrency exchanges in Russia and Nigeria, at least one of which is alleged to have facilitated money laundering for transnational criminal organizations – including terrorist organizations and organizations that violate international trade sanctions.

    At the time of Auyeung’s arrest and indictment, some $2.3 million was seized from his bank accounts. The $7.1 million in cryptocurrency the government is seeking to forfeit is in addition to the $2.3 million.

    Should the court approve the forfeiture the money will be distributed to victims in the case. Currently. Investigators have identified dozens of victims who were defrauded out of approximately $17.9 million. Investigators believe those numbers will continue to grow as more victims are identified and verified.

    The case is being investigated by HSI.

    The case is being prosecuted by Assistant United States Attorneys Jehiel Baer and Yunah Chung.

    MIL Security OSI –

  • MIL-OSI Asia-Pac: 15 nomination forms for Election Committee Subsector By-elections received today

    Source: Hong Kong Government special administrative region – 4

    The nomination period for the 2025 Election Committee (EC) Subsector By-elections runs from today (July 22) until August 4. A total of 12 nomination forms for candidates and three nomination forms from designated bodies were received by the Returning Officers for various subsectors today.

    If there is a contested election for an EC subsector, a poll will be held on September 7.

    The By-elections will fill a total of 93 vacancies in the membership of the EC to be returned by election involving 28 subsectors. The breakdown of nominations by subsectors received today is set out below: 
     

    First Sector
    Subsector No. of nomination forms for candidates received today
    Catering 0
    Commercial (first) 0
    Commercial (second) 0
    Commercial (third) 0
    Employers’ Federation of Hong Kong 0
    Hotel 1
    Import and export 0
    Industrial (first) 0
    Industrial (second) 0
    Real estate and construction 0
    Small and medium enterprises 0
    Tourism 0
    Transport 0
    Second Sector
    Subsector No. of nomination forms for candidates received today
    Architectural, surveying, planning and landscape 0
    Chinese medicine 0
    Education 0
    Legal 0
    Medical and health services 0
    Sports, performing arts, culture and publication 0
    Technology and innovation 0
    Third Sector
    Subsector No. of nomination forms for candidates received today
    Agriculture and fisheries 0
    Associations of Chinese fellow townsmen 1
    Grassroots associations 1
    Labour 1
    Fourth Sector
    Subsector No. of nomination forms for candidates received today
    Heung Yee Kuk 0
    Representatives of members of Area Committees, District Fight Crime Committees, and District Fire Safety Committees of Hong Kong and Kowloon 0
    Representatives of members of Area Committees, District Fight Crime Committees, and District Fire Safety Committees of the New Territories 0
    Fifth Sector
    Subsector No. of nomination forms for candidates received today
    Representatives of Hong Kong members of relevant national organisations 8
       
    Total: 12

    Besides, 10 vacancies involving five subsectors to be returned by nomination will be filled through supplementary nominations by designated bodies. Today, three nomination forms for the relevant subsectors are received, with breakdown as below: 
     

    Accountancy
    Designated body No. of nomination forms received from designated bodies today
    Association of Hong Kong Accounting Advisors Limited 0
     
    Sports, performing arts, culture and publication
    Designated body No. of nomination forms received from designated bodies today
    Sports Federation & Olympic Committee of Hong Kong, China 0
    Hong Kong Publishing Federation Limited 0
     
    Technology and innovation
    Designated body No. of nomination forms received from designated bodies today
    The Greater Bay Area Association of Academicians 0
     
    Religious
    Designated body No. of nomination forms received from designated bodies today
    Catholic Diocese of Hong Kong 0
    Chinese Muslim Cultural and Fraternal Association 1 (1 nominee in total)
    The Hong Kong Taoist Association 1 (2 nominees in total)
     
    Representatives of associations of Hong Kong residents in the Mainland
    Designated body No. of nomination forms received from designated bodies today
    Hong Kong Chamber of Commerce in China—Guangdong 1 (1 nominee in total)
       
    Total: 3 (4 nominees in total)

    Particulars of the nominated persons received today will be uploaded to the election website (www.elections.gov.hk).

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: SCS encourages Administrative Service summer interns

    Source: Hong Kong Government special administrative region – 4

         The Secretary for the Civil Service, Mrs Ingrid Yeung, met and shared experiences with over 50 tertiary students participating in the Administrative Service Summer Internship Programme today (July 22). She encouraged them to apply for civil service positions such as the Administrative Officer (AO) post, and to use their professional knowledge to serve the community, benefit people’s livelihood and contribute to the development of Hong Kong.
     
         This year, the Civil Service Bureau (CSB) has arranged for the interns to discuss and submit policy proposals in various areas including transport, planning and development, social enterprises, district affairs, the silver economy, etc, based on their observations and insights gained after working in different bureaux or departments. The CSB will submit these proposals to the bureaux or departments where the interns were assigned to for their reference.

         At the gathering, Mrs Yeung listened to the sharing by interns on both their work experiences and proposed policy initiatives during their internships. Drawing on her nearly 40 years of service in the civil service, she shared valuable insights as an AO and encouraged students to actively enrich themselves, plan ahead for their future and contribute to the development of the country and Hong Kong.
     
         She said, “I am aware that this round of the Programme has received a record number of applications, attracting more than 300 applications from tertiary students in Hong Kong, mainland China and overseas. From your sharing, I can genuinely feel your passion for public service. I would like to take this opportunity to call on young people who are dedicated to serve the community and willing to take on responsibilities to join the civil service.

         “I look forward to interns becoming AOs in the near future, serving the public and contributing to the country and Hong Kong with your own strengths and talents.”

         The Permanent Secretary for the Civil Service, Mr Clement Leung, and Deputy Secretary for the Civil Service Ms Eureka Cheung also joined the sharing session and spoke with interns to learn about their internship experiences and views on Hong Kong’s development.

         AOs are professional public administrators who play a pivotal role in the Government. They are responsible for assisting in the formulation of government policies, co-ordinating and supervising various initiatives, managing the use of public resources, promoting district work and publicising Hong Kong externally, etc. To enable AOs to accumulate experience and unleash their full potential in different public policy areas, they are posted to various bureaux and departments at regular intervals, broadening their horizons and gaining a fuller grasp of the challenges and opportunities in public administration.

         The CSB organises the Administrative Service Internship Programme every summer and winter, offering students who aspire to become AOs opportunities to work alongside serving AOs for around eight weeks to gain early practical experiences in public service and lay a solid foundation for their future career development. Statistics from the past five years show that around one in every five newly recruited AOs had participated in the Programme. 

         The Government will launch a new round of recruitment for the posts of Administrative Officer, Executive Officer II, Assistant Labour Officer II, Assistant Trade Officer II and Management Services Officer II in September this year. Prospective applicants must first take the Common Recruitment Examination (CRE) and the Basic Law and National Security Law Test to attain the requisite scores. The new round of the CRE is currently open for application. Interested candidates are required to apply online by August 1. For details, please refer to the CSB website (www.csb.gov.hk/english/index.html).

    MIL OSI Asia Pacific News –

  • MIL-OSI Security: FBI Columbia Warns of Government Impersonation Scams Using Spoofed FBI Phone Number

    Source: US FBI

    The FBI is warning the public about a rise in government impersonation scams reported across South Carolina. In these schemes, scammers spoof phone numbers associated with the FBI— including the main number for the FBI’s Columbia Field Office— to appear legitimate.
    These scams typically involve criminals posing as government officials who threaten arrest or prosecution unless the victim provides money or personal information.

    Recent reports to the FBI detail a common tactic: victims receive a call informing them they have missed federal jury duty or that there is a warrant for their arrest. They are told to expect a follow-up call from an FBI agent and, when called, the number on the caller ID shows the FBI Columbia number. During that second call, the impersonator instructs victims to withdraw large sums of cash and convert it into digital currency at designated kiosks to avoid fines and penalties. In some cases, victims receive fraudulent documents via text message featuring official-looking government seals and letterhead.

    Victims have reported losing thousands of dollars before realizing they were being scammed.

    While this type of fraud is not new, it is one of many variations that exploit fear and urgency by invoking law enforcement authority.

    Important reminders:

    Anyone who believes they may have been targeted or victimized should report the incident to the FBI at 1-800-CALL-FBI or submit a tip online at tips.fbi.gov.

    MIL Security OSI –