Trade – Page 195 – NewzIntel.com

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

Source: GlobeNewswire (MIL-OSI)

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

(Dollars in thousands, except earnings per share)	Three Months Ended
	Mar 31, 2025		Dec 31, 2024		Mar 31, 2024
Net income and earnings per share:
Net income	$41,518		$44,747		$39,409
Basic EPS		0.65		0.70		0.70
Diluted EPS		0.65		0.70		0.70
Adjusted diluted EPS (Non-GAAP)⁽¹⁾		0.66		0.73		0.65

“Results for the quarter represent a good start to the year with solid profitability and growth in loans and deposits,” remarked C. Mitchell Waycaster, Chief Executive Officer of the Company. “On April 1st, we completed the merger with The First Bancshares, Inc. and welcome their team to Renasant. Together, we are positioned to accelerate profit performance and operate in some of the country’s most attractive banking markets.”

Quarterly Highlights

Acquisition of The First Bancshares, Inc.

On April 1, 2025, the Company completed its merger with The First Bancshares, Inc. (“The First”). As of the acquisition date, The First operated 116 locations throughout Louisiana, Mississippi, Alabama, Georgia and Florida and, prior to any purchase accounting adjustments, had approximately $8.0 billion in assets, which included approximately $5.4 billion in loans, and approximately $6.5 billion in deposits.

Earnings

Net income for the first quarter of 2025 was $41.5 million; diluted EPS and adjusted diluted EPS (non-GAAP)⁽¹⁾ were $0.65 and $0.66, respectively
Net interest income (fully tax equivalent) for the first quarter of 2025 was $137.4 million, up $1.9 million linked quarter
For the first quarter of 2025, net interest margin was 3.45%, up 9 basis points linked quarter
Cost of total deposits was 2.22% for the first quarter of 2025, down 13 basis points linked quarter
Noninterest income increased $2.2 million linked quarter, driven in part by an increase in mortgage banking income and gains on the sale of SBA loans
Mortgage banking income increased $1.3 million linked quarter. The mortgage division generated $632.1 million in interest rate lock volume in the first quarter of 2025, up $149.8 million linked quarter. Gain on sale margin was 1.42% for the first quarter of 2025, down 59 basis points linked quarter
Noninterest expense decreased $0.9 million linked quarter. Merger and conversion expenses decreased $1.3 million linked quarter

Balance Sheet

Loans increased $170.6 million linked quarter, representing 5.4% annualized net loan growth
Securities increased $146.8 million linked quarter. The Company purchased $175.7 million in securities during the first quarter, which was offset by cash flows related to principal payments, calls and maturities of $58.6 million and a positive fair market value adjustment in the Company’s available-for-sale portfolio of $29.7 million
Deposits at March 31, 2025 increased $199.5 million on a linked quarter basis. Noninterest bearing deposits increased $137.4 million linked quarter and represented 24.0% of total deposits at March 31, 2025

Capital and Stock Repurchase Program

Book value per share and tangible book value per share (non-GAAP)⁽¹⁾ increased 1.6% and 2.7%, respectively, linked quarter
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 first quarter of 2025

Credit Quality

The Company recorded a provision for credit losses of $4.8 million for the first quarter of 2025, up $2.6 million linked quarter
The ratio of the allowance for credit losses on loans to total loans was 1.56% at March 31, 2025, down one basis point linked quarter
The coverage ratio, or the allowance for credit losses on loans to nonperforming loans, was 206.55% at March 31, 2025, compared to 178.11% at December 31, 2024
Net loan recoveries for the first quarter of 2025 were $0.1 million
Nonperforming loans to total loans decreased to 0.76% at March 31, 2025 compared to 0.88% at December 31, 2024, and criticized loans (which include classified and Special Mention loans) to total loans decreased to 2.45% at March 31, 2025, compared to 2.89% at December 31, 2024

_{⁽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
	Mar 31, 2025		Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024
Interest income
Loans held for investment	$	196,566	$	199,240		$	202,655		$	198,397		$	192,390
Loans held for sale		3,008		3,564			4,212			3,530			2,308
Securities		12,117		10,510			10,304			10,410			10,700
Other		8,639		12,030			11,872			7,874			7,781
Total interest income		220,330		225,344			229,043			220,211			213,179
Interest expense
Deposits		79,386		85,571			90,787			87,621			82,613
Borrowings		6,747		6,891			7,258			7,564			7,276
Total interest expense		86,133		92,462			98,045			95,185			89,889
Net interest income		134,197		132,882			130,998			125,026			123,290
Provision for credit losses
Provision for loan losses		2,050		3,100			1,210			4,300			2,638
Provision for (Recovery of) unfunded commitments		2,700		(500	)		(275	)		(1,000	)		(200	)
Total provision for credit losses		4,750		2,600			935			3,300			2,438
Net interest income after provision for credit losses		129,447		130,282			130,063			121,726			120,852
Noninterest income		36,395		34,218			89,299			38,762			41,381
Noninterest expense		113,876		114,747			121,983			111,976			112,912
Income before income taxes		51,966		49,753			97,379			48,512			49,321
Income taxes		10,448		5,006			24,924			9,666			9,912
Net income	$	41,518	$	44,747		$	72,455		$	38,846		$	39,409

Adjusted net income (non-GAAP)⁽¹⁾	$	42,111	$	46,458		$	42,960		$	38,846		$	36,572
Adjusted pre-provision net revenue (“PPNR”) (non-GAAP)⁽¹⁾	$	57,507	$	54,177		$	56,238		$	51,812		$	48,231

Basic earnings per share	$	0.65	$	0.70		$	1.18		$	0.69		$	0.70
Diluted earnings per share		0.65		0.70			1.18			0.69			0.70
Adjusted diluted earnings per share (non-GAAP)⁽¹⁾		0.66		0.73			0.70			0.69			0.65
Average basic shares outstanding		63,666,419		63,565,437			61,217,094			56,342,909			56,208,348
Average diluted shares outstanding		64,028,025		64,056,303			61,632,448			56,684,626			56,531,078
Cash dividends per common share	$	0.22	$	0.22		$	0.22		$	0.22		$	0.22

_{⁽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
	Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024
Return on average assets	0.94	%	0.99	%	1.63	%	0.90	%	0.92	%
Adjusted return on average assets (non-GAAP)⁽¹⁾	0.95		1.03		0.97		0.90		0.86
Return on average tangible assets (non-GAAP)⁽¹⁾	1.01		1.07		1.75		0.98		1.00
Adjusted return on average tangible assets (non-GAAP)⁽¹⁾	1.02		1.11		1.05		0.98		0.93
Return on average equity	6.25		6.70		11.29		6.68		6.85
Adjusted return on average equity (non-GAAP)⁽¹⁾	6.34		6.96		6.69		6.68		6.36
Return on average tangible equity (non-GAAP)⁽¹⁾	10.16		10.97		18.83		12.04		12.45
Adjusted return on average tangible equity (non-GAAP)⁽¹⁾	10.30		11.38		11.26		12.04		11.58
Efficiency ratio (fully taxable equivalent)	65.51		67.61		54.73		67.31		67.52
Adjusted efficiency ratio (non-GAAP)⁽¹⁾	64.43		65.82		64.62		66.60		68.23
Dividend payout ratio	33.85		31.43		18.64		31.88		31.43

Capital and Balance Sheet Ratios

	As of
	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024
Shares outstanding		63,739,467			63,565,690			63,564,028			56,367,924			56,304,860
Market value per share	$	33.93		$	35.75		$	32.50		$	30.54		$	31.32
Book value per share		42.79			42.13			41.82			41.77			41.25
Tangible book value per share (non-GAAP)⁽¹⁾		27.07			26.36			26.02			23.89			23.32
Shareholders’ equity to assets		14.93	%		14.85	%		14.80	%		13.45	%		13.39	%
Tangible common equity ratio (non-GAAP)⁽¹⁾		9.99			9.84			9.76			8.16			8.04
Leverage ratio		11.39			11.34			11.32			9.81			9.75
Common equity tier 1 capital ratio		12.59			12.73			12.88			10.75			10.59
Tier 1 risk-based capital ratio		13.34			13.50			13.67			11.53			11.37
Total risk-based capital ratio		16.88			17.08			17.32			15.15			15.00

_{⁽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.}

Noninterest Income and Noninterest Expense

(Dollars in thousands)	Three Months Ended
	Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024
Noninterest income
Service charges on deposit accounts	$	10,364	$	10,549	$	10,438	$	10,286	$	10,506
Fees and commissions		3,787		4,181		4,116		3,944		3,949
Insurance commissions		—		—		—		2,758		2,716
Wealth management revenue		7,067		6,371		5,835		5,684		5,669
Mortgage banking income		8,147		6,861		8,447		9,698		11,370
Gain on sale of insurance agency		—		—		53,349		—		—
Gain on extinguishment of debt		—		—		—		—		56
BOLI income		2,929		3,317		2,858		2,701		2,691
Other		4,101		2,939		4,256		3,691		4,424
Total noninterest income	$	36,395	$	34,218	$	89,299	$	38,762	$	41,381
Noninterest expense
Salaries and employee benefits	$	71,957	$	70,260	$	71,307	$	70,731	$	71,470
Data processing		4,089		4,145		4,133		3,945		3,807
Net occupancy and equipment		11,754		11,312		11,415		11,844		11,389
Other real estate owned		685		590		56		105		107
Professional fees		2,884		2,686		3,189		3,195		3,348
Advertising and public relations		4,297		3,840		3,677		3,807		4,886
Intangible amortization		1,080		1,133		1,160		1,186		1,212
Communications		2,033		2,067		2,176		2,112		2,024
Merger and conversion related expenses		791		2,076		11,273		—		—
Other		14,306		16,638		13,597		15,051		14,669
Total noninterest expense	$	113,876	$	114,747	$	121,983	$	111,976	$	112,912

Mortgage Banking Income

(Dollars in thousands)	Three Months Ended
	Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024
Gain on sales of loans, net	$	4,500	$	2,379	$	4,499	$	5,199	$	4,535
Fees, net		2,317		2,850		2,646		2,866		1,854
Mortgage servicing income, net		1,330		1,632		1,302		1,633		4,981
Total mortgage banking income	$	8,147	$	6,861	$	8,447	$	9,698	$	11,370

Balance Sheet

(Dollars in thousands)	As of
	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024
Assets
Cash and cash equivalents	$	1,091,339		$	1,092,032		$	1,275,620		$	851,906		$	844,400
Securities held to maturity, at amortized cost		1,101,901			1,126,112			1,150,531			1,174,663			1,199,111
Securities available for sale, at fair value		1,002,056			831,013			764,844			749,685			764,486
Loans held for sale, at fair value		226,003			246,171			291,735			266,406			191,440
Loans held for investment		13,055,593			12,885,020			12,627,648			12,604,755			12,500,525
Allowance for credit losses on loans		(203,931	)		(201,756	)		(200,378	)		(199,871	)		(201,052	)
Loans, net		12,851,662			12,683,264			12,427,270			12,404,884			12,299,473
Premises and equipment, net		279,011			279,796			280,550			280,966			282,193
Other real estate owned		8,654			8,673			9,136			7,366			9,142
Goodwill and other intangibles		1,001,923			1,003,003			1,004,136			1,008,062			1,009,248
Bank-owned life insurance		337,502			391,810			389,138			387,791			385,186
Mortgage servicing rights		72,902			72,991			71,990			72,092			71,596
Other assets		298,428			300,003			293,890			306,570			289,466
Total assets	$	18,271,381		$	18,034,868		$	17,958,840		$	17,510,391		$	17,345,741

Liabilities and Shareholders’ Equity
Liabilities
Deposits:
Noninterest-bearing	$	3,541,375		$	3,403,981		$	3,529,801		$	3,539,453		$	3,516,164
Interest-bearing		11,230,720			11,168,631			10,979,950			10,715,760			10,720,999
Total deposits		14,772,095			14,572,612			14,509,751			14,255,213			14,237,163
Short-term borrowings		108,015			108,018			108,732			232,741			108,121
Long-term debt		433,309			430,614			433,177			428,677			428,047
Other liabilities		230,857			245,306			249,102			239,059			250,060
Total liabilities		15,544,276			15,356,550			15,300,762			15,155,690			15,023,391

Shareholders’ equity:
Common stock		332,421			332,421			332,421			296,483			296,483
Treasury stock		(91,646	)		(97,196	)		(97,251	)		(97,534	)		(99,683	)
Additional paid-in capital		1,486,849			1,491,847			1,488,678			1,304,782			1,303,613
Retained earnings		1,121,102			1,093,854			1,063,324			1,005,086			978,880
Accumulated other comprehensive loss		(121,621	)		(142,608	)		(129,094	)		(154,116	)		(156,943	)
Total shareholders’ equity		2,727,105			2,678,318			2,658,078			2,354,701			2,322,350
Total liabilities and shareholders’ equity	$	18,271,381		$	18,034,868		$	17,958,840		$	17,510,391		$	17,345,741

Net Interest Income and Net Interest Margin

(Dollars in thousands)	Three Months Ended
	March 31, 2025						December 31, 2024						March 31, 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	$	12,966,869	$	199,504	6.24	%	$	12,746,941	$	201,562	6.29	%	$	12,407,976	$	194,640	6.30	%
Loans held for sale		200,917		3,008	5.99	%		250,812		3,564	5.69	%		155,382		2,308	5.94	%
Taxable securities		1,883,535		10,971	2.33	%		1,784,167		9,408	2.11	%		1,891,817		9,505	2.01	%
Tax-exempt securities⁽¹⁾		259,800		1,443	2.22	%		261,679		1,400	2.14	%		270,279		1,505	2.23	%
Total securities		2,143,335		12,414	2.32	%		2,045,846		10,808	2.11	%		2,162,096		11,010	2.04	%
Interest-bearing balances with banks		824,743		8,639	4.25	%		1,025,294		12,030	4.67	%		570,336		7,781	5.49	%
Total interest-earning assets		16,135,864		223,565	5.61	%		16,068,893		227,964	5.65	%		15,295,790		215,739	5.66	%
Cash and due from banks		181,869						188,493						188,503
Intangible assets		1,002,511						1,003,551						1,009,825
Other assets		669,392						682,211						708,895
Total assets	$	17,989,636					$	17,943,148					$	17,203,013
Interest-bearing liabilities:
Interest-bearing demand⁽²⁾	$	7,835,617	$	54,710	2.83	%	$	7,629,685	$	57,605	3.00	%	$	6,955,989	$	52,500	3.03	%
Savings deposits		813,451		711	0.35	%		804,132		706	0.35	%		860,397		730	0.34	%
Brokered deposits		—		—	—	%		60,298		1,013	6.68	%		445,608		5,987	5.39	%
Time deposits		2,474,218		23,965	3.93	%		2,512,097		26,247	4.16	%		2,319,420		23,396	4.06	%
Total interest-bearing deposits		11,123,286		79,386	2.89	%		11,006,212		85,571	3.09	%		10,581,414		82,613	3.13	%
Borrowed funds		556,734		6,747	4.88	%		556,966		6,891	4.94	%		562,398		7,276	5.35	%
Total interest-bearing liabilities		11,680,020		86,133	2.99	%		11,563,178		92,462	3.18	%		11,143,812		89,889	3.24	%
Noninterest-bearing deposits		3,408,830						3,502,931						3,518,612
Other liabilities		208,105						220,154						226,308
Shareholders’ equity		2,692,681						2,656,885						2,314,281
Total liabilities and shareholders’ equity	$	17,989,636					$	17,943,148					$	17,203,013
Net interest income/ net interest margin			$	137,432	3.45	%			$	135,502	3.36	%			$	125,850	3.30	%
Cost of funding					2.31	%					2.44	%					2.46	%
Cost of total deposits					2.22	%					2.35	%					2.35	%

_{⁽¹⁾ U.S. Government and some U.S. Government Agency securities are tax-exempt in the states in which the Company operates.}
_{⁽²⁾ Interest-bearing demand deposits include interest-bearing transactional accounts and money market deposits.}

Loan Portfolio

(Dollars in thousands)	As of
	Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024
Loan Portfolio:
Commercial, financial, agricultural	$	1,888,580	$	1,885,817	$	1,804,961	$	1,847,762	$	1,869,408
Lease financing		85,412		90,591		98,159		102,996		107,474
Real estate – construction		1,090,862		1,093,653		1,198,838		1,355,425		1,243,535
Real estate – 1-4 family mortgages		3,583,080		3,488,877		3,440,038		3,435,818		3,429,286
Real estate – commercial mortgages		6,320,120		6,236,068		5,995,152		5,766,478		5,753,230
Installment loans to individuals		87,539		90,014		90,500		96,276		97,592
Total loans	$	13,055,593	$	12,885,020	$	12,627,648	$	12,604,755	$	12,500,525

Credit Quality and Allowance for Credit Losses on Loans

(Dollars in thousands)	As of
	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024
Nonperforming Assets:
Nonaccruing loans	$	98,638		$	110,811		$	113,872		$	97,795		$	73,774
Loans 90 days or more past due		95			2,464			5,351			240			451
Total nonperforming loans		98,733			113,275			119,223			98,035			74,225
Other real estate owned		8,654			8,673			9,136			7,366			9,142
Total nonperforming assets	$	107,387		$	121,948		$	128,359		$	105,401		$	83,367

Criticized Loans
Classified loans	$	224,654		$	241,708		$	218,135		$	191,595		$	206,502
Special Mention loans		95,778			130,882			163,804			138,343			138,366
Criticized loans⁽¹⁾	$	320,432		$	372,590		$	381,939		$	329,938		$	344,868

Allowance for credit losses on loans	$	203,931		$	201,756		$	200,378		$	199,871		$	201,052
Net loan (recoveries) charge-offs	$	(125	)	$	1,722		$	703		$	5,481		$	164
Annualized net loan charge-offs / average loans		—	%		0.05	%		0.02	%		0.18	%		0.01	%
Nonperforming loans / total loans		0.76			0.88			0.94			0.78			0.59
Nonperforming assets / total assets		0.59			0.68			0.71			0.60			0.48
Allowance for credit losses on loans / total loans		1.56			1.57			1.59			1.59			1.61
Allowance for credit losses on loans / nonperforming loans		206.55			178.11			168.07			203.88			270.87
Criticized loans / total loans		2.45			2.89			3.02			2.62			2.76

_{⁽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, April 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=3wLevlin. To access the conference via telephone, dial 1-877-513-1143 in the United States and request the Renasant Corporation 2025 First 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 6525571 or by dialing 1-412-317-0088 internationally and entering the same conference number. Telephone replay access is available until May 7, 2025.

ABOUT RENASANT CORPORATION:
Renasant Corporation is the parent of Renasant Bank, a 121-year-old financial services institution. As of April 1, 2025, Renasant has assets of approximately $26.0 billion and operates 280 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 Bancshares, Inc.) (“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 first quarter of 2025, merger and conversion expenses), 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
	Mar 31, 2025			Dec 31, 2024			Sep 30, 2024			Jun 30, 2024			Mar 31, 2024
Adjusted Pre-Provision Net Revenue (“PPNR”)
Net income (GAAP)	$	41,518		$	44,747		$	72,455		$	38,846		$	39,409
Income taxes		10,448			5,006			24,924			9,666			9,912
Provision for credit losses (including unfunded commitments)		4,750			2,600			935			3,300			2,438
Pre-provision net revenue (non-GAAP)	$	56,716		$	52,353		$	98,314		$	51,812		$	51,759
Merger and conversion expense		791			2,076			11,273			—			—
Gain on extinguishment of debt		—			—			—			—			(56	)
Gain on sales of MSR		—			(252	)		—			—			(3,472	)
Gain on sale of insurance agency		—			—			(53,349	)		—			—
Adjusted pre-provision net revenue (non-GAAP)	$	57,507		$	54,177		$	56,238		$	51,812		$	48,231

Adjusted Net Income and Adjusted Tangible Net Income
Net income (GAAP)	$	41,518		$	44,747		$	72,455		$	38,846		$	39,409
Amortization of intangibles		1,080			1,133			1,160			1,186			1,212
Tax effect of adjustments noted above⁽¹⁾		(270	)		(283	)		(296	)		(233	)		(237	)
Tangible net income (non-GAAP)	$	42,328		$	45,597		$	73,319		$	39,799		$	40,384

Net income (GAAP)	$	41,518		$	44,747		$	72,455		$	38,846		$	39,409
Merger and conversion expense		791			2,076			11,273			—			—
Gain on extinguishment of debt		—			—			—			—			(56	)
Gain on sales of MSR		—			(252	)		—			—			(3,472	)
Gain on sale of insurance agency		—			—			(53,349	)		—			—
Tax effect of adjustments noted above⁽¹⁾		(198	)		(113	)		12,581			—			691
Adjusted net income (non-GAAP)	$	42,111		$	46,458		$	42,960		$	38,846		$	36,572
Amortization of intangibles		1,080			1,133			1,160			1,186			1,212
Tax effect of adjustments noted above⁽¹⁾		(270	)		(283	)		(296	)		(233	)		(237	)
Adjusted tangible net income (non-GAAP)	$	42,921		$	47,308		$	43,824		$	39,799		$	37,547
Tangible Assets and Tangible Shareholders’ Equity
Average shareholders’ equity (GAAP)	$	2,692,681		$	2,656,885		$	2,553,586		$	2,337,731		$	2,314,281
Average intangible assets		(1,002,511	)		(1,003,551	)		(1,004,701	)		(1,008,638	)		(1,009,825	)
Average tangible shareholders’ equity (non-GAAP)	$	1,690,170		$	1,653,334		$	1,548,885		$	1,329,093		$	1,304,456

Average assets (GAAP)	$	17,989,636		$	17,943,148		$	17,681,664		$	17,371,369		$	17,203,013
Average intangible assets		(1,002,511	)		(1,003,551	)		(1,004,701	)		(1,008,638	)		(1,009,825	)
Average tangible assets (non-GAAP)	$	16,987,125		$	16,939,597		$	16,676,963		$	16,362,731		$	16,193,188

Shareholders’ equity (GAAP)	$	2,727,105		$	2,678,318		$	2,658,078		$	2,354,701		$	2,322,350
Intangible assets		(1,001,923	)		(1,003,003	)		(1,004,136	)		(1,008,062	)		(1,009,248	)
Tangible shareholders’ equity (non-GAAP)	$	1,725,182		$	1,675,315		$	1,653,942		$	1,346,639		$	1,313,102

Total assets (GAAP)	$	18,271,381		$	18,034,868		$	17,958,840		$	17,510,391		$	17,345,741
Intangible assets		(1,001,923	)		(1,003,003	)		(1,004,136	)		(1,008,062	)		(1,009,248	)
Total tangible assets (non-GAAP)	$	17,269,458		$	17,031,865		$	16,954,704		$	16,502,329		$	16,336,493

Adjusted Performance Ratios
Return on average assets (GAAP)		0.94	%		0.99	%		1.63	%		0.90	%		0.92	%
Adjusted return on average assets (non-GAAP)		0.95			1.03			0.97			0.90			0.86
Return on average tangible assets (non-GAAP)		1.01			1.07			1.75			0.98			1.00
Pre-provision net revenue to average assets (non-GAAP)		1.28			1.16			2.21			1.20			1.21
Adjusted pre-provision net revenue to average assets (non-GAAP)		1.30			1.20			1.27			1.20			1.13
Adjusted return on average tangible assets (non-GAAP)		1.02			1.11			1.05			0.98			0.93
Return on average equity (GAAP)		6.25			6.70			11.29			6.68			6.85
Adjusted return on average equity (non-GAAP)		6.34			6.96			6.69			6.68			6.36
Return on average tangible equity (non-GAAP)		10.16			10.97			18.83			12.04			12.45
Adjusted return on average tangible equity (non-GAAP)		10.30			11.38			11.26			12.04			11.58

Adjusted Diluted Earnings Per Share
Average diluted shares outstanding		64,028,025			64,056,303			61,632,448			56,684,626			56,531,078

Diluted earnings per share (GAAP)	$	0.65		$	0.70		$	1.18		$	0.69		$	0.70
Adjusted diluted earnings per share (non-GAAP)	$	0.66		$	0.73		$	0.70		$	0.69		$	0.65

Tangible Book Value Per Share
Shares outstanding		63,739,467			63,565,690			63,564,028			56,367,924			56,304,860

Book value per share (GAAP)	$	42.79		$	42.13		$	41.82		$	41.77		$	41.25
Tangible book value per share (non-GAAP)	$	27.07		$	26.36		$	26.02		$	23.89		$	23.32

Tangible Common Equity Ratio
Shareholders’ equity to assets (GAAP)		14.93	%		14.85	%		14.80	%		13.45	%		13.39	%
Tangible common equity ratio (non-GAAP)		9.99	%		9.84	%		9.76	%		8.16	%		8.04	%
Adjusted Efficiency Ratio
Net interest income (FTE) (GAAP)	$	137,432		$	135,502		$	133,576		$	127,598		$	125,850

Total noninterest income (GAAP)	$	36,395		$	34,218		$	89,299		$	38,762		$	41,381
Gain on sales of MSR		—			(252	)		—			—			(3,472	)
Gain on extinguishment of debt		—			—			—			—			(56	)
Gain on sale of insurance agency		—			—			(53,349	)		—			—
Total adjusted noninterest income (non-GAAP)	$	36,395		$	33,966		$	35,950		$	38,762		$	37,853

Noninterest expense (GAAP)	$	113,876		$	114,747		$	121,983		$	111,976		$	112,912
Amortization of intangibles		(1,080	)		(1,133	)		(1,160	)		(1,186	)		(1,212	)
Merger and conversion expense		(791	)		(2,076	)		(11,273	)		—			—
Total adjusted noninterest expense (non-GAAP)	$	112,005		$	111,538		$	109,550		$	110,790		$	111,700

Efficiency ratio (GAAP)		65.51	%		67.61	%		54.73	%		67.31	%		67.52	%
Adjusted efficiency ratio (non-GAAP)		64.43	%		65.82	%		64.62	%		66.60	%		68.23	%

Adjusted Net Interest Income and Adjusted Net Interest Margin
Net interest income (FTE) (GAAP)	$	137,432		$	135,502		$	133,576		$	127,598		$	125,850
Net interest income collected on problem loans		(1,026	)		(151	)		(642	)		146			(123	)
Accretion recognized on purchased loans		(558	)		(616	)		(1,089	)		(897	)		(800	)
Adjustments to net interest income	$	(1,584	)	$	(767	)	$	(1,731	)	$	(751	)	$	(923	)
Adjusted net interest income (FTE) (non-GAAP)	$	135,848		$	134,735		$	131,845		$	126,847		$	124,927

Net interest margin (GAAP)		3.45	%		3.36	%		3.36	%		3.31	%		3.30	%
Adjusted net interest margin (non-GAAP)		3.42	%		3.34	%		3.32	%		3.29	%		3.28	%

Adjusted Loan Yield
Loan interest income (FTE) (GAAP)	$	199,504		$	201,562		$	204,935		$	200,670		$	194,640
Net interest income collected on problem loans		(1,026	)		(151	)		(642	)		146			(123	)
Accretion recognized on purchased loans		(558	)		(616	)		(1,089	)		(897	)		(800	)
Adjusted loan interest income (FTE) (non-GAAP)	$	197,920		$	200,795		$	203,204		$	199,919		$	193,717

Loan yield (GAAP)		6.24	%		6.29	%		6.47	%		6.41	%		6.30	%
Adjusted loan yield (non-GAAP)		6.19	%		6.27	%		6.41	%		6.38	%		6.27	%

_{⁽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. The tax effect of the discrete gain on sale of insurance agency was calculated based on an estimated tax rate of 27.0%.}

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 –

April 23, 2025

MIL-OSI USA: In Seattle, Senator Murray Hears from U District Small Businesses About How Trump’s Trade War is Affecting Them

US Senate News:

Source: United States Senator for Washington State Patty Murray

***AUDIO HERE; PHOTOS and B-ROLL HERE***

Seattle, WA— Today, U.S. Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, met with small business owners in Seattle’s University District to hear how Trump’s chaotic trade war is impacting them. Trump is currently taxing goods from every country—including close allies like Canada—at a minimum 10 percent tariff rate across-the-board. He has also significantly escalated his trade war with China, with 145 percent tariffs on Chinese goods—meaning higher prices and serious pain for families and small businesses across Washington state and the country. Even with his 90-day “pause” on reciprocal tariffs, Trump’s new tariffs are still the highest tariff rates in decades, and are estimated to cost American families more than $4,000 each year—the largest tax increase since 1968.

During the visit, Senator Murray heard from small business owners about how the Trump administration’s reckless trade war is leading to serious uncertainty for businesses and consumers in Seattle. Businesses are worried that tariffs will push them to raise prices—potentially driving customers away—and lay off workers to cut costs. Participating in the discussion with Senator Murray, held at Café Allegro, were: Yasuaki Saito, Owner of Saint Bread; Miles Richardson, General Manager of University Volkswagen/Audi Seattle; Trevor Peterson, CEO of the University Book Store; Efrem Fesaha, CEO of Boon Boona coffee; Jennifer Antos, Executive Director of Seattle Neighborhood Farmers’ Markets; Chris Peterson, Owner of Cafe Allegro since 1985; Lois Ko, Owner of Sweet Alchemy ice cream shops in the U District, Ballard, and Capitol Hill, and Anson Lin, Owner of Astora Construction.

“These small businesses are at the heart of the U District community, and it was important to hear from them about how Trump’s tariffs and his pointless trade war are affecting their bottom lines—it’s something I’m hearing about everywhere I go across Washington state,” said Senator Murray. “Trump’s ham-fisted trade war is threatening livelihoods here in Washington state—small businesses are worrying about whether they can keep their doors open without laying people off, families that are already scrambling to pay the bills are worried about rising costs at the grocery store, and our farmers are deeply concerned about retaliatory tariffs from other nations in response to Trump’s tariffs. Trump’s tariffs are an enormous new tax on hardworking Americans and businesses. I will continue to share the stories and raise the voices of the people in Washington state who are being affected by Trump’s thoughtless trade war. There is no good reason for us to be picking fights with our trading partners and close allies like Canada—it’s time for Republicans in Congress to stand up and vote with us to end this chaos.”

Washington state has one of the most trade-dependent economies of any state in the country, with 40 percent of jobs tied to international commerce. Washington state is the top U.S. producer of apples, blueberries, hops, pears, spearmint oil, and sweet cherries—all of which risk losing vital export markets due to retaliatory tariffs from key trading partners including Canada. Additionally, more than 12,000 small and medium-sized companies in Washington state export goods and will struggle to absorb the impact of retaliatory tariffs. Canada is Washington’s largest trading partner, accounting for nearly $20 billion in imports and $10 billion in exports. China is the world’s second-largest economy and Washington state exported over $12 billion in goods to China last year—making China Washington state’s top export partner—and imported $11.2 billion in goods, the most in imports from any country aside from Canada. Trump’s tariffs during his first term were extremely costly for Washington state—for example, India imposed a 20 percent retaliatory tariff on U.S. apples, causing Washington apple shipments to India to fall by 99 percent and growers to lose hundreds of millions of dollars in exports.

Senator Murray has been a vocal opponent of Trump’s chaotic trade war and has been lifting up the voices of people in Washington state harmed by this administration’s approach to trade and calling on Republicans to end Trump’s trade war—which Congress has the power to do—and take back Congress’ Constitutionally-granted power to impose tariffs. Earlier this month, Senator Murray brought together leaders across Washington state who highlighted how Trump’s ongoing trade war is already a devastating hit to Washington state’s economy, businesses, and our agriculture sector. Senator Murray also took to the Senate floor to lay out how Trump’s chaotic trade war is seriously threatening our economy, American businesses, families’ retirement savings, and so much else. Last week, Senator Murray joined her colleagues in pressing U.S. Trade Representative Ambassador Jamieson Greer on how the Trump administration’s tariffs are affecting farmers across the country. Last week, Senator Murray also held a roundtable discussion in Tacoma with local businesses and ports, toured local businesses in downtown Vancouver, and held a roundtable discussion in Vancouver with local businesses and ports, to highlight how Trump’s chaotic trade war and senseless tariffs are harming the overall economy in Washington state.

MIL OSI USA News –

April 23, 2025

MIL-OSI: PHH Mortgage Launches Proprietary Reverse Mortgage Product

Source: GlobeNewswire (MIL-OSI)

WEST PALM BEACH, Fla., April 22, 2025 (GLOBE NEWSWIRE) — PHH Mortgage (“PHH” or the “Company”), a subsidiary of Onity Group Inc. (NYSE: ONIT) and a leading non-bank mortgage servicer and originator, today announced that the Company has launched a proprietary reverse mortgage product known as EquityIQ^®. The product will be available through the Company’s wholesale network and marketed under PHH’s reverse mortgage product brand, Liberty Reverse Mortgage.

“For more than two decades, we’ve leveraged our reverse mortgage expertise to help our partners and homeowners safely access reverse mortgage products and establish ourselves as an industry-leading reverse mortgage lender and servicer,” said Andy Peach, Executive Vice President and Chief Lending Officer. “We understand our customers’ needs and the many benefits of a reverse mortgage. With an estimated $14 trillion in senior home equity,¹ we’re excited to launch EquityIQ, which complements our existing Home Equity Conversion Mortgage (HECM) product offering, to help senior homeowners unlock their home equity to meet personal and financial needs.”

“Our release of the EquityIQ product is the latest example of how PHH continues to provide new opportunities for its partners to grow their businesses,” said Rich Bradfield, Executive Vice President and Chief Growth Officer. “We believe EquityIQ can be a valuable option for our wholesale partners and their clients, and we look forward to continuing to expand our product options to meet our customers’ needs.”

EquityIQ^®Product Information

Available to homeowners at least 55 years old (unless restricted by state law)
Private (not insured by the Federal Housing Administration), jumbo reverse mortgage; allows homeowners to access more available funds as compared to a traditional HECM
Fixed-rate loan with a maximum loan amount of $4 million
No upfront or ongoing mortgage insurance and no monthly servicing fee
Full draw of available proceeds required at closing
Eligible property types include single-family, condominium, townhomes, multi-family property (2-4 units) and planned unit development
All applicable parties must receive counseling from a PHH-approved housing counseling agency
Available for primary residence only and borrower is required to continue paying property taxes, homeowners insurance, HOA fees and maintenance costs

For Information on becoming a wholesale partner please visit https://partner.libertyreversemortgage.com.

¹ Source: NRMLA/RiskSpan Reverse Mortgage Market Index quarterly release as of March 31, 2025

About Onity Group

Onity Group Inc. (NYSE: ONIT) is a leading non-bank financial services company providing mortgage servicing and originations solutions through its primary brands, PHH Mortgage and Liberty Reverse Mortgage. PHH Mortgage is one of the largest servicers in the country, focused on delivering a variety of servicing and lending programs to consumers and business clients. Liberty is one of the nation’s largest reverse mortgage lenders dedicated to providing loans that help customers meet their personal and financial needs. We are headquartered in West Palm Beach, Florida, with offices and operations in the United States, the U.S. Virgin Islands, India and the Philippines, and have been serving our customers since 1988. For additional information, please visit onitygroup.com.

PHH Mortgage and Liberty Reverse Mortgage are equal housing lenders.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by a reference to a future period or by the use of forward-looking terminology. Forward-looking statements are typically identified by words such as “expect”, “believe”, “foresee”, “anticipate”, “intend”, “estimate”, “goal”, “strategy”, “plan” “target” and “project” or conditional verbs such as “will”, “may”, “should”, “could” or “would” or the negative of these terms, although not all forward-looking statements contain these words, and includes statements in this press release regarding the anticipated benefits of the EquityIQ product to PHH’s wholesale partners and clients and the ability of PHH to continue expanding product options.

Forward-looking statements involve a number of assumptions, risks and uncertainties that could cause actual results to differ materially. In the past, actual results have differed from those suggested by forward looking statements and this may happen again. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, changes in market conditions, the industry in which we operate, and our business, the actions of governmental entities and regulators, developments in our litigation matters, and other risks and uncertainties detailed in our reports and filings with the SEC, including our annual report on Form 10-K for the year ended December 31, 2024. Anyone wishing to understand Onity Group Inc.’s business should review our SEC filings. Our forward-looking statements speak only as of the date they are made and, we disclaim any obligation to update or revise forward-looking statements whether as a result of new information, future events or otherwise.

For Further Information Contact:

Dico Akseraylian, SVP, Corporate Communications
(856) 917-0066
mediarelations@onitygroup.com

The MIL Network –

April 23, 2025

MIL-OSI: Hanmi Reports 2025 First Quarter Results

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, April 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 first quarter of 2025.

Net income for the first quarter of 2025 was $17.7 million, or $0.58 per diluted share, unchanged from the fourth quarter of 2024. The return on average assets for the first quarter of 2025 was 0.94% and the return on average equity was 8.92%, compared with a return on average assets of 0.93% and a return on average equity of 8.89% for the fourth quarter of 2024.

CEO Commentary
“Our team delivered strong results in the first quarter with solid operating performance across all of our business lines,” said Bonnie Lee, President and Chief Executive Officer. “We achieved our third consecutive quarter of net interest margin expansion, up 11 basis points to 3.02%, primarily driven by lower funding costs.”

“Deposits increased 3% driven by new commercial accounts and contributions from our newly opened branches, a testament to our core relationship-based banking model. Loan production was solid, fueled by healthy originations in residential mortgages and our SBA business. Importantly, we maintained our strong credit quality, and continued to effectively manage our operating expenses, resulting in our best quarterly efficiency ratio since the fourth quarter of 2023.”

“Overall, our first quarter results were well-balanced and reflected continued growth and positive momentum, including the successful opening of a new branch in the Atlanta region. Despite elevated macroeconomic uncertainty, our team’s focus, discipline, and commitment to providing exceptional service and market leading products positions us well to deliver long-term value to our shareholders.”

First Quarter 2025 Highlights:

First quarter net income was $17.7 million, or $0.58 per diluted share, unchanged from fourth quarter of 2024. Preprovision net revenues increased 5.9% from the prior quarter reflecting growth in net interest income, an expanding net interest margin, a solid contribution from fee-based activities, and disciplined expense management.
Loans receivable were $6.28 billion at March 31, 2025, up 0.5% from the end of the fourth quarter of 2024; loan production for the first quarter was $345.9 million, with a weighted average interest rate of 7.35%, compared with loan production for the fourth quarter of $339.0 million, with a weighted average interest rate of 7.37%.
Deposits were $6.62 billion at March 31, 2025, up 2.9% from the end of the fourth quarter of 2024; noninterest-bearing demand deposits at March 31, 2025 were 31.2% of total deposits.
Net interest income for the first quarter was $55.1 million, up 3.1% from the fourth quarter of 2024. Net interest margin (taxable equivalent) increased 11 basis points to 3.02%; the average yield on loans declined two basis points to 5.95%, while the cost of interest-bearing deposits fell 27 basis points to 3.69%.
Credit loss expense for the first quarter was $2.7 million, an increase from $0.9 million for the prior quarter. The allowance for credit losses increased $0.5 million to $70.6 million at March 31, 2025, or 1.12% of loans. For the first quarter, net loan charge-offs were $1.9 million, or 0.13% of average loans (annualized).
Nonperforming loans were $35.6 million at March 31, 2025, or 0.57% of loans. Criticized loans decreased to $164.9 million, as special mention loans decreased to $118.4 million, while classified loans increased to $46.5 million.

For more information about Hanmi, please see the Q1 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
	March 31,			December 31,			September 30,			June 30,			March 31,			Q1-25			Q1-25
	2025			2024			2024			2024			2024			vs. Q4-24			vs. Q1-24

Net income	$	17,672		$	17,695		$	14,892		$	14,451		$	15,164		$	(23	)	$	2,508
Net income per diluted common share	$	0.58		$	0.58		$	0.49		$	0.48		$	0.50		$	–		$	0.08

Assets	$	7,729,035		$	7,677,925		$	7,712,299		$	7,586,347		$	7,512,046		$	51,110		$	216,989
Loans receivable	$	6,282,189		$	6,251,377		$	6,257,744		$	6,176,359		$	6,177,840		$	30,812		$	104,349
Deposits	$	6,619,475		$	6,435,776		$	6,403,221		$	6,329,340		$	6,376,060		$	183,699		$	243,415

Return on average assets		0.94	%		0.93	%		0.79	%		0.77	%		0.81	%		0.01			0.13
Return on average stockholders’ equity		8.92	%		8.89	%		7.55	%		7.50	%		7.90	%		0.03			1.02

Net interest margin		3.02	%		2.91	%		2.74	%		2.69	%		2.78	%		0.11			0.24
Efficiency ratio ⁽¹⁾		55.69	%		56.79	%		59.98	%		62.24	%		62.42	%		-1.10			-6.73

Tangible common equity to tangible assets ⁽²⁾		9.59	%		9.41	%		9.42	%		9.19	%		9.23	%		0.18			0.36
Tangible common equity per common share ⁽²⁾	$	24.49		$	23.88		$	24.03		$	22.99		$	22.86			0.61			1.63


⁽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 first quarter was $55.1 million, up 3.1% from $53.4 million for the fourth quarter of 2024. The increase was primarily due to a decrease in deposit interest expense from a decrease in deposit rates. The average rate paid on interest-bearing deposits for the fourth quarter decreased 27 basis points to 3.69% from 3.96% for the fourth quarter of 2024, primarily due to the decrease in the average cost of time deposits to 4.17% for the first quarter from 4.55% for the fourth quarter of 2024. The average balance of interest-bearing deposits increased to $4.46 billion for the first quarter of 2025 from $4.36 billion for the fourth quarter. The average balance of time deposits was $2.35 billion for the first quarter of 2025, essentially unchanged from the fourth quarter. The average balance of noninterest-bearing deposits for the first quarter decreased to $1.90 billion from $1.97 billion for the fourth quarter of 2024. Net interest margin (taxable equivalent) for the first quarter was 3.02%, up 11 basis points from 2.91% for the fourth quarter of 2024.

	For the Three Months Ended (in thousands)										Percentage Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25		Q1-25
Net Interest Income	2025		2024		2024		2024		2024		vs. Q4-24		vs. Q1-24

Interest and fees on loans receivable ⁽¹⁾	$	90,887	$	91,545	$	92,182	$	90,752	$	91,674	-0.7	%	-0.9	%
Interest on securities		6,169		5,866		5,523		5,238		4,955	5.2	%	24.5	%
Dividends on FHLB stock		360		360		356		357		361	0.0	%	-0.3	%
Interest on deposits in other banks		1,841		2,342		2,356		2,313		2,604	-21.4	%	-29.3	%
Total interest and dividend income	$	99,257	$	100,113	$	100,417	$	98,660	$	99,594	-0.9	%	-0.3	%

Interest on deposits		40,559		43,406		47,153		46,495		45,638	-6.6	%	-11.1	%
Interest on borrowings		2,024		1,634		1,561		1,896		1,655	23.9	%	22.3	%
Interest on subordinated debentures		1,582		1,624		1,652		1,649		1,646	-2.6	%	-3.9	%
Total interest expense		44,165		46,664		50,366		50,040		48,939	-5.4	%	-9.8	%
Net interest income	$	55,092	$	53,449	$	50,051	$	48,620	$	50,655	3.1	%	8.8	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended (in thousands)										Percentage Change
Average Earning Assets and Interest-bearing Liabilities	Mar 31, 2025		Dec 31, 2024		Sep 30, 2024		Jun 30, 2024		Mar 31, 2024		Q1-25 vs. Q4-24		Q1-25 vs. Q1-24
Loans receivable ⁽¹⁾	$	6,189,531	$	6,103,264	$	6,112,324	$	6,089,440	$	6,137,888	1.4	%	0.8	%
Securities		1,001,499		998,313		986,041		979,671		969,520	0.3	%	3.3	%
FHLB stock		16,385		16,385		16,385		16,385		16,385	0.0	%	0.0	%
Interest-bearing deposits in other banks		176,028		204,408		183,027		180,177		201,724	-13.9	%	-12.7	%
Average interest-earning assets	$	7,383,443	$	7,322,370	$	7,297,777	$	7,265,673	$	7,325,517	0.8	%	0.8	%

Demand: interest-bearing	$	79,369	$	79,784	$	83,647	$	85,443	$	86,401	-0.5	%	-8.1	%
Money market and savings		2,037,224		1,934,540		1,885,799		1,845,870		1,815,085	5.3	%	12.2	%
Time deposits		2,345,346		2,346,363		2,427,737		2,453,154		2,507,830	0.0	%	-6.5	%
Average interest-bearing deposits		4,461,939		4,360,687		4,397,183		4,384,467		4,409,316	2.3	%	1.2	%
Borrowings		179,444		141,604		143,479		169,525		162,418	26.7	%	10.5	%
Subordinated debentures		130,718		130,567		130,403		130,239		130,088	0.1	%	0.5	%
Average interest-bearing liabilities	$	4,772,101	$	4,632,858	$	4,671,065	$	4,684,231	$	4,701,822	3.0	%	1.5	%

Average Noninterest Bearing Deposits
Demand deposits – noninterest bearing	$	1,895,953	$	1,967,789	$	1,908,833	$	1,883,765	$	1,921,189	-3.7	%	-1.3	%

⁽¹⁾Includes loans held for sale.

	For the Three Months Ended										Yield/Rate Change
Average Yields	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25	Q1-25
and Rates	2025		2024		2024		2024		2024		vs. Q4-24	vs. Q1-24
Loans receivable ⁽¹⁾	5.95	%	5.97	%	6.00	%	5.99	%	6.00	%	-0.02	-0.05
Securities ⁽²⁾	2.49	%	2.38	%	2.27	%	2.17	%	2.07	%	0.11	0.42
FHLB stock	8.92	%	8.75	%	8.65	%	8.77	%	8.87	%	0.17	0.05
Interest-bearing deposits in other banks	4.24	%	4.56	%	5.12	%	5.16	%	5.19	%	-0.32	-0.95
Interest-earning assets	5.45	%	5.45	%	5.48	%	5.46	%	5.47	%	0.00	-0.02

Interest-bearing deposits	3.69	%	3.96	%	4.27	%	4.27	%	4.16	%	-0.27	-0.47
Borrowings	4.57	%	4.59	%	4.33	%	4.50	%	4.10	%	-0.02	0.47
Subordinated debentures	4.84	%	4.97	%	5.07	%	5.07	%	5.06	%	-0.13	-0.22
Interest-bearing liabilities	3.75	%	4.01	%	4.29	%	4.30	%	4.19	%	-0.26	-0.44

Net interest margin (taxable equivalent basis)	3.02	%	2.91	%	2.74	%	2.69	%	2.78	%	0.11	0.24

Cost of deposits	2.59	%	2.73	%	2.97	%	2.98	%	2.90	%	-0.14	-0.31

⁽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 first quarter was $2.7 million, compared with $0.9 million for the fourth quarter of 2024. 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 first quarter increased $0.3 million, or 5.0%, to $7.7 million from $7.4 million for the fourth quarter of 2024. The increase was primarily due to a $0.6 million increase on gains from the sale of SBA loans. Gains on sales of SBA loans were $2.0 million for the first quarter of 2025, compared with $1.4 million for the fourth quarter of 2024. The volume of SBA loans sold for the first quarter increased to $32.2 million from $21.6 million for the fourth quarter of 2024, while trade premiums were 7.82% for the first quarter of 2025 compared with 8.53% for the fourth quarter. Mortgage loans sold for the first quarter were $10.0 million, with a premium of 2.50%, compared with $18.3 million and 1.96% for the fourth quarter. Gains on mortgage loans sold were $0.2 million for the first quarter, compared with $0.3 million for the fourth quarter.

	For the Three Months Ended (in thousands)										Percentage Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25		Q1-25
Noninterest Income	2025		2024		2024		2024		2024		vs. Q4-24		vs. Q1-24
Service charges on deposit accounts	$	2,217	$	2,192	$	2,311	$	2,429	$	2,450	1.1	%	-9.5	%
Trade finance and other service charges and fees		1,396		1,364		1,254		1,277		1,414	2.3	%	-1.3	%
Servicing income		732		668		817		796		712	9.6	%	2.8	%
Bank-owned life insurance income		309		316		320		638		304	-2.2	%	1.6	%
All other operating income		897		1,037		1,008		908		928	-13.5	%	-3.3	%
Service charges, fees & other		5,551		5,577		5,710		6,048		5,808	-0.5	%	-4.4	%

Gain on sale of SBA loans		2,000		1,443		1,544		1,644		1,482	38.6	%	35.0	%
Gain on sale of mortgage loans		175		337		324		365		443	-48.1	%	-60.5	%
Gain on sale of bank premises		–		–		860		–		–	0.0	%	0.0	%
Total noninterest income	$	7,726	$	7,357	$	8,438	$	8,057	$	7,733	5.0	%	-0.1	%

Noninterest expense for the first quarter increased $0.5 million to $35.0 million from $34.5 million for the fourth quarter of 2024. The increase was primarily due to a $1.6 million gain on the sale of an other-real-estate-owned property in the fourth quarter. Absent this gain, first quarter noninterest expense was down 3.2% sequentially due to decreases in professional fees, advertising and promotion, and other operating expenses, partially offset by a $0.5 million increase in salaries and benefits, which reflected seasonal first quarter increases. All other operating expenses decreased $0.7 million for the first quarter primarily due to the absence of a fourth quarter $0.5 million charge related to an SBA loan acquired in a previous acquisition. The efficiency ratio improved during the first quarter to 55.7%, compared with 56.8% for the fourth quarter of 2024.

	For the Three Months Ended (in thousands)												Percentage Change
	Mar 31,			Dec 31,			Sep 30,		Jun 30,		Mar 31,		Q1-25		Q1-25
	2025			2024			2024		2024		2024		vs. Q4-24		vs. Q1-24
Noninterest Expense
Salaries and employee benefits	$	20,972		$	20,498		$	20,851	$	20,434	$	21,585	2.3	%	-2.8	%
Occupancy and equipment		4,450			4,503			4,499		4,348		4,537	-1.2	%	-1.9	%
Data processing		3,787			3,800			3,839		3,686		3,551	-0.3	%	6.6	%
Professional fees		1,468			1,821			1,492		1,749		1,893	-19.4	%	-22.5	%
Supplies and communication		517			551			538		570		601	-6.2	%	-14.0	%
Advertising and promotion		585			821			631		669		907	-28.7	%	-35.5	%
All other operating expenses		3,175			3,847			2,875		3,251		3,160	-17.5	%	0.5	%
Subtotal		34,954			35,841			34,725		34,707		36,234	-2.5	%	-3.5	%

Branch consolidation expense		–			–			–		301		–	0.0	%	0.0	%
Other real estate owned expense (income)		41			(1,588	)		77		6		22	102.6	%	86.4	%
Repossessed personal property expense (income)		(11	)		281			278		262		189	-103.9	%	-105.8	%
Total noninterest expense	$	34,984		$	34,534		$	35,080	$	35,276	$	36,445	1.3	%	-4.0	%

Hanmi recorded a provision for income taxes of $7.4 million for the first quarter of 2025, compared with $7.6 million for the fourth quarter of 2024, representing an effective tax rate of 29.6% and 30.1%, respectively.

Financial Position
Total assets at March 31, 2025 increased 0.7%, or $51.1 million, to $7.73 billion from $7.68 billion at December 31, 2024. The increase reflected a $30.4 million increase in loans and a $24.2 million increase in cash, offset partially by a $7.6 million decrease in prepaid expenses and other assets.

Loans receivable, before allowance for credit losses, were $6.28 billion at March 31, 2025, up from $6.25 billion at December 31, 2024.

Loans held-for-sale were $11.8 million at March 31, 2025, up from $8.6 million at December 31, 2024. At the end of the first quarter, loans held-for-sale consisted of the guaranteed portion of SBA 7(a) loans.

	As of (in thousands)										Percentage Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25		Q1-25
	2025		2024		2024		2024		2024		vs. Q4-24		vs. Q1-24
Loan Portfolio
Commercial real estate loans	$	3,975,651	$	3,949,622	$	3,932,088	$	3,888,505	$	3,878,677	0.7	%	2.5	%
Residential/consumer loans		979,536		951,302		939,285		954,209		970,362	3.0	%	0.9	%
Commercial and industrial loans		854,406		863,431		879,092		802,372		774,851	-1.0	%	10.3	%
Equipment finance		472,596		487,022		507,279		531,273		553,950	-3.0	%	-14.7	%
Loans receivable		6,282,189		6,251,377		6,257,744		6,176,359		6,177,840	0.5	%	1.7	%
Loans held for sale		11,831		8,579		54,336		10,467		3,999	37.9	%	195.8	%
Total	$	6,294,020	$	6,259,956	$	6,312,080	$	6,186,826	$	6,181,839	0.5	%	1.8	%

	As of
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,
	2025		2024		2024		2024		2024
Composition of Loan Portfolio
Commercial real estate loans	63.1	%	63.1	%	62.3	%	62.9	%	62.7	%
Residential/consumer loans	15.6	%	15.2	%	14.9	%	15.4	%	15.7	%
Commercial and industrial loans	13.6	%	13.8	%	13.9	%	13.0	%	12.5	%
Equipment finance	7.5	%	7.8	%	8.0	%	8.5	%	9.0	%
Loans receivable	99.8	%	99.9	%	99.1	%	99.8	%	99.9	%
Loans held for sale	0.2	%	0.1	%	0.9	%	0.2	%	0.1	%
Total	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

New loan production was $345.9 million for the first quarter of 2025 with an average rate of 7.35%, while payoffs were $125.1 million during the quarter at an average rate of 6.40%.

Commercial real estate loan production for the first quarter of 2025 was $146.6 million. Commercial and industrial loan production was $42.3 million, SBA loan production was $55.2 million, equipment finance production was $46.7 million, and residential mortgage loan production was $55.0 million.

	For the Three Months Ended (in thousands)
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
	2025			2024			2024			2024			2024
New Loan Production
Commercial real estate loans	$	146,606		$	146,716		$	110,246		$	87,632		$	60,085
Residential/consumer loans		55,000			40,225			40,758			30,194			53,115
Commercial and industrial loans		42,344			60,159			105,086			59,007			50,789
Equipment finance		46,749			42,168			40,066			42,594			39,155
SBA loans		55,242			49,740			51,616			54,486			30,817
subtotal		345,941			339,008			347,772			273,913			233,961


Payoffs		(125,102	)		(137,933	)		(77,603	)		(148,400	)		(86,250	)
Amortization		(90,743	)		(60,583	)		(151,674	)		(83,640	)		(90,711	)
Loan sales		(42,193	)		(67,852	)		(43,868	)		(42,945	)		(55,321	)
Net line utilization		(53,901	)		(75,651	)		9,426			1,929			(4,150	)
Charge-offs & OREO		(3,190	)		(3,356	)		(2,668	)		(2,338	)		(2,123	)

Loans receivable-beginning balance		6,251,377			6,257,744			6,176,359			6,177,840			6,182,434
Loans receivable-ending balance	$	6,282,189		$	6,251,377		$	6,257,744		$	6,176,359		$	6,177,840

Deposits were $6.62 billion at the end of the first quarter of 2025, up $183.7 million, or 2.9%, from $6.44 billion at the end of the prior quarter. Driving the change was a $140.4 million increase in money market and savings deposits and a $72.8 million increase in time deposits, partially offset by a $30.0 million decrease in noninterest-bearing demand deposits. Noninterest-bearing demand deposits represented 31.2% of total deposits at March 31, 2025 and the loan-to-deposit ratio was 94.9%.

	As of (in thousands)										Percentage Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25		Q1-25
	2025		2024		2024		2024		2024		vs. Q4-24		vs. Q1-24
Deposit Portfolio
Demand: noninterest-bearing	$	2,066,659	$	2,096,634	$	2,051,790	$	1,959,963	$	1,933,060	-1.4	%	6.9	%
Demand: interest-bearing		80,790		80,323		79,287		82,981		87,374	0.6	%	-7.5	%
Money market and savings		2,073,943		1,933,535		1,898,834		1,834,797		1,859,865	7.3	%	11.5	%
Time deposits		2,398,083		2,325,284		2,373,310		2,451,599		2,495,761	3.1	%	-3.9	%
Total deposits	$	6,619,475	$	6,435,776	$	6,403,221	$	6,329,340	$	6,376,060	2.9	%	3.8	%

	As of
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,
	2025		2024		2024		2024		2024
Composition of Deposit Portfolio
Demand: noninterest-bearing	31.2	%	32.6	%	32.0	%	31.0	%	30.3	%
Demand: interest-bearing	1.2	%	1.2	%	1.2	%	1.3	%	1.4	%
Money market and savings	31.3	%	30.0	%	29.7	%	29.0	%	29.2	%
Time deposits	36.3	%	36.2	%	37.1	%	38.7	%	39.1	%
Total deposits	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%

Stockholders’ equity at March 31, 2025 was $751.5 million, up $19.3 million from $732.2 million at December 31, 2024. The increase included $9.5 million in net income, net of dividends paid, for the first quarter. In addition, the increase in stockholders’ equity included a $10.4 million decrease in unrealized after-tax losses on securities available for sale, and a $0.3 million decrease in unrealized after-tax losses on cash flow hedges, due to changes in interest rates during the first quarter of 2025. Hanmi also repurchased 50,000 shares of common stock at a cost of $1.1 million, for an average share price of $22.49, during the quarter. At March 31, 2025, 1,180,500 shares remain under Hanmi’s share repurchase program. Tangible common stockholders’ equity was $740.5 million, or 9.59% of tangible assets at March 31, 2025 compared with $721.1 million, or 9.41% 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 March 31, 2025, Hanmi’s preliminary common equity tier 1 capital ratio was 12.13% and its total risk-based capital ratio was 15.29%, compared with 12.11% and 15.24%, respectively, at the end of the prior quarter.

	As of										Ratio Change
	Mar 31,		Dec 31,		Sep 30,		Jun 30,		Mar 31,		Q1-25	Q1-25
	2025		2024		2024		2024		2024		vs. Q4-24	vs. Q1-24
Regulatory Capital ratios ⁽¹⁾
Hanmi Financial
Total risk-based capital	15.29	%	15.24	%	15.03	%	15.24	%	15.20	%	0.05	0.09
Tier 1 risk-based capital	12.47	%	12.46	%	12.29	%	12.46	%	12.40	%	0.01	0.07
Common equity tier 1 capital	12.13	%	12.11	%	11.95	%	12.11	%	12.05	%	0.02	0.08
Tier 1 leverage capital ratio	10.67	%	10.63	%	10.56	%	10.51	%	10.36	%	0.04	0.31
Hanmi Bank
Total risk-based capital	14.48	%	14.43	%	14.27	%	14.51	%	14.50	%	0.05	-0.02
Tier 1 risk-based capital	13.35	%	13.36	%	13.23	%	13.47	%	13.44	%	-0.01	-0.09
Common equity tier 1 capital	13.35	%	13.36	%	13.23	%	13.47	%	13.44	%	-0.01	-0.09
Tier 1 leverage capital ratio	11.49	%	11.47	%	11.43	%	11.41	%	11.29	%	0.02	0.20

⁽¹⁾Preliminary ratios for March 31, 2025

Asset Quality
Loans 30 to 89 days past due and still accruing were 0.28% of loans at the end of the first quarter of 2025, compared with 0.30% at the end of the prior quarter.

Criticized loans totaled $164.9 million at March 31, 2025, down from $165.3 million at the end of the fourth quarter of 2024. The $0.4 million decrease resulted from a $21.2 million decrease in special mention loans, partially offset by a $20.8 million increase in classified loans. The $21.2 million decrease in special mention loans included loan upgrades of $20.5 million and amortization/paydowns of $0.9 million, offset by additions of $0.2 million. The $20.8 million increase in classified loans resulted from $22.8 million of loan downgrades and $3.4 million of equipment financing downgrades. Loan downgrades were primarily the result of a $20.0 million syndicated commercial real estate office loan designated as nonaccrual during the first quarter of 2025. Additions were offset by $2.7 million of equipment financing charge-offs, $1.1 million of payoffs, $1.0 million of amortization/paydowns, $0.3 million of loan charge-offs and $0.3 million of loan upgrades.

Nonperforming loans were $35.6 million at March 31, 2025, up from $14.3 million at the end of the prior quarter. The $21.3 million increase primarily reflects additions of $26.1 million, offset by charge-offs of $3.0 million, pay-offs of $0.8 million, $0.9 million in paydowns, and loan upgrades of $0.1 million. Additions included $23.0 million of loans and $3.1 million of equipment financing agreements. Loan additions were driven primarily by the previously mentioned $20.0 million commercial real estate loan designated as nonaccrual during the first quarter of 2025.

Nonperforming assets were $35.7 million at March 31, 2025, up from $14.4 million at the end of the prior quarter. As a percentage of total assets, nonperforming assets were 0.46% at March 31, 2025, and 0.19% at the end of the prior quarter.

Gross charge-offs for the first quarter of 2025 were $3.2 million, compared with $3.4 million for the preceding quarter. Charge-offs included $2.8 million on equipment financing agreements. Recoveries of previously charged-off loans were $1.3 million in the first quarter of 2025, which included $0.8 million of recoveries on equipment financing agreements. As a result, there were $1.9 million of net charge-offs for the first quarter of 2025, compared to net recoveries of $0.1 million for the prior quarter.

The allowance for credit losses was $70.6 million at March 31, 2025, compared with $70.1 million at December 31, 2024. Specific allowances for loans increased $5.6 million because of a $6.2 million specific allowance on the previously mentioned $20.0 million commercial real estate loan designated as nonaccrual during the first quarter of 2025, and collectively evaluated allowances decreased $5.2 million. The ratio of the allowance for credit losses to loans was 1.12% at March 31, 2025 and at the end of the prior quarter.

	As of or for the Three Months Ended (in thousands)															Amount Change
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,			Q1-25			Q1-25
	2025			2024			2024			2024			2024			vs. Q4-24			vs. Q1-24
Asset Quality Data and Ratios

Delinquent loans:
Loans, 30 to 89 days past due and still accruing	$	17,312		$	18,454		$	15,027		$	13,844		$	15,839		$	(1,142	)	$	1,473
Delinquent loans to total loans		0.28	%		0.30	%		0.24	%		0.22	%		0.26	%		(0.02	)		0.02

Criticized loans:
Special mention	$	118,380		$	139,612		$	131,575		$	36,921		$	62,317		$	(21,232	)	$	56,063
Classified		46,519			25,683			28,377			33,945			23,670			20,836			22,849
Total criticized loans ⁽¹⁾	$	164,899		$	165,295		$	159,952		$	70,866		$	85,987		$	(396	)	$	78,912

Criticized loans to total loans		2.62	%		2.64	%		2.56	%		1.15	%		1.39	%		(0.02	)		1.23

Nonperforming assets:
Nonaccrual loans	$	35,459		$	14,272		$	15,248		$	19,245		$	14,025		$	21,187		$	21,434
Loans 90 days or more past due and still accruing		112			–			242			–			–			112			112
Nonperforming loans ⁽²⁾		35,571			14,272			15,490			19,245			14,025			21,299			21,546
Other real estate owned, net		117			117			772			772			117			–			–
Nonperforming assets ⁽³⁾	$	35,688		$	14,389		$	16,262		$	20,017		$	14,142		$	21,299		$	21,546

Nonperforming assets to assets ⁽²⁾		0.46	%		0.19	%		0.21	%		0.26	%		0.19	%		0.27			0.27
Nonperforming loans to total loans		0.57	%		0.23	%		0.25	%		0.31	%		0.23	%		0.34			0.34

⁽¹⁾Includes nonaccrual loans of $34.4 million, $13.4 million, $13.6 million, $18.4 million, and $14.0 million as of Q1-25, Q4-24, Q3-24, Q2-24, and Q1-24, respectively.
⁽²⁾Excludes a $27.2 million nonperforming loan held-for-sale as of September 30, 2024.
⁽³⁾Excludes repossessed personal property of $0.7 million, $0.6 million, $1.2 million, $1.2 million, and $1.3 million as of Q1-25, Q4-24, Q3-24, Q2-24, and Q1-24, respectively.

	As of or for the Three Months Ended (in thousands)
	Mar 31,			Dec 31,			Sep 30,			Jun 30,			Mar 31,
	2025			2024			2024			2024			2024
Allowance for credit losses related to loans:
Balance at beginning of period	$	70,147		$	69,163		$	67,729		$	68,270		$	69,462
Credit loss expense (recovery) on loans		2,396			855			2,312			1,248			404
Net loan (charge-offs) recoveries		(1,946	)		129			(878	)		(1,789	)		(1,596	)
Balance at end of period	$	70,597		$	70,147		$	69,163		$	67,729		$	68,270

Net loan charge-offs (recoveries) to average loans ⁽¹⁾		0.13	%		-0.01	%		0.06	%		0.12	%		0.10	%
Allowance for credit losses to loans		1.12	%		1.12	%		1.11	%		1.10	%		1.11	%

Allowance for credit losses related to off-balance sheet items:
Balance at beginning of period	$	2,074		$	1,984		$	2,010		$	2,297		$	2,474
Credit loss expense (recovery) on off-balance sheet items		325			90			(26	)		(287	)		(177	)
Balance at end of period	$	2,399		$	2,074		$	1,984		$	2,010		$	2,297

Unused commitments to extend credit	$	896,282		$	782,587		$	739,975		$	795,391		$	792,769

⁽¹⁾Annualized

Corporate Developments
On January 28, 2025, Hanmi’s Board of Directors declared a cash dividend on its common stock for the 2025 first quarter of $0.27 per share. Hanmi paid the dividend on February 26, 2025, to stockholders of record as of the close of business on February 10, 2025.

Earnings Conference Call
Hanmi Bank will host its first quarter 2025 earnings conference call today, April 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 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;
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 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)

	March 31,			December 31,			Percentage			March 31,			Percentage
	2025			2024			Change			2024			Change
Assets
Cash and due from banks	$	329,003		$	304,800			7.9	%	$	256,038			28.5	%
Securities available for sale, at fair value		907,011			905,798			0.1	%		872,190			4.0	%
Loans held for sale, at the lower of cost or fair value		11,831			8,579			37.9	%		3,999			195.8	%
Loans receivable, net of allowance for credit losses		6,211,592			6,181,230			0.5	%		6,109,570			1.7	%
Accrued interest receivable		23,536			22,937			2.6	%		23,032			2.2	%
Premises and equipment, net		20,866			21,404			-2.5	%		21,952			-4.9	%
Customers’ liability on acceptances		552			1,226			-55.0	%		161			242.9	%
Servicing assets		6,422			6,457			-0.5	%		6,890			-6.8	%
Goodwill and other intangible assets, net		11,031			11,031			0.0	%		11,074			-0.4	%
Federal Home Loan Bank (“FHLB”) stock, at cost		16,385			16,385			0.0	%		16,385			0.0	%
Bank-owned life insurance		57,476			57,168			0.5	%		56,639			1.5	%
Prepaid expenses and other assets		133,330			140,910			-5.4	%		134,116			-0.6	%
Total assets	$	7,729,035		$	7,677,925			0.7	%	$	7,512,046			2.9	%

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	2,066,659		$	2,096,634			-1.4	%	$	1,933,060			6.9	%
Interest-bearing		4,552,816			4,339,142			4.9	%		4,443,000			2.5	%
Total deposits		6,619,475			6,435,776			2.9	%		6,376,060			3.8	%
Accrued interest payable		29,646			34,824			-14.9	%		38,007			-22.0	%
Bank’s liability on acceptances		552			1,226			-55.0	%		161			242.9	%
Borrowings		117,500			262,500			-55.2	%		172,500			-31.9	%
Subordinated debentures		130,799			130,638			0.1	%		130,165			0.5	%
Accrued expenses and other liabilities		79,578			80,787			-1.5	%		92,053			-13.6	%
Total liabilities		6,977,550			6,945,751			0.5	%		6,808,946			2.5	%

Stockholders’ equity:
Common stock		34			34			0.0	%		34			0.0	%
Additional paid-in capital		591,942			591,069			0.1	%		587,687			0.7	%
Accumulated other comprehensive income		(60,002	)		(70,723	)		15.2	%		(76,890	)		22.0	%
Retained earnings		360,289			350,869			2.7	%		326,526			10.3	%
Less treasury stock		(140,778	)		(139,075	)		-1.2	%		(134,257	)		-4.9	%
Total stockholders’ equity		751,485			732,174			2.6	%		703,100			6.9	%
Total liabilities and stockholders’ equity	$	7,729,035		$	7,677,925			0.7	%	$	7,512,046			2.9	%

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

	Three Months Ended
	March 31,		December 31,		Percentage			March 31,		Percentage
	2025		2024		Change			2024		Change
Interest and dividend income:
Interest and fees on loans receivable	$	90,887	$	91,545		-0.7	%	$	91,674		-0.9	%
Interest on securities		6,169		5,866		5.2	%		4,955		24.5	%
Dividends on FHLB stock		360		360		0.0	%		361		-0.3	%
Interest on deposits in other banks		1,841		2,342		-21.4	%		2,604		-29.3	%
Total interest and dividend income		99,257		100,113		-0.9	%		99,594		-0.3	%
Interest expense:
Interest on deposits		40,559		43,406		-6.6	%		45,638		-11.1	%
Interest on borrowings		2,024		1,634		23.9	%		1,655		22.3	%
Interest on subordinated debentures		1,582		1,624		-2.6	%		1,646		-3.9	%
Total interest expense		44,165		46,664		-5.4	%		48,939		-9.8	%
Net interest income before credit loss expense		55,092		53,449		3.1	%		50,655		8.8	%
Credit loss expense		2,721		945		187.9	%		227		1098.7	%
Net interest income after credit loss expense		52,371		52,504		-0.3	%		50,428		3.9	%
Noninterest income:
Service charges on deposit accounts		2,217		2,192		1.1	%		2,450		-9.5	%
Trade finance and other service charges and fees		1,396		1,364		2.3	%		1,414		-1.3	%
Gain on sale of Small Business Administration (“SBA”) loans		2,000		1,443		38.6	%		1,482		35.0	%
Other operating income		2,113		2,358		-10.4	%		2,387		-11.5	%
Total noninterest income		7,726		7,357		5.0	%		7,733		-0.1	%
Noninterest expense:
Salaries and employee benefits		20,972		20,498		2.3	%		21,585		-2.8	%
Occupancy and equipment		4,450		4,503		-1.2	%		4,537		-1.9	%
Data processing		3,787		3,800		-0.3	%		3,551		6.6	%
Professional fees		1,468		1,821		-19.4	%		1,893		-22.5	%
Supplies and communications		517		551		-6.2	%		601		-14.0	%
Advertising and promotion		585		821		-28.7	%		907		-35.5	%
Other operating expenses		3,205		2,540		26.2	%		3,371		-4.9	%
Total noninterest expense		34,984		34,534		1.3	%		36,445		-4.0	%
Income before tax		25,113		25,327		-0.8	%		21,716		15.6	%
Income tax expense		7,441		7,632		-2.5	%		6,552		13.6	%
Net income	$	17,672	$	17,695		-0.1	%	$	15,164		16.5	%

Basic earnings per share:	$	0.59	$	0.59				$	0.50
Diluted earnings per share:	$	0.58	$	0.58				$	0.50

Weighted-average shares outstanding:
Basic		29,937,660		29,933,644					30,119,646
Diluted		30,058,248		30,011,773					30,119,646
Common shares outstanding		30,233,514		30,195,999					30,276,358

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

	Three Months Ended
	March 31, 2025							December 31, 2024							March 31, 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⁾	$	6,189,531		$	90,887	5.95	%	$	6,103,264		$	91,545	5.97	%	$	6,137,888		$	91,674	6.00	%
Securities ⁽²⁾		1,001,499			6,169	2.49	%		998,313			5,866	2.38	%		969,520			4,955	2.07	%
FHLB stock		16,385			360	8.92	%		16,385			360	8.75	%		16,385			361	8.87	%
Interest-bearing deposits in other banks		176,028			1,841	4.24	%		204,408			2,342	4.56	%		201,724			2,604	5.19	%
Total interest-earning assets		7,383,443			99,257	5.45	%		7,322,370			100,113	5.45	%		7,325,517			99,594	5.47	%

Noninterest-earning assets:
Cash and due from banks		53,670							54,678							58,382
Allowance for credit losses		(69,648	)						(69,291	)						(69,106	)
Other assets		249,148							246,744							244,700

Total assets	$	7,616,613						$	7,554,501						$	7,559,493

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Demand: interest-bearing	$	79,369		$	27	0.14	%	$	79,784		$	26	0.13	%	$	86,401		$	30	0.14	%
Money market and savings		2,037,224			16,437	3.27	%		1,934,540			16,564	3.41	%		1,815,085			16,553	3.67	%
Time deposits		2,345,346			24,095	4.17	%		2,346,363			26,816	4.55	%		2,507,830			29,055	4.66	%
Total interest-bearing deposits		4,461,939			40,559	3.69	%		4,360,687			43,406	3.96	%		4,409,316			45,638	4.16	%
Borrowings		179,444			2,024	4.57	%		141,604			1,634	4.59	%		162,418			1,655	4.10	%
Subordinated debentures		130,718			1,582	4.84	%		130,567			1,624	4.97	%		130,088			1,646	5.06	%
Total interest-bearing liabilities		4,772,101			44,165	3.75	%		4,632,858			46,664	4.01	%		4,701,822			48,939	4.19	%

Noninterest-bearing liabilities and equity:
Demand deposits: noninterest-bearing		1,895,953							1,967,789							1,921,189
Other liabilities		144,654							162,064							164,524
Stockholders’ equity		803,905							791,790							771,958

Total liabilities and stockholders’ equity	$	7,616,613						$	7,554,501						$	7,559,493

Net interest income				$	55,092						$	53,449						$	50,655

Cost of deposits						2.59	%						2.73	%						2.90	%
Net interest spread (taxable equivalent basis)						1.70	%						1.44	%						1.28	%
Net interest margin (taxable equivalent basis)						3.02	%						2.91	%						2.78	%



⁽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.

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)

	March 31,			December 31,			September 30,			June 30,			March 31,
Hanmi Financial Corporation	2025			2024			2024			2024			2024
Assets	$	7,729,035		$	7,677,925		$	7,712,299		$	7,586,347		$	7,512,046
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,031	)		(11,048	)		(11,074	)
Tangible assets	$	7,718,004		$	7,666,894		$	7,701,268		$	7,575,299		$	7,500,972

Stockholders’ equity ⁽¹⁾	$	751,485		$	732,174		$	736,709		$	707,059		$	703,100
Less goodwill and other intangible assets		(11,031	)		(11,031	)		(11,031	)		(11,048	)		(11,074	)
Tangible stockholders’ equity ⁽¹⁾	$	740,454		$	721,143		$	725,678		$	696,011		$	692,026

Stockholders’ equity to assets		9.72	%		9.54	%		9.55	%		9.32	%		9.36	%
Tangible common equity to tangible assets ⁽¹⁾		9.59	%		9.41	%		9.42	%		9.19	%		9.23	%

Common shares outstanding		30,233,514			30,195,999			30,196,755			30,272,110			30,276,358
Tangible common equity per common share	$	24.49		$	23.88		$	24.03		$	22.99		$	22.86


⁽¹⁾There were no preferred shares outstanding at the periods indicated.

Preprovision Net Revenues

Preprovision net revenues 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 revenues, management can better understand the Company’s true profitability and make more informed strategic decisions. Preprovision net revenues is calculated adding income tax expense and credit loss expense to net income. Management believes this financial measure highlights the Company’s revenue activities and operational efficiency, excluding unpredictable loan loss provisions.

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

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

											Amount Change
Hanmi Financial	March 31,		December 31,		September 30,		June 30,		March 31,		Q1-25		Q1-25
Corporation	2025		2024		2024		2024		2024		vs. Q4-24		vs. Q1-24
Net income	$	17,672	$	17,695	$	14,892	$	14,451	$	15,164
Add back:
Credit loss expense		2,721		945		2,286		961		227
Income tax expense		7,441		7,632		6,231		5,989		6,552
Preprovision net revenues	$	27,834	$	26,272	$	23,409	$	21,401	$	21,943	5.9	%	26.8	%

The MIL Network –

April 23, 2025

MIL-OSI Canada: Tribunal Initiates Final Injury Inquiry—Corrosion-resistant steel sheet from Türkiye

Source: Government of Canada News (2)

Ottawa, Ontario, April 22, 2025—The Canadian International Trade Tribunal today initiated an inquiry to determine whether the dumping of corrosion-resistant steel sheet originating in or exported from the Republic of Türkiye, by Borçelik Çelik Sanayi Ticaret A.Ş., has caused injury or retardation or is threatening to cause injury. This final injury inquiry was initiated further to a notice received from the Canada Border Services Agency stating that a preliminary determination had been made respecting the dumping of the above-mentioned goods.

On August 15, 2025, the Tribunal will determine whether the dumping has caused injury or retardation or is threatening to cause injury to the domestic industry.

The Tribunal is an independent quasi-judicial body that reports to Parliament through the Minister of Finance. It hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement and appeals of customs and excise tax rulings. When requested by the federal government, the Tribunal also provides advice on other economic, trade and tariff matters.

Any interested person, association or government that wishes to participate in the Tribunal’s inquiry may do so by filing Form I—Notice of Participation.

MIL OSI Canada News –

April 23, 2025

MIL-OSI Russia: World Economic Outlook Press Briefing

Source: IMF – News in Russian

April 22, 2025

Speakers:

Pierre‑Olivier Gourinchas, Director, Research Department, IMF
Petya Koeva Brooks, Deputy Director, Research Department, IMF
Deniz Igan, Division Chief, Research Department, IMF

Moderator:
Jose Luis De Haro, Communications Officer, IMF

Mr. De Haro: OK. I think we can start and we have a quorum. So good morning, everyone, and welcome. I want to welcome also those joining us online. I am Jose Luis de Haro with the Communications Department at the IMF and we are gathered here today for the presentation of our latest edition of the World Economic Outlook titled, “A Critical Juncture Amid Policy Shifts.” I hope by this time you all have had access to the document. If not, I am going to encourage you, as always, to go to IMF.org. There, you are going to find the document, the World Economic Outlook, also Pierre‑Olivier’s blog and many other assets, including the underlying data for some of the charts that are published on the World Economic Outlook.

I also want to plug in that we have a new database portal that I encourage you to use, and what’s best, that to discuss the new outlook that having here with us today, Pierre‑Olivier Gourinchas. He is the Economic Counsellor, the chief economist, and the Director of the Research Department. Next to him are Petya Koeva Brooks, she is the Deputy Director of the Research Department and last, but not least, we also have Deniz Igan, she is the division chief also with the Research Department.

Pierre‑Olivier, as usual is going to start with some opening remarks, and then we are going to open the floor to your questions. I just want to remind everyone that this press briefing, it’s on the record and that we also have simultaneous translation.

So let me stop here. Pierre‑Olivier, the floor is yours.

Mr. Gourinchas: Thank you, Jose. And good morning, everyone. The landscape has changed since our last World Economic Outlook update in January. We are entering a new era as the global economic system that has operated for the last 80 years is being reset. Since late January, many tariff announcements have been made, culminating on April 2, with near universal levies from the United States and counterresponses from some trading partners. The U.S. effective tariff rate has surged past levels reached more than 100 years ago, while tariff rates on the U.S. have also increased.

Beyond the abrupt increase in tariffs, the surge in policy uncertainty is a major driver of the economic outlook. If sustained, the increasing trade tensions and uncertainty will slow global growth significantly. Reflecting this complexity, our report presents a reference forecast which incorporates policy announcements up to April 4 by the U.S. and trading partners. Under these reference forecasts, global growth will reach 2.8 percent this year and 3 percent next year, a cumulative downgrade of about 0.8 percentage points relative to our January 2025 WEO update. Our report also offers a range of forecasts under different policy assumptions.

Under an alternative path that excludes the April tariff announcements, global growth would have seen only a modest downgrade to 3.2 percent this year. We will also use a model‑based forecast to incorporate the temporary suspension of most tariffs announced on April 9, together with the increase in bilateral tariffs between China and the U.S. to prohibitive levels. This pause, even if extended permanently, delivers a similar growth outlook as a reference forecast, 2.8 percent, even if some highly tariffed countries could benefit.

Now, while global growth remains well above recession levels, all regions are negatively impacted this year and next. And the global disinflation process continues, but at a slower pace with inflation revised up by 0.1 percentage point in both years. These trade tensions will greatly impact global trade. We project that global trade growth will be more than cut in half from 3.8 percent last year to 1.7 percent this year. The tariffs will play out differently in different countries. For the United States, the tariffs represent a supply shock that reduces productivity and output permanently and increases price pressures temporarily. This adds to an already weakening outlook and leads us to revise growth down by 0.9 percentage points to 1.8 percent, with a 0.4 percentage point downgrade from the tariffs only. While inflation is revised upwards.

For trading partners, tariffs act mostly as a negative external demand shock. Weakening activity and prices, even if some countries could benefit from trade diversion. This is why we have lowered our China growth forecast this year to 4 percent, while inflation is revised down by 0.8 percentage points, increasing deflationary pressures. All countries are negatively affected by the surge in trade policy uncertainty, as businesses cut purchases and investment, while financial institutions reassess their borrowers’ exposure. Uncertainty also increases because of the complex sectoral disruptions that tariffs could cause up and down supply chains, as we saw during the pandemic.

The effect of these shocks on exchange rates is complex. The tariffs could appreciate the US dollar, as in previous episodes. However, greater policy uncertainty, lower U.S. growth prospects, and an adjustment in the global demand for dollar assets are weighing down on the dollar.

Risks to the global economic have increased and are firmly to the downside.

First, while we are not projecting a global downturn, the risks it may happen this year have increased substantially, from 17 percent projected back in October to 30 percent now. An escalation of trade tensions would further depress growth. Financial conditions could also tighten, as markets react negatively to diminished growth prospects and increased uncertainty. On the flip side, growth prospects could immediately improve if countries ease from their current trade policy stance and promote a new, clear, and stable trade environment.

Addressing domestic imbalances can also help raise growth while contributing significantly to closing external imbalances. For Europe, this means spending more on public infrastructure to accelerate productivity growth. For China, it means boosting support for domestic demand. While for the U.S., it means stepping up fiscal consolidation.

Turning to policies. Our recommendations call for prudence and improved collaboration. Let me outline some key ones. First, an obvious priority is to restore trade policy stability. The global economy needs a clear, stable, and predictable trading environment, one that addresses some of the longstanding gaps in international trading rules. Monetary policy will need to remain agile and respond by tightening where inflation pressures re‑emerge, while easing where weak demand dominates. Monetary policy credibility will be key, especially where inflation expectations might de‑anchor. And central bank independence remains a cornerstone.

Many fiscal authorities will face new spending needs to bolster defense spending or to offset the trade dislocations, likely to come. Some of the poorest countries also hit with reduced official aid could experience debt distress. Yet debt levels are still elevated and most countries still need to rebuild fiscal space, including by implementing structural reforms. Support, where needed, should remain narrowly targeted and temporary. It is easier to turn on the fiscal tap than to turn it off. Where new spending needs are permanent, as for defense spending in some countries, planning for offsetting cuts elsewhere or new revenues should be made.

Finally, even if some of the grievances against our trading system have merit, we should all work toward fixing the system so that it can deliver better opportunities to all. Thank you.

Mr. De Haro: Thank you, Pierre‑Olivier. Before we open the floor to your questions, some ground rules. First of all, if you want to ask a question, raise your hand. If I call on you, please identify yourself and the media outlet you represent. Try to be succinct. Stick to one question. We want to answer as many questions as possible.

And also, a reminder. We are here to discuss the World Economic Outlook. Those questions regarding country programs, institutional issues are going to be better placed for the regional press briefings that are happening later this week and also the Managing Director’s press briefing this Thursday.

With that said, I want hands up. OK. So I am going to start here in the center. Then I am going to move the room to my left. Then to my right. I am going to start with the lady with the green jacket there.

QUESTION: Thank you.. Thanks so much for doing this.

Pierre‑Olivier, I wonder if you can speak a little bit to the fact that you haven’t called out a recession. And you know, we are hearing lots of economists in the United States and other places‑‑most recently yesterday, the IIF is now also forecasting a small recession in the second half of the year. What we see in the WEO is that the percentage of risk of a recession has increased pretty dramatically. Can you walk us through why you are not at this point calling a recession, for instance, likely in the United States and what it would take to tip it that way? Thanks.

Mr. Gourinchas: Thank you, Andrea.

So for the United States, we are projecting a significant slowdown. We are projecting growth will be at 1.8 percent in 2025. And that’s a 0.9 percentage‑point slowdown‑‑revision in our projections from January. But 1.9 percent is obviously not a recession. And the reason for this is is that we have a U.S. economy that, in our view, is coming from a position of strength. We had an economy that was growing very rapidly. We have a labor market that is still very robust. We have seen some signs of weakening and slowdown in the U.S. economy, even before the tariff announcements. So, in fact, the 0.9 percentage point downward revision that I just mentioned, only a part of this‑‑maybe 0.4 percentage points‑‑is coming from the tariffs. Some of that is also coming from weakening momentum. This was an economy that was doing very, very well but was self‑correcting and cooling off a bit on its own. And we were seeing already consumption numbers coming down. We are seeing consumer confidence coming down. So all of that was already factored in. But we are not seeing a recession in our reference forecast.

As you mentioned, Andrea, we are‑‑when we do our risk assessment, if you want, we are seeing the probability of a recession increasing, from about 25 percent back in October to around 40 percent when we assess it now.

Mr. De Haro: OK. I am going to move to this side. The lady here in red.

QUESTION: Good morning.

Pierre, I wanted to ask you about the downward pressure on the dollar now. To what extent you believe it can provide some relief from the pressure on highly indebted emerging economies with a large share of dollar‑denominated debt? And has this downward pressure on the dollar changed your outlook on all of those emerging economies that are still, you know, under the impact of the high debt‑‑as mentioned by the MD in previous meetings, where this high debt is really one of the impediments to growth? Thanks.

Mr. Gourinchas: Yes. So we are seeing a weakening of the dollar that is fairly broad‑based over the last few weeks, as I mentioned in my opening remarks, some of that is coming from the weaker growth prospects in the U.S. Some it is coming from the increased uncertainty. And it’s leading to a reassessment of the global demand for dollar assets. When we step back, we also have to realize we are coming from a position where, over the last few years, there have been tremendous capital inflows into U.S. markets, in particular, risk markets. That’s something that, of course, my colleague Tobias Adrian will talk about in the GFSR press conference. So we are seeing some adjustment, some contradiction. The markets are handling it. We don’t see signs of stress, even in currency markets.

Now, the interesting development is, what does it mean for emerging markets? And you are right to point out that, in the past, when the dollar would strengthen, that would not necessarily be good news for emerging markets because they have dollar‑denominated debts, so that increases their liabilities and the pressure on them to service their debts. And this can lead to some tightening of financial conditions. So we are not seeing that right now. And so that’s a plus. The flip side of this is, of course, the appreciation of some of these emerging markets’ currencies means that they are also losing a little bit on the competitiveness side, so there is maybe something that is a bit easier on the finance conditions, something that is not as easy on the trade side.

Finally, this is an environment of enormous uncertainty, increased volatility. And that I think is something that will dominate for many of the emerging markets. So when we are looking at our assessment, we are actually downgrading the emerging market economies for 2025 and 2026, most of them. Some of them may, as I mentioned, benefit. But overall, as a group, they are downgraded. While because they are also very plugged into the global supply chains, the uncertainty is leading to a pause in investment and activity, and they are going to suffer from the decline in demand for their products coming from the tariffs.

Mr. De Haro: OK. I am going to go with the gentleman here with the glasses.

QUESTION: Thank you. I just have one question. Could you elaborate a little bit on what will happen with the trade flows in your models? I saw that in the basic assumption, the exports from the U.S. are [breaking quite heavily but not that much from China. Why is this so?

And do I understand it right that this basic model does not yet integrate the additional hikes after ‑‑ happening after basically April 9, so above 100 percent on import tariffs by the U.S.? Thanks.

Mr. Gourinchas: So we are seeing a large impact on global trade coming from the tariffs and that’s going to be the case under any combination of tariffs where the effective tariff rates remains very elevated. And the reason why when we looked at the different scenarios that I mentioned, whether it’s a reference scenario or our April 9 scenario which includes lower tariffs on many countries but sharply increased tariffs between the U.S. and China. The overall impact on the global economy is not very different because the effective tariff rate is, if anything, even higher under that pause. So global trade is going to be significantly affected. The particular configuration of trade, which bilateral trade flows are going to be affected versus others that will depend on the final landscape in terms of tariffs so we can anticipate that there will be much lower bilateral trade under either the reference scenario or the April 9, between the U.S. and China. And that is weighing down on global trade growth. This is weighing down on global trade generally.

Mr. De Haro: OK. I am going to turn here to the center. I am going to go to the first row. I am going to go with the lady with the yellow bottle.

QUESTION: Thank you,

You have downgraded the U.K.’s growth forecast quite sharply and given the range of explanations, from higher tariff barriers to more domestic issues, like cost‑of‑living pressures. Out of those, so the global challenges versus domestic challenges, which one is weighing more heavily on the U.K.’s growth forecasts?

Mr. De Haro: OK we are going to open the round of U.K. questions so if you have questions on the U.K., raise your hand. And I will pass the mic to you. I see two there. Yep.

QUESTION: Hi.

In a world where everyone is warning about the impact of tariffs on U.S. inflation and how much it will raise U.S. prices, why do you have the U.K. with the highest inflation rate in the G‑7 this year? And do you believe tariffs will be inflationary or disinflationary for the U.K.?

Mr. De Haro: OK. Joe here in the first row.

QUESTION: Yeah. Thank you. Thank you very much. So Joel hills from ITV news. Obviously it’s impacting the tariffs are impacting the U.K. They are impacting most countries. I just wonder this, President Trump did say there would be some disruption. He suggested it would be sort of temporary. Is it possible that President Trump is actually a genius? That he knows something you do not?

Mr. De Haro: And I think we have a last question on the U.K. and this is going to be the last question on the U.K. There on the back of the room.

QUESTION: Yeah.

The U.K. inflation forecast is, you know, much higher than we expected it to be, 0.7 percent higher. Is that going to impact on lowering interest rates in the U.K.? And does that affect the growth rate, which seems to be rather optimistic, compared with some of the other European countries?

Mr. De Haro: OK. We are going to be done with the U.K. questions and then we will move along. So Pierre‑Olivier.

Mr. Gourinchas: Thank you. So many questions. Let me address them as best I can. First, on the revision for growth in the U.K. and inflation. So the tariffs are playing a role, as they are in most countries and uncertainty is also playing a role, as it is in all countries. And it’s weighing down on growth in the U.K. But there are some U.K.‑specific factors and I would say that in terms of the zero point 5 percentage point downward revision that we are saying for the U.K., the domestic factors are probably the biggest ones. And in particular, there is a lower carryover from weaker growth in the second half of last year. There is also some tightening of financial conditions, as interest rates have risen, longer‑term interest rates.

On inflation, the revision in inflation in the U.K. is coming, again, from domestic factors, and in particular some change in regulated energy prices. So that’s expected to be temporary but it’s also very U.K.‑specific. The effect of the tariffs on countries like the U.K., like it is on the EU or China is like a negative demand shock. It’s weakening activity but it’s also lowering price pressures, not increasing them.

Now, what is the impact of the tariffs in the medium and long term? Not just what’s going to happen this year and next but what’s going to happen longer term? Our assessment is it’s going to be negative. We have a box in our report that looks at the long‑term impact of the tariffs, if they are maintained. And it is negative for all regions, just like the short‑term impact. So we are seeing a negative impact in the short term, in the medium term, in the long term. Again, there are nuances. Some countries might benefit, depending on the particular configuration of tariffs. It might benefit from some trade diversion; but the broad picture is it’s negative for the outlook.

Now, our ‑‑ and I will end with that. Our forecast for 2025 is slightly higher than OBR’s forecast. Some of this has to do with some of the underlying monetary policy assumptions for the U.K. The bank‑‑

Our assumption for this year is that there are going to be four cuts through the year. One cut already happened. We expect three more.

Mr. De Haro: Thank you, Pierre‑Olivier. I am not going to forget about the people that are on WebEx, and I am going to pass a question there. I see Anton from TAS.

QUESTION: Good morning. Thank you for doing this.

Given the projected slowdown of Russia’s GDP growth from 4.1 in 2024 to 1.5 in 2025, what are the primary factors driving this sharp decline? And how sustainable is Russia’s growth model going forward? Thank you.

Mr. De Haro: Go ahead.

Mr. Gourinchas: Petya, would you like to answer?

Ms. Koeva Brooks: Sure. We are indeed expecting a slowdown in growth to 1.5 this year, and this, to a large extent is kind of the natural slowing of the economy after growing quite robustly in previous years. And also as a result of policy tightening that we have seen, both on the fiscal as well as on the monetary policy side. It is also due to the lower oil prices that have come about as a result of the‑‑as a response to the round of tariffs, as well as the uncertainty about global growth. So all these factors are behind that lower growth number, although I should point out that it is actually a slight upward revision, relative to what we had back in January. And the reason for that is that, again, we actually had seen upward surprises in 2024, which kind of carried into 2025.

When it comes to the medium‑term growth outlook, we do expect that to be relatively weak. We are‑‑we have penciled in growth number of about 1.2, which is down from 1.7 which is what we had before the start of the war.

Mr. De Haro: OK. Let’s continue. I am going to go again in the center and then I am going to go to that side. The lady with the glasses there.

QUESTION: Hi.

In Latin America, we received almost every country 10 percent. So I want to know about the impact of the tariffs in Latin America and if the impact is going to be limited, versus other regions, and when we are going to start to feeling this impact. Thank you.

Mr. De Haro: And before we answer the question, are there any questions on Mexico, Brazil, Argentina? OK. Argentina friends, go ahead.

QUESTION: Hello.

You’ve kept 5.5 growth projection that was decided in the latest program that Argentina signed with the IMF. I would like to know why you are not seeing so much impact yet about‑‑of this general context.

Mr. De Haro: OK. We can go ahead first with the Latin America overview and then we can go to Argentina.

Mr. Gourinchas: I will just say something briefly and then ask my colleague Petya to come in. So for Latin America, as a whole, we are saying activity that is largely driven by consumption on the back of resilient labor markets while investment remains somewhat sluggish. And the slowdown in our projection reflects the impact of tariffs and the global growth slowdown, of course, which is also affecting countries in the region. Policy uncertainty. And the withdrawal of fiscal stimulus and in some countries monetary policy tightening.

Ms. Koeva Brooks: I don’t have a lot to add. Just to say that the disinflation process has also slowed a bit, and this is also‑‑also makes the policy trade‑offs a bit more complicated with slow‑‑with growth slowing down and at the same time, you know, having still challenges on the inflation side.

Mr. De Haro: OK. So we are going to move on. I am going to ask the gentleman in the first row there because‑‑

Oh, sorry. Sorry. I forgot about Argentina. Please go ahead.

Ms. Koeva Brooks: We cannot forget about Argentina.

So the growth forecast for this year‑‑you are right‑‑we still have the upgrade of .5. And this is related to just the positive surprises that we had seen, in spite of a very strong fiscal adjustment, the recovery in confidence I think has definitely played a role in kind of driving us to have this forecast. That said, there are a number of risks related to tighter financial conditions, commodity prices, and a lot of others, which is true for many if not most other countries.

Mr. De Haro: OK. So now we can move on. I am going to go with the gentleman in the first row.

QUESTION: Thank you. In the October 2024 outlook you saw a stable but slow growth for Africa. What’s new now? And what kind of initiatives like the African Continental Free Trade Area do for African economies amidst these trade tensions?

Mr. De Haro: And before we answer, I think‑‑

QUESTION: Hi. Good morning.

One of the things that you mentioned in your report is the demographic shift and the rise in the silver economy. Africa, on the other hand, has the reverse of that. So what is your recommendation in the short and medium term on how to deal with some of these challenges pertaining to tariffs, monetary policy, and now currency exchange? Thank you.

Mr. De Haro: OK.

Mr. Gourinchas: OK. Thank you. I will just say one word about the outlook in sub‑Saharan Africa and then I will ask my colleague Deniz to come in to add more color and answer also the question on the demographic trends.

So regional growth in sub‑Saharan Africa improved significantly last year, to 4 percent. And it will ease in 2025. And this is in line with a softer global outlook. So we are seeing the same forces at play in the region, as we are seeing more globally. And a downturn‑‑and a downward revision in our projection that is of a similar magnitude at about 0.4 percentage point. Deniz?

Ms. Igan: Thank you for the question. So on the demographic shifts, our Chapter 2 basically points out that countries’ age structures are evolving at different rates, as you pointed out as well. We have most western economies, some Asian economies that are aging fast. And you know in a health way some of them. And then we have many sub‑Saharan African countries that have a very young population. And what the chapter shows is actually, there are important medium‑term consequences of that, both for growth, as well as external balances of countries.

In Africa’s case, basically, what we would see is a demographic dividend coming from having a young population. And the question then becomes how best to leverage that, how best to use that and channel it into growth. And the answer there, first and foremost, depends on the structural reforms, the investment that’s necessary on healthcare, on education, on human capital more generally and also international cooperation because our Chapter 3 looks more carefully into migration flows. And again, there, we see migration policy shifts in destination countries has spillovers for other countries. And this is especially true for emerging market economies and lower income economies. So, again, international cooperation there, making sure that growth dividends are utilized in the best way is what we delve into in the chapter.

Mr. De Haro: OK. I am going to go to the gentleman with‑‑raise your hand. Yeah. You. No, I am going back. Then I will go‑‑there you go.

QUESTION: OK. I have a question about China’s growth.

In your World Economic Outlook, you say China’s growth forecast has been cut to 4 percent for this year, which is a 0.6 percentage drop from an earlier projection. But China’s National Bureau of Statistics a couple of days ago predicted China’s growth GDP growth in the first quarter was 5.4 percent. So my question is, how do you see the disparity in the forecast? Is China more optimistic than you are? Thank you.

Mr. Gourinchas: Thank you. So, yes, we are revising our growth projections for China down by 0.6 percentage points, as you have noted. I should flag that this number does not incorporate the latest release for Q1. That came after we closed our round of projections. So this is not reflected there. And we will have to see how it affects our projections when we have our next round of WEO updates.

But let me give you a little bit of perspective on the rationale behind our revision for China. The tariff increase in tariffs especially since China is one of the countries that is facing the most elevated tariffs right now, is going to have a very significant impact in our projections on the Chinese economy. In fact, when we do a decomposition, which I showed during my opening remarks, the impact of the tariffs on the Chinese economy would be a negative 1.3 percentage point revision on growth.

So why do we only have 0.6? Well, because there are other factors that are helping to support Chinese growth in 2025 and 2026. One of which‑‑which is quite important‑‑is the fiscal support that has been announced since the beginning of the year. And that is adding up, something of the amount of 0.5 percentage points. So the impact of the current trade tensions is very significant. It’s partly offset. We expect it to remain quite significant also in 2026 when we also have a downward revision by about 0.5 percentage points.

The other side of this, where we are seeing the impact of the tariffs is on inflation, which is revised down. Our headline inflation projection for 2025 is actually at zero. So it’s down from 0.8 percent to zero. So China is facing stronger deflationary forces as a result of these trade tensions.

Mr. De Haro: OK. I am going to move to this side. The gentleman with the glasses here.

QUESTION: What impact did the oil price also have in exporting and importing countries in the Middle East? Thank you.

Mr. De Haro: Go ahead.

Mr. Gourinchas: So we have seen oil prices declining since our last projections, and the decline in oil prices in our and our interpretation is coming mostly from weaker global demand, so it’s the weakening of global activity that is driving the decline in prices. There has been some increase in supply coming from OPEC Plus countries, but broadly speaking, the decline is mostly coming from weaker demand.

So that is going to play out in ways you sort of would expect. The commodity exporters are going to face lower export revenues from the decline in oil prices. That’s going to weigh on their fiscal outlook, on their growth.

For those countries that are oil importers, it’s going to lower inflation pressures because that‑‑lower oil prices is going to feed into lower headline inflation. It’s going to also provide some modest support to economic activity there.

Deniz, anything to add on oil prices or‑‑or Petya?

Ms. Koeva Brooks: No, I don’t.

Mr. De Haro: OK. We are going to move to the center. I am going to get the gentleman with the white shirt there.

QUESTION: h I am not going to ask another question about the U.K., you will be pleased to know. Over the last week we have seen a number of attacks by the White House on the independence of the Federal Reserve. How destabilizing do you think this might be for financial markets?

Mr. Gourinchas: So central banks are facing a delicate moment. As I have explained in many countries, the impact of the tariffs is going to be to increase recessionary forces and it is going to lower price pressures. And that will help central banks cut interest rates faster and provide some support to their economies. But in other countries ‑‑ and in our projections, the U.S. is in that category‑‑the tariffs are going to increase price pressures. Price pressures in the U.S. are increasing for other reasons as well. Service prices have been quite‑‑inflation of service prices have been quite strong. And that is something that we are seeing already. But the tariffs are likely to increase price pressures. We are projecting inflation to remain at 3 percent in the U.S. this year, the same level as last year, headline inflation.

So in that context, if you also think about where we are coming from, we are coming from a period of very elevated inflation. We are just coming off the cost‑of‑living crisis, a surge in inflation rates to double digits that we haven’t seen in more than a generation. So the critical thing is to make sure that inflation expectations remain anchored, that everyone remains convinced that central banks will do what is necessary to bring inflation back to central bank targets in an orderly manner. And central banks have instruments to do this. They have their interest rate instruments. They have various instruments of monetary policy. But one critical aspect of what they do is coming from their credibility. So central banks need to remain credible. And part of that credibility is built upon their central bank independence. And so from that perspective, it’s very important to preserve that.

Mr. De Haro: OK. We are going to have time for two questions. One of them is going back to WebEx. I see Weier, please. Come in.

QUESTION: Yes.I have a question.

You mentioned that the global economic system is being reset. And I am not sure if one of the early signs in the financial markets, as we see that the markets moving from American exceptionalism to the sort of sell the U.S. narrative. So could you assess the implications for the financial markets and the world economy, as a whole?

Mr. Gourinchas: Yeah, well we have seen some volatility in the markets, of course, whenever there is going to be potentially a significant change in the economic structure of the global economy. I think we are bound to see some reassessment. And investors are going to try to figure out what’s happening, and that’s going to inject volatility. And we are seeing some of that.

The good news is a lot of that volatility we have seen in the last few weeks has not led to significant market dislocations or market stress to levels that would, for instance, have necessitated the interventions by central banks around the world.

So whether you are looking at equity markets, whether you are looking at bond markets, whether you are looking at currency markets, what we are saying is a reassessment of the world we are in now and that means that there is a reassessment of valuations of risk assets, of different currencies. But that is happening in an orderly manner. So from that perspective, we are seeing a system that is quite resilient, that remained resilient but, of course, we are watching carefully and there has been some tightening of financial conditions and that’s something to be looking out for. We want to make sure that it doesn’t get to a level where the stress in the financial system would become too extreme.

Mr. De Haro: OK. The lady here in the first row has been waiting patiently. Please go ahead.

QUESTION: Thank you, Jose. I want to ask about the trading tensions impact on low‑income countries. You mentioned there are like downgrading for emerging markets but how about like those small countries who have lower income as a group, have you assessed the particular impact on them in these ongoing trade tensions? Thank you.

Mr. Gourinchas: OK. Well thanks. For low‑income countries as a group, we are also seeing a downgrade in which we report in our report of 0.4 percentage points. We are expecting growth of 4.2 percent in 2025. So the 0.4 is very similar to what we are seeing at the aggregate levels, 0.5. So from that perspective it looks quite the same. However, there are also a lot of differences across countries, and when we look more carefully, you might see some vulnerable countries, especially in sub‑Saharan Africa. But elsewhere as well‑‑who could face very challenging conditions as a result of the tariffs in an environment in which many of the countries, low‑income countries have been facing a funding squeeze for a number of years now, private capital flows to this region have been drying up or have been coming on very expensive terms. We are seeing a drying up also of some official aid flows. So some of these countries have very limited fiscal space. Near a situation where the situation could become more challenging.

Now, on the flip side, the fact that we are seeing commodity prices coming down for many commodities will help some of them. The commodity importers in that group will hurt the ones who are commodity exporters. And there are a number of countries among the low-income group that are commodity exporters, so that is adding some additional pressure on them.

Mr. De Haro: I am going to make an exception and just one last question. I am going to go with the gentleman in the white shirt there. He has been waiting patiently, too. And don’t get frustrated. There are going to be many opportunities for you to ask questions.

QUESTION: Thank you, Jose. AFP.

I had a quick question about Spain because that’s the only countries among advanced economies where you had an upward revision. It’s going to be way better than the eurozone and even better than other advanced economies. What are the underlying reasons for that? And you formally talked much about tourism but are there any other things that might be pointed out? Thank you.

Mr. Gourinchas: Yes, indeed. Spain is doing better than its peers. Petya, would you like to talk about it?

Ms. Koeva Brooks: Sure. Indeed. We are actually having an upgrade for Spain this year, which is a rare occurrence in the many, many downgrades that we have had for many other countries. This is partly because the Spanish economy just had such strong momentum in 2024, coming into 2025. And part of that was due to the very strong services exports as well as the very strong labor accumulation. Part of that related to immigration. But all of that being said, Spain is still being affected indirectly and directly by the tariffs and the uncertainty associated with that. It’s just that, as I said, that underlying [strength is kind of having a bigger impact in the near term. But then again, in 2026, we do project kind of a slowing of growth to about 1.8.

Mr. De Haro: OK. And on that point, I want to thank you, everyone, on behalf of Pierre‑Olivier, Petya, Deniz, the Research Department, the Communications Department. Some reminders. Next press briefing is going to happen in this same room, Global Financial Stability Report, please stay tuned. Tomorrow you have the Fiscal Monitor, and then later in the week, you have the Managing Director’s press briefing and also all the regional press briefings that we have been talking about. Thank you very much for your time. If you have questions, comments, send them my way to media@imf.org and hopefully you have a great week. I am sure it’s going to be busy.

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: Jose De Haro

Phone: +1 202 623-7100Email: MEDIA@IMF.org

https://www.imf.org/en/News/Articles/2025/04/22/tr-04222025-weo-press-briefing

MIL OSI

MIL OSI Russia News –

April 23, 2025

MIL-OSI Economics: France gives EUR 1.9 million to build capacity in developing economies, LDCs

Source: World Trade Organization

Through the agreement signed by France and the WTO in July 2024, France provides, over a period of three years, funding of EUR 6 million to the French-Irish Mission Programme, the WTO Chairs Programme and the Standards and Trade Development Facility. These programmes are aimed at helping government officials from developing economies and LDCs better implement global trade rules and standards and at helping academic institutions provide support for trade policy-making.

“Our support for technical assistance in the WTO is a concrete expression of our commitment to an inclusive multilateral system,” France’s WTO Ambassador Emmanuelle Ivanov-Durand said. “Technical assistance is an important part of the WTO – it increases the number of people who are able to participate in the multilateral trading system and ultimately reap its benefits. France is proud to support the French-Irish Mission Programme, the WTO Chairs Programme and the Standards and Trade Development Facility, especially in these difficult times when resources are increasingly difficult to mobilize and when the multilateral system is under strain.”

The French-Irish Mission Programme, sponsored by France and Ireland, will receive EUR 900,000 (CHF 870,000) to finance the placement of government officials at the permanent missions of developing economies, LDCs and observers in Geneva.

A total of EUR 550,000 (CHF 530,000) will support the WTO Chairs Programme aimed at helping academic institutions in developing and least developed members and observers build and sustain their expertise in international trade through projects focusing on research, curriculum development and outreach.

The Standards and Trade Development Facility will receive EUR 500,000 (CHF 480,000) to help developing economies and LDCs implement food safety, animal health and plant health standards required for international trade. It will also help to improve their sanitary and phytosanitary capacity in line with the most recent STDF Strategy covering the period 2025-2030.

Deputy Director-General Zhang said: “Given the pace of changes we are experiencing in trade, the value of technical assistance is more important than ever. With France’s targeted support, these programmes continue to make significant contributions to developing economies by providing hands-on experience at the WTO, facilitating practical projects and establishing sustainable systems to help government officials tackle complex new areas with the help of academia.”

France has contributed just over EUR 34 million (approximately CHF 33 million) to the various WTO trust funds over more than 20 years.

MIL OSI Economics –

April 23, 2025

MIL-OSI Economics: Call for applications launched for support to women exporters through WTO-ITC WEIDE Fund

Source: WTO

Headline: Call for applications launched for support to women exporters through WTO-ITC WEIDE Fund

A joint initiative of the World Trade Organization (WTO) and the International Trade Centre (ITC), the WEIDE Fund is supported by a USD 50 million commitment to empower women entrepreneurs and help them thrive in global markets through the use of digital tools and platforms.
WTO Director-General Dr Ngozi Okonjo-Iweala emphasized the importance of inclusive access to digital trade opportunities: “Digital trade is reshaping the global economy. Women — including those in developing countries — must be at the forefront. The WTO-ITC WEIDE Fund is about powering growth, innovation and job creation. It reflects the WTO’s broader commitment to sustainable and inclusive re-globalization, where no one is left behind.”
The WEIDE Fund offers two types of grants:
Discovery Grant (up to USD 5,000): For early-stage businesses exploring digital trade opportunities.
Booster Grant (up to USD 30,000): For businesses ready to scale up their digital presence and expand into global markets.
Beyond financial support, the WEIDE Fund provides technical assistance, mentorship and access to international business networks. The initiative aims to build the long-term competitiveness and resilience of women-led micro, small and medium-sized enterprises (MSMEs) involved in e-commerce, online services, or other forms of digital trade as well as those ready to engage in these activities.
ITC Executive Director Pamela Coke-Hamilton highlighted the importance of removing barriers for women in global trade: “ITC is committed to breaking barriers for women exporters and ensuring they have the resources needed to succeed in the digital economy. The WTO-ITC WEIDE Fund is an opportunity for women-led businesses to access not only funding but also the expertise and networks critical for long-term success.”
The WEIDE Fund announced on 7 March the selection of four pilot beneficiary countries: Dominican Republic, Jordan, Mongolia and Nigeria. Business support organizations in these countries were selected from a competitive call for proposals to implement programmes that can help women entrepreneurs expand their business through international trade and digitalization.
To be eligible for support, women-led businesses must be:
Registered and operational in the Dominican Republic, Jordan, Mongolia, or Nigeria
Export-ready and keen to engage in digital trade
Able to demonstrate potential for business growth and job creation
The application period runs from 22 April to 18 May 2025 for the Dominican Republic, Mongolia and Nigeria. Applications from Jordan will be accepted at a later stage.
In each country, the WEIDE Fund collaborates with the following business support organizations (BSOs) to strengthen outreach and local engagement:
ProDominicana
Jordan Enterprise Development Corporation (JEDCO)
Mongolian National Chamber of Commerce and Industry (MNCCI)
Nigerian Export Promotion Council (NEPC)
The WEIDE Fund has been made possible through the support of the United Arab Emirates and the FIFA World Cup Qatar 2022 Legacy Fund.
For more details on eligibility and how to apply, visit wto.org/weidefund or contact [email protected].

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MIL OSI Economics –

April 23, 2025

MIL-OSI Economics: World Economic Outlook Press Briefing

Source: International Monetary Fund