MIL-OSI: QCR Holdings, Inc. Announces Net Income of $29.0 Million for the Second Quarter of 2025

Source: GlobeNewswire (MIL-OSI)

Second Quarter 2025 Highlights

Net income of $29.0 million, or $1.71 per diluted share
Adjusted net income¹of $29.4 million, or $1.73 per diluted share
NIM TEY¹expanded four basis points to 3.46%
Adjusted ROAA¹of 1.29% annualized
Capital markets revenue growth of 51% on a linked-quarter basis
Nonperforming assets declined $5.5 million, or 11%
Tangible book value per share¹grew $1.64, or 13% annualized
TCE/TA ratio¹improved 22 basis points to 9.92%

MOLINE, Ill., July 23, 2025 (GLOBE NEWSWIRE) — QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $29.0 million and diluted earnings per share (“EPS”) of $1.71 for the second quarter of 2025, compared to net income of $25.8 million and diluted EPS of $1.52 for the first quarter of 2025.

Adjusted net income¹ and adjusted diluted EPS¹ for the second quarter of 2025 were $29.4 million and $1.73, respectively, for the first quarter of 2025 compared to $26.0 million and $1.53, respectively, for the first quarter of 2025 and $29.3 million, and $1.73 respectively for the second quarter of 2024.

	For the Quarter Ended
	June 30,		March 31,		June 30,
$ in millions (except per share data)	2025		2025		2024
Net Income	$	29.0	$	25.8	$	29.1
Diluted EPS	$	1.71	$	1.52	$	1.72
Adjusted Net Income¹	$	29.4	$	26.0	$	29.3
Adjusted Diluted EPS¹	$	1.73	$	1.53	$	1.73

“We delivered strong second quarter results highlighted by a significant increase in net interest income from the previous quarter, driven by both net interest margin expansion and strong loan growth, as well as improved capital markets revenue, and disciplined noninterest expense management,” said Todd Gipple, President and Chief Executive Officer. “These robust results led to continued capital accretion and a substantial increase in tangible book value per share¹.”

Significant Net Interest Income Growth as Margin Expansion Continues

Net interest income for the second quarter of 2025 totaled $62.1 million, an increase of $2.1 million, or 14% annualized, from the first quarter of 2025, driven by strong earning asset growth, expanded yield on loans and investments, and lower cost of funds. Net interest margin (“NIM”) was 2.97% and NIM on a tax-equivalent yield (“TEY”) basis¹ was 3.46% for the second quarter, as compared to 2.95% and 3.42% for the prior quarter, respectively.

“Our NIM TEY¹ increased four basis points from the first quarter of 2025, which was at the top of our guidance range,” said Nick Anderson, Chief Financial Officer. “Looking ahead, we anticipate continued margin expansion and are guiding to an increase in third quarter NIM TEY¹ in a range from static to an increase of four basis points, assuming no Federal Reserve rate cuts,” added Mr. Anderson.

Improving Noninterest Income Driven by Capital Markets Revenue

Noninterest income for the second quarter of 2025 was $22.1 million, up from $16.9 million in the first quarter of 2025. The Company generated $9.9 million of capital markets revenue in the second quarter of 2025 compared to $6.5 million in the prior quarter. Wealth management revenue totaled $4.6 million, representing a slight decline from the first quarter of 2025. However, it increased $332 thousand or 8% compared to the second quarter of 2024 and rose 23% year-to-date on an annualized basis compared to the same period in 2024.

“During the second quarter of 2025 we saw improved low-income housing tax credit (“LIHTC”) lending activity compared to the first quarter as clients adjusted to the current environment. This increased activity drove 51% growth in our capital markets revenue. The sustained, long-term demand for affordable housing continues to support our LIHTC lending and related capital markets revenue. Our pipeline continues to improve as clients adapt to the evolving market conditions,” said Mr. Gipple.

“Given the strengthened pipeline, we are reaffirming our guidance for Capital Markets revenue to be in a range of $50 to $60 million for the next four quarters. In addition, we are also providing guidance over a shorter horizon and expect capital markets revenue for the third quarter to be fully back to a more normalized level and in a range of $13 to $16 million for the quarter,” added Mr. Gipple.

Disciplined Noninterest Expense Management

Noninterest expense for the second quarter of 2025 totaled $49.6 million compared to $46.5 million for the first quarter of 2025 and $49.9 million for the second quarter of 2024. The $3.1 million linked-quarter increase was primarily due to higher capital markets revenue and strong loan growth resulting in an improved return on average assets which drove higher variable compensation. Professional and data processing expenses also increased and were related to the Company’s digital transformation.

“While expenses increased compared to the first quarter, we held noninterest expense under the low end of our guidance range of $50 to $53 million, highlighting our expense flexibility,” said Mr. Anderson. “Noninterest expense remains well managed, down 9% year to date on an annualized basis compared to the same period in 2024. The Company’s efficiency ratio¹ was 58.9% in the second quarter. For the third quarter of 2025, we expect noninterest expense to be in the range of $52 to $55, million which includes certain costs associated with our digital transformation and assumes both capital markets revenue and loan growth are within our guidance range,” added Mr. Anderson.

Strong Loan Growth

In the second quarter of 2025, the Company’s total loans and leases held for investment grew by $102.6 million, to $6.9 billion. “Loan growth was 8% annualized when adding back the impact from the planned runoff of m2 Equipment Finance loans and leases. Second quarter loan growth was driven by both our LIHTC and traditional lending businesses. Our pipeline is strong, and we anticipate loan demand to increase as clients continue to adapt to current market conditions,” stated Mr. Gipple. “We continue to be optimistic about solid loan growth for the remainder of the year and are guiding to gross loan growth in a range of 8% to 10% in the second half of the year,” added Mr. Gipple.

Maintaining Core Deposit Strength

Following the robust deposit growth of $276.2 million, or 16% annualized, in the first quarter of 2025, the majority of those balances were retained throughout the second quarter. Total deposits declined slightly by $19.0 million, or 1% annualized from the first quarter, while average deposit balances increased $72.0 million. Year-to-date, core deposits have increased by $311 million, or 9% annualized.

Asset Quality Remains Excellent

The nonperforming assets (“NPAs”) to total assets ratio was 0.46% as of June 30, 2025, down seven basis points from the prior quarter. NPAs totaled $42.7 million at the end of the second quarter of 2025, a $5.5 million, or 11% decrease from the prior quarter.

Total criticized loans increased by $9.3 million on a linked-quarter basis. The ratio of criticized loans to total loans and leases as of June 30, 2025, increased to 2.16% as compared to 2.06% as of March 31, 2025. Despite the 10 basis point increase, the criticized loan ratio remains well below the Company’s long-term historical average.

The Company recorded a total provision for credit losses of $4.0 million during the quarter, which was down slightly from $4.2 million in the prior quarter. Net charge-offs were $6.3 million during the second quarter of 2025, an increase of $2.1 million from the prior quarter primarily due to the charge-off of loans that had previously been fully reserved. The allowance for credit losses to total loans held for investment was 1.28% for the second quarter.

Strong Tangible Book Value and Regulatory Capital Growth

The Company’s tangible book value per share¹ increased by $1.64, or 13% annualized, during the second quarter of 2025 due to the combination of strong earnings and a modest dividend.

As of June 30, 2025, the Company’s tangible common equity to tangible assets ratio (“TCE”)¹ increased 22 basis points to 9.92%. The improvement in TCE¹ was driven by strong earnings during the quarter. The total risk-based capital ratio increased to 14.26% and the common equity tier 1 ratio increased to 10.43% due to solid earnings growth during the quarter. By comparison, these ratios were 9.70%, 14.18%, and 10.27%, respectively, as of March 31, 2025. The Company remains focused on growing its regulatory capital.

Conference Call Details
The Company will host an earnings call/webcast tomorrow, July 24, 2025, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through July 31, 2025. The replay access information is 877-344-7529 (international 412-317-0088); access code 8414968. A webcast of the teleconference can be accessed on the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

About Us
QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, and Guaranty Bank, based in Springfield, Missouri, was acquired by the Company in 2018. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. The Company has 36 locations in Iowa, Missouri, and Illinois. As of June 30, 2025, the Company had $9.2 billion in assets, $6.9 billion in loans and $7.3 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

Endnotes

¹Adjusted non-GAAP measurements of financial performance exclude non-core and/or nonrecurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these adjusted measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.

Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “bode”, “predict,” “suggest,” “project”, “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, but are not limited to: (i) the strength of the local, state, national and international economies and financial markets, including effects of inflationary pressures, the threat or implementation of tariffs, trade wars and changes to immigration policy; (ii) changes in, and the interpretation and prioritization of, local, state and federal laws, regulations and governmental policies (including those concerning the Company’s general business); (iii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or threats thereof (including the Russian invasion of Ukraine and ongoing conflicts in the Middle East), or other adverse events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iv) new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB, the Securities and Exchange Commission (the “SEC”) or the PCAOB; (v) the imposition of tariffs or other governmental policies impacting the value of products produced by the Company’s commercial borrowers; (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions, fintech companies, and digital asset service providers and the inability to attract new customers; (vii) rapid technological changes implemented by us and our third-party vendors, including the development and implementation of tools incorporating artificial intelligence; (viii) unexpected results of acquisitions, including failure to realize the anticipated benefits of the acquisitions and the possibility that transaction and integration costs may be greater than anticipated; (ix) the loss of key executives and employees, talent shortages and employee turnover; (x) changes in consumer spending; (xi) unexpected outcomes and costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company; (xii) the economic impact on the Company and its customers of climate change, natural disasters and exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates; (xiv) credit risk and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio and large loans to certain borrowers (including CRE loans); (xv) the overall health of the local and national real estate market; (xvi) the ability to maintain an adequate level of allowance for credit losses on loans; (xvii) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and who may withdraw deposits to diversify their exposure; (xviii) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (xix) the level of non-performing assets on our balance sheet; (xx) interruptions involving our information technology and communications systems or third-party servicers; (xxi) the occurrence of fraudulent activity, breaches or failures of our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxii) changes in the interest rates and repayment rates of the Company’s assets; (xxiii) the effectiveness of the Company’s risk management framework, and (xxiv) the ability of the Company to manage the risks associated with the foregoing. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the SEC.

Contact:
Nick W. Anderson
Chief Financial Officer
(309) 743-7707
nanderson@qcrh.com

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

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

		(dollars in thousands)

	CONDENSED BALANCE SHEET

	Cash and due from banks	$	104,769		$	98,994		$	91,732		$	103,840		$	92,173
	Federal funds sold and interest-bearing deposits		145,704			225,716			170,592			159,159			102,262
	Securities, net of allowance for credit losses		1,263,452			1,220,717			1,200,435			1,146,046			1,033,199
	Loans receivable held for sale (1)		1,162			2,025			2,143			167,047			246,124
	Loans/leases receivable held for investment		6,923,762			6,821,142			6,782,261			6,661,755			6,608,262
	Allowance for credit losses		(88,732	)		(90,354	)		(89,841	)		(86,321	)		(87,706	)
	Intangibles		9,738			10,400			11,061			11,751			12,441
	Goodwill		138,595			138,595			138,595			138,596			139,027
	Derivatives		184,982			180,997			186,781			261,913			194,354
	Other assets		558,899			544,547			532,271			524,779			531,855
	Total assets	$	9,242,331		$	9,152,779		$	9,026,030		$	9,088,565		$	8,871,991

	Total deposits	$	7,318,353		$	7,337,390		$	7,061,187		$	6,984,633		$	6,764,667
	Total borrowings		509,359			429,921			569,532			660,344			768,671
	Derivatives		209,505			206,925			214,823			285,769			221,798
	Other liabilities		154,560			155,796			183,101			181,199			180,536
	Total stockholders’ equity		1,050,554			1,022,747			997,387			976,620			936,319
	Total liabilities and stockholders’ equity	$	9,242,331		$	9,152,779		$	9,026,030		$	9,088,565		$	8,871,991

	ANALYSIS OF LOAN PORTFOLIO
	Loan/lease mix: (2)
	Commercial and industrial – revolving	$	380,029		$	388,479		$	387,991		$	387,409		$	362,115
	Commercial and industrial – other		1,180,859			1,231,198			1,295,961			1,321,053			1,370,561
	Commercial and industrial – other – LIHTC		194,830			212,921			218,971			89,028			92,637
	Total commercial and industrial		1,755,718			1,832,598			1,902,923			1,797,490			1,825,313
	Commercial real estate, owner occupied		593,675			599,488			605,993			622,072			633,596
	Commercial real estate, non-owner occupied		1,036,049			1,040,281			1,077,852			1,103,694			1,082,457
	Construction and land development		454,022			403,001			395,557			342,335			331,454
	Construction and land development – LIHTC		1,075,000			1,016,207			917,986			913,841			750,894
	Multi-family		301,432			289,782			303,662			324,090			329,239
	Multi-family – LIHTC		950,331			888,517			828,448			973,682			1,148,244
	Direct financing leases		12,880			14,773			17,076			19,241			25,808
	1-4 family real estate		592,253			592,127			588,179			587,512			583,542
	Consumer		153,564			146,393			146,728			144,845			143,839
	Total loans/leases	$	6,924,924		$	6,823,167		$	6,784,404		$	6,828,802		$	6,854,386
	Less allowance for credit losses		88,732			90,354			89,841			86,321			87,706
	Net loans/leases	$	6,836,192		$	6,732,813		$	6,694,563		$	6,742,481		$	6,766,680


	ANALYSIS OF SECURITIES PORTFOLIO
	Securities mix:
	U.S. government sponsored agency securities	$	14,267		$	17,487		$	20,591		$	18,621		$	20,101
	Municipal securities		1,033,642			1,003,985			971,567			965,810			885,046
	Residential mortgage-backed and related securities		58,864			43,194			50,042			53,488			54,708
	Asset backed securities		6,684			7,764			9,224			10,455			12,721
	Other securities		67,358			66,105			65,745			39,190			38,464
	Trading securities (3)		82,900			82,445			83,529			58,685			22,362
	Total securities	$	1,263,715		$	1,220,980		$	1,200,698		$	1,146,249		$	1,033,402
	Less allowance for credit losses		263			263			263			203			203
	Net securities	$	1,263,452		$	1,220,717		$	1,200,435		$	1,146,046		$	1,033,199

	ANALYSIS OF DEPOSITS
	Deposit mix:
	Noninterest-bearing demand deposits	$	952,032		$	963,851		$	921,160		$	969,348		$	956,445
	Interest-bearing demand deposits		5,087,783			5,119,601			4,828,216			4,715,087			4,644,918
	Time deposits		974,341			951,606			953,496			942,847			859,593
	Brokered deposits		304,197			302,332			358,315			357,351			303,711
	Total deposits	$	7,318,353		$	7,337,390		$	7,061,187		$	6,984,633		$	6,764,667

	ANALYSIS OF BORROWINGS
	Borrowings mix:
	Term FHLB advances	$	145,383		$	145,383		$	145,383		$	145,383		$	135,000
	Overnight FHLB advances		80,000			–			140,000			230,000			350,000
	Other short-term borrowings		1,350			2,050			1,800			2,750			1,600
	Subordinated notes		233,701			233,595			233,489			233,383			233,276
	Junior subordinated debentures		48,925			48,893			48,860			48,828			48,795
	Total borrowings	$	509,359		$	429,921		$	569,532		$	660,344		$	768,671

(1)	Loans with a fair value of $0 million, $0 million, $0 million, $165.9 million and $243.2 million have been identified for securitization and are included in LHFS at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.
(2)	Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were $2.3 billion at June 30, 2025.
(3)	Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company.

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

	For the Quarter Ended
	June 30,		March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024		2024

	(dollars in thousands, except per share data)

INCOME STATEMENT
Interest income	$	120,247	$	116,673		$	121,642		$	125,420		$	119,746
Interest expense		58,165		56,687			60,438			65,698			63,583
Net interest income		62,082		59,986			61,204			59,722			56,163
Provision for credit losses		4,043		4,234			5,149			3,484			5,496
Net interest income after provision for credit losses	$	58,039	$	55,752		$	56,055		$	56,238		$	50,667


Trust fees (1)	$	3,395	$	3,686		$	3,456		$	3,270		$	3,103
Investment advisory and management fees (1)		1,254		1,254			1,320			1,229			1,214
Deposit service fees		2,187		2,183			2,228			2,294			1,986
Gains on sales of residential real estate loans, net		556		297			734			385			540
Gains on sales of government guaranteed portions of loans, net		40		61			49			–			12
Capital markets revenue		9,869		6,516			20,552			16,290			17,758
Earnings on bank-owned life insurance		998		524			797			814			2,964
Debit card fees		1,648		1,488			1,555			1,575			1,571
Correspondent banking fees		699		614			560			507			510
Loan related fee income		1,096		898			950			949			962
Fair value gain (loss) on derivatives and trading securities		230		(1,007	)		(1,781	)		(886	)		51
Other		143		378			205			730			218
Total noninterest income	$	22,115	$	16,892		$	30,625		$	27,157		$	30,889


Salaries and employee benefits	$	28,474	$	27,364		$	33,610		$	31,637		$	31,079
Occupancy and equipment expense		6,837		6,455			6,354			6,168			6,377
Professional and data processing fees		6,089		5,144			5,480			4,457			4,823
Restructuring expense		–		–			–			1,954			–
FDIC insurance, other insurance and regulatory fees		1,960		1,970			1,934			1,711			1,854
Loan/lease expense		407		381			513			587			151
Net cost of (income from) and gains/losses on operations of other real estate		50		(9	)		23			(42	)		28
Advertising and marketing		1,746		1,613			1,886			2,124			1,565
Communication and data connectivity		274		290			345			333			318
Supplies		252		207			252			278			259
Bank service charges		720		596			635			603			622
Correspondent banking expense		314		329			328			325			363
Intangibles amortization		661		661			691			690			690
Goodwill impairment		–		–			–			431			–
Payment card processing		547		594			516			785			706
Trust expense		413		357			381			395			379
Other		839		587			551			1,129			674
Total noninterest expense	$	49,583	$	46,539		$	53,499		$	53,565		$	49,888

Net income before income taxes	$	30,571	$	26,105		$	33,181		$	29,830		$	31,668
Federal and state income tax expense		1,552		308			2,956			2,045			2,554
Net income	$	29,019	$	25,797		$	30,225		$	27,785		$	29,114

Basic EPS	$	1.71	$	1.53		$	1.80		$	1.65		$	1.73
Diluted EPS	$	1.71	$	1.52		$	1.77		$	1.64		$	1.72


Weighted average common shares outstanding		16,928,542		16,900,785			16,871,652			16,846,200			16,814,814
Weighted average common and common equivalent shares outstanding		17,006,282		17,013,992			17,024,481			16,982,400			16,921,854

(1) Trust fees and investment advisory and management fees when combined are referred to as wealth management revenue.

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

	For the Six Months Ended
	June 30,			June 30,
		2025			2024

	(dollars in thousands, except per share data)

INCOME STATEMENT
Interest income	$	236,920		$	234,795
Interest expense		114,852			123,933
Net interest income		122,068			110,862
Provision for credit losses		8,277			8,465
Net interest income after provision for credit losses	$	113,791		$	102,397


Trust fees	$	7,081		$	6,302
Investment advisory and management fees		2,508			2,315
Deposit service fees		4,370			4,008
Gains on sales of residential real estate loans, net		853			922
Gains on sales of government guaranteed portions of loans, net		101			36
Capital markets revenue		16,385			34,215
Earnings on bank-owned life insurance		1,522			3,832
Debit card fees		3,136			3,037
Correspondent banking fees		1,313			1,022
Loan related fee income		1,994			1,798
Fair value loss on derivatives and trading securities		(777	)		(112	)
Other		521			372
Total noninterest income	$	39,007		$	57,747


Salaries and employee benefits	$	55,838		$	62,939
Occupancy and equipment expense		13,292			12,891
Professional and data processing fees		11,233			9,436
FDIC insurance, other insurance and regulatory fees		3,930			3,799
Loan/lease expense		788			529
Net cost of (income from) and gains/losses on operations of other real estate		41			(2	)
Advertising and marketing		3,359			3,048
Communication and data connectivity		564			719
Supplies		459			534
Bank service charges		1,316			1,190
Correspondent banking expense		643			668
Intangibles amortization		1,322			1,380
Payment card processing		1,141			1,352
Trust expense		770			804
Other		1,426			1,291
Total noninterest expense	$	96,122		$	100,578

Net income before income taxes	$	56,676		$	59,566
Federal and state income tax expense		1,860			3,726
Net income	$	54,816		$	55,840

Basic EPS	$	3.24		$	3.32
Diluted EPS	$	3.22		$	3.30


Weighted average common shares outstanding		16,914,663			16,799,081
Weighted average common and common equivalent shares outstanding		17,010,136			16,916,264

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

			As of and for the Quarter Ended															For the Six Months Ended
			June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
				2025			2025			2024			2024			2024			2025			2024

			(dollars in thousands, except per share data)

		COMMON SHARE DATA
		Common shares outstanding		16,934,698			16,920,363			16,882,045			16,861,108			16,824,985
		Book value per common share (1)	$	62.04		$	60.44		$	59.08		$	57.92		$	55.65
		Tangible book value per common share (Non-GAAP) (2)	$	53.28		$	51.64		$	50.21		$	49.00		$	46.65
		Closing stock price	$	67.90		$	71.32		$	80.64		$	74.03		$	60.00
		Market capitalization	$	1,149,866		$	1,206,760		$	1,361,368		$	1,248,228		$	1,009,499
		Market price / book value		109.45	%		117.99	%		136.49	%		127.81	%		107.82	%
		Market price / tangible book value		127.45	%		138.11	%		160.59	%		151.07	%		128.62	%
		Earnings per common share (basic) LTM (3)	$	6.69		$	6.71		$	6.77		$	6.93		$	6.78
		Price earnings ratio LTM (3)	10.15 x			10.63 x			11.91 x			10.68 x			8.85 x
		TCE / TA (Non-GAAP) (4)		9.92	%		9.70	%		9.55	%		9.24	%		9.00	%


		CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
		Beginning balance	$	1,022,747		$	997,387		$	976,620		$	936,319		$	907,342
		Net income		29,019			25,797			30,225			27,785			29,114
		Other comprehensive income (loss), net of tax		(1,671	)		404			(9,628	)		12,057			(368	)
		Common stock cash dividends declared		(1,016	)		(1,015	)		(1,013	)		(1,012	)		(1,008	)
		Other (5)		1,475			174			1,183			1,471			1,239
		Ending balance	$	1,050,554		$	1,022,747		$	997,387		$	976,620		$	936,319


		REGULATORY CAPITAL RATIOS (6):
		Total risk-based capital ratio		14.26	%		14.18	%		14.10	%		13.87	%		14.21	%
		Tier 1 risk-based capital ratio		10.96	%		10.81	%		10.57	%		10.33	%		10.49	%
		Tier 1 leverage capital ratio		11.22	%		11.06	%		10.73	%		10.50	%		10.40	%
		Common equity tier 1 ratio		10.43	%		10.27	%		10.03	%		9.79	%		9.92	%


		KEY PERFORMANCE RATIOS AND OTHER METRICS
		Return on average assets (annualized)		1.27	%		1.14	%		1.34	%		1.24	%		1.33	%		1.21	%		1.30	%
		Return on average total equity (annualized)		11.15	%		10.14	%		12.15	%		11.55	%		12.63	%		10.65	%		12.32	%
		Net interest margin		2.97	%		2.95	%		2.95	%		2.90	%		2.82	%		2.95	%		2.82	%
		Net interest margin (TEY) (Non-GAAP)(7)		3.46	%		3.42	%		3.43	%		3.37	%		3.27	%		3.45	%		3.26	%
		Efficiency ratio (Non-GAAP) (8)		58.89	%		60.54	%		58.26	%		61.65	%		57.31	%		59.68	%		59.65	%
		Gross loans/leases held for investment / total assets		74.91	%		74.53	%		75.14	%		73.30	%		74.48	%		74.91	%		74.48	%
		Gross loans/leases held for investment / total deposits		94.61	%		92.96	%		96.05	%		95.38	%		97.69	%		94.61	%		97.69	%
		Effective tax rate		5.08	%		1.18	%		8.91	%		6.86	%		8.06	%		3.28	%		6.26	%
		Full-time equivalent employees (9)		1,001			972			980			976			988			1,001			988


		AVERAGE BALANCES
		Assets	$	9,155,473		$	9,015,439		$	9,050,280		$	8,968,653		$	8,776,002		$	9,085,843		$	8,663,429
		Loans/leases		6,881,731			6,790,312			6,839,153			6,840,527			6,779,075			6,836,274			6,688,844
		Deposits		7,218,540			7,146,286			7,109,567			6,858,196			6,687,188			7,182,612			6,641,324
		Total stockholders’ equity		1,041,428			1,017,487			995,012			962,302			921,986			1,029,524			912,679

(1	)	Includes accumulated other comprehensive income (loss).
(2	)	Includes accumulated other comprehensive income (loss) and excludes intangible assets. See GAAP to Non-GAAP reconciliations.
(3	)	LTM : Last twelve months.
(4	)	TCE / TCA : tangible common equity / total tangible assets. See GAAP to non-GAAP reconciliations.
(5	)	Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.
(6	)	(6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.
(7	)	TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.
(8	)	See GAAP to Non-GAAP reconciliations.
(9	)	The increase in full-time equivalent employees in the second quarter of 2025 includes 21 summer interns.

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

		ANALYSIS OF NET INTEREST INCOME AND MARGIN

			For the Quarter Ended
			June 30, 2025						March 31, 2025						June 30, 2024
			Average Balance		Interest Earned or Paid		Average Yield or Cost		Average Balance		Interest Earned or Paid		Average Yield or Cost		Average Balance		Interest Earned or Paid		Average Yield or Cost

			(dollars in thousands)

		Fed funds sold	$	14,285	$	159	4.40	%	$	9,009	$	99	4.40	%	$	13,065	$	183	5.54	%
		Interest-bearing deposits at financial institutions		151,898		1,634	4.31	%		166,897		1,804	4.38	%		80,998		1,139	5.66	%
		Investment securities – taxable		401,657		4,805	4.79	%		400,779		4,588	4.59	%		377,747		4,286	4.53	%
		Investment securities – nontaxable (1)		893,753		12,872	5.76	%		843,476		11,722	5.57	%		704,761		9,462	5.37	%
		Restricted investment securities		34,037		622	7.23	%		30,562		534	6.99	%		43,398		869	7.92	%
		Loans (1)		6,881,731		110,245	6.43	%		6,790,312		107,439	6.42	%		6,779,075		112,719	6.69	%
		Total earning assets (1)	$	8,377,361	$	130,337	6.24	%	$	8,241,035	$	126,186	6.20	%	$	7,999,044	$	128,658	6.46	%

		Interest-bearing deposits	$	5,080,367	$	38,604	3.05	%	$	5,005,853	$	37,698	3.05	%	$	4,649,625	$	40,924	3.54	%
		Time deposits		1,193,035		12,409	4.17	%		1,204,593		12,690	4.27	%		1,091,870		12,128	4.47	%
		Short-term borrowings		1,420		15	4.23	%		1,839		18	3.97	%		1,622		21	5.18	%
		Federal Home Loan Bank advances		250,603		2,853	4.50	%		177,883		1,996	4.49	%		464,231		6,238	5.32	%
		Subordinated debentures		233,631		3,599	6.16	%		233,525		3,601	6.17	%		233,207		3,582	6.14	%
		Junior subordinated debentures		48,904		685	5.54	%		48,871		684	5.60	%		48,774		688	5.58	%
		Total interest-bearing liabilities	$	6,807,960	$	58,165	3.42	%	$	6,672,564	$	56,687	3.44	%	$	6,489,329	$	63,581	3.93	%

		Net interest income (1)			$	72,172					$	69,499					$	65,077
		Net interest margin (2)					2.97	%					2.95	%					2.82	%
		Net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.46	%					3.42	%					3.27	%
		Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.45	%					3.41	%					3.26	%
		Cost of funds (4)					3.01	%					3.02	%					3.43	%


			For the Six Months Ended
			June 30, 2025						June 30, 2024
			Average Balance		Interest Earned or Paid		Average Yield or Cost		Average Balance		Interest Earned or Paid		Average Yield or Cost

			(dollars in thousands)

		Fed funds sold	$	11,662	$	258	4.40	%	$	16,510	$	452	5.41	%
		Interest-bearing deposits at financial institutions		159,356		3,438	4.35	%		86,277		2,339	5.45	%
		Investment securities – taxable		401,220		9,393	4.69	%		375,644		8,546	4.54	%
		Investment securities – nontaxable (1)		868,754		24,594	5.67	%		695,365		18,813	5.41	%
		Restricted investment securities		32,309		1,156	7.12	%		40,742		1,543	7.49	%
		Loans (1)		6,836,274		217,684	6.42	%		6,688,844		220,392	6.63	%
		Total earning assets (1)	$	8,309,575	$	256,523	6.22	%	$	7,903,382	$	252,085	6.41	%

		Interest-bearing deposits	$	5,041,914	$	76,302	3.05	%	$	4,589,479	$	80,027	3.51	%
		Time deposits		1,198,782		25,098	4.22	%		1,099,746		24,473	4.48	%
		Short-term borrowings		1,629		33	4.05	%		1,688		44	5.19	%
		Federal Home Loan Bank advances		214,444		4,849	4.50	%		409,725		10,977	5.30	%
		Subordinated debentures		233,579		7,201	6.17	%		233,154		7,062	6.06	%
		Junior subordinated debentures		48,888		1,369	5.57	%		48,758		1,381	5.60	%
		Total interest-bearing liabilities	$	6,739,236	$	114,852	3.43	%	$	6,382,550	$	123,964	3.90	%

		Net interest income (1)			$	141,671					$	128,121
		Net interest margin (2)					2.95	%					2.82	%
		Net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.45	%					3.26	%
		Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.44	%					3.24	%
		Cost of funds (4)					3.01	%					3.39	%


(1	)	Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
(2	)	See “Select Financial Data – Subsidiaries” for a breakdown of amortization/accretion included in net interest margin for each period presented.
(3	)	TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.
(4	)	Cost of funds includes the effect of noninterest-bearing deposits.

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

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

			(dollars in thousands, except per share data)

		ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES
		Beginning balance	$	90,354		$	89,841		$	86,321		$	87,706		$	84,470
		Change in ACL for transfer of loans to LHFS		–			–			93			(1,812	)		498
		Credit loss expense		4,667			4,743			6,832			3,828			4,343
		Loans/leases charged off		(6,490	)		(4,944	)		(4,787	)		(3,871	)		(1,751	)
		Recoveries on loans/leases previously charged off		201			714			1,382			470			146
		Ending balance	$	88,732		$	90,354		$	89,841		$	86,321		$	87,706


		NONPERFORMING ASSETS
		Nonaccrual loans/leases	$	42,482		$	47,259		$	40,080		$	33,480		$	33,546
		Accruing loans/leases past due 90 days or more		7			356			4,270			1,298			87
		Total nonperforming loans/leases		42,489			47,615			44,350			34,778			33,633
		Other real estate owned		62			402			661			369			369
		Other repossessed assets		113			122			543			542			512
		Total nonperforming assets	$	42,664		$	48,139		$	45,554		$	35,689		$	34,514


		ASSET QUALITY RATIOS
		Nonperforming assets / total assets		0.46	%		0.53	%		0.50	%		0.39	%		0.39	%
		ACL for loans and leases / total loans/leases held for investment		1.28	%		1.32	%		1.32	%		1.30	%		1.33	%
		ACL for loans and leases / nonperforming loans/leases		208.84	%		189.76	%		202.57	%		248.21	%		260.77	%
		Net charge-offs as a % of average loans/leases		0.09	%		0.06	%		0.05	%		0.05	%		0.02	%



		INTERNALLY ASSIGNED RISK RATING (1)
		Special mention	$	68,621		$	55,327		$	73,636		$	80,121		$	85,096
		Substandard (2)		81,040			85,033			84,930			70,022			80,345
		Doubtful (2)		–			–			–			–			–
		Total Criticized loans (3)	$	149,661		$	140,360		$	158,566		$	150,143		$	165,441

		Classified loans as a % of total loans/leases (2)		1.17	%		1.25	%		1.25	%		1.03	%		1.17	%
		Total Criticized loans as a % of total loans/leases (3)		2.16	%		2.06	%		2.34	%		2.20	%		2.41	%

(1	)	Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass for the government guaranteed portion.
(2	)	Classified loans are defined as loans with internally assigned risk ratings of 10 or 11, regardless of performance, and include loans identified as Substandard or Doubtful.
(3	)	Total Criticized loans are defined as loans with internally assigned risk ratings of 9, 10, or 11 , regardless of performance, and include loans identified as Special Mention, Substandard, or Doubtful.

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

			For the Quarter Ended									For the Year Ended
			June 30,			March 31,			June 30,			June 30,			June 30,
		SELECT FINANCIAL DATA – SUBSIDIARIES		2025			2025			2024			2025			2024
			(dollars in thousands)

		TOTAL ASSETS
		Quad City Bank and Trust (1)	$	2,662,450		$	2,777,634		$	2,559,049
		m2 Equipment Finance, LLC		242,722			276,096			359,012
		Cedar Rapids Bank and Trust		2,664,293			2,617,143			2,428,267
		Community State Bank		1,605,966			1,583,646			1,531,109
		Guaranty Bank		2,365,944			2,331,944			2,369,754

		TOTAL DEPOSITS
		Quad City Bank and Trust (1)	$	2,309,942		$	2,397,047		$	2,100,520
		Cedar Rapids Bank and Trust		1,884,370			1,883,952			1,721,564
		Community State Bank		1,272,296			1,238,307			1,188,551
		Guaranty Bank		1,866,749			1,840,774			1,791,448

		TOTAL LOANS & LEASES
		Quad City Bank and Trust (1)	$	2,032,168		$	2,041,181		$	2,107,605
		m2 Equipment Finance, LLC		250,019			284,983			363,897
		Cedar Rapids Bank and Trust		1,852,316			1,790,065			1,736,438
		Community State Bank		1,206,735			1,197,005			1,162,686
		Guaranty Bank		1,833,706			1,794,915			1,847,658

		TOTAL LOANS & LEASES / TOTAL DEPOSITS
		Quad City Bank and Trust (1)		88	%		85	%		100	%
		Cedar Rapids Bank and Trust		98	%		95	%		101	%
		Community State Bank		95	%		97	%		98	%
		Guaranty Bank		98	%		98	%		103	%


		TOTAL LOANS & LEASES / TOTAL ASSETS
		Quad City Bank and Trust (1)		76	%		73	%		82	%
		Cedar Rapids Bank and Trust		70	%		68	%		72	%
		Community State Bank		75	%		76	%		76	%
		Guaranty Bank		78	%		77	%		78	%

		ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT
		Quad City Bank and Trust (1)		1.32	%		1.44	%		1.43	%
		m2 Equipment Finance, LLC		4.26	%		4.37	%		3.86	%
		Cedar Rapids Bank and Trust		1.35	%		1.38	%		1.38	%
		Community State Bank		1.09	%		1.08	%		1.08	%
		Guaranty Bank		1.29	%		1.30	%		1.13	%

		RETURN ON AVERAGE ASSETS (ANNUALIZED)
		Quad City Bank and Trust (1)		1.24	%		1.31	%		0.88	%		1.28	%		0.84	%
		Cedar Rapids Bank and Trust		2.36	%		2.14	%		2.94	%		2.25	%		3.01	%
		Community State Bank		1.31	%		1.07	%		1.26	%		1.19	%		1.25	%
		Guaranty Bank		0.85	%		0.72	%		1.42	%		0.79	%		1.15	%

		NET INTEREST MARGIN PERCENTAGE (2)
		Quad City Bank and Trust (1)		3.45	%		3.45	%		3.39	%		3.45	%		3.35	%
		Cedar Rapids Bank and Trust		3.99	%		4.00	%		3.75	%		4.00	%		3.76	%
		Community State Bank		3.87	%		3.78	%		3.72	%		3.83	%		3.74	%
		Guaranty Bank (3)		3.11	%		3.05	%		2.99	%		3.08	%		2.99	%

		ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET
		INTEREST MARGIN, NET
		Community State Bank	$	(1	)	$	(1	)	$	(1	)	$	(2	)	$	(2	)
		Guaranty Bank		118			218			301			336			697
		QCR Holdings, Inc. (4)		(33	)		(33	)		(32	)		(66	)		(64	)

(1	)	Quad City Bank and Trust amounts include m2 Equipment Finance, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Equipment Finance, LLC is also presented separately for certain (applicable) measurements.
(2	)	Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
(3	)	Guaranty Bank’s net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 2.86% for the quarter ended June 30, 2025, 2.91% for the quarter ended March 31, 2025 and 2.86% for the quarter ended June 30, 2024.
(4	)	Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

			As of
			June 30,			March 31,			December 31,			September 30,			June 30,
		GAAP TO NON-GAAP RECONCILIATIONS		2025			2025			2024			2024			2024
			(dollars in thousands, except per share data)
		TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)

		Stockholders’ equity (GAAP)	$	1,050,554		$	1,022,747		$	997,387		$	976,620		$	936,319
		Less: Intangible assets		148,333			148,995			149,657			150,347			151,468
		Tangible common equity (non-GAAP)	$	902,221		$	873,752		$	847,730		$	826,273		$	784,851

		Total assets (GAAP)	$	9,242,331		$	9,152,779		$	9,026,030		$	9,088,565		$	8,871,991
		Less: Intangible assets		148,333			148,995			149,657			150,347			151,468
		Tangible assets (non-GAAP)	$	9,093,998		$	9,003,784		$	8,876,373		$	8,938,218		$	8,720,523

		Tangible common equity to tangible assets ratio (non-GAAP)		9.92	%		9.70	%		9.55	%		9.24	%		9.00	%



(1	)	This ratio is a non-GAAP financial measure. The Company’s management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to stockholders’ equity and total assets, which are the most directly comparable GAAP financial measures.

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

		GAAP TO NON-GAAP RECONCILIATIONS	For the Quarter Ended															For the Six Months Ended
			June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
		ADJUSTED NET INCOME (1)		2025			2025			2024			2024			2024			2025			2024
			(dollars in thousands, except per share data)

		Net income (GAAP)	$	29,019		$	25,797		$	30,225		$	27,785		$	29,114		$	54,816		$	55,840

		Less non-core items (post-tax) (2):
		Income:
		Fair value loss on derivatives, net		(397	)		(156	)		(2,594	)		(542	)		(145	)		(553	)		(288	)
		Total non-core income (non-GAAP)	$	(397	)	$	(156	)	$	(2,594	)	$	(542	)	$	(145	)	$	(553	)	$	(288	)

		Expense:
		Goodwill impairment		–			–			–			431			–			–			–
		Restructuring expense		–			–			–			1,544			–			–			–
		Total non-core expense (non-GAAP)	$	–		$	–		$	–		$	1,975		$	–		$	–		$	–


		Adjusted net income (non-GAAP) (1)	$	29,416		$	25,953		$	32,819		$	30,302		$	29,259		$	55,369		$	56,128

		ADJUSTED EARNINGS PER COMMON SHARE (1)

		Adjusted net income (non-GAAP) (from above)	$	29,416		$	25,953		$	32,819		$	30,302		$	29,259		$	55,369		$	56,128

		Weighted average common shares outstanding		16,928,542			16,900,785			16,871,652			16,846,200			16,814,814			16,914,663			16,799,081
		Weighted average common and common equivalent shares outstanding		17,006,282			17,013,992			17,024,481			16,982,400			16,921,854			17,010,136			16,916,264

		Adjusted earnings per common share (non-GAAP):
		Basic	$	1.74		$	1.54		$	1.95		$	1.80		$	1.74		$	3.27		$	3.34
		Diluted	$	1.73		$	1.53		$	1.93		$	1.78		$	1.73		$	3.26		$	3.32

		ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)

		Adjusted net income (non-GAAP) (from above)	$	29,416		$	25,953		$	32,819		$	30,302		$	29,259		$	55,369		$	56,128

		Average Assets	$	9,155,473		$	9,015,439		$	9,050,280		$	8,968,653		$	8,776,002		$	9,085,843		$	8,663,429

		Adjusted return on average assets (annualized) (non-GAAP)		1.29	%		1.15	%		1.45	%		1.35	%		1.33	%		1.22	%		1.30	%
		Adjusted return on average equity (annualized) (non-GAAP)		11.30	%		10.20	%		13.19	%		12.60	%		12.69	%		10.76	%		12.30	%

		NET INTEREST MARGIN (TEY) (3)

		Net interest income (GAAP)	$	62,082		$	59,986		$	61,204		$	59,722		$	56,163		$	122,068		$	110,862
		Plus: Tax equivalent adjustment (4)		10,090			9,513			9,698			9,544			8,914			19,603			17,259
		Net interest income – tax equivalent (non-GAAP)	$	72,172		$	69,499		$	70,902		$	69,266		$	65,077		$	141,671		$	128,121
		Less: Acquisition accounting net accretion		84			184			471			463			268			268			631
		Adjusted net interest income	$	72,088		$	69,315		$	70,431		$	68,803		$	64,809		$	141,403		$	127,490

		Average earning assets	$	8,377,361		$	8,241,035		$	8,241,190		$	8,183,196		$	7,999,044		$	8,309,575		$	7,903,382

		Net interest margin (GAAP)		2.97	%		2.95	%		2.95	%		2.90	%		2.82	%		2.97	%		2.82	%
		Net interest margin (TEY) (non-GAAP)		3.46	%		3.42	%		3.43	%		3.37	%		3.27	%		3.45	%		3.26	%
		Adjusted net interest margin (TEY) (non-GAAP)		3.45	%		3.41	%		3.40	%		3.34	%		3.26	%		3.44	%		3.24	%

		EFFICIENCY RATIO (5)

		Noninterest expense (GAAP)	$	49,583		$	46,539		$	53,499		$	53,565		$	49,888		$	96,122		$	100,578

		Net interest income (GAAP)	$	62,082		$	59,986		$	61,204		$	59,722		$	56,163		$	122,068		$	110,862
		Noninterest income (GAAP)		22,115			16,892			30,625			27,157			30,889			39,007			57,747
		Total income	$	84,197		$	76,878		$	91,829		$	86,879		$	87,052		$	161,075		$	168,609

		Efficiency ratio (noninterest expense/total income) (non-GAAP)		58.89	%		60.54	%		58.26	%		61.65	%		57.31	%		59.68	%		59.65	%
		Adjusted efficiency ratio (core noninterest expense/core total income) (non-GAAP)		58.54	%		60.38	%		56.25	%		58.45	%		57.19	%		59.42	%		59.52	%


(1	)	Adjusted net income, adjusted earnings per common share, adjusted return on average assets and average equity are non-GAAP financial measures. The Company’s management believes that these measurements are important to investors as they exclude non-core or non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. In compliance with applicable rules of the SEC, these non-GAAP measures are reconciled to net income, which is the most directly comparable GAAP financial measure.
(2	)	Non-core or non-recurring items (post-tax) are calculated using an estimated effective federal tax rate of 21% with the exception of goodwill impairment which is not deductible for tax.
(3	)	Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
(4	)	Net interest margin (TEY) is a non-GAAP financial measure. The Company’s management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure. In addition, the Company calculates net interest margin without the impact of acquisition accounting net accretion as this can fluctuate and it’s difficult to provide a more realistic run-rate for future periods.
(5	)	Efficiency ratio is a non-GAAP measure. The Company’s management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue. In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most directly comparable GAAP financial measures.

The MIL Network –

July 24, 2025

MIL-OSI: Horizon Bancorp, Inc. Reports Strong Second Quarter 2025 Results Led by Continued Net Interest Margin Expansion

Source: GlobeNewswire (MIL-OSI)

MICHIGAN CITY, Ind., July 23, 2025 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three months ended June 30, 2025.

“Horizon’s second quarter earnings reflect the strength of the organization’s exceptional core community banking franchise. Strong loan growth, stable and granular core funding, excellent credit quality and prudent management of expenses fueled the quarter’s positive results and expanded on management’s commitment to improve the financial performance of the Company. The quarter was highlighted by a seventh consecutive quarter of net interest margin expansion, low net charge offs of 2 bps annualized and enhanced momentum in key performance metrics of ROAA and ROATCE”, President and CEO, Thomas Prame stated. “We continue to show strength across our core community banking platform that is being driven by a disciplined approach to creating a more efficient balance sheet and effective deployment of capital. We are pleased with our results through the first six months of 2025, with reported earnings per share growing by 58% versus the comparable period a year ago, and look forward to continuing to create additional shareholder value throughout the remainder of the year.”

Net income for the three months ended June 30, 2025 was $20.6 million, or $0.47 per diluted share, compared to net income of $23.9 million, or $0.54, for the first quarter of 2025 and compared to net income of $14.1 million, or $0.32 per diluted share, for the second quarter of 2024. As previously disclosed, results in the first quarter of 2025 included the $7.0 million pre-tax gain on the sale of the Company’s mortgage warehouse business.

Net income for the six months ended June 30, 2025 was $44.6 million, or $1.01 per diluted share, compared to net income of $28.1 million, or $0.64, for the six months ended June 30, 2024.

Second Quarter 2025 Highlights

Net interest income of $55.4 million increased 5.9% compared with $52.3 million for the three months ended March 31, 2025, and 22.3% compared with $45.3 million in the year ago period. Net interest margin, on a fully taxable equivalent (“FTE”) basis¹, expanded for the seventh consecutive quarter, to 3.23%, compared with 3.04% for the three months ended March 31, 2025 and 2.64% for the three months ended June 30, 2024.

Total loans held for investment (“HFI”) increased 6.2% compared to the linked quarter annualized, with strong organic commercial loan growth of $117.2 million, or 14.8% annualized. This growth was partially funded by the continued strategic runoff of lower yielding indirect auto loans of approximately $34.1 million.

Funding continued to trend favorably, with non-time deposit balances remaining relatively flat for the fourth consecutive quarter and interest-bearing liability cost declining by another 2 bps during the quarter.

Credit quality remained strong, with annualized net charge offs of 0.02% of average loans during the second quarter. Non-performing assets remain well within expected ranges, decreasing 12.4% from the prior quarter.

Expenses continued to be well managed, up less than 1% from the first quarter of 2025. These results reflect management’s commitment to generate higher earnings while maintaining a more efficient expense base.

^{____________________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.


	Financial Highlights
	(Dollars in Thousands Except Share and Per Share Data and Ratios)
	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
Income statement:
Net interest income	$	55,354		$	52,267		$	53,127		$	46,910		$	45,279
Provision for credit loss expense		2,462			1,376			1,171			1,044			2,369
Non-interest income (loss)		10,920			16,499			(28,954	)		11,511			10,485
Non-interest expense		39,417			39,306			44,935			39,272			37,522
Income tax expense (benefit)		3,752			4,141			(11,051	)		(75	)		1,733
Net Income (Loss)	$	20,643		$	23,943		$	(10,882	)	$	18,180		$	14,140

Per share data:
Basic earnings (loss) per share	$	0.47		$	0.55		$	(0.25	)	$	0.42		$	0.32
Diluted earnings (loss) per share		0.47			0.54			(0.25	)		0.41			0.32
Cash dividends declared per common share		0.16			0.16			0.16			0.16			0.16
Book value per common share		18.06			17.72			17.46			17.27			16.62
Market value – high		15.88			17.76			18.76			16.57			12.74
Market value – low		12.92			15.00			14.57			11.89			11.29
Weighted average shares outstanding – Basic		43,794,490			43,777,109			43,721,211			43,712,059			43,712,059
Weighted average shares outstanding – Diluted		44,034,663			43,954,164			43,721,211			44,112,321			43,987,187
Common shares outstanding (end of period)		43,801,507			43,785,932			43,722,086			43,712,059			43,712,059

Key ratios:
Return on average assets		1.08	%		1.25	%	(0.56		)%		0.92	%		0.73	%
Return on average stockholders’ equity		13.24			12.44			(5.73	)		9.80			7.83
Total equity to total assets		10.34			10.18			9.79			9.52			9.18
Total loans to deposit ratio		87.52			85.21			87.75			83.92			85.70
Allowance for credit losses to HFI loans		1.09			1.07			1.07			1.10			1.08
Annualized net charge-offs of average total loans ⁽¹⁾		0.02			0.07			0.05			0.03			0.05
Efficiency ratio		59.48			57.16			185.89			67.22			67.29

Key metrics (Non-GAAP) ⁽²⁾
Net FTE interest margin		3.23	%		3.04	%		2.97	%		2.66	%		2.64	%
Return on average tangible common equity		13.24			15.79			(7.35	)		12.65			10.18
Tangible common equity to tangible assets		8.37			8.19			7.83			7.58			7.22
Tangible book value per common share	$	14.32		$	13.96		$	13.68		$	13.46		$	12.80


⁽¹⁾ Average total loans includes loans held for investment and held for sale.
⁽²⁾ Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.

Income Statement Highlights

Net Interest Income

Net interest income was $55.4 million in the second quarter of 2025, compared to $52.3 million in the first quarter of 2025, driven by the continued expansion of the Company’s net FTE interest margin¹, which increased to 3.23% for the second quarter of 2025, compared to 3.04% for the first quarter of 2025. Expansion was attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward deposit balances, in addition to continued disciplined pricing strategies on both sides of the balance sheet. The second quarter net FTE interest margin did benefit by approximately seven basis points related to interest recoveries on certain commercial and residential loans.

Provision for Credit Losses

During the second quarter of 2025, the Company recorded a provision for credit losses of $2.5 million. This compares to a provision for credit losses of $1.4 million during the first quarter of 2025, and $2.4 million during the second quarter of 2024. The increase in the provision for credit losses during the second quarter of 2025 when compared with the first quarter of 2025 was primarily attributable to net growth in commercial loans HFI and changes in economic factors, partially offset by the reduction of specific reserves and the reserves for unfunded commitments in the current quarter.

For the second quarter of 2025, the allowance for credit losses included net charge-offs of $0.3 million, or an annualized 0.02% of average loans outstanding, compared to net charge-offs of $0.9 million, or an annualized 0.07% of average loans outstanding for the first quarter of 2025, and net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding, in the second quarter of 2024.

The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.09% at June 30, 2025, compared to 1.07% at March 31, 2025 and 1.08% at June 30, 2024.

Non-Interest Income

For the Quarter Ended	June 30,		March 31,			December 31,			September 30,		June 30,
(Dollars in Thousands)	2025		2025			2024			2024		2024
Non-interest Income
Service charges on deposit accounts	$	3,208	$	3,208		$	3,276		$	3,320	$	3,130
Wire transfer fees		69		71			124			123		113
Interchange fees		3,403		3,241			3,353			3,511		3,826
Fiduciary activities		1,251		1,326			1,313			1,394		1,372
Loss on sale of investment securities		—		(407	)		(39,140	)		—		—
Gain on sale of mortgage loans		1,219		1,076			1,071			1,622		896
Mortgage servicing income net of impairment		375		385			376			412		450
Increase in cash value of bank owned life insurance		346		335			335			349		318
Other income		1,049		7,264			338			780		380
Total non-interest income (loss)	$	10,920	$	16,499		$	(28,954	)	$	11,511	$	10,485

Total non-interest income was $10.9 million in the second quarter of 2025, compared to non-interest income of $16.5 million in the first quarter of 2025. The decrease in non-interest income of $5.6 million is due to the sale of the Company’s mortgage warehouse business to an unrelated third party in the first quarter of 2025, resulting in a pre-tax gain of $7.0 million that did not recur in the current period. Interchange fees and gain on sale of mortgage loans benefited from normal seasonality, while other categories remained relatively unchanged when compared with the prior period.

^{____________________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Non-Interest Expense

For the Quarter Ended	June 30,		March 31,		December 31,		September 30,		June 30,
(Dollars in Thousands)	2025		2025		2024		2024		2024
Non-interest Expense
Salaries and employee benefits	$	22,731	$	22,414	$	25,564	$	21,829	$	20,583
Net occupancy expenses		3,127		3,702		3,431		3,207		3,192
Data processing		2,951		2,872		2,841		2,977		2,579
Professional fees		735		826		736		676		714
Outside services and consultants		3,278		3,265		4,470		3,677		3,058
Loan expense		1,231		689		1,285		1,034		1,038
FDIC insurance expense		1,216		1,288		1,193		1,204		1,315
Core deposit intangible amortization		816		816		843		844		844
Merger related expenses		—		305		—		—		—
Other losses		245		228		371		297		515
Other expense		3,087		2,901		4,201		3,527		3,684
Total non-interest expense	$	39,417	$	39,306	$	44,935	$	39,272	$	37,522

Total non-interest expense was $39.4 million in the second quarter of 2025, compared with $39.3 million in the first quarter of 2025. The increase in non-interest expense during the second quarter of 2025 when compared with the prior period was primarily driven by a $0.5 million increase in loan expense. The increase was partially offset by a $0.6 million decrease in net occupancy expenses. Additionally, the Company incurred $0.3 million of direct expenses related to the sale of the mortgage warehouse business in the prior period that did not recur in the current period.

Income Taxes

Horizon recorded a net tax expense of $3.8 million for the second quarter of 2025, representing an effective tax rate of 15.4%, which is consistent with the Company’s estimated annual effective tax rate.

Balance Sheet Highlights

Total assets increased by $23.4 million, or 0.3%, to $7.7 billion as of June 30, 2025, from $7.6 billion as of March 31, 2025. The increase in total assets is primarily due to increases in loans HFI and non-interest earning cash, partially offset by a decrease in interest earning cash and investment securities. Total investment securities decreased by $24.2 million, or 1.2%, to $2.1 billion as of June 30, 2025. Total loans were $5.0 billion at June 30, 2025, an increase of $75.5 million from March 31, 2025 balances, due to organic commercial loan growth net of continued runoff in the indirect consumer portfolio.

Total deposits decreased by $66.0 million, or 1.1%, to $5.7 billion as of June 30, 2025 when compared to balances as of March 31, 2025. The decrease was partially related to a decline in time deposits of $51.9 million, or 4.2% and, to a lesser extent, a modest decrease in savings and money market deposits of $7.0 million, or 0.4%. Non-interest bearing deposit balances remained relatively unchanged in the current period. Total borrowings increased by $68.1 million during the quarter, to $880.3 million as of June 30, 2025. Balances subject to repurchase agreements increased by $7.2 million, to $95.1 million.

Capital

The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters, and the Company’s preliminary estimate of its consolidated regulatory capital ratios for the quarter ended June 30, 2025:

For the Quarter Ended	June 30,			March 31,			December 31,			September 30,
	2025*			2025			2024			2024
Consolidated Capital Ratios
Total capital (to risk-weighted assets)		14.48	%		14.26	%		13.91	%		13.45	%
Tier 1 capital (to risk-weighted assets)		12.52			12.33			12.00			11.63
Common equity tier 1 capital (to risk-weighted assets)		11.52			11.32			11.00			10.68
Tier 1 capital (to average assets)		9.59			9.25			8.88			9.02
*Preliminary estimate – may be subject to change

As of June 30, 2025, the ratio of total stockholders’ equity to total assets is 10.34%. Book value per common share was $18.06, increasing $0.34 during the second quarter of 2025.

Tangible common equity³ totaled $627.1 million at June 30, 2025, and the ratio of tangible common equity to tangible assets¹ was 8.37% at June 30, 2025, up from 8.19% at March 31, 2025. Tangible book value, which excludes intangible assets from total equity, per common share¹ was $14.32, increasing $0.36 during the second quarter of 2025 behind the growth in retained earnings.

Credit Quality

As of June 30, 2025, total non-accrual loans decreased by $4.5 million, or 15.7%, from March 31, 2025, to 0.49% of total loans HFI. Total non-performing assets decreased $3.9 million, or 12.4%, to $27.5 million, compared to $31.4 million as of March 31, 2025. The ratio of non-performing assets to total assets decreased to 0.36% compared to 0.41% as of March 31, 2025.

As of June 30, 2025, net charge-offs decreased by $0.6 million to $0.3 million, compared to $0.9 million as of March 31, 2025 and remain just 0.02% annualized of average loans.

^{____________________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Earnings Conference Call

As previously announced, Horizon will host a conference call to review its second quarter financial results and operating performance.

Participants may access the live conference call on July 24, 2025 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp, Inc. Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

A telephone replay of the call will be available approximately one hour after the end of the conference through August 1, 2025. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 5878909.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.7 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Use of Non-GAAP Financial Measures

Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to one-time costs and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

Forward Looking Statements

This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: effects on Horizon’s business resulting from new U.S. domestic or foreign governmental trade measures, including but not limited to tariffs, import and export controls, foreign exchange intervention accomplished to offset the effects of trade policy or in response to currency volatility, and other restrictions on free trade; uncertain conditions within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.


	Condensed Consolidated Statements of Income
	(Dollars in Thousands Except Per Share Data, Unaudited)
	Three Months Ended
	June 30,		March 31,			December 31,			September 30,			June 30,
	2025		2025			2024			2024			2024
Interest Income
Loans receivable	$	78,618	$	74,457		$	76,747		$	75,488		$	71,880
Investment securities – taxable		5,941		6,039			6,814			8,133			7,986
Investment securities – tax-exempt		6,088		6,192			6,301			6,310			6,377
Other		830		2,487			3,488			957			738
Total interest income		91,477		89,175			93,350			90,888			86,981
Interest Expense
Deposits		26,053		25,601			27,818			30,787			28,447
Borrowed funds		8,171		9,188			10,656			11,131			11,213
Subordinated notes		829		829			829			830			829
Junior subordinated debentures issued to capital trusts		1,070		1,290			920			1,230			1,213
Total interest expense		36,123		36,908			40,223			43,978			41,702
Net Interest Income		55,354		52,267			53,127			46,910			45,279
Provision for credit loss expense		2,462		1,376			1,171			1,044			2,369
Net Interest Income after Provision for Credit Losses		52,892		50,891			51,956			45,866			42,910
Non-interest Income
Service charges on deposit accounts		3,208		3,208			3,276			3,320			3,130
Wire transfer fees		69		71			124			123			113
Interchange fees		3,403		3,241			3,353			3,511			3,826
Fiduciary activities		1,251		1,326			1,313			1,394			1,372
Gains (losses) on sale of investment securities		—		(407	)		(39,140	)		—			—
Gain on sale of mortgage loans		1,219		1,076			1,071			1,622			896
Mortgage servicing income net of impairment		375		385			376			412			450
Increase in cash value of bank owned life insurance		346		335			335			349			318
Other income		1,049		7,264			338			780			380
Total non-interest income (loss)		10,920		16,499			(28,954	)		11,511			10,485
Non-interest Expense
Salaries and employee benefits		22,731		22,414			25,564			21,829			20,583
Net occupancy expenses		3,127		3,702			3,431			3,207			3,192
Data processing		2,951		2,872			2,841			2,977			2,579
Professional fees		735		826			736			676			714
Outside services and consultants		3,278		3,265			4,470			3,677			3,058
Loan expense		1,231		689			1,285			1,034			1,038
FDIC insurance expense		1,216		1,288			1,193			1,204			1,315
Core deposit intangible amortization		816		816			843			844			844
Merger related expenses		—		305			—			—			—
Other losses		245		228			371			297			515
Other expense		3,087		2,901			4,201			3,527			3,684
Total non-interest expense		39,417		39,306			44,935			39,272			37,522
Income (Loss) Before Income Taxes		24,395		28,084			(21,933	)		18,105			15,873
Income tax expense (benefit)		3,752		4,141			(11,051	)		(75	)		1,733
Net Income (Loss)	$	20,643	$	23,943		$	(10,882	)	$	18,180		$	14,140
Basic Earnings (Loss) Per Share	$	0.47	$	0.55		$	(0.25	)	$	0.42		$	0.32
Diluted Earnings (Loss) Per Share		0.47		0.54			(0.25	)		0.41			0.32

	Condensed Consolidated Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended for the Period
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
Assets
Interest earning assets
Federal funds sold	$	2,024		$	—		$	—		$	113,912		$	34,453
Interest earning deposits		34,174			80,023			201,131			12,107			4,957
Interest earning time deposits		—			—			735			735			1,715
Federal Home Loan Bank stock		45,412			45,412			53,826			53,826			53,826
Investment securities, available for sale		231,999			231,431			233,677			541,170			527,054
Investment securities, held to maturity		1,819,087			1,843,851			1,867,690			1,888,379			1,904,281
Loans held for sale		2,994			3,253			67,597			2,069			2,440
Gross loans held for investment (HFI)		4,985,582			4,909,815			4,847,040			4,803,996			4,822,840
Total Interest earning assets		7,121,272			7,113,784			7,271,696			7,416,194			7,351,566
Non-interest earning assets
Allowance for credit losses		(54,399	)		(52,654	)		(51,980	)		(52,881	)		(52,215	)
Cash		101,719			89,643			92,300			108,815			106,691
Cash value of life insurance		37,755			37,409			37,450			37,115			36,773
Other assets		148,773			143,675			152,635			119,026			165,656
Goodwill		155,211			155,211			155,211			155,211			155,211
Other intangible assets		8,592			9,407			10,223			11,067			11,910
Premises and equipment, net		93,398			93,499			93,864			93,544			93,695
Interest receivable		39,730			38,663			39,747			39,366			43,240
Total non-interest earning assets		530,779			514,855			529,450			511,263			560,961
Total assets	$	7,652,051		$	7,628,639		$	7,801,146		$	7,927,457		$	7,912,526
Liabilities
Savings and money market deposits	$	3,385,413		$	3,393,371		$	3,446,681		$	3,420,827		$	3,364,726
Time deposits		1,193,180			1,245,088			1,089,153			1,220,653			1,178,389
Borrowings		880,336			812,218			1,142,340			1,142,744			1,229,165
Repurchase agreements		95,089			87,851			89,912			122,399			128,169
Subordinated notes		55,807			55,772			55,738			55,703			55,668
Junior subordinated debentures issued to capital trusts		57,583			57,531			57,477			57,423			57,369
Total interest earning liabilities		5,667,408			5,651,832			5,881,301			6,019,749			6,013,486
Non-interest bearing deposits		1,121,163			1,127,324			1,064,818			1,085,535			1,087,040
Interest payable		14,007			11,441			11,137			11,400			11,240
Other liabilities		58,621			61,981			80,308			55,951			74,096
Total liabilities		6,861,199			6,852,578			7,037,564			7,172,635			7,185,862
Stockholders’ Equity
Preferred stock		—			—			—			—			—
Common stock		—			—			—			—			—
Additional paid-in capital		360,758			360,522			363,761			358,453			357,673
Retained earnings		466,497			452,945			436,122			454,050			442,977
Accumulated other comprehensive (loss)		(36,403	)		(37,406	)		(36,301	)		(57,681	)		(73,985	)
Total stockholders’ equity		790,852			776,061			763,582			754,822			726,665
Total liabilities and stockholders’ equity	$	7,652,051		$	7,628,639		$	7,801,146		$	7,927,457		$	7,912,527

	Loans and Deposits
	(Dollars in Thousands, Unaudited)
	June 30,		March 31,		December 31,		September 30,		June 30,		% Change
	2025		2025		2024		2024		2024		Q2’25 vs Q1’25			Q2’25 vs Q2’24
Loans:
Commercial real estate	$	2,321,951	$	2,262,910	$	2,202,858	$	2,105,459	$	2,117,772		3	%		10	%
Commercial & Industrial		976,740		918,541		875,297		808,600		786,788		6	%		24	%
Total commercial		3,298,691		3,181,451		3,078,155		2,914,059		2,904,560		4	%		14	%
Residential Real estate		786,026		801,726		802,909		801,356		797,956		(2	)%		(1	)%
Mortgage warehouse		—		—		—		80,437		68,917		—	%		(100	)%
Consumer		900,865		926,638		965,976		1,008,144		1,051,407		(3	)%		(14	)%
Total loans held for investment		4,985,582		4,909,815		4,847,040		4,803,996		4,822,840		2	%		3	%
Loans held for sale		2,994		3,253		67,597		2,069		2,440		(8	)%		23	%
Total loans	$	4,988,576	$	4,913,068	$	4,914,637	$	4,806,065	$	4,825,280		2	%		3	%

Deposits:
Interest bearing deposits	$	1,713,058	$	1,713,991	$	1,767,983	$	1,688,998	$	1,653,508		—	%		4	%
Savings and money market deposits		1,672,355		1,679,380		1,678,697		1,731,830		1,711,218		—	%		(2	)%
Time deposits		1,193,180		1,245,088		1,089,153		1,220,653		1,178,389		(4	)%		1	%
Total Interest bearing deposits		4,578,593		4,638,459		4,535,833		4,641,481		4,543,115		(1	)%		1	%
Non-interest bearing deposits
Non-interest bearing deposits		1,121,164		1,127,324		1,064,819		1,085,534		1,087,040		(1	)%		3	%
Total deposits	$	5,699,757	$	5,765,784	$	5,600,652	$	5,727,015	$	5,630,155		(1	)%		1	%

	Average Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended
	June 30, 2025								March 31, 2025								June 30, 2024
	Average Balance			Interest⁽⁴⁾⁽⁶⁾		Average Rate⁽⁴⁾			Average Balance			Interest⁽⁴⁾⁽⁶⁾		Average Rate⁽⁴⁾			Average Balance			Interest⁽⁴⁾⁽⁶⁾		Average Rate⁽⁴⁾
Assets
Interest earning assets
Interest earning deposits (incl. Fed Funds Sold)	$	72,993		$	830		4.56	%	$	223,148		$	2,487		4.52	%	$	55,467		$	738		5.35	%
Federal Home Loan Bank stock		45,412			1,075		9.49	%		51,769			1,012		7.93	%		53,827			1,521		11.36	%
Investment securities – taxable (1)		959,238			4,867		2.03	%		974,109			5,027		2.09	%		1,309,305			6,465		1.99	%
Investment securities – non-taxable (1)		1,100,731			7,706		2.81	%		1,120,249			7,838		2.84	%		1,132,065			8,072		2.87	%
Total investment securities		2,059,969			12,573		2.45	%		2,094,358			12,865		2.49	%		2,441,370			14,537		2.39	%
Loans receivable (2) (3)		4,947,093			79,000		6.41	%		4,865,449			74,840		6.24	%		4,662,124			72,208		6.23	%
Total interest earning assets		7,125,467			93,478		5.26	%		7,234,724			91,204		5.11	%		7,212,788			89,004		4.96	%
Non-interest earning assets
Cash and due from banks		86,316								88,624								108,319
Allowance for credit losses		(52,560	)							(51,863	)							(50,334	)
Other assets		472,175								483,765								508,555
Total average assets	$	7,631,398							$	7,755,250							$	7,779,328

Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest bearing demand deposits	$	1,727,713		$	6,803		1.58	%	$	1,750,446		$	6,491		1.50	%	$	1,656,523		$	7,081		1.72	%
Saving and money market deposits		1,651,866			8,200		1.99	%		1,674,590			8,263		2.00	%		1,677,967			9,733		2.33	%
Time deposits		1,233,582			11,050		3.59	%		1,212,386			10,847		3.63	%		1,134,590			11,633		4.12	%
Total Deposits		4,613,161			26,053		2.27	%		4,637,422			25,601		2.24	%		4,469,080			28,447		2.56	%
Borrowings		847,862			7,777		3.68	%		971,496			8,772		3.66	%		1,184,172			10,278		3.49	%
Repurchase agreements		88,058			394		1.79	%		88,469			416		1.91	%		125,144			935		3.00	%
Subordinated notes		55,785			829		5.96	%		55,750			829		6.03	%		55,647			829		5.99	%
Junior subordinated debentures issued to capital trusts		57,550			1,070		7.46	%		57,497			1,290		9.10	%		57,335			1,213		8.51	%
Total interest bearing liabilities		5,662,416			36,123		2.56	%		5,810,634			36,908		2.58	%		5,891,378			41,702		2.85	%
Non-interest bearing liabilities
Demand deposits		1,114,982								1,085,826								1,080,676
Accrued interest payable and other liabilities		64,465								78,521								80,942
Stockholders’ equity		789,535								780,269								726,332
Total average liabilities and stockholders’ equity	$	7,631,398							$	7,755,250							$	7,779,328
Net FTE interest income (non-GAAP) (5)				$	57,355							$	54,296							$	47,302
Less FTE adjustments (4)					2,001								2,029								2,023
Net Interest Income				$	55,354							$	52,267							$	45,279
Net FTE interest margin (Non-GAAP) (4)(5)							3.23	%							3.04	%							2.64	%

⁽¹⁾ Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
⁽²⁾ Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
⁽³⁾ Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
⁽⁴⁾ Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.
⁽⁵⁾ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
⁽⁶⁾ Includes dividend income on Federal Home Loan Bank stock

	Credit Quality
	(Dollars in Thousands Except Ratios, Unaudited)
	Quarter Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			% Change
	2025			2025			2024			2024			2024			Q2’25 vs Q1’25			Q2’25 vs Q2’24
Non-accrual loans
Commercial	$	7,547		$	8,172		$	5,658		$	6,830		$	4,321			(8	)%		75	%
Residential Real estate		9,525			12,763			11,215			9,529			8,489			(25	)%		12	%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		7,222			7,875			8,919			7,208			5,453			(8	)%		32	%
Total non-accrual loans		24,294			28,810			25,792			23,567			18,263			(16	)%		33	%
90 days and greater delinquent – accruing interest		2,113			1,582			1,166			819			1,039			34	%		103	%
Total non-performing loans	$	26,407		$	30,392		$	26,958		$	24,386		$	19,302			(13	)%		37	%

Other real estate owned
Commercial	$	176		$	360		$	407		$	1,158		$	1,111			(51	)%		(84	)%
Residential Real estate		463			641			—			—			—			—	%		—	%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		480			34			17			36			57			1311	%		742	%
Total other real estate owned		1,119			1,035			424			1,194			1,168			8	%		(4	)%

Total non-performing assets	$	27,526		$	31,427		$	27,382		$	25,580		$	20,470			(12	)%		34	%

Loan data:
Accruing 30 to 89 days past due loans	$	31,401		$	19,034		$	23,075		$	18,087		$	19,785			65	%		59	%
Substandard loans		64,100			66,714			64,535			59,775			51,221			(4	)%		25	%
Net charge-offs (recoveries)
Commercial	$	84		$	(47	)	$	(32	)	$	(52	)	$	57			(279	)%		47	%
Residential Real estate		52			(47	)		(10	)		(9	)		(4	)		(211	)%		(1400	)%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		118			963			668			439			534			(88	)%		(78	)%
Total net charge-offs	$	254		$	869		$	626		$	378		$	587			(71	)%		(57	)%

Allowance for credit losses
Commercial	$	34,413		$	32,640		$	30,953		$	32,854		$	31,941			5	%		8	%
Residential Real estate		3,229			3,167			2,715			2,675			2,588			2	%		25	%
Mortgage warehouse		—			—			—			862			736			—	%		(100	)%
Consumer		16,757			16,847			18,312			16,490			16,950			(1	)%		(1	)%
Total allowance for credit losses	$	54,399		$	52,654		$	51,980		$	52,881		$	52,215			3	%		4	%

Credit quality ratios
Non-accrual loans to HFI loans		0.49	%		0.59	%		0.53	%		0.49	%		0.38	%
Non-performing assets to total assets		0.36	%		0.41	%		0.35	%		0.32	%		0.26	%
Annualized net charge-offs of average total loans		0.02	%		0.07	%		0.05	%		0.03	%		0.05	%
Allowance for credit losses to HFI loans		1.09	%		1.07	%		1.07	%		1.10	%		1.08	%

Non–GAAP Reconciliation of Net Fully-Taxable Equivalent (“FTE”) Interest Margin
(Dollars in Thousands, Unaudited)

		Three Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Interest income (GAAP)	(A)	$	91,477		$	89,175		$	93,350		$	90,888		$	86,981
Taxable-equivalent adjustment:
Investment securities – tax exempt (1)			1,619			1,646			1,675			1,677			1,695
Loan receivable (2)			382			383			395			340			328
Interest income (non-GAAP)	(B)		93,478			91,204			95,420			92,905			89,004
Interest expense (GAAP)	(C)		36,123			36,908			40,223			43,978			41,702
Net interest income (GAAP)	(D) =(A) – (C)	$	55,354		$	52,267		$	53,127		$	46,910		$	45,279
Net FTE interest income (non-GAAP)	(E) = (B) – (C)	$	57,355		$	54,296		$	55,197		$	48,927		$	47,302
Average interest earning assets	(F)		7,125,467			7,234,724			7,396,178			7,330,263			7,212,788
Net FTE interest margin (non-GAAP)	(G) = (E*) / (F)		3.23	%		3.04	%		2.97	%		2.66	%		2.64	%

⁽¹⁾ The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
⁽²⁾ The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
*Annualized

Non–GAAP Reconciliation of Return on Average Tangible Common Equity
(Dollars in Thousands, Unaudited)

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

Net income (loss) (GAAP)	(A)	$	20,643		$	23,941		$	(10,882	)	$	18,180		$	14,140

Average stockholders’ equity	(B)	$	789,535		$	780,269		$	755,340		$	738,372		$	726,332
Average intangible assets	(C)		164,320			165,138			165,973			166,819			167,659
Average tangible equity (Non-GAAP)	(D) = (B) – (C)	$	625,215		$	615,131		$	589,367		$	571,553		$	558,673
Return on average tangible common equity (“ROACE”) (non-GAAP)	(E) = (A*) / (D)		13.24	%		15.48	%	(7.35		)%		12.65	%		10.18	%
*Annualized

Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
(Dollars in Thousands, Unaudited)
		Three Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Total stockholders’ equity (GAAP)	(A)	$	790,852		$	776,061		$	763,582		$	754,822		$	726,665
Intangible assets (end of period)	(B)		163,802			164,618			165,434			166,278			167,121
Total tangible common equity (non-GAAP)	(C) = (A) – (B)	$	627,050		$	611,443		$	598,148		$	588,544		$	559,544

Total assets (GAAP)	(D)	$	7,652,051		$	7,628,636		$	7,801,146		$	7,927,457		$	7,912,527
Intangible assets (end of period)	(B)		163,802			164,618			165,434			166,278			167,121
Total tangible assets (non-GAAP)	(E) = (D) – (B)	$	7,488,249		$	7,464,018		$	7,635,712		$	7,761,179		$	7,745,406

Tangible common equity to tangible assets (Non-GAAP)	(G) = (C) / (E)		8.37	%		8.19	%		7.83	%		7.58	%		7.22	%

Non–GAAP Reconciliation of Tangible Book Value Per Share
(Dollars in Thousands, Unaudited)
		Three Months Ended
		June 30,		March 31,		December 31,		September 30,		June 30,
		2025		2025		2024		2024		2024
Total stockholders’ equity (GAAP)	(A)	$	790,852	$	776,061	$	763,582	$	754,822	$	726,665
Intangible assets (end of period)	(B)		163,802		164,618		165,434		166,278		167,121
Total tangible common equity (non-GAAP)	(C) = (A) – (B)	$	627,050	$	611,443	$	598,148	$	588,544	$	559,544
Common shares outstanding	(D)		43,801,507		43,786,000		43,722,086		43,712,059		43,712,059

Tangible book value per common share (non-GAAP)	(E) = (C) / (D)	$	14.32	$	13.96	$	13.68	$	13.46	$	12.80

Contact:	John R. Stewart, CFA
	EVP, Chief Financial Officer
Phone:	(219) 814–5833
Fax:	(219) 874–9280
Date:	July 23, 2025

The MIL Network –

July 24, 2025

MIL-OSI: Horizon Bancorp, Inc. Reports Strong Second Quarter 2025 Results Led by Continued Net Interest Margin Expansion

Source: GlobeNewswire (MIL-OSI)

MICHIGAN CITY, Ind., July 23, 2025 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three months ended June 30, 2025.

“Horizon’s second quarter earnings reflect the strength of the organization’s exceptional core community banking franchise. Strong loan growth, stable and granular core funding, excellent credit quality and prudent management of expenses fueled the quarter’s positive results and expanded on management’s commitment to improve the financial performance of the Company. The quarter was highlighted by a seventh consecutive quarter of net interest margin expansion, low net charge offs of 2 bps annualized and enhanced momentum in key performance metrics of ROAA and ROATCE”, President and CEO, Thomas Prame stated. “We continue to show strength across our core community banking platform that is being driven by a disciplined approach to creating a more efficient balance sheet and effective deployment of capital. We are pleased with our results through the first six months of 2025, with reported earnings per share growing by 58% versus the comparable period a year ago, and look forward to continuing to create additional shareholder value throughout the remainder of the year.”

Net income for the three months ended June 30, 2025 was $20.6 million, or $0.47 per diluted share, compared to net income of $23.9 million, or $0.54, for the first quarter of 2025 and compared to net income of $14.1 million, or $0.32 per diluted share, for the second quarter of 2024. As previously disclosed, results in the first quarter of 2025 included the $7.0 million pre-tax gain on the sale of the Company’s mortgage warehouse business.

Net income for the six months ended June 30, 2025 was $44.6 million, or $1.01 per diluted share, compared to net income of $28.1 million, or $0.64, for the six months ended June 30, 2024.

Second Quarter 2025 Highlights

Net interest income of $55.4 million increased 5.9% compared with $52.3 million for the three months ended March 31, 2025, and 22.3% compared with $45.3 million in the year ago period. Net interest margin, on a fully taxable equivalent (“FTE”) basis¹, expanded for the seventh consecutive quarter, to 3.23%, compared with 3.04% for the three months ended March 31, 2025 and 2.64% for the three months ended June 30, 2024.

Total loans held for investment (“HFI”) increased 6.2% compared to the linked quarter annualized, with strong organic commercial loan growth of $117.2 million, or 14.8% annualized. This growth was partially funded by the continued strategic runoff of lower yielding indirect auto loans of approximately $34.1 million.

Funding continued to trend favorably, with non-time deposit balances remaining relatively flat for the fourth consecutive quarter and interest-bearing liability cost declining by another 2 bps during the quarter.

Credit quality remained strong, with annualized net charge offs of 0.02% of average loans during the second quarter. Non-performing assets remain well within expected ranges, decreasing 12.4% from the prior quarter.

Expenses continued to be well managed, up less than 1% from the first quarter of 2025. These results reflect management’s commitment to generate higher earnings while maintaining a more efficient expense base.

^{____________________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.


	Financial Highlights
	(Dollars in Thousands Except Share and Per Share Data and Ratios)
	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
Income statement:
Net interest income	$	55,354		$	52,267		$	53,127		$	46,910		$	45,279
Provision for credit loss expense		2,462			1,376			1,171			1,044			2,369
Non-interest income (loss)		10,920			16,499			(28,954	)		11,511			10,485
Non-interest expense		39,417			39,306			44,935			39,272			37,522
Income tax expense (benefit)		3,752			4,141			(11,051	)		(75	)		1,733
Net Income (Loss)	$	20,643		$	23,943		$	(10,882	)	$	18,180		$	14,140

Per share data:
Basic earnings (loss) per share	$	0.47		$	0.55		$	(0.25	)	$	0.42		$	0.32
Diluted earnings (loss) per share		0.47			0.54			(0.25	)		0.41			0.32
Cash dividends declared per common share		0.16			0.16			0.16			0.16			0.16
Book value per common share		18.06			17.72			17.46			17.27			16.62
Market value – high		15.88			17.76			18.76			16.57			12.74
Market value – low		12.92			15.00			14.57			11.89			11.29
Weighted average shares outstanding – Basic		43,794,490			43,777,109			43,721,211			43,712,059			43,712,059
Weighted average shares outstanding – Diluted		44,034,663			43,954,164			43,721,211			44,112,321			43,987,187
Common shares outstanding (end of period)		43,801,507			43,785,932			43,722,086			43,712,059			43,712,059

Key ratios:
Return on average assets		1.08	%		1.25	%	(0.56		)%		0.92	%		0.73	%
Return on average stockholders’ equity		13.24			12.44			(5.73	)		9.80			7.83
Total equity to total assets		10.34			10.18			9.79			9.52			9.18
Total loans to deposit ratio		87.52			85.21			87.75			83.92			85.70
Allowance for credit losses to HFI loans		1.09			1.07			1.07			1.10			1.08
Annualized net charge-offs of average total loans ⁽¹⁾		0.02			0.07			0.05			0.03			0.05
Efficiency ratio		59.48			57.16			185.89			67.22			67.29

Key metrics (Non-GAAP) ⁽²⁾
Net FTE interest margin		3.23	%		3.04	%		2.97	%		2.66	%		2.64	%
Return on average tangible common equity		13.24			15.79			(7.35	)		12.65			10.18
Tangible common equity to tangible assets		8.37			8.19			7.83			7.58			7.22
Tangible book value per common share	$	14.32		$	13.96		$	13.68		$	13.46		$	12.80


⁽¹⁾ Average total loans includes loans held for investment and held for sale.
⁽²⁾ Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.

Income Statement Highlights

Net Interest Income

Net interest income was $55.4 million in the second quarter of 2025, compared to $52.3 million in the first quarter of 2025, driven by the continued expansion of the Company’s net FTE interest margin¹, which increased to 3.23% for the second quarter of 2025, compared to 3.04% for the first quarter of 2025. Expansion was attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward deposit balances, in addition to continued disciplined pricing strategies on both sides of the balance sheet. The second quarter net FTE interest margin did benefit by approximately seven basis points related to interest recoveries on certain commercial and residential loans.

Provision for Credit Losses

During the second quarter of 2025, the Company recorded a provision for credit losses of $2.5 million. This compares to a provision for credit losses of $1.4 million during the first quarter of 2025, and $2.4 million during the second quarter of 2024. The increase in the provision for credit losses during the second quarter of 2025 when compared with the first quarter of 2025 was primarily attributable to net growth in commercial loans HFI and changes in economic factors, partially offset by the reduction of specific reserves and the reserves for unfunded commitments in the current quarter.

For the second quarter of 2025, the allowance for credit losses included net charge-offs of $0.3 million, or an annualized 0.02% of average loans outstanding, compared to net charge-offs of $0.9 million, or an annualized 0.07% of average loans outstanding for the first quarter of 2025, and net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding, in the second quarter of 2024.

The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.09% at June 30, 2025, compared to 1.07% at March 31, 2025 and 1.08% at June 30, 2024.

Non-Interest Income

For the Quarter Ended	June 30,		March 31,			December 31,			September 30,		June 30,
(Dollars in Thousands)	2025		2025			2024			2024		2024
Non-interest Income
Service charges on deposit accounts	$	3,208	$	3,208		$	3,276		$	3,320	$	3,130
Wire transfer fees		69		71			124			123		113
Interchange fees		3,403		3,241			3,353			3,511		3,826
Fiduciary activities		1,251		1,326			1,313			1,394		1,372
Loss on sale of investment securities		—		(407	)		(39,140	)		—		—
Gain on sale of mortgage loans		1,219		1,076			1,071			1,622		896
Mortgage servicing income net of impairment		375		385			376			412		450
Increase in cash value of bank owned life insurance		346		335			335			349		318
Other income		1,049		7,264			338			780		380
Total non-interest income (loss)	$	10,920	$	16,499		$	(28,954	)	$	11,511	$	10,485

Total non-interest income was $10.9 million in the second quarter of 2025, compared to non-interest income of $16.5 million in the first quarter of 2025. The decrease in non-interest income of $5.6 million is due to the sale of the Company’s mortgage warehouse business to an unrelated third party in the first quarter of 2025, resulting in a pre-tax gain of $7.0 million that did not recur in the current period. Interchange fees and gain on sale of mortgage loans benefited from normal seasonality, while other categories remained relatively unchanged when compared with the prior period.

^{____________________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Non-Interest Expense

For the Quarter Ended	June 30,		March 31,		December 31,		September 30,		June 30,
(Dollars in Thousands)	2025		2025		2024		2024		2024
Non-interest Expense
Salaries and employee benefits	$	22,731	$	22,414	$	25,564	$	21,829	$	20,583
Net occupancy expenses		3,127		3,702		3,431		3,207		3,192
Data processing		2,951		2,872		2,841		2,977		2,579
Professional fees		735		826		736		676		714
Outside services and consultants		3,278		3,265		4,470		3,677		3,058
Loan expense		1,231		689		1,285		1,034		1,038
FDIC insurance expense		1,216		1,288		1,193		1,204		1,315
Core deposit intangible amortization		816		816		843		844		844
Merger related expenses		—		305		—		—		—
Other losses		245		228		371		297		515
Other expense		3,087		2,901		4,201		3,527		3,684
Total non-interest expense	$	39,417	$	39,306	$	44,935	$	39,272	$	37,522

Total non-interest expense was $39.4 million in the second quarter of 2025, compared with $39.3 million in the first quarter of 2025. The increase in non-interest expense during the second quarter of 2025 when compared with the prior period was primarily driven by a $0.5 million increase in loan expense. The increase was partially offset by a $0.6 million decrease in net occupancy expenses. Additionally, the Company incurred $0.3 million of direct expenses related to the sale of the mortgage warehouse business in the prior period that did not recur in the current period.

Income Taxes

Horizon recorded a net tax expense of $3.8 million for the second quarter of 2025, representing an effective tax rate of 15.4%, which is consistent with the Company’s estimated annual effective tax rate.

Balance Sheet Highlights

Total assets increased by $23.4 million, or 0.3%, to $7.7 billion as of June 30, 2025, from $7.6 billion as of March 31, 2025. The increase in total assets is primarily due to increases in loans HFI and non-interest earning cash, partially offset by a decrease in interest earning cash and investment securities. Total investment securities decreased by $24.2 million, or 1.2%, to $2.1 billion as of June 30, 2025. Total loans were $5.0 billion at June 30, 2025, an increase of $75.5 million from March 31, 2025 balances, due to organic commercial loan growth net of continued runoff in the indirect consumer portfolio.

Total deposits decreased by $66.0 million, or 1.1%, to $5.7 billion as of June 30, 2025 when compared to balances as of March 31, 2025. The decrease was partially related to a decline in time deposits of $51.9 million, or 4.2% and, to a lesser extent, a modest decrease in savings and money market deposits of $7.0 million, or 0.4%. Non-interest bearing deposit balances remained relatively unchanged in the current period. Total borrowings increased by $68.1 million during the quarter, to $880.3 million as of June 30, 2025. Balances subject to repurchase agreements increased by $7.2 million, to $95.1 million.

Capital

The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters, and the Company’s preliminary estimate of its consolidated regulatory capital ratios for the quarter ended June 30, 2025:

For the Quarter Ended	June 30,			March 31,			December 31,			September 30,
	2025*			2025			2024			2024
Consolidated Capital Ratios
Total capital (to risk-weighted assets)		14.48	%		14.26	%		13.91	%		13.45	%
Tier 1 capital (to risk-weighted assets)		12.52			12.33			12.00			11.63
Common equity tier 1 capital (to risk-weighted assets)		11.52			11.32			11.00			10.68
Tier 1 capital (to average assets)		9.59			9.25			8.88			9.02
*Preliminary estimate – may be subject to change

As of June 30, 2025, the ratio of total stockholders’ equity to total assets is 10.34%. Book value per common share was $18.06, increasing $0.34 during the second quarter of 2025.

Tangible common equity³ totaled $627.1 million at June 30, 2025, and the ratio of tangible common equity to tangible assets¹ was 8.37% at June 30, 2025, up from 8.19% at March 31, 2025. Tangible book value, which excludes intangible assets from total equity, per common share¹ was $14.32, increasing $0.36 during the second quarter of 2025 behind the growth in retained earnings.

Credit Quality

As of June 30, 2025, total non-accrual loans decreased by $4.5 million, or 15.7%, from March 31, 2025, to 0.49% of total loans HFI. Total non-performing assets decreased $3.9 million, or 12.4%, to $27.5 million, compared to $31.4 million as of March 31, 2025. The ratio of non-performing assets to total assets decreased to 0.36% compared to 0.41% as of March 31, 2025.

As of June 30, 2025, net charge-offs decreased by $0.6 million to $0.3 million, compared to $0.9 million as of March 31, 2025 and remain just 0.02% annualized of average loans.

^{____________________________________
1} Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

Earnings Conference Call

As previously announced, Horizon will host a conference call to review its second quarter financial results and operating performance.

Participants may access the live conference call on July 24, 2025 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp, Inc. Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

A telephone replay of the call will be available approximately one hour after the end of the conference through August 1, 2025. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 5878909.

About Horizon Bancorp, Inc.

Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.7 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

Use of Non-GAAP Financial Measures

Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to one-time costs and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

Forward Looking Statements

This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: effects on Horizon’s business resulting from new U.S. domestic or foreign governmental trade measures, including but not limited to tariffs, import and export controls, foreign exchange intervention accomplished to offset the effects of trade policy or in response to currency volatility, and other restrictions on free trade; uncertain conditions within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.


	Condensed Consolidated Statements of Income
	(Dollars in Thousands Except Per Share Data, Unaudited)
	Three Months Ended
	June 30,		March 31,			December 31,			September 30,			June 30,
	2025		2025			2024			2024			2024
Interest Income
Loans receivable	$	78,618	$	74,457		$	76,747		$	75,488		$	71,880
Investment securities – taxable		5,941		6,039			6,814			8,133			7,986
Investment securities – tax-exempt		6,088		6,192			6,301			6,310			6,377
Other		830		2,487			3,488			957			738
Total interest income		91,477		89,175			93,350			90,888			86,981
Interest Expense
Deposits		26,053		25,601			27,818			30,787			28,447
Borrowed funds		8,171		9,188			10,656			11,131			11,213
Subordinated notes		829		829			829			830			829
Junior subordinated debentures issued to capital trusts		1,070		1,290			920			1,230			1,213
Total interest expense		36,123		36,908			40,223			43,978			41,702
Net Interest Income		55,354		52,267			53,127			46,910			45,279
Provision for credit loss expense		2,462		1,376			1,171			1,044			2,369
Net Interest Income after Provision for Credit Losses		52,892		50,891			51,956			45,866			42,910
Non-interest Income
Service charges on deposit accounts		3,208		3,208			3,276			3,320			3,130
Wire transfer fees		69		71			124			123			113
Interchange fees		3,403		3,241			3,353			3,511			3,826
Fiduciary activities		1,251		1,326			1,313			1,394			1,372
Gains (losses) on sale of investment securities		—		(407	)		(39,140	)		—			—
Gain on sale of mortgage loans		1,219		1,076			1,071			1,622			896
Mortgage servicing income net of impairment		375		385			376			412			450
Increase in cash value of bank owned life insurance		346		335			335			349			318
Other income		1,049		7,264			338			780			380
Total non-interest income (loss)		10,920		16,499			(28,954	)		11,511			10,485
Non-interest Expense
Salaries and employee benefits		22,731		22,414			25,564			21,829			20,583
Net occupancy expenses		3,127		3,702			3,431			3,207			3,192
Data processing		2,951		2,872			2,841			2,977			2,579
Professional fees		735		826			736			676			714
Outside services and consultants		3,278		3,265			4,470			3,677			3,058
Loan expense		1,231		689			1,285			1,034			1,038
FDIC insurance expense		1,216		1,288			1,193			1,204			1,315
Core deposit intangible amortization		816		816			843			844			844
Merger related expenses		—		305			—			—			—
Other losses		245		228			371			297			515
Other expense		3,087		2,901			4,201			3,527			3,684
Total non-interest expense		39,417		39,306			44,935			39,272			37,522
Income (Loss) Before Income Taxes		24,395		28,084			(21,933	)		18,105			15,873
Income tax expense (benefit)		3,752		4,141			(11,051	)		(75	)		1,733
Net Income (Loss)	$	20,643	$	23,943		$	(10,882	)	$	18,180		$	14,140
Basic Earnings (Loss) Per Share	$	0.47	$	0.55		$	(0.25	)	$	0.42		$	0.32
Diluted Earnings (Loss) Per Share		0.47		0.54			(0.25	)		0.41			0.32

	Condensed Consolidated Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended for the Period
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
Assets
Interest earning assets
Federal funds sold	$	2,024		$	—		$	—		$	113,912		$	34,453
Interest earning deposits		34,174			80,023			201,131			12,107			4,957
Interest earning time deposits		—			—			735			735			1,715
Federal Home Loan Bank stock		45,412			45,412			53,826			53,826			53,826
Investment securities, available for sale		231,999			231,431			233,677			541,170			527,054
Investment securities, held to maturity		1,819,087			1,843,851			1,867,690			1,888,379			1,904,281
Loans held for sale		2,994			3,253			67,597			2,069			2,440
Gross loans held for investment (HFI)		4,985,582			4,909,815			4,847,040			4,803,996			4,822,840
Total Interest earning assets		7,121,272			7,113,784			7,271,696			7,416,194			7,351,566
Non-interest earning assets
Allowance for credit losses		(54,399	)		(52,654	)		(51,980	)		(52,881	)		(52,215	)
Cash		101,719			89,643			92,300			108,815			106,691
Cash value of life insurance		37,755			37,409			37,450			37,115			36,773
Other assets		148,773			143,675			152,635			119,026			165,656
Goodwill		155,211			155,211			155,211			155,211			155,211
Other intangible assets		8,592			9,407			10,223			11,067			11,910
Premises and equipment, net		93,398			93,499			93,864			93,544			93,695
Interest receivable		39,730			38,663			39,747			39,366			43,240
Total non-interest earning assets		530,779			514,855			529,450			511,263			560,961
Total assets	$	7,652,051		$	7,628,639		$	7,801,146		$	7,927,457		$	7,912,526
Liabilities
Savings and money market deposits	$	3,385,413		$	3,393,371		$	3,446,681		$	3,420,827		$	3,364,726
Time deposits		1,193,180			1,245,088			1,089,153			1,220,653			1,178,389
Borrowings		880,336			812,218			1,142,340			1,142,744			1,229,165
Repurchase agreements		95,089			87,851			89,912			122,399			128,169
Subordinated notes		55,807			55,772			55,738			55,703			55,668
Junior subordinated debentures issued to capital trusts		57,583			57,531			57,477			57,423			57,369
Total interest earning liabilities		5,667,408			5,651,832			5,881,301			6,019,749			6,013,486
Non-interest bearing deposits		1,121,163			1,127,324			1,064,818			1,085,535			1,087,040
Interest payable		14,007			11,441			11,137			11,400			11,240
Other liabilities		58,621			61,981			80,308			55,951			74,096
Total liabilities		6,861,199			6,852,578			7,037,564			7,172,635			7,185,862
Stockholders’ Equity
Preferred stock		—			—			—			—			—
Common stock		—			—			—			—			—
Additional paid-in capital		360,758			360,522			363,761			358,453			357,673
Retained earnings		466,497			452,945			436,122			454,050			442,977
Accumulated other comprehensive (loss)		(36,403	)		(37,406	)		(36,301	)		(57,681	)		(73,985	)
Total stockholders’ equity		790,852			776,061			763,582			754,822			726,665
Total liabilities and stockholders’ equity	$	7,652,051		$	7,628,639		$	7,801,146		$	7,927,457		$	7,912,527

	Loans and Deposits
	(Dollars in Thousands, Unaudited)
	June 30,		March 31,		December 31,		September 30,		June 30,		% Change
	2025		2025		2024		2024		2024		Q2’25 vs Q1’25			Q2’25 vs Q2’24
Loans:
Commercial real estate	$	2,321,951	$	2,262,910	$	2,202,858	$	2,105,459	$	2,117,772		3	%		10	%
Commercial & Industrial		976,740		918,541		875,297		808,600		786,788		6	%		24	%
Total commercial		3,298,691		3,181,451		3,078,155		2,914,059		2,904,560		4	%		14	%
Residential Real estate		786,026		801,726		802,909		801,356		797,956		(2	)%		(1	)%
Mortgage warehouse		—		—		—		80,437		68,917		—	%		(100	)%
Consumer		900,865		926,638		965,976		1,008,144		1,051,407		(3	)%		(14	)%
Total loans held for investment		4,985,582		4,909,815		4,847,040		4,803,996		4,822,840		2	%		3	%
Loans held for sale		2,994		3,253		67,597		2,069		2,440		(8	)%		23	%
Total loans	$	4,988,576	$	4,913,068	$	4,914,637	$	4,806,065	$	4,825,280		2	%		3	%

Deposits:
Interest bearing deposits	$	1,713,058	$	1,713,991	$	1,767,983	$	1,688,998	$	1,653,508		—	%		4	%
Savings and money market deposits		1,672,355		1,679,380		1,678,697		1,731,830		1,711,218		—	%		(2	)%
Time deposits		1,193,180		1,245,088		1,089,153		1,220,653		1,178,389		(4	)%		1	%
Total Interest bearing deposits		4,578,593		4,638,459		4,535,833		4,641,481		4,543,115		(1	)%		1	%
Non-interest bearing deposits
Non-interest bearing deposits		1,121,164		1,127,324		1,064,819		1,085,534		1,087,040		(1	)%		3	%
Total deposits	$	5,699,757	$	5,765,784	$	5,600,652	$	5,727,015	$	5,630,155		(1	)%		1	%

	Average Balance Sheet
	(Dollars in Thousands, Unaudited)
	Three Months Ended
	June 30, 2025								March 31, 2025								June 30, 2024
	Average Balance			Interest⁽⁴⁾⁽⁶⁾		Average Rate⁽⁴⁾			Average Balance			Interest⁽⁴⁾⁽⁶⁾		Average Rate⁽⁴⁾			Average Balance			Interest⁽⁴⁾⁽⁶⁾		Average Rate⁽⁴⁾
Assets
Interest earning assets
Interest earning deposits (incl. Fed Funds Sold)	$	72,993		$	830		4.56	%	$	223,148		$	2,487		4.52	%	$	55,467		$	738		5.35	%
Federal Home Loan Bank stock		45,412			1,075		9.49	%		51,769			1,012		7.93	%		53,827			1,521		11.36	%
Investment securities – taxable (1)		959,238			4,867		2.03	%		974,109			5,027		2.09	%		1,309,305			6,465		1.99	%
Investment securities – non-taxable (1)		1,100,731			7,706		2.81	%		1,120,249			7,838		2.84	%		1,132,065			8,072		2.87	%
Total investment securities		2,059,969			12,573		2.45	%		2,094,358			12,865		2.49	%		2,441,370			14,537		2.39	%
Loans receivable (2) (3)		4,947,093			79,000		6.41	%		4,865,449			74,840		6.24	%		4,662,124			72,208		6.23	%
Total interest earning assets		7,125,467			93,478		5.26	%		7,234,724			91,204		5.11	%		7,212,788			89,004		4.96	%
Non-interest earning assets
Cash and due from banks		86,316								88,624								108,319
Allowance for credit losses		(52,560	)							(51,863	)							(50,334	)
Other assets		472,175								483,765								508,555
Total average assets	$	7,631,398							$	7,755,250							$	7,779,328

Liabilities and Stockholders’ Equity
Interest bearing liabilities
Interest bearing demand deposits	$	1,727,713		$	6,803		1.58	%	$	1,750,446		$	6,491		1.50	%	$	1,656,523		$	7,081		1.72	%
Saving and money market deposits		1,651,866			8,200		1.99	%		1,674,590			8,263		2.00	%		1,677,967			9,733		2.33	%
Time deposits		1,233,582			11,050		3.59	%		1,212,386			10,847		3.63	%		1,134,590			11,633		4.12	%
Total Deposits		4,613,161			26,053		2.27	%		4,637,422			25,601		2.24	%		4,469,080			28,447		2.56	%
Borrowings		847,862			7,777		3.68	%		971,496			8,772		3.66	%		1,184,172			10,278		3.49	%
Repurchase agreements		88,058			394		1.79	%		88,469			416		1.91	%		125,144			935		3.00	%
Subordinated notes		55,785			829		5.96	%		55,750			829		6.03	%		55,647			829		5.99	%
Junior subordinated debentures issued to capital trusts		57,550			1,070		7.46	%		57,497			1,290		9.10	%		57,335			1,213		8.51	%
Total interest bearing liabilities		5,662,416			36,123		2.56	%		5,810,634			36,908		2.58	%		5,891,378			41,702		2.85	%
Non-interest bearing liabilities
Demand deposits		1,114,982								1,085,826								1,080,676
Accrued interest payable and other liabilities		64,465								78,521								80,942
Stockholders’ equity		789,535								780,269								726,332
Total average liabilities and stockholders’ equity	$	7,631,398							$	7,755,250							$	7,779,328
Net FTE interest income (non-GAAP) (5)				$	57,355							$	54,296							$	47,302
Less FTE adjustments (4)					2,001								2,029								2,023
Net Interest Income				$	55,354							$	52,267							$	45,279
Net FTE interest margin (Non-GAAP) (4)(5)							3.23	%							3.04	%							2.64	%

⁽¹⁾ Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
⁽²⁾ Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
⁽³⁾ Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
⁽⁴⁾ Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.
⁽⁵⁾ Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
⁽⁶⁾ Includes dividend income on Federal Home Loan Bank stock

	Credit Quality
	(Dollars in Thousands Except Ratios, Unaudited)
	Quarter Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			% Change
	2025			2025			2024			2024			2024			Q2’25 vs Q1’25			Q2’25 vs Q2’24
Non-accrual loans
Commercial	$	7,547		$	8,172		$	5,658		$	6,830		$	4,321			(8	)%		75	%
Residential Real estate		9,525			12,763			11,215			9,529			8,489			(25	)%		12	%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		7,222			7,875			8,919			7,208			5,453			(8	)%		32	%
Total non-accrual loans		24,294			28,810			25,792			23,567			18,263			(16	)%		33	%
90 days and greater delinquent – accruing interest		2,113			1,582			1,166			819			1,039			34	%		103	%
Total non-performing loans	$	26,407		$	30,392		$	26,958		$	24,386		$	19,302			(13	)%		37	%

Other real estate owned
Commercial	$	176		$	360		$	407		$	1,158		$	1,111			(51	)%		(84	)%
Residential Real estate		463			641			—			—			—			—	%		—	%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		480			34			17			36			57			1311	%		742	%
Total other real estate owned		1,119			1,035			424			1,194			1,168			8	%		(4	)%

Total non-performing assets	$	27,526		$	31,427		$	27,382		$	25,580		$	20,470			(12	)%		34	%

Loan data:
Accruing 30 to 89 days past due loans	$	31,401		$	19,034		$	23,075		$	18,087		$	19,785			65	%		59	%
Substandard loans		64,100			66,714			64,535			59,775			51,221			(4	)%		25	%
Net charge-offs (recoveries)
Commercial	$	84		$	(47	)	$	(32	)	$	(52	)	$	57			(279	)%		47	%
Residential Real estate		52			(47	)		(10	)		(9	)		(4	)		(211	)%		(1400	)%
Mortgage warehouse		—			—			—			—			—			—	%		—	%
Consumer		118			963			668			439			534			(88	)%		(78	)%
Total net charge-offs	$	254		$	869		$	626		$	378		$	587			(71	)%		(57	)%

Allowance for credit losses
Commercial	$	34,413		$	32,640		$	30,953		$	32,854		$	31,941			5	%		8	%
Residential Real estate		3,229			3,167			2,715			2,675			2,588			2	%		25	%
Mortgage warehouse		—			—			—			862			736			—	%		(100	)%
Consumer		16,757			16,847			18,312			16,490			16,950			(1	)%		(1	)%
Total allowance for credit losses	$	54,399		$	52,654		$	51,980		$	52,881		$	52,215			3	%		4	%

Credit quality ratios
Non-accrual loans to HFI loans		0.49	%		0.59	%		0.53	%		0.49	%		0.38	%
Non-performing assets to total assets		0.36	%		0.41	%		0.35	%		0.32	%		0.26	%
Annualized net charge-offs of average total loans		0.02	%		0.07	%		0.05	%		0.03	%		0.05	%
Allowance for credit losses to HFI loans		1.09	%		1.07	%		1.07	%		1.10	%		1.08	%

Non–GAAP Reconciliation of Net Fully-Taxable Equivalent (“FTE”) Interest Margin
(Dollars in Thousands, Unaudited)

		Three Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Interest income (GAAP)	(A)	$	91,477		$	89,175		$	93,350		$	90,888		$	86,981
Taxable-equivalent adjustment:
Investment securities – tax exempt (1)			1,619			1,646			1,675			1,677			1,695
Loan receivable (2)			382			383			395			340			328
Interest income (non-GAAP)	(B)		93,478			91,204			95,420			92,905			89,004
Interest expense (GAAP)	(C)		36,123			36,908			40,223			43,978			41,702
Net interest income (GAAP)	(D) =(A) – (C)	$	55,354		$	52,267		$	53,127		$	46,910		$	45,279
Net FTE interest income (non-GAAP)	(E) = (B) – (C)	$	57,355		$	54,296		$	55,197		$	48,927		$	47,302
Average interest earning assets	(F)		7,125,467			7,234,724			7,396,178			7,330,263			7,212,788
Net FTE interest margin (non-GAAP)	(G) = (E*) / (F)		3.23	%		3.04	%		2.97	%		2.66	%		2.64	%

⁽¹⁾ The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
⁽²⁾ The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
*Annualized

Non–GAAP Reconciliation of Return on Average Tangible Common Equity
(Dollars in Thousands, Unaudited)

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

Net income (loss) (GAAP)	(A)	$	20,643		$	23,941		$	(10,882	)	$	18,180		$	14,140

Average stockholders’ equity	(B)	$	789,535		$	780,269		$	755,340		$	738,372		$	726,332
Average intangible assets	(C)		164,320			165,138			165,973			166,819			167,659
Average tangible equity (Non-GAAP)	(D) = (B) – (C)	$	625,215		$	615,131		$	589,367		$	571,553		$	558,673
Return on average tangible common equity (“ROACE”) (non-GAAP)	(E) = (A*) / (D)		13.24	%		15.48	%	(7.35		)%		12.65	%		10.18	%
*Annualized

Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
(Dollars in Thousands, Unaudited)
		Three Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Total stockholders’ equity (GAAP)	(A)	$	790,852		$	776,061		$	763,582		$	754,822		$	726,665
Intangible assets (end of period)	(B)		163,802			164,618			165,434			166,278			167,121
Total tangible common equity (non-GAAP)	(C) = (A) – (B)	$	627,050		$	611,443		$	598,148		$	588,544		$	559,544

Total assets (GAAP)	(D)	$	7,652,051		$	7,628,636		$	7,801,146		$	7,927,457		$	7,912,527
Intangible assets (end of period)	(B)		163,802			164,618			165,434			166,278			167,121
Total tangible assets (non-GAAP)	(E) = (D) – (B)	$	7,488,249		$	7,464,018		$	7,635,712		$	7,761,179		$	7,745,406

Tangible common equity to tangible assets (Non-GAAP)	(G) = (C) / (E)		8.37	%		8.19	%		7.83	%		7.58	%		7.22	%

Non–GAAP Reconciliation of Tangible Book Value Per Share
(Dollars in Thousands, Unaudited)
		Three Months Ended
		June 30,		March 31,		December 31,		September 30,		June 30,
		2025		2025		2024		2024		2024
Total stockholders’ equity (GAAP)	(A)	$	790,852	$	776,061	$	763,582	$	754,822	$	726,665
Intangible assets (end of period)	(B)		163,802		164,618		165,434		166,278		167,121
Total tangible common equity (non-GAAP)	(C) = (A) – (B)	$	627,050	$	611,443	$	598,148	$	588,544	$	559,544
Common shares outstanding	(D)		43,801,507		43,786,000		43,722,086		43,712,059		43,712,059

Tangible book value per common share (non-GAAP)	(E) = (C) / (D)	$	14.32	$	13.96	$	13.68	$	13.46	$	12.80

Contact:	John R. Stewart, CFA
	EVP, Chief Financial Officer
Phone:	(219) 814–5833
Fax:	(219) 874–9280
Date:	July 23, 2025

The MIL Network –

July 24, 2025

MIL-OSI United Kingdom: PM call with President Sandu of the Republic of Moldova: 23 July 2025

Source: United Kingdom – Executive Government & Departments

Press release

PM call with President Sandu of the Republic of Moldova: 23 July 2025

The Prime Minister met the President of the Republic of Moldova, Maia Sandu, this afternoon.

Discussing Russia’s illegal war in Ukraine, the leaders agreed to work closely to stop the spread of malign disinformation and illicit finance, and the Prime Minister underscored the need to sanction those who seek to undermine democracy.

The Prime Minister updated the President on the progress of the Coalition of the Willing, and how all must ensure Ukraine is in the strongest possible position now and going forwards. The leaders discussed the effectiveness of sanctions on stopping Putin’s war machine, and how the international community must ramp up the pressure.

The leaders agreed on the importance of an unconditional ceasefire and the necessity of a just and lasting peace in Ukraine.

They looked forward to speaking soon.

Published 23 July 2025

MIL OSI United Kingdom –

July 24, 2025

MIL-OSI USA: Cotton, Colleagues Introduce Legislation to Combat Chinese Drone Market Dominance

US Senate News:

Source: United States Senator for Arkansas Tom Cotton

FOR IMMEDIATE RELEASE
Contact: Caroline Tabler or Patrick McCann (202) 224-2353
July 23, 2025

Cotton, Colleagues Introduce Legislation to Combat Chinese Drone Market Dominance

Washington, DC — Senators Tom Cotton (R-Arkansas), Chris Coons (D-Delaware), and John Cornyn (R-Texas) today introduced the Leading Exports of Aerial Drones Act, or LEAD Act, legislation that would make it easier for American companies to sell unmanned aerial systems (UAS) to American allies and partners.

“The current restrictions on UAS sales to allies and partners are outdated and put American companies at a disadvantage, all while ceding the market to Communist China. This bill will spur American business and innovation while decreasing global dependence on Chinese military technology,” said Senator Cotton.

“Drones aren’t just the future of warfare—as we’re seeing in Ukraine, they’re its present, too. Against the backdrop of increasing alignment between Russia, China, Iran, and North Korea, we must ensure that the United States and our allies and partner have the weapons systems and munitions we need to defend ourselves. This bill is a first step towards the objective of greater military production, integration, and deterrence for the United States and our allies in an increasingly dangerous world,” said Senator Coons.

“This commonsense legislation would cut red tape to make drone technology more accessible and foster greater strategic defense cooperation with our allies, and I’m glad to support it,” said Senator Cornyn.

Bill text is here.

The LEAD Act would:

Direct changes to the Arms Control Act, the United States Munitions List, and the Missile Technology Control Regime to require UAS be treated as manned aircraft and separately from missile technology for the purposes of defense transfers.

MIL OSI USA News –

July 24, 2025

MIL-OSI Europe: Ukrainian school in southwestern city of Chernivtsi reopens after major EU funded renovation

Source: European Investment Bank

School in Ukrainian city of Chernivtsi in southwestern Ukraine reopens after €930,000 renovation funded by EIB
Upgrades to Gymnasium No. 20 improve conditions for more than 400 students and teachers
Project covered by EIB’s €200 million Ukraine Early Recovery Programme

A school in the southwestern Ukrainian city of Chernivtsi reopened today after major upgrades funded by the European Investment Bank (EIB). Gymnasium No. 20 – a primary and middle school – underwent a €930,000 renovation that improved conditions for more than 400 students and teachers.

Among the students, who range in age from six to 15, are children who have been displaced by Russia’s full-scale invasion of Ukraine in 2022.

The works included equipping the school building with full thermal insulation, a new roof, energy‑efficient windows and doors and a heating system that better regulates indoor temperatures and reduces energy costs. In addition, a new ramp and repaired entrances facilitated access to the premises, particularly for more than 10 children with disabilities.

“The EIB plays a key role in helping Ukrainian municipalities restore essential social infrastructure,” said EIB Vice-President Teresa Czerwińska, who oversees the bank’s operations in Ukraine. “The renovated school in Chernivtsi is a clear example of how our support brings safer and more inclusive spaces for children to learn and thrive, even in challenging times.”

The upgrades to Gymnasium No. 20 were completed in six months under a €200 million EIB initiative called the Ukraine Early Recovery Programme. The programme is one of three joint European Union‑EIB recovery initiatives carried out with the Ukrainian Ministry for Development of Communities and Territories of Ukraine, the Ministry of Finance and local authorities in participating cities, with technical support from the United Nations Development Programme (UNDP).

“Reopening this school is a clear sign that recovery is happening on the ground,” said Deputy Prime Minister for Restoration of Ukraine and Minister for Communities and Territories Development of Ukraine Oleksii Kuleba. “Together with our European partners, we are creating safer, more resilient communities for Ukrainians.”

Chernivtsi Mayor Roman Klichuk echoed the point: “Thanks to our European partners, more than 400 children and staff now have a warm, safe and modern school that meets their needs.”

In the Chernivtsi region, or oblast, the EIB is also funding two projects to repair administrative service centres and four projects to upgrade heating, water supply and sewage systems. These initiatives, as was the case with the renovation of Gymnasium No. 20, are being carried out in cooperation with the Chernivtsi Regional Military Administration and the Chernivtsi City Council.

“Every renovated school – like the one in Chernivtsi – is a building block in Ukraine’s recovery,” said Stefan Schleuning, Head of Cooperation at the EU Delegation to Ukraine. “Together with the EIB, we are working hand in hand with communities across the country to help rebuild a stronger Ukraine.”

“More renovations to facilities will follow to strengthen the region’s social infrastructure,” said Ruslan Zaparaniuk, head of the Chernivtsi Regional Military Administration.

“Through our partnership with the EIB and local authorities, UNDP is helping Ukraine rebuild more strongly by ensuring recovery investments enhance community resilience and establish sustainable foundations for long-term development,” said UNDP Resident Representative in Ukraine Auke Lootsma. “Projects such as this school renovation in Chernivtsi embody this approach.”

Background information

The EIB in Ukraine

Present in Ukraine since 2007, the EIB has stepped up its financial support for the country’s resilience and modernisation since Russia’s full-scale invasion of Ukraine in 2022. Since then, the EIB has provided €3.6 billion in financing, with almost two-thirds already disbursed. Through its EU for Ukraine (EU4U) Initiative, coupled with its key role in implementing a dedicated window under Pillar 2 of the Ukraine Facility, the EIB is strongly committed to stepping up and accelerating its activities in line with the mandate given by EU leaders and in close cooperation with the European Commission, the European Parliament, Member States and international partners.

EIB recovery programmes in Ukraine

The reconstruction of the gymnasium in Chernivtsi was carried out under the Ukraine Early Recovery Programme, one of three recovery initiatives supported by the European Investment Bank (EIB). As of July 2025, the EIB has provided €740 million through these programmes to support Ukraine’s recovery. The funding helps the government to restore essential services in communities across the country – including schools, kindergartens, hospitals, housing, heating and water systems. These EIB-backed programmes are further supported by €15 million in EU grants to facilitate implementation. The Ministry for Development of Communities and Territories of Ukraine, in cooperation with the Ministry of Finance, coordinates and oversees programme implementation, while local authorities and self-governments are responsible for managing recovery sub-projects. The United Nations Development Programme (UNDP) in Ukraine provides technical assistance to local communities, supporting project implementation and ensuring independent monitoring for transparency and accountability. More information about the programmes is available here.

Ukrainian school in southwestern city of Chernivtsi reopens after major EU funded renovation
Ukrainian school in southwestern city of Chernivtsi reopens after major EU funded renovation
©EIB
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MIL OSI Europe News –

July 24, 2025

MIL-OSI USA: Bacon Hosts Tele-Townhall on July 21, 2025?

Source: United States House of Representatives – Congressman Don Bacon (2nd District of Nebraska)

Bacon Hosts Tele-Townhall on July 21, 2025?

Washington, July 23, 2025

Bacon Hosts Tele-Townhall on July 21, 2025

Washington – Rep. Don Bacon (NE-02) hosted a tele-townhall on July 21, 2025, for the people of Nebraska’s Second Congressional district to discuss the latest issues in Congress and around the world.

During the tele-townhall, Rep. Bacon addressed several key topics including the recently passed reconciliation bill that the extended tax cuts, the recissions package, updates on the Ukraine war, immigration reform, his priorities for the remainder of his term, and much more. The tele-townhall had over 7,200 participants in addition to 414 audio streaming participants. You can listen to the entire tele-townhall here.

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MIL OSI USA News –

July 24, 2025

MIL-OSI United Kingdom: PM call with President Erdoğan of Türkiye: 22 July 2025

Source: United Kingdom – Government Statements

Press release

PM call with President Erdoğan of Türkiye: 22 July 2025

The Prime Minister spoke to the President of Türkiye Recep Tayyip Erdoğan yesterday evening.

The two leaders looked ahead to today’s International Defence Industry Fair in Istanbul, where their Defence Ministers have taken the next step towards signing a multi-billion-pound export deal of UK-built Typhoon jets to Türkiye.

The Prime Minister added that once fully finalised, this enhanced military co-operation will strengthen NATO’s collective defences and keep us safer during uncertain times, as well as sustaining 20,000 UK jobs and driving growth.

Turning to the Middle East, they discussed the intolerable situation in Gaza and underlined the urgent need for more aid and an urgent ceasefire, in order to pave the way for a two-state solution and a secure future for Palestinians and Israelis.

They reiterated their concern about the recent violence in Syria, and agreed that the ceasefire must hold.

The Prime Minister thanked the President for Türkiye’s convening role in the upcoming talks between Russia and Ukraine in Istanbul today, as well as the discussions due to take place on Iran’s nuclear programme later this week.

Published 23 July 2025

MIL OSI United Kingdom –

July 24, 2025

MIL-OSI Submissions: How the nature of environmental law is changing in defense of the planet and the climate

Source: The Conversation – USA (2) – By Dana Zartner, Professor of International Studies, University of San Francisco

A 2017 New Zealand law recognizes inherent rights of the Whanganui River. Jason Pratt, CC BY-SA

While the dangerous effects of climate change continue to worsen, legal efforts to address a range of environmental issues are also on the rise.

Headlines across the globe tout many of these legal actions: South Korea’s Climate Law Violates Rights of Future Generations; Ukraine is Ground Zero in Battle for Ecocide Law; Paris Wants to Grant the River Seine Legal Personhood; and Montana Court Rules Children Have the Right to a Healthy Environment, to name a few recent examples.

As an environmental lawyer, I see that most of these suits use one of five legal strategies that have been developed over the past couple of decades. These approaches vary in terms of who is filing the lawsuit, against whom, and whether the underlying legal perspective is based on protecting human rights or the rights of the environment itself. But they all share an innovative approach to protect all life on this planet.

1. Right to a healthy environment

In 2022, the United Nations declared that humans have “the right to a clean, healthy and sustainable environment … essential to protecting human life, well-being and dignity.” More than 150 countries have similar declarations in their constitutions or laws, often alongside protections for other human rights, such as those to education and medical care.

These rights are held by humans, so people can sue for alleged violations. Typically they sue one or more government agencies, whose responsibility it is to protect human rights.

One recent case using this approach was Held v. Montana, in which a group of young people in 2024 won a lawsuit against the state of Montana for violating the state constitution’s right to a “clean and healthful environment.” The state Supreme Court agreed with the plaintiffs and struck down a law barring the consideration of climate effects when evaluating proposals for fossil fuel extraction. Similar cases have been heard in the U.S. and other countries around the world.

Rikki Held, the lead plaintiff in the Montana case, center seated, confers with the Our Children’s Trust legal team before the start of the trial on June 12, 2023.
William Campbell/Getty Images

2. The rights of future generations

A legal concept called “intergenerational equity” is the idea that present generations must “responsibly use and conserve natural resources for the benefit of future generations.” First codified in international law in the 1972 Stockholm Declaration, the principle has been gaining popularity in recent decades. International organizations and national governments have enshrined this principle in law.

Focused on humans’ rights, these laws allow people and groups to bring claims, usually against governments, for allowing activities that are altering the environment in ways that will harm future generations. One well-known case that relied on this legal principle is Future Generations v. Ministry of the Environment and Others, in which a Colombian court in 2018 agreed with young people who had sued, finding that the Colombian government’s allowance of “rampant deforestation in the Amazon” violated the pact of intergenerational equity.

3. Government responsibility

Another human-centered approach is the public trust doctrine, which establishes “that certain natural and cultural resources are preserved for public use” and that governments have a responsibility to protect them for everyone’s benefit.

While the concept of “public trust” has long existed in the law, recently it has been used to bring suit against governments for their failure to address climate change and other environmental degradation. In Urgenda Foundation v. the State of the Netherlands, a Dutch court held in 2019 that the government has a responsibility to mitigate the effects of climate change due to the “severity of the consequences of climate change and the great risk of climate change occurring.” Since the decision, the Dutch government has sought to reduce emissions by phasing out the use of coal, increasing reliance on renewable energy and aiming to achieve carbon neutrality by 2050.

Government responsibility for the public trust was also a basis of the Juliana v. U.S. case, where a group of young people sued the U.S. government for breaching the public trust by not doing enough to curb greenhouse gas emissions. The U.S. Supreme Court ultimately declined to hear an appeal of a lower court’s ruling, but the lack of a specific ruling by the nation’s highest court has given continued hope to new cases, which continue to be filed based on the same principle.

A documentary examining the movement to protect the rights of nature.

4. Rights of nature

The rights of nature is one of the fastest-growing environmental legal strategies of the past decade. Since Ecuador recognized the rights of Pachamama, the Quechua name for Mother Earth, in its Constitution in 2008, more than 500 laws on the rights of nature have been enacted around the world.

The principle recognizes the legal rights of natural entities, such as rivers, mountains, ecosystems or even something as specific as wild rice. The laws that grant these rights don’t focus on humans but rather nature itself, often including language that the natural entity has the right to “exist and persist.”

The laws then provide a mechanism for the natural entity – whether through a specific group assigned legal guardianship or other community efforts – to protect itself by filing lawsuits in court. In the 2018 Colombian case, the court found that the Amazon ecosystem has rights, which must be respected and protected.

Similarly, in Bangladesh in 2019 the courts recognized the rights of all the country’s rivers, requiring, among other things, a halt on damaging development along the rivers that block their natural flow. The court also created a commission to serve as legal guardians of the country’s rivers.

The destruction of a dam in Ukraine, which emptied this former reservoir, is being investigated as a possible crime of ecocide.
Tarasov/Ukrinform/Future Publishing via Getty Images

5. Defining a new crime: Ecocide

In 2024, the governments of Vanuatu, Fiji and Samoa formally proposed that the international community recognize a new crime under international law. Called “ecocide,” the principle takes a nature-focused approach and includes any unlawful act committed with “the knowledge that there is a substantial likelihood of severe and either widespread or long-term damage to the environment.”

Put another way, what genocide is to humans, ecocide is to nature. It is being proposed as an addition to the 2002 Rome Statute, which created the International Criminal Court to prosecute war crimes, genocide and crimes against humanity.

While the idea is relatively new, in addition to the international efforts, several countries have incorporated ecocide into their laws – including Vietnam, France, Chile and Ukraine. A Ukrainian prosecutor is currently investigating the June 2023 destruction of a dam in a Russian-occupied area of the country as a potential crime of ecocide, because of the widespread flooding and habitat destruction that resulted.

The European Union has also incorporated ecocide into its Environmental Crime Directive, which applies to all EU member countries, providing them with a mechanism to hear ecocide claims in their national courts.

Using these ideas

Each of these legal concepts has the potential to increase protection for the environment – and the people who live in it. But determining which strategy has the greatest chance of success depends on the details of the existing law and legal system in each community.

All of these legal strategies have a role in the fight to protect and preserve the environment as an integral, interdependent living thing that is vitally important to us as humans but also in its own right.

Dana Zartner is a volunteer with the Earth Law Center assisting with the editing of toolkits and guides, but has not worked on any of its lawsuits.

– ref. How the nature of environmental law is changing in defense of the planet and the climate – https://theconversation.com/how-the-nature-of-environmental-law-is-changing-in-defense-of-the-planet-and-the-climate-258982

MIL OSI –

July 24, 2025

MIL-OSI Banking: RBI Bulletin – July 2025

Source: Reserve Bank of India

Today, the Reserve Bank released the July 2025 issue of its monthly Bulletin. The Bulletin includes four speeches, four articles and current statistics.

The four articles are: I. State of the Economy; II. Revisiting the Oil Price and Inflation Nexus in India; III. Determinants of Overnight Uncollateralised Money Market Volume- An Empirical Assessment; and IV. Household Inflation Expectations in India: Emerging Trends, Determinants and Impact of Monetary Policy.

I. State of the Economy

The global macroeconomic environment remained fluid in June and July so far amidst geo-political tensions and tariff policy uncertainties. Domestic economic activity held up, with improving kharif agricultural season prospects, continuation of strong momentum in the services sector and modest growth in industrial activity. Headline CPI inflation remained below 4 per cent for the fifth consecutive month in June driven by deflation in food prices. System liquidity remained in surplus to facilitate a faster transmission of policy rate cuts to the credit markets. The external sector remained resilient, backed by ample foreign exchange reserves and a moderate external debt-to-GDP ratio.

II. Revisiting the Oil Price and Inflation Nexus in India

By Sujata Kundu, Soumasree Tewari and Indranil Bhattacharyya

In the backdrop of volatile global crude oil prices and a less regulated petrol and diesel prices regime, this paper reassesses the impact of international crude oil price movements on headline inflation in the Indian context.

Highlights:

Since the pandemic, the global economy has experienced large gyrations in crude oil prices. India, being a net oil importer, has remained susceptible to the vagaries of global crude oil prices and has been actively intervening in the domestic fuel market to contain the adverse fallout of higher oil prices on domestic inflation and output.
Empirical estimates suggest that a 10 per cent rise in global crude oil prices could increase India’s headline inflation by around 20 basis points on a contemporaneous basis. In the post-pandemic period, the impact on inflation, although largely contained, has been statistically significant with the surge in crude oil prices owing to the post-pandemic demand revival, which further intensified due to the supply chain disruptions caused by the outbreak of the Russia-Ukraine war in early 2022.
While Government measures have limited the impact of global crude oil price fluctuations on headline inflation, increase in oil import dependency warrants measures not only to contain the spillovers to domestic prices but also to gradually transit towards alternative sources of fuel for more efficient management of domestic fuel prices in the long run.

III. Determinants of Overnight Uncollateralised Money Market Volume – An Empirical Assessment

By Srijashree Sardar and Alqama Pervez

The uncollateralised money market holds a pivotal position in India’s monetary framework, serving as the principal avenue for the exchange of central bank reserves. Its significance is further underscored by the fact that the weighted average call rate (WACR) functions as the operating target of the Reserve Bank of India’s monetary policy. Against this backdrop, the article seeks to empirically examine the factors influencing trading volumes in the unsecured interbank segment of the Indian money market.

Highlights:

The temporal distribution of trades in the call money market exhibits skewness within the day. The bulk of the trades occur in the first hour of any given day which may be attributed to the fact that primary dealers, the major borrowers in the segment, tend to fulfil their funding needs early in the day.
System liquidity conditions, spread of the weighted average call rate over the policy repo rate, divergence of overnight forward premia from interest rate differential, inflows to and outflows from government accounts, trading volume of the collateralised segment and market trading hours are found to have a significant impact on call volume during the period of the study (2019-2024).
Divergence of overnight forward premia from the interest rate differential has a positive impact on call volume, indicating arbitrage by banks during times of such divergence.
Co-operative banks participation in call money market decreased significantly after the Reserve Bank’s directive for mandatory membership on NDS-CALL trading platform for call money market activity. It has, however, rebounded in the recent months, following an increase in membership of co-operative banks.

IV. Household Inflation Expectations in India: Emerging Trends, Determinants and Impact of Monetary Policy

By Ankit Ruhi, Kanupriya Sharma and Subhadhra Sankaran

Household inflation expectations rose in the aftermath of the COVID-19 pandemic and geopolitical tensions, and have remained largely elevated since. In view of these developments, this article analyses the evolving trends in household inflation expectations. It proposes alternative methods for adjusting higher values of expectations reported in Inflation Expectations Survey of Households and identifies the key macroeconomic factors influencing these expectations. Finally, the impact of policy interventions, especially since the adoption of flexible inflation targeting (FIT) regime, is also examined.

Highlights:

Households’ inflation expectations exhibit systematic upward bias compared to those of professionals and businesses, even in periods of stable or low inflation.
Median inflation expectation and the disagreement across demographic groups is gradually moderating since 2023-24.
Perceived past inflation expectations add to stickiness in household expectations even as influence of realised inflation dynamics becomes stronger when expectations are adjusted for extreme values.
Transition to the FIT regime has successfully aided in stabilising inflation expectations. Monetary policy actions are found to effectively anchor inflation expectations.
While headline inflation is more influential than food inflation, volatile and broad-based food inflation may keep overall expectations elevated, underscoring the importance of continued policy emphasis on headline inflation.

The views expressed in the Bulletin articles are of the authors and do not represent the views of the Reserve Bank of India.

(Puneet Pancholy)
Chief General Manager

Press Release: 2025-2026/769

MIL OSI Global Banks –

July 23, 2025

MIL-OSI Russia: Ukraine Loses French Mirage 2000 Fighter Jet for the First Time

Translation. Region: Russian Federal

Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

An important disclaimer is at the bottom of this article.

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

KYIV, July 23 (Xinhua) — Ukrainian President Volodymyr Zelensky said in a video address on Wednesday that a Mirage 2000 fighter jet donated to the country by France had crashed, marking the first known loss of the type of aircraft by Ukraine.

The Ukrainian Air Force, in turn, stated on Telegram that the plane crash occurred due to equipment failure on Tuesday evening while performing a flight mission.

The pilot managed to eject and was found by a search and rescue team. His condition is assessed as stable. There are no casualties on the ground.

A special commission has been created to determine the causes of the accident.

The Mirage 2000 is a fourth-generation multirole fighter jet. It is capable of carrying long-range Storm Shadow/SCALP-EG cruise missiles. Ukraine received its first batch of Mirage 2000 aircraft in February this year. –0–

Please note: This information is raw content obtained directly from the source of the information. It is an accurate report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

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MIL OSI Russia News –

July 23, 2025

MIL-OSI China: Walaza crowned in 100m, USA claim 4 more swimming golds at Universiade

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

Bayanda Walaza sprinted to the men’s 100m title to give South Africa its third gold medal at the Rhine-Ruhr World University Games, while Team USA continued to dominate the swimming pool with four more golds on Tuesday night.

The Paris 2024 Olympian and world junior champion crossed the line in 10.16 seconds, edging Thailand’s Puripol Boonson (10.22), the same rival he beat at last year’s under-20 global competition in Peru. Asian champion Hiroki Yanagita finished third, just 0.01 seconds behind Boonson.

“I feel glorified. I believe in winning. As soon as I was on that [start] line, I was looking at that finish line. My mind was there. I need to cross it before everyone,” said Walaza, who, at just 18, ran the leadoff leg in the men’s 4x100m relay final to help South Africa claim silver at Paris 2024.

Ai Yanhan (3rd L) of China competes during the women’s 200m freestyle final of swimming at the Rhine-Ruhr 2025 FISU World University Games in Berlin, Germany, July 22, 2025. (Xinhua/Du Zheyu)

Walaza became just the ninth South African to break the 10-second barrier in the 100m when he clocked 9.94 in Zagreb in May. Weeks earlier, he set a national junior record of 20.08 in the 200m.

Australia’s Georgia Harris won the women’s 100m in 11.44, ahead of Poland’s Magdalena Stefanowicz (11.49) and South Africa’s Gabriella Marais (11.51).

Germany claimed a one-two finish in the men’s discus, with Mika Sosna winning gold with a throw of 64.26 meters and Steven Richter taking silver at 61.77. Ukraine’s Mykhailo Brudin posted a season-best 60.71 to earn bronze.

The women’s long jump podium was separated by just three centimeters. Portugal’s Agate Sousa leaped 6.60 meters, two centimeters ahead of China’s Asian Games champion Xiong Shiqi, who finished one centimeter ahead of Spain’s Natalia Gonzalez.

“It’s a pity to miss the top place by just two centimeters,” said Xiong, who earned China’s first athletics medal at the Games. “But the result is compatible with my capability and my expectation. I want to inspire my teammates in the upcoming track and field competitions with this very first medal in the stadium for China.”

Swedish Olympian Axelina Johansson won the women’s shot put with a throw of 18.45 meters. American top qualifier Abria Smith followed with 17.38, while South Africa’s Colette Uys claimed bronze at 17.34, narrowly ahead of compatriot Mine de Klerk by one centimeter.

Seven finals were contested in the pool, with Team USA winning four. The American men continued their relay dominance with a record-breaking win in the 4x200m freestyle, finishing in 7:04.51 to break the previous Games mark of 7:05.49 set by Russia in 2013.

Cavan Gormsen surged from eighth to first on the back half of the women’s 200m freestyle, winning gold for the U.S. in 1:57.21. She closed the final 50 meters in 29.13 to pass three swimmers and edge China’s Ai Yanhan by 0.3 seconds.

Leah Shackley broke her own day-old meet record to win the women’s 50m backstroke in 27.31 seconds, trimming 0.3 off her semifinal time of 27.66.

In the women’s 200m individual medley, another American, Leah Hayes, won gold in 2:09.48, improving on her Games record from the semifinal.

Competing as a neutral athlete, Aleksandr Stepanov won his second freestyle distance title of the meet with victory in the men’s 800m in 7:46.51, finishing nearly four seconds ahead of Italy’s Tommaso Griffante.

Italy’s Gianmarco Sansone claimed gold in the men’s 100m butterfly with a personal-best 51.40. Germany’s Bjorn Kammann finished second in 51.70, followed by Uzbekistan’s Eldorbek Usmonov (51.84).

Federico Rizzardi earned Italy’s second gold of the session, winning the men’s 50m breaststroke in 27.14, nearly 0.2 seconds ahead of the field.

In diving, China’s Zhang Wenao won gold in the men’s 1m springboard with 425.85 points, followed by teammate Hu Yukang (368.75). Germany’s Tim Axur took bronze with 354.80.

South Korea claimed its fifth fencing gold by edging France 45-43 in the women’s sabre team event. Italy secured its third fencing title with a commanding 45-20 win over Poland in the men’s foil team final.

The top three on the medal table remained unchanged after the sixth day of competition. The U.S. leads with 21 golds (20 in swimming), 12 silvers and 20 bronzes, followed by China (12-17-4) and South Korea (11-5-13). Host Germany sits fourth with seven golds, six silvers and eight bronzes.

MIL OSI China News –

July 23, 2025

MIL-OSI: Tensor Processing Unit (TPU) Market Set to Hit USD 24.1 Billion by 2032, Growing at 31.90% CAGR, Fueled by Rapid AI and Machine Learning Adoption | AnalystView Market Insights

Source: GlobeNewswire (MIL-OSI)

San Francisco, USA, July 23, 2025 (GLOBE NEWSWIRE) — The global Tensor Processing Unit (TPU) Market is poised for substantial growth, with projections indicating a compound annual growth rate (CAGR) of 31.90%, reaching a market value of approximately USD 24,097.31 million by 2032. TPUs, or Tensor Processing Units, are highly specialized application-specific integrated circuits (ASICs) originally developed by Google to address the increasing demands of artificial intelligence (AI) and machine learning (ML) workloads.

Unlike traditional CPUs and GPUs, Tensor Processing Units (TPUs) are engineered to accelerate tensor operations—the core of neural network training and inference—by efficiently executing large-scale matrix multiplications with minimal power usage. This specialized architecture makes TPUs ideal for deep learning across industries such as healthcare (advanced imaging diagnostics), finance (algorithmic trading and fraud detection), automotive, and telecommunications.

On the government front, federal support is strong: the FY 2025 U.S. budget proposes hundreds of millions for foundational AI R&D via the NSF, AI talent initiatives, and the National AI Research Resource pilot. Additionally, in May 2024, Senate leaders called for at least USD 32 billion per year in non‑defense AI funding to maintain U.S. leadership. These commitments, combined with private-sector uptake, are accelerating TPU adoption nationwide.

Grab a Complimentary Sample Report PDF @ https://analystviewmarketinsights.com/request_sample/AV3789

Market Key Players- Detailed Competitive Insights

Amazon Web Services, Inc.
Google Inc.
Graphcore
IBM Corporation
Intel Corporation
Micron Technology
Microsoft Corporation
NVIDIA Corporation
Qualcomm Technologies
Xilinx Inc.
Others

Why TPUs Are Gaining Momentum

Unlike general-purpose CPUs and GPUs, TPUs are engineered specifically to handle large-scale matrix operations required in artificial intelligence (AI) applications. Their architecture is tailored to perform these operations with superior efficiency and lower energy consumption, making them a preferred choice for AI model training and inference. This specialized capability enables significantly faster processing of data, accelerating development cycles in AI and reducing infrastructure costs.

With the AI industry poised to contribute over $14 trillion to the global economy by 2035, the demand for high-performance, scalable, and energy-efficient computing solutions like TPUs is accelerating. These processors are already widely adopted in data centers, cloud AI platforms, and AI research environments, acting as the backbone for high-speed machine learning tasks.

Widespread Adoption Across Key Sectors

The impact of TPUs extends across multiple industries:

Healthcare: Enhancing diagnostics, image recognition, and real-time patient data analysis.
Finance: Powering fraud detection systems, algorithmic trading platforms, and real-time risk analytics.
Automotive: Enabling autonomous driving systems through high-speed data processing.
Manufacturing & Logistics: Driving real-time automation and predictive analytics in smart factories.

Cloud platforms like Google Cloud TPU, AWS Inferentia, and Microsoft Azure AI Infrastructure are offering TPUs as-a-service, allowing organizations to scale their AI capabilities without hefty hardware investments.

Driving the Future of Edge Computing and IoT

The role of TPUs is also expanding into edge computing and Internet of Things (IoT) deployments. These chips enable AI models to operate locally on edge devices, reducing data transmission delays and enhancing real-time decision-making. In smart cities, autonomous vehicles, and connected devices, TPUs are crucial for low-latency, high-efficiency AI operations at the network edge.

As smart infrastructure and IoT ecosystems expand, TPUs will become even more integral in delivering real-time intelligence, particularly in mission-critical environments such as traffic management, remote diagnostics, and predictive maintenance.

Competitive Strategies and Market Trends

To remain competitive, key players in the TPU market are investing in:

Strategic Partnerships: Collaborating with cloud providers and AI software developers to integrate TPUs seamlessly into broader ecosystems.
Product Innovation: Designing next-gen TPUs with enhanced performance for tasks like generative AI, large language models, and advanced analytics.
Vertical Integration: Major tech firms such as Google, Amazon, and Apple are increasingly bringing TPU development in-house to optimize cost, performance, and control over their AI stacks.

A notable trend is the rise of custom TPU designs, where companies develop hardware specifically tailored to niche AI applications. Whether it’s accelerating natural language processing or optimizing vision models for robotics, these customized chips deliver precise performance gains.

Market Outlook and Future Prospects

With AI adoption accelerating across multiple industries, the demand for Tensor Processing Units (TPUs) is expected to grow exponentially. According to projections from the U.S. Department of Commerce, the global AI market could reach USD 190.6 billion by 2025, positioning TPUs as a foundational technology in this expansion.

Designed for high-speed, energy-efficient processing of complex tensor operations, TPUs enable faster training and deployment of advanced AI models. As businesses increasingly adopt data-driven strategies, TPUs are powering applications across healthcare, finance, automotive, and telecommunications, improving efficiency, decision-making, and scalability. This unique capability ensures TPUs will remain integral to the next wave of AI innovation.

TABLE OF CONTENT:

1. Tensor Processing Unit Market Overview
1.1. Study Scope
1.2. Market Estimation Years
2. Executive Summary
2.1. Market Snippet
2.1.1. Tensor Processing Unit Market Snippet by Deployment
2.1.2. Tensor Processing Unit Market Snippet by Application
2.1.3. Tensor Processing Unit Market Snippet by End User
2.1.4. Tensor Processing Unit Market Snippet by Country
2.1.5. Tensor Processing Unit Market Snippet by Region
2.2. Competitive Insights
3. Tensor Processing Unit Key Market Trends
3.1. Tensor Processing Unit Market Drivers
3.1.1. Impact Analysis of Market Drivers
3.2. Tensor Processing Unit Market Restraints
3.2.1. Impact Analysis of Market Restraints
3.3. Tensor Processing Unit Market Opportunities
3.4. Tensor Processing Unit Market Future Trends
4. Tensor Processing Unit Industry Study
4.1. PEST Analysis
4.2. Porter’s Five Forces Analysis
4.3. Growth Prospect Mapping
4.4. Regulatory Framework Analysis
5. Tensor Processing Unit Market: Impact of Escalating Geopolitical Tensions
5.1. Impact of COVID-19 Pandemic
5.2. Impact of Russia-Ukraine War
5.3. Impact of Middle East Conflicts
6. Tensor Processing Unit Market Landscape
6.1. Tensor Processing Unit Market Share Analysis, 2024
6.2. Breakdown Data, by Key Manufacturer
6.2.1. Established Players’ Analysis
6.2.2. Emerging Players’ Analysis……

Unlock insights into territorial performance, business segmentation, and player analysis.@ https://www.analystviewmarketinsights.com/reports/report-highlight-tensor-processing-unit-market

Key Report Benefits:

In-depth analysis of top market players and strategic initiatives
Comprehensive regional outlook and growth hotspots
Insights into emerging TPU applications in cloud, edge, and industry-specific solutions
Future projections and competitive landscape assessments

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The MIL Network –

July 23, 2025

MIL-OSI China: Russia expands entry ban list in response to EU’s new sanctions

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

Russia has substantially expanded its entry ban list of representatives of EU institutions and member states, as well as other European countries, the Russian foreign ministry said Tuesday.

The list includes members of law enforcement agencies, government and commercial organisations, and citizens of EU member countries and other Western countries responsible for “supplying military aid to Kiev, facilitating deliveries of dual-purpose products to Ukraine, engaging in activities aimed at undermining Russia’s territorial integrity, or organising blockades against Russian vessels and cargo in the Baltic Sea,” said the ministry in a statement in response to the EU’s 17th and 18th packages of sanctions against Russia.

It includes representatives of EU bodies, national authorities of EU countries and other European states involved in politically motivated prosecution of Russian officials for alleged “illegal detentions and deportations from Ukrainian territory,” those supporting the creation of a so-called “tribunal” against the Russian leadership, and advocates of confiscating Russian state assets or redirecting revenues from them to the benefit of Kiev, it said.

The list also covers individuals responsible for drafting or enforcing anti-Russia sanctions, those attempting to damage Russia’s relations with other states, outspoken Russophobic activists and representatives of the academic community, as well as EU and European Parliament deputies who have voted for anti-Russia resolutions and draft laws, it added.

“Further sanctions-related decisions by the EU will also be met with a timely and appropriate response,” said the ministry.

The Council of the European Union approved the 17th and 18th packages of sanctions on Russia on May 20 and July 18, respectively.

The 18th package of sanctions blacklisted over 50 individuals and entities. The price cap for Russian oil was reduced from 60 U.S. dollars to 47.6 U.S. dollars per barrel. The EU also banned the import of petroleum products made of Russian oil.

MIL OSI China News –

July 23, 2025

MIL-OSI USA: Rep. Doggett Appointed to U.S. Helsinki Commission

Source: United States House of Representatives – Congressman Lloyd Doggett (D-TX)

Contact: Alexis Torres

Washington, D.C.—U.S. Representative Lloyd Doggett (D-Texas) announced his appointment to serve on the Commission on Security and Cooperation in Europe, also known as the Helsinki Commission. Created in 1976, this independent U.S. Government agency monitors compliance and advancement of human rights, democracy, economic, environmental, and military cooperation in the 57-nation Organization for Security and Cooperation in Europe (OSCE) region.

“I am pleased to represent Austin, a vibrant international community, in an international organization founded upon the defense of human rights and fundamental freedoms. With an authoritarian president at home and so many troubling conflicts abroad, the Helsinki Commission offers me another forum for engaging with its mission of democracy promotion, international cooperation, and peaceful conflict resolution,” said Rep. Doggett. “As some urge ‘go-it-alone’ and others promote isolationism, I believe our security can be assured only through collaboration with our allies and strong diplomacy with our adversaries.”

Throughout his career, Rep. Doggett has been a strong champion for the rule of law, international human rights, and peace. Previously, he led whip efforts against President George W. Bush’s disastrous invasion of Iraq, warning of the consequences of what would become the worst foreign policy decision in American history. He was a leader in House efforts to protect the Iran nuclear agreement, formally known as the Joint Comprehensive Plan of Action (JCPOA), which was successfully negotiated during the Obama administration, but later rejected by President Trump. His name is also on the first sanctions legislation against Russia following its invasion of Ukraine. The Congressman was also a frequent participant in previous Helsinki Commission events, such as its Parliamentary Assembly and an investigation of Russian war crimes conducted in the same historic Nuremberg, Germany courtroom in which Nazi war criminals were once convicted.

Congress originally created the Helsinki Commission in response to dissidents in the Soviet Union and its Eastern European allies, who saw the Helsinki Final Act as a new opportunity to hold governments accountable for their human rights records. The end of the Cold War allowed the Commission to expand its commitment to new areas, such as free and fair elections, energy security and the environment, and combating corruption and terrorism. The Commission is currently chaired by Senator Roger Wicker (R-MS), Chair of the Senate Armed Services Committee. It also consists of members from the United States Senate and U.S. House of Representatives, as well as the Departments of State, Defense, and Commerce.

MIL OSI USA News –

July 23, 2025

MIL-Evening Report: ER Report: A Roundup of Significant Articles on EveningReport.nz for July 23, 2025

ER Report: Here is a summary of significant articles published on EveningReport.nz on July 23, 2025.

Hard labour conditions of online moderators directly affect how well the internet is policed – new study
Source: The Conversation (Au and NZ) – By Tania Chatterjee, Joint PhD Candidate at Indian Institute of Technology, Delhi, The University of Queensland Getty Images/GCShutter Big tech platforms often present content moderation as a seamless, tech‑driven system. But human labour, often outsourced to countries such as India and the Philippines, plays a pivotal role in

Ghosted by a friend? 4 expert tips on how to handle the hurt
Source: The Conversation (Au and NZ) – By Megan Willis, Associate Professor, School of Behavioural and Health Sciences, Australian Catholic University martin-dm/Getty When we talk about “ghosting”, we usually think it relates to dating. But what happens when you’ve been ghosted by someone you’ve known for years – your childhood best friend, a parent, a

Labor’s new bill would cut HELP loans by 20%. But it also risks locking some graduates into a ‘debt treadmill’
Source: The Conversation (Au and NZ) – By Andrew Norton, Professor of Higher Education Policy, Monash University The Albanese government’s 20% cut to student debt is the first bill introduced to the new federal parliament. It is clever politics. In the government’s first term, the 3 million Australians with a student debt turned high indexation

ICJ climate crisis ruling: Will world’s top court back Pacific-led call to hold governments accountable?
By Jamie Tahana in The Hague for RNZ Pacific In 2019, a group of law students at the University of the South Pacific, frustrated at the slow pace with which the world’s governments were moving to address the climate crisis, had an idea — they would take the world’s governments to court. They arranged a

‘Maybe this is the last minutes you are living’: how the war is impacting young Ukrainians
Source: The Conversation (Au and NZ) – By Ashley Humphrey, Lecturer in Social Sciences, Monash University Now into its fourth year, the war that followed Russia’s invasion of Ukraine has taken a devastating toll. An estimated 60,000 to 100,0000 Ukrainian lives have been lost and more than 10 million citizens displaced, and entire cities have

Auckland is NZ’s ‘primate city’ but its potential remains caged in by poor planning and vision
Source: The Conversation (Au and NZ) – By Timothy Welch, Senior Lecturer in Urban Planning, University of Auckland, Waipapa Taumata Rau Getty Images The recent report comparing Auckland to nine international peer cities delivered an uncomfortable truth: our largest city is falling behind, hampered by car dependency, low-density housing and “weak economic performance”. The Deloitte

Climate disasters are pushing people into homelessness – but there’s a lot we can do about it
Source: The Conversation (Au and NZ) – By Timothy Heffernan, Lecturer in Anthropology, Australian National University Almost half of all Australian properties are at risk of bushfire, while 17,500 face risk of coastal erosion. By 2030, more than 3 million will face riverine flood risk. Meanwhile, housing demand continues to outpace supply. With climate-related disasters

UK bans Gaza protest group – could the same thing happen in Australia?
Source: The Conversation (Au and NZ) – By Shannon Bosch, Associate Professor (Law), Edith Cowan University More than 100 people were arrested in the United Kingdom on the weekend for supporting Palestine Action, a protest group that opposes Britain’s support of Israel. Palestine Action was recently proscribed as a terrorist organisation, placing it in the

The incredible impact of Ozzy Osbourne, from Black Sabbath to Ozzfest to 30 years of retirement tours
Source: The Conversation (Au and NZ) – By Lachlan Goold, Senior Lecturer in Contemporary Music, University of the Sunshine Coast Ozzy Osbourne photographed in London in 1991. Martyn Goodacre/Getty Images Ozzy Osbourne, the “prince of darkness” and godfather of heavy metal, has died aged 76, just weeks after he reunited with Black Sabbath bandmates for

Could the latest ‘interstellar comet’ be an alien probe? Why spotting cosmic visitors is harder than you think
Source: The Conversation (Au and NZ) – By Sara Webb, Lecturer, Centre for Astrophysics and Supercomputing, Swinburne University of Technology Comet 3I/ATLAS International Gemini Observatory/NOIRLab/NSF/AURA/K. Meech/Jen Miller/Mahdi Zamani, CC BY On July 1, astronomers spotted an unusual high-speed object zooming towards the Sun. Dubbed 3I/ATLAS, the surprising space traveller had one very special quality: its

Should Australia lower the voting age to 16 like the UK? We asked 5 experts
Source: The Conversation (Au and NZ) – By Pandanus Petter, Postdoctoral Research Fellow, School of Politics and International Relations, Australian National University The government in the UK is introducing legislation into parliament to lower the voting age to 16. If passed, the new age rules will be in place for the next general election, expected

Doctors shouldn’t be allowed to object to medical care if it harms their patients
Source: The Conversation (Au and NZ) – By Julian Savulescu, Visiting Professor in Biomedical Ethics, Murdoch Children’s Research Institute; Distinguished Visiting Professor in Law, University of Melbourne; Uehiro Chair in Practical Ethics, The University of Melbourne HRAUN/Getty A young woman needs an abortion and the reasons, while urgent, are not medical. A United States Navy

Ultra fast fashion could be taxed to oblivion in France. Could Australia follow suit?
Source: The Conversation (Au and NZ) – By Rowena Maguire, Professor of Law and Director of the Centre of Justice, Queensland University of Technology Ryan McVay/Getty For centuries, clothes were hard to produce and expensive. People wore them as long as possible. But manufacturing advances have steadily driven down the cost of production. These days,

Central bank independence and credibility matters. Here’s why
Source: The Conversation (Au and NZ) – By John Simon, Adjunct Fellow in Economics, Macquarie University Olga Kashubin/Shutterstock In the United States, President Donald Trump has been pressuring the chairman of the US Federal Reserve, Jerome Powell, to slash interest rates. This is partly to ease the interest payments on the ballooning US government debt.

Kneecap’s stance on Gaza extends a long history of the Irish supporting other oppressed peoples
Source: The Conversation (Au and NZ) – By Ciara Smart, PhD Graduand in Australasian Irish History, University of Tasmania Love them or hate them, there’s no doubt Irish hip-hop trio Kneecap are having a moment. Their music – delivered in a powerful fusion of English and Irish – is known for its gritty lyrics about

Do countries have a duty to prevent climate harm? The world’s highest court is about to answer this crucial question
Source: The Conversation (Au and NZ) – By Nathan Cooper, Associate Professor of Law, University of Waikato Getty Images The International Court of Justice (ICJ) will issue a highly anticipated advisory opinion overnight to clarify state obligations related to climate change. It will answer two urgent questions: what are the obligations of states under international

Gaza not a religious issue – it’s a massive violation of international law, say accord critics
Asia Pacific Report Groups that have declined to join the government-sponsored “harmony accord” signed yesterday by some Muslim and Jewish groups, say that the proposed new council is “misaligned” with its aims. The signed accord was presented at Government House in Auckland. About 70 people attended, including representatives of the New Zealand Jewish Council, His

Flying the flags for Palestine – NZ protesters take message to Devonport
The Devonport Flagstaff About 200 people marched in Devonport last Saturday in support of Palestine. Pro-Palestine flags and placards were draped on the band rotunda at Windsor Reserve as speakers, including Green Party co-leader Chlöe Swarbrick and the people power manager of Amnesty International Aotearoa New Zealand Margaret Taylor, a Devonport local, encouraged the crowd

View from The Hill: How much can Jim Chalmers get out of the economic reform roundtable?
Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra We’re now less than a month away from the start of the Albanese government’s “economic reform” (aka “productivity”) roundtable, but it has become quite hard to get a fix on exactly what this gathering will amount to. The guest list

Israeli settlers beat to death 2 Palestinians in latest lynchings
BEARING WITNESS: By Cole Martin in occupied West Bank Two young Palestinians were beaten to death on their land by Israeli settlers in the occupied West Bank on Friday. A funeral was held on Sunday for Sayfollah “Saif” Mussalet, 20, and Muhammad Shalabi, 23, who were brutally killed by a large group of settlers in

MIL OSI Analysis – EveningReport.nz –

July 23, 2025

MIL-OSI USA: THOMPSON RELEASES STATEMENT ON CONGRESSIONAL REPUBLICANS’ BILL TO RIP FUNDING FROM PUBLIC MEDIA, FOREIGN AID: “AN ATTACK ON PUBLIC SAFETY”

Source: United States House of Representatives – Congressman Mike Thompson Representing the 5th District of CALIFORNIA

Washington, D.C. – Today, Rep. Mike Thompson (CA-04) released the following statement after the passage of Congressional Republicans’ bill to take back federal funding from public media stations and foreign aid programs that was already approved by Congress and signed into law:

“Make no mistake: These clawbacks are an attack on public safety. Our public radio and TV stations, especially those in rural communities, are often the only trusted local news source. Publicly funded media stations are the ones covering our kids’ high school sports games, providing high-quality educational programming to our kids, and distributing essential public safety information during natural disasters. To slash this funding is to attack these important services.

“At the same time, Congressional Republicans are pulling funding from Ukraine and other allies. When our allies are unsafe, we are all unsafe. Cuts to foreign aid undermine our national security.

“Congressional Republicans’ claims that this is about saving money are laughable considering they just passed a bill that will add nearly $5 trillion to our national debt in order to give tax breaks to their billionaire donors who don’t need the help. They are pulling the rug out from under our allies and our local news stations. The American people will pay the price.”

MIL OSI USA News –

July 23, 2025

MIL-OSI USA: Scott Votes Against GOP’S FY26 Defense Appropriations Bill

Source: {United States House of Representatives – Congressman Bobby Scott (3rd District of Virginia)

Headline: Scott Votes Against GOP’S FY26 Defense Appropriations Bill

WASHINGTON, D.C. –Congressman Bobby Scott (VA-03) issued the following statement after voting against H.R. 4016, the Department of Defense Appropriations Act for FY 2026.

“The annual defense appropriations bill must be a strong investment in our servicemembers and our national security. There are some provisions I support in this defense appropriations bill such as investments in shipbuilding, including funding the Columbia-class and Virginia-class submarines and the Gerald R. Ford Class Nuclear Aircraft Carrier program. The bill also includes an important amendment to prevent the closure of the United States Army Transportation Museum at Fort Eustis.

“However, I ultimately cannot support the bill in its current form because the Republicans included language directing the Department of Defense to make harmful cuts in service of Elon Musk’s DOGE agenda. This bill will cut over $2 billion for troop readiness and $409 million for health programs. The bill includes provisions that attack the civil rights and liberties of service members and military families, including eliminating any office of diversity, equity, or inclusion. The bill also restricts access to abortion for servicemembers and fails to include $300 million for the Ukraine Security Assistance Initiative to help Ukraine defend itself against Russia’s invasion.

“I am hopeful that as the bill moves to the Senate, the final enacted version of this legislation will ensure our servicemembers and their families are protected and will also include necessary investments to our national security.”

CLICK HERE for a fact sheet on the legislation.

# # #

MIL OSI USA News –

July 23, 2025

MIL-Evening Report: ‘Maybe this is the last minutes you are living’: how the war is impacting young Ukrainians

Source: The Conversation (Au and NZ) – By Ashley Humphrey, Lecturer in Social Sciences, Monash University

Now into its fourth year, the war that followed Russia’s invasion of Ukraine has taken a devastating toll.

An estimated 60,000 to 100,0000 Ukrainian lives have been lost and more than 10 million citizens displaced, and entire cities have been devastated.

Daily life in Ukraine is disrupted by frequent power outages, significant interruptions to school and work routines and the recurrent warnings of air raid sirens.

We sought to understand the war’s impact on young Ukrainians by interviewing those still in, and outside of Ukraine.

Stolen youth

Young adults (aged 18-35) tend to be in a transitional phase of life, working towards establishing a career, starting a family and making future plans.

For many young Ukrainians, these developmental processes have been severely impeded during the war.

Our work provides insights into how young Ukrainians have navigated the severe intrusion to their development, as well as how they have coped psychologically during this time.

Our research drew on in-depth interviews with young Ukrainians who had lived in Ukraine for either the entirety or part of the war.

Conducted both in person in Ukraine as well as online, these interviews looked specifically at how the ongoing war has affected young people’s employment or study situation, their aspirations for the future and mental health, while also seeking to understand what support they need.

Responses from the participants varied.

Those who were working were now exclusively engaged in work centred on assisting the war effort, including in some cases having joined the armed forces.

Those who were studying had shifted to online mediums. The COVID pandemic ensured online learning platforms were largely already in place, allowing some to continue their studies from locations outside of Ukraine.

While perhaps an alluring prospect to some, this flexibility while studying was also accompanied by chaos and disorientation, with short-term visas forcing young Ukrainians to move from one country to another.

As one student explained:

We went to Ukraine for two weeks and then we moved to Georgia for three months. Now we’re in Thailand for one month, and now we’re going to be in Australia for two or three months. Then we’re probably going to go to Japan for a year maybe.

Local residents walk past buildings damaged as a result of a missile strike in Odesa.
OLEKSANDR GIMANOV/AFP via Getty Images

Depression, stress and surprising optimisim

Despite enduring the horrors of the war, the participants generally spoke of their futures with admirable optimism.

Remarkably, many commented on the way the war had redefined their goals toward helping their country in some way. One respondent told us:

When you are starting a new project, when you are applying for a job, you are having a constant filter: how does this affect Ukraine? Am I helping Ukraine? Am I helping Ukraine enough? What else can I do?’

Another shared:

I know we are fighting for our future. And I want to be a part of Ukraine and be a part of its reconstruction. Because I am like this bright future – I am the youth that will be reconstructing Ukraine because of their knowledge and money and everything else.

Unsurprisingly, some were also apathetic or dismissive of their futures, commenting on broken dreams and stating it was not a time for making future plans. They felt let down by the United Nations and the “international global order”.

Participants commented on the ways the war has affected their mental health.

Symptoms of PTSD, elevated stress, depression, constant anxiety as well as existential dread were raised, with one young Ukrainian telling us:

Every time when I hear alerts […] you’re thinking, maybe this is the last minutes you are living because the bomb can strike your flat.

The fear of loud noises, the harrowing plight of their country and the associated stress were emergent themes.

Yet, some indicated they had become resilient to this stress:

I think I became quite resistant to the stress as well, because I think I faced the scariest moments of my life, where I can die, and I understand that when you cannot control the situation and what’s going on, I cannot control whether a missile is going to be in my house.

This notion of resilience was both surprising and inspiring and this finding corroborated with past studies on war-affected Ukrainians.

As one participant explained:

If there was no war, I wouldn’t be who I am right now. It has really changed me. It has given me strength, this optimistic outlook.

A need for greater support

There is much to learn from these inspiring young people. But more pressingly, they need help.

As the relentless shelling of Ukrainian cities continues, the participants call for greater access to mental health and counselling services, ongoing investment in online learning tools and job opportunities and basic resources to support their wellbeing.

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

– ref. ‘Maybe this is the last minutes you are living’: how the war is impacting young Ukrainians – https://theconversation.com/maybe-this-is-the-last-minutes-you-are-living-how-the-war-is-impacting-young-ukrainians-260800

MIL OSI Analysis – EveningReport.nz –

July 23, 2025

MIL-OSI USA: July 22nd, 2025 Heinrich Votes Against Republicans’ Legislation to Defund Public Broadcasting, Harm New Mexicans’ Safety

US Senate News:

Source: United States Senator for New Mexico Martin Heinrich
WASHINGTON — U.S. Senator Martin Heinrich (D-N.M.) stood firm for New Mexico families by voting against Senate Republicans’ rescissions package that cuts funding to local public radio and TV stations, which rural communities and Tribes rely on as their primary source of information during life-or-death emergencies like wildfires, flash floods, and other catastrophic natural disasters.
“First, Republicans pushed through the largest Medicaid cut in American history. Now, they’ve slashed the only lifeline rural communities and Tribes rely on during life-or-death emergencies like wildfires and flash floods. Republicans’ cuts to local public radio and TV stations are reckless, dangerous, and put New Mexicans directly in harm’s way. All of this to bankroll massive tax giveaways for Trump’s billionaire donors,” said Heinrich, a member of the Senate Appropriations Committee.
Below are the New Mexico radio and TV stations whose federal funding is now at risk thanks to Republicans’ rescissions bill:
Radio
KSHI-FM, Zuni
KGLP-FM, Gallup
KABR-FM, Alamo
KSJE-FM, Farmington
KENW-FM, Portales
KCIE-FM, Dulce
KTDB, Pine Hill
KSFR-FM, Santa Fe
KANW-FM, Albuquerque
KHFM-FM (Albuquerque)
KUNM-FM (Albuquerque)
KRWG-FM, Las Cruces
TV
KENW-TV, Portales
New Mexico PBS KNME-TV (Albuquerque)
KRWG-TV (Las Cruces)
During the Reconciliation votes, Senate Republicans blocked Heinrich’s efforts to:
Protect Public Radio and TV
Prohibit defunding public radio and television stations that primarily serve rural and Tribal communities.
Prohibit defunding the Corporation for Public Broadcasting (CPB).
Protect public radio and television stations that are partners in the Emergency Alert System.
Protect access to children’s education programming through public television.
Promote American Values and Counter the People’s Republica of China (PRC) and Russia Influence Globally
Prevent cuts to funding that counters malign-PRC and Russian influence globally, including to counter Russian aggression in Ukraine.
Ensure the United States can maintain our long tradition of providing life-saving aid, including food and medicine.
Maintain the United States’s position as a global leader in humanitarian assistance.
Combat child marriages and feed children around the world.
Protect funding for child health, global health security, and to treat and prevent tuberculosis, malaria, and other diseases
Protect funding for international organizations and life-saving programs, including UNICEF other large-scale humanitarian and hunger prevention programs.

MIL OSI USA News –

July 23, 2025

MIL-OSI United Nations: Noting Almost 3 Billion People Lack Safe Place to Live, Deputy Secretary-General Urges Investment in Adequate Housing as Both Development, Peace Infrastructure

Source: United Nations General Assembly and Security Council

Following are UN Deputy Secretary-General Amina Mohammed’s remarks, as prepared for delivery, at the joint Economic and Social Council and the United Nations Human Settlements Programme (UN-Habitat) high-level dialogue on adequate housing, today:

It is a privilege to join you today for this important dialogue. I thank the President of the Economic and Social Council and UN-Habitat for convening us at such a critical moment.

Let me begin with a simple question: What did it take for us to be here today? We woke up somewhere safe. We had an address where documents could reach us, where our families knew to find us. We had a place to eat a meal, charge our phones and prepare for this day. For almost 3 billion people on our planet, none of that is guaranteed.

This is why today’s dialogue — at this critical moment during the High-Level Political Forum — matters so urgently. Housing is not simply about a roof over one’s head. It is a fundamental human right and the foundation upon which peace itself rests. Sustainable development and sustainable peace are inseparable.

Today, in an increasingly urbanized world, almost 3 billion people still live in inadequate conditions, in informal settlements, overcrowded housing or with no shelter at all. Among them are more than 120 million refugees and internally displaced persons — families torn from their homes by conflict, persecution and violence.

When homes are destroyed, when families are forced to flee, when communities are uprooted, we witness how housing becomes both a casualty and weapon of war. In Gaza, in Ukraine, in Sudan, in Yemen, in Myanmar and beyond, we have seen this time and again.

There is no safe housing in rubble, and without shelter, we lose the very basis of social cohesion and stability that makes peace possible. This crisis touches every Sustainable Development Goal we’ve committed to achieving by 2030.

We often say that home is where the heart is. Our work on housing sits at the very heart of the Sustainable Development Goals, and when we secure adequate housing for all, we nurture the conditions where every other goal can flourish.

We know that when people have access to safe, adequate, and affordable housing, children perform better in school. Workers are more productive. Health outcomes improve dramatically. Decent work becomes accessible. Communities become more resilient to the forces that fuel conflict and division. And while adequate housing cannot eliminate gender-based violence within the home, it reduces women and girls’ exposure to violence in public spaces.

So, the reality is that the ambition of the 2030 Agenda to leave no one behind begins with something as fundamental as a safe place to call home. By 2030, 60 per cent of the world’s population will live in cities, rising to nearly 70 per cent by 2050.

We have the tools and the commitment to grow cities, not slums, guided by the New Urban Agenda’s call for planned, inclusive urbanization that ensures housing, services and dignity for all. Success or failure to deliver on our commitments will depend on our ability to act urgently and work together.

At the Financing for Development Forum, Member States rightly called for bold reforms and investments to strengthen the social contract. That must include housing, not as a stand-alone project, but as a driver of inclusive development.

The Pact for the Future reaffirmed the 2030 Agenda and gave us a mandate to make multilateralism deliver in the lives of people, in the neighbourhoods where they live. It also gave us a mandate to prevent conflict and sustain peace — and housing sits at the intersection of both.

Later this year, the Second World Social Summit offers us an opportunity to reaffirm that housing is critical for social protection, decent work, access to services, and essential to building a just and cohesive society. It is also an opportunity to recognize housing as a pillar of conflict prevention and peacebuilding.

As Chair of the UN Sustainable Development Group, I see how country teams are working every day with governments, civil society and local and regional governments to advance these goals.

But we need to do more. Concretely, that means aligning political commitment and financing with the urgency and scale of the challenge. It means investing in adequate housing, not just as development infrastructure, but peace infrastructure.

We also need to bring to the centre those who are too often pushed to the margins: women, young people, older persons, persons with disabilities, Indigenous Peoples, displaced populations and people living in homelessness.

Their voices and experiences must inform the policies and solutions because they know what works, what’s missing, and they can inform the solutions we need to scale. They also know intimately the connections between displacement, insecurity and conflict. Their involvement is the best measure of our commitment to equity, dignity and human rights.

The first place where opportunity begins or where it is denied is not an office building or a school – it’s a home. Together, let’s deliver not only shelter, but lasting solutions that offer security and a path to prosperity. Not only four walls and a roof, but the opportunity to live in dignity.

MIL OSI United Nations News –

July 23, 2025

MIL-OSI United Nations: ‘Perfect storm’ of global crises drove years of food price surges: FAO

Source: United Nations 2

The report, to be released later this month, reveals how between 2020 and 2024, the world experienced a dramatic increase in food prices driven by a combination of COVID-19 inflation, the war in Ukraine restricting movements on food and commodities, and increasing climate shocks.

“The episodes described in this publication bring up what we call a perfect storm,” said Mr. Torero Cullen.

Máximo Torero Cullen speaks to journalists at the UN HQs via video link.

First, he explained that during the COVID-19 pandemic, governments launched fiscal stimulus and relief packages, which increased demand and, thus, global inflation.

Russia’s full-scale invasion of Ukraine compounded this crisis. Before the war began in 2022, Ukraine was a key exporter of wheat, sunflower oil and fertilisers. The war not only restricted these exports but disrupted trade routes and pushed up fuel and input costs, which amplified inflation across the world.

Additionally, increasingly frequent and intense climate shocks in major producing regions – such as droughts, floods and heat waves – further aggravated food inflation.

Worldwide impacts

Only in 2024 did prices return to pre-COVID levels, meaning that households struggled for multiple years to afford food, with major consequences.

As real wages fell while food prices increased, household purchasing power was eroded. Households responded by buying cheaper and less nutritious food, reducing meal frequency, and often prioritising meals for certain family members and reducing intake for women and children.

Mr. Torero Cullen also explained that an increase in food prices directly correlates to an increase in moderate and severe food insecurity. The impacts of this were particularly harsh in Africa and Western Asia, where food imports, dependence and currency depreciation made food even more expensive.

Moreover, as food prices increased, nutrition outcomes among children under five worsened. The SOFI report illustrated that a 10 per cent food price increase led to a 2.7 to 6.1 per cent increase in moderate to severe wasting, which has long-lasting effects on child development and public health systems.

Notably, these grave impacts were uneven, mostly affecting low-income and African countries – many of which are still seeing worsening figures. During the peak of the crisis in January 2023, some low-income countries experienced food price inflation of up to 30 per cent, compared to 13.6 per cent globally.

Policy recommendations

Mr. Torero Cullen finished his briefing by outlining the policy prescriptions detailed in the SOFI report.

He first underscored targeted fiscal support. “Social protection measures are the most effective response to food price spikes,” he explained. “This will protect vulnerable populations without creating long-term fiscal risk or market distortions.”

He also highlighted avoiding trade disruptions, coordinating monetary and fiscal policies, improving market transparency, and institutional preparedness as essential components for avoiding future crises.

“This SOFI underscores that inflation can undermine progress. It underlines our vulnerabilities, and it also brings the importance of strengthening resilience, inclusiveness and transparency to be able to avoid and minimize the risk of these problems,” he concluded.

MIL OSI United Nations News –

July 23, 2025

MIL-OSI: First Busey Corporation Announces 2025 Second Quarter Earnings

Source: GlobeNewswire (MIL-OSI)

LEAWOOD, Kan., July 22, 2025 (GLOBE NEWSWIRE) — First Busey Corporation (Nasdaq: BUSE) Announces 2025 Second Quarter Earnings.

Net Income	Diluted EPS	Net Interest Margin¹	ROAA¹	ROATCE¹
$47.4 million	$0.52	3.49%	1.00%	11.24%
$57.4 million (adj)²	$0.63 (adj)²	3.33% (adj)²	1.21% (adj)²	13.61% (adj)²

MESSAGE FROM OUR CHAIRMAN & CEO

This quarter’s bank merger and data conversion represents a significant milestone for our organization, as we officially welcome CrossFirst Bank customers to Busey Bank. We are proud to offer a premier, full-service banking experience for both consumer and commercial clients, with 78 locations spanning 10 states. Our comprehensive services also include a robust wealth management platform and cutting-edge payment technology solutions through FirsTech, Inc. This transformational partnership allows us to enhance Busey’s rich 157-year legacy of service excellence, further advancing our organization for the benefit of all our Pillars—associates, customers, communities, and shareholders.

Van A. Dukeman
Chairman and Chief Executive Officer

FINANCIAL RESULTS

CONDENSED CONSOLIDATED STATEMENTS OF INCOME *(unaudited)*

	Three Months Ended									Six Months Ended
(dollars in thousands, except per share amounts)	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Total interest income	$	247,446		$	166,815		$	131,939		$	414,261		$	257,759
Total interest expense		94,263			63,084			49,407			157,347			99,373
Net interest income		153,183			103,731			82,532			256,914			158,386
Provision for credit losses¹		5,700			45,593			1,908			51,293			6,268
Net interest income after provision for credit losses¹		147,483			58,138			80,624			205,621			152,118
Total noninterest income		44,863			21,223			33,703			66,086			68,616
Total noninterest expense¹		127,833			112,030			75,906			239,863			147,353
Income (loss) before income taxes		64,513			(32,669	)		38,421			31,844			73,381
Income taxes		17,109			(2,679	)		11,064			14,430			19,799
Net income (loss)		47,404			(29,990	)		27,357			17,414			53,582
Dividends on preferred stock		155			—			—			155			—
Net income (loss) available to common stockholders	$	47,249		$	(29,990	)	$	27,357		$	17,259		$	53,582

Basic earnings (loss) per common share	$	0.53		$	(0.44	)	$	0.48		$	0.22		$	0.95
Diluted earnings (loss) per common share	$	0.52		$	(0.44	)	$	0.47		$	0.22		$	0.94
Effective income tax rate		26.52	%		8.20	%		28.80	%		45.31	%		26.98	%

___________________________________________

Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense.

Following the acquisition of CrossFirst Bankshares, Inc. (“CrossFirst”) and its subsidiary CrossFirst Bank, by First Busey Corporation, the holding company for Busey Bank, in the first quarter of 2025, CrossFirst Bank was merged with and into Busey Bank (the “Bank Merger”) on June 20, 2025. At the time of the Bank Merger, CrossFirst Bank banking centers became banking centers of Busey Bank. Throughout this document, we refer to First Busey Corporation, together with its consolidated subsidiaries, as “Busey,” the “Company,” “we,” “us,” or “our.”

Busey’s net income for the second quarter of 2025 was $47.4 million, or $0.52 per diluted common share, compared to a net loss of $30.0 million, or $0.44 per diluted common share, for the first quarter of 2025, and net income of $27.4 million, or $0.47 per diluted common share, for the second quarter of 2024. Annualized return on average assets and annualized return on average tangible common equity² were 1.00% and 11.24%, respectively, for the second quarter of 2025. The second quarter of 2025 represented the first full quarter in which the CrossFirst acquisition contributed to Busey’s financial results.

Busey views certain non-operating items, including acquisition-related expenses, restructuring charges, and nonrecurring strategic events, as adjustments to net income reported under U.S. generally accepted accounting principles (“GAAP”). We also adjust for net securities gains and losses to align with industry and research analyst reporting. The objective of our presentation of adjusted earnings and adjusted earnings metrics is to allow investors and analysts to more clearly identify quarterly trends in core earnings performance. Non-operating pre-tax adjustments for acquisition and restructuring expenses² in the second quarter of 2025 were $16.6 million, with an additional $4.0 million adjustment to the initial provision for unfunded commitments resulting from the adoption of a new Current Expected Credit Losses (“CECL”) model. Further, net securities gains were $6.0 million, almost entirely related to unrealized gains on Busey’s approximately 3% equity ownership of a financial institution that was the target of an announced acquisition at a significant market premium. For more information and a reconciliation of these non-GAAP measures (which are identified with the End Note labeled as 2) in tabular form, see “Non-GAAP Financial Information” beginning on page 13.

Adjusted net income,² which excludes the impact of non-GAAP adjustments, was $57.4 million, or $0.63 per diluted common share, for the second quarter of 2025, compared to $39.9 million, or $0.57 per diluted common share, for the first quarter of 2025 and $30.5 million, or $0.53 per diluted common share, for the second quarter of 2024. Annualized adjusted return on average assets² and annualized adjusted return on average tangible common equity² were 1.21% and 13.61%, respectively, for the second quarter of 2025.

Pre-Provision Net Revenue²

Pre-provision net revenue² was $64.2 million for the second quarter of 2025, compared to $28.7 million for the first quarter of 2025 and $40.7 million for the second quarter of 2024. Pre-provision net revenue to average assets² was 1.35% for the second quarter of 2025, compared to 0.78% for the first quarter of 2025, and 1.35% for the second quarter of 2024.

Adjusted pre-provision net revenue² was $80.8 million for the second quarter of 2025, compared to $54.7 million for the first quarter of 2025 and $42.6 million for the second quarter of 2024. Adjusted pre-provision net revenue to average assets² was 1.70% for the second quarter of 2025, compared to 1.50% for the first quarter of 2025 and 1.42% for the second quarter of 2024.

Net Interest Income and Net Interest Margin²

Net interest income was $153.2 million in the second quarter of 2025, compared to $103.7 million in the first quarter of 2025 and $82.5 million in the second quarter of 2024.

Net interest margin² was 3.49% for the second quarter of 2025, compared to 3.16% for the first quarter of 2025 and 3.03% for the second quarter of 2024. Excluding purchase accounting accretion, adjusted net interest margin² was 3.33% for the second quarter of 2025, compared to 3.08% in the first quarter of 2025 and 3.00% in the second quarter of 2024.

Components of the 33 basis point increase in net interest margin² during the second quarter of 2025, which includes a full quarter of assets assumed in the CrossFirst acquisition, were as follows:

Increased loan portfolio and held for sale loan yields contributed +54 basis points
Increased purchase accounting accretion contributed +8 basis points
Securities repositioning executed in March contributed +4 basis points
Decreased borrowing expense contributed +4 basis points, of which +2 basis points were related to the redemption of subordinated debt in June
Increased non-maturity deposit funding costs contributed -25 basis points
Decreased cash and securities portfolio yield contributed -12 basis points

Based on our most recent Asset Liability Management Committee (“ALCO”) model, a +100 basis point parallel rate shock is expected to increase net interest income by 2.8% over the subsequent twelve-month period. Busey continues to evaluate and execute off-balance sheet hedging and balance sheet repositioning strategies as well as embedding rate protection in our asset originations to provide stabilization to net interest income in lower rate environments. Time deposit and savings specials have continued to stabilize the funding base, and we had excess earning cash during the second quarter of 2025. Brokered deposit balances were reduced by $368.6 million during the second quarter of 2025 and at June 30, 2025, the Bank had $353.6 million, or 2.2% of total deposits, of remaining brokered funding. Total deposit cost of funds increased, as expected, from 1.91% during the first quarter of 2025 to 2.21% during the second quarter of 2025. Deposit cost of funds increased due to a full quarter of the higher mix of acquired CrossFirst indexed/managed rate customer products and brokered deposits. Busey will continue to deploy excess cash to pay down non-core and non-relationship high cost funding, which we anticipate will compress the asset base in the short term while helping to reduce the Bank’s overall funding cost. We expect the deposit beta will lessen during the year and is expected to normalize in a range between 45% and 50% of the upper limit of the federal funds target range.

Noninterest Income

	Three Months Ended								Six Months Ended
(dollars in thousands)	June 30, 2025		March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
NONINTEREST INCOME
Wealth management fees	$	16,777	$	17,364		$	15,917		$	34,141		$	31,466
Payment technology solutions		4,956		5,073			5,915			10,029			11,624
Treasury management services		4,981		3,017			2,145			7,998			4,046
Card services and ATM fees		4,880		3,709			3,430			8,589			6,390
Other service charges on deposit accounts		1,513		1,533			2,321			3,046			4,669
Mortgage revenue		776		329			478			1,105			1,224
Income on bank owned life insurance		1,745		1,446			1,442			3,191			2,861
Realized net gains (losses) on the sale of mortgage servicing rights		—		—			277			—			7,742
Net securities gains (losses)		5,997		(15,768	)		(353	)		(9,771	)		(6,728	)
Other noninterest income		3,238		4,520			2,131			7,758			5,322
Total noninterest income	$	44,863	$	21,223		$	33,703		$	66,086		$	68,616

Total noninterest income increased by 111.4% compared to the first quarter of 2025 and increased by 33.1% compared to the second quarter of 2024, primarily due to net securities gains and losses, as well as the benefit of a full quarter of income from the CrossFirst acquisition.

Excluding the impact of net securities gains and losses and the gains on the sale of mortgage servicing rights, adjusted noninterest income² increased by 5.1% to $38.9 million, or 20.2% of operating revenue², during the second quarter of 2025, compared to $37.0 million, or 26.3% of operating revenue², for the first quarter of 2025. Compared to the second quarter of 2024, adjusted noninterest income² increased by 15.1% from $33.8 million, or 29.0% of operating revenue.²

Our fee-based businesses continue to add revenue diversification. Wealth management fees, wealth management referral fees included in other noninterest income, and payment technology solutions contributed 56.4% of adjusted noninterest income² for the second quarter of 2025.

Noteworthy components of noninterest income are as follows:

Wealth management fees declined by 3.4% compared to the first quarter of 2025. The decrease in the second quarter of 2025 was primarily related to seasonal fees, with a decrease in farm management fees, partially offset by higher tax preparation fees. Compared to the second quarter of 2024 wealth management fees increased by 5.4%. Busey’s Wealth Management division ended the second quarter of 2025 with $14.10 billion in assets under care, compared to $13.68 billion at the end of the first quarter of 2025 and $13.02 billion at the end of the second quarter of 2024. Our portfolio management team continues to focus on long-term returns and managing risk in the face of volatile markets and has outperformed its blended benchmark³ over the last three and five years.
Payment technology solutions includes income from electronic payments, merchant processing, and lockbox. Revenue in this category declined by 2.3% compared the first quarter of 2025 and declined by 16.2% compared to the second quarter of 2024, primarily due to decreases in income from electronic payments.
Treasury management services consist primarily of business analysis charges and wire transfer fees on commercial accounts. Income from treasury management services increased by 65.1% compared to the first quarter of 2025 and increased by 132.2% compared to the second quarter of 2024 due to the addition of CrossFirst commercial services.
Card services and ATM fees, which include both commercial and consumer accounts, increased by 31.6% compared to the first quarter of 2025 and increased by 42.3% compared to the second quarter of 2024 primarily due to addition of CrossFirst corporate card services.
Other service charges on deposit accounts declined by 1.3% compared to the first quarter of 2025 and declined by 34.8% compared to the second quarter of 2024. Declines are largely related to lower non-sufficient fund charges.
Other noninterest income decreased by 28.4% compared to the first quarter of 2025, primarily due to declines in gains on commercial loan sales, loss on sales of other real estate owned and a related reduction in income from the sold property, and decreases in venture capital investments. Compared to the second quarter of 2024, other noninterest income increased by 51.9%, primarily due to increases in venture capital investments, commercial loan servicing income, and other loan fee income.

Operating Efficiency

	Three Months Ended						Six Months Ended
(dollars in thousands)	June 30, 2025		March 31, 2025		June 30, 2024		June 30, 2025		June 30, 2024
NONINTEREST EXPENSE
Salaries, wages, and employee benefits	$	78,360	$	67,563	$	43,478	$	145,923	$	85,568
Data processing		14,021		9,575		7,100		23,596		13,650
Net occupancy expense of premises		7,832		5,799		4,590		13,631		9,310
Furniture and equipment expenses		2,409		1,744		1,695		4,153		3,508
Professional fees		2,874		9,511		2,495		12,385		4,748
Amortization of intangible assets		4,592		3,083		2,629		7,675		5,038
Interchange expense		1,297		1,343		1,733		2,640		3,344
FDIC insurance		2,424		2,167		1,460		4,591		2,860
Other noninterest expense¹		14,024		11,245		10,726		25,269		19,327
Total noninterest expense¹	$	127,833	$	112,030	$	75,906	$	239,863	$	147,353

___________________________________________

Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within other noninterest expense or total noninterest expense.

Total noninterest expense increased by 14.1% compared to the first quarter of 2025 and increased by 68.4% compared to the second quarter of 2024. Growth in noninterest expense was primarily attributable to nonrecurring acquisition expenses related to the CrossFirst acquisition, added costs for operating expenses for two banks during the majority of the second quarter, until the banks were merged on June 20, 2025, and increased expense associated with the larger organization and branch network. Annual pre-tax expense synergy estimates resulting from the CrossFirst acquisition remain on track at $25.0 million, and we expect 50% of the identified synergies to be realized in 2025 and 100% in 2026.

Adjusted noninterest expense,² which excludes acquisition and restructuring expenses and amortization of intangible assets, was $106.6 million in the second quarter of 2025, a 28.6% increase compared to $82.9 million in the first quarter of 2025 and a 50.1% increase compared to $71.1 million in the second quarter of 2024.

Noteworthy components of noninterest expense are as follows:

Salaries, wages, and employee benefits expenses increased by $10.8 million compared to the first quarter of 2025, with acquisition and restructuring expenses declining by $4.3 million. In connection with the CrossFirst acquisition in March and the addition of 16 banking centers, Busey’s workforce expanded, which resulted in only one month of associated expenses during the first quarter of 2025 in contrast to a full quarter of associated expenses reflected in the Company’s results for the second quarter of 2025. Compared to the second quarter of 2024, salaries, wages, and employee benefits expenses increased by $34.9 million, of which $10.4 million was attributable to increases in acquisition and restructuring expenses. Including associates added in connection with the CrossFirst acquisition, Busey has added 430 FTEs over the past year.
Data processing expense increased by $4.4 million compared to the first quarter of 2025 and by $6.9 million compared to the second quarter of 2024, of which $1.7 million and $3.6 million, respectively, was attributable to increases in acquisition and restructuring expenses. Busey has continued to make investments in technology enhancements and has also experienced inflation-driven price increases.
Professional fees declined by $6.6 million compared to the first quarter of 2025, which was primarily driven by a $7.0 million decrease in acquisition and restructuring expenses. Compared to the second quarter of 2024, professional fees increased by $0.4 million, primarily due to increased audit and accounting fees and legal fees, partially offset by $0.1 million declines in acquisition and restructuring expenses.
Amortization of intangible assets increased by $1.5 million compared to the first quarter of 2025, and by $2.0 million compared to the second quarter of 2024. The CrossFirst acquisition added an estimated $81.8 million of finite-lived intangible assets with amortization of $2.4 million and $3.1 million during the second quarter of 2025 and the first six months of 2025, respectively. Busey uses an accelerated amortization methodology.
Other noninterest expense increased by $2.8 million compared to the first quarter of 2025, and increased by $3.3 million compared to the second quarter of 2024. Items contributing to the increases included marketing, business development, supplies, and onboarding costs as well as increases in acquisition and restructuring expenses of $0.2 million compared to the first quarter of 2025 and $0.5 million compared to the second quarter of 2024.

Busey’s efficiency ratio² was 63.9% for the second quarter of 2025, compared to 77.1% for the first quarter of 2025 and 62.6% for the second quarter of 2024. Our adjusted efficiency² ratio was 55.3% for the second quarter of 2025, compared to 58.7% for the first quarter of 2025, and 60.9% for the second quarter of 2024.

Busey’s annualized ratio of adjusted noninterest expense to average assets was 2.24% for the second quarter of 2025, compared to 2.27% for the first quarter of 2025 and 2.36% for the second quarter of 2024. As our business grows, Busey remains focused on prudently managing our expense base and operating efficiency.

BALANCE SHEET STRENGTH

CONDENSED CONSOLIDATED BALANCE SHEETS *(unaudited)*

	As of
(dollars in thousands, except per share amounts)	June 30, 2025			March 31, 2025			June 30, 2024
ASSETS
Cash and cash equivalents	$	752,352		$	1,200,292		$	285,269
Debt securities available for sale		2,217,788			2,273,874			1,829,896
Debt securities held to maturity		802,965			815,402			851,261
Equity securities		16,171			10,828			9,618
Loans held for sale		10,497			7,270			11,286
Portfolio loans		13,808,619			13,868,357			7,998,912
Allowance for credit losses		(183,334	)		(195,210	)		(85,226	)
Restricted bank stock		77,112			53,518			6,884
Premises and equipment, net		181,394			182,003			121,647
Right of use assets		38,065			40,594			11,137
Goodwill and other intangible assets, net		488,181			496,118			370,580
Other assets		708,930			711,206			560,152
Total assets	$	18,918,740		$	19,464,252		$	11,971,416

LIABILITIES & STOCKHOLDERS’ EQUITY
Liabilities
Deposits:
Noninterest-bearing deposits	$	3,590,363		$	3,693,070		$	2,832,776
Interest-bearing checking, savings, and money market deposits		9,578,953			9,675,324			5,619,470
Time deposits		2,632,456			3,091,076			1,523,889
Total deposits		15,801,772			16,459,470			9,976,135
Securities sold under agreements to repurchase		158,030			137,340			140,283
Short-term borrowings		—			11,209			—
Long-term debt		189,726			313,535			227,245
Junior subordinated debt owed to unconsolidated trusts		77,187			77,117			74,693
Lease liabilities		39,235			41,111			11,469
Other liabilities		240,244			244,864			207,781
Total liabilities		16,506,194			17,284,646			10,637,606

Stockholders’ equity
Retained earnings		273,799			249,484			261,820
Accumulated other comprehensive income (loss)		(155,311	)		(172,810	)		(220,326	)
Other stockholders’ equity¹		2,294,058			2,102,932			1,292,316
Total stockholders’ equity		2,412,546			2,179,606			1,333,810
Total liabilities & stockholders’ equity	$	18,918,740		$	19,464,252		$	11,971,416

___________________________________________

Net balance of preferred stock ($0.001 par value), common stock ($0.001 par value), additional paid-in capital, and treasury stock.

AVERAGE BALANCES *(unaudited)*

	Three Months Ended						Six Months Ended
(dollars in thousands)	June 30, 2025		March 31, 2025		June 30, 2024		June 30, 2025		June 30, 2024
ASSETS
Cash and cash equivalents	$	868,164	$	861,021	$	346,381	$	864,613	$	470,287
Investment securities		3,083,284		2,782,435		2,737,313		2,933,690		2,822,228
Loans held for sale		6,899		3,443		9,353		5,181		7,093
Portfolio loans		13,840,190		9,838,337		8,010,636		11,850,318		7,804,976
Interest-earning assets		17,700,356		13,363,594		11,000,785		15,543,955		11,003,344
Total assets		19,068,086		14,831,298		12,089,692		16,961,396		12,056,950

LIABILITIES & STOCKHOLDERS’ EQUITY
Noninterest-bearing deposits		3,542,617		3,036,127		2,816,293		3,290,770		2,762,439
Interest-bearing deposits		12,450,529		9,142,781		7,251,582		10,805,793		7,290,844
Total deposits		15,993,146		12,178,908		10,067,875		14,096,563		10,053,283
Federal funds purchased and securities sold under agreements to repurchase		141,978		144,838		144,370		143,400		161,514
Interest-bearing liabilities		12,985,015		9,627,841		7,725,832		11,315,702		7,778,744
Total liabilities		16,783,504		12,896,222		10,757,877		14,850,601		10,753,180
Stockholders’ equity – preferred		103,619		2,669		—		53,423		—
Stockholders’ equity – common		2,180,963		1,932,407		1,331,815		2,057,372		1,303,770
Tangible common equity¹		1,686,490		1,521,387		955,591		1,604,394		939,150

___________________________________________

See “Non-GAAP Financial Information” for reconciliation.

Busey’s financial strength is built on a long-term conservative operating approach. That focus has endured over time and will continue to guide us in the future.

Total assets were $18.92 billion as of June 30, 2025, compared to $19.46 billion as of March 31, 2025, and $11.97 billion as of June 30, 2024. Average interest-earning assets were $17.70 billion for the second quarter of 2025, compared to $13.36 billion for the first quarter of 2025, and $11.00 billion for the second quarter of 2024.

Portfolio Loans

We remain steadfast in our conservative approach to underwriting and our disciplined approach to pricing. Loan demand has been tempered with borrowers hesitant to invest because of lingering macroeconomic uncertainty. At the same time, our commercial real estate portfolio continues to season, resulting in payoffs as properties are completed, stabilized, and refinanced to permanent markets or sold. We expect continued pressure from paydowns within our commercial real estate portfolio through the remainder of 2025. Portfolio loans totaled $13.81 billion at June 30, 2025, compared to $13.87 billion at March 31, 2025, and $8.00 billion at June 30, 2024.

Average portfolio loans were $13.84 billion for the second quarter of 2025, compared to $9.84 billion for the first quarter of 2025 and $8.01 billion for the second quarter of 2024.

Asset Quality

Asset quality continues to be strong. Busey Bank maintains a well-diversified loan portfolio and, as a matter of policy and practice, limits concentration exposure in any particular loan segment. Following the Bank Merger in June, we are operating as one bank, with a singular credit policy, concentration limits, and monitoring that will continue to align with Busey Bank’s pillars of credit quality.

ASSET QUALITY *(unaudited)*

	As of
(dollars in thousands)	June 30, 2025			March 31, 2025			June 30, 2024
Total assets	$	18,918,740		$	19,464,252		$	11,971,416
Portfolio loans		13,808,619			13,868,357			7,998,912
Loans 30 – 89 days past due		42,188			18,554			23,463
Non-performing loans:
Non-accrual loans		53,614			48,647			8,393
Loans 90+ days past due and still accruing		941			6,077			712
Non-performing loans		54,555			54,724			9,105
Other non-performing assets		3,596			4,757			90
Non-performing assets		58,151			59,481			9,195
Substandard (excludes 90+ days past due)		117,580			131,078			86,579
Classified assets	$	175,731		$	190,559		$	95,774

Allowance for credit losses	$	183,334		$	195,210		$	85,226

RATIOS
Non-performing loans to portfolio loans		0.40	%		0.39	%		0.11	%
Non-performing assets to total assets		0.31	%		0.31	%		0.08	%
Non-performing assets to portfolio loans and other non-performing assets		0.42	%		0.43	%		0.11	%
Allowance for credit losses to portfolio loans		1.33	%		1.41	%		1.07	%
Coverage ratio of the allowance for credit losses to non-performing loans	3.36 x			3.57 x			9.36 x
Classified assets to Bank Tier 1 capital¹and reserves		7.70	%		8.40	%		6.40	%

___________________________________________

Capital amounts for the second quarter of 2025 are not yet finalized and are subject to change.

Loans 30-89 days past due increased by $23.6 million compared to March 31, 2025, and increased by $18.7 million compared to June 30, 2024. Increases are primarily due to two commercial credits, one of which—representing approximately $12.5 million—was brought current after the end of the second quarter.

Non-performing loans decreased by $0.2 million compared to March 31, 2025, and increased by $45.5 million compared to June 30, 2024, with the increase compared to the prior year due to loans purchased with credit deterioration (“PCD” loans) assumed in the CrossFirst acquisition. Non-performing loans were 0.40% of portfolio loans as of June 30, 2025, a 1 basis point increase from March 31, 2025, and a 29 basis point increase from June 30, 2024.

Non-performing assets decreased by $1.3 million compared to March 31, 2025, and increased by $49.0 million compared to June 30, 2024, with the increase compared to the prior year due to the PCD loans assumed in the CrossFirst acquisition. Non-performing assets represented 0.31% of total assets as of both June 30, 2025, and March 31, 2025, which is a 23 basis point increase from June 30, 2024.

Classified assets decreased by $14.8 million compared to March 31, 2025, and increased by $80.0 million compared to June 30, 2024, with the increase compared to the prior year due to the PCD loans assumed in the CrossFirst acquisition.

The allowance for credit losses was $183.3 million as of June 30, 2025, representing 1.33% of total portfolio loans outstanding, and providing coverage of 3.36 times our non-performing loans balance.

NET CHARGE-OFFS (RECOVERIES) AND PROVISION EXPENSE (RELEASE) *(unaudited)*

	Three Months Ended							Six Months Ended
(dollars in thousands)	June 30, 2025		March 31, 2025		June 30, 2024			June 30, 2025		June 30, 2024
Net charge-offs (recoveries)	$	12,882	$	31,429	$	9,856		$	44,311	$	15,072

Provision for loan losses¹	$	1,005	$	42,452	$	2,277		$	43,457	$	7,315
Provision for unfunded commitments²		4,695		3,141		(369	)		7,836		(1,047	)
Provision for credit losses³	$	5,700	$	45,593	$	1,908		$	51,293	$	6,268

___________________________________________

Amounts reported as provision for loan losses for periods ending prior to June 30, 2025, were previously reported as provision for credit losses. March 31, 2025, included $42.4 million to establish an initial allowance for credit losses for loans purchased without credit deterioration (“non-PCD” loans) following the close of the CrossFirst acquisition.
June 30, 2025, included an additional $4.0 million adjustment to the initial provision for unfunded commitments resulting from the adoption of a new CECL model. March 31, 2025, included $3.1 million to establish an initial allowance for unfunded commitments following the close of the CrossFirst acquisition.
Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses.

Net charge-offs decreased by $18.5 million when compared to the first quarter of 2025, and increased by $3.0 million when compared with the second quarter of 2024. Net charge-offs during the second quarter of 2025 primarily related to one legacy-Busey medical office credit. Net charge-offs during the first quarter of 2025 included $29.6 million related to PCD loans acquired from CrossFirst Bank, which were fully reserved at acquisition and did not require recording additional provision expense.

The $1.0 million provision for loan losses recorded in the second quarter of 2025 included a release of the PCD provision of $11.8 million due to PCD loan payoffs/paydowns and non-PCD provision expense of $12.8 million to support charge-offs, to adjust for the loan portfolio mix, and as a response to economic factors.

Deposits

Total deposits were $15.80 billion at June 30, 2025, compared to $16.46 billion at March 31, 2025, and $9.98 billion at June 30, 2024. Average deposits were $15.99 billion for the second quarter of 2025, compared to $12.18 billion for the first quarter of 2025 and $10.07 billion for the second quarter of 2024. The deliberate run-off of higher cost brokered deposits and listing service CD reductions accounted for $386.8 million of the quarter over quarter decrease as well as seasonal tax payments that put additional pressure on funding during the quarter.

Core deposits² accounted for 92.5% of total deposits as of June 30, 2025. The quality of our core deposit franchise is a critical value driver of our institution. We estimated that 33% of our deposits were uninsured and uncollateralized⁴ as of June 30, 2025, and we have sufficient on- and off-balance sheet liquidity to manage deposit fluctuations and the liquidity needs of our customers.

We have executed various deposit campaigns to attract term funding and savings accounts at a lower rate than our marginal cost of funds. New certificate of deposit production in the second quarter of 2025 had a weighted average term of 8.0 months at a rate of 3.74%, which was 80 basis points below our average marginal wholesale equivalent-term funding cost during the quarter.

Borrowings

On June 1, 2025, Busey redeemed the entire $125.0 million outstanding principal amount of its 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 (the “Subordinated Notes”). The aggregate principal amount of the Subordinated Notes, plus accrued and unpaid interest thereon up to, but excluding, June 1, 2025, was $128.3 million.

Liquidity

As of June 30, 2025, Busey’s available sources of on- and off-balance sheet liquidity⁵ totaled $7.95 billion. Furthermore, Busey’s balance sheet liquidity profile continues to be aided by the cash flows expected from Busey’s relatively short-duration securities portfolio. Those cash flows were approximately $123.1 million in the second quarter of 2025. Cash flows from maturing securities within our portfolio are expected to be approximately $181.0 million for the remainder of 2025, with a current book yield of 2.52%, and approximately $289.7 million for 2026, with a current book yield of 2.58%.

Capital Strength

The strength of our balance sheet is also reflected in our capital foundation. Although still impacted by the strategic deployment of capital for the CrossFirst acquisition, as well as by Busey’s active share repurchase program, our capital ratios remain strong, and as of June 30, 2025, our estimated regulatory capital ratios⁶ continued to provide a buffer of more than $870 million above levels required to be designated well-capitalized. Busey’s Common Equity Tier 1 ratio is estimated⁶ to be 12.22% at June 30, 2025, compared to 12.00% at March 31, 2025, and 13.20% at June 30, 2024. Our Total Capital to Risk Weighted Assets ratio is estimated⁶ to be 15.75% at June 30, 2025, compared to 14.88% at March 31, 2025, and 17.50% at June 30, 2024.

Busey’s tangible common equity² was $1.71 billion at June 30, 2025, compared to $1.68 billion at March 31, 2025, and $963.2 million at June 30, 2024. Tangible common equity² represented 9.27% of tangible assets at June 30, 2025, compared to 8.83% at March 31, 2025, and 8.30% at June 30, 2024.

Busey’s tangible book value per common share² was $19.18 at June 30, 2025, compared to $18.62 at March 31, 2025, and $16.97 at June 30, 2024, reflecting a 13.0% year-over-year increase.

Dividends

Busey’s strong capital levels, coupled with its earnings, have allowed the Company to provide a steady return to its stockholders through dividends. During the second quarter of 2025, Busey paid a dividend of $0.25 per share on its common stock. Busey has consistently paid dividends to its common stockholders since the bank holding company was organized in 1980. Additionally, during the second quarter of 2025, Busey paid a dividend of $20.00 per share on its Series A Non-cumulative Perpetual Preferred Stock, which was issued in connection with the CrossFirst acquisition.

Series B Preferred Stock Issuance

On May 20, 2025, Busey issued an aggregate of 8,600,000 depositary shares (the “Depositary Shares”), each representing a 1/40th interest in a share of Busey’s 8.25% Fixed-Rate Series B Non-Cumulative Perpetual Preferred Stock, $0.001 par value (the “Series B Preferred Stock”), with a liquidation preference of $1,000 per share of Series B Preferred Stock (equivalent to $25 per Depositary Share). Additional information about the Depositary Shares and Series B Preferred Stock issuance can be found in Busey’s 8-K filed with the SEC on May 20, 2025, and the related exhibits thereto.

Share Repurchases

During the second quarter of 2025, Busey’s board of directors authorized the purchase of up to 2,000,000 additional shares of the Company’s common stock under Busey’s stock repurchase plan. Busey purchased 1,012,000 shares of its common stock under the plan during the second quarter of 2025 at a weighted average price of $21.40 per share for a total of $21.7 million. As of June 30, 2025, Busey had 2,687,275 shares remaining available for repurchase under the plan.

SECOND QUARTER EARNINGS INVESTOR PRESENTATION

For additional information on Busey’s financial condition and operating results, please refer to our Q2 2025 Earnings Investor Presentation furnished via Form 8‑K on July 22, 2025, in connection with this earnings release.

CORPORATE PROFILE

As of June 30, 2025, First Busey Corporation (Nasdaq: BUSE) was a $18.92 billion financial holding company headquartered in Leawood, Kansas.

Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation headquartered in Champaign, Illinois, had total assets of $18.87 billion as of June 30, 2025. Busey Bank currently has 78 banking centers, with 21 in Central Illinois markets, 17 in suburban Chicago markets, 20 in the St. Louis Metropolitan Statistical Area, four in the Dallas-Fort Worth-Arlington Metropolitan Statistical Area, three in the Kansas City Metropolitan Statistical Area, three in Southwest Florida, one in Indianapolis, two in Oklahoma City, one in Tulsa, one in Wichita, one in Denver, one in Colorado Springs, one in Phoenix, one in Tucson, and one in New Mexico. More information about Busey Bank can be found at busey.com.

Through Busey’s Wealth Management division, the Company provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations. Assets under care totaled $14.10 billion as of June 30, 2025. More information about Busey’s Wealth Management services can be found at busey.com/wealth-management.

Busey Bank’s wholly-owned subsidiary, FirsTech, specializes in the evolving financial technology needs of small and medium-sized businesses, highly regulated enterprise industries, and financial institutions. FirsTech provides comprehensive and innovative payment technology solutions, including online, mobile, and voice-recognition bill payments; money and data movement; merchant services; direct debit services; lockbox remittance processing for payments made by mail; and walk-in payments at retail agents. Additionally, FirsTech simplifies client workflows through integrations enabling support with billing, reconciliation, bill reminders, and treasury services. More information about FirsTech can be found at firstechpayments.com.

For the fourth consecutive year, Busey was named among Forbes’ 2025’s America’s Best Banks. In 2025, Forbes also recognized Busey as a Best-in-State Bank, based on rankings of customer service, quality of financial advice, fee structures, ease of digital services, accessing help at branch locations and the degree of trust inspired. Busey was also named among the 2024 Best Banks to Work For by American Banker and the 2024 Best Places to Work in Money Management by Pensions and Investments. We are honored to be consistently recognized as an outstanding financial services organization with an engaged culture of integrity and commitment to community development.

NON-GAAP FINANCIAL INFORMATION

This earnings release contains certain financial information determined by methods other than GAAP. Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of Busey’s performance and in making business decisions, as well as for comparison to Busey’s peers. Busey believes the adjusted measures are useful for investors and management to understand the effects of certain non-core and non-recurring items and provide additional perspective on Busey’s performance over time.

The following tables present reconciliations between these non-GAAP measures and what management believes to be the most directly comparable GAAP financial measures.

These non-GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a substitute for operating results reported in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Tax effected numbers included in these non-GAAP disclosures are based on estimated statutory rates, estimated federal income tax rates, or effective tax rates, as noted with the tables below.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)

Pre-Provision Net Revenue and Related Measures

		Three Months Ended									Six Months Ended
(dollars in thousands)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net interest income (GAAP)		$	153,183		$	103,731		$	82,532		$	256,914		$	158,386
Total noninterest income (GAAP)			44,863			21,223			33,703			66,086			68,616
Net security (gains) losses (GAAP)			(5,997	)		15,768			353			9,771			6,728
Total noninterest expense (GAAP)¹			(127,833	)		(112,030	)		(75,906	)		(239,863	)		(147,353	)
Pre-provision net revenue (Non-GAAP)	[a]		64,216			28,692			40,682			92,908			86,377
Acquisition and restructuring expenses, excluding initial provision expenses			16,600			26,026			2,212			42,626			2,620
Realized net (gains) losses on the sale of mortgage service rights			—			—			(277	)		—			(7,742	)
Adjusted pre-provision net revenue (Non-GAAP)	[b]	$	80,816		$	54,718		$	42,617		$	135,534		$	81,255

Average total assets	[c]	$	19,068,086		$	14,831,298		$	12,089,692		$	16,961,396		$	12,056,950

Pre-provision net revenue to average total assets (Non-GAAP)²	[a÷c]		1.35	%		0.78	%		1.35	%		1.10	%		1.44	%
Adjusted pre-provision net revenue to average total assets (Non-GAAP)²	[b÷c]		1.70	%		1.50	%		1.42	%		1.61	%		1.36	%

___________________________________________

Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense.
Annualized measure.

Adjusted Net Income, Average Tangible Common Equity, and Related Ratios

		Three Months Ended									Six Months Ended
(dollars in thousands, except per share amounts)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net income (loss) (GAAP)	[a]	$	47,404		$	(29,990	)	$	27,357		$	17,414		$	53,582
Day 2 provision for credit losses¹			—			45,572			—			45,572			—
Adjustment of initial provision for unfunded commitments due to adoption of new model¹			4,030			—			—			4,030			—
Other acquisition expenses			16,600			26,026			2,212			42,626			2,497
Restructuring expenses			—			—			—			—			123
Net securities (gains) losses			(5,997	)		15,768			353			9,771			6,728
Realized net (gains) losses on the sale of mortgage servicing rights			—			—			(277	)		—			(7,742	)
Related tax (benefit) expense²			(4,971	)		(22,069	)		(572	)		(27,040	)		(402	)
Non-recurring deferred tax adjustment³			328			4,591			1,446			4,919			1,446
Adjusted net income (Non-GAAP)⁴	[b]		57,394			39,898			30,519			97,292			56,232
Preferred dividends	[c]		155			—			—			155			—
Adjusted net income available to common stockholders (Non-GAAP)	[d]	$	57,239		$	39,898		$	30,519		$	97,137		$	56,232

Weighted average number of common shares outstanding, diluted (GAAP)	[e]		90,883,711			68,517,647			57,853,231			80,251,577			57,129,865
Diluted earnings (loss) per common share (GAAP)	[(a-c)÷e]	$	0.52		$	(0.44	)	$	0.47		$	0.22		$	0.94

Weighted average number of common shares outstanding, diluted (Non-GAAP)⁵	[f]		90,883,711			69,502,717			57,853,231			80,251,577			57,129,865
Adjusted diluted earnings per common share (Non-GAAP)^5,6	[d÷f]	$	0.63		$	0.57		$	0.53		$	1.21		$	0.98

Average total assets	[g]	$	19,068,086		$	14,831,298		$	12,089,692		$	16,961,396		$	12,056,950
Return on average assets (Non-GAAP)⁶	[a÷g]		1.00	%	(0.82)%				0.91	%		0.21	%		0.89	%
Adjusted return on average assets (Non-GAAP)⁴^,⁶	[b÷g]		1.21	%		1.09	%		1.02	%		1.16	%		0.94	%

Average common equity		$	2,180,963		$	1,932,407		$	1,331,815		$	2,057,372		$	1,303,770
Average goodwill and other intangible assets, net			(494,473	)		(411,020	)		(376,224	)		(452,978	)		(364,620	)
Average tangible common equity (Non-GAAP)	[h]	$	1,686,490		$	1,521,387		$	955,591		$	1,604,394		$	939,150

Return on average tangible common equity (Non-GAAP)⁶	[(a-c)÷h]		11.24	%	(7.99)%				11.51	%		2.17	%		11.47	%
Adjusted return on average tangible common equity (Non-GAAP)⁴^,⁶	[d÷h]		13.61	%		10.64	%		12.85	%		12.21	%		12.04	%

___________________________________________

The Day 2 provision represents the initial provision for credit losses recorded in connection with the CrossFirst acquisition to establish an allowance on non-PCD loans and unfunded commitments and is reflected within the provision for credit losses line on the Statement of Income.
Tax benefits were calculated for the year-to-date periods using tax rates of 26.51% and 25.03% for the six months ended June 30, 2025 and 2024, respectively. Tax benefits for the quarterly periods were calculated as the year-to-date tax amounts less the tax reported for previous quarters during the year.
A deferred valuation tax adjustment in 2025 was recorded in connection with the CrossFirst acquisition and the expansion of Busey’s footprint into new states. Additionally, 2025 includes a write-off of deferred tax assets related to non-deductible acquisition-related expenses. A deferred tax valuation adjustment in 2024 resulted from a change to Busey’s Illinois apportionment rate due to recently enacted regulations. Deferred tax adjustments are reflected within the income taxes line on the Statement of Income.
Beginning in 2025, Busey revised its calculation of adjusted net income for all periods presented to include, as applicable, adjustments for net securities gains and losses, realized net gains and losses on the sale of mortgage servicing rights, and one-time deferred tax valuation adjustments. In 2024, these adjusting items were presented as further adjustments to adjusted net income.
Dilution includes shares that would have been dilutive if there had been net income during the period.
Annualized measure.

Tax-Equivalent Net Interest Income, Adjusted Net Interest Income, Net Interest Margin, and Adjusted Net Interest Margin

		Three Months Ended									Six Months Ended
(dollars in thousands)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net interest income (GAAP)		$	153,183		$	103,731		$	82,532		$	256,914		$	158,386
Tax-equivalent adjustment¹			791			537			402			1,328			851
Tax-equivalent net interest income (Non-GAAP)	[a]		153,974			104,268			82,934			258,242			159,237
Purchase accounting accretion related to business combinations			(7,119	)		(2,728	)		(812	)		(9,847	)		(1,016	)
Adjusted net interest income (Non-GAAP)	[b]	$	146,855		$	101,540		$	82,122		$	248,395		$	158,221

Average interest-earning assets (Non-GAAP)	[c]	$	17,700,356		$	13,363,594		$	11,000,785		$	15,543,955		$	11,003,344

Net interest margin (Non-GAAP)²	[a÷c]		3.49	%		3.16	%		3.03	%		3.35	%		2.91	%
Adjusted net interest margin (Non-GAAP)²	[b÷c]		3.33	%		3.08	%		3.00	%		3.22	%		2.89	%

___________________________________________

Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
Annualized measure.

Adjusted Noninterest Income, Revenue Measures, Adjusted Noninterest Expense, Efficiency Ratios, and Adjusted Noninterest Expense to Average Assets

		Three Months Ended									Six Months Ended
(dollars in thousands)		June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Net interest income (GAAP)	[a]	$	153,183		$	103,731		$	82,532		$	256,914		$	158,386
Tax-equivalent adjustment¹			791			537			402			1,328			851
Tax-equivalent net interest income (Non-GAAP)	[b]		153,974			104,268			82,934			258,242			159,237

Total noninterest income (GAAP)			44,863			21,223			33,703			66,086			68,616
Net security (gains) losses			(5,997	)		15,768			353			9,771			6,728
Noninterest income excluding net securities gains and losses (Non-GAAP)	[c]		38,866			36,991			34,056			75,857			75,344
Realized net (gains) losses on the sale of mortgage service rights			—			—			(277	)		—			(7,742	)
Adjusted noninterest income (Non-GAAP)	[d]	$	38,866		$	36,991		$	33,779		$	75,857		$	67,602

Tax-equivalent revenue (Non-GAAP)	[e = b+c]	$	192,840		$	141,259		$	116,990		$	334,099		$	234,581
Adjusted tax-equivalent revenue (Non-GAAP)	[f = b+d]		192,840			141,259			116,713			334,099			226,839
Operating revenue (Non-GAAP)	[g = a+d]		192,049			140,722			116,311			332,771			225,988

Adjusted noninterest income to operating revenue (Non-GAAP)	[d÷g]		20.24	%		26.29	%		29.04	%		22.80	%		29.91	%

Total noninterest expense (GAAP)²		$	127,833		$	112,030		$	75,906		$	239,863		$	147,353
Amortization of intangible assets			(4,592	)		(3,083	)		(2,629	)		(7,675	)		(5,038	)
Noninterest expense excluding amortization of intangible assets (Non-GAAP)²	[h]		123,241			108,947			73,277			232,188			142,315
Acquisition and restructuring expenses, excluding initial provision expenses			(16,600	)		(26,026	)		(2,212	)		(42,626	)		(2,620	)
Adjusted noninterest expense (Non-GAAP)²	[i]	$	106,641		$	82,921		$	71,065		$	189,562		$	139,695

Efficiency ratio (Non-GAAP)²	[h÷e]		63.91	%		77.13	%		62.64	%		69.50	%		60.67	%
Adjusted efficiency ratio (Non-GAAP)²	[i÷f]		55.30	%		58.70	%		60.89	%		56.74	%		61.58	%

Average total assets	[j]	$	19,068,086		$	14,831,298		$	12,089,692		$	16,961,396		$	12,056,950
Adjusted noninterest expense to average assets (Non-GAAP)²^,³	[i÷j]		2.24	%		2.27	%		2.36	%		2.25	%		2.33	%

___________________________________________

Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
Beginning in the second quarter of 2025, Busey revised its presentation, for all periods presented, to reclassify the provision for unfunded commitments so that it is now included within the provision for credit losses; therefore, it is no longer included within total noninterest expense. This change affects all measures and ratios derived from total noninterest expense.
Annualized measure.

Tangible Assets, Tangible Common Equity, and Related Measures and Ratio

		As of
*(dollars in thousands, except per share amounts)*		June 30, 2025			March 31, 2025			June 30, 2024
Total assets (GAAP)		$	18,918,740		$	19,464,252		$	11,971,416
Goodwill and other intangible assets, net			(488,181	)		(496,118	)		(370,580	)
Tangible assets (Non-GAAP)¹	[a]	$	18,430,559		$	18,968,134		$	11,600,836

Total stockholders’ equity (GAAP)		$	2,412,546		$	2,179,606		$	1,333,810
Preferred stock and additional paid in capital on preferred stock			(215,197	)		(7,750	)		—
Common equity	[b]		2,197,349			2,171,856			1,333,810
Goodwill and other intangible assets, net			(488,181	)		(496,118	)		(370,580	)
Tangible common equity (Non-GAAP)¹	[c]	$	1,709,168		$	1,675,738		$	963,230

Tangible common equity to tangible assets (Non-GAAP)¹	[c÷a]		9.27	%		8.83	%		8.30	%

Ending number of common shares outstanding (GAAP)	[d]		89,104,678			90,008,178			56,746,937
Book value per common share (Non-GAAP)	[b÷d]	$	24.66		$	24.13		$	23.50
Tangible book value per common share (Non-GAAP)	[c÷d]	$	19.18		$	18.62		$	16.97

___________________________________________

Beginning in 2025, Busey revised its calculation of tangible assets and tangible common equity for all periods presented to exclude any tax adjustment.

Core Deposits and Related Ratio

		As of
*(dollars in thousands)*		June 30, 2025			March 31, 2025			June 30, 2024
Total deposits (GAAP)	[a]	$	15,801,772		$	16,459,470		$	9,976,135
Brokered deposits, excluding brokered time deposits of $250,000 or more			(353,614	)		(722,224	)		(43,089	)
Time deposits of $250,000 or more			(827,762	)		(867,035	)		(314,461	)
Core deposits (Non-GAAP)	[b]	$	14,620,396		$	14,870,211		$	9,618,585

Core deposits to total deposits (Non-GAAP)	[b÷a]		92.52	%		90.34	%		96.42	%

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Busey’s financial condition, results of operations, plans, objectives, future performance, and business. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of Busey’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should,” “position,” or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and Busey undertakes no obligation to update any statement in light of new information or future events.

A number of factors, many of which are beyond Busey’s ability to control or predict, could cause actual results to differ materially from those in any forward-looking statements. These factors include, among others, the following: (1) the strength of the local, state, national, and international economies and financial markets (including effects of inflationary pressures, the threat or implementation of tariffs, trade wars, and changes to immigration policy); (2) changes in, and the interpretation and prioritization of, local, state, and federal laws, regulations, and governmental policies (including those concerning Busey’s general business); (3) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics, or other adverse external events that could cause economic deterioration or instability in credit markets (including Russia’s invasion of Ukraine and the conflict in the Middle East); (4) unexpected results of acquisitions, including the acquisition of CrossFirst, which may include the failure to realize the anticipated benefits of the acquisitions and the possibility that the transaction and integration costs may be greater than anticipated; (5) the imposition of tariffs or other governmental policies impacting the value of products produced by Busey’s commercial borrowers; (6) new or revised accounting policies and practices as may be adopted by state and federal regulatory banking agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission, or the Public Company Accounting Oversight Board; (7) changes in interest rates and prepayment rates of Busey’s assets (including the impact of sustained elevated interest rates); (8) increased competition in the financial services sector (including from non-bank competitors such as credit unions and fintech companies) and the inability to attract new customers; (9) technological changes implemented by us and other parties, including our third-party vendors, which may have unforeseen consequences to us and our customers, including the development and implementation of tools incorporating artificial intelligence; (10) the loss of key executives or associates, talent shortages, and employee turnover; (11) unexpected outcomes and costs of existing or new litigation, investigations, or other legal proceedings, inquiries, and regulatory actions involving Busey (including with respect to Busey’s Illinois franchise taxes); (12) fluctuations in the value of securities held in Busey’s securities portfolio, including as a result of changes in interest rates; (13) credit risk and risk from concentrations (by type of borrower, geographic area, collateral, and industry), within Busey’s loan portfolio and large loans to certain borrowers (including commercial real estate loans); (14) the concentration of large deposits from certain clients who have balances above current Federal Deposit Insurance Corporation insurance limits and may withdraw deposits to diversify their exposure; (15) the level of non-performing assets on Busey’s balance sheets; (16) interruptions involving information technology and communications systems or third-party servicers; (17) breaches or failures of information security controls or cybersecurity-related incidents; (18) the economic impact on Busey and its customers of climate change, natural disasters, and exceptional weather occurrences such as tornadoes, hurricanes, floods, blizzards, and droughts; (19) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact Busey’s cost of funds; (20) the ability to maintain an adequate level of allowance for credit losses on loans; (21) the effectiveness of Busey’s risk management framework; and (22) the ability of Busey to manage the risks associated with the foregoing. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

Additional information concerning Busey and its business, including additional factors that could materially affect Busey’s financial results, is included in Busey’s filings with the Securities and Exchange Commission.

END NOTES

1	Annualized measure.
2	Represents a non-GAAP financial measure. For a reconciliation to the most directly comparable financial measure calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”), see “Non-GAAP Financial Information.”
3	The blended benchmark consists of 60% MSCI All Country World Index and 40% Bloomberg Intermediate US Government/Credit Total Return Index.
4	Estimated uninsured and uncollateralized deposits consist of account balances in excess of the $250,000 Federal Deposit Insurance Corporation insurance limit, less intercompany accounts, fully collateralized accounts (including preferred deposits), and pass-through accounts where clients have deposit insurance at the correspondent financial institution.
5	On- and off-balance sheet liquidity is comprised of cash and cash equivalents, debt securities excluding those pledged as collateral, brokered deposits, and Busey’s borrowing capacity through its revolving credit facility, the FHLB, the Federal Reserve Bank, and federal funds purchased lines.
6	Capital amounts and ratios for the second quarter of 2025 are not yet finalized and are subject to change.

INVESTOR CONTACT: Scott A. Phillips, Interim Chief Financial Officer | 239-689-7167

The MIL Network –

July 23, 2025

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

Source: GlobeNewswire (MIL-OSI)

Second-quarter highlights

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

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

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

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

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

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

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

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

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

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

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

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

Quarter Highlights

Executing our portfolio optimization strategy

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

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

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

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

Key awards and technology achievements

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

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

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

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

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

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

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

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

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

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

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

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

Consolidated Financial Results

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

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

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

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

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

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

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

Other Financial Items

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

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

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

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

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

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

Results by Reporting Segment

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

Oilfield Services & Equipment

(in millions)	Three Months Ended									Variance
Segment results	June 30, 2025			March 31, 2025			June 30, 2024			Sequential		Year-over-year
Orders	$	3,503		$	3,281		$	4,068		7	%	(14	%)
Revenue	$	3,617		$	3,499		$	4,011		3	%	(10	%)
EBITDA	$	677		$	623		$	716		9	%	(5	%)
EBITDA margin		18.7	%		17.8	%		17.8	%	0.9pts		0.9pts

(in millions)	Three Months Ended						Variance
Revenue by Product Line	June 30, 2025		March 31, 2025		June 30, 2024		Sequential		Year-over-year
Well Construction	$	921	$	892	$	1,090	3	%	(16	%)
Completions, Intervention, and Measurements		935		925		1,118	1	%	(16	%)
Production Solutions		968		899		958	8	%	1	%
Subsea & Surface Pressure Systems		793		782		845	1	%	(6	%)
Total Revenue	$	3,617	$	3,499	$	4,011	3	%	(10	%)

(in millions)	Three Months Ended						Variance
Revenue by Geographic Region	June 30, 2025		March 31, 2025		June 30, 2024		Sequential		Year-over-year
North America	$	928	$	922	$	1,023	1	%	(9	%)
Latin America		639		568		663	12	%	(4	%)
Europe/CIS/Sub-Saharan Africa		653		580		827	13	%	(21	%)
Middle East/Asia		1,398		1,429		1,498	(2	%)	(7	%)
Total Revenue	$	3,617	$	3,499	$	4,011	3	%	(10	%)

North America	$	928	$	922	$	1,023	1	%	(9	%)
International	$	2,689	$	2,577	$	2,988	4	%	(10	%)

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

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

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

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

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

Industrial & Energy Technology

(in millions)	Three Months Ended									Variance
Segment results	June 30, 2025			March 31, 2025			June 30, 2024			Sequential		Year-over-year
Orders	$	3,530		$	3,178		$	3,458		11	%	2	%
Revenue	$	3,293		$	2,928		$	3,128		12	%	5	%
EBITDA	$	585		$	501		$	497		17	%	18	%
EBITDA margin		17.8	%		17.1	%		15.9	%	0.7pts		1.9pts

(in millions)	Three Months Ended						Variance
Orders by Product Line	June 30, 2025		March 31, 2025		June 30, 2024		Sequential		Year-over-year
Gas Technology Equipment	$	781	$	1,335	$	1,493	(42	%)	(48	%)
Gas Technology Services		986		913		769	8	%	28	%
Total Gas Technology		1,767		2,248		2,261	(21	%)	(22	%)
Industrial Products		513		501		524	2	%	(2	%)
Industrial Solutions		327		281		281	16	%	16	%
Total Industrial Technology		839		782		805	7	%	4	%
Climate Technology Solutions		923		148		392	F		F
Total Orders	$	3,530	$	3,178	$	3,458	11	%	2	%

(in millions)	Three Months Ended						Variance
Revenue by Product Line	June 30, 2025		March 31, 2025		June 30, 2024		Sequential		Year-over-year
Gas Technology Equipment	$	1,624	$	1,456	$	1,539	12	%	6	%
Gas Technology Services		752		592		691	27	%	9	%
Total Gas Technology		2,377		2,047		2,230	16	%	7	%
Industrial Products		488		445		509	10	%	(4	%)
Industrial Solutions		273		258		262	6	%	4	%
Total Industrial Technology		761		703		770	8	%	(1	%)
Climate Technology Solutions		156		178		128	(12	%)	22	%
Total Revenue	$	3,293	$	2,928	$	3,128	12	%	5	%

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

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

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

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

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

Reconciliation of GAAP to non-GAAP Financial Measures

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

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

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

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

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

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

	Three Months Ended
(in millions, except per share amounts)	June 30, 2025			March 31, 2025			June 30, 2024
Net income attributable to Baker Hughes (GAAP)	$	701		$	402		$	579
Change in fair value of equity securities		(119	)		140			(19	)
Other adjustments		17			—			14
Tax adjustments⁽¹⁾		24			(32	)		(6	)
Total adjustments, net of income tax		(78	)		108			(11	)
Less: adjustments attributable to noncontrolling interests		—			—			—
Adjustments attributable to Baker Hughes		(78	)		108			(11	)
Adjusted net income attributable to Baker Hughes (non-GAAP)	$	623		$	509		$	568

Denominator:
Weighted-average shares of Class A common stock outstanding diluted		991			999			1,001
Adjusted earnings per share – diluted (non-GAAP)	$	0.63		$	0.51		$	0.57

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

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

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

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

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

Financial Tables (GAAP)

Condensed Consolidated Statements of Income (Loss)
(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions, except per share amounts)		2025			2024			2025			2024
Revenue	$	6,910		$	7,139		$	13,337		$	13,557
Costs and expenses:
Cost of revenue		5,295			5,493			10,247			10,469
Selling, general and administrative		567			643			1,144			1,261
Research and development costs		161			158			307			322
Other (income) expense, net		(134	)		(26	)		6			(48	)
Interest expense, net		54			47			105			88
Income before income taxes		967			824			1,528			1,465
Provision for income taxes		(256	)		(243	)		(408	)		(421	)
Net income		711			581			1,120			1,044
Less: Net income attributable to noncontrolling interests		10			2			17			10
Net income attributable to Baker Hughes Company	$	701		$	579		$	1,103		$	1,034

Per share amounts:
Basic income per Class A common stock	$	0.71		$	0.58		$	1.11		$	1.04
Diluted income per Class A common stock	$	0.71		$	0.58		$	1.11		$	1.03

Weighted average shares:
Class A basic		988			996			990			997
Class A diluted		991			1,001			995			1,002

Cash dividend per Class A common stock	$	0.23		$	0.21		$	0.46		$	0.42

Condensed Consolidated Statements of Financial Position
(Unaudited)

(In millions)	June 30, 2025		December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	3,087	$	3,364
Current receivables, net		6,511		7,122
Inventories, net		5,105		4,954
All other current assets		2,915		1,771
Total current assets		17,618		17,211
Property, plant and equipment, less accumulated depreciation		5,176		5,127
Goodwill		5,801		6,078
Other intangible assets, net		3,919		3,951
Contract and other deferred assets		1,841		1,730
All other assets		4,385		4,266
Total assets	$	38,740	$	38,363
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	4,340	$	4,542
Short-term debt		66		53
Progress collections and deferred income		5,680		5,672
All other current liabilities		2,429		2,724
Total current liabilities		12,515		12,991
Long-term debt		5,968		5,970
Liabilities for pensions and other postretirement benefits		997		988
All other liabilities		1,392		1,359
Equity		17,868		17,055
Total liabilities and equity	$	38,740	$	38,363

Outstanding Baker Hughes Company shares:
Class A common stock		985		990

Condensed Consolidated Statements of Cash Flows
(Unaudited)

	Three Months Ended June 30,			Six Months Ended June 30,
(In millions)		2025			2025			2024
Cash flows from operating activities:
Net income	$	711		$	1,120		$	1,044
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		293			579			566
Stock-based compensation cost		52			102			101
Change in fair value of equity securities		(119	)		21			(71	)
(Benefit) provision for deferred income taxes		36			(17	)		33
Working capital		(120	)		98			(36	)
Other operating items, net		(343	)		(684	)		(505	)
Net cash flows provided by operating activities		510			1,219			1,132
Cash flows from investing activities:
Expenditures for capital assets		(301	)		(601	)		(625	)
Proceeds from disposal of assets		30			74			101
Other investing items, net		(15	)		(69	)		(6	)
Net cash flows used in investing activities		(286	)		(596	)		(530	)
Cash flows from financing activities:
Repayment of long-term debt		—			—			(125	)
Dividends paid		(227	)		(456	)		(419	)
Repurchase of Class A common stock		(196	)		(384	)		(324	)
Other financing items, net		(20	)		(105	)		(61	)
Net cash flows used in financing activities		(443	)		(945	)		(929	)
Effect of currency exchange rate changes on cash and cash equivalents		29			45			(35	)
Decrease in cash and cash equivalents		(190	)		(277	)		(362	)
Cash and cash equivalents, beginning of period		3,277			3,364			2,646
Cash and cash equivalents, end of period	$	3,087		$	3,087		$	2,284
Supplemental cash flows disclosures:
Income taxes paid, net of refunds	$	211		$	418		$	336
Interest paid	$	98		$	148		$	150

Supplemental Financial Information

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

Conference Call and Webcast

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

Forward-Looking Statements

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

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

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

Economic and political conditions – the impact of worldwide economic conditions and rising inflation; the impact of tariffs and the potential for significant increases thereto; the impact of global trade policy and the potential for significant changes thereto; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions and sanctions.

Orders and RPO – our ability to execute on orders and RPO in accordance with agreed specifications, terms and conditions and convert those orders and RPO to revenue and cash.

Oil and gas market conditions – the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; liquefied natural gas supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries (“OPEC”) policy and the adherence by OPEC nations to their OPEC production quotas.

Terrorism and geopolitical risks – war, military action, terrorist activities or extended periods of international conflict, particularly involving any petroleum-producing or consuming regions, including Russia and Ukraine; and the recent conflict in the Middle East; labor disruptions, civil unrest or security conditions where we operate; potentially burdensome taxation, expropriation of assets by governmental action; cybersecurity risks and cyber incidents or attacks; epidemic outbreaks.

About Baker Hughes:

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

For more information, please contact:

Investor Relations

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

Media Relations

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

The MIL Network –

July 23, 2025

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

Source: GlobeNewswire (MIL-OSI)

Second-quarter highlights

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

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

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

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

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

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

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

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

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