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

Source: GlobeNewswire (MIL-OSI)

First-quarter highlights

Orders of $6.5 billion, including $3.2 billion of IET orders.
RPO of $33.2 billion, including record IET RPO of $30.4 billion.
Revenue of $6.4 billion, consistent year-over-year.
Attributable net income of $402 million.
GAAP diluted EPS of $0.40 and adjusted diluted EPS* of $0.51.
Adjusted EBITDA* of $1,037 million, up 10% year-over-year.
Cash flows from operating activities of $709 million and free cash flow* of $454 million.
Returns to shareholders of $417 million, including $188 million of share repurchases.

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

“Baker Hughes started the year strong, building on the positive momentum from 2024 and setting multiple first-quarter records. Our continued transformation initiatives and strong execution continue to drive structural margin improvement across both segments. The operational transformation and streamlining efforts have created a solid foundation to optimize margins and enhance returns, even in a challenging environment,” said Lorenzo Simonelli, Baker Hughes chairman and chief executive officer.

“In our IET segment, we booked $3.2 billion of orders, including our first data center awards, totaling more than 350 MW of power solutions for this rapidly evolving market. In addition to expanding opportunities for data centers, we have a strong pipeline of LNG, FPSO and gas infrastructure projects that support our order outlook for this year.”

“In OFSE, EBITDA remained resilient as our margins saw noticeable improvement compared to last year even while segment revenue fell. This is a testament to the team’s hard work in changing the way the business operates.”

“Although our outlook is tempered by broader macro and trade policy uncertainty, we remain confident in our strategy and the resilience of our portfolio. We believe Baker Hughes is well positioned to navigate near-term challenges and deliver sustainable growth in shareholder value.”

“I want to thank our employees, whose hard work, dedication and focus have been instrumental to the continued success of Baker Hughes. As we continue to execute our strategy amidst an uncertain macro backdrop, we remain committed to our customers, shareholders and employees,” 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)	March 31, 2025		December 31, 2024		March 31, 2024		Sequential		Year-over- year
Orders	$	6,459	$	7,496	$	6,542	(14	%)	(1	%)
Revenue		6,427		7,364		6,418	(13	%)	—	%
Net income attributable to Baker Hughes		402		1,179		455	(66	%)	(12	%)
Adjusted net income attributable to Baker Hughes*		509		694		429	(27	%)	19	%
Adjusted EBITDA*		1,037		1,310		943	(21	%)	10	%
Diluted earnings per share (EPS)		0.40		1.18		0.45	(66	%)	(11	%)
Adjusted diluted EPS*		0.51		0.70		0.43	(27	%)	19	%
Cash flow from operating activities		709		1,189		784	(40	%)	(10	%)
Free cash flow*		454		894		502	(49	%)	(10	%)

* 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.

Quarter Highlights

Baker Hughes expanded its leadership position in liquefied natural gas (“LNG”) in the first quarter, including a liquefaction train award from Bechtel for a project in North America, where the Company will provide four main refrigerant compressors driven by LM6000+ gas turbines and four expander-compressors. This award builds on the previously announced December 2024 award and further demonstrates the strength of the Company’s collaboration with Bechtel to support North America LNG development.

During the quarter, Industrial & Energy Technology (“IET”) signed key strategic framework agreements with LNG operators. The Company agreed to provide gas turbines and refrigerant compressor technology, along with maintenance services, for Trains 4 to 8 of NextDecade’s Rio Grande LNG Facility. Baker Hughes also reached an agreement with Argent LNG to provide liquefaction and power solutions and related aftermarket services for its proposed 24 MTPA LNG export facility in Louisiana. The project will employ Baker Hughes’ NMBL™ modularized LNG solution, driven by the LM9000 gas turbine, while also utilizing the Company’s iCenter™ and Cordant™ digital solution, to enhance the plant’s operational efficiency.

Baker Hughes also demonstrated its continuous commitment to critical gas infrastructure projects with a strategic win in the North America pipeline compression market. The award includes the provision of two gas compression stations for a total of 10 Frame 5/2E gas turbines and 10 centrifugal compressors, anti-surge valves and critical spare parts.

In the first quarter, Baker Hughes made significant progress in reliable and sustainable power solutions deployment for data centers. In addition to being awarded over 350 MW of NovaLT™ turbines to power data centers with various other customers, the Company partnered with Frontier Infrastructure to accelerate the development of large-scale carbon capture and storage (“CCS”) and power solutions for data centers and industrial customers in the U.S. This partnership will leverage technologies and services across the Baker Hughes enterprise by providing CO₂ compression, NovaLT™ gas turbines, digital monitoring solutions, well construction and completion services.

In continued demonstration of Gas Technology’s lifecycle offerings in IET, the Company received several aftermarket service awards during the quarter. In Algeria, the Gas Technology Services (“GTS”) team is partnering with SONATRACH to deliver an upgrade solution for the modernization of a key compressor station. In the Middle East, Gas Technology received multiple equipment and services awards to support one of the world’s largest gas processing plants. The scope includes rejuvenation of two existing gas turbines to drive new compressors and the supply of a third compression train to support production expansion.

IET’s Industrial Solutions gained momentum with its Cordant™ Asset Performance Management (“APM”) solution, securing several contracts with customers across multiple regions. ADNOC Offshore will deploy the full APM suite to enhance production availability and efficiency. In the Americas, a large international oil company will conduct a proof of concept across multiple equipment trains, to support a shift from proactive to predictive maintenance. In Australia, the Company signed agreements to develop asset maintenance strategies for new mine sites supporting truck fleet maintenance.

Oilfield Services & Equipment (“OFSE”) received a significant award from ExxonMobil Guyana to provide specialty chemicals and related services for its Uaru and Whiptail offshore greenfield developments in the country’s prolific Stabroek Block, highlighting the differentiated capabilities of our Production Solutions offering. For this multi-year contract, the scope will cover topsides, subsea, water injection and utility chemicals to help ExxonMobil Guyana achieve optimal production.

OFSE continues to leverage the Company’s innovative solutions to help Petrobras unlock Brazil’s vast energy supply. In the quarter and following an open tender, Baker Hughes received a significant, multi-year fully integrated completions systems contract from Petrobras across multiple deepwater fields. A range of Baker Hughes’ technologies, including the new SureCONTROL^TM Premium interval control valve, has been specifically tailored to meet the needs of the country’s offshore developments.

OFSE secured a multi-year contract with Dubai Petroleum Establishment, for and on behalf of Dubai Supply Authority, to provide integrated coiled-tubing drilling services for the Company’s Margham Gas storage project. This follows a third-quarter 2024 IET award for integrated compressor line units for the same project, demonstrating growing commercial synergies across Baker Hughes’ diverse portfolio.

The Company drove growth in Mature Assets Solutions, signing a multi-year framework agreement with Equinor to help establish a new Center of Excellence for Plug & Abandonment work in the North Sea. Based within OFSE’s operations in Bergen and Stavanger, Norway, this hub will ensure economical, reliable solutions are implemented to responsibly abandon each well, allowing Equinor to maximize value of their assets and allocate more resources to exploration and discovery.

On the digital front, OFSE received an award from the State Oil Company of Azerbaijan Republic (“SOCAR”) to expand deployment of Leucipa™ automated field production solution for all its wells, including those with non-Baker Hughes electric submersible pumps, in the Absheron and Gunseli fields. Leucipa also marked its first deployment in Sub-Saharan Africa through an agreement with the NNPC/FIRST E&P joint venture, which will utilize the platform across its offshore wells in the Niger Delta.

Consolidated Financial Results

Revenue for the quarter was $6,427 million, a decrease of 13% sequentially and up $9 million year-over-year. The increase in revenue year-over-year was driven by an increase in IET and partially offset by a decrease in OFSE.

The Company’s total book-to-bill ratio in the first 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 first quarter of 2025 was $402 million. Net income decreased $777 million sequentially and decreased $53 million year-over-year.

Adjusted net income (a non-GAAP financial measure) for the first quarter of 2025 was $509 million, which excludes adjustments totaling $108 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 first quarter of 2025 was down 27% sequentially and up 19% year-over-year.

Depreciation and amortization for the first quarter of 2025 was $285 million.

Adjusted EBITDA (a non-GAAP financial measure) for the first quarter of 2025 was $1,037 million, which excludes adjustments totaling $140 million. See Table 1a in the section titled “Reconciliation of GAAP to non-GAAP Financial Measures.” Adjusted EBITDA for the first quarter was down 21% sequentially and up 10% year-over-year.

The sequential decrease in adjusted net income and adjusted EBITDA was primarily driven by lower volume in both segments, partially offset by productivity and structural cost-out initiatives. The year-over-year increase in adjusted net income and adjusted EBITDA was driven by increased volume in IET including higher proportionate growth in Gas Technology Equipment (“GTE”) and productivity, structural cost-out initiatives and higher pricing in both segments, partially offset by decreased volume and business mix in OFSE and cost inflation in both segments.

Other Financial Items

Remaining Performance Obligations (“RPO”) in the first quarter of 2025 ended at $33.2 billion, a decrease of $0.1 billion from the fourth quarter of 2024. OFSE RPO was $2.8 billion, down 7% sequentially, while IET RPO was $30.4 billion, up $300 million sequentially. Within IET RPO, GTE RPO was $11.9 billion and GTS RPO was $15.1 billion.

Income tax expense in the first quarter of 2025 was $152 million.

Other (income) expense, net in the first quarter of 2025 was $140 million, primarily related to changes in fair value for equity securities of $140 million.

GAAP diluted earnings per share was $0.40. Adjusted diluted earnings per share (a non-GAAP financial measure) was $0.51. 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 $709 million for the first quarter of 2025. Free cash flow (a non-GAAP financial measure) for the quarter was $454 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 $255 million for the first quarter of 2025, of which $158 million was for OFSE and $83 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	March 31, 2025			December 31, 2024			March 31, 2024			Sequential		Year-over- year
Orders	$	3,281		$	3,740		$	3,624		(12	%)	(9	%)
Revenue	$	3,499		$	3,871		$	3,783		(10	%)	(8	%)
EBITDA	$	623		$	755		$	644		(18	%)	(3	%)
EBITDA margin		17.8	%		19.5	%		17.0	%	-1.7pts		0.8pts

(in millions)	Three Months Ended						Variance
Revenue by Product Line	March 31, 2025		December 31, 2024		March 31, 2024		Sequential		Year-over- year
Well Construction	$	892	$	943	$	1,061	(5	%)	(16	%)
Completions, Intervention, and Measurements		925		1,022		1,006	(9	%)	(8	%)
Production Solutions		899		974		945	(8	%)	(5	%)
Subsea & Surface Pressure Systems		782		932		771	(16	%)	1	%
Total Revenue	$	3,499	$	3,871	$	3,783	(10	%)	(8	%)

(in millions)	Three Months Ended						Variance
Revenue by Geographic Region	March 31, 2025		December 31, 2024		March 31, 2024		Sequential		Year-over- year
North America	$	922	$	971	$	990	(5	%)	(7	%)
Latin America		568		661		637	(14	%)	(11	%)
Europe/CIS/Sub-Saharan Africa		580		740		750	(22	%)	(23	%)
Middle East/Asia		1,429		1,499		1,405	(5	%)	2	%
Total Revenue	$	3,499	$	3,871	$	3,783	(10	%)	(8	%)

North America	$	922	$	971	$	990	(5	%)	(7	%)
International	$	2,577	$	2,900	$	2,793	(11	%)	(8	%)

EBITDA excludes depreciation and amortization of $226 million, $229 million, and $222 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. EBITDA margin is defined as EBITDA divided by revenue.

OFSE orders of $3,281 million for the first quarter of 2025 decreased by 12% sequentially. Subsea and Surface Pressure Systems orders were $532 million, down 34% sequentially, and down 16% year-over-year.

OFSE revenue of $3,499 million for the first quarter of 2025 was down 10% sequentially, and down 8% year-over-year.

North America revenue was $922 million, down 5% sequentially. International revenue was $2,577 million, down 11% sequentially, with declines across all regions.

Segment EBITDA for the first quarter of 2025 was $623 million, a decrease of $132 million, or 18% sequentially. The sequential decrease in EBITDA was primarily driven by lower volume, partially mitigated by productivity from structural cost-out initiatives.

Industrial & Energy Technology

(in millions)	Three Months Ended									Variance
Segment results	March 31, 2025			December 31, 2024			March 31, 2024			Sequential		Year-over- year
Orders	$	3,178		$	3,756		$	2,918		(15	%)	9	%
Revenue	$	2,928		$	3,492		$	2,634		(16	%)	11	%
EBITDA	$	501		$	639		$	386		(22	%)	30	%
EBITDA margin		17.1	%		18.3	%		14.7	%	-1.2pts		2.4pts

(in millions)	Three Months Ended						Variance
Orders by Product Line	March 31, 2025		December 31, 2024		March 31, 2024		Sequential		Year-over- year
Gas Technology Equipment	$	1,335	$	1,865	$	1,230	(28	%)	9	%
Gas Technology Services		913		902		692	1	%	32	%
Total Gas Technology		2,248		2,767		1,922	(19	%)	17	%
Industrial Products		501		515		546	(3	%)	(8	%)
Industrial Solutions		281		320		257	(12	%)	10	%
Total Industrial Technology		782		835		803	(6	%)	(3	%)
Climate Technology Solutions		148		154		193	(4	%)	(23	%)
Total Orders	$	3,178	$	3,756	$	2,918	(15	%)	9	%

(in millions)	Three Months Ended						Variance
Revenue by Product Line	March 31, 2025		December 31, 2024		March 31, 2024		Sequential		Year-over- year
Gas Technology Equipment	$	1,456	$	1,663	$	1,210	(12	%)	20	%
Gas Technology Services		592		796		614	(26	%)	(4	%)
Total Gas Technology		2,047		2,459		1,824	(17	%)	12	%
Industrial Products		445		548		462	(19	%)	(4	%)
Industrial Solutions		258		282		265	(8	%)	(2	%)
Total Industrial Technology		703		830		727	(15	%)	(3	%)
Climate Technology Solutions		178		204		83	(13	%)	114	%
Total Revenue	$	2,928	$	3,492	$	2,634	(16	%)	11	%

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

IET orders of $3,178 million for the first quarter of 2025 increased by $260 million, or 9% year-over-year. The increase was driven primarily by Gas Technology, up $326 million or 17% year-over-year.

IET revenue of $2,928 million for the first quarter of 2025 increased $294 million, or 11% year-over-year. The increase was driven by Gas Technology Equipment, up $246 million or 20% year-over-year, and Climate Technology Solutions, up $95 million or 114% year-over-year.

Segment EBITDA for the quarter was $501 million, an increase of $114 million, or 30% year-over-year. The year-over-year increase in segment EBITDA was driven by productivity, positive pricing and increased volume including higher proportionate growth in GTE, 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)	March 31, 2025		December 31, 2024			March 31, 2024
Net income attributable to Baker Hughes (GAAP)	$	402	$	1,179		$	455
Net income attributable to noncontrolling interests		7		11			8
Provision (benefit) for income taxes		152		(398	)		178
Interest expense, net		51		54			41
Depreciation & amortization		285		291			283
Restructuring		—		258			—
Inventory impairment⁽¹⁾		—		73			—
Change in fair value of equity securities⁽²⁾		140		(196	)		(52	)
Other charges and credits⁽²⁾		—		38			30
Adjusted EBITDA (non-GAAP)		1,037		1,310			943
Corporate costs		85		84			88
Other income / (expense) not allocated to segments		1		—			—
Total Segment EBITDA (non-GAAP)	$	1,124	$	1,394		$	1,030
OFSE		623		755			644
IET		501		639			386

⁽¹⁾ Charges for inventory impairments are reported in “Cost of goods sold” in the condensed consolidated statements of income (loss).

⁽²⁾ 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)	March 31, 2025			December 31, 2024			March 31, 2024
Net income attributable to Baker Hughes (GAAP)	$	402		$	1,179		$	455
Restructuring		—			258			—
Inventory impairment		—			73			—
Change in fair value of equity securities		140			(196	)		(52	)
Other adjustments		—			30			32
Tax adjustments⁽¹⁾		(32	)		(650	)		(6	)
Total adjustments, net of income tax		108			(485	)		(26	)
Less: adjustments attributable to noncontrolling interests		—			—			—
Adjustments attributable to Baker Hughes		108			(485	)		(26	)
Adjusted net income attributable to Baker Hughes (non-GAAP)	$	509		$	694		$	429

Denominator:
Weighted-average shares of Class A common stock outstanding diluted		999			999			1,004
Adjusted earnings per share – diluted (non-GAAP)	$	0.51		$	0.70		$	0.43

⁽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)	March 31, 2025			December 31, 2024			March 31, 2024
Net cash flows from operating activities (GAAP)	$	709		$	1,189		$	784
Add: cash used for capital expenditures, net of proceeds from disposal of assets		(255	)		(295	)		(282	)
Free cash flow (non-GAAP)	$	454		$	894		$	502

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 March 31,
(In millions, except per share amounts)		2025			2024
Revenue	$	6,427		$	6,418
Costs and expenses:
Cost of revenue		4,952			4,976
Selling, general and administrative		577			618
Research and development costs		146			164
Other (income) expense, net		140			(22	)
Interest expense, net		51			41
Income before income taxes		561			641
Provision for income taxes		(152	)		(178	)
Net income		409			463
Less: Net income attributable to noncontrolling interests		7			8
Net income attributable to Baker Hughes Company	$	402		$	455

Per share amounts:
Basic income per Class A common stock	$	0.41		$	0.46
Diluted income per Class A common stock	$	0.40		$	0.45

Weighted average shares:
Class A basic		992			998
Class A diluted		999			1,004

Cash dividend per Class A common stock	$	0.23		$	0.21

Condensed Consolidated Statements of Financial Position

(Unaudited)

(In millions)	March 31, 2025		December 31, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	3,277	$	3,364
Current receivables, net		6,710		7,122
Inventories, net		5,161		4,954
All other current assets		1,693		1,771
Total current assets		16,841		17,211
Property, plant and equipment, less accumulated depreciation		5,168		5,127
Goodwill		6,126		6,078
Other intangible assets, net		3,927		3,951
Contract and other deferred assets		1,680		1,730
All other assets		4,368		4,266
Total assets	$	38,110	$	38,363
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	4,465	$	4,542
Short-term debt		55		53
Progress collections and deferred income		5,589		5,672
All other current liabilities		2,485		2,724
Total current liabilities		12,594		12,991
Long-term debt		5,969		5,970
Liabilities for pensions and other postretirement benefits		985		988
All other liabilities		1,356		1,359
Equity		17,206		17,055
Total liabilities and equity	$	38,110	$	38,363

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

Condensed Consolidated Statements of Cash Flows

(Unaudited)
	Three Months Ended March 31,
(In millions)		2025			2024
Cash flows from operating activities:
Net income	$	409		$	463
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization		285			283
Stock-based compensation cost		50			51
Change in fair value of equity securities		140			(52	)
Benefit for deferred income taxes		(53	)		(24	)
Working capital		218			209
Other operating items, net		(340	)		(146	)
Net cash flows provided by operating activities		709			784
Cash flows from investing activities:
Expenditures for capital assets		(300	)		(333	)
Proceeds from disposal of assets		45			51
Other investing items, net		(55	)		13
Net cash flows used in investing activities		(310	)		(269	)
Cash flows from financing activities:
Dividends paid		(229	)		(210	)
Repurchase of Class A common stock		(188	)		(158	)
Other financing items, net		(85	)		(59	)
Net cash flows used in financing activities		(502	)		(427	)
Effect of currency exchange rate changes on cash and cash equivalents		16			(17	)
Increase (decrease) in cash and cash equivalents		(87	)		71
Cash and cash equivalents, beginning of period		3,364			2,646
Cash and cash equivalents, end of period	$	3,277		$	2,717
Supplemental cash flows disclosures:
Income taxes paid, net of refunds	$	207		$	108
Interest paid	$	50		$	48

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, April 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 Lynch
+1 713-906-8407
adrienne.lynch@bakerhughes.com

The MIL Network –

April 23, 2025

MIL-OSI: QCR Holdings, Inc. Announces Net Income of $25.8 Million for the First Quarter of 2025

Source: GlobeNewswire (MIL-OSI)

First Quarter 2025 Highlights

Net income of $25.8 million, or $1.52 per diluted share
Adjusted net income (non-GAAP) of $26.0 million, or $1.53 per diluted share
Adjusted NIM (TEY) (non-GAAP) expanded to 3.41%
Robust core deposit growth of 20% annualized
Wealth management revenue growth of 14% annualized
Tangible book value per share (non-GAAP) grew $1.43, or 11% annualized
TCE/TA ratio (non-GAAP) improved 15 basis points to 9.70%

MOLINE, Ill., April 22, 2025 (GLOBE NEWSWIRE) — QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $25.8 million and diluted earnings per share (“EPS”) of $1.52 for the first quarter of 2025, compared to net income of $30.2 million and diluted EPS of $1.77 for the fourth quarter of 2024.

Adjusted net income (non-GAAP) and adjusted diluted EPS for the first quarter of 2025 were $26.0 million and $1.53, respectively. For the fourth quarter of 2024, adjusted net income (non-GAAP) was $32.8 million and adjusted diluted EPS was $1.93. For the first quarter of 2024, adjusted net income (non-GAAP) was $26.9 million, and adjusted diluted EPS was $1.59.

	For the Quarter Ended
	March 31,		December 31,		March 31,
$ in millions (except per share data)	2025		2024		2024
Net Income	$	25.8	$	30.2	$	26.7
Diluted EPS	$	1.52	$	1.77	$	1.58
Adjusted Net Income (non-GAAP)*	$	26.0	$	32.8	$	26.9
Adjusted Diluted EPS (non-GAAP)*	$	1.53	$	1.93	$	1.59

*Adjusted 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.

“Our first quarter results were highlighted by margin expansion, robust deposit growth, and disciplined expense management. We also had another quarter of strong wealth management revenue growth,” said Larry J. Helling, Chief Executive Officer. “Our performance was further bolstered by continued loan growth while maintaining our excellent asset quality, further strengthening our capital levels, and significantly increasing our tangible book value per share.”

Margin Performance Continues

Net interest income for the first quarter of 2025 totaled $60.0 million, a decrease of $1.2 million from the fourth quarter of 2024, but increased slightly when adjusted for fewer days in the first quarter.

Net interest margin (“NIM”) was 2.95% and NIM on a tax-equivalent yield (“TEY”) basis (non-GAAP) was 3.42% for the first quarter, as compared to 2.95% and 3.43% for the prior quarter, respectively. Adjusted NIM TEY (non-GAAP) of 3.41% for the first quarter of 2025 increased one basis point compared to the fourth quarter of 2024.

“Our adjusted NIM, on a tax equivalent yield basis, increased one basis point from the fourth quarter of 2024 and was within our guidance range, overpowering the dilution from the impact of expired interest rate caps,” said Todd A. Gipple, President and Chief Financial Officer. “Absent the impact from the interest rate caps, our adjusted NIM TEY expanded by five basis points. Looking ahead, we anticipate continued margin expansion and are guiding to second quarter adjusted NIM TEY in the range from static to an increase of four basis points, assuming no Federal Reserve rate cuts,” added Mr. Gipple.

Noninterest Income Driven by Capital Markets and Wealth Management Revenue

Noninterest income for the first quarter of 2025 was influenced by macroeconomic factors, particularly affecting our low-income housing tax credit (“LIHTC”) lending business and its associated capital markets revenue. Noninterest income for the quarter totaled $16.9 million, down from $30.6 million in the fourth quarter of 2024. The Company generated $6.5 million of capital markets revenue during the first quarter, compared to $20.6 million in the prior quarter.

“Our capital markets business was affected by macroeconomic uncertainty. Despite this, demand for affordable housing remains significant. The lower first quarter results in this sector should lead to a larger pipeline for future transactions. Our capital markets activity for the second quarter is normalizing as clients adjust to the current environment,” said Mr. Helling. “As a result, we continue to expect our capital markets revenue to be in a range of $50 to $60 million over the next four quarters. We believe the long-term demand and our growing backlog for new deals will support the sustainability of our LIHTC lending program,” added Mr. Helling.

“Additionally, our wealth management business remained strong in the first quarter of 2025, generating annualized revenue growth of 14% for the quarter driven by growth in new client accounts and assets under management. We expect continued strong growth in this business to be fueled by the strategic investments we made in our Southwest Missouri and Central Iowa markets,” said Mr. Gipple.

Significant Noninterest Expense Reduction

Noninterest expense for the first quarter of 2025 totaled $46.5 million, a decrease compared to $53.5 million for the fourth quarter and $50.7 million for the first quarter of 2024. The $7.0 million linked-quarter decrease was primarily due to lower salary and employee benefits expenses associated with reduced variable compensation.

“Our noninterest expense decreased by 13% during the quarter, primarily due to lower capital markets revenue and its impact on our variable compensation. As a result, expenses were well below the guided range of $52 to $55 million highlighting our expense flexibility,” said Mr. Gipple. “The Company’s efficiency ratio was 60.54% in the first quarter. For the second quarter of 2025 we expect noninterest expense to be in the range of $50 to $53 million which assumes both capital markets revenue and loan growth are within our guidance range,” added Mr. Gipple.

Exceptionally Low Effective Tax Rate

The effective tax rate for the first quarter of 2025 was 1%, down from 9% in the prior quarter. The linked quarter decline is primarily due to a combination of the tax benefits from equity compensation in the first quarter, new state tax credit investments, and lower pre-tax income from lower capital markets revenue. “These factors decreased the mix of our taxable income relative to our tax-exempt income. Our tax-exempt loan and bond portfolios have consistently helped us maintain our low tax liability benefiting our shareholders,” said Mr. Gipple. “Given a more normalized mix of revenue, we expect our effective tax rate to be in the range of 6% to 8% for the second quarter of 2025,” added Mr. Gipple.

Robust Deposit Growth

During the first quarter of 2025, core deposits increased by $332.2 million, or 20% annualized, which allowed the Company to decrease brokered deposits by $56.0 million, and overnight FHLB advances by $140 million. Gross loans and leases held for investment as a percentage of total deposits ratio improved to 92.96% from 96.05% from the prior quarter. “Our deposit growth this quarter reflects our strong execution in expanding market share and deepening relationships with both new and existing clients in our core markets,” added Mr. Helling.

Continued Loan Growth

In the first quarter of 2025, the Company’s total loans and leases held for investment grew by $38.9 million to $6.8 billion. “Loan growth was 4% annualized when adding back the impact from the runoff of m2 Equipment Finance loans. First quarter loan activity was influenced by heightened macroeconomic uncertainty and elevated payoffs. We anticipate that the slowdown in our LIHTC business during this period should lead to a larger pipeline of future activity driven by the ongoing significant demand for low-income housing,” stated Mr. Helling.

“Due to heightened uncertainty, we are suspending our full-year loan growth guidance. Instead, we are providing guidance for the second quarter of 2025, projecting an annualized growth rate of 4% to 6%,” added Mr. Helling.

Asset Quality Remains Excellent

The Company’s nonperforming assets (“NPAs”) to total assets ratio was 0.53% on March 31, 2025, up three basis points from the prior quarter. NPAs totaled $48.1 million at the end of the first quarter of 2025, a $2.6 million increase from the prior quarter. The increase in NPAs during the first quarter was primarily due to the addition of three specific loans, partially offset by the payoff of our largest NPA in January.

The Company’s total criticized loans, a leading indicator of asset quality, declined by $18.2 million on a linked-quarter basis, and the ratio of criticized loans to total loans and leases as of March 31, 2025, improved to 2.06%, as compared to 2.34% as of December 31, 2024. This $18.2 million reduction marks the Company’s lowest criticized loan ratio in five years.

The Company recorded a total provision for credit losses of $4.2 million during the quarter, representing a decline of $0.9 million from the prior quarter. The reduction in the provision for credit losses during the quarter was primarily due to lower loan growth and a decrease in total criticized balances. Net charge-offs were also $4.2 million during the first quarter of 2025, an increase of $0.8 million from the prior quarter. The allowance for credit losses to total loans held for investment was unchanged from the prior quarter at 1.32%.

Strong Tangible Book Value and Regulatory Capital Growth

The Company’s tangible book value per share (non-GAAP) increased by $1.43, or 11% annualized, during the first quarter of 2025 due to the combination of strong earnings, a modest dividend, and negligible changes in accumulated other comprehensive income (“AOCI”).

As of March 31, 2025, the Company’s tangible common equity to tangible assets ratio (“TCE”) (non-GAAP) increased 15 basis points to 9.70%. The improvement in TCE (non-GAAP) was driven by strong earnings as AOCI remained consistent during the quarter. The total risk-based capital ratio increased to 14.16% and the common equity tier 1 ratio increased to 10.26% due to solid earnings growth and modest loan growth during the quarter. By comparison, these ratios were 9.55%, 14.10%, and 10.03%, respectively, as of December 31, 2024. The Company remains focused on maintaining strong regulatory capital and targeting TCE (non-GAAP) in the top quartile of its peer group.

Conference Call Details
The Company will host an earnings call/webcast tomorrow, April 23, 2025, at 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 April 30, 2025. The replay access information is 877-344-7529 (international 412-317-0088); access code 7198237. 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 March 31, 2025, the Company had $9.2 billion in assets, $6.8 billion in loans and $7.3 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

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 and fintech companies, and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (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:
Todd A. Gipple
President
Chief Financial Officer
(309) 743-7745
tgipple@qcrh.com

		QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)

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

			(dollars in thousands)

		CONDENSED BALANCE SHEET

		Cash and due from banks	$	98,994		$	91,732		$	103,840		$	92,173		$	80,988
		Federal funds sold and interest-bearing deposits		225,716			170,592			159,159			102,262			77,020
		Securities, net of allowance for credit losses		1,220,717			1,200,435			1,146,046			1,033,199			1,031,861
		Loans receivable held for sale (1)		2,025			2,143			167,047			246,124			275,344
		Loans/leases receivable held for investment		6,821,142			6,782,261			6,661,755			6,608,262			6,372,992
		Allowance for credit losses		(90,354	)		(89,841	)		(86,321	)		(87,706	)		(84,470	)
		Intangibles		10,400			11,061			11,751			12,441			13,131
		Goodwill		138,595			138,595			138,596			139,027			139,027
		Derivatives		180,997			186,781			261,913			194,354			183,888
		Other assets		544,547			532,271			524,779			531,855			509,768
		Total assets	$	9,152,779		$	9,026,030		$	9,088,565		$	8,871,991		$	8,599,549

		Total deposits	$	7,337,390		$	7,061,187		$	6,984,633		$	6,764,667		$	6,806,775
		Total borrowings		429,921			569,532			660,344			768,671			489,633
		Derivatives		206,925			214,823			285,769			221,798			211,677
		Other liabilities		155,796			183,101			181,199			180,536			184,122
		Total stockholders’ equity		1,022,747			997,387			976,620			936,319			907,342
		Total liabilities and stockholders’ equity	$	9,152,779		$	9,026,030		$	9,088,565		$	8,871,991		$	8,599,549

		ANALYSIS OF LOAN PORTFOLIO
		Loan/lease mix: (2)
		Commercial and industrial – revolving	$	388,479		$	387,991		$	387,409		$	362,115		$	326,129
		Commercial and industrial – other		1,231,198			1,295,961			1,321,053			1,370,561			1,374,333
		Commercial and industrial – other – LIHTC		212,921			218,971			89,028			92,637			96,276
		Total commercial and industrial		1,832,598			1,902,923			1,797,490			1,825,313			1,796,738
		Commercial real estate, owner occupied		599,488			605,993			622,072			633,596			621,069
		Commercial real estate, non-owner occupied		1,040,281			1,077,852			1,103,694			1,082,457			1,055,089
		Construction and land development		403,001			395,557			342,335			331,454			410,918
		Construction and land development – LIHTC		1,016,207			917,986			913,841			750,894			738,609
		Multi-family		289,782			303,662			324,090			329,239			296,245
		Multi-family – LIHTC		888,517			828,448			973,682			1,148,244			1,007,321
		Direct financing leases		14,773			17,076			19,241			25,808			28,089
		1-4 family real estate		592,127			588,179			587,512			583,542			563,358
		Consumer		146,393			146,728			144,845			143,839			130,900
		Total loans/leases	$	6,823,167		$	6,784,404		$	6,828,802		$	6,854,386		$	6,648,336
		Less allowance for credit losses		90,354			89,841			86,321			87,706			84,470
		Net loans/leases	$	6,732,813		$	6,694,563		$	6,742,481		$	6,766,680		$	6,563,866


		ANALYSIS OF SECURITIES PORTFOLIO
		Securities mix:
		U.S. government sponsored agency securities	$	17,487		$	20,591		$	18,621		$	20,101		$	14,442
		Municipal securities		1,003,985			971,567			965,810			885,046			884,469
		Residential mortgage-backed and related securities		43,194			50,042			53,488			54,708			56,071
		Asset backed securities		7,764			9,224			10,455			12,721			14,285
		Other securities		66,105			65,745			39,190			38,464			40,539
		Trading securities (3)		82,445			83,529			58,685			22,362			22,258
		Total securities	$	1,220,980		$	1,200,698		$	1,146,249		$	1,033,402		$	1,032,064
		Less allowance for credit losses		263			263			203			203			203
		Net securities	$	1,220,717		$	1,200,435		$	1,146,046		$	1,033,199		$	1,031,861

		ANALYSIS OF DEPOSITS
		Deposit mix:
		Noninterest-bearing demand deposits	$	963,851		$	921,160		$	969,348		$	956,445		$	955,167
		Interest-bearing demand deposits		5,119,601			4,828,216			4,715,087			4,644,918			4,714,555
		Time deposits		951,606			953,496			942,847			859,593			875,491
		Brokered deposits		302,332			358,315			357,351			303,711			261,562
		Total deposits	$	7,337,390		$	7,061,187		$	6,984,633		$	6,764,667		$	6,806,775

		ANALYSIS OF BORROWINGS
		Borrowings mix:
		Term FHLB advances	$	145,383		$	145,383		$	145,383		$	135,000		$	135,000
		Overnight FHLB advances		–			140,000			230,000			350,000			70,000
		Other short-term borrowings		2,050			1,800			2,750			1,600			2,700
		Subordinated notes		233,595			233,489			233,383			233,276			233,170
		Junior subordinated debentures		48,893			48,860			48,828			48,795			48,763
		Total borrowings	$	429,921		$	569,532		$	660,344		$	768,671		$	489,633

(1	)	Loans with a fair value of $0 million, $0 million, $165.9 million, $243.2 million and $274.8 million have been identified for securitization and are included in LHFS at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024 and March 31, 2024, respectively.
(2	)	Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were $2.2 billion at March 31, 2025.
(3	)	Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company.

QCR Holding, Inc.
Consolidated Financial Highlights
(Unaudited)

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

	(dollars in thousands, except per share data)

INCOME STATEMENT
Interest income	$	116,673		$	121,642		$	125,420		$	119,746	$	115,049
Interest expense		56,687			60,438			65,698			63,583		60,350
Net interest income		59,986			61,204			59,722			56,163		54,699
Provision for credit losses		4,234			5,149			3,484			5,496		2,969
Net interest income after provision for credit losses	$	55,752		$	56,055		$	56,238		$	50,667	$	51,730


Trust fees (1)	$	3,686		$	3,456		$	3,270		$	3,103	$	3,199
Investment advisory and management fees (1)		1,254			1,320			1,229			1,214		1,101
Deposit service fees		2,183			2,228			2,294			1,986		2,022
Gains on sales of residential real estate loans, net		297			734			385			540		382
Gains on sales of government guaranteed portions of loans, net		61			49			–			12		24
Capital markets revenue		6,516			20,552			16,290			17,758		16,457
Earnings on bank-owned life insurance		524			797			814			2,964		868
Debit card fees		1,488			1,555			1,575			1,571		1,466
Correspondent banking fees		614			560			507			510		512
Loan related fee income		898			950			949			962		836
Fair value gain (loss) on derivatives and trading securities		(1,007	)		(1,781	)		(886	)		51		(163	)
Other		378			205			730			218		154
Total noninterest income	$	16,892		$	30,625		$	27,157		$	30,889	$	26,858


Salaries and employee benefits	$	27,364		$	33,610		$	31,637		$	31,079	$	31,860
Occupancy and equipment expense		6,455			6,354			6,168			6,377		6,514
Professional and data processing fees		5,144			5,480			4,457			4,823		4,613
Restructuring expense		–			–			1,954			–		–
FDIC insurance, other insurance and regulatory fees		1,970			1,934			1,711			1,854		1,945
Loan/lease expense		381			513			587			151		378
Net cost of (income from) and gains/losses on operations of other real estate		(9	)		23			(42	)		28		(30	)
Advertising and marketing		1,613			1,886			2,124			1,565		1,483
Communication and data connectivity		290			345			333			318		401
Supplies		207			252			278			259		275
Bank service charges		596			635			603			622		568
Correspondent banking expense		329			328			325			363		305
Intangibles amortization		661			691			690			690		690
Goodwill impairment		–			–			431			–		–
Payment card processing		594			516			785			706		646
Trust expense		357			381			395			379		425
Other		587			551			1,129			674		617
Total noninterest expense	$	46,539		$	53,499		$	53,565		$	49,888	$	50,690

Net income before income taxes	$	26,105		$	33,181		$	29,830		$	31,668	$	27,898
Federal and state income tax expense		308			2,956			2,045			2,554		1,172
Net income	$	25,797		$	30,225		$	27,785		$	29,114	$	26,726

Basic EPS	$	1.53		$	1.80		$	1.65		$	1.73	$	1.59
Diluted EPS	$	1.52		$	1.77		$	1.64		$	1.72	$	1.58


Weighted average common shares outstanding		16,900,785			16,871,652			16,846,200			16,814,814		16,783,348
Weighted average common and common equivalent shares outstanding		17,013,992			17,024,481			16,982,400			16,921,854		16,910,675

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

		QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)

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

			(dollars in thousands, except per share data)

		COMMON SHARE DATA
		Common shares outstanding		16,920,363			16,882,045			16,861,108			16,824,985			16,807,056
		Book value per common share (1)	$	60.44		$	59.08		$	57.92		$	55.65		$	53.99
		Tangible book value per common share (Non-GAAP) (2)	$	51.64		$	50.21		$	49.00		$	46.65		$	44.93
		Closing stock price	$	71.32		$	80.64		$	74.03		$	60.00		$	60.74
		Market capitalization	$	1,206,760		$	1,361,368		$	1,248,228		$	1,009,499		$	1,020,861
		Market price / book value		117.99	%		136.49	%		127.81	%		107.82	%		112.51	%
		Market price / tangible book value		138.11	%		160.59	%		151.07	%		128.62	%		135.18	%
		Earnings per common share (basic) LTM (3)	$	6.71		$	6.77		$	6.93		$	6.78		$	6.75
		Price earnings ratio LTM (3)	10.63 x			11.91 x			10.68 x			8.85 x			9.00 x
		TCE / TA (Non-GAAP) (4)		9.70	%		9.55	%		9.24	%		9.00	%		8.94	%


		CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY
		Beginning balance	$	997,387		$	976,620		$	936,319		$	907,342		$	886,596
		Net income		25,797			30,225			27,785			29,114			26,726
		Other comprehensive income (loss), net of tax		404			(9,628	)		12,057			(368	)		(5,373	)
		Common stock cash dividends declared		(1,015	)		(1,013	)		(1,012	)		(1,008	)		(1,008	)
		Other (5)		174			1,183			1,471			1,239			401
		Ending balance	$	1,022,747		$	997,387		$	976,620		$	936,319		$	907,342


		REGULATORY CAPITAL RATIOS (6):
		Total risk-based capital ratio		14.16	%		14.10	%		13.87	%		14.21	%		14.30	%
		Tier 1 risk-based capital ratio		10.79	%		10.57	%		10.33	%		10.49	%		10.50	%
		Tier 1 leverage capital ratio		11.06	%		10.73	%		10.50	%		10.40	%		10.33	%
		Common equity tier 1 ratio		10.26	%		10.03	%		9.79	%		9.92	%		9.91	%


		KEY PERFORMANCE RATIOS AND OTHER METRICS
		Return on average assets (annualized)		1.14	%		1.34	%		1.24	%		1.33	%		1.25	%
		Return on average total equity (annualized)		10.14	%		12.15	%		11.55	%		12.63	%		11.83	%
		Net interest margin		2.95	%		2.95	%		2.90	%		2.82	%		2.82	%
		Net interest margin (TEY) (Non-GAAP)(7)		3.42	%		3.43	%		3.37	%		3.27	%		3.25	%
		Efficiency ratio (Non-GAAP) (8)		60.54	%		58.26	%		61.65	%		57.31	%		62.15	%
		Gross loans/leases held for investment / total assets		74.53	%		75.14	%		73.30	%		74.48	%		74.11	%
		Gross loans/leases held for investment / total deposits		92.96	%		96.05	%		95.38	%		97.69	%		93.63	%
		Effective tax rate		1.18	%		8.91	%		6.86	%		8.06	%		4.20	%
		Full-time equivalent employees		972			980			976			988			986


		AVERAGE BALANCES
		Assets	$	9,015,439		$	9,050,280		$	8,968,653		$	8,776,002		$	8,550,855
		Loans/leases		6,790,312			6,839,153			6,840,527			6,779,075			6,598,614
		Deposits		7,146,286			7,109,567			6,858,196			6,687,188			6,595,453
		Total stockholders’ equity		1,017,487			995,012			962,302			921,986			903,371


(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	)	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.

QCR Holding, Inc.
Consolidated Financial Highlights
(Unaudited)


		ANALYSIS OF NET INTEREST INCOME AND MARGIN

			For the Quarter Ended
			March 31, 2025						December 31, 2024						March 31, 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	$	9,009	$	99	4.40	%	$	5,617	$	67	4.68	%	$	19,955	$	269	5.42	%
		Interest-bearing deposits at financial institutions		166,897		1,804	4.38	%		158,151		1,823	4.59	%		91,557		1,200	5.27	%
		Investment securities – taxable		400,779		4,588	4.59	%		375,552		4,230	4.49	%		373,540		4,261	4.55	%
		Investment securities – nontaxable (1)		843,476		11,722	5.57	%		829,544		12,286	5.92	%		685,969		9,349	5.45	%
		Restricted investment securities		30,562		534	6.99	%		33,173		608	7.17	%		38,085		674	7.00	%
		Loans (1)		6,790,312		107,439	6.42	%		6,839,153		112,325	6.53	%		6,598,614		107,673	6.56	%
		Total earning assets (1)	$	8,241,035	$	126,186	6.20	%	$	8,241,190	$	131,339	6.34	%	$	7,807,720	$	123,426	6.35	%

		Interest-bearing deposits	$	5,005,853	$	37,698	3.05	%	$	4,881,914	$	39,408	3.21	%	$	4,529,325	$	39,072	3.47	%
		Time deposits		1,204,593		12,690	4.27	%		1,248,412		13,868	4.42	%		1,107,622		12,345	4.48	%
		Short-term borrowings		1,839		18	3.97	%		1,862		22	4.67	%		1,763		23	5.16	%
		Federal Home Loan Bank advances		177,883		1,996	4.49	%		236,525		2,802	4.64	%		355,220		4,738	5.28	%
		Subordinated debentures		233,525		3,601	6.17	%		233,419		3,636	6.23	%		233,101		3,480	5.97	%
		Junior subordinated debentures		48,871		684	5.60	%		48,839		701	5.62	%		48,742		692	5.62	%
		Total interest-bearing liabilities	$	6,672,564	$	56,687	3.44	%	$	6,650,971	$	60,437	3.61	%	$	6,275,773	$	60,350	3.86	%

		Net interest income (1)			$	69,499					$	70,902					$	63,076
		Net interest margin (2)					2.95	%					2.95	%					2.82	%
		Net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.42	%					3.43	%					3.25	%
		Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.41	%					3.40	%					3.24	%
		Cost of funds (4)					3.02	%					3.15	%					3.35	%


(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 Holding, Inc. Consolidated Financial Highlights (Unaudited)

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

			(dollars in thousands, except per share data)

		ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES
		Beginning balance	$	89,841		$	86,321		$	87,706		$	84,470		$	87,200
		Change in ACL for transfer of loans to LHFS		–			93			(1,812	)		498			(3,377	)
		Credit loss expense		4,743			6,832			3,828			4,343			3,736
		Loans/leases charged off		(4,944	)		(4,787	)		(3,871	)		(1,751	)		(3,560	)
		Recoveries on loans/leases previously charged off		714			1,382			470			146			471
		Ending balance	$	90,354		$	89,841		$	86,321		$	87,706		$	84,470


		NONPERFORMING ASSETS
		Nonaccrual loans/leases	$	47,259		$	40,080		$	33,480		$	33,546		$	29,439
		Accruing loans/leases past due 90 days or more		356			4,270			1,298			87			142
		Total nonperforming loans/leases		47,615			44,350			34,778			33,633			29,581
		Other real estate owned		402			661			369			369			784
		Other repossessed assets		122			543			542			512			962
		Total nonperforming assets	$	48,139		$	45,554		$	35,689		$	34,514		$	31,327


		ASSET QUALITY RATIOS
		Nonperforming assets / total assets		0.53	%		0.50	%		0.39	%		0.39	%		0.36	%
		ACL for loans and leases / total loans/leases held for investment		1.32	%		1.32	%		1.30	%		1.33	%		1.33	%
		ACL for loans and leases / nonperforming loans/leases		189.76	%		202.57	%		248.21	%		260.77	%		285.55	%
		Net charge-offs as a % of average loans/leases		0.06	%		0.05	%		0.05	%		0.02	%		0.05	%



		INTERNALLY ASSIGNED RISK RATING (1)
		Special mention	$	55,327		$	73,636		$	80,121		$	85,096		$	111,729
		Substandard (2)		85,033			84,930			70,022			80,345			70,841
		Doubtful (2)		–			–			–			–			–
		Total Criticized loans (3)	$	140,360		$	158,566		$	150,143		$	165,441		$	182,570

		Classified loans as a % of total loans/leases (2)		1.25	%		1.25	%		1.03	%		1.17	%		1.07	%
		Total Criticized loans as a % of total loans/leases (3)		2.06	%		2.34	%		2.20	%		2.41	%		2.75	%

(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 Holding, Inc.
Consolidated Financial Highlights
(Unaudited)


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

		TOTAL ASSETS
		Quad City Bank and Trust (1)	$	2,777,634		$	2,588,587		$	2,618,727
		m2 Equipment Finance, LLC		276,096			310,915			350,801
		Cedar Rapids Bank and Trust		2,617,143			2,614,570			2,423,936
		Community State Bank		1,583,646			1,531,559			1,445,230
		Guaranty Bank		2,331,944			2,342,958			2,327,985

		TOTAL DEPOSITS
		Quad City Bank and Trust (1)	$	2,397,047		$	2,126,566		$	2,161,515
		Cedar Rapids Bank and Trust		1,883,952			1,882,487			1,757,353
		Community State Bank		1,238,307			1,256,938			1,187,926
		Guaranty Bank		1,840,774			1,824,139			1,743,514

		TOTAL LOANS & LEASES
		Quad City Bank and Trust (1)	$	2,041,181		$	2,048,926		$	2,046,038
		m2 Equipment Finance, LLC		284,983			320,237			354,815
		Cedar Rapids Bank and Trust		1,790,065			1,761,467			1,680,127
		Community State Bank		1,197,005			1,159,389			1,113,070
		Guaranty Bank		1,794,915			1,814,622			1,809,101

		TOTAL LOANS & LEASES / TOTAL DEPOSITS
		Quad City Bank and Trust (1)		85	%		96	%		95	%
		Cedar Rapids Bank and Trust		95	%		94	%		96	%
		Community State Bank		97	%		92	%		94	%
		Guaranty Bank		98	%		99	%		104	%


		TOTAL LOANS & LEASES / TOTAL ASSETS
		Quad City Bank and Trust (1)		73	%		79	%		78	%
		Cedar Rapids Bank and Trust		68	%		67	%		69	%
		Community State Bank		76	%		76	%		77	%
		Guaranty Bank		77	%		77	%		78	%

		ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT
		Quad City Bank and Trust (1)		1.44	%		1.49	%		1.40	%
		m2 Equipment Finance, LLC		4.37	%		4.22	%		3.75	%
		Cedar Rapids Bank and Trust		1.38	%		1.44	%		1.34	%
		Community State Bank		1.08	%		0.98	%		1.12	%
		Guaranty Bank		1.30	%		1.25	%		1.15	%

		RETURN ON AVERAGE ASSETS (ANNUALIZED)
		Quad City Bank and Trust (1)		1.31	%		1.09	%		0.79	%
		Cedar Rapids Bank and Trust		2.14	%		3.12	%		3.09	%
		Community State Bank		1.07	%		1.30	%		1.25	%
		Guaranty Bank		0.72	%		0.91	%		0.88	%

		NET INTEREST MARGIN PERCENTAGE (2)
		Quad City Bank and Trust (1)		3.45	%		3.53	%		3.31	%
		Cedar Rapids Bank and Trust		4.00	%		3.95	%		3.77	%
		Community State Bank		3.78	%		3.77	%		3.75	%
		Guaranty Bank (3)		3.05	%		3.18	%		2.98	%

		ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET
		INTEREST MARGIN, NET
		Cedar Rapids Bank and Trust	$	–		$	–		$	–
		Community State Bank		(1	)		(1	)		(1	)
		Guaranty Bank		218			504			396
		QCR Holdings, Inc. (4)		(33	)		(32	)		(32	)

(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 2.91% for the quarter ended March 31, 2025, 2.97% for the quarter ended December 31, 2024 and 2.91% for the quarter ended March 31, 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 Holding, Inc. Consolidated Financial Highlights (Unaudited)

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

		Stockholders’ equity (GAAP)	$	1,022,747		$	997,387		$	976,620		$	936,319		$	907,342
		Less: Intangible assets		148,995			149,657			150,347			151,468			152,158
		Tangible common equity (non-GAAP)	$	873,752		$	847,730		$	826,273		$	784,851		$	755,184

		Total assets (GAAP)	$	9,152,779		$	9,026,030		$	9,088,565		$	8,871,991		$	8,599,549
		Less: Intangible assets		148,995			149,657			150,347			151,468			152,158
		Tangible assets (non-GAAP)	$	9,003,784		$	8,876,373		$	8,938,218		$	8,720,523		$	8,447,391

		Tangible common equity to tangible assets ratio (non-GAAP)		9.70	%		9.55	%		9.24	%		9.00	%		8.94	%


(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 Holding, Inc. Consolidated Financial Highlights (Unaudited)

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

		Net income (GAAP)	$	25,797		$	30,225		$	27,785		$	29,114		$	26,726

		Less non-core items (post-tax) (2):
		Income:
		Fair value loss on derivatives, net		(156	)		(2,594	)		(542	)		(145	)		(144	)
		Total non-core income (non-GAAP)	$	(156	)	$	(2,594	)	$	(542	)	$	(145	)	$	(144	)

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


		Adjusted net income (non-GAAP) (1)	$	25,953		$	32,819		$	30,302		$	29,259		$	26,870

		ADJUSTED EARNINGS PER COMMON SHARE (1)

		Adjusted net income (non-GAAP) (from above)	$	25,953		$	32,819		$	30,302		$	29,259		$	26,870

		Weighted average common shares outstanding		16,900,785			16,871,652			16,846,200			16,814,814			16,783,348
		Weighted average common and common equivalent shares outstanding		17,013,992			17,024,481			16,982,400			16,921,854			16,910,675

		Adjusted earnings per common share (non-GAAP):
		Basic	$	1.54		$	1.95		$	1.80		$	1.74		$	1.60
		Diluted	$	1.53		$	1.93		$	1.78		$	1.73		$	1.59

		ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)

		Adjusted net income (non-GAAP) (from above)	$	25,953		$	32,819		$	30,302		$	29,259		$	26,870

		Average Assets	$	9,015,439		$	9,050,280		$	8,968,653		$	8,776,002		$	8,550,855

		Adjusted return on average assets (annualized) (non-GAAP)		1.15	%		1.45	%		1.35	%		1.33	%		1.26	%
		Adjusted return on average equity (annualized) (non-GAAP)		10.20	%		13.19	%		12.60	%		12.69	%		11.90	%

		NET INTEREST MARGIN (TEY) (3)

		Net interest income (GAAP)	$	59,986		$	61,204		$	59,722		$	56,163		$	54,699
		Plus: Tax equivalent adjustment (4)		9,513			9,698			9,544			8,914			8,377
		Net interest income – tax equivalent (Non-GAAP)	$	69,499		$	70,902		$	69,266		$	65,077		$	63,076
		Less: Acquisition accounting net accretion		184			471			463			268			363
		Adjusted net interest income	$	69,315		$	70,431		$	68,803		$	64,809		$	62,713

		Average earning assets	$	8,241,035		$	8,241,190		$	8,183,196		$	7,999,044		$	7,807,720

		Net interest margin (GAAP)		2.95	%		2.95	%		2.90	%		2.82	%		2.82	%
		Net interest margin (TEY) (Non-GAAP)		3.42	%		3.43	%		3.37	%		3.27	%		3.25	%
		Adjusted net interest margin (TEY) (Non-GAAP)		3.41	%		3.40	%		3.34	%		3.26	%		3.24	%

		EFFICIENCY RATIO (5)

		Noninterest expense (GAAP)	$	46,539		$	53,499		$	53,565		$	49,888		$	50,690

		Net interest income (GAAP)	$	59,986		$	61,204		$	59,722		$	56,163		$	54,699
		Noninterest income (GAAP)		16,892			30,625			27,157			30,889			26,858
		Total income	$	76,878		$	91,829		$	86,879		$	87,052		$	81,557

		Efficiency ratio (noninterest expense/total income) (Non-GAAP)		60.54	%		58.26	%		61.65	%		57.31	%		62.15	%
		Adjusted efficiency ratio (core noninterest expense/core total income) (Non-GAAP)		60.38	%		56.25	%		58.45	%		57.19	%		62.01	%

(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 –

April 23, 2025

MIL-OSI: Weatherford Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

First quarter revenue of $1,193 million decreased 12% year-over-year
First quarter operating income of $142 million decreased 39% year-over-year
First quarter net income of $76 million, a 6.4% margin, decreased 32% year-over-year
First quarter adjusted EBITDA* of $253 million, a 21.2% margin, decreased 25%, or 354 basis points, year-over-year
First quarter cash provided by operating activities of $142 million and adjusted free cash flow* of $66 million
Repurchased $34 million of 8.625% Senior Notes due 2030 in the first quarter of 2025
Shareholder return of $71 million for the quarter, which included dividend payments of $18 million and share repurchases of $53 million
Board approved quarterly cash dividend of $0.25 per share, payable on June 5, 2025, to shareholders of record as of May 6, 2025
As part of its portfolio optimization strategy, Weatherford completed the sale of its Pressure Pumping business in Argentina on April 1, 2025
Signed a strategic agreement with Abu Dhabi-based AIQ to bring transformative efficiency to energy production, leveraging advanced automation, data-driven insights, and the power of AI technology

_{*Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled}

HOUSTON, April 22, 2025 (GLOBE NEWSWIRE) — Weatherford International plc (NASDAQ: WFRD) (“Weatherford” or the “Company”) announced today its results for the first quarter of 2025.

Revenues for the first quarter of 2025 were $1,193 million, a decrease of 12% year-over-year and 11% sequentially. Operating income was $142 million in the first quarter of 2025, compared to $233 million in the first quarter of 2024 and $198 million in the fourth quarter of 2024. Net income in the first quarter of 2025 was $76 million, with a 6.4% margin, a decrease of 32%, or 188 basis points year-over-year and 32%, or 198 basis points, sequentially. Adjusted EBITDA* was $253 million, a 21.2% margin, a decrease of 25%, or 354 basis points, year-over-year and 22%, or 310 basis points, sequentially. Basic income per share in the first quarter of 2025 was $1.04, compared to $1.54 in the first quarter of 2024 and $1.54 in the fourth quarter of 2024. Diluted income per share in the first quarter of 2025 was $1.03, compared to $1.50 in the first quarter of 2024, and $1.50 in the fourth quarter of 2024.

First quarter 2025 cash flows provided by operating activities were $142 million, compared to $131 million in the first quarter of 2024, and $249 million in the fourth quarter of 2024. Adjusted free cash flow* was $66 million, a decrease of $16 million year-over-year and $96 million sequentially. Capital expenditures were $77 million in the first quarter of 2025, compared to $59 million in the first quarter of 2024, and $100 million in the fourth quarter of 2024.

Girish Saligram, President and Chief Executive Officer, commented, “The first quarter was marked by significant market softening across key geographies, especially Mexico, the United Kingdom and North America. This created headwinds for activity levels but the One Weatherford team continued to focus on the controllable elements of the business, driving execution to deliver results inline with expectations.

Over the past few weeks, the market conditions have skewed more negatively, as we continue to navigate uncertainty on customer activity levels stemming from macroeconomic factors, global trade and geopolitical tensions. However, our actions remain focused on our North Star of driving adjusted free cash flow and we are further accelerating efficiency and optimization programs to ensure that we are well positioned for any scenario that might unfold in the latter part of the year. We believe it to be prudent to scale back our expectations on activity levels through the rest of the year and are focused on minimizing decrementals and improving working capital efficiencies. Nonetheless, even at a significantly reduced level of customer activity, we remain confident in increasing our adjusted free cash flow conversion for the full year 2025, allowing progress on our capital allocation priorities.

The sale of our Pressure Pumping business in Argentina marks another key milestone in our portfolio optimization strategy to a more capital-efficient model and further builds liquidity to position us well for the upcoming period.”

_{*Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled}

Operational & Commercial Highlights

An International Oil Company (IOC) awarded Weatherford an eight-year contract extension to provide a comprehensive suite of services, including Intervention Services & Drilling Tools, Pipe Inspection, Managed Pressure Drilling (MPD), Tubular Running Services (TRS), Well Services, and Pipe Recovery in Kazakhstan.
PDO Oman awarded Weatherford a five-year Integrated Completions contract consisting of Completions, Liner Hangers and Cementation Products.
ADNOC Onshore awarded Weatherford a three-year contract for Well Services Production enhancement systems in the United Arab Emirates.
Eni Oman awarded Weatherford an open contract for onshore MPD services.
Petrobras awarded Weatherford a five-year contract for Liner Hangers systems and services in deepwater Brazil and amended its TRS contract, adding two Vero Mechanized Systems.
Sierracol Energy Andina LLC awarded Weatherford a six-month contract for Artificial Lift Systems in Colombia.
GeoPark Colombia S.A.S. awarded Weatherford a three-year contract for Wireline Open & Cased Hole Services.
Jadestone Energy (Malaysia) PTE LTD awarded Weatherford a contract for the Autonomous Inflow Control Device Screens and associated lower Completions equipment and services for the PM323 East Belumut Phase 9 Infill Drilling campaign.
Dragon Oil awarded Weatherford a three-year contract for Completions Equipment and Services in offshore Turkmenistan.
An IOC awarded Weatherford a one-year contract for Artificial Lift Equipment and Centro^® Well Construction Optimization Platform in Argentina.
An IOC in Turkey awarded Weatherford a five-year contract for Open Hole Wireline Tools.
An IOC awarded Weatherford a three-year contract for Artificial Lift Equipment in Australia.
A major integrated energy company awarded Weatherford a three-year, multi-rig contract for Vero^® Mechanized Systems in deepwater Gulf of America.
A National Oil Company (NOC) awarded Weatherford a two-year contract for Stage Tool Cementing Equipment in the Middle East.
An IOC awarded Weatherford a one-year contract for the SCADA Digital Platform in offshore United Arab Emirates.

Technology Highlights

Drilling & Evaluation (“DRE”)
- In the UK, Weatherford successfully delivered Logging While Drilling and Formation Pressure Services for Shell on a high-pressure, high temperature well. The well was drilled at 175°c and reached a total depth of 21,000 feet.
- In the Middle East, Weatherford successfully deployed GuideWave^® CLEAR in three wells for an NOC, enabling improved formation evaluation and more precise geo-steering.
Well Construction and Completions (“WCC”)
- In deepwater Brazil, Weatherford successfully installed the first OptiROSS^® RFID Multi-Cycle Sliding Sleeve Valve for Petrobras. This system enhances acid stimulation efficiency, improving production and boosting the reservoir’s oil recovery factor.
- In North America, Weatherford successfully completed 17 field trials of its SecureTrac™ technology with one of the largest multinational oil and gas companies. The tool’s more compact design enables a shorter shoe track, maximizing reservoir exposure and enhancing production potential.
- In the Middle East, Weatherford successfully deployed the first WidePak™ straddle solution for Gupco in Egypt. The well had been shut for 15 years due to a sustained tubing leak. Following Weatherford’s intervention, the well is now back online and delivering significant production.
Production and Intervention (“PRI”)
- In North America, Weatherford successfully deployed the ForeSite^® Regenerative Power for KODA, following a two-month pilot. The deployment delivered significant power savings, demonstrating the technology’s efficiency and value in the field.
- In North America, Weatherford deployed the ForeSite^® Power Regenerative variable-speed drive across key customers, following multiple successful pilots. The implementation delivered significant power savings and reduced carbon emissions. Due to its unique ability to recycle, store, and optimize power, this innovative solution helps control operating expenses for customers.

Shareholder Return

During the first quarter of 2025, Weatherford paid dividends of $18 million and repurchased shares for approximately $53 million, resulting in a total shareholder return of $71 million.

On April 17, 2025, our Board declared a cash dividend of $0.25 per share of the Company’s ordinary shares, payable on June 5, 2025, to shareholders of record as of May 6, 2025.

Results by Reportable Segment

Drilling and Evaluation (“DRE”)

	Three Months Ended									Variance
($ in Millions)	March 31, 2025			December 31, 2024			March 31, 2024			Seq.		YoY
Revenue	$	350		$	398		$	422		(12	)%	(17	)%
Segment Adjusted EBITDA	$	74		$	96		$	130		(23	)%	(43	)%
Segment Adj EBITDA Margin		21.1	%		24.1	%		30.8	%	(298	)bps	(966	)bps

First quarter 2025 DRE revenue of $350 million decreased by $72 million, or 17% year-over-year, primarily from lower Drilling-related services activity in Latin America, Europe/Sub-Sahara Africa/Russia and North America, partly offset by higher Drilling Services activity in Middle East/North Africa/Asia. Sequentially, DRE revenue decreased by $48 million, or 12%, primarily from lower international activity, especially in Latin America, partly offset by higher Wireline activity in North America.

First quarter 2025 DRE segment adjusted EBITDA of $74 million decreased by $56 million, or 43% year-over-year, primarily from lower activity, partly offset by higher Drilling Services activity in Middle East/North Africa/Asia. Sequentially, DRE segment adjusted EBITDA decreased by $22 million, or 23%, primarily from lower international activity, especially in Latin America, partly offset by higher Wireline activity in North America.

Well Construction and Completions (“WCC”)

	Three Months Ended									Variance
($ in Millions)	March 31, 2025			December 31, 2024			March 31, 2024			Seq.		YoY
Revenue	$	441		$	505		$	458		(13	)%	(4	)%
Segment Adjusted EBITDA	$	128		$	148		$	120		(14	)%	7	%
Segment Adj EBITDA Margin		29.0	%		29.3	%		26.2	%	(28)	bps	282	bps

First quarter 2025 WCC revenue of $441 million decreased by $17 million, or 4% year-over-year, primarily from lower activity in North America, Latin America and Europe/Sub-Sahara Africa/Russia, partly offset by higher activity in Middle East/North Africa/Asia. Sequentially, WCC revenues decreased by $64 million, or 13%, primarily from lower activity across all geographies.

First quarter 2025 WCC segment adjusted EBITDA of $128 million increased by $8 million, or 7% year-over-year, primarily from higher activity and fall through in Middle East/North Africa/Asia, partly offset by lower activity in North America, Latin America and Europe/Sub-Sahara Africa/Russia. Sequentially, WCC segment adjusted EBITDA decreased by $20 million, or 14%, primarily from lower activity across all geographies.

Production and Intervention (“PRI”)

	Three Months Ended									Variance
($ in Millions)	March 31, 2025			December 31, 2024			March 31, 2024			Seq.		YoY
Revenue	$	334		$	364		$	348		(8	)%	(4	)%
Segment Adjusted EBITDA	$	62		$	78		$	73		(21	)%	(15	)%
Segment Adj EBITDA Margin		18.6	%		21.4	%		21.0	%	(287	)bps	(241	)bps

First quarter 2025 PRI revenue of $334 million decreased by $14 million, or 4% year-over-year, as lower international activity was partly offset by higher activity in North America. Sequentially, PRI revenue decreased by $30 million, or 8%, primarily from lower Artificial Lift activity.

First quarter 2025 PRI segment adjusted EBITDA of $62 million decreased by $11 million, or 15% year-over-year, primarily from lower international activity, partly offset by higher fall through in North America. Sequentially, PRI segment adjusted EBITDA decreased by $16 million, or 21%, primarily from lower Artificial Lift activity, partly offset by higher fall through from Digital Solutions in North America.

Revenue by Geography

	Three Months Ended						Variance
*($ in Millions)*	March 31, 2025		December 31, 2024		March 31, 2024		Seq.		YoY
North America	$	250	$	261	$	267	(4	)%	(6)	%

International	$	943	$	1,080	$	1,091	(13	)%	(14	)%
Latin America		241		312		370	(23	)%	(35	)%
Middle East/North Africa/Asia		503		542		497	(7	)%	1	%
Europe/Sub-Sahara Africa/Russia		199		226		224	(12	)%	(11	)%
Total Revenue	$	1,193	$	1,341	$	1,358	(11	)%	(12	)%

North America

First quarter 2025 North America revenue of $250 million decreased by $17 million, or 6% year-over-year, primarily from lower activity in DRE and WCC segments, partly offset by higher activity in PRI segment led by Pressure Pumping and Digital Solutions. Sequentially, North America decreased by $11 million, or 4%, primarily from lower US land and US offshore activity, partly offset by higher Wireline activity.

International

First quarter 2025 international revenue of $943 million decreased 14% year-over-year and decreased 13% sequentially.

First quarter 2025 Latin America revenue of $241 million decreased by $129 million, or 35% year-over-year, primarily from lower activity in Mexico, partly offset by MPD and Pressure Pumping activity. Sequentially, Latin America revenue decreased by $71 million, or 23%, primarily from lower activity in Mexico, partly offset by higher MPD and Completions activity.

First quarter 2025 Middle East/North Africa/Asia revenue of $503 million increased by $6 million, or 1% year-over-year, as higher activity from Completions and Drilling Services were partly offset by lower MPD and Integrated Services & Projects activity. Sequentially, the Middle East/North Africa/Asia revenue decreased by $39 million, or 7%, primarily from lower activity in all the segments, partly offset by higher Integrated Services & Projects and MPD activity.

First quarter 2025 Europe/Sub-Sahara Africa/Russia revenue of $199 million decreased by $25 million, or 11% year-over-year, primarily from lower activity across all the segments, partly offset by higher Well Services and MPD activity. Sequentially, Europe/Sub-Sahara Africa/Russia revenue decreased by $27 million, or 12%, primarily from lower activity across all the segments, partly offset by higher activity in Drilling Services.

About Weatherford
Weatherford delivers innovative energy services that integrate proven technologies with advanced digitalization to create sustainable offerings for maximized value and return on investment. Our world-class experts partner with customers to optimize their resources and realize the full potential of their assets. Operators choose us for strategic solutions that add efficiency, flexibility, and responsibility to any energy operation. The Company conducts business in approximately 75 countries and has approximately 18,000 team members representing more than 110 nationalities and 320 operating locations. Visit weatherford.com for more information and connect with us on social media.

Conference Call Details

Weatherford will host a conference call on Wednesday, April 23, 2025, to discuss the Company’s results for the first quarter ended March 31, 2025. The conference call will begin at 8:30 a.m. Eastern Time (7:30 a.m. Central Time).

Listeners are encouraged to download the accompanying presentation slides which will be available in the investor relations section of the Company’s website.

Listeners can participate in the conference call via a live webcast at https://www.weatherford.com/investor-relations/investor-news-and-events/events/ or by dialing +1 877-328-5344 (within the U.S.) or +1 412-902-6762 (outside of the U.S.) and asking for the Weatherford conference call. Participants should log in or dial in approximately 10 minutes prior to the start of the call.

A telephonic replay of the conference call will be available until May 7, 2025, at 5:00 p.m. Eastern Time. To access the replay, please dial +1 877-344-7529 (within the U.S.) or +1 412-317-0088 (outside of the U.S.) and reference conference number 6907941. A replay and transcript of the earnings call will also be available in the investor relations section of the Company’s website.

Contacts
For Investors:
Luke Lemoine
Senior Vice President, Corporate Development & Investor Relations
+1 713-836-7777
investor.relations@weatherford.com

For Media:
Kelley Hughes
Senior Director, Communications & Employee Engagement
media@weatherford.com

Forward-Looking Statements

This news release contains projections and forward-looking statements concerning, among other things, the Company’s quarterly adjusted EBITDA*, adjusted EBITDA margin*, adjusted free cash flow*, net leverage*, shareholder return program, forecasts or expectations regarding business outlook, prospects for its operations, capital expenditures, expectations regarding future financial results, and are also generally identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “outlook,” “budget,” “intend,” “strategy,” “plan,” “guidance,” “may,” “should,” “could,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions, although not all forward-looking statements contain these identifying words. Such statements are based upon the current beliefs of Weatherford’s management and are subject to significant risks, assumptions, and uncertainties. Should one or more of these risks or uncertainties materialize, or underlying assumptions prove incorrect, actual results may vary materially from those indicated in our forward-looking statements. Readers are cautioned that forward-looking statements are only estimates and may differ materially from actual future events or results, based on factors including but not limited to: global political, economic and market conditions, political disturbances, war or other global conflicts, terrorist attacks, changes in global trade policies, tariffs and sanctions, weak local economic conditions and international currency fluctuations; general global economic repercussions related to U.S. and global inflationary pressures and potential recessionary concerns; various effects from conflicts in the Middle East and the Russia Ukraine conflicts, including, but not limited to, nationalization of assets, extended business interruptions, sanctions, treaties and regulations (including changes in the regulatory environment) imposed by various countries, associated operational and logistical challenges, and impacts to the overall global energy supply; cybersecurity issues; our ability to comply with, and respond to, climate change, environmental, social and governance and other sustainability initiatives and future legislative and regulatory measures both globally and in specific geographic regions; the potential for a resurgence of a pandemic in a given geographic area and related disruptions to our business, employees, customers, suppliers and other partners; the price and price volatility of, and demand for, oil and natural gas; the macroeconomic outlook for the oil and gas industry; our ability to generate cash flow from operations to fund our operations; our ability to effectively and timely adapt our technology portfolio, products and services to remain competitive, and to address and participate in changes to the market demands, including for the transition to alternate sources of energy such as geothermal, carbon capture and responsible abandonment, including our digitalization efforts; our ability to effectively execute our capital allocation framework; our ability to return capital to shareholders, including those related to the timing and amounts (including any plans or commitments in respect thereof) of any dividends and share repurchases; and the realization of additional cost savings and operational efficiencies.

These risks and uncertainties are more fully described in Weatherford’s reports and registration statements filed with the Securities and Exchange Commission, including the risk factors described in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Accordingly, you should not place undue reliance on any of the Company’s forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.

_{*Non-GAAP – refer to the section titled Non-GAAP Financial Measures Defined and GAAP to Non-GAAP Financial Measures Reconciled}

Weatherford International plc
Selected Statements of Operations (Unaudited)

	Three Months Ended
*($ in Millions, Except Per Share Amounts)*	March 31, 2025			December 31, 2024			March 31, 2024
Revenues:
DRE Revenues	$	350		$	398		$	422
WCC Revenues		441			505			458
PRI Revenues		334			364			348
All Other		68			74			130
Total Revenues		1,193			1,341			1,358

Operating Income:
DRE Segment Adjusted EBITDA^[1]	$	74		$	96		$	130
WCC Segment Adjusted EBITDA^[1]		128			148			120
PRI Segment Adjusted EBITDA^[1]		62			78			73
All Other^[2]		4			11			27
Corporate^[2]		(15	)		(7	)		(14	)
Depreciation and Amortization		(62	)		(83	)		(85	)
Share-based Compensation		(7	)		(10	)		(13	)
Restructuring Charges		(29	)		(34	)		(3	)
Other Charges, Net		(13	)		(1	)		(2	)
Operating Income		142			198			233

Other Expense:
Interest Expense, Net of Interest Income of $11, $12, and $14		(26	)		(25	)		(29	)
Other Expense, Net		(20	)		(4	)		(22	)
Income Before Income Taxes		96			169			182
Income Tax Provision		(10	)		(45	)		(59	)
Net Income		86			124			123
Net Income Attributable to Noncontrolling Interests		10			12			11
Net Income Attributable to Weatherford	$	76		$	112		$	112

Basic Income Per Share	$	1.04		$	1.54		$	1.54
Basic Weighted Average Shares Outstanding		73.1			72.6			72.9

Diluted Income Per Share	$	1.03		$	1.50		$	1.50
Diluted Weighted Average Shares Outstanding		73.4			74.5			74.7

^[1]	^{Segment adjusted EBITDA is our primary measure of segment profitability under U.S. GAAP ASC 280 “Segment Reporting” and represents segment earnings before interest, taxes, depreciation, amortization, share-based compensation, restructuring charges and other adjustments. Research and development expenses are included in segment adjusted EBITDA.}
^[2]	^{All Other includes results from non-core business activities (including integrated services and projects), and Corporate includes overhead support and centrally managed or shared facilities costs. All Other and Corporate do not individually meet the criteria for segment reporting.}

Weatherford International plc
Selected Balance Sheet Data (Unaudited)

*($ in Millions)*	March 31, 2025		December 31, 2024
Assets:
Cash and Cash Equivalents	$	873	$	916
Restricted Cash		57		59
Accounts Receivable, Net		1,175		1,261
Inventories, Net		889		880
Property, Plant and Equipment, Net		1,103		1,061
Intangibles, Net		315		325

Liabilities:
Accounts Payable		714		792
Accrued Salaries and Benefits		249		302
Current Portion of Long-term Debt		22		17
Long-term Debt		1,583		1,617

Shareholders’ Equity:
Total Shareholders’ Equity		1,360		1,283

Weatherford International plc
Selected Cash Flows Information (Unaudited)

	Three Months Ended
*($ in Millions)*	March 31, 2025			December 31, 2024			March 31, 2024
Cash Flows From Operating Activities:
Net Income	$	86		$	124		$	123
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation and Amortization		62			83			85
Foreign Exchange Losses (Gain)		13			(2	)		15
Gain on Disposition of Assets		(1	)		(2	)		(7	)
Deferred Income Tax Provision		7			—			14
Share-Based Compensation		7			10			13
Changes in Accounts Receivable, Inventory, Accounts Payable and Accrued Salaries and Benefits		(17	)		24			(152	)
Other Changes, Net		(15	)		12			40
Net Cash Provided By Operating Activities		142			249			131

Cash Flows From Investing Activities:
Capital Expenditures for Property, Plant and Equipment		(77	)		(100	)		(59	)
Proceeds from Disposition of Assets		1			13			10
Business Acquisitions, Net of Cash Acquired		—			—			(36	)
Proceeds from Sale of Investments		—			—			41
Other Investing Activities		(3	)		1			(10	)
Net Cash Used In Investing Activities		(79	)		(86	)		(54	)

Cash Flows From Financing Activities:
Repayments of Long-term Debt		(39	)		(23	)		(172	)
Distributions to Noncontrolling Interests		—			(20	)		—
Tax Remittance on Equity Awards		(20	)		(22	)		(8	)
Share Repurchases		(53	)		(49	)		—
Dividends Paid		(18	)		(18	)		—
Other Financing Activities		(3	)		(1	)		(7	)
Net Cash Used In Financing Activities	$	(133	)	$	(133	)	$	(187	)

Weatherford International plc

Non-GAAP Financial Measures Defined (Unaudited)

We report our financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, Weatherford’s management believes that certain non-GAAP financial measures (as defined under the SEC’s Regulation G and Item 10(e) of Regulation S-K) may provide users of this financial information additional meaningful comparisons between current results and results of prior periods and comparisons with peer companies. The non-GAAP amounts shown in the following tables should not be considered as substitutes for results reported in accordance with GAAP but should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

Adjusted EBITDA* – Adjusted EBITDA* is a non-GAAP measure and represents consolidated income before interest expense, net, income taxes, depreciation and amortization expense, and excludes, among other items, restructuring charges, share-based compensation expense, as well as other charges and credits. Management believes adjusted EBITDA* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA* should be considered in addition to, but not as a substitute for consolidated net income and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

Adjusted EBITDA margin* – Adjusted EBITDA margin* is a non-GAAP measure which is calculated by dividing consolidated adjusted EBITDA* by consolidated revenues. Management believes adjusted EBITDA margin* is useful to assess and understand normalized operating performance and trends. Adjusted EBITDA margin* should be considered in addition to, but not as a substitute for consolidated net income margin and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

Adjusted Free Cash Flow* – Adjusted Free Cash Flow* is a non-GAAP measure and represents cash flows provided by (used in) operating activities, less capital expenditures plus proceeds from the disposition of assets. Management believes adjusted free cash flow* is useful to understand our performance at generating cash and demonstrates our discipline around the use of cash. Adjusted free cash flow* should be considered in addition to, but not as a substitute for cash flows provided by operating activities and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

Net Debt* – Net Debt* is a non-GAAP measure that is calculated taking short and long-term debt less cash and cash equivalents and restricted cash. Management believes the net debt* is useful to assess the level of debt in excess of cash and cash and equivalents as we monitor our ability to repay and service our debt. Net debt* should be considered in addition to, but not as a substitute for overall debt and total cash and should be viewed in addition to the Company’s results prepared in accordance with GAAP.

Net Leverage* – Net Leverage* is a non-GAAP measure which is calculated by dividing by taking net debt* divided by adjusted EBITDA* for the trailing 12 months. Management believes the net leverage* is useful to understand our ability to repay and service our debt. Net leverage* should be considered in addition to, but not as a substitute for the individual components of above defined net debt* divided by consolidated net income attributable to Weatherford and should be viewed in addition to the Company’s reported results prepared in accordance with GAAP.

_{*Non-GAAP – as defined above and reconciled to the GAAP measures in the section titled GAAP to Non-GAAP Financial Measures Reconciled}

Weatherford International plc
GAAP to Non-GAAP Financial Measures Reconciled (Unaudited)


	Three Months Ended
*($ in Millions, Except Margin in Percentages)*	March 31, 2025			December 31, 2024			March 31, 2024
Revenues	$	1,193		$	1,341		$	1,358
Net Income Attributable to Weatherford	$	76		$	112		$	112
Net Income Margin		6.4	%		8.4	%		8.2	%
Adjusted EBITDA*	$	253		$	326		$	336
Adjusted EBITDA Margin*		21.2	%		24.3	%		24.7	%

Net Income Attributable to Weatherford	$	76		$	112		$	112
Net Income Attributable to Noncontrolling Interests		10			12			11
Income Tax Provision		10			45			59
Interest Expense, Net of Interest Income of $11, $12, and $14		26			25			29
Other Expense, Net		20			4			22
Operating Income		142			198			233
Depreciation and Amortization		62			83			85
Other Charges, Net^[1]		13			1			2
Restructuring Charges		29			34			3
Share-Based Compensation		7			10			13
Adjusted EBITDA*	$	253		$	326		$	336

Net Cash Provided By Operating Activities	$	142		$	249		$	131
Capital Expenditures for Property, Plant and Equipment		(77	)		(100	)		(59	)
Proceeds from Disposition of Assets		1			13			10
Adjusted Free Cash Flow*	$	66		$	162		$	82

^[1]	^{Other Charges, Net in the three months ended March 31, 2025 primarily includes fees to third-party financial institutions related to collections of certain receivables from our largest customer in Mexico.}

_{*Non-GAAP – as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined}

Weatherford International plc
GAAP to Non-GAAP Financial Measures Reconciled Continued (Unaudited)



*($ in Millions)*	March 31, 2025			December 31, 2024			March 31, 2024
Current Portion of Long-term Debt	$	22		$	17		$	101
Long-term Debt		1,583			1,617			1,629
Total Debt	$	1,605		$	1,634		$	1,730

Cash and Cash Equivalents	$	873		$	916		$	824
Restricted Cash		57			59			113
Total Cash	$	930		$	975		$	937

Components of Net Debt
Current Portion of Long-term Debt	$	22		$	17		$	101
Long-term Debt		1,583			1,617			1,629
Less: Cash and Cash Equivalents		873			916			824
Less: Restricted Cash		57			59			113
Net Debt*	$	675		$	659		$	793

Net Income for trailing 12 months	$	470		$	506		$	457
*Adjusted EBITDA for trailing 12 months**	$	1,299		$	1,382		$	1,253

*Net Leverage (Net Debt/Adjusted EBITDA)**		0.52	x		0.48	x		0.63	x

_{*Non-GAAP – as reconciled to the GAAP measures above and defined in the section titled Non-GAAP Financial Measures Defined}

The MIL Network –

April 23, 2025

MIL-OSI United Nations: Committee on the Elimination of Racial Discrimination Opens One Hundred and Fifteenth Session in Geneva

Source: United Nations – Geneva

The Committee on the Elimination of Racial Discrimination this morning opened its one hundred and fifteenth session in Geneva, during which it will review anti-discrimination efforts by Gabon, Kyrgyzstan, Mauritius, Republic of Korea and Ukraine under the International Convention on the Elimination of All Forms of Racial Discrimination. The Committee heard from a representative of the United Nations Secretary-General and adopted the session’s agenda.

Antti Korkeakivi, Chief, Human Rights Treaties Branch, United Nations Office of the High Commissioner for Human Rights, and representative of the Secretary-General, opening the one hundred and fifteenth session, paid tribute to the important work of the Committee in promoting and protecting the human rights of all people without discrimination. With the Convention marking its sixtieth anniversary this year, it was an opportunity to explore avenues to generate greater political will and concrete action to fight racial discrimination.

Mr. Korkeakivi said a heavy programme of work was before the Committee over the next three weeks, with five major State party reviews; the consideration of five follow-up reports for Croatia, Germany, Morocco, Tajikistan and Uruguay; a half-day of general discussion on reparations for the injustices from the transatlantic trade of enslaved Africans, which would inform a new general recommendation on the topic; consideration of cases under the early warning and urgent action and individual complaints procedures; and meetings with various stakeholders. He wished the Committee a fruitful and productive session.

Michal Balcerzak, Committee Chairperson, congratulated Mr. Korkeakivi on assuming his position, and expressed hope that he could help navigate the treaty body system through the stormy weather it was currently facing. Mr. Balcerzak also said he hoped that, during the session, the Committee would have fruitful interactive dialogues with Ukraine, Mauritius, the Republic of Korea, Gabon and Kyrgyzstan. He thanked the members of the Committee’s secretariat for their help in facilitating Committee Experts’ work during and between sessions.

The programme of work and other documents related to the Committee’s one hundred and fifteenth session can be found here. Summaries of the public meetings of the Committee can be found here, while webcasts of the public meetings can be found here.

The Committee will next meet in public on Wednesday, 23 April at 3 p.m. to consider the combined twenty-fourth to twenty-sixth periodic reports of Ukraine (CERD/C/UKR/24-26).

Statements

ANTTI KORKEAKIVI, Chief, Human Rights Treaties Branch, United Nations Office of the High Commissioner for Human Rights, and representative of the Secretary-General, opening the one hundred and fifteenth session, said the international system was going through a tectonic shift, and the human rights edifice that was built up so painstakingly over decades had never been under so much strain. Everyone needed to make an all-out effort to ensure that human rights and the rule of law remained foundational to communities, societies and international relations. Otherwise, the picture would be very dangerous.

The Secretary-General, in his message on the International Day for the Elimination of Racial Discrimination, warned that “The poison of racism continues to infect our world – a toxic legacy of historic enslavement, colonialism and discrimination. It corrupts communities, blocks opportunities, and ruins lives, eroding the very foundations of dignity, equality and justice. Forged amidst the civil rights, anti-apartheid, and decolonisation movements of the 1960s, the Convention sets out concrete steps countries must take to combat racist doctrines, promote understanding, and build a world free from racial discrimination. Today, it remains a beacon of hope to guide us in dark times.”

Mr. Korkeakivi paid tribute to the important work of the Committee to monitor the implementation of the Convention and its significant contributions in promoting and protecting the human rights of all people without discrimination. With the Convention marking its sixtieth anniversary this year, it was an opportunity to explore avenues to generate greater political will and concrete action to fight racial discrimination.

In this connection, several events were held to commemorate the International Day for the Elimination of Racial Discrimination and the sixtieth anniversary. The Committee Chair, Mr. Balcerzak, participated in person in commemorative events at the United Nations General Assembly and the Human Rights Council, presenting a joint statement led by the Committee together with 10 other mechanisms. The Office of the High Commissioner would continue to support the Committee in its objectives for the yearlong anniversary campaign. It had created a website on the anniversary, which presented a list of commemorative activities that would be updated throughout the year.

The High Commissioner’s annual report on the rights of persons belonging to national or ethnic, religious and linguistic minorities, presented to the fifty-eighth session of the Human Rights Council last month, extensively referenced the Committee’s assessment of the realisation of minority rights and acknowledged the important contribution made by the Committee in advancing the adoption of comprehensive anti-discrimination legislation worldwide. Last December, the United Nations Network on Racial Discrimination and Protection of Minorities organised a community-of-practice on the Committee’s general recommendation 37 to discuss how countries could use it to eliminate racial discrimination in the context of health.

Further, the Expert Mechanism on the Rights of Indigenous Peoples, in its 2024 study on mechanisms to achieve the United National Declaration on the Rights of Indigenous Peoples, underscored the relevance of the Committee’s jurisprudence in protecting the political and cultural rights of indigenous peoples. The study highlighted how the Committee’s work reinforced the principles of the Declaration and strengthened the role of international treaty bodies in holding States accountable for respecting the collective rights of indigenous peoples.

In December 2024, the General Assembly proclaimed 2025-2034 as the Second International Decade for People of African Descent, with the theme “People of African descent: recognition, justice and development”. The Office of the High Commissioner had continued consultations to inform the implementation of its agenda towards transformative change for racial justice and equality.

The session of the Working Group of Experts on People of African Descent in December 2024 also focused on reparatory justice. Their report would be presented at the Human Rights Council session in September 2025. The Working Group organised yesterday a panel to commemorate the sixtieth anniversary of the Convention. Also, in December 2024, the Permanent Forum on People of African Descent held its first regional consultation on the draft United Nations Declaration on the Human Rights of People of African Descent in Barbados. The fourth session of the Permanent Forum held last week focused on “Africa and people of African descent: United for reparatory justice in the age of Artificial Intelligence”.

Additionally, the International Independent Expert Mechanism to Advance Racial Justice and Equality in Law Enforcement would hold its fourth session from 5 to 9 May 2025 in Geneva. It would discuss “addressing systemic racism against Africans and people of African descent in the criminal justice system” in preparation of its thematic report on the same topic.

In March 2025, the Office of the High Commissioner organised a regional consultation for Europe on racism in sports in Belgium. The second consultation for the Latin American region would take place in Mexico. The outcomes of these regional consultations would inform the High Commissioner’s report on a world of sport free from racism, racial discrimination, xenophobia, and related intolerance, to be presented at the Human Rights Council’s September session.

The fifteenth session of the Ad Hoc Committee on the elaboration of complementary standards to the Convention was continuing efforts to elaborate an additional protocol to the Convention aiming at criminalising acts of a racist and xenophobic nature. This session would focus on concrete provisions related to the prohibition and criminalisation of such acts, procedural guarantees for indicted persons and the protection of victims. The session also included a commemoration of the sixtieth anniversary of the Convention.

The Special Rapporteur on contemporary forms of racism, racial discrimination, xenophobia and related intolerance would present two thematic reports on intersectionality from a racial justice perspective, and combatting the glorification of Nazism, as well as a report on her country visit to Brazil, at the fifty-ninth session of the Human Rights Council in June 2025.

The past year had been particularly challenging for the treaty body system. In addition to chronic resource constraints, the liquidity crisis continued to hamper the planning and implementation of the Committee’s work. The Office was doing its utmost to ensure that this Committee and other treaty bodies could implement their mandates, including by highlighting the direct impact that resource limitations had on human rights protection on the ground. Nevertheless, all indications pointed to a continuation of the difficult liquidity situation for the foreseeable future. While all treaty bodies had been able to hold their first sessions, the outlook for the rest of the year remained uncertain, both in terms of plenary meeting and visits. The Office would inform the Committee when it received information regarding its second session for the year.

Despite these challenges, the treaty body strengthening process remained active. It reached a key moment with the adoption in December of last year of the biennial resolution on the treaty body system by the General Assembly, which invited the treaty bodies and the Office to continue to work toward a regularised schedule for reporting and to further use digital technologies. However, the biennial resolution did not endorse the proposal for an eight-year predictable schedule of reviews.

In concluding remarks, Mr. Korkeakivi said a heavy programme of work was before the Committee over the next three weeks, with five major State party reviews; the consideration of five follow-up reports for Croatia, Germany, Morocco, Tajikistan and Uruguay; a half-day of general discussion on reparations for the injustices from the transatlantic trade of enslaved Africans, and the ongoing crimes against people of African descent, which would inform a new general recommendation on the topic; consideration of cases under the early warning and urgent action and individual complaints procedures; and meetings with various stakeholders. He wished the Committee a fruitful and productive session.

MICHAL BALCERZAK, Committee Chairperson, congratulated Mr. Korkeakivi on assuming his position. The Committee hoped that he could achieve his mandate and navigate the treaty body system through the stormy weather it was currently facing. Mr. Balcerzak expressed hope that, during the session, the Committee would have fruitful interactive dialogues with Ukraine, Mauritius, the Republic of Korea, Gabon and Kyrgyzstan. He thanked the members of the Committee’s secretariat for its help facilitating Committee Experts’ work during and between sessions.

NOUREDDIN AMIR, Committee Expert, said that he had been fighting all forms of racial discrimination for half a century, including as the Committee’s former Chair. Despite his failing eyesight, he would continue to breathe life to the Committee’s struggle against racial discrimination. The world was in a sorry state, Mr. Amir said. The Committee needed to ensure that the international community was fully cognisant of what was happening in the world today. Murders were being committed in Palestine, in Gaza. What could the Committee do to put an end to these crimes against women and children. This situation beggared belief, yet it continued. People needed to be held accountable. The Committee had a responsibility to continue to fight for its mandate.

___________

Produced by the United Nations Information Service in Geneva for use of the media;
not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

CERD25.001E

MIL OSI United Nations News –

April 23, 2025

MIL-OSI Europe: Answer to a written question – The extension of the EU school scheme to eastern European countries with candidate status – E-000374/2025(ASW)

Source: European Parliament

Nutrition was identified by Member States as a key aspect of the Council Conclusions on stepping up Team Europe’s support to global food security and nutrition of 16 December 2024[1].

Three months after their adoption, the Nutrition for Growth (N4G) Summit in Paris in March 2025 was the first international event to showcase the EU’s achievements in this field.

In November 2024, the Government of Ukraine hosted the European Regional School Meals Summit, with the support of First Lady Olena Zelenska. Its organiser, the School Meals Coalition hosted events at the N4G Summit to ensure nutritious school meals for every child.

The EU school scheme is part of the common agricultural policy under the provisions of the regulation establishing a common organisation of the markets in agricultural products[2]. As such, it is available only for Member States.

In the enlargement process, the Commission explained the EU-supported school scheme to the Republic of Moldova and Ukraine as part of the screening process in the field of agriculture and rural development.

The agriculture ministries of Moldova and Ukraine are starting their preparations to meet the requirements for a future participation in the scheme.

These include a multi-annual strategy, and provisions for the management, monitoring and evaluation of an EU-compliant school scheme.

Both Moldova and Ukraine already have national schemes focused on better nutrition in schools, which are supported by the national budgets and for Ukraine by donors, including the EU and the World Food Programme.

[1] https://data.consilium.europa.eu/doc/document/ST-16901-2024-INIT/en/pdf
[2] OJ L 347, 20.12.2013, p. 671-854.

Last updated: 22 April 2025

MIL OSI Europe News –

April 23, 2025

MIL-OSI Video: Pope Francis, Mother Earth Day & other topics – Daily Press Briefing (22 April 2025)

Source: United Nations (Video News)

Noon Briefing by Stéphane Dujarric, Spokesperson for the Secretary-General.

Highlights:
Pope Francis
Mother Earth Day
Senior Personnel Appointment
Occupied Palestinian Territory
Haiti
Colombia
Bolivia
Ukraine
Good Defeats Evil

POPE
The Secretary-General intends to travel to Rome to attend the funeral of Pope Francis. When we have more details we will share them.

MOTHER EARTH DAY
Today is International Mother Earth Day. In his message, the Secretary-General said Mother Earth is running a fever with last year being the hottest ever on record.
We know what’s causing this sickness, he said, referring to the greenhouse gas emissions humanity is pumping into the atmosphere, but we also know the cure. All countries must create new climate action plans that align with limiting global temperature rise to 1.5 degrees Celsius – it is essential to avoid the worst of climate catastrophe, he said.
And as a reminder, tomorrow the Secretary-General, together with President Lula of Brazil, will convene a group of Heads of State and Government for a virtual closed-door meeting to discuss strengthening global efforts to tackle the climate crisis and accelerate a just energy transition. The Secretary-General is expected to deliver some remarks on climate to you at the Security Council stakeout after the meeting. We’ll share more details as we have them.
And what better way to celebrate Mother Earth Day than with a fashion show. We are unveiling a new tour guide uniform collection this evening at 6:15 p.m. during a fashion show in the Sputnik area of the Visitor’s Lobby. This is a collaboration between the Government of Sweden, the UN Office for Partnerships, the UN Department of Global Communications, and students from the Swedish School of Textiles at the University of Borås. This partnership reflects a shared commitment to sustainable lifestyle, fashion and innovation. Designed with natural fibers, renewable materials, and low-impact production methods, the uniforms embody a fusion of creativity, inclusivity, and environmental responsibility. We look forward to seeing our tour guides in their new uniforms, they have the toughest job in the building.

SENIOR PERSONNEL APPOINTMENT
The Secretary-General is appointing of Ian Martin of the United Kingdom as Head of the Strategic Assessment, as part of his UN80 initiative, of the United Nations Relief and Works Agency for Palestine Refugees, that you all know as UNRWA.
The Secretary-General is tasking Mr. Martin with conducting the Strategic Assessment in order to review UNRWA’s impact; implementation of its mandate under present political, financial, security and other constraints; and, consequences and risks for Palestine Refugees.
As you all know, Ian Martin has had a distinguished service within the United Nations. He was involved in a number of strategic reviews, most recently as the Lead of the Independent Strategic Review of the UN Mission in Somalia and before then as a member of the
High-Level Independent Panel on Peace Operations. We will share that announcement with you.

OCCUPIED PALESTINIAN TERRITORY
Meanwhile on the ground in Gaza, the situation continues to worsen. Our humanitarian colleagues report that hostilities across the Gaza Strip are continuing, with a devastating toll on civilians and critical infrastructure. Earlier today, local authorities reported attacks by Israeli forces that struck several heavy machinery vehicles across Gaza, halting solid waste and rubble removal services.
Despite the ongoing hostilities and despite the fact that aid has not come in for more than 50 days, we and our partners are doing what we can to support people throughout the Strip. In Gaza City yesterday, the acting Humanitarian Coordinator for the Occupied Palestinian Territory, Suzanna Tkalec, led a mission to Al Shifa Hospital, where she and partners viewed work underway to install a desalination plant to serve dialysis patients at the facility.
Our partners also report that several people suffering from severe acute malnutrition have been admitted to hospitals for treatment this week, with cases on the rise.
Despite extremely low supplies, some 180 community kitchens in Gaza continue to operate every day. However, many of these kitchens are at imminent risk of shutting down since stocks are being depleted. Because of lack of cooking gas, families are resorting to burning plastic to cook their meals.

Full highlights: https://www.un.org/sg/en/content/noon-briefing-highlight?date%5Bvalue%5D%5Bdate%5D=22%20April%202025

https://www.youtube.com/watch?v=el5ekOhkhYk

MIL OSI Video –

April 23, 2025

MIL-OSI Europe: Highlights – Energy Community Parliamentary Plenum – Committee on Industry, Research and Energy

Source: European Parliament

On 24 April, the ITRE Committee will host the Energy Community Parliamentary Plenum.

The Energy Community brings together the European Union and its neighbouring countries (Albania, Bosnia and Herzegovina, Kosovo, North Macedonia, Georgia, Moldova, Montenegro, Serbia and Ukraine) to create an integrated pan-European energy market. The aim of the Plenum is to ensure a dialogue between the parliaments of those countries and the European Parliament in order to solidify a parliamentary dimension in the Energy Community process.

This year’s Plenum will focus on electricity affordability and integration of renewables.

MIL OSI Europe News –

April 23, 2025

MIL-OSI Europe: Written question – Bloody Sunday: massacres in Ukraine and Gaza – P-001544/2025

Source: European Parliament

Priority question for written answer P-001544/2025
to the Council
Rule 144
Cecilia Strada (S&D), Camilla Laureti (S&D), Annalisa Corrado (S&D), Sandro Ruotolo (S&D), Giuseppe Lupo (S&D), Marco Tarquinio (S&D), Alessandra Moretti (S&D), Pierfrancesco Maran (S&D)

On Palm Sunday (13 April 2025), around 30 people, including children, were killed and more than 100 injured by a despicable Russian missile strike that used cluster munitions, which have rightly been condemned as contrary to any fundamental human principle.

On the same day, having given an evacuation order just twenty minutes before the attack, Israel bombed the Christian Al-Ahli Hospital, putting the last functional medical facility in Gaza City out of use and also killing three people, including a child.

Both massacres show complete disregard for the principles of international humanitarian law and are part of a series of violations of human rights and human dignity which should constitute a line in the sand for EU action on the international stage, as established in Article 21 TEU, the consistency of which is a prerogative of the Council, among others.

In the light of these atrocities:

1.Will the Council condemn the use of cluster munitions and any attempt to justify their production, use and deployment as a military deterrent?
2.Will it block the proposal for a decision on the position to be taken on behalf of the EU in the EU-Israel Association Council on the extension of the EU-Israel Action Plan for a further two years?

Supporters[1]

Submitted: 15.4.2025

[1] This question is supported by Members other than the authors: Dario Nardella (S&D), Brando Benifei (S&D), Alessandro Zan (S&D)

Last updated: 22 April 2025

MIL OSI Europe News –

April 23, 2025

MIL-OSI: Results of ING’s 2025 Annual General Meeting

Source: GlobeNewswire (MIL-OSI)

Results of ING’s 2025 Annual General Meeting

The Annual General Meeting (AGM) of ING Groep N.V. was held today in Amsterdam.

The AGM adopted all agenda items, including the annual accounts for 2024, discharge of the members of the Executive Board and the Supervisory Board and the dividend for 2024.

The AGM also approved the reappointment of Steven van Rijswijk and Ljiljana Čortan to the Executive Board. Stuart Graham and Petri Hofsté were appointed to the Supervisory Board and Margarete Haase and Lodewijk Hijmans van den Bergh were reappointed to the Supervisory Board.

Note for editors
For further information on ING, please visit www.ing.com. Frequent news updates can be found in the Newsroom or via the @ING_news X feed. Photos of ING operations, buildings and its executives are available for download at Flickr.

Press enquiries	Investor enquiries
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ING PROFILE
ING is a global financial institution with a strong European base, offering banking services through its operating company ING Bank. The purpose of ING Bank is: empowering people to stay a step ahead in life and in business. ING Bank’s more than 60,000 employees offer retail and wholesale banking services to customers in over 100 countries.

ING Group shares are listed on the exchanges of Amsterdam (INGA NA, INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N).

ING aims to put sustainability at the heart of what we do. Our policies and actions are assessed by independent research and ratings providers, which give updates on them annually. ING’s ESG rating by MSCI was reconfirmed by MSCI as ‘AA’ in August 2024 for the fifth year. As of December 2023, in Sustainalytics’ view, ING’s management of ESG material risk is ‘Strong’. Our current ESG Risk Rating, is 17.2 (Low Risk). ING Group shares are also included in major sustainability and ESG index products of leading providers. Here are some examples: Euronext, STOXX, Morningstar and FTSE Russell. Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that’s not. Follow our progress on ing.com/climate.

Important legal information
Elements of this press release contain or may contain information about ING Groep N.V. and/ or ING Bank N.V. within the meaning of Article 7(1) to (4) of EU Regulation No 596/2014 (‘Market Abuse Regulation’).

ING Group’s annual accounts are prepared in accordance with International Financial Reporting Standards as adopted by the European Union (‘IFRS- EU’). In preparing the financial information in this document, except as described otherwise, the same accounting principles are applied as in the 2024 ING Group consolidated annual accounts. All figures in this document are unaudited. Small differences are possible in the tables due to rounding.

Certain of the statements contained herein are not historical facts, including, without limitation, certain statements made of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to diﬀer materially from those expressed or implied in such statements. Actual results, performance or events may diﬀer materially from those in such statements due to a number of factors, including, without limitation: (1) changes in general economic conditions and customer behaviour, in particular economic conditions in ING’s core markets, including changes affecting currency exchange rates and the regional and global economic impact of the invasion of Russia into Ukraine and related international response measures (2) changes affecting interest rate levels (3) any default of a major market participant and related market disruption (4) changes in performance of financial markets, including in Europe and developing markets (5) fiscal uncertainty in Europe and the United States (6) discontinuation of or changes in ‘benchmark’ indices (7) inflation and deflation in our principal markets (8) changes in conditions in the credit and capital markets generally, including changes in borrower and counterparty creditworthiness (9) failures of banks falling under the scope of state compensation schemes (10) non- compliance with or changes in laws and regulations, including those concerning financial services, financial economic crimes and tax laws, and the interpretation and application thereof (11) geopolitical risks, political instabilities and policies and actions of governmental and regulatory authorities, including in connection with the invasion of Russia into Ukraine and the related international response measures (12) legal and regulatory risks in certain countries with less developed legal and regulatory frameworks (13) prudential supervision and regulations, including in relation to stress tests and regulatory restrictions on dividends and distributions (also among members of the group) (14) ING’s ability to meet minimum capital and other prudential regulatory requirements (15) changes in regulation of US commodities and derivatives businesses of ING and its customers (16) application of bank recovery and resolution regimes, including write down and conversion powers in relation to our securities (17) outcome of current and future litigation, enforcement proceedings, investigations or other regulatory actions, including claims by customers or stakeholders who feel misled or treated unfairly, and other conduct issues (18) changes in tax laws and regulations and risks of non-compliance or investigation in connection with tax laws, including FATCA (19) operational and IT risks, such as system disruptions or failures, breaches of security, cyber-attacks, human error, changes in operational practices or inadequate controls including in respect of third parties with which we do business and including any risks as a result of incomplete, inaccurate, or otherwise flawed outputs from the algorithms and data sets utilized in artificial intelligence (20) risks and challenges related to cybercrime including the eﬀects of cyberattacks and changes in legislation and regulation related to cybersecurity and data privacy, including such risks and challenges as a consequence of the use of emerging technologies, such as advanced forms of artificial intelligence and quantum computing (21) changes in general competitive factors, including ability to increase or maintain market share (22) inability to protect our intellectual property and infringement claims by third parties (23) inability of counterparties to meet financial obligations or ability to enforce rights against such counterparties (24) changes in credit ratings (25) business, operational, regulatory, reputation, transition and other risks and challenges in connection with climate change, diversity, equity and inclusion and other ESG-related matters, including data gathering and reporting and also including managing the conflicting laws and requirements of governments, regulators and authorities with respect to these topics (26) inability to attract and retain key personnel (27) future liabilities under defined benefit retirement plans (28) failure to manage business risks, including in connection with use of models, use of derivatives, or maintaining appropriate policies and guidelines (29) changes in capital and credit markets, including interbank funding, as well as customer deposits, which provide the liquidity and capital required to fund our operations, and (30) the other risks and uncertainties detailed in the most recent annual report of ING Groep N.V. (including the Risk Factors contained therein) and ING’s more recent disclosures, including press releases, which are available on www.ING.com.

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The MIL Network –

April 23, 2025

MIL-OSI United Kingdom: PM meeting with Prime Minister Luxon of New Zealand: 22 April 2025

Source: United Kingdom – Government Statements

Press release

PM meeting with Prime Minister Luxon of New Zealand: 22 April 2025

The Prime Minister hosted New Zealand Prime Minister Christopher Luxon at Downing Street today.

The two leaders reflected on their visit to Operation Interflex to see Ukrainian troops being trained earlier today, and the importance of supporting Ukraine for the long term.

Discussing the Coalition of the Willing, the Prime Minister thanked Prime Minister Luxon for New Zealand’s ongoing support, adding that the planning phase was making good progress across all four domains – land, air, regeneration and sea.

The Prime Minister welcomed New Zealand’s recent uplift in defence spending, and both agreed the direct link between defence spending, economic security and putting money back in the pockets of hardworking people.

Turning to the situation in the Indo-Pacific, the leaders agreed on the importance of working together to support regional stability and counter malign threats.

They also discussed the strong trade links between the UK and New Zealand, and the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

The leaders looked forward to speaking again soon.

Published 22 April 2025

MIL OSI United Kingdom –

April 23, 2025

MIL-OSI United Kingdom: Defence Secretary Statement to the House of Commons

Source: United Kingdom – Executive Government & Departments

Oral statement to Parliament

Defence Secretary Statement to the House of Commons

Ukraine Update

Thank you Mr Speaker. Today, HMS Prince of Wales set sail from Portsmouth and I trust the whole House will join me in wishing the entire carrier strike group a safe and successful global deployment.

Mr Speaker, I wish to make a statement on the ongoing war in Ukraine.

Today, parliament returns from its Easter break.

But during the last two weeks Putin’s illegal invasion of Ukraine has continued. Drones strikes. Missile attacks. Fierce fighting on the frontline.

On Palm Sunday, men, women and children in Sumy, on their way to church were hit by Putin’s deadliest attack on Ukrainian civilians so far this year, killing 35 people – including young children – and injuring over 100 more.

We are united in condemnation at this brutal attack and Putin’s illegal actions.

At this critical moment for Ukraine and for European security, we have stepped up the Government’s efforts for Ukraine and we will step up further, both to increase military support for the fight today and to secure peace for tomorrow.

Mr Speaker, we cannot jeopardise the peace by forgetting about the war.

So, ten days ago in Brussels, the UK convened and I co-chaired the 27th meeting of the Ukraine Defence Contact Group, alongside my good friend, the German Defence Minister Boris Pistorius.

51 nations and partners – from Europe from the Indo Pacific, from South America – came together at NATO HQ, including Ukrainian President Zelensky, US Defence Secretary Hegseth and NATO Secretary General Mark Rutte.

We came together to step up our support for Ukraine in the fight. Together we pledged a record 21 billion euros of military support to put Ukraine in strongest possible position and to increase pressure on Putin to negotiate.

Mr Speaker this year, the UK is providing £4.5 billion in military support to Ukraine, more than ever before.

And in Brussels, I announced £200 million of support will be surged to the front line, with supplies starting to reach Ukraine’s fighters within the next month including radar systems, anti-tank mines and hundreds of thousands of drones.

I also announced £160 million worth to help the repair and maintenance essential battlefield vehicles and equipment.

This support will strengthen Ukrainian troops in the close fight now and strengthen our industrial links with Ukraine to boost UK businesses.

When President Trump talks about peace through strength, it’s the commitments made through this Contact Group that provide the strength to secure that peace.

Despite President Putin’s promise of a 30-hour pause in fighting, I can confirm that Defence Intelligence have found, and I quote “no indication that a ceasefire on the frontline was observed over the Easter period”.

And 10,000 missiles and drones have been fired into Ukraine during this year alone, including from the Black Sea.

So, while Putin has said he declared an Easter truce – he broke it.

While Putin says he wants peace – he rejected a full ceasefire.

And while Putin says he wants to put an end to the fighting – he continues to play for time in negotiations.

And the military, the Russian military continue to press on a number of fronts.

Mr Speaker, I can confirm Russian military progress is slowing.

Putin gained less territory in March then he did in February and less territory in February than he did in January.

Ukrainian towns which Russia have been targeting since before Christmas have still not been captured.

Ukrainian troops have still not been ejected from Russian territory in Kursk.

Whatever ground Putin is taking comes at enormous human cost. Over 940,00 Russians have likely been killed or injured in the war so far – including over 150,000 killed and injured this year alone.

Last month, the average daily casualty rate on the Russian side was 1,300 – almost double the rate of this time last year.

While at home, Putin faces crippling interest rates at 21 per cent, inflation running at over 10 per cent and the Russian government is spending nearly 40 per cent of its total budget on this military campaign.

I have to say Mr Speaker, in the days ahead, it is likely that Russia will keep up attacks on the Sumy oblast to help it fully reclaim nearby contested areas of Kursk.

In central Donetsk oblast, Russia is targeting urban strongholds such as Toretsk, Povrosk and Chasiv Yar.

And in Kharkiv, Russia is continuing to make assaults towards the rail and logistics hub of Kupiansk.

We do expect more ground to be taken, and more Russian missiles fired into Ukraine.

And that is why we must remain united for Ukraine across this House, across this country, and across those nations standing alongside Ukraine.

And we will step up support for Ukraine and pressure on Putin to force him to recognise that now is the time for peace, and continuing the war will prove much worse in the long run for Russia.

Published 22 April 2025

MIL OSI United Kingdom –

April 23, 2025

MIL-OSI USA: Durbin Statement On The Passing Of Pope Francis

US Senate News:

Source: United States Senator for Illinois Dick Durbin

April 21, 2025

CHICAGO – U.S. Senate Democratic Whip Dick Durbin (D-IL) today released the following statement regarding the passing of Pope Francis:

“We have lost the messenger, but we must hold fast to the message of Pope Francis to love and respect one another. In a world of hate and fear, Pope Francis’ message of peace and understanding is needed now more than ever.

“We should honor the Pope with a ‘Francis Day’ of world peace: stop the bombing in Ukraine and Gaza; feed the dying in Sudan and around the globe; and show kindness to one another.”

-30-

MIL OSI USA News –

April 23, 2025

MIL-OSI Global: Make Russia Medieval Again! How Putin is seeking to remold society, with a little help from Ivan the Terrible

Source: The Conversation – Global Perspectives – By Dina Khapaeva, Professor of Cultural Studies, Georgia Institute of Technology

Russian President Vladimir Putin has draped himself in old-fashioned, medieval conceptions of Russian history to add symbolic weight to his authoritarian government. AP Photo/Alexander Zemlianichenko

Beginning in September 2025, Russian middle and high school students will be handed a new textbook titled “My Family.”

Published in March 2025, the textbook’s co-author Nina Ostanina, chair of the State Duma Committee for the Protection of the Family, claims that it will teach students “traditional moral values” that will improve “the demographic situation in the country” as part of a “Family Studies” course that was rolled out in the 2024-2025 school year.

But some of those lessons for modern living come from a less-than-modern source. Among the materials borrowed from in “My Family” is the 16th century “Domostroi” – a collection of rules for maintaining patriarchal domestic order. It was written, supposedly, by Sylvester, a monk-tutor of czar Ivan the Terrible.

Unsurprisingly, some teachings from “Domostroi” seem out-of-keeping with today’s sensibilities. For example, it states that it is the right of a father to coerce, if needed by force, his household – at the time, this would refer to both relatives and slaves – in accordance with Orthodox dogmas.

“Husbands should teach their wives with love and exemplary instruction,” reads one of the Domostroi quotations repeated in the textbook.

“Wives ask their husbands about strict order, how to save their souls, please God and their husbands, arrange their home well, and submit to their husbands in all matters; and what the husband orders, they should agree with love and carry out according to his commands,” reads another extract

Czar Ivan the Terrible and the priest Sylvester.
Wikimedia Commons

The use of “Domostroi” in the textbook both references the past while evoking the current government’s politics of decriminalizing family violence. A 2017 law, for example, removed nonaggravated “battery of close persons” from the list of criminal offenses.

It also fits a wider pattern. As a scholar of historical memory, I have observed that references to the Russian Middle Ages are part of the Kremlin’s broader politics of using the medieval past to justify current agendas, something I have termed “political neomedievalism.”

Indeed, President Vladimir Putin’s government is actively prioritizing initiatives that use medieval Russia as a model for the country’s future. In doing so, the Kremlin unites a long-nurtured dream of the Russian far right with a broader quest for the fulfillment of Russian imperial ambitions.

Whitewashing Ivan the Terrible

In February 2025, just a month before “My Family” was published, the government of Russia’s Vologda region – home to over 1 million people – established nongovernmental organization called “The Oprichnina.”

The organization is tasked with “fostering Russian identity” and “developing the moral education of youth.”

But the group’s name evokes the first reign of brutal state terror in Russian history. The Oprichnina was a state policy unleashed by Ivan the Terrible from 1565 to 1572 to establish his unrestrained power over the country. The oprichniks were Ivan’s personal guard, who attached a dog’s head and a broom to their saddles to show that they were the czar’s “dogs” who swept treason away.

Chroniclers and foreign travelers left accounts of the sadistic tortures and mass executions that were conducted with Ivan’s participation. The oprichniks raped and dismembered women, flayed or boiled men alive and burned children. In this frenzy of violence, they slaughtered many thousands of innocent people.

Ivan’s reign led to a period known as the “Time of Troubles,” marked by famine and military defeat. Some scholars estimate that by its end, Russia lost nearly two-thirds of its population.

Ivan IV, czar of Russia from 1547 to 1584, known as Ivan the Terrible.
Rischgitz/Getty Images

Throughout Russian history, Ivan the Terrible – who among his other crimes murdered his eldest son and had the head of Russian Orthodox Church strangled for dissent – was remembered as a repulsive tyrant.

However, since the mid-2000s, when the Russian government under Putin took an increasingly authoritarian turn, Ivan and his terror have undergone a state-driven process of reevalution.

The Kremlin and its far-right proxies now paint Ivan as a great statesman and devout Russian Orthodox Christian who laid the foundations of the Russian Empire.

Prior to that alteration of Russian historical memory, only one other Russian head of state had held Ivan in such high esteem: Josef Stalin.

Even so, no public monuments to Ivan existed until 2016, when Putin’s officials unveiled the first of three bronze statues dedicated to the terrible czar. Yet, the cinematic propaganda outmatched the commemorations of Ivan in stone. By my count, from 2009 to 2022, 12 state-sponsored films and TV series paying tribute to Ivan the Terrible and his rule aired in prime time on Russian TV channels.

Russian revisionism

The post-Soviet rehabilitation of Ivan the Terrible goes back to the writings of Ivan Snychov, the metropolitan, or high ranking bishop, of Saint Petersburg and Ladoga. His book, “The Autocracy of the Spirit,” published in 1994, gave rise to a fundamentalist sect known as “Tsarebozhie,” or neo-Oprichnina. Tsarebozhie calls for a return to an autocratic monarchy, a society of orders and the canonization of all Russian czars. The belief that Russian state power is “sacred” – a central dogma of the sect – was reaffirmed on April 18, 2025, by Alexander Kharichev, an official in Putin’s Presidential Administration, in an article that has been likened to an instruction manual for the “builder of Putinism.”

The canonization of Ivan the Terrible specifically is a top priority for members of this sect. And while the Russian Orthodox Church has yet to canonize Ivan, Tsarebozhie have garnered significant support from Russian priests, politicians and laypersons alike. Their efforts sit alongside Putin’s yearslong push to give public support for Ivan. Not by chance, Putin’s minister of foreign affairs, Sergei Lavrov, reportedly named Ivan the Terrible among one of Putin’s three “most trusted advisers.”

In Snychov’s worldview, Russians are a messianic people, part of an imperial nation that is uniquely responsible for preventing Satan’s domination of the world. In his explicitly antisemitic pseudo-history of Russia, the Oprichnina is described as a “saintly monastic order” led by a “pious tsar.”

Since the 1930s, when Stalin used Ivan to justify his own repressions, Ivan and Stalin – the Oprichnina and Stalinism – became historical doubles. The whitewashing of Ivan by the Kremlin goes hand in hand with Putin’s rehabilitation of Stalin as commander in chief of the Soviet Union’s victory in World War II.

Promoting the cult of the “Great Patriotic War” – as the Second World War has officially been called since the Soviet period – has been central to Putin’s militarization of Russian society and part of the propaganda effort to foster support for the invasion of Ukraine. The remorse for the loss of empire and desire to restore it underlies Moscow’s discourse over the past two decades.

Medieval threat to democracy

The rhetoric of absolving Stalinism goes hand in hand with popularizing the state’s version of the Russian Middle Ages through public media channels.

Putin’s neomedieval politics have adopted the Russian far-right belief that the country should return to the traditions of medieval Rus, as it existed before the Westernization reforms undertaken by Peter the Great in the early 18th century.

Over the past 15 years, Russian TV viewers have received an average of two state-funded movies per month, advertising the benefits of Russian medieval society and praising Russian medieval warlords.

This use of Russian historical memory has allowed Putin to normalize his use of state violence abroad and at home and mobilize support for his suppression of the opposition. The major goal of political neomedievalism is to legitimize huge social and economic inequalities in post-Soviet society as a part of Russia’s national heritage.

To serve the purpose of undermining the rule of law and democratic freedoms, as my research demonstrates, the Kremlin and its proxies have promoted the Russian Middle Ages – with its theocratic monarchy, society of estates, slavery, serfdom and repression – as a state-sponsored alternative to democracy.

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

– ref. Make Russia Medieval Again! How Putin is seeking to remold society, with a little help from Ivan the Terrible – https://theconversation.com/make-russia-medieval-again-how-putin-is-seeking-to-remold-society-with-a-little-help-from-ivan-the-terrible-253812

MIL OSI – Global Reports –

April 23, 2025

MIL-OSI Global: Ukraine war: path to peace looks increasingly narrow as Kyiv’s western backers scramble to focus on their own interests

Source: The Conversation – UK – By Stefan Wolff, Professor of International Security, University of Birmingham

After more than three years of war, the prospects of peace for Ukraine remain slim. There is no obvious credible pathway even to a ceasefire, given Russia’s refusal to extend a brief and shaky truce over Easter. This, despite the US, UK and Ukraine all signalling their support for this idea.

And even if the considerable hurdles impeding a ceasefire deal could be overcome, a more fundamental problem would remain. None of the key players in the conflict appear to have a plan for an agreement that is likely to be acceptable to Kyiv and Moscow.

Previous plans, such as a joint proposal by China and Brazil in May last year which was supported by a Chinese-led “Friends of Peace” group were primarily focused on a ceasefire as a stepping stone to negotiations about an actual peace agreement.

This and other plans were all light on detail of what a peace deal between Russia and Ukraine would entail but were nonetheless roundly rejected by Ukraine and its western allies as favouring Russia. Given that a ceasefire would simply freeze the front lines and very likely make them permanent with or without a subsequent peace agreement, this was not an unreasonable position.

What Ukraine proposed instead, however – and what its western allies backed, at least rhetorically – was hardly more viable. The peace plan proposed by Ukrainian president Volodymyr Zelensky in December 2022 was already on life support at the time of the first “Summit on Peace in Ukraine” in Switzerland in June 2024.

Only 84 of the 100 delegations attending the summit (out of 160 invited) supported a watered-down version of Zelensky’s plan in their final communique – and there was no agreement on a follow-up meeting. Ukraine’s peace plan was clearly dead in the water.

Ukraine then proposed an “internal resilience plan”. With its its focus on ensuring that the country can survive a long war of attrition with Russia, this is anything but a peace plan.

But it serves Kyiv’s needs to avoid an unconditional surrender to Moscow. This is also high on the agenda for Ukraine’s European allies who remain committed to supporting Kyiv.

For the emerging European coalition of the willing, it is important to keep Ukraine in the fight while they build up their own defences. They face the possibility of a new international order in which the world might well be carved up into US, Russian and Chinese spheres of influence.

Where the White House stands

Such a carve-up is at the heart of efforts by the US president, Donald Trump. Trump is trying to secure a ceasefire between Russia and Ukraine as well as a deal that would give the US privileged access to Ukrainian resources.

Having initially fallen apart during an extraordinarily acrimonious press conference in the White House on February 28, this deal now appears to be relatively close to conclusion.

The ceasefire deal Trump appears to envisage would divide Ukraine itself into spheres of influence according to a plan recently suggested by Trump’s special envoy for Ukraine, Keith Kellogg. Yet even such a pro-Moscow arrangement that would offer Putin control of 20% of Ukraine continues to elude negotiators.

At present, the Russian president has few incentives to settle for less than his maximum demands and stop a war that he thinks he is still able to win on the battlefield – particularly given Trump’s unwillingness to exert any meaningful pressure on Russia.

At times, it now appears more likely that Trump will simply abandon his efforts to end the fighting in Ukraine. From a Russian perspective, this would be preferable to a ceasefire that freezes the conflict but doesn’t lead to a peace deal reflecting Moscow’s demands.

The likely calculation in the Kremlin is that even if the 2026 mid-term elections in the US water down Trump’s power, that still leaves two more years to conquer more Ukrainian territory. Should Washington then make another push for a ceasefire, Moscow could claim any additional conquests as a price for Ukraine to pay for a settlement.

Even if Trump does not walk away from the negotiations now, and even if his special envoy Steve Witkoff ultimately manages to cobble together a deal, this will more likely look like a ceasefire than like a peace agreement.

Gulf remains between Russia and Ukraine

The simple reason for this is that Russia’s and Ukraine’s positions on an acceptable outcome have not shifted. Putin remains committed to the full annexation of four complete Ukrainian regions as well as retaining Crimea. Zelensky has repeatedly ruled out territorial concessions and is broadly supported by Ukrainians in this stance.

For the west, the reality that a peace agreement is close to impossible on terms satisfying all sides has become a self-fulfilling prophecy. To the extent that there are any joint efforts by Ukraine, the US and the European coalition of the willing, they are completely centred on a workable ceasefire.

At a meeting of foreign ministers and high-level officials in Paris on April 17, discussions were focused on making such a ceasefire sustainable.

While details of how this can be achieved remain unclear, the fact that there now appears to be a more inclusive negotiations track signals progress, at least on the process of negotiations. Whether this will lead to an actual breakthrough towards a sustainable ceasefire, however, will depend on their substance and whether Ukraine and Russia can ultimately agree on terms about disengagement of forces, monitoring, and guarantees and enforcement mechanisms.

This is an already incredibly high bar, and the bar for a subsequent peace agreement is higher yet. In the current stage of Russia’s war of aggression against Ukraine, a ceasefire is clearly a precondition for a peace agreement. But the sole focus on the former will not make the latter any more likely.

What’s more, given Russia’s track record of reneging on the Minsk ceasefire agreements of September 2014 and February 2015, investing everything in a ceasefire deal might turn out not just a self-fulfilling but a self-defeating prophecy for Ukraine and its supporters.

Stefan Wolff is a past recipient of grant funding from the Natural Environment Research Council of the UK, the United States Institute of Peace, the Economic and Social Research Council of the UK, the British Academy, the NATO Science for Peace Programme, the EU Framework Programmes 6 and 7 and Horizon 2020, as well as the EU’s Jean Monnet Programme. He is a Trustee and Honorary Treasurer of the Political Studies Association of the UK and a Senior Research Fellow at the Foreign Policy Centre in London.

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

– ref. Ukraine war: path to peace looks increasingly narrow as Kyiv’s western backers scramble to focus on their own interests – https://theconversation.com/ukraine-war-path-to-peace-looks-increasingly-narrow-as-kyivs-western-backers-scramble-to-focus-on-their-own-interests-254864

MIL OSI – Global Reports –

April 23, 2025

MIL-OSI: BCB Bancorp, Inc. Reports Net Loss of $8.3 Million in First Quarter 2025; Declares Quarterly Cash Dividend of $0.16 Per Share

Source: GlobeNewswire (MIL-OSI)

BAYONNE, N.J., April 22, 2025 (GLOBE NEWSWIRE) — BCB Bancorp, Inc. (the “Company”), (NASDAQ: BCBP), the holding company for BCB Community Bank (the “Bank”), today reported a net loss of $8.3 million for the first quarter of 2025, compared to net income of $3.3 million in the fourth quarter of 2024, and net income of $5.9 million for the first quarter of 2024. Its loss per diluted share for the first quarter of 2025 was ($0.51), compared to earnings per diluted share of $0.16 in the preceding quarter and $0.32 in the first quarter of 2024.

The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.16 per share. The dividend will be payable on May 21, 2025 to common shareholders of record on May 7, 2025.

“Our first-quarter loss was primarily driven by a $13.7 million specific reserve tied to a $34.2 million loan in the cannabis sector,” Michael Shriner, President and Chief Executive Officer of BCB Bank, explained. “Although the borrower remains current, the significant deterioration in their financial condition warranted a downgrade to non-accrual status and the establishment of the reserve. We also increased reserves for our discontinued Business Express Loan portfolio by $3.1 million, in response to the portfolio’s continued elevated deterioration and broader macroeconomic headwinds.”

“While these credit actions have impacted short-term results, they reflect our disciplined and proactive approach to risk management,” added Mr. Shriner. “Thanks to the positive capital actions taken throughout 2024, we remain well-capitalized, giving us the flexibility to address credit challenges head-on.”

“BCB Bank has bolstered its credit risk team with new hires who we believe bring deep expertise and a rigorous approach to underwriting,” said Mr. Shriner. “These efforts are part of a broader initiative to strengthen our credit quality oversight. Following a comprehensive portfolio review using a conservative risk framework, we’ve adjusted the risk ratings on a number of loans to better reflect current market realities. Importantly, the majority of our customers remain current on their payments, and our team is actively engaging with borrowers to secure updated financials and support improved risk profiles.”

Executive Summary

Total deposits were $2.687 billion at March 31, 2025 compared to $2.751 billion at December 31, 2024.
Net interest margin was 2.59 percent for the first quarter of 2025, compared to 2.53 percent for the fourth quarter of 2024, and 2.50 percent for the first quarter of 2024.
- Total yield on interest-earning assets was 5.20 percent for the first quarter of 2025, compared to 5.33 percent for both the fourth quarter of 2024, and the first quarter of 2024.
- Total cost of interest-bearing liabilities decreased 24 basis points to 3.33 percent for the first quarter of 2025, compared to 3.57 percent for the fourth quarter of 2024, and decreased 21 basis points to 3.54 percent for the first quarter of 2024.
The efficiency ratio for the first quarter was 61.6 percent compared to 62.1 percent in the prior quarter, and 58.8 percent in the first quarter of 2024.
The annualized return on average assets ratio for the first quarter was (0.95) percent, compared to 0.36 percent in the prior quarter, and 0.61 percent in the first quarter of 2024.
The annualized return on average equity ratio for the first quarter was (10.4) percent, compared to 4.0 percent in the prior quarter, and 7.5 percent in the first quarter of 2024.
The provision for credit losses was $20.8 million in the first quarter of 2025 compared to $4.2 million for the fourth quarter of 2024. In the first quarter of 2024, the Bank recorded a provision of $2.1 million.
The allowance for credit losses (“ACL”) as a percentage of non-accrual loans was 51.6 percent at March 31, 2025 compared to 77.8 percent for the prior quarter-end and 155.4 percent at March 31, 2024. Total non-accrual loans were $99.8 million at March 31, 2025, $44.7 million at December 31, 2024 and $22.2 million at March 31, 2024.
Total loans receivable, net of the allowance for credit losses, of $2.918 billion at March 31, 2025, decreased 2.6 percent from $2.996 billion at December 31, 2024, and decreased 9.6 percent, from $3.227 billion at March 31, 2024.

Balance Sheet Review

Total assets decreased by $125.3 million, or 3.5 percent, to $3.474 billion at March 31, 2025, from $3.599 billion at December 31, 2024. The decrease in total assets was mainly related to a decrease in net loans and in cash and cash equivalents.

Total cash and cash equivalents decreased by $64.5 million, or 20.3 percent, to $252.8 million at March 31, 2025, from $317.3 million at December 31, 2024. The decrease in cash was primarily due to the reduction of the Bank’s exposure to wholesale funding by paying down high cost brokered deposits.

Loans receivable, net, decreased by $78.6 million, or 2.6 percent, to $2.918 billion at March 31, 2025, from $2.996 billion at December 31, 2024. Total loan decreases during the period included decreases totaling $62.3 million in commercial real estate and multi-family loans, construction loans, 1-4 family residential loans and home equity loans. The allowance for credit losses increased $16.7 million to $51.5 million, or 51.6 percent of non-accruing loans and 1.73 percent of gross loans, at March 31, 2025, as compared to an allowance for credit losses of $34.8 million, or 77.8 percent of non-accruing loans and 1.15 percent of gross loans, at December 31, 2024.

Total investment securities increased by $14.7 million, or 13.2 percent, to $125.9 million at March 31, 2025, from $111.2 million at December 31, 2024, representing current year purchases.

Deposits decreased by $64.4 million, or 2.3 percent, to $2.687 billion at March 31, 2025, from $2.751 billion at December 31, 2024. Brokered deposits decreased $112.5 million, and were offset by increases in certificates of deposit, money market accounts, transaction accounts and savings accounts which totaled $48.4 million.

Debt obligations decreased by $49.8 million to $448.5 million at March 31, 2025 from $498.3 million at December 31, 2024, due to maturities and paydowns of our FHLB advances. The weighted average interest rate of FHLB advances was 4.33 percent at March 31, 2025 and 4.35 percent at December 31, 2024. The weighted average maturity of FHLB advances as of March 31, 2025 was 0.83 years. The interest rate of our subordinated debt balances was 9.25 percent at March 31, 2025 and at December 31, 2024.

Stockholders’ equity decreased by $9.2 million, or 2.8 percent, to $314.7 million at March 31, 2025, from $323.9 million at December 31, 2024. The decrease was attributable to the decrease in retained earnings of $11.6 million, or 8.2 percent, to $130.3 million at March 31, 2025 from $141.9 million at December 31, 2024. Offsetting this were increases in accumulated other comprehensive income, and additional paid in capital on stock, which totaled $2.4 million.

First Quarter 2025 Income Statement Review

The Company reported a net loss of $8.3 million for the first quarter ended March 31, 2025 as compared to net income of $5.9 million for the first quarter ended March 31, 2024. The decline was primarily driven by an increase to the Provision for loan losses of $18.8 million. offset by $5.8 million decrease in income tax provisioning. Also, net interest income decreased by $1.1 million, or 4.9 percent, to $22.0 million for the first quarter of 2025, from $23.1 million for the first quarter of 2024. The decrease in net interest income resulted from lower interest income which was partially offset by lower interest expense.

Interest income decreased by $5.1 million, or 10.3 percent, to $44.2 million for the first quarter of 2025 from $49.3 million for the first quarter of 2024. The average balance of interest-earning assets decreased $255.9 million, or 6.9 percent, to $3.444 billion for the first quarter of 2025 from $3.699 billion for the first quarter of 2024, while the average yield decreased 13 basis points to 5.20 percent for the first quarter of 2025 from 5.33 percent for the first quarter of 2024.

Interest expense decreased by $4.0 million to $22.2 million for the first quarter of 2025 from $26.1 million for the first quarter of 2024. The decrease resulted from a decrease in the average rate paid on interest-bearing liabilities of 21 basis points to 3.33 percent for the first quarter of 2025 from 3.54 percent for the first quarter of 2024, while the average balance of interest-bearing liabilities decreased by $256.2 million to $2.701 billion for the first quarter of 2025 from $2.957 billion for the first quarter of 2024.

The net interest margin was 2.59 percent for the first quarter of 2025 compared to 2.50 percent for the first quarter of 2024. The increase in the net interest margin compared to the first quarter of 2024 was the result of a decrease in the cost of interest-bearing liabilities partially offset by the decrease in the yield on interest-earning assets.

During the first quarter of 2025, the Company recognized $4.2 million in net charge-offs compared to $1.1 million in net charge-offs in the first quarter of 2024. The Bank had non-accrual loans totaling $99.8 million, or 3.36 percent of gross loans, at March 31, 2025 as compared to $44.7 million, or 1.48 percent of gross loans, at December 31, 2024. The allowance for credit losses on loans was $51.5 million, or 1.73 percent of gross loans, at March 31, 2025, and $34.8 million, or 1.15 percent of gross loans, at December 31, 2024. The provision for credit losses was $20.8 million for the first quarter of 2025 compared to $4.2 million for the fourth quarter of 2024. Management believes that the allowance for credit losses on loans was adequate at March 31, 2025 and December 31, 2024.

Non-interest income decreased by $318 thousand to $1.8 million for the first quarter of 2025 from $2.1 million in the first quarter of 2024. The decrease in total non-interest income was mainly related to decreases in gains on equity securities and BOLI income of $245 thousand and $67 thousand, respectively.

Non-interest expense decreased by $178 thousand, or 1.2 percent, to $14.7 million for the first quarter of 2025 when compared to non-interest expense of $14.8 million for the first quarter of 2024. The decrease in these expenses for the first quarter of 2025 was primarily driven by lower regulatory assessment charges, offset by higher salaries and employee benefits.

The income tax provision decreased by $5.8 million, to an income tax credit of $3.4 million for the first quarter of 2025 when compared to a $2.5 million provision for the first quarter of 2024.

Asset Quality

During the first quarter of 2025, the Company recognized $4.2 million in net charge offs, compared to $1.1 million in net charge-offs for the first quarter of 2024.

The Bank had non-accrual loans totaling $99.8 million, or 3.36 percent of gross loans, at March 31, 2025, as compared to $22.2 million, or 0.68 percent of gross loans, at March 31, 2024. More than 60% of the non-accrual loans are current with all payments of principal, interest, taxes and insurance, including the previously mentioned loan that has been allocated a specific reserve. However, given that the normal standard for non-accrual is a 90 day delinquency, logic and transparency dictates that this population of loans possess certain weaknesses that are beyond payment status and therefore, even though they are current, they should be placed on non-accrual. Although our borrowers have made payment of their loan obligations to BCB a priority, our evaluation of their financial condition causes some concern about their continued ability to do so. The allowance for credit losses was $51.5 million, or 1.73 percent of gross loans, at March 31, 2025, and $34.6 million, or 1.06 percent of gross loans, at March 31, 2024. The allowance for credit losses was 51.6 percent of non-accrual loans at March 31, 2025, and 155.4 percent of non-accrual loans at March 31, 2024.

About BCB Bancorp, Inc.

Established in 2000 and headquartered in Bayonne, N.J., BCB Community Bank is the wholly-owned subsidiary of BCB Bancorp, Inc. (NASDAQ: BCBP). The Bank has twenty-three branch offices in Bayonne, Edison, Hoboken, Fairfield, Holmdel, Jersey City, Lyndhurst, Maplewood, Monroe Township, Newark, Parsippany, Plainsboro, River Edge, Rutherford, South Orange, Union, and Woodbridge, New Jersey, and four branches in Hicksville and Staten Island, New York. The Bank provides businesses and individuals a wide range of loans, deposit products, and retail and commercial banking services. For more information, please go to www.bcb.bank.

Forward-Looking Statements

This release, like many written and oral communications presented by BCB Bancorp, Inc., and our authorized officers, may contain certain forward-looking statements regarding our prospective performance and strategies 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. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of said safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by use of words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “project,” “seek,” “strive,” “try,” or future or conditional verbs such as “could,” “may,” “should,” “will,” “would,” or similar expressions. Our ability to predict results or the actual effects of our plans or strategies is inherently uncertain. Accordingly, actual results may differ materially from anticipated results.

The most significant factor that could cause future results to differ materially from those anticipated by our forward-looking statements include the ongoing impact of global tariffs imposed by the Trump administration, higher inflation levels, and general economic and recessionary concerns, all of which could impact economic growth and could cause increased loan delinquencies, a reduction in financial transactions and business activities, including decreased deposits and reduced loan originations, our ability to manage liquidity and capital in a rapidly changing and unpredictable market, supply chain disruptions, and labor shortages. Other factors that could cause future results to vary materially from current management expectations as reflected in our forward-looking statements include, but are not limited to: the global impact of the military conflicts in the Ukraine and the Middle East; unfavorable economic conditions in the United States generally and particularly in our primary market area; the Company’s ability to effectively attract and deploy deposits; changes in the Company’s corporate strategies, the composition of its assets, or the way in which it funds those assets; shifts in investor sentiment or behavior in the securities, capital, or other financial markets, including changes in market liquidity or volatility; the effects of declines in real estate values that may adversely impact the collateral underlying our loans; increase in unemployment levels and slowdowns in economic growth; our level of non-performing assets and the costs associated with resolving any problem loans including litigation and other costs; the impact of changes in interest rates and the credit quality and strength of underlying collateral and the effect of such changes on the market value of our loan and investment securities portfolios; the credit risk associated with our loan portfolio; changes in the quality and composition of the Bank’s loan and investment portfolios; changes in our ability to access cost-effective funding; deposit flows; legislative and regulatory changes, including increases in Federal Deposit Insurance Corporation, or FDIC, insurance rates; monetary and fiscal policies of the federal and state governments; changes in tax policies, rates and regulations of federal, state and local tax authorities; demands for our loan products; demand for financial services; competition; changes in the securities or secondary mortgage markets; changes in management’s business strategies; changes in consumer spending; our ability to hire and retain key employees; the effects of any reputational, credit, interest rate, market, operational, legal, liquidity, or regulatory risk; expanding regulatory requirements which could adversely affect operating results; civil unrest in the communities that we serve; and other factors discussed elsewhere in this report, and in other reports we filed with the SEC, including under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K, and our other periodic reports that we file with the SEC.

Annualized, pro forma, projected and estimated numbers are used for illustrative purpose only, are not forecasts and may not reflect actual results.

Explanation of Non-GAAP Financial Measures

Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). This press release also contains certain supplemental Non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s financial results for the periods in question.

The Company provides measurements and ratios based on tangible stockholders’ equity and efficiency ratios. These measures are utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors. For a reconciliation of GAAP to Non-GAAP financial measures included in this press release, see “Reconciliation of GAAP to Non-GAAP Financial Measures” below.


	Statements of Operations – Three Months Ended,
	March 31,2025			December 31, 2024			March 31, 2024		Mar 31, 2025 vs. Dec 31, 2024			Mar 31, 2025 vs. Mar 31, 2024
Interest and dividend income:	(In thousands, except per share amounts, Unaudited)
Loans, including fees	$	38,927		$	41,431		$	43,722		-6.0	%		-11.0	%
Mortgage-backed securities		561			473			305		18.6	%		83.9	%
Other investment securities		968			978			975		-1.0	%		-0.7	%
FHLB stock and other interest-earning assets		3,736			3,771			4,283		-0.9	%		-12.8	%
Total interest and dividend income		44,192			46,653			49,285		-5.3	%		-10.3	%

Interest expense:
Deposits:
Demand		5,418			5,866			5,257		-7.6	%		3.1	%
Savings and club		151			156			166		-3.2	%		-9.0	%
Certificates of deposit		10,762			12,218			14,983		-11.9	%		-28.2	%
		16,331			18,240			20,406		-10.5	%		-20.0	%
Borrowings		5,856			6,219			5,736		-5.8	%		2.1	%
Total interest expense		22,187			24,459			26,142		-9.3	%		-15.1	%

Net interest income		22,005			22,194			23,143		-0.9	%		-4.9	%
Provision for credit losses		20,845			4,154			2,088		401.8	%		898.3	%

Net interest income after provision for credit losses		1,160			18,040			21,055		-93.6	%		-94.5	%

Non-interest income income :
Fees and service charges		1,173			1,187			1,215		-1.2	%		-3.5	%
(Loss) gain on sales of loans		–			(554	)		45		-100.0	%		-100.0	%
Realized and unrealized (loss) gain on equity investments		(115	)		(661	)		130		-82.6	%		-188.5	%
Bank-owned life insurance (“BOLI”) income		608			636			675		-4.4	%		-9.9	%
Other		125			330			44		-62.1	%		184.1	%
Total non-interest income		1,791			938			2,109		90.9	%		-15.1	%

Non-interest expense:
Salaries and employee benefits		7,403			7,117			6,981		4.0	%		6.0	%
Occupancy and equipment		2,723			2,483			2,644		9.7	%		3.0	%
Data processing and communications		1,844			1,754			1,853		5.1	%		-0.5	%
Professional fees		692			599			595		15.5	%		16.3	%
Director fees		418			269			277		55.4	%		50.9	%
Regulatory assessment fees		709			769			1,142		-7.8	%		-37.9	%
Advertising and promotions		179			212			216		-15.6	%		-17.1	%
Other		692			1,164			1,130		-40.5	%		-38.8	%
Total non-interest expense		14,660			14,367			14,838		2.0	%		-1.2	%

(Loss) Income before income tax provision		(11,709	)		4,611			8,326		-353.9	%		-240.6	%
Income tax (benefit) provision		(3,385	)		1,339			2,460		-352.8	%		-237.6	%

Net (Loss) Income		(8,324	)		3,272			5,866		-354.4	%		-241.9	%
Preferred stock dividends		482			475			434		1.6	%		11.0	%
Net (Loss) Income available to common stockholders	$	(8,806	)	$	2,797		$	5,432		-414.8	%		-262.1	%

Net (Loss) Income per common share-basic and diluted
Basic	$	(0.51	)	$	0.16		$	0.32		-413.8	%		-260.4	%
Diluted	$	(0.51	)	$	0.16		$	0.32		-414.7	%		-260.5	%

Weighted average number of common shares outstanding
Basic		17,113			17,056			16,930		0.3	%		1.1	%
Diluted		17,113			17,108			16,939		0.0	%		1.0	%

Statements of Financial Condition	March 31,2025			December 31,2024			March 31, 2024			March 31, 2025 vs. December 31, 2024			March 31, 2025 vs. March 31, 2024
ASSETS	(In Thousands, Unaudited)
Cash and amounts due from depository institutions	$	11,977		$	14,075		$	11,795			-14.9	%		1.5	%
Interest-earning deposits		240,773			303,207			340,653			-20.6	%		-29.3	%
Total cash and cash equivalents		252,750			317,282			352,448			-20.3	%		-28.3	%

Interest-earning time deposits		735			735			735			–			–
Debt securities available for sale		116,496			101,717			86,966			14.5	%		34.0	%
Equity investments		9,357			9,472			9,223			-1.2	%		1.5	%
Loans held for sale		–			–			–			–			–
Loans receivable, net of allowance for credit losses on loans
of $51,484, $34,789 and $34,563 , respectively		2,917,610			2,996,259			3,226,877			-2.6	%		-9.6	%
Federal Home Loan Bank of New York (“FHLB”) stock, at cost		22,066			24,272			24,917			-9.1	%		-11.4	%
Premises and equipment, net		12,474			12,569			12,744			-0.8	%		-2.1	%
Accrued interest receivable		16,354			15,176			17,442			7.8	%		-6.2	%
Deferred income taxes		22,814			17,181			17,555			32.8	%		30.0	%
Goodwill and other intangibles		5,253			5,253			5,253			0.0	%		0.0	%
Operating lease right-of-use asset		12,622			12,686			12,186			-0.5	%		3.6	%
Bank-owned life insurance (“BOLI”)		76,648			76,040			74,081			0.8	%		3.5	%
Other assets		8,643			10,476			8,768			-17.5	%		-1.4	%
Total Assets	$	3,473,822		$	3,599,118		$	3,849,195			-3.5	%		-9.8	%

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES
Non-interest bearing deposits	$	542,621		$	520,387		$	531,112			4.3	%		2.2	%
Interest bearing deposits		2,143,887			2,230,471			2,460,547			-3.9	%		-12.9	%
Total deposits		2,686,508			2,750,858			2,991,659			-2.3	%		-10.2	%
FHLB advances		405,499			455,361			472,949			-10.9	%		-14.3	%
Subordinated debentures		43,024			42,961			37,624			0.1	%		14.4	%
Operating lease liability		13,087			13,139			12,579			-0.4	%		4.0	%
Other liabilities		10,982			12,874			14,253			-14.7	%		-22.9	%
Total Liabilities		3,159,100			3,275,193			3,529,064			-3.5	%		-10.5	%

STOCKHOLDERS’ EQUITY
Preferred stock: $0.01 par value, 10,000 shares authorized		–			–			–			–			–
Additional paid-in capital preferred stock		25,243			24,723			27,733			2.1	%		-9.0	%
Common stock: no par value, 40,000 shares authorized		–			–			–			0.0	%		0.0	%
Additional paid-in capital common stock		201,804			200,935			199,726			0.4	%		1.0	%
Retained earnings		130,291			141,853			138,643			-8.2	%		-6.0	%
Accumulated other comprehensive loss		(4,269	)		(5,239	)		(7,624	)		–			–
Treasury stock, at cost		(38,347	)		(38,347	)		(38,347	)		0.0	%		0.0	%
Total Stockholders’ Equity		314,722			323,925			320,131			-2.8	%		-1.7	%

Total Liabilities and Stockholders’ Equity	$	3,473,822		$	3,599,118		$	3,849,195			-3.5	%		-9.8	%

Outstanding common shares		17,163			17,063			16,957

	Three Months Ended March 31,
	2025							2024
	Average Balance		Interest Earned/Paid		Average Yield/Rate (3)			Average Balance		Interest Earned/Paid		Average Yield/Rate (3)
	(Dollars in thousands)
Interest-earning assets:
Loans Receivable ⁽⁴⁾⁽⁵⁾	$	2,994,529	$	38,927		5.27	%	$	3,299,938	$	43,722		5.30	%
Investment Securities		117,205		1,529		5.22	%		96,226		1,280		5.32	%
Other Interest-earning assets ⁽⁶⁾		331,808		3,736		4.57	%		303,291		4,283		5.65	%
Total Interest-earning assets		3,443,542		44,192		5.20	%		3,699,455		49,285		5.33	%
Non-interest-earning assets		125,974							125,480
Total assets	$	3,569,516						$	3,824,935
Interest-bearing liabilities:
Interest-bearing demand accounts	$	560,565	$	2,369		1.71	%	$	560,190	$	2,230		1.59	%
Money market accounts		394,282		3,049		3.14	%		369,096		3,027		3.28	%
Savings accounts		252,227		151		0.24	%		277,731		166		0.24	%
Certificates of Deposit		1,005,669		10,762		4.34	%		1,239,807		14,983		4.83	%
Total interest-bearing deposits		2,212,743		16,331		2.99	%		2,446,824		20,406		3.34	%
Borrowed funds		488,418		5,856		4.86	%		510,503		5,736		4.49	%
Total interest-bearing liabilities		2,701,161		22,187		3.33	%		2,957,327		26,142		3.54	%
Non-interest-bearing liabilities		543,660							552,959
Total liabilities		3,244,821							3,510,286
Stockholders’ equity		324,695							314,649
Total liabilities and stockholders’ equity	$	3,569,516						$	3,824,935
Net interest income			$	22,005						$	23,143
Net interest rate spread⁽¹⁾						1.87	%						1.79	%
Net interest margin⁽²⁾						2.59	%						2.50	%

(1) Net interest rate spread represents the difference between the average yield on average interest-earning assets and the average cost of average interest-bearing liabilities.
(2) Net interest margin represents net interest income divided by average total interest-earning assets.
(3) Annualized.
(4) Excludes allowance for credit losses.
(5) Includes non-accrual loans.
(6) Includes Federal Home Loan Bank of New York Stock.

	Financial Condition data by quarter
	Q1 2025			Q4 2024			Q3 2024			Q2 2024			Q1 2024

	(In thousands, except book values)
Total assets	$	3,473,822		$	3,599,118		$	3,613,770		$	3,793,941		$	3,849,195
Cash and cash equivalents		252,750			317,282			243,123			326,870			352,448
Securities		125,853			111,189			108,302			94,965			96,189
Loans receivable, net		2,917,610			2,996,259			3,087,914			3,161,925			3,226,877
Deposits		2,686,508			2,750,858			2,724,580			2,935,239			2,991,659
Borrowings		448,523			498,322			533,466			510,710			510,573
Stockholders’ equity		314,722			323,925			328,113			320,732			320,131
Book value per common share¹	$	16.87		$	17.54		$	17.50		$	17.17		$	17.24
Tangible book value per common share²	$	16.56		$	17.23		$	17.19		$	16.86		$	16.93

	Operating data by quarter
	Q1 2025			Q4 2024			Q3 2024			Q2 2024			Q1 2024
	(In thousands, except for per share amounts)
Net interest income	$	22,005		$	22,194		$	23,045		$	23,639		$	23,143
Provision for credit losses		20,845			4,154			2,890			2,438			2,088
Non-interest income (loss)		1,791			938			3,127			(3,234	)		2,109
Non-interest expense		14,660			14,367			13,929			13,987			14,838
Income tax (benefit) expense		(3,385	)		1,339			2,685			1,163			2,460
Net (loss) income	$	(8,324	)	$	3,272		$	6,668		$	2,817		$	5,866
Net (loss) income per diluted share	$	(0.51	)	$	0.16		$	0.36		$	0.14		$	0.32
Common Dividends declared per share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.16

	Financial Ratios(3)
	Q1 2025			Q4 2024			Q3 2024			Q2 2024			Q1 2024
Return on average assets		(0.95	%)		0.36	%		0.72	%		0.30	%		0.61	%
Return on average stockholders’ equity		(10.40	%)		4.04	%		8.29	%		3.52	%		7.46	%
Net interest margin		2.59	%		2.53	%		2.58	%		2.60	%		2.50	%
Stockholders’ equity to total assets		9.06	%		9.00	%		9.08	%		8.45	%		8.32	%
Efficiency Ratio⁴		61.61	%		62.11	%		53.22	%		68.55	%		58.76	%

	Asset Quality Ratios
	Q1 2025			Q4 2024			Q3 2024			Q2 2024			Q1 2024
	(In thousands, except for ratio %)
Non-Accrual Loans	$	99,833		$	44,708		$	35,330		$	32,448		$	22,241
Non-Accrual Loans as a % of Total Loans		3.36	%		1.48	%		1.13	%		1.01	%		0.68	%
ACL as % of Non-Accrual Loans		51.6	%		77.8	%		98.2	%		108.6	%		155.4	%
Individually Analyzed Loans		122,517			83,399			66,048			60,798			65,731
Classified Loans		251,989			152,714			98,316			87,033			97,739

(1) Calculated by dividing stockholders’ equity, less preferred equity, to shares outstanding.
(2) Calculated by dividing tangible stockholders’ common equity, a non-GAAP measure, by shares outstanding. Tangible stockholders’ common equity is stockholders’ equity less goodwill and preferred stock. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”
(3) Ratios are presented on an annualized basis, where appropriate.
(4) The Efficiency Ratio, a non-GAAP measure, was calculated by dividing non-interest expense by the total of net interest income and non-interest income. See “Reconciliation of GAAP to Non-GAAP Financial Measures by quarter.”

	Recorded Investment in Loans Receivable by quarter
	Q1 2025			Q4 2024			Q3 2024			Q2 2024			Q1 2024
	(In thousands)
Residential one-to-four family	$	232,456		$	239,870		$	241,050		$	242,706		$	244,762
Commercial and multi-family		2,221,218			2,246,677			2,296,886			2,340,385			2,392,970
Construction		118,779			135,434			146,471			173,207			180,975
Commercial business		330,358			342,799			371,365			375,355			378,073
Home equity		66,479			66,769			67,566			66,843			65,518
Consumer		2,271			2,235			2,309			2,053			2,847
	$	2,971,561		$	3,033,784		$	3,125,647		$	3,200,549		$	3,265,145
Less:
Deferred loan fees, net		(2,467	)		(2,736	)		(3,040	)		(3,381	)		(3,705	)
Allowance for credit losses		(51,484	)		(34,789	)		(34,693	)		(35,243	)		(34,563	)

Total loans, net	$	2,917,610		$	2,996,259		$	3,087,914		$	3,161,925		$	3,226,877

	Non-Accruing Loans in Portfolio by quarter
	Q1 2025			Q4 2024			Q3 2024			Q2 2024			Q1 2024
	(In thousands)
Residential one-to-four family	$	1,138		$	1,387		$	410		$	350		$	429
Commercial and multi-family		89,296			32,974			27,693			27,796			12,627
Construction		586			586			586			586			3,225
Commercial business		8,374			9,530			6,498			3,673			5,916
Home equity		439			231			123			43			44
Consumer		–			–			20			–			–
Total:	$	99,833		$	44,708		$	35,330		$	32,448		$	22,241

	Distribution of Deposits by quarter
	Q1 2025			Q4 2024			Q3 2024			Q2 2024			Q1 2024
	(In thousands)
Demand:
Non-Interest Bearing	$	542,620		$	520,387		$	528,089		$	523,816		$	531,112
Interest Bearing		537,468			553,731			527,862			549,239			552,295
Money Market		405,793			395,004			366,655			371,689			361,791
Sub-total:	$	1,485,881		$	1,469,122		$	1,422,606		$	1,444,744		$	1,445,198
Savings and Club		254,732			252,491			255,115			258,680			272,051
Certificates of Deposit		945,895			1,029,245			1,046,859			1,231,815			1,274,410
Total Deposits:	$	2,686,508		$	2,750,858		$	2,724,580		$	2,935,239		$	2,991,659

	Reconciliation of GAAP to Non-GAAP Financial Measures by quarter

	Tangible Book Value per Share
	Q1 2025			Q4 2024			Q3 2024			Q2 2024			Q1 2024
	(In thousands, except per share amounts)
Total Stockholders’ Equity	$	314,722		$	323,925		$	328,113		$	320,732		$	320,131
Less: goodwill		5,253			5,253			5,253			5,253			5,253
Less: preferred stock		25,243			24,723			29,763			28,403			27,733
Total tangible common stockholders’ equity		284,226			293,949			293,097			287,076			287,145
Shares common shares outstanding		17,163			17,063			17,048			17,029			16,957
Book value per common share	$	16.87		$	17.54		$	17.50		$	17.17		$	17.24
Tangible book value per common share	$	16.56		$	17.23		$	17.19		$	16.86		$	16.93

	Efficiency Ratios
	Q1 2025			Q4 2024			Q3 2024			Q2 2024			Q1 2024
	(In thousands, except for ratio %)
Net interest income	$	22,005		$	22,194		$	23,045		$	23,639		$	23,143
Non-interest income (loss)		1,791			938			3,127			(3,234	)		2,109
Total income		23,796			23,132			26,172			20,405			25,252
Non-interest expense		14,660			14,367			13,929			13,987			14,838
Efficiency Ratio		61.61	%		62.11	%		53.22	%		68.55	%		58.76	%

Contact:	Michael Shriner, President & CEO Jawad Chaudhry, EVP & CFO (201) 823-0700

The MIL Network –

April 23, 2025

MIL-OSI: Teads Celebrates Major Milestone as CTV HomeScreen Powers 1,500 Campaigns

Source: GlobeNewswire (MIL-OSI)

NEW YORK, April 22, 2025 (GLOBE NEWSWIRE) — The new Teads (NASDAQ: OB), the omnichannel outcomes platform for the open internet, today announced a significant milestone for CTV HomeScreen (formerly CTV Native), an immersive way for advertisers to reach audiences on exclusive experiences at incremental moments of high attention. Since its launch in 2023, 1,500 CTV HomeScreen campaigns have been run by premium brands globally, including Cartier, Nestlé, and Air France.

As brands prioritize omnichannel strategies, CTV HomeScreen enables advertisers to place content directly on the first screen consumers see when turning on their connected televisions. By integrating within the operating systems of major television manufacturers such as LG and Hisense, Teads’ CTV HomeScreen ads provide brands with access to audiences that may not otherwise be reachable through ad-supported tiers on streaming platforms. CTV HomeScreen ads deliver high levels of attention through impactful, unique creative experiences. Teads’ programmatic advertiser platform, Teads Ad Manager (TAM) enables brands to connect the moments of the consumer journey across all screens — creating a continuity of advertising experiences from CTV to web and app.

“By placing high-impact native ads directly on smart TV home screens, we provide brands with premium, brand-safe placements that capture superior attention at the moment of content discovery,” said Jeremy Arditi, Co-President, Chief Business Officer of the Americas. “This approach ensures brands own the first moment on TV screens, maximizing both visibility and engagement in an uncluttered environment.”

Over the past year, Teads has strengthened its CTV offering through expanded access to premium HomeScreen inventory, including exclusive partnerships with VIDAA US and LG Ad Solutions covering 330 million TV screens worldwide, in over 50 countries. In addition to Homescreen, TAM enables advertisers to reach audiences across more than 7,000 CTV apps globally, optimizing performance through CTV instream video campaigns.

“The partnership between LG and Teads unlocks a powerful value proposition for advertisers,” said Serge Matta, President of Global Ad Sales at LG Ad Solutions. “From the moment a viewer powers on their TV, they’re met with stunning creatives, brought to life by Teads. It’s a seamless blend of innovation and scale.”

Capturing Audience Attention at Scale

CTV HomeScreen placements are displayed on the first screen viewers see when they turn on their smart TVs. This enhances ad effectiveness and extends audience reach beyond traditional commercial breaks. According to TVision (2024), viewers often spend time browsing for content—up to 10 minutes—before encountering ad clutter, making this window a high-attention moment. In fact, 74% of attention goes to the first ad seen on the home screen.

In 1,500 CTV HomeScreen campaigns, Teads has helped brands like Cartier, Nestlé, Air France, Bvlgari, and Nissan deliver impactful moments that drive measurable engagement. Cartier’s first-ever 3D CTV HomeScreen campaign generated over 12 million impressions, while Air France saw a 22% increase in recommendation intent by securing premium placements on Smart TV home screens. In addition, Nestlé achieved a 9% lift in ad recall, leveraging Teads’ high-attention CTV HomeScreen formats to enhance brand impact.

“This initiative showcases how advertising innovation and precise data can strengthen brand image and consumer engagement. Teads’support in this campaign allowed us to combine exclusive formats with rigorous measurement, demonstrating real value for the brand,” said Catherine Masson, Director of Brand Media Strategy and Media Buying at Air France.

Now Available in Teads Ad Manager

Brands can now seamlessly combine CTV HomeScreen with mobile and desktop formats within a single buying platform, making it easier to plan, execute, and optimize omnichannel campaigns and ensuring a more cohesive, data-driven approach to audience engagement.

With real-time attention measurement, contextual targeting, and planning and insight tools, Teads Ad Manager offers advertisers an all-in-one solution to maximize impact across every screen. This latest integration reflects Teads’ commitment to future-proofing CTV advertising by delivering premium placements, innovative ad formats, and advanced measurement tools.

Teads was recently announced as a finalist in the Best CTV Ad Tech Platform category by the Digiday Streaming and Video Awards. For more information on Teads’ CTV HomeScreen solutions, visit https://thenewteads.com/.

About The New Teads
Outbrain Inc. (Nasdaq: OB) and Teads S.A. combined on February 3, 2025 and are operating under the new Teads brand. The new Teads is the omnichannel outcomes platform for the open internet, driving full-funnel results for marketers across premium media. With a focus on meaningful business outcomes, the combined company ensures value is driven with every media dollar by leveraging predictive AI technology to connect quality media, beautiful brand creative, and context-driven addressability and measurement. One of the most scaled advertising platforms on the open internet, the new Teads is directly partnered with more than 10,000 publishers and 20,000 advertisers globally. The company is headquartered in New York, with a global team of nearly 1,800 people in 36 countries.

For more information, visit https://thenewteads.com/.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. Forward-looking statements may include, without limitation, statements generally relating to possible or assumed future results of our business, financial condition, results of operations, liquidity, plans and objectives, and statements relating to our recently completed acquisition (the “Acquisition”) of TEADS, a private limited liability company (société anonyme) incorporated and existing under the laws of the Grand Duchy of Luxembourg (“Teads”). You can generally identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “guidance,” “outlook,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “foresee,” “potential” or “continue” or the negative of these terms or other similar expressions that concern our expectations, strategy, plans or intentions or are not statements of historical fact. We have based these forward- looking statements largely on our expectations and projections regarding future events and trends that we believe may affect our business, financial condition, and results of operations. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors including, but not limited to: the ability of Outbrain to successfully integrate Teads or manage the combined business effectively; our ability to realize anticipated benefits and synergies of the Acquisition, including, among other things, operating efficiencies, revenue synergies and other cost savings; our due diligence investigation of Teads may be inadequate or risks related to Teads’ business may materialize; unexpected costs, charges or expenses resulting from the Acquisition; the outcome of any securities litigation, stockholder derivative or other litigation related to the Acquisition; our ability to raise additional financing in the future to fund our operations, which may not be available to us on favorable terms or at all; the volatility of the market price of our common stock and any drop in the market price of our common stock following the Acquisition; our ability to attract and retain customers, management and other key personnel; overall advertising demand and traffic generated by our media partners; factors that affect advertising demand and spending, such as the continuation or worsening of unfavorable economic or business conditions or downturns, instability or volatility in financial markets, and other events or factors outside of our control, such as tariffs and trade wars, U.S. and global recession concerns, geopolitical concerns, including the ongoing war between Ukraine-Russia and conditions in Israel and the Middle East, supply chain issues, inflationary pressures, labor market volatility, bank closures or disruptions, the impact of challenging economic conditions, political and policy changes or uncertainties in connection with the new U.S. presidential administration, and other factors that have impacted and may further impact advertisers’ ability to pay; our ability to continue to innovate, and adoption by our advertisers and media partners of our expanding solutions; the potential impact of artificial intelligence (“AI”) on our industry and our need to invest in AI-based solutions; the success of our sales and marketing investments, which may require significant investments and may involve long sales cycles; our ability to grow our business and manage growth effectively; our ability to compete effectively against current and future competitors; the loss or decline of one or more of our large media partners, and our ability to expand our advertiser and media partner relationships; conditions in Israel, including the sustainability of the recent cease-fire between Israel and Hamas and any conflicts with other terrorist organizations or countries; our ability to maintain our revenues or profitability despite quarterly fluctuations in our results, whether due to seasonality, large cyclical events, or other causes; the risk that our research and development efforts may not meet the demands of a rapidly evolving technology market; any failure of our recommendation engine to accurately predict attention or engagement, any deterioration in the quality of our recommendations or failure to present interesting content to users or other factors which may cause us to experience a decline in user engagement or loss of media partners; limits on our ability to collect, use and disclose data to deliver advertisements; our ability to extend our reach into evolving digital media platforms; our ability to maintain and scale our technology platform; our ability to meet demands on our infrastructure and resources due to future growth or otherwise; our failure or the failure of third parties to protect our sites, networks and systems against security breaches, or otherwise to protect the confidential information of us or our partners; outages or disruptions that impact us or our service providers, resulting from cyber incidents, or failures or loss of our infrastructure; significant fluctuations in currency exchange rates; political and regulatory risks in the various markets in which we operate; the challenges of compliance with differing and changing regulatory requirements, including with respect to privacy; the timing and execution of any cost-saving measures and the impact on our business or strategy; and the risks described in the section entitled “Risk Factors” and elsewhere in the Annual Report on Form 10-K filed for the year ended December 31, 2024and in subsequent reports filed with the SEC. Accordingly, you should not rely upon forward-looking statements as an indication of future performance. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or will occur, and actual results, events, or circumstances could differ materially from those projected in the forward-looking statements. The forward-looking statements made in this press release relate only to events as of the date on which the statements are made. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. We undertake no obligation and do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or circumstances after the date on which the statements are made or to reflect the occurrence of unanticipated events or otherwise, except as required by law.

Media Contact

press@outbrain.com

Investor Relations Contact

IR@outbrain.com

(332) 205-8999

The MIL Network –

April 23, 2025

MIL-OSI United Kingdom: UK-Ukraine TechBridge Industry Third Steering Board Communiqué

Source: United Kingdom – Executive Government & Departments

News story

UK-Ukraine TechBridge Industry Third Steering Board Communiqué

The Industry Steering Board for UK-Ukraine TechBridge met on 20 March 2025.

The Industry Steering Board for the UK-Ukraine TechBridge met on 20th March 2025. The meeting was hybrid with UK board members attending from techUK’s office, 10 St Bride Street, London, EC4A 4AD and Ukrainian board members from British Embassy Kyiv.

The meeting was co-chaired by Ukrainian Deputy Minister for Digital Transformation Oleksandr Bornyakov and UK Parliamentary Under-Secretary of State for Services, Small Business and Exports Gareth Thomas MP.

The Board meeting was attended by:

Vladimir	Mnogoletniy	CEO	Genesis
Valery	Krasovsky	CEO	Sigma Software
Marta	Romaniak	VP	Avenga
Andrew	Pavliv	CEO	N-iX
Liam	Maxwell	Director, Government Transformation	Amazon Web Services
Matt	Evans	Director of Markets	techUK
Eric	van der Kleij	Co-founder	EdenBase
Simon	Godfrey	Senior Director of External Engagement & Business Growth	BT

The Board reviewed progress under the UK-Ukraine TechBridge initiative over the last six months, noting key achievements such as the significant investment generated by Ukrainian SMEs who developed their knowledge of UK markets during participation in the UK-Ukraine TechBridge Investment Accelerator.

The discussions focused on fostering deeper UK-Ukraine collaboration in technology while exploring opportunities for strengthening public-private partnerships. Core themes addressed included:

Enhancing connections between UK and Ukrainian businesses.
Driving investment and trade through platforms like Code.UA.
Promoting technology innovations through future TechBridge events.

Deputy Minister Bornyakov shared plans for Ukrainian representation at London Tech Week, including a Ukraine Pavilion.

Follow-up actions were identified, including preparations for London Tech Week and Lviv IT Arena, promotion of Code.UA as a platform for connecting UK businesses with Ukrainian IT companies, and facilitating sponsorships for upcoming events. The Board remains committed to leveraging the UK-Ukraine TechBridge to drive innovation, trade, and investment.

The Board will reconvene within the next six months.

Published 22 April 2025

MIL OSI United Kingdom –

April 22, 2025

MIL-OSI United Kingdom: UK-Ukraine TechBridge Industry Second Steering Board Communiqué

Source: United Kingdom – Executive Government & Departments

News story

UK-Ukraine TechBridge Industry Second Steering Board Communiqué

The Industry Steering Board for UK-Ukraine TechBridge met on 20 March 2025.

The Industry Steering Board for the UK-Ukraine TechBridge met on 20th March 2025. The meeting was hybrid with UK board members attending from techUK’s office, 10 St Bride Street, London, EC4A 4AD and Ukrainian board members from British Embassy Kyiv.

The meeting was co-chaired by Ukrainian Deputy Minister for Digital Transformation Oleksandr Bornyakov and UK Parliamentary Under-Secretary of State for Services, Small Business and Exports Gareth Thomas MP.

The Board meeting was attended by:

Vladimir	Mnogoletniy	CEO	Genesis
Valery	Krasovsky	CEO	Sigma Software
Marta	Romaniak	VP	Avenga
Andrew	Pavliv	CEO	N-iX
Liam	Maxwell	Director, Government Transformation	Amazon Web Services
Matt	Evans	Director of Markets	techUK
Eric	van der Kleij	Co-founder	EdenBase
Simon	Godfrey	Senior Director of External Engagement & Business Growth	BT

The Board reviewed progress under the UK-Ukraine TechBridge initiative over the last six months, noting key achievements such as the significant investment generated by Ukrainian SMEs who developed their knowledge of UK markets during participation in the UK-Ukraine TechBridge Investment Accelerator.

The discussions focused on fostering deeper UK-Ukraine collaboration in technology while exploring opportunities for strengthening public-private partnerships. Core themes addressed included:

Enhancing connections between UK and Ukrainian businesses.
Driving investment and trade through platforms like Code.UA.
Promoting technology innovations through future TechBridge events.

Deputy Minister Bornyakov shared plans for Ukrainian representation at London Tech Week, including a Ukraine Pavilion.

Follow-up actions were identified, including preparations for London Tech Week and Lviv IT Arena, promotion of Code.UA as a platform for connecting UK businesses with Ukrainian IT companies, and facilitating sponsorships for upcoming events. The Board remains committed to leveraging the UK-Ukraine TechBridge to drive innovation, trade, and investment.

The Board will reconvene within the next six months.

Published 22 April 2025

MIL OSI United Kingdom –

April 22, 2025

MIL-OSI Economics: ASEAN and United States reaffirm commitment to strengthen Comprehensive Strategic Partnership

Source: ASEAN

Siem Reap, 22 April 2025 – Senior Officials of ASEAN and the United States (U.S.) reaffirmed their commitment to further advance their Comprehensive Strategic Partnership at the 37th ASEAN-U.S. Dialogue held today in Siem Reap, Cambodia.

Both sides took stock of the progress made in ASEAN-U.S. cooperation across all three pillars of the ASEAN Community and noted with satisfaction the robust implementation of all measures under the Plan of Action to Implement the ASEAN-United States Strategic Partnership (2021-2025) and its Annex ahead of their expiration at the end of 2025.

The U.S. reiterated its support for ASEAN Community-building efforts and ASEAN’s central role in the evolving regional architecture. ASEAN looked forward to enhancing practical cooperation in the priority areas under the AOIP and encouraged the U.S.’ continued constructive role in promoting dialogue for regional peace, security and stability through its participation in various ASEAN-led mechanisms. Both sides looked forward to enhanced cooperation in the areas of transnational crime, including combatting drug trafficking and online scam; defence; counterterrorism; and cybersecurity.

Valuing the U.S. as one of ASEAN’s largest trading partners and its largest source of foreign direct investment, ASEAN expressed its intention to engage the U.S. in a constructive dialogue to address trade-related concerns and maintain strong and mutually beneficial trade relations with the U.S. ASEAN is also committed to exploring avenues to work with the U.S., including through existing economic platforms such as the ASEAN-U.S. Trade and Investment Framework Arrangement, the Expanded Economic Engagement Work Plan, as well as dialogue and engagement between the ASEAN Economic Ministers and the U.S. Trade Representative to explore mutually acceptable solutions of common interest. ASEAN welcomed deeper collaboration with the U.S. across strategic, high-value sectors, including digital services and knowledge industries, food and agriculture, green technology, advanced manufacturing, healthcare, and transport. ASEAN also looked forward to the U.S.’ sustained support for the ASEAN Single Window, ASEAN Power Grid, and ASEAN Digital Economy Framework Agreement (DEFA).

Acknowledging the strong people-to-people linkages between ASEAN and the U.S., both sides looked forward to further harnessing the linkages, including through the continuation of the Fulbright U.S.-ASEAN Visiting Scholar Program, Young Southeast Asian Leaders Initiative, International Visitors Leadership Program and other emerging leadership programmes. The Senior Officials also commended the important role of the ASEAN-U.S. Center in Washington, D.C. in promoting awareness of ASEAN in the U.S.

Both sides also exchanged views on regional and international issues of common interest and concern, including the situations in Myanmar, South China Sea, Korean Peninsula, Middle East and Ukraine. They agreed to enhance collaboration in addressing security challenges and promote peace, stability and prosperity in the region and beyond.

Secretary of State and the ASEAN Senior Officials’ Meeting (SOM) Leader of Cambodia, Kung Phoak, and Senior Bureau Official for the Bureau of East Asian and Pacific Affairs of the U.S. Department of State and Acting U.S. SOM Leader, Sean O’Neill, co-chaired the Dialogue. Senior Officials of ASEAN Member States, the Deputy Secretary-General of ASEAN for ASEAN Political-Security Community, and their respective delegations were in attendance. Timor-Leste participated as Observer.

*****
photo credit: ASEAN Secretariat
The post ASEAN and United States reaffirm commitment to strengthen Comprehensive Strategic Partnership appeared first on ASEAN Main Portal.

MIL OSI Economics –

April 22, 2025

MIL-OSI USA: Photos: Kaine Highlights Need to Continue Support for America’s Alliances on Official Visits to Poland, Ukraine, and Germany

US Senate News:

Source: United States Senator for Virginia Tim Kaine
WASHINGTON, D.C. – U.S. Senator Tim Kaine, a member of the Senate Foreign Relations and Armed Services Committees, concluded a week-long trip of official visits in Poland, Ukraine, and Germany to highlight his support for America’s transatlantic partnerships and Ukraine’s fight against Russia’s brutal invasion. The visit came amid Russia’s horrific Palm Sunday attack on the Ukrainian town of Sumy, which killed dozens of innocent civilians, including children; global fallout from the Trump Administration’s chaotic tariff regime that not only punishes allies, but also severely inhibits defense cooperation; and reported plans to shrink America’s diplomatic presence abroad—even as China moves to expand its own footprint.
“America has always been strongest and safest when we link arms with our allies. I traveled to Poland, Ukraine, and Germany this week to highlight the importance of that principle, especially in the face of Russia’s continued illegal invasion of Ukraine. Putin’s horrific Palm Sunday attack in Sumy was a disturbing—yet unsurprising—sign that Russia is not negotiating in good faith to stop the fighting. It’s more important than ever that we strengthen our relationships across the Atlantic. I know that I have colleagues on both sides of the aisle who see how the Trump Administration’s chaotic tariff regime and insulting comments about our friends abroad make that harder, and will keep doing all that I can to urge them to stand up for the alliances that keep America safe.”
Photos of Kaine’s trip are available here.
Kaine traveled to Poland to:
Meet U.S. servicemembers stationed at the Logistical Support Area (LSA) in Jasionka, which has played a critical role in delivering security assistance to Ukraine since 2022.
Visit Remote Maintenance Distribution Cell-Ukraine, a U.S. Army sustainment initiative that provides direct maintenance and repair support to the Ukrainian Armed Forces.
Meet with Rzeszów Mayor Konrad Fijolek. Rzeszów was given the distinction of “Rescuer City” by President Zelenskyy in honor of the humanitarianism, charity, and solidarity it has offered the Ukrainian people. Kaine is a former mayor and the meeting provided an opportunity to reaffirm U.S.-Polish cooperation on regional security, especially at the local level.
Meet with Head of the National Security Bureau Lt. General Dariusz Lukowski, Foreign Minister Radoslaw Sikorski, and Defense Minister Wladyslaw Kosiniak-Kamysz to discuss support for Ukraine and NATO.
Visit the POLIN Museum, which is dedicated to telling the history of Jewish life in Poland, including the Warsaw Ghetto Uprising Movement of 1943, in which Jewish insurgents in the Nazi-created ghetto resisted German troops and police who entered it to deport its surviving inhabitants.
Then, Kaine traveled to Ukraine to:
Meet with David Arakhamia, a leader of the Servant of the People political party in the Verkhovna Rada, and Sergiv Boyev, Deputy Minister of Defense for European Integration.
Visit wounded Ukrainian veterans undergoing rehabilitation treatment at a NextStep Ukraine facility. NextStep Ukraine offers prosthetics, brain and spinal cord injury rehabilitation to veterans. The organization receives U.S. funding.
Tour the Kyiv Combined Heat and Power Plant No. 5, a major infrastructure site that supplies both electricity and heat to five districts of the city, to highlight U.S. support for energy infrastructure in Ukraine. The facility was severely impacted by Russian missile strikes in October 2022 and again in March 2023. USAID provided the funding and expertise to restore the plant’s operations.
Lay flowers at the Bucha Memorial that honors the civilians and prisoners of war killed by Russian forces during their occupation of the town in early 2022.
Lay flowers at the Wall of Remembrance of the Fallen for Ukraine, which honors the lives of thousands of soldiers and volunteers who have died defending Ukraine. The Wall of Remembrance was created through a collaboration between the Ukrainian Orthodox Church of the Kyiv Patriarchate, the National Military History Museum, and civic memory organizations.
Visit the site of the 1941 massacre at Babyn Yar, a ravine near Kyiv.
Meet with Ukrainian Helsinki Human Rights Union, a leading civil society coalition dedicated to promoting and protecting human rights in Ukraine and pursuing accountability for Russian war crimes.
Then, Kaine traveled to Germany to:
Meet with Norbert Röttgen, a member of the German Bundestag who has long led on German foreign affairs issues; Deputy Director-General of the German Ministry of Defense Major General Stefan Schulz; and the German State Secretary at the Ministry of Foreign Affairs Susanne Baumann.
Visit the Memorial to the Murdered Jews of Europe, a place of remembrance and commemoration for the six million Jewish victims of the Holocaust.
Visit United States European Command Headquarters in Stuttgart.
Visit U.S. servicemembers assigned to United States Air Force Europe and Special Operations Command Europe in Ramstein.

MIL OSI USA News –

April 22, 2025

MIL-OSI China: Ukraine to hold peace talks with UK, France, US

Source: China State Council Information Office

Ukrainian President Volodymyr Zelensky announced on Monday that Ukraine will hold peace talks with the United Kingdom, France, and the United States in London on Wednesday.

“Already this Wednesday, our representatives will be working in London,” Zelensky wrote on social media platform X after phone talks with UK Prime Minister Keir Starmer.

“We are ready to move forward as constructively as possible, just as we have done before, to achieve an unconditional ceasefire, followed by the establishment of a real and lasting peace,” he said.

The president emphasized that an unconditional ceasefire must be the first step toward peace.

Zelensky also noted that he and Starmer discussed joint work within European security formats.

MIL OSI China News –

April 22, 2025

MIL-OSI New Zealand: New Zealand announces extended support for Ukraine

Source: New Zealand Government

Prime Minister Christopher Luxon today announced New Zealand is extending its military assistance in support of Ukraine’s self-defence.
“New Zealand is unwavering in its support for Ukraine against Russia’s illegal and unprovoked invasion. That is why we are extending our deployment of up to 100 New Zealand Defence Force personnel to train Ukrainian soldiers in the UK and throughout Europe, and provide intelligence, liaison and logistics support through to December 2026,” Mr Luxon says.
“Today’s announcement signals New Zealand’s ongoing commitment to Ukraine in the face of Russia’s aggression, and brings the total value of New Zealand support to $152 million in financial assistance and in-kind support to Ukraine.”
“We are aware that the situation in Ukraine remains dynamic,” Foreign Affairs Minister Winston Peters says. “New Zealand welcomes efforts to achieve a just and lasting peace, and is following the negotiations on a potential ceasefire very closely. New Zealand is also actively involved in the UK-led discussions on options for peace support if the conflict concludes.”
“During the past three years, NZDF personnel have been on the ground in Europe working with like-minded partner countries to support Ukraine. This deployment is a visible and highly valued use of our skilled personnel,” Defence Minister Judith Collins says.
“This is what our people train and sign up for. I have seen first hand the value of what they are providing to the people of Ukraine, and I am justifiably proud of New Zealand’s contribution.”
Notes
Alongside our partners, this operation has trained over 53,000 Ukrainian Armed Forces personnel so far.
From July 2024 NZDF support evolved to match the changing needs of Ukraine and its partners. Under the 2025/2026 mandate, personnel continue to conduct specialised training throughout Europe in combat casualty care, combat engineering, leadership and maritime explosive ordnance disposal training.
Since Russia’s invasion of Ukraine on 24 February 2022, New Zealand has pledged over $152 million in financial assistance and in-kind support to Ukraine, including:

Support for military training, equipment, and material valued at $102.3 million, including NZDF personnel deployed to Europe.
$31.9 million in humanitarian assistance to conflict-affected Ukrainian communities in Ukraine and in neighbouring countries.
$5.2 million in support for international legal processes and human rights monitoring.

Last year alone, the New Zealand Government announced two packages worth NZ$41.9 million as part of our ongoing support to Ukraine. The 2024 packages include:

An extension and evolution of NZDF deployments, which have included delivering training for the Armed Forces of Ukraine in the UK and across Europe, as well as intelligence, logistics, and liaison support.
Additional sanctions through New Zealand’s first unilateral sections regime, the Russia Sanctions Act.
New funding for military equipment and humanitarian aid.

MIL OSI New Zealand News –

April 22, 2025

MIL-OSI United Kingdom: UK to step up military partnership with New Zealand as both countries drive forward defence and security agenda

Source: United Kingdom – Government Statements

Press release

UK to step up military partnership with New Zealand as both countries drive forward defence and security agenda

The UK is set to deepen defence and security ties with New Zealand as the Prime Minster strengthens alliances abroad to protect Britain’s national interest.

Prime Minister Keir Starmer and New Zealand Prime Minister Christopher Luxon set to step up support for Ukraine with new drone contract and extension to Operation Interflex
Comes as leaders agree to deepen defence and security ties, with the Royal New Zealand Navy preparing to join the UK’s Carrier Strike Group as it heads to the Indo-Pacific
Leaders also expected to discuss the importance of growth and free trade for economic and national security

The UK is set to deepen defence and security ties with New Zealand as the Prime Minster strengthens alliances abroad to protect Britain’s national interest.

Prime Minister Keir Starmer will host New Zealand Prime Minister Christopher Luxon this morning, with the leaders visiting the training of Ukrainian forces by the UK and New Zealand military as part of Operation Interflex. The visit follows the two leaders meeting at the Commonwealth Heads of Government Meeting in Samoa last year.

New Zealand trainers have worked alongside British counterparts to help train more than 54,000 soldiers on Operation Interflex, and New Zealand are expected to today confirm that they will extend their support for the initiative in the UK until the end of the year.

In addition to their support for training Ukrainian troops, military planners from the New Zealand Defence Force are contributing to the latest thinking and plans for post-conflict support for Ukraine through the Coalition of the Willing.

Prime Minister Starmer will also announce UK contracts worth £30m for drones produced by SYOS Aerospace, a New Zealand uncrewed vehicle manufacturer based in Hampshire to support Ukraine.

The contract has created 45 jobs at the manufacturing facility based in Fareham, Hampshire, and supports a further nine UK based companies with subcontracts – delivering on the government’s Plan for Change through both growth and security.

During the visit to see the training first hand, the leaders are expected to discuss plans to further step up defence and security cooperation, with defence ministers being instructed to work on a new joint defence partnership between both countries to ensure the relationship is fit for the twenty-first century.

The new arrangement, which will succeed the one signed in 2015, comes after both the UK and New Zealand increased defence spending to 2.5% and 2% of GDP respectively. It will also recognise the vital partnership between the UK and New Zealand in upholding stability and security across Europe, the Middle East and the Indo-Pacific.

That includes through the involvement of Royal New Zealand Navy frigate, HMNZS Te Kaha, which will join the UK Carrier Strike Group, which leaves Portsmouth today, in the Indian Ocean.

Prime Minister Keir Starmer said:

“Only by working with our friends and allies and protecting our national security will we be able to deliver on our Plan for Change, putting money back in the pockets of working people through highly skilled jobs – such as those we have announced today – a strong and resilient economy, and greater opportunity.

“From the beaches of Gallipoli, to the vital work we have been doing together on Operation Interflex and our support for Ukraine, the UK and New Zealand have stood shoulder-to-shoulder for generations in pursuit of peace and stability.

“As the world becomes an increasingly dangerous place, I am proud how much we are doing together to support our national and economic security – stepping up our defence spending, deploying our navies together in the Indo-Pacific, and continuing our work to put Ukraine in the strongest possible position to deter an increasingly aggressive Russia.”

Following the visit to Interflex training in the South West of England, the leaders will return to Downing Street to discuss how both countries can work together to drive growth, deliver on the government’s Plan for Change, and put money back in the pockets of working people.

That will include increasing ambition on free and open trade, including through the global Comprehensive and Progressive Trans-Pacific Partnership and New Zealand and the UK’s landmark Free Trade Agreement.

Total trade in goods and services between the UK and New Zealand was £3.6 billion in 12 months to September 2024 an increase of 5.3%, or £179 million in current prices, from 12 months leading up to September 2023.

It comes after Scottish firm Emergency One won a global competition to supply emergency vehicles to Fire and Emergency New Zealand (FENZ). Through the ten-year contract, East Ayrshire based Emergency One will replace 186 vehicles for New Zealand’s first responders, supporting 25 new jobs in Scotland.

The UK and New Zealand are also deepening collaboration in the agriculture technology sector. A new Investor Partnership deal will see New Zealand investment in British small and medium enterprises to develop cutting edge equipment supporting growth, farming sustainability and food security.

Published 21 April 2025

MIL OSI United Kingdom –

April 22, 2025

MIL-OSI: TrustCo Reports First Quarter 2025 Net Income of $14.3 Million From Repricing Loan Portfolio and Well-Managed Cost of Funds

Source: GlobeNewswire (MIL-OSI)

Executive Snapshot:

Bank-wide financial results:
- Key metrics for the first quarter 2025:
  - Net income of $14.3 million increased 17.7% compared to $12.1 million for the first quarter 2024
  - Net interest income of $40.4 million, up 10.4% from $36.6 million compared to the first quarter 2024
  - Average loans were up $104.7 million for the first quarter 2025 compared to the first quarter 2024
  - Average deposits were up $103.3 million for the first quarter 2025 compared to the first quarter 2024

Capital position and key ratios:
- Consolidated equity to assets increased to 10.85% as of March 31, 2025 from 10.51% as of March 31, 2024
- Book value per share as of March 31, 2025 was $36.16, up from $34.12 as of March 31, 2024
- Stock repurchase program announced authorizing for up to one million shares or approximately 5% of TrustCo’s current outstanding common stock

Trustco Financial Services and Wealth Management income:
- Fees increased to $2.1 million or 16.7% compared to first quarter 2024
- Assets under management increased to $1.2 billion or 17.4% compared first quarter 2024

GLENVILLE, N.Y., April 21, 2025 (GLOBE NEWSWIRE) —

TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced a robust start to 2025, marked by significant growth in both the loan and deposit portfolios of Trustco Bank during the first quarter of 2025 compared to the first quarter of 2024. This performance underscores the Bank’s commitment to serving its community through increased residential and commercial lending and adapting effectively to the evolving financial landscape. This resulted in first quarter 2025 net income of $14.3 million or $0.75 diluted earnings per share, compared to net income of $12.1 million or $0.64 diluted earnings per share for the first quarter 2024. Average loans increased $104.7 million or 2.1% for the first quarter 2025 over the same period in 2024. Average deposits increased $103.3 million or 1.9% for the first quarter 2025 over the same period in 2024.

Overview

Chairman, President, and CEO, Robert J. McCormick said “We are very pleased to announce today that tried and true Trustco Bank strategy has once again yielded exceptional results. We added loans at current market rates, which repriced our current loan portfolio higher, supporting long-term profitability. This was funded entirely by our own deposits, and we did so while holding the line on board rates. Despite aggressive market competition, we have favorably repriced our time deposits with the help of strong brand loyalty and digital engagement. These efforts yielded net income of $14.3 million and boosted all return metrics significantly year-over-year. Credit quality remains exceptional, with non-performing loans holding steady at a negligible 0.37%. The Bank also grew capital and thus maintains its position of strength. Based upon what we have seen in the first quarter, we anticipate that good things are likely in the future.”

Details

Average loans were up $104.7 million, or 2.1%, in the first quarter 2025 over the same period in 2024. Average residential loans and HECLs, our primary lending focus, were up $26.2 million, or 0.6%, and $61.0 million, or 17.3%, respectively, in the first quarter 2025 over the same period in 2024. Average commercial loans also increased $20.7 million, or 7.5%, in the first quarter 2025 over the same period in 2024. This uptick reflects a strong local economy and increased demand for credit. Average deposits were up $103.3 million, or 1.9%, for the first quarter 2025 over the same period in 2024, primarily as a result of an increase in time deposits, interest bearing checking accounts, and demand deposits. We believe the increase in these deposits compared to the same period in 2024 continues to indicate strong customer confidence in the Bank’s competitive deposit offerings. As we move forward, despite a complex economic environment, we believe that our strategic focus on relationship banking and solid financial practices has positioned us for continued success.

During the first quarter of 2025, the TrustCo announced a stock repurchase program of up to one million shares, or approximately 5% of TrustCo’s current outstanding shares of common stock. This repurchase initiative is part of the Bank’s broader capital management strategy and is intended to enhance shareholder value while maintaining flexibility to support future growth. As of March 31, 2025, our equity to asset ratio was 10.85%, compared to 10.51% as of March 31, 2024. Book value per share as of March 31, 2025 was $36.16, up 6.0% compared to $34.12 a year earlier.

Net interest income was $40.4 million for the first quarter 2025, an increase of $3.8 million, or 10.4%, compared to the first quarter of 2024, driven by loan growth at higher interest rates and less interest expense on deposit products, partially offset by lower investment interest income and a decrease in interest on federal funds sold and other short-term investments. The net interest margin for the first quarter 2025 was 2.64%, up 20 basis points from 2.44% in the first quarter of 2024. The yield on interest earnings assets increased to 4.13% in the first quarter of 2025, up 14 basis points from 3.99% in the first quarter of 2024. The cost of interest bearing liabilities decreased to 1.92% in the first quarter 2025, down from 1.99% in the first quarter 2024. As the Federal Reserve signals potential interest rate reductions in 2025, the Bank is proactively preparing to navigate the evolving rate environment. In this context, the Bank anticipates that a lower interest rate environment will provide opportunities to manage deposit costs more effectively, thereby supporting net interest margin. The Bank remains committed to maintaining competitive deposit offerings while ensuring financial stability and continued support for our communities’ banking needs.

Non-interest income increased to $5.0 million as compared to $4.8 million for the first quarter of 2024. This increase was primarily attributable to wealth management and financial services fees, which increased by 16.7% to $2.1 million, driven by strong client demand and higher assets under management. These revenues now represent 42.6% of non-interest income. The majority of this fee income is recurring, supported by long-term advisory relationships and a growing base of managed assets. Non-interest expense increased $1.4 million over the first quarter of 2024 due to increases in several areas of expenses.

Asset quality remains strong and has been consistent over the past twelve months. The Company recorded a provision for credit losses of $300 thousand in the first quarter of 2025, which is the result of a provision for credit losses on loans of $100 thousand, and a provision for credit losses on unfunded commitments of $200 thousand. The ratio of allowance for credit losses on loans to total loans was 0.99% and 0.98% as of March 31, 2025 and 2024, respectively. The allowance for credit losses on loans was $50.6 million as of March 31, 2025, compared to $49.2 million as of March 31, 2024. Nonperforming loans (NPLs) were $18.8 million as of March 31, 2025, compared to $18.3 million as of March 31, 2024. NPLs were 0.37% of total loans as of March 31, 2025 and 2024. The coverage ratio, or allowance for credit losses on loans to NPLs, was 269.8% as of March 31, 2025, compared to 269.3% as of March 31, 2024. Nonperforming assets (NPAs) were $20.9 million as of March 31, 2025, compared to $20.6 million as of March 31, 2024.

A conference call to discuss first quarter 2025 results will be held at 9:00 a.m. Eastern Time on April 22, 2025. Those wishing to participate in the call may dial toll-free for the United States at 1-833-470-1428, and for Canada at 1-833-950-0062, Access code 048251. A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, Access code 486810. The call will also be audio webcast at https://events.q4inc.com/attendee/647533404,and will be available for one year.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a $6.3 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 136 offices in New York, New Jersey, Vermont, Massachusetts, and Florida as of March 31, 2025.

In addition, the Bank’s Wealth Management Department offers a full range of investment services, retirement planning and trust and estate administration services. The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST.

Forward-Looking Statements

All statements in this news release that are not historical are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our future performance, including our expectations regarding the effects of the economic environment on our financial results, our ability to retain customers and the amount of customers’ business, including deposit balances, with us, the impact of the Federal Reserve’s actions regarding interest rates, and the anticipated effects of our capital management strategy, including our stock repurchase program. Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Such forward-looking statements are subject to factors and uncertainties that could cause actual results to differ materially for TrustCo from the views, beliefs and projections expressed in such statements, and many of the risks and uncertainties are heightened by or may, in the future, be heightened by volatility in financial markets and macroeconomic or geopolitical concerns related to inflation, changes in United States and foreign trade policy, continued elevated interest rates and ongoing armed conflicts (including the Russia/Ukraine conflict and the conflict in Israel and surrounding areas). TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo’s actual results and could cause TrustCo’s actual financial performance to differ materially from that expressed in any forward-looking statement: future changes in interest rates; external economic factors, such as changes in monetary policy, ongoing inflationary pressures and continued elevated prices; exposure to credit risk in our lending activities; our increasing commercial loan portfolio; the sufficiency of our allowance for credit losses on loans to cover actual loan losses; our ability to meet the cash flow requirements of our depositors or borrowers or meet our operating cash needs to fund corporate expansion and other activities; claims and litigation pertaining to fiduciary responsibility and lender liability; the enforcement of federal cannabis laws and regulations and its impact on our ability to provide services in the cannabis industry; our dependency upon the services of the management team; our disclosure controls and procedures’ ability to prevent or detect errors or acts of fraud; the adequacy of our business continuity and disaster recovery plans; the effectiveness of our risk management framework; the impact of any expansion by us into new lines of business or new products and services; an increase in the prevalence of fraud and other financial crimes; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; environmental, social and governance risks, as well as diversity, equity, and inclusion-related risks, and their impact on our reputation and relationships; the chance of a prolonged economic downturn, especially one affecting our geographic market area; instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the soundness of other financial institutions; U.S. government shutdowns, credit rating downgrades, or failure to increase the debt ceiling; fluctuations in the trust wealth management fees we receive as a result of investment performance; the impact of regulatory capital rules on our growth; changes in laws and regulations, including changes in cybersecurity or privacy regulations; restrictions on data collection and use; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in material fines or sanctions; changes in tax laws; limitations on our ability to pay dividends; TrustCo Realty Corp.’s ability to qualify as a real estate investment trust; changes in accounting standards; competition within our market areas; consumers and businesses’ use of non-banks to complete financial transactions; our reliance on third-party service providers; the impact of data breaches and cyber-attacks; the development and use of artificial intelligence; the impact of a failure in or breach of our operational or security systems or infrastructure, or those of third parties; the impact of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of interruptions in the effective operation of our computer systems; the impact of anti-takeover provisions in our organizational documents; the impact of the manner in which we allocate capital; and other risks and uncertainties under the heading “Risk Factors” in our most recent annual report on Form 10-K and, if any, in our subsequent quarterly reports on Form 10-Q or other securities filings, as well as our upcoming quarterly report on Form 10-Q for the first quarter of 2025. The forward-looking statements contained in this news release represent TrustCo management’s judgment as of the date of this news release. TrustCo disclaims, however, any intent or obligation to update forward-looking statements, either as a result of future developments, new information or otherwise, except as may be required by law.

TRUSTCO BANK CORP NY
GLENVILLE, NY

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)
(Unaudited)
	Three months ended
	3/31/2025			12/31/2024			3/31/2024
Summary of operations
Net interest income	$	40,373		$	38,902		$	36,578
Provision for credit losses		300			400			600
Noninterest income		4,974			4,409			4,843
Noninterest expense		26,329			28,165			24,903
Net income		14,275			11,281			12,126

Per share
Net income per share:
– Basic	$	0.75		$	0.59		$	0.64
– Diluted		0.75			0.59			0.64
Cash dividends		0.36			0.36			0.36
Book value at period end		36.16			35.56			34.12
Market price at period end		30.48			33.31			28.16

At period end
Full time equivalent employees		740			737			761
Full service banking offices		136			136			140

Performance ratios
Return on average assets		0.93	%		0.73	%		0.80	%
Return on average equity		8.49			6.70			7.54
Efficiency ratio (GAAP)		58.06			65.03			59.94
Adjusted Efficiency ratio (1)		58.00			63.93			59.94
Net interest spread		2.21			2.15			2.00
Net interest margin		2.64			2.60			2.44
Dividend payout ratio	47.97				60.70			56.48

Capital ratios at period end
Consolidated equity to assets		10.85	%		10.84	%		10.51	%
Consolidated tangible equity to tangible assets (1)		10.84	%		10.83	%		10.50	%

Asset quality analysis at period end
Nonperforming loans to total loans		0.37	%		0.37	%		0.37	%
Nonperforming assets to total assets		0.33			0.34			0.33
Allowance for credit losses on loans to total loans		0.99			0.99			0.98
Coverage ratio (2)	2.7x			2.7x			2.7x


(1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.
(2) Calculated as allowance for credit losses on loans divided by total nonperforming loans.


CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share data)
(Unaudited)
	Three months ended
	3/31/2025		12/31/2024		9/30/2024		6/30/2024		3/31/2024
Interest and dividend income:
Interest and fees on loans	$	53,450	$	53,024	$	52,112	$	50,660	$	49,804
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		596		680		718		909		906
State and political subdivisions		–		–		–		1		–
Mortgage-backed securities and collateralized mortgage
obligations – residential		1,483		1,418		1,397		1,451		1,494
Corporate bonds		260		358		361		362		476
Small Business Administration – guaranteed
participation securities		81		84		90		94		100
Other securities		7		6		2		2		3
Total interest and dividends on securities available for sale		2,427		2,546		2,568		2,819		2,979

Interest on held to maturity securities:
obligations – residential		57		59		62		65		68
Total interest on held to maturity securities		57		59		62		65		68

Federal Home Loan Bank stock		151		152		153		147		152

Interest on federal funds sold and other short-term investments		6,732		6,128		6,174		6,894		6,750
Total interest income		62,817		61,909		61,069		60,585		59,753

Interest expense:
Interest on deposits:
Interest-bearing checking		558		397		311		288		240
Savings		734		719		770		675		712
Money market deposit accounts		1,989		2,024		2,154		2,228		2,342
Time deposits		18,983		19,680		18,969		19,400		19,677
Interest on short-term borrowings		180		187		194		206		204
Total interest expense		22,444		23,007		22,398		22,797		23,175

Net interest income		40,373		38,902		38,671		37,788		36,578

Less: Provision for credit losses		300		400		500		500		600
Net interest income after provision for credit losses		40,073		38,502		38,171		37,288		35,978

Noninterest income:
Trustco Financial Services income		2,120		1,778		2,044		1,609		1,816
Fees for services to customers		2,645		2,226		2,482		2,399		2,745
Net gains on equity securities		–		–		23		1,360		–
Other		209		405		382		283		282
Total noninterest income		4,974		4,409		4,931		5,651		4,843

Noninterest expenses:
Salaries and employee benefits		11,894		12,068		12,134		12,520		11,427
Net occupancy expense		4,554		4,563		4,271		4,375		4,611
Equipment expense		1,944		2,404		1,757		1,990		1,738
Professional services		1,726		1,782		1,863		1,570		1,460
Outsourced services		2,700		3,051		2,551		2,755		2,501
Advertising expense		361		590		339		466		408
FDIC and other insurance		1,188		1,113		1,112		797		1,094
Other real estate expense, net		28		476		204		16		74
Other		1,934		2,118		1,969		1,970		1,590
Total noninterest expenses		26,329		28,165		26,200		26,459		24,903

Income before taxes		18,718		14,746		16,902		16,480		15,918
Income taxes		4,443		3,465		4,027		3,929		3,792

Net income	$	14,275	$	11,281	$	12,875	$	12,551	$	12,126

Net income per common share:
– Basic	$	0.75	$	0.59	$	0.68	$	0.66	$	0.64

– Diluted		0.75		0.59		0.68		0.66		0.64

Average basic shares (in thousands)		19,020		19,015		19,010		19,022		19,024
Average diluted shares (in thousands)		19,044		19,045		19,036		19,033		19,032


CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)
(Unaudited)
	3/31/2025			12/31/2024			9/30/2024			6/30/3024				3/31/2024
ASSETS:

Cash and due from banks	$	48,782		$	47,364		$	49,659		$	42,193		$	44,868
Federal funds sold and other short term investments		707,355			594,448			473,306			493,920			564,815
Total cash and cash equivalents		756,137			641,812			522,965			536,113			609,683

Securities available for sale:
U. S. government sponsored enterprises		65,942			85,617			90,588			106,796			128,854
States and political subdivisions		18			18			26			26			26
Mortgage-backed securities and collateralized mortgage
obligations – residential		219,333			213,128			222,841			218,311			227,078
Small Business Administration – guaranteed
participation securities		13,683			14,141			15,171			15,592			16,260
Corporate bonds		24,779			44,581			54,327			53,764			53,341
Other securities		698			700			701			688			682
Total securities available for sale		324,453			358,185			383,654			395,177			426,241

Held to maturity securities:
Mortgage-backed securities and collateralized mortgage
obligations-residential		5,090			5,365			5,636			5,921			6,206
Total held to maturity securities		5,090			5,365			5,636			5,921			6,206

Federal Reserve Bank and Federal Home Loan Bank stock		6,507			6,507			6,507			6,507			6,203

Loans:
Commercial		302,753			286,857			280,261			282,441			279,092
Residential mortgage loans		4,380,561			4,388,302			4,382,674			4,370,640			4,354,369
Home equity line of credit		419,806			409,261			393,418			370,063			355,879
Installment loans		13,017			13,638			14,503			15,168			16,166
Loans, net of deferred net costs		5,116,137			5,098,058			5,070,856			5,038,312			5,005,506

Less: Allowance for credit losses on loans		50,606			50,248			49,950			49,772			49,220
Net loans		5,065,531			5,047,810			5,020,906			4,988,540			4,956,286

Bank premises and equipment, net		37,178			33,782			33,324			33,466			33,423
Operating lease right-of-use assets		34,968			36,627			37,958			38,376			39,647
Other assets		108,681			108,656			98,730			102,544			101,881

Total assets	$	6,338,545		$	6,238,744		$	6,109,680		$	6,106,644		$	6,179,570

LIABILITIES:
Deposits:
Demand	$	793,306		$	762,101		$	753,878		$	745,227		$	742,997
Interest-bearing checking		1,067,948			1,027,540			988,527			1,029,606			1,020,136
Savings accounts		1,094,968			1,086,534			1,092,038			1,144,427			1,155,517
Money market deposit accounts		478,872			465,049			477,113			517,445			532,611
Time deposits		2,061,576			2,049,759			1,952,635			1,840,262			1,903,908
Total deposits		5,496,670			5,390,983			5,264,191			5,276,967			5,355,169

Short-term borrowings		82,275			84,781			91,450			89,720			94,374
Operating lease liabilities		38,324			40,159			41,469			42,026			43,438
Accrued expenses and other liabilities		33,468			46,478			43,549			42,763			37,399

Total liabilities		5,650,737			5,562,401			5,440,659			5,451,476			5,530,380

SHAREHOLDERS’ EQUITY:
Capital stock		20,097			20,097			20,058			20,058			20,058
Surplus		259,182			258,874			257,644			257,490			257,335
Undivided profits		453,931			446,503			442,079			436,048			430,346
Accumulated other comprehensive loss, net of tax		(132	)		(3,861	)		(6,600	)		(14,268	)		(14,763	)
Treasury stock at cost		(45,270	)		(45,270	)		(44,160	)		(44,160	)		(43,786	)

Total shareholders’ equity		687,808			676,343			669,021			655,168			649,190

Total liabilities and shareholders’ equity	$	6,338,545		$	6,238,744		$	6,109,680		$	6,106,644		$	6,179,570

Outstanding shares (in thousands)		19,020			19,020			19,010			19,010			19,024

NONPERFORMING ASSETS

(dollars in thousands)
(Unaudited)
	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Nonperforming Assets

New York and other states*
Loans in nonaccrual status:
Commercial	$	688		$	343		$	466		$	741		$	532
Real estate mortgage – 1 to 4 family		14,795			14,671			15,320			14,992			14,359
Installment		139			108			163			131			149
Total non-accrual loans		15,622			15,122			15,949			15,864			15,040
Other nonperforming real estate mortgages – 1 to 4 family		–			–			–			–			–
Total nonperforming loans		15,622			15,122			15,949			15,864			15,040
Other real estate owned		2,107			2,175			2,503			2,334			2,334
Total nonperforming assets	$	17,729		$	17,297		$	18,452		$	18,198		$	17,374

Florida
Loans in nonaccrual status:
Commercial	$	–		$	–		$	314		$	314		$	314
Real estate mortgage – 1 to 4 family		3,135			3,656			3,176			2,985			2,921
Installment		3			22			5			22			–
Total non-accrual loans		3,138			3,678			3,495			3,321			3,235
Other nonperforming real estate mortgages – 1 to 4 family		–			–			–			–			–
Total nonperforming loans		3,138			3,678			3,495			3,321			3,235
Other real estate owned		–			–			–			–			–
Total nonperforming assets	$	3,138		$	3,678		$	3,495		$	3,321		$	3,235

Total
Loans in nonaccrual status:
Commercial	$	688		$	343		$	780		$	1,055		$	846
Real estate mortgage – 1 to 4 family		17,930			18,327			18,496			17,977			17,280
Installment		142			130			168			153			149
Total non-accrual loans		18,760			18,800			19,444			19,185			18,275
Other nonperforming real estate mortgages – 1 to 4 family		–			–			–			–			–
Total nonperforming loans		18,760			18,800			19,444			19,185			18,275
Other real estate owned		2,107			2,175			2,503			2,334			2,334
Total nonperforming assets	$	20,867		$	20,975		$	21,947		$	21,519		$	20,609


Quarterly Net (Recoveries) Chargeoffs

New York and other states*
Commercial	$	(3	)	$	62		$	65		$	–		$	–
Real estate mortgage – 1 to 4 family		41			(316	)		104			(74	)		(78	)
Installment		4			41			11			(2	)		36
Total net chargeoffs (recoveries)	$	42		$	(213	)	$	180		$	(76	)	$	(42	)

Florida
Commercial	$	(315	)	$	314		$	–		$	–		$	–
Real estate mortgage – 1 to 4 family		–			–			–			17			–
Installment		15			1			42			7			–
Total net (recoveries) chargeoffs	$	(300	)	$	315		$	42		$	24		$	–

Total
Commercial	$	(318	)	$	376		$	65		$	–		$	–
Real estate mortgage – 1 to 4 family		41			(316	)		104			(57	)		(78	)
Installment		19			42			53			5			36
Total net (recoveries) chargeoffs	$	(258	)	$	102		$	222		$	(52	)	$	(42	)


Asset Quality Ratios

Total nonperforming loans (1)	$	18,760		$	18,800		$	19,444		$	19,185		$	18,275
Total nonperforming assets (1)		20,867			20,975			21,947			21,519			20,609
Total net (recoveries) chargeoffs (2)		(258	)		102			222			(52	)		(42	)

Allowance for credit losses on loans (1)		50,606			50,248			49,950			49,772			49,220

Nonperforming loans to total loans		0.37	%		0.37	%		0.38	%		0.38	%		0.37	%
Nonperforming assets to total assets		0.33	%		0.34	%		0.36	%		0.35	%		0.33	%
Allowance for credit losses on loans to total loans		0.99	%		0.99	%		0.99	%		0.99	%		0.98	%
Coverage ratio (1)		269.8	%		267.3	%		256.9	%		259.4	%		269.3	%
Annualized net (recoveries) chargeoffs to average loans (2)		-0.02	%		0.01	%		0.02	%		0.00	%		0.00	%
Allowance for credit losses on loans to annualized net chargeoffs (2)		N/A			123.2x			56.3x			N/A			N/A

* Includes New York, New Jersey, Vermont and Massachusetts.
(1) At period-end
(2) For the three-month period ended

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY –
INTEREST RATES AND INTEREST DIFFERENTIAL

(dollars in thousands)
(Unaudited)	Three months ended							Three months ended
	March 31, 2025							March 31, 2024
	Average			Interest		Average		Average			Interest		Average
	Balance					Rate		Balance					Rate
Assets

Securities available for sale:
U. S. government sponsored enterprises	$	74,680		$	596	3.19	%	$	125,973		$	906	2.88	%
Mortgage backed securities and collateralized mortgage
obligations – residential		239,509			1,483	2.46			258,814			1,494	2.30
State and political subdivisions		18			–	6.77			26			0	6.90
Corporate bonds		40,019			260	2.60			73,625			476	2.59
Small Business Administration – guaranteed
participation securities		15,003			81	2.15			18,224			100	2.20
Other		699			7	4.01			696			3	1.72

Total securities available for sale		369,928			2,427	2.62			477,358			2,979	2.50

Federal funds sold and other short-term Investments		613,646			6,732	4.45			497,652			6,750	5.45

Held to maturity securities:
Mortgage backed securities and collateralized mortgage
obligations – residential		5,233			57	4.34			6,329			68	4.30

Total held to maturity securities		5,233			57	4.34			6,329			68	4.30

Federal Home Loan Bank stock		6,507			151	9.28			6,203			152	9.80

Commercial loans		297,926			4,165	5.59			277,183			3,661	5.28
Residential mortgage loans		4,385,646			42,614	3.89			4,359,476			40,415	3.71
Home equity lines of credit		413,981			6,435	6.30			353,004			5,464	6.22
Installment loans		12,967			236	7.37			16,128			264	6.58

Loans, net of unearned income		5,110,520			53,450	4.19			5,005,791			49,804	3.98

Total interest earning assets		6,105,834		$	62,817	4.13			5,993,333		$	59,753	3.99

Allowance for credit losses on loans		(50,475	)						(48,824	)
Cash & non-interest earning assets		201,154							185,230


Total assets	$	6,256,513						$	6,129,739


Liabilities and shareholders’ equity

Deposits:
Interest bearing checking accounts	$	1,038,218		$	558	0.22	%	$	990,130		$	240	0.10	%
Money market accounts		469,070			1,989	1.72			544,687			2,342	1.73
Savings		1,089,358			734	0.27			1,158,558			712	0.25
Time deposits		2,054,494			18,984	3.75			1,889,929			19,677	4.19

Total interest bearing deposits		4,651,140			22,265	1.94			4,583,304			22,971	2.02
Short-term borrowings		83,207			180	0.88			93,316			204	0.88

Total interest bearing liabilities		4,734,347		$	22,445	1.92			4,676,620		$	23,175	1.99

Demand deposits		761,800							726,299
Other liabilities		78,748							80,158
Shareholders’ equity		681,618							646,662

Total liabilities and shareholders’ equity	$	6,256,513						$	6,129,739

Net interest income				$	40,372						$	36,578

Net interest spread						2.21	%						2.00	%


Net interest margin (net interest income to
total interest earning assets)						2.64	%						2.44	%

Non-GAAP Financial Measures Reconciliation

Tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value by excluding the balance of intangible assets from total shareholders’ equity divided by shares outstanding. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity exclusive of changes in intangible assets.

Tangible equity as a percentage of tangible assets at period end is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from total shareholders’ equity and total assets, respectively. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.

Adjusted efficiency ratio is a non-GAAP measures of expense control relative to revenue from net interest income and non-interest fee income. We calculate the efficiency ratio by dividing total non-interest expense by the sum of net interest income and total non-interest income. We calculate the adjusted efficiency ratio by dividing total noninterest expenses as determined under GAAP, excluding other real estate expense, net, by net interest income and total noninterest income as determined under GAAP. We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue. Additionally, we believe this measure is important to investors looking for a measure of efficiency in our productivity measured by the amount of revenue generated for each dollar spent.

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial results. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible book value to shares outstanding, tangible equity as a percentage of tangible assets, and efficiency ratio to the most directly comparable GAAP measures is set forth below.

NON-GAAP FINANCIAL MEASURES RECONCILIATION

(dollars in thousands)
(Unaudited)
		3/31/2025			12/31/2024			3/31/2024
Tangible Book Value Per Share

Equity (GAAP)		$	687,808		$	676,343		$	649,190
Less: Intangible assets			553			553			553
Tangible equity (Non-GAAP)		$	687,255		$	675,790		$	648,637

Shares outstanding			19,020			19,020			19,024
Tangible book value per share			36.13			35.53			34.10
Book value per share			36.16			35.56			34.12

Tangible Equity to Tangible Assets
Total Assets (GAAP)		$	6,338,545		$	6,238,744		$	6,179,570
Less: Intangible assets			553			553			553
Tangible assets (Non-GAAP)		$	6,337,992		$	6,238,191		$	6,179,017

Equity to Assets (GAAP)			10.85	%		10.84	%		10.51	%
Tangible Equity to Tangible Assets (Non-GAAP)			10.84	%		10.83	%		10.50	%

		Three months ended
Efficiency and Adjusted Efficiency Ratios		3/31/2025			12/31/2024			3/31/2024

Net interest income (GAAP)	A	$	40,373		$	38,902		$	36,578
Non-interest income (GAAP)	B		4,974			4,409			4,843
Revenue used for efficiency ratio (GAAP)	C	$	45,347		$	43,311		$	41,421

Total noninterest expense (GAAP)	D	$	26,329		$	28,165		$	24,903
Less: Other real estate expense, net	E		28			476			74
Expense used for efficiency ratio (Non-GAAP)	F	$	26,301		$	27,689		$	24,829

Efficiency Ratio (GAAP)	D/C		58.06	%		65.03	%		59.94	%
Adjusted Efficiency Ratio (Non-GAAP)	F/C		58.00	%		63.93	%		59.94	%

Subsidiary:		Trustco Bank

Contact:		Robert Leonard
		Executive Vice President
		(518) 381-3693

The MIL Network –

April 22, 2025

MIL-OSI Global: The new abnormal: Debating Canada’s future at a hinge point in history

Source: The Conversation – Canada – By Stewart Prest, Lecturer, Political Science, University of British Columbia

Canadians watched the two leaders’ debates unfold last week in Montréal. The debates, and this election, occur at a pivotal moment in history. Canadians go to the polls as the future of global democracy and governance, and in fact the very independence of the country, is in the balance.

In crucial ways, the debates failed to meet the moment — and therefore will likely be forgotten as Canadians vote cast their ballots in a week. Unlike a past debate that focused on Canadian sovereignty between John Turner and Brian Mulroney in 1988, this one featured few knockout punches or memorable moments.

Shadows of the past

In the weeks prior to the debates, observers drew comparisons to that momentous English-language leaders’ showdown 37 years ago. That debate laid out a clear question for voters: Are you in favour of entering a free-trade agreement with the United States?

Prime Minister Mulroney was supportive of the agreement, while Liberal Leader Turner was sharply opposed, fearing for the country’s independence.

In the end, both Mulroney and Turner had a point. In the ensuing decades, free trade with the U.S. has brought both prosperity and dependence on the country as the Canadian economy became ever more deeply intertwined with that of the United States.

A hinge point in history

In 2025, we face an even more pivotal moment. The global order is shifting.

Under Donald Trump, the U.S. has moved away from its decades-old position at the heart of a liberal international order centred on western democracies to embrace a transactional and illiberal foreign policy built on the language of power.

Given the gravity of the moment however, we heard comparatively little during the debates about how Canada must respond at this hinge point in history as Canadians adapt to a predictably unpredictable future.

The threat of economic tariffs, while real, are just the beginning. Leaders alluded to the fact that Canada’s erstwhile closest ally now constitutes a threat to Canadian sovereignty, but it was not a major point of discussion, even as the the White House Press secretary recently affirmed Trump still wants Canada to become the 51st state. Threats to the territorial integrity of other former American allies continue as well.

Viewers heard questions during the debate related to the possibility that the U.S. may no longer support Ukraine, but nothing about how Trump shocked the world with a very public dressing-down of Ukraine’s president or how he seems more comfortable co-operating with Vladimir Putin’s Russia.

Virtually no mention was made of the fact that the U.S. is, by some measures, no longer a democracy. Its courts are politicized. Congress is polarized. The federal civil service remains under siege, and key institutions of civil society are under pressure to conform to Trump’s demands. Nor was there any discussion about how the Trump administration is openly defying court orders, effectively flouting the rule of law, and what that could mean for Trump’s annexation threats against Canada.

There was some talk during the debate of Canada trying to reach the (Trump-demanded) NATO military target for military spending, but nothing about the fact that the future of the alliance is uncertain. European states are openly questioning the credibility of American support in the event of an attack and European leaders discussing defence strategies without American involvement for the first time since the Second World War.

A debate like any other

It’s clear from such silences on the debate stage that Canadian voters, journalists, debate moderators and politicians alike are all still coming to terms with the depth of change in the world around them.

The debate was filled with talk of pipelines, housing strategies and domestic law and order. In fact, neither debate was much different from those of the past 20 years.

That’s not to suggest domestic challenges don’t require substantive discussion and policy proposals. As I and others have argued, the populist anti-incumbent wave that we saw sweeping Canadian and global politics in recent years can be traced to the sense that a portion of the population — younger voters in particular — feel left behind and ignored.

The challenges are multiple and significant, including but not limited to housing and affordability, public safety and policing, slow economic development and the challenges of responding to climate change in an economy dependent on energy exports.

Nonetheless, in focusing so heavily on domestic and not global threats, the debate verged at times on the parochial.

Bloc leader Yves-François Blanchet, for instance, tried to keep provincial jurisdiction and Québec’s interests top of mind. NDP leader Jagmeet Singh’s message, at its most effective, was that as the country turns to face new challenges, it cannot forget about the marginalized in Canadian society and abroad. Worthy points, but secondary to the larger moment.

Ultimately, the debate was dominated by the other two men on the stage with a real chance to govern the country next week: Liberal Leader Mark Carney and Conservative Leader Pierre Poilievre.

The two appeared united in their passion for the country and pipelines, and share some other priorities, notably facilitating interprovincial economic integration.

Conservative base is divided

In other respects, the two leaders diverged significantly in their views. Of all the leaders, Carney was the most willing to discuss the Trump threat, including when he suggested in his closing English remarks that Trump is “trying to break us so the U.S. can own us.”

For the majority of the debates, however, the Liberal leader focused primarily on the economic threat. He argued that the country must look away from the U.S., and instead build inward with investment in housing and energy at home, and build outward by identifying more reliable markets and allies abroad.

Poilievre’s messaging was more nuanced, moving in different directions to suit different audiences. No doubt this is because the country’s Conservative voting base is itself deeply divided between mainstream conservatives who share their fellow Canadians’ concerns about Trump and a populist faction that tends to identify with the MAGA movement in numerous ways.

In attempting to square that circle, Poilievre has signalled strong opposition to Trump and his tariffs — a point he repeatedly discussed during the debate — and called for measures to enhance Canadian productivity, notably in the energy sector.

At the same time, however, he endorsed other policies that evoke aspects of Trump’s own political agenda, something he largely avoided mentioning during the debates. Notable among are Poilievre’s promised war on “woke” culture. While not discussed in detail during the debates, disruptive questions from right-wing media outlets following the French debate illustrated just how close to the surface such issues remain.

The ‘new abnormal’

In the absence of a significant gaffe, knockout blow or other dramatic twist, the debates are unlikely to change many minds, and seem likely to soon fade from memory.

Initial post-debate polling suggests as much. Anyone leaning one way or another heard enough to affirm their views as they tuned into the debates, and nothing to make them question their choice.

Answers to larger questions about how Canada should move forward in this emergent new global order, amid daunting new threats to peace and democracy, remain only hinted at. Whoever wins the election, those questions will continue to be asked with increased urgency in the coming years.

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

– ref. The new abnormal: Debating Canada’s future at a hinge point in history – https://theconversation.com/the-new-abnormal-debating-canadas-future-at-a-hinge-point-in-history-254675

MIL OSI – Global Reports –

April 22, 2025

MIL-OSI United Kingdom: PM call with President Zelenskyy of Ukraine: 21 April 2025

Source: United Kingdom – Executive Government & Departments

Press release

PM call with President Zelenskyy of Ukraine: 21 April 2025

The Prime Minister spoke to President of Ukraine, Volodymyr Zelenskyy this afternoon.

The Prime Minister reiterated his iron-clad support for Ukraine. He said that the UK supports Ukraine’s calls for Russia to commit to a full ceasefire and that now is the time for Putin to show he is serious about ending his brutal war.

They discussed the latest developments on the Coalition of the Willing, and looked forward to further progress towards a just and lasting peace.

Published 21 April 2025

MIL OSI United Kingdom –

April 22, 2025

MIL-OSI United Kingdom: PM call with Prime Minister Støre of Norway: 21 April 2025

Source: United Kingdom – Executive Government & Departments

Press release

PM call with Prime Minister Støre of Norway: 21 April 2025

The Prime Minister spoke to the Prime Minister of Norway, Jonas Gahr Støre this afternoon.

Reflecting on their shared priority of seeing peace in Ukraine, the leaders agreed there can be no let-up in their support for Ukraine. They also discussed the importance of keeping up economic pressure on Russia to ensure they engage seriously in talks.

On the topic of global trade, the Prime Minister reiterated his commitment to protecting UK interests through a cool and calm approach. The leaders agreed a trade war is in nobody’s interests.

They welcomed progress being made on the new bilateral defence agreement between their two countries and looked forward to discussing further soon.

Published 21 April 2025

MIL OSI United Kingdom –

April 22, 2025

MIL-OSI Video: The Week at State: Week of April 16, 2025

Source: United States of America – Department of State (video statements)

In The Week at State with Spokesperson Tammy Bruce: Secretary Rubio joined President Trump’s meeting with Salvadoran President Bukele and went to Paris for talks on ending the Russia-Ukraine war. The Secretary met with Jordanian and Indonesian officials and also directed the cancellation of $214 million in misguided programs.

https://www.youtube.com/watch?v=fa6r0JMa0CY

MIL OSI Video –

April 22, 2025

MIL-OSI Economics: MSCI and Moody’s to Launch Independent Risk Assessments for Private Credit Investments

Source: Moody’s

Headline: MSCI and Moody’s to Launch Independent Risk Assessments for Private Credit Investments

Solution to Promote Transparency and Strengthen Investors’ Private Credit Asset Allocation Strategies

NEW YORK–(BUSINESS WIRE)– MSCI Inc. (NYSE:MSCI) and Moody’s Corporation (NYSE:MCO) will jointly create a first-of-its-kind solution to provide independent risk assessments for private credit investments at scale.

As the private credit market continues to evolve and grow, the need for consistent standards and better tools has become essential for investors to assess, compare and communicate the risk of their investments.

MSCI offers a unique and comprehensive universe of high-quality private capital data, sourced from original documents provided by managers, including data on more than 2,800 private credit funds and 14,000+ individual underlying companies. As part of this joint offering, Moody’s will extend its flagship EDF-X models into MSCI’s private credit solutions. EDF-X delivers risk insights using best-in-class credit models and early warning signals to help investors assess the financial strength of public and private companies globally.

The combination of Moody’s flagship EDF-X credit risk modeling solutions with MSCI’s universe of private credit investment data will produce proprietary third-party risk assessments for private credit investments available at the underlying company and facility level using transparent metrics.

“As the private credit market evolves, investors are looking for trusted independent assessments to help benchmark credit risk and inform investments and monitor portfolios,” said Rob Fauber, President and CEO of Moody’s. “Our partnership with MSCI will play a critical role in providing these insights, helping market participants make informed decisions.”

“The rapid growth of private credit continues to transform the global investment landscape while highlighting the need for increased transparency, consistent standards and independent risk assessment,” said Henry A. Fernandez, Chairman and CEO of MSCI. “We are proud to partner with Moody’s to deliver innovative solutions that can help drive greater clarity and confidence.”

The solution will be distinct from the services provided by Moody’s Ratings, the credit rating agency, to the issuers in the private credit market.

About Moody’s Corporation

In a world shaped by increasingly interconnected risks, Moody’s (NYSE: MCO) data, insights, and innovative technologies help customers develop a holistic view of their world and unlock opportunities. With a rich history of experience in global markets and a diverse workforce of approximately 16,000 across more than 40 countries, Moody’s gives customers the comprehensive perspective needed to act with confidence and thrive. Learn more at moodys.com.

About MSCI

MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data, and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process. To learn more, please visit www.msci.com.

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995

Certain statements contained in this document are forward-looking statements and are based on future expectations, plans and prospects for Moody’s business and operations that involve a number of risks and uncertainties. Such statements involve estimates, projections, goals, forecasts, assumptions and uncertainties that could cause actual results or outcomes to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements. Stockholders and investors are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements and other information in this document are made as of the date hereof, and Moody’s undertakes no obligation (nor does it intend) to publicly supplement, update or revise such statements on a going-forward basis, whether as a result of subsequent developments, changed expectations or otherwise, except as required by applicable law or regulation. In connection with the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Moody’s is identifying certain factors that could cause actual results to differ, perhaps materially, from those indicated by these forward-looking statements. These factors, risks and uncertainties include, but are not limited to: the impact of general economic conditions (including significant government debt and deficit levels, and inflation and related monetary policy actions by governments in response to inflation) on worldwide credit markets and on economic activity, including on the volume of mergers and acquisitions, and their effects on the volume of debt and other securities issued in domestic and/or global capital markets; the uncertain effectiveness and possible collateral consequences of U.S. and foreign government initiatives and monetary policy to respond to the current economic climate, including instability of financial institutions, credit quality concerns, and other potential impacts of volatility in financial and credit markets; the global impacts of the Russia – Ukraine military conflict and the military conflict in Israel and the surrounding areas on volatility in world financial markets, on general economic conditions and GDP in the U.S. and worldwide, on global relations and on the Company’s own operations and personnel; other matters that could affect the volume of debt and other securities issued in domestic and/or global capital markets, including regulation, increased utilization of technologies that have the potential to intensify competition and accelerate disruption and disintermediation in the financial services industry, as well as the number of issuances of securities without ratings or securities which are rated or evaluated by non-traditional parties; the level of merger and acquisition activity in the U.S. and abroad; the uncertain effectiveness and possible collateral consequences of U.S. and foreign government actions affecting credit markets, international trade and economic policy, including those related to tariffs, tax agreements and trade barriers; the impact of MIS’s withdrawal of its credit ratings on countries or entities within countries and of Moody’s no longer conducting commercial operations in countries where political instability warrants such actions; concerns in the marketplace affecting our credibility or otherwise affecting market perceptions of the integrity or utility of independent credit agency ratings; the introduction or development of competing and/or emerging technologies and products; pricing pressure from competitors and/or customers; the level of success of new product development and global expansion; the impact of regulation as an NRSRO, the potential for new U.S., state and local legislation and regulations; the potential for increased competition and regulation in the jurisdictions in which we operate, including the EU; exposure to litigation related to our rating opinions, as well as any other litigation, government and regulatory proceedings, investigations and inquiries to which Moody’s may be subject from time to time; provisions in U.S. legislation modifying the pleading standards and EU regulations modifying the liability standards applicable to credit rating agencies in a manner adverse to credit rating agencies; provisions of EU regulations imposing additional procedural and substantive requirements on the pricing of services and the expansion of supervisory remit to include non-EU ratings used for regulatory purposes; uncertainty regarding the future relationship between the U.S. and China; the possible loss of key employees and the impact of the global labor environment; failures or malfunctions of our operations and infrastructure; any vulnerabilities to cyber threats or other cybersecurity concerns; the timing and effectiveness of our restructuring programs, such as the 2022 – 2023 Geolocation Restructuring Program; currency and foreign exchange volatility; the outcome of any review by tax authorities of Moody’s global tax planning initiatives; exposure to potential criminal sanctions or civil remedies if Moody’s fails to comply with foreign and U.S. laws and regulations that are applicable in the jurisdictions in which Moody’s operates, including data protection and privacy laws, sanctions laws, anti-corruption laws, and local laws prohibiting corrupt payments to government officials; the impact of mergers, acquisitions, such as our acquisition of RMS, or other business combinations and the ability of Moody’s to successfully integrate acquired businesses; the level of future cash flows; the levels of capital investments; and a decline in the demand for credit risk management tools by financial institutions. These factors, risks and uncertainties as well as other risks and uncertainties that could cause Moody’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements are described in greater detail under “Risk Factors” in Part I, Item 1A of Moody’s annual report on Form 10-K for the year ended December 31, 2024, and in other filings made by the Company from time to time with the SEC or in materials incorporated herein or therein. Stockholders and investors are cautioned that the occurrence of any of these factors, risks and uncertainties may cause the Company’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements, which could have a material and adverse effect on the Company’s business, results of operations and financial condition. New factors may emerge from time to time, and it is not possible for the Company to predict new factors, nor can the Company assess the potential effect of any new factors on it. Forward-looking and other statements in this document may also address our corporate responsibility progress, plans, and goals (including sustainability and environmental matters), and the inclusion of such statements is not an indication that these contents are necessarily material to investors or required to be disclosed in the Company’s filings with the Securities and Exchange Commission. In addition, historical, current, and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to future events or to future financial performance and involve known and unknown risks, uncertainties and other factors that may cause MSCI’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these statements. In some cases, you can identify forward-looking statements by the use of words such as “may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,” “believe,” “estimate,” “predict,” “potential” or “continue,” or the negative of these terms or other comparable terminology. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond MSCI’s control and that could materially affect actual results, levels of activity, performance or achievements.

Other factors that could materially affect MSCI’s actual results, levels of activity, performance or achievements can be found in MSCI’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission (“SEC”) on February 9, 2025 and in quarterly reports on Form 10-Q and current reports on Form 8-K filed or furnished with the SEC. If any of these risks or uncertainties materialize, or if MSCI’s underlying assumptions prove to be incorrect, actual results may vary significantly from what MSCI projected. Any forward-looking statement in this press release reflects MSCI’s current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to MSCI’s operations, results of operations, growth strategy and liquidity. MSCI assumes no obligation to publicly update or revise these forward-looking statements for any reason, whether as a result of new information, future events, or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250421530056/en/

For Moody’s Investor Relations:
Shivani Kak
Moody’s Corporation
+1 212-553-0298
Shivani.Kak@moodys.com

For Moody’s Communications:
Joe Mielenhausen
Moody’s Corporation
+1 212-553-1461
Joe.Mielenhausen@moodys.com

For MSCI Investor Relations:
Jeremy Ulan
MSCI
+1 646 778 4184
jeremy.ulan@msci.com

Jisoo Suh
MSCI
+1 212 804 1598
jisoo.suh@msci.com

For MSCI Communications:
pr@msci.com
Melanie Blanco
MSCI
+1 646-220-4157
melanie.blanco@msci.com

Source: MSCI Inc.

MIL OSI Economics –

April 22, 2025

MIL-OSI: HBT Financial, Inc. Announces First Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

First Quarter Highlights

Net income of $19.1 million, or $0.60 per diluted share; return on average assets (“ROAA”) of 1.54%; return on average stockholders’ equity (“ROAE”) of 13.95%; and return on average tangible common equity (“ROATCE”)⁽¹⁾ of 16.20%
Adjusted net income⁽¹⁾ of $19.3 million; or $0.61 per diluted share; adjusted ROAA⁽¹⁾ of 1.55%; adjusted ROAE⁽¹⁾ of 14.08%; and adjusted ROATCE⁽¹⁾ of 16.36%
Asset quality remained exceptional with nonperforming assets to total assets of 0.11% and net charge-offs to average loans of 0.05%, on an annualized basis
Net interest margin increased 16 basis points to 4.12% and net interest margin (tax-equivalent basis)⁽¹⁾increased 15 basis point to 4.16%

BLOOMINGTON, Ill., April 21, 2025 (GLOBE NEWSWIRE) — HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company, today reported net income of $19.1 million, or $0.60 diluted earnings per share, for the first quarter of 2025. This compares to net income of $20.3 million, or $0.64 diluted earnings per share, for the fourth quarter of 2024, and net income of $15.3 million, or $0.48 diluted earnings per share, for the first quarter of 2024.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “We are off to a great start in 2025 with strong first quarter results. Despite the economic outlook recently becoming more uncertain, leading to interest rate volatility and stock market declines, we still believe that 2025 will be a solid year for HBT. Our credit discipline, strong profitability and solid balance sheet give us confidence that we are prepared for a variety of economic environments.

We continued to report solid profitability with adjusted net income⁽¹⁾ of $19.3 million, or $0.61 per diluted share, an adjusted ROAA⁽¹⁾ of 1.55% and an adjusted ROATCE⁽¹⁾ of 16.36%. Our net interest margin on a tax-equivalent basis⁽¹⁾ increased by 15 basis points, with 5 basis points of that increase related to higher nonaccrual interest recoveries and loan fees, as average loan balances were higher, loans and securities continued to reprice higher, and deposits repriced lower. Our strong profitability coupled with an improvement in our accumulated other comprehensive income due to lower interest rates, resulted in a $0.63 increase in our tangible book value per share⁽¹⁾ to $15.43. Tangible book value per share increased by 4.3% for the quarter and 17.0% over the last year.

Our balance sheet remains strong with all capital ratios increasing during the quarter and asset quality improving with nonperforming assets to total assets declining to only 0.11%. Loans at quarter-end were down only slightly while average loans for the quarter were up 2.2%. Deposits were up 1.5% at quarter-end and average deposits for the quarter were up 1.1%. Deposit growth was aided by moving most of our repurchase agreements into interest-bearing demand deposits. Our capital levels and operational structure support attractive acquisition opportunities should the right opportunity arise and markets stabilize.”
____________________________________
(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

Adjusted Net Income

In addition to reporting GAAP results, the Company believes non-GAAP measures such as adjusted net income and adjusted earnings per share, which adjust for acquisition expenses, branch closure expenses, gains (losses) on closed branch premises, realized gains (losses) on sales of securities, mortgage servicing rights fair value adjustments, and the tax effect of these pre-tax adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $19.3 million, or $0.61 adjusted diluted earnings per share, for the first quarter of 2025. This compares to adjusted net income of $19.5 million, or $0.62 adjusted diluted earnings per share, for the fourth quarter of 2024, and adjusted net income of $18.1 million, or $0.57 adjusted diluted earnings per share, for the first quarter of 2024 (see “Reconciliation of Non-GAAP Financial Measures” tables below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures).

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2025 was $48.7 million, an increase of 2.8% from $47.4 million for the fourth quarter of 2024. The increase was primarily attributable to higher average loan balances, a decrease in deposit costs, and higher yields on loans and debt securities. Additionally, a $0.6 million increase in nonaccrual interest recoveries and loan fees contributed to the increase in net interest income.

Relative to the first quarter of 2024, net interest income increased 4.3% from $46.7 million. The increase was primarily attributable to higher average loan balances, a decrease in deposit costs, and higher yields on debt securities. Also contributing was a $0.7 million increase in nonaccrual interest recoveries and loan fees.

Net interest margin for the first quarter of 2025 was 4.12%, compared to 3.96% for the fourth quarter of 2024, and net interest margin (tax-equivalent basis)⁽¹⁾ for the first quarter of 2025 was 4.16%, compared to 4.01% for the fourth quarter of 2024. The increase was primarily attributable to higher yields on interest-earning assets, which increased 9 basis points to 5.34%, and lower funding costs, which decreased 7 basis points to 1.32%. Additionally, an increase in the contribution of nonaccrual interest recoveries and loan fees accounted for 5 basis points of the increase in net interest margin.

Relative to the first quarter of 2024, net interest margin increased 18 basis points from 3.94% and net interest margin (tax-equivalent basis)⁽¹⁾ increased 17 basis points from 3.99%. These increases were primarily attributable to higher yields on interest-earning assets, a decrease in funding costs, and an increase in nonaccrual interest recoveries and loan fees. Additionally, an increase in the contribution of nonaccrual interest recoveries and loan fees accounted for 6 basis points of the increase in net interest margin.
____________________________________
(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

Noninterest Income

Noninterest income for the first quarter of 2025 was $9.3 million, a 20.0% decrease from $11.6 million for the fourth quarter of 2024. The decrease was primarily attributable to changes in the mortgage servicing rights (“MSR”) fair value adjustment, with a $0.3 million negative MSR fair value adjustment included in the first quarter 2025 results compared to a $1.3 million positive MSR fair value adjustment included in the fourth quarter 2024 results. Further contributing to the decrease was a $0.3 million decrease in wealth management fees, primarily driven by a seasonal decrease in farm management income, a $0.3 million decrease in income on bank owned life insurance, primarily due to the absence of a $0.2 million gain on life insurance proceeds included in the fourth quarter 2024 results, and a $0.2 million decrease in card income. Partially offsetting these decreases was the absence of a $0.3 million realized loss on sale of debt securities included in the fourth quarter 2024 results.

Relative to the first quarter of 2024, noninterest income increased 65.4% from $5.6 million. The increase was primarily attributable to the absence of $3.4 million in realized losses on the sale of debt securities included in the first quarter 2024 results.

Noninterest Expense

Noninterest expense for the first quarter of 2025 was $31.9 million, a 3.3% increase from $30.9 million for the fourth quarter of 2024. The increase was primarily attributable to a $1.3 million increase in salaries expense, primarily driven by seasonal variations in vacation accruals and annual merit increases which took effect in early March, and a $0.6 million increase in employee benefits expense, primarily attributable to higher medical benefit costs. Partially offsetting these increases were a $0.3 million decrease in other noninterest expense and a $0.3 million decrease in data processing expense.

Relative to the first quarter of 2024, noninterest expense increased 2.1% from $31.3 million. The increase was primarily attributable to a $0.5 million increase in employee benefits expense, primarily driven by increased medical benefit costs, and a $0.4 million increase in salaries expense. Partially offsetting these increases was a $0.2 million decrease in data processing expense.

Income Taxes

During the first quarter of 2025 our effective tax rate decreased to 25.2% when compared to 26.0% during the fourth quarter of 2024. This decrease was primarily related to a $0.2 million tax benefit from stock-based compensation that vested during the quarter. Additionally, during the second quarter of 2025, we expect to recognize an additional $0.3 million of tax expense related to the reversal of a stranded tax effect included in accumulated other comprehensive income in connection with the maturity of a derivative designated as a cash flow hedge.

Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $3.46 billion at March 31, 2025, compared with $3.47 billion at December 31, 2024, and $3.35 billion at March 31, 2024. Total loans as of March 31, 2025 were nearly unchanged when compared to December 31, 2024 with a $23.2 million increase in grain elevator lines of credit in the commercial and industrial segment, due to seasonally higher line utilization, partially offset by a $12.0 million reduction on two lines of credit that funded shortly before and paid off after December 31, 2024, as noted in the previous quarter’s earnings release. Larger payoffs in the one-to-four family residential, multi-family, and commercial real estate – non-owner occupied segments were partially offset by draws on existing loans in the construction and development segment and new originations in the municipal, consumer, and other segment. Additionally, average loan balances increased $73.4 million, or 2.2%, from the fourth quarter of 2024 to the first quarter of 2025.

Deposits

Total deposits were $4.38 billion at March 31, 2025, compared with $4.32 billion at December 31, 2024, and $4.36 billion at March 31, 2024. The $66.3 million increase from December 31, 2024 was primarily attributable to higher balances maintained in existing retail accounts. Additionally, the vast majority of repurchase agreement account balances at December 31, 2024 were transitioned to reciprocal interest-bearing demand deposit accounts during the first quarter of 2025.

Asset Quality

Nonperforming assets totaled $5.6 million, or 0.11% of total assets, at March 31, 2025, compared with $8.0 million, or 0.16% of total assets, at December 31, 2024, and $9.9 million, or 0.20% of total assets, at March 31, 2024. Additionally, of the $5.1 million of nonperforming loans held as of March 31, 2025, $1.4 million is either wholly or partially guaranteed by the U.S. government. The $2.5 million decrease in nonperforming assets from December 31, 2024 was primarily attributable to the pay-off of a $1.6 million nonaccrual commercial real estate – non-owner occupied credit.

The Company recorded a provision for credit losses of $0.6 million for the first quarter of 2025. The provision for credit losses primarily reflects a $0.8 million increase in required reserves resulting from changes in qualitative factors; a $0.1 million increase in required reserves driven by changes within the portfolio; and a $0.3 million decrease in specific reserves.

The Company had net charge-offs of $0.4 million, or 0.05% of average loans on an annualized basis, for the first quarter of 2025, compared to net charge-offs of $0.7 million, or 0.08% of average loans on an annualized basis, for the fourth quarter of 2024, and net recoveries of $0.2 million, or 0.02% of average loans on an annualized basis, for the first quarter of 2024.

The Company’s allowance for credit losses was 1.22% of total loans and 825% of nonperforming loans at March 31, 2025, compared with 1.21% of total loans and 549% of nonperforming loans at December 31, 2024. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $3.2 million as of March 31, 2025, compared with $3.1 million as of December 31, 2024.

Capital

As of March 31, 2025, the Company exceeded all regulatory capital requirements under Basel III as summarized in the following table:

	March 31, 2025		For Capital Adequacy Purposes With Capital Conservation Buffer

Total capital to risk-weighted assets	16.85	%	10.50	%
Tier 1 capital to risk-weighted assets	14.77		8.50
Common equity tier 1 capital ratio	13.48		7.00
Tier 1 leverage ratio	11.64		4.00

The ratio of tangible common equity to tangible assets⁽¹⁾ increased to 9.73% as of March 31, 2025, from 9.42% as of December 31, 2024, and tangible book value per share⁽¹⁾ increased by $0.63 to $15.43 as of March 31, 2025, when compared to December 31, 2024.

During the first quarter of 2025, the Company did not repurchase shares of its common stock under its stock repurchase program. The Company’s Board of Directors has authorized the repurchase of up to $15.0 million of HBT Financial common stock under its stock repurchase program, which is in effect until January 1, 2026. As of March 31, 2025, the Company had $15.0 million remaining under the stock repurchase program.
____________________________________
(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

About HBT Financial, Inc.

HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. HBT Financial provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa through 66 full-service branches. As of March 31, 2025, HBT Financial had total assets of $5.1 billion, total loans of $3.5 billion, and total deposits of $4.4 billion.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include adjusted net income, adjusted earnings per share, adjusted ROAA, pre-provision net revenue, pre-provision net revenue less charge-offs (recoveries), adjusted pre-provision net revenue, adjusted pre-provision net revenue less charge-offs (recoveries), net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), efficiency ratio (tax-equivalent basis), adjusted efficiency ratio (tax-equivalent basis), the ratio of tangible common equity to tangible assets, tangible book value per share, adjusted ROAE, ROATCE, and adjusted ROATCE. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the “Reconciliation of Non-GAAP Financial Measures” tables.

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release contains, and future oral and written statements of the Company and its management may contain, “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “will,” “propose,” “may,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “continue,” or “should,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Factors that could cause actual results to differ materially from these forward-looking statements 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 and supply chain constraints); (ii) effects on the U.S. economy resulting from the threat or implementation of, or changes to, existing policies and executive orders including tariffs, immigration policy, regulatory or other governmental agencies, foreign policy and tax regulations; (iii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other 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 and revised accounting policies and practices, as may be adopted by state and federal regulatory banking agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (v) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the bank failures in 2023; (vi) the imposition of tariffs or other governmental policies impacting the value of products produced by the Company’s commercial borrowers; (vii) changes in interest rates and prepayment rates of the Company’s assets; (viii) 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; (ix) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (x) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (xi) the loss of key executives and employees, talent shortages and employee turnover; (xii) changes in consumer spending; (xiii) unexpected outcomes or costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company; (xiv) the economic impact on the Company and its customers of climate change, natural disasters and of exceptional weather occurrences such as tornadoes, floods and blizzards; (xv) fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates; (xvi) credit risks and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio (including commercial real estate loans) and large loans to certain borrowers; (xvii) the overall health of the local and national real estate market; (xviii) the ability to maintain an adequate level of allowance for credit losses on loans; (xix) 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; (xx) 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; (xxi) the level of nonperforming assets on our balance sheet; (xxii) interruptions involving our information technology and communications systems or third-party servicers; (xxiii) 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; (xxiv) the effectiveness of the Company’s risk management framework, and (xxv) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking 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 Securities and Exchange Commission.

CONTACT:
Peter Chapman
HBTIR@hbtbank.com
(309) 664-4556


HBT Financial, Inc. Unaudited Consolidated Financial Summary

	As of or for the Three Months Ended
(dollars in thousands, except per share data)	March 31, 2025			December 31, 2024			March 31, 2024
Interest and dividend income	$	63,138		$	62,798		$	61,961
Interest expense		14,430			15,397			15,273
Net interest income		48,708			47,401			46,688
Provision for credit losses		576			725			527
Net interest income after provision for credit losses		48,132			46,676			46,161
Noninterest income		9,306			11,630			5,626
Noninterest expense		31,935			30,908			31,268
Income before income tax expense		25,503			27,398			20,519
Income tax expense		6,428			7,126			5,261
Net income	$	19,075		$	20,272		$	15,258

Earnings per share – diluted	$	0.60		$	0.64		$	0.48

Adjusted net income ⁽¹⁾	$	19,253		$	19,546		$	18,073
Adjusted earnings per share – diluted ⁽¹⁾		0.61			0.62			0.57

Book value per share	$	17.86		$	17.26		$	15.71
Tangible book value per share ⁽¹⁾		15.43			14.80			13.19

Shares of common stock outstanding		31,631,431			31,559,366			31,612,888
Weighted average shares of common stock outstanding, including all dilutive potential shares		31,711,671			31,702,864			31,803,187

SUMMARY RATIOS
Net interest margin *		4.12	%		3.96	%		3.94	%
Net interest margin (tax-equivalent basis) * ⁽¹⁾⁽²⁾		4.16			4.01			3.99

Efficiency ratio		53.85	%		51.16	%		58.41	%
Efficiency ratio (tax-equivalent basis) ⁽¹⁾⁽²⁾		53.35			50.68			57.78

Loan to deposit ratio		78.95	%		80.27	%		76.73	%

Return on average assets *		1.54	%		1.61	%		1.23	%
Return on average stockholders’ equity *		13.95			14.89			12.42
Return on average tangible common equity * ⁽¹⁾		16.20			17.40			14.83

Adjusted return on average assets * ⁽¹⁾		1.55	%		1.56	%		1.45	%
Adjusted return on average stockholders’ equity * ⁽¹⁾		14.08			14.36			14.72
Adjusted return on average tangible common equity * ⁽¹⁾		16.36			16.77			17.57

CAPITAL
Total capital to risk-weighted assets		16.85	%		16.51	%		15.79	%
Tier 1 capital to risk-weighted assets		14.77			14.50			13.77
Common equity tier 1 capital ratio		13.48			13.21			12.44
Tier 1 leverage ratio		11.64			11.51			10.65
Total stockholders’ equity to total assets		11.10			10.82			9.85
Tangible common equity to tangible assets ⁽¹⁾		9.73			9.42			8.40

ASSET QUALITY
Net charge-offs (recoveries) to average loans *		0.05	%		0.08	%		(0.02)	%
Allowance for credit losses to loans, before allowance for credit losses		1.22			1.21			1.22
Nonperforming loans to loans, before allowance for credit losses		0.15			0.22			0.29
Nonperforming assets to total assets		0.11			0.16			0.20

____________________________________

* Annualized measure.

(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
(2) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.


HBT Financial, Inc. Unaudited Consolidated Financial Summary Consolidated Statements of Income

	Three Months Ended
(dollars in thousands, except per share data)	March 31, 2025			December 31, 2024			March 31, 2024
INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable	$	53,369		$	52,587		$	51,926
Federally tax exempt		1,168			1,199			1,094
Debt securities:
Taxable		6,936			6,829			6,204
Federally tax exempt		469			482			597
Interest-bearing deposits in bank		1,065			1,520			1,952
Other interest and dividend income		131			181			188
Total interest and dividend income		63,138			62,798			61,961
INTEREST EXPENSE
Deposits		12,939			13,672			13,593
Securities sold under agreements to repurchase		22			179			152
Borrowings		109			115			125
Subordinated notes		470			470			470
Junior subordinated debentures issued to capital trusts		890			961			933
Total interest expense		14,430			15,397			15,273
Net interest income		48,708			47,401			46,688
PROVISION FOR CREDIT LOSSES		576			725			527
Net interest income after provision for credit losses		48,132			46,676			46,161
NONINTEREST INCOME
Card income		2,548			2,797			2,616
Wealth management fees		2,841			3,138			2,547
Service charges on deposit accounts		1,944			2,080			1,869
Mortgage servicing		990			1,158			1,055
Mortgage servicing rights fair value adjustment		(308	)		1,331			80
Gains on sale of mortgage loans		252			409			298
Realized gains (losses) on sales of securities		—			(315	)		(3,382	)
Unrealized gains (losses) on equity securities		8			(83	)		(16	)
Gains (losses) on foreclosed assets		13			7			87
Gains (losses) on other assets		54			2			(635	)
Income on bank owned life insurance		164			415			164
Other noninterest income		800			691			943
Total noninterest income		9,306			11,630			5,626
NONINTEREST EXPENSE
Salaries		17,053			15,784			16,657
Employee benefits		3,285			2,649			2,805
Occupancy of bank premises		2,625			2,773			2,582
Furniture and equipment		445			460			550
Data processing		2,717			2,998			2,925
Marketing and customer relations		1,144			948			996
Amortization of intangible assets		695			709			710
FDIC insurance		562			557			560
Loan collection and servicing		383			653			452
Foreclosed assets		5			31			49
Other noninterest expense		3,021			3,346			2,982
Total noninterest expense		31,935			30,908			31,268
INCOME BEFORE INCOME TAX EXPENSE		25,503			27,398			20,519
INCOME TAX EXPENSE		6,428			7,126			5,261
NET INCOME	$	19,075		$	20,272		$	15,258

EARNINGS PER SHARE – BASIC	$	0.60		$	0.64		$	0.48
EARNINGS PER SHARE – DILUTED	$	0.60		$	0.64		$	0.48
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING		31,584,989			31,559,366			31,662,954


HBT Financial, Inc. Unaudited Consolidated Financial Summary Consolidated Balance Sheets

(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024
ASSETS
Cash and due from banks	$	25,005		$	29,552		$	19,989
Interest-bearing deposits with banks		186,586			108,140			240,223
Cash and cash equivalents		211,591			137,692			260,212

Interest-bearing time deposits with banks		—			—			515
Debt securities available-for-sale, at fair value		706,135			698,049			669,020
Debt securities held-to-maturity		490,398			499,858			517,472
Equity securities with readily determinable fair value		3,323			3,315			3,324
Equity securities with no readily determinable fair value		2,629			2,629			2,622
Restricted stock, at cost		5,086			5,086			5,155
Loans held for sale		2,721			1,586			3,479

Loans, before allowance for credit losses		3,461,778			3,466,146			3,345,962
Allowance for credit losses		(42,111	)		(42,044	)		(40,815	)
Loans, net of allowance for credit losses		3,419,667			3,424,102			3,305,147

Bank owned life insurance		24,153			23,989			24,069
Bank premises and equipment, net		67,272			66,758			64,755
Bank premises held for sale		190			317			317
Foreclosed assets		460			367			277
Goodwill		59,820			59,820			59,820
Intangible assets, net		17,148			17,843			19,972
Mortgage servicing rights, at fair value		18,519			18,827			19,081
Investments in unconsolidated subsidiaries		1,614			1,614			1,614
Accrued interest receivable		22,735			24,770			23,117
Other assets		38,731			46,280			60,542
Total assets	$	5,092,192		$	5,032,902		$	5,040,510

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	1,065,874		$	1,046,405		$	1,047,074
Interest-bearing		3,318,716			3,271,849			3,313,500
Total deposits		4,384,590			4,318,254			4,360,574

Securities sold under agreements to repurchase		2,698			28,969			31,864
Federal Home Loan Bank advances		7,209			13,231			12,725
Subordinated notes		39,573			39,553			39,494
Junior subordinated debentures issued to capital trusts		52,864			52,849			52,804
Other liabilities		40,201			35,441			46,368
Total liabilities		4,527,135			4,488,297			4,543,829

Stockholders’ Equity
Common stock		329			328			328
Surplus		297,024			297,297			296,054
Retained earnings		329,169			316,764			278,353
Accumulated other comprehensive income (loss)		(38,446	)		(46,765	)		(56,048	)
Treasury stock at cost		(23,019	)		(23,019	)		(22,006	)
Total stockholders’ equity		565,057			544,605			496,681
Total liabilities and stockholders’ equity	$	5,092,192		$	5,032,902		$	5,040,510
SHARES OF COMMON STOCK OUTSTANDING		31,631,431			31,559,366			31,612,888


HBT Financial, Inc. Unaudited Consolidated Financial Summary

(dollars in thousands)	March 31, 2025		December 31, 2024		March 31, 2024

LOANS
Commercial and industrial	$	441,261	$	428,389	$	402,206
Commercial real estate – owner occupied		321,990		322,316		294,967
Commercial real estate – non-owner occupied		891,022		899,565		890,251
Construction and land development		376,046		374,657		345,991
Multi-family		424,096		431,524		421,573
One-to-four family residential		455,376		463,968		485,948
Agricultural and farmland		292,240		293,375		287,205
Municipal, consumer, and other		259,747		252,352		217,821
Total loans	$	3,461,778	$	3,466,146	$	3,345,962

(dollars in thousands)	March 31, 2025		December 31, 2024		March 31, 2024

DEPOSITS
Noninterest-bearing deposits	$	1,065,874	$	1,046,405	$	1,047,074
Interest-bearing deposits:
Interest-bearing demand		1,143,677		1,099,061		1,139,172
Money market		812,146		820,825		802,685
Savings		575,558		566,533		602,739
Time		787,335		785,430		713,142
Brokered		—		—		55,762
Total interest-bearing deposits		3,318,716		3,271,849		3,313,500
Total deposits	$	4,384,590	$	4,318,254	$	4,360,574


HBT Financial, Inc. Unaudited Consolidated Financial Summary

	Three Months Ended
	March 31, 2025							December 31, 2024							March 31, 2024
(dollars in thousands)	Average Balance			Interest		Yield/Cost *		Average Balance			Interest		Yield/Cost *		Average Balance			Interest		Yield/Cost *

ASSETS
Loans	$	3,460,906		$	54,537	6.39	%	$	3,387,541		$	53,786	6.32	%	$	3,371,219		$	53,020	6.33	%
Debt securities		1,204,424			7,405	2.49			1,208,404			7,311	2.41			1,213,947			6,801	2.25
Deposits with banks		120,014			1,065	3.60			149,691			1,520	4.04			167,297			1,952	4.69
Other		12,677			131	4.19			12,698			181	5.68			12,986			188	5.82
Total interest-earning assets		4,798,021		$	63,138	5.34	%		4,758,334		$	62,798	5.25	%		4,765,449		$	61,961	5.23	%
Allowance for credit losses		(42,061	)						(40,942	)						(40,238	)
Noninterest-earning assets		276,853							277,074							278,253
Total assets	$	5,032,813						$	4,994,466						$	5,003,464

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,120,608		$	1,453	0.53	%	$	1,088,082		$	1,351	0.49	%	$	1,127,684		$	1,311	0.47	%
Money market		807,728			4,397	2.21			787,768			4,444	2.24			812,684			4,797	2.37
Savings		569,494			370	0.26			562,833			389	0.27			611,224			443	0.29
Time		784,099			6,719	3.48			796,494			7,439	3.72			664,498			5,925	3.59
Brokered		—			—	—			3,261			49	5.96			82,150			1,117	5.47
Total interest-bearing deposits		3,281,929			12,939	1.60			3,238,438			13,672	1.68			3,298,240			13,593	1.66
Securities sold under agreements to repurchase		8,754			22	1.02			31,624			179	2.26			32,456			152	1.89
Borrowings		12,890			109	3.41			13,370			115	3.42			13,003			125	3.87
Subordinated notes		39,563			470	4.82			39,543			470	4.73			39,484			470	4.78
Junior subordinated debentures issued to capital trusts		52,856			890	6.83			52,841			961	7.23			52,796			933	7.11
Total interest-bearing liabilities		3,395,992		$	14,430	1.72	%		3,375,816		$	15,397	1.81	%		3,435,979		$	15,273	1.79	%
Noninterest-bearing deposits		1,045,733							1,041,471							1,036,402
Noninterest-bearing liabilities		36,373							35,644							37,107
Total liabilities		4,478,098							4,452,931							4,509,488
Stockholders’ Equity		554,715							541,535							493,976
Total liabilities and stockholders’ equity	$	5,032,813						$	4,994,466						$	5,003,464

Net interest income/Net interest margin ⁽¹⁾				$	48,708	4.12	%				$	47,401	3.96	%				$	46,688	3.94	%
Tax-equivalent adjustment ⁽²⁾					545	0.04						562	0.05						575	0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) ^{(2) (3)}				$	49,253	4.16	%				$	47,963	4.01	%				$	47,263	3.99	%
Net interest rate spread ⁽⁴⁾						3.62	%						3.44	%						3.44	%
Net interest-earning assets ⁽⁵⁾	$	1,402,029						$	1,382,518						$	1,329,470
Ratio of interest-earning assets to interest-bearing liabilities		1.41							1.41							1.39
Cost of total deposits						1.21	%						1.27	%						1.26	%
Cost of funds						1.32							1.39							1.37

____________________________________

* Annualized measure.

(1)   Net interest margin represents net interest income divided by average total interest-earning assets.
(2)   On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(3)   See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
(4)   Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5)   Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.


HBT Financial, Inc. Unaudited Consolidated Financial Summary

(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

NONPERFORMING ASSETS
Nonaccrual	$	5,102		$	7,652		$	9,657
Past due 90 days or more, still accruing		4			4			—
Total nonperforming loans		5,106			7,656			9,657
Foreclosed assets		460			367			277
Total nonperforming assets	$	5,566		$	8,023		$	9,934

Nonperforming loans that are wholly or partially guaranteed by the U.S. Government	$	1,350		$	1,573		$	2,676

Allowance for credit losses	$	42,111		$	42,044		$	40,815
Loans, before allowance for credit losses		3,461,778			3,466,146			3,345,962

CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses		1.22	%		1.21	%		1.22	%
Allowance for credit losses to nonaccrual loans		825.38			549.45			422.65
Allowance for credit losses to nonperforming loans		824.74			549.16			422.65
Nonaccrual loans to loans, before allowance for credit losses		0.15			0.22			0.29
Nonperforming loans to loans, before allowance for credit losses		0.15			0.22			0.29
Nonperforming assets to total assets		0.11			0.16			0.20
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets		0.16			0.23			0.30

	Three Months Ended
(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

ALLOWANCE FOR CREDIT LOSSES
Beginning balance	$	42,044		$	40,966		$	40,048
Provision for credit losses		496			1,771			560
Charge-offs		(665	)		(1,086	)		(227	)
Recoveries		236			393			434
Ending balance	$	42,111		$	42,044		$	40,815

Net charge-offs (recoveries)	$	429		$	693		$	(207	)
Average loans		3,460,906			3,387,541			3,371,219

Net charge-offs (recoveries) to average loans *		0.05	%		0.08	%		(0.02)	%

____________________________________

* Annualized measure.

	Three Months Ended
(dollars in thousands)	March 31, 2025		December 31, 2024			March 31, 2024

PROVISION FOR CREDIT LOSSES
Loans	$	496	$	1,771		$	560
Unfunded lending-related commitments		80		(1,046	)		(33	)
Total provision for credit losses	$	576	$	725		$	527

Reconciliation of Non-GAAP Financial Measures –
Adjusted Net Income and Adjusted Return on Average Assets

	Three Months Ended
(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

Net income	$	19,075		$	20,272		$	15,258
Less: adjustments
Gains (losses) on closed branch premises		59			—			(635	)
Realized gains (losses) on sales of securities		—			(315	)		(3,382	)
Mortgage servicing rights fair value adjustment		(308	)		1,331			80
Total adjustments		(249	)		1,016			(3,937	)
Tax effect of adjustments ⁽¹⁾		71			(290	)		1,122
Total adjustments after tax effect		(178	)		726			(2,815	)
Adjusted net income	$	19,253		$	19,546		$	18,073

Average assets	$	5,032,813		$	4,994,466		$	5,003,464

Return on average assets *		1.54	%		1.61	%		1.23	%
Adjusted return on average assets *		1.55			1.56			1.45

____________________________________

* Annualized measure.

(1) Assumes a federal income tax rate of 21% and a state tax rate of 9.5%.

Reconciliation of Non-GAAP Financial Measures –
Adjusted Earnings Per Share — Basic and Diluted

	Three Months Ended
(dollars in thousands, except per share amounts)	March 31, 2025		December 31, 2024		March 31, 2024

Numerator:
Net income	$	19,075	$	20,272	$	15,258

Adjusted net income	$	19,253	$	19,546	$	18,073

Denominator:
Weighted average common shares outstanding		31,584,989		31,559,366		31,662,954
Dilutive effect of outstanding restricted stock units		126,682		143,498		140,233
Weighted average common shares outstanding, including all dilutive potential shares		31,711,671		31,702,864		31,803,187

Earnings per share – basic	$	0.60	$	0.64	$	0.48
Earnings per share – diluted	$	0.60	$	0.64	$	0.48

Adjusted earnings per share – basic	$	0.61	$	0.62	$	0.57
Adjusted earnings per share – diluted	$	0.61	$	0.62	$	0.57

Reconciliation of Non-GAAP Financial Measures –
Pre-Provision Net Revenue, Pre-Provision Net Revenue Less Net Charge-offs (Recoveries),
Adjusted Pre-Provision Net Revenue, and Adjusted Pre-Provision Net Revenue Less Net Charge-offs (Recoveries)

	Three Months Ended
(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

Net interest income	$	48,708		$	47,401		$	46,688
Noninterest income		9,306			11,630			5,626
Noninterest expense		(31,935	)		(30,908	)		(31,268	)
Pre-provision net revenue		26,079			28,123			21,046
Less: adjustments
Gains (losses) on closed branch premises		59			—			(635	)
Realized gains (losses) on sales of securities		—			(315	)		(3,382	)
Mortgage servicing rights fair value adjustment		(308	)		1,331			80
Total adjustments		(249	)		1,016			(3,937	)
Adjusted pre-provision net revenue	$	26,328		$	27,107		$	24,983

Pre-provision net revenue	$	26,079		$	28,123		$	21,046
Less: net charge-offs (recoveries)		429			693			(207	)
Pre-provision net revenue less net charge-offs	$	25,650		$	27,430		$	21,253

Adjusted pre-provision net revenue	$	26,328		$	27,107		$	24,983
Less: net charge-offs (recoveries)		429			693			(207	)
Adjusted pre-provision net revenue less net charge-offs	$	25,899		$	26,414		$	25,190

Reconciliation of Non-GAAP Financial Measures –
Net Interest Income (Tax-equivalent Basis) and Net Interest Margin (Tax-equivalent Basis)

	Three Months Ended
(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

Net interest income (tax-equivalent basis)
Net interest income	$	48,708		$	47,401		$	46,688
Tax-equivalent adjustment ⁽¹⁾		545			562			575
Net interest income (tax-equivalent basis) ⁽¹⁾	$	49,253		$	47,963		$	47,263

Net interest margin (tax-equivalent basis)
Net interest margin *		4.12	%		3.96	%		3.94	%
Tax-equivalent adjustment * ⁽¹⁾		0.04			0.05			0.05
Net interest margin (tax-equivalent basis) * ⁽¹⁾		4.16	%		4.01	%		3.99	%

Average interest-earning assets	$	4,798,021		$	4,758,334		$	4,765,449

____________________________________

* Annualized measure.

(1) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

Reconciliation of Non-GAAP Financial Measures –
Efficiency Ratio (Tax-equivalent Basis) and Adjusted Efficiency Ratio (Tax-equivalent Basis)

	Three Months Ended
(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

Total noninterest expense	$	31,935		$	30,908		$	31,268
Less: amortization of intangible assets		695			709			710
Noninterest expense excluding amortization of intangible assets	$	31,240		$	30,199		$	30,558

Net interest income	$	48,708		$	47,401		$	46,688
Total noninterest income		9,306			11,630			5,626
Operating revenue		58,014			59,031			52,314
Tax-equivalent adjustment ⁽¹⁾		545			562			575
Operating revenue (tax-equivalent basis) ⁽¹⁾		58,559			59,593			52,889
Less: adjustments to noninterest income
Gains (losses) on closed branch premises		59			—			(635	)
Realized gains (losses) on sales of securities		—			(315	)		(3,382	)
Mortgage servicing rights fair value adjustment		(308	)		1,331			80
Total adjustments to noninterest income		(249	)		1,016			(3,937	)
Adjusted operating revenue (tax-equivalent basis) ⁽¹⁾	$	58,808		$	58,577		$	56,826

Efficiency ratio		53.85	%		51.16	%		58.41	%
Efficiency ratio (tax-equivalent basis) ⁽¹⁾		53.35			50.68			57.78
Adjusted efficiency ratio (tax-equivalent basis) ⁽¹⁾		53.12			51.55			53.77

____________________________________
(1) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

Reconciliation of Non-GAAP Financial Measures –
Ratio of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share

(dollars in thousands, except per share data)	March 31, 2025			December 31, 2024			March 31, 2024

Tangible Common Equity
Total stockholders’ equity	$	565,057		$	544,605		$	496,681
Less: Goodwill		59,820			59,820			59,820
Less: Intangible assets, net		17,148			17,843			19,972
Tangible common equity	$	488,089		$	466,942		$	416,889

Tangible Assets
Total assets	$	5,092,192		$	5,032,902		$	5,040,510
Less: Goodwill		59,820			59,820			59,820
Less: Intangible assets, net		17,148			17,843			19,972
Tangible assets	$	5,015,224		$	4,955,239		$	4,960,718

Total stockholders’ equity to total assets		11.10	%		10.82	%		9.85	%
Tangible common equity to tangible assets		9.73			9.42			8.40

Shares of common stock outstanding		31,631,431			31,559,366			31,612,888

Book value per share	$	17.86		$	17.26		$	15.71
Tangible book value per share		15.43			14.80			13.19

Reconciliation of Non-GAAP Financial Measures –
Return on Average Tangible Common Equity,
Adjusted Return on Average Stockholders’ Equity and Adjusted Return on Average Tangible Common Equity

	Three Months Ended
(dollars in thousands)	March 31, 2025			December 31, 2024			March 31, 2024

Average Tangible Common Equity
Total stockholders’ equity	$	554,715		$	541,535		$	493,976
Less: Goodwill		59,820			59,820			59,820
Less: Intangible assets, net		17,480			18,170			20,334
Average tangible common equity	$	477,415		$	463,545		$	413,822

Net income	$	19,075		$	20,272		$	15,258
Adjusted net income		19,253			19,546			18,073

Return on average stockholders’ equity *		13.95	%		14.89	%		12.42	%
Return on average tangible common equity *		16.20			17.40			14.83

Adjusted return on average stockholders’ equity *		14.08	%		14.36	%		14.72	%
Adjusted return on average tangible common equity *		16.36			16.77			17.57

____________________________________

* Annualized measure.

The MIL Network –

April 21, 2025

Category: Ukraine

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UK-Ukraine TechBridge Industry Second Steering Board Communiqué

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