Guess? to exit some retail stores in North America to boost profit by FY27
The company intends to turn over its direct operations in China to a local partner.
Guess? chief executive officer Carlos Alberini stated: 'As we enter fiscal year 2026, we are excited about our growth opportunities for our core Guess business, our recently launched Guess Jeans brand and our just acquired rag & bone business. We are focusing our strategic initiatives on increasing direct-to-consumer sales productivity globally and improving profitability through business and portfolio optimisation.
"In connection with this, after many years of running our own direct operations in Greater China, we believe there is an opportunity for this market to be directly developed and managed by a local, highly experienced partner. We have already met several potential candidates for consideration and we expect for this transition to be completed before the end of this fiscal year.'
The company also revealed a planned exit from certain retail stores in North America.
Alberini continued: 'In North America, we see an opportunity to streamline our Guess full price store portfolio by exiting non-strategic, unprofitable locations, and to reduce costs by consolidating some of our infrastructure supporting this business. Our fiscal 2026 outlook includes the anticipated impact from these actions and we expect that, together, they will unlock approximately $30 million in operating profit in fiscal 2027.'
The developments were revealed as the company announced its fourth quarter and full fiscal year 2025 (FY25) operational performance results.
It reported a significant contraction in net earnings, down 70% to $60.4m for FY25 from the previous year's $198.2m.
Earnings include an unrealised loss of $60.7m stemming from a revaluation of derivatives linked to the firm's convertible senior notes maturing in 2028, and associated hedge instruments.
A substantial reduction was also observed in the company's diluted earnings per share, which fell 75% to $0.77 based on generally accepted accounting principles (GAAP), compared to $3.09 in FY24.
Despite these challenges, Guess? experienced an 8% surge in total net revenue, reaching $3.00bn for the fiscal year concluding on 1 February 2025, up from $2.78bn the previous year.
Operational earnings for Guess? in FY25 were adversely affected, witnessing a 34% decline to $173.8m from $263.3m recorded in fiscal 2024.
In the fourth quarter of fiscal 2025, Guess? saw net earnings of $81.4m, marking a decrease of 29% from the corresponding quarter of the previous year, which stood at $115.3m.
This included an unrealised loss of $18.9m due to derivative revaluation.
EPS for the company during this quarter dropped by 32% to $1.16, while total net revenue for the period increased by 5% to $932.3m from $891.1m in the same quarter of the preceding year.
GAAP operational earnings for the fourth quarter also decreased 28.4% to $103.6m compared to $144.8m in the same quarter of the previous year.
The company ended the fiscal year with a total of 1,070 directly operated retail stores the Americas, Asia and Europe.
Looking ahead to fiscal 2025, Guess? projects a net revenue increase ranging from 3.9% to 6.2%.
The company anticipates operational earnings between $133m and $165m and projects an operating margin expansion of between 4.5% and 5.4%.
On 2 April 2024, Guess? completed its acquisition of New York fashion label rag & bone through a partnership with WHP Global, acquiring all operating assets and assuming related liabilities of rag & bone's business operations.
The company formed a joint venture with WHP Global that acquired rag & bone's intellectual property rights, integrating them into its existing business segments.
In March 2025, WHP Global and Guess? reached a new licensing agreement with Signal Brands to boost the development of New York-based fashion brand rag & bone's handbags and small leather products line.
In separate development, Guess? appointed Alberto Toni as the chief financial officer (CFO).
Dennis Secor, who has served as interim CFO, will continue as executive vice-president until 12 September 2025 to ensure a smooth transition.
"Guess? to exit some retail stores in North America to boost profit by FY27" was originally created and published by Retail Insight Network, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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Additionally, the average balance of loans increased $22.2 million to $1.10 billion from $1.08 billion, causing a $349,000 increase in interest income on loans. Interest income on taxable investment securities increased $16,000, or 0.6%, to $2.9 million for the three months ended June 30, 2025 compared to $2.8 million for the three months ended June 30, 2024 driven by a $18.5 million increase in average balances, partially offset by a 26 bp decrease in average yield. The increase in volume was driven by a $22.9 million increase in the average balance of collateralized loan obligation ('CLO') securities as the Bank executed a leverage strategy during 2024 to purchase these assets funded with cash reserves and brokered certificates of deposits. The decrease in yield resulted from the reductions in the federal funds rate since September 2024. Interest income on interest-earning deposits at other banks decreased $982,000 to $331,000 for the three months ended June 30, 2025 compared to $1.3 million for the three months ended June 30, 2024 driven by a 125 bp decrease in the average yield and a $67.7 million decrease in average balances. The decrease in the yield was directly related to the Federal Reserve's reductions in the federal funds rate. Interest expense decreased $1.2 million, or 16.7%, to $6.2 million for the three months ended June 30, 2025 compared to $7.5 million for the three months ended June 30, 2024. Interest expense on deposits decreased $1.3 million, or 19.0%, to $5.7 million for the three months ended June 30, 2025 compared to $7.1 million for the three months ended June 30, 2024. The cost of interest-bearing deposits declined 47 bps to 2.28% for the three months ended June 30, 2025 from 2.75% for the three months ended June 30, 2024 due to the change in the deposit mix and the recent Federal Reserve federal funds rate decreases. The decrease in the cost of interest-bearing deposits accounted for a $1.2 million reduction in interest expense. Average interest-bearing deposit balances decreased $27.2 million, or 2.6%, to $1.01 billion as of June 30, 2025 compared to $1.03 billion as of June 30, 2024, primarily as the Bank strategically reduced brokered deposits and time deposit only relationships. The decrease in average balances accounted for a $161,000 reduction in interest expense. Provision for Credit Losses A provision for credit losses of $8,000 was recorded for the three months ended June 30, 2025. The provision for credit losses - loans was a $136,000 recovery and was primarily due to a reduction of reserve required for individually assessed loans and changes in loan concentrations, partially offset by additional reserve required for overall loan growth and a change in qualitative factors relating to economic conditions. The provision for credit losses - unfunded commitments was $144,000 and was due to an increase in unfunded commitments and an increase in funding rates. This compared to a net recovery of $36,000 recorded for the three months ended June 30, 2024 as the provision for credit losses - loans was $12,000 and was primarily due to an increase in the reserve required for individually assessed loans, partially offset by a decrease in loan balances while the provision for credit losses - unfunded commitments was a recovery of $48,000 and was due to a decrease in loss rates. Noninterest Income Noninterest income increased $243,000, or 35.3%, to $931,000 for the three months ended June 30, 2025, compared to $688,000 for the three months ended June 30, 2024. This resulted primarily from a $205,000 increase in service fees primarily related to corporate deposit and Individual Covered Health Reimbursement Arrangement accounts. Noninterest Expense Noninterest expense decreased $236,000, or 2.6%, to $8.7 million for the three months ended June 30, 2025 compared to $9.0 million for the three months ended June 30, 2024. Occupancy expense decreased $324,000 due to environmental remediation costs related to a construction project on one of the Bank's office locations recognized only in 2024 and certain property management cost savings initiatives implemented in 2025. Intangible amortization decreased $264,000 as the Bank's core deposit intangibles were fully amortized in 2024. Data processing expense decreased $250,000 due to costs associated with the implementation of a new loan origination system and financial dashboard platform during mid-2024. Pennsylvania shares tax expense decreased $154,000 due to $217,000 of refunds received on amended returns filed for prior years. Legal and professional fees decreased $91,000 primarily due to timing differences related to internal and external audit and tax services. These decreases were partially offset as salaries and benefits increased $663,000, or 15.0%, to $5.1 million primarily due to merit increases, revenue producing staff additions and higher insurance benefit costs, partially offset by savings realized due to the reduction in force implemented earlier this year. Equipment expense increased $74,000 due to higher depreciation expense associated with interactive teller machines, security system upgrades and other equipment placed into service in 2024. Statement of Financial Condition Review Assets Total assets increased $36.4 million, or 2.5%, to $1.52 billion at June 30, 2025, compared to $1.48 billion at December 31, 2024. Cash and due from banks increased $14.9 million, or 30.1%, to $64.5 million at June 30, 2025, compared to $49.6 million at December 31, 2024. Securities increased $5.0 million, or 1.9%, to $267.2 million at June 30, 2025, compared to $262.2 million at December 31, 2024. The securities balance was primarily impacted by security purchases and an increase in the market value of the portfolio, partially offset by principal repayments on amortizing securities and the sale of equity securities. Loans and Credit Quality Total loans increased $18.2 million, or 1.7%, to $1.11 billion compared to $1.09 billion, and included increases in commercial real estate and commercial and industrial loans of $27.7 million and $26.2 million, respectively, partially offset by decreases in construction, consumer and residential real estate loans of $14.0 million, $13.1 million and $8.7 million, respectively. The decrease in consumer loans resulted from a reduction in indirect automobile loan production due to the discontinuation of this product offering as of June 30, 2023. This portfolio is expected to continue to decline as resources are allocated and production efforts are focused on more profitable commercial products. Excluding the $8.3 million decrease in indirect automobile loans, total loans increased $26.4 million, or 2.4%. Loan production totaled $97.0 million while $51.5 million of loans were paid off since December 31, 2024. The allowance for credit losses (ACL) was $9.7 million at June 30, 2025 and $9.8 million at December 31, 2024. As a result, the ACL to total loans was 0.88% at June 30, 2025 and 0.90% at December 31, 2024. During the current year, the Company recorded a net recovery for credit losses of $32,000. The allowance for credit losses to nonperforming assets was 505.0% at June 30, 2025 and 548.1% at December 31, 2024. Net recoveries for the three months ended June 30, 2025 were $39,000, or 0.01% of average loans on an annualized basis. Net charge-offs for the three months ended June 30, 2024 were $67,000, or 0.02% of average loans on an annualized basis. Net charge-offs for the six months ended June 30, 2025 were $15,000. Net charge-offs for the six months ended June 30, 2024 were $50,000. Nonperforming loans, which include nonaccrual loans and accruing loans past due 90 days or more, were $1.8 million at June 30, 2025 and December 31, 2024. Nonperforming loans to total loans ratio was 0.16% at June 30, 2025 and December 31, 2024. Liabilities Total liabilities increased $35.4 million, or 2.7%, to $1.37 billion at June 30, 2025 compared to $1.33 billion at December 31, 2024. Deposits Total deposits increased $25.9 million, or 2.0%, to $1.31 billion as of June 30, 2025 compared to $1.28 billion at December 31, 2024. Interest-bearing demand, non interest-bearing demand and savings deposits increased $36.7 million, $10.8 million and $1.5 million, respectively while time deposits decreased $16.7 million and money market deposits decreased $6.3 million, respectively. This favorable change in the deposit mix was the result of an increased focus on building core banking relationships while strategically reducing time deposit-only relationships. Brokered time deposits totaled $79.0 million as of June 30, 2025 and $39.0 million as of December 31, 2024, all of which mature within three months and were utilized to fund the purchase of floating rate CLO securities. At June 30, 2025, FDIC insured deposits totaled approximately 61.0% of total deposits while an additional 14.8% of total deposits were collateralized with investment securities. Accrued Interest Payable and Other Liabilities Accrued interest payable and other liabilities increased $9.5 million, or 59.6%, to $25.5 million at June 30, 2025, compared to $16.0 million at December 31, 2024 primarily due to $9.0 million of syndicated national credits not yet settled. Stockholders' Equity Stockholders' equity increased $984,000, or 0.7%, to $148.4 million at June 30, 2025, compared to $147.4 million at December 31, 2024. The key factors positively impacting stockholders' equity was $5.9 million of net income for the current year, a $2.9 million decrease in accumulated other comprehensive loss and $1.1 million of shares issued as a result of stock option exercises, partially offset by $6.8 million of treasury shares purchased under the stock repurchase program and the payment of $2.5 million in dividends since December 31, 2024. Book value per share Book value per common share was $29.84 at June 30, 2025 compared to $28.71 at December 31, 2024, an increase of $1.13. Tangible book value per common share (Non-GAAP) was $27.88 at June 30, 2025, compared to $26.82 at December 31, 2024, an increase of $1.06. Refer to 'Explanation of Use of Non-GAAP Financial Measures' at the end of this Press Release. About CB Financial Services, Inc. CB Financial Services, Inc. is the bank holding company for Community Bank, a Pennsylvania-chartered commercial bank. Community Bank operates its branch network in southwestern Pennsylvania and West Virginia. Community Bank offers a broad array of retail and commercial lending and deposit services. For more information about CB Financial Services, Inc. and Community Bank, visit our website at Statement About Forward-Looking Statements Statements contained in this press release that are not historical facts may constitute forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and such forward-looking statements are subject to significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Act. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries include, but are not limited to, general and local economic conditions, changes in market interest rates, deposit flows, demand for loans, real estate values and competition, competitive products and pricing, the ability of our customers to make scheduled loan payments, loan delinquency rates and trends, our ability to manage the risks involved in our business, our ability to control costs and expenses, inflation, market and monetary fluctuations, changes in federal and state legislation and regulation applicable to our business, actions by our competitors, and other factors that may be disclosed in the Company's periodic reports as filed with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company assumes no obligation to update any forward-looking statements except as may be required by applicable law or regulation. (Dollars in thousands, except share and per share data) (Unaudited) Three Months Ended Six Months Ended Interest and Dividend Income: Loans, Including Fees $ 15,492 $ 14,528 $ 14,930 $ 14,945 $ 14,670 $ 30,020 $ 29,508 Securities: Taxable 2,860 2,777 3,096 3,289 2,844 5,637 5,148 Dividends 9 28 27 28 27 37 54 Other Interest and Dividend Income 399 514 1,378 1,511 1,398 912 2,216 Total Interest and Dividend Income 18,760 17,847 19,431 19,773 18,939 36,606 36,926 Interest Expense: Deposits 5,721 6,111 7,492 7,892 7,065 11,833 13,056 Short-Term Borrowings 108 23 — — — 131 — Other Borrowings 391 402 407 407 404 792 808 Total Interest Expense 6,220 6,536 7,899 8,299 7,469 12,756 13,864 Net Interest and Dividend Income 12,540 11,311 11,532 11,474 11,470 23,850 23,062 (Recovery) Provision for Credit Losses - Loans (136 ) 68 483 25 12 (68 ) (130 ) Provision (Recovery) for Credit Losses - Unfunded Commitments 144 (108 ) 200 (66 ) (48 ) 36 57 Net Interest and Dividend Income After Net Provision (Recovery) for Credit Losses 12,532 11,351 10,849 11,515 11,506 23,882 23,135 Noninterest Income: Service Fees 559 462 460 451 354 1,021 769 Insurance Commissions 1 1 1 1 1 2 3 Other Commissions 66 63 63 104 22 129 84 Net Gain on Sales of Loans 26 22 3 18 9 49 30 Net (Loss) Gain on Securities — (69 ) 3 245 (31 ) (69 ) (197 ) Net Gain on Purchased Tax Credits 4 4 12 12 12 7 25 Gain on Sale of Subsidiary — — — 138 — — — Net Gain on Disposal of Premises and Equipment — — — — — — 274 Income from Bank-Owned Life Insurance 148 149 152 147 147 297 295 Net Gain on Bank-Owned Life Insurance Claims — — — — — — 915 Other Income 127 155 961 117 174 282 406 Total Noninterest Income 931 787 1,655 1,233 688 1,718 2,604 Noninterest Expense: Salaries and Employee Benefits 5,088 6,036 5,258 4,561 4,425 11,124 9,001 Occupancy 616 750 652 755 940 1,366 1,689 Equipment 372 330 313 280 298 702 562 Data Processing 761 797 832 772 1,011 1,558 1,703 Federal Deposit Insurance Corporation Assessment 203 176 172 177 161 379 290 Pennsylvania Shares Tax 143 257 301 265 297 400 595 Contracted Services 382 310 522 431 390 692 671 Legal and Professional Fees 117 262 268 297 208 378 420 Advertising 124 119 137 141 78 242 206 Other Real Estate Owned 1 — 34 2 37 2 14 Amortization of Intangible Assets — — 88 264 264 — 605 Other Expense 941 765 876 837 875 1,706 1,656 Total Noninterest Expense 8,748 9,802 9,453 8,782 8,984 18,549 17,412 Income Before Income Tax Expense 4,715 2,336 3,051 3,966 3,210 7,051 8,327 Income Tax Expense 766 427 522 747 560 1,193 1,480 Net Income $ 3,949 $ 1,909 $ 2,529 $ 3,219 $ 2,650 $ 5,858 $ 6,847 Expand Three Months Ended Six Months Ended Per Common Share Data 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 Dividends Per Common Share $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.25 $ 0.50 $ 0.50 Earnings Per Common Share - Basic 0.79 0.37 0.49 0.63 0.52 1.15 1.33 Earnings Per Common Share - Diluted 0.74 0.35 0.46 0.60 0.51 1.09 1.33 Weighted Average Common Shares Outstanding - Basic 5,022,813 5,125,577 5,126,782 5,137,586 5,142,139 5,073,911 5,136,021 Expand 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 Common Shares Outstanding 4,972,300 5,099,069 5,132,654 5,129,921 5,141,911 Book Value Per Common Share $ 29.84 $ 29.08 $ 28.71 $ 29.07 $ 27.79 Tangible Book Value per Common Share (1) 27.88 27.17 26.82 27.16 25.83 Stockholders' Equity to Assets 9.8 % 10.0 % 9.9 % 9.5 % 9.2 % Tangible Common Equity to Tangible Assets (1) 9.2 9.4 9.4 9.0 8.6 Expand Three Months Ended Six Months Ended Selected Financial Ratios (2) 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 Return on Average Assets 1.06 % 0.53 % 0.65 % 0.84 % 0.71 % 0.80 % 0.93 % Return on Average Equity 10.76 5.24 6.80 8.80 7.58 8.01 9.80 Average Interest-Earning Assets to Average Interest-Bearing Liabilities 135.33 134.70 133.33 133.26 135.69 135.02 136.36 Average Equity to Average Assets 9.88 10.07 9.63 9.54 9.36 9.97 9.54 Net Interest Rate Spread 2.91 2.61 2.41 2.36 2.44 2.76 2.55 Net Interest Rate Spread (FTE) (1) 2.93 2.63 2.42 2.38 2.46 2.78 2.56 Net Interest Margin 3.54 3.27 3.12 3.11 3.18 3.40 3.27 Net Interest Margin (FTE) (1) 3.55 3.28 3.13 3.12 3.19 3.42 3.28 Net Charge-Offs (Recoveries) to Average Loans (0.01 ) 0.02 0.06 0.03 0.02 — 0.01 Efficiency Ratio 64.94 81.02 71.68 69.11 73.89 72.55 67.84 Expand Asset Quality Ratios 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 Allowance for Credit Losses to Total Loans 0.88 % 0.90 % 0.90 % 0.89 % 0.88 % Allowance for Credit Losses to Nonperforming Loans (3) 550.20 414.48 548.07 463.07 513.03 Delinquent and Nonaccrual Loans to Total Loans (4) 0.49 0.54 0.72 0.98 0.53 Nonperforming Loans to Total Loans (3) 0.16 0.22 0.16 0.19 0.17 Nonperforming Assets to Total Assets (5) 0.13 0.16 0.12 0.14 0.13 Expand Capital Ratios (6) 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 Common Equity Tier 1 Capital (to Risk Weighted Assets) 15.28 % 14.94 % 14.78 % 14.79 % 14.62 % Tier 1 Capital (to Risk Weighted Assets) 15.28 14.94 14.78 14.79 14.62 Total Capital (to Risk Weighted Assets) 16.29 15.95 15.79 15.76 15.61 Tier 1 Leverage (to Adjusted Total Assets) 10.49 10.36 9.98 9.96 9.98 Expand (1) Refer to Explanation of Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure. (2) Interim period ratios are calculated on an annualized basis. (3) Nonperforming loans consist of all nonaccrual loans and accruing loans that are 90 days or more past due. (4) Delinquent loans consist of accruing loans that are 30 days or more past due. (5) Nonperforming assets consist of nonperforming loans and other real estate owned. (6) Capital ratios are for Community Bank only. Expand AVERAGE BALANCES AND YIELDS Three Months Ended June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 (Dollars in thousands) (Unaudited) Assets: Interest-Earning Assets: Loans, Net (2) $ 1,098,698 $ 15,549 5.68 % $ 1,075,083 $ 14,584 5.50 % $ 1,066,304 $ 14,975 5.59 % $ 1,063,946 $ 14,987 5.60 % $ 1,076,455 $ 14,711 5.50 % Debt Securities Taxable 284,499 2,860 4.02 278,362 2,777 3.99 284,002 3,096 4.36 288,208 3,289 4.56 266,021 2,844 4.28 Equity Securities 1,000 9 3.60 2,674 28 4.19 2,693 27 4.01 2,693 28 4.16 2,693 27 4.01 Interest-Earning Deposits at Banks 33,564 331 3.94 45,056 459 4.07 114,245 1,338 4.68 111,131 1,448 5.21 101,277 1,313 5.19 Other Interest-Earning Assets 3,767 68 7.24 3,196 55 6.98 3,070 40 5.18 3,108 63 8.06 3,154 85 10.84 Total Interest-Earning Assets 1,421,528 18,817 5.31 1,404,371 17,903 5.17 1,470,314 19,476 5.27 1,469,086 19,815 5.37 1,449,600 18,980 5.27 Noninterest-Earning Assets 67,513 63,324 65,786 57,602 53,564 Total Assets $ 1,489,041 $ 1,467,695 $ 1,536,100 $ 1,526,688 $ 1,503,164 Liabilities and Stockholders' Equity: Interest-Bearing Liabilities: Interest-Bearing Demand Accounts $ 334,752 $ 1,677 2.01 % $ 317,799 $ 1,526 1.95 % $ 328,129 $ 1,838 2.23 % $ 316,301 $ 1,923 2.42 % $ 325,069 $ 1,858 2.30 % Money Market Accounts 238,195 1,747 2.94 230,634 1,726 3.04 227,606 1,821 3.18 217,148 1,726 3.16 214,690 1,646 3.08 Savings Accounts 174,055 42 0.10 172,322 41 0.10 170,612 45 0.10 175,753 46 0.10 184,944 52 0.11 Time Deposits 259,506 2,255 3.49 285,093 2,818 4.01 341,686 3,788 4.41 358,498 4,197 4.66 308,956 3,509 4.57 Total Interest-Bearing Deposits 1,006,508 5,721 2.28 1,005,848 6,111 2.46 1,068,033 7,492 2.79 1,067,700 7,892 2.94 1,033,659 7,065 2.75 Short-Term Borrowings 9,143 108 4.74 1,985 23 4.70 — — — — — — 2 — — Other Borrowings 34,733 391 4.52 34,723 402 4.70 34,713 407 4.66 34,702 407 4.67 34,692 404 4.68 Total Interest-Bearing Liabilities 1,050,384 6,220 2.38 1,042,556 6,536 2.54 1,102,746 7,899 2.85 1,102,402 8,299 2.99 1,068,353 7,469 2.81 Noninterest-Bearing Demand Deposits 270,729 265,522 267,598 263,650 272,280 Total Funding and Cost of Funds 1,321,113 1.89 1,308,078 2.03 1,370,344 2.29 1,366,052 2.42 1,340,633 2.24 Other Liabilities 20,789 11,854 17,883 15,043 21,867 Total Liabilities 1,341,902 1,319,932 1,388,227 1,381,095 1,362,500 Stockholders' Equity 147,139 147,763 147,873 145,593 140,664 Total Liabilities and Stockholders' Equity $ 1,489,041 $ 1,467,695 $ 1,536,100 $ 1,526,688 $ 1,503,164 Net Interest Income (FTE) (Non-GAAP) (3) $ 12,597 $ 11,367 $ 11,577 $ 11,516 $ 11,511 Net Interest-Earning Assets (4) 371,144 361,815 367,568 366,684 381,247 Net Interest Rate Spread (FTE) (Non-GAAP) (3) (5) 2.93 % 2.63 % 2.42 % 2.38 % 2.46 % Net Interest Margin (FTE) (Non-GAAP) (3)(6) 3.55 3.28 3.13 3.12 3.19 Expand (1) Annualized based on three months ended results. (2) Net of the allowance for credit losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable. (3) Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure. (4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (5) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (6) Net interest margin represents annualized net interest income divided by average total interest-earning assets. Expand AVERAGE BALANCES AND YIELDS Six Months Ended June 30, 2024 Assets: Interest-Earning Assets: Loans, Net (2) $ 1,086,955 $ 30,132 5.59 % $ 1,082,172 $ 29,586 5.50 % Debt Securities Taxable 281,447 5,637 4.01 250,912 5,148 4.10 Marketable Equity Securities 1,832 37 4.04 2,693 54 4.01 Interest-Earning Deposits at Banks 39,278 789 4.02 80,082 2,045 5.11 Other Interest-Earning Assets 3,484 123 7.12 3,195 171 10.76 Total Interest-Earning Assets 1,412,996 36,718 5.24 1,419,054 37,004 5.24 Noninterest-Earning Assets 65,758 54,141 Total Assets $ 1,478,754 $ 1,473,195 Liabilities and Stockholders' Equity: Interest-Bearing Liabilities: Interest-Bearing Demand Accounts $ 326,322 $ 3,203 1.98 % $ 329,974 $ 3,653 2.23 % Savings Accounts 173,193 83 0.10 188,194 111 0.12 Money Market Accounts 234,436 3,473 2.99 209,279 3,159 3.04 Time Deposits 272,229 5,074 3.76 278,538 6,133 4.43 Total Interest-Bearing Deposits 1,006,180 11,833 2.37 1,005,985 13,056 2.61 Short-Term Borrowings 5,584 131 4.73 1 — — Other Borrowings 34,728 792 4.60 34,687 808 4.68 Total Interest-Bearing Liabilities 1,046,492 12,756 2.46 1,040,673 13,864 2.68 Noninterest-Bearing Demand Deposits 268,140 275,485 Total Funding and Cost of Funds 1,314,632 1.96 1,316,158 2.12 Other Liabilities 16,673 16,559 Total Liabilities 1,331,305 1,332,717 Stockholders' Equity 147,449 140,478 Total Liabilities and Stockholders' Equity $ 1,478,754 $ 1,473,195 Net Interest Income (FTE) (Non-GAAP) (3) 23,962 23,140 Net Interest-Earning Assets (4) 366,504 378,381 Net Interest Rate Spread (FTE) (Non-GAAP) (3)(5) 2.78 % 2.56 % Net Interest Margin (FTE) (Non-GAAP) (3)(6) 3.42 3.28 Expand (1) Annualized based on six months ended results. (2) Net of the allowance for credit losses and includes nonaccrual loans with a zero yield and Loans Held for Sale if applicable. (3) Refer to Explanation and Use of Non-GAAP Financial Measures in this Press Release for the calculation of the measure and reconciliation to the most comparable GAAP measure. (4) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities. (5) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities. (6) Net interest margin represents annualized net interest income divided by average total interest-earning assets. Expand Explanation of Use of Non-GAAP Financial Measures In addition to financial measures presented in accordance with generally accepted accounting principles ('GAAP'), we use, and this Press Release contains or references, certain Non-GAAP financial measures. We believe these Non-GAAP financial measures provide useful information in understanding our underlying results of operations or financial position and our business and performance trends as they facilitate comparisons with the performance of other companies in the financial services industry. Non-GAAP adjusted items impacting the Company's financial performance are identified to assist investors in providing a complete understanding of factors and trends affecting the Company's business and in analyzing the Company's operating results on the same basis as that applied by management. Although we believe that these Non-GAAP financial measures enhance the understanding of our business and performance, they should not be considered an alternative to GAAP or considered to be more important than financial results determined in accordance with GAAP, nor are they necessarily comparable with similar Non-GAAP measures which may be presented by other companies. Where Non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found herein. 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 (Dollars in thousands, except share and per share data) (Unaudited) Total Assets (GAAP) $ 1,517,984 $ 1,483,456 $ 1,481,564 $ 1,561,741 $ 1,560,259 Goodwill and Intangible Assets, Net (9,732 ) (9,732 ) (9,732 ) (9,820 ) (10,085 ) Tangible Assets (Non-GAAP) (Numerator) $ 1,508,252 $ 1,473,724 $ 1,471,832 $ 1,551,921 $ 1,550,174 Stockholders' Equity (GAAP) $ 148,362 $ 148,289 $ 147,378 $ 149,140 $ 142,882 Goodwill and Intangible Assets, Net (9,732 ) (9,732 ) (9,732 ) (9,820 ) (10,085 ) Tangible Common Equity or Tangible Book Value (Non-GAAP) (Denominator) $ 138,630 $ 138,557 $ 137,646 $ 139,320 $ 132,797 Stockholders' Equity to Assets (GAAP) 9.8 % 10.0 % 9.9 % 9.5 % 9.2 % Tangible Common Equity to Tangible Assets (Non-GAAP) 9.2 % 9.4 % 9.4 % 9.0 % 8.6 % Common Shares Outstanding (Denominator) 4,972,300 5,099,069 5,132,654 5,129,921 5,141,911 Book Value per Common Share (GAAP) $ 29.84 $ 29.08 $ 28.71 $ 29.07 $ 27.79 Tangible Book Value per Common Share (Non-GAAP) $ 27.88 $ 27.17 $ 26.82 $ 27.16 $ 25.83 Expand Three Months Ended Six Months Ended 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 (Dollars in thousands) (Unaudited) Net Income (GAAP) $ 3,949 $ 1,909 $ 2,529 $ 3,219 $ 2,650 $ 5,858 $ 6,847 Amortization of Intangible Assets, Net — — 88 264 264 — 605 Adjusted Net Income (Non-GAAP) (Numerator) $ 3,949 $ 1,909 $ 2,617 $ 3,483 $ 2,914 $ 5,858 $ 7,452 Annualization Factor 4.01 4.06 3.98 3.98 4.02 2.02 2.01 Average Stockholders' Equity (GAAP) $ 147,139 $ 147,763 $ 147,873 $ 145,593 $ 140,664 $ 147,449 $ 140,478 Average Goodwill and Intangible Assets, Net (9,732 ) (9,732 ) (9,758 ) (9,987 ) (10,242 ) (9,732 ) (10,398 ) Average Tangible Common Equity (Non-GAAP) (Denominator) $ 137,407 $ 138,031 $ 138,115 $ 135,606 $ 130,422 $ 137,717 $ 130,080 Return on Average Equity (GAAP) 10.76 % 5.24 % 6.80 % 8.80 % 7.58 % 8.01 % 9.80 % Return on Average Tangible Common Equity (Non-GAAP) 11.53 % 5.61 % 7.54 % 10.22 % 8.99 % 8.58 % 11.52 % Expand Three Months Ended Six Months Ended 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 (Dollars in thousands) (Unaudited) Interest Income (GAAP) $ 18,760 $ 17,847 $ 19,431 $ 19,773 $ 18,939 $ 36,606 $ 36,926 Adjustment to FTE Basis 57 56 45 42 41 112 78 Interest Income (FTE) (Non-GAAP) 18,817 17,903 19,476 19,815 18,980 36,718 37,004 Interest Expense (GAAP) 6,220 6,536 7,899 8,299 7,469 12,756 13,864 Net Interest Income (FTE) (Non-GAAP) $ 12,597 $ 11,367 $ 11,577 $ 11,516 $ 11,511 $ 23,962 $ 23,140 Net Interest Rate Spread (GAAP) 2.91 % 2.61 % 2.41 % 2.36 % 2.44 % 2.76 % 2.55 % Adjustment to FTE Basis 0.02 0.02 0.01 0.02 0.02 0.02 0.01 Net Interest Rate Spread (FTE) (Non-GAAP) 2.93 % 2.63 % 2.42 % 2.38 % 2.46 % 2.78 % 2.56 % Net Interest Margin (GAAP) 3.54 % 3.27 % 3.12 % 3.11 % 3.18 % 3.40 % 3.27 % Adjustment to FTE Basis 0.01 0.01 0.01 0.01 0.01 0.02 0.01 Net Interest Margin (FTE) (Non-GAAP) 3.55 % 3.28 % 3.13 % 3.12 % 3.19 % 3.42 % 3.28 % Expand Three Months Ended Six Months Ended 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 (Dollars in thousands) (Unaudited) Income Before Income Tax Expense (GAAP) $ 4,715 $ 2,336 $ 3,051 $ 3,966 $ 3,210 $ 7,051 $ 8,327 Net Provision (Recovery) for Credit Losses 8 (40 ) 683 (41 ) (36 ) (32 ) (73 ) PPNR (Non-GAAP) 4,723 2,296 3,734 3,925 3,174 7,019 8,254 Adjustments Net Loss (Gain) on Securities — 69 (3 ) (245 ) 31 69 197 Gain on Sale of Subsidiary — — — (138 ) — — — Net Gain on Disposal of Premises and Equipment — — — — — — (274 ) Earn-out Payment Related to the Sale of EU — (49 ) (708 ) — — (49 ) — Net Gain on Bank-Owned Life Insurance Claims — — — — — — (915 ) Reduction in Force Expenses — 1,003 — — — Adjusted PPNR (Non-GAAP) (Numerator) $ 4,723 $ 3,319 $ 3,023 $ 3,542 $ 3,205 $ 7,039 $ 7,262 Annualization Factor 4.01 4.06 3.98 3.98 4.02 2.02 2.01 Average Assets (Denominator) $ 1,489,041 $ 1,467,695 $ 1,536,100 $ 1,526,688 $ 1,503,164 $ 1,478,754 $ 1,473,195 Adjusted PPNR Return on Average Assets (Non-GAAP) 1.27 % 0.92 % 0.78 % 0.92 % 0.86 % 0.96 % 0.99 % Expand Three Months Ended Six Months Ended 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 (Dollars in thousands, except share and per share data) (Unaudited) Net Income (GAAP) $ 3,949 $ 1,909 $ 2,529 $ 3,219 $ 2,650 $ 5,858 $ 6,847 Adjustments Net Loss (Gain) on Securities — 69 (3 ) (245 ) 31 69 197 Gain on Sale of Subsidiary — — — (138 ) — — — Net Gain on Disposal of Premises and Equipment — — — — — — (274 ) Earn-out Payment Related to the Sale of EU — (49 ) (708 ) — — (49 ) — Net Gain on Bank-Owned Life Insurance Claims — — — — — — (915 ) Reduction in Force Expenses — 1,003 — — — 1,003 — Tax effect — (215 ) 149 90 (7 ) (215 ) 16 Adjusted Net Income (Non-GAAP) $ 3,949 $ 2,717 $ 1,967 $ 2,926 $ 2,674 $ 6,666 $ 5,871 Weighted-Average Diluted Common Shares and Common Stock Equivalents Outstanding 5,332,026 5,471,006 5,544,829 5,346,750 5,152,657 5,387,924 5,151,188 Earnings per Common Share - Diluted (GAAP) $ 0.74 $ 0.35 $ 0.46 $ 0.60 $ 0.51 $ 1.09 $ 1.33 Adjusted Earnings per Common Share - Diluted (Non-GAAP) $ 0.74 $ 0.50 $ 0.35 $ 0.55 $ 0.52 $ 1.24 $ 1.14 Net Income (GAAP) (Numerator) $ 3,949 $ 1,909 $ 2,529 $ 3,219 $ 2,650 $ 5,858 $ 6,847 Annualization Factor 4.01 4.06 3.98 3.98 4.02 2.02 2.01 Average Assets (Denominator) 1,489,041 1,467,695 1,536,100 1,526,688 1,503,164 1,478,754 1,473,195 Return on Average Assets (GAAP) 1.06 % 0.53 % 0.65 % 0.84 % 0.71 % 0.80 % 0.93 % Adjusted Net Income (Non-GAAP) (Numerator) $ 3,949 $ 2,717 $ 1,967 $ 2,926 $ 2,674 $ 6,666 $ 5,871 Annualization Factor 4.01 4.06 3.98 3.98 4.02 2.02 2.01 Average Assets (Denominator) 1,489,041 1,467,695 1,536,100 1,526,688 1,503,164 1,478,754 1,473,195 Adjusted Return on Average Assets (Non-GAAP) 1.06 % 0.75 % 0.51 % 0.76 % 0.72 % 0.91 % 0.80 % Expand Three Months Ended Six Months Ended 6/30/25 3/31/25 12/31/24 9/30/24 6/30/24 6/30/25 6/30/24 (Dollars in thousands) (Unaudited) Net Income (GAAP) (Numerator) $ 3,949 $ 1,909 $ 2,529 $ 3,219 $ 2,650 $ 5,858 $ 6,847 Annualization Factor 4.01 4.06 3.98 3.98 4.02 2.02 2.01 Average Equity (GAAP) (Denominator) 147,139 147,763 147,873 145,593 140,664 147,449 140,478 Return on Average Equity (GAAP) 10.76 % 5.24 % 6.80 % 8.80 % 7.58 % 8.01 % 9.80 % Adjusted Net Income (Non-GAAP) (Numerator) $ 3,949 $ 2,717 $ 1,967 $ 2,926 $ 2,674 $ 6,666 $ 5,871 Annualization Factor 4.01 4.06 3.98 3.98 4.02 2.02 2.01 Average Equity (GAAP) (Denominator) 147,139 147,763 147,873 145,593 140,664 147,449 140,478 Adjusted Return on Average Equity (Non-GAAP) 10.76 % 7.46 % 5.29 % 8.00 % 7.65 % 9.12 % 8.40 % Expand
