Core Viewpoint - Plato Gold Corp. has announced the results of its drilling program at the Lolita Project in Santa Cruz, Argentina, revealing non-economic gold and silver values but significant anomalous pathfinder elements [1][4][11]. Drilling Program Summary - Drilling commenced in May and concluded by mid-June, totaling 1,585 meters across 12 holes, with lengths ranging from 74 to 242 meters [2]. - The program was completed within the projected budget [2]. Sample Results - Results from 299 samples, including quality control samples, have been reviewed and passed by the Qualified Person [3]. - Maximum values recorded in drill core include 15 parts per billion of gold and 5.8 parts per million of silver, with arsenic at 1,059 ppm, antimony at 230 ppm, mercury at 15 ppm, and sulfur at 1.7 percent [4]. Geological Findings - Drill holes at Panza and Corazon intersected silica veinlets and hydrothermal breccias within a specific stratigraphic unit of competent, felsic volcanic rock, possibly an ignimbrite [4]. - Anomalous mineralization appears to be stratigraphically controlled rather than influenced by steep structures, with significant volumes of alteration and mineralization lacking precious metals [6][7]. Anomalous Element Values - Selected anomalous pathfinder element values include: - Panza LO-25-003: 25.35 m interval with 395 ppm arsenic and 0.69% sulfur [8] - Panza LO-25-009: 37.90 m interval with 308 ppm arsenic and 0.66% sulfur [8] - Corazon LO-25-011: 37.30 m interval with 166 ppm arsenic and 0.42% sulfur [8] - Corazon LO-25-012: 45.00 m interval with 237 ppm arsenic and 0.64% sulfur [8] Future Considerations - The geological occurrence of these mineralization zones is atypical for the Deseado Massif, and the significance of these findings will be further studied by the company [11].

Core Viewpoint - Plato Gold Corp. has announced the results of its drilling program at the Lolita Project in Santa Cruz, Argentina, revealing non-economic gold and silver values but significant anomalous pathfinder elements. Drilling Program Summary - Drilling commenced in May and was completed by mid-June, totaling 1,585 meters drilled across 12 holes, with lengths ranging from 74 to 242 meters [2] - The program was completed within the projected budget [2] Sample Results - Results from 299 samples, including quality control samples, have been reviewed and passed by the Qualified Person [3] - Maximum values recorded in drill core include 15 parts per billion of gold and 5.8 parts per million of silver, with arsenic at 1,059 ppm, antimony at 230 ppm, mercury at 15 ppm, and sulfur at 1.7 percent [4] Geological Findings - Drill holes at Panza and Corazon intersected silica veinlets and hydrothermal breccias within a specific stratigraphic unit of competent, felsic volcanic rock [4] - Anomalous mineralization appears to be stratigraphically controlled rather than by steep structures, with significant volumes of alteration and mineralization lacking precious metals [6][7] Anomalous Element Values - Selected anomalous pathfinder element values include: - Panza LO-25-003: 25.35m interval with 395 ppm arsenic and 0.69% sulfur [9] - Panza LO-25-009: 37.90m interval with 308 ppm arsenic and 0.66% sulfur [9] - Corazon LO-25-011: 37.30m interval with 166 ppm arsenic and 0.42% sulfur [9] - Corazon LO-25-012: 45.00m interval with 237 ppm arsenic and 0.64% sulfur [9] Future Considerations - The geological occurrence of mineralization zones with anomalous pathfinder elements is atypical for the Deseado Massif, and the significance of these findings will be further studied by the company [12]

Financial Data and Key Metrics Changes - The company reported a revenue of $3,600,000,000, an increase of 8.3% compared to the previous year [12][9] - Underlying EBITDA reached $95,200,000, up $2,800,000 or about 3% year-on-year [13][12] - Net profit after tax was $31,200,000, with a statutory result of $20,600,000 [9][10] - Free operating cash flow was negative at $11,000,000, significantly impacted by receivables from a group of pharmacies [19][20] Business Line Data and Key Metrics Changes - Revenue from Australia and New Zealand grew to $3,500,000,000, an increase of 8% [21] - Gross margin in Australia and New Zealand was $277,900,000, up 5% [21] - The Asian market saw revenue increase from $84,200,000 to $101,000,000, a growth of 20% [23] Market Data and Key Metrics Changes - Strong growth was noted in Thailand's aesthetics division, contributing to the overall revenue increase in Asia [24] - The imaging business performed solidly despite some market headwinds [24] - Modest growth was observed in the Philippines due to declining contracts [24] Company Strategy and Development Direction - The company aims to continue its growth strategy in Asia following the merger with Paragon Care Group [2][4] - Focus on operational efficiencies and integration of businesses onto a single platform [26][29] - Emphasis on organic growth through investments in sales teams and new business opportunities in dental, robotics, and aesthetics [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $12,000,000 in synergies for FY '26, building on the $5,000,000 achieved in FY '25 [26][30] - The competitive landscape in retail pharmacy is evolving, with expectations for continued growth despite challenges [34][35] - Future profitability is expected to improve as synergies are realized and new opportunities are explored [30] Other Important Information - The company completed a refinancing with Scott Pak, increasing local borrowing capacity and reducing interest costs [19][20] - The acquisition of AHP Dental is expected to provide a step into the dental market, with an anticipated EBITDA contribution of around $1,000,000 for FY '26 [46][45] Q&A Session Summary Question: Outlook on revenue and profit for next year - Management indicated that revenue growth would be positive but not necessarily at the same rate as FY '25, suggesting single mid-digit growth rates [33] Question: Competitive landscape in retail pharmacy - Management noted the difficulty in predicting the competitive landscape due to market evolution, particularly following significant mergers [34] Question: Clarification on integration costs in EBITDA - Integration costs were clarified to be excluded from the underlying EBITDA figure [36][37] Question: M&A pipeline and net debt to EBITDA ratio - Management expressed willingness to increase net debt to pursue opportunities, particularly in Asia [38] Question: Details on synergies and cost savings from refinancing - Management confirmed that the $2,000,000 cost saving from refinancing is separate from the $12,000,000 synergy target for FY '26 [43][44] Question: Profitability of recent acquisitions - The AHP Dental acquisition is expected to contribute modestly to EBITDA but offers growth potential in the dental market [46] Question: Focus on growth opportunities in Asia - Management confirmed ongoing efforts to explore acquisitions in Asia that align with current operations [49] Question: Future financing arrangements with Scott Pak - Management indicated a commitment to maintaining the lowest possible cost of funds and flexibility in financing arrangements [57][58]

Financial Data and Key Metrics Changes - The company reported a revenue of $3,600,000,000, reflecting an 8.3% increase compared to the previous year [12][8] - Underlying EBITDA was $95,200,000, up $2,800,000 or about 3% year-on-year, driven by a $25,000,000 increase in gross margin dollars [12][13] - Net profit after tax was $31,200,000, with statutory results showing a net profit of $20,600,000 [8][12] Business Line Data and Key Metrics Changes - Revenue from Australia and New Zealand grew to $3,500,000,000, an increase of 8%, with gross margin rising to $277,900,000, up 5% [21] - The Asian market saw revenue increase from $84,200,000 to $101,000,000, a growth of 20%, with gross margin up by 30% to $46,100,000 [23][24] - Clinical manufacturing signed its first contract manufacturing agreement, indicating growth potential in that segment [22] Market Data and Key Metrics Changes - The Australian pharmacy market experienced solid growth, while hospital pharmacy remained flat [21] - The Asian market, particularly Thailand, showed exceptional growth in aesthetics, contributing significantly to revenue increases [24] - Challenges were noted in Korea due to a doctors' strike, and modest growth was observed in the Philippines due to declining contracts [25] Company Strategy and Development Direction - The company aims to continue its three-two-one strategy, focusing on integrating its businesses and expanding in Asia [27] - There is a strong emphasis on organic growth through investments in sales teams and new business opportunities in dental, robotics, and aesthetics [27][28] - The company is committed to operational efficiencies and simplifying its business structure while exploring merger and acquisition opportunities, particularly in Asia [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving $12,000,000 in synergies for FY '26, building on the $5,000,000 achieved in FY '25 [14][26] - The outlook for revenue and profit growth remains positive, with expectations for improved profitability as synergies are realized [29] - Management highlighted a focus on the competitive landscape in retail pharmacy and the need to adapt to market changes [33] Other Important Information - The company completed a refinancing with Scott Pak, resulting in a $400,000,000 financial covenant-free facility, which is expected to save $2,000,000 in interest annually [18][19] - The company is working towards achieving ISO certifications and GMP accreditation for its facilities [26] Q&A Session Summary Question: Outlook on revenue and profit for next year - Management indicated that revenue growth would be positive but not necessarily at the same rate as FY '25, suggesting single mid-digit growth rates [32] Question: Competitive landscape in retail pharmacy - Management noted that the competitive landscape has evolved, particularly due to recent mergers, and they hope to continue benefiting from trends in the market [33] Question: Clarification on integration costs in EBITDA - Integration costs were clarified to be excluded from the underlying EBITDA, allowing for a clearer view of operational performance [36] Question: M&A pipeline and net debt to EBITDA ratio - Management expressed willingness to increase net debt to pursue opportunities, particularly in Asia, while remaining focused on outcomes [37] Question: Details on recent acquisitions - The AHP Dental acquisition is expected to provide growth opportunities, although it may not contribute significantly to EBITDA initially [46][47] Question: Focus on growth opportunities in Asia - Management confirmed a strong focus on growth opportunities in Asia, with plans to update stakeholders before the AGM [50] Question: Future financing arrangements with Scott Pak - Management confirmed a commitment to maintaining low costs of funds and flexibility in financing arrangements, with a minimum term of two years for the current facility [57]

For personal use only Annual Financial Investor Presentation Results Year Ended 30 June 2025 ParagonCare Limited - ASX PGC Disclaimer This document has been prepared by Paragon Care Limited ACN 064 551 426 (ASX: PGC) (ParagonCare or the Company) (Presentation). The material in this Presentation contains general background information about ParagonCare and its current activities as at the date of this Presentation. The information contained in this Presentation is in summary form only and does not purport to ...

Core Viewpoint - Plato Gold Corp. reported its financial results for the six and three months ended June 30, 2025, showing no income and significant net losses compared to the same periods in 2024 [1]. Financial Summary - For the six months ended June 30, 2025, the company reported no income, a net loss of $1,189,034, and a comprehensive loss of $1,195,228, compared to a net loss of $95,823 and a comprehensive loss of $95,823 for the same period in 2024 [1]. - For the three months ended June 30, 2025, the company again reported no income, a net loss of $1,159,065, and a comprehensive loss of $1,165,259, compared to a net loss of $43,159 and a comprehensive loss of $43,159 for the same period in 2024 [1]. - The loss per common share for both the six and three months ended June 30, 2025, was $0.01, while it was $0.00 for the same periods in 2024 [1]. - The weighted average number of common shares outstanding for the six months ended June 30, 2025, was 230,665,717, compared to 228,649,233 for the same period in 2024 [1]. Company Overview - Plato Gold Corp. is a Canadian exploration company listed on the TSX Venture Exchange, OTC Markets, and Frankfurt Exchange, with projects located in Timmins, Ontario, and Santa Cruz, Argentina [3]. - The Timmins project includes four properties: Guibord, Harker, Holloway, and Marriott, focusing on gold exploration [3]. - In Argentina, the company holds a 95% interest in Winnipeg Minerals S.A., which has mineral rights totaling 9,672 hectares with potential for gold and silver [4]. - The Good Hope Niobium Project covers approximately 6,035 hectares near Marathon, Ontario, targeting niobium [4]. - The Pic River Platinum Group Metals Project consists of 2,352 hectares near Marathon, with claims contiguous to Generation Mining's Marathon PGM project [5].

PART I FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited consolidated financial statements, including condition, income, comprehensive income, equity, cash flows, and detailed notes [Consolidated Statements of Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Condition) Total assets increased to $7.20 billion from $7.01 billion, driven by growth in net loans and noninterest-bearing demand deposits Consolidated Statements of Condition (Dollars in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--------------------------------- | :-------------- | :---------------- | :----- | | Total Assets | $7,200,673 | $7,011,238 | +$189,435 | | Net Loans | $5,737,267 | $5,439,334 | +$297,933 | | Total Deposits | $6,363,123 | $6,129,022 | +$234,101 | | Noninterest-bearing demand deposits | $1,237,864 | $1,112,734 | +$125,130 | | Total Liabilities | $6,570,896 | $6,405,389 | +$165,507 | | Total Shareholders' Equity | $629,777 | $605,849 | +$23,928 | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net interest income significantly increased, while net income saw a slight increase for the three-month period and a decrease for the six-month period, impacted by higher operating expenses and provision for credit losses Consolidated Statements of Income (Dollars in thousands, except per share data) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :--------------------------------- | :--------------------------- | :--------------------------- | :----------- | :--------------------------- | :--------------------------- | :----------- | | Total Interest Income | $89,651 | $79,238 | +$10,413 | $175,996 | $158,432 | +$17,564 | | Total Interest Expense | $41,361 | $44,196 | -$2,835 | $82,201 | $89,015 | -$6,814 | | Net Interest Income | $48,290 | $35,042 | +$13,248 | $93,795 | $69,417 | +$24,378 | | Provision for Credit Losses | $6,586 | $3,911 | +$2,675 | $11,057 | $4,538 | +$6,519 | | Total Other Income | $21,451 | $21,555 | -$104 | $40,305 | $40,256 | +$49 | | Total Operating Expenses | $51,893 | $43,126 | +$8,767 | $101,333 | $83,167 | +$18,166 | | Net Income | $7,941 | $7,530 | +$411 | $15,536 | $16,161 | -$625 | | Diluted EPS | $0.45 | $0.42 | +$0.03 | $0.87 | $0.91 | -$0.04 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income increased significantly for both the three and six months ended June 30, 2025, primarily due to unrealized gains on available-for-sale securities, net of tax, which offset net income Consolidated Statements of Comprehensive Income (Dollars in thousands) | Metric | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | Change (YoY) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :----------------------------------------- | :--------------------------- | :--------------------------- | :----------- | :--------------------------- | :--------------------------- | :----------- | | Net Income | $7,941 | $7,530 | +$411 | $15,536 | $16,161 | -$625 | | Unrealized gains/(losses) on AFS securities, net of tax | $3,318 | -$419 | +$3,737 | $13,941 | -$5,379 | +$19,320 | | Unrealized gains/(losses) on cash flow hedges, net of tax | -$1,182 | -$163 | -$1,019 | -$3,111 | +$1,915 | -$5,026 | | Total Other Comprehensive Income/(Loss) | $2,136 | -$582 | +$2,718 | $10,830 | -$3,464 | +$14,294 | | Total Comprehensive Income | $10,077 | $6,948 | +$3,129 | $26,366 | $12,697 | +$13,669 | [Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity increased for both the three and six months ended June 30, 2025, primarily driven by net income and other comprehensive income, partially offset by share repurchases and cash dividends Consolidated Statements of Changes in Shareholders' Equity (Dollars in thousands) | Metric | Balance at April 1, 2025 | Balance at June 30, 2025 | Change | Balance at January 1, 2025 | Balance at June 30, 2025 | Change | | :--------------------------------- | :----------------------- | :----------------------- | :----- | :----------------------- | :----------------------- | :----- | | Total Shareholders' Equity (3M) | $621,873 | $629,777 | +$7,904 | N/A | N/A | N/A | | Total Shareholders' Equity (6M) | N/A | N/A | N/A | $605,849 | $629,777 | +$23,928 | | Net Income (3M) | N/A | $7,941 | N/A | N/A | N/A | N/A | | Net Income (6M) | N/A | N/A | N/A | N/A | $15,536 | N/A | | Other Comprehensive Income (3M) | N/A | $2,136 | N/A | N/A | N/A | N/A | | Other Comprehensive Income (6M) | N/A | N/A | N/A | N/A | $10,830 | N/A | | Share Repurchase (3M) | N/A | -$2,778 | N/A | N/A | N/A | N/A | | Share Repurchase (6M) | N/A | N/A | N/A | N/A | -$2,778 | N/A | | Cash Dividends Declared (3M) | N/A | -$887 | N/A | N/A | N/A | N/A | | Cash Dividends Declared (6M) | N/A | N/A | N/A | N/A | -$1,767 | N/A | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities decreased, while investing activities shifted from providing to using cash, and financing activities significantly increased cash provided, primarily due to a net increase in deposits and repayment of subordinated debt Consolidated Statements of Cash Flows (Dollars in thousands) | Metric | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | Change (YoY) | | :----------------------------------------- | :--------------------------- | :--------------------------- | :----------- | | Net Cash Provided by Operating Activities | $8,070 | $19,961 | -$11,891 | | Net Cash (Used in)/Provided by Investing Activities | -$277,652 | $141,013 | -$418,665 | | Net Cash Provided by/(Used in) Financing Activities | $193,817 | -$32,916 | +$226,733 | | Net (Decrease)/Increase in Cash and Cash Equivalents | -$75,765 | $128,058 | -$203,823 | | Cash and Cash Equivalents at End of Period | $315,602 | $315,729 | -$127 | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section provides detailed disclosures and explanations for the consolidated financial statements, covering significant accounting policies, specific financial instrument details, segment reporting, fair value measurements, revenue recognition, operating expenses, and recent accounting pronouncements [1. Summary of Significant Accounting Policies](index=11&type=section&id=1.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section outlines the key accounting principles and policies used in preparing the unaudited consolidated financial statements, including principles of consolidation, basis of presentation, segment information, and specific accounting treatments for various

Core Insights - Peapack-Gladstone (PGC) reported a revenue of $69.74 million for the quarter ended June 2025, reflecting a year-over-year increase of 23.2% [1] - The earnings per share (EPS) for the quarter was $0.45, up from $0.42 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $69.43 million by 0.46%, while the EPS fell short of the consensus estimate of $0.61 by 26.23% [1] Financial Performance Metrics - The net interest margin was reported at 2.8%, matching the average estimate from two analysts [4] - The efficiency ratio stood at 74.4%, which is higher than the average estimate of 72.5% from two analysts [4] - Total non-interest income was $21.45 million, surpassing the average estimate of $20 million from two analysts [4] Stock Performance - Peapack-Gladstone shares have returned +12.1% over the past month, outperforming the Zacks S&P 500 composite's +5.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1: Earnings Performance - Peapack-Gladstone (PGC) reported quarterly earnings of $0.45 per share, missing the Zacks Consensus Estimate of $0.61 per share, but showing an increase from $0.42 per share a year ago, resulting in an earnings surprise of -26.23% [1] - The company posted revenues of $69.74 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.46%, and compared to year-ago revenues of $56.6 million [2] - Over the last four quarters, Peapack-Gladstone has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - Peapack-Gladstone shares have lost about 7.1% since the beginning of the year, while the S&P 500 has gained 7.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.70 on revenues of $71.97 million, and for the current fiscal year, it is $2.50 on revenues of $280.63 million [7] Group 3: Industry Context - The Zacks Industry Rank for Banks - Northeast, to which Peapack-Gladstone belongs, is currently in the top 30% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

[Financial Performance Highlights](index=1&type=section&id=Financial%20Performance%20Highlights) [Q2 2025 Key Results](index=1&type=section&id=Q2%202025%20Key%20Results) The company reported sequential growth in net income and deposits, alongside an improved net interest margin Q2 2025 vs Q1 2025 Financial Results | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Income | $7.9 million | $7.6 million | | Diluted EPS | $0.45 | $0.43 | Deposit Growth as of June 30, 2025 | Metric | Value | Note | | :--- | :--- | :--- | | Total Deposits | $6.4 billion | +12% over last twelve months | | Noninterest-Bearing Deposits | - | +30% over last year; +$53 million in Q2 | | Newly Funded Accounts (Q2) | $282 million | Average weighted cost of 1.88% | Net Interest Income (NII) and Net Interest Margin (NIM) | Period | Net Interest Income | Net Interest Margin | | :--- | :--- | :--- | | Q2 2025 | $48.3 million | 2.77% | | Q1 2025 | $45.5 million | 2.68% | | Q2 2024 | - | 2.25% | [Strategic Initiatives & CEO Remarks](index=1&type=section&id=Strategic%20Initiatives%20%26%20CEO%20Remarks) Strategic expansion into Metro New York drove significant growth, prompting further team additions and a corporate rebranding - The Metro New York expansion has driven significant growth, onboarding over 700 new relationships with more than **$1.3 billion in new core deposit balances** and **$464 million in loan balances**[6](index=6&type=chunk) - The company expanded its footprint by adding **five new production teams** in Long Island during the second quarter[6](index=6&type=chunk) - The company re-branded to **Peapack Private Bank & Trust** to reflect its evolution into a premier boutique private bank in Metro New York[6](index=6&type=chunk) [Detailed Financial Analysis](index=3&type=section&id=Detailed%20Financial%20Analysis) [Income Statement Analysis](index=3&type=section&id=Income%20Statement%20Analysis) Quarterly revenue and net income grew year-over-year, though higher credit loss provisions impacted six-month net income Q2 2025 vs. Q2 2024 Income Statement | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $69.7M | $56.6M | +23% | | Net Interest Income | $48.3M | $35.0M | +38% | | Provision for Credit Losses | $6.6M | $3.9M | +69% | | Net Income | $7.9M | $7.5M | +5% | | Diluted EPS | $0.45 | $0.42 | +7% | Q2 2025 vs. Q1 2025 Income Statement | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $69.7M | $64.4M | +8% | | Net Interest Income | $48.3M | $45.5M | +6% | | Net Income | $7.9M | $7.6M | +4% | | Diluted EPS | $0.45 | $0.43 | +5% | Six Months Ended June 30, 2025 vs. 2024 | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $93.8M | $69.4M | +35% | | Provision for Credit Losses | $11.1M | $4.5M | +144% | | Net Income | $15.6M | $16.2M | -4% | [Business Segment & Key Metrics Analysis](index=4&type=section&id=Business%20Segment%20%26%20Key%20Metrics%20Analysis) The company saw growth in wealth management and commercial loans, though rising expenses and deteriorating asset quality present challenges [Wealth Management](index=4&type=section&id=Wealth%20Management) The Wealth Management division grew its AUM/AUA to $12.3 billion, supported by strong new business inflows Wealth Management Metrics | Metric | As of/For Q2 2025 | As of Dec 31, 2024 | | :--- | :--- | :--- | | AUM/AUA | $12.3 billion | $11.9 billion | | Q2 Fee Income | $15.9 million | - | | Q2 New Business Inflows | $193 million | - | [Loans / Commercial Banking](index=4&type=section&id=Loans%20%2F%20Commercial%20Banking) The loan portfolio expanded to $5.8 billion, driven by C&I lending with attractive new loan spreads - Total loans grew to **$5.8 billion** at June 30, 2025, a **5% increase** from $5.5 billion at December 31, 2024[7](index=7&type=chunk)[20](index=20&type=chunk) - Commercial and industrial (C&I) loans grew to **$2.5 billion**, representing **44% of the total loan portfolio** at June 30, 2025[10](index=10&type=chunk)[20](index=20&type=chunk) - New loans originated in 2025 carried an average spread of **more than 450 basis points** above the company's current cost of funds[21](index=21&type=chunk) [Net Interest Income (NII)/Net Interest Margin (NIM)](index=5&type=section&id=Net%20Interest%20Income%20(NII)%2FNet%20Interest%20Margin%20(NIM)) Net interest margin continued its upward trend, reaching 2.77% due to the successful private banking strategy NII and NIM Trends | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $48.3M | $45.5M | $35.0M | | Net Interest Margin | 2.77% | 2.68% | 2.25% | [Funding / Liquidity / Interest Rate Risk Management](index=5&type=section&id=Funding%20%2F%20Liquidity%20%2F%20Interest%20Rate%20Risk%20Management) Deposit growth enhanced balance sheet liquidity, providing robust coverage for uninsured deposits - Total deposits increased to **$6.4 billion** at June 30, 2025, up $234 million from December 31, 2024[23](index=23&type=chunk) - Total on and off-balance sheet liquidity was **$4.6 billion**, which amounts to **277% of total uninsured/uncollateralized deposits**[24](index=24&type=chunk) [Noninterest Income](index=5&type=section&id=Noninterest%20Income) Noninterest income was boosted by strong Capital Markets activity and a one-time gain from a lease termination Capital Markets Activity (in thousands) | Category | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Gain on sale of SBA loans | $521 | $302 | $449 | | Fee income on swaps | $221 | $— | $— | | **Total Capital Markets** | **$799** | **$455** | **$586** | - Other noninterest income of $4.7 million in Q2 2025 included a gain of **$875,000 related to an early lease termination**[27](index=27&type=chunk) [Operating Expenses](index=5&type=section&id=Operating%20Expenses) Operating expenses increased due to strategic investments in expansion, new teams, and rising employee-related costs - Q2 2025 operating expenses were **$51.9 million**, an increase from $49.4 million in Q1 2025 and $43.1 million in Q2 2024[28](index=28&type=chunk) - Expense growth was driven by ongoing expansion into New York City, new Long Island teams, increased health insurance costs, and annual merit increases[28](index=28&type=chunk)[29](index=29&type=chunk) [Asset Quality / Provision for Credit Losses](index=6&type=section&id=Asset%20Quality%20%2F%20Provision%20for%20Credit%20Losses) Asset quality deteriorated with a rise in nonperforming assets, leading to an increased provision for credit losses - Nonperforming assets increased to **$115.0 million (1.60% of total assets)** at June 30, 2025, up from $97.2 million at March 31, 2025[31](index=31&type=chunk) - The provision for credit losses was **$6.6 million** for Q2 2025, driven by deterioration in economic model drivers and a **$5.8 million specific reserve** for one equipment financing relationship[32](index=32&type=chunk) Allowance for Credit Losses (ACL) to Total Loans | Date | ACL % of Total Loans | | :--- | :--- | | June 30, 2025 | 1.40% | | March 31, 2025 | 1.31% | | June 30, 2024 | 1.29% | [Capital](index=6&type=section&id=Capital) The company maintained a strong capital position while executing share repurchases and paying dividends Key Capital Ratios as of June 30, 2025 | Ratio | Company | Bank | | :--- | :--- | :--- | | Tier 1 Leverage | 8.94% | 9.99% | | Common Equity Tier 1 | 10.99% | 12.29% | - Tangible book value per share increased 4% to **$33.19** at June 30, 2025 from $31.89 at December 31, 2024[35](index=35&type=chunk) - In Q2 2025, the company repurchased **100,000 shares for $2.8 million** and declared a cash dividend of **$0.05 per share**[34](index=34&type=chunk)[36](index=36&type=chunk) [Supplementary Information](index=6&type=section&id=Supplementary%20Information) [About the Company](index=6&type=section&id=About%20the%20Company) The company is a New Jersey-based bank holding firm with significant assets and a focus on private banking - As of June 30, 2025, the company has total assets of **$7.2 billion** and assets under management and/or administration of **$12.3 billion**[37](index=37&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This section outlines risks and uncertainties that could cause actual results to differ from stated expectations - The report contains forward-looking statements subject to numerous risks and uncertainties, such as economic declines, interest rate volatility, and the ability to implement its strategic plan[39](index=39&type=chunk) - The company states it undertakes no duty to update any forward-looking statements to conform to actual results, except as required by law[40](index=40&type=chunk) [Detailed Financial Tables](index=9&type=section&id=Detailed%20Financial%20Tables) The appendix includes comprehensive unaudited financial tables covering performance, condition, and asset quality - The appendix contains detailed financial tables, including Selected Consolidated Financial Data (Income Statement), Consolidated Statements of Condition (Balance Sheet), Asset Quality data, Capital Adequacy ratios, Loans Closed, and Average Balance Sheets[42](index=42&type=chunk)[43](index=43&type=chunk)[50](index=50&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=21&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section defines and reconciles non-GAAP metrics like tangible book value and the efficiency ratio to GAAP standards - The report provides reconciliations for non-GAAP measures to their nearest GAAP equivalents, explaining that intangible assets are excluded to calculate tangible equity and tangible assets[77](index=77&type=chunk)[78](index=78&type=chunk) - The non-GAAP efficiency ratio is calculated by dividing core operating expenses by recurring revenue (net interest income plus noninterest income, excluding certain gains/losses)[79](index=79&type=chunk)