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Updates full-year outlook to reflect more challenging macro environment; Company continues to focus on execution of operational priorities

Second Quarter 2026 Highlights

Revenue of $867 million, down 17 percent versus Q2 2025 Revenue excluding India1 of $841 million, down 20 percent versus Q2 2025 (which included India) Organic revenue2 for the period declined 22 percent Consolidated GAAP net loss of $187 million, a decline of $253 million versus Q2 2025 Adjusted EBITDA of $153 million, down 26 percent versus Q2 2025 Consolidated GAAP net loss of $1.49 per diluted share, down $2.02 versus Q2 2025 Adjusted earnings per diluted share of $0.26, down 62% versus Q2 2025 GAAP cash from operations of $363 million, an increase of $297 million versus Q2 2025 Full-Year Outlook1

Revenue excluding India lowered to a range of $3.50 billion to $3.70 billion, a decline of 7 percent at the midpoint versus 2025 Excluding 2025 India contributions, the 2026 outlook represents a decline at the midpoint of 5 percent Adjusted EBITDA lowered to a range of $620 million to $680 million, a decline of 23 percent at the midpoint Adjusted earnings per diluted share lowered to a range of $1.19 to $1.49, a decline of 55 percent at the midpoint Free cash flow, which now includes the upfront licensing payment for rimisoxafen of $200 million, increased to a range of $75 million to $225 million , /PRNewswire/ -- FMC Corporation (NYSE: FMC) today reported second quarter 2026 revenue of $867 million, down 17 percent versus second quarter 2025.  Second quarter 2026 revenue, excluding India, was $841 million, down 20 percent versus second quarter 2025, which included India.  On a GAAP basis, the company reported a loss of $1.49 per diluted share in the second quarter, a decrease of $2.02 versus second quarter 2025.  Second quarter adjusted earnings per diluted share of $0.26 was down 62 percent versus second quarter 2025.

"During the quarter, we completed several important actions that strengthened FMC's financial foundation and provide greater flexibility to execute our strategy," said Pierre Brondeau, chairman, chief executive officer and president. "With the strategic review now concluded, we have clarity on the path forward and remain focused on improving competitiveness, advancing our technology portfolio and positioning the company for long-term growth."

FMC Revenue

Q2 2026

Total Revenue Change (GAAP)

(17) %

Total Revenue Change (ex-India) (Non-GAAP)

(20) %

Less: 2025 revenue for India held for sale business

(5) %

Like-for-Like Revenue Change (Non-GAAP)

(15) %

Second quarter sales of $841 million, excluding India, were 20 percent lower than prior year.  The removal of India represented a 5 percent sales headwind.  Volumes declined 10 percent due to lower diamide partner orders and reduced demand for core legacy products, particularly in North America, as growers contend with strained margins. Price declined 7 percent, driven by pressure on the company's core legacy products and planned Rynaxypyr® active pricing actions.  Foreign currency was a 2 percent tailwind.  The growth portfolio grew mid-single digits as lower Plant Health sales were more than offset by strong performances from new active ingredients and Cyazypyr® active, reflecting continued demand for innovative solutions. Branded sales of Rynaxypyr® were essentially flat versus prior year, excluding India, with strong demand for new formulations.

FMC Regional Revenue ($M)

Q2 2026

Q2 2025

North America

$249

$321

Latin America

$278

$310

EMEA

$214

$260

Asia (excluding 2026 India)1

$101

$159

2026 India1

$26

—

Total Revenue (GAAP)

$867

$1,051

Totals may not sum due to rounding

GAAP net loss in the second quarter declined $253 million primarily due to lower sales, higher restructuring costs and higher interest expense. FMC second quarter Adjusted EBITDA was $153 million, a decrease of 26 percent from the prior-year period.  Lower price and volume were partially offset by favorable costs and a moderate FX tailwind.

On a GAAP basis, cash from operations for the second quarter was $363 million, an increase of $297 million versus 2025, including a $200 million upfront payment related to the rimisoxafen active ingredient licensing agreement.  Free cash flow was $357 million, an improvement of $318 million versus Q2 2025 primarily due to higher cash from operations.

Strategy Update

FMC continued to make progress on its four operational pillars during the second quarter: reducing debt, improving the competitiveness of its core portfolio, managing the post-patent transition for Rynaxypyr® and accelerating growth of new active ingredients. These pillars remain the foundation of the company's plan to improve earnings and cash generation, positioning FMC to take full advantage of its technology-driven growth potential.

During the quarter, FMC announced the key components of its targeted approximately $1 billion of proceeds to be used for debt reduction. These actions included signing a definitive agreement for the sale of its India commercial business for $252 million, closing on a licensing agreement for rimisoxafen with Corteva for an upfront payment of $200 million, signing a sale-leaseback agreement for its Newark, Delaware property for $114 million and reaching an agreement for a $400 million equity investment from Tessenderlo Group. With these actions and other minor asset sales to be completed this year, FMC expects to generate approximately $1 billion of proceeds to be used for debt paydown.  The India commercial business sale, the Newark, Delaware property sale and the Tessenderlo Group investment are subject to various closing conditions, including regulatory approvals.

With these actions in place, the FMC Board of Directors has concluded the exploration of strategic options announced in February 2026. The company remains focused on executing its operational priorities and strengthening the foundation for future growth through its differentiated technology portfolio.

Full Year Outlook1

The company has updated its full-year 2026 revenue, Adjusted EBITDA, Adjusted EPS and free cash flow guidance ranges.  Full year 2026 revenue guidance1 is now $3.50 billion to $3.70 billion, a decline of 7 percent at the midpoint versus prior year1. The updated guidance reflects a more challenging operating environment and incorporates the company's current view of customer purchasing patterns and market conditions.  Price is expected to be lower by mid-to-high single digits mainly due to a challenging macro environment as well as planned pricing actions for Rynaxypyr®. Excluding India, volume is expected to be in line with prior year as reduced diamide partner orders are offset by growth in nearly all other parts of the portfolio. India represents a 2 percent headwind1. FX is expected to be a low-single digit tailwind.

Adjusted EBITDA is expected to be $620 million to $680 million, a decline of 23 percent versus prior year, as lower price and an FX headwind are partially offset by favorable costs. Adjusted EPS is expected to be $1.19 to $1.49, a decrease of 55 percent versus prior year, primarily due to lower Adjusted EBITDA and increased interest expense. Free cash flow is expected to be $75 million to $225 million.  Free cash flow guidance now includes the $200 million upfront payment received for rimisoxafen licensing.

Third Quarter and Fourth Quarter Outlooks1

Third quarter revenue excluding India is expected to be in the range of $840 million to $900 million, down 9 percent at the midpoint versus third quarter 2025. Price is expected to be lower by mid-to-high single digits. FX is expected to be neutral. Volume is expected to be lower as distributors in North America shift orders from Q3 to Q4 to align purchases more closely with application timing and manage inventory levels. Adjusted EBITDA is forecasted to be in the range of $120 million to $140 million, a decrease of 45 percent at the midpoint versus the prior year as lower sales and an FX headwind are partially offset by favorable costs. FMC expects adjusted earnings per diluted share to be in the range of $0.05 to $0.13 in the third quarter, which represents a 90 percent decline at the midpoint versus third quarter 2025 driven mainly by lower adjusted EBITDA and higher interest expense.

The company expects a return to year-over-year growth in the fourth quarter. Fourth quarter revenue excluding India is expected to be in the range of $1.06 billion to $1.20 billion, an increase of 4 percent at the midpoint versus fourth quarter 2025. Volume is expected to show healthy growth driven by increased direct sales to growers in Brazil, new active ingredients and North America distributor orders that shifted from Q3 to Q4. Price is expected to decline by mid-to-high single digits.  Adjusted EBITDA is forecasted to be in the range of $275 million to $315 million, an increase of 5 percent at the midpoint versus the prior year as lower price and an FX headwind are more than offset by higher volume and favorable costs.  FMC expects adjusted earnings per diluted share to be in the range of $1.09 to $1.33 in the fourth quarter, which represents a 1 percent increase at the midpoint versus fourth quarter 2025.

Full-Year 2026 Outlook1

 H2 2026    Outlook1

Third Quarter Outlook1

Fourth Quarter Outlook1

Revenue Excl. India

$3.50 billion to

$3.70 billion

$1.90 billion to

$2.10 billion

$840 million to

$900 million

$1.06 billion to

$1.20 billion

Growth at midpoint vs. 2025*

(7) %

(2) %

(9) %

4 %

Adjusted EBITDA

$620 million to

$680 million

$395 million to

$455 million

$120 million to

$140 million

$275 million to

$315 million

Growth at midpoint vs. 2025*

(23) %

(18) %

(45) %

5 %

Adjusted EPS^

$1.19 to $1.49

$1.16 to $1.46

$0.05 to $0.13

$1.09 to $1.33

Growth at midpoint vs. 2025*

(55) %

(37) %

(90) %

1 %

^ EPS estimates assume 125.9 million diluted shares for full year, H2, Q3 and Q4

*Percentages are calculated using whole numbers.  Minor differences may exist due to rounding.  India excluded from 2026 guidance and H2 2025

Supplemental Information

The company will post supplemental information on the web at https://investors.fmc.com, including its webcast slides for tomorrow's earnings call, definitions of non-GAAP terms and reconciliations of non-GAAP figures to the nearest available GAAP term.

Always read and follow all label directions, restrictions and precautions for use. Products listed here may not be registered for sale or use in all states, countries or jurisdictions. FMC, the FMC logo, Cyazypyr and Rynaxypyr are trademarks of FMC Corporation or an affiliate.

About FMC

FMC Corporation is a global agricultural sciences company dedicated to helping growers produce food, feed, fiber and fuel for an expanding world population while adapting to a changing environment. FMC's innovative crop protection solutions – including biologicals, crop nutrition, digital and precision agriculture – enable growers and crop advisers to address their toughest challenges economically while protecting the environment. FMC is committed to discovering new herbicide, insecticide and fungicide active ingredients, product formulations and pioneering technologies that are consistently better for the planet. Visit fmc.com to learn more and follow us on LinkedIn®.

Statement under the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995:  FMC and its representatives may from time to time make written or oral statements that are "forward-looking" and provide other than historical information, including statements contained in this press release, in FMC's other filings with the SEC, and in presentations, reports or letters to FMC stockholders.

In some cases, FMC has identified these forward-looking statements by such words or phrases as "outlook", "will likely result," "is confident that," "expect," "expects," "should," "could," "may," "will continue to," "believe," "believes," "anticipates," "predicts," "forecasts," "estimates," "projects," "potential," "intends" or similar expressions identifying "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the negative of those words or phrases. Such forward-looking statements are based on our current views and assumptions regarding future events, future business conditions and the outlook for the company based on currently available information. The forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These statements are qualified by reference to the risk factors included in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Form 10-K"), the section captioned "Forward-Looking Information" in Part II of the 2025 Form 10-K and to similar risk factors and cautionary statements in all other reports and forms filed with the Securities and Exchange Commission ("SEC"). We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made.  Forward-looking statements are qualified in their entirety by the above cautionary statement.

We specifically decline to undertake any obligation, and specifically disclaim any duty, to publicly update or revise any forward-looking statements that have been made to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events, except as may be required by law.

This press release contains certain "non-GAAP financial terms" which are defined on our website www.fmc.com/investors. Such terms include Adjusted EBITDA, Adjusted earnings, free cash flow and organic revenue growth. In addition, we have also provided on our website reconciliations of non-GAAP terms to the most directly comparable GAAP terms.

Although we provide forecasts for adjusted earnings per share, Adjusted EBITDA, and free cash flow (non-GAAP financial measures), we are not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP. Certain elements of the composition of the GAAP amounts are not predictable, making it impractical for us to forecast. Such elements include, but are not limited to, restructuring, acquisition charges, our India held for sale business, and discontinued operations. As a result, no GAAP outlook is provided. Starting with the third quarter 2025 guidance, we provide forecasts for revenue excluding India (non-GAAP financial measure). We are not able to forecast the GAAP revenue due to potential actions we may take during the held for sale period to prepare the business for a potential buyer and other uncertainties, including customer reaction to the announcement of our intention to sell our India commercial business. In 2026, revenue, Adjusted EBITDA and Adjusted EPS outlooks provided exclude India results and variances are calculated versus 2025 results, which include India results in the first half of the year.  Organic revenue growth (non-GAAP) excludes the impact of foreign currency changes and the removal of India. FMC CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

(In millions, except per share amounts)

2026

2025

2026

2025

Revenue

$         867.1

$      1,050.5

$      1,625.7

$      1,841.9

Costs of sales and services

525.0

644.2

1,037.0

1,118.9

Gross margin

$         342.1

$         406.3

$         588.7

$         723.0

Selling, general and administrative expenses

179.1

176.8

364.2

348.8

Research and development expenses

60.4

66.4

125.9

135.1

Restructuring and other charges (income)

222.3

36.7

299.3

54.5

Total costs and expenses

$         986.8

$         924.1

$      1,826.4

$      1,657.3

Income from continuing operations before non-operating
pension, postretirement, and other charges (income), interest
expense, net and income taxes

$       (119.7)

$         126.4

$       (200.7)

$         184.6

Non-operating pension, postretirement, and other charges (income)

3.3

6.6

6.7

9.8

Interest expense, net

71.3

61.0

136.1

111.1

Income (loss) from continuing operations before income taxes

$       (194.3)

$           58.8

$       (343.5)

$           63.7

Provision (benefit) for income taxes

(1.5)

14.4

110.6

27.9

Income (loss) from continuing operations

$       (192.8)

$           44.4

$       (454.1)

$           35.8

Discontinued operations, net of income taxes

6.5

23.4

(13.4)

16.4

Net income (loss)

$       (186.3)

$           67.8

$       (467.5)

$           52.2

Less: Net income (loss) attributable to noncontrolling interests

0.3

1.1

0.4

1.0

Net income (loss) attributable to FMC stockholders

$       (186.6)

$           66.7

$       (467.9)

$           51.2

Amounts attributable to FMC stockholders:

  Income (loss) from continuing operations, net of tax

$       (193.1)

$           43.3

$       (454.5)

$           34.8

  Discontinued operations, net of tax

6.5

23.4

(13.4)

16.4

  Net income (loss)

$       (186.6)

$           66.7

$       (467.9)

$           51.2

Basic earnings (loss) per common share attributable to FMC
stockholders:

  Continuing operations

$         (1.54)

$           0.34

$         (3.62)

$           0.28

  Discontinued operations

0.05

0.19

(0.11)

0.13

  Basic earnings per common share

$         (1.49)

$           0.53

$         (3.73)

$           0.41

Average number of shares outstanding used in basic earnings per
share computations

125.4

125.2

125.3

125.1

Diluted earnings (loss) per common share attributable to FMC
stockholders:

  Continuing operations

$         (1.54)

$           0.34

$         (3.62)

$           0.28

  Discontinued operations

0.05

0.19

(0.11)

0.13

  Diluted earnings per common share

$         (1.49)

$           0.53

$         (3.73)

$           0.41

Average number of shares outstanding used in diluted earnings per
share computations

125.4

125.6

125.3

125.5

Other Data:

Capital additions and other investing activities

$           (6.5)

$             9.8

$             9.3

$           47.2

Depreciation and amortization expense

$          41.1

$           43.4

$           83.1

$           87.1

FMC CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO FMC STOCKHOLDERS (GAAP) TO
ADJUSTED AFTER-TAX EARNINGS FROM CONTINUING OPERATIONS, ATTRIBUTABLE TO FMC
STOCKHOLDERS (NON-GAAP) (1)

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

(In millions, except per share amounts)

2026

2025

2026

2025

Net income (loss) attributable to FMC stockholders (GAAP)

$         (186.6)

$             66.7

$      (467.9)

$          51.2

Corporate special charges (income):

Restructuring and other charges (income) (a)

148.0

36.7

242.7

54.5

Non-operating pension, postretirement, and other charges
(income) (b)

3.3

6.6

6.7

9.8

India held for sale business (c)

83.2

—

99.6

—

Income tax expense (benefit) on Corporate special charges
(income) (d)

(30.4)

(6.8)

(48.7)

(11.2)

Discontinued operations attributable to FMC stockholders, net of
income taxes (e)

(6.5)

(23.4)

13.4

(16.4)

Tax adjustment (f)

22.1

6.9

158.4

21.2

Adjusted after-tax earnings (loss) from continuing operations 
attributable to FMC stockholders (non-GAAP) (1)

$             33.1

$             86.7

$            4.2

$        109.1

Diluted earnings (loss) per common share (GAAP)

$           (1.49)

$             0.53

$        (3.73)

$          0.41

Corporate special charges (income) per diluted share, before tax:

Restructuring and other charges (income)

1.17

0.29

1.94

0.43

Non-operating pension, postretirement, and other charges
(income)

0.03

0.05

0.05

0.08

India held for sale business

0.66

—

0.79

—

Income tax expense (benefit) on Corporate special charges
(income), per diluted share

(0.24)

(0.04)

(0.39)

(0.09)

Discontinued operations attributable to FMC stockholders, net of
income taxes per diluted share 

(0.05)

(0.19)

0.11

(0.13)

Tax adjustments per diluted share

0.18

0.05

1.26

0.17

Diluted adjusted after-tax earnings (loss) from continuing
operations per share, attributable to FMC stockholders (non-
GAAP)

$             0.26

$             0.69

$          0.03

$          0.87

Average number of shares outstanding used in diluted adjusted
after-tax earnings (loss) from continuing operations per share
computations(2)

126.0

125.6

125.8

125.5

____________________

(1)

Referred to as Adjusted earnings. The Company believes that Adjusted earnings, a non-GAAP financial measure, and its presentation on a per share basis provides useful information about the Company's operating results to management, investors, and securities analysts. Adjusted earnings excludes the effects of corporate special charges, the India held for sale business, tax-related adjustments and the results of our discontinued operations. The Company also believes that excluding the effects of these items from operating results allows management and investors to compare more easily the financial performance of its underlying business from period to period.

(2)

The average number of shares outstanding used in the three and six months ended June 30, 2026 diluted adjusted after-tax earnings from continuing operations per share computation (Non-GAAP) includes 0.6 million and 0.4 million diluted shares, respectively. This number of shares differs from the average number of shares outstanding used in diluted earnings per share computations (GAAP) as we had a net loss from continuing operations attributable to FMC stockholders.

(a)

Three Months Ended June 30, 2026:

Restructuring and other charges (income) includes restructuring charges of $139.5 million primarily comprised of $136.5 million in charges related to Project Foundation, which is management's comprehensive plan to further optimize FMC's cost structure and organizational operations. The charges for Project Foundation include non-cash asset write-off and accelerated depreciation costs of $134.2 million primarily associated with the planned exit of certain production activities, which includes a write-off of $70.6 million for certain receivables due to a change in our commercial strategy in Latin America; severance and employee separation costs of $5.3 million; and, other miscellaneous income of $3.0 million, which includes cash proceeds from the sale of a legacy product line partially offset by professional service provider costs. During the three months ended June 30, 2026, we also recorded Project Focus-related costs of $2.9 million, primarily related to miscellaneous charges associated with previously implemented activities. Other charges (income) included $5.4 million of charges associated with our environmental sites and $3.1 million of other miscellaneous charges.

Three Months Ended June 30, 2025:

Restructuring and other charges (income) includes restructuring charges of $13.0 million primarily related to Project Focus, which included $5.4 million of severance and employee separation costs, and accelerated depreciation of $2.5 million on assets identified for disposal in connection with the restructuring initiative, and $4.9 million of professional service provider costs and other miscellaneous charges. Other charges (income) of $23.7 million is comprised of $7.4 million of charges associated with our environmental sites, a charge of $11.9 million due to changes in our estimate for Furadan® disposal costs at our Middleport site, and $4.4 million of other miscellaneous charges.

Six Months Ended June 30, 2026:

Restructuring and other charges (income) includes restructuring charges of $234.0 million primarily comprised of $226.6 million in charges related to Project Foundation, which include non-cash asset write-off and accelerated depreciation costs of $198.9 million primarily associated with the planned exit of certain production activities, which includes a write-off of $70.6 million for certain receivables due to a change in our commercial strategy in Latin America; severance and employee separation costs of $11.5 million; and, other miscellaneous charges of $16.2 million, which includes contract exit costs and professional service provider costs partially offset by the cash proceeds from the sale of a legacy product line. During the six months ended June 30, 2026, we also recorded Project Focus-related costs of $7.2 million, primarily related to miscellaneous charges associated with previously implemented activities. Other charges (income) included $9.3 million of charges associated with our environmental sites and $0.6 million of other miscellaneous income.

Six Months Ended June 30, 2025

Restructuring and other charges (income) includes restructuring charges of $26.6 million primarily related to Project Focus, which included $9.6 million of severance and employee separation costs, accelerated depreciation of $5.6 million on assets identified for disposal in connection with the restructuring initiative, and $11.5 million of professional service provider costs and other miscellaneous charges. Other charges (income) of $27.9 million is comprised of $10.9 million of charges associated with our environmental sites, a charge of $11.9 million due to changes in our estimate for Furadan® disposal costs at our Middleport site, and $5.1 million of other miscellaneous charges.

(b)

Our non-operating pension, postretirement and other charges (income) includes those costs (benefits) related to interest, expected return on plan assets, amortized actuarial gains and losses and the impacts of any plan curtailments or settlements. These are excluded from our Adjusted earnings and are primarily related to changes in pension plan assets and liabilities which are tied to financial market performance and we consider these costs to be outside our operational performance. We continue to include the service cost and amortization of prior service cost in our Adjusted earnings results noted above. These elements reflect the current year operating costs to our businesses for the employment benefits provided to active employees.  

(c)

In July 2025, the Board of Directors approved a plan to divest the Company's commercial business in India in response to ongoing challenges in the country. In May 2026, the Company announced that it has signed a definitive agreement to sell the India commercial business to Crystal Crop Protection Limited for consideration of $252 million, subject to customary adjustments for cash, debt and working capital. The Company will continue to receive all cash generated from the ongoing operation of the India business until closing, primarily through monetization of working capital, and the sale is expected to close during 2026. The assets related to this business have been classified as held for sale since the third quarter of 2025. The business does not qualify for recognition as discontinued operations and will continue to be presented in the Company's reported GAAP results until a transaction is completed. Beginning with the third quarter of 2025, we have excluded the impact of various activities associated with the anticipated sale from our operating results for non-GAAP purposes. Refer to the table below for the adjustments related to the India held for sale business for the three and six months ended June 30, 2026.

Three Months Ended June 30,

Six Months Ended June 30,

Affected Line Item in the Consolidated
Statements of Income (Loss)

(In millions)

2026

2025

2026

2025

Operating results

$                 8.9

$                  —

$            43.0

$               —

Revenue, Cost of sales and services,
and Selling, general and
administrative expenses

Asset impairment

64.0

—

43.6

—

Restructuring and other charges
(income)

Third party provider costs

10.3

—

13.0

—

Restructuring and other charges
(income)

India held for sale business

$               83.2

$                  —

$            99.6

$               —

(d)

The income tax expense (benefit) on Corporate special charges (income) is determined using the applicable rates in the taxing jurisdictions in which the corporate special charge or income occurred and includes both current and deferred income tax expense (benefit) based on the nature of the non-GAAP performance measure.

(e)

Discontinued operations includes provisions, net of recoveries, for environmental liabilities and legal reserves and expenses related to previously discontinued operations and retained liabilities. 

(f)

We exclude the GAAP tax provision, including discrete items, from the non-GAAP measure of income, and include a non-GAAP tax provision based upon the projected annual non-GAAP effective tax rate. The GAAP tax provision includes certain discrete tax items including, but are not limited to: income tax expenses or benefits that are not related to continuing operating results in the current year; tax adjustments associated with fluctuations in foreign currency remeasurement of certain foreign operations; certain changes in estimates of tax matters related to prior fiscal years; certain changes in the realizability of deferred tax assets and related interim accounting impacts; and changes in tax law. In 2024 and 2023, we recorded significant deferred tax assets due to various tax incentives granted to the Company's Swiss subsidiaries (the "Swiss Tax Incentives"). The initial recognition of these Swiss Tax Incentives did not impact our adjusted non-GAAP effective tax rate but will be considered annually as we realize the benefits. Management believes excluding these discrete tax items, as well as the impacts of the Swiss Tax Incentives annually as the related benefits are realized, assists investors and securities analysts in understanding the tax provision and the effective tax rate related to continuing operating results thereby providing investors with useful supplemental information about FMC's operational performance.

Three Months Ended June 30,

Six Months Ended June 30,

(In millions)

2026

2025

2026

2025

Tax adjustments:

Revisions to valuation allowances of historical deferred tax assets (i)

$               —

$               —

$          124.7

$            (1.2)

Net impact of Switzerland tax incentives

6.4

10.5

0.9

13.3

Foreign currency remeasurement and other discrete items

15.7

(3.6)

32.8

9.1

Total non-GAAP tax adjustments

$            22.1

$              6.9

$          158.4

$            21.2

____________________

(i)

As a result of changes in global earnings mix and ongoing tax planning implemented in March 2026, we reevaluated the realizability of our historical deferred tax assets and recorded an increase to our valuation allowance in Switzerland of approximately $123 million during the six months ended June 30, 2026.

RECONCILIATION OF NET INCOME (LOSS) (GAAP) TO ADJUSTED EARNINGS FROM CONTINUING
OPERATIONS, BEFORE INTEREST, INCOME TAXES, DEPRECIATION AND
AMORTIZATION, AND NONCONTROLLING INTERESTS (NON-GAAP) (3)

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

(In millions)

2026

2025

2026

2025

Net income (loss) (GAAP)

$         (186.3)

$             67.8

$      (467.5)

$          52.2

Restructuring and other charges (income) (1)

148.0

36.7

242.7

54.5

Non-operating pension, postretirement, and other charges
(income)

3.3

6.6

6.7

9.8

India held for sale business (2)

83.2

—

99.6

—

Discontinued operations, net of income taxes

(6.5)

(23.4)

13.4

(16.4)

Interest expense, net

71.3

61.0

136.1

111.1

Depreciation and amortization

41.1

43.4

83.1

87.1

Provision (benefit) for income taxes

(1.5)

14.4

110.6

27.9

Adjusted earnings from continuing operations, before interest,
income taxes, depreciation and amortization, and
noncontrolling interests (non-GAAP) (3)

$           152.6

$           206.5

$        224.7

$        326.2

___________________

(1)

In the reconciliation above, charges recorded in connection with the India held for sale business of $74.3 million and $56.6 million for the three and six months ended June 30, 2026, respectively, are presented in the India held for sale business line, as described in the reconciliation in note (c) above. On the consolidated statements of income (loss), these adjustments are recorded to "Restructuring and other charges (income)."

(2)

Beginning with the third quarter of 2025, we excluded the operating results of the India commercial business during the held for sale period for non-GAAP purposes. For further details on the charges and write-downs recorded in connection with the India held for sale business, refer to note (c) in the reconciliation above.

(3)

Referred to as Adjusted EBITDA. Defined as operating profit excluding restructuring and other charges (income), depreciation and amortization expense, and the India held for sale business.

RECONCILIATION OF CASH PROVIDED (REQUIRED) BY OPERATING ACTIVITIES OF
CONTINUING OPERATIONS (GAAP) TO FREE CASH FLOW (NON-GAAP) (2)

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

(In millions)

2026

2025

2026

2025

Cash provided (required) by operating activities of continuing
operations (GAAP) (1)

$            363.0

$              65.9

$      (237.9)

$      (479.1)

Capital expenditures

(5.3)

(15.0)

(21.9)

(46.6)

Other investing activities

11.8

5.2

12.6

(0.6)

Capital additions and other investing activities

$                6.5

$               (9.8)

$          (9.3)

$        (47.2)

Cash provided (required) by operating activities of discontinued
operations

(18.6)

(16.4)

(34.3)

(29.7)

Divestiture transaction costs (2)

6.5

—

10.8

—

Free cash flow (non-GAAP) (3)

$            357.4

$              39.7

$      (270.7)

$      (556.0)

___________________

(1)

The three and six months ended June 30, 2026 includes cash payments of $26.1 million and $92.5 million, respectively, for restructuring activities primarily related to the Project Focus and Project Foundation transformation programs. The three and six months ended June 30, 2025 includes cash payments of $14.9 million and $70.6 million, respectively, made in connection with Project Focus.

(2)

Represents third party provider costs associated with the expected sale of our India commercial business. Proceeds from the sale of our India commercial business anticipated in 2026 will be excluded from free cash flow when received. Therefore, we have also excluded the related transaction costs from free cash flow.

(3)

Free cash flow is defined as cash provided (required) by operating activities of continuing operations (GAAP) adjusted for spending for capital additions and other investing activities as well as cash provided (required) by discontinued operations and divestiture transaction costs associated with the sale of our GSS business. We believe that this non-GAAP financial measure provides a useful basis for investors and securities analysts to evaluate the cash generated by routine business operations, including to assess our ability to repay debt, fund acquisitions and return capital to shareholders through share repurchases and dividends. Our use of free cash flow has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results under U.S. GAAP.

RECONCILIATION OF REVENUE (GAAP) 

TO REVENUE EXCLUDING INDIA (NON-GAAP) (2)

(Unaudited)

Three Months Ended June 30,

Six Months Ended June 30,

(In millions)

2026

2025

2026

2025

Revenue (GAAP)

$               867.1

$            1,050.5

$            1,625.7

$            1,841.9

Less: Revenue from India commercial business (1)

25.7

—

21.9

—

Revenue excluding India (non-GAAP) (2)

$               841.4

$            1,050.5

$            1,603.8

$            1,841.9

___________________

(1)

Beginning with the third quarter of 2025, revenue from the India commercial business is excluded from our adjusted results during the held for sale period for non-GAAP purposes. Refer to note (c) above for further details. 

(2)

Although the India held for sale business does not qualify for recognition as discontinued operations, we believe Revenue excluding India (non-GAAP) provides management and investors with useful supplemental information regarding our ongoing revenue performance.

RECONCILIATION OF REVENUE CHANGE (GAAP) TO

ORGANIC REVENUE CHANGE (NON-GAAP) (1)

(Unaudited)

Three Months Ended June 30, 2026
vs. 2025

Six Months Ended June 30, 2026
vs. 2025

Total revenue (GAAP) change

(17) %

(12) %

Less: Revenue for India held for sale business for the three
and six months ended June 30, 2026

3 %

1 %

Revenue excluding India (non-GAAP) change (1)

(20) %

(13) %

Less:  Foreign currency impact

2 %

3 %

Organic revenue (non-GAAP) change (2)

(22) %

(16) %

___________________

(1)

Beginning with the third quarter of 2025, revenue from the India commercial business is excluded from our adjusted results during the held for sale period for non-GAAP purposes. Refer to note (c) above for further details. 

(2)

We believe organic revenue growth (non-GAAP) provides management and investors with useful supplemental information regarding our ongoing revenue performance and trends by presenting revenue growth excluding the impact of fluctuations in foreign exchange rates and the India held for sale business.

RECONCILIATION OF NET INCOME (LOSS) ATTRIBUTABLE TO

FMC STOCKHOLDERS (GAAP) TO RETURN ON INVESTED CAPITAL ("ROIC")

NUMERATOR (NON-GAAP) AND ADJUSTED ROIC (USING NON-GAAP NUMERATOR) (1)

(Unaudited)

Twelve Months Ended

(In millions, except percentages)

June 30, 2026

Net income (loss) attributable to FMC stockholders (GAAP)

$                     (2,758.0)

Interest expense, net, net of income taxes

225.4

Corporate special charges (income)

1,979.5

India held for sale business

621.3

Income tax expense (benefit) on Corporate special charges (income)

(195.6)

Discontinued operations attributable to FMC stockholders, net of income
taxes

66.4

Tax adjustments

553.5

ROIC numerator (non-GAAP)

$                          492.5

June 30, 2026

June 30, 2025

Total debt

$                       4,280.6

$                          4,163.3

Total FMC stockholders' equity

1,636.8

4,397.0

Total debt and FMC stockholders' equity (GAAP)

$                       5,917.4

$                          8,560.3

ROIC denominator (2 yr average total debt and FMC stockholders' equity)          

$                       7,238.9

ROIC (using Net income (loss) attributable to FMC stockholders (GAAP)
as numerator)

(38.10) %

Adjusted ROIC (using non-GAAP numerator) (1)

6.80 %

___________________

(1)

We believe Adjusted ROIC (non-GAAP) provides management and investors with useful supplemental information regarding our utilization of capital provided by both equity and debt as well as our working capital and free cash flow management. Additionally, vesting of certain restricted stock awards granted to officers is connected to Adjusted ROIC as a performance metric.

FMC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In millions)

June 30, 2026

December 31, 2025

Cash and cash equivalents

$                 476.6

$                 584.5

Trade receivables, net of allowance of $45.6 in 2026 and $43.3 in 2025     

2,070.5

2,062.0

Inventories

1,209.3

1,219.6

Prepaid and other current assets

570.7

481.2

Assets held for sale (1)

401.6

611.7

Total current assets

$              4,728.7

$              4,959.0

Property, plant and equipment, net

554.7

707.4

Other intangibles, net

2,307.9

2,361.8

Deferred income taxes

1,134.3

1,215.6

Other long-term assets

419.2

443.4

Total assets

$              9,144.8

$              9,687.2

Short-term debt and current portion of long-term debt

$                 326.3

$              1,305.1

Accounts payable, trade and other

657.8

771.0

Advanced payments from customers

35.5

453.1

Accrued and other liabilities

606.8

574.0

Accrued customer rebates

632.4

417.4

Guarantees of vendor financing

39.6

45.7

Accrued pensions and other postretirement benefits, current

3.3

3.3

Income taxes

43.1

24.0

Liabilities held for sale (1)

34.6

161.7

Total current liabilities

$              2,379.4

$              3,755.3

Long-term debt, less current portion

$              3,954.3

$              2,769.8

Long-term liabilities

1,150.0

1,063.2

Equity

1,661.1

2,098.9

Total liabilities and equity

$              9,144.8

$              9,687.2

___________________

(1)

The carrying value of the India held for sale business decreased from $450 million as of December 31, 2025 to $350 million as of June 30, 2026 primarily due to receivable collections during the period as well as an impairment charge of approximately $44 million. The carrying value of the held for sale business is comprised of $367 million of net assets held for sale as presented on the consolidated balance sheet and a gain of $17 million related to foreign currency translation in connection with the assets identified for disposal. The foreign currency translation gains are recorded in "Accumulated other comprehensive income (loss)" on the consolidated balance sheet and will be reclassified to the consolidated statement of income (loss) upon close of the sale.

FMC CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Six Months Ended June 30,

(In millions)

2026

2025

Cash provided (required) by operating activities of continuing operations

$                (237.9)

$                (479.1)

Cash provided (required) by operating activities of discontinued operations

(34.3)

(29.7)

Cash provided (required) by investing activities of continuing operations

(10.0)

(51.4)

Cash provided (required) by financing activities of continuing operations

178.9

628.7

Effect of exchange rate changes on cash

(4.6)

12.4

Increase (decrease) in cash and cash equivalents

$                (107.9)

$                    80.9

Cash and cash equivalents, beginning of period

$                  584.5

$                  357.3

Cash and cash equivalents, end of period

$                  476.6

$                  438.2

SOURCE FMC Corporation

, /PRNewswire/ -- UFP Industries, Inc. (Nasdaq: UFPI) a leading manufacturer focused on delivering value-added products across its Retail, Packaging, and Construction segments reported results for the second quarter 2026.

Net Sales of $1.88 billion increased by 3 percent compared to $1.84 billion a year ago due to a 1 percent increase in organic units (excluding growth from acquisitions within the last 12 months) and a 2 percent increase due to acquisitions. Diluted earnings per share of $1.48 compared to $1.70 a year ago, and Net Earnings Attributable to Controlling Interests of $83 million compared to $101 million a year ago. Earnings were primarily impacted by higher freight costs while a weaker residential construction market was offset by improvements in other business units. Adjusted EBITDA1 was $154.5 million in the quarter, or 8.2 percent of net sales compared to $174.1 million, or 9.5 percent of net sales a year ago, as transportation costs increased by 1.6 percent as a percent of net sales. Cash flows from operating activities in the first six months of 2026 was $61 million. Cash used to invest in seasonal working capital requirements during the first six months totaled almost $170 million and is expected to be converted to cash by the beginning of the fourth quarter. Free cash flow1 of $198 million for the first six months of 2026 was used to repurchase nearly $142 million of our shares. Will Schwartz, President and CEO of UFP Industries, commented, "As we've discussed in prior quarters, we are seeing stabilization across the majority of our portfolio, and we believe our second quarter results reflect the progress we have made to strengthen our business and structurally improve our operations. The business environment remains challenging with geopolitical tensions, a weak housing market, rising input costs, and most recently, elevated transportation costs. We are actively managing these short-term disruptions while investing in initiatives that will improve our margin profile and drive above-market growth over the long term. We remain focused on the factors under our control and we are on track to deliver the remaining $25 million or more from our initial $60 million cost out program by year end. We also continue to strengthen our core businesses through organic investments and strategic M&A, positioning the company for long-term growth and returns as markets recover."

Schwartz continued, "Our balanced approach to our business has helped us navigate this uncertain environment while driving strong performance relative to market conditions. We continue to invest strategically by expanding geographically, improving operational efficiencies, and introducing innovative value-added products. To that point, the investments we've made to grow our Surestone products helped sales increase 37 percent from year ago levels, and our backlog remains robust. We also completed three acquisitions in the quarter that complement our core business and our M&A pipeline remains active. We will continue to make these investments in a targeted manner, while returning more of our free cash flow to shareholders through dividends and share repurchases. With $1.9 billion in liquidity at quarter end, we are confident in our ability to create shareholder value through prudent capital allocation."

1

Represents a non-GAAP measurement; see the reconciliation of non-GAAP financial measures and related explanations below.

Second Quarter 2026 Highlights

UFP Consolidated

(In thousands)

Quarter Period

Year to Date

2026

2025

% Change

2026

2025

% Change

Net sales

$

1,882,937

$

1,835,374

2.6

%

$

3,344,204

$

3,430,893

(2.5)

%

Net earnings

83,171

100,871

(17.5)

134,268

180,294

(25.5)

Net margin

4.4

%

5.5

%

4.0

%

5.3

%

Adjusted EBITDA

154,480

174,147

(11.3)

265,836

316,298

(16.0)

Adjusted EBITDA margin

8.2

%

9.5

%

7.9

%

9.2

%

Percentage change in net sales:

Organic units

1

%

(3)

%

Acquisitions

2

1

Selling prices

—

—

Net sales increased 3 percent in the quarter, driven primarily by acquisitions, as well as organic volume improvements in our Deckorators, Structural Packaging, Protective Packaging, Concrete Forming, and Commercial business units. Freight costs as a percent of net sales have increased by 1.6 percent, or $27 million, net of fuel surcharges and price adjustments, compared to year ago levels.  The increase was driven by higher market-based transportation rates as a result of tightening industry capacity and elevated fuel costs. Freight spot rates rose over 30 percent during the quarter, surpassing the rate of increase experienced during the COVID period, before stabilizing at an elevated level toward the end of the quarter. Industry-wide changes resulted in constrained carrier capacity, as smaller carriers have exited the market, which contributed to the higher rates. New product sales were 8.4 percent of total net sales compared to 6.5 percent a year ago, highlighting continued progress in expanding the portfolio of higher value-added products. UFP Retail

(In thousands)

Quarter Period

Year to Date

2026

2025

% Change

2026

2025

% Change

Net sales

$

818,743

$

788,224

3.9

%

$

1,349,919

$

1,395,607

(3.3)

%

Net earnings

37,018

41,128

(10.0)

55,690

61,791

(9.9)

Net margin

4.5

%

5.2

%

4.1

%

4.4

%

Adjusted EBITDA

63,934

63,978

(0.1)

98,766

99,827

(1.1)

Adjusted EBITDA margin

7.8

%

8.1

%

7.3

%

7.2

%

Percentage change in net sales:

Organic units

(1)

%

(6)

%

Acquisitions

2

1

Selling prices

3

2

ProWood organic unit sales declined 1 percent in the quarter from year ago levels, reflecting weaker consumer sentiment amid continued macroeconomic and geopolitical uncertainty. However, there have been favorable impacts from volume since the first quarter of 2026, reflecting gradually improving demand. Deckorators' organic unit sales grew 9 percent in the quarter from year ago levels. Our Surestone decking sales increased 37 percent and our traditional wood plastic composite decking increased 85 percent, partially offset by railings which declined 17 percent, from the same quarter a year ago. Our current backlog of ordered but unshipped Surestone decking is approximately $30 million as we continue to make progress optimizing capacity. The MoistureShield acquisition contributed a 51 percent increase in wood plastic composite decking sales. UFP Edge organic unit sales declined 17 percent due to the closure of the Bonner facilities at the end of 2025 and rationalizing the product portfolio to those that can achieve profitability targets. Adjusted EBITDA was unchanged in the quarter from year ago levels primarily due to higher transportation costs that were $17 million higher than last year. In the quarter, we were able to offset these headwinds through improved gross profits in Prowood from more favorable lumber price trends, UFP Edge from the restructuring of this business unit, and Deckorators primarily from favorable increases in volume. UFP Packaging

(In thousands)

Quarter Period

Year to Date

2026

2025

% Change

2026

2025

% Change

Net sales

$

458,245

$

428,669

6.9

%

$

852,338

$

838,677

1.6

%

Net earnings

11,315

20,633

(45.2)

22,974

37,550

(38.8)

Net margin

2.5

%

4.8

%

2.7

%

4.5

%

Adjusted EBITDA

27,933

38,796

(28.0)

55,723

73,841

(24.5)

Adjusted EBITDA margin

6.1

%

9.1

%

6.5

%

8.8

%

Percentage change in net sales:

Organic units

4

%

-

%

Acquisitions

4

3

Selling prices

(1)

(1)

Structural Packaging organic unit sales grew 8 percent in the quarter compared to year ago levels. PalletOne organic unit sales declined 3 percent in the quarter from year ago levels due to weaker demand, which was offset by a 12 percent contribution from acquisitions. Protective Packaging organic unit sales increased 15 percent in the quarter from a year ago levels as a result of the Jeffersonville, Indiana facility, which became fully operational in the third quarter of 2025. Adjusted EBITDA declined 28 percent in the quarter from year ago levels primarily due to higher transportation costs in each business unit, lower gross profits in PalletOne, and startup costs associated with new greenfield locations in Protective Packaging. UFP Construction

(In thousands)

Quarter Period

Year to Date

2026

2025

% Change

2026

2025

% Change

Net sales

$

526,777

$

551,590

(4.5)

%

$

992,290

$

1,067,530

(7.0)

%

Net earnings

19,631

27,563

(28.8)

31,354

49,507

(36.7)

Net margin

3.7

%

5.0

%

3.2

%

4.6

%

Adjusted EBITDA

36,045

45,480

(20.7)

61,732

82,790

(25.4)

Adjusted EBITDA margin

6.8

%

8.2

%

6.2

%

7.8

%

Percentage change in net sales:

Organic units

(2)

%

(4)

%

Acquisitions

1

1

Selling prices

(3)

(4)

Site Built organic unit sales declined 3 percent in the quarter from year ago levels reflecting softer demand driven by affordability challenges and economic uncertainty, which resulted in lower housing starts. Factory Built organic unit sales declined 6 percent in the quarter from year ago levels due to the loss of lower margin commodity sales, partially offset by a 1 percent contribution from acquisitions. Industry production has declined by 8 percent. Concrete Forming Solutions' organic unit sales grew 6 percent in the quarter from year ago levels driven by market share gains associated with value-added product sales. Commercial organic sales grew 11 percent in the quarter from year ago levels as overall demand has improved and as the business unit continues to gain market share. Adjusted EBITDA declined 21 percent in the quarter from year ago levels primarily due to lower gross profits in Site Built from macroeconomic pressures and competitive pricing, partially offset by improved gross profits in Commercial and Concrete Forming. Capital Structure, Leverage and Liquidity Information

UFP Industries maintains a strong balance sheet and as of June 27, 2026, had liquidity of approximately $1.9 billion consisting of over $597 million of Cash and cash equivalents and $1.3 billion of remaining availability under its revolving credit facility and a shelf agreement with certain lenders. The company's return-focused approach to capital allocation includes the following:

Organic Growth. The company invests in organic growth opportunities when acquisition targets are not available at valuations that will allow us to meet or exceed targeted return rates. The company expects to invest approximately $175 million to $200 million on capital projects for the balance of 2026. Acquisitions and Inorganic Growth.  During the second quarter, the company closed three transactions, expanding production capacity and expanding its geographic reach in its core businesses. On April 6, 2026, the company acquired the operating assets of the composite decking manufacturing facility of MoistureShield, Inc., a leading player in the growing wood plastic composite industry, for $55 million in cash. The acquisition expands our manufacturing capacity to meet the growing demand for our Deckorators product offering.  In 2025, MoistureShield had sales of approximately $50 million. On May 4, 2026, the company acquired the operating assets of John Rock, Inc., a leading manufacturer of new pallets, for $47 million in cash. In 2025, John Rock had sales of approximately $86 million. On May 18, 2026, the company acquired the operating assets of Berry Pallets, Inc., a wood pallet manufacturer, for $20 million in cash. In 2025, Berry Pallets had sales of approximately $23 million. Dividend Payments. On July 22, 2026, the Board declared a quarterly cash dividend of $0.36 per share. This dividend is payable on September 15, 2026, to shareholders of record on September 1, 2026. The per share cash dividend amount represents a 3% increase from the 2025 dividend rate. We continue to consider our payout ratio and yield when determining the appropriate dividend rate and have a long-term objective of increasing our dividend in line with our future earnings and free cash flow growth. Share Repurchases. During the first six months of 2026, we repurchased a total of 1,669,770 shares for $141.8 million, at an average share price of $84.95. On May 29, 2026, our board authorized a new repurchase plan for up to $300 million worth of our shares through April 30, 2027. This authorization supersedes and replaces our prior authorizations. As of July 29, 2026, approximately $273 million remain available under this latest repurchase authorization. 2026 Outlook and Long-Term Targets

Our full year 2026 outlook remains unchanged. We continue to expect overall demand for the balance of the year to be toward the lower end of our prior guidance of flat to slightly down unit expectations in each of our segments based on our sales mix.  Input costs, primarily energy and transportation, are expected to remain elevated, and while we have mechanisms to offset these costs, we expect recovery to be gradual through the remainder of the year.  Demand tied to new residential construction is expected to remain challenging, while stabilization across most other end markets should partially offset that pressure. Despite these conditions, we believe we are positioned to perform better than our markets through share gains across our portfolio and continued execution of our cost-out program. In addition, initial stocking orders, upgraded manufacturing capacity, and expanded distribution are expected to support continued momentum in our Deckorators' Surestone business.

The company's long-term goals remain unchanged and include: 1) achieving 7-10 percent unit sales growth annually (including bolt-on acquisitions) with at least 10 percent of all sales coming from new products; 2) achieving 12.5 percent adjusted EBITDA margins; 3) earning an incremental return on new investments over our hurdle rate; and 4) maintaining a conservative capital structure.

Conference Call

UFP Industries will host a conference call on Thursday, July 30, 2026, to discuss these results and outlook. The conference call will begin at 10:00 a.m. Eastern Time and will be hosted by CEO Will Schwartz and CFO Michael Cole. Interested investors can access the webcast directly with this link (here). A replay of the call will be available through the UFP Investor Relations website at www.ufpinvestor.com for at least 90 days following the call.

UFP Industries, Inc.                             

UFP Industries, Inc. is a holding company whose operating subsidiaries – UFP Packaging, UFP Construction and UFP Retail – manufacture, distribute and sell a wide variety of value-added products used in residential and commercial construction, packaging and other industrial applications worldwide. Founded in 1955, the company is headquartered in Grand Rapids, Mich., with affiliates in North America, Europe, Asia and Australia. For more about UFP Industries, go to www.ufpi.com.

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, that are based on management's beliefs, assumptions, current expectations, estimates and projections about the markets we serve, the economy and the Company itself. Words like "anticipates," "believes," "confident," "estimates," "expects," "forecasts," "likely," "plans," "projects," "should," variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. The Company does not undertake to update forward-looking statements to reflect facts, circumstances, events, or assumptions that occur after the date the forward-looking statements are made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially from forward-looking statements are the following: fluctuations in currency and inflation; fluctuations in the price of lumber; adverse or unusual weather conditions; adverse economic conditions in the markets we serve; changes in tariffs, import/export regulations, and other trade policies; concentration of sales to customers; the success of vertical integration strategies; excess capacity or supply chain challenges; inbound and outbound transportation costs; alternatives to replace treated wood products; government regulations, particularly involving environmental and safety regulations; our ability to make successful business acquisitions; cybersecurity breaches; and potential pandemics. Certain of these risk factors as well as other risk factors and additional information are included in the Company's reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission.

Non-GAAP Financial Information

This release includes certain financial information not prepared in accordance with U.S. GAAP. Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Management uses Adjusted EBITDA and Free cash flow, non-GAAP financial measures, in order to evaluate historical and ongoing operations. Management believes that these non-GAAP financial measures are useful in order to enable investors to perform meaningful comparisons of historical and current performance. Adjusted EBITDA and Free cash flow are intended to supplement and should be read together with the financial results. Adjusted EBITDA and Free cash flow should not be considered alternatives or substitutes for, and should not be considered superior to, the reported financial results. Accordingly, users of this financial information should not place undue reliance on the non-GAAP financial measures. See the table below for a reconciliation of Net earnings to Adjusted EBITDA and a reconciliation of Cash flow from operations to Free cash flow.

Adjusted EBITDA margin is a non-GAAP financial measure. In calculating adjusted EBITDA, we make certain adjustments, including for share-based compensation expense, net gains or losses on the disposition and impairment of assets, and impairment of intangible assets. The most directly comparable GAAP financial measure is net earnings as a percentage of net sales (net margin). For the six months ended June 27, 2026, our net margin was 4.0 percent, and our adjusted EBITDA margin, calculated as described above, was 7.9 percent. We have not provided a quantitative reconciliation of the forward-looking adjusted EBITDA margin target to the most directly comparable GAAP measure because certain reconciling items and certain discrete tax items cannot be reasonably predicted due to the long-term nature of this target and the inherent variability and uncertainty of such items. These items could individually or in the aggregate be significant to the difference between adjusted EBITDA margin and the comparable GAAP measure.

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND

COMPREHENSIVE INCOME (UNAUDITED)

FOR THE THREE AND SIX MONTHS ENDED

JUNE 2026/2025

Quarter Period

Year to Date

(In thousands, except per share data)

2026

2025

2026

2025

Net sales

$

1,882,937

100.0

%

$

1,835,374

100.0

%

$

3,344,204

100.0

%

$

3,430,893

100.0

%

Cost of sales

1,592,702

84.6

1,522,640

83.0

2,818,080

84.3

2,849,963

83.1

Gross profit

290,235

15.4

312,734

17.0

526,124

15.7

580,930

16.9

Operating expenses

Selling, general and administrative expenses

185,720

9.9

184,995

10.1

358,603

10.7

361,249

10.5

Net loss (gain) on disposition and impairments of

assets

302

—

3,830

0.2

(1,350)

—

3,754

0.1

Other losses, net

797

—

818

—

1,374

—

584

—

Total operating expenses

186,819

9.9

189,643

10.3

358,627

365,587

Earnings from operations

103,416

5.5

123,091

6.7

167,497

5.0

215,343

6.3

Interest and other

(9,446)

(0.5)

(8,854)

(0.5)

(12,309)

(0.4)

(17,283)

(0.5)

Earnings before income taxes

112,862

6.0

131,945

7.2

179,806

5.4

232,626

6.8

Income taxes

29,691

1.6

31,074

1.7

45,538

1.4

52,332

1.5

Net earnings

83,171

4.4

100,871

5.5

134,268

4.0

180,294

5.3

Less net earnings attributable to noncontrolling

interest

(299)

—

(137)

—

(622)

—

(807)

—

Net earnings attributable to controlling interest

$

82,872

4.4

$

100,734

5.5

$

133,646

4.0

$

179,487

5.2

Earnings per share - basic

$

1.48

$

1.70

$

2.38

$

2.99

Earnings per share - diluted

$

1.48

$

1.70

$

2.37

$

2.99

Comprehensive income

$

82,922

$

112,609

$

133,116

$

195,213

Less comprehensive income attributable to

noncontrolling interest

(825)

(1,754)

(1,083)

(2,391)

Comprehensive income attributable to

controlling interest

$

82,097

$

110,855

$

132,033

$

192,822

CONDENSED CONSOLIDATED STATEMENTS

OF EARNINGS BY SEGMENT (UNAUDITED)

FOR THE THREE MONTHS ENDED JUNE 2026/2025

Quarter Period 2026

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net sales

$

818,743

$

458,245

$

526,777

$

76,927

$

2,245

$

1,882,937

Cost of sales

704,096

397,886

436,449

64,058

(9,787)

1,592,702

Gross profit

114,647

60,359

90,328

12,869

12,032

290,235

Selling, general and administrative expenses

62,717

45,580

63,930

10,088

3,405

185,720

Net loss (gain) on disposition and impairments of

assets

1,780

106

37

74

(1,695)

302

Other losses, net

404

—

129

243

21

797

Earnings from operations

49,746

14,673

26,232

2,464

10,301

103,416

Interest and other

(368)

(818)

(397)

(5,413)

(2,450)

(9,446)

Earnings before income taxes

50,114

15,491

26,629

7,877

12,751

112,862

Income taxes

13,096

4,176

6,998

1,663

3,758

29,691

Net earnings

$

37,018

$

11,315

$

19,631

$

6,214

$

8,993

$

83,171

Quarter Period 2025

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net sales

$

788,224

$

428,669

$

551,590

$

65,026

$

1,865

$

1,835,374

Cost of sales

674,484

358,087

451,401

51,789

(13,121)

1,522,640

Gross profit

113,740

70,582

100,189

13,237

14,986

312,734

Selling, general and administrative expenses

58,642

43,148

63,727

10,398

9,080

184,995

Net loss (gain) on disposition and impairments of

assets

1,083

1,225

211

2,616

(1,305)

3,830

Other losses (gains), net

536

—

191

302

(211)

818

Earnings from operations

53,479

26,209

36,060

(79)

7,422

123,091

Interest and other

(54)

(795)

—

(2,512)

(5,493)

(8,854)

Earnings before income taxes

53,533

27,004

36,060

2,433

12,915

131,945

Income taxes

12,405

6,371

8,497

419

3,382

31,074

Net earnings

$

41,128

$

20,633

$

27,563

$

2,014

$

9,533

$

100,871

 CONDENSED CONSOLIDATED STATEMENTS

OF EARNINGS BY SEGMENT (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 2026/2025

Year to Date 2026

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net sales

$

1,349,919

$

852,338

$

992,290

$

145,432

$

4,225

$

3,344,204

Cost of sales

1,154,710

731,631

824,345

120,840

(13,446)

2,818,080

Gross profit

195,209

120,707

167,945

24,592

17,671

526,124

Selling, general and administrative expenses

118,763

90,783

125,756

19,066

4,235

358,603

Net loss (gain) on disposition and impairments of

assets

1,848

(64)

50

75

(3,259)

(1,350)

Other losses, net

459

—

552

349

14

1,374

Earnings from operations

74,139

29,988

41,587

5,102

16,681

167,497

Interest and other

(438)

(778)

(400)

(7,233)

(3,460)

(12,309)

Earnings before income taxes

74,577

30,766

41,987

12,335

20,141

179,806

Income taxes

18,887

7,792

10,633

2,567

5,659

45,538

Net earnings

$

55,690

$

22,974

$

31,354

$

9,768

$

14,482

$

134,268

Year to Date 2025

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net sales

$

1,395,607

$

838,677

$

1,067,530

$

125,324

$

3,755

$

3,430,893

Cost of sales

1,200,572

698,521

876,541

101,455

(27,126)

2,849,963

Gross profit

195,035

140,156

190,989

23,869

30,881

580,930

Selling, general and administrative expenses

113,997

90,917

126,511

18,860

10,964

361,249

Net loss (gain) on disposition and impairments of

assets

1,107

1,257

331

2,616

(1,557)

3,754

Other losses (gains), net

318

—

271

248

(253)

584

Earnings from operations

79,613

47,982

63,876

2,145

21,727

215,343

Interest and other

(114)

(467)

(1)

(3,459)

(13,242)

(17,283)

Earnings before income taxes

79,727

48,449

63,877

5,604

34,969

232,626

Income taxes

17,936

10,899

14,370

1,088

8,039

52,332

Net earnings

$

61,791

$

37,550

$

49,507

$

4,516

$

26,930

$

180,294

RECONCILIATION OF NET EARNINGS TO

ADJUSTED EBITDA BY SEGMENT (UNAUDITED)

FOR THE THREE MONTHS ENDED JUNE 2026/2025

Quarter Period 2026

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net earnings

$

37,018

$

11,315

$

19,631

$

6,214

$

8,993

$

83,171

Interest and other

(368)

(818)

(397)

(5,413)

(2,450)

(9,446)

Income taxes

13,096

4,176

6,998

1,663

3,758

29,691

Expenses associated with share-based compensation

arrangements

1,582

1,745

2,462

117

1,092

6,998

Net loss (gain) on disposition and impairments of

assets

1,780

106

(14)

74

(1,695)

251

Impairment of intangibles

—

—

51

—

—

51

Depreciation expense

9,907

9,308

6,640

853

11,573

38,281

Amortization of intangibles

919

2,101

674

1,673

116

5,483

Adjusted EBITDA

$

63,934

$

27,933

$

36,045

$

5,181

$

21,387

$

154,480

Net earnings as a percentage of net sales

4.5 %

2.5 %

3.7 %

8.1 %

*

4.4 %

Adjusted EBITDA as a percentage of net sales

7.8 %

6.1 %

6.8 %

6.7 %

*

8.2 %

* Not meaningful

Quarter Period 2025

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net earnings

$

41,128

$

20,633

$

27,563

$

2,014

$

9,533

$

100,871

Interest and other

(54)

(795)

—

(2,512)

(5,493)

(8,854)

Income taxes

12,405

6,371

8,497

419

3,382

31,074

Expenses associated with share-based compensation

arrangements

867

1,617

2,175

174

3,976

8,809

Net loss (gain) on disposition and impairments of

assets

1,083

1,225

211

2,616

(1,305)

3,830

Gain from reduction of estimated earnout liability

—

(1,511)

—

—

—

(1,511)

Depreciation expense

7,592

9,090

6,330

1,109

9,879

34,000

Amortization of intangibles

957

2,166

704

1,671

430

5,928

Adjusted EBITDA

$

63,978

$

38,796

$

45,480

$

5,491

$

20,402

$

174,147

Net earnings as a percentage of net sales

5.2 %

4.8 %

5.0 %

3.1 %

*

5.5 %

Adjusted EBITDA as a percentage of net sales

8.1 %

9.1 %

8.2 %

8.4 %

*

9.5 %

* Not meaningful

RECONCILIATION OF NET EARNINGS TO

ADJUSTED EBITDA BY SEGMENT (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 2026/2025

Year to Date 2026

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net earnings

$

55,690

$

22,974

$

31,354

$

9,768

$

14,482

$

134,268

Interest and other

(438)

(778)

(400)

(7,233)

(3,460)

(12,309)

Income taxes

18,887

7,792

10,633

2,567

5,659

45,538

Expenses associated with share-based compensation

arrangements

3,360

3,971

5,332

229

2,578

15,470

Net loss (gain) on disposition and impairments of

assets

1,848

(64)

(1)

75

(3,259)

(1,401)

Impairment of intangibles

—

—

51

—

—

51

Depreciation expense

17,664

17,624

13,414

1,863

22,801

73,366

Amortization of intangibles

1,755

4,204

1,349

3,313

232

10,853

Adjusted EBITDA

$

98,766

$

55,723

$

61,732

$

10,582

$

39,033

$

265,836

Net earnings as a percentage of net sales

4.1 %

2.7 %

3.2 %

6.7 %

*

4.0 %

Adjusted EBITDA as a percentage of net sales

7.3 %

6.5 %

6.2 %

7.3 %

*

7.9 %

* Not meaningful

Year to Date 2025

(In thousands)

Retail

Packaging

Construction

All Other

Corporate

Total

Net earnings

$

61,791

$

37,550

$

49,507

$

4,516

$

26,930

$

180,294

Interest and other

(114)

(467)

(1)

(3,459)

(13,242)

(17,283)

Income taxes

17,936

10,899

14,370

1,088

8,039

52,332

Expenses associated with share-based compensation arrangements

2,291

3,781

5,000

438

8,860

20,370

Net loss (gain) on disposition and impairments of assets

1,107

1,257

331

2,616

(1,557)

3,754

Gain from reduction of estimated earnout liability

—

(1,511)

(344)

—

—

(1,855)

Depreciation expense

14,902

17,987

12,521

2,053

19,478

66,941

Amortization of intangibles

1,914

4,345

1,406

3,272

808

11,745

Adjusted EBITDA

$

99,827

$

73,841

$

82,790

$

10,524

$

49,316

$

316,298

Net earnings as a percentage of net sales

4.4 %

4.5 %

4.6 %

3.6 %

*

5.3 %

Adjusted EBITDA as a percentage of net sales

7.2 %

8.8 %

7.8 %

8.4 %

*

9.2 %

* Not meaningful

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

JUNE 2026/2025

(In thousands)

Assets

2026

2025

Liabilities and equity

2026

2025

Current assets

Current liabilities

Cash and cash equivalents

$

597,263

$

841,930

Accounts payable

$

292,979

$

258,784

Restricted cash

1,604

1,061

Accrued liabilities and other

259,004

257,212

Investments

46,330

32,021

Current portion of debt

5,493

5,122

Accounts receivable

731,092

687,332

Inventories

748,504

722,232

Total current liabilities

557,476

521,118

Other current assets

94,349

82,929

Long-term debt and finance lease

obligations

228,758

229,181

Total current assets

2,219,142

2,367,505

Other liabilities

258,702

173,373

Other assets

323,382

289,347

Temporary equity

485

5,253

Intangible assets, net

481,563

494,495

Property, plant and equipment,

net

1,080,777

946,041

Shareholders' equity

3,059,443

3,168,463

Total assets

$

4,104,864

$

4,097,388

Total liabilities and equity

$

4,104,864

$

4,097,388

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

FOR THE SIX MONTHS ENDED

JUNE 2026/2025

(In thousands)

2026

2025

Cash flows from operating activities:

Net earnings

$

134,268

$

180,294

Adjustments to reconcile net earnings to net cash from operating activities:

Depreciation

73,366

66,941

Amortization of intangibles

10,853

11,745

Expense associated with share-based and grant compensation arrangements

15,470

20,370

Deferred income taxes

(2,443)

(226)

Unrealized gain on investment and other

(4,036)

(654)

Impairment of investments

4,000

—

Equity in earnings of investee

(979)

(794)

Net (gain) loss on sale, disposition and impairment of assets

(1,401)

3,754

Impairment of intangibles

51

—

Gain from reduction of estimated earnout liability

—

(1,855)

Changes in:

Accounts receivable

(245,592)

(184,404)

Inventories

(2,324)

2,461

Accounts payable

86,514

32,887

Accrued liabilities and other

(7,102)

(17,381)

Net cash from operating activities

60,645

113,138

Cash flows used in investing activities:

Capital expenditures

(86,576)

(129,752)

Proceeds from sale of property, plant and equipment

11,711

3,694

Acquisitions and purchases of non-controlling interest, net of cash received

(122,008)

(15,706)

Purchases of investments

(19,825)

(16,873)

Proceeds from sale of investments

10,801

7,467

Other

1,862

1,591

Net cash used in investing activities

(204,035)

(149,579)

Cash flows used in financing activities:

Borrowings under revolving credit facilities

23,703

13,357

Repayments under revolving credit facilities

(19,033)

(12,814)

Contingent consideration payments and other

(1,939)

(221)

Proceeds from issuance of common stock

1,241

1,294

Dividends paid to shareholders

(40,390)

(41,978)

Distributions to noncontrolling interest

(1,082)

(285)

Purchase of remaining noncontrolling interest of subsidiary

(3,937)

—

Payments to taxing authorities in connection with shares directly withheld from employees

(1,391)

(9,560)

Repurchase of common stock

(140,457)

(251,933)

Other

52

(198)

Net cash used in financing activities

(183,233)

(302,338)

Effect of exchange rate changes on cash

419

2,176

Net change in cash and cash equivalents

(326,204)

(336,603)

All cash and cash equivalents, beginning of period

925,071

1,179,594

All cash and cash equivalents, end of period

$

598,867

$

842,991

Reconciliation of cash and cash equivalents and restricted cash:

Cash and cash equivalents, beginning of period

$

914,199

$

1,171,828

Restricted cash, beginning of period

10,872

7,766

All cash and cash equivalents, beginning of period

$

925,071

$

1,179,594

Cash and cash equivalents, end of period

$

597,263

$

841,930

Restricted cash, end of period

1,604

1,061

All cash and cash equivalents, end of period

$

598,867

$

842,991

RECONCILIATION OF NET CASH FROM OPERATING

ACTIVITIES TO FREE CASH FLOW (UNAUDITED)

FOR THE SIX MONTHS ENDED JUNE 2026/2025

(In thousands)

2026

2025

Net cash from operating activities

$

60,645

$

113,138

Increase in investment in net working capital

168,504

166,437

Maintenance capital expenditures(1)

(34,640)

(47,622)

Interest expense, net of taxes

3,458

4,173

Free cash flow

$

197,967

$

236,126

(1) Breakdown of Capital expenditures from the condensed consolidated statements of cash flows:

   Maintenance capital expenditures

$

34,640

$

47,622

   Expansionary and efficiency capital expenditures

51,936

82,130

   Total Capital expenditures

$

86,576

$

129,752

SOURCE UFP Industries, Inc.

The Ensign Group NASDAQ: ENSG raised its 2026 earnings and revenue outlook after reporting second-quarter gains in revenue, earnings and occupancy, while highlighting continued acquisition activity and clinical quality measures across its skilled nursing portfolio.

For the second quarter, the company reported GAAP diluted earnings per share of $1.68, up 16.7% from a year earlier. Adjusted diluted earnings per share increased 20.8% to $1.92. Consolidated GAAP revenue and adjusted revenue each rose 17.3% to $1.4 billion, while GAAP net income increased 18.2% to $99.7 million. Adjusted net income grew 22.5% to $114.3 million.

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Higher 2026 Outlook Chief Executive Officer Barry Port said the company increased its full-year 2026 diluted earnings guidance to $7.75 to $7.85 per share, from prior guidance of $7.48 to $7.62 per share. Ensign also raised its annual revenue forecast to between $5.87 billion and $5.92 billion, compared with its earlier outlook of $5.81 billion to $5.86 billion.

Port said the midpoint of the revised earnings outlook would represent growth of 18.7% over 2025 and 41.8% over 2024. CFO Suzanne Snapper said the guidance incorporates acquisitions completed and expected to close during the third quarter, as well as management’s expectations for reimbursement rates.

Snapper said the company ended June with $262.3 million in cash and cash equivalents and generated $272.1 million in operating cash flow. Ensign spent more than $460 million during the first half of 2026 on its growth strategy, while its lease-adjusted net debt-to-EBITDA ratio stood at 2 times. The company had more than $592 million available under its credit line, giving it more than $850 million of available liquidity when combined with cash on hand.

The company paid a quarterly cash dividend of 6.5 cents per common share and said it has raised its annual dividend for 23 consecutive years.

Occupancy, Skilled Mix and Quality Measures Port said same-store occupancy was 84.1% in the second quarter, while transitioning facilities had occupancy of 84.7%. Combined same-store and transitioning-facility revenue increased 10.7% year over year, while days increased 6.7%.

Managed care revenue rose 6.1% for same-store operations and 16.2% for transitioning operations. Skilled-mix days increased 6.2% and 9.4%, respectively, from the second quarter of 2025.

The company said more than 80% of its skilled nursing operations had four- or five-star CMS quality-measure ratings at quarter-end. Port said Ensign’s same-store facilities recorded quality-measure ratings 23% above averages in the states where it operates. He also said Cycle 1 inspection results were 18% better than state averages and 26% better than county averages.

According to Port, Ensign’s rehospitalization rates and long-stay emergency department visit rates were better than national averages by 15% and 24%, respectively. The company said it had no CMS Special Focus Facilities among its affiliated operations.

During the question-and-answer session, President and COO Spencer Burton said CMS methodology changes to five-star ratings are expected to affect the company, but preliminary analysis suggests the impact could be less severe than industry expectations. Burton said improvements in other rating areas may offset some changes, and the net effect on Ensign’s overall five-star ratings “is actually looking to not be that much.”

Reserve Turnaround Highlights Clinical Model Burton highlighted The Reserve, a 135-bed skilled nursing operation in the Charleston, South Carolina, area that Ensign acquired in 2023 while it was under state conservatorship and designated as a CMS Special Focus Facility.

Prior to the transition, the facility had received a Cycle 1 survey score of 500 points, which Burton said was more than 900% worse than the South Carolina average. The operation had low occupancy, staffing shortages, contract labor use and limited ability to accept admissions.

Burton said The Reserve exited the Special Focus Facility program six months after the acquisition and has since recorded three consecutive deficiency-free health inspections. It now has a five-star CMS overall rating and five-star quality-measure rating, according to the company.

The facility reached 100% occupancy during the second quarter and averaged 92% occupancy for the period, compared with 83% in the prior-year quarter. Skilled days rose 39%, managed care revenue increased 69%, total revenue rose 18% and EBIT increased 97% from a year earlier, Burton said.

Acquisitions Expand Texas Presence Chief Investment Officer Chad Keetch said Ensign added 20 operations during and after the quarter, all including real estate assets. The purchases brought the number of operations acquired during 2025 and since to 71.

The latest additions included 19 operations in Texas and one in Iowa, adding 2,392 skilled nursing beds, 100 senior living beds and 55 independent living beds. Keetch said recently acquired operations now account for 18% of the company’s portfolio.

He described the Texas properties as newly constructed, high-quality facilities in growing metropolitan markets, but said they generally have below-average occupancy for their geographies and face clinical and operational challenges. The facilities are not currently accretive, Port said, and may take time to generate expected returns.

Keetch said the company reviewed more than 350 acquisition opportunities within its markets so far this year and completed 25 transactions. He said leadership planning remains a central consideration in acquisition decisions, with Ensign sometimes retaining existing administrators and other times installing experienced leaders or graduates of its administrator-in-training program.

Standard Bearer Healthcare REIT added 23 assets during and after the quarter, including two senior living communities in Wisconsin and a memory-care facility in California that will be operated by third parties under triple-net leases. The REIT owned 177 properties at quarter-end, including 140 leased to Ensign-affiliated operators and 38 leased to third-party operators.

Standard Bearer generated $44.1 million in rental revenue during the quarter, including $37.8 million from Ensign-affiliated operations, and reported $24.7 million in funds from operations. Its EBITDA-to-rent coverage ratio was 2.4 times at quarter-end.

About The Ensign Group (NASDAQ:ENSG)The Ensign Group, Inc is a diversified provider of post-acute healthcare services in the United States, operating a network of skilled nursing, assisted living, independent living, home health and hospice care centers. The company's model emphasizes integrated care by employing multidisciplinary teams—including nursing staff, therapists and physicians—to deliver personalized rehabilitation and long-term care services for seniors and other patients recovering from injury, illness or surgery.

Through its owned and managed centers, The Ensign Group offers a broad spectrum of rehabilitation services such as physical, occupational and speech therapy.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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July 29, 2026 16:15 ET  | Source: California Water Service Group

SAN JOSE, Calif., July 29, 2026 (GLOBE NEWSWIRE) -- At its meeting on July 29, 2026, the California Water Service Group (NYSE: CWT) Board of Directors declared the Company’s 326th consecutive quarterly dividend in the amount of $0.3350 per common share, payable on August 21, 2026, to stockholders of record as of the close of business on August 10, 2026.

About California Water Service Group

California Water Service Group is the largest regulated water utility in the western United States. It provides high-quality, reliable water and/or wastewater services to more than 2.2 million people in California, Hawaii, New Mexico, Washington, and Texas through its regulated subsidiaries, California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, and its utility holding company, Texas Water Service. This year, the Company commemorates a century of service.

Group’s purpose is to enhance the quality of life for customers, communities, employees, and stockholders. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The Company’s nearly 1,300 employees live by a set of strong core values and share a commitment to protecting the planet, caring for people, and operating with the utmost integrity. The Company has been named one of “America’s Most Responsible Companies” and the “World’s Most Trustworthy Companies” by Newsweek, a USA Top Workplace, and a Great Place to Work®.  More information is available at www.calwatergroup.com.

Forward Looking Statements

This news release contains forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995 (“PSLRA”). The forward-looking statements are intended to qualify under provisions of the federal securities laws for “safe harbor” treatment established by the PSLRA. Forward-looking statements in this news release are based on currently available information, expectations, estimates, assumptions and projections, and our management’s beliefs, assumptions, judgments and expectations about us, the water utility industry and general economic conditions. These statements are not statements of historical fact. When used in our documents, statements that are not historical in nature, including words like will, would, expects, intends, plans, believes, may, could, estimates, assumes, anticipates, projects, progress, predicts, hopes, targets, forecasts, should, seeks or variations of these words or similar expressions, are intended to identify forward-looking statements. Examples of forward-looking statements in this news release include, but are not limited to, statements describing the expected timing of the quarterly dividend payment. Forward-looking statements are not guarantees of future performance. They are based on numerous assumptions that we believe are reasonable, but they are open to a wide range of uncertainties and business risks. Consequently, actual results or outcomes may vary materially from what is contained in a forward-looking statement. Factors that may cause actual results or outcomes to be different than those expected or anticipated include, but are not limited to, those described under the section entitled “Risk Factors” and elsewhere in our most recent Annual Report on Form 10-K, our subsequent Quarterly Reports on Form 10-Q, and our other Securities and Exchange Commission filings. In light of these risks, uncertainties, and assumptions, investors are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this news release. We are not under any obligation, and we expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events, or otherwise.

CONTACT: Shannon Dean, [email protected], (408) 367-8243
                   Jim Lynch, (408) 367-8200

- Loan Originations of $1.6 Billion -
- Net Income of $2.1 Million -
- Diluted Earnings Per Share of $0.15 -

MURRAY, Utah, July 29, 2026 (GLOBE NEWSWIRE) -- FinWise Bancorp (NASDAQ: FINW) (“FinWise”, the “Company”, “we”, “our”, or “us”), parent company of FinWise Bank (the “Bank”), today announced results for the quarter ended June 30, 2026.

Second Quarter 2026 Highlights

Loan originations totaled $1.6 billion, compared to $1.7 billion for the quarter ended March 31, 2026, and $1.5 billion for the second quarter of the prior yearNet interest income was $28.7 million, compared to $28.1 million for the quarter ended March 31, 2026, and $14.7 million for the second quarter of the prior yearNet income was $2.1 million, compared to $2.7 million for the quarter ended March 31, 2026, and $4.1 million for the second quarter of the prior yearDiluted earnings per share (“EPS”) were $0.15 for the quarter, compared to $0.20 for the quarter ended March 31, 2026, and $0.29 for the second quarter of the prior yearEfficiency ratio1 was 53.1%, compared to 66.3% for the quarter ended March 31, 2026, and 59.5% for the second quarter of the prior yearNonperforming loan balances were $37.7 million as of June 30, 2026, compared to $49.8 million as of March 31, 2026, and $39.7 million as of June 30, 2025. Nonperforming loan balances guaranteed by the Small Business Administration (“SBA”) were $19.0 million, $26.7 million, and $21.2 million as of June 30, 2026, March 31, 2026, and June 30, 2025, respectively “Our second quarter earnings of $0.15 per share were short of our expectations driven by higher provision expense on the loans where we retain credit risk. The higher provision resulted primarily from losses incurred on sale of property collateralizing, and increased reserves on, classified loans. We will continue to empower our credit and compliance teams to identify and prune risk proactively as they did this quarter, reducing our non-performing loan balance by $12.1 million from $49.8 million last quarter to $37.7 million this quarter,” said Jim Noone, CEO of FinWise Bancorp.

"While we are actively managing risk in the portfolio, the business continues to make solid progress. We delivered $1.6 billion in originations from an increasingly diversified partner base. Tangible book value per share grew to $14.55 and we signed a new strategic program with a well-established prepaid card provider that will use a combination of our BIN Sponsorship and MoneyRails services. Our sales pipeline today is materially stronger, and potentially more meaningful to our bottom line. And our recently announced acquisition of the Tallied Technologies platform makes FinWise more competitive for new partners that require a broad product offering. Taken together, FinWise remains well-positioned for sustained growth and firmly focused on translating that strength and momentum into lasting value for our shareholders.”

________________________
1 See “Reconciliation of GAAP to Non-GAAP Financial Measures” for a reconciliation of this non-GAAP measure.

Selected Financial and Other Data

 As of and for the Three Months Ended($ in thousands, except per share amounts)6/30/2026 3/31/2026 6/30/2025Amount of loans originated$1,629,920  $1,745,428  $1,483,179 Provision for credit losses, net of provision for credit-enhanced Strategic Program loans(1)$5,999  $4,717  $2,451 Net income$2,132  $2,735  $4,097 Diluted EPS(2)$0.15  $0.20  $0.29 Return on average assets(3) 0.9%  1.2%  2.0%Return on average equity(3) 4.3%  5.7%  9.2%Yield on loans 18.53%  18.04%  11.70%Cost of interest-bearing deposits 3.83%  3.91%  4.07%Net interest margin 13.69%  12.90%  7.81%Efficiency ratio(4) 53.1%  66.3%  59.5%Tangible book value per share(5)$14.55  $14.34  $13.51 Tangible shareholders’ equity to tangible assets(5) 21.5%  21.9%  21.6%Leverage ratio (Bank under CBLR) 18.1%  16.8%  18.0%Full-time equivalent employees 206   210   200  (1)Represents a non-GAAP financial measure calculated as the total provision for credit losses less the provision attributable to Strategic Program loans with credit enhancement. This non-GAAP measure reflects the portion of credit loss provision that is not covered by strategic partners with credit enhancement and therefore represents the Company’s provision expense for the credit exposure retained by the Company. See “Reconciliation of GAAP to Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.(2)FinWise uses the two-class method to calculate basic and diluted EPS as restricted stock awards are considered participating securities due to the dividend rights associated with those awards. Effective December 31, 2025, executive management elected to waive the dividend rights on their unvested restricted stock awards, and this waiver extends to restricted stock awards granted in 2026 to directors and various other employees. As a result, these unvested shares are no longer treated as participating securities and are excluded from the two-class method calculation of EPS. The impact on basic and diluted earnings per share was de minimis, and previously reported periods are not affected.(3)Annualized for the respective three-month periods.(4)Efficiency ratio is a non-GAAP financial measure. The efficiency ratio is defined as total non-interest expense divided by the sum of net interest income and non-interest income. The Company believes this measure is important as an indicator of productivity because it shows the amount of revenue generated for each dollar spent. See “Reconciliation of GAAP to Non-GAAP Financial Measures” for a reconciliation of this measure to its most comparable GAAP measure.(5)Tangible shareholders’ equity to tangible assets is a non-GAAP financial measure. Tangible shareholders’ equity is defined as total shareholders’ equity less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholder’s equity to total assets. The Company had no goodwill or other intangible assets at the end of any period indicated. The Company has not considered loan servicing rights or loan trailing fee assets as intangible assets for purposes of this calculation. As a result, tangible shareholders’ equity is the same as total shareholders’ equity at the end of each of the periods indicated.   Loan Originations
Loan originations totaled $1.6 billion for the second quarter of 2026, a decrease from the $1.7 billion recorded in the prior quarter and an increase from the $1.5 billion recorded in the prior year period. The quarter-over-quarter decrease was primarily driven by seasonally lower origination volume in the student loan program, partially offset by continued growth in several of the Company's other established programs. The year-over-year increase was primarily driven by this same growth across established programs. Consistent with the change in originations, average balances of loans held for sale and held for investment decreased slightly compared to the prior quarter, but increased compared to the prior-year period.

Net Interest Income and Net Interest Margin
Net interest income was $28.7 million for the second quarter of 2026, compared to $28.1 million for the prior quarter and $14.7 million for the prior year period. The increase from the prior quarter was primarily due to growth in the credit-enhanced loan portfolio and a decrease in the migration of performing loans to nonperforming loans, which resulted in a lower reversal of interest on nonaccrual loans and contributed to an increase in the average yield on loans held-for-investment. These increases were partially offset by a decline in average balances within held for investment portfolio. The increase from the prior year period was primarily due to the increase in the credit enhanced loans and a change in estimate, based on additional information and experience, on the allocation of interest received on credit enhanced loans in excess of the amount FinWise retains. FinWise now estimates that all excess interest is attributable to servicing and credit guarantee expense, whereas in the prior year it had been estimated that a portion was attributable to origination costs, or finders' fees, and was reported in net interest income.

Net interest margin for the second quarter of 2026 was 13.69%, compared to 12.90% for the prior quarter and 7.81% for the prior year period. The increase in net interest margin from the prior quarter results from the growth in the credit-enhanced loan portfolio, a decrease in nonaccrual loans, and a decrease in average interest-bearing liabilities. The increase in net interest margin from the prior-year period results from growth in the higher yielding credit-enhanced portfolio average balance and higher yields on loans held for investment, the change in estimated allocation of excess interest as previously described, and slightly lower rates paid on deposits. 

Provision for Credit Losses

 Three Months Ended($ in thousands)6/30/2026
 3/31/2026
 6/30/2025Provision for credit losses:       Strategic Program loans - with credit enhancement(1)$16,678  $5,864  $2,275 Strategic Program loans - without credit enhancement 1,995   1,886   2,212 All other loans (core portfolio) 3,880   2,816   309 Provision for credit losses on loans 22,553   10,566   4,796 Provision for unfunded commitments 124   15   (70)Total provision for credit losses$22,677  $10,581  $4,726  (1)For credit enhanced loans, fintech partners are required to maintain a deposit account at FinWise, which is used to recover charge-offs. The provision for credit losses on these loans differs from the core portfolio, as it is fully offset by expected recoveries under the partner guarantee, which is recognized as credit enhancement income in non-interest income.   The Company’s provision for credit losses was $22.7 million for the second quarter of 2026, compared to $10.6 million for the prior quarter and $4.7 million for the prior year period. The increase from the prior quarter was primarily due to growth in the credit-enhanced loan programs and increased provisioning in the core loan portfolio as the Company recognized losses in liquidating, and increased reserves on, non-performing loans and classified other loans. The Company has also adopted more conservative servicing and administrative standards for the SBA and commercial real estate products specific to those characteristics identified as common to many of the loans migrating to non-performing status over the past 18 months. This change has accelerated the classification of nonperforming loans and provisioning for loans with those identified characteristics. The year-over-year increase in the Strategic Program loans with credit enhancement provision was primarily related to growth in the credit-enhanced portfolio.

Non-interest Income

 Three Months Ended($ in thousands)6/30/2026 3/31/2026 6/30/2025Non-interest income     Strategic Program fees$5,310  $5,702  $5,404 Gain on sale of loans 1,480   1,452   1,483 SBA loan servicing fees, net 80   158   (96)Change in fair value on investment in BFG (200)  (200)  300 Interchange income 679   703   — Credit enhancement income 16,678   5,864   2,275 Other miscellaneous income 1,567   948   971 Total non-interest income$25,594  $14,627  $10,337 
The increase in non-interest income from the prior quarter was primarily due to an increase in credit enhancement income, which corresponds to the provision for credit losses on credit-enhanced loans and increased for the quarter ended June 30, 2026. In addition, the Company prevailed in litigation with an offboarded strategic partner, which resulted in an increase in miscellaneous income of $0.5 million.

The increase in non-interest income compared to the prior-year period was primarily due to an increase in credit enhancement income, driven by growth in credit-enhanced loan balances. The increase was also attributable to interchange income, a new revenue stream during the period, as well as the increase in other miscellaneous income as previously described. These increases were partially offset by a decrease in BFG investment fair value.

Non-interest Expense

 Three Months Ended
($ in thousands)6/30/2026
 3/31/2026
 6/30/2025
Non-interest expense        Salaries and employee benefits$11,062  $11,038  $10,491 Professional services 1,146   880   949 Occupancy and equipment expenses 417   425   445 Credit enhancement servicing expense 1,512   2,429   11 Credit enhancement guarantee expense 11,774   10,098   78 Other operating expenses 2,951   3,468   2,938 Total non-interest expense$28,862  $28,338  $14,912 
The increase in non-interest expense from the prior quarter resulted primarily from increases in credit enhancement guarantee and servicing expenses largely resulting from an increase in interest income attributable to the credit enhanced loan portfolio. Excluding the credit enhancement related expenses, non-interest expense declined $0.2 million.

The increase in non-interest expense from the prior year period was primarily due to an increase in credit enhancement guarantee and servicing expenses resulting from growth in credit enhanced loans and salaries and employee benefits principally from increased headcount.

FinWise’s efficiency ratio was 53.1% for the second quarter, compared to 66.3% for the prior quarter and 59.5% for the prior year period. We expect the efficiency ratio to continue to improve as we realize increased revenues from interest earned on our growing credit enhanced loan balances.

Tax Rate
The Company’s effective tax rate was 24.0% for the second quarter of 2026, compared to 28.0% for the prior quarter and 24.5% for the prior year period. The decrease from the prior quarter and prior year period was principally due to the apportionment of income between states with various tax rates.

Net Income
Net income was $2.1 million for the second quarter of 2026, compared to $2.7 million for the prior quarter and $4.1 million for the prior year period. The changes in net income for the three months ended June 30, 2026 compared to the prior quarter and prior year period are generally the result of the factors discussed in the foregoing sections.

Balance Sheet
The Company’s total assets were $925.3 million as of June 30, 2026, an increase from $899.4 million as of March 31, 2026 and an increase from $842.5 million as of June 30, 2025. The increase in total assets from March 31, 2026 was primarily due to increases in the Company’s credit enhancement loans of $11.7 million, credit enhancement asset of $8.5 million, and loans held-for-sale portfolio of $41.3 million. These increases were offset in part by a decrease in loans held-for-investment (excluding the credit enhanced loans) of $26.9 million and an increase in the allowance for credit loss of $9.5 million. The increase in total assets compared to June 30, 2025 was primarily due to increases in the Company’s credit enhancement loans of $109.1 million, credit enhancement asset of $29.4 million, and loans held-for-sale portfolio of $27.9 million. These increases were offset in part by a decrease in loans held-for-investment (excluding the credit enhanced loans) of $69.9 million and an increase in the allowance for credit losses of $31.2 million.

The following table provides the composition and gross balances of loans held-for-investment (“HFI”) as of the dates indicated:

 6/30/2026 3/31/2026 6/30/2025($ in thousands)Amount % of total loans Amount % of total loans Amount % of total loansSBA$163,953 28.7% $202,438 34.6% $246,903 46.6%Commercial leases 83,077 14.5%  78,913 13.5%  88,957 16.8%Commercial, non-real estate 3,497 0.6%  3,877 0.7%  5,510 1.0%Residential real estate 70,482 12.3%  62,464 10.7%  54,132 10.2%Strategic Program loans:           Strategic Program loans - with credit enhancement 120,787 21.1%  109,081 18.7%  11,730 2.2%Strategic Program loans - without credit enhancement 23,851 4.2%  20,779 3.6%  18,969 3.6%Commercial real estate:           Owner occupied 86,619 15.2%  86,083 14.7%  77,871 14.7%Non-owner occupied 2,108 0.4%  2,003 0.3%  1,417 0.3%Consumer 17,012 3.0%  18,599 3.2%  24,555 4.6%Total period end loans$571,386 100.0% $584,237 100.0% $530,044 100.0%
Note: SBA loans as of June 30, 2026, March 31, 2026 and June 30, 2025 include $66.1 million, $95.1 million and $144.3 million, respectively, of SBA 7(a) loan balances that are guaranteed by the SBA.

Total gross loans HFI as of June 30, 2026 decreased $12.9 million and increased $41.3 million compared to March 31, 2026 and June 30, 2025, respectively. The declines in the SBA portfolio resulted primarily from sales of the guaranteed portions of SBA 7(a) loans and increased charge-offs, reflecting ongoing portfolio and credit risk management. The credit enhanced portfolio of the Strategic Program loans as of June 30, 2026 increased $11.7 million and $109.1 million compared to March 31, 2026 and June 30, 2025, respectively, reflecting our 2025 strategic initiative to develop the credit enhanced portfolio.

The following table presents the Company’s deposit composition as of the dates indicated:

​6/30/2026 3/31/2026 6/30/2025($ in thousands)Amount Percent Amount Percent Amount PercentNoninterest-bearing demand deposits$118,926 17.1% $127,223 18.9% $120,747 19.0%Interest-bearing deposits:           Demand 106,833 15.4%  104,016 15.4%  67,890 10.7%Savings 7,968 1.1%  9,613 1.4%  11,623 1.8%Money market 21,969 3.2%  23,286 3.4%  21,083 3.3%Time certificates of deposit 438,103 63.2%  410,718 60.9%  413,831 65.2%Total period end deposits$693,799 100.0% $674,856 100.0% $635,174 100.0%
The increase in total deposits as of June 30, 2026 from March 31, 2026 was primarily due to growth in interest-bearing demand deposits and time certificates of deposit, partially offset by a decrease in noninterest-bearing demand deposits, reflecting a shift in customer/partner balances toward interest-bearing products. Time certificates of deposit balances grew primarily during the latter part of the second quarter, which contributed to the period-end increase, while average time certificates of deposit balances for the quarter declined compared to the prior quarter, as reflected in the average balance table. The increase in total deposits as of June 30, 2026 from June 30, 2025 was primarily driven by growth in interest-bearing demand deposits and time certificates of deposit, which were utilized to fund loan growth and enhance the Company's liquidity profile.

Total shareholders’ equity as of June 30, 2026 increased $2.6 million to $199.2 million from $196.6 million at March 31, 2026. Compared to June 30, 2025, total shareholders’ equity increased by $17.2 million from $182.0 million. The increases from March 31, 2026 and June 30, 2025 were primarily due to net income generated throughout the respective periods.

Bank Regulatory Capital Ratios
The following table presents the leverage ratios for the Bank as of the dates indicated as determined under the Community Bank Leverage Ratio Framework of the Federal Deposit Insurance Corporation:

 As of  Capital Ratios6/30/2026 3/31/2026 6/30/2025 Well-Capitalized RequirementLeverage ratio18.1% 16.8% 18.0% 9.0%

The increase in the leverage ratio from the prior quarter was primarily due to growth in capital from earnings exceeding the relative growth in average asset balances. The slight increase from the prior year period resulted primarily from growth in capital from earnings exceeding the relative growth in the loan portfolio and average assets. The Bank’s capital levels as of June 30, 2026 remain sufficiently above the regulatory well-capitalized guidelines as of June 30, 2026.

Share Repurchase Program
As of June 30, 2026, the Company has repurchased a total of 29,736 shares for $0.4 million under the Company’s share repurchase program announced in May 2026, which provides for the purchase of up to 685,000 of the Company’s issued and outstanding shares, from time to time, on or before the program's expiration date, in the open market, in privately-negotiated transactions, or otherwise, subject to applicable laws and regulations.

Asset Quality
The recorded balances of nonperforming loans were $37.7 million, or 6.6% of total loans held-for-investment, as of June 30, 2026, compared to $49.8 million, or 8.5% of total loans held-for-investment, as of March 31, 2026 and $39.7 million, or 7.5% of total loans held-for-investment, as of June 30, 2025. The balances of nonperforming loans guaranteed by the SBA were $19.0 million, $26.7 million, and $21.2 million as of June 30, 2026, March 31, 2026 and June 30, 2025, respectively. The decrease in nonperforming loans from the prior quarter and prior year period was primarily attributable to an increase in the sales of real property collateralizing the nonperforming SBA 7(a) and commercial real estate and the resulting paydown of the loan balance. The Company’s allowance for credit losses to total loans held-for-investment was 8.3% as of June 30, 2026 compared to 6.5% as of March 31, 2026 and 3.1% as of June 30, 2025. The increase in the ratio from the prior quarter and prior year period was primarily due to the provision for credit losses related to the growth of the credit enhanced loan balances.

The Company’s net charge-offs were $13.1 million, $9.4 million and $2.8 million for the three months ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. The increase in net charge-offs from the prior quarter and the second quarter of 2025 resulted primarily from higher net charge-offs associated with credit enhanced strategic program loans as that program increased in size and matured. FinWise is reimbursed in full for the losses on the credit enhanced loan portfolio. Charge-offs for the traditional bank portfolio totaled $3.3 million in the second quarter compared to $2.3 million in the prior quarter and $0.9 million in the second quarter of 2025. Charge-offs increased compared to the prior quarter and year reflecting resolution of specific loans, particularly in the strategic programs loans that are credit enhanced and the retained portion of the SBA 7(a) loans.

The following table presents a summary of changes in the allowance for credit losses and credit quality data for the periods indicated:

 Three Months Ended($ in thousands)6/30/2026 3/31/2026 6/30/2025Allowance for credit losses:     Beginning balance$37,973  $36,796  $14,235 Provision for credit losses(1) 22,553   10,566   4,796 Charge-offs     Construction and land development —   —   — Residential real estate (153)  (244)  (210)Residential real estate multifamily —   —   — Commercial real estate:     Owner occupied (2,258)  (598)  (309)Non-owner occupied (47)  (410)  — Commercial and industrial (763)  (447)  — Consumer (13)  (276)  (210)Lease financing receivables (99)  (319)  (133)Strategic Program loans:     — Strategic Program loans - with credit enhancement (7,963)  (4,864)  — Strategic Program loans - without credit enhancement (2,679)  (2,720)  (2,279)Recoveries     Construction and land development —   —   — Residential real estate 4   —   3 Residential real estate multifamily —   —   — Commercial real estate:     Owner occupied 333   —   19 Non-owner occupied —   —   — Commercial and industrial 33   5   — Consumer 7   2   7 Lease financing receivables 21   42   7 Strategic Program loans(2) 486   440   321 Ending Balance$47,435  $37,973  $16,247       Credit Quality DataAs of and For the Three Months Ended($ in thousands)6/30/2026 3/31/2026 6/30/2025Nonperforming loans:     Guaranteed$18,982  $26,672  $21,178 Unguaranteed 18,669   23,171   18,561 Total nonperforming loans$37,651  $49,843  $39,739 Allowance for credit losses$47,435  $37,973  $16,247 Net charge-offs:     Core portfolio$2,935  $2,245  $826 Strategic Program loans - with credit enhancement(2) 7,878   4,832   — Strategic Program loans - without credit enhancement 2,278   2,312   1,958 Total net charge-offs$13,091  $9,389  $2,784 Total gross loans held-for-investment$571,386  $584,237  $530,043 Total net loans held-for-investment less guaranteed balances$505,273  $489,096  $385,792 Average loans held-for-investment$590,443  $596,385  $514,222 Nonperforming loans to total loans held-for-investment 6.6%  8.5%  7.5%Unguaranteed nonperforming loans to total loans held-for-investment 3.3%  4.0%  3.5%Net charge-offs to average loans held-for-investment (annualized) 8.9%  6.4%  2.2%Allowance for credit losses to loans held-for-investment 8.3%  6.5%  3.1%Allowance for credit losses to loans held-for-investment less guaranteed balances 9.4%  7.8%  4.2% (1)Excludes the provision for unfunded commitments.(2)Recoveries related to Strategic Program loans that were reimbursed fully on the credit enhanced portfolio totaled $8.2 million, 4.9 million and $1.0 thousand for the three months ended June 30, 2026, March 31, 2026 and June 30, 2025, respectively.
Recent Acquisition
On July 20, 2026, the Company acquired the technology platform and related assets of Tallied Technologies, Inc., the credit card issuance and processing platform that has powered the Bank's co-branded credit card programs. With this acquisition, the Company now owns its card technology stack end-to-end, from application, through issuing, processing and servicing. FinWise expects integration and transition costs of approximately $4.0 million in total over the next year (amount excludes amortization of acquired assets) with costs tapering over the period. The transaction results in the credit card receivable being reclassified from credit enhancement assets to credit card loan receivable beginning in the third quarter of 2026 as FinWise retains the credit risk while capturing additional interchange and fees subsequent to the transaction.

Webcast and Conference Call Information
FinWise will host a conference call today at 5:00 PM ET to discuss its financial results for the second quarter of 2026. A simultaneous audio webcast of the conference call will be available at https://investors.finwisebancorp.com/.

The dial-in number for the conference call is (877) 423-9813 (toll-free) or (201) 689-8573 (international). The conference ID is 13760730. Please dial the number 10 minutes prior to the scheduled start time.

A webcast replay of the call will be available at investors.finwisebancorp.com for six months following the call.

About FinWise Bancorp
FinWise Bancorp is a Utah bank holding company headquartered in Murray, Utah which wholly owns FinWise Bank, a Utah chartered state bank, and FinWise Investment LLC (together “FinWise”). FinWise provides Banking and Payments solutions to fintech brands. FinWise’s existing Strategic Program Lending business, conducted through scalable API-driven infrastructure, powers deposit, lending and payments programs for leading fintech brands. As part of Strategic Program Lending, FinWise also provides a Credit Enhanced Balance Sheet Program, which addresses the challenges that lending and card programs face diversifying their funding sources and managing capital efficiency. In addition, FinWise manages other Lending programs such as SBA 7(a), Owner Occupied Commercial Real Estate, and Leasing, which provide flexibility for disciplined balance sheet growth. FinWise is also expanding and diversifying its business model by incorporating Payments (MoneyRails™) and BIN Sponsorship offerings. Through its compliance oversight and risk management-first culture, FinWise is well positioned to guide fintechs through a rigorous process to facilitate regulatory compliance. For more information about FinWise visit https://investors.finwisebancorp.com.

We periodically provide information for investors on our corporate website, finwisebancorp.com, and our investor relations website, investors.finwisebancorp.com. This includes press releases and other information about financial performance, reports filed or furnished with the SEC, information on corporate governance, and details related to our annual meeting of shareholders.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995
This release may contain forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect the Company’s current views with respect to, among other things, the Company’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. These statements are often, but not always, made through the use of words or phrases such as “may,” “should,” “could,” “predict,” “believe,” “expect,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “project,” “projection,” “forecast,” “budget,” “goal,” “target,” “would,” “aim” and “outlook,” or similar expressions generally indicate a forward-looking statement.

These forward-looking statements are based on management assumptions and involve risks and uncertainties that are subject to change based on various important factors, some of which are beyond the Company’s control. Numerous competitive, economic, regulatory, legal and technological events and factors, among others, could cause the Company’s actual results to differ materially from those indicated in these forward-looking statements, including: the success of the financial technology and banking-as-a-service industries, as well as the continued evolution of the regulation of these industries; the Company’s ability to maintain and grow its relationships with its service providers and reliance on such providers to comply with regulatory regimes; the Company’s ability to keep pace with rapid technological changes in the industry or implement new technology effectively, in particular the recent advancements in artificial intelligence and the risks that such technology presents; ability to effectively manage and remediate system failure or cybersecurity breaches of the Company’s network security; the Company’s ability to measure and manage its credit risk effectively and any deterioration of the business and economic conditions in the Company’s primary market areas; the adequacy of the Company’s allowance for credit losses; changes in Small Business Administration rules, regulations and loan products and the existing regulatory framework for brokered deposits; higher inflation and its impacts; the effects of changes in U.S. trade policies, including the imposition of tariffs and retaliatory tariffs on its trading partners; the value of collateral securing the Company’s loans; the Company’s levels of nonperforming assets; the potential for negative consequences resulting from regulatory violations, investigations and examinations, including potential supervisory actions, the assessment of fines and penalties, the imposition of sanctions, the need to undertake remedial actions and possible damage to the Company’s reputation; natural disasters and adverse weather, acts of terrorism, pandemics, an outbreak of hostilities or other international or domestic calamities, including the ongoing conflicts in Iran and Middle East that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, and increase the volatility of financial markets; anticipated benefits of new lines of business that the Company may enter or investments or acquisitions the Company may make that are not realized within the expected time frame or at all, including the Company’s ability to manage integration costs; further negative ratings outlooks or downgrades of the long-term credit rating of the United States; and potential government shutdowns and other political impasses, including with respect to the debt ceiling and the federal budget of the United States.

The Company cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review the Company’s filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K. The Company does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by the Company or by or on behalf of the Company, except as may be required under applicable law.

Contacts
[email protected]
[email protected]

FINWISE BANCORP
CONSOLIDATED BALANCE SHEETS
($ in thousands; Unaudited)          6/30/2026
 3/31/2026
 6/30/2025
ASSETS        Cash and cash equivalents        Cash and due from banks$6,111  $6,292  $9,389 Interest-bearing deposits 87,527   90,655   80,711 Total cash and cash equivalents 93,638   96,947   90,100 Investment securities available-for-sale, at fair value 27,546   27,629   30,146 Investment securities held-to-maturity, at cost 8,882   9,388   11,248 Strategic Program loans held-for-sale, at lower of cost or fair value 175,217   133,907   147,282 Loans held-for-investment, net 514,501   539,157   506,503 Credit enhancement asset 31,906   23,378   2,469 Assets subject to operating leases, net 11,107   11,692   14,274 Deferred taxes, net 2,848   2,215   279 Other assets 59,666   55,127   40,187 Total assets$925,311  $899,440  $842,488 ​        LIABILITIES AND SHAREHOLDERS’ EQUITY        Liabilities        Deposits        Noninterest-bearing$118,926  $127,223  $120,747 Interest-bearing 574,873   547,633   514,427 Total deposits 693,799   674,856   635,174 Other liabilities 32,321   27,977   25,355 Total liabilities 726,120   702,833   660,529          Shareholders’ equity        Common stock 14   14   13 Additional paid-in-capital 62,359   61,702   58,135 Retained earnings 136,804   134,847   123,809 Accumulated other comprehensive income, net of tax 14   44   2 Total shareholders’ equity 199,191   196,607   181,959 Total liabilities and shareholders’ equity$925,311  $899,440  $842,488  FINWISE BANCORP
CONSOLIDATED STATEMENTS OF INCOME
($ in thousands, except per share amounts; Unaudited)
   Three Months Ended 6/30/2026 3/31/2026 6/30/2025Interest income     Interest and fees on loans$32,754  $32,072  $18,485 Interest on securities 337   339   390 Other interest income 888   1,130   867 Total interest income 33,979   33,541   19,742       Interest expense     Interest on deposits 5,230   5,451   5,014 Total interest expense 5,230   5,451   5,014 Net interest income 28,749   28,090   14,728       Provision for credit losses 22,677   10,581   4,726 Net interest income after provision for credit losses 6,072   17,509   10,002       Non-interest income     Strategic Program fees 5,310   5,702   5,404 Gain on sale of loans, net 1,480   1,452   1,483 SBA loan servicing fees, net 80   158   (96)Change in fair value on investment in BFG (200)  (200)  300 Interchange income 679   703   — Credit enhancement income 16,678   5,864   2,275 Other miscellaneous income 1,567   948   971 Total non-interest income 25,594   14,627   10,337       Non-interest expense     Salaries and employee benefits 11,062   11,038   10,491 Professional services 1,146   880   949 Occupancy and equipment expenses 417   425   445 Credit enhancement servicing expense 1,512   2,429   11 Credit enhancement guarantee expense 11,774   10,098   78 Other operating expenses 2,951   3,468   2,938 Total non-interest expense 28,862   28,338   14,912 Income before income taxes 2,804   3,798   5,427       Provision for income taxes 672   1,063   1,330 Net income$2,132  $2,735  $4,097       Earnings per share, basic$0.16  $0.21  $0.31 Earnings per share, diluted$0.15  $0.20  $0.29       Weighted average shares outstanding, basic 13,112,580   13,019,369   12,781,508 Weighted average shares outstanding, diluted 13,673,167   13,642,166   13,472,394 Shares outstanding at end of period 13,687,680   13,706,693   13,469,725  FINWISE BANCORP
AVERAGE BALANCES, YIELDS, AND RATES
($ in thousands; Unaudited)
  ​Three Months Ended​6/30/2026 3/31/2026 6/30/2025 Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/Rate Average Balance Interest Average Yield/RateInterest-earning assets:                 Interest-bearing deposits$96,659 $888 3.68% $124,353 $1,130 3.68% $81,017 $867 4.29%Investment securities 36,804  337 3.67%  37,428  339 3.68%  41,920  390 3.73%Strategic Program loans held-for-sale 118,401  5,430 18.39%  124,635  5,315 17.29%  119,402  5,636 18.93%Loans held-for-investment 590,443  27,324 18.56%  596,385  26,757 18.20%  514,222  12,849 10.02%Total interest-earning assets 842,307  33,979 16.18%  882,801  33,541 15.41%  756,561  19,742 10.47%Noninterest-earning assets 60,696      66,275      60,638    Total assets$903,003     $949,076     $817,199    Interest-bearing liabilities:                 Demand$84,096 $733 3.49% $80,662 $667 3.35% $64,885 $579 3.58%Savings 10,010  20 0.79%  10,447  28 1.09%  10,028  15 0.60%Money market accounts 20,972  180 3.44%  24,447  214 3.55%  17,920  170 3.81%Certificates of deposit 432,145  4,297 3.99%  450,196  4,542 4.09%  400,757  4,250 4.25%Total deposits 547,223  5,230 3.83%  565,752  5,451 3.91%  493,590  5,014 4.07%Other borrowings —  — —%  —  — —%  6  — 0.45%Total interest-bearing liabilities 547,223  5,230 3.83%  565,752  5,451 3.91%  493,596  5,014 4.07%Noninterest-bearing deposits 124,187      145,917      112,627    Noninterest-bearing liabilities 34,462      42,982      32,753    Shareholders’ equity 197,131      194,425      178,223    Total liabilities and shareholders’ equity$903,003     $949,076     $817,199    Net interest income and interest rate spread  $28,749 12.35%   $28,090 11.50%   $14,728 6.39%Net interest margin    13.69%     12.90%     7.81%Ratio of average interest-earning assets to average interest-bearing liabilities    153.92%     156.04%     153.28% Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited)  Efficiency ratioThree Months Ended($ in thousands)6/30/2026 3/31/2026 6/30/2025Non-interest expense$28,862  $28,338  $14,912       Net interest income 28,749   28,090   14,728 Total non-interest income 25,594   14,627   10,337 Adjusted operating revenue$54,343  $42,717  $25,065 Efficiency ratio 53.1%  66.3%  59.5%
The following table presents the impact of the credit enhancement program on our efficiency ratio:

Adjusted efficiency ratioThree Months Ended​($ in thousands)6/30/2026 3/31/2026 6/30/2025Non-interest expense (GAAP)$28,862  $28,338  $14,912 Less: credit enhancement program expenses 13,286   12,526   89 Adjusted non-interest expense 15,576   15,812   14,823       Net interest income (GAAP) 28,749   28,090   14,728 Less: credit enhancement program expenses 13,286   12,526   89 Adjusted net interest income 15,463   15,564   14,639       Total non-interest income (GAAP) 25,594   14,627   10,337 Less: credit enhancement income 16,678   5,864   2,275 Adjusted non-interest income 8,916   8,763   8,062 Adjusted operating revenue$24,379  $24,327  $22,701 Adjusted efficiency ratio 63.9%  65.0%  65.3%
The following table reconciles the total provision for credit losses on a GAAP basis to a non-GAAP measure that excludes amounts attributable to credit-enhanced Strategic Program loans:

 Three Months Ended($ in thousands)6/30/2026 3/31/2026 6/30/2025Total provision for credit losses (GAAP):$22,677  $10,581  $4,726 Less: Strategic Program loans - with credit enhancement 16,678   5,864   2,275 Provision for credit losses, net of Strategic Program loans - with credit enhancement$5,999  $4,717  $2,451 
FinWise has entered into agreements with certain of its Strategic Program service providers pursuant to which they provide credit enhancement on loans which protects the Bank by indemnifying or reimbursing the Bank for incurred credit and fraud losses. We estimate and record a provision for expected losses for these Strategic Program loans in accordance with GAAP, which requires estimation of the provision without consideration of the credit enhancement. When the provision for expected losses over the life of the loans that are subject to such credit enhancement is recorded, a credit enhancement asset reflecting the future recovery of those estimated credit losses pursuant to the strategic partner’s guarantee to assume the Bank’s credit losses on each of the loans in the respective guaranteed portfolio is also recorded on the balance sheet in the form of non-interest income (credit enhancement income). Reimbursement or indemnification for incurred losses is provided for in the form of a deposit reserve account that is replenished periodically by the respective Strategic Program service provider. The credit enhancement asset is reduced as credit enhancement payments and recoveries are received from the Strategic Program service provider or taken from its cash reserve account. If the Strategic Program service provider is unable to fulfill its contracted obligations under its credit enhancement agreement, then the Bank could be exposed to the loss of the reimbursement and credit enhancement income as a result of this counterparty risk. In the event the Strategic Program service provider is not able to perform according to the contractual terms, the Bank is entitled to receive all the income on the loans. The Bank incurs expenses for the amounts owed to the strategic partner for the credit guarantee and for servicing of the credit enhanced portfolio, if applicable (credit enhancement program expenses). See the following reconciliations of GAAP to non-GAAP measures for the impact of the credit enhancement on our financial condition and results. Note that these amounts are supplemental and are not a substitute for an analysis based on GAAP measures.

The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement program expenses on total interest income on loans held-for-investment and average yield on loans held-for-investment:

 As of and for the Three Months Ended As of and for the Three Months Ended As of and for the Three Months Ended 6/30/2026 3/31/2026 6/30/2025($ in thousands; unaudited)Total Average Loans HFI Total Interest Income on Loans HFI Average Yield on Loans HFI Total Average Loans HFI Total Interest Income on Loans HFI Average Yield on Loans HFI Total Average Loans HFI Total Interest Income on Loans HFI Average Yield on Loans HFIBefore adjustment for credit enhancement$590,443 $27,324  18.56% $596,385 $26,757  18.20% $514,222 $12,849  10.02%Less: credit enhancement program expenses   (13,286)      (12,526)      (89)  Net of adjustment for credit enhancement program expenses$590,443 $14,038  9.54% $596,385 $14,231  9.68% $514,222 $12,760  9.95%
Total interest income on loans held-for-investment net of credit enhancement program expenses and the average yield on loans held-for-investment net of credit enhancement program expenses are non-GAAP measures that include the impact of credit enhancement program expenses on total interest income on loans held-for-investment and the respective average yield on loans held-for-investment, the most directly comparable GAAP measures.

The following non-GAAP measures are presented to illustrate the impact of certain credit enhancement program expenses on net interest income and net interest margin:

 As of and for the Three Months Ended As of and for the Three Months Ended As of and for the Three Months Ended 6/30/2026 3/31/2026 6/30/2025($ in thousands; unaudited)Total Average Interest-Earning Assets Net Interest Income Net Interest Margin Total Average Interest-Earning Assets Net Interest Income Net Interest Margin Total Average Interest-Earning Assets Net Interest Income Net Interest MarginBefore adjustment for credit enhancement$842,307 $28,749  13.69% $882,801 $28,090  12.90% $756,560 $14,728  7.81%Less: credit enhancement program expenses   (13,286)      (12,526)      (89)  Net of adjustment for credit enhancement program expenses$842,307 $15,463  7.36% $882,801 $15,564  7.15% $756,560 $14,639  7.76%
Net interest income and net interest margin net of credit enhancement program expenses are non-GAAP measures that include the impact of credit enhancement program expenses on net interest income and net interest margin, the most directly comparable GAAP measures.

Non-interest expenses less credit enhancement program expenses is a non-GAAP measure presented to illustrate the impact of credit enhancement program expenses on non-interest expense:

      ($ in thousands; unaudited)Three Months Ended
June 30, 2026 Three Months Ended
March 31, 2026 Three Months Ended
June 30, 2025Total non-interest expense$28,862  $28,338  $14,912 Less: credit enhancement program expenses (13,286)  (12,526)  (89)Total non-interest expense less credit enhancement program expenses$15,576  $15,812  $14,823 
Total non-interest expense less credit enhancement program expenses is a non-GAAP measure that illustrates the impact of credit enhancement program expenses on non-interest expense, the most directly comparable GAAP measure.

Total non-interest income less credit enhancement income is a non-GAAP measure to illustrate the impact of credit enhancement income resulting from credit enhanced loans on non-interest income:

($ in thousands; unaudited)Three Months Ended
June 30, 2026 Three Months Ended
March 31, 2026 Three Months Ended
June 30, 2025Total non-interest income$25,594  $14,627  $10,337 Less: credit enhancement income (16,678)  (5,864)  (2,275)Total non-interest income less credit enhancement income$8,916  $8,763  $8,062 
Total non-interest income less indemnification income is a non-GAAP measure that illustrates the impact of credit enhancement income on non-interest income. The most directly comparable GAAP measure is non-interest income.

The following non-GAAP measure is presented to illustrate the effect of the credit enhancement program that creates the credit enhancement on the allowance for credit losses:

($ in thousands; unaudited)As of June 30, 2026 As of March 31, 2026 As of June 30, 2025Allowance for credit losses$47,435  $37,973  $16,247 Less: allowance for credit losses related to credit enhanced loans (31,906)  (23,378)  (2,469)Allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans$15,529  $14,595  $13,778 
The allowance for credit losses excluding the effect of the allowance for credit losses related to credit enhanced loans is a non-GAAP measure that reflects the effect of the credit enhancement program on the allowance for credit losses. The total outstanding balance of loans held-for-investment with credit enhancement as of June 30, 2026, March 31, 2026 and June 30, 2025 was approximately $120.8 million, $109.1 million and $11.7 million, respectively.

2026 Second Quarter Financial Highlights:

Quarterly net income of $1.8 million, or $0.48 earnings per share compared to $1.7 million, or $0.44 earnings per share, during the first quarter of 2026.

Total assets of $739.8 million.

Loans increased $16.8 million during the second quarter of 2026, or 12.5% annualized growth rate.

Deposits increased $36.1 million during the second quarter of 2026, or 23.3% annualized growth rate.

Net interest margin of 4.29% during the second quarter of 2026 compared to 4.20% during the first quarter of 2026 and 4.02% during the second quarter of 2025.

Total cost of deposits of 1.37% during the second quarter of 2026 compared to 1.33% during the first quarter of 2026 and 1.53% during the second quarter of 2025.

Capital ratios remained well above regulatory requirements.

TACOMA, WA / ACCESS Newswire / July 29, 2026 / Commencement Bancorp, Inc. (OTCQX:CBWA) (the "Company", "we," or "us"), the parent company of Commencement Bank (the "Bank"), reported net income of $1.8 million, or $0.48 per share, for the second quarter of 2026 compared to $1.7 million, or $0.44 per share, for the first quarter of 2026. Comparable earnings were $1.5 million, or $0.40 per share, for the second quarter of 2025. The Bank recorded return on average assets of 1.01% for the second quarter of 2026, compared to 0.95% for the first quarter of 2026 and 0.91% for the second quarter of 2025. The return on average common equity was 11.39% for the second quarter of 2026 compared to 10.94% for the first quarter of 2026 and 11.14% for the second quarter of 2025.

"Our 20% year-over-year quarterly earnings increase, along with record loan, deposit, and total asset levels, reflects the strength and discipline of our organization. Over the past two years, we've built sustained momentum with increased profitability and stock performance that underscores the confidence our customers and shareholders place in us," said John E. Manolides, Chief Executive Officer.

"Our high-touch, community-first banking model continues to win significant market share, delivering strong quarterly earnings and building sustained shareholder value," stated Nigel L. English, President & Chief Operating Officer. "This growth is propelled by a clear market shift, as families and businesses increasingly prioritize local, transparent, and relationship-focused banking. This momentum highlights the flawless execution of our entire bank. Furthermore, the strategic additions of our new Health Care Banking Team and SBA lending manager have generated significant market enthusiasm, immediately accelerating our commercial loan and deposit pipelines."

Balance Sheet
Total assets increased $42.4 million to $739.8 million at June 30, 2026 from $697.5 million at March 31, 2026.

Federal funds sold increased $19.6 million to $37.4 million at June 30, 2026 due to the significant deposit growth during the second quarter of 2026. The Company actively monitors its liquidity for anticipated uses.

Investment securities available for sale decreased $2.3 million, or 3.1%, to $74.0 million at June 30, 2026 from $76.3 million at March 31, 2026. This decrease was due to principal payments of $2.2 million.

Loans receivable increased $16.8 million, or 12.5% annualized, to $556.6 million at June 30, 2026 from $539.8 million at March 31, 2026, due to loan originations, offset by scheduled loan payments. The Bank originated commitments of $60.0 million during second quarter of 2026 compared to $50.4 million during the first quarter of 2026 and $62.3 million during the second quarter of 2025.

Total deposits increased $36.1 million, or 23.3% annualized, to $659.6 million at June 30, 2026 from $623.5 million at March 31, 2026. Noninterest bearing deposits, as a percentage of total deposits was 30.2% at June 30, 2026.

On June 15, 2026, the Company raised $5.0 million of fixed-to-floating subordinated notes ("Notes") due June 30, 2036 to support organic growth while maintaining a strong capital position. The Notes are intended to qualify as Tier 2 capital for regulatory purposes.

Credit Quality
The Bank had nonperforming assets of $488,000, or 0.07% of total assets, at both June 30, 2026 and March 31, 2026. The Bank recorded provision for credit losses of $261,000 during the second quarter of 2026, and increase of $82,000 from the first quarter of 2026, to provide for its substantial loan growth. The provision total includes the provision for unfunded credit losses of $51,000 during the second quarter of 2026. The allowance for credit losses to loans receivable remains strong at 1.18% at both June 30, 2026 and March 31, 2026.

The percentage of classified loans (loans rated Substandard or worse) to loans receivable decreased to 0.89% at June 30, 2026 from 0.90% at March 31, 2026. There were no changes to the relationships identified as classified loans during the second quarter of 2026. The Bank proactively downgrades loans if the borrower is experiencing financial difficulties and upgrades loans if the borrower demonstrates sustained financial performance.

Liquidity
The Bank has ample liquidity with both on-and off-balance sheet sources. Total on-balance sheet liquidity of $147.0 million, or 19.9% of total assets, at June 30, 2026, includes unencumbered cash, cash equivalents and investment securities. The Bank also had access to available Federal Home Loan Bank advances, Federal Reserve's discount window, and federal funds lines with correspondent banks of $227.7 million at June 30, 2026.

Income Statement
Net interest income increased $339,000, or 5.0%, to $7.1 million for the second quarter of 2026 compared to $6.8 million for the first quarter of 2026 due to the increase in interest income of $459,000, offset partially by an increase in interest expense of $120,000. Interest income increased from the increase of average interest earning assets of $11.0 million during the second quarter of 2026 compared to the first quarter of 2026. Net interest income increased $1.1 million, or 17.3%, compared to the second quarter ended 2025. Net interest income was impacted by the reduction of the federal funds rate of 75 basis points ("bps") in the latter half of 2025, reducing variable rate loans and new loan origination pricing. During the second quarter of 2026, the Company had average variable loans of $98.7 million.

Net interest margin ("NIM") increased nine bps to 4.29% during second quarter of 2026 from 4.20% during the first quarter of 2026 due to an increase in loan yields of 10 bps, offset partially by the increase in cost of total deposit of 4 bps. NIM increased 27 bps compared to 4.02% during the second quarter of 2025 due to the combination of a decrease in total cost of deposits of 16 bps and an increase in yield on loans of 14 bps.

Interest income on loans increased $549,000, or 7.0%, during the second quarter of 2026 compared to the first quarter of 2026 due primarily to an increase in average balances of $21.7 million. Interest income on loans increased $1.1 million compared to the second quarter of 2025 due to an increase in the average balance of loans of $57.0 million. The yield on net loans increased 9 bps to 6.25% for the second quarter of 2026 from 6.16% for the first quarter of 2026 due to higher yields on new loan originations and renewals, and higher repricing rates on the adjustable portfolio. Additionally, the Bank experienced elevated prepayment penalties during the second quarter of 2026 resulting in increase in loan yield of 4 bps.

Interest income on investments decreased $207,000 during the second quarter of 2026 compared to the second quarter of 2025 due to a decrease in average balances of $13.1 million due primarily to principal payments, including the early redemption of a security with significantly higher yield. In addition, the Bank experienced negative interest impacts of its interest rate swap given the lower rate environment during the second quarter of 2026 compared to 2025.

Interest expense on deposits increased $107,000, or 5.1%, during the second quarter of 2026 compared to the first quarter of 2026 due to an increase in average balance of $2.0 million, offset by a decrease in exception pricing rates. Total cost of deposits increased 4 bps to 1.37% for second quarter of 2026 compared to 1.33% for the first quarter of 2026. Total cost of deposits decreased 16 bps compared to 1.53% for the second quarter of 2025. Noninterest bearing demand deposits represent 30.2% of total deposits at June 30, 2026 compared to 30.4% at March 31, 2026.

Total non-interest income decreased $148,000, or 25.0%, during the second quarter of 2026 compared to the second quarter of 2025 due to recognition of interest rate swaps of $188,000 during 2025. There were no swap fees recognized during the second quarter of 2026.

Total non-interest expense increased $75,000, or 1.5%, during the second quarter of 2026 compared to the first quarter of 2026 due to an increase in total compensation, primarily related to the newly hired teams. Total non-interest expense increased $640,000 compared to the second quarter of 2025 due primarily to an increase in compensation and employee benefits related to employee merit increases, additional stock compensation expense from newly granted awards, payroll taxes, and the newly hired teams.

Income tax expense increased $50,000 during the second quarter of 2026 compared to the first quarter of 2026 due primarily to an increase in net income. The effective tax rate for the second quarter of 2026 was 17.6% compared to 16.9% during the first quarter of 2026 and 19.4% for the second quarter of 2025. The decrease in effective rate compared to 2025 related to a significant increase in tax-exempt loans proportionately to net income during 2026.

###

About Commencement Bancorp, Inc.

Commencement Bancorp, Inc. is the holding company for Commencement Bank, headquartered in Tacoma, Washington. Commencement Bank was formed in 2006 to provide traditional, reliable, and sustainable banking in Pierce, King, Kitsap, and Thurston counties and the surrounding areas. Their team of experienced banking experts focuses on personal attention, flexible service, and building strong relationships with customers through state-of-the-art technology as well as traditional delivery systems. As a local bank, Commencement Bank is deeply committed to the community. For more information, please visit www.commencementbank.com. For information related to the trading of CBWA, please visit www.otcmarkets.com.

For further discussion, please contact the following:

John E. Manolides, Chief Executive Officer | 253-284-1802
Nigel L. English, President & Chief Operating Officer | 253-284-1801
Brandi Parker, Executive Vice President & Chief Financial Officer | 253-284-1803

Forward-Looking Statement Safe Harbor: This news release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Forward-looking statements describe Commencement Bancorp, Inc.'s projections, estimates, plans and expectations of future results and can be identified by words such as "believe," "intend," "estimate," "likely," "anticipate," "expect," "looking forward," and other similar expressions. They are not guarantees of future performance. Actual results may differ materially from the results expressed in these forward-looking statements, which because of their forward-looking nature, are difficult to predict. Investors should not place undue reliance on any forward-looking statement, and should consider factors that might cause differences including but not limited to the degree of competition by traditional and nontraditional competitors, declines in real estate markets, an increase in unemployment or sustained high levels of unemployment; changes in interest rates; greater than expected costs to integrate acquisitions, adverse changes in local, national and international economies; changes in the Federal Reserve's actions that affect monetary and fiscal policies; changes in legislative or regulatory actions or reform, including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act; demand for products and services; changes to the quality of the loan portfolio and our ability to succeed in our problem-asset resolution efforts; the impact of technological advances; changes in tax laws; and other risk factors. Commencement Bancorp, Inc. undertakes no obligation to publicly update or clarify any forward-looking statement to reflect the impact of events or circumstances that may arise after the date of this release.

SOURCE: Commencement Bank

Second Quarter 2026 Net Income of $182.1 million or $0.86 per Diluted Share

Second Quarter 2026 Adjusted Net Operating Income (Non-GAAP) of $183.7 million or $0.87 per Diluted Share

,  /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) today reported operating and financial results for the second quarter of 2026.

Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation ("MGIC") said, "Our strong second quarter results, highlighted by a 14.5% return on equity, reflect the continued success of our disciplined execution. We've delivered consistent performance, generated meaningful returns for shareholders, and strengthened our position for the future. Our deep industry expertise, strong balance sheet, and customer-focused approach continue to drive sustainable value."

SUMMARY FINANCIAL METRICS

Quarter ended

 ($ in millions, except where otherwise noted)

Q2 2026

Q1 2026

Q2 2025

Net income

$              182.1

$              165.3

$              192.5

Net income per diluted share

$                0.86

$                0.76

$                0.81

Adjusted net operating income

$              183.7

$              165.1

$              194.0

Adjusted net operating income per diluted share

$                0.87

$                0.76

$                0.82

New insurance written (NIW) (billions)

$                17.8

$                14.4

$                16.4

Net premiums earned

$              238.1

$              235.4

$              244.3

Insurance in force (billions)

$              304.8

$              302.7

$              297.0

Annual persistency

83.3 %

84.0 %

84.7 %

Losses incurred, net

$                11.0

$                33.2

$                (2.8)

Primary delinquency inventory

26,152

27,006

24,444

Primary IIF delinquency rate (count based)

2.37 %

2.44 %

2.21 %

Loss ratio

4.6 %

14.1 %

(1.2 %)

Underwriting expense ratio

19.8 %

20.5 %

21.9 %

In force portfolio yield (bps)

37.8

38.0

38.3

Net premium yield (bps)

31.3

31.1

33.0

Annualized return on equity

14.5 %

13.0 %

15.0 %

Book value per common share outstanding

$              24.27

$              23.63

$              22.11

Adjust for AOCI

$                0.81

$                0.79

$                0.88

Tangible book value per share

$              25.08

$              24.41

$              22.99

CAPITAL AND LIQUIDITY

As of

($ in billions, except where otherwise noted)

June 30, 2026

March 31, 2026

June 30, 2025

PMIERs available assets

$                    5.6

$                    5.8

$                    5.7

PMIERs excess

$                    2.7

$                    2.9

$                    2.4

Holding company liquidity (millions)

$                   930

$                    709

$                 1,046

SECOND QUARTER 2026 HIGHLIGHTS

We repurchased 6.6 million shares of common stock for $176.6 million. We paid a dividend of $0.15 per common share to shareholders. MGIC paid a $400 million dividend to our holding company. Our board of directors approved a share repurchase program, authorizing us to purchase an additional $750 million of common stock prior to December 31, 2028. THIRD QUARTER 2026 HIGHLIGHTS

Through July 24, 2026 we repurchased an additional 1.5 million shares of our common stock for $42.4 million. We declared a dividend of $0.17 per common share to shareholders payable on August 20, 2026, to shareholders of record at the close of business on August 5, 2026. We executed a traditional excess-of-loss reinsurance transaction which provides up to $168 million of reinsurance coverage on eligible NIW in 2027. Conference Call and Webcast Details

MGIC Investment Corporation will hold a conference call July 30, 2026, at 10:00 a.m. ET to allow securities analysts and shareholders the opportunity to hear management discuss the company's quarterly results. Individuals interested in joining by telephone should register for the call at https://edge.media-server.com/mmc/p/m2vjy8nq/ to receive the dial-in number and unique PIN to access the call. It is recommended that you join the call at least 10 minutes before the conference call begins. The call is also being webcast and can be accessed at the company's website at http://mtg.mgic.com/ under "Newsroom." A replay of the webcast will be available on the company's website through August 31, 2026.

About MGIC

Mortgage Guaranty Insurance Corporation (MGIC) (www.mgic.com), the principal subsidiary of MGIC Investment Corporation, provides mortgage insurance solutions that support responsible credit risk management for mortgage lenders and investors and enable borrowers to qualify for mortgages with lower down payments. As the founder and longstanding leader of today's private mortgage insurance industry, MGIC continues to guide the industry's evolution while serving as a trusted partner to lenders across the country.

This press release, which includes certain additional statistical and other information, including non-GAAP financial information and a supplement that contains various portfolio statistics, are all available on the Company's website at https://mtg.mgic.com/ under "Newsroom."

From time to time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC's website for information related to underwriting and pricing, and intends to continue to do so in the future. Such postings include corrections of previous disclosures and may be made without any other disclosure. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information for MGIC Investment Corporation alerts can be found at https://mtg.mgic.com/shareholder-services/email-alerts. For information about our underwriting and rates, see https://www.mgic.com/underwriting. 

Use of Non-GAAP financial measures

We believe that use of the Non-GAAP financial measures of adjusted pre-tax operating income (loss), adjusted net operating income (loss) and adjusted net operating income (loss) per diluted share facilitate the evaluation of the company's core financial performance thereby providing relevant information to investors. These measures are not recognized in accordance with accounting principles generally accepted in the United States of America (GAAP) and should not be viewed as alternatives to GAAP measures of performance.

Adjusted pre-tax operating income (loss) is defined as GAAP income (loss) before tax, excluding the effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable.

Adjusted net operating income (loss) is defined as GAAP net income (loss) excluding the after-tax effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable. The amounts of adjustments to components of pre-tax operating income (loss) are tax effected using a federal statutory tax rate of 21%.

Adjusted net operating income (loss) per diluted share is calculated in a manner consistent with the accounting standard regarding earnings per share by dividing (i) adjusted net operating income (loss) by (ii) diluted weighted average common shares outstanding, which reflects share dilution from unvested restricted stock units.

Although adjusted pre-tax operating income (loss) and adjusted net operating income (loss) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items represent items that are: (1) not viewed as part of the operating performance of our primary activities; or (2) impacted by both discretionary and other economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, along with the reasons for their treatment, are described below. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these adjustments. Other companies may calculate these measures differently. Therefore, their measures may not be comparable to those used by us.

(1) Net realized investment gains (losses). The recognition of net realized investment gains or losses can vary significantly across periods as the timing of individual securities sales is highly discretionary and is influenced by such factors as market opportunities, our tax and capital profile, and overall market cycles.

(2) Gains and losses on debt extinguishment. Gains and losses on debt extinguishment result from discretionary activities that are undertaken to enhance our capital position, and/or improve our debt profile.

(3) Infrequent or unusual non-operating items. Items that are non-recurring in nature and are not part of our primary operating activities.

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands, except per share data)

2026

2025

2026

2025

Net premiums written

$    229,962

$    237,384

$    464,905

$    472,730

Revenues

Net premiums earned

$    238,057

$    244,322

$    473,420

$    488,041

Net investment income

59,465

60,995

121,207

122,438

Net gains (losses) on investments and other financial instruments

(2,226)

(1,426)

(2,395)

(685)

Other revenue

92

354

233

685

Total revenues

295,388

304,245

592,465

610,479

Losses and expenses

Losses incurred, net

10,986

(2,835)

44,228

6,756

Underwriting and other expenses, net

45,575

52,092

93,683

105,155

Interest expense

8,899

8,899

17,798

17,798

Total losses and expenses

65,460

58,156

155,709

129,709

Income before tax

229,928

246,089

436,756

480,770

Provision for income taxes

47,783

53,607

89,308

102,828

Net income

$    182,145

$    192,482

$    347,448

$    377,942

Net income per diluted share

$       0.86

$        0.81

$       1.62

$        1.56

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

EARNINGS PER SHARE (UNAUDITED)

Three Months Ended June 30,

Six Months Ended June 30,

(In thousands, except per share data)

2026

2025

2026

2025

Net income - basic and diluted

$      182,145

$       192,482

$      347,448

$       377,942

Basic weighted average common shares outstanding

209,923

236,333

213,012

240,218

Dilutive effect of unvested restricted stock units

1,022

1,638

1,536

1,991

Diluted weighted average common shares outstanding

210,945

237,971

214,548

242,209

Diluted earnings per share

$          0.86

$          0.81

$          1.62

$          1.56

NON-GAAP RECONCILIATIONS

Reconciliation of Income before tax / Net income to Adjusted pre-tax operating income / Adjusted net operating income

Three Months Ended June 30,

2026

2025

(In thousands, except per share amounts)

Pre-tax

Tax Effect

Net

(after-tax)

Pre-tax

Tax Effect

Net

(after-tax)

Income before tax / Net income

$ 229,928

$  47,783

$  182,145

$ 246,089

$  53,607

$   192,482

Adjustments:

Net realized investment (gains) losses

1,963

412

1,551

1,944

408

1,536

Adjusted pre-tax operating income / Adjusted

net operating income

$ 231,891

$  48,195

$  183,696

$ 248,033

$  54,015

$   194,018

Reconciliation of Net income per diluted share to Adjusted net operating income per diluted share

Weighted average shares - diluted

210,945

237,971

Net income per diluted share

$      0.86

$      0.81

Net realized investment (gains) losses

0.01

0.01

Adjusted net operating income per diluted share

$      0.87

$      0.82

Reconciliation of Income before tax / Net income to Adjusted pre-tax operating income / Adjusted net operating income

Six Months Ended June 30,

2026

2025

(In thousands, except per share amounts)

Pre-tax

Tax Effect

Net
(after-tax)

Pre-tax

Tax Effect

Net
(after-tax)

Income before tax / Net income

$ 436,756

$  89,308

$  347,448

$ 480,770

$ 102,828

$   377,942

Adjustments:

Net realized investment (gains) losses

1,763

370

1,393

1,625

341

1,284

Adjusted pre-tax operating income / Adjusted
net operating income

$ 438,519

$  89,678

$  348,841

$ 482,395

$ 103,169

$   379,226

Reconciliation of Net income per diluted share to Adjusted net operating income per diluted share

Weighted average shares - diluted

214,548

242,209

Net income per diluted share

$      1.62

$      1.56

Net realized investment (gains) losses

0.01

0.01

Adjusted net operating income per diluted share

$      1.63

$      1.57

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

June 30,

December 31,

June 30,

(In thousands, except per share data)

2026

2025

2025

ASSETS

Investments (1)

$    5,717,441

$    5,807,662

$    5,818,478

Cash and cash equivalents

207,277

368,989

294,871

Restricted cash and cash equivalents

7,819

6,525

4,024

Reinsurance recoverable on loss reserves (2)

76,144

65,055

53,781

Home office and equipment, net

31,604

32,454

33,210

Deferred insurance policy acquisition costs

7,473

8,377

10,274

Deferred income taxes, net

131,243

18,512

41,818

Other assets

347,981

331,912

285,871

Total assets

$    6,526,982

$    6,639,486

$    6,542,327

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Loss reserves (2)

$      492,001

$      474,884

$      452,154

Unearned premiums

84,511

93,026

105,049

Senior notes

646,874

646,138

645,402

Other liabilities

290,237

277,887

184,778

Total liabilities

1,513,623

1,491,935

1,387,383

Shareholders' equity

5,013,359

5,147,551

5,154,944

Total liabilities and shareholders' equity

$    6,526,982

$    6,639,486

$    6,542,327

Book value per share (3)

$        24.27

$        23.47

$        22.11

(1) Investments include net unrealized gains (losses) on securities

$     (196,727)

$     (152,767)

$     (224,917)

(2) Loss reserves, net of reinsurance recoverable on loss reserves

$      415,857

$      409,829

$      398,373

(3) Shares outstanding

206,603

219,367

233,138

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

ADDITIONAL INFORMATION - NEW INSURANCE WRITTEN

2026

2025

Year-to-date

Q2

Q1

Q4

Q3

Q2

2026

2025

New primary insurance written (NIW) (billions)

$  17.8

$  14.4

$  17.1

$  16.5

$  16.4

$  32.2

$ 26.6

Monthly (including split premium plans) and

annual premium plans

17.2

13.9

16.6

16.1

16.0

31.1

25.9

Single premium plans

0.6

0.5

0.5

0.4

0.4

1.1

0.7

Product mix as a % of primary NIW

Credit score < 680

5 %

5 %

5 %

4 %

4 %

5 %

4 %

>95% LTVs

15 %

14 %

15 %

17 %

13 %

14 %

13 %

>45% DTI

25 %

25 %

26 %

27 %

26 %

25 %

28 %

Singles

3 %

4 %

3 %

2 %

2 %

3 %

2 %

Refinances

10 %

21 %

17 %

6 %

6 %

15 %

6 %

New primary risk written (billions)

$   4.6

$    3.8

$    4.4

$    4.4

$    4.3

$   8.4

$  6.9

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

ADDITIONAL INFORMATION - INSURANCE IN FORCE and RISK IN FORCE

2026

2025

Q2

Q1

Q4

Q3

Q2

Primary Insurance In Force (IIF) (billions)

$       304.8

$       302.7

$       303.1

$       300.8

$       297.0

Total # of loans

1,105,114

1,106,958

1,112,727

1,111,855

1,107,526

Premium Yield

In force portfolio yield (1)

37.8

38.0

38.0

38.3

38.3

Premium refunds (2)

(0.2)

(0.3)

(0.4)

(0.3)

(0.1)

Accelerated earnings on single premium

0.2

0.2

0.3

0.2

0.2

Total direct premium yield

37.8

37.9

37.9

38.2

38.4

Ceded premiums earned, net of profit

commission and assumed premiums (3)

(6.5)

(6.8)

(6.7)

(5.9)

(5.4)

Net premium yield

31.3

31.1

31.2

32.3

33.0

Average Loan Size of IIF (thousands)

$       275.8

$       273.4

$       272.4

$       270.6

$       268.2

Annual Persistency

83.3 %

84.0 %

84.8 %

85.0 %

84.7 %

Primary Risk In Force (RIF) (billions)

$        81.8

$         81.2

$         81.2

$         80.6

$        79.5

By credit score (%) (4)

760 & >

45 %

45 %

45 %

45 %

44 %

740-759

18 %

18 %

18 %

18 %

18 %

720-739

14 %

14 %

14 %

14 %

14 %

700-719

10 %

10 %

10 %

10 %

10 %

680-699

7 %

7 %

7 %

7 %

7 %

660-679

3 %

3 %

3 %

3 %

3 %

640-659

2 %

2 %

2 %

2 %

2 %

639 & <

1 %

1 %

1 %

1 %

2 %

Average Coverage Ratio (RIF/IIF)

26.8 %

26.8 %

26.8 %

26.8 %

26.8 %

(1)

Total direct premiums earned, excluding premium refunds and accelerated premiums from single premium policy cancellations divided by average primary insurance in force.

(2)

Premium refunds and our estimate of refundable premium on our delinquency inventory divided by average primary insurance in force.

(3)

Ceded premiums earned, net of profit commissions and assumed premiums. Assumed premiums include our participation in GSE Credit Risk Transfer programs, of which the impact on the net premium yield was 0.3 bps in the second quarter of 2026.

(4)

The credit score at the time of origination for a loan with multiple borrowers is the lowest of the borrowers' "decision credit scores." A borrower's "decision credit score" is determined as follows: if there are three credit scores available, the middle credit score is used; if two credit scores are available, the lower of the two is used; if only one credit score is available, it is used.

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

ADDITIONAL INFORMATION - DELINQUENCY STATISTICS

2026

2025

Q2

Q1

Q4

Q3

Q2

Primary IIF - Delinquent Roll Forward - # of

Loans

Beginning Delinquent Inventory

27,006

27,072

25,747

24,444

25,438

New Notices

12,433

13,791

14,489

13,582

11,970

Cures

(12,814)

(13,393)

(12,632)

(11,814)

(12,588)

Paid claims

(455)

(457)

(359)

(359)

(341)

Rescissions and denials

(18)

(7)

(13)

(18)

(35)

Other items removed from inventory (1)

—

—

(160)

(88)

—

Ending Delinquent Inventory

26,152

27,006

27,072

25,747

24,444

Primary IIF Delinquency Rate (count based)

2.37 %

2.44 %

2.43 %

2.32 %

2.21 %

Primary claim received inventory included in ending delinquent inventory

355

383

398

333

295

Composition of Cures

Reported delinquent and cured

intraquarter

3,031

3,973

3,917

3,606

3,268

Number of payments delinquent prior to

cure

3 payments or less

6,391

6,262

5,734

5,141

5,708

4-11 payments

2,834

2,702

2,466

2,500

2,887

12 payments or more

558

456

515

567

725

Total Cures in Quarter

12,814

13,393

12,632

11,814

12,588

Composition of Paids

Number of payments delinquent at time

of claim payment

3 payments or less

—

1

—

1

—

4-11 payments

48

57

32

32

32

12 payments or more

407

399

327

326

309

Total Paids in Quarter

455

457

359

359

341

Aging of Primary Delinquent Inventory

Consecutive months delinquent

      3 months or less

9,268

35 %

9,655

36 %

10,389

38 %

9,817

38 %

8,552

35 %

      4-11 months

9,682

37 %

10,289

38 %

9,559

35 %

8,858

34 %

8,868

36 %

      12 months or more

7,202

28 %

7,062

26 %

7,124

27 %

7,072

28 %

7,024

29 %

Number of payments delinquent

      3 payments or less

12,874

49 %

13,376

49 %

14,121

52 %

13,406

52 %

12,260

50 %

      4-11 payments

8,905

34 %

9,364

35 %

8,747

32 %

8,122

32 %

7,963

33 %

      12 payments or more

4,373

17 %

4,266

16 %

4,204

16 %

4,219

16 %

4,221

17 %

(1)  Items removed from inventory are associated with commutations of coverage on non-performing policies.

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

ADDITIONAL INFORMATION - RESERVES and CLAIMS PAID

2026

2025

Year-to-date

Q2

Q1

Q4

Q3

Q2

2026

2025

Reserves (millions)

Primary Direct Loss Reserves

$      490

$       497

$       472

$       450

$       450

Other Gross Loss Reserves

2

2

3

2

2

Total Gross Loss Reserves

$      492

$       499

$       475

$       452

$       452

Primary Average Direct Reserve

Per Delinquency

$   18,732

$    18,398

$    17,449

$    17,462

$    18,395

Net Paid Claims (millions) (1)

$        21

$        17

$        16

$        14

$        12

$        38

$        24

Total primary (excluding settlements)

24

20

16

14

13

44

25

Rescission and NPL settlements

—

—

3

1

—

—

—

Reinsurance

(5)

(4)

(3)

(2)

(2)

(9)

(4)

LAE and other

2

1

1

1

1

3

3

Reinsurance Terminations (1)

—

—

(1)

—

—

—

—

Primary Average Claim Payment

(thousands) (2)

$      54.7

$      42.7

$      46.1

$      39.7

$      36.5

$      48.6

$      37.6

  (1)  Net paid claims, as presented, does not include amounts received in conjunction with terminations or commutations of reinsurance agreements.

  (2)  Excludes amounts paid in settlement disputes for claims paying practices and/or commutations of policies.

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

ADDITIONAL INFORMATION - REINSURANCE AND MI RATIOS

2026

2025

Year-to-date

Q2

Q1

Q4

Q3

Q2

2026

2025

Quota Share Reinsurance

% NIW subject to reinsurance

87.6 %

86.4 %

86.2 %

88.2 %

87.7 %

87.1 %

87.4 %

Ceded premiums written and earned (millions)

$  35.6

$  37.8

$  38.9

$  32.0

$  28.1

$  73.4

$  58.0

Ceded losses incurred (millions)

$   8.4

$  12.0

$  11.9

$   6.1

$   4.0

$  20.4

$  10.4

Ceding commissions (millions) (included in

underwriting and other expenses)

$  14.1

$  13.4

$  13.4

$  12.9

$  12.1

$  27.5

$  23.8

Profit commission (millions) (included in ceded

premiums)

$  35.1

$  29.1

$  28.3

$  32.6

$  32.3

$  64.2

$  61.0

Excess-of-Loss Reinsurance

Ceded premiums earned (millions)

$  16.3

$  17.8

$  14.8

$  16.2

$  15.4

$  34.1

$  30.1

GAAP loss ratio

4.6 %

14.1 %

13.2 %

4.5 %

(1.2 %)

9.3 %

1.4 %

GAAP underwriting expense ratio

19.8 %

20.5 %

19.9 %

21.1 %

21.9 %

20.2 %

22.2 %

Mortgage Guaranty Insurance Corporation - Risk to

Capital

9.9:1

9.6:1

10.0:1

9.7:1

10.0:1

Combined Insurance Companies - Risk to Capital

9.9:1

9.6:1

10.0:1

9.7:1

10.0:1

Safe Harbor Statement

Forward Looking Statements and Risk Factors:

This release contains forward looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on current assumptions, expectations, and projections and are subject to risks and uncertainties that could cause actual results to differ materially. Forward-looking statements consist of statements which relate to matters other than historical fact, including matters that inherently refer to future events. Among others, statements that include words such as "believe," "anticipate," "will" or "expect," or words of similar import, are forward-looking statements. Our actual results may differ, possibly materially, from those expressed or implied in such forward-looking statements. Factors and uncertainties that could cause actual results to differ can be found in the "Risk Factors" and "Forward-Looking Statements" sections included in MGIC Investment Corporation's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Such factors and uncertainties include, without limitation:

Our results are dependent on U.S. economic and housing market conditions; adverse conditions may cause a decrease in new insurance written and/or an increase in delinquencies, claim frequency, and claim severity. Additionally, if the volume of low down payment home mortgage originations declines, the amount of new insurance that we write could decline. The substantial majority of MGIC's new insurance written is for loans purchased by Fannie Mae and Freddie Mac ("the GSEs"); therefore, changes to their business practices or legislative, regulatory or administrative reforms could materially affect our business and financial results. Failure to comply with the GSEs' Private Mortgage Insurance Eligibility Requirements ("PMIERs") could limit our operations, or at the extreme, lead to suspension or termination of eligibility to insure loans purchased by the GSEs. Loss reserve estimates are subject to uncertainties; actual losses may differ materially from estimates.  Additionally, because reserves are established only upon delinquency, losses may disproportionately impact earnings in certain periods. We operate in a highly regulated environment at both the federal and state levels; regulatory changes or enforcement actions may adversely affect our operations and/or financial results. If we fail to meet the State Capital Requirements of Wisconsin, we could be prevented from writing new business in all jurisdictions; we could be prevented from writing new business in a particular jurisdiction if we fail to meet the state capital requirements of that jurisdiction. Pandemics, severe weather events, and climate related developments may negatively affect home prices and affordability, potentially leading to an increase in delinquencies, claim frequency, and claim severity. Actions by government authorities, including FHFA and the GSEs, to address climate related issues could similarly affect our results.  The availability, cost, and capital credit for reinsurance may change due to market conditions or GSE actions, potentially requiring us to retain more risk and maintain additional capital. Our financial results may be impacted if lenders and investors seek alternatives to private mortgage insurance. In addition, changes in GSE programs, growth in government market share, or changes to regulatory capital rules to limit capital relief for mortgage insurance could affect our business in similar ways. The premium rates we charge may prove inadequate due to unknown future economic conditions, modelling limitations or errors, or other unexpected events. The length of time our insurance policies remain in force ("persistency") affects our results. Among other things, persistency can be influenced by interest rates, borrower equity, refinancing activity, and mortgage insurance cancellation requirements. Instability in financial markets or counterparty failures, including by reinsurers or mortgage servicers, could increase our credit risk and losses. Ineffective risk management programs, inaccurate data or model errors could impair our ability to identify and respond to risks, and materially adversely affect our business, results of operations, and financial condition. Technology system failures, cybersecurity breaches, or data privacy incidents could materially disrupt operations and cause financial and reputational damage. Changes in our underwriting practices and mix of business have the potential to increase risk and negatively affect our financial results. Our business depends on hiring and retaining experienced management and key personnel; the failure to do so could disrupt operations and negatively impact our financial condition. The mortgage insurance market is highly competitive. Competition from private mortgage insurers, government programs, and potential new market entrants —combined with pricing pressure and shifting customer preferences and relationships—could lead to a reduction in our new insurance written. Adverse rating agency actions could affect our competitiveness, GSE eligibility, and access to capital. Litigation and regulatory proceedings could result in fines, settlements, operational restrictions, or reputational harm. Our investment portfolio is exposed to risks that could adversely impact our operations and financial results.  Future capital needs could require issuance of debt or equity, potentially diluting shareholders. Our stock price may fluctuate due to economic, industry, regulatory, or company specific developments. Regulatory limits on dividends from our insurance subsidiaries have the potential to constrain holding company liquidity and our ability to pay shareholder dividends or repurchase stock in the future. We are not undertaking any obligation to update any forward-looking statements or other statements we may make even though these statements may be affected by events or circumstances occurring after the forward looking statements or other statements were made. No investor should rely on the fact that such statements are current at any time other than the time at which this press release was delivered for dissemination to the public.

While we communicate with security analysts from time to time, it is against our policy to disclose to them any material non-public information or other confidential information. Accordingly, investors should not assume that we agree with any statement or report issued by any analyst irrespective of the content of the statement or report, and such reports are not our responsibility.

SOURCE MGIC Investment Corporation