MIL-OSI USA: Texas Man Pleads Guilty for Filing False Tax Returns

Source: US State Government of Utah

A Texas man pleaded guilty today to filing false tax returns with the IRS before U.S. Magistrate Judge Susan Hightower for the Western District of Texas. The plea must be accepted by a U.S. district court judge.

The following is according to court documents and statements made in court: Jason Smith, of Kerrville, was an independent distributor for a multi-level marketing (MLM) business that sold, among other things, essential oils and aromatherapy products. Smith created an entity, Live Young Now International Ministries (Live Young Now), and directed the MLM business to pay his compensation to that entity. Smith maintained control over Live Young Now’s bank accounts and used those funds to pay for personal expenses including his mortgage, automobiles, a motorcycle, a tractor, and an airplane. Although he received tax forms from the MLM business reporting his compensation as over $1,400,000 each year for both 2018 and 2019, Smith did not provide those forms to his return preparer and falsely told his return preparer that he did not have any such forms. This caused Smith’s return preparer to prepare false tax returns that omitted more than $2.9 million in income that Smith had earned from the MLM and instead reported that Smith earned only $43 from it. Instead, Smith reported earning only $43 from the MLM. In total, Smith caused a tax loss to the IRS over $1,500,000.

Smith is scheduled to be sentenced at a later date. He faces a maximum penalty of three years in prison for each count of filing a false tax return, as well as a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Parker Tobin and Daniel Lipkowitz of the Tax Division are prosecuting the case.

MIL OSI USA News –

July 25, 2025

MIL-OSI Security: Texas Man Pleads Guilty for Filing False Tax Returns

Source: United States Attorneys General

A Texas man pleaded guilty today to filing false tax returns with the IRS before U.S. Magistrate Judge Susan Hightower for the Western District of Texas. The plea must be accepted by a U.S. district court judge.

The following is according to court documents and statements made in court: Jason Smith, of Kerrville, was an independent distributor for a multi-level marketing (MLM) business that sold, among other things, essential oils and aromatherapy products. Smith created an entity, Live Young Now International Ministries (Live Young Now), and directed the MLM business to pay his compensation to that entity. Smith maintained control over Live Young Now’s bank accounts and used those funds to pay for personal expenses including his mortgage, automobiles, a motorcycle, a tractor, and an airplane. Although he received tax forms from the MLM business reporting his compensation as over $1,400,000 each year for both 2018 and 2019, Smith did not provide those forms to his return preparer and falsely told his return preparer that he did not have any such forms. This caused Smith’s return preparer to prepare false tax returns that omitted more than $2.9 million in income that Smith had earned from the MLM and instead reported that Smith earned only $43 from it. Instead, Smith reported earning only $43 from the MLM. In total, Smith caused a tax loss to the IRS over $1,500,000.

Smith is scheduled to be sentenced at a later date. He faces a maximum penalty of three years in prison for each count of filing a false tax return, as well as a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Parker Tobin and Daniel Lipkowitz of the Tax Division are prosecuting the case.

MIL Security OSI –

July 25, 2025

MIL-OSI Security: Texas Man Pleads Guilty for Filing False Tax Returns

Source: United States Attorneys General

A Texas man pleaded guilty today to filing false tax returns with the IRS before U.S. Magistrate Judge Susan Hightower for the Western District of Texas. The plea must be accepted by a U.S. district court judge.

The following is according to court documents and statements made in court: Jason Smith, of Kerrville, was an independent distributor for a multi-level marketing (MLM) business that sold, among other things, essential oils and aromatherapy products. Smith created an entity, Live Young Now International Ministries (Live Young Now), and directed the MLM business to pay his compensation to that entity. Smith maintained control over Live Young Now’s bank accounts and used those funds to pay for personal expenses including his mortgage, automobiles, a motorcycle, a tractor, and an airplane. Although he received tax forms from the MLM business reporting his compensation as over $1,400,000 each year for both 2018 and 2019, Smith did not provide those forms to his return preparer and falsely told his return preparer that he did not have any such forms. This caused Smith’s return preparer to prepare false tax returns that omitted more than $2.9 million in income that Smith had earned from the MLM and instead reported that Smith earned only $43 from it. Instead, Smith reported earning only $43 from the MLM. In total, Smith caused a tax loss to the IRS over $1,500,000.

Smith is scheduled to be sentenced at a later date. He faces a maximum penalty of three years in prison for each count of filing a false tax return, as well as a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Parker Tobin and Daniel Lipkowitz of the Tax Division are prosecuting the case.

MIL Security OSI –

July 25, 2025

MIL-OSI: Hold Me Ltd. Signs Binding LOI to Acquire Synthetic Darwin LLC, Creator of Darwinslab Ecosystem – Self-Evolving AI Agents Platform — Eyes Strategic Web3 Expansion

Source: GlobeNewswire (MIL-OSI)

Tel Aviv, Israel, July 24, 2025 (GLOBE NEWSWIRE) — Hold Me Ltd. (OTCID: HMELF), an Israeli tech company, today announced the signing of a binding Letter of Intent (LOI) to acquire Synthetic Darwin LLC, a U.S.-based AI research and development studio pioneering the next generation of self-evolving, autonomous AI agents – the DrwinsLab.

Once fully operational, DarwinsLab’s platform would aim to enable AI agents to independently design, test, and refine themselves through recursive self-improvement and genetic algorithms modeled on natural selection, according to Gabriel Fridman of Synthetic Darwin. These agents operate in complex, open-ended simulation environments where they iteratively optimize architectures, objectives, and performance – with no human-in-the-loop. The system represents a powerful step toward fully autonomous, generalizable AI with wide applicability in R&D, algorithmic trading, decentralized coordination, robotics, and AI governance.

Under the LOI, Hold Me will acquire 100% of Synthetic Darwin in a share-based transaction, subject to definitive agreements and customary regulatory approvals. As part of the transaction strategy, Hold Me will raise growth capital, positioning the combined company at the intersection of AI, blockchain, and capital markets innovation – effectively making it the first publicly traded company operating an ecosystem powered by a Solana-based utility token.

“Synthetic Darwin will not just build models – they’re aiming to build meta-models: agents that architect and evolve better agents,” said CEO of Hold Me Ltd. “This is an inflection point in AI, and through this acquisition with a public company, we aim to bring this capability to scale – across sectors ranging from decentralized finance to defense autonomy.”

The post-transaction vision includes deploying evolved AI agents in industrial and defense applications, financial services, healthcare , and on-chain governance environments, as well as integrating blockchain-based compute and reward layers for AI training economies.

Menny Shalom, CEO of Hold Me, expects that this acquisition, would not only increase global visibility to the company but also provide access to institutional investors, enabling significant investment into compute, reinforcement environments, and cross-chain integrations.

About Hold Me Ltd.

Hold Me Ltd. (OTC: HMELF) is an Israeli-listed technology venture company focused on the convergence of artificial intelligence, decentralized systems, and digital infrastructure.

About Synthetic Darwin LLC

Synthetic Darwin LLC is a U.S.-based artificial intelligence company developing self-evolving AI systems through recursive improvement and genetic algorithms. Its autonomous agents are designed to autonomously explore, learn, and improve — unlocking new frontiers in self-directed machine intelligence.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Hold Me’s current expectations, estimates and projections about the expected date of closing of the proposed transaction and the potential benefits thereof, its business and industry, management’s beliefs and certain assumptions made by the parties, all of which are subject to change. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “expect,” “target,” similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond our control, and are not guarantees of future results, such as statements about the consummation of the proposed transaction and the anticipated benefits thereof. These and other forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include but are not limited to: the completion of the proposed transaction on anticipated terms and timing; the occurrence of any event, change or other circumstances that could give rise to the termination of the agreement; and the failure to realize the anticipated benefits of the proposed transaction. While the list of factors presented here is, will be, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements. Hold Me does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.

Contact:
info@holdme.co.il

The MIL Network –

July 25, 2025

MIL-OSI: EZCORP to Release Third Quarter Fiscal 2025 Results After Market Close on Wednesday, July 30, 2025

Source: GlobeNewswire (MIL-OSI)

AUSTIN, Texas, July 24, 2025 (GLOBE NEWSWIRE) — EZCORP, Inc. (“EZCORP” or the “Company”) (NASDAQ: EZPW), a leading provider of pawn transactions in the United States and Latin America, will issue third quarter fiscal 2025 results (period ended June 30, 2025) on Wednesday, July 30, 2025, after the market close.

The Company will host a webcast and conference call at 9:00 a.m. Eastern time on Thursday, July 31, 2025, to discuss its results. The presentation slides will be posted to the Investor Relations section of its website after the market close on Wednesday, July 30, 2025.

Date: Thursday, July 31, 2025
Time: 9:00 a.m. Eastern time
Dial-in registration link: https://register-conf.media-server.com/register/BI4f3cd4b3bf1d44a198c59f67b0acdc6f
Live webcast registration link: https://edge.media-server.com/mmc/p/pj5srnod

A replay of the conference call will be available online at http://investors.ezcorp.com shortly after the live call concludes. If you have any difficulty accessing the conference call, please contact Elevate IR at EZPW@elevate-ir.com.

About EZCORP
Formed in 1989, EZCORP has grown into a leading provider of pawn transactions in the United States and Latin America. We also sell pre-owned and recycled merchandise, primarily collateral forfeited from pawn lending operations and merchandise purchased from customers. We are dedicated to satisfying the short-term cash needs of consumers who are both cash and credit constrained, focusing on an industry-leading customer experience. EZCORP is traded on NASDAQ under the symbol EZPW and is a member of the S&P 1000 Index and Nasdaq Composite Index.

Follow us on social media:
Facebook EZPAWN Official https://www.facebook.com/EZPAWN/
EZCORP Instagram Official https://www.instagram.com/ezcorp_official/
EZPAWN Instagram Official https://www.instagram.com/ezpawnofficial/
EZCORP LinkedIn https://www.linkedin.com/company/ezcorp/

Investor Relations Contact:
Sean Mansouri, CFA
Elevate IR
EZPW@elevate-ir.com
(720) 330-2829

The MIL Network –

July 25, 2025

MIL-OSI USA: Rosen, Moran Introduce Bipartisan Bill to Cut Taxes for Veterans Opening Small Businesses

US Senate News:

Source: United States Senator Jacky Rosen (D-NV)
WASHINGTON, DC – Today, U.S. Senators Jacky Rosen (D-NV) and Jerry Moran (R-KS) introduced a bipartisan bill to cut taxes for veterans who start a small business in underserved communities. The bipartisan Veterans Jobs Opportunity Act would create new tax credits to provide veterans who are starting a small business with a 15 percent tax credit on the first $50,000 of the startup costs.
“Our veterans deserve to have every resource available as they transition into civilian life,” said Senator Rosen. “I’m proud to work across the aisle to cut taxes for Nevada veterans who start small businesses in our state and create jobs. As long as I’m in the Senate, I’ll continue working to ensure our veterans have all of the resources they need.”
“By offering support to veteran entrepreneurs, we can help bolster local economies and channel the military work ethic into local communities,” said Senator Moran. “Veteran-owned small businesses play an important role in rural communities and underserved areas, and this legislation will empower veterans to start their own businesses while benefiting the communities they invest in.”
Senator Rosen has been leading bipartisan efforts to ensure that Nevada veterans have federal support. Last year, she secured funding to increase access to affordable housing for veterans, continue building Nevada’s first national veterans cemetery in Elko, and increase funding for veterans’ access to telehealth. She also helped pass bipartisan legislation to increase veterans’ awareness of the VA home loan program. Additionally, Senator Rosen pushed to build a new veterans hospital in Reno, which she successfully convinced the white house to include in the 2024 budget.

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: Rosen Helps Introduce Bill to Protect Access to Birth Control

US Senate News:

Source: United States Senator Jacky Rosen (D-NV)
WASHINGTON, DC – Today, U.S. Senator Jacky Rosen (D-NV) joined Senate colleagues in introducing the Access to Birth Control Act. This legislation would guarantee women timely access to birth control at pharmacies nationwide—including by requiring pharmacies to provide patients with their preferred form of birth control medication.“When the Supreme Court overturned Roe v. Wade, it opened the floodgates to extreme attacks on reproductive freedoms across our nation. Anti-choice extremists have now made it clear that they will target women’s access to birth control and the ability to make their own family planning decisions,” said Senator Rosen. “Women, not anti-choice politicians, should decide what happens with their own bodies. I’m proud to have helped introduce this bill to protect women’s right to access birth control, and I’ll continue standing up to protect women’s ability to make decisions over their own bodies.”
Senator Rosen continues fighting back against efforts to restrict women’s reproductive freedoms. She helped introduce the Right to Contraception Act, which was blocked by anti-choice Republicans last Congress. She also helped introduce the Let Doctors Provide Reproductive Health Care Act to protect doctors and other health care professionals from being prosecuted for providing reproductive care to their patients, as well as the Women’s Health Protection Act to protect reproductive freedoms in federal law.

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: Malliotakis Applauds DOJ Lawsuit to Hold NYC Accountable for Dangerous Sanctuary Policies

Source: United States House of Representatives – Congresswoman Nicole Malliotakis (NY-11)

July 24, 2025

(NEW YORK, NY) – Congresswoman Nicole Malliotakis issued the following statement regarding the Department of Justice’s lawsuit against New York City over its sanctuary city policies.

“I thank Attorney General Pam Bondi and the Department of Justice for taking action to hold New York City accountable for its dangerous sanctuary policies, which have enabled violent crime in our streets, cost innocent lives, and resulted in billions of taxpayer dollars coming out of New Yorkers’ pockets.

Restoring public safety in our communities starts with New York City cooperating with ICE’s detainer requests. Failing to do so keeps dangerous criminals on our streets. I filed a Freedom of Information Law request that revealed just how far-reaching the consequences of these failed policies have become. The data showed that over 16,000 crimes were committed by thousands of perpetrators who were residing at hotels and shelters at taxpayer expense. The facts speak for themselves: sanctuary policies aren’t just misguided they are costly and dangerous.

I look forward to continuing to work with the Department of Justice and the Trump Administration to enforce immigration laws, protect our communities, and hold city officials accountable for putting politics before public safety.”

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: Fischer Advances Over $18 Million for Nebraska Water Infrastructure Projects

US Senate News:

Source: United States Senator for Nebraska Deb Fischer
Today, U.S. Senator Deb Fischer (R-Neb.), a member of the Senate Appropriations Committee, announced she advanced over $18 million in funding for critical Nebraska water infrastructure projects.
The funding was included in the Fiscal Year (FY) 2026 Interior, Environment, and Related Agencies Appropriations Act, which now awaits consideration on the Senate Floor.“Strong, reliable water infrastructure is an essential part of our daily lives. I’m proud to advance this funding for these critical projects, which will improve the lives of Nebraskans for years to come. I look forward to supporting this bill through to final passage and returning more taxpayer money back to our state,” Fischer said.Fischer advanced funding to support critical water infrastructure projects:
$8.25 million to improve the Santee Sioux Tribe’s water source
$3.2 million to repair and upgrade the water treatment plant in McCook
$2.3 million to construct a retention lagoon, lift station, and sanitary sewer extensions in Greeley
$1.4 million for watershed and stream improvements in the Middle Niobrara Natural Resources District
$776,000 for reconstruction of water and storm sewer facilities in Gothenburg
$696,000 to replace an aging well and renovate the sanitary water storage tank in Farwell
$620,000 to construct a new well and transmission line in Genoa
$600,000 to construct an additional lagoon cell in Shelby
$468,000 to line the sewer mains in Valparaiso
$100,000 to renovate an existing lagoon cell and install a depth mark in Ong

MIL OSI USA News –

July 25, 2025

MIL-OSI United Kingdom: AUKUS treaty deepens UK-Australia defence partnership to generate £20 billion in trade and create 7,000 new jobs

Source: United Kingdom – Executive Government & Departments

Press release

AUKUS treaty deepens UK-Australia defence partnership to generate £20 billion in trade and create 7,000 new jobs

Foreign Secretary and Defence Secretary in Australia alongside UK’s Carrier Strike Group – demonstrating government’s commitment to a free and open Indo-Pacific.

Signing of new UK-Australia AUKUS treaty protects our seas, supports over 21,000 UK jobs and underpins up to £20 billion exports potential.
Foreign Secretary and Defence Secretary in Australia alongside UK’s Carrier Strike Group – demonstrating government’s commitment to a free and open Indo-Pacific.
New treaty unlocks greater economic cooperation and delivers on the Government’s Plan for Change.

A new 50 year AUKUS treaty will underpin the UK and Australian submarine programmes, support tens of thousands of jobs in the UK and Australia, enhance both nations’ industrial capacity, and deliver the submarines that keep the UK and our allies safe.

The deal demonstrates the Government’s commitment to deliver both security and prosperity, safeguarding jobs across the UK and boosting our defence industry, with new submarine exports amounting to hundreds of millions of pounds a year.

Expected to be worth up to £20 billion to the UK in exports over the next 25 years, this decades-long programme will create over 7,000 new jobs in UK shipyards and across the supply chain, building on the billions of pounds already invested in Barrow, Derby and beyond.

There will be over 21,000 people working on the conventionally-armed, nuclear-powered AUKUS submarine programme (known as SSN-AUKUS) in the UK at its peak, contributing to opportunities and economic growth in local communities across the UK.

Defence Secretary, John Healey, said:

AUKUS is one of Britain’s most important defence partnerships, strengthening global security while driving growth at home.

This historic Treaty confirms our AUKUS commitment for the next half century. Through the Treaty, we are supporting high-skilled, well-paid jobs for tens of thousands of people in both the UK and Australia, delivering on our Plan for Change today and for the generations to come. There are people not yet born who will benefit from the jobs secured through this defence deal.

Our deep defence relationship with Australia – from our work together to support Ukraine, share vital intelligence, and develop innovative technology – makes us secure at home and strong abroad.

Foreign Secretary, David Lammy, said:

The UK-Australia relationship is like no other, and in our increasingly volatile and dangerous world, our anchoring friendship has real impact in the protection of global peace and prosperity.

Our new bilateral AUKUS treaty is an embodiment of that – safeguarding a free and open Indo Pacific whilst catalysing growth for both our countries.

This is how our government delivers the Plan for Change – protecting our national security and stability whilst generating jobs for Brits.

This is the latest milestone reached under the AUKUS partnership – our most strategically significant new defence partnership in a generation.

The Foreign Secretary and Defence Secretary will travel to Australia as the Carrier Strike Group and more than 3,000 British military personnel take part in the largest military exercise Australia has ever hosted. Their visit follows the exercise’s success where the AUKUS nations worked with Japan on advancing how we use robotics and autonomous systems in our defence systems.

Both ministers will meet their counterparts at the annual “Australia-UK Ministerial”, known as AUKMIN, to drive forward collaboration across the board – generating further trade and investment to our £23 billion per year annual trade relationship with Australia.

Travelling onto Melbourne, the Foreign Secretary and Defence Secretary will meet with businesses at the forefront of AUKUS – delivering the defence industrial strength needed to protect British, Australian and American interests.

The Foreign Secretary and Defence Secretary will visit Darwin to see our commitment to the Indo-Pacific first hand as the Carrier Strike Group docks in the Northern Territory.

This deployment – one of the UK’s largest this century – sends a clear message that the UK alongside our partners stands ready to protect the Indo-Pacific’s vital trade routes and will deter those who undermine global security.

On HMS Prince of Wales, the flagship of the group, the Foreign Secretary and Defence Secretary will meet the service personnel who have participated in Exercise Talisman Sabre, one of the largest military exercises in the world this year. Bringing together over 35,000 military personnel from 19 nations, this exercise strengthens and tests how key partners can work together to safeguard global trade routes and maintain regional stability.

The Carrier Strike Group deployment this year reinforces the Government’s Plan for Change by strengthening the international partnerships that underpin economic growth and national security, keeping Britain secure at home and strong abroad. It takes place against the backdrop of the Government’s landmark commitment to increase defence spending to 2.6% of GDP by 2027.

This historic investment underpins the Government’s mission-led approach to securing Britain’s future, providing the economic stability necessary for growth whilst ensuring the UK maintains cutting-edge capabilities such as to meet emerging global threats.

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Email newsdesk@fcdo.gov.uk

Telephone 020 7008 3100

Email the FCDO Newsdesk (monitored 24 hours a day) in the first instance, and we will respond as soon as possible.

Published 24 July 2025

MIL OSI United Kingdom –

July 25, 2025

MIL-OSI Russia: China has extended invitations to the 2025 World Conference on AI to senior officials from over 40 countries and international organizations — Chinese Foreign Ministry

Translation. Region: Russian Federal

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

An important disclaimer is at the bottom of this article.

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

BEIJING, July 24 (Xinhua) — China has extended invitations to the World Conference on Artificial Intelligence (AI) and the 2025 Conference on Global AI Governance to senior officials from more than 40 countries and international organizations, Foreign Ministry spokesperson Guo Jiakun said Thursday.

Chinese State Council Premier Li Qiang will attend and deliver a speech at the opening ceremony of the conference on July 26 in Shanghai, east China, a Chinese Foreign Ministry spokesman said the same day.

At a regular press briefing, Guo Jiakun stressed that artificial intelligence is rapidly developing and has become an important driving force for a new round of scientific and technological revolution and industrial transformation. He added that holding the World AI Conference and the Global AI Governance Conference is an important step in implementing China’s Global AI Governance Initiative. The goal is to make the conference a technological benchmark, an application exhibition, a catalyst for industrial development, and a platform for discussions on AI governance.

The theme of this year’s conference is “Global Solidarity in the Age of AI”.

“We hope that participants will have in-depth discussions on three key topics: deepening innovation cooperation and unleashing intellectual dividends; promoting inclusive development and bridging the digital divide; strengthening joint governance and ensuring that AI development serves the interests of the people,” Guo Jiakun said.

China hopes to strengthen unity, jointly strive for development and coordinated actions to ensure the healthy and orderly development of AI in the direction of benefit, safety and fairness, the Foreign Ministry spokesman added. –0–

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

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MIL OSI Russia News –

July 25, 2025

MIL-OSI United Nations: World News in Brief: Thailand-Cambodia border hostilities, humanitarian efforts in Syria and attacks across Ukraine

Source: United Nations 2

The dispute dates to 1953 when France first mapped the border, but tensions resurfaced in May after the death of a Cambodian soldier in a border skirmish.

Secretary-General António Guterres is “following with concern” reports of the clashes, his Deputy Spokesperson Farhan Haq told journalists in New York.

“The Secretary-General urges both sides to exercise maximum restraint and address any issues through dialogue and in a spirit of good neighbourliness, with a view to finding a lasting solution to the dispute,” he said.

Inter-agency humanitarian assistance in Syria

The Office for the Coordination of Humanitarian Affairs (OCHA) led an inter-agency visit to Rural Damascus governorate in Syria on Thursday to assess needs and provide assistance to more than 500 families displaced by recent violence in nearby Sweida governorate.

The UN agencies visited the Sayyeda Zeinab community and plan to visit the neighbouring Dar’a Governorate in the coming days, where humanitarians are supporting tens of thousands of people displaced by violence.

In Rural Damascus and Dar’a, OCHA and its partners are expanding protection services for displaced people. This includes psychosocial first aid and case management support for children.

Also on Thursday, the World Food Programme (WFP) distributed urgent food assistance to displaced families. The agency additionally continues to provide assistance across the country, including to Syrians returning home after a decade of conflict.

Limited access to Sweida

On Wednesday, a second convoy from the Syrian Arab Red Crescent (SARC) arrived in Sweida, with UN agencies providing support.

The convoy included food, wheat flour, fuel, medicines and health supplies. Medical supplies were delivered to the Sweida national hospital, and wheat flour was dispatched to bakeries.

Across Sweida, Rural Damascus and Dar’a governorates, the UN has distributed over 1,600 dignity kits to displaced women and girls. UN partners are also providing recreational activities, awareness sessions on gender-based violence and support for women and children.

But despite efforts in neighbouring governorates and increasing support in Sweida, full and direct access to the conflict-ridden governorate itself is limited due to security constraints.

Nonetheless, the UN is continuing dialogue with Syrian authorities to facilitate direct access to Sweida.

Nationwide attacks in Ukraine

OCHA further reported that at least five civilians were killed, and 46 others injured, in attacks across several regions of Ukraine over the past two days.

Kharkiv in the northeast was one of the more affected regions, where a glide bomb strike injured at least 16 people on Thursday, and fighting killed three and injured five others on Wednesday.

Additionally, overnight attacks in central Ukraine injured seven people in Cherkasy and four in Odesa City, damaging homes, health centres, schools, shopping areas and a market.

Civilians in the southern Kherson region, the eastern Donetsk region and the southeast Zaporizhzhia region were also affected.

Evacuations and humanitarian response

Following the overnight attacks in Cherkasy and Odesa, aid workers assisted first responders by providing first aid, meals, shelter materials, hygiene kits, emotional support and legal assistance to affected families.

Amid the hostilities, nearly 600 people were evacuated from the Donetsk region, and, in the past day, another 24 were evacuated from the northeastern region of Sumy.

MIL OSI United Nations News –

July 25, 2025

MIL-OSI United Nations: Two ex-militia leaders in Central African Republic sentenced for war crimes, crimes against humanity

Source: United Nations 2

Alfred Yekatom and Patrice-Edouard Ngaïssona received prison sentences of 15 and 12 years for their roles in brutal attacks against civilians – primarily from the country’s mainly Muslim Seleka population – during the 2013-14 civil war.

They were found guilty “beyond any reasonable doubt” of leading and facilitating attacks on civilians in the capital, Bangui, and the country’s west.

Thousands of people were killed in the violence that swept CAR following a 2012 coup led by the mainly Muslim rebel coalition, Séléka. The fighting took on a deeply sectarian tenor as Anti-Balaka militia started a brutal campaign of reprisal attacks.

Long list of crimes

The ICC’s Trial Chamber V found Mr. Yekatom responsible for a number of crimes he committed in the context of the attack on Bangui (the capital of CAR), the events at Yamwara (a school where he had established a base), and during the advance of his group on the PK9-Mbaïki axis.

These included murder, torture, forcible transfer and deportation, directing an attack against a building dedicated to religion and persecution.

Mr. Ngaïssona was convicted for aiding and abetting many of the same crimes, including persecution, forcible displacement and cruel treatment.

Both men were also found to have targeted Muslims based on the Anti-Balaka’s perception of collective guilt for Seleka abuses.

The judges sentenced Mr. Yekatom to 15 years and Mr. Ngaïssona to 12 years, with time already served to be deducted.

Charges of war crimes of pillaging and directing an attack against a religious building during the attack on Bossangoa were not upheld against Mr. Ngaïssona, and those of conscription, enlistment and use of children were not upheld against Mr. Yekatom.

‘Instrumentalization of religion’

The Chamber noted that while religion was instrumentalised by armed groups during the conflict, the violence was not initially religious in nature.

Many witnesses testified that Muslims and Christians had lived peacefully together prior to the conflict.

The convictions mark the conclusion of a trial that began in February 2021. Over the course of proceedings, the Prosecution called 114 witnesses, while the Defense teams called 56. A total of 1,965 victims participated in the trial through legal representatives.

MIL OSI United Nations News –

July 25, 2025

MIL-OSI USA: Takano Signs onto Bipartisan Epstein Bill

Source: United States House of Representatives – Representative Mark Takano (D-Calif)

July 24, 2025

WASHINGTON, D.C. — Rep. Mark Takano signed onto H.Res.581, bipartisan legislation that would ensure the American public can know the truth about convicted child sex trafficker Jeffrey Epstein.

“I cosponsored this bipartisan legislation because the American people deserve the truth. Jeffrey Epstein committed horrific crimes andfor years, powerful people helped him, enabled him, or looked the other way. The public deserves to know who was involved.

But instead of helping us shine a light, House Republicans are doing everything they can to keep the truth hidden. They are shutting down the House to avoid a vote on this bill. They promised transparency. What they are delivering is a cover-up.”

If you or someone you know has experienced sexual violence, resources are available here.

MIL OSI USA News –

July 25, 2025

MIL-OSI Security: FBI and Law Enforcement Partners Arrest Members of the Mexican Mafia Prison Gang

Source: US FBI

Today, the Federal Bureau of Investigation (FBI) San Diego Field Office–Imperial County Resident Agency, FBI Los Angeles, FBI SWAT, ATF Los Angeles–El Centro Office, the Imperial County Sheriff’s Office (ICSO) Border Crime Suppression Team, the United States Marshals Service, and other law enforcement partners conducted court-authorized law enforcement activity related to an ongoing investigation involving the Mexican Mafia criminal enterprise.

“Removing violent criminals from our streets and seizing their resources is a top priority for the FBI and paramount to our mission of protecting the American people,” said Special Agent in Charge Mark Dargis of the San Diego Field Office. “Today’s successful operation is another example of what we can accomplish by working closely with our law enforcement partners on the shared goal of safer communities.”

The FBI and its law enforcement partners arrested a total of five individuals believed to be associated with the Mexican Mafia prison gang and seized several firearms, illicit proceeds, distribution amounts of methamphetamine, and electronics. All subjects were indicted for allegedly operating an illegal gambling establishment, money laundering, and/or importation of methamphetamine.

Since the start of this extensive investigation, the FBI, ATF, ICSO, and other law enforcement partner agencies have executed a number of search warrants and seized U.S. currency, drugs, firearms, electronics, and gambling machines. So far, 16 subjects associated with the Mexican Mafia have been indicted and or arrested on federal charges, including alleged drug trafficking and importation, weapons offenses, money laundering, and operating an illegal gambling business.

FBI San Diego will continue to collaborate with its law enforcement partners and U.S. Attorney’s Office to apprehend individuals tied to violent criminal organizations and bring them to justice. Learn more about the FBI’s violent crime program.

MIL Security OSI –

July 25, 2025

MIL-OSI: Ninepoint Partners Announces July 2025 Cash Distributions for ETF Series Securities

Source: GlobeNewswire (MIL-OSI)

TORONTO, July 24, 2025 (GLOBE NEWSWIRE) — Ninepoint Partners LP (“Ninepoint Partners”) today announced the July 2025 cash distributions for its ETF Series securities. The record date for the distributions is July 31, 2025. All distributions are payable on August 8, 2025.

The per-unit July 2025 distributions are detailed below:

About Ninepoint Partners

Based in Toronto, Ninepoint Partners LP is one of Canada’s leading alternative investment management firms overseeing approximately $7 billion in assets under management and institutional contracts. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies spanning Equities, Fixed Income, Alternative Income, Real Assets, F/X and Digital Assets.

For more information on Ninepoint Partners LP, please visit www.ninepoint.com or for inquiries regarding the offering, please contact us at (416) 943-6707 or (866) 299-9906 or invest@ninepoint.com.

Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.

Please note that distribution factors (breakdown between income, capital gains and return of capital) can only be calculated when a fund has reached its year-end. Distribution information should not be relied upon for income tax reporting purposes as this is only a component of total distributions for the year. For accurate distribution amounts for the purpose of filing an income tax return, please refer to the appropriate T3/T5 slips for that particular taxation year. Please refer to the prospectus or offering memorandum of each Fund for details of the Fund’s distribution policy.

The payment of distributions and distribution breakdown, if applicable, is not guaranteed and may fluctuate. The payment of distributions should not be confused with a Fund’s performance, rate of return, or yield. If distributions paid by the Fund are greater than the performance of the Fund, then an investor’s original investment will shrink. Distributions paid as a result of capital gains realized by a Fund and income and dividends earned by a Fund are taxable in the year they are paid. An investor’s adjusted cost base will be reduced by the amount of any returns of capital. If an investor’s adjusted cost base goes below zero, then capital gains tax will have to be paid on the amount below zero.

Sales Inquiries:

Ninepoint Partners LP
Neil Ross
416-945-6227
nross@ninepoint.com

The MIL Network –

July 25, 2025

MIL-OSI: Landmark Bancorp, Inc. Announces Second Quarter 2025 Earnings per Share of $0.75 Declares Cash Dividend of $0.21 per Share

Source: GlobeNewswire (MIL-OSI)

Manhattan, KS, July 24, 2025 (GLOBE NEWSWIRE) — Landmark Bancorp, Inc. (“Landmark”; Nasdaq: LARK) reported diluted earnings per share of $0.75 for the second quarter of 2025, compared to $0.81 per share in the first quarter of 2025 and $0.52 per share in the same quarter of the prior year. Net earnings for the second quarter totaled $4.4 million, compared to $4.7 million in the prior quarter and $3.0 million in the second quarter of 2024. For the three months ended June 30, 2025, the return on average assets was 1.11%, the return on average equity was 12.25% and the efficiency ratio⁽¹⁾ was 62.8%.

For the first six months of 2025, diluted earnings per share totaled $1.56 compared to $1.01 during the same period in 2024. Net earnings for the first six months of 2025 totaled $9.1 million, compared to $5.8 million in the first six months of 2024. For the six months ended June 30, 2025, the return on average assets was 1.16%, the return on average equity was 12.96%, and the efficiency ratio⁽¹⁾ was 63.4%.

Second Quarter 2025 Performance Highlights

	●	Total gross loans increased in the second quarter 2025 by $42.9 million, an annualized increase of 16.0% over the prior quarter.
	●	The net interest margin improved 7 basis points to 3.83% compared to 3.76% in prior quarter and 3.25% in the second quarter of the prior year.
	●	Net interest income increased $564,000, or 4.3%, in the second quarter of 2025, and increased $2.7 million, or 24.7%, from the same quarter of the prior year.
	●	Deposits increased $23.4 million, or 1.9%, from the same quarter of the prior year, and declined $61.9 million from the prior quarter.
	●	Total assets increased $46.7 million, or 11.9% annualized, compared to the prior quarter.
	●	Credit quality remained stable with net charge-offs totaling $40,000 in the second quarter.
	●	Stockholders’ equity increased $5.7 million, and the ratio of equity to assets increased to 9.13% in the second quarter.

In making this announcement, Abby Wendel, President and Chief Executive Officer of Landmark, commented, “I am pleased to report continued strong net earnings this quarter driven by growth in loans and net interest income. Loan demand remained strong in the second quarter of 2025, especially for commercial, commercial real estate and residential mortgage loans as total gross loans increased by $42.9 million or 16.0% annualized. Despite a decrease in total deposits in the second quarter, we have sustained year-over-year growth of $23.4 million, or 1.9%. The strong growth in our loan portfolio led to net interest income growth of 24.7% over the previous year and continued expansion in our net interest margin, which increased to 3.83%. Non-interest income increased by 8.0% this quarter compared to the prior quarter and expenses were well controlled. Credit quality remained solid overall with minimal net charge-offs. A provision for credit losses of $1.0 million was recorded this quarter to reflect the growth in loans and higher reserves against individually evaluated loans on non-accrual. Our strong performance is a direct result of the daily commitment and effort our associates put into making Landmark the top choice for both customers and investors.”

Landmark’s Board of Directors declared a cash dividend of $0.21 per share, to be paid August 27, 2025, to common stockholders of record as of the close of business on August 13, 2025.

Management will host a conference call to discuss the Company’s financial results at 10:00 a.m. (Central time) on Friday, July 25, 2025. Investors may participate via telephone by dialing (833) 470-1428 and using access code 703723. A replay of the call will be available through August 1, 2025, by dialing (855) 762-8306 and using access code 160217.

(1) Non-GAAP financial measure. See the “Non-GAAP Financial Measures” section of this press release for a reconciliation.

Net Interest Income

Net interest income in the second quarter of 2025 totaled $13.7 million representing an increase of $564,000, or 4.3%, compared to the previous quarter and an increase of $2.7 million, or 24.7%, in the same quarter of the prior year. The increase in net interest income this quarter was driven by higher interest income on loans and lower interest expense on deposits. The net interest margin increased to 3.83% during the second quarter from 3.76% during the prior quarter and 3.25% in the second quarter of the prior year. Compared to the previous quarter, interest income on loans increased $791,000 to $17.2 million, due to higher average balances combined with higher yields on loans. Average loan balances increased $33.3 million, while the average tax-equivalent yield on the loan portfolio increased 3 basis points to 6.37%. Interest on investment securities declined slightly due to lower balances, partially offset by higher earning rates. Compared to the first quarter of 2025, interest on deposits decreased $92,000, or 1.8%, due to lower rates and balances. Interest on other borrowed funds increased by $284,000, due to higher average balances. The average rate on interest-bearing deposits decreased 3 basis points to 2.14% while the average rate on other borrowed funds decreased 11 basis points to 4.98% in the second quarter of 2025.

Non-Interest Income

Non-interest income totaled $3.6 million for the second quarter of 2025, an increase of $268,000 from the previous quarter. The increase in non-interest income during the second quarter of 2025 was primarily due to increases of $178,000 in gains on sales of loans and $88,000 in fees and service charges.

Non-Interest Expense

During the second quarter of 2025, non-interest expense totaled $11.0 million, an increase of $200,000, or 1.9%, compared to the prior quarter. The increase in non-interest expense was primarily due to increases of $233,000 in data processing expense and $101,000 in other non-interest expense. The increase in data processing expense resulted from the implementation of additional services added and account growth, while the increase in other non-interest expense was primarily due to higher losses at our captive insurance subsidiary. Partially offsetting those increases was a decline in professional fees related to lower consulting and legal expenses during the quarter.

Income Tax Expense

Landmark recorded income tax expense of $944,000 in the second quarter of 2025 compared to $1.0 million in the first quarter of 2025. The effective tax rate was 17.7% in the second quarter of 2025 compared to 17.8% in the first quarter of 2025.

Balance Sheet Highlights

As of June 30, 2025, gross loans totaled $1.1 billion, an increase of $42.9 million, or 16.0% annualized since March 31, 2025. During the quarter, loan growth was primarily comprised of one-to-four family residential real estate (growth of $21.5 million), commercial (growth of $13.4 million) and commercial real estate (growth of $10.9 million). Investment securities available-for-sale decreased $3.6 million during the second quarter of 2025 mainly due to maturities. Pre-tax unrealized net losses on the investment securities portfolio decreased from $17.1 million at March 31, 2025, to $13.9 million at June 30, 2025, mainly due to lower market rates for these securities at June 30, 2025.

Period end deposit balances decreased $61.9 million to $1.3 billion at June 30, 2025. The decline in deposits was driven by decreases in money market and checking accounts (decrease of $50.5 million), non-interest-bearing demand deposits (decrease of $16.5 million) and savings (decrease of $1.1 million), partially offset by an increase in certificates of deposit (increase of $6.2 million). The decrease in deposits was primarily driven by a decline in brokered deposits as well as lower core deposit balances at June 30, 2025. Total borrowings increased $105.9 million during the second quarter 2025 to fund asset growth and to offset lower deposit balances. At June 30, 2025, the loan to deposits ratio was 86.6% compared to 79.5% in the prior quarter.

Stockholders’ equity increased to $148.4 million (book value of $25.66 per share) as of June 30, 2025, from $142.7 million (book value of $24.69 per share) as of March 31, 2025. The increase in stockholders’ equity was due mainly to a decrease in accumulated other comprehensive losses (lower unrealized net losses on investment securities) along with net earnings during the quarter. The ratio of equity to total assets increased to 9.13% on June 30, 2025, from 9.04% on March 31, 2025.

The allowance for credit losses totaled $13.8 million, or 1.23% of total gross loans on June 30, 2025, compared to $12.8 million, or 1.19% of total gross loans on March 31, 2025. Net loan charge-offs totaled $40,000 in the second quarter of 2025, compared to $23,000 during the first quarter of 2025 and net recoveries of $52,000 in the second quarter of the prior year. A provision for credit losses on loans of $1.0 million was recorded in the second quarter of 2025 compared to no provision in the first quarter of 2025.

Non-performing loans totaled $17.0 million, or 1.52% of gross loans, at June 30, 2025, compared to $13.3 million, or 1.24% of gross loans, at March 31, 2025. Loans 30-89 days delinquent totaled $4.3 million, or 0.39% of gross loans, as of June 30, 2025, compared to $10.0 million, or 0.93% of gross loans, as of March 31, 2025.

About Landmark

Landmark Bancorp, Inc., the holding company for Landmark National Bank, is listed on the Nasdaq Global Market under the symbol “LARK.” Headquartered in Manhattan, Kansas, Landmark National Bank is a community banking organization dedicated to providing quality financial and banking services. Landmark National Bank has 29 locations in 23 communities across Kansas: Manhattan (2), Auburn, Dodge City (2), Fort Scott (2), Garden City, Great Bend (2), Hoisington, Iola, Junction City, La Crosse, Lawrence (2), Lenexa, Louisburg, Mound City, Osage City, Osawatomie, Overland Park, Paola, Pittsburg, Prairie Village, Topeka (2), Wamego and Wellsville, Kansas. Visit www.banklandmark.com for more information.

Contact:
Mark A. Herpich
Chief Financial Officer
(785) 565-2000

Special Note Concerning Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of Landmark. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this press release, including forward-looking statements, speak only as of the date they are made, and Landmark undertakes no obligation to update any statement in light of new information or future events. A number of factors, many of which are beyond our ability to control or predict, could cause actual results to differ materially from those in our forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies and financial markets, including the effects of inflationary pressures and future monetary policies of the Federal Reserve in response thereto; (ii) effects on the U.S. economy resulting from the threat or implementation of new, or changes to, existing policies, regulations, regulatory and other governmental agencies and executive orders, including tariffs, immigration policy, regulatory and other governmental agencies, DEI and ESG initiatives, consumer protection, foreign policy and tax regulations; ; (iii) changes in interest rates and prepayment rates of our assets; (iv) increased competition in the financial services sector and the inability to attract new customers, including from non-bank competitors such as credit unions and “fintech” companies; (v) timely development and acceptance of new products and services; (vi) rapid and expensive technological changes implemented by us and other parties in the financial services industry, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequence to us and our customers, including the development and implementation of tools incorporating artificial intelligence; (vii) our risk management framework; (viii) interruptions in information technology and telecommunications systems and third-party services; (ix) the economic effects of severe weather, natural disasters, widespread disease or pandemics, or other external events; (x) the loss of key executives or employees; (xi) changes in consumer spending; (xii) integration of acquired businesses; (xiii) the commencement, cost and outcome of litigation and other legal proceedings and regulatory actions against us or to which the Company may become subject; (xiv) changes in accounting policies and practices, such as the implementation of the current expected credit losses accounting standard; (xv) the economic impact of past and any future terrorist attacks, acts of war, including ongoing conflicts in the Middle East and the Russian invasion of Ukraine, or threats thereof, and the response of the United States to any such threats and attacks; (xvi) the ability to manage credit risk, forecast loan losses and maintain an adequate allowance for loan losses; (xvii) fluctuations in the value of securities held in our securities portfolio; (xviii) concentrations within our loan portfolio and large loans to certain borrowers (including commercial real estate loans); (xix) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xx) the level of non-performing assets on our balance sheets; (xxi) the ability to raise additional capital; (xxii) the occurrence of fraudulent activity, breaches or failures of our or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxiii) declines in real estate values; (xxiv) the effects of fraud on the part of our employees, customers, vendors or counterparties; (xxv) the Company’s success at managing and responding to the risks involved in the foregoing items; and (xxvi) any other risks described in the “Risk Factors” sections of reports filed by Landmark with the Securities and Exchange Commission. These risks and uncertainties should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. Additional information concerning Landmark and its business, including additional risk factors that could materially affect Landmark’s financial results, is included in our filings with the Securities and Exchange Commission.

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets (unaudited)

	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)	2025			2025			2024			2024			2024
Assets
Cash and cash equivalents	$	25,038		$	21,881		$	20,275		$	21,211		$	23,889
Interest-bearing deposits at other banks		3,463			3,973			4,110			4,363			4,881
Investment securities available-for-sale, at fair value:
U.S. treasury securities		51,624			58,424			64,458			83,753			89,325
Municipal obligations, tax exempt		100,802			101,812			107,128			112,126			114,047
Municipal obligations, taxable		75,037			70,614			71,715			75,129			74,588
Agency mortgage-backed securities		124,979			125,142			129,211			140,004			142,499
Total investment securities available-for-sale		352,442			355,992			372,512			411,012			420,459
Investment securities held-to-maturity		3,730			3,701			3,672			3,643			3,613
Bank stocks, at cost		10,946			6,225			6,618			7,894			9,647
Loans:
One-to-four family residential real estate		377,133			355,632			352,209			344,380			332,090
Construction and land		26,373			28,645			25,328			23,454			30,480
Commercial real estate		370,455			359,579			345,159			324,016			318,850
Commercial		204,303			190,881			192,325			181,652			178,876
Agriculture		100,348			101,808			100,562			91,986			84,523
Municipal		6,938			7,082			7,091			7,098			6,556
Consumer		32,234			31,297			29,679			29,263			29,200
Total gross loans		1,117,784			1,074,924			1,052,353			1,001,849			980,575
Net deferred loan (fees) costs and loans in process		(615	)		(426	)		(307	)		(63	)		(583	)
Allowance for credit losses		(13,762	)		(12,802	)		(12,825	)		(11,544	)		(10,903	)
Loans, net		1,103,407			1,061,696			1,039,221			990,242			969,089
Loans held for sale, at fair value		4,773			2,997			3,420			3,250			2,513
Bank owned life insurance		39,607			39,329			39,056			39,176			38,826
Premises and equipment, net		19,654			19,886			20,220			20,976			20,986
Goodwill		32,377			32,377			32,377			32,377			32,377
Other intangible assets, net		2,275			2,426			2,578			2,729			2,900
Mortgage servicing rights		3,082			3,045			3,061			3,041			2,997
Real estate owned, net		167			167			167			428			428
Other assets		23,904			24,894			26,855			23,309			28,149
Total assets	$	1,624,865		$	1,578,589		$	1,574,142		$	1,563,651		$	1,560,754

Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Non-interest-bearing demand		351,993			368,480			351,595			360,188			360,631
Money market and checking		562,919			613,459			636,963			565,629			546,385
Savings		148,092			149,223			145,514			145,825			150,996
Certificates of deposit		210,897			204,660			194,694			203,860			192,470
Total deposits		1,273,901			1,335,822			1,328,766			1,275,502			1,250,482
FHLB and other borrowings		155,110			48,767			53,046			92,050			131,330
Subordinated debentures		21,651			21,651			21,651			21,651			21,651
Repurchase agreements		5,825			6,256			13,808			9,528			8,745
Accrued interest and other liabilities		20,002			23,442			20,656			25,229			20,292
Total liabilities		1,476,489			1,435,938			1,437,927			1,423,960			1,432,500
Stockholders’ equity:
Common stock		58			58			58			55			55
Additional paid-in capital		95,266			95,148			95,051			89,532			89,469
Retained earnings		63,612			60,422			56,934			60,549			57,774
Treasury stock, at cost		–			–			–			(396	)		(330	)
Accumulated other comprehensive loss		(10,560	)		(12,977	)		(15,828	)		(10,049	)		(18,714	)
Total stockholders’ equity		148,376			142,651			136,215			139,691			128,254
Total liabilities and stockholders’ equity	$	1,624,865		$	1,578,589		$	1,574,142		$	1,563,651		$	1,560,754

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Consolidated Statements of Earnings (unaudited)

	Three months ended,							Six months ended,
	June 30,		March 31,			June 30,		June 30,			June 30,
(Dollars in thousands, except per share amounts)	2025		2025			2024		2025			2024
Interest income:
Loans	$	17,186	$	16,395		$	15,022	$	33,581		$	29,512
Investment securities:
Taxable		2,163		2,180			2,359		4,343			4,787
Tax-exempt		701		719			759		1,420			1,523
Interest-bearing deposits at banks		48		48			40		96			103
Total interest income		20,098		19,342			18,180		39,440			35,925
Interest expense:
Deposits		5,144		5,236			5,673		10,380			11,130
FHLB and other borrowings		861		565			1,027		1,426			2,049
Subordinated debentures		358		357			418		715			830
Repurchase agreements		52		65			88		117			195
Total interest expense		6,415		6,223			7,206		12,638			14,204
Net interest income		13,683		13,119			10,974		26,802			21,721
Provision for credit losses		1,000		–			–		1,000			300
Net interest income after provision for credit losses		12,683		13,119			10,974		25,802			21,421
Non-interest income:
Fees and service charges		2,476		2,388			2,691		4,864			5,152
Gains on sales of loans, net		740		562			648		1,302			1,160
Bank owned life insurance		278		272			248		550			493
Losses on sales of investment securities, net		–		(2	)		–		(2	)		–
Other		132		138			133		270			315
Total non-interest income		3,626		3,358			3,720		6,984			7,120
Non-interest expense:
Compensation and benefits		6,234		6,154			5,504		12,388			11,036
Occupancy and equipment		1,244		1,252			1,294		2,496			2,684
Data processing		629		396			492		1,025			973
Amortization of mortgage servicing rights and other intangibles		238		239			256		477			668
Professional fees		540		745			649		1,285			1,296
Valuation allowance on real estate held for sale		–		–			979		–			1,108
Other		2,076		1,975			1,921		4,051			3,881
Total non-interest expense		10,961		10,761			11,095		21,722			21,646
Earnings before income taxes		5,348		5,716			3,599		11,064			6,895
Income tax expense		944		1,015			587		1,959			1,105
Net earnings	$	4,404	$	4,701		$	3,012	$	9,105		$	5,790

Net earnings per share (1)
Basic	$	0.76	$	0.81		$	0.52	$	1.58		$	1.01
Diluted		0.75		0.81			0.52		1.56			1.01
Dividends per share (1)		0.21		0.21			0.20		0.42			0.40
Shares outstanding at end of period (1)		5,783,312		5,778,610			5,743,044		5,783,312			5,743,044
Weighted average common shares outstanding – basic (1)		5,782,555		5,777,593			5,745,310		5,780,930			5,744,381
Weighted average common shares outstanding – diluted (1)		5,840,923		5,814,650			5,748,053		5,827,844			5,748,332

Tax equivalent net interest income	$	13,851	$	13,291		$	11,167	$	27,142		$	22,075

(1) Share and per share values at or for the periods ended June 30, 2024 have been adjusted to give effect to the 5% stock dividend paid during December 2024.

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Select Ratios and Other Data (unaudited)

	As of or for the									As of or for the
	three months ended,									six months ended,
	June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands, except per share amounts)	2025			2025			2024			2025			2024
Performance ratios:
Return on average assets (1)		1.11	%		1.21	%		0.78	%		1.16	%		0.75	%
Return on average equity (1)		12.25	%		13.71	%		9.72	%		12.96	%		9.30	%
Net interest margin (1)(2)		3.83	%		3.76	%		3.21	%		3.80	%		3.16	%
Effective tax rate		17.7	%		17.8	%		16.3	%		17.7	%		16.0	%
Efficiency ratio (3)		62.8	%		64.1	%		67.9	%		63.4	%		70.0	%
Non-interest income to total income (3)		20.9	%		20.4	%		25.3	%		20.7	%		24.7	%

Average balances:
Investment securities	$	363,878		$	377,845		$	437,136		$	370,823		$	447,034
Loans		1,081,865			1,048,585			955,104			1,065,317			950,420
Assets		1,592,939			1,574,295			1,545,816			1,583,669			1,550,739
Interest-bearing deposits		965,214			979,787			936,237			972,460			935,827
FHLB and other borrowings		74,007			48,428			72,875			61,288			72,747
Subordinated debentures		21,651			21,651			21,651			21,651			21,651
Repurchase agreements		6,683			8,634			11,524			7,653			12,947
Stockholders’ equity	$	144,151		$	139,068		$	124,624		$	141,623		$	125,235

Average tax equivalent yield/cost (1):
Investment securities		3.34	%		3.29	%		3.04	%		3.32	%		2.99	%
Loans		6.37	%		6.34	%		6.33	%		6.36	%		6.25	%
Total interest-bearing assets		5.60	%		5.53	%		5.29	%		5.56	%		5.20	%
Interest-bearing deposits		2.14	%		2.17	%		2.44	%		2.15	%		2.39	%
FHLB and other borrowings		4.67	%		4.73	%		5.67	%		4.69	%		5.66	%
Subordinated debentures		6.63	%		6.69	%		7.76	%		6.66	%		7.71	%
Repurchase agreements		3.12	%		3.05	%		3.07	%		3.08	%		3.03	%
Total interest-bearing liabilities		2.41	%		2.38	%		2.78	%		2.40	%		2.74	%

Capital ratios:
Equity to total assets		9.13	%		9.04	%		8.22	%
Tangible equity to tangible assets (3)		7.15	%		6.99	%		6.09	%
Book value per share	$	25.66		$	24.69		$	22.33
Tangible book value per share (3)	$	19.66		$	18.66		$	16.19

Rollforward of allowance for credit losses (loans):
Beginning balance	$	12,802		$	12,825		$	10,851		$	12,825		$	10,608
Charge-offs		(103	)		(108	)		(119	)		(211	)		(260	)
Recoveries		63			85			171			148			305
Provision for credit losses for loans		1,000			–			–			1,000			250
Ending balance	$	13,762		$	12,802		$	10,903		$	13,762		$	10,903

Allowance for unfunded loan commitments	$	150		$	150		$	300

Non-performing assets:
Non-accrual loans	$	16,984		$	13,280		$	5,007
Accruing loans over 90 days past due		–			–			–
Real estate owned		167			167			428
Total non-performing assets	$	17,151		$	13,447		$	5,435

Loans 30-89 days delinquent	$	4,321		$	9,977		$	1,872

Other ratios:
Loans to deposits		86.62	%		79.48	%		77.50	%
Loans 30-89 days delinquent and still accruing to gross loans outstanding		0.39	%		0.93	%		0.19	%
Total non-performing loans to gross loans outstanding		1.52	%		1.24	%		0.51	%
Total non-performing assets to total assets		1.06	%		0.85	%		0.35	%
Allowance for credit losses to gross loans outstanding		1.23	%		1.19	%		1.11	%
Allowance for credit losses to total non-performing loans		81.03	%		96.40	%		217.76	%
Net loan charge-offs to average loans (1)		0.01	%		0.01	%		-0.02	%		0.01	%		-0.01	%

(1	)	Information is annualized.
(2	)	Net interest margin is presented on a fully tax equivalent basis, using a 21% federal tax rate.
(3	)	Non-GAAP financial measures. See the “Non-GAAP Financial Measures” section of this press release for a reconciliation to the most comparable GAAP equivalent.

LANDMARK BANCORP, INC. AND SUBSIDIARIES
Non-GAAP Finacials Measures (unaudited)

	As of or for the									As of or for the
	three months ended,									six months ended,
	June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands, except per share amounts)	2025			2025			2024			2025			2024

Non-GAAP financial ratio reconciliation:
Total non-interest expense	$	10,961		$	10,761		$	11,095		$	21,722		$	21,646
Less: foreclosure and real estate owned expense		49			(50	)		39			(1	)		(11	)
Less: amortization of other intangibles		(151	)		(152	)		(171	)		(303	)		(341	)
Less: valuation allowance on real estate held for sale		–			–			(979	)		–			(1,108	)
Adjusted non-interest expense (A)		10,859			10,559			9,984			21,418			20,186

Net interest income (B)		13,683			13,119			10,974			26,802			21,721

Non-interest income		3,626			3,358			3,720			6,984			7,120
Less: losses on sales of investment securities, net		–			2			–			2			–
Less: gains on sales of premises and equipment and foreclosed assets		(9	)		–			–			(9	)		9
Adjusted non-interest income (C)	$	3,617		$	3,360		$	3,720		$	6,977		$	7,129

Efficiency ratio (A/(B+C))		62.8	%		64.1	%		67.9	%		63.4	%		70.0	%
Non-interest income to total income (C/(B+C))		20.9	%		20.4	%		25.3	%		20.7	%		24.7	%

Total stockholders’ equity	$	148,376		$	142,651		$	128,254
Less: goodwill and other intangible assets		(34,652	)		(34,803	)		(35,277	)
Tangible equity (D)	$	113,724		$	107,848		$	92,977

Total assets	$	1,624,865		$	1,578,589		$	1,560,754
Less: goodwill and other intangible assets		(34,652	)		(34,803	)		(35,277	)
Tangible assets (E)	$	1,590,213		$	1,543,786		$	1,525,477

Tangible equity to tangible assets (D/E)		7.15	%		6.99	%		6.09	%

Shares outstanding at end of period (F)		5,783,312			5,778,610			5,743,044

Tangible book value per share (D/F)	$	19.66		$	18.66		$	16.19

The MIL Network –

July 25, 2025

MIL-OSI: Heritage Commerce Corp Reports Second Quarter and First Six Months of 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

SAN JOSE, Calif., July 24, 2025 (GLOBE NEWSWIRE) — Heritage Commerce Corp (Nasdaq: HTBK), (the “Company”), the holding company for Heritage Bank of Commerce (the “Bank”) today announced its financial results for the second quarter and six months ended June 30, 2025. All data are unaudited.

REPORTED SECOND QUARTER 2025 HIGHLIGHTS:

Net Income	Earnings Per Share	Pre-Provision Net Revenue (“PPNR”)⁽¹⁾	Fully Tax Equivalent (“FTE”) Net Interest Margin⁽¹⁾		Efficiency Ratio⁽¹⁾		Tangible Book Value Per Share⁽¹⁾

$6.4 million	$0.10	$9.4 million	3.54	%	80.23	%	$8.49

ADJUSTED SECOND QUARTER 2025 HIGHLIGHTS:⁽¹⁾


Net Income	Earnings Per Share	PPNR⁽¹⁾	FTE Net Interest Margin⁽¹⁾		Efficiency Ratio⁽¹⁾		Tangible Book Value Per Share⁽¹⁾


$13.0 million	$0.21	$18.6 million	3.54	%	61.01	%	$8.59

CEO COMMENTARY:
“We executed well in the second quarter, generating a higher level of net income and earnings per share, excluding significant charges primarily related to a legal settlement,” said Clay Jones, President and Chief Executive Officer. “We had positive trends in loan growth, an expansion in our net interest margin, and stable asset quality, while deposits declined due to seasonal outflows that we typically see in the second quarter. Our loan growth was well diversified across our portfolios. We continue to successfully add new clients by offering a superior banking experience and generate loan growth while maintaining our disciplined underwriting and pricing criteria.”

“We have a strong balance sheet with a high level of capital and liquidity and healthy asset quality, which provides a strong foundation to weather periods of economic volatility. We are well positioned to navigate the current environment and expect to see positive trends in loan growth, the net interest margin, and expense management,” said Mr. Jones.


LINKED-QUARTER BASIS	YEAR-OVER-YEAR

FINANCIAL HIGHLIGHTS:

• Total revenue of $47.8 million, an increase of 4%, or $1.7 million
• Noninterest expense of $38.3 million includes an accrual of $9.2 million for pre-tax charges primarily related to a legal settlement
• Reported net income of $6.4 million and earnings per share of $0.10, down 45% and 47%, from $11.6 million and $0.19, respectively
• Adjusted net income⁽¹⁾ of $13.0 million and adjusted earnings per share⁽¹⁾ of $0.21, both metrics up 11% from $11.6 million and $0.19, respectively

• Total revenue of $47.8 million, an increase of 15%, or $6.1 million
• Noninterest expense of $38.3 million includes an accrual of $9.2 million for pre-tax charges primarily related to a legal settlement
• Reported net income of $6.4 million and earnings per share of $0.10, down 31% and 33%, from $9.2 million and $0.15, respectively
• Adjusted net income⁽¹⁾ of $13.0 million and adjusted earnings per share⁽¹⁾ of $0.21, both metrics up 40% from $9.2 million and $0.15, respectively

FINANCIAL CONDITION:

• Loans held-for-investment (“HFI”) of $3.5 billion, up $47.4 million or 1%
• Total deposits of $4.6 billion, down $55.9 million, or 1%
• Loan to deposit ratio of 76.38%, up from 74.45%
• Total shareholders’ equity of $694.7 million, down $1.5 million

• Increase in loans HFI of $154.5 million, or 5%

• Increase in total deposits of $182.7 million, or 4%
• Loan to deposit ratio of 76.38%, up from 76.04%
• Increase in total shareholders’ equity of $15.5 million

CREDIT QUALITY:

• Nonperforming assets (“NPAs”) to total assets of 0.11% for both quarters
• NPAs to total assets of 0.11% for both quarters

• Classified assets to total assets of 0.69%, compared to 0.73%
• Classified assets to total assets of 0.69%, compared to 0.64%

KEY PERFORMANCE METRICS:

• FTE net interest margin⁽¹⁾ of 3.54%, an increase from 3.39%
• Common equity tier 1 capital ratio of 13.3%, compared to 13.6%
• Total capital ratio of 15.5%, compared to 15.9%
• Tangible common equity ratio⁽¹⁾ of 9.85%, an increase of 1% from 9.78%

• FTE net interest margin⁽¹⁾ of 3.54%, an increase from 3.26%
• Common equity tier 1 capital ratio of 13.3%, compared to 13.4%
• Total capital ratio of 15.5%, compared to 15.6%
• Tangible common equity ratio⁽¹⁾ of 9.85%, a decrease of 1% from 9.91%

^{(1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release. All references to “adjusted” operating metrics exclude the $9.2 million of charges primarily related to a legal settlement in the second quarter and first six months of 2025 as presented in the reconciliation of non-GAAP financial measures at the end of this press release.}

Results of Operations:

Reported net income was $6.4 million, or $0.10 per average diluted common share, for the second quarter of 2025. Adjusted net income⁽²⁾ was $13.0 million, or $0.21 per average diluted common share, for the second quarter of 2025, compared to $11.6 million, or $0.19 per average diluted common share, for the first quarter of 2025, and $9.2 million, or $0.15 per average diluted common share, for the second quarter of 2024. The annualized return on average assets was 0.47% and annualized return on average equity was 3.68% for the second quarter of 2025, compared to 0.85% and 6.81%, respectively, for the first quarter of 2025, and 0.71% and 5.50%, respectively, for the second quarter of 2024. The adjusted annualized return on average assets⁽²⁾ was 0.95% and adjusted annualized return on average tangible common equity⁽²⁾ was 9.92% for the second quarter of 2025, compared to 0.85% and 9.09%, respectively, for the first quarter ended of 2025, and 0.71% and 7.43%, respectively, for the second quarter of 2024.

Reported net income was $18.0 million, or $0.29 per average diluted common share, for the first six months of 2025. Adjusted net income⁽²⁾ was $24.6 million, or $0.40 per average diluted common share, for the first six months of 2025, compared to $19.4 million, or $0.32 per average diluted common share, for the first six months of 2024. The annualized return on average assets was 0.66% and annualized return on average equity was 5.23% for the six months ended June 30, 2025, compared to 0.75% and 5.79%, respectively, for the six months ended June 30, 2024. The adjusted annualized return on average assets⁽²⁾ was 0.90% and annualized return on average tangible common equity⁽²⁾ was 9.51% for the six months ended June 30, 2025, compared to 0.75% and 7.84%, respectively, for the six months ended June 30, 2024.

Total revenue, which is defined as net interest income before provision for credit losses on loans plus noninterest income, increased $1.7 million, or 4%, to $47.8 million for the second quarter of 2025, compared to $46.1 million for the first quarter of 2025, and increased $6.1 million, or 15%, from $41.7 million for the second quarter of 2024. Total revenue increased $9.9 million, or 12%, to $93.8 million for the first six months of 2025, compared to $83.9 million for the first six months of 2024.

For the second quarter and first six months of 2025, the Company’s reported PPNR⁽²⁾, which is defined as total revenue less adjusted noninterest expense⁽²⁾ was $9.4 million and $26.0 million, respectively. The adjusted PPNR⁽²⁾ was $18.6 million for the second quarter of 2025, compared to $16.6 million for the first quarter of 2025, and $13.5 million for the second quarter of 2024. For the six months of 2025, the Company’s adjusted PPNR⁽²⁾ was $35.2 million, compared to $28.1 million for the six months of 2024.

Net interest income totaled $44.8 million for the second quarter of 2025, an increase of $1.4 million, or 3%, compared to $43.4 million for the first quarter of 2025. The FTE net interest margin⁽²⁾ was 3.54% for the second quarter of 2025, an increase over 3.39% for the first quarter of 2025 primarily due to an increase in the average yields and average balances of loans and securities, partially offset by a decrease in the average balances of deposits resulting in a lower average balance of overnight funds.

Net interest income increased $5.9 million, or 15%, to $44.8 million, compared to $38.9 million for the second quarter of 2024. The FTE net interest margin⁽²⁾ increased from 3.23% for the second quarter of 2024 primarily due to lower rates paid on customer deposits, an increase in the average yields and average balances of loans and securities, and an increase in the average balance of deposits resulting in a higher average balance of overnight funds, partially offset by a lower average yield on overnight funds.

For the first six months of 2025, net interest income increased $9.8 million, or 12% to $88.2 million, compared to $78.4 million for the first six months of 2024. The FTE net interest margin⁽²⁾ increased 20 basis points to 3.47% for the first six months of 2025, from 3.27% for the first six months of 2024, primarily due to an increase in the average balances of average interest earning assets, and an increase in the average yields on loans and securities, partially offset by higher rates paid on client deposits and a lower yield on overnight funds.

We recorded a provision for credit losses on loans of $516,000 for the second quarter of 2025, compared to $274,000 for the first quarter of 2025, and $471,000 for the second quarter of 2024. There was a provision for credit losses on loans of $790,000 for the six months ended June 30, 2025, compared to $655,000 for the six months ended June 30, 2024. The increase in the provision for credit losses on loans for the second quarter and first six months of 2025 was primarily due to loan growth.

Total noninterest income increased to $3.0 million for the second quarter of 2025, compared to $2.7 million for the first quarter of 2025, and $2.9 million for the second quarter of 2024, primarily due to higher termination and facility fees. The increase in noninterest income in the second quarter of 2025 was partially offset by a $219,000 gain on proceeds from company-owned life insurance in the second quarter of 2024.

Total noninterest income increased 3% to $5.7 million for the first six months of 2025, compared to $5.5 million for the first six months of 2024, primarily due to higher termination and facility fees, partially offset by a $219,000 gain on proceeds from company-owned life insurance in the first six months of 2024.

⁽²⁾This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

Reported noninterest expense for the second quarter of 2025 and first six months of 2025 totaled $38.3 million and $67.8 million, respectively. During the second quarter of 2025, the Company recorded expenses of $9.2 million, primarily due to pre-tax charges related to the settlement of certain litigation matters, including the anticipated settlement of a previously disclosed class action and California Private Attorneys General Act (“PAGA”) lawsuit that alleged the violation of certain California wage-and-hour and related laws and regulations, and charges related to the planned closure of a Bank branch. Adjusted noninterest expense⁽³⁾ was $29.1 million, compared to $29.5 million for the first quarter of 2025, and $28.2 million for the second quarter of 2024. Adjusted noninterest expense⁽³⁾ for the first six months of 2025 was $58.6 million, compared to $55.7 million for the first six months of 2024.

Income tax expense decreased to $2.5 million for the second quarter of 2025, compared to $4.7 million for the first quarter of 2025, and $3.8 million for the second quarter of 2024, primarily due to lower pre-tax income. The effective tax rate for the second quarter of 2025 was 28.5%, compared to 28.8% for the first quarter of 2025, and 29.4% for the second quarter of 2024.

Income tax expense for the six months ended June 30, 2025 was $7.2 million, compared to $8.1 million for the six months ended June 30, 2024. The effective tax rate for six months ended June 30, 2025 was 28.7%, compared to 29.4% for the six months ended June 30, 2024.

The reported efficiency ratio⁽³⁾ for the second quarter and first six month of 2025 was 80.23% and 72.24%, respectively. The adjusted efficiency ratio⁽³⁾ improved to 61.01% for the second quarter of 2025, compared to 63.96% for the first quarter of 2025, as a result of higher total revenue. The adjusted efficiency ratio⁽³⁾ improved from 67.55% for the second quarter of 2024, primarily due to higher total revenue, partially offset by higher noninterest expense. The adjusted efficiency ratio⁽³⁾ improved to 62.45% for the first six months of 2025 from 66.44% for the first six months of 2024, primarily due to higher total revenue, partially offset by higher noninterest expense.

Full time equivalent employees were 350 at both June 30, 2025 and March 31, 2025, and 353 at June 30, 2024.

Financial Condition and Capital Management:

Total assets remained relatively flat at $5.5 billion at both June 30, 2025 and March 31, 2025. Total assets increased 4% from $5.3 billion at June 30, 2024, primarily due to an increase in deposits resulting in an increase in overnight funds, and an increase in loans.

Investment securities available-for-sale (at fair value) decreased to $307.0 million at June 30, 2025, compared to $371.0 million at March 31, 2025, primarily due to maturities and paydowns, partially offset by purchases. Investment securities available-for-sale totaled $273.0 million at June 30, 2024. The pre-tax unrealized loss on the securities available-for-sale portfolio was $448,000, or $396,000 net of taxes, which equaled less than 1% of total shareholders’ equity at June 30, 2025.

During the first six months of 2025, the Company purchased $87.2 million of agency mortgage-backed securities, $79.8 million of collateralized mortgage obligations, and $44.8 million of U.S. Treasury securities, for total purchases of $211.8 million in the available-for-sale portfolio. Securities purchased had a book yield of 4.82% and an average life of 4.55 years.

Investment securities held-to-maturity (at amortized cost, net of allowance for credit losses of ($16,000), totaled $561.2 million at June 30, 2025, compared to $576.7 million at March 31, 2025, and $621.2 million at June 30, 2024. The fair value of the securities held-to-maturity portfolio was $486.5 million at June 30, 2025. The pre-tax unrecognized loss on the securities held-to-maturity portfolio was $74.7 million, or $52.7 million net of taxes, which equaled 7.6% of total shareholders’ equity at June 30, 2025.

The unrealized and unrecognized losses in both the available-for-sale and held-to-maturity portfolios were due to higher interest rates at June 30, 2025 compared to when the securities were purchased. The issuers are of high credit quality and all principal amounts are expected to be repaid when the securities mature. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline.

Loans HFI, net of deferred costs and fees, increased $47.4 million, or 1% to $3.5 billion at June 30, 2025, compared to $3.5 billion at March 31, 2025, and increased $154.5 million, or 5%, from $3.4 billion at June 30, 2024. Loans HFI, excluding residential mortgages, increased $58.3 million, or 2% to $3.1 billion at June 30, 2025, compared to $3.0 billion at March 31, 2025, and increased $184.9 million, or 6%, from $2.9 billion at June 30, 2024.

Commercial and industrial line utilization was 32% at June 30, 2025, compared to 31% at both March 31, 2025, and June 30, 2024. Commercial real estate (“CRE”) loans totaled $2.0 billion at June 30, 2025, of which 31% were owner occupied and 31% were investor CRE loans. Owner occupied CRE loans totaled 31% at March 31, 2025 and 32% at June 30, 2024. Approximately 24% of the Company’s loan portfolio consisted of floating interest rate loans at both June 30, 2025 and March 31, 2025, compared to 27% at June 30, 2024.

At June 30, 2025, paydowns and maturities of investment securities and fixed interest rate loans maturing within one year totaled $311.0 million.

^{(3)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.}

Total deposits decreased $55.9 million, or 1%, to $4.6 billion at June 30, 2025, compared to $4.7 billion at March 31, 2025, primarily due to season outflows. Total deposits increased $182.7 million, or 4% from $4.4 billion at June 30, 2024.

The following table shows the Company’s deposit types as a percentage of total deposits at the dates indicated:


	June 30,		March 31,		June 30,
DEPOSITS TYPE % TO TOTAL DEPOSITS	2025		2025		2024
Demand, noninterest-bearing	25	%	24	%	27	%
Demand, interest-bearing	21	%	20	%	21	%
Savings and money market	28	%	29	%	25	%
Time deposits — under $250	1	%	1	%	1	%
Time deposits — $250 and over	4	%	5	%	4	%
Insured Cash Sweep (“ICS”)/Certificate of Deposit Registry
Service (“CDARS”) – interest-bearing demand, money
market and time deposits	21	%	21	%	22	%
Total deposits	100	%	100	%	100	%

The loan to deposit ratio was 76.38% at June 30, 2025, compared to 74.45% at March 31, 2025, and 76.04% at June 30, 2024.

The Company’s total available liquidity and borrowing capacity was $3.1 billion at June 30, 2025, compared to $3.2 billion at March 31, 2025, and $3.0 billion at June 30, 2024.

Total shareholders’ equity was $694.7 million at June 30, 2025, compared to $696.2 million at March 31, 2025, and $679.2 million at June 30, 2024. The change in shareholders’ equity at June 30, 2025 is primarily a function of net income and the decrease in the total accumulated other comprehensive loss, partially offset by dividends to stockholders.

Total accumulated other comprehensive loss of $5.0 million at June 30, 2025 was comprised of $2.5 million in actuarial losses associated with split dollar insurance contracts, $2.2 million in actuarial losses associated with the supplemental executive retirement plan, unrealized losses on securities available-for-sale of $396,000, and a $42,000 unrealized gain on interest-only strip from SBA loans.

The Company’s consolidated capital ratios exceeded regulatory guidelines and the Bank’s capital ratios exceeded regulatory guidelines under the prompt corrective action (“PCA”) regulatory guidelines for a well-capitalized financial institution, and the Basel III minimum regulatory requirements at June 30, 2025.

Reported tangible book value per share⁽⁴⁾ was $8.49 at June 30, 2025. Adjusted tangible book value per share⁽⁴⁾ was $8.59 at June 30, 2025, compared to $8.48 at March 31, 2025, and $8.22 at June 30, 2024.

The Company is authorized to repurchase up to $15.0 million of the Company’s shares of its issued and outstanding common stock under its share repurchase program authorized by the Board of Directors in July 2024. During the second quarter of 2025, the Company repurchased 207,989 shares of its common stock with a weighted average price of $9.19 for a total of $1.9 million. The remaining capacity under this share repurchase program was $13.1 million at June 30, 2025. In July 2025, the Company’s Board of Directors extended the program for one year, expiring on July 31, 2026.

Credit Quality:
The provision for credit losses on loans totaled $516,000 for the second quarter of 2025, compared to a $274,000 provision for credit losses on loans for the first quarter of 2025 and a provision for credit losses on loans of $471,000 for the second quarter of 2024. Net charge-offs totaled $145,000 for the second quarter of 2025, compared to $965,000 for the first quarter of 2025, and $405,000 for the second quarter of 2024.

The provision for credit losses on loans totaled $790,000 for the first six months of 2025, compared to a $655,000 provision for credit losses on loans for the first six months of 2024. Net charge-offs totaled $1.1 million for the first six months of 2025, compared to $659,000 for the first six months of 2024.

The allowance for credit losses on loans (“ACLL”) at June 30, 2025 was $48.6 million, or 1.38% of total loans, representing 787% of total nonperforming loans. The ACLL at March 31, 2025 was $48.3 million, or 1.38% of total loans, representing 765% of total nonperforming loans. The ACLL at June 30, 2024 was $48.0 million, or 1.42% of total loans, representing 795% of total nonperforming loans. The reduction to the allowance for credit on losses on loans reflects our credit assessment and economic factors.

NPAs were $6.2 million at June 30, 2025, compared to $6.3 million at March 31, 2025, and $6.0 million at June 30, 2024. There were no foreclosed assets on the balance sheet at June 30, 2025, March 31, 2025, or June 30, 2024. There were no Shared National Credits (“SNCs”) or material purchased participations included in NPAs or total loans at June 30, 2025, March 31, 2025, or June 30, 2024.

Classified assets totaled $37.5 million, or 0.69% of total assets, at June 30, 2025, compared to $40.0 million, or 0.73% of total assets, at March 31, 2025, and $33.6 million, or 0.64% of total assets, at June 30, 2024.

^{(4)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.}

Heritage Commerce Corp, a bank holding company established in October 1997, is the parent company of Heritage Bank of Commerce, established in 1994 and headquartered in San Jose, CA with full-service branches in Danville, Fremont, Gilroy, Hollister, Livermore, Los Altos, Los Gatos, Morgan Hill, Oakland, Palo Alto, Pleasanton, Redwood City, San Francisco, San Jose, San Mateo, San Rafael, and Walnut Creek. Heritage Bank of Commerce is an SBA Preferred Lender. Bay View Funding, a subsidiary of Heritage Bank of Commerce, is based in San Jose, CA and provides business-essential working capital factoring financing to various industries throughout the United States. For more information, please visit www.heritagecommercecorp.com. The contents of our website are not incorporated into, and do not form a part of, this release or of our filings with the Securities and Exchange Commission.

Reclassifications

During the first quarter of 2025, we reclassified Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock dividends from interest income to noninterest income and the related average asset balances were reclassified from interest earning assets to other assets on the “Net Interest Income and Net Interest Margin” tables. The amounts for the prior periods were reclassified to conform to the current presentation. These reclassifications did not affect previously reported net income or shareholders’ equity.

Non-GAAP Financial Measures

Financial results are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. These measures include “adjusted” operating metrics that have been adjusted to exclude notable expenses incurred in the second quarter as well as other performance measures and ratios adjusted for notable items. Management believes these non-GAAP financial measures enhance comparability between periods and in some instances are common in the banking industry. These non-GAAP financial measures should be supplemental to primary GAAP financial measures and should not be read in isolation or relied upon as a substitute for primary GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is presented in the tables at the end of this press release under “Reconciliation of Non-GAAP Financial Measures.”

Forward-Looking Statement Disclaimer

Certain matters discussed in this press release constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are inherently uncertain in that they reflect plans and expectations for future events. These statements may include, among other things, those relating to the Company’s future financial performance, plans and objectives regarding future events, expectations regarding changes in interest rates and market conditions, projected cash flows of our investment securities portfolio, the performance of our loan portfolio, loan growth, expenses, net interest margin, estimated net interest income resulting from a shift in interest rates, expectation of high credit quality issuers ability to repay, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events. Any statements that reflect our belief about, confidence in, or expectations for future events, performance or condition should be considered forward-looking statements. Readers should not construe these statements as assurances of a given level of performance, nor as promises that we will take actions that we currently expect to take. All statements are subject to various risks and uncertainties, many of which are outside our control and some of which may fall outside our ability to predict or anticipate. Accordingly, our actual results may differ materially from our projected results, and we may take actions or experience events that we do not currently expect. Risks and uncertainties that could cause our financial performance to differ materially from our goals, plans, expectations and projections expressed in forward-looking statements include those set forth in our filings with the Securities and Exchange Commission, Item 1A of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and include: (i) cybersecurity risks that may affect us directly or may impact us indirectly by virtue of their effects on our clients, markets or vendors, including our ability to identify and address cybersecurity risks, including those posed by the increasing use of artificial intelligence (such as, but not limited to, ransomware, data security breaches, “denial of service” attacks, “hacking” and identity theft) affecting us, our clients, and our third-party vendors and service providers; (ii) events that affect our ability to attract, recruit, and retain qualified officers and other personnel to implement our strategic plan, and that enable current and future personnel to protect and develop our relationships with clients, and to promote our business, results of operations and growth prospects; (iii) media items and consumer confidence as those factors affect our clients’ confidence in the banking system generally and in our bank specifically; (iv) adequacy of our risk management framework, disclosure controls and procedures and internal control over financial reporting; (v) the effects of recent wildfires affecting Southern California, which have affected certain clients and certain loans secured by mortgages in Los Angeles County, and which are affecting or may, in the future, affect other clients in those and other markets throughout California; (vi) market, geographic and sociopolitical factors that arise by virtue of the fact that we operate primarily in the general San Francisco Bay Area of Northern California; (vii) risks of geographic concentration of our client base, our loans, and the collateral securing our loans, as those clients and assets may be particularly subject to natural disasters and to events and conditions that directly or indirectly affect those regions, including the particular risks of natural disasters (including earthquakes, fires, and flooding) and other events that disproportionately affect that region; (viii) political events that have accompanied or that may in the future accompany or result from recent political changes, particularly including sociopolitical events and conditions that result from political conflicts and law enforcement activities that may adversely affect our markets or our clients; (ix) our ability to estimate accurately, and to establish adequate reserves against, the risk of loss associated with our loan and lease portfolios and our factoring business; (x) inflationary pressures and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans to clients, whether held in the portfolio or in the secondary market; (xi) factors that affect the value and liquidity of our investment portfolios, particularly the values of securities available-for-sale; (xii) factors that affect our liquidity and our ability to meet client demands for withdrawals from deposit accounts and undrawn lines of credit, including our cash on hand and the availability of funds from our own lines of credit; (xiii) increased capital requirements for our continual growth or as imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; (xiv) the expense and uncertain resolution of litigation matters whether occurring in the ordinary course of business or otherwise, particularly including but not limited to the effects of recent and ongoing developments in California labor and employment laws, regulations and court decisions; (xv) operational issues stemming from, and/or capital spending necessitated by, the potential need to adapt to industry changes in information technology systems, on which we are highly dependent; and (xvi) our success in managing the risks involved in the foregoing factors.

Member FDIC

For additional information, email:
InvestorRelations@herbank.com


	For the Quarter Ended:									Percent Change From:						For the Six Months Ended:
CONSOLIDATED INCOME STATEMENTS	June 30,			March 31,			June 30,			March 31,			June 30,			June 30,			June 30,			Percent
(in $000’s, unaudited)	2025			2025			2024			2025			2024			2025			2024			Change
Interest income	$	63,025		$	61,832		$	58,489		2		%	8		%	$	124,857		$	115,450		8		%
Interest expense		18,220			18,472			19,622		(1	)	%	(7	)	%		36,692			37,080		(1	)	%
Net interest income before provision
for credit losses on loans		44,805			43,360			38,867		3		%	15		%		88,165			78,370		12		%
Provision for credit losses on loans		516			274			471		88		%	10		%		790			655		21		%
Net interest income after provision
for credit losses on loans		44,289			43,086			38,396		3		%	15		%		87,375			77,715		12		%
Noninterest income:
Service charges and fees on deposit
accounts		929			892			891		4		%	4		%		1,821			1,768		3		%
FHLB and FRB stock dividends		584			590			588		(1	)	%	(1	)	%		1,174			1,178
Increase in cash surrender value of
life insurance		548			538			521		2		%	5		%		1,086			1,039		5		%
Termination fees		227			87			100		161		%	127		%		314			113		178		%
Gain on sales of SBA loans		87			98			76		(11	)	%	14		%		185			254		(27	)	%
Servicing income		61			82			90		(26	)	%	(32	)	%		143			180		(21	)	%
Gain on proceeds from company-owned
life insurance		—			—			219		N/A			(100	)	%		—			219		(100	)	%
Other		541			409			379		32		%	43		%		950			750		27		%
Total noninterest income		2,977			2,696			2,864		10		%	4		%		5,673			5,501		3		%
Noninterest expense:
Salaries and employee benefits		16,227			16,575			15,794		(2	)	%	3		%		32,802			31,303		5		%
Occupancy and equipment		2,525			2,534			2,689		0		%	(6	)	%		5,059			5,132		(1	)	%
Professional fees		1,819			1,580			1,072		15		%	70		%		3,399			2,399		42		%
Other		17,764			8,767			8,633		103		%	106		%		26,531			16,890		57		%
Total noninterest expense		38,335			29,456			28,188		30		%	36		%		67,791			55,724		22		%
Income before income taxes		8,931			16,326			13,072		(45	)	%	(32	)	%		25,257			27,492		(8	)	%
Income tax expense		2,542			4,700			3,838		(46	)	%	(34	)	%		7,242			8,092		(11	)	%
Net income	$	6,389		$	11,626		$	9,234		(45	)	%	(31	)	%	$	18,015		$	19,400		(7	)	%

PER COMMON SHARE DATA
(unaudited)
Basic earnings per share	$	0.10		$	0.19		$	0.15		(47	)	%	(33	)	%	$	0.29		$	0.32		(9	)	%
Diluted earnings per share	$	0.10		$	0.19		$	0.15		(47	)	%	(33	)	%	$	0.29		$	0.32		(9	)	%
Weighted average shares outstanding – basic		61,508,180			61,479,579			61,279,914		0		%	0		%		61,493,880			61,233,269		0		%
Weighted average shares outstanding – diluted		61,624,600			61,708,361			61,438,088		0		%	0		%		61,664,942			61,446,484		0		%
Common shares outstanding at period-end		61,446,763			61,611,121			61,292,094		0		%	0		%		61,446,763			61,292,094		0		%
Dividend per share	$	0.13		$	0.13		$	0.13		0		%	0		%	$	0.26		$	0.26		0		%
Book value per share	$	11.31		$	11.30		$	11.08		0		%	2		%	$	11.31		$	11.08		2		%
Tangible book value per share⁽¹⁾	$	8.49		$	8.48		$	8.22		0		%	3		%	$	8.49		$	8.22		3		%

KEY PERFORMANCE METRICS
(in $000’s, unaudited)
Annualized return on average equity		3.68	%		6.81	%		5.50	%	(46	)	%	(33	)	%		5.23	%		5.79	%	(10	)	%
Annualized return on average tangible
common equity⁽¹⁾		4.89	%		9.09	%		7.43	%	(46	)	%	(34	)	%		6.97	%		7.84	%	(11	)	%
Annualized return on average assets		0.47	%		0.85	%		0.71	%	(45	)	%	(34	)	%		0.66	%		0.75	%	(12	)	%
Annualized return on average tangible assets⁽¹⁾		0.48	%		0.88	%		0.74	%	(45	)	%	(35	)	%		0.68	%		0.78	%	(13	)	%
Net interest margin (FTE)⁽¹⁾		3.54	%		3.39	%		3.23	%	4		%	10		%		3.47	%		3.27	%	6		%
Total revenue	$	47,782		$	46,056		$	41,731		4		%	15		%		93,838			83,871		12		%
Pre-provision net revenue⁽¹⁾	$	9,447		$	16,600		$	13,543		(43	)	%	(30	)	%		26,047			28,147		(7	)	%
Efficiency ratio⁽¹⁾		80.23	%		63.96	%		67.55	%	25		%	19		%		72.24	%		66.44	%	9		%

AVERAGE BALANCES
(in $000’s, unaudited)
Average assets	$	5,458,420		$	5,559,896		$	5,213,171		(2	)	%	5		%	$	5,508,878		$	5,195,903		6		%
Average tangible assets⁽¹⁾	$	5,284,972		$	5,386,001		$	5,037,673		(2	)	%	5		%	$	5,335,207		$	5,020,134		6		%
Average earning assets	$	5,087,089		$	5,188,317		$	4,840,670		(2	)	%	5		%	$	5,137,424		$	4,825,587		6		%
Average loans held-for-sale	$	2,250		$	2,290		$	1,503		(2	)	%	50		%	$	2,270		$	2,126		7		%
Average loans held-for-investment	$	3,504,518		$	3,429,014		$	3,328,358		2		%	5		%	$	3,466,975		$	3,312,799		5		%
Average deposits	$	4,618,007		$	4,717,517		$	4,394,545		(2	)	%	5		%	$	4,667,487		$	4,377,347		7		%
Average demand deposits – noninterest-bearing	$	1,146,494		$	1,167,330		$	1,127,145		(2	)	%	2		%	$	1,156,854		$	1,152,111		0		%
Average interest-bearing deposits	$	3,471,513		$	3,550,187		$	3,267,400		(2	)	%	6		%	$	3,510,633		$	3,225,236		9		%
Average interest-bearing liabilities	$	3,511,237		$	3,589,872		$	3,306,972		(2	)	%	6		%	$	3,550,338		$	3,264,788		9		%
Average equity	$	697,016		$	692,733		$	675,108		1		%	3		%	$	694,886		$	673,700		3		%
Average tangible common equity⁽¹⁾	$	523,568		$	518,838		$	499,610		1		%	5		%	$	521,215		$	497,931		5		%

^{(1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.}


	For the Quarter Ended:
CONSOLIDATED INCOME STATEMENTS	June 30,			March 31,			December 31,			September 30,			June 30,
(in $000’s, unaudited)	2025			2025			2024			2024			2024
Interest income	$	63,025		$	61,832		$	64,043		$	60,852		$	58,489
Interest expense		18,220			18,472			20,448			21,523			19,622
Net interest income before provision
for credit losses on loans		44,805			43,360			43,595			39,329			38,867
Provision for credit losses on loans		516			274			1,331			153			471
Net interest income after provision
for credit losses on loans		44,289			43,086			42,264			39,176			38,396
Noninterest income:
Service charges and fees on deposit
accounts		929			892			885			908			891
FHLB and FRB stock dividends		584			590			590			586			588
Increase in cash surrender value of
life insurance		548			538			528			530			521
Termination fees		227			87			18			46			100
Gain on sales of SBA loans		87			98			125			94			76
Servicing income		61			82			77			108			90
Gain on proceeds from company-owned
life insurance		—			—			—			—			219
Other		541			409			552			554			379
Total noninterest income		2,977			2,696			2,775			2,826			2,864
Noninterest expense:
Salaries and employee benefits		16,227			16,575			16,976			15,673			15,794
Occupancy and equipment		2,525			2,534			2,495			2,599			2,689
Professional fees		1,819			1,580			1,711			1,306			1,072
Other		17,764			8,767			9,122			7,977			8,633
Total noninterest expense		38,335			29,456			30,304			27,555			28,188
Income before income taxes		8,931			16,326			14,735			14,447			13,072
Income tax expense		2,542			4,700			4,114			3,940			3,838
Net income	$	6,389		$	11,626		$	10,621		$	10,507		$	9,234

PER COMMON SHARE DATA
(unaudited)
Basic earnings per share	$	0.10		$	0.19		$	0.17		$	0.17		$	0.15
Diluted earnings per share	$	0.10		$	0.19		$	0.17		$	0.17		$	0.15
Weighted average shares outstanding – basic		61,508,180			61,479,579			61,320,505			61,295,877			61,279,914
Weighted average shares outstanding – diluted		61,624,600			61,708,361			61,679,735			61,546,157			61,438,088
Common shares outstanding at period-end		61,446,763			61,611,121			61,348,095			61,297,344			61,292,094
Dividend per share	$	0.13		$	0.13		$	0.13		$	0.13		$	0.13
Book value per share	$	11.31		$	11.30		$	11.24		$	11.18		$	11.08
Tangible book value per share⁽¹⁾	$	8.49		$	8.48		$	8.41		$	8.33		$	8.22

KEY PERFORMANCE METRICS
(in $000’s, unaudited)
Annualized return on average equity		3.68	%		6.81	%		6.16	%		6.14	%		5.50	%
Annualized return on average tangible
common equity⁽¹⁾		4.89	%		9.09	%		8.25	%		8.27	%		7.43	%
Annualized return on average assets		0.47	%		0.85	%		0.75	%		0.78	%		0.71	%
Annualized return on average tangible assets⁽¹⁾		0.48	%		0.88	%		0.78	%		0.81	%		0.74	%
Net interest margin (FTE)⁽¹⁾		3.54	%		3.39	%		3.32	%		3.15	%		3.23	%
Total revenue	$	47,782		$	46,056		$	46,370		$	42,155		$	41,731
Pre-provision net revenue⁽¹⁾	$	9,447		$	16,600		$	16,066		$	14,600		$	13,543
Efficiency ratio⁽¹⁾		80.23	%		63.96	%		65.35	%		65.37	%		67.55	%

AVERAGE BALANCES
(in $000’s, unaudited)
Average assets	$	5,458,420		$	5,559,896		$	5,607,840		$	5,352,067		$	5,213,171
Average tangible assets⁽¹⁾	$	5,284,972		$	5,386,001		$	5,433,439		$	5,177,114		$	5,037,673
Average earning assets	$	5,087,089		$	5,188,317		$	5,235,986		$	4,980,082		$	4,840,670
Average loans held-for-sale	$	2,250		$	2,290		$	2,260		$	1,493		$	1,503
Average loans held-for-investment	$	3,504,518		$	3,429,014		$	3,388,729		$	3,359,647		$	3,328,358
Average deposits	$	4,618,007		$	4,717,517		$	4,771,491		$	4,525,946		$	4,394,545
Average demand deposits – noninterest-bearing	$	1,146,494		$	1,167,330		$	1,222,393		$	1,172,304		$	1,127,145
Average interest-bearing deposits	$	3,471,513		$	3,550,187		$	3,549,098		$	3,353,642		$	3,267,400
Average interest-bearing liabilities	$	3,511,237		$	3,589,872		$	3,588,755		$	3,393,264		$	3,306,972
Average equity	$	697,016		$	692,733		$	686,263		$	680,404		$	675,108
Average tangible common equity⁽¹⁾	$	523,568		$	518,838		$	511,862		$	505,451		$	499,610

^{(1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.}


	End of Period:									Percent Change From:
CONSOLIDATED BALANCE SHEETS	June 30,			March 31,			June 30,			March 31,			June 30,
(in $000’s, unaudited)	2025			2025			2024			2025			2024
ASSETS
Cash and due from banks	$	55,360		$	44,281		$	37,497		25		%	48		%
Other investments and interest-bearing deposits
in other financial institutions		666,432			700,769			610,763		(5	)	%	9		%
Securities available-for-sale, at fair value		307,035			370,976			273,043		(17	)	%	12		%
Securities held-to-maturity, at amortized cost		561,205			576,718			621,178		(3	)	%	(10	)	%
Loans – held-for-sale – SBA, including deferred costs		1,156			1,884			1,899		(39	)	%	(39	)	%
Loans – held-for-investment:
Commercial		492,231			489,241			477,929		1		%	3		%
Real estate:
CRE – owner occupied		627,810			616,825			594,504		2		%	6		%
CRE – non-owner occupied		1,390,419			1,363,275			1,283,323		2		%	8		%
Land and construction		149,460			136,106			125,374		10		%	19		%
Home equity		120,763			119,138			126,562		1		%	(5	)	%
Multifamily		285,016			284,510			268,968		0		%	6		%
Residential mortgages		454,419			465,330			484,809		(2	)	%	(6	)	%
Consumer and other		14,661			12,741			18,758		15		%	(22	)	%
Loans		3,534,779			3,487,166			3,380,227		1		%	5		%
Deferred loan fees, net		(446	)		(268	)		(434	)	66		%	3		%
Total loans – held-for-investment, net of deferred fees		3,534,333			3,486,898			3,379,793		1		%	5		%
Allowance for credit losses on loans		(48,633	)		(48,262	)		(47,954	)	1		%	1		%
Loans, net		3,485,700			3,438,636			3,331,839		1		%	5		%
Company-owned life insurance		82,296			81,749			80,153		1		%	3		%
Premises and equipment, net		9,765			9,772			10,310		0		%	(5	)	%
Goodwill		167,631			167,631			167,631		0		%	0		%
Other intangible assets		5,532			5,986			7,521		(8	)	%	(26	)	%
Accrued interest receivable and other assets		125,125			115,853			121,190		8		%	3		%
Total assets	$	5,467,237		$	5,514,255		$	5,263,024		(1	)	%	4		%

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand, noninterest-bearing	$	1,151,242		$	1,128,593		$	1,187,320		2		%	(3	)	%
Demand, interest-bearing		955,504			949,068			928,246		1		%	3		%
Savings and money market		1,320,142			1,353,293			1,126,520		(2	)	%	17		%
Time deposits – under $250		35,356			37,592			39,046		(6	)	%	(9	)	%
Time deposits – $250 and over		210,818			213,357			203,886		(1	)	%	3		%
ICS/CDARS – interest-bearing demand, money market
and time deposits		954,272			1,001,365			959,592		(5	)	%	(1	)	%
Total deposits		4,627,334			4,683,268			4,444,610		(1	)	%	4		%
Subordinated debt, net of issuance costs		39,728			39,691			39,577		0		%	0		%
Accrued interest payable and other liabilities		105,471			95,106			99,638		11		%	6		%
Total liabilities		4,772,533			4,818,065			4,583,825		(1	)	%	4		%

Shareholders’ Equity:
Common stock		509,888			511,596			508,343		0		%	0		%
Retained earnings		189,794			191,401			182,571		(1	)	%	4		%
Accumulated other comprehensive loss		(4,978	)		(6,807	)		(11,715	)	(27	)	%	(58	)	%
Total shareholders’ equity		694,704			696,190			679,199		0		%	2		%
Total liabilities and shareholders’ equity	$	5,467,237		$	5,514,255		$	5,263,024		(1	)	%	4		%


	End of Period:
CONSOLIDATED BALANCE SHEETS	June 30,			March 31,			December 31,			September 30,			June 30,
(in $000’s, unaudited)	2025			2025			2024			2024			2024
ASSETS
Cash and due from banks	$	55,360		$	44,281		$	29,864		$	49,722		$	37,497
Other investments and interest-bearing deposits
in other financial institutions		666,432			700,769			938,259			906,588			610,763
Securities available-for-sale, at fair value		307,035			370,976			256,274			237,612			273,043
Securities held-to-maturity, at amortized cost		561,205			576,718			590,016			604,193			621,178
Loans – held-for-sale – SBA, including deferred costs		1,156			1,884			2,375			1,649			1,899
Loans – held-for-investment:
Commercial		492,231			489,241			531,350			481,266			477,929
Real estate:
CRE – owner occupied		627,810			616,825			601,636			602,062			594,504
CRE – non-owner occupied		1,390,419			1,363,275			1,341,266			1,310,578			1,283,323
Land and construction		149,460			136,106			127,848			125,761			125,374
Home equity		120,763			119,138			127,963			124,090			126,562
Multifamily		285,016			284,510			275,490			273,103			268,968
Residential mortgages		454,419			465,330			471,730			479,524			484,809
Consumer and other		14,661			12,741			14,837			14,179			18,758
Loans		3,534,779			3,487,166			3,492,120			3,410,563			3,380,227
Deferred loan fees, net		(446	)		(268	)		(183	)		(327	)		(434	)
Total loans – held-for-investment, net of deferred fees		3,534,333			3,486,898			3,491,937			3,410,236			3,379,793
Allowance for credit losses on loans		(48,633	)		(48,262	)		(48,953	)		(47,819	)		(47,954	)
Loans, net		3,485,700			3,438,636			3,442,984			3,362,417			3,331,839
Company-owned life insurance		82,296			81,749			81,211			80,682			80,153
Premises and equipment, net		9,765			9,772			10,140			10,398			10,310
Goodwill		167,631			167,631			167,631			167,631			167,631
Other intangible assets		5,532			5,986			6,439			6,966			7,521
Accrued interest receivable and other assets		125,125			115,853			119,813			123,738			121,190
Total assets	$	5,467,237		$	5,514,255		$	5,645,006		$	5,551,596		$	5,263,024

LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand, noninterest-bearing	$	1,151,242		$	1,128,593		$	1,214,192		$	1,272,139		$	1,187,320
Demand, interest-bearing		955,504			949,068			936,587			913,910			928,246
Savings and money market		1,320,142			1,353,293			1,325,923			1,309,676			1,126,520
Time deposits – under $250		35,356			37,592			38,988			39,060			39,046
Time deposits – $250 and over		210,818			213,357			206,755			196,945			203,886
ICS/CDARS – interest-bearing demand, money market
and time deposits		954,272			1,001,365			1,097,586			997,803			959,592
Total deposits		4,627,334			4,683,268			4,820,031			4,729,533			4,444,610
Subordinated debt, net of issuance costs		39,728			39,691			39,653			39,615			39,577
Accrued interest payable and other liabilities		105,471			95,106			95,595			97,096			99,638
Total liabilities		4,772,533			4,818,065			4,955,279			4,866,244			4,583,825

Shareholders’ Equity:
Common stock		509,888			511,596			510,070			509,134			508,343
Retained earnings		189,794			191,401			187,762			185,110			182,571
Accumulated other comprehensive loss		(4,978	)		(6,807	)		(8,105	)		(8,892	)		(11,715	)
Total shareholders’ equity		694,704			696,190			689,727			685,352			679,199
Total liabilities and shareholders’ equity	$	5,467,237		$	5,514,255		$	5,645,006		$	5,551,596		$	5,263,024


	At or For the Quarter Ended:									Percent Change From:
CREDIT QUALITY DATA	June 30,			March 31,			June 30,			March 31,			June 30,
(in $000’s, unaudited)	2025			2025			2024			2025			2024
Nonaccrual loans – held-for-investment:
Land and construction loans	$	4,198		$	4,793		$	4,774		(12	)	%	(12	)	%
Home equity and other loans		728			927			108		(21	)	%	574		%
Residential mortgages		607			—			—		N/A			N/A
Commercial loans		491			324			900		52		%	(45	)	%
CRE loans		31			—			—		N/A			N/A
Total nonaccrual loans – held-for-investment:		6,055			6,044			5,782		0		%	5		%
Loans over 90 days past due
and still accruing		123			268			248		(54	)	%	(50	)	%
Total nonperforming loans		6,178			6,312			6,030		(2	)	%	2		%
Foreclosed assets		—			—			—		N/A			N/A
Total nonperforming assets	$	6,178		$	6,312		$	6,030		(2	)	%	2		%
Net charge-offs during the quarter	$	145		$	965		$	405		(85	)	%	(64	)	%
Provision for credit losses on loans during the quarter	$	516		$	274		$	471		88		%	10		%
Allowance for credit losses on loans	$	48,633		$	48,262		$	47,954		1		%	1		%
Classified assets	$	37,525		$	40,034		$	33,605		(6	)	%	12		%
Allowance for credit losses on loans to total loans		1.38	%		1.38	%		1.42	%	0		%	(3	)	%
Allowance for credit losses on loans to total nonperforming loans		787.20	%		764.61	%		795.26	%	3		%	(1	)	%
Nonperforming assets to total assets		0.11	%		0.11	%		0.11	%	0		%	0		%
Nonperforming loans to total loans		0.17	%		0.18	%		0.18	%	(6	)	%	(6	)	%
Classified assets to Heritage Commerce Corp
Tier 1 capital plus allowance for credit losses on loans		7	%		7	%		6	%	0		%	17		%
Classified assets to Heritage Bank of Commerce
Tier 1 capital plus allowance for credit losses on loans		6	%		7	%		6	%	(14	)	%	0		%

OTHER PERIOD-END STATISTICS
(in $000’s, unaudited)
Heritage Commerce Corp:
Tangible common equity ⁽¹⁾	$	521,541		$	522,573		$	504,047		0		%	3		%
Shareholders’ equity / total assets		12.71	%		12.63	%		12.91	%	1		%	(2	)	%
Tangible common equity / tangible assets ⁽¹⁾		9.85	%		9.78	%		9.91	%	1		%	(1	)	%
Loan to deposit ratio		76.38	%		74.45	%		76.04	%	3		%	0		%
Noninterest-bearing deposits / total deposits		24.88	%		24.10	%		26.71	%	3		%	(7	)	%
Total capital ratio		15.5	%		15.9	%		15.6	%	(3	)	%	(1	)	%
Tier 1 capital ratio		13.3	%		13.6	%		13.4	%	(2	)	%	(1	)	%
Common Equity Tier 1 capital ratio		13.3	%		13.6	%		13.4	%	(2	)	%	(1	)	%
Tier 1 leverage ratio		9.9	%		9.8	%		10.2	%	1		%	(3	)	%
Heritage Bank of Commerce:
Tangible common equity / tangible assets ⁽¹⁾		10.28	%		10.15	%		10.28	%	1		%	0		%
Total capital ratio		15.1	%		15.4	%		15.1	%	(2	)	%	0		%
Tier 1 capital ratio		13.8	%		14.1	%		13.9	%	(2	)	%	(1	)	%
Common Equity Tier 1 capital ratio		13.8	%		14.1	%		13.9	%	(2	)	%	(1	)	%
Tier 1 leverage ratio		10.4	%		10.2	%		10.6	%	2		%	(2	)	%

^{(1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.}


	At or For the Quarter Ended:
CREDIT QUALITY DATA	June 30,			March 31,			December 31,			September 30,			June 30,
(in $000’s, unaudited)	2025			2025			2024			2024			2024
Nonaccrual loans – held-for-investment:
Land and construction loans	$	4,198		$	4,793		$	5,874		$	5,862		$	4,774
Home equity and other loans		728			927			290			84			108
Residential mortgages		607			—			—			—			—
Commercial loans		491			324			1,014			752			900
CRE loans		31			—			—			—			—
Total nonaccrual loans – held-for-investment:		6,055			6,044			7,178			6,698			5,782
Loans over 90 days past due
and still accruing		123			268			489			460			248
Total nonperforming loans		6,178			6,312			7,667			7,158			6,030
Foreclosed assets		—			—			—			—			—
Total nonperforming assets	$	6,178		$	6,312		$	7,667		$	7,158		$	6,030
Net charge-offs during the quarter	$	145		$	965		$	197		$	288		$	405
Provision for credit losses on loans during the quarter	$	516		$	274		$	1,331		$	153		$	471
Allowance for credit losses on loans	$	48,633		$	48,262		$	48,953		$	47,819		$	47,954
Classified assets	$	37,525		$	40,034		$	41,661		$	32,609		$	33,605
Allowance for credit losses on loans to total loans		1.38	%		1.38	%		1.40	%		1.40	%		1.42	%
Allowance for credit losses on loans to total nonperforming loans		787.20	%		764.61	%		638.49	%		668.05	%		795.26	%
Nonperforming assets to total assets		0.11	%		0.11	%		0.14	%		0.13	%		0.11	%
Nonperforming loans to total loans		0.17	%		0.18	%		0.22	%		0.21	%		0.18	%
Classified assets to Heritage Commerce Corp
Tier 1 capital plus allowance for credit losses on loans		7	%		7	%		7	%		6	%		6	%
Classified assets to Heritage Bank of Commerce
Tier 1 capital plus allowance for credit losses on loans		6	%		7	%		7	%		6	%		6	%

OTHER PERIOD-END STATISTICS
(in $000’s, unaudited)
Heritage Commerce Corp:
Tangible common equity ⁽¹⁾	$	521,541		$	522,573		$	515,657		$	510,755		$	504,047
Shareholders’ equity / total assets		12.71	%		12.63	%		12.22	%		12.35	%		12.91	%
Tangible common equity / tangible assets ⁽¹⁾		9.85	%		9.78	%		9.43	%		9.50	%		9.91	%
Loan to deposit ratio		76.38	%		74.45	%		72.45	%		72.11	%		76.04	%
Noninterest-bearing deposits / total deposits		24.88	%		24.10	%		25.19	%		26.90	%		26.71	%
Total capital ratio		15.5	%		15.9	%		15.6	%		15.6	%		15.6	%
Tier 1 capital ratio		13.3	%		13.6	%		13.4	%		13.4	%		13.4	%
Common Equity Tier 1 capital ratio		13.3	%		13.6	%		13.4	%		13.4	%		13.4	%
Tier 1 leverage ratio		9.9	%		9.8	%		9.6	%		10.0	%		10.2	%
Heritage Bank of Commerce:
Tangible common equity / tangible assets ⁽¹⁾		10.28	%		10.15	%		9.79	%		9.86	%		10.28	%
Total capital ratio		15.1	%		15.4	%		15.1	%		15.1	%		15.1	%
Tier 1 capital ratio		13.8	%		14.1	%		13.9	%		13.9	%		13.9	%
Common Equity Tier 1 capital ratio		13.8	%		14.1	%		13.9	%		13.9	%		13.9	%
Tier 1 leverage ratio		10.4	%		10.2	%		10.0	%		10.4	%		10.6	%

^{(1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.}


	For the Quarter Ended								For the Quarter Ended
	June 30, 2025								March 31, 2025
				Interest			Average					Interest			Average
NET INTEREST INCOME AND NET INTEREST MARGIN	Average			Income/			Yield/		Average			Income/			Yield/
(in $000’s, unaudited)	Balance			Expense			Rate		Balance			Expense			Rate
Assets:
Loans, core bank	$	3,020,534			41,738		5.54	%	$	2,945,072		$	39,758		5.47	%
Prepayment fees		—			473		0.06	%		—			224		0.03	%
Bay View Funding factored receivables		67,756			3,347		19.81	%		60,250			2,942		19.80	%
Purchased residential mortgages		420,280			3,548		3.39	%		427,963			3,597		3.41	%
Loan fair value mark / accretion		(1,802	)		172		0.02	%		(1,981	)		181		0.02	%
Loans, gross ⁽¹⁾⁽²⁾		3,506,768			49,278		5.64	%		3,431,304			46,702		5.52	%
Securities – taxable		902,642			6,346		2.82	%		876,092			5,559		2.57	%
Securities – exempt from Federal tax ⁽³⁾		30,259			272		3.61	%		30,480			275		3.66	%
Other investments and interest-bearing deposits
in other financial institutions		647,420			7,186		4.45	%		850,441			9,354		4.46	%
Total interest earning assets ⁽³⁾		5,087,089			63,082		4.97	%		5,188,317			61,890		4.84	%
Cash and due from banks		31,044								31,869
Premises and equipment, net		9,958								10,007
Goodwill and other intangible assets		173,448								173,895
Other assets		156,881								155,808
Total assets	$	5,458,420							$	5,559,896

Liabilities and shareholders’ equity:
Deposits:
Demand, noninterest-bearing	$	1,146,494							$	1,167,330

Demand, interest-bearing		949,867			1,484		0.63	%		944,375			1,438		0.62	%
Savings and money market		1,313,054			8,205		2.51	%		1,323,038			8,073		2.47	%
Time deposits – under $100		11,456			49		1.72	%		11,383			47		1.67	%
Time deposits – $100 and over		231,644			1,995		3.45	%		234,421			2,129		3.68	%
ICS/CDARS – interest-bearing demand, money market
and time deposits		965,492			5,949		2.47	%		1,036,970			6,248		2.44	%
Total interest-bearing deposits		3,471,513			17,682		2.04	%		3,550,187			17,935		2.05	%
Total deposits		4,618,007			17,682		1.54	%		4,717,517			17,935		1.54	%

Short-term borrowings		19			—		0.00	%		18			—		0.00	%
Subordinated debt, net of issuance costs		39,705			538		5.43	%		39,667			537		5.49	%
Total interest-bearing liabilities		3,511,237			18,220		2.08	%		3,589,872			18,472		2.09	%
Total interest-bearing liabilities and demand,
noninterest-bearing / cost of funds		4,657,731			18,220		1.57	%		4,757,202			18,472		1.57	%
Other liabilities		103,673								109,961
Total liabilities		4,761,404								4,867,163
Shareholders’ equity		697,016								692,733
Total liabilities and shareholders’ equity	$	5,458,420							$	5,559,896

Net interest income / margin ⁽³⁾					44,862		3.54	%					43,418		3.39	%
Less tax equivalent adjustment ⁽³⁾					(57	)							(58	)
Net interest income				$	44,805		3.53	%				$	43,360		3.39	%

^{(1)Includes loans held-for-sale. Nonaccrual loans are included in average balances.}
^{(2)Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $253,000 for the second quarter of 2025, compared to $214,000 for the first quarter of 2025. Prepayment fees totaled $473,000 for the second quarter of 2025, compared to $224,000 for the first quarter of 2025.}
^{(3)Reflects the FTE adjustment for Federal tax-exempt income based on a 21% tax rate. This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial
Measures” in this press release.}


	For the Quarter Ended								For the Quarter Ended
	June 30, 2025								June 30, 2024
				Interest			Average					Interest			Average
NET INTEREST INCOME AND NET INTEREST MARGIN	Average			Income/			Yield/		Average			Income/			Yield/
(in $000’s, unaudited)	Balance			Expense			Rate		Balance			Expense			Rate
Assets:
Loans, core bank	$	3,020,534		$	41,738		5.54	%	$	2,830,260		$	38,496		5.47	%
Prepayment fees		—			473		0.06	%		—			54		0.01	%
Bay View Funding factored receivables		67,756			3,347		19.81	%		54,777			2,914		21.40	%
Purchased residential mortgages		420,280			3,548		3.39	%		447,687			3,739		3.36	%
Loan fair value mark / accretion		(1,802	)		172		0.02	%		(2,863	)		267		0.04	%
Loans, gross ⁽¹⁾⁽²⁾		3,506,768			49,278		5.64	%		3,329,861			45,470		5.49	%
Securities – taxable		902,642			6,346		2.82	%		942,532			5,483		2.34	%
Securities – exempt from Federal tax ⁽³⁾		30,259			272		3.61	%		31,803			285		3.60	%
Other investments and interest-bearing deposits
in other financial institutions		647,420			7,186		4.45	%		536,474			7,311		5.48	%
Total interest earning assets ⁽³⁾		5,087,089			63,082		4.97	%		4,840,670			58,549		4.86	%
Cash and due from banks		31,044								33,419
Premises and equipment, net		9,958								10,216
Goodwill and other intangible assets		173,448								175,498
Other assets		156,881								153,368
Total assets	$	5,458,420							$	5,213,171

Liabilities and shareholders’ equity:
Deposits:
Demand, noninterest-bearing	$	1,146,494							$	1,127,145

Demand, interest-bearing		949,867			1,484		0.63	%		932,100			1,719		0.74	%
Savings and money market		1,313,054			8,205		2.51	%		1,104,589			7,867		2.86	%
Time deposits – under $100		11,456			49		1.72	%		10,980			46		1.68	%
Time deposits – $100 and over		231,644			1,995		3.45	%		228,248			2,245		3.96	%
ICS/CDARS – interest-bearing demand, money market
and time deposits		965,492			5,949		2.47	%		991,483			7,207		2.92	%
Total interest-bearing deposits		3,471,513			17,682		2.04	%		3,267,400			19,084		2.35	%
Total deposits		4,618,007			17,682		1.54	%		4,394,545			19,084		1.75	%

Short-term borrowings		19			—		0.00	%		19			—		0.00	%
Subordinated debt, net of issuance costs		39,705			538		5.43	%		39,553			538		5.47	%
Total interest-bearing liabilities		3,511,237			18,220		2.08	%		3,306,972			19,622		2.39	%
Total interest-bearing liabilities and demand,
noninterest-bearing / cost of funds		4,657,731			18,220		1.57	%		4,434,117			19,622		1.78	%
Other liabilities		103,673								103,946
Total liabilities		4,761,404								4,538,063
Shareholders’ equity		697,016								675,108
Total liabilities and shareholders’ equity	$	5,458,420							$	5,213,171

Net interest income / margin ⁽³⁾					44,862		3.54	%					38,927		3.23	%
Less tax equivalent adjustment ⁽³⁾					(57	)							(60	)
Net interest income				$	44,805		3.53	%				$	38,867		3.23	%

^{(1)Includes loans held-for-sale. Nonaccrual loans are included in average balances.}
^{(2)Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $253,000 for the second quarter of 2025, compared to $117,000 for the second quarter of 2024. Prepayment fees totaled $473,000 for the second quarter of 2025, compared to $54,000 for the second quarter of 2024.}
^{(3)Reflects the FTE adjustment for Federal tax-exempt income based on a 21% tax rate. This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial}^{Measures” in this press release.}


	For the Six Months Ended								For the Six Months Ended
	June 30, 2025								June 30, 2024
				Interest			Average					Interest			Average
NET INTEREST INCOME AND NET INTEREST MARGIN	Average			Income/			Yield/		Average			Income/			Yield/
(in $000’s, unaudited)	Balance			Expense			Rate		Balance			Expense			Rate
Assets:
Loans, core bank	$	2,983,011		$	81,496		5.51	%	$	2,812,805		$	76,217		5.45	%
Prepayment fees		—			697		0.05	%		—			78		0.01	%
Bay View Funding factored receivables		64,024			6,289		19.81	%		54,144			5,752		21.36	%
Purchased residential mortgages		424,101			7,145		3.40	%		450,964			7,527		3.36	%
Loan fair value mark / accretion		(1,891	)		353		0.02	%		(2,988	)		496		0.04	%
Loans, gross ⁽¹⁾⁽²⁾		3,469,245			95,980		5.58	%		3,314,925			90,070		5.46	%
Securities – taxable		889,440			11,905		2.70	%		992,508			11,666		2.36	%
Securities – exempt from Federal tax ⁽³⁾		30,369			547		3.63	%		31,871			571		3.60	%
Other investments, interest-bearing deposits in other
financial institutions and Federal funds sold		748,370			16,540		4.46	%		486,283			13,263		5.48	%
Total interest earning assets ⁽³⁾		5,137,424			124,972		4.91	%		4,825,587			115,570		4.82	%
Cash and due from banks		31,454								33,316
Premises and equipment, net		9,982								10,115
Goodwill and other intangible assets		173,671								175,769
Other assets		156,347								151,116
Total assets	$	5,508,878							$	5,195,903

Liabilities and shareholders’ equity:
Deposits:
Demand, noninterest-bearing	$	1,156,854							$	1,152,111

Demand, interest-bearing		947,137			2,922		0.62	%		926,074			3,273		0.71	%
Savings and money market		1,318,018			16,278		2.49	%		1,086,085			14,516		2.69	%
Time deposits – under $100		11,420			96		1.70	%		10,962			88		1.61	%
Time deposits – $100 and over		233,025			4,124		3.57	%		224,730			4,309		3.86	%
ICS/CDARS – interest-bearing demand, money market
and time deposits		1,001,033			12,197		2.46	%		977,385			13,818		2.84	%
Total interest-bearing deposits		3,510,633			35,617		2.05	%		3,225,236			36,004		2.24	%
Total deposits		4,667,487			35,617		1.54	%		4,377,347			36,004		1.65	%

Short-term borrowings		19			—		0.00	%		17			—		0.00	%
Subordinated debt, net of issuance costs		39,686			1,075		5.46	%		39,535			1,076		5.47	%
Total interest-bearing liabilities		3,550,338			36,692		2.08	%		3,264,788			37,080		2.28	%
Total interest-bearing liabilities and demand,
noninterest-bearing / cost of funds		4,707,192			36,692		1.57	%		4,416,899			37,080		1.69	%
Other liabilities		106,800								105,304
Total liabilities		4,813,992								4,522,203
Shareholders’ equity		694,886								673,700
Total liabilities and shareholders’ equity	$	5,508,878							$	5,195,903

Net interest income / margin ⁽³⁾					88,280		3.47	%					78,490		3.27	%
Less tax equivalent adjustment ⁽³⁾					(115	)							(120	)
Net interest income				$	88,165		3.46	%				$	78,370		3.27	%

^{(1)Includes loans held-for-sale. Nonaccrual loans are included in average balances.}
^{(2)Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $467,000 for the first six months of 2025, compared to $277,000}^{for the six months of 2024. Prepayment fees totaled $697,000 for the first six months of 2025, compared to $78,000 for the first six months of 2024.}
^{(3)Reflects the FTE adjustment for Federal tax-exempt income based on a 21% tax rate. This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial}
^{Measures” in this press release.}

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

Management considers net income and earnings per share adjusted to exclude the $9.2 million of charges primarily related to a legal settlement in the second quarter and first six months of 2025 as a useful measurement of the Company’s profitability compared to prior periods.

The following table summarizes components of net income and diluted earnings per share for the periods indicated:


NET INCOME AND	For the Quarter Ended:
DILUTED EARNINGS PER SHARE	June 30,			March 31,		December 31,		September 30,		June 30,
(in $000’s, except per share amounts, unaudited)	2025			2025			2024	2024		2024
Reported net income (GAAP)	$	6,389		$	11,626	$	10,621	$	10,507	$	9,234
Add: pre-tax legal settlement and other charges		9,184			—		—		—		—
Less: related income taxes		(2,618	)		—		—		—		—
Adjusted net income (non-GAAP)	$	12,955		$	11,626	$	10,621	$	10,507	$	9,234

Weighted average shares outstanding – diluted		61,624,600			61,708,361		61,679,735		61,546,157		61,438,088

Reported diluted earnings per share	$	0.10		$	0.19	$	0.17	$	0.17	$	0.15

Adjusted diluted earnings per share	$	0.21		$	0.19	$	0.17	$	0.17	$	0.15


NET INCOME AND	For the Six Months Ended:
DILUTED EARNINGS PER SHARE	June 30,			June 30,
(in $000’s, except per share amounts, unaudited)	2025			2024
Reported net income (GAAP)	$	18,015		$	19,400
Add: pre-tax legal settlement and other charges		9,184			—
Less: related income taxes		(2,618	)		—
Adjusted net income (non-GAAP)	$	24,581		$	19,400

Weighted average shares outstanding – diluted		61,664,942			61,446,484

Reported diluted earnings per share	$	0.29		$	0.32

Adjusted diluted earnings per share	$	0.40		$	0.32

Management considers tangible book value per share as a useful measurement of the Company’s equity. The Company references the return on average tangible common equity and the return on average tangible assets as measurements of profitability.

The following table summarizes components of the tangible book value per share at the dates indicated:


TANGIBLE BOOK VALUE PER SHARE	June 30,			March 31,			December 31,			September 30,			June 30,
(in $000’s, unaudited)	2025			2025			2025			2024			2024
Capital components:
Total equity (GAAP)	$	694,704		$	696,190		$	689,727		$	685,352		$	679,199
Less: preferred stock		—			—			—			—			—
Total common equity		694,704			696,190			689,727			685,352			679,199
Less: goodwill		(167,631	)		(167,631	)		(167,631	)		(167,631	)		(167,631	)
Less: other intangible assets		(5,532	)		(5,986	)		(6,439	)		(6,966	)		(7,521	)
Reported tangible common equity (non-GAAP)		521,541			522,573			515,657			510,755			504,047
Add: pre-tax legal settlement and other charges		9,184			—			—			—			—
Less: related income taxes		(2,618	)		—			—			—			—
Adjusted tangible common equity (non-GAAP)	$	528,107		$	522,573		$	515,657		$	510,755		$	504,047

Common shares outstanding at period-end		61,446,763			61,611,121			61,348,095			61,297,344			61,292,094

Reported tangible book value per share (non-GAAP)	$	8.49		$	8.48		$	8.41		$	8.33		$	8.22

Adjusted tangible book value per share (non-GAAP)	$	8.59		$	8.48		$	8.41		$	8.33		$	8.22

The following tables summarize components of the annualized return on average equity, annualized return on average tangible common equity and the annualized return on average assets for the periods indicated:


RETURN ON AVERAGE TANGIBLE COMMON	For the Quarter Ended:
EQUITY AND AVERAGE ASSETS	June 30,				March 31,				December 31,				September 30,				June 30,
(in $000’s, unaudited)	2025				2025					2024			2024				2024
Reported net income (GAAP)	$	6,389			$	11,626			$	10,621			$	10,507			$	9,234
Add: pre-tax legal settlement and other charges		9,184				—				—				—				—
Less: related income taxes		(2,618	)			—				—				—				—
Adjusted net income (non-GAAP)	$	12,955			$	11,626			$	10,621			$	10,507			$	9,234

Average tangible common equity components:
Average equity (GAAP)	$	697,016			$	692,733			$	686,263			$	680,404			$	675,108
Less: goodwill		(167,631	)			(167,631	)			(167,631	)			(167,631	)			(167,631	)
Less: other intangible assets		(5,817	)			(6,264	)			(6,770	)			(7,322	)			(7,867	)
Total average tangible common equity (non-GAAP)	$	523,568			$	518,838			$	511,862			$	505,451			$	499,610

Annualized return on average equity (GAAP)		3.68		%		6.81		%		6.16		%		6.14		%		5.50		%

Reported annualized return on average
tangible common equity (non-GAAP)		4.89		%		9.09		%		8.25		%		8.27		%		7.43		%

Adjusted annualized return on average
tangible common equity (non-GAAP)		9.92		%		9.09		%		8.25		%		8.27		%		7.43		%

Average assets (GAAP)	$	5,458,420			$	5,559,896			$	5,607,840			$	5,352,067			$	5,213,171

Reported annualized return on average assets (GAAP)		0.47		%		0.85		%		0.75		%		0.78		%		0.71		%

Adjusted annualized return on average assets (non-GAAP)		0.95		%		0.85		%		0.75		%		0.78		%		0.71		%


RETURN ON AVERAGE TANGIBLE COMMON	For the Six Months Ended:
EQUITY AND AVERAGE ASSETS	June 30,				June 30,
(in $000’s, unaudited)	2025				2024
Reported net income (GAAP)	$	18,015			$	19,400
Add: pre-tax legal settlement and other charges		9,184				—
Less: related income taxes		(2,618	)			—
Adjusted net income (non-GAAP)	$	24,581			$	19,400

Average tangible common equity components:
Average equity (GAAP)	$	694,886			$	673,700
Less: goodwill		(167,631	)			(167,631	)
Less: other intangible assets		(6,040	)			(8,138	)
Total average tangible common equity (non-GAAP)	$	521,215			$	497,931

Annualized return on average equity (GAAP)		5.23		%		5.79		%

Reported annualized return on average
tangible common equity (non-GAAP)		6.97		%		7.84		%

Adjusted annualized return on average
tangible common equity (non-GAAP)		9.51		%		7.84		%

Average assets (GAAP)	$	5,508,878			$	5,195,903

Reported annualized return on average assets (GAAP)		0.66		%		0.75		%

Adjusted annualized return on average assets (non-GAAP)		0.90		%		0.75		%

Management reviews yields on certain asset categories and the net interest margin of the Company on an FTE basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. The following tables summarize components of FTE net interest income of the Company for the periods indicated:


	For the Quarter Ended:
NET INTEREST INCOME AND NET INTEREST MARGIN	June 30,			March 31,			December 31,			September 30,			June 30,
(in $000’s, unaudited)	2025			2025			2024			2024			2024
Net interest income before
credit losses on loans (GAAP)	$	44,805		$	43,360		$	43,595		$	39,329		$	38,867
Tax-equivalent adjustment on securities –
exempt from Federal tax		57			58			58			59			60
Net interest income, FTE (non-GAAP)	$	44,862		$	43,418		$	43,653		$	39,388		$	38,927

Average balance of total interest earning assets	$	5,087,089		$	5,188,317		$	5,235,986		$	4,980,082		$	4,840,670

Net interest margin (annualized net interest income divided by the
average balance of total interest earnings assets) (GAAP)		3.53	%		3.39	%		3.31	%		3.14	%		3.23	%

Net interest margin, FTE (annualized net interest income, FTE,
divided by the average balance of total
earnings assets) (non-GAAP)		3.54	%		3.39	%		3.32	%		3.15	%		3.23	%


	For the Six Months Ended:
NET INTEREST INCOME AND NET INTEREST MARGIN	June 30,			June 30,
(in $000’s, unaudited)	2025			2024
Net interest income before
credit losses on loans (GAAP)	$	88,165		$	78,370
Tax-equivalent adjustment on securities – exempt from Federal tax		115			120
Net interest income, FTE (non-GAAP)	$	88,280		$	78,490

Average balance of total interest earning assets	$	5,137,424		$	4,825,587

Net interest margin (annualized net interest income divided by the
average balance of total interest earnings assets) (GAAP)		3.46	%		3.27	%

Net interest margin, FTE (annualized net interest income, FTE, divided by the
average balance of total interest earnings assets) (non-GAAP)		3.47	%		3.27	%

Management views its non-GAAP PPNR as a key metric for assessing the Company’s earnings power. The following table summarizes the components of PPNR for the periods indicated:


	For the Quarter Ended:
PRE-PROVISION NET REVENUE	June 30,			March 31,			December 31,			September 30,			June 30,
(in $000’s, unaudited)	2025			2025			2024			2025			2024
Net interest income before credit losses on loans	$	44,805		$	43,360		$	43,595		$	39,329		$	38,867
Noninterest income		2,977			2,696			2,775			2,826			2,864
Total revenue		47,782			46,056			46,370		$	42,155		$	41,731
Less: Noninterest expense		(38,335	)		(29,456	)		(30,304	)		(27,555	)		(28,188	)
Reported PPNR (non-GAAP)		9,447			16,600			16,066		$	14,600		$	13,543
Add: pre-tax legal settlement and other charges		9,184			—			—			—			—
Adjusted PPNR (non-GAAP)	$	18,631		$	16,600		$	16,066		$	14,600		$	13,543


	For the Six Months Ended:
PRE-PROVISION NET REVENUE	June 30,			June 30,
(in $000’s, unaudited)	2025			2024
Net interest income before credit losses on loans	$	88,165		$	78,370
Noninterest income		5,673			5,501
Total revenue		93,838			83,871
Less: Noninterest expense		(67,791	)		(55,724	)
Reported PPNR (non-GAAP)		26,047			28,147
Add: pre-tax legal settlement and other charges		9,184			—
Adjusted PPNR (non-GAAP)	$	35,231		$	28,147

The efficiency ratio is a non-GAAP financial measure, which is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income), and measures how much it costs to produce one dollar of revenue. The following tables summarize components of noninterest expense and the efficiency ratio of the Company for the periods indicated:


	For the Quarter Ended:
NONINTEREST EXPENSE AND EFFICIENCY RATIO	June 30,				March 31,			December 31,			September 30,			June 30,
(in $000’s, unaudited)	2025				2025			2024			2024			2024
Reported noninterest expense (GAAP)	$	38,335			$	29,456		$	30,304		$	27,555		$	28,188
Less: pre-tax legal settlement and other charges		(9,184	)			—			—			—			—
Adjusted noninterest expense (non-GAAP)	$	29,151			$	29,456		$	30,304		$	27,555		$	28,188

Net interest income before credit losses on loans	$	44,805			$	43,360		$	43,595		$	39,329		$	38,867
Noninterest income		2,977				2,696			2,775			2,826			2,864
Total revenue	$	47,782			$	46,056		$	46,370		$	42,155		$	41,731

Reported efficiency ratio (noninterest expense divided
by total revenue) (non-GAAP)		80.23		%		63.96	%		65.35	%		65.37	%		67.55	%

Adjusted efficiency ratio (adjusted noninterest expense
divided by total revenue) (non-GAAP)		61.01		%		63.96	%		65.35	%		65.37	%		67.55	%


	For the Six Months Ended:
NONINTEREST EXPENSE AND EFFICIENCY RATIO	June 30,				June 30,
(in $000’s, unaudited)	2025				2024
Reported noninterest expense (GAAP)	$	67,791			$	55,724
Less: pre-tax legal settlement and other charges		(9,184	)			—
Adjusted noninterest expense (non-GAAP)	$	58,607			$	55,724

Net interest income before credit losses on loans	$	88,165			$	79,548
Noninterest income		5,673				4,323
Total revenue	$	93,838			$	83,871

Reported efficiency ratio (noninterest expense divided
by total revenue) (non-GAAP)		72.24		%		66.44	%

Adjusted efficiency ratio (adjusted noninterest expense
divided by total revenue) (non-GAAP)		62.46		%		66.44	%

Management considers the tangible common equity ratio as a useful measurement of the Company’s and the Bank’s equity. The following table summarizes components of the tangible common equity to tangible assets ratio of the Company at the dates indicated:


TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS	June 30,				March 31,				December 31,				September 30,				June 30,
(in $000’s, unaudited)	2025				2025				2024				2024				2024
Capital components:
Total equity (GAAP)	$	694,704			$	696,190			$	689,727			$	685,352			$	679,199
Less: preferred stock		—				—				—				—				—
Total common equity		694,704				696,190				689,727				685,352				679,199
Less: goodwill		(167,631	)			(167,631	)			(167,631	)			(167,631	)			(167,631	)
Less: other intangible assets		(5,532	)			(5,986	)			(6,439	)			(6,966	)			(7,521	)
Total tangible common equity (non-GAAP)	$	521,541			$	522,573			$	515,657			$	510,755			$	504,047

Asset components:
Total assets (GAAP)	$	5,467,237			$	5,514,255			$	5,645,006			$	5,551,596			$	5,263,024
Less: goodwill		(167,631	)			(167,631	)			(167,631	)			(167,631	)			(167,631	)
Less: other intangible assets		(5,532	)			(5,986	)			(6,439	)			(6,966	)			(7,521	)
Total tangible assets (non-GAAP)	$	5,294,074			$	5,340,638			$	5,470,936			$	5,376,999			$	5,087,872

Tangible common equity / tangible assets (non-GAAP)		9.85		%		9.78		%		9.43		%		9.50		%		9.91		%

The following table summarizes components of the tangible common equity to tangible assets ratio of the Bank at the dates indicated:


TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS	June 30,				March 31,				December 31,				September 30,				June 30,
(in $000’s, unaudited)	2025				2025				2024				2024				2024
Capital components:
Total equity (GAAP)	$	717,103			$	715,605			$	709,379			$	704,585			$	697,964
Less: preferred stock		—				—				—				—				—
Total common equity		717,103				715,605				709,379				704,585				697,964
Less: goodwill		(167,631	)			(167,631	)			(167,631	)			(167,631	)			(167,631	)
Less: other intangible assets		(5,532	)			(5,986	)			(6,439	)			(6,966	)			(7,521	)
Total tangible common equity (non-GAAP)	$	543,940			$	541,988			$	535,309			$	529,988			$	522,812

Asset components:
Total assets (GAAP)	$	5,464,618			$	5,512,160			$	5,641,646			$	5,548,576			$	5,260,500
Less: goodwill		(167,631	)			(167,631	)			(167,631	)			(167,631	)			(167,631	)
Less: other intangible assets		(5,532	)			(5,986	)			(6,439	)			(6,966	)			(7,521	)
Total tangible assets (non-GAAP)	$	5,291,455			$	5,338,543			$	5,467,576			$	5,373,979			$	5,085,348

Tangible common equity / tangible assets (non-GAAP)		10.28		%		10.15		%		9.79		%		9.86		%		10.28		%

The MIL Network –

July 25, 2025

MIL-OSI: Heritage Commerce Corp and Heritage Bank of Commerce Appoints Seth Fonti as Chief Financial Officer

Source: GlobeNewswire (MIL-OSI)

SAN JOSE, Calif., July 24, 2025 (GLOBE NEWSWIRE) — Heritage Commerce Corp (NASDAQ: HTBK) (the “Company”), parent company of Heritage Bank of Commerce (the “Bank”), today announced the appointment of Seth Fonti as Executive Vice President and Chief Financial Officer of the Company and the Bank, effective July 24, 2025.

Mr. Fonti brings more than two decades of financial and strategic leadership experience across global and domestic banking institutions. Most recently, he served as Managing Director and Head of Strategy, Corporate Development, and Strategic Finance for MUFG Americas Holding Corporation (“MUFG Americas”), the regional arm of one of the world’s top ten global banks. In this role, he developed and led transformative initiatives across strategy, enterprise-wide financial planning, organizational effectiveness, balance sheet optimization, risk management, and capital planning, positioning him well to add immediate value to the Heritage team.

“Seth is a forward-thinking and trusted financial leader with an impressive record of driving growth, increasing efficiency, and leading through complex transformations,” said Clay Jones, President and Chief Executive Officer of Heritage Bank of Commerce. “His depth of experience and integrity-based approach make him an excellent fit for Heritage as we continue our focus on sustainable growth and strong financial performance.”
“I’m thrilled to be joining Heritage Bank of Commerce during such a dynamic time for the organization,” said Mr. Fonti. “I look forward to working with the talented leadership team to build on the bank’s legacy of client-centered service and strong financial stewardship.”

During his tenure at MUFG Americas, Mr. Fonti established proven agility in setting and executing enterprise strategy, driving enhanced financial performance via growth and efficiency initiatives, enhanced core business profitability, and shaping a simplified, technology-oriented operating model, enabling improved client service and execution. He was hand-selected for MUFG Americas’ Global Leaders Forum as a top 0.1% manager and is widely recognized for his collaborative leadership with a focus on building and developing high performing teams and culture. Prior to MUFG Americas, Mr. Fonti was a financial institutions investment banker with Macquarie Capital, Fox-Pitt Kelton, and JP Morgan, advising on significant M&A, capital markets, and strategic transactions. He holds an M.B.A. in Finance from Georgetown University and a B.A. from Rollins College.

Heritage Commerce Corp, a bank holding company established in October 1997, is the parent company of Heritage Bank of Commerce, established in 1994 and headquartered in San Jose, CA with full-service branches in Danville, Fremont, Gilroy, Hollister, Livermore, Los Altos, Los Gatos, Morgan Hill, Oakland, Palo Alto, Pleasanton, Redwood City, San Francisco, San Jose, San Mateo, San Rafael, and Walnut Creek. Heritage Bank of Commerce is an SBA Preferred Lender. Bay View Funding, a subsidiary of Heritage Bank of Commerce, is based in San Jose, CA and provides business-essential working capital factoring financing to various industries throughout the United States. For more information, please visit www.heritagecommercecorp.com.

Member FDIC

For additional information, email:
InvestorRelations@herbank.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c6dd78d1-7632-4aef-b82e-0e2217a1c1da

The MIL Network –

July 25, 2025

MIL-OSI USA: Ricketts Introduces the Streamlining Rural Housing Act

US Senate News:

Source: United States Senator Pete Ricketts (Nebraska)

WASHINGTON, D.C. – Today, U.S. Senator Pete Ricketts (R-NE), along with Senators Jerry Moran (R-KS), Jeanne Shaheen (D-NH), and Ruben Gallego (D-AZ), introduced the Streamlining Rural Housing Act. The bill directs the U.S. Department of Housing & Urban Development (HUD) and the U.S. Department of Agriculture (USDA) to establish a memorandum of understanding to evaluate the feasibility of joint environmental review and inspection processes. By streamlining the review and inspection processes between HUD and USDA, this bill would make rural housing development more efficient for home builders, affordable housing non-profits, and state housing finance agencies.

“Duplicative red tape and burdensome regulations create additional costs and deter much-needed investments in rural affordable housing,” said Ricketts. “The Streamlining Rural Housing Act is the first step to enhance efficiency and eliminate conflicting requirements that delay approvals so that we can build more housing in rural Nebraska. When I was Governor of Nebraska, our state created a rural workforce housing fund to help administer support to communities for rural housing needs, like construction costs, down payment assistance, and technical assistance.”

“Across Kansas, the demand for rural housing has been on the rise, and it’s important that we find innovative solutions to address this issue,” said Moran. “Streamlining rural housing regulations between HUD and USDA will simplify the regulatory process for developers, allowing them to more efficiently address the growing housing needs in Kansas and across the country.”

“To address the shortage of quality, affordable housing in rural areas, federal regulations need to work for communities rather than against them,” said Senator Shaheen. “I’m glad to join my colleagues in introducing bipartisan legislation that would improve and streamline environmental reviews and housing unit inspections so that we can build more homes and lower costs where it’s needed most.”

“Americans are facing an affordable housing crisis. We need to build more housing and build it fast to bring down costs and get more people into homes,” said Gallego. “Government should be part of the solution, but right now it’s part of the problem. By reducing red tape and streamlining redundant processes, this bipartisan bill will accelerate construction, lower costs, and get more desperately needed homes on the market.”

The Streamlining Rural Housing Act would direct the U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) to:

Create a Memorandum of Understanding (MOU) to evaluate categorical exclusion under the environmental review process for housing projects that use combined funding;
Create an MOU to develop a process for designating a lead agency.
- This process will streamline adoption of Environmental Impact Statements and Environment Assessments approved by the other Department to construct housing projects funded by both agencies;
Create an MOU to evaluate the feasibility of a joint inspection process for housing projects that use combined funding;
Establish an advisory working group to consult on the MOUs consisting of:
- Affordable housing non-profits;
- State housing and housing finance agencies;
- Non-profit and for-profit home builders and housing developers;
- Property management companies;
- Owners of multifamily properties;
- Public housing agencies;
- Residents in housing assisted by HUD and USDA;
- Housing contract administrators.

“The Council for Affordable and Rural Housing (CARH) applauds the efforts of Senators Moran, Ricketts, Shaheen, and Gallego in introducing this important legislation which will help streamline program requirements at the Department of Housing and Urban Development (HUD) and the United States Department of Agriculture’s Rural Development (RD) programs,” said Colleen Fisher, Executive Director of the Council for Affordable and Rural Housing (CARH). “Many times when housing developers and owners are operating a property here is a need to have multiple sources of funding so that the property can cash flow and rents are at levels that low-income residents can afford. When this occurs, the agencies require separate if not identical inspections, somewhat negating the purpose of having the multiple layers of funding, thus increasing regulatory costs. By requiring one inspection, operating costs will be reduced or redirected toward services on properties. The approach envisioned in the bill has been supported by several different Administrations, with the goal of reducing regulatory burdens and improving the delivery of affordable housing programs.”

BACKGROUND

Often, when a housing project draws federal funding from Department of Housing and Urban Development (HUD) and the U.S. Department of Agriculture (USDA) Rural Development, one has to follow separate processes for environmental review and housing inspections for both agencies. This can incur more costs, lead to delays in project completion, and present challenges in getting over excessive bureaucratic procedures. This is burdensome especially at a time when housing needs in rural America are growing and existing housing supply is aging. Memoranda of Understanding (MOUs) are an effective way to address duplicative compliance requirements and regulatory misalignment across different federal, state, and local agencies.

Full text of the legislation can be found here.

MIL OSI USA News –

July 25, 2025

MIL-OSI Security: Defense News in Brief: US-Philippine Airmen strengthen ties during Cope Thunder 25-2

Source: United States Airforce

PACAF participated in Cope Thunder 25-2, a unique platform that integrates U.S. and Philippine Air Forces and enhances interoperability through bilateral fighter training, subject matter expert exchanges and key leadership

engagements.CLARK AIR BASE, Philippines (AFNS) —

U.S. Pacific Air Forces and Philippine Air Force members participated in Cope Thunder 25-2, a bilateral training conducted across multiple locations in the Philippines. The exercise aimed to strengthen partnerships and support the Philippine Air Force’s modernization efforts, promoting regional and global stability.

Established in the Philippines in 1976, Cope Thunder provides a unique platform to integrate U.S. and Philippine Air Forces and enhance interoperability through bilateral fighter training, subject matter expert exchanges and key leadership engagements. Cope Thunder 25-2 also marked the first time a U.S. Air Force F-35A Lightning II squadron has deployed to the Philippines.

“It’s obvious that this isn’t a relationship that’s simply on paper,” said Lt. Col. Bryan Mussler, 421st Mission Generation Force Element commander. “We’ve been integrating with them for a long time, and their mentality and approach to operations is very similar to ours.”

Subject matter expert exchanges during the exercise enabled U.S. and Philippine Airmen in similar career fields to share best practices and effective techniques aimed at improving day-to-day operations for both forces. These exchanges included maintenance, firefighting, airfield operations, electromagnetic warfare and basic fighter maneuvers, with U.S. and Philippine pilots flying side by side.

U.S. Air Force maintainers, assigned to the 421st Mission Generation Force Element, depart the flightline after conducting preflight operations on an F-35A Lightning II during Cope Thunder 25-2 at Clark Air Base, Philippines, July 7, 2025. The exercise enhances interoperability between the U.S. Air Force and the Philippine Air Force and supported the Armed Forces of the Philippines’ modernization efforts. (U.S. Air Force photo by Airman 1st Class Aden Brown)

U.S. Air Force Staff Sgt. Arnaldo Puente Mendez, 421st Mission Generation Force Element aerospace ground equipment maintainer, briefs Philippine Air Force airmen on a self-generating nitrogen servicing cart during Cope Thunder 25-2 at Clark Air Base, Philippines, July 9, 2025. During the subject matter expert exchange, U.S. Airmen provided valuable insight into equipment used for aircraft maintenance, supporting Armed Forces of the Philippines’ modernization efforts. (U.S. Air Force photo by Airman 1st Class Aden Brown)

U.S. Air Force Capt. Tyler Rico, second to the left, and Capt. Toney Fisher, right, 421st Mission Generation Force Element F-35A pilots, coordinate flight plans with Philippine Air Force pilots during the Cope Thunder 25-2 exercise at Clark Air Base, Philippines, July 7, 2025. The training conducted between the U.S. and Philippine Air Force strengthens both the ability to respond together for potential future crises, contingencies and natural disasters. (U.S. Air Force photo by Airman 1st Class Aden Brown) (Image blurred for operational security)

“We worked closely with the PAF pilots, and it was clear they are professional and highly capable aviators that employ their weapon systems with skill and precision,” said Capt. Tobey Fisher, 421st Mission Generation Force Element F-35A instructor pilot. “Additionally, this exercise afforded the 421st MGFE the opportunity to operate at a remote airfield with minimal support.”

The F-35A maintenance team supported Cope Thunder 25-2 with a lean, agile team, operating with roughly one-third of the personnel they typically have at their home station.

“It’s really cool to see such a small team come here and execute the mission,” said Maj. Clinton Bialcak, 421st Fighter Generation Squadron commander, referring to executing the F-35 maintenance mission. “I think everyone in the region, in the world and in the Department of Defense sees that we can do it and they can rely on us.”

The U.S. Air Force’s participation reflects ongoing efforts to strengthen coordination with regional allies and partners.

MIL Security OSI –

July 25, 2025

MIL-OSI Security: Defense News in Brief: Air Force stands up A6 for warfighter communications, cyber systems

Source: United States Airforce

The Department of the Air Force has created a new AF/A6 Deputy Chief of Staff office dedicated to warfighter communications and cyber systems.ARLINGTON, Va. (AFNS) —

This structure is designed to address operational communications and cyber needs effectively throughout the force.

The creation of the AF/A6 office separates the responsibilities for communications and cyber systems from the previous A2/6 framework, marking one of the most significant reorganizations of the Air Staff in over 30 years.

According to Air Force leaders, the change is designed to improve readiness, resilience and operational effectiveness by aligning resources and risk management with mission requirements.

“We created the A6 to ensure communications and cyber systems are available, secure and aligned with warfighter priorities,” said Air Force Chief of Staff Gen. David W. Allvin. “This office will help us focus resources and oversight where it matters most — supporting the mission in contested environments.”

Members of the new Deputy of the Chief of Staff Warfighter, Communications and Cyber Systems remove their old patches and replace them with new ones at the Pentagon, Arlington, Virginia, July 23, 2025. The creation of the AF/A6 office separates the responsibilities for communications and cyber systems from the previous A2/6 framework, marking one of the most significant reorganizations of the Air Staff in over 30 years. (U.S. Air Force photo by Staff Sgt. Stuart Bright)

The new Deputy of the Air Force Warfighter, Communications and Cyber Systems patch is displayed at the Pentagon, Arlington, Va., July 23, 2025. The new Air Force A6 logo was designed by Master Sgt. Michael Williams, 85th Engineering Installation Squadron. The creation of the AF/A6 office separates the responsibilities for communications and cyber systems from the previous A2/6 framework, marking one of the most significant reorganizations of the Air Staff in over 30 years. (U.S. Air Force photo by Staff Sgt. Stuart Bright)

Lt. Gen. Leah Lauderback, former Deputy Chief of Staff for Intelligence, Surveillance, Reconnaissance and Cyber Effects Operations, said the A6 will serve as a critical link between operational feedback and strategic planning.

“Standing up the A6 allows us to manage risk, prioritize limited resources and advocate for warfighter needs using data from across the enterprise,” Lauderback said. “It’s a necessary step to treat communications and cyber as the operational enablers they are.”

Maj. Gen. Michelle Edmondson has been appointed to serve as the first standalone Deputy Chief of Staff for AF/A6. Her experience in operations, training and strategic planning is expected to help the office’s focus on delivering integrated, resilient communications capabilities across domains.

“Our mission is to ensure warfighters have the reliable, secure communications they need to succeed in a complex and contested environment,” Edmondson said. “We’re building an enterprise that connects people, systems and decisions at the speed required by today’s operational demands.”

The office will coordinate with various stakeholders, including the department’s chief information officer, the principal cyber advisor, major command A6 offices, acquisition program offices and other operational and functional communities.

Officials emphasized the AF/A6 will be organized around a warfighter-centric model, designed to support current capabilities while informing future investment decisions and force design initiatives.

MIL Security OSI –

July 25, 2025

MIL-OSI Security: Defense News in Brief: Operation Healthy Tennessee: Where readiness meets relief

Source: United States Airforce

EVENSVILLE, Tenn. (AFNS) — More than 200 service members from the U.S. Air Force, Air National Guard, U.S. Army, U.S. Navy, U.S. Army Reserve and U.S. Air Force Reserve participated in Operation Healthy Tennessee, as part of the Department of Defense’s Innovative Readiness Training program, held July 11–21. Over the course of the mission, they provided no-cost medical, dental, optometry and veterinary services to over 2,600 residents across Rhea, Bledsoe and area counties.

The IRT program is a unique U.S. DoD initiative that enhances military readiness through hands-on, real-world training while delivering critical services to communities in need.

“This is a great opportunity to not only get services that the community may not be able to afford but they can see what the military provides”, said Cathy Swafford, Rhea County community lead. “You can tell that [the military members] just really want to serve their community and give back.”

Operation Healthy Tennessee brought together service members across the joint force, fostering an environment to strengthen readiness while offering services such as medical, dental, optometry, nutrition counseling and veterinary care, all provided at no cost by credentialed professionals.

“We are providing a great level of service,” stated Maj. Ralph Garcia, Bledsoe County officer in charge. “It’s a collaborative joint effort to bring resources to underserved communities.”

The mission proved to be a powerful example of the program’s impact, making a strong contribution towards the IRT Program.

U.S. Air Force Senior Airman Shannando Harrison, a dental technician assigned to the 88th dental squadron, Ohio, holds a baby while the baby’s mother receives dental care during Operation Healthy Tennessee, Bledsoe County High School, Pikeville, Tenn., July 18, 2025. Operation Healthy Tennessee provides no-cost medical, dental, vision and veterinary services to the residents of Bledsoe and Rhea County, as well as the surrounding areas while satisfying training requirements for active-duty, reserve and Air National Guard service members and units. (U.S. Air National Guard photo by SSgt. Sarah Stalder Lundgren)

U.S. Army Sgt. Yeneidee Charriez Hernandez, an animal care specialist, assigned to the 7350th Veterinary Detachment, Ala., weighs a cat during veterinary care during Operation Healthy Tennessee, Rhea County Fair Grounds, Rhea County, Tenn., July 21, 2025. Operation Healthy Tennessee provides no-cost medical, dental, vision and veterinary services to the residents of Bledsoe and Rhea County, as well as the surrounding areas while satisfying training requirements for active-duty, reserve and Air National Guard service members and units. (U.S. Air National Guard photo by SSgt. Sarah Stalder Lundgren)

A U.S. Air Force dental technician completes a dental X-ray for a local resident during Operation Healthy Tennessee, Rhea County Middle School, Evensville, Tenn., July 10, 2025. Operation Healthy Tennessee provides no-cost medical, dental, vision and veterinary services to the residents of Bledsoe and Rhea County, as well as the surrounding areas while satisfying training requirements for active-duty, reserve and Air National Guard service members and units.

In just 10 days, two medical clinic locations served 2,000 patients and completed more than 15,000 medical, dental and optometry procedures. The veterinary team treated 677 pets, delivering services valued at $314,465. A specialized optometry team, assigned to the mission as part of a Naval Ophthalmic Readiness Activity, built and distributed more than 770 pairs of glasses for those in need.

The fair market value of all medical and veterinary services provided is totaled at $1.9 million.

“Training is such an important part of an IRT,” said Lt. Danielle Lloyd, Operation Healthy Tennessee officer in charge. “Although we are providing much needed medical care to this community, at the same time, we are training to make sure we are staying mission ready.”

The operation logged more than 25,000 training hours across categories including readiness, certification, clinic skills, ad-hoc tasks and hands-on training.

IRT missions, like Operation Healthy Tennessee, often represent a once-in-a-career opportunity, and participants are encouraged to fully embrace the collaborative environment, network with fellow service members and connect with the public to which we are caring for to maximize the experience.

“Now that we’ve had our last day of clinical care and we’re able to see the final numbers, it’s such a good feeling to see that we’ve helped so many community members,” Lloyd said. “There’s no better feeling than seeing someone who desperately needed care and being able to provide it at no cost.”

MIL Security OSI –

July 25, 2025

MIL-OSI Security: Defense News in Brief: USS Thomas Hudner Returns from Deployment to 4th and 6th Fleet

Source: United States Navy

The Arleigh Burke-class guided-missile destroyer USS Thomas Hudner (DDG 116) returned to Naval Station Mayport July 23, concluding a five-month deployment across multiple geographic theaters, including the U.S. 4th and 6th Fleet areas of operations.

The crew departed Feb. 18, 2025, with their mission focused on strengthening international maritime security and relations with partner nations in the U.S. Southern Command area of responsibility. Shortly after arrival on station, Thomas Hudner welcomed the Honorable Pete Hegseth, Secretary of Defense, who recognized Thomas Hudner’s high-performing Sailors during his tour of Naval Support Activity (NSA) Guantanamo Bay facilities.

Upon departing NSA Guantanamo Bay, Thomas Hudner conducted trilateral operations in the Caribbean Sea with the Ticonderoga-class guided-missile cruiser USS Normandy (CG 60), the United Kingdom Royal Navy River-class offshore patrol vessel HMS Medway (P 223) and the Royal Netherlands Navy Holland-class offshore patrol vessel HNLMS Groningen (P843), enhancing interoperability among Allied naval forces. Thomas Hudner also conducted freedom of navigation operations off the coast of Cuba, reinforcing the U.S. Navy’s commitment to unity, security, and stability in the Caribbean, Central and South American maritime regions.

“The crew of Thomas Hudner has consistently proven their unwavering commitment in safeguarding America’s national security interests and maintaining the U.S. Navy’s maritime dominance worldwide,” said Cmdr. Cameron Ingram, commanding officer of Thomas Hudner. “I could not be more proud of my team!”

Throughout their deployment in the U.S. European Command area of responsibility, Thomas Hudner’s crew trained and engaged in a variety of activities, from maritime security operations to joint exercises with Allied and partner navies in the European theater.

Thomas Hudner participated in several notable exercises, including Formidable Shield 2025, executed alongside 11 NATO Allies in the North and Norwegian Seas and North Atlantic Ocean. During Formidable Shield 2025, Thomas Hudner executed joint, live-fire Integrated Air and Missile Defense (IAMD) training utilizing NATO command and control reporting structures to enhance interoperability among Allied naval forces.

Thomas Hudner also conducted several port visits and collaborative operations with Norway, the United Kingdom, Spain and Greece, reinforcing the U.S. Navy’s commitment to unity, security and stability in the region. During the 81st anniversary of D-Day landings in Normandy, Thomas Hudner also had the honor of representing the U.S. Navy and hosting a reception with Adm. Stuart B. Munsch, commander, U.S. Naval Forces Europe-Africa, and various other distinguished government and military leaders in the European theater.

Following operations in U.S. 6th Fleet’s northern flank, Thomas Hudner was assigned to conduct national tasking in the Eastern Mediterranean supporting Operation Cobalt Shield. Through this mission, Thomas Hudner successfully conducted maritime security operations and promoted regional stability while executing ballistic missile defense operations.

Thomas Hudner served as the flagship for multiple distinguished visitors throughout her deployment, including the Honorable Pete Hegseth, U.S. Defense Secretary; Air Force Gen. Dan Caine, Chairman of the Joint Chiefs of Staff; Adm. Christopher Grady, Vice Chairman of the Joint Chiefs of Staff; Adm. Alvin Holsey, commander, U.S. Southern Command; Adm. Stuart B. Munsch, commander, U.S. Naval Forces Europe-Africa; and members of the German, French and Royal navies.

“Over the course of a five-month deployment, USS Thomas Hudner and her exceptional crew exemplified the strength of American naval power and international cooperation,” said Capt. Aaron Anderson, Commander, Naval Surface Group Southeast. “Their efforts reflect the strength of our commitment to maritime security and cooperation with our Allies.”

Thomas Hudner is a multi-mission air warfare, undersea warfare, naval surface fire support, surface warfare and ballistic missile defense surface combatant capable of supporting carrier battle groups and amphibious forces, operating independently, or operating as the flagship of a surface action group.

U.S. 2nd Fleet, reestablished in 2018 in response to the changing global security environment, develops and employs maritime ready forces to fight across multiple domains in the Atlantic and Arctic in order to ensure access, deter aggression and defend U.S., Allied, and partner interests.

For more U.S. 2nd Fleet news and photos, visit facebook.com/US2ndFleet, https://www.c2f.usff.navy.mil/, X – @US2ndFleet, and https://www.linkedin.com/company/commander-u-s-2nd-fleet.

MIL Security OSI –

July 25, 2025

MIL-OSI USA: Cline Introduces Bipartisan Fiscal Contingency Preparedness Act

Source: United States House of Representatives – Congressman Ben Cline (VA-06)

Washington, D.C. – With the national debt topping $36 trillion and interest payments now exceeding spending on Medicare and national defense, Congressman Ben Cline (VA-06) has introduced the Fiscal Contingency Preparedness Act with Reps. Jared Golden (ME-02), Jack Bergman (MI-01) and Marie Gluesenkamp Perez (WA-03). This bipartisan bill would require the federal government to assess and report its ability to respond to major national emergencies like economic downturns, energy crises, and national security threats.

The legislation directs the Secretary of the Treasury and the Director of the Office of Management and Budget (OMB) to produce an annual report measuring the government’s fiscal strength and readiness. After this report is released, the Government Accountability Office (GAO) would conduct its own independent review and publish its findings to ensure accuracy and transparency.

“With our debt piling up and interest payments skyrocketing, we cannot afford to be caught flat-footed when the next emergency hits,” said Rep Ben Cline. Just like households plan ahead for tough times, the federal government must do the same. Americans deserve a clear picture of how much room we actually have to respond to future crises. Congress must face the facts and make responsible decisions now, before an emergency strikes.”

“One of the many lessons the Marine Corps taught me was to have a plan for the worst-case scenario,” Congressman Jared Golden (ME-02) said. “This bipartisan bill would force Washington to be clear-eyed about our fiscal outlook in potential national emergencies, which is the necessary first step for responsible planning to keep America stable and secure.”

“We know that when a crisis hits, preparation makes all the difference. The Fiscal Contingency Preparedness Act is a commonsense step to ensure we’re ready to respond to whatever comes our way – whether it’s an economic downturn, a natural disaster, or a national security threat. If we’re serious about keeping our Nation strong and secure, we need to start planning ahead and making our decisions based on reality – not scrambling to prepare after the fact.” Rep. Jack Bergman added.

“As a small business owner, I know how important it is to plan for a rainy day – and hardworking families in Southwest Washington know it too,” said Rep. Gluesenkamp Perez. “Our federal government should hold itself to the same standard and be ready to weather any crisis that comes its way. Our bipartisan legislation would require annual assessments of our national fiscal strength when faced with different crises – so we can better prepare our economy to work for the American people under any circumstances.”

According to the Congressional Budget Office, interest payments on the national debt will permanently exceed defense spending. By 2050, interest costs are expected to double the size of the defense budget. Gross federal debt is projected to hit 123% of GDP by September 2025, surpassing the previous World War II-era high of 119%.

“Our national debt is not just a number. It is a real and rising threat to our way of life. It impacts our economy, our national security, and our ability to respond in times of crisis. I am proud to see Representatives Cline and Golden take up the Fiscal Contingency Preparedness Act. This is a commonsense measure. Just like American families must prepare for emergencies, so should our government.” said Former Senator Joe Manchin.

“Policymakers and the public need access to the best available analysis on how a severe economic shock may impact the federal government’s finances. While our nation’s largest banks are required to undergo regular stress tests to prepare for an unexpected shock, the federal government lacks an equivalent playbook. It is essential that the federal government be prepared for a possible fiscal emergency, and we commend Representatives Cline and Golden for introducing this bipartisan, commonsense proposal to strengthen our fiscal resilience.” said President of the Committee for a Responsible Federal Budget Maya MacGuineas.

Rep Ben Cline concluded “The best way to protect the American people is to be prepared. This legislation gives Congress the tools it needs to manage taxpayer dollars responsibly, respond to national emergencies, and chart a stable financial future for generations to come.”

Congressman Ben Cline represents the Sixth Congressional District of Virginia. He previously was an attorney in private practice and served both as an assistant prosecutor and a Member of the Virginia House of Delegates. Cline and his wife, Elizabeth, live in Botetourt County with their two children.

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MIL OSI USA News –

July 25, 2025

MIL-OSI New Zealand: Alchemy Bathroom Renovations Auckland Expands Services Across South and East Auckland

Source: Press Release Service

Headline: Alchemy Bathroom Renovations Auckland Expands Services Across South and East Auckland

Alchemy Bathroom Renovations Auckland, a long-established specialist in bathroom upgrades, has announced it is now extending its services into South and East Auckland. The expansion comes as the company responds to steady enquiry growth from homeowners in suburbs such as Papakura, Takanini, Pakuranga, Howick, Botany, and Beachlands.

The post Alchemy Bathroom Renovations Auckland Expands Services Across South and East Auckland first appeared on PR.co.nz.

MIL OSI New Zealand News –

July 25, 2025

MIL-OSI USA: Former Kokomo Police Department Officer Charged with Sexually Assaulting 14-Year-old Girl

Source: US State of California

A federal grand jury in Indianapolis, Indiana, returned a two-count indictment, unsealed today, charging former Kokomo Police Department officer Sinmi Asomuyide with sexually assaulting a 14-year-old girl and with lying to state investigators to try to cover up the assault.

The first count of the indictment charges Asomuyide, who was 31 years old, with willfully depriving Minor #1, who was 14 years old, of her constitutional rights by sexually assaulting her. The first count also charges that the defendant’s conduct included kidnapping.

The second count of the indictment charges Asomuyide with lying to the Indiana State Police to try to cover up the assault by, among other things, denying having sexual contact with Minor #1 and denying that there would be any reason for the presence of his semen in his squad car when, in fact, he ejaculated inside his squad car after causing Minor #1’s hand to touch his exposed penis.

If convicted, Asomuyide faces a maximum sentence of life in prison.

Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division, Interim U.S. Attorney Thomas E. Wheeler for the Southern District of Indiana, and Special Agent in Charge Timothy O’Malley of the FBI Indianapolis Field Office made the announcement.

The FBI Indianapolis Field Office is investigating the case, with the cooperation of the Kokomo Police Department; Bloomington Police Department; and Indiana State Police.

Assistant U.S. Attorney Peter Blackett for the Southern District of Indiana and Senior Sex Crimes Counsel Tara Allison of the Justice Department’s Civil Rights Division are prosecuting the case.

This investigation is ongoing. Anyone with additional information is encouraged to call the FBI at 1-800-CALL-FBI.

An indictment is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: Governor Josh Stein Announces 2025 North Carolina Awards to be Held in Western North Carolina

Source: US State of North Carolina

Headline: Governor Josh Stein Announces 2025 North Carolina Awards to be Held in Western North Carolina

Governor Josh Stein Announces 2025 North Carolina Awards to be Held in Western North Carolina
lsaito
Thu, 07/24/2025 – 16:24

Raleigh, NC

Governor Josh Stein today announced that the North Carolina Awards, the state’s highest civilian honor, will be presented on November 13 at a ceremony in Asheville. All net proceeds will go to a fund to help communities recovering from Hurricane Helene.

“I am proud that this year’s North Carolina Awards will be held in western North Carolina to help shine a light on the fact that the area is open for folks to enjoy,” said Governor Josh Stein. “This year, we will honor the very best of North Carolina while encouraging tourism and helping support the ongoing recovery out west.”

“For more than 60 years, the North Carolina Awards have celebrated the outstanding people who make North Carolina a great place to live, learn, and work,” said NC Department of Natural and Cultural Resources Secretary Pamela B. Cashwell. “We are excited to host one of our state’s most prestigious events in Asheville this year and to dedicate proceeds from the event to western North Carolina recovery efforts.”

Governor Stein and Visit NC recently teamed up to encourage people to “Rediscover the Unforgettable” in western North Carolina as the region reopens to visitors after Hurricane Helene. Governor Stein announced the initiative in June at the reopening of Chimney Rock State Park. The initiative seeks to bring people from all over to western North Carolina to boost tourism, support local businesses, and highlight outdoor recreation opportunities.

The North Carolina Awards event will be held at the historic Grove Park Inn. Tickets will go on sale soon.

Created by the General Assembly in 1961 and administered by the North Carolina Department of Natural and Cultural Resources, the award recognizes “notable accomplishments by North Carolina citizens” in the fields of literature, science, fine arts, and public service.

Past award recipients include some of the country’s most distinguished artists, poets, writers, performers, journalists, scientists, and public servants. Since the awards’ inception, more than 300 notable men and women have been honored by the state of North Carolina, including William Friday, James Taylor, Etta Baker, Maya Angelou, Lee Smith, Eric Church, Selma Burke, and Branford Marsalis.

Jul 24, 2025

MIL OSI USA News –

July 25, 2025

MIL-Evening Report: Ultrafast fashion brand Princess Polly has been certified as ‘sustainable’. Is that an oxymoron?

Source: The Conversation (Au and NZ) – By Harriette Richards, Senior Lecturer, School of Fashion and Textiles, RMIT University

Carol Yepes/Getty Images

Last week, the ultrafast fashion brand Princess Polly received B Corp certification. This certification is designed to accredit for-profit businesses that provide social impact and environmental benefit.

Established on the Gold Coast in 2010, a 50% stake in Princess Polly was acquired by United States-based A.K.A. Brands in 2018.

Since then, it has grown its global reach as a low-cost, high-turnover online retailer.

So can ultrafast fashion ever be sustainable?

Who is Princess Polly?

Princess Polly distinguishes itself from other fast fashion retailers through a mission to “make on-trend, sustainable fashion accessible to everyone”.

As part of this mission, Princess Polly is a participant of the United Nations Global Compact, which commits them to sustainable procurement. The 2024 Baptist World Aid Ethical Fashion Report placed them in the top 20% of 460 global brands assessed.

Yet, on the sustainability rating website Good On You, Princess Polly receives a “Not Good Enough” grade, due to their lack of action on reducing plastic and textile waste or protecting biodiversity in their supply chains, and the absence of evidence that they pay their workers a living wage.

Regardless of how they make their clothes, Princess Polly produces a lot. At the time of writing, the brand has 3,920 different styles available on their website (excluding shoes and accessories).

Of those, 34% (1,355 styles) are listed as “lower impact,” which means items are made using materials such as organic cotton and linen, recycled polyester and cellulose fabrics. There are also 720 items on the website currently listed as “new”: their daily new arrivals means they are constantly adding fresh items for sale.

Overproduction, no matter what the garments are made from, is inherently wasteful. Even when clothes are purchased (and 10–40% of the clothing produced each year is not sold), the poor quality of fast fashion items means that they end up in landfill faster and stay there for longer, contributing to the ongoing environmental disaster.

Sustainability communication

In Australia, 1,096 companies are accredited with B Corp status, including 152 fashion businesses.

B Corp assesses the practices of a company as a whole, rather than focusing on one single social or environmental issue. Businesses must score at least 80 out of a possible 250+ points in the B Impact Assessment to achieve accreditation.

Organisations are assessed in five key areas – community, customers, environment, governance and workers – and must meet high standards of social and environmental performance, transparency and accountability.

Third-party accreditations such as B Corp, Fairtrade and Global Organic Textile Standard are often used by brands as a marketing tool.

These certifications can enhance consumer trust without the need for detailed explanations. For fashion brands, accreditation can help them stand out in a crowded market. They can provide legitimacy, attract ethical fashion consumers and reduce consumer scepticism.

While B Corp aims to provide assurance to consumers, activists have accused it of greenwashing. In 2022, the organisation came under fire for accrediting Nespresso, a brand owned by Nestlé, which has a reputation for poor worker rights and sourcing policies.

B Corp is now facing renewed condemnation for issuing certification to Princess Polly.

Who needs certification?

Other B Corp certified Australian fashion brands such as Clothing the Gaps and Outland Denim have built their reputations on their ethical credentials. For values-driven fashion-based social enterprises such as these, accreditations can provide valuable guarantees regarding ethical processes.

According to our research, however, there are several barriers fashion-based social enterprises face when pursuing ethical accreditation.

The cost of accreditation, both financial and in terms of time, skills and resourcing, is a significant challenge. And there is no certification that covers all aspects of environmental sustainability and ethical production. As a result, fashion-based social enterprises often require multiple accreditations to fully communicate the breadth of their ethical commitments.

Despite the costs involved, if fashion-based social enterprises don’t acquire certain certifications they risk being ineligible for government grants and tenders, such as social procurement contracts.

Differences between fashion-based social enterprises and fast fashion brands are stark. While Clothing the Gaps, Outland Denim and Princess Polly now all hold B Corp certification, the former score much more highly on the B Impact Assessment.
The value and credibility of the certification is diminished when it extends to unsustainable ultrafast fashion.

Is it possible for fast fashion to ever be sustainable?

The question of whether fast fashion can ever be sustainable has become increasingly heated since the advent of ultrafast fashion, where brands produce on demand and sell directly online.

Fast fashion took seasonal trends from high fashion runways and made them available to consumers at low costs within weeks. Ultrafast fashion takes trends from social media and reproduces them extremely cheaply for mass consumption within days.

Both fast and ultrafast fashion’s low-cost, high-volume models encourage consumers to value quantity over quality. Using permanent sales and discounts, these brands incentivise multiple purchases of items that may never actually be worn. Online “micro trends” and “haul” videos further spur this overconsumption.

The overconsumption of fast fashion means lots of it ends up in landfill.
Dipanjan Pal/Unsplash

Princess Polly may be using more sustainable textiles and engaging in more ethical forms of production than some of its ultrafast fashion counterparts. But this is not enough when the business model itself is unsustainable. Accreditations such as B Corp are unable to account for this nuance.

Princess Polly claims to make sustainable fashion, yet it is also proudly trend driven. As an ultrafast fashion brand, it relies on overproduction and overconsumption. The idea that this can ever be “sustainable” is simply an oxymoron.

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

– ref. Ultrafast fashion brand Princess Polly has been certified as ‘sustainable’. Is that an oxymoron? – https://theconversation.com/ultrafast-fashion-brand-princess-polly-has-been-certified-as-sustainable-is-that-an-oxymoron-261561

MIL OSI Analysis – EveningReport.nz –

July 25, 2025

MIL-Evening Report: Butter wars: ‘nothing cures high prices like high prices’ – but will market forces be enough?

Source: The Conversation (Au and NZ) – By Alan Renwick, Professor of Agricultural Economics, Lincoln University, New Zealand

RobynRoper/Getty Images

The alarming rise of butter prices has become a real source of frustration for New Zealand consumers, as well as a topic of political recrimination. The issue has become so serious that Miles Hurrell, chief executive of dairy co-operative Fonterra, was summoned to meetings with the government and opposition parties this week.

After meeting Hurrell, Finance Minister Nicola Willis appeared to place some of the blame for the high price of butter on supermarkets rather than on the dairy giant.

According to Stats NZ, butter prices rose by 46.5% in the year to June and are now 120% higher than a decade ago. The average price for a 500g block is NZ$8.60, with some local brands costing over $10.

But solving the problem is not a matter of waving a magic economic wand. Several factors influence butter prices, few of which can be altered directly by government policy.

And the question remains – would we want to? Proposals such as reducing exports to boost domestic supply, or cutting goods and services tax (GST) on dairy products, all carry consequences.

A key factor driving butter prices in New Zealand is that 95% of the country’s dairy production is exported.

Limited domestic supply and strong global demand have pushed up prices for a range of commodities – not just milk, but beef as well. These increases are reflected in local retail prices.

Another contributing factor is rising costs along the supply chain. At the farm level, producers are receiving record prices for dairy. But this comes at a time when input costs have also increased significantly. It is not all profit.

Weighing the options

Before changing rules around dairy exports, the government must weigh the broader consequences.

On the one hand, high milk prices benefit “NZ Inc”. The dairy sector accounts for 25% of exports and employs 55,000 New Zealanders. When farmers do well, the wider rural economy benefits – with flow-on effects for the country as a whole.

On the other hand, there is the ongoing challenge of domestic food security. Many people cannot afford basic groceries and foodbank use is rising.

So how can New Zealand maintain a food system that benefits from exports while also supporting struggling domestic consumers?

One option is to remove GST from food. Other countries exempt dairy products from such taxes in an effort to make staples more affordable.

This idea has been repeatedly reviewed and rejected – including by the 2018 Tax Working Group. In 2024, it was estimated that removing GST could cost the government between $3.3bn and $3.9bn, with only modest benefits for the average household.

Fonterra or supermarkets?

Another route would be to examine Fonterra’s dominance in the supply chain. There are advantages to having a strong global player. And it is not in the national interest for the company to incur losses on domestic sales.

Still, the structure of the market may warrant scrutiny. For a long time there were just two main suppliers of processed dairy products – Fonterra and Goodman Fielder – and two main retailers – Foodstuffs and Woolworths. This set up reduced the need to compete on prices.

While there is arguably more competition in manufacturing sector now, supermarkets are still under scrutiny and have long faced criticism for a lack of competition.

The opaque nature of the profit margins across the supply chain also fuels suspicion. Consumers know what they pay at the checkout and what farmers receive. But the rest is less clear. This lack of transparency invites speculation about who benefits from soaring prices.

In the end, though, the government may not need to act at all.

As economists like to say: “Nothing cures high prices like high prices.” While demand for butter is relatively inelastic, there comes a point at which consumers reduce their purchases or seek alternatives. International buyers will also push back – and falling global demand may redirect more supply to domestic markets.

High prices also act as a signal to producers across the globe to increase production, which could happen relatively quickly if there are favourable climatic and other conditions.

We only need to look back to 2014, when the price of dairy dropped by 48% over the course of 12 months due to reduced demand and increased supply, to see how quickly the situation can change.

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

– ref. Butter wars: ‘nothing cures high prices like high prices’ – but will market forces be enough? – https://theconversation.com/butter-wars-nothing-cures-high-prices-like-high-prices-but-will-market-forces-be-enough-261750

MIL OSI Analysis – EveningReport.nz –

July 25, 2025

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‘Instrumentalization of religion’

Who is Princess Polly?

Sustainability communication

Who needs certification?

Is it possible for fast fashion to ever be sustainable?

Weighing the options

Fonterra or supermarkets?