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Category: Agriculture

  • MIL-OSI USA: HHS, FDA and USDA Address the Health Risks of Ultra-Processed Foods

    Source: US Department of Health and Human Services – 3

    For Immediate Release:
    July 23, 2025

    Under the leadership of the U.S. Department of Health and Human Services Secretary Robert F. Kennedy, Jr. and the U.S. Department of Agriculture Secretary Brooke L. Rollins, the U.S. Food and Drug Administration and U.S. Department of Agriculture are accelerating federal efforts to address the growing concerns around ultra-processed foods and the current epidemic of diet-related chronic disease that is plaguing America. The agencies are announcing a joint Request for Information (RFI) to gather information and data to help establish a federally recognized uniform definition for ultra-processed foods—a critical step in providing increased transparency to consumers about the foods they eat.
    “Ultra-processed foods are driving our chronic disease epidemic,” said HHS Secretary Robert F. Kennedy, Jr. “We must act boldly to eliminate the root causes of chronic illness and improve the health of our food supply. Defining ultra-processed foods with a clear, uniform standard will empower us even more to Make America Healthy Again.”
    Currently, there is no single authoritative definition for ultra-processed foods for the U.S. food supply. Creating a uniform federal definition will serve as a key deliverable on the heels of the recently published Make Our Children Healthy Again Assessment, which recognizes that the overconsumption of ultra-processed foods is one of the driving factors of the childhood chronic disease crisis.
    “President Trump has made it a priority to improve health outcomes for American families and communities. And this Request for Information is yet another step in seeking commonsense ways to foster improved and more informed consumer choice. A unified, widely understood definition for ultra processed foods is long overdue and I look forward to continued partnership with Secretary Kennedy to Make America Healthy Again. As this process unfolds, I will make certain the great men and women of the agriculture value chain are part of the conversation,” said U.S. Secretary of Agriculture Brooke L. Rollins.
    “I am delighted to lead this critical effort at the FDA,” said FDA Commissioner Marty Makary, M.D., M.P.H. “The threats posed to our health by foods often considered ultra-processed are clear and convincing, making it imperative that we work in lockstep with our federal partners to advance, for the first time ever, a uniform definition of ultra-processed foods.”
    It is estimated that approximately 70% of packaged products in the U.S. food supply are foods often considered ultra-processed, and that children get over 60% of their calories from such foods. Dozens of scientific studies have found links between the consumption of foods often considered ultra-processed with numerous adverse health outcomes, including cardiovascular disease, Type 2 diabetes, cancer, obesity and neurological disorders. Helping to address overconsumption of ultra-processed foods is a key element to Make America Healthy Again.
    A uniform definition of ultra-processed foods will allow for consistency in research and policy to pave the way for addressing health concerns associated with the consumption of ultra-processed foods. The RFI will be publicly available in the federal register on July 24 and seeks information on what factors and criteria should be included in a definition of ultra-processed foods.
    Alongside developing a uniform definition, the FDA and National Institutes of Health are investing in high-quality research to help answer remaining questions about the health impacts of ultra-processed foods through its recently announced Nutrition Regulatory Science Program. The Department will also continue to pursue developing and implementing other key policies and programs that seek to, collectively, dramatically reduce chronic disease and help ensure a healthy future for our nation.

    Consumer:888-INFO-FDA

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    The FDA, an agency within the U.S. Department of Health and Human Services, protects the public health by assuring the safety, effectiveness, and security of human and veterinary drugs, vaccines and other biological products for human use, and medical devices. The agency also is responsible for the safety and security of our nation’s food supply, cosmetics, dietary supplements, radiation-emitting electronic products, and for regulating tobacco products.

    Content current as of:
    07/23/2025

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    MIL OSI USA News –

  • MIL-OSI USA: Miller-Meeks Introduces Bill to Rename Fort Madison Post Office in Honor of Martin L. Graber

    Source: United States House of Representatives – Representative Mariannette Miller-Meeks’ (IA-02)

    Washington, D.C. – Today, Congresswoman Mariannette Miller-Meeks (IA-01) introduced legislation to rename the U.S. Post Office located at 1019 Avenue H in Fort Madison, Iowa, as the “Martin L. Graber Post Office.” The bill honors the life and legacy of the late Iowa State Representative Martin Graber, a dedicated public servant, 32-year Iowa Army National Guard veteran, and beloved leader in southeast Iowa.

    Joining Miller-Meeks in leading this bill are Iowa Representatives Ashley Hinson (IA-02) and Randy Feenstra (IA-04).

    “Martin Graber embodied the very best of Iowa: faith, family, and service. He was a patriot, a leader, and a constant source of strength for Fort Madison and all of southeast Iowa,” said Rep. Miller-Meeks. “Naming this post office in his honor ensures his legacy of service and sacrifice lives on. I’m deeply proud to lead this effort to recognize a man who gave so much to his community and his country.”

    “I am so proud to support legislation renaming the Fort Madison Post Office after the late Iowa State Representative Martin Graber,” said Rep. Ashley Hinson. “His life epitomized patriotism, courage, and self-sacrifice, and I am grateful for his dedicated service to Iowans for so many years. This landmark will forever be remembered in his name and is a testament to his legacy.”

    “I’m proud to join my colleagues in the Iowa delegation to rename the Fort Madison Post Office in memory of Martin Graber. As a member of the Iowa legislature, he served the families, farmers, and entrepreneurs of Lee County with class and integrity, and as a Brigadier General in the Iowa National Guard, he sacrificed for our state and country,” said Rep. Feenstra. “Renaming the Fort Madison Post Office is a small gesture that honors his life of service and commemorates his commitment to Southeast Iowa.”

    Read the bill text HERE.

    MIL OSI USA News –

  • MIL-OSI USA: Chairman Smith Op-Ed: The One Big Beautiful Bill Act and Trump’s Trade Policy Will Do What ‘Bidenomics’ Never Could

    Source: United States House of Representatives – Representative Mike Johnson (LA-04)

    WASHINGTON — Today, Ways and Means Chairman Jason Smith published an op-ed in the Washington Examiner highlighting how the One Big Beautiful Bill and President Trump’s trade policy will do what ‘Bidenomics’ NEVER could.

    “Democrats in Washington like to push a narrative that you cannot cut taxes and decrease the deficit. But economic growth fueled by The One Big Beautiful Bill Act, combined with common-sense government spending cuts and President Donald Trump’s successful America First trade policy, will prove them wrong once again,” Chairman Smith wrote.

    Read Chairman Smith’s full op-ed in Washington Examiner here or below:

    For four years, Democrats in Washington pushed a reckless tax-and-spend agenda known as “Bidenomics” that blew a hole in the U.S.’s national debt. More than $10 trillion later, and along with 20% inflation that federal spending created, our nation is at a fiscal crossroads. The status quo is not acceptable or sustainable.

    Democrats in Washington like to push a narrative that you cannot cut taxes and decrease the deficit. But economic growth fueled by The One Big Beautiful Bill Act, combined with common-sense government spending cuts and President Donald Trump’s successful America First trade policy, will prove them wrong once again.

    In fact, it is already happening. June saw the first federal budget surplus in more than nine years, with revenues exceeding spending by $26 billion, thanks to a windfall of $18 billion in new tariff revenue. While deficits are likely to continue in the near term, this is a start in the right direction.

    The myth that you cannot cut taxes and restore fiscal sanity depends on dismissing the tax incentives in the One Big Beautiful Bill Act that will drive investment, create jobs, and grow our economy. The simple truth: They will, and they have before.

    Even though the 50-year historic average GDP growth is over 2.7%, the “nonpartisan” Congressional Budget Office forecasts economic growth will be just 1.8% in the coming years, and the projected deficit impact of the “big, beautiful bill” based on that growth would be $3.3 trillion over ten years. However, if our nation’s economic growth rises just 0.1% above the historic average and clocks in at 2.8%, federal deficits will actually be reduced by over half a trillion dollars.

    Is this possible? We know it is because in the years following the passage of Trump’s 2017 tax cuts, the United States’s economy grew by 2.8%. It can and will happen again.

    Increased federal revenues driven by economic growth are just one piece of the equation. Trump’s successful America First trade policy is not only forcing our trading partners to the table to deliver better deals for American manufacturers and farmers, but it is also providing tens of billions of dollars for deficit reduction each month.

    Even the CBO predicts that the new tariff policies will generate $2.5 trillion in new revenue for the federal government over the next 10 years. That is no small sum.

    Putting direct tariff revenue aside, as countries come to the table and more markets open for American producers, our economic growth will accelerate further. The One Big Beautiful Bill Act and America First trade policies will turbocharge our entrepreneurs to produce more, hire more, and invest more here at home. This will only boost revenues flowing into the federal government further.

    While economic growth and tariffs are part of the solution, Congress must be forced to address the elephant in the room: federal spending. The One Big Beautiful Bill Act took a massive turn down the correct path by cutting over $1.5 trillion in mandatory spending — the most in American history.

    Complacency and lax oversight for years have allowed spending to explode, mostly in our nation’s social safety net programs. Fraud and abuse were allowed to run rampant, putting these programs at risk for the people who truly rely on them.

    Through common-sense reforms such as work requirements, which more than 80% of the public supports, the One Big Beautiful Bill Act has eliminated wasteful spending and protected these programs for future generations. But more must be done.

    Economic growth and tariff revenue alone will not save us, but they are certainly a start. Congress must make responsible decisions in the years to come to prevent saddling the next generation with even more crippling debt and economic decline.

    Addressing our nation’s debt crisis will require a multifaceted, holistic approach, but Republicans are already taking America down the right track.

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    MIL OSI USA News –

  • MIL-OSI USA: During House Agriculture Committee Hearing, Feenstra Speaks Out Against California’s Proposition 12 Mandates on Iowa Hog Farmers

    Source: United States House of Representatives – Representative Randy Feenstra (IA-04)

    WASHINGTON, D.C. – Today, during a U.S. House Agriculture Committee hearing on California’s Proposition 12, U.S. Rep. Randy Feenstra (R-Hull) discussed the negative economic impacts of this egregious mandate on Iowa hog farmers and submitted for the congressional record letters penned by Iowa hog farmers about the adverse effects of Proposition 12 on their farms and operations.

    Matt Schuiteman, a hog farmer from Sioux County, Iowa, also testified before the U.S. House Agriculture Committee about the negative ramifications of Proposition 12.

    “California’s Prop 12 mandates threaten the safety and health of hogs, increase operating costs for Iowa hog farmers, raise pork prices for families, and jeopardize our food and farm security. It’s why I helped lead legislation and voted for a Farm Bill that overturns Prop 12, restores consumer choice, and supports Iowa farmers and our rural communities,” said Rep. Feenstra. “During today’s hearing, I submitted for the congressional record personal letters from Iowa hog farmers who have faced decreased herd health, substantial financial expense, and market losses because of Prop 12. Allowing a state that represents less than 1/10 of 1% of hog production to mandate activist-driven practices for farmers across the country is blatantly wrong. Representing the largest pork-producing congressional district in the country, I will continue to work to repeal Prop 12 and stand up for our hog farmers.”

    In response to Feenstra’s question about the implications of Proposition 12 on the health of hogs,Schuiteman responded, “Part of the root of the problem is just simply the fact that you have an initiative that was crafted by people who have not lived the industry and have not been around the animals. Prop 12 takes away our ability to act on what we know for the best interest of the animal. And we would prefer to have the freedom to manage our animals the best way we can see fit for the best possible outcome.” 

    Schuiteman further noted that “We [hog farmers] have talked about the $3,500 – $4,500 range per sow or more,” to convert operations to comply with Proposition 12.

    Today, Feenstra helped introduce the Save Our Bacon Act, which would ensure that states, like California and Massachusetts, cannot set arbitrary mandates on production practices for farmers across the country. 

    Last year, Feenstra also voted to pass a Farm Bill out of the U.S. House Agriculture Committee that would have repealed Proposition 12.

    You can watch Feenstra’s full remarks HERE.

    MIL OSI USA News –

  • MIL-OSI USA: During House Agriculture Committee Hearing, Feenstra Speaks Out Against California’s Proposition 12 Mandates on Iowa Hog Farmers

    Source: United States House of Representatives – Representative Randy Feenstra (IA-04)

    WASHINGTON, D.C. – Today, during a U.S. House Agriculture Committee hearing on California’s Proposition 12, U.S. Rep. Randy Feenstra (R-Hull) discussed the negative economic impacts of this egregious mandate on Iowa hog farmers and submitted for the congressional record letters penned by Iowa hog farmers about the adverse effects of Proposition 12 on their farms and operations.

    Matt Schuiteman, a hog farmer from Sioux County, Iowa, also testified before the U.S. House Agriculture Committee about the negative ramifications of Proposition 12.

    “California’s Prop 12 mandates threaten the safety and health of hogs, increase operating costs for Iowa hog farmers, raise pork prices for families, and jeopardize our food and farm security. It’s why I helped lead legislation and voted for a Farm Bill that overturns Prop 12, restores consumer choice, and supports Iowa farmers and our rural communities,” said Rep. Feenstra. “During today’s hearing, I submitted for the congressional record personal letters from Iowa hog farmers who have faced decreased herd health, substantial financial expense, and market losses because of Prop 12. Allowing a state that represents less than 1/10 of 1% of hog production to mandate activist-driven practices for farmers across the country is blatantly wrong. Representing the largest pork-producing congressional district in the country, I will continue to work to repeal Prop 12 and stand up for our hog farmers.”

    In response to Feenstra’s question about the implications of Proposition 12 on the health of hogs,Schuiteman responded, “Part of the root of the problem is just simply the fact that you have an initiative that was crafted by people who have not lived the industry and have not been around the animals. Prop 12 takes away our ability to act on what we know for the best interest of the animal. And we would prefer to have the freedom to manage our animals the best way we can see fit for the best possible outcome.” 

    Schuiteman further noted that “We [hog farmers] have talked about the $3,500 – $4,500 range per sow or more,” to convert operations to comply with Proposition 12.

    Today, Feenstra helped introduce the Save Our Bacon Act, which would ensure that states, like California and Massachusetts, cannot set arbitrary mandates on production practices for farmers across the country. 

    Last year, Feenstra also voted to pass a Farm Bill out of the U.S. House Agriculture Committee that would have repealed Proposition 12.

    You can watch Feenstra’s full remarks HERE.

    MIL OSI USA News –

  • MIL-OSI Canada: Governments of Canada and Manitoba investing over $6 million to strengthen local food processing sector

    Source: Government of Canada News (2)

    July 23, 2025 – Brandon, Manitoba – Agriculture and Agri-Food Canada

    The governments of Canada and Manitoba are investing more than $6 million to help modernize food processing facilities and increase food production capacity across Manitoba under the Sustainable Canadian Agricultural Partnership (Sustainable CAP), federal Agriculture and Agri-Food Minister Heath MacDonald and Manitoba Agriculture Minister Ron Kostyshyn announced today.

    Nineteen food processors in Manitoba have been approved for funding for equipment upgrades, facility expansions, and new technologies that will improve efficiency, production capacity, and environmental performance.

    Some of the approved projects include:

    • Jowett Farms in Blumenort, for refrigeration and line speed improvements
    • River Valley Specialty Farms Inc., in Bagot, for installation of high-accuracy sorter
    • Prairie Flour Mills Ltd., in Elie, for grain receiving expansion
    • Buffalo Creek Mills in Altona, for doubling capacity of oat flaking
    • Prairie Fava Ltd., in Glenboro, for increasing storage capacity

    MIL OSI Canada News –

  • MIL-OSI: SOUTHERN MISSOURI BANCORP REPORTS PRELIMINARY RESULTS FOR FOURTH QUARTER OF FISCAL 2025; DECLARES QUARTERLY DIVIDEND OF $0.25 PER COMMON SHARE; CONFERENCE CALL SCHEDULED FOR THURSDAY, JULY 24, AT 9:30 AM CENTRAL TIME

    Source: GlobeNewswire (MIL-OSI)

    Poplar Bluff, Missouri, July 23, 2025 (GLOBE NEWSWIRE) — Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the fourth quarter of fiscal 2025 of $15.8 million, an increase of $2.3 million or 16.7%, as compared to the same period of the prior fiscal year. The increase was primarily attributable to higher net interest income and lower provision for income taxes. This was partially offset by higher provision for credit loss (PCL), noninterest expense, and lower noninterest income. Preliminary net income was $1.39 per fully diluted common share for the fourth quarter of fiscal 2025, an increase of $0.20 as compared to the $1.19 per fully diluted common share reported for the same period of the prior fiscal year. For the full fiscal year 2025, preliminary net income of $58.6 million was an increase of $8.4 million as compared to fiscal 2024, while diluted earnings per share for fiscal 2025 were $5.18, an increase of $0.76 as compared to the $4.42 per fully diluted common share for fiscal 2024.

    Highlights for the fourth quarter of fiscal 2025:

    • Earnings per common share (diluted) were $1.39, up $0.20, or 16.8%, as compared to the same quarter a year ago, and remained unchanged from the third quarter of fiscal 2025, the linked quarter.
    • Annualized return on average assets (ROA) was 1.27%, while annualized return on average common equity (ROE) was 11.8%, as compared to 1.17% and 11.2%, respectively, in the same quarter a year ago, and 1.27% and 12.1%, respectively, in the third quarter of fiscal 2025, the linked quarter.
    • Net interest margin for the quarter was 3.46%, up from the 3.25% reported for the year ago period, and up from 3.39% reported for the third quarter of fiscal 2025, the linked quarter. Net interest income increased $5.2 million, or 14.9% as compared to the same quarter a year ago, and increased $854,000, or 2.2% as compared to the third quarter of fiscal 2025, the linked quarter.
    • Noninterest income was down 6.3% for the quarter, as compared to the year ago period, but up 9.2% as compared to the third quarter of fiscal 2025, the linked quarter. The decrease compared to the year ago period was primarily due to tax credit benefits recorded in the prior fiscal year as noninterest income, but recognized in the current period as a direct reduction from the provision for income taxes under the proportional amortization method of ASU 2023-02. In addition, the Company realized a modest negative adjustment to the value of mortgage servicing rights. The increase in non-interest income compared to the linked quarter was largely due to additional card network fees based on volume incentives totaling $537,000.
    • Gross loan balances increased by $76.2 million during the fourth quarter, and increased by $249.9 million, or 6.5% during all of fiscal 2025.
    • PCL was $2.5 million during the fourth quarter of fiscal 2025, a $1.6 million increase from both the year ago period and the third quarter of fiscal 2025, the linked quarter. The increase was primarily driven by higher net charge-offs, largely stemming from a previously identified non-performing special-purpose commercial real estate credit relationship disclosed in the prior quarter and to support loan growth. See “Balance Sheet Summary” below for more detailed information regarding this credit relationship.
    • Deposit balances increased by $19.9 million during the fourth quarter, and increased by $338.3 million, or 8.6% during all of fiscal 2025.
    • Cash equivalents and time deposits balances decreased by $34.0 million during the fourth quarter, and increased $131.7 million during all of fiscal 2025, which was driven by deposit growth and earnings retention after cash dividends paid outpacing gross loan and other asset growth.
    • Tangible book value per share was $41.87, having increased by $5.19, or 14.1%, as compared to June 30, 2024.

    Dividend Declared:

    The Board of Directors, on July 22, 2025, declared a quarterly cash dividend on common stock of $0.25 per share, payable August 29, 2025, to stockholders of record at the close of business on August 15, 2025, marking the 125th consecutive quarterly dividend since the inception of the Company. The dividend represents an increase of $0.02 per share, or 8.7%, as compared to the previous quarterly dividend payment. The Board of Directors and management believe the payment of a quarterly cash dividend enhances stockholder value and demonstrates our commitment to and confidence in our future prospects.

    Conference Call:

    The Company will host a conference call to review the information provided in this press release on Thursday, July 24, 2025, at 9:30 a.m., central time. The call will be available live to interested parties by calling 1-833-470-1428 in the United States and from all other locations. Participants should use participant access code 617584. Telephone playback will be available beginning one hour following the conclusion of the call through July 29, 2025. The playback may be accessed by dialing 1-866-813-9403, and using the conference passcode 612450.

    Balance Sheet Summary:

    The Company experienced balance sheet growth in fiscal 2025, with total assets of $5.0 billion at June 30, 2025, reflecting an increase of $415.3 million, or 9.0%, as compared to June 30, 2024. Growth primarily reflected an increase in net loans receivable, cash equivalents, and available-for-sale (AFS) securities.

    Cash equivalents and time deposits were $193.1 million at June 30, 2025, an increase of $131.7 million, or 214.5%, as compared to June 30, 2024. Compared to March 31, 2025, the linked quarter, cash equivalents decreased $34.0 million, or 15.0%, primarily utilized to fund loan growth, which was partially offset by deposit growth and earnings retention after cash dividends paid. AFS securities were $460.8 million at June 30, 2025, up $32.9 million, or 7.7%, as compared to June 30, 2024.

    Loans, net of the allowance for credit losses (ACL), were $4.0 billion at June 30, 2025, an increase of $250.8 million, or 6.6%, as compared to June 30, 2024. Gross loans increased by $249.9 million, while the ACL attributable to outstanding loan balances decreased $887,000, or 1.7%, as compared to June 30, 2024. The increase in loan balances was attributable to growth in residential real estate loans, commercial and industrial loans, drawn construction loan balances, multi-family real estate loans, and agricultural production draws. This was partially offset by payoffs and paydowns in non-owner occupied commercial real estate and consumer loans. The table below illustrates changes in loan balances by type over recent periods:

                                   
    Summary Loan Data as of:      June 30,      Mar. 31,      Dec. 31,      Sep. 30,      June 30,
    (dollars in thousands)   2025   2025   2024   2024   2024
                                   
    1-4 residential real estate   $ 991,553   $ 978,908   $ 967,196   $ 942,916   $ 925,397
    Non-owner occupied commercial real estate     888,317     897,125     882,484     903,678     899,770
    Owner occupied commercial real estate     442,984     440,282     435,392     438,030     427,476
    Multi-family real estate     422,758     405,445     376,081     371,177     384,564
    Construction and land development     332,405     323,499     393,388     351,481     290,541
    Agriculture real estate     244,983     247,027     239,912     239,787     232,520
    Total loans secured by real estate     3,323,000     3,292,286     3,294,453     3,247,069     3,160,268
                                   
    Commercial and industrial     510,259     488,116     484,799     457,018     450,147
    Agriculture production     206,128     186,058     188,284     200,215     175,968
    Consumer     55,387     54,022     56,017     58,735     59,671
    All other loans     5,102     3,216     3,628     3,699     3,981
    Total loans     4,099,876     4,023,698     4,027,181     3,966,736     3,850,035
                                   
    Deferred loan fees, net     (178)     (189)     (202)     (218)     (232)
    Gross loans     4,099,698     4,023,509     4,026,979     3,966,518     3,849,803
    Allowance for credit losses     (51,629)     (54,940)     (54,740)     (54,437)     (52,516)
    Net loans   $ 4,048,069   $ 3,968,569   $ 3,972,239   $ 3,912,081   $ 3,797,287

    Loans anticipated to fund in the next 90 days totaled $224.1 million at June 30, 2025, as compared to $163.3 million at March 31, 2025, and $157.1 million at June 30, 2024.

    The Bank’s concentration in non-owner occupied commercial real estate loans is estimated at 301.9% of Tier 1 capital and ACL at June 30, 2025, as compared to 317.5% as of June 30, 2024, with these loans representing 40.1% of total loans at June 30, 2025. Multi-family residential real estate, hospitality (hotels/restaurants), care facilities, strip centers, retail stand-alone, and storage units are the most common collateral types within the non-owner occupied commercial real estate loan portfolio. The multi-family residential real estate loan portfolio commonly includes loans collateralized by properties currently in the low-income housing tax credit (LIHTC) program or that have exited the program. The hospitality and retail stand-alone segments include primarily franchised businesses; care facilities consisting mainly of skilled nursing and assisted living centers; and strip centers, which can be defined as non-mall shopping centers with a variety of tenants. Non-owner occupied office property types included 33 loans totaling $24.3 million, or 0.59% of total loans at June 30, 2025, none of which were adversely classified as of June 30, 2025, and are generally comprised of smaller spaces with diverse tenants. The Company continues to monitor its commercial real estate concentration and the individual segments closely.

    Nonperforming loans (NPLs) were $23.0 million, or 0.56% of gross loans, at June 30, 2025, as compared to $6.7 million, or 0.17% of gross loans, at June 30, 2024. Nonperforming assets (NPAs) were $23.7 million, or 0.47% of total assets, at June 30, 2025, as compared to $10.6 million, or 0.23% of total assets, at June 30, 2024. The rise in NPAs reflects an increase in NPLs, which was partially offset by a decrease in other real estate owned. Compared to March 31, 2025, the linked quarter, NPAs declined $104,000. The year-over-year increase in NPLs was primarily driven by several commercial relationships added during the third and fourth quarters of fiscal 2025, along with the addition of other smaller loans throughout the year, partially offset by net charge-offs. In the fourth quarter, a $5.7 million construction loan related to the development of a senior living facility was placed on nonaccrual status. As previously disclosed in the third quarter, three commercial loans with common guarantors, which are primarily secured by two non-owner-occupied, special-purpose commercial properties located in different states, were also added to NPLs. These properties, which were previously leased to a single tenant that has since become insolvent, are now vacant. Some guarantors are shared across these three loans. The total balance of these three loans at fiscal year end 2025 was $6.2 million, after recognition of $3.8 million charge-offs in the current quarter that were previously reserved for in the linked quarter.

    The ACL at June 30, 2025, totaled $51.6 million, representing 1.26% of gross loans and 224% of nonperforming loans, as compared to an ACL of $52.5 million, representing 1.36% of gross loans and 786% of nonperforming loans, at June 30, 2024. The Company has estimated its expected credit losses as of June 30, 2025, under ASC 326-20, and management believes the ACL as of that date was adequate based on that estimate. There remains, however, significant uncertainty as borrowers adjust to relatively high market interest rates, although the Federal Reserve has reduced short-term rates somewhat during this fiscal year. The decrease in the ACL was primarily attributable to net charge-offs, which reduced the required reserves for individually evaluated loans, as well as a decline in certain qualitative adjustments relevant to assessing expected credit losses. This decrease was partially offset by higher required reserves for pooled loans, reflecting management’s updated view of a deteriorating economic outlook and an increase in modeled loss drivers compared to the prior assessment as of June 30, 2024. Additional provisions were also recorded to support loan growth and overdraft exposures during fiscal year 2025. As a percentage of average loans outstanding, the Company recorded net charge offs of 0.53% (annualized) during the current quarter, as compared to 0.06% for the same quarter of the prior fiscal year. In the three-month period ended June 30, 2025, net charge offs were $5.3 million, with the increase from prior periods primarily attributable to the $3.8 million special-purpose CRE charge off noted above, and a $742,000 commercial and industrial charge off related to a commercial contractor. For fiscal year 2025, net charge offs as a percentage of average loans were 0.17%, as compared to 0.05% for fiscal year 2024.

    Total liabilities were $4.5 billion at June 30, 2025, an increase of $359.3 million, or 8.7%, as compared to June 30, 2024. Growth primarily reflected increases in total deposits, other liabilities, accrued interest and income taxes payable, and securities sold under agreement to repurchase.

    Deposits were $4.3 billion at June 30, 2025, an increase of $338.3 million, or 8.6%, as compared to June 30, 2024. The deposit portfolio saw increases in certificates of deposit and savings accounts, as customers remained willing to move balances into special rate time deposits and high yield savings accounts in the higher rate environment. Public unit balances totaled $550.8 million at June 30, 2025, a decrease of $43.8 million compared to June 30, 2024, mostly due to the Company losing the bid to retain a larger local public unit depositor early in the fiscal year. Brokered deposits totaled $233.6 million at June 30, 2025, an increase of $61.9 million as compared to June 30, 2024. The average loan-to-deposit ratio for the fourth quarter of fiscal 2025 was 94.5%, as compared to 96.3% for the same period of the prior fiscal year. The period end loan-to-deposit ratios were 95.8% and 97.6% as of June 30, 2024, and 2025, respectively. The table below illustrates changes in deposit balances by type over recent periods:    

                                   
    Summary Deposit Data as of:      June 30,      Mar. 31,      Dec. 31,      Sep. 30,      June 30,
    (dollars in thousands)   2025   2025   2024   2024   2024
                                   
    Non-interest bearing deposits   $ 508,110   $ 513,418   $ 514,199   $ 503,209   $ 514,107
    NOW accounts     1,132,298     1,167,296     1,211,402     1,128,917     1,239,663
    MMDAs – non-brokered     329,837     345,810     347,271     320,252     334,774
    Brokered MMDAs     1,414     2,013     3,018     12,058     2,025
    Savings accounts     661,115     626,175     573,291     556,030     517,084
    Total nonmaturity deposits     2,632,774     2,654,712     2,649,181     2,520,466     2,607,653
                                   
    Certificates of deposit – non-brokered     1,414,945     1,373,109     1,310,421     1,258,583     1,163,650
    Brokered certificates of deposit     233,649     233,561     251,025     261,093     171,756
    Total certificates of deposit     1,648,594     1,606,670     1,561,446     1,519,676     1,335,406
                                   
    Total deposits   $ 4,281,368   $ 4,261,382   $ 4,210,627   $ 4,040,142   $ 3,943,059
                                   
    Public unit nonmaturity accounts   $ 435,632   $ 472,010   $ 482,406   $ 447,638   $ 541,445
    Public unit certificates of deposit     115,204     103,741     83,506     62,882     53,144
    Total public unit deposits   $ 550,836   $ 575,751   $ 565,912   $ 510,520   $ 594,589

    FHLB advances were $104.1 million at June 30, 2025, an increase of $2.0 million, or 2.0%, as compared to June 30, 2024.

    The Company’s stockholders’ equity was $544.7 million at June 30, 2025, an increase of $55.9 million, or 11.4%, as compared to June 30, 2024. The increase was attributable primarily to earnings retained after cash dividends paid, in combination with a $6.1 million reduction in accumulated other comprehensive losses (AOCL) as the market value of the Company’s investments appreciated due to the decrease in market interest rates. The AOCL totaled $11.4 million at June 30, 2025, as compared to $17.5 million at June 30, 2024. The Company does not hold any securities classified as held-to-maturity.    

    Quarterly Income Statement Summary:

    The Company’s net interest income for the three-month period ended June 30, 2025, was $40.3 million, an increase of $5.2 million, or 14.9%, as compared to the same period of the prior fiscal year. The increase was attributable to a 7.9% increase in the average balance of interest-earning assets in the current three-month period compared to the same period a year ago, and an increase of 21 basis points in the net interest margin, from 3.25% to 3.46%. The primary driver of the net interest margin expansion, compared to the year ago period, was the cost of interest-bearing liabilities decreasing 20 basis points, while the yield on interest-earning assets increased seven basis points. The overall increase in spread of 27 basis points was partially offset by a lower level of average interest-earning assets to average interest-bearing liabilities totaling 120.6% at June 30, 2025, down 1.1 percentage points compared to the year ago period, due to stronger deposit growth.

    Loan discount accretion and deposit premium amortization related to the November 2018 acquisition of First Commercial Bank, the May 2020 acquisition of Central Federal Savings & Loan Association, the February 2022 merger of FortuneBank, and the January 2023 acquisition of Citizens Bank & Trust resulted in $612,000 in net interest income for the three-month period ended June 30, 2025, as compared to $1.1 million in net interest income for the same period a year ago. Combined, this component of net interest income contributed five basis points to net interest margin in the three-month period ended June 30, 2025, as compared to a ten basis point contribution for the same period of the prior fiscal year, and as compared to a 13-basis point contribution in the linked quarter, ended March 31, 2025, when net interest margin was 3.39%.

    The Company recorded a PCL of $2.5 million in the three-month period ended June 30, 2025, as compared to a PCL of $900,000 in the same period of the prior fiscal year. The current period PCL was the result of a $2.0 million provision attributable to the ACL for loan balances outstanding and a $475,000 provision attributable to the allowance for off-balance sheet credit exposures. The increase was primarily attributable to providing for net charge-offs and to support loan growth, in addition to an increase in unfunded balances and an increase in the expected funding rate on available credit.

    The Company’s noninterest income for the three-month period ended June 30, 2025, was $7.3 million, a decrease of $487,000, or 6.3%, as compared to the same period of the prior fiscal year. The decrease was attributable to lower other noninterest income and loan servicing fees. The decrease in other noninterest income was associated with the change in accounting for realization of tax credits, as the Company has adopted the proportional amortization method under ASU 2023-02, which results in a direct reduction to the provision for income taxes in fiscal 2025. The tax credit benefit recognized in other noninterest income in the three-month period ended June 2024 was $675,000. Loan servicing fees were negatively impacted by the recognition of a change in the fair value of mortgage servicing rights, which in the fourth quarter of fiscal 2025 resulted in a negative adjustment of $108,000, as compared to a benefit of $131,000 in the same period a year ago, due to changes in market rates and prepayment assumptions. These decreases as compared to the prior year period were partially offset by increases in other loan fees attributable to increased loan originations and higher deposit account charges and related fees primarily attributable to an increase in non-sufficient fund activity and an increase in maintenance and activity fees collected.

    Noninterest expense for the three-month period ended June 30, 2025, was $26.0 million, an increase of $974,000, or 3.9%, as compared to the same period of the prior fiscal year. The increase as compared to the year-ago period was primarily attributable to increases in legal and professional fees, data processing expense, and other noninterest expense. The Company experienced elevated legal and professional fees associated with consulting costs to negotiate a new contract with a large vendor totaling $425,000. Data processing expense increased due to an increase in third party ancillary software expenses and one-time reclassification of data processing expenses to other categories in the year-ago period. The increase in other noninterest expense was primarily due to card fraud losses and deposit product expenses. These increases as compared to the prior year period were partially offset by decreases in intangible amortization expense, as the core deposit intangible recognized in an older merger was fully amortized in the second quarter of fiscal 2025, and by reduced telecommunication expenses.

    The efficiency ratio for the three-month period ended June 30, 2025, was 54.6%, as compared to 58.3% in the same period of the prior fiscal year. The improvement was attributable to net interest income growing faster than operating expenses.

    The income tax provision was $3.4 million for the three-month period ended June 30, 2025, and for the same period of the prior fiscal year. The effective tax rate for the fourth quarter of fiscal year 2025 was 17.5%, as compared to 20.2% in the same period of the prior fiscal year. The decrease in the effective tax rate was primarily attributable to a $701,000 income tax benefit from the recognition of tax credits utilizing the proportional amortization method under ASC 2023-02. In the same period of the prior fiscal year, similar benefits were recognized through noninterest income.

    Forward-Looking Information:

    Except for the historical information contained herein, the matters discussed in this press release may be deemed to be forward-looking statements that are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from the forward-looking statements, including: potential adverse impacts to the economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, expected cost savings, synergies and other benefits from our merger and acquisition activities might not be realized to the extent expected, within the anticipated time frames, or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention and labor shortages, might be greater than expected and goodwill impairment charges might be incurred; the strength of the United States economy in general and the strength of local economies in which we conduct operations; fluctuations in interest rates and the possibility of a recession; monetary and fiscal policies of the FRB and the U.S. Government and other governmental initiatives affecting the financial services industry; potential imposition of new or increased tariffs or changes to existing trade policies that could affect economic activity or specific industry sectors; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors’ products and services; fluctuations in real estate values in both residential and commercial real estate markets, as well as agricultural business conditions; demand for loans and deposits; legislative or regulatory changes that adversely affect our business; changes in accounting principles, policies, or guidelines; results of regulatory examinations, including the possibility that a regulator may, among other things, require an increase in our reserve for credit losses or write-down of assets; the impact of technological changes; and our success at managing the risks involved in the foregoing. Any forward-looking statements are based upon management’s beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed might not occur, and you should not put undue reliance on any forward-looking statements.   

    Southern Missouri Bancorp, Inc.
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

                                     
    Summary Balance Sheet Data as of:      June 30,      Mar. 31,      Dec. 31,      Sep. 30,      June 30,  
    (dollars in thousands, except per share data)   2025   2025   2024   2024   2024  
                                     
    Cash equivalents and time deposits   $ 193,105   $ 227,136   $ 146,078   $ 75,591   $ 61,395  
    Available for sale (AFS) securities     460,844     462,930     468,060     420,209     427,903  
    FHLB/FRB membership stock     18,500     18,269     18,099     18,064     17,802  
    Loans held for sale     431     —     —     —     —  
    Loans receivable, gross     4,099,698     4,023,509     4,026,979     3,966,518     3,849,803  
    Allowance for credit losses     51,629     54,940     54,740     54,437     52,516  
    Loans receivable, net     4,048,069     3,968,569     3,972,239     3,912,081     3,797,287  
    Bank-owned life insurance     75,691     75,156     74,643     74,119     73,601  
    Intangible assets     73,721     74,677     75,399     76,340     77,232  
    Premises and equipment     95,982     95,987     96,418     96,087     95,952  
    Other assets     53,264     53,772     56,738     56,709     53,144  
    Total assets   $ 5,019,607   $ 4,976,496   $ 4,907,674   $ 4,729,200   $ 4,604,316  
                                     
    Interest-bearing deposits   $ 3,773,258   $ 3,747,964   $ 3,696,428   $ 3,536,933   $ 3,428,952  
    Noninterest-bearing deposits     508,110     513,418     514,199     503,209     514,107  
    Securities sold under agreements to repurchase     15,000     15,000     15,000     15,000     9,398  
    FHLB advances     104,072     104,072     107,070     107,069     102,050  
    Other liabilities     51,267     44,057     39,424     38,191     37,905  
    Subordinated debt     23,208     23,195     23,182     23,169     23,156  
    Total liabilities     4,474,915     4,447,706     4,395,303     4,223,571     4,115,568  
                                     
    Total stockholders’ equity     544,692     528,790     512,371     505,629     488,748  
                                     
    Total liabilities and stockholders’ equity   $ 5,019,607   $ 4,976,496   $ 4,907,674   $ 4,729,200   $ 4,604,316  
                                     
    Equity to assets ratio     10.85 %     10.63 %     10.44 %     10.69 %     10.61 %
                                     
    Common shares outstanding     11,299,467     11,299,962     11,277,167     11,277,167     11,277,737  
    Less: Restricted common shares not vested     50,163     50,658     46,653     56,553     57,956  
    Common shares for book value determination     11,249,304     11,249,304     11,230,514     11,220,614     11,219,781  
                                     
    Book value per common share   $ 48.42   $ 47.01   $ 45.62   $ 45.06   $ 43.56  
    Less: Intangible assets per common share     6.55     6.64     6.71     6.80     6.88  
    Tangible book value per common share (1)     41.87     40.37     38.91     38.26     36.68  
    Closing market price     54.78     52.02     57.37     56.49     45.01  

    (1)   Non-GAAP financial measure.

                                     
    Nonperforming asset data as of:      June 30,      Mar. 31,      Dec. 31,      Sep. 30,      June 30,  
    (dollars in thousands)   2025   2025   2024   2024   2024  
                                     
    Nonaccrual loans   $ 23,040   $ 21,970   $ 8,309   $ 8,206   $ 6,680  
    Accruing loans 90 days or more past due     —     —     —     —     —  
    Total nonperforming loans     23,040     21,970     8,309     8,206     6,680  
    Other real estate owned (OREO)     625     1,775     2,423     3,842     3,865  
    Personal property repossessed     32     56     37     21     23  
    Total nonperforming assets   $ 23,697   $ 23,801   $ 10,769   $ 12,069   $ 10,568  
                                     
    Total nonperforming assets to total assets     0.47 %     0.48 %     0.22 %     0.26 %     0.23 %  
    Total nonperforming loans to gross loans     0.56 %     0.55 %     0.21 %     0.21 %     0.17 %  
    Allowance for credit losses to nonperforming loans     224.08 %     250.07 %     658.80 %     663.38 %     786.17 %  
    Allowance for credit losses to gross loans     1.26 %     1.37 %     1.36 %     1.37 %     1.36 %  
                                     
    Performing modifications to borrowers experiencing financial difficulty   $ 26,642   $ 23,304   $ 24,083   $ 24,340   $ 24,602  
                                   
        For the three-month period ended
    Quarterly Summary Income Statement Data:   June 30,      Mar. 31,      Dec. 31,      Sep. 30,      June 30,
    (dollars in thousands, except per share data)      2025   2025   2024   2024   2024
                                   
    Interest income:                                   
    Cash equivalents   $ 1,698   $ 1,585   $ 784   $ 78   $ 541
    AFS securities and membership stock     5,586     5,684     5,558     5,547     5,677
    Loans receivable     63,354     62,656     63,082     61,753     58,449
    Total interest income     70,638     69,925     69,424     67,378     64,667
    Interest expense:                              
    Deposits     28,644     28,795     29,538     28,796     27,999
    Securities sold under agreements to repurchase     191     189     226     160     125
    FHLB advances     1,080     1,076     1,099     1,326     1,015
    Subordinated debt     390     386     418     435     433
    Total interest expense     30,305     30,446     31,281     30,717     29,572
    Net interest income     40,333     39,479     38,143     36,661     35,095
    Provision for credit losses     2,500     932     932     2,159     900
    Noninterest income:                              
    Deposit account charges and related fees     2,156     2,048     2,237     2,184     1,978
    Bank card interchange income     1,839     1,341     1,301     1,499     1,770
    Loan late charges     —     —     —     —     170
    Loan servicing fees     167     224     232     286     494
    Other loan fees     917     843     944     1,063     617
    Net realized gains on sale of loans     143     114     133     361     97
    Net realized gains (losses) on sale of AFS securities     —     48     —     —     —
    Earnings on bank owned life insurance     533     512     522     517     498
    Insurance brokerage commissions     368     340     300     287     331
    Wealth management fees     825     902     843     730     838
    Other noninterest income     332     294     353     247     974
    Total noninterest income     7,280     6,666     6,865     7,174     7,767
    Noninterest expense:                              
    Compensation and benefits     13,852     13,771     13,737     14,397     13,894
    Occupancy and equipment, net     3,745     3,869     3,585     3,689     3,790
    Data processing expense     2,573     2,359     2,224     2,171     1,929
    Telecommunications expense     312     330     354     428     468
    Deposit insurance premiums     601     674     588     472     638
    Legal and professional fees     1,165     603     619     1,208     516
    Advertising     551     530     442     546     640
    Postage and office supplies     336     350     283     306     308
    Intangible amortization     857     889     897     897     1,018
    Foreclosed property expenses, net     (18)     37     73     12     52
    Other noninterest expense     2,002     1,979     2,074     1,715     1,749
    Total noninterest expense     25,976     25,391     24,876     25,841     25,002
    Net income before income taxes     19,137     19,822     19,200     15,835     16,960
    Income taxes     3,351     4,139     4,547     3,377     3,430
    Net income     15,786     15,683     14,653     12,458     13,530
    Less: Distributed and undistributed earnings allocated                              
    to participating securities     71     71     61     62     69
    Net income available to common shareholders   $ 15,715   $ 15,612   $ 14,592   $ 12,396   $ 13,461
                                   
    Basic earnings per common share   $ 1.40   $ 1.39   $ 1.30   $ 1.10   $ 1.19
    Diluted earnings per common share     1.39     1.39     1.30     1.10     1.19
    Dividends per common share     0.23     0.23     0.23     0.23     0.21
    Average common shares outstanding:                              
    Basic     11,250,000     11,238,000     11,231,000     11,221,000     11,276,000
    Diluted     11,270,000     11,262,000     11,260,000     11,240,000     11,283,000
                                     
        For the three-month period ended  
    Quarterly Average Balance Sheet Data:   June 30,      Mar. 31,      Dec. 31,      Sep. 30,      June 30,  
    (dollars in thousands)      2025   2025   2024   2024   2024  
                                     
    Interest-bearing cash equivalents   $ 151,380   $ 143,206   $ 64,976   $ 5,547   $ 39,432  
    AFS securities and membership stock     498,491     508,642     479,633     460,187     476,198  
    Loans receivable, gross     4,018,769     4,003,552     3,989,643     3,889,740     3,809,209  
    Total interest-earning assets     4,668,640     4,655,400     4,534,252     4,355,474     4,324,839  
    Other assets     299,217     290,739     291,217     283,056     285,956  
    Total assets   $ 4,967,857   $ 4,946,139   $ 4,825,469   $ 4,638,530   $ 4,610,795  
                                     
    Interest-bearing deposits   $ 3,727,836   $ 3,737,849   $ 3,615,767   $ 3,416,752   $ 3,417,360  
    Securities sold under agreements to repurchase     15,000     15,000     15,000     12,321     9,398  
    FHLB advances     104,053     106,187     107,054     123,723     102,757  
    Subordinated debt     23,201     23,189     23,175     23,162     23,149  
    Total interest-bearing liabilities     3,870,090     3,882,225     3,760,996     3,575,958     3,552,664  
    Noninterest-bearing deposits     524,860     513,157     524,878     531,946     539,637  
    Other noninterest-bearing liabilities     37,014     31,282     31,442     33,737     35,198  
    Total liabilities     4,431,964     4,426,664     4,317,316     4,141,641     4,127,499  
                                     
    Total stockholders’ equity     535,893     519,475     508,153     496,889     483,296  
                                     
    Total liabilities and stockholders’ equity   $ 4,967,857   $ 4,946,139   $ 4,825,469   $ 4,638,530   $ 4,610,795  
                                     
    Return on average assets     1.27 %     1.27 %     1.21 %     1.07 %     1.17 %
    Return on average common stockholders’ equity     11.8 %     12.1 %     11.5 %     10.0 %     11.2 %
                                     
    Net interest margin     3.46 %     3.39 %     3.36 %     3.37 %     3.25 %
    Net interest spread     2.92 %     2.87 %     2.79 %     2.75 %     2.65 %
                                     
    Efficiency ratio     54.6 %     55.1 %     55.3 %     59.0 %     58.3 %

    The MIL Network –

  • MIL-OSI: SOUTHERN MISSOURI BANCORP REPORTS PRELIMINARY RESULTS FOR FOURTH QUARTER OF FISCAL 2025; DECLARES QUARTERLY DIVIDEND OF $0.25 PER COMMON SHARE; CONFERENCE CALL SCHEDULED FOR THURSDAY, JULY 24, AT 9:30 AM CENTRAL TIME

    Source: GlobeNewswire (MIL-OSI)

    Poplar Bluff, Missouri, July 23, 2025 (GLOBE NEWSWIRE) — Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the fourth quarter of fiscal 2025 of $15.8 million, an increase of $2.3 million or 16.7%, as compared to the same period of the prior fiscal year. The increase was primarily attributable to higher net interest income and lower provision for income taxes. This was partially offset by higher provision for credit loss (PCL), noninterest expense, and lower noninterest income. Preliminary net income was $1.39 per fully diluted common share for the fourth quarter of fiscal 2025, an increase of $0.20 as compared to the $1.19 per fully diluted common share reported for the same period of the prior fiscal year. For the full fiscal year 2025, preliminary net income of $58.6 million was an increase of $8.4 million as compared to fiscal 2024, while diluted earnings per share for fiscal 2025 were $5.18, an increase of $0.76 as compared to the $4.42 per fully diluted common share for fiscal 2024.

    Highlights for the fourth quarter of fiscal 2025:

    • Earnings per common share (diluted) were $1.39, up $0.20, or 16.8%, as compared to the same quarter a year ago, and remained unchanged from the third quarter of fiscal 2025, the linked quarter.
    • Annualized return on average assets (ROA) was 1.27%, while annualized return on average common equity (ROE) was 11.8%, as compared to 1.17% and 11.2%, respectively, in the same quarter a year ago, and 1.27% and 12.1%, respectively, in the third quarter of fiscal 2025, the linked quarter.
    • Net interest margin for the quarter was 3.46%, up from the 3.25% reported for the year ago period, and up from 3.39% reported for the third quarter of fiscal 2025, the linked quarter. Net interest income increased $5.2 million, or 14.9% as compared to the same quarter a year ago, and increased $854,000, or 2.2% as compared to the third quarter of fiscal 2025, the linked quarter.
    • Noninterest income was down 6.3% for the quarter, as compared to the year ago period, but up 9.2% as compared to the third quarter of fiscal 2025, the linked quarter. The decrease compared to the year ago period was primarily due to tax credit benefits recorded in the prior fiscal year as noninterest income, but recognized in the current period as a direct reduction from the provision for income taxes under the proportional amortization method of ASU 2023-02. In addition, the Company realized a modest negative adjustment to the value of mortgage servicing rights. The increase in non-interest income compared to the linked quarter was largely due to additional card network fees based on volume incentives totaling $537,000.
    • Gross loan balances increased by $76.2 million during the fourth quarter, and increased by $249.9 million, or 6.5% during all of fiscal 2025.
    • PCL was $2.5 million during the fourth quarter of fiscal 2025, a $1.6 million increase from both the year ago period and the third quarter of fiscal 2025, the linked quarter. The increase was primarily driven by higher net charge-offs, largely stemming from a previously identified non-performing special-purpose commercial real estate credit relationship disclosed in the prior quarter and to support loan growth. See “Balance Sheet Summary” below for more detailed information regarding this credit relationship.
    • Deposit balances increased by $19.9 million during the fourth quarter, and increased by $338.3 million, or 8.6% during all of fiscal 2025.
    • Cash equivalents and time deposits balances decreased by $34.0 million during the fourth quarter, and increased $131.7 million during all of fiscal 2025, which was driven by deposit growth and earnings retention after cash dividends paid outpacing gross loan and other asset growth.
    • Tangible book value per share was $41.87, having increased by $5.19, or 14.1%, as compared to June 30, 2024.

    Dividend Declared:

    The Board of Directors, on July 22, 2025, declared a quarterly cash dividend on common stock of $0.25 per share, payable August 29, 2025, to stockholders of record at the close of business on August 15, 2025, marking the 125th consecutive quarterly dividend since the inception of the Company. The dividend represents an increase of $0.02 per share, or 8.7%, as compared to the previous quarterly dividend payment. The Board of Directors and management believe the payment of a quarterly cash dividend enhances stockholder value and demonstrates our commitment to and confidence in our future prospects.

    Conference Call:

    The Company will host a conference call to review the information provided in this press release on Thursday, July 24, 2025, at 9:30 a.m., central time. The call will be available live to interested parties by calling 1-833-470-1428 in the United States and from all other locations. Participants should use participant access code 617584. Telephone playback will be available beginning one hour following the conclusion of the call through July 29, 2025. The playback may be accessed by dialing 1-866-813-9403, and using the conference passcode 612450.

    Balance Sheet Summary:

    The Company experienced balance sheet growth in fiscal 2025, with total assets of $5.0 billion at June 30, 2025, reflecting an increase of $415.3 million, or 9.0%, as compared to June 30, 2024. Growth primarily reflected an increase in net loans receivable, cash equivalents, and available-for-sale (AFS) securities.

    Cash equivalents and time deposits were $193.1 million at June 30, 2025, an increase of $131.7 million, or 214.5%, as compared to June 30, 2024. Compared to March 31, 2025, the linked quarter, cash equivalents decreased $34.0 million, or 15.0%, primarily utilized to fund loan growth, which was partially offset by deposit growth and earnings retention after cash dividends paid. AFS securities were $460.8 million at June 30, 2025, up $32.9 million, or 7.7%, as compared to June 30, 2024.

    Loans, net of the allowance for credit losses (ACL), were $4.0 billion at June 30, 2025, an increase of $250.8 million, or 6.6%, as compared to June 30, 2024. Gross loans increased by $249.9 million, while the ACL attributable to outstanding loan balances decreased $887,000, or 1.7%, as compared to June 30, 2024. The increase in loan balances was attributable to growth in residential real estate loans, commercial and industrial loans, drawn construction loan balances, multi-family real estate loans, and agricultural production draws. This was partially offset by payoffs and paydowns in non-owner occupied commercial real estate and consumer loans. The table below illustrates changes in loan balances by type over recent periods:

                                   
    Summary Loan Data as of:      June 30,      Mar. 31,      Dec. 31,      Sep. 30,      June 30,
    (dollars in thousands)   2025   2025   2024   2024   2024
                                   
    1-4 residential real estate   $ 991,553   $ 978,908   $ 967,196   $ 942,916   $ 925,397
    Non-owner occupied commercial real estate     888,317     897,125     882,484     903,678     899,770
    Owner occupied commercial real estate     442,984     440,282     435,392     438,030     427,476
    Multi-family real estate     422,758     405,445     376,081     371,177     384,564
    Construction and land development     332,405     323,499     393,388     351,481     290,541
    Agriculture real estate     244,983     247,027     239,912     239,787     232,520
    Total loans secured by real estate     3,323,000     3,292,286     3,294,453     3,247,069     3,160,268
                                   
    Commercial and industrial     510,259     488,116     484,799     457,018     450,147
    Agriculture production     206,128     186,058     188,284     200,215     175,968
    Consumer     55,387     54,022     56,017     58,735     59,671
    All other loans     5,102     3,216     3,628     3,699     3,981
    Total loans     4,099,876     4,023,698     4,027,181     3,966,736     3,850,035
                                   
    Deferred loan fees, net     (178)     (189)     (202)     (218)     (232)
    Gross loans     4,099,698     4,023,509     4,026,979     3,966,518     3,849,803
    Allowance for credit losses     (51,629)     (54,940)     (54,740)     (54,437)     (52,516)
    Net loans   $ 4,048,069   $ 3,968,569   $ 3,972,239   $ 3,912,081   $ 3,797,287

    Loans anticipated to fund in the next 90 days totaled $224.1 million at June 30, 2025, as compared to $163.3 million at March 31, 2025, and $157.1 million at June 30, 2024.

    The Bank’s concentration in non-owner occupied commercial real estate loans is estimated at 301.9% of Tier 1 capital and ACL at June 30, 2025, as compared to 317.5% as of June 30, 2024, with these loans representing 40.1% of total loans at June 30, 2025. Multi-family residential real estate, hospitality (hotels/restaurants), care facilities, strip centers, retail stand-alone, and storage units are the most common collateral types within the non-owner occupied commercial real estate loan portfolio. The multi-family residential real estate loan portfolio commonly includes loans collateralized by properties currently in the low-income housing tax credit (LIHTC) program or that have exited the program. The hospitality and retail stand-alone segments include primarily franchised businesses; care facilities consisting mainly of skilled nursing and assisted living centers; and strip centers, which can be defined as non-mall shopping centers with a variety of tenants. Non-owner occupied office property types included 33 loans totaling $24.3 million, or 0.59% of total loans at June 30, 2025, none of which were adversely classified as of June 30, 2025, and are generally comprised of smaller spaces with diverse tenants. The Company continues to monitor its commercial real estate concentration and the individual segments closely.

    Nonperforming loans (NPLs) were $23.0 million, or 0.56% of gross loans, at June 30, 2025, as compared to $6.7 million, or 0.17% of gross loans, at June 30, 2024. Nonperforming assets (NPAs) were $23.7 million, or 0.47% of total assets, at June 30, 2025, as compared to $10.6 million, or 0.23% of total assets, at June 30, 2024. The rise in NPAs reflects an increase in NPLs, which was partially offset by a decrease in other real estate owned. Compared to March 31, 2025, the linked quarter, NPAs declined $104,000. The year-over-year increase in NPLs was primarily driven by several commercial relationships added during the third and fourth quarters of fiscal 2025, along with the addition of other smaller loans throughout the year, partially offset by net charge-offs. In the fourth quarter, a $5.7 million construction loan related to the development of a senior living facility was placed on nonaccrual status. As previously disclosed in the third quarter, three commercial loans with common guarantors, which are primarily secured by two non-owner-occupied, special-purpose commercial properties located in different states, were also added to NPLs. These properties, which were previously leased to a single tenant that has since become insolvent, are now vacant. Some guarantors are shared across these three loans. The total balance of these three loans at fiscal year end 2025 was $6.2 million, after recognition of $3.8 million charge-offs in the current quarter that were previously reserved for in the linked quarter.

    The ACL at June 30, 2025, totaled $51.6 million, representing 1.26% of gross loans and 224% of nonperforming loans, as compared to an ACL of $52.5 million, representing 1.36% of gross loans and 786% of nonperforming loans, at June 30, 2024. The Company has estimated its expected credit losses as of June 30, 2025, under ASC 326-20, and management believes the ACL as of that date was adequate based on that estimate. There remains, however, significant uncertainty as borrowers adjust to relatively high market interest rates, although the Federal Reserve has reduced short-term rates somewhat during this fiscal year. The decrease in the ACL was primarily attributable to net charge-offs, which reduced the required reserves for individually evaluated loans, as well as a decline in certain qualitative adjustments relevant to assessing expected credit losses. This decrease was partially offset by higher required reserves for pooled loans, reflecting management’s updated view of a deteriorating economic outlook and an increase in modeled loss drivers compared to the prior assessment as of June 30, 2024. Additional provisions were also recorded to support loan growth and overdraft exposures during fiscal year 2025. As a percentage of average loans outstanding, the Company recorded net charge offs of 0.53% (annualized) during the current quarter, as compared to 0.06% for the same quarter of the prior fiscal year. In the three-month period ended June 30, 2025, net charge offs were $5.3 million, with the increase from prior periods primarily attributable to the $3.8 million special-purpose CRE charge off noted above, and a $742,000 commercial and industrial charge off related to a commercial contractor. For fiscal year 2025, net charge offs as a percentage of average loans were 0.17%, as compared to 0.05% for fiscal year 2024.

    Total liabilities were $4.5 billion at June 30, 2025, an increase of $359.3 million, or 8.7%, as compared to June 30, 2024. Growth primarily reflected increases in total deposits, other liabilities, accrued interest and income taxes payable, and securities sold under agreement to repurchase.

    Deposits were $4.3 billion at June 30, 2025, an increase of $338.3 million, or 8.6%, as compared to June 30, 2024. The deposit portfolio saw increases in certificates of deposit and savings accounts, as customers remained willing to move balances into special rate time deposits and high yield savings accounts in the higher rate environment. Public unit balances totaled $550.8 million at June 30, 2025, a decrease of $43.8 million compared to June 30, 2024, mostly due to the Company losing the bid to retain a larger local public unit depositor early in the fiscal year. Brokered deposits totaled $233.6 million at June 30, 2025, an increase of $61.9 million as compared to June 30, 2024. The average loan-to-deposit ratio for the fourth quarter of fiscal 2025 was 94.5%, as compared to 96.3% for the same period of the prior fiscal year. The period end loan-to-deposit ratios were 95.8% and 97.6% as of June 30, 2024, and 2025, respectively. The table below illustrates changes in deposit balances by type over recent periods:    

                                   
    Summary Deposit Data as of:      June 30,      Mar. 31,      Dec. 31,      Sep. 30,      June 30,
    (dollars in thousands)   2025   2025   2024   2024   2024
                                   
    Non-interest bearing deposits   $ 508,110   $ 513,418   $ 514,199   $ 503,209   $ 514,107
    NOW accounts     1,132,298     1,167,296     1,211,402     1,128,917     1,239,663
    MMDAs – non-brokered     329,837     345,810     347,271     320,252     334,774
    Brokered MMDAs     1,414     2,013     3,018     12,058     2,025
    Savings accounts     661,115     626,175     573,291     556,030     517,084
    Total nonmaturity deposits     2,632,774     2,654,712     2,649,181     2,520,466     2,607,653
                                   
    Certificates of deposit – non-brokered     1,414,945     1,373,109     1,310,421     1,258,583     1,163,650
    Brokered certificates of deposit     233,649     233,561     251,025     261,093     171,756
    Total certificates of deposit     1,648,594     1,606,670     1,561,446     1,519,676     1,335,406
                                   
    Total deposits   $ 4,281,368   $ 4,261,382   $ 4,210,627   $ 4,040,142   $ 3,943,059
                                   
    Public unit nonmaturity accounts   $ 435,632   $ 472,010   $ 482,406   $ 447,638   $ 541,445
    Public unit certificates of deposit     115,204     103,741     83,506     62,882     53,144
    Total public unit deposits   $ 550,836   $ 575,751   $ 565,912   $ 510,520   $ 594,589

    FHLB advances were $104.1 million at June 30, 2025, an increase of $2.0 million, or 2.0%, as compared to June 30, 2024.

    The Company’s stockholders’ equity was $544.7 million at June 30, 2025, an increase of $55.9 million, or 11.4%, as compared to June 30, 2024. The increase was attributable primarily to earnings retained after cash dividends paid, in combination with a $6.1 million reduction in accumulated other comprehensive losses (AOCL) as the market value of the Company’s investments appreciated due to the decrease in market interest rates. The AOCL totaled $11.4 million at June 30, 2025, as compared to $17.5 million at June 30, 2024. The Company does not hold any securities classified as held-to-maturity.    

    Quarterly Income Statement Summary:

    The Company’s net interest income for the three-month period ended June 30, 2025, was $40.3 million, an increase of $5.2 million, or 14.9%, as compared to the same period of the prior fiscal year. The increase was attributable to a 7.9% increase in the average balance of interest-earning assets in the current three-month period compared to the same period a year ago, and an increase of 21 basis points in the net interest margin, from 3.25% to 3.46%. The primary driver of the net interest margin expansion, compared to the year ago period, was the cost of interest-bearing liabilities decreasing 20 basis points, while the yield on interest-earning assets increased seven basis points. The overall increase in spread of 27 basis points was partially offset by a lower level of average interest-earning assets to average interest-bearing liabilities totaling 120.6% at June 30, 2025, down 1.1 percentage points compared to the year ago period, due to stronger deposit growth.

    Loan discount accretion and deposit premium amortization related to the November 2018 acquisition of First Commercial Bank, the May 2020 acquisition of Central Federal Savings & Loan Association, the February 2022 merger of FortuneBank, and the January 2023 acquisition of Citizens Bank & Trust resulted in $612,000 in net interest income for the three-month period ended June 30, 2025, as compared to $1.1 million in net interest income for the same period a year ago. Combined, this component of net interest income contributed five basis points to net interest margin in the three-month period ended June 30, 2025, as compared to a ten basis point contribution for the same period of the prior fiscal year, and as compared to a 13-basis point contribution in the linked quarter, ended March 31, 2025, when net interest margin was 3.39%.

    The Company recorded a PCL of $2.5 million in the three-month period ended June 30, 2025, as compared to a PCL of $900,000 in the same period of the prior fiscal year. The current period PCL was the result of a $2.0 million provision attributable to the ACL for loan balances outstanding and a $475,000 provision attributable to the allowance for off-balance sheet credit exposures. The increase was primarily attributable to providing for net charge-offs and to support loan growth, in addition to an increase in unfunded balances and an increase in the expected funding rate on available credit.

    The Company’s noninterest income for the three-month period ended June 30, 2025, was $7.3 million, a decrease of $487,000, or 6.3%, as compared to the same period of the prior fiscal year. The decrease was attributable to lower other noninterest income and loan servicing fees. The decrease in other noninterest income was associated with the change in accounting for realization of tax credits, as the Company has adopted the proportional amortization method under ASU 2023-02, which results in a direct reduction to the provision for income taxes in fiscal 2025. The tax credit benefit recognized in other noninterest income in the three-month period ended June 2024 was $675,000. Loan servicing fees were negatively impacted by the recognition of a change in the fair value of mortgage servicing rights, which in the fourth quarter of fiscal 2025 resulted in a negative adjustment of $108,000, as compared to a benefit of $131,000 in the same period a year ago, due to changes in market rates and prepayment assumptions. These decreases as compared to the prior year period were partially offset by increases in other loan fees attributable to increased loan originations and higher deposit account charges and related fees primarily attributable to an increase in non-sufficient fund activity and an increase in maintenance and activity fees collected.

    Noninterest expense for the three-month period ended June 30, 2025, was $26.0 million, an increase of $974,000, or 3.9%, as compared to the same period of the prior fiscal year. The increase as compared to the year-ago period was primarily attributable to increases in legal and professional fees, data processing expense, and other noninterest expense. The Company experienced elevated legal and professional fees associated with consulting costs to negotiate a new contract with a large vendor totaling $425,000. Data processing expense increased due to an increase in third party ancillary software expenses and one-time reclassification of data processing expenses to other categories in the year-ago period. The increase in other noninterest expense was primarily due to card fraud losses and deposit product expenses. These increases as compared to the prior year period were partially offset by decreases in intangible amortization expense, as the core deposit intangible recognized in an older merger was fully amortized in the second quarter of fiscal 2025, and by reduced telecommunication expenses.

    The efficiency ratio for the three-month period ended June 30, 2025, was 54.6%, as compared to 58.3% in the same period of the prior fiscal year. The improvement was attributable to net interest income growing faster than operating expenses.

    The income tax provision was $3.4 million for the three-month period ended June 30, 2025, and for the same period of the prior fiscal year. The effective tax rate for the fourth quarter of fiscal year 2025 was 17.5%, as compared to 20.2% in the same period of the prior fiscal year. The decrease in the effective tax rate was primarily attributable to a $701,000 income tax benefit from the recognition of tax credits utilizing the proportional amortization method under ASC 2023-02. In the same period of the prior fiscal year, similar benefits were recognized through noninterest income.

    Forward-Looking Information:

    Except for the historical information contained herein, the matters discussed in this press release may be deemed to be forward-looking statements that are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from the forward-looking statements, including: potential adverse impacts to the economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, expected cost savings, synergies and other benefits from our merger and acquisition activities might not be realized to the extent expected, within the anticipated time frames, or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention and labor shortages, might be greater than expected and goodwill impairment charges might be incurred; the strength of the United States economy in general and the strength of local economies in which we conduct operations; fluctuations in interest rates and the possibility of a recession; monetary and fiscal policies of the FRB and the U.S. Government and other governmental initiatives affecting the financial services industry; potential imposition of new or increased tariffs or changes to existing trade policies that could affect economic activity or specific industry sectors; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors’ products and services; fluctuations in real estate values in both residential and commercial real estate markets, as well as agricultural business conditions; demand for loans and deposits; legislative or regulatory changes that adversely affect our business; changes in accounting principles, policies, or guidelines; results of regulatory examinations, including the possibility that a regulator may, among other things, require an increase in our reserve for credit losses or write-down of assets; the impact of technological changes; and our success at managing the risks involved in the foregoing. Any forward-looking statements are based upon management’s beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed might not occur, and you should not put undue reliance on any forward-looking statements.   

    Southern Missouri Bancorp, Inc.
    UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION

                                     
    Summary Balance Sheet Data as of:      June 30,      Mar. 31,      Dec. 31,      Sep. 30,      June 30,  
    (dollars in thousands, except per share data)   2025   2025   2024   2024   2024  
                                     
    Cash equivalents and time deposits   $ 193,105   $ 227,136   $ 146,078   $ 75,591   $ 61,395  
    Available for sale (AFS) securities     460,844     462,930     468,060     420,209     427,903  
    FHLB/FRB membership stock     18,500     18,269     18,099     18,064     17,802  
    Loans held for sale     431     —     —     —     —  
    Loans receivable, gross     4,099,698     4,023,509     4,026,979     3,966,518     3,849,803  
    Allowance for credit losses     51,629     54,940     54,740     54,437     52,516  
    Loans receivable, net     4,048,069     3,968,569     3,972,239     3,912,081     3,797,287  
    Bank-owned life insurance     75,691     75,156     74,643     74,119     73,601  
    Intangible assets     73,721     74,677     75,399     76,340     77,232  
    Premises and equipment     95,982     95,987     96,418     96,087     95,952  
    Other assets     53,264     53,772     56,738     56,709     53,144  
    Total assets   $ 5,019,607   $ 4,976,496   $ 4,907,674   $ 4,729,200   $ 4,604,316  
                                     
    Interest-bearing deposits   $ 3,773,258   $ 3,747,964   $ 3,696,428   $ 3,536,933   $ 3,428,952  
    Noninterest-bearing deposits     508,110     513,418     514,199     503,209     514,107  
    Securities sold under agreements to repurchase     15,000     15,000     15,000     15,000     9,398  
    FHLB advances     104,072     104,072     107,070     107,069     102,050  
    Other liabilities     51,267     44,057     39,424     38,191     37,905  
    Subordinated debt     23,208     23,195     23,182     23,169     23,156  
    Total liabilities     4,474,915     4,447,706     4,395,303     4,223,571     4,115,568  
                                     
    Total stockholders’ equity     544,692     528,790     512,371     505,629     488,748  
                                     
    Total liabilities and stockholders’ equity   $ 5,019,607   $ 4,976,496   $ 4,907,674   $ 4,729,200   $ 4,604,316  
                                     
    Equity to assets ratio     10.85 %     10.63 %     10.44 %     10.69 %     10.61 %
                                     
    Common shares outstanding     11,299,467     11,299,962     11,277,167     11,277,167     11,277,737  
    Less: Restricted common shares not vested     50,163     50,658     46,653     56,553     57,956  
    Common shares for book value determination     11,249,304     11,249,304     11,230,514     11,220,614     11,219,781  
                                     
    Book value per common share   $ 48.42   $ 47.01   $ 45.62   $ 45.06   $ 43.56  
    Less: Intangible assets per common share     6.55     6.64     6.71     6.80     6.88  
    Tangible book value per common share (1)     41.87     40.37     38.91     38.26     36.68  
    Closing market price     54.78     52.02     57.37     56.49     45.01  

    (1)   Non-GAAP financial measure.

                                     
    Nonperforming asset data as of:      June 30,      Mar. 31,      Dec. 31,      Sep. 30,      June 30,  
    (dollars in thousands)   2025   2025   2024   2024   2024  
                                     
    Nonaccrual loans   $ 23,040   $ 21,970   $ 8,309   $ 8,206   $ 6,680  
    Accruing loans 90 days or more past due     —     —     —     —     —  
    Total nonperforming loans     23,040     21,970     8,309     8,206     6,680  
    Other real estate owned (OREO)     625     1,775     2,423     3,842     3,865  
    Personal property repossessed     32     56     37     21     23  
    Total nonperforming assets   $ 23,697   $ 23,801   $ 10,769   $ 12,069   $ 10,568  
                                     
    Total nonperforming assets to total assets     0.47 %     0.48 %     0.22 %     0.26 %     0.23 %  
    Total nonperforming loans to gross loans     0.56 %     0.55 %     0.21 %     0.21 %     0.17 %  
    Allowance for credit losses to nonperforming loans     224.08 %     250.07 %     658.80 %     663.38 %     786.17 %  
    Allowance for credit losses to gross loans     1.26 %     1.37 %     1.36 %     1.37 %     1.36 %  
                                     
    Performing modifications to borrowers experiencing financial difficulty   $ 26,642   $ 23,304   $ 24,083   $ 24,340   $ 24,602  
                                   
        For the three-month period ended
    Quarterly Summary Income Statement Data:   June 30,      Mar. 31,      Dec. 31,      Sep. 30,      June 30,
    (dollars in thousands, except per share data)      2025   2025   2024   2024   2024
                                   
    Interest income:                                   
    Cash equivalents   $ 1,698   $ 1,585   $ 784   $ 78   $ 541
    AFS securities and membership stock     5,586     5,684     5,558     5,547     5,677
    Loans receivable     63,354     62,656     63,082     61,753     58,449
    Total interest income     70,638     69,925     69,424     67,378     64,667
    Interest expense:                              
    Deposits     28,644     28,795     29,538     28,796     27,999
    Securities sold under agreements to repurchase     191     189     226     160     125
    FHLB advances     1,080     1,076     1,099     1,326     1,015
    Subordinated debt     390     386     418     435     433
    Total interest expense     30,305     30,446     31,281     30,717     29,572
    Net interest income     40,333     39,479     38,143     36,661     35,095
    Provision for credit losses     2,500     932     932     2,159     900
    Noninterest income:                              
    Deposit account charges and related fees     2,156     2,048     2,237     2,184     1,978
    Bank card interchange income     1,839     1,341     1,301     1,499     1,770
    Loan late charges     —     —     —     —     170
    Loan servicing fees     167     224     232     286     494
    Other loan fees     917     843     944     1,063     617
    Net realized gains on sale of loans     143     114     133     361     97
    Net realized gains (losses) on sale of AFS securities     —     48     —     —     —
    Earnings on bank owned life insurance     533     512     522     517     498
    Insurance brokerage commissions     368     340     300     287     331
    Wealth management fees     825     902     843     730     838
    Other noninterest income     332     294     353     247     974
    Total noninterest income     7,280     6,666     6,865     7,174     7,767
    Noninterest expense:                              
    Compensation and benefits     13,852     13,771     13,737     14,397     13,894
    Occupancy and equipment, net     3,745     3,869     3,585     3,689     3,790
    Data processing expense     2,573     2,359     2,224     2,171     1,929
    Telecommunications expense     312     330     354     428     468
    Deposit insurance premiums     601     674     588     472     638
    Legal and professional fees     1,165     603     619     1,208     516
    Advertising     551     530     442     546     640
    Postage and office supplies     336     350     283     306     308
    Intangible amortization     857     889     897     897     1,018
    Foreclosed property expenses, net     (18)     37     73     12     52
    Other noninterest expense     2,002     1,979     2,074     1,715     1,749
    Total noninterest expense     25,976     25,391     24,876     25,841     25,002
    Net income before income taxes     19,137     19,822     19,200     15,835     16,960
    Income taxes     3,351     4,139     4,547     3,377     3,430
    Net income     15,786     15,683     14,653     12,458     13,530
    Less: Distributed and undistributed earnings allocated                              
    to participating securities     71     71     61     62     69
    Net income available to common shareholders   $ 15,715   $ 15,612   $ 14,592   $ 12,396   $ 13,461
                                   
    Basic earnings per common share   $ 1.40   $ 1.39   $ 1.30   $ 1.10   $ 1.19
    Diluted earnings per common share     1.39     1.39     1.30     1.10     1.19
    Dividends per common share     0.23     0.23     0.23     0.23     0.21
    Average common shares outstanding:                              
    Basic     11,250,000     11,238,000     11,231,000     11,221,000     11,276,000
    Diluted     11,270,000     11,262,000     11,260,000     11,240,000     11,283,000
                                     
        For the three-month period ended  
    Quarterly Average Balance Sheet Data:   June 30,      Mar. 31,      Dec. 31,      Sep. 30,      June 30,  
    (dollars in thousands)      2025   2025   2024   2024   2024  
                                     
    Interest-bearing cash equivalents   $ 151,380   $ 143,206   $ 64,976   $ 5,547   $ 39,432  
    AFS securities and membership stock     498,491     508,642     479,633     460,187     476,198  
    Loans receivable, gross     4,018,769     4,003,552     3,989,643     3,889,740     3,809,209  
    Total interest-earning assets     4,668,640     4,655,400     4,534,252     4,355,474     4,324,839  
    Other assets     299,217     290,739     291,217     283,056     285,956  
    Total assets   $ 4,967,857   $ 4,946,139   $ 4,825,469   $ 4,638,530   $ 4,610,795  
                                     
    Interest-bearing deposits   $ 3,727,836   $ 3,737,849   $ 3,615,767   $ 3,416,752   $ 3,417,360  
    Securities sold under agreements to repurchase     15,000     15,000     15,000     12,321     9,398  
    FHLB advances     104,053     106,187     107,054     123,723     102,757  
    Subordinated debt     23,201     23,189     23,175     23,162     23,149  
    Total interest-bearing liabilities     3,870,090     3,882,225     3,760,996     3,575,958     3,552,664  
    Noninterest-bearing deposits     524,860     513,157     524,878     531,946     539,637  
    Other noninterest-bearing liabilities     37,014     31,282     31,442     33,737     35,198  
    Total liabilities     4,431,964     4,426,664     4,317,316     4,141,641     4,127,499  
                                     
    Total stockholders’ equity     535,893     519,475     508,153     496,889     483,296  
                                     
    Total liabilities and stockholders’ equity   $ 4,967,857   $ 4,946,139   $ 4,825,469   $ 4,638,530   $ 4,610,795  
                                     
    Return on average assets     1.27 %     1.27 %     1.21 %     1.07 %     1.17 %
    Return on average common stockholders’ equity     11.8 %     12.1 %     11.5 %     10.0 %     11.2 %
                                     
    Net interest margin     3.46 %     3.39 %     3.36 %     3.37 %     3.25 %
    Net interest spread     2.92 %     2.87 %     2.79 %     2.75 %     2.65 %
                                     
    Efficiency ratio     54.6 %     55.1 %     55.3 %     59.0 %     58.3 %

    The MIL Network –

  • MIL-OSI: Live Oak Bancshares, Inc. Reports Second Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    WILMINGTON, N.C., July 23, 2025 (GLOBE NEWSWIRE) — Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported second quarter of 2025 net income attributable to the Company of $23.4 million, or $0.51 per diluted share.

    Live Oak’s performance in the quarter, compared to the first quarter of 2025, includes these notable items:

    • Record second quarter production of $1.53 billion accompanied by strong deposit growth of $198.8 million, with total assets growing by 1.7% to $13.83 billion
    • Net interest income increased 8.6% and net interest margin increased eight basis points from 3.20% to 3.28%
    • 14.0% increase in revenue and 6.3% increase in noninterest expenses generated 29.4% increase in pre-provision net revenue1
    • Provision expense for credit losses of $23.3 million, a decrease of $5.7 million, driven by moderating credit trends, loan growth, and the current macroeconomic environment

    “Live Oak Bank delivered an outstanding quarter in Q2, driven by excellent growth, healthy revenue, and lower provision expense,” said Live Oak Chairman and CEO James S. (Chip) Mahan III. “We remain focused on supporting our nation’s entrepreneurs as they continue to navigate a backdrop of uncertainty while also providing the service, technology and financial guidance they need to succeed.”

    Conference Call

    Live Oak will host a conference call to discuss the Company’s financial results and business outlook tomorrow, July 24, 2025, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 25229. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event. The conference call details are as follows:

    Live Telephone Dial-In

    U.S.: 800.549.8228
    International: +1 646.564.2877
    Pass Code: None Required

    Live Webcast Log-In

    Webcast Link: investor.liveoakbank.com
    Registration: Name and Email Required
    Multi-Factor Code: Provided After Registration

    (1) See accompanying GAAP to Non-GAAP Reconciliation.
       

    Second Quarter 2025 Key Measures

    (Dollars in thousands, except per share data)       Increase (Decrease)    
      2Q 2025   1Q 2025   Dollars   Percent   2Q 2024
    Total revenue(1) $ 143,747     $ 126,113     $ 17,634   14.0 %   $ 125,479  
    Total noninterest expense   89,293       84,017       5,276   6.3       77,656  
    Income before taxes   31,202       13,132       18,070   137.6       36,058  
    Effective tax rate   25.0 %     26.4 %   n/a   n/a     25.2 %
    Net income attributable to Live Oak Bancshares, Inc. $ 23,428     $ 9,717     $ 13,711   141.1 %   $ 26,963  
    Diluted earnings per share   0.51       0.21       0.30   142.9       0.59  
    Loan and lease production:                  
    Loans and leases originated $ 1,526,592     $ 1,396,223     $ 130,369   9.3 %   $ 1,171,141  
    % Fully funded   39.7 %     46.0 %   n/a   n/a     38.2 %
    Total loans and leases: $ 11,364,846     $ 11,061,866     $ 302,980   2.7 %   $ 9,535,766  
    Total assets:   13,831,208       13,595,704       235,504   1.7       11,868,570  
    Total deposits:   12,594,790       12,395,945       198,845   1.6       10,707,031  
    (1) Total revenue consists of net interest income and total noninterest income.
       

    Important Note Regarding Forward-Looking Statements

    Statements in this press release that are based on other than historical data or that express the Company’s plans or expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include changes in Small Business Administration (“SBA”) rules, regulations or loan products, including the Section 7(a) program, changes in SBA standard operating procedures or changes in Live Oak Banking Company’s status as an SBA Preferred Lender; changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture; the impacts of any pandemic or public health situation on trade (including supply chains and export levels), travel, employee productivity and other economic activities that may have a destabilizing and negative effect on financial markets, economic activity and customer behavior; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; a reduction in or the termination of the Company’s ability to use the technology-based platform that is critical to the success of its business model, including a failure in or a breach of operational or security systems or those of its third-party service providers; risks relating to the material weakness we identified in our internal control over financial reporting; technological risks and developments, including cyber threats, attacks, or events; competition from other lenders; the Company’s ability to attract and retain key personnel; market and economic conditions and the associated impact on the Company; operational, liquidity and credit risks associated with the Company’s business; changes in political and economic conditions, including any prolonged U.S. government shutdown; the impact of heightened regulatory scrutiny of financial products and services and the Company’s ability to comply with regulatory requirements and expectations; changes in tariffs and trade barriers, including potential changes in U.S. and international trade policies and the resulting impact on the Company and its customers; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; adverse results, including related fees and expenses, from pending or future lawsuits, government investigations or private actions; and the other factors discussed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov). Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

    About Live Oak Bancshares, Inc.

    Live Oak Bancshares, Inc. (NYSE: LOB) is a financial holding company and the parent company of Live Oak Bank. Live Oak Bancshares and its subsidiaries partner with businesses that share a groundbreaking focus on service and technology to redefine banking. To learn more, visit www.liveoak.bank. 

    Contacts:

    Walter J. Phifer | CFO | Investor Relations | 910.202.6926
    Claire Parker | Corporate Communications | Media Relations | 910.597.1592

    Live Oak Bancshares, Inc.
    Quarterly Statements of Income (unaudited)
    (Dollars in thousands, except per share data)

      Three Months Ended   2Q 2025 Change vs.
      2Q 2025   1Q 2025   4Q 2024   3Q 2024   2Q 2024   1Q 2025   2Q 2024
    Interest income                     %   %
    Loans and fees on loans $ 204,513     $ 195,616     $ 194,821     $ 192,170     $ 181,840     4.5     12.5  
    Investment securities, taxable   11,648       11,089       10,490       9,750       9,219     5.0     26.3  
    Other interest earning assets   8,123       6,400       7,257       7,016       7,389     26.9     9.9  
    Total interest income   224,284       213,105       212,568       208,936       198,448     5.2     13.0  
    Interest expense                          
    Deposits   113,380       110,888       113,357       110,174       105,358     2.2     7.6  
    Borrowings   1,683       1,685       1,737       1,762       1,770     (0.1 )   (4.9 )
    Total interest expense   115,063       112,573       115,094       111,936       107,128     2.2     7.4  
    Net interest income   109,221       100,532       97,474       97,000       91,320     8.6     19.6  
    Provision for credit losses   23,252       28,964       33,581       34,502       11,765     (19.7 )   97.6  
    Net interest income after provision for credit losses   85,969       71,568       63,893       62,498       79,555     20.1     8.1  
    Noninterest income                          
    Loan servicing revenue   8,565       8,298       8,524       8,040       7,347     3.2     16.6  
    Loan servicing asset revaluation   (3,057 )     (4,728 )     (2,326 )     (4,207 )     (2,878 )   35.3     (6.2 )
    Net gains on sales of loans   21,641       18,648       18,356       16,646       14,395     16.0     50.3  
    Net gain (loss) on loans accounted for under the fair value option   1,082       (1,034 )     195       2,255       172     204.6     529.1  
    Equity method investments (loss) income   (2,716 )     (2,239 )     (2,739 )     (1,393 )     (1,767 )   (21.3 )   (53.7 )
    Equity security investments gains, net   1,004       20       12       909       161     4,920.0     523.6  
    Lease income   3,103       2,573       2,456       2,424       2,423     20.6     28.1  
    Management fee income   —       —       —       1,116       3,271     —     (100.0 )
    Other noninterest income   4,904       4,043       6,115       7,142       11,035     21.3     (55.6 )
    Total noninterest income   34,526       25,581       30,593       32,932       34,159     35.0     1.1  
    Noninterest expense                          
    Salaries and employee benefits   49,137       48,008       45,214       44,524       46,255     2.4     6.2  
    Travel expense   2,576       2,795       2,628       2,344       2,328     (7.8 )   10.7  
    Professional services expense   2,874       3,024       2,797       3,287       3,061     (5.0 )   (6.1 )
    Advertising and marketing expense   4,420       3,665       1,979       2,473       3,004     20.6     47.1  
    Occupancy expense   2,369       2,737       2,558       2,807       2,388     (13.4 )   (0.8 )
    Technology expense   10,066       9,251       9,406       9,081       7,996     8.8     25.9  
    Equipment expense   3,685       3,745       3,769       3,472       3,511     (1.6 )   5.0  
    Other loan origination and maintenance expense   4,190       4,585       4,812       4,872       3,659     (8.6 )   14.5  
    Renewable energy tax credit investment impairment   270       —       1,172       115       170     100.0     58.8  
    FDIC insurance   3,545       3,551       3,053       1,933       2,649     (0.2 )   33.8  
    Other expense   6,161       2,656       3,869       2,681       2,635     132.0     133.8  
    Total noninterest expense   89,293       84,017       81,257       77,589       77,656     6.3     15.0  
    Income before taxes   31,202       13,132       13,229       17,841       36,058     137.6     (13.5 )
    Income tax expense   7,815       3,464       3,386       4,816       9,095     125.6     (14.1 )
    Net income   23,387       9,668       9,843       13,025       26,963     141.9     (13.3 )
    Net loss attributable to non-controlling interest   41       49       57       —       —     (16.3 )   100.0  
    Net income attributable to Live Oak Bancshares, Inc. $ 23,428     $ 9,717     $ 9,900     $ 13,025     $ 26,963     141.1     (13.1 )
    Earnings per share                          
    Basic $ 0.51     $ 0.21     $ 0.22     $ 0.28     $ 0.60     142.9     (15.0 )
    Diluted $ 0.51     $ 0.21     $ 0.22     $ 0.28     $ 0.59     142.9     (13.6 )
    Weighted average shares outstanding                          
    Basic   45,634,741       45,377,965       45,224,470       45,073,482       44,974,942          
    Diluted   45,795,608       45,754,499       46,157,979       45,953,947       45,525,082          
                                                   

    Live Oak Bancshares, Inc.
    Quarterly Balance Sheets (unaudited)
    (Dollars in thousands)

      As of the quarter ended   2Q 2025 Change vs.
      2Q 2025   1Q 2025   4Q 2024   3Q 2024   2Q 2024   1Q 2025   2Q 2024
    Assets                     %   %
    Cash and due from banks $ 662,755     $ 744,263     $ 608,800     $ 666,585     $ 615,449     (11.0 )   7.7  
    Certificates of deposit with other banks   250       250       250       250       250     —     —  
    Investment securities available-for-sale   1,325,206       1,312,680       1,248,203       1,233,466       1,151,195     1.0     15.1  
    Loans held for sale   350,791       367,955       346,002       359,977       363,632     (4.7 )   (3.5 )
    Loans and leases held for investment(1)   11,014,055       10,693,911       10,233,374       9,831,891       9,172,134     3.0     20.1  
    Allowance for credit losses on loans and leases   (182,231 )     (190,184 )     (167,516 )     (168,737 )     (137,867 )   4.2     (32.2 )
    Net loans and leases   10,831,824       10,503,727       10,065,858       9,663,154       9,034,267     3.1     19.9  
    Premises and equipment, net   246,493       259,113       264,059       267,032       267,864     (4.9 )   (8.0 )
    Foreclosed assets   6,318       2,108       1,944       8,015       8,015     199.7     (21.2 )
    Servicing assets   60,359       56,911       56,144       52,553       51,528     6.1     17.1  
    Other assets   347,212       348,697       352,120       356,314       376,370     (0.4 )   (7.7 )
    Total assets $ 13,831,208     $ 13,595,704     $ 12,943,380     $ 12,607,346     $ 11,868,570     1.7     16.5  
    Liabilities and shareholders’ equity                          
    Liabilities                          
    Deposits:                          
    Noninterest-bearing $ 393,393     $ 386,108     $ 318,890     $ 258,844     $ 264,013     1.9     49.0  
    Interest-bearing   12,201,397       12,009,837       11,441,604       11,141,703       10,443,018     1.6     16.8  
    Total deposits   12,594,790       12,395,945       11,760,494       11,400,547       10,707,031     1.6     17.6  
    Borrowings   107,659       110,247       112,820       115,371       117,745     (2.3 )   (8.6 )
    Other liabilities   61,494       58,065       66,570       83,672       82,745     5.9     (25.7 )
    Total liabilities   12,763,943       12,564,257       11,939,884       11,599,590       10,907,521     1.6     17.0  
    Shareholders’ equity                          
    Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding   —       —       —       —       —     —     —  
    Class A common stock (voting)   377,953       370,513       365,607       361,925       356,381     2.0     6.1  
    Class B common stock (non-voting)   —       —       —       —       —     —     —  
    Retained earnings   746,450       724,215       715,767       707,026       695,172     3.1     7.4  
    Accumulated other comprehensive loss   (61,514 )     (67,698 )     (82,344 )     (61,195 )     (90,504 )   9.1     32.0  
    Total shareholders’ equity attributed to Live Oak Bancshares, Inc.   1,062,889       1,027,030       999,030       1,007,756       961,049     3.5     10.6  
    Non-controlling interest   4,376       4,417       4,466       —       —     (0.9 )   100.0  
    Total shareholders’ equity   1,067,265       1,031,447       1,003,496       1,007,756       961,049     3.5     11.1  
    Total liabilities and shareholders’ equity $ 13,831,208     $ 13,595,704     $ 12,943,380     $ 12,607,346     $ 11,868,570     1.7     16.5  
    (1) Includes $303.8 million, $316.8 million, $328.7 million, $343.4 million and $363.0 million loans measured at fair value for the quarters ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively.
       

    Live Oak Bancshares, Inc.
    Statements of Income (unaudited)
    (Dollars in thousands, except per share data)

      Six Months Ended
      June 30, 2025   June 30, 2024
    Interest income      
    Loans and fees on loans $ 400,129     $ 357,850  
    Investment securities, taxable   22,737       18,173  
    Other interest earning assets   14,523       14,845  
    Total interest income   437,389       390,868  
    Interest expense      
    Deposits   224,268       207,356  
    Borrowings   3,368       2,081  
    Total interest expense   227,636       209,437  
    Net interest income   209,753       181,431  
    Provision for credit losses   52,216       28,129  
    Net interest income after provision for credit losses   157,537       153,302  
    Noninterest income      
    Loan servicing revenue   16,863       14,971  
    Loan servicing asset revaluation   (7,785 )     (5,622 )
    Net gains on sales of loans   40,289       25,897  
    Net gain (loss) on loans accounted for under the fair value option   48       (47 )
    Equity method investments (loss) income   (4,955 )     (6,789 )
    Equity security investments gain (losses), net   1,024       (368 )
    Lease income   5,676       4,876  
    Management fee income   —       6,542  
    Other noninterest income   8,947       20,796  
    Total noninterest income   60,107       60,256  
    Noninterest expense      
    Salaries and employee benefits   97,145       93,530  
    Travel expense   5,371       4,766  
    Professional services expense   5,898       4,939  
    Advertising and marketing expense   8,085       6,696  
    Occupancy expense   5,106       4,635  
    Technology expense   19,317       15,719  
    Equipment expense   7,430       6,585  
    Other loan origination and maintenance expense   8,775       7,570  
    Renewable energy tax credit investment impairment (recovery)   270       (757 )
    FDIC insurance   7,096       5,849  
    Other expense   8,817       5,861  
    Total noninterest expense   173,310       155,393  
    Income before taxes   44,334       58,165  
    Income tax expense   11,279       3,616  
    Net income   33,055       54,549  
    Net loss attributable to non-controlling interest   90       —  
    Net income attributable to Live Oak Bancshares, Inc. $ 33,145     $ 54,549  
    Earnings per share      
    Basic $ 0.72     $ 1.22  
    Diluted $ 0.72     $ 1.20  
    Weighted average shares outstanding      
    Basic   45,556,842       44,868,625  
    Diluted   45,825,543       45,583,146  
                   

    Live Oak Bancshares, Inc.
    Quarterly Selected Financial Data
    (Dollars in thousands, except per share data)

      As of and for the three months ended
      2Q 2025   1Q 2025   4Q 2024   3Q 2024   2Q 2024
    Income Statement Data                  
    Net income attributable to Live Oak Bancshares, Inc. $ 23,428     $ 9,717     $ 9,900     $ 13,025     $ 26,963  
    Per Common Share                  
    Net income, diluted $ 0.51     $ 0.21     $ 0.22     $ 0.28     $ 0.59  
    Dividends declared   0.03       0.03       0.03       0.03       0.03  
    Book value   23.36       22.62       22.12       22.32       21.35  
    Tangible book value (1)   23.29       22.55       22.05       22.24       21.28  
    Performance Ratios                  
    Return on average assets (annualized)   0.68 %     0.30 %     0.31 %     0.43 %     0.93 %
    Return on average equity (annualized)   8.85       3.78       3.85       5.21       11.39  
    Net interest margin   3.28       3.20       3.15       3.33       3.28  
    Efficiency ratio (1)   62.12       66.62       63.45       59.72       61.89  
    Noninterest income to total revenue   24.02       20.28       23.89       25.35       27.22  
    Selected Loan Metrics                  
    Loans and leases originated $ 1,526,592     $ 1,396,223     $ 1,421,118     $ 1,757,856     $ 1,171,141  
    Outstanding balance of sold loans serviced   5,321,284       4,949,962       4,715,895       4,452,750       4,292,857  
    Asset Quality Ratios                  
    Allowance for credit losses to loans and leases held for investment (3)   1.70 %     1.83 %     1.69 %     1.78 %     1.57 %
    Net charge-offs (3) $ 31,445     $ 6,774     $ 33,566     $ 1,710     $ 8,253  
    Net charge-offs to average loans and leases held for investment (2) (3)   1.19 %     0.27 %     1.39 %     0.08 %     0.38 %
                       
    Nonperforming loans and leases at historical cost (3)                  
    Unguaranteed $ 59,555     $ 99,907     $ 81,412     $ 49,398     $ 37,340  
    Guaranteed   336,777       322,993       222,885       166,177       122,752  
    Total   396,332       422,900       304,297       215,575       160,092  
    Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment (3)   0.56 %     0.96 %     0.82 %     0.52 %     0.42 %
                       
    Nonperforming loans at fair value (4)                  
    Unguaranteed $ 8,873     $ 9,938     $ 9,115     $ 8,672     $ 9,590  
    Guaranteed   60,453       58,100       54,873       49,822       51,570  
    Total   69,326       68,038       63,988       58,494       61,160  
    Unguaranteed nonperforming fair value loans to fair value loans held for investment (4)   2.92 %     3.14 %     2.77 %     2.53 %     2.64 %
                       
    Capital Ratios                  
    Common equity tier 1 capital (to risk-weighted assets)   10.67 %     10.67 %     11.04 %     11.19 %     11.85 %
    Tier 1 leverage capital (to average assets)   7.90       8.03       8.21       8.60       8.71  
                                           

    Notes to Quarterly Selected Financial Data
    (1) See accompanying GAAP to Non-GAAP Reconciliation.
    (2) Quarterly net charge-offs as a percentage of quarterly average loans and leases held for investment, annualized.
    (3) Loans and leases at historical cost only (excludes loans measured at fair value).
    (4) Loans accounted for under the fair value option only (excludes loans and leases carried at historical cost).

    Live Oak Bancshares, Inc.
    Quarterly Average Balances and Net Interest Margin
    (Dollars in thousands)

      Three Months Ended
    June 30, 2025    		   Three Months Ended
    March 31, 2025
      Average Balance   Interest   Average Yield/Rate   Average Balance   Interest   Average Yield/Rate
    Interest-earning assets:                      
    Interest-earning balances in other banks $ 727,715     $ 8,123   4.48 %   $ 581,267     $ 6,400   4.47 %
    Investment securities   1,408,942       11,648   3.32       1,379,797       11,089   3.26  
    Loans held for sale   381,531       8,008   8.42       407,953       8,612   8.56  
    Loans and leases held for investment(1)   10,843,303       196,505   7.27       10,388,872       187,004   7.30  
    Total interest-earning assets   13,361,491       224,284   6.73       12,757,889       213,105   6.77  
    Less: Allowance for credit losses on loans and leases   (186,022 )             (165,320 )        
    Noninterest-earning assets   539,485               534,133          
    Total assets $ 13,714,954             $ 13,126,702          
    Interest-bearing liabilities:                      
    Interest-bearing checking $ 350,978     $ 3,969   4.54 %   $ 350,491     $ 3,929   4.55 %
    Savings   6,241,053       56,529   3.63       5,540,147       51,604   3.78  
    Money market accounts   128,757       93   0.29       127,908       120   0.38  
    Certificates of deposit   5,392,494       52,789   3.93       5,563,004       55,235   4.03  
    Total deposits   12,113,282       113,380   3.75       11,581,550       110,888   3.88  
    Borrowings   109,463       1,683   6.17       111,919       1,685   6.11  
    Total interest-bearing liabilities   12,222,745       115,063   3.78       11,693,469       112,573   3.90  
    Noninterest-bearing deposits   375,503               342,482          
    Noninterest-bearing liabilities   53,717               58,739          
    Shareholders’ equity   1,058,572               1,027,547          
    Non-controlling interest   4,417               4,465          
    Total liabilities and shareholders’ equity $ 13,714,954             $ 13,126,702          
    Net interest income and interest rate spread     $ 109,221   2.95 %       $ 100,532   2.87 %
    Net interest margin         3.28             3.20  
    Ratio of average interest-earning assets to average interest-bearing liabilities         109.32 %           109.10 %
    (1) Average loan and lease balances include non-accruing loans and leases.
       

    Live Oak Bancshares, Inc.
    GAAP to Non-GAAP Reconciliation
    (Dollars in thousands)

      As of and for the three months ended
      2Q 2025   1Q 2025   4Q 2024   3Q 2024   2Q 2024
    Total shareholders’ equity $ 1,067,265     $ 1,031,447     $ 1,003,496     $ 1,007,756     $ 961,049  
    Less:                  
    Goodwill   1,797       1,797       1,797       1,797       1,797  
    Other intangible assets   1,491       1,529       1,568       1,606       1,644  
    Tangible shareholders’ equity (a) $ 1,063,977     $ 1,028,121     $ 1,000,131     $ 1,004,353     $ 957,608  
    Shares outstanding (c)   45,686,081       45,589,633       45,359,425       45,151,691       45,003,856  
    Total assets $ 13,831,208     $ 13,595,704     $ 12,943,380     $ 12,607,346     $ 11,868,570  
    Less:                  
    Goodwill   1,797       1,797       1,797       1,797       1,797  
    Other intangible assets   1,491       1,529       1,568       1,606       1,644  
    Tangible assets (b) $ 13,827,920     $ 13,592,378     $ 12,940,015     $ 12,603,943     $ 11,865,129  
    Tangible shareholders’ equity to tangible assets (a/b)   7.69 %     7.56 %     7.73 %     7.97 %     8.07 %
    Tangible book value per share (a/c) $ 23.29     $ 22.55     $ 22.05     $ 22.24     $ 21.28  
    Efficiency ratio:                  
    Noninterest expense (d) $ 89,293     $ 84,017     $ 81,257     $ 77,589     $ 77,656  
    Net interest income   109,221       100,532       97,474       97,000       91,320  
    Noninterest income   34,526       25,581       30,593       32,932       34,159  
    Total revenue (e) $ 143,747     $ 126,113     $ 128,067     $ 129,932     $ 125,479  
    Efficiency ratio (d/e)   62.12 %     66.62 %     63.45 %     59.72 %     61.89 %
    Pre-provision net revenue (e-d) $ 54,454     $ 42,096     $ 46,810     $ 52,343     $ 47,823  
                                           

    This press release presents non-GAAP financial measures. The adjustments to reconcile from the non-GAAP financial measures to the applicable GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results. The Company believes that excluding the amounts associated with these adjustments to present the non-GAAP financial measures provides a meaningful base for period-to-period comparisons, which will assist regulators, investors, and analysts in analyzing the operating results or financial position of the Company. The non-GAAP financial measures are used by management to assess the performance of the Company’s business for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting the non-GAAP financial measures will permit investors and analysts to assess the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although non-GAAP financial measures are frequently used by shareholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.

    The MIL Network –

  • MIL-OSI USA: WHAT THEY ARE SAYING: U.S.-Indonesia Trade Deal Is Another America First Win

    US Senate News:

    Source: US Whitehouse
    President Donald J. Trump’s landmark reciprocal trade agreement with Indonesia is another critical step forward in the Trump Administration’s relentless pursuit of trade policy that finally puts America First. The deal eliminates ~99% of tariff barriers for a full range of U.S. industrial, food, and agricultural exports, unlocks new market access, and breaks down non-tariff barriers — and represents the latest victory for American workers, farmers, and manufacturers.
    The trade deal was immediately hailed across American industry:
    American Iron and Steel Institute President and CEO Kevin Dempsey: “AISI is encouraged by today’s announcement of a framework for negotiating an agreement with Indonesia to remove Indonesia’s existing export restrictions on critical minerals, such as nickel, which is critical to stainless steel production. Indonesia’s existing export ban and other restrictions on nickel, together with its close ties to Chinese steel producers that have invested in that country as a result of China’s Belt and Road Initiative, have resulted in significant distortions in the global market for nickel to the detriment of steel producers in the United States. We look forward to working with USTR to address the Indonesian nickel export restrictions and other trade-distorting policies as these negotiations move forward.”
    Association for Competitive Technology President Morgan Reed: “This is another win for U.S. small tech developers. For years the App Association and our members have raised concerns with the U.S. Trade Representative regarding Indonesia’s inclusion of software and other digital goods in their tariff system, among several other digital trade barriers. We thank USTR and the Administration for their tireless work on behalf of small tech companies and look forward to our continued work strengthening American competitiveness globally. Further, we commend the Indonesian government for joining the United States in committing to support a World Trade Organization agreement that ensures countries will not apply taxes or customs duties to digital service transmissions.”
    Business Software Alliance SVP Aaron Cooper: “The US-Indonesia trade agreement is a breakthrough in digital trade policy. The agreement’s provisions to eliminate tariffs on intangible digital products, guaranteeing cross-border data transfers, and supporting the permanent extension of the moratorium on digital customs duties expands access to digital services and supports the adoption of technology. This agreement sends a strong signal to the global economy and many industries that rely on open and secure digital trade, and reflects key reforms that have been core BSA priorities for nearly a decade.”
    American Soybean Association President Caleb Ragland: “We appreciate President Trump and his administration’s efforts in maintaining market access for U.S. soybeans into Indonesia, and the commitment from USTR to address non-tariff barriers in that market. We look forward to future deals like this that reduce tariffs and ensure continued and increased market access for U.S. agriculture.”
    Computer and Communications Industry Association VP Jonathan McHale: “The announced Framework agreement for addressing Indonesia’s many trade barriers, including tariff regimes targeting digital products, restrictions on cross-border data flows, and local content requirements for communications devices, is an important and encouraging step in reforming what has long been one of the most challenging markets for U.S. suppliers. We look forward to a binding agreement addressing not only these restrictions, but a path to resolving all outstanding barriers that remain in this important market.”
    Consortium for Common Food Names Executive Director Jaime Castaneda: “The prospect of having Indonesia commit to a more transparent and balanced approach to GIs would be a meaningful advance in the global fight to preserve the use of common food names like parmesan and feta. We commend the U.S. negotiators for prioritizing this issue, particularly at a time when European Union is attempting to expand their GI abuse in growing dairy markets and shut out the United States. We will work diligently with the U.S. government to hold Indonesia accountable to their commitments on common names.”
    International Dairy Foods Association SVP Becky Rasdall Vargas: “We could not be more enthusiastic and energized about today’s announcement for improved access for U.S. dairy exports to Indonesia. Indonesia is an important trading partner in a region that is critical to U.S. dairy exports, and growing. Today’s announcement represents the largest improvement of access U.S. dairy exporters have seen in the region in over a decade and will be a timely step towards keeping U.S. dairy exporters globally competitive. We express our sincere appreciation to the Administration and the negotiators for achieving this positive outcome for U.S. dairy.”
    National Grain and Feed Association President and CEO Mike Seyfert: “America’s grain and feed industry appreciates President Trump and his negotiating team for advancing a bold and strategic trade framework with Indonesia that delivers meaningful wins for U.S agriculture. This agreement opens the door to billions in new exports – including soybeans, wheat, and other key commodities – while eliminating tariffs and cutting red tape that have long held back U.S. producers. We look forward to swift finalization and implementation of this deal and stand ready to work with the Trump Administration open new markets and tear down unfair trade barriers.”
    National Milk Producers Federation President and CEO Gregg Doud: “This looks like it will be a significant win for U.S. dairy. We commend the Trump Administration for securing an agreement that should deliver real benefits for our dairy farmers. We are pleased to hear this framework removes roadblocks to trade and will help grow dairy sales in one of the world’s most populous markets. NMPF looks forward to reviewing the details of the agreement and working with the Administration to ensure Indonesia upholds its end of the bargain.”
    National Oilseed Processors Association President and CEO Devin Mogler: “We commend the Trump Administration for prioritizing U.S. farmers in this trade deal with Indonesia, and specifically for including soybean meal purchases. NOPA members have invested over $6 billion to expand U.S. soybean crushing capacity by over 25% since 2023 levels to meet growing demand for food, feed and biofuel use, adding value to the crops our great U.S. farmers produce. Ensuring we have access to growing soybean meal markets like Indonesia ensures our farmers remain competitive relative to global competitors.”
    Renewable Fuels Association President and CEO Geoff Cooper: “We’re grateful to President Trump and his team for ensuring U.S. agriculture and renewable fuels are prominently included in these framework agreements. These deals will ultimately help open important Asian markets and allow greater access for American farm products, renewable fuels, and co-products like distillers grains. This administration clearly understands the leading role American farmers and renewable fuel producers can play when it comes to feeding and fueling the world, and we salute President Trump’s efforts to secure fair and reciprocal agreements around the globe. Breaking down barriers to fair trade strengthens our rural economy and the United States as a whole.”
    The Meat Institute: “The Meat Institute’s members celebrate @realdonaldtrump and @USTradeRep’s work on a deal with Indonesia opening up this important market for meat & poultry. We look forward to seeing the details of the deal & to continued efforts to remove remaining barriers to trade in other SE Asian markets.”
    U.S. Dairy Export Council President and CEO Krysta Harden: “Yesterday’s announcement is an important step forward in advancing opportunities for U.S. dairy exporters. This deal is poised to strengthen our long-term partnership with Indonesia while giving U.S. dairy companies a better shot at competing fairly. While verification that Indonesia honors its commitments will be necessary, the removal of both tariff and nontariff barriers is precisely what our industry needs to create new momentum for U.S. dairy exports and deeper collaboration with a key Southeast Asian partner.”
    U.S. Grains Council President and CEO Ryan LeGrand: “The U.S. Grains Council commends the Trump Administration on its historic trade deal with Indonesia, that will enhance trade for both countries and places a zero tariff on the products the Council represents. In the 2023-24 marketing year, Indonesia was the fourth largest importer for U.S. distillers dried grains with solubles at 1,024,000 metric tons. That translates into a nearly $299 million market, and we hope the deal announced today will not only help see those numbers increase but open doors wider to the full range of products we have to offer.”
    U.S. Meat Export Federation President and CEO Dan Halstrom: “USMEF thanks USTR for its tireless efforts to negotiate a meaningful agreement with Indonesia, tackling many challenging issues. Indonesia is a market with incredible potential, in which the opportunity for U.S. beef is estimated at $250 million annually. But today, exports are minimal due to numerous trade barriers. We are encouraged to see that the highlights detailed in the U.S.-Indonesia joint statement include resolving key issues such as import licensing, the commodity balance policy, and Indonesia’s onerous plant-by-plant approval process. For both U.S. beef and U.S. pork, these longstanding restrictions have limited exports to Indonesia. Indonesian importers and consumers are demanding U.S. red meat and we look forward to the swift conclusion of these negotiations and expanded export opportunities.”
    U.S. Wheat Associates President and CEO Mike Spier: “We are excited and grateful to track this wide-reaching government commitment that includes the agreement signed earlier this month between Indonesian flour millers and the U.S. wheat industry. We thank the Trump Administration, the U.S. Trade Representative and the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA-FAS) for their continued work on behalf of American wheat farmers.”

    MIL OSI USA News –

  • MIL-OSI: Farmers and Merchants Bancshares, Inc. Reports Earnings of $2.4 Million or $0.74 per Share for the Six Months Ended June 30, 2025

    Source: GlobeNewswire (MIL-OSI)

    HAMPSTEAD, Md., July 23, 2025 (GLOBE NEWSWIRE) — Farmers and Merchants Bancshares, Inc. (the “Company”), the parent company of Farmers and Merchants Bank (the “Bank” and, together with the Company, “we”, “us” and “our”), announced that net income for the six months ended June 30, 2025 was $2.4 million, or $0.74 per common share (basic and diluted) compared to $2.3 million, or $0.74 per common share (basic and diluted), for the same period in 2024. The Company’s return on average equity during the six months ended June 30, 2025 was 8.18% compared to 8.81% for the same period in 2024. The Company’s return on average assets during both the six months ended June 30, 2025 and 2024 was 0.58%.

    Net income for the three months ended June 30, 2025 was $1.2 million, or $0.38 per common share (basic and diluted) compared to $1.1 million, or $0.35 per common share (basic and diluted), for the second quarter of 2024. The Company’s return on average equity during the three months ended June 30, 2025 was 8.15% compared to 8.23% for the same period in 2024. The Company’s return on average assets during the three months ended June 30, 2025 was 0.58% compared to 0.55% for the same period in 2024.

    Net interest income for the six months ended June 30, 2025 was $1.18 million higher when compared to the same period in 2024 due to a widening net interest margin of 2.92% for the six months ended June 30, 2025 compared to 2.70% for the same period in 2024. The yield on earning assets increased to 5.11% for the six months ended June 30, 2025, compared to 4.76% for the same period in 2024. The cost of interest bearing liabilities increased to 2.67% for the six months ended June 30, 2025, up from 2.57% for the same period in 2024. Average interest earning assets were $793.5 million for the six months ended June 30, 2025 compared to $772.3 million for the same period in 2024. Gross interest income increased by $2.0 million to $20.2 million for the six months ended June 30, 2025, up from $18.2 million for the same period in 2024. Average interest bearing liabilities increased by $31.8 million to $650.7 million for the six months ended June 30, 2025 from $618.9 million for the same period in 2024. Total interest expense increased $756 thousand to $8.7 million for the six months ended June 30, 2025 compared to $7.9 million for the same period in 2024.

    The Company recorded a $268 thousand provision for credit losses for the six months ended June 30, 2025. There was no provision recorded for the six months ended June 30, 2024. The increase in the provision was related to the write down of one loan by $356 thousand, which was ultimately foreclosed upon.

    Noninterest income increased by $91 thousand for the six months ended June 30, 2025 when compared to the same period in 2024. The increase was due to several factors, including a $53 thousand increase in mortgage banking revenue, a $26 thousand increase in bank owned life insurance income, a $126 thousand increase in gain on settlement of fair value hedge, and an $83 thousand increase in fees and commissions. These increases were offset by lower service charges on deposits of $70 thousand and $143 thousand of non-recurring gain on insurance settlement recognized in 2024. Noninterest expense was $992 thousand higher in the six months ended June 30, 2025 when compared to the same period in 2024, due primarily to a $294 thousand in salaries and benefits and a $329 thousand combined increase in occupancy and furniture and equipment costs. ATM and debit card expenses increased by $35 thousand due to security enhancements added with the core system conversion. Also, the Bank’s FDIC assessment expense increased by $124 thousand due to higher FDIC assessment rates. Professional services increased by $27 thousand due to the higher legal fees in 2025 related to stockholder matters.

    Total assets decreased slightly to $842.2 million at June 30, 2025 from $844.6 million at December 31, 2024. Loans increased to $615.5 million at June 30, 2025 from $583.0 million at December 31, 2024. Investments in debt securities decreased to $142.8 million at June 30, 2025 from $146.2 million at December 31, 2024. Deposits decreased to $748.9 million at June 30, 2025 from $758.8 million at December 31, 2024. The Company’s tangible equity was $53.2 million at June 30, 2025 compared to $49.2 million at December 31, 2024.

    The book value of the Company’s common stock increased to $18.97 per share at June 30, 2025 from $17.77 per share at December 31, 2024. Book value per share at June 30, 2025 is reflective of the $15.1 million unrealized loss, net of income taxes, on the Bank’s available for sale (“AFS”) securities portfolio as a result of the rise in interest rates since the time of purchase. Changes in the market value of the AFS securities portfolio, net of income taxes, are reflected in the Company’s equity, but are not included in the income statement. The AFS securities portfolio is comprised of 72% government agency mortgage backed securities which are fully guaranteed, 23% investment grade non agency mortgage backed securities, 1% investment grade corporate and municipal bonds, and 4% subordinated debt of other community banks. Management does not believe there is any indication of credit deterioration in any of the bonds and we intend to hold these securities to maturity, so no actual losses are anticipated. There is no impact on regulatory capital because the Bank elected many years ago to not include in the calculation of regulatory capital changes in the market value of the AFS securities portfolio regardless of whether they are positive or negative.

    Gary A. Harris, President and CEO, commented “Our net interest margin has continued to grow over the past year. Our yields on earning assets are rising with our loan growth and loans are renewing at higher interest rate levels. This coupled with moderating cost of funds has improved our net interest income. Loan growth is strong with over $32.5 million in net loans being booked in the first half of 2025. Asset quality remains high with few delinquencies and our liquidity position remains strong. Moving into the second half of 2025, we believe we are well positioned to improve on the gains we have made thus far. ”

    About the Company

    The Company is a financial holding company and the parent company of the Bank. The Bank was chartered in Maryland in 1919 and has over 100 years of service to the community. The Bank serves the deposit and financing needs of both consumers and businesses in Carroll and Baltimore Counties along the Route 30, Route 795, Route 140, Route 26, and Route 45 corridors. The main office is located in Upperco, Maryland, with seven additional branches in Owings Mills, Hampstead, Greenmount, Reisterstown, Westminster, Eldersburg, and Towson. Certain broker-dealers make a market in the common stock of Farmers and Merchants Bancshares, Inc., and trades are reported through the OTC Markets Group’s OTCID Market under the symbol “FMFG”.

    Forward-Looking Statements

    The statements contained herein that are not historical facts are forward-looking statements (as defined by the Private Securities Litigation Reform Act of 1995) based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. These statements are evidenced by terms such as “anticipate,” “estimate,” “should,” “will,” “expect,” “believe,” “intend,” and similar expressions. Although these statements reflect management’s good faith beliefs and projections, they are not guarantees of future performance and they may not prove true. These projections involve risk and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements. For a discussion of these risks and uncertainties, see the section of the periodic reports filed by Farmers and Merchants Bancshares, Inc. with the Securities and Exchange Commission entitled “Risk Factors”.

     
    Farmers and Merchants Bancshares, Inc. and Subsidiaries
    Consolidated Balance Sheets
    Dollars in thousands except share data
    (Unaudited)
     
        June 30,   December 31,
        2025   2024 *
           
    Assets  
           
    Cash and due from banks   $ 30,282     $ 63,962  
    Federal funds sold and other interest-bearing deposits     1,001       697  
    Cash and cash equivalents     31,283       64,659  
    Certificates of deposit in other banks     100       100  
    Securities available for sale, at fair value     121,434       125,713  
    Securities held to maturity, at amortized cost less allowance for credit losses of $81 and $60     21,328       20,499  
    Equity security, at fair value     535       518  
    Restricted stock, at cost     1,190       921  
    Mortgage loans held for sale     641       157  
    Loans, less allowance for credit losses of $4,233 and $4,260     615,469       582,993  
    Premises and equipment, net     7,267       7,349  
    Accrued interest receivable     2,388       2,439  
    Deferred income taxes, net     7,120       7,606  
    Other real estate owned, net     2,758       1,176  
    Bank owned life insurance     15,535       15,324  
    Goodwill and other intangibles, net     7,022       7,026  
    Other assets     8,148       8,163  
    Total Assets   $ 842,218     $ 844,643  
           
    Liabilities and Stockholders’ Equity      
           
    Deposits      
    Noninterest-bearing   $ 121,398     $ 107,197  
    Interest-bearing     627,500       651,609  
    Total deposits     748,898       758,806  
    Securities sold under repurchase agreements     4,772       5,564  
    Federal Home Loan Bank of Atlanta advances     10,000       5,000  
    Long-term debt, net of issuance costs     10,388       11,329  
    Accrued interest payable     919       1,003  
    Other liabilities     6,995       6,669  
    Total liabilities     781,972       788,371  
           
    Stockholders’ equity      
    Common stock, par value $.01 per share, authorized 5,000,000 shares; issued and outstanding 3,175,347 shares in 2025 and 3,166,653 shares in 2024     32       32  
    Additional paid-in capital     31,299       31,136  
    Retained earnings     43,976       41,613  
    Accumulated other comprehensive loss     (15,061 )     (16,509 )
    Total Stockholders’ equity     60,246       56,272  
    Total liabilities and stockholders’ equity   $ 842,218     $ 844,643  
    * Derived from audited consolidated financial statements      
    Farmers and Merchants Bancshares, Inc. and Subsidiaries
    Consolidated Statements of Income
    Dollars in thousands except per share data
    (Unaudited)
     
        Three Months Ended June 30,   Six Months Ended June 30,
        2025   2024   2025   2024
                 
    Interest income            
    Loans, including fees   $ 8,899     $ 7,238     $ 17,265     $ 14,120  
    Investment securities – taxable     1,070       1,592       2,121       3,171  
    Investment securities – tax exempt     153       138       309       274  
    Federal funds sold and other interest earning assets     171       212       485       681  
    Total interest income     10,293       9,180       20,180       18,246  
                 
    Interest expense            
    Deposits     4,071       3,232       8,321       6,333  
    Securities sold under repurchase agreements     12       13       29       36  
    Federal Home Loan Bank advances     110       32       122       44  
    Federal Reserve Bank advances     –       641       –       1,263  
    Long-term debt     109       129       222       262  
    Total interest expense     4,302       4,047       8,694       7,938  
    Net interest income     5,991       5,133       11,486       10,308  
                 
    Provision for credit losses     238       –       268       –  
                 
    Net interest income after provision for credit losses     5,753       5,133       11,218       10,308  
                 
    Noninterest income            
    Service charges on deposit accounts     178       217       342       412  
    Mortgage banking income     47       18       76       23  
    Bank owned life insurance income     106       94       211       185  
    Fair value adjustment of equity security     1       (2 )     10       (6 )
    Gain (loss) on settlement of fair value hedge     –       (31 )     94       (32 )
    Gain on insurance proceeds, net     –       –       –       143  
    Other fees and commissions     124       78       236       153  
    Total noninterest income     456       374       969       878  
                 
    Noninterest expense            
    Salaries     2,191       1,993       4,398       3,969  
    Employee benefits     531       441       913       1,048  
    Occupancy     280       278       608       524  
    Furniture and equipment     480       328       815       570  
    Professional services     218       158       391       364  
    Automated teller machine and debit card expenses     168       166       336       301  
    Federal Deposit Insurance Corporation premiums     117       94       316       192  
    Postage, delivery, and armored carrier     64       64       142       145  
    Advertising     74       74       130       123  
    Other real estate owned expense, net     67       3       71       5  
    Other     540       524       1,108       995  
    Total noninterest expense     4,730       4,123       9,228       8,236  
                 
    Income before income taxes     1,479       1,384       2,959       2,950  
    Income taxes     280       305       596       652  
    Net income   $ 1,199     $ 1,079     $ 2,363     $ 2,298  
                 
    Earnings per common share – basic   $ 0.38     $ 0.35     $ 0.74     $ 0.74  
    Earnings per common share – diluted   $ 0.38     $ 0.35     $ 0.74     $ 0.74  
    Farmers and Merchants Bancshares, Inc.
    Selected Consolidated Financial Data
    (Unaudited)
    Dollars in thousands except per share data
             
        As of or For the Three Months Ended June 30,
        2025   2024   2023
             
    OPERATING DATA        
             
    Interest income   $ 10,293     $ 9,180     $ 7,384  
    Interest expense     4,302       4,047       2,113  
    Net interest income     5,991       5,133       5,271  
    Provision for (recovery of) credit losses     238       –       (225 )
    Net interest income after provision for (recovery of) credit losses     5,753       5,133       5,496  
    Noninterest income     456       374       403  
    Noninterest expense     4,730       4,123       3,686  
    Income before income taxes     1,479       1,384       2,213  
    Income taxes     280       305       543  
    Net income   $ 1,199     $ 1,079     $ 1,670  
             
    PER SHARE DATA        
             
    Net income (Basic and diluted)   $ 0.38     $ 0.35     $ 0.54  
    Dividends   $ 0.00     $ 0.33     $ 0.33  
    Book value   $ 18.97     $ 17.77     $ 16.13  
             
    KEY RATIOS        
             
    Return on average assets     0.58 %     0.55 %     0.92 %
    Return on average equity     8.15 %     8.23 %     13.22 %
    Efficiency ratio     73.37 %     74.86 %     68.17 %
    Net yield on interest-earning assets     3.03 %     2.71 %     3.00 %
    Tier 1 capital leverage ratio     9.51 %     9.58 %     9.99 %
             
    AT PERIOD END        
             
    Total assets   $ 842,218     $ 798,556     $ 730,262  
    Gross loans     619,702       550,118       535,646  
    Cash and cash equivalents     31,283       24,510       12,288  
    Securities     142,762       177,661       139,949  
    Deposits     748,898       651,209       631,811  
    Long term debt, FRB and FHLB borrowings     20,388       81,271       38,154  
    Stockholders’ equity     60,246       54,543       49,834  
             
    SELECTED AVERAGE BALANCES        
             
    Total assets   $ 825,060     $ 784,510     $ 726,212  
    Gross loans     616,097       541,267       531,173  
    Cash and cash equivalents     14,959       18,395       9,151  
    Securities     165,409       204,779       167,107  
    Deposits     734,631       647,215       630,567  
    Long term debt, FRB and FHLB borrowings     20,786       72,762       35,249  
    Stockholders’ equity     58,827       52,431       50,538  
             
    ASSET QUALITY        
             
    Nonperforming assets   $ 3,028     $ 1,646     $ 1,898  
             
    Nonperforming assets/total assets     0.36 %     0.21 %     0.26 %
             
    Allowance for credit losses/total loans     0.68 %     0.74 %     0.87 %
    Farmers and Merchants Bancshares, Inc.
    Selected Consolidated Financial Data
    (Unaudited)
    Amounts in thousands except per share data
             
        As of or For the Six Months Ended June 30,
        2025   2024   2023
             
    OPERATING DATA        
             
    Interest income   $ 20,180     $ 18,246     $ 14,437  
    Interest expense     8,694       7,938       3,509  
    Net interest income     11,486       10,308       10,928  
    Provision for (recovery of) credit losses     268       –       (495 )
    Net interest income after provision for credit losses     11,218       10,308       11,423  
    Noninterest income     969       878       785  
    Noninterest expense     9,228       8,236       7,443  
    Income before income taxes     2,959       2,950       4,765  
    Income taxes     596       652       1,194  
    Net income   $ 2,363     $ 2,298     $ 3,571  
             
    PER SHARE DATA        
             
    Net income (Basic and diluted)   $ 0.74     $ 0.74     $ 1.16  
    Dividends   $ 0.00     $ 0.33     $ 0.33  
    Book value   $ 18.97     $ 17.77     $ 16.13  
             
    KEY RATIOS        
             
    Return on average assets     0.58 %     0.58 %     0.99 %
    Return on average equity     8.18 %     8.81 %     14.34 %
    Efficiency ratio     74.09 %     73.63 %     63.23 %
    Net yield on interest-earning assets     2.92 %     2.70 %     3.09 %
    Tier 1 capital leverage ratio     9.51 %     9.58 %     9.99 %
             
    AT PERIOD END        
             
    Total assets   $ 842,218     $ 798,556     $ 730,262  
    Gross loans     619,702       550,118       535,646  
    Cash and cash equivalents     31,283       24,510       12,288  
    Securities     142,762       177,661       139,949  
    Deposits     748,898       651,209       631,811  
    Long term debt, FRB and FHLB borrowings     20,388       81,271       38,154  
    Stockholders’ equity     60,246       54,543       49,834  
             
    SELECTED AVERAGE BALANCES        
             
    Total assets   $ 820,910     $ 792,174     $ 724,668  
    Gross loans     604,875       537,917       528,368  
    Cash and cash equivalents     21,830       27,809       8,936  
    Securities     166,812       206,593       168,482  
    Deposits     733,685       655,331       628,434  
    Long term debt, FRB and FHLB borrowings     18,291       71,140       35,689  
    Stockholders’ equity     57,742       52,192       49,802  
             
    ASSET QUALITY        
             
    Nonperforming assets   $ 3,028     $ 1,646     $ 1,898  
             
    Nonperforming assets/total assets     0.36 %     0.21 %     0.26 %
             
    Allowance for credit losses/total loans     0.68 %     0.74 %     0.87 %
    Contact: Mr. Gary A. Harris
      President and Chief Executive Officer
      (410) 374-1510, ext. 1104

    The MIL Network –

  • MIL-OSI Africa: Hope for Liberia’s youth as country pioneers African Development Bank-financed Youth Entrepreneurship Investment Bank

    Source: APO

    • Program will turn job seekers into job creators – Liberian President Boakai
    • The future of Liberia’s youth cannot be left to hustling – Dr. Adesina

    Liberia has become the first country to launch an African Development Bank Group initiative (www.AfDB.org) that will help tackle youth unemployment among African youth.

    President of the Republic of Liberia, Joseph Nyuma Boakai Sr was joined in the capital Monrovia by the Bank Group’s President, Dr. Akinwumi A. Adesina for the official launch of the first Youth Entrepreneurship Investment Bank (YEIB) (https://apo-opa.co/413UWzR), on Tuesday 22 July.

    The Youth Entrepreneurship Investment Banks will promote private sector-led inclusive economic development, by creating entrepreneurship opportunities for young Africans aged 18-35. According to the Bank’s Country Focus Report 2025 (https://apo-opa.co/3GRnm9E), for Liberia, underemployment and informal employment have long undermined the country’s ability to harness a key demographic strength. 

    To address these challenges, Liberia’s Youth Entrepreneurship Investment Bank is expected to finance 30,000 youth-led businesses, create 120,000 direct and indirect jobs, contribute $80 million to government revenues through taxes, and unlock up to $500 million in additional lending to youth-owned businesses across the country.

    The Youth Bank is being jointly financed by the African Development Fund—the concessional lending arm of the African Development Bank Group ($15.9 million)—and the Government of Liberia ($1.2 million in in-kind contributions).

    “[The YEIB] speaks directly to the heart of our future because over sixty percent of our population is under the age of thirty. This program gives hope to our young people by turning them from job seekers into job creators,” said President Boakai. “It will provide financing, mentorship, and the skills they need to succeed in agriculture, technology, the knowledge based economy, and other emerging sectors.”

    “Liberia must not watch as its best assets—its youth—falter,” Adesina said. “The future of Liberia’s youth cannot be left to ‘hustling.’” He added that with recruitment ongoing, and licensing expected to be completed shortly, the Liberian YEIB is scheduled to commence operations in early 2026, with a focus on “critical sectors with immense opportunities for the youth, including agriculture, value addition with agribusiness, digital services, mining and tourism.”

    Youth entrepreneurship banks have also been approved for Nigeria (https://apo-opa.co/4kQEeeF), Ethiopia (https://apo-opa.co/417MuzC), and Cote d’Ivoire (https://apo-opa.co/3H1eA8W), representing a growing commitment to enhancing private sector development through improved financing for entrepreneurs, on a continent where three-quarters of the population are below the age of 35.   

    The Bank has since 1967 invested more than $1.02 billion in 72 projects in Liberia, and as of February 2024, it had an active portfolio of 18 sovereign operations worth $314.77 million, focusing primarily on transport infrastructure, energy development (https://apo-opa.co/45ev1Il), and agricultural transformation. These investments include the Mano River Union road network (https://apo-opa.co/44WwNfW) connecting Liberia with neighbouring countries, regional power interconnection initiatives, and programs supporting smallholder farmers across the country.

    The Bank’s operations in Liberia are funded through multiple sources, with the African Development Fund—the concessional lending arm of the Bank Group—providing most of the financing, supplemented by the Transition Support Facility (https://apo-opa.co/4nZiwrH) and various specialized funds including the Nigeria Trust Fund (https://apo-opa.co/3UtSnn2).

    Read President Boakai’s speech at the YEIB launch here (https://apo-opa.co/4m7qBbI).

    Read Dr. Adesina’s speech here (https://apo-opa.co/3H11fNR).

    Distributed by APO Group on behalf of African Development Bank Group (AfDB).

    Media Contacts:
    Natalie Nkembuh and Tolu Ogunlesi
    Communication and Media Relations Department
    media@afdb.org

    About the African Development Bank Group:
    The African Development Bank Group is Africa’s leading development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). Represented in 41 African countries, with an external office in Japan, the Bank contributes to the economic development and social progress of its 54 regional member countries. For more information: www.AfDB.org

    Media files

    .

    MIL OSI Africa –

  • MIL-OSI USA: Rep. Andrea Salinas Leads Colleagues in Letter Opposing Trump Administration’s Attacks on the Forest Service

    Source: US Representative Andrea Salinas (OR-06)

    Washington, D.C. – Today, U.S. Representative Andrea Salinas (OR-06), joined by ten of her colleagues on the House Agriculture Committee, sent a letter to President Trump highlighting the harm his administration has done to the U.S. Forest Service.

    The letter demonstrates that the Trump administration’s actions – which include firing thousands of fire-qualified personnel, slashing funding, and moving forward an ill-conceived reorganization plan – will undermine wildfire preparedness and response across the country. The letter calls on President Trump to reverse course to undo the damage his administration has already caused.

    Click here or see below for the full letter:

    Dear President Trump,

     As we move deeper into wildfire season, we write to express our grave concern regarding your administration’s sustained attacks on the U.S. Forest Service (USFS). Widespread staff reductions, irresponsible budget proposals, and harmful organizational changes undermine the agency’s ability to effectively manage public lands, mitigate the risk of extreme wildfire, and protect the safety of communities across the country. 

    In early 2025, USFS undertook large-scale staffing reductions. More than 3,400 probationary employees were terminated, and thousands more departed under early retirement and separation incentives. The agency lost qualified wildfire response staff, as well as personnel specializing in fuels and forest management. These staff also conducted essential forest restoration work in the wake of wildfires to help critical ecosystems recover quickly and effectively. The loss of this expertise directly impairs the agency’s ability to reduce wildfire risk and respond effectively when fires occur moving forward. Despite what DOGE may claim, these employees were not part of some imagined bureaucratic fraud, they were dedicated public servants working to protect our public lands and our communities.

    In recent months your administration has advanced plans to shift many wildland fire responsibilities away from USFS and into a new entity housed within the Department of the Interior. This proposal has raised serious concerns among experts in fire response and forest management who warn it would create unnecessary disruption, fragment coordination, and delay urgently needed fuels reduction treatments during a time of escalating wildfire threats. For instance, the National Association of Forest Service Retirees has raised concerns that such an entity would take billions of dollars and many years to establish, even if done in an effective manner that preserves federal firefighting capabilities and minimizes chaos. There is also concern that such a new entity would ignore the critical role rank-and-file USFS workers play in fire preparedness and response and the inherent connection between wildfire and ongoing forest health and management. Moreover, as we move away from having a definable fire season and towards year-round risk of severe fire behavior, it is hard to imagine reorganizing our nation’s federal wildland firefighting responsibilities without creating unnecessary confusion and stress while attempting to protect vulnerable communities.

    Unfortunately, based on your administration’s track record, these concerns are well founded. From the chaotic mass firings of USFS personnel and the disruption caused by DOGE’s unfounded allegations of “waste, fraud, and abuse,” to the implementation of ill-conceived funding freezes and issuance of repetitive and vague Executive Orders, your Administration has repeatedly demonstrated an inability to execute complex plans efficiently or in good faith. It should come as no surprise, then, that your budget request included no funding to assist with any reorganization effort – nor did it request funds to replace the loss of personnel critical to the USFS’s wildfire preparedness and response capabilities.

    We would be remiss not to also mention our concern with the USFS budget proposal for Fiscal Year 2026. Slashing support for state, tribal, and private forestry programs that provide technical and financial assistance to landowners and resource managers to help sustain the nation’s forests and grasslands, protect communities from wildland fire, and restore forest ecosystems is downright dangerous. For example, eliminating funding for the Forest Service’s Collaborative Forest Landscape Restoration program, one of the agency’s most popular and effective programs, will actively hinder our ability to reduce the risk of catastrophic wildfire and support economic revitalization in rural communities.

    The USFS is also currently withholding funding from critical state, tribal, and private forestry programs, which are essential to preparing for and responding to wildfire on non-federal lands. We are deeply concerned by reports that program funding is being redirected to pay for the unauthorized and ill-conceived Deferred Resignation Program (DRP). Reallocating funding from its congressionally authorized purpose in order to pay employees to not work is an absurd, illegal, and irresponsible use of taxpayer dollars. If additional resources are desired to pursue DRP or other reorganization efforts, USFS should formally request and justify the need for these resources.

    Moving forward, we urge you to direct USFS to rectify the harm it has already done to wildfire preparedness and response. That means re-hiring or replacing terminated employees and resuming the distribution of state, tribal, and private forestry grants. It also means dropping ill-conceived reorganization plans until meaningful planning has occurred and required funds have been secured.

    The wildfire crisis is not going away. We should work together to reverse the dangerous course USFS is on, and bolster our wildfire preparedness and response capacity through collaborative, interagency efforts with a proven track record of success. Failure to do so will have catastrophic consequences.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: Senator Marshall: This is the Greatest Betrayal of American Trust in My Lifetime

    US Senate News:

    Source: United States Senator for Kansas Roger Marshall

    Senator Marshall Joins The Joe Pags Show to Discuss DNI’s Russia Report
    Washington – On Wednesday, U.S. Senator Roger Marshall, M.D. (R-Kansas), joined Joe Pags on the Joe Pags Show to discuss Medicaid and rural hospitals, the MAHA agenda, what needs to be done to help improve American healthcare outcomes, and what will happen to the perpetrators identified in DNI Tulsi Gabbard’s recent report about the Russia misinformation scandal.

    Click HERE or on the image above to watch Senator Marshall’s full interview.
    On the challenges facing rural hospitals:
    “This is one of my favorite topics. You know, I practiced medicine for 25 years in one of these rural hospitals. I helped run the hospital, delivered a baby every day in one of these hospitals for 25 years. You know, the challenge right now for rural hospitals is the rural economy. We have many counties that have lost half their population. They’re all moving to big, wonderful cities like Kansas City and Wichita. So the rural economy is really struggling. Only 5% of Medicaid dollars ever make it to rural America. So yes, 60% of rural hospitals are really struggling.
    And enter the One Big, Beautiful Bill – we try to help the rural economy by helping out with crop insurance, reference prices, doubling the death tax, and some of those types of business tax issues as well. So I think it’s the economy, right?”
    On Democrat misinformation regarding Medicaid and rural hospitals:“Joe, I think the left controls 90% of the message. They control the national media; it is that simple. But I came to Washington, DC, to save healthcare, and I think that we’ve saved Medicaid. For now, we’ve saved it. We put it back on solid financial footing so that Medicaid is there for those who need it the most. For senior citizens in nursing homes, for people with disabilities, for pregnant women, for children.
    “No one’s going to lose Medicaid unless they’re on it illegally, and there are 2 million people on it illegally right now. 2 million people getting it from two states right now. And then, the only other people that will lose their Medicaid are people that refuse to work. And all we’re asking is people work for 20 hours a week. When did having a job, when was that considered punishment? Why is that a bad thing?
    “I’m going to give you one more stat, Joe, is that 20 years ago, there was only 7 million healthy people on Medicaid. Today, there’s 34 million healthy people on Medicaid. Let’s help those people find a job. Let’s give them education. Let’s help give them a hand up, and not a handout.”
    On the importance of verifying people’s status for Medicaid:
    “So this would be Medicaid expansion as you know it. So, Medicaid expansion gives Medicaid to healthy people that are above the poverty line. And then they stopped really doing any types of checks and balances on people. People could just walk in and say, I don’t have a job, I’m not making any money, they would never verify it. But we had the technology data actually verify those things pretty easily, and then we would just check things once a year. So I understand, look, I want to help medicate people out, I want to make sure no one goes to bed hungry, but this idea of just checking people once a year, not verifying their story, is just dishonest.”
    On improving the quality of VA care:
    “So Joe, again, what’s important to me: my dad served, my brother served, I served, my son is serving everyone. Every generation of my family, someone has served. I want to make sure that we fulfill the promise we made to veterans, but it’s been done inefficiently. It’s amazing, when President Trump 45 was in office, the wait times went down for our veterans, the care was going up, and the patient satisfaction was going up.
    “But under Joe Biden, they hired more and more administrator-type of people. And now President Trump went in there and said, ‘we don’t want all this bloated administration.’ There’s hundreds of billions of dollars that we’re increasing every year for veterans. We want to make sure it’s patient interfacing. So it’s the counselors, it’s the nurses, it’s the physical therapists. Those are the people we want. We don’t want more and more bureaucrats setting up here in the VA, here in Washington, DC.”
    On what might replace Obamacare:
    “Absolutely, and we’ve had these conversations. My big three themes for fixing health care when I came here was anything that makes health care more transparent, anything that promotes innovation, and anything that makes patients consumers again, would drive down the cost of health care. And President Trump already has issued many executive orders on the transparency part of this that are coming to fruition as well… making hospitals show you what they’re going to charge you for if you need an MRI, make that imaging center share with you what it’s going to cost so consumers can shop more.
    “So our big thrust of legislation this semester, as I call it, is we dropped a big transparency bill, which in many cases is codifying what President Trump’s executive orders are. And then there’s an issue called prior authorization, where Medicare Advantage companies, especially, are trying to prevent patients from getting the care they need.
    “So I was recently with the White House and Dr. Oz, and Secretary Kennedy, putting some more rules around what they can and can’t do as far as withholding health care. So, absolutely, those conversations that went on since day one, and I’m very proud to work beside Dr. Oz, Dr. McCary, over in FDA, as well as Secretary Kennedy.”
    On healthcare cost transparency and medical monopolies:
    “Joe, I’m not sure if I have a great answer. I can certainly tell you that I believe that insurance companies and big hospitals wrote the ACA. And they knew exactly what they were doing. Through the years, increased regulations have led to monopolies. So, you think about healthcare in each community. There’s one hospital; there’s usually one or two insurance companies that control 80% of the market in the entire state as well. So, through the years, these monopolies have allowed them to do it more.
    “So, physicians would like to own hospitals. Hospitals can own physicians, but physicians cannot own hospitals. We would like to come back in and have more competition, but that was outlawed by the ACA as well. So, whenever there’s overregulation, that’s going to lead to consolidation of the industry and get them more and more free rein.”
    On the job that HHS Secretary Kennedy is doing thus far:
    “Well, I think we’re just getting started again. The backdrop of this is 60% of Americans have a chronic disease. We’re spending 90% of our healthcare dollars on those chronic diseases, think heart disease, hypertension, obesity, diabetes, Alzheimer’s, cancer, and anxiety. Those seven diseases are taking up 90% of [the] dollars [spent]. We think that there’s a significant nutritional component to all those. I think that we’re going to find that alzheimers is type three diabetes.
    “So, what can we do nutritionally to prevent those as well as treat them. So I’ve worked, obviously, I’ve grown up in agriculture, so I’ve had a foot in agriculture my whole life, a foot in healthcare since I was 23 or so, I started medical school, I guess.
    “So, as I listened to MAHA, I listened to the American farmers, and said: Where do we meet? How do we get healthy food? Well, I think it starts with healthy soil. It’s kind of a dirty topic, if you will, but that’s the focus. That’s what we’re working with, Secretary Kennedy and Secretary Rollins at Agriculture, who’s doing an incredible job, is trying to work with our farmers to make healthier soil, which is going to lead to healthy food and healthy people. And by the way, American farmers are doing so many great things already in this area.
    “So, I’ve been sharing with Secretary Kennedy best practices where we’re growing more with less. We’re decreasing by 90% the amount of fertilizer and pesticides that are leaving our field. We’re decreasing the amount that we’re putting on by 60% through modern-day agriculture practices. So, we’re working on this transition to get everybody practicing this regenerative agriculture.”
    On DNI Gabbard’s Russia misinformation report:
    “Joe, this is certainly new information to me. This White House meeting, with documentation of that meeting, adds Joe Biden’s name to being in that meeting as well. And I think what that document shows is this is the greatest betrayal of American trust in my lifetime. And you’re out there, your listeners right now, you’re sitting there thinking, well, the Democrats lied to us about COVID. They lied to us about Joe Biden’s health. And here’s his Royal Highness Barack Obama, that he lied to us as well and really organized this fraud, of what happened in this, Russia, Russia, Russia hoax.
    “And certainly the FISA court abuse, we knew all about that, but this is news to me that we can actually trace this all the way back to it to one Oval Office meeting, and they absolutely contradicted what the intelligence community was saying. I think that’s accurate.”
    On what will happen to the perpetrators of the hoax:
    “Yeah, Joe, I think it’s all the above. Certainly, we need the Justice Department to go full speed ahead and do whatever they can do. And meanwhile, the House and the Senate both have investigative committees. James Comer leads that over on the House side, and Rand Paul here on the Senate side. Ron Johnson also has a subcommittee that can focus on this as well. So, all of this needs to happen. Congress’s job is to expose everything and then let the Justice Department prosecute.
    “But regardless of where it goes, Joe, I think the story here, to me, is this betrayal of American trust as a physician. One of the first things I learned is that once you lose your reputation, you never get it back. And Americans don’t trust the federal government right now, and why would they right? So, I’m trying to work day and night to help restore that trust, but I think the Democrats just keep digging and digging a hole further and deeper. You know, the first thing you need to do when you’re in a hole is to stop digging. And here they are again, once again, in a deep, deep hole.”
    On the American right wanting to see arrests:
    “Joe, I sure hope so. I just want to tell you, you sound like my wife. You sound like my mom and dad. They say why isn’t somebody in handcuffs? Everything Hillary Clinton did to erase those emails. And the FISA court abuse. I’m not satisfied. You know, the judges should have paid the price for that. Everyone involved in that food chain of the FISA court abuse should have been fired at a minimum. And maybe one person went to jail, as I recall that.
    “So here we are. This is the next chapter of the FISA court abuse, and I think that’s what gives this story legs is… you dove into that story. I dove into that story, saying, my gosh, how did they do this? How did they fall for this, I mean, without orchestrating it? I sure hope so. I’m not a person to overpromise and underdeliver. I do think that Pam Bondi is serious. She would love to throw someone in jail. And I have a feeling Tulsi Gabbard would as well.”

    MIL OSI USA News –

  • MIL-OSI: First Merchants Corporation Announces Second Quarter 2025 Earnings Per Share

    Source: GlobeNewswire (MIL-OSI)

    MUNCIE, Ind., July 23, 2025 (GLOBE NEWSWIRE) — First Merchants Corporation (NASDAQ – FRME)

    Second Quarter 2025 Highlights:

    • Net income available to common stockholders was $56.4 million and diluted earnings per common share totaled $0.98 in the second quarter of 2025, compared to $39.5 million and $0.68 in the second quarter of 2024, and $54.9 million and $0.94 in the first quarter of 2025.
    • Robust capital position with Common Equity Tier 1 Capital Ratio of 11.35%.
    • Repurchased 818,480 shares totaling $31.7 million year-to-date; Repurchased 582,486 shares totaling $22.1 million during the second quarter.
    • Total loans grew $297.6 million, or 9.1% annualized, on a linked quarter basis, and $653.6 million, or 5.2%, during the last twelve months.
    • Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis.
    • Nonperforming assets to total assets were 36 basis points compared to 47 basis points on a linked quarter basis.
    • The efficiency ratio totaled 53.99% for the quarter.

    “Our strong balance sheet and earnings growth in the first half of the year underscore the strength and resilience of our business model,” said Mark Hardwick, Chief Executive Officer of First Merchants Bank. “With continued momentum in loan and deposit growth, expanding margins, disciplined expense management, and a robust capital position, we are well-positioned to deliver long-term value for our shareholders. We remain committed to supporting our clients and communities while navigating a dynamic economic environment with confidence and clarity.”

    Second Quarter Financial Results:

    First Merchants Corporation (the “Corporation) reported second quarter 2025 net income available to common stockholders of $56.4 million compared to $39.5 million during the same period in 2024. Diluted earnings per common share for the period totaled $0.98 per share compared to the second quarter of 2024 result of $0.68 per share.

    Total assets equaled $18.6 billion as of quarter-end and loans totaled $13.3 billion. During the past twelve months, total loans grew by $653.6 million, or 5.2%. On a linked quarter basis, loans grew $297.6 million, or 9.1% with growth primarily in Commercial & Industrial loans.

    Investments, totaling $3.4 billion, decreased $372.1 million, or 9.9%, during the last twelve months and decreased $46.2 million, or 5.4% annualized, on a linked quarter basis. The decline in the last twelve months reflected sales of available for sale securities in 2024 totaling $268.5 million.

    Total deposits equaled $14.8 billion as of quarter-end and increased by $228.5 million, or 1.6%, over the past twelve months. Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis. The loan to deposit ratio of 90.1% at period end remained stable on a linked quarter basis.

    The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $195.3 million as of quarter-end, or 1.47% of total loans. Net charge-offs totaled $2.3 million and provision for credit losses of $5.6 million was recorded during the quarter. Reserves for unfunded commitments totaling $18.0 million remain unchanged from the previous quarter. Non-performing assets to total assets were 0.36% for the second quarter of 2025, a decrease of 11 basis points compared to 0.47% in the linked quarter.

    Net interest income, totaling $133.0 million for the quarter, increased $2.7 million, or 2.1%, compared to prior quarter and increased $4.4 million, or 3.5% compared to the second quarter of 2024. Fully taxable equivalent net interest margin was 3.25%, an increase of three basis points compared to the first quarter of 2025 and an increase of nine basis points compared to the second quarter of 2024. During the quarter, higher yields on earnings assets outpaced increased yields on interest bearing liabilities resulting in margin expansion.

    Noninterest income totaled $31.3 million for the quarter, an increase of $1.3 million, compared to the first quarter of 2025 and was stable compared to the second quarter of 2024. The increase over first quarter of 2025 was driven primarily by higher gains on the sales of loans, treasury management fees, derivative hedge fees, and card payment fees offset by a decrease in other income associated with CRA investments.

    Noninterest expense totaled $93.6 million for the quarter, an increase of $0.7 million from the first quarter of 2025. The increase was from higher marketing and data processing costs.

    The Corporation’s total risk-based capital ratio equaled 13.06%, the common equity tier 1 capital ratio equaled 11.35%, and the tangible common equity ratio totaled 8.92%. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

    CONFERENCE CALL

    First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 9:00 a.m. (ET) on Thursday, July 24, 2025.

    To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register-conf.media-server.com/register/BI605c2e360ce04cfc9c4221bda7f67a49)

    To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/ced58zg3) during the time of the call. A replay of the webcast will be available until July 24, 2026.

    Detailed financial results are reported on the attached pages.

    About First Merchants Corporation

    First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

    First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

    FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

    Forward-Looking Statements

    This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements include statements about First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statements, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.

     
    CONSOLIDATED BALANCE SHEETS
    (Dollars In Thousands) June 30,
        2025       2024  
    ASSETS      
    Cash and due from banks $ 81,567     $ 105,372  
    Interest-bearing deposits   223,343       168,528  
    Investment securities available for sale   1,358,130       1,618,893  
    Investment securities held to maturity, net of allowance for credit losses   2,022,826       2,134,195  
    Loans held for sale   28,783       32,292  
    Loans   13,296,759       12,639,650  
    Less: Allowance for credit losses – loans   (195,316 )     (189,537 )
    Net loans   13,101,443       12,450,113  
    Premises and equipment   122,808       133,245  
    Federal Home Loan Bank stock   47,290       41,738  
    Interest receivable   93,258       97,546  
    Goodwill   712,002       712,002  
    Other intangibles   16,797       23,371  
    Cash surrender value of life insurance   305,695       306,379  
    Other real estate owned   177       4,824  
    Tax asset, deferred and receivable   97,749       107,080  
    Other assets   380,909       367,845  
    TOTAL ASSETS $ 18,592,777     $ 18,303,423  
    LIABILITIES      
    Deposits:      
    Noninterest-bearing $ 2,197,416     $ 2,303,313  
    Interest-bearing   12,600,162       12,265,757  
    Total Deposits   14,797,578       14,569,070  
    Borrowings:      
    Federal funds purchased   85,000       147,229  
    Securities sold under repurchase agreements   114,758       100,451  
    Federal Home Loan Bank advances   898,702       832,703  
    Subordinated debentures and other borrowings   62,617       93,589  
    Total Borrowings   1,161,077       1,173,972  
    Interest payable   16,174       18,554  
    Other liabilities   269,996       329,302  
    Total Liabilities   16,244,825       16,090,898  
    STOCKHOLDERS’ EQUITY      
    Preferred Stock, $1,000 par value, $1,000 liquidation value:      
    Authorized — 600 cumulative shares      
    Issued and outstanding – 125 cumulative shares   125       125  
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:      
    Authorized — 10,000 non-cumulative perpetual shares      
    Issued and outstanding – 10,000 non-cumulative perpetual shares   25,000       25,000  
    Common Stock, $.125 stated value:      
    Authorized — 100,000,000 shares      
    Issued and outstanding – 57,272,433 and 58,045,653 shares   7,159       7,256  
    Additional paid-in capital   1,163,170       1,191,193  
    Retained earnings   1,342,473       1,200,930  
    Accumulated other comprehensive loss   (189,975 )     (211,979 )
    Total Stockholders’ Equity   2,347,952       2,212,525  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,592,777     $ 18,303,423  
           
    CONSOLIDATED STATEMENTS OF INCOME Three Months Ended   Six Months Ended
    (Dollars In Thousands, Except Per Share Amounts) June 30,   June 30,
        2025       2024       2025       2024  
    INTEREST INCOME              
    Loans:              
    Taxable $ 195,173     $ 201,413     $ 382,901     $ 399,436  
    Tax-exempt   10,805       8,430       21,337       16,620  
    Investment securities:              
    Taxable   8,266       9,051       16,638       17,799  
    Tax-exempt   12,516       13,613       25,033       27,224  
    Deposits with financial institutions   1,892       2,995       4,264       9,488  
    Federal Home Loan Bank stock   1,083       879       2,080       1,714  
    Total Interest Income   229,735       236,381       452,253       472,281  
    INTEREST EXPENSE              
    Deposits   84,241       99,151       164,788       197,436  
    Federal funds purchased   965       126       1,777       126  
    Securities sold under repurchase agreements   663       645       1,405       1,677  
    Federal Home Loan Bank advances   9,714       6,398       19,078       13,171  
    Subordinated debentures and other borrowings   1,138       1,490       1,921       4,237  
    Total Interest Expense   96,721       107,810       188,969       216,647  
    NET INTEREST INCOME   133,014       128,571       263,284       255,634  
    Provision for credit losses   5,600       24,500       9,800       26,500  
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   127,414       104,071       253,484       229,134  
    NONINTEREST INCOME              
    Service charges on deposit accounts   8,566       8,214       16,638       16,121  
    Fiduciary and wealth management fees   8,831       8,825       17,475       17,025  
    Card payment fees   4,932       4,739       9,458       9,239  
    Net gains and fees on sales of loans   5,849       5,141       10,871       8,395  
    Derivative hedge fees   831       489       1,235       752  
    Other customer fees   401       460       816       887  
    Earnings on cash surrender value of life insurance   1,913       1,929       4,092       3,521  
    Net realized losses on sales of available for sale securities   (1 )     (49 )     (8 )     (51 )
    Other income (loss)   (19 )     1,586       774       2,083  
    Total Noninterest Income   31,303       31,334       61,351       57,972  
    NONINTEREST EXPENSES              
    Salaries and employee benefits   54,527       52,214       109,509       110,507  
    Net occupancy   6,845       6,746       14,061       14,058  
    Equipment   6,927       6,599       13,935       12,825  
    Marketing   1,997       1,773       3,350       2,971  
    Outside data processing fees   7,107       7,072       13,036       13,961  
    Printing and office supplies   272       354       619       707  
    Intangible asset amortization   1,505       1,771       3,031       3,728  
    FDIC assessments   3,552       3,278       7,200       7,565  
    Other real estate owned and foreclosure expenses   29       373       629       907  
    Professional and other outside services   3,741       3,822       7,002       7,774  
    Other expenses   7,096       7,411       14,128       13,345  
    Total Noninterest Expenses   93,598       91,413       186,500       188,348  
    INCOME BEFORE INCOME TAX   65,119       43,992       128,335       98,758  
    Income tax expense   8,287       4,067       16,164       10,892  
    NET INCOME   56,832       39,925       112,171       87,866  
    Preferred stock dividends   469       469       938       938  
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 56,363     $ 39,456     $ 111,233     $ 86,928  
                   
                   
    PER SHARE DATA:              
    Basic Net Income Available to Common Stockholders $ 0.98     $ 0.68     $ 1.93     $ 1.48  
    Diluted Net Income Available to Common Stockholders $ 0.98     $ 0.68     $ 1.92     $ 1.48  
    Cash Dividends Paid to Common Stockholders $ 0.36     $ 0.35     $ 0.71     $ 0.69  
    Tangible Common Book Value Per Share $ 27.90     $ 25.10     $ 27.90     $ 25.10  
    Average Diluted Common Shares Outstanding (in thousands)   57,773       58,328       58,005       58,800  
                                   
    FINANCIAL HIGHLIGHTS              
    (Dollars In Thousands) Three Months Ended   Six Months Ended
      June 30,   June 30,
       2025    2024    2025    2024
    NET CHARGE-OFFS $ 2,315       $ 39,644       $ 7,241       $ 41,897    
                   
    AVERAGE BALANCES:              
    Total Assets $ 18,508,785       $ 18,332,159       $ 18,425,723       $ 18,381,340    
    Total Loans   13,211,729         12,620,530         13,077,288         12,548,798    
    Total Earning Assets   17,158,984         17,013,984         17,060,278         17,068,917    
    Total Deposits   14,632,113         14,895,867         14,526,314         14,888,536    
    Total Stockholders’ Equity   2,340,010         2,203,361         2,340,440         2,222,750    
                   
    FINANCIAL RATIOS:              
    Return on Average Assets   1.23   %     0.87   %     1.22   %     0.96   %
    Return on Average Stockholders’ Equity   9.63         7.16         9.51         7.82    
    Return on Tangible Common Stockholders’ Equity   14.49         11.29         14.30         12.26    
    Average Earning Assets to Average Assets   92.71         92.81         92.59         92.86    
    Allowance for Credit Losses – Loans as % of Total Loans   1.47         1.50         1.47         1.50    
    Net Charge-offs as % of Average Loans (Annualized)   0.07         1.26         0.11         0.67    
    Average Stockholders’ Equity to Average Assets   12.64         12.02         12.70         12.09    
    Tax Equivalent Yield on Average Earning Assets   5.50         5.69         5.45         5.67    
    Interest Expense/Average Earning Assets   2.25         2.53         2.22         2.54    
    Net Interest Margin (FTE) on Average Earning Assets   3.25         3.16         3.23         3.13    
    Efficiency Ratio   53.99         53.84         54.26         56.47    
                   
    ASSET QUALITY                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
       2025    2025    2024    2024    2024
    Nonaccrual Loans $ 67,358       $ 81,922       $ 73,773       $ 59,088       $ 61,906    
    Other Real Estate Owned and Repossessions   177         4,966         4,948         5,247         4,824    
    Nonperforming Assets (NPA)   67,535         86,888         78,721         64,335         66,730    
    90+ Days Delinquent   4,443         4,280         5,902         14,105         1,686    
    NPAs & 90 Day Delinquent $ 71,978       $ 91,168       $ 84,623       $ 78,440       $ 68,416    
                       
    Allowance for Credit Losses – Loans $ 195,316       $ 192,031       $ 192,757       $ 187,828       $ 189,537    
    Quarterly Net Charge-offs   2,315         4,926         771         6,709         39,644    
    NPAs / Actual Assets %   0.36   %     0.47   %     0.43   %     0.35   %     0.36   %
    NPAs & 90 Day / Actual Assets %   0.39   %     0.49   %     0.46   %     0.43   %     0.37   %
    NPAs / Actual Loans and OREO %   0.51   %     0.67   %     0.61   %     0.51   %     0.53   %
    Allowance for Credit Losses – Loans / Actual Loans (%)   1.47   %     1.47   %     1.50   %     1.48   %     1.50   %
    Quarterly Net Charge-offs as % of Average Loans (Annualized)   0.07   %     0.15   %     0.02   %     0.21   %     1.26   %
    CONSOLIDATED BALANCE SHEETS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
        2025       2025       2024       2024       2024  
    ASSETS                  
    Cash and due from banks $ 81,567     $ 86,113     $ 87,616     $ 84,719     $ 105,372  
    Interest-bearing deposits   223,343       331,534       298,891       359,126       168,528  
    Investment securities available for sale   1,358,130       1,378,489       1,386,475       1,553,496       1,618,893  
    Investment securities held to maturity, net of allowance for credit losses   2,022,826       2,048,632       2,074,220       2,108,649       2,134,195  
    Loans held for sale   28,783       23,004       18,663       40,652       32,292  
    Loans   13,296,759       13,004,905       12,854,359       12,646,808       12,639,650  
    Less: Allowance for credit losses – loans   (195,316 )     (192,031 )     (192,757 )     (187,828 )     (189,537 )
    Net loans   13,101,443       12,812,874       12,661,602       12,458,980       12,450,113  
    Premises and equipment   122,808       128,749       129,743       129,582       133,245  
    Federal Home Loan Bank stock   47,290       45,006       41,690       41,716       41,738  
    Interest receivable   93,258       88,352       91,829       92,055       97,546  
    Goodwill   712,002       712,002       712,002       712,002       712,002  
    Other intangibles   16,797       18,302       19,828       21,599       23,371  
    Cash surrender value of life insurance   305,695       304,918       304,906       304,613       306,379  
    Other real estate owned   177       4,966       4,948       5,247       4,824  
    Tax asset, deferred and receivable   97,749       87,665       92,387       86,732       107,080  
    Other assets   380,909       369,181       387,169       348,384       367,845  
    TOTAL ASSETS $ 18,592,777     $ 18,439,787     $ 18,311,969     $ 18,347,552     $ 18,303,423  
    LIABILITIES                  
    Deposits:                  
    Noninterest-bearing $ 2,197,416     $ 2,185,057     $ 2,325,579     $ 2,334,197     $ 2,303,313  
    Interest-bearing   12,600,162       12,276,921       12,196,047       12,030,903       12,265,757  
    Total Deposits   14,797,578       14,461,978       14,521,626       14,365,100       14,569,070  
    Borrowings:                  
    Federal funds purchased   85,000       185,000       99,226       30,000       147,229  
    Securities sold under repurchase agreements   114,758       122,947       142,876       124,894       100,451  
    Federal Home Loan Bank advances   898,702       972,478       822,554       832,629       832,703  
    Subordinated debentures and other borrowings   62,617       62,619       93,529       93,562       93,589  
    Total Borrowings   1,161,077       1,343,044       1,158,185       1,081,085       1,173,972  
    Deposits and other liabilities held for sale   —       —       —       288,476       —  
    Interest payable   16,174       13,304       16,102       18,089       18,554  
    Other liabilities   269,996       289,247       311,073       292,429       329,302  
    Total Liabilities   16,244,825       16,107,573       16,006,986       16,045,179       16,090,898  
    STOCKHOLDERS’ EQUITY                  
    Preferred Stock, $1,000 par value, $1,000 liquidation value:                  
    Authorized — 600 cumulative shares                  
    Issued and outstanding – 125 cumulative shares   125       125       125       125       125  
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:                  
    Authorized — 10,000 non-cumulative perpetual shares                  
    Issued and outstanding – 10,000 non-cumulative perpetual shares   25,000       25,000       25,000       25,000       25,000  
    Common Stock, $.125 stated value:                  
    Authorized — 100,000,000 shares                  
    Issued and outstanding   7,159       7,226       7,247       7,265       7,256  
    Additional paid-in capital   1,163,170       1,183,263       1,188,768       1,192,683       1,191,193  
    Retained earnings   1,342,473       1,306,911       1,272,528       1,229,125       1,200,930  
    Accumulated other comprehensive loss   (189,975 )     (190,311 )     (188,685 )     (151,825 )     (211,979 )
    Total Stockholders’ Equity   2,347,952       2,332,214       2,304,983       2,302,373       2,212,525  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,592,777     $ 18,439,787     $ 18,311,969     $ 18,347,552     $ 18,303,423  
                       
    CONSOLIDATED STATEMENTS OF INCOME                  
    (Dollars In Thousands, Except Per Share Amounts) June 30,   March 31,   December 31,   September 30,   June 30,
       2025    2025    2024    2024    2024
    INTEREST INCOME                  
    Loans:                  
    Taxable $ 195,173       $ 187,728       $ 197,536       $ 206,680       $ 201,413    
    Tax-exempt   10,805         10,532         9,020         8,622         8,430    
    Investment securities:                  
    Taxable   8,266         8,372         9,024         9,263         9,051    
    Tax-exempt   12,516         12,517         12,754         13,509         13,613    
    Deposits with financial institutions   1,892         2,372         5,350         2,154         2,995    
    Federal Home Loan Bank stock   1,083         997         958         855         879    
    Total Interest Income   229,735         222,518         234,642         241,083         236,381    
    INTEREST EXPENSE                  
    Deposits   84,241         80,547         89,835         98,856         99,151    
    Federal funds purchased   965         812         26         329         126    
    Securities sold under repurchase agreements   663         742         680         700         645    
    Federal Home Loan Bank advances   9,714         9,364         8,171         8,544         6,398    
    Subordinated debentures and other borrowings   1,138         783         1,560         1,544         1,490    
    Total Interest Expense   96,721         92,248         100,272         109,973         107,810    
    NET INTEREST INCOME   133,014         130,270         134,370         131,110         128,571    
    Provision for credit losses   5,600         4,200         4,200         5,000         24,500    
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   127,414         126,070         130,170         126,110         104,071    
    NONINTEREST INCOME                  
    Service charges on deposit accounts   8,566         8,072         8,124         8,361         8,214    
    Fiduciary and wealth management fees   8,831         8,644         8,665         8,525         8,825    
    Card payment fees   4,932         4,526         4,957         5,121         4,739    
    Net gains and fees on sales of loans   5,849         5,022         5,681         6,764         5,141    
    Derivative hedge fees   831         404         1,594         736         489    
    Other customer fees   401         415         316         344         460    
    Earnings on cash surrender value of life insurance   1,913         2,179         2,188         2,755         1,929    
    Net realized losses on sales of available for sale securities   (1 )       (7 )       (11,592 )       (9,114 )       (49 )  
    Gain on branch sale   —         —         19,983         —         —    
    Other income (loss)   (19 )       793         2,826         1,374         1,586    
    Total Noninterest Income   31,303         30,048         42,742         24,866         31,334    
    NONINTEREST EXPENSES                  
    Salaries and employee benefits   54,527         54,982         55,437         55,223         52,214    
    Net occupancy   6,845         7,216         7,335         6,994         6,746    
    Equipment   6,927         7,008         7,028         6,949         6,599    
    Marketing   1,997         1,353         2,582         1,836         1,773    
    Outside data processing fees   7,107         5,929         6,029         7,150         7,072    
    Printing and office supplies   272         347         377         378         354    
    Intangible asset amortization   1,505         1,526         1,771         1,772         1,771    
    FDIC assessments   3,552         3,648         3,744         3,720         3,278    
    Other real estate owned and foreclosure expenses   29         600         227         942         373    
    Professional and other outside services   3,741         3,261         3,777         3,035         3,822    
    Other expenses   7,096         7,032         7,982         6,630         7,411    
    Total Noninterest Expenses   93,598         92,902         96,289         94,629         91,413    
    INCOME BEFORE INCOME TAX   65,119         63,216         76,623         56,347         43,992    
    Income tax expense   8,287         7,877         12,274         7,160         4,067    
    NET INCOME   56,832         55,339         64,349         49,187         39,925    
    Preferred stock dividends   469         469         469         468         469    
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 56,363       $ 54,870       $ 63,880       $ 48,719       $ 39,456    
                       
                       
    PER SHARE DATA:                  
    Basic Net Income Available to Common Stockholders $ 0.98       $ 0.95       $ 1.10       $ 0.84       $ 0.68    
    Diluted Net Income Available to Common Stockholders $ 0.98       $ 0.94       $ 1.10       $ 0.84       $ 0.68    
    Cash Dividends Paid to Common Stockholders $ 0.36       $ 0.35       $ 0.35       $ 0.35       $ 0.35    
    Tangible Common Book Value Per Share $ 27.90       $ 27.34       $ 26.78       $ 26.64       $ 25.10    
    Average Diluted Common Shares Outstanding (in thousands)   57,773         58,242         58,247         58,289         58,328    
    FINANCIAL RATIOS:                  
    Return on Average Assets   1.23   %     1.21   %     1.39   %     1.07   %     0.87   %
    Return on Average Stockholders’ Equity   9.63         9.38         11.05         8.66         7.16    
    Return on Tangible Common Stockholders’ Equity   14.49         14.12         16.75         13.39         11.29    
    Average Earning Assets to Average Assets   92.71         92.47         92.48         92.54         92.81    
    Allowance for Credit Losses – Loans as % of Total Loans   1.47         1.47         1.50         1.48         1.50    
    Net Charge-offs as % of Average Loans (Annualized)   0.07         0.15         0.02         0.21         1.26    
    Average Stockholders’ Equity to Average Assets   12.64         12.76         12.51         12.26         12.02    
    Tax Equivalent Yield on Average Earning Assets   5.50         5.39         5.63         5.82         5.69    
    Interest Expense/Average Earning Assets   2.25         2.17         2.35         2.59         2.53    
    Net Interest Margin (FTE) on Average Earning Assets   3.25         3.22         3.28         3.23         3.16    
    Efficiency Ratio   53.99         54.54         48.48         53.76         53.84    
    LOANS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
        2025       2025       2024       2024       2024  
    Commercial and industrial loans $ 4,440,924     $ 4,306,597     $ 4,114,292     $ 4,041,217     $ 3,949,817  
    Agricultural land, production and other loans to farmers   265,172       243,864       256,312       238,743       239,926  
    Real estate loans:                  
    Construction   836,033       793,175       792,144       814,704       823,267  
    Commercial real estate, non-owner occupied   2,171,092       2,177,869       2,274,016       2,251,351       2,323,533  
    Commercial real estate, owner occupied   1,226,797       1,214,739       1,157,944       1,152,751       1,174,195  
    Residential   2,397,094       2,389,852       2,374,729       2,366,943       2,370,905  
    Home equity   673,961       650,499       659,811       641,188       631,104  
    Individuals’ loans for household and other personal expenditures   141,045       140,954       166,028       158,480       162,089  
    Public finance and other commercial loans   1,144,641       1,087,356       1,059,083       981,431       964,814  
    Loans   13,296,759       13,004,905       12,854,359       12,646,808       12,639,650  
    Allowance for credit losses – loans   (195,316 )     (192,031 )     (192,757 )     (187,828 )     (189,537 )
    NET LOANS $ 13,101,443     $ 12,812,874     $ 12,661,602     $ 12,458,980     $ 12,450,113  
                       
                       
    DEPOSITS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
        2025       2025       2024       2024       2024  
    Demand deposits $ 7,798,695     $ 7,786,554     $ 7,980,061     $ 7,678,510     $ 7,757,679  
    Savings deposits   4,984,659       4,791,874       4,522,758       4,302,236       4,339,161  
    Certificates and other time deposits of $100,000 or less   617,857       625,203       692,068       802,949       889,949  
    Certificates and other time deposits of $100,000 or more   891,139       896,143       1,043,068       1,277,833       1,415,131  
    Brokered certificates of deposits1   505,228       362,204       283,671       303,572       167,150  
    TOTAL DEPOSITS $ 14,797,578     $ 14,461,978     $ 14,521,626     $ 14,365,100     $ 14,569,070  
                       
    1 – Total brokered deposits of $1.2 billion, which includes brokered CD’s of $505.2 million at June 30, 2025.
                       
    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
    (Dollars In Thousands)                      
      Three Months Ended
      June 30, 2025   June 30, 2024
      Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate     		   Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate
    ASSETS                      
    Interest-bearing deposits $ 252,613     $ 1,892     3.00   %   $ 322,647     $ 2,995     3.71   %
    Federal Home Loan Bank stock   46,598       1,083     9.30         41,749       879     8.42    
    Investment Securities: (1)                      
    Taxable   1,605,718       8,266     2.06         1,788,749       9,051     2.02    
    Tax-exempt (2)   2,042,326       15,843     3.10         2,240,309       17,232     3.08    
    Total Investment Securities   3,648,044       24,109     2.64         4,029,058       26,283     2.61    
    Loans held for sale   25,411       389     6.12         28,585       431     6.03    
    Loans: (3)                      
    Commercial   9,006,650       154,108     6.84         8,691,746       160,848     7.40    
    Real estate mortgage   2,200,521       25,062     4.56         2,150,591       23,799     4.43    
    HELOC and installment   834,901       15,614     7.48         823,417       16,335     7.94    
    Tax-exempt (2)   1,144,246       13,677     4.78         926,191       10,670     4.61    
    Total Loans   13,211,729       208,850     6.32         12,620,530       212,083     6.72    
    Total Earning Assets   17,158,984       235,934     5.50   %     17,013,984       242,240     5.69   %
    Total Non-Earning Assets   1,349,801               1,318,175          
    TOTAL ASSETS $ 18,508,785             $ 18,332,159          
    LIABILITIES                      
    Interest-Bearing Deposits:                      
    Interest-bearing deposits $ 5,545,158     $ 35,303     2.55   %   $ 5,586,549     $ 40,994     2.94   %
    Money market deposits   3,613,952       28,714     3.18         3,036,398       27,230     3.59    
    Savings deposits   1,282,951       2,513     0.78         1,508,734       3,476     0.92    
    Certificates and other time deposits   2,003,682       17,711     3.54         2,414,967       27,451     4.55    
    Total Interest-Bearing Deposits   12,445,743       84,241     2.71         12,546,648       99,151     3.16    
    Borrowings   1,250,519       12,480     3.99         885,919       8,659     3.91    
    Total Interest-Bearing Liabilities   13,696,262       96,721     2.82         13,432,567       107,810     3.21    
    Noninterest-bearing deposits   2,186,370               2,349,219          
    Other liabilities   286,143               347,012          
    Total Liabilities   16,168,775               16,128,798          
    STOCKHOLDERS’ EQUITY   2,340,010               2,203,361          
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,508,785             $ 18,332,159          
    Net Interest Income (FTE)     $ 139,213             $ 134,430      
    Net Interest Spread (FTE) (4)         2.68   %           2.48   %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.50   %           5.69   %
    Interest Expense / Average Earning Assets         2.25   %           2.53   %
    Net Interest Margin (FTE) (5)         3.25   %           3.16   %
                           
    (1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $6,199 and $5,859 for the three months ended June 30, 2025 and 2024, respectively.
    (3) Non accruing loans have been included in the average balances.
    (4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.
     
    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
    (Dollars In Thousands)                      
      Six Months Ended
      June 30, 2025   June 30, 2024
      Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate    		   Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate
    ASSETS                      
    Interest-bearing deposits $ 273,200     $ 4,264     3.12   %   $ 449,173     $ 9,488     4.22   %
    Federal Home Loan Bank stock   45,296       2,080     9.18         41,757       1,714     8.21    
    Investment Securities: (1)                      
    Taxable   1,620,005       16,638     2.05         1,785,903       17,799     1.99    
    Tax-exempt (2)   2,044,489       31,687     3.10         2,243,286       34,461     3.07    
    Total Investment Securities   3,664,494       48,325     2.64         4,029,189       52,260     2.59    
    Loans held for sale   23,190       708     6.11         25,184       759     6.03    
    Loans: (3)                      
    Commercial   8,889,119       301,880     6.79         8,644,927       320,057     7.40    
    Real estate mortgage   2,195,988       49,508     4.51         2,140,769       46,156     4.31    
    HELOC and installment   831,904       30,805     7.41         822,616       32,464     7.89    
    Tax-exempt (2)   1,137,087       27,009     4.75         915,302       21,038     4.60    
    Total Loans   13,077,288       409,910     6.27         12,548,798       420,474     6.70    
    Total Earning Assets   17,060,278       464,579     5.45   %     17,068,917       483,936     5.67   %
    Total Non-Earning Assets   1,365,445               1,312,423          
    TOTAL ASSETS $ 18,425,723             $ 18,381,340          
    LIABILITIES                      
    Interest-Bearing deposits:                      
    Interest-bearing deposits $ 5,533,858     $ 69,909     2.53   %   $ 5,503,185     $ 80,484     2.92   %
    Money market deposits   3,526,461       54,666     3.10         3,040,938       54,613     3.59    
    Savings deposits   1,291,133       4,958     0.77         1,534,305       7,277     0.95    
    Certificates and other time deposits   1,975,923       35,255     3.57         2,421,413       55,062     4.55    
    Total Interest-Bearing Deposits   12,327,375       164,788     2.67         12,499,841       197,436     3.16    
    Borrowings   1,256,688       24,181     3.85         948,866       19,211     4.05    
    Total Interest-Bearing Liabilities   13,584,063       188,969     2.78         13,448,707       216,647     3.22    
    Noninterest-bearing deposits   2,198,939               2,388,695          
    Other liabilities   302,281               321,188          
    Total Liabilities   16,085,283               16,158,590          
    STOCKHOLDERS’ EQUITY   2,340,440               2,222,750          
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,425,723             $ 18,381,340          
    Net Interest Income (FTE)     $ 275,610             $ 267,289      
    Net Interest Spread (FTE) (4)         2.67   %           2.45   %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.45   %           5.67   %
    Interest Expense / Average Earning Assets         2.22   %           2.54   %
    Net Interest Margin (FTE) (5)         3.23   %           3.13   %
                           
    (1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $12,326 and $11,655 for the six months ended June 30, 2025 and 2024, respectively.
    (3) Non accruing loans have been included in the average balances. 
    (4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.
     
    ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE – NON-GAAP
    (Dollars In Thousands, Except Per Share Amounts) Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Net Income Available to Common Stockholders – GAAP $ 56,363       $ 54,870       $ 63,880       $ 48,719       $ 39,456       $ 111,233       $ 86,928    
    Adjustments:                          
    Net realized losses on sales of available for sale securities   1         7         11,592         9,114         49         8         51    
    Gain on branch sale   —         —         (19,983 )       —         —         —         —    
    Non-core expenses1,2   —         —         762         —         —         —         3,481    
    Tax on adjustments   —         (2 )       1,851         (2,220 )       (12 )       (2 )       (860 )  
    Adjusted Net Income Available to Common Stockholders – Non-GAAP $ 56,364       $ 54,875       $ 58,102       $ 55,613       $ 39,493       $ 111,239       $ 89,600    
                               
    Average Diluted Common Shares Outstanding (in thousands)   57,773         58,242         58,247         58,289         58,328         58,005         58,800    
                               
    Diluted Earnings Per Common Share – GAAP $ 0.98       $ 0.94       $ 1.10       $ 0.84       $ 0.68       $ 1.92       $ 1.48    
    Adjustments:                          
    Net realized losses on sales of available for sale securities   —         —         0.20         0.15         —         —         —    
    Gain on branch sale   —         —         (0.34 )       —         —         —         —    
    Non-core expenses1,2   —         —         0.01         —         —         —         0.06    
    Tax on adjustments   —         —         0.03         (0.04 )       —         —         (0.01 )  
    Adjusted Diluted Earnings Per Common Share – Non-GAAP $ 0.98       $ 0.94       $ 1.00       $ 0.95       $ 0.68       $ 1.92       $ 1.53    
                               
    1 – Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
    2 – Non-core expenses in the Six Months Ended June 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
                               
                               
    NET INTEREST MARGIN (“NIM”), ADJUSTED
    (Dollars in Thousands)
      Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Net Interest Income (GAAP) $ 133,014       $ 130,270       $ 134,370       $ 131,110       $ 128,571       $ 263,284       $ 255,634    
    Fully Taxable Equivalent (“FTE”) Adjustment   6,199         6,127         5,788         5,883         5,859         12,326         11,655    
    Net Interest Income (FTE) (non-GAAP) $ 139,213       $ 136,397       $ 140,158       $ 136,993       $ 134,430       $ 275,610       $ 267,289    
                               
    Average Earning Assets (GAAP) $ 17,158,984       $ 16,960,475       $ 17,089,198       $ 16,990,358       $ 17,013,984       $ 17,060,278       $ 17,068,917    
    Net Interest Margin (GAAP)   3.10   %     3.07   %     3.15   %     3.09   %     3.02   %     3.09   %     3.00   %
    FTE Adjustment   0.15   %     0.15   %     0.13   %     0.14   %     0.14   %     0.14   %     0.13   %
    Net Interest Margin (FTE) (non-GAAP)   3.25   %     3.22   %     3.28   %     3.23   %     3.16   %     3.23   %     3.13   %
                               
    RETURN ON TANGIBLE COMMON EQUITY – NON-GAAP
    (Dollars In Thousands) Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Total Average Stockholders’ Equity (GAAP) $ 2,340,010       $ 2,340,874       $ 2,312,270       $ 2,251,547       $ 2,203,361       $ 2,340,440       $ 2,222,750    
    Less: Average Preferred Stock   (25,125 )       (25,125 )       (25,125 )       (25,125 )       (25,125 )       (25,125 )       (25,125 )  
    Less: Average Intangible Assets, Net of Tax   (725,813 )       (726,917 )       (728,218 )       (729,581 )       (730,980 )       (726,362 )       (731,706 )  
    Average Tangible Common Equity, Net of Tax (Non-GAAP) $ 1,589,072       $ 1,588,832       $ 1,558,927       $ 1,496,841       $ 1,447,256       $ 1,588,953       $ 1,465,919    
                               
    Net Income Available to Common Stockholders (GAAP) $ 56,363       $ 54,870       $ 63,880       $ 48,719       $ 39,456       $ 111,233       $ 86,928    
    Plus: Intangible Asset Amortization, Net of Tax   1,188         1,206         1,399         1,399         1,399         2,394         2,945    
    Tangible Net Income (Non-GAAP) $ 57,551       $ 56,076       $ 65,279       $ 50,118       $ 40,855       $ 113,627       $ 89,873    
                               
    Return on Tangible Common Equity (Non-GAAP)   14.49   %     14.12   %     16.75   %     13.39   %     11.29   %     14.30   %     12.26   %
                               
                               
    EFFICIENCY RATIO – NON-GAAP                          
    (Dollars In Thousands) Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Noninterest Expense (GAAP) $ 93,598       $ 92,902       $ 96,289       $ 94,629       $ 91,413       $ 186,500       $ 188,348    
    Less: Intangible Asset Amortization   (1,505 )       (1,526 )       (1,771 )       (1,772 )       (1,771 )       (3,031 )       (3,728 )  
    Less: OREO and Foreclosure Expenses   (29 )       (600 )       (227 )       (942 )       (373 )       (629 )       (907 )  
                                                                         
    Adjusted Noninterest Expense (Non-GAAP) $ 92,064       $ 90,776       $ 94,291       $ 91,915       $ 89,269       $ 182,840       $ 183,713    
                               
    Net Interest Income (GAAP) $ 133,014       $ 130,270       $ 134,370       $ 131,110       $ 128,571       $ 263,284       $ 255,634    
    Plus: Fully Taxable Equivalent Adjustment   6,199         6,127         5,788         5,883         5,859         12,326         11,655    
    Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP) $ 139,213       $ 136,397       $ 140,158       $ 136,993       $ 134,430       $ 275,610       $ 267,289    
                               
    Noninterest Income (GAAP) $ 31,303       $ 30,048       $ 42,742       $ 24,866       $ 31,334       $ 61,351       $ 57,972    
    Less: Investment Securities (Gains) Losses   1         7         11,592         9,114         49         8         51    
    Adjusted Noninterest Income (Non-GAAP) $ 31,304       $ 30,055       $ 54,334       $ 33,980       $ 31,383       $ 61,359       $ 58,023    
    Adjusted Revenue (Non-GAAP) $ 170,517       $ 166,452       $ 194,492       $ 170,973       $ 165,813       $ 336,969       $ 325,312    
    Efficiency Ratio (Non-GAAP)   53.99   %     54.54   %     48.48   %     53.76   %     53.84   %     54.26   %     56.47   %
                               
    Adjusted Noninterest Expense (Non-GAAP) $ 92,064       $ 90,776       $ 94,291       $ 91,915       $ 89,269       $ 182,840       $ 183,713    
    Less: Non-core Expenses1,2   —         —         (762 )       —         —         —         (3,481 )  
    Adjusted Noninterest Expense Excluding Non-core Expenses (Non-GAAP) $ 92,064       $ 90,776       $ 93,529       $ 91,915       $ 89,269       $ 182,840       $ 180,232    
                               
    Adjusted Revenue (Non-GAAP) $ 170,517       $ 166,452       $ 194,492       $ 170,973       $ 165,813       $ 336,969       $ 325,312    
    Less: Gain on Branch Sale   —         —         (19,983 )       —         —         —         —    
    Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP) $ 170,517       $ 166,452       $ 174,509       $ 170,973       $ 165,813       $ 336,969       $ 325,312    
                                                                         
    Adjusted Efficiency Ratio (Non-GAAP)   53.99   %     54.54   %     53.60   %     53.76   %     53.84   %     54.26   %     55.40   %
     
    1 – Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
    2 – Non-core expenses in the Six Months Ended June 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
                               


    For more information, contact:
    Nicole M. Weaver, First Vice President and Director of Corporate Administration
    765-521-7619
    http://www.firstmerchants.com

    SOURCE: First Merchants Corporation, Muncie, Indiana

    The MIL Network –

  • MIL-OSI: First Merchants Corporation Announces Second Quarter 2025 Earnings Per Share

    Source: GlobeNewswire (MIL-OSI)

    MUNCIE, Ind., July 23, 2025 (GLOBE NEWSWIRE) — First Merchants Corporation (NASDAQ – FRME)

    Second Quarter 2025 Highlights:

    • Net income available to common stockholders was $56.4 million and diluted earnings per common share totaled $0.98 in the second quarter of 2025, compared to $39.5 million and $0.68 in the second quarter of 2024, and $54.9 million and $0.94 in the first quarter of 2025.
    • Robust capital position with Common Equity Tier 1 Capital Ratio of 11.35%.
    • Repurchased 818,480 shares totaling $31.7 million year-to-date; Repurchased 582,486 shares totaling $22.1 million during the second quarter.
    • Total loans grew $297.6 million, or 9.1% annualized, on a linked quarter basis, and $653.6 million, or 5.2%, during the last twelve months.
    • Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis.
    • Nonperforming assets to total assets were 36 basis points compared to 47 basis points on a linked quarter basis.
    • The efficiency ratio totaled 53.99% for the quarter.

    “Our strong balance sheet and earnings growth in the first half of the year underscore the strength and resilience of our business model,” said Mark Hardwick, Chief Executive Officer of First Merchants Bank. “With continued momentum in loan and deposit growth, expanding margins, disciplined expense management, and a robust capital position, we are well-positioned to deliver long-term value for our shareholders. We remain committed to supporting our clients and communities while navigating a dynamic economic environment with confidence and clarity.”

    Second Quarter Financial Results:

    First Merchants Corporation (the “Corporation) reported second quarter 2025 net income available to common stockholders of $56.4 million compared to $39.5 million during the same period in 2024. Diluted earnings per common share for the period totaled $0.98 per share compared to the second quarter of 2024 result of $0.68 per share.

    Total assets equaled $18.6 billion as of quarter-end and loans totaled $13.3 billion. During the past twelve months, total loans grew by $653.6 million, or 5.2%. On a linked quarter basis, loans grew $297.6 million, or 9.1% with growth primarily in Commercial & Industrial loans.

    Investments, totaling $3.4 billion, decreased $372.1 million, or 9.9%, during the last twelve months and decreased $46.2 million, or 5.4% annualized, on a linked quarter basis. The decline in the last twelve months reflected sales of available for sale securities in 2024 totaling $268.5 million.

    Total deposits equaled $14.8 billion as of quarter-end and increased by $228.5 million, or 1.6%, over the past twelve months. Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis. The loan to deposit ratio of 90.1% at period end remained stable on a linked quarter basis.

    The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $195.3 million as of quarter-end, or 1.47% of total loans. Net charge-offs totaled $2.3 million and provision for credit losses of $5.6 million was recorded during the quarter. Reserves for unfunded commitments totaling $18.0 million remain unchanged from the previous quarter. Non-performing assets to total assets were 0.36% for the second quarter of 2025, a decrease of 11 basis points compared to 0.47% in the linked quarter.

    Net interest income, totaling $133.0 million for the quarter, increased $2.7 million, or 2.1%, compared to prior quarter and increased $4.4 million, or 3.5% compared to the second quarter of 2024. Fully taxable equivalent net interest margin was 3.25%, an increase of three basis points compared to the first quarter of 2025 and an increase of nine basis points compared to the second quarter of 2024. During the quarter, higher yields on earnings assets outpaced increased yields on interest bearing liabilities resulting in margin expansion.

    Noninterest income totaled $31.3 million for the quarter, an increase of $1.3 million, compared to the first quarter of 2025 and was stable compared to the second quarter of 2024. The increase over first quarter of 2025 was driven primarily by higher gains on the sales of loans, treasury management fees, derivative hedge fees, and card payment fees offset by a decrease in other income associated with CRA investments.

    Noninterest expense totaled $93.6 million for the quarter, an increase of $0.7 million from the first quarter of 2025. The increase was from higher marketing and data processing costs.

    The Corporation’s total risk-based capital ratio equaled 13.06%, the common equity tier 1 capital ratio equaled 11.35%, and the tangible common equity ratio totaled 8.92%. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

    CONFERENCE CALL

    First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 9:00 a.m. (ET) on Thursday, July 24, 2025.

    To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register-conf.media-server.com/register/BI605c2e360ce04cfc9c4221bda7f67a49)

    To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/ced58zg3) during the time of the call. A replay of the webcast will be available until July 24, 2026.

    Detailed financial results are reported on the attached pages.

    About First Merchants Corporation

    First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

    First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

    FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

    Forward-Looking Statements

    This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements include statements about First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statements, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.

     
    CONSOLIDATED BALANCE SHEETS
    (Dollars In Thousands) June 30,
        2025       2024  
    ASSETS      
    Cash and due from banks $ 81,567     $ 105,372  
    Interest-bearing deposits   223,343       168,528  
    Investment securities available for sale   1,358,130       1,618,893  
    Investment securities held to maturity, net of allowance for credit losses   2,022,826       2,134,195  
    Loans held for sale   28,783       32,292  
    Loans   13,296,759       12,639,650  
    Less: Allowance for credit losses – loans   (195,316 )     (189,537 )
    Net loans   13,101,443       12,450,113  
    Premises and equipment   122,808       133,245  
    Federal Home Loan Bank stock   47,290       41,738  
    Interest receivable   93,258       97,546  
    Goodwill   712,002       712,002  
    Other intangibles   16,797       23,371  
    Cash surrender value of life insurance   305,695       306,379  
    Other real estate owned   177       4,824  
    Tax asset, deferred and receivable   97,749       107,080  
    Other assets   380,909       367,845  
    TOTAL ASSETS $ 18,592,777     $ 18,303,423  
    LIABILITIES      
    Deposits:      
    Noninterest-bearing $ 2,197,416     $ 2,303,313  
    Interest-bearing   12,600,162       12,265,757  
    Total Deposits   14,797,578       14,569,070  
    Borrowings:      
    Federal funds purchased   85,000       147,229  
    Securities sold under repurchase agreements   114,758       100,451  
    Federal Home Loan Bank advances   898,702       832,703  
    Subordinated debentures and other borrowings   62,617       93,589  
    Total Borrowings   1,161,077       1,173,972  
    Interest payable   16,174       18,554  
    Other liabilities   269,996       329,302  
    Total Liabilities   16,244,825       16,090,898  
    STOCKHOLDERS’ EQUITY      
    Preferred Stock, $1,000 par value, $1,000 liquidation value:      
    Authorized — 600 cumulative shares      
    Issued and outstanding – 125 cumulative shares   125       125  
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:      
    Authorized — 10,000 non-cumulative perpetual shares      
    Issued and outstanding – 10,000 non-cumulative perpetual shares   25,000       25,000  
    Common Stock, $.125 stated value:      
    Authorized — 100,000,000 shares      
    Issued and outstanding – 57,272,433 and 58,045,653 shares   7,159       7,256  
    Additional paid-in capital   1,163,170       1,191,193  
    Retained earnings   1,342,473       1,200,930  
    Accumulated other comprehensive loss   (189,975 )     (211,979 )
    Total Stockholders’ Equity   2,347,952       2,212,525  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,592,777     $ 18,303,423  
           
    CONSOLIDATED STATEMENTS OF INCOME Three Months Ended   Six Months Ended
    (Dollars In Thousands, Except Per Share Amounts) June 30,   June 30,
        2025       2024       2025       2024  
    INTEREST INCOME              
    Loans:              
    Taxable $ 195,173     $ 201,413     $ 382,901     $ 399,436  
    Tax-exempt   10,805       8,430       21,337       16,620  
    Investment securities:              
    Taxable   8,266       9,051       16,638       17,799  
    Tax-exempt   12,516       13,613       25,033       27,224  
    Deposits with financial institutions   1,892       2,995       4,264       9,488  
    Federal Home Loan Bank stock   1,083       879       2,080       1,714  
    Total Interest Income   229,735       236,381       452,253       472,281  
    INTEREST EXPENSE              
    Deposits   84,241       99,151       164,788       197,436  
    Federal funds purchased   965       126       1,777       126  
    Securities sold under repurchase agreements   663       645       1,405       1,677  
    Federal Home Loan Bank advances   9,714       6,398       19,078       13,171  
    Subordinated debentures and other borrowings   1,138       1,490       1,921       4,237  
    Total Interest Expense   96,721       107,810       188,969       216,647  
    NET INTEREST INCOME   133,014       128,571       263,284       255,634  
    Provision for credit losses   5,600       24,500       9,800       26,500  
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   127,414       104,071       253,484       229,134  
    NONINTEREST INCOME              
    Service charges on deposit accounts   8,566       8,214       16,638       16,121  
    Fiduciary and wealth management fees   8,831       8,825       17,475       17,025  
    Card payment fees   4,932       4,739       9,458       9,239  
    Net gains and fees on sales of loans   5,849       5,141       10,871       8,395  
    Derivative hedge fees   831       489       1,235       752  
    Other customer fees   401       460       816       887  
    Earnings on cash surrender value of life insurance   1,913       1,929       4,092       3,521  
    Net realized losses on sales of available for sale securities   (1 )     (49 )     (8 )     (51 )
    Other income (loss)   (19 )     1,586       774       2,083  
    Total Noninterest Income   31,303       31,334       61,351       57,972  
    NONINTEREST EXPENSES              
    Salaries and employee benefits   54,527       52,214       109,509       110,507  
    Net occupancy   6,845       6,746       14,061       14,058  
    Equipment   6,927       6,599       13,935       12,825  
    Marketing   1,997       1,773       3,350       2,971  
    Outside data processing fees   7,107       7,072       13,036       13,961  
    Printing and office supplies   272       354       619       707  
    Intangible asset amortization   1,505       1,771       3,031       3,728  
    FDIC assessments   3,552       3,278       7,200       7,565  
    Other real estate owned and foreclosure expenses   29       373       629       907  
    Professional and other outside services   3,741       3,822       7,002       7,774  
    Other expenses   7,096       7,411       14,128       13,345  
    Total Noninterest Expenses   93,598       91,413       186,500       188,348  
    INCOME BEFORE INCOME TAX   65,119       43,992       128,335       98,758  
    Income tax expense   8,287       4,067       16,164       10,892  
    NET INCOME   56,832       39,925       112,171       87,866  
    Preferred stock dividends   469       469       938       938  
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 56,363     $ 39,456     $ 111,233     $ 86,928  
                   
                   
    PER SHARE DATA:              
    Basic Net Income Available to Common Stockholders $ 0.98     $ 0.68     $ 1.93     $ 1.48  
    Diluted Net Income Available to Common Stockholders $ 0.98     $ 0.68     $ 1.92     $ 1.48  
    Cash Dividends Paid to Common Stockholders $ 0.36     $ 0.35     $ 0.71     $ 0.69  
    Tangible Common Book Value Per Share $ 27.90     $ 25.10     $ 27.90     $ 25.10  
    Average Diluted Common Shares Outstanding (in thousands)   57,773       58,328       58,005       58,800  
                                   
    FINANCIAL HIGHLIGHTS              
    (Dollars In Thousands) Three Months Ended   Six Months Ended
      June 30,   June 30,
       2025    2024    2025    2024
    NET CHARGE-OFFS $ 2,315       $ 39,644       $ 7,241       $ 41,897    
                   
    AVERAGE BALANCES:              
    Total Assets $ 18,508,785       $ 18,332,159       $ 18,425,723       $ 18,381,340    
    Total Loans   13,211,729         12,620,530         13,077,288         12,548,798    
    Total Earning Assets   17,158,984         17,013,984         17,060,278         17,068,917    
    Total Deposits   14,632,113         14,895,867         14,526,314         14,888,536    
    Total Stockholders’ Equity   2,340,010         2,203,361         2,340,440         2,222,750    
                   
    FINANCIAL RATIOS:              
    Return on Average Assets   1.23   %     0.87   %     1.22   %     0.96   %
    Return on Average Stockholders’ Equity   9.63         7.16         9.51         7.82    
    Return on Tangible Common Stockholders’ Equity   14.49         11.29         14.30         12.26    
    Average Earning Assets to Average Assets   92.71         92.81         92.59         92.86    
    Allowance for Credit Losses – Loans as % of Total Loans   1.47         1.50         1.47         1.50    
    Net Charge-offs as % of Average Loans (Annualized)   0.07         1.26         0.11         0.67    
    Average Stockholders’ Equity to Average Assets   12.64         12.02         12.70         12.09    
    Tax Equivalent Yield on Average Earning Assets   5.50         5.69         5.45         5.67    
    Interest Expense/Average Earning Assets   2.25         2.53         2.22         2.54    
    Net Interest Margin (FTE) on Average Earning Assets   3.25         3.16         3.23         3.13    
    Efficiency Ratio   53.99         53.84         54.26         56.47    
                   
    ASSET QUALITY                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
       2025    2025    2024    2024    2024
    Nonaccrual Loans $ 67,358       $ 81,922       $ 73,773       $ 59,088       $ 61,906    
    Other Real Estate Owned and Repossessions   177         4,966         4,948         5,247         4,824    
    Nonperforming Assets (NPA)   67,535         86,888         78,721         64,335         66,730    
    90+ Days Delinquent   4,443         4,280         5,902         14,105         1,686    
    NPAs & 90 Day Delinquent $ 71,978       $ 91,168       $ 84,623       $ 78,440       $ 68,416    
                       
    Allowance for Credit Losses – Loans $ 195,316       $ 192,031       $ 192,757       $ 187,828       $ 189,537    
    Quarterly Net Charge-offs   2,315         4,926         771         6,709         39,644    
    NPAs / Actual Assets %   0.36   %     0.47   %     0.43   %     0.35   %     0.36   %
    NPAs & 90 Day / Actual Assets %   0.39   %     0.49   %     0.46   %     0.43   %     0.37   %
    NPAs / Actual Loans and OREO %   0.51   %     0.67   %     0.61   %     0.51   %     0.53   %
    Allowance for Credit Losses – Loans / Actual Loans (%)   1.47   %     1.47   %     1.50   %     1.48   %     1.50   %
    Quarterly Net Charge-offs as % of Average Loans (Annualized)   0.07   %     0.15   %     0.02   %     0.21   %     1.26   %
    CONSOLIDATED BALANCE SHEETS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
        2025       2025       2024       2024       2024  
    ASSETS                  
    Cash and due from banks $ 81,567     $ 86,113     $ 87,616     $ 84,719     $ 105,372  
    Interest-bearing deposits   223,343       331,534       298,891       359,126       168,528  
    Investment securities available for sale   1,358,130       1,378,489       1,386,475       1,553,496       1,618,893  
    Investment securities held to maturity, net of allowance for credit losses   2,022,826       2,048,632       2,074,220       2,108,649       2,134,195  
    Loans held for sale   28,783       23,004       18,663       40,652       32,292  
    Loans   13,296,759       13,004,905       12,854,359       12,646,808       12,639,650  
    Less: Allowance for credit losses – loans   (195,316 )     (192,031 )     (192,757 )     (187,828 )     (189,537 )
    Net loans   13,101,443       12,812,874       12,661,602       12,458,980       12,450,113  
    Premises and equipment   122,808       128,749       129,743       129,582       133,245  
    Federal Home Loan Bank stock   47,290       45,006       41,690       41,716       41,738  
    Interest receivable   93,258       88,352       91,829       92,055       97,546  
    Goodwill   712,002       712,002       712,002       712,002       712,002  
    Other intangibles   16,797       18,302       19,828       21,599       23,371  
    Cash surrender value of life insurance   305,695       304,918       304,906       304,613       306,379  
    Other real estate owned   177       4,966       4,948       5,247       4,824  
    Tax asset, deferred and receivable   97,749       87,665       92,387       86,732       107,080  
    Other assets   380,909       369,181       387,169       348,384       367,845  
    TOTAL ASSETS $ 18,592,777     $ 18,439,787     $ 18,311,969     $ 18,347,552     $ 18,303,423  
    LIABILITIES                  
    Deposits:                  
    Noninterest-bearing $ 2,197,416     $ 2,185,057     $ 2,325,579     $ 2,334,197     $ 2,303,313  
    Interest-bearing   12,600,162       12,276,921       12,196,047       12,030,903       12,265,757  
    Total Deposits   14,797,578       14,461,978       14,521,626       14,365,100       14,569,070  
    Borrowings:                  
    Federal funds purchased   85,000       185,000       99,226       30,000       147,229  
    Securities sold under repurchase agreements   114,758       122,947       142,876       124,894       100,451  
    Federal Home Loan Bank advances   898,702       972,478       822,554       832,629       832,703  
    Subordinated debentures and other borrowings   62,617       62,619       93,529       93,562       93,589  
    Total Borrowings   1,161,077       1,343,044       1,158,185       1,081,085       1,173,972  
    Deposits and other liabilities held for sale   —       —       —       288,476       —  
    Interest payable   16,174       13,304       16,102       18,089       18,554  
    Other liabilities   269,996       289,247       311,073       292,429       329,302  
    Total Liabilities   16,244,825       16,107,573       16,006,986       16,045,179       16,090,898  
    STOCKHOLDERS’ EQUITY                  
    Preferred Stock, $1,000 par value, $1,000 liquidation value:                  
    Authorized — 600 cumulative shares                  
    Issued and outstanding – 125 cumulative shares   125       125       125       125       125  
    Preferred Stock, Series A, no par value, $2,500 liquidation preference:                  
    Authorized — 10,000 non-cumulative perpetual shares                  
    Issued and outstanding – 10,000 non-cumulative perpetual shares   25,000       25,000       25,000       25,000       25,000  
    Common Stock, $.125 stated value:                  
    Authorized — 100,000,000 shares                  
    Issued and outstanding   7,159       7,226       7,247       7,265       7,256  
    Additional paid-in capital   1,163,170       1,183,263       1,188,768       1,192,683       1,191,193  
    Retained earnings   1,342,473       1,306,911       1,272,528       1,229,125       1,200,930  
    Accumulated other comprehensive loss   (189,975 )     (190,311 )     (188,685 )     (151,825 )     (211,979 )
    Total Stockholders’ Equity   2,347,952       2,332,214       2,304,983       2,302,373       2,212,525  
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,592,777     $ 18,439,787     $ 18,311,969     $ 18,347,552     $ 18,303,423  
                       
    CONSOLIDATED STATEMENTS OF INCOME                  
    (Dollars In Thousands, Except Per Share Amounts) June 30,   March 31,   December 31,   September 30,   June 30,
       2025    2025    2024    2024    2024
    INTEREST INCOME                  
    Loans:                  
    Taxable $ 195,173       $ 187,728       $ 197,536       $ 206,680       $ 201,413    
    Tax-exempt   10,805         10,532         9,020         8,622         8,430    
    Investment securities:                  
    Taxable   8,266         8,372         9,024         9,263         9,051    
    Tax-exempt   12,516         12,517         12,754         13,509         13,613    
    Deposits with financial institutions   1,892         2,372         5,350         2,154         2,995    
    Federal Home Loan Bank stock   1,083         997         958         855         879    
    Total Interest Income   229,735         222,518         234,642         241,083         236,381    
    INTEREST EXPENSE                  
    Deposits   84,241         80,547         89,835         98,856         99,151    
    Federal funds purchased   965         812         26         329         126    
    Securities sold under repurchase agreements   663         742         680         700         645    
    Federal Home Loan Bank advances   9,714         9,364         8,171         8,544         6,398    
    Subordinated debentures and other borrowings   1,138         783         1,560         1,544         1,490    
    Total Interest Expense   96,721         92,248         100,272         109,973         107,810    
    NET INTEREST INCOME   133,014         130,270         134,370         131,110         128,571    
    Provision for credit losses   5,600         4,200         4,200         5,000         24,500    
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   127,414         126,070         130,170         126,110         104,071    
    NONINTEREST INCOME                  
    Service charges on deposit accounts   8,566         8,072         8,124         8,361         8,214    
    Fiduciary and wealth management fees   8,831         8,644         8,665         8,525         8,825    
    Card payment fees   4,932         4,526         4,957         5,121         4,739    
    Net gains and fees on sales of loans   5,849         5,022         5,681         6,764         5,141    
    Derivative hedge fees   831         404         1,594         736         489    
    Other customer fees   401         415         316         344         460    
    Earnings on cash surrender value of life insurance   1,913         2,179         2,188         2,755         1,929    
    Net realized losses on sales of available for sale securities   (1 )       (7 )       (11,592 )       (9,114 )       (49 )  
    Gain on branch sale   —         —         19,983         —         —    
    Other income (loss)   (19 )       793         2,826         1,374         1,586    
    Total Noninterest Income   31,303         30,048         42,742         24,866         31,334    
    NONINTEREST EXPENSES                  
    Salaries and employee benefits   54,527         54,982         55,437         55,223         52,214    
    Net occupancy   6,845         7,216         7,335         6,994         6,746    
    Equipment   6,927         7,008         7,028         6,949         6,599    
    Marketing   1,997         1,353         2,582         1,836         1,773    
    Outside data processing fees   7,107         5,929         6,029         7,150         7,072    
    Printing and office supplies   272         347         377         378         354    
    Intangible asset amortization   1,505         1,526         1,771         1,772         1,771    
    FDIC assessments   3,552         3,648         3,744         3,720         3,278    
    Other real estate owned and foreclosure expenses   29         600         227         942         373    
    Professional and other outside services   3,741         3,261         3,777         3,035         3,822    
    Other expenses   7,096         7,032         7,982         6,630         7,411    
    Total Noninterest Expenses   93,598         92,902         96,289         94,629         91,413    
    INCOME BEFORE INCOME TAX   65,119         63,216         76,623         56,347         43,992    
    Income tax expense   8,287         7,877         12,274         7,160         4,067    
    NET INCOME   56,832         55,339         64,349         49,187         39,925    
    Preferred stock dividends   469         469         469         468         469    
    NET INCOME AVAILABLE TO COMMON STOCKHOLDERS $ 56,363       $ 54,870       $ 63,880       $ 48,719       $ 39,456    
                       
                       
    PER SHARE DATA:                  
    Basic Net Income Available to Common Stockholders $ 0.98       $ 0.95       $ 1.10       $ 0.84       $ 0.68    
    Diluted Net Income Available to Common Stockholders $ 0.98       $ 0.94       $ 1.10       $ 0.84       $ 0.68    
    Cash Dividends Paid to Common Stockholders $ 0.36       $ 0.35       $ 0.35       $ 0.35       $ 0.35    
    Tangible Common Book Value Per Share $ 27.90       $ 27.34       $ 26.78       $ 26.64       $ 25.10    
    Average Diluted Common Shares Outstanding (in thousands)   57,773         58,242         58,247         58,289         58,328    
    FINANCIAL RATIOS:                  
    Return on Average Assets   1.23   %     1.21   %     1.39   %     1.07   %     0.87   %
    Return on Average Stockholders’ Equity   9.63         9.38         11.05         8.66         7.16    
    Return on Tangible Common Stockholders’ Equity   14.49         14.12         16.75         13.39         11.29    
    Average Earning Assets to Average Assets   92.71         92.47         92.48         92.54         92.81    
    Allowance for Credit Losses – Loans as % of Total Loans   1.47         1.47         1.50         1.48         1.50    
    Net Charge-offs as % of Average Loans (Annualized)   0.07         0.15         0.02         0.21         1.26    
    Average Stockholders’ Equity to Average Assets   12.64         12.76         12.51         12.26         12.02    
    Tax Equivalent Yield on Average Earning Assets   5.50         5.39         5.63         5.82         5.69    
    Interest Expense/Average Earning Assets   2.25         2.17         2.35         2.59         2.53    
    Net Interest Margin (FTE) on Average Earning Assets   3.25         3.22         3.28         3.23         3.16    
    Efficiency Ratio   53.99         54.54         48.48         53.76         53.84    
    LOANS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
        2025       2025       2024       2024       2024  
    Commercial and industrial loans $ 4,440,924     $ 4,306,597     $ 4,114,292     $ 4,041,217     $ 3,949,817  
    Agricultural land, production and other loans to farmers   265,172       243,864       256,312       238,743       239,926  
    Real estate loans:                  
    Construction   836,033       793,175       792,144       814,704       823,267  
    Commercial real estate, non-owner occupied   2,171,092       2,177,869       2,274,016       2,251,351       2,323,533  
    Commercial real estate, owner occupied   1,226,797       1,214,739       1,157,944       1,152,751       1,174,195  
    Residential   2,397,094       2,389,852       2,374,729       2,366,943       2,370,905  
    Home equity   673,961       650,499       659,811       641,188       631,104  
    Individuals’ loans for household and other personal expenditures   141,045       140,954       166,028       158,480       162,089  
    Public finance and other commercial loans   1,144,641       1,087,356       1,059,083       981,431       964,814  
    Loans   13,296,759       13,004,905       12,854,359       12,646,808       12,639,650  
    Allowance for credit losses – loans   (195,316 )     (192,031 )     (192,757 )     (187,828 )     (189,537 )
    NET LOANS $ 13,101,443     $ 12,812,874     $ 12,661,602     $ 12,458,980     $ 12,450,113  
                       
                       
    DEPOSITS                  
    (Dollars In Thousands) June 30,   March 31,   December 31,   September 30,   June 30,
        2025       2025       2024       2024       2024  
    Demand deposits $ 7,798,695     $ 7,786,554     $ 7,980,061     $ 7,678,510     $ 7,757,679  
    Savings deposits   4,984,659       4,791,874       4,522,758       4,302,236       4,339,161  
    Certificates and other time deposits of $100,000 or less   617,857       625,203       692,068       802,949       889,949  
    Certificates and other time deposits of $100,000 or more   891,139       896,143       1,043,068       1,277,833       1,415,131  
    Brokered certificates of deposits1   505,228       362,204       283,671       303,572       167,150  
    TOTAL DEPOSITS $ 14,797,578     $ 14,461,978     $ 14,521,626     $ 14,365,100     $ 14,569,070  
                       
    1 – Total brokered deposits of $1.2 billion, which includes brokered CD’s of $505.2 million at June 30, 2025.
                       
    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
    (Dollars In Thousands)                      
      Three Months Ended
      June 30, 2025   June 30, 2024
      Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate     		   Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate
    ASSETS                      
    Interest-bearing deposits $ 252,613     $ 1,892     3.00   %   $ 322,647     $ 2,995     3.71   %
    Federal Home Loan Bank stock   46,598       1,083     9.30         41,749       879     8.42    
    Investment Securities: (1)                      
    Taxable   1,605,718       8,266     2.06         1,788,749       9,051     2.02    
    Tax-exempt (2)   2,042,326       15,843     3.10         2,240,309       17,232     3.08    
    Total Investment Securities   3,648,044       24,109     2.64         4,029,058       26,283     2.61    
    Loans held for sale   25,411       389     6.12         28,585       431     6.03    
    Loans: (3)                      
    Commercial   9,006,650       154,108     6.84         8,691,746       160,848     7.40    
    Real estate mortgage   2,200,521       25,062     4.56         2,150,591       23,799     4.43    
    HELOC and installment   834,901       15,614     7.48         823,417       16,335     7.94    
    Tax-exempt (2)   1,144,246       13,677     4.78         926,191       10,670     4.61    
    Total Loans   13,211,729       208,850     6.32         12,620,530       212,083     6.72    
    Total Earning Assets   17,158,984       235,934     5.50   %     17,013,984       242,240     5.69   %
    Total Non-Earning Assets   1,349,801               1,318,175          
    TOTAL ASSETS $ 18,508,785             $ 18,332,159          
    LIABILITIES                      
    Interest-Bearing Deposits:                      
    Interest-bearing deposits $ 5,545,158     $ 35,303     2.55   %   $ 5,586,549     $ 40,994     2.94   %
    Money market deposits   3,613,952       28,714     3.18         3,036,398       27,230     3.59    
    Savings deposits   1,282,951       2,513     0.78         1,508,734       3,476     0.92    
    Certificates and other time deposits   2,003,682       17,711     3.54         2,414,967       27,451     4.55    
    Total Interest-Bearing Deposits   12,445,743       84,241     2.71         12,546,648       99,151     3.16    
    Borrowings   1,250,519       12,480     3.99         885,919       8,659     3.91    
    Total Interest-Bearing Liabilities   13,696,262       96,721     2.82         13,432,567       107,810     3.21    
    Noninterest-bearing deposits   2,186,370               2,349,219          
    Other liabilities   286,143               347,012          
    Total Liabilities   16,168,775               16,128,798          
    STOCKHOLDERS’ EQUITY   2,340,010               2,203,361          
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,508,785             $ 18,332,159          
    Net Interest Income (FTE)     $ 139,213             $ 134,430      
    Net Interest Spread (FTE) (4)         2.68   %           2.48   %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.50   %           5.69   %
    Interest Expense / Average Earning Assets         2.25   %           2.53   %
    Net Interest Margin (FTE) (5)         3.25   %           3.16   %
                           
    (1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $6,199 and $5,859 for the three months ended June 30, 2025 and 2024, respectively.
    (3) Non accruing loans have been included in the average balances.
    (4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.
     
    CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
    (Dollars In Thousands)                      
      Six Months Ended
      June 30, 2025   June 30, 2024
      Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate    		   Average
    Balance    		   Interest
    Income /
    Expense    		   Average
    Rate
    ASSETS                      
    Interest-bearing deposits $ 273,200     $ 4,264     3.12   %   $ 449,173     $ 9,488     4.22   %
    Federal Home Loan Bank stock   45,296       2,080     9.18         41,757       1,714     8.21    
    Investment Securities: (1)                      
    Taxable   1,620,005       16,638     2.05         1,785,903       17,799     1.99    
    Tax-exempt (2)   2,044,489       31,687     3.10         2,243,286       34,461     3.07    
    Total Investment Securities   3,664,494       48,325     2.64         4,029,189       52,260     2.59    
    Loans held for sale   23,190       708     6.11         25,184       759     6.03    
    Loans: (3)                      
    Commercial   8,889,119       301,880     6.79         8,644,927       320,057     7.40    
    Real estate mortgage   2,195,988       49,508     4.51         2,140,769       46,156     4.31    
    HELOC and installment   831,904       30,805     7.41         822,616       32,464     7.89    
    Tax-exempt (2)   1,137,087       27,009     4.75         915,302       21,038     4.60    
    Total Loans   13,077,288       409,910     6.27         12,548,798       420,474     6.70    
    Total Earning Assets   17,060,278       464,579     5.45   %     17,068,917       483,936     5.67   %
    Total Non-Earning Assets   1,365,445               1,312,423          
    TOTAL ASSETS $ 18,425,723             $ 18,381,340          
    LIABILITIES                      
    Interest-Bearing deposits:                      
    Interest-bearing deposits $ 5,533,858     $ 69,909     2.53   %   $ 5,503,185     $ 80,484     2.92   %
    Money market deposits   3,526,461       54,666     3.10         3,040,938       54,613     3.59    
    Savings deposits   1,291,133       4,958     0.77         1,534,305       7,277     0.95    
    Certificates and other time deposits   1,975,923       35,255     3.57         2,421,413       55,062     4.55    
    Total Interest-Bearing Deposits   12,327,375       164,788     2.67         12,499,841       197,436     3.16    
    Borrowings   1,256,688       24,181     3.85         948,866       19,211     4.05    
    Total Interest-Bearing Liabilities   13,584,063       188,969     2.78         13,448,707       216,647     3.22    
    Noninterest-bearing deposits   2,198,939               2,388,695          
    Other liabilities   302,281               321,188          
    Total Liabilities   16,085,283               16,158,590          
    STOCKHOLDERS’ EQUITY   2,340,440               2,222,750          
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,425,723             $ 18,381,340          
    Net Interest Income (FTE)     $ 275,610             $ 267,289      
    Net Interest Spread (FTE) (4)         2.67   %           2.45   %
                           
    Net Interest Margin (FTE):                      
    Interest Income (FTE) / Average Earning Assets         5.45   %           5.67   %
    Interest Expense / Average Earning Assets         2.22   %           2.54   %
    Net Interest Margin (FTE) (5)         3.23   %           3.13   %
                           
    (1) Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
    (2) Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $12,326 and $11,655 for the six months ended June 30, 2025 and 2024, respectively.
    (3) Non accruing loans have been included in the average balances. 
    (4) Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
    (5) Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.
     
    ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE – NON-GAAP
    (Dollars In Thousands, Except Per Share Amounts) Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Net Income Available to Common Stockholders – GAAP $ 56,363       $ 54,870       $ 63,880       $ 48,719       $ 39,456       $ 111,233       $ 86,928    
    Adjustments:                          
    Net realized losses on sales of available for sale securities   1         7         11,592         9,114         49         8         51    
    Gain on branch sale   —         —         (19,983 )       —         —         —         —    
    Non-core expenses1,2   —         —         762         —         —         —         3,481    
    Tax on adjustments   —         (2 )       1,851         (2,220 )       (12 )       (2 )       (860 )  
    Adjusted Net Income Available to Common Stockholders – Non-GAAP $ 56,364       $ 54,875       $ 58,102       $ 55,613       $ 39,493       $ 111,239       $ 89,600    
                               
    Average Diluted Common Shares Outstanding (in thousands)   57,773         58,242         58,247         58,289         58,328         58,005         58,800    
                               
    Diluted Earnings Per Common Share – GAAP $ 0.98       $ 0.94       $ 1.10       $ 0.84       $ 0.68       $ 1.92       $ 1.48    
    Adjustments:                          
    Net realized losses on sales of available for sale securities   —         —         0.20         0.15         —         —         —    
    Gain on branch sale   —         —         (0.34 )       —         —         —         —    
    Non-core expenses1,2   —         —         0.01         —         —         —         0.06    
    Tax on adjustments   —         —         0.03         (0.04 )       —         —         (0.01 )  
    Adjusted Diluted Earnings Per Common Share – Non-GAAP $ 0.98       $ 0.94       $ 1.00       $ 0.95       $ 0.68       $ 1.92       $ 1.53    
                               
    1 – Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
    2 – Non-core expenses in the Six Months Ended June 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
                               
                               
    NET INTEREST MARGIN (“NIM”), ADJUSTED
    (Dollars in Thousands)
      Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Net Interest Income (GAAP) $ 133,014       $ 130,270       $ 134,370       $ 131,110       $ 128,571       $ 263,284       $ 255,634    
    Fully Taxable Equivalent (“FTE”) Adjustment   6,199         6,127         5,788         5,883         5,859         12,326         11,655    
    Net Interest Income (FTE) (non-GAAP) $ 139,213       $ 136,397       $ 140,158       $ 136,993       $ 134,430       $ 275,610       $ 267,289    
                               
    Average Earning Assets (GAAP) $ 17,158,984       $ 16,960,475       $ 17,089,198       $ 16,990,358       $ 17,013,984       $ 17,060,278       $ 17,068,917    
    Net Interest Margin (GAAP)   3.10   %     3.07   %     3.15   %     3.09   %     3.02   %     3.09   %     3.00   %
    FTE Adjustment   0.15   %     0.15   %     0.13   %     0.14   %     0.14   %     0.14   %     0.13   %
    Net Interest Margin (FTE) (non-GAAP)   3.25   %     3.22   %     3.28   %     3.23   %     3.16   %     3.23   %     3.13   %
                               
    RETURN ON TANGIBLE COMMON EQUITY – NON-GAAP
    (Dollars In Thousands) Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Total Average Stockholders’ Equity (GAAP) $ 2,340,010       $ 2,340,874       $ 2,312,270       $ 2,251,547       $ 2,203,361       $ 2,340,440       $ 2,222,750    
    Less: Average Preferred Stock   (25,125 )       (25,125 )       (25,125 )       (25,125 )       (25,125 )       (25,125 )       (25,125 )  
    Less: Average Intangible Assets, Net of Tax   (725,813 )       (726,917 )       (728,218 )       (729,581 )       (730,980 )       (726,362 )       (731,706 )  
    Average Tangible Common Equity, Net of Tax (Non-GAAP) $ 1,589,072       $ 1,588,832       $ 1,558,927       $ 1,496,841       $ 1,447,256       $ 1,588,953       $ 1,465,919    
                               
    Net Income Available to Common Stockholders (GAAP) $ 56,363       $ 54,870       $ 63,880       $ 48,719       $ 39,456       $ 111,233       $ 86,928    
    Plus: Intangible Asset Amortization, Net of Tax   1,188         1,206         1,399         1,399         1,399         2,394         2,945    
    Tangible Net Income (Non-GAAP) $ 57,551       $ 56,076       $ 65,279       $ 50,118       $ 40,855       $ 113,627       $ 89,873    
                               
    Return on Tangible Common Equity (Non-GAAP)   14.49   %     14.12   %     16.75   %     13.39   %     11.29   %     14.30   %     12.26   %
                               
                               
    EFFICIENCY RATIO – NON-GAAP                          
    (Dollars In Thousands) Three Months Ended   Six Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,   June 30,   June 30,
       2025    2025    2024    2024    2024    2025    2024
    Noninterest Expense (GAAP) $ 93,598       $ 92,902       $ 96,289       $ 94,629       $ 91,413       $ 186,500       $ 188,348    
    Less: Intangible Asset Amortization   (1,505 )       (1,526 )       (1,771 )       (1,772 )       (1,771 )       (3,031 )       (3,728 )  
    Less: OREO and Foreclosure Expenses   (29 )       (600 )       (227 )       (942 )       (373 )       (629 )       (907 )  
                                                                         
    Adjusted Noninterest Expense (Non-GAAP) $ 92,064       $ 90,776       $ 94,291       $ 91,915       $ 89,269       $ 182,840       $ 183,713    
                               
    Net Interest Income (GAAP) $ 133,014       $ 130,270       $ 134,370       $ 131,110       $ 128,571       $ 263,284       $ 255,634    
    Plus: Fully Taxable Equivalent Adjustment   6,199         6,127         5,788         5,883         5,859         12,326         11,655    
    Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP) $ 139,213       $ 136,397       $ 140,158       $ 136,993       $ 134,430       $ 275,610       $ 267,289    
                               
    Noninterest Income (GAAP) $ 31,303       $ 30,048       $ 42,742       $ 24,866       $ 31,334       $ 61,351       $ 57,972    
    Less: Investment Securities (Gains) Losses   1         7         11,592         9,114         49         8         51    
    Adjusted Noninterest Income (Non-GAAP) $ 31,304       $ 30,055       $ 54,334       $ 33,980       $ 31,383       $ 61,359       $ 58,023    
    Adjusted Revenue (Non-GAAP) $ 170,517       $ 166,452       $ 194,492       $ 170,973       $ 165,813       $ 336,969       $ 325,312    
    Efficiency Ratio (Non-GAAP)   53.99   %     54.54   %     48.48   %     53.76   %     53.84   %     54.26   %     56.47   %
                               
    Adjusted Noninterest Expense (Non-GAAP) $ 92,064       $ 90,776       $ 94,291       $ 91,915       $ 89,269       $ 182,840       $ 183,713    
    Less: Non-core Expenses1,2   —         —         (762 )       —         —         —         (3,481 )  
    Adjusted Noninterest Expense Excluding Non-core Expenses (Non-GAAP) $ 92,064       $ 90,776       $ 93,529       $ 91,915       $ 89,269       $ 182,840       $ 180,232    
                               
    Adjusted Revenue (Non-GAAP) $ 170,517       $ 166,452       $ 194,492       $ 170,973       $ 165,813       $ 336,969       $ 325,312    
    Less: Gain on Branch Sale   —         —         (19,983 )       —         —         —         —    
    Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP) $ 170,517       $ 166,452       $ 174,509       $ 170,973       $ 165,813       $ 336,969       $ 325,312    
                                                                         
    Adjusted Efficiency Ratio (Non-GAAP)   53.99   %     54.54   %     53.60   %     53.76   %     53.84   %     54.26   %     55.40   %
     
    1 – Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
    2 – Non-core expenses in the Six Months Ended June 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.
                               


    For more information, contact:
    Nicole M. Weaver, First Vice President and Director of Corporate Administration
    765-521-7619
    http://www.firstmerchants.com

    SOURCE: First Merchants Corporation, Muncie, Indiana

    The MIL Network –

  • MIL-OSI USA News: Fact Sheet: President Donald J. Trump Secures Unprecedented U.S.–Japan Strategic Trade and Investment Agreement

    Source: US Whitehouse

    A HISTORIC TRADE AND INVESTMENT AGREEMENT WITH JAPAN: Yesterday, President Donald J. Trump announced a landmark economic agreement with Japan—one of America’s closest allies and most important trading partners.

    • This historic deal reflects the strength of the U.S.–Japan relationship and Japan’s recognition of the United States as the most attractive and secure destination for strategic investment in the world.
    • The agreement reaffirms the shared commitment of both nations to economic prosperity, industrial leadership, and long-term security. It delivers a powerful signal that the U.S.–Japan alliance is not only a cornerstone of peace in the Indo-Pacific, but also a driver of global growth and innovation.
    • With over $550 billion in a new Japanese/USA investment vehicle and enhanced access for American exports, this agreement marks a new chapter in bilateral cooperation—one that will unleash the full potential of the U.S. economy, strengthen vital supply chains, and support American workers, communities, and businesses for decades to come.

    RESTORING AMERICAN INDUSTRIAL POWER: Japan will invest $550 billion directed by the United States to rebuild and expand core American industries.

    • This is the single largest foreign investment commitment ever secured by any country and will generate hundreds of thousands of U.S. jobs, expand domestic manufacturing, and secure American prosperity for generations.
    • At President Trump’s direction, these funds will be targeted toward the revitalization of America’s strategic industrial base, including:
      • Energy infrastructure and production, including LNG, advanced fuels, and grid modernization;
      • Semiconductor manufacturing and research, rebuilding U.S. capacity from design to fabrication;
      • Critical minerals mining, processing, and refining, ensuring access to essential inputs;
      • Pharmaceutical and medical production, ending U.S. dependence on foreign-made medicines and supplies;
      • Commercial and defense shipbuilding, including new yards and modernization of existing facilities.
    • The United States will retain 90% of the profits from this investment—ensuring that American workers, taxpayers, and communities reap the overwhelming share of the benefit.
    • This capital surge, combined with the trillions already secured under President Trump’s leadership, will be a key component of a once-in-a-century industrial revival.

    ENSURING BALANCED TRADE THROUGH A PREDICTABLE TARIFF FRAMEWORK: As part of this agreement, imports from Japan will be subject to a baseline 15% tariff rate.

    • In addition to raising billions in revenue, this new tariff framework, combined with expanded U.S. exports and investment-driven production, will help narrow the trade deficit with Japan and restore greater balance to the overall U.S. trade position.
    • This approach reflects the United States’ broader effort to establish a consistent, transparent, and enforceable trade environment—one in which American workers and producers are no longer disadvantaged by outdated or one-sided trade rules.
    • By aligning with this framework, Japan affirms the strength and mutual respect of the U.S.–Japan economic relationship and recognizes the importance of durable trade grounded in fairness.

    SECURING INCREASED MARKET ACCESS FOR AMERICAN PRODUCERS: For decades, U.S. companies have faced barriers when seeking access to Japan’s market. This agreement delivers breakthrough openings across key sectors:

    • Agriculture and Food:
      • Japan will immediately increase imports of U.S. rice by 75%, with a major expansion of import quotas;
      • Japan will purchase $8 billion in U.S. goods, including corn, soybeans, fertilizer, bioethanol, and sustainable aviation fuel.
    • Energy:
      • Major expansion of U.S. energy exports to Japan;
      • The US and Japan are exploring a new offtake agreement for Alaskan liquefied natural gas (LNG).
    • Manufacturing and Aerospace:
      • Japan has committed to purchase U.S.-made commercial aircraft, including an agreement to buy 100 Boeing aircraft;
      • Additional billions of dollars annually of purchases of U.S. defense equipment, enhancing interoperability and alliance security in the Indo-Pacific.
    • Automobiles and Industrial Goods:
      • Longstanding restrictions on U.S. cars and trucks will be lifted, granting U.S. automakers access to the Japanese consumer market; U.S. Automotive standards will be approved in Japan for the first time ever.
      • Broader openings for a range of industrial and consumer goods, leveling the playing field for American producers.

    A GENERATIONAL SHIFT IN U.S.-JAPAN ECONOMIC RELATIONS: This agreement is not merely a trade deal—it is a strategic realignment of the U.S.-Japan economic relationship delivering for the American people.

    • For the first time, the terms of engagement place American industry, innovation, and labor at the center.
    • By securing historic investment and breaking open long-closed markets, President Trump has once again delivered a deal that no one else could deliver—a deal that will help to rebuild the American economy, strengthen our industrial foundation, and safeguard our national strength for decades to come.
    • President Trump is proving that when the United States leads from strength, the world follows—and America wins.

    SECURING LONG-TERM ECONOMIC PARTNERSHIP: This agreement reflects the strong and enduring relationship between the United States and Japan, and it advances the mutual interests of both nations.

    • By aligning on economic and national security, energy reliability, and reciprocal trade, the agreement establishes a foundation for shared prosperity, industrial resilience, and technological leadership.
    • President Trump has once again delivered a transformative outcome for the American people—ensuring that our workers, producers, and innovators are rewarded, respected, and empowered in the global economy.

    MIL OSI USA News –

  • MIL-OSI USA: Celebrating 53 Years Since the Launch of Landsat 1

    Source: US Geological Survey

    Illustration of Landsat 1

    With a swarm of satellites now circling the Earth, it’s easy to take for granted the unique value of monitoring our home planet from space. In the 1970s, however, the idea was still novel. When the Earth Resources Technology Satellite (ERTS-1)—what we now call Landsat 1—launched in 1972, it posed the following question: could we manage our natural resources using remotely-sensed data? The answer, 53 years on, is a resounding “yes.” 

    Even before the launch of ERTS-1, there were 305 proposed investigations across various disciplines, according to the ERTS-A Press Kit.  

    Members of the Landsat project office understood the value of the program would depend on the practical and widespread uses of the data collected by the ERTS Multispectral Scanner (MSS) instrument. In June 1970, NASA requested proposals for the use of data from researchers around the world. (Etter Mack). The accepted proposals came from a diverse range of institutions including universities, industry, non-profit organizations, and federal and state government agencies, demonstrating the broad interest in utilizing this new Earth observation capability. These were categorized into different scientific disciplines, covering everything from agriculture and forestry to geology and hydrology. 

    The United States Geological Survey (USGS), which planned the ERTS program alongside NASA, was the largest operational user of ERTS-1 data. In the first years of ERTS-1 in orbit, the USGS used the data to monitor strip mining, locate oil and mineral deposits, map flooding, and identify land use change. The USGS also played a large role in encouraging the widespread use of remote sensing by developing new techniques, providing training, and encouraging operational use programs throughout the federal government and beyond. 

    Between the launches of ERTS-1 and ERTS-2 (later renamed Landsat 2), the USGS and three other federal agencies—the Department of Agriculture, the Army Corp of Engineers, and the National Oceanic and Atmospheric Administration (NOAA)—began investigating how they could use ERTS data. The Department of Agriculture identified major applications areas, including inventorying and monitoring agricultural, range, and forested lands; tracking changes in the urban-rural interface; and monitoring wildlife habitat for management. The Army Corps of Engineers used ERTS-1 data for the National Dam Safety Program, to develop large-area environmental impact statements, and to study the Atlantic and Pacific coasts of the U.S. In anticipation of the launch of ERTS-2, the Corps of Engineers planned multiple NASA-funded investigations focused on reservoir management, coastal planning, and environmental impact prediction. NOAA used ERTS-1 data to improve aeronautical charts and identified further operational uses of ERTS data including water quality monitoring, impact assessments of human activity on fisheries, and snow cover analysis. 

    Landsat 1 fundamentally changed Earth observation. Its groundbreaking MSS was the first Earth-observing instrument designed to obtain calibration data in orbit and established standards for satellite-based Earth observation. What began as an experimental satellite,  has grown into one of the longest-running and most valuable Earth observation programs in the world. Today, the Landsat archive supports billions in annual economic benefits across sectors like agriculture, forestry, water resources, geology and mineral exploration, and environmental monitoring. Research in each of these key application areas has grown as each new Landsat mission innovated on previous technology. That legacy continues and will expand with the next generation of Landsat satellites.

    References

    Allaway, H.; Witten, D.; McDavid, J.; Finley, D.; Bottorff, M.; Handy, J.; Thomas, C. ERTS-B Press Kit; NASA: Washington, D.C., 20546, 1975. https://www.google.com/books/edition/Project_ERTS_B/9JjX7fSnhyUC?hl=en&gbpv=1

    McRoberts, J.; Lynch, J. ERTS Press Kit; NASA: Washington, D.C., 20546, 1972. https://ntrs.nasa.gov/api/citations/19760066719/downloads/19760066719.p…

    Pamela Etter Mack. Viewing the Earth : The Social Construction of the Landsat Satellite System; Mit Press: Cambridge, Mass., 1990.

    Timothy C. Bidwell and Cheryl A. Mitchell. Author index to published ERTS-1 Reports. Sioux Falls, SD: Technicolor Graphics under contract to USGS EROS Data Center, 86. 1975. https://pubs.usgs.gov/unnumbered/70159283/report.pdf

    Return to all Landsat Headlines

    MIL OSI USA News –

  • MIL-OSI USA: LIEUTENANT GOVERNOR LUKE PRESENTS ON AGRICULTURE AT NATIONAL LIEUTENANT GOVERNORS FORUM

    Source: US State of Hawaii

    LIEUTENANT GOVERNOR LUKE PRESENTS ON AGRICULTURE AT NATIONAL LIEUTENANT GOVERNORS FORUM

    LIEUTENANT GOVERNOR LUKE PRESENTS ON AGRICULTURE AT NATIONAL LIEUTENANT GOVERNORS FORUM  

    Hawai‘i’s Agricultural and Biosecurity Efforts Highlighted Nationally 

    FOR IMMEDIATE RELEASE 

    July 23, 2025 

     

    HONOLULU — Lieutenant Governor Sylvia Luke recently returned from the 2025 Annual Meeting of the National Lieutenant Governors Association (NLGA), held in Lake Tahoe, where she presented on Hawai‘i’s agricultural innovation and biosecurity efforts. 

     

    Luke joined Idaho Lieutenant Governor Scott Bedke in a peer panel discussion titled “Protecting and Promoting Your State’s Natural Assets.” She spoke about Hawai‘i’s unique agricultural landscape as the most isolated population center in the world and the importance of investing in local food production, specialty crops, and robust biosecurity measures to reduce reliance on imported food. 

      

    “Hawai‘i is the only state in the nation that grows coffee commercially, and we have a unique opportunity to share our world-class products from coffee and cacao to tropical fruits and flowers with the rest of the country,” said Lieutenant Governor Luke. “While we currently import nearly 90% of our food, strong partnerships with local farmers, collaboration across states, and support from the U.S. Department of Agriculture are helping us move toward greater food security and resilience.” 

     

    She also emphasized the need for continued collaboration with the USDA to ease regulatory barriers around the import and export of Hawai‘i-grown products. During the session, she fielded questions from fellow lieutenant governors on opportunities for interstate collaboration, federal partnerships, and strategies for scaling agricultural innovation in isolated and rural communities.

      

    The NLGA annual meeting brings together lieutenant governors and seconds-in-command from across the United States and its territories to exchange best practices and collaborate on shared policy priorities, including economic development, infrastructure, and natural resource management. 

      

    For more information about the NLGA Annual Meeting, visit www.nlga.us. 

     

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    MIL OSI USA News –

  • MIL-OSI USA: Senators Baldwin, Collins Take Action to Help Provide Clean Drinking Water for Rural Communities

    US Senate News:

    Source: United States Senator for Wisconsin Tammy Baldwin
    WASHINGTON, D.C. – Today, U.S. Senators Tammy Baldwin (D-WI) and Susan Collins (R-ME) introduced the bipartisan Healthy Drinking Water Affordability Act, or the Healthy H2O Act, to provide grants for water testing and treatment technology directly to individuals and non-profits in rural communities. Wisconsin continues to identify new sources of contaminated water and soil from chemicals like PFAs, but many smaller communities lack the resources to conduct testing to identify them and mitigation to remove them.
    “All Wisconsin families, businesses, and communities should trust that the water coming out of their faucets is safe to drink, but across our state, rural communities are struggling to identify and treat chemicals like PFAs that endanger our health, especially for children,” said Senator Baldwin. “My bipartisan legislation ensures our small and rural communities aren’t left behind and makes sure they have what they need to find and get rid of dangerous chemicals and keep our families healthy.”
    “Maintaining and upgrading water and wastewater systems is vital to ensuring the economic and environmental health of our communities,” said Senator Collins. “This bipartisan legislation will help reduce health-based contaminants like PFAS in drinking water, increase consumer confidence, and protect public health.”
    The Healthy H2O Act would provide grants for water quality testing and the purchase and installation of point-of-use or point-of-entry water quality improvement systems that remove or significantly reduce contaminants from drinking water. Grants would be provided by the U.S. Department of Agriculture directly to individuals and to non-profits in rural areas, specifically to those in communities with a population under 10,000, to help people test their water and install a water treatment product if needed. According to the most recent census, Wisconsin has 714 towns that have populations under 10,000.
    Across the United States and in Wisconsin, communities face threats to their drinking water from a number of contaminants, including lead, arsenic, nitrates, volatile organic compounds (VOCs), PFOA, PFOS, hexavalent chromium-6, and others. The Healthy H2O Act will provide grants for those living in rural communities to increase access to the many technologies for testing and water treatment at the point of use.
    The Healthy H2O Act is supported by the Water Quality Association, American Supply Association, Plumbing Manufacturers International, Rural Community Assistance Partnership, National Groundwater Association, High Performance Building Coalition, NSF International, Water Systems Council, Water Well Trust, The Groundwater Foundation, International Association of Plumbing and Mechanical Officials, International Code Council, DigDeep, California Ground Water Association, Eastern Water Quality Association, Florida Groundwater Association, Florida Water Quality Association, Illinois Association of Groundwater Professionals, Iowa Water Quality Association, Kentucky Groundwater Association, Michigan Ground Water Association, Michigan Water Quality Association, Minnesota Water Quality Association, Minnesota Water Well Association, Montana Water Well Drillers Association, Nebraska On-Site Wastewater Association, Nebraska State Irrigation Association, Nebraska Water Leaders Academy, Nebraska Well Drillers Association, Ohio Water Quality Association, Ohio Water Well Association, Pacific Water Quality Association, Pennsylvania Groundwater Association, Texas Water Quality Association, Virginia Water Well Association, Water Council of Milwaukee, Water Quality Association of Wisconsin, and Well Drillers Association of Wisconsin.
    Companion legislation was introduced today in the U.S. House by Representatives Chellie Pingree (D-ME-01) and David Rouzer (R-NC-07).
    The full text of this legislation is available here. A one-pager on this legislation is available here.

    MIL OSI USA News –

  • India achieves 20% ethanol blending in petrol, five years ahead of schedule

    Source: Government of India

    Source: Government of India (4)

    India has successfully achieved 20% ethanol blending in petrol in 2025, five years ahead of its original target set for 2030, Petroleum and Natural Gas Minister Hardeep Singh Puri announced on Wednesday.

    Highlighting the country’s clean energy progress, the minister noted that ethanol blending in petrol has risen from just 1.5% in 2014 to 20% in 2025- a nearly thirteenfold increase over 11 years.

    Puri emphasized that the shift towards ethanol-blended fuel has not only bolstered energy security but also led to significant economic and environmental benefits. Ethanol production has surged from 38 crore litres in 2014 to 661.1 crore litres by June 2025.

    As a result, India has saved approximately ₹1.36 lakh crore in foreign exchange by reducing its dependency on imported crude oil. At the same time, ₹1.96 lakh crore has been paid to distilleries, fueling the growth of the domestic biofuel industry. Additionally, ₹1.18 lakh crore has been disbursed to farmers, thereby enhancing rural incomes and supporting the agricultural economy.

    The environmental impact has been equally significant. The increased use of ethanol-blended petrol has helped reduce carbon dioxide emissions by 698 lakh tonnes, contributing to India’s climate goals.

    “India hits 20% ethanol blending in petrol five years ahead of target. From just 1.5% in 2014 to 20% in 2025, this clean energy leap has: >> Saved ₹1.36 lakh crore in forex >> Paid ₹1.18 lakh crore to farmers >> Cut 698 lakh tonnes of CO₂ emissions. PM @narendramodi ji’s vision is powering energy security, farmer income and climate progress,” Puri said in a post on X.

    The ethanol used in blending is primarily derived from crops such as sugarcane, reinforcing the initiative’s role in supporting Indian agriculture.

    Recently, the Union Cabinet approved a price hike for ethanol produced from molasses for the current marketing season. The revised procurement prices for Public Sector Oil Marketing Companies (OMCs) under the Ethanol Blended Petrol (EBP) Programme will apply for the Ethanol Supply Year (ESY) 2024-25, which runs from November 1, 2024, to October 31, 2025.

    (ANI)

  • MIL-OSI USA: Hawley Wins Cancelation of Grain Belt Express

    US Senate News:

    Source: United States Senator Josh Hawley (R-Mo)

    Wednesday, July 23, 2025

    U.S. Senator Josh Hawley (R-Mo.) succeeded today in securing the cancelation of a Biden-era Green New Deal loan in Missouri. Following Senator Hawley’s request, the Department of Energy canceled $5 billion in taxpayer funding to the “Grain Belt Express,” a green transmission project that has taken the land of numerous Missouri farmers across eight counties while padding the corporate profits of parent company Invenergy.

    The Grain Belt Express boondoggle loan has been CANCELLED
    — Josh Hawley (@HawleyMO) July 23, 2025
    The cancelation of the federal loan guarantee comes after Senator Hawley secured a pledge from Department of Energy (DOE) Secretary Chris Wright to halt the project. Senator Hawley sent a letter to the DOE in March urging the department to cancel the loan, as well as a follow-up letter in June. 
    Senator Hawley worked for years to prevent federal confiscation of Missourians’ property and will continue to do so. 

    MIL OSI USA News –

  • MIL-OSI USA: Rep. Lawler Introduces MAMDANI Act to Examine Risks of Government-Run Grocery Stores

    Source: US Congressman Mike Lawler (R, NY-17)

    Washington, D.C. – 7/23/25… Today, Congressman Mike Lawler (NY-17) introduced the Measuring Adverse Market Disruption And National Impact (MAMDANI) Act, legislation that directs the Federal Trade Commission to conduct a comprehensive study into the competitive, economic, and supply chain impacts of government-owned grocery stores.

    As municipalities across the country, including some in New York, entertain proposals to open public grocery stores, this legislation calls on the FTC to investigate potential consequences of using taxpayer dollars to compete against local, private-sector grocers. 

    The MAMDANI Act requires the FTC, in coordination with USDA agencies, to evaluate the downstream effects these government-run entities could have on food prices, consumer access, farmers, charitable food organizations, and the long-term health of the retail grocery market.

    “Government-run grocery stores raise serious questions about market fairness and taxpayer accountability,” said Congressman Lawler. “The MAMDANI Act ensures we carefully assess the potential impacts of such proposals before public funds are committed, or they risk undermining local businesses and disrupting supply chains, ultimately leaving consumers worse off,” said Congressman Lawler. 

    By mandating an analysis of how public grocery stores might affect prices received by producers, purchasing power in food supply chains, and whether these initiatives actually address food deserts or simply create a new layer of government-run inefficiency, the bill aims to ensure that policymakers fully understand the potential consequences before embracing such proposals.

    The FTC’s findings will be submitted in a public report to Congress and updated annually with recommendations for legislative or regulatory action.

    “Zohran Mamdani’s push for government-owned grocery stores is straight out of the Marxist playbook, and history shows exactly how this experiment ends. New Yorkers deserve solutions, not socialist fantasies that have failed spectacularly every time they’ve been tried,” concluded Congressman Lawler.

    Congressman Lawler is one of the most bipartisan members of Congress and represents New York’s 17th Congressional District, which is just north of New York City and contains all or parts of Rockland, Putnam, Dutchess, and Westchester Counties. He was rated the most effective freshman lawmaker in the 118th Congress, 8th overall, surpassing dozens of committee chairs.

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    Full text of the bill can be found HERE.

    MIL OSI USA News –

  • MIL-OSI USA: Hinson Introduces the Save Our Bacon Act to Block California’s Radical Prop 12, Protect Interstate Commerce

    Source: United States House of Representatives – Congresswoman Ashley Hinson (IA-01)

    Bill ensures all Americans can continue to enjoy Iowa Ag Products & blocks blue-state bacon bans

    Washington, D.C. — Today, Congresswoman Ashley Hinson (IA-02) introduced the Save Our Bacon Act to protect access to interstate commerce for Iowa family farmers and lower grocery prices for consumers. California and Massachusetts have proposed arbitrary mandates on production practices for farmers in other states. The Save Our Bacon Act would alleviate this overregulation by prohibiting state and local governments from interfering with the production of livestock in other states. 

    “California’s Proposition 12 and Massachusetts’ Question 3 pose a major threat to family farms and food security—both in Iowa and across the country. The Save Our Bacon Act reaffirms livestock producers’ right to sell their products across state lines, without interference from arbitrary mandates. This legislation will stop out-of-touch activists—who don’t know the first thing about farming—from dictating how Iowa farmers do their job.

    “Since day one in Congress, I’ve fought to keep food affordable and protect local producers. Under the Trump Administration, rural America will continue to be at the forefront of policy conversations that impact producers’ ability to feed and fuel the world—and there will be no bacon ban on my watch.” – Congresswoman Ashley Hinson

    “With Proposition 12, California has set out-of-touch, arbitrary requirements for how producers should operate their farming businesses. California activists now claim to know what’s best for the producers who have raised livestock from generation to generation. The Save Our Bacon Act will allow Iowa’s farmers to continue doing what they do best – feeding our country and the world.” – Iowa Governor Kim Reynolds

    “California needs to keep its hands off our bacon. No other state should dictate how Iowans farm, let alone California’s bureaucrats. The Save Our Bacon Act stops California’s overreach, protects hog farmers, and lets states like Iowa regulate how their own farmers raise livestock. I want to thank Representative Hinson for her work on this important legislation, and I urge Congress to pass it and stand up for livestock producers across the nation.” – Iowa Attorney General Brenna Bird
     
    “I applaud Congresswoman Hinson for introducing legislation to address the overreach of California’s Prop 12 and restore robust interstate commerce. As the nation’s leading pork-producing state, Iowa plays a critical role in maintaining the safest, most abundant, and most affordable food supply in the world. Allowing states like California to dictate farming practices only creates a patchwork of requirements that drive up production costs and food prices for consumers. This important legislation, which previously earned bipartisan support in the House Agriculture Committee’s passage of last year’s Farm Bill, is essential to safeguarding Iowa’s agriculture and preventing any single state from setting a precedent that undermines the foundation of our food supply. This legislation would protect Iowa’s farmers from burdensome out-of-state regulations that threaten our rural economies and communities, and I urge the House and Senate to send this legislation to President Trump for his signature.” – Iowa Secretary of Agriculture Mike Naig
     
    “We sincerely appreciate Representative Hinson for consistently engaging with family farmers and championing legislation that provides the certainty we need to pass along our farms to the next generation. Without legislation to shield America’s 60,000+ pork-producing family farms from heavy-handed, multi-state regulations, many producers otherwise would be faced with business-crushing decisions.” – National Pork Producers Council President Duane Stateler, a pork producer from McComb, Ohio
      
    “We appreciate Rep. Hinson’s leadership in fighting to protect Iowa pig farmers, who work hard every day to care for their animals and produce safe, high-quality pork. The Supreme Court made it clear the best option is for Congress to address California’s Prop 12 to prevent a patchwork of conflicting state regulations. Since Prop 12 took effect, the law has negatively impacted both consumers and producers. We urge Congress to act this year and support Rep. Hinson’s efforts to stop this burdensome mandate.” – Aaron Juergens, a pig farmer from Carroll County who serves as president of the Iowa Pork Producers Association. 
     
    “Iowa Farm Bureau members are thankful for Rep. Hinson’s unwavering support for Iowa agriculture and being a champion for fair interstate commerce through the introduction of the Save Our Bacon Act. When states enact laws that restrict or ban the sale of any type of goods from other states, they hinder market access for both farmers and businesses. This creates a negative ripple effect, as these entities struggle with arbitrary business standards and increased costs. Farm families and consumers are grappling with record-high prices, and without congressional action to strengthen the Interstate Commerce Clause, consumers will face fewer choices and higher costs at the grocery store.” – Iowa Farm Bureau Federation

    Background: 

    • In 2018, California passed Proposition 12, which prohibits the sale of certain meat and poultry products unless they are produced in compliance with the state’s arbitrary animal housing requirements.
    • In May 2023, the US Supreme Court upheld Proposition 12 in a 5 – 4 decision, with the Court noting that Congress has the authority to determine how states may interfere with interstate commerce.
    • California makes up nearly 15% of the national market for pork, leading many Iowa livestock producers to choose between complying with another state’s mandate and losing access to a major market for their products. Similar state-level mandates – such as Massachusetts’ Question 3 – create further uncertainty for livestock producers and risk an unworkable patchwork of state regulations for American farmers.  
    • Research from economists has shown that mandates like Prop 12 come at a significant cost to both producers and consumers. Following the implementation of Prop 12, the cost per pound of pork loin in California increased by 41%. Estimates also show that pork producers face costs of up to $4,000 per sow to comply with California’s arbitrary mandate.
    • Rep. Hinson has been a tireless champion for Iowa pork producers against this overreach.   
      • In December 2023, Rep. Hinson testified before the House Agriculture Committee to share stories from farmers in Iowa about the negative impact that mandates like Prop 12 would have on their operation.
      • In a recent House Appropriations Committee hearing, Hinson asked USDA Secretary Brooke Rollins about the potential consequences of laws like Prop 12. Secretary Rollins called mandates like Prop 12 “unsustainable.”
    • On July 9, the Trump Administration’s Department of Justice filed a lawsuit against the State of California over state laws that have caused grocery prices to skyrocket, including Prop 12.

    This bill was introduced with Representatives Feenstra, Nunn, Miller-Meeks, Sam Graves, Rouzer, Murphy, Messmer, Adrian Smith, Flood, LaMalfa, Alford, Dusty Johnson, Bost, Newhouse, Mark Harris, Finstad, Wied, and Rose.

    The bill text can be found here. Click here to read exclusive reporting by Bloomberg News. 

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    MIL OSI USA News –

  • MIL-OSI USA: Safeguarding Lake Champlain with Wastewater Upgrades

    Source: US State of New York

    overnor Hochul today announced the completion of a critical $3.1 million wastewater infrastructure improvement project in the Town of Westport, Essex County. The improvements not only protect public health and the environment but also help preserve Lake Champlain’s role as a vital driver of the local tourism economy. State, federal, and local investments are minimizing the financial impact of this critical project on local ratepayers.

    “Every New Yorker deserves access to affordable clean water and reliable infrastructure,” Governor Hochul said. “This investment in Westport is a win for families, local businesses, and the millions who visit Lake Champlain each year. By making critical upgrades affordable for small communities, we’re protecting public health, supporting a vital tourism economy and building a more sustainable future for the Adirondacks, North Country and beyond.”

    Project Overview

    The project focused on rehabilitating Sewer District No. 1 to address critical infrastructure needs. Deteriorated pipes and manholes had allowed excessive stormwater and groundwater to infiltrate the wastewater collection system. This excess flow strained the wastewater treatment plant and threatened the local watershed.

    By lining and replacing deteriorated gravity sewers and manholes, the town achieved a substantial reduction in key areas of the district; the town has substantially reduced inflow and infiltration. This crucial improvement significantly enhances the reliability and resiliency of its wastewater treatment operations, ensuring long-term compliance with state environmental regulations, and directly contributing to improved water quality in Lake Champlain, a vital regional resource.

    Funding Breakdown

    To help Westport affordably undertake this project, New York State Department of Environmental Conservation provided a grant, and the New York State Environmental Facilities Corporation provided a grant and interest-free financing package:

    • $1.9 million Water Quality Improvement Project grant
    • $100,000 Wastewater Infrastructure Engineering Planning Grant to jumpstart the project. Planning grants set the framework to advance fiscally sound and well-designed projects to construction by supporting completion of an approvable engineering report for the project
    • $309,000 Water Infrastructure Improvement grant
    • $928,000 interest-free hardship financing from the Clean Water State Revolving Fund

    The financial assistance provided to Westport through the Clean Water State Revolving Fund is projected to save local ratepayers over $1.3 million in debt service compared to traditional financing. In the short-term, loans subsidized through the State Revolving Funds can save communities as much as 75 percent in interest payments compared to borrowing in the municipal bond market.

    In the long-term, State Revolving Fund loan repayments to EFC create a self-sustaining source of recurring revenue to meet the never-ending need to rehabilitate, replace and modernize aging infrastructure in the State. The State Revolving Funds are New York’s primary financial mechanism for advancing its clean water goals, delivering over $1 billion annually to communities statewide. Combined with targeted State grants, the State Revolving Funds are part of New York’s broader strategy to maximize the impact of infrastructure dollars, ensuring every region benefits from cleaner water, safer systems, and long-term sustainability.

    Fully funded State Revolving Funds are necessary for New York to be prepared to meet the never-ending need for communities to repair, rehabilitate and modernize aging infrastructure in the future. Access to affordable financing increases investment in water infrastructure, which can prevent costly catastrophic system failures and alleviate pressure on utilities to raise rates, providing relief to many families already struggling to pay their water bills.

    Investing in the Adirondacks

    This project is part of Governor Kathy Hochul’s comprehensive affordability and clean water agenda to help ensure communities statewide have access to safe and sustainable water systems. The State allocated 22 percent of its financial assistance through the State Revolving Funds to Adirondack communities this year, totaling $263 million. In the past decade, EFC has awarded $623 million in financing and State and federal grants to projects in the Blue Line. This amount includes $316 million in State Water Infrastructure Improvement grants, reinforcing the State’s commitment to helping small, rural communities affordably invest in water infrastructure. These strategic investments are helping to modernize aging systems, safeguard natural resources, and reduce the financial burden on rural ratepayers.

    In the last 10 years, DEC funded 76 projects in the Adirondacks through WQIP alone, totaling more than $71 million to upgrade critical water and sewer infrastructure and protect water quality and the environment. At least $75 million is currently available through DEC’s WQIP program and up to $3 million is available through DEC’s Non-Agriculture Nonpoint Source Planning and Municipal Separate Storm Sewer System (MS4) Mapping Grant (NPG) program.

    Applications for these grants are available through the New York State’s Consolidated Funding Application (CFA) through July 31, 2025, at 4 p.m.

    Supporting Small and Rural Communities

    Under Governor Hochul’s leadership, EFC is currently accepting applications for $325 million in grants, including enhanced awards for sewer projects in small and rural communities. Even with substantial state support for water infrastructure, many small municipalities still face financial barriers. To address this, Governor Hochul once again directed EFC to double grants from 25 percent to 50 percent of the net eligible project costs for small struggling communities. This enhanced funding will significantly reduce the financial impact on local ratepayers.

    EFC’s Community Assistance Teams are available to help local governments complete funding applications and encourage communities to reach out to receive help in addressing their local water infrastructure needs. This targeted outreach helps ensure that small, rural communities can successfully compete for funding and implement urgently needed projects.

    EFC President and CEO Maureen A. Coleman said, “Modern, reliable wastewater systems are essential to community health and environmental protection. EFC is pleased to support the Town of Westport’s strategic investments in its water infrastructure, making this project affordable for ratepayers and ensuring that Lake Champlain continues to thrive as both an ecological asset and a cornerstone of the local tourism economy.”

    DEC Commissioner Amanda Lefton said, “Under Governor Hochul’s leadership, New York is making record investments to enhance water quality in Lake Champlain and in communities throughout the state. Overhauling Westport’s aging infrastructure and updating wastewater treatment operations reduce pollution and phosphorus that impairs Lake Champlain, threatens drinking water, and contributes to harmful algal blooms. DEC looks forward to continuing to make these essential investments to reduce the financial burden on New Yorkers, safeguard drinking water, and ensure our natural resources are well protected.”

    Senator Charlies Schumer said, “Lake Champlain is a crown jewel of the North Country and boosts our local tourism economy. I’m proud to have delivered nearly $1 million in federal funding to modernize the Town of Westport’s wastewater system. This upgrade will help keep Lake Champlain clean by cleaning up the gravity sewers and manholes, preserving the lake’s crucial role for tourism in the North Country – all while creating good-paying jobs, jobs, jobs. I’m grateful for Governor Hochul’s partnership in the fight to turn the tide on our state’s aging water sewer infrastructure to keep our communities economically safe, healthy and vibrant.”

    Senator Kirsten Gillibrand said, “The health and safety of our communities is dependent on access to safe and reliable water infrastructure. Far too many across the country lack access to the functional and efficient water systems they need, and I am proud that this project will help protect the welfare of Westport families and the millions who visit Lake Champlain every year. I will continue fighting in the Senate to bring home more funding to modernize our aging infrastructure so that all New Yorkers have access to the clean and efficient water systems they deserve.

    Town of Westport Supervisor Michael “Ike” Tyler said, “This project was essential for our community. With State support, we were able to take on a critical infrastructure challenge in a way that was financially responsible for our residents. These upgrades will protect our residents, our environment, and the lake we all depend on.”

    Essex County Chairman Shaun Gillilland said, “This project is a showcase example of teamwork at all levels of New York and local government to combat and alleviate the most challenging stresses on rural infrastructure; namely modernizing and improving older public wastewater systems to ensure they improve and not deteriorate our natural water resources and drinking water.”

    New York’s Commitment to Water Quality
    New York State continues to increase its nation-leading investments in water infrastructure. The next round of EFC’s Water Infrastructure Improvement and Intermunicipal Water Infrastructure Grants is now open at www.efc.ny.gov. This round reflects New York’s continued leadership in investing in affordable, community-driven clean water solutions.

    With $500 million allocated for clean water infrastructure in the FY26 Enacted Budget announced by Governor Hochul, New York will have invested a total of $6 billion in water infrastructure since 2017. Any community needing assistance with water infrastructure projects is encouraged to contact EFC. New Yorkers can track projects benefiting from EFC’s investments using the interactive project impact dashboard.

    MIL OSI USA News –

  • MIL-OSI USA: Van Orden, Salinas Introduce Legislation to Level the Playing Field for the Cider Industry

    Source: United States House of Representatives – Congressman Derrick Van Orden (Wisconsin 3rd)

    WASHINGTON, D.C. – Today, Congressman Derrick Van Orden (WI-03) and Congresswoman Andrea Salinas (D-OR) introduced the Bubble Tax Modernization Act, which will lower the tax rate for lower-alcohol wine, cider, and mead made with fruit.

    Currently, the tax code dictates that if a sparkling cider, wine, or mead is made with fruits other than apples and pears, then it can only be minimally carbonated, often to the point that it tastes flat to most consumers. If cidermakers want to carbonate their fruited drinks to the same level as other, non-fruited ciders, taxes on these fruited ciders triple, often referred to as the ‘bubble tax’. 

    Most craft beverage entrepreneurs can’t afford to carbonate these products at the level the market wants. The result is that an important American agricultural sector is falling flat. The Bubble Tax Modernization Act will allow cidermakers to create and carbonate fruited beverages without this higher tax burden, granting them more freedom to produce drinks to match public demand.

    “Cidermakers should not be limited to just pears and apples in order to avoid a massive, unnecessary tax hike on their products,” said Rep. Van Orden. “This bill works for everyone – farmers, cidermakers, and consumers – by allowing any type of fruit to be added to cider and taxed at the standard rate.”

    “Oregon has some of the highest quality fruit in the country, but red tape in our tax code makes it nearly impossible to use these products to make the fruited wines, ciders, and meads that people want,” said Rep. Salinas. “My bill levels the playing field for the cider industry and makes it more affordable to produce the sparkling, fruited drinks consumers want.”

    “The Bubble Tax Modernization Act is a critical, overdue fix that will finally bring fairness to how cider is taxed in the U.S.,” said Monica Cohen, CEO of the American Cider Association. “It eliminates outdated penalties on carbonated, fruit-forward ciders and gives small cidermakers the freedom to innovate without being punished. This bill supports American agriculture, strengthens rural economies, and helps keep cider accessible to consumers. It’s common-sense legislation and we applaud Representatives Salinas and Van Orden for moving this forward.”

    The Bubble Tax Modernization Act is endorsed by the American Cider Association, Northwest Cider Association, North Carolina Cider Association, New York Cider Association, and Pennsylvania Cider Guild.

    To read the full text of this legislation, click here. 

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    MIL OSI USA News –

  • MIL-OSI USA: Scientists Find a “Silver Lining” to Adult House Flies’ Filthy Behavior

    Source: US Agriculture Research Service

    Scientists Find a “Silver Lining” to Adult House Flies’ Filthy Behavior

    By: Maribel Alonso
    Email: Maribel.Alonso@usda.gov

    Researchers at USDA’s Agricultural Research Service (ARS) are investigating the microbial communities carried by house flies to enhance disease monitoring and reduce the risk of disease transmission by fly-borne pathogens in livestock, ultimately protecting our food supply and public health.

    House flies play a crucial role in transferring harmful bacteria, viruses, and other microbes among cattle. They also have the potential to spread these pathogens from farms to nearby livestock operations and residential areas.

    Adult house flies often have unrestricted access to farm waste, cattle manure, and animal excretions. Flies can pick up microbes from these sources and then spread them, potentially affecting livestock health, welfare, and production efficiency. This can contribute to significant economic losses. According to a previous study, it is estimated that U.S. producers spend over $1 billion annually on implementing fly control programs alone.

    Effective fly management can mitigate the spread of disease-causing bacteria and viruses, thereby improving livestock health and reducing potential risks to human health.  

    Photo by Dustin Swanson (USDA-ARS)

    ARS researchers, university partners, and cattle producers are collaborating to study the types and numbers of microbes carried by adult house flies to assess their role as sources and disseminators of bacteria and viruses within confined dairy farms and, potentially, to neighboring operations.

    In a study conducted in collaboration with Kansas State University (KSU), researchers determined that examining the genomic DNA (the complete set of genetic material in an organism) extracted from pools of individual adult female house flies in a specific location can provide a comprehensive overview of the microbes present in their local environment. House flies act as natural “flying swabs,” collecting microbial samples from diverse sources like sick animals or their waste. This innovative approach could potentially serve as a new tool to monitor and study microbes in the environment by allowing scientists to efficiently and safely analyze microbes in the field.

    “The numbers of animals, their health status, the composition, and volume of cattle manure, and other environmental conditions at dairy cattle operations vary from month to month, which in turn affects the abundance and types of microbes that will be present and therefore accessible by house flies,” said Dana Nayduch, a research leader and entomologist at the Arthropod-Borne Animal Diseases Research Unit, Center for Grain and Animal Health Research in Manhattan, KS.

    “By looking at what flies are carrying within and on their bodies over time, we can directly assess what is going on in their surrounding environment on the farm, as they acquire those microbes from these sources all day, every day. In fact, if there is a sick animal on a farm, a fly is attracted to it and will find that needle in the haystack for you, potentially among thousands of animals, and feed upon it and collect its microbes in the process,” explained Nayduch.

    The insights gained from these ongoing studies can offer farm managers early warnings about the presence of harmful bacteria and viruses in their operations, enabling them to take preventive measures to protect cattle against potential severe illnesses or even outbreaks.

    The Agricultural Research Service is the U.S. Department of Agriculture’s chief scientific in-house research agency. Daily, ARS focuses on solutions to agricultural problems affecting America. Each dollar invested in U.S. agricultural research results in $20 of economic impact.

    ###

    USDA is an equal opportunity provider, employer, and lender.

    MIL OSI USA News –

  • MIL-OSI USA: Scientists Find a “Silver Lining” to Adult House Flies’ Filthy Behavior

    Source: US Agriculture Research Service

    Scientists Find a “Silver Lining” to Adult House Flies’ Filthy Behavior

    By: Maribel Alonso
    Email: Maribel.Alonso@usda.gov

    Researchers at USDA’s Agricultural Research Service (ARS) are investigating the microbial communities carried by house flies to enhance disease monitoring and reduce the risk of disease transmission by fly-borne pathogens in livestock, ultimately protecting our food supply and public health.

    House flies play a crucial role in transferring harmful bacteria, viruses, and other microbes among cattle. They also have the potential to spread these pathogens from farms to nearby livestock operations and residential areas.

    Adult house flies often have unrestricted access to farm waste, cattle manure, and animal excretions. Flies can pick up microbes from these sources and then spread them, potentially affecting livestock health, welfare, and production efficiency. This can contribute to significant economic losses. According to a previous study, it is estimated that U.S. producers spend over $1 billion annually on implementing fly control programs alone.

    Effective fly management can mitigate the spread of disease-causing bacteria and viruses, thereby improving livestock health and reducing potential risks to human health.  

    Photo by Dustin Swanson (USDA-ARS)

    ARS researchers, university partners, and cattle producers are collaborating to study the types and numbers of microbes carried by adult house flies to assess their role as sources and disseminators of bacteria and viruses within confined dairy farms and, potentially, to neighboring operations.

    In a study conducted in collaboration with Kansas State University (KSU), researchers determined that examining the genomic DNA (the complete set of genetic material in an organism) extracted from pools of individual adult female house flies in a specific location can provide a comprehensive overview of the microbes present in their local environment. House flies act as natural “flying swabs,” collecting microbial samples from diverse sources like sick animals or their waste. This innovative approach could potentially serve as a new tool to monitor and study microbes in the environment by allowing scientists to efficiently and safely analyze microbes in the field.

    “The numbers of animals, their health status, the composition, and volume of cattle manure, and other environmental conditions at dairy cattle operations vary from month to month, which in turn affects the abundance and types of microbes that will be present and therefore accessible by house flies,” said Dana Nayduch, a research leader and entomologist at the Arthropod-Borne Animal Diseases Research Unit, Center for Grain and Animal Health Research in Manhattan, KS.

    “By looking at what flies are carrying within and on their bodies over time, we can directly assess what is going on in their surrounding environment on the farm, as they acquire those microbes from these sources all day, every day. In fact, if there is a sick animal on a farm, a fly is attracted to it and will find that needle in the haystack for you, potentially among thousands of animals, and feed upon it and collect its microbes in the process,” explained Nayduch.

    The insights gained from these ongoing studies can offer farm managers early warnings about the presence of harmful bacteria and viruses in their operations, enabling them to take preventive measures to protect cattle against potential severe illnesses or even outbreaks.

    The Agricultural Research Service is the U.S. Department of Agriculture’s chief scientific in-house research agency. Daily, ARS focuses on solutions to agricultural problems affecting America. Each dollar invested in U.S. agricultural research results in $20 of economic impact.

    ###

    USDA is an equal opportunity provider, employer, and lender.

    MIL OSI USA News –

  • MIL-OSI USA: Tuberville, Hagerty Reintroduce Legislation to Punish Foreign Governments that Violate American Trade Agreements

    US Senate News:

    Source: United States Senator for Alabama Tommy Tuberville

    Tuberville continues fighting for Alabama-based Vulcan Materials

    WASHINGTON – U.S. Senator Tommy Tuberville (R-AL) joined U.S. Senator Bill Hagerty (R-TN) in reintroducing the Defending American Property Abroad Act to address the continued aggression from the Mexican government toward Alabama-based Vulcan Materials Company in flagrant violation of the United States-Mexico-Canada Agreement (USMCA). The senators’ legislation would impose retaliatory prohibitions to deter and punish any nation in the Western Hemisphere that unlawfully seizes American assets, such as the Mexican government’s ongoing attempts to seize Vulcan’s deep-water port in Quintana Roo, Mexico.

    Sen. Tuberville cosponsored this legislation in the 118th Congress.           

    “For years, the Mexican Government has shown undue aggression toward American businesses, primarily Alabama’s Vulcan Materials,” said Sen. Tuberville. “The continued attempts to exploit Vulcan’s operation in the Yucatan Peninsula in Mexico is a disgrace to our longstanding trade agreement with Mexico. The Trump Administration has hit the ground running to prioritize and empower American companies — I look forward to seeing this bill get across the finish line to ensure American companies are fully protected.”

    “I strongly condemn the Mexican government’s threats against Vulcan Materials Company, and I am pleased to see this bipartisan and bicameral rebuke from the United States Senate,” said Sen. Hagerty. “Under the leadership of Mexico’s previous president, Andrés Manuel López Obrador, and now the current president, Claudia Sheinbaum, the Mexican government is committing a blatant theft against a major American company and, by extension, the United States itself. No nation should be allowed to bully an American firm without consequences. Our legislation will counter any attempt by the Mexican government to profit from illegal moves to expropriate, nationalize, or otherwise seize U.S. assets.”

    Sens. Tuberville and Hagerty were joined by U.S. Sens. Angela Alsobrooks (D-MD), Marsha Blackburn (R-TN), Katie Britt (R-AL), Ted Budd (R-NC), Tim Kaine (D-VA), and Roger Wicker (R-MS) in cosponsoring the legislation. U.S. Congressman August Pfluger (R-TW-11) introduced companion legislation in the U.S. House of Representatives.

    BACKGROUND:

    This legislation would authorize the Department of Homeland Security (DHS) to prohibit vessels from entering a U.S. port if they previously used a port, land, or infrastructure that had been illegally seized from a U.S. entity by a foreign nation in the Western Hemisphere. It also empowers the U.S. Trade Representative to investigate and respond to foreign governments that deny U.S. companies fair and equal treatment or that have expropriated, nationalized, or seized U.S. assets.

    In May 2022, Mexican President Andrés Manuel López Obrador (AMLO) abruptly shut down Vulcan’s operations with false claims that the firm was violating its contract, and since then, the Mexican Government, under AMLO’s direction, has waged an unceasing pressure campaign against Vulcan, including multiple lawsuits and, at times, sending military and law enforcement officers toits facility in Quintana Roo, Mexico. Last year, AMLO announced that he is pushing to designate the port and mine a “Protected Natural Area.”

    The Alabama delegation has been united in advocating for Vulcan in its ongoing dispute with Mexico. Last year, Sens. Tuberville, Britt, Hagerty, and Kaine sent a letter to Alicia Bárcena, Secretary of Foreign Affairs of Mexico, urging her to take action regarding the Mexican government’s mistreatment of Vulcan Materials Company.

    In 2023, the Alabama delegation met with Mexico’s Ambassador to the U.S. Moctezuma to advocate for Vulcan. In 2022, Sen. Tuberville sent a letter with former Senator Richard Shelby and eight other U.S. senators calling on the Biden-Harris administration to discourage Mexican aggression against American companies with investments or operations in Mexico.

    Sen. Tuberville also spoke in support of Vulcan on the Senate floor earlier this year.

    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP and Aging Committees.

    MIL OSI USA News –

  • MIL-OSI: Diane Davis Appointed to Boards of First Fed and First Northwest Bancorp

    Source: GlobeNewswire (MIL-OSI)

    PORT ANGELES, Wash., July 23, 2025 (GLOBE NEWSWIRE) — First Northwest Bancorp (NASDAQ: FNWB), the holding company for First Fed Bank, announced the appointment of Diane C. Davis to the Boards of Directors of both First Fed Bank and First Northwest Bancorp.

    Ms. Davis brings more than 25 years of leadership experience in the insurance industry, with expertise in executive management, strategy, risk management, and corporate governance. Further, Diane is an experienced community bank board member, having served on the board of First Financial Northwest Bancorp, which was acquired earlier this year.

    “Diane’s extensive experience in risk oversight and executive leadership will be a tremendous asset to our organization as we continue to grow and serve our communities,” said Geri Bullard, Interim CEO of First Fed. “Her proven expertise in strategy and governance aligns with our long-term goals, and we are excited to welcome her to the Board.”

    “Community banks play a vital role in building strong, resilient local economies, and I’m deeply passionate about supporting that mission. I’m honored to join First Fed’s board and work alongside its dedicated executive team and fellow board members,” said Diane Davis.

    Ms. Davis began her career at Farmers New World Life Insurance Company in 1992 and advanced through a variety of leadership roles, including Chief Risk Officer and ultimately President from 2016 until her retirement in 2019. She also served as Regional Chief Risk Officer for Global Life North America at Zurich Insurance Company Ltd., bringing broad actuarial and strategic planning experience to her board role.

    She holds a Bachelor of Science in Actuarial Science from the University of Illinois at Urbana-Champaign and a Master of Business Administration from the University of Washington. A Fellow of the Society of Actuaries, Ms. Davis currently serves as co-chair of 5050 Women on Boards of Greater Seattle and is a former member of the Board of Directors for Habitat for Humanity Seattle-King County.

    Her appointment reflects First Fed’s ongoing commitment to strong governance, sustainable growth, and long-term financial security for its customers and communities.

    About FNWB

    First Northwest Bancorp (Nasdaq: FNWB) is a financial holding company engaged in investment activities including the business of its subsidiary, First Fed Bank. First Fed is a Pacific Northwest-based financial institution which has served its customers and communities since 1923. Currently, First Fed has 18 locations in Washington State including 12 full-service branches. First Fed’s business and operating strategy is focused on building sustainable earnings by delivering a full array of financial products and services for individuals, small businesses, non-profit organizations and commercial customers. In 2022, First Northwest made an investment in The Meriwether Group, LLC, a boutique investment banking and accelerator firm. Additionally, First Northwest focuses on strategic partnerships to provide modern financial services such as digital payments and marketplace lending. First Northwest Bancorp was incorporated in 2012 and completed its initial public offering in 2015 under the ticker symbol FNWB. First Fed is headquartered in Port Angeles, Washington.

    First Fed Bank was recognized by Puget Sound Business Journal as a Best Workplace in 2023 and top Corporate Philanthropist in 2023 and 2024. By popular vote, First Fed received 2024 awards for Best Bank and Best Lender in Best of the Peninsula for Clallam County. First Fed is a Member FDIC and equal housing lender.

    Geri Bullard, Interim CEO / Chief Operating Officer
    First Fed 105 W. Eight Street
    Port Angeles, WA 98362
    360-565-8556

    The MIL Network –