NewzIntel.com

Category: Asia Pacific

  • MIL-OSI USA: Crapo, Blumenthal, Warren File Major Richard Star Act as Amendment to Must-Pass Defense Bill

    US Senate News:

    Source: United States Senator for Idaho Mike Crapo

    Washington, D.C.–U.S. Senators Mike Crapo (R-Idaho), Richard Blumenthal (D-Connecticut) and Elizabeth Warren (D-Massachusetts) announced they are filing the Major Richard Star Act as an amendment to the annual must-pass defense bill, the National Defense Authorization Act (NDAA).

    Currently, only veterans with disability ratings above 50 percent and more than 20 years of service are eligible to receive the full amount of their U.S. Department of Defense (DOD) retirement and U.S. Department of Veterans Affairs (VA) disability payments–leaving behind more than 50,000 combat-injured military retirees.  If adopted, the Senators’ Major Richard Star Act will fix this unjust policy for medical retirees with a combat-related disability—providing them their full VA disability and DOD retirement payments.

    “The Major Richard Star Act corrects a severe injustice for combat-wounded veterans,” said Senator Crapo.  “The support for this correction is clear.  Though the namesake of our legislation is no longer with us, we must pass this fix on behalf of the more than 50,000 veterans, including hundreds in Idaho, who stand to benefit.”

    “The Major Richard Star Act would correct one of the deepest injustices in our present veterans’ disability system.  As an amendment to the NDAA, it would enable tens of thousands of combat-injured veterans to collect the full benefits they’ve earned,” said Senator Blumenthal.  “Right now they’re denied fair, complete compensation because they are subject to a dollar-for-dollar offset of their VA disability and military retirement benefits.  It’s unacceptable–and I’m joining my colleagues from both sides of the aisle to right this wrong by seeking to attach our legislation to this year’s NDAA.  With more than 31 cosponsors, adopting our amendment is a commonsense next step to finally provide these military retirees who already sacrificed so much the benefits they need and earned.”

    “Our veterans put their lives on the line for this country, and it’s time our government gives them the full benefits they’ve earned,” said Senator Warren.  “Including this bill in the NDAA will ensure the federal government keeps its promise to our veterans.”

    This bipartisan legislation is named in honor of Major Richard A. Star, a decorated war veteran who was forced to medically retire due to his combat-related injuries.  Major Star sadly lost his battle with cancer on February 13, 2021.

    The Senators’ legislation has 76 bipartisan cosponsors, and is supported by the following military, veterans and survivor organizations: Air Force Sergeants Association (AFSA), Air & Space Forces Association (AFA), American GI Forum, The American Legion, American Logistics Association, American Military Society, American Veterans (AMVETS), America’s Warrior Partnership, American WWII Orphans Network, Armed Forces Retiree Association, Army Aviation Association of America (AAAA), Association of Military Surgeons of the United States (AMSUS), Association of the United States Army (AUSA), Association of the United States Navy (AUSN), Blinded Veterans Association (BVA), Blue Star Families, Burn Pits 360, Catholic War Veterans of the USA & Auxiliary, Chief Warrant Officers Association of the US Coast Guard (CWOA), Code of Support Foundation, Commissioned Officers Association of the U.S. Public Health Service, Inc. (COA), Disabled American Veterans (DAV), Dixon Center for Military and Veterans Services, Enlisted Association of the National Guard of the United States, Fleet Reserve Association (FRA), Gold Star Spouses of America, Grunt Style Foundation, Gold Star Wives of America (GSW), Healing Household, Heroes Athletic Association, Hire Heroes USA, HunterSeven Foundation, Japanese American Veterans Association, Iraq and Afghanistan Veterans of America (IAVA), Jewish War Veterans of the United States of America (JWV), K9s for Warriors, Marine Corps League (MCL), Marine Corps Reserve Association (MCRA), Military Chaplains Association of the United States of America (MCA), Military Family Advisory Network, Military Officers Association of America (MOAA), Military Order of the World Wars, Military Order of the Purple Heart (MOPH), Mission Roll Call, National Association of State Directors of Veterans Affairs (NASDVA), National Defense Committee, National Guard Association of the United States, National Military Family Association (NMFA), Naval Enlisted Reserve Association (NERA), Non Commissioned Officers Association (NCOA), Operation First Response, Paralyzed Veterans of America (PVA), Project Sanctuary, The Ranger Leadership and Policy Center, Quality of Life Foundation, Reserve Organization of America (ROA), Sea Service Family Foundation, Stronghold Freedom Foundation, Student Veterans of America, TBI Warrior Foundation, Tragedy Assistance Program for Survivors (TAPS), The Retired Enlisted Association (TREA), The Independence Fund (TIF), United States Army Warrant Officers Association (USAWOA), United States Coast Guard Chief Petty Officers Association (USCG CPOA), United Through Reading, VetsFirst/United Spinal Association, Veterans of Foreign Wars (VFW), Vietnam Veterans of America (VVA), Wounded Paw Project and Wounded Warrior Project (WWP).

    MIL OSI USA News –

  • India’s media sector booms with regional growth and digital expansion: govt

    Source: Government of India

    Source: Government of India (4)

    India’s media and broadcasting sector is undergoing a dynamic transformation, driven by steady growth in traditional platforms and rapid advancement in the digital space.

    In a statement presented in the Lok Sabha, Union Minister of State for Information and Broadcasting Dr. L. Murugan highlighted key developments across print, television, and public broadcasting.

    The number of registered publications has increased from 1.05 lakh in 2014-15 to 1.55 lakh in 2024- 25, reflecting the strong rise of regional and vernacular media. Private satellite television channels have also grown from 821 to 908 over the same period, underscoring the sector’s resilience and adaptability.

    Doordarshan’s Free Dish platform now carries 92 private channels along with 50 DD channels, offering content in multiple regional languages. This multilingual outreach has played a crucial role in bridging the information gap in remote and underserved areas.

    The platform’s expansion is part of a larger strategy to democratize access to news and entertainment. Under the Broadcasting Infrastructure and Network Development (BIND) Scheme 2021- 26, Prasar Bharati continues to modernize its transmission infrastructure.

    As part of this initiative, three new transmitters have been approved for Himachal Pradesh- including a 5kW unit in Mandi and 1kW FM transmitters in Chamba and Dharampur.

    With a total outlay of ₹2,539 crore, the BIND scheme aims to modernize All India Radio and Doordarshan facilities, expand FM coverage to over 80 percent of the population, and strengthen signal reach in strategically important border areas.

  • MIL-OSI Submissions: Maritime News – Passenger Ship HANARIA Equipped with Yanmar’s Maritime Hydrogen Fuel Cell System Wins Marine Engineering of the Year 2024

    Source: Yanmar Holdings

    July 23, 2025 – Osaka, Japan – The passenger vessel HANARIA, equipped with Yanmar Power Technology Co., Ltd.’s GH240FC maritime hydrogen fuel cell system, has received the Marine Engineering of the Year 2024 (Dokou Memorial Award). The honor is awarded by the Japan Institute of Marine Engineering for outstanding technological innovation in the field. This year, the award recognized four companies: MOL Techno-Trade, Ltd., HONGAWARA Ship Yard Co., Ltd., Toyota Motor Corporation, and Yanmar Power Technology, a subsidiary of Yanmar Holdings.

    HANARIA is Japan’s first hybrid passenger ship powered by both hydrogen and biodiesel. Operated by MOL Techno-Trade, Ltd., the vessel features Yanmar’s first maritime hydrogen fuel cell system, a proprietary lithium-ion battery system developed by Yanmar, and an integrated management system that controls all onboard power. It features two operating modes: a zero-emission mode using only hydrogen fuel cell systems and lithium-ion batteries, and a hybrid mode that combines hydrogen fuel cells, lithium-ion batteries, and a biodiesel generator running in parallel.

    The onboard systems aim to reduce the environmental footprint of vessels—a challenge in the hard-to-electrify maritime sector—while also enhancing passenger comfort by significantly cutting noise, vibration and exhaust odor.

    Furthermore, HANARIA has been selected for the “Ship of the Year 2024,” an award presented by the Japan Society of Naval Architects and Ocean Engineers that recognizes vessels demonstrating technical, artistic, and social excellence. This marks the first time in history that a vessel has received both the “Marine Engineering of the Year” and the “Ship of the Year” awards.

    The Yanmar Group continues to advance its sustainability goals through its YANMAR GREEN CHALLENGE 2050 initiative and remains committed to providing decarbonization solutions that meet customer needs.

    References

    Press release (November 9, 2023): Yanmar Makes First Delivery of Maritime Hydrogen Fuel Cell System to Hybrid Passenger Ship

    https://www.yanmar.com/global/marinecommercial/news/2023/11/09/130776.html

    Press release (July 9, 2025): Yanmar Maritime Hydrogen Fuel Cell System Wins Red Dot Design Award 2025

    https://www.yanmar.com/global/news/2025/07/09/154079.html

    About Yanmar

    With beginnings in Osaka, Japan, in 1912, Yanmar was the first ever to succeed in making a compact diesel engine of a practical size in 1933. A pioneer in diesel engine technology, Yanmar is a global innovator in a wide range of industrial equipment, from small and large engines, agricultural machinery and facilities, construction equipment, energy systems, marine, to machine tools, and components — Yanmar’s global business operations span seven domains. On land, at sea, and in the city, Yanmar provides advanced solutions to the challenges customers face, towards realizing A Sustainable Future. For more details, please visit the official website of Yanmar Holdings Co., Ltd.

    MIL OSI – Submitted News –

  • MIL-OSI New Zealand: Gumboot Friday supporting young people faster

    Source: New Zealand Government

    Mental Health Minister Matt Doocey joined the Gumboot Friday team today, an initiative that is helping thousands of young people access mental health support faster.

    “We are turning the corner with reducing wait times and increasing the workforce. Initiatives such as Gumboot Friday are helping drive that change,” Mr Doocey says.

    “In the first twelve months of Government funding, Gumboot Friday has been able to scale up and deliver more than 30,000 free counselling sessions. They have supported more than 10,000 young New Zealanders who might not otherwise have access to timely support.”

    Last year, the Government committed $24 million over four years to the Gumboot Friday initiative under the National – New Zealand First coalition agreement to scale up its support for young people across the country.

    “This funding has given certainty moving forward for the organisation, for counsellors delivering the service, and most importantly, for young people who rely on it. It means Gumboot Friday can continue to scale up knowing they are backed by the Government.

    “There are now more than 700 qualified counsellors registered on the Gumboot Friday platform, a 33 per cent increase over the last year. This is an additional 175 counsellors. This has given young people a greater choice of the counsellor they see and has ensured that if someone is reaching out, they are seen when and where they need it.

    “There are not many organisations that can get our young people off waitlists into counselling often within just a few days.

    “The Government is backing Gumboot Friday to deliver more. Funding for 2025/26 will deliver 40,000 individual counselling sessions, reaching as many as 15,000 young New Zealanders.

    “Over the next 12 months, the organisation will be looking at how it can scale up and encourage even more young people to access free counselling.

    “I want to acknowledge the tireless work of the team at I Am Hope. It’s a powerful partnership between Government and a grassroots organisation that’s making a real difference in the lives of many New Zealanders.” 

    MIL OSI New Zealand News –

  • MIL-OSI: David M. Findlay Named to Indianapolis Business Journal’s Indiana 250 List for Fourth Consecutive Year

    Source: GlobeNewswire (MIL-OSI)

    WARSAW, Ind., July 23, 2025 (GLOBE NEWSWIRE) — Lake City Bank is proud to announce that David M. Findlay, Chairman and Chief Executive Officer, has been named to the Indianapolis Business Journal’s Indiana 250 list for the fourth consecutive year. The annual list recognizes the state’s most influential and impactful leaders across business, philanthropy, the arts, government and not-for-profits.

    “It’s an honor to be recognized alongside such influential leaders making an impact in our state,” Findlay said. “This list highlights the incredible depth and strength of leadership we have in Indiana to keep our communities moving forward.”

    Findlay serves as the Chairman of the boards of directors and Chief Executive Officer of Lakeland Financial and Lake City Bank. He also served as President and Chief Executive Officer from 2014-2023, President and Chief Financial Officer from 2010-2014 and Chief Financial Officer from 2000-2010.

    Findlay is active as a board member with many organizations including the Indiana Bankers Association, Indiana Chamber of Commerce, Central Indiana Corporate Partnership, OrthoWorx, Accelinx, the Northeast Indiana Regional Partnership, Parkview Health, Centerfield Capital Partners and the Trine University Board of Trustees.

    A full list of those included on the 2025 Indiana 250 list is available on the Indianapolis Business Journal’s website at www.indiana250.com.

    Lake City Bank, a $6.9 billion bank headquartered in Warsaw, Indiana, was founded in 1872 and serves Central and Northern Indiana communities with 54 branch offices and a robust digital banking platform. Lake City Bank’s community banking model prioritizes building in-market long-term customer relationships while delivering technology-forward solutions for retail and commercial clients. The bank is the single bank subsidiary of Lakeland Financial Corporation (Nasdaq Global Select/LKFN). For more information visit www.lakecitybank.com.

    Contact
    Luke Weick
    Vice President
    Marketing Manager
    (574) 267-9198 x47279 office
    (260) 431-7061 mobile
    luke.weick@lakecitybank.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9db91f9b-e7b5-4a83-9feb-a1016dabf248

    The MIL Network –

  • MIL-Evening Report: As seas rise and fish decline, this Fijian village is finding new ways to adapt

    Source: The Conversation (Au and NZ) – By Celia McMichael, Professor in Geography, The University of Melbourne

    Celia McMichael, CC BY-NC-ND

    In the village of Nagigi, Fiji, the ocean isn’t just a resource – it’s part of the community’s identity. But in recent years, villagers have seen the sea behave differently. Tides are pushing inland. Once abundant, fish are now harder to find. Sandy beaches and coconut trees have been washed away.

    Like many coastal communities, including those across the Pacific Islands region, this village is now under real pressure from climate change and declining fish stocks. Methods of fishing are no longer guaranteed, while extreme weather and coastal erosion threaten homes and land. As one villager told us:

    we can’t find fish easily, not compared to previous times […] some fish species we used to see before are no longer around.

    When stories like this get publicity, they’re often framed as a story of loss. Pacific Islanders can be portrayed as passive victims of climate change.

    But Nagigi’s experience isn’t just about vulnerability. As our new research shows, it’s about the actions people are taking to cope with the changes already here. In response to falling fish numbers and to diversify livelihoods, women leaders launched a new aquaculture project, and they have replanted mangroves to slow the advance of the sea.

    Adaptation is uneven. Many people don’t want to or can’t leave their homes. But as climate change intensifies, change will be unavoidable. Nagigi’s experience points to the importance of communities working collectively to respond to threats.

    Unwelcome change is here

    The communities we focus on, Nagigi village (population 630) and Bia-I-Cake settlement (population 60), are located on Savusavu Bay in Vanua Levu, Fiji’s second largest island. Fishing and marine resources are central to their livelihoods and food security.

    In 2021 and 2023, we ran group discussions (known as talanoa) and interviews to find out about changes seen and adaptations made.

    Nagigi residents have noticed unwelcome changes in recent years. As one woman told us:

    sometimes the sea is coming further onto the land, so there’s a lot of sea intrusion into the plantations, flooding even on land where it never used to be

    Tides are pushing ashore in Nagigi, threatening infrastructure.
    Celia McMichael, CC BY-NC-ND

    In 2016, the devastating Tropical Cyclone Winston destroyed homes and forced some Nagigi residents to move inland to customary mataqali land owned by their clan.

    As one resident said:

    our relocation was smooth because […] we just moved to our own land, our mataqali land.

    But some residents didn’t have access to this land, while others weren’t willing to move away from the coast. One man told us:

    leave us here. I think if I don’t smell or hear the ocean for one day I would be devastated.

    Adaptation is happening

    One striking aspect of adaptation in Nagigi has been the leadership of women, particularly in the small Bia-I-Cake settlement.

    In recent years, the Bia-I-Cake Women’s Cooperative has launched a small-scale aquaculture project to farm tilapia and carp to tackle falling fish stocks in the ocean, tackle rising food insecurity and create new livelihoods.

    Women in the cooperative have built fish ponds, learned how to rear fish to a good size and began selling the fish, including by live streaming the sale. The project was supported by a small grant from the United Nations Development Programme and the Women’s Fund Fiji.

    Recently, the cooperative’s women have moved into mangrove replanting to slow coastal erosion and built a greenhouse to farm new crops.

    As one woman told us, these efforts show women “have the capacity to build a sustainable, secure and thriving community”.

    The community’s responses draw on traditional social structures and values, such as respect for Vanua – the Fijian and Pacific concept of how land, sea, people, customs and spiritual beliefs are interconnected – as well as stewardship of natural resources and collective decision-making through clans and elders, both women and men.

    Nagigi residents have moved to temporarily close some customary fishing grounds to give fish populations a chance to recover. The village is also considering declaring a locally-managed marine area (known as a tabu). This is a response to climate impacts as well as damage to reefs, pollution and overfishing.

    For generations, village residents have protected local ecosystems which in turn support the village. But what is new is how these practices are being strengthened and formalised to respond to new challenges.

    A women’s cooperative have built aquaculture ponds to raise and sell fish.
    Celia McMichael, CC BY-NC-ND

    Adaptation is uneven

    While adaptation is producing some successes, it is unevenly spread. Not everyone has access to customary land for relocation and not every household can afford to rebuild damaged homes.

    What Nagigi teaches us, though, is the importance of local adaptation. Villagers have demonstrated how a community can anticipate risks, respond to change and threats, recover from damage and take advantage of new opportunities.

    Small communities are not just passive sites of loss. They are collectives of strength, agency and ingenuity. As adaptation efforts scale up across the Pacific, it is important to recognise and support local initiatives such as those in Nagigi.

    Sharing effective adaptation methods can give ideas and hope to other communities under real pressure from climate change and other threats.

    Many communities are doing their best to adapt often undertaking community-led adaptation, even despite the limited access Pacific nations have to global climate finance.

    Nagigi’s example shows unwelcome climatic and environmental changes are already arriving. But it’s also about finding ways to live well amid uncertainty and escalating risk by using place, tradition and community.

    The authors acknowledge the support of the people of Nagigi and Bia-I-Cake, and especially the Bia-I-Cake Women’s Cooperative, for sharing their time and insights.

    Celia McMichael receives funding from the Australian Research Council (ARC).

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

    – ref. As seas rise and fish decline, this Fijian village is finding new ways to adapt – https://theconversation.com/as-seas-rise-and-fish-decline-this-fijian-village-is-finding-new-ways-to-adapt-261573

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: From grasslands to killing fields: why trees are bad news for one of Australia’s most stunning birds

    Source: The Conversation (Au and NZ) – By Gabriel Crowley, Adjunct Associate Professor in Geography, University of Adelaide

    JJ Harrison/Wikimedia, CC BY

    Picture this. A small, rainbow-coloured chick emerges from its nest for the first time. It stretches its wings and prepares to take flight. But before the fledgling’s life in the wild has begun, a sharp-beaked predator swoops in, leaving nothing but a tiny skeleton.

    This is the sad scenario playing out on Cape York Peninsula, new analysis shows. There, trees are invading the open, grassy habitat of the endangered golden-shouldered parrot (Psephotellus chrysopterygius). The trees give cover to predators – meaning they can lie in wait, before striking the adult birds and their young.

    The golden-shouldered parrot is endangered, now found in just 5% of its original range. The new findings suggest more work is needed to restore grassland habitat to its former open state, to ensure the parrots’ survival.

    A vanishing species

    The initial decline of the golden-shouldered parrot was likely caused by a loss of food plants and degradation of the termite mounds in which it nests. Birds that remained in two small areas in central Cape York Peninsula faced other issues.

    In the 1990s, researchers began studying the parrot on Artemis Station, to better understand why numbers were declining. A new suspect was identified: native woody plants, such as the broad-leaved tea-tree (Melaleuca viridiflora), which had crept into the birds’ grassy habitat.

    The change was largely due to overgrazing, which reduced fuel loads and led to fewer fires. This allowed the woodland trees to overtake the grasslands. But exactly how were these trees affecting the survival of the golden-shouldered parrot? New research by my colleagues and I set out to answer this question.

    The above image shows the three phases of woodland invading the parrots’ habitat. Left, a few scattered trees establish around the nesting mound. Centre, tea trees emerge from the grass layer. Right, dense thickets of tea trees shade out the termite mounds.
    Gabriel Crowley

    Counting eggs, nest by nest

    We monitored 108 termite-mound nests over three years, tracking the success of 555 eggs. We visited each nest every few days to record whether chicks successfully fledged (grew strong enough to leave the nest) or died.

    We also counted the number of trees around the nests, and recorded signs of interference from predators.

    So what did we find? The proportion of nests that produced a fledgling from every egg decreased in proportion to the number of trees around the nest. The percentage of eggs, chicks and adults that were killed or disappeared from a nest also increased in line with tree numbers.

    That’s because the trees bring different predators – and places for them to hide.

    We suspected reptiles were the main predators. This was due to scratches on the nests and disappearance of eggs without any other signs of damage. While the exact species of reptile predator was hard to pinpoint, we know tree snake numbers increase as woodlands encroach.

    However, of all predators, we found butcherbird numbers increased most strongly as trees crept in. Butcherbirds tear prey apart with their strong, hooked beaks. Trees close to the nests give butcherbirds cover, enabling them to wait for adults or their young to emerge.

    Tragically, we found skulls of chicks pierced by the butcherbirds’ sharp bills. In one case, the shredded flesh of a bird was wedged atop a termite mound.

    Butcherbirds have strong, hooked beaks, which they use to tear apart prey.
    Conservation Partners

    Parrots successfully fledged from just over half of the 555 eggs we monitored.

    In the most dense woodlands, the number of birds that successfully fledged was just one-third of the rate needed to maintain the golden-shouldered parrot’s population.

    Adult birds were lost from one-third of the nests we studied. This is especially troubling. Modelling from similar tropical birds shows this rate of adult deaths can push a species towards extinction.

    Unusually, golden-shouldered parrots nest in termite mounds.
    Peter Valentine

    Restoring the parrots’ grassland home

    The world’s grassland habitats are under threat. This has devastating consequences for species that depend on them – including the golden-shouldered parrot.

    Our findings show Cape York’s grasslands should be maintained and restored to ensure the survival of the golden-shouldered parrot. Much work is needed to ensure the species avoids the fate of its closest relative, the paradise parrot, which is presumed extinct.

    Work is already underway. Golden-shouldered parrot habitat in national parks and on Indigenous-owned land has been destocked, and more traditional Indigenous fire regimes reinstated. This will help maintain open grasslands and reverse early woodland encroachment. Such work is also being undertaken at the study site on Artemis Station.

    Where woody plant invasion is more advanced, more intensive methods have been deployed. At the study site, this includes using chainsaws and brush-cutters to clear trees, before the stump is poisoned.

    Where woody vegetation is well established, trees must be felled to help restore grassland habitat.
    Conservation Partners

    Other measures include installing electric fences to keep out reptiles, reseeding grasslands with food plants and providing feeding stations in seasons when food is scarce.

    Land managers across Cape York have also been provided guidelines for managing woodland encroachment.

    These efforts must be sustained in the long-term, to ensure the golden-shouldered parrot can return to its former range.

    Gabriel Crowley undertook the work cited in this article with Susan Shephard (Artemis Station), Stephen Garnett (Charles Darwin University and Conservation Partners) and Stephen Murphy (Conservation Partners). Funding was provided by the Queensland and federal governments, Gulf Savannah NRM and WWF Australia. Gabriel has provided advice on golden-shouldered parrots and their habitat to the Olkola Aboriginal Corporation, Conservation Partners and Bush Heritage Australia as a volunteer and/or consultant. She is a volunteer for Helen Haines MP (Member for Indi).

    – ref. From grasslands to killing fields: why trees are bad news for one of Australia’s most stunning birds – https://theconversation.com/from-grasslands-to-killing-fields-why-trees-are-bad-news-for-one-of-australias-most-stunning-birds-259898

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Is sleeping a lot actually bad for your health? A sleep scientist explains

    Source: The Conversation (Au and NZ) – By Charlotte Gupta, Senior Postdoctoral Research Fellow, Appleton Institute, HealthWise Research Group, CQUniversity Australia

    Walstrom, Susanne/Getty

    We’re constantly being reminded by news articles and social media posts that we should be getting more sleep. You probably don’t need to hear it again – not sleeping enough is bad for your brain, heart and overall health, not to mention your skin and sex drive.

    But what about sleeping “too much”? Recent reports that sleeping more than nine hours could be worse for your health than sleeping too little may have you throwing up your hands in despair.

    It can be hard not to feel confused and worried. But how much sleep do we need? And what can sleeping a lot really tell us about our health? Let’s unpack the evidence.

    Sleep is essential for our health

    Along with nutrition and physical activity, sleep is an essential pillar of health.

    During sleep, physiological processes occur that allow our bodies to function effectively when we are awake. These include processes involved in muscle recovery, memory consolidation and emotional regulation.

    The Sleep Health Foundation – Australia’s leading not-for-profit organisation that provides evidence-based information on sleep health – recommends adults get seven to nine hours of sleep per night.

    Some people are naturally short sleepers and can function well with less than seven hours.

    However, for most of us, sleeping less than seven hours will have negative effects. These may be short term; for example, the day after a poor night’s sleep you might have less energy, worse mood, feel more stressed and find it harder to concentrate at work.

    In the long term, not getting enough good quality sleep is a major risk factor for health problems. It’s linked to a higher risk of developing cardiovascular disease – such as heart attacks and stroke – metabolic disorders, including type 2 diabetes, poor mental health, such as depression and anxiety, cancer and death.

    So, it’s clear that not getting enough sleep is bad for us. But what about too much sleep?

    Could too much sleep be bad?

    In a recent study, researchers reviewed the results of 79 other studies that followed people for at least one year and measured how sleep duration impacts the risk of poor health or dying to see if there was an overall trend.

    They found people who slept for short durations – less than seven hours a night – had a 14% higher risk of dying in the study period, compared to those who slept between seven and eight hours. This is not surprising given the established health risks of poor sleep.

    However, the researchers also found those who slept a lot – which they defined as more than nine hours a night – had a greater risk of dying: 34% higher than people who slept seven to eight hours.

    This supports similar research from 2018, which combined results from 74 previous studies that followed the sleep and health of participants across time, ranging from one to 30 years. It found sleeping more than nine hours was associated with a 14% increased risk of dying in the study period.

    Research has also shown sleeping too long (meaning more than required for your age) is linked to health problems such as depression, chronic pain, weight gain and metabolic disorders.

    This may sound alarming. But it’s crucial to remember these studies have only found a link between sleeping too long and poor health – this doesn’t mean sleeping too long is the cause of health problems or death.



    Read more:
    If ‘correlation doesn’t imply causation’, how do scientists figure out why things happen?

    So, what’s the link?

    Multiple factors may influence the relationship between sleeping a lot and having poor health.

    It’s common for people with chronic health problems to consistently sleep for long periods. Their bodies may need additional rest to support recovery, or they may spend more time in bed due to symptoms or medication side effects.

    People with chronic health problems may also not be getting high quality sleep, and may stay in bed for longer to try and get some extra sleep.

    Additionally, we know risk factors for poor health, such as smoking and being overweight, are also associated with poor sleep.

    This means people may be sleeping more because of existing health problems or lifestyle behaviours, not that sleeping more is causing the poor health.

    Put simply, sleeping may be a symptom of poor health, not the cause.

    What’s the ideal amount?

    The reasons some people sleep a little and others sleep a lot depend on individual differences – and we don’t yet fully understand these.

    Our sleep needs can be related to age. Teenagers often want to sleep more and may physically need to, with sleep recommendations for teens being slightly higher than adults at eight to ten hours. Teens may also go to bed and wake up later.

    Older adults may want to spend more time in bed. However, unless they have a sleep disorder, the amount they need to sleep will be the same as when they were younger.

    But most adults will require seven to nine hours, so this is the healthy window to aim for.

    It’s not just about how much sleep you get. Good quality sleep and a consistent bed time and wake time are just as important – if not more so – for your overall health.

    The bottom line

    Given many Australian adults are not receiving the recommended amount of sleep, we should focus on how to make sure we get enough sleep, rather than worrying we are getting too much.

    To give yourself the best chance of a good night’s sleep, get sunlight and stay active during the day, and try to keep a regular sleep and wake time. In the hour before bed, avoid screens, do something relaxing, and make sure your sleep space is quiet, dark, and comfortable.

    If you notice you are regularly sleeping much longer than usual, it could be your body’s way of telling you something else is going on. If you’re struggling with sleep or are concerned, speak with your GP. You can also explore the resources on the Sleep Health Foundation website.

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

    – ref. Is sleeping a lot actually bad for your health? A sleep scientist explains – https://theconversation.com/is-sleeping-a-lot-actually-bad-for-your-health-a-sleep-scientist-explains-259991

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Birds use hidden black and white feathers to make themselves more colourful

    Source: The Conversation (Au and NZ) – By Simon Griffith, Professor of Avian Behavioural Ecology, Macquarie University

    The green-headed tanager (_Tangara seledon_) has a hidden layer of plumage that is white underneath the orange feathers and black underneath the blue and green feathers. Daniel Field

    Birds are perhaps the most colourful group of animals, bringing a splash of colour to the natural world around us every day. Indeed, exclusively black and white birds – such as magpies – are in the minority.

    However, new research by a team from Princeton University in the United States has revealed a surprising trick in which birds use those boring black and white feathers to make their colours even more vivid.

    Male golden tanagers (Tangara arthus) have hidden layers of white which make their plumage brighter, while females have hidden layers of black which make their plumage darker.
    Daniel Field

    In the study, published today in Science Advances, Rosalyn Price-Waldman and her colleagues discovered that if coloured feathers are placed over a layer of either white or black underlying feathers, their colours are enhanced.

    A particularly striking discovery was that in some species the different colour of males and females wasn’t due to the colour the two sexes put into the feathers, but rather in the amount of white or black in the layer underneath.

    Why birds are so bright – and how they do it

    Typically, male birds have more vivid colours than females. As Charles Darwin first explained, the most colourful males are more likely to attract mates and produce more offspring than those that aren’t as vivid. This process of “sexual selection” is the evolutionary force that has resulted in most of the colours we see in birds today.

    Evolution is a process that rewards clever solutions in the competition among males to stand out in the crowd. Depositing a layer of black underneath patches of bright blue feathers has enabled males to produce that extra vibrancy that helps them in the competition for mates.

    The blue feathers of a red-necked tanager (Tangara cyanocephala) stand out against a black underlayer.
    Rosalyn Price-Waldman

    The reason the black layer works so well is that it absorbs all the light that passes through the top layer of coloured feathers. The colour we see is blue because those top feathers have a fine structure that scatters light in a particular way, and reflects light in the blue part of the spectrum.

    The feathers appear particularly vivid blue because the light in other wavelengths is absorbed by the under-layer. If the under-layer was paler, some of the light in the other parts of the light spectrum would bounce back and the blue would not “pop out” as much.

    Different tricks for different colours

    Interestingly, in the new study, the researchers found that for yellow feathers the opposite trick works. Yellow feathers contain yellow pigments – carotenoids – and in this case they are enhanced if they have a white under-layer.

    The white layer reflects light that passes through the yellow feathers, and this increases the brightness of these yellow patches, making them more striking in contrast to surrounding patches of colour.

    The red feather tips of a scarlet-rumped tanager (Ramphocelus passerinii) are enhanced by the white feathers beneath them.
    Rosalyn Price-Waldman

    A surprisingly common technique

    The authors focused most of their work on species of tanager, typically very colourful fruit-eating birds that are native to Central and South America.

    However, once they had discovered what was happening in tanagers, they checked to see if it was occurring in other birds.

    The vivid blue colouring of the Australian splendid fairy wren (Malurus splendens) is enhanced by an underlayer of colourless feathers.
    Robbie Goodall / Getty Images

    This additional work revealed that the use of black and white underlying feathers to enhance colour is found in many other bird families, including the Australian fairy wrens which have such vivid blue colouration.

    This widespread use of black and white across so many different species suggests birds have been enhancing the production of colour in this clever way for tens of millions of years, and that it is widely used across birds.

    The color of the vibrant red crown of this red-capped manakin (Ceratopipra mentalis) is magnified by a hidden layer of white plumage.
    Daniel Field

    The study is important because it helps us to understand how complex traits such as colour can evolve in nature. It may also help us to improve the production of vibrant colours in our own architecture, art and fashion.

    Simon Griffith receives funding from the Australian Research Council.

    – ref. Birds use hidden black and white feathers to make themselves more colourful – https://theconversation.com/birds-use-hidden-black-and-white-feathers-to-make-themselves-more-colourful-261567

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Five arms, no heart and a global family: what DNA revealed about the weird deep-sea world of brittle stars

    Source: The Conversation (Au and NZ) – By Tim O’Hara, Senior Curator of Marine Invertebrates, Museums Victoria Research Institute

    A brittle star of the species _Gorgonocephalus eucnemis_. Lagunatic Photo / Getty Images

    You may have read that the deep sea is a very different environment from the land and shallow water. There is no light, it is very cold, and the pressure of all the water above is immense.

    Plants can’t grow there, and the energy powering life mostly comes from organic matter sinking from the sunlit surface. These facts have been known for more than 150 years.

    But I want to tell you something you probably don’t know about the deep sea: for animals on the seafloor, it is a very connected environment. There are few environmental barriers to stop animals slowly expanding their distribution to cover thousands of kilometres. Over a million years, deep-sea animals can spread from Iceland to Tasmania.

    In a new study published today in Nature, we map the distribution and relatedness of a single group of marine animals across all ocean seafloors, from the coast down to the abyssal plains of the deep sea, from the equator to the pole.

    Australia’s ocean research vessel RV Investigator, operated by the CSIRO Marine National Facility, was used to explore deepsea life around Christmas Island in the Indian Ocean.
    Chris Bray / CSIRO, CC BY-NC

    Five arms, no brain, no eyes or heart

    We sequenced the DNA of thousands of animal specimens stored in natural history collections of museums across the globe, deposited from hundreds of research voyages. For the first time, we have enough data to explore how marine life has evolved and dispersed across the oceans over the past 100 million years.

    We studied a group of animals called brittle stars, strange spiny creatures with a disc-like body and five sinuous or branched arms. They have a central mouth and gut, but no brain, no eyes and no heart.

    A branched brittle star (Gorgonocephalus chilensis) specimen taken from Coral Seamount, southwest Indian Ocean.
    Tim O’Hara / Museums Victoria, CC BY

    While these shy animals would not be always familiar to beach combers or snorkelers, they are perfect for our project as they are found in abundance across deep seafloors and frequently surveyed by research expeditions. They have inhabited our planet for more than 480 million years, efficiently consuming and recycling organic matter.

    Deep-sea lifestyles

    Life in the deep is distributed in a different way to that in shallow seas.

    In shallow waters, the temperature differs a lot between the tropics, the temperate regions (mid latitudes) and the poles. This imposes a barrier to the movement of marine life. Animals (and plants) generally adapt to a narrow range of temperatures and only rarely spread to other climates.

    So, if you are a tropical shallow-water species, you cannot migrate through frigid waters around South America, or through the Canadian Arctic, to get from the Pacific to Atlantic Ocean. For tens of millions of years, shallow marine species have evolved independently in different oceans and seas.

    Tropical shallow-water brittle stars such as Ophiothrix purpurea cannot migrate through cold waters.
    Julian Finn / Museums Victoria, CC BY-NC

    But we found the deep sea is not like that. Species in different regions are much more closely related.

    In fact, the age and geographic distribution of species on a family tree of deep-sea brittle stars resembles that of a group of seabirds or marine mammals. Yet these brittle stars don’t have wings or fins to get around.

    The deep-sea brittle star Ophiotholia can burrow like a corkscrew into muddy seafloors.
    Caroline Harding / Museums Victoria, CC BY

    How eggs and larvae roam the globe

    The secret of how slow-moving brittle stars migrate across oceans appears to be their eggs and larvae.

    In warm, shallow waters, a yolk-filled food reserve is rapidly used up by the developing larva. But in the cold deep sea, a yolky larva can survive with very slow metabolic activity, drifting on slow-moving currents for more than a year before settling. This greatly expands the range of a brittle star’s offspring.

    Moreover, there are numerous seamounts, ridges and plains on the oceanic seafloor that offer transit points for long-distance migration at different depths. This dispersal across oceans has been going on for a long time.

    Deep-sea ‘highways’ where brittle stars disperse across the Atlantic and Indian oceans.
    Tim O’Hara / Museums Victoria, CC BY

    The most prominent of these dispersal highways is across the southern Indian Ocean, transporting deep-sea animals from the Atlantic and Southern Oceans to Australia and New Zealand. In contrast, very few shallow-water animals have traversed such vast distances.

    A patchwork of deep-sea life

    While brittle star populations show lots of evidence of long-distance connections, deep-sea communities are not uniform around the planet.

    Life in the deep is perilous. There is always the threat that a given species may be wiped out in particular regions.

    Seawater conditions can change, as can currents and food supplies. New predators or diseases may arrive at any time.

    Over time, the combination of high connectivity and high rates of regional extinction has led to a patchwork of deep-sea species distributions across oceans.

    To conserve these ecosystems into the future, we will need a much better understanding of the global patterns of deep-sea life.

    Tim O’Hara has received funding from CSIRO’s Marine National Facility, Parks Australia, Ocean Census, and from philanthropic support of Museums Victoria Research Institute.

    – ref. Five arms, no heart and a global family: what DNA revealed about the weird deep-sea world of brittle stars – https://theconversation.com/five-arms-no-heart-and-a-global-family-what-dna-revealed-about-the-weird-deep-sea-world-of-brittle-stars-261566

    MIL OSI Analysis – EveningReport.nz –

  • 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 Russia: Thailand downgrades diplomatic ties with Cambodia after border mine incident, Phnom Penh denies allegations

    Translation. Region: Russian Federal

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

    An important disclaimer is at the bottom of this article.

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

    BANGKOK/PHNOM PENH, July 23 (Xinhua) — Thailand downgraded its diplomatic ties with Cambodia on Wednesday after a landmine incident in a border area injured Thai soldiers, with the Cambodian side rejecting Thailand’s accusations.

    Acting Thai Prime Minister Phumtham Vechayachai ordered the downgrading of diplomatic relations, the recall of the Thai ambassador to Cambodia and the expulsion of the Cambodian ambassador, according to a statement released by the Prime Minister’s Office.

    “Thailand will continue to consider the level of bilateral relations with Cambodia,” the document says.

    In addition, Phumtham Vechayachai instructed the country’s Ministry of Foreign Affairs to send a note of protest to Cambodia in connection with the incident.

    Five soldiers were injured in a mine explosion while patrolling the border area, including one with serious leg injuries, the Thai army said. Three Thai soldiers were also injured in a similar mine explosion near the disputed area last week.

    Thai officials said the mines had been planted only recently and accused Cambodia of violating the Anti-Personnel Mine Ban Convention (Ottawa Convention).

    The situation on the Thai-Cambodian border remains tense since a brief exchange of fire between the two sides in the disputed border area in late May left a Cambodian soldier dead.

    Cambodia on Wednesday rejected Thai allegations that Thai troops were injured in a landmine explosion, saying the incident occurred because the Thai side deviated from mutually agreed patrol routes.

    As Deputy Secretary of State and spokesperson for the Cambodian Ministry of Defense Lieutenant General Mali Socheata indicated, the defense ministry completely rejects the baseless accusations made by the Thai side in connection with the injury of five Thai soldiers due to a mine explosion on July 23.

    “Cambodia has repeatedly reminded the Thai side of the presence of large numbers of uncleared mines and explosive remnants of war in these areas and called on the Thai side to avoid violating mutually agreed patrol routes as stipulated in the 2000 memorandum of understanding,” the spokesperson said in a statement.

    Mali Socheata added that the Ministry of Defence and the Royal Cambodian Armed Forces reaffirm their full support for the Cambodian government’s position on resolving the border issue with Thailand through peaceful means and based on international law. –0–

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

    .

    MIL OSI Russia News –

  • MIL-OSI USA: Attorney General Alan Wilson leads 17-state brief supporting efforts to exclude racially or sexually divisive materials from public schoolsRead More

    Source: US State of South Carolina

    (COLUMBIA, S.C.) – South Carolina Attorney General Alan Wilson announced today that he is leading a 17-state effort to support state lawmakers’ efforts to keep racially or sexually divisive materials out of public schools.

    “Our schools are supposed to be places of learning and collaboration, not indoctrination into woke ideologies that assign blame or condemnation based on race or sex,” Attorney General Wilson said.

    The South Carolina legislature passed a budget proviso that says the state Department of Education cannot use state money for any instructional materials that teach that one race or sex is inherently superior to another race or sex, or that someone is inherently racist, sexist, or oppressive by virtue of their race or sex. (You can read the Budget Proviso here.)

    The South Carolina NAACP, two authors, a teacher, and several students filed a lawsuit to block the proviso, arguing that it violates their First Amendment rights. The attorneys general filed a friend-of-the-court brief in that lawsuit supporting lawmakers’ right to decide which materials belong in public schools.

    The attorneys general argue that the Court doesn’t need to endorse the state’s restriction on racially or sexually divisive materials in public schools as sound public policy, only that it needs to follow precedent that says the selection, curation, and placement of educational materials in public schools is a form of government speech.

    “A citizen’s right to receive information under the First Amendment is not a right to compel or extract information from the government at the taxpayers’ expense. Accordingly, there is no First Amendment right to compel state-funded schools to implement certain course curricula or require public school libraries to stock their bookshelves with inflammatory and prejudicial materials,” the attorneys general write in their brief.

    They also argue that the proviso does not prevent anyone from receiving that information, but rather prevents children from accessing the material in public schools at taxpayers’ expense.

    They ask the Court to deny the plaintiffs’ motion for a preliminary injunction and dismiss the case, holding that the plaintiffs are unlikely to succeed on their First Amendment claims.

    Joining Attorney General Wilson in the brief are the attorneys general from Alabama, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, Oklahoma, South Dakota, Texas, Utah, and West Virginia.

    You can read their brief here.

    MIL OSI USA News –

  • MIL-OSI: Silvaco Announces Date of Second Quarter 2025 Financial Results Conference Call

    Source: GlobeNewswire (MIL-OSI)

    SANTA CLARA, Calif., July 23, 2025 (GLOBE NEWSWIRE) — Silvaco Group, Inc. (Nasdaq: SVCO, “Silvaco”), a provider of TCAD, EDA software, and SIP solutions that enable innovative semiconductor design and digital twin modeling through AI software and automation, will release its financial results for the second quarter ended June 30, 2025, after the market close on Wednesday, August 6, 2025. The company will host a conference call at 5:00 p.m. Eastern time to discuss its second quarter 2025 results and full year 2025 outlook.

    A press release highlighting the Company’s results along with supplemental financial results will be available at https://investors.silvaco.com/ along with an earnings presentation to accompany management’s prepared remarks. An archived replay of the conference call will be available on this website for a limited time after the call. Participants who want to join the call and ask a question may register for the call here to receive the dial-in numbers and unique PIN.

    Date: Wednesday, August 6, 2025
    Time: 5:00 p.m. Eastern time
    Webcast: Here (live and replay)

    About Silvaco
    Silvaco is a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and AI through software and innovation. Silvaco’s solutions are used for process and device development across display, power devices, automotive, memory, high-performance compute, foundries, photonics, internet of things, and 5G/6G mobile markets for complex SoC design. Silvaco is headquartered in Santa Clara, California, and has a global presence with offices located in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan.

    Safe Harbor Statement
    This press release contains forward-looking statements based on Silvaco Group, Inc.’s current expectations. The words “believe”, “estimate”, “expect”, “intend”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Silvaco Group, Inc. are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silvaco Group, Inc. and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

    Investor Contact:
    Greg McNiff
    investors@silvaco.com

    Media Contact:
    Tiffany Behany
    press@silvaco.com

    The MIL Network –

  • MIL-OSI: Northrim BanCorp Earns $11.8 Million, or $2.09 Per Diluted Share, in Second Quarter 2025

    Source: GlobeNewswire (MIL-OSI)

    ANCHORAGE, Alaska, July 23, 2025 (GLOBE NEWSWIRE) — Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $11.8 million, or $2.09 per diluted share, in the second quarter of 2025, compared to $13.3 million, or $2.38 per diluted share, in the first quarter of 2025, and $9.0 million, or $1.62 per diluted share, in the second quarter a year ago. The increase in second quarter 2025 profitability as compared to the second quarter a year ago was primarily the result of an increase in net interest income, higher purchased receivable income, and increased mortgage banking income, which were partially offset by a higher provision for credit losses, higher other operating expenses, and a higher provision for income taxes. Net interest income increased primarily due to higher loan balances and higher yields on earning assets. Purchased receivable income increased primarily due to the Company’s acquisition of Sallyport Commercial Finance, LLC (“Sallyport or SCF”), which was completed on October 31, 2024. Sallyport and its direct and indirect subsidiaries provide services and products related to purchased receivable factoring and asset-based lending in the United States, Canada, and the United Kingdom.

    Dividends per share in the second quarter of 2025 remained consistent with the first quarter of 2025 at $0.64 per share as compared to $0.61 per share in the second quarter of 2024.

    “Strong loan growth, increasing asset yields, and stable funding costs drove record net interest income in the second quarter of this year,” said Mike Huston, Northrim’s President and Chief Executive Officer. “We continue to attract new customers to Northrim and believe we have an opportunity to steadily increase our market share over the next few years.”

    Second Quarter 2025 Highlights:

    • Net interest income in the second quarter of 2025 increased 7% to $33.6 million compared to $31.3 million in the first quarter of 2025 and increased 24% compared to $27.1 million in the second quarter of 2024.
    • Net interest margin on a tax equivalent basis (“NIMTE”)* was 4.72% for the second quarter of 2025, up 11-basis points from the first quarter of 2025 and up 42-basis points from the second quarter a year ago.
    • Return on average assets (“ROAA”) was 1.48% and return on average equity (“ROAE”) was 16.37% for the second quarter of 2025 compared to ROAA of 1.76 and ROAE of 19.70 in the prior quarter and ROAA of 1.31% and ROAE of 14.84% for the second quarter of 2024.
    • Portfolio loans were $2.20 billion at June 30, 2025, up 4% from the preceding quarter and up 17% from a year ago, primarily due to new customer relationships and expanding market share, as well as retaining certain mortgages originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”). The Company sold $61 million in consumer mortgages in the second quarter of 2025 that were included in loans held for investment as of the end of 2024 to reduce the concentration of residential real estate loans and to provide additional liquidity for future commercial and construction loan growth.
    • Total deposits were $2.81 billion at June 30, 2025, up 1% from the preceding quarter, and up 14% from $2.46 billion a year ago. Non-interest bearing demand deposits increased 5% from the preceding quarter and increased 10% year-over-year to $777.9 million at June 30, 2025 and represent 28% of total deposits.
    • The average cost of interest-bearing deposits was 2.04% at June 30, 2025, up slightly from 2.01% at March 31, 2025 and down from 2.21% at June 30, 2024.
    • Mortgage loan originations were $277.1 million in the second quarter of 2025, up from $121.6 million in the first quarter of 2025 and up from $181.5 million in the second quarter a year ago. Mortgage loans funded for sale were $249.7 million in the second quarter of 2025, compared to $108.5 million in the first quarter of 2025 and $152.3 million in the second quarter of 2024.
    Financial Highlights Three Months Ended
    (Dollars in thousands, except per share data) June 30, 2025 March 31, 2025 December 31,
    2024    		 September 30,
    2024    		 June 30, 2024
    Total assets $ 3,243,760   $ 3,140,960   $ 3,041,869   $ 2,963,392   $ 2,821,668  
    Total portfolio loans $ 2,202,115   $ 2,124,330   $ 2,129,263   $ 2,007,565   $ 1,875,907  
    Total deposits $ 2,809,170   $ 2,777,977   $ 2,680,189   $ 2,625,567   $ 2,463,806  
    Total shareholders’ equity $ 290,219   $ 279,756   $ 267,116   $ 260,050   $ 247,200  
    Net income $ 11,778   $ 13,324   $ 10,927   $ 8,825   $ 9,020  
    Diluted earnings per share $ 2.09   $ 2.38   $ 1.95   $ 1.57   $ 1.62  
    Return on average assets   1.48 %   1.76 %   1.43 %   1.22 %   1.31 %
    Return on average shareholders’ equity   16.37 %   19.70 %   16.32 %   13.69 %   14.84 %
    NIM   4.66 %   4.55 %   4.41 %   4.29 %   4.24 %
    NIMTE*   4.72 %   4.61 %   4.47 %   4.35 %   4.30 %
    Efficiency ratio   64.68 %   63.54 %   66.96 %   66.11 %   68.78 %
    Total shareholders’ equity/total assets   8.95 %   8.91 %   8.78 %   8.78 %   8.76 %
    Tangible common equity/tangible assets*   7.50 %   7.41 %   7.23 %   8.28 %   8.24 %
    Book value per share $ 52.55   $ 50.67   $ 48.41   $ 47.27   $ 44.93  
    Tangible book value per share* $ 43.35   $ 41.47   $ 39.17   $ 44.36   $ 42.03  
    Dividends per share $ 0.64   $ 0.64   $ 0.62   $ 0.62   $ 0.61  
    Common stock outstanding   5,522,271     5,520,892     5,518,210     5,501,943     5,501,562  
                                   

    * References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (both of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. See the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures.

    Alaska Economic Update
    (Note: sources for information included in this section are included on page 14.)

    The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in May of 2025 was 4.7% compared to the U.S. rate of 4.2%. The rate has held steady in Alaska at 4.7% for eight consecutive months. The total number of payroll jobs in Alaska, not including uniformed military, increased 1.1% or 3,800 jobs between May of 2024 and May of 2025.  

    According to the DOL, the Oil and Gas sector had the largest growth rate in new jobs of 8.8% through May of this year compared to the prior year, up 700 direct jobs. The Construction sector added 700 positions for a year-over-year growth rate of 3.7% through May of 2025. The larger Health Care sector grew by 1,200 jobs for an annual growth rate of 2.9%. Transportation, Warehousing and Utilities added 600 jobs for a 2.3% growth rate over the same period. Professional and Business Services increased 500 jobs year-over-year through May of 2025, up 1.7%.

    The Government sector grew by 200 jobs for 0.2% growth, adding 400 State positions while losing 200 Federal jobs in Alaska over the same period. Declining sectors between May 2024 and May 2025 were Information down 100 jobs or (-2.3%), Manufacturing (primarily seafood processing) shrinking 200 positions (-2.1%), Wholesale Trade lost 100 jobs (-1.5%) and Financial Activities, down 100 jobs (-0.9%).

    Alaska’s seasonally adjusted personal income was $57.4 billion in the first quarter of 2025 according to the Federal Bureau of Economic Analysis (“BEA”). This was an annualized improvement in the first quarter of 6.4% for Alaska, compared to the national average of 6.7%. Alaska enjoyed an annual personal income improvement of 6% in 2024 compared to the U.S. increase of 5.4%, ranking Alaska 6th best in the nation. The $885 million increase in personal income in the first quarter of 2025 in Alaska came from a $352 million increase in net earnings from wages, $440 million growth in government transfer receipts, and a $92 million increase in investment income.

    Alaska’s Gross State Product (“GSP”) in the first quarter of 2025 reached $72 billion according to the BEA. Alaska’s inflation adjusted “real” GSP increased 1.5% in 2024 and decreased -1.8% annualized in the first quarter of 2025. The average U.S. GDP growth rate was 2.8% for 2025 and -0.5% in the first quarter of 2025. Alaska’s real GSP decrease in the first quarter of 2025 was primarily caused by a decrease in the Mining, Oil & Gas sector, somewhat offset by improvements in the Construction sector.

    Alaska exported $5.9 billion in goods to foreign countries in 2024 according to the U.S. International Trade Administration. China is the largest importer of Alaska’s products at $1.5 billion, followed by Australia at $804 million, Japan at $674 million and South Korea at $634 million in 2024. Fish and related maritime products accounted for the largest volume at $2.1 billion, followed by minerals and ores at $2 billion, and primary metals at $992 million in 2024. Oil & Gas exports are $380 million because the majority of Alaska’s production is refined and consumed in the United States. Chief Credit Officer and Bank Economist Mark Edwards stated, “President Trump’s significant changes to international tariffs has created uncertainty in trade markets. At this time, it is unknown how each country will respond. Alaska’s natural resources are highly valued commodities throughout the world. If issues arise with one country, such as China, it is most likely that Alaska’s products will be redirected to other markets like Japan and South Korea or sold domestically in the United States. Canada is the largest long-term investor in Alaska’s mining industry. This involves significant fixed capital investments made over decades that are unlikely to shift dramatically in the short-run. Alaska’s Legislature just passed a bill HJR-11 with an approval vote of 33-4 titled, Recognizing and honoring the relationship between Canada and Alaska. It highlights the deeply interconnected friendship between Alaska and Canada culturally, economically, and militarily.”

    According to the US Bureau of Labor Statistics, the Consumer Price Index (“CPI”) for the U.S. increased 2.7% between June of 2024 and June of 2025. In Alaska, the rate of CPI increase was lower at 1.6% for the same time period.   Food and beverage, housing costs, and medical care costs were the largest causes for inflation. Declining motor fuel prices, transportation, recreation and household furnishing costs have helped moderate inflationary pressures in Alaska.

    The monthly average price of Alaska North Slope (“ANS”) crude oil has ranged between $76.39 a barrel in January of 2025 and $67.07 in May of the prior year. The June 2025 average was $72.62. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 461 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2024.   Production rose to 469 thousand bpd in fiscal year ending June 30, 2025.   In the Spring 2025 Revenue Forecast published March 12, 2025, the DOR expects production to continue to grow to 663 thousand bpd by fiscal year 2034. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay. A partnership between Santos and Repsol is constructing the new Pikka field and ConocoPhillips is developing the large new Willow field. There are also a number of smaller new fields in the ANS that are contributing to the State of Alaska’s production growth estimates.

    The Alaska Permanent Fund is seeded annually by the oil wealth the State continues to save each year and has grown significantly over 40 years of successful investment. As of May 31, 2025 the fund’s value was $83.13 billion. According to the DOR it is scheduled to contribute $3.7 billion to Alaska General Fund in fiscal year 2025 for general government spending and to pay the annual dividend to Alaskan residents.

    According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 6.2% in 2024 to $510,064, following a 5.2% increase in 2023. This was the seventh consecutive year of price increases. Through June of 2025 prices have continued to increase on average 2.6% to $523,059.

    The average sales price for single family homes in the Matanuska Susitna Borough rose 3.8% in 2024 to $412,859, after increasing 4% in 2023. This continues a trend of average price increases for more than a decade in the region. Through June of 2025 prices have continued to increase on average 6.9% to $441,463. These two markets represent where the vast majority of the Bank’s residential lending activity occurs.

    The Alaska Multiple Listing Services reported a 3.4% increase in the number of units sold in Anchorage when comparing 2024 to 2023. The first six months of 2025 has seen a 4.8% increase in home sales compared to the first half of 2024 in Anchorage.  

    There was virtually no change in the number of homes sold in the Matanuska Susitna Borough, with only four fewer homes sold in 2024 than in 2023 or -0.2%. In the first six months of 2025 the number of units sold has increased 13.1% in the Matanuska Susitna Borough compared to the first half of 2024.

    Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.

    Review of Income Statement

    Consolidated Income Statement

    In the second quarter of 2025, Northrim generated a ROAA of 1.48% and a ROAE of 16.37%, compared to 1.76% and 19.70%, respectively, in the first quarter of 2025 and 1.31% and 14.84%, respectively, in the second quarter a year ago.

    Net Interest Income/Net Interest Margin

    Net interest income increased 7% to $33.6 million in the first quarter of 2025 compared to $31.3 million in the first quarter of 2025 and increased 24% compared to $27.1 million in the second quarter of 2024.   Interest expense on deposits increased to $10.3 million in the second quarter of 2025 compared to $9.9 million in the first quarter of 2025 and compared to $9.5 million in the second quarter of 2024.

    NIMTE* was 4.72% in the second quarter of 2025 up from 4.61% in the preceding quarter and 4.30% in the second quarter a year ago. NIMTE* increased 42 basis points in the second quarter of 2025 compared to the second quarter of 2024 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, higher yields on those assets as variable rate loans reset at higher rates which were only partially offset by an increase in borrowings. The weighted average interest rate for new loans booked in the second quarter of 2025 was 7.27% compared to 7.30% in the first quarter of 2025 and 7.90% in the second quarter a year ago. The yield on the investment portfolio in the second quarter of 2025 increased to 3.07% from 2.97% in the first quarter of 2025 and 2.82% in the second quarter of 2024. “We are continuing to see some benefits from the repricing of our loan portfolio and new production increasing our margin” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE* continues to remain above the peer average of 3.26% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of March 31, 2025.

    Provision for Credit Losses

    Northrim recorded a provision for credit losses of $2.0 million in the second quarter of 2025, which was comprised of a provision for credit losses on loans of $1.8 million, a $157,000 provision for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $18,000. This compares to a benefit to the provision for credit losses of $1.4 million in the first quarter of 2025, which was comprised of a benefit to the provision for credit losses on loans of $1.1 million, a $322,000 benefit for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $46,000. In the second quarter a year ago, Northrim recorded a benefit to the provision for credit losses of $120,000 which was comprised of a $134,000 provision for credit losses on loans and a $254,000 benefit to the provision for credit losses on unfunded commitments.

    The increase to the provision for credit losses on loans in the second quarter of 2025 as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances as well as an increase in estimated loss rates due to less favorable economic forecasts and trends in qualitative factors. The increase to the provision for unfunded commitments in the second quarter of 2025 was primarily due to an increase in estimated loss rates which was only partially offset by changes in mix of unfunded commitments.

    Nonperforming assets, net of government guarantees, decreased during the quarter to $11.9 million at June 30, 2025, compared to $12.3 million at March 31, 2025, and increased compared to $5.1 million at June 30, 2024. The increase in nonperforming assets, net of government guarantees at June 30, 2025 compared to June 30, 2024 is primarily the result of the acquisition of Sallyport in the fourth quarter of 2024.

    The allowance for credit losses on loans was 290% of nonperforming loans, net of government guarantees, at the end of the second quarter of 2025, compared to 262% three months earlier and 365% a year ago.

    Other Operating Income

    In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $16.6 million, or 33% of total second quarter 2025 revenues, as compared to $13.0 million, or 29% of revenues in the first quarter of 2025, and $9.6 million, or 26% of revenues in the second quarter of 2024. The increase in other operating income in the second quarter of 2025 as compared to the second quarter of 2024 was primarily the result of increased purchased receivable income due to the Company’s acquisition of Sallyport on October 31, 2024. Mortgage banking income in the second quarter of 2025 increased as compared to the first quarter of 2025 and second quarter of 2024 due to a higher volume of mortgage activity. See further discussion regarding mortgage activity contained under “Home Mortgage Lending” below.  

    Other Operating Expenses

    Operating expenses were $32.5 million in the second quarter of 2025, compared to $28.2 million in the first quarter of 2025, and $25.2 million in the second quarter of 2024. The increase in other operating expenses in the second quarter of 2025 compared to the first quarter of 2025 was primarily due to an increase in salaries and other personnel expense, including $980,000 in higher mortgage commissions expense due to higher mortgage volume, $763,000 in higher salary expense, a $760,000 increase in group medical expenses, and increases in profit share expense and payroll taxes. Additionally, marketing expense increased due to timing of annual charitable contributions. The increase in total other operating expenses in the second quarter of 2025 compared to the second quarter a year ago was primarily due to an increase in salaries and other personnel expense, the increase in compensation expense for Sallyport acquisition payments, and an increase in data processing expense. Total other operating expense increased $2.1 million in the Specialty Finance segment in the second quarter of 2025 compared to the second quarter of 2024 due to the acquisition of Sallyport on October 31, 2024.

    Income Tax Provision

    In the second quarter of 2025, Northrim recorded $4.0 million in state and federal income tax expense for an effective tax rate of 25.3%, compared to $4.3 million, or 24.2% in the first quarter of 2025 and $2.5 million, or 21.9% in the second quarter a year ago. The increase in the tax rate in the second quarter of 2025 as compared to the first quarter of 2025 and second quarter of 2024 is primarily the result of a decrease in tax credits and tax exempt interest income as a percentage of pre-tax income in 2025 as compared to 2024.

    Community Banking

    Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as ‘distressed or underserved non-metropolitan middle-income geographies’.

    Net interest income in the Community Banking segment totaled $30.0 million in the second quarter of 2025, compared to $28.2 million in the first quarter of 2025 and $24.3 million in the second quarter of 2024. Net interest income increased $5.7 million or 23% in the second quarter of 2025 as compared to the second quarter of 2024 mostly due to higher interest income on loans. This increase was only partially offset by lower interest income on investments and higher interest expense on deposits and borrowings.

    The provision for credit losses in the Community Banking segment was $1.3 million in the second quarter of 2025 compared to a benefit to the provision for credit losses of $1.8 million in the first quarter of 2025 and a benefit to the provision for credit losses of $184,000 in the same quarter a year ago. The increase to the provision for credit losses in the Community Banking segment in the second quarter of 2025 as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances as well as an increase in estimated loss rates due to less favorable economic forecasts and trends in qualitative factors. In the first quarter of 2025, the Company recorded a net benefit for credit losses in the Community Banking segment primarily due to changes in the Company’s loss rate regression models for commercial, commercial real estate, and construction loans. These decreases in the provision were only partially offset by increases in estimated loss rates for management’s assessment of economic conditions and an increase for higher loan balances.

    Other operating expenses in the Community Banking segment totaled $21.8 million in the second quarter of 2025, up $3.2 million or 17% from $18.6 million in the first quarter of 2025, and up $3.7 million or 20% from $18.1 million in the second quarter a year ago. The increase in the second quarter of 2025 as compared to the prior quarter and compared to the same quarter a year ago was primarily due to increases in salaries and other personnel expense, including $667,000 in higher salary expense, an $873,000 increase in group medical expenses, as well as increases in profit share expense and payroll taxes. Additionally, marketing expense increased due to timing of annual charitable contributions.

    The following tables provide highlights of the Community Banking segment of Northrim:

      Three Months Ended
    (Dollars in thousands, except per share data) June 30, 2025 March 31, 2025 December 31,
    2024    		 September 30,
    2024    		 June 30, 2024
    Net interest income $ 29,971 $ 28,151   $ 27,643 $ 25,928 $ 24,318  
    (Benefit) provision for credit losses   1,319   (1,768 )   771   1,492   (184 )
    Other operating income   3,268   2,703     2,535   3,507   2,451  
    Other operating expense   21,764   18,581     19,116   18,723   18,069  
    Income before provision for income taxes   10,156   14,041     10,291   9,220   8,884  
    Provision for income taxes   2,413   3,253     1,474   2,133   1,786  
    Net income $ 7,743 $ 10,788   $ 8,817 $ 7,087 $ 7,098  
    Weighted average shares outstanding, diluted   5,611,558   5,608,102     5,597,889   5,583,055   5,558,580  
    Diluted earnings per share attributable to Community Banking $ 1.37 $ 1.93   $ 1.58 $ 1.26 $ 1.27  
      Year-to-date
    (Dollars in thousands, except per share data) June 30, 2025 June 30, 2024
    Net interest income $ 58,122   $ 48,533
    (Benefit) provision for credit losses   (449 )   13
    Other operating income   5,971     4,919
    Other operating expense   40,345     35,247
    Income before provision for income taxes   24,197     18,192
    Provision for income taxes   5,666     3,752
    Net income Community Banking segment $ 18,531   $ 14,440
    Weighted average shares outstanding, diluted   5,611,734     5,562,025
    Diluted earnings per share $ 3.30   $ 2.59


    Home Mortgage Lending

    During the second quarter of 2025, mortgage loans funded for sale were $249.7 million, compared to $108.5 million in the first quarter of 2025, and $152.3 million in the second quarter of 2024.

    During the second quarter of 2025, the Bank purchased loans of $27.5 million from its subsidiary, Residential Mortgage, of which approximately half were jumbos, one-quarter were mortgages for second homes, and one-quarter were adjustable rate mortgages, with a weighted average interest rate of 6.71%, as compared to $13.1 million and 6.39% in the first quarter of 2025, and $29.2 million and 6.82% in the second quarter of 2024. Net interest income contributed $3.5 million to total Home Mortgage Lending revenue in the second quarter of 2025, up from $3.0 million in the prior quarter, and up from $2.8 million in the second quarter a year ago.

    The Company reclassified $100 million in consumer mortgages held for investment to held for sale in the first quarter of 2025 and recorded unrealized losses of $1.2 million related to this portfolio in the first quarter of 2025. In the second quarter of 2025, the Company sold $61 million of the $100 million that was reclassified to loans held for sale in the first quarter of 2025 for a total realized loss of $545,000.

    The Arizona, Colorado, and Pacific Northwest mortgage expansion markets were responsible for 22% of Residential Mortgage’s $216 million total production in the second quarter of 2025 (excluding the $61 million in mortgages sold noted above), 20% of $122 million total production in the first quarter of 2025, and 22% of $182 million total production in the second quarter of 2024.

    The provision for credit losses in the Home Mortgage Lending segment was $639,000 in the second quarter of 2025 compared to a benefit to the provision for credit losses of $307,000 in the first quarter of 2025 and a provision for credit loses of $64,000 in the second quarter of 2024. The increase in the provision for credit losses in the second quarter of 2025 in the Home Mortgage Lending segment as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances. The benefit to the provision for loan losses in the Home Mortgage Lending segment in the first quarter of 2025 was primarily the result of the reclassification of $100 million in mortgage loans to loans held for sale, which was only partially offset by an increase in the provision for loan losses due to changes in the Company’s loss rate regression models for home mortgage loans.

    The net change in fair value of mortgage servicing rights decreased mortgage banking income by $818,000 during the second quarter of 2025 compared to a decrease of $855,000 for the first quarter of 2025 and a decrease of $81,000 for the second quarter of 2024. Mortgage servicing revenue increased to $3.0 million in the second quarter of 2025 from $2.7 million in the prior quarter and increased from $2.2 million in the second quarter of 2024 due to an increase in production of Alaska Housing Finance Corporation (AHFC) mortgages, which contribute to servicing revenues at origination. In the second quarter of 2025, the Company’s servicing portfolio increased $69.3 million compared to a $24.0 million increase in the first quarter of 2025, and an increase of $41.8 million in the second quarter of 2024.

    As of June 30, 2025, Northrim serviced 6,458 loans in its $1.55 billion home-mortgage-servicing portfolio, a 5% increase compared to the $1.48 billion serviced as of the end of the first quarter of 2025, and a 41% increase from the $1.10 billion serviced a year ago.

    The following tables provide highlights of the Home Mortgage Lending segment of Northrim:

      Three Months Ended
    (Dollars in thousands, except per share data) June 30,
    2025    		 March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024
    Mortgage commitments $ 73,198   $ 68,258   $ 32,299   $ 77,591   $ 88,006  
               
    Mortgage loans funded for sale $ 249,680   $ 108,499   $ 162,530   $ 209,960   $ 152,339  
    Mortgage loans funded for investment   27,455     13,061     23,380     38,087     29,175  
    Total mortgage loans funded $ 277,135   $ 121,560   $ 185,910   $ 248,047   $ 181,514  
    Mortgage loan refinances to total fundings   10 %   11 %   11 %   6 %   6 %
    Mortgage loans serviced for others $ 1,553,987   $ 1,484,714   $ 1,460,720   $ 1,166,585   $ 1,101,800  
               
    Net realized and unrealized gains on mortgage loans sold and held for sale $ 5,091   $ 1,580   $ 3,747   $ 5,079   $ 3,189  
    Change in fair value of mortgage loan commitments, net   (110 )   660     (665 )   60     390  
    Total production revenue   4,981     2,240     3,082     5,139     3,579  
    Mortgage servicing revenue   2,957     2,696     2,847     2,583     2,164  
    Change in fair value of mortgage servicing rights:          
    Due to changes in model inputs of assumptions1   (355 )   (322 )   1,372     (566 )   239  
    Other2   (463 )   (533 )   (499 )   (402 )   (320 )
    Total mortgage servicing revenue, net   2,139     1,841     3,720     1,615     2,083  
    Other mortgage banking revenue   280     170     238     293     222  
    Total mortgage banking income $ 7,400   $ 4,251   $ 7,040   $ 7,047   $ 5,884  
               
    Net interest income $ 3,507   $ 3,046   $ 3,280   $ 2,941   $ 2,775  
    Provision (benefit) for credit losses   639     (307 )   305     571     64  
    Mortgage banking income   7,400     4,251     7,040     7,047     5,884  
    Other operating expense   7,593     6,490     7,198     7,643     6,697  
    Income before provision for income taxes   2,675     1,114     2,817     1,774     1,898  
    Provision for income taxes   746     310     842     497     532  
    Net income $ 1,929   $ 804   $ 1,975   $ 1,277   $ 1,366  
               
    Weighted average shares outstanding, diluted   5,611,558     5,608,102     5,597,889     5,583,055     5,558,580  
    Diluted earnings per share attributable to Home Mortgage Lending $ 0.34   $ 0.14   $ 0.35   $ 0.23   $ 0.25  

    1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.

      Year-to-date
    (Dollars in thousands, except per share data) June 30, 2025 June 30, 2024
    Mortgage loans funded for sale $ 358,179   $ 236,663  
    Mortgage loans funded for investment   40,516     46,578  
    Total mortgage loans funded $ 398,695   $ 283,241  
    Mortgage loan refinances to total fundings   10 %   6 %
         
    Net realized and unrealized gains on mortgage loans sold and held for sale $ 6,671   $ 5,168  
    Change in fair value of mortgage loan commitments, net   550     777  
    Total production revenue   7,221     5,945  
    Mortgage servicing revenue   5,653     3,725  
    Change in fair value of mortgage servicing rights:    
    Due to changes in model inputs of assumptions1   (677 )   528  
    Other2   (996 )   (634 )
    Total mortgage servicing revenue, net   3,980     3,619  
    Other mortgage banking revenue   450     351  
    Total mortgage banking income $ 11,651   $ 9,915  
         
    Net interest income $ 6,553   $ 5,007  
    Provision for credit losses   332     16  
    Mortgage banking income   11,651     9,915  
    Other operating expense   14,083     12,783  
    Income before provision for income taxes   3,789     2,123  
    Provision for income taxes   1,056     595  
    Net income Home Mortgage Lending segment $ 2,733   $ 1,528  
         
    Weighted average shares outstanding, diluted   5,611,734     5,562,025  
    Diluted earnings per share $ 0.48   $ 0.28  

    1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.

    Specialty Finance

    The Company’s Specialty Finance segment includes Northrim Funding Services and Sallyport. Northrim Funding Services is a division of the Bank and has offered factoring solutions to small businesses since 2004. Sallyport is a leading provider of factoring, asset-based lending and alternative working capital solutions to small and medium sized enterprises in the United States, Canada, and the United Kingdom that the Company acquired on October 31, 2024 in an all cash transaction valued at approximately $53.9 million. The composition of revenues for the Specialty Finance segment are primarily purchased receivable income, but also includes interest income from loans and other fee income.

    The acquisition of Sallyport included $1.1 million in one-time deal related costs which are reflected in other operating expenses for the fourth quarter of 2024 in the tables below. Total pre-tax income for Sallyport for the second quarter of 2025 was $1.3 million compared to $1.3 million in the first quarter of 2025 and $945,000 for the two months of operations in the fourth quarter of 2024, excluding transaction costs.

    Average purchased receivables and loan balances at Sallyport were $71.0 million for the second quarter of 2025 with a yield of 27.23% compared to average balances of $59.9 million for the first quarter of 2025 and a yield of 35.8%. The yield in the first quarter of 2025 included the recognition of $899,000 in nonaccrual fee income collected during the quarter related to two nonperforming receivables and the collection of a $350,000 line termination fee. The yield excluding these items for the first quarter of 2025 was 27.4%.

    The following tables provide highlights of the Specialty Finance segment of Northrim:

      Three Months Ended
    (Dollars in thousands, except per share data) June 30,
    2025    		 March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024
    Purchased receivable income $ 5,897 $ 6,150   $ 3,526   $ 1,033 $ 1,242
    Other operating income   75   (64 )   (68 )   —   —
    Interest income   782   596     407     158   170
    Total revenue   6,754   6,682     3,865     1,191   1,412
    Provision for credit losses   18   666     125     —   —
    Compensation expense – SCF acquisition payments   600   600     —     —   —
    Other operating expense   2,531   2,500     3,063     362   428
    Interest expense   668   496     489     185   210
    Total expense   3,817   4,262     3,677     547   638
    Income before provision for income taxes   2,937   2,420     188     644   774
    Provision for income taxes   831   688     53     183   218
    Net income Specialty Finance segment $ 2,106 $ 1,732   $ 135   $ 461 $ 556
    Weighted average shares outstanding, diluted   5,611,558   5,608,102     5,597,889     5,583,055   5,558,580
    Diluted earnings per share attributable to Specialty Finance $ 0.38 $ 0.31   $ 0.02   $ 0.08 $ 0.10
      Year-to-date
    (Dollars in thousands, except per share data) June 30, 2025 June 30, 2024
    Purchased receivable income $ 12,047 $ 2,587
    Other operating income   11   —
    Interest income   1,378   382
    Total revenue   13,436   2,969
    Provision for credit losses   684   —
    Compensation expense – SCF acquisition payments   1,200   —
    Other operating expense   5,031   802
    Interest expense   1,164   422
    Total expense   8,079   1,224
    Income before provision for income taxes   5,357   1,745
    Provision for income taxes   1,519   494
    Net income Specialty Finance segment $ 3,838 $ 1,251
    Weighted average shares outstanding, diluted   5,611,734   5,562,025
    Diluted earnings per share $ 0.69 $ 0.23


    Balance Sheet Review

    Northrim’s total assets were $3.24 billion at June 30, 2025, up 3% from the preceding quarter and up 15% from a year ago. Northrim’s loan-to-deposit ratio was 78% at June 30, 2025, up from 76% at both March 31, 2025 and June 30, 2024.

    At June 30, 2025, liquid assets, investments, and loans maturing within one year were $1.15 billion and our funds available for borrowing under our existing lines of credit were $507.9 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.

    Average interest-earning assets were $2.89 billion in the second quarter of 2025, up 4% from $2.78 billion in the first quarter of 2025 and up 12% from $2.57 billion in the second quarter a year ago. The average yield on interest-earning assets was 6.27% in the second quarter of 2025, up from 6.10% in the preceding quarter and up from 5.83% in the second quarter of 2024.

    Average investment securities decreased to $515.9 million in the second quarter of 2025, compared to $523.8 million in the first quarter of 2025 and $640.0 million in the second quarter a year ago. The average net tax equivalent yield on the securities portfolio was 3.07% for the second quarter of 2025, up from 2.97% in the preceding quarter and up from 2.82% in the year ago quarter. The average estimated duration of the investment portfolio at June 30, 2025, was approximately 2.4 years compared to approximately 2.5 years at June 30, 2024. As of June 30, 2025, $55.7 million of available for sale securities with a weighted average yield of 1.40% are scheduled to mature in the next six months, $106.8 million with a weighted average yield of 1.28% are scheduled to mature in six months to one year, and $145.0 million with a weighted average yield of 1.96% are scheduled to mature in the following year, representing a total of $307.5 million or 11% of earning assets that are scheduled to mature in the next 24 months.

    Total unrealized losses, net of tax, on available for sale securities decreased by $1.9 million in the second quarter of 2025 resulting in total unrealized loss, net of tax, of $3.6 million compared to $5.5 million at March 31, 2025, and $15.2 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.3 years. Total unrealized losses on held to maturity securities were $711,000 at June 30, 2025, compared to $1.1 million at March 31, 2025, and $3.0 million a year ago.

    Average interest bearing deposits in other banks decreased to $27.2 million in the second quarter of 2025 from $38.0 million in the first quarter of 2025 and increased from $17.4 million in the second quarter of 2024, as cash was used to fund loan growth and provide liquidity.

    Loans held for sale decreased to $127.1 million at June 30, 2025, compared to $159.6 million at March 31, 2025, largely due to the sale of $61 million consumer mortgage loans in the second quarter of 2025 that had been reclassified to loans held for sale from portfolio loans in the first quarter of 2025, and increased from $85.9 million a year ago, due to higher loan production by Residential Mortgage.

    Portfolio loans were $2.20 billion at June 30, 2025, up 4% from the preceding quarter and up 17% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $2.00 billion at June 30, 2025, up $59.1 million or 3% from the preceding quarter and up 21% from a year ago. This increase in the second quarter of 2025 was diversified throughout the loan portfolio including consumer mortgage loans increasing by $19 million, construction loans increasing by $31.2 million, commercial real estate owner-occupied loans increasing $17.1 million, and nonowner-occupied commercial real estate and multi-family loans increasing by $6.5 million from the preceding quarter. These increases were partially offset by a $3.8 million decrease in commercial loans. Average portfolio loans in the second quarter of 2025 were $2.17 billion, which was consistent with the preceding quarter after the sale of $61 million in consumer mortgage loans, and up 18% from a year ago. Yields on average portfolio loans in the second quarter of 2025 increased to 6.99% from 6.89% in the first quarter and increased from 6.87% in the second quarter of 2024. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.45% in the second quarter of 2025 as compared to 7.43% in the first quarter of 2025 and 8.26% in the second quarter of 2024.

    Northrim’s loans and credit lines are subject to approval procedures and amount limitations. These limitations apply to the borrower’s total outstanding indebtedness and commitments to us, including the indebtedness of any guarantor. Generally, Northrim is permitted to make loans to one borrower of up to 15% of the unimpaired capital and surplus of the Bank. The legal lending limit was $39.4 million at June 30, 2025. At June 30, 2025, Northrim had 22 relationships totaling $504.0 million in portfolio loans whose total direct and indirect commitments were greater than 50% of the legal lending limit.

    Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.81 billion at June 30, 2025, up 1% from $2.78 billion at March 31, 2025, and up 14% from $2.46 billion a year ago. “The increase in deposits in the second quarter of 2025 was consistent with our customers’ normal business cycles which typically result in increases in deposit balances in the second and third quarters and decreases in the first and fourth quarters,” said Ballard. At June 30, 2025, 75% of total deposits were held in business accounts and 25% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $60,000 as of June 30, 2025. Northrim had 27 customers with balances over $10 million as of June 30, 2025, which accounted for $731.1 million, or 27%, of total deposits. Demand deposits increased by 5% from the prior quarter and increased 10% from the prior year to $777.9 million at June 30, 2025. Demand deposits were 28% of total deposits at June 30, 2025 up from 27% at March 31, 2025 and were down from 29% of total deposits at June 30, 2024. Average interest-bearing deposits were up 1% to $2.03 billion with an average cost of 2.04% in the second quarter of 2025, compared to $2.00 billion and an average cost of 2.01% in the first quarter of 2025, and up 18% compared to $1.73 billion and an average cost of 2.21% in the second quarter of 2024. Uninsured deposits totaled $1.02 billion or 36% of total deposits as of June 30, 2025 compared to $1.08 billion or 40% of total deposits as of December 31, 2024.

    Shareholders’ equity was $290.2 million, or $52.55 book value per share, at June 30, 2025, compared to $279.8 million, or $50.67 book value per share, at March 31, 2025 and $247.2 million, or $44.93 book value per share, a year ago. Tangible book value per share* was $43.35 at June 30, 2025, compared to $41.47 at March 31, 2025, and $42.03 per share a year ago. The increase in shareholders’ equity in the second quarter of 2025 as compared to the first quarter of 2025 was largely the result of earnings of $11.8 million and an increase in the fair value of the available for sale securities portfolio, which increased $1.9 million, net of tax, which were only partially offset by dividends paid of $3.6 million. The Company did not repurchase any shares of common stock in the second quarter of 2025 and currently has no plans to repurchase shares this year. Tangible common equity to tangible assets* was 7.50% as of June 30, 2025, compared to 7.41% as of March 31, 2025 and 8.24% as of June 30, 2024. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 9.80% at June 30, 2025, compared to 9.76% at March 31, 2025, and 11.68% at June 30, 2024.

    Asset Quality

    Northrim believes it has a consistent lending approach throughout economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management.

    Nonperforming assets (“NPAs”) net of government guarantees were $11.9 million at June 30, 2025, down from $12.3 million at March 31, 2025 and up from $5.1 million a year ago. Of the NPAs at June 30, 2025, $4.2 million are attributable to the Community Banking segment and $7.5 million are attributable to the Specialty Finance segment.

    Net adversely classified loans were $35.8 million at June 30, 2025, as compared to $20.4 million at March 31, 2025, and $7.1 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. The increase in adversely classified loans, net of government guarantees, at June 30, 2025 as compared to the prior quarter is mostly attributable to two commercial relationships totaling $16.0 million. Net loan charge-offs were $140,000 in the second quarter of 2025, compared to net loan recoveries of $34,000 in the first quarter of 2025, and net loan recoveries of $26,000 in the second quarter of 2024. Additionally, Northrim had 13 loan modifications to borrowers experiencing financial difficulty totaling $3.3 million, net of government guarantees that had been modified in the last twelve months as of June 30, 2025.

    Northrim had $141.2 million, or 6% of portfolio loans, in the Healthcare sector, $127.2 million, or 6% of portfolio loans, in the Tourism sector, $121.0 million, or 5% of portfolio loans, in the Accommodations sector, $93.4 million, or 4% of portfolio loans, in the Retail sector, $84.2 million, or 4% of portfolio loans, in the Aviation (non-tourism) sector, $76.2 million, or 3% of portfolio loans, in the Fishing sector, and $59.5 million, or 3% in the Restaurants and Breweries sector as of June 30, 2025.

    Northrim estimates that $105.9 million, or approximately 5% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of June 30, 2025, and $1.5 million of these loans are adversely classified. As of June 30, 2025, Northrim has an additional $76.9 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and no unfunded commitments on adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.

    About Northrim BanCorp

    Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state and differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. The Bank has two wholly-owned subsidiaries, Sallyport Commercial Finance, LLC, a specialty finance company and Residential Mortgage Holding Company, LLC, a regional home mortgage company. Pacific Wealth Advisors, LLC is an affiliated company.

    www.northrim.com

    Forward-Looking Statement

    This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: descriptions of Northrim’s and Sallyport’s financial condition, results of operations, asset based lending volumes, asset and credit quality trends and profitability and statements about the expected financial benefits and other effects of the acquisition of Sallyport by Northrim Bank; expected cost savings, synergies and other financial benefits from the acquisition of Sallyport by Northrim Bank might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; the ability of Northrim and Sallyport to execute their respective business plans; potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives, including tariffs, on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; potential further increases in inflation, supply-chain constraints, and potential geopolitical instability, including the war in Ukraine and the conflict in the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward-looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.
    References:

    https://www.bea.gov/

    http://almis.labor.state.ak.us/

    http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx

    http://www.tax.state.ak.us/

    https://www.bls.gov/regions/west/news-release/consumerpriceindex_anchorage.htm

    https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx

    https://www.akleg.gov/basis/Bill/Text/34?Hsid=HJR011C

    https://www.trade.gov/data-visualization/tradestats-express-trade-partner-state

    https://tax.alaska.gov/programs/programs/reports/RSB.aspx?Year=2025&Type=Spring

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    https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials

    Contact: Mike Huston, President, CEO, and COO
      (907) 261-8750
      Jed Ballard, Chief Financial Officer
      (907) 261-3539
       
    Income Statement            
    (Dollars in thousands, except per share data) Three Months Ended   Year-to-date
    (Unaudited) June 30, March 31, June 30,   June 30, June 30,
        2025   2025     2024       2025   2024  
    Interest Income:            
    Interest and fees on loans $ 40,519 $ 37,470   $ 32,367     $ 77,989 $ 62,817  
    Interest on portfolio investments   3,765   3,675     4,310       7,440   8,830  
    Interest on deposits in banks   515   416     232       931   1,070  
    Total interest income   44,799   41,561     36,909       86,360   72,717  
    Interest Expense:            
    Interest expense on deposits   10,304   9,935     9,476       20,239   18,656  
    Interest expense on borrowings   903   329     380       1,232   561  
    Total interest expense   11,207   10,264     9,856       21,471   19,217  
    Net interest income   33,592   31,297     27,053       64,889   53,500  
                 
    Provision (benefit) for credit losses   1,976   (1,409 )   (120 )     567   29  
    Net interest income after provision for credit losses   31,616   32,706     27,173       64,322   53,471  
                 
    Other Operating Income:            
    Mortgage banking income   7,400   4,251     5,884       11,651   9,915  
    Purchased receivable income   5,897   6,100     1,242       12,047   2,587  
    Bankcard fees   1,153   1,074     1,105       2,227   2,022  
    Service charges on deposit accounts   726   677     572       1,403   1,121  
    Unrealized gain (loss) on marketable equity securities   78   (50 )   (60 )     28   254  
    Other income   1,386   988     834       2,324   1,522  
    Total other operating income   16,640   13,040     9,577       29,680   17,421  
                 
    Other Operating Expense:            
    Salaries and other personnel expense   20,854   17,223     16,627       38,077   32,044  
    Data processing expense   3,366   3,104     2,601       6,470   5,260  
    Occupancy expense   2,104   1,889     1,843       3,993   3,805  
    Professional and outside services   1,113   1,115     726       2,228   1,481  
    Marketing expense   1,042   672     690       1,714   1,203  
    Insurance expense   756   1,017     692       1,773   1,471  
    Compensation expense – SCF acquisition payments   600   600     —       1,200   —  
    OREO expense, net rental income and gains on sale   2   3     2       5   (389 )
    Other expense   2,651   2,548     2,013       5,199   3,957  
    Total other operating expense   32,488   28,171     25,194       60,659   48,832  
                 
    Income before provision for income taxes   15,768   17,575     11,556       33,343   22,060  
    Provision for income taxes   3,990   4,251     2,536       8,241   4,841  
    Net income $ 11,778 $ 13,324   $ 9,020     $ 25,102 $ 17,219  
                 
    Basic EPS $ 2.13 $ 2.41   $ 1.64     $ 4.54 $ 3.13  
    Diluted EPS $ 2.09 $ 2.38   $ 1.62     $ 4.47 $ 3.10  
    Weighted average shares outstanding, basic   5,521,811   5,519,998     5,500,588       5,520,905   5,500,083  
    Weighted average shares outstanding, diluted   5,611,558   5,608,102     5,558,580       5,611,734   5,562,025  
    Balance Sheet      
    (Dollars in thousands)      
    (Unaudited) June 30, March 31, June 30,
        2025     2025     2024  
           
    Assets:      
    Cash and due from banks $ 43,734   $ 29,671   $ 33,364  
    Interest bearing deposits in other banks   97,549     35,852     21,058  
    Investment securities available for sale, at fair value   429,421     463,096     584,964  
    Investment securities held to maturity   36,750     36,750     36,750  
    Marketable equity securities, at fair value   8,747     8,669     12,381  
    Investment in Federal Home Loan Bank stock   8,343     5,342     4,929  
    Loans held for sale   127,116     159,603     85,926  
           
    Portfolio loans   2,202,115     2,124,330     1,875,907  
    Allowance for credit losses, loans   (22,585 )   (20,922 )   (17,694 )
    Net portfolio loans   2,179,530     2,103,408     1,858,213  
    Purchased receivables, net   109,098     95,489     25,722  
    Mortgage servicing rights, at fair value   27,506     26,814     21,077  
    Other real estate owned, net   —     —     —  
    Premises and equipment, net   36,501     37,070     40,393  
    Lease right of use asset   7,033     7,632     8,244  
    Goodwill and intangible assets   50,824     50,824     15,967  
    Other assets   81,608     80,740     72,680  
    Total assets $ 3,243,760   $ 3,140,960   $ 2,821,668  
           
    Liabilities:      
    Demand deposits $ 777,948   $ 742,560   $ 704,471  
    Interest-bearing demand   1,196,048     1,187,465     906,010  
    Savings deposits   248,141     256,650     238,156  
    Money market deposits   196,166     193,842     195,159  
    Time deposits   390,867     397,460     420,010  
    Total deposits   2,809,170     2,777,977     2,463,806  
    Other borrowings   63,026     13,136     43,961  
    Junior subordinated debentures   10,310     10,310     10,310  
    Lease liability   7,077     7,682     8,269  
    Other liabilities   63,958     52,099     48,122  
    Total liabilities   2,953,541     2,861,204     2,574,468  
           
    Shareholders’ Equity:      
    Total shareholders’ equity   290,219     279,756     247,200  
    Total liabilities and shareholders’ equity $ 3,243,760   $ 3,140,960   $ 2,821,668  
           

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Composition of Portfolio Loans                        
      June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024
      Balance % of
    total    		   Balance % of
    total    		   Balance % of
    total    		   Balance % of
    total    		   Balance % of
    total
    Commercial loans $ 569,753   27 %   $ 573,593   27 %   $ 518,148   24 %   $ 492,414   24 %   $ 495,781   26 %
    Commercial real estate:                            
    Owner occupied properties   447,561   20 %     430,442   20 %     420,060   20 %     412,827   20 %     383,832   20 %
    Nonowner occupied and                            
    multifamily properties   696,766   31 %     690,277   32 %     619,431   29 %     584,302   31 %     551,130   30 %
    Residential real estate:                            
    1-4 family properties                            
    secured by first liens   206,905   9 %     188,219   9 %     270,535   13 %     248,514   12 %     222,026   12 %
    1-4 family properties                            
    secured by junior liens &                            
    revolving secured by first liens   60,118   3 %     53,836   3 %     48,857   2 %     45,262   2 %     41,258   2 %
    1-4 family construction   36,005   2 %     34,017   2 %     39,789   2 %     39,794   2 %     29,510   2 %
    Construction loans   187,442   8 %     156,211   7 %     214,068   10 %     185,362   9 %     154,009   8 %
    Consumer loans   7,570   — %     7,424   — %     7,562   — %     7,836   — %     6,679   — %
    Subtotal   2,212,120         2,134,019         2,138,450         2,016,311         1,884,225    
    Unearned loan fees, net   (10,005 )       (9,689 )       (9,187 )       (8,746 )       (8,318 )  
    Total portfolio loans $ 2,202,115       $ 2,124,330       $ 2,129,263       $ 2,007,565       $ 1,875,907    
                                 
    Composition of Deposits                        
      June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024
      Balance % of total   Balance % of total   Balance % of total   Balance % of total   Balance % of total
    Demand deposits $ 777,948 28 %   $ 742,560 27 %   $ 706,225 27 %   $ 763,595 29 %   $ 704,471 29 %
    Interest-bearing demand   1,196,048 42 %     1,187,465 43 %     1,108,404 41 %     979,238 37 %     906,010 36 %
    Savings deposits   248,141 9 %     256,650 9 %     250,900 9 %     245,043 9 %     238,156 10 %
    Money market deposits   196,166 7 %     193,842 7 %     196,290 7 %     204,821 8 %     195,159 8 %
    Time deposits   390,867 14 %     397,460 14 %     418,370 16 %     435,870 17 %     420,010 17 %
    Total deposits $ 2,809,170     $ 2,777,977     $ 2,680,189     $ 2,628,567     $ 2,463,806  


    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Asset Quality June 30,   March 31,   June 30,  
        2025     2025     2024  
    Nonaccrual loans – Community Banking $ 4,180   $ 4,274   $ 4,233  
    Nonaccrual loans – Home Mortgage Lending   197     221     253  
    Nonaccrual loans – Specialty Finance   3,484     3,573     344  
    Nonaccrual loans – Total   7,861     8,068     4,830  
    Loans 90 days past due and accruing – Community Banking   —     —     17  
    Loans 90 days past due and accruing – Total   —     —     17  
    Total nonperforming loans – Community Banking   4,180     4,274     4,250  
    Total nonperforming loans – Home Mortgage Lending   197     221     253  
    Total nonperforming loans – Specialty Finance   3,484     3,573     344  
    Total nonperforming loans – Total   7,861     8,068     4,847  
    Nonperforming loans guaranteed by gov’t – Community Banking   70     80     —  
    Nonperforming loans guaranteed by gov’t – Total   70     80     —  
    Net nonperforming loans – Community Banking   4,110     4,194     4,250  
    Net nonperforming loans – Home Mortgage Lending   197     221     253  
    Net nonperforming loans – Specialty Finance   3,484     3,573     344  
    Net nonperforming loans – Total   7,791     7,988     4,847  
                 
    Repossessed assets – Community Banking   50     297     297  
    Repossessed assets – Total   50     297     297  
                 
    Nonperforming purchased receivables – Specialty Finance   4,017     4,007     —  
                 
    Net nonperforming assets – Community Banking   4,160     4,491     4,547  
    Net nonperforming assets – Home Mortgage Lending   197     221     253  
    Net nonperforming assets – Specialty Finance   7,501     7,580     344  
    Net nonperforming assets – Total $ 11,858   $ 12,292   $ 5,144  
                 
    Adversely classified loans, net of gov’t guarantees – Community Banking $ 32,128   $ 16,592   $ 6,006  
    Adversely classified loans, net of gov’t guarantees – Home Mortgage Lending   223     252     718  
    Adversely classified loans, net of gov’t guarantees – Specialty Finance   3,484     3,573     344  
    Adversely classified loans, net of gov’t guarantees – Total $ 35,835   $ 20,417   $ 7,068  
                 
    Special mention loans, net of gov’t guarantees – Community Banking $ 3,966   $ 14,496   $ 8,902  
    Special mention loans, net of gov’t guarantees – Home Mortgage Lending   790     637     —  
    Special mention loans, net of gov’t guarantees – Total $ 4,756   $ 15,133   $ 8,902  
    Asset Quality, Continued June 30,   March 31,   June 30,  
        2025       2025       2024    
    Nonperforming loans, net of government guarantees / portfolio loans   0.35   %   0.38   %   0.26   %
    Nonperforming loans, net of government guarantees / portfolio loans,            
    net of government guarantees   0.38   %   0.40   %   0.28   %
    Nonperforming assets, net of government guarantees / total assets   0.37   %   0.39   %   0.18   %
    Nonperforming assets, net of government guarantees / total assets            
    net of government guarantees   0.38   %   0.41   %   0.19   %
                 
    Loans 30-89 days past due and accruing, net of government guarantees /       %    
    portfolio loans   0.06   %   0.04   %   0.03   %
    Loans 30-89 days past due and accruing, net of government guarantees /            
    portfolio loans, net of government guarantees   0.06   %   0.04   %   0.04   %
                 
    Allowance for credit losses for loans / portfolio loans   1.03   %   0.98   %   0.94   %
    Allowance for credit losses for loans / portfolio loans, net of gov’t guarantees   1.10   %   1.06   %   1.01   %
    Allowance for credit losses for loans / nonperforming loans, net of            
    government guarantees   290   %   262   %   365   %
                 
    Gross loan charge-offs for the quarter – Community Banking $3     $50     $—    
    Gross loan charge-offs for the quarter – Specialty Finance   152       —       —    
    Gross loan charge-offs for the quarter – Total   155       50       —    
                 
    Gross loan recoveries for the quarter – Community Banking   (15 )     (84 )     (26 )  
    Gross loan recoveries for the quarter – Home Mortgage Lending   —       —       —    
    Gross loan recoveries for the quarter – Specialty Finance   —       —       —    
    Gross loan recoveries for the quarter – Total ($15 )   ($84 )   ($26 )  
                 
    Net loan (recoveries) charge-offs for the quarter – Community Banking ($12 )   ($34 )   ($26 )  
    Net loan (recoveries) charge-offs for the quarter – Specialty Finance   152       —       —    
    Net loan (recoveries) charge-offs for the quarter – Total $140     ($34 )   ($26 )  
                 
    Net loan charge-offs (recoveries) year-to-date – Community Banking ($46 )   ($34 )   ($68 )  
    Net loan charge-offs (recoveries) year-to-date – Specialty Finance   152       —       —    
    Net loan charge-offs (recoveries) year-to-date – Total $106     ($34 )   ($68 )  
                 
    Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter   0.01   %   —   %   —   %
                 
    Net loan charge-offs (recoveries) year-to-date / average loans,            
    year-to-date annualized   0.01   %   (0.01 ) %   (0.01 ) %
                 
    Allowance for credit losses for purchased receivables / purchased receivables   3.05   %   3.72   %   —   %
                 
    Net purchased receivable charge-offs (recoveries) for the quarter $281     $—     $—    
                 
    Net purchased receivable charge-offs (recoveries) year-to-date $281     $—     $—    
                 
    Net purchased receivable charge-offs (recoveries) for the quarter /            
    average purchased receivables, for the quarter   0.27   % NA   NA  
                 
    Net purchased receivable charge-offs (recoveries) year-to-date / average            
    purchased receivables, year-to-date annualized   0.61   % NA   NA  


    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Average Balances, Yields, and Rates                
      Three Months Ended
      June 30, 2025   March 31, 2025   June 30, 2024
        Average     Average     Average
      Average Tax Equivalent   Average Tax Equivalent   Average Tax Equivalent
      Balance Yield/Rate   Balance Yield/Rate   Balance Yield/Rate
    Assets                
    Interest bearing deposits in other banks $ 27,216   7.60 %   $ 37,969   4.44 %   $ 17,352   5.27 %
    Portfolio investments   515,916   3.07 %     523,753   2.97 %     639,980   2.82 %
    Loans held for sale   173,675   6.50 %     46,223   5.86 %     65,102   6.08 %
    Portfolio loans   2,172,482   6.99 %     2,173,425   6.89 %     1,845,832   6.87 %
    Total interest-earning assets   2,889,289   6.27 %     2,781,370   6.10 %     2,568,266   5.83 %
    Nonearning assets   306,206         293,415         204,509    
    Total assets $ 3,195,495       $ 3,074,785       $ 2,772,775    
                     
    Liabilities and Shareholders’ Equity                
    Interest-bearing deposits $ 2,029,100   2.04 %   $ 2,002,594   2.01 %   $ 1,725,013   2.21 %
    Borrowings   86,404   4.14 %     37,081   3.55 %     38,390   3.92 %
    Total interest-bearing liabilities   2,115,504   2.12 %     2,039,675   2.04 %     1,763,403   2.25 %
                     
    Noninterest-bearing demand deposits   737,112         697,534         706,339    
    Other liabilities   54,320         63,348         58,549    
    Shareholders’ equity   288,559         274,228         244,484    
    Total liabilities and shareholders’ equity $ 3,195,495       $ 3,074,785       $ 2,772,775    
    Net spread   4.15 %     4.06 %     3.58 %
    NIM   4.66 %     4.55 %     4.24 %
    NIMTE*   4.72 %     4.61 %     4.30 %
    Cost of funds   1.57 %     1.52 %     1.60 %
    Average portfolio loans to average                
    interest-earning assets   75.19 %       78.14 %       71.87 %  
    Average portfolio loans to average total deposits   78.54 %       80.49 %       75.92 %  
    Average non-interest deposits to average                
    total deposits   26.65 %       25.83 %       29.05 %  
    Average interest-earning assets to average                
    interest-bearing liabilities   136.58 %       136.36 %       145.64 %  


    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Average Balances, Yields, and Rates          
      Year-to-date
      June 30, 2025   June 30, 2024
        Average     Average
      Average Tax Equivalent   Average Tax Equivalent
      Balance Yield/Rate   Balance Yield/Rate
    Assets          
    Interest bearing deposits in other banks $ 32,563   5.77 %   $ 39,457   5.36 %
    Portfolio investments   519,813   3.02 %     655,458   2.82 %
    Loans held for sale   110,301   6.35 %     48,868   6.10 %
    Portfolio loans   2,172,950   6.94 %     1,819,629   6.81 %
    Total interest-earning assets   2,835,627   6.19 %     2,563,412   5.76 %
    Nonearning assets   299,848         202,819    
    Total assets $ 3,135,475       $ 2,766,231    
               
    Liabilities and Shareholders’ Equity          
    Interest-bearing deposits $ 2,015,920   2.02 %   $ 1,728,468   2.17 %
    Borrowings   61,879   3.96 %     31,167   3.55 %
    Total interest-bearing liabilities   2,077,799   2.08 %     1,759,635   2.19 %
               
    Noninterest-bearing demand deposits   717,432         705,736    
    Other liabilities   58,809         59,478    
    Shareholders’ equity   281,435         241,382    
    Total liabilities and shareholders’ equity $ 3,135,475       $ 2,766,231    
    Net spread   4.11 %     3.57 %
    NIM   4.61 %     4.20 %
    NIMTE*   4.66 %     4.26 %
    Cost of funds   1.55 %     1.57 %
    Average portfolio loans to average interest-earning assets   76.63 %       70.98 %  
    Average portfolio loans to average total deposits   79.50 %       74.75 %  
    Average non-interest deposits to average total deposits   26.25 %       28.99 %  
    Average interest-earning assets to average interest-bearing liabilities   136.47 %       145.68 %  


    Additional Financial Information
    (Dollars in thousands, except per share data)
    (Unaudited)

    Capital Data (At quarter end)            
      June 30, 2025   March 31, 2025   June 30, 2024  
    Book value per share $52.55     $50.67     $44.93    
    Tangible book value per share* $43.35     $41.47     $42.03    
    Total shareholders’ equity/total assets   8.95   %   8.91   %   8.76   %
    Tangible Common Equity/Tangible Assets*   7.50   %   7.41   %   8.24   %
    Tier 1 Capital / Risk Adjusted Assets   9.80   %   9.76   %   11.68   %
    Total Capital / Risk Adjusted Assets   10.71   %   10.62   %   12.58   %
    Tier 1 Capital / Average Assets   7.99   %   8.02   %   9.17   %
    Shares outstanding   5,522,271       5,520,892       5,501,562    
    Total unrealized loss on AFS debt securities, net of income taxes ($3,571 )   ($5,452 )   ($15,197 )  
    Total unrealized gain on derivatives and hedging activities, net of income taxes $1,026     $1,097     $1,212    
    Profitability Ratios                    
      June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024  
    For the quarter:                    
    NIM 4.66 % 4.55 % 4.41 % 4.29 % 4.24 %
    NIMTE* 4.72 % 4.61 % 4.47 % 4.35 % 4.30 %
    Efficiency ratio 64.68 % 63.54 % 66.96 % 66.11 % 68.78 %
    Return on average assets 1.48 % 1.76 % 1.43 % 1.22 % 1.31 %
    Return on average equity 16.37 % 19.70 % 16.32 % 13.69 % 14.84 %
      June 30, 2025   June 30, 2024  
    Year-to-date:        
    NIM 4.61 % 4.20 %
    NIMTE* 4.66 % 4.26 %
    Efficiency ratio 64.14 % 68.85 %
    Return on average assets 1.61 % 1.25 %
    Return on average equity 17.99 % 14.35 %


    *Non-GAAP Financial Measures
    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP.

    Net interest margin on a tax equivalent basis

    Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2025 and 2024. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin for the periods indicated.

      Three Months Ended
      June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024
    Net interest income $ 33,592     $ 31,297     $ 30,841     $ 28,842     $ 27,053  
    Divided by average interest-bearing assets   2,889,289       2,781,370       2,787,517       2,674,291       2,568,266  
    Net interest margin (“NIM”)2   4.66 %     4.55 %     4.41 %     4.29 %     4.24 %
                       
    Net interest income $ 33,592     $ 31,297     $ 30,841     $ 28,842     $ 27,053  
    Plus: reduction in tax expense related to                  
    tax-exempt interest income   409       379       379       385       378  
      $ 34,001     $ 31,676     $ 31,220     $ 29,227     $ 27,431  
    Divided by average interest-bearing assets   2,889,289       2,781,370       2,787,517       2,674,291       2,568,266  
    NIMTE2   4.72 %     4.61 %     4.47 %     4.35 %     4.30 %
      Year-to-date
      June 30, 2025   June 30, 2024
    Net interest income $ 64,889     $ 53,500  
    Divided by average interest-bearing assets   2,835,627       2,563,412  
    Net interest margin (“NIM”)3   4.61 %     4.20 %
           
    Net interest income $ 64,889     $ 53,500  
    Plus: reduction in tax expense related to      
    tax-exempt interest income   788       757  
      $ 65,677     $ 54,257  
    Divided by average interest-bearing assets   2,835,627       2,563,412  
    NIMTE3   4.66 %     4.26 %

    2Calculated using actual days in the quarter divided by 365 for the quarters ended in 2025 and 366 for the quarters ended in 2024, respectively.

    3Calculated using actual days in the year divided by 365 for year-to-date period in 2025 and 366 for year-to-date period in 2024, respectively.

    *Non-GAAP Financial Measures
    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Tangible Book Value Per Share

    Tangible book value per share is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share for the periods indicated.

      June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024
                       
    Total shareholders’ equity $ 290,219   $ 279,756   $ 267,116   $ 260,050   $ 247,200
    Divided by shares outstanding   5,522     5,521     5,518     5,502     5,502
    Book value per share $ 52.55   $ 50.68   $ 48.41   $ 47.26   $ 44.93
      June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024
                       
    Total shareholders’ equity $ 290,219   $ 279,756   $ 267,116   $ 260,050   $ 247,200
    Less: goodwill and intangible assets   50,824     50,824     50,968     15,967     15,967
      $ 239,395   $ 228,932   $ 216,148   $ 244,083   $ 231,233
    Divided by shares outstanding   5,522     5,521     5,518     5,502     5,502
    Tangible book value per share $ 43.35   $ 41.47   $ 39.17   $ 44.36   $ 42.03


    Tangible Common Equity to Tangible Assets

    Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets for the periods indicated.

    Northrim BanCorp, Inc. June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024
                       
    Total shareholders’ equity $ 290,219     $ 279,756     $ 267,116     $ 260,050     $ 247,200  
    Total assets   3,243,760       3,140,960       3,041,869       2,963,392       2,821,668  
    Total shareholders’ equity to total assets   8.95 %     8.91 %     8.78 %     8.78 %     8.76 %
    Northrim BanCorp, Inc. June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024
    Total shareholders’ equity $ 290,219     $ 279,756     $ 267,116     $ 260,050     $ 247,200  
    Less: goodwill and other intangible assets, net   50,824       50,824       50,968       15,967       15,967  
    Tangible common shareholders’ equity $ 239,395     $ 228,932     $ 216,148     $ 244,083     $ 231,233  
                       
    Total assets $ 3,243,760     $ 3,140,960     $ 3,041,869     $ 2,963,392     $ 2,821,668  
    Less: goodwill and other intangible assets, net   50,824       50,824       50,968       15,967       15,967  
    Tangible assets $ 3,192,936     $ 3,090,136     $ 2,990,901     $ 2,947,425     $ 2,805,701  
    Tangible common equity ratio   7.50 %     7.41 %     7.23 %     8.28 %     8.24 %

    Note Transmitted on GlobeNewswire on July 23, 2025, at 12:15 pm Alaska Standard Time.

    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 Security: Defense News in Brief: U.S.-Philippine Airmen strengthen ties during Cope Thunder 25-2

    Source: United States Airforce

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

    CLARK AIR BASE, Philippines (AFNS) —  

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

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

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

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

    U.S. Air Force maintainers, assigned to the 421st Mission Generation Force Element, depart the flightline after conducting preflight operations on an F-35A Lightning II during Cope Thunder 25-2 at Clark Air Base, Philippines, July 7, 2025. The exercise enhances interoperability between the U.S. Air Force and the Philippine Air Force and supported the Armed Forces of the Philippines’ modernization efforts. (U.S. Air Force photo by Airman 1st Class Aden Brown)
    U.S. Air Force Staff Sgt. Arnaldo Puente Mendez, 421st Mission Generation Force Element aerospace ground equipment maintainer, briefs Philippine Air Force airmen on a self-generating nitrogen servicing cart during Cope Thunder 25-2 at Clark Air Base, Philippines, July 9, 2025. During the subject matter expert exchange, U.S. Airmen provided valuable insight into equipment used for aircraft maintenance, supporting Armed Forces of the Philippines’ modernization efforts. (U.S. Air Force photo by Airman 1st Class Aden Brown)
    U.S. Air Force Capt. Tyler Rico, second to the left, and Capt. Toney Fisher, right, 421st Mission Generation Force Element F-35A pilots, coordinate flight plans with Philippine Air Force pilots during the Cope Thunder 25-2 exercise at Clark Air Base, Philippines, July 7, 2025. The training conducted between the U.S. and Philippine Air Force strengthens both the ability to respond together for potential future crises, contingencies and natural disasters. (U.S. Air Force photo by Airman 1st Class Aden Brown) (Image blurred for operational security)

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

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

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

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

    MIL Security OSI –

  • MIL-OSI: Horizon Bancorp, Inc. Reports Strong Second Quarter 2025 Results Led by Continued Net Interest Margin Expansion

    Source: GlobeNewswire (MIL-OSI)

    MICHIGAN CITY, Ind., July 23, 2025 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three months ended June 30, 2025.

    “Horizon’s second quarter earnings reflect the strength of the organization’s exceptional core community banking franchise. Strong loan growth, stable and granular core funding, excellent credit quality and prudent management of expenses fueled the quarter’s positive results and expanded on management’s commitment to improve the financial performance of the Company. The quarter was highlighted by a seventh consecutive quarter of net interest margin expansion, low net charge offs of 2 bps annualized and enhanced momentum in key performance metrics of ROAA and ROATCE”, President and CEO, Thomas Prame stated. “We continue to show strength across our core community banking platform that is being driven by a disciplined approach to creating a more efficient balance sheet and effective deployment of capital. We are pleased with our results through the first six months of 2025, with reported earnings per share growing by 58% versus the comparable period a year ago, and look forward to continuing to create additional shareholder value throughout the remainder of the year.”

    Net income for the three months ended June 30, 2025 was $20.6 million, or $0.47 per diluted share, compared to net income of $23.9 million, or $0.54, for the first quarter of 2025 and compared to net income of $14.1 million, or $0.32 per diluted share, for the second quarter of 2024. As previously disclosed, results in the first quarter of 2025 included the $7.0 million pre-tax gain on the sale of the Company’s mortgage warehouse business.

    Net income for the six months ended June 30, 2025 was $44.6 million, or $1.01 per diluted share, compared to net income of $28.1 million, or $0.64, for the six months ended June 30, 2024.

    Second Quarter 2025 Highlights

    • Net interest income of $55.4 million increased 5.9% compared with $52.3 million for the three months ended March 31, 2025, and 22.3% compared with $45.3 million in the year ago period. Net interest margin, on a fully taxable equivalent (“FTE”) basis1, expanded for the seventh consecutive quarter, to 3.23%, compared with 3.04% for the three months ended March 31, 2025 and 2.64% for the three months ended June 30, 2024.
    • Total loans held for investment (“HFI”) increased 6.2% compared to the linked quarter annualized, with strong organic commercial loan growth of $117.2 million, or 14.8% annualized. This growth was partially funded by the continued strategic runoff of lower yielding indirect auto loans of approximately $34.1 million.
    • Funding continued to trend favorably, with non-time deposit balances remaining relatively flat for the fourth consecutive quarter and interest-bearing liability cost declining by another 2 bps during the quarter.
    • Credit quality remained strong, with annualized net charge offs of 0.02% of average loans during the second quarter. Non-performing assets remain well within expected ranges, decreasing 12.4% from the prior quarter.
    • Expenses continued to be well managed, up less than 1% from the first quarter of 2025. These results reflect management’s commitment to generate higher earnings while maintaining a more efficient expense base.

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    1     Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

       
      Financial Highlights
      (Dollars in Thousands Except Share and Per Share Data and Ratios)
      Three Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,
      2025   2025   2024   2024   2024
    Income statement:                  
    Net interest income $ 55,354     $ 52,267     $ 53,127     $ 46,910     $ 45,279  
    Provision for credit loss expense   2,462       1,376       1,171       1,044       2,369  
    Non-interest income (loss)   10,920       16,499       (28,954 )     11,511       10,485  
    Non-interest expense   39,417       39,306       44,935       39,272       37,522  
    Income tax expense (benefit)   3,752       4,141       (11,051 )     (75 )     1,733  
    Net Income (Loss) $ 20,643     $ 23,943     $ (10,882 )   $ 18,180     $ 14,140  
                       
    Per share data:                  
    Basic earnings (loss) per share $ 0.47     $ 0.55     $ (0.25 )   $ 0.42     $ 0.32  
    Diluted earnings (loss) per share   0.47       0.54       (0.25 )     0.41       0.32  
    Cash dividends declared per common share   0.16       0.16       0.16       0.16       0.16  
    Book value per common share   18.06       17.72       17.46       17.27       16.62  
    Market value – high   15.88       17.76       18.76       16.57       12.74  
    Market value – low   12.92       15.00       14.57       11.89       11.29  
    Weighted average shares outstanding – Basic   43,794,490       43,777,109       43,721,211       43,712,059       43,712,059  
    Weighted average shares outstanding – Diluted   44,034,663       43,954,164       43,721,211       44,112,321       43,987,187  
    Common shares outstanding (end of period)   43,801,507       43,785,932       43,722,086       43,712,059       43,712,059  
                       
    Key ratios:                  
    Return on average assets   1.08 %     1.25 %   (0.56 )%     0.92 %     0.73 %
    Return on average stockholders’ equity   13.24       12.44       (5.73 )     9.80       7.83  
    Total equity to total assets   10.34       10.18       9.79       9.52       9.18  
    Total loans to deposit ratio   87.52       85.21       87.75       83.92       85.70  
    Allowance for credit losses to HFI loans   1.09       1.07       1.07       1.10       1.08  
    Annualized net charge-offs of average total loans (1)   0.02       0.07       0.05       0.03       0.05  
    Efficiency ratio   59.48       57.16       185.89       67.22       67.29  
                       
    Key metrics (Non-GAAP) (2)                  
    Net FTE interest margin   3.23 %     3.04 %     2.97 %     2.66 %     2.64 %
    Return on average tangible common equity   13.24       15.79       (7.35 )     12.65       10.18  
    Tangible common equity to tangible assets   8.37       8.19       7.83       7.58       7.22  
    Tangible book value per common share $ 14.32     $ 13.96     $ 13.68     $ 13.46     $ 12.80  
                       
                       
    (1) Average total loans includes loans held for investment and held for sale.
    (2) Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
     

    Income Statement Highlights

    Net Interest Income

    Net interest income was $55.4 million in the second quarter of 2025, compared to $52.3 million in the first quarter of 2025, driven by the continued expansion of the Company’s net FTE interest margin1, which increased to 3.23% for the second quarter of 2025, compared to 3.04% for the first quarter of 2025. Expansion was attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward deposit balances, in addition to continued disciplined pricing strategies on both sides of the balance sheet. The second quarter net FTE interest margin did benefit by approximately seven basis points related to interest recoveries on certain commercial and residential loans.

    Provision for Credit Losses

    During the second quarter of 2025, the Company recorded a provision for credit losses of $2.5 million. This compares to a provision for credit losses of $1.4 million during the first quarter of 2025, and $2.4 million during the second quarter of 2024. The increase in the provision for credit losses during the second quarter of 2025 when compared with the first quarter of 2025 was primarily attributable to net growth in commercial loans HFI and changes in economic factors, partially offset by the reduction of specific reserves and the reserves for unfunded commitments in the current quarter.

    For the second quarter of 2025, the allowance for credit losses included net charge-offs of $0.3 million, or an annualized 0.02% of average loans outstanding, compared to net charge-offs of $0.9 million, or an annualized 0.07% of average loans outstanding for the first quarter of 2025, and net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding, in the second quarter of 2024.

    The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.09% at June 30, 2025, compared to 1.07% at March 31, 2025 and 1.08% at June 30, 2024.

    Non-Interest Income

    For the Quarter Ended June 30,   March 31,   December 31,   September 30,   June 30,
    (Dollars in Thousands) 2025
    		   2025   2024   2024
    		   2024
    Non-interest Income                  
    Service charges on deposit accounts $ 3,208     $ 3,208     $ 3,276     $ 3,320     $ 3,130  
    Wire transfer fees   69       71       124       123       113  
    Interchange fees   3,403       3,241       3,353       3,511       3,826  
    Fiduciary activities   1,251       1,326       1,313       1,394       1,372  
    Loss on sale of investment securities   —       (407 )     (39,140 )     —       —  
    Gain on sale of mortgage loans   1,219       1,076       1,071       1,622       896  
    Mortgage servicing income net of impairment   375       385       376       412       450  
    Increase in cash value of bank owned life insurance   346       335       335       349       318  
    Other income   1,049       7,264       338       780       380  
    Total non-interest income (loss) $ 10,920     $ 16,499     $ (28,954 )   $ 11,511     $ 10,485  
                                           

    Total non-interest income was $10.9 million in the second quarter of 2025, compared to non-interest income of $16.5 million in the first quarter of 2025. The decrease in non-interest income of $5.6 million is due to the sale of the Company’s mortgage warehouse business to an unrelated third party in the first quarter of 2025, resulting in a pre-tax gain of $7.0 million that did not recur in the current period. Interchange fees and gain on sale of mortgage loans benefited from normal seasonality, while other categories remained relatively unchanged when compared with the prior period.

    ____________________________________
    1     Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Non-Interest Expense

    For the Quarter Ended June 30,   March 31,   December 31,   September 30,   June 30,
    (Dollars in Thousands) 2025
    		   2025
    		   2024
    		   2024
    		   2024
    Non-interest Expense                  
    Salaries and employee benefits $ 22,731     $ 22,414     $ 25,564     $ 21,829     $ 20,583  
    Net occupancy expenses   3,127       3,702       3,431       3,207       3,192  
    Data processing   2,951       2,872       2,841       2,977       2,579  
    Professional fees   735       826       736       676       714  
    Outside services and consultants   3,278       3,265       4,470       3,677       3,058  
    Loan expense   1,231       689       1,285       1,034       1,038  
    FDIC insurance expense   1,216       1,288       1,193       1,204       1,315  
    Core deposit intangible amortization   816       816       843       844       844  
    Merger related expenses   —       305       —       —       —  
    Other losses   245       228       371       297       515  
    Other expense   3,087       2,901       4,201       3,527       3,684  
    Total non-interest expense $ 39,417     $ 39,306     $ 44,935     $ 39,272     $ 37,522  
                                           

    Total non-interest expense was $39.4 million in the second quarter of 2025, compared with $39.3 million in the first quarter of 2025. The increase in non-interest expense during the second quarter of 2025 when compared with the prior period was primarily driven by a $0.5 million increase in loan expense. The increase was partially offset by a $0.6 million decrease in net occupancy expenses. Additionally, the Company incurred $0.3 million of direct expenses related to the sale of the mortgage warehouse business in the prior period that did not recur in the current period.   

    Income Taxes

    Horizon recorded a net tax expense of $3.8 million for the second quarter of 2025, representing an effective tax rate of 15.4%, which is consistent with the Company’s estimated annual effective tax rate.

    Balance Sheet Highlights

    Total assets increased by $23.4 million, or 0.3%, to $7.7 billion as of June 30, 2025, from $7.6 billion as of March 31, 2025. The increase in total assets is primarily due to increases in loans HFI and non-interest earning cash, partially offset by a decrease in interest earning cash and investment securities. Total investment securities decreased by $24.2 million, or 1.2%, to $2.1 billion as of June 30, 2025. Total loans were $5.0 billion at June 30, 2025, an increase of $75.5 million from March 31, 2025 balances, due to organic commercial loan growth net of continued runoff in the indirect consumer portfolio.

    Total deposits decreased by $66.0 million, or 1.1%, to $5.7 billion as of June 30, 2025 when compared to balances as of March 31, 2025. The decrease was partially related to a decline in time deposits of $51.9 million, or 4.2% and, to a lesser extent, a modest decrease in savings and money market deposits of $7.0 million, or 0.4%. Non-interest bearing deposit balances remained relatively unchanged in the current period. Total borrowings increased by $68.1 million during the quarter, to $880.3 million as of June 30, 2025. Balances subject to repurchase agreements increased by $7.2 million, to $95.1 million.

    Capital

    The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters, and the Company’s preliminary estimate of its consolidated regulatory capital ratios for the quarter ended June 30, 2025:

    For the Quarter Ended June 30,   March 31,   December 31,   September 30,
      2025*   2025   2024   2024
    Consolidated Capital Ratios              
    Total capital (to risk-weighted assets)   14.48 %     14.26 %     13.91 %     13.45 %
    Tier 1 capital (to risk-weighted assets)   12.52       12.33       12.00       11.63  
    Common equity tier 1 capital (to risk-weighted assets)   11.52       11.32       11.00       10.68  
    Tier 1 capital (to average assets)   9.59       9.25       8.88       9.02  
    *Preliminary estimate – may be subject to change    
         

    As of June 30, 2025, the ratio of total stockholders’ equity to total assets is 10.34%. Book value per common share was $18.06, increasing $0.34 during the second quarter of 2025.

    Tangible common equity3 totaled $627.1 million at June 30, 2025, and the ratio of tangible common equity to tangible assets1 was 8.37% at June 30, 2025, up from 8.19% at March 31, 2025. Tangible book value, which excludes intangible assets from total equity, per common share1 was $14.32, increasing $0.36 during the second quarter of 2025 behind the growth in retained earnings.

    Credit Quality

    As of June 30, 2025, total non-accrual loans decreased by $4.5 million, or 15.7%, from March 31, 2025, to 0.49% of total loans HFI. Total non-performing assets decreased $3.9 million, or 12.4%, to $27.5 million, compared to $31.4 million as of March 31, 2025. The ratio of non-performing assets to total assets decreased to 0.36% compared to 0.41% as of March 31, 2025.

    As of June 30, 2025, net charge-offs decreased by $0.6 million to $0.3 million, compared to $0.9 million as of March 31, 2025 and remain just 0.02% annualized of average loans.

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    1     Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Earnings Conference Call

    As previously announced, Horizon will host a conference call to review its second quarter financial results and operating performance.

    Participants may access the live conference call on July 24, 2025 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp, Inc. Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

    A telephone replay of the call will be available approximately one hour after the end of the conference through August 1, 2025. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 5878909.

    About Horizon Bancorp, Inc.

    Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.7 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

    Use of Non-GAAP Financial Measures

    Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to one-time costs and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

    Forward Looking Statements

    This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

    Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: effects on Horizon’s business resulting from new U.S. domestic or foreign governmental trade measures, including but not limited to tariffs, import and export controls, foreign exchange intervention accomplished to offset the effects of trade policy or in response to currency volatility, and other restrictions on free trade; uncertain conditions within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

       
      Condensed Consolidated Statements of Income
      (Dollars in Thousands Except Per Share Data, Unaudited)
      Three Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,
      2025
    		   2025   2024   2024   2024
    Interest Income                  
    Loans receivable $ 78,618     $ 74,457     $ 76,747     $ 75,488     $ 71,880  
    Investment securities – taxable   5,941       6,039       6,814       8,133       7,986  
    Investment securities – tax-exempt   6,088       6,192       6,301       6,310       6,377  
    Other   830       2,487       3,488       957       738  
    Total interest income   91,477       89,175       93,350       90,888       86,981  
    Interest Expense                  
    Deposits   26,053       25,601       27,818       30,787       28,447  
    Borrowed funds   8,171       9,188       10,656       11,131       11,213  
    Subordinated notes   829       829       829       830       829  
    Junior subordinated debentures issued to capital trusts   1,070       1,290       920       1,230       1,213  
    Total interest expense   36,123       36,908       40,223       43,978       41,702  
    Net Interest Income   55,354       52,267       53,127       46,910       45,279  
    Provision for credit loss expense   2,462       1,376       1,171       1,044       2,369  
    Net Interest Income after Provision for Credit Losses   52,892       50,891       51,956       45,866       42,910  
    Non-interest Income                  
    Service charges on deposit accounts   3,208       3,208       3,276       3,320       3,130  
    Wire transfer fees   69       71       124       123       113  
    Interchange fees   3,403       3,241       3,353       3,511       3,826  
    Fiduciary activities   1,251       1,326       1,313       1,394       1,372  
    Gains (losses) on sale of investment securities   —       (407 )     (39,140 )     —       —  
    Gain on sale of mortgage loans   1,219       1,076       1,071       1,622       896  
    Mortgage servicing income net of impairment   375       385       376       412       450  
    Increase in cash value of bank owned life insurance   346       335       335       349       318  
    Other income   1,049       7,264       338       780       380  
    Total non-interest income (loss)   10,920       16,499       (28,954 )     11,511       10,485  
    Non-interest Expense                  
    Salaries and employee benefits   22,731       22,414       25,564       21,829       20,583  
    Net occupancy expenses   3,127       3,702       3,431       3,207       3,192  
    Data processing   2,951       2,872       2,841       2,977       2,579  
    Professional fees   735       826       736       676       714  
    Outside services and consultants   3,278       3,265       4,470       3,677       3,058  
    Loan expense   1,231       689       1,285       1,034       1,038  
    FDIC insurance expense   1,216       1,288       1,193       1,204       1,315  
    Core deposit intangible amortization   816       816       843       844       844  
    Merger related expenses   —       305       —       —       —  
    Other losses   245       228       371       297       515  
    Other expense   3,087       2,901       4,201       3,527       3,684  
    Total non-interest expense   39,417       39,306       44,935       39,272       37,522  
    Income (Loss) Before Income Taxes   24,395       28,084       (21,933 )     18,105       15,873  
    Income tax expense (benefit)   3,752       4,141       (11,051 )     (75 )     1,733  
    Net Income (Loss) $ 20,643     $ 23,943     $ (10,882 )   $ 18,180     $ 14,140  
    Basic Earnings (Loss) Per Share $ 0.47     $ 0.55     $ (0.25 )   $ 0.42     $ 0.32  
    Diluted Earnings (Loss) Per Share   0.47       0.54       (0.25 )     0.41       0.32  
                                           
      Condensed Consolidated Balance Sheet
      (Dollars in Thousands, Unaudited)
      Three Months Ended for the Period
      June 30,   March 31,   December 31,   September 30,   June 30,
      2025   2025   2024   2024   2024
    Assets                  
    Interest earning assets                  
    Federal funds sold $ 2,024     $ —     $ —     $ 113,912     $ 34,453  
    Interest earning deposits   34,174       80,023       201,131       12,107       4,957  
    Interest earning time deposits   —       —       735       735       1,715  
    Federal Home Loan Bank stock   45,412       45,412       53,826       53,826       53,826  
    Investment securities, available for sale   231,999       231,431       233,677       541,170       527,054  
    Investment securities, held to maturity   1,819,087       1,843,851       1,867,690       1,888,379       1,904,281  
    Loans held for sale   2,994       3,253       67,597       2,069       2,440  
    Gross loans held for investment (HFI)   4,985,582       4,909,815       4,847,040       4,803,996       4,822,840  
    Total Interest earning assets   7,121,272       7,113,784       7,271,696       7,416,194       7,351,566  
    Non-interest earning assets                  
    Allowance for credit losses   (54,399 )     (52,654 )     (51,980 )     (52,881 )     (52,215 )
    Cash   101,719       89,643       92,300       108,815       106,691  
    Cash value of life insurance   37,755       37,409       37,450       37,115       36,773  
    Other assets   148,773       143,675       152,635       119,026       165,656  
    Goodwill   155,211       155,211       155,211       155,211       155,211  
    Other intangible assets   8,592       9,407       10,223       11,067       11,910  
    Premises and equipment, net   93,398       93,499       93,864       93,544       93,695  
    Interest receivable   39,730       38,663       39,747       39,366       43,240  
    Total non-interest earning assets   530,779       514,855       529,450       511,263       560,961  
    Total assets $ 7,652,051     $ 7,628,639     $ 7,801,146     $ 7,927,457     $ 7,912,526  
    Liabilities                  
    Savings and money market deposits $ 3,385,413     $ 3,393,371     $ 3,446,681     $ 3,420,827     $ 3,364,726  
    Time deposits   1,193,180       1,245,088       1,089,153       1,220,653       1,178,389  
    Borrowings   880,336       812,218       1,142,340       1,142,744       1,229,165  
    Repurchase agreements   95,089       87,851       89,912       122,399       128,169  
    Subordinated notes   55,807       55,772       55,738       55,703       55,668  
    Junior subordinated debentures issued to capital trusts   57,583       57,531       57,477       57,423       57,369  
    Total interest earning liabilities   5,667,408       5,651,832       5,881,301       6,019,749       6,013,486  
    Non-interest bearing deposits   1,121,163       1,127,324       1,064,818       1,085,535       1,087,040  
    Interest payable   14,007       11,441       11,137       11,400       11,240  
    Other liabilities   58,621       61,981       80,308       55,951       74,096  
    Total liabilities   6,861,199       6,852,578       7,037,564       7,172,635       7,185,862  
    Stockholders’ Equity                  
    Preferred stock   —       —       —       —       —  
    Common stock   —       —       —       —       —  
    Additional paid-in capital   360,758       360,522       363,761       358,453       357,673  
    Retained earnings   466,497       452,945       436,122       454,050       442,977  
    Accumulated other comprehensive (loss)   (36,403 )     (37,406 )     (36,301 )     (57,681 )     (73,985 )
    Total stockholders’ equity   790,852       776,061       763,582       754,822       726,665  
    Total liabilities and stockholders’ equity $ 7,652,051     $ 7,628,639     $ 7,801,146     $ 7,927,457     $ 7,912,527  
                                           
      Loans and Deposits        
      (Dollars in Thousands, Unaudited)        
      June 30,   March 31,   December 31,   September 30,   June 30,   % Change
      2025
    		   2025
    		   2024
    		   2024
    		   2024
    		   Q2’25 vs
    Q1’25    		   Q2’25 vs
    Q2’24
    Loans:                          
    Commercial real estate $ 2,321,951     $ 2,262,910     $ 2,202,858     $ 2,105,459     $ 2,117,772       3 %     10 %
    Commercial & Industrial   976,740       918,541       875,297       808,600       786,788       6 %     24 %
    Total commercial   3,298,691       3,181,451       3,078,155       2,914,059       2,904,560       4 %     14 %
    Residential Real estate   786,026       801,726       802,909       801,356       797,956       (2 )%     (1 )%
    Mortgage warehouse   —       —       —       80,437       68,917       — %     (100 )%
    Consumer   900,865       926,638       965,976       1,008,144       1,051,407       (3 )%     (14 )%
    Total loans held for investment   4,985,582       4,909,815       4,847,040       4,803,996       4,822,840       2 %     3 %
    Loans held for sale   2,994       3,253       67,597       2,069       2,440       (8 )%     23 %
    Total loans $ 4,988,576     $ 4,913,068     $ 4,914,637     $ 4,806,065     $ 4,825,280       2 %     3 %
                               
    Deposits:                          
    Interest bearing deposits $ 1,713,058     $ 1,713,991     $ 1,767,983     $ 1,688,998     $ 1,653,508       — %     4 %
    Savings and money market deposits   1,672,355       1,679,380       1,678,697       1,731,830       1,711,218       — %     (2 )%
    Time deposits   1,193,180       1,245,088       1,089,153       1,220,653       1,178,389       (4 )%     1 %
    Total Interest bearing deposits   4,578,593       4,638,459       4,535,833       4,641,481       4,543,115       (1 )%     1 %
    Non-interest bearing deposits                          
    Non-interest bearing deposits   1,121,164       1,127,324       1,064,819       1,085,534       1,087,040       (1 )%     3 %
    Total deposits $ 5,699,757     $ 5,765,784     $ 5,600,652     $ 5,727,015     $ 5,630,155       (1 )%     1 %
                                                       
      Average Balance Sheet
      (Dollars in Thousands, Unaudited)
      Three Months Ended
      June 30, 2025 March 31, 2025 June 30, 2024
      Average
    Balance    		 Interest(4)(6) Average
    Rate(4)    		 Average
    Balance    		 Interest(4)(6) Average
    Rate(4)    		 Average
    Balance    		 Interest(4)(6) Average
    Rate(4)
    Assets                  
    Interest earning assets                  
    Interest earning deposits (incl. Fed Funds Sold) $ 72,993   $ 830     4.56 % $ 223,148   $ 2,487     4.52 % $ 55,467   $ 738     5.35 %
    Federal Home Loan Bank stock   45,412     1,075     9.49 %   51,769     1,012     7.93 %   53,827     1,521     11.36 %
    Investment securities – taxable (1)   959,238     4,867     2.03 %   974,109     5,027     2.09 %   1,309,305     6,465     1.99 %
    Investment securities – non-taxable (1)   1,100,731     7,706     2.81 %   1,120,249     7,838     2.84 %   1,132,065     8,072     2.87 %
    Total investment securities   2,059,969     12,573     2.45 %   2,094,358     12,865     2.49 %   2,441,370     14,537     2.39 %
    Loans receivable (2) (3)   4,947,093     79,000     6.41 %   4,865,449     74,840     6.24 %   4,662,124     72,208     6.23 %
    Total interest earning assets   7,125,467     93,478     5.26 %   7,234,724     91,204     5.11 %   7,212,788     89,004     4.96 %
    Non-interest earning assets                  
    Cash and due from banks   86,316         88,624         108,319      
    Allowance for credit losses   (52,560 )       (51,863 )       (50,334 )    
    Other assets   472,175         483,765         508,555      
    Total average assets $ 7,631,398       $ 7,755,250       $ 7,779,328      
                       
    Liabilities and Stockholders’ Equity                  
    Interest bearing liabilities                  
    Interest bearing demand deposits $ 1,727,713   $ 6,803     1.58 % $ 1,750,446   $ 6,491     1.50 % $ 1,656,523   $ 7,081     1.72 %
    Saving and money market deposits   1,651,866     8,200     1.99 %   1,674,590     8,263     2.00 %   1,677,967     9,733     2.33 %
    Time deposits   1,233,582     11,050     3.59 %   1,212,386     10,847     3.63 %   1,134,590     11,633     4.12 %
    Total Deposits   4,613,161     26,053     2.27 %   4,637,422     25,601     2.24 %   4,469,080     28,447     2.56 %
    Borrowings   847,862     7,777     3.68 %   971,496     8,772     3.66 %   1,184,172     10,278     3.49 %
    Repurchase agreements   88,058     394     1.79 %   88,469     416     1.91 %   125,144     935     3.00 %
    Subordinated notes   55,785     829     5.96 %   55,750     829     6.03 %   55,647     829     5.99 %
    Junior subordinated debentures issued to capital trusts   57,550     1,070     7.46 %   57,497     1,290     9.10 %   57,335     1,213     8.51 %
    Total interest bearing liabilities   5,662,416     36,123     2.56 %   5,810,634     36,908     2.58 %   5,891,378     41,702     2.85 %
    Non-interest bearing liabilities                  
    Demand deposits   1,114,982         1,085,826         1,080,676      
    Accrued interest payable and other liabilities   64,465         78,521         80,942      
    Stockholders’ equity   789,535         780,269         726,332      
    Total average liabilities and stockholders’ equity $ 7,631,398       $ 7,755,250       $ 7,779,328      
    Net FTE interest income (non-GAAP) (5)   $ 57,355       $ 54,296       $ 47,302    
    Less FTE adjustments (4)     2,001         2,029         2,023    
    Net Interest Income   $ 55,354       $ 52,267       $ 45,279    
    Net FTE interest margin (Non-GAAP) (4)(5)       3.23 %       3.04 %       2.64 %
     
    (1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
    (2) Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
    (3) Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
    (4) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.
    (5) Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
    (6) Includes dividend income on Federal Home Loan Bank stock
     
      Credit Quality        
      (Dollars in Thousands Except Ratios, Unaudited)        
      Quarter Ended        
      June 30,   March 31,   December 31,   September 30,   June 30,   % Change
      2025   2025   2024   2024   2024   Q2’25 vs
    Q1’25    		   Q2’25 vs
    Q2’24
    Non-accrual loans                          
    Commercial $ 7,547     $ 8,172     $ 5,658     $ 6,830     $ 4,321       (8 )%     75 %
    Residential Real estate   9,525       12,763       11,215       9,529       8,489       (25 )%     12 %
    Mortgage warehouse   —       —       —       —       —       — %     — %
    Consumer   7,222       7,875       8,919       7,208       5,453       (8 )%     32 %
    Total non-accrual loans   24,294       28,810       25,792       23,567       18,263       (16 )%     33 %
    90 days and greater delinquent – accruing interest   2,113       1,582       1,166       819       1,039       34 %     103 %
    Total non-performing loans $ 26,407     $ 30,392     $ 26,958     $ 24,386     $ 19,302       (13 )%     37 %
                               
    Other real estate owned                          
    Commercial $ 176     $ 360     $ 407     $ 1,158     $ 1,111       (51 )%     (84 )%
    Residential Real estate   463       641       —       —       —       — %     — %
    Mortgage warehouse   —       —       —       —       —       — %     — %
    Consumer   480       34       17       36       57       1311 %     742 %
    Total other real estate owned   1,119       1,035       424       1,194       1,168       8 %     (4 )%
                               
    Total non-performing assets $ 27,526     $ 31,427     $ 27,382     $ 25,580     $ 20,470       (12 )%     34 %
                               
    Loan data:                          
    Accruing 30 to 89 days past due loans $ 31,401     $ 19,034     $ 23,075     $ 18,087     $ 19,785       65 %     59 %
    Substandard loans   64,100       66,714       64,535       59,775       51,221       (4 )%     25 %
    Net charge-offs (recoveries)                          
    Commercial $ 84     $ (47 )   $ (32 )   $ (52 )   $ 57       (279 )%     47 %
    Residential Real estate   52       (47 )     (10 )     (9 )     (4 )     (211 )%     (1400 )%
    Mortgage warehouse   —       —       —       —       —       — %     — %
    Consumer   118       963       668       439       534       (88 )%     (78 )%
    Total net charge-offs $ 254     $ 869     $ 626     $ 378     $ 587       (71 )%     (57 )%
                               
    Allowance for credit losses                          
    Commercial $ 34,413     $ 32,640     $ 30,953     $ 32,854     $ 31,941       5 %     8 %
    Residential Real estate   3,229       3,167       2,715       2,675       2,588       2 %     25 %
    Mortgage warehouse   —       —       —       862       736       — %     (100 )%
    Consumer   16,757       16,847       18,312       16,490       16,950       (1 )%     (1 )%
    Total allowance for credit losses $ 54,399     $ 52,654     $ 51,980     $ 52,881     $ 52,215       3 %     4 %
                               
    Credit quality ratios                          
    Non-accrual loans to HFI loans   0.49 %     0.59 %     0.53 %     0.49 %     0.38 %        
    Non-performing assets to total assets   0.36 %     0.41 %     0.35 %     0.32 %     0.26 %        
    Annualized net charge-offs of average total loans   0.02 %     0.07 %     0.05 %     0.03 %     0.05 %        
    Allowance for credit losses to HFI loans   1.09 %     1.07 %     1.07 %     1.10 %     1.08 %        
                                                   
    Non–GAAP Reconciliation of Net Fully-Taxable Equivalent (“FTE”) Interest Margin
    (Dollars in Thousands, Unaudited)
     
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025   2025   2024   2024   2024
    Interest income (GAAP) (A)   $ 91,477     $ 89,175     $ 93,350     $ 90,888     $ 86,981  
    Taxable-equivalent adjustment:                      
    Investment securities – tax exempt (1)       1,619       1,646       1,675       1,677       1,695  
    Loan receivable (2)       382       383       395       340       328  
    Interest income (non-GAAP) (B)     93,478       91,204       95,420       92,905       89,004  
    Interest expense (GAAP) (C)     36,123       36,908       40,223       43,978       41,702  
    Net interest income (GAAP) (D) =(A) – (C)   $ 55,354     $ 52,267     $ 53,127     $ 46,910     $ 45,279  
    Net FTE interest income (non-GAAP) (E) = (B) – (C)   $ 57,355     $ 54,296     $ 55,197     $ 48,927     $ 47,302  
    Average interest earning assets (F)     7,125,467       7,234,724       7,396,178       7,330,263       7,212,788  
    Net FTE interest margin (non-GAAP) (G) = (E*) / (F)     3.23 %     3.04 %     2.97 %     2.66 %     2.64 %
                           
    (1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
    (2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
    *Annualized
     
    Non–GAAP Reconciliation of Return on Average Tangible Common Equity
    (Dollars in Thousands, Unaudited)
     
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025   2025   2024   2024   2024
                           
    Net income (loss) (GAAP) (A)   $ 20,643     $ 23,941     $ (10,882 )   $ 18,180     $ 14,140  
                           
    Average stockholders’ equity (B)   $ 789,535     $ 780,269     $ 755,340     $ 738,372     $ 726,332  
    Average intangible assets (C)     164,320       165,138       165,973       166,819       167,659  
    Average tangible equity (Non-GAAP) (D) = (B) – (C)   $ 625,215     $ 615,131     $ 589,367     $ 571,553     $ 558,673  
    Return on average tangible common equity (“ROACE”) (non-GAAP) (E) = (A*) / (D)     13.24 %     15.48 %   (7.35 )%     12.65 %     10.18 %
    *Annualized                      
    Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
    (Dollars in Thousands, Unaudited)
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025   2025   2024   2024   2024
    Total stockholders’ equity (GAAP) (A)   $ 790,852     $ 776,061     $ 763,582     $ 754,822     $ 726,665  
    Intangible assets (end of period) (B)     163,802       164,618       165,434       166,278       167,121  
    Total tangible common equity (non-GAAP) (C) = (A) – (B)   $ 627,050     $ 611,443     $ 598,148     $ 588,544     $ 559,544  
                           
    Total assets (GAAP) (D)   $ 7,652,051     $ 7,628,636     $ 7,801,146     $ 7,927,457     $ 7,912,527  
    Intangible assets (end of period) (B)     163,802       164,618       165,434       166,278       167,121  
    Total tangible assets (non-GAAP) (E) = (D) – (B)   $ 7,488,249     $ 7,464,018     $ 7,635,712     $ 7,761,179     $ 7,745,406  
                           
    Tangible common equity to tangible assets (Non-GAAP) (G) = (C) / (E)     8.37 %     8.19 %     7.83 %     7.58 %     7.22 %
                                               
    Non–GAAP Reconciliation of Tangible Book Value Per Share
    (Dollars in Thousands, Unaudited)
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025
    		   2025
    		   2024
    		   2024
    		   2024
    Total stockholders’ equity (GAAP) (A)   $ 790,852     $ 776,061     $ 763,582     $ 754,822     $ 726,665  
    Intangible assets (end of period) (B)     163,802       164,618       165,434       166,278       167,121  
    Total tangible common equity (non-GAAP) (C) = (A) – (B)   $ 627,050     $ 611,443     $ 598,148     $ 588,544     $ 559,544  
    Common shares outstanding (D)     43,801,507       43,786,000       43,722,086       43,712,059       43,712,059  
                           
    Tangible book value per common share (non-GAAP) (E) = (C) / (D)   $ 14.32     $ 13.96     $ 13.68     $ 13.46     $ 12.80  
                                               
    Contact: John R. Stewart, CFA
      EVP, Chief Financial Officer
    Phone: (219) 814–5833
    Fax: (219) 874–9280
    Date: July 23, 2025

    The MIL Network –

  • MIL-OSI: Horizon Bancorp, Inc. Reports Strong Second Quarter 2025 Results Led by Continued Net Interest Margin Expansion

    Source: GlobeNewswire (MIL-OSI)

    MICHIGAN CITY, Ind., July 23, 2025 (GLOBE NEWSWIRE) — (NASDAQ GS: HBNC) – Horizon Bancorp, Inc. (“Horizon” or the “Company”), the parent company of Horizon Bank (the “Bank”), announced its unaudited financial results for the three months ended June 30, 2025.

    “Horizon’s second quarter earnings reflect the strength of the organization’s exceptional core community banking franchise. Strong loan growth, stable and granular core funding, excellent credit quality and prudent management of expenses fueled the quarter’s positive results and expanded on management’s commitment to improve the financial performance of the Company. The quarter was highlighted by a seventh consecutive quarter of net interest margin expansion, low net charge offs of 2 bps annualized and enhanced momentum in key performance metrics of ROAA and ROATCE”, President and CEO, Thomas Prame stated. “We continue to show strength across our core community banking platform that is being driven by a disciplined approach to creating a more efficient balance sheet and effective deployment of capital. We are pleased with our results through the first six months of 2025, with reported earnings per share growing by 58% versus the comparable period a year ago, and look forward to continuing to create additional shareholder value throughout the remainder of the year.”

    Net income for the three months ended June 30, 2025 was $20.6 million, or $0.47 per diluted share, compared to net income of $23.9 million, or $0.54, for the first quarter of 2025 and compared to net income of $14.1 million, or $0.32 per diluted share, for the second quarter of 2024. As previously disclosed, results in the first quarter of 2025 included the $7.0 million pre-tax gain on the sale of the Company’s mortgage warehouse business.

    Net income for the six months ended June 30, 2025 was $44.6 million, or $1.01 per diluted share, compared to net income of $28.1 million, or $0.64, for the six months ended June 30, 2024.

    Second Quarter 2025 Highlights

    • Net interest income of $55.4 million increased 5.9% compared with $52.3 million for the three months ended March 31, 2025, and 22.3% compared with $45.3 million in the year ago period. Net interest margin, on a fully taxable equivalent (“FTE”) basis1, expanded for the seventh consecutive quarter, to 3.23%, compared with 3.04% for the three months ended March 31, 2025 and 2.64% for the three months ended June 30, 2024.
    • Total loans held for investment (“HFI”) increased 6.2% compared to the linked quarter annualized, with strong organic commercial loan growth of $117.2 million, or 14.8% annualized. This growth was partially funded by the continued strategic runoff of lower yielding indirect auto loans of approximately $34.1 million.
    • Funding continued to trend favorably, with non-time deposit balances remaining relatively flat for the fourth consecutive quarter and interest-bearing liability cost declining by another 2 bps during the quarter.
    • Credit quality remained strong, with annualized net charge offs of 0.02% of average loans during the second quarter. Non-performing assets remain well within expected ranges, decreasing 12.4% from the prior quarter.
    • Expenses continued to be well managed, up less than 1% from the first quarter of 2025. These results reflect management’s commitment to generate higher earnings while maintaining a more efficient expense base.

    ____________________________________
    1     Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

       
      Financial Highlights
      (Dollars in Thousands Except Share and Per Share Data and Ratios)
      Three Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,
      2025   2025   2024   2024   2024
    Income statement:                  
    Net interest income $ 55,354     $ 52,267     $ 53,127     $ 46,910     $ 45,279  
    Provision for credit loss expense   2,462       1,376       1,171       1,044       2,369  
    Non-interest income (loss)   10,920       16,499       (28,954 )     11,511       10,485  
    Non-interest expense   39,417       39,306       44,935       39,272       37,522  
    Income tax expense (benefit)   3,752       4,141       (11,051 )     (75 )     1,733  
    Net Income (Loss) $ 20,643     $ 23,943     $ (10,882 )   $ 18,180     $ 14,140  
                       
    Per share data:                  
    Basic earnings (loss) per share $ 0.47     $ 0.55     $ (0.25 )   $ 0.42     $ 0.32  
    Diluted earnings (loss) per share   0.47       0.54       (0.25 )     0.41       0.32  
    Cash dividends declared per common share   0.16       0.16       0.16       0.16       0.16  
    Book value per common share   18.06       17.72       17.46       17.27       16.62  
    Market value – high   15.88       17.76       18.76       16.57       12.74  
    Market value – low   12.92       15.00       14.57       11.89       11.29  
    Weighted average shares outstanding – Basic   43,794,490       43,777,109       43,721,211       43,712,059       43,712,059  
    Weighted average shares outstanding – Diluted   44,034,663       43,954,164       43,721,211       44,112,321       43,987,187  
    Common shares outstanding (end of period)   43,801,507       43,785,932       43,722,086       43,712,059       43,712,059  
                       
    Key ratios:                  
    Return on average assets   1.08 %     1.25 %   (0.56 )%     0.92 %     0.73 %
    Return on average stockholders’ equity   13.24       12.44       (5.73 )     9.80       7.83  
    Total equity to total assets   10.34       10.18       9.79       9.52       9.18  
    Total loans to deposit ratio   87.52       85.21       87.75       83.92       85.70  
    Allowance for credit losses to HFI loans   1.09       1.07       1.07       1.10       1.08  
    Annualized net charge-offs of average total loans (1)   0.02       0.07       0.05       0.03       0.05  
    Efficiency ratio   59.48       57.16       185.89       67.22       67.29  
                       
    Key metrics (Non-GAAP) (2)                  
    Net FTE interest margin   3.23 %     3.04 %     2.97 %     2.66 %     2.64 %
    Return on average tangible common equity   13.24       15.79       (7.35 )     12.65       10.18  
    Tangible common equity to tangible assets   8.37       8.19       7.83       7.58       7.22  
    Tangible book value per common share $ 14.32     $ 13.96     $ 13.68     $ 13.46     $ 12.80  
                       
                       
    (1) Average total loans includes loans held for investment and held for sale.
    (2) Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
     

    Income Statement Highlights

    Net Interest Income

    Net interest income was $55.4 million in the second quarter of 2025, compared to $52.3 million in the first quarter of 2025, driven by the continued expansion of the Company’s net FTE interest margin1, which increased to 3.23% for the second quarter of 2025, compared to 3.04% for the first quarter of 2025. Expansion was attributable to the favorable mix shift in average interest earning assets toward higher-yielding loans and in the average funding mix toward deposit balances, in addition to continued disciplined pricing strategies on both sides of the balance sheet. The second quarter net FTE interest margin did benefit by approximately seven basis points related to interest recoveries on certain commercial and residential loans.

    Provision for Credit Losses

    During the second quarter of 2025, the Company recorded a provision for credit losses of $2.5 million. This compares to a provision for credit losses of $1.4 million during the first quarter of 2025, and $2.4 million during the second quarter of 2024. The increase in the provision for credit losses during the second quarter of 2025 when compared with the first quarter of 2025 was primarily attributable to net growth in commercial loans HFI and changes in economic factors, partially offset by the reduction of specific reserves and the reserves for unfunded commitments in the current quarter.

    For the second quarter of 2025, the allowance for credit losses included net charge-offs of $0.3 million, or an annualized 0.02% of average loans outstanding, compared to net charge-offs of $0.9 million, or an annualized 0.07% of average loans outstanding for the first quarter of 2025, and net charge-offs of $0.6 million, or an annualized 0.05% of average loans outstanding, in the second quarter of 2024.

    The Company’s allowance for credit losses as a percentage of period-end loans HFI was 1.09% at June 30, 2025, compared to 1.07% at March 31, 2025 and 1.08% at June 30, 2024.

    Non-Interest Income

    For the Quarter Ended June 30,   March 31,   December 31,   September 30,   June 30,
    (Dollars in Thousands) 2025
    		   2025   2024   2024
    		   2024
    Non-interest Income                  
    Service charges on deposit accounts $ 3,208     $ 3,208     $ 3,276     $ 3,320     $ 3,130  
    Wire transfer fees   69       71       124       123       113  
    Interchange fees   3,403       3,241       3,353       3,511       3,826  
    Fiduciary activities   1,251       1,326       1,313       1,394       1,372  
    Loss on sale of investment securities   —       (407 )     (39,140 )     —       —  
    Gain on sale of mortgage loans   1,219       1,076       1,071       1,622       896  
    Mortgage servicing income net of impairment   375       385       376       412       450  
    Increase in cash value of bank owned life insurance   346       335       335       349       318  
    Other income   1,049       7,264       338       780       380  
    Total non-interest income (loss) $ 10,920     $ 16,499     $ (28,954 )   $ 11,511     $ 10,485  
                                           

    Total non-interest income was $10.9 million in the second quarter of 2025, compared to non-interest income of $16.5 million in the first quarter of 2025. The decrease in non-interest income of $5.6 million is due to the sale of the Company’s mortgage warehouse business to an unrelated third party in the first quarter of 2025, resulting in a pre-tax gain of $7.0 million that did not recur in the current period. Interchange fees and gain on sale of mortgage loans benefited from normal seasonality, while other categories remained relatively unchanged when compared with the prior period.

    ____________________________________
    1     Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Non-Interest Expense

    For the Quarter Ended June 30,   March 31,   December 31,   September 30,   June 30,
    (Dollars in Thousands) 2025
    		   2025
    		   2024
    		   2024
    		   2024
    Non-interest Expense                  
    Salaries and employee benefits $ 22,731     $ 22,414     $ 25,564     $ 21,829     $ 20,583  
    Net occupancy expenses   3,127       3,702       3,431       3,207       3,192  
    Data processing   2,951       2,872       2,841       2,977       2,579  
    Professional fees   735       826       736       676       714  
    Outside services and consultants   3,278       3,265       4,470       3,677       3,058  
    Loan expense   1,231       689       1,285       1,034       1,038  
    FDIC insurance expense   1,216       1,288       1,193       1,204       1,315  
    Core deposit intangible amortization   816       816       843       844       844  
    Merger related expenses   —       305       —       —       —  
    Other losses   245       228       371       297       515  
    Other expense   3,087       2,901       4,201       3,527       3,684  
    Total non-interest expense $ 39,417     $ 39,306     $ 44,935     $ 39,272     $ 37,522  
                                           

    Total non-interest expense was $39.4 million in the second quarter of 2025, compared with $39.3 million in the first quarter of 2025. The increase in non-interest expense during the second quarter of 2025 when compared with the prior period was primarily driven by a $0.5 million increase in loan expense. The increase was partially offset by a $0.6 million decrease in net occupancy expenses. Additionally, the Company incurred $0.3 million of direct expenses related to the sale of the mortgage warehouse business in the prior period that did not recur in the current period.   

    Income Taxes

    Horizon recorded a net tax expense of $3.8 million for the second quarter of 2025, representing an effective tax rate of 15.4%, which is consistent with the Company’s estimated annual effective tax rate.

    Balance Sheet Highlights

    Total assets increased by $23.4 million, or 0.3%, to $7.7 billion as of June 30, 2025, from $7.6 billion as of March 31, 2025. The increase in total assets is primarily due to increases in loans HFI and non-interest earning cash, partially offset by a decrease in interest earning cash and investment securities. Total investment securities decreased by $24.2 million, or 1.2%, to $2.1 billion as of June 30, 2025. Total loans were $5.0 billion at June 30, 2025, an increase of $75.5 million from March 31, 2025 balances, due to organic commercial loan growth net of continued runoff in the indirect consumer portfolio.

    Total deposits decreased by $66.0 million, or 1.1%, to $5.7 billion as of June 30, 2025 when compared to balances as of March 31, 2025. The decrease was partially related to a decline in time deposits of $51.9 million, or 4.2% and, to a lesser extent, a modest decrease in savings and money market deposits of $7.0 million, or 0.4%. Non-interest bearing deposit balances remained relatively unchanged in the current period. Total borrowings increased by $68.1 million during the quarter, to $880.3 million as of June 30, 2025. Balances subject to repurchase agreements increased by $7.2 million, to $95.1 million.

    Capital

    The following table presents the consolidated regulatory capital ratios of the Company for the previous three quarters, and the Company’s preliminary estimate of its consolidated regulatory capital ratios for the quarter ended June 30, 2025:

    For the Quarter Ended June 30,   March 31,   December 31,   September 30,
      2025*   2025   2024   2024
    Consolidated Capital Ratios              
    Total capital (to risk-weighted assets)   14.48 %     14.26 %     13.91 %     13.45 %
    Tier 1 capital (to risk-weighted assets)   12.52       12.33       12.00       11.63  
    Common equity tier 1 capital (to risk-weighted assets)   11.52       11.32       11.00       10.68  
    Tier 1 capital (to average assets)   9.59       9.25       8.88       9.02  
    *Preliminary estimate – may be subject to change    
         

    As of June 30, 2025, the ratio of total stockholders’ equity to total assets is 10.34%. Book value per common share was $18.06, increasing $0.34 during the second quarter of 2025.

    Tangible common equity3 totaled $627.1 million at June 30, 2025, and the ratio of tangible common equity to tangible assets1 was 8.37% at June 30, 2025, up from 8.19% at March 31, 2025. Tangible book value, which excludes intangible assets from total equity, per common share1 was $14.32, increasing $0.36 during the second quarter of 2025 behind the growth in retained earnings.

    Credit Quality

    As of June 30, 2025, total non-accrual loans decreased by $4.5 million, or 15.7%, from March 31, 2025, to 0.49% of total loans HFI. Total non-performing assets decreased $3.9 million, or 12.4%, to $27.5 million, compared to $31.4 million as of March 31, 2025. The ratio of non-performing assets to total assets decreased to 0.36% compared to 0.41% as of March 31, 2025.

    As of June 30, 2025, net charge-offs decreased by $0.6 million to $0.3 million, compared to $0.9 million as of March 31, 2025 and remain just 0.02% annualized of average loans.

    ____________________________________
    1     Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.

    Earnings Conference Call

    As previously announced, Horizon will host a conference call to review its second quarter financial results and operating performance.

    Participants may access the live conference call on July 24, 2025 at 7:30 a.m. CT (8:30 a.m. ET) by dialing 833-974-2379 from the United States, 866-450-4696 from Canada or 1-412-317-5772 from international locations and requesting the “Horizon Bancorp, Inc. Call.” Participants are asked to dial in approximately 10 minutes prior to the call.

    A telephone replay of the call will be available approximately one hour after the end of the conference through August 1, 2025. The replay may be accessed by dialing 877-344-7529 from the United States, 855-669-9658 from Canada or 1–412–317-0088 from other international locations, and entering the access code 5878909.

    About Horizon Bancorp, Inc.

    Horizon Bancorp, Inc. (NASDAQ GS: HBNC) is the $7.7 billion-asset commercial bank holding company for Horizon Bank, which serves customers across diverse and economically attractive Midwestern markets through convenient digital and virtual tools, as well as its Indiana and Michigan branches. Horizon’s retail offerings include prime residential and other secured consumer lending to in-market customers, as well as a range of personal banking and wealth management solutions. Horizon also provides a comprehensive array of in-market business banking and treasury management services, as well as equipment financing solutions for customers regionally and nationally, with commercial lending representing over half of total loans. More information on Horizon, headquartered in Northwest Indiana’s Michigan City, is available at horizonbank.com and investor.horizonbank.com.

    Use of Non-GAAP Financial Measures

    Certain information set forth in this press release refers to financial measures determined by methods other than in accordance with GAAP. Specifically, we have included non-GAAP financial measures relating to net income, diluted earnings per share, pre-tax, pre-provision net income, net interest margin, tangible stockholders’ equity and tangible book value per share, efficiency ratio, the return on average assets, the return on average common equity, and return on average tangible equity. In each case, we have identified special circumstances that we consider to be non-recurring and have excluded them. Horizon believes these non-GAAP financial measures are helpful to investors and provide a greater understanding of our business and financial results without giving effect to one-time costs and non–recurring items. These measures are not necessarily comparable to similar measures that may be presented by other companies and should not be considered in isolation or as a substitute for the related GAAP measure. See the tables and other information below and contained elsewhere in this press release for reconciliations of the non-GAAP information identified herein and its most comparable GAAP measures.

    Forward Looking Statements

    This press release may contain forward–looking statements regarding the financial performance, business prospects, growth and operating strategies of Horizon Bancorp, Inc. and its affiliates (collectively, “Horizon”). For these statements, Horizon claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Statements in this press release should be considered in conjunction with the other information available about Horizon, including the information in the filings we make with the Securities and Exchange Commission (the “SEC”). Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance. The forward-looking statements are based on management’s expectations and are subject to a number of risks and uncertainties. We have tried, wherever possible, to identify such statements by using words such as “anticipate,” “estimate,” “project,” “intend,” “plan,” “believe,” “will” and similar expressions in connection with any discussion of future operating or financial performance.

    Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include: effects on Horizon’s business resulting from new U.S. domestic or foreign governmental trade measures, including but not limited to tariffs, import and export controls, foreign exchange intervention accomplished to offset the effects of trade policy or in response to currency volatility, and other restrictions on free trade; uncertain conditions within the domestic and international macroeconomic environment, including trade policy, monetary and fiscal policy, and conditions in the investment, credit, interest rate, and derivatives markets, and their impact on Horizon and its customers; current financial conditions within the banking industry; changes in the level and volatility of interest rates, changes in spreads on earning assets and changes in interest bearing liabilities; increased interest rate sensitivity; the aggregate effects of elevated inflation levels in recent years; loss of key Horizon personnel; increases in disintermediation; potential loss of fee income, including interchange fees, as new and emerging alternative payment platforms take a greater market share of the payment systems; estimates of fair value of certain of Horizon’s assets and liabilities; changes in prepayment speeds, loan originations, credit losses, market values, collateral securing loans and other assets; changes in sources of liquidity; legislative and regulatory actions and reforms; changes in accounting policies or procedures as may be adopted and required by regulatory agencies; litigation, regulatory enforcement, and legal compliance risk and costs; rapid technological developments and changes; cyber terrorism and data security breaches; the rising costs of cybersecurity; the ability of the U.S. federal government to manage federal debt limits; climate change and social justice initiatives; the inability to realize cost savings or revenues or to effectively implement integration plans and other consequences associated with mergers, acquisitions, and divestitures; acts of terrorism, war and global conflicts, such as the Russia and Ukraine conflict and the Israel and Hamas conflict; and supply chain disruptions and delays. These and additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in Horizon’s reports (such as the Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K) filed with the SEC and available at the SEC’s website (www.sec.gov). Undue reliance should not be placed on the forward–looking statements, which speak only as of the date hereof. Horizon does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions that may be made to update any forward-looking statement to reflect the events or circumstances after the date on which the forward–looking statement is made, or reflect the occurrence of unanticipated events, except to the extent required by law.

       
      Condensed Consolidated Statements of Income
      (Dollars in Thousands Except Per Share Data, Unaudited)
      Three Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,
      2025
    		   2025   2024   2024   2024
    Interest Income                  
    Loans receivable $ 78,618     $ 74,457     $ 76,747     $ 75,488     $ 71,880  
    Investment securities – taxable   5,941       6,039       6,814       8,133       7,986  
    Investment securities – tax-exempt   6,088       6,192       6,301       6,310       6,377  
    Other   830       2,487       3,488       957       738  
    Total interest income   91,477       89,175       93,350       90,888       86,981  
    Interest Expense                  
    Deposits   26,053       25,601       27,818       30,787       28,447  
    Borrowed funds   8,171       9,188       10,656       11,131       11,213  
    Subordinated notes   829       829       829       830       829  
    Junior subordinated debentures issued to capital trusts   1,070       1,290       920       1,230       1,213  
    Total interest expense   36,123       36,908       40,223       43,978       41,702  
    Net Interest Income   55,354       52,267       53,127       46,910       45,279  
    Provision for credit loss expense   2,462       1,376       1,171       1,044       2,369  
    Net Interest Income after Provision for Credit Losses   52,892       50,891       51,956       45,866       42,910  
    Non-interest Income                  
    Service charges on deposit accounts   3,208       3,208       3,276       3,320       3,130  
    Wire transfer fees   69       71       124       123       113  
    Interchange fees   3,403       3,241       3,353       3,511       3,826  
    Fiduciary activities   1,251       1,326       1,313       1,394       1,372  
    Gains (losses) on sale of investment securities   —       (407 )     (39,140 )     —       —  
    Gain on sale of mortgage loans   1,219       1,076       1,071       1,622       896  
    Mortgage servicing income net of impairment   375       385       376       412       450  
    Increase in cash value of bank owned life insurance   346       335       335       349       318  
    Other income   1,049       7,264       338       780       380  
    Total non-interest income (loss)   10,920       16,499       (28,954 )     11,511       10,485  
    Non-interest Expense                  
    Salaries and employee benefits   22,731       22,414       25,564       21,829       20,583  
    Net occupancy expenses   3,127       3,702       3,431       3,207       3,192  
    Data processing   2,951       2,872       2,841       2,977       2,579  
    Professional fees   735       826       736       676       714  
    Outside services and consultants   3,278       3,265       4,470       3,677       3,058  
    Loan expense   1,231       689       1,285       1,034       1,038  
    FDIC insurance expense   1,216       1,288       1,193       1,204       1,315  
    Core deposit intangible amortization   816       816       843       844       844  
    Merger related expenses   —       305       —       —       —  
    Other losses   245       228       371       297       515  
    Other expense   3,087       2,901       4,201       3,527       3,684  
    Total non-interest expense   39,417       39,306       44,935       39,272       37,522  
    Income (Loss) Before Income Taxes   24,395       28,084       (21,933 )     18,105       15,873  
    Income tax expense (benefit)   3,752       4,141       (11,051 )     (75 )     1,733  
    Net Income (Loss) $ 20,643     $ 23,943     $ (10,882 )   $ 18,180     $ 14,140  
    Basic Earnings (Loss) Per Share $ 0.47     $ 0.55     $ (0.25 )   $ 0.42     $ 0.32  
    Diluted Earnings (Loss) Per Share   0.47       0.54       (0.25 )     0.41       0.32  
                                           
      Condensed Consolidated Balance Sheet
      (Dollars in Thousands, Unaudited)
      Three Months Ended for the Period
      June 30,   March 31,   December 31,   September 30,   June 30,
      2025   2025   2024   2024   2024
    Assets                  
    Interest earning assets                  
    Federal funds sold $ 2,024     $ —     $ —     $ 113,912     $ 34,453  
    Interest earning deposits   34,174       80,023       201,131       12,107       4,957  
    Interest earning time deposits   —       —       735       735       1,715  
    Federal Home Loan Bank stock   45,412       45,412       53,826       53,826       53,826  
    Investment securities, available for sale   231,999       231,431       233,677       541,170       527,054  
    Investment securities, held to maturity   1,819,087       1,843,851       1,867,690       1,888,379       1,904,281  
    Loans held for sale   2,994       3,253       67,597       2,069       2,440  
    Gross loans held for investment (HFI)   4,985,582       4,909,815       4,847,040       4,803,996       4,822,840  
    Total Interest earning assets   7,121,272       7,113,784       7,271,696       7,416,194       7,351,566  
    Non-interest earning assets                  
    Allowance for credit losses   (54,399 )     (52,654 )     (51,980 )     (52,881 )     (52,215 )
    Cash   101,719       89,643       92,300       108,815       106,691  
    Cash value of life insurance   37,755       37,409       37,450       37,115       36,773  
    Other assets   148,773       143,675       152,635       119,026       165,656  
    Goodwill   155,211       155,211       155,211       155,211       155,211  
    Other intangible assets   8,592       9,407       10,223       11,067       11,910  
    Premises and equipment, net   93,398       93,499       93,864       93,544       93,695  
    Interest receivable   39,730       38,663       39,747       39,366       43,240  
    Total non-interest earning assets   530,779       514,855       529,450       511,263       560,961  
    Total assets $ 7,652,051     $ 7,628,639     $ 7,801,146     $ 7,927,457     $ 7,912,526  
    Liabilities                  
    Savings and money market deposits $ 3,385,413     $ 3,393,371     $ 3,446,681     $ 3,420,827     $ 3,364,726  
    Time deposits   1,193,180       1,245,088       1,089,153       1,220,653       1,178,389  
    Borrowings   880,336       812,218       1,142,340       1,142,744       1,229,165  
    Repurchase agreements   95,089       87,851       89,912       122,399       128,169  
    Subordinated notes   55,807       55,772       55,738       55,703       55,668  
    Junior subordinated debentures issued to capital trusts   57,583       57,531       57,477       57,423       57,369  
    Total interest earning liabilities   5,667,408       5,651,832       5,881,301       6,019,749       6,013,486  
    Non-interest bearing deposits   1,121,163       1,127,324       1,064,818       1,085,535       1,087,040  
    Interest payable   14,007       11,441       11,137       11,400       11,240  
    Other liabilities   58,621       61,981       80,308       55,951       74,096  
    Total liabilities   6,861,199       6,852,578       7,037,564       7,172,635       7,185,862  
    Stockholders’ Equity                  
    Preferred stock   —       —       —       —       —  
    Common stock   —       —       —       —       —  
    Additional paid-in capital   360,758       360,522       363,761       358,453       357,673  
    Retained earnings   466,497       452,945       436,122       454,050       442,977  
    Accumulated other comprehensive (loss)   (36,403 )     (37,406 )     (36,301 )     (57,681 )     (73,985 )
    Total stockholders’ equity   790,852       776,061       763,582       754,822       726,665  
    Total liabilities and stockholders’ equity $ 7,652,051     $ 7,628,639     $ 7,801,146     $ 7,927,457     $ 7,912,527  
                                           
      Loans and Deposits        
      (Dollars in Thousands, Unaudited)        
      June 30,   March 31,   December 31,   September 30,   June 30,   % Change
      2025
    		   2025
    		   2024
    		   2024
    		   2024
    		   Q2’25 vs
    Q1’25    		   Q2’25 vs
    Q2’24
    Loans:                          
    Commercial real estate $ 2,321,951     $ 2,262,910     $ 2,202,858     $ 2,105,459     $ 2,117,772       3 %     10 %
    Commercial & Industrial   976,740       918,541       875,297       808,600       786,788       6 %     24 %
    Total commercial   3,298,691       3,181,451       3,078,155       2,914,059       2,904,560       4 %     14 %
    Residential Real estate   786,026       801,726       802,909       801,356       797,956       (2 )%     (1 )%
    Mortgage warehouse   —       —       —       80,437       68,917       — %     (100 )%
    Consumer   900,865       926,638       965,976       1,008,144       1,051,407       (3 )%     (14 )%
    Total loans held for investment   4,985,582       4,909,815       4,847,040       4,803,996       4,822,840       2 %     3 %
    Loans held for sale   2,994       3,253       67,597       2,069       2,440       (8 )%     23 %
    Total loans $ 4,988,576     $ 4,913,068     $ 4,914,637     $ 4,806,065     $ 4,825,280       2 %     3 %
                               
    Deposits:                          
    Interest bearing deposits $ 1,713,058     $ 1,713,991     $ 1,767,983     $ 1,688,998     $ 1,653,508       — %     4 %
    Savings and money market deposits   1,672,355       1,679,380       1,678,697       1,731,830       1,711,218       — %     (2 )%
    Time deposits   1,193,180       1,245,088       1,089,153       1,220,653       1,178,389       (4 )%     1 %
    Total Interest bearing deposits   4,578,593       4,638,459       4,535,833       4,641,481       4,543,115       (1 )%     1 %
    Non-interest bearing deposits                          
    Non-interest bearing deposits   1,121,164       1,127,324       1,064,819       1,085,534       1,087,040       (1 )%     3 %
    Total deposits $ 5,699,757     $ 5,765,784     $ 5,600,652     $ 5,727,015     $ 5,630,155       (1 )%     1 %
                                                       
      Average Balance Sheet
      (Dollars in Thousands, Unaudited)
      Three Months Ended
      June 30, 2025 March 31, 2025 June 30, 2024
      Average
    Balance    		 Interest(4)(6) Average
    Rate(4)    		 Average
    Balance    		 Interest(4)(6) Average
    Rate(4)    		 Average
    Balance    		 Interest(4)(6) Average
    Rate(4)
    Assets                  
    Interest earning assets                  
    Interest earning deposits (incl. Fed Funds Sold) $ 72,993   $ 830     4.56 % $ 223,148   $ 2,487     4.52 % $ 55,467   $ 738     5.35 %
    Federal Home Loan Bank stock   45,412     1,075     9.49 %   51,769     1,012     7.93 %   53,827     1,521     11.36 %
    Investment securities – taxable (1)   959,238     4,867     2.03 %   974,109     5,027     2.09 %   1,309,305     6,465     1.99 %
    Investment securities – non-taxable (1)   1,100,731     7,706     2.81 %   1,120,249     7,838     2.84 %   1,132,065     8,072     2.87 %
    Total investment securities   2,059,969     12,573     2.45 %   2,094,358     12,865     2.49 %   2,441,370     14,537     2.39 %
    Loans receivable (2) (3)   4,947,093     79,000     6.41 %   4,865,449     74,840     6.24 %   4,662,124     72,208     6.23 %
    Total interest earning assets   7,125,467     93,478     5.26 %   7,234,724     91,204     5.11 %   7,212,788     89,004     4.96 %
    Non-interest earning assets                  
    Cash and due from banks   86,316         88,624         108,319      
    Allowance for credit losses   (52,560 )       (51,863 )       (50,334 )    
    Other assets   472,175         483,765         508,555      
    Total average assets $ 7,631,398       $ 7,755,250       $ 7,779,328      
                       
    Liabilities and Stockholders’ Equity                  
    Interest bearing liabilities                  
    Interest bearing demand deposits $ 1,727,713   $ 6,803     1.58 % $ 1,750,446   $ 6,491     1.50 % $ 1,656,523   $ 7,081     1.72 %
    Saving and money market deposits   1,651,866     8,200     1.99 %   1,674,590     8,263     2.00 %   1,677,967     9,733     2.33 %
    Time deposits   1,233,582     11,050     3.59 %   1,212,386     10,847     3.63 %   1,134,590     11,633     4.12 %
    Total Deposits   4,613,161     26,053     2.27 %   4,637,422     25,601     2.24 %   4,469,080     28,447     2.56 %
    Borrowings   847,862     7,777     3.68 %   971,496     8,772     3.66 %   1,184,172     10,278     3.49 %
    Repurchase agreements   88,058     394     1.79 %   88,469     416     1.91 %   125,144     935     3.00 %
    Subordinated notes   55,785     829     5.96 %   55,750     829     6.03 %   55,647     829     5.99 %
    Junior subordinated debentures issued to capital trusts   57,550     1,070     7.46 %   57,497     1,290     9.10 %   57,335     1,213     8.51 %
    Total interest bearing liabilities   5,662,416     36,123     2.56 %   5,810,634     36,908     2.58 %   5,891,378     41,702     2.85 %
    Non-interest bearing liabilities                  
    Demand deposits   1,114,982         1,085,826         1,080,676      
    Accrued interest payable and other liabilities   64,465         78,521         80,942      
    Stockholders’ equity   789,535         780,269         726,332      
    Total average liabilities and stockholders’ equity $ 7,631,398       $ 7,755,250       $ 7,779,328      
    Net FTE interest income (non-GAAP) (5)   $ 57,355       $ 54,296       $ 47,302    
    Less FTE adjustments (4)     2,001         2,029         2,023    
    Net Interest Income   $ 55,354       $ 52,267       $ 45,279    
    Net FTE interest margin (Non-GAAP) (4)(5)       3.23 %       3.04 %       2.64 %
     
    (1) Securities balances represent daily average balances for the fair value of securities. The average rate is calculated based on the daily average balance for the amortized cost of securities.
    (2) Includes fees on loans held for sale and held for investment. The inclusion of loan fees does not have a material effect on the average interest rate.
    (3) Non-accruing loans for the purpose of the computation above are included in the daily average loan amounts outstanding. Loan totals are shown net of unearned income and deferred loan fees.
    (4) Management believes fully taxable equivalent, or FTE, interest income is useful to investors in evaluating the Company’s performance as a comparison of the returns between a tax-free investment and a taxable alternative. The Company adjusts interest income and average rates for tax-exempt loans and securities to an FTE basis utilizing a 21% tax rate.
    (5) Non-GAAP financial metric. See non-GAAP reconciliation included herein for the most directly comparable GAAP measure.
    (6) Includes dividend income on Federal Home Loan Bank stock
     
      Credit Quality        
      (Dollars in Thousands Except Ratios, Unaudited)        
      Quarter Ended        
      June 30,   March 31,   December 31,   September 30,   June 30,   % Change
      2025   2025   2024   2024   2024   Q2’25 vs
    Q1’25    		   Q2’25 vs
    Q2’24
    Non-accrual loans                          
    Commercial $ 7,547     $ 8,172     $ 5,658     $ 6,830     $ 4,321       (8 )%     75 %
    Residential Real estate   9,525       12,763       11,215       9,529       8,489       (25 )%     12 %
    Mortgage warehouse   —       —       —       —       —       — %     — %
    Consumer   7,222       7,875       8,919       7,208       5,453       (8 )%     32 %
    Total non-accrual loans   24,294       28,810       25,792       23,567       18,263       (16 )%     33 %
    90 days and greater delinquent – accruing interest   2,113       1,582       1,166       819       1,039       34 %     103 %
    Total non-performing loans $ 26,407     $ 30,392     $ 26,958     $ 24,386     $ 19,302       (13 )%     37 %
                               
    Other real estate owned                          
    Commercial $ 176     $ 360     $ 407     $ 1,158     $ 1,111       (51 )%     (84 )%
    Residential Real estate   463       641       —       —       —       — %     — %
    Mortgage warehouse   —       —       —       —       —       — %     — %
    Consumer   480       34       17       36       57       1311 %     742 %
    Total other real estate owned   1,119       1,035       424       1,194       1,168       8 %     (4 )%
                               
    Total non-performing assets $ 27,526     $ 31,427     $ 27,382     $ 25,580     $ 20,470       (12 )%     34 %
                               
    Loan data:                          
    Accruing 30 to 89 days past due loans $ 31,401     $ 19,034     $ 23,075     $ 18,087     $ 19,785       65 %     59 %
    Substandard loans   64,100       66,714       64,535       59,775       51,221       (4 )%     25 %
    Net charge-offs (recoveries)                          
    Commercial $ 84     $ (47 )   $ (32 )   $ (52 )   $ 57       (279 )%     47 %
    Residential Real estate   52       (47 )     (10 )     (9 )     (4 )     (211 )%     (1400 )%
    Mortgage warehouse   —       —       —       —       —       — %     — %
    Consumer   118       963       668       439       534       (88 )%     (78 )%
    Total net charge-offs $ 254     $ 869     $ 626     $ 378     $ 587       (71 )%     (57 )%
                               
    Allowance for credit losses                          
    Commercial $ 34,413     $ 32,640     $ 30,953     $ 32,854     $ 31,941       5 %     8 %
    Residential Real estate   3,229       3,167       2,715       2,675       2,588       2 %     25 %
    Mortgage warehouse   —       —       —       862       736       — %     (100 )%
    Consumer   16,757       16,847       18,312       16,490       16,950       (1 )%     (1 )%
    Total allowance for credit losses $ 54,399     $ 52,654     $ 51,980     $ 52,881     $ 52,215       3 %     4 %
                               
    Credit quality ratios                          
    Non-accrual loans to HFI loans   0.49 %     0.59 %     0.53 %     0.49 %     0.38 %        
    Non-performing assets to total assets   0.36 %     0.41 %     0.35 %     0.32 %     0.26 %        
    Annualized net charge-offs of average total loans   0.02 %     0.07 %     0.05 %     0.03 %     0.05 %        
    Allowance for credit losses to HFI loans   1.09 %     1.07 %     1.07 %     1.10 %     1.08 %        
                                                   
    Non–GAAP Reconciliation of Net Fully-Taxable Equivalent (“FTE”) Interest Margin
    (Dollars in Thousands, Unaudited)
     
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025   2025   2024   2024   2024
    Interest income (GAAP) (A)   $ 91,477     $ 89,175     $ 93,350     $ 90,888     $ 86,981  
    Taxable-equivalent adjustment:                      
    Investment securities – tax exempt (1)       1,619       1,646       1,675       1,677       1,695  
    Loan receivable (2)       382       383       395       340       328  
    Interest income (non-GAAP) (B)     93,478       91,204       95,420       92,905       89,004  
    Interest expense (GAAP) (C)     36,123       36,908       40,223       43,978       41,702  
    Net interest income (GAAP) (D) =(A) – (C)   $ 55,354     $ 52,267     $ 53,127     $ 46,910     $ 45,279  
    Net FTE interest income (non-GAAP) (E) = (B) – (C)   $ 57,355     $ 54,296     $ 55,197     $ 48,927     $ 47,302  
    Average interest earning assets (F)     7,125,467       7,234,724       7,396,178       7,330,263       7,212,788  
    Net FTE interest margin (non-GAAP) (G) = (E*) / (F)     3.23 %     3.04 %     2.97 %     2.66 %     2.64 %
                           
    (1) The following represents municipal securities interest income for investment securities classified as available-for-sale and held-to-maturity
    (2) The following represents municipal loan interest income for loan receivables classified as held for sale and held for investment
    *Annualized
     
    Non–GAAP Reconciliation of Return on Average Tangible Common Equity
    (Dollars in Thousands, Unaudited)
     
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025   2025   2024   2024   2024
                           
    Net income (loss) (GAAP) (A)   $ 20,643     $ 23,941     $ (10,882 )   $ 18,180     $ 14,140  
                           
    Average stockholders’ equity (B)   $ 789,535     $ 780,269     $ 755,340     $ 738,372     $ 726,332  
    Average intangible assets (C)     164,320       165,138       165,973       166,819       167,659  
    Average tangible equity (Non-GAAP) (D) = (B) – (C)   $ 625,215     $ 615,131     $ 589,367     $ 571,553     $ 558,673  
    Return on average tangible common equity (“ROACE”) (non-GAAP) (E) = (A*) / (D)     13.24 %     15.48 %   (7.35 )%     12.65 %     10.18 %
    *Annualized                      
    Non–GAAP Reconciliation of Tangible Common Equity to Tangible Assets
    (Dollars in Thousands, Unaudited)
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025   2025   2024   2024   2024
    Total stockholders’ equity (GAAP) (A)   $ 790,852     $ 776,061     $ 763,582     $ 754,822     $ 726,665  
    Intangible assets (end of period) (B)     163,802       164,618       165,434       166,278       167,121  
    Total tangible common equity (non-GAAP) (C) = (A) – (B)   $ 627,050     $ 611,443     $ 598,148     $ 588,544     $ 559,544  
                           
    Total assets (GAAP) (D)   $ 7,652,051     $ 7,628,636     $ 7,801,146     $ 7,927,457     $ 7,912,527  
    Intangible assets (end of period) (B)     163,802       164,618       165,434       166,278       167,121  
    Total tangible assets (non-GAAP) (E) = (D) – (B)   $ 7,488,249     $ 7,464,018     $ 7,635,712     $ 7,761,179     $ 7,745,406  
                           
    Tangible common equity to tangible assets (Non-GAAP) (G) = (C) / (E)     8.37 %     8.19 %     7.83 %     7.58 %     7.22 %
                                               
    Non–GAAP Reconciliation of Tangible Book Value Per Share
    (Dollars in Thousands, Unaudited)
          Three Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,
          2025
    		   2025
    		   2024
    		   2024
    		   2024
    Total stockholders’ equity (GAAP) (A)   $ 790,852     $ 776,061     $ 763,582     $ 754,822     $ 726,665  
    Intangible assets (end of period) (B)     163,802       164,618       165,434       166,278       167,121  
    Total tangible common equity (non-GAAP) (C) = (A) – (B)   $ 627,050     $ 611,443     $ 598,148     $ 588,544     $ 559,544  
    Common shares outstanding (D)     43,801,507       43,786,000       43,722,086       43,712,059       43,712,059  
                           
    Tangible book value per common share (non-GAAP) (E) = (C) / (D)   $ 14.32     $ 13.96     $ 13.68     $ 13.46     $ 12.80  
                                               
    Contact: John R. Stewart, CFA
      EVP, Chief Financial Officer
    Phone: (219) 814–5833
    Fax: (219) 874–9280
    Date: July 23, 2025

    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: 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 Banking: Facilitator cites “strong engagement” in initial WTO reform consultations

    Source: WTO

    Headline: Facilitator cites “strong engagement” in initial WTO reform consultations

    Ambassador Ølberg, who was appointed by General Council Chair Ambassador Saqer Abdullah Almoqbel (Kingdom of Saudi Arabia) in early June to serve as facilitator for the reform discussions, noted that he has conducted two rounds of consultation involving nearly 100 members, with the discussion structured around three indicative tracks:

    governance (institutional issues)
    fairness (level playing field and balanced trade)
    “issues of our time”

    “What is already clear is this: across all three tracks, there is strong engagement, serious thinking, and a shared sense that reform is both necessary and urgent — even if views differ on the details,” the facilitator said.
    The “next phase of our work is about focus, discipline, and delivery,” he added. “From the consultations so far, one thing is clear — we have a wide range of perspectives … Our goal is not to solve every issue now. It’s to identify where ministers can add the guidance needed to move forward decisively after MC14.”
    At their 12th Ministerial Conference in 2022, WTO members agreed to undertake a comprehensive review of the WTO’s functions in order to ensure the organization is capable of responding more effectively to both the challenges facing the multilateral trading system and the opportunities provided by contemporary developments in global trade.
    Speaking after more than 60 members took the floor to react to the facilitator’s report, Director-General Ngozi Okonjo-Iweala said she was “encouraged with what I’m hearing.”
    “I agree with those who say that it’s somewhat existential for the organization to seize the opportunity to do this reform,” she said.  “It’s not unusual that views are initially divergent … that being said, there seems to be an unmistakable momentum.”
    A number of members noted the importance of dispute settlement reform, which is being addressed on a separate track. Addressing the General Council, Ambassador Almoqbel referred to his communication to members in early June stating that he and the Dispute Settlement Body (DSB) Chair, Ambassador Clare Kelly (New Zealand), would be closely monitoring the situation on dispute settlement reform and would revert to members at the appropriate time.
    Since that communication, the DSB Chair has been holding “low-key” conversations with members to “check the temperature,” Ambassador Almoqbel said, and these conversations are ongoing.
    Report of the Director-General
    Reporting to the General Council in her capacity as Chair of the Trade Negotiations Committee, Director-General Ngozi Okonjo-Iweala welcomed the submission of Argentina’s instrument of acceptance for the Agreement on Fisheries Subsidies. She noted that only five more acceptances are needed for the Agreement to enter into force, with several already in the pipeline.  She also noted the possibility of convening a special General Council meeting after the summer break to formally receive the additional instruments and mark the Agreement’s entry into force. 
    Regarding the negotiations on additional provisions to the Agreement, DG Okonjo-Iweala said she was encouraged by the strong support expressed by many members to move forward and conclude the negotiations. However, there was value in using the summer break to reflect on how best to advance the discussions, she said.
    The Director-General also invited members to use the summer break to reflect on how to collectively ensure movement on “the negotiating files”, including joint initiatives such as the Investment Facilitation for Development (IFD) Agreement.
    “We cannot have a jam on multilateral negotiations moving forward and a jam on plurilaterals,” DG Okonjo-Iweala said. Otherwise, members risk ending the year with nothing credible to take to the 14th Ministerial Conference (MC14) for consideration, she added. The world is “looking to the WTO, not as a source of stagnation or lack of action, but as a source of stability, predictability, a source of revitalization.”
    Twenty-four members took the floor after the Director-General’s intervention, some speaking on behalf of groups of members, highlighting their issues of interest. 
    Investment facilitation for development
    On the IFD initiative, members were once again unable to reach consensus on the request supported by 127 members to incorporate the IFD Agreement under Annex 4 of the Marrakesh Agreement establishing the WTO. This marked the ninth time the proposal has been submitted to members for adoption.
    Speaking on behalf of the 127 co-sponsors, the Republic of Korea underlined the urgent need to incorporate the Agreement into the WTO framework in order to help members attract investment, in particular for developing and least developed country members. The outlook for global foreign direct investment (FDI) in 2025 remains negative due to escalating trade tensions, geopolitical fragmentation and economic volatility, the Republic of Korea said. The IFD member parties believe that incorporating the Agreement into the WTO will reinforce the credibility and relevance of the organization.
    Three members reiterated their objections to incorporating the IFD Agreement into the WTO multilateral framework. They reiterated their openness to further discussions on the matter.
    Current trade tensions
    China once again introduced a proposal on supporting the multilateral trading system in the current situation. The proposal further elaborates on its “Stability, Development and Reform” (SDR) approach for the WTO, which calls for stability as the cornerstone, development as the priority, and reform as the pathway to support the multilateral trading system as it faces heightened trade turbulence. China said it stands ready to work with all members pragmatically and constructively to collectively safeguard and strengthen the rules-based multilateral trading system.
    Five members took the floor to respond to China’s intervention.
    Brazil introduced an agenda item on respecting the rules-based multilateral trading system. Brazil said the world was witnessing an unprecedented attack on the system and on the credibility of the WTO, with arbitrary tariffs disrupting global value chains and posing risks to the world economy. 
    Even more concerning is a dangerous shift towards the use of tariffs as a tool to interfere in the domestic affairs of third countries, Brazil said. It is essential that the WTO recover its role as a place where all countries can settle disputes and affirm legitimate interests through dialogue and negotiation, Brazil added.
    Fifteen members took the floor to react to Brazil’s statement. DG Okonjo-Iweala said the interventions underlined the importance of WTO reform and responding to the concerns expressed by members.
    Work Programme on Electronic Commerce – Report by the facilitator
    Ambassador Richard Brown (Jamaica), the facilitator for the WTO’s Work Programme on E-Commerce, reported on his recent consultations with members. He said that, overall, members overwhelmingly consider the work programme as an important aspect of the WTO engagement on e-commerce. They would like to see it preserved and made more effective, he added. 
    Ambassador Brown also noted that the “vast majority” of members support the extension of the WTO’s customs duties moratorium on electronic transmissions, with some preferring either longer periods for the moratorium or a permanent decision. At the same time, a few delegations continue to raise concerns related to revenue losses and policy space limitations, he added.
    Ministers at the 13th Ministerial Conference in 2024 agreed to maintain the moratorium until MC14 or 31 March 2026, whichever is earlier. Both the moratorium and the Work Programme are set to expire on that date. MC14 is scheduled for 26-29 March 2026.
    Transition support measures in favour of countries graduated from the LDC category
    Gambia, on behalf of the Group of Least Developed Countries (LDCs), introduced the group’s latest proposal regarding additional transition measures in favour of countries graduated from the LDC category. The measures are in recognition that the phasing-out of international support measures associated with LDC status can present challenges for graduating LDCs as they seek to integrate more fully into the global economy.
    Next meeting
    The next regular meeting of the General Council is tentatively scheduled for 6-7 October.

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    MIL OSI Global Banks –

  • MIL-Evening Report: Almost a third of NZ households face energy hardship – reform has to go beyond cheaper off-peak power

    Source: The Conversation (Au and NZ) – By Kimberley O’Sullivan, Senior Research Fellow, He Kainga Oranga – Housing and Health Research Programme, University of Otago

    Igor Suka/Getty Images

    The spotlight is again on New Zealand’s energy sector, with a group of industry bodies and independent retailers pushing for a market overhaul, saying the sector was “broken” and “driving up the cost of living”.

    The Commerce Commission and the Electricity Authority has already established a joint task force, after prices peaked in 2024, to investigate ways to improve the performance of the electricity market.

    The Authority recently announced new rules requiring larger electricity retailers to offer lower off-peak power prices from next year. The government is also expected to make further announcements on the sector.

    But the question is whether these changes will do enough to help New Zealanders live affordably in dry and warm homes.

    Some 30% of households face energy hardship. This means they struggle to afford or access sufficient energy to meet their daily needs.

    Caused by a combination of poor housing quality, high energy costs and the specific needs of vulnerable residents, energy hardship can lead to serious health issues and high hospital admission costs.

    We know from our own research over the past 18 years that having power disconnected can negatively affect health and wellbeing.

    People have told us that not being able to afford enough power to keep warm made them more likely to get sick and exacerbated existing health conditions. They described mental distress from unaffordable electricity and the threat of disconnection.

    Research participants used words such as “stressed”, “anxious” or “depressed”. They also spoke about having to choose between food and power bills.

    If power is disconnected, there can be additional costs from losing food in the fridge and freezer, as well as the problem of paying disconnection and reconnection fees when people already can’t afford the bill.

    What’s driving up power bills?

    In 2024, a “dry year” that increased the value of hydro generation, combined with lower-than-usual wind and declining supply of gas, resulted in wholesale electricity price spikes. But these winter shortages aren’t the only factor pushing up power bills.

    Electricity bills reflect several costs along the supply chain from generation to getting the electricity to the sockets in our homes. A new regulatory period for lines charges from April 2025 increased bills by $10 to $25 per month, depending on where you live.

    At the same time, low fixed daily charges are being phased out. This means the cost of being connected to the grid is the same no matter how much power is used.

    It is the poorest New Zealanders who are being hardest hit. The lowest income households spend a bigger proportion of their income on power compared to higher income households. Having electricity prices increase faster than inflation will put even more families at risk.

    The average household electricity bill was up 8.7% in May 2025 compared to June 2024. According to a recent Consumer NZ survey, 20% of respondents said they struggled to pay their power bill in the past year.

    Tackling hardship

    The new Consumer Care Obligations might help reduce some of the risks. Power companies must now comply with these obligations when working with households struggling to pay their bills, are facing disconnection or have someone in the home who is medically dependent on electricity.

    If households feel their power company is not meeting these obligations, they can contact Utilities Disputes, a free independent electricity and gas complaint resolution service, or the Electricity Authority.

    But multiple changes are needed to address the different parts of the energy hardship problem. Improving home energy efficiency through schemes like Warmer Kiwi Homes is crucial.

    Introducing an Energy Performance Rating for houses would make it easier for home buyers and renters to know how much it will cost to power a home before they move in. This would also help target energy hardship support.

    The government can also make electricity more affordable by supporting not-for-profit power companies. Another good move would be to help more households to install rooftop solar by providing access to long-term low-interest finance.

    Lower prices during off-peak hours are a good start. But it is clear the sheer size and complexity of the problems mean government action, with community and industry collaboration, needs to go beyond slightly cheaper electricity when there is less demand.

    Kimberley O’Sullivan receives funding from a Rutherford Discovery Fellowship administered by the Royal Society Te Apārangi, the Health Research Council, the Ministry of Business, Employment, and Innovation, and Lotteries Health Research.

    – ref. Almost a third of NZ households face energy hardship – reform has to go beyond cheaper off-peak power – https://theconversation.com/almost-a-third-of-nz-households-face-energy-hardship-reform-has-to-go-beyond-cheaper-off-peak-power-259140

    MIL OSI Analysis – EveningReport.nz –

  • 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: NASA Astronaut Jonny Kim, Axiom Mission 4 Commander Peggy Whitson Conduct Research in Space

    Source: NASA

    In this photo from June 28, 2025, Expedition 73 flight engineer Jonny Kim and former NASA astronaut and director of human spaceflight at Axiom Space Peggy Whitson work together inside the International Space Station’s Destiny laboratory module setting up hardware for cancer research.
    The hardware is used to culture patient-derived cancer cells, model their growth in microgravity, and test a state-of-the-art fluorescence microscope. Results of this study may lead to earlier cancer detection methods, development of advanced cancer treatments, and promote future stem cell research in space.
    Whitson returned to Earth on July 15, 2025, with fellow Axiom Mission 4 crew members ISRO (Indian Space Research Organisation) astronaut Shubhanshu Shukla, ESA (European Space Agency) project astronaut Sławosz Uznański-Wiśniewski of Poland, and Hungarian to Orbit (HUNOR) astronaut Tibor Kapu of Hungary. They completed about two and a half weeks in space.
    Image credit: JAXA (Japan Aerospace Exploration Agency)/Takuya Onishi

    MIL OSI USA News –

  • MIL-OSI USA: NASA, JAXA XRISM Satellite X-rays Milky Way’s Sulfur

    Source: NASA

    An international team of scientists have provided an unprecedented tally of elemental sulfur spread between the stars using data from the Japan-led XRISM (X-ray Imaging and Spectroscopy Mission) spacecraft.
    Astronomers used X-rays from two binary star systems to detect sulfur in the interstellar medium, the gas and dust found in the space between stars. It’s the first direct measurement of both sulfur’s gas and solid phases, a unique capability of X-ray spectroscopy, XRISM’s (pronounced “crism”) primary method of studying the cosmos. 
    “Sulfur is important for how cells function in our bodies here on Earth, but we still have a lot of questions about where it’s found out in the universe,” said Lía Corrales, an assistant professor of astronomy at the University of Michigan in Ann Arbor. “Sulfur can easily change from a gas to a solid and back again. The XRISM spacecraft provides the resolution and sensitivity we need to find it in both forms and learn more about where it might be hiding.”
    A paper about these results, led by Corrales, published June 27 in the Publications of the Astronomical Society of Japan. 

    [embedded content]
    Watch to learn how the XRISM (X-ray Imaging and Spectroscopy Mission) satellite took an unprecidented look at our galaxy’s sulfur. XRISM is led by JAXA (Japan Aerospace Exploration Agency) in collaboration with NASA, along with contributions from ESA (European Space Agency).NASA’s Goddard Space Flight Center

    Using ultraviolet light, researchers have found gaseous sulfur in the space between stars. In denser parts of the interstellar medium, such as the molecular clouds where stars and planets are born, this form of sulfur quickly disappears. 
    Scientists assume the sulfur condenses into a solid, either by combining with ice or mixing with other elements. 
    When a doctor performs an X-ray here on Earth, they place the patient between an X-ray source and a detector. Bone and tissue absorb different amounts of the light as it travels through the patient’s body, creating contrast in the detector.
    To study sulfur, Corrales and her team did something similar. 
    They picked a portion of the interstellar medium with the right density — not so thin that all the X-rays would pass through unchanged, but also not so dense that they would all be absorbed.
    Then the team selected a bright X-ray source behind that section of the medium, a binary star system called GX 340+0 located over 35,000 light-years away in the southern constellation Scorpius. 

    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. 

     

    ### 

    MIL OSI USA News –

  • MIL-OSI USA: DLNR News Release – Enforcement Measures Increasing as Sacred Falls Remains Closed, July 22, 2025

    Source: US State of Hawaii

    DLNR News Release – Enforcement Measures Increasing as Sacred Falls Remains Closed, July 22, 2025

    Posted on Jul 23, 2025 in Latest Department News, Newsroom

     

    STATE OF HAWAIʻI

    KA MOKU ʻĀINA O HAWAIʻI

     

         JOSH GREEN, M.D.
    GOVERNOR

    KE KIAʻĀINA

     

    DEPARTMENT OF LAND AND NATURAL RESOURCES

    KA ‘OIHANA KUMUWAIWAI ‘ĀINA

     

    DAWN N.S. CHANG
    CHAIRPERSON

     

     

    ENFORCEMENT MEASURES INCREASING AS SACRED FALLS REMAINS CLOSED

     

     

    FOR IMMEDIATE RELEASE

    July 22, 2025

      

    HONOLULU –Despite clearly posted park closure and hazardous conditions signs, people are continuing to ignore the risks and enter Sacred Falls State Park. The DLNR Division of Conservation and Resources Enforcement (DOCARE) recently received information and video of numerous young adults exiting the closed area by climbing over a locked gate.

     

    A tragic rockslide claimed eight lives on Mother’s Day 1999 and the site has been off limits ever since. Even with numerous past press releases, clearly posted signs warning of dangerous conditions and numerous past incidents involving injuries, some people continue to gamble with their safety and their lives by entering Sacred Falls. 

     

    “How many times do we have to tell people to stop going into Sacred Falls?” asked DOCARE Chief Jason Redulla.  “I have directed the Oahu Branch to take strong enforcement action on any closed area violations at Sacred Falls, including arresting violators,”  he said. DOCARE is increasing patrols of the area.

     

    “People who enter Sacred Falls are not only endangering themselves, they also endanger the safety of first responders if they get into trouble”, Redulla added. “This risk to our responders, including DOCARE officers is intolerable and violators who are found entering or exiting the closed area will be dealt with accordingly.” 

     

    Violations of the State Park administrative rule pertaining to entering a closed area is a petty misdemeanor. Potential penalties include a $1,000 fine or up to 30 days in jail.

     

     

    # # # 

     

    RESOURCES 

    (All images/video courtesy: DLNR) 

     

    Video – Sacred Falls – Please Turn Back (May 17, 2020): https://vimeo.com/419650794

     

    Video – Sacred Falls Enforcement (May 9, 2020): https://www.dropbox.com/scl/fi/li2qo1ld0ahqsl3txmunv/Sacred-Falls-Enforcement-May-9-2020.mov?rlkey=2i27lvmxbbm6h3hc2cenlw7t7&st=fiqrykir&dl=0

     

    Photographs – Sacred Falls (May 9, 2020): https://www.dropbox.com/scl/fo/srxuqy3jbkiaxbo30lvhs/ALAdBu3h5abme5DIybkf5LE?rlkey=mafu00gary7g727d8bsn8rz6r&st=maarbiiw&dl=0

     

     

     

    Media Contact: 

    Patti Jette                                                                                         

    Communications Specialist                                                          

    Hawai‘i Dept. of Land and Natural Resources                           

    808-587-0396                                                                                  

    [email protected]                                                           

    MIL OSI USA News –

  • MIL-OSI New Zealand: Take that! Tourism campaign a hit with Aussies

    Source: New Zealand Government

    The ‘Everyone Must Go’ campaign encouraging Australians to pick New Zealand for their next holiday has hit its results out of the park, bringing in thousands of visitors in a boost for regional economies and tourism operators. 

    Tourism and Hospitality Minister Louise Upston says ‘Everyone Must Go’ was initially targeted at 6,750 additional arrivals over the autumn but ended up significantly exceeding expectations. 

    “‘Everyone Must Go’ has been a winner,’” Louise Upston says.

    “Tourism NZ stats released to me show it delivering an additional 7,981 visitors to smash its initial forecasts. It also attracted significant attention on both sides of the Tasman, and got Kiwis and Aussies talking about New Zealand as a destination.

    “Tourism is a key part of our plan to grow the economy, create jobs, lift wages and help Kiwis get ahead.  ‘Everyone Must Go’ is a great example of the sector and Government working together to achieve these goals. 

    “We knew Aussies would recognise it as a great opportunity. Just like they grabbed Phar Lap and pavlova, it’s proved the same story with ‘Everyone Must Go.’

    “A key part of this campaign’s success were the deals the tourism industry came to the party with.  This team approach showed we can deliver great results for the sector when Government and industry are joined up and working towards the same goals.”

    More than 800 deals from 450 operators across accommodation, transport and experiences were available during the campaign. 

    The initial $500,000 campaign spend delivered a solid return on investment, leading to an additional $300,000 to give the campaign a further boost. 

    “This campaign was the first Tourism Boost initiative, and these positive results show that with the right investment in the right markets we will drive economic growth.

    “Every one of those Australian visitors who ate at cafes and restaurants, visited tourist attractions and shopped in our towns and cities has helped the New Zealand tourism sector grow, and boosted the Kiwi economy in the process,” Louise Upston says. 

    MIL OSI New Zealand News –

  • MIL-OSI USA: Cotton, Colleagues Introduce Legislation to Combat Chinese Drone Market Dominance

    US Senate News:

    Source: United States Senator for Arkansas Tom Cotton

    FOR IMMEDIATE RELEASE
    Contact: Caroline Tabler or Patrick McCann (202) 224-2353
    July 23, 2025

    Cotton, Colleagues Introduce Legislation to Combat Chinese Drone Market Dominance

    Washington, DC — Senators Tom Cotton (R-Arkansas), Chris Coons (D-Delaware), and John Cornyn (R-Texas) today introduced the Leading Exports of Aerial Drones Act, or LEAD Act, legislation that would make it easier for American companies to sell unmanned aerial systems (UAS) to American allies and partners.

    “The current restrictions on UAS sales to allies and partners are outdated and put American companies at a disadvantage, all while ceding the market to Communist China. This bill will spur American business and innovation while decreasing global dependence on Chinese military technology,” said Senator Cotton.

    “Drones aren’t just the future of warfare—as we’re seeing in Ukraine, they’re its present, too. Against the backdrop of increasing alignment between Russia, China, Iran, and North Korea, we must ensure that the United States and our allies and partner have the weapons systems and munitions we need to defend ourselves. This bill is a first step towards the objective of greater military production, integration, and deterrence for the United States and our allies in an increasingly dangerous world,” said Senator Coons.

    “This commonsense legislation would cut red tape to make drone technology more accessible and foster greater strategic defense cooperation with our allies, and I’m glad to support it,” said Senator Cornyn.

    Bill text is here.

    The LEAD Act would:

    • Direct changes to the Arms Control Act, the United States Munitions List, and the Missile Technology Control Regime to require UAS be treated as manned aircraft and separately from missile technology for the purposes of defense transfers.

    MIL OSI USA News –