MIL-OSI: Lakeland Financial Reports Record Second Quarter Performance; Net Income Grows by 20% to $27.0 Million, as Net Interest Income Expands by 14%

Source: GlobeNewswire (MIL-OSI)

WARSAW, Ind., July 25, 2025 (GLOBE NEWSWIRE) — Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported record second quarter net income of $27.0 million for the three months ended June 30, 2025, which represents an increase of $4.4 million, or 20%, compared with net income of $22.5 million for the three months ended June 30, 2024. Diluted earnings per share were $1.04 for the second quarter of 2025 and increased $0.17, or 20%, compared to $0.87 for the second quarter of 2024. On a linked quarter basis, net income increased $6.9 million, or 34%, from $20.1 million. Diluted earnings per share increased $0.26, or 33%, from $0.78 on a linked quarter basis.

Pretax pre-provision earnings, which is a non-GAAP measure, were $35.9 million for the three months ended June 30, 2025, an increase of $528,000, or 1%, compared to $35.4 million for the three months ended June 30, 2024. Adjusted core operational profitability, a non-GAAP measure that excludes the impact of certain non-routine operating events that occurred during 2024, improved by $7.8 million, or 41%, from $19.2 million to $27.0 million for the three months ended June 30, 2024 and 2025, respectively.

The company further reported net income of $47.1 million for the six months ended June 30, 2025, versus $46.0 million for the comparable period of 2024, an increase of $1.1 million, or 2%. Diluted earnings per share also increased 2% to $1.82 for the six months ended June 30, 2025, versus $1.78 for the comparable period of 2024. Pretax pre-provision earnings were $67.0 million for the six months ended June 30, 2025, an increase of $2.2 million, or 3%, compared to $64.7 million for the six months ended June 30, 2024. Adjusted core operational profitability improved by $5.2 million, or 12%, from $41.8 million to $47.1 million for the six months ended June 30, 2024 and 2025, respectively.

“We are pleased to report strong earnings momentum for the second quarter of 2025, which has benefited from double digit growth of net interest income and contributed to good overall performance in the first half of 2025,” observed David M. Findlay, Chairman and CEO. “Importantly, our Lake City Bank Team continues to generate healthy loan and deposit growth. It’s been a rewarding first six months of 2025 with this strong financial performance, healthy balance sheet growth and continued success on the business development front for all of our revenue producing teams.”

Quarterly Financial Performance

Second Quarter 2025 versus Second Quarter 2024 highlights:

Return on average equity of 15.52%, compared to 14.19%
Return on average assets of 1.57%, compared to 1.37%
Tangible book value per share grew by $2.14, or 8%, to $27.48
Average loans grew by $194.8 million, or 4%, to $5.23 billion
Core deposits grew by $423.9 million, or 8%, to $6.03 billion
Net interest margin improved 25 basis points to 3.42% versus 3.17%
Net interest income increased by $6.6 million, or 14%
Provision expense of $3.0 million, compared to $8.5 million
Watch list loans as a percentage of total loans improved to 3.67% from 5.31%
Nonaccrual loans declined 46% to $30.6 million compared to $57.1 million
Common equity tier 1 capital ratio improved to 14.73%, compared to 14.28%
Total risk-based capital ratio improved to 15.86%, compared to 15.53%
Tangible capital ratio improved to 10.15%, compared to 9.91%
Average equity increased by $58.0 million, or 9%

Second Quarter 2025 versus First Quarter 2025 highlights:

Return on average equity of 15.52%, compared to 11.70%
Return on average assets of 1.57%, compared to 1.20%
Average loans grew by $43.7 million, or 1%, to $5.23 billion
Core deposits grew by $191.6 million, or 3%, to $6.03 billion
Net interest margin improved 2 basis points to 3.42% versus 3.40%
Net interest income increased by $2.0 million, or 4%
Pretax, pre-provision earnings increased $4.9 million, or 16%
Provision expense of $3.0 million, compared to $6.8 million
Nonaccrual loans declined 47% to $30.6 million compared to $57.4 million
Watch list loans as a percentage of total loans improved to 3.67% from 4.13%
Common equity tier 1 capital ratio of 14.73%, compared to 14.51%
Total risk-based capital ratio of 15.86%, compared to 15.77%
Tangible capital ratio of 10.15%, compared to 10.09%

Capital Strength

The company’s total capital as a percentage of risk-weighted assets improved to 15.86% at June 30, 2025, compared to 15.53% at June 30, 2024 and 15.77% at March 31, 2025. These capital levels significantly exceeded the 10.00% regulatory threshold required to be characterized as “well capitalized” and reflect the company’s robust capital base.

The company’s tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, improved to 10.15% at June 30, 2025, compared to 9.91% at June 30, 2024 and 10.09% at March 31, 2025. Unrealized losses from available-for-sale investment securities were $185.3 million at June 30, 2025, compared to $194.9 million at June 30, 2024 and $188.3 million at March 31, 2025. Excluding the impact of accumulated other comprehensive income (loss) on tangible common equity and tangible assets, the company’s ratio of adjusted tangible common equity to adjusted tangible assets, a non-GAAP financial measure, was 12.17% at June 30, 2025, compared to 12.18% at June 30, 2024, and 12.19% at March 31, 2025.

As announced on July 8, 2025, the board of directors approved a cash dividend for the second quarter of $0.50 per share, payable on August 5, 2025, to shareholders of record as of July 25, 2025. The second quarter dividend per share represents a 4% increase from the $0.48 dividend per share paid for the second quarter of 2024.

The company utilized its share repurchase program during the second quarter of 2025 and repurchased 30,300 shares of its common stock for $1.7 million at a weighted average price per share of $55.94. The company has $28.3 million of remaining availability under the board-approved share repurchase program.

“Our capital position is strong and provides capacity for continued organic growth of our balance sheet as well as continued growth of our common stock dividend to shareholders,” stated Kristin L. Pruitt, President. “While we did utilize our share repurchase program during the second quarter, our priority for capital is to continue capital retention to support loan growth in our Indiana markets and provide for continued balance sheet growth opportunities.”

Loan Portfolio

Average total loans of $5.23 billion in the second quarter of 2025 increased $194.8 million, or 4%, from $5.03 billion for the second quarter of 2024 and increased $43.7 million, or 1%, from $5.19 billion for the first quarter of 2025. Average total loans for the six months ended June 30, 2025 were $5.21 billion, an increase of $205.0 million, or 4%, from $5.00 billion for the six months ended June 30, 2024.

Total loans, excluding deferred fees and costs, increased by $173.8 million, or 3%, from $5.06 billion as of June 30, 2024, to $5.23 billion as of June 30, 2025. The increase in loans occurred across much of the portfolio, with our commercial real estate and multi-family residential loan portfolio growing by $177.0 million, or 7%, our consumer 1-4 family mortgage loan portfolio growing by $46.2 million, or 10%, and our other consumer loan portfolio growing by $6.0 million, or 6%. These increases were offset by contractions to our commercial and industrial loan portfolio of $32.5 million, or 2%, and our agri-business and agricultural loan portfolio of $21.6 million, or 6%. On a linked quarter basis, total loans, excluding deferred fees and costs, increased by $3.4 million, or less than 1%, from $5.23 billion at March 31, 2025. The linked quarter increase was primarily a result of growth in total commercial real estate and multi-family residential loans of $59.6 million, or 2%, and growth in total consumer loans of $17.5 million, or 3%. This growth was offset by contractions in total agri-business and agricultural loans of $44.3 million, or 12%, and total commercial and industrial loans of $29.8 million, or 2%.

Commercial loan originations for the second quarter included approximately $390.0 million in loan originations, offset by approximately $404.0 million in commercial loan pay downs. Line of credit usage increased to 44% as of June 30, 2025, compared to 41% at June 30, 2024 and 43% as of March 31, 2025. Total available lines of credit contracted by $48.0 million, or 1%, as compared to a year ago, and line usage increased by $100.0 million, or 5%, over that period. The company has limited exposure to commercial office space borrowers, all of which are in the bank’s Indiana markets. Loans totaling $106.9 million for this sector represented 2% of total loans at June 30, 2025, an increase of $6.4 million, or 6%, from March 31, 2025. Commercial real estate loans secured by multi-family residential properties and secured by non-farm non-residential properties were approximately 221% of total risk-based capital at June 30, 2025.

“We are pleased that commercial line utilization continues to improve with a utilization rate of 44% at the end of the second quarter 2025,” added Findlay. “This marks the highest line utilization rate since 2020, and we are encouraged that borrower demand for working lines of capital has increased. During the second quarter, construction loans migrated as planned to the CRE multi-family segment. In addition, loan payoffs received during the second quarter impacted the owner occupied CRE and Agriculture segments.”

Diversified Deposit Base

The bank’s diversified deposit base has grown on a year-over-year basis and on a linked quarter basis.

(in thousands)	June 30, 2025				March 31, 2025				June 30, 2024
Retail	$	1,755,750	28.4	%	$	1,787,992	30.0	%	$	1,724,777	29.9	%
Commercial		2,256,620	36.6			2,336,910	39.2			2,150,127	37.3
Public funds		2,014,047	32.6			1,709,883	28.7			1,727,593	30.0
Core deposits		6,026,417	97.6			5,834,785	97.9			5,602,497	97.2
Brokered deposits		150,416	2.4			125,409	2.1			161,040	2.8
Total	$	6,176,833	100.0	%	$	5,960,194	100.0	%	$	5,763,537	100.0	%

Total deposits increased $413.3 million, or 7%, from $5.76 billion as of June 30, 2024, to $6.18 billion as of June 30, 2025. The increase in total deposits was driven by an increase in core deposits (which excludes brokered deposits) of $423.9 million, or 8%. Total core deposits at June 30, 2025 were $6.03 billion and represented 98% of total deposits, as compared to $5.60 billion and 97% of total deposits at June 30, 2024.

The increase in core deposits since June 30, 2024, reflects growth in all three core deposit segments. Public funds deposits grew annually by $286.5 million, or 17%, to $2.01 billion. Public funds deposits as a percentage of total deposits were 33%, up from 30% a year ago. Growth in public funds was positively impacted by the addition of new public funds customers in the Lake City Bank footprint, including their operating accounts. Commercial deposits grew annually by $106.5 million, or 5%, to $2.26 billion and remained at 37% as a percentage of total deposits. Retail deposits grew by $31.0 million, or 2%, to $1.76 billion. Retail deposits as a percentage of total deposits was 28% of total deposits, down from 30% a year ago.

On a linked quarter basis, total deposits increased $216.6 million, or 4%, from $5.96 billion at March 31, 2025, to $6.18 billion at June 30, 2025. Core deposits increased by $191.6 million, or 3%, while brokered deposits increased by $25.0 million, or 20%. The linked quarter growth in core deposits, was positively impacted by the addition of new public funds customers. Offsetting this increase was a decrease in commercial deposits of $80.3 million, or 3%, and a decrease in retail deposits of $32.2 million, or 2%.

Average total deposits were $6.10 billion for the second quarter of 2025, an increase of $276.5 million, or 5%, from $5.82 billion for the second quarter of 2024. Average interest-bearing deposits drove the increase in average total deposits and increased by $263.4 million, or 6%. Contributing to the overall growth of interest-bearing deposits was an increase to average interest-bearing checking accounts of $492.4 million, or 15%. Offsetting this increase was a reduction in average time deposits of $225.9 million, or 22%, and a decrease to average savings deposits of $3.2 million, or 1%. Average noninterest-bearing demand deposits increased by $13.2 million, or 1% to $1.2 billion.

On a linked quarter basis, average total deposits increased by $221.8 million, or 4%, from $5.87 billion for the first quarter of 2025 to $6.10 billion for the second quarter of 2025. Average interest bearing deposits drove the increase to total average deposits, which increased by $236.1 million, or 5%. Average interest bearing checking accounts were responsible for the increase, growing by $281.5 million, or 8%. Offsetting this increase were decreases to total average time deposits of $47.4 million, or 6%, and average noninterest bearing demand deposits decreased by $14.3 million, or 1%.

Checking account trends as of June 30, 2025 compared to June 30, 2024 include growth of $352.1 million, or 23%, in aggregate public fund checking account balances, growth of $93.4 million, or 5%, in aggregate commercial checking account balances, and growth of $52.2 million, or 6%, in aggregate retail checking account balances. The number of accounts has also grown for all three segments, with growth of 9% for public funds accounts, 2% for commercial accounts and 1% for retail accounts during the prior twelve months.

“Deposit growth is strong in many measurable ways. All deposit segments have grown on a year over year basis, and the bank continues to add new public fund customers and their operating accounts,” commented Lisa M. O’Neill, Executive Vice-President and Chief Financial Officer.

Deposits not covered by FDIC deposit insurance as a percentage of total deposits were 59% as of June 30, 2025, compared to 57% at March 31, 2025, and 58% at June 30, 2024, reflecting growth in public fund deposits over those periods. Deposits not covered by FDIC deposit insurance or the Indiana Public Deposit Insurance Fund, which insures public funds deposits in Indiana, were 27% of total deposits at June 30, 2025, compared to 29% at March 31, 2025, and 29% at June 30, 2024. At June 30, 2025, 98% of deposit accounts had deposit balances less than $250,000.

Net Interest Margin

Net interest margin was 3.42% for the second quarter of 2025, representing a 25 basis point increase from 3.17% for the second quarter of 2024. This improvement was driven by a reduction in the company’s funding costs, with interest expense as a percentage of average earning assets falling by 49 basis points from 2.90% for the second quarter of 2024 to 2.41% for the second quarter of 2025. Offsetting the decrease in funding costs was a decrease to earning asset yields of 24 basis points from 6.07% for the second quarter of 2024 to 5.83% for the second quarter of 2025. During the second quarter of 2025, the company recorded a prepayment fee of $541,000 from the early payment of a fixed rate commercial loan, which was recorded as part of interest income. The prepayment fee benefited net interest margin by 3 basis points for the second quarter. Excluding the impact of the prepayment penalty, net interest margin improved by 22 basis points. The easing of monetary policy by the Federal Reserve Bank, which began in September of 2024, drove the reduction in funding costs that provided for the net interest margin expansion through deposit repricing as compared to the prior year quarter.

Net interest margin expanded by 2 basis points to 3.42% for the second quarter of 2025, compared to 3.40% for the linked first quarter of 2025. Average earning asset yields increased by 6 basis points from 5.77% to 5.83% on a linked quarter basis and interest expense as a percentage of average earning assets increased 4 basis points from 2.37% to 2.41%. Excluding the impact of the prepayment penalty, net interest margin contracted by 1 basis point compared to the linked first quarter.

The cumulative loan beta for the current rate-easing cycle that began in September 2024 is 29% compared to the deposit beta of 50% and has resulted in net interest margin expansion which has benefited net interest income. Net interest income was $54.9 million for the second quarter of 2025, representing an increase of $6.6 million, or 14%, as compared to $48.3 million for the second quarter of 2024. On a linked quarter basis, net interest income increased $2.0 million, or 4%, from $52.9 million for the first quarter of 2025. Net interest income increased by $12.0 million, or 13%, from $95.7 million for the six months ended June 30, 2024, to $107.8 million for the six months ended June 30, 2025.

O’Neill noted, “We are pleased to report healthy net interest margin expansion of 25 basis points as compared to a year ago. In this higher-for-longer interest rate environment, we continue to benefit from fixed rate loan repricing and new loan origination activity. In addition, we are pleased that our core deposits represent 98% of our total funding needs compared to 97% a year ago. Core deposit growth has outpaced our loan growth in 2025, which has strengthened our liquidity position. We have begun to reinvest some maturing investment securities into higher yielding investment securities with short duration, which is also benefiting net interest margin.”

Asset Quality

The company recorded a provision for credit losses of $3.0 million in the second quarter of 2025, a decrease of $5.5 million as compared to $8.5 million in the second quarter of 2024. On a linked quarter basis, the provision expense decreased by $3.8 million, from $6.8 million for the first quarter of 2025. Provision expense for the second quarter and for the six months ended June 30, 2025, was primarily driven by an increase in the specific allocation for a previously disclosed $43.3 million nonperforming credit for an industrial company in Northern Indiana as well as loan growth. During the second quarter of 2025, the non-performing borrower reached an agreement to sell and liquidate the business to two unrelated entities. The transactions are expected to close in the third quarter of 2025. As a result of the pending sale and liquidation, the company recognized a charge off of $28.6 million during the second quarter, which was fully allocated at the time of the charge off. The company expects to collect the remainder of the outstanding principal balance from sale and liquidation proceeds and proceeds from the personal guarantee from the borrower.

The ratio of allowance for credit losses to total loans was 1.27% at June 30, 2025, down from 1.60% at June 30, 2024, and 1.77% at March 31, 2025. The decrease in the allowance coverage was due to a significant reduction of 46%, or $26.5 million, in nonaccrual loans, which were $30.6 million at June 30, 2025 versus $57.1 million at June 30, 2024. Net charge offs in the second quarter of 2025 were $28.9 million, compared to $949,000 in the second quarter of 2024 and $327,000 during the linked first quarter of 2025. Annualized net charge offs to average loans were 2.22% for the second quarter of 2025, compared to 0.08% for the second quarter of 2024 and 0.03% for the linked first quarter of 2025. Annualized net charge offs to average loans were 1.13% for the six months ended June 30, 2025 compared to 0.05% for the six months ended June 30, 2024.

Nonperforming assets decreased $26.5 million, or 46%, to $31.1 million as of June 30, 2025, versus $57.6 million as of June 30, 2024. On a linked quarter basis, nonperforming assets decreased $26.8 million, or 46%, compared to $57.9 million as of March 31, 2025. The ratio of nonperforming assets to total assets at June 30, 2025 decreased to 0.45% from 0.88% at June 30, 2024, and decreased from 0.84% at March 31, 2025.

Total individually analyzed and watch list loans decreased by $76.6 million, or 29%, to $191.6 million as of June 30, 2025, versus $268.3 million as of June 30, 2024. On a linked quarter basis, total individually analyzed and watch list loans decreased by $23.9 million, or 11%, from $215.6 million at March 31, 2025. Watch list loans as a percentage of total loans were 3.67% at June 30, 2025, a decrease of 164 basis points compared to 5.31% at June 30, 2024, and 46 basis points from 4.13% at March 31, 2025.

“We are pleased to have reached a resolution on the nonperforming loan that we have been working through for the past several quarters,” stated Findlay. “Importantly, our semi-annual loan portfolio reviews with all loan officers of the bank affirmed that asset quality is stable and that economic conditions in our footprint are contributing to new business development opportunities. We continue to monitor the impact of tariffs on our borrowers. It is too early to quantify the impact of U.S. trade policy on our borrowers’ businesses, although there appears to be less concern on the impact of tariffs that we heard from borrowing clients previously.”

Investment Portfolio Overview

Total investment securities were $1.13 billion at June 30, 2025, reflecting an increase of $5.5 million, or less than 1%, as compared to $1.12 billion at June 30, 2024. Investment securities represented 16% of total assets on June 30, 2025, as compared to 17% and June 30, 2024 and March 31, 2025. The company anticipates receiving principal and interest cash flows of approximately $54.5 million during the remainder of 2025 from the investment securities portfolio and plans to use that liquidity to fund loan growth as well as to fund reinvestments to the investment securities portfolio. Tax equivalent adjusted effective duration for the investment portfolio was 5.9 years at June 30, 2025, compared to 6.5 years at June 30, 2024 and unchanged from 5.9 years at March 31, 2025.

Noninterest Income

The company’s noninterest income decreased $9.0 million, or 44%, to $11.5 million for the second quarter of 2025, compared to $20.4 million for the second quarter of 2024. Noninterest income was elevated during the second quarter of 2024 as compared to the second quarter of 2025 as a result of the net gain on Visa shares of $9.0 million that was recorded in the second quarter of 2024. Adjusted core noninterest income, a non-GAAP financial measure that excludes the effect of the net gain on Visa shares and an insurance recovery, increased $58,000, or less than 1%, from $11.4 million during the second quarter of 2024. Bank owned life insurance income increased $150,000, or 17%, primarily as a result of increased general account bank owned life insurance income from the purchase of insurance policies during the second quarter of 2025. Mortgage banking income increased $101,000 due to growth in the company’s mortgage pipeline, which favorably impacted secondary market loan sale gains and mortgage rate lock income. Wealth advisory fees increased $70,000, or 3%, driven by continued growth in customers and assets under management. Investment brokerage fees increased $72,000, or 15%, due to increased volume and product mix. Offsetting these increases was a decrease to other income of $296,000, or 43%, primarily driven by reduced limited partnership investment income.

Noninterest income for the second quarter of 2025 increased by $558,000, or 5%, on a linked quarter basis from $10.9 million during the first quarter of 2025. Bank owned life insurance income increased $718,000, or 223%, primarily as a result of improved market performance of the bank’s variable owned life insurance policies and increased general account bank owned life insurance income from the purchase of insurance policies during the second quarter of 2025. Loan and service fee income increased $122,000, or 4%, from increased interchange fee income. Mortgage banking income increased $175,000, as a result of income derived from secondary mortgage sales and pipeline growth. Investment brokerage fees income increased $98,000, or 22%. Offsetting these increases was a decrease to other income of $460,000, or 54%, primarily a result of reduced limited partnership investment income. Wealth advisory fees, which benefited in the linked first quarter of 2025 from significant estate settlement fee income decreased $200,000, or 7%.

“The linked quarter improvement of noninterest income of 5% is encouraging as we continue to focus on growing our fee-based businesses,” noted Findlay. “We are particularly pleased with the continued growth of our Wealth Advisory Management area, which has recently added revenue generating employees in our footprint with a focus in Indianapolis. Assets under management in this area have reached nearly $3.0 billion at quarter end.”

Noninterest income decreased by $10.6 million, or 32%, to $22.4 million for the six months ended June 30, 2025, compared to $33.1 million for the prior year six-month period. Noninterest income was elevated during the first six months of 2024 as compared to the comparable period of 2025 primarily because of the net gain on Visa shares of $9.0 million and a $1.0 million insurance recovery. Adjusted core noninterest income, a non-GAAP financial measure that excludes the impact of these non-routine events, declined $626,000, or 3%, from $23.0 million for the six months ended June 30, 2024. Other income decreased $1.6 million, or 56%, as other income during the first six months of 2024 benefited from the $1.0 million insurance recovery. Reduced limited partnership investment income further contributed to the decline between the periods. Bank owned life insurance income decreased $564,000, or 29%, primarily as a result of reduced market performance from the bank’s variable bank owned life insurance policies, which correlate to returns in the equities markets. Offsetting these decreases were increases to wealth advisory fees of $482,000, or 10%, and service charges on deposit accounts of $104,000, or 2%. The increase in wealth advisory fees was primarily driven by continued growth in customers and assets under management.

Noninterest Expense

Noninterest expense decreased $2.9 million, or 9%, to $30.4 million for the second quarter of 2025, compared to $33.3 million during the second quarter of 2024. Noninterest expense was elevated during the second quarter of 2024 as compared to 2025 due to a $4.5 million accrual that was recorded from the resolution of a legal matter. Adjusted core noninterest expense, which excludes the impact of the legal accrual, increased $1.6 million, or 6%, from $28.8 million for the second quarter of 2024. Salaries and benefits expense increased by $938,000, or 6%. The primary drivers for the increase to salaries and benefits expense were increased salaries expense of $756,000 and increased health insurance expense of $127,000. Additionally, data processing fees and supplies expense increased $340,000, or 9%, from continued investment in customer-facing and operational technology solutions. Offsetting these increases were decreases to other expense of $3.8 million, or 62%, professional fees of $417,000, or 20%, and corporate and business development expense of $105,000, or 8%. The decrease to other expense was driven by the legal accrual recorded during the second quarter of 2024. The decrease to professional fees was primarily driven by reduced technology implementation consulting fees and swap collateral fees. Corporate and business development expense decreased primarily as a result of lower advertising expense.

On a linked quarter basis, noninterest expense decreased by $2.3 million, or 7%, from $32.8 million during the first quarter of 2025. The primary drivers for the decrease to noninterest expense was a decrease to salaries and employee benefits of $806,000, or 5%, due to a reduction in HSA contributions expense of $441,000, resulting from the timing of the annual employer contribution to employee accounts, and a reduction in performance-based compensation accruals. Professional fees decreased $674,000, or 28%, and were primarily driven by reduced technology implementation consulting fees and swap collateral interest expense. Other expense decreased $353,000, or 13%, as other expense was elevated in the linked first quarter of 2025 from the timing of semiannual director share awards. Corporate and business development expense decreased by $246,000, or 18%, due to reduced advertising expense, primarily driven by the timing of when advertisement television spots were purchased and utilized. Net occupancy expense decreased $233,000, or 12%, due to reductions in seasonal expenses. Data processing fees and supplies expense decreased $113,000, or 3%.

Noninterest expense decreased by $843,000, or 1%, for the six months ended June 30, 2025 to $63.2 million compared to $64.0 million for the six months ended June 30, 2024. Adjusted core noninterest expense, which excludes the impact of the $4.5 million legal accrual, increased $3.7 million, or 6%, from $59.5 million for the six months ended June 30, 2024. Salaries and benefits expense increased by $2.0 million, or 6%. Data processing fees and supplies and expense increased $766,000, or 10%. Net occupancy expense increased $289,000, or 8%, as a result of increased occupancy expense from the continued expansion of the company’s branch network and improvements to existing facilities. Offsetting these increases were decreases to other expense of $3.4 million, or 41%, and professional fees of $500,000, or 11%.

The company’s efficiency ratio was 45.9% for the second quarter of 2025, compared to 48.5% for the second quarter of 2024 and 51.4% for the linked first quarter of 2025. The company’s adjusted core efficiency ratio, a non-GAAP financial measure, was 48.2% for the second quarter of 2024.

The company’s efficiency ratio was 48.6% for the six months ended June 30, 2025, compared to 49.7% for the comparable period in 2024. The company’s adjusted core efficiency ratio was 50.1% for the six months ended June 30, 2024.

Findlay added, “We are pleased with the improvement in our efficiency ratio, which has benefited from strong core revenue growth of 10% on a year-over-year basis. Our growth in noninterest expense is focused on continued investments in human capital, technology solutions and organic expansion of our banking footprint, particularly in Indianapolis.”

Information regarding Lakeland Financial Corporation may be accessed on the home page of its subsidiary, Lake City Bank, at lakecitybank.com. The company’s common stock is traded on the Nasdaq Global Select Market under “LKFN.” Lake City Bank, a $7.0 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.

This document contains, and future oral and written statements of the company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “continue,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. The company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain and, accordingly, the reader is cautioned not to place undue reliance on any forward-looking statements made by the company. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the company undertakes no obligation to update any statement in light of new information or future events. Numerous factors could cause the company’s actual results to differ from those reflected in forward-looking statements, including the effects of economic, business and market conditions and changes, particularly in our Indiana market area, including prevailing interest rates and the rate of inflation; governmental trade, monetary and fiscal policies; the risks of changes in interest rates on the levels, composition and costs of deposits, loan demand and the values and liquidity of loan collateral, securities and other interest sensitive assets and liabilities; and changes in borrowers’ credit risks and payment behaviors, as well as those identified in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

LAKELAND FINANCIAL CORPORATION SECOND QUARTER 2025 FINANCIAL HIGHLIGHTS

	Three Months Ended									Six Months Ended
(Unaudited – Dollars in thousands, except per share data)	June 30,			March 31,			June 30,			June 30,			June 30,
END OF PERIOD BALANCES		2025			2025			2024			2025			2024
Assets	$	6,964,301		$	6,851,178		$	6,568,807		$	6,964,301		$	6,568,807
Investments		1,129,346			1,132,854			1,123,803			1,129,346			1,123,803
Loans		5,226,827			5,223,221			5,052,341			5,226,827			5,052,341
Allowance for Credit Losses		66,552			92,433			80,711			66,552			80,711
Deposits		6,176,833			5,960,194			5,763,537			6,176,833			5,763,537
Brokered Deposits		150,416			125,409			161,040			150,416			161,040
Core Deposits (1)		6,026,417			5,834,785			5,602,497			6,026,417			5,602,497
Total Equity		709,987			694,509			654,590			709,987			654,590
Goodwill Net of Deferred Tax Assets		3,803			3,803			3,803			3,803			3,803
Tangible Common Equity (2)		706,184			690,706			650,787			706,184			650,787
Adjusted Tangible Common Equity (2)		866,758			854,585			820,534			866,758			820,534
AVERAGE BALANCES
Total Assets	$	6,904,681		$	6,762,970		$	6,642,954		$	6,834,217		$	6,598,711
Earning Assets		6,570,607			6,430,804			6,295,281			6,501,092			6,256,105
Investments		1,125,597			1,136,404			1,118,776			1,130,970			1,138,639
Loans		5,229,646			5,185,918			5,034,851			5,207,903			5,002,935
Total Deposits		6,096,504			5,874,725			5,819,962			5,986,227			5,725,196
Interest Bearing Deposits		4,852,446			4,616,381			4,589,059			4,735,066			4,472,693
Interest Bearing Liabilities		4,886,943			4,716,465			4,666,136			4,802,175			4,599,136
Total Equity		696,976			696,053			638,999			696,517			642,003
INCOME STATEMENT DATA
Net Interest Income	$	54,876		$	52,875		$	48,296		$	107,751		$	95,712
Net Interest Income-Fully Tax Equivalent		55,986			53,983			49,493			109,970			98,176
Provision for Credit Losses		3,000			6,800			8,480			9,800			10,000
Noninterest Income		11,486			10,928			20,439			22,414			33,051
Noninterest Expense		30,432			32,763			33,333			63,195			64,038
Net Income		26,966			20,085			22,549			47,051			45,950
Pretax Pre-Provision Earnings (2)		35,930			31,040			35,402			66,970			64,725
PER SHARE DATA
Basic Net Income Per Common Share	$	1.05		$	0.78		$	0.88		$	1.83		$	1.79
Diluted Net Income Per Common Share		1.04			0.78			0.87			1.82			1.78
Cash Dividends Declared Per Common Share		0.50			0.50			0.48			1.00			0.96
Dividend Payout		48.08	%		64.10	%		55.17	%		54.95	%		53.93	%
Book Value Per Common Share (equity per share issued)	$	27.63		$	26.99		$	25.49		$	27.63		$	25.49
Tangible Book Value Per Common Share (2)		27.48			26.85			25.34			27.48			25.34
Market Value – High	$	62.39		$	71.77		$	66.62		$	71.77		$	73.22
Market Value – Low		50.00			58.24			57.59			50.00			57.59

	Three Months Ended									Six Months Ended
(Unaudited – Dollars in thousands, except per share data)	June 30,			March 31,			June 30,			June 30,			June 30,
KEY RATIOS		2025			2025			2024			2025			2024
Basic Weighted Average Common Shares Outstanding		25,707,233			25,714,818			25,678,231			25,711,004			25,667,647
Diluted Weighted Average Common Shares Outstanding		25,776,205			25,802,865			25,742,871			25,782,817			25,746,773
Return on Average Assets		1.57	%		1.20	%		1.37	%		1.39	%		1.40	%
Return on Average Total Equity		15.52			11.70			14.19			13.62			14.39
Average Equity to Average Assets		10.09			10.29			9.62			10.19			9.73
Net Interest Margin		3.42			3.40			3.17			3.41			3.16
Efficiency (Noninterest Expense/Net Interest Income plus Noninterest Income)		45.86			51.35			48.49			48.55			49.73
Loans to Deposits		84.62			87.64			87.66			84.62			87.66
Investment Securities to Total Assets		16.22			16.54			17.11			16.22			17.11
Tier 1 Leverage (3)		12.21			12.30			11.98			12.21			11.98
Tier 1 Risk-Based Capital (3)		14.73			14.51			14.28			14.73			14.28
Common Equity Tier 1 (CET1) (3)		14.73			14.51			14.28			14.73			14.28
Total Capital (3)		15.86			15.77			15.53			15.86			15.53
Tangible Capital (2)		10.15			10.09			9.91			10.15			9.91
Adjusted Tangible Capital (2)		12.17			12.19			12.18			12.17			12.18
ASSET QUALITY
Loans Past Due 30 – 89 Days	$	1,648		$	4,288		$	1,615		$	1,648		$	1,615
Loans Past Due 90 Days or More		7			7			26			7			26
Nonaccrual Loans		30,627			57,392			57,124			30,627			57,124
Nonperforming Loans		30,634			57,399			57,150			30,634			57,150
Other Real Estate Owned		284			284			384			284			384
Other Nonperforming Assets		183			193			90			183			90
Total Nonperforming Assets		31,101			57,876			57,624			31,101			57,624
Individually Analyzed Loans		52,069			81,346			78,533			52,069			78,533
Non-Individually Analyzed Watch List Loans		139,548			134,218			189,726			139,548			189,726
Total Individually Analyzed and Watch List Loans		191,617			215,564			268,259			191,617			268,259
Gross Charge Offs		29,111			508			1,076			29,619			1,580
Recoveries		230			181			127			411			319
Net Charge Offs/(Recoveries)		28,881			327			949			29,208			1,261
Net Charge Offs/(Recoveries) to Average Loans		2.22	%		0.03	%		0.08	%		1.13	%		0.05	%
Credit Loss Reserve to Loans		1.27			1.77			1.60			1.27			1.60
Credit Loss Reserve to Nonperforming Loans		217.25			161.04			141.23			217.25			141.23
Nonperforming Loans to Loans		0.59			1.10			1.13			0.59			1.13
Nonperforming Assets to Assets		0.45			0.84			0.88			0.45			0.88
Total Individually Analyzed and Watch List Loans to Total Loans		3.67	%		4.13	%		5.31	%		3.67	%		5.31	%


	Three Months Ended									Six Months Ended
(Unaudited – Dollars in thousands, except per share data)	June 30,			March 31,			June 30,			June 30,			June 30
KEY RATIOS		2025			2025			2024			2025			2024,
OTHER DATA
Full Time Equivalent Employees		675			647			653			675			653
Offices		54			54			53			54			53

(1	)	Core deposits equals deposits less brokered deposits.
(2	)	Non-GAAP financial measure – see “Reconciliation of Non-GAAP Financial Measures”.
(3	)	Capital ratios for June 30, 2025 are preliminary until the Call Report is filed.

CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
	June 30, 2025			December 31, 2024
	(Unaudited)
ASSETS
Cash and due from banks	$	97,413		$	71,733
Short-term investments		212,767			96,472
Total cash and cash equivalents		310,180			168,205
Securities available-for-sale, at fair value		996,957			991,426
Securities held-to-maturity, at amortized cost (fair value of $107,979 and $113,107, respectively)		132,389			131,568
Real estate mortgage loans held-for-sale		1,637			1,700
Loans, net of allowance for credit losses of $66,552 and $85,960		5,160,275			5,031,988
Land, premises and equipment, net		61,449			60,489
Bank owned life insurance		127,399			113,320
Federal Reserve and Federal Home Loan Bank stock		21,420			21,420
Accrued interest receivable		29,109			28,446
Goodwill		4,970			4,970
Other assets		118,516			124,842
Total assets	$	6,964,301		$	6,678,374

LIABILITIES
Noninterest bearing deposits	$	1,261,740		$	1,297,456
Interest bearing deposits		4,915,093			4,603,510
Total deposits		6,176,833			5,900,966

Borrowings
Federal Home Loan Bank advance		1,200			0
Other borrowings		5,000				0
Total borrowings		6,200			0

Accrued interest payable		9,996			15,117
Other liabilities		61,285			78,380
Total liabilities		6,254,314			5,994,463

STOCKHOLDERS’ EQUITY
Common stock: 90,000,000 shares authorized, no par value
26,016,494 shares issued and 25,525,105 outstanding as of June 30, 2025
25,978,831 shares issued and 25,509,592 outstanding as of December 31, 2024		130,664			129,664
Retained earnings		757,739			736,412
Accumulated other comprehensive income (loss)		(161,121	)		(166,500		)
Treasury stock, at cost (491,389 shares and 469,239 shares as of June 30, 2025 and December 31, 2024, respectively)		(17,384	)		(15,754		)
Total stockholders’ equity		709,898			683,822
Noncontrolling interest		89			89
Total equity		709,987			683,911
Total liabilities and equity	$	6,964,301		$	6,678,374

CONSOLIDATED STATEMENTS OF INCOME (unaudited – in thousands, except share and per share data)
	Three Months Ended June 30,				Six Months Ended June 30,
		2025		2024		2025		2024
NET INTEREST INCOME
Interest and fees on loans
Taxable	$	84,418	$	84,226	$	166,158	$	166,268
Tax exempt		291		632		583		1,532
Interest and dividends on securities
Taxable		3,457		3,104		6,846		6,143
Tax exempt		3,917		3,932		7,827		7,879
Other interest income		2,302		1,842		3,426		2,948
Total interest income		94,385		93,736		184,840		184,770

Interest on deposits		39,111		44,363		75,569		85,527
Interest on short-term borrowings		398		1,077		1,520		3,531
Total interest expense		39,509		45,440		77,089		89,058

NET INTEREST INCOME		54,876		48,296		107,751		95,712

Provision for credit losses		3,000		8,480		9,800		10,000

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		51,876		39,816		97,951		85,712

NONINTEREST INCOME
Wealth advisory fees		2,667		2,597		5,534		5,052
Investment brokerage fees		550		478		1,002		1,000
Service charges on deposit accounts		2,827		2,806		5,601		5,497
Loan and service fees		3,006		3,048		5,890		5,900
Merchant and interchange fee income		854		892		1,676		1,755
Bank owned life insurance income		1,040		890		1,362		1,926
Interest rate swap fee income		20		0		20		0
Mortgage banking income (loss)		124		23		73		75
Net securities gains (losses)		0		0		0		(46	)
Net gain on Visa shares		0		9,011		0		9,011
Other income		398		694		1,256		2,881
Total noninterest income		11,486		20,439		22,414		33,051

NONINTEREST EXPENSE
Salaries and employee benefits		17,096		16,158		34,998		32,991
Net occupancy expense		1,747		1,698		3,727		3,438
Equipment costs		1,437		1,343		2,819		2,755
Data processing fees and supplies		4,152		3,812		8,417		7,651
Corporate and business development		1,160		1,265		2,566		2,646
FDIC insurance and other regulatory fees		839		816		1,639		1,605
Professional fees		1,706		2,123		4,086		4,586
Other expense		2,295		6,118		4,943		8,366
Total noninterest expense		30,432		33,333		63,195		64,038

INCOME BEFORE INCOME TAX EXPENSE		32,930		26,922		57,170		54,725
Income tax expense		5,964		4,373		10,119		8,775
NET INCOME	$	26,966	$	22,549	$	47,051	$	45,950

BASIC WEIGHTED AVERAGE COMMON SHARES		25,707,233		25,678,231		25,711,004		25,667,647

BASIC EARNINGS PER COMMON SHARE	$	1.05	$	0.88	$	1.83	$	1.79

DILUTED WEIGHTED AVERAGE COMMON SHARES		25,776,205		25,742,871		25,782,817		25,746,773

DILUTED EARNINGS PER COMMON SHARE	$	1.04	$	0.87	$	1.82	$	1.78

LAKELAND FINANCIAL CORPORATION LOAN DETAIL (unaudited, in thousands)

	June 30, 2025					March 31, 2025					June 30, 2024
Commercial and industrial loans:
Working capital lines of credit loans	$	717,484		13.7	%	$	716,522		13.7	%	$	697,754		13.8	%
Non-working capital loans		776,278		14.9			807,048		15.5			828,523		16.4
Total commercial and industrial loans		1,493,762		28.6			1,523,570		29.2			1,526,277		30.2

Commercial real estate and multi-family residential loans:
Construction and land development loans		552,998		10.6			623,905		12.0			658,345		13.0
Owner occupied loans		780,285		14.9			804,933		15.4			830,018		16.4
Nonowner occupied loans		869,196		16.6			852,033		16.3			762,365		15.1
Multifamily loans		477,910		9.1			339,946		6.5			252,652		5.0
Total commercial real estate and multi-family residential loans		2,680,389		51.2			2,620,817		50.2			2,503,380		49.5

Agri-business and agricultural loans:
Loans secured by farmland		150,934		2.9			156,112		3.0			161,410		3.2
Loans for agricultural production		188,501		3.6			227,659		4.3			199,654		4.0
Total agri-business and agricultural loans		339,435		6.5			383,771		7.3			361,064		7.2

Other commercial loans		95,442		1.8			94,927		1.8			96,703		1.9
Total commercial loans		4,609,028		88.1			4,623,085		88.5			4,487,424		88.8

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		273,287		5.2			265,855		5.1			259,094		5.1
Open end and junior lien loans		226,114		4.4			217,981		4.2			197,861		3.9
Residential construction and land development loans		16,667		0.3			16,359		0.3			12,952		0.3
Total consumer 1-4 family mortgage loans		516,068		9.9			500,195		9.6			469,907		9.3

Other consumer loans		103,880		2.0			102,254		1.9			97,895		1.9
Total consumer loans		619,948		11.9			602,449		11.5			567,802		11.2
Subtotal		5,228,976		100.0	%		5,225,534		100.0	%		5,055,226		100.0	%
Less: Allowance for credit losses		(66,552	)				(92,433	)				(80,711	)
Net deferred loan fees		(2,149	)				(2,313	)				(2,885	)
Loans, net	$	5,160,275				$	5,130,788				$	4,971,630

LAKELAND FINANCIAL CORPORATION DEPOSITS AND BORROWINGS (unaudited, in thousands)

	June 30, 2025		March 31, 2025		June 30, 2024
Noninterest bearing demand deposits	$	1,261,740	$	1,296,907	$	1,212,989
Savings and transaction accounts:
Savings deposits		283,976		293,768		283,809
Interest bearing demand deposits		3,841,703		3,554,310		3,274,179
Time deposits:
Deposits of $100,000 or more		584,165		602,577		776,314
Other time deposits		205,249		212,632		216,246
Total deposits	$	6,176,833	$	5,960,194	$	5,763,537
FHLB advances and other borrowings		6,200		108,200		55,000
Total funding sources	$	6,183,033	$	6,068,394	$	5,818,537

LAKELAND FINANCIAL CORPORATION AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS (UNAUDITED)

	Three Months Ended June 30, 2025							Three Months Ended March 31, 2025							Three Months Ended June 30, 2024
(fully tax equivalent basis, dollars in thousands)	Average Balance			Interest Income		Yield (1)/ Rate		Average Balance			Interest Income		Yield (1)/ Rate		Average Balance			Interest Income		Yield (1)/ Rate
Earning Assets
Loans:
Taxable (2)(3)	$	5,204,006		$	84,418	6.51	%	$	5,160,031		$	81,740	6.42	%	$	4,993,270		$	84,226	6.78	%
Tax exempt (1)		25,640			359	5.62			25,887			361	5.66			41,581			783	7.57
Investments: (1)
Securities		1,125,597			8,416	3.00			1,136,404			8,338	2.98			1,118,776			8,082	2.91
Short-term investments		2,832			28	3.97			2,964			28	3.83			2,836			35	4.96
Interest bearing deposits		212,532			2,274	4.29			105,518			1,096	4.21			138,818			1,807	5.24
Total earning assets	$	6,570,607		$	95,495	5.83	%	$	6,430,804		$	91,563	5.77	%	$	6,295,281		$	94,933	6.07	%
Less: Allowance for credit losses		(93,644	)						(87,477	)						(74,166	)
Nonearning Assets
Cash and due from banks		66,713							71,004							64,518
Premises and equipment		61,280							60,523							58,702
Other nonearning assets		299,725							288,116							298,619
Total assets	$	6,904,681						$	6,762,970						$	6,642,954

Interest Bearing Liabilities
Savings deposits	$	285,944		$	43	0.06	%	$	283,888		$	42	0.06	%	$	289,107		$	48	0.07	%
Interest bearing checking accounts		3,767,903			31,499	3.35			3,486,447			28,075	3.27			3,275,502			33,323	4.09
Time deposits:
In denominations under $100,000		208,770			1,745	3.35			212,934			1,832	3.49			217,146			1,871	3.47
In denominations over $100,000		589,829			5,824	3.96			633,112			6,509	4.17			807,304			9,121	4.54
Other short-term borrowings		33,297			398	4.79			99,830			1,122	4.56			77,077			1,077	5.62
Long-term borrowings		1,200			0	0.00			254			0	0.00			0			0	0.00
Total interest bearing liabilities	$	4,886,943		$	39,509	3.24	%	$	4,716,465		$	37,580	3.23	%	$	4,666,136		$	45,440	3.92	%
Noninterest Bearing Liabilities
Demand deposits		1,244,058							1,258,344							1,230,903
Other liabilities		76,704							92,108							106,916
Stockholders’ Equity		696,976							696,053							638,999
Total liabilities and stockholders’ equity	$	6,904,681						$	6,762,970						$	6,642,954
Interest Margin Recap
Interest income/average earning assets					95,495	5.83	%					91,563	5.77	%					94,933	6.07	%
Interest expense/average earning assets					39,509	2.41						37,580	2.37						45,440	2.90
Net interest income and margin				$	55,986	3.42	%				$	53,983	3.40	%				$	49,493	3.17	%

(1	)	Tax exempt income was converted to a fully taxable equivalent basis at a 21 percent tax rate. The tax equivalent rate for tax exempt loans and tax-exempt securities acquired after January 1, 1983, included the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) adjustment applicable to nondeductible interest expenses. Taxable equivalent basis adjustments were $1.11 million, $1.11 million and $1.20 million in the three-month periods ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively.
(2	)	Loan fees, which are immaterial in relation to total taxable loan interest income for the three-month periods ended June 30, 2025, March 31, 2025, and June 30, 2024, are included as taxable loan interest income.
(3	)	Nonaccrual loans are included in the average balance of taxable loans.

Reconciliation of Non-GAAP Financial Measures

Tangible common equity, adjusted tangible common equity, tangible assets, adjusted tangible assets, tangible book value per common share, tangible common equity to tangible assets, adjusted tangible common equity to adjusted tangible assets, and pretax pre-provision earnings are non-GAAP financial measures calculated based on GAAP amounts. Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets from the calculation of equity, net of deferred tax. Tangible assets are calculated by excluding the balance of goodwill and other intangible assets from the calculation of total assets, net of deferred tax. Adjusted tangible assets and adjusted tangible common equity remove the fair market value adjustment impact of the available-for-sale investment securities portfolio in accumulated other comprehensive income (loss) (“AOCI”). Tangible book value per common share is calculated by dividing tangible common equity by the number of shares outstanding less true treasury stock. Pretax pre-provision earnings is calculated by adding net interest income to noninterest income and subtracting noninterest expense. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. However, management considers these measures of the company’s value meaningful to understanding of the company’s financial information and performance.

A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

	Three Months Ended									Six Months Ended
	Jun. 30, 2025			Mar. 31, 2025			Jun. 30, 2024			Jun. 30, 2025			Jun. 30, 2024
Total Equity	$	709,987		$	694,509		$	654,590		$	709,987		$	654,590
Less: Goodwill		(4,970	)		(4,970	)		(4,970	)		(4,970	)		(4,970	)
Plus: DTA Related to Goodwill		1,167			1,167			1,167			1,167			1,167
Tangible Common Equity		706,184			690,706			650,787			706,184			650,787
Market Value Adjustment in AOCI		160,574			163,879			169,747			160,574			169,747
Adjusted Tangible Common Equity		866,758			854,585			820,534			866,758			820,534

Assets	$	6,964,301		$	6,851,178		$	6,568,807		$	6,964,301		$	6,568,807
Less: Goodwill		(4,970	)		(4,970	)		(4,970	)		(4,970	)		(4,970	)
Plus: DTA Related to Goodwill		1,167			1,167			1,167			1,167			1,167
Tangible Assets		6,960,498			6,847,375			6,565,004			6,960,498			6,565,004
Market Value Adjustment in AOCI		160,574			163,879			169,747			160,574			169,747
Adjusted Tangible Assets		7,121,072			7,011,254			6,734,751			7,121,072			6,734,751

Ending Common Shares Issued		25,697,093			25,727,393			25,679,066			25,697,093			25,679,066

Tangible Book Value Per Common Share	$	27.48		$	26.85		$	25.34		$	27.48		$	25.34

Tangible Common Equity/Tangible Assets		10.15	%		10.09	%		9.91	%		10.15	%		9.91	%
Adjusted Tangible Common Equity/Adjusted Tangible Assets		12.17	%		12.19	%		12.18	%		12.17	%		12.18	%

Net Interest Income	$	54,876		$	52,875		$	48,296		$	107,751		$	95,712
Plus: Noninterest Income		11,486			10,928			20,439			22,414			33,051
Minus: Noninterest Expense		(30,432	)		(32,763	)		(33,333	)		(63,195	)		(64,038	)
Pretax Pre-Provision Earnings	$	35,930		$	31,040		$	35,402		$	66,970		$	64,725

Adjusted core noninterest income, adjusted core noninterest expense, adjusted earnings before income taxes, core operational profitability, core operational diluted earnings per common share and adjusted core efficiency ratio are non-GAAP financial measures calculated based on GAAP amounts. These adjusted amounts are calculated by excluding the impact of the net gain on Visa shares, legal accrual and 2023 wire fraud loss insurance recoveries for the periods presented below. Management considers these measures of financial performance to be meaningful to understanding the company’s core business performance for these periods.

A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

	Three Months Ended									Six Months Ended
	Jun. 30, 2025			Mar. 31, 2025			Jun. 30, 2024			Jun. 30, 2025			Jun. 30, 2024
Noninterest Income	$	11,486		$	10,928		$	20,439		$	22,414		$	33,051
Less: Net Gain on Visa Shares		0			0			(9,011	)		0			(9,011	)
Less: Insurance Recovery		0			0			0			0			(1,000	)
Adjusted Core Noninterest Income	$	11,486		$	10,928		$	11,428		$	22,414		$	23,040

Noninterest Expense	$	30,432		$	32,763		$	33,333		$	63,195		$	64,038
Less: Legal Accrual		0			0			(4,537	)		0			(4,537	)
Adjusted Core Noninterest Expense	$	30,432		$	32,763		$	28,796		$	63,195		$	59,501

Earnings Before Income Taxes	$	32,930		$	24,240		$	26,922		$	57,170		$	54,725
Adjusted Core Impact:
Noninterest Income		0			0			(9,011	)		0			(10,011	)
Noninterest Expense		0			0			4,537			0			4,537
Total Adjusted Core Impact		0			0			(4,474	)		0			(5,474	)
Adjusted Earnings Before Income Taxes		32,930			24,240			22,448			57,170			49,251
Tax Effect		(5,964	)		(4,155	)		(3,261	)		(10,119	)		(7,414	)
Core Operational Profitability (1)	$	26,966		$	20,085		$	19,187		$	47,051		$	41,837

Diluted Earnings Per Common Share	$	1.04		$	0.78		$	0.87		$	1.82		$	1.78
Impact of Adjusted Core Items		0.00			0.00			(0.13	)		0.00			(0.16	)
Core Operational Diluted Earnings Per Common Share	$	1.04		$	0.78		$	0.74		$	1.82		$	1.62

Adjusted Core Efficiency Ratio		45.86	%		51.35	%		48.22	%		48.55	%		50.11	%

(1	)	Core operational profitability was $3.4 million lower than reported net income for the three months ended June 30, 2024 and $4.1 million lower for the six months ended June 30, 2024.

Contact Lisa M. O’Neill
Executive Vice President and Chief Financial Officer
(574) 267-9125
lisa.oneill@lakecitybank.com

The MIL Network –

July 25, 2025

MIL-OSI Banking: ABAC Calls for Open, Predictable and Rules-Based Trade in Standalone Statement Hai Phong, Viet Nam | 25 July 2025 APEC Business Advisory Council

Source: APEC – Asia Pacific Economic Cooperation

At its meeting this week in Hai Phong, Viet Nam, the APEC Business Advisory Council (ABAC) calls on APEC Leaders to reaffirm their commitment to open, predictable, rules-based, non-discriminatory and competitive markets.

The Chair of ABAC’s Regional Economic Integration Working Group, Anna Curzon of ABAC New Zealand, noted the region’s remarkable success in raising living standards and creating jobs and opportunities has been grounded in open markets and underpinned by the global system of trade rules. But that is now in jeopardy in the face of mounting trade tensions, policy volatility and global uncertainty.

“The current turmoil, including rising protectionism, is a distraction from the critical work of revitalizing businesses and our economies, and tackling critical challenges to achieving a prosperous, sustainable future. It poses substantial threats to the international economic outlook,” said Curzon.

“In our Open Markets Statement, we are presenting our Leaders with more than recommendations—we are offering a strategic roadmap to restore the economic dynamism that defines our region. Our ask is simple. We are urging our Leaders to help create the breathing room we need to get back to work,” concluded Curzon.

The statement can be found here.

For further information, please contact:

Stephanie Honey (Ms), REIWG Lead Staffer at +64 21 352 633 and [email protected]
Antonio Basilio (Mr), Director of the ABAC Secretariat at +63 917 849 3351 and [email protected]

MIL OSI Global Banks –

July 25, 2025

MIL-OSI Economics: ABAC Calls for Open, Predictable and Rules-Based Trade in Standalone Statement Hai Phong, Viet Nam | 25 July 2025 APEC Business Advisory Council

Source: APEC – Asia Pacific Economic Cooperation

At its meeting this week in Hai Phong, Viet Nam, the APEC Business Advisory Council (ABAC) calls on APEC Leaders to reaffirm their commitment to open, predictable, rules-based, non-discriminatory and competitive markets.

The Chair of ABAC’s Regional Economic Integration Working Group, Anna Curzon of ABAC New Zealand, noted the region’s remarkable success in raising living standards and creating jobs and opportunities has been grounded in open markets and underpinned by the global system of trade rules. But that is now in jeopardy in the face of mounting trade tensions, policy volatility and global uncertainty.

“The current turmoil, including rising protectionism, is a distraction from the critical work of revitalizing businesses and our economies, and tackling critical challenges to achieving a prosperous, sustainable future. It poses substantial threats to the international economic outlook,” said Curzon.

“In our Open Markets Statement, we are presenting our Leaders with more than recommendations—we are offering a strategic roadmap to restore the economic dynamism that defines our region. Our ask is simple. We are urging our Leaders to help create the breathing room we need to get back to work,” concluded Curzon.

The statement can be found here.

For further information, please contact:

Stephanie Honey (Ms), REIWG Lead Staffer at +64 21 352 633 and [email protected]
Antonio Basilio (Mr), Director of the ABAC Secretariat at +63 917 849 3351 and [email protected]

MIL OSI Economics –

July 25, 2025

MIL-OSI NGOs: Israel-OPT: UN conference must act to end Israel’s genocide, occupation and apartheid – Amnesty briefing

Source: Amnesty International –

Amnesty’s briefing urges action to pressure Israel to end its ongoing genocide in Gaza, lift the humanitarian blockade, and dismantle its unlawful occupation and apartheid system over Palestinians

‘With the very survival of Palestinians at stake, there’s no time to waste with false promises or platitudes’ – Agnès Callamard

Amnesty International has called for next week’s high-level UN conference to discuss the peaceful settlement of the question of Palestine and the two-state solution to focus squarely on the immediate and effective enforcement of international law – including governments’ obligations to prevent and punish genocide and apartheid, and to end Israel’s unlawful occupation of Palestinian territory.

In a new briefing, Amnesty outlines a series of recommendations for governments to take meaningful action and exert the necessary pressure on Israel to end its ongoing genocide against the Palestinians in Gaza, lift the inhumane humanitarian blockade and dismantle its unlawful occupation of the Palestinian territory and its system of apartheid imposed on all Palestinians whose rights it controls.

Agnès Callamard, Amnesty International’s Secretary General, said:

“If the ministers gathering in New York next week are truly committed to forging just, comprehensive and lasting peace and security for both Israelis and Palestinians, the first priority must be to take concrete action to end Israel’s ongoing genocide against Palestinians in Gaza and its unlawful military occupation of Palestinian territory, which has fuelled mass violations against Palestinians and enabled and entrenched Israel’s cruel system of apartheid.

“The current catastrophic crisis created by Israel in Gaza is unbearable, and states must act with urgency and resolve. Statements, condemnation and limited government actions are failing to protect civilians and uphold international humanitarian law.

“Genuine and meaningful action by governments must begin, first and foremost, with the demand for an immediate and sustained ceasefire, as well as the lifting of Israel’s illegal blockade. Without these fundamental urgent steps, any process aimed at addressing the future of Palestinians lacks credibility. How such process be considered meaningful when Palestinians are being slaughtered, starved and forcibly displaced into ever-shrinking pockets of land on a daily basis?

“Governments must be unequivocal: Israel is not above the law and accountability is a priority. They must seize the opportunity presented by this conference to end their active or tacit support for Israeli violations or their self-imposed inertia. The conference must lead to a clear commitment by all states to suspend all economic activity that contributes to or is directly linked to Israel’s illegal occupation, its system of apartheid or its genocide against the Palestinians in Gaza.

“With the very survival of Palestinians at stake, there’s no time to waste with false promises or platitudes. As people continue to take to the streets to demand global action and as more and more states are recognising Israel’s genocide for what it is, an empty, performative exercise would not be just tone-deaf, it would be unconscionable.

“For this conference to be anything more than a charade, governments must heed our calls. They must turn words into action that is firmly rooted in international law and protection of human rights.”

Among the recommendations, Amnesty is urgently calling on governments to:

Demand an immediate and lasting ceasefire in Gaza, ensure full, unimpeded access to all areas of Gaza and firmly reject Israel’s military-controlled, non-neutral aid distribution model. A principled, UN-led humanitarian response must be immediately restored, and funding for impartial humanitarian organisations must be maintained and expanded.
End any trade or transfers that contribute to or are linked to the genocide, apartheid or the unlawful occupation. This includes in the first place banning all weapons and surveillance equipment transfers and any military assistance to Israel. States must end preferential trade agreements and cooperation deals with Israel, including the EU-Israel Trade Agreement.
Adopt targeted sanctions against those Israeli officials most implicated in international crimes and cooperate with the International Criminal Court, including by implementing its arrest warrants.
Commit to the reconstruction of the Gaza Strip and the rehabilitation of its people while opposing any forced displacement of Palestinians within or outside of Gaza.
Establish mechanisms for reparations and rehabilitation of Palestinians, with Israel bearing the primary financial responsibility.

Amnesty is also urgently calling on corporations and civil society:

Corporations must refuse any involvement in, or direct linkage to Israel’s unlawful actions and ensure that they are not contributing to serious human rights violations themselves.
Civil society and the public at large must continue mobilising and campaigning to demand that governments abide by their legal obligations under international law and denounce companies, banks and other economic actors that contribute to or are directly linked to Israel’s violations of international law, and demand that they stop.

Co-chaired by France and Saudi Arabia, the High-level International Conference for the Peaceful Settlement of the Question of Palestine and the Implementation of the Two-State Solution will take place in New York from 28 to 29 July. Agnès Callamard and other Amnesty International spokespeople will be available for interviews.

Amnesty’s Briefing and Recommendations: July 2025 High-Level Conference on the Question of Palestine and the Two-State Solution available here.

MIL OSI NGO –

July 25, 2025

MIL-OSI United Kingdom: Scotland gets £66 million transport boost as part of record Spending Review settlement

Source: United Kingdom – Government Statements

Press release

Scotland gets £66 million transport boost as part of record Spending Review settlement

Today (25 July) the Chancellor will visit Paisley to announce £66 million of investment in Scottish transport.

Chancellor Rachel Reeves announces millions for West of Scotland transport links and extra funding to explore upgrades to the A75.
Investment follows the Industrial Strategy which boosted Advanced Manufacturing clusters and the Spending Review which delivered a record settlement for Scottish public services.
Funding is part of Government’s plan to invest in the economy right across the UK.

The investment will help workers access jobs in high growth sectors supercharged by the government’s modern Industrial Strategy and Spending Review.

The UK Government is boosting investment across Scotland through two investment zones and multiple industrial sites from the North East of Scotland Investment Zone to the Prestwick Aerospace Cluster.

This £66 million will work alongside these investments to fund three Scottish transport schemes and create direct links between towns and economic hubs in the West of Scotland.

Renfrewshire Council will get £38.7 million to link Paisley town centre with Advanced Manufacturing Innovation District Scotland (AMIDS) and Glasgow Airport. New walking, cycling, bus and car links will be built so local people can benefit from the growth of high value manufacturing in Renfrewshire.

Another £23.7 million will be given to North Ayrshire Council to upgrade the B714. This upgrade will see a much faster route between the Three Towns of Ardrossan, Saltcoats and Stevenston to Glasgow, and cut traffic in Kilwinning. The Chancellor prioritised finding this cash during last month’s Spending Review, which also saw billions invested in Scotland’s growth sectors.

Chancellor of the Exchequer, Rachel Reeves said:

We’re pledging billions to back Scottish jobs, industry and renewal – that’s why we’re investing in the major transport projects, including exploring upgrades to the A75, that local communities have been calling for.

Whilst previous governments oversaw over a decade of decline of our transport infrastructure, we’re investing in Britain’s renewal. This £66 million investment is exactly what our Plan for Change is about, investing in what matters to you in the places that you live.

Meanwhile, the Scottish Government will be given an extra £3.45 million to suggest upgrades to the A75 in Dumfries and Galloway. The key road, which links the Cairnryan port serving Northern Ireland with the rest of the UK, is vital to UK connectivity and growing the economy. This new money comes on top of the up-to-£5 million announced at the Chancellor’s Autumn Budget 2024.

As part of a wider investment strategy in Scotland the Spending Review saw around £200 million committed to the Acorn Carbon Capture, Usage and Storage project, subject to business cases, and £8.3 billion confirmed for Great British Energy, strengthening Scotland’s position as the home of the UK’s clean energy revolution. 

A multi-decade, multi-billion project to secure jobs at HM Naval Base Clyde was also kickstarted with an initial £250 million investment.

Whilst in Scotland the Chancellor will also visit the Edinburgh Supercomputer, which will receive up to £750 million in UK Government funding, later on Friday. The funding, announced during the Chancellor’s Spending Review will ensure that Scotland becomes home to the UK’s most powerful Supercomputer, supporting Scottish research and development, and industry.

The Spending Review delivered a record settlement for Scottish public services, with the Scottish Government’s largest settlement, in real terms, since devolution in 1998. Scottish Government’s settlement is growing in real terms between 2024-25 and 2028-29. This translates into an average of £50.9 billion per year between 2026-27 and 2028-29.

Scotland Secretary, Ian Murray, said:

This £66 million investment in Scotland’s roads demonstrates the UK Government’s commitment to improving infrastructure and driving economic growth in all parts of the UK as part of our Plan for Change. This investment will make a real difference to people’s daily lives and to the local economies of the South of Scotland, Ayrshire and Renfrewshire.

New road links will connect Paisley town centre with Glasgow Airport and the new advanced manufacturing innovation district, to boost high value manufacturing in Renfrewshire. The upgrade to the B714 will speed up journeys between Glasgow and the three towns of Ardrossan, Saltcoats and Stevenston, as well as cutting traffic in Kilwinning. And the A75 is strategically important just not within but beyond Scotland. Its upgrading is long overdue. I am pleased that the UK Government has stepped up to fund the delivery of the A75 feasibility study in full.

This investment is yet another example of how the UK Government is building the foundations for a stronger, more prosperous future that benefits communities right across Scotland.

More information

As strategic roads in Scotland are the Scottish Government’s responsibility, any future upgrades to the A75 will be funded from the Scottish Government’s block grant.
The Ayrshire and Renfrewshire projects are part of a £378m UK-wide Levelling Up Fund cash boost, upgrading transport links across Britain, which will also be announced today.
Building work on the LUF projects will be able to start as final business cases are given the green light by the Department for Transport.

Published 25 July 2025

MIL OSI United Kingdom –

July 25, 2025

MIL-OSI Asia-Pac: Belt-Road forum held in Beijing

Source: Hong Kong Information Services

The Hong Kong Special Administrative Region Government, the National Development & Reform Commission (NDRC) and relevant central ministries held the eighth Joint Conference on Advancing Hong Kong’s Full Participation in & Contribution to the Belt & Road Initiative in Beijing today.

NDRC Vice Chairman Zhou Haibing attended the conference, together with representatives from the commission, the Hong Kong & Macao Work Office of the Communist Party of China Central Committee, the Hong Kong & Macao Affairs Office of the State Council, the Ministry of Foreign Affairs, the State-owned Assets Supervision & Administration Commission of the State Council, and the Liaison Office of the Central People’s Government in the Hong Kong SAR.

Secretary for Justice Paul Lam, in his capacity as chairperson of the Working Group on Belt & Road Development under the Steering Group on Integration into National Development, led Hong Kong officials to attend the conference.

He pointed out that the Hong Kong SAR Government has been taking forward Belt-Road collaboration to go deeper and deliver outcomes, fully participating in and contributing to the initiative under the guidance of the major steps the country has taken to support high-quality co-operation, so as to facilitate Hong Kong’s integration into overall national development.

With the country’s support, Hong Kong will deepen international exchanges and actively utilise its advantages to exert a greater role in the nation’s high-level opening up to the world, Mr Lam added.

The justice chief also said the Hong Kong SAR Government is exploring emerging markets such as the Middle East, the Association of Southeast Asian Nations and other Belt & Road countries, while making full use of the city’s professional services, thereby building it as a gateway between the country and the world.

He expressed gratitude to the central government for the staunch support of hosting the International Organization for Mediation headquarters in Hong Kong, which will strengthen its roles as an international dispute resolution services centre and a hub for international mediation.

Secretary for Commerce & Economic Development Algernon Yau, who was also at the conference, noted that the Hong Kong SAR Government will fully capitalise on the 10th Belt & Road Summit to showcase the city’s roles as an active participant and the premier platform to the Mainland and overseas.

At the meeting, Mr Yau reported on Hong Kong’s progress in carrying out Belt & Road work, including the ongoing pursuit of Hong Kong’s early accession to the Regional Comprehensive Economic Partnership, pursuit of early conclusion of ongoing negotiations for free trade and investment agreements, and more.

Today’s session also covered the work proposals on further promoting the Belt & Road Initiative put forward for consideration by central ministries. Relevant Mainland ministries introduced their work in supporting Hong Kong’s participation in and contribution to the initiative and provided feedback on the work proposals.

MIL OSI Asia Pacific News –

July 25, 2025

MIL-OSI Europe: Italy: EIB and Banca Ifis provide €200 million in financing to back Italian pharmacies, with a focus on female entrepreneurs and cohesion

Source: European Investment Bank

The EIB has approved a new €100 million credit line to Banca Ifis to make it easier for Italian pharmacies to access finance.
Banca Ifis will match the EIB’s contribution with its own resources, bringing the total funding for businesses to €200 million.
At least €60 million will go to pharmacies managed by women. This operation brings the total investments supported by the EIB and Banca Ifis to €800 million since 2019.

The European Investment Bank (EIB) and Banca Ifis have signed a €200 million agreement to back the development of pharmacies in Italy, with a particular focus on female entrepreneurs and cohesion. The signature was announced today by EIB Vice-President Gelsomina Vigliotti and Banca Ifis Vice-President Rosalba Benedetto.

“This agreement marks a further step towards a more inclusive, dynamic and sustainable economy. Backing small and medium companies strengthens a country’s business environment and becomes even more of a strategic imperative when access to finance means new opportunities for female entrepreneurs, promoting growth, innovation and social cohesion,” said EIB Vice-President Gelsomina Vigliotti.

“This agreement confirms our support for Italian small and medium companies and our commitment to backing gender equality and female entrepreneurship. The pharmacies we are backing with sector specialist Banca Credifarma provide access to local primary care services and are a vital focal point for local communities. This agreement reinforces our years-long journey with an institution at the highest echelons of the European Union – the EIB – which has always put environmental, social and governance issues at the heart of its initiatives with the aim of accelerating the sustainable transition of our economy,” said Banca Ifis Vice-President Rosalba Benedetto.

In concrete terms, the agreement states that EIB will provide Banca Ifis with €100 million by signing two contracts of €50 million each, opening a credit line with favourable interest rates. Banca Ifis will match the amount provided by the EIB, bringing the total funding offered to Italian pharmacies to €200 million. The loan will be granted by Banca Credifarma, a Banca Ifis-controlled financial institution specialised in supporting the needs of pharmacies.

Of the €200 million total, at least 30% (over €60 million) will back female entrepreneurs in pharmacies meeting the following criteria: i) at least 51% owned by women; ii) managed by a woman; iii) implementing inclusive policies promoting female employment, exceeding the national sector average. A particular focus will be placed on pharmacies located in cohesion regions.

The agreement signed today is the sixth between the EIB and Banca Ifis, with the two organisations providing over €800 million to Italian small and medium companies since 2019. This is also the EIB’s first credit line to focus solely on the Italian pharmacy sector.

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives. EIB projects bolster competitiveness, drive innovation, promote sustainable development, enhance social and territorial cohesion, and support a just and swift transition to climate neutrality. In the last five years, the EIB Group has provided more than €58 billion in financing for projects in Italy. All projects financed by the EIB Group are in line with the Paris Climate Agreement. The EIB Group does not fund investments in fossil fuels. We are on track to deliver on our commitment to support €1 trillion in climate and environmental sustainability investment in the decade to 2030 as pledged in our Climate Bank Roadmap. Over half of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation and adaptation, and a healthier environment. Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower.

Banca Ifis

Banca Ifis is an Italian challenger bank providing specialty finance services for the real economy. Founded in 1983, it is listed on the Milan Stock Exchange and has around 2 000 employees. Banca Ifis’ business model mainly focuses on three pillars: commercial and corporate banking services; acquisition and management of non-performing loan portfolios in the small tickets unsecured segment; and retail savings solutions with the Rendimax 20-year deposit account. Its 40-year presence on the market means that Banca Ifis can anticipate businesses’ needs, supporting them on a day-to-day basis with tailored financial solutions. Technological innovation research and ongoing digital transformation are enabling the bank to expand its range of products and services and to improve the quality and speed of service to businesses. It implements its sustainable business approach by seeking solutions promoting the environmental transition and inclusion.

To this end, Banca Ifis created the Kaleidos social impact lab to help spread of a more equitable, inclusive and supportive culture. Created under the auspices of Chairman Ernesto Fürstenberg Fassio, the initiative is backed by a proprietary social impact measurement model enabling Banca Ifis to measure positive impact inside and outside the company. In 2025, the bank successfully acquired illimity Bank in a public takeover and exchange offer that launched a new development phase in which Banca Ifis aims to consolidate its leadership in the Italian specialty finance market.

MIL OSI Europe News –

July 25, 2025

MIL-OSI Europe: EIB supports Greek foodtech innovator STIQ with €20 million under InvestEU to scale up AI-powered cloud kitchen platform

Source: European Investment Bank

The European Investment Bank is investing €20 million in Greek foodtech company STIQ to support innovation, artificial intelligence, and sustainable food delivery solutions.
The financing, backed by the InvestEU programme, will help STIQ scale up its technology platform, reduce food waste, and expand into new European markets.
The project promotes digital transformation and economic cohesion, by supporting a Greece-based start-up bringing cutting-edge innovation to the traditional food services sector.

The European Investment Bank (EIB) is investing €20 million in STIQ, a fast-growing Greek foodtech company pioneering AI-powered cloud kitchen technology. The financing, backed by the InvestEU programme, will support the company’s R&D, digital innovation and international expansion, helping transform the future of food delivery in Europe through smarter, more sustainable and scalable operations.

The investment is part of the EIB’s strategic focus on digital transformation, innovation and cohesion, and reflects its continued support for high-potential technology ventures in Southern and Eastern Europe. Structured as venture debt with quasi-equity features, the financing will enable STIQ to accelerate the development of its proprietary platform, deploy advanced AI features, and expand its operational footprint beyond Greece into new EU markets.

EIB Vice-President Yiannis Tsakiris, said: “This investment reflects the EIB’s firm commitment to supporting innovation, digital transformation and entrepreneurship across Europe. STIQ is reshaping the food delivery model through technology, and we are proud to support a Greek company that is building scalable, sustainable solutions with European reach.”

Strategic impact and EU policy alignment

The EIB financing is backed by the InvestEU programme under the “Future Technologies” window and addresses key market gaps in access to growth capital for early-stage European tech companies. It reflects the EU’s broader commitment to:

Accelerating the deployment of artificial intelligence and advanced digital services
Enhancing food system resilience through innovation and data
Reducing environmental impact in urban logistics and delivery networks

· Supporting economic cohesion by investing in regions with high growth potential but limited access to venture financing.

Scaling foodtech innovation from Greece to Europe

Founded in Athens in 2022, STIQ has quickly emerged as a trailblazer in the virtual restaurant (cloud kitchen) space. Its model integrates software, logistics and food operations into a single platform that allows multiple digital restaurant brands to be prepared and delivered efficiently from a network of culinary hubs.

Key features of the platform include:

AI-powered demand forecasting, dynamic menu engineering and inventory optimisation
Smart routing and grouped order delivery, reducing CO₂ emissions and delivery time
Data-driven operations that enhance consistency, food safety, and customer satisfaction.

With five live kitchen hubs in Athens, serving over 20 brands to a potential market of 3 million residents, STIQ currently employs 200 staff and plans to reach 30 hubs across Europe by 2029. The company is scaling rapidly while maintaining a strong focus on food quality, operational efficiency and environmental responsibility, including zero-waste targets and the adoption of electric delivery fleets.

Konstantinos Davaris, Founder & CEO of STIQ said: “We are thrilled to welcome the European Investment Bank as a strategic partner in our mission to redefine fast-casual dining. At StiQ, we’re leading a new era of healthy eating by blending cutting-edge technology and AI with culinary excellence. Through our diverse portfolio of brands, including Protein Garden, Dinas, Healthy Concept, and more, we deliver

delicious, nutritious, and affordable meals that make healthy dining accessible to everyone. With EIB’s support, we’re ready to scale our vision, fostering a more sustainable, health-conscious future for communities worldwide.”

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high -impact projects in 2024, boosting Europe’s competitiveness and security.

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers.Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

High-quality, up-to-date photos of our headquarters for media use are available here.

About InvestEU

The InvestEU programme brings together EU financial tools to support investment, innovation and job creation. Through an EU budget guarantee and cooperation with partners such as the EIB, it aims to mobilise more than €372 billion in investment during 2021–2027 across strategic sectors and regions.

About STIQ

STIQ is an AI-driven foodtech company operating a digital platform of cloud kitchens and virtual restaurant brands. Headquartered in Cyprus and founded in Athens, it combines technology, culinary expertise and logistics to deliver smarter, faster and more sustainable food services. The company has raised over €10 million to date and is now entering its European growth phase.

EIB supports Greek foodtech innovator STIQ with €20 million under InvestEU to scale up AI-powered cloud kitchen platform
EIB supports Greek foodtech innovator STIQ with €20 million under InvestEU to scale up AI-powered cloud kitchen platform
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MIL OSI Europe News –

July 25, 2025

MIL-OSI Europe: EIB supports Greek foodtech innovator STIQ with €20 million under InvestEU to scale up AI-powered cloud kitchen platform

Source: European Investment Bank

The European Investment Bank is investing €20 million in Greek foodtech company STIQ to support innovation, artificial intelligence, and sustainable food delivery solutions.
The financing, backed by the InvestEU programme, will help STIQ scale up its technology platform, reduce food waste, and expand into new European markets.
The project promotes digital transformation and economic cohesion, by supporting a Greece-based start-up bringing cutting-edge innovation to the traditional food services sector.

The European Investment Bank (EIB) is investing €20 million in STIQ, a fast-growing Greek foodtech company pioneering AI-powered cloud kitchen technology. The financing, backed by the InvestEU programme, will support the company’s R&D, digital innovation and international expansion, helping transform the future of food delivery in Europe through smarter, more sustainable and scalable operations.

The investment is part of the EIB’s strategic focus on digital transformation, innovation and cohesion, and reflects its continued support for high-potential technology ventures in Southern and Eastern Europe. Structured as venture debt with quasi-equity features, the financing will enable STIQ to accelerate the development of its proprietary platform, deploy advanced AI features, and expand its operational footprint beyond Greece into new EU markets.

EIB Vice-President Yiannis Tsakiris, said: “This investment reflects the EIB’s firm commitment to supporting innovation, digital transformation and entrepreneurship across Europe. STIQ is reshaping the food delivery model through technology, and we are proud to support a Greek company that is building scalable, sustainable solutions with European reach.”

Strategic impact and EU policy alignment

The EIB financing is backed by the InvestEU programme under the “Future Technologies” window and addresses key market gaps in access to growth capital for early-stage European tech companies. It reflects the EU’s broader commitment to:

Accelerating the deployment of artificial intelligence and advanced digital services
Enhancing food system resilience through innovation and data
Reducing environmental impact in urban logistics and delivery networks

· Supporting economic cohesion by investing in regions with high growth potential but limited access to venture financing.

Scaling foodtech innovation from Greece to Europe

Founded in Athens in 2022, STIQ has quickly emerged as a trailblazer in the virtual restaurant (cloud kitchen) space. Its model integrates software, logistics and food operations into a single platform that allows multiple digital restaurant brands to be prepared and delivered efficiently from a network of culinary hubs.

Key features of the platform include:

AI-powered demand forecasting, dynamic menu engineering and inventory optimisation
Smart routing and grouped order delivery, reducing CO₂ emissions and delivery time
Data-driven operations that enhance consistency, food safety, and customer satisfaction.

With five live kitchen hubs in Athens, serving over 20 brands to a potential market of 3 million residents, STIQ currently employs 200 staff and plans to reach 30 hubs across Europe by 2029. The company is scaling rapidly while maintaining a strong focus on food quality, operational efficiency and environmental responsibility, including zero-waste targets and the adoption of electric delivery fleets.

Konstantinos Davaris, Founder & CEO of STIQ said: “We are thrilled to welcome the European Investment Bank as a strategic partner in our mission to redefine fast-casual dining. At StiQ, we’re leading a new era of healthy eating by blending cutting-edge technology and AI with culinary excellence. Through our diverse portfolio of brands, including Protein Garden, Dinas, Healthy Concept, and more, we deliver

delicious, nutritious, and affordable meals that make healthy dining accessible to everyone. With EIB’s support, we’re ready to scale our vision, fostering a more sustainable, health-conscious future for communities worldwide.”

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high -impact projects in 2024, boosting Europe’s competitiveness and security.

All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers.Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

High-quality, up-to-date photos of our headquarters for media use are available here.

About InvestEU

The InvestEU programme brings together EU financial tools to support investment, innovation and job creation. Through an EU budget guarantee and cooperation with partners such as the EIB, it aims to mobilise more than €372 billion in investment during 2021–2027 across strategic sectors and regions.

About STIQ

STIQ is an AI-driven foodtech company operating a digital platform of cloud kitchens and virtual restaurant brands. Headquartered in Cyprus and founded in Athens, it combines technology, culinary expertise and logistics to deliver smarter, faster and more sustainable food services. The company has raised over €10 million to date and is now entering its European growth phase.

EIB supports Greek foodtech innovator STIQ with €20 million under InvestEU to scale up AI-powered cloud kitchen platform
EIB supports Greek foodtech innovator STIQ with €20 million under InvestEU to scale up AI-powered cloud kitchen platform
©EIB
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MIL OSI Europe News –

July 25, 2025

MIL-OSI Europe: Written question – Withdrawal of the ‘standard essential patents’ proposal – E-002938/2025

Source: European Parliament

Question for written answer E-002938/2025
to the Commission
Rule 144
José Cepeda (S&D)

During the exchange of views on the priorities of the Presidency of the Council of the European Union on 15 July 2025 in the Committee on Legal Affairs, the current Council Presidency stated that it was ready to restart negotiations on the ‘standard essential patents’ file once the Commission definitively decides whether or not to withdraw the proposal.

The problems that arise during negotiations between companies that hold essential patents and other companies that need to use patent-protected technology to develop their products, for example in the automotive and domestic appliance industries, remain unresolved. The regulation would help many EU companies, particularly SMEs, by balancing their positions in negotiations with third parties on an issue as sensitive as telecommunications patents.

In light of the answer to question E-001708/2025[1] and the answer given by the EU Council Presidency:

What is the Commission planning to do in relation to the proposal?

Submitted: 16.7.2025

[1] https://www.europarl.europa.eu/doceo/document/E-10-2025-001708_EN.html

Last updated: 25 July 2025

MIL OSI Europe News –

July 25, 2025

MIL-OSI Europe: Spain: Greene signs €224 million financing deal with EIB and Santander to invest in non-recyclable waste recovery

Source: European Investment Bank

The financing will be used to build five innovative plants that will convert more than 200 000 tonnes of waste a year into raw materials for industry.
Approximately 50% of the financing will come from the European Investment Bank (EIB) and the other 50% from Santander.
The project supports the circular economy, climate action and cohesion between regions.

Greene Enterprise has signed a €224 million financing deal with the European Investment Bank (EIB) and Santander to build five innovative industrial plants in Spain for the treatment of non-recyclable waste. Greene is a Spanish company offering an innovative technology solution for the treatment and recycling of industrial and urban solid waste, biomass and sludge, diverting it from incineration and landfill.

Expected to be operational between 2026 and 2029, the plants will convert this waste into high-value industrial products through advanced pyrolysis technology. They will all concentrate on extracting value from the reject fraction – waste that would otherwise be sent to landfills or incinerated.

The total treatment capacity of the five plants will exceed 200 000 tonnes a year. The waste will be converted into pyrolytic oil, char and other reusable materials for industry, supporting the circular economy and helping reduce CO₂ emissions.

The projects to be financed are located in Muel (Zaragoza), La Selva del Camp (Tarragona), San Cristóbal de Entreviñas (Zamora), Madridejos (Toledo) and As Somozas (A Coruña). The Valogreene CML Madridejos and Valogreene Recinor As Somozas plants are in the final phase of construction and are expected to be commissioned in 2026. Two of the plants have been designated as priority interest projects by the autonomous communities of Aragón and Galicia, underscoring their strategic nature.

The construction and commissioning of the Valogreene plants will help boost the local economy and create jobs in the towns where they are located. Once operational, each plant is expected to create more than 20 direct jobs and more than 40 indirect jobs.

The project supports the EU Circular Economy Action Plan and contributes to the EIB’s strategic priorities of climate action and cohesion between regions set out in its Strategic Roadmap for 2024-2027.

Photo legend: Valogreene Recinor As Somozas plant

Background information

EIB

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.

The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.

All projects financed by the EIB Group are in line with the Paris Agreement, as pledged in its Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.

In Spain, the EIB Group signed €12.3 billion of new financing for more than 100 high-impact projects in 2024. This financing is contributing to the green and digital transition, economic growth, competitiveness and improved services for citizens.

High-quality, up-to-date photos of the organisation’s headquarters for media use are available here.

Greene

Greene Enterprise was founded in 2011 by four chemistry entrepreneurs from Elche, Alicante. Its shareholders include two major investment groups. Greene currently has more than 130 employees.

The company provides the market with an innovative and efficient technology that addresses the need to manage and eliminate materials classified as waste, diverting them from landfill and incineration. This solution applies to various types of waste, notably industrial solid waste, urban solid waste, biomass and water treatment sludge.

Our technology enables the efficient conversion of solid waste into high-quality raw materials. We use an integrated approach that combines advanced separation techniques and innovative chemical processes to extract reusable materials.

The Valogreene solid waste material recovery plants developed by Greene target the currently non-recoverable reject fraction of waste and convert it into sustainable raw materials such as oils, calcium carbonate-rich materials, activated carbon, synthetic waxes and hydrogen. This is achieved through a sustainable and profitable thermosconversion process that aligns with circular economy principles and supports 2030 targets.

High-quality, up-to-date photos of the organisation’s headquarters and projects for media use are available here: https://www.greene.es/multimedia/

Santander

Banco Santander (SAN SM) is a leading commercial bank founded in 1857, headquartered in Spain. It is one of the largest banks in the world by market capitalisation. The group’s activities are consolidated into five global businesses: Retail & Commercial Banking, Digital Consumer Bank, Corporate & Investment Banking (CIB), Wealth Management & Insurance and Payments (PagoNxt and Cards). This allows the bank to better leverage its unique combination of global scale and local leadership. Santander aims to be the best open financial services platform, providing services to individuals, small and medium-sized businesses, corporates, financial institutions and governments. The bank’s purpose is to help people and businesses prosper in a simple, personal and fair way. Santander is building a more responsible bank and has made a number of commitments to support this objective, including raising €220 billion in green financing between 2019 and 2030. In the first quarter of 2025, Banco Santander had €1.4 trillion in total funds, 175 million customers, 7 900 branches and 207 000 employees.

MIL OSI Europe News –

July 25, 2025

MIL-OSI United Kingdom: G20 Development Meeting: Baroness Chapman’s speech

Source: United Kingdom – Executive Government & Departments

Speech

G20 Development Meeting: Baroness Chapman’s speech

Minister for Development, Baroness Chapman, gave a speech on the UK’s new approach to development at the G20 Development Ministerial Meeting in South Africa .

Congratulations to the Presidency on hosting the first G20 in Africa.

It has taken 20 years to meet in Africa. There is no world in which this should have taken so long. From the UK’s perspective, we should not wait another 20 years to do this again.

This is at the core of what I want to use my intervention to say. That we in the UK believe we have to do development differently now.

We cannot start from the idea that ‘we know best’. We must not just pay lip service to what our partners tell us. When we say partnership and not paternalism – we have to mean it.

The solutions of 2005 are not the solutions of 2025. And with environmental shocks, health crises, and more conflicts than at any time since the middle of the last century, all hitting the poorest hardest, we have to face up to reality.

This is the only way to rise to the global challenge that Mandela gave us – to Make Poverty History.

There are three specific ways in which we are transforming the UK’s approach.

One – we are listening. Our new approach is already informing our new strategy. But there is a long way to go.

New leadership from across the globe is changing what is possible, again. Powerful voices like President of the African Development Bank, Akinwumi Adesina. The new Commonwealth Secretary General, Shirley Botchwey. Nigerian Health Minister, Muhammad Ali Pate.

These are just a few of the 47 African governments and multilateral bodies, and over 200 businesses and communities that the UK has consulted – following our Foreign Secretary’s visit to Cape Town last year.

Two – we are thinking like investors, not donors, and bringing all the UK’s strengths to the table.

In partnership, we can share everything from world-class health and tech know-how, to new ways of getting finance flowing into emerging and developing markets – from the world’s green finance hub in London.

I saw some of this yesterday at an agri-business in this region, with British International Investment helping to create 400 local jobs. Critical for the economy and for supporting South Africa’s Just Energy Transition Partnership.

We’re making headway on getting money in place before disasters hit, and unlocking private capital – as we discussed together in Seville, at FFD4 two weeks ago.

The private sector is vital – which is why we matched private funding for Gavi, so we can get new ideas and fresh thinking into how we keep our populations healthy.

And third – this is all part of our shared mission for economic growth and opportunity. That is how we get countries on a journey out of development and aid – and help millions more people out of poverty.

So, I want to thank the Presidency for choosing themes that go to the heart of how we can work together.

On illicit finance – my friend the Foreign Secretary is leading the UK’s efforts to tackle this shared challenge, and he will host a global conference.

There is more though for us all to do – to give people confidence that they can trust governments to use their money well, and combat criminals laundering money through the world’s financial centres.

And on social protection – together, we are developing systems every government needs, to reach the most vulnerable people facing hunger and poverty.

That includes the work my colleague Lord Collins is co-leading, alongside Somalia’s Deputy Prime Minister – to make sure this can be felt in the most fragile places on earth.

Finally, these auspicious occasions, as I am sure you all know, can happen with such frequency that we show up and we repeat positions we have been stuck on for years. But instead, I want to use every occasion we come together as an opportunity to leave ‘business as usual’ behind – and push for the change we all know is needed.

So we are going to work together, harder – to secure reform at the United Nations, the International Monetary Fund, and the World Bank.

To improve and expand the G20’s approach to debt, ahead of the leaders summit.

To back Brazil’s work to make the next climate summit count.

And to champion ambition and innovation at the African Development Bank – as well as the replenishment of the Global Fund, that we are proud to co-host alongside South Africa.

This is how we remake development for the next 20 years. Making sure we don’t wait decades to meet in Africa again.

Starting with the idea that we need to learn from one another – and drop the old idea that ‘we know best’.

And facing up to reality. So we listen to our partners. Think like investors. And bringing all our strengths to bear, in pursuit of the economic growth and opportunity that we need – to help millions more people put poverty behind them.

Thank you.

Published 25 July 2025

MIL OSI United Kingdom –

July 25, 2025

India–UK FTA will boost Indian manufacturing, services: RBI Governor

Source: Government of India

Source: Government of India (4)

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday said the India–UK Free Trade Agreement (FTA) is expected to provide a boost to multiple sectors of the Indian economy, including manufacturing and services.

Speaking at an event in Mumbai, Malhotra said that with multilateralism losing momentum globally, such bilateral agreements are becoming increasingly important for India’s trade strategy.

“The UK FTA is the way forward, because unfortunately, multilateralism appears to have taken a back seat,” Malhotra said, adding that trade negotiations with the United States are also at an advanced stage.

Malhotra also noted that India is actively pursuing several other trade agreements, many of which are currently under negotiation.

The RBI Governor’s remarks came a day after Union Commerce and Industry Minister Piyush Goyal said India is expanding its trade relations across geographies, following the signing of the landmark FTA with the UK.

“Very good talks are going on with New Zealand, Oman, Chile, Peru, and the European Union. And on the bilateral trade agreement (BTA), good discussions are also underway with the United States,” Goyal told IANS in London. “I firmly believe that all these negotiations will lead to positive outcomes.”

India and the US recently concluded the fifth round of BTA negotiations in Washington, DC.

The Trade and Economic Partnership Agreement (TEPA) between India and the European Free Trade Association (EFTA) is set to come into effect on October 1. The agreement is projected to generate around one million direct jobs in India.

The India–UK FTA, now officially termed the Comprehensive Economic and Trade Agreement (CETA), is being viewed as a key milestone in India’s global trade policy, with the potential to unlock billions of dollars in trade and investment.

—IANS

July 25, 2025

MIL-OSI Asia-Pac: CE meets Deputy PM of Vanuatu

Source: Hong Kong Information Services

Chief Executive John Lee today met Deputy Prime Minister and Minister of Finance & Economic Management of Vanuatu Johnny Koanapo Rasou to discuss issues of mutual interest.

Welcoming Mr Rasou and his delegation to Hong Kong to attend economic and trade co-operation events, Mr Lee said the city is leveraging its advantages under the “one country, two systems” principle of connecting the Mainland and the world, and is actively deepening international co-operation.

The Chief Executive said that apart from strengthening traditional markets, Hong Kong will further explore emerging markets comprising Belt & Road countries and expand economic and trade networks with countries of the Global South countries including Vanuatu.

He added that as a functional platform for the Belt & Road Initiative, Hong Kong boasts a highly internationalised, market-oriented, and business-friendly environment, making it an ideal place for companies to expand global operations.

Mr Lee welcomed enterprises from Vanuatu to leverage the city’s role as a “super connector” and “super value-adder” to explore overseas and Mainland markets, enhancing trade and business exchanges.

MIL OSI Asia Pacific News –

July 25, 2025

MIL-OSI United Kingdom: Fisheries and Seafood Scheme 2025 closed following strong demand

Source: United Kingdom – Executive Government & Departments

News story

Fisheries and Seafood Scheme 2025 closed following strong demand

The latest round of the Fisheries and Seafood Scheme (FaSS) closes following high demand and interest from across the seafood and marine sectors.

Since re-opening in June, the Fisheries and Seafood Scheme (FaSS) has once again attracted a high volume of interest from across the seafood and marine sectors in England. Due to the number and total value of applications received, the scheme is now closed to new applications.

This year’s £6 million funding allocation builds on the more than £35 million already committed through FaSS to over 1,700 projects, supporting innovation and growth across the catching, aquaculture, processing, charity and recreational sectors, as well as efforts to enhance the marine environment.

Applications to FaSS are processed on a first-come, first-served basis. All applications submitted before the closure date are currently being reviewed. Applicants who have received an acknowledgement from the MMO’s grants team will continue through the assessment process. The team will also contact any recent applicants who have not yet received confirmation to advise them of next steps.

Paul Errington, Acting Director of Finance and Resources at MMO, said:

We’re pleased to see another strong response to FaSS this year, with applications that demonstrate the sector’s drive to innovate, build a resilient seafood sector and grow sustainably. The projects that FaSS supports will help boost local economies in our coastal communities and create long-term opportunities across the seafood supply chain.

Applications submitted after 5pm on 25 July 2025 will not be considered. The FaSS panel will meet in September to assess all eligible applications for projects with total costs of £150,000 or more that were submitted before the 21 July 2025 deadline.

All funded projects must be completed by 31 March 2026. All applicants will be notified directly, once all projects have been considered.

Further information

For more information about FaSS, please visit: www.gov.uk/guidance/fisheries-and-seafood-scheme

Published 25 July 2025

MIL OSI United Kingdom –

July 25, 2025

MIL-OSI Economics: ABAC Issued Declaration on Sustainable AI Infrastructure and Investment Hai Phong, Viet Nam | 25 July 2025 APEC Business Advisory Council

Source: APEC Secretariat

The APEC Business Advisory Council (ABAC) released its Declaration on Sustainable Artificial Intelligence (AI) Infrastructure and Investment, underscoring the business community’s commitment to a sustainable AI future.

AI is rapidly transforming economies and societies across the region. It holds immense potential to unlock innovation, drive productivity, and promote inclusive growth. However, none of this works without infrastructure—underpinned by data centers and the electricity grids that support them. The full benefits of AI cannot be realized without resilient, efficient, and sustainable infrastructure to support its development and deployment.

“Energy gaps are deepening inequality and limiting participation in the digital economy. The digital divide isn’t just about tech anymore—it’s about capital access, grid resilience and human capacity. Our declaration reaffirms our commitment to APEC’s 2025 vision of ‘Building a Sustainable Tomorrow’,” said Jan De Silva, Chair of ABAC’s AI and Digital Innovation Working Group.

This meeting took place in advance of APEC’s first Digital and AI Ministerial meeting taking place August 4-6 in Incheon, Korea. ABAC has committed to four priority actions:

Accelerating Investment in Sustainable AI Infrastructure
Embedding Sustainability into the AI Lifecycle
Fostering Cross-Economy Collaboration and Investment
Advocating for Enabling Policies and Standards

“ABAC reaffirms its commitment to shaping an AI-powered future that is not only innovative and inclusive but also sustainable and resilient. We invite governments, industry, academia, and civil society to join us in this shared effort to build responsible AI across the APEC region,” said ABAC Chair, HS Cho.

The full declaration can be found here.

For further information, please contact:

Amanda Doyle (Ms), AIDIWG Lead Staffer at +1-905-467-0019 and [email protected]
Antonio Basilio (Mr), Director of the ABAC Secretariat at +63 917 849 3351 and [email protected]

MIL OSI Economics –

July 25, 2025

MIL-OSI Analysis: Beijing’s ‘plausible deniability’ on arms supply is quickly becoming implausible – and could soon extend to Iran

Source: The Conversation – Global Perspectives – By Linggong Kong, Ph.D. Candidate in Political Science, Auburn University

Could longtime allies have a closer relationship than meets the eye? Thomas Peter/Pool Photo via AP

China has long maintained that it does not supply arms to any party at war – a central tenet of its “noninterference” foreign policy. But in recent years, Beijing has repeatedly faced accusations of doing the opposite: providing direct military assistance to nations engaged in conflict, while publicly denying doing so and even adopting a position of diplomatic neutrality.

That has seemingly been the case for two of China’s closest allies: Russia in its war against Ukraine and Pakistan during its recent armed standoff with India in May.

Now, Beijing is facing scrutiny over alleged military links to Iran – a country engaged in a long-running shadow conflict with Israel that recently tipped into a short-lived hot war.

After the ceasefire that followed the 12-day war in the Middle East, China reportedly supplied batteries for surface-to-air missiles to Iran in exchange for oil. Such parts are a critical military need for Tehran after its air defense network was severely damaged by Israeli missiles.

The Chinese Embassy in Israel denied the reports, stating that China firmly opposes the proliferation of weapons of mass destruction and does not export arms to countries at war. But China’s Ministry of Foreign Affairs has yet to issue an official statement on the alleged transfer.

As an expert specializing in China’s grand strategy, I think it is highly possible that China would offer Iran military support while denying it publicly. Such plausible deniability would allow Beijing to assert military influence and showcase some of its hardware, while deflecting international criticism and preserving diplomatic flexibility.

But the tactic works only so far. As indirect evidence accumulates, as many suggest it is, such covert action may gradually develop into an open secret – leading to what scholars term “implausible deniability,” where denial is no longer credible even if it is still officially maintained.

An air-to-air missile on display at the 15th China International Aviation and Aerospace Exhibition in November 2024.
Shen Ling/VCG via Getty Images

China’s support for Russia’s war

Although Beijing has consistently said it is neutral in the Russia-Ukraine war that broke out in 2022, China has, in practice, quietly supported Russia. In part, that is because China shares the same strategic goal of challenging the Western-led international order.

Recently, Chinese Foreign Minister Wang Yi reportedly told European Union foreign policy chief Kaja Kallas that Beijing cannot afford to see Russia lose the war in Ukraine. He was said to have warned that a Russian defeat would likely bring the full force of U.S. strategic pressure to bear on China.

From Beijing’s perspective, Moscow plays a vital role in keeping the West preoccupied, offering China valuable strategic breathing room by diverting American attention and resources away from the Asia-Pacific region.

Beyond deepening trade relations that have become a lifeline for Moscow’s economy under Western sanctions, China has reportedly supplied Russia with large quantities of dual-use goods – goods that can be used for civilian and military purposes – to enhance both Moscow’s offensive and defensive capabilities, as well as to boost China’s military-industrial production. Beijing has also allegedly provided satellite imagery to assist Russia on the battlefield.

While the U.S. and Europe have repeatedly tried to call out China for aiding Russia militarily, Beijing has consistently denied such claims.

Most recently, on April 18, 2025, Ukraine formally accused China of directly supporting Russia and slapped sanctions on three Chinese-based firms that Kyiv said was involved in weapons production for the Russian war effort.

In what has become a common refrain, China’s Foreign Ministry rejected the Ukrainian accusation, reaffirming that China has never provided lethal weapons to any party in the conflict and reiterating its official stance of promoting a ceasefire and peace negotiations.

A Chinese Foreign Ministry spokesperson gestures for questions during a daily briefing in Beijing in 2020.
AP Photo/Ng Han Guan

China’s quiet backing of Pakistan

Beijing has long presented itself as a neutral party in the India-Pakistan conflict, too, and has called for restraint on both sides and urged peaceful dialogue.

But in practice, China is allied with Pakistan. And the direct military support it has provided to Lahore appears driven by China’s desire to curb India’s regional influence, counterbalance the growing U.S.–India strategic partnership and protect the China–Pakistan Economic Corridor, a massive bilateral infrastructure project.

In the latest flare-up between India and Pakistan in May, Pakistan deployed Chinese-made J-10C fighter jets in combat for the first time, reportedly downing five Indian aircraft.

Pakistan’s air defense relied heavily on Chinese equipment during the short conflict, deploying Chinese-made surface-to-air missile systems, air-to-air missiles, advanced radar systems and drones for reconnaissance and strike operations. Overall, more than 80% of Pakistan’s military imports have come from China in the past five years.

In what would be a far more stark example of military support if proven true, the deputy chief of India’s army alleged that China had provided Pakistan with real-time intelligence on Indian troop movements during the conflict.

When asked to respond, a spokesperson for China’s Ministry of Foreign Affairs said they had no knowledge of the matter. They reaffirmed that China’s ties with Pakistan are not directed against any third party and reiterated Beijing’s long-standing position in favor of a peaceful resolution to any India–Pakistan dispute.

Extending ‘deniability’ to Iran?

Like with Russia and Pakistan, Iran has increasingly been seen as a partner to China.

In 2021, China and Iran signed a 25-year, US$400 billion comprehensive cooperation agreement that covered trade, energy and security, signaling the depth of their strategic relationship.

The accord was indicative of the strategic value Beijing places on Iran. From Beijing’s perspective, Tehran presents a counterbalance to the influence of the U.S. and its allies – especially Israel and Saudi Arabia – in the region and helps divert Western resources and attention away from China.

But recently, Tehran’s position in the region has become far weaker. Not only has its air defense infrastructure suffered badly in the confrontations with Israel, but its regional proxies and allies – Hamas, Hezbollah and the Assad regime in Syria – have either been devastated by Israel or collapsed altogether.

Smoke rises over Tehran, Iran, following an Israeli strike on June 23, 2025.
Nikan/Middle East Images/AFP via Getty Images

Under these circumstances, it is strategically compelling for Beijing to provide support to Tehran in order to maintain regime stability.

Indeed, Beijing has frequently circumvented sanctions on Iranian energy, with an estimated 90% of Iran’s oil exports still going to China.

Although Beijing did not extend any substantive support to Iran during the 12-day war, reports have abounded since that Iran is looking to China as an alternative supplier of its defense needs. The thinking here is that Russia, Tehran’s traditional military partner, is no longer able to provide sufficient, quality defense equipment to Iran. Some influential social media posters in China have gone as far as advocating for direct military sales by Beijing.

If China does do this, I believe it is likely to follow the same playbook it has used elsewhere by denying involvement publicly while covertly providing assistance.

Doing so allows China to maintain diplomatic ties with Iran’s regional rivals, such as Israel and Saudi Arabia, while simultaneously benefiting from a turbulent Middle East that distracts Washington and grants Beijing strategic breathing room.

China’s use of plausible deniability reflects a broader strategic ambition. Namely, it wants to assert influence in key regional conflicts without triggering open backlash. By quietly supporting partners while maintaining a facade of neutrality, Beijing aims to undermine Western dominance, stretch U.S. strategic focus and secure its own interests – and all while avoiding the risks and responsibilities of open military alignment.

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

– ref. Beijing’s ‘plausible deniability’ on arms supply is quickly becoming implausible – and could soon extend to Iran – https://theconversation.com/beijings-plausible-deniability-on-arms-supply-is-quickly-becoming-implausible-and-could-soon-extend-to-iran-261148

MIL OSI Analysis –

July 25, 2025

MIL-OSI Asia-Pac: Eighth Joint Conference on Advancing Hong Kong’s Full Participation in and Contribution to Belt and Road Initiative held in Beijing (with photos)

Source: Hong Kong Government special administrative region – 4

     The Government of the Hong Kong Special Administrative Region (HKSAR), the National Development and Reform Commission (NDRC) and relevant central ministries held the eighth Joint Conference on Advancing Hong Kong’s Full Participation in and Contribution to the Belt and Road Initiative (B&RI) in Beijing today (July 25).

     Vice Chairman of the NDRC Mr Zhou Haibing attended the conference with Mainland officials led by him, including representatives from the NDRC, the Hong Kong and Macao Work Office of the Communist Party of China Central Committee, the Hong Kong and Macao Affairs Office of the State Council, the Supreme People’s Court, the Ministry of Foreign Affairs, the Ministry of Science and Technology, the Ministry of Justice, the Ministry of Commerce, the Ministry of Transport, the People’s Bank of China, the State-owned Assets Supervision and Administration Commission of the State Council, the National Financial Regulatory Administration, and the Liaison Office of the Central People’s Government in the HKSAR.

     The Secretary for Justice, Mr Paul Lam, SC, in his capacity as chairperson of the Working Group on Belt and Road (B&R) Development under the Steering Group on Integration into National Development, led HKSAR Government officials to attend the conference. They included the Secretary for Commerce and Economic Development, Mr Algernon Yau, who was also the Hong Kong-side Convenor of the Joint Conference, and representatives from the Commerce and Economic Development Bureau (CEDB), the Department of Justice, the Financial Services and the Treasury Bureau, the Innovation, Technology and Industry Bureau, the Development Bureau, the Environment and Ecology Bureau, the Belt and Road Office of the CEDB, and the Office of the Government of the HKSAR in Beijing. The Chairman of the Hong Kong Trade Development Council, Professor Frederick Ma, and a representative from the Airport Authority Hong Kong also attended the meeting.

     Mr Lam said that the HKSAR Government has been taking forward B&R co-operation to go deeper and deliver outcomes, thereby fully participating in and contributing to the B&RI under the continued guidance of the eight major steps the country has been taking to support high-quality B&R co-operation, with a view to facilitating Hong Kong’s active integration into overall national development. With the country’s support, Hong Kong will continue to deepen international exchanges and co-operation and will actively utilise its own advantages to exert a greater role in the country’s high-level opening up to the world.

     He pointed out that over the past year, the HKSAR Government has actively served as a proponent for institutional openness through Hong Kong’s strengths as a platform for two-way opening up; a pioneer for co-operation in new fields through strengths in education, science and technology and talent; and a facilitator for people-to-people bonds through strengths as a melting pot of diversified cultures. The HKSAR Government has been exploring emerging markets such as the Middle East, the Association of Southeast Asian Nations and other B&R countries, while making full use of Hong Kong’s professional services aligned with international standards, thereby building Hong Kong as the gateway between the country and the world and highlighting Hong Kong’s role as the premier B&R functional platform. He expressed gratitude to the Central Government for the staunch support of hosting the International Organization for Mediation headquarters in Hong Kong, which will help strengthen Hong Kong’s roles as an international dispute resolution services centre and a capital for international mediation.

     Mr Yau stated in the meeting that the HKSAR Government will fully capitalise on the 10th Belt and Road Summit to showcase Hong Kong’s important roles as an active participant and the premier B&R functional platform to the Mainland and overseas. He reported on Hong Kong’s progress in carrying out B&R work, including the CEDB’s ongoing pursuit of the early accession of Hong Kong to the Regional Comprehensive Economic Partnership, the pursuit of early conclusion of ongoing negotiations for free trade and investment agreements, and actively following up on the plan to establish Economic and Trade Offices in Kuala Lumpur, Malaysia and Riyadh, Saudi Arabia, to fully take forward the economic and trade relations between Hong Kong and B&R countries.

     The meeting also focused its discussion on the seven work proposals on further promoting the B&RI that the HKSAR Government put forward for consideration by central ministries, covering capacity building, deepening exchanges and co-operations with B&R countries, legal and dispute resolution services, cross-boundary financing, and the expansion of international co-operation and ties in innovation and technology. Representatives of relevant Joint Conference Mainland ministries introduced their respective work in supporting Hong Kong’s participation in and contribution to the B&RI and provided feedback on the HKSAR Government’s work proposals. The HKSAR Government is grateful for the support expressed by relevant central ministries at the meeting on various work proposals and will actively follow up with them.

     In addition, the meeting noted the HKSAR Government’s key areas and major work in its future participation and contribution to the B&RI, including leveraging Hong Kong’s role as a B&R functional platform to explore business opportunities and facilitating business matching and participation in B&R projects. The HKSAR Government will continue to consolidate Hong Kong’s unique advantage of connecting with the Mainland and the rest of the world under “one country, two systems”, seize the enormous opportunities brought about by national development, strengthen and deepen exchanges and co-operations with B&R countries, and give full play to its role as a “super connector” and “super value-adder”.

     The Arrangement between the NDRC and the HKSAR Government for Advancing Hong Kong’s Full Participation in and Contribution to the B&RI, signed between the HKSAR Government and the NDRC in 2017, provides the direction and a blueprint for Hong Kong’s full participation in and contribution to the B&RI, as well as sets up the Joint Conference mechanism to discuss relevant matters, with meetings convened at least once a year.

MIL OSI Asia Pacific News –

July 25, 2025

MIL-OSI: HTX Hot Listings Weekly Recap (July 15 – 21): Ethereum Leads the Rally as Market Trends Ignite Wealth Effect

Source: GlobeNewswire (MIL-OSI)

HTX Hot Listings Weekly Recap

PANAMA CITY, July 25, 2025 (GLOBE NEWSWIRE) — HTX, a leading global crypto exchange, recorded robust performance from its newly listed and featured assets during the third week of July. The period was characterized by an intensified rotation of trending narratives across the crypto market, with capital increasingly shifting from established mainstream assets to promising emerging tokens and high-potential sectors.

Ethereum ($ETH) once again stood out as the “hottest mainstream asset”, gaining an impressive 23% and reinforcing its appeal as a core market anchor. This consistent performance positions ETH as a primary allocation target for capital seeking both safety and stable growth. The escalating ETH 2.0 staking yields, the flourishing Layer 2 ecosystem, and sustained institutional accumulation continue to solidify ETH’s status as a core asset for substantial investments.

Crucially, HTX’s strategic selection of key new listings proved highly effective, with several tokens across categories such as Meme, NFT, DeFi, Social, and Infrastructure more than doubling in value within a single week. Below is a highlight of the week’s top performers:

Emerging Assets Fuel Gains, Boosting the Wealth Effect

Ani Grok Companion ($ANI): Crowned the week’s top gainer with a staggering 137% increase in just seven days. This AI+Meme project blends the “gooning” meme with xAI and Elon Musk’s Grok image, combining AI trends with community-driven content creation. Driven by organic community buzz, innovative gameplay, and short-term trading opportunities, ANI was one of the platform’s fastest-growing tokens by trading volume.
Elixir ($ELX): Signaled a strong resurgence of DeFi narratives, posting an impressive 115% weekly gain. Elixir is a blockchain project dedicated to advancing DeFi and liquidity solutions. With a TVL exceeding $300 million, Elixir has also introduced deUSD, a synthetic USD stablecoin that maintains stability via a “Delta Neutral Strategy” and generates returns through funding rates.
Decentralized Information Asset ($DIA): This on-chain infrastructure token also saw a 115% gain over the week. $DIA is a decentralized oracle platform that delivers reliable data feeds for DeFi and other blockchain applications. Its primary function is to provide on-chain and off-chain market data, price feeds, and oracle services. DIA’s positive price momentum was supported by increased Web3 development activity and rising expectations of application-layer adoption.
Pudgy Penguins ($PENGU): Following last week’s surge in NFT concept assets, PENGU maintained robust performance this week with a 111% gain. The Pudgy Penguins NFT collection features 8,888 unique penguin avatars known for their strong IP attributes and deeply engaged community. PENGU’s rise reflects renewed enthusiasm and potential in the NFT sector during the current cycle.

Infrastructure and Public Chain Sectors Rotate Actively with Layer 1 Market Heating Up

A notable structural rotation took place this week in the Layer 1 sector, with several key tokens experiencing sharp upward moves.

Conflux ($CFX): Rose 104% over the week. Conflux operates as a public Layer 1 blockchain, designed to power dApps, e-commerce, and Web 3.0 infrastructure by offering superior scalability, decentralization, and security compared to existing protocols. $CFX performed exceptionally well, driven by increased on-chain activity in Asia and the rollout of ecosystem support programs.
Tezos ($XTZ): Gained 62% this week. As a veteran Layer1 project, Tezos identified governance deficiencies in blockchain networks as early as 2014 and pioneered on-chain governance solutions. Tezos empowers token holders to determine the network’s upgrade roadmap and priorities, effectively resolving disputes and bypassing the need for disruptive network hard forks. Recent upgrades have further propelled its ecosystem expansion, and it has also garnered pilot adoption by several institutional entities.
Litecoin ($LTC): Increased 22% weekly. Litecoin’s adoption as a payment method has grown over the years, widely accepted by various merchants and organizations, including the American Red Cross, Newegg, and Twitch. Beyond its consistent price stability, its growing integration with traditional financial concepts has attracted considerable market attention. Recently, LTC was designated as one of the initial assets linked to a “crypto stock fund” launched by a major U.S. brokerage, endowing it with new “crypto ETF-like” attributes.

HTX Hot Token Listing Winners

About HTX

Founded in 2013, HTX has evolved from a virtual asset exchange into a comprehensive ecosystem of blockchain businesses that span digital asset trading, financial derivatives, research, investments, incubation, and other businesses.

As a world-leading gateway to Web3, HTX harbors global capabilities that enable it to provide users with safe and reliable services. Adhering to the growth strategy of “Global Expansion, Thriving Ecosystem, Wealth Effect, Security & Compliance,” HTX is dedicated to providing quality services and values to virtual asset enthusiasts worldwide.

To learn more about HTX, please visit https://www.htx.com/ or HTX Square , and follow HTX on X, Telegram, and Discord. For further inquiries, please contact glo-media@htx-inc.com.

Disclaimer: This content is provided by HTX. The statements, views, and opinions expressed in this content are solely those of the content provider and do not necessarily reflect the views of this media platform or its publisher. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. We do not guarantee any claims, statements, or promises made in this article. This content is for informational purposes only and should not be considered financial, investment, or trading advice. Investing in crypto and mining-related opportunities involves significant risks, including the potential loss of capital. It is possible to lose all your capital. These products may not be suitable for everyone, and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. Neither the media platform nor the publisher shall be held responsible for any fraudulent activities, misrepresentations, or financial losses arising from the content of this press release. In the event of any legal claims or charges against this article, we accept no liability or responsibility. Globenewswire does not endorse any content on this page.

Legal Disclaimer: This media platform provides the content of this article on an “as-is” basis, without any warranties or representations of any kind, express or implied. We assume no responsibility for any inaccuracies, errors, or omissions. We do not assume any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information presented herein. Any concerns, complaints, or copyright issues related to this article should be directed to the content provider mentioned above.

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/bffad256-800a-488c-afb6-f8158fc13554

https://www.globenewswire.com/NewsRoom/AttachmentNg/5696437e-b9f3-4a34-907f-0e05c36de15e

The MIL Network –

July 25, 2025

MIL-OSI: HTX Hot Listings Weekly Recap (July 15 – 21): Ethereum Leads the Rally as Market Trends Ignite Wealth Effect

Source: GlobeNewswire (MIL-OSI)

HTX Hot Listings Weekly Recap

PANAMA CITY, July 25, 2025 (GLOBE NEWSWIRE) — HTX, a leading global crypto exchange, recorded robust performance from its newly listed and featured assets during the third week of July. The period was characterized by an intensified rotation of trending narratives across the crypto market, with capital increasingly shifting from established mainstream assets to promising emerging tokens and high-potential sectors.

Ethereum ($ETH) once again stood out as the “hottest mainstream asset”, gaining an impressive 23% and reinforcing its appeal as a core market anchor. This consistent performance positions ETH as a primary allocation target for capital seeking both safety and stable growth. The escalating ETH 2.0 staking yields, the flourishing Layer 2 ecosystem, and sustained institutional accumulation continue to solidify ETH’s status as a core asset for substantial investments.

Crucially, HTX’s strategic selection of key new listings proved highly effective, with several tokens across categories such as Meme, NFT, DeFi, Social, and Infrastructure more than doubling in value within a single week. Below is a highlight of the week’s top performers:

Emerging Assets Fuel Gains, Boosting the Wealth Effect

Ani Grok Companion ($ANI): Crowned the week’s top gainer with a staggering 137% increase in just seven days. This AI+Meme project blends the “gooning” meme with xAI and Elon Musk’s Grok image, combining AI trends with community-driven content creation. Driven by organic community buzz, innovative gameplay, and short-term trading opportunities, ANI was one of the platform’s fastest-growing tokens by trading volume.
Elixir ($ELX): Signaled a strong resurgence of DeFi narratives, posting an impressive 115% weekly gain. Elixir is a blockchain project dedicated to advancing DeFi and liquidity solutions. With a TVL exceeding $300 million, Elixir has also introduced deUSD, a synthetic USD stablecoin that maintains stability via a “Delta Neutral Strategy” and generates returns through funding rates.
Decentralized Information Asset ($DIA): This on-chain infrastructure token also saw a 115% gain over the week. $DIA is a decentralized oracle platform that delivers reliable data feeds for DeFi and other blockchain applications. Its primary function is to provide on-chain and off-chain market data, price feeds, and oracle services. DIA’s positive price momentum was supported by increased Web3 development activity and rising expectations of application-layer adoption.
Pudgy Penguins ($PENGU): Following last week’s surge in NFT concept assets, PENGU maintained robust performance this week with a 111% gain. The Pudgy Penguins NFT collection features 8,888 unique penguin avatars known for their strong IP attributes and deeply engaged community. PENGU’s rise reflects renewed enthusiasm and potential in the NFT sector during the current cycle.

Infrastructure and Public Chain Sectors Rotate Actively with Layer 1 Market Heating Up

A notable structural rotation took place this week in the Layer 1 sector, with several key tokens experiencing sharp upward moves.

Conflux ($CFX): Rose 104% over the week. Conflux operates as a public Layer 1 blockchain, designed to power dApps, e-commerce, and Web 3.0 infrastructure by offering superior scalability, decentralization, and security compared to existing protocols. $CFX performed exceptionally well, driven by increased on-chain activity in Asia and the rollout of ecosystem support programs.
Tezos ($XTZ): Gained 62% this week. As a veteran Layer1 project, Tezos identified governance deficiencies in blockchain networks as early as 2014 and pioneered on-chain governance solutions. Tezos empowers token holders to determine the network’s upgrade roadmap and priorities, effectively resolving disputes and bypassing the need for disruptive network hard forks. Recent upgrades have further propelled its ecosystem expansion, and it has also garnered pilot adoption by several institutional entities.
Litecoin ($LTC): Increased 22% weekly. Litecoin’s adoption as a payment method has grown over the years, widely accepted by various merchants and organizations, including the American Red Cross, Newegg, and Twitch. Beyond its consistent price stability, its growing integration with traditional financial concepts has attracted considerable market attention. Recently, LTC was designated as one of the initial assets linked to a “crypto stock fund” launched by a major U.S. brokerage, endowing it with new “crypto ETF-like” attributes.

HTX Hot Token Listing Winners

About HTX

Founded in 2013, HTX has evolved from a virtual asset exchange into a comprehensive ecosystem of blockchain businesses that span digital asset trading, financial derivatives, research, investments, incubation, and other businesses.

As a world-leading gateway to Web3, HTX harbors global capabilities that enable it to provide users with safe and reliable services. Adhering to the growth strategy of “Global Expansion, Thriving Ecosystem, Wealth Effect, Security & Compliance,” HTX is dedicated to providing quality services and values to virtual asset enthusiasts worldwide.

To learn more about HTX, please visit https://www.htx.com/ or HTX Square , and follow HTX on X, Telegram, and Discord. For further inquiries, please contact glo-media@htx-inc.com.

Disclaimer: This content is provided by HTX. The statements, views, and opinions expressed in this content are solely those of the content provider and do not necessarily reflect the views of this media platform or its publisher. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. We do not guarantee any claims, statements, or promises made in this article. This content is for informational purposes only and should not be considered financial, investment, or trading advice. Investing in crypto and mining-related opportunities involves significant risks, including the potential loss of capital. It is possible to lose all your capital. These products may not be suitable for everyone, and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. Neither the media platform nor the publisher shall be held responsible for any fraudulent activities, misrepresentations, or financial losses arising from the content of this press release. In the event of any legal claims or charges against this article, we accept no liability or responsibility. Globenewswire does not endorse any content on this page.

Legal Disclaimer: This media platform provides the content of this article on an “as-is” basis, without any warranties or representations of any kind, express or implied. We assume no responsibility for any inaccuracies, errors, or omissions. We do not assume any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information presented herein. Any concerns, complaints, or copyright issues related to this article should be directed to the content provider mentioned above.

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/bffad256-800a-488c-afb6-f8158fc13554

https://www.globenewswire.com/NewsRoom/AttachmentNg/5696437e-b9f3-4a34-907f-0e05c36de15e

The MIL Network –

July 25, 2025

MIL-OSI: Ambow Launches HybriU Global Learning Network, Connecting U.S. Universities with Students Worldwide

Source: GlobeNewswire (MIL-OSI)

New Phygital Infrastructure Empowers U.S. Universities to Expand Globally Through AI-powered Hybrid Classrooms

CUPERTINO, Calif., July 25, 2025 (GLOBE NEWSWIRE) — Ambow Education Holding Ltd. (NYSE American: AMBO), a U.S.-based innovator of AI-powered phygital (physical + digital) solutions for education, corporate collaboration and live events, today announced the launch of its HybriU Global Learning Network (HGLN), a two-pronged initiative designed to help U.S. universities scale international enrollment and deliver immersive, borderless education.

Ambow’s HGLN initiative integrates two core components: the HybriU University Alliance and a network of HybriU Global Learning Centers. Together, these form a comprehensive system that allows U.S. institutions to extend in-person classroom experiences to international students while providing localized academic and enrollment support to preserve the quality and rigor of individual institutions’ on-campus instruction.

Through the HybriU University Alliance, U.S. universities can enroll international students who can begin earning credit immediately, without requiring travel or visas, by using Ambow’s HybriU phygital (physical + digital) learning platform. This next-generation system delivers an immersive remote classroom experience that bridges the gap between in-person and online instruction. Students engage in real-time with U.S. faculty through AI-powered digital classrooms featuring live instruction, adaptive learning tools, immersive 3D environments, and automatic real-time translation.

HybriU Global Learning Centers support the University Alliance with tech-enabled international hubs. On-site teams staff each center, providing hybrid learning support, academic services, and regional enrollment infrastructure. These centers help universities maintain visibility and continuity across borders while extending their global reach.

“The future of education is one without boundaries—no boundaries between online and on-site, no boundaries between languages and regions, no boundaries between academia and industry,” said Dr. Jin Huang, CEO of Ambow Education. “Why should students keep chasing campuses when campuses can reach students anywhere? Why let visas, geography or cost block access to world-class education? HybriU and our HGLN initiative are changing the face of global education. We’re redefining what international learning looks like––it’s flexible, inclusive and built to scale. We envision a world where every university has a teaching presence wherever its students are. HGLN offers a future-ready model for global enrollment that institutions need to lead in the next era of education.”

As part of Ambow’s long-term vision, HGLN aims to create a truly global learning ecosystem—seamlessly linking students, universities and regional hubs through the HybriU platform to unlock worldwide access to higher education. By removing physical and bureaucratic barriers to international learning, HGLN enables universities to preserve growth momentum, deepen global collaboration and reach students in new and accessible ways.

The HGLN’s partner-driven model enables universities to scale globally without building new infrastructure. Institutions can license the HybriU platform or enter revenue-sharing partnerships, while Ambow’s regional operators handle implementation and on-ground support. Initial HybriU Global Learning Centers are being established in Singapore and China, key strategic regions for U.S. higher education growth.

Ambow invites accredited U.S. universities to join its HybriU University Alliance and establish a presence through its Global Learning Center network. HGLN is built to scale, with local support teams, shared infrastructure and a growing footprint across Asia and beyond.

If your institution is interested in joining the HybriU University Alliance to expand international enrollment and global reach, we invite you to contact us at UPartner@HybriU.com .

For global organizations exploring partnership opportunities to establish a HybriU Global Learning Center, we welcome your inquiries at GLC@HybriU.com.

To learn more about HybriU, please visit www.HybriU.com.

About Ambow

Ambow Education Holding Ltd. is a U.S.-based, AI-driven technology company offering phygital (physical + digital) solutions for education, corporate conferencing and live events. Through its flagship platform, HybriU, Ambow is shaping the future of learning, collaboration and communication—delivering immersive, intelligent, real-time experiences across industries. For more information, visit Ambow’s corporate website at https://www.ambow.com/.

Follow us on X: @Ambow_Education
Follow us on LinkedIn: Ambow-education-group

Safe Harbor Statement

This press release contains statements of a forward-looking nature. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by terminology such as “will,” “expects,” “believes,” “anticipates,” “intends,” “estimates” and similar statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about Ambow and the industry. All information provided in this press release is as of the date hereof, and Ambow undertakes no obligation to update any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although Ambow believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that its expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.

For more information, please contact:

Ambow Education Holding Ltd.
E-mail: ir@ambow.com
or
Piacente Financial Communications
Tel: +1 212 481 2050
E-mail: ambow@tpg-ir.com