MIL-OSI New Zealand: Brisbane’s Olympic Boom: Why Thousands of Kiwis Are Making the Move to the Sunshine State

Source: Robert Walters

Migration Surge: 42% of New Zealanders are planning to move to Australia, with Brisbane a top destination.
Key Motivators for Relocation: Better salaries (48%), improved job prospects (22%), and more affordable living (13%).
Brisbane’s Growth: The city was voted Australia’s happiest city in 2024 and is already one of the fastest-growing urban centres in the country.
Queensland’s Competitive Advantage: More affordable living compared to Sydney and Melbourne, making it attractive for skilled workers.
Business Recruitment Efforts: Companies are accelerating hiring and offering competitive salaries, relocation assistance, and flexible work policies to attract talent.
Economic Transformation: The 2032 Olympics are positioning Brisbane as a major employment hub.

With the 2032 Olympics on the horizon, Brisbane is gearing up for an economic and employment surge that’s already attracting thousands of skilled workers – including a growing number of New Zealanders.

Recent research from global recruitment firm Robert Walters reveals that 42% of New Zealanders are considering relocating to Australia in the next 12 months, with Brisbane emerging as a top destination over traditional hotspots like Sydney and Melbourne due to more affordable living.

With tens of thousands of jobs expected to be created in the lead-up to the Games, Kiwis looking for better salaries, career opportunities, and a lower cost of living are increasingly turning their sights to Queensland’s capital.

Why Kiwis Are Choosing Brisbane

New Zealanders have long been drawn to Australia for work, but the 2032 Olympics are accelerating this trend. Brisbane offers key advantages over other major cities, including:

Job Creation: The Games are expected to generate over 91,600 jobs across construction, infrastructure, tourism, hospitality, and event management.

Higher Salaries: Better pay remains the number one reason for relocation, with 48% of job seekers prioritising increased earnings when considering a move.

Affordable Living: Brisbane’s cost of living is significantly lower than in Sydney or Melbourne, making it an attractive choice for professionals and families heading to Australia.

Lifestyle Benefits: Voted Australia’s happiest city in 2024, Brisbane offers great weather, outdoor activities, and a strong sense of community.

Brisbane’s Growing Appeal for Kiwi Talent

According to Robert Walters, businesses across Queensland are ramping up hiring efforts, offering competitive salaries, relocation assistance, and flexible work policies to secure top talent.

Jane Lowney, Senior Director at Robert Walters Queensland, says, “Brisbane is at the centre of a once-in-a-generation economic transformation. We’re already seeing a surge in demand for skilled workers, and this is just the beginning. Now is the perfect time for New Zealand professionals to consider making the move.”

New Zealand is currently experiencing record-high migration departures, with Stats NZ reporting 122,800 departures in the year to January 2025 – the highest annual figure on record. While Kiwis have traditionally favoured Sydney and Melbourne, Brisbane is now emerging as a strong alternative due to its job opportunities and affordability.

Whilst there has historically been a trend of New Zealanders moving to Australia, they have often favoured cities like Sydney and Melbourne. However, Robert Walters has observed an increasing number opting for Brisbane.

“We’re seeing more Kiwis than usual seeking work specifically in Brisbane and we do have the jobs for them due to the Olympics. The cost of living and amount of job opportunities is a big pull for them.” Lowney added.

How to Make the Move

For New Zealanders considering relocation, now is the time to explore opportunities in Brisbane. With increasing demand for skilled workers, businesses are actively seeking talent from across the Tasman and are offering relocation incentives to attract the right candidates.

“The 2032 Olympics are a game-changer for Brisbane’s job market,” says Lowney. “For Kiwis thinking about moving, this presents a rare chance to secure career growth in a thriving, dynamic city.”

With Queensland’s economy set to soar, Brisbane is positioning itself as the ultimate destination for professionals looking to advance their careers while enjoying an enviable lifestyle. You can utilise recruitment companies to make the move.

MIL OSI New Zealand News –

April 29, 2025

MIL-Evening Report: 1 billion years ago, a meteorite struck Scotland and influenced life on Earth

Source: The Conversation (Au and NZ) – By Chris Kirkland, Professor of Geochronology, Curtin University

Stoer Head lighthouse, Scotland. William Gale/Shutterstock

We’ve discovered that a meteorite struck northwest Scotland 1 billion years ago, 200 million years later than previously thought. Our results are published today in the journal Geology.

This impact now aligns with some of Earth’s earliest known, land based, non-marine microbial fossils, and offers new insights into how meteorite strikes may have shaped our planet’s environment and life.

A rocky treasure trove

The Torridonian rocks of northwest Scotland are treasured by geologists as some of the finest archives of the ancient lakes and river systems that existed a billion years ago.

Those water bodies were home to microbial ecosystems consisting of eukaryotes. Eukaryotes are single-celled organisms with complex internal structures that are the ancestors of all plants and animals.

But the Torridonian environments and their associated microbial communities were dramatically disrupted when a meteor slammed into the planet.

A drone’s-eye view of the Stac Fada Member reveals towering blocks of sandstone preserving a meteorite impact frozen in time. Look closely and you’ll spot figures for scale, dwarfed by the chaotic jumble of rock fragments encased in impact-smashed debris.
Tony Prave

The record of this event is preserved in a geological unit known as the Stac Fada Member. It is comprised of unusual layers of rock fragments broken and melted by the impact.

Also, crucially, there are shock-altered minerals that closely resemble those found in famous impact sites such as Chicxulub (Mexico) and Sudbury (Canada).

In the case of the Stac Fada, these minerals were engulfed in high-energy, ground-hugging flows of smashed rock triggered by the impact that spread across the ancient landscape.

What is exciting about our new date for the Stac Fada impact is that it now overlaps in age with microfossils preserved elsewhere in the Torridonian rocks.

This raises some interesting questions. For example, how did the meteorite strike influence the environmental conditions those early non-marine microbial ecosystems relied on?

Finding out the date

Determining when a meteorite struck is no easy task.

We can use minerals to constrain the age, but they have to be the right kind. In this case it means something that wasn’t overly altered by the intense heat, pressure and fluids generated by the impact, yet robust enough to survive the ravages of deep geological time.

Suitable minerals are extremely rare, but we found a few in the Stac Fada rocks. One was reidite, a mineral that only forms under extreme pressure. The other was granular zircon, a uranium-bearing mineral formed by immense impact temperatures.

Electron microscope image of a shocked zircon: blue is granular zircon, red is reidite formed under extreme pressure from a meteorite impact.
Timmons Erickson

These minerals are, in effect, tiny stopwatches whose clocks start “ticking” at the time they form. Although these clocks are often damaged during the impact and the ensuing pulse of heat, we used mathematical modelling to determine the most probable time of impact.

Together, these techniques consistently pointed to an event 1 billion years old, not 1.2 billion years old as previously suggested. Given such vast spans of time, a 20% change in age might not seem dramatic.

However, the new age shows the timing of the impact coincides with early non-marine eukaryotic fossils. It also lines up with a major mountain-building event. This means the Torridonian lifeforms had to cope with significant, environment-altering phenomena.

Why this is important for you, me, and life in general

The origin of life is a deeply complex process that likely began with a series of pre-biotic chemical reactions.

While much remains unknown, it is intriguing that two ancient meteorite impacts, the 3.5-billion-year-old North Pole impact in Western Australia and now the 1-billion-year-old Stac Fada deposit in northwest Scotland, occur close in time to major milestones in the fossil record.

The North Pole impact occurs in a sequence of rocks containing stromatolites, some of the oldest-known fossils considered to be indicative of microbial life.

These rippled layers in the Torridon rocks were built by ancient microbial communities, evidence of some of the earliest life on land.
Tony Prave

All life requires energy. The earliest forms of life are thought to be associated with volcanic hydrothermal springs. Impacts offer a plausible alternative. The immediate aftermath of a meteorite strike is extreme and hostile, and would ruin your day. But the long-term effects could support key biological processes.

Meteorite strikes fracture rocks, generate long-lived hydrothermal systems and form crater lakes that enable the concentration of important ingredients for life, such as clays, organic molecules and phosphorus. The latter is a key element for all forms of life.

In Scotland, the Stac Fada impact lies within an ancient river and lake environment that housed microbial ecosystems colonising the land. What makes the Stac Fada impact deposits fascinating is that, unlike most other impacts on Earth, they preserve the environments in which those pioneering organisms lived immediately prior to the impact.

Further, the impact deposits were subsequently buried as non-marine microbial habitats became reestablished. So, the Stac Fada rocks provide an opportunity to see how microbial life recovered from impact.

Extraterrestrial visitors in the form of meteorite collisions may not just have scarred Earth’s surface, but shaped its future, turning catastrophic events into natural crater-cradles of life.

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

– ref. 1 billion years ago, a meteorite struck Scotland and influenced life on Earth – https://theconversation.com/1-billion-years-ago-a-meteorite-struck-scotland-and-influenced-life-on-earth-254285

MIL OSI Analysis – EveningReport.nz –

April 29, 2025

MIL-Evening Report: Major survey finds most people use AI regularly at work – but almost half admit to doing so inappropriately

Source: The Conversation (Au and NZ) – By Nicole Gillespie, Professor of Management; Chair in Trust, Melbourne Business School

Matheus Bertelli/Pexels

Have you ever used ChatGPT to draft a work email? Perhaps to summarise a report, research a topic or analyse data in a spreadsheet? If so, you certainly aren’t alone.

Artificial intelligence (AI) tools are rapidly transforming the world of work. Released today, our global study of more than 32,000 workers from 47 countries shows that 58% of employees intentionally use AI at work – with a third using it weekly or daily.

Most employees who use it say they’ve gained some real productivity and performance benefits from adopting AI tools.

However, a concerning number are using AI in highly risky ways – such as uploading sensitive information into public tools, relying on AI answers without checking them, and hiding their use of it.

There’s an urgent need for policies, training and governance on responsible use of AI, to ensure it enhances – not undermines – how work is done.

Our research

We surveyed 32,352 employees in 47 countries, covering all global geographical regions and occupational groups.

Most employees report performance benefits from AI adoption at work. These include improvements in:

efficiency (67%)
information access (61%)
innovation (59%)
work quality (58%).

These findings echo prior research demonstrating AI can drive productivity gains for employees and organisations.

We found general-purpose generative AI tools, such as ChatGPT, are by far the most widely used. About 70% of employees rely on free, public tools, rather than AI solutions provided by their employer (42%).

However, almost half the employees we surveyed who use AI say they have done so in ways that could be considered inappropriate (47%) and even more (63%) have seen other employees using AI inappropriately.

Most survey respondents use free, public AI tools, such as ChatGPT.
Tada Images/Shutterstock

Sensitive information

One key concern surrounding AI tools in the workplace is the handling of sensitive company information – such as financial, sales or customer information.

Nearly half (48%) of employees have uploaded sensitive company or customer information into public generative AI tools, and 44% admit to having used AI at work in ways that go against organisational policies.

This aligns with other research showing 27% of content put into AI tools by employees is sensitive.

Check your answer

We found complacent use of AI is also widespread, with 66% of respondents saying they have relied on AI output without evaluating it. It is unsurprising then that a majority (56%) have made mistakes in their work due to AI.

Younger employees (aged 18-34 years) are more likely to engage in inappropriate and complacent use than older employees (aged 35 or older).

This carries serious risks for organisations and employees. Such mistakes have already led to well-documented cases of financial loss, reputational damage and privacy breaches.

About a third (35%) of employees say the use of AI tools in their workplace has increased privacy and compliance risks.

‘Shadow’ AI use

When employees aren’t transparent about how they use AI, the risks become even more challenging to manage.

We found most employees have avoided revealing when they use AI (61%), presented AI-generated content as their own (55%), and used AI tools without knowing if it is allowed (66%).

This invisible or “shadow AI” use doesn’t just exacerbate risks – it also severely hampers an organisation’s ability to detect, manage and mitigate risks.

A lack of training, guidance and governance appears to be fuelling this complacent use. Despite their prevalence, only a third of employees (34%) say their organisation has a policy guiding the use of generative AI tools, with 6% saying their organisation bans it.

Pressure to adopt AI may also fuel complacent use, with half of employees fearing they will be left behind if they do not.

Almost half of respondents said they had uploaded company financial, sales or customer information into public AI tools.
Andrey_Popov/Shutterstock

Better literacy and oversight

Collectively, our findings reveal a significant gap in the governance of AI tools and an urgent need for organisations to guide and manage how employees use them in their everyday work. Addressing this will require a proactive and deliberate approach.

Investing in responsible AI training and developing employees’ AI literacy is key. Our modelling shows self-reported AI literacy – including training, knowledge, and efficacy – predicts not only whether employees adopt AI tools but also whether they critically engage with them.

This includes how well they verify the tools’ output, and consider their limitations before making decisions.

Training can improve how people engage with AI tools and critically evaluate their output.
PeopleImages.com – Yuri A/Shutterstock

We found AI literacy is also associated with greater trust in AI use at work and more performance benefits from its use.

Despite this, less than half of employees (47%) report having received AI training or related education.

Organisations also need to put in place clear policies, guidelines and guardrails, systems of accountability and oversight, and data privacy and security measures.

There are many resources to help organisations develop robust AI governance systems and support responsible AI use.

The right culture

On top of this, it’s crucial to create a psychologically safe work environment, where employees feel comfortable to share how and when they are using AI tools.

The benefits of such a culture go beyond better oversight and risk management. It is also central to developing a culture of shared learning and experimentation that supports responsible diffusion of AI use and innovation.

AI has the potential to improve the way we work. But it takes an AI-literate workforce, robust governance and clear guidance, and a culture that supports safe, transparent and accountable use. Without these elements, AI becomes just another unmanaged liability.

This research was supported by the Chair in Trust research partnership between the University of Melbourne and KPMG Australia and funding from KPMG International. The research was conducted independently by Professor Nicole Gillespie and Dr Steve Lockey and their research team at Melbourne Business School, The University of Melbourne, and published in collaboration with KPMG.

– ref. Major survey finds most people use AI regularly at work – but almost half admit to doing so inappropriately – https://theconversation.com/major-survey-finds-most-people-use-ai-regularly-at-work-but-almost-half-admit-to-doing-so-inappropriately-255405

MIL OSI Analysis – EveningReport.nz –

April 29, 2025

MIL-OSI Submissions: African Development Bank signs $3.2 billion Exposure Exchange with Inter-American Development Bank

Source: African Development Bank Group (AfDB)

Since 2015, the African Development Bank has used these agreements to diversify lending within its sovereign portfolio and deploy capital effectively while preserving a resilient financial base.

WASHINGTON D.C., United States of America, April 28, 2025/ — The African Development Bank Group (www.AfDB.org) has signed a $3.2 billion Exposure Exchange Agreement with the Inter-American Development Bank (IADB), renewing a prior agreement originally executed between the two institutions in 2015. The agreement was signed in Washington DC, on the sidelines of the World Bank Group and International Monetary Fund Spring meetings.

This is the fourth exposure exchange undertaken by the African Development Bank with other Multilateral Development Banks, in the continuous pursuit of innovative ways of strengthening the capital adequacy and efficiency of Multilateral Development Banks, as well as boost their development lending capacity.

Since 2015, the African Development Bank has used these agreements to diversify lending within its sovereign portfolio and deploy capital effectively while preserving a resilient financial base. The tool ensures the African Development Bank remains agile, well-capitalized, and committed to innovation in support of development in Africa.

Today’s transaction follows previous successful agreements between the African Development Bank and other Multilateral Development Banks, including the International Bank for Reconstruction and Development and Asian Development Bank.

The African Development Bank President Dr Akinwumi Adesina said, “This transaction underpins the African Development Bank’s forward-looking approach to capital and risk management.”

“We are pleased to continue our positive longstanding collaboration with Inter-American Development Bank in structuring and executing innovative financial solutions to align with the G20’s call for Multilateral Development Banks to work together as a system in expanding development impact to our member countries,” said Adesina.

Inter-American Development Bank President Ilan Goldfajn pointed to the success of the first agreement signed with the African Development Bank ten years ago. He said, “This new agreement marks yet another milestone in our strong and fruitful collaboration with the African Development Bank. Thanks to this operation we’re strengthening the financial resilience, creditworthiness, and financing capacity of both of our institutions. A win-win for all, that will benefit the people of Latin America and the Caribbean and Africa”.

Adesina added that Multilateral Development Banks should do more of such transactions because of their proven success and impact.

MIL OSI – Submitted News –

April 29, 2025

MIL-OSI New Zealand: Govt’s austerity Budget to cause real harm in communities

Source: Green Party

The Government’s Budget looks set to usher in a new age of austerity. This morning, Minister of Finance Nicola Willis said new spending would be limited to $1.4 billion, cut back from the original intended $2.4 billion, which itself was already $100 million below what Treasury said was needed to keep the lights on.

“New Zealanders looking around at the state of global politics and asking how things got so bad have their answer in the kind of slash and burn economics Nicola Willis has promised the country today,” says Green Party co-leader and spokesperson for Finance Chlöe Swarbrick.

“The Government has decided its job isn’t done growing poverty, climate changing emissions and homelessness. They’ve announced they’re going to go harder shredding the services we all rely on, meaning life is set to get harder and more expensive for regular people.

“This is the austerity play book: defund public services to failure, watch them fail, then privatise; take the so-called ‘cost’ off the Government’s books and watch those costs rise for regular people.

“It doesn’t have to be this way. We can reduce the cost of living and climate changing emissions while increasing our quality of life – if we have a Government that cares to actually do these things.

“It’s not inevitable that people’s lives get worse, as the Government seems intent on telling everyone. In a few weeks’ time, the Greens will release our plan for the future entirely within our reach: a Government budget that supports the wellbeing of people and planet, instead of exploiting and exhausting both,” says Chlöe Swarbrick.

MIL OSI New Zealand News –

April 29, 2025

MIL-OSI New Zealand: Mark Cameron drafts bill to stop banking wokery and protect rural borrowers

Source: ACT Party

ACT Rural Communities spokesperson Mark Cameron has drafted a bill to scrap the red tape forcing banks and financial institutions to make climate-related disclosures, by repealing Part 7A of the Financial Markets Conduct Act 2013.

“Rural and regional New Zealanders are being hammered by banking wokery that judges businesses on political fashion rather than commercial sense,” says Mr Cameron.

“Farmers are already seeing discrimination creeping into interest rates based on perceived emissions. They fear they’ll be the next to be ‘debanked’, not because of financial risk, but because they don’t fit the agenda of the suit-and-tie bigwigs. We’ve already seen it happening to essential industries like mining and service stations.

“These rules are the ultimate virtue signal that only ACT opposed back in 2021. They reduce banking competition and force significant costs on lenders – and therefore borrowers – for absolutely no environmental gain.

“This week I wrote to the Minister for Commerce and Consumer Affairs, raising concerns about the harmful impact these regulations have on borrowers, banking competition, and economic growth, and encouraging him to adopt my proposal as a Government Bill.

“The Bill I’ve drafted sends two clear messages to the banks. First, they will no longer win political favour by making ideological lending decisions, and they can be confident that they won’t be punished for sticking to their core role of serving customers. Second, for those banks that have fallen under ideological capture, it’s a signal to get back to basics – or risk losing customers to competitors who understand what banking is really about.

“For government and the regulators of banks, it’s about getting back to basics too. The role of financial regulation is to ensure the sound functioning of financial markets in a way that promotes trust, efficiency, and stability. The climate-disclosure requirements are a departure from this limited function into social engineering.

“It’s also unnecessary. We already have an Emissions Trading Scheme that makes these woke rules completely redundant – emissions are capped and the cost of carbon is already factored into investment and production decisions.

“So while the disclosure requirements haven’t reduced a single gram of global emissions, they do put pressure on the banks by waving a stick at the banks, tacitly saying ‘if we don’t like who you’re lending to we’ll hit you’. That is part of what’s driving this madness and why ACT believes markets, not ministers should decide where investment is directed.

“The answer to woke lending practices is not more red tape, it’s getting rid of the existing stuff that’s causing it in the first place.

“We’ll win the war on banking wokery by letting better ideas and businesses compete against out-of-touch lenders. Piling on additional heavy-handed regulations risks scaring off new entrants to the market, further entrenching the power of the big players. If we want to force their hand, the market is best placed to do it.”

Mark Cameron’s letter to the Minister can be read here.

A copy of the Financial Markets Conduct (Repeal of Climate-related Disclosure Requirements) Amendment Bill can be read here.

The climate-related disclosure requirements were introduced by Labour in 2021 through the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021.

MIL OSI New Zealand News –

April 29, 2025

MIL-OSI United Kingdom: UK researchers access more quantum and space Horizon funding

Source: United Kingdom – Executive Government & Departments 2

Press release

UK researchers access more quantum and space Horizon funding

EU Commissioner visits London as UK researchers and businesses get access to more Horizon Europe funding calls for quantum and space research

Minister for EU Relations today welcomes EU Commissioner Maroš Šefčovič ahead of his first official visit to the United Kingdom.
Visit comes as UK researchers and businesses benefit from wider access to Horizon Europe funding calls for quantum and space research, which will help drive sector and economic growth and deliver our Plan for Change.
New backing from the world’s largest programme of research collaboration, worth c.£80 billion, builds on high-potential tech areas like AI, telecoms and high-performance computing

Minister for EU Relations, Nick Thomas-Symonds, today welcomes EU Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency, Maroš Šefčovič, ahead of his first official visit to the United Kingdom under this government (Tuesday, 29 April 2025).

Commissioner Šefčovič’s visit follows the recent engagement with European Commission President Ursula Von Der Leyen last week, providing a significant opportunity to review the progress of ongoing discussions between the UK and the European Union. This engagement is a key step in the lead-up to the UK-EU Summit scheduled for next month.

This visit comes as UK scientists, researchers and businesses working on the latest innovations in quantum and space technologies have now been given access to more Horizon Europe funding, under the new 2025 Horizon Europe Work Programme published last week (Friday 25 April).

Access to Horizon Europe funding, and the opportunities for international collaboration that Horizon presents, will be an important boost to these two sectors which are at the cutting edge of new opportunities for economic growth, helping to drive the Government’s Plan for Change.

These are technologies that will be instrumental to the future of the economy: quantum computing alone is projected to deliver $5-10 billion of benefits globally over the next 3-5 years, while since 2015 the UK has attracted more private investment in space than any other country outside of the United States.

During his visit in the UK, the European Commissioner for Trade and Economic Security, alongside the Minister for the Cabinet Office, Nick Thomas-Symonds, will meet professors at Imperial College London who have benefited from Horizon funding for their projects.

Minister Nick Thomas-Symonds will co-chair the Withdrawal Agreement Joint Committee with Commissioner Šefčovič, who is also scheduled to meet with the Secretaries of State for the Foreign, Commonwealth and Development Office, the Department for Business and Trade, and the Northern Ireland Office.

Paymaster General and Minister for the Cabinet Office (Minister for the Constitution and European Union Relations), Rt Hon Nick Thomas-Symonds MP, said:

In just under a month, the United Kingdom will host the UK-EU Summit here in London. Today provides an opportunity to take stock of negotiations and the progress made. We are fully aligned in our ambitions to build a safer, more secure, and prosperous future for people across the UK and Europe.

We will always act in the national interest as we work towards a strong and durable strategic partnership with our European partners, unlocking new opportunities for British citizens and businesses.

UK Science Minister Lord Vallance said:

Thanks to this welcome news, the opportunities for British researchers and businesses working in quantum, space, and beyond are only set to grow.

They now have greater access to one of the world’s foremost vehicles for R&D funding, and an even bigger chance to build the international ties which we know are critical to advancing knowledge, tackling the world’s biggest challenges, and delivering the economic growth that is at the heart of this Government’s Plan for Change.

I want innovators up and down the UK to seize the moment that stands before them. Horizon’s doors are open to you, and we have support available to help you. Now is the time to bid for funding, build consortia, and take your work to the next level.

The UK gained access to the vast majority (95%+) of Horizon funding calls, when we associated to the programme in 2024, with some very limited exceptions on some emerging technologies.

Today’s breakthrough comes after a period of constructive collaboration between UK and EU teams and means that more British experts working on space and quantum can now confidently bid for a share of the c.£80 billion that is available through Horizon overall.

They can also build consortia with research partners across Europe, and beyond in Canada, Switzerland, and more. This includes complete access to all Horizon Europe quantum funding calls.

Horizon also offers a huge opportunity to businesses and researchers focusing on other cutting-edge technologies, like AI, telecoms, and high-performance computing, including through access to cutting-edge computing resources through EuroHPC. Recent UK-EU engagement has ensured that the UK retains open access to all calls in these areas.

The Horizon Europe programme is an innovation powerhouse –spending over €380 billion on R&D in 20231 – and fostering deep and high-quality links between the continent’s brightest minds, and the UK’s, will be critical if we are to seize the promise for science and tech innovations to support the Government’s Missions to grow the economy, fix the NHS and improve health outcomes and deliver clean energy under the Plan for Change. Innovative and high-potential sectors like space and quantum will be instrumental to rebuilding the foundations of the economy, and kickstarting growth.

Greater access to Horizon is a win for the UK, given the growing importance of space and quantum to the economy and society. The UK space sector already employs 52,000 people and generates an of £18.9 billion each year.

Meanwhile new innovations in quantum – harnessing the unique properties of subatomic particles to process information and solve problems – are already unlocking breakthroughs in healthcare, logistics, financial services and more. On top of this, experts working in fields like AI, high performance computing, and future telecoms continue to enjoy valuable Horizon access, as well as a vast number of other sectors including food and agritech, digital, industry and more.

British researchers having access to more Horizon science funding calls also further emphasises the value of the UK’s participation in the EU’s Copernicus Earth Observation programme.

Furthermore, the UK and EU have a strong shared commitment to developing assured and independent European access to space: work which forms a key part of the UK’s own ambitions for space launch. With plans for the first launches from SaxaVord in the Shetland Islands later this year, the UK is a leading international partner and cooperator in Europe’s space ambitions and it is encouraging that British researchers will be able to access calls that help to further Europe’s ambition.

There is no time to lose for businesses, researchers, and scientists working in quantum, space and beyond to take advantage of this news, because new Horizon funding calls open in the coming weeks. New space and industry calls open from Thursday 22 May, and digital calls open from Tuesday 10 June.

Notes to editors

Since 2024, the government has provided extensive assistance to our R&D communities to maximise their chances of applying and succeeding in Horizon Europe. In addition to concrete funding initiatives, such as Pump Priming, we recently piloted brokerage visits to Italy, Germany and Spain for UK innovators and researchers looking to build Horizon consortia. Last month, more than 500 of the UK’s leading researchers, businesspeople and scientists gathered at London’s Oval for a Showcase event sharing insight on opportunities available through Horizon. Further information, including practical support on how to apply, is available on the Horizon Hub website. UK Research and Innovation (UKRI) also host regular events that help guide businesses and researchers through the opportunities on offer and the application process. We will continue to review the needs of the UK R&D community in order to offer support and facilitate access to Horizon Europe opportunities.

Potential applicants can find Horizon Europe calls (funding opportunities) open to UK-based applicants using the European Commission’s funding and tender opportunities portal.

More information on how to submit applications are available on the European Commission’s website. The pre-publication of the Horizon Europe 2025 Work Programme can be found here.

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Email press@dsit.gov.uk

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Published 29 April 2025

MIL OSI United Kingdom –

April 29, 2025

MIL-OSI New Zealand: Statement by Minister Todd McClay following the March 2025 Pastoral Sector Group meeting

Source: New Zealand Government

The Pastoral Sector Group (PSG) has held its first meeting, discussing farm emissions.
The group consists of Agriculture, Trade and Investment Minister Todd McClay, Climate Change Minister Simon Watts, and Chairs and CEOs from: Beef + Lamb New Zealand, Dairy Companies Association of New Zealand, Dairy NZ, Deer Industry New Zealand, Federated Farmers, and the Meat Industry Association.
Pasture Sector
Sector representatives contributed perspectives on the current state of the industry and a desire to work constructively toward a positive outcome for the rural sector.
They underlined the significant eﬀort made by farmers to date.
They stressed the need for any consideration of emissions reduction to be based upon science and to be solutions driven.
They stressed the need to revise the domestic methane target based on the principle of no additional warming.
They stressed the need for any solutions to be aﬀordable for farmers; and for the need to avoid imposing costs upon industry and government.
They voiced concerns about the eﬀects afforestation was having on the pastoral sector and welcomed the Government’s recent announcement to restrict farm to forest conversions.
They raised concerns about the negative impact that a price on agricultural emissions would have on production.
They stressed the need for certainty and time for the primary sector.
Government
Ministers reiterated that this group was to allow the sector to provide their views to government directly and to engage in a respectful dialogue.
Ministers thanked the primary sector for their significant contribution to New Zealand, and in particular, the importance of a strong primary sector to the New Zealand economy.
They stressed that the PSG was an opportunity to talk openly and that it was not a decision-making body.
The members of the group agreed that New Zealand farmers are among the world’s most carbon-eﬃcient food producers and were willing to do their part for New Zealand’s overall commitment to reduce emissions.
Ministers confirmed the following:

That the Government has removed agriculture from the Emissions Trading Scheme.
That the Government has disbanded He Waka Eka Noa.
That the Government is committed to a split gas approach.
That the Government commissioned an independent scientific review on the role of biogenic methane against additional warming.
That the Government will pass legislation this year to implement its decision of 4 December 2024 to restrict full farm to forest conversions.
That the Government is committed to meeting New Zealand’s climate obligations without closing down farms or sending jobs and production overseas.
That all decisions in respect to farm emissions will be informed by accepted science.
That the Government is mindful of the impact of costs related to emissions reduction on farmers; and the implications that cost could have for production.
That a revised 2050 biogenic methane target will be set this year.
That the Government is committed to the use of science and innovation to reduce emissions, not reducing on farm production.
That it is for New Zealand to decide how to reduce emissions.
That New Zealand has climate change obligations under some trade agreements and that the Government will be guided by domestic considerations and interests including those of New Zealand producers and the economy.
The Government currently has a plan that shows New Zealand can meet its obligations while growing the economy and without closing down farms or sending production or jobs overseas.
That the Government will continue to build confidence in the primary sector.

The PSG will meet again next month.

MIL OSI New Zealand News –

April 29, 2025

MIL-OSI New Zealand: Budget 2025: The Growth Budget

Source: New Zealand Government

Tēna koutou kātoa. Greetings everyone. Can I thank you Malcolm for that kind introduction and thank everyone who has taken the time to be here today. My special thanks go to our hosts Metco Engineering and the Hutt Valley Chamber of Commerce.
Let me also acknowledge my colleagues who join us today – your local MP and my Associate Minister of Finance the Hon Chris Bishop, together with the Minister of Education the Hon Erica Stanford.
This factory is a bit of a different setting than the conference centre or ballroom Ministers typically use for a pre-Budget speech. Why?
Because places like this are the engine room of the New Zealand economy.
Our Government knows that to speed up the economic recovery New Zealanders need we have to get this growth engine cranking.
I appreciate that economic growth can be a bit of an abstract concept: the work that happens on this factory floor is what it’s all about.
The workers at Metco solve problems, coming up with new products and manufacturing processes for a range of industries. They design and create clever components for customers around the world – producing everything from window stays through to bus stops.
Metco has grown successfully by making investments in its own machinery and technology and by hiring and up-skilling great people who come up with innovative ideas and then make them happen.
The growth of businesses like MetCo, and indeed of all the businesses represented in this room today, has created good jobs and livelihoods for the people of the Hutt Valley community.
It’s also allowed your businesses to make healthy tax contributions, which helps fund the Government’s investment in health services, schools, vital infrastructure and other important public spending.
Thank you for that contribution, we don’t take it for granted.
New Zealand needs more success stories like MetCo: Your growth is what’s needed to deliver the kind of country we all want: with better living standards, better job opportunities and more financially secure families.
That’s why our Government is going for growth.
Earlier this year we released a snapshot of the work we have underway to support this growth agenda. Going for Growth sets out 87 specific actions we are taking under five key themes:

Developing talent
Competitive business settings
Innovation, technology and science
Overseas investment and trade
Infrastructure for growth

I encourage you to check out the plan and the work underway. There’s more to come.
For today though, I’m going to switch out of my Economic Growth hat and into my Minister of Finance hat and focus my remarks on this year’s Budget.
The Context for Budget 2025
The Government’s growth ambition has been front and centre as we’ve put the Budget together.
We know that global uncertainty is challenging for many of you and we’re determined our Budget will play a role in giving you confidence for the future.
But let me be blunt: it’s not the easiest time to be putting together a Budget.
New Zealand is still recovering from the economic damage inflicted during the Covid period and we’re now facing the headwinds of further global instability.
There is a pressing need for greater investments in our health system, our education system, our defence force and other areas, and very little money to pay for those investments.
Our Government is also acutely conscious of the challenging economic circumstances many New Zealanders have experienced in the past few years as we’ve emerged from a period of very high inflation and rapidly rising interest rates.
The pain is still rippling through our communities. Kiwis feel it in the higher prices they still pay for almost everything, in higher levels of unemployment and in struggling local businesses. The cost of living remains a top-of-mind concern.
The good news is that, despite significant global challenges, a steady economic recovery is now taking place here, with export-led growth gathering strength, business confidence coming off its lows and the primary sector benefiting from higher commodity prices and mostly favourable growing conditions.
Having considered everything happening around the world, the Treasury is continuing to forecast accelerating growth in the New Zealand economy over the coming year, with falling unemployment forecast to follow in the second half of the year.
There’s no magic wand to wish away the price rises baked in over recent years, but getting inflation and interest rates under control has been essential to achieving this economic recovery.
That’s why I always take pause to celebrate that since our Government came to office inflation has returned to normal levels, resulting in a 200 basis point reduction in interest rates.
We must not take this progress for granted.
While some pretend we can fix all the post-Covid damage with yet more extravagant government spending, the economic truth is that they are wrong.
The only way to sustainably overcome cost of living pressures is through successive years of stable inflation, careful investment and sustained economic growth.
Our Government is committed to the responsible fiscal management and growth supporting policies needed to make that happen.
Debt, deficit and the path out
An important part of that effort is getting our own books in order. That’s a big task.
The previous Government’s spending decisions during and after Covid have left New Zealand with a sea of debt and red-ink in the government finances.
Government debt leapt up by almost $120 billion between 2019 and 2024, soaring from under $58 billion to $175 billion.
Those are big numbers, almost too big to comprehend, so let me explain it this way: That amounts to $22,000 more in debt for every New Zealander.
You may well ask: what do we have to show for all that debt?
To give you some further historical context, New Zealand’s net core Crown debt, which once hovered between five and 25 per cent of GDP, rose to around 42 per cent last year. That’s the highest level of government debt New Zealand has shouldered since the mid-1990s.
Servicing that debt is expensive.
The interest bill on government debt has soared from $3.6 billion in 2014 to $8.9 billion last year. That sum is more than annual core Crown expenses for the Police, Corrections, the Ministry of Justice, Customs and the Defence Force combined.
Our Government’s goal is to put net core Crown debt on a downward trajectory towards 40 per cent of GDP and in the longer term keep it below that percentage.
Why? Because allowing debt to keep spiralling would threaten the livelihood of every New Zealander.
We must ensure our country is financially strong and resilient enough to effectively respond to whatever the future may throw: be it earthquakes, extreme climatic events, biosecurity incursions or whatever. We need the world to keep seeing us as a good country to invest in and lend to. Manageable debt levels are an essential foundation for a strong economy and for your financial future.
Achieving lower debt levels isn’t easy: especially because the government books remain out of balance.
The post-Covid ‘structural deficit’ has left a big gap between what the country needs to fund to deliver on the spending commitments previous Budgets have made and what we need to earn to pay for that spending.
The Government is currently borrowing billions to bridge the gap.
Every Thursday afternoon, New Zealand Debt Management issues around $500 million of Government bonds. Some of this is to that roll over existing bonds that have expired, but large chunks of it are for new borrowing.
That level of borrowing obviously can’t go on forever, or else our kids and grandkids will be left with unsustainable debt and considerable economic uncertainty.
Most of you can probably relate to this if you think about your own household budget: sure, sensible borrowing has its place, but no overdraft can be extended forever, and while you can keep giving the credit card a hammering, left unpaid, it does, eventually, get declined.
It’s worth bearing this in mind next time somebody tries to suggest to you that the New Zealand Government needs to spend more on something.
The second question always needs to be: but how will we pay for it?
Our Government’s strategy is to reduce the deficit over time, through a gradual programme of consolidation and careful spending choices.
We are committed to maintaining stability for New Zealanders, by continuing to invest in essential frontline services, infrastructure for growth and social supports like superannuation.
But delivering those things requires us to make careful choices about what we spend elsewhere.
That’s why we’ve committed ourselves to ongoing reprioritisation and fiscal restraint. It isn’t easy, but it is essential.
Believe me, I’d rather we were in clover, with money to spend on all the good ideas we hear. But the reality is that we are governing in tighter times.
Economic growth is essential to our fiscal repair job. It’s simply the most effective way to raise government revenue, and to give us better choices for the future.
Some have suggested a different approach. They say New Zealand should seek to close the deficit by simply adding more and higher rates of taxes to Kiwis’ wages, savings, wealth or capital.
We reject that approach.
Punishing Kiwis with higher taxes right now would undermine our recovery, strangle growth and threaten the economic stability New Zealand needs.
It would pull the rug out from all those businesses and industries who are already just hanging on. And it would send an exodus of Kiwi talent and wealth to Australia and beyond.
It would be exactly the wrong recipe for a country whose future prospects depend on investment and growth.
Changes in the economic and fiscal outlook since HYEFU
The Treasury’s last set of economic forecasts was presented at the Half Year Update in December.
As you know, the global economic outlook has worsened considerably since that update.
Tarriff announcements by the US government, countervailing tariffs being imposed by China and an uncertain path for future tariffs and exemptions have created volatile global economic conditions with forecasters around the world agreeing that global growth will be lower this year and next year than they were previously predicting.
New Zealand can’t escape the fallout.
Accordingly, Treasury has adjusted the forecasts it presented in December, reducing their assumptions of real GDP growth in New Zealand in 2025 and 2026.
New Zealand’s economy will still be growing, but not as fast as forecast a few months ago.
That lower growth trajectory has an inevitable impact on the government books, reducing revenue and threatening our already difficult return to surplus and debt reduction.
At the same time, it’s clear that the country’s need for investment has not lessened: whether it be in the infrastructure we need for a more productive future, the funding needed to meet pressures in our health service and education system; or the need to rebuild our defence capability to meet the challenges of a less stable world.
On top of all of that, it’s also the case that New Zealand’s long-term productivity and savings challenges haven’t gone away.
So there’s a huge amount to juggle in this year’s Budget.
How has the Government managed these challenges?
We started with that question that I suggested to you earlier: How do we pay for the things we need now without putting our future economic stability at risk?
Our approach has been threefold.
First, there has been a very high bar for new initiatives in the Budget. I can confirm today that there will be no lolly scramble in Budget 2025. New spending initiatives are strictly limited to the most important priorities: our focus has been on health, education, law and order, defence, and a small number of critical social investments. We have also found room for modest measures to support business growth and to provide some carefully targeted cost of living relief.
Second, beyond a small number of exceptions, government departments are not receiving additional funding in the Budget. We expect government agencies to adjust themselves to New Zealand’s limited fiscal means. This will require restraint in public sector wage increases and an ongoing commitment to getting more impact out of every dollar spent.
Third, we have undertaken a significant savings drive.
That effort has involved Ministers identifying areas of previously committed spending that can no longer be justified in light of the challenging circumstances New Zealand now faces.
We’ve analysed spending decisions made by previous governments and re-evaluated them in the context of today’s constraints. This has involved a line-by-line review of previous funding commitments, including money put aside in contingency.
This reprioritisation exercise has required careful consideration and some tough, but necessary, choices.
At every step, we’ve asked ourselves two questions:

Can these dollars be justified when we are borrowing to pay for them?
Can we be sure these dollars will do more good in this area than if invested in our most pressing priorities – like funding essential health services, better educating our kids, defending New Zealand’s security or ensuring our future growth?

Taken together, the Government’s savings drive has freed-up billions of dollars. Those savings will now be re-deployed to fund New Zealand’s most pressing priorities.
Sticking to the fiscal strategy
In this year’s Budget we’ve also had to carefully consider whether, in light of major global economic events, our fiscal strategy still remains achievable.
The strategy is focused on two key goals: putting net debt on a downward trajectory and returning the books to an OBEGALx surplus by 2028.
This strategy matters, it matters for getting the books back in order and that’s about more than a set of numbers. It’s about keeping interest rates lower and providing a solid platform for future growth. It’s about ensuring New Zealand continues to be seen as a stable, reliable place to invest in and lend to. It’s about making sure we don’t leave our kids and grandkids with debts they just can’t repay.
At our last update in December – well before President Trump’s “Liberation Day” – we were expecting a small surplus in 2029, and it remained our intention to returning it a year earlier if possible.
I can confirm that our Government remains committed to those goals.
Sticking to them has required some careful adjustments in this year’s Budget.
The key change we have made is to the size of this year’s “operating allowance” – that is the amount of money put aside for new spending.
At the Half Year Update, the Treasury forecast that the “allowance” in Budget 2025 would be $2.4 billion.
That was always a small envelope. However, as I outlined earlier, our approach has been to supplement our new spending by reprioritising funds from elsewhere.
I am confirming today that the Government has reduced the size of our Budget 2025 operating allowance to $1.3 billion.
This means we will be spending billions less over the forecast period than would have otherwise been the case. This will reduce the amount of extra borrowing our country needs to do over the next few years and it will keep us on track towards balanced books and debt reduction.
The fiscal forecasts will not be finalised until later this week, but according to the latest numbers I have seen, this smaller operating allowance means we will continue to forecast a surplus in 2029.
The reality of global economic events is that if we’d pushed on with a larger operating allowance then we would be staring down the barrel of even bigger deficits and debt.
Let me emphasise once again: our Budget will still deliver increased investment in the things that really matter to Kiwis: like health, education, law and order, the defence force, business growth and targeted cost of living relief. Those things are important to you and they’re important to our Government.
Our careful reprioritisation approach means we can continue to make progress on today’s priorities while ensuring we are better positioned to face the challenges tomorrow will bring.
Yes, those challenges loom large.
But let’s get real: global instability may not be a passing trend. New Zealand can’t expect to keep borrowing as much as we are now. The world doesn’t owe us any favours.
This is not the time to kick the can down the road.
We must act now to secure our financial future.

Conclusion
In conclusion, Budget 2025 takes place against a difficult global backdrop.
We can’t wish that away. What we can do is focus on the things in our control.
Our Government is doing just that, by providing a predictable, steady approach to economic and fiscal management.
In an unstable world we are staying the course with responsible policies that provide stability, support investment and make New Zealand an attractive place for the world to trade and do business with.
These sensible policy approaches are the base from which we will deliver better choices and investments in the years ahead.
With those basics in place, there is much for Kiwi businesses to feel optimistic about.
New Zealand has enormous economic growth potential.
We are a safe, secure country with a growing constellation of free trade agreements and a global reputation as a good place to do business.
We are blessed with abundant natural resources – everything from ocean to freshwater, fertile land and temperate weather to abundant minerals.
In a world worried about food security, we feed more than 40 million people with levels of efficiency and sustainability that are the envy of many.
We have a long history of stable democracy, strong institutions and rule of law.
We’ve delivered scientific breakthroughs and global success stories and we will continue to do so. As I stand here today, we are world leaders in sending rocket to space – rockets that include components made right here in this factory.
Fundamentally, I’m optimistic about New Zealand’s economic future because I have faith in you: the New Zealanders who get out of bed each morning and go and make things happen.
I’m optimistic because I see how hard Kiwis work. I see how much effort Kiwi parents go to for their kids. I see how much employers and workers care about their communities. We are a smart, innovative, resilient people.
The next decade can be our decade. That requires good and steady government and careful spending choices. This year’s Budget will not be a lolly scramble. What this Budget will be is a responsible Budget that secures New Zealand’s future.

MIL OSI New Zealand News –

April 29, 2025

MIL-OSI New Zealand: Transport Minister to visit Sydney

Source: New Zealand Government

Transport and Infrastructure Minister Chris Bishop will travel to Sydney today to further promote New Zealand’s infrastructure investment opportunities following the NZ Infrastructure Investment Summit last month.
“The Government has signalled that New Zealand is open for business and going for economic growth. In Sydney I will present a New Zealand Government Infrastructure Investment update to the International Project Finance Association, highlighting the range of upcoming investment opportunities across New Zealand’s infrastructure pipeline,” Mr Bishop says.
“I will attend the 2025 National Infrastructure Awards dinner, hosted by Infrastructure Partnerships Australia, and host an NZTE Investors Roundtable lunch with a range of major potential investors in New Zealand.
“While there I will also visit a range of transport projects, including the WestConnex toll road, and the Paramatta Transit-Oriented Development (TOD) programme. All of these projects offer lessons for New Zealand as we embark on our ambitious transport investment programme.”
Mr Bishop leaves for Sydney today and will conclude his visit on Friday 2 May.

MIL OSI New Zealand News –

April 29, 2025

MIL-OSI New Zealand: Huge benefits available from medical conferences

Source: New Zealand Government

Outdated regulations stopping trained medical professionals from learning about new medicines through trade show advertising are out of step with other countries and disadvantage New Zealanders, Regulation Minister David Seymour, Health Minister Simeon Brown and Tourism and Hospitality Minister Louise Upston say.
“New Zealand’s prohibition on advertising medicines yet to be consented by Medsafe is a barrier to New Zealand’s ability to host medical conferences and trade shows. The opportunity cost of New Zealand missing out on these is huge,” Mr Seymour says.
These laws will be reformed so medicines yet to be consented by Medsafe can be advertised at medical conferences in New Zealand, instead of New Zealand health professionals needing to travel overseas.
“Prohibition was introduced in response to the perceived risk that pharmaceutical companies may attempt to circumvent formal medicine approval processes. The Ministry for Regulation has investigated and found this overly cautious approach is out of step with other recognised jurisdictions and is not proportionate to the perceived risk,” Mr Seymour says.
“Other nations like Australia, Canada, and the European Union allow advertising to generate revenue and provide medical professionals with information on cutting edge medicines. New Zealand doesn’t need to be left behind because of outdated red tape.
“This change is estimated to generate $90 million in associated revenue over the next few years.
“Prohibition also contradicts this Government’s efforts to increase medicines access. Allowing these products to be advertised would upskill doctors and give them the knowledge and skills to prescribe these treatments safely to Kiwis who need them.”
“This Government is committed to removing regulatory barriers so that we can drive economic growth. Removing the red tape around medical conferences will make New Zealand a better destination for conference organisers, while also making it easier for our own healthcare professionals to keep up with the latest innovations in health products and medicines,” Mr Brown says.
“New Zealand’s current health regulations can be overly bureaucratic, and this is slowing down access to care, increasing costs, and making it harder for patients to get the services they need.
“Our regulations can also make it harder to attract, train and retain healthcare workers. Workers want to work with top class treatments and patients want to be able to access them.
“Medical conferences are a great way to expand the collective knowledge and skill of the health workforce through the transfer of ideas and technologies.
“The Government is investing more than ever into our health system – a record $30 billion each year – and we expect it to deliver more for patients as a result.”
“Removing these barriers will also give us an opportunity to showcase our new conference facilities, fantastic hotels, and experiences, and pitch New Zealand as a world class location for business events like medical conferences,” Tourism and Hospitality Minister Louise Upston says.
“Business event participants spend an average of $175 more per day than other visitors, and often travel during the off-peak season, boosting tourism and economic activity year-round.
“Our message is clear, New Zealand is open for business. We are looking forward to welcoming more medical conferences to New Zealand, and we have great facilities to host them.”

MIL OSI New Zealand News –

April 29, 2025

MIL-OSI: Five Star Bancorp Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

RANCHO CORDOVA, Calif., April 28, 2025 (GLOBE NEWSWIRE) — Five Star Bancorp (Nasdaq: FSBC) (“Five Star” or the “Company”), a holding company that operates through its wholly owned banking subsidiary, Five Star Bank (the “Bank”), today reported net income of $13.1 million for the three months ended March 31, 2025, as compared to $13.3 million for the three months ended December 31, 2024 and $10.6 million for the three months ended March 31, 2024.

First Quarter Highlights

Performance and operating highlights for the Company for the periods noted below included the following:

	Three months ended
(in thousands, except per share and share data)	March 31, 2025			December 31, 2024			March 31, 2024
Return on average assets (“ROAA”)		1.30	%		1.31	%		1.22	%
Return on average equity (“ROAE”)		13.28	%		13.48	%		14.84	%
Pre-tax income	$	18,391		$	19,367		$	14,961
Pre-tax, pre-provision income⁽¹⁾	$	20,291		$	20,667		$	15,861
Net income	$	13,111		$	13,317		$	10,631
Basic earnings per common share	$	0.62		$	0.63		$	0.62
Diluted earnings per common share	$	0.62		$	0.63		$	0.62
Weighted average basic common shares outstanding		21,209,881			21,182,143			17,190,867
Weighted average diluted common shares outstanding		21,253,588			21,235,318			17,272,994
Shares outstanding at end of period		21,329,235			21,319,083			17,353,251

⁽¹⁾ See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.

James E. Beckwith, President and Chief Executive Officer, commented:

“The strength of Five Star Bank’s first quarter 2025 financial results is emblematic of a reputation built on an unwavering commitment to customers and community partners who rely on our speed to serve and certainty of execution for their own successes. This differentiated customer experience has created great demand for our services and seized market opportunities in San Francisco. As we continue to grow our presence, we now have 31 San Francisco Bay Area employees. As of March 31, 2025 our San Francisco Bay Area operations had $379.8 million in total deposits.

At the Company level, total loans held for investment increased by $89.1 million, or 2.52% (10.09% when annualized). Total deposits increased by $178.4 million, or 5.01% (20.05% when annualized), with wholesale deposits increasing by $130.0 million, or 23.21%, and non-wholesale deposits increasing by $48.4 million, or 1.61%. Short-term borrowings remained at zero as of March 31, 2025 and December 31, 2024. Net interest margin increased by nine basis points to 3.45% and our efficiency ratio increased to 42.58%, as compared to 41.21% for the fourth quarter of 2024, while cost of funds decreased nine basis points to 2.56%.

In the first quarter of 2025, we were pleased to declare another cash dividend of $0.20 per share. We were also pleased to have been ranked third among best-performing banks in the nation by S&P Global Market Intelligence (among banks with assets between $3 billion and $10 billion).

As we execute on the expansion of industry verticals and our presence in new geographies to meet customer demand, we expect the ongoing acceleration of our growth to benefit our customers, employees, and shareholders. We also expect our demonstrated ability to adapt to changing economic conditions to serve us well into the future as we remain vigilant and focused on disciplined business practices. We thank our employees for their outstanding commitment to ensuring Five Star Bank remains a safe, trusted, and steadfast banking partner.”

Financial highlights during the quarter included the following:

The San Francisco Bay Area team increased from 27 to 31 employees who generated deposit balances totaling $379.8 million at March 31, 2025, an increase of $87.4 million from December 31, 2024.
Cash and cash equivalents were $452.6 million, representing 12.11% of total deposits at March 31, 2025, as compared to 9.90% at December 31, 2024.
Total deposits increased by $178.4 million, or 5.01%, during the three months ended March 31, 2025, due to increases in both non-wholesale and wholesale deposits, which the Company defines as brokered deposits and California Time Deposit Program deposits. During the three months ended March 31, 2025, non-wholesale deposits increased by $48.4 million, or 1.61%, and wholesale deposits increased by $130.0 million, or 23.21%.
The Company had no short-term borrowings at March 31, 2025 or December 31, 2024.
Consistent, disciplined management of expenses contributed to our efficiency ratio of 42.58% for the three months ended March 31, 2025, as compared to 41.21% for the three months ended December 31, 2024.
For the three months ended March 31, 2025, net interest margin was 3.45%, as compared to 3.36% for the three months ended December 31, 2024 and 3.14% for the three months ended March 31, 2024. The effective Federal Funds rate was 4.33% as of March 31, 2025, remaining constant from December 31, 2024 and decreasing from 5.33% at March 31, 2024.
Other comprehensive income was $0.7 million during the three months ended March 31, 2025. Unrealized losses, net of tax effect, on available-for-sale securities were $11.6 million as of March 31, 2025. Total carrying value of held-to-maturity and available-for-sale securities represented 0.06% and 2.35% of total interest-earning assets, respectively, as of March 31, 2025.
The Company’s common equity Tier 1 capital ratio was 11.00% and 11.02% as of March 31, 2025 and December 31, 2024, respectively. The Bank continues to meet all requirements to be considered “well-capitalized” under applicable regulatory guidelines.
Loan and deposit growth in the three and twelve months ended March 31, 2025 was as follows:

(in thousands)	March 31, 2025		December 31, 2024		$ Change		% Change
Loans held for investment	$	3,621,819	$	3,532,686	$	89,133	2.52	%
Non-interest-bearing deposits		933,652		922,629		11,023	1.19	%
Interest-bearing deposits		2,802,702		2,635,365		167,337	6.35	%

(in thousands)	March 31, 2025		March 31, 2024		$ Change		% Change
Loans held for investment	$	3,621,819	$	3,104,130	$	517,689	16.68	%
Non-interest-bearing deposits		933,652		817,388		116,264	14.22	%
Interest-bearing deposits		2,802,702		2,138,384		664,318	31.07	%

The ratio of nonperforming loans to loans held for investment at period end remained at 0.05% from December 31, 2024 to March 31, 2025.
The Company’s Board of Directors declared on January 16, 2025, and the Company subsequently paid, a cash dividend of $0.20 per share during the three months ended March 31, 2025. The Company’s Board of Directors subsequently declared another cash dividend of $0.20 per share on April 17, 2025, which the Company expects to pay on May 12, 2025 to shareholders of record as of May 5, 2025.

Summary Results

Three months ended March 31, 2025, as compared to three months ended December 31, 2024

The Company’s net income was $13.1 million for the three months ended March 31, 2025, as compared to $13.3 million for the three months ended December 31, 2024. Net interest income increased by $0.5 million, primarily due to a decrease in interest expense due to lower average rates on deposits, partially offset by a decrease in interest income driven by lower balances and yields on interest-earning deposits in banks, as compared to the three months ended December 31, 2024. The provision for credit losses increased by $0.6 million, reflecting adjustments to expectations for credit losses based on economic trends and forecasts in the three months ended March 31, 2025 compared to the three months ended December 31, 2024. Non-interest income decreased by $0.3 million, primarily due to a reduction in income received on equity investments in venture-backed funds during the three months ended March 31, 2025, as compared to the three months ended December 31, 2024. Non-interest expense increased by $0.6 million, primarily related to an increase in salaries and employee benefits, partially offset by decreases in advertising, promotional, and other operating expenses during the three months ended March 31, 2025, as compared to the three months ended December 31, 2024.

Three months ended March 31, 2025, as compared to three months ended March 31, 2024

The Company’s net income was $13.1 million for the three months ended March 31, 2025, as compared to $10.6 million for the three months ended March 31, 2024. Net interest income increased by $7.2 million, primarily due to an increase in interest income driven by a higher balance of loans with higher yields, partially offset by an increase in interest expense due to larger average deposit balances, as compared to the three months ended March 31, 2024. The provision for credit losses increased by $1.0 million, relating to loan growth and adjustments to expectations for credit losses based on economic trends and forecasts during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. Non-interest income decreased by $0.5 million, primarily due to a reduction in income received on equity investments in venture-backed funds during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. Non-interest expense increased by $2.3 million during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, with an increase in salaries and employee benefits related to increased headcount as the leading driver.

The following is a summary of the components of the Company’s operating results and performance ratios for the periods indicated:

	Three months ended
(in thousands, except per share data)	March 31, 2025			December 31, 2024			$ Change			% Change
Selected operating data:
Net interest income	$	33,977		$	33,489		$	488		1.46	%
Provision for credit losses		1,900			1,300			600		46.15	%
Non-interest income		1,359			1,666			(307	)	(18.43	)%
Non-interest expense		15,045			14,488			557		3.84	%
Pre-tax income		18,391			19,367			(976	)	(5.04	)%
Provision for income taxes		5,280			6,050			(770	)	(12.73	)%
Net income	$	13,111		$	13,317		$	(206	)	(1.55	)%
Earnings per common share:
Basic	$	0.62		$	0.63		$	(0.01	)	(1.59	)%
Diluted	$	0.62		$	0.63		$	(0.01	)	(1.59	)%
Performance and other financial ratios:
ROAA		1.30	%		1.31	%
ROAE		13.28	%		13.48	%
Net interest margin		3.45	%		3.36	%
Cost of funds		2.56	%		2.65	%
Efficiency ratio		42.58	%		41.21	%

	Three months ended
(in thousands, except per share data)	March 31, 2025			March 31, 2024			$ Change			% Change
Selected operating data:
Net interest income	$	33,977		$	26,744		$	7,233		27.05	%
Provision for credit losses		1,900			900			1,000		111.11	%
Non-interest income		1,359			1,833			(474	)	(25.86	)%
Non-interest expense		15,045			12,716			2,329		18.32	%
Pre-tax income		18,391			14,961			3,430		22.93	%
Provision for income taxes		5,280			4,330			950		21.94	%
Net income	$	13,111		$	10,631		$	2,480		23.33	%
Earnings per common share:
Basic	$	0.62		$	0.62		$	—		—	%
Diluted	$	0.62		$	0.62		$	—		—	%
Performance and other financial ratios:
ROAA		1.30	%		1.22	%
ROAE		13.28	%		14.84	%
Net interest margin		3.45	%		3.14	%
Cost of funds		2.56	%		2.62	%
Efficiency ratio		42.58	%		44.50	%

Balance Sheet Summary

(in thousands)	March 31, 2025		December 31, 2024		$ Change			% Change
Selected financial condition data:
Total assets	$	4,245,057	$	4,053,278	$	191,779		4.73	%
Cash and cash equivalents		452,571		352,343		100,228		28.45	%
Total loans held for investment		3,621,819		3,532,686		89,133		2.52	%
Total investments		99,696		100,914		(1,218	)	(1.21	)%
Total liabilities		3,838,606		3,656,654		181,952		4.98	%
Total deposits		3,736,354		3,557,994		178,360		5.01	%
Subordinated notes, net		73,932		73,895		37		0.05	%
Total shareholders’ equity		406,451		396,624		9,827		2.48	%

Insured and collateralized deposits were approximately $2.5 billion, representing 67.55% of total deposits as of March 31, 2025, as compared to 66.92% as of December 31, 2024. Net uninsured and uncollateralized deposits were approximately $1.2 billion as of March 31, 2025, remaining constant from December 31, 2024.
Non-wholesale deposit accounts constituted 81.53% of total deposits as of March 31, 2025, as compared to 84.26% at December 31, 2024. Deposit relationships of greater than $5 million represented 60.87% of total deposits, as compared to 61.13% as of December 31, 2024, and had an average age of approximately 8.80 years as of March 31, 2025, as compared to 9.28 years as of December 31, 2024.
Cash and cash equivalents as of March 31, 2025 were $452.6 million, representing 12.11% of total deposits at March 31, 2025, as compared to 9.90% as of December 31, 2024.
Total liquidity (consisting of cash and cash equivalents and unused and immediately available borrowing capacity as set forth below) was approximately $2.0 billion as of March 31, 2025, as compared to $1.9 billion at December 31, 2024.

	March 31, 2025
(in thousands)	Line of Credit		Letters of Credit Issued		Borrowings		Available
Federal Home Loan Bank of San Francisco (“FHLB”) advances	$	1,276,072	$	731,500	$	—	$	544,572
Federal Reserve Discount Window		856,366		—		—		856,366
Correspondent bank lines of credit		175,000		—		—		175,000
Cash and cash equivalents		—		—		—		452,571
Total	$	2,307,438	$	731,500	$	—	$	2,028,509

The increase in total assets from December 31, 2024 to March 31, 2025 was primarily due to a $100.2 million increase in cash and cash equivalents and an $89.1 million increase in total loans held for investment. The $100.2 million increase in cash and cash equivalents primarily resulted from net cash inflows related to financing and operating activities of $174.1 million and $15.5 million, respectively, partially offset by net cash outflows related to investing activities of $89.3 million. The $89.1 million increase in total loans held for investment between December 31, 2024 and March 31, 2025 was a result of $259.3 million in loan originations and advances, partially offset by $65.6 million and $104.6 million in loan payoffs and paydowns, respectively. The $89.1 million increase in total loans held for investment included $19.8 million in purchases of loans within the consumer concentration of the loan portfolio.

The increase in total liabilities from December 31, 2024 to March 31, 2025 was primarily due to an increase in interest-bearing deposits of $167.3 million. The increase in interest-bearing deposits was largely due to increases in time and money market deposits of $131.2 million and $52.2 million, respectively.

The increase in total shareholders’ equity from December 31, 2024 to March 31, 2025 was primarily a result of net income recognized of $13.1 million and a $0.7 million increase in accumulated other comprehensive income, partially offset by $4.3 million in cash dividends paid during the period.

Net Interest Income and Net Interest Margin

The following is a summary of the components of net interest income for the periods indicated:

	Three months ended
(in thousands)	March 31, 2025			December 31, 2024			$ Change			% Change
Interest and fee income	$	57,087		$	57,745		$	(658	)	(1.14	)%
Interest expense		23,110			24,256			(1,146	)	(4.72	)%
Net interest income	$	33,977		$	33,489		$	488		1.46	%
Net interest margin		3.45	%		3.36	%

	Three months ended
(in thousands)	March 31, 2025			March 31, 2024			$ Change			% Change
Interest and fee income	$	57,087		$	47,541		$	9,546		20.08	%
Interest expense		23,110			20,797			2,313		11.12	%
Net interest income	$	33,977		$	26,744		$	7,233		27.05	%
Net interest margin		3.45	%		3.14	%

The following table shows the components of net interest income and net interest margin for the quarterly periods indicated:

	Three months ended
	March 31, 2025						December 31, 2024						March 31, 2024
(in thousands)	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Assets
Interest-earning deposits in banks	$	328,571	$	3,575	4.41	%	$	363,828	$	4,335	4.74	%	$	233,002	$	3,102	5.35	%
Investment securities		100,474		581	2.34	%		103,930		607	2.33	%		109,177		653	2.41	%
Loans held for investment and sale		3,567,992		52,931	6.02	%		3,498,109		52,803	6.01	%		3,082,290		43,786	5.71	%
Total interest-earning assets		3,997,037		57,087	5.79	%		3,965,867		57,745	5.79	%		3,424,469		47,541	5.58	%
Interest receivable and other assets, net		93,543						91,736						93,983
Total assets	$	4,090,580					$	4,057,603					$	3,518,452

Liabilities and shareholders’ equity
Interest-bearing transaction accounts	$	303,822	$	1,112	1.48	%	$	298,518	$	1,249	1.66	%	$	300,325	$	1,126	1.51	%
Savings accounts		123,599		772	2.53	%		127,298		887	2.77	%		124,561		861	2.78	%
Money market accounts		1,540,879		12,435	3.27	%		1,596,116		13,520	3.37	%		1,410,264		12,155	3.47	%
Time accounts		706,528		7,629	4.38	%		617,596		7,438	4.79	%		429,586		5,369	5.03	%
Subordinated notes and other borrowings		73,908		1,162	6.37	%		73,872		1,162	6.25	%		82,775		1,286	6.25	%
Total interest-bearing liabilities		2,748,736		23,110	3.41	%		2,713,400		24,256	3.56	%		2,347,511		20,797	3.56	%
Demand accounts		910,954						921,881						842,105
Interest payable and other liabilities		30,389						29,234						40,730
Shareholders’ equity		400,501						393,088						288,106
Total liabilities & shareholders’ equity	$	4,090,580					$	4,057,603					$	3,518,452

Net interest spread					2.38	%					2.23	%					2.02	%
Net interest income/margin			$	33,977	3.45	%			$	33,489	3.36	%			$	26,744	3.14	%

Net interest income during the three months ended March 31, 2025 increased $0.5 million, or 1.46%, to $34.0 million compared to $33.5 million during the three months ended December 31, 2024. Net interest margin totaled 3.45% for the three months ended March 31, 2025, an increase of nine basis points compared to the prior quarter. The increase in net interest income is primarily attributable to a $1.1 million decrease in interest expense, driven by a 15 basis point decrease in the average rate on interest-bearing deposits compared to the prior quarter. The decrease in interest expense was partially offset by a $0.7 million decrease in interest income, primarily due to a $35.3 million, or 9.69%, decrease in the average balance of interest-earning deposits in banks, combined with a 33 basis point decrease in the average yield on interest-earning deposits in banks.

As compared to the three months ended March 31, 2024, net interest income increased $7.2 million, or 27.05%, to $34.0 million from $26.7 million. Net interest margin totaled 3.45% for the three months ended March 31, 2025, an increase of 31 basis points compared to the same quarter of the prior year. The increase in net interest income is primarily attributable to an additional $9.1 million in loan interest income due to a $485.7 million, or 15.76%, increase in the average balance of loans and a 31 basis point improvement in the average yield on loans during the three months ended March 31, 2025 compared to the same quarter of the prior year. The increase in interest income was partially offset by a $2.4 million increase in deposit interest expense compared to the same quarter of the prior year. The increase in deposit interest expense is primarily attributable to a $478.9 million, or 15.42%, increase in the average balance of deposits and a five basis point increase in the average cost of deposits during the three months ended March 31, 2025 compared to the same quarter of the prior year.

Loans by Type

The following table provides loan balances, excluding deferred loan fees, by type as of March 31, 2025:

(in thousands)
Real estate:
Commercial	$	2,941,201
Commercial land and development		3,556
Commercial construction		113,002
Residential construction		5,747
Residential		34,053
Farmland		43,643
Commercial:
Secured		170,525
Unsecured		34,970
Consumer and other		277,093
Net deferred loan fees		(1,971	)
Total loans held for investment	$	3,621,819

Interest-bearing Deposits

The following table provides interest-bearing deposit balances by type as of March 31, 2025:

(in thousands)
Interest-bearing transaction accounts	$	295,633
Money market accounts		1,577,473
Savings accounts		128,210
Time accounts		801,386
Total interest-bearing deposits	$	2,802,702

Asset Quality

Allowance for Credit Losses

At March 31, 2025, the Company’s allowance for credit losses was $39.2 million, as compared to $37.8 million at December 31, 2024. The $1.4 million increase in the allowance is due to a $2.2 million provision for credit losses recorded during the three months ended March 31, 2025, partially offset by net charge-offs mainly attributable to commercial and industrial loans of $0.7 million, during the same period.

The Company’s ratio of nonperforming loans to loans held for investment remained at 0.05% from December 31, 2024 to March 31, 2025. Loans designated as watch decreased from $123.4 million to $112.0 million between December 31, 2024 and March 31, 2025. Loans designated as substandard increased from $2.6 million to $3.7 million between December 31, 2024 and March 31, 2025. There were no loans with doubtful risk grades at March 31, 2025 or December 31, 2024.

A summary of the allowance for credit losses by loan class is as follows:

	March 31, 2025				December 31, 2024
(in thousands)	Amount		% of Total		Amount		% of Total
Real estate:
Commercial	$	27,027	68.91	%	$	25,864	68.44	%
Commercial land and development		70	0.18	%		78	0.21	%
Commercial construction		2,227	5.68	%		2,268	6.00	%
Residential construction		78	0.20	%		64	0.17	%
Residential		279	0.71	%		270	0.71	%
Farmland		598	1.52	%		607	1.61	%
		30,279	77.20	%		29,151	77.14	%
Commercial:
Secured		5,905	15.05	%		5,866	15.52	%
Unsecured		403	1.03	%		278	0.74	%
		6,308	16.08	%		6,144	16.26	%
Consumer and other		2,637	6.72	%		2,496	6.60	%
Total allowance for credit losses	$	39,224	100.00	%	$	37,791	100.00	%

The ratio of allowance for credit losses to loans held for investment was 1.08% at March 31, 2025, as compared to 1.07% at December 31, 2024.

Non-interest Income

The following table presents the key components of non-interest income for the periods indicated:

	Three months ended
(in thousands)	March 31, 2025		December 31, 2024		$ Change			% Change
Service charges on deposit accounts	$	215	$	179	$	36		20.11	%
Gain on sale of loans		125		150		(25	)	(16.67	)%
Loan-related fees		448		400		48		12.00	%
FHLB stock dividends		331		332		(1	)	(0.30	)%
Earnings on bank-owned life insurance		161		182		(21	)	(11.54	)%
Other income		79		423		(344	)	(81.32	)%
Total non-interest income	$	1,359	$	1,666	$	(307	)	(18.43	)%

Service charges on deposit accounts. The increase resulted primarily from individually immaterial increases in fees earned for services and products to support deposit accounts including, but not limited to, service charges, check order fees, and debit card income.

Gain on sale of loans. The decrease resulted from a decline in the volume and effective yield of loans sold. During the three months ended March 31, 2025, approximately $1.7 million of loans were sold with an effective yield of 7.24%, as compared to approximately $2.0 million of loans sold with an effective yield of 7.60% during the three months ended December 31, 2024.

Other income. The decrease resulted primarily from $0.3 million of income received on equity investments in venture-backed funds during the three months ended December 31, 2024 which did not reoccur during the three months ended March 31, 2025.

The following table presents the key components of non-interest income for the periods indicated:

	Three months ended
(in thousands)	March 31, 2025		March 31, 2024		$ Change			% Change
Service charges on deposit accounts	$	215	$	188	$	27		14.36	%
Gain on sale of loans		125		369		(244	)	(66.12	)%
Loan-related fees		448		429		19		4.43	%
FHLB stock dividends		331		332		(1	)	(0.30	)%
Earnings on bank-owned life insurance		161		142		19		13.38	%
Other income		79		373		(294	)	(78.82	)%
Total non-interest income	$	1,359	$	1,833	$	(474	)	(25.86	)%

Gain on sale of loans. The decrease related primarily to an overall decline in the volume of loans sold, partially offset by an improvement in the effective yield of loans sold. During the three months ended March 31, 2025, approximately $1.7 million of loans were sold with an effective yield of 7.24%, as compared to approximately $5.2 million of loans sold with an effective yield of 7.08% during the three months ended March 31, 2024.

Other income. The decrease related primarily to $0.3 million of income received on equity investments in venture-backed funds during the three months ended March 31, 2024, which did not reoccur during the three months ended March 31, 2025.

Non-interest Expense

The following table presents the key components of non-interest expense for the periods indicated:

	Three months ended
(in thousands)	March 31, 2025		December 31, 2024		$ Change			% Change
Salaries and employee benefits	$	9,134	$	8,360	$	774		9.26	%
Occupancy and equipment		637		649		(12	)	(1.85	)%
Data processing and software		1,457		1,369		88		6.43	%
Federal Deposit Insurance Corporation (“FDIC”) insurance		455		440		15		3.41	%
Professional services		913		774		139		17.96	%
Advertising and promotional		522		752		(230	)	(30.59	)%
Loan-related expenses		319		321		(2	)	(0.62	)%
Other operating expenses		1,608		1,823		(215	)	(11.79	)%
Total non-interest expense	$	15,045	$	14,488	$	557		3.84	%

Salaries and employee benefits. The increase related primarily to: (i) a $0.9 million increase in salaries, benefits, and bonus expense; and (ii) a $0.3 million decrease in loan origination costs due to fewer loan originations, net of purchased consumer loans. The increase was partially offset by a $0.5 million decrease in commissions expense due to fewer loan originations, net of purchased consumer loans, period-over-period.

Professional services. The increase was primarily due to $0.1 million in fees paid for compensation consulting services, which did not occur in the three months ended December 31, 2024.

Advertising and promotional. The decrease related primarily to a $0.1 million decrease in expenses related to sponsored events and partnerships and $0.1 million decrease related to business development expenses.

Other operating expenses. The decrease was primarily due to a $0.1 million decrease in director expenses, such as conferences and meetings, combined with individually immaterial decreases in expenses related to operations, including administrative and operational expenses.

The following table presents the key components of non-interest expense for the periods indicated:

	Three months ended
(in thousands)	March 31, 2025		March 31, 2024		$ Change		% Change
Salaries and employee benefits	$	9,134	$	7,577	$	1,557	20.55	%
Occupancy and equipment		637		626		11	1.76	%
Data processing and software		1,457		1,157		300	25.93	%
FDIC insurance		455		400		55	13.75	%
Professional services		913		707		206	29.14	%
Advertising and promotional		522		460		62	13.48	%
Loan-related expenses		319		297		22	7.41	%
Other operating expenses		1,608		1,492		116	7.77	%
Total non-interest expense	$	15,045	$	12,716	$	2,329	18.32	%

Salaries and employee benefits. The increase related primarily to: (i) a $1.6 million increase in salaries, benefits, and bonus expense, mainly related to a 13.19% increase in headcount between March 31, 2024 and March 31, 2025; and (ii) a $0.1 million increase in commissions paid. This increase was partially offset by a $0.2 million increase in loan origination costs due to a greater number of loan originations, net of purchased consumer loans, period-over-period.

Data processing and software. The increase was primarily due to: (i) increased usage of our digital banking platform; (ii) higher transaction volumes related to the increased number of loan and deposit accounts; and (iii) an increased number of licenses required for new users on our loan origination and documentation system.

Professional services. The increase was primarily due to $0.1 million in fees paid for compensation consulting services and $0.1 million in consulting services relating to operations in San Francisco, neither of which occurred in the three months ended March 31, 2024.

Other operating expenses. The increase was primarily due to individually immaterial increases in expenses related to operations, including administrative and operational expenses such as travel, subscriptions, and professional association memberships.

Provision for Income Taxes

Three months ended March 31, 2025, as compared to three months ended December 31, 2024

Provision for income taxes decreased to $5.3 million for the three months ended March 31, 2025 from $6.1 million for the three months ended December 31, 2024, which was primarily due to: (i) a slight decline in taxable income recognized during the three months ended March 31, 2025; and (ii) a $0.6 million provision to return true-up recorded during the three months ended December 31, 2024 related primarily to the timing of recognition of low income housing tax credits, which did not reoccur during the three months ended March 31, 2025. The effective tax rates were 28.71% and 31.24% for the three months ended March 31, 2025 and December 31, 2024, respectively.

Three months ended March 31, 2025, as compared to three months ended March 31, 2024

Provision for income taxes increased by $1.0 million, or 21.94%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. This increase was primarily driven by an increase in taxable income. The effective tax rates were 28.71% and 28.94% for the three months ended March 31, 2025 and March 31, 2024, respectively.

Webcast Details

Five Star Bancorp will host a live webcast for analysts and investors on Tuesday, April 29, 2025 at 1:00 PM ET (10:00 AM PT) to discuss its first quarter financial results. To view the live webcast, visit the “News & Events” section of the Company’s website under “Events” at https://investors.fivestarbank.com/news-events/events. The webcast will be archived on the Company’s website for a period of 90 days.

About Five Star Bancorp

Five Star is a bank holding company headquartered in Rancho Cordova, California. Five Star operates through its wholly owned banking subsidiary, Five Star Bank. The Bank has eight branches in Northern California.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company’s beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. The Company cautions that the forward-looking statements are based largely on the Company’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company’s control) and are subject to risks and uncertainties, which change over time, and other factors, which could cause actual results to differ materially from those currently anticipated. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. If one or more of the factors affecting the Company’s forward-looking information and statements proves incorrect, then the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, the Company cautions you not to place undue reliance on the Company’s forward-looking information and statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 under the section entitled “Risk Factors,” and other documents filed by the Company with the Securities and Exchange Commission from time to time.

The Company disclaims any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.

Condensed Financial Data (Unaudited)

	Three months ended
(in thousands, except per share and share data)	March 31, 2025			December 31, 2024			March 31, 2024
Revenue and Expense Data
Interest and fee income	$	57,087		$	57,745		$	47,541
Interest expense		23,110			24,256			20,797
Net interest income		33,977			33,489			26,744
Provision for credit losses		1,900			1,300			900
Net interest income after provision		32,077			32,189			25,844
Non-interest income:
Service charges on deposit accounts		215			179			188
Gain on sale of loans		125			150			369
Loan-related fees		448			400			429
FHLB stock dividends		331			332			332
Earnings on bank-owned life insurance		161			182			142
Other income		79			423			373
Total non-interest income		1,359			1,666			1,833
Non-interest expense:
Salaries and employee benefits		9,134			8,360			7,577
Occupancy and equipment		637			649			626
Data processing and software		1,457			1,369			1,157
FDIC insurance		455			440			400
Professional services		913			774			707
Advertising and promotional		522			752			460
Loan-related expenses		319			321			297
Other operating expenses		1,608			1,823			1,492
Total non-interest expense		15,045			14,488			12,716
Income before provision for income taxes		18,391			19,367			14,961
Provision for income taxes		5,280			6,050			4,330
Net income	$	13,111		$	13,317		$	10,631

Comprehensive Income
Net income	$	13,111		$	13,317		$	10,631
Net unrealized holding gain (loss) on securities available-for-sale during the period		1,030			(3,747	)		(955	)
Less: Income tax expense (benefit) related to other comprehensive income (loss)		305			(1,108	)		(282	)
Other comprehensive income (loss)		725			(2,639	)		(673	)
Total comprehensive income	$	13,836		$	10,678		$	9,958

Share and Per Share Data
Earnings per common share:
Basic	$	0.62		$	0.63		$	0.62
Diluted		0.62			0.63			0.62
Book value per share		19.06			18.60			16.86
Tangible book value per share⁽¹⁾		19.06			18.60			16.86
Weighted average basic common shares outstanding		21,209,881			21,182,143			17,190,867
Weighted average diluted common shares outstanding		21,253,588			21,235,318			17,272,994
Shares outstanding at end of period		21,329,235			21,319,083			17,353,251

Selected Financial Ratios
ROAA		1.30	%		1.31	%		1.22	%
ROAE		13.28	%		13.48	%		14.84	%
Net interest margin		3.45	%		3.36	%		3.14	%
Loan to deposit⁽²⁾		97.01	%		99.38	%		105.37	%

_{⁽¹⁾ See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.
⁽²⁾ Loan balance in loan to deposit ratio is total loans held for investment and sale at period end. Deposit balance in loan to deposit ratio is total deposits at period end.}

(in thousands)	March 31, 2025			December 31, 2024			March 31, 2024
Balance Sheet Data
Cash and due from financial institutions	$	42,473		$	33,882		$	29,750
Interest-bearing deposits in banks		410,098			318,461			155,575
Time deposits in banks		4,024			4,121			5,878
Securities – available-for-sale, at fair value		97,111			98,194			105,006
Securities – held-to-maturity, at amortized cost		2,585			2,720			3,000
Loans held for sale		2,669			3,247			10,243
Loans held for investment		3,621,819			3,532,686			3,104,130
Allowance for credit losses		(39,224	)		(37,791	)		(34,653	)
Loans held for investment, net of allowance for credit losses		3,582,595			3,494,895			3,069,477
FHLB stock		15,000			15,000			15,000
Operating leases, right-of-use asset		5,944			6,245			6,932
Premises and equipment, net		1,524			1,584			1,569
Bank-owned life insurance		23,246			19,375			18,872
Interest receivable and other assets		57,788			55,554			55,058
Total assets	$	4,245,057		$	4,053,278		$	3,476,360

Non-interest-bearing deposits	$	933,652		$	922,629		$	817,388
Interest-bearing deposits		2,802,702			2,635,365			2,138,384
Total deposits		3,736,354			3,557,994			2,955,772
Subordinated notes, net		73,932			73,895			73,786
Other borrowings		—			—			120,000
Operating lease liability		6,591			6,857			7,320
Interest payable and other liabilities		21,729			17,908			26,902
Total liabilities		3,838,606			3,656,654			3,183,780

Common stock		302,788			302,531			220,804
Retained earnings		115,309			106,464			84,216
Accumulated other comprehensive loss, net of taxes		(11,646	)		(12,371	)		(12,440	)
Total shareholders’ equity		406,451			396,624			292,580
Total liabilities and shareholders’ equity	$	4,245,057		$	4,053,278		$	3,476,360

Quarterly Average Balance Data
Average loans held for investment and sale	$	3,567,992		$	3,498,109		$	3,082,290
Average interest-earning assets		3,997,037			3,965,867			3,424,469
Average total assets		4,090,580			4,057,603			3,518,452
Average deposits		3,585,782			3,561,409			3,106,841
Average total equity		400,501			393,088			288,106

Credit Quality
Allowance for credit losses to nonperforming loans		2,222.32	%		2,101.78	%		1,806.73	%
Nonperforming loans to loans held for investment		0.05	%		0.05	%		0.06	%
Nonperforming assets to total assets		0.04	%		0.05	%		0.06	%
Nonperforming loans plus performing loan modifications to loans held for investment		0.05	%		0.05	%		0.06	%

Capital Ratios
Total shareholders’ equity to total assets		9.57	%		9.79	%		8.42	%
Tangible shareholders’ equity to tangible assets⁽¹⁾		9.57	%		9.79	%		8.42	%
Total capital (to risk-weighted assets)		13.97	%		13.99	%		12.34	%
Tier 1 capital (to risk-weighted assets)		11.00	%		11.02	%		9.13	%
Common equity Tier 1 capital (to risk-weighted assets)		11.00	%		11.02	%		9.13	%
Tier 1 leverage ratio		10.17	%		10.05	%		8.63	%

_{⁽¹⁾ See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.}

Non-GAAP Reconciliation (Unaudited)

The Company uses financial information in its analysis of the Company’s performance that is not in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations, and cash flows computed in accordance with GAAP. However, the Company acknowledges that its non-GAAP financial measures have a number of limitations. As such, investors should not view these disclosures as a substitute for results determined in accordance with GAAP. Additionally, these non-GAAP measures are not necessarily comparable to non-GAAP financial measures that other banking companies use. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons.

Tangible shareholders’ equity to tangible assets is defined as total equity less goodwill and other intangible assets, divided by total assets less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholders’ equity to total assets. Management believes that tangible shareholders’ equity to tangible assets is a useful financial measure because it enables management, investors, and others to assess the Company’s financial health based on tangible capital. We had no goodwill or other intangible assets at the end of any period indicated. As a result, tangible shareholders’ equity to tangible assets is the same as total shareholders’ equity to total assets at the end of each of the periods indicated.

Tangible book value per share is defined as total shareholders’ equity less goodwill and other intangible assets, divided by the outstanding number of common shares at the end of the period. The most directly comparable GAAP financial measure is book value per share. Management believes that tangible book value per share is a useful financial measure because it enables management, investors, and others to assess the Company’s value and use of equity. We had no goodwill or other intangible assets at the end of any period indicated. As a result, tangible book value per share is the same as book value per share at the end of each of the periods indicated.

Pre-tax, pre-provision income is defined as pre-tax income plus provision for credit losses. The most directly comparable GAAP financial measure is pre-tax income. Management believes that pre-tax, pre-provision income is a useful financial measure because it enables management, investors, and others to assess the Company’s ability to generate operating profit and capital.

The following reconciliation table provides a more detailed analysis of this non-GAAP financial measure:

	Three months ended
(in thousands)	March 31, 2025		December 31, 2024		March 31, 2024
Pre-tax, pre-provision income
Pre-tax income	$	18,391	$	19,367	$	14,961
Add: provision for credit losses		1,900		1,300		900
Pre-tax, pre-provision income	$	20,291	$	20,667	$	15,861

Investor Contact:
Heather C. Luck, Chief Financial Officer
Five Star Bancorp
(916) 626-5008
hluck@fivestarbank.com

Media Contact:
Shelley R. Wetton, Chief Marketing Officer
Five Star Bancorp
(916) 284-7827
swetton@fivestarbank.com

The MIL Network –

April 29, 2025

MIL-OSI: Skyline Bankshares, Inc. Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

FLOYD, Va. and INDEPENDENCE, Va., April 28, 2025 (GLOBE NEWSWIRE) — Skyline Bankshares, Inc. (the “Company”) (OTC QX: SLBK) – the holding company for Skyline National Bank (the “Bank”) – announced its results of operations for the first quarter of 2025.

As previously announced, the Company acquired Johnson County Bank (“JCB”) on September 1, 2024, with the Company as the surviving corporation. For accounting purposes, the Company is considered the acquiror and JCB is considered the acquiree in the transaction. As such, all information contained herein as of and for periods prior to September 1, 2024 reflects the operations of the Company prior to the merger.

The Company recorded net income of $3.6 million, or $0.64 per share, for the quarter ended March 31, 2025, compared to net income of $2.1 million, or $0.37 per share, for the same period in 2024. First quarter 2025 earnings represented an annualized return on average assets (“ROAA”) of 1.17% and an annualized return on average equity (“ROAE”) of 15.85%, compared to 0.79% and 9.94%, respectively, for the same period last year. Net interest margin (“NIM”) was 4.15% for the first quarter of 2025, compared to 3.64% for the first quarter of 2024.

President and CEO Blake Edwards stated, “We are very pleased with our results for the first quarter of 2025. Our entire Skyline team has worked tirelessly in recent years to deliver on our long-term strategy of growing the Skyline franchise and creating shareholder value through branching activity, organic growth in our legacy markets, and through acquisitions such as last year’s partnership with Johnson County Bank. Our strong first quarter earnings, as noted above, reflect the success of these ongoing efforts. I’m extremely proud of this team and know they will continue to deliver on our brand promise of being “Always our Best” for years to come.”

Highlights

In connection with the acquisition of JCB, effective September 1, 2024, the Company acquired $154.1 million in assets at fair value, including $87.2 million in loans. The Company also assumed $133.8 million of liabilities at fair value, including $125.3 million of total deposits with a core deposit intangible asset recorded of $3.4 million, and goodwill of $4.6 million.
Net income was $3.6 million, or $0.64 per share, for the first quarter of 2025, compared to $2.1 million, or $0.37 per share, for the first quarter of 2024.
Net interest margin (“NIM”) was 4.15% for the first quarter of 2025, compared to 4.10% in the fourth quarter of 2024, and 3.64% in the first quarter of 2024.
Total assets increased in the first quarter of 2025 by $33.9 million, or 2.78%, and increased by $201.4 million, or 19.18%, when compared to $1.05 billion at March 31, 2024.
Net loans were $992.2 million at March 31, 2025, an increase of $15.8 million, or 1.61%, when compared to $976.4 million at December 31, 2024, and increased $172.3 million when compared to $819.9 million at March 31, 2024.
Total deposits were $1.11 billion at March 31, 2025, an increase of $22.2 million, or 2.03%, from $1.09 billion at December 31, 2024, and an increase of $183.9 million from $930.4 million at March 31, 2024.

First Quarter 2025 Income Statement Review

Net interest income after provision for credit losses in the first quarter of 2025 was $11.5 million, compared to $8.8 million in the first quarter of 2024, reflecting an increase in the provision for credit losses of $85 thousand in the quarterly comparison. Total interest income was $15.5 million in the first quarter of 2025, representing an increase of $3.5 million in comparison to the $12.0 million in the first quarter of 2024. Interest income on loans increased in the quarterly comparison by $3.6 million, primarily due to organic loan growth, and the addition of loan balances from the JCB acquisition. Management anticipates that this loan growth will continue to have a positive impact on both earning assets and loan yields.   Interest expense on deposits increased by $653 thousand in the quarterly comparison, as a result of rate increases on deposit offerings, and the additional interest-bearing deposits from the JCB acquisition. Management anticipates that interest expense on deposits could increase in the near term as competitive pressures for deposits may result in continued increases in rates on deposit offerings, especially on time deposits. Interest on borrowings decreased by $11 thousand.

First quarter 2025 noninterest income was $1.8 million compared with $1.7 million in the first quarter of 2024. Included in noninterest income for the first quarter of 2025 was $60 thousand from life insurance contracts.   Included in noninterest income for the first quarter of 2024 was $218 thousand from life insurance contracts and a net realized security loss of $141 thousand. The net security loss resulted from the recognition of unamortized premiums on a called bond.   Excluding these items, noninterest income increased by $104 thousand in the quarter over quarter comparison, primarily as a result of an increase in service charges of $100 thousand.

Noninterest expense in the first quarter of 2025 was $8.9 million compared with $8.0 million in the first quarter of 2024, an increase of $887 thousand, or 11.12%. Salary and benefits increased by $179 thousand in the quarterly comparison due to personnel additions and routine salary adjustments, as well as increased benefit costs. Occupancy and equipment expenses increased by $68 thousand, and data processing increased by $199 thousand in the quarterly comparisons primarily due the JCB acquisition. FDIC assessments increased by $102 thousand due to increased deposit levels from the JCB acquisition and organic deposit growth. Core deposit intangible amortization increased by $132 thousand in the quarterly comparison as a result of the JCB acquisition.

Income tax expense increased by $449 thousand in the quarter-to-quarter comparison, primarily due to an increase in net income before taxes of $2.0 million in the quarterly comparison.

Balance Sheet Review

Total assets increased in the first quarter of 2025 by $33.9 million, or 2.78%, to $1.25 billion at March 31, 2025, from $1.22 billion at December 31, 2024, and increased by $201.4 million, or 19.18%, from $1.05 billion at March 31, 2024. The increase in total assets during the quarter can be primarily attributed to the loan growth of $15.9 million and deposit growth of $22.2 million during the quarter.

Total loans increased during the first quarter by $15.9 million, or 1.61%, to $1.0 billion at March 31, 2025 from $984.5 million at December 31, 2024, and increased by $173.6 million, or 21.01%, compared to $826.7 million at March 31, 2024. Core loan growth during the first quarter was at an annualized rate of 6.60%.

Asset quality has remained strong, with a ratio of nonperforming loans to total loans of 0.22% at March 31, 2025 compared to 0.26% at December 31, 2024. The allowance for credit losses remained comparable at approximately 0.82% of total loans as of March 31, 2025 and December 31, 2024, respectively.

Investment securities increased by $196 thousand during the first quarter to $118.5 million at March 31, 2025 from $118.3 million at December 31, 2024, and decreased by $3.9 million from $122.4 million at March 31, 2024. The increase in the first quarter of 2025 was the result of a $2.6 million decrease in unrealized losses on investment securities and paydowns $2.4 million.

Total deposits increased in the first quarter of 2025 by $22.2 million, or 2.03%, to $1.11 billion at March 31, 2025 from $1.09 billion at December 31, 2024, and increased $183.9 million, or 19.77%, compared to $930.4 million at March 31, 2024. Noninterest-bearing deposits increased by $12.5 million and interest-bearing deposits increased by $9.7 million during the quarter. Lower cost interest-bearing deposits increased by $8.3 million during the quarter, and time deposits increased by $1.4 million.

Stockholders’ equity increased by $4.2 million, or 4.80%, to $92.9 million at March 31, 2025, from $88.7 million at December 31, 2024, and increased $10.0 million, or 12.12%, from $82.9 million at March 31, 2024. The change during the quarter was due to earnings of $3.6 million, less dividends paid of $1.4 million, and $2.0 million in other comprehensive income. Book value increased from $15.69 per share at December 31, 2024 to $16.44 per share at March 31, 2025.

Forward-looking statements

This release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934 as amended. These include statements as to expectations regarding future financial performance and any other statements regarding future results or expectations. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and are including this statement for purposes of these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies, and expectations of the Company, are generally identified by the use of words such as “believe,” “expect,” “intend,” “anticipate,” “estimate,” or “project” or similar expressions. Our ability to predict results, or the actual effect of future plans or strategies, is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries include, but are not limited to: changes in interest rates; general economic and financial market conditions; the effect of changes in banking, tax and other laws and regulations and interpretations or guidance thereunder; monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board; the economic impact of duties, tariffs or other barriers or restrictions on trade, and any retaliatory counter measures, and the volatility and uncertainty arising therefrom; the quality and composition of the loan and securities portfolios; demand for loan products; deposit flows; competition; demand for financial services in the Company’s market area; the implementation of new technologies; the ability to develop and maintain secure and reliable electronic systems; accounting principles, policies, and guidelines; disruptions to customer and employee relationships and business operations caused by the Johnson County Bank acquisition; the ability to achieve the cost savings and synergies contemplated by the acquisition within the expected timeframe, or at all; and other factors identified in Item 1A, “Risk Factors,” in the Company’s Annual Report on 10-K for the year ended December 31, 2024. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or clarify these forward‐looking statements, whether as a result of new information, future events or otherwise.

(See Attached Financial Statements for quarter ending March 31, 2025)

Skyline Bankshares, Inc. Condensed Consolidated Balance Sheets March 31, 2025; December 31, 2024; March 31, 2024

	March 31,			December 31,			March 31,
(dollars in thousands except share amounts)		2025			2024			2024
	(Unaudited)			(Audited)			(Unaudited)
*Assets*
Cash and due from banks	$	21,298		$	17,889		$	13,115
Interest-bearing deposits with banks		16,130			1,562			8,233
Federal funds sold		456			–			384
Investment securities available for sale		118,483			118,287			122,368
Restricted equity securities		4,993			4,034			3,609
Loans		1,000,332			984,459			826,684
Allowance for credit losses		(8,160	)		(8,027	)		(6,765	)
Net loans		992,172			976,432			819,919
Cash value of life insurance		26,649			26,743			23,055
Other real estate owned		140			140			–
Properties and equipment, net		35,342			34,663			31,394
Accrued interest receivable		4,009			4,013			3,450
Core deposit intangible		3,603			3,815			837
Goodwill		7,900			7,900			3,257
Deferred tax assets, net		5,060			5,593			5,252
Other assets		15,263			16,528			15,207
Total assets	$	1,251,498		$	1,217,599		$	1,050,080

*Liabilities*
Deposits
Noninterest-bearing	$	350,451		$	337,918		$	293,912
Interest-bearing		763,936			754,285			636,529
Total deposits		1,114,387			1,092,203			930,441

Borrowings		37,026			29,254			30,000
Accrued interest payable		699			950			683
Other liabilities		6,465			6,524			6,081
Total liabilities		1,158,577			1,128,931			967,205

*Stockholders’ Equity*
Common stock and surplus		33,556			33,507			33,145
Retained earnings		75,874			73,714			69,638
Accumulated other comprehensive loss		(16,509	)		(18,553	)		(19,908	)
Total stockholders’ equity		92,921			88,668			82,875
Total liabilities and stockholders’ equity	$	1,251,498		$	1,217,599		$	1,050,080
Book value per share	$	16.44		$	15.69		$	14.72
Tangible book value per share	$	14.41		$	13.62		$	14.00


*Asset Quality Indicators*
Nonperforming assets to total assets		0.19	%		0.22	%		0.17	%
Nonperforming loans to total loans		0.22	%		0.26	%		0.22	%
Allowance for credit losses to total loans		0.82	%		0.82	%		0.82	%
Allowance for credit losses to nonperforming loans		367.90	%		313.19	%		378.14	%

Skyline Bankshares, Inc.
Condensed Consolidated Statement of Operations

	Three Months Ended
	March 31,
(dollars in thousands except share amounts)	2025		2024
	(Unaudited)		(Unaudited)
*Interest income*
Loans and fees on loans	$	14,721	$	11,147
Interest-bearing deposits in banks		47		64
Federal funds sold		2		4
Interest on securities		682		734
Dividends		32		37
		15,484		11,986
*Interest expense*
Deposits		3,335		2,682
Interest on borrowings		426		437
		3,761		3,119
Net interest income		11,723		8,867

*Provision for credit losses*		178		93
Net interest income after
provision for credit losses		11,545		8,774

*Noninterest income*
Service charges on deposit accounts		584		551
Other service charges and fees		916		849
Net realized losses on securities		–		(141	)
Mortgage origination fees		35		55
Increase in cash value of life insurance		174		146
Life insurance income		60		218
Other income		17		21
		1,786		1,699
*Noninterest expenses*
Salaries and employee benefits		4,500		4,321
Occupancy and equipment		1,479		1,411
Data processing expense		848		649
FDIC Assessments		246		144
Advertising		244		217
Bank franchise tax		132		99
Director fees		93		58
Professional fees		302		221
Telephone expense		124		107
Core deposit intangible amortization		212		80
Other expense		683		669
		8,863		7,976
Net income before income taxes		4,468		2,497


*Income tax expense*		895		446
Net income	$	3,573	$	2,051

*Net income per share*	$	0.64	$	0.37
*Weighted average shares outstanding*		5,584,704		5,564,568
*Dividends declared per share*	$	0.25	$	0.23

Skyline Bankshares, Inc.
Reconciliation of Non-GAAP Financial Measures

In addition to financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP financial measures that provide useful information for financial and operational decision making, evaluating trends, and understanding the Company’s financial condition, capital position and financial results. Non-GAAP financial measures are supplemental and not a substitute for, or more important than, financial measures prepared in accordance with GAAP and may not be comparable to those reported by other financial institutions. The non-GAAP financial measure presented in this document includes tangible book value per share. The following tables present calculations underlying non-GAAP financial measures.

	March 31,			December 31,			March 31,
(dollars in thousands except share amounts)		2025			2024			2024
	(Unaudited)			(Unaudited)			(Unaudited)
*Tangible Common Equity*
Total stockholders’ equity (GAAP)	$	92,921		$	88,668		$	82,875
Less: Goodwill		(7,900	)		(7,900	)		(3,257	)
Less: Core deposit intangible		(3,603	)		(3,815	)		(837	)
Tangible common equity (non-GAAP)	$	81,418		$	76,953		$	78,781
Common stock shares outstanding		5,651,704			5,651,704			5,629,204
Tangible book value per share	$	14.41		$	13.62		$	14.00

For more information contact:
Blake Edwards, President & CEO – 276-773-2811
Lori Vaught, EVP & CFO – 276-773-2811

The MIL Network –

April 29, 2025

MIL-OSI USA: Rep. John James’ Legislation to Repatriate and Fortify U.S. Supply Chains Passes House

Source: United States House of Representatives – Congressman John James (Michigan 10th District)

WASHINGTON, D.C. – Today, the House of Representatives passed Congressman John James’ (MI-10) Promoting Resilient Supply Chains Act. The bill is aimed at bolstering American supply chains, creating good-paying manufacturing jobs, and reducing costs for consumers across the nation.

The Promoting Resilient Supply Chains Act (H.R. 2444) establishes a comprehensive approach to monitoring and proactively strengthening U.S. supply chains. By leveraging cutting-edge technologies such as artificial intelligence and quantum computing, the legislation ensures the Department of Commerce is properly anticipating and mitigating potential supply chain shocks — ranging from natural disasters to geopolitical conflicts — before they impact American families and businesses.

“As a former automotive supply-chain executive representing the #1 manufacturing district in the nation, I know firsthand that our dependence on adversarial foreign supply-chains is a problem we can no longer ignore,” said Congressman James. “This legislation is about bringing jobs back home, lowering costs for hardworking families, and ensuring our national security. It’s time to secure our own future by putting America First. I’m thrilled that this bill—which fully reinforces President Trump’s vision for secure supply chains—passed the House. I look forward to the bill moving to his desk and being signed into law.”

Key provisions of the legislation include:

Creating a Supply Chain Resiliency Program within the Department of Commerce to identify and address gaps in critical industries and emerging technologies.
Establishing an Early Warning System to predict and prevent disruptions using advanced technology.
Fostering Public-Private Collaboration to develop best practices and enhance supply chain security, with input from labor, industry, and government stakeholders.
Reducing Dependence on Adversarial Nations by incentivizing domestic manufacturing and diversifying supply sources.

The bill comes at a critical time, as recent years have highlighted the risks of over-reliance on foreign supply chains, particularly those of the Chinese Communist Party. By prioritizing American ingenuity and workforce development, the Promoting Resilient Supply Chains Act aims to safeguard economic stability and protect national interests for generations to come.

Rep. James was joined by his colleagues Reps. Debbie Dingell, Erin Houchin, Pat Ryan and Robin Kelly in introducing the legislation.

To view Rep. James speaking on the House Floor in favor of H.R. 2444, click here.

To view the bill text, click here.

###

MIL OSI USA News –

April 29, 2025

MIL-OSI USA: Manufacturing Masterminds Q&A With Matt Ringer

Source: US National Renewable Energy Laboratory

The Shy Kid Who Left Law To Forge Chemical (and Human) Bonds

Photo by Dennis Schroeder, NREL; graphic by Katie Carney, NREL

This article is part of the Manufacturing Masterminds profile series, which provides an inside look into the lives, research, and impact of NREL’s advanced manufacturing researchers.

At 8 years old, Matt Ringer already had the deep, booming voice of a radio announcer but not the personality to match.

He was a shy, track-and-field kid who spent hours running (and not talking), chasing the coveted 4-minute-mile barrier (he likely would have broken it, too, if a college injury did not thwart his plans). Even when Ringer did talk, he discovered his syrupy voice resonated more with adults than kids.

“Those things change who you are in certain ways,” Ringer said.

For a long time, Ringer was not sure who he was—at least in terms of his career. He revered James Bond and other fictional spies who schemed their ways out of no-win situations. He loved planes and Tom Cruise’s character in “Top Gun” and considered becoming a fighter pilot. But he also admired Mark Greene, the main character on the medical drama “ER” and the sharp-suited lawyers on “L.A. Law.”

In college, Ringer chose suits over lab coats—at least at first. He started as a political science major with law school ambitions, but his dad, an electrical engineer, had one request: “Sure, go be a political science major, but take a few math classes and an engineering class.” Ringer agreed and threw in a chemistry course, too. Soon, atoms and molecules and their frenetic energy seemed far more exciting than dense, prelaw readings.

“My skill set is not in reading massive amounts of material; it never has been. It’s doing things,” Ringer said. “I had to do a lot of work to get into chemical engineering. But I did.”

Matt Ringer may have started out as a shy track star running toward the 4-minute-mile barrier, but he ended up a charismatic leader running NREL’s advanced manufacturing program. Photos from Matt Ringer, NREL

Today, after 23 years at the National Renewable Energy Laboratory (NREL), Ringer has become a bit like one of his beloved energetic atoms. As the laboratory program manager for NREL’s advanced manufacturing program, he helps build teams (aka molecules), connecting experts, organizations, and resources. These bonds are what ensure the laboratory’s researchers can turn theoretical concepts—like wide-bandgap power electronics, novel polymer formulations, more efficient grid technologies, or more stable water supplies—into real solutions.

“I’m not going to be the person who creates the next sensor for an automotive manufacturing plant in Detroit, right?” Ringer said. “But I can help get the right people together to make that a reality.”

In the latest Manufacturing Masterminds Q&A, Ringer shares how he ended up in a people-centered role despite his shy childhood and why he joined NREL despite knowing nothing about the laboratory and its mission. This interview has been edited for clarity and length.

So, how did you go from political science to chemical engineering?

When I applied to college, I was wrapped up in the imaginary life of “L.A. Law.” But the first quarter, I took chemistry again, and it really resonated with me. I liked understanding how you could use the energy molecules contained. But I never had a desire to get a Ph.D., and my dad always said that if I added engineering to something, that would make me more hirable. Lo and behold, there was a major called chemical engineering, and I thought, “Well, that’s probably what I need to do.”

“I do love being the center of attention,” Ringer said. “Put me on a pedestal and let me talk, and I’ll do it.” Photo by Dennis Schroeder, NREL

What did you do after you graduated with your chemical engineering degree?

I worked as a research engineer at a startup membrane company in the San Francisco Bay Area called Membrane Technology and Research. I did a lot of pilot tests of our materials at larger companies and realized I was pretty good at talking to everybody from the senior manager all the way to the operator, technician, or mechanic. And I had an opportunity to shift from being a researcher to what we called more of a “sales engineer,” so I took it.

What did you do as a “sales engineer”?

I would prepare a quote, work with vendors to get costs for equipment, and then pull a bid package together. I also got to help manufacture the membranes that we sold. I would get all garbed up, get a glue gun, and roll sheets of membrane into a spiral-wound module. One of my sales highlights was spending about six months working with a Malaysian company to create a customized membrane system for their facility. That was my first sale and my one and only patent. That has long since expired, and I don’t believe it ever got used, but I still have a copy of it.

Why did you leave? Sounds like you were enjoying that role.

I had been there for six years, and I just needed to do something different and get out of California where I grew up. San Francisco was skyrocketing with dot-com craziness. And I had never envisioned how I would go to a dot-com with my background.

My girlfriend at the time—who’s now my wife—was from Colorado, so we decided to come back here. And my former boss found a job posting at NREL. I’ll be honest—I knew nothing about NREL.

Then why did you go for the NREL job?

NREL wanted a process engineer. Being a chemical engineer, I thought I needed to go work at a refinery, but I would have had to move to a very remote location to get started. And I wasn’t ready to do that. During my NREL interview, they asked what I knew about biomass, and I went on a diatribe about anaerobic digesters that wasn’t exactly correct. But apparently, my sales persona, coupled with some of the industry experience I had, fit what they needed here.

Ringer, seen here with his daughter Makena, may have bungled the biomass portion of his NREL interview, but his sales persona and industry experience earned him the role anyway. Photo from Matt Ringer, NREL

How did you become a laboratory program manager?

When I was here for about three years, I wanted to add a little more education into my background. I could go to law school and be an intellectual property attorney, but that’s a lot of reading. I could go to business school or get a master’s in engineering. Business school resonated with me. So, I went to talk to my boss. I had a whole pitch about why I should get my Master of Business Administration (MBA) and NREL should help pay for it. I said, “Hey, I want to get an MBA,” and he said, “Don’t say any more. I’ll use you in a different role.”

One of my first opportunities after I finished my MBA was creating a program where NREL works with small businesses or startups that wanted to develop our technologies. For the first time, I got to work with DOE (the U.S. Department of Energy) in a more formal way, which I really enjoyed.

For me, it always comes back to people, right? There were people at DOE who I just connected with—I understood their world a little bit. And I thought, “Well, how can I do that and help NREL at the same time?” And being a laboratory program manager was that role.

“I love winning races,” Ringer said. “But I can’t run races like I used to, which sucks.” Luckily, Ringer can still experience vicarious wins through his daughters, who both play soccer.

And what does a laboratory program manager do, exactly?

One of the amazing things for somebody like me who doesn’t have a Ph.D. is working with the researchers to understand the work they’re doing. I’m curious by nature, so the more I asked, the more people wanted to tell me. I’m not going to lie, there were things I didn’t understand. As a chemical engineer, I understand atoms and molecules more than I understand electrons. I’ve had to build a bridge between those things. That’s exactly what you do as a laboratory program manager. You bring different things together. You arrange teams. You try to be strategic.

To be successful as a laboratory program manager, you have to know people from throughout the lab: receivables, travel, human resources, web developers, technicians. And you need to ensure the operational side of the lab connects with the needs of the technical side. So, while I’m not doing the research, I can help you find the opportunities, develop stronger proposals, and then execute them.

What’s it like to work in advanced manufacturing, specifically?

It’s inspiring. The energy space is an opportunity to grow domestic manufacturing. I knew about 3D manufacturing but not what to do with it. But I learned. Now, if I go and talk to some of our researchers about power electronics, I’m not going to understand it all, but I know why they’re needed to advance manufacturing.

In an ideal world, what would you most hope to accomplish over the course of your career?

When I was 25 years old, I wanted to make lots of money. Now, I want to see our technologies make an impact. I also like to help new creative people come into NREL, so they can carry on our work. I don’t know if I’m the greatest mentor in the world. But I have a lot of experience that I can share with people, and I like seeing people grow.

What advice would you give to someone just starting their career?

You can’t skip steps. You can’t come into NREL as a researcher and expect to be a research fellow or senior director in five years. A lot of people just want to be the boss—whatever that means—and that’s a recipe for disaster. You have to put in the time, be patient, and not always think, “What am I going to be doing in five years?” You’re doing what you’re doing, and you need to get it done right.

And accept who you are. I’m bald. It’s fine. I enjoy it. Accepting who you are and where you are is so important to be happy. Otherwise, you’re fighting something that’s not real. And there are enough real things to fight.

MIL OSI USA News –

April 29, 2025

MIL-OSI Security: Fresno County Farmer Sentenced to Prison for Crop Insurance Fraud

Source: Office of United States Attorneys

Jatinderjeet “Jyoti” Sihota, 40, of Selma, was sentenced today to one year in prison for conspiring to commit crop insurance fraud, Acting U.S. Attorney Michele Beckwith announced.

According to court records, for many years, Sihota’s family’s farming operation produced table grapes and other crops in Fresno and Tulare Counties, and it sold many of those crops through a fruit packing company where Ralph Hackett, 69, of Clovis, was a member and manager.

Beginning in 2012, Sihota became involved with her family’s farming operation. Thereafter, from 2012 through 2016, she and Hackett carried out a fraud scheme to obtain more than $650,000 in crop insurance payments to which they were not entitled. They caused altered records that underreported the amount of crops the farming operation sold through the fruit packing company to be provided to the insurance company to make it appear as though the farming operation had suffered significant crop losses when that was not true.

Emails and other evidence showed that the fraud was Sihota’s idea. She pleaded with Hackett to make the alterations, instructed him on the specific changes that needed to be made, and asked him to keep everything a secret. Sihota emailed other fruit brokers asking them to alter records for her, but they refused to do so.

This case was the product of an investigation by the U.S. Department of Agriculture Office of Inspector General and Risk Management Agency Special Investigations Staff. Assistant U.S. Attorney Joseph Barton prosecuted the case.

Hackett was charged separately and has pleaded guilty for his role in the fraud. Hackett is scheduled to be sentenced on May 27, 2025. He faces a maximum statutory penalty of 20 years in federal prison and $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

MIL Security OSI –

April 29, 2025

MIL-OSI USA: House Passes Miller-Meeks Bill to Boost Domestic Manufacturing

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

Washington, D.C. – The House of Representatives tonight passed the Critical Infrastructure Manufacturing Feasibility Act, introduced by Reps. Mariannette Miller-Meeks (R-IA) and Kim Schrier (D-WA). The bipartisan legislation directs the Secretary of Commerce to conduct a study on the feasibility of manufacturing more critical infrastructure goods in the United States, with a focus on identifying rural communities best suited to support domestic production.

The legislation now heads to the Senate for consideration.

“With House passage of my bill HR 1721, we are now one step closer to getting this critical bill to President Trump’s desk and advancing his America First priorities,” said Rep. Miller-Meeks. “We can no longer allow adversarial nations, like China, to control the flow of goods and disrupt our economy. This bill takes a proactive step to assess how we can expand American manufacturing, particularly in rural areas, to protect our supply chains and strengthen our economy. I urge the Senate to swiftly pass this legislation that would greatly benefit the Hawkeye State.”

“The Critical Infrastructure Manufacturing Feasibility Act is an important step toward revitalizing rural economies and strengthening America’s supply chains,” said Emily Benjamin, President & CEO of Lee County Economic Development Group. “While urban areas have continued to grow, many rural communities have faced population decline, compounding challenges such as workforce shortages, underutilized infrastructure, and disinvestment. This legislation recognizes the untapped potential of rural America to drive economic growth, create quality jobs, and bolster the nation’s critical infrastructure manufacturing capacity. We appreciate Congresswoman Miller-Meeks’ leadership in championing policies that create real opportunities for communities like Lee County.”

“A data driven approach to the reshoring manufacturing into the United States, particularly in communities like the Quad Cities, is critical to the long-term success of the U.S. economy,” said Ryan Sempf, Executive Director of Government Affairs at the Quad Cities Chamber. “We appreciate Congresswoman Miller-Meeks proactively fighting to ensure America and the Quad Cities have the information necessary to compete for investment in critical supply chain industries”

“We need a clear understanding of what products can and should be manufactured in the United States. We cannot remain dependent on just a handful of other countries for critical parts and products,” said Congresswoman Schrier. “That’s why I was proud to introduce this commonsense, bipartisan bill with Congresswoman Miller Meeks that will allow us to make evidence-based, thoughtful decisions about the role domestic manufacturing will play in the years ahead, and I am thrilled to see it pass the House.”

Background:

First introduced in the 118th Congress, The Critical Infrastructure Manufacturing Feasibility Act directs the Secretary of Commerce to study which high-demand critical infrastructure products are currently imported, assess the costs of domestic production, and evaluate the feasibility of manufacturing these goods in rural communities and industrial parks. The findings must be reported to Congress within 18 months of enactment.

Click HERE to read the bill text for H.R. 1721, the Critical Infrastructure Manufacturing Feasibility Act

MIL OSI USA News –

April 29, 2025

MIL-OSI USA: Heinrich, Luján Introduce Legislation to Build More Homes for New Mexicans, Reduce Homelessness

US Senate News:

Source: United States Senator Ben Ray Luján (D-New Mexico)

WASHINGTON — U.S. Senators Martin Heinrich (D-N.M.) and Ben Ray Luján (D-N.M.) introduced the Housing for All Act, legislation to address the housing shortage and homelessness crises in New Mexico. If passed, the bill will invest in proven solutions to address housing shortages and provide a historic level of federal funding for programs to bolster innovative, locally developed solutions to increase the housing stock in the state and help New Mexicans experiencing homelessness.

As the Trump Administration undermines and defunds critical housing services across the country — including illegal staff cuts at the Department of Housing and Urban Development (HUD) and potential closures of nearly two-thirds of HUD field offices nationwide — investments to boost the affordable housing stock and reduce homelessness are essential.

“Housing costs in New Mexico and across the country are out of control. The solution is simple: we need to build and renovate more homes. And we need to provide our community leaders with the financial support necessary to carry out this important work,” said Heinrich. “While Donald Trump and Elon Musk’s “DOGE” boys gut housing services that help New Mexicans keep a roof over their head, I’m focused on boosting essential programs that increase the housing stock, lower costs, and help hardworking families get ahead.”

“In New Mexico and across the country, far too many Americans lack access to affordable housing options and are experiencing homelessness,” said Luján. “As housing programs and services face ongoing attacks and funding cuts, the need to expand affordable housing options has never been greater. That’s why I’m proud to introduce this legislation to address housing shortages and help end homelessness in New Mexico.”

Across New Mexico, there is a shortage of rental homes affordable and available to households whose incomes are at or below the poverty line or 30% of their area median income. And, according to a January 2024 survey conducted by the New Mexico Coalition to End Homelessness, 4,649 people experienced homelessness in New Mexico on a night in January. Furthermore, half of New Mexico’s lower-income renters spend more than 30% of their income on housing costs, including utilities.

Heinrich and Luján’s Housing for All Act takes an all-hands-on-deck approach to combat these crises, including historic investments from the federal government in housing solutions.

Addressing the Affordable Housing Shortage

The Housing for All Act addresses the affordable housing shortage by investing in federal housing programs, including:

The National Housing Trust Fund
- This program increases and preserves the supply of affordable housing.

The HOME Investment Partnerships Program
- The HOME program provides grants to state and local governments to build affordable housing for low-income households.

The Section 202 Supportive Housing for the Elderly Program
- The Section 202 program helps expand the supply of affordable housing by supporting nonprofit entities that build housing for low-income seniors.

The Section 811 Supportive Housing for People with Disabilities Program
- The Section 811 program helps build and subsidize rental housing with supportive services for low-income adults with disabilities.

Addressing the Homelessness Crisis

The Housing for All Act addresses the homelessness crisis by investing in:

Housing Choice Vouchers
- These vouchers help low-income families, elderly persons, veterans and disabled individuals afford housing in the private market.

Project-Based Rental Assistance
- This type of rental assistance allows tenants to live in an affordable unit and pay rent based upon their income.

The Emergency Solutions Grant Program
- This program connects families and individuals to rapid re-housing assistance, emergency shelter, and homelessness prevention.

Continuum of Care Program
- This program provides funding for efforts to end homelessness and promotes access to programs that can help homeless individuals and families.

Supporting Innovative and Locally Developed Approaches

The Housing for All Act supports innovative and locally developed approaches by investing in:

Hotel and motel conversions to permanent supportive housing with supportive services.

The Eviction Protection Grant Program to support experienced legal service providers in providing legal assistance to low-income tenants at risk of or subject to eviction.

Mobile crisis intervention teams to help those with medical or psychological needs get the care that they need.

Programs that offer a safe place to park overnight and facilitate access to rehousing and essential services.

Library programs that support people experiencing homelessness.

Inclusive transit-oriented housing development.

Improved coordination of culturally competent, trauma-informed behavioral health and homelessness services.

A one-page summary of the bill is here.

A section-by-section summary of the bill is here.

The text of the bill is here.

For a list of Heinrich’s actions to lower housing costs and tackle the housing shortage in New Mexico, click here.

For a list of Luján’s actions to lower housing costs and tackle the housing shortage in New Mexico, click here.

MIL OSI USA News –

April 29, 2025

MIL-OSI USA: Rep. Estes Applauds Nationwide E15 Waiver

Source: United States House of Representatives – Congressman Ron Estes (R-Kansas)

Rep. Estes Applauds Nationwide E15 Waiver

Today Rep. Ron Estes (R-Kansas) applauded the Environmental Protection Agency (EPA) nationwide waiver for the sale of E15 gasoline ahead of the summer months.

“Allowing the sale of E15 year-round and nationwide is a win for Kansas ethanol producers and drivers across the country,” said Rep. Estes. “This is a great step forward in restoring American energy dominance, and farmers in Kansas are ready to help provide relief for consumers at the pump. This is in line with my support for the Nationwide Consumer and Fuel Retailer Choice Act, which would make E15 available year-round and provide certainty to farmers, drivers and producers. Kansas biofuels are one piece of Republicans’ larger push to be energy independent and support U.S. energy producers.”

Background:
In their press release announcing the waiver, the EPA said, “This emergency action will provide families with relief at the pump by increasing fuel supply and ensuring a variety of gasoline fuel blends from which consumers can choose. More options at the pump helps protect consumers by reducing our reliance on imported fossil fuels, and bolstering U.S. energy independence, all while supporting American agriculture and manufacturing.”

MIL OSI USA News –

April 29, 2025

MIL-OSI: Oxbridge / SurancePlus to Speak during TOKEN2049 Dubai at Tokenized Capital Summit 2025 and at THE GREAT GATHER – Day 2

Source: GlobeNewswire (MIL-OSI)

GRAND CAYMAN, Cayman Islands, April 28, 2025 (GLOBE NEWSWIRE) — Oxbridge Re Holdings Limited (Nasdaq: OXBR) (“Oxbridge Re”), together with its subsidiary SurancePlus, is engaged in the tokenization of Real-World Assets (“RWAs”), initially with tokenized reinsurance securities and in providing reinsurance solutions to property and casualty insurers in the Gulf Coast region of the United States. The company today announced that its CEO and Chairman, Jay Madhu, will participate as both a panelist and keynote speaker at the Tokenized Capital Summit 2025 on April 29, 2025 and will also speak later in the week at THE GREAT GATHER – DAY 2 on May 1, 2025.

Tokenized Capital Summit 2025: Hosted by GammaPrime

An event showcasing Real-World Asset tokenization, featuring 1,500+ high-net-worth attendees, 150+ funds and 350+ companies.

Panel: Yielding Funds

Speakers: Jay Madhu (Oxbridge / SurancePlus), Jaime Baeza (ANB Investments), Drake Breeding (Figment Fund), Christopher Keshian (Triton Liquid Fund) and moderated by Keeyan Ravanshid (HODL Markets Inc)
Date: Tuesday, April 29, 2025
Time: 11:55 AM (GST)
Location: Sofitel Dubai Jumeirah Beach, Dubai

Keynote: Tokenized Reinsurance – How SurancePlus is democratizing access to high-yield reinsurance contracts through tokenized securities.

Date: Tuesday, April 29, 2025
Time: 3:45 PM (GST)
Location: Sofitel Dubai Jumeirah Beach, Dubai, UAE

THE GREAT GATHER – Day 2: Hosted by DNA Fund & IBC Ventures

An event bringing together Web3 leaders, finance executives, top-tier projects and investors to shape the future of finance, Web3, AI and technology.

Panel: A Deep Dive into How Traditional Finance Players are Navigating and Embracing Tokenization

Confirmed Panelists: Jay Madhu (Oxbridge / SurancePlus), Fahmi Syed (Input Output / Midnight) and Jake (BitGo)
Date: Thursday, May 1st, 2025
Time: 4:00PM – 4:30PM (GST)
Location: Gigi Rigolatto Dubai, J1 Beach – Jumeirah 1, Dubai, UAE

Jay Madhu, CEO of Oxbridge, commented, “TOKEN2049 and our speaking engagements provide a powerful platform to showcase Oxbridge / SurancePlus’ offering. Through our panels and keynote address, we look forward to demonstrating how tokenized reinsurance is opening access to high-yield, uncorrelated investment opportunities backed by blockchain technology and regulatory compliance.

Investors can participate directly in SurancePlus offerings:

Learn more and invest at SurancePlus.com/invest

Meet Oxbridge / SurancePlus at Tokenized Capital Summit 2025 Dubai

Investors and potential partners interested in Oxbridge and SurancePlus’ tokenized reinsurance offerings are encouraged to connect with the team during the event. Contact details are provided below.

Disclaimer: This press release does not constitute an offer to sell nor a solicitation of an offer to buy the EtaCat Re or ZetaCat Re tokenized reinsurance securities (the “Securities”). The Securities are not required to be, and have not been, registered under the United States Securities Act of 1933, as amended, in reliance on the exemptions provided by Regulation S and SEC Rule 506(c) thereunder. Offers and sales of the Securities are made only by, and pursuant to, the terms set forth in the Confidential Private Placement Memorandum relating to the Securities. The offering of the Securities is not being made to persons in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky, or other laws of such jurisdiction.

About Oxbridge Re Holdings Limited

Oxbridge Re Holdings Limited (NASDAQ: OXBR, OXBRW) (“Oxbridge”) is headquartered in the Cayman Islands. The company offers tokenized Real-World Assets (“RWAs”) as tokenized reinsurance securities and reinsurance business solutions to property and casualty insurers, through its wholly owned subsidiaries SurancePlus Inc., Oxbridge Re NS, and Oxbridge Reinsurance Limited.

Insurance businesses in the Gulf Coast region of the United States purchase property and casualty reinsurance through our licensed reinsurers Oxbridge Reinsurance Limited and Oxbridge Re NS.

Our Web3-focused subsidiary, SurancePlus Inc. (“SurancePlus”), has developed the first “on-chain” reinsurance RWA of its kind to be sponsored by a subsidiary of a publicly traded company. By digitizing interests in reinsurance contracts as on-chain RWAs, SurancePlus has democratized the availability of reinsurance as an alternative investment to both U.S. and non-U.S. investors.

Company Contact:
Oxbridge Re Holdings Limited
Jay Madhu, CEO
+1 345-749-7570
jmadhu@oxbridgere.com

Forward-Looking Statements

This press release may contain forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995. Words such as “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project” and other similar words and expressions are intended to signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various risks and uncertainties. A detailed discussion of risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements is included in the section entitled “Risk Factors” contained in our Form 10-K filed with the Securities and Exchange Commission (“SEC”) on 26th March 2024. The occurrence of any of these risks and uncertainties could have a material adverse effect on the Company’s business, financial condition and results of operations. Any forward-looking statements made in this press release speak only as of the date of this press release and, except as required by law, the Company undertakes no obligation to update any forward-looking statement contained in this press release, even if the Company’s expectations or any related events, conditions or circumstances change.

The MIL Network –

April 29, 2025

MIL-OSI: $HAREHOLDER ALERT: The M&A Class Action Firm Urges Stockholders of AKYA, WTMA, PLYA, QTRX to Act Now

Source: GlobeNewswire (MIL-OSI)

NEW YORK, April 28, 2025 (GLOBE NEWSWIRE) —

Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating:

Akoya Biosciences, Inc. (NASDAQ: AKYA), relating to the proposed merger with Quanterix. Under the terms of the agreement, Akoya shareholders will receive 0.318 shares of Quanterix common stock for each share of Akoya common stock owned. Akoya shareholders will own approximately 30% of the combined company.

ACT NOW. The Shareholder Vote is scheduled for May 13, 2025.

Click here for more https://monteverdelaw.com/case/akoya-biosciences-inc-akya/. It is free and there is no cost or obligation to you.

Welsbach Technology Metals Acquisition Corp. (NASDAQ: WTMA), relating to the proposed merger with Evolution Metals LLC. Under the terms of the agreement, EM shareholders will become shareholders in the surviving public company, Evolution Metals & Technologies Corp.

ACT NOW. The Shareholder Vote is scheduled for June 13, 2025.

Click here for more https://monteverdelaw.com/case/welsbach-technology-metals-acquisition-corp-wtma/. It is free and there is no cost or obligation to you.

Playa Hotels & Resorts N.V. (NASDAQ: PLYA), relating to the proposed merger with Hyatt Hotels Corporation. Under the terms of the agreement, Hyatt will acquire all outstanding shares of Playa for $13.50 per share in cash.

ACT NOW. The Tender Offer expires on May 23, 2025.

Click here for more https://monteverdelaw.com/case/playa-hotels-resorts-n-v-plya/ It is free and there is no cost or obligation to you.

Quanterix Corporation (NASDAQ: QTRX), relating to the proposed merger with Akoya Biosciences. Under the terms of the agreement, Akoya shareholders will be given 0.318 shares of Quanterix common stock for each share of Akoya common stock owned.

ACT NOW. The Shareholder Vote is scheduled for May 13, 2025.

Click here for more https://monteverdelaw.com/case/quanterix-corporation-qtrx/. It is free and there is no cost or obligation to you.

NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

Do you file class actions and go to Court?
When was the last time you recovered money for shareholders?
What cases did you recover money in and how much?

About Monteverde & Associates PC

Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court.

No company, director or officer is above the law. If you own common stock in any of the above listed companies and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.

Contact:
Juan Monteverde, Esq.
MONTEVERDE & ASSOCIATES PC
The Empire State Building
350 Fifth Ave. Suite 4740
New York, NY 10118
United States of America
jmonteverde@monteverdelaw.com
Tel: (212) 971-1341

Attorney Advertising. (C) 2025 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). Prior results do not guarantee a similar outcome with respect to any future matter.

The MIL Network –

April 29, 2025

MIL-OSI USA: Nadler, Smith, Himes Introduce West Bank Violence Prevention Act in Response to Ben-Gvir Visit

Source: United States House of Representatives – Congressman Jerrold Nadler (10th District of New York)

WASHINGTON, DC – Today, U.S. Rep. Jerrold Nadler (NY-12), Rep. Adam Smith (WA-09), and Rep. Jim Himes (CT-04), introduced the West Bank Violence Prevention Act in response to Leader of the Jewish Power Party and Israeli Minister of National Security Itamar Ben-Gvir’s visit to the United States.

The West Bank Violence Prevention Act codifies and enshrines into law the Biden Administration’s Executive Order 14115, which sought to prevent acts of violence in the West Bank and to punish those who commit such acts. The legislation, like the Executive Order, applies to those committing acts of violence in the West Bank, regardless of their nationality. During the Biden Administration, determinations under the Executive Order were made regarding both Palestinian and Israeli organizations and individuals.

President Trump repealed EO 14115 on his first day of his term, January 20, 2025. As a result, violent extremist organizations like the Palestinian group Lions’ Den and the Israeli settler group Hilltop Youth are no longer designated under the Specially Designated Nationals and Blocked Persons List (SDN List). With their assets no longer frozen, these groups continue wreaking terror in the West Bank unencumbered.

According to the Washington Institute for Near East Policy, settler violence increased by an estimated 30 percent over the first few months of 2025 compared to the same period in 2024. Such violence has reached a fever pitch, causing the West Bank to become “a tinderbox,” one match away from igniting into catastrophe.

The members joined together to introduce this legislation as Itamar Ben-Gvir completes his visit to the United States. Ben-Gvir has referred to the Hilltop Youth as “sweet kids,” has reportedly also used his authority as Minister of Internal Security to direct Israel’s police to shield perpetrators of settler violence, including giving them “a secret sense of backing” from the Israeli police. The Act serves to send a message: Ben-Gvir’s incitement is not welcome in our communities and in the United States.

“Itamar Ben-Gvir serves as inciter-in-chief of settler violence in the West Bank,” said Rep. Nadler. “In August of 2024, violent settlers chanting ‘we are Ben-Gvir’s gang’ burned down the home of a Palestinian family in the West Bank town of Jit. Ben-Gvir also downplayed concern expressed by Israeli security officials at a cabinet meeting regarding a wave of deadly settler violence in 2023, including the death of a 19-year-old Palestinian in Huwara, calling the attacks simply ‘graffiti.’ The head of Israel’s internal security service wrote to Prime Minister Netanyahu in August of 2024 that Ben-Gvir’s actions are doing ‘indescribable damage,’ and are ‘a massive stain on Judaism and us all.’ Let’s be crystal clear about who Itamar Ben-Gvir is: a racist, terrorist, Jewish supremacist. This past week Ben-Gvir brought his unique brand of hate across the ocean to American campuses, meetings with American Jews, and with at least one Republican Member of Congress. I am proud to be leading my colleagues in meetings Ben-Gvir’s arrival with the West Bank Violence Prevention Act, which will build on the progress made by the Biden Administration, and make clear that the United States Congress will not stand for Ben-Gvir’s incitement, and the settler violence in the West Bank that he champions. This bill would also prevent violence by all perpetrators, settler and Palestinian alike. I hope my colleagues will join us in using the tools at our disposal to enshrine President Biden’s landmark Executive Order on violence in the West Bank into law.”

“Violence in the West Bank threatens peace and stability in the region, and any entity committing this violence, from extremist Israeli settlers to the Palestinian terrorist group Lions’ Den, must be sanctioned,” said Rep. Smith. “Israel’s encouragement of settler organizations in the West Bank has exacerbated tensions in the region, as Prime Minister Netanyahu, Finance Minister Smotrich, and National Security Minister Ben-Gvir have promoted Israeli settler expansion and tacitly enabled settler violence. Further violence from any Israeli or Palestinian hostile actors must be discouraged to prevent further threats to the peace, security, and stability of the West Bank, Gaza, Israel, and the broader Middle East.”

“The ongoing violence in the West Bank, from both Israeli settlers and Palestinian terrorist groups, is devastating for residents in the short-term and detrimental to long-term stability in the territory,” said Rep. Himes. “The Biden Administration’s Executive Order took an important step towards deterring extremism in the region, and the West Bank Violence Prevention Act would codify that language to ensure that instigators of such violence are held accountable for their actions.”

The text of the West Bank Violence Prevention Act can be viewed here.

Rep. Nadler’s remarks at the “Say No to Ben-Gvir” rally in New York City can be watched here and read here.

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MIL OSI USA News –

April 29, 2025

MIL-OSI USA: Attorney General Bonta Announces Settlements with Companies Selling Seafood Products in California Regarding Cadmium and Lead in Their Products

Source: US State of California Department of Justice

OAKLAND – California Attorney General Rob Bonta today announced settlements with Clearwater Fine Foods USA Inc. (Clearwater), Seaquest Seafood Corporation (Seaquest), and Jayone Foods (Jayone), resolving allegations that the companies sold fresh and/or frozen seafood products in California with elevated levels of the toxic heavy metals lead and/or cadmium without the warnings required for exposures to such contaminants, a violation of Proposition 65 and the Unfair Competition Law. The settlement with Clearwater requires it to pay a total of $304,164.98 in civil penalties, attorneys’ fees, and costs. Clearwater must also adhere to injunctive terms that include implementing heavy metal reduction measures. A separate settlement requires Seaquest and Jayone to provide warnings, and to pay a total of $81,440 in civil penalties, attorneys’ fees, and costs. The Seaquest and Jayone settlement includes opt-in provisions that will allow other sellers of fresh or frozen seafood products to join in the settlement on similar terms.

“No one should have to question whether their food is safe to eat,” said Attorney General Bonta. “That’s why California law requires businesses to warn our residents about potential harm from significant exposures to toxic contaminants. We appreciate the cooperation of these companies in taking steps to minimize heavy metals in their seafood products, in addition to providing warnings if their products cannot be kept below the applicable regulatory threshold. At the California Department of Justice, we will continue to hold accountable those who fail to warn consumers that they are being exposed to significant levels of toxic contaminants.”

Cadmium and lead are both toxic heavy metals that accumulate in the body over time, leading to serious health issues. Long-term exposure to cadmium through ingestion can lead to reproductive harm and kidney toxicity. Exposure to lead by ingesting contaminated foods can lead to reproductive and developmental toxicity, resulting in effects such as reduced male fertility and an increased risk of miscarriage and birth defects.

The settlement with Clearwater, a seafood harvester, resulted from an investigation the Attorney General’s Office conducted after receiving Proposition 65 sixty-day notices from a private enforcer relating to several of Clearwater’s clam products. The data supporting these notices revealed cadmium concentrations in excess of the regulatory “safe harbor” level at which no Proposition 65 warnings are required.

After testing the Clearwater products to validate the test results, our office confirmed that the clam products at issue contained cadmium levels that exceeded the regulatory Proposition 65 safe harbor level set by the California Office of Environmental Health Hazard Assessment, the implementing agency. The products thus required warnings for reproductive toxicity under Proposition 65, which Clearwater had failed to provide, thereby violating both Proposition 65 and the Unfair Competition Law.

By entering into the settlement with the Attorney General, Clearwater has agreed to terms that go above and beyond the requirements of Proposition 65, and benefit public health by requiring Clearwater to minimize cadmium levels in its clam products. The settlement resolves the People’s allegations and requires the company to pay civil penalties, attorneys’ fees, and costs, as referenced above, as well as to adhere to injunctive terms. These terms include mandating that Clearwater monitor its clam harvesting, minimize the introduction of heavy metals during processing, retain a food quality auditor to assess the origin of any detected cadmium, and conduct compliance testing to ensure that levels of cadmium in these products are minimized. Clearwater would be required to provide warnings if its fresh or frozen clam products expose California consumers to levels of cadmium above the Proposition 65 warning threshold, or if it elects to discontinue these measures.

The settlement with Seaquest and Jayone, two distributors of seafood supplied by other companies, stems from a similar investigation conducted by the Attorney General’s Office. Our office tested multiple seafood products distributed by the two companies and confirmed that the products at issue exceeded the safe harbor levels for lead and/or cadmium. The products thus required warnings for reproductive toxicity under Proposition 65, which neither company had provided, thereby violating both Proposition 65 and the Unfair Competition Law.

The Seaquest and Jayone settlement resolves the People’s allegations, requires both companies to provide warnings in accordance with Proposition 65, and requires them to ask their suppliers to implement practices that will minimize the introduction of lead and cadmium during processing. It also requires the payment of civil penalties and attorneys’ fees and costs, as referenced above. The settlement includes opt-in provisions that permit similarly situated companies that may be out of compliance with Proposition 65 to join in the settlement on similar terms.

A copy of the Clearwater settlement can be found here.

A copy of the Seaquest and Jayone settlement can be found here.

MIL OSI USA News –

April 29, 2025

MIL-OSI: Farmers & Merchants Bancorp, Inc. Reports 2025 First-Quarter Financial Results

Source: GlobeNewswire (MIL-OSI)

ARCHBOLD, Ohio, April 28, 2025 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2025 first quarter ended March 31, 2025.

2025 First Quarter Financial and Operating Highlights
(at March 31, 2025 and on a year-over-year basis unless noted)

88 consecutive quarters of profitability
Total interest income increased 6.1% to $41.0 million, driven by a 19-basis point improvement in the yield on earning assets and a higher average loan balance
Total loans increased by $40.5 million, or 1.6% to $2.58 billion
Total assets increased by $101.2 million, or 3.1% to $3.39 billion
Total deposits increased by $78.9 million, or 3.0% to $2.70 billion
Efficiency ratio improved to 66.79%, compared to 74.08%
Pre-tax, pre-provision income increased 49.6% to $9.3 million, from $6.2 million
Net income increased 29.7% to $7.0 million, or $0.51 per basic and diluted share
Asset quality remains at historically strong levels with nonperforming loans of only $4.5 million and net charge-offs to average loans of 0.01%
Tier 1 leverage ratio was 8.44%

Lars B. Eller, President and Chief Executive Officer, stated, “2025 is off to a solid start, reflecting the positive impacts our strategic priorities are having on our financial performance. Throughout the first quarter we made progress enhancing profitability, controlling growth, driving innovation, and achieving greater operational efficiency. Most importantly, our strong first-quarter results underscore the excellent execution by our team and F&M’s ongoing commitment to delivering local, personalized financial services to our communities in Ohio, Indiana, and Michigan.”

Mr. Eller continued, “For the first quarter of 2025 our net interest margin grew 43-basis points year-over year to 3.03% and increased 19-basis points from the fourth quarter of 2024. This growth demonstrates the benefits of continued loan repricing, as well as our disciplined approach to new loan originations and strategic efforts underway to improve our cost of funds. Total revenue – defined by net interest income plus noninterest income – increased 16.7% year-over-year, while noninterest expense rose 5.2%. This favorable spread strengthened our efficiency ratio and drove a 49.6% increase in pre-tax, pre-provision income. As we continue to successfully execute against our 2025 strategic priorities, we expect continued year-over-year growth in net income.”

Income Statement
Net income for the 2025 first quarter ended March 31, 2025, was $7.0 million, compared to $5.4 million for the same period last year. Net income per basic and diluted share for the 2025 first quarter was $0.51, compared to $0.39 for the same period last year.

Deposits
At March 31, 2025, total deposits were $2.70 billion, an increase of 3.0% from March 31, 2024. The Company’s cost of interest-bearing liabilities was 2.76% for the quarter ended March 31, 2025, compared to 3.06% for the quarter ended March 31, 2024.

Mr. Eller commented, “We continue to pursue opportunities that optimize our deposit base and grow low-cost checking deposits. As a result, more expensive time-account balances have declined year-over-year by $19.5 million, while total deposits have increased by $78.9 million reflecting growth in lower cost core deposits. These trends have reduced our cost of funds, while improving our loan-to-deposit ratio.”

Loan Portfolio and Asset Quality
“Offices opened in 2023 continue to add new loans and new deposits at a faster pace than our legacy locations, which we believe demonstrates the need for the local community banking services F&M provides. Overall, we are experiencing stable demand across all of our markets, as a result of the addition of proven bankers to our team, our regional structure, new financial products, and growing commercial relationships. Positive demand trends allow us to control growth, expand our yield on loans, and maintain excellent asset quality. Our credit quality remains strong with nonperforming loans to total loans of just 0.17% at March 31, 2025 – the fourth quarter in a row this metric has remained below 0.20%,” continued Mr. Eller.

Total loans, net at March 31, 2025, increased 1.6%, or by $40.5 million to $2.58 billion, compared to $2.54 billion at March 31, 2024. The year-over-year increase was driven primarily by higher agricultural, commercial and industrial, and commercial real estate loans, partially offset primarily by lower consumer, agricultural real estate, and consumer real estate loans. Compared to the quarter ended December 31, 2024, total loans, net at March 31, 2025, increased by 0.8% or $20.0 million.

F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $4.5 million, or 0.17% of total loans at March 31, 2025, compared to $19.4 million, or 0.76% of total loans at March 31, 2024, and $3.1 million, or 0.12% at December 31, 2024.

F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.3% of the Company’s total loan portfolio at March 31, 2025. In addition, F&M’s commercial real estate office credit exposure represented 5.4% of the Company’s total loan portfolio at March 31, 2025, with a weighted average loan-to-value of approximately 63% and an average loan of approximately $965,366.

F&M’s CRE portfolio included the following categories at March 31, 2025:

CRE Category	Dollar Balance		Percent of CRE Portfolio⁽^*)	Percent of Total Loan Portfolio⁽^*)

Industrial	$	281,484	21.2%	10.9%
Multi-family		217,903	16.4%	8.4%
Retail		213,281	16.1%	8.3%
Hotels		157,139	11.8%	6.1%
Office		139,069	10.5%	5.4%
Gas Stations		70,983	5.3%	2.7%
Food Service		52,827	4.0%	2.0%
Senior Living		31,400	2.4%	1.2%
Development		29,907	2.3%	1.2%
Auto Dealers		27,294	2.1%	1.1%
Other		104,411	7.9%	4.0%
Total CRE	$	1,325,698	100.0%	51.3%

* Numbers have been rounded

At March 31, 2025, the Company’s allowance for credit losses to nonperforming loans was 586.38%, compared to 127.28% at March 31, 2024. The allowance to total loans was 1.07% at March 31, 2025, compared to 1.05% at March 31, 2024. Including accretable yield adjustments, associated with the Company’s prior acquisitions, F&M’s allowance for credit losses to total loans was 1.08% at March 31, 2025, compared to 1.11% at March 31, 2024.

Mr. Eller concluded, “While the near-term economic environment has become more fluid, we believe F&M is in a strong position because of the platform we have built and the strategies we are pursuing to transform our business in 2025. As a result, we continue to believe 2025 will be another good year for F&M.”

Stockholders’ Equity and Dividends
Total stockholders’ equity increased 8.5% to $344.6 million, or $25.12 per share at March 31, 2025, from $317.7 million, or $23.22 per share at March 31, 2024. The Company had a Tier 1 leverage ratio of 8.44%, compared to 8.40% at March 31, 2024.

Tangible stockholders’ equity increased to $263.0 million at March 31, 2025, compared to $256.5 million at March 31, 2024. On a per share basis, tangible stockholders’ equity at March 31, 2025, was $19.17 per share, compared to $18.75 per share at March 31, 2024.

For the three months ended March 31, 2025, the Company declared cash dividends of $0.22125 per share, representing a 0.6% increase over the same period last year. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 30 consecutive years. For the three months ended March 31, 2025, the dividend payout ratio was 43.10% compared to 55.52% for the same period last year.

About Farmers & Merchants State Bank:
F&M Bank is a local independent community bank that has been serving its communities since 1897. F&M Bank provides commercial banking, retail banking and other financial services. Our locations are in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben and Wells counties. The Michigan footprint includes Oakland County, and we have Loan Production Offices in Troy, Michigan; Muncie, Indiana; and Perrysburg and Bryan, Ohio.

Safe Harbor Statement
Farmers & Merchants Bancorp, Inc. (“F&M”) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, or the effects of the COVID-19 pandemic, and its impacts on our credit quality and business operations, as well as its impact on general economic and financial market conditions. F&M assumes no responsibility to update this information. For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

Non-GAAP Financial Measures
This press release includes disclosure of financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers & Merchants Bancorp, Inc. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers & Merchants Bancorp, Inc.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures is included within this press release.

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME
(Unaudited) (in thousands of dollars, except per share data)

	Three Months Ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Interest Income
Loans, including fees	$	37,072		$	36,663		$	36,873		$	36,593		$	35,200
Debt securities:
U.S. Treasury and government agencies		2,097			1,882			1,467			1,148			1,045
Municipalities		382			384			387			389			394
Dividends		338			367			334			327			333
Federal funds sold		–			24			7			7			7
Other		1,113			2,531			2,833			2,702			1,675
Total interest income		41,002			41,851			41,901			41,166			38,654
Interest Expense
Deposits		13,988			15,749			16,947			16,488			15,279
Federal funds purchased and securities sold under agreements to repurchase		271			274			277			276			284
Borrowed funds		2,550			2,713			2,804			2,742			2,689
Subordinated notes		284			285			284			285			284
Total interest expense		17,093			19,021			20,312			19,791			18,536
Net Interest Income – Before Provision for Credit Losses		23,909			22,830			21,589			21,375			20,118
Provision for (Recovery of) Credit Losses – Loans		811			346			282			605			(289	)
Recovery of Credit Losses – Off Balance Sheet Exposures		(260	)		(120	)		(267	)		(18	)		(266	)
Net Interest Income After Provision for Credit Losses		23,358			22,604			21,574			20,788			20,673
Noninterest Income
Customer service fees		381			237			300			189			598
Other service charges and fees		1,124			1,176			1,155			1,085			1,057
Interchange income		1,421			1,322			1,315			1,330			1,429
Loan servicing income		762			771			710			513			539
Net gain on sale of loans		284			223			215			314			107
Increase in cash surrender value of bank owned life insurance		244			248			265			236			216
Net gain (loss) on sale of other assets owned		(54	)		22			–			49			–
Total noninterest income		4,162			3,999			3,960			3,716			3,946
Noninterest Expense
Salaries and wages		7,878			7,020			7,713			7,589			7,846
Employee benefits		2,404			2,148			2,112			2,112			2,171
Net occupancy expense		1,199			1,072			1,054			999			1,027
Furniture and equipment		1,278			1,032			1,472			1,407			1,353
Data processing		557			160			339			448			500
Franchise taxes		397			312			410			265			555
ATM expense		491			328			472			397			473
Advertising		503			498			597			519			530
FDIC assessment		465			505			516			507			580
Servicing rights amortization – net		127			244			219			187			168
Loan expense		228			236			244			251			229
Consulting fees		745			242			251			198			186
Professional fees		559			368			453			527			445
Intangible asset amortization		445			446			445			444			445
Other general and administrative		1,484			1,465			1,128			1,495			1,333
Total noninterest expense		18,760			16,076			17,425			17,345			17,841
Income Before Income Taxes		8,760			10,527			8,109			7,159			6,778
Income Taxes		1,808			2,146			1,593			1,477			1,419
Net Income		6,952			8,381			6,516			5,682			5,359
Other Comprehensive Income (Loss) (Net of Tax):
Net unrealized gain (loss) on available-for-sale securities		6,464			(7,403	)		11,664			2,531			(1,995	)
Reclassification adjustment for realized loss on sale of available-for-sale securities		–			–			–			–			–
Net unrealized gain (loss) on available-for-sale securities		6,464			(7,403	)		11,664			2,531			(1,995	)
Tax expense (benefit)		1,358			(1,554	)		2,449			531			(418	)
Other comprehensive income (loss)		5,106			(5,849	)		9,215			2,000			(1,577	)
Comprehensive Income	$	12,058		$	2,532		$	15,731		$	7,682		$	3,782
Basic Earnings Per Share	$	0.51		$	0.61		$	0.48		$	0.42		$	0.39
Diluted Earnings Per Share	$	0.51		$	0.61		$	0.48		$	0.42		$	0.39
Dividends Declared	$	0.22125		$	0.22125		$	0.22125		$	0.22		$	0.22

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited) (in thousands of dollars, except share data)

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(Unaudited)						(Unaudited)			(Unaudited)			(Unaudited)
Assets
Cash and due from banks	$	172,612		$	174,855		$	244,572		$	191,785		$	186,541
Federal funds sold		425			1,496			932			1,283			1,241
Total cash and cash equivalents		173,037			176,351			245,504			193,068			187,782

Interest-bearing time deposits		1,992			2,482			2,727			3,221			2,735
Securities – available-for-sale		438,568			426,556			404,881			365,209			347,516
Other securities, at cost		14,062			14,400			15,028			14,721			14,744
Loans held for sale		2,331			2,996			1,706			1,628			2,410
Loans, net of allowance for credit losses		2,555,552			2,536,043			2,512,852			2,534,468			2,516,687
Premises and equipment		33,163			33,828			33,779			34,507			35,007
Construction in progress		–			–			35			38			9
Goodwill		86,358			86,358			86,358			86,358			86,358
Loan servicing rights		5,805			5,656			5,644			5,504			5,555
Bank owned life insurance		35,116			34,872			34,624			34,359			34,123
Other assets		42,802			45,181			46,047			49,552			54,628

Total Assets	$	3,388,786		$	3,364,723		$	3,389,185		$	3,322,633		$	3,287,554

Liabilities and Stockholders’ Equity
Liabilities
Deposits
Noninterest-bearing	$	502,318		$	516,904		$	481,444		$	479,069		$	510,731
Interest-bearing
NOW accounts		874,881			850,462			865,617			821,145			829,236
Savings		696,635			671,818			661,565			673,284			635,430
Time		626,450			647,581			676,187			667,592			645,985
Total deposits		2,700,284			2,686,765			2,684,813			2,641,090			2,621,382

Federal funds purchased and securities
sold under agreements to repurchase		27,258			27,218			27,292			27,218			28,218
Federal Home Loan Bank (FHLB) advances		245,474			246,056			263,081			266,102			256,628
Subordinated notes, net of unamortized issuance costs		34,846			34,818			34,789			34,759			34,731
Dividend payable		2,997			2,996			2,998			2,975			2,975
Accrued expenses and other liabilities		33,326			31,659			40,832			27,825			25,930
Total liabilities		3,044,185			3,029,512			3,053,805			2,999,969			2,969,864

Commitments and Contingencies

Stockholders’ Equity
Common stock – No par value 20,000,000 shares authorized; issued
14,564,425 shares 3/31/25 and 12/31/24; outstanding 13,718,336 shares 3/31/25 and 13,699,536 shares 12/31/24		135,407			135,565			135,193			135,829			135,482
Treasury stock – 846,089 shares 3/31/25 and 864,889 shares 12/31/24		(10,768	)		(10,985	)		(10,904	)		(11,006	)		(10,851	)
Retained earnings		240,079			235,854			230,465			226,430			223,648
Accumulated other comprehensive loss		(20,117	)		(25,223	)		(19,374	)		(28,589	)		(30,589	)
Total stockholders’ equity		344,601			335,211			335,380			322,664			317,690

Total Liabilities and Stockholders’ Equity	$	3,388,786		$	3,364,723		$	3,389,185		$	3,322,633		$	3,287,554

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
SELECT FINANCIAL DATA

	For the Three Months Ended
Selected financial data	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Return on average assets		0.85	%		0.99	%		0.78	%		0.69	%		0.66	%
Return on average equity		8.31	%		10.00	%		7.93	%		7.13	%		6.76	%
Yield on earning assets		5.19	%		5.20	%		5.27	%		5.22	%		5.00	%
Cost of interest bearing liabilities		2.76	%		3.01	%		3.21	%		3.18	%		3.06	%
Net interest spread		2.43	%		2.19	%		2.06	%		2.04	%		1.94	%
Net interest margin		3.03	%		2.84	%		2.71	%		2.71	%		2.60	%
Efficiency ratio		66.79	%		59.82	%		67.98	%		69.03	%		74.08	%
Dividend payout ratio		43.10	%		35.75	%		45.99	%		52.35	%		55.52	%
Tangible book value per share	$	17.71		$	17.74		$	17.72		$	16.79		$	16.51
Tier 1 leverage ratio		8.44	%		8.12	%		8.04	%		8.02	%		8.40	%
Average shares outstanding		13,706,003			13,699,869			13,687,119			13,681,501			13,671,166

Loans	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
(Dollar amounts in thousands)
Commercial real estate	$	1,325,698		$	1,310,811		$	1,301,160		$	1,303,598		$	1,304,400
Agricultural real estate		215,898			216,401			220,328			222,558			227,455
Consumer real estate		523,383			520,114			524,055			525,902			525,178
Commercial and industrial		278,254			275,152			260,732			268,426			256,051
Agricultural		153,607			152,080			137,252			142,909			127,670
Consumer		60,115			63,009			67,394			70,918			74,819
Other		24,985			24,978			25,916			26,449			26,776
Less: Net deferred loan fees, costs and other ⁽¹⁾		(36	)		(676	)		1,499			(1,022	)		(982	)
Total loans, net	$	2,581,904		$	2,561,869		$	2,538,336		$	2,559,738		$	2,541,367


Asset quality data	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
(Dollar amounts in thousands)
Nonaccrual loans	$	4,494		$	3,124		$	2,898		$	2,487		$	19,391
90 day past due and accruing	$	–		$	–		$	–		$	–		$	–
Nonperforming loans	$	4,494		$	3,124		$	2,898		$	2,487		$	19,391
Other real estate owned	$	–		$	–		$	–		$	–		$	–
Nonperforming assets	$	4,494		$	3,124		$	2,898		$	2,487		$	19,391


Allowance for credit losses – loans	$	26,352		$	25,826		$	25,484		$	25,270		$	24,680
Allowance for credit losses – off balance sheet credit exposures		1,281			1,541			1,661			1,928			1,946
Total allowance for credit losses	$	27,633		$	27,367		$	27,145		$	27,198		$	26,626
Total allowance for credit losses/total loans		1.07	%		1.07	%		1.07	%		1.06	%		1.05	%
Adjusted credit losses with accretable yield/total loans		1.08	%		1.08	%		1.10	%		1.10	%		1.11	%
Net charge-offs:
Quarter-to-date	$	285		$	4		$	68		$	15		$	55
Year-to-date	$	285		$	142		$	138		$	70		$	55
Net charge-offs to average loans
Quarter-to-date		0.01	%		0.00	%		0.00	%		0.00	%		0.00	%
Year-to-date		0.01	%		0.01	%		0.01	%		0.00	%		0.00	%
Nonperforming loans/total loans		0.17	%		0.12	%		0.11	%		0.10	%		0.76	%
Allowance for credit losses/nonperforming loans		586.38	%		826.70	%		879.37	%		1016.08	%		127.28	%
NPA coverage ratio		586.38	%		826.70	%		879.37	%		1016.08	%		127.28	%

⁽¹⁾Includes carrying value adjustments of $1.7 million as of March 31, 2025, $1.1 million as of December 31, 2024, $3.0 million as of September 30, 2024, $612 thousand as of June 30, 2024, and $969 thousand as of March 31, 2024 related to interest rate swaps associated with fixed rate loans

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
(in thousands of dollars, except percentages)


	For the Three Months Ended					For the Three Months Ended
	March 31, 2025					March 31, 2024
Interest Earning Assets:	Average Balance		Interest/Dividends		Annualized Yield/Rate	Average Balance		Interest/Dividends		Annualized Yield/Rate
Loans	$	2,578,531	$	37,072	5.75%	$	2,577,114	$	35,200	5.46%
Taxable investment securities		458,519		2,739	2.39%		384,928		1,686	1.75%
Tax-exempt investment securities		18,310		78	2.16%		21,109		86	2.06%
Fed funds sold & other		105,770		1,113	4.21%		110,388		1,682	6.09%
Total Interest Earning Assets		3,161,130	$	41,002	5.19%		3,093,539	$	38,654	5.00%

Nonearning Assets		166,630					159,240

Total Assets	$	3,327,760				$	3,252,779

Interest Bearing Liabilities:
Savings deposits	$	1,543,665	$	8,564	2.22%	$	1,443,530	$	9,407	2.61%
Other time deposits		627,498		5,424	3.46%		650,580		5,872	3.61%
Other borrowed money		245,734		2,550	4.15%		263,280		2,689	4.09%
Fed funds purchased & securities
sold under agreement to repurchase		27,480		271	3.94%		28,458		284	3.99%
Subordinated notes		34,828		284	3.26%		34,712		284	3.27%
Total Interest Bearing Liabilities	$	2,479,205	$	17,093	2.76%	$	2,420,560	$	18,536	3.06%

Noninterest Bearing Liabilities		509,190					514,986

Stockholders’ Equity	$	339,365				$	317,233

Net Interest Income and Interest Rate Spread			$	23,909	2.43%			$	20,118	1.94%

Net Interest Margin					3.03%					2.60%

Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts

FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
(in thousands of dollars, except percentages)

	For the Three Months Ended March 31, 2025												For the Three Months Ended March 31, 2024
	As Reported				Excluding Acc/Amort				Difference				As Reported				Excluding Acc/Amort				Difference
	$		Yield		$		Yield		$		Yield		$		Yield		$		Yield		$			Yield
Interest Earning Assets:
Loans	$	37,072	5.75	%	$	36,468	5.66	%	$	604	0.09	%	$	35,200	5.46	%	$	34,525	5.36	%	$	675		0.10	%
Taxable investment securities		2,739	2.39	%		2,739	2.39	%		–	0.00	%		1,686	1.75	%		1,686	1.75	%		–		0.00	%
Tax-exempt investment securities		78	2.16	%		78	2.16	%		–	0.00	%		86	2.06	%		86	2.06	%		–		0.00	%
Fed funds sold & other		1,113	4.21	%		1,113	4.21	%		–	0.00	%		1,682	6.09	%		1,682	6.09	%		–		0.00	%
Total Interest Earning Assets		41,002	5.19	%		40,398	5.11	%		604	0.08	%		38,654	5.00	%		37,979	4.92	%		675		0.08	%

Interest Bearing Liabilities:
Savings deposits	$	8,564	2.22	%	$	8,564	2.22	%	$	–	0.00	%	$	9,407	2.61	%	$	9,407	2.61	%	$	–		0.00	%
Other time deposits		5,424	3.46	%		5,424	3.46	%		–	0.00	%		5,872	3.61	%		5,872	3.61	%		–		0.00	%
Other borrowed money		2,550	4.15	%		2,547	4.15	%		3	0.00	%		2,689	4.09	%		2,707	4.11	%		(18	)	-0.02	%
Federal funds purchased and
securities sold under agreement to
repurchase		271	3.94	%		271	3.94	%		–	0.00	%		284	3.99	%		284	3.99	%		–		0.00	%
Subordinated notes		284	3.26	%		284	3.26	%		–	0.00	%		284	3.27	%		284	3.27	%		–		0.00	%
Total Interest Bearing Liabilities		17,093	2.76	%		17,090	2.76	%		3	-0.00	%		18,536	3.06	%		18,554	3.07	%		(18	)	-0.01	%

Interest/Dividend income/yield		41,002	5.19	%		40,398	5.11	%		604	0.08	%		38,654	5.00	%		37,979	4.92	%		675		0.08	%
Interest Expense / yield		17,093	2.76	%		17,090	2.76	%		3	-0.00	%		18,536	3.06	%		18,554	3.07	%		(18	)	-0.01	%
Net Interest Spread		23,909	2.43	%		23,308	2.35	%		601	0.08	%		20,118	1.94	%		19,425	1.85	%		693		0.09	%
Net Interest Margin			3.03	%			2.95	%			0.08	%			2.60	%			2.52	%				0.08	%

Company Contact:	Investor and Media Contact:
Lars B. Eller President and Chief Executive Officer Farmers & Merchants Bancorp, Inc. (419) 446-2501 leller@fm.bank	Andrew M. Berger Managing Director SM Berger & Company, Inc. (216) 464-6400 andrew@smberger.com

The MIL Network –

April 29, 2025

MIL-OSI: Amplify Energy Schedules First Quarter 2025 Earnings Release and Conference Call

Source: GlobeNewswire (MIL-OSI)

HOUSTON, April 28, 2025 (GLOBE NEWSWIRE) — Amplify Energy Corp. (“Amplify” or the “Company”) (NYSE: AMPY) announced today that it will report first quarter 2025 financial and operating results after the U.S. financial markets close on May 12, 2025. Management will host a conference call at 10:00 a.m. CT on May 13, 2025, to discuss the Company’s results. Interested parties are invited to participate in the conference call by dialing (888) 999-3182 (Conference ID: AEC1Q25) at least 15 minutes prior to the start of the call. A telephonic replay will be available for fourteen days following the call by dialing (800) 654-1563 and providing the Access Code: 52458798. A transcript and a recorded replay of the call will also be available on our website after the call.

About Amplify Energy

Amplify Energy Corp. is an independent oil and natural gas company engaged in the acquisition, development, exploitation and production of oil and natural gas properties. Amplify’s operations are focused in Oklahoma, the Rockies (Bairoil), federal waters offshore Southern California (Beta), East Texas / North Louisiana, and the Eagle Ford (Non-op). For more information, visit www.amplifyenergy.com.

Investor Relations Contacts

Jim Frew — SVP & Chief Financial Officer
(832) 219-9044
jim.frew@amplifyenergy.com

Michael Jordan — Director, Finance and Treasurer
(832) 219-9051
michael.jordan@amplifyenergy.com

The MIL Network –

April 29, 2025

MIL-OSI: WTT Press Conference Introduces New Concept for Competitive Trading’s Future

Source: GlobeNewswire (MIL-OSI)

KUALA LUMPUR, Malaysia, April 28, 2025 (GLOBE NEWSWIRE) — The World Trading Tournament (WTT) officially launched with a press conference and networking event at Sol 40 @ The Met, introducing an innovative concept that gamifies financial trading through an esports-inspired tournament structure.

WTT’s Vision for a Connected Trading Ecosystem

The evening began with an engaging welcome speech by Mr. Arthur, CEO of WTT, who shared the vision behind WTT: a platform designed to democratize access to trading and reimagine it as a community-driven sport. “We believe trading is more than numbers and screens. It’s strategy, discipline, and skill. Now, it’s a tournament anyone can join,” said Mr. Arthur.

A panel discussion followed, featuring industry leaders from the financial and fintech sectors:

Mr. Ariff Bunaya, Head of Official Channel (SEA Region), WikiFX
Mr. Wags Ng, CEO, The Firm Capital
Mr. Zamrim Bin Arifin, Regional Partner, AIMS Group

Business Background with WTT

The panel explored trends in financial gamification, the evolving mindset of traders, and the need for innovation in empowering both retail and professional traders. Their support further emphasized the potential of WTT to shape the future of competitive trading.

WTT’s mission is to become the world’s most influential trading ecosystem, offering transparent challenges, real rewards, and opportunities for continuous development. The platform aims to inspire and support a global trading community through fair competition and educational resources.

The event also highlighted strategic collaborations with WikiFX, The Firm Capital, and AIMS Group, which will help scale WTT’s visibility across Asia and beyond.

Following the press conference, a networking event provided attendees with an opportunity to connect over refreshments, music, and lively discussions. Three lucky draw winners received exclusive entries to the WTT main tournament.

Supported by key partners WikiFX, The Firm Capital, and AIMS Group, the World Trading Tournament is poised to reshape the competitive trading landscape. As witnessed at the event, this marks just the beginning of a new era in trading. Further announcements will follow.

Media Contact:
Clement Metz
admin@worldtradingtournament.com
World Trading Tournament

Photos accompanying this announcement are available at:

https://www.globenewswire.com/NewsRoom/AttachmentNg/f3c74e6b-6d5a-4fd8-b502-35eabb848549

https://www.globenewswire.com/NewsRoom/AttachmentNg/85be50ce-1cb5-400c-8419-d201b6223ab2

The MIL Network –

April 29, 2025

MIL-OSI Global: What Canada can learn from China on effectively engaging with Africa

Source: The Conversation – Canada – By Isaac Odoom, Assistant Professor, Political Science, Carleton University

Canada’s recent launch of a new Africa Strategy comes at a moment of profound geopolitical change and growing shifts in global development co-operation.

As the western-led order and development model faces increasing scrutiny, countries like China are expanding their reach in Africa by linking development co-operation with commercial and strategic interests.

These approaches resonate with many African governments, while others raise concerns, prompting an important question: How well does Canada’s new strategy respond to these concerns?

Urgent need to diversify

Canada’s pivot toward deeper engagement with Africa is timely. With ongoing tariff threats from the United States and a tense relationship with China, the need to diversify economic partnerships has become urgent.

Africa’s fast-growing population, expanding middle class and continent-wide integration through the African Continental Free Trade Area (AfCFTA) offer real opportunities for commercial engagement.

While historic, Canada’s new Africa Strategy would benefit from a clearer alignment between Africa’s economic prospects and Canada’s domestic economic challenges, such as labour shortages and trade diversification. Without a stronger economic dimension, Canada risks being perceived as all talk and little commitment.

That said, Canada’s emphasis on “mutually beneficial partnerships” — echoing China’s language on Africa — is notable, especially as western donors pull back. However, without a coherent development focus, this principle may be viewed as transactional rather than strategic.

The strategy provides a foundation to build from, but it enters a competitive arena. To build meaningful partnerships in Africa, Canada will need a more focused approach grounded in robust market research, sharper priorities and an informed understanding of Africa’s political and economic realities as well as its geopolitical context.

As a researcher focused on Africa-China relations, I see important lessons Canada can draw from China’s engagement in Africa.

Cautious Canada vs. confident China

Over the past two decades, China has become Africa’s largest trading partner, with trade volumes reaching US$295 billion in 2024.

Backed by state financing, Chinese firms have built roads, ports, railways, dams and telecom infrastructure across the continent. This presence is no accident: for the past 30 years, every Chinese foreign minister’s first trip abroad has been to Africa.

Canada’s footprint, by contrast, remains modest. Canada’s merchandise trade with Africa was about $15 billion in 2024. Canada aspires to become a serious economic partner, but its commercial presence in Africa has been limited.

Notably, while China is often criticized in western media, its image in Africa is more positive. Many African leaders and citizens see China as a pragmatic partner that delivers visible infrastructure and investment.

China’s positioning as a fellow developing country also contrasts sharply with western models that often carry patronizing overtones. China’s readiness to finance large-scale projects in Africa with limited political strings attached has earned good will, even as concerns rightly persist about transparency, debt and governance.

Emphasizing Canada’s differences

Canada should take these dynamics seriously. The narrative of “countering China” in Africa, often promoted by western governments, is ineffective. It overlooks African agency, reduces the continent to a site of great power rivalry and fails to acknowledge that African governments are actively pursuing their choice of partners, instead of a single partner of choice.

Rather than compete with China, Canada can be different. While Chinese infrastructure projects often align with African priorities, my own work on Chinese engagement in Ghana’s energy projects shows that these projects are often negotiated behind closed doors, with few accountability mechanisms and scant transparency in financing. These gaps create space for Canada to offer a distinct and credible alternative.

Canada’s approach can be different, but it should be no less strategic. It may not match China in scale, but it can offer commercial partnerships rooted in transparency, accountability and collaboration with partners, including those from China.

Many African governments and civil society entities are calling for exactly this kind of engagement, particularly as citizens demand greater scrutiny over foreign investment. By focusing on responsible business practices, labour standards, environmental safeguards and good governance, Canada can develop a values-based model of economic engagement.

Despite this potential, Canada’s new Africa Strategy lacks financial commitment. Canada’s 2022 Indo-Pacific Strategy was backed by a $2.3 billion envelope. The Africa Strategy’s success will ultimately depend on its ability to mobilize concrete resources and sustained engagement.

The strategy rightly points to Africa’s economic potential, but stronger links to Canada’s domestic priorities, such as a workforce strategy, a trade road map and implementation tools, would enhance its impact.

References to the AfCFTA are promising, but Canadian businesses need clearer guidance and support. Realizing the strategy’s goals will require measurable targets, dedicated programming and sustained investment.

A different kind of engagement

Canada’s past engagement in Africa has been rooted in diplomacy, development co-operation and peacekeeping. These remain valuable, but today’s African leaders are also seeking trade, investment and private-sector partnerships.

To become a trusted economic partner, Canada should engage with purpose by introducing targeted financing tools — such as credit lines or investment guarantees — to help Canadian businesses manage risk and seize opportunities aligned with AfCFTA.

It should also focus on strategic sectors where it already has strengths, like clean energy, health innovation, fintech, agri-business and infrastructure.

By investing in robust research and in dialogue with the African diaspora, business leaders and governance institutions, Canada strengthens commercial ties while prioritizing transparency, accountability and collaboration. Co-operation in innovation (for example, joint research on climate-smart agriculture or vaccines) could also yield benefits for both sides.

In an increasing multipolar environment, Africa is not waiting for Canada. It’s assessing and comparing competing external partners. Canada’s ability to position itself as a viable alternative depends not on replicating China’s scale, but on seeing Africa as a true partner and offering mutual partnerships that appeal to Africans and Canadian alike.

The new Africa Strategy sets an important tone for renewed engagement, but its success will depend on real investment and implementation, which so far lacks dedicated funding. Filling these gaps should be the next step, regardless of who wins Monday’s election.

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

– ref. What Canada can learn from China on effectively engaging with Africa – https://theconversation.com/what-canada-can-learn-from-china-on-effectively-engaging-with-africa-252894

MIL OSI – Global Reports –

April 29, 2025

MIL-OSI: Digital Asset Acquisition Corp. Announces Pricing of $150 Million Initial Public Offering

Source: GlobeNewswire (MIL-OSI)

PRINCETON, NJ, April 28, 2025 (GLOBE NEWSWIRE) — Digital Asset Acquisition Corp. (the “Company”) today announced the pricing of its initial public offering of 15,000,000 units at a price of $10.00 per unit. The units will be listed on The Nasdaq Global Market (“Nasdaq”) and are expected to trade under the ticker symbol “DAAQU” beginning on April 29, 2025. Each unit consists of one Class A ordinary share and one-half of one redeemable warrant, with each whole warrant exercisable to purchase one Class A ordinary share at a price of $11.50 per share, subject to certain adjustments. Only whole warrants will be exercisable. Once the securities comprising the units begin separate trading, the Class A ordinary shares and warrants are expected to be listed on Nasdaq under the symbols “DAAQ” and “DAAQW,” respectively. The offering is expected to close on April 30, 2025.

Digital Asset Acquisition Corp. is a blank check company formed for the purpose of effecting a merger, amalgamation, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. While the Company may pursue an initial business combination in any industry, sector or geographic region, it intends to target opportunities and companies that are in the digital asset and cryptocurrency sectors.

Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC, is acting as the lead book-running manager for the offering and Clear Street LLC is acting as joint book-runner for the offering. The Company has granted the underwriters a 45-day option to purchase up to an additional 2,250,000 units at the initial public offering price to cover over-allotments, if any.

A registration statement relating to these securities was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on April 28, 2025. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The offering is being made only by means of a prospectus. Copies of the prospectus may be obtained, when available, from Cohen & Company Capital Markets, 3 Columbus Circle, 24th Floor, New York, NY 10019, Attention: Prospectus Department, or by email at: capitalmarkets@cohencm.com.

FORWARD-LOOKING STATEMENTS

This press release contains statements that constitute “forward-looking statements,” including with respect to the proposed initial public offering and the anticipated use of the net proceeds from the offering. No assurance can be given that the offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated, or that the Company will ultimately complete a business combination transaction. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including those set forth in the Risk Factors section of the Company’s registration statement and preliminary prospectus for the Company’s offering filed with the SEC. Copies are available on the SEC’s website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

CONTACT

Peter Ort
Principal Executive Officer and Co-Chairman
Digital Asset Acquisition Corp.
pete@curaleaassociates.com

The MIL Network –

April 29, 2025

MIL-OSI: Capital Bancorp, Inc. Announces Strong First Quarter Results and Successful IFH Conversion; Continued Strong Organic Loan and Deposit Growth; NIM and Fee Income Drives Robust Returns

Source: GlobeNewswire (MIL-OSI)

First Quarter 2025 Highlights

Net Income of $13.9 million, or $0.82 per share, and return on average assets (“ROA”) of 1.75%
- Core net income⁽¹⁾ of $14.9 million, or $0.88 per share, and core ROA⁽¹⁾ of 1.87%
Book value per common share of $22.19 at March 31, 2025, increased $0.87 compared to 4Q 2024, and increased $3.51 when compared to 1Q 2024.
- Tangible Book Value Per Share⁽¹⁾ of $19.81, increased 3.7% (not annualized), or $0.71⁽²⁾ as compared to 4Q 2024, and increased 6.0%, or $1.13 compared to 1Q 2024
Return on average equity (“ROE”) of 15.56%, and return on average tangible common equity (“ROTCE”)⁽¹⁾ of 17.57%
- Core ROE⁽¹⁾ of 16.64%, and core ROTCE⁽¹⁾ of 18.77%
Gross Loans grew $48.2 million, or 7.4% (annualized), during 1Q 2025, and growth of $713.9 million year-over-year including $340.4 million from organic growth and $373.5 million from the IFH acquisition
Total Deposits grew $129.4 million, or 19.0% (annualized), from 4Q 2024. Year-over-year growth of $885.6 million includes $426.7 million from organic growth, and $459.0 million from the acquisition of IFH, or 44.2% from 1Q 2024
- Customer Deposit growth of $154.6 million, or 25.8% (annualized) from 4Q 2024, and $738.5 million year-over-year, or 40.0% from 1Q 2024, including $445.0 million of organic growth, and $293.5 million from the acquisition of IFH
Net Interest Income increased $1.7 million, or 3.9% (not annualized), from 4Q 2024 due to balance sheet growth and purchase accounting accretion, and increased $11.0 million, or 31.5%, year-over-year, primarily driven by strong organic growth and the acquisition of IFH.
Net Interest Margin (“NIM”) of 6.05% increased 18 bps compared to 4Q 2024 and decreased 19 bps compared to 1Q 2024 due to the acquisition of commercial loans from IFH, diluting the impact from OpenSky^™
- Commercial Bank NIM⁽¹⁾ of 4.32% increased by 33 bps and 55 bps, compared to 4Q 2024 and 1Q 2024, respectively
- Net purchase accounting accretion of $1.5 million for 1Q 2025, increased $0.8 million compared to 4Q 2024, accounting for 20 bps of both reported NIM and Commercial Bank NIM⁽¹⁾
Fee Revenue (noninterest income) totaled $12.5 million, or 21.4% of total revenue for 1Q 2025, an increase of $0.6 million, from 4Q 2024 and $6.6 million, from 1Q 2024
The allowance for credit losses to total loans (“ACL Coverage Ratio”) equaled 1.81% at March 31, 2025 down 4 bps from 4Q 2024 and up 32 bps from 1Q 2024, primarily due to of the acquisition of IFH loans. The Commercial Bank ACL Coverage Ratio⁽¹⁾ equaled 1.67% at March 31, 2025, compared to 1.70% at December 31, 2024.
Cash Dividend of $0.10 per share declared by the Board of Directors

________________________
_{⁽¹⁾ As used in this press release, core net income, core ROA, core ROE, ROTCE, core ROTCE, Commercial Bank NIM, Commercial Bank ACL Coverage Ratio, and Tangible Book Value are non–U.S. generally accepted accounting principles (“GAAP”) financial measures. These non-GAAP financial metrics exclude merger-related and other certain one-time non-reoccurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.}
_{⁽²⁾ 4Q 2024 Tangible Book Value restated to $19.10 from previously reported amount of $18.77 due to exclusion of Loan Servicing Assets.}

ROCKVILLE, Md., April 28, 2025 (GLOBE NEWSWIRE) — Capital Bancorp, Inc. (the “Company”) (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the “Bank”), today reported net income of $13.9 million, or $0.82 per diluted share, for 1Q 2025, compared to net income of $7.5 million, or $0.45 per diluted share, for 4Q 2024, and $6.6 million, or $0.47 per diluted share, for 1Q 2024. Core net income⁽³⁾ for 1Q 2025 of $14.9 million, or $0.88 per diluted share, compared to $15.5 million, or $0.92 per diluted share in 4Q 2024.

The Company also declared a cash dividend on its common stock of $0.10 per share. The dividend is payable on May 28, 2025 to shareholders of record on May 12, 2025.

“The first quarter continues the momentum from 2024 and further demonstrates the value of the larger and more diversified franchise resulting from the acquisition of IFH,” said Ed Barry, CEO of the Company and the Bank. “I would like to thank Management and the teams across the organization for a successful integration of IFH in the first quarter. Our continued focused execution of our initiatives and growth objectives will build on a great start to 2025.”

“Our record GAAP earnings per share for the quarter, increased net interest margin, solid loan and deposit growth, and superior return on tangible equity all confirm that we are on the right course for continued growth. We continue to benefit from our diversified earnings platform, both in terms of overall performance and risk mitigation,” said Steven J. Schwartz, Chairman of the Company. “That said, we intend to continue to monitor closely the possible impact on our businesses from emergent governmental policies, with a view towards insulating ourselves, to the extent we can, from the effects of such policies, including interest rate and price volatility and heightened economic uncertainty.”

Reconciliation of GAAP Net Income to Core (Non-GAAP) Net Income
The following table provides a reconciliation of the Company’s net income under GAAP to Core net income (non-GAAP) results excluding merger-related expenses and other one-time non-recurring transactions.

	First Quarter 2025								Fourth Quarter 2024
^{(in thousands, except per share data)}	Income Before Income Taxes		Income Tax Expense		Net Income		Diluted Earnings per Share		Income Before Income Taxes		Income Tax Expense		Net Income		Diluted Earnings per Share
GAAP Net Income	$	18,297	$	4,365	$	13,932	$	0.82	$	10,776	$	3,243	$	7,533	$	0.45
Add: Merger-Related Expenses		1,266		302		964				2,615		464		2,151
Add: Non-recurring Equity and Debt Investment Write-Down		—		—		—				2,620		—		2,620
Add: Initial IFH ACL Provision		—		—		—				4,194		1,025		3,169
Core Net Income⁽¹⁾	$	19,563	$	4,667	$	14,896	$	0.88	$	20,205	$	4,732	$	15,473	$	0.92

^{Note: The income tax expense reflects the non-deductibility of certain merger-related expenses.}

________________________
_{¹ As used in this press release, core net income is a non-GAAP financial measure. This non-GAAP financial metric excludes merger-related and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.}

First Quarter 2025 Results

Earnings Summary
Net income of $13.9 million, or $0.82 per diluted share, compared to net income of $7.5 million, or $0.45 per diluted share, for 4Q 2024, and $6.6 million or $0.47 per diluted share, for 1Q 2024. 1Q 2025 core net income⁽⁴⁾ of $14.9 million, or $0.88 per diluted share, compared to 4Q 2024 of $15.5 million, or $0.92 per diluted share.

Net interest income of $46.0 million increased $1.7 million, or 3.9% (not annualized), compared to 4Q 2024, and increased $11.0 million, or 31.5% year-over-year.
- Interest income of $62.8 million increased $1.1 million, or 1.7% (not annualized), over 4Q 2024, and increased $14.4 million, or 29.8%, year-over-year. The increase quarter-over-quarter was driven by increases of $1.1 million from net purchase accounting accretion, $0.7 million from interest-bearing deposits held at other financial institutions, and $0.3 million from investments held for sale, partially offset by a decrease in loan interest income of $1.1 million due to rate and portfolio mix, while the increase year-over year was primarily driven by organic growth and the acquisition of IFH.
  - Interest income included $0.4 million from net purchase accounting accretion in 1Q 2025 compared to $0.7 million from net purchase accounting amortization in 4Q 2024. There was no related purchase accounting accretion or amortization during 1Q 2024.
- Interest expense of $16.7 million decreased $0.7 million, or 3.8% (not annualized) compared to 4Q 2024, and increased $3.4 million, or 25.1%, year-over-year. The decrease quarter-over-quarter was primarily due to a decrease in borrowed funds partially offset by lower net purchase accounting accretion, and the increase year-over-year was driven by organic growth and the acquisition of IFH.
  - Interest expense included $1.1 million from net purchase accounting accretion in 1Q 2025 compared to $1.4 million from net purchase accounting accretion in 4Q 2024. There was no related purchase accounting accretion or amortization during 1Q 2024.
The provision for credit losses was $2.2 million, a decrease of $5.6 million from 4Q 2024. The decrease over the prior quarter was primarily driven by the recognition of the Initial IFH ACL Provision of $4.2 million in 4Q 2024, and a $2.0 million lower provision from the commercial loan portfolio partially offset by an additional $0.6 million from OpenSky^™ provision in the current quarter. Net charge-offs totaled $2.4 million, or 0.38% of portfolio loans (annualized), including $2.3 million from OpenSky^™ loans. By comparison net charge-offs for 4Q 2024 totaled $2.4 million, or 0.37% of portfolio loans (annualized), including $2.1 million from OpenSky^™ loans. At March 31, 2025, the ACL Coverage Ratio was 1.81%, down 4 bps from the ratio of 1.85% at December 31, 2024, due to the payoff of certain purchase credit deteriorated (“PCD”) loans acquired from IFH, during the quarter. The provision for credit losses decreased $0.5 million, year-over-year (1Q 2024) primarily from lower commercial loan portfolio provision of $0.7 million, offset by slightly higher provision for OpenSky^™ of $0.2 million, while the ACL Coverage Ratio increased 32 bps year-over-year driven by the acquisition of IFH.

________________________
_{¹ As used in this press release, core net income is a non-GAAP financial measure. This non-GAAP financial metric excludes merger-related and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.}

Earnings Summary (Continued)

Noninterest income of $12.5 million increased $0.6 million compared to 4Q 2024 and increased $6.6 million year-over-year primarily due to the contributions made by the businesses IFH brought to the merged entity. Core fee revenue⁽⁵⁾ of $12.5 million decreased $2.0 million, as a result of $1.2 million lower government lending revenue, $0.8 million lower SBIC investment income, $0.5 million lower loan servicing, $0.4 million lower government loan servicing revenue (Windsor), offset by a loan termination fee of $0.7 million during 1Q 2025.
Noninterest expense of $38.1 million increased $0.5 million compared to 4Q 2024 and $8.6 million compared to 1Q 2024. Core noninterest expense⁽¹⁾ of $36.8 million increased $1.9 million compared to 4Q 2024 and $8.0 million compared to 1Q 2024. Core comparisons include:
- Salaries and employee benefits expenses increased $1.6 million from 4Q 2024, primarily the result of $0.7 million lower deferred expenses related to loan production, $0.6 million from the seasonality of payroll related taxes, and $0.2 million in employee benefits.
- Marketing expenses increased $0.7 million from 4Q 2024, primarily due to additional OpenSky^™ advertising-related expenses due to seasonality.
- Regulatory assessment expenses increased $0.4 million from 4Q 2024, primarily due to additional assessments from the acquisition of IFH.
- Expense reduction of $0.8 million from 4Q 2024, includes $0.3 million from loan processing, $0.2 million from other operating, and $0.3 million from other areas.
- Year-over-year expense growth of $8.6 million was primarily due to the acquisition of IFH.
- Estimated total cost synergies resulting from the acquisition of IFH totaled $1.75 million in 1Q 2025, achieving the targeted savings earlier than anticipated.
Income tax expense of $4.4 million, or 23.9% of pre-tax income for 1Q 2025, increased $1.1 million from $3.2 million, or 30.1% of pre-tax income for 4Q 2024. The core effective income tax rate⁽¹⁾ for 1Q 2025 and 4Q 2024 would have been 23.7% and 22.6%, respectively.

________________________
_{¹ As used in this press release, core fee revenue, core noninterest expense, and core effective income tax rate are non-GAAP financial measures. These non-GAAP financial metrics exclude merger-related and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.}

Balance Sheet
Total assets of $3.3 billion at March 31, 2025 increased $142.9 million, or 18.1% (annualized), from December 31, 2024. Total assets growth year-over-year of $1.0 billion, or 44.1%, included $559.4 million acquired with the IFH acquisition, net of purchase accounting, and $465.6 million of organic growth.

Cash and cash equivalents of $294.0 million at March 31, 2025 increased $88.7 million from December 31, 2024 due to portfolio growth, and increased $208.8 million year-over-year including $130.9 million from organic growth and $77.8 million from the acquisition of IFH.
Total portfolio loans of $2.68 billion at March 31, 2025 increased $48.2 million, or 7.4% (annualized), from December 31, 2024 and increased $713.9 million year-over-year including $373.5 million from the acquisition of IFH and $340.4 million of organic growth.
- Compared to December 31, 2024, commercial and industrial loans increased $39.8 million and construction real estate loans increased $22.0 million, offset by a $9.1 million decrease in OpenSky^™ loans and a $6.3 million decrease in commercial real estate loans.
- Commercial and industrial loans, and owner-occupied commercial real estate loans totaled 37.9% of total portfolio loans at March 31, 2025, compared to 37.8% at December 31, 2024, and 29.6% at March 31, 2024.
Total deposits of $2.89 billion at March 31, 2025 increased $129.4 million, or 19.0% (annualized), from December 31, 2024, and increased $885.6 million, or 44.2% (annualized) from March 31, 2024. The increase quarter-over-quarter includes $95.7 million of growth in customer money market deposits, $57.6 million of growth in interest-bearing demand accounts, $1.3 million of noninterest-bearing deposits, and $0.7 million of customer time deposits, partially offset by a decrease in brokered time deposits of $25.2 million. The increase year-over-year is driven by $459.0 million from the acquisition of IFH and $426.7 million from organic growth.
- Insured and protected deposits were approximately $2.0 billion as of March 31, 2025 representing 70.4% of the Company’s deposit portfolio.
- Low-and-no interest bearing deposits of $1.1 billion, or 38.8% of deposits, increased $58.2 million, or 22.2% (annualized) from December 31, 2024, and increased $257.2 million, or 29.8% year-over-year, including $157.4 million of organic growth, and $91.5 million from the acquisition of IFH.
The average portfolio loans-to-deposit ratio was 95.15% for the three months ended March 31, 2025, compared to 99.27% from 4Q 2024, and 98.46% from 1Q 2024.
The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $213.5 million, or 6.4% of total assets, an effective duration of 3.0 years, with U.S. Treasury Securities representing 56% of the overall investment portfolio at March 31, 2025. The accumulated other comprehensive income (loss) on the investment securities portfolio decreased $2.3 million during the quarter to negative $9.2 million after-tax as of March 31, 2025, which represents 2.5% of total stockholders’ equity. The Company does not have a held-to-maturity investment securities portfolio.
Liquidity – The Company maintains stable and reliable sources of available borrowings, generally consistent with prior quarter. Sources of available borrowings at March 31, 2025 totaled $820.9 million, compared to $803.0 from 4Q 2024. During 1Q 2025 available collateralized lines of credit of $625.4 million, unsecured lines of credit with other banks of $76.0 million and unpledged investment securities available as collateral for potential additional borrowings of $119.5 million.
Capital Positions – As of March 31, 2025, the Company reported a Common Equity Tier-1 capital ratio of 13.33%, compared to 13.74% at December 31, 2024. At March 31, 2025, the Company and the Bank maintain regulatory capital ratios that exceed all capital adequacy requirements.

Financial Metrics
Net Interest Margin – Net interest margin of 6.05% for the three months ended March 31, 2025, increased 18 bps compared to the prior quarter, and decreased 19 bps year-over-year. Commercial Bank net interest margin⁽¹⁾, of 4.32% increased 33 bps compared to the prior quarter, and increased 55 bps year-over-year. Net purchase accounting accretion for 1Q 2025 was 20 bps for NIM and Commercial Bank NIM⁽¹⁾.

The average yield on interest earning assets of 8.24% increased 7 bps compared to the prior quarter, due to portfolio mix, and decreased 39 bps year-over-year primarily due to the acquisition of commercial loans diluting the impact from OpenSky^™. The Commercial Bank Loan Yield⁽¹⁾ of 7.14% for 1Q 2025, increased 16 bps 4Q 2024, and increased 18 bps year-over-year.
The total cost of deposits of 2.42% for 1Q 2025 decreased 8 bps compared to the prior quarter due to rate and mix shift and decreased 22 bps year-over-year. The total cost of interest-bearing deposits decreased 9 bps quarter-over-quarter, and 54 bps year-over-year, to 3.37% for 1Q 2025 due to rate environment and product mix.
Net purchase accounting accretion of $1.5 million during 1Q 2025, increased $0.8 million from 4Q 2024. There was no related purchase accounting accretion or amortization during 1Q 2024.

Efficiency Ratios – The efficiency ratio was 64.9% for the three months ended March 31, 2025, compared to 66.7% for the three months ended December 31, 2024 and 72.0% for the three months ended March 31, 2024. The core efficiency ratio⁽⁶⁾ was 62.8%, for the three months ended March 31, 2025. The core efficiency ratio⁽¹⁾ was 59.3% for the three months ended December 31, 2024, and 70.2% for the three months ended March 31, 2024.

Credit Metrics and Asset Quality – The ACL Coverage Ratio equaled 1.81% at March 31, 2025, a decrease of 4 bps from December 31, 2024, and an increase of 32 bps year-over-year driven by the acquisition of IFH.

Nonperforming assets increased 27 bps to 1.21% of total assets at March 31, 2025 compared to December 31, 2024, and increased 59 bps year-over-year. Total nonaccrual loans at March 31, 2025 increased $10.2 million to $40.5 million compared to December 31, 2024, and increased $26.1 million year-over-year, mainly due to the acquisition of IFH. At March 31, 2025, special mention loans totaled $63.0 million, or 2.4% of total portfolio loans, compared to $60.0 million, or 2.3% of total portfolio loans, at December 31, 2024, and $27.5 million, or 1.4% of total portfolio loans, at March 31, 2024. At March 31, 2025, substandard loans totaled $45.7 million, or 1.7% of total portfolio loans, compared to $48.4 million, or 1.8% of total portfolio loans, at December 31, 2024 and $14.1 million, or 0.7% of total portfolio loans, at March 31, 2024.

________________________
_{¹ As used in this press release, Commercial Bank NIM, Commercial Bank Loan Yield, and core efficiency ratio are non-GAAP financial measures. These non-GAAP financial metrics exclude merger-related and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.}

Financial Metrics (Continued)
Performance Ratios – ROA, ROE, ROTCE were 1.75%, 15.56%, and 17.57% respectively, for the three months ended March 31, 2025, compared to 0.96%, 8.50%, and 9.33%⁽¹⁾ respectively, for the three months ended December 31, 2024. For the three months ended March 31, 2024, ROA, ROE, and ROTCE were 1.15%, 10.19%, and 10.19%, respectively. As of March 31, 2024, the Company did not have goodwill or other intangible assets.

Core ROA⁽²⁾, core ROE⁽²⁾, and core ROTCE⁽²⁾ for the three months ended March 31, 2025 were 1.87%, 16.64%, and 18.77% respectively. Core ROA⁽²⁾, core ROE⁽²⁾, and core ROTCE⁽²⁾ for the three months ended December 31, 2024, were 1.97%, 17.46%, and 18.91%⁽¹⁾, respectively. Core ROA⁽²⁾, core ROE⁽²⁾, and core ROTCE⁽²⁾ for the three months ended March 31, 2024 were 1.24%, 11.03%, and 11.03%, respectively.

Book Value and Tangible Book Value – Book value per common share of $22.19 at March 31, 2025, increased $0.87 when compared to December 31, 2024, and increased $3.51 when compared to March 31, 2024. Tangible book value per common share⁽²⁾ increased $0.71⁽³⁾, or 3.7%, to $19.81 at March 31, 2025 when compared to December 31, 2024, and increased $1.13, or 6.0%, when compared to March 31, 2024. Tangible book value was impacted by the purchase accounting adjustments required as part of the IFH acquisition. Therefore, tangible book value per share⁽¹⁾ was equal to book value per share for periods prior to 4Q 2024.

____________
_{¹ Core ROTCE and core ROTCE for the three months ended December 31, 2024 were restated to 9.33% and 18.91%, respectively, from 9.47% and 19.19%, due to exclusion of Loan Servicing Assets.}
_{² As used in this press release, core ROA, core ROE, ROTCE, core ROTCE, and Tangible Book Value are non-GAAP financial measures. These non-GAAP financial metrics exclude merger-related and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.}
_{³ 4Q 2024 Tangible Book Value restated to $19.10 from previously reported amount of $18.77 due to exclusion of Loan Servicing Assets.}

Commercial Bank
Continued Portfolio Loan Growth – Gross portfolio loans increased $55.6 million at March 31, 2025 compared to December 31, 2024, including $39.8 million of commercial and industrial loans, and $22.0 million of construction real estate loans. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.

Net Interest Income – Interest income of $48.2 million increased $2.1 million from the prior quarter, driven by loan growth and higher loan yields. Interest expense of $16.6 million decreased $0.6 million, resulting from a decrease in the average balance of borrowings in 1Q 2025.

Credit Metrics – Nonperforming assets, comprised solely of nonaccrual loans, increased 27 bps to 1.21% of total assets at March 31, 2025 compared to December 31, 2024. Total nonaccrual loans at March 31, 2025 increased to $40.5 million compared to $30.2 million at December 31, 2024.

Classified and Criticized Loans – At March 31, 2025, special mention loans totaled $63.0 million, or 2.4% of total portfolio loans, compared to $60.0 million, or 2.3% of total portfolio loans, at December 31, 2024. At March 31, 2025, substandard loans totaled $45.7 million, or 1.7% of total portfolio loans, compared to $48.4 million, or 1.8% of total portfolio loans, at December 31, 2024.

OpenSky^™Accounts – During 1Q 2025, the number of credit card accounts of 563.7 thousand increased by 11.2 thousand, or 2.0% (not annualized) from December 31, 2024, and increased 36.8 thousand, or 7.0% year-over-year.

Loan and Deposit Balances – Loan balances, net of reserves, of $118.7 million at March 31, 2025 decreased by $9.1 million, or 28.7% (annualized), compared to December 31, 2024. Corresponding deposit balances of $168.8 million at March 31, 2025 increased $2.4 million, or 6.0% (annualized), compared to December 31, 2024. Gross unsecured loan balances of $39.0 million at March 31, 2025 decreased $3.4 million, or 32.9% (annualized), compared to $42.4 million at December 31, 2024, and increased $10.5 million year-over-year.

Revenues – Total revenue of $18.2 million decreased $1.0 million from the prior quarter. Interest income of $14.4 million decreased $1.0 million from the prior quarter. Average OpenSky^™ credit card loan balances, net of reserves and deferred fees of $118.7 million for 1Q 2025, decreased $2.3 million, or 1.9% (not annualized), compared to the prior quarter. Noninterest income of $3.7 million remained generally consistent compared to the prior quarter.

Noninterest Expense – Total noninterest expense of $13.3 million decreased $0.7 million, primarily related to advertising related expenses due to seasonality.

OpenSky^™Credit – Portfolio credit metrics continue to be generally consistent with modeled expectations during 1Q 2025. The provision for credit losses of $1.8 million increased $0.6 million when compared to the prior quarter. OpenSky’s unsecured loan product continues to be offered exclusively to current and former secured card customers in order to retain customer who have successfully improved their credit profiles. Unsecured loans have been offered by OpenSky since the fourth quarter of 2021 and have performed according to management expectations over that time period.

Capital Bank Home Loans
Originations of loans held for sale totaled $65.8 million during 1Q 2025, with $54.1 million of mortgage loans sold resulting in a gain on sale of loans of $1.7 million, representing a 3.07% of gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $90.0 million during 4Q 2024, with $77.4 million of mortgage loans sold resulting in a gain on sale of loans of $1.9 million, representing a 2.45% of gain on sale as a percentage of total loans sold.

Windsor Advantage
Gross government loan servicing revenue totaled $4.6 million, including $1.0 million of Capital Bank related servicing fees, during 1Q 2025. Gross government loan servicing revenue totaled $4.6 million, including $0.9 million of Capital Bank related servicing fees, during 4Q 2024. Windsor’s total servicing portfolio was $2.6 billion at March 31, 2025, and $2.5 billion at December 31, 2024.

COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited

	Quarter Ended									1Q25 vs 4Q24					1Q25 vs 1Q24
^{(in thousands, except per share data)}	March 31, 2025			December 31, 2024			March 31, 2024			$ Change			% Change		$ Change			% Change
Earnings Summary
Interest income	$	62,760		$	61,707		$	48,369		$	1,053		1.7	%	$	14,391		29.8	%
Interest expense		16,713			17,380			13,361			(667	)	(3.8	)%		3,352		25.1	%
Net interest income		46,047			44,327			35,008			1,720		3.9	%		11,039		31.5	%
Provision for credit losses		2,246			7,828			2,727			(5,582	)	(71.3	)%		(481	)	(17.6	)%
Provision for credit losses on unfunded commitments		—			122			142			(122	)	(100.0	)%		(142	)	(100.0	)%
Noninterest income		12,549			11,913			5,972			636		5.3	%		6,577		110.1	%
Noninterest expense		38,053			37,514			29,487			539		1.4	%		8,566		29.1	%
Income before income taxes		18,297			10,776			8,624			7,521		69.8	%		9,673		112.2	%
Income tax expense		4,365			3,243			2,062			1,122		34.6	%		2,303		111.7	%
Net income	$	13,932		$	7,533		$	6,562		$	6,399		84.9	%	$	7,370		112.3	%

Pre-tax pre-provision net revenue (“PPNR”) ⁽¹⁾	$	20,543		$	18,726		$	11,493		$	1,817		9.7	%	$	9,050		78.7	%
Core PPNR⁽¹⁾	$	21,809		$	23,961		$	12,205		$	(2,152	)	(9.0	)%	$	9,604		78.7	%

Common Share Data
Earnings per share – Basic	$	0.84		$	0.45		$	0.47		$	0.39		86.7	%	$	0.37		78.7	%
Earnings per share – Diluted	$	0.82		$	0.45		$	0.47		$	0.37		82.2	%	$	0.35		74.5	%
Core earnings per share – Diluted⁽¹⁾	$	0.88		$	0.92		$	0.51		$	(0.04	)	(4.3	)%	$	0.37		72.5	%
Weighted average common shares – Basic		16,666			16,595			13,919
Weighted average common shares – Diluted		16,925			16,729			13,919

Return Ratios
Return on average assets (annualized)		1.75	%		0.96	%		1.15	%
Core return on average assets (annualized)⁽¹⁾		1.87	%		1.97	%		1.24	%
Return on average equity (annualized)		15.56	%		8.50	%		10.19	%
Core return on average equity (annualized)⁽¹⁾		16.64	%		17.46	%		11.03	%
Return on average tangible common equity (annualized)⁽¹⁾		17.57	%		9.33	%		10.19	%
Core return on average tangible common equity (annualized)⁽¹⁾		18.77	%		18.91	%		11.03	%

______________
_{⁽¹⁾ Refer to Appendix for reconciliation of non-GAAP measures.}

COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited (Continued)

	Quarter Ended						Quarter Ended
	March 31,						December 31,		September 30,		June 30,
^{(in thousands, except per share data)}		2025		2024	% Change			2024		2024		2024
Balance Sheet Highlights
Assets	$	3,349,805	$	2,324,238	44.1	%	$	3,206,911	$	2,560,788	$	2,438,583
Investment securities available-for-sale		213,452		202,254	5.5	%		223,630		208,700		207,917
Mortgage loans held for sale		34,656		10,303	236.4	%		21,270		19,554		19,219
Portfolio loans receivable ⁽²⁾		2,678,406		1,964,525	36.3	%		2,630,163		2,107,522		2,021,588
Allowance for credit losses		48,454		29,350	65.1	%		48,652		31,925		30,832
Deposits		2,891,333		2,005,695	44.2	%		2,761,939		2,186,224		2,100,428
FHLB borrowings		22,000		22,000	—	%		22,000		52,000		32,000
Other borrowed funds		12,062		12,062	—	%		12,062		12,062		12,062
Total stockholders’ equity		369,577		259,465	42.4	%		355,139		280,111		267,854
Tangible common equity ⁽¹⁾		329,936		259,465	27.2	%		318,196		280,111		267,854

Common shares outstanding		16,657		13,890	19.9	%		16,663		13,918		13,910
Book value per share	$	22.19	$	18.68	18.8	%	$	21.31	$	20.13	$	19.26
Tangible book value per share ⁽¹⁾	$	19.81	$	18.68	6.0	%	$	19.10	$	20.13	$	19.26
Dividends per share	$	0.10	$	0.08	25.0	%	$	0.10	$	0.10	$	0.08

______________
_{⁽¹⁾ Refer to Appendix for reconciliation of non-GAAP measures.}
_{⁽²⁾ Loans are reflected net of deferred fees and costs.}

Consolidated Statements of Income (Unaudited)
	Three Months Ended
^{(in thousands)}	March 31, 2025		December 31, 2024			September 30, 2024		June 30, 2024		March 31, 2024
Interest income
Loans, including fees	$	58,691	$	58,602		$	50,047	$	48,275	$	45,991
Investment securities available-for-sale		1,861		1,539			1,343		1,308		1,251
Federal funds sold and other		2,208		1,566			1,220		1,032		1,127
Total interest income		62,760		61,707			52,610		50,615		48,369

Interest expense
Deposits		16,512		16,385			13,902		13,050		12,833
Borrowed funds		201		995			354		508		528
Total interest expense		16,713		17,380			14,256		13,558		13,361

Net interest income		46,047		44,327			38,354		37,057		35,008
Provision for credit losses		2,246		7,828			3,748		3,417		2,727
Provision for credit losses on unfunded commitments		—		122			17		104		142
Net interest income after provision for credit losses		43,801		36,377			34,589		33,536		32,139
Noninterest income
Service charges on deposits		258		241			235		200		207
Credit card fees		3,722		3,733			4,055		4,330		3,881
Mortgage banking revenue		1,831		1,821			1,882		1,990		1,453
Government lending revenue		1,096		2,301			—		—		—
Government loan servicing revenue		3,568		3,993			—		—		—
Loan servicing rights (government guaranteed)		472		1,013			—		—		—
Non-recurring equity and debt investment write-down		—		(2,620	)		—		—		—
Other income		1,602		1,431			463		370		431
Total noninterest income		12,549		11,913			6,635		6,890		5,972
Noninterest expenses
Salaries and employee benefits		18,067		16,513			13,345		13,272		12,907
Occupancy and equipment		2,910		2,976			1,791		1,864		1,613
Professional fees		2,112		2,150			1,980		1,769		1,947
Data processing		7,112		7,210			6,930		6,788		6,761
Advertising		1,779		1,032			1,223		2,072		2,032
Loan processing		743		969			615		476		371
Foreclosed real estate expenses, net		1		—			1		—		1
Merger-related expenses		1,266		2,615			520		83		712
Operational losses		903		993			1,008		782		931
Regulatory assessment expenses		889		484			427		553		473
Other operating		2,271		2,572			1,885		1,834		1,739
Total noninterest expenses		38,053		37,514			29,725		29,493		29,487
Income before income taxes		18,297		10,776			11,499		10,933		8,624
Income tax expense		4,365		3,243			2,827		2,728		2,062
Net income	$	13,932	$	7,533		$	8,672	$	8,205	$	6,562


Consolidated Balance Sheets
	(unaudited)			(audited)			(unaudited)			(unaudited)			(unaudited)
^{(in thousands, except share data)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Assets
Cash and due from banks	$	27,836		$	25,433		$	23,462		$	19,294		$	12,361
Interest-bearing deposits at other financial institutions		266,092			179,841			133,180			117,160			72,787
Federal funds sold		59			58			58			57			56
Total cash and cash equivalents		293,987			205,332			156,700			136,511			85,204
Investment securities available-for-sale		213,452			223,630			208,700			207,917			202,254
Restricted investments		7,031			4,479			5,895			4,930			4,441
Loans held for sale		34,656			21,270			19,554			19,219			10,303
Portfolio loans receivable, net of deferred fees and costs		2,678,406			2,630,163			2,107,522			2,021,588			1,964,525
Less allowance for credit losses		(48,454	)		(48,652	)		(31,925	)		(30,832	)		(29,350	)
Total portfolio loans held for investment, net		2,629,952			2,581,511			2,075,597			1,990,756			1,935,175
Premises and equipment, net		15,085			15,525			5,959			5,551			4,500
Accrued interest receivable		19,458			16,664			12,468			12,162			12,258
Goodwill		24,085			21,126			—			—			—
Intangible assets		13,861			14,072			—			—			—
Core deposit intangibles		1,695			1,745			—			—			—
Loan servicing assets		2,244			5,511			—			—			—
Deferred tax asset		15,902			16,670			10,748			12,150			12,311
Bank owned life insurance		44,335			43,956			38,779			38,414			38,062
Other assets		34,062			35,420			26,388			10,973			19,730
Total assets	$	3,349,805		$	3,206,911		$	2,560,788		$	2,438,583		$	2,324,238

Liabilities
Deposits
Noninterest-bearing	$	812,224		$	810,928		$	718,120		$	684,574		$	665,812
Interest-bearing		2,079,109			1,951,011			1,468,104			1,415,854			1,339,883
Total deposits		2,891,333			2,761,939			2,186,224			2,100,428			2,005,695
Federal Home Loan Bank advances		22,000			22,000			52,000			32,000			22,000
Other borrowed funds		12,062			12,062			12,062			12,062			12,062
Accrued interest payable		9,995			9,393			8,503			6,573			6,009
Other liabilities		44,838			46,378			21,888			19,666			19,007
Total liabilities		2,980,228			2,851,772			2,280,677			2,170,729			2,064,773

Stockholders’ equity
Common stock		167			167			139			139			139
Additional paid-in capital		128,692			128,598			55,585			55,005			54,229
Retained earnings		249,925			237,843			232,995			225,824			218,731
Accumulated other comprehensive loss		(9,207	)		(11,469	)		(8,608	)		(13,114	)		(13,634	)
Total stockholders’ equity		369,577			355,139			280,111			267,854			259,465
Total liabilities and stockholders’ equity	$	3,349,805		$	3,206,911		$	2,560,788		$	2,438,583		$	2,324,238

The following tables show the average outstanding balance of each principal category of our assets, liabilities and stockholders’ equity, together with the average yields on our assets and the average costs of our liabilities for the periods indicated. Such yields and costs are calculated by dividing the annualized income or expense by the average daily balances of the corresponding assets or liabilities for the same period.

	Three Months Ended March 31, 2025						Three Months Ended December 31, 2024						Three Months Ended March 31, 2024
	Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾		Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾		Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾
	(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits	$	203,053	$	2,138	4.27	%	$	140,206	$	1,446	4.10	%	$	84,531	$	1,049	4.99	%
Federal funds sold		58		1	6.99			58		—	—			56		1	7.18
Investment securities available-for-sale		235,605		1,861	3.20			236,951		1,539	2.58			233,231		1,251	2.16
Restricted investments		5,761		69	4.86			7,292		120	6.55			4,601		77	6.73
Loans held for sale		9,356		238	10.32			25,614		193	3.00			4,872		83	6.85
Portfolio loans receivable⁽²⁾⁽³⁾		2,634,110		58,453	9.00			2,592,960		58,409	8.96			1,927,372		45,908	9.58
Total interest earning assets		3,087,943		62,760	8.24			3,003,081		61,707	8.17			2,254,663		48,369	8.63
Noninterest earning assets		134,021						117,026						44,571
Total assets	$	3,221,964					$	3,120,107					$	2,299,234

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	242,355		368	0.62		$	257,446		424	0.66		$	183,217		110	0.24
Savings		13,204		18	0.55			13,497		20	0.59			4,841		1	0.08
Money market accounts		869,978		7,399	3.45			763,526		7,131	3.72			682,414		7,136	4.21
Time deposits		859,729		8,727	4.12			847,618		8,810	4.13			449,963		5,586	4.99
Borrowed funds		34,062		201	2.39			97,116		995	4.08			58,963		528	3.60
Total interest-bearing liabilities		2,019,328		16,713	3.36			1,979,203		17,380	3.49			1,379,398		13,361	3.90
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		56,503						58,460						23,820
Noninterest-bearing deposits		783,018						729,907						637,124
Stockholders’ equity		363,115						352,537						258,892
Total liabilities and stockholders’ equity	$	3,221,964					$	3,120,107					$	2,299,234

Net interest spread					4.88	%					4.68	%					4.73	%
Net interest income			$	46,047					$	44,327					$	35,008
Net interest margin⁽⁴⁾					6.05	%					5.87	%					6.24	%

_______________
_{⁽¹⁾Annualized.}
_{⁽²⁾Includes nonaccrual loans.}
_{⁽³⁾For the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, collectively, Commercial Bank Loan Yield was 7.14%, 6.98% and 6.96%, respectively.}
_{⁽⁴⁾For the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, collectively, Commercial Bank Net Interest Margin was 4.32%, 3.99% and 3.77%, respectively.}

The Company’s reportable segments represent business units with discrete financial information whose results are regularly reviewed by management. The four segments include Commercial Banking, Capital Bank Home Loans (the Company’s mortgage loan division), OpenSky^™ (the Company’s credit card division) and Windsor Advantage.

Effective January 1, 2024, the Company allocated certain expenses previously recorded directly to the Commercial Bank segment to the other segments. These expenses are for shared services also consumed by OpenSky^™, CBHL, and Windsor. The Company performs an allocation process based on several metrics the Company believes more accurately ascribe shared service overhead to each segment. The Company believes this reflects the cost of support for each segment that should be considered in assessing segment performance. Historical information has been recast to reflect financial information consistently with the 2024 presentation.

The following schedule presents financial information for the periods indicated. Total assets are presented as of March 31, 2025, December 31, 2024, and March 31, 2024.

Segments

For the three months ended March 31, 2025

^{(in thousands)}

Commercial
Bank

CBHL

OpenSky^™

Windsor
Advantage

Consolidated

Interest income

$

48,164

$

152

$

14,444

$

—

$

62,760

Interest expense

16,649

64

—

16,713

Net interest income

31,515

88

14,444

—

46,047

Provision for credit losses

446

—

1,800

—

2,246

Net interest income after provision

31,069

88

12,644

—

43,801

Noninterest income

2,474

1,736

3,733

4,606

12,549

Noninterest expense⁽¹⁾

18,560

2,531

13,302

3,660

38,053

Net income (loss) before taxes

$

14,983

$

(707

)

$

3,075

$

946

$

18,297

Total assets

$

3,192,327

$

14,092

$

119,636

$

23,750

$

3,349,805

For the three months ended December 31, 2024

^{(in thousands)}

Commercial
Bank

CBHL

OpenSky^™

Windsor
Advantage

Consolidated

Interest income

$

46,061

$

192

$

15,454

$

—

$

61,707

Interest expense

17,249

131

—

17,380

Net interest income

28,812

61

15,454

—

44,327

Provision for credit losses

6,651

—

1,177

—

7,828

Provision for credit losses on unfunded commitments

122

—

122

Net interest income after provision

22,039

61

14,277

—

36,377

Noninterest income

1,928

1,676

3,743

4,566

11,913

Noninterest expense⁽¹⁾

19,872

2,377

12,595

2,670

37,514

Net income (loss) before taxes

$

4,095

$

(640

)

$

5,425

$

1,896

$

10,776

Total assets

$

3,033,792

$

21,691

$

125,913

$

25,515

$

3,206,911

For the three months ended March 31, 2024

^{(in thousands)}

Commercial
Bank

CBHL

OpenSky^™

Windsor
Advantage

Consolidated

Interest income

$

33,365

$

83

$

14,921

$

—

$

48,369

Interest expense

13,320

41

—

13,361

Net interest income

20,045

42

14,921

—

35,008

Provision for credit losses

1,168

—

1,559

—

2,727

Provision for credit losses on unfunded commitments

142

—

142

Net interest income after provision

18,735

42

13,362

—

32,139

Noninterest income

705

1,352

3,915

—

5,972

Noninterest expense⁽¹⁾

13,783

2,105

13,599

—

29,487

Net income (loss) before taxes

$

5,657

$

(711

)

$

3,678

$

—

$

8,624

Total assets

$

2,208,135

$

10,785

$

105,318

$

—

$

2,324,238

________________________
_{⁽¹⁾Noninterest expense includes $6.4 million, $6.3 million, and $6.1 million in data processing expense in OpenSky’s^™ segment for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.}

HISTORICAL FINANCIAL HIGHLIGHTS – Unaudited
	Quarter Ended
^{(in thousands, except per share data)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Earnings:
Net income	$	13,932		$	7,533		$	8,672		$	8,205		$	6,562
Earnings per common share, diluted		0.82			0.45			0.62			0.59			0.47
Net interest margin		6.05	%		5.87	%		6.41	%		6.46	%		6.24	%
Commercial Bank net interest margin⁽²⁾		4.32	%		3.99	%		4.01	%		3.90	%		3.77	%
Return on average assets⁽¹⁾		1.75	%		0.96	%		1.42	%		1.40	%		1.15	%
Return on average equity⁽¹⁾		15.56	%		8.50	%		12.59	%		12.53	%		10.19	%
Efficiency ratio		64.94	%		66.70	%		66.07	%		67.11	%		71.95	%

Balance Sheet:
Total portfolio loans receivable, net deferred fees	$	2,678,406		$	2,630,163		$	2,107,522		$	2,021,588		$	1,964,525
Total deposits		2,891,333			2,761,939			2,186,224			2,100,428			2,005,695
Total assets		3,349,805			3,206,911			2,560,788			2,438,583			2,324,238
Total stockholders’ equity		369,577			355,139			280,111			267,854			259,465
Total average portfolio loans receivable, net deferred fees		2,634,110			2,592,960			2,053,619			1,992,630			1,927,372
Total average deposits		2,768,284			2,611,994			2,091,294			2,010,736			1,957,559
Portfolio loans-to-deposit ratio (period-end balances)		92.64	%		95.23	%		96.40	%		96.25	%		97.95	%
Portfolio loans-to-deposit ratio (average balances)		95.15	%		99.27	%		98.20	%		99.10	%		98.46	%

Asset Quality Ratios:
Nonperforming assets to total assets		1.21	%		0.94	%		0.60	%		0.58	%		0.62	%
Nonperforming loans to total loans		1.51	%		1.15	%		0.73	%		0.70	%		0.73	%
Net charge-offs to average portfolio loans ⁽¹⁾		0.38	%		0.37	%		0.51	%		0.39	%		0.41	%
Allowance for credit losses to total loans		1.81	%		1.85	%		1.51	%		1.53	%		1.49	%
Allowance for credit losses to non-performing loans		119.73	%		160.88	%		206.50	%		219.40	%		204.37	%

Bank Capital Ratios:
Total risk based capital ratio		13.00	%		12.79	%		13.76	%		14.51	%		14.36	%
Tier-1 risk based capital ratio		11.75	%		11.54	%		12.50	%		13.25	%		13.10	%
Leverage ratio		9.27	%		9.17	%		9.84	%		10.36	%		10.29	%
Common Equity Tier-1 capital ratio		11.75	%		11.54	%		12.50	%		13.25	%		13.10	%
Tangible common equity		8.66	%		9.31	%		9.12	%		9.53	%		9.66	%
Holding Company Capital Ratios:
Total risk based capital ratio		15.05	%		15.48	%		16.65	%		16.98	%		16.83	%
Tier-1 risk based capital ratio		13.41	%		13.83	%		14.88	%		15.19	%		15.03	%
Leverage ratio		10.68	%		11.07	%		11.85	%		11.93	%		11.87	%
Common Equity Tier-1 capital ratio		13.33	%		13.74	%		14.78	%		15.08	%		14.92	%
Tangible common equity		9.94	%		11.07	%		10.94	%		10.98	%		11.16	%

_______________
_{⁽¹⁾Annualized.}
_{⁽²⁾Refer to Appendix for reconciliation of non-GAAP measures.}

HISTORICAL FINANCIAL HIGHLIGHTS – Unaudited (Continued)
	Quarter Ended
^{(in thousands, except per share data)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Composition of Loans:
Commercial real estate, non owner-occupied	$	484,399		$	471,329		$	403,487		$	397,080		$	377,224
Commercial real estate, owner-occupied		420,643			440,026			351,462			319,370			330,840
Residential real estate		693,597			688,552			623,684			601,312			577,112
Construction real estate		343,280			321,252			301,909			294,489			290,016
Commercial and industrial		594,331			554,550			271,811			255,686			254,577
Lender finance		23,165			28,574			29,546			33,294			13,484
Business equity lines of credit		3,468			3,090			2,663			2,989			14,768
Credit card, net of reserve⁽²⁾		118,709			127,766			127,098			122,217			111,898
Other consumer loans		2,200			2,089			2,045			1,930			738
Portfolio loans receivable	$	2,683,792		$	2,637,228		$	2,113,705		$	2,028,367		$	1,970,657
Deferred origination fees, net		(5,386	)		(7,065	)		(6,183	)		(6,779	)		(6,132	)
Portfolio loans receivable, net	$	2,678,406		$	2,630,163		$	2,107,522		$	2,021,588		$	1,964,525

Composition of Deposits:
Noninterest-bearing	$	812,224		$	810,928		$	718,120		$	684,574		$	665,812
Interest-bearing demand		296,455			238,881			266,493			266,070			193,963
Savings		12,819			13,488			3,763			4,270			4,525
Money markets		912,418			816,708			686,526			672,455			678,435
Customer time deposits		549,630			548,901			358,300			317,911			302,319
Brokered time deposits		307,787			333,033			153,022			155,148			160,641
Total deposits	$	2,891,333		$	2,761,939		$	2,186,224		$	2,100,428		$	2,005,695

Capital Bank Home Loan Metrics:
Origination of loans held for sale	$	65,815		$	89,998		$	74,690		$	82,363		$	52,080
Mortgage loans sold		54,144			77,399			67,296			66,417			40,377
Gain on sale of loans		1,664			1,897			1,644			1,732			1,238
Purchase volume as a % of originations		90.73	%		90.42	%		90.98	%		96.48	%		97.83	%
Gain on sale as a % of loans sold⁽³⁾		3.07	%		2.45	%		2.44	%		2.61	%		3.07	%
Mortgage commissions	$	545		$	620		$	598		$	582		$	490

OpenSky^™Portfolio Metrics:
Open customer accounts		563,718			552,566			548,952			537,734			526,950
Secured credit card loans, gross	$	81,252		$	87,226		$	89,641		$	90,961		$	85,663
Unsecured credit card loans, gross		38,987			42,430			39,730			33,560			28,508
Noninterest secured credit card deposits		168,796			166,355			170,750			173,499			171,771

_______________
_{⁽³⁾Credit card loans are presented net of reserve for interest and fees.}
_{⁽⁴⁾Gain on sale percentage is calculated as gain on sale of loans divided by mortgage loans sold.}

Appendix

Reconciliation of Non-GAAP Measures

The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.

Core Earnings Metrics	Quarter Ended
^{(in thousands, except per share data)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Net Income	$	13,932		$	7,533		$	8,672		$	8,205		$	6,562
Add: Merger-Related Expenses, net of tax		964			2,151			557			62			538
Add: Non-recurring equity and debt investment write-down		—			2,620			—			—			—
Add: IFH ACL Provision, net of tax		—			3,169			—			—			—
Core Net Income	$	14,896		$	15,473		$	9,229		$	8,267		$	7,100

Weighted Average Common Shares – Diluted		16,925			16,729			13,951			13,895			13,919
Earnings per Share – Diluted	$	0.82		$	0.45		$	0.62		$	0.59		$	0.47
Core Earnings per Share – Diluted	$	0.88		$	0.92		$	0.66		$	0.59		$	0.51

Average Assets	$	3,221,964		$	3,120,107		$	2,437,870		$	2,353,868		$	2,299,234
Return on Average Assets⁽¹⁾		1.75	%		0.96	%		1.42	%		1.40	%		1.15	%
Core Return on Average Assets⁽¹⁾		1.87	%		1.97	%		1.51	%		1.41	%		1.24	%

Average Equity	$	363,115		$	352,537		$	274,087		$	263,425		$	258,892
Return on Average Equity⁽¹⁾		15.56	%		8.50	%		12.59	%		12.53	%		10.19	%
Core Return on Average Equity⁽¹⁾		16.64	%		17.46	%		13.40	%		12.62	%		11.03	%

Net Interest Income (a)	$	46,047		$	44,327		$	38,354		$	37,057		$	35,008
Noninterest Income		12,549			11,913			6,635			6,890			5,972
Total Revenue	$	58,596		$	56,240		$	44,989		$	43,947		$	40,980
Noninterest Expense	$	38,053		$	37,514		$	29,725		$	29,493		$	29,487
Efficiency Ratio⁽²⁾		64.9	%		66.7	%		66.1	%		67.1	%		72.0	%

Noninterest Income	$	12,549		$	11,913		$	6,635		$	6,890		$	5,972
Add: Non-recurring equity and debt investment write-down		—			2,620			—			—			—
Core Fee Revenue (b)	$	12,549		$	14,533		$	6,635		$	6,890		$	5,972
Core Revenue (a) + (b)	$	58,596		$	58,860		$	44,989		$	43,947		$	40,980

Noninterest Expense	$	38,053		$	37,514		$	29,725		$	29,493		$	29,487
Less: Merger-Related Expenses		1,266			2,615			520			83			712
Core Noninterest Expense	$	36,787		$	34,899		$	29,205		$	29,410		$	28,775
Core Efficiency Ratio⁽²⁾		62.8	%		59.3	%		64.9	%		66.9	%		70.2	%

_______________
_{⁽¹⁾Annualized.}
_{⁽²⁾The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).}

Commercial Bank Net Interest Margin	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Commercial Bank Net Interest Income	$	31,515		$	28,812		$	22,676		$	21,223		$	20,045
Average Interest Earning Assets		3,087,943			3,003,081			2,380,946			2,307,070			2,254,663
Less: Average Non-Commercial Bank Interest Earning Assets		128,278			133,401			129,906			119,801			116,197
Average Commercial Bank Interest Earning Assets	$	2,959,665		$	2,869,680		$	2,251,040		$	2,187,269		$	2,138,466
Commercial Bank Net Interest Margin		4.32	%		3.99	%		4.01	%		3.90	%		3.77	%

Commercial Bank Portfolio Loans Receivable Yield	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Portfolio Loans Receivable Interest Income	$	58,453		$	58,409		$	49,886		$	48,143		$	45,908
Less: Credit Card Loan Income		14,148			15,022			15,137			15,205			14,457
Commercial Bank Portfolio Loans Receivable Interest Income	$	44,305		$	43,387		$	34,749		$	32,938		$	31,451
Average Portfolio Loans Receivable		2,634,110			2,592,960			2,053,619			1,992,630			1,927,372
Less: Average Credit Card Loans		118,723			120,993			119,458			111,288			110,483
Total Commercial Bank Average Portfolio Loans Receivable	$	2,515,387		$	2,471,967		$	1,934,161		$	1,881,342		$	1,816,889
Commercial Bank Portfolio Loans Receivable Yield		7.14	%		6.98	%		7.15	%		7.04	%		6.96	%

Pre-tax, Pre-Provision Net Revenue (“PPNR”)	Quarter Ended
^{(in thousands)}	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024

Net Income	$	13,932	$	7,533	$	8,672	$	8,205	$	6,562
Add: Income Tax Expense		4,365		3,243		2,827		2,728		2,062
Add: Provision for Credit Losses		2,246		7,828		3,748		3,417		2,727
Add: Provision for Credit Losses on Unfunded Commitments		—		122		17		104		142
Pre-tax, Pre-Provision Net Revenue (“PPNR”)	$	20,543	$	18,726	$	15,264	$	14,454	$	11,493

Core PPNR	Quarter Ended
^{(in thousands)}	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024

Net Income	$	13,932	$	7,533	$	8,672	$	8,205	$	6,562
Add: Income Tax Expense		4,365		3,243		2,827		2,728		2,062
Add: Provision for Credit Losses		2,246		7,828		3,748		3,417		2,727
Add: Provision for Credit Losses on Unfunded Commitments		—		122		17		104		142
Add: Merger-Related Expenses		1,266		2,615		520		83		712
Add: Non-recurring equity and debt investment write-down		—		2,620		—		—		—
Core PPNR	$	21,809	$	23,961	$	15,784	$	14,537	$	12,205

Allowance for Credit Losses to Total Portfolio Loans	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Allowance for Credit Losses	$	48,454		$	48,652		$	31,925		$	30,832		$	29,350
Total Portfolio Loans		2,678,406			2,630,163			2,107,522			2,021,588			1,964,525
Allowance for Credit Losses to Total Portfolio Loans		1.81	%		1.85	%		1.51	%		1.53	%		1.49	%

Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Allowance for Credit Losses	$	48,454		$	48,652		$	31,925		$	30,832		$	29,350
Less: Credit Card Allowance for Credit Losses		5,905			6,402			7,339			6,768			5,991
Commercial Bank Allowance for Credit Losses		42,549			42,250			24,586			24,064			23,359
Total Portfolio Loans		2,678,406			2,630,163			2,107,522			2,021,588			1,964,525
Less: Gross Credit Card Loans		115,991			122,928			121,718			116,180			106,572
Commercial Bank Portfolio Loans		2,562,415			2,507,235			1,985,804			1,905,408			1,857,953
Commercial Bank Allowance for Credit Losses to Total Portfolio Loans		1.67	%		1.70	%		1.24	%		1.26	%		1.26	%

Nonperforming Assets to Total Assets	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Total Nonperforming Assets	$	40,471		$	30,241		$	15,460		$	14,053		$	14,361
Total Assets		3,349,805			3,206,911			2,560,788			2,438,583			2,324,238
Nonperforming Assets to Total Assets		1.21	%		0.94	%		0.60	%		0.58	%		0.62	%

Nonperforming Loans to Total Portfolio Loans	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Total Nonperforming Loans	$	40,471		$	30,241		$	15,460		$	14,053		$	14,361
Total Portfolio Loans		2,678,406			2,630,163			2,107,522			2,021,588			1,964,525
Nonperforming Loans to Total Portfolio Loans		1.51	%		1.15	%		0.73	%		0.70	%		0.73	%

Net Charge-Offs to Average Portfolio Loans	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Total Net Charge-Offs	$	2,444		$	2,427		$	2,655		$	1,935		$	1,987
Total Average Portfolio Loans		2,634,110			2,592,960			2,053,619			1,992,630			1,927,372
Net Charge-Offs to Average Portfolio Loans, Annualized		0.38	%		0.37	%		0.51	%		0.39	%		0.41	%

Tangible Book Value per Share	Quarter Ended
^{(in thousands, except share and per share data)}	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024

Total Stockholders’ Equity	$	369,577	$	355,139	$	280,111	$	267,854	$	259,465
Less: Preferred Equity		—		—		—		—		—
Less: Intangible Assets		39,641		36,943		—		—		—
Tangible Common Equity	$	329,936	$	318,196	$	280,111	$	267,854	$	259,465
Period End Shares Outstanding		16,657,168		16,662,626		13,917,891		13,910,467		13,889,563
Tangible Book Value per Share	$	19.81	$	19.10	$	20.13	$	19.26	$	18.68

Return on Average Tangible Common Equity	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Net Income	$	13,932		$	7,533		$	8,672		$	8,205		$	6,562
Add: Intangible Amortization, Net of Tax		199			198			—			—			—
Net Tangible Income	$	14,131		$	7,731		$	8,672		$	8,205		$	6,562
Average Equity		363,115			352,537			274,087			263,425			258,892
Less: Average Intangible Assets		36,896			22,890			—			—			—
Net Average Tangible Common Equity	$	326,219		$	329,647		$	274,087		$	263,425		$	258,892
Return on Average Equity		15.56	%		8.50	%		12.59	%		12.53	%		10.19	%
Return on Average Tangible Common Equity		17.57	%		9.33	%		12.59	%		12.53	%		10.19	%

Core Return on Average Tangible Common Equity	Quarter Ended
^{(in thousands)}	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024

Net Income, as Adjusted	$	14,896		$	15,473		$	9,229		$	8,267		$	7,100
Add: Intangible Amortization, Net of Tax		199			198			—			—			—
Core Net Tangible Income	$	15,095		$	15,671		$	9,229		$	8,267		$	7,100
Core Return on Average Tangible Common Equity		18.77	%		18.91	%		13.40	%		12.62	%		11.03	%

ABOUT CAPITAL BANCORP, INC.
Capital Bancorp, Inc., Rockville, Maryland is a registered bank holding company incorporated under the laws of Maryland. Capital Bancorp has been providing financial services since 1999 and now operates bank branches in four locations in the Washington, D.C., Baltimore, other Maryland markets, one bank branch in Fort Lauderdale, Florida, one bank branch in Chicago, Illinois and one bank branch in Raleigh, North Carolina. Capital Bancorp had assets of approximately $3.3 billion at March 31, 2025 and its common stock is traded in the NASDAQ Global Market under the symbol “CBNK.” More information can be found at the Company’s website www.CapitalBankMD.com under its investor relations page.

FORWARD-LOOKING STATEMENTS
This earnings release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “optimistic,” “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements. Accordingly, we caution you that any such forward-looking statements are not a guarantee of future performance and that actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors. For details on some of the factors that could affect these expectations, see risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K and other periodic and current reports filed with the Securities and Exchange Commission.

While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: changes in general economic, political, or industry conditions; geopolitical concerns, including the ongoing wars in Ukraine and in the Middle East; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market, and monetary fluctuations; volatility and disruptions in global capital and credit markets; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; cybersecurity threats and the cost of defending against them, including the costs of compliance with potential legislation to combat cybersecurity at a state, national, or global level; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; the expected cost savings, synergies and other financial benefits from the acquisition of IFH or any other acquisition the Company has made or may make might not be realized within the expected time frames or at all; the effect of acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; and other factors that may affect our future results.

These forward-looking statements are made as of the date of this communication, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by law.

FINANCIAL CONTACT: Dominic Canuso (301) 468-8848 x1403

MEDIA CONTACT: Ed Barry (240) 283-1912

WEB SITE: www.CapitalBankMD.com

The MIL Network –

April 29, 2025

MIL-OSI: Vesicor Therapeutics, Inc. and Black Hawk Acquisition Corporation Enter into a Business Combination Agreement to Create a Biotechnology Company Advancing p53-based Cancer Therapeutics Delivered Via Microvesicles

Source: GlobeNewswire (MIL-OSI)

Transaction Values Vesicor at a Pre-money Equity Value of $70 million
Business Combination is Expected to be Completed in the Fourth Quarter of 2025

DANVILLE, Calif., April 28, 2025 (GLOBE NEWSWIRE) — Black Hawk Acquisition Corp. (Nasdaq: BKHAU, BKHA, BKHAR), a special purpose acquisition company, (“Black Hawk”) announced the signing of a Business Combination Agreement (“BCA”) on April 26, 2025, with Vesicor Therapeutics, Inc. (“Vesicor”, “Vesicor Therapeutics” or “the Company”), a California-based early development stage biotechnology corporation focused on the development of p53-based cancer therapeutics delivered via precision-engineered microvesicles.

Vesicor Overview

Vesicor was founded in 2008 in San Gabriel, California by Luo Feng, Ph.D. The Company is an early development stage biotechnology company focused on the development of p53-based cancer therapeutics delivered via precision-engineered microvesicles.

The Company’s first product candidate is ecm-RV/p53. This is a genetically engineered cellular microvesicle (“ecm”) non-viral nanoparticle RNA vesicle (“RV”) that is loaded with in vitro transcribed p53 mRNA. Although Vesicor’s ecm-RV/p53 drug candidate is unapproved for use in Japan and the United States, it has been administered to multiple patients in Tokyo, Japan since 2018 under the Japan Medical Practitioner’s Act, also known as Advanced Medical Care B. This mechanism allows unapproved drugs to be used under a physician’s discretion. The Company’s drug candidate has been used in multiple patients with advanced breast, pancreatic, prostate, lung and colorectal cancer. Vesicor believes that its ecm-RV/p53 drug candidate has broad therapeutic potential across a range of solid tumors. The Company intends to begin preclinical testing in the U.S., submit an investigational new drug (“IND”) application to the FDA and then to begin clinical trials, which efforts are expected to commence in 2026.

Mr. Kent Kaufman, Chief Executive Officer of Black Hawk, stated: “Our aim is to identify a company with solid potential to disrupt an entire industry, a talented and credentialed executive team with a proven track record, and good prospects for future growth. We believe that we have found these qualities in Vesicor. We look forward to completing this transaction and working with Vesicor’s management team to help them thrive as a public company while they continue to grow.”

“Our mission is to transform the lives of cancer patients and their families. We are focused on completing preclinical testing in the United States, submitting our IND to the FDA and beginning Phase 1 clinical trials,” stated Luo Feng, Ph.D., Founder and Chief Executive Officer of Vesicor Therapeutics.

“We are excited to partner with Kent and the rest of the Black Hawk team to bring Vesicor to the public markets. We believe that this transaction, if completed, will help facilitate access to the capital markets and will accelerate the validation and deployment of our ecm-RV/p53 drug candidate,” stated Oded Levy, Board Director of Vesicor Therapeutics.

Key Transaction Terms

Under the terms of the BCA, Black Hawk’s wholly-owned subsidiary, BH Merger Sub, Inc., will merge with Vesicor, resulting in Vesicor being the wholly owned subsidiary of Black Hawk, who will continue to be the listed company on the Nasdaq Stock Market and change its name to Vesicor Therapeutics (the “Business Combination” and the transactions in connection with the Business Combination collectively, the “Transaction”). At the effective time of the Transaction, Vesicor’s shareholders and management will receive the right to receive a number of shares of Black Hawk’s common stock equal to the consideration ratio as further specified in the BCA. The shares held by certain Vesicor’s shareholders will be subject to lock-up agreements for a period of six (6) months following the closing of the Transaction, subject to certain exceptions.

The Transaction values Vesicor at a pre-money equity value of $70 million. Existing Vesicor shareholders and management will not receive any cash proceeds as part of the transaction and will roll over 100% of their equity into the combined company.

The Transaction, which has been approved unanimously by the boards of directors of both Black Hawk and Vesicor, is subject to regulatory approvals, the approvals by the shareholders of Black Hawk and Vesicor, respectively, and the satisfaction of certain other customary closing conditions, including, among others, a Form S-4 registration statement under the Securities Act of 1933, of which the proxy statement/prospectus forms a part, being declared effective by the U.S. Securities and Exchange Commission (the “SEC”), and the approval by Nasdaq of the listing application of the combined company. The Business Combination is expected to be completed by the fourth quarter of 2025.

The description of the Business Combination contained herein is only a summary and is qualified in its entirety by reference to the Business Combination Agreement relating to the Business Combination and attachments thereto. A more detailed description of the Transaction and a copy of the Business Combination Agreement will be included in a Current Report on Form 8-K to be filed by Black Hawk with the SEC and will be available on the SEC’s website at www.sec.gov.

Advisors

Celine & Partners, P.L.L.C. and Ogier Global (Cayman) Limited are serving as legal advisors to Black Hawk. PW Richter PLC is serving as a legal advisor to Vesicor.

About Black Hawk Acquisition Corporation

Black Hawk Acquisition Corporation is a blank check company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses.

Participants in the Solicitation

Black Hawk Acquisition Corporation, and its respective directors, executive officers, employees and other persons may be deemed to be participants in the solicitation of proxies from the holders of Black Hawk’s common stock in respect of the proposed Transaction. Information about Black Hawk’s directors, executive officers and their ownership of Black Hawk’s common stock is currently set forth in Black Hawk’s prospectus related to its initial public offering dated March 22, 2024, as modified or supplemented by any Form 10-K, Form 3 or Form 4 filed with the SEC since the date of such filing. Other information regarding the interests of the participants in the proxy solicitation will be included in a registration statement on Form S-4 (as may be amended from time to time) that will include a proxy statement and a registration statement/preliminary prospectus (the “Registration Statement”) pertaining to the proposed Transaction when it becomes available. These documents can be obtained free of charge from the sources indicated below.

No Offer or Solicitation

This press release is not a proxy statement or solicitation of a proxy, consent or authorization with respect to any securities or in respect of the Transaction and does not constitute an offer to sell or the solicitation of an offer to buy any securities of Black Hawk or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended.

Important Information about the Proposed Business Combination and Where to Find It

In connection with the Transaction, Black Hawk will file relevant materials with the SEC, including the Registration Statement. Promptly after the Registration Statement is declared effective, the proxy statement/prospectus will be sent to all Black Hawk shareholders entitled to vote at the special meeting relating to the Transaction. Before making any voting decision, securities holders of Black Hawk are urged to read the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC in connection with the Transaction as they become available because they will contain important information about the Transaction and the parties to the Transaction.

Contacts/Information. Stockholders will also be able to obtain copies of the preliminary proxy statement/prospectus, the definitive proxy statement/prospectus, and other documents filed or that will be filed with the SEC through Black Hawk through the website maintained by the SEC at www.sec.gov, or by directing a request to the contacts mentioned below.

Black Hawk Acquisition Corporation
Kent Louis Kaufman
Chief Executive Officer and Chairman
kent@bhspac.com
Tel: +1(915) 217-4482

Vesicor Therapeutics, Inc.
Luo Feng, Ph.D.
Chief Executive Officer and Founder
lfeng@vesicor.com

Forward-Looking Statements.

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The Black Hawk’s and Vesicor’s actual results may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “might” and “continues,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, the Black Hawk’s and Vesicor’s expectations with respect to future performance and anticipated financial impacts of the Business Combination, the satisfaction of the closing conditions to the Business Combination and the timing of the completion of the Business Combination. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside the control of the Black Hawk, Vesicor and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the Business Combination Agreement relating to the proposed Business Combination; (2) the outcome of any legal proceedings that may be instituted against the Black Hawk or Vesicor following the announcement of the Business Combination Agreement and the transactions contemplated therein; (3) the inability to complete the Business Combination, including due to failure to obtain approval of the shareholders of the Black Hawk or other conditions to closing in the Business Combination Agreement; (4) delays in obtaining or the inability to obtain necessary regulatory approvals required to complete the transactions contemplated by the Business Combination Agreement; (5) the occurrence of any event, change or other circumstance that could give rise to the termination of the Business Combination Agreement or could otherwise cause the transaction to fail to close; (6) the inability to obtain or maintain the listing of the post-acquisition company’s ordinary shares on Nasdaq following the Business Combination; (7) the risk that the Business Combination disrupts current plans and operations as a result of the announcement and consummation of the Business Combination; (8) the ability to recognize the anticipated benefits of the Business Combination, which may be affected by, among other things, competition, the ability of the combined company to grow and manage growth profitably and retain its key employees; (9) costs related to the Business Combination; (10) changes in applicable laws or regulations; (11) the possibility that Vesicor or the combined company, i.e., PubCo, may be adversely affected by other economic, business, and/or competitive factors; and (12) other risks and uncertainties to be identified in the Registration Statement filed by PubCo (when available) relating to the Business Combination, including those under “Risk Factors” therein, and in other filings with the SEC made by the Black Hawk and Vesicor. Black Hawk and Vesicor caution that the foregoing list of factors is not exclusive. Black Hawk and Vesicor caution readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Neither Black Hawk nor Vesicor undertakes or accepts any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, subject to applicable law. The information contained in any website referenced herein is not, and shall not be deemed to be, part of or incorporated into this press release.

The MIL Network –

April 29, 2025

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