China – Page 30 – NewzIntel.com

MIL-OSI USA: Sullivan Chairs CECC Hearing on Chinese Transnational Repression & Political Warfare

US Senate News:

Source: United States Senator for Alaska Dan Sullivan

07.23.25

WASHINGTON—U.S. Senator Dan Sullivan (R-Alaska), the new chair of the Congressional-Executive Commission on China (CECC), today chaired a hearing on the People’s Republic of China’s (PRC) disturbing campaign of transnational political warfare and repression against the people and leaders of Taiwan, and partners of and advocates for Taiwan, including American citizens and others living lawfully in the United States.

“This is transnational repression. It is a coordinated strategy to isolate Taiwan, dominate the global narrative through fear and coercion, and again, not only against Taiwanese citizens, but other citizens, including our own citizens,” said Sen Sullivan. “These threats are multifaceted—AI-generated disinformation; the extraterritorial application of PRC laws; of course, diplomatic pressure on Taiwan’s allies; the public intimidation of democratically elected leaders…Every day, the CCP grows bolder and more aggressive in its threats against Taiwan, the United States and our allies in the Indo-Pacific. We need to call that out, have open hearings like this, and push back against this transnational repression.”

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Click here to watch the full hearing.

The commission heard testimony from Fan Yun, a member of the Legislative Yuan of Taiwan; Rear Admiral Mike Studeman, U.S. Navy (Ret.), former commander of the Office of Naval Intelligence; Peter Mattis, president of the Jamestown Foundation; and Audrye Wong, the Jeane Kirkpatrick Fellow at the American Enterprise Institute and assistant professor of political science and international relations at the University of Southern California.

Sen. Sullivan has long been a leading advocate in the Senate for Taiwan, introducing his comprehensive Sanctions Targeting Aggressors of Neighboring Democracies (STAND) with Taiwan Act in the last two Congresses aimed at deterring a Chinese People’s Liberation Army (PLA) military invasion of Taiwan that the Chinese Communist Party (CCP) dictatorship has threatened for years. Sullivan is expected to reintroduce the legislation in the fall with a strong, bipartisan slate of cosponsors. Sen. Sullivan was announced as the chairman of the CECC for the 119^th Congress on July 14, 2025, serving alongside Rep. Chris Smith (R-N.J.), the CECC co-chair.

Below is a full transcript of Sen. Sullivan’s introductory remarks.

Today’s hearing comes at a pivotal moment. For 75 years, the People’s Republic of China has vowed to bring Taiwan under its control. We have our own Taiwan Relations Act. We have our “One China” policy. However, in recent years, that pressure—not just, by the way, with regard to Taiwanese, but other people, including American citizens—has intensified and globalized with Beijing not only targeting Taiwan across the strait, it’s projecting intimidation across borders, institutions, using political transnational repression as tools of coercion among people across the globe.

The title of this hearing rhymes with major legislation of mine, the STAND with Taiwan Act. That bill, which I’ve introduced in the last two Congresses and will soon be introducing again, has great bipartisan support. Senators Graham, Duckworth and Coons are the top co-sponsors. I would encourage strong bipartisan support with my colleagues here. What that would do is, if there is a military invasion of Taiwan by the Communist Party and the PLA of China, this would trigger punishing, comprehensive sanctions on the Chinese economy and particularly leaders of the Chinese Communist Party—punishing—economic, trade, financial, energy. We all want deterrence in the Taiwan Strait. I think the threat of these massive sanctions might be critical in terms of deterring a cross-Strait invasion of Taiwan by the PLA.

We also need to deal with the here and now of Chinese coercion abroad. Again, this hearing is going to focus on the coercion of Taiwanese citizens. But I want to make sure, and I certainly will be asking questions in my Q-and-A with the witnesses of repression of others—people from Hong Kong, American citizens, which is really unacceptable when that happens by the Chinese Communist Party. They’re good at coercing their own citizens, but they’re not going to, with this Congress, be allowed to coerce Americans or those who are our allies.

These threats are multifaceted—AI-generated disinformation; the extraterritorial application of PRC laws; of course, diplomatic pressure on Taiwan’s allies; the public intimidation of democratically elected leaders. By the way, that’s something the Chinese Communist Party would never do. They never stand for election themselves. They fear their own people because they know they probably wouldn’t get elected if they had to stand for elections. So that makes them nervous when there are people who actually stand for elections, like we do, and go before the people.

The PRC is also attempting to rewrite international norms, distorting UN General Assembly Resolution 2758, and pressuring countries to embrace Beijing’s view that all necessary measures it might use to achieve unification with regard to Taiwan.

Most disturbingly, the PRC has labeled Taiwan’s vice president, who I know well and is a good friend of mine, and other officials as “obstinate Taiwan independence diehards,” threatening them with life imprisonment or worse. It has declared any Taiwanese citizen, including those living abroad, can be punished under PRC law.

In a closed-door meeting earlier this year, senior CCP official Wang Huning reportedly called for a global expansion of these intimidation tactics. According to credible reporting, Wang instructed embassies and security services—hopefully they’re not doing it here in America, but they probably are—to implement “proactive intimidation against so-called radical Taiwanese independence advocates worldwide, including in the United States of America.

These are not abstract threats last year, Czech intelligence uncovered a planned “kinetic operation” by the PRC to intimidate then Vice President-elect Bi-khim on her visit there. Again, she’s a friend of mine—a great person. The PRC is also harassing international media outlets for interviewing Taiwanese leaders. Individuals around the world who criticize Beijing’s Taiwan policy have been doxed and placed under surveillance. This is transnational repression. It is a coordinated strategy to isolate Taiwan, dominate the global narrative through fear and coercion, and again, not only against Taiwanese citizens, but other citizens, including our own citizens.

Every day, the CCP grows bolder and more aggressive in its threats against Taiwan, the United States and our allies in the Indo-Pacific. We need to call that out, have open hearings like this, and push back against this transnational repression.

MIL OSI USA News –

July 24, 2025

MIL-OSI USA: Luján Fights for National Lab Science Funding, Presses Trump Administration to Protect America’s Scientific Innovation and Reverse Course on Cuts to Research and Development Programs

US Senate News:

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

Washington, D.C. – Today, U.S. Senator Ben Ray Luján (D-N.M.), Co-Chair of the Senate National Labs Caucus, called on President Trump to reverse course on proposed reductions in the Fiscal Year 2026 federal budget to research and development programs within the Department of Energy (DOE), including cuts to programs at National Laboratories. In the letter to President Trump, Senator Luján highlights the successful economic impacts by these DOE research and development programs, including our National Laboratories’ critical role in driving global scientific leadership.

Senator Luján wrote, “These proposed changes jeopardize not only our nation’s economic competitiveness but also our national security, energy independence, and capacity for innovation. Slashes to these programs undermine the core principles and opportunities that America promises its citizens: through bold investment in knowledge and innovation, we build a stronger, safer, and more just future.”

“Without adequate support, the United States risks ceding leadership in emerging industries to nations with more consistent and centralized science investment strategies. Slashing funding to these programs is not fiscal responsibility – it is strategic negligence,” continued Senator Luján.

“As a proud and steadfast champion of the groundbreaking innovation coming out of the national labs in my state, I’m constantly reminded of their extraordinary contributions,” concluded Senator Luján.

The full text of the letter is available here and below:

Dear President Trump:

I am writing to express my deep concern regarding the proposed reductions in the Fiscal Year 2026 federal budget to research and development programs within the Department of Energy (DOE), including significant cuts to the Office of Science, the Office of Energy Efficiency and Renewable Energy (EERE), and the Advanced Research Projects Agency – Energy (ARPA–E). These proposed changes jeopardize not only our nation’s economic competitiveness but also our national security, energy independence, and capacity for innovation. Slashes to these programs undermine the core principles and opportunities that America promises its citizens: through bold investment in knowledge and innovation, we build a stronger, safer, and more just future.

The national laboratories are not just the Department of Energy’s research hubs; they are engines of economic empowerment. These nearly 80,000 scientists, engineers, and staff are at the forefront of pioneering technologies in advanced energy systems, life-saving medical isotopes, next-generation manufacturing, and national defense. The proposed 14% reduction to the Office of Science and 74% cut to EERE will have an immediate and destabilizing impact – threatening the continuation of critical research programs, leading to the loss of thousands of skilled jobs. Investments in science ARE investments in American leadership.

Specifically, EERE has been responsible for more than $624 billion in net economic benefits, heavily contributing to U.S. energy bill reductions of over $800 billion since 1980. These cuts will impede 100s of ongoing lab-based projects in clean energy, grid modernization, and industrial decarbonization, while endangering 1,000s of jobs across multiple national laboratories, and undermine a network that has historically returned over $10 in economic output for every dollar of federal R&D investment. We don’t just silence the potential for future discoveries that could deliver heat and power to every corner of the country, we squander the ingenuity of the very Americans who have the knowledge and drive to make it happen.

Similarly, proposed budget reductions would scale back fellowships, internships, and research grants that support tens of thousands of graduate and postdoctoral researchers. Around half of STEM graduate students rely on federal support to complete their training. The elimination of these opportunities would be devastating to early-career researchers and erode our long-term competitiveness, particularly in fields like quantum, biotechnology, and energy.

For decades, DOE’s national laboratories have played a critical role in translating federal research into commercial success. The DOE national labs outperform other agencies in innovation productivity, producing 3.5x more patents per dollar and 1.4x higher licensing rate per patent than the federal agency average. Every year the labs execute 1000s of partnership agreements, including 100s of agreements to commercialize technology. These efforts are part of a larger ecosystem that has enabled the United States to maintain global leadership in critical technologies such as artificial intelligence, biotechnology, advanced computing, and energy efficiency. This innovation culture, rooted in federally funded basic and applied science, has given the United States a durable advantage over strategic competitors, including China, whose state-led investments are rapidly closing the gap.

Programs like ARPA-E, which the budget proposes to cut by 57%, have been instrumental in maintaining this leadership. The agency has funded over 1,000 high-risk projects, resulted in over 700 patents, and attracted over $12 billion in follow-on private investment. Reducing federal investments in ARPA-E and DOE lab commercialization programs could shift the global balance of innovation. Without adequate support, the United States risks ceding leadership in emerging industries to nations with more consistent and centralized science investment strategies. Slashing funding to these programs is not fiscal responsibility – it is strategic negligence.

The United States did not become a global leader in science and technology by retreating from bold investment. We became that leader by making deliberate, courageous decisions to fund basic and applied research, to believe in our academic institutions, and to empower our national laboratories as centers of excellence. At a time when other nations are dramatically increasing their R&D investments, it would be short-sighted and strategically dangerous for the United States to step back.

As a proud and steadfast champion of the groundbreaking innovation coming out of the national labs in my state, I’m constantly reminded of their extraordinary contributions. At Sandia National Laboratories, researchers invented clean rooms, a technology essential to manufacturing microchips that power high performance computing and artificial intelligence, while also revolutionizing hospital operating room safety. Sandia isn’t just refining the economics of LED light bulbs, they’re re-engineering light itself to promote human health and increase agricultural yields. At Los Alamos, during the Human Genome Project, scientists developed GenBank, the genetic sequence database that has become indispensable to modern drug discovery and our understanding of disease. Los Alamos also remains one of the nation’s only sources of critical medical isotopes used in targeted cancer therapies – treatments that can destroy breast cancer cells while sparing healthy tissue. Slashing funding to these transformative institutions isn’t just short-sighted – it’s an assault on the standard of living, health, and opportunity for every American.

America’s scientific capacity is one of its most valuable assets. We must treat it accordingly – with care, with vision, and with the full weight of federal support. I respectfully urge you to reconsider these reductions and restore full funding for DOE research and innovation programs – including ARPA-E, EERE, the Office of Science, the associated workforce, and their commercialization initiatives.

Thank you for your consideration and commitment to the future of American science, security, and prosperity.

Sincerely,

MIL OSI USA News –

July 24, 2025

MIL-OSI USA: Grassley, Fetterman Introduce Bipartisan Bill to Crack Down on Art Market Money Laundering, Terrorist Financing

US Senate News:

Source: United States Senator for Iowa Chuck Grassley

WASHINGTON – Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Sen. John Fetterman (D-Pa.) today introduced the Art Market Integrity Act. The bipartisan legislation would require art dealers and auction houses to comply with existing anti-money laundering and counter-terrorism financing regulations.

“For decades, criminal enterprises have used America’s multibillion-dollar art industry as a personal piggy bank for money laundering schemes, terrorist financing and other nefarious activities. By requiring our nation’s art market to comply with existing anti-money laundering and counter-terrorism financing laws, this bipartisan legislation would keep art, and millions of dollars, out of the wrong hands,” Grassley said.

“Art should be for art-lovers, not terrorists and criminals,” Fetterman said. “For too long, loopholes have allowed Russian criminal kingpins to evade sanctions and terrorists like Hezbollah to funnel money through art deals. I’m grateful to Senators Grassley, Whitehouse, and McCormick for working across the aisle to require art dealers and auction houses to perform basic due diligence. This needs to stop now.”

The Art Market Integrity Act would:

Require art dealers and auction houses to maintain records and report on high-value art market transactions, exempting artists and businesses with under $50,000 in annual art transactions;
Align the United States with international standards adopted by the United Kingdom, European Union, Switzerland and China; and
Protect the United States’ national security, economic integrity and multibillion-dollar art market from criminals, terrorists, cartels and other bad actors.

Grassley and Fetterman are joined by Sens. Dave McCormick (R-Pa.), Sheldon Whitehouse (D-R.I.), Bill Cassidy (R-La.) and Andy Kim (D-N.J.).

Download the full bill text HERE.

Background:

The United States’ art industry is valued at around $25 billion and is the largest of its kind globally. Despite this, our art market is not currently bound by the anti-money laundering and counter-terrorism financing standards set by the Bank Secrecy Act.

In 2024, the Treasury Department identified America’s art market as being particularly susceptible to money laundering and sanctions evasion. High-profile cases have further highlighted the urgent need for art market reform, including the indictment of Hezbollah financier, Nazem Ahmad, who used art to evade terrorism-related sanctions to the tune of $160 million.

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MIL OSI USA News –

July 24, 2025

MIL-OSI Russia: Russia and Ukraine held the 3rd round of peace talks in Istanbul

Translation. Region: Russian Federal

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

An important disclaimer is at the bottom of this article.

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

ISTANBUL, July 23 (Xinhua) — Russian and Ukrainian delegations held the third round of peace talks at the Ciragan Palace in Istanbul on Wednesday, which started at 20:30 local time (17:30 GMT) and lasted for almost an hour and a half.

The Russian and Ukrainian delegations were headed by Russian presidential aide Vladimir Medinsky and Secretary of the National Security and Defense Council of Ukraine Rustem Umerov, respectively. The talks were chaired by Turkish Foreign Minister Hakan Fidan and head of the Turkish National Intelligence Organization Ibrahim Kalin.

At the end of the negotiations, V. Medinsky told journalists that the Russian side proposed creating three Russian-Ukrainian working groups that would work online to resolve political, humanitarian and military issues.

He also noted that both sides agreed on another round of prisoner exchange.

Before the start of the negotiations, H. Fidan made an opening speech in which he called on the delegations of both countries to engage in productive negotiations aimed at achieving a truce and ultimately ending the war.

“Our goal is to put an end to this bloody war, which has cost too much, as soon as possible,” said H. Fidan.

Two previous rounds of talks in Istanbul, held on May 16 and June 2, resulted in the exchange of thousands of prisoners of war and the bodies of dead soldiers, but produced little progress on achieving a ceasefire. –0–

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

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MIL OSI Russia News –

July 24, 2025

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

US Senate News:

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

MIL OSI USA News –

July 24, 2025

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

Translation. Region: Russian Federal

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

An important disclaimer is at the bottom of this article.

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

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

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

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

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

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

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

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

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

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

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

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

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

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MIL OSI Russia News –

July 24, 2025

MIL-OSI Russia: Georgia Shows Economic Resilience Amid Global Uncertainty – IMF

Translation. Region: Russian Federal

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

An important disclaimer is at the bottom of this article.

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

TBILISI, July 23 (Xinhua) — Georgia continues to demonstrate high resilience amid heightened domestic and geopolitical uncertainty, the International Monetary Fund (IMF) said in a statement on Wednesday following its annual consultations.

As noted in the statement, the Georgian economy maintains strong growth rates, inflation has stabilized near the target level, and public debt remains moderate. Such results were possible due to consistent macroeconomic policies, as well as stable domestic and external financial positions.

The IMF estimates that growth should slow to potential levels as domestic demand weakens, while inflation and public debt will remain stable if prudent monetary and fiscal policies continue.

Among the key challenges facing the Georgian economy, the IMF named high levels of structural unemployment, low productivity in agriculture, and a shortage of skilled labor. To overcome these difficulties, it recommended developing the vocational education system and increasing support for the agricultural sector. –0–

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

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MIL OSI Russia News –

July 24, 2025

MIL-OSI Russia: China is ready to stand up for justice and bring positive, stabilizing and constructive forces to world affairs together with its BRICS partners – Chinese Ambassador to Russia

Translation. Region: Russian Federal

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

An important disclaimer is at the bottom of this article.

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

Moscow, July 23 /Xinhua/ — China is ready to uphold justice and bring positive, stabilizing and constructive forces to world affairs together with its BRICS partners, Chinese Ambassador to Russia Zhang Hanhui said in an article titled “Consolidation of Agreements, Joining Efforts, Big BRICS Promotes Transformation of Global Governance,” published in the Russian newspaper Izvestia on Wednesday.

“The Chinese side is ready to work with its BRICS partners to uphold justice, bring positive, stabilizing and constructive forces to world affairs, promote peaceful settlement of disputes and develop strategic solutions to eliminate the root causes of problems while objectively assessing the circumstances,” the publication says.

As the Chinese diplomat noted, the 17th BRICS Leaders’ Meeting, which recently concluded in Rio de Janeiro, fully demonstrated the responsibility and readiness of the BRICS countries to become the “vanguard” of the Global South, and also emphasized the role of the association in protecting peace and stability throughout the world, promoting global open development, and advancing exchanges and mutual learning among civilizations.

Zhang Hanhui stressed that the BRICS countries are the driving forces of economic growth. “In the context of the recession and trade disputes, we must focus on development,” he urged. According to the author of the publication, it is necessary to make efforts to build an open world economy, resolutely oppose unilateralism and protectionism, protect the fundamental principles of the World Trade Organization, promote the liberalization and simplification of trade and investment, and ensure the stability and smoothness of production and supply chains. The ambassador also reported that China has established the China Cooperation Center for the Development of Special Economic Zones in the BRICS Countries.

The Chinese diplomat believes it is necessary to raise the level of international financial cooperation and open up new promising areas of economic growth, expand cooperation in new areas such as digital technology and green development. “China, through the Global Development Initiative, will create the Digital South brand and conduct 200 training programs on the digital economy and artificial intelligence for the countries of the Global South over the next five years,” he said, adding that this year China will establish the China-BRICS Research Center for New Productive Forces and establish a scholarship for BRICS countries to promote the training of personnel in sectors such as industry and telecommunications.

Zhang Hanhui called the BRICS countries the initiators of inter-civilization dialogue and called for promoting exchanges and mutual learning among civilizations. He noted that China is ready to work with its BRICS partners to implement the Global Civilization Initiative in line with the civilizational concept of equality, mutual learning, dialogue and inclusiveness. The author of the article called for respecting the diversity of human civilizations, recognizing the right of peoples of different countries to seek ways to realize their values, rejecting any form of a “new Cold War” and ideological confrontation, continuously “enriching the palette” of human civilization, strengthening continuity, innovation and humanitarian exchanges in culture, actively promoting the protection of cultural heritage and the development of culture, and striving to create a harmonious atmosphere of mutual learning, exchanges and coexistence among various civilizations.

Zhang Hanhui also pointed out that against the backdrop of accelerated changes unseen in a century, the concept of global governance put forward by Chinese President Xi Jinping is increasingly proving its modern value and practical significance. “In the face of growing conflicts and differences, it is necessary to intensify expanded consultations based on equality and mutual respect. Profound common interests require joint contributions based on solidarity,” the ambassador emphasized.

According to the Chinese diplomat, thanks to the joint efforts of China, Russia and other BRICS partners, the BRICS cooperation mechanism has been continuously developed and strengthened, its representation has expanded, and its international influence has steadily increased. “BRICS provides an important platform for countries in the Global South to assert their right to development, safeguard international justice, and participate in the reform of the global governance system,” he said, adding that China will continue to follow the “BRICS spirit” and work with Russia and other BRICS partners to develop common values and protect common interests, making new contributions to building a community with a shared future for mankind. –0–

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

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MIL OSI Russia News –

July 24, 2025

MIL-OSI United Nations: United Nations Board of Auditors Holds Seventy-Ninth Regular Session, 22-23 July at UN Headquarters, New York

Source: United Nations General Assembly and Security Council

The General Assembly established the United Nations Board of Auditors in 1946 as an important mechanism to promote accountability and transparency in the United Nations. The Board audits the accounts of the United Nations Organization and its funds and programmes and reports its findings and recommendations to the General Assembly, through the Advisory Committee on Administrative and Budgetary Questions (ACABQ), and other governing bodies. The Board has three members, who are jointly responsible for the audit.

The Board held its seventy-ninth regular session in New York on 22 and 23 July. The session was chaired by Pierre Moscovici, First President of the French Cour des comptes. Together with Mr. Moscovici, Hou Kai, Auditor-General of the National Audit Office of China, and Vital do Rêgo Filho, President of the Brazilian Federal Court of Accounts, collectively discussed findings and audit opinions.

During the session the Board met with the Secretary-General and the Deputy Secretary-General to exchange on cross-cutting issues.

Through its work, the Board provides independent assurance to Member States and other stakeholders regarding proper use of the resources of the United Nations entities. It reports on financial matters, as well as on regularity and performance issues. It plays a significant role in assisting the United Nations to improve its operations and internal control systems. The findings and recommendations of the Board have led to continuous systematic improvements in the functioning of the United Nations.

This year the Board audited the financial statements and reviewed the operations of 18 organizations and submitted the reports to the General Assembly. All the audited entities received unqualified opinions. Key trends and cross-entity issues have been gathered in the Board’s Concise Summary report, which focused specifically on inter-agency cooperation as a way to improve cost effectiveness. The Board further produced three reports for submission to other governing bodies. More detailed information about the Board’s findings can be found in the individual reports published on the Board’s website (http://www.un.org/en/auditors/board/).

ANNEX

List of Board Reports

Reports Submitted to General Assembly

France

1. United Nations Development Programme (UNDP)
2. United Nations Capital Development Fund (UNCDF)
3. United Nations High Commissioner for Refugees – (UNHCR)
4. Concise summary of findings and conclusions

China

5. United Nations, Vol.1
6. International Trade Centre (ITC)
7. United Nations Office for Projects Services (UNOPS)
8. United Nations Relief and Works Agency (UNRWA)
9. United Nations Environment Programme (UNEP)
10. United Nations Human Settlement Fund (UN-Habitat)

Brazil

11. United Nations University (UNU)
12. United Nations Institute for Training and Research (UNITAR)
13. United Nations Population Fund (UNFPA)
14. United Nations Drug Control Programme (UNODC)
15. United Nations Entity for Gender Equality and Empowerment of Women (UN-Women)
16. International Residual Mechanism for Criminal Tribunals (IRMCT)
17. United Nations Joint Staff Pension Fund
18. United Nations Children’s Fund (UNICEF)

Reports Submitted to Other Governing Bodies

France

19. United Nations Framework Convention on Climate Change
20. United Nations Convention to Combat Desertification

China

21. UNRWA Staff Provident Fund

MIL OSI United Nations News –

July 24, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

Investor Contact:
Greg McNiff
investors@silvaco.com

Media Contact:
Tiffany Behany
press@silvaco.com

The MIL Network –

July 24, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

Second Quarter 2025 Highlights:

Net interest income in the second quarter of 2025 increased 7% to $33.6 million compared to $31.3 million in the first quarter of 2025 and increased 24% compared to $27.1 million in the second quarter of 2024.
Net interest margin on a tax equivalent basis (“NIMTE”)^* was 4.72% for the second quarter of 2025, up 11-basis points from the first quarter of 2025 and up 42-basis points from the second quarter a year ago.
Return on average assets (“ROAA”) was 1.48% and return on average equity (“ROAE”) was 16.37% for the second quarter of 2025 compared to ROAA of 1.76 and ROAE of 19.70 in the prior quarter and ROAA of 1.31% and ROAE of 14.84% for the second quarter of 2024.
Portfolio loans were $2.20 billion at June 30, 2025, up 4% from the preceding quarter and up 17% from a year ago, primarily due to new customer relationships and expanding market share, as well as retaining certain mortgages originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”). The Company sold $61 million in consumer mortgages in the second quarter of 2025 that were included in loans held for investment as of the end of 2024 to reduce the concentration of residential real estate loans and to provide additional liquidity for future commercial and construction loan growth.
Total deposits were $2.81 billion at June 30, 2025, up 1% from the preceding quarter, and up 14% from $2.46 billion a year ago. Non-interest bearing demand deposits increased 5% from the preceding quarter and increased 10% year-over-year to $777.9 million at June 30, 2025 and represent 28% of total deposits.
The average cost of interest-bearing deposits was 2.04% at June 30, 2025, up slightly from 2.01% at March 31, 2025 and down from 2.21% at June 30, 2024.
Mortgage loan originations were $277.1 million in the second quarter of 2025, up from $121.6 million in the first quarter of 2025 and up from $181.5 million in the second quarter a year ago. Mortgage loans funded for sale were $249.7 million in the second quarter of 2025, compared to $108.5 million in the first quarter of 2025 and $152.3 million in the second quarter of 2024.

Financial Highlights	Three Months Ended
(Dollars in thousands, except per share data)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Total assets	$	3,243,760		$	3,140,960		$	3,041,869		$	2,963,392		$	2,821,668
Total portfolio loans	$	2,202,115		$	2,124,330		$	2,129,263		$	2,007,565		$	1,875,907
Total deposits	$	2,809,170		$	2,777,977		$	2,680,189		$	2,625,567		$	2,463,806
Total shareholders’ equity	$	290,219		$	279,756		$	267,116		$	260,050		$	247,200
Net income	$	11,778		$	13,324		$	10,927		$	8,825		$	9,020
Diluted earnings per share	$	2.09		$	2.38		$	1.95		$	1.57		$	1.62
Return on average assets		1.48	%		1.76	%		1.43	%		1.22	%		1.31	%
Return on average shareholders’ equity		16.37	%		19.70	%		16.32	%		13.69	%		14.84	%
NIM		4.66	%		4.55	%		4.41	%		4.29	%		4.24	%
NIMTE^*		4.72	%		4.61	%		4.47	%		4.35	%		4.30	%
Efficiency ratio		64.68	%		63.54	%		66.96	%		66.11	%		68.78	%
Total shareholders’ equity/total assets		8.95	%		8.91	%		8.78	%		8.78	%		8.76	%
Tangible common equity/tangible assets^*		7.50	%		7.41	%		7.23	%		8.28	%		8.24	%
Book value per share	$	52.55		$	50.67		$	48.41		$	47.27		$	44.93
Tangible book value per share^*	$	43.35		$	41.47		$	39.17		$	44.36		$	42.03
Dividends per share	$	0.64		$	0.64		$	0.62		$	0.62		$	0.61
Common stock outstanding		5,522,271			5,520,892			5,518,210			5,501,943			5,501,562

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Review of Income Statement

Consolidated Income Statement

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

Net Interest Income/Net Interest Margin

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

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

Provision for Credit Losses

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

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

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

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

Other Operating Income

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

Other Operating Expenses

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

Income Tax Provision

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

Community Banking

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

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

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

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

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

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

	Year-to-date
(Dollars in thousands, except per share data)	June 30, 2025			June 30, 2024
Net interest income	$	58,122		$	48,533
(Benefit) provision for credit losses		(449	)		13
Other operating income		5,971			4,919
Other operating expense		40,345			35,247
Income before provision for income taxes		24,197			18,192
Provision for income taxes		5,666			3,752
Net income Community Banking segment	$	18,531		$	14,440
Weighted average shares outstanding, diluted		5,611,734			5,562,025
Diluted earnings per share	$	3.30		$	2.59

Home Mortgage Lending

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

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

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

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

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

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

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

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

	Three Months Ended
(Dollars in thousands, except per share data)	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Mortgage commitments	$	73,198		$	68,258		$	32,299		$	77,591		$	88,006

Mortgage loans funded for sale	$	249,680		$	108,499		$	162,530		$	209,960		$	152,339
Mortgage loans funded for investment		27,455			13,061			23,380			38,087			29,175
Total mortgage loans funded	$	277,135		$	121,560		$	185,910		$	248,047		$	181,514
Mortgage loan refinances to total fundings		10	%		11	%		11	%		6	%		6	%
Mortgage loans serviced for others	$	1,553,987		$	1,484,714		$	1,460,720		$	1,166,585		$	1,101,800

Net realized and unrealized gains on mortgage loans sold and held for sale	$	5,091		$	1,580		$	3,747		$	5,079		$	3,189
Change in fair value of mortgage loan commitments, net		(110	)		660			(665	)		60			390
Total production revenue		4,981			2,240			3,082			5,139			3,579
Mortgage servicing revenue		2,957			2,696			2,847			2,583			2,164
Change in fair value of mortgage servicing rights:
Due to changes in model inputs of assumptions¹		(355	)		(322	)		1,372			(566	)		239
Other²		(463	)		(533	)		(499	)		(402	)		(320	)
Total mortgage servicing revenue, net		2,139			1,841			3,720			1,615			2,083
Other mortgage banking revenue		280			170			238			293			222
Total mortgage banking income	$	7,400		$	4,251		$	7,040		$	7,047		$	5,884

Net interest income	$	3,507		$	3,046		$	3,280		$	2,941		$	2,775
Provision (benefit) for credit losses		639			(307	)		305			571			64
Mortgage banking income		7,400			4,251			7,040			7,047			5,884
Other operating expense		7,593			6,490			7,198			7,643			6,697
Income before provision for income taxes		2,675			1,114			2,817			1,774			1,898
Provision for income taxes		746			310			842			497			532
Net income	$	1,929		$	804		$	1,975		$	1,277		$	1,366

Weighted average shares outstanding, diluted		5,611,558			5,608,102			5,597,889			5,583,055			5,558,580
Diluted earnings per share attributable to Home Mortgage Lending	$	0.34		$	0.14		$	0.35		$	0.23		$	0.25

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

	Year-to-date
(Dollars in thousands, except per share data)	June 30, 2025			June 30, 2024
Mortgage loans funded for sale	$	358,179		$	236,663
Mortgage loans funded for investment		40,516			46,578
Total mortgage loans funded	$	398,695		$	283,241
Mortgage loan refinances to total fundings		10	%		6	%

Net realized and unrealized gains on mortgage loans sold and held for sale	$	6,671		$	5,168
Change in fair value of mortgage loan commitments, net		550			777
Total production revenue		7,221			5,945
Mortgage servicing revenue		5,653			3,725
Change in fair value of mortgage servicing rights:
Due to changes in model inputs of assumptions¹		(677	)		528
Other²		(996	)		(634	)
Total mortgage servicing revenue, net		3,980			3,619
Other mortgage banking revenue		450			351
Total mortgage banking income	$	11,651		$	9,915

Net interest income	$	6,553		$	5,007
Provision for credit losses		332			16
Mortgage banking income		11,651			9,915
Other operating expense		14,083			12,783
Income before provision for income taxes		3,789			2,123
Provision for income taxes		1,056			595
Net income Home Mortgage Lending segment	$	2,733		$	1,528

Weighted average shares outstanding, diluted		5,611,734			5,562,025
Diluted earnings per share	$	0.48		$	0.28

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

Specialty Finance

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

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

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

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

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

	Year-to-date
(Dollars in thousands, except per share data)	June 30, 2025		June 30, 2024
Purchased receivable income	$	12,047	$	2,587
Other operating income		11		—
Interest income		1,378		382
Total revenue		13,436		2,969
Provision for credit losses		684		—
Compensation expense – SCF acquisition payments		1,200		—
Other operating expense		5,031		802
Interest expense		1,164		422
Total expense		8,079		1,224
Income before provision for income taxes		5,357		1,745
Provision for income taxes		1,519		494
Net income Specialty Finance segment	$	3,838	$	1,251
Weighted average shares outstanding, diluted		5,611,734		5,562,025
Diluted earnings per share	$	0.69	$	0.23

Balance Sheet Review

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

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

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

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

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

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

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

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

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

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

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

Asset Quality

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

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

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

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

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

About Northrim BanCorp

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

www.northrim.com

Forward-Looking Statement

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

https://www.bea.gov/

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

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

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

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

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

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

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

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

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Contact:	Mike Huston, President, CEO, and COO
	(907) 261-8750
	Jed Ballard, Chief Financial Officer
	(907) 261-3539

Income Statement
(Dollars in thousands, except per share data)	Three Months Ended								Year-to-date
(Unaudited)	June 30,		March 31,			June 30,			June 30,		June 30,
		2025		2025			2024			2025		2024
Interest Income:
Interest and fees on loans	$	40,519	$	37,470		$	32,367		$	77,989	$	62,817
Interest on portfolio investments		3,765		3,675			4,310			7,440		8,830
Interest on deposits in banks		515		416			232			931		1,070
Total interest income		44,799		41,561			36,909			86,360		72,717
Interest Expense:
Interest expense on deposits		10,304		9,935			9,476			20,239		18,656
Interest expense on borrowings		903		329			380			1,232		561
Total interest expense		11,207		10,264			9,856			21,471		19,217
Net interest income		33,592		31,297			27,053			64,889		53,500

Provision (benefit) for credit losses		1,976		(1,409	)		(120	)		567		29
Net interest income after provision for credit losses		31,616		32,706			27,173			64,322		53,471

Other Operating Income:
Mortgage banking income		7,400		4,251			5,884			11,651		9,915
Purchased receivable income		5,897		6,100			1,242			12,047		2,587
Bankcard fees		1,153		1,074			1,105			2,227		2,022
Service charges on deposit accounts		726		677			572			1,403		1,121
Unrealized gain (loss) on marketable equity securities		78		(50	)		(60	)		28		254
Other income		1,386		988			834			2,324		1,522
Total other operating income		16,640		13,040			9,577			29,680		17,421

Other Operating Expense:
Salaries and other personnel expense		20,854		17,223			16,627			38,077		32,044
Data processing expense		3,366		3,104			2,601			6,470		5,260
Occupancy expense		2,104		1,889			1,843			3,993		3,805
Professional and outside services		1,113		1,115			726			2,228		1,481
Marketing expense		1,042		672			690			1,714		1,203
Insurance expense		756		1,017			692			1,773		1,471
Compensation expense – SCF acquisition payments		600		600			—			1,200		—
OREO expense, net rental income and gains on sale		2		3			2			5		(389	)
Other expense		2,651		2,548			2,013			5,199		3,957
Total other operating expense		32,488		28,171			25,194			60,659		48,832

Income before provision for income taxes		15,768		17,575			11,556			33,343		22,060
Provision for income taxes		3,990		4,251			2,536			8,241		4,841
Net income	$	11,778	$	13,324		$	9,020		$	25,102	$	17,219

Basic EPS	$	2.13	$	2.41		$	1.64		$	4.54	$	3.13
Diluted EPS	$	2.09	$	2.38		$	1.62		$	4.47	$	3.10
Weighted average shares outstanding, basic		5,521,811		5,519,998			5,500,588			5,520,905		5,500,083
Weighted average shares outstanding, diluted		5,611,558		5,608,102			5,558,580			5,611,734		5,562,025

Balance Sheet
(Dollars in thousands)
(Unaudited)	June 30,			March 31,			June 30,
		2025			2025			2024

Assets:
Cash and due from banks	$	43,734		$	29,671		$	33,364
Interest bearing deposits in other banks		97,549			35,852			21,058
Investment securities available for sale, at fair value		429,421			463,096			584,964
Investment securities held to maturity		36,750			36,750			36,750
Marketable equity securities, at fair value		8,747			8,669			12,381
Investment in Federal Home Loan Bank stock		8,343			5,342			4,929
Loans held for sale		127,116			159,603			85,926

Portfolio loans		2,202,115			2,124,330			1,875,907
Allowance for credit losses, loans		(22,585	)		(20,922	)		(17,694	)
Net portfolio loans		2,179,530			2,103,408			1,858,213
Purchased receivables, net		109,098			95,489			25,722
Mortgage servicing rights, at fair value		27,506			26,814			21,077
Other real estate owned, net		—			—			—
Premises and equipment, net		36,501			37,070			40,393
Lease right of use asset		7,033			7,632			8,244
Goodwill and intangible assets		50,824			50,824			15,967
Other assets		81,608			80,740			72,680
Total assets	$	3,243,760		$	3,140,960		$	2,821,668

Liabilities:
Demand deposits	$	777,948		$	742,560		$	704,471
Interest-bearing demand		1,196,048			1,187,465			906,010
Savings deposits		248,141			256,650			238,156
Money market deposits		196,166			193,842			195,159
Time deposits		390,867			397,460			420,010
Total deposits		2,809,170			2,777,977			2,463,806
Other borrowings		63,026			13,136			43,961
Junior subordinated debentures		10,310			10,310			10,310
Lease liability		7,077			7,682			8,269
Other liabilities		63,958			52,099			48,122
Total liabilities		2,953,541			2,861,204			2,574,468

Shareholders’ Equity:
Total shareholders’ equity		290,219			279,756			247,200
Total liabilities and shareholders’ equity	$	3,243,760		$	3,140,960		$	2,821,668

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Composition of Portfolio Loans
	June 30, 2025					March 31, 2025					December 31, 2024					September 30, 2024					June 30, 2024
	Balance			% of total		Balance			% of total		Balance			% of total		Balance			% of total		Balance			% of total
Commercial loans	$	569,753		27	%	$	573,593		27	%	$	518,148		24	%	$	492,414		24	%	$	495,781		26	%
Commercial real estate:
Owner occupied properties		447,561		20	%		430,442		20	%		420,060		20	%		412,827		20	%		383,832		20	%
Nonowner occupied and
multifamily properties		696,766		31	%		690,277		32	%		619,431		29	%		584,302		31	%		551,130		30	%
Residential real estate:
1-4 family properties
secured by first liens		206,905		9	%		188,219		9	%		270,535		13	%		248,514		12	%		222,026		12	%
1-4 family properties
secured by junior liens &
revolving secured by first liens		60,118		3	%		53,836		3	%		48,857		2	%		45,262		2	%		41,258		2	%
1-4 family construction		36,005		2	%		34,017		2	%		39,789		2	%		39,794		2	%		29,510		2	%
Construction loans		187,442		8	%		156,211		7	%		214,068		10	%		185,362		9	%		154,009		8	%
Consumer loans		7,570		—	%		7,424		—	%		7,562		—	%		7,836		—	%		6,679		—	%
Subtotal		2,212,120					2,134,019					2,138,450					2,016,311					1,884,225
Unearned loan fees, net		(10,005	)				(9,689	)				(9,187	)				(8,746	)				(8,318	)
Total portfolio loans	$	2,202,115				$	2,124,330				$	2,129,263				$	2,007,565				$	1,875,907

Composition of Deposits
	June 30, 2025				March 31, 2025				December 31, 2024				September 30, 2024				June 30, 2024
	Balance		% of total		Balance		% of total		Balance		% of total		Balance		% of total		Balance		% of total
Demand deposits	$	777,948	28	%	$	742,560	27	%	$	706,225	27	%	$	763,595	29	%	$	704,471	29	%
Interest-bearing demand		1,196,048	42	%		1,187,465	43	%		1,108,404	41	%		979,238	37	%		906,010	36	%
Savings deposits		248,141	9	%		256,650	9	%		250,900	9	%		245,043	9	%		238,156	10	%
Money market deposits		196,166	7	%		193,842	7	%		196,290	7	%		204,821	8	%		195,159	8	%
Time deposits		390,867	14	%		397,460	14	%		418,370	16	%		435,870	17	%		420,010	17	%
Total deposits	$	2,809,170			$	2,777,977			$	2,680,189			$	2,628,567			$	2,463,806

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Asset Quality	June 30,		March 31,		June 30,
		2025		2025		2024
Nonaccrual loans – Community Banking	$	4,180	$	4,274	$	4,233
Nonaccrual loans – Home Mortgage Lending		197		221		253
Nonaccrual loans – Specialty Finance		3,484		3,573		344
Nonaccrual loans – Total		7,861		8,068		4,830
Loans 90 days past due and accruing – Community Banking		—		—		17
Loans 90 days past due and accruing – Total		—		—		17
Total nonperforming loans – Community Banking		4,180		4,274		4,250
Total nonperforming loans – Home Mortgage Lending		197		221		253
Total nonperforming loans – Specialty Finance		3,484		3,573		344
Total nonperforming loans – Total		7,861		8,068		4,847
Nonperforming loans guaranteed by gov’t – Community Banking		70		80		—
Nonperforming loans guaranteed by gov’t – Total		70		80		—
Net nonperforming loans – Community Banking		4,110		4,194		4,250
Net nonperforming loans – Home Mortgage Lending		197		221		253
Net nonperforming loans – Specialty Finance		3,484		3,573		344
Net nonperforming loans – Total		7,791		7,988		4,847

Repossessed assets – Community Banking		50		297		297
Repossessed assets – Total		50		297		297

Nonperforming purchased receivables – Specialty Finance		4,017		4,007		—

Net nonperforming assets – Community Banking		4,160		4,491		4,547
Net nonperforming assets – Home Mortgage Lending		197		221		253
Net nonperforming assets – Specialty Finance		7,501		7,580		344
Net nonperforming assets – Total	$	11,858	$	12,292	$	5,144

Adversely classified loans, net of gov’t guarantees – Community Banking	$	32,128	$	16,592	$	6,006
Adversely classified loans, net of gov’t guarantees – Home Mortgage Lending		223		252		718
Adversely classified loans, net of gov’t guarantees – Specialty Finance		3,484		3,573		344
Adversely classified loans, net of gov’t guarantees – Total	$	35,835	$	20,417	$	7,068

Special mention loans, net of gov’t guarantees – Community Banking	$	3,966	$	14,496	$	8,902
Special mention loans, net of gov’t guarantees – Home Mortgage Lending		790		637		—
Special mention loans, net of gov’t guarantees – Total	$	4,756	$	15,133	$	8,902

Asset Quality, Continued	June 30,				March 31,				June 30,
		2025				2025				2024
Nonperforming loans, net of government guarantees / portfolio loans		0.35		%		0.38		%		0.26		%
Nonperforming loans, net of government guarantees / portfolio loans,
net of government guarantees		0.38		%		0.40		%		0.28		%
Nonperforming assets, net of government guarantees / total assets		0.37		%		0.39		%		0.18		%
Nonperforming assets, net of government guarantees / total assets
net of government guarantees		0.38		%		0.41		%		0.19		%

Loans 30-89 days past due and accruing, net of government guarantees /								%
portfolio loans		0.06		%		0.04		%		0.03		%
Loans 30-89 days past due and accruing, net of government guarantees /
portfolio loans, net of government guarantees		0.06		%		0.04		%		0.04		%

Allowance for credit losses for loans / portfolio loans		1.03		%		0.98		%		0.94		%
Allowance for credit losses for loans / portfolio loans, net of gov’t guarantees		1.10		%		1.06		%		1.01		%
Allowance for credit losses for loans / nonperforming loans, net of
government guarantees		290		%		262		%		365		%

Gross loan charge-offs for the quarter – Community Banking	$3				$50				$—
Gross loan charge-offs for the quarter – Specialty Finance		152				—				—
Gross loan charge-offs for the quarter – Total		155				50				—

Gross loan recoveries for the quarter – Community Banking		(15	)			(84	)			(26	)
Gross loan recoveries for the quarter – Home Mortgage Lending		—				—				—
Gross loan recoveries for the quarter – Specialty Finance		—				—				—
Gross loan recoveries for the quarter – Total	($15		)		($84		)		($26		)

Net loan (recoveries) charge-offs for the quarter – Community Banking	($12		)		($34		)		($26		)
Net loan (recoveries) charge-offs for the quarter – Specialty Finance		152				—				—
Net loan (recoveries) charge-offs for the quarter – Total	$140				($34		)		($26		)

Net loan charge-offs (recoveries) year-to-date – Community Banking	($46		)		($34		)		($68		)
Net loan charge-offs (recoveries) year-to-date – Specialty Finance		152				—				—
Net loan charge-offs (recoveries) year-to-date – Total	$106				($34		)		($68		)

Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter		0.01		%		—		%		—		%

Net loan charge-offs (recoveries) year-to-date / average loans,
year-to-date annualized		0.01		%		(0.01	)	%		(0.01	)	%

Allowance for credit losses for purchased receivables / purchased receivables		3.05		%		3.72		%		—		%

Net purchased receivable charge-offs (recoveries) for the quarter	$281				$—				$—

Net purchased receivable charge-offs (recoveries) year-to-date	$281				$—				$—

Net purchased receivable charge-offs (recoveries) for the quarter /
average purchased receivables, for the quarter		0.27		%	NA				NA

Net purchased receivable charge-offs (recoveries) year-to-date / average
purchased receivables, year-to-date annualized		0.61		%	NA				NA

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Average Balances, Yields, and Rates
	Three Months Ended
	June 30, 2025					March 31, 2025					June 30, 2024
				Average					Average					Average
	Average			Tax Equivalent		Average			Tax Equivalent		Average			Tax Equivalent
	Balance			Yield/Rate		Balance			Yield/Rate		Balance			Yield/Rate
Assets
Interest bearing deposits in other banks	$	27,216		7.60	%	$	37,969		4.44	%	$	17,352		5.27	%
Portfolio investments		515,916		3.07	%		523,753		2.97	%		639,980		2.82	%
Loans held for sale		173,675		6.50	%		46,223		5.86	%		65,102		6.08	%
Portfolio loans		2,172,482		6.99	%		2,173,425		6.89	%		1,845,832		6.87	%
Total interest-earning assets		2,889,289		6.27	%		2,781,370		6.10	%		2,568,266		5.83	%
Nonearning assets		306,206					293,415					204,509
Total assets	$	3,195,495				$	3,074,785				$	2,772,775

Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	2,029,100		2.04	%	$	2,002,594		2.01	%	$	1,725,013		2.21	%
Borrowings		86,404		4.14	%		37,081		3.55	%		38,390		3.92	%
Total interest-bearing liabilities		2,115,504		2.12	%		2,039,675		2.04	%		1,763,403		2.25	%

Noninterest-bearing demand deposits		737,112					697,534					706,339
Other liabilities		54,320					63,348					58,549
Shareholders’ equity		288,559					274,228					244,484
Total liabilities and shareholders’ equity	$	3,195,495				$	3,074,785				$	2,772,775
Net spread				4.15	%				4.06	%				3.58	%
NIM				4.66	%				4.55	%				4.24	%
NIMTE^*				4.72	%				4.61	%				4.30	%
Cost of funds				1.57	%				1.52	%				1.60	%
Average portfolio loans to average
interest-earning assets		75.19	%				78.14	%				71.87	%
Average portfolio loans to average total deposits		78.54	%				80.49	%				75.92	%
Average non-interest deposits to average
total deposits		26.65	%				25.83	%				29.05	%
Average interest-earning assets to average
interest-bearing liabilities		136.58	%				136.36	%				145.64	%

Additional Financial Information
(Dollars in thousands)
(Unaudited)

Average Balances, Yields, and Rates
	Year-to-date
	June 30, 2025					June 30, 2024
				Average					Average
	Average			Tax Equivalent		Average			Tax Equivalent
	Balance			Yield/Rate		Balance			Yield/Rate
Assets
Interest bearing deposits in other banks	$	32,563		5.77	%	$	39,457		5.36	%
Portfolio investments		519,813		3.02	%		655,458		2.82	%
Loans held for sale		110,301		6.35	%		48,868		6.10	%
Portfolio loans		2,172,950		6.94	%		1,819,629		6.81	%
Total interest-earning assets		2,835,627		6.19	%		2,563,412		5.76	%
Nonearning assets		299,848					202,819
Total assets	$	3,135,475				$	2,766,231

Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	2,015,920		2.02	%	$	1,728,468		2.17	%
Borrowings		61,879		3.96	%		31,167		3.55	%
Total interest-bearing liabilities		2,077,799		2.08	%		1,759,635		2.19	%

Noninterest-bearing demand deposits		717,432					705,736
Other liabilities		58,809					59,478
Shareholders’ equity		281,435					241,382
Total liabilities and shareholders’ equity	$	3,135,475				$	2,766,231
Net spread				4.11	%				3.57	%
NIM				4.61	%				4.20	%
NIMTE^*				4.66	%				4.26	%
Cost of funds				1.55	%				1.57	%
Average portfolio loans to average interest-earning assets		76.63	%				70.98	%
Average portfolio loans to average total deposits		79.50	%				74.75	%
Average non-interest deposits to average total deposits		26.25	%				28.99	%
Average interest-earning assets to average interest-bearing liabilities		136.47	%				145.68	%

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

Capital Data (At quarter end)
	June 30, 2025				March 31, 2025				June 30, 2024
Book value per share	$52.55				$50.67				$44.93
Tangible book value per share^*	$43.35				$41.47				$42.03
Total shareholders’ equity/total assets		8.95		%		8.91		%		8.76		%
Tangible Common Equity/Tangible Assets^*		7.50		%		7.41		%		8.24		%
Tier 1 Capital / Risk Adjusted Assets		9.80		%		9.76		%		11.68		%
Total Capital / Risk Adjusted Assets		10.71		%		10.62		%		12.58		%
Tier 1 Capital / Average Assets		7.99		%		8.02		%		9.17		%
Shares outstanding		5,522,271				5,520,892				5,501,562
Total unrealized loss on AFS debt securities, net of income taxes	($3,571		)		($5,452		)		($15,197		)
Total unrealized gain on derivatives and hedging activities, net of income taxes	$1,026				$1,097				$1,212

Profitability Ratios
	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024
For the quarter:
NIM	4.66	%	4.55	%	4.41	%	4.29	%	4.24	%
NIMTE^*	4.72	%	4.61	%	4.47	%	4.35	%	4.30	%
Efficiency ratio	64.68	%	63.54	%	66.96	%	66.11	%	68.78	%
Return on average assets	1.48	%	1.76	%	1.43	%	1.22	%	1.31	%
Return on average equity	16.37	%	19.70	%	16.32	%	13.69	%	14.84	%

	June 30, 2025		June 30, 2024
Year-to-date:
NIM	4.61	%	4.20	%
NIMTE^*	4.66	%	4.26	%
Efficiency ratio	64.14	%	68.85	%
Return on average assets	1.61	%	1.25	%
Return on average equity	17.99	%	14.35	%

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

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

Net interest margin on a tax equivalent basis

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

	Three Months Ended
	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Net interest income	$	33,592		$	31,297		$	30,841		$	28,842		$	27,053
Divided by average interest-bearing assets		2,889,289			2,781,370			2,787,517			2,674,291			2,568,266
Net interest margin (“NIM”)²		4.66	%		4.55	%		4.41	%		4.29	%		4.24	%

Net interest income	$	33,592		$	31,297		$	30,841		$	28,842		$	27,053
Plus: reduction in tax expense related to
tax-exempt interest income		409			379			379			385			378
	$	34,001		$	31,676		$	31,220		$	29,227		$	27,431
Divided by average interest-bearing assets		2,889,289			2,781,370			2,787,517			2,674,291			2,568,266
NIMTE²		4.72	%		4.61	%		4.47	%		4.35	%		4.30	%

	Year-to-date
	June 30, 2025			June 30, 2024
Net interest income	$	64,889		$	53,500
Divided by average interest-bearing assets		2,835,627			2,563,412
Net interest margin (“NIM”)³		4.61	%		4.20	%

Net interest income	$	64,889		$	53,500
Plus: reduction in tax expense related to
tax-exempt interest income		788			757
	$	65,677		$	54,257
Divided by average interest-bearing assets		2,835,627			2,563,412
NIMTE³		4.66	%		4.26	%

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

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

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

Tangible Book Value Per Share

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

	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024

Total shareholders’ equity	$	290,219	$	279,756	$	267,116	$	260,050	$	247,200
Divided by shares outstanding		5,522		5,521		5,518		5,502		5,502
Book value per share	$	52.55	$	50.68	$	48.41	$	47.26	$	44.93

	June 30, 2025		March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024

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

Tangible Common Equity to Tangible Assets

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

Northrim BanCorp, Inc.	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024

Total shareholders’ equity	$	290,219		$	279,756		$	267,116		$	260,050		$	247,200
Total assets		3,243,760			3,140,960			3,041,869			2,963,392			2,821,668
Total shareholders’ equity to total assets		8.95	%		8.91	%		8.78	%		8.78	%		8.76	%

Northrim BanCorp, Inc.	June 30, 2025			March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024
Total shareholders’ equity	$	290,219		$	279,756		$	267,116		$	260,050		$	247,200
Less: goodwill and other intangible assets, net		50,824			50,824			50,968			15,967			15,967
Tangible common shareholders’ equity	$	239,395		$	228,932		$	216,148		$	244,083		$	231,233

Total assets	$	3,243,760		$	3,140,960		$	3,041,869		$	2,963,392		$	2,821,668
Less: goodwill and other intangible assets, net		50,824			50,824			50,968			15,967			15,967
Tangible assets	$	3,192,936		$	3,090,136		$	2,990,901		$	2,947,425		$	2,805,701
Tangible common equity ratio		7.50	%		7.41	%		7.23	%		8.28	%		8.24	%

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

The MIL Network –

July 24, 2025

MIL-OSI: Hanover Bancorp, Inc. Reports Second Quarter 2025 Results Highlighted by Strong Demand Deposit Growth, Continued Margin Expansion and Its Inclusion in the Russell 2000 Index

Source: GlobeNewswire (MIL-OSI)

Second Quarter Performance Highlights

Net Income: Net income for the quarter ended June 30, 2025 totaled $2.4 million or $0.33 per diluted share (including Series A preferred shares).
Pre-Provision Net Revenue: Pre-provision net revenue was $5.7 million resulting in a return on average assets of 1.04% for the quarter ended June 30, 2025 which was the highest level since the first quarter of 2023.
Net Interest Income: Net interest income was $14.8 million for the quarter ended June 30, 2025, an increase of $0.2 million, or 1.13% from the quarter ended March 31, 2025 and $1.5 million, or 11.69%, from the quarter ended June 30, 2024.
Net Interest Margin Expansion: The Company’s net interest margin during the quarter ended June 30, 2025 increased to 2.76% from 2.68% in the quarter ended March 31, 2025 and 2.46% in the quarter ended June 30, 2024.
Demand Deposit Growth: Demand deposits increased $28.1 million, or 13.03%, from March 31, 2025 and $32.0 million, or 15.12%, from December 31, 2024, underscoring the success of our C&I and Municipal banking verticals.
Strong Liquidity Position: At June 30, 2025, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $686.5 million, or approximately 274% of uninsured deposit balances. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 87% of total deposits at June 30, 2025.
Loan Diversification Strategy: The Company continues to actively manage its Multi-Family and Commercial Real Estate portfolios which resulted in a reduction in the commercial real estate concentration ratio to 368% of capital at June 30, 2025 from 385% at December 31, 2024 and 403% at June 30, 2024. The Company continues to focus loan growth primarily in residential loan products originated for sale to specific buyers in the secondary market, C&I and SBA loans. The Company will selectively explore Commercial Real Estate opportunities with an emphasis on relationship based Commercial Real Estate lending.
Asset Quality: At June 30, 2025, the Bank’s asset quality metrics remained solid with non-performing loans totaling $12.7 million, representing 0.64% of the total loan portfolio, and the allowance for credit losses equaling 1.10% of total loans, a decrease from non-performing loans totaling $16.4 million, representing 0.82% of the total loan portfolio, as of December 31, 2024.
Port Jefferson Branch: In June 2025, the Company continued its strategic expansion in Suffolk County Long Island with the opening of its tenth branch in Port Jefferson, New York. The Company will continue to be opportunistic in furthering its expansion into the underserved markets of Eastern Long Island.
Inclusion in Russell 2000: The Company was added to the Russell 2000 Index in late June 2025. The Russell 2000 Index encompasses the 2,000 largest U.S.-traded stocks by objective, market-capitalization rankings, and style attributes. The Russell Indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies.
Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common and Series A preferred shares payable on August 13, 2025 to stockholders of record on August 6, 2025.

MINEOLA, N.Y., July 23, 2025 (GLOBE NEWSWIRE) — Hanover Bancorp, Inc. (“Hanover” or “the Company” – NASDAQ: HNVR), the holding company for Hanover Community Bank (“the Bank”), today reported results for the quarter ended June 30, 2025 and the declaration of a $0.10 per share cash dividend on both common and Series A preferred shares payable on August 13, 2025 to stockholders of record on August 6, 2025.

Earnings Summary for the Quarter Ended June 30, 2025

The Company reported net income for the quarter ended June 30, 2025 of $2.4 million or $0.33 per diluted share (including Series A preferred shares), versus $0.8 million (after giving effect to an allowance for credit loss (“ACL”) on an individually evaluated loan of $2.5 million and a $1.1 million provision resulting from ongoing enhancements to the current expected credit loss (“CECL”) model) or $0.11 per diluted share (including Series A preferred shares) in the quarter ended June 30, 2024. Returns on average assets, average stockholders’ equity and average tangible equity were 0.44%, 4.93% and 5.46%, respectively, for the quarter ended June 30, 2025, versus 0.15%, 1.77% and 1.97%, respectively, for the comparable quarter of 2024.

The increase in net income recorded in the second quarter of 2025 from the comparable 2024 quarter resulted from an increase in net interest income and a decrease in provision for credit losses. These were partially offset by the increase in non-interest expenses, particularly compensation and benefits, and an increase in income tax expense. The increase in compensation and benefits expense in the second quarter of 2025 versus the comparable 2024 quarter was primarily related to the staffing of the newly opened Port Jefferson branch and additions to the C&I Banking teams, partially offset by lower incentive compensation expense resulting from reduced lending activity and other expense reduction initiatives. The Company’s effective tax rate was 27.8% in the second quarter of 2025 and 27.2% in the comparable 2024 quarter. We expect a normalized run rate of 25.0% for the remainder of the year.

Net interest income was $14.8 million for the quarter ended June 30, 2025, an increase of $1.5 million, or 11.69% from the comparable 2024 quarter. This increase was due to improvement of the Company’s net interest margin to 2.76% in the 2025 quarter from 2.46% in the comparable 2024 quarter. The cost of interest-bearing liabilities decreased to 3.94% in the 2025 quarter from 4.48% in the comparable 2024 quarter, a decrease of 54 basis points. This decrease was partially offset by a 24 basis point decrease in the yield on interest earning assets to 5.98% in the 2025 quarter from 6.22% in the second quarter of 2024. Net interest income on a linked quarter basis increased $0.2 million or 1.13%, due to an 8 basis point increase in net interest margin resulting from a 7 basis point decrease in cost of interest-bearing liabilities, partially offset by a 3 basis point decrease on yield on interest earning assets.

Earnings Summary for the Six Months Ended June 30, 2025

For the six months ended June 30, 2025, the Company reported net income of $4.0 million or $0.53 per diluted share (including Series A preferred shares), versus $4.9 million or $0.66 per diluted share (including Series A preferred shares) in the comparable 2024 six-month period. The Company recorded adjusted (non-GAAP) net income (excluding core system conversion expenses of $2.6 million, net of tax) of $6.5 million or $0.87 per diluted share in the six months ended June 30, 2025, versus net income of $4.9 million or $0.66 per diluted share in the comparable 2024 six-month period (which included no adjustments). Returns on average assets, average stockholders’ equity and average tangible equity were 0.36%, 4.02% and 4.46%, respectively, for the six months ended June 30, 2025, versus 0.44%, 5.20% and 5.80%, respectively, for the comparable 2024 period. Adjusted (non-GAAP) returns, exclusive of core system conversion expenses on average assets, average stockholders’ equity and average tangible equity were 0.59%, 6.63% and 7.35%, respectively, in the six months ended June 30, 2025, versus 0.44%, 5.20% and 5.80%, respectively, in the comparable of 2024 period.

The decrease in net income recorded for the six months ended June 30, 2025 from the comparable 2024 period is due to an increase in non-interest expenses, particularly compensation and benefits and the one-time core system conversion expenses. These were partially offset by an increase in net interest income and a decrease in provision for credit losses. The increase in compensation and benefits expense for the six months ended June 30, 2025 versus the comparable 2024 period was primarily related to additional headcount to staff the new Port Jefferson branch and expansion of the C&I lending vertical and lower deferred loan origination costs partially offset by lower incentive compensation expense resulting from reduced lending activity. The Company’s effective tax rate decreased to 23.0% for the six months ended June 30, 2025 from 25.3% in the comparable 2024 period.

Net interest income was $29.4 million for the six months ended June 30, 2025, an increase of $3.2 million, or 12.38% from the comparable 2024 period, due to the improvement of the Company’s net interest margin to 2.72% in the 2025 period from 2.43% in the comparable 2024 period. The cost of interest-bearing liabilities decreased to 3.98% in the 2025 six months period from 4.41% in the comparable 2024 period, a decrease of 43 basis points. This decrease was partially offset by a 13 basis point decrease in the yield on interest earning assets to 5.99% in the 2025 period from 6.12% in the comparable 2024 period. The increase in the net interest margin was a result of the late 2024 reductions in the Fed Funds effective rate and the liability sensitive nature of the Bank’s balance sheet.

Michael P. Puorro, Chairman and Chief Executive Officer, commented on the Company’s quarterly results: “Our second quarter performance, reflects a number of high notes, including increased Pre-Provision Net Revenue of $5.7 million, strong non-interest bearing deposit growth of $28.1 million, underscoring the success of our C&I and Municipal banking verticals, and continued improvement in our Net Interest Margin. We are extremely pleased with the recent opening of our Port Jefferson branch and will continue to be opportunistic in furthering our expansion into the underserved markets of Eastern Long Island. With our inclusion in the Russell 2000, the continued development of our diversified revenue verticals and liability sensitive balance sheet, we look forward to delivering continued shareholder value and the eventual benefits of a more favorable interest rate environment.”

Balance Sheet Highlights

Total assets were $2.31 billion at June 30, 2025 and December 31, 2024. Total securities available for sale at June 30, 2025 were $102.6 million, an increase of $18.9 million from December 31, 2024, primarily driven by growth in collateralized mortgage obligations, collateralized loan obligations and corporate bonds.

Total deposits were $1.95 billion at June 30, 2025 and December 31, 2024. Total deposits increased $9.4 million or 0.48% from June 30, 2024. Demand deposits increased $43.8 million or 21.93% from June 30, 2024 and $32.0 million, or 15.12%, from December 31, 2024 underscoring the success of our C&I and Municipal banking verticals. Our loan to deposit ratio improved to 101% at June 30, 2025 from 102% at December 31, 2024.

The Company had $517.4 million in total municipal deposits at June 30, 2025, at a weighted average rate of 3.67% versus $509.3 million at a weighted average rate of 3.72% at December 31, 2024 and $452.6 million at a weighted average rate of 4.61% at June 30, 2024. The Company’s municipal deposit program is built on long-standing relationships developed in the local marketplace. This core deposit business will continue to provide a stable source of funding for the Company’s lending products at costs lower than those of consumer deposits and market-based borrowings. The Company continues to broaden its municipal deposit base and currently services 40 customer relationships.

Total borrowings at June 30, 2025 were $107.8 million, with a weighted average rate and term of 4.11% and 17 months, respectively. At June 30, 2025 and December 31, 2024, the Company had $107.8 million of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at June 30, 2025 and December 31, 2024. The Company had no borrowings outstanding under lines of credit with correspondent banks at June 30, 2025 and December 31, 2024.

Stockholders’ equity was $198.9 million at June 30, 2025 and compared to $196.6 million at December 31, 2024. Retained earnings increased by $2.5 million due primarily to net income of $4.0 million for the six months ended June 30, 2025, which was offset by $1.5 million of dividends declared. The accumulated other comprehensive loss at June 30, 2025 was 0.62% of total equity and was comprised of a $0.7 million after tax net unrealized loss on the investment portfolio and a $0.5 million after tax net unrealized loss on derivatives. Tangible book value per share (including Series A preferred shares) was $23.94 at June 30, 2025 compared to $23.86 at December 31, 2024.

Loan Portfolio

For the six months ended June 30, 2025, the Bank’s loan portfolio decreased $19.1 million to $1.97 billion from December 31, 2024. The decrease resulted primarily from the ongoing management of our commercial real estate and multifamily loan concentrations. On a linked quarter basis, net loans increased $5.8 million. At June 30, 2025, the Company’s residential loan portfolio (including home equity) amounted to $738.8 million, with an average loan balance of $489 thousand and a weighted average loan-to-value ratio of 57%. Commercial real estate (including construction) and multifamily loans totaled $1.08 billion at June 30, 2025, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As will be discussed below, approximately 36% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continues to improve, decreasing to 368% of capital at June 30, 2025 from 385% at December 31, 2024 and 403% at June 30, 2024, with loans secured by office space accounting for 2.48% of the total loan portfolio and totaling $48.9 million at June 30, 2025. The Company’s loan pipeline with executed term sheets at June 30, 2025 is approximately $190.2 million, with approximately 81% being niche-residential, conventional C&I, SBA and USDA lending opportunities.

The Bank remains focused on expanding its core verticals and continues to originate loans for its portfolio and for sale in the secondary market under its residential flow origination program. The Bank originated $62.2 million in residential loans in the quarter ended June 30, 2025. During the quarters ended June 30, 2025 and 2024, the Company sold $23.7 million and $2.9 million, respectively, of residential loans under its flow origination program and recorded gains on sale of loans held-for-sale of $0.5 million and $0.1 million, respectively.

During the quarters ended June 30, 2025 and 2024, the Company sold approximately $22.3 million and $28.0 million, respectively, in government guaranteed SBA loans and recorded gains on sale of loans held-for-sale of $1.8 million and $2.5 million, respectively. SBA loan originations and gains on sale were lower than expected due to a confluence of factors. One factor is the impact of the “higher-for-longer” interest rate environment that we believe has both worsened the financial condition of and reduced demand among small business borrowers, resulting in a lower volume of creditworthy customers. Another factor is the negative impact of and uncertainty created by tariffs, which we believe have also dampened loan demand among borrowers in certain industries. A third factor is the Bank’s decision to tighten credit over the course of the last year. Although management continues to believe this to be a prudent measure, it has nonetheless resulted in a lower volume of loan approvals, causing the Bank to re-evaluate the number and caliber of its business development officers. Taken together these and other factors have adversely impacted SBA loan originations and closings. With the addition of additional business development officers in the second half of 2025, we anticipate higher volumes of eligible loans as we transition into 2026. The Bank concluded the second quarter of 2025 with C&I loan originations of approximately $29.3 million. Based on its existing pipeline, the Bank expects C&I lending and deposit activity to grow as the year progresses.

Commercial Real Estate Statistics

A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multi-Family and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans is minor at $8.2 million, all at floating interest rates. As shown below, 31% of the loan balances in these combined portfolios will either have a rate reset or mature in 2025 and 2026, with another 57% with rate resets or maturing in 2027.

Multi-Family Market Rent Portfolio Fixed Rate Reset/Maturity Schedule										Multi-Family Stabilized Rent Portfolio Fixed Rate Reset/Maturity Schedule
Calendar Period	# Loans		Total O/S ($000’s omitted)		Avg O/S ($000’s omitted)		Avg Interest Rate			Calendar Period	# Loans		Total O/S ($000’s omitted)		Avg O/S ($000’s omitted)		Avg Interest Rate

2025		7	$	8,609	$	1,230		5.29	%	2025		8	$	14,950	$	1,869		4.54	%
2026		36		117,249		3,257		3.66	%	2026		20		42,310		2,115		3.67	%
2027		70		185,157		2,645		4.41	%	2027		51		122,901		2,410		4.22	%
2028		16		21,310		1,332		6.20	%	2028		12		10,117		843		7.14	%
2029		6		4,924		821		7.70	%	2029		4		4,313		1,078		6.38	%
2030+		3		6,667		2,222		3.68	%	2030+		4		1,099		275		6.04	%
Fixed Rate		138		343,916		2,492		4.32	%	Fixed Rate		99		195,690		1,977		4.34	%
Floating Rate		2		347		174		9.50	%	Floating Rate		—		—		—		—	%
Total		140	$	344,263	$	2,459		4.33	%	Total		99	$	195,690	$	1,977		4.34	%

CRE Investor Portfolio Fixed Rate Reset/Maturity Schedule
Calendar Period	# Loans		Total O/S ($000’s omitted)		Avg O/S ($000’s omitted)		Avg Interest Rate

2025		25	$	33,503	$	1,340		7.28	%
2026		30		35,702		1,190		4.90	%
2027		89		156,924		1,763		4.86	%
2028		28		30,868		1,102		6.65	%
2029		4		2,336		584		7.04	%
2030+		15		8,999		600		6.46	%
Fixed Rate		191		268,332		1,405		5.45	%
Floating Rate		6		11,905		1,984		9.50	%
Total CRE-Inv.		197	$	280,237	$	1,423		5.62	%

Stabilized Multi-Family Pro Forma Stress Results

The table below reflects a proforma stressed evaluation of the Bank’s Multifamily stabilized loan portfolio, using the primary assumption for a revised Debt Service Coverage Ratio (“DSCR”) calculation, for all loans where the current interest rate is below 6%. The current balance for these loans is recast at 6% with a 30-year amortization. The chart below reflects the impact of these adjustments on the portfolio. The projected loan to value (“LTV”) assumption resets all loans using a 6% cap rate and the last reported property net operating income (“NOI”) to determine an implied property valuation and based on the current loan balance the resultant LTV.

Multi-Family Stabilized Rent Portfolio
DSCR Range	# Loans	Total O/S ($000’s omitted)		% of Total MF Portfolio		Current Weighted Average LTV		Projected Weighted Average LTV

< 1.0	10	$	18,153	3	%	61	%	95	%
1.0 < x < 1.2	24		69,751	13	%	65	%	74	%
1.2 < x < 1.3	20		34,897	6	%	62	%	67	%
1.3 < x < 1.5	15		38,547	7	%	63	%	61	%
1.5 < x < 2.0	18		25,805	5	%	58	%	53	%
x > 2.0	12		8,537	2	%	43	%	33	%
Total	99	$	195,690	36	%	62	%	67	%

As reflected above, the results show approximately 3%, or 10 loans totaling $18 million of the total multi-family portfolio would have proforma DSCR’s less than 1x while maintaining projected weighted average LTV’s under 100%. Additionally, approximately 97% or 89 loans totaling $178 million would possess DSCR’s greater than 1x while maintaining a projected weighted average LTV well within our policy guidelines. We believe the overall demand for multifamily housing in our market will allow our borrowers to address any adverse impact proactively, as evidenced by the maturities and rate resets in the previous 12 months which have been successfully refinanced with other institutions at market rates similar to those used in the above analysis.

Rental breakdown of Multi-Family portfolio

The table below segments our portfolio of loans secured by Multi-Family properties based on rental terms and location. As shown below, 64% of the combined portfolio is secured by properties subject to free market rental terms, which is the dominant tenant type. Both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New York City boroughs of Brooklyn, the Bronx and Queens.

Multi-Family Loan Portfolio – Loans by Rent Type
Rent Type	# of Notes		Outstanding Loan Balance		% of Total Multi-Family			Avg Loan Size		LTV			Current DSCR		Avg # of Units
			($000’s omitted)					($000’s omitted)

Market		140	$	344,263		64	%	$	2,459		61.8	%		1.41		11
Location
Manhattan		7	$	10,251		2	%	$	1,464		49.4	%		1.88		14
Other NYC		92	$	254,515		47	%	$	2,766		61.7	%		1.40		10
Outside NYC		41	$	79,497		15	%	$	1,939		63.9	%		1.36		14

Stabilized		99	$	195,690		36	%	$	1,977		61.8	%		1.44		12
Location
Manhattan		7	$	10,459		2	%	$	1,494		48.2	%		1.71		19
Other NYC		81	$	168,044		31	%	$	2,075		62.6	%		1.42		11
Outside NYC		11	$	17,187		3	%	$	1,562		63.1	%		1.54		14

Office Property Exposure

The Bank’s exposure to the Office market is minor. Loans secured by office space accounted for 2.48% of the total loan portfolio with a total balance of $48.9 million, of which less than 1% is located in Manhattan. The pool has a 2.48x weighted average DSCR, a 53% weighted average LTV and less than $350,000 of exposure in Manhattan.

Asset Quality and Allowance for Credit Losses

The Bank’s asset quality metrics remain solid. At June 30, 2025, the Bank reported $12.7 million in non-performing loans compared to $16.4 million at December 31, 2024, a decrease of $3.7 million. This decrease resulted primarily from the proactive sale of non-performing loans, satisfactions and the charge-off of a specific reserve established in June 2024 on an individually evaluated commercial loan. At June 30, 2025 non-performing loans were 0.64% of total loans outstanding versus 0.82% at December 31, 2024.

During the second quarter of 2025, the Bank recorded a provision for credit losses expense of $2.4 million (including $187 thousand provision for credit losses on unfunded commitments). Net charge-offs of $3.5 million were incurred during the quarter, of which $2.5 million is attributable to the aforementioned charge-off of a specific reserve on an individually evaluated commercial loan. The June 30, 2025 allowance for credit losses was $21.6 million versus $22.8 million at December 31, 2024. The allowance for credit losses as a percentage of total loans was 1.10% at June 30, 2025 and 1.15% at December 31, 2024.

Net Interest Margin

The Bank’s net interest margin increased to 2.76% for the quarter ended June 30, 2025 compared to 2.68% in the quarter ended March 31, 2025 and 2.46% in the quarter ended June 30, 2024 due to the continuing effects of the late 2024 reductions in the Federal Funds effective rate and the liability sensitive nature of the Bank’s balance sheet.

About Hanover Community Bank and Hanover Bancorp, Inc.

Hanover Bancorp, Inc. (NASDAQ: HNVR), is the bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover offers a complete suite of consumer, commercial, and municipal banking products and services, including multi-family and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Port Jefferson, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Chinatown, New York, and Freehold, New Jersey.

Hanover Community Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call (516) 548-8500 or visit the Bank’s website at www.hanoverbank.com.

Non-GAAP Disclosure

This discussion, including the financial statements attached thereto, includes non-GAAP financial measures which include the Company’s adjusted net income, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, tangible common equity (“TCE”) ratio, TCE, tangible assets, tangible book value per share, return on average tangible equity and efficiency ratio. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company’s operating results and trends in addition to the results measured in accordance with GAAP, and provides greater comparability across time periods. While management uses non-GAAP financial measures in its analysis of the Company’s performance, this information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other financial institutions.

With respect to the calculations of and reconciliations of adjusted net income, TCE, tangible assets, TCE ratio and tangible book value per share, reconciliations to the most comparable U.S. GAAP measures are provided in the tables that follow.

Forward-Looking Statements

This release may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hanover Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Hanover Bancorp, Inc. may turn out to be incorrect. They can be affected by inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties, including those discussed in our Annual Report on Form 10-K under Item 1A – Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Further, the adverse effect of health emergencies or natural disasters on the Company, its customers, and the communities where it operates may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events.

Investor and Press Contact:
Lance P. Burke
Chief Financial Officer
(516) 548-8500


HANOVER BANCORP, INC.
STATEMENTS OF CONDITION (unaudited)
(dollars in thousands)

		June 30,		March 31,		December 31,
		2025		2025		2024
Assets
Cash and cash equivalents		$	164,535	$	160,234	$	162,857
Securities-available for sale, at fair value			102,636		93,197		83,755
Investments-held to maturity			3,594		3,671		3,758
Loans held for sale			10,593		16,306		12,404

Loans, net of deferred loan fees and costs			1,966,452		1,960,674		1,985,524
Less: allowance for credit losses			-21,571		-22,925		-22,779
Loans, net			1,944,881		1,937,749		1,962,745

Goodwill			19,168		19,168		19,168
Premises & fixed assets			14,388		14,511		15,337
Operating lease assets			10,890		8,484		8,337
Other assets			41,291		38,207		43,749
	Assets	$	2,311,976	$	2,291,527	$	2,312,110

Liabilities and stockholders’ equity
Core deposits		$	1,439,656	$	1,418,209	$	1,456,513
Time deposits			511,625		518,229		497,770
Total deposits			1,951,281		1,936,438		1,954,283

Borrowings			107,805		107,805		107,805
Subordinated debentures			24,716		24,702		24,689
Operating lease liabilities			11,565		9,144		9,025
Other liabilities			17,724		16,795		19,670
	Liabilities		2,113,091		2,094,884		2,115,472

Stockholders’ equity			198,885		196,643		196,638
	Liabilities and stockholders’ equity	$	2,311,976	$	2,291,527	$	2,312,110

HANOVER BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(dollars in thousands, except per share data)

		Three Months Ended				Six Months Ended
		6/30/2025		6/30/2024		6/30/2025		6/30/2024

Interest income		$	32,049	$	33,420	$	64,886	$	65,852
Interest expense			17,254		20,173		35,462		39,670
	Net interest income		14,795		13,247		29,424		26,182
Provision for credit losses			2,357		4,040		2,957		4,340
	Net interest income after provision for credit losses		12,438		9,207		26,467		21,842

Loan servicing and fee income			1,083		836		2,164		1,749
Service charges on deposit accounts			162		114		279		210
Gain on sale of loans held-for-sale			2,298		2,586		4,650		5,092
Gain on sale of investments			–		4		–		4
Other operating income			18		82		200		143
	Non-interest income		3,561		3,622		7,293		7,198

Compensation and benefits			7,003		6,499		14,235		12,061
Conversion expenses			–		–		3,180		–
Occupancy and equipment			1,910		1,843		3,746		3,613
Data processing			508		495		1,101		1,013
Professional fees			878		717		1,665		1,535
Federal deposit insurance premiums			365		365		702		683
Other operating expenses			1,952		1,751		3,983		3,569
	Non-interest expense		12,616		11,670		28,612		22,474

	Income before income taxes		3,383		1,159		5,148		6,566
Income tax expense			940		315		1,184		1,661

	Net income	$	2,443	$	844	$	3,964	$	4,905

Earnings per share (“EPS”):⁽¹⁾
Basic		$	0.33	$	0.11	$	0.53	$	0.66
Diluted		$	0.33	$	0.11	$	0.53	$	0.66

Average shares outstanding for basic EPS ⁽¹⁾⁽²⁾			7,500,871		7,399,816		7,482,307		7,388,021
Average shares outstanding for diluted EPS ⁽¹⁾⁽²⁾			7,506,584		7,449,110		7,488,226		7,438,234

⁽¹⁾ Calculation includes common stock and Series A preferred stock.
⁽²⁾ Average shares outstanding before subtracting participating securities.

HANOVER BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
QUARTERLY TREND
(dollars in thousands, except per share data)

		Three Months Ended
		6/30/2025		3/31/2025		12/31/2024		9/30/2024		6/30/2024

Interest income		$	32,049	$	32,837	$	33,057	$	34,113	$	33,420
Interest expense			17,254		18,208		19,249		21,011		20,173
	Net interest income		14,795		14,629		13,808		13,102		13,247
Provision for credit losses			2,357		600		400		200		4,040
	Net interest income after provision for credit losses		12,438		14,029		13,408		12,902		9,207

Loan servicing and fee income			1,083		1,081		981		960		836
Service charges on deposit accounts			162		117		136		123		114
Gain on sale of loans held-for-sale			2,298		2,352		3,014		2,834		2,586
Gain on sale of investments			–		–		27		–		4
Other operating income			18		182		29		37		82
	Non-interest income		3,561		3,732		4,187		3,954		3,622

Compensation and benefits			7,003		7,232		6,699		6,840		6,499
Conversion expenses			–		3,180		–		–		–
Occupancy and equipment			1,910		1,836		1,810		1,799		1,843
Data processing			508		593		536		547		495
Professional fees			878		787		782		762		717
Federal deposit insurance premiums			365		337		375		360		365
Other operating expenses			1,952		2,031		2,198		1,930		1,751
	Non-interest expense		12,616		15,996		12,400		12,238		11,670

	Income before income taxes		3,383		1,765		5,195		4,618		1,159
Income tax expense			940		244		1,293		1,079		315

	Net income	$	2,443	$	1,521	$	3,902	$	3,539	$	844

Earnings per share (“EPS”):⁽¹⁾
Basic		$	0.33	$	0.20	$	0.53	$	0.48	$	0.11
Diluted		$	0.33	$	0.20	$	0.52	$	0.48	$	0.11

Average shares outstanding for basic EPS ⁽¹⁾⁽²⁾			7,500,871		7,463,537		7,427,583		7,411,064		7,399,816
Average shares outstanding for diluted EPS ⁽¹⁾⁽²⁾			7,506,584		7,469,489		7,456,471		7,436,068		7,449,110

⁽¹⁾ Calculation includes common stock and Series A preferred stock.
⁽²⁾ Average shares outstanding before subtracting participating securities.

HANOVER BANCORP, INC.
CONSOLIDATED NON-GAAP FINANCIAL INFORMATION ⁽¹⁾(unaudited)
(dollars in thousands, except per share data)

	Three Months Ended						Six Months Ended
	6/30/2025			6/30/2024			6/30/2025			6/30/2024

ADJUSTED NET INCOME:
Net income, as reported	$	2,443		$	844		$	3,964		$	4,905
Adjustments:
Conversion expenses		–			–			3,180			–
Total adjustments, before income taxes		–			–			3,180			–
Adjustment for reported effective income tax rate		–			–			608			–
Total adjustments, after income taxes		–			–			2,572			–
Adjusted net income	$	2,443		$	844		$	6,536		$	4,905
Basic earnings per share – adjusted	$	0.33		$	0.11		$	0.87		$	0.66
Diluted earnings per share – adjusted	$	0.33		$	0.11		$	0.87		$	0.66

ADJUSTED OPERATING EFFICIENCY RATIO:
Operating efficiency ratio, as reported		68.73	%		69.18	%		77.93	%		67.33	%
Adjustments:
Conversion expenses		0.00	%		0.00	%		-8.66	%		0.00	%
Adjusted operating efficiency ratio		68.73	%		69.18	%		69.27	%		67.33	%

ADJUSTED RETURN ON AVERAGE ASSETS		0.44	%		0.15	%		0.59	%		0.44	%
ADJUSTED RETURN ON AVERAGE EQUITY		4.93	%		1.77	%		6.63	%		5.20	%
ADJUSTED RETURN ON AVERAGE TANGIBLE EQUITY		5.46	%		1.97	%		7.35	%		5.80	%

⁽¹⁾ 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 in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.

Note: Prior period information has been adjusted to conform to current period presentation.

HANOVER BANCORP, INC.
SELECTED FINANCIAL DATA (unaudited)
(dollars in thousands)

	Three Months Ended						Six Months Ended
	6/30/2025			6/30/2024			6/30/2025			6/30/2024
Profitability:
Return on average assets		0.44	%		0.15	%		0.36	%		0.44	%
Return on average equity ⁽¹⁾		4.93	%		1.77	%		4.02	%		5.20	%
Return on average tangible equity ⁽¹⁾		5.46	%		1.97	%		4.46	%		5.80	%
Pre-provision net revenue return on assets		1.04	%		0.94	%		0.73	%		0.99	%
Yield on average interest-earning assets		5.98	%		6.22	%		5.99	%		6.12	%
Cost of average interest-bearing liabilities		3.94	%		4.48	%		3.98	%		4.41	%
Net interest rate spread ⁽²⁾		2.04	%		1.74	%		2.01	%		1.71	%
Net interest margin ⁽³⁾		2.76	%		2.46	%		2.72	%		2.43	%
Non-interest expense to average assets		2.29	%		2.11	%		2.57	%		2.03	%
Operating efficiency ratio ⁽⁴⁾		68.73	%		69.18	%		77.93	%		67.33	%

Average balances:
Interest-earning assets	$	2,148,782		$	2,162,250		$	2,182,757		$	2,162,543
Interest-bearing liabilities		1,756,316			1,809,991			1,798,958			1,810,195
Loans		1,978,535			2,014,820			1,984,135			1,999,448
Deposits		1,838,947			1,773,205			1,878,969			1,807,924
Borrowings		142,733			231,473			138,224			196,950

⁽¹⁾ Includes common stock and Series A preferred stock.
⁽²⁾ Represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
⁽³⁾ Represents net interest income divided by average interest-earning assets.
⁽⁴⁾ Represents non-interest expense divided by the sum of net interest income and non-interest income.

Note: Prior period information has been adjusted to conform to current period presentation.

HANOVER BANCORP, INC.
SELECTED FINANCIAL DATA (unaudited)
(dollars in thousands, except share and per share data)

	At or For the Three Months Ended
	6/30/2025			3/31/2025			12/31/2024			9/30/2024
Asset quality:
Provision for credit losses – loans ⁽¹⁾	$	2,170		$	600		$	400		$	200
Net (charge-offs)/recoveries		(3,524	)		(454	)		(1,027	)		(438	)
Allowance for credit losses		21,571			22,925			22,779			23,406
Allowance for credit losses to total loans ⁽²⁾		1.10	%		1.17	%		1.15	%		1.17	%
Non-performing loans	$	12,651		$	11,697		$	16,368		$	15,365
Non-performing loans/total loans		0.64	%		0.60	%		0.82	%		0.77	%
Non-performing loans/total assets		0.55	%		0.51	%		0.71	%		0.66	%
Allowance for credit losses/non-performing loans		170.51	%		195.99	%		139.17	%		152.33	%

Capital (Bank only):
Tier 1 Capital	$	203,322		$	201,925		$	201,744		$	198,196
Tier 1 leverage ratio		9.29	%		8.95	%		9.13	%		8.85	%
Common equity tier 1 capital ratio		13.16	%		13.37	%		13.32	%		12.99	%
Tier 1 risk based capital ratio		13.16	%		13.37	%		13.32	%		12.99	%
Total risk based capital ratio		14.41	%		14.62	%		14.58	%		14.24	%

Equity data:
Shares outstanding ⁽³⁾		7,499,243			7,503,731			7,427,127			7,428,366
Stockholders’ equity	$	198,885		$	196,643		$	196,638		$	192,339
Book value per share ⁽³⁾		26.52			26.21			26.48			25.89
Tangible common equity ⁽³⁾		179,495			177,239			177,220			172,906
Tangible book value per share ⁽³⁾		23.94			23.62			23.86			23.28
Tangible common equity (“TCE”) ratio ⁽³⁾		7.83	%		7.80	%		7.73	%		7.49	%

(1) Excludes $187 thousand, $0, $0 and $0 provision for credit losses on unfunded commitments for the quarters ended 6/30/25, 3/31/25, 12/31/24 and 9/30/24, respectively.
(2) Calculation excludes loans held for sale.
(3) Includes common stock and Series A preferred stock.

HANOVER BANCORP, INC.
STATISTICAL SUMMARY
QUARTERLY TREND
(unaudited, dollars in thousands, except share data)

	6/30/2025			3/31/2025			12/31/2024			9/30/2024

Loan distribution ⁽¹⁾:
Residential mortgages	$	715,418		$	708,649		$	702,832		$	719,037
Multifamily		539,573			535,429			550,570			557,634
Commercial real estate – OO		267,223			264,855			261,223			246,458
Commercial real estate – NOO		271,552			280,345			298,517			305,536
Commercial & industrial		148,907			146,050			145,457			149,853
Home equity		23,361			24,914			26,422			26,825
Consumer		418			432			503			470

Total loans	$	1,966,452		$	1,960,674		$	1,985,524		$	2,005,813

Sequential quarter growth rate		0.29	%		-1.25	%		-1.01	%		-0.35	%

CRE concentration ratio		368	%		369	%		385	%		397	%

Loans sold during the quarter	$	46,045		$	46,649		$	53,499		$	43,537

Funding distribution:
Demand	$	243,664		$	215,569		$	211,656		$	206,327
N.O.W.		655,333			698,297			692,890			621,880
Savings		42,860			46,275			48,885			53,024
Money market		497,799			458,068			503,082			572,213
Total core deposits		1,439,656			1,418,209			1,456,513			1,453,444
Time		511,625			518,229			497,770			504,100
Total deposits		1,951,281			1,936,438			1,954,283			1,957,544
Borrowings		107,805			107,805			107,805			125,805
Subordinated debentures		24,716			24,702			24,689			24,675

Total funding sources	$	2,083,802		$	2,068,945		$	2,086,777		$	2,108,024

Sequential quarter growth rate – total deposits		0.77	%		-0.91	%		-0.17	%		0.80	%

Period-end core deposits/total deposits ratio		73.78	%		73.24	%		74.53	%		74.25	%

Period-end demand deposits/total deposits ratio		12.49	%		11.13	%		10.83	%		10.54	%

⁽¹⁾ Excluding loans held for sale

Note: Prior period information has been adjusted to conform to current period presentation.

HANOVER BANCORP, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ⁽¹⁾(unaudited)
(dollars in thousands, except share and per share amounts)

	6/30/2025			3/31/2025			12/31/2024			9/30/2024			6/30/2024
Tangible common equity
Total equity ⁽²⁾	$	198,885		$	196,643		$	196,638		$	192,339		$	190,072
Less: goodwill		(19,168	)		(19,168	)		(19,168	)		(19,168	)		(19,168	)
Less: core deposit intangible		(222	)		(236	)		(250	)		(265	)		(279	)
Tangible common equity ⁽²⁾	$	179,495		$	177,239		$	177,220		$	172,906		$	170,625

Tangible common equity (“TCE”) ratio
Tangible common equity ⁽²⁾	$	179,495		$	177,239		$	177,220		$	172,906		$	170,625
Total assets		2,311,976			2,291,527			2,312,110			2,327,814			2,331,098
Less: goodwill		(19,168	)		(19,168	)		(19,168	)		(19,168	)		(19,168	)
Less: core deposit intangible		(222	)		(236	)		(250	)		(265	)		(279	)
Tangible assets	$	2,292,586		$	2,272,123		$	2,292,692		$	2,308,381		$	2,311,651
TCE ratio ⁽²⁾		7.83	%		7.80	%		7.73	%		7.49	%		7.38	%

Tangible book value per share
Tangible equity ⁽²⁾	$	179,495		$	177,239		$	177,220		$	172,906		$	170,625
Shares outstanding ⁽²⁾		7,499,243			7,503,731			7,427,127			7,428,366			7,402,163
Tangible book value per share ⁽²⁾	$	23.94		$	23.62		$	23.86		$	23.28		$	23.05

⁽¹⁾ 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 in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.

⁽²⁾ Includes common stock and Series A preferred stock.

HANOVER BANCORP, INC.
NET INTEREST INCOME ANALYSIS
For the Three Months Ended June 30, 2025 and 2024
(unaudited, dollars in thousands)

	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost

Assets:
Interest-earning assets:
Loans	$	1,978,535	$	29,785		6.04	%	$	2,014,820	$	31,124		6.21	%
Investment securities		99,448		1,433		5.78	%		99,324		1,534		6.21	%
Interest-earning cash		62,760		695		4.44	%		36,633		497		5.46	%
FHLB stock and other investments		8,039		136		6.79	%		11,473		265		9.29	%
Total interest-earning assets		2,148,782		32,049		5.98	%		2,162,250		33,420		6.22	%
Non interest-earning assets:
Cash and due from banks		9,218							7,979
Other assets		50,164							51,106
Total assets	$	2,208,164						$	2,221,335

Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Savings, N.O.W. and money market deposits	$	1,126,495	$	10,649		3.79	%	$	1,117,029	$	12,667		4.56	%
Time deposits		487,088		5,058		4.17	%		461,489		4,910		4.28	%
Total savings and time deposits		1,613,583		15,707		3.90	%		1,578,518		17,577		4.48	%
Borrowings		118,026		1,221		4.15	%		206,820		2,270		4.41	%
Subordinated debentures		24,707		326		5.29	%		24,653		326		5.32	%
Total interest-bearing liabilities		1,756,316		17,254		3.94	%		1,809,991		20,173		4.48	%
Demand deposits		225,364							194,687
Other liabilities		27,615							25,039
Total liabilities		2,009,295							2,029,717
Stockholders’ equity		198,869							191,618
Total liabilities & stockholders’ equity	$	2,208,164						$	2,221,335
Net interest rate spread						2.04	%						1.74	%
Net interest income/margin			$	14,795		2.76	%			$	13,247		2.46	%

HANOVER BANCORP, INC.
NET INTEREST INCOME ANALYSIS
For the Six Months Ended June 30, 2025 and 2024
(unaudited, dollars in thousands)

	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost

Assets:
Interest-earning assets:
Loans	$	1,984,135	$	59,769		6.07	%	$	1,999,448	$	60,861		6.12	%
Investment securities		92,681		2,619		5.70	%		97,085		2,991		6.20	%
Interest-earning cash		97,914		2,177		4.48	%		55,652		1,511		5.46	%
FHLB stock and other investments		8,027		321		8.06	%		10,358		489		9.49	%
Total interest-earning assets		2,182,757		64,886		5.99	%		2,162,543		65,852		6.12	%
Non interest-earning assets:
Cash and due from banks		9,360							7,962
Other assets		49,930							50,523
Total assets	$	2,242,047						$	2,221,028

Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Savings, N.O.W. and money market deposits	$	1,171,711	$	22,104		3.80	%	$	1,139,111	$	25,600		4.52	%
Time deposits		489,023		10,378		4.28	%		474,134		9,872		4.19	%
Total savings and time deposits		1,660,734		32,482		3.94	%		1,613,245		35,472		4.42	%
Borrowings		113,524		2,328		4.14	%		172,304		3,546		4.14	%
Subordinated debentures		24,700		652		5.32	%		24,646		652		5.32	%
Total interest-bearing liabilities		1,798,958		35,462		3.98	%		1,810,195		39,670		4.41	%
Demand deposits		218,235							194,679
Other liabilities		26,179							26,499
Total liabilities		2,043,372							2,031,373
Stockholders’ equity		198,675							189,655
Total liabilities & stockholders’ equity	$	2,242,047						$	2,221,028
Net interest rate spread						2.01	%						1.71	%
Net interest income/margin			$	29,424		2.72	%			$	26,182		2.43	%

The MIL Network –

July 24, 2025

MIL-OSI: Hanover Bancorp, Inc. Reports Second Quarter 2025 Results Highlighted by Strong Demand Deposit Growth, Continued Margin Expansion and Its Inclusion in the Russell 2000 Index

Source: GlobeNewswire (MIL-OSI)

Second Quarter Performance Highlights

Net Income: Net income for the quarter ended June 30, 2025 totaled $2.4 million or $0.33 per diluted share (including Series A preferred shares).
Pre-Provision Net Revenue: Pre-provision net revenue was $5.7 million resulting in a return on average assets of 1.04% for the quarter ended June 30, 2025 which was the highest level since the first quarter of 2023.
Net Interest Income: Net interest income was $14.8 million for the quarter ended June 30, 2025, an increase of $0.2 million, or 1.13% from the quarter ended March 31, 2025 and $1.5 million, or 11.69%, from the quarter ended June 30, 2024.
Net Interest Margin Expansion: The Company’s net interest margin during the quarter ended June 30, 2025 increased to 2.76% from 2.68% in the quarter ended March 31, 2025 and 2.46% in the quarter ended June 30, 2024.
Demand Deposit Growth: Demand deposits increased $28.1 million, or 13.03%, from March 31, 2025 and $32.0 million, or 15.12%, from December 31, 2024, underscoring the success of our C&I and Municipal banking verticals.
Strong Liquidity Position: At June 30, 2025, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $686.5 million, or approximately 274% of uninsured deposit balances. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 87% of total deposits at June 30, 2025.
Loan Diversification Strategy: The Company continues to actively manage its Multi-Family and Commercial Real Estate portfolios which resulted in a reduction in the commercial real estate concentration ratio to 368% of capital at June 30, 2025 from 385% at December 31, 2024 and 403% at June 30, 2024. The Company continues to focus loan growth primarily in residential loan products originated for sale to specific buyers in the secondary market, C&I and SBA loans. The Company will selectively explore Commercial Real Estate opportunities with an emphasis on relationship based Commercial Real Estate lending.
Asset Quality: At June 30, 2025, the Bank’s asset quality metrics remained solid with non-performing loans totaling $12.7 million, representing 0.64% of the total loan portfolio, and the allowance for credit losses equaling 1.10% of total loans, a decrease from non-performing loans totaling $16.4 million, representing 0.82% of the total loan portfolio, as of December 31, 2024.
Port Jefferson Branch: In June 2025, the Company continued its strategic expansion in Suffolk County Long Island with the opening of its tenth branch in Port Jefferson, New York. The Company will continue to be opportunistic in furthering its expansion into the underserved markets of Eastern Long Island.
Inclusion in Russell 2000: The Company was added to the Russell 2000 Index in late June 2025. The Russell 2000 Index encompasses the 2,000 largest U.S.-traded stocks by objective, market-capitalization rankings, and style attributes. The Russell Indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies.
Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common and Series A preferred shares payable on August 13, 2025 to stockholders of record on August 6, 2025.

MINEOLA, N.Y., July 23, 2025 (GLOBE NEWSWIRE) — Hanover Bancorp, Inc. (“Hanover” or “the Company” – NASDAQ: HNVR), the holding company for Hanover Community Bank (“the Bank”), today reported results for the quarter ended June 30, 2025 and the declaration of a $0.10 per share cash dividend on both common and Series A preferred shares payable on August 13, 2025 to stockholders of record on August 6, 2025.

Earnings Summary for the Quarter Ended June 30, 2025

The Company reported net income for the quarter ended June 30, 2025 of $2.4 million or $0.33 per diluted share (including Series A preferred shares), versus $0.8 million (after giving effect to an allowance for credit loss (“ACL”) on an individually evaluated loan of $2.5 million and a $1.1 million provision resulting from ongoing enhancements to the current expected credit loss (“CECL”) model) or $0.11 per diluted share (including Series A preferred shares) in the quarter ended June 30, 2024. Returns on average assets, average stockholders’ equity and average tangible equity were 0.44%, 4.93% and 5.46%, respectively, for the quarter ended June 30, 2025, versus 0.15%, 1.77% and 1.97%, respectively, for the comparable quarter of 2024.

The increase in net income recorded in the second quarter of 2025 from the comparable 2024 quarter resulted from an increase in net interest income and a decrease in provision for credit losses. These were partially offset by the increase in non-interest expenses, particularly compensation and benefits, and an increase in income tax expense. The increase in compensation and benefits expense in the second quarter of 2025 versus the comparable 2024 quarter was primarily related to the staffing of the newly opened Port Jefferson branch and additions to the C&I Banking teams, partially offset by lower incentive compensation expense resulting from reduced lending activity and other expense reduction initiatives. The Company’s effective tax rate was 27.8% in the second quarter of 2025 and 27.2% in the comparable 2024 quarter. We expect a normalized run rate of 25.0% for the remainder of the year.

Net interest income was $14.8 million for the quarter ended June 30, 2025, an increase of $1.5 million, or 11.69% from the comparable 2024 quarter. This increase was due to improvement of the Company’s net interest margin to 2.76% in the 2025 quarter from 2.46% in the comparable 2024 quarter. The cost of interest-bearing liabilities decreased to 3.94% in the 2025 quarter from 4.48% in the comparable 2024 quarter, a decrease of 54 basis points. This decrease was partially offset by a 24 basis point decrease in the yield on interest earning assets to 5.98% in the 2025 quarter from 6.22% in the second quarter of 2024. Net interest income on a linked quarter basis increased $0.2 million or 1.13%, due to an 8 basis point increase in net interest margin resulting from a 7 basis point decrease in cost of interest-bearing liabilities, partially offset by a 3 basis point decrease on yield on interest earning assets.

Earnings Summary for the Six Months Ended June 30, 2025

For the six months ended June 30, 2025, the Company reported net income of $4.0 million or $0.53 per diluted share (including Series A preferred shares), versus $4.9 million or $0.66 per diluted share (including Series A preferred shares) in the comparable 2024 six-month period. The Company recorded adjusted (non-GAAP) net income (excluding core system conversion expenses of $2.6 million, net of tax) of $6.5 million or $0.87 per diluted share in the six months ended June 30, 2025, versus net income of $4.9 million or $0.66 per diluted share in the comparable 2024 six-month period (which included no adjustments). Returns on average assets, average stockholders’ equity and average tangible equity were 0.36%, 4.02% and 4.46%, respectively, for the six months ended June 30, 2025, versus 0.44%, 5.20% and 5.80%, respectively, for the comparable 2024 period. Adjusted (non-GAAP) returns, exclusive of core system conversion expenses on average assets, average stockholders’ equity and average tangible equity were 0.59%, 6.63% and 7.35%, respectively, in the six months ended June 30, 2025, versus 0.44%, 5.20% and 5.80%, respectively, in the comparable of 2024 period.

The decrease in net income recorded for the six months ended June 30, 2025 from the comparable 2024 period is due to an increase in non-interest expenses, particularly compensation and benefits and the one-time core system conversion expenses. These were partially offset by an increase in net interest income and a decrease in provision for credit losses. The increase in compensation and benefits expense for the six months ended June 30, 2025 versus the comparable 2024 period was primarily related to additional headcount to staff the new Port Jefferson branch and expansion of the C&I lending vertical and lower deferred loan origination costs partially offset by lower incentive compensation expense resulting from reduced lending activity. The Company’s effective tax rate decreased to 23.0% for the six months ended June 30, 2025 from 25.3% in the comparable 2024 period.

Net interest income was $29.4 million for the six months ended June 30, 2025, an increase of $3.2 million, or 12.38% from the comparable 2024 period, due to the improvement of the Company’s net interest margin to 2.72% in the 2025 period from 2.43% in the comparable 2024 period. The cost of interest-bearing liabilities decreased to 3.98% in the 2025 six months period from 4.41% in the comparable 2024 period, a decrease of 43 basis points. This decrease was partially offset by a 13 basis point decrease in the yield on interest earning assets to 5.99% in the 2025 period from 6.12% in the comparable 2024 period. The increase in the net interest margin was a result of the late 2024 reductions in the Fed Funds effective rate and the liability sensitive nature of the Bank’s balance sheet.

Michael P. Puorro, Chairman and Chief Executive Officer, commented on the Company’s quarterly results: “Our second quarter performance, reflects a number of high notes, including increased Pre-Provision Net Revenue of $5.7 million, strong non-interest bearing deposit growth of $28.1 million, underscoring the success of our C&I and Municipal banking verticals, and continued improvement in our Net Interest Margin. We are extremely pleased with the recent opening of our Port Jefferson branch and will continue to be opportunistic in furthering our expansion into the underserved markets of Eastern Long Island. With our inclusion in the Russell 2000, the continued development of our diversified revenue verticals and liability sensitive balance sheet, we look forward to delivering continued shareholder value and the eventual benefits of a more favorable interest rate environment.”

Balance Sheet Highlights

Total assets were $2.31 billion at June 30, 2025 and December 31, 2024. Total securities available for sale at June 30, 2025 were $102.6 million, an increase of $18.9 million from December 31, 2024, primarily driven by growth in collateralized mortgage obligations, collateralized loan obligations and corporate bonds.

Total deposits were $1.95 billion at June 30, 2025 and December 31, 2024. Total deposits increased $9.4 million or 0.48% from June 30, 2024. Demand deposits increased $43.8 million or 21.93% from June 30, 2024 and $32.0 million, or 15.12%, from December 31, 2024 underscoring the success of our C&I and Municipal banking verticals. Our loan to deposit ratio improved to 101% at June 30, 2025 from 102% at December 31, 2024.

The Company had $517.4 million in total municipal deposits at June 30, 2025, at a weighted average rate of 3.67% versus $509.3 million at a weighted average rate of 3.72% at December 31, 2024 and $452.6 million at a weighted average rate of 4.61% at June 30, 2024. The Company’s municipal deposit program is built on long-standing relationships developed in the local marketplace. This core deposit business will continue to provide a stable source of funding for the Company’s lending products at costs lower than those of consumer deposits and market-based borrowings. The Company continues to broaden its municipal deposit base and currently services 40 customer relationships.

Total borrowings at June 30, 2025 were $107.8 million, with a weighted average rate and term of 4.11% and 17 months, respectively. At June 30, 2025 and December 31, 2024, the Company had $107.8 million of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at June 30, 2025 and December 31, 2024. The Company had no borrowings outstanding under lines of credit with correspondent banks at June 30, 2025 and December 31, 2024.

Stockholders’ equity was $198.9 million at June 30, 2025 and compared to $196.6 million at December 31, 2024. Retained earnings increased by $2.5 million due primarily to net income of $4.0 million for the six months ended June 30, 2025, which was offset by $1.5 million of dividends declared. The accumulated other comprehensive loss at June 30, 2025 was 0.62% of total equity and was comprised of a $0.7 million after tax net unrealized loss on the investment portfolio and a $0.5 million after tax net unrealized loss on derivatives. Tangible book value per share (including Series A preferred shares) was $23.94 at June 30, 2025 compared to $23.86 at December 31, 2024.

Loan Portfolio

For the six months ended June 30, 2025, the Bank’s loan portfolio decreased $19.1 million to $1.97 billion from December 31, 2024. The decrease resulted primarily from the ongoing management of our commercial real estate and multifamily loan concentrations. On a linked quarter basis, net loans increased $5.8 million. At June 30, 2025, the Company’s residential loan portfolio (including home equity) amounted to $738.8 million, with an average loan balance of $489 thousand and a weighted average loan-to-value ratio of 57%. Commercial real estate (including construction) and multifamily loans totaled $1.08 billion at June 30, 2025, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As will be discussed below, approximately 36% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continues to improve, decreasing to 368% of capital at June 30, 2025 from 385% at December 31, 2024 and 403% at June 30, 2024, with loans secured by office space accounting for 2.48% of the total loan portfolio and totaling $48.9 million at June 30, 2025. The Company’s loan pipeline with executed term sheets at June 30, 2025 is approximately $190.2 million, with approximately 81% being niche-residential, conventional C&I, SBA and USDA lending opportunities.

The Bank remains focused on expanding its core verticals and continues to originate loans for its portfolio and for sale in the secondary market under its residential flow origination program. The Bank originated $62.2 million in residential loans in the quarter ended June 30, 2025. During the quarters ended June 30, 2025 and 2024, the Company sold $23.7 million and $2.9 million, respectively, of residential loans under its flow origination program and recorded gains on sale of loans held-for-sale of $0.5 million and $0.1 million, respectively.

During the quarters ended June 30, 2025 and 2024, the Company sold approximately $22.3 million and $28.0 million, respectively, in government guaranteed SBA loans and recorded gains on sale of loans held-for-sale of $1.8 million and $2.5 million, respectively. SBA loan originations and gains on sale were lower than expected due to a confluence of factors. One factor is the impact of the “higher-for-longer” interest rate environment that we believe has both worsened the financial condition of and reduced demand among small business borrowers, resulting in a lower volume of creditworthy customers. Another factor is the negative impact of and uncertainty created by tariffs, which we believe have also dampened loan demand among borrowers in certain industries. A third factor is the Bank’s decision to tighten credit over the course of the last year. Although management continues to believe this to be a prudent measure, it has nonetheless resulted in a lower volume of loan approvals, causing the Bank to re-evaluate the number and caliber of its business development officers. Taken together these and other factors have adversely impacted SBA loan originations and closings. With the addition of additional business development officers in the second half of 2025, we anticipate higher volumes of eligible loans as we transition into 2026. The Bank concluded the second quarter of 2025 with C&I loan originations of approximately $29.3 million. Based on its existing pipeline, the Bank expects C&I lending and deposit activity to grow as the year progresses.

Commercial Real Estate Statistics

A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multi-Family and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans is minor at $8.2 million, all at floating interest rates. As shown below, 31% of the loan balances in these combined portfolios will either have a rate reset or mature in 2025 and 2026, with another 57% with rate resets or maturing in 2027.

Multi-Family Market Rent Portfolio Fixed Rate Reset/Maturity Schedule										Multi-Family Stabilized Rent Portfolio Fixed Rate Reset/Maturity Schedule
Calendar Period	# Loans		Total O/S ($000’s omitted)		Avg O/S ($000’s omitted)		Avg Interest Rate			Calendar Period	# Loans		Total O/S ($000’s omitted)		Avg O/S ($000’s omitted)		Avg Interest Rate

2025		7	$	8,609	$	1,230		5.29	%	2025		8	$	14,950	$	1,869		4.54	%
2026		36		117,249		3,257		3.66	%	2026		20		42,310		2,115		3.67	%
2027		70		185,157		2,645		4.41	%	2027		51		122,901		2,410		4.22	%
2028		16		21,310		1,332		6.20	%	2028		12		10,117		843		7.14	%
2029		6		4,924		821		7.70	%	2029		4		4,313		1,078		6.38	%
2030+		3		6,667		2,222		3.68	%	2030+		4		1,099		275		6.04	%
Fixed Rate		138		343,916		2,492		4.32	%	Fixed Rate		99		195,690		1,977		4.34	%
Floating Rate		2		347		174		9.50	%	Floating Rate		—		—		—		—	%
Total		140	$	344,263	$	2,459		4.33	%	Total		99	$	195,690	$	1,977		4.34	%

CRE Investor Portfolio Fixed Rate Reset/Maturity Schedule
Calendar Period	# Loans		Total O/S ($000’s omitted)		Avg O/S ($000’s omitted)		Avg Interest Rate

2025		25	$	33,503	$	1,340		7.28	%
2026		30		35,702		1,190		4.90	%
2027		89		156,924		1,763		4.86	%
2028		28		30,868		1,102		6.65	%
2029		4		2,336		584		7.04	%
2030+		15		8,999		600		6.46	%
Fixed Rate		191		268,332		1,405		5.45	%
Floating Rate		6		11,905		1,984		9.50	%
Total CRE-Inv.		197	$	280,237	$	1,423		5.62	%

Stabilized Multi-Family Pro Forma Stress Results

The table below reflects a proforma stressed evaluation of the Bank’s Multifamily stabilized loan portfolio, using the primary assumption for a revised Debt Service Coverage Ratio (“DSCR”) calculation, for all loans where the current interest rate is below 6%. The current balance for these loans is recast at 6% with a 30-year amortization. The chart below reflects the impact of these adjustments on the portfolio. The projected loan to value (“LTV”) assumption resets all loans using a 6% cap rate and the last reported property net operating income (“NOI”) to determine an implied property valuation and based on the current loan balance the resultant LTV.

Multi-Family Stabilized Rent Portfolio
DSCR Range	# Loans	Total O/S ($000’s omitted)		% of Total MF Portfolio		Current Weighted Average LTV		Projected Weighted Average LTV

< 1.0	10	$	18,153	3	%	61	%	95	%
1.0 < x < 1.2	24		69,751	13	%	65	%	74	%
1.2 < x < 1.3	20		34,897	6	%	62	%	67	%
1.3 < x < 1.5	15		38,547	7	%	63	%	61	%
1.5 < x < 2.0	18		25,805	5	%	58	%	53	%
x > 2.0	12		8,537	2	%	43	%	33	%
Total	99	$	195,690	36	%	62	%	67	%

As reflected above, the results show approximately 3%, or 10 loans totaling $18 million of the total multi-family portfolio would have proforma DSCR’s less than 1x while maintaining projected weighted average LTV’s under 100%. Additionally, approximately 97% or 89 loans totaling $178 million would possess DSCR’s greater than 1x while maintaining a projected weighted average LTV well within our policy guidelines. We believe the overall demand for multifamily housing in our market will allow our borrowers to address any adverse impact proactively, as evidenced by the maturities and rate resets in the previous 12 months which have been successfully refinanced with other institutions at market rates similar to those used in the above analysis.

Rental breakdown of Multi-Family portfolio

The table below segments our portfolio of loans secured by Multi-Family properties based on rental terms and location. As shown below, 64% of the combined portfolio is secured by properties subject to free market rental terms, which is the dominant tenant type. Both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New York City boroughs of Brooklyn, the Bronx and Queens.

Multi-Family Loan Portfolio – Loans by Rent Type
Rent Type	# of Notes		Outstanding Loan Balance		% of Total Multi-Family			Avg Loan Size		LTV			Current DSCR		Avg # of Units
			($000’s omitted)					($000’s omitted)

Market		140	$	344,263		64	%	$	2,459		61.8	%		1.41		11
Location
Manhattan		7	$	10,251		2	%	$	1,464		49.4	%		1.88		14
Other NYC		92	$	254,515		47	%	$	2,766		61.7	%		1.40		10
Outside NYC		41	$	79,497		15	%	$	1,939		63.9	%		1.36		14

Stabilized		99	$	195,690		36	%	$	1,977		61.8	%		1.44		12
Location
Manhattan		7	$	10,459		2	%	$	1,494		48.2	%		1.71		19
Other NYC		81	$	168,044		31	%	$	2,075		62.6	%		1.42		11
Outside NYC		11	$	17,187		3	%	$	1,562		63.1	%		1.54		14

Office Property Exposure

The Bank’s exposure to the Office market is minor. Loans secured by office space accounted for 2.48% of the total loan portfolio with a total balance of $48.9 million, of which less than 1% is located in Manhattan. The pool has a 2.48x weighted average DSCR, a 53% weighted average LTV and less than $350,000 of exposure in Manhattan.

Asset Quality and Allowance for Credit Losses

The Bank’s asset quality metrics remain solid. At June 30, 2025, the Bank reported $12.7 million in non-performing loans compared to $16.4 million at December 31, 2024, a decrease of $3.7 million. This decrease resulted primarily from the proactive sale of non-performing loans, satisfactions and the charge-off of a specific reserve established in June 2024 on an individually evaluated commercial loan. At June 30, 2025 non-performing loans were 0.64% of total loans outstanding versus 0.82% at December 31, 2024.

During the second quarter of 2025, the Bank recorded a provision for credit losses expense of $2.4 million (including $187 thousand provision for credit losses on unfunded commitments). Net charge-offs of $3.5 million were incurred during the quarter, of which $2.5 million is attributable to the aforementioned charge-off of a specific reserve on an individually evaluated commercial loan. The June 30, 2025 allowance for credit losses was $21.6 million versus $22.8 million at December 31, 2024. The allowance for credit losses as a percentage of total loans was 1.10% at June 30, 2025 and 1.15% at December 31, 2024.

Net Interest Margin

The Bank’s net interest margin increased to 2.76% for the quarter ended June 30, 2025 compared to 2.68% in the quarter ended March 31, 2025 and 2.46% in the quarter ended June 30, 2024 due to the continuing effects of the late 2024 reductions in the Federal Funds effective rate and the liability sensitive nature of the Bank’s balance sheet.

About Hanover Community Bank and Hanover Bancorp, Inc.

Hanover Bancorp, Inc. (NASDAQ: HNVR), is the bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover offers a complete suite of consumer, commercial, and municipal banking products and services, including multi-family and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Port Jefferson, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Chinatown, New York, and Freehold, New Jersey.

Hanover Community Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call (516) 548-8500 or visit the Bank’s website at www.hanoverbank.com.

Non-GAAP Disclosure

This discussion, including the financial statements attached thereto, includes non-GAAP financial measures which include the Company’s adjusted net income, adjusted basic and diluted earnings per share, adjusted return on average assets, adjusted return on average equity, tangible common equity (“TCE”) ratio, TCE, tangible assets, tangible book value per share, return on average tangible equity and efficiency ratio. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company’s operating results and trends in addition to the results measured in accordance with GAAP, and provides greater comparability across time periods. While management uses non-GAAP financial measures in its analysis of the Company’s performance, this information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other financial institutions.

With respect to the calculations of and reconciliations of adjusted net income, TCE, tangible assets, TCE ratio and tangible book value per share, reconciliations to the most comparable U.S. GAAP measures are provided in the tables that follow.

Forward-Looking Statements

This release may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hanover Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Hanover Bancorp, Inc. may turn out to be incorrect. They can be affected by inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties, including those discussed in our Annual Report on Form 10-K under Item 1A – Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Further, the adverse effect of health emergencies or natural disasters on the Company, its customers, and the communities where it operates may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events.

Investor and Press Contact:
Lance P. Burke
Chief Financial Officer
(516) 548-8500


HANOVER BANCORP, INC.
STATEMENTS OF CONDITION (unaudited)
(dollars in thousands)

		June 30,		March 31,		December 31,
		2025		2025		2024
Assets
Cash and cash equivalents		$	164,535	$	160,234	$	162,857
Securities-available for sale, at fair value			102,636		93,197		83,755
Investments-held to maturity			3,594		3,671		3,758
Loans held for sale			10,593		16,306		12,404

Loans, net of deferred loan fees and costs			1,966,452		1,960,674		1,985,524
Less: allowance for credit losses			-21,571		-22,925		-22,779
Loans, net			1,944,881		1,937,749		1,962,745

Goodwill			19,168		19,168		19,168
Premises & fixed assets			14,388		14,511		15,337
Operating lease assets			10,890		8,484		8,337
Other assets			41,291		38,207		43,749
	Assets	$	2,311,976	$	2,291,527	$	2,312,110

Liabilities and stockholders’ equity
Core deposits		$	1,439,656	$	1,418,209	$	1,456,513
Time deposits			511,625		518,229		497,770
Total deposits			1,951,281		1,936,438		1,954,283

Borrowings			107,805		107,805		107,805
Subordinated debentures			24,716		24,702		24,689
Operating lease liabilities			11,565		9,144		9,025
Other liabilities			17,724		16,795		19,670
	Liabilities		2,113,091		2,094,884		2,115,472

Stockholders’ equity			198,885		196,643		196,638
	Liabilities and stockholders’ equity	$	2,311,976	$	2,291,527	$	2,312,110

HANOVER BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(dollars in thousands, except per share data)

		Three Months Ended				Six Months Ended
		6/30/2025		6/30/2024		6/30/2025		6/30/2024

Interest income		$	32,049	$	33,420	$	64,886	$	65,852
Interest expense			17,254		20,173		35,462		39,670
	Net interest income		14,795		13,247		29,424		26,182
Provision for credit losses			2,357		4,040		2,957		4,340
	Net interest income after provision for credit losses		12,438		9,207		26,467		21,842

Loan servicing and fee income			1,083		836		2,164		1,749
Service charges on deposit accounts			162		114		279		210
Gain on sale of loans held-for-sale			2,298		2,586		4,650		5,092
Gain on sale of investments			–		4		–		4
Other operating income			18		82		200		143
	Non-interest income		3,561		3,622		7,293		7,198

Compensation and benefits			7,003		6,499		14,235		12,061
Conversion expenses			–		–		3,180		–
Occupancy and equipment			1,910		1,843		3,746		3,613
Data processing			508		495		1,101		1,013
Professional fees			878		717		1,665		1,535
Federal deposit insurance premiums			365		365		702		683
Other operating expenses			1,952		1,751		3,983		3,569
	Non-interest expense		12,616		11,670		28,612		22,474

	Income before income taxes		3,383		1,159		5,148		6,566
Income tax expense			940		315		1,184		1,661

	Net income	$	2,443	$	844	$	3,964	$	4,905

Earnings per share (“EPS”):⁽¹⁾
Basic		$	0.33	$	0.11	$	0.53	$	0.66
Diluted		$	0.33	$	0.11	$	0.53	$	0.66

Average shares outstanding for basic EPS ⁽¹⁾⁽²⁾			7,500,871		7,399,816		7,482,307		7,388,021
Average shares outstanding for diluted EPS ⁽¹⁾⁽²⁾			7,506,584		7,449,110		7,488,226		7,438,234

⁽¹⁾ Calculation includes common stock and Series A preferred stock.
⁽²⁾ Average shares outstanding before subtracting participating securities.

HANOVER BANCORP, INC.
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
QUARTERLY TREND
(dollars in thousands, except per share data)

		Three Months Ended
		6/30/2025		3/31/2025		12/31/2024		9/30/2024		6/30/2024

Interest income		$	32,049	$	32,837	$	33,057	$	34,113	$	33,420
Interest expense			17,254		18,208		19,249		21,011		20,173
	Net interest income		14,795		14,629		13,808		13,102		13,247
Provision for credit losses			2,357		600		400		200		4,040
	Net interest income after provision for credit losses		12,438		14,029		13,408		12,902		9,207

Loan servicing and fee income			1,083		1,081		981		960		836
Service charges on deposit accounts			162		117		136		123		114
Gain on sale of loans held-for-sale			2,298		2,352		3,014		2,834		2,586
Gain on sale of investments			–		–		27		–		4
Other operating income			18		182		29		37		82
	Non-interest income		3,561		3,732		4,187		3,954		3,622

Compensation and benefits			7,003		7,232		6,699		6,840		6,499
Conversion expenses			–		3,180		–		–		–
Occupancy and equipment			1,910		1,836		1,810		1,799		1,843
Data processing			508		593		536		547		495
Professional fees			878		787		782		762		717
Federal deposit insurance premiums			365		337		375		360		365
Other operating expenses			1,952		2,031		2,198		1,930		1,751
	Non-interest expense		12,616		15,996		12,400		12,238		11,670

	Income before income taxes		3,383		1,765		5,195		4,618		1,159
Income tax expense			940		244		1,293		1,079		315

	Net income	$	2,443	$	1,521	$	3,902	$	3,539	$	844

Earnings per share (“EPS”):⁽¹⁾
Basic		$	0.33	$	0.20	$	0.53	$	0.48	$	0.11
Diluted		$	0.33	$	0.20	$	0.52	$	0.48	$	0.11

Average shares outstanding for basic EPS ⁽¹⁾⁽²⁾			7,500,871		7,463,537		7,427,583		7,411,064		7,399,816
Average shares outstanding for diluted EPS ⁽¹⁾⁽²⁾			7,506,584		7,469,489		7,456,471		7,436,068		7,449,110

⁽¹⁾ Calculation includes common stock and Series A preferred stock.
⁽²⁾ Average shares outstanding before subtracting participating securities.

HANOVER BANCORP, INC.
CONSOLIDATED NON-GAAP FINANCIAL INFORMATION ⁽¹⁾(unaudited)
(dollars in thousands, except per share data)

	Three Months Ended						Six Months Ended
	6/30/2025			6/30/2024			6/30/2025			6/30/2024

ADJUSTED NET INCOME:
Net income, as reported	$	2,443		$	844		$	3,964		$	4,905
Adjustments:
Conversion expenses		–			–			3,180			–
Total adjustments, before income taxes		–			–			3,180			–
Adjustment for reported effective income tax rate		–			–			608			–
Total adjustments, after income taxes		–			–			2,572			–
Adjusted net income	$	2,443		$	844		$	6,536		$	4,905
Basic earnings per share – adjusted	$	0.33		$	0.11		$	0.87		$	0.66
Diluted earnings per share – adjusted	$	0.33		$	0.11		$	0.87		$	0.66

ADJUSTED OPERATING EFFICIENCY RATIO:
Operating efficiency ratio, as reported		68.73	%		69.18	%		77.93	%		67.33	%
Adjustments:
Conversion expenses		0.00	%		0.00	%		-8.66	%		0.00	%
Adjusted operating efficiency ratio		68.73	%		69.18	%		69.27	%		67.33	%

ADJUSTED RETURN ON AVERAGE ASSETS		0.44	%		0.15	%		0.59	%		0.44	%
ADJUSTED RETURN ON AVERAGE EQUITY		4.93	%		1.77	%		6.63	%		5.20	%
ADJUSTED RETURN ON AVERAGE TANGIBLE EQUITY		5.46	%		1.97	%		7.35	%		5.80	%

⁽¹⁾ 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 in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.

Note: Prior period information has been adjusted to conform to current period presentation.

HANOVER BANCORP, INC.
SELECTED FINANCIAL DATA (unaudited)
(dollars in thousands)

	Three Months Ended						Six Months Ended
	6/30/2025			6/30/2024			6/30/2025			6/30/2024
Profitability:
Return on average assets		0.44	%		0.15	%		0.36	%		0.44	%
Return on average equity ⁽¹⁾		4.93	%		1.77	%		4.02	%		5.20	%
Return on average tangible equity ⁽¹⁾		5.46	%		1.97	%		4.46	%		5.80	%
Pre-provision net revenue return on assets		1.04	%		0.94	%		0.73	%		0.99	%
Yield on average interest-earning assets		5.98	%		6.22	%		5.99	%		6.12	%
Cost of average interest-bearing liabilities		3.94	%		4.48	%		3.98	%		4.41	%
Net interest rate spread ⁽²⁾		2.04	%		1.74	%		2.01	%		1.71	%
Net interest margin ⁽³⁾		2.76	%		2.46	%		2.72	%		2.43	%
Non-interest expense to average assets		2.29	%		2.11	%		2.57	%		2.03	%
Operating efficiency ratio ⁽⁴⁾		68.73	%		69.18	%		77.93	%		67.33	%

Average balances:
Interest-earning assets	$	2,148,782		$	2,162,250		$	2,182,757		$	2,162,543
Interest-bearing liabilities		1,756,316			1,809,991			1,798,958			1,810,195
Loans		1,978,535			2,014,820			1,984,135			1,999,448
Deposits		1,838,947			1,773,205			1,878,969			1,807,924
Borrowings		142,733			231,473			138,224			196,950

⁽¹⁾ Includes common stock and Series A preferred stock.
⁽²⁾ Represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
⁽³⁾ Represents net interest income divided by average interest-earning assets.
⁽⁴⁾ Represents non-interest expense divided by the sum of net interest income and non-interest income.

Note: Prior period information has been adjusted to conform to current period presentation.

HANOVER BANCORP, INC.
SELECTED FINANCIAL DATA (unaudited)
(dollars in thousands, except share and per share data)

	At or For the Three Months Ended
	6/30/2025			3/31/2025			12/31/2024			9/30/2024
Asset quality:
Provision for credit losses – loans ⁽¹⁾	$	2,170		$	600		$	400		$	200
Net (charge-offs)/recoveries		(3,524	)		(454	)		(1,027	)		(438	)
Allowance for credit losses		21,571			22,925			22,779			23,406
Allowance for credit losses to total loans ⁽²⁾		1.10	%		1.17	%		1.15	%		1.17	%
Non-performing loans	$	12,651		$	11,697		$	16,368		$	15,365
Non-performing loans/total loans		0.64	%		0.60	%		0.82	%		0.77	%
Non-performing loans/total assets		0.55	%		0.51	%		0.71	%		0.66	%
Allowance for credit losses/non-performing loans		170.51	%		195.99	%		139.17	%		152.33	%

Capital (Bank only):
Tier 1 Capital	$	203,322		$	201,925		$	201,744		$	198,196
Tier 1 leverage ratio		9.29	%		8.95	%		9.13	%		8.85	%
Common equity tier 1 capital ratio		13.16	%		13.37	%		13.32	%		12.99	%
Tier 1 risk based capital ratio		13.16	%		13.37	%		13.32	%		12.99	%
Total risk based capital ratio		14.41	%		14.62	%		14.58	%		14.24	%

Equity data:
Shares outstanding ⁽³⁾		7,499,243			7,503,731			7,427,127			7,428,366
Stockholders’ equity	$	198,885		$	196,643		$	196,638		$	192,339
Book value per share ⁽³⁾		26.52			26.21			26.48			25.89
Tangible common equity ⁽³⁾		179,495			177,239			177,220			172,906
Tangible book value per share ⁽³⁾		23.94			23.62			23.86			23.28
Tangible common equity (“TCE”) ratio ⁽³⁾		7.83	%		7.80	%		7.73	%		7.49	%

(1) Excludes $187 thousand, $0, $0 and $0 provision for credit losses on unfunded commitments for the quarters ended 6/30/25, 3/31/25, 12/31/24 and 9/30/24, respectively.
(2) Calculation excludes loans held for sale.
(3) Includes common stock and Series A preferred stock.

HANOVER BANCORP, INC.
STATISTICAL SUMMARY
QUARTERLY TREND
(unaudited, dollars in thousands, except share data)

	6/30/2025			3/31/2025			12/31/2024			9/30/2024

Loan distribution ⁽¹⁾:
Residential mortgages	$	715,418		$	708,649		$	702,832		$	719,037
Multifamily		539,573			535,429			550,570			557,634
Commercial real estate – OO		267,223			264,855			261,223			246,458
Commercial real estate – NOO		271,552			280,345			298,517			305,536
Commercial & industrial		148,907			146,050			145,457			149,853
Home equity		23,361			24,914			26,422			26,825
Consumer		418			432			503			470

Total loans	$	1,966,452		$	1,960,674		$	1,985,524		$	2,005,813

Sequential quarter growth rate		0.29	%		-1.25	%		-1.01	%		-0.35	%

CRE concentration ratio		368	%		369	%		385	%		397	%

Loans sold during the quarter	$	46,045		$	46,649		$	53,499		$	43,537

Funding distribution:
Demand	$	243,664		$	215,569		$	211,656		$	206,327
N.O.W.		655,333			698,297			692,890			621,880
Savings		42,860			46,275			48,885			53,024
Money market		497,799			458,068			503,082			572,213
Total core deposits		1,439,656			1,418,209			1,456,513			1,453,444
Time		511,625			518,229			497,770			504,100
Total deposits		1,951,281			1,936,438			1,954,283			1,957,544
Borrowings		107,805			107,805			107,805			125,805
Subordinated debentures		24,716			24,702			24,689			24,675

Total funding sources	$	2,083,802		$	2,068,945		$	2,086,777		$	2,108,024

Sequential quarter growth rate – total deposits		0.77	%		-0.91	%		-0.17	%		0.80	%

Period-end core deposits/total deposits ratio		73.78	%		73.24	%		74.53	%		74.25	%

Period-end demand deposits/total deposits ratio		12.49	%		11.13	%		10.83	%		10.54	%

⁽¹⁾ Excluding loans held for sale

Note: Prior period information has been adjusted to conform to current period presentation.

HANOVER BANCORP, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ⁽¹⁾(unaudited)
(dollars in thousands, except share and per share amounts)

	6/30/2025			3/31/2025			12/31/2024			9/30/2024			6/30/2024
Tangible common equity
Total equity ⁽²⁾	$	198,885		$	196,643		$	196,638		$	192,339		$	190,072
Less: goodwill		(19,168	)		(19,168	)		(19,168	)		(19,168	)		(19,168	)
Less: core deposit intangible		(222	)		(236	)		(250	)		(265	)		(279	)
Tangible common equity ⁽²⁾	$	179,495		$	177,239		$	177,220		$	172,906		$	170,625

Tangible common equity (“TCE”) ratio
Tangible common equity ⁽²⁾	$	179,495		$	177,239		$	177,220		$	172,906		$	170,625
Total assets		2,311,976			2,291,527			2,312,110			2,327,814			2,331,098
Less: goodwill		(19,168	)		(19,168	)		(19,168	)		(19,168	)		(19,168	)
Less: core deposit intangible		(222	)		(236	)		(250	)		(265	)		(279	)
Tangible assets	$	2,292,586		$	2,272,123		$	2,292,692		$	2,308,381		$	2,311,651
TCE ratio ⁽²⁾		7.83	%		7.80	%		7.73	%		7.49	%		7.38	%

Tangible book value per share
Tangible equity ⁽²⁾	$	179,495		$	177,239		$	177,220		$	172,906		$	170,625
Shares outstanding ⁽²⁾		7,499,243			7,503,731			7,427,127			7,428,366			7,402,163
Tangible book value per share ⁽²⁾	$	23.94		$	23.62		$	23.86		$	23.28		$	23.05

⁽¹⁾ 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 in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.

⁽²⁾ Includes common stock and Series A preferred stock.

HANOVER BANCORP, INC.
NET INTEREST INCOME ANALYSIS
For the Three Months Ended June 30, 2025 and 2024
(unaudited, dollars in thousands)

	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost

Assets:
Interest-earning assets:
Loans	$	1,978,535	$	29,785		6.04	%	$	2,014,820	$	31,124		6.21	%
Investment securities		99,448		1,433		5.78	%		99,324		1,534		6.21	%
Interest-earning cash		62,760		695		4.44	%		36,633		497		5.46	%
FHLB stock and other investments		8,039		136		6.79	%		11,473		265		9.29	%
Total interest-earning assets		2,148,782		32,049		5.98	%		2,162,250		33,420		6.22	%
Non interest-earning assets:
Cash and due from banks		9,218							7,979
Other assets		50,164							51,106
Total assets	$	2,208,164						$	2,221,335

Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Savings, N.O.W. and money market deposits	$	1,126,495	$	10,649		3.79	%	$	1,117,029	$	12,667		4.56	%
Time deposits		487,088		5,058		4.17	%		461,489		4,910		4.28	%
Total savings and time deposits		1,613,583		15,707		3.90	%		1,578,518		17,577		4.48	%
Borrowings		118,026		1,221		4.15	%		206,820		2,270		4.41	%
Subordinated debentures		24,707		326		5.29	%		24,653		326		5.32	%
Total interest-bearing liabilities		1,756,316		17,254		3.94	%		1,809,991		20,173		4.48	%
Demand deposits		225,364							194,687
Other liabilities		27,615							25,039
Total liabilities		2,009,295							2,029,717
Stockholders’ equity		198,869							191,618
Total liabilities & stockholders’ equity	$	2,208,164						$	2,221,335
Net interest rate spread						2.04	%						1.74	%
Net interest income/margin			$	14,795		2.76	%			$	13,247		2.46	%

HANOVER BANCORP, INC.
NET INTEREST INCOME ANALYSIS
For the Six Months Ended June 30, 2025 and 2024
(unaudited, dollars in thousands)

	2025							2024
	Average				Average			Average				Average
	Balance		Interest		Yield/Cost			Balance		Interest		Yield/Cost

Assets:
Interest-earning assets:
Loans	$	1,984,135	$	59,769		6.07	%	$	1,999,448	$	60,861		6.12	%
Investment securities		92,681		2,619		5.70	%		97,085		2,991		6.20	%
Interest-earning cash		97,914		2,177		4.48	%		55,652		1,511		5.46	%
FHLB stock and other investments		8,027		321		8.06	%		10,358		489		9.49	%
Total interest-earning assets		2,182,757		64,886		5.99	%		2,162,543		65,852		6.12	%
Non interest-earning assets:
Cash and due from banks		9,360							7,962
Other assets		49,930							50,523
Total assets	$	2,242,047						$	2,221,028

Liabilities and stockholders’ equity:
Interest-bearing liabilities:
Savings, N.O.W. and money market deposits	$	1,171,711	$	22,104		3.80	%	$	1,139,111	$	25,600		4.52	%
Time deposits		489,023		10,378		4.28	%		474,134		9,872		4.19	%
Total savings and time deposits		1,660,734		32,482		3.94	%		1,613,245		35,472		4.42	%
Borrowings		113,524		2,328		4.14	%		172,304		3,546		4.14	%
Subordinated debentures		24,700		652		5.32	%		24,646		652		5.32	%
Total interest-bearing liabilities		1,798,958		35,462		3.98	%		1,810,195		39,670		4.41	%
Demand deposits		218,235							194,679
Other liabilities		26,179							26,499
Total liabilities		2,043,372							2,031,373
Stockholders’ equity		198,675							189,655
Total liabilities & stockholders’ equity	$	2,242,047						$	2,221,028
Net interest rate spread						2.01	%						1.71	%
Net interest income/margin			$	29,424		2.72	%			$	26,182		2.43	%

The MIL Network –

July 24, 2025

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

Source: WTO

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

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

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

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

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MIL OSI Global Banks –

July 24, 2025

MIL-Evening Report: Togo’s ‘Nana-Benz’: how cheap Chinese imports of African fabrics has hurt the famous women traders

Source: The Conversation (Au and NZ) – By Fidele B. Ebia, Postdoctoral fellow, Duke Africa Initiative, Duke University

The manufacturing of African print textiles has shifted to China in the 21st century. While they are widely consumed in African countries – and symbolic of the continent – the rise of “made in China” has undermined the African women traders who have long shaped the retail and distribution of this cloth.

For many decades Vlisco, the Dutch textile group which traces its origins to 1846 and whose products had been supplied to west Africa by European trading houses since the late 19th century, dominated manufacture of the cloth. But in the last 25 years dozens of factories in China have begun to supply African print textiles to west African markets. Qingdao Phoenix Hitarget Ltd, Sanhe Linqing Textile Group and Waxhaux Ltd are among the best known.

We conducted research to establish how the rise of Chinese-made cloth has affected the African print textiles trade. We focused on Togo. Though it’s a tiny country with a population of only 9.7 million, the capital city, Lomé, is the trading hub in west Africa for the textiles.

We conducted over 100 interviews with traders, street sellers, port agents or brokers, government officials and representatives of manufacturing companies to learn about how their activities have changed.

“Made in China” African print textiles are substantially cheaper and more accessible to a wider population than Vlisco fabric. Our market observations in Lomé’s famous Assigamé market found that Chinese African print textiles cost about 9,000 CFA (US$16) for six yards – one complete outfit. Wax Hollandais (50,000 CFA or US$87) cost over five times more.

Data is hard to come by, but our estimates suggest that 90% of imports of these textiles to Lomé port in 2019 came from China.

One Togolese trader summed up the attraction:

Who could resist a cloth that looked similar, but that cost much less than real Vlisco?

Our research shows how the rise of China manufactured cloth has undermined Vlisco’s once dominant market share as well as the monopoly on the trade of Dutch African print textiles that Togolese traders once enjoyed.

The traders, known as Nana-Benz because of the expensive cars they drove, once enjoyed an economic and political significance disproportionate to their small numbers. Their political influence was such that they were key backers of Togo’s first president, Sylvanus Olympio – himself a former director of the United Africa Company, which distributed Dutch cloth.

In turn, Olympio and long-term leader General Gnassingbé Eyadéma provided policy favours – such as low taxes – to support trading activity. In the 1970s, African print textile trade was considered as significant as the phosphate industry – the country’s primary export.

Nana-Benz have since been displaced – their numbers falling from 50 to about 20. Newer Togolese traders – known as Nanettes or “little Nanas” – have taken their place. While they have carved out a niche in mediating the textiles trade with China, they have lower economic and political stature. In turn, they too are increasingly threatened by Chinese competition, more recently within trading and distribution as well.

China displaces the Dutch

Dating back to the colonial period, African women traders have played essential roles in the wholesale and distribution of Dutch cloth in west African markets. As many countries in the region attained independence from the 1950s onwards, Grand Marché – or Assigamé – in Lomé became the hub for African print textile trade.

While neighbouring countries such as Ghana limited imports as part of efforts to promote domestic industrialisation, Togolese traders secured favourable conditions. These included low taxes and use of the port.

Togolese women traders knew the taste of predominantly female, west African customers better than their mostly male, Dutch designers. The Nana-Benz were brought into the African print textile production and design process, selecting patterns and giving names to designs they knew would sell.

They acquired such wealth from this trade that they earned the Nana-Benz nickname from the cars they purchased and which they used to collect and move merchandise.

Nana-Benz exclusivity of trading and retailing of African print textiles cloth in west African markets has been disrupted. As Vlisco has responded to falling revenues – over 30% in the first five years of the 21st century – due to its Chinese competition, Togolese traders’ role in the supply chain of Dutch cloth has been downgraded.

In response to the flood of Chinese imports, the Dutch manufacturer re-positioned itself as a luxury fashion brand and placed greater focus on the marketing and distribution of the textiles.

Vlisco has opened several boutique stores in west and central Africa, starting with Cotonou (2008), Lomé (2008) and Abidjan (2009). The surviving Nana-Benz – an estimated 20 of the original 50 – operate under contract as retailers rather than traders and must follow strict rules of sale and pricing.

While newer Togolese traders known as Nanettes are involved in the sourcing of textiles from China, they have lower economic and political stature. Up to 60 are involved in the trade.

Former street sellers of textiles and other petty commodities, Nanettes began travelling to China in the early to mid-2000s to source African print textiles. They are involved in commissioning and advising on the manufacturing of African print textiles in China and the distribution in Africa.

While many Nanettes order the common Chinese brands, some own and market their own. These include what are now well-known designs in Lomé and west Africa such as “Femme de Caractère”, “Binta”, “Prestige”, “Rebecca Wax”, “GMG” and “Homeland”.

Compared to their Nana-Benz predecessors, the Nanettes carve out their business from the smaller pie available from the sale of cheaper Chinese cloth. Though the volumes traded are large, the margins are smaller due to the much lower final retail price compared to Dutch cloth.

After procuring African print textiles from China, Nanettes sell wholesale to independent local traders or “sellers” as well as traders from neighbouring countries. These sellers in turn break down the bulk they have purchased and sell it in smaller quantities to independent street vendors.

All African print textiles from China arrive in west Africa as an incomplete product – as six-yard or 12-yard segments of cloth, not as finished garments. Local tailors and seamstresses then make clothes according to consumer taste. Some fashion designers have also opened shops where they sell prêt-à-porter (ready-to-wear) garments made from bolts of African print and tailored to local taste. Thus, even though the monopoly of the Nana-Benz has been eroded, value is still added and captured locally.

Since the COVID-19 pandemic, Chinese actors have become more involved in trading activity – and not just manufacturing. The further evolution of Chinese presence risks an even greater marginalisation of locals, already excluded from manufacturing, from the trading and distribution end of the value chain. Maintaining their role – tailoring products to local culture and trends and linking the formal and informal economy – is vital not just for Togolese traders, but also the wider economy.

Rory Horner receives funding from the British Academy Mid-Career Fellowship. He is also a Research Associate at the Department of Geography, Environmental Management and Energy Studies at the University of Johannesburg.

Fidele B. Ebia 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. Togo’s ‘Nana-Benz’: how cheap Chinese imports of African fabrics has hurt the famous women traders – https://theconversation.com/togos-nana-benz-how-cheap-chinese-imports-of-african-fabrics-has-hurt-the-famous-women-traders-260924

MIL OSI Analysis – EveningReport.nz –

July 24, 2025

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

US Senate News:

Source: United States Senator for Arkansas Tom Cotton

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

Cotton, Colleagues Introduce Legislation to Combat Chinese Drone Market Dominance

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

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

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

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

Bill text is here.

The LEAD Act would:

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

MIL OSI USA News –

July 24, 2025

MIL-OSI USA: ICYMI—Hagerty Joins Open Interest on BloombergTV to Discuss Japan Trade Deal, China Negotiations, Appropriations

US Senate News:

Source: United States Senator for Tennessee Bill Hagerty
WASHINGTON—Today, United States Senator Bill Hagerty (R-TN), a member of the Senate Foreign Relations Committee and former U.S. Ambassador to Japan, joined Open Interest on BloombergTVto discuss President Donald Trump’s new trade agreement with Japan, implications for China, and the Senate’s progress on appropriations and crypto legislation.
*Click the photo above or here to watch*Partial Transcript
Hagerty on the significance of the U.S.-Japan trade agreement: “I think this is putting us on a completely new playing field with our allies in Japan. I look forward to what we do with South Korea as well. Japan is going to become a major financier of projects that support all of our national security, our economic security, and our national security. When I was Ambassador to Japan, we negotiated two trade deals with the Japanese. These are not easy to do. And my hats off to the team– Secretary [Scott] Bessent, Secretary [Howard] Lutnick, and Ambassador [Jamieson] Greer– they have done a fantastic job and delivered a terrific deal.”
Hagerty on access for U.S. rice: “The Japanese are difficult to negotiate with, but they keep their word once a deal is made. I know that’s not true in every place in the world, but the Japanese certainly do. I know the negotiations have been tough; I’ve been in rice negotiations with the Japanese in the past. It’s almost a sacred issue in their agricultural sector, but rice has had an incredible run in terms of its price, creating a lot of inflation and pain domestically in Japan. I think this [deal] will be welcomed by the Japanese public to see more rice imported. It will take some of the pressure off the supply constraints that they have right now in the country.”
Hagerty on the implications the U.S.-Japan deal has on China: “This [deal] absolutely makes a huge difference with respect to China. What China can observe is that our allies are working with us, and we’re doing this in a way that maximizes economic opportunity here in the United States, making our nation stronger. A stronger America means that all of our allies benefit from this. It’s a good deal for Japan. Their stock market is up. Our stock market is up. Everybody’s loving this.”
Hagerty on future trade benchmarks: “I’m sure people will jump to that assumption [that 15 percent will become the new benchmark tariff level], but they don’t know the specifics of the deal. That will come down to the hard tax, and we’ll see how the negotiations go. I know that Ambassador Greer, Secretary Bessent, and Secretary Lutnick have spent a tremendous amount of time on this deal. Every deal will be unique. It’s going to be hard to superimpose that, but I’m certain that that’s where the industry will sort of target now that they see this come out with Japan.”
Hagerty on finalizing trade agreements: “Not every single agreement [will be wrapped by Aug. 1], but the ones that matter. They [the White House] have been very focused on delivering agreements with those countries with which we have significant trade deficits. And Secretary Bessent sums it up by saying there are about 18 countries that [trade agreements] matter. I talk often with Ambassador Greer. He’s got term sheets, and he’s been working through a very structured, very disciplined process. I’m optimistic that they will have terms set. I’m not saying they will have the final agreements papered, but the broad terms will be set.”
Hagerty on Senate August recess, nominee backlog, and government funding: “I think that [recess] is up to [Senator] Chuck Schumer. We’ve had maximum resistance from the Democrat side; they have not allowed a single one of our nominees to go through without putting us through maximum procedural hoops. That’s created a backlog. Every president needs to have their team on the ground and ready to go. Chuck Schumer is going to have to ask himself if he is going to keep kowtowing to the far left, or actually stand up and say: here’s what’s good for America. Let’s get it done. I’m ready to work through the weekend. … It’s important to talk to constituents. They elected us. Many of us are in cycle right now, myself included. But at the same time, we have an obligation and a duty to our constituents to make certain the government is functioning. And this resistance movement that tries to deprive the President of the team that he needs to execute is harmful to the economy. It’s harmful to our national security, so we have to address it.”
Hagerty on appropriations and shutdown risk: “An important thing that we never worked on when Chuck Schumer was the leader was putting appropriations bills on the floor. That’s happening this week. We’re looking at the Sept. 30 deadline responsibly. We’re trying to put our appropriation bills on the floor so we don’t wind up with an 11th-hour negotiation that winds up with the government teetering on a shutdown. I don’t think we’ll shut down. But again, that’s up to Chuck Schumer and the resistance movement. … I hope that we’ll be able to come to terms with the Democrats. They have not been willing to negotiate so far as we move on our appropriations bill. That really narrows the space that we’ve got to deal with as we come to the Sept. 30 deadline. It’s possible to get appointees taken care of. We don’t need to shut the government down, but it requires cooperation.”
Hagerty on the GENIUS Act and crypto market structure: “We’re working very hard [on the next phase of digital asset legislation]. We just put out a discussion draft this week on market structure. I’m very proud of my legislation, the GENIUS Act, which opens the door for digital assets in America. Compared to where we were a year ago, it’s a massive change. The U.S. markets are open to digital currencies and blockchain innovation. I’m excited about where we’re going. Our goal is to have this market structure bill move through expeditiously and get it done this fall.”

MIL OSI USA News –

July 24, 2025

MIL-OSI Russia: Sri Lanka to be Special Partner of 22nd China-ASEAN EXPO

Translation. Region: Russian Federal

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

An important disclaimer is at the bottom of this article.

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

NANNING, July 23 (Xinhua) — Sri Lanka will be a special guest country partner of the 22nd China-ASEAN EXPO (CAEXPO) to be held from Sept. 17 to 21 in Nanning, capital of south China’s Guangxi Zhuang Autonomous Region, the expo secretariat confirmed Wednesday.

The event will be attended by a Sri Lankan government delegation led by senior diplomats. The exhibition will feature key Sri Lankan enterprises of national importance, including port operators and spice producers.

The EXPO programme includes a number of events related to Sri Lanka, including a national image exhibition, a product display and a promotional presentation of the country.

The Special Invited Partner Country mechanism, first launched at the 11th CAEXPO, invites participants of the Regional Comprehensive Economic Partnership or Belt and Road Initiative, excluding China and ASEAN countries. This makes the expo a platform to promote exchanges between China, ASEAN and non-regional countries, creating more commercial opportunities. Sri Lanka was previously granted the Special Partner status at the 13th CAEXPO.

Joint projects between China and Sri Lanka currently cover infrastructure, energy, port development and other sectors, helping to strengthen bilateral cooperation and ties in areas such as economics and culture. –0–

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

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MIL OSI Russia News –

July 24, 2025

MIL-OSI Russia: 3 killed in shooting in Northern Ireland

Translation. Region: Russian Federal

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

An important disclaimer is at the bottom of this article.

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

LONDON, July 23 (Xinhua) — Two children and a woman were killed in a shooting incident in Northern Ireland’s County Fermanagh on Wednesday morning, local police said.

All the victims were members of the same family, District Commander Inspector Robert McGowan told a news conference.

“We can advise that there is currently no threat to the public,” a Police Service of Northern Ireland spokesman said.

Law enforcement officials say the motive for the shooting remains unclear. A case of premeditated murder has been opened, and the investigation is in its early stages. –0–

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

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MIL OSI Russia News –

July 24, 2025

MIL-OSI Russia: Breaking: Third round of peace talks between Russian and Ukrainian delegations kicks off in Istanbul

Translation. Region: Russian Federal

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

An important disclaimer is at the bottom of this article.

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

ISTANBUL, July 23 (Xinhua) — The third round of peace talks between Russian and Ukrainian delegations began in Istanbul on Wednesday, Turkish television channel NTV reported from the scene.

Two previous rounds of talks in Istanbul, held on May 16 and June 2, resulted in the exchange of thousands of prisoners of war and the bodies of dead soldiers, but produced little progress on achieving a ceasefire. –0–

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

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MIL OSI Russia News –

July 24, 2025

MIL-OSI Russia: China has always firmly supported UNESCO’s activities – Chinese Foreign Ministry

Translation. Region: Russian Federal

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

An important disclaimer is at the bottom of this article.

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

BEIJING, July 23 (Xinhua) — China has always firmly supported the work of the United Nations Educational, Scientific and Cultural Organization (UNESCO), Foreign Ministry spokesperson Guo Jiakun said Wednesday.

As the diplomat noted at a regular press briefing, China took note that UNESCO and many countries expressed regret over the US decision to withdraw from the organization again. “This is the third time the United States has withdrawn from UNESCO and has not paid its membership dues for a long time. This is not what a responsible country should do,” the official said.

According to Guo Jiakun, UNESCO’s goal is to promote international cooperation in education, science and culture, promote mutual understanding and integration of civilizations, safeguard world peace and achieve common development. China has always firmly supported UNESCO’s activities, the diplomat stressed.

In light of the 80th anniversary of the founding of the UN, China calls on all countries to reaffirm their commitment to multilateralism and, through concrete actions, uphold the international system with the UN at the center, the international order based on international law, and the basic norms of international relations based on the purposes and principles of the UN Charter, Guo Jiakun concluded. –0–

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

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MIL OSI Russia News –

July 24, 2025

MIL-OSI Russia: Chinese team wins RoboCup Humanoid League AdultSize for the first time

Translation. Region: Russian Federal

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

An important disclaimer is at the bottom of this article.

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

BEIJING, July 23 (Xinhua) — A team from China’s Tsinghua University has won first place in the AdultSize category of the Humanoid League of the RoboCup World Robot Football Championship, marking the first time China has won the top prize at the competition.

RoboCup, which has been held since 1997, is one of the most prestigious global robotics competitions. This year, the championship was held in Brazil, with more than 20 teams from 12 countries taking part, including China, the United States, Germany, the Republic of Korea and France.

The Tsinghua team, with its Chinese-developed Booster T1 robots, dominated the competition, winning convincingly against several opponents, including the University of Texas. In the all-Chinese final, Tsinghua University defeated China Agricultural University, giving the Chinese teams first and second place, a triumph for them.

As one of the executives at Booster Robotics, the company that developed the T1 robots, noted, participating in the competition requires not only a lightweight, maneuverable, and impact-resistant design, but also complex functions such as real-time environmental perception, cognitive decision-making, advanced motion control, and interaction between multiple intelligent agents. This means that the championship is a comprehensive test of the full range of robot capabilities.

Industry analysts said the outstanding performance of Chinese robots at the international championship once again demonstrated China’s strong potential in the development and practical application of robotics. –0–

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

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MIL OSI Russia News –

July 24, 2025

MIL-OSI USA: DeGette, Raskin, Auchincloss Introduce Resolution Recognizing U.S. Leadership in Biomedical Research

Source: United States House of Representatives – Congresswoman Diana DeGette (First District of Colorado)

WASHINGTON, D.C. — Today, Reps. Diana DeGette (CO-01), Jamie Raskin (MD-08), and Jake Auchincloss (MA-04) introduced a Congressional resolution recognizing the importance of U.S. leadership in biomedical research and the federal government’s responsibility to protect and expand that leadership in the years to come.

The resolution highlights the historic role the United States has played in advancing medicine and science—from breakthroughs in cancer and HIV treatment to the rapid development of COVID-19 vaccines—and lays out a clear roadmap for how the federal government must act to strengthen biomedical innovation, insulate science from political interference, and improve public health outcomes for all Americans.

“Under the Trump administration, American leadership in biomedical research—which has saved countless lives through groundbreaking cures—has been under assault,” said DeGette. “NIH has long been the gold standard in biomedical research, and from the cure for hepatitis C to cutting-edge gene therapies, we’ve seen what’s possible when our scientists are empowered to pursue bold ideas and answer urgent medical challenges. But that progress is at risk of catastrophe. If we want to remain the global leader in innovation, the Trump administration must end its anti-science agenda, focus on empowering scientists, and ensure scientific inquiry is protected from political meddling.”

“Our resolution puts America back in position to lead in the biomedical research field and to protect this critical work from political interference,” said Raskin. “For the health and wellbeing of our people, the Trump Administration must stop its brutal onslaught against science, research, public health and the federal workforce.”

“America has led the world in biomedical research and innovation because it funds curiosity-driven basic science, elevates peer review over politics, and protects intellectual property,” said Auchincloss. “Congress either renews these commitments — or hands over biomedical leadership to China.

“As a nation, we have led the world in biomedical advancement for decades. This did not happen by accident–it happened through the unified support of presidents, congress, and the American public. By creating a publicly funded ecosystem where our best and brightest could pursue answers to problems that have followed humanity since our beginning, we have saved millions of lives. We cannot separate the benefits of this ecosystem from our committed investment in it,” said Stand Up for Science Founder and Executive Director Collete Delawalla.

“From working to find cures for rare diseases, cancers, and Alzheimer’s to conducting basic research that will form the basis of future biomedical breakthroughs, UAW members at the NIH and at academic research institutions across the country do lifesaving research every day,” said Rajiv Sicora, Legislative Director for the UAW. “But their work is under attack by the Trump administration’s attempts to gut the federal government’s role in scientific research, undermine scientific integrity and academic freedom, and decimate workers’ rights. We thank Congresswoman DeGette, Congressman Raskin, and Congressman Auchincloss for their clear-eyed attention to this crisis and their efforts to protect federal investments in biomedical research.”

The resolution emphasizes the indispensable role of the National Institutes of Health (NIH), the world’s largest public funder of biomedical research, and calls for a doubling of federal biomedical investment over the next decade. It also urges Congress to prioritize workforce development, scientific independence, and translational research that brings lab discoveries directly into patient care.

The resolution also warns of recent political interference in scientific processes, including during the Trump administration, which has undermined grantmaking, delayed clinical trials, and politicized agency leadership—threatening long-term public health and global competitiveness.

The full resolution can be found here.

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MIL OSI USA News –

July 24, 2025

MIL-OSI USA: King, Colleagues Introduce Bipartisan Resolution Calling on U.S. Senate to Ratify Global Ocean Governing Agreement

US Senate News:

Source: United States Senator for Maine Angus King
WASHINGTON, D.C. — U.S. Senator Angus King (I-ME), co-chair of the Senate Arctic Caucus, has introduced a bipartisan resolution urging the U.S. Senate to ratify the United Nations Convention on the Law of the Sea (UNCLOS). UNCLOS, which has been ratified by 170 parties, defines the rights and responsibilities of nations regarding the world’s oceans — including guidelines for businesses and the management of marine natural resources — and provides a legal framework to protect those rights while avoiding conflict.
“America is an Arctic Nation, but as we fail to assert our rights on the global stage, we allow rival countries to seize opportunities in our maritime territory that should rightfully be ours,” said U.S. Senate Arctic Caucus Co-Chair Senator Angus King (I-ME). “Signing on to the United Nation Convention on the Law of the Sea would give us our rightful seat at the table for international conversations about territorial rights, navigation, environmental protections and economic opportunities — especially in the race for critical minerals that will unlock our technological future. Every military official and diplomatic appointee I have met with has said that America joining the Law of the Sea Treaty would assist in advancing America’s interests, increase our supply chain resilience, and strengthen our national security. The High North offers historical possibilities for America’s future, but we are holding ourselves back by standing still.”
UNCLOS — sometimes referred to as the “constitution of the oceans” — is a comprehensive legal framework governing all uses of the world’s oceans and seas, and their resources. It also allows for further development of specific areas of the law of the sea. It is the globally recognized framework for dealing with all matters relating to the law of the sea, governing areas including, but not limited to, environmental control, marine scientific research, economic and commercial activities, and the settlement of disputes relating to ocean matters. Without American agreement to the treaty, the United States cannot enforce their maritime boundaries and rights against nations like China, Japan, and India investing in icebreakers and other High North hardware.
The treaty was opened for signature on December 10, 1982, and was entered into force on November 16, 1994. The United States signed UNCLOS on July 29, 1994, but the U.S. Senate has not yet voted to ratify the treaty, despite urging from environmental, scientific, labor, and industry organizations.
In addition to Senator King, the resolution was cosponsored by Senators Mazie Hirono (D-HI), Lisa Murkowski (R-AK), Tim Kaine (D-VA), Chris Van Hollen (D-MD), Bill Cassidy (R-LA) and Todd Young (R-IN). The full text of the resolution is available here.
As Co-Chair of the U.S. Senate Arctic Caucus, Senator King is an advocate for Maine and America’s interests in the North Atlantic and Arctic region — with Maine being the first port in the contiguous 48 states that will see increased traffic via activity in northern waters. Along with Caucus co-chair Senator Lisa Murkowski (R-AK), King introduced the Arctic Commitment Act in 2022 to improve America’s posture and opportunities in the Arctic. He has been calling for the appointment of an Arctic Ambassador since 2015, and pushed for the confirmation of the first Arctic Ambassador last year. King also laid out the challenges and opportunities of a warming arctic in an article in the Wilson Quarterly, and in last year’s National Defense Authorization Act, he successfully secured the inclusion of provisions including funding authorizations for University of Maine to increase America’s activity and opportunities in the Far North. Earlier this year, in a hearing of the Senate Armed Services Committee (SASC), Senator King warned the Commander of the United States European Command of the “looming threat” of Arctic aggression.

MIL OSI USA News –

July 24, 2025

MIL-OSI USA: Chairman Mast Delivers Opening Remarks at Hearing on State Department Bureau of Political Affairs

Source: US House Committee on Foreign Affairs

Media Contact 202-321-9747

WASHINGTON, D.C. – Today, House Foreign Affairs Committee Chairman Brian Mast delivered opening remarks at a full committee hearing titled, “FY26 State Department Posture: Bureau of Political Affairs.”

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-Remarks-

Under the Biden administration, the State Department, in my opinion, operated without clear lines of command. I believe that it blurred responsibilities in many cases and had a culture that prioritized process over the outcomes that the State Department would produce.

I would use the DEI office as an example, where they were worried about what the bucket of applicants looked like, rather than the outcomes of those applicants and what they were delivering for the American taxpayer. That was a direct quote from the former DEI Secretary Abercrombie-Winstanley.

That has changed under President Trump and Secretary Rubio.

This Committee is working to restore real command and control at the State Department—something that the Pentagon has had for decades, and something that the State Department desperately needs.

We’re crafting the first comprehensive, standalone State Department Authorization bill in over twenty years—this is not meant as a gesture, it is meant as a serious institutional overhaul.

We’re not doing this for symbolism; we’re doing it because there needs to be common sense and logic within our diplomacy.

Our goal is simple: bring order, bring clarity, and bring effectiveness to a department that too often prioritized institutional interests above the American interest.

A perfect example is how members of Congress in too many cases are more concerned about somebody being fired from the State Department after 10-15 years of employment. When they should be asking how productive those employees were and what were the measurable outcomes that were provided by them approving transgender operas, or drag show tutorials, or DEI musicals, or LGBTQ comic books abroad.

Under President Biden, the Department suffered from a structural identity crisis. Maybe policy was developed by one group, altered by another, and implemented by a third, often with no clear authority or accountability. Turf wars between regional and functional bureaus slowed everything down.

The Under Secretary for Political Affairs is treated as “first among equals,” but that phrase itself reveals to me a problem: too many equals, not enough leadership. No mission succeeds without a chain of command, and I believe that diplomacy is no exception.

The State Department must operate like a strategic institution with a clear hierarchy, mission clarity, decisive leadership, and measurable outcomes. It should not be a think tank that looks at the world as an academic exercise with no measurable outcomes.

And our reforms aim to do just that.

Some will resist this. They’ll defend the status quo as if it’s sacred. But we’ve seen what that status quo produces: mission drift, strategic confusion, and a sprawling bureaucracy that’s often more focused on virtue signaling than actually projecting American strength abroad.

Let us be clear: this is not about copying the Pentagon—it’s about applying common sense. At DOD, policy is made at the top through a chain of command that is recognizable to everybody.

At the State Department, that discipline has been missing. We don’t expect the State Department to be soldiers in uniform, but we should expect it to have a command structure that is recognizable and followed.

We can’t afford what has happened to happen again — not when adversaries like China and Iran are using every tool at their disposal to undermine American power, we can’t have foreign service officers that free lance social experimentation.

Our vision is straightforward. Functional bureaus and undersecretaries should focus on developing policy, clear, coherent, and grounded in national interest. Regional bureaus, with their area expertise, should adapt and execute that policy on the ground. This creates a clear flow of authority, streamlines operations, and ensures accountability at every level.

What we have had are regional bureaus providing loose oversight of embassies that frequently operate like personal fiefdoms rather than the implementing arm of the State Department. Under President Biden, we had embassies funding gender inclusive leadership through ultimate frisbee in India for $100K or spending $425K to help Indonesian coffee companies be more gender and climate friendly.

This hearing is part of a broader effort to realign the State Department with the mission it was meant to serve: putting America First as the State Department of the United States of America. That requires more than tweaks—it requires structural change, cultural change, and a willingness to change the old order.

I want to thank our witness for appearing today, and we look forward to your insight as we take the first steps toward restoring command and control, discipline, and mission focus at the United States Department of State.

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MIL OSI USA News –

July 24, 2025

MIL-OSI Russia: 6 people drowned in incident at mining and processing plant in northern China

Translation. Region: Russian Federal

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

An important disclaimer is at the bottom of this article.

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

HOHHOT, July 23 (Xinhua) — Six students drowned on Wednesday after falling into a flotation tank during a study tour to a copper-molybdenum processing plant in north China’s Inner Mongolia Autonomous Region, the local emergency management department said.

According to the Hulunbuir City Emergency Management Bureau, the accident occurred at around 10:20 a.m. Wednesday at a plant owned by mining company China National Gold Group Co, Ltd. Several students from Northeastern University were observing the flotation process when the grating collapsed, trapping them in the flotation cell.

All six were pulled out, but doctors confirmed their death. A teacher was also injured in the incident.

Work is underway to eliminate the consequences of the tragedy. –0–

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

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MIL OSI Russia News –

July 24, 2025

MIL-OSI Russia: Pakistani PM expresses readiness for dialogue with India

Translation. Region: Russian Federal

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

An important disclaimer is at the bottom of this article.

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

ISLAMABAD, July 23 (Xinhua) — Pakistani Prime Minister Shahbaz Sharif on Wednesday reiterated Pakistan’s readiness for a meaningful dialogue with India on all outstanding issues, the Prime Minister’s Office said.

Sh. Sharif made this statement during a meeting in Islamabad with British High Commissioner to Pakistan Jane Marriott.

The prime minister also welcomed the British government’s decision to resume Pakistan International Airlines flights, saying it would make travel easier for the Pakistani diaspora in the UK. –0–

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

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MIL OSI Russia News –

July 24, 2025

MIL-OSI Asia-Pac: SCST congratulates Ryan Choi on winning gold medal in World Championships

Source: Hong Kong Government special administrative region

The Secretary for Culture, Sports and Tourism, Miss Rosanna Law, today (July 24) congratulated Hong Kong China fencer Ryan Choi on winning a gold medal in the Men’s Foil Individual event of the 2025 Fencing World Championships.

Miss Law said, “Ryan made impressive performance in the competition, demonstrating Hong Kong athletes’ charm and perseverance. We are thrilled by his achievement in winning Hong Kong’s first ever gold medal in the Fencing World Championships. I hope the Hong Kong China fencing team will continue to strive for excellence. I have faith in them to perform spectacularly again in the 15th National Games to be held in November.”

MIL OSI Asia Pacific News –

July 24, 2025

MIL-OSI Russia: “Dialogue of Civilizations between SCO Countries – 2025” Held in Tianjin

Translation. Region: Russian Federal

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

An important disclaimer is at the bottom of this article.

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

TIANJIN, July 23 (Xinhua) — The “2025 SCO Dialogue of Civilizations” was held in north China’s Tianjin on Wednesday, jointly organized by the State Council Information Office, the Foreign Language Publication and Dissemination Office of China and the Secretariat of the Shanghai Cooperation Organization (SCO). The event is aimed at deepening mutual understanding and strategic trust, and promoting the building of a closer SCO community with a shared future.

More than 300 guests from government departments, think tanks, culture, art, education and other fields from SCO member countries attended the event and held an in-depth exchange of views on the theme “Promoting the Global Initiative of Civilizations – Building a Beautiful Common Home of the SCO”.

SCO Deputy Secretary General Sohail Khan noted that humanitarian exchanges and people’s diplomacy are embedded in the SCO’s founding documents. The event reflects the organization’s mission to create platforms for mutual understanding, mutual learning and mutual respect for the peoples of Eurasian countries.

Vice-Rector of the Diplomatic Academy of the Ministry of Foreign Affairs of the Kyrgyz Republic Zainidin Kurmanov noted that in the context of a complex and turbulent international situation, the global initiative of civilizations, consonant with the “Shanghai spirit”, calls for respect for the diversity of world civilizations, promotion of universal values, and strengthening of international cultural exchanges and cooperation. The initiative is the key to understanding and building a community of shared destiny for humanity.

First Deputy Chairman of the State Duma Committee on International Affairs, Deputy Chairman of the Central Committee of the Communist Party of the Russian Federation Dmitry Novikov said that China, through practical actions, is helping the SCO confidently move forward in the direction of unity and mutual trust, peace and tranquility, prosperity and development, good-neighborliness and friendship, as well as equality and justice. He expressed hope for the further implementation of a new type of inter-civilizational dialogue to stimulate mutual learning, mutual enrichment and mutual respect.

“As the large SCO family expands, we must continuously develop platforms for dialogue among the media, think tanks, cultural and youth circles, fully involve representatives of all spheres in the friendly interaction of the SCO, stimulating their initiative and enthusiasm, and pass on from generation to generation the spirit of SCO friendship based on eternal good-neighborliness and mutual assistance,” said Du Zhanyuan, Director of the PRC Foreign Language Literature Publication and Distribution Office.

The event included three thematic sub-forums on sustainable development, preservation of cultural heritage and multi-format exchange in the field of visual arts. Following the event, a report was presented on “Common Digital Civilization Community: Chinese Initiatives and the Future of the SCO” and the Tianjin Initiative “Joint Defense of Civilization: SCO Youth in Action”.

On the sidelines of today’s meeting, the 8th SCO Chinese Calligraphy Exhibition, the SCO Sculpture Exhibition “Light of Unity in Harmony” and the Tianjin Intangible Cultural Heritage Exhibition were also held, which fully demonstrated the diversity of cultures of the SCO countries and their mutual enrichment. -0-

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

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MIL OSI Russia News –

July 24, 2025

MIL-OSI Russia: Investing in China for a Win-Win Future Has Become a Broad Consensus Among Global Investors: China Foreign Ministry

Translation. Region: Russian Federal

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

An important disclaimer is at the bottom of this article.

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

BEIJING, July 23 (Xinhua) — Investing in China for the future with mutual benefits has become a broad consensus among global investors, Chinese Foreign Ministry spokesperson Guo Jiakun said Wednesday.

Guo Jiakun pointed out that the Chinese side invites companies from all countries to participate in Chinese-style modernization, achieving more significant results and greater progress in the process of integration into high-quality development.

A recent report released by the US-China Business Council shows that 82 percent of US companies in China will post a profit in 2024. While many companies said their biggest concerns were uncertainty in Sino-US relations and tariffs, the Chinese market remains vital to them.

Commenting on this information, Guo Jiakun said that as of March 2025, 1.24 million foreign-invested companies had been established in China, with a total investment of nearly US$3 trillion.

“By promoting China’s reform and opening up, these companies will enjoy broad growth opportunities and significant returns on investment,” the diplomat said, adding that statistics show that the number of newly established foreign-invested enterprises in China has seen a double-digit increase in the first half of 2025.

Guo Jiakun noted that the just-concluded 3rd China International Supply Chain Expo saw the number of participating countries and regions increase to 75, while the first such event saw only 55 countries and regions.

The number of American participants increased by 15 percent compared to the previous exhibition, which allowed the United States to maintain its leadership among foreign exhibitors. Among the foreign companies represented, more than 65 percent are included in the Fortune Global 500 list or are industry leaders.

“Foreign-invested enterprises are expressing their confidence in China’s economic prospects through their concrete actions,” Guo Jiakun emphasized.

The diplomat added that the Chinese government recently introduced new measures to encourage foreign investment, demonstrating sincerity and determination in promoting high-level opening-up. –0–

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

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MIL OSI Russia News –

July 24, 2025

Category: China

China displaces the Dutch