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Category: Europe

  • MIL-OSI United Kingdom: Prime Minister secures thousands of British jobs and £6 billion in investment and export wins as historic trade deal with India signed

    Source: United Kingdom – Executive Government & Departments

    Press release

    Prime Minister secures thousands of British jobs and £6 billion in investment and export wins as historic trade deal with India signed

    Today, the Prime Minister will welcome nearly £6 billion in new investment and export wins.

    • Thousands of jobs created for Brits through new Indian investment and export wins worth almost £6 billion
    • New figures show that £4.8bn trade deal will unlock economic growth for each region and nation of the UK – delivering on the government’s Plan for Change
    • UK and India also agree to ramp up joint efforts against organised crime and illegal migration with new framework to tackle trafficking, document fraud and remove barriers to return

    Today, the Prime Minister will welcome nearly £6 billion in new investment and export wins, which will create over 2,200 British jobs across the country as Indian firms expand their operations in the UK and British companies secure new business opportunities in India. These deals will drive jobs in high-growth sectors like aerospace, technology and advanced manufacturing – supporting engineers, technicians and supply chain workers, in every corner of the UK.

    It comes as the Prime Minister is set to meet the Prime Minister of India, Narendra Modi, today for the signing of the landmark UK-India trade deal. From Coventry to Carlisle, new analysis shows communities across every region of the UK will benefit from its £4.8 billion increase to UK GDP each year.

    Thanks to the deal, British workers will enjoy a collective uplift in wages of £2.2 billion each year and could also see cheaper prices and more choice on clothes, shoes, and food products.

    The UK already imports £11 billion in goods from India, but liberalised tariffs on Indian goods will make it easier and cheaper to buy their best products. For businesses, this could mean potential savings when importing components and materials used in areas such as advanced manufacturing or luxury and consumer goods.

    Prime Minister Keir Starmer said:

    Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change.

    We’re putting more money in the pockets of hardworking Brits and helping families with the cost of living, and we’re determined to go further and faster to grow the economy and raise living standards across the UK.

    India’s average tariff on UK products will drop from 15% to 3% which means British companies selling products to India from soft drinks and cosmetics to cars and medical devices will find it easier to sell to the Indian market.

    Whisky producers will benefit from tariffs slashed in half, reduced immediately from 150% to 75% and then dropped even further to 40% over the next ten years – giving the UK an advantage over international competitors in reaching the Indian market.

    Business and Trade Secretary Jonathan Reynolds said:

    The billions brought to our economy from the trade deal signed today will reach all regions and nations of the UK so working people in every community can feel the benefits.

    The almost £6 billion in new investment and export wins announced today will deliver thousands of jobs and shows the strength of our partnership with India as we ensure the UK is the best place in the world to invest and do business.

    This government is proving time and again that we can deliver on our mission to grow the economy, put more money in pockets and boost living standards under our Plan for Change.

    The two Prime Ministers have also signed a renewed Comprehensive and Strategic Partnership, which will see closer collaboration on defence, education, climate, technology and innovation. This comes exactly one year since the countries signed the landmark UK-India Technology Security Initiative, which sees joint work on telecoms security and unlocking investment across emerging technologies – telecoms, critical minerals, AI, quantum, health/bio tech, advanced materials and semiconductors.

    The UK and India have also agreed to strengthen cooperation in tackling corruption, serious fraud, organised crime, and irregular migration through enhanced intelligence sharing and operational collaboration. This includes committing to finalising a groundbreaking new criminal records sharing agreement, facilitating the exchange of criminal records to support criminal proceedings, maintain accurate watchlists and enable the enforcement of travel bans. These measures represent a significant step forward in joint efforts to combat organised immigration crime.

    Aligned with the UK’s recent Industrial and Trade Strategies, the deal will support the sectors which drive the most growth for the economy. The UK’s large and varied manufacturing sectors will benefit from tariffs cut on aerospace (as high as 11% reduced to 0%), automotives (up to 110% down to 10% under a quota) and electrical machinery (from up to 22% down to either 0% of a 50% reduction).

    A reduction in tariffs, combined with a reduction in regulatory barriers to trade between the UK and India are estimated to:

    • Increase UK exports to India by nearly 60% in the long run – this is equivalent to an additional £15.7 billion of UK exports to India when applied to projections of future trade in 2040.

    • Increase bilateral trade by nearly 39% in the long run, equivalent to £25.5 billion a year, when compared to 2040 projected levels of trade in the absence of an agreement

    The clean energy industry will have brand new, unprecedented access to India’s vast procurement market as the country makes the switch to renewable energy and continues to see growing energy demand.  

    For financial and professional business services, locked in access will offer certainty to expand in India’s growing market and measures such as binding India’s foreign investment cap for the insurance sector, ensuring UK financial services companies are treated on an equal footing with domestic suppliers. 

    Meanwhile, 26 British companies have secured new business in India. Airbus & Rolls-Royce will soon begin delivering Airbus aircraft – with over half powered by Rolls-Royce engines – to major Indian airlines as part of around £5 billion worth of contracts recently agreed. These orders will help sustain hundreds of jobs across their respective sites in Filton, Broughton and Derby. 

    18 firms have confirmed new investment including Zerowatt Energy, AI powered energy intelligence platform is setting up its Global HQ in Leicester. The firm will invest £10m and create 50 new jobs across Leicester, Manchester, Edinburgh and London over the next three years. 

    Other UK and Indian businesses who have confirmed almost £6 billion in new investments and export deals today creating over 2,200 jobs across the UK includes:  

    • Carbon Clean, a UK-based leader in carbon capture, with projected UK export contributions of £83 million over the next five years, has invested £7.6 million in a Global Innovation Centre in Mumbai. This ODI and export wins will unlock 250 jobs across London, Glasgow and Huddersfield as well as 100 jobs in Mumbai. 
    • AI and data services company, DCube AI, is investing £5 million in the UK, unlocking 50 jobs across Manchester and London in the next three years to strength its technology offering to UK customers.
    • Occuity, an innovative UK AI healthcare company has partnered with Remidio Innovative Solutions Pvt. Ltd., a leading Indian manufacturer and distributor of ophthalmic medical devices to bring Occuity’ s cutting-edge ophthalmic screening technologies to India, improving access to innovative and non-invasive eye screening and leading to an export value of £74.3 million over 5 years. 
    • Johnson Matthey, a UK-based leader in chemicals and sustainable technologies, has secured recent contracts of over £20 million for process licensing, engineering, and catalysts supply in India. The company will also invest £4 million in a new plant at Taloja (Maharashtra) and in doubling its capacity at an existing site in Panki, Uttar Pradesh, with contracts are helping to create up to 20,000 jobs in India during the construction phase of these projects.
    • Marcus Evans Group, a global business intelligence and summits business company established its new Global Technology office in Mumbai to serve its 59 offices worldwide and has confirmed a combined Export (£42mn) and ODI (£27mn) win of £69 million over the next five years from India. 
    • LTIMindtree , a global technology consulting and digital solutions company plans to further expand its London operations by adding over 300 highly skilled jobs, investing £1m. This includes a state-of-the-art AI innovation studio and showcase lab. 
    • Aurionpro, a global enterprise technology leader in Banking, Payments, Insurance, Data Centers, and Public Sector technology is investing over £20M to launch its UK HQ, creating 150+ high-value jobs in multiple locations across UK over 3 years. It will also open AI-powered R&D labs in collaboration with top UK universities to develop next-gen transport technology and lead the global Safe Superintelligence (SSI) movement, ensuring AI is built safely and ethically.

    Tufan Erginbiligic, Rolls-Royce CEO, said:

    India is an important market for our business, with over 90 years of partnership with Indian industry and the Indian Government. We welcome the provisions in this Free Trade Agreement, including those that bring closer alignment with international standards for trade in civil aerospace. These agreements will benefit Rolls-Royce and our customers, paving the way for future aerospace growth in India.

    Nik Jhangiani, Interim Chief Executive, Diageo, said:

    This agreement marks a great moment for both Scotch and Scotland, and we’ll be raising a glass of Johnnie Walker to all those who have worked so hard to get it secured.

    William Bain, Head of Trade Policy at the BCC, said:

    The signing of this agreement is a clear signal of the UK’s continuing commitment to free and fair trade. It will open a new era for our businesses and boost investment between two of the world’s largest economies.   

    Currently around 16,000 UK companies are trading goods with Indian companies, and there is high interest in our Chamber Network to grow that.  This deal will create new opportunities in the transport, travel, creative and business support sectors alongside traditional strengths in finance and professional services.

    Jean-Etienne Gourgues, Chivas Brothers Chairman and CEO, said:

    Signature of the UK-India FTA is a sign of hope in challenging times for the spirits industry.  India is the world’s biggest whisky market by volume and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s.  

    The deal will support long term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade. Let’s hope that both governments will move quickly to ratification so business can get to work implementing the deal!

    Updates to this page

    Published 23 July 2025

    MIL OSI United Kingdom –

  • 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.

    .

    MIL OSI Russia News –

  • MIL-OSI USA: Ricketts on the Senate Floor: Iran Doesn’t Need More Time – It Needs More Pressure.  The E3 Should Snapback As Soon As Possible.

    US Senate News:

    Source: United States Senator Pete Ricketts (Nebraska)
    WASHINGTON, D.C. – Today, in a speech on the Senate floor, U.S. Senator Pete Ricketts (R-NE) urged European allies to reject Iran’s threats and delaying tactics during upcoming talks on the Iranian nuclear program. The speech was given in support of a resolution, cosponsored by 19 other Senators, that calls for the E3 (United Kingdom, France, and Germany) to trigger the snapback of UN sanctions against Iran as soon as possible.
    Watch the video here
    “Iran cannot have a nuclear weapon,” said Ricketts.  “This has been a red-line for decades, going back to President Clinton.  And the reason is because the results would be catastrophic.”
    “Iran is as weak now as it has ever been since the 1980s, and probably weaker,” said Ricketts.  “[Trump’s] strikes have delayed Iran’s path to a nuclear weapon by a few years.  But in order to seize this moment, the U.S. and our allies must impose maximum pressure to the highest extent possible to force Iran to agree to permanently and verifiably end its nuclear program, including its capacity to enrich uranium.”
    “Our European allies have said they are prepared to trigger snapback by the end of August if no firm, tangible, and verifiable nuclear commitments from Iran are in place,” said Ricketts.  “This is being done in close coordination with the Trump administration, which continues to pursue diplomatic talks with Iran.  I commend our allies for setting a deadline.  However, this path is under a timeline that leaves little room for error.  Unsurprisingly, the Iranian regime is resorting to its longstanding playbook to delay, to delay, to delay and prevent snapback from happening.  Later this week, the Iranians are scheduled to meet with the E3 in Istanbul.  There are rumors that discussions could center on what conditions the E3 would postpone snapback.  But I stand today to urge our European friends to hold the line and not bend to Iranian threats or be fooled by Iranian assurances.”
    “A window now exists to completely change the trajectory of the Middle East for the better,” concluded Ricketts.  “But that window will close unless we convince Iran that its nuclear weapons program will never be tolerated, period.  That’s why this resolution urges the E3 to snapback sanctions as soon as possible.  We must not let Iran off the hook.”

    MIL OSI USA News –

  • MIL-OSI United Kingdom: The prolonged suffering will have irreversible consequences that will last generations: Joint statement on conflict and hunger in Gaza

    Source: United Kingdom – Executive Government & Departments 3

    Speech

    The prolonged suffering will have irreversible consequences that will last generations: Joint statement on conflict and hunger in Gaza

    A joint statement by the Permanent Missions to the UN of the Dominican Republic, Estonia, France, Germany, Guyana, Ireland, Mexico, the Kingdom of the Netherlands, Norway, Sierra Leone, Slovenia, Spain, Sweden, Switzerland and the United Kingdom.

    It is unacceptable that man-made and avoidable conflict-induced hunger continues to afflict civilians in Gaza. The prolonged suffering will have irreversible consequences that will last generations.

    From the May IPC Special Snapshot, we know that the Gaza Strip is facing a critical risk of famine. The entire population is facing high levels of acute food insecurity, with 500,000 people facing starvation and more than 70,000 children set to require treatment for acute malnutrition. 

    The latest figures are even more disturbing, and we are witnessing increased deaths due to malnutrition. This follows sustained denial of essential humanitarian assistance to civilians by Israel.

    To address this crisis, we call on all parties to fully comply with their obligations under international law, including international humanitarian law. In particular, we call on Israel as the occupying power to adhere to its obligations under international law and UN Security Council Resolution 2417. Israel must:

    • Lift its restrictions on humanitarian aid and facilitate immediate, safe, rapid, unhindered and sustained humanitarian access by the UN and humanitarian organisations that ensures relief supplies at scale to civilians in need throughout Gaza.
    • Facilitate the effective delivery of life-saving nutrition, health, water, sanitation and other essential services by the UN and humanitarian organisations, as well as the fuel needed to sustain them.
    • Protect objects necessary for food production and distribution and facilitate the restoration of essential commercial supplies and market systems at scale.
    • Urgently ensure the protection of civilians, including aid workers, UN and associated personnel, and medical personnel, and allow their unrestricted access.

    We urge all parties to do everything to support efforts to reach agreement on a new ceasefire and hostage release deal. While humanitarian assistance is essential, the answer to conflict-induced hunger is peace.

    We need to ensure accountability for actors who deliberately cause or prolong conflict-induced hunger in violation of international law. Using starvation of civilians as a method of warfare may constitute a war crime.

    All Member States should use their influence to address conflict-driven hunger in Gaza and promote compliance by all parties to the conflict with international law.

    We call for rapid and full implementation of humanitarian commitments made by Israel including the steps agreed between Israel and the EU to improve the humanitarian situation in Gaza. This is imperative. We will follow delivery measures by Israel closely.

    We must all support the work of the UN-coordinated humanitarian system in Gaza led by OCHA. It is best equipped to ensure aid is delivered to civilians, apply established strong aid diversion prevention systems and adhere with humanitarian principles.

    UNRWA remains crucial to the delivery of humanitarian aid and essential services, despite increasing restrictions and attacks.

    The new Israel-approved aid delivery model is dangerous and is not operating in accordance with humanitarian principles. We condemn the killing of well over 800 Palestinians, including children, seeking water and food. 

    The 20 July incident where people came under Israeli fire beside a WFP convoy was terrible. Humanitarian action must be based on humanity, neutrality, impartiality and independence.

    We condemn the heinous attack by Hamas on October 7 2023. Hamas must release all hostages unconditionally now.

    Immediate action is needed to address this debilitating suffering.

    Updates to this page

    Published 23 July 2025

    MIL OSI United Kingdom –

  • MIL-OSI United Nations: UN rights mission deplores deadly Russian strikes in Ukraine

    Source: United Nations 2-b

    According to the UN mission, the overnight assault from Saturday into Sunday – one of the largest of its kind since Russia’s full-scale invasion in February 2022 – resulted in civilian casualties and damage to homes and infrastructure across 10 regions of Ukraine, including the capital, Kyiv.

    At least three children were among those killed and nine children were reported injured. The mission is currently working to verify the full extent of the casualties and the broader impact of the attack.

    “With at least 78 people reported killed or injured across the country, last night’s attack tragically demonstrates the persistent deadly risk to civilians of using powerful weapons in urban areas, including those far away from the frontline,” Danielle Bell, HRMMU Head, said in a news release on Sunday.

    “It is yet another addition to the staggering human toll this war continues to inflict on civilians, with more families across the country now grieving their losses.”

    No place is safe

    Matthias Schmale, the UN Humanitarian Coordinator for Ukraine, also voiced deep concern over the civilian suffering.

    “I am horrified that yet again civilians – among them children – were killed in last night’s massive attacks,” he said in a statement posted on the social media platform X.

    “Across Ukraine, no place is safe. Homes and civilian infrastructure were hit. Grateful to humanitarian NGOs and state services who are immediately supporting affected people. Civilians must never be a target.”

    Use of long-range weapons

    Ukrainian authorities reported that the Russian armed forces launched at least 367 missiles and loitering munitions during the night, in a coordinated attack with air, sea and land-based systems.

    The strike followed a similar assault the previous night, which had mainly targeted the Kyiv region.

    HRMMU noted that the use of long-range weapons in urban areas has been a major driver of civilian casualties in March and April. While the number of casualties in May had been somewhat lower than April before the latest attack, the toll from this weekend’s strikes will add to the monthly figures.

    MIL OSI United Nations News –

  • MIL-OSI United Nations: UN condemns deadly Russian strikes on Ukrainian capital as civilian toll mounts

    Source: United Nations 2-b

    According to the UN Human Rights Monitoring Mission in Ukraine (HRMMU), more than 30 locations across seven districts of Kyiv were struck in what it described as “the deadliest attack” on the Ukrainian capital in nearly a year.

    “Last night’s attack exemplifies the grave threat posed by the tactic of deploying missiles and large numbers of drones simultaneously into populated areas,” said Danielle Bell, Head of HRMMU.

    Humanitarian Coordinator for Ukraine, Matthias Schmale, also strongly condemned the attacks, which extended to Odesa, Zaporizhzhia and other areas.

    “The people of Ukraine should not have to take cover in shelters night after night,” he said. “Each day, the war takes a devastating toll on civilians.”

    In the southern port city of Odesa, strikes reportedly injured several civilians and damaged a kindergarten and a centre for children with special needs – places where children should feel safe. In Zaporizhzhia, residential buildings were hit.

    First responders and humanitarian agencies are already on the ground, providing emergency care and supplies while assessing further needs.

    Human toll rising

    The barrage included 440 long-range drones and 32 missiles launched by Russian forces, HRMMU noted in a news release citing information from Ukrainian authorities, of which 175 drones and 14 missiles targeted Kyiv.

    It marked the fourth time this month that more than 400 munitions were fired in a single night – far surpassing the 544 total launched during the entire month of June 2024.

    Even before this latest attack, the human toll of such tactics had been rising sharply. HRMMU had already verified at least 29 civilian deaths and 126 injuries from long-range weapons in June alone.

    The overall civilian casualty count in the first five months of 2025 is nearly 50 per cent higher than in the same period last year.

    Mr. Schmale reiterated that attacks on civilians and civilian infrastructure are prohibited under international humanitarian law.

    “Civilians, including children, must never be a target,” he said. “We must not normalize the war.”

    Refugee crisis deepens

    Meanwhile, the broader humanitarian crisis continues to deepen. The intense conflict, now in its third year since Russia’s full-scale invasion, has driven more than 6.3 million Ukrainians to seek refuge across Europe.

    Most are women, children, and older persons, many of whom rely on temporary protection directives extended by host countries like the European Union (EU) and Moldova, according to a report released on Tuesday by Office of the UN High Commissioner for Refugees (UNHCR).

    Noting the volatile situation in Ukraine, the agency urged the respective governments to maintain legal status for refugees until conditions allow for safe, dignified, and sustainable returns.

    MIL OSI United Nations News –

  • MIL-OSI Analysis: How public development banks could narrow inequality gaps between the Global North and South

    Source: The Conversation – Canada – By Alicja Paulina Krubnik, PhD Candidate, Political Science, McMaster University

    The United Nations’ Fourth International Conference on Financing for Development (FFD4) recently concluded in Seville, Spain. It gathered global leaders from government, development, academia and civil society to discuss key barriers to sustainable development and shape collaborative efforts to address them.

    FFD4 comes at a crucial time, when the Action Agenda from the last FFD3, set 10 years ago, must be built upon and upheld. With only five years left to meet the UN’s Sustainable Development Goals (SDGs), more than 80 per cent are off track. More tangibly, 2030 is a key deadline for global emissions reduction.

    The global aid environment is also in crisis, just as low- and middle-income countries face mounting pressures due to the interconnected impacts of climate change, environmental damage, poverty and inequality.

    Boosting global co-operation

    FFD4 was an opportunity to revitalize and transform international development co-operation to help states meet these challenges and pursue sustainable development.

    Achieving this requires more than decarbonizing development financing. FFD4 faced its most testing challenge yet: how to reform the global financial systems that direct development resources.

    Key factors include aligning funding with the sustainable development needs of low- and middle-income countries, increasing access to long-term concessional financing — loans or other forms of financing provided on terms more favourable than those in the market — and reducing public debt burdens.

    Public development banks offer crucial leadership here. They provide affordable financing, direct resources where urgently needed and align funding with long-term development strategies, giving them significant potential to democratize project ownership.

    Urgent human development needs

    At the FFD4 gathering, many representatives, especially from Global South and climate-vulnerable countries, highlighted the inadequacy of development financing. Seedy Keita, the minister for finance and economic affairs from The Gambia, told the conference that as developing countries are being urged to invest more in climate and human development initiatives, they lack the tools to do so.

    The countries facing the worst climate impacts also struggle with urgent human development needs. Adapting to and mitigating climate breakdown are inseparable from economic and social development, with human welfare — access to food, water and clean air, avoiding displacement and the safety of women and girls — intimately linked to climate.

    Yet climate-vulnerable states receive a small share of global development financing, particularly for adaptation projects that yield lower returns. Additionally, resources for building value-added industries in low- and middle-income countries remain insufficient.

    Scant commitment to action

    Simply increasing financing is not enough. At the launch of the latest SDGs Report, UN Secretary General António Guterres stated:

    “There is something fundamentally wrong in the structure of the economic and financial architecture and in the way it operates to the detriment of developing countries.”

    In short, it’s too rigid and unresponsive to the Global South’s unique needs, ultimately constraining their ability to act on the SDGs.

    The most ambitious and pressing outcome of FFD4, the “Sevilla Commitment,” addresses key issues in efforts to reform international financial systems but lacks commitment to strong, transformative action.

    Too much priority is given to enabling low- and middle-income countries to access private finance for development. Using public development finance to mobilize private investments and lending has failed to close the financing gap.

    Poverty and inequality worsens

    Private support for the structural green transformation needed for long-term economic development in low- and middle-income countries remains inadequate, widening the divide between the Global North and South. The strategy of catalyzing private finance has shifted risk to public balance sheets while reserving most of the profits for private, often multinational corporations — what’s known as “de-risking.”

    A privatized development strategy has pushed fiscal austerity measures on Global South countries to access international capital markets to fund development initiatives. Many of these countries are struggling with alarming debt, forcing them to divert scarce funds from essential services like health and education to service debts, which worsens poverty and inequality.

    FFD4’s efforts to create a fairer debt system include scaling up debt swaps and forming an alliance between creditor countries and multilateral banks to implement debt “pause clauses” during crises. While many states called for deeper debt reforms and a UN convention on sovereign debt, several wealthy countries resisted bold changes.

    They largely overlooked the Global North’s climate debt — estimated at $192 trillion. The Sevilla Commitment proposes launching a UN-led intergovernmental process, opening a potential path for creditor action.

    As Spain’s economy minister put it, FFD4 is a “launchpad for action” not a “landing zone.”

    Directing money to where it’s needed most

    Public development banks have the potential to lead this action for a more prosperous and equitable future. They can mobilize under-utilized public resources more economically, rapidly and effectively to serve development goals in a climate-forward way.

    These banks can direct finance to where it’s most needed, aligning with development priorities across diverse low- and middle-income countries.

    Public development banks are also well-positioned to co-ordinate at multilateral, regional and national levels and to align global decarbonization goals to local demands. The largest coalition of banks, the Finance in Commons group, was recognized in the Sevilla Commitment. The group called for strengthening public development banks’ co-operation and leadership at the FFD4. Already a leader in global climate financing, further co-ordination among public debate banks could amplify its impact.



    Read more:
    Your essential guide to climate finance

    Supporting green, equitable development

    Structural change requires the long-term, affordable and counter-cyclical financing that public development banks can provide.

    For indebted developing countries facing high borrowing costs, steadfast concessional financing is crucial. Beyond finance, public development banks have a privileged role in knowledge formation and dissemination, which can be leveraged alongside their financial power to support green and equitable development.

    As public organizations, public development banks offer greater potential for transparency and accountability to democratic decision-making, aligning financing with public values. Beyond simply de-risking, these banks can leverage their financial power to generate broader public benefits.

    Alicja Paulina Krubnik receives funding from the Social Sciences and Humanities Research Council and the International Development Research Centre.

    – ref. How public development banks could narrow inequality gaps between the Global North and South – https://theconversation.com/how-public-development-banks-could-narrow-inequality-gaps-between-the-global-north-and-south-261160

    MIL OSI Analysis –

  • MIL-OSI USA: Gov. Kemp Announces TCSG, USG Sign First Articulation Agreement Since Passage of Top State for Talent Act

    Source: US State of Georgia

    ATLANTA – Governor Brian Kemp today announced that the Technical College System of Georgia (TCSG) and the University System of Georgia (USG) signed an articulation agreement to help nursing students seamlessly advance their education and careers, the first of its kind following the passage of HB 192, the Top State for Talent Act. The agreement allows graduates of TCSG’s associate degree in nursing programs to transfer directly into participating USG institutions to complete a Bachelor of Science in Nursing (BSN), establishing a true 2+2 transfer model between the two systems.

    “Georgia’s success as the No. 1 state for business depends on a strong pipeline of talent, especially in critical fields like healthcare,” said Governor Brian Kemp. “This agreement between TCSG and USG is a perfect example of how our state is working together to expand opportunities for students, strengthen our workforce, and ensure that every Georgian has the opportunity to succeed.”

    Governor Kemp has made aligning the state’s workforce pipeline with the needs of employers a top priority. The Top State for Talent Initiative, including the state’s first unified high-demand career list, seeks to bring private and public sector leaders together to help Georgians pursue the opportunities available to them statewide.

    This partnership between TCSG and USC supports the initiative by developing and retaining a highly skilled healthcare workforce. Under the agreement, students who graduate from a TCSG college with an Associate of Science in Nursing (ASN) will be eligible for admission into BSN programs at participating USG institutions. This streamlined transition offers students a cost-effective and accessible option to continue their education without interruption or loss of credit.

    “With this agreement, we’re eliminating barriers and opening doors for more Georgians to pursue rewarding careers in nursing,” said TCSG Commissioner Greg Dozier. “It’s a strategic move that helps our students, our healthcare partners, and our communities—especially as we work together to fill critical nursing shortages across the state.”

    “Georgia’s growing population means a greater demand for healthcare, and this partnership helps meet it by preparing more nurses, especially in rural and underserved areas,” said USG Chancellor Sonny Perdue. “As we align programs, we’re making it easier for students to grow their skills. It’s a smart investment that drives student success, expands access to care, and builds a more prosperous Georgia.”

    In addition to easing the transition between systems, the agreement expands career pathways for students by creating a clear route from an associate degree to a bachelor’s degree in one of the state’s most in-demand fields. It is part of a broader strategy by TCSG and USG to increase educational attainment and create upward mobility for students pursuing careers in high-demand industries, including nursing, healthcare, and allied health professions.

    For more information, visit www.tcsg.edu or www.usg.edu.

    MIL OSI USA News –

  • MIL-OSI USA: Florida Man Sentenced for Decades-Long Scheme to Defraud the IRS

    Source: US State Government of Utah

    A Miami man was sentenced today to 60 months in prison for conspiring to defraud the United States by concealing millions of dollars in assets and income in undisclosed Swiss bank accounts and claiming to the IRS that those assets were not his and instead belonged to foreign nationals.

    The following is according to court documents and statements made in court: between 1985 and 2020, Dan Rotta, a dual Brazilian and U.S. citizen, hid more than $20 million in assets in dozens of secret Swiss accounts at five different Swiss banks, including UBS, Credit Suisse, Bank Bonhôte, and Bank Julius Baer. The accounts were held in his own name, in the names of sham structures, and, in one instance, a pseudonym. Over the years, Rotta earned tens of millions of dollars of income from these assets that he did not report on his tax returns and used to fund his lavish lifestyle. He caused a substantial tax loss to the IRS.

    Rotta employed increasingly elaborate schemes to keep his accounts hidden. Over the years, he kept his accounts open, in part, by falsely representing that he was not a U.S. citizen, leveraging his Brazilian citizenship to claim he was a Brazilian citizen residing in Brazil.

    Starting in 2008, after it was reported publicly that UBS and its bankers were under criminal investigation for helping U.S. taxpayers evade their taxes, Rotta closed his UBS account and moved his funds to Credit Suisse and Bank Bonhôte.

    In 2011, after the IRS obtained records related to one of Rotta’s Swiss accounts, he nominally changed the documentation of his accounts at Credit Suisse and Bank Bonhôte to make it appear that his co-conspirator, a Brazilian national and resident, owned the assets in the accounts. Despite the change, Rotta continued to control the assets and transferred millions of dollars out of those accounts for his use.

    Shortly after Rotta changed the account documentation, the IRS  audited him. During the audit, Rotta falsely denied that he owned the assets in the foreign financial accounts and, instead, claimed that the millions of dollars he withdrew from the accounts were non-taxable loans from foreign nationals. Rotta provided the IRS with fake promissory notes and false affidavits from the foreign nationals to corroborate his claims. During the audit, Rotta continued to use the funds in his foreign accounts to fund his lifestyle in the United States, but to conceal his use of the funds from the IRS, he often routed transfers from his foreign accounts through nominee accounts and attorney trust fund accounts in the United States.

    The IRS did not believe Rotta’s story and assessed millions of dollars of additional taxes as well as penalties and interest against him. Rotta sought to reverse the assessments by filing a false petition in U.S. Tax Court. In that petition, Rotta, through his attorney, falsely denied having any foreign accounts and attached fictitious loan documents. Furthermore, the nominee account owners traveled to the United States to retell the false loan story to IRS attorneys.

    In 2017, after Rotta presented the false evidence that the purported loans had been repaid, the IRS reversed the deficiencies and agreed that he owed no additional tax. Unbeknownst to the IRS, however, the “loan repayments” were fake: the funds that Rotta purportedly repaid went back into accounts that he controlled shortly after the IRS dismissed the suit. Also, as part of the conspiracy, Rotta had his U.S.-based attorneys create sham trust structures that he used to transfer his assets to the United States without alerting the IRS. On paper, it appeared that Rotta’s co-conspirator funded the trusts for Rotta’s benefit. In reality, Rotta funded the trusts with transfers from his Swiss accounts.

    In 2019, Rotta became aware that the IRS would receive additional account records from Switzerland that contradicted the false claims that he had previously made. In an attempt to avoid criminal liability, Rotta applied to participate in the IRS’s voluntary disclosure practice. Under that practice, taxpayers who failed to comply with their tax and reporting obligations could make timely, accurate, and complete disclosures of their conduct, which might offer a path to resolve their non-compliance and limit their criminal exposure. Rotta made false statements in his submission, including falsely claiming that the assets in the Swiss accounts mostly belonged to others, and that any funds provided to him were non-taxable gifts. Rotta also falsely claimed that the nominee account owner gifted Rotta money because that nominee had no children to benefit from the funds. In fact, that nominee had two children.

    In addition to his prison sentence, U.S. District Judge Rodney Smith for the Southern District of Florida ordered Rotta to serve three years of supervised release. The court will determine restitution at a later date.

    Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, U.S. Attorney Hayden O’Byrne for the Southern District of Florida, and Executive Special Agent in Charge Kareem Carter of IRS Criminal Investigation (IRS-CI) Washington, D.C. Field Office made the announcement.

    Special Agents from IRS-CI’s International Tax & Financial Crimes specialty group, a team based out of Washington, D.C., and dedicated to uncovering international tax crimes, investigated the case.

    Senior Litigation Counsels Sean Beaty and Mark Daly, Trial Attorney William Montague, and former Trial Attorney Patrick Elwell of the Tax Division, as well as Senior Litigation Counsel Christopher J. Clark for the Southern District of Florida, prosecuted the case.

    MIL OSI USA News –

  • MIL-OSI Security: Florida Man Sentenced for Decades-Long Scheme to Defraud the IRS

    Source: United States Attorneys General 1

    A Miami man was sentenced today to 60 months in prison for conspiring to defraud the United States by concealing millions of dollars in assets and income in undisclosed Swiss bank accounts and claiming to the IRS that those assets were not his and instead belonged to foreign nationals.

    The following is according to court documents and statements made in court: between 1985 and 2020, Dan Rotta, a dual Brazilian and U.S. citizen, hid more than $20 million in assets in dozens of secret Swiss accounts at five different Swiss banks, including UBS, Credit Suisse, Bank Bonhôte, and Bank Julius Baer. The accounts were held in his own name, in the names of sham structures, and, in one instance, a pseudonym. Over the years, Rotta earned tens of millions of dollars of income from these assets that he did not report on his tax returns and used to fund his lavish lifestyle. He caused a substantial tax loss to the IRS.

    Rotta employed increasingly elaborate schemes to keep his accounts hidden. Over the years, he kept his accounts open, in part, by falsely representing that he was not a U.S. citizen, leveraging his Brazilian citizenship to claim he was a Brazilian citizen residing in Brazil.

    Starting in 2008, after it was reported publicly that UBS and its bankers were under criminal investigation for helping U.S. taxpayers evade their taxes, Rotta closed his UBS account and moved his funds to Credit Suisse and Bank Bonhôte.

    In 2011, after the IRS obtained records related to one of Rotta’s Swiss accounts, he nominally changed the documentation of his accounts at Credit Suisse and Bank Bonhôte to make it appear that his co-conspirator, a Brazilian national and resident, owned the assets in the accounts. Despite the change, Rotta continued to control the assets and transferred millions of dollars out of those accounts for his use.

    Shortly after Rotta changed the account documentation, the IRS  audited him. During the audit, Rotta falsely denied that he owned the assets in the foreign financial accounts and, instead, claimed that the millions of dollars he withdrew from the accounts were non-taxable loans from foreign nationals. Rotta provided the IRS with fake promissory notes and false affidavits from the foreign nationals to corroborate his claims. During the audit, Rotta continued to use the funds in his foreign accounts to fund his lifestyle in the United States, but to conceal his use of the funds from the IRS, he often routed transfers from his foreign accounts through nominee accounts and attorney trust fund accounts in the United States.

    The IRS did not believe Rotta’s story and assessed millions of dollars of additional taxes as well as penalties and interest against him. Rotta sought to reverse the assessments by filing a false petition in U.S. Tax Court. In that petition, Rotta, through his attorney, falsely denied having any foreign accounts and attached fictitious loan documents. Furthermore, the nominee account owners traveled to the United States to retell the false loan story to IRS attorneys.

    In 2017, after Rotta presented the false evidence that the purported loans had been repaid, the IRS reversed the deficiencies and agreed that he owed no additional tax. Unbeknownst to the IRS, however, the “loan repayments” were fake: the funds that Rotta purportedly repaid went back into accounts that he controlled shortly after the IRS dismissed the suit. Also, as part of the conspiracy, Rotta had his U.S.-based attorneys create sham trust structures that he used to transfer his assets to the United States without alerting the IRS. On paper, it appeared that Rotta’s co-conspirator funded the trusts for Rotta’s benefit. In reality, Rotta funded the trusts with transfers from his Swiss accounts.

    In 2019, Rotta became aware that the IRS would receive additional account records from Switzerland that contradicted the false claims that he had previously made. In an attempt to avoid criminal liability, Rotta applied to participate in the IRS’s voluntary disclosure practice. Under that practice, taxpayers who failed to comply with their tax and reporting obligations could make timely, accurate, and complete disclosures of their conduct, which might offer a path to resolve their non-compliance and limit their criminal exposure. Rotta made false statements in his submission, including falsely claiming that the assets in the Swiss accounts mostly belonged to others, and that any funds provided to him were non-taxable gifts. Rotta also falsely claimed that the nominee account owner gifted Rotta money because that nominee had no children to benefit from the funds. In fact, that nominee had two children.

    In addition to his prison sentence, U.S. District Judge Rodney Smith for the Southern District of Florida ordered Rotta to serve three years of supervised release. The court will determine restitution at a later date.

    Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, U.S. Attorney Hayden O’Byrne for the Southern District of Florida, and Executive Special Agent in Charge Kareem Carter of IRS Criminal Investigation (IRS-CI) Washington, D.C. Field Office made the announcement.

    Special Agents from IRS-CI’s International Tax & Financial Crimes specialty group, a team based out of Washington, D.C., and dedicated to uncovering international tax crimes, investigated the case.

    Senior Litigation Counsels Sean Beaty and Mark Daly, Trial Attorney William Montague, and former Trial Attorney Patrick Elwell of the Tax Division, as well as Senior Litigation Counsel Christopher J. Clark for the Southern District of Florida, prosecuted the case.

    MIL Security OSI –

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

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

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

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

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

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

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

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

    Five arms, no brain, no eyes or heart

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

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

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

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

    Deep-sea lifestyles

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

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

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

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

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

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

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

    How eggs and larvae roam the globe

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

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

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

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

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

    A patchwork of deep-sea life

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

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

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

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

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

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

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

    MIL OSI Analysis – EveningReport.nz –

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

    Translation. Region: Russian Federal

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

    An important disclaimer is at the bottom of this article.

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

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

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

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

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

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

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

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

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

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

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

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

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

    .

    MIL OSI Russia News –

  • MIL-OSI 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.

    .

    MIL OSI Russia News –

  • 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.

    .

    MIL OSI Russia News –

  • 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 –

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

    Source: US State of South Carolina

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

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

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

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

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

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

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

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

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

    You can read their brief here.

    MIL OSI USA News –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

    Second Quarter 2025 Highlights:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Review of Income Statement

    Consolidated Income Statement

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

    Net Interest Income/Net Interest Margin

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

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

    Provision for Credit Losses

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

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

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

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

    Other Operating Income

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

    Other Operating Expenses

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

    Income Tax Provision

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

    Community Banking

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

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

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

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

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

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


    Home Mortgage Lending

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

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

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

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

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

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

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

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

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

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

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

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

    Specialty Finance

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

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

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

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

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


    Balance Sheet Review

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

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

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

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

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

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

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

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

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

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

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

    Asset Quality

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

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

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

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

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

    About Northrim BanCorp

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

    www.northrim.com

    Forward-Looking Statement

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

    https://www.bea.gov/

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

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

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

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

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

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

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

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

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

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

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

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


    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

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


    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

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


    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

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


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

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


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

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

    Net interest margin on a tax equivalent basis

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

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

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

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

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

    Tangible Book Value Per Share

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

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


    Tangible Common Equity to Tangible Assets

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

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

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

    The MIL Network –

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

    US Senate News:

    Source: United States Senator for Kansas Roger Marshall

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

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

    MIL OSI USA News –

  • MIL-OSI: QCR Holdings, Inc. Announces Net Income of $29.0 Million for the Second Quarter of 2025

    Source: GlobeNewswire (MIL-OSI)

    Second Quarter 2025 Highlights

    • Net income of $29.0 million, or $1.71 per diluted share
    • Adjusted net income1of $29.4 million, or $1.73 per diluted share
    • NIM TEY1expanded four basis points to 3.46%
    • Adjusted ROAA1of 1.29% annualized
    • Capital markets revenue growth of 51% on a linked-quarter basis
    • Nonperforming assets declined $5.5 million, or 11%
    • Tangible book value per share1grew $1.64, or 13% annualized
    • TCE/TA ratio1improved 22 basis points to 9.92%

    MOLINE, Ill., July 23, 2025 (GLOBE NEWSWIRE) — QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $29.0 million and diluted earnings per share (“EPS”) of $1.71 for the second quarter of 2025, compared to net income of $25.8 million and diluted EPS of $1.52 for the first quarter of 2025.

    Adjusted net income1 and adjusted diluted EPS1 for the second quarter of 2025 were $29.4 million and $1.73, respectively, for the first quarter of 2025 compared to $26.0 million and $1.53, respectively, for the first quarter of 2025 and $29.3 million, and $1.73 respectively for the second quarter of 2024.

      For the Quarter Ended    
      June 30, March 31, June 30,    
    $ in millions (except per share data)  2025  2025  2024    
    Net Income $ 29.0 $ 25.8 $ 29.1    
    Diluted EPS $ 1.71 $ 1.52 $ 1.72    
    Adjusted Net Income1 $ 29.4 $ 26.0 $ 29.3    
    Adjusted Diluted EPS1 $ 1.73 $ 1.53 $ 1.73    

    “We delivered strong second quarter results highlighted by a significant increase in net interest income from the previous quarter, driven by both net interest margin expansion and strong loan growth, as well as improved capital markets revenue, and disciplined noninterest expense management,” said Todd Gipple, President and Chief Executive Officer. “These robust results led to continued capital accretion and a substantial increase in tangible book value per share1.”

    Significant Net Interest Income Growth as Margin Expansion Continues

    Net interest income for the second quarter of 2025 totaled $62.1 million, an increase of $2.1 million, or 14% annualized, from the first quarter of 2025, driven by strong earning asset growth, expanded yield on loans and investments, and lower cost of funds.   Net interest margin (“NIM”) was 2.97% and NIM on a tax-equivalent yield (“TEY”) basis1 was 3.46% for the second quarter, as compared to 2.95% and 3.42% for the prior quarter, respectively.

    “Our NIM TEY1 increased four basis points from the first quarter of 2025, which was at the top of our guidance range,” said Nick Anderson, Chief Financial Officer. “Looking ahead, we anticipate continued margin expansion and are guiding to an increase in third quarter NIM TEY1 in a range from static to an increase of four basis points, assuming no Federal Reserve rate cuts,” added Mr. Anderson.

    Improving Noninterest Income Driven by Capital Markets Revenue

    Noninterest income for the second quarter of 2025 was $22.1 million, up from $16.9 million in the first quarter of 2025. The Company generated $9.9 million of capital markets revenue in the second quarter of 2025 compared to $6.5 million in the prior quarter. Wealth management revenue totaled $4.6 million, representing a slight decline from the first quarter of 2025. However, it increased $332 thousand or 8% compared to the second quarter of 2024 and rose 23% year-to-date on an annualized basis compared to the same period in 2024.

    “During the second quarter of 2025 we saw improved low-income housing tax credit (“LIHTC”) lending activity compared to the first quarter as clients adjusted to the current environment. This increased activity drove 51% growth in our capital markets revenue. The sustained, long-term demand for affordable housing continues to support our LIHTC lending and related capital markets revenue. Our pipeline continues to improve as clients adapt to the evolving market conditions,” said Mr. Gipple.

    “Given the strengthened pipeline, we are reaffirming our guidance for Capital Markets revenue to be in a range of $50 to $60 million for the next four quarters.  In addition, we are also providing guidance over a shorter horizon and expect capital markets revenue for the third quarter to be fully back to a more normalized level and in a range of $13 to $16 million for the quarter,” added Mr. Gipple.

    Disciplined Noninterest Expense Management

    Noninterest expense for the second quarter of 2025 totaled $49.6 million compared to $46.5 million for the first quarter of 2025 and $49.9 million for the second quarter of 2024. The $3.1 million linked-quarter increase was primarily due to higher capital markets revenue and strong loan growth resulting in an improved return on average assets which drove higher variable compensation. Professional and data processing expenses also increased and were related to the Company’s digital transformation.   

    “While expenses increased compared to the first quarter, we held noninterest expense under the low end of our guidance range of $50 to $53 million, highlighting our expense flexibility,” said Mr. Anderson. “Noninterest expense remains well managed, down 9% year to date on an annualized basis compared to the same period in 2024. The Company’s efficiency ratio1 was 58.9% in the second quarter. For the third quarter of 2025, we expect noninterest expense to be in the range of $52 to $55, million which includes certain costs associated with our digital transformation and assumes both capital markets revenue and loan growth are within our guidance range,” added Mr. Anderson.

    Strong Loan Growth

    In the second quarter of 2025, the Company’s total loans and leases held for investment grew by $102.6 million, to $6.9 billion. “Loan growth was 8% annualized when adding back the impact from the planned runoff of m2 Equipment Finance loans and leases. Second quarter loan growth was driven by both our LIHTC and traditional lending businesses. Our pipeline is strong, and we anticipate loan demand to increase as clients continue to adapt to current market conditions,” stated Mr. Gipple. “We continue to be optimistic about solid loan growth for the remainder of the year and are guiding to gross loan growth in a range of 8% to 10% in the second half of the year,” added Mr. Gipple.

    Maintaining Core Deposit Strength

    Following the robust deposit growth of $276.2 million, or 16% annualized, in the first quarter of 2025, the majority of those balances were retained throughout the second quarter. Total deposits declined slightly by $19.0 million, or 1% annualized from the first quarter, while average deposit balances increased $72.0 million. Year-to-date, core deposits have increased by $311 million, or 9% annualized.

    Asset Quality Remains Excellent

    The nonperforming assets (“NPAs”) to total assets ratio was 0.46% as of June 30, 2025, down seven basis points from the prior quarter. NPAs totaled $42.7 million at the end of the second quarter of 2025, a $5.5 million, or 11% decrease from the prior quarter.

    Total criticized loans increased by $9.3 million on a linked-quarter basis. The ratio of criticized loans to total loans and leases as of June 30, 2025, increased to 2.16% as compared to 2.06% as of March 31, 2025. Despite the 10 basis point increase, the criticized loan ratio remains well below the Company’s long-term historical average.

    The Company recorded a total provision for credit losses of $4.0 million during the quarter, which was down slightly from $4.2 million in the prior quarter. Net charge-offs were $6.3 million during the second quarter of 2025, an increase of $2.1 million from the prior quarter primarily due to the charge-off of loans that had previously been fully reserved. The allowance for credit losses to total loans held for investment was 1.28% for the second quarter.

    Strong Tangible Book Value and Regulatory Capital Growth

    The Company’s tangible book value per share1 increased by $1.64, or 13% annualized, during the second quarter of 2025 due to the combination of strong earnings and a modest dividend.

    As of June 30, 2025, the Company’s tangible common equity to tangible assets ratio (“TCE”)1 increased 22 basis points to 9.92%. The improvement in TCE1 was driven by strong earnings during the quarter. The total risk-based capital ratio increased to 14.26% and the common equity tier 1 ratio increased to 10.43% due to solid earnings growth during the quarter. By comparison, these ratios were 9.70%, 14.18%, and 10.27%, respectively, as of March 31, 2025. The Company remains focused on growing its regulatory capital.

    Conference Call Details
    The Company will host an earnings call/webcast tomorrow, July 24, 2025, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through July 31, 2025. The replay access information is 877-344-7529 (international 412-317-0088); access code 8414968. A webcast of the teleconference can be accessed on the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

    About Us
    QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, and Guaranty Bank, based in Springfield, Missouri, was acquired by the Company in 2018. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. The Company has 36 locations in Iowa, Missouri, and Illinois. As of June 30, 2025, the Company had $9.2 billion in assets, $6.9 billion in loans and $7.3 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

    Endnotes

    1Adjusted non-GAAP measurements of financial performance exclude non-core and/or nonrecurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these adjusted measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.

    Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “bode”, “predict,” “suggest,” “project”, “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.
            
    A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, but are not limited to: (i) the strength of the local, state, national and international economies and financial markets, including effects of inflationary pressures, the threat or implementation of tariffs, trade wars and changes to immigration policy; (ii) changes in, and the interpretation and prioritization of, local, state and federal laws, regulations and governmental policies (including those concerning the Company’s general business); (iii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or threats thereof (including the Russian invasion of Ukraine and ongoing conflicts in the Middle East), or other adverse events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iv) new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB, the Securities and Exchange Commission (the “SEC”) or the PCAOB; (v) the imposition of tariffs or other governmental policies impacting the value of products produced by the Company’s commercial borrowers; (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions, fintech companies, and digital asset service providers and the inability to attract new customers; (vii) rapid technological changes implemented by us and our third-party vendors, including the development and implementation of tools incorporating artificial intelligence; (viii) unexpected results of acquisitions, including failure to realize the anticipated benefits of the acquisitions and the possibility that transaction and integration costs may be greater than anticipated; (ix) the loss of key executives and employees, talent shortages and employee turnover; (x) changes in consumer spending; (xi) unexpected outcomes and costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company; (xii) the economic impact on the Company and its customers of climate change, natural disasters and exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates; (xiv) credit risk and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio and large loans to certain borrowers (including CRE loans); (xv) the overall health of the local and national real estate market; (xvi) the ability to maintain an adequate level of allowance for credit losses on loans; (xvii) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and who may withdraw deposits to diversify their exposure; (xviii) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (xix) the level of non-performing assets on our balance sheet; (xx) interruptions involving our information technology and communications systems or third-party servicers; (xxi) the occurrence of fraudulent activity, breaches or failures of our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxii) changes in the interest rates and repayment rates of the Company’s assets; (xxiii) the effectiveness of the Company’s risk management framework, and (xxiv) the ability of the Company to manage the risks associated with the foregoing. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the SEC.

    Contact:
    Nick W. Anderson                        
    Chief Financial Officer                        
    (309) 743-7707 
    nanderson@qcrh.com 

    QCR Holdings, Inc.    
    Consolidated Financial Highlights    
    (Unaudited)    
                     
        As of    
        June 30, March 31, December 31, September 30, June 30,    
          2025     2025     2024     2024     2024      
                     
        (dollars in thousands)    
                     
      CONDENSED BALANCE SHEET              
                     
      Cash and due from banks $         104,769   $           98,994   $           91,732   $         103,840   $           92,173      
      Federal funds sold and interest-bearing deposits             145,704               225,716               170,592               159,159               102,262      
      Securities, net of allowance for credit losses          1,263,452            1,220,717            1,200,435            1,146,046            1,033,199      
      Loans receivable held for sale (1)                1,162                  2,025                  2,143               167,047               246,124      
      Loans/leases receivable held for investment          6,923,762            6,821,142            6,782,261            6,661,755            6,608,262      
      Allowance for credit losses              (88,732 )              (90,354 )              (89,841 )              (86,321 )              (87,706 )    
      Intangibles                9,738                 10,400                 11,061                 11,751                 12,441      
      Goodwill             138,595               138,595               138,595               138,596               139,027      
      Derivatives             184,982               180,997               186,781               261,913               194,354      
      Other assets             558,899               544,547               532,271               524,779               531,855      
      Total assets $      9,242,331   $      9,152,779   $      9,026,030   $      9,088,565   $      8,871,991      
                     
      Total deposits $      7,318,353   $      7,337,390   $      7,061,187   $      6,984,633   $      6,764,667      
      Total borrowings          509,359            429,921            569,532            660,344            768,671      
      Derivatives          209,505            206,925            214,823            285,769            221,798      
      Other liabilities             154,560               155,796               183,101               181,199               180,536      
      Total stockholders’ equity          1,050,554            1,022,747               997,387               976,620               936,319      
      Total liabilities and stockholders’ equity $      9,242,331   $      9,152,779   $      9,026,030   $      9,088,565   $      8,871,991      
                     
      ANALYSIS OF LOAN PORTFOLIO              
      Loan/lease mix: (2)              
      Commercial and industrial – revolving $         380,029   $         388,479   $         387,991   $         387,409   $         362,115      
      Commercial and industrial – other          1,180,859            1,231,198            1,295,961            1,321,053            1,370,561      
      Commercial and industrial – other – LIHTC             194,830               212,921               218,971                 89,028                 92,637      
      Total commercial and industrial          1,755,718            1,832,598            1,902,923            1,797,490            1,825,313      
      Commercial real estate, owner occupied             593,675               599,488               605,993               622,072               633,596      
      Commercial real estate, non-owner occupied          1,036,049            1,040,281            1,077,852            1,103,694            1,082,457      
      Construction and land development             454,022               403,001               395,557               342,335               331,454      
      Construction and land development – LIHTC          1,075,000            1,016,207               917,986               913,841               750,894      
      Multi-family             301,432               289,782               303,662               324,090               329,239      
      Multi-family – LIHTC             950,331               888,517               828,448               973,682            1,148,244      
      Direct financing leases               12,880                 14,773                 17,076                 19,241                 25,808      
      1-4 family real estate             592,253               592,127               588,179               587,512               583,542      
      Consumer             153,564               146,393               146,728               144,845               143,839      
      Total loans/leases $      6,924,924   $      6,823,167   $      6,784,404   $      6,828,802   $      6,854,386      
      Less allowance for credit losses               88,732                 90,354                 89,841                 86,321                 87,706      
      Net loans/leases $      6,836,192   $      6,732,813   $      6,694,563   $      6,742,481   $      6,766,680      
                     
                     
      ANALYSIS OF SECURITIES PORTFOLIO              
      Securities mix:              
      U.S. government sponsored agency securities $           14,267   $           17,487   $           20,591   $           18,621   $           20,101      
      Municipal securities          1,033,642            1,003,985               971,567               965,810               885,046      
      Residential mortgage-backed and related securities               58,864                 43,194                 50,042                 53,488                 54,708      
      Asset backed securities                6,684                  7,764                  9,224                 10,455                 12,721      
      Other securities               67,358                 66,105                 65,745                 39,190                 38,464      
      Trading securities (3)               82,900                 82,445                 83,529                 58,685                 22,362      
      Total securities $      1,263,715   $      1,220,980   $      1,200,698   $      1,146,249   $      1,033,402      
      Less allowance for credit losses                   263                     263                     263                     203                     203      
      Net securities $      1,263,452   $      1,220,717   $      1,200,435   $      1,146,046   $      1,033,199      
                     
      ANALYSIS OF DEPOSITS              
      Deposit mix:              
      Noninterest-bearing demand deposits $         952,032   $         963,851   $         921,160   $         969,348   $         956,445      
      Interest-bearing demand deposits          5,087,783            5,119,601            4,828,216            4,715,087            4,644,918      
      Time deposits             974,341               951,606               953,496               942,847               859,593      
      Brokered deposits             304,197               302,332               358,315               357,351               303,711      
      Total deposits $      7,318,353   $      7,337,390   $      7,061,187   $      6,984,633   $      6,764,667      
                     
      ANALYSIS OF BORROWINGS              
      Borrowings mix:              
      Term FHLB advances $         145,383   $         145,383   $         145,383   $         145,383   $         135,000      
      Overnight FHLB advances                80,000                         –               140,000               230,000               350,000      
      Other short-term borrowings                1,350                  2,050                  1,800                  2,750                  1,600      
      Subordinated notes             233,701               233,595               233,489               233,383               233,276      
      Junior subordinated debentures               48,925                 48,893                 48,860                 48,828                 48,795      
      Total borrowings $         509,359   $         429,921   $         569,532   $         660,344   $         768,671      
                     
    (1) Loans with a fair value of $0 million, $0 million, $0 million, $165.9 million and $243.2 million have been identified for securitization and are included in LHFS at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.
    		    
    (2) Loan categories with significant LIHTC loan balances have been broken out separately.  Total LIHTC balances within the loan/lease portfolio were $2.3 billion at June 30, 2025.    
    (3) Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company.    
       
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                   
          For the Quarter Ended
          June 30, March 31, December 31, September 30, June 30,
           2025   2025     2024     2024    2024
                   
          (dollars in thousands, except per share data)
                   
    INCOME STATEMENT            
    Interest income   $             120,247 $             116,673   $             121,642   $             125,420   $             119,746
    Interest expense                    58,165                  56,687                    60,438                    65,698                    63,583
    Net interest income                     62,082                  59,986                    61,204                    59,722                    56,163
    Provision for credit losses                      4,043                    4,234                      5,149                      3,484                      5,496
    Net interest income after provision for credit losses   $              58,039 $              55,752   $              56,055   $              56,238   $              50,667
                   
                   
    Trust fees (1)   $                3,395 $                3,686   $                3,456   $                3,270   $                3,103
    Investment advisory and management fees (1)                      1,254                    1,254                      1,320                      1,229                      1,214
    Deposit service fees                      2,187                    2,183                      2,228                      2,294                      1,986
    Gains on sales of residential real estate loans, net                         556                       297                         734                         385                         540
    Gains on sales of government guaranteed portions of loans, net                          40                        61                          49                           –                             12
    Capital markets revenue                      9,869                    6,516                    20,552                    16,290                    17,758
    Earnings on bank-owned life insurance                         998                       524                         797                         814                      2,964
    Debit card fees                      1,648                    1,488                      1,555                      1,575                      1,571
    Correspondent banking fees                         699                       614                         560                         507                         510
    Loan related fee income                      1,096                       898                         950                         949                         962
    Fair value gain (loss) on derivatives and trading securities                         230                   (1,007 )                   (1,781 )                      (886 )                        51
    Other                          143                       378                         205                         730                         218
    Total noninterest income   $              22,115 $              16,892   $              30,625   $              27,157   $              30,889
                   
                   
    Salaries and employee benefits   $              28,474 $              27,364   $              33,610   $              31,637   $              31,079
    Occupancy and equipment expense                      6,837                    6,455                      6,354                      6,168                      6,377
    Professional and data processing fees                      6,089                    5,144                      5,480                      4,457                      4,823
    Restructuring expense                           –                            –                              –                         1,954                           –   
    FDIC insurance, other insurance and regulatory fees                      1,960                    1,970                      1,934                      1,711                      1,854
    Loan/lease expense                         407                       381                         513                         587                         151
    Net cost of (income from) and gains/losses on operations of other real estate                          50                         (9 )                        23                         (42 )                        28
    Advertising and marketing                      1,746                    1,613                      1,886                      2,124                      1,565
    Communication and data connectivity                         274                       290                         345                         333                         318
    Supplies                           252                       207                         252                         278                         259
    Bank service charges                         720                       596                         635                         603                         622
    Correspondent banking expense                         314                       329                         328                         325                         363
    Intangibles amortization                         661                       661                         691                         690                         690
    Goodwill impairment                           –                            –                              –                            431                           –   
    Payment card processing                         547                       594                         516                         785                         706
    Trust expense                         413                       357                         381                         395                         379
    Other                          839                       587                         551                      1,129                         674
    Total noninterest expense   $              49,583 $              46,539   $              53,499   $              53,565   $              49,888
                   
    Net income before income taxes   $              30,571 $              26,105   $              33,181   $              29,830   $              31,668
    Federal and state income tax expense                      1,552                       308                      2,956                      2,045                      2,554
    Net income     $              29,019 $              25,797   $              30,225   $              27,785   $              29,114
                   
    Basic EPS   $                  1.71 $                  1.53   $                  1.80   $                  1.65   $                  1.73
    Diluted EPS   $                  1.71 $                  1.52   $                  1.77   $                  1.64   $                  1.72
                   
                   
    Weighted average common shares outstanding              16,928,542            16,900,785              16,871,652              16,846,200              16,814,814
    Weighted average common and common equivalent shares outstanding              17,006,282            17,013,992              17,024,481              16,982,400              16,921,854
                   
    (1) Trust fees and investment advisory and management fees when combined are referred to as wealth management revenue.          
       
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
               
          For the Six Months Ended
          June 30,   June 30,
            2025       2024  
               
          (dollars in thousands, except per share data)
               
    INCOME STATEMENT        
    Interest income   $             236,920     $             234,795  
    Interest expense                  114,852                    123,933  
    Net interest income                   122,068                    110,862  
    Provision for credit losses                      8,277                        8,465  
    Net interest income after provision for credit losses   $             113,791     $             102,397  
               
               
    Trust fees     $                7,081     $                6,302  
    Investment advisory and management fees                      2,508                        2,315  
    Deposit service fees                      4,370                        4,008  
    Gains on sales of residential real estate loans, net                         853                           922  
    Gains on sales of government guaranteed portions of loans, net                         101                            36  
    Capital markets revenue                    16,385                      34,215  
    Earnings on bank-owned life insurance                      1,522                        3,832  
    Debit card fees                      3,136                        3,037  
    Correspondent banking fees                      1,313                        1,022  
    Loan related fee income                      1,994                        1,798  
    Fair value loss on derivatives and trading securities                        (777 )                        (112 )
    Other                          521                           372  
    Total noninterest income   $              39,007     $              57,747  
               
               
    Salaries and employee benefits   $              55,838     $              62,939  
    Occupancy and equipment expense                    13,292                      12,891  
    Professional and data processing fees                    11,233                        9,436  
    FDIC insurance, other insurance and regulatory fees                      3,930                        3,799  
    Loan/lease expense                         788                           529  
    Net cost of (income from) and gains/losses on operations of other real estate                        41                             (2 )
    Advertising and marketing                      3,359                        3,048  
    Communication and data connectivity                         564                           719  
    Supplies                          459                           534  
    Bank service charges                      1,316                        1,190  
    Correspondent banking expense                         643                           668  
    Intangibles amortization                      1,322                        1,380  
    Payment card processing                      1,141                        1,352  
    Trust expense                         770                           804  
    Other                       1,426                        1,291  
    Total noninterest expense   $              96,122     $             100,578  
               
    Net income before income taxes   $              56,676     $              59,566  
    Federal and state income tax expense                      1,860                        3,726  
    Net income    $              54,816     $              55,840  
               
    Basic EPS   $                  3.24     $                  3.32  
    Diluted EPS   $                  3.22     $                  3.30  
               
               
    Weighted average common shares outstanding              16,914,663                16,799,081  
    Weighted average common and common equivalent shares outstanding              17,010,136                16,916,264  
                     
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                       
        As of and for the Quarter Ended   For the Six Months Ended
        June 30,  March 31, December 31, September 30, June 30,   June 30, June 30, 
          2025     2025     2024     2024     2024       2025     2024  
                       
        (dollars in thousands, except per share data)
                       
      COMMON SHARE DATA                
      Common shares outstanding         16,934,698          16,920,363          16,882,045          16,861,108          16,824,985        
      Book value per common share (1) $             62.04   $             60.44   $             59.08   $             57.92   $             55.65        
      Tangible book value per common share (Non-GAAP) (2) $             53.28   $             51.64   $             50.21   $             49.00   $             46.65        
      Closing stock price $             67.90   $             71.32   $             80.64   $             74.03   $             60.00        
      Market capitalization $      1,149,866   $      1,206,760   $      1,361,368   $      1,248,228   $      1,009,499        
      Market price / book value   109.45 %   117.99 %   136.49 %   127.81 %   107.82 %      
      Market price / tangible book value   127.45 %   138.11 %   160.59 %   151.07 %   128.62 %      
      Earnings per common share (basic) LTM (3) $              6.69   $              6.71   $              6.77   $              6.93   $              6.78        
      Price earnings ratio LTM (3)  10.15 x   10.63 x   11.91 x   10.68 x   8.85 x       
      TCE / TA (Non-GAAP) (4)   9.92 %   9.70 %   9.55 %   9.24 %   9.00 %      
                       
                       
      CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY        
      Beginning balance $      1,022,747   $         997,387   $         976,620   $         936,319   $         907,342        
      Net income               29,019                 25,797                 30,225                 27,785                 29,114        
      Other comprehensive income (loss), net of tax               (1,671 )                   404                 (9,628 )               12,057                    (368 )      
      Common stock cash dividends declared               (1,016 )               (1,015 )               (1,013 )               (1,012 )               (1,008 )      
      Other (5)                1,475                     174                  1,183                  1,471                  1,239        
      Ending balance $      1,050,554   $      1,022,747   $         997,387   $         976,620   $         936,319        
                       
                       
      REGULATORY CAPITAL RATIOS (6):                
      Total risk-based capital ratio   14.26 %   14.18 %   14.10 %   13.87 %   14.21 %      
      Tier 1 risk-based capital ratio   10.96 %   10.81 %   10.57 %   10.33 %   10.49 %      
      Tier 1 leverage capital ratio   11.22 %   11.06 %   10.73 %   10.50 %   10.40 %      
      Common equity tier 1 ratio   10.43 %   10.27 %   10.03 %   9.79 %   9.92 %      
                       
                       
      KEY PERFORMANCE RATIOS AND OTHER METRICS                 
      Return on average assets (annualized)   1.27 %   1.14 %   1.34 %   1.24 %   1.33 %     1.21 %   1.30 %
      Return on average total equity (annualized)   11.15 %   10.14 %   12.15 %   11.55 %   12.63 %     10.65 %   12.32 %
      Net interest margin   2.97 %   2.95 %   2.95 %   2.90 %   2.82 %     2.95 %   2.82 %
      Net interest margin (TEY) (Non-GAAP)(7)   3.46 %   3.42 %   3.43 %   3.37 %   3.27 %     3.45 %   3.26 %
      Efficiency ratio (Non-GAAP) (8)   58.89 %   60.54 %   58.26 %   61.65 %   57.31 %     59.68 %   59.65 %
      Gross loans/leases held for investment / total assets    74.91 %   74.53 %   75.14 %   73.30 %   74.48 %     74.91 %   74.48 %
      Gross loans/leases held for investment / total deposits    94.61 %   92.96 %   96.05 %   95.38 %   97.69 %     94.61 %   97.69 %
      Effective tax rate   5.08 %   1.18 %   8.91 %   6.86 %   8.06 %     3.28 %   6.26 %
      Full-time equivalent employees (9)                1,001                     972                     980                     976                     988                     1,001                      988  
                       
                       
      AVERAGE BALANCES                 
      Assets $      9,155,473   $      9,015,439   $      9,050,280   $      8,968,653   $      8,776,002     $       9,085,843   $       8,663,429  
      Loans/leases          6,881,731            6,790,312            6,839,153            6,840,527            6,779,075               6,836,274             6,688,844  
      Deposits          7,218,540            7,146,286            7,109,567            6,858,196            6,687,188               7,182,612             6,641,324  
      Total stockholders’ equity          1,041,428            1,017,487               995,012               962,302               921,986               1,029,524                912,679  
                       
    (1 ) Includes accumulated other comprehensive income (loss). 
    (2 ) Includes accumulated other comprehensive income (loss) and excludes intangible assets.  See GAAP to Non-GAAP reconciliations.   
    (3 ) LTM : Last twelve months.        
    (4 ) TCE / TCA : tangible common equity / total tangible assets.  See GAAP to non-GAAP reconciliations.     
    (5 ) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.     
    (6 ) (6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.    
    (7 ) TEY : Tax equivalent yield.  See GAAP to Non-GAAP reconciliations.       
    (8 ) See GAAP to Non-GAAP reconciliations.        
    (9 ) The increase in full-time equivalent employees in the second quarter of 2025 includes 21 summer interns.     
         
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                               
      ANALYSIS OF NET INTEREST INCOME AND MARGIN                  
                               
          For the Quarter Ended
          June 30, 2025   March 31, 2025   June 30, 2024
           Average
    Balance     		  Interest
    Earned or
    Paid     		  Average
    Yield or Cost     		    Average
    Balance     		  Interest
    Earned or
    Paid     		  Average
    Yield or Cost     		    Average
    Balance     		  Interest
    Earned or
    Paid     		  Average
    Yield or Cost 
                               
          (dollars in thousands)
                               
      Fed funds sold   $        14,285 $             159 4.40 %   $          9,009 $              99 4.40 %   $        13,065 $           183 5.54 %
      Interest-bearing deposits at financial institutions          151,898              1,634 4.31 %            166,897              1,804 4.38 %              80,998            1,139 5.66 %
      Investment securities – taxable          401,657              4,805 4.79 %            400,779              4,588 4.59 %            377,747            4,286 4.53 %
      Investment securities – nontaxable (1)          893,753             12,872 5.76 %            843,476            11,722 5.57 %            704,761            9,462 5.37 %
      Restricted investment securities            34,037                 622 7.23 %              30,562                534 6.99 %              43,398               869 7.92 %
      Loans (1)         6,881,731           110,245 6.43 %         6,790,312          107,439 6.42 %         6,779,075         112,719 6.69 %
      Total earning assets (1) $    8,377,361 $       130,337 6.24 %   $    8,241,035 $      126,186 6.20 %   $    7,999,044 $     128,658 6.46 %
                               
      Interest-bearing deposits $    5,080,367 $         38,604 3.05 %   $    5,005,853 $        37,698 3.05 %   $    4,649,625 $       40,924 3.54 %
      Time deposits         1,193,035             12,409 4.17 %         1,204,593            12,690 4.27 %         1,091,870           12,128 4.47 %
      Short-term borrowings              1,420                   15 4.23 %                1,839                  18 3.97 %                1,622                 21 5.18 %
      Federal Home Loan Bank advances           250,603              2,853 4.50 %            177,883              1,996 4.49 %            464,231            6,238 5.32 %
      Subordinated debentures          233,631              3,599 6.16 %            233,525              3,601 6.17 %            233,207            3,582 6.14 %
      Junior subordinated debentures            48,904                 685 5.54 %              48,871                684 5.60 %              48,774               688 5.58 %
      Total interest-bearing liabilities $    6,807,960 $         58,165 3.42 %   $    6,672,564 $        56,687 3.44 %   $    6,489,329 $       63,581 3.93 %
                               
      Net interest income (1)   $         72,172       $        69,499       $       65,077  
      Net interest margin (2)     2.97 %       2.95 %       2.82 %
      Net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.46 %       3.42 %       3.27 %
      Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.45 %       3.41 %       3.26 %
      Cost of funds (4)       3.01 %       3.02 %       3.43 %
                               
                               
          For the Six Months Ended        
          June 30, 2025   June 30, 2024    
           Average
    Balance     		  Interest
    Earned or
    Paid     		  Average
    Yield or Cost     		    Average
    Balance     		  Interest
    Earned or
    Paid     		  Average
    Yield or Cost     		        
                               
          (dollars in thousands)        
                               
      Fed funds sold  $        11,662 $             258 4.40 %   $        16,510 $             452 5.41 %        
      Interest-bearing deposits at financial institutions          159,356              3,438 4.35 %              86,277              2,339 5.45 %        
      Investment securities – taxable          401,220              9,393 4.69 %            375,644              8,546 4.54 %        
      Investment securities – nontaxable (1)          868,754             24,594 5.67 %            695,365            18,813 5.41 %        
      Restricted investment securities            32,309              1,156 7.12 %              40,742              1,543 7.49 %        
      Loans (1)         6,836,274           217,684 6.42 %         6,688,844          220,392 6.63 %        
      Total earning assets (1) $    8,309,575 $       256,523 6.22 %   $    7,903,382 $      252,085 6.41 %        
                               
      Interest-bearing deposits $    5,041,914 $         76,302 3.05 %   $    4,589,479 $        80,027 3.51 %        
      Time deposits        1,198,782             25,098 4.22 %         1,099,746            24,473 4.48 %        
      Short-term borrowings              1,629                   33 4.05 %                1,688                  44 5.19 %        
      Federal Home Loan Bank advances          214,444              4,849 4.50 %            409,725            10,977 5.30 %        
      Subordinated debentures          233,579              7,201 6.17 %            233,154              7,062 6.06 %        
      Junior subordinated debentures            48,888              1,369 5.57 %              48,758              1,381 5.60 %        
      Total interest-bearing liabilities $    6,739,236 $       114,852 3.43 %   $    6,382,550 $      123,964 3.90 %        
                               
      Net interest income (1)   $       141,671       $      128,121          
      Net interest margin (2)     2.95 %       2.82 %        
      Net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.45 %       3.26 %        
      Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.44 %       3.24 %        
      Cost of funds (4)       3.01 %       3.39 %        
                               
                               
    (1 ) Includes nontaxable securities and loans.  Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.  
    (2 ) See “Select Financial Data – Subsidiaries” for a breakdown of amortization/accretion included in net interest margin for each period presented.     
    (3 ) TEY : Tax equivalent yield.  See GAAP to Non-GAAP reconciliations.           
    (4 ) Cost of funds includes the effect of noninterest-bearing deposits.           
         
    QCR Holdings, Inc.  
    Consolidated Financial Highlights  
    (Unaudited)  
                   
        As of  
        June 30, March 31,  December 31, September 30, June 30,  
          2025     2025     2024     2024     2024    
                   
        (dollars in thousands, except per share data)  
                   
      ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES            
      Beginning balance $         90,354   $            89,841   $         86,321   $         87,706   $         84,470    
      Change in ACL for transfer of loans to LHFS                    –                           –                        93                (1,812 )                  498    
      Credit loss expense                4,667                   4,743                 6,832                 3,828                 4,343    
      Loans/leases charged off              (6,490 )                (4,944 )              (4,787 )              (3,871 )              (1,751 )  
      Recoveries on loans/leases previously charged off                  201                      714                 1,382                    470                    146    
      Ending balance $         88,732   $            90,354   $         89,841   $         86,321   $         87,706    
                   
                   
      NONPERFORMING ASSETS             
      Nonaccrual loans/leases  $         42,482   $            47,259   $         40,080   $         33,480   $         33,546    
      Accruing loans/leases past due 90 days or more                     7                      356                 4,270                 1,298                     87    
      Total nonperforming loans/leases             42,489                  47,615               44,350               34,778               33,633    
      Other real estate owned                   62                      402                    661                    369                    369    
      Other repossessed assets                  113                      122                    543                    542                    512    
      Total nonperforming assets $         42,664   $            48,139   $         45,554   $         35,689   $         34,514    
                   
                   
      ASSET QUALITY RATIOS            
      Nonperforming assets / total assets    0.46 %   0.53 %   0.50 %   0.39 %   0.39 %  
      ACL for loans and leases / total loans/leases held for investment   1.28 %   1.32 %   1.32 %   1.30 %   1.33 %  
      ACL for loans and leases / nonperforming loans/leases    208.84 %   189.76 %   202.57 %   248.21 %   260.77 %  
      Net charge-offs as a % of average loans/leases   0.09 %   0.06 %   0.05 %   0.05 %   0.02 %  
                   
                   
                   
      INTERNALLY ASSIGNED RISK RATING (1)            
      Special mention $         68,621   $            55,327   $         73,636   $         80,121   $         85,096    
      Substandard (2)             81,040                  85,033               84,930               70,022               80,345    
      Doubtful (2)                    –                           –                         –                         –                         –       
      Total Criticized loans (3) $        149,661   $          140,360   $        158,566   $        150,143   $        165,441    
                   
      Classified loans as a % of total loans/leases (2)   1.17 %   1.25 %   1.25 %   1.03 %   1.17 %  
      Total Criticized loans as a % of total loans/leases (3)   2.16 %   2.06 %   2.34 %   2.20 %   2.41 %  
                   
    (1 ) Amounts exclude the government guaranteed portion, if any.  The Company assigns internal risk ratings of Pass for the government guaranteed portion.
    (2 ) Classified loans are defined as loans with internally assigned risk ratings of 10 or 11, regardless of performance, and include loans identified as Substandard or Doubtful.
    (3 ) Total Criticized loans are defined as loans with internally assigned risk ratings of 9, 10, or 11 , regardless of performance, and include loans identified as Special Mention, Substandard, or Doubtful.
         
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                           
          For the Quarter Ended For the Year Ended
          June 30,    March 31,   June 30,   June 30,   June 30,
      SELECT FINANCIAL DATA – SUBSIDIARIES     2025       2025       2024       2025       2024  
          (dollars in thousands)
                           
      TOTAL ASSETS                    
      Quad City Bank and Trust (1)   $          2,662,450     $          2,777,634     $          2,559,049          
      m2 Equipment Finance, LLC                  242,722                    276,096                    359,012          
      Cedar Rapids Bank and Trust                2,664,293                  2,617,143                  2,428,267          
      Community State Bank                1,605,966                  1,583,646                  1,531,109          
      Guaranty Bank                 2,365,944                  2,331,944                  2,369,754          
                           
      TOTAL DEPOSITS                    
      Quad City Bank and Trust (1)   $          2,309,942     $          2,397,047     $          2,100,520          
      Cedar Rapids Bank and Trust                1,884,370                  1,883,952                  1,721,564          
      Community State Bank                1,272,296                  1,238,307                  1,188,551          
      Guaranty Bank                 1,866,749                  1,840,774                  1,791,448          
                           
      TOTAL LOANS & LEASES                    
      Quad City Bank and Trust (1)   $          2,032,168     $          2,041,181     $          2,107,605          
      m2 Equipment Finance, LLC                  250,019                    284,983                    363,897          
      Cedar Rapids Bank and Trust                1,852,316                  1,790,065                  1,736,438          
      Community State Bank                1,206,735                  1,197,005                  1,162,686          
      Guaranty Bank                 1,833,706                  1,794,915                  1,847,658          
                           
      TOTAL LOANS & LEASES / TOTAL DEPOSITS                    
      Quad City Bank and Trust (1)     88 %     85 %     100 %        
      Cedar Rapids Bank and Trust     98 %     95 %     101 %        
      Community State Bank     95 %     97 %     98 %        
      Guaranty Bank      98 %     98 %     103 %        
                           
                           
      TOTAL LOANS & LEASES / TOTAL ASSETS                    
      Quad City Bank and Trust (1)     76 %     73 %     82 %        
      Cedar Rapids Bank and Trust     70 %     68 %     72 %        
      Community State Bank     75 %     76 %     76 %        
      Guaranty Bank      78 %     77 %     78 %        
                           
      ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT                    
      Quad City Bank and Trust (1)     1.32 %     1.44 %     1.43 %        
      m2 Equipment Finance, LLC     4.26 %     4.37 %     3.86 %        
      Cedar Rapids Bank and Trust      1.35 %     1.38 %     1.38 %        
      Community State Bank     1.09 %     1.08 %     1.08 %        
      Guaranty Bank      1.29 %     1.30 %     1.13 %        
                           
      RETURN ON AVERAGE ASSETS (ANNUALIZED)                    
      Quad City Bank and Trust (1)     1.24 %     1.31 %     0.88 %     1.28 %     0.84 %
      Cedar Rapids Bank and Trust     2.36 %     2.14 %     2.94 %     2.25 %     3.01 %
      Community State Bank     1.31 %     1.07 %     1.26 %     1.19 %     1.25 %
      Guaranty Bank      0.85 %     0.72 %     1.42 %     0.79 %     1.15 %
                           
      NET INTEREST MARGIN PERCENTAGE (2)                    
      Quad City Bank and Trust (1)     3.45 %     3.45 %     3.39 %     3.45 %     3.35 %
      Cedar Rapids Bank and Trust     3.99 %     4.00 %     3.75 %     4.00 %     3.76 %
      Community State Bank      3.87 %     3.78 %     3.72 %     3.83 %     3.74 %
      Guaranty Bank (3)     3.11 %     3.05 %     2.99 %     3.08 %     2.99 %
                           
      ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET                    
      INTEREST MARGIN, NET                    
      Community State Bank   $                     (1 )   $                     (1 )   $                     (1 )   $                     (2 )   $                     (2 )
      Guaranty Bank                         118                           218                           301                           336       697  
      QCR Holdings, Inc. (4)                         (33 )                         (33 )                         (32 )                         (66 )     (64 )
                           
    (1 ) Quad City Bank and Trust amounts include m2 Equipment Finance, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Equipment Finance, LLC  is also presented separately for certain (applicable) measurements.
    (2 ) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
    (3 ) Guaranty Bank’s net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 2.86% for the quarter ended June 30, 2025, 2.91% for the quarter ended March 31, 2025 and 2.86% for the quarter ended June 30, 2024.  
    (4 ) Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.
    QCR Holdings, Inc.    
    Consolidated Financial Highlights    
    (Unaudited)    
                               
          As of  
          June 30,   March 31,    December 31,   September 30,   June 30,     
      GAAP TO NON-GAAP RECONCILIATIONS     2025       2025       2024       2024       2024      
          (dollars in thousands, except per share data)  
      TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)                        
                               
      Stockholders’ equity (GAAP)   $        1,050,554     $        1,022,747     $           997,387     $           976,620     $           936,319      
      Less: Intangible assets                148,333                  148,995                  149,657                  150,347                  151,468      
      Tangible common equity (non-GAAP)   $           902,221     $           873,752     $           847,730     $           826,273     $           784,851      
                               
      Total assets (GAAP)   $        9,242,331     $        9,152,779     $        9,026,030     $        9,088,565     $        8,871,991      
      Less: Intangible assets                148,333                  148,995                  149,657                  150,347                  151,468      
      Tangible assets (non-GAAP)   $        9,093,998     $        9,003,784     $        8,876,373     $        8,938,218     $        8,720,523      
                               
      Tangible common equity to tangible assets ratio (non-GAAP)     9.92 %     9.70 %     9.55 %     9.24 %     9.00 %    
                               
                               
                               
    (1 ) This ratio is a non-GAAP financial measure. The Company’s management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to stockholders’ equity and total assets, which are the most directly comparable GAAP financial measures.
         
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                                   
      GAAP TO NON-GAAP RECONCILIATIONS   For the Quarter Ended   For the Six Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,   June 30,    June 30,
      ADJUSTED NET INCOME (1)     2025       2025       2024       2024       2024       2025       2024  
          (dollars in thousands, except per share data)
                                   
      Net income (GAAP)   $            29,019     $            25,797     $            30,225     $            27,785     $            29,114     $            54,816     $            55,840  
                                   
      Less non-core items (post-tax) (2):                            
      Income:                            
      Fair value loss on derivatives, net                      (397 )                      (156 )                   (2,594 )                      (542 )                      (145 )                      (553 )                      (288 )
      Total non-core income (non-GAAP)   $                (397 )   $                (156 )   $             (2,594 )   $                (542 )   $                (145 )   $                (553 )   $                (288 )
                                   
      Expense:                            
      Goodwill impairment                           –                             –                             –                         431                             –                             –                             –  
      Restructuring expense                           –                             –                             –                      1,544                             –                             –                             –  
      Total non-core expense (non-GAAP)   $                     –     $                     –     $                     –     $              1,975     $                     –     $                     –     $                     –  
                                   
                                   
      Adjusted net income  (non-GAAP) (1)   $            29,416     $            25,953     $            32,819     $            30,302     $            29,259     $            55,369     $            56,128  
                                   
      ADJUSTED EARNINGS PER COMMON SHARE (1)                            
                                   
      Adjusted net income (non-GAAP) (from above)   $            29,416     $            25,953     $            32,819     $            30,302     $            29,259     $            55,369     $            56,128  
                                   
      Weighted average common shares outstanding            16,928,542              16,900,785              16,871,652              16,846,200              16,814,814              16,914,663              16,799,081  
      Weighted average common and common equivalent shares outstanding            17,006,282              17,013,992              17,024,481              16,982,400              16,921,854              17,010,136              16,916,264  
                                   
      Adjusted earnings per common share (non-GAAP):                            
      Basic   $                1.74     $                1.54     $                1.95     $                1.80     $                1.74     $                3.27     $                3.34  
      Diluted   $                1.73     $                1.53     $                1.93     $                1.78     $                1.73     $                3.26     $                3.32  
                                   
      ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)                            
                                   
      Adjusted net income (non-GAAP) (from above)   $            29,416     $            25,953     $            32,819     $            30,302     $            29,259     $            55,369     $            56,128  
                                   
      Average Assets   $        9,155,473     $        9,015,439     $        9,050,280     $        8,968,653     $        8,776,002     $        9,085,843     $        8,663,429  
                                   
      Adjusted return on average assets (annualized) (non-GAAP)     1.29 %     1.15 %     1.45 %     1.35 %     1.33 %     1.22 %     1.30 %
      Adjusted return on average equity (annualized) (non-GAAP)     11.30 %     10.20 %     13.19 %     12.60 %     12.69 %     10.76 %     12.30 %
                                   
      NET INTEREST MARGIN (TEY) (3)                            
                                   
      Net interest income (GAAP)   $            62,082     $            59,986     $            61,204     $            59,722     $            56,163     $           122,068     $           110,862  
      Plus: Tax equivalent adjustment (4)                  10,090                      9,513                      9,698                      9,544                      8,914                    19,603                    17,259  
      Net interest income – tax equivalent (non-GAAP)   $            72,172     $            69,499     $            70,902     $            69,266     $            65,077     $           141,671     $           128,121  
      Less:  Acquisition accounting net accretion                        84                         184                         471                         463                         268                         268                         631  
      Adjusted net interest income   $            72,088     $            69,315     $            70,431     $            68,803     $            64,809     $           141,403     $           127,490  
                                   
      Average earning assets   $        8,377,361     $        8,241,035     $        8,241,190     $        8,183,196     $        7,999,044     $        8,309,575     $        7,903,382  
                                   
      Net interest margin (GAAP)     2.97 %     2.95 %     2.95 %     2.90 %     2.82 %     2.97 %     2.82 %
      Net interest margin (TEY) (non-GAAP)     3.46 %     3.42 %     3.43 %     3.37 %     3.27 %     3.45 %     3.26 %
      Adjusted net interest margin (TEY) (non-GAAP)     3.45 %     3.41 %     3.40 %     3.34 %     3.26 %     3.44 %     3.24 %
                                   
      EFFICIENCY RATIO (5)                            
                                   
      Noninterest expense (GAAP)   $            49,583     $            46,539     $            53,499     $            53,565     $            49,888     $            96,122     $           100,578  
                                   
      Net interest income (GAAP)   $            62,082     $            59,986     $            61,204     $            59,722     $            56,163     $           122,068     $           110,862  
      Noninterest income (GAAP)                  22,115                    16,892                    30,625                    27,157                    30,889                    39,007                    57,747  
      Total income   $            84,197     $            76,878     $            91,829     $            86,879     $            87,052     $           161,075     $           168,609  
                                   
      Efficiency ratio (noninterest expense/total income) (non-GAAP)     58.89 %     60.54 %     58.26 %     61.65 %     57.31 %     59.68 %     59.65 %
      Adjusted efficiency ratio (core noninterest expense/core total income) (non-GAAP)     58.54 %     60.38 %     56.25 %     58.45 %     57.19 %     59.42 %     59.52 %
                                   
                                   
    (1 ) Adjusted net income, adjusted earnings per common share, adjusted return on average assets and average equity are non-GAAP financial measures. The Company’s management believes that these measurements are important to investors as they exclude non-core or non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. In compliance with applicable rules of the SEC, these non-GAAP measures are reconciled to net income, which is the most directly comparable GAAP financial measure.
    (2 ) Non-core or non-recurring items (post-tax) are calculated using an estimated effective federal tax rate of 21% with the exception of goodwill impairment which is not deductible for tax.    
    (3 ) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.        
    (4 ) Net interest margin (TEY) is a non-GAAP financial measure. The Company’s management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure.  In addition, the Company calculates net interest margin without the impact of acquisition accounting net accretion as this can fluctuate and it’s difficult to provide a more realistic run-rate for future periods.
    (5 ) Efficiency ratio is a non-GAAP measure. The Company’s management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue. In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most directly comparable GAAP financial measures.
           

    The MIL Network –

  • MIL-OSI: QCR Holdings, Inc. Announces Net Income of $29.0 Million for the Second Quarter of 2025

    Source: GlobeNewswire (MIL-OSI)

    Second Quarter 2025 Highlights

    • Net income of $29.0 million, or $1.71 per diluted share
    • Adjusted net income1of $29.4 million, or $1.73 per diluted share
    • NIM TEY1expanded four basis points to 3.46%
    • Adjusted ROAA1of 1.29% annualized
    • Capital markets revenue growth of 51% on a linked-quarter basis
    • Nonperforming assets declined $5.5 million, or 11%
    • Tangible book value per share1grew $1.64, or 13% annualized
    • TCE/TA ratio1improved 22 basis points to 9.92%

    MOLINE, Ill., July 23, 2025 (GLOBE NEWSWIRE) — QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $29.0 million and diluted earnings per share (“EPS”) of $1.71 for the second quarter of 2025, compared to net income of $25.8 million and diluted EPS of $1.52 for the first quarter of 2025.

    Adjusted net income1 and adjusted diluted EPS1 for the second quarter of 2025 were $29.4 million and $1.73, respectively, for the first quarter of 2025 compared to $26.0 million and $1.53, respectively, for the first quarter of 2025 and $29.3 million, and $1.73 respectively for the second quarter of 2024.

      For the Quarter Ended    
      June 30, March 31, June 30,    
    $ in millions (except per share data)  2025  2025  2024    
    Net Income $ 29.0 $ 25.8 $ 29.1    
    Diluted EPS $ 1.71 $ 1.52 $ 1.72    
    Adjusted Net Income1 $ 29.4 $ 26.0 $ 29.3    
    Adjusted Diluted EPS1 $ 1.73 $ 1.53 $ 1.73    

    “We delivered strong second quarter results highlighted by a significant increase in net interest income from the previous quarter, driven by both net interest margin expansion and strong loan growth, as well as improved capital markets revenue, and disciplined noninterest expense management,” said Todd Gipple, President and Chief Executive Officer. “These robust results led to continued capital accretion and a substantial increase in tangible book value per share1.”

    Significant Net Interest Income Growth as Margin Expansion Continues

    Net interest income for the second quarter of 2025 totaled $62.1 million, an increase of $2.1 million, or 14% annualized, from the first quarter of 2025, driven by strong earning asset growth, expanded yield on loans and investments, and lower cost of funds.   Net interest margin (“NIM”) was 2.97% and NIM on a tax-equivalent yield (“TEY”) basis1 was 3.46% for the second quarter, as compared to 2.95% and 3.42% for the prior quarter, respectively.

    “Our NIM TEY1 increased four basis points from the first quarter of 2025, which was at the top of our guidance range,” said Nick Anderson, Chief Financial Officer. “Looking ahead, we anticipate continued margin expansion and are guiding to an increase in third quarter NIM TEY1 in a range from static to an increase of four basis points, assuming no Federal Reserve rate cuts,” added Mr. Anderson.

    Improving Noninterest Income Driven by Capital Markets Revenue

    Noninterest income for the second quarter of 2025 was $22.1 million, up from $16.9 million in the first quarter of 2025. The Company generated $9.9 million of capital markets revenue in the second quarter of 2025 compared to $6.5 million in the prior quarter. Wealth management revenue totaled $4.6 million, representing a slight decline from the first quarter of 2025. However, it increased $332 thousand or 8% compared to the second quarter of 2024 and rose 23% year-to-date on an annualized basis compared to the same period in 2024.

    “During the second quarter of 2025 we saw improved low-income housing tax credit (“LIHTC”) lending activity compared to the first quarter as clients adjusted to the current environment. This increased activity drove 51% growth in our capital markets revenue. The sustained, long-term demand for affordable housing continues to support our LIHTC lending and related capital markets revenue. Our pipeline continues to improve as clients adapt to the evolving market conditions,” said Mr. Gipple.

    “Given the strengthened pipeline, we are reaffirming our guidance for Capital Markets revenue to be in a range of $50 to $60 million for the next four quarters.  In addition, we are also providing guidance over a shorter horizon and expect capital markets revenue for the third quarter to be fully back to a more normalized level and in a range of $13 to $16 million for the quarter,” added Mr. Gipple.

    Disciplined Noninterest Expense Management

    Noninterest expense for the second quarter of 2025 totaled $49.6 million compared to $46.5 million for the first quarter of 2025 and $49.9 million for the second quarter of 2024. The $3.1 million linked-quarter increase was primarily due to higher capital markets revenue and strong loan growth resulting in an improved return on average assets which drove higher variable compensation. Professional and data processing expenses also increased and were related to the Company’s digital transformation.   

    “While expenses increased compared to the first quarter, we held noninterest expense under the low end of our guidance range of $50 to $53 million, highlighting our expense flexibility,” said Mr. Anderson. “Noninterest expense remains well managed, down 9% year to date on an annualized basis compared to the same period in 2024. The Company’s efficiency ratio1 was 58.9% in the second quarter. For the third quarter of 2025, we expect noninterest expense to be in the range of $52 to $55, million which includes certain costs associated with our digital transformation and assumes both capital markets revenue and loan growth are within our guidance range,” added Mr. Anderson.

    Strong Loan Growth

    In the second quarter of 2025, the Company’s total loans and leases held for investment grew by $102.6 million, to $6.9 billion. “Loan growth was 8% annualized when adding back the impact from the planned runoff of m2 Equipment Finance loans and leases. Second quarter loan growth was driven by both our LIHTC and traditional lending businesses. Our pipeline is strong, and we anticipate loan demand to increase as clients continue to adapt to current market conditions,” stated Mr. Gipple. “We continue to be optimistic about solid loan growth for the remainder of the year and are guiding to gross loan growth in a range of 8% to 10% in the second half of the year,” added Mr. Gipple.

    Maintaining Core Deposit Strength

    Following the robust deposit growth of $276.2 million, or 16% annualized, in the first quarter of 2025, the majority of those balances were retained throughout the second quarter. Total deposits declined slightly by $19.0 million, or 1% annualized from the first quarter, while average deposit balances increased $72.0 million. Year-to-date, core deposits have increased by $311 million, or 9% annualized.

    Asset Quality Remains Excellent

    The nonperforming assets (“NPAs”) to total assets ratio was 0.46% as of June 30, 2025, down seven basis points from the prior quarter. NPAs totaled $42.7 million at the end of the second quarter of 2025, a $5.5 million, or 11% decrease from the prior quarter.

    Total criticized loans increased by $9.3 million on a linked-quarter basis. The ratio of criticized loans to total loans and leases as of June 30, 2025, increased to 2.16% as compared to 2.06% as of March 31, 2025. Despite the 10 basis point increase, the criticized loan ratio remains well below the Company’s long-term historical average.

    The Company recorded a total provision for credit losses of $4.0 million during the quarter, which was down slightly from $4.2 million in the prior quarter. Net charge-offs were $6.3 million during the second quarter of 2025, an increase of $2.1 million from the prior quarter primarily due to the charge-off of loans that had previously been fully reserved. The allowance for credit losses to total loans held for investment was 1.28% for the second quarter.

    Strong Tangible Book Value and Regulatory Capital Growth

    The Company’s tangible book value per share1 increased by $1.64, or 13% annualized, during the second quarter of 2025 due to the combination of strong earnings and a modest dividend.

    As of June 30, 2025, the Company’s tangible common equity to tangible assets ratio (“TCE”)1 increased 22 basis points to 9.92%. The improvement in TCE1 was driven by strong earnings during the quarter. The total risk-based capital ratio increased to 14.26% and the common equity tier 1 ratio increased to 10.43% due to solid earnings growth during the quarter. By comparison, these ratios were 9.70%, 14.18%, and 10.27%, respectively, as of March 31, 2025. The Company remains focused on growing its regulatory capital.

    Conference Call Details
    The Company will host an earnings call/webcast tomorrow, July 24, 2025, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through July 31, 2025. The replay access information is 877-344-7529 (international 412-317-0088); access code 8414968. A webcast of the teleconference can be accessed on the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

    About Us
    QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, and Guaranty Bank, based in Springfield, Missouri, was acquired by the Company in 2018. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. The Company has 36 locations in Iowa, Missouri, and Illinois. As of June 30, 2025, the Company had $9.2 billion in assets, $6.9 billion in loans and $7.3 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

    Endnotes

    1Adjusted non-GAAP measurements of financial performance exclude non-core and/or nonrecurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these adjusted measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.

    Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “bode”, “predict,” “suggest,” “project”, “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.
            
    A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, but are not limited to: (i) the strength of the local, state, national and international economies and financial markets, including effects of inflationary pressures, the threat or implementation of tariffs, trade wars and changes to immigration policy; (ii) changes in, and the interpretation and prioritization of, local, state and federal laws, regulations and governmental policies (including those concerning the Company’s general business); (iii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or threats thereof (including the Russian invasion of Ukraine and ongoing conflicts in the Middle East), or other adverse events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iv) new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB, the Securities and Exchange Commission (the “SEC”) or the PCAOB; (v) the imposition of tariffs or other governmental policies impacting the value of products produced by the Company’s commercial borrowers; (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions, fintech companies, and digital asset service providers and the inability to attract new customers; (vii) rapid technological changes implemented by us and our third-party vendors, including the development and implementation of tools incorporating artificial intelligence; (viii) unexpected results of acquisitions, including failure to realize the anticipated benefits of the acquisitions and the possibility that transaction and integration costs may be greater than anticipated; (ix) the loss of key executives and employees, talent shortages and employee turnover; (x) changes in consumer spending; (xi) unexpected outcomes and costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company; (xii) the economic impact on the Company and its customers of climate change, natural disasters and exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates; (xiv) credit risk and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio and large loans to certain borrowers (including CRE loans); (xv) the overall health of the local and national real estate market; (xvi) the ability to maintain an adequate level of allowance for credit losses on loans; (xvii) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and who may withdraw deposits to diversify their exposure; (xviii) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (xix) the level of non-performing assets on our balance sheet; (xx) interruptions involving our information technology and communications systems or third-party servicers; (xxi) the occurrence of fraudulent activity, breaches or failures of our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxii) changes in the interest rates and repayment rates of the Company’s assets; (xxiii) the effectiveness of the Company’s risk management framework, and (xxiv) the ability of the Company to manage the risks associated with the foregoing. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the SEC.

    Contact:
    Nick W. Anderson                        
    Chief Financial Officer                        
    (309) 743-7707 
    nanderson@qcrh.com 

    QCR Holdings, Inc.    
    Consolidated Financial Highlights    
    (Unaudited)    
                     
        As of    
        June 30, March 31, December 31, September 30, June 30,    
          2025     2025     2024     2024     2024      
                     
        (dollars in thousands)    
                     
      CONDENSED BALANCE SHEET              
                     
      Cash and due from banks $         104,769   $           98,994   $           91,732   $         103,840   $           92,173      
      Federal funds sold and interest-bearing deposits             145,704               225,716               170,592               159,159               102,262      
      Securities, net of allowance for credit losses          1,263,452            1,220,717            1,200,435            1,146,046            1,033,199      
      Loans receivable held for sale (1)                1,162                  2,025                  2,143               167,047               246,124      
      Loans/leases receivable held for investment          6,923,762            6,821,142            6,782,261            6,661,755            6,608,262      
      Allowance for credit losses              (88,732 )              (90,354 )              (89,841 )              (86,321 )              (87,706 )    
      Intangibles                9,738                 10,400                 11,061                 11,751                 12,441      
      Goodwill             138,595               138,595               138,595               138,596               139,027      
      Derivatives             184,982               180,997               186,781               261,913               194,354      
      Other assets             558,899               544,547               532,271               524,779               531,855      
      Total assets $      9,242,331   $      9,152,779   $      9,026,030   $      9,088,565   $      8,871,991      
                     
      Total deposits $      7,318,353   $      7,337,390   $      7,061,187   $      6,984,633   $      6,764,667      
      Total borrowings          509,359            429,921            569,532            660,344            768,671      
      Derivatives          209,505            206,925            214,823            285,769            221,798      
      Other liabilities             154,560               155,796               183,101               181,199               180,536      
      Total stockholders’ equity          1,050,554            1,022,747               997,387               976,620               936,319      
      Total liabilities and stockholders’ equity $      9,242,331   $      9,152,779   $      9,026,030   $      9,088,565   $      8,871,991      
                     
      ANALYSIS OF LOAN PORTFOLIO              
      Loan/lease mix: (2)              
      Commercial and industrial – revolving $         380,029   $         388,479   $         387,991   $         387,409   $         362,115      
      Commercial and industrial – other          1,180,859            1,231,198            1,295,961            1,321,053            1,370,561      
      Commercial and industrial – other – LIHTC             194,830               212,921               218,971                 89,028                 92,637      
      Total commercial and industrial          1,755,718            1,832,598            1,902,923            1,797,490            1,825,313      
      Commercial real estate, owner occupied             593,675               599,488               605,993               622,072               633,596      
      Commercial real estate, non-owner occupied          1,036,049            1,040,281            1,077,852            1,103,694            1,082,457      
      Construction and land development             454,022               403,001               395,557               342,335               331,454      
      Construction and land development – LIHTC          1,075,000            1,016,207               917,986               913,841               750,894      
      Multi-family             301,432               289,782               303,662               324,090               329,239      
      Multi-family – LIHTC             950,331               888,517               828,448               973,682            1,148,244      
      Direct financing leases               12,880                 14,773                 17,076                 19,241                 25,808      
      1-4 family real estate             592,253               592,127               588,179               587,512               583,542      
      Consumer             153,564               146,393               146,728               144,845               143,839      
      Total loans/leases $      6,924,924   $      6,823,167   $      6,784,404   $      6,828,802   $      6,854,386      
      Less allowance for credit losses               88,732                 90,354                 89,841                 86,321                 87,706      
      Net loans/leases $      6,836,192   $      6,732,813   $      6,694,563   $      6,742,481   $      6,766,680      
                     
                     
      ANALYSIS OF SECURITIES PORTFOLIO              
      Securities mix:              
      U.S. government sponsored agency securities $           14,267   $           17,487   $           20,591   $           18,621   $           20,101      
      Municipal securities          1,033,642            1,003,985               971,567               965,810               885,046      
      Residential mortgage-backed and related securities               58,864                 43,194                 50,042                 53,488                 54,708      
      Asset backed securities                6,684                  7,764                  9,224                 10,455                 12,721      
      Other securities               67,358                 66,105                 65,745                 39,190                 38,464      
      Trading securities (3)               82,900                 82,445                 83,529                 58,685                 22,362      
      Total securities $      1,263,715   $      1,220,980   $      1,200,698   $      1,146,249   $      1,033,402      
      Less allowance for credit losses                   263                     263                     263                     203                     203      
      Net securities $      1,263,452   $      1,220,717   $      1,200,435   $      1,146,046   $      1,033,199      
                     
      ANALYSIS OF DEPOSITS              
      Deposit mix:              
      Noninterest-bearing demand deposits $         952,032   $         963,851   $         921,160   $         969,348   $         956,445      
      Interest-bearing demand deposits          5,087,783            5,119,601            4,828,216            4,715,087            4,644,918      
      Time deposits             974,341               951,606               953,496               942,847               859,593      
      Brokered deposits             304,197               302,332               358,315               357,351               303,711      
      Total deposits $      7,318,353   $      7,337,390   $      7,061,187   $      6,984,633   $      6,764,667      
                     
      ANALYSIS OF BORROWINGS              
      Borrowings mix:              
      Term FHLB advances $         145,383   $         145,383   $         145,383   $         145,383   $         135,000      
      Overnight FHLB advances                80,000                         –               140,000               230,000               350,000      
      Other short-term borrowings                1,350                  2,050                  1,800                  2,750                  1,600      
      Subordinated notes             233,701               233,595               233,489               233,383               233,276      
      Junior subordinated debentures               48,925                 48,893                 48,860                 48,828                 48,795      
      Total borrowings $         509,359   $         429,921   $         569,532   $         660,344   $         768,671      
                     
    (1) Loans with a fair value of $0 million, $0 million, $0 million, $165.9 million and $243.2 million have been identified for securitization and are included in LHFS at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.
    		    
    (2) Loan categories with significant LIHTC loan balances have been broken out separately.  Total LIHTC balances within the loan/lease portfolio were $2.3 billion at June 30, 2025.    
    (3) Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company.    
       
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                   
          For the Quarter Ended
          June 30, March 31, December 31, September 30, June 30,
           2025   2025     2024     2024    2024
                   
          (dollars in thousands, except per share data)
                   
    INCOME STATEMENT            
    Interest income   $             120,247 $             116,673   $             121,642   $             125,420   $             119,746
    Interest expense                    58,165                  56,687                    60,438                    65,698                    63,583
    Net interest income                     62,082                  59,986                    61,204                    59,722                    56,163
    Provision for credit losses                      4,043                    4,234                      5,149                      3,484                      5,496
    Net interest income after provision for credit losses   $              58,039 $              55,752   $              56,055   $              56,238   $              50,667
                   
                   
    Trust fees (1)   $                3,395 $                3,686   $                3,456   $                3,270   $                3,103
    Investment advisory and management fees (1)                      1,254                    1,254                      1,320                      1,229                      1,214
    Deposit service fees                      2,187                    2,183                      2,228                      2,294                      1,986
    Gains on sales of residential real estate loans, net                         556                       297                         734                         385                         540
    Gains on sales of government guaranteed portions of loans, net                          40                        61                          49                           –                             12
    Capital markets revenue                      9,869                    6,516                    20,552                    16,290                    17,758
    Earnings on bank-owned life insurance                         998                       524                         797                         814                      2,964
    Debit card fees                      1,648                    1,488                      1,555                      1,575                      1,571
    Correspondent banking fees                         699                       614                         560                         507                         510
    Loan related fee income                      1,096                       898                         950                         949                         962
    Fair value gain (loss) on derivatives and trading securities                         230                   (1,007 )                   (1,781 )                      (886 )                        51
    Other                          143                       378                         205                         730                         218
    Total noninterest income   $              22,115 $              16,892   $              30,625   $              27,157   $              30,889
                   
                   
    Salaries and employee benefits   $              28,474 $              27,364   $              33,610   $              31,637   $              31,079
    Occupancy and equipment expense                      6,837                    6,455                      6,354                      6,168                      6,377
    Professional and data processing fees                      6,089                    5,144                      5,480                      4,457                      4,823
    Restructuring expense                           –                            –                              –                         1,954                           –   
    FDIC insurance, other insurance and regulatory fees                      1,960                    1,970                      1,934                      1,711                      1,854
    Loan/lease expense                         407                       381                         513                         587                         151
    Net cost of (income from) and gains/losses on operations of other real estate                          50                         (9 )                        23                         (42 )                        28
    Advertising and marketing                      1,746                    1,613                      1,886                      2,124                      1,565
    Communication and data connectivity                         274                       290                         345                         333                         318
    Supplies                           252                       207                         252                         278                         259
    Bank service charges                         720                       596                         635                         603                         622
    Correspondent banking expense                         314                       329                         328                         325                         363
    Intangibles amortization                         661                       661                         691                         690                         690
    Goodwill impairment                           –                            –                              –                            431                           –   
    Payment card processing                         547                       594                         516                         785                         706
    Trust expense                         413                       357                         381                         395                         379
    Other                          839                       587                         551                      1,129                         674
    Total noninterest expense   $              49,583 $              46,539   $              53,499   $              53,565   $              49,888
                   
    Net income before income taxes   $              30,571 $              26,105   $              33,181   $              29,830   $              31,668
    Federal and state income tax expense                      1,552                       308                      2,956                      2,045                      2,554
    Net income     $              29,019 $              25,797   $              30,225   $              27,785   $              29,114
                   
    Basic EPS   $                  1.71 $                  1.53   $                  1.80   $                  1.65   $                  1.73
    Diluted EPS   $                  1.71 $                  1.52   $                  1.77   $                  1.64   $                  1.72
                   
                   
    Weighted average common shares outstanding              16,928,542            16,900,785              16,871,652              16,846,200              16,814,814
    Weighted average common and common equivalent shares outstanding              17,006,282            17,013,992              17,024,481              16,982,400              16,921,854
                   
    (1) Trust fees and investment advisory and management fees when combined are referred to as wealth management revenue.          
       
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
               
          For the Six Months Ended
          June 30,   June 30,
            2025       2024  
               
          (dollars in thousands, except per share data)
               
    INCOME STATEMENT        
    Interest income   $             236,920     $             234,795  
    Interest expense                  114,852                    123,933  
    Net interest income                   122,068                    110,862  
    Provision for credit losses                      8,277                        8,465  
    Net interest income after provision for credit losses   $             113,791     $             102,397  
               
               
    Trust fees     $                7,081     $                6,302  
    Investment advisory and management fees                      2,508                        2,315  
    Deposit service fees                      4,370                        4,008  
    Gains on sales of residential real estate loans, net                         853                           922  
    Gains on sales of government guaranteed portions of loans, net                         101                            36  
    Capital markets revenue                    16,385                      34,215  
    Earnings on bank-owned life insurance                      1,522                        3,832  
    Debit card fees                      3,136                        3,037  
    Correspondent banking fees                      1,313                        1,022  
    Loan related fee income                      1,994                        1,798  
    Fair value loss on derivatives and trading securities                        (777 )                        (112 )
    Other                          521                           372  
    Total noninterest income   $              39,007     $              57,747  
               
               
    Salaries and employee benefits   $              55,838     $              62,939  
    Occupancy and equipment expense                    13,292                      12,891  
    Professional and data processing fees                    11,233                        9,436  
    FDIC insurance, other insurance and regulatory fees                      3,930                        3,799  
    Loan/lease expense                         788                           529  
    Net cost of (income from) and gains/losses on operations of other real estate                        41                             (2 )
    Advertising and marketing                      3,359                        3,048  
    Communication and data connectivity                         564                           719  
    Supplies                          459                           534  
    Bank service charges                      1,316                        1,190  
    Correspondent banking expense                         643                           668  
    Intangibles amortization                      1,322                        1,380  
    Payment card processing                      1,141                        1,352  
    Trust expense                         770                           804  
    Other                       1,426                        1,291  
    Total noninterest expense   $              96,122     $             100,578  
               
    Net income before income taxes   $              56,676     $              59,566  
    Federal and state income tax expense                      1,860                        3,726  
    Net income    $              54,816     $              55,840  
               
    Basic EPS   $                  3.24     $                  3.32  
    Diluted EPS   $                  3.22     $                  3.30  
               
               
    Weighted average common shares outstanding              16,914,663                16,799,081  
    Weighted average common and common equivalent shares outstanding              17,010,136                16,916,264  
                     
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                       
        As of and for the Quarter Ended   For the Six Months Ended
        June 30,  March 31, December 31, September 30, June 30,   June 30, June 30, 
          2025     2025     2024     2024     2024       2025     2024  
                       
        (dollars in thousands, except per share data)
                       
      COMMON SHARE DATA                
      Common shares outstanding         16,934,698          16,920,363          16,882,045          16,861,108          16,824,985        
      Book value per common share (1) $             62.04   $             60.44   $             59.08   $             57.92   $             55.65        
      Tangible book value per common share (Non-GAAP) (2) $             53.28   $             51.64   $             50.21   $             49.00   $             46.65        
      Closing stock price $             67.90   $             71.32   $             80.64   $             74.03   $             60.00        
      Market capitalization $      1,149,866   $      1,206,760   $      1,361,368   $      1,248,228   $      1,009,499        
      Market price / book value   109.45 %   117.99 %   136.49 %   127.81 %   107.82 %      
      Market price / tangible book value   127.45 %   138.11 %   160.59 %   151.07 %   128.62 %      
      Earnings per common share (basic) LTM (3) $              6.69   $              6.71   $              6.77   $              6.93   $              6.78        
      Price earnings ratio LTM (3)  10.15 x   10.63 x   11.91 x   10.68 x   8.85 x       
      TCE / TA (Non-GAAP) (4)   9.92 %   9.70 %   9.55 %   9.24 %   9.00 %      
                       
                       
      CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY        
      Beginning balance $      1,022,747   $         997,387   $         976,620   $         936,319   $         907,342        
      Net income               29,019                 25,797                 30,225                 27,785                 29,114        
      Other comprehensive income (loss), net of tax               (1,671 )                   404                 (9,628 )               12,057                    (368 )      
      Common stock cash dividends declared               (1,016 )               (1,015 )               (1,013 )               (1,012 )               (1,008 )      
      Other (5)                1,475                     174                  1,183                  1,471                  1,239        
      Ending balance $      1,050,554   $      1,022,747   $         997,387   $         976,620   $         936,319        
                       
                       
      REGULATORY CAPITAL RATIOS (6):                
      Total risk-based capital ratio   14.26 %   14.18 %   14.10 %   13.87 %   14.21 %      
      Tier 1 risk-based capital ratio   10.96 %   10.81 %   10.57 %   10.33 %   10.49 %      
      Tier 1 leverage capital ratio   11.22 %   11.06 %   10.73 %   10.50 %   10.40 %      
      Common equity tier 1 ratio   10.43 %   10.27 %   10.03 %   9.79 %   9.92 %      
                       
                       
      KEY PERFORMANCE RATIOS AND OTHER METRICS                 
      Return on average assets (annualized)   1.27 %   1.14 %   1.34 %   1.24 %   1.33 %     1.21 %   1.30 %
      Return on average total equity (annualized)   11.15 %   10.14 %   12.15 %   11.55 %   12.63 %     10.65 %   12.32 %
      Net interest margin   2.97 %   2.95 %   2.95 %   2.90 %   2.82 %     2.95 %   2.82 %
      Net interest margin (TEY) (Non-GAAP)(7)   3.46 %   3.42 %   3.43 %   3.37 %   3.27 %     3.45 %   3.26 %
      Efficiency ratio (Non-GAAP) (8)   58.89 %   60.54 %   58.26 %   61.65 %   57.31 %     59.68 %   59.65 %
      Gross loans/leases held for investment / total assets    74.91 %   74.53 %   75.14 %   73.30 %   74.48 %     74.91 %   74.48 %
      Gross loans/leases held for investment / total deposits    94.61 %   92.96 %   96.05 %   95.38 %   97.69 %     94.61 %   97.69 %
      Effective tax rate   5.08 %   1.18 %   8.91 %   6.86 %   8.06 %     3.28 %   6.26 %
      Full-time equivalent employees (9)                1,001                     972                     980                     976                     988                     1,001                      988  
                       
                       
      AVERAGE BALANCES                 
      Assets $      9,155,473   $      9,015,439   $      9,050,280   $      8,968,653   $      8,776,002     $       9,085,843   $       8,663,429  
      Loans/leases          6,881,731            6,790,312            6,839,153            6,840,527            6,779,075               6,836,274             6,688,844  
      Deposits          7,218,540            7,146,286            7,109,567            6,858,196            6,687,188               7,182,612             6,641,324  
      Total stockholders’ equity          1,041,428            1,017,487               995,012               962,302               921,986               1,029,524                912,679  
                       
    (1 ) Includes accumulated other comprehensive income (loss). 
    (2 ) Includes accumulated other comprehensive income (loss) and excludes intangible assets.  See GAAP to Non-GAAP reconciliations.   
    (3 ) LTM : Last twelve months.        
    (4 ) TCE / TCA : tangible common equity / total tangible assets.  See GAAP to non-GAAP reconciliations.     
    (5 ) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.     
    (6 ) (6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.    
    (7 ) TEY : Tax equivalent yield.  See GAAP to Non-GAAP reconciliations.       
    (8 ) See GAAP to Non-GAAP reconciliations.        
    (9 ) The increase in full-time equivalent employees in the second quarter of 2025 includes 21 summer interns.     
         
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                               
      ANALYSIS OF NET INTEREST INCOME AND MARGIN                  
                               
          For the Quarter Ended
          June 30, 2025   March 31, 2025   June 30, 2024
           Average
    Balance     		  Interest
    Earned or
    Paid     		  Average
    Yield or Cost     		    Average
    Balance     		  Interest
    Earned or
    Paid     		  Average
    Yield or Cost     		    Average
    Balance     		  Interest
    Earned or
    Paid     		  Average
    Yield or Cost 
                               
          (dollars in thousands)
                               
      Fed funds sold   $        14,285 $             159 4.40 %   $          9,009 $              99 4.40 %   $        13,065 $           183 5.54 %
      Interest-bearing deposits at financial institutions          151,898              1,634 4.31 %            166,897              1,804 4.38 %              80,998            1,139 5.66 %
      Investment securities – taxable          401,657              4,805 4.79 %            400,779              4,588 4.59 %            377,747            4,286 4.53 %
      Investment securities – nontaxable (1)          893,753             12,872 5.76 %            843,476            11,722 5.57 %            704,761            9,462 5.37 %
      Restricted investment securities            34,037                 622 7.23 %              30,562                534 6.99 %              43,398               869 7.92 %
      Loans (1)         6,881,731           110,245 6.43 %         6,790,312          107,439 6.42 %         6,779,075         112,719 6.69 %
      Total earning assets (1) $    8,377,361 $       130,337 6.24 %   $    8,241,035 $      126,186 6.20 %   $    7,999,044 $     128,658 6.46 %
                               
      Interest-bearing deposits $    5,080,367 $         38,604 3.05 %   $    5,005,853 $        37,698 3.05 %   $    4,649,625 $       40,924 3.54 %
      Time deposits         1,193,035             12,409 4.17 %         1,204,593            12,690 4.27 %         1,091,870           12,128 4.47 %
      Short-term borrowings              1,420                   15 4.23 %                1,839                  18 3.97 %                1,622                 21 5.18 %
      Federal Home Loan Bank advances           250,603              2,853 4.50 %            177,883              1,996 4.49 %            464,231            6,238 5.32 %
      Subordinated debentures          233,631              3,599 6.16 %            233,525              3,601 6.17 %            233,207            3,582 6.14 %
      Junior subordinated debentures            48,904                 685 5.54 %              48,871                684 5.60 %              48,774               688 5.58 %
      Total interest-bearing liabilities $    6,807,960 $         58,165 3.42 %   $    6,672,564 $        56,687 3.44 %   $    6,489,329 $       63,581 3.93 %
                               
      Net interest income (1)   $         72,172       $        69,499       $       65,077  
      Net interest margin (2)     2.97 %       2.95 %       2.82 %
      Net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.46 %       3.42 %       3.27 %
      Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.45 %       3.41 %       3.26 %
      Cost of funds (4)       3.01 %       3.02 %       3.43 %
                               
                               
          For the Six Months Ended        
          June 30, 2025   June 30, 2024    
           Average
    Balance     		  Interest
    Earned or
    Paid     		  Average
    Yield or Cost     		    Average
    Balance     		  Interest
    Earned or
    Paid     		  Average
    Yield or Cost     		        
                               
          (dollars in thousands)        
                               
      Fed funds sold  $        11,662 $             258 4.40 %   $        16,510 $             452 5.41 %        
      Interest-bearing deposits at financial institutions          159,356              3,438 4.35 %              86,277              2,339 5.45 %        
      Investment securities – taxable          401,220              9,393 4.69 %            375,644              8,546 4.54 %        
      Investment securities – nontaxable (1)          868,754             24,594 5.67 %            695,365            18,813 5.41 %        
      Restricted investment securities            32,309              1,156 7.12 %              40,742              1,543 7.49 %        
      Loans (1)         6,836,274           217,684 6.42 %         6,688,844          220,392 6.63 %        
      Total earning assets (1) $    8,309,575 $       256,523 6.22 %   $    7,903,382 $      252,085 6.41 %        
                               
      Interest-bearing deposits $    5,041,914 $         76,302 3.05 %   $    4,589,479 $        80,027 3.51 %        
      Time deposits        1,198,782             25,098 4.22 %         1,099,746            24,473 4.48 %        
      Short-term borrowings              1,629                   33 4.05 %                1,688                  44 5.19 %        
      Federal Home Loan Bank advances          214,444              4,849 4.50 %            409,725            10,977 5.30 %        
      Subordinated debentures          233,579              7,201 6.17 %            233,154              7,062 6.06 %        
      Junior subordinated debentures            48,888              1,369 5.57 %              48,758              1,381 5.60 %        
      Total interest-bearing liabilities $    6,739,236 $       114,852 3.43 %   $    6,382,550 $      123,964 3.90 %        
                               
      Net interest income (1)   $       141,671       $      128,121          
      Net interest margin (2)     2.95 %       2.82 %        
      Net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.45 %       3.26 %        
      Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.44 %       3.24 %        
      Cost of funds (4)       3.01 %       3.39 %        
                               
                               
    (1 ) Includes nontaxable securities and loans.  Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.  
    (2 ) See “Select Financial Data – Subsidiaries” for a breakdown of amortization/accretion included in net interest margin for each period presented.     
    (3 ) TEY : Tax equivalent yield.  See GAAP to Non-GAAP reconciliations.           
    (4 ) Cost of funds includes the effect of noninterest-bearing deposits.           
         
    QCR Holdings, Inc.  
    Consolidated Financial Highlights  
    (Unaudited)  
                   
        As of  
        June 30, March 31,  December 31, September 30, June 30,  
          2025     2025     2024     2024     2024    
                   
        (dollars in thousands, except per share data)  
                   
      ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES            
      Beginning balance $         90,354   $            89,841   $         86,321   $         87,706   $         84,470    
      Change in ACL for transfer of loans to LHFS                    –                           –                        93                (1,812 )                  498    
      Credit loss expense                4,667                   4,743                 6,832                 3,828                 4,343    
      Loans/leases charged off              (6,490 )                (4,944 )              (4,787 )              (3,871 )              (1,751 )  
      Recoveries on loans/leases previously charged off                  201                      714                 1,382                    470                    146    
      Ending balance $         88,732   $            90,354   $         89,841   $         86,321   $         87,706    
                   
                   
      NONPERFORMING ASSETS             
      Nonaccrual loans/leases  $         42,482   $            47,259   $         40,080   $         33,480   $         33,546    
      Accruing loans/leases past due 90 days or more                     7                      356                 4,270                 1,298                     87    
      Total nonperforming loans/leases             42,489                  47,615               44,350               34,778               33,633    
      Other real estate owned                   62                      402                    661                    369                    369    
      Other repossessed assets                  113                      122                    543                    542                    512    
      Total nonperforming assets $         42,664   $            48,139   $         45,554   $         35,689   $         34,514    
                   
                   
      ASSET QUALITY RATIOS            
      Nonperforming assets / total assets    0.46 %   0.53 %   0.50 %   0.39 %   0.39 %  
      ACL for loans and leases / total loans/leases held for investment   1.28 %   1.32 %   1.32 %   1.30 %   1.33 %  
      ACL for loans and leases / nonperforming loans/leases    208.84 %   189.76 %   202.57 %   248.21 %   260.77 %  
      Net charge-offs as a % of average loans/leases   0.09 %   0.06 %   0.05 %   0.05 %   0.02 %  
                   
                   
                   
      INTERNALLY ASSIGNED RISK RATING (1)            
      Special mention $         68,621   $            55,327   $         73,636   $         80,121   $         85,096    
      Substandard (2)             81,040                  85,033               84,930               70,022               80,345    
      Doubtful (2)                    –                           –                         –                         –                         –       
      Total Criticized loans (3) $        149,661   $          140,360   $        158,566   $        150,143   $        165,441    
                   
      Classified loans as a % of total loans/leases (2)   1.17 %   1.25 %   1.25 %   1.03 %   1.17 %  
      Total Criticized loans as a % of total loans/leases (3)   2.16 %   2.06 %   2.34 %   2.20 %   2.41 %  
                   
    (1 ) Amounts exclude the government guaranteed portion, if any.  The Company assigns internal risk ratings of Pass for the government guaranteed portion.
    (2 ) Classified loans are defined as loans with internally assigned risk ratings of 10 or 11, regardless of performance, and include loans identified as Substandard or Doubtful.
    (3 ) Total Criticized loans are defined as loans with internally assigned risk ratings of 9, 10, or 11 , regardless of performance, and include loans identified as Special Mention, Substandard, or Doubtful.
         
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                           
          For the Quarter Ended For the Year Ended
          June 30,    March 31,   June 30,   June 30,   June 30,
      SELECT FINANCIAL DATA – SUBSIDIARIES     2025       2025       2024       2025       2024  
          (dollars in thousands)
                           
      TOTAL ASSETS                    
      Quad City Bank and Trust (1)   $          2,662,450     $          2,777,634     $          2,559,049          
      m2 Equipment Finance, LLC                  242,722                    276,096                    359,012          
      Cedar Rapids Bank and Trust                2,664,293                  2,617,143                  2,428,267          
      Community State Bank                1,605,966                  1,583,646                  1,531,109          
      Guaranty Bank                 2,365,944                  2,331,944                  2,369,754          
                           
      TOTAL DEPOSITS                    
      Quad City Bank and Trust (1)   $          2,309,942     $          2,397,047     $          2,100,520          
      Cedar Rapids Bank and Trust                1,884,370                  1,883,952                  1,721,564          
      Community State Bank                1,272,296                  1,238,307                  1,188,551          
      Guaranty Bank                 1,866,749                  1,840,774                  1,791,448          
                           
      TOTAL LOANS & LEASES                    
      Quad City Bank and Trust (1)   $          2,032,168     $          2,041,181     $          2,107,605          
      m2 Equipment Finance, LLC                  250,019                    284,983                    363,897          
      Cedar Rapids Bank and Trust                1,852,316                  1,790,065                  1,736,438          
      Community State Bank                1,206,735                  1,197,005                  1,162,686          
      Guaranty Bank                 1,833,706                  1,794,915                  1,847,658          
                           
      TOTAL LOANS & LEASES / TOTAL DEPOSITS                    
      Quad City Bank and Trust (1)     88 %     85 %     100 %        
      Cedar Rapids Bank and Trust     98 %     95 %     101 %        
      Community State Bank     95 %     97 %     98 %        
      Guaranty Bank      98 %     98 %     103 %        
                           
                           
      TOTAL LOANS & LEASES / TOTAL ASSETS                    
      Quad City Bank and Trust (1)     76 %     73 %     82 %        
      Cedar Rapids Bank and Trust     70 %     68 %     72 %        
      Community State Bank     75 %     76 %     76 %        
      Guaranty Bank      78 %     77 %     78 %        
                           
      ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT                    
      Quad City Bank and Trust (1)     1.32 %     1.44 %     1.43 %        
      m2 Equipment Finance, LLC     4.26 %     4.37 %     3.86 %        
      Cedar Rapids Bank and Trust      1.35 %     1.38 %     1.38 %        
      Community State Bank     1.09 %     1.08 %     1.08 %        
      Guaranty Bank      1.29 %     1.30 %     1.13 %        
                           
      RETURN ON AVERAGE ASSETS (ANNUALIZED)                    
      Quad City Bank and Trust (1)     1.24 %     1.31 %     0.88 %     1.28 %     0.84 %
      Cedar Rapids Bank and Trust     2.36 %     2.14 %     2.94 %     2.25 %     3.01 %
      Community State Bank     1.31 %     1.07 %     1.26 %     1.19 %     1.25 %
      Guaranty Bank      0.85 %     0.72 %     1.42 %     0.79 %     1.15 %
                           
      NET INTEREST MARGIN PERCENTAGE (2)                    
      Quad City Bank and Trust (1)     3.45 %     3.45 %     3.39 %     3.45 %     3.35 %
      Cedar Rapids Bank and Trust     3.99 %     4.00 %     3.75 %     4.00 %     3.76 %
      Community State Bank      3.87 %     3.78 %     3.72 %     3.83 %     3.74 %
      Guaranty Bank (3)     3.11 %     3.05 %     2.99 %     3.08 %     2.99 %
                           
      ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET                    
      INTEREST MARGIN, NET                    
      Community State Bank   $                     (1 )   $                     (1 )   $                     (1 )   $                     (2 )   $                     (2 )
      Guaranty Bank                         118                           218                           301                           336       697  
      QCR Holdings, Inc. (4)                         (33 )                         (33 )                         (32 )                         (66 )     (64 )
                           
    (1 ) Quad City Bank and Trust amounts include m2 Equipment Finance, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Equipment Finance, LLC  is also presented separately for certain (applicable) measurements.
    (2 ) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
    (3 ) Guaranty Bank’s net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 2.86% for the quarter ended June 30, 2025, 2.91% for the quarter ended March 31, 2025 and 2.86% for the quarter ended June 30, 2024.  
    (4 ) Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.
    QCR Holdings, Inc.    
    Consolidated Financial Highlights    
    (Unaudited)    
                               
          As of  
          June 30,   March 31,    December 31,   September 30,   June 30,     
      GAAP TO NON-GAAP RECONCILIATIONS     2025       2025       2024       2024       2024      
          (dollars in thousands, except per share data)  
      TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)                        
                               
      Stockholders’ equity (GAAP)   $        1,050,554     $        1,022,747     $           997,387     $           976,620     $           936,319      
      Less: Intangible assets                148,333                  148,995                  149,657                  150,347                  151,468      
      Tangible common equity (non-GAAP)   $           902,221     $           873,752     $           847,730     $           826,273     $           784,851      
                               
      Total assets (GAAP)   $        9,242,331     $        9,152,779     $        9,026,030     $        9,088,565     $        8,871,991      
      Less: Intangible assets                148,333                  148,995                  149,657                  150,347                  151,468      
      Tangible assets (non-GAAP)   $        9,093,998     $        9,003,784     $        8,876,373     $        8,938,218     $        8,720,523      
                               
      Tangible common equity to tangible assets ratio (non-GAAP)     9.92 %     9.70 %     9.55 %     9.24 %     9.00 %    
                               
                               
                               
    (1 ) This ratio is a non-GAAP financial measure. The Company’s management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to stockholders’ equity and total assets, which are the most directly comparable GAAP financial measures.
         
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                                   
      GAAP TO NON-GAAP RECONCILIATIONS   For the Quarter Ended   For the Six Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,   June 30,    June 30,
      ADJUSTED NET INCOME (1)     2025       2025       2024       2024       2024       2025       2024  
          (dollars in thousands, except per share data)
                                   
      Net income (GAAP)   $            29,019     $            25,797     $            30,225     $            27,785     $            29,114     $            54,816     $            55,840  
                                   
      Less non-core items (post-tax) (2):                            
      Income:                            
      Fair value loss on derivatives, net                      (397 )                      (156 )                   (2,594 )                      (542 )                      (145 )                      (553 )                      (288 )
      Total non-core income (non-GAAP)   $                (397 )   $                (156 )   $             (2,594 )   $                (542 )   $                (145 )   $                (553 )   $                (288 )
                                   
      Expense:                            
      Goodwill impairment                           –                             –                             –                         431                             –                             –                             –  
      Restructuring expense                           –                             –                             –                      1,544                             –                             –                             –  
      Total non-core expense (non-GAAP)   $                     –     $                     –     $                     –     $              1,975     $                     –     $                     –     $                     –  
                                   
                                   
      Adjusted net income  (non-GAAP) (1)   $            29,416     $            25,953     $            32,819     $            30,302     $            29,259     $            55,369     $            56,128  
                                   
      ADJUSTED EARNINGS PER COMMON SHARE (1)                            
                                   
      Adjusted net income (non-GAAP) (from above)   $            29,416     $            25,953     $            32,819     $            30,302     $            29,259     $            55,369     $            56,128  
                                   
      Weighted average common shares outstanding            16,928,542              16,900,785              16,871,652              16,846,200              16,814,814              16,914,663              16,799,081  
      Weighted average common and common equivalent shares outstanding            17,006,282              17,013,992              17,024,481              16,982,400              16,921,854              17,010,136              16,916,264  
                                   
      Adjusted earnings per common share (non-GAAP):                            
      Basic   $                1.74     $                1.54     $                1.95     $                1.80     $                1.74     $                3.27     $                3.34  
      Diluted   $                1.73     $                1.53     $                1.93     $                1.78     $                1.73     $                3.26     $                3.32  
                                   
      ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)                            
                                   
      Adjusted net income (non-GAAP) (from above)   $            29,416     $            25,953     $            32,819     $            30,302     $            29,259     $            55,369     $            56,128  
                                   
      Average Assets   $        9,155,473     $        9,015,439     $        9,050,280     $        8,968,653     $        8,776,002     $        9,085,843     $        8,663,429  
                                   
      Adjusted return on average assets (annualized) (non-GAAP)     1.29 %     1.15 %     1.45 %     1.35 %     1.33 %     1.22 %     1.30 %
      Adjusted return on average equity (annualized) (non-GAAP)     11.30 %     10.20 %     13.19 %     12.60 %     12.69 %     10.76 %     12.30 %
                                   
      NET INTEREST MARGIN (TEY) (3)                            
                                   
      Net interest income (GAAP)   $            62,082     $            59,986     $            61,204     $            59,722     $            56,163     $           122,068     $           110,862  
      Plus: Tax equivalent adjustment (4)                  10,090                      9,513                      9,698                      9,544                      8,914                    19,603                    17,259  
      Net interest income – tax equivalent (non-GAAP)   $            72,172     $            69,499     $            70,902     $            69,266     $            65,077     $           141,671     $           128,121  
      Less:  Acquisition accounting net accretion                        84                         184                         471                         463                         268                         268                         631  
      Adjusted net interest income   $            72,088     $            69,315     $            70,431     $            68,803     $            64,809     $           141,403     $           127,490  
                                   
      Average earning assets   $        8,377,361     $        8,241,035     $        8,241,190     $        8,183,196     $        7,999,044     $        8,309,575     $        7,903,382  
                                   
      Net interest margin (GAAP)     2.97 %     2.95 %     2.95 %     2.90 %     2.82 %     2.97 %     2.82 %
      Net interest margin (TEY) (non-GAAP)     3.46 %     3.42 %     3.43 %     3.37 %     3.27 %     3.45 %     3.26 %
      Adjusted net interest margin (TEY) (non-GAAP)     3.45 %     3.41 %     3.40 %     3.34 %     3.26 %     3.44 %     3.24 %
                                   
      EFFICIENCY RATIO (5)                            
                                   
      Noninterest expense (GAAP)   $            49,583     $            46,539     $            53,499     $            53,565     $            49,888     $            96,122     $           100,578  
                                   
      Net interest income (GAAP)   $            62,082     $            59,986     $            61,204     $            59,722     $            56,163     $           122,068     $           110,862  
      Noninterest income (GAAP)                  22,115                    16,892                    30,625                    27,157                    30,889                    39,007                    57,747  
      Total income   $            84,197     $            76,878     $            91,829     $            86,879     $            87,052     $           161,075     $           168,609  
                                   
      Efficiency ratio (noninterest expense/total income) (non-GAAP)     58.89 %     60.54 %     58.26 %     61.65 %     57.31 %     59.68 %     59.65 %
      Adjusted efficiency ratio (core noninterest expense/core total income) (non-GAAP)     58.54 %     60.38 %     56.25 %     58.45 %     57.19 %     59.42 %     59.52 %
                                   
                                   
    (1 ) Adjusted net income, adjusted earnings per common share, adjusted return on average assets and average equity are non-GAAP financial measures. The Company’s management believes that these measurements are important to investors as they exclude non-core or non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. In compliance with applicable rules of the SEC, these non-GAAP measures are reconciled to net income, which is the most directly comparable GAAP financial measure.
    (2 ) Non-core or non-recurring items (post-tax) are calculated using an estimated effective federal tax rate of 21% with the exception of goodwill impairment which is not deductible for tax.    
    (3 ) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.        
    (4 ) Net interest margin (TEY) is a non-GAAP financial measure. The Company’s management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure.  In addition, the Company calculates net interest margin without the impact of acquisition accounting net accretion as this can fluctuate and it’s difficult to provide a more realistic run-rate for future periods.
    (5 ) Efficiency ratio is a non-GAAP measure. The Company’s management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue. In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most directly comparable GAAP financial measures.
           

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

    Second Quarter 2025 Highlights

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

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

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

    Income Statement Highlights

    Net Interest Income

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

    Provision for Credit Losses

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

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

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

    Non-Interest Income

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

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

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

    Non-Interest Expense

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

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

    Income Taxes

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

    Balance Sheet Highlights

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

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

    Capital

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

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

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

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

    Credit Quality

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

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

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

    Earnings Conference Call

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

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

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

    About Horizon Bancorp, Inc.

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

    Use of Non-GAAP Financial Measures

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

    Forward Looking Statements

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

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

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

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

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

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

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

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

    Second Quarter 2025 Highlights

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

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

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

    Income Statement Highlights

    Net Interest Income

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

    Provision for Credit Losses

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

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

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

    Non-Interest Income

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

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

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

    Non-Interest Expense

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

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

    Income Taxes

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

    Balance Sheet Highlights

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

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

    Capital

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

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

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

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

    Credit Quality

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

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

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

    Earnings Conference Call

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

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

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

    About Horizon Bancorp, Inc.

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

    Use of Non-GAAP Financial Measures

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

    Forward Looking Statements

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

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

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

    The MIL Network –

  • MIL-OSI USA: USGS Geologic Mapping Project Supports Critical Mineral Exploration, Enhances Public Safety in the Southeast

    Source: US Geological Survey

    The project aims to create detailed geologic maps of the Atlantic Seaboard Fall Line, a geologic boundary from New Jersey to Georgia. This area features rapids in streams and rivers, with higher land to the northwest. The Fall Line marks a 10-mile-wide area between the hard metamorphic rock of the Piedmont to the west and the softer sedimentary rock of the Coastal Plain to the east.

    These new geologic maps will fill in knowledge gaps in many places in the southeastern U.S. that have not been mapped in detail before.

    “New technologies and mapping techniques allow us to create more accurate maps of what lies underground, providing crucial geologic information, such as where important minerals could be or where earthquake risks are greater” said Mark Carter, a USGS research geologist and project lead with the USGS Florence Bascom Geoscience Center. 

    A key focus of this mapping project is to inform State Geological Surveys, private industry, and key decision-makers where critical minerals vital to the economy and national security might be located. 

    As demand for rare earth elements and other critical minerals grows for use in technology, energy, and defense sectors, this project can provide vital data that helps the U.S. secure domestic sources of critical minerals, thus reducing the nation’s dependence on foreign sources. 

    “Critical minerals are needed for almost every part of modern life,” Carter explained. “Projects like this one can make the U.S. more self-reliant by helping us find where these resources are.”

    Critical minerals like titanium are found in sandy deposits along the coastal plain, originating from weathered rocks in and around the Appalachians and washed downstream. While experts know the current locations of many of these sandy deposits, their original sources in Piedmont and Blue Ridge bedrock upstream are still unknown. Discovering the origin of these minerals is important because there may be large amounts of valuable resources yet to be uncovered, added Carter. 

    Titanium is one of 50 critical minerals essential to the U.S. economy and national security. More than 95% of titanium used in the U.S. during 2024 was imported from other countries, so finding domestic sources of titanium is important for the U.S. to be self-sufficient. Titanium’s high strength-to-weight ratio is crucial for components in airplanes, spacecraft, military armor, and medical implants. Most titanium ore is processed into titanium dioxide, a pigment used in various products like paints, plastics, toothpaste and sunscreen. 

    In addition to its potential in locating critical minerals, this project fills a critical public safety need by assessing areas for earthquake hazards. 

    Many older geologic maps of the southeastern U.S. do not provide the detail needed to identify possible geological hazards, including rare but severe earthquakes that endanger lives and infrastructure. Updated maps can improve geological understanding and knowledge on earthquake risks, helping local governments and emergency services better prepare for and mitigate the impacts of earthquakes. This improved understanding helps local and state governments maximize the effectiveness of building codes, emergency plans, and public awareness programs.

    “At the heart of this mapping endeavor is a commitment to public safety,” said Carter. “The project will provide local agencies and policymakers with the knowledge needed to implement effective hazard mitigation strategies, which can help save lives, protect communities and reduce economic losses in the event of a future earthquake.”

    At present, the research for the project is focused on the Fall Line in southeast Virginia, northeastern North Carolina, and central Georgia. Much of the work in Georgia is focused on Federal lands, including the Oconee National Forests and both the Piedmont and Bond Swamp National Wildlife Refuges. 

    During fieldwork, geologists traverse varied terrains to study rocks outcrops, topographic features, and soils while collecting samples for laboratory analysis. A key aspect of geologic mapping is laboratory work to determine the age of rocks and sediments. At USGS labs, various techniques are employed to achieve this, such as uranium-lead dating for zircon minerals, pollen analysis to determine sediment age, cosmogenic nuclide dating to measure sunlight exposure, and optically stimulated luminescence dating to find out when sands were last exposed to sunlight, which tells experts when the sands were buried.

    This field and laboratory work also helps other parts of the USGS like the Earth Mapping Resources Initiative (Earth MRI), which collects geophysical, geologic, geochemical, and topographic data across all regions of the U.S. to enhance scientific understanding of the nation’s geology and mineral resources. Earth MRI airborne surveys aid geologic mapping by measuring rock characteristics that are not visible to the naked eye but can be matched to geologic features that span large regions, even in remote, rugged areas or areas covered by vegetation or water. This project and similar efforts by USGS and State geological survey partners provide essential ground-truth information to interpret the geophysical data and infer the bedrock geology and features such as faults that are concealed beneath younger soils and sediment.

    To learn more about this USGS National Cooperative Geologic Mapping Program project, visit: Geology of the eastern Piedmont and upper Coastal Plain along the Fall Zone, Virginia to Georgia | U.S. Geological Survey

    MIL OSI USA News –

  • MIL-OSI United Kingdom: PM call with President Sandu of the Republic of Moldova: 23 July 2025

    Source: United Kingdom – Executive Government & Departments

    Press release

    PM call with President Sandu of the Republic of Moldova: 23 July 2025

    The Prime Minister met the President of the Republic of Moldova, Maia Sandu, this afternoon.

    The Prime Minister met the President of the Republic of Moldova, Maia Sandu, this afternoon.

    Discussing Russia’s illegal war in Ukraine, the leaders agreed to work closely to stop the spread of malign disinformation and illicit finance, and the Prime Minister underscored the need to sanction those who seek to undermine democracy. 

    The Prime Minister updated the President on the progress of the Coalition of the Willing, and how all must ensure Ukraine is in the strongest possible position now and going forwards. The leaders discussed the effectiveness of sanctions on stopping Putin’s war machine, and how the international community must ramp up the pressure.

    The leaders agreed on the importance of an unconditional ceasefire and the necessity of a just and lasting peace in Ukraine.

    They looked forward to speaking soon.

    Updates to this page

    Published 23 July 2025

    MIL OSI United Kingdom –

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

    Source: NASA

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

    MIL OSI USA News –

  • MIL-OSI Security: New operation to uncover fake paintings supported by Eurojust

    Source: Eurojust

    Following a successful major operation in November 2024 to uncover fake paintings, Eurojust has supported the Italian authorities with a new action to retrieve over one hundred false artworks worldwide. In this recent operation, 104 forged paintings of Picasso, Edvard Munch and Paul Klee were seized and brought to Italy. Eurojust assisted with the execution of European Investigation Orders to Germany and Spain, in order to retrieve the fake artworks and prevent them from being sold in auctions.

    In 2022, the Italian Carabinieri’s specialised Command for the Protection of Cultural Heritage started investigations into a specific group of forgers, who counterfeited works of the three painters. The Italian-based culprits used a special graphic design program to print images of the originals on matrices. These were then printed on paper with falsified watermarks and copied signatures of the painters.

     

    To give the fakes a semblance of authenticity, the paper for the prints underwent artificial ageing treatments through coffee or tea baths. Accompanied by forged certificates of free circulation, in order to circumvent authenticity controls by experts, the counterfeited artworks were sent to auction houses outside Italy.

    The investigations by the Carabinieri Command prevented certain fakes from being sold in Germany and Spain, through auction houses. Without this intervention and the support of Eurojust, the forgers would have gained at least EUR 1 million. The Italian authorities requested the support of Eurojust last year, following the successful previous operation to uncover an estimated 2 000 fake paintings.

    The operations were carried out at the request of and by the following authorities:

    • Italy: Carabinieri – Command for the Protection of Cultural Heritage
    • Germany: Public Prosecutor’s Office Stuttgart
    • Spain: Investigative Court no. 9 of Barcelona; Mossos d’Esquadra – Central Brigade for Cultural Heritage

    MIL Security OSI –

  • MIL-OSI United Kingdom: Portmahomack to Tain bus pilot to start

    Source: Scotland – Highland Council

    The Highland Council has announced that a 2 day a week pilot bus service from Portmahomack to Tain will start on Thursday 24 July.

    The 416A service will operate on Tuesdays and Thursdays.

    The first bus of the day will depart from Main Street Portmahomack at 9:40, stopping at Tarrel 9:45am and Shore Road in Inver at 09:51 before arriving in Tain at 10.00am. Another two journeys from Portmahomack will depart at 13:40 and 17:40.

    The two return journeys each Tuesday and Thursday from Tain to Portmahomack depart at 13:15 and 17:15.

    During the summer school holidays, the service will be jointly delivered by The Highland Council and by Rapsons. From Tuesday 19 August, the service will be delivered entirely by Rapsons.

    Chair of The Highland Council’s Economy and Infrastructure Committee, Councillor Ken Gowans said: “As this new twice a week bus is a pilot, people living and visiting in these communities are very much encouraged to use the service. As a bonus, during the school holidays, we will not be charging, so everyone can travel back and forth between Portmahomack and Tain for free.”

    “The pilot will run for 3 months, after which we will assess usage patterns and user feedback.”

    23 Jul 2025

    MIL OSI United Kingdom –

  • 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 –

  • PM Modi arrives in London, begins two-day UK visit

    Source: Government of India

    Source: Government of India (4)

    Prime Minister Narendra Modi arrived in London on Wednesday evening for a two-day official visit to the United Kingdom, marking a key diplomatic engagement aimed at strengthening strategic partnerships and advancing regional cooperation.

    The visit, scheduled for July 23- 24, comes at the invitation of British Prime Minister Keir Starmer and is Modi’s fourth visit to the UK-highlighting the growing depth of bilateral ties.

    “Leaving for the UK, a country with which our Comprehensive Strategic Partnership has achieved significant momentum in the last few years. I look forward to my talks with PM Keir Starmer and my meeting with His Majesty King Charles III,” PM Modi said in a post on X ahead of his arrival.

    According to a statement from the Ministry of External Affairs, the visit will focus on reviewing progress under the Comprehensive Strategic Partnership (CSP), with special emphasis on trade and economy, technology and innovation, defence and security, climate cooperation, health, education, and people-to-people exchanges.

    The two sides are also expected to discuss key regional and global developments of shared interest.

    The visit is seen as an opportunity to inject fresh momentum into the India-UK CSP, with both leaders set to explore new areas of collaboration. A major focus will be the ongoing negotiations around the India-UK Free Trade Agreement (FTA), which aims to enhance bilateral trade and economic integration.

  • 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.

    .

    MIL OSI Russia News –