Farming – Page 252 – NewzIntel.com

MIL-OSI Global: Trump pulls out of WHO and Paris – how did international bodies get through deglobalisation last time around?

Source: The Conversation – UK – By Perri 6, Emeritus Professor of Public Management, Queen Mary University of London

Donald Trump has ordered the US to leave the World Health Organization. Skorzewiak / Shutterstock

Following Donald Trump’s return to the White House, much attention has been given to his plans for tariffs on imported goods, deportations of illegal migrants, and cuts to federal government spending. Fewer column inches have addressed the implications of his presidency for global regulatory bodies.

Just as he did during his first term, Trump has announced the withdrawal of the US from the World Health Organization (WHO) and from the Paris climate accords.

And because his tariffs programme will challenge World Trade Organization (WTO) rules, Trump is likely to continue the US policy of stymieing the WTO’s appellate body, which adjudicates on trade disputes between states. US withdrawals from other international regulatory bodies are also possible.

Each of the bodies from which Trump withdrew last time around survived. However, threats to global regulatory bodies today could be greater than they were during Trump’s first term.

In the US and beyond, deglobalisation has so far been evident only in state policies, and not in trade flows. China, for example, has set up and now dominates several regional investment and trade organisations to provide alternatives to the International Monetary Fund and World Bank.

However, tariff retaliation and bloc-based regulatory standards could soon turn “slowbalisation” – a trend whereby political support for open trade has gradually weakened and the rate of growth in world trade has slowed – into trade deglobalisation.

We have been here before. The 1930s were characterised by high tariffs, breakup of trade into blocs, and withdrawals and expulsions of major powers from global bodies. In the 1940s, which saw the breakout of the second world war, trade was conducted almost exclusively among allies.

Yet almost all international regulatory bodies survived during this period, albeit they were bruised and were able to achieve less as a result.

Our study, which was published in 2021, distinguished pathways through which three distinct groups of global regulatory bodies either survived or else handed over their archives, networks and organisational capacity to their UN-era successors.

Preserving rule sets

One inter-war group of industry-specific global regulators oversaw capital-intensive and infrastructure-heavy international industries such as telecommunications and railways. This group included the International Telecommunications Union and a modest alphabet soup of closely cooperating railway bodies.

In these fields, interconnection depended on common but frequently updated and adjusted rule sets for technology, accounting and routing management. They also required continuous statistical collections by international bureaus.

Unable to agree major regulatory innovation after the global economic crisis began in 1931, these bodies reduced their focus to managing and maintaining their existing rule sets and information services.

On the outbreak of war in Europe, their bureaus went into a phase of severely reduced activity, with many of their activities suspended. However, they continued to collect and publish statistics, maintained their networks within member states, and developed ambitious plans for peacetime.

The International Telecommunications Union and the railway authorities resumed operations shortly after the end of hostilities with their rule sets intact.

Individual brokering work

A second cluster were generic bodies, responsible for the oversight of labour relations and aspects of capital flows. These are faster-moving fields than infrastructure-heavy industries. These bodies included the International Labour Organization (ILO) and the Economic and Financial Organisation of the League of Nations (EFO).

They provided expertise for negotiating agreements on particular problems. In the case of the ILO, this included conventions on working time, women’s working conditions, and forced labour. The EFO brokered financial support with strict conditions for Austria and Hungary, then new and struggling states which faced acute financial crises in the early 1920s.

These organisations faced increasing difficulties during the deglobalisation of the 1930s. But they continued to provide bilaterally negotiated support for many countries. The ILO, for example, provided technical assistance to some south American governments on the design of social insurance schemes, while the EFO’s financial committee worked with central banks.

Survival or bequest was secured by the brokering work of key individual leaders who were able to exploit fluid networks among states, firms and unions in global labour and capital debates.

The EFO secured the transfer of key staff, networks and traditions to post-war bodies including the UN Economic and Social Council and the UN Food and Agriculture Organization. And the ILO’s director-general, Edward Phelan, was crucial in negotiating with the US to relaunch the organisation with a new programme for the post-war era.

New international clubs

A third group of regulatory bodies was created precisely in response to the 1930s global economic crisis. These were international commodity unions for goods such as tin, rubber, tea and sugar.

Most were publicly run cartels, often backed by the imperial blocs that dominated the fragmenting world trade system. Like many cartels, their cohesion was fragile. But many of those that were successfully established managed to survive the 1930s and the war that followed.

Their survival depended less on the formal administrative organisation of the infrastructure bodies or the individual brokering work that sustained the capital and labour bodies. It was dependent more on their ability to draw upon club-like collective bonds both among major producing and exporting firms and among officials across key producer states and imperial authorities.

Within the tightly bonded International Tin Committee, for example, a succession of agreements on prices, quotas and voting rights were settled. Despite initial US reluctance to see these international commodity unions continue into peacetime, President Harry Truman was persuaded of their temporary value for economic order during reconstruction.

Some even continued until the 1970s, when they collapsed in that decade’s global economic turmoil. Freer markets then superseded intergovernmental cartels.

Trump’s policies, as well as those of China, Russia and other major powers, may again endanger the roles of global regulatory bodies. But some will survive by focusing on the routine maintenance services provided by their bureaus, and some will empower individual leaders to negotiate their way to reinvention and survival.

Others will pass their capacity to new agencies when deglobalisation eventually abates. And some new international bodies may emerge in response to conditions in industries most adversely affected by the changing terms of trade.

Our work has led us to conclude that which strategy is chosen depends on two things. First, on the features of the field being regulated. And second on the informal social organisation within the international bodies and member states, which shapes how people can act and the skills they can sustain.

It remains to be seen how informal social organisation in the WHO and climate treaty system will now evolve after US withdrawal.

Eva Heims has received funding from the ESRC.

Martha Prevezer and Perri 6 do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. Trump pulls out of WHO and Paris – how did international bodies get through deglobalisation last time around? – https://theconversation.com/trump-pulls-out-of-who-and-paris-how-did-international-bodies-get-through-deglobalisation-last-time-around-247919

MIL OSI – Global Reports –

January 29, 2025

MIL-OSI: Pando to Bring Cutting-Edge AI Logistics Technology to Manifest 2025

Source: GlobeNewswire (MIL-OSI)

The company will unveil new AI-powered solutions designed to tackle inefficiencies that existing systems and services fail to address
Pando CEO to present the impact of AI in the future of logistics on Tuesday, February 11 at 2 p.m. PT on the Innovation Stage; and provide demonstrations in booth #1408

LAS VEGAS, Jan. 28, 2025 (GLOBE NEWSWIRE) — Pando, an AI-powered logistics technology company, today announced its bringing its cutting-edge technology to Manifest, the premier event for supply chain and logistics innovation, on February 10-12, 2025 in Las Vegas. Pando will unveil its new offering in the AI-powered logistics technology space and provide product demonstrations in booth #1408.

Supply chain disruptions have become a constant challenge in the industry, fueled by geopolitical instability, events such as recent port strikes, changes in trade policies, rising freight costs, and growing expectations for sustainability. In this rapidly changing landscape, Pando is leading the way to solve the global logistics landscape, with its unified and intelligent transportation management platform enabling manufacturers, distributors, and retailers to drive efficiency and agility across their supply chains.

“We are committed to transforming how businesses approach transportation management and logistics through the power of AI and intelligent automation,” said Nitin Jayakrishnan, CEO and co-founder of Pando. “Manifest offers us a unique opportunity to demonstrate our new AI-powered solution designed to augment logistics performance, reduce operational costs, and alleviate the workload of current logistics teams. Our customers have already experienced the impact of these innovations firsthand, and now it’s time for the rest of the supply chain world to see our technology in action.”

During Pando’s presentation on Tuesday, February 11 at 2 p.m. PST on the Innovation Stage, Chief Executive Officer and Co-Founder Nitin Jayakrishnan, will demonstrate the company’s latest product offering and address the transformative impact of AI on the logistics industry.

Manifest is the largest global end-to-end supply chain and logistics technology event in the world, bringing together global supply chain executives, logistics service providers, cutting-edge startups, venture investors, and technology leaders.

For more information on Pando and its offerings, please visit https://pando.ai

About Pando

Pando is an AI-powered, no-code, and unified fulfillment platform that enables manufacturers & retailers to orchestrate both inbound & outbound logistics & fulfillment to improve service levels, reduce carbon footprint, and control freight costs. Pando digitalizes end-to-end freight procure-to-pay operations with freight procurement, multi-modal transportation management (domestic and international), freight audit & payment capabilities in a single platform.

As a partner of choice for Fortune 500 enterprises & presence across the US, Europe & Asia Pacific, Pando is recognized by the World Economic Forum (WEF) as a Technology Pioneer, by Gartner for its Transportation Procurement, Multi-Enterprise Collaboration, & Transportation Management System capabilities, by G2 for its compelling user experience, and by Deloitte as one of the fastest-growing technology companies. Learn more at pando.ai.

Media Contact
Courtney Meints
Skyya PR for Pando
+1 651-329-9098
pando@skyya.com

The MIL Network –

January 29, 2025

MIL-OSI United Kingdom: Fix relationship with Europe to protect Wales’ economy

Source: Party of Wales

Plaid Cymru proposes new law that would undo botched Brexit damage

Wales must reset its relationship with Europe to repair the damage done to the economy caused by Brexit, Plaid Cymru has said.

Plaid Cymru’s spokesperson for Justice and European Affairs Adam Price MS said that a Plaid Cymru Government would introduce a new act to enable Welsh law to be aligned as closely and quickly as possible with essential European standards when it is in Wales’ best interests.

Mr Price said a new European Alignment Act could help reset the relationship between Wales and Europe to protect the economy at a time of growing global instability.

31 January 2025 will mark five years since the UK formally left the European Union.

According to the Economic Cost of Brexit project, the average person in the UK is now £2,000 worse off as a result of Brexit, amplifying the ongoing cost-of-living crisis.

The type of Brexit taken by the last government has cost the Welsh economy up to £4bn.

Plaid Cymru’s spokesperson for Justice and European Affairs Adam Price MS said,

“Five years on, there can be no doubting the extent of the damage that Brexit done to Wales and the wider UK.

“The form of hard Brexit pursued by the last UK Government has cost the Welsh economy up to £4bn. Brexit has reduced the value of Welsh exports by up to £1.1bn. Post-Brexit trade deals have hurt Welsh farmers, fishers and other producers across many key sectors. £1bn has been lost to Wales in the form of European structural and rural development funding.

“Plaid Cymru believe that returning to the single market and customs union as soon as possible would be the best way to begin to undo this economic damage. Under Prime Minister Keir Starmer and his Chancellor Rachel Reeves, Labour are disappointingly resolute in refusing to acknowledge this starkest of economic realities.

“We need an urgent reset in our relationship with the EU, including securing opportunities for young people in Wales to travel, work and study in Europe, and vice versa.

“It is for this reason that I, and Plaid Cymru, are proposing the new European Alignment Act. Such an Act would restore powers we should never have given up and would enable Welsh law to be aligned as closely and quickly as possible with essential European standards when it is in Wales’ best interests.”

“Wales needs to stick as close as we can to our European friends and allies and remain alive to changes in European politics and policy to protect our communities in an ever more insecure and uncertain world.”

MIL OSI United Kingdom –

January 29, 2025

MIL-OSI Europe: Written question – EU-Mercosur agreement – E-000324/2025

Source: European Parliament

Question for written answer E-000324/2025
to the Commission
Rule 144
Regina Doherty (PPE)

The Commission assures citizens that EU food safety standards will be respected for imported products under the proposed EU-Mercosur agreement, even if sanitary and phytosanitary checks have been reduced and customs procedures simplified.

What specific assurances can the Commission provide in terms of respect for EU production standards and product quality?

There are currently significant discrepancies between the two parties in terms of production standards, which is impacting exposed sectors, with EU producers having to respect a greater number of regulations, with less support at their disposal and higher labour costs and standards. These discrepancies may also have implications for the level playing field for farmers, as well as for the guarantee of quality, safety and sustainability standards expected by consumers.

Submitted: 24.1.2025

Last updated: 28 January 2025

MIL OSI Europe News –

January 28, 2025

MIL-OSI Europe: A current flowing to the future

Source: European Investment Bank

Just 25 kilometres northwest of Mostar, another man is on a mission to save his local river. Boro Đolo grew up along the banks of the Lištica River. “Here, people learn to swim before they learn to walk,” he says.

A soft-spoken grandfather, Đolo spends his free time working with a local organisation to restore the area’s native fish population. Professionally, Đolo has devoted 35 years to the water sector, working for the city of Široki Brijeg. There he leads a project aimed at improving wastewater services to protect the Lištica. The city has already built and rehabilitated 25 kilometres of sewer lines and four kilometres of storm drains and is currently constructing a treatment plant to serve its 15 000 residents.

Flowing from a nearby spring, the Lištica River, carves through local landscapes before joining the Neretva near Mostar. “That’s why it’s crucial to keep the Lištica clean. We all live downstream,” Đolo says. “If someone upstream pollutes a river, that pollution affects everyone living downstream.”

The projects in Mostar and Široki Brijeg are part of a larger effort, financed by the European Investment Bank, to improve water and sanitation across the Federation of Bosnia and Herzegovina. The €60 million invested in these initiatives is part of the Bank’s broader €240 million commitments to water infrastructure and flood protection in the country.

“The project covers 19 municipalities and has significantly improved the quality of life for residents,” says Sukavata Bejdić, project lead at the Federal Ministry of Agriculture, Water Management and Forestry. Speaking in her crowded office, surrounded by stacks of paperwork, Bejdić maintains an optimistic attitude and an infectious smile. “Over the last 15 years, this project has brought clean drinking water and a better sewerage system to more than 500 000 people.”

Bejdić knows she’s making a difference. “It’s been a long process and a lot of hard work,” Bejdić says, “but I talk to people on the ground every day, and I’m happy I can do something for them.”

MIL OSI Europe News –

January 28, 2025

MIL-OSI Russia: Sergei Sobyanin: A new coworking center for NGOs has opened at VDNKh

Translartion. Region: Russians Fedetion –

Source: Moscow Government – Government of Moscow –

On VDNKh a new one has opened coworking center for non-profit organizations (NGO). Sergei Sobyanin spoke about this in his telegram channel.

“It is located in pavilion No. 44 “Rabbit Breeding” – a cultural heritage site of federal significance. We carried out restoration and adapted the pavilion for modern use,” the Mayor of Moscow noted.

Source: Sergei Sobyanin’s Telegram channel @Mos_Sobyanin

The area of the new coworking center is more than 750 square meters. It can organize and hold events of any format – from negotiations and conferences to creative evenings and concerts with live music. The center has a stage with a multimedia LED screen, a sound amplification system and vocal microphones.

Several rooms are available to visitors. Among them is a presentation hall for 75 people for lectures, trainings and seminars, a closed meeting room where you can organize meetings, hold a master class or work independently. There is also a coworking room for working alone or with colleagues.

In addition, you can visit the lounge area and organize a coffee break. The new center is equipped in accordance with the requirements of an accessible environment: convenient descents and ramps are provided for people with limited mobility.

The coworking center can be used by employees of Moscow NGOs who have entered into agreements agreement with the Moscow House of Public Organizations.

Now the quantity spaces with free services for NGOs in Moscow has reached 12. All of them operate on the principle of a service department and provide organizations with free services: venues for events and meetings, printing of printed materials, information support and training for employees.

Pavilion No. 44 “Rabbit Breeding”

Pavilion No. 44 “Rabbit Breeding” is located in the north-eastern part of VDNKh, behind the Fourth Kamensky Pond at the address: Prospekt Mira, Building 119, Building 44.

In 1939, the building was located on the site of today’s building 41. Various breeds of rabbits bred in the Soviet Union were demonstrated here, and information was provided on how to increase the number of livestock and care for these animals.

The modern building was built for the opening of the All-Union Agricultural Exhibition in 1954. It is raised on a small stylobate with a central staircase, on the parapets of which decorative concrete vases are installed. The concave façade of the pavilion is divided by high niches. The two central ones are decorated with semicircular shell-shaped tops – a motif borrowed from the Renaissance. In these niches are installed two concrete sculptures of rabbit-breeding girls with rabbits in their arms, created according to the design of sculptors Nikolai Rozov and Zinaida Snigir. Of interest is the sculptural frieze at the top of the façade with images of rabbits and baby rabbits.

The pavilion was very popular with both rabbit breeders and young naturalists. In 1973, the space was expanded by adding an extension, which housed the “Fur Farming” exhibition. Until 1999, the pavilion operated for its intended purpose, but was later abandoned and fell into disrepair.

During the restoration of the facades, the figures of rabbits were recreated, and the statues of girls were put in order. Work on the return of two paired sculptures of rabbits standing on the corner parapets of the roof was carried out for six months.

The interior features restored columns and pilasters made of ossicle marble, stucco decoration of ceilings and capitals, and chandeliers made of artistic metal. The historical parquet was also recreated, using the surviving planks. The coffered ceiling of the exhibition hall was cleared of numerous paint layers, then specialists removed traces of leaks and completed the losses. In addition, the display windows on the side facades and the front door block were partially restored. In addition, during the work in pavilion No. 44, all engineering systems were updated, adapting the premises for modern use.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

Please Note; This Information is Raw Content Directly from the Information Source. It is access to What the Source Is Stating and Does Not Reflect

https: //vv.mos.ru/mayor/tkhemes/12321050/

MIL OSI Russia News –

January 28, 2025

MIL-OSI United Kingdom: Final permit consultation for Lower Hare Farm landfill, Devon

Source: United Kingdom – Executive Government & Departments

The Environment Agency has launched its final consultation today on a permit application to open a landfill site at Lower Hare Farm in Whitestone near Exeter.

The Environment Agency is ‘minded to’ issue a permit to operate a landfill based on information from previous consultations

GRS Stone Supplies Ltd needs an environmental permit from the Environment Agency to operate the proposed site. The company has provided all the information needed, and the Environment Agency is now likely to grant the permit, unless new information gives a reason not to.

Two previous consultations by the Environment Agency received a good deal of interest, resulting in the site being declared as one of “High Public Interest”.

An environmental permit sets the conditions which GRS Stone Supplies Ltd must meet when operating the landfill site. It covers the management and operation of the site and the control and monitoring of emissions.

When the Environment Agency considers a permit application, it reviews the design of the proposed site, how it will be operated, the emissions it will generate (to air, water and land) and whether it will meet the required standards. Partner organisations, including the UK Health Security Agency, are consulted as part of the process.

Issues such as suitability of the site, operating hours and traffic management to and from it, are matters for the planning authority, not the Environment Agency. The Environment Agency can only consider issues covered by the environmental permit and can only refuse a permit application based on technical information.

Once the consultation closes, all the comments received will be reviewed before a final decision is made. GRS Stone Supplies Ltd has the right to appeal if the permit is refused. The company will need to have both an environmental permit and planning permission in order to operate a landfill site.

Anyone wishing to comment on the application, can do so by using the online consultation portal, Citizen Space: https://consult.environment-agency.gov.uk/psc/ex4-2hw-grs-stone-supplies-limited-epr-lb3502ht-a

or by:

Email: pscpublicresponse@environment-agency.gov.uk

Post:

Environment Agency Permitting and Support Centre,
Land Team,
Quadrant 2,
99 Parkway Avenue,
Sheffield,
S9 4WF.

If you need help accessing this consultation in another format, please contact us by:

Email: DCISEnquiries@environment-agency.gov.uk
Phone: 03708 506 506

We may charge for copying costs.

Please use the application reference number, EPR/LB3502HT/A001. The consultation closes at 11.59pm on 10 March, 2025.

Published 28 January 2025

MIL OSI United Kingdom –

January 28, 2025

MIL-OSI Russia: “Winter in Moscow”: VDNKh became the venue for the “Moscow Tea Party” festival

Translartion. Region: Russians Fedetion –

Source: Moscow Government – Government of Moscow –

VDNKh has become one of the venues for the Moscow Tea Party festival, which is being organized as part of the project “Winter in Moscow”Ice shows, folk festivals and traditional Russian games will take place here.

On February 1 at 11:00 and 13:00 and on February 2 at 11:00, 13:00, 17:30 and 19:30, the largest skating rink in the capital will host a performance with the participation of professional figure skaters. Spectators will enjoy a festive atmosphere, bright costumes, dancing and familiar melodies. Entrance by tickets to the skating rink.

Throughout the winter season, the skating rink hosts master classes, competitions, costume parties, themed performances, morning exercises, night skating and other events.

On weekends until February 22, from 12:00 to 15:30, open-air folk festivities are held behind pavilion No. 58 “Agriculture”. The program includes musical and theatrical performances by artists, as well as Russian traditional games. Admission is free. On January 24, the program was opened by the folklore ensemble “Slavyane” of the Moscow State Academic Theater “Russian Song” under the direction of People’s Artist of Russia Nadezhda Babkina.

This year, the VDNKh skating rink is located in its traditional location — between pavilions No. 1 “Central” and No. 58 “Agriculture”. The ice rink goes around the fountains “Friendship of Peoples” and “Stone Flower”. The area of the artificial surface is more than 20 thousand square meters. About five thousand people can be here at the same time.

Project “Winter in Moscow”— the main event of the season, which until February 28 unites various events of the capital. Citizens and tourists are invited to remember traditions and history, warm up with tea and hot buns, go skating, skiing and tubing, watch ice shows, give gifts to people who find themselves in a difficult life situation, show care for those who need it.

Muscovites and guests of the capital are offered a huge selection of events in the open air and in cultural and sports institutions. The atmosphere of winter traditions has engulfed the entire city – more than 1.9 thousand sites are open. The project organically intertwined with the largest festivals of the capital “Moscow Estates”, “Moscow Tea Party”, “City of Light”, “Snow and Ice in Moscow” and many others. All information about the project and the events of the winter season can be found in a special section of mos.ru.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

Please Note; This Information is Raw Content Directly from the Information Source. It is access to What the Source Is Stating and Does Not Reflect

https: //vv.mos.ru/nevs/ite/149279073/

MIL OSI Russia News –

January 28, 2025

MIL-OSI China: Xi Story: Celebrating traditional new year with the people

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

BEIJING, Jan. 28 — Red lanterns swayed above doorways, their vibrant tassels dancing in the biting winter breeze. Inside the modest village homes, the warmth of friendship and tradition crackled like a well-tended hearth as families opened their doors to an unexpected guest: President Xi Jinping.

Xi traveled to Liaoning Province in northeast China last week, where he joined ordinary people in the traditions that define Spring Festival, the country’s most important holiday. He mingled with residents who were writing Spring Festival couplets, weaving intricate Chinese knots, and performing the spirited Yangge dance. Like millions across the country at this time of year, Xi threw himself into customs that have been cherished by generations.

Given its rich heritage, Spring Festival — the social practices of the Chinese people in celebration of the traditional new year — was acknowledged by UNESCO in December with its inscription on the Representative List of the Intangible Cultural Heritage of Humanity.

This year is not the first time that Xi has headed to the grassroots to join Spring Festival celebrations. Indeed, his pre-festival inspections have become a tradition in their own right, and provide a glimpse into the vibrant, diverse customs of the Chinese people.

DECORATION OF HOMES

Much like the people in the West who decorate their houses for Christmas, Chinese families prepare for the Spring Festival by cleaning and adorning their homes. The color red, symbolizing joy, enthusiasm and energy, fills every corner.

When Xi stopped by a traditional courtyard house in Beijing in the lead-up to the Spring Festival in 2019, he found the atrium bustling with neighbors who had come seeking Spring Festival couplets, known as “chunlian,” written by septuagenarian Hou Yaming.

People usually hang “chunlian” and the calligraphy “fu” on their gates. “Chunlian” features poetic lines that express good wishes and blessings, while the character “fu”, meaning “good fortune,” is traditionally handwritten on red, diamond-shaped paper.

Lanterns hung under the eaves, red paper-cuttings adorned the windows, and the air was filled with festive cheer. Xi joined in by picking up a large “fu” written in golden ink and pasting it on a door himself. “May everyone here always be happy.”

NEW YEAR GOODIES

Ahead of the Spring Festival, people typically stock up on food, gifts, new clothes, and firecrackers. In 2015, these preparations were particularly meaningful for Xi as he returned to Liangjiahe, a village in northwest China’s Shaanxi Province, where he had spent seven transformative years working the land as a young man.

For him, this visit was a heartfelt homecoming to the place that shaped his life and values.

That year, Xi brought with him a bounty of new year essentials including flour, rice, oil, meat products, and Spring Festival couplets and paintings. As he handed out his gifts, his thoughts returned to the immense care and love he had received during his time living and working in the village.

“I will never forget Liangjiahe,” he said, “the villagers here, and the people in the old revolutionary base.” Xi’s gifts to the villagers are not mere common new year goodies, but rather a symbol of the bonds between him and the people.

FESTIVE FOODS

Homemade dishes and treats are a hallmark of the Spring Festival, embodying family prosperity, good fortune and reunion. The variety of festive foods highlights the diversity of Chinese culture.

During a visit to another family in Beijing in 2019, Xi joined them in making fennel jiaozi (dumplings). “My family prefers the fennel filling too,” he shared as he deftly encased the filling with the dough into shapes resembling ancient silver ingots. “I haven’t made them in years due to my schedule, but you see — the more I make, the better I get at it. As is life.”

For the people of Shenshan, a mountainous village in east China’s Jiangxi Province, the season is marked by the busy preparation of glutinous rice cakes known as ciba.

Xi had the opportunity to try his hand at making this local speciality in the run-up to the Spring Festival in 2016. After joining villagers in pounding the rice with a mallet for a while, Xi joked that doing so for 10 minutes each day could be a good workout.

CELEBRATIONS

The Spring Festival is a celebration brimming with joy and energy. Temple fairs, much like carnivals, offer a cornucopia of traditional snacks, toys and entertainment. Streets and squares come alive as stilt walkers, dragon dances and lion dances captivate onlookers.

As Xi departed from a recently renovated residential community in Shenyang, Liaoning, on Thursday, residents performed a local Yangge dance in a unique goodbye gesture.

Yangge dance is believed to have originated in the ancient fields, with farmers singing to ease the strain of their toil. Today, people perform it in both villages and towns to express their joy and hope for a better life.

Dressed in richly-colored costume, residents of the Chang’an apartment complex danced with red fans in hand, moving to the lively rhythms of gongs, drums, and suona horns.

HOME IS WHERE THE HEART IS

Family reunion lies at the heart of the Spring Festival. Each year, hundreds of millions of travelers hit the road around this time to celebrate the occasion with their families, a phenomenon known as chunyun, the largest annual migration of people on the planet.

Ahead of the Spring Festival in 2013, Xi visited steel bar setter Fan Yong at a temporary home provided by his employer at a subway construction site in Beijing. Fan had chosen to stay and work rather than return home for the festival, and his wife and children joined him in the city.

Xi took stock of their living conditions and spoke highly of the invaluable role migrant workers like Fan play in the country. “It was not easy to make the trip to Beijing. Take some time to explore the city and enjoy a happy reunion,” he told the family.

For Xi, a wonderful Spring Festival marks a good start to the new year. “When every household is filled with happiness and people of all ages are celebrating, that is true beauty.”

MIL OSI China News –

January 28, 2025

MIL-OSI Australia: 23-2025: Scheduled Outage: Saturday 01 February to Sunday 02 February 2025 – DAFF messaging, SeaPest

Source: Australia Government Statements – Agriculture

28 January 2025

Who does this notice affect?

All users of the Seasonal Pests (SeaPest) system.

All clients submitting the below declarations:

Full Import Declaration (FID)
Long Form Self Assessed Clearance (LFSAC)
Short Form Self Assessed Clearance (SFSAC)
Cargo Report Self Assessed Clearance (CRSAC)
Cargo Report Personal Effects (PE)

Information

Due to scheduled infrastructure maintenance at the Department of…

MIL OSI News –

January 28, 2025

MIL-OSI Australia: 22-2025: List of treatment providers: treatment provider suspended – Western Fumigation (Pennsylvania) (AEI: US4008SB)

Source: Australia Government Statements – Agriculture

28 January 2025

Who does this notice affect?

Stakeholders in the import and shipping industries—including vessel masters, freight forwarders, offshore treatment providers, Biosecurity Industry Participants, importers, customs brokers, principal agents and master consolidators.

What has changed?

Following identification of critical non-compliance, we have suspended Western Fumigation (Pennsylvania) (AEI: US4008SB) from AusTreat.

The treatment provider has…

MIL OSI News –

January 28, 2025

MIL-OSI China: Shawo radish industry fuels rural revitalization in N. China

Source: China State Council Information Office

Hao Lihong, general manager of Guli farm, an agricultural supply chain cooperative in north China’s Tianjin Municipality, shows the growth of Shawo radishes in Tianjin, north China, Jan. 3, 2025. (Xinhua/Song Rui)

Rows of green Shawo radishes are growing well in a technology demonstration base covering an area of around 50 mu (about 3.33 hectares) in the suburb of north China’s Tianjin Municipality.

It is currently the peak sales season for Shawo radishes, and most of the radishes in the greenhouses at the base are in cold storage, waiting to be distributed nationwide.

“Via the Internet of Things and sensors in the greenhouses, the amount of watering, the temperature, humidity and light can be managed intelligently, increasing the quality of the radishes. The process of growing the radishes including seed selection, planting and maintenance is recorded in the smart system,” said Hao Lihong, general manager of Guli farm, an agricultural supply chain cooperative in Tianjin.

Hao said that the smart planting technology would soon be introduced to more than 10 greenhouses in the area — allowing local farmers to plant in an automated way by using mobile phones.

The Shawo radish is named after its growth localities in Xiaoshawo Village and Dashawo Village in Xinkou Town, Tianjin’s Xiqing District. Local Shawo radish growing dates back more than 300 years. The soil in these areas is sandy near the surface and sticky deeper down — making radishes grown there both crisp and sweet.

In 2024, in order to promote the development of the Shawo radish industry, the district government made a plan and cooperated with towns, villages and enterprises to produce a well-known Shawo radish brand.

“In the past, the radish planting here lacked both scale and standardization. The production facilities were old, while seeds were not standard. The taste of radishes grown by different people was different, which restricted the brand-inheritance potential of the Shawo radish,” Hao said.

Notably, Guli farm and Dashawo Village have strengthened their cooperation efforts since last year. More than 300 contracted farmers have enjoyed technical training and guidance from experts with Tianjin Academy of Agriculture Sciences. They also did not need to find the sales channels by themselves, but instead sold radishes directly to Guli farm.

Thanks to this cooperation model, Sun Guoqiang, a 62-year-old living in Dashawo Village, has benefited a lot. “The peak sales season for Shawo radishes is from December to February of the following year. By the end of 2024, all 25,000 kilograms of Shawo radishes in my five greenhouses had been purchased by Guli farm, earning me roughly 100,000 yuan (about 13,638 U.S. dollars),” Sun said.

The price of the radishes has more than doubled compared with 2023, and Sun plans to expand his planting area this year to make even more money.

In recent years, marketing activities to promote the Shawo radish brand have been implemented, boosting sales. In addition, a special promotion meeting focused on the Shawo radish was held in Beijing, while many Chinese cities including Changsha, Hangzhou and Guangzhou hosted exhibitions, where visitors could get a closer look at this special radish variety. Online and offline sales channels for this brand have been expanded recently, serving as another boost for the Shawo radish industry.

“In 2024, we made a lot of efforts to expand the sales chain of Shawo radishes, and enhance their popularity and reputation through brand building and cultural tourism activities,” Hao said.

This year, the company will cooperate with enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area to help farmers sell Shawo radishes to buyers in Hong Kong and Macao, Hao added.

The Shawo radish industry has had a significant impact on Xinkou Town, boosting rural revitalization there.

At present, the town has planted Shawo radishes across an area of about 7,000 mu — which is expected to yield an estimated output of around 32.5 million kilograms and an estimated sales value of 250 million yuan.

According to Zhao Jun, the town’s Party secretary, the town plans to expand the cultivation scale of Shawo radishes and strengthen the development of both deep processing of agricultural products and tourism, adding that they would also try to make the Shawo radish industry a good model of rural revitalization by continuously extending the industry chain and strengthening the Shawo radish brand.

MIL OSI China News –

January 28, 2025

MIL-OSI New Zealand: ChildFund – Make the Case for Aid or Have It taken away

Source: ChildFund New Zealand

President Trump has issued an immediate stop-work order for all USA funded aid projects to align aid budgets with his foreign policy agenda.

This will cause chaos and suffering across the world, and will impact on some ChildFund New Zealand programmes and partners, says CEO of ChildFund NZ, Josie Pagani.

“It isn’t just USA aid programmes that are impacted – it’s any charity or donor who is working on a joint project with USA funding.”

ChildFund New Zealand is working with its ChildFund partner in America, to support food security and clean water projects in places like Kenya and Sri Lanka.

“With our USA partner we know we reach about 15,000 people in the vulnerable district of Batticaloa in Sri Lanka with nutritious food by supporting small-holder farmers. We know that we get clean water and good food to thousands of people who otherwise would not have it in countries like Kenya. We also know that 10,000 children in Sri Lanka are getting access to education through digital hubs, as well as thousands of children in Zambia, who otherwise would not have access to education.”

“All of that is at risk with this stop-work order.”

“We have been told that all US Aid funded projects have three months to evaluate each program based on three criteria:

Does the action make America safe?
Does it make America stronger?
Does it make America more prosperous?

“We welcome challenges about the effectiveness of aid. We should always hold ourselves accountable for success or failure when it comes to saving and improving the lives of people in some of the most vulnerable, war-torn or poorest places in the world.

New Zealand’s Minister of Foreign Affairs Winston Peters is in the process of reviewing New Zealand’s aid, and we welcome the review.

“But President Trump and Secretary of State, Marco Rubio are asking the wrong questions.”

“Aid is not there to make the donor countries rich or prosperous. There are better ways to do that.

The Focus of aid is to save lives, to lift children and communities out of extreme poverty, to stop people dying of preventable diseases, and to make sure every child and person has access to clean water and nutritious food, wherever they live.

Reducing the acute suffering of many millions of people reduces the likelihood of war, terrorism and political destabilisation. There is no doubt that effective aid programmes make us all safer.

The questions President Trump’s administration should be asking are:

Are we making a difference with aid?
Are local communities and institutions strong enough to continue the work after we leave?
Are we helping to make the poorest places less dependent on aid, and ultimately more prosperous?

“At ChildFund New Zealand that is the standard by which we measure our work. We ask ourselves these questions all the time. If the answer is no, we adapt, change what we’re doing and sometimes stop.”

“If we are achieving those goals, to answer President Trump’s questions, we can say ‘yes, we are helping to make New Zealand and our Pacific region a safer and stronger place’,” says Josie Pagani.

These are tough times and funding from all sources is at risk. Please help us continue the life-saving work we do by donating here: https://childfund.org.nz/?form=FUNFFXFVGBY

MIL OSI New Zealand News –

January 28, 2025

MIL-OSI Australia: 21-2025: Scheduled Outage: Friday 31 January 2025 – AAMP

Source: Australia Government Statements – Agriculture

28 January 2025

Who does this notice affect?

Approved arrangements operators who will be required to view and/or update details of their Approved Arrangement via the Approved Arrangement Management Product (AAMP).

Information

Due to scheduled system maintenance, AAMP will be unavailable between 20:00 to 23:30 Friday 31 January 2025 (AEDT).

Action

Clients are advised to await the completion of this maintenance period before attempting to access this…

MIL OSI News –

January 28, 2025

MIL-OSI New Zealand: PM emphasises importance of growth in 2025

Source: New Zealand Government

For the Government, 2025 will bring a relentless focus on unleashing the growth we need to lift incomes, strengthen local businesses and create opportunity.
Prime Minister Christopher Luxon today laid out the Government’s growth agenda in his Statement to Parliament.
“Just over a year ago this Government was elected by the people of New Zealand with a mandate to change course. Since then, we have made big changes and we are seeing promising signs of success, with inflation dropping and remaining low, interest rates starting to fall, and wages continuing to rise,” Mr Luxon says.
“Business and consumer confidence is rising and average mortgage interest rates have now fallen for the first time in more than three years. Wages are rising faster than inflation, supporting a recovery in household incomes. Growth is also expected to resume, reaching 2.1 per cent in 2025 according to Treasury’s latest forecasts in the Half Year Economic and Fiscal Update.
“We need to act now to strengthen growth and productivity – both in the very near term and over the years to come.
“In 2025, we will take action to end the culture of no – whether that’s through Fast Track, comprehensive RMA reform, rewriting our health and safety laws, enabling more mining, allowing our farmers to grow their businesses with much less red tape, or other changes designed to promote more growth and investment.
“In this Government’s first year in office we made tough decisions to ease the cost of living and laid the foundations for a stronger economy, rising incomes and more opportunities for New Zealanders to get ahead.
“This year we will continue to build on this early progress to make sure these green shoots of recovery grow into lasting improvements that benefit all New Zealanders,” Mr Luxon says.

MIL OSI New Zealand News –

January 28, 2025

MIL-OSI Australia: 19-2025: Further Information Regarding Changes to Import Conditions for New and Aged/Used Oversize Tyres

Source: Australia Government Statements – Agriculture

28 January 2025

Who does this notice affect?

This notice is of relevance to importers, manufacturers, customs brokers, agents and associated biosecurity industry participants involved in the importation of new and aged/used oversize tyres.

What has changed?

As per import industry advice notice…

MIL OSI News –

January 28, 2025

MIL-OSI Australia: 20-2025: Services Restored: Tuesday 28 January 2025 – BICON external website

Source: Australia Government Statements – Agriculture

28 January 2025

Who does this notice affect?

All clients required to use the department’s Biosecurity Import Conditions System (BICON) – external website.

Information

Between 10:06 and 10:53 on Tuesday 28 January 2025 (AEDT) the BICON external website was experiencing an unplanned outage.

This issue has since been resolved, and BICON external website users can now access these services as normal.

Action

No action required. The department…

MIL OSI News –

January 28, 2025

MIL-Evening Report: What’s the difference between a food allergy and an intolerance?

Source: The Conversation (Au and NZ) – By Jennifer Koplin, Group Leader, Childhood Allergy & Epidemiology, The University of Queensland

Feel good studio/Shutterstock

At one time or another, you’ve probably come across someone who is lactose intolerant and might experience some unpleasant gut symptoms if they have dairy. Maybe it’s you – food intolerances are estimated to affect up to 25% of Australians.

Meanwhile, cow’s milk allergy is one of the most common food allergies in infants and young children, affecting around one in 100 infants.

But what’s the difference between food allergies and food intolerances? While they might seem alike, there are some fundamental differences between the two.

What is an allergy?

Australia has one of the highest rates of food allergies in the world. Food allergies can develop at any age but are more common in children, affecting more than 10% of one-year-olds and 6% of children at age ten.

A food allergy happens when the body’s immune system mistakenly reacts to certain foods as if they were dangerous. The most common foods that trigger allergies include eggs, peanuts and other nuts, milk, shellfish, fish, soy and wheat.

Mild to moderate signs of food allergy include a swollen face, lips or eyes; hives or welts on your skin; or vomiting. A severe allergic reaction (called anaphylaxis) can cause trouble breathing, persistent dizziness or collapse.

What is an intolerance?

Food intolerances (sometimes called non-allergic reactions) are also reactions to food, but they don’t involve your immune system.

For example, lactose intolerance is a metabolic condition that happens when the body doesn’t produce enough lactase. This enzyme is needed to break down the lactose (a type of sugar) in dairy products.

Food intolerances can also include reactions to natural chemicals in foods (such as salicylates, found in some fruits, vegetables, herbs and spices) and problems with artificial preservatives or flavour enhancers.

Lactose intolerance is caused by a problem with breaking down lactose in milk.
Pormezz/Shutterstock

Symptoms of food intolerances can include an upset stomach, headaches and fatigue, among others.

Food intolerances don’t cause life-threatening reactions (anaphylaxis) so are less dangerous than allergies in the short term, although they can cause problems in the longer term such as malnutrition.

We don’t know a lot about how common food intolerances are, but they appear to be more commonly reported than allergies. They can develop at any age.

It can be confusing

Some foods, such as peanuts and tree nuts, are more often associated with allergy. Other foods or ingredients, such as caffeine, are more often associated with intolerance.

Meanwhile, certain foods, such as cow’s milk and wheat or gluten (a protein found in wheat, rye and barley), can cause both allergic and non-allergic reactions in different people. But these reactions, even when they’re caused by the same foods, are quite different.

For example, children with a cow’s milk allergy can react to very small amounts of milk, and serious reactions (such as throat swelling or difficulty breathing) can happen within minutes. Conversely, many people with lactose intolerance can tolerate small amounts of lactose without symptoms.

There are other differences too. Cow’s milk allergy is more common in children, though many infants will grow out of this allergy during childhood.

Lactose intolerance is more common in adults, but can also sometimes be temporary. One type of lactose intolerance, secondary lactase deficiency, can be caused by damage to the gut after infection or with medication use (such as antibiotics or cancer treatment). This can go away by itself when the underlying condition resolves or the person stops using the relevant medication.

Whether an allergy or intolerance is likely to be lifelong depends on the food and the reason that the child or adult is reacting to it.

Allergies to some foods, such as milk, egg, wheat and soy, often resolve during childhood, whereas allergies to nuts, fish or shellfish, often (but not always) persist into adulthood. We don’t know much about how likely children are to grow out of different types of food intolerances.

How do you find out what’s wrong?

If you think you may have a food allergy or intolerance, see a doctor.

Allergy tests help doctors find out which foods might be causing your allergic reactions (but can’t diagnose food intolerances). There are two common types: skin prick tests and blood tests.

In a skin prick test, doctors put tiny amounts of allergens (the things that can cause allergies) on your skin and make small pricks to see if your body reacts.

A blood test checks for allergen-specific immunoglobulin E (IgE) antibodies in your blood that show if you might be allergic to a particular food.

Blood tests can help diagnose allergies.
RossHelen/Shutterstock

Food intolerances can be tricky to figure out because the symptoms depend on what foods you eat and how much. To diagnose them, doctors look at your health history, and may do some tests (such as a breath test). They may ask you to keep a record of foods you eat and timing of symptoms.

A temporary elimination diet, where you stop eating certain foods, can also help to work out which foods you might be intolerant to. But this should only be done with the help of a doctor or dietitian, because eliminating particular foods can lead to nutritional deficiencies, especially in children.

Is there a cure?

There’s currently no cure for food allergies or intolerances. For allergies in particular, it’s important to strictly avoid allergens. This means reading food labels carefully and being vigilant when eating out.

However, researchers are studying a treatment called oral immunotherapy, which may help some people with food allergies become less sensitive to certain foods.

Whether you have a food allergy or intolerance, your doctor or dietitian can help you to make sure you’re eating the right foods.

Victoria Gibson, a Higher Degree by Research student and Research Officer at the School of Nursing, Midwifery and Social Work at the University of Queensland, and Rani Scott-Farmer, a Senior Research Assistant at the University of Queensland, contributed to this article.

Jennifer Koplin receives funding from the National Health and Medical Research Council of Australia. She is a member of the Executive Committee for the National Allergy Centre of Excellence (NACE), which is supported by funding from the Australian government. She was a named investigator on a grant from Sanofi Regeneron for unrelated research and has received a research award from the Stallergenes Greer Foundation.

Desalegn Markos Shifti is supported by a Postdoctoral Fellowship funded through the Centre for Food Allergy Research Centre of Research Excellence.

– ref. What’s the difference between a food allergy and an intolerance? – https://theconversation.com/whats-the-difference-between-a-food-allergy-and-an-intolerance-243685

MIL OSI Analysis – EveningReport.nz –

January 28, 2025

MIL-OSI USA: Ernst Names Small Business of the Week, Myers Tree Farm

US Senate News:

Source: United States Senator Joni Ernst (R-IA)
RED OAK, Iowa – U.S. Senator Joni Ernst (R-Iowa), Chair of the Senate Committee on Small Business and Entrepreneurship, today announced her Small Business of the Week: Myers Tree Farm of Des Moines County. Throughout the 119th Congress, Chair Ernst plans to recognize a small business in every one of Iowa’s 99 counties.
“For over 35 years, Myers Tree Farm has rooted itself in the Sperry community, sprucing things up with their variety of houseplants, succulents, and home decor,” said Chair Ernst. “Home to over 5,000 Christmas trees, this family-owned and operated small business continues to bring holiday joy to families across Iowa!”
In 1987, Robert and Patti Myers planted a group of Christmas trees on an acre of land in hopes to sell them and pay for their kids college education. After Chad graduated from Iowa State University in 1993 with a degree in horticulture, he joined the business full-time and eventually took over with his wife. The couple expanded Myers Tree Farm to include full-service landscaping and a potting shed that houses flowers, garden and vegetable plants, and succulents. In 2019, the Myerses fully renovated their barn to host weddings ceremonies. The business hosts an annual Fourth of July fireworks celebration that attracts over 5,000 people to the family farm. This year, Myers Tree Farm will celebrate 38 years in Iowa.
Stay tuned as Chair Ernst recognizes more Iowa small businesses across the state with her Small Business of the Week award.

MIL OSI USA News –

January 28, 2025

MIL-OSI USA: SCHUMER: STANDING AT ALTON’S RESTAURANT IN CHEEKTOWAGA WITH EGG & GROCERY PRICES RISING DUE TO BIRD FLU OUTBREAK CALLS ON FEDS TO SURGE ‘BIOSECURITY’ AND GET ALL HANDS ON DECK TO HELP FARMS CONTAIN…

US Senate News:

Source: United States Senator for New York Charles E Schumer
Schumer Says Egg Prices Already Increased $2 Per Dozen In Last Two Months And Could Get Worse If New Admin Doesn’t Surge Efforts To Beat Bird Flu; Farmers Do Not Have Resources To Contain Bird Flu Alone, Says Feds Must Ramp Up Efforts NOW Before Prices Climb Higher
With Millions Of Birds Impacted Last Month, And More Bird Flu Being Found In NY Just Last Week, Schumer Says Biosecurity And Increased Fed Response Is Key To Isolate & Contain Bird Flu And Lower Grocery Costs
Schumer: With New Admin, We Can’t Afford To Scramble To Keep Bird Flu Mitigation Going—Or Egg & All Grocery Prices Could Surge
Amid the increasing price of eggs in Western NY and across Upstate New York amid the bird flu outbreak, U.S. Senator Chuck Schumer today stood at Cheektowaga’s beloved Alton’s Restaurant and called on HHS and the USDA to surge funding and get all hands on deck for coordinated federal response to stop the spread causing sky-rocketing egg prices and lower costs for families, diners, and local bakeries.
“Alton’s has been a staple in Western New York for over 40 years, but recently restaurants like Alton’s and families in Buffalo have been shell-shocked by higher egg and grocery prices. Egg prices are skyrocketing because of bird flu, driving costs up for families, farms, diners, and small businesses. In November, a dozen eggs cost about $4 in NY which is already high, but now the average is nearly $6, and with bird flu getting worse this problem could quickly spiral into a crisis,” said Senator Schumer. “Last year I secured millions to help contain this disease and we need the new administration to surge biosecurity efforts to beat back bird flu. We need a robust, coordinated federal response to crack down on bird flu and I am committed to working in a bipartisan way with the new administration to get grocery prices lower and that starts with getting a handle on bird flu. The health of our livestock, our restaurants, and Western NY families’ wallets depend on it.”
For decades, Alton’s has been a beloved cornerstone of Western New York’s culinary scene, serving hearty Greek-American comfort food for breakfast, lunch, and dinner. Since opening its doors in 1982, the Cheektowaga-based restaurant, owned by Milton Koutsandreas, has built a loyal following with its warm atmosphere and home-cooked meals. However, like many local businesses across the region, Alton’s has felt the strain of rising costs, particularly the significant increase in egg prices. Just a few months ago they were able to get 30 dozen eggs for $50 a case, and now the diner is seeing prices climb to $180 a case.
Some grocery stores are limiting the number of egg cartons consumers can purchase, and the price of eggs in New York State has increased from $4.23 in November to $6.10 as of January 10 according to the U.S. Department of Agriculture. Roughly 8% of egg supply has been affected by the avian flu nationwide, and experts say prices could increase an additional 20% in 2025 if the bird flu keeps spreading.
Schumer added, “I’ll be pushing for more federal resources in the upcoming budget bill to stop the bird flu, and the feds need to continue prioritizing biosecurity, get all hands on deck for containing bird flu. This will give farmers the resources to isolate, sanitize, and purchase the protective equipment they need.”
More than 20 million egg-laying chickens died last quarter because of bird flu, and last week Long Island’s last commercial duck farm was forced to kill thousands of ducks after health officials detected cases of bird flu, forcing the farm to cease operations. An outbreak in Georgia last week showed how the virus can spread, and Schumer highlighted the need for federal coordination to prevent further spread and support farms in New York and across the country. With infections across the country, there have been fewer eggs available, and decreased supply has led to increasing prices at grocery stores.
“As a restaurant manager, I know firsthand how crucial affordable ingredients are to keeping our business running and our customers happy. Eggs are a staple in so many of the dishes we serve, and rising prices significantly affect our costs and prices – something we always try to avoid,” said Alton’s Restaurant General Manager Audrea Arricale. “I want to thank Senator Chuck Schumer for taking the issue of excessively high food costs seriously.”
“Stable egg prices are critical for the success of Cheektowaga’s local businesses, especially restaurants and grocery stores, which are already navigating the challenges of inflation,” said Cheektowaga Chamber of Commerce President and CEO James Burns. “Senator Schumer’s push to strengthen biosecurity and support farmers in fighting bird flu is essential to keeping costs down for both businesses and families in our community.”
“I thank Senator Schumer for standing up for basic, common sense public health efforts. As the COVID-19 pandemic showed, we need everyone, from global partners and academia to local health departments in the fight together against illnesses like H5N1 highly pathogenic avian flu, which is a looming threat to the public’s health, our economy and our food security,” said Erie County Executive Mark Poloncarz.
“I thank Senator Schumer for his efforts to advance a practical solution to an issue that has a concrete impact on all of us. Resources are already in the federal budget and should be expended to address the issue,” said Cheektowaga Town Supervisor Brian Nowak.
Schumer said that the federal government must invest in biosecurity efforts including isolation, sanitation, and more personal protective equipment (PPE). The senator called on the U.S. Department of Agriculture (USDA), U.S. Department of Health and Human Services (HHS), Centers for Disease Control and Prevention, and National Institutes of Health, among other federal agencies, to engage in a coordinated federal response to manage this bird flu outbreak. HHS invested $300+ million dollars before the new administration took office and the USDA has said that preparedness is the key to keeping Americans healthy and our country safe. Schumer said that as Congress continues to negotiate the Farm Bill, which regulates the federal budget for agricultural-related programs, the new Congress and the new administration must continue to prioritize investing in helping farms detect and contain bird flu.
“The bottom-line here is that we do not want farmers, the feds, or consumers at the grocery store to scramble with this threat of bird flu sustaining into 2025. We want to try and keep grocery prices in check, and that means keeping the new Congress and the new administration laser-focused on ending this latest bird flu outbreak,” said Schumer.
Under the Biden administration, the CDC made plans to award approximately $111 million in funding to enhance our ability to monitor the bird flu at the local, state and national levels, including $103 million to increase monitoring of individuals exposed to infected animals, testing, and outreach to high-risk populations (such as livestock workers) and $8 million to manufacture, store, and distribute influenza diagnostic test kits for virologic surveillance. The NIH made plans to award approximately $11 million in funding for additional research into potential medical countermeasures for the bird flu.

MIL OSI USA News –

January 28, 2025

MIL-OSI USA: SCHUMER: STANDING AT ROCHESTER’S JINES RESTAURANT WITH EGG & GROCERY PRICES RISING DUE TO BIRD FLU OUTBREAK CALLS ON FEDS TO SURGE ‘BIOSECURITY’ AND GET ALL HANDS ON DECK TO HELP FARMS CONTAIN BIRD…

US Senate News:

Source: United States Senator for New York Charles E Schumer
Schumer Says Egg Prices Already Increased $2 Per Dozen In Last Two Months And Could Get Worse If New Admin Doesn’t Surge Efforts To Beat Bird Flu; Farmers Do Not Have Resources To Contain Bird Flu Alone, Says Feds Must Ramp Up Efforts NOW Before Prices Climb Higher
With Millions Of Birds Impacted Last Month, And More Bird Flu Being Found In NY Just Last Week, Schumer Says Biosecurity And Increased Fed Response Is Key To Isolate & Contain Bird Flu And Lower Grocery Costs
Schumer: With New Admin, We Can’t Afford To Scramble To Keep Bird Flu Mitigation Going—Or Egg & All Grocery Prices Could Surge
Amid the increasing price of eggs in the Rochester-Finger Lakes region and across Upstate New York, U.S. Senator Chuck Schumer today stood at Rochester’s beloved Jines Restaurant and called on HHS and the USDA to surge funding and get all hands on deck for coordinated federal response to stop the spread causing sky-rocketing egg prices and lower costs for families, diners, and local bakeries.
“Everyone in Rochester has eaten at Jines at some point, but diners like Jines and families in Rochester have been shell-shocked by higher egg and grocery prices. Egg prices are skyrocketing because of bird flu, driving costs up for families, farms, diners, and small businesses. In November, a dozen eggs cost about $4 in NY which is already high, but now the average is nearly $6, and with bird flu getting worse this problem could quickly spiral into a crisis,” said Senator Schumer. “Last year I secured millions to help contain this disease and we need the new administration to surge biosecurity efforts to beat back bird flu. We need a robust, coordinated federal response to crack down on bird flu and I am committed to working in a bipartisan way with the new administration to get grocery prices lower and that starts with getting a handle on bird flu. The health of our livestock, our restaurants, and Rochester families’ wallets depend on it.”
Jines Restaurant serves thousands of eggs per week, and says the cost of egg cases has increased at unprecedented rates since the start of the avian flu. The restaurant is used to a dozen eggs costing $1.50 a dozen, but now sees prices at $6.50 a dozen and above. With the price of eggs continuing to rise steeply in Rochester and across the country, local diners like Jines are being forced to decide between absorbing the costs and raising prices for customers.
Some grocery stores are limiting the number of egg cartons consumers can purchase, and the price of eggs in New York State has increased from $4.23 in November to $6.10 as of January 10 according to the U.S. Department of Agriculture. Roughly 8% of egg supply has been affected by the avian flu nationwide, and experts say prices could increase an additional 20% in 2025 if the bird flu keeps spreading.
Schumer added, “I’ll be pushing for more federal resources in the upcoming budget bill to stop the bird flu, and the feds need to continue prioritizing biosecurity, get all hands on deck for containing bird flu. This will give farmers the resources to isolate, sanitize, and purchase the protective equipment they need.”
More than 20 million egg-laying chickens died last quarter because of bird flu, and last week Long Island’s last commercial duck farm was forced to kill thousands of ducks after health officials detected cases of bird flu, forcing the farm to cease operations. An outbreak in Georgia last week showed how the virus can spread, and Schumer highlighted the need for federal coordination to prevent further spread and support farms in New York and across the country. With infections across the country, there have been fewer eggs available, and decreased supply has led to increasing prices at grocery stores.
Peter Gines, Jines Restaurant Owner said, “Eggs are used in nearly every dish that we serve and when you need thousands of eggs a week, every cost increase multiplies quickly. As a small business owner, and on behalf of our employees and customers, we appreciate Senator Schumer’s attention to addressing this issue.”
Schumer said that the federal government must invest in biosecurity efforts including isolation, sanitation, and more personal protective equipment (PPE). The senator called on the U.S. Department of Agriculture (USDA), U.S. Department of Health and Human Services (HHS), Centers for Disease Control and Prevention, and National Institutes of Health, among other federal agencies, to engage in a coordinated federal response to manage this bird flu outbreak. HHS invested $300+ million dollars before the new administration took office and the USDA has said that preparedness is the key to keeping Americans healthy and our country safe. Schumer said that as Congress continues to negotiate the Farm Bill, which regulates the federal budget for agricultural-related programs, the new Congress and the new administration must continue to prioritize investing in helping farms detect and contain bird flu.
“The bottom-line here is that we do not want farmers, the feds, or consumers at the grocery store to scramble with this threat of bird flu sustaining into 2025. We want to try and keep grocery prices in check, and that means keeping the new Congress and the new administration laser-focused on ending this latest bird flu outbreak,” said Schumer.
Under the Biden administration, the CDC made plans to award approximately $111 million in funding to enhance our ability to monitor the bird flu at the local, state and national levels, including $103 million to increase monitoring of individuals exposed to infected animals, testing, and outreach to high-risk populations (such as livestock workers) and $8 million to manufacture, store, and distribute influenza diagnostic test kits for virologic surveillance. The NIH made plans to award approximately $11 million in funding for additional research into potential medical countermeasures for the bird flu.

MIL OSI USA News –

January 28, 2025

MIL-OSI: SOUTHERN MISSOURI BANCORP REPORTS PRELIMINARY RESULTS FOR SECOND QUARTER OF FISCAL 2025; DECLARES QUARTERLY DIVIDEND OF $0.23 PER COMMON SHARE; CONFERENCE CALL SCHEDULED FOR TUESDAY, JANUARY 28, AT 9:30 AM CENTRAL TIME

Source: GlobeNewswire (MIL-OSI)

Poplar Bluff, Missouri, Jan. 27, 2025 (GLOBE NEWSWIRE) —

Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the second quarter of fiscal 2025 of $14.7 million, an increase of $2.5 million, or 20.2%, as compared to the same period of the prior fiscal year. The increase was attributable to increases in net interest income and noninterest income, partially offset by increases in noninterest expense, income taxes, and provision for credit losses. Preliminary net income was $1.30 per fully diluted common share for the second quarter of fiscal 2025, an increase of $0.23 as compared to the $1.07 per fully diluted common share reported for the same period of the prior fiscal year.

Highlights for the second quarter of fiscal 2025:

Earnings per common share (diluted) were $1.30, up $0.23, or 21.5%, as compared to the same quarter a year ago, and up $0.20, or 18.2% from the first quarter of fiscal 2025, the linked quarter.
Annualized return on average assets (“ROAA”) was 1.21%, while annualized return on average common equity was 11.5%, as compared to 1.07% and 10.6%, respectively, in the same quarter a year ago, and 1.07% and 10.0%, respectively, in the first quarter of fiscal 2025, the linked quarter.
Net interest margin for the quarter was 3.36%, as compared to 3.25% reported for the year ago period, and 3.37% reported for the first quarter of fiscal 2025, the linked quarter. Net interest income increased $3.7 million, or 10.6% compared to the same quarter a year ago, and increased $1.5 million, or 4.0%, from the first quarter of fiscal 2025, the linked quarter.
Noninterest income was up 21.7% for the quarter, as compared to the same quarter a year ago, primarily as a result of losses realized on sale of available-for-sale (AFS) securities in the prior comparable quarter, and down 4.3% from the first quarter of fiscal 2025, the linked quarter.
Gross loan balances as of December 31, 2024, increased by $60.5 million, or 1.5%, as compared to September 30, 2024, and by $295.1 million, or 7.9%, as compared to December 31, 2023.
Cash equivalent balances as of December 31, 2024, increased by $70.5 million as compared to September 30, 2024, but decreased by $71.0 million as compared to December 31, 2023.
Deposit balances increased by $170.5 million, or 4.2%, as compared to September 30, 2024, and by $225.1 million, or 5.6%, as compared to December 31, 2023. The increase compared to the linked quarter was primarily due to seasonal inflows of deposits from agricultural and public unit depositors.
Tangible book value per share was $38.91, having increased by $4.26, or 12.3%, as compared to December 31, 2023.
The current period effective tax rate was 23.7%, as compared to 20.6% in the same quarter of the prior fiscal year. The effective tax rate for the December 31, 2024, quarter was elevated due a $380,000 adjustment of tax accruals attributable to completed merger activity.

Dividend Declared:

The Board of Directors, on January 21, 2025, declared a quarterly cash dividend on common stock of $0.23, payable February 28, 2025, to stockholders of record at the close of business on February 14, 2025, marking the 123rd consecutive quarterly dividend since the inception of the Company. The Board of Directors and management believe the payment of a quarterly cash dividend enhances stockholder value and demonstrates our commitment to and confidence in our future prospects.

Conference Call:

The Company will host a conference call to review the information provided in this press release on Tuesday, January 28, 2025, at 9:30 a.m., central time. The call will be available live to interested parties by calling 1-833-470-1428 in the United States and from all other locations. Participants should use participant access code 230612. Telephone playback will be available beginning one hour following the conclusion of the call through February 1, 2025. The playback may be accessed by dialing 1-866-813-9403, and using the conference passcode 279309.

Balance Sheet Summary:

The Company experienced balance sheet growth in the first six months of fiscal 2025, with total assets of $4.9 billion at December 31, 2024, reflecting an increase of $303.4 million, or 6.6%, as compared to June 30, 2024. Growth primarily reflected increases in net loans receivable, cash and cash equivalents, and AFS securities.

Cash and cash equivalents were a combined $146.1 million at December 31, 2024, an increase of $84.7 million, or 137.9%, as compared to June 30, 2024. The increase was primarily the result of strong deposit generation that outpaced loan growth and AFS securities purchases during the period. AFS securities were $468.1 million at December 31, 2024, up $40.2 million, or 9.4%, as compared to June 30, 2024.

Loans, net of the allowance for credit losses (ACL), were $4.0 billion at December 31, 2024, increasing by $175.0 million, or 4.6%, as compared to June 30, 2024. The Company noted growth primarily in drawn construction, 1-4 family residential, commercial and industrial, agricultural production loan draws, owner occupied commercial real estate, and agriculture real estate loan balances. This was somewhat offset by a decrease in loans secured by non-owner occupied commercial real estate, multi-family property, and consumer loans. The table below illustrates changes in loan balances by type over recent periods:


Summary Loan Data as of:	Dec. 31,			Sep. 30,			June 30,			Mar. 31,			Dec. 31,
(dollars in thousands)	2024			2024			2024			2024			2023

1-4 residential real estate	$	967,196		$	942,916		$	925,397		$	903,371		$	893,940
Non-owner occupied commercial real estate		882,484			903,678			899,770			898,911			863,426
Owner occupied commercial real estate		435,392			438,030			427,476			412,958			403,109
Multi-family real estate		376,081			371,177			384,564			417,106			380,632
Construction and land development		393,388			351,481			290,541			268,315			298,290
Agriculture real estate		239,912			239,787			232,520			233,853			238,093
Total loans secured by real estate		3,294,453			3,247,069			3,160,268			3,134,514			3,077,490

Commercial and industrial		484,799			457,018			450,147			436,093			443,532
Agriculture production		188,284			200,215			175,968			139,533			146,254
Consumer		56,017			58,735			59,671			56,506			57,771
All other loans		3,628			3,699			3,981			4,799			7,106
Total loans		4,027,181			3,966,736			3,850,035			3,771,445			3,732,153

Deferred loan fees, net		(202	)		(218	)		(232	)		(251	)		(263	)
Gross loans		4,026,979			3,966,518			3,849,803			3,771,194			3,731,890
Allowance for credit losses		(54,740	)		(54,437	)		(52,516	)		(51,336	)		(50,084	)
Net loans	$	3,972,239		$	3,912,081		$	3,797,287		$	3,719,858		$	3,681,806

Loans anticipated to fund in the next 90 days totaled $172.5 million at December 31, 2024, as compared to $168.0 million at September 30, 2024, and $140.5 million at December 31, 2023.

The Bank’s concentration in non-owner occupied commercial real estate, as defined for regulatory purposes, is estimated at 316.9% of Tier 1 capital and ACL at December 31, 2024, as compared to 317.5% as of June 30, 2024, with these loans representing 41.0% of gross loans at December 31, 2024. Multi-family residential real estate, hospitality (hotels/restaurants), care facilities, retail stand-alone, and strip centers are the most common collateral types within the non-owner occupied commercial real estate loan portfolio. The multi-family residential real estate loan portfolio commonly includes loans collateralized by properties currently in the low-income housing tax credit (LIHTC) program or that have exited the program. The hospitality and retail stand-alone segments include primarily franchised businesses; care facilities consisting mainly of skilled nursing and assisted living centers; and strip centers, which can be defined as non-mall shopping centers with a variety of tenants. Non-owner-occupied office property types included 33 loans totaling $24.2 million, or 0.60% of gross loans at December 31, 2024, none of which were adversely classified, and are generally comprised of smaller spaces with diverse tenants. The Company continues to monitor its commercial real estate concentration and the individual segments closely.

Nonperforming loans (NPLs) were $8.3 million, or 0.21% of gross loans, at December 31, 2024, as compared to $6.7 million, or 0.17% of gross loans at June 30, 2024. Nonperforming assets (NPAs) were $10.8 million, or 0.22% of total assets, at December 31, 2024, as compared to $10.6 million, or 0.23% of total assets, at June 30, 2024. The rise in the total dollar of NPAs reflects an increase in NPLs, which was largely offset by a reduction in other real estate owned due to property sales. The increase in NPLs was primarily attributable to the addition of three unrelated loans collateralized by single-family residential property, totaling $1.4 million.

Our ACL at December 31, 2024, totaled $54.7 million, representing 1.36% of gross loans and 659% of NPLs, as compared to an ACL of $52.5 million, representing 1.36% of gross loans and 786% of NPLs, at June 30, 2024. The Company has estimated its expected credit losses as of December 31, 2024, under ASC 326-20, and management believes the ACL as of that date was adequate based on that estimate. There remains, however, significant uncertainty as borrowers adjust to relatively high market interest rates, although the Federal Reserve has reduced short-term rates somewhat during this fiscal year. Qualitative adjustments in the Company’s ACL model were increased compared to June 30, 2024, due to various factors that are relevant to determining expected collectability of credit. The Company decreased the allowance attributable to classified hotel loans that have been slow to recover from the COVID-19 pandemic due to updated collateral appraisals, which provided a more favorable assessment than the Company’s prior period estimates. Additionally, provision for credit loss (PCL) was required due to loan growth in the second quarter of fiscal year 2025. As a percentage of average loans outstanding, the Company recorded net charge offs of 0.02% (annualized) during the current period, as compared to 0.10% for the same period of the prior fiscal year.

Total liabilities were $4.4 billion at December 31, 2024, an increase of $279.7 million, or 6.8%, as compared to June 30, 2024.

Deposits were $4.2 billion at December 31, 2024, an increase of $267.6 million, or 6.8%, as compared to June 30, 2024. The deposit portfolio saw year-to-date increases primarily in certificates of deposit and savings accounts, as customers continued to move balances into high yield savings accounts and special rate time deposits in the relatively high rate environment. Public unit balances totaled $565.9 million at December 31, 2024, a decrease of $28.7 million compared to June 30, 2024, but an increase of $55.4 million, as compared to $510.5 million at September 30, 2024. Public unit balances increased compared to September 30, 2024, the linked quarter, due to seasonal inflows, but decreased year-to-date due to the loss of a large local public unit depositor. Brokered deposits totaled $254.0 million at December 31, 2024, an increase of $80.3 million as compared to June 30, 2024, but a decrease of $19.1 million compared to September 30, 2024, the linked quarter. Year-to-date, the Company increased brokered deposits due to more attractive pricing for brokered certificates of deposit relative to local market rates and the need to meet seasonal loan demand, and to build on-balance sheet liquidity. The average loan-to-deposit ratio for the second quarter of fiscal 2025 was 96.4%, as compared to 96.3% for the quarter ended June 30, 2024, and 94.3% for the same period of the prior fiscal year. The loan-to-deposit ratio at period end December 31, 2024, was 95.6%. The table below illustrates changes in deposit balances by type over recent periods:


Summary Deposit Data as of:	Dec. 31,		Sep. 30,		June 30,		Mar. 31,		Dec. 31,
(dollars in thousands)	2024		2024		2024		2024		2023

Non-interest bearing deposits	$	514,199	$	503,209	$	514,107	$	525,959	$	534,194
NOW accounts		1,211,402		1,128,917		1,239,663		1,300,358		1,304,371
MMDAs – non-brokered		347,271		320,252		334,774		359,569		378,578
Brokered MMDAs		3,018		12,058		2,025		10,084		20,560
Savings accounts		573,291		556,030		517,084		455,212		372,824
Total nonmaturity deposits		2,649,181		2,520,466		2,607,653		2,651,182		2,610,527

Certificates of deposit – non-brokered		1,310,421		1,258,583		1,163,650		1,158,063		1,194,993
Brokered certificates of deposit		251,025		261,093		171,756		176,867		179,980
Total certificates of deposit		1,561,446		1,519,676		1,335,406		1,334,930		1,374,973

Total deposits	$	4,210,627	$	4,040,142	$	3,943,059	$	3,986,112	$	3,985,500

Public unit nonmaturity accounts	$	482,406	$	447,638	$	541,445	$	572,631	$	544,873
Public unit certificates of deposit		83,506		62,882		53,144		51,834		49,237
Total public unit deposits	$	565,912	$	510,520	$	594,589	$	624,465	$	594,110

FHLB advances were $107.1 million at December 31, 2024, an increase of $5.0 million, or 4.9%, as compared to June 30, 2024.

The Company’s stockholders’ equity was $512.4 million at December 31, 2024, an increase of $23.6 million, or 4.8%, as compared to June 30, 2024. The increase was attributable primarily to earnings retained after cash dividends paid, in combination with a $1.0 million reduction in accumulated other comprehensive losses (AOCL) as the market value of the Company’s investments appreciated due to the decrease in market interest rates. The AOCL totaled $16.4 million at December 31, 2024 compared $17.5 million at June 30, 2024. The Company does not hold any securities classified as held-to-maturity.

Quarterly Income Statement Summary:

The Company’s net interest income for the three-month period ended December 31, 2024, was $38.1 million, an increase of $3.7 million, or 10.6%, as compared to the same period of the prior fiscal year. The increase was attributable to a 6.7% increase in the average balance of interest-earning assets and an 11-basis point increase in the net interest margin, from 3.25% to 3.36%, as the 32-basis point increase in the yield on interest-earning assets was partially offset by a 22-basis point increase in cost of interest-bearing liabilities.

Loan discount accretion and deposit premium amortization related to the May 2020 acquisition of Central Federal Savings & Loan Association, the February 2022 merger of FortuneBank, and the January 2023 acquisition of Citizens Bank & Trust resulted in $987,000 in net interest income for the three-month period ended December 31, 2024, as compared to $1.5 million in net interest income for the same period a year ago. Combined, this component of net interest income contributed nine basis points to net interest margin in the three-month period ended December 31, 2024, compared to 14 basis points during the same period of the prior fiscal year, and as compared to a nine basis point contribution in the linked quarter, ended September 30, 2024, when the net interest margin was 3.37%.

The Company recorded a PCL of $932,000 in the three-month period ended December 31, 2024, as compared to a PCL of $900,000 in the same period of the prior fiscal year. The current period PCL was the result of a $501,000 provision attributable to the ACL for loan balances outstanding and a $431,000 provision attributable to the allowance for off-balance sheet credit exposures.

The Company’s noninterest income for the three-month period ended December 31, 2024, was $6.9 million, an increase of $1.2 million, or 21.7%, as compared to the same period of the prior fiscal year. The increase was primarily attributable to the Company’s realization of a $682,000 loss on sale of AFS securities in the year-ago period, as well as increases in deposit account charges and related fees, other loan fees, and wealth management fees. These increases were partially offset by lower net realized gains on sale of loans, which were primarily driven by a reduction in gains on sale of Small Business Administration (SBA) loans, and lower loan late charges.

Noninterest expense for the three-month period ended December 31, 2024, was $24.9 million, an increase of $1.0 million, or 4.3%, as compared to the same period of the prior fiscal year. The increase was attributable primarily to increases in compensation and benefits, legal and professional fees, other noninterest expense, and occupancy expenses. The increase in compensation and benefits expense was primarily due to a trend increase in employee headcount, as well as annual merit increases. Legal and professional fees were elevated due to consulting fees tied to internal projects, recruiter costs, and the settlement of a legal matter. Other noninterest expense increased due to increased expenses associated with SBA loans and costs for employee travel and training. Lastly, occupancy and equipment expenses increased primarily due to depreciation on recent capitalized expenditures, including buildings, equipment, and signage. Partially offsetting these increases from the prior year period are lower data processing and telecommunication expenses, and a reduction in intangible amortization, as the core deposit intangible recognized in an older merger was fully amortized in the prior quarter.

The efficiency ratio for the three-month period ended December 31, 2024, was 55.3%, as compared to 58.5% in the same period of the prior fiscal year. The change was attributable to net interest income and noninterest income growing faster than operating expenses.

The income tax provision for the three-month period ended December 31, 2024, was $4.5 million, an increase of $1.4 million, or 43.3%, as compared to the same period of the prior fiscal year. The current period effective tax rate was 23.7%, as compared to 20.6% in the same quarter of the prior fiscal year. The effective tax rate for the December 31, 2024, quarter was elevated due to an adjustment of tax accruals attributable to completed merger & acquisition activity.

Forward-Looking Information:

Except for the historical information contained herein, the matters discussed in this press release may be deemed to be forward-looking statements that are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from the forward-looking statements, including: potential adverse impacts to the economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, expected cost savings, synergies and other benefits from our merger and acquisition activities might not be realized to the extent expected, within the anticipated time frames, or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention and labor shortages, might be greater than expected and goodwill impairment charges might be incurred; the strength of the United States economy in general and the strength of local economies in which we conduct operations; fluctuations in interest rates and the possibility of a recession; monetary and fiscal policies of the FRB and the U.S. Government and other governmental initiatives affecting the financial services industry; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors’ products and services; fluctuations in real estate values in both residential and commercial real estate markets, as well as agricultural business conditions; demand for loans and deposits; legislative or regulatory changes that adversely affect our business; changes in accounting principles, policies, or guidelines; results of regulatory examinations, including the possibility that a regulator may, among other things, require an increase in our reserve for credit losses or write-down of assets; the impact of technological changes; and our success at managing the risks involved in the foregoing. Any forward-looking statements are based upon management’s beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed might not occur, and you should not put undue reliance on any forward-looking statements.

Southern Missouri Bancorp, Inc. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION


Summary Balance Sheet Data as of:	Dec. 31,			Sep. 30,			June 30,			Mar. 31,			Dec. 31,
(dollars in thousands, except per share data)	2024			2024			2024			2024			2023

Cash equivalents and time deposits	$	146,078		$	75,591		$	61,395		$	168,763		$	217,090
Available for sale (AFS) securities		468,060			420,209			427,903			433,689			417,406
FHLB/FRB membership stock		18,099			18,064			17,802			17,734			18,023
Loans receivable, gross		4,026,979			3,966,518			3,849,803			3,771,194			3,731,890
Allowance for credit losses		54,740			54,437			52,516			51,336			50,084
Loans receivable, net		3,972,239			3,912,081			3,797,287			3,719,858			3,681,806
Bank-owned life insurance		74,643			74,119			73,601			73,101			72,618
Intangible assets		75,399			76,340			77,232			78,049			79,088
Premises and equipment		96,418			96,087			95,952			95,801			94,519
Other assets		56,738			56,709			53,144			59,997			62,952
Total assets	$	4,907,674		$	4,729,200		$	4,604,316		$	4,646,992		$	4,643,502

Interest-bearing deposits	$	3,696,428		$	3,536,933		$	3,428,952		$	3,437,420		$	3,451,306
Noninterest-bearing deposits		514,199			503,209			514,107			548,692			534,194
Securities sold under agreements to repurchase		15,000			15,000			9,398			9,398			9,398
FHLB advances		107,070			107,069			102,050			102,043			113,036
Other liabilities		39,424			38,191			37,905			46,712			42,256
Subordinated debt		23,182			23,169			23,156			23,143			23,130
Total liabilities		4,395,303			4,223,571			4,115,568			4,167,408			4,173,320

Total stockholders’ equity		512,371			505,629			488,748			479,584			470,182

Total liabilities and stockholders’ equity	$	4,907,674		$	4,729,200		$	4,604,316		$	4,646,992		$	4,643,502

Equity to assets ratio		10.44	%		10.69	%		10.61	%		10.32	%		10.13	%

Common shares outstanding		11,277,167			11,277,167			11,277,737			11,366,094			11,336,462
Less: Restricted common shares not vested		46,653			56,553			57,956			57,956			49,676
Common shares for book value determination		11,230,514			11,220,614			11,219,781			11,308,138			11,286,786

Book value per common share	$	45.62		$	45.06		$	43.56		$	42.41		$	41.66
Less: Intangible assets per common share		6.71			6.80			6.88			6.90			7.01
Tangible book value per common share ⁽¹⁾		38.91			38.26			36.68			35.51			34.65
Closing market price		57.37			56.49			45.01			43.71			53.39

(1) Non-GAAP financial measure.


Nonperforming asset data as of:	Dec. 31,			Sep. 30,			June 30,			Mar. 31,			Dec. 31,
(dollars in thousands)	2024			2024			2024			2024			2023

Nonaccrual loans	$	8,309		$	8,206		$	6,680		$	7,329		$	5,922
Accruing loans 90 days or more past due		—			—			—			81			—
Total nonperforming loans		8,309			8,206			6,680			7,410			5,922
Other real estate owned (OREO)		2,423			3,842			3,865			3,791			3,814
Personal property repossessed		37			21			23			60			40
Total nonperforming assets	$	10,769		$	12,069		$	10,568		$	11,261		$	9,776

Total nonperforming assets to total assets		0.22	%		0.26	%		0.23	%		0.24	%		0.21	%
Total nonperforming loans to gross loans		0.21	%		0.21	%		0.17	%		0.20	%		0.16	%
Allowance for credit losses to nonperforming loans		658.80	%		663.38	%		786.17	%		692.79	%		845.73	%
Allowance for credit losses to gross loans		1.36	%		1.37	%		1.36	%		1.36	%		1.34	%

Performing modifications to borrowers experiencing financial difficulty	$	24,083		$	24,340		$	24,602		$	24,848		$	24,237


	For the three-month period ended
Quarterly Summary Income Statement Data:	Dec. 31,		Sep. 30,		June 30,		Mar. 31,		Dec. 31,
(dollars in thousands, except per share data)	2024		2024		2024		2024		2023

Interest income:
Cash equivalents	$	784	$	78	$	541	$	2,587	$	1,178
AFS securities and membership stock		5,558		5,547		5,677		5,486		5,261
Loans receivable		63,082		61,753		58,449		55,952		55,137
Total interest income		69,424		67,378		64,667		64,025		61,576
Interest expense:
Deposits		29,538		28,796		27,999		27,893		25,445
Securities sold under agreements to repurchase		226		160		125		128		126
FHLB advances		1,099		1,326		1,015		1,060		1,079
Subordinated debt		418		435		433		435		440
Total interest expense		31,281		30,717		29,572		29,516		27,090
Net interest income		38,143		36,661		35,095		34,509		34,486
Provision for credit losses		932		2,159		900		900		900
Noninterest income:
Deposit account charges and related fees		2,237		2,184		1,978		1,847		1,784
Bank card interchange income		1,301		1,499		1,770		1,301		1,329
Loan late charges		—		—		170		150		146
Loan servicing fees		232		286		494		267		285
Other loan fees		944		1,063		617		757		644
Net realized gains on sale of loans		133		361		97		99		304
Net realized losses on sale of AFS securities		—		—		—		(807		(682
Earnings on bank owned life insurance		522		517		498		483		472
Insurance brokerage commissions		300		287		331		312		310
Wealth management fees		843		730		838		866		668
Other noninterest income		353		247		974		309		380
Total noninterest income		6,865		7,174		7,767		5,584		5,640
Noninterest expense:
Compensation and benefits		13,737		14,397		13,894		13,750		12,961
Occupancy and equipment, net		3,585		3,689		3,790		3,623		3,478
Data processing expense		2,224		2,171		1,929		2,349		2,382
Telecommunications expense		354		428		468		464		465
Deposit insurance premiums		588		472		638		677		598
Legal and professional fees		619		1,208		516		412		387
Advertising		442		546		640		622		392
Postage and office supplies		283		306		308		344		283
Intangible amortization		897		897		1,018		1,018		1,018
Foreclosed property expenses		73		12		52		60		44
Other noninterest expense		2,074		1,715		1,749		1,730		1,852
Total noninterest expense		24,876		25,841		25,002		25,049		23,860
Net income before income taxes		19,200		15,835		16,960		14,144		15,366
Income taxes		4,547		3,377		3,430		2,837		3,173
Net income		14,653		12,458		13,530		11,307		12,193
Less: Distributed and undistributed earnings allocated
to participating securities		61		62		69		58		53
Net income available to common shareholders	$	14,592	$	12,396	$	13,461	$	11,249	$	12,140

Basic earnings per common share	$	1.30	$	1.10	$	1.19	$	1.00	$	1.08
Diluted earnings per common share		1.30		1.10		1.19		0.99		1.07
Dividends per common share		0.23		0.23		0.21		0.21		0.21
Average common shares outstanding:
Basic		11,231,000		11,221,000		11,276,000		11,302,000		11,287,000
Diluted		11,260,000		11,240,000		11,283,000		11,313,000		11,301,000


	For the three-month period ended
Quarterly Average Balance Sheet Data:	Dec. 31,			Sep. 30,			June 30,			Mar. 31,			Dec. 31,
(dollars in thousands)	2024			2024			2024			2024			2023

Interest-bearing cash equivalents	$	64,976		$	5,547		$	39,432		$	182,427		$	89,123
AFS securities and membership stock		479,633			460,187			476,198			472,904			468,498
Loans receivable, gross		3,989,643			3,889,740			3,809,209			3,726,631			3,691,586
Total interest-earning assets		4,534,252			4,355,474			4,324,839			4,381,962			4,249,207
Other assets		291,217			283,056			285,956			291,591			301,415
Total assets	$	4,825,469		$	4,638,530		$	4,610,795		$	4,673,553		$	4,550,622

Interest-bearing deposits	$	3,615,767		$	3,416,752		$	3,417,360		$	3,488,104		$	3,341,221
Securities sold under agreements to repurchase		15,000			12,321			9,398			9,398			9,398
FHLB advances		107,054			123,723			102,757			111,830			113,519
Subordinated debt		23,175			23,162			23,149			23,137			23,124
Total interest-bearing liabilities		3,760,996			3,575,958			3,552,664			3,632,469			3,487,262
Noninterest-bearing deposits		524,878			531,946			539,637			532,075			572,101
Other noninterest-bearing liabilities		31,442			33,737			35,198			33,902			31,807
Total liabilities		4,317,316			4,141,641			4,127,499			4,198,446			4,091,170

Total stockholders’ equity		508,153			496,889			483,296			475,107			459,452

Total liabilities and stockholders’ equity	$	4,825,469		$	4,638,530		$	4,610,795		$	4,673,553		$	4,550,622

Return on average assets		1.21	%		1.07	%		1.17	%		0.97	%		1.07	%
Return on average common stockholders’ equity		11.5	%		10.0	%		11.2	%		9.5	%		10.6	%

Net interest margin		3.36	%		3.37	%		3.25	%		3.15	%		3.25	%
Net interest spread		2.79	%		2.75	%		2.65	%		2.59	%		2.69	%

Efficiency ratio		55.3	%		59.0	%		58.3	%		61.2	%		58.5	%

The MIL Network –

January 28, 2025

MIL-OSI: Five Star Bancorp Announces Quarterly and Annual Results

Source: GlobeNewswire (MIL-OSI)

RANCHO CORDOVA, Calif., Jan. 27, 2025 (GLOBE NEWSWIRE) — Five Star Bancorp (Nasdaq: FSBC) (“Five Star” or the “Company”), a holding company that operates through its wholly owned banking subsidiary, Five Star Bank (the “Bank”), today reported net income of $13.3 million for the three months ended December 31, 2024, as compared to $10.9 million for the three months ended September 30, 2024 and $10.8 million for the three months ended December 31, 2023. Net income for the year ended December 31, 2024 was $45.7 million, as compared to $47.7 million for the year ended December 31, 2023.

Financial and Other Highlights

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

	Three months ended
(in thousands, except per share and share data)	December 31, 2024			September 30, 2024			December 31, 2023
Return on average assets (“ROAA”)		1.31	%		1.18	%		1.26	%
Return on average equity (“ROAE”)		13.48	%		11.31	%		15.45	%
Pre-tax income	$	19,367		$	15,241		$	15,151
Pre-tax, pre-provision income⁽¹⁾	$	20,667		$	17,991		$	15,951
Net income	$	13,317		$	10,941		$	10,799
Basic earnings per common share	$	0.63		$	0.52		$	0.63
Diluted earnings per common share	$	0.63		$	0.52		$	0.63
Weighted average basic common shares outstanding		21,182,143			21,182,143			17,175,445
Weighted average diluted common shares outstanding		21,235,318			21,232,758			17,193,114
Shares outstanding at end of period		21,319,083			21,319,583			17,256,989

	Year ended
(in thousands, except per share and share data)	December 31, 2024			December 31, 2023
ROAA		1.23	%		1.44	%
ROAE		12.72	%		17.85	%
Pre-tax income	$	64,721		$	66,616
Pre-tax, pre-provision income⁽¹⁾	$	71,671		$	70,616
Net income	$	45,671		$	47,734
Basic earnings per common share	$	2.26		$	2.78
Diluted earnings per common share	$	2.26		$	2.78
Weighted average basic common shares outstanding		20,154,385			17,166,592
Weighted average diluted common shares outstanding		20,205,440			17,187,969
Shares outstanding at end of period		21,319,083			17,256,989

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

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

“While we focus on the future and maintaining a position of distinction and respect in the markets we serve, we proudly look back at 2024 as another outstanding year of achievement. We experienced consistent, strong financial performance with year-over-year growth in loans and deposits, a consistent shareholder dividend, and stable net interest margin. We also continued our successful execution of our San Francisco market expansion and now have 27 employees in the San Francisco Bay Area who contributed $229.5 million in deposits from June 5, 2023 to December 31, 2024. We have managed expenses and executed on conservative underwriting practices, which are foundational to our success.

Five Star Bank consistently executes on client and community-focused initiatives, and in 2024, we received a Super Premier rating from Findley Reports, an IDC Superior rating, and a Bauer Financial rating of 5 stars (out of five). We were also awarded the prestigious 2023 Raymond James Community Bankers Cup, were among S&P Global Market Intelligence’s 2023 Top 20 Best-Performing Community banks in the nation (with assets between $3 billion and $10 billion), and were ranked fifth on the 2024 Bank Director Magazine (RankingBanking) Best U.S. Banks with assets less than $5 billion. We also received the Greater Sacramento Economic Council’s Sustainability Award recognizing a company that has supported industry growth in the Greater Sacramento region.

In 2024, our senior leadership was recognized by the Sacramento Business Journal with a C-Suite Award, a Women Who Mean Business honor, a 40 Under 40 recognition, and placement on the Power 100 list. Our senior leadership was also recognized on the San Francisco Business Times’ Newsmaker 100 list, as part of the Independent Community Bankers of America’s 40 Under 40: Emerging Community Bank Leaders, among the Association of Latino Professionals for America’s 50 Most Powerful Latinas, and with a National Association of Women Business Owners’ Sacramento Valley Outstanding Women Leaders’ Executive Woman award.

Being recognized as community leaders ensures Five Star Bank remains top of mind in the markets we serve as we continue to build-out our market presence. I am humbled and proud of our team’s accomplishments and look forward to the future.”

Financial highlights included the following:

The San Francisco Bay Area team, which increased from 24 to 27 employees during the three months ended December 31, 2024, generated deposit balances totaling $229.5 million at December 31, 2024, an increase of $40.4 million from September 30, 2024.
Cash and cash equivalents were $352.3 million, representing 9.90% of total deposits at December 31, 2024, as compared to 7.38% at September 30, 2024.
Total deposits increased by $158.0 million, or 4.65%, during the three months ended December 31, 2024, due to increases in both non-wholesale and wholesale deposits, which the Company defines as brokered deposits and public time deposits. During the three months ended December 31, 2024, non-wholesale deposits increased by $8.0 million, or 0.27%, and wholesale deposits increased by $150.0 million, or 36.59%.
Consistent, disciplined management of expenses contributed to our efficiency ratio of 41.21% for the three months ended December 31, 2024, as compared to 43.37% for the three months ended September 30, 2024.
For the three months ended December 31, 2024, net interest margin was 3.36%, as compared to 3.37% for the three months ended September 30, 2024 and 3.19% for the three months ended December 31, 2023. For the year ended December 31, 2024, net interest margin was 3.32%, as compared to 3.42% for the year ended December 31, 2023. The effective Federal Funds rate fell to 4.33% as of December 31, 2024 from 4.83% as of September 30, 2024 and 5.33% as of December 31, 2023.
Other comprehensive loss was $2.6 million during the three months ended December 31, 2024. Unrealized losses, net of tax effect, on available-for-sale securities were $12.4 million as of December 31, 2024. Total carrying value of held-to-maturity and available-for-sale securities represented 0.07% and 2.48% of total interest-earning assets, respectively, as of December 31, 2024.
The Company’s common equity Tier 1 capital ratio was 11.02% and 10.93% as of December 31, 2024 and September 30, 2024, respectively. The Bank continues to meet all requirements to be considered “well-capitalized” under applicable regulatory guidelines.
Loan and deposit growth in the three and twelve months ended December 31, 2024 was as follows:

(in thousands)	December 31, 2024		September 30, 2024		$ Change		% Change
Loans held for investment	$	3,532,686	$	3,460,565	$	72,121	2.08	%
Non-interest-bearing deposits		922,629		906,939		15,690	1.73	%
Interest-bearing deposits		2,635,365		2,493,040		142,325	5.71	%

(in thousands)	December 31, 2024		December 31, 2023		$ Change		% Change
Loans held for investment	$	3,532,686	$	3,081,719	$	450,967	14.63	%
Non-interest-bearing deposits		922,629		831,101		91,528	11.01	%
Interest-bearing deposits		2,635,365		2,195,795		439,570	20.02	%

The ratio of nonperforming loans to loans held for investment at period end decreased from 0.06% at December 31, 2023 to 0.05% at December 31, 2024.
The Company’s Board of Directors declared, and the Company subsequently paid, a cash dividend of $0.20 per share during the three months ended December 31, 2024. The Company’s Board of Directors subsequently declared another cash dividend of $0.20 per share on January 16, 2025, which the Company expects to pay on February 10, 2025 to shareholders of record as of February 3, 2025.

Summary Results

Three months ended December 31, 2024, as compared to three months ended September 30, 2024

The Company’s net income was $13.3 million for the three months ended December 31, 2024, as compared to $10.9 million for the three months ended September 30, 2024. Net interest income increased by $3.1 million, primarily due to an increase in interest income driven by a larger average balance of interest-earning assets, partially offset by an increase in interest expense due to a larger average balance of deposits, as compared to September 30, 2024. The provision for credit losses decreased by $1.5 million, reflecting adjustments to expectations for credit losses based on economic trends and forecasts in the three months ended December 31, 2024 compared to the three months ended September 30, 2024. Non-interest income increased by $0.3 million, primarily due to income received on equity investments in venture-backed funds during the three months ended December 31, 2024, combined with a loss from equity investments in venture-backed funds during the three months ended September 30, 2024. Non-interest expense increased by $0.7 million, primarily due to: (i) increased salaries and employee benefits mainly resulting from increased loan production driving higher commissions expense period-over-period; and (ii) increased advertising and promotional expenses due to a larger number of events sponsored and attended period-over-period.

Three months ended December 31, 2024, as compared to three months ended December 31, 2023

The Company’s net income was $13.3 million for the three months ended December 31, 2024, as compared to $10.8 million for the three months ended December 31, 2023. Net interest income increased by $6.8 million, primarily due to an increase in interest income driven by higher average balances and yields on loans, partially offset by an increase in interest expense due to higher average balances and rates on deposits. The provision for credit losses increased by $0.5 million, reflecting adjustments to expectations for credit losses based on economic trends and forecasts in the three months ended December 31, 2024 compared to the three months ended December 31, 2023. Non-interest income decreased by $0.3 million, primarily due to lower swap referral and rate lock fees during the three months ended December 31, 2024 compared to the same quarter of the prior year. Non-interest expense increased by $1.8 million with an increase in salaries and employee benefits related to the Company’s expansion into the San Francisco Bay Area as the leading driver.

Year ended December 31, 2024, as compared to year ended December 31, 2023

The Company’s net income was $45.7 million for the year ended December 31, 2024, as compared to $47.7 million for the year ended December 31, 2023. Net interest income increased by $8.8 million, primarily due to an increase in interest income driven by higher average balances and yields on loans, partially offset by an increase in interest expense due to higher average balances and rates on deposits. The provision for credit losses increased by $3.0 million, or 73.75%, as loan originations in the year ended December 31, 2024 were almost double those for the year ended December 31, 2023. Non-interest income decreased by $1.1 million, primarily due to lower income received on equity investments in venture-backed funds during the year ended December 31, 2024 than during the year ended December 31, 2023. Non-interest expense increased by $6.7 million with an increase in salaries and employee benefits related to the Company’s expansion into the San Francisco Bay Area as the leading driver.

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

	Three months ended
(in thousands, except per share data)	December 31, 2024			September 30, 2024			$ Change			% Change
Selected operating data:
Net interest income	$	33,489		$	30,386		$	3,103		10.21	%
Provision for credit losses		1,300			2,750			(1,450	)	(52.73)	%
Non-interest income		1,666			1,381			285		20.64	%
Non-interest expense		14,488			13,776			712		5.17	%
Pre-tax income		19,367			15,241			4,126		27.07	%
Provision for income taxes		6,050			4,300			1,750		40.70	%
Net income	$	13,317		$	10,941		$	2,376		21.72	%
Earnings per common share:
Basic	$	0.63		$	0.52		$	0.11		21.15	%
Diluted	$	0.63		$	0.52		$	0.11		21.15	%
Performance and other financial ratios:
ROAA		1.31	%		1.18	%
ROAE		13.48	%		11.31	%
Net interest margin		3.36	%		3.37	%
Cost of funds		2.65	%		2.72	%
Efficiency ratio		41.21	%		43.37	%

	Three months ended
(in thousands, except per share data)	December 31, 2024			December 31, 2023			$ Change			% Change
Selected operating data:
Net interest income	$	33,489		$	26,678		$	6,811		25.53	%
Provision for credit losses		1,300			800			500		62.50	%
Non-interest income		1,666			1,936			(270	)	(13.95)	%
Non-interest expense		14,488			12,663			1,825		14.41	%
Pre-tax income		19,367			15,151			4,216		27.83	%
Provision for income taxes		6,050			4,352			1,698		39.02	%
Net income	$	13,317		$	10,799		$	2,518		23.32	%
Earnings per common share:
Basic	$	0.63		$	0.63		$	—		—	%
Diluted	$	0.63		$	0.63		$	—		—	%
Performance and other financial ratios:
ROAA		1.31	%		1.26	%
ROAE		13.48	%		15.45	%
Net interest margin		3.36	%		3.19	%
Cost of funds		2.65	%		2.50	%
Efficiency ratio		41.21	%		44.25	%

	Year ended
(in thousands, except per share data)	December 31, 2024			December 31, 2023			$ Change			% Change
Selected operating data:
Net interest income	$	119,711		$	110,880		$	8,831		7.96	%
Provision for credit losses		6,950			4,000			2,950		73.75	%
Non-interest income		6,453			7,511			(1,058	)	(14.09)	%
Non-interest expense		54,493			47,775			6,718		14.06	%
Pre-tax income		64,721			66,616			(1,895	)	(2.84)	%
Provision for income taxes		19,050			18,882			168		0.89	%
Net income	$	45,671		$	47,734		$	(2,063	)	(4.32)	%
Earnings per common share:
Basic	$	2.26		$	2.78		$	(0.52	)	(18.71)	%
Diluted	$	2.26		$	2.78		$	(0.52	)	(18.71)	%
Performance and other financial ratios:
ROAA		1.23	%		1.44	%
ROAE		12.72	%		17.85	%
Net interest margin		3.32	%		3.42	%
Cost of funds		2.64	%		2.10	%
Efficiency ratio		43.19	%		40.35	%

Balance Sheet Summary

(in thousands)	December 31, 2024		December 31, 2023		$ Change			% Change
Selected financial condition data:
Total assets	$	4,053,278	$	3,593,125	$	460,153		12.81	%
Cash and cash equivalents		352,343		321,576		30,767		9.57	%
Total loans held for investment		3,532,686		3,081,719		450,967		14.63	%
Total investments		100,914		111,160		(10,246	)	(9.22)	%
Total liabilities		3,656,654		3,307,351		349,303		10.56	%
Total deposits		3,557,994		3,026,896		531,098		17.55	%
Subordinated notes, net		73,895		73,749		146		0.20	%
Total shareholders’ equity		396,624		285,774		110,850		38.79	%

Insured and collateralized deposits were approximately $2.4 billion, representing 66.92% of total deposits as of December 31, 2024. Net uninsured and uncollateralized deposits were approximately $1.2 billion as of December 31, 2024.
Commercial and consumer deposit accounts constituted 77.00% of total deposits. Deposit relationships of greater than $5 million represented 61.13% of total deposits and had an average age of approximately 9.28 years as of December 31, 2024.
Cash and cash equivalents as of December 31, 2024 were $352.3 million, representing 9.90% of total deposits at December 31, 2024, as compared to 10.62% as of December 31, 2023.
Total liquidity (consisting of cash and cash equivalents and unused and immediately available borrowing capacity as set forth below) was approximately $1.9 billion as of December 31, 2024.

	December 31, 2024
(in thousands)	Line of Credit		Letters of Credit Issued		Borrowings		Available
Federal Home Loan Bank of San Francisco (“FHLB”) advances	$	1,212,209	$	701,500	$	—	$	510,709
Federal Reserve Discount Window		862,136		—		—		862,136
Correspondent bank lines of credit		175,000		—		—		175,000
Cash and cash equivalents		—		—		—		352,343
Total	$	2,249,345	$	701,500	$	—	$	1,900,188

The increase in total assets from December 31, 2023 to December 31, 2024 was primarily due to a $451.0 million increase in total loans held for investment and a $30.8 million increase in cash and cash equivalents, partially offset by a $10.2 million decrease in investments. The $451.0 million increase in total loans held for investment between December 31, 2023 and December 31, 2024 was the result of $1.1 billion in loan originations, partially offset by $263.0 million and $423.0 million in loan payoffs and paydowns, respectively. The $451.0 million increase in total loans held for investment included $281.4 million in purchased loans within the consumer concentration of the loan portfolio. The $30.8 million increase in cash and cash equivalents primarily resulted from net cash inflows related to financing and operating activities of $425.7 million and $52.3 million, respectively, partially offset by net cash outflows related to investing activities of $447.3 million.

The increase in total liabilities from December 31, 2023 to December 31, 2024 was primarily attributable to an increase in deposits of $531.1 million, partially offset by a decrease in other borrowings of $170.0 million. The $531.1 million increase in deposits was largely due to increases in money market, time, and non-interest-bearing demand deposits of $242.9 million, $203.6 million, and $91.5 million, respectively, partially offset by decreases in interest-bearing demand and savings deposits of $5.1 million and $1.8 million, respectively.

The increase in total shareholders’ equity from December 31, 2023 to December 31, 2024 was primarily a result of $80.9 million of additional common stock issued during the year and net income recognized of $45.7 million, partially offset by $16.2 million in cash dividends paid during the period.

Net Interest Income and Net Interest Margin

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

	Three months ended
(in thousands)	December 31, 2024			September 30, 2024			$ Change		% Change
Interest and fee income	$	57,745		$	52,667		$	5,078	9.64	%
Interest expense		24,256			22,281			1,975	8.86	%
Net interest income	$	33,489		$	30,386		$	3,103	10.21	%
Net interest margin		3.36	%		3.37	%

	Three months ended
(in thousands)	December 31, 2024			December 31, 2023			$ Change		% Change
Interest and fee income	$	57,745		$	46,180		$	11,565	25.04	%
Interest expense		24,256			19,502			4,754	24.38	%
Net interest income	$	33,489		$	26,678		$	6,811	25.53	%
Net interest margin		3.36	%		3.19	%

	Year ended
(in thousands)	December 31, 2024			December 31, 2023			$ Change		% Change
Interest and fee income	$	206,951		$	174,382		$	32,569	18.68	%
Interest expense		87,240			63,502			23,738	37.38	%
Net interest income	$	119,711		$	110,880		$	8,831	7.96	%
Net interest margin		3.32	%		3.42	%

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

	Three months ended
	December 31, 2024						September 30, 2024						December 31, 2023
(in thousands)	Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate
Assets
Interest-earning deposits in banks	$	363,828	$	4,335	4.74	%	$	126,266	$	1,657	5.22	%	$	157,775	$	2,100	5.28	%
Investment securities		103,930		607	2.33	%		106,256		620	2.32	%		106,483		651	2.43	%
Loans held for investment and sale		3,498,109		52,803	6.01	%		3,354,050		50,390	5.98	%		3,055,042		43,429	5.64	%
Total interest-earning assets		3,965,867		57,745	5.79	%		3,586,572		52,667	5.84	%		3,319,300		46,180	5.52	%
Interest receivable and other assets, net		91,736						91,965						80,360
Total assets	$	4,057,603					$	3,678,537					$	3,399,660

Liabilities and shareholders’ equity
Interest-bearing transaction accounts	$	298,518	$	1,249	1.66	%	$	302,188	$	1,237	1.63	%	$	291,967	$	1,091	1.48	%
Savings accounts		127,298		887	2.77	%		124,851		979	3.12	%		130,915		891	2.70	%
Money market accounts		1,596,116		13,520	3.37	%		1,578,244		14,688	3.70	%		1,347,111		10,824	3.19	%
Time accounts		617,596		7,438	4.79	%		326,640		4,172	5.08	%		417,434		5,322	5.06	%
Subordinated notes and other borrowings		73,872		1,162	6.25	%		76,988		1,205	6.23	%		88,401		1,374	6.16	%
Total interest-bearing liabilities		2,713,400		24,256	3.56	%		2,408,911		22,281	3.68	%		2,275,828		19,502	3.40	%
Demand accounts		921,881						852,872						821,651
Interest payable and other liabilities		29,234						32,062						24,886
Shareholders’ equity		393,088						384,692						277,295
Total liabilities & shareholders’ equity	$	4,057,603					$	3,678,537					$	3,399,660

Net interest spread					2.23	%					2.16	%					2.12	%
Net interest income/margin			$	33,489	3.36	%			$	30,386	3.37	%			$	26,678	3.19	%

Net interest income during the three months ended December 31, 2024 increased $3.1 million, or 10.21%, to $33.5 million compared to $30.4 million during the three months ended September 30, 2024. Net interest margin totaled 3.36% for the three months ended December 31, 2024, a decrease of one basis point compared to the prior quarter. The increase in net interest income is primarily attributable to an additional $5.1 million in interest income due to a $379.3 million, or 10.58%, increase in the average balance of interest-earning assets during the three months ended December 31, 2024 compared to the prior quarter. The increase in interest income was partially offset by a $2.0 million increase in deposit interest expense due to a $376.6 million, or 11.83%, increase in the average balance of deposits during the three months ended December 31, 2024 compared to the prior quarter.

As compared to the three months ended December 31, 2023, net interest income increased $6.8 million, or 25.53%, to $33.5 million compared to $26.7 million. Net interest margin totaled 3.36% for the three months ended December 31, 2024, an increase of 17 basis points compared to the same quarter of the prior year. The increase in net interest income is primarily attributable to an additional $9.4 million in loan interest income due to a $443.1 million, or 14.50%, increase in the average balance of loans and a 37 basis point improvement in the average yield on loans during the three months ended December 31, 2024 compared to the same quarter of the prior year. The increase in interest income was partially offset by a $5.0 million increase in deposit interest expense due to a $552.3 million, or 18.36%, increase in the average balance of deposits and a 19 basis point increase in the average cost of deposits during the three months ended December 31, 2024 compared to the same quarter of the prior year.

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

	Year ended
	December 31, 2024						December 31, 2023
(in thousands)	Average Balance		Interest Income/Expense		Yield/Rate		Average Balance		Interest Income/Expense		Yield/Rate
Assets
Interest-earning deposits in banks	$	218,156	$	11,080	5.08	%	$	184,103	$	9,069	4.93	%
Investment securities		106,289		2,530	2.38	%		113,515		2,600	2.29	%
Loans held for investment and sale		3,283,874		193,341	5.89	%		2,947,603		162,713	5.52	%
Total interest-earning assets		3,608,319		206,951	5.74	%		3,245,221		174,382	5.37	%
Interest receivable and other assets, net		90,061						75,741
Total assets	$	3,698,380					$	3,320,962

Liabilities and shareholders’ equity
Interest-bearing transaction accounts	$	298,137	$	4,716	1.58	%	$	312,944	$	3,321	1.06	%
Savings accounts		124,208		3,584	2.89	%		140,060		3,073	2.19	%
Money market accounts		1,533,405		53,750	3.51	%		1,263,539		33,932	2.69	%
Time accounts		412,007		20,348	4.94	%		372,557		17,535	4.71	%
Subordinated notes and other borrowings		77,335		4,842	6.26	%		93,279		5,641	6.05	%
Total interest-bearing liabilities		2,445,092		87,240	3.57	%		2,182,379		63,502	2.91	%
Demand accounts		858,789						844,057
Interest payable and other liabilities		35,331						27,127
Shareholders’ equity		359,168						267,399
Total liabilities & shareholders’ equity	$	3,698,380					$	3,320,962

Net interest spread					2.17	%					2.46	%
Net interest income/margin			$	119,711	3.32	%			$	110,880	3.42	%

Net interest income during the year ended December 31, 2024 increased $8.8 million, or 7.96%, to $119.7 million compared to $110.9 million during the year ended December 31, 2023. Net interest margin totaled 3.32% for the year ended December 31, 2024, a decrease of 10 basis points compared to the prior year. The increase in net interest income is primarily attributable to an additional $30.6 million in loan interest income due to a $336.3 million, or 11.41%, increase in the average balance of loans and a 37 basis point improvement in the average yield on loans as compared to the prior year. The increase in interest income was partially offset by an additional $24.5 million in deposit interest expense due to a $293.4 million, or 10.00%, increase in the average balance of deposits and a 58 basis point increase in the average cost of deposits compared to the prior year.

Loans by Type

The following table provides loan balances, excluding deferred loan fees, by type as of December 31, 2024:

(in thousands)
Real estate:
Commercial	$	2,857,173
Commercial land and development		3,849
Commercial construction		111,318
Residential construction		4,561
Residential		32,774
Farmland		47,241
Commercial:
Secured		170,548
Unsecured		27,558
Consumer and other		279,584
Net deferred loan fees		(1,920	)
Total loans held for investment	$	3,532,686

Interest-bearing Deposits

The following table provides interest-bearing deposit balances by type as of December 31, 2024:

(in thousands)
Interest-bearing demand accounts	$	315,217
Money market accounts		1,525,293
Savings accounts		124,702
Time accounts		670,153
Total interest-bearing deposits	$	2,635,365

Asset Quality

Allowance for Credit Losses

At December 31, 2024, the Company’s allowance for credit losses was $37.8 million, as compared to $34.4 million at December 31, 2023. The $3.4 million increase in the allowance is due to a $7.5 million provision for credit losses recorded during the twelve months ended December 31, 2024, partially offset by net charge-offs of $4.1 million, mainly attributable to commercial and industrial loans, during the same period.

The Company’s ratio of nonperforming loans to loans held for investment decreased from 0.06% at December 31, 2023 to 0.05% at December 31, 2024. Loans designated as watch increased from $39.6 million to $123.4 million between December 31, 2023 and December 31, 2024. Loans designated as substandard increased from $2.0 million to $2.6 million between December 31, 2023 and December 31, 2024. There were no loans with doubtful risk grades at December 31, 2024 or December 31, 2023.

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

	December 31, 2024				December 31, 2023
(in thousands)	Amount		% of Total		Amount		% of Total
Real estate:
Commercial	$	25,864	68.44	%	$	29,015	84.27	%
Commercial land and development		78	0.21	%		178	0.52	%
Commercial construction		2,268	6.00	%		718	2.08	%
Residential construction		64	0.17	%		89	0.26	%
Residential		270	0.71	%		151	0.44	%
Farmland		607	1.61	%		399	1.16	%
		29,151	77.14	%		30,550	88.73	%
Commercial:
Secured		5,866	15.52	%		3,314	9.62	%
Unsecured		278	0.74	%		189	0.55	%
		6,144	16.26	%		3,503	10.17	%
Consumer and other		2,496	6.60	%		378	1.10	%
Total allowance for credit losses	$	37,791	100.00	%	$	34,431	100.00	%

The ratio of allowance for credit losses to loans held for investment was 1.07% at December 31, 2024, as compared to 1.12% at December 31, 2023.

Non-interest Income

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

	Three months ended
(in thousands)	December 31, 2024		September 30, 2024		$ Change			% Change
Service charges on deposit accounts	$	179	$	165	$	14		8.48	%
Gain on sale of loans		150		306		(156	)	(50.98)	%
Loan-related fees		400		406		(6	)	(1.48)	%
FHLB stock dividends		332		327		5		1.53	%
Earnings on bank-owned life insurance		182		162		20		12.35	%
Other income		423		15		408		2,720.00	%
Total non-interest income	$	1,666	$	1,381	$	285		20.64	%

Gain on sale of loans. The decrease related primarily to an overall decline in the volume of loans sold during the three months ended December 31, 2024 compared to the three months ended September 30, 2024. During the three months ended December 31, 2024, approximately $2.0 million of loans were sold with an effective yield of 7.60%, as compared to approximately $4.4 million of loans sold with an effective yield of 7.03% during the three months ended September 30, 2024.

Other income. The increase resulted primarily from $0.3 million of income received on equity investments in venture-backed funds during the three months ended December 31, 2024, combined with a $0.1 million loss from equity investments in venture-backed funds during the three months ended September 30, 2024.

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

	Three months ended
(in thousands)	December 31, 2024		December 31, 2023			$ Change			% Change
Service charges on deposit accounts	$	179	$	165		$	14		8.48	%
Net gain (loss) on sale of securities		—		(167	)		167		(100.00)	%
Gain on sale of loans		150		317			(167	)	(52.68)	%
Loan-related fees		400		667			(267	)	(40.03)	%
FHLB stock dividends		332		314			18		5.73	%
Earnings on bank-owned life insurance		182		155			27		17.42	%
Other income		423		485			(62	)	(12.78)	%
Total non-interest income	$	1,666	$	1,936		$	(270	)	(13.95)	%

Net gain (loss) on sale of securities. The decrease in the net loss on sale of securities related to the sale of two municipal securities with a par value of approximately $0.8 million for a loss of approximately $0.2 million during the three months ended December 31, 2023, with no sales occurring during the three months ended December 31, 2024.

Gain on sale of loans. The decrease resulted from an overall decline in the volume of loans sold during the three months ended December 31, 2024, as compared to the three months ended December 31, 2023. During the three months ended December 31, 2024, approximately $2.0 million of loans were sold with an effective yield of 7.60%, as compared to approximately $5.9 million of loans sold with an effective yield of 5.41% during the three months ended December 31, 2023.

Loan-related fees. The decrease resulted from the recognition of $0.2 million lower rate lock fees and $0.1 million lower swap referral fees during the three months ended December 31, 2024 than the three months ended December 31, 2023.

Non-interest income for the periods indicated:

	Year ended
(in thousands)	December 31, 2024		December 31, 2023			$ Change			% Change
Service charges on deposit accounts	$	721	$	575		$	146		25.39	%
Net gain (loss) on sale of securities		—		(167	)		167		(100.00)	%
Gain on sale of loans		1,274		1,952			(678	)	(34.73)	%
Loan-related fees		1,605		1,719			(114	)	(6.63)	%
FHLB stock dividends		1,320		970			350		36.08	%
Earnings on bank-owned life insurance		644		510			134		26.27	%
Other income		889		1,952			(1,063	)	(54.46)	%
Total non-interest income	$	6,453	$	7,511		$	(1,058	)	(14.09)	%

Service charges on deposit accounts. The increase resulted primarily from a $0.2 million increase in wire transfer fees recognized, partially offset by a small decrease in other fees recognized during the year ended December 31, 2024 compared to the year ended December 31, 2023.

Net gain (loss) on sale of securities. The decrease in the net loss on sale of securities resulted from the sale of two municipal securities with a par value of approximately $0.8 million for a loss of approximately $0.2 million during the year ended December 31, 2023, with no sales occurring during the year ended December 31, 2024.

Gain on sale of loans. The decrease related primarily to an overall decline in the volume of loans sold during the year ended December 31, 2024 compared to the year ended December 31, 2023. During the year ended December 31, 2024, approximately $18.3 million of loans were sold with an effective yield of 6.96%, as compared to approximately $36.5 million of loans sold with an effective yield of 5.35% during the year ended December 31, 2023.

Loan-related fees. The decrease was primarily a result of a $0.2 million net decrease in income earned from the credit card program, partially offset by a small increase in loan fee income earned on various loan types and services.

FHLB stock dividends. The increase primarily relates to a 50 basis point increase in the annualized dividend rate earned year-over-year, while the average shares outstanding remained consistent.

Earnings on bank-owned life insurance. The increase was primarily due to additional policies purchased between December 31, 2024 and December 31, 2023.

Other income. The decrease resulted primarily from $0.5 million in income received on equity investments in venture-backed funds during the year ended December 31, 2024, as compared to $1.7 million in income received on equity investments in venture-back funds during the year ended December 31, 2023.

Non-interest Expense

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

	Three months ended
(in thousands)	December 31, 2024		September 30, 2024		$ Change			% Change
Salaries and employee benefits	$	8,360	$	7,969	$	391		4.91	%
Occupancy and equipment		649		626		23		3.67	%
Data processing and software		1,369		1,327		42		3.17	%
Federal Deposit Insurance Corporation (“FDIC”) insurance		440		405		35		8.64	%
Professional services		774		830		(56	)	(6.75)	%
Advertising and promotional		752		584		168		28.77	%
Loan-related expenses		321		292		29		9.93	%
Other operating expenses		1,823		1,743		80		4.59	%
Total non-interest expense	$	14,488	$	13,776	$	712		5.17	%

Salaries and employee benefits. The increase was primarily a result of: (i) a $0.1 million increase in salaries, benefits, and bonus expense; and (ii) a $0.5 million increase in commissions expense due to higher loan production, net of purchased consumer loans. These increases were partially offset by a $0.2 million increase in loan origination costs due to higher loan production, net of purchased consumer loans, period-over-period.

Advertising and promotional. The increase was primarily due to the timing of events sponsored and attended during the three months ended December 31, 2024 compared to the three months ended September 30, 2024.

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

	Three months ended
(in thousands)	December 31, 2024		December 31, 2023		$ Change		% Change
Salaries and employee benefits	$	8,360	$	7,182	$	1,178	16.40	%
Occupancy and equipment		649		583		66	11.32	%
Data processing and software		1,369		1,110		259	23.33	%
FDIC insurance		440		370		70	18.92	%
Professional services		774		658		116	17.63	%
Advertising and promotional		752		717		35	4.88	%
Loan-related expenses		321		268		53	19.78	%
Other operating expenses		1,823		1,775		48	2.70	%
Total non-interest expense	$	14,488	$	12,663	$	1,825	14.41	%

Salaries and employee benefits. The increase was primarily a result of: (i) a $1.0 million increase in salaries, benefits, and bonus expense, of which approximately $0.8 million related to employees hired to support expansion into the San Francisco Bay Area; and (ii) a $0.7 million increase in commissions expense due to higher loan production, net of purchased consumer loans. These increases were partially offset by a $0.5 million increase in loan origination costs due to higher loan production, net of purchased consumer loans, period-over-period.

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

Professional services. The increase was primarily due to increased audit and examination fees for services provided for the three months ended December 31, 2024 compared to the three months ended December 31, 2023.

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

	Year ended
(in thousands)	December 31, 2024		December 31, 2023		$ Change		% Change
Salaries and employee benefits	$	31,709	$	27,097	$	4,612	17.02	%
Occupancy and equipment		2,547		2,218		329	14.83	%
Data processing and software		5,088		4,015		1,073	26.72	%
FDIC insurance		1,635		1,557		78	5.01	%
Professional services		3,078		2,575		503	19.53	%
Advertising and promotional		2,411		2,403		8	0.33	%
Loan-related expenses		1,207		1,192		15	1.26	%
Other operating expenses		6,818		6,718		100	1.49	%
Total non-interest expense	$	54,493	$	47,775	$	6,718	14.06	%

Salaries and employee benefits. The increase was the result of: (i) a $3.5 million increase in salaries, benefits, and bonus, of which approximately $3.3 million related to employees hired to support expansion into the San Francisco Bay Area; and (ii) a $1.4 million increase in commissions paid, primarily to employees in the San Francisco Bay Area. The increase was partially offset by a $0.3 million increase in loan origination costs due to higher loan production, net of purchased consumer loans, period-over-period.

Occupancy and equipment. The increase related to rent expense for the San Francisco branch office and a new office lease to support back office staff during the year ended December 31, 2024, which did not exist for the full year ended December 31, 2023.

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

Professional services. The increase was due to an increase in audit, IT support, and other consulting fees for services provided for the year ended December 31, 2024 compared to the year ended December 31, 2023.

Other operating expenses. The increase is primarily related to a $0.2 million increase in IntraFi Network fees resulting from an overall increase in balances carried in the network, partially offset by a $0.1 million decrease in conference and training expenses.

Provision for Income Taxes

Three months ended December 31, 2024, as compared to the three months ended September 30, 2024

Provision for income taxes for the quarter ended December 31, 2024 increased by $1.8 million, or 40.70%, to $6.1 million, as compared to $4.3 million for the quarter ended September 30, 2024, which was primarily due to: (i) the increase in taxable income recognized during the three months ended December 31, 2024; and (ii) a $0.6 million provision to return true-up recorded during the three months ended December 31, 2024 related primarily to the timing of recognition of low income housing tax credits, which did not occur during the three months ended September 30, 2024. The effective tax rate was 31.24% and 28.21% for the three months ended December 31, 2024 and September 30, 2024, respectively.

Three months ended December 31, 2024, as compared to the three months ended December 31, 2023

Provision for income taxes increased by $1.7 million, or 39.02%, to $6.1 million for the three months ended December 31, 2024, as compared to $4.4 million for the three months ended December 31, 2023. This increase is due to: (i) the increase in taxable income for the three months ended December 31, 2024 compared to the three months ended December 31, 2023; and (ii) a $0.6 million provision to return true-up recorded during the three months ended December 31, 2024 related primarily to the timing of recognition of low income housing tax credits, which did not occur during the three months ended December 31, 2023. The effective tax rate was 31.24% and 28.72% for the three months ended December 31, 2024 and December 31, 2023, respectively.

Year ended December 31, 2024, as compared to the year ended December 31, 2023

Provision for income taxes increased by $0.2 million, or 0.89%, to $19.1 million for the year ended December 31, 2024, as compared to $18.9 million for the year ended December 31, 2023. This increase is due to a $0.6 million provision to return true-up recorded during the year ended December 31, 2024, partially offset by a decline in taxable income year-over-year. The effective tax rate was 29.43% and 28.34% for the years ended December 31, 2024 and December 31, 2023, respectively.

Webcast Details

Five Star Bancorp will host a live webcast for analysts and investors on Tuesday, January 28, 2025, at 1:00 pm ET (10:00 am PT), to discuss its fourth quarter and annual financial results. To view the live webcast, visit the “News & Events” section of the Company’s website under “Events” at https://investors.fivestarbank.com/news-events/events. The webcast will be archived on the Company’s website for a period of 90 days.

About Five Star Bancorp

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

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company’s beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. The Company cautions that the forward-looking statements are based largely on the Company’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company’s control) and are subject to risks and uncertainties, which change over time, and other factors, which could cause actual results to differ materially from those currently anticipated. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. If one or more of the factors affecting the Company’s forward-looking information and statements proves incorrect, then the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, the Company cautions you not to place undue reliance on the Company’s forward-looking information and statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and Quarterly Reports on Form 10-Q for the three months ended March 31, 2024, June 30, 2024, and September 30, 2024, in each case under the section entitled “Risk Factors,” and other documents filed by the Company with the Securities and Exchange Commission from time to time.

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

Condensed Financial Data (Unaudited)

	Three months ended
(in thousands, except per share and share data)	December 31, 2024			September 30, 2024			December 31, 2023
Revenue and Expense Data
Interest and fee income	$	57,745		$	52,667		$	46,180
Interest expense		24,256			22,281			19,502
Net interest income		33,489			30,386			26,678
Provision for credit losses		1,300			2,750			800
Net interest income after provision		32,189			27,636			25,878
Non-interest income:
Service charges on deposit accounts		179			165			165
Net gain (loss) on sale of securities		—			—			(167	)
Gain on sale of loans		150			306			317
Loan-related fees		400			406			667
FHLB stock dividends		332			327			314
Earnings on bank-owned life insurance		182			162			155
Other income		423			15			485
Total non-interest income		1,666			1,381			1,936
Non-interest expense:
Salaries and employee benefits		8,360			7,969			7,182
Occupancy and equipment		649			626			583
Data processing and software		1,369			1,327			1,110
FDIC insurance		440			405			370
Professional services		774			830			658
Advertising and promotional		752			584			717
Loan-related expenses		321			292			268
Other operating expenses		1,823			1,743			1,775
Total non-interest expense		14,488			13,776			12,663
Income before provision for income taxes		19,367			15,241			15,151
Provision for income taxes		6,050			4,300			4,352
Net income	$	13,317		$	10,941		$	10,799

Comprehensive Income
Net income	$	13,317		$	10,941		$	10,799
Net unrealized holding (loss) gain on securities available-for-sale during the period		(3,747	)		3,549			5,744
Reclassification for net loss on sale of securities included in net income		—			—			167
Less: Income tax (benefit) expense related to other comprehensive (loss) income		(1,108	)		1,049			1,747
Other comprehensive (loss) income		(2,639	)		2,500			4,164
Total comprehensive income	$	10,678		$	13,441		$	14,963

Share and Per Share Data
Earnings per common share:
Basic	$	0.63		$	0.52		$	0.63
Diluted	$	0.63		$	0.52		$	0.63
Book value per share	$	18.60		$	18.29		$	16.56
Tangible book value per share⁽¹⁾	$	18.60		$	18.29		$	16.56
Weighted average basic common shares outstanding		21,182,143			21,182,143			17,175,445
Weighted average diluted common shares outstanding		21,235,318			21,232,758			17,193,114
Shares outstanding at end of period		21,319,083			21,319,583			17,256,989

Credit Quality
Allowance for credit losses to period end nonperforming loans		2,101.78	%		2,041.44	%		1,752.70	%
Nonperforming loans to loans held for investment		0.05	%		0.05	%		0.06	%
Nonperforming assets to total assets		0.05	%		0.05	%		0.05	%
Nonperforming loans plus performing loan modifications to loans held for investment		0.05	%		0.05	%		0.06	%

Selected Financial Ratios
ROAA		1.31	%		1.18	%		1.26	%
ROAE		13.48	%		11.31	%		15.45	%
Net interest margin		3.36	%		3.37	%		3.19	%
Loan to deposit		99.38	%		101.87	%		102.19	%

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

	Year ended
(in thousands, except per share and share data)	December 31, 2024			December 31, 2023
Revenue and Expense Data
Interest and fee income	$	206,951		$	174,382
Interest expense		87,240			63,502
Net interest income		119,711			110,880
Provision for credit losses		6,950			4,000
Net interest income after provision		112,761			106,880
Non-interest income:
Service charges on deposit accounts		721			575
Net gain (loss) on sale of securities		—			(167	)
Gain on sale of loans		1,274			1,952
Loan-related fees		1,605			1,719
FHLB stock dividends		1,320			970
Earnings on bank-owned life insurance		644			510
Other income		889			1,952
Total non-interest income		6,453			7,511
Non-interest expense:
Salaries and employee benefits		31,709			27,097
Occupancy and equipment		2,547			2,218
Data processing and software		5,088			4,015
FDIC insurance		1,635			1,557
Professional services		3,078			2,575
Advertising and promotional		2,411			2,403
Loan-related expenses		1,207			1,192
Other operating expenses		6,818			6,718
Total non-interest expense		54,493			47,775
Income before provision for income taxes		64,721			66,616
Provision for income taxes		19,050			18,882
Net income	$	45,671		$	47,734

Comprehensive Income
Net income	$	45,671		$	47,734
Net unrealized holding (loss) gain on securities available-for-sale during the period		(858	)		2,228
Reclassification for net loss on sale of securities included in net income		—			167
Less: Income tax (benefit) expense related to other comprehensive (loss) income		(254	)		708
Other comprehensive (loss) income		(604	)		1,687
Total comprehensive income	$	45,067		$	49,421

Share and Per Share Data
Earnings per common share:
Basic	$	2.26		$	2.78
Diluted	$	2.26		$	2.78
Book value per share	$	18.60		$	16.56
Tangible book value per share⁽¹⁾	$	18.60		$	16.56
Weighted average basic common shares outstanding		20,154,385			17,166,592
Weighted average diluted common shares outstanding		20,205,440			17,187,969
Shares outstanding at end of period		21,319,083			17,256,989

Credit Quality
Allowance for credit losses to period end nonperforming loans		2,101.78	%		1,752.70	%
Nonperforming loans to loans held for investment		0.05	%		0.06	%
Nonperforming assets to total assets		0.05	%		0.05	%
Nonperforming loans plus performing loan modifications to loans held for investment		0.05	%		0.06	%

Selected Financial Ratios
ROAA		1.23	%		1.44	%
ROAE		12.72	%		17.85	%
Net interest margin		3.32	%		3.42	%
Loan to deposit		99.38	%		102.19	%

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

(in thousands)	December 31, 2024			September 30, 2024			December 31, 2023
Balance Sheet Data
Cash and due from financial institutions	$	33,882		$	44,531		$	26,986
Interest-bearing deposits in banks		318,461			206,321			294,590
Time deposits in banks		4,121			4,118			5,858
Securities – available-for-sale, at fair value		98,194			104,238			108,083
Securities – held-to-maturity, at amortized cost		2,720			2,720			3,077
Loans held for sale		3,247			2,910			11,464
Loans held for investment		3,532,686			3,460,565			3,081,719
Allowance for credit losses		(37,791	)		(37,583	)		(34,431	)
Loans held for investment, net of allowance for credit losses		3,494,895			3,422,982			3,047,288
FHLB stock		15,000			15,000			15,000
Operating leases, right-of-use asset		6,245			6,590			5,284
Premises and equipment, net		1,584			1,657			1,623
Bank-owned life insurance		19,375			19,192			17,180
Interest receivable and other assets		55,554			56,745			56,692
Total assets	$	4,053,278		$	3,887,004		$	3,593,125

Non-interest-bearing deposits	$	922,629		$	906,939		$	831,101
Interest-bearing deposits		2,635,365			2,493,040			2,195,795
Total deposits		3,557,994			3,399,979			3,026,896
Subordinated notes, net		73,895			73,859			73,749
Other borrowings		—			—			170,000
Operating lease liability		6,857			7,101			5,603
Interest payable and other liabilities		17,908			16,135			31,103
Total liabilities		3,656,654			3,497,074			3,307,351

Common stock		302,531			302,251			220,505
Retained earnings		106,464			97,411			77,036
Accumulated other comprehensive loss, net of taxes		(12,371	)		(9,732	)		(11,767	)
Total shareholders’ equity		396,624			389,930			285,774
Total liabilities and shareholders’ equity	$	4,053,278		$	3,887,004		$	3,593,125

Quarterly Average Balance Data
Average loans held for investment and sale	$	3,498,109		$	3,354,050		$	3,055,042
Average interest-earning assets		3,965,867			3,586,572			3,319,300
Average total assets		4,057,603			3,678,537			3,399,660
Average deposits		3,561,409			3,184,795			3,009,078
Average total equity		393,088			384,692			277,295

Capital Ratios
Total shareholders’ equity to total assets		9.79	%		10.03	%		7.95	%
Tangible shareholders’ equity to tangible assets⁽¹⁾		9.79	%		10.03	%		7.95	%
Total capital (to risk-weighted assets)		13.99	%		13.94	%		12.30	%
Tier 1 capital (to risk-weighted assets)		11.02	%		10.93	%		9.07	%
Common equity Tier 1 capital (to risk-weighted assets)		11.02	%		10.93	%		9.07	%
Tier 1 leverage ratio		10.05	%		10.83	%		8.73	%

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

Non-GAAP Reconciliation (Unaudited)

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

Tangible shareholders’ equity to tangible assets is defined as total equity less goodwill and other intangible assets, divided by total assets less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholders’ equity to total assets. We had no goodwill or other intangible assets at the end of any period indicated. As a result, tangible shareholders’ equity to tangible assets is the same as total shareholders’ equity to total assets at the end of each of the periods indicated.

Tangible book value per share is defined as total shareholders’ equity less goodwill and other intangible assets, divided by the outstanding number of common shares at the end of the period. The most directly comparable GAAP financial measure is book value per share. We had no goodwill or other intangible assets at the end of any period indicated. As a result, tangible book value per share is the same as book value per share at the end of each of the periods indicated.

Pre-tax, pre-provision income is defined as pre-tax income plus provision for credit losses. The most directly comparable GAAP financial measure is pre-tax income.

The following reconciliation tables provide a more detailed analysis of this non-GAAP financial measure:

	Three months ended
(in thousands)	December 31, 2024		September 30, 2024		December 31, 2023
Pre-tax, pre-provision income
Pre-tax income	$	19,367	$	15,241	$	15,151
Add: provision for credit losses		1,300		2,750		800
Pre-tax, pre-provision income	$	20,667	$	17,991	$	15,951

	Year ended
(in thousands)	December 31, 2024		December 31, 2023
Pre-tax, pre-provision income
Pre-tax income	$	64,721	$	66,616
Add: provision for credit losses		6,950		4,000
Pre-tax, pre-provision income	$	71,671	$	70,616

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

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

The MIL Network –

January 28, 2025

MIL-OSI USA: Welch Convenes Businesses, State Officials to Talk Trump’s Tariffs Threats and the Impact on Vermont’s Local Economy, Hardworking Families

US Senate News:

Source: United States Senator Peter Welch (D-Vermont)
ST. ALBANS, VT – Today, U.S. Senator Peter Welch (D-Vt.), a member of the Senate Finance Committee, convened Vermont businesses and state and local leaders for a roundtable discussion on President Trump’s threats to reignite a trade war with Canada and other U.S. trade allies by imposing dramatic tariffs on goods imported from Canada. Senator Welch advocated for a ‘Do No Harm’ policy approach and warned against imposing tariffs that get passed on to the consumer—Vermont families.
“We saw the harmful impact of the Trump Tariffs during his first term, and we can’t accept a return to that chaotic trade policy. Canada is Vermont’s biggest trading partner, and one of our most important allies nationally. Our trade relationship needs to be strong, because the success of hardworking families, businesses, farms, and manufacturers depends on it,” said Senator Welch. “President Trump’s plans are still unknown, but what we do know today is that a trade war is not the answer. We need a ‘Do No Harm’ policy. This is about jobs, and this is about the consistency Vermont businesses deserve. I’ll advocate in Washington for Vermonters, and push for open markets, which are necessary to keep our economy strong.”
Senator Welch was joined by leaders in the technology, agriculture, energy, services, construction and manufacturing industries. Participants talked about the importance of Canada as an economic partner for Vermont’s local communities, and how the proposed Trump Tariffs could be detrimental to the state’s businesses, farms, and manufacturers, leading to higher costs for hardworking families.
View photos from the event below:
Sen. Welch was joined today by the Vermont Chamber of Commerce; the Vermont Association of General Contractors; Manufacturing Solutions, Inc.; H20 Innovation; A.N. Deringer, Inc.; Poulin Grain; Green Mountain Power; Vermont State Treasurer Mike Pieciak; Brett Long, Deputy Commissioner, Vermont Department of Economic Development; and Tim Smith, Mayor, St. Albans.
Attendees at the roundtable spoke about the impact of the tariffs on their businesses and their concerns regarding President Trump’s rhetoric regarding trade since taking office last week. In many cases, Vermont manufacturers buy inputs from Canada to manufacture into products. However, the ability of Vermont’s small manufacturing businesses to absorb a 25% increase in costs on parts or raw materials is limited. If President Trump follows through on his threats of a 25% tariff on Canada and Mexico, Vermonters could see higher homebuilding costs, increased costs of grain for farmers, more expensive equipment for maple producers, and costlier electricity.
The tariffs could also further exacerbate inequalities found within the current U.S. tax system. As trade wars accelerate, some families—especially those with young children—end up being disproportionately impacted by high tariffs, as the U.S. imports 97% of clothing, and infant formulas are hit by tariffs of 17.5%.

MIL OSI USA News –

January 28, 2025

MIL-OSI USA: Tuberville Gets Gavel to Key Armed Services Subcommittee

US Senate News:

Source: United States Senator for Alabama Tommy Tuberville
WASHINGTON – U.S. Senator Tommy Tuberville (R-AL) was announced as Chairman of the Senate Armed Services Subcommittee on Personnel. As the leader of this subcommittee, Sen. Tuberville will lead the charge on staffing key Department of Defense (DOD) military and civilian personnel, policies, compensation and benefits, and military nominations. He will provide oversight on a wide range of military budget accounts and various DOD offices and agencies. His work will ensure servicemembers are taken care of both while in service and in the years following.
Alabama is home to over 13,000 active-duty military members, over 25,000 National Guard and reserve members, nearly 400,000 veterans, and five military bases. As Chairman, he will be an advocate for these servicemembers by ensuring they have the best resources and care possible.
Sen. Tuberville made the following statement about his appointment as Chairman of the Subcommittee on Personnel:
“As Alabama’s voice on the Senate Armed Services Committee, I’m honored to be the Chairman of the Subcommittee on Personnel. As the son of a World War II veteran, I know firsthand the sacrifices that our men and women in uniform make for our country. I will see to it that military personnel are well-compensated and get the benefits they deserve—it’s the least we can do. As Pete Hegseth assembles his team at the Pentagon, we will work tirelessly to make sure they have the support and personnel they need to implement President Trump’s America First agenda and restore peace through strength. As Chairman, I will be laser-focused on enhancing the quality of life for our brave military personnel both during and after their time in service so we can ensure our military remains the most lethal fighting force in the world.”
Subcommittee on Sea Power:
As a member of the Subcommittee on Seapower, Sen. Tuberville will continue his work to restore America’s naval superiority and promote Alabama’s shipbuilding and maritime industries. The United States Constitution charges Congress with providing and maintaining a Navy, which our founders saw as critical to the nation’s economic power and the freedoms we enjoy.
Sen. Tuberville’s position on these subcommittees will enable him to work on these Alabama-related issues:
Bolstering Alabama’s maritime investment in the Port of Mobile.
Advancing his work to build our Navy fleet to compete with foreign adversaries.
Utilizing key shipbuilding industries like Austal in Mobile.
Subcommittee on Strategic Forces:Since the Subcommittee on Strategic Forces has jurisdiction over U.S. Space Command (SPACECOM), retaining his role on this subcommittee was one of Sen. Tuberville’s top priorities. Sen. Tuberville has led calls for the U.S. Air Force to act on its recommendation to place SPACECOM at Redstone Arsenal in Huntsville, and he is well-positioned to lead the entire Alabama delegation in supporting a smooth transition. This subcommittee also oversees America’s Missile Defense Agency, a responsibility Sen. Tuberville will leverage to protect every American.
Responsibilities: Nuclear and strategic forces; arms control and non-proliferation programs; space programs; Department of Energy defense nuclear and defense environmental management programs; and ballistic missile defense.
Oversight of budget accounts: Procurement and RDT&E for DOD nuclear and strategic forces, missile defense, space systems, Department of Energy defense and non-proliferation programs.
Oversight of DOD and DOE officials: Assistant Secretary of Defense for Nuclear and Chemical and Biological Defense Programs; National Nuclear Security Administration; and Assistant Secretary of Energy (Environmental Management).
Oversight of agencies, commands, and activities: U.S. Strategic Command; U.S. Space Command, U.S. Space Force as well as other components of the military departments; Space Development Agency; Missile Defense Agency; National Nuclear Security Administration; Defense Nuclear Facilities Safety Board; and Defense Threat Reduction Agency.
Sen. Tuberville’s service on all three subcommittees will be crucial in empowering Alabama’s military installations across the state.
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

MIL OSI USA News –

January 28, 2025

MIL-OSI USA: WATCH: Senator Reverend Warnock Pushes for Key Commitments from Agriculture Nominee to Support Georgia Farmers and Families

US Senate News:

Source: United States Senator Reverend Raphael Warnock – Georgia

WATCH: Senator Reverend Warnock Pushes for Key Commitments from Agriculture Nominee to Support Georgia Farmers and Families

At today’s Senate Agriculture committee hearing, Senator Reverend Warnock questioned Brooke Rollins, President Trump’s nominee to run the United States Department of Agriculture (USDA)
Senator Reverend Warnock pushed for key commitments to ensure disaster assistance is distributed both swiftly and equitably, Georgia farmers are protected from the high costs associated with trade wars, and more
Following the catastrophic damage of Hurricane Helene in September 2024, Senator Reverend Warnock helped secure nearly $21 billion in disaster relief funding for farmers as well as $10 billion in economic assistance for row crops farmers, including cotton and peanut farmers in Georgia; if confirmed, Ms. Rollins will oversee the distribution of this funding
Senator Reverend Warnock also pushed Rollins on how she would protect Georgia farmers from high costs associated with trade wars and expanding market access
Senator Reverend Warnock: “Farmers, as you know, do incredible work. It’s a tough business. There’s so much you don’t control. The margins are narrow, and so I do everything I can to protect my growers in Georgia. I cannot overstate how critical it is for USDA to distribute this assistance, this disaster assistance to Georgia farmers as quickly as possible–but also as equitably as possible. If confirmed, how will you work to ensure disaster assistance is distributed both swiftly and equitably?”
Senator Reverend Warnock: “Farmers in Georgia are already concerned about potential retaliatory actions following President Trump’s promises to levy heavy tariffs. They are already dealing with slim margins due to high input costs, and the last thing they need is to be caught in the middle of a trade war that could drive-up food prices for all of us”

Watch Senator Reverend Warnock at Thursday’s Agriculture nominee hearing HERE and HERE
Washington, D.C. – Today, during a U.S. Senate Agriculture committee hearing on the nomination of Brooke Rollins to lead the United States Department of Agriculture (USDA), U.S. Senator Reverend Raphael Warnock (D-GA) pushed for key commitments from Rollins to ensure disaster assistance is distributed both swiftly and equitably, Georgia farmers are protected from the high costs associated with trade wars, and more. The Senator also pushed Rollins to commit to protecting Fort Valley State’s partnership with USDA and to removing red tape from low-income children and families receiving nutrition benefits.
If confirmed, Rollins would oversee USDA’s rollout of disaster funding for farmers Senator Warnock secured in December. Following the catastrophic damage of Hurricane Helene in September 2024, Senator Warnock fought for the inclusion of agricultural disaster funding in any end-of-year government funding package, which included nearly $21 billion in disaster relief funding for farmers as well as $10 billion in economic assistance for row crops farmers, including cotton and peanut farmers in Georgia.
“Farmers, as you know, do incredible work. It’s a tough business. There’s so much you don’t control. The margins are narrow, and so I do everything I can to protect my growers in Georgia. I cannot overstate how critical it is for USDA to distribute this assistance, this disaster assistance to Georgia farmers as quickly as possible–but also as equitably as possible. If confirmed, how will you work to ensure disaster assistance is distributed both swiftly and equitably?,” Senator Reverend Warnock asked.
As a veteran member of the Senate committee overseeing federal agriculture policies, and as a senator representing a state with a proud and prosperous history of agriculture excellence, Senator Warnock is vigilant in defending programs that help Georgia farmers keep more profits in their pockets and keep the industry at the frontlines of Georgia’s success.
“Farmers in Georgia are already concerned about potential retaliatory actions following President Trump’s promises to levy heavy tariffs. They are already dealing with slim margins due to high input costs, and the last thing they need is to be caught in the middle of a trade war that could drive-up food prices for all of us. If confirmed, what will you do from your position at USDA to ensure that Georgia’s farmers and families aren’t caught up in a trade war? It’s something I have worked on with Republicans, helping to get our farmers’ goods to market, it’s something we think about a lot,” said Senator Reverend Warnock.
Watch the first part of the Senator’s remarks HERE and the second part HERE.
See below a transcript of key exchanges between Senator Warnock and USDA nominee Brooke Rollins (remarks have been lightly edited for clarity):
On federal disaster assistance for Georgia farmers
SRW: Last year I worked hard with my colleagues in a bipartisan manner to provide $21 billion to help farmers recover from natural disasters like Hurricane Helene. Farmers, as you know, do incredible work. It’s a tough business. There’s so much you don’t control. The margins are narrow, and so I do everything I can to protect my growers in Georgia. I cannot overstate how critical it is for USDA to distribute this assistance, this disaster assistance to Georgia farmers as quickly as possible–but also as equitably as possible. If confirmed, how will you work to ensure disaster assistance is distributed both swiftly and equitably?
Brooke Rollins (BR): Yes sir, thank you, and I’ll try to answer quickly so we can go on. The day I got the call from President Trump, it was Saturday, November 23rd. We were in our motorhome traveling across the country to an Aggie football game. Within a few hours of accepting the nomination, I began to immediately pivot to how we distribute this disaster and so important economic aid working with a few of the senators on this committee. Clearly I am not confirmed yet, so this is going to await my arrival. But in the meantime, sir, we’ve already announced the undersecretary who worked on this in the last Trump administration who is already building the team who distributed these funds so they know what they’re doing. We’re not reinventing the wheel.
SRW: Will you work with our state agriculture commissioner to ensure Georgia producers, including our foresters, have the support they need from USDA to get that assistance without having to jump through a bunch of bureaucratic hoops?
BR: Of course.
SRW: And will you also commit to equitably getting that assistance to all eligible farmers, all eligible farmers, including those who’ve been historically left out of USDA assistance, often due to discrimination.
BR: Sir, we will follow the law and ensure that that is the case.
SRW: Is that a yes or a no?
BR: Yes.
On protecting Georgia farmers from costs of trade wars
SRW: Farmers in Georgia are already concerned about potential retaliatory actions following President Trump’s promises to levy heavy tariffs. They are already dealing with slim margins due to high input costs, and the last thing they need is to be caught in the middle of a trade war that could drive-up food prices for all of us. If confirmed, what will you do from your position at USDA to ensure that Georgia’s farmers and families aren’t caught up in a trade war? It’s something I have worked on with Republicans, helping to get our farmers’ goods to market, it’s something we think about a lot.
BR: When I was in your office last month we talked about your commitment to your farmers and what a priority this was to you. Georgia is a very important agricultural state. You’re obviously pastoring in a church and in the United States Senate, but I was impressed at your commitment to your ag community in your state and look forward to continuing to work with you. It’s very clear the coming tariffs, and I think there is no doubt President Trump has been very transparent that he believes this is an extremely important tool in his toolkit to put America first, to revive the economy, to get us back to a place where he believes we need to be, and I agree with him and hope to help him execute that vision. But it also should not be surprising that his heart and his commitment to our farmers and our agriculture community was certainly clear in the last administration. The number one answer from my perspective is working around the clock to expand market access and working on new trade deals and getting new partners from around the world. I already have an undersecretary named, hopefully get him confirmed, so we can begin to build those teams. The president is a consummate dealmaker, and I feel very confident we will be able to expand those markets, begin to peel back the trade deficit, and get back to trade surpluses. But immediately moving into the distribution of disaster relief, economic relief, the new farm bill that’s coming out, I’ve already announced the undersecretary and put the team in place to be able to deploy that.
SRW: I agree with you that access to farm markets is critical and in Georgia we’ve got a lot of sectors that are relying on strong export markets: timber, poultry, pecans. Are you concerned that isolationist trade practices may harm our abilities, our farmers’ ability to access these foreign markets?
BR: I have full confidence in President Trump’s ability to lead us on this, and, and hopefully he and many of you have confidence in my ability to help from the ag perspective.
On supporting 1890 land grant institutions
SRW: Ms. Rollins, good morning and welcome to you and to your family and all those who are here to support you and congratulations on your nomination. I enjoyed meeting with you last month to discuss your nomination and plans for USDA, and this morning I’d just like to follow up on some of the issues, many of which we’ve already discussed. But first, it has come to my attention that a recent executive order has led to the potential termination of USDA’s liaisons to our 1890 land grant institutions, institutions like Fort Valley State University in Fort Valley, Georgia. There’s strong bipartisan support for these institutions. They’ve done an incredible job, often doing so much for so many with so very little for such a long time that it’s lost on people the work these institutions do every day. I’m deeply concerned about this and the actions to shut out their voices at USDA. Ms. Rollins, if you are confirmed, will you commit to supporting our 1890 institutions?
BR: I am not familiar with exactly what you’re speaking of, but my commitment to you is to find out and to continue a really important discussion and to learn more about the issue.
SRW: Well the executive order could lead to the potential termination of USDA’s liaisons to these 1890 institutions which helped them to navigate their relationship with the USDA. Can I have your commitment to protect those who serve these institutions at the USDA?
BR: Again, sir, I would want to know more and understand more before I can make that commitment, but clearly, those institutions are important. They are bipartisan supported, and you have my commitment to have a very robust dialogue at any moment, any time of day or night, to ensure that we have all the data as we’re making any decisions.
SRW: I appreciate that. I’ve had good relationships and good work, bipartisan work, supporting these institutions, and I hope you’ll keep your eye on that issue.
BR: I will.
On fighting hunger and protecting nutritional benefits
SRW: Fighting hunger has long been a part of my life’s work long before I was elected to the Senate. As you know, I’m a pastor, and the one miracle story that’s in all the gospels, all four, is the feeding of the 5000. And so I constantly hear from Georgia families about how their dollar just doesn’t go as far at the grocery store as it used to. The average Georgian participating in SNAP, a food assistance program that provides critical nutrition, aid to our most vulnerable families, has about $6.15 a day to spend on food. In your view, is $6.15 a day adequate to avoid hunger for Georgia families.
BR: Sir, this is a supplemental program. I am just getting my arms around it. There are few that will be in my role, if confirmed, that have a passion for this more than I do. Serving those who are most in need, as you and I discussed in your office, is a driving force of my entire life. It almost sent me to seminary, but I ended up in public policy instead, so you have my wholehearted commitment to look and ensure that the people who need this the most are receiving it in the best way possible, but at the same time ensuring that all of the tax dollars that are spent on it are also spent in the best way possible.
SRW: One of the things as these families struggle, one of the things that I’m concerned about are proposals to slash this critical assistance and create additional work verification red tape for families participating in these programs. Do you think creating more bureaucratic red tape for families will help them purchase nutritious food?
BR: I think it’s extremely important that we take a wholesale look at every one of these programs and ensure that they are serving the people that are needing the programs and that they are the safety net that they truly set out to be. Obviously I do not like the words bureaucracy or red tape, but ensuring that we have set up the appropriate lifelines and the appropriate structure so that we can get these resources to the families that need them the most.
SRW: As we talk about work requirements, and I support work, I was raised by a father and a mother who had a serious work ethic, but we want to help these families have a basic safety net. Most poor people are children. I think it’s important to remember that most poor people are children. SNAP lifts children, seniors, veterans, and folks with disabilities out of poverty, and it’s proven to reduce health care costs and stimulate our local economies. If you’re confirmed, I hope we can find ways to work together to ensure our most vulnerable families and our neighbors can afford groceries. I think, as someone who preaches the miracle of the feeding of 5000, I think it’s the right thing to do, but I also think it’s a smart thing to do.
BR: Yes sir, you have my commitment.
On combating the history of racial discrimination in USDA
SRW: USDA has a long documented and unfortunate history of racial discrimination, even recent history. I was proud to have secured funding in the Inflation Reduction Act to provide financial assistance to farmers who had previously experienced discrimination at the hands of their USDA farm lending programs. This was a meaningful step in rebuilding trust. However, USDA still has a lot of work to do and this will only be more difficult following the new administration’s executive order aimed at rolling back all of this progress. I was proud Congress passed my legislation in 2021 to require USDA to create an equity commission, and the commission’s final report provides an excellent road map for continuing this work. Chair Boozman, without objection, I would like to enter the USDA’s 2024 equity report into the record. Thank you so much. When we met last month, you promised to read the equity report. Have you gotten a chance to read it yet?
BR: 90 pages and 66 recommendations. Yes, sir. Now that has been about a little over a month ago, so please don’t ask me to quote page 66, but yes.
SRW: I’m glad you got a chance to read it. I understand it’s been removed from the website or there’s no access to it. I’m glad you got a chance to read it. Will you seriously consider the recommendations of the equity commission’s report if you’re confirmed?
BR: Senator, let me answer this way. I was really appreciative of the conversation. For me, more knowledge is always best, understanding where everyone comes from, whether I agree or disagree, recognizing what’s in the past is important, but also realizing the path ahead and how we forge the path…
SRW: Will you consider the recommendations?
BR: Sir, I will consider anything that’s on the table. I think that’s only fair, but also, President Trump won on the concept of removing the diversity, equity and inclusion, making sure that we are basing our decisions on merit, and I obviously support that 100% as well, but I look forward, Senator, to continuing to talk about this. My friend Alveda has long talked to me about the plight of black farmers in Georgia and other places around the country, and I’m always open to discussions, always, and may I say there is no room for racism at the United States Department of Agriculture.
SRW: In that regard, will you commit to recruiting more diverse employees who understand these communities, have relationships with these communities, so that we build trust between these communities and the lending office?
BR: Sir, my commitment is to recruit the best workforce in the history of the United States Department of Agriculture, period, full stop. I believe that will include many members of all different corners of our country.
SRW: Do you think a diverse workforce and a high-quality workforce are somehow oppositional objectives?
BR: I think always hiring based on who is the best person for the job, who is gonna do the most excellent service, who is best equipped to execute on all of the promises is the promise of America, but I also believe to your point and have long held that ensuring that we give all people a chance to succeed and to thrive and for equal opportunity is a bedrock foundational principle of America.

MIL OSI USA News –

January 28, 2025

MIL-OSI New Zealand: The State of the Nation

Source: ACT Party

The Haps

Public hearings for the Treaty Principles Bill have begun. David Seymour kicked off proceedings, throwing down the gauntlet on equal rights and fielding questions from hostile MPs. His submission to the Justice Committee is a must-watch.

Even people who say there should be no bill seem to want the debate. The hearings are a major milestone for New Zealand, it is now possible for ordinary people to go to Parliament and say they are equal.

The State of the Nation

David Seymour’s 2025 State of the Nation speech has been overwhelmed with praise from those who attended and watched it online. If you missed it, the video is here and we have reproduced the text below.

Thank you, Brooke, for your kind introduction. I’m biased, but I think you’re the Government’s most quietly effective Minister. Your labour law reforms are making it easier to employ workers and to be employed. Your minimum wage increases are announced early to give business certainty, and relief. You are taking on two of the hardest chestnuts in the workplace – holiday pay and health and safety – by listening to the people affected. You’ve put together an honest Royal Commission on COVID-19, and got wait times down for new passports and Citizenships. All the while you attract growing respect as a hard-working local MP here in Tamaki.

It’s easy to forget Brooke’s 32. She has the biggest future in New Zealand politics.

The only problem with mentioning one ACT MP is they’re all kicking goals with both feet, so you have to mention the lot. Nicole McKee is speeding up the court system, rewriting the entire Arms Act to make New Zealand safer, and reforming anti-money laundering laws so people can business done.

Andrew Hoggard handles the country’s biosecurity, managing would-be outbreaks with steady hands. He is also dealing to Significant Natural Areas that erode farmers’ property rights and correcting the naïve treatment of methane that punishes the whole country.

He’s able to do that in large part because of the work Mark Cameron did, and continues to do. From 2020 onwards he scared the bejesus out of every other party in rural New Zealand. He shifted the whole political spectrum right on the split gas approach, SNAs, and freshwater laws. Now the Government is changing those policies. As Chair of the Primary Production Committee, Mark stays in the headlines championing rural New Zealand every week. He is the definition of an effective MP.

Karen Chhour is the embodiment of ACT values. Her life gives her more excuses than anyone in Parliament, but she makes none, and she accepts none. She is reforming the government department that let her down when she was small. If every New Zealander had Karen’s attitude and values, we’d be a country with no problems.

Perhaps the biggest single policy problem we face is the Resource Management Act. Somone once said you can fill a town hall to stop anything in this country, but you can’t fill a telephone box to get something started. In steps Simon Court who, with Chris Bishop, is designing new resource management laws based on property rights. That’s an ACT policy designed to unleash the latent wealth our country has by letting people develop and use the property they own.

Our new MPs that you helped elect last year are also making their marks. Todd Stephenson has picked up the End of Life Choice baton, with a bill to extend compassion and choice to those who suffer the most: those with long-term, degenerative illnesses. Parmjeet Parmar is one of the hardest working MPs I have seen, and a great chair of the Economic Development, Science and Innovation Committee. Cam Luxton and Laura McClure speak to a new generation of young parents who want their children to grow up in a free society.

If you gave your Party Vote to ACT last year, you can be proud of the New Zealanders you put in Parliament to represent you. I am proud to lead this team of free thinkers in our House of Representatives, and I think we can all be proud of their efforts.

New Zealand’s origin story: a nation of immigrants

The summer is a good time to think about the state of our nation, and I got to thinking about who we are and how we got here. Whatever troubles we may face today, I couldn’t help coming back to something that unites New Zealand.

Our country at its best is a place that welcomes hopeful people from all over the earth. People with different languages, religions and cultures united by one thing. When you look at the map it jumps out at you. We are the most remote country on Earth. If you’ve never stood at Cape Reinga and looked out to see wide open spaces for 10,000 kilometres, you owe it to yourself just once.

It shows that one thing makes us all different from the rest of the world. No matter when or where you came from, you or your ancestors once travelled farther than anyone to give your children and theirs a better tomorrow.

That is the true Kiwi spirit. Taking a leap into the unknown for a chance at better. Compared with what divides us, our spirit as a nation of pioneers unites us ten times over. Migrating from oppression and poverty for freedom and prosperity is what it means to be Kiwi.

If that bright and optimistic side of our psyche, got half as much time as the whinging, we would all be better off. We would see ourselves as people unafraid of challenges, freed from conformity, with the power to decide our best days are always ahead of us.

New Zealand’s inherent tension: two tribes

I got to wondering why that isn’t a more popular story. Why do we cut down tall poppies? Why do we value conformity over truth? Why do people who came here for a better life grow up disappointed and move away again?

I believe our nation is dominated by two invisible tribes. One, I call ‘Change Makers’. People who act out the pioneering spirit that built our country every day. We don’t just believe it is possible to make a difference in our own lives; we believe it’s an obligation.

Change makers load up their mortgage to start a business and give other people jobs. They work the land to feed the world. They save up and buy a home that they maintain for someone else to live in. They study hard to extend themselves. They volunteer and help out where they can. They take each person as they find them. They don’t need to know your ancestry before they know how to treat you.

Too often, they get vilified for all of the above. I know there’s many people like that in this room today. ACT people are Change Makers; we carry the pioneering spirit in our hearts.

Then there’s the other tribe – people building a Majority for Mediocrity. They would love nothing more than to go into lockdown again, make some more sourdough, and worry about the billions in debt another day.

They blame one of the most successful societies in history for every problem they have. They believe that ancestry is destiny. They believe people are responsible for things that happened before they were born, but criminals aren’t responsible for what they did last week.

Far from believing people can make a difference in their own lives, they believe that their troubles are caused by other people’s success. They look for politicians who’ll cut tall poppies down – politicians who say to young New Zealanders ‘if you study hard, get good grades, get a good job, save money, and invest wisely, we’ll tax you harder’.

I wasn’t kidding about the lockdowns; they were a litmus test. In early 2022, after this city had been locked down for months, and the borders had been closed for two years, a pollster asked New Zealanders if they’d like to be locked down again for Omicron.

Now, I know it’s painful to think back, but bear with me. Omicron spread more easily than any earlier variant. It was also less harmful if you caught it. That was especially so because we were then among the most vaccinated nations on earth. The damage to business, education, non-COVID healthcare, and the government’s books was already massive and painful.

And yet, 48 per cent of New Zealanders wanted another lockdown for Omicron. 46 per cent didn’t. That for me put the tribes into sharp relief. If you were a business owner who needed to open, a parent worried about missed education, a migrant missing their family, or just someone who wanted their life back, you wanted to open.

When the Government finally lifted restrictions, many of those people left. Real estate agents report people selling because they’re moving to Australia every day. This is where the balance between these two invisible tribes comes into focus.

Remember the gap in that poll was two per cent. Since the borders opened a net 116,000 citizens have left New Zealand. That’s a touch over two per cent.

A tipping point

The more people with get up and go choose to get up and leave, the less attractive it is for motivated people to stay here.

Muldoon once quipped, ‘New Zealanders who leave for Australia raise the IQ of both countries.’ Actually, New Zealanders who leave for Australia are tipping us towards a Majority for Mediocrity. Motivated New Zealanders leaving is good news for the shoplifters, conspiracy theorists, and hollow men who make up the political opposition.

A few more good people leaving is all they need for their Majority of Mediocrity. The more that aspirational, hardworking people get up and leave New Zealand, the more likely it is we’ll get left-wing governments in the future.

That’s why I say we’re at a tipping point.

There’s another reason why the mediocrity majority is growing, young people feel betrayed and disillusioned.

A new generation looks at the housing market and sees little hope. Imagine you’re someone who’s done it all right, you listened to your teacher and did your homework. You studied for a tertiary education like everyone told you. Now you have $34,000 in debt, you start on $60,000, and you see the average house is 900,000 or fifteen times your (before tax) income.

Nobody can blame a young person for wondering if they aren’t better off overseas. Many decide they are. Those who stay are infected by universities with the woke mind viruses of identity politics, Marxism, and post-modernism.

Feeling like you’ll never own your own capital asset at the same time as some professor left over from the Cold War tells you about Marx is a dangerous combination.

This is the other political tipping point that risks manufacturing a majority for mediocrity. A bad housing market and a woke education system combined are a production line for left-wing voters.

The hard left prey on young New Zealanders. They tell them that their problems are caused by others’ success. That they are held back by their identity, but if they embrace identity politics, they can take back what’s theirs. Their mechanism is a new tax on wealth.

These are the opposite of the spirit brings New Zealanders to our shores in the first place. The state of our nation is that we’re at a tipping point , and what we do in the next few years will decide which way we go.

The short-term outlook is sunny, but only because Labour was so bad.

We can afford to hope that this year will be better than 2024. By that standard, 2025 will be a success. Interest rates will be lower. The Government will have stopped wasting borrowed money, banning things, punishing employers, landlords, farmers, and anyone else trying to make a difference, with another layer of red tape.

In fact, we have a Government that’s saving money, cutting red tape, and paring back identity politics. With those changes we will see more hope than we’ve seen in years, and hopefully a slowdown in citizens leaving. That is good, it’s welcome, and ACT is proud to be part of the coalition Government that’s doing it.

ACT is needed to be brave, articulate, and patriotic

The truth is, though, it’s easy to do a better job of Labour over 12 months. It’s much harder to muster the courage to keep making difficult decisions over several years, even if they’re not immediately popular. Our nation is in a century of decline. Just stopping one Government’s stupid stuff and waiting for a cyclical recovery won’t change the long-term trend. We need to be honest about the challenges we face and the changes needed to overcome them.

We need to act like a country at risk of reaching a tipping point and losing its first world status. We are facing some tough times, and tough times require tough choices to be made.

ACT’s goal is to keep the Government, and make it better. We may have gone into Government, but we never went into groupthink. It’s the role of ACT to be the squeaky wheel, pointing out where the Government needs to do better.

The Government cannot measure itself by just being better than Labour. Instead, we need to ask ourselves, is this policy good enough to make New Zealand a first world country that people want to stay in?

It’s easy to have big plans, we are the world, but charity begins at home. We need to focus only on what the government does, and ensure it does it well.

We need to think carefully about three areas of government activity: spending, owning, and regulating. There is nothing the government does that doesn’t come down to one of those three things.

Why government spends a dollar it has taxed or borrowed, and whether the benefits of that outweigh the costs.

Why government owns an asset, and whether the benefits to citizens outweigh the costs to taxpayers of owning it.

Why a restriction is placed on the use and exchange of private property, and whether the benefits of that regulation outweigh the costs on the property owner.

When it comes to spending, we have a burning platform.

Last year the economy shrunk by one per cent, even as the population grew slightly thanks to births and inbound migration. This year the Government is planning to borrow $17 billion, about $10 billion is for interest on debt, and we’ll have to pay interest on that debt the following year. Next year, government debt will exceed $200 billion.

There lots of reasons why this situation will get harder.

We’ve claimed an exclusive economic zone of four million square kilometres by drawing a circle around every offshore island we could name. We spend less than one per cent of GDP defending it, while our only ally, across the ditch, spends twice that.

Put another way, we’re a country whose government gives out $45 billion in payments each year but spends only $3.2 billion defending the place. Does that sound prudent to you? Doubling defense would cost another $3.2 billion per year, effectively paying more for what we already have. We may face pressure to do just that thanks to US foreign policy.

There’s a tail wind on balancing the books, and it’s affecting every developed country, our population is ageing faster than it’s growing.

Every year around 60,000 people turn sixty-five and become eligible for a pension. To the taxpayer, superannuation expenses increase by $1.4 billion each year.

Healthcare spending has gone from $20 billion to $30 billion in five years, but people are so dissatisfied that healthcare is now the third biggest political issue. Put it another way, we are now spending nearly $6,000 per citizen on healthcare.

How many people here would give up their right to the public healthcare system if they got $6,000 for their own private insurance? Should we allow people to opt out of the public healthcare system, and take their portion of funding with them so they can go private?

Education is similar. We spend $20 billion of taxpayer money every year, and every year 60,000 children are born. By my count that’s $333,000 of lifetime education spending for each citizen.

How many people would take their $333,000 and pay for their own education? How many young New Zealanders would be better off if they did it that way?

Instead of spending next year because we did it this year, we need to ask ourselves, if we want to remain a first world country, then do New Zealanders get a return on this spending that justifies taking the money off taxpayers in the first place? If spending doesn’t stack up, it should stop so we can repay debt or spend the money on something that does.

Then there’s the $570 billion, over half a trillion dollars of assets, the government owns. The one thing we know from state houses, hospital projects, and farms with high levels of animal death, is that the government is hopeless at owning things.

But did you know you own Quotable Value, a property valuation company chaired by a former race relations conciliator that contracts to the government of New South Wales?

What about 60,000 homes? The government doesn’t need to own a home to house someone. We know this because it also spends billions subsidising people to live in homes it doesn’t own. On the other hand, the taxpayer is paying $10 billion a year servicing debt, and the KiwiBuild and Kainga Ora debacles show the government should do as little in housing as possible.

There are greater needs for government capital. We haven’t built a harbour crossing for nearly seven decades. Four hundred people die every year on a substandard road network. Beaches around here get closed thanks to sewerage overflow, but we need more core infrastructure. Sections of this city are being red zoned from having more homes built because the council cannot afford the pipes and pumping stations.

We need to get past squeamishness about privatisation and ask a simple question: if we want to be a first world country, then are we making the best use of the government’s half a trillion dollars’ plus worth of assets? If something isn’t getting a return, the government should sell it so we can afford to buy something that does.

Finally, there’s regulation. That is placing restrictions on the use and exchange of property that the government doesn’t own or hasn’t taxed off the people who earned it already. That is, your property. Bad regulation is killing our prosperity in three ways.

It adds costs to the things we do. It’s the delays, the paperwork, and the fees that make too many activities cost more than they ought to. It’s the builder saying it takes longer to get the consent than it took to build the thing. It’s the anti-money laundering palaver that ties people in knots doing basic things but somehow doesn’t stop criminals bringing in half a billion dollars of P each year. It’s the daycare centre that took four years to open because different departments couldn’t agree about the road noise outside. I could go on all afternoon.

Then there’s the things that just don’t happen because people decide the costs don’t add up once the red tape is factored in.

Then there’s the big one that goes to the heart of our identity and culture. It’s all the kids who grow up in a country where people gave up or weren’t allowed to try. It’s the climbing wall at Sir Edmund Hillary’s old school with signs saying don’t climb. It’s the lack of nightlife because it’s too hard to get a license. It’s the fear that comes from worrying WorkSafe or some other regulator will come and shut you down. You can’t measure it, but we all know it’s there.

The Kiwi spirit we are so proud of is being chipped away and killing our vibe. Nobody migrated here to be compliant, but compliance is infantilising our culture, and I haven’t even mentioned orange cones yet.

If we want to remain first world, we need to change how we regulate. No law should be passed without showing what problem is being solved, whether the benefits outweigh the costs, and who pays the costs and gets the benefits. These are the basic principles of the Regulatory Standards Bill that the Government will pass this year.

Conclusion

Of course, the Government IS doing many things that will change how it operates. There is a drive to reduce waste. There is a drive to get more money from overseas investment. The Regulatory Standards Bill will change how we regulate. The Resource Management Act is being replaced. Anti-money laundering laws are being simplified. Charter schools are opening, more roads are being built. These are all good things.

But make no mistake, our country has always been the site of a battle between two tribes. The effect of emigration, and the world faced by young New Zealanders risks creating a permanent majority for mediocrity. Our country is at a tipping point.

We need honest conversations about why government spends, owns, and regulates, and whether those policies are good enough to secure our future as a first world nation.

You may have seen the ACT Party has been involved in a battle to define the principles of the Treaty democratically. It’s caused quite a stir. If you missed it, please check out treaty.nz where we outline what it’s about. It may still succeed this time, or it may be one of those bills that simply breaks the ground so something like it can proceed in the future.

Either way, the tribe of change makers has a voice. People who want equal rights for all New Zealanders to be treated with respect and dignity because they’re citizens have a position that others need to refute. Good luck to them arguing against equal rights.

It also shows something else, that ACT is the party prepared to stand up when it’s not easy and it’s not popular. That’s exactly the type of party our country needs in our Government.

To all the Change Makers who proudly put us there, thank you, and no matter how daunting this tipping point may feel, together we can ensure our best days are still ahead of us.

MIL OSI New Zealand News –

January 28, 2025

MIL-OSI Security: Waterbury Drug Trafficker Sentenced to More Than 18 Years in Federal Prison

Source: Office of United States Attorneys

Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that GAWAYNE FISHER, also known as “Fruit” and “Tank,” 49, of Waterbury, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 217 months of imprisonment, followed by five years of supervised release, for heading a large-scale drug trafficking ring while on federal supervised release.

According to court documents and statements made in court, in August 2009, Fisher was sentenced in New Haven federal court to 10 years of imprisonment and eight years of supervised release for cocaine trafficking offenses. He was released from prison in February 2015.

In 2022, the DEA New Haven Task Force, the DEA Tactical Diversion Squad, the Waterbury Police Department, and other law enforcement agencies determined that Fisher was trafficking narcotics while on federal supervised release. The investigation, which included court-authorized wiretaps on multiple phones, physical surveillance, and controlled purchases of narcotics, revealed that Fisher and others were selling large quantities of heroin, fentanyl, and cocaine, as well as counterfeit oxycodone and alprazolam (Xanax) pills.

Fisher and three of his associates were arrested on April 13, 2023. On that date, a search of a West Main Street apartment in Waterbury that Fisher used as a stash location revealed approximately 16 kilograms of cocaine, three kilograms of fentanyl, 125,000 individual glassine bags containing fentanyl, and $7,574 in cash. A search of Fisher’s residence on Beverly Avenue in Waterbury, and his vehicle, revealed approximately $175,110 in cash. In addition, a search of a residence on Yale Street in Waterbury that Fisher’s co-conspirator used as a stash location revealed drug-processing equipment, approximately three kilograms of loose fentanyl, and approximately 75,000 individual bags containing fentanyl.

Fisher has been detained since his arrest. On January 11, 2024, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and five kilograms or more of cocaine, and one count of money laundering.

Judge Bolden sentenced Fisher to 180 months of imprisonment for the narcotics trafficking and money laundering offenses, and a consecutive 37 months of imprisonment for violating the conditions of his supervised release.

This investigation was conducted by the DEA New Haven Task Force, the DEA Tactical Diversion Squad, and the Waterbury Police Department, with the assistance of the Federal Bureau of Investigation, U.S. Marshals Service, Connecticut State Police, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Naugatuck, Ansonia, West Haven, Meriden, East Haven, Branford, Shelton, and Bristol Police Departments.

This case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

MIL Security OSI –

January 28, 2025

MIL-OSI: Capital Bancorp, Inc. Announces 4Q and Full Year 2024 Results; Successful Close of the IFH Acquisition; Robust Organic Loan and Deposit Growth; Diversified Business Model Drives Strong Performance

Source: GlobeNewswire (MIL-OSI)

Fourth Quarter 2024 Results

Net Income of $7.5 million, or $0.45 per share, and return on average assets of 0.96%
- Net Income of $15.5 million, or $0.92 per share, and return on average assets of 1.97% as adjusted to exclude the impact of merger-related expenses, initial Integrated Financial Holdings, Inc. (“IFH”) Allowance for Credit Losses (“ACL”) provision, and a non-recurring legacy IFH equity and debt investment write-down (non-GAAP)⁽¹⁾
Tangible Book Value Per Share⁽¹⁾ of $18.77, decreased 6.8%, or $1.36 as compared to $20.13 (3Q 2024), resulting from the acquisition of IFH and related purchase accounting impacts
Return on average equity of 8.50%, and return on average tangible common equity⁽¹⁾ of 9.47%
- Core return on average equity⁽¹⁾ of 17.68%, and core return on average tangible common equity⁽¹⁾ of 19.19%
Net Interest Income increased $6.0 million, or 15.6% (not annualized), from 3Q 2024
Net Interest Margin (“NIM”) decreased to 5.87% as compared to 6.41% (3Q 2024)
- Core NIM, as adjusted to exclude the impact of credit card loans (non-GAAP)⁽¹⁾ decreased to 4.05% as compared to 4.08% (3Q 2024)
- Net purchase accounting accretion of $0.7 million for 4Q 2024 accounted for 9 basis points of the reported 5.87% NIM and 10 basis points of the reported 4.05% core NIM, respectively
Fee Revenue (noninterest income) totaled $11.9 million, or 21.2% of total revenue for 4Q 2024
- Core Fee Revenue of $14.5 million, or 24.7% of total core revenue, increased $7.9 million from 3Q 2024, excluding a non-recurring equity and debt investment write-down of $2.6 million (non-GAAP)⁽¹⁾, primarily due to the acquisition of IFH
Gross Loan Growth in the quarter of $522.6 million includes $373.5 million from the acquisition of IFH, and $149.1 million from organic growth, or 28.2% annualized for 4Q 2024
- Commercial and industrial loans of $554.6 million, or 21.0% of total gross loans at December 31, 2024 increased $282.7 million from September 30, 2024
Total Deposit Growth in the quarter of $575.7 million includes $459.0 million from the acquisition of IFH, and $116.7 million from organic growth, or 21.2% annualized for 4Q 2024
- Noninterest bearing deposits increased $92.8 million, or 51.4% annualized from 3Q 2024
The ratio of allowance for credit losses to total loans equaled 1.85% at December 31, 2024 including 1.44% for the legacy Capital Bank portfolio, down 7 basis points from 3Q. The additional ACL coverage results from the initial $15.5 million impact from the acquisition of the IFH portfolio.
Cash Dividend of $0.10 per share declared by the Board of Directors

ROCKVILLE, Md., Jan. 27, 2025 (GLOBE NEWSWIRE) — Capital Bancorp, Inc. (the “Company”) (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the “Bank”), today reported net income of $7.5 million, or $0.45 per diluted share, for the fourth quarter 2024, compared to net income of $8.7 million, or $0.62 per diluted share, for the third quarter 2024, and $9.0 million, or $0.65 per diluted share, for the fourth quarter 2023. On October 1, 2024, the Company successfully completed its previously announced merger with IFH. Net income for the fourth quarter 2024 would have been $15.5 million, or $0.92 per diluted share if adjusted to exclude the impact of merger-related expenses, the initial IFH ACL provision, and a non-recurring equity and debt investment write down (non-GAAP)⁽¹⁾, compared to $9.2 million, or $0.66 per diluted share, for the third quarter 2024.

The Company also declared a cash dividend on its common stock of $0.10 per share. The dividend is payable on February 26, 2025 to shareholders of record on February 10, 2025.

“We are pleased to have successfully closed our acquisition of Integrated Financial Holdings, and we are now focused on merger integration and executing on the opportunities from our complementary lines of business,” said Ed Barry, CEO of the Company and the Bank. “We continue to benefit from our diversified business model which is driving growth across our platforms.”

“The really strong performance of the commercial bank during the quarter was highlighted by record loan growth, solid deposit growth, and stable core net interest margin. I am particularly pleased by the growth of our commercial and industrial loans,” said Steven J. Schwartz, Chairman of the Company. “This outstanding organic growth is expected to continue to be a major contributing factor in our overall earnings growth in 2025 and beyond. The acquisition of IFH, while creating a lot of noise in the financial results of the 4th quarter, provides us with a new line of business – loan servicing, processing, and packaging – and a significant expansion of our government-guaranteed lending platform.”

⁽¹⁾ Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures are set forth in the Appendix at the end of this press release.

Acquisition of Integrated Financial Holdings, Inc.
On October 1, 2024, the Company successfully completed its previously announced merger with IFH. Pursuant to the terms of the Merger Agreement, each share of IFH’s common stock, par value $1.00 per share (“IFH Common Stock”) was converted into the right to receive (a) 1.115 shares of common stock of the Company, par value $0.01 per share (“Capital Common Stock”); and (b) $5.36 in cash per share of IFH Common Stock held immediately prior to the Effective Time, in addition to cash in lieu of fractional shares. In addition, each stock option granted by IFH to purchase shares of IFH Common Stock, whether vested or unvested, outstanding immediately prior to the Effective Time, was assumed by the Company and converted into an equivalent option to purchase Capital Common Stock, with the same terms and conditions as applied to the IFH stock option.

Total assets, including purchase accounting adjustments, of $559.4 million acquired in connection with the IFH acquisition included gross loans of $373.5 million, loans held for sale of $41.7 million and total deposits of $459.0 million at October 1, 2024.

During 2024, the Company incurred pre-tax merger-related expenses of $3.9 million, including expenses totaling $2.6 million for the fourth quarter 2024, generally consistent with modeled expectations.

The fourth quarter earnings were also impacted by pre-tax provision credit losses on acquired loans of $4.2 million (“Initial IFH ACL Provision”) along with a non-recurring $2.6 million write-down of a legacy IFH equity and debt investment in a start-up. The net remaining value of the equity and debt investment is $0.2 million at December 31, 2024.

The following table provides a reconciliation of the Company’s net income under GAAP to non-GAAP results excluding merger-related expenses, Initial IFH ACL Provision, and the non-recurring equity and debt write-down.

	Fourth Quarter 2024								Third Quarter 2024
(in thousands, except per share data)	Income Before Income Taxes		Income Tax Expense		Net Income		Diluted Earnings per Share		Income Before Income Taxes		Income Tax Expense(Benefit)			Net Income		Diluted Earnings per Share
GAAP Earnings	$	10,776	$	3,243	$	7,533	$	0.45	$	11,499	$	2,827		$	8,672	$	0.62
Add: Merger-Related Expenses		2,615		464		2,151				520		(37	)		557
Add: Non-recurring Equity and Debt Investment Write-Down		2,620		—		2,620				—		—			—
Add: Initial IFH ACL Provision		4,194		1,025		3,169				—		—			—
Non-GAAP Earnings	$	20,205	$	4,732	$	15,473	$	0.92	$	12,019	$	2,790		$	9,229	$	0.66

	Year Ended December 31, 2024
(in thousands, except per share data)	Income Before Income Taxes		Income Tax Expense		Net Income		Diluted Earnings per Share
GAAP Earnings	$	41,832	$	10,860	$	30,972	$	2.11
Add: Merger-Related Expenses		3,930		622		3,308
Add: Non-recurring Equity and Debt Investment Write-Down		2,620		—		2,620
Add: Initial IFH ACL Provision		4,194		1,025		3,169
Non-GAAP Earnings	$	52,576	$	12,507	$	40,069	$	2.73

^{Note: The tax benefit associated with merger-related expenses has been adjusted to reflect the estimated nondeductible portion of the expenses.}

Fourth Quarter 2024 Highlights

Earnings Summary

Net income of $7.5 million, or $0.45 per diluted share, decreased $1.1 million compared to $8.7 million, or $0.62 per diluted share, for the third quarter 2024. Net income of $15.5 million, or $0.92 per diluted share, as adjusted to exclude the impact of merger-related expenses, Initial IFH ACL Provision and a $2.6 million non-recurring equity and debt investment write-down (non-GAAP)⁽¹⁾ for the fourth quarter 2024 compared to $9.2 million, or $0.66 per diluted share, for the third quarter 2024.

Net interest income of $44.3 million increased $6.0 million, or 15.6%, compared to the third quarter 2024.
- Interest income of $61.7 million increased $9.1 million, or 17.3%, over the third quarter 2024, primarily from $7.9 million in portfolio loan interest income, as growth in average balances increased $539.3 million. Interest income from interest-bearing deposits held at other financial institutions increased $0.3 million, as average balances increased $49.1 million to $140.2 million. Interest income included $0.7 million from net purchase accounting amortization.
- Interest expense of $17.4 million increased $3.1 million, or 21.9% over the third quarter 2024 due to increases in time deposits and borrowed funds of $2.7 million and $0.6 million, respectively, offset by a decrease in customer money market deposits of $0.3 million. Average balances increased $367.8 million, $53.5 million and $65.3 million, respectively. Interest expense included $1.4 million from net purchase accounting accretion.
The provision for credit losses was $7.8 million, an increase of $4.1 million from the third quarter 2024, which included the Initial IFH ACL Provision of $4.2 million, $2.4 million from organic commercial portfolio loan growth and $1.2 million from OpenSky provision in the quarter. Net charge-offs totaled $2.4 million, a $0.2 million decrease over the third quarter 2024, including $2.1 million from credit card related loans. At December 31, 2024, the allowance for credit losses to total loans ratio was 1.85%, up 34 basis points from the ratio at September 30, 2024 due to the initial purchase credit deteriorated (“PCD”) credit mark and initial non-PCD ACL provision. Excluding IFH, legacy Capital Bank ACL coverage ratio was 1.44%, a decrease of 7 basis points from the third quarter 2024.

Earnings Summary (Continued)

Noninterest income of $11.9 million increased $5.3 million as compared to the third quarter 2024 primarily due to contributions from the IFH acquisition. Government loan servicing revenue (Windsor) totaled $4.0 million, government lending revenue totaled $2.3 million and loan servicing rights totaled $1.0 million, offset by a non-recurring equity and debt write-down of $2.6 million related to an IFH investment. Other income increased $1.0 million including $0.9 million related to an investment in an SBIC, while credit card fees declined $0.3 million.
Noninterest expense of $37.5 million increased $7.8 million as compared to the third quarter 2024, primarily from the IFH acquisition. Noninterest expense of $34.9 million, excluding merger-related expenses of $2.6 million, increased $5.7 million as compared to the third quarter 2024. Highlights include:
- The fourth quarter 2024 includes $0.3 million of intangible amortization resulting from the transaction.
- Salaries and employee benefits expenses of $16.5 million increased $3.2 million, primarily related to the acquisition of IFH.
- Occupancy and equipment expenses of $3.0 million increased $1.2 million, primarily related to increased contract expense from the IFH acquisition of $0.5 million and software depreciation of $0.4 million.
- Estimated total cost synergies resulting from the acquisition totaled $1.5 million in the fourth quarter 2024, generally consistent with modeled expectations.
Income tax expense of $3.2 million, or 30.1% of pre-tax income for the fourth quarter 2024, increased $0.4 million from $2.8 million, or 24.6% of pre-tax income for the third quarter 2024. The elevated tax rate in the quarter resulted from non-deductibility of an equity and debt write-down along with some merger-related expenses. Excluding merger-related expenses and the non-recurring equity and debt write-down, the effective income tax rate for the fourth quarter 2024 would have been 22.6%.

Balance Sheet

Total assets of $3.2 billion at December 31, 2024 increased $646.1 million, or 25.2% (not annualized), from September 30, 2024. Total assets, including $559.4 million acquired with the IFH acquisition, net of purchase accounting, included gross loans of $373.5 million, loans held for sale of $41.7 million and total deposits of $459.0 million at October 1, 2024.

Cash and cash equivalents of $205.3 million at December 31, 2024 increased $48.6 million from September 30, 2024.
Total portfolio loans of $2.6 billion at December 31, 2024 increased $522.6 million, or 24.8% (not annualized) from September 30, 2024. Total average loans increased $539.3 million quarter over quarter.
- Owner-occupied commercial real estate loans increased $88.6 million, or 25.2% (not annualized) from September 30, 2024.
- The average portfolio loans-to-deposit ratio of 99.27% for the three months ended December 31, 2024 remained stable.
Total deposits of $2.8 billion at December 31, 2024 increased $575.7 million, or 26.3% (not annualized), from September 30, 2024. The increase includes $190.6 million of customer time deposits, $92.8 million of noninterest-bearing deposits primarily related to growth in title company deposit balances, $130.2 million of growth in customer money market deposits and $180.0 million of growth in brokered time deposits, partially offset by a decrease in interest-bearing demand accounts of $27.6 million.
- Insured and protected deposits were approximately $1.6 billion as of December 31, 2024, representing 57.1% of the Company’s deposit portfolio.
- Low and no interest bearing deposits of $1.1 billion, 38.5% of deposits, increased $74.9 million, or 7.6% (not annualized) from September 30, 2024. Average noninterest-bearing deposits of $729.9 million increased $49.2 million, or 7.2% (not annualized), and represented 27.9% of total average deposits at December 31, 2024.
The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $223.6 million, or 7.0% of total assets, an effective duration of 3.0 years, with U.S. Treasury Securities representing 57% of the overall investment portfolio at December 31, 2024. The accumulated other comprehensive income (loss) on the investment securities portfolio increased $2.9 million during the quarter to ($11.5 million) as of December 31, 2024, which represents 3.2% of total stockholders’ equity. The Company does not have a held-to-maturity investment securities portfolio.
Liquidity – The Company maintains stable and reliable sources of available borrowings, generally consistent with prior quarter. Sources of available borrowings at December 31, 2024 totaled $803.0 million, including available collateralized lines of credit of $595.7 million, unsecured lines of credit with other banks of $76.0 million and unpledged investment securities available as collateral for potential additional borrowings of $131.4 million.
Capital Positions – As of December 31, 2024, the Company reported a common equity tier 1 capital ratio of 13.74%, compared to 14.78% at September 30, 2024. At December 31, 2024, the Company and the Bank maintain regulatory capital ratios that exceed all capital adequacy requirements.

Financial Metrics

Net Interest Margin – Net interest margin decreased 54 basis points to 5.87% for the three months ended December 31, 2024, compared to prior quarter. Core net interest margin, as adjusted to exclude the impact of OpenSky^™ credit card loans (non-GAAP)⁽¹⁾, decreased 3 basis points to 4.05% as compared to prior quarter. Net purchase accounting accretion for the fourth quarter 2024 was 9 basis points and 10 basis points for NIM and core NIM, respectively.

The average yield on interest earning assets of 8.17% decreased 62 basis points compared to the prior quarter, including 40 basis points from inclusion of IFH commercial assets. The yield on portfolio loans, as adjusted to exclude the impact of OpenSky^™ credit card loans (non-GAAP)⁽¹⁾, of 6.98% for the fourth quarter 2024, decreased 17 basis points, primarily as a consequence of reduced market interest rates.
The total cost of deposits decreased 14 basis points to 2.50% for the fourth quarter 2024 as compared to the prior quarter. The total cost of interest-bearing deposits decreased 46 basis points to 3.46% for the fourth quarter 2024 as compared to the prior quarter.

Efficiency Ratios – The efficiency ratio was 66.7% for the three months ended December 31, 2024, compared to 66.1% for the three months ended September 30, 2024. The efficiency ratio was 59.3%, as adjusted to exclude the impact of merger-related expenses and a non-recurring equity and debt investment write-down (non-GAAP)⁽¹⁾, for the three months ended December 31, 2024 compared to 64.9% for the three months ended September 30, 2024.

Credit Metrics and Asset Quality – The ratio of allowance for credit losses to total loans equaled 1.85% at December 31, 2024, an increase of 34 basis points from September 20, 2024, which includes a 1.44% ACL coverage ratio for the legacy Capital Bank portfolio, down 7 basis points from 3Q. The additional ACL coverage results from the initial $15.5 million reserve on the $373.5 million IFH loan portfolio. Underlying credit performance and metrics were relatively stable and consistent with prior quarter when excluding the impact of the combination with IFH.

Nonperforming assets increased 34 basis points to 0.94% of total assets at December 31, 2024 as compared to September 30, 2024. Total nonaccrual loans at December 31, 2024 increased $14.8 million to $30.2 million compared to September 30, 2024. At December 31, 2024, special mention loans totaled $60.0 million, or 2.3% of total portfolio loans, as compared to $20.3 million, or 1.0% of total portfolio loans, at September 30, 2024. At December 31, 2024, substandard loans totaled $48.4 million, or 1.8% of total portfolio loans, as compared to $23.8 million, or 1.1% of total portfolio loans, at September 30, 2024.

Performance Ratios – Annualized return on average assets (“ROAA”) and annualized return on average equity (“ROAE”), and ROATCE were 0.96%, 8.50%, and 9.47% respectively, for the three months ended December 31, 2024, compared to 1.42%, 12.59%, and 12.59% respectively, for the three months ended September 30, 2024.

Annualized ROAA, annualized ROAE, and annualized ROATCE were 1.97%, 17.46%, and 19.19% respectively, as adjusted to exclude the impact of merger-related expenses, Initial IFH ACL Provision, and a non-recurring equity and debt investment write-down (non-GAAP)⁽¹⁾, for the three months ended December 31, 2024, compared to 1.51%, 13.40%, and 13.40% respectively, for the three months ended September 30, 2024.

Tangible Book Value – Book value per common share of $21.31 at December 31, 2024 increased $1.19 when compared to September 30, 2024. Tangible book value per common share⁽¹⁾ decreased $1.36, or 6.8%, to $18.77 at December 31, 2024 when compared to September 30, 2024. Tangible book value was impacted by the purchase accounting adjustments made in consequence of the IFH acquisition. The Company did not have goodwill or other intangible assets prior to the fourth quarter 2024. Therefore, tangible book value per share⁽¹⁾ was equal to book value per share for periods prior to the fourth quarter 2024.

Commercial Bank

Continued Portfolio Loan Growth – Gross portfolio loans, excluding OpenSky^™ credit card loans, increased $522.9 million, to $2.5 billion, at December 31, 2024 compared to September 30, 2024.

The $522.9 million gross portfolio loan growth includes commercial real estate loans of $156.4 million, residential real estate loans of $64.9 million and commercial and industrial loans of $282.7 million. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.

Net Interest Income – Interest income of $45.2 million increased $9.4 million from prior quarter, driven by loan growth and higher loan yields. Interest expense of $17.1 million increased $3.1 million, driven by an increase in average balances in the fourth quarter 2024.

Credit Metrics – Nonperforming assets, comprised solely of nonaccrual loans, increased 34 basis point to 0.94% of total assets at December 31, 2024 compared to September 30, 2024. Total nonaccrual loans at December 31, 2024 increased to $30.2 million compared to $15.5 million at September 30, 2024 due primarily to the acquisition of IFH.

Classified and Criticized Loans – At December 31, 2024, special mention loans totaled $60.0 million, or 2.3% of total portfolio loans, as compared to $20.3 million, or 1.0% of total portfolio loans, at September 30, 2024. At December 31, 2024, substandard loans totaled $48.4 million, or 1.8% of total portfolio loans, as compared to $23.8 million, or 1.1% of total portfolio loans, at September 30, 2024.

OpenSky^™

Revenues – Total revenue of $19.2 million decreased $0.5 million from the prior quarter. Interest income of $15.5 million decreased $0.2 million from the prior quarter. Average OpenSky^™ credit card loan balances, net of reserves and deferred fees of $121.0 million for the fourth quarter 2024, increased $1.5 million, or 1.3% (not annualized), compared to prior quarter. Noninterest income of $3.7 million decreased $0.4 million as compared to the prior quarter, primarily related to lower annual fee income.

Noninterest Expense – Total noninterest expense of $12.6 million decreased $0.7 million, primarily related to a reduction in quarterly advertising expense.

Loan and Deposit Balances – Loan balances, net of reserves, of $127.8 million at December 31, 2024 increased by $0.7 million, or 0.5%, compared to $127.1 million at September 30, 2024. Corresponding deposit balances of $166.4 million at December 31, 2024 decreased $4.4 million, or 2.6%, compared to $170.8 million at September 30, 2024. Gross unsecured loan balances of $42.4 million at December 31, 2024 increased $2.7 million, or 6.8%, compared to $39.7 million at September 30, 2024. During the fourth quarter 2024, the number of credit card accounts increased by 3,614 to 552,566 from September 30, 2024.

OpenSky^™Credit – Portfolio credit metrics continue to be generally consistent with modeled expectations during the fourth quarter 2024. The provision for credit losses of $1.2 million decreased $1.1 million when compared to the prior quarter.

Capital Bank Home Loans

Originations of loans held for sale totaled $90.0 million during the fourth quarter, with $77.4 million of mortgage loans sold resulting in a gain on sale of loans of $1.9 million, representing a 2.45% of gain on sale as a percentage of total loans sold.

Windsor Advantage

Windsor Advantage is a loan service provider that offers community banks and credit unions with a comprehensive outsourced U.S. Small Business Association (“SBA”) 7(a) and U.S. Department of Agriculture (“USDA”) lending platform. Windsor Advantage generates fee income for the Company in connection with its servicing, processing and packaging of such loans for its financial institution clients.

Fee Income – Gross government loan servicing revenue totaled $4.6 million, including $0.5 million of Capital Bank related servicing fees, during the fourth quarter 2024. Windsor’s total servicing portfolio was $2.5 billion at December 31, 2024.

COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited

	Quarter Ended									4Q24 vs 3Q24					4Q24 vs 4Q23
(in thousands, except per share data)	December 31, 2024			September 30, 2024			December 31, 2023			$ Change			% Change		$ Change			% Change
Earnings Summary
Interest income	$	61,707		$	52,610		$	46,969		$	9,097		17.3	%	$	14,738		31.4	%
Interest expense		17,380			14,256			12,080			3,124		21.9	%		5,300		43.9	%
Net interest income		44,327			38,354			34,889			5,973		15.6	%		9,438		27.1	%
Provision for credit losses		7,828			3,748			2,808			4,080		108.9	%		5,020		178.8	%
Provision for (release of) credit losses on unfunded commitments		122			17			(106	)		105		617.6	%		228		(215.1	)%
Noninterest income		11,913			6,635			5,936			5,278		79.5	%		5,977		100.7	%
Noninterest expense		37,514			29,725			26,907			7,789		26.2	%		10,607		39.4	%
Income before income taxes		10,776			11,499			11,216			(723	)	(6.3	)%		(440	)	(3.9	)%
Income tax expense		3,243			2,827			2,186			416		14.7	%		1,057		48.4	%
Net income	$	7,533		$	8,672		$	9,030		$	(1,139	)	(13.1	)%	$	(1,497	)	(16.6	)%

Pre-tax pre-provision net revenue (“PPNR”) ⁽¹⁾	$	18,726		$	15,264		$	13,918		$	3,462		22.7	%	$	4,808		34.5	%
PPNR, as adjusted⁽¹⁾	$	23,961		$	15,784		$	13,918		$	8,177		51.8	%	$	10,043		72.2	%

Common Share Data
Earnings per share – Basic	$	0.45		$	0.62		$	0.65		$	(0.17	)	(27.4	)%	$	(0.20	)	(30.8	)%
Earnings per share – Diluted	$	0.45		$	0.62		$	0.65		$	(0.17	)	(27.4	)%	$	(0.20	)	(30.8	)%
Earnings per share – Diluted, as adjusted⁽¹⁾	$	0.92		$	0.66		$	0.65		$	0.26		39.4	%	$	0.27		41.5	%
Weighted average common shares – Basic		16,595			13,914			13,897
Weighted average common shares – Diluted		16,729			13,951			13,989

Return Ratios
Return on average assets (annualized)		0.96	%		1.42	%		1.63	%
Return on average assets, as adjusted (annualized)⁽¹⁾		1.97	%		1.51	%		1.63	%
Return on average equity (annualized)		8.50	%		12.59	%		14.44	%
Return on average equity, as adjusted (annualized)⁽¹⁾		17.46	%		13.40	%		14.44	%
Return on average tangible common equity (annualized)⁽¹⁾		9.47	%		12.59	%		14.44	%
Core return on average equity, as adjusted (annualized)⁽¹⁾		17.68	%		13.40	%		14.44	%
Core return on average tangible common equity, as adjusted (annualized)⁽¹⁾		19.19	%		13.40	%		14.44	%

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

COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited (Continued)

	Year Ended
	December 31,
(in thousands, except per share data)		2024			2023		$ Change			% Change
Earnings Summary
Interest income	$	213,301		$	183,206		$	30,095		16.4	%
Interest expense		58,555			41,680			16,875		40.5	%
Net interest income		154,746			141,526			13,220		9.3	%
Provision for credit losses		17,720			9,610			8,110		84.4	%
Provision for (release of) credit losses on unfunded commitments		385			(101	)		486		(481.2	)%
Noninterest income		31,410			24,975			6,435		25.8	%
Noninterest expense		126,219			110,767			15,452		14.0	%
Income before income taxes		41,832			46,225			(4,393	)	(9.5	)%
Income tax expense		10,860			10,354			506		4.9	%
Net income	$	30,972		$	35,871		$	(4,899	)	(13.7	)%

Pre-tax pre-provision net revenue (“PPNR”) ⁽¹⁾	$	59,937		$	55,734		$	4,203		7.5	%
PPNR, as adjusted⁽¹⁾	$	66,487		$	55,734		$	10,753		19.3	%

Common Share Data
Earnings per share – Basic	$	2.12		$	2.56		$	(0.44	)	(17.2	)%
Earnings per share – Diluted	$	2.11		$	2.55		$	(0.44	)	(17.3	)%
Earnings per share – Diluted, as adjusted⁽¹⁾	$	2.73		$	2.55
Weighted average common shares – Basic		14,584			14,003
Weighted average common shares – Diluted		14,660			14,081

Return Ratios
Return on average assets (annualized)		1.21	%		1.64	%
Return on average assets, as adjusted (annualized)⁽¹⁾		1.57	%		1.64	%
Return on average equity (annualized)		10.78	%		14.91	%
Return on average equity, as adjusted (annualized)⁽¹⁾		13.94	%		14.91	%

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

COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited (Continued)

	Quarter Ended							Quarter Ended
	December 31,							September 30,		June 30,		March 31,
(in thousands, except per share data)		2024		2023	% Change				2024		2024		2024
Balance Sheet Highlights
Assets	$	3,206,911	$	2,226,176		44.1	%	$	2,560,788	$	2,438,583	$	2,324,238
Investment securities available-for-sale		223,630		208,329		7.3	%		208,700		207,917		202,254
Mortgage loans held for sale		21,270		7,481		184.3	%		19,554		19,219		10,303
Portfolio loans receivable ⁽²⁾		2,630,163		1,903,288		38.2	%		2,107,522		2,021,588		1,964,525
Allowance for credit losses		48,652		28,610		70.1	%		31,925		30,832		29,350
Deposits		2,761,939		1,895,996		45.7	%		2,186,224		2,100,428		2,005,695
FHLB borrowings		22,000		22,000		—	%		52,000		32,000		22,000
Other borrowed funds		12,062		27,062		(55.4	)%		12,062		12,062		12,062
Total stockholders’ equity		355,139		254,860		39.3	%		280,111		267,854		259,465
Tangible common equity ⁽¹⁾		312,685		254,860		22.7	%		280,111		267,854		259,465

Common shares outstanding		16,662		13,923		19.7	%		13,918		13,910		13,890
Book value per share	$	21.31	$	18.31		16.4	%	$	20.13	$	19.26	$	18.68
Tangible book value per share ⁽¹⁾	$	18.77	$	18.31		2.5	%	$	20.13	$	19.26	$	18.68
Dividends per share	$	0.10	$	0.08		25.0	%	$	0.10	$	0.08	$	0.08

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

Consolidated Statements of Income (Unaudited)
	Three Months Ended												Year Ended
(in thousands)	December 31, 2024			September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023			December 31, 2024			December 31, 2023
Interest income
Loans, including fees	$	58,602		$	50,047	$	48,275	$	45,991	$	45,109		$	202,915		$	174,760
Investment securities available-for-sale		1,539			1,343		1,308		1,251		1,083			5,441			4,815
Federal funds sold and other		1,566			1,220		1,032		1,127		777			4,945			3,631
Total interest income		61,707			52,610		50,615		48,369		46,969			213,301			183,206

Interest expense
Deposits		16,385			13,902		13,050		12,833		11,759			56,170			39,625
Borrowed funds		995			354		508		528		321			2,385			2,055
Total interest expense		17,380			14,256		13,558		13,361		12,080			58,555			41,680

Net interest income		44,327			38,354		37,057		35,008		34,889			154,746			141,526
Provision for credit losses		7,828			3,748		3,417		2,727		2,808			17,720			9,610
Provision for (release of) credit losses on unfunded commitments		122			17		104		142		(106	)		385			(101	)
Net interest income after provision for credit losses		36,377			34,589		33,536		32,139		32,187			136,641			132,017
Noninterest income
Service charges on deposits		241			235		200		207		240			883			964
Credit card fees		3,733			4,055		4,330		3,881		3,970			15,999			17,273
Mortgage banking revenue		1,821			1,882		1,990		1,453		1,166			7,146			4,896
Government lending revenue		2,301			—		—		—		—			2,301			—
Government loan servicing revenue		3,993			—		—		—		—			3,993			—
Loan servicing rights (government guaranteed)		1,013			—		—		—		—			1,013			—
Non-recurring equity and debt investment write-down		(2,620	)		—		—		—		—			(2,620	)		—
Other income		1,431			463		370		431		560			2,695			1,842
Total noninterest income		11,913			6,635		6,890		5,972		5,936			31,410			24,975
Noninterest expenses
Salaries and employee benefits		16,513			13,345		13,272		12,907		11,638			56,037			48,754
Occupancy and equipment		2,976			1,791		1,864		1,613		1,573			8,244			5,673
Professional fees		2,150			1,980		1,769		1,947		1,930			7,846			9,270
Data processing		7,210			6,930		6,788		6,761		6,128			27,689			25,686
Advertising		1,032			1,223		2,072		2,032		1,433			6,359			6,161
Loan processing		969			615		476		371		198			2,431			1,633
Foreclosed real estate expenses, net		—			1		—		1		—			2			7
Merger-related expenses		2,615			520		83		712		—			3,930			—
Operational losses		993			1,008		782		931		1,490			3,714			4,613
Other operating		3,056			2,312		2,387		2,212		2,517			9,967			8,970
Total noninterest expenses		37,514			29,725		29,493		29,487		26,907			126,219			110,767
Income before income taxes		10,776			11,499		10,933		8,624		11,216			41,832			46,225
Income tax expense		3,243			2,827		2,728		2,062		2,186			10,860			10,354
Net income	$	7,533		$	8,672	$	8,205	$	6,562	$	9,030		$	30,972		$	35,871

Consolidated Balance Sheets
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(audited)
(in thousands, except share data)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Assets
Cash and due from banks	$	25,433		$	23,462		$	19,294		$	12,361		$	14,513
Interest-bearing deposits at other financial institutions		179,841			133,180			117,160			72,787			39,044
Federal funds sold		58			58			57			56			407
Total cash and cash equivalents		205,332			156,700			136,511			85,204			53,964
Investment securities available-for-sale		223,630			208,700			207,917			202,254			208,329
Restricted investments		4,479			5,895			4,930			4,441			4,353
Loans held for sale		21,270			19,554			19,219			10,303			7,481
Portfolio loans receivable, net of deferred fees and costs		2,630,163			2,107,522			2,021,588			1,964,525			1,903,288
Less allowance for credit losses		(48,652	)		(31,925	)		(30,832	)		(29,350	)		(28,610	)
Total portfolio loans held for investment, net		2,581,511			2,075,597			1,990,756			1,935,175			1,874,678
Premises and equipment, net		15,525			5,959			5,551			4,500			5,069
Accrued interest receivable		16,664			12,468			12,162			12,258			11,494
Goodwill		21,126			—			—			—			—
Intangible assets		14,072			—			—			—			—
Loan servicing assets		5,511			—			—			—			—
Deferred tax asset		16,670			10,748			12,150			12,311			12,252
Bank owned life insurance		43,956			38,779			38,414			38,062			37,711
Other assets		37,165			26,388			10,973			19,730			10,845
Total assets	$	3,206,911		$	2,560,788		$	2,438,583		$	2,324,238		$	2,226,176

Liabilities
Deposits
Noninterest-bearing	$	810,928		$	718,120		$	684,574		$	665,812		$	617,373
Interest-bearing		1,951,011			1,468,104			1,415,854			1,339,883			1,278,623
Total deposits		2,761,939			2,186,224			2,100,428			2,005,695			1,895,996
Federal Home Loan Bank advances		22,000			52,000			32,000			22,000			22,000
Other borrowed funds		12,062			12,062			12,062			12,062			27,062
Accrued interest payable		9,393			8,503			6,573			6,009			5,583
Other liabilities		46,378			21,888			19,666			19,007			20,675
Total liabilities		2,851,772			2,280,677			2,170,729			2,064,773			1,971,316

Stockholders’ equity
Common stock		167			139			139			139			139
Additional paid-in capital		128,598			55,585			55,005			54,229			54,473
Retained earnings		237,843			232,995			225,824			218,731			213,345
Accumulated other comprehensive loss		(11,469	)		(8,608	)		(13,114	)		(13,634	)		(13,097	)
Total stockholders’ equity		355,139			280,111			267,854			259,465			254,860
Total liabilities and stockholders’ equity	$	3,206,911		$	2,560,788		$	2,438,583		$	2,324,238		$	2,226,176

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

	Three Months Ended December 31, 2024							Three Months Ended September 30, 2024							Three Months Ended December 31, 2023
	Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾			Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾			Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾
	(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits	$	140,206	$	1,446		4.10	%	$	91,089	$	1,137		4.97	%	$	65,336	$	680		4.13	%
Federal funds sold		58		—		—			57		1		6.98			1,574		21		5.29
Investment securities available-for-sale		236,951		1,539		2.58			221,303		1,343		2.41			223,132		1,083		1.93
Restricted investments		7,292		120		6.55			4,911		82		6.64			4,518		76		6.67
Loans held for sale		25,614		193		3.00			9,967		161		6.43			4,601		83		7.16
Portfolio loans receivable⁽²⁾⁽³⁾		2,592,960		58,409		8.96			2,053,619		49,886		9.66			1,863,298		45,026		9.59
Total interest earning assets		3,003,081		61,707		8.17			2,380,946		52,610		8.79			2,162,459		46,969		8.62
Noninterest earning assets		117,026							56,924							40,020
Total assets	$	3,120,107						$	2,437,870						$	2,202,479

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	257,446		424		0.66		$	228,365		321		0.56		$	195,539		90		0.18
Savings		13,497		20		0.59			4,135		5		0.48			5,184		2		0.15
Money market accounts		763,526		7,131		3.72			698,239		7,442		4.24			680,697		7,139		4.16
Time deposits		847,618		8,810		4.13			479,824		6,134		5.09			380,731		4,528		4.72
Borrowed funds		97,116		995		4.08			43,655		354		3.23			41,823		321		3.05
Total interest-bearing liabilities		1,979,203		17,380		3.49			1,454,218		14,256		3.90			1,303,974		12,080		3.68
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		58,460							28,834							27,529
Noninterest-bearing deposits		729,907							680,731							622,941
Stockholders’ equity		352,537							274,087							248,035
Total liabilities and stockholders’ equity	$	3,120,107						$	2,437,870						$	2,202,479

Net interest spread						4.68	%						4.89	%						4.94	%
Net interest income			$	44,327						$	38,354						$	34,889
Net interest margin⁽⁴⁾						5.87	%						6.41	%						6.40	%

_______________
⁽¹⁾Annualized.
⁽²⁾Includes nonaccrual loans.
⁽³⁾For the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, collectively, portfolio loans yield excluding credit card loans was 6.98%, 7.15% and 6.89%, respectively.
⁽⁴⁾For the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, collectively, credit card loans accounted for 182, 233 and 248 basis points of the reported net interest margin, respectively.

	Year Ended December 31,
		2024							2023
	Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾			Average Outstanding Balance		Interest Income/ Expense		Average Yield/ Rate⁽¹⁾
	(in thousands)
Assets
Interest earning assets:
Interest-bearing deposits	$	98,319	$	4,569		4.65	%	$	70,407	$	3,211		4.56	%
Federal funds sold		57		3		5.26			1,597		74		4.63
Investment securities available-for-sale		228,909		5,441		2.38			245,466		4,815		1.96
Restricted investments		5,563		373		6.71			5,016		346		6.90
Loans held for sale		12,121		569		4.69			5,755		382		6.64
Portfolio loans receivable⁽²⁾⁽³⁾		2,142,638		202,346		9.44			1,816,968		174,378		9.60
Total interest earning assets		2,487,607		213,301		8.57			2,145,209		183,206		8.54
Noninterest earning assets		66,442							43,090
Total assets	$	2,554,049						$	2,188,299

Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand accounts	$	221,437	$	1,003		0.45	%	$	201,194	$	298		0.15	%
Savings		6,732		27		0.40			5,768		8		0.14
Money market accounts		704,002		28,741		4.08			642,013		23,510		3.66
Time deposits		561,369		26,399		4.70			360,464		15,809		4.39
Borrowed funds		63,686		2,385		3.74			59,302		2,055		3.47
Total interest-bearing liabilities		1,557,226		58,555		3.76			1,268,741		41,680		3.29
Noninterest-bearing liabilities:
Noninterest-bearing liabilities		34,043							24,026
Noninterest-bearing deposits		675,360							655,013
Stockholders’ equity		287,420							240,519
Total liabilities and stockholders’ equity	$	2,554,049						$	2,188,299

Net interest spread						4.81	%						5.25	%
Net interest income			$	154,746						$	141,526
Net interest margin⁽⁴⁾						6.22	%						6.60	%

⁽¹⁾Annualized.
⁽²⁾Includes nonaccrual loans.
⁽³⁾For the years ended December 31, 2024 and 2023, collectively, portfolio loans yield excluding credit card loans was 7.03% and 6.65%, respectively.
⁽⁴⁾For the years ended December 31, 2024 and 2023, collectively, credit card loans accounted for 222 and 264 basis points of the reported net interest margin, respectively.

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

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

The following schedule presents financial information for the periods indicated. Total assets are presented as of December 31, 2024, September 30, 2024, and December 31, 2023.

Segments
For the three months ended December 31, 2024
(in thousands)	Commercial Bank			CBHL			OpenSky^™		Windsor Advantage		Corporate⁽²⁾			Eliminations			Consolidated
Interest income	$	45,195		$	192		$	15,454	$	—	$	874		$	(8	)	$	61,707
Interest expense		17,086			131			—		—		171			(8	)		17,380
Net interest income		28,109			61			15,454		—		703			—			44,327
Provision for credit losses		6,651			—			1,177		—		—			—			7,828
Provision for credit losses on unfunded commitments		122			—			—		—		—			—			122
Net interest income after provision		21,336			61			14,277		—		703			—			36,377
Noninterest income (loss)		4,547			1,676			3,743		4,566		(2,619	)		—			11,913
Noninterest expense⁽¹⁾		16,539			2,377			12,595		2,670		3,333			—			37,514
Net income (loss) before taxes	$	9,344		$	(640	)	$	5,425	$	1,896	$	(5,249	)	$	—		$	10,776

Total assets	$	2,994,356		$	21,691		$	125,913	$	7,922	$	376,930		$	(319,901	)	$	3,206,911

For the three months ended September 30, 2024
(in thousands)	Commercial Bank			CBHL			OpenSky^™		Windsor Advantage		Corporate⁽²⁾			Eliminations			Consolidated
Interest income	$	35,805		$	161		$	15,625	$	—	$	1,049		$	(30	)	$	52,610
Interest expense		13,984			108			—		—		194			(30	)		14,256
Net interest income		21,821			53			15,625		—		855			—			38,354
Provision for credit losses		1,453			—			2,294		—		1			—			3,748
Provision for credit losses on unfunded commitments		17			—			—		—		—			—			17
Net interest income after provision		20,351			53			13,331		—		854			—			34,589
Noninterest income		726			1,811			4,096		—		2			—			6,635
Noninterest expense⁽¹⁾		12,422			2,395			13,276		—		1,632			—			29,725
Net income (loss) before taxes	$	8,655		$	(531	)	$	4,151	$	—	$	(776	)	$	—		$	11,499

Total assets	$	2,358,555		$	19,831		$	121,587	$	—	$	300,325		$	(239,510	)	$	2,560,788

For the three months ended December 31, 2023
(in thousands)	Commercial Bank			CBHL			OpenSky^™		Windsor Advantage		Corporate⁽²⁾			Eliminations			Consolidated
Interest income	$	30,957		$	83		$	15,035	$	—	$	964		$	(70	)	$	46,969
Interest expense		11,884			31			—		—		235			(70	)		12,080
Net interest income		19,073			52			15,035		—		729			—			34,889
Provision for (release of) credit losses		691			—			2,125		—		(8	)		—			2,808
Release of credit losses on unfunded commitments		(106	)		—			—		—		—			—			(106	)
Net interest income after provision		18,488			52			12,910		—		737			—			32,187
Noninterest income		773			1,166			3,996		—		1			—			5,936
Noninterest expense⁽¹⁾		12,303			1,617			12,669		—		318			—			26,907
Net income (loss) before taxes	$	6,958		$	(399	)	$	4,237	$	—	$	420		$	—		$	11,216

Total assets	$	2,051,945		$	8,589		$	117,477	$	—	$	277,565		$	(229,400	)	$	2,226,176

________________________
⁽¹⁾ Noninterest expense includes $6.3 million, $6.2 million, and $5.7 million in data processing expense in OpenSky’s^™ segment for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
⁽²⁾ The Corporate segment invests idle cash in revenue-producing assets including interest-bearing cash accounts, loan participations and other appropriate investments for the Company.

Segments
For the year ended December 31, 2024
(in thousands)	Commercial Bank			CBHL			OpenSky^™		Windsor Advantage		Corporate⁽²⁾			Eliminations			Consolidated
Interest income	$	147,464		$	568		$	61,785	$	—	$	3,646		$	(162	)	$	213,301
Interest expense		57,536			363			—		—		818			(162	)		58,555
Net interest income		89,928			205			61,785		—		2,828			—			154,746
Provision for credit losses		10,331			—			7,329		—		60			—			17,720
Provision for credit losses on unfunded commitments		385			—			—		—		—			—			385
Net interest income after provision		79,212			205			54,456		—		2,768			—			136,641
Noninterest income (loss)		6,654			6,684			16,122		4,566		(2,616	)		—			31,410
Noninterest expense⁽¹⁾		53,429			9,377			53,245		2,670		7,498			—			126,219
Net income (loss) before taxes	$	32,437		$	(2,488	)	$	17,333	$	1,896	$	(7,346	)	$	—		$	41,832

Total assets	$	2,994,356		$	21,691		$	125,913	$	7,922	$	376,930		$	(319,901	)	$	3,206,911

For the year ended December 31, 2023
(in thousands)	Commercial Bank			CBHL			OpenSky™		Windsor Advantage		Corporate⁽²⁾			Eliminations			Consolidated
Interest income	$	116,408		$	382		$	62,476	$	—	$	4,238		$	(298	)	$	183,206
Interest expense		40,896			135			—		—		947			(298	)		41,680
Net interest income		75,512			247			62,476		—		3,291			—			141,526
Provision for credit losses		1,540			—			7,948		—		122			—			9,610
Release of credit losses on unfunded commitments		(101	)		—			—		—		—			—			(101	)
Net interest income after provision		74,073			247			54,528		—		3,169			—			132,017
Noninterest income		2,737			4,909			17,325		—		4			—			24,975
Noninterest expense⁽¹⁾		48,347			8,155			52,752		—		1,513			—			110,767
Net income (loss) before taxes	$	28,463		$	(2,999	)	$	19,101	$	—	$	1,660		$	—		$	46,225

Total assets	$	2,051,945		$	8,589		$	117,477	$	—	$	277,565		$	(229,400	)	$	2,226,176

⁽¹⁾ Noninterest expense includes $24.9 million and $23.7 million in data processing expense in OpenSky’s^™ segment for the years ended December 31, 2024 and 2023, respectively.
⁽²⁾ The Corporate segment invests idle cash in revenue-producing assets including interest-bearing cash accounts, loan participations and other appropriate investments for the Company.

HISTORICAL FINANCIAL HIGHLIGHTS – Unaudited
	Quarter Ended
(in thousands, except per share data)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Earnings:
Net income	$	7,533		$	8,672		$	8,205		$	6,562		$	9,030
Earnings per common share, diluted		0.45			0.62			0.59			0.47			0.65
Net interest margin		5.87	%		6.41	%		6.46	%		6.24	%		6.40	%
Net interest margin, excluding credit card loans ⁽¹⁾		4.05	%		4.08	%		4.00	%		3.85	%		3.92	%
Return on average assets⁽²⁾		0.96	%		1.42	%		1.40	%		1.15	%		1.63	%
Return on average equity⁽²⁾		8.50	%		12.59	%		12.53	%		10.19	%		14.44	%
Efficiency ratio		66.70	%		66.07	%		67.11	%		71.95	%		65.91	%

Balance Sheet:
Total portfolio loans receivable, net deferred fees	$	2,630,163		$	2,107,522		$	2,021,588		$	1,964,525		$	1,902,643
Total deposits		2,761,939			2,186,224			2,100,428			2,005,695			1,895,996
Total assets		3,206,911			2,560,788			2,438,583			2,324,238			2,226,176
Total stockholders’ equity		355,139			280,111			267,854			259,465			254,860
Total average portfolio loans receivable, net deferred fees		2,592,960			2,053,619			1,992,630			1,927,372			1,863,298
Total average deposits		2,611,994			2,091,294			2,010,736			1,957,559			1,885,092
Portfolio loans-to-deposit ratio (period-end balances)		95.23	%		96.40	%		96.25	%		97.95	%		100.35	%
Portfolio loans-to-deposit ratio (average balances)		99.27	%		98.20	%		99.10	%		98.46	%		98.84	%

Asset Quality Ratios:
Nonperforming assets to total assets		0.94	%		0.60	%		0.58	%		0.62	%		0.72	%
Nonperforming loans to total loans		1.15	%		0.73	%		0.70	%		0.73	%		0.84	%
Net charge-offs to average portfolio loans ⁽²⁾		0.37	%		0.51	%		0.39	%		0.41	%		0.53	%
Allowance for credit losses to total loans		1.85	%		1.51	%		1.53	%		1.49	%		1.50	%
Allowance for credit losses to non-performing loans		160.88	%		206.50	%		219.40	%		204.37	%		178.34	%

Bank Capital Ratios:
Total risk based capital ratio		12.82	%		13.76	%		14.51	%		14.36	%		14.81	%
Tier 1 risk based capital ratio		11.56	%		12.50	%		13.25	%		13.10	%		13.56	%
Leverage ratio		9.12	%		9.84	%		10.36	%		10.29	%		10.51	%
Common equity Tier 1 capital ratio		11.56	%		12.50	%		13.25	%		13.10	%		13.56	%
Tangible common equity		9.31	%		9.12	%		9.53	%		9.66	%		9.91	%
Holding Company Capital Ratios:
Total risk based capital ratio		15.48	%		16.65	%		16.98	%		16.83	%		17.38	%
Tier 1 risk based capital ratio		13.83	%		14.88	%		15.19	%		15.03	%		15.55	%
Leverage ratio		11.07	%		11.85	%		11.93	%		11.87	%		12.14	%
Common equity Tier 1 capital ratio		13.74	%		14.78	%		15.08	%		14.92	%		15.43	%
Tangible common equity		11.07	%		10.94	%		10.98	%		11.16	%		11.45	%

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

HISTORICAL FINANCIAL HIGHLIGHTS – Unaudited (Continued)
	Quarter Ended
(in thousands, except per share data)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023
Composition of Loans:
Commercial real estate, non owner-occupied	$	471,329		$	403,487		$	397,080		$	377,224		$	351,116
Commercial real estate, owner-occupied		440,026			351,462			319,370			330,840			307,911
Residential real estate		688,552			623,684			601,312			577,112			573,104
Construction real estate		321,252			301,909			294,489			290,016			290,108
Commercial and industrial		554,550			271,811			255,686			254,577			239,208
Lender finance		28,574			29,546			33,294			13,484			11,085
Business equity lines of credit		3,090			2,663			2,989			14,768			14,117
Credit card, net of reserve⁽³⁾		127,766			127,098			122,217			111,898			123,331
Other consumer loans		2,089			2,045			1,930			738			950
Portfolio loans receivable	$	2,637,228		$	2,113,705		$	2,028,367		$	1,970,657		$	1,910,930
Deferred origination fees, net		(7,065	)		(6,183	)		(6,779	)		(6,132	)		(7,642	)
Portfolio loans receivable, net	$	2,630,163		$	2,107,522		$	2,021,588		$	1,964,525		$	1,903,288

Composition of Deposits:
Noninterest-bearing	$	810,928		$	718,120		$	684,574		$	665,812		$	617,373
Interest-bearing demand		238,881			266,493			266,070			193,963			199,308
Savings		13,488			3,763			4,270			4,525			5,211
Money markets		816,708			686,526			672,455			678,435			663,129
Customer time deposits		548,901			358,300			317,911			302,319			268,619
Brokered time deposits		333,033			153,022			155,148			160,641			142,356
Total deposits	$	2,761,939		$	2,186,224		$	2,100,428		$	2,005,695		$	1,895,996

Capital Bank Home Loan Metrics:
Origination of loans held for sale	$	89,998		$	74,690		$	82,363		$	52,080		$	45,152
Mortgage loans sold		77,399			67,296			66,417			40,377			34,140
Gain on sale of loans		1,897			1,644			1,732			1,238			1,015
Purchase volume as a % of originations		90.42	%		90.98	%		96.48	%		97.83	%		89.99	%
Gain on sale as a % of loans sold⁽⁴⁾		2.45	%		2.44	%		2.61	%		3.07	%		2.97	%
Mortgage commissions	$	620		$	598		$	582		$	490		$	465

OpenSky^™Portfolio Metrics:
Open customer accounts		552,566			548,952			537,734			526,950			525,314
Secured credit card loans, gross	$	87,226		$	89,641		$	90,961		$	85,663		$	95,300
Unsecured credit card loans, gross		42,430			39,730			33,560			28,508			30,817
Noninterest secured credit card deposits		166,355			170,750			173,499			171,771			173,857

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

Appendix

Reconciliation of Non-GAAP Measures

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

Earnings Metrics, as Adjusted	Quarter Ended
(in thousands, except per share data)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023

Net Income	$	7,533		$	8,672		$	8,205		$	6,562		$	9,030
Add: Merger-Related Expenses, net of tax		2,151			557			62			538			—
Add: Non-recurring equity and debt investment write-down		2,620			—			—			—			—
Add: IFH ACL Provision, net of tax		3,169			—			—			—			—
Net Income, as Adjusted	$	15,473		$	9,229		$	8,267		$	7,100		$	9,030

Weighted Average Common Shares – Diluted		16,729			13,951			13,895			13,919			13,989
Earnings per Share – Diluted	$	0.45		$	0.62		$	0.59		$	0.47		$	0.65
Earnings per Share – Diluted, as Adjusted	$	0.92		$	0.66		$	0.59		$	0.51		$	0.65

Average Assets	$	3,120,107		$	2,437,870		$	2,353,868		$	2,299,234		$	2,202,479
Return on Average Assets⁽¹⁾		0.96	%		1.42	%		1.40	%		1.15	%		1.63	%
Return on Average Assets, as Adjusted⁽¹⁾		1.97	%		1.51	%		1.41	%		1.24	%		1.63	%

Average Equity	$	352,537		$	274,087		$	263,425		$	258,892		$	248,035
Return on Average Equity⁽¹⁾		8.50	%		12.59	%		12.53	%		10.19	%		14.44	%
Return on Average Equity, as Adjusted⁽¹⁾		17.46	%		13.40	%		12.62	%		11.03	%		14.44	%

Net Interest Income (a)	$	44,327		$	38,354		$	37,057		$	35,008		$	34,889
Noninterest Income		11,913			6,635			6,890			5,972			5,936
Total Revenue	$	56,240		$	44,989		$	43,947		$	40,980		$	40,825
Noninterest Expense	$	37,514		$	29,725		$	29,493		$	29,487		$	26,907
Efficiency Ratio⁽²⁾		66.70	%		66.07	%		67.11	%		71.95	%		65.91	%

Noninterest Income	$	11,913		$	6,635		$	6,890		$	5,972		$	5,936
Add: Non-recurring equity and debt investment write-down		2,620			—			—			—			—
Noninterest Income, as Adjusted (b)	$	14,533		$	6,635		$	6,890		$	5,972		$	5,936
Total Revenue, as Adjusted (a) + (b)	$	58,860		$	44,989		$	43,947		$	40,980		$	40,825

Noninterest Expense	$	37,514		$	29,725		$	29,493		$	29,487		$	26,907
Less: Merger-Related Expenses		2,615			520			83			712			—
Noninterest Expense, as Adjusted	$	34,899		$	29,205		$	29,410		$	28,775		$	26,907
Efficiency Ratio, as Adjusted⁽²⁾		59.29	%		64.92	%		66.92	%		70.22	%		65.91	%

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

Earnings Metrics, as Adjusted	Year Ended
(in thousands, except per share data)	December 31, 2024			December 31, 2023

Net Income	$	30,972		$	35,871
Add: Merger-Related Expenses, net of tax		3,308			—
Add: Non-recurring equity and debt investment write-down		2,620			—
Add: IFH ACL Provision, net of tax		3,169			—
Net Income, as Adjusted	$	40,069		$	35,871

Weighted average common shares – Diluted		14,660			14,081
Earnings per share – Diluted	$	2.11		$	2.55
Earnings per share – Diluted, as Adjusted	$	2.73		$	2.55

Average Assets	$	2,554,049		$	2,188,299
Return on Average Assets⁽¹⁾		1.21	%		1.64	%
Return on Average Assets, as Adjusted⁽¹⁾		1.57	%		1.64	%

Average Equity	$	287,420		$	240,519
Return on Average Equity⁽¹⁾		10.78	%		14.91	%
Return on Average Equity, as Adjusted⁽¹⁾		13.94	%		14.91	%

Net Interest Income (a)	$	154,746		$	141,526
Noninterest Income		31,410			24,975
Total Revenue	$	186,156		$	166,501
Noninterest Expense	$	126,219		$	110,767
Efficiency Ratio⁽²⁾		67.80	%		66.53	%

Noninterest Income	$	31,410		$	24,975
Add: Non-recurring equity and debt investment write-down		2,620			—
Noninterest Income, as Adjusted (b)	$	34,030		$	24,975
Total Revenue, as Adjusted (a) + (b)	$	188,776		$	166,501

Noninterest Expense	$	126,219		$	110,767
Less: Merger-Related Expenses		3,930			—
Noninterest Expense, as Adjusted	$	122,289		$	110,767
Efficiency Ratio, as Adjusted⁽²⁾		64.78	%		66.53	%

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

Net Interest Margin, as Adjusted	Quarter Ended
(in thousands)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023

Net Interest Income	$	44,327		$	38,354		$	37,057		$	35,008		$	34,889
Less: Credit Card Loan Income		15,022			15,137			15,205			14,457			14,677
Net Interest Income, as Adjusted	$	29,305		$	23,217		$	21,852		$	20,551		$	20,212
Average Interest Earning Assets		3,003,081			2,380,946			2,307,070			2,254,663			2,162,459
Less: Average Credit Card Loans		120,993			119,458			111,288			110,483			114,551
Total Average Interest Earning Assets, as Adjusted	$	2,882,088		$	2,261,488		$	2,195,782		$	2,144,180		$	2,047,908
Net Interest Margin, as Adjusted		4.05	%		4.08	%		4.00	%		3.85	%		3.92	%


Net Interest Margin, as Adjusted	Year Ended
(in thousands)	December 31, 2024			December 31, 2023

Net Interest Income	$	154,746		$	141,526
Less: Credit Card Loan Income		59,821			61,096
Net Interest Income, as Adjusted	$	94,925		$	80,430
Average Interest Earning Assets		2,487,607			2,145,209
Less: Average Credit Card Loans		115,581			114,450
Total Average Interest Earning Assets, as Adjusted	$	2,372,026		$	2,030,759
Net Interest Margin, as Adjusted		4.00	%		3.96	%

Portfolio Loans Receivable Yield, as Adjusted	Quarter Ended
(in thousands)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023

Portfolio Loans Receivable Interest Income	$	58,409		$	49,886		$	48,143		$	45,908		$	45,026
Less: Credit Card Loan Income		15,022			15,137			15,205			14,457			14,677
Portfolio Loans Receivable Interest Income, as Adjusted	$	43,387		$	34,749		$	32,938		$	31,451		$	30,349
Average Portfolio Loans Receivable		2,592,960			2,053,619			1,992,630			1,927,372			1,863,298
Less: Average Credit Card Loans		120,993			119,458			111,288			110,483			114,551
Total Average Portfolio Loans Receivable, as Adjusted	$	2,471,967		$	1,934,161		$	1,881,342		$	1,816,889		$	1,748,747
Portfolio Loans Receivable Yield, as Adjusted		6.98	%		7.15	%		7.04	%		6.96	%		6.89	%


Portfolio Loans Receivable Yield, as Adjusted	Year Ended
(in thousands)	December 31, 2024			December 31, 2023

Portfolio Loans Receivable Interest Income	$	202,346		$	174,378
Less: Credit Card Loan Income		59,821			61,096
Portfolio Loans Receivable Interest Income, as Adjusted	$	142,525		$	113,282
Average Portfolio Loans Receivable		2,142,638			1,816,968
Less: Average Credit Card Loans		115,581			114,450
Total Average Portfolio Loans Receivable, as Adjusted	$	2,027,057		$	1,702,518
Portfolio Loans Receivable Yield, as Adjusted		7.03	%		6.65	%

Pre-tax, Pre-Provision Net Revenue (“PPNR”)	Quarter Ended
(in thousands)	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023

Net Income	$	7,533	$	8,672	$	8,205	$	6,562	$	9,030
Add: Income Tax Expense		3,243		2,827		2,728		2,062		2,186
Add: Provision for Credit Losses		7,828		3,748		3,417		2,727		2,808
Add: Provision for (Release of) Credit Losses on Unfunded Commitments		122		17		104		142		(106	)
Pre-tax, Pre-Provision Net Revenue (“PPNR”)	$	18,726	$	15,264	$	14,454	$	11,493	$	13,918


Pre-tax, Pre-Provision Net Revenue (“PPNR”)	Year Ended
(in thousands)	December 31, 2024		December 31, 2023

Net Income	$	30,972	$	35,871
Add: Income Tax Expense		10,860		10,354
Add: Provision for Credit Losses		17,720		9,610
Add: Provision for (Release of) Credit Losses on Unfunded Commitments		385		(101	)
Pre-tax, Pre-Provision Net Revenue (“PPNR”)	$	59,937	$	55,734

PPNR, as Adjusted	Quarter Ended
(in thousands)	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023

Net Income	$	7,533	$	8,672	$	8,205	$	6,562	$	9,030
Add: Income Tax Expense		3,243		2,827		2,728		2,062		2,186
Add: Provision for Credit Losses		7,828		3,748		3,417		2,727		2,808
Add: Provision for (Release of) Credit Losses on Unfunded Commitments		122		17		104		142		(106	)
Add: Merger-Related Expenses		2,615		520		83		712		—
Add: Non-recurring equity and debt investment write-down		2,620		—		—		—		—
PPNR, as Adjusted	$	23,961	$	15,784	$	14,537	$	12,205	$	13,918


PPNR, as Adjusted	Year Ended
(in thousands)	December 31, 2024		December 31, 2023

Net Income	$	30,972	$	35,871
Add: Income Tax Expense		10,860		10,354
Add: Provision for Credit Losses		17,720		9,610
Add: Provision for (Release of) Credit Losses on Unfunded Commitments		385		(101	)
Add: Merger-Related Expenses		3,930		—
Add: Non-recurring equity and debt investment write-down		2,620		—
PPNR, as Adjusted	$	66,487	$	55,734

Allowance for Credit Losses to Total Portfolio Loans	Quarter Ended
(in thousands)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023

Allowance for Credit Losses	$	48,652		$	31,925		$	30,832		$	29,350		$	28,610
Total Portfolio Loans		2,630,163			2,107,522			2,021,588			1,964,525			1,903,288
Allowance for Credit Losses to Total Portfolio Loans		1.85	%		1.51	%		1.53	%		1.49	%		1.50	%

Nonperforming Assets to Total Assets	Quarter Ended
(in thousands)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023

Total Nonperforming Assets	$	30,241		$	15,460		$	14,053		$	14,361		$	16,042
Total Assets		3,206,911			2,560,788			2,438,583			2,324,238			2,226,176
Nonperforming Assets to Total Assets		0.94	%		0.60	%		0.58	%		0.62	%		0.72	%

Nonperforming Loans to Total Portfolio Loans	Quarter Ended
(in thousands)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023

Total Nonperforming Loans	$	30,241		$	15,460		$	14,053		$	14,361		$	16,042
Total Portfolio Loans		2,630,163			2,107,522			2,021,588			1,964,525			1,903,288
Nonperforming Loans to Total Portfolio Loans		1.15	%		0.73	%		0.70	%		0.73	%		0.84	%

Net Charge-Offs to Average Portfolio Loans	Quarter Ended
(in thousands)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023

Total Net Charge-Offs	$	2,427		$	2,655		$	1,935		$	1,987		$	2,477
Total Average Portfolio Loans		2,592,960			2,053,619			1,992,630			1,927,372			1,863,298
Net Charge-Offs to Average Portfolio Loans, Annualized		0.37	%		0.51	%		0.39	%		0.41	%		0.53	%

Net Charge-offs to Average Portfolio Loans	Year Ended
(in thousands)	December 31, 2024			December 31, 2023

Total Net Charge-Offs	$	9,004		$	8,473
Total Average Portfolio Loans		2,142,638			1,816,968
Net Charge-Offs to Average Portfolio Loans, Annualized		0.42	%		0.47	%

Tangible Book Value per Share	Quarter Ended
(in thousands, except share and per share data)	December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024		December 31, 2023

Total Stockholders’ Equity	$	355,139	$	280,111	$	267,854	$	259,465	$	254,860
Less: Preferred Equity		—		—		—		—		—
Less: Intangible Assets		42,454		—		—		—		—
Tangible Common Equity	$	312,685	$	280,111	$	267,854	$	259,465	$	254,860
Period End Shares Outstanding		16,662,405		13,917,891		13,910,467		13,889,563		13,922,532
Tangible Book Value per Share	$	18.77	$	20.13	$	19.26	$	18.68	$	18.31

Return on Average Tangible Common Equity	Quarter Ended
(in thousands)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023

Net Income	$	7,533		$	8,672		$	8,205		$	6,562		$	9,030
Add: Intangible Amortization, Net of Tax		198			—			—			—			—
Net Tangible Income	$	7,731		$	8,672		$	8,205		$	6,562		$	9,030
Average Equity		352,537			274,087			263,425			258,892			248,035
Less: Average Intangible Assets		27,653			—			—			—			—
Net Average Tangible Common Equity	$	324,884		$	274,087		$	263,425		$	258,892		$	248,035
Return on Average Equity		8.50	%		12.59	%		12.53	%		10.19	%		14.44	%
Return on Average Tangible Common Equity		9.47	%		12.59	%		12.53	%		10.19	%		14.44	%

Core Return on Average Tangible Common Equity	Quarter Ended
(in thousands)	December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024			December 31, 2023

Net Income, as Adjusted	$	15,473		$	9,229		$	8,267		$	7,100		$	9,030
Add: Intangible Amortization, Net of Tax		198			—			—			—			—
Net Tangible Income, as Adjusted	$	15,671		$	9,229		$	8,267		$	7,100		$	9,030
Core Return on Average Equity, as Adjusted		17.68	%		13.40	%		12.62	%		11.03	%		14.44	%
Core Return on Average Tangible Common Equity, as Adjusted		19.19	%		13.40	%		12.62	%		11.03	%		14.44	%

ABOUT CAPITAL BANCORP, INC.

Capital Bancorp, Inc., Rockville, Maryland is a registered bank holding company incorporated under the laws of Maryland. Capital Bancorp has been providing financial services since 1999 and now operates bank branches in six locations in the greater Washington, D.C. and Baltimore, Maryland markets, one bank branch in Fort Lauderdale, Florida and one bank branch in Chicago, Illinois. Capital Bancorp had assets of approximately $3.2 billion at December 31, 2024 and its common stock is traded in the NASDAQ Global Market under the symbol “CBNK.” More information can be found at the Company’s website www.CapitalBankMD.com under its investor relations page.

FORWARD-LOOKING STATEMENTS

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

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

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

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

MEDIA CONTACT: Ed Barry (240) 283-1912

WEB SITE: www.CapitalBankMD.com

The MIL Network –

January 28, 2025

MIL-OSI USA: State of Colorado and United Kingdom Sign Agreement to Foster Trade and Investment

Source: US State of Colorado

DENVER – Today, Colorado Governor Jared Polis and British Consul General Richard Hyde signed a Memorandum of Understanding (MOU) between Colorado and the United Kingdom (U.K.) to foster cooperation on economic relations, trade, and investment. This exciting new partnership will develop and promote shared opportunities between Colorado and the U.K. in clean energy, climate smart agriculture, quantum technologies, space technology, tourism, and artificial intelligence – all important economic drivers for both economies.

“In Colorado we are focused on saving people money and increasing affordability. Solidifying and strengthening our long-standing relationship with the United Kingdom helps create more pathways for investments into Colorado businesses, expands good jobs in Colorado’s key economic sectors, and establishes a strong and lasting trade partnership with our friends in the U.K.,” said Governor Polis.

“This agreement marks a great step forward in our trade relationship with Colorado. We’re unlocking investment for businesses, creating new job opportunities and strengthening the bonds of friendship and cooperation between the U.K. and Colorado,” said Consul General Hyde.

The Governor welcomed Consul General Hyde at the Colorado State Capitol in Denver for a bilateral meeting and MoU signing ceremony. Following the signing, the State of Colorado and the U.K. will form a steering committee to oversee the implementation of the partnership, which will highlight opportunities to reduce barriers to trade and investment between the two regions and elevate new business development opportunities.

The MoU builds on a strong economic partnership between the two regions. In 2023, Colorado exported $214 million in goods to the U.K., while importing $260 million. The U.K. is also Colorado’s number one source of foreign investment. Over the last five years, British companies invested $1.5 billion in capital expenditures and provided an estimated 19,400 jobs in Colorado. Also over the last five years, Colorado companies invested an estimated $1.3 billion in capital expenditure and created an estimated 3,765 jobs in the U.K.

The state also routinely welcomes British business delegations interested in Colorado’s business ecosystem in areas such as aerospace, agriculture, quantum technology, and renewable energy. Additionally, the British Government keeps an office in Denver to facilitate trade and investment. The Colorado Department of Agriculture, the Colorado Department of Health and Environment, the Colorado Energy Office (CEO) and the Colorado Office of Economic Development and International Trade (OEDIT) supported the development of the MoU.

“The U.K is a top economic partner for Colorado. We are thrilled to strengthen this relationship and work together to identify new trade and investment opportunities that benefit Colorado businesses and create jobs in some of our state’s leading industries, including clean energy, quantum, space technology and tourism,” said Eve Lieberman, OEDIT Executive Director.

“Colorado and agricultural organizations in the UK have many shared goals and areas of common interest. From research opportunities to climate smart initiatives, and from helping small businesses to co-manufacturing collaboration, we look forward to continuing our close relationship that this signing has memorialized,” said Colorado Commissioner of Agriculture Kate Greenberg.

“International partnerships such as this are essential to ensure the quick and affordable adoption of clean energy technologies to achieve global climate goals. As Colorado moves closer to achieving our own state goals of 100% clean energy by 2040 and net-zero emissions by 2050, we are pleased to collaborate with our U.K. partners to share lessons learned and help advance the market for clean energy around the world,” said CEO Executive Director Will Toor.

“This agreement underscores the critical importance of international collaboration in addressing shared challenges like climate change and advancing public health initiatives. By partnering with the U.K., Colorado is poised to leverage innovative solutions in clean energy, climate-smart agriculture, and technology to create healthier communities and a more sustainable future. We are excited to support this partnership and look forward to the opportunities it will bring for both our state and global progress,” said Jill Hunsaker Ryan, Executive Director of CDPHE:

About OEDIT’s Global Business Development Division

Global Business Development (GBD) is a division of the Colorado Office of Economic Development and International Trade. GBD supports Colorado businesses and communities by using a data-driven approach to recruit, support, and retain businesses that contribute to a robust and diversified economy. We align our portfolio of programs, services, and incentives with industries that benefit Colorado companies and elevate the state’s national and international competitiveness. GBD also hosts foreign delegations and participates in trade and investment missions around the world to strengthen global awareness of Colorado. With a highly educated and motivated workforce, a thriving innovation economy, and nation-leading entrepreneurial spirit, Colorado is a top market for business development.

About the Colorado Office of Economic Development and International Trade

The Colorado Office of Economic Development and International Trade (OEDIT) works to empower all to thrive in Colorado’s economy. Under the leadership of the Governor and in collaboration with economic development partners across the state, we foster a thriving business environment through funding and financial programs, training, consulting and informational resources across industries and regions. We promote economic growth and long-term job creation by recruiting, retaining, and expanding Colorado businesses and providing programs that support entrepreneurs and businesses of all sizes at every stage of growth. Our goal is to protect what makes our state a great place to live, work, start a business, raise a family, visit and retire—and make it accessible to everyone. Learn more about OEDIT.

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MIL OSI USA News –

January 28, 2025

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