MIL-OSI: Northfield Bancorp, Inc. Announces Second Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

NOTABLE ITEMS FOR THE QUARTER INCLUDE:

DILUTED EARNINGS PER SHARE WERE $0.24 FOR THE CURRENT QUARTER COMPARED TO $0.19 FOR THE TRAILING QUARTER, AND $0.14 FOR THE SECOND QUARTER OF 2024.
NET INTEREST MARGIN INCREASED BY 19 BASIS POINTS TO 2.57% FOR THE CURRENT QUARTER COMPARED TO 2.38% FOR THE TRAILING QUARTER, AND BY 48 BASIS POINTS COMPARED TO 2.09% FOR THE SECOND QUARTER OF 2024, DRIVEN BY LOWER FUNDING COSTS AND HIGHER YIELDS ON INTEREST-EARNING ASSETS.
COST OF DEPOSITS, EXCLUDING BROKERED DEPOSITS, AT JUNE 30, 2025 WAS 1.88% AS COMPARED TO 1.94% AT MARCH 31, 2025.
ASSET QUALITY IMPROVED WITH NON-PERFORMING LOANS TO TOTAL LOANS AT 0.36% AT JUNE 30, 2025 COMPARED TO 0.48% AT MARCH 31, 2025.
THE COMPANY MAINTAINED STRONG LIQUIDITY WITH OVER $800 MILLION IN UNPLEDGED AVAILABLE-FOR-SALE SECURITIES AND LOANS READILY AVAILABLE-FOR-PLEDGE OF APPROXIMATELY $1 BILLION.
A $10.0 MILLION REPURCHASE PLAN APPROVED ON APRIL 23, 2025 WAS COMPLETED DURING THE CURRENT QUARTER AS THE COMPANY REPURCHASED 862,469 SHARES.
CASH DIVIDEND DECLARED OF $0.13 PER SHARE OF COMMON STOCK, PAYABLE ON AUGUST 20, 2025, TO STOCKHOLDERS OF RECORD AS OF AUGUST 6, 2025.

WOODBRIDGE, N.J., July 23, 2025 (GLOBE NEWSWIRE) — NORTHFIELD BANCORP, INC. (Nasdaq:NFBK) (the “Company”), the holding company for Northfield Bank, reported net income of $9.6 million, or $0.24 per diluted share, for the three months ended June 30, 2025, compared to $7.9 million, or $0.19 per diluted share, for the three months ended March 31, 2025, and $6.0 million, or $0.14 per diluted share, for the three months ended June 30, 2024. For the six months ended June 30, 2025, net income totaled $17.4 million, or $0.43 per diluted share, compared to $12.2 million, or $0.29 per diluted share, for the six months ended June 30, 2024. For the three and six months ended June 30, 2025, net income included $580,000 of additional tax expense related to options that expired in May 2025. For the three and six months ended June 30, 2024, net income included $795,000 of additional tax expense related to options that expired in June 2024, and $683,000 of severance expense. The increase in net income for the current quarter and the six months ended June 30, 2025, as compared to the comparable prior year periods was primarily due to an increase in net interest income, attributable to lower funding costs and higher yields on loans and securities, partially offset by an increase in the provision for credit losses on loans.

Commenting on the quarter, Steven M. Klein, the Company’s Chairman and Chief Executive Officer, noted, “Our strong financial results reflect the continued execution of our strategic initiatives, focused on prudent and disciplined lending and deposit gathering, net interest margin expansion, and expense discipline.” Mr. Klein further noted, “I’m pleased to report that we continue to deploy our substantial capital base, including through stock repurchases of $15.0 million for the year and the declaration of a quarterly cash dividend of $0.13 per common share, payable August 20, 2025, to stockholders of record on August 6, 2025.”

Results of Operations

Comparison of Operating Results for the Six Months Ended June 30, 2025 and 2024

Net income was $17.4 million and $12.2 million for the six months ended June 30, 2025 and June 30, 2024, respectively. Significant variances from the comparable prior year period are as follows: a $9.6 million increase in net interest income, a $4.9 million increase in the provision for credit losses on loans, a $1.3 million increase in non-interest income, a $920,000 decrease in non-interest expense, and a $1.7 million increase in income tax expense.

Net interest income for the six months ended June 30, 2025, increased $9.6 million, or 17.0%, to $66.2 million, from $56.6 million for the six months ended June 30, 2024 due to a $6.0 million decrease in interest expense and a $3.6 million increase in interest income. The decrease in interest expense was primarily due to a decrease in the average balance of interest-bearing liabilities of $141.5 million, or 3.3%, as well as a decrease in the cost of interest-bearing liabilities, which decreased by 18 basis points to 2.74% for the six months ended June 30, 2025, from 2.92% for the six months ended June 30, 2024. The average balance of interest-bearing liabilities decreased primarily due to a $378.9 million, or 35.2%, decrease in the average balance of borrowed funds, partially offset by a $237.2 million, or 7.5%, increase in the average balance of interest-bearing deposits, primarily certificates of deposit. The decrease in the cost of interest-bearing liabilities was driven primarily by an eight basis point decrease in the cost of interest-bearing deposits to 2.47% from 2.55% and a four basis point decrease in the cost of borrowings to 3.83% from 3.87%. The increase in interest income was primarily due to a 25 basis point increase in the yield on interest-earning assets, due to higher yields on mortgage-backed securities and loans, partially offset by a $128.0 million, or 2.3%, decrease in the average balance of interest-earning assets. The decrease was primarily due to decreases in the average balance of loans of $175.5 million, the average balance of other securities of $275.8 million, and the average balance of interest-earning deposits in financial institutions of $128.1 million, partially offset by an increase in the average balance of mortgage-backed securities of $453.4 million. The changes reflect the purchase of higher-yielding mortgage-related securities with excess cash and proceeds from the maturities of other securities.

Net interest margin increased by 42 basis points to 2.48% for the six months ended June 30, 2025, from 2.06% for the six months ended June 30, 2024. The increase in net interest margin was primarily due to higher yields on loans and mortgage-backed securities, coupled with a decrease in the cost of interest-bearing liabilities. Net interest income for the six months ended June 30, 2025, included $609,000 of interest income related to the settlement of a non-accrual loan in May 2025. The Company accreted interest income related to purchased credit-deteriorated (“PCD”) loans of $469,000 for the six months ended June 30, 2025, as compared to $747,000 for the six months ended June 30, 2024. Net interest income for the six months ended June 30, 2025, also included loan prepayment income of $767,000 as compared to $561,000 for the six months ended June 30, 2024.

The provision for credit losses on loans increased by $4.9 million to $4.7 million for the six months ended June 30, 2025, compared to a benefit of $203,000 for the six months ended June 30, 2024, primarily due to an increase in general reserves related to a worsening macroeconomic forecast in the current quarter within our Current Expected Credit Loss (“CECL”) model, an increase in specific reserves of $1.2 million, changes in model assumptions including a reduction in prepayment speeds, and higher net charge-offs. Partially offsetting the increase in reserves was a decline in loan balances. Net charge-offs were $3.7 million for the six months ended June 30, 2025, primarily due to $3.2 million in net charge-offs on small business unsecured commercial and industrial loans, as compared to net charge-offs of $2.6 million for the six months ended June 30, 2024. Management continues to closely monitor the small business unsecured commercial and industrial loan portfolio, which totaled $24.0 million at June 30, 2025.

Non-interest income increased by $1.3 million, or 21.0%, to $7.5 million for the six months ended June 30, 2025, compared to $6.2 million for the six months ended June 30, 2024. The increase was primarily due to an increase in income on bank-owned life insurance of $1.4 million, primarily related to the exchange of certain policies in the fourth quarter of 2024 which have higher yields, partially offset by a $178,000 decrease in gains on trading securities. Gains on trading securities in the six months ended June 30, 2025, were $709,000, as compared to gains of $887,000 in the six months ended June 30, 2024. The trading portfolio is utilized to fund the Company’s deferred compensation obligation to certain employees and directors of the plan. The participants of this plan, at their election, defer a portion of their compensation. Gains and losses on trading securities have no effect on net income since participants benefit from, and bear the full risk of changes in the trading securities market values. Therefore, the Company records an equal and offsetting amount in compensation expense, reflecting the change in the Company’s obligations under the plan.

Non-interest expense decreased by $920,000, or 2.0%, to $44.4 million for the six months ended June 30, 2025, compared to $45.3 million for the six months ended June 30, 2024. The decrease was primarily due to a $650,000 decrease in employee compensation and benefits, primarily due to severance expense of $683,000 which was recorded during the six months ended June 30, 2024, and a $178,000 decrease in deferred compensation expense, which is described above, and had no effect on net income. Partially offsetting the decreases were higher salary expense related to annual merit increases and higher stock compensation expense as the prior year included a credit of $461,000 related to performance stock awards not expected to vest. Additionally, there was a $456,000 decrease in advertising expense attributable to a change in marketing strategy and the timing of specific deposit and lending campaigns, and a $311,000 decrease in other expense. Partially offsetting the decreases was a $485,000 increase in professional fees related to outsourced audit services and recruitment fees.

The Company recorded income tax expense of $7.2 million for the six months ended June 30, 2025, compared to $5.5 million for the six months ended June 30, 2024. The effective tax rate for the six months ended June 30, 2025, was 29.3% compared to 31.2% for the six months ended June 30, 2024. In May 2025, options granted in 2015 expired and resulted in additional tax expense of $580,000 for the six months ended June 30, 2025, as compared to options granted in 2014 that expired in June 2024 and resulted in additional tax expense of $795,000 for the six months ended June 30, 2024.

Comparison of Operating Results for the Three Months Ended June 30, 2025 and 2024

Net income was $9.6 million and $6.0 million for the quarters ended June 30, 2025 and June 30, 2024, respectively. Significant variances from the comparable prior year quarter are as follows: a $5.7 million increase in net interest income, a $2.7 increase in the provision for credit losses on loans, a $1.7 million increase in non-interest income, and a $1.1 million increase in income tax expense.

Net interest income for the quarter ended June 30, 2025, increased $5.7 million, or 19.9%, to $34.4 million, from $28.7 million for the quarter ended June 30, 2024, due to a $3.5 million decrease in interest expense and a $2.2 million increase in interest income. The decrease in interest expense was primarily due to a decrease in the average balance of interest-bearing liabilities of $177.0 million, or 4.1%, as well as a decrease in the cost of interest-bearing liabilities which decreased by 22 basis points to 2.73% for the three months ended June 30, 2025, from 2.95% for the three months ended June 30, 2024. The average balance of interest-bearing liabilities decreased primarily due to a $344.2 million, or 33.1% decrease in the average balance of borrowed funds, partially offset by a $167.0 million, or 5.2%, increase in the average of interest-bearing deposits. The decrease in the cost of interest-bearing liabilities was driven by an 18 basis point decrease in the cost of interest-bearing deposits to 2.42% from 2.60%, partially offset by a 10 basis point increase in the cost of borrowed funds to 3.98% from 3.88%. The increase in interest income was primarily due to a 28 basis point increase in the yield on interest-earning assets due to higher yields on mortgage-backed securities and loans, partially offset by a $151.7 million, or 2.8%, decrease in the average balance of interest-earning assets. The decrease was primarily due to decreases in the average balance of other securities of $277.3 million, the average balance of loans of $183.3 million and the average balance of interest-earning deposits in financial institutions of $112.0 million, partially offset by an increase in the average balance of mortgage-backed securities of $422.3 million. The changes reflect the purchase of higher-yielding mortgage-related securities with excess cash and proceeds from the maturities of other securities.

Net interest margin increased by 48 basis points to 2.57% for the quarter ended June 30, 2025, from 2.09% for the quarter ended June 30, 2024. The increase in net interest margin was primarily due to higher yields on loans and mortgage-backed securities, coupled with a decrease in the cost of interest-bearing liabilities. Net interest income for the quarter ended June 30, 2025, included $609,000 of interest income related to the settlement of a non-accrual loan in May 2025. The Company accreted interest income related to PCD loans of $247,000 for the quarter ended June 30, 2025, as compared to $321,000 for the quarter ended June 30, 2024. Net interest income for the quarter ended June 30, 2025, included loan prepayment income of $522,000, as compared to $210,000 for the quarter ended June 30, 2024.

The provision for credit losses on loans increased by $2.7 million to $2.1 million for the quarter ended June 30, 2025, from a benefit of $618,000 for the quarter ended June 30, 2024, primarily due to an increase in general reserves related to a worsening macroeconomic forecast in the current quarter within our CECL model, an increase in specific reserves of $1.2 million, and changes in model assumptions, including a reduction in prepayment speeds. Partially offsetting the increase in reserves was a decline in loan balances and lower net charge-offs. Net charge-offs were $887,000 for the quarter ended June 30, 2025, primarily due to $879,000 in net charge-offs on small business unsecured commercial and industrial loans, as compared to net charge-offs of $1.6 million for the quarter ended June 30, 2024.

Non-interest income increased by $1.7 million, or 58.3%, to $4.5 million for the quarter ended June 30, 2025, from $2.9 million for the quarter ended June 30, 2024. The increase was primarily due to increases of $820,000 in gains on trading securities and $760,000 in income on bank-owned life insurance, primarily related to the exchange of certain policies in the fourth quarter of 2024 which have higher yields. Gains on trading securities in the three months ended June 30, 2025, were $1.0 million as compared to gains of $188,000 in the quarter ended June 30, 2024.

Non-interest expense remained stable at $23.0 million for both quarters ended June 30, 2025 and June 30, 2024.

The Company recorded income tax expense of $4.3 million for the quarter ended June 30, 2025, compared to $3.2 million for the quarter ended June 30, 2024. The effective tax rate for the quarter ended June 30, 2025, was 31.0% compared to 35.0% for the quarter ended June 30, 2024. In May 2025, options granted in 2015 expired and resulted in additional tax expense of $580,000 for the quarter ended June 30, 2025, as compared to options granted in 2014 that expired in June 2024 and resulted in additional tax expense of $795,000 for the quarter ended June 30, 2024.

Comparison of Operating Results for the Three Months Ended June 30, 2025 and March 31, 2025

Net income was $9.6 million and $7.9 million for the quarters ended June 30, 2025, and March 31, 2025, respectively. Significant variances from the prior quarter are as follows: a $2.6 million increase in net interest income, a $496,000 decrease in the provision for credit losses on loans, a $1.5 million increase in non-interest income, a $1.5 million increase in non-interest expense, and a $1.4 million increase in income tax expense.

Net interest income for the quarter ended June 30, 2025, increased by $2.6 million, or 8.2%, to $34.4 million, from $31.8 million for the quarter ended March 31, 2025, due to a $2.3 million increase in interest income and a $272,000 decrease in interest expense. The increase in interest income was primarily due to a 17 basis point increase in the yield on interest-earning assets, partially offset by a $49.1 million decrease in the average balance of interest-earning assets, primarily due to decreases in the average balance of loans of $62.4 million, the average balance of other securities of $61.5 million, and the average balance of interest-earning deposits in financial institutions of $39.5 million, which were partially offset by an increase in the average balance of mortgage-backed securities of $114.1 million. The changes reflect the purchase of higher-yielding mortgage-related securities with excess cash and proceeds from the maturities of other securities. The decrease in interest expense was primarily due to a $66.1 million, or 1.6%, decrease in the average balance of interest-bearing liabilities largely attributable to a $67.8 million decrease in the average balance of interest-bearing deposits.

Net interest margin increased by 19 basis points to 2.57% for the quarter ended June 30, 2025, from 2.38% for the quarter ended March 31, 2025, primarily due to higher yields on loans and mortgage-backed securities. Net interest income for the quarter ended June 30, 2025, included $609,000 of interest income related to the settlement of a non-accrual loan in May 2025. Net interest income for the quarter ended June 30, 2025, included loan prepayment income of $522,000 as compared to $245,000 for the quarter ended March 31, 2025. The Company accreted interest income related to PCD loans of $247,000 for the quarter ended June 30, 2025, as compared to $223,000 for the quarter ended March 31, 2025.

The provision for credit losses on loans decreased by $496,000 to $2.1 million for the quarter ended June 30, 2025, from $2.6 million for the quarter ended March 31, 2025. The decrease in the provision for the current quarter was primarily due to lower net charge-offs and a decline in loan balances, partially offset by an increase in specific reserves of $569,000 and an increase in general reserves due to a worsening macroeconomic forecast in the current quarter within our CECL model. Net charge-offs were $887,000 for the quarter ended June 30, 2025, as compared to net charge-offs of $2.8 million for the quarter ended March 31, 2025.

Non-interest income increased by $1.5 million, or 49.8%, to $4.5 million for the quarter ended June 30, 2025, from $3.0 million for the quarter ended March 31, 2025. The increase was primarily due to a $1.3 million increase in gains on trading securities, net. For the quarter ended June 30, 2025, gains on trading securities, net, were $1.0 million, compared to losses of $299,000 for the quarter ended March 31, 2025.

Non-interest expense increased by $1.5 million, or 7.2%, to $23.0 million for the quarter ended June 30, 2025, from $21.4 million for the quarter ended March 31, 2025. The increase was primarily due to a $2.0 million increase in compensation and employee benefits, of which $1.3 million was attributable to an increase in deferred compensation expense and has no effect on net income due to offsetting gains on trading securities. The remaining increase in compensation and employee benefits was primarily due to higher salary expense related to an increase in headcount during the current quarter as well as recognizing a full quarter of merit-related increases as compared to one month in the prior quarter. Additionally, there was a $280,000 increase in data processing costs attributable to an increase in core system expenses. Partially offsetting the increases were decreases of $205,000 in occupancy expense, $169,000 in professional fees, $210,000 in other expense, and $156,000 in credit loss expense/(benefit) for off-balance sheet exposure. The decrease in credit loss expense/(benefit) for off-balance sheet exposure was due to a benefit of $53,000 recorded during the quarter ended June 30, 2025, as compared to a provision of $103,000 recorded during the quarter ended March 31, 2025.

The Company recorded income tax expense of $4.3 million for the quarter ended June 30, 2025, compared to $2.9 million for the quarter ended March 31, 2025. The effective tax rate for the quarter ended June 30, 2025 was 31.0%, compared to 27.0% for the quarter ended March 31, 2025. During the quarter ended June 30, 2025, options granted in 2015 expired and resulted in additional tax expense of $580,000, contributing to the higher effective tax rate for the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025.

Financial Condition

Total assets increased by $12.9 million, or 0.2%, to $5.68 billion at June 30, 2025, from $5.67 billion at December 31, 2024. The increase was primarily due to an increase in available-for-sale debt securities of $200.2 million, or 18.2%, partially offset by decreases in loans receivable of $106.5 million, or 2.6%, cash and cash equivalents of $70.2 million, or 41.8% and other assets of $9.6 million, or 20.4%.

Cash and cash equivalents decreased by $70.1 million, or 41.8%, to $97.6 million at June 30, 2025, from $167.7 million at December 31, 2024, as excess liquidity was deployed into purchasing higher-yielding mortgage-backed securities. Balances fluctuate based on the timing of receipt of security and loan repayments and the redeployment of cash into higher-yielding assets such as loans and securities, or the funding of deposit outflows or borrowing maturities.

Loans held-for-investment, net, decreased by $101.6 million, or 2.5%, to $3.92 billion at June 30, 2025 from $4.02 billion at December 31, 2024, primarily due to a decrease in multifamily real estate loans, partially offset by increases in one-to-four family residential mortgage and home equity and lines of credit loans. The decrease in loan balances reflects the Company’s continued strategic focus on managing concentration risk within its commercial and multifamily real estate loan portfolios, while maintaining disciplined loan pricing. Multifamily loans decreased $114.4 million, or 4.4%, to $2.48 billion at June 30, 2025 from $2.60 billion at December 31, 2024, commercial and industrial loans decreased $4.9 million, or 3.0%, to $158.5 million at June 30, 2025 from $163.4 million at December 31, 2024, commercial real estate loans decreased $3.7 million, or 0.4%, to $886.1 million at June 30, 2025 from $889.8 million at December 31, 2024, and construction and land loans decreased $3.6 million, or 10.0%, to $32.3 million at June 30, 2025 from $35.9 million at December 31, 2024. Partially offsetting these decreases were increases in home equity and lines of credit of $12.8 million, or 7.3%, to $186.8 million at June 30, 2025 from $174.1 million at December 31, 2024, and one-to-four family residential loans of $12.5 million, or 8.3%, to $162.8 million at June 30, 2025 from $150.2 million at December 31, 2024.

As of June 30, 2025, non-owner occupied commercial real estate loans (as defined by regulatory guidance) to total risk-based capital was estimated at approximately 416%. Management believes that Northfield Bank (the “Bank”) maintains appropriate risk management practices including risk assessments, board-approved underwriting policies and related procedures, which includes monitoring Bank portfolio performance, performing market analysis (economic and real estate), and stressing of the Bank’s commercial real estate portfolio under severe, adverse economic conditions. Although management believes the Bank has implemented appropriate policies and procedures to manage its commercial real estate concentration risk, the Bank’s regulators could require it to implement additional policies and procedures or could require it to maintain higher levels of regulatory capital, which might adversely affect its loan originations, the Company’s ability to pay dividends, and overall profitability.

Our real estate portfolio includes credit risk exposure to loans collateralized by office buildings and multifamily properties in New York subject to some form of rent regulation limiting rent increases for rent stabilized multifamily properties. At June 30, 2025, office-related loans represented $178.8 million, or 4.6% of our total loan portfolio, with an average balance of $1.8 million (although we have originated these type of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 58%. Approximately 39% were owner-occupied. The geographic locations of the properties collateralizing our office-related loans are: 49.9% in New York, 48.6% in New Jersey and 1.5% in Pennsylvania. At June 30, 2025, our largest office-related loan had a principal balance of $90.0 million (with a net active principal balance for the Bank of $29.3 million as we have a 33.3% participation interest), was secured by an office facility located in Staten Island, New York, and was performing in accordance with its original contractual terms. At June 30, 2025, multifamily loans that have some form of rent stabilization or rent control totaled $434.1 million, or 11% of our total loan portfolio, with an average balance of $1.7 million (although we have originated these type of loans in amounts substantially greater than this average) and a weighted average loan-to-value ratio of 50%. At June 30, 2025, our largest rent-regulated loan had a principal balance of $16.6 million, was secured by an apartment building located in Staten Island, New York, and was performing in accordance with its original contractual terms. Management continues to closely monitor its office and rent-regulated portfolios. For further details on our rent-regulated multifamily portfolio see “Asset Quality”.

PCD loans totaled $9.0 million and $9.2 million at June 30, 2025 and December 31, 2024, respectively. The majority of the remaining PCD loan balance consists of loans acquired as part of a Federal Deposit Insurance Corporation-assisted transaction. The Company accreted interest income of $247,000 and $469,000 attributable to PCD loans for the three and six months ended June 30, 2025, respectively, compared to $321,000 and $747,000 for the three and six months ended June 30, 2024, respectively. PCD loans had an allowance for credit losses of approximately $2.7 million at June 30, 2025.

Loan balances are summarized as follows (dollars in thousands):

	June 30, 2025		March 31, 2025		December 31, 2024
Real estate loans:
Multifamily	$	2,483,078	$	2,567,913	$	2,597,484
Commercial mortgage		886,135		882,600		889,801
One-to-four family residential mortgage		162,750		146,791		150,217
Home equity and lines of credit		186,848		181,354		174,062
Construction and land		32,300		40,284		35,897
Total real estate loans		3,751,111		3,818,942		3,847,461
Commercial and industrial loans		158,539		162,133		163,425
Other loans		2,008		1,411		2,165
Total commercial and industrial and other loans		160,547		163,544		165,590
Loans held-for-investment, net (excluding PCD)		3,911,658		3,982,486		4,013,051
PCD loans		8,955		9,043		9,173
Total loans held-for-investment, net	$	3,920,613	$	3,991,529	$	4,022,224

Other assets decreased by $9.6 million, or 20.4%, to $37.4 million at June 30, 2025, from $46.9 million at December 31, 2024. The decrease was primarily attributable to a decrease in deferred tax assets primarily due to a decrease in unrealized losses on the securities available-for-sale portfolio.

The Company’s available-for-sale debt securities portfolio increased by $200.2 million, or 18.2%, to $1.30 billion at June 30, 2025, from $1.10 billion at December 31, 2024. The increase was primarily attributable to purchases of securities, partially offset by paydowns and maturities. At June 30, 2025, $1.27 billion of the portfolio consisted of residential mortgage-backed securities issued or guaranteed by Fannie Mae, Freddie Mac, or Ginnie Mae. In addition, the Company held $29.7 million in corporate bonds, substantially all of which were investment grade, $684,000 in municipal bonds and $613,000 in U.S. Government agency securities at June 30, 2025. Unrealized losses, net of tax, on available-for-sale debt securities and held-to-maturity securities approximated $14.6 million and $276,000, respectively, at June 30, 2025, and $21.8 million and $400,000, respectively, at December 31, 2024.

Equity securities were $6.3 million at June 30, 2025 and $14.3 million at December 31, 2024. Equity securities are primarily comprised of an investment in a Small Business Administration (“SBA”) Loan Fund. This investment is utilized by the Bank as part of its Community Reinvestment Act program. The decrease in equity securities was primarily due to a redemption, at par, of $5.0 million of our investment in the SBA Loan Fund during the quarter ended June 30, 2025.

Total liabilities increased $7.3 million, or 0.1%, to $4.97 billion at June 30, 2025, from $4.96 billion at December 31, 2024. The increase was primarily attributable to an increase in borrowings of $165.5 million, partially offset by a decrease in deposits of $152.3 million. The Company routinely utilizes brokered deposits and borrowed funds to manage interest rate risk, the cost of interest-bearing liabilities, and funding needs related to loan originations and deposit activity.

Deposits decreased $152.3 million, or 3.7%, to $3.99 billion at June 30, 2025 as compared to $4.14 billion at December 31, 2024. Brokered deposits decreased by $188.4 million, or 71.5%, as the Company placed less reliance on brokered deposits, which were used as a lower-cost alternative to borrowings in the quarter ended December 31, 2024. Deposits, excluding brokered deposits, increased $36.0 million, or 0.9%. The increase in deposits, excluding brokered deposits, was primarily attributable to increases of $73.7 million in transaction accounts and $9.6 million in time deposits, partially offset by decreases of $29.2 million in savings accounts, and $18.0 million in money market accounts. Growth in transaction accounts and time deposits was primarily due to new municipal relationships and new commercial customer relationships.

Estimated gross uninsured deposits at June 30, 2025 were $1.87 billion. This total includes fully collateralized uninsured governmental deposits and intercompany deposits of $940.6 million, leaving estimated uninsured deposits of approximately $929.2 million, or 23.1%, of total deposits. At December 31, 2024, estimated uninsured deposits, excluding fully collateralized uninsured governmental deposits and intercompany deposits, totaled $896.5 million, or 21.7% of total deposits.

Deposit account balances are summarized as follows (dollars in thousands):

	June 30, 2025		March 31, 2025		December 31, 2024
Transaction:
Non-interest bearing checking	$	735,811	$	722,994	$	706,976
Negotiable orders of withdrawal and interest-bearing checking		1,331,060		1,367,219		1,286,154
Total transaction		2,066,871		2,090,213		1,993,130
Savings and money market:
Savings		874,927		899,674		904,163
Money market		254,154		271,566		272,145
Total savings		1,129,081		1,171,240		1,176,308
Certificates of deposit:
$250,000 and under		573,612		602,959		580,940
Over $250,000		141,623		144,255		124,681
Brokered deposits		75,000		123,289		263,418
Total certificates of deposit		790,235		870,503		969,039
Total deposits	$	3,986,187	$	4,131,956	$	4,138,477

Included in the table above are business and municipal deposit account balances as follows (dollars in thousands):

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

Business customers	$	907,464	$	891,545	$	885,769
Municipal (governmental) customers	$	892,652	$	929,611	$	859,319

Borrowed funds increased to $893.5 million at June 30, 2025, from $727.8 million at December 31, 2024. The increase in borrowings for the period was primarily due to a $55.0 million increase in borrowings under an overnight line of credit, and a $110.5 million increase in other borrowings. Management utilizes borrowings to mitigate interest rate risk, for short-term liquidity, and to a lesser extent from time to time, as part of leverage strategies.

The following table sets forth borrowing maturities (excluding overnight borrowings and subordinated debt) and the weighted average rate by year at June 30, 2025 (dollars in thousands):

Year	Amount	Weighted Average Rate
2025	$295,684	4.44%
2026	148,000	4.36%
2027	173,000	3.19%
2028	154,288	3.96%
	$770,972	4.05%

Total stockholders’ equity increased by $5.6 million to $710.3 million at June 30, 2025, from $704.7 million at December 31, 2024. The increase was attributable to net income of $17.4 million for the six months ended June 30, 2025, an $11.9 million increase in accumulated other comprehensive income associated with an increase in the estimated fair value of our debt securities available-for-sale portfolio, and a $2.0 million increase in equity award activity, partially offset by $15.0 million in stock repurchases and $10.7 million in dividend payments. On February 26, 2025, the Board of Directors of the Company approved a $5.0 million stock repurchase program, and on April 23, 2025, the Board of Directors approved a $10.0 million stock repurchase program. During the six months ended June 30, 2025, the Company repurchased 1.3 million shares of its common stock outstanding at an average price of $11.52 for a total of $15.0 million pursuant to the approved stock repurchase plans. As of June 30, 2025, the Company has no outstanding repurchase program.

The Company’s most liquid assets are cash and cash equivalents, corporate bonds, and unpledged mortgage-related securities issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac, that we can either borrow against or sell. We also have the ability to surrender bank-owned life insurance contracts. The surrender of these contracts would subject the Company to income taxes and penalties for increases in the cash surrender values over the original premium payments. We also have the ability to obtain additional funding from the Federal Home Loan Bank and Federal Reserve Bank of New York utilizing unencumbered and unpledged securities and multifamily loans. The Company expects to have sufficient funds available to meet current commitments in the normal course of business. The Company’s on-hand liquidity ratio as of June 30, 2025 was 18.3%.

The Company had the following primary sources of liquidity at June 30, 2025 (dollars in thousands):

Cash and cash equivalents⁽¹⁾	$	85,652
Corporate bonds⁽²⁾	$	15,525
Multifamily loans⁽²⁾	$	1,074,872
Mortgage-backed securities (issued or guaranteed by the U.S. Government, Fannie Mae, or Freddie Mac)⁽²⁾	$	791,369

(1) Excludes $12.0 million of cash at Northfield Bank.
(2) Represents estimated remaining borrowing potential.

The Company and the Bank utilize the Community Bank Leverage Ratio (“CBLR”) framework. At June 30, 2025, the Company’s and the Bank’s estimated CBLR ratios were 12.09% and 12.56%, respectively, which exceeded the minimum requirement to be considered well-capitalized of 9%.

Asset Quality

The following table details total non-accrual loans (excluding PCD), non-performing assets, loans over 90 days delinquent on which interest is accruing, and accruing loans 30 to 89 days delinquent at June 30, 2025, March 31, 2025 and December 31, 2024 (dollars in thousands):

	June 30, 2025			March 31, 2025			December 31, 2024
Non-accrual loans:
Held-for-investment
Real estate loans:
Multifamily	$	2,521		$	2,565		$	2,609
Commercial mortgage		4,555			4,565			4,578
Home equity and lines of credit		1,264			1,267			1,270
Commercial and industrial		4,517			4,972			5,807
Total non-accrual loans		12,857			13,369			14,264
Loans delinquent 90 days or more and still accruing:
Held-for-investment
Real estate loans:
Multifamily		—			—			164
Commercial mortgage		74			—			—
One-to-four family residential		871			878			882
Home equity and lines of credit		177			140			140
Commercial and industrial		121			—			—
Total loans held-for-investment delinquent 90 days or more and still accruing		1,243			1,018			1,186
Non-performing loans held-for-sale:
Commercial mortgage		—			4,397			4,397
Commercial and industrial		—			500			500
Total non-performing loans held-for-sale		—			4,897			4,897
Total non-performing loans		14,100			19,284			20,347
Total non-performing assets	$	14,100		$	19,284		$	20,347
Non-performing loans to total loans		0.36	%		0.48	%		0.51	%
Non-performing assets to total assets		0.25	%		0.34	%		0.36	%
Accruing loans 30 to 89 days delinquent	$	4,076		$	6,845		$	9,336

The decrease in non-performing loans held-for-sale from March 31, 2025, and December 31, 2024, was due to repayment of the loans in full from a settlement agreement in bankruptcy.

Accruing Loans 30 to 89 Days Delinquent

Loans 30 to 89 days delinquent and on accrual status totaled $4.1 million, $6.8 million and $9.3 million at June 30, 2025, March 31, 2025 and December 31, 2024, respectively. The following table sets forth delinquencies for accruing loans by type and by amount at June 30, 2025, March 31, 2025 and December 31, 2024 (dollars in thousands):

	June 30, 2025		March 31, 2025		December 31, 2024
Held-for-investment
Real estate loans:
Multifamily	$	1,230	$	1,296	$	2,831
Commercial mortgage		14		147		78
One-to-four family residential		741		2,584		2,407
Home equity and lines of credit		1,398		1,141		1,472
Commercial and industrial loans		693		1,674		2,545
Other loans		—		3		3
Total delinquent accruing loans held-for-investment	$	4,076	$	6,845	$	9,336

PCD Loans (Held-for-Investment)

The Company accounts for PCD loans at estimated fair value using discounted expected future cash flows deemed to be collectible on the date acquired. Based on its detailed review of PCD loans and experience in loan workouts, management believes it has a reasonable expectation about the amount and timing of future cash flows and accordingly has classified PCD loans ($9.0 million at June 30, 2025 and $9.2 million at December 31, 2024, respectively) as accruing, even though they may be contractually past due. At June 30, 2025, 2.3% of PCD loans were past due 30 to 89 days, and 25.5% were past due 90 days or more, as compared to 2.1% and 24.9%, respectively, at December 31, 2024.

Our multifamily loan portfolio at June 30, 2025 totaled $2.48 billion, or 63% of our total loan portfolio, of which $434.1 million, or 11%, of our total loan portfolio included loans collateralized by properties in New York with units subject to some percentage of rent regulation. The table below sets forth details about our multifamily loan portfolio in New York (dollars in thousands).

% Rent Regulated	Balance		% Portfolio Total NY Multifamily Portfolio		Average Balance		Largest Loan		LTV^*		Debt Service Coverage Ratio (DSCR)^*	30-89 Days Delinquent		Non-Accrual		Special Mention		Substandard
0	$	294,926	40.5	%	$	1,229	$	16,361	50.6	%	1.50x	$	155	$	481	$	—	$	1,015
>0-10		4,673	0.6			1,558		2,097	50.6		1.33		—		—		—		—
>10-20		18,258	2.5			1,404		2,818	48.4		1.59		—		—		—		—
>20-30		19,159	2.6			2,129		5,417	48.1		1.55		—		—		—		—
>30-40		15,884	2.2			1,324		3,012	43.2		1.74		—		—		—		—
>40-50		21,438	2.9			1,261		2,701	46.7		1.68		—		—		—		—
>50-60		9,222	1.3			1,537		2,299	39.1		1.80		—		—		—		—
>60-70		21,815	3.0			2,727		11,102	53.2		1.50		—		—		—		—
>70-80		22,038	3.0			2,449		4,855	47.3		1.55		—		—		—		—
>80-90		19,547	2.7			1,150		3,113	45.9		1.66		—		—		1,118		—
>90-100		282,037	38.7			1,730		16,594	51.3		1.54		—		2,040		3,608		4,342
Total	$	728,997	100.0	%	$	1,467	$	16,594	50.2	%	1.54x	$	155	$	2,521	$	4,726	$	5,357

The table below sets forth our New York rent-regulated loans by county (dollars in thousands).

County	Balance		LTV^*	DSCR^*
Bronx	$	116,252	50.9%	1.51x
Kings		184,424	49.4%	1.58
Nassau		2,145	35.7%	2.13
New York		48,532	46.0%	1.62
Queens		37,359	44.1%	1.69
Richmond		32,031	59.8%	1.41
Westchester		13,327	58.4%	1.44
Total	$	434,070	49.9%	1.56x

* Weighted Average

None of the loans that are rent-regulated in New York are interest only. During the remainder of 2025, 13 loans with an aggregate principal balance of $23.6 million will re-price.

About Northfield Bank

Northfield Bank, founded in 1887, operates 37 full-service banking offices in Staten Island and Brooklyn, New York, and Hunterdon, Middlesex, Mercer, and Union counties, New Jersey. For more information about Northfield Bank, please visit www.eNorthfield.com.

Forward-Looking Statements: This release may contain certain “forward looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, and may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Northfield Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Northfield Bancorp, Inc. may turn out to be wrong. They can be affected by inaccurate assumptions Northfield Bancorp, Inc. might make or by known or unknown risks and uncertainties as described in our SEC filings, including, but not limited to, those related to general economic conditions, particularly in the market areas in which the Company operates, competition and demand for financial services in our market area, competition among depository and other financial institutions, including with respect to fees and interest rates, fluctuations in residential and commercial real estate values and market conditions, changes in liquidity, the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio, our ability to access cost-effective funding, changes in laws or government regulations or policies affecting financial institutions, including changes in the monetary policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the imposition of tariffs or other domestic or international governmental policies and retaliatory responses, changes in the quality and/or composition of our loan and securities portfolios, prepayment speeds, charge-offs and/or credit loss provisions, changes in the value of our goodwill or other intangible assets, changes in regulatory fees, assessments and capital requirements, inflation and changes in the interest rate environment that reduce our margins, reduce the fair value of financial instruments or reduce our ability to originate loans, the failure to maintain current technologies and to successfully implement future information technology enhancements, cyber security and fraud risks against our information technology and those of our third-party providers, the ability of third-party providers to perform their obligations to us, the effects of war, conflict, and acts of terrorism, our ability to successfully integrate acquired entities, and adverse changes in the securities markets. Consequently, no forward-looking statement can be guaranteed. Northfield Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release, or conform these statements to actual events.

(Tables follow)

NORTHFIELD BANCORP, INC. SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA (Dollars in thousands, except per share amounts) (unaudited)


	At or For the Three Months Ended						At or For the Six Months Ended
	June 30,				March 31,		June 30,
	2025		2024		2025		2025		2024
Selected Financial Ratios:
Performance Ratios ⁽¹⁾
Return on assets (ratio of net income to average total assets)	0.68	%	0.41	%	0.56	%	0.62	%	0.42	%
Return on equity (ratio of net income to average equity)	5.41		3.45		4.52		4.97		3.52
Average equity to average total assets	12.56		12.00		12.43		12.50		12.02
Interest rate spread	1.94		1.44		1.76		1.84		1.41
Net interest margin	2.57		2.09		2.38		2.48		2.06
Efficiency ratio ⁽²⁾	59.02		72.89		61.57		60.22		72.16
Non-interest expense to average total assets	1.63		1.60		1.53		1.58		1.58
Non-interest expense to average total interest-earning assets	1.72		1.68		1.61		1.66		1.65
Average interest-earning assets to average interest-bearing liabilities	130.31		128.47		129.42		129.87		128.57
Asset Quality Ratios:
Non-performing assets to total assets	0.25		0.30		0.34		0.25		0.30
Non-performing loans ⁽³⁾ to total loans ⁽⁴⁾	0.36		0.42		0.48		0.36		0.42
Allowance for credit losses to non-performing loans ⁽⁵⁾	256.15		200.96		242.73		256.15		200.96
Allowance for credit losses to total loans held-for-investment, net ⁽⁶⁾	0.92		0.85		0.87		0.92		0.85

(1) Annualized where appropriate.
(2) The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income.
(3) Non-performing loans consist of non-accruing loans and loans 90 days or more past due and still accruing (excluding PCD loans), and are included in total loans held-for-investment, net.
(4)  Includes originated loans held-for-investment, PCD loans, acquired loans and loans held-for-sale.
(5)  Excludes loans held-for-sale.
(6)  Includes originated loans held-for-investment, PCD loans, and acquired loans.


NORTHFIELD BANCORP, INC. CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except share and per share amounts) (unaudited)

	June 30, 2025			March 31, 2025			December 31, 2024
ASSETS:
Cash and due from banks	$	11,985		$	12,523		$	13,043
Interest-bearing deposits in other financial institutions		85,652			89,139			154,701
Total cash and cash equivalents		97,637			101,662			167,744
Trading securities		14,052			13,003			13,884
Debt securities available-for-sale, at estimated fair value		1,300,975			1,246,473			1,100,817
Debt securities held-to-maturity, at amortized cost		8,454			8,883			9,303
Equity securities		6,278			10,855			14,261
Loans held-for-sale		—			4,897			4,897
Loans held-for-investment, net		3,920,613			3,991,529			4,022,224
Allowance for credit losses		(36,120	)		(34,921	)		(35,183	)
Net loans held-for-investment		3,884,493			3,956,608			3,987,041
Accrued interest receivable		19,241			19,648			19,078
Bank-owned life insurance		179,134			177,398			175,759
Federal Home Loan Bank of New York stock, at cost		43,664			38,350			35,894
Operating lease right-of-use assets		26,157			27,345			27,771
Premises and equipment, net		20,842			21,431			21,985
Goodwill		41,012			41,012			41,012
Other assets		37,352			42,435			46,932
Total assets	$	5,679,291		$	5,710,000		$	5,666,378

LIABILITIES AND STOCKHOLDERS’ EQUITY:
LIABILITIES:
Deposits	$	3,986,187		$	4,131,956		$	4,138,477
Federal Home Loan Bank advances and other borrowings		831,920			709,159			666,402
Subordinated debentures, net of issuance costs		61,554			61,498			61,442
Lease liabilities		30,286			31,630			32,209
Advance payments by borrowers for taxes and insurance		25,287			29,270			24,057
Accrued expenses and other liabilities		33,783			35,338			39,095
Total liabilities		4,969,017			4,998,851			4,961,682

STOCKHOLDERS’ EQUITY:
Total stockholders’ equity		710,274			711,149			704,696
Total liabilities and stockholders’ equity	$	5,679,291		$	5,710,000		$	5,666,378

Total shares outstanding		41,819,988			42,676,274			42,903,598
Tangible book value per share⁽¹⁾	$	16.00		$	15.70		$	15.46

(1) Tangible book value per share is calculated based on total stockholders’ equity, excluding intangible assets (goodwill and core deposit intangibles), divided by total shares outstanding as of the balance sheet date. Core deposit intangibles were $45, $57 and $69 at June 30, 2025, March 31, 2025 and December 31, 2024, respectively, and are included in other assets.


NORTHFIELD BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except share and per share amounts) (unaudited)

	For the Three Months Ended									For the Six Months Ended
	June 30,						March 31,			June 30,
		2025			2024			2025			2025		2024
Interest income:
Loans	$	46,661		$	45,967		$	45,283		$	91,944	$	92,014
Mortgage-backed securities		13,888			7,355			12,009			25,897		11,753
Other securities		442			3,506			797			1,239		7,347
Federal Home Loan Bank of New York dividends		728			935			862			1,590		1,905
Deposits in other financial institutions		706			2,457			1,141			1,847		5,849
Total interest income		62,425			60,220			60,092			122,517		118,868
Interest expense:
Deposits		20,285			20,664			21,191			41,476		39,937
Borrowings		6,916			10,041			6,291			13,207		20,704
Subordinated debt		828			828			819			1,647		1,656
Total interest expense		28,029			31,533			28,301			56,330		62,297
Net interest income		34,396			28,687			31,791			66,187		56,571
Provision/(benefit) for credit losses		2,086			(618	)		2,582			4,668		(203	)
Net interest income after provision/(benefit) for credit losses		32,310			29,305			29,209			61,519		56,774
Non-interest income:
Fees and service charges for customer services		1,685			1,570			1,620			3,305		3,185
Income on bank-owned life insurance		1,736			976			1,639			3,375		1,940
Gains on available-for-sale debt securities, net		—			1			—			—		1
Gains/(losses) on trading securities, net		1,008			188			(299	)		709		887
Gain on sale of loans		—			51			—			—		51
Other		97			73			62			159		176
Total non-interest income		4,526			2,859			3,022			7,548		6,240
Non-interest expense:
Compensation and employee benefits		13,728			13,388			11,775			25,503		26,153
Occupancy		3,328			3,222			3,533			6,861		6,775
Furniture and equipment		411			477			414			825		961
Data processing		2,402			2,177			2,122			4,524		4,324
Professional fees		903			681			1,072			1,975		1,490
Advertising		294			482			250			544		1,000
Federal Deposit Insurance Corporation insurance		618			649			617			1,235		1,237
Credit (benefit) loss expense for off-balance sheet exposures		(53	)		103			103			50		186
Other		1,339			1,814			1,549			2,888		3,199
Total non-interest expense		22,970			22,993			21,435			44,405		45,325
Income before income tax expense		13,866			9,171			10,796			24,662		17,689
Income tax expense		4,295			3,214			2,920			7,215		5,518
Net income	$	9,571		$	5,957		$	7,876		$	17,447	$	12,171
Net income per common share:
Basic	$	0.24		$	0.14		$	0.19			0.43		0.29
Diluted	$	0.24		$	0.14		$	0.19			0.43		0.29
Basic average shares outstanding		40,183,613			41,999,541			40,864,529			40,522,193		42,181,306
Diluted average shares outstanding		40,204,833			42,002,650			40,922,829			40,561,953		42,203,715


NORTHFIELD BANCORP, INC. ANALYSIS OF NET INTEREST INCOME (Dollars in thousands) (unaudited)

	For the Three Months Ended
	June 30, 2025						March 31, 2025						June 30, 2024
	Average Outstanding Balance		Interest		Average Yield/ Rate ⁽¹⁾		Average Outstanding Balance		Interest		Average Yield/ Rate ⁽¹⁾		Average Outstanding Balance		Interest		Average Yield/ Rate ⁽¹⁾
Interest-earning assets:
Loans ⁽²⁾	$	3,944,822	$	46,661	4.74	%	$	4,007,266	$	45,283	4.58	%	$	4,128,105	$	45,967	4.48	%
Mortgage-backed securities ⁽³⁾		1,246,843		13,888	4.47			1,132,715		12,009	4.30			824,498		7,355	3.59
Other securities ⁽³⁾		56,559		442	3.13			118,082		797	2.74			333,855		3,506	4.22
Federal Home Loan Bank of New York stock		37,225		728	7.84			36,929		862	9.47			38,707		935	9.72
Interest-earning deposits in financial institutions		79,463		706	3.56			118,983		1,141	3.89			191,470		2,457	5.16
Total interest-earning assets		5,364,912		62,425	4.67			5,413,975		60,092	4.50			5,516,635		60,220	4.39
Non-interest-earning assets		280,107						277,586						265,702
Total assets	$	5,645,019					$	5,691,561					$	5,782,337

Interest-bearing liabilities:
Savings, NOW, and money market accounts	$	2,491,340	$	12,227	1.97	%	$	2,502,664	$	12,148	1.97	%	$	2,490,372	$	13,183	2.13	%
Certificates of deposit		867,268		8,058	3.73			923,713		9,043	3.97			701,272		7,481	4.29
Total interest-bearing deposits		3,358,608		20,285	2.42			3,426,377		21,191	2.51			3,191,644		20,664	2.60
Borrowed funds		696,874		6,916	3.98			695,281		6,291	3.67			1,041,035		10,041	3.88
Subordinated debt		61,517		828	5.40			61,461		819	5.40			61,294		828	5.43
Total interest-bearing liabilities		4,116,999		28,029	2.73			4,183,119		28,301	2.74			4,293,973		31,533	2.95
Non-interest bearing deposits		723,693						706,217						691,384
Accrued expenses and other liabilities		95,047						94,819						103,082
Total liabilities		4,935,739						4,984,155						5,088,439
Stockholders’ equity		709,280						707,406						693,898
Total liabilities and stockholders’ equity	$	5,645,019					$	5,691,561					$	5,782,337

Net interest income			$	34,396					$	31,791					$	28,687
Net interest rate spread ⁽⁴⁾					1.94	%					1.76	%					1.44	%
Net interest-earning assets ⁽⁵⁾	$	1,247,913					$	1,230,856					$	1,222,662
Net interest margin ⁽⁶⁾					2.57	%					2.38	%					2.09	%
Average interest-earning assets to interest-bearing liabilities					130.31	%					129.42	%					128.47	%

(1) Average yields and rates are annualized.
(2) Includes non-accruing loans.
(3) Securities available-for-sale and other securities are reported at amortized cost.
(4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.


	For the Six Months Ended
	June 30, 2025						June 30, 2024
	Average Outstanding Balance		Interest		Average Yield/ Rate ⁽¹⁾		Average Outstanding Balance		Interest		Average Yield/ Rate ⁽¹⁾
Interest-earning assets:
Loans ⁽²⁾	$	3,975,872	$	91,944	4.66	%	$	4,151,387	$	92,014	4.46	%
Mortgage-backed securities ⁽³⁾		1,190,095		25,897	4.39			736,654		11,753	3.21
Other securities ⁽³⁾		87,150		1,239	2.87			362,917		7,347	4.07
Federal Home Loan Bank of New York stock		37,078		1,590	8.65			39,153		1,905	9.78
Interest-earning deposits in financial institutions		99,114		1,847	3.76			227,177		5,849	5.18
Total interest-earning assets		5,389,309		122,517	4.58			5,517,288		118,868	4.33
Non-interest-earning assets		278,852						266,065
Total assets	$	5,668,161					$	5,783,353

Interest-bearing liabilities:
Savings, NOW, and money market accounts	$	2,496,970	$	24,375	1.97	%	$	2,477,334	$	25,514	2.07	%
Certificates of deposit		895,335		17,101	3.85			677,800		14,423	4.28
Total interest-bearing deposits		3,392,305		41,476	2.47			3,155,134		39,937	2.55
Borrowed funds		696,082		13,207	3.83			1,074,957		20,704	3.87
Subordinated debt		61,489		1,647	5.40			61,266		1,656	5.44
Total interest-bearing liabilities	$	4,149,876		56,330	2.74		$	4,291,357		62,297	2.92
Non-interest bearing deposits		715,003						695,512
Accrued expenses and other liabilities		94,934						101,339
Total liabilities		4,959,813						5,088,208
Stockholders’ equity		708,348						695,145
Total liabilities and stockholders’ equity	$	5,668,161					$	5,783,353

Net interest income			$	66,187					$	56,571
Net interest rate spread ⁽⁴⁾					1.84	%					1.41	%
Net interest-earning assets ⁽⁵⁾	$	1,239,433					$	1,225,931
Net interest margin ⁽⁶⁾					2.48	%					2.06	%
Average interest-earning assets to interest-bearing liabilities					129.87	%					128.57	%

(1) Average yields and rates are annualized.
(2) Includes non-accruing loans.
(3) Securities available-for-sale and other securities are reported at amortized cost.
(4) Net interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.
(5) Net interest-earning assets represent total interest-earning assets less total interest-bearing liabilities.
(6) Net interest margin represents net interest income divided by average total interest-earning assets.

Company Contact:
William R. Jacobs
Chief Financial Officer
Tel: (732) 499-7200 ext. 2519

The MIL Network –

July 24, 2025

MIL-OSI United Kingdom: £30 million to decarbonise shipping, boost careers and deliver growth across the UK

Source: United Kingdom – Government Statements

Press release

£30 million to decarbonise shipping, boost careers and deliver growth across the UK

Funding will be crucial in supporting the green fuels and technologies of the future, so we can clean up sea travel and trade.

coastal communities across the UK will benefit from £30 million to make shipping and sea travel greener, boosting local economies, and supporting jobs and skills
decarb funding is helping to revitalise Glasgow’s strong shipbuilding heritage, as Maritime Minister heralds a new Scottish-built high-tech wing sail which can save ships up to 40% per annum in fuel and emissions
latest boost builds on over £136 million for already delivered to more than 142 organisations across every region in the UK, delivering on the government’s Plan for Change missions to kickstart economic growth and become a clean energy superpower.

Coastal communities across the UK are to benefit from £30 million funding to decarbonise shipping and power up local economies the Maritime Minister will announce today (24 July 2025) during a visit to Clydeport in Glasgow.

Awarded from the sixth round of the Clean Maritime Demonstration Competition (CMDC), successful companies will be given a share of funding to support the development of clean maritime fuels and technologies such as ammonia, hydrogen, methanol, solar and electric.

Investment in green fuels not only supports the decarbonisation of shipping, helping cement the UK as a clean energy superpower, it also revitalises coastal communities by growing local economies and boosting jobs and skills.

CMDC has provided over £136 million funding to date to 142 organisations, as part of the wider UK SHORE funding – the government’s flagship programme dedicated to decarbonising maritime – for over 300 organisations, including 250 SMEs. Successful projects include the installation of electric chargepoint networks across ports, including at Aberdeen, the demonstration of an electric crew transfer vessel at Aberdeen Offshore Wind Farm, and the demonstration of a green hydrogen shore power system at the port of Leith.

Maritime Minister Mike Kane said:

It’s so exciting to see investment in green fuels and technologies spurring on skills, innovation and manufacturing across the UK, delivering on our Plan for Change missions to kickstart economic growth and become a clean energy superpower.

We’ve charted a course to net zero shipping by 2050 and this £30 million will be crucial in supporting the green fuels and technologies of the future, so we can clean up sea travel and trade.

During his visit to Clydeport, the minister will meet with workers from the National Manufacturing Institute Scotland, which is looking to help Smart Green Shipping scale up the manufacturing of the FastRig windsail going forward. Built nearby in Glasgow, the FastRig is a high-tech wing sail which can be installed onto vessels, reducing fuel use and emissions by up to 40% per annum. The project received £3.3 million from the third round of the CMDC and has now been successfully deployed at sea.

Chris Courtney, CEO, National Manufacturing Institute Scotland said:

Clean maritime is a vital part of a wider mission to decarbonise transport. Advanced manufacturing is critical to enable companies to scale up novel solutions that deliver emissions reductions and allow the creation of new jobs in these industries of the future.

We’ve spent the past 2 years working on the CMDC-funded MariLight projects, led by Glasgow-based Malin Marine Consultants, part of the Malin Group, supported by industry partners, where we demonstrated how advanced manufacturing can cut lead times, lower carbon, and enable localised production in shipbuilding. It’s great to see continued momentum through the programme, and we look forward to supporting Smart Green Shipping’s journey as it scales.

Diane Gilpin, Smart Green Shipping (SGS), CEO said:

CMDC3 support enabled SGS, a Scottish based business, to demonstrate the safety and robustness of FastRig, our Cyldebuilt wingsails, and to build out our digital decision-making platform, FastReach, which underpins our unique wind-as-a-service proposition.

Over the last 3 years SGS has invested £7.6 million in R&D, 60% of that in Scotland. We’ve drawn upon engineering design skills in adjacent sectors like renewables and oil and gas, and digital expertise created in Scotland’s vibrant tech community. We are also working alongside the National Manufacturing Institute of Scotland to design circular manufacturing solutions to reduce embedded emissions and minimise use of precious materials while creating good green jobs as part of a sustainable just transition.

The minister will meet with Peel Ports and local workers at Clydeport’s King George V Docks. Delivering £3 million of investment to support the growing demand for handling huge wind turbine components for the renewable energy sector, Clydeport is keeping Glasgow’s shipbuilding heritage and manufacturing expertise alive, equipping it to meet the modern-day needs of the sector.

Jim McSporran, Port Director at Peel Ports Clydeport, said:

We’re proud to welcome the Maritime Minister to Peel Ports Clydeport today and showcase how our facilities continue to create opportunities for investment, jobs and skills that will benefit the people and businesses of Scotland.

Our recent £3 million investment in road infrastructure at King George V Dock to accommodate growing demand for handling wind turbine components, and our ongoing transformative work at Hunterston PARC in Ayrshire to support the renewables sector, demonstrate our commitment to decarbonising supply chains and enabling the transition to a greener economy.

It’s fantastic to see government and industry working together to back innovation and today’s visit reinforces how Glasgow’s maritime legacy is helping to drive the UK’s clean energy future.

Mike Biddle, Executive Director, Net Zero at Innovate UK, said:

Congratulations to the awarded projects from Round 6 of the Clean Maritime Demonstrator Competition – a great opportunity for UK innovators to take part in a world-renowned maritime transport R&D grant funding programme. Innovate UK looks forward to working with partners to support these projects focused on the ever-more prevalent issue of decarbonisation with emphasis on a range of physical, digital, system and skills-based innovation.

Building on its commitment to clean up shipping and deliver on the UK’s climate ambitions, UK SHORE is also delivering £3.85 million to the Clean Maritime Research Hub. Formed from a consortium of 13 universities across the UK, dedicated to conducting scientific research in clean maritime, the funding will enable the hub to continue its important research, and support the installation of a liquid hydrogen facility at Durham University. The centre will develop the maritime sector’s understanding of the potential impact of liquid hydrogen – which is emission free – in the clean maritime transition.

Maritime media enquiries

Media enquiries 0300 7777 878

Switchboard 0300 330 3000

Published 24 July 2025

MIL OSI United Kingdom –

July 24, 2025

MIL-OSI Australia: Woman charged with arson in relation to fire which destroyed unit at Ravenswood

Source: New South Wales Community and Justice

Woman charged with arson in relation to fire which destroyed unit at Ravenswood

Thursday, 24 July 2025 – 8:48 am.

Police have charged a 61-year-old woman from Ravenswood with arson in relation to a fire at Ravenswood yesterday.
Around 10.30am, emergency services responded to reports of a unit on fire on Warring Street.
Tasmania Fire Service extinguished the fire; however the unit was destroyed.
Fire Investigators determined the fire was deliberately lit.
The woman was bailed to appear before the Launceston Magistrates Court on 3 September 2025.

MIL OSI News –

July 24, 2025

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

Source: GlobeNewswire (MIL-OSI)

RANCHO CORDOVA, Calif., July 23, 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 $14.5 million for the three months ended June 30, 2025, as compared to $13.1 million for the three months ended March 31, 2025 and $10.8 million for the three months ended June 30, 2024.

Second Quarter Highlights

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

		Three months ended
(in thousands, except per share and share data)		June 30, 2025			March 31, 2025			June 30, 2024
Return on average assets (“ROAA”)		1.37	%		1.30	%		1.23	%
Return on average equity (“ROAE”)		14.17	%		13.28	%		11.72	%
Pre-tax income	$	20,099		$	18,391		$	15,152
Pre-tax, pre-provision income⁽¹⁾	$	22,599		$	20,291		$	17,152
Net income	$	14,508		$	13,111		$	10,782
Basic earnings per common share	$	0.68		$	0.62		$	0.51
Diluted earnings per common share	$	0.68		$	0.62		$	0.51
Weighted average basic common shares outstanding		21,225,831			21,209,881			21,039,798
Weighted average diluted common shares outstanding		21,269,265			21,253,588			21,058,085
Shares outstanding at end of period		21,360,991			21,329,235			21,319,583

⁽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:

“We are very pleased to report an exceptional quarter where the continuation of our organic growth strategy fueled new account openings and resulted in growth in loans and deposits. Total loans held for investment increased by $136.2 million, or 3.76% (15.04% when annualized), and total deposits increased by $158.3 million, or 4.24% (16.94% when annualized). Net interest margin increased by eight basis points to 3.53%, while our efficiency ratio decreased to 41.03% compared to 42.58% for the first quarter of 2025. Short-term borrowings remained at zero as of June 30, 2025 and December 31, 2024. This quarter, we declared another dividend to shareholders, which exemplifies our commitment to shareholder value.

This success serves as a strong testimony to our people, technology, operating efficiencies, conservative underwriting practices, exceptional credit quality, and prudent approach to portfolio management, which we believe will continue to benefit our clients, employees, community, and shareholders. It is also attributable to our relationship-based banking approach, where clients receive high-tech and high-touch concierge business banking services.

We look forward to bringing these services to the Walnut Creek market, where we expect to open an office in the third quarter of 2025. Since our expansion in the San Francisco Bay Area began in June 2023, the team has grown to 34 employees with $456.9 million in deposits as of June 30, 2025. We also look forward to the continued growth of business verticals, including Food, Agribusiness, and Diversified Industries where we believe clients will benefit from our global trade services and exceptional treasury management tools.

As we look to the second half of 2025, we are humbled and proud of our team’s accomplishments. We also thank our employees for their outstanding commitment to ensuring Five Star Bank remains a safe, trusted, and steadfast banking partner.”

Financial highlights as of and during the three months ended June 30, 2025 included the following:

The San Francisco Bay Area team increased from 31 to 34 employees and generated deposit balances totaling $456.9 million at June 30, 2025, an increase of $77.2 million from March 31, 2025.
The Company hired five new Business Development Officers, increasing from 35 at March 31, 2025 to 40 at June 30, 2025.
Cash and cash equivalents were $483.8 million, representing 12.42% of total deposits at June 30, 2025, as compared to 12.11% at March 31, 2025.
Total deposits increased by $158.3 million, or 4.24%, during the three months ended June 30, 2025, due to increases in non-wholesale deposits that exceeded decreases in wholesale deposits, which the Company defines as brokered deposits and California Time Deposit Program deposits. During the three months ended June 30, 2025, non-wholesale deposits increased by $191.6 million, or 6.29%, and wholesale deposits decreased by $33.4 million, or 4.84%.
The Company had no short-term borrowings at June 30, 2025 or March 31, 2025.
Consistent, disciplined management of expenses contributed to our efficiency ratio of 41.03% for the three months ended June 30, 2025, as compared to 42.58% for the three months ended March 31, 2025 and 44.07% for the three months ended June 30, 2024.
For the three months ended June 30, 2025, net interest margin was 3.53%, as compared to 3.45% for the three months ended March 31, 2025 and 3.39% for the three months ended June 30, 2024. The effective Federal Funds rate was 4.33% as of June 30, 2025, remaining constant from March 31, 2025 and decreasing from 5.33% at June 30, 2024.
Other comprehensive loss was $0.3 million during the three months ended June 30, 2025. Unrealized losses, net of tax effect, on available-for-sale securities were $12.0 million as of June 30, 2025. Total carrying value of held-to-maturity and available-for-sale securities represented 0.06% and 2.22% of total interest-earning assets, respectively, as of June 30, 2025.
The Company’s common equity Tier 1 capital ratio was 10.85% and 11.00% as of June 30, 2025 and March 31, 2025, 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 June 30, 2025 was as follows:

(in thousands)	June 30, 2025		March 31, 2025		$ Change		% Change
Loans held for investment	$	3,758,025	$	3,621,819	$	136,206		3.76	%
Non-interest-bearing deposits		1,004,061		933,652		70,409		7.54	%
Interest-bearing deposits		2,890,561		2,802,702		87,859		3.13	%

(in thousands)	June 30, 2025		June 30, 2024		$ Change		% Change
Loans held for investment	$	3,758,025	$	3,266,291	$	491,734		15.05	%
Non-interest-bearing deposits		1,004,061		825,733		178,328		21.60	%
Interest-bearing deposits		2,890,561		2,323,898		566,663		24.38	%

The ratio of nonperforming loans to loans held for investment at period end increased from 0.05% at March 31, 2025 to 0.06% at June 30, 2025. The increase was due to one commercial real estate loan being put on nonaccrual status during the quarter.
The Company’s Board of Directors declared on April 17, 2025, and the Company subsequently paid, a cash dividend of $0.20 per share during the three months ended June 30, 2025. The Company’s Board of Directors subsequently declared another cash dividend of $0.20 per share on July 17, 2025, which the Company expects to pay on August 11, 2025 to shareholders of record as of August 4, 2025.

Summary Results

Three months ended June 30, 2025, as compared to three months ended March 31, 2025

The Company’s net income was $14.5 million for the three months ended June 30, 2025, as compared to $13.1 million for the three months ended March 31, 2025. Net interest income increased by $2.5 million during the three months ended June 30, 2025, as compared to the three months ended March 31, 2025, primarily due to an increase in interest income driven by loan growth and an improvement in the average yield on loans, partially offset by an increase in interest expense driven by deposit growth. The provision for credit losses increased by $0.6 million, with loan growth and increases in net charge-offs during the three months ended June 30, 2025 as the leading drivers. Non-interest income increased by $0.5 million, primarily due to an overall improvement in the estimated earnings related to investments in venture-backed funds during the three months ended June 30, 2025, as compared to the three months ended March 31, 2025. Non-interest expense increased by $0.7 million during the three months ended June 30, 2025, as compared to the three months ended March 31, 2025, primarily related to increases in business travel, conferences, training, and advertising and promotional expenses associated with expansion of the Bank’s business development teams, partially offset by an increase in deferred loan origination costs.

Three months ended June 30, 2025, as compared to three months ended June 30, 2024

The Company’s net income was $14.5 million for the three months ended June 30, 2025, as compared to $10.8 million for the three months ended June 30, 2024. Net interest income increased by $7.4 million during the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, primarily due to an increase in interest income driven by loan growth and an improvement in the average yield on loans, partially offset by an increase in interest expense driven by deposit growth. The provision for credit losses increased by $0.5 million, with increases in net charge-offs during the three months ended June 30, 2025 as the leading driver. Non-interest income increased by $0.2 million, primarily due to an overall improvement in the estimated earnings related to investments in venture-backed funds, partially offset by a decrease in the volume of loans sold during the three months ended June 30, 2025, as compared to the three months ended June 30, 2024. Non-interest expense increased by $2.2 million during the three months ended June 30, 2025, as compared to the three months ended June 30, 2024, with an increase in salaries and employee benefits related to increased headcount as the leading driver.

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

	Three months ended
(in thousands, except per share data)	June 30, 2025			March 31, 2025			$ Change		% Change
Selected operating data:
Net interest income	$	36,515		$	33,977		$	2,538		7.47	%
Provision for credit losses		2,500			1,900			600		31.58	%
Non-interest income		1,810			1,359			451		33.19	%
Non-interest expense		15,726			15,045			681		4.53	%
Pre-tax income		20,099			18,391			1,708		9.29	%
Provision for income taxes		5,591			5,280			311		5.89	%
Net income	$	14,508		$	13,111		$	1,397		10.66	%
Earnings per common share:
Basic	$	0.68		$	0.62		$	0.06		9.68	%
Diluted	$	0.68		$	0.62		$	0.06		9.68	%
Performance and other financial ratios:
ROAA		1.37	%		1.30	%
ROAE		14.17	%		13.28	%
Net interest margin		3.53	%		3.45	%
Cost of funds		2.53	%		2.56	%
Efficiency ratio		41.03	%		42.58	%

	Three months ended
(in thousands, except per share data)	June 30, 2025			June 30, 2024				$ Change	% Change
Selected operating data:
Net interest income	$	36,515		$	29,092		$	7,423		25.52	%
Provision for credit losses		2,500			2,000			500		25.00	%
Non-interest income		1,810			1,573			237		15.07	%
Non-interest expense		15,726			13,513			2,213		16.38	%
Pre-tax income		20,099			15,152			4,947		32.65	%
Provision for income taxes		5,591			4,370			1,221		27.94	%
Net income	$	14,508		$	10,782		$	3,726		34.56	%
Earnings per common share:
Basic	$	0.68		$	0.51		$	0.17		33.33	%
Diluted	$	0.68		$	0.51		$	0.17		33.33	%
Performance and other financial ratios:
ROAA		1.37	%		1.23	%
ROAE		14.17	%		11.72	%
Net interest margin		3.53	%		3.39	%
Cost of funds		2.53	%		2.56	%
Efficiency ratio		41.03	%		44.07	%

Balance Sheet Summary

(in thousands)	June 30, 2025		March 31, 2025		$ Change			% Change
Selected financial condition data:
Total assets	$	4,413,473	$	4,245,057	$	168,416			3.97	%
Cash and cash equivalents		483,810		452,571		31,239			6.90	%
Total loans held for investment		3,758,025		3,621,819		136,206			3.76	%
Total investments		97,575		99,696		(2,121	)		(2.13	)%
Total liabilities		3,996,731		3,838,606		158,125			4.12	%
Total deposits		3,894,622		3,736,354		158,268			4.24	%
Subordinated notes, net		73,968		73,932		36			0.05	%
Total shareholders’ equity		416,742		406,451		10,291			2.53	%

Insured and collateralized deposits were approximately $2.6 billion, representing 67.06% of total deposits as of June 30, 2025, as compared to 67.55% as of March 31, 2025. Net uninsured and uncollateralized deposits were approximately $1.3 billion as of June 30, 2025, increasing from $1.2 billion at March 31, 2025.
Non-wholesale deposit accounts constituted 83.14% of total deposits as of June 30, 2025, as compared to 81.53% at March 31, 2025. Deposit relationships of greater than $5 million represented 59.91% of total deposits, as compared to 60.87% as of March 31, 2025, and had an average age of approximately 8.34 years as of June 30, 2025, as compared to 8.80 years as of March 31, 2025.
Total deposits as of June 30, 2025 were $3.9 billion, an increase of $158.3 million, or 4.24%, from March 31, 2025 comprised of increases in both interest-bearing and non-interest-bearing deposits. The primary driver of interest-bearing deposit growth was new money market deposit accounts opened during the quarter, adding $87.4 million in new balances. Non-interest-bearing deposit growth was driven by new accounts opened during the quarter, adding $68.7 million in new balances.
Cash and cash equivalents as of June 30, 2025 were $483.8 million, representing 12.42% of total deposits at June 30, 2025, as compared to 12.11% as of March 31, 2025.
Total liquidity (consisting of cash and cash equivalents and unused and immediately available borrowing capacity as set forth below) was approximately $2.2 billion as of June 30, 2025, as compared to $2.0 billion at March 31, 2025.

	June 30, 2025
(in thousands)	Line of Credit		Letters of Credit Issued		Borrowings		Available
Federal Home Loan Bank of San Francisco (“FHLB”) advances	$	1,290,446	$	732,500	$	—	$	557,946
Federal Reserve Discount Window		926,573		—		—		926,573
Correspondent bank lines of credit		185,000		—		—		185,000
Cash and cash equivalents		—		—		—		483,810
Total	$	2,402,019	$	732,500	$	—	$	2,153,329


(in thousands)	June 30, 2025		December 31, 2024		$ Change			% Change
Selected financial condition data:
Total assets	$	4,413,473	$	4,053,278	$	360,195			8.89	%
Cash and cash equivalents		483,810		352,343		131,467			37.31	%
Total loans held for investment		3,758,025		3,532,686		225,339			6.38	%
Total investments		97,575		100,914		(3,339	)		(3.31	)%
Total liabilities		3,996,731		3,656,654		340,077			9.30	%
Total deposits		3,894,622		3,557,994		336,628			9.46	%
Subordinated notes, net		73,968		73,895		73			0.10	%
Total shareholders’ equity		416,742		396,624		20,118			5.07	%

The increase in total assets from December 31, 2024 to June 30, 2025 was primarily comprised of a $225.3 million increase in total loans held for investment and a $131.5 million increase in cash and cash equivalents. The $225.3 million increase in total loans held for investment between December 31, 2024 and June 30, 2025 was a result of $578.8 million in loan originations and advances, partially offset by $130.3 million and $223.1 million in loan payoffs and paydowns, respectively. The $225.3 million increase in total loans held for investment included $43.9 million in purchases of loans within the consumer concentration of the loan portfolio. The $131.5 million increase in cash and cash equivalents primarily resulted from net cash inflows related to financing and operating activities of $328.1 million and $28.1 million, respectively, partially offset by net cash outflows related to investing activities of $224.7 million.

The increase in total liabilities from December 31, 2024 to June 30, 2025 was primarily due to an increase in interest-bearing deposits of $255.2 million. The increase in interest-bearing deposits was largely due to increases in money market and time deposits of $179.4 million and $101.9 million, respectively.

The increase in total shareholders’ equity from December 31, 2024 to June 30, 2025 was primarily a result of net income recognized of $27.6 million and a $0.4 million increase in accumulated other comprehensive income, partially offset by $8.5 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)	June 30, 2025			March 31, 2025			$ Change		% Change
Interest and fee income	$	60,580		$	57,087		$	3,493		6.12	%
Interest expense		24,065			23,110			955		4.13	%
Net interest income	$	36,515		$	33,977		$	2,538		7.47	%
Net interest margin		3.53	%		3.45	%

	Three months ended
(in thousands)	June 30, 2025			June 30, 2024			$ Change		% Change
Interest and fee income	$	60,580		$	48,998		$	11,582		23.64	%
Interest expense		24,065			19,906			4,159		20.89	%
Net interest income	$	36,515		$	29,092		$	7,423		25.52	%
Net interest margin		3.53	%		3.39	%

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

	Three months ended
	June 30, 2025							March 31, 2025							June 30, 2024
(in thousands)	Average Balance		Interest Income/ Expense		Yield/ Rate			Average Balance		Interest Income/ Expense		Yield/ Rate			Average Balance		Interest Income/ Expense		Yield/ Rate
Assets
Interest-earning deposits in banks	$	361,866	$	3,987		4.42	%	$	328,571	$	3,575		4.41	%	$	148,936	$	1,986		5.36	%
Investment securities		97,886		577		2.37	%		100,474		581		2.34	%		105,819		650		2.47	%
Loans held for investment and sale		3,691,616		56,016		6.09	%		3,567,992		52,931		6.02	%		3,197,921		46,362		5.83	%
Total interest-earning assets		4,151,368		60,580		5.85	%		3,997,037		57,087		5.79	%		3,452,676		48,998		5.71	%
Interest receivable and other assets, net		101,632							93,543							84,554
Total assets	$	4,253,000						$	4,090,580						$	3,537,230

Liabilities and shareholders’ equity
Interest-bearing transaction accounts	$	283,369	$	1,043		1.48	%	$	303,822	$	1,112		1.48	%	$	291,470	$	1,104		1.52	%
Savings accounts		121,692		801		2.64	%		123,599		772		2.53	%		120,080		856		2.87	%
Money market accounts		1,647,628		13,270		3.23	%		1,540,879		12,435		3.27	%		1,547,814		13,388		3.48	%
Time accounts		726,295		7,790		4.30	%		706,528		7,629		4.38	%		272,887		3,369		4.96	%
Subordinated notes and other borrowings		73,967		1,161		6.30	%		73,908		1,162		6.37	%		75,747		1,189		6.31	%
Total interest-bearing liabilities		2,852,951		24,065		3.38	%		2,748,736		23,110		3.41	%		2,307,998		19,906		3.47	%
Demand accounts		957,034							910,954							817,668
Interest payable and other liabilities		32,406							30,389							41,429
Shareholders’ equity		410,609							400,501							370,135
Total liabilities & shareholders’ equity	$	4,253,000						$	4,090,580						$	3,537,230

Net interest spread						2.47	%						2.38	%						2.24	%
Net interest income/margin			$	36,515		3.53	%			$	33,977		3.45	%			$	29,092		3.39	%

Net interest income during the three months ended June 30, 2025 increased $2.5 million, or 7.47%, to $36.5 million compared to $34.0 million during the three months ended March 31, 2025. Net interest margin totaled 3.53% for the three months ended June 30, 2025, an increase of eight basis points compared to the prior quarter. The increase in net interest income is primarily attributable to an additional $3.5 million in interest income, mainly due to a $123.6 million, or 3.46%, increase in the average balance of loans and a seven basis point improvement in the average yield on loans during the three months ended June 30, 2025 compared to the prior quarter. The increase in interest income was partially offset by an additional $1.0 million in interest expense, which was mainly driven by a $150.2 million, or 4.19%, increase in the average balance of deposits at an average rate of two basis points lower than the prior quarter.

As compared to the three months ended June 30, 2024, net interest income increased $7.4 million, or 25.52%, to $36.5 million from $29.1 million. Net interest margin totaled 3.53% for the three months ended June 30, 2025, an increase of 14 basis points compared to the same quarter of the prior year. The increase in net interest income is primarily attributable to an additional $11.6 million in interest income, mainly due to a $493.7 million, or 15.44%, increase in the average balance of loans and a 26 basis point improvement in the average yield on loans during the three months ended June 30, 2025 compared to the same quarter of the prior year. The increase in interest income was partially offset by an additional $4.2 million in interest expense compared to the same quarter of the prior year. The increase in interest expense is mainly attributable to a $686.1 million, or 22.50%, increase in the average balance of deposits at an average rate of one basis point lower during the three months ended June 30, 2025 compared to the same quarter of the prior year.

Loans by Type

The following table provides loan balances, excluding deferred loan fees, by type as of the dates shown:

(in thousands)	June 30, 2025			March 31, 2025
Real estate:
Commercial	$	3,066,627		$	2,941,201
Commercial land and development		1,422			3,556
Commercial construction		112,399			113,002
Residential construction		5,479			5,747
Residential		33,132			34,053
Farmland		51,579			43,643
Commercial:
Secured		173,855			170,525
Unsecured		37,568			34,970
Consumer and other		278,215			277,093
Net deferred loan fees		(2,251	)		(1,971	)
Total loans held for investment	$	3,758,025		$	3,621,819

Interest-bearing Deposits

The following table provides interest-bearing deposit balances by type as of the dates shown:

(in thousands)	June 30, 2025		March 31, 2025
Interest-bearing transaction accounts	$	292,257	$	295,633
Money market accounts		1,704,652		1,577,473
Savings accounts		121,567		128,210
Time accounts		772,085		801,386
Total interest-bearing deposits	$	2,890,561	$	2,802,702

Asset Quality

Allowance for Credit Losses

At June 30, 2025, the Company’s allowance for credit losses was $40.2 million, as compared to $37.8 million at December 31, 2024. The $2.4 million increase in the allowance is due to a $4.6 million provision for credit losses recorded during the six months ended June 30, 2025, partially offset by net charge-offs of $2.2 million, primarily attributable to commercial and industrial loans, during the same period.

The Company’s ratio of nonperforming loans to loans held for investment increased from 0.05% at December 31, 2024 to 0.06% at June 30, 2025. Loans designated as watch decreased from $123.4 million to $106.5 million between December 31, 2024 and June 30, 2025. Loans designated as substandard increased from $2.6 million to $4.2 million between December 31, 2024 and June 30, 2025. There were no loans with doubtful risk grades at June 30, 2025 or December 31, 2024.

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

	June 30, 2025					December 31, 2024
(in thousands)	Amount		% of Total			Amount		% of Total
Real estate:
Commercial	$	27,792		69.19	%	$	25,864		68.44	%
Commercial land and development		33		0.08	%		78		0.21	%
Commercial construction		2,575		6.41	%		2,268		6.00	%
Residential construction		75		0.19	%		64		0.17	%
Residential		334		0.83	%		270		0.71	%
Farmland		723		1.80	%		607		1.61	%
		31,532		78.50	%		29,151		77.14	%
Commercial:
Secured		5,623		14.00	%		5,866		15.52	%
Unsecured		417		1.04	%		278		0.74	%
		6,040		15.04	%		6,144		16.26	%
Consumer and other		2,595		6.46	%		2,496		6.60	%
Total allowance for credit losses	$	40,167		100.00	%	$	37,791		100.00	%

The ratio of allowance for credit losses to loans held for investment remained at 1.07% at June 30, 2025 and December 31, 2024.

Non-interest Income

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

	Three months ended
(in thousands)	June 30, 2025		March 31, 2025		$ Change			% Change
Service charges on deposit accounts	$	196	$	215	$	(19	)		(8.84	)%
Gain on sale of loans		119		125		(6	)		(4.80	)%
Loan-related fees		468		448		20			4.46	%
FHLB stock dividends		325		331		(6	)		(1.81	)%
Earnings on bank-owned life insurance		220		161		59			36.65	%
Other income		482		79		403			510.13	%
Total non-interest income	$	1,810	$	1,359	$	451			33.19	%

Other income. The increase resulted primarily from an overall improvement in the estimated earnings related to investments in venture-backed funds during the three months ended June 30, 2025 compared to the three months ended March 31, 2025.

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

	Three months ended
(in thousands)	June 30, 2025		June 30, 2024		$ Change			% Change
Service charges on deposit accounts	$	196	$	189	$	7			3.70	%
Gain on sale of loans		119		449		(330	)		(73.50	)%
Loan-related fees		468		370		98			26.49	%
FHLB stock dividends		325		329		(4	)		(1.22	)%
Earnings on bank-owned life insurance		220		158		62			39.24	%
Other income		482		78		404			517.95	%
Total non-interest income	$	1,810	$	1,573	$	237			15.07	%

Gain on sale of loans. The decrease related primarily to an overall decline in the volume of loans sold, partially offset by an improvement in the effective yield of loans sold. During the three months ended June 30, 2025, approximately $1.6 million of loans were sold with an effective yield of 7.60%, as compared to approximately $6.8 million of loans sold with an effective yield of 6.60% during the three months ended June 30, 2024.

Other income. The increase related primarily to an overall improvement in the estimated earnings related to investments in venture-backed funds during the three months ended June 30, 2025 compared to the three months ended June 30, 2024.

Non-interest Expense

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

	Three months ended
(in thousands)	June 30, 2025		March 31, 2025		$ Change			% Change
Salaries and employee benefits	$	8,910	$	9,134	$	(224	)		(2.45	)%
Occupancy and equipment		657		637		20			3.14	%
Data processing and software		1,508		1,457		51			3.50	%
Federal Deposit Insurance Corporation (“FDIC”) insurance		470		455		15			3.30	%
Professional services		918		913		5			0.55	%
Advertising and promotional		865		522		343			65.71	%
Loan-related expenses		423		319		104			32.60	%
Other operating expenses		1,975		1,608		367			22.82	%
Total non-interest expense	$	15,726	$	15,045	$	681			4.53	%

Salaries and employee benefits. The decrease related primarily to: (i) a $0.6 million increase in deferred loan origination costs due to greater loan originations, net of purchased consumer loans; and (ii) $0.1 million decrease in salaries, benefits, and bonus expense. The decrease was partially offset by a $0.5 million increase in commissions expense due to greater loan originations, net of purchased consumer loans, period-over-period.

Advertising and promotional. The increase related primarily to additional expenses incurred to support the expansion of the Bank’s business development teams, including a $0.1 million increase related to business development expenses, a $0.1 million increase in expenses related to sponsored events and partnerships, and a $0.1 million increase in expenses related to donations.

Loan-related expenses. The increase related primarily to a $0.1 million increase in expenses related to inspections to support the increase in loan originations and annual loan reviews.

Other operating expenses. The increase was primarily due to a $0.2 million increase in business travel expenses and a $0.1 million increase in expenses related to conferences and trainings attended.

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

	Three months ended
(in thousands)	June 30, 2025		June 30, 2024		$ Change		% Change
Salaries and employee benefits	$	8,910	$	7,803	$	1,107		14.19	%
Occupancy and equipment		657		646		11		1.70	%
Data processing and software		1,508		1,235		273		22.11	%
FDIC insurance		470		390		80		20.51	%
Professional services		918		767		151		19.69	%
Advertising and promotional		865		615		250		40.65	%
Loan-related expenses		423		297		126		42.42	%
Other operating expenses		1,975		1,760		215		12.22	%
Total non-interest expense	$	15,726	$	13,513	$	2,213		16.38	%

Salaries and employee benefits. The increase related primarily to: (i) a $1.2 million increase in salaries, benefits, and bonus expense, mainly related to a 16.58% increase in headcount between June 30, 2024 and June 30, 2025; and (ii) a $0.1 million increase in commissions paid. This increase was partially offset by a $0.2 million increase in deferred loan origination costs due to a greater number of loan originations, net of purchased consumer loans, period-over-period.

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

Professional services. The increase was primarily due to a $0.1 million increase in fees paid for compensation and business development consulting services.

Advertising and promotional. The increase related primarily to additional expenses incurred to support the expansion of the Bank’s business development teams, including a $0.1 million increase in expenses related to sponsored events and partnerships and a $0.1 million increase related to business development expenses.

Loan-related expenses. The increase related primarily to a $0.1 million increase in expenses related to inspections to support the increase in loan originations and annual loan reviews.

Other operating expenses. The increase was primarily due to a $0.1 million increase in travel expense and a $0.1 million increase in expenses related to conferences, trainings, and professional association memberships.

Provision for Income Taxes

On July 4, 2025, the President signed H.R. 1, the “One Big Beautiful Bill Act,” into law. The legislation includes several changes to federal tax law that generally allow for more favorable deductibility of certain business expenses beginning in 2025, including the restoration of immediate expensing of domestic R&D expenditures, reinstatement of 100% bonus depreciation, and more favorable rules for determining the limitation on business interest expense. The Act also made certain changes to the deductibility of the cost of meals and charitable contributions that are effective for tax years beginning after Dec. 31, 2025. These changes were not reflected in the income tax provision for the period ended June 30, 2025, as enactment occurred after the balance sheet date. The Company is currently evaluating the impact on future periods.

Three months ended June 30, 2025, as compared to three months ended March 31, 2025

Provision for income taxes increased to $5.6 million for the three months ended June 30, 2025 from $5.3 million for the three months ended March 31, 2025, which was primarily due to an increase in taxable income recognized during the three months ended June 30, 2025. This increase was partially offset by a net $0.2 million reduction to the provision recorded during the three months ended June 30, 2025. This adjustment related to a tax law change for the state of California effective as of June 30, 2025, which requires a transition from a three-factor apportionment formula to a single-sales-factor formula for determining state income tax. As such, the Company recorded a net benefit of approximately $0.9 million relating to the current year provision, which was partially offset by a $0.7 million expense relating to the remeasuring of the deferred tax assets and liabilities as of June 30, 2025. The effective tax rates were 27.82% and 28.71% for the three months ended June 30, 2025 and March 31, 2025, respectively.

Three months ended June 30, 2025, as compared to three months ended June 30, 2024

Provision for income taxes increased by $1.2 million, or 27.94%, for the three months ended June 30, 2025 compared to the three months ended June 30, 2024. This increase was primarily driven by an increase in taxable income. This increase was partially offset by a net $0.2 million reduction to the provision recorded during the three months ended June 30, 2025. This adjustment related to a tax law change for the state of California effective as of June 30, 2025, which requires a transition from a three-factor apportionment formula to a single-sales-factor formula for determining state income tax. As such, the Company recorded a net benefit of approximately $0.9 million relating to the current year provision, which was partially offset by a $0.7 million expense relating to the remeasuring of the deferred tax assets and liabilities as of June 30, 2025. The effective tax rates were 27.82% and 28.84% for the three months ended June 30, 2025 and June 30, 2024, respectively.

Webcast Details

Five Star Bancorp will host a live webcast for analysts and investors on Thursday, July 24, 2025 at 1:00 PM ET (10:00 AM PT) to discuss its second quarter financial results. To view the live webcast, visit the “News & Events” section of the Company’s website under “Events” at https://investors.fivestarbank.com/news-events/events. The webcast will be archived on the Company’s website for a period of 90 days.

About Five Star Bancorp

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

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company’s beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. The Company cautions that the forward-looking statements are based largely on the Company’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company’s control) and are subject to risks and uncertainties, which change over time, and other factors, which could cause actual results to differ materially from those currently anticipated. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. If one or more of the factors affecting the Company’s forward-looking information and statements proves incorrect, then the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, the Company cautions you not to place undue reliance on the Company’s forward-looking information and statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 and Quarterly Report on Form 10-Q for the three months ended March 31, 2025, 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)	June 30, 2025			March 31, 2025			June 30, 2024
Revenue and Expense Data
Interest and fee income	$	60,580		$	57,087		$	48,998
Interest expense		24,065			23,110			19,906
Net interest income		36,515			33,977			29,092
Provision for credit losses		2,500			1,900			2,000
Net interest income after provision		34,015			32,077			27,092
Non-interest income:
Service charges on deposit accounts		196			215			189
Gain on sale of loans		119			125			449
Loan-related fees		468			448			370
FHLB stock dividends		325			331			329
Earnings on bank-owned life insurance		220			161			158
Other income		482			79			78
Total non-interest income		1,810			1,359			1,573
Non-interest expense:
Salaries and employee benefits		8,910			9,134			7,803
Occupancy and equipment		657			637			646
Data processing and software		1,508			1,457			1,235
FDIC insurance		470			455			390
Professional services		918			913			767
Advertising and promotional		865			522			615
Loan-related expenses		423			319			297
Other operating expenses		1,975			1,608			1,760
Total non-interest expense		15,726			15,045			13,513
Income before provision for income taxes		20,099			18,391			15,152
Provision for income taxes		5,591			5,280			4,370
Net income	$	14,508		$	13,111		$	10,782

Comprehensive Income
Net income	$	14,508		$	13,111		$	10,782
Net unrealized holding gain on securities available-for-sale during the period		190			1,030			295
Less: Income tax expense related to other comprehensive (loss) income		502			305			87
Other comprehensive (loss) income		(312	)		725			208
Total comprehensive income	$	14,196		$	13,836		$	10,990

Share and Per Share Data
Earnings per common share:
Basic	$	0.68		$	0.62		$	0.51
Diluted	$	0.68		$	0.62		$	0.51
Book value per share	$	19.51		$	19.06		$	17.85
Tangible book value per share⁽¹⁾	$	19.51		$	19.06		$	17.85
Weighted average basic common shares outstanding		21,225,831			21,209,881			21,039,798
Weighted average diluted common shares outstanding		21,269,265			21,253,588			21,058,085
Shares outstanding at end of period		21,360,991			21,329,235			21,319,583

Selected Financial Ratios
ROAA		1.37	%		1.30	%		1.23	%
ROAE		14.17	%		13.28	%		11.72	%
Net interest margin		3.53	%		3.45	%		3.39	%
Loan to deposit⁽²⁾		96.50	%		97.01	%		103.87	%

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

(in thousands)	June 30, 2025			March 31, 2025			June 30, 2024
Balance Sheet Data
Cash and due from financial institutions	$	53,724		$	42,473		$	28,572
Interest-bearing deposits in banks		430,086			410,098			161,787
Time deposits in banks		849			4,024			4,097
Securities – available-for-sale, at fair value		94,990			97,111			103,204
Securities – held-to-maturity, at amortized cost		2,585			2,585			2,973
Loans held for sale		309			2,669			5,322
Loans held for investment		3,758,025			3,621,819			3,266,291
Allowance for credit losses		(40,167	)		(39,224	)		(35,406	)
Loans held for investment, net of allowance for credit losses		3,717,858			3,582,595			3,230,885
FHLB stock		15,000			15,000			15,000
Operating leases, right-of-use asset		7,094			5,944			6,630
Premises and equipment, net		1,606			1,524			1,610
Bank-owned life insurance		23,466			23,246			19,030
Interest receivable and other assets		65,906			57,788			55,107
Total assets	$	4,413,473		$	4,245,057		$	3,634,217

Non-interest-bearing deposits	$	1,004,061		$	933,652		$	825,733
Interest-bearing deposits		2,890,561			2,802,702			2,323,898
Total deposits		3,894,622			3,736,354			3,149,631
Subordinated notes, net		73,968			73,932			73,822
Other borrowings		—			—			—
Operating lease liability		7,744			6,591			7,077
Interest payable and other liabilities		20,397			21,729			23,217
Total liabilities		3,996,731			3,838,606			3,253,747

Common stock		303,155			302,788			301,968
Retained earnings		125,545			115,309			90,734
Accumulated other comprehensive loss, net of taxes		(11,958	)		(11,646	)		(12,232	)
Total shareholders’ equity		416,742			406,451			380,470
Total liabilities and shareholders’ equity	$	4,413,473		$	4,245,057		$	3,634,217

Quarterly Average Balance Data
Average loans held for investment and sale	$	3,691,616		$	3,567,992		$	3,197,921
Average interest-earning assets		4,151,368			3,997,037			3,452,676
Average total assets		4,253,000			4,090,580			3,537,230
Average deposits		3,736,018			3,585,782			3,049,919
Average total equity		410,609			400,501			370,135

Credit Quality
Allowance for credit losses to nonperforming loans		1,763.26	%		2,222.32	%		1,882.30	%
Nonperforming loans to loans held for investment		0.06	%		0.05	%		0.06	%
Nonperforming assets to total assets		0.05	%		0.04	%		0.05	%
Nonperforming loans plus performing loan modifications to loans held for investment		0.06	%		0.05	%		0.06	%

Capital Ratios
Total shareholders’ equity to total assets		9.44	%		9.57	%		10.47	%
Tangible shareholders’ equity to tangible assets⁽¹⁾		9.44	%		9.57	%		10.47	%
Total capital (to risk-weighted assets)		13.72	%		13.97	%		14.38	%
Tier 1 capital (to risk-weighted assets)		10.85	%		11.00	%		11.27	%
Common equity Tier 1 capital (to risk-weighted assets)		10.85	%		11.00	%		11.27	%
Tier 1 leverage ratio		10.03	%		10.17	%		11.05	%

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

Non-GAAP Reconciliation (Unaudited)

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

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

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

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

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

	Three months ended
(in thousands)	June 30, 2025		March 31, 2025		June 30, 2024
Pre-tax, pre-provision income
Pre-tax income	$	20,099	$	18,391	$	15,152
Add: provision for credit losses		2,500		1,900		2,000
Pre-tax, pre-provision income	$	22,599	$	20,291	$	17,152

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 –

July 24, 2025

MIL-OSI: Subsea7 and Saipem announce signing of the Merger Agreement

Source: GlobeNewswire (MIL-OSI)

NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES, OR IN ANY OTHER JURISDICTION IN WHICH SUCH DISTRIBUTION WOULD BE PROHIBITED BY APPLICABLE LAW

Transaction structure and terms confirmed in line with Memorandum of Understanding

Creating a global leader in energy services

Milan, Luxembourg, 24 July 2025 – Saipem and Subsea7 announce that they have entered into a binding merger agreement, on terms and conditions in line with what previously communicated at the time of the signing of the Memorandum of Understanding on 23 February 2025. The merger of Saipem and Subsea7 will create a global leader in energy services.

Highlights

The company resulting from the merger¹ between Saipem and Subsea7 (the “Proposed Combination”) will be renamed Saipem7 (“Saipem7”), will have revenue of approx. €21 billion², EBITDA in excess of €2 billion³, will generate more than €800 million of Free Cash Flow⁴ and will have a combined backlog of €43 billion⁵
The highly complementary geographical footprints, competencies and capabilities, vessel fleets and technologies will benefit Saipem7’s global portfolio of clients
The diversification of the geographical footprint of Saipem and Subsea7 is reflected in the combined backlog, with no single country contributing more than 15% of total⁶
On completion, Saipem and Subsea7 shareholders will own 50% each of the share capital of Saipem7
Subsea7 shareholders participating to the Proposed Combination will receive 6.688 new Saipem shares for each Subsea7 share held
Subsea7 will distribute an extraordinary dividend to its shareholders for an amount equal to €450 million immediately prior to completion of the Proposed Combination
Annual synergies expected to be approximately €300 million on a run-rate basis, which will lead to material value creation for the shareholders of Saipem7
Saipem7 will remain incorporated in Italy and headquartered in Milan, and will have its shares listed on both the Milan and Oslo stock exchanges
Siem Industries, reference shareholder of Subsea7, and Eni and CDP Equity, reference shareholders of Saipem, have committed to vote in favour of the Proposed Combination
Completion of the Proposed Combination anticipated to occur in the second half of 2026

The management of both Saipem and Subsea7 confirm the compelling strategic rationale in creating a global leader in energy services, particularly considering the growing size of clients’ projects. The parties believe the Proposed Combination will enhance value for all shareholders and stakeholders, both in the current market and in the long term.

Eni, CDP Equity and Siem Industries fully support the Proposed Combination and have signed a Shareholders’ Agreement confirming the undertaking to vote in favour of the Proposed Combination. As part of this, to ensure a balanced leadership and governance structure, Saipem7’s CEO will be designated by Eni and CDP Equity and Saipem7’s Chairman of the Board of Directors will be designated by Siem Industries.

It is currently envisaged that, upon completion of the Proposed Combination, Mr Kristian Siem will be appointed as Chairman of the Board of Directors of Saipem7⁷ and Mr Alessandro Puliti will be appointed as CEO of Saipem7⁸. In addition, Mr Alessandro Puliti and Mr John Evans will be appointed respectively as the Chairman and CEO of the company that will manage the Offshore Engineering & Construction business of Saipem7. Such company will be named Subsea7, branded as “Subsea7, a Saipem7 Company”, and will comprise all of Subsea7’s businesses and Saipem’s Asset Based Services business (including Offshore Wind).

The by-laws of Saipem7 are expected to provide for loyalty shares (double votes), which will be available, upon request, to all shareholders of Saipem7.

Strategic rationale of the Proposed Combination

The Proposed Combination will be beneficial to the clients of both Saipem and Subsea7, bringing together the respective strengths of both companies:

Global reach and comprehensive solutions for clients: global operations and projects in more than 60 countries and a highly complementary footprint between the two companies. A full spectrum of offshore and onshore services, from drilling, engineering and construction to life-of-field services and decommissioning, with an increased ability to optimise project scheduling for clients in oil, gas, carbon capture and renewable energy
Diversified and complementary fleet: an expanded and diversified fleet of more than 60 construction vessels enhancing Saipem7’s ability to undertake a wide range of projects, from shallow water to ultra-deepwater operations, utilising a full portfolio of heavy lift, high-end J-lay, S-lay and reel-lay rigid pipeline solutions, flexible pipe and umbilical lay services, as well as market-leading wind turbine, foundations and cable lay installation capabilities
World-class expertise and experience: a specialised, global workforce of approximately 44,000 people, including more than 9,000 engineers and project managers contributing to delivering solutions that unlock value for clients
Innovation and technology: the combined expertise to foster innovation in offshore technologies, ensuring cutting-edge solutions for complex projects

The transaction is expected to create significant shareholder value through:

Synergies: annual cost and capital expenditure synergies expected to be approximately €300 million from the third year after completion of the Proposed Combination, driven by fleet optimisation (utilisation and geographical positioning of vessels and equipment), procurement (longer charter periods for leased vessels and improved terms with suppliers), sales and marketing (tendering rationalisation), and process efficiencies
More efficient capital expenditure programme: optimised allocation of capital across a broader, complementary vessel fleet
Attractive shareholder remuneration policy: Saipem7 is expected to distribute annually to its shareholders at least 40% of its Free Cash Flow after repayment of lease liabilities
Enhanced capital structure: a solid balance sheet expected to support an investment grade credit rating
Greater scale in both equity and debt capital markets: access to a wider investor base and to more diversified sources of capital

Transaction structure, ownership and terms

Saipem7 will be created through an EU cross-border statutory merger, carried out by way of absorption of Subsea7 into Saipem, with the latter to be renamed Saipem7
Saipem7 will remain incorporated in Italy and headquartered in Milan, and will have its shares listed on both the Milan and Oslo stock exchanges
Siem Industries (currently the largest shareholder of Subsea7) will own approximately 11.8% of Saipem7’s share capital, while Eni and CDP Equity (currently the largest shareholders of Saipem) will respectively own approximately 10.6% and 6.4% of Saipem7’s share capital
Subsea7 shareholders participating to the Proposed Combination will receive 6.688 new Saipem shares for each Subsea7 share held
Assuming all Subsea7 shareholders participate in the merger, the share capital of Saipem7 will be held 50-50% by the current shareholders of Saipem and Subsea7 on completion
Immediately prior to completion of the Proposed Combination, Subsea7 shareholders will receive an extraordinary cash dividend of €450 million⁹
Shareholders of Subsea7 who vote against the approval of the Proposed Combination at the Subsea7 Extraordinary General Meeting will have the right to dispose of their shares in Subsea7 for an adequate cash compensation under the conditions set out under Luxembourg company law.¹⁰ The formula that will be used to determine the cash compensation will be made available on Subsea7’s website and the amount of the cash compensation determined on the basis of such formula will be announced in advance of Subsea7’s Extraordinary General Meeting

Key activities performed since the execution of the Memorandum of Understanding

Satisfactory confirmatory due diligence completed, and transaction terms finalised in line with those initially agreed at the time of the signing of the Memorandum of Understanding
Annual cost and capital expenditure synergies confirmed and expected to be equal to approximately €300 million from the third year after completion of the Proposed Combination
No material findings in the analysis of Saipem and Subsea7 business plans in terms of projects overlap, thus further underpinning the value creation deriving from the Proposed Combination
Completed the preliminary antitrust analysis with the support of specialised advisors. Currently in the process of submitting the relevant documentation for the consideration of the Proposed Combination to the applicable antitrust authorities
Confirmation of capital allocation framework, including shareholders’ remuneration policy and target of achieving and maintaining investment grade credit rating
Identified the key members of the management team of Saipem7 and Subsea7 following completion of the Proposed Combination
Agreement on the governance principles applicable to Saipem7 and Subsea7 following completion of the Proposed Combination

Organisational structure of Saipem7

Saipem7 will be structured as four businesses: Offshore Engineering & Construction, Onshore Engineering & Construction, Sustainable Infrastructures and Drilling Offshore
The Offshore Engineering & Construction business will be contained within an operationally autonomous company, fully owned by Saipem7, named Subsea7, branded as “Subsea7, a Saipem7 Company”, and will comprise all Subsea7’s businesses and the Asset Based Services business of Saipem (including Offshore Wind). The company will represent approximately 84% of the combined group’s EBITDA for the last 12 months as of 31 December 2024
Subsea7 shall be incorporated in the UK and headquartered in London. After completion of the Proposed Combination, Subsea7 will be governed by a Board of Directors comprising seven members, including Mr Alessandro Puliti as Chairman, Mr John Evans as CEO, Mr Kristian Siem and other four independent directors

Pre-completion distributions to shareholders

Each of Saipem and Subsea7 will distribute cash dividends of $350 million during the course of 2025, such dividends having already been approved by their respective shareholders’ meetings in May 2025 and having already been partially distributed
If the Proposed Combination is not completed before the approval of the full year 2025 results of Saipem and Subsea7 (expected in the second quarter of 2026 for both Saipem and Subsea7), each of Saipem and Subsea7 will (subject to their respective 2025 results meeting certain agreed financial targets) be entitled to distribute cash dividends to their respective shareholders of at least $300 million¹¹^,12^{, 13}, to be paid in Q2 2026
In connection with a permitted business divestment currently ongoing, Subsea7 will also distribute a cash dividend equal to €105 million¹⁴ to its shareholders prior to completion of the Proposed Combination

Shareholders’ Agreement

The Shareholders’ Agreement signed between Siem Industries, Eni and CDP Equity provides for, inter alia, an irrevocable undertaking to vote in favour of the Proposed Combination (subject to receipt of the required Italian government approval), a three-year shareholder lock-up and the submission of a joint slate for the appointment of the majority of the members of the board of directors of Saipem7.

Timing, conditions precedent, approvals and other matters

Completion of the Proposed Combination will be subject to customary conditions precedent for a transaction of this nature, including, inter alia, the approval of antitrust, other public and regulatory authorities’ (e.g. the required Italian Government approval), as well as approval by the shareholders of both Saipem and Subsea7 at their respective Extraordinary General Meetings. In the case of Saipem this will be subject to reaching also the so-called “whitewash majorities” for purposes of the mandatory takeover bid exemption¹⁵. Both Saipem’s and Subsea7’s Extraordinary General Meetings will take place on 25 September 2025.

Completion is currently anticipated to occur in the second half of 2026.

The completion of the Proposed Combination will result in a “Change of Control,” as defined in the terms and conditions of the convertible bond issued by Saipem and denominated “€500,000,000 Senior Unsecured Guaranteed Equity Linked Bonds due 2029”.

Documentation

In connection with the Proposed Combination, the following documents, among others, will be made available:

The notice of call of each of Saipem and Subsea7’s Extraordinary General Meetings
The common merger plan approved by the Boards of Directors of each of Saipem and Subsea7 (the “Common Merger Plan”), along with the consolidated financial statements of Saipem and Subsea7 for the last three financial years and the merger related interim financial statements of Saipem and Subsea7 as of 30 June 2025
The reports of the Board of Directors of each of Saipem and Subsea7 describing the Proposed Combination
The independent expert reports prepared for each of Saipem and Subsea7 in connection with the Proposed Combination

These documents will be available at the companies’ registered seats and published on each party’s website. Where required under applicable laws and regulations, these documents will be disclosed also through the authorised storage mechanism (SDIR) for Saipem and through an officially appointed mechanism (OAM) for Subsea7.

The Common Merger Plan will also be filed with the Companies’ Register of Milan Monza Brianza Lodi, and the Luxembourg Trade and Companies Register, and will also be published in the Recueil Electronique des Sociétés et Associations in Luxembourg (the Luxembourg legal gazette for company announcements) (RESA)¹⁶.

Advisors

Goldman Sachs Bank Europe SE, Succursale Italia is acting as lead financial advisor to Saipem, and Deutsche Bank AG, Milan Branch as financial advisor to Saipem. Clifford Chance LLP is serving as global legal counsel to Saipem (including as to matters of Italian, English, US and Luxembourg Law), while Advokatfirmaet Thommessen AS is serving as legal counsel to Saipem as to matters of Norwegian law.

Kirk Lovegrove & Company Limited is acting as lead financial advisor and Deloitte LLP is acting as financial advisor to Subsea7. Freshfields LLP is serving as global legal counsel to Subsea7 (including as to matters of Italian, US and English Law), while Elvinger Hoss Prussen société anonyme and Advokatfirmaet Wiersholm AS are serving as legal counsel to Subsea7 as to matters of Luxembourg and Norwegian law, respectively.

Enquiries

Saipem is a global leader in the engineering and construction of major projects for the energy and infrastructure sectors, both offshore and onshore. Saipem is “One Company” organized into business lines: Asset Based Services, Drilling, Energy Carriers, Offshore Wind, Sustainable Infrastructures, Robotics & Industrialised Solutions. The company has 5 fabrication yards and an offshore fleet of 17 owned construction vessels and 13 drilling rigs, of which 9 owned. Always oriented towards technological innovation, the company’s purpose is “Engineering for a sustainable future”. As such Saipem is committed to supporting its clients on the energy transition pathway towards Net Zero, with increasingly digital means, technologies and processes geared for environmental sustainability. Listed on the Milan Stock Exchange, it is present in more than 50 countries around the world and employs about 30,000 people of over 130 nationalities.

Subsea7 is a global leader in the delivery of offshore projects and services for the energy industry. Subsea7 makes offshore energy transition possible through the continuous evolution of lower-carbon oil and gas and by enabling the growth of renewables and emerging energies.

No Offer or Solicitation

This document is not an offer of merger consideration shares in the United States. Neither the merger consideration shares nor any other securities have been or will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and neither the merger considerations shares nor any other securities may be offered, sold or delivered within or into the United States, except pursuant to a registration statement filed pursuant to the Securities Act or an applicable exemption from registration or in a transaction otherwise not subject to the Securities Act. This document must not be forwarded, distributed or sent, directly or indirectly, in whole or in part, in or into the United States. This document does not constitute an offer of or an invitation by or on behalf of, Saipem or Subsea7, or any other person, to purchase any securities.

Forward-looking Statements

This document contains forward-looking information and statements about Saipem and Subsea7 and their combined business after completion of the proposed merger of Saipem and Subsea 7 (the “Proposed Combination“). Forward-looking statements are statements that are not historical facts. These statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future operations, products and services, and statements regarding future performance, Free Cash Flow, EBITDA, dividends, and credit ratings. Forward-looking statements are generally identified by the words “expects,” “anticipates,” “believes,” “intends,” “estimates” and similar expressions. Although the managements of Saipem and Subsea7 believe that the respective expectations reflected in such forward-looking statements are reasonable, investors and holders of Saipem and Subsea7 shares are cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to predict and generally beyond the control of Saipem and Subsea7, respectively, that could cause actual results and developments to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. Except as required by applicable law, neither Saipem nor Subsea7 undertake any obligation to update any forward-looking information or statements.

This document includes estimates relating to the synergies expected to arise from the merger and the combination of the business operations of Saipem and Subsea7, as well as related integration costs, which have been prepared by Saipem and Subsea7 and are based on a number of assumptions and judgments. Such estimates present the expected future impact of the merger and the combination of the business operations of Saipem and Subsea7 on Saipem7’s business, financial condition and results of operations. The assumptions relating to the estimated synergies and related integration costs are inherently uncertain and are subject to a wide variety of significant business, economic, and competitive risks and uncertainties that could cause the actual synergies from the merger and the combination of the business operations of Saipem and Subsea7, if any, and related integration costs to differ materially from the estimates in this document. Further, there can be no certainty that the merger will be completed in the manner and timeframe described in this document, or at all.

Use of Non-IFRS Financial Measures

This announcement includes certain non-IFRS financial measures with respect to Saipem and Subsea7, including EBITDA and Free Cash Flow. These unaudited non-IFRS financial measures should be considered in addition to, and not as a substitute for, measures of Saipem’s and Subsea7’s financial performance prepared in accordance with IFRS. In addition, these measures may be defined differently than similar terms used by other companies.

Presentation of Financial Information

This document includes financial data regarding Saipem and Subsea7 and the combination of Saipem and Subsea7. Any Saipem7 financial data presented herein is presented for informational purposes only and is not intended to represent or be indicative of the actual consolidated results of operations or financial position of the combined entity and should not be taken as representative of the combined entity’s future consolidated results of operations or financial position had the Proposed Combination occurred as of such date. These estimates are based on financial information available at the time of the preparation of this document.

¹ Merger by way of absorption of Subsea7 into Saipem
² Combined Revenue for Saipem and Subsea7 as per last 12 months as of 31 December 2024
³ Combined EBITDA for Saipem and Subsea7 as per last 12 months as of 31 December 2024
⁴ Combined Free Cash Flow post repayment of lease liabilities for Saipem and Subsea7 as per last 12 months as of 31 December 2024
⁵ Combined backlog for Saipem and Subsea7 as of 31 March 2025
⁶ Combined backlog for Saipem and Subsea7 as of 31 March 2025
⁷ Subject to approval by the Shareholders’ Meeting and the Board of Directors of Saipem7
⁸ Subject to approval by the Shareholders’ Meeting and the Board of Directors of Saipem7
⁹ Subject to approval by the Subsea7 Shareholders’ Meeting
¹⁰ Such withdrawal right may only be exercised in respect of (a) Subsea7 shares registered in the securities account of the relevant shareholder with such shareholder’s financial intermediary on the date of publication of the Common Merger Plan on the Recueil Electronique des Sociétés et Associations – RESA (the Luxembourg legal gazette for company announcements) and (b) Subsea7 shares acquired after such date through inheritance or bequest. Further details will be specified in the convening notice to the Subsea7 Extraordinary General Meeting
¹¹ Subject to approval by the Shareholders’ Meeting and the Board of Directors
¹² The dividend paid by Saipem will be qualified as ordinary in nature
¹³ Saipem and Subsea7 will be entitled to distribute a reduced pro-rated amount should their respective financial results not meet the relevant financial targets, as detailed in the Common Merger Plan
¹⁴ Subject to approval by the Subsea7 Shareholders’ Meeting
¹⁵ Pursuant to Art. 49, paragraph 1, letter g) of Consob Regulation 11971/99
¹⁶ Subsea7 intends to file the Common Merger Plan with the Registre de Commerce et des Sociétés, Luxembourg (the Luxembourg Trade and Companies Register) for publication on the RESA no later than the second Oslo Børs trading day after the date of this announcement

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.
This stock exchange release was published by Katherine Tonks, Investor Relations, Subsea7, on 24 July 2025 at 00:40 CET.

Attachment

Merger Agreement Saipem and Subsea7 24 July 2025

The MIL Network –

July 24, 2025

MIL-OSI USA: Senators Scott, Crapo, Colleagues Reintroduce Legislation to Improve IRS Accountability

US Senate News:

Source: United States Senator for South Carolina Tim Scott

U.S. Senator Tim Scott (R-S.C.), Senate Finance Committee Chairman Mike Crapo (R-Idaho), and their Republican colleagues, reintroduced the IRS Accountability and Taxpayer Protection Act to modify rules for imposing tax penalties on Americans. This bill would require a supervisor or higher-level official to approve or deny penalties during the pre-assessment process. Establishing a supervisor sign-off requirement will improve transparency and accountability at the IRS to make sure that taxpayers are not given improper or automated penalties.

“IRS agents should seek proper approval before issuing penalties to American taxpayers,” said Sen. Scott. “I’m reintroducing the IRS Accountability and Taxpayer Protection Act to implement reforms that put the taxpayer first and supports good governance. This bill ensures no penalty can be imposed without written approval from a supervisor, bringing greater transparency and accountability to the process. American taxpayers deserve a fair system that protects their rights—not one that punishes them without oversight.”

“Senator Scott deserves the gratitude of millions of Americans for reintroducing legislation to strengthen this vital taxpayer safeguard against unauthorized penalties. Congress affirmed the IRS’s penalty authority must be balanced with the rights of taxpayers in the bipartisan IRS Restructuring and Reform Act of 1998. That provision has come under attack in recent years, endangering the hard-won protections that Americans depend upon in legitimate disputes with the IRS. The IRS Accountability and Taxpayer Protection Act gives hope to taxpayers who follow the rules that the IRS will do the same. We are proud to support Senator Scott’s bill. Lawmakers in both parties should do so too,” said Pete Sepp, president of the National Taxpayers Union.

“Democrats super-sized the IRS to ramp up audits on small businesses and households. They attempted to strip away section 6751(b) of the tax code, a provision that prevents IRS agents from supervisor shopping for a rubber stamp to shake down taxpayers. Scott’s bill ensures the IRS can’t intimidate taxpayers into settling by threatening unjust penalties. Taxpayers need more protection from the IRS, not less. Every lawmaker should support Sen. Scott’s bill and I applaud his leadership,” said Grover Norquist, president of Americans for Tax Reform.

In addition to U.S. Senators Scott and Crapo, the IRS Accountability and Taxpayer Protection Act is cosponsored by Senators Cynthia Lummis (R-Wyo.), Thom Tillis (R-N.C.), Chuck Grassley (R-Iowa), and Jim Risch (R-Idaho).

Full text of the IRS Accountability and Taxpayer Protection Act can be found here.

MIL OSI USA News –

July 24, 2025

MIL-OSI USA: Senator Scott Applauds $25 Million Grant for Dorchester County Corridor

US Senate News:

Source: United States Senator for South Carolina Tim Scott

WASHINGTON — U.S. Senator Tim Scott (R-S.C.) issued the following statement on the Better Utilizing Investments to Leverage Development (BUILD) grant that he advocated for review and the U.S. Department of Transportation (DOT) approved. This nearly $25 million grant for U.S. Highway 78 Phase 3A was the only grant awarded in South Carolina in Round 2 of 2025 BUILD grant funds.

“This BUILD grant is a vital investment in the safety of Dorchester’s residents and its future, and I look forward to seeing the development of this project that will improve safety for residents and overall corridor efficiency,” said Senator Scott. “The U.S. Highway 78 corridor has been a transportation priority for South Carolina for years, and this funding will deliver real, day-to-day improvements for the community.”

Sen. Scott wrote a letter to the DOT in support of the BUILD grant to address safety concerns and congestions levels along the corridor in Dorchester County.

This infrastructure investment is designed to improve traffic flow, expand transportation options, and enhance overall mobility and connectivity throughout the corridor, delivering substantial benefits to residents and commuters.

Background:

The U.S. 78 Phase 3A project will transform a critical transportation corridor by widening the highway from west of Orangeburg Road to North Maple Street in Dorchester County, South Carolina. The expansion will convert the existing two-lane roadway into a five-lane configuration featuring:

12-foot-wide travel lanes
15-foot-wide center turn lane
Approximately 3.39 miles of new sidewalks
Approximately 4.9 miles of bicycle lanes
Approximately 0.41 miles of multi-use path
Upgraded intersections with dedicated turn lanes and concrete medians
Replacement of the Rumphs Hill Creek culvert
Installation of curb and gutter systems along the corridor

MIL OSI USA News –

July 24, 2025

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

US Senate News:

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

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

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

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

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

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

Dear President Trump:

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

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

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

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

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

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

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

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

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

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

Sincerely,

MIL OSI USA News –

July 24, 2025

MIL-OSI USA: DelBene, Clarke Introduce Bill to Boost Smart City Tech

Source: United States House of Representatives – Congresswoman Suzan DelBene (1st District of Washington)

Today, Congresswomen Suzan DelBene (WA-01) and Yvette Clarke (NY-09) introduced the Smart Cities and Communities Act, legislation that would expand smart city technologies and improve federal coordination of these programs.

Smart technologies help improve community safety, mobility, and resilience against natural disasters, while also expanding communication and public services in large cities and small towns alike. These innovations help cities cut costs, alleviate traffic congestion, reduce air pollution, and lower energy use, all while generating economic growth and expanding opportunities for communities of all sizes.

With an estimated $1.4 trillion expected to be invested globally in smart technology over the next five years, U.S. cities must catch up. Research shows that every dollar spent on government technology can save nearly $4. Despite these clear benefits, the U.S. is currently lagging in smart city development.

This technology is already making an impact in cities across the nation, including Washington. In Redmond, it is being deployed to improve traffic flow and management. This system helps detect pedestrians in crosswalks, adjusts light timings for safer crossing, and modifies traffic signals based on real-time volumes to reduce congestion and make our intersections safer and less stressful for roadway users. In Bellevue, the city has a Smart Mobility Plan to help the city plan for shared-use mobility, autonomous vehicles, electric vehicles, and data management.

The Smart Cities and Communities Act would:

Enhance federal coordination of smart city programs, including improved reporting and demonstration of the value and utility of smart city systems.
Provide assistance and resources to local governments interested in implementing smart city technologies, making them more accessible in suburban and rural areas.
Develop a skilled domestic workforce to support smart cities.
Improve the quality and performance of smart city technologies while assessing and enhancing cybersecurity and privacy protections.
Foster international collaboration and trade in smart city technologies.

“Investing in smart city technology will propel our nation into a bright future, powered by more livable communities,” said DelBene. “The Smart Cities and Communities Act allows local governments to equip themselves with the cutting-edge tools to increase connectivity and develop green infrastructure. This important development will strengthen the middle class by generating good jobs and cutting pollution, ensuring the United States maintains its position as a global leader in innovation.”

“Ensuring our communities are equipped with the smart city technologies they need to be cleaner, safer, and more resilient to the changing climate must be among Congress’ highest priorities,” said Clarke. “In the face of the worsening climate crisis, we have a responsibility to provide every American with equitable access to the innovations that will protect them from whatever an uncertain future might bring. I am proud to stand alongside my colleague, Congresswoman Suzan DelBene, to introduce this forward-looking legislation that will position the United States as a leader in the global movement towards climate resilience and facilitate the critical upgrades our communities are depending on Congress to deliver.”

“BSA commends Representatives DelBene and Clarke for reintroducing the Smart Cities and Communities Act, which recognizes the potential of artificial intelligence and emerging technologies to transform local communities. By encouraging adoption of and investments in AI-driven solutions, and supporting robust AI training and data utilization, this legislation will help communities realize smart city benefits that are efficient, cost-effective, and enhance public services,” said Craig Albright, SVP of US Government Relations, Business Software Alliance.

The full text of the legislation can be found here.

MIL OSI USA News –

July 24, 2025

MIL-OSI USA: Grassley, Colleagues Introduce Bipartisan Legislation to Increase Market Competition for Prescription Drugs, Lower Prices for Consumers

US Senate News:

Source: United States Senator for Iowa Chuck Grassley

WASHINGTON – Sen. Chuck Grassley (R-Iowa) joined three Senate colleagues to reintroduce the Short on Competition Act to increase competition in the pharmaceutical industry and lower prices for consumers. The legislation is led by Sens. Amy Klobuchar (D-Minn.) and Mike Lee (R-Utah) and sponsored by Sen. Dick Durbin (D-Ill.). Grassley is the current chairman of the Senate Judiciary Committee and the former chairman and a senior member of the Senate Finance Committee.

The bipartisan legislation would allow the Secretary of Health and Human Services to grant expedited reviews and inspections, as well as temporary importation, when there is a prescription drug shortage or if there is likely to be a shortage. The secretary can also take these actions when there are fewer than five competitors in a market for prescription drugs that have been approved for at least 10 years.

“Iowans are fed up with the high price of prescription drugs, and a driver of those costs is lack of competition. Time and again, we see that limited options in the marketplace lead to higher prices for patients. Our bill will bring more options to the market, giving consumers relief through alternatives to a single high-priced drug,” Grassley said.

“If drug companies know new competitors can quickly enter the market, maybe they’ll think twice before raising prices in the first place. More competition in the marketplace will lead to more affordable prescription drugs for American consumers,” Klobuchar said. “This bipartisan legislation will help lower drug prices by prioritizing approvals and safely allowing temporary drug importation of products to address markets that lack competition.”

“Big Pharma monopolies are keeping lifesaving drugs out of reach for too many Americans,” Lee said. “Cutting red tape for manufacturers will allow new competitors into the health care market – bringing drug prices down and quality up. The Short on Competition Act will give Americans more options for the medicine they need, protecting them from drug shortages and lowering their costs.”

“American families should be able to afford life-saving medication. However, many medications, despite having been on the market for decades, are unaffordable. It is time that Big Pharma is held accountable for its abusive price gouging tactics,” Durbin said. “I am joining my colleagues in reintroducing the bipartisan Short on Competition Act to combat Big Pharma’s price gouging and lower prescription drug costs for Americans. Drug costs are a problem; this bill is a solution.”

Background:

Grassley has long championed efforts to reduce the cost of prescription drugs. Three pieces of legislation authored and coauthored by Grassley have been signed into law to combat anticompetitive practices and stop drug makers from reaping profits at the expense of taxpayers and consumers. Grassley has also led in-depth congressional investigations to expose those responsible for prescription drug price gouging.

Other actions include:

May 2025: Grassley chaired a Senate Judiciary Committee hearing focused on the impacts of Pharmacy Benefit Managers’ (PBMs) increasing role in the drug supply chain and the needs of rural pharmacies.
April 2025: The Senate Judiciary Committee — which Grassley currently chairs — passed six Grassley-led bills to boost competition in the pharmaceutical industry and improve patients’ access to more affordable prescription drugs.
January 2025: Grassley welcomed the Federal Trade Commission’s (FTC) second interim staff report on PBMs and urged congressional and executive branch action.
July 2024: Grassley welcomed the FTC’s interim staff report on PBMs and urged congressional and executive branch action.
January 2024: Grassley sent a letter urging the FTC to complete its investigation into the health care industry’s most powerful prescription drug middlemen.
November 2023: The Finance Committee adopted a Grassley-led provision to strengthen oversight of Centers for Medicare & Medicaid Services (CMS) and hold PBMs accountable.
July 2023: The Finance Committee adopted several Grassley-led PBM accountability provisions.
March 2023: The Senate Commerce Committee passed a Grassley-backed bill to hold PBMs accountable for unfair practices driving up costs for consumers.
February 2023: The Senate Judiciary Committee passed five Grassley-led bills to boost pharmaceutical industry competition and improve patients’ access to affordable prescription drugs.
October 2022: Grassley led a bipartisan letter urging the FTC to complete its investigation into PBMs to shine light on drug pricing practices.
January 2021: Grassley and Senate Finance Committee Ranking Member Ron Wyden (D-Ore.) released a two-year bipartisan investigation into insulin price gouging.
August 2018: Grassley requested the FTC assess pharmaceutical supply chain intermediaries.

Learn more about Grassley’s persistent efforts to lower prescription drug costs HERE.

-30-

MIL OSI USA News –

July 24, 2025

MIL-OSI New Zealand: Track repair confirmed for Waimata Gemstone Bay

Source: NZ Department of Conservation

Date: 24 July 2025

Tracks to Gemstone and Stingray bays were damaged in the same February 2023 extreme weather events which resulted in the extended closure of walking access to Mautohe Cathedral Cove.

DOC’s Coromandel Operations Manager Nick Kelly says DOC has worked hard to assess the tracks and was pleased to find a good solution for Gemstone.

“A repair project will see a reroute of the existing track and a new 40 metre section constructed in time for the summer visitor season, all going to plan.

“We’ve explored a couple of options to reinstate access to Waimata Gemstone Bay and we’ve chosen what we consider to be the most cost-effective and simplest solution.”

The new route will take visitors away from a slip risk area and will be much safer to construct. It will require some vegetation removal and the construction of box steps in places. The track will be gravel with wooden edging and connect with existing access stairs.

The reinstatement option also means there’s no need for geotechnical stabilisation.

Nick cautioned Waimata Gemstone Bay and the track are still prone to coastal erosion, but the choice of a low complexity option means future repairs are likely to be cheaper and quicker.

“Reinstating the Waimata Gemstone Bay track will restore land access to a popular snorkelling destination within Te Whanganui-O-Hei Marine Reserve,” says Nick.

“The bay’s rocky reef has long supported educational snorkelling trips by local schools and provides both visitors and the community the opportunity to experience marine life in a marine protected area.”

Investigations into reinstating walking access to nearby Te Karaka Stingray Bay, have highlighted significant difficulties, costs and visitor risks, Nick says. Other considerations are the cost to maintain hard infrastructure at the site and the long-term sustainability of having a track to the site.

“Unfortunately, this means walking access to Stingray Bay will not be reinstated.

“The current steps are gradually being twisted by a slow-slip landslide which over time will require significant maintenance if access is reestablished. Nick acknowledges there will be disappointment about the Te Karaka Stingray Bay decision but says it’s a tough, but necessary, call.

“Geotechnical advice confirms the cliffs surrounding the beach are highly unstable, with active rockfall areas and limited practical options for mitigation.

“Visitors would be forced into hazardous zones by rising tides or walk near to unstable cliff – and we don’t think that’s sensible or safe considering the type of visitor who goes there.”

Te Karaka Stingray Bay can still be reached from the sea. Anyone planning to do this is urged to check weather, sea and tide conditions.

DOC is working with mana whenua and the community to identify the best options for the long-term management and protection of Cathedral Cove Recreation Reserve.

With over 2000 tourism businesses operating in protected natural areas, nature tourism is worth $3.4 billion each year and is vital in supporting local communities like Hahei.

Contact

For media enquiries contact:

Email: media@doc.govt.nz

MIL OSI New Zealand News –

July 24, 2025

MIL-OSI: Home BancShares, Inc. Announces Third Quarter Cash Dividend

Source: GlobeNewswire (MIL-OSI)

CONWAY, Ark., July 23, 2025 (GLOBE NEWSWIRE) — Home BancShares, Inc. (NYSE: HOMB), parent company of Centennial Bank, today announced that its Board of Directors has declared a regular $0.20 per share quarterly cash dividend payable September 3, 2025, to shareholders of record August 13, 2025. This cash dividend is consistent with the dividend paid during the second quarter of 2025.

Home BancShares, Inc. is a bank holding company, headquartered in Conway, Arkansas. Its wholly-owned subsidiary, Centennial Bank, provides a broad range of commercial and retail banking plus related financial services to businesses, real estate developers, investors, individuals and municipalities. Centennial Bank has branch locations in Arkansas, Florida, Texas, South Alabama and New York City. The Company’s common stock is traded through the New York Stock Exchange under the symbol “HOMB.”

FOR MORE INFORMATION CONTACT:
Donna Townsell
Senior Executive Vice President &
Director of Investor Relations
(501) 328-4625

The MIL Network –

July 24, 2025

MIL-OSI USA: The One Big Beautiful Bill Drives Business Growth

US Senate News:

Source: United States Senator for Idaho Mike Crapo

Washington, D.C.–The One Big Beautiful Bill Act drives economic growth by making key business provisions permanent, giving businesses the certainty they need to invest, hire and grow.
“Permanent tax policy provides businesses with the certainty they need to invest, save and plan for the future, which will power economic growth and ignite the U.S. economy,” said Finance Committee Chairman Mike Crapo (R-Idaho).
Key wins:
Full expensing for domestic R&D to encourage domestic innovation.
Full expensing for new capital investments, like machinery and equipment, to boost domestic production.
Restores interest deductibility to a globally competitive standard to help finance critical domestic investments.
What they are saying:
“The Chamber thanks Leader Thune, Chairman Crapo, and all who are working to make the pro-growth reforms of the 2017 Tax Cuts and Jobs Act permanent, including the deduction for domestic R&D expenditures, 100% bonus depreciation for certain business investments, and an expanded business interest limitation. The Chamber applauds the Senate for voting to make these provisions permanent features of the tax code.” – U.S. Chamber of Commerce
“[This bill sends] a swift, decisive signal that America will remain a premier destination for businesses to invest, hire and grow.” – Business Roundtable
“I applaud Chairman Mike Crapo, Leader John Thune and their Senate colleagues for advancing international tax policies that keep the U.S. the top destination for global investment. These provisions will help sustain American jobs, drive innovation, and reinforce a stable tax environment that attracts cross-border capital and world-class know-how.” – Global Business Alliance President and CEO Jonathan Samford

MIL OSI USA News –

July 24, 2025

MIL-OSI: CVB Financial Corp. Reports Earnings for the Second Quarter 2025

Source: GlobeNewswire (MIL-OSI)

Second Quarter 2025

Net Earnings of $50.6 million, or $0.36 per share
Return on Average Assets of 1.34%
Efficiency Ratio of 45.6%
Net Interest Margin of 3.31%

Ontario, CA, July 23, 2025 (GLOBE NEWSWIRE) — CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the “Company”), announced earnings for the quarter ended June 30, 2025.

CVB Financial Corp. reported net income of $50.6 million for the quarter ended June 30, 2025, compared with $51.1 million for the first quarter of 2025 and $50.0 million for the second quarter of 2024. Diluted earnings per share were $0.36 for the second quarter, compared to $0.36 for the prior quarter and $0.36 for the same period last year.

For the second quarter of 2025, annualized return on average equity (“ROAE”) was 9.06%, annualized return on average tangible common equity (“ROATCE”) was 14.08%, and annualized return on average assets (“ROAA”) was 1.34%.

David Brager, President and Chief Executive Officer of Citizens Business Bank, commented, “Citizens Business Bank’s performance in the second quarter demonstrates our continued financial strength and focus on our vision of serving the comprehensive financial needs of small to medium sized businesses and their owners. Our consistent financial performance is highlighted by our 193 consecutive quarters, or more than 48 years, of profitability, and our 143 consecutive quarters of paying cash dividends. I would like to thank our customers and associates for their continuing commitment and loyalty.”

Additional Highlights for the Second Quarter of 2025

Pre-provision / pretax income increased from $67.5 million in the first quarter of 2025 to $68.8 million
Cost of funds decreased to 1.03% from 1.04% in the first quarter of 2025
Deposits and customer repos grew by $123 million from the end of the first quarter of 2025
Loans decreased by $5 million from the end of the first quarter 2025
TCE Ratio of 10.0% & CET1 Ratio of 16.5%

INCOME STATEMENT HIGHLIGHTS

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
	(Dollars in thousands, except per share amounts)
Net interest income	$	111,608		$	110,444		$	110,849		$	222,052		$	223,310
Recapture of (provision for) credit losses		–			2,000			–			2,000			–
Noninterest income		14,744			16,229			14,424			30,973			28,537
Noninterest expense		(57,557	)		(59,144	)		(56,497	)		(116,701	)		(116,268	)
Income taxes		(18,231	)		(18,425	)		(18,741	)		(36,656	)		(36,945	)
Net earnings	$	50,564		$	51,104		$	50,035		$	101,668		$	98,634
Earnings per common share:
Basic	$	0.36		$	0.37		$	0.36		$	0.72		$	0.71
Diluted	$	0.36		$	0.36		$	0.36		$	0.72		$	0.71

NIM		3.31	%		3.31	%		3.05	%		3.31	%		3.07	%
ROAA		1.34	%		1.37	%		1.24	%		1.35	%		1.22	%
ROAE		9.06	%		9.31	%		9.57	%		9.18	%		9.44	%
ROATCE		14.08	%		14.51	%		15.51	%		14.29	%		15.32	%
Efficiency ratio		45.55	%		46.69	%		45.10	%		46.12	%		46.17	%

Net Interest Income
Net interest income was $111.6 million for the second quarter of 2025, representing a $1.2 million, or 1.1%, increase from the first quarter of 2025, and a $0.8 million, or 0.7%, increase from the second quarter of 2024. Interest income increased by $1.2 million, or 0.84%, from the first quarter, while interest expense remained the same at $32.6 million in the second quarter of 2025.

The increase in net interest income of $0.8 million, or 0.7%, compared to the second quarter of 2024 was the net result of a $15.6 million decline in interest expense, that exceeded the $14.9 million decline in interest income. The decrease in interest expense was the result of a $1.19 billion decrease in average interest-bearing liabilities compared to the second quarter of 2024. The decline in interest-bearing liabilities was driven by a decrease in borrowings that resulted from the early redemptions of Bank Term Funding Program (“BTFP”) advances in the third quarter of 2024. The decrease in interest income was the result of a $1.11 billion decrease in average interest-earning assets, that coincided with the Company’s deleveraging strategy in the second half of 2024 resulting in the Company’s borrowings declining by $1.34 billion.

Net Interest Margin
Our tax equivalent net interest margin was 3.31% for the second quarter of 2025, compared to 3.31% for the first quarter of 2025 and 3.05% for the second quarter of 2024. The yield on our interest-earning assets for the second quarter of 2025 remained unchanged, at 4.28%, compared to the prior quarter, while our cost of funds decreased slightly to 1.03% for the second quarter of 2025, from 1.04% in the prior quarter. Loan yields remained unchanged for the second quarter of 2025 at 5.22%. The slight decrease in our cost of funds was primarily due to a two-basis point decrease in our cost of deposits, from .86% to .84%. The decrease in cost of deposits was partially offset by an increase in the average balance and cost of customer repurchase agreements. For the second quarter of 2025 average customer repurchase agreements were $376.6 million at a cost of 1.66%, compared to $317.3 million and 1.24% for the prior quarter.

Net interest margin for the second quarter of 2025 increased by 26-basis points compared to the second quarter of 2024, primarily as a result of 35-basis point decrease in cost of funds, to 1.03% for the second quarter of 2025, from 1.38% in the same quarter of last year. The decrease in cost of funds was primarily due to a $1.34 billion decline in average borrowings, which had an average cost of 4.79% in the second quarter of 2024. For the second quarter of 2025, the Company had average deposits and customer repurchase agreements of $12.18 billion, at an average cost of 0.87%, and average borrowings of $508.2 million, at an average cost of 4.61%, compared to the second quarter of 2024 in which borrowings averaged $1.85 billion, at an average cost of 4.79%, and average deposits and customer repurchase agreements of $12.17 billion had an average cost of 0.87%. The decrease in cost of funds, exceeded the modest decrease in interest earning asset yields from 4.37% for the second quarter of 2024 to 4.28% in the second quarter of 2025. The decrease in earning asset yields was impacted by a decrease in loan yields from 5.26% for the second quarter of 2024 to 5.22% for the second quarter of 2025, and a decrease in investment securities yields to 2.62% in the second quarter of 2025, from 2.71% for the second quarter of 2024. The decrease in investment yields was primarily the result of a $2.8 million decrease in the positive interest spread on pay-fixed swaps.

Earning Assets and Deposits
Average earning assets increased by $1.7 million compared to the first quarter of 2025 and declined by $1.12 billion when compared to the second quarter of 2024. The average balance in funds held at the Federal Reserve increased by $170.5 million in the second quarter of 2025 compared to the first quarter of 2025, while average loans decreased by $112.6 million and average investment securities decreased by $61.3 for the same period. Compared to the second quarter of 2024, the decrease in average earning assets was due to decreases of $376.7 million in average loans, $359.5 million in average investment securities, and $372.1 million in funds held at the Federal Reserve. The average balance on noninterest-bearing deposits increased by $45.3 million, or 0.65%, from the first quarter of 2025 and the average balance on interest-bearing deposits and customer repurchase agreements decreased by $51.2 million from the same period. Compared to the second quarter of 2024, the average balance on total deposits and customer repurchase agreements increased by $14.9 million, or 0.12%. On average, noninterest-bearing deposits were 60.47% of total deposits during the most recent quarter, compared to 59.92% for the first quarter of 2025 and 60.13% for the second quarter of 2024.

SELECTED FINANCIAL HIGHLIGHTS	Three Months Ended
	June 30, 2025					March 31, 2025					June 30, 2024
	(Dollars in thousands)
Yield on average investment securities (TE)	2.62%					2.63%					2.71%
Yield on average loans	5.22%					5.22%					5.26%
Yield on average earning assets (TE)	4.28%					4.28%					4.37%
Cost of deposits	0.84%					0.86%					0.88%
Cost of funds	1.03%					1.04%					1.38%
Net interest margin (TE)	3.31%					3.31%					3.05%

*Average Earning Asset Mix*	Avg		% of Total			Avg		% of Total			Avg		% of Total
Total investment securities	$	4,847,415		35.75	%	$	4,908,718		36.21	%	$	5,206,959		35.49	%
Interest-earning deposits with other institutions		337,929		2.49	%		162,389		1.20	%		716,916		4.89	%
Loans		8,354,898		61.63	%		8,467,465		62.46	%		8,731,587		59.51	%
Total interest-earning assets		13,558,254					13,556,584					14,673,474

Provision for Credit Losses
There was no provision for credit losses in the second quarter of 2025, compared to a $2.0 million recapture of provision for credit losses in the first quarter of 2025 and no provision in the second quarter of 2024. Net charge-offs for the second quarter of 2025 were $249,000 compared to net recoveries of $130,000 in the prior quarter. Allowance for credit losses represented 0.93% of gross loans at June 30, 2025 compared to 0.94% at March 31, 2025.

Noninterest Income
Noninterest income was $14.7 million for the second quarter of 2025, compared with $16.2 million for the first quarter of 2025 and $14.4 million for the second quarter of 2024. Noninterest income decreased in the second quarter of 2025 compared to the first quarter primarily due to a $2.2 million gain recognized during the first quarter of 2025 on the sale of four OREO properties. Excluding gains, noninterest income grew by approximately $700,000, including a $397,000 increase of income from Bank Owned Life Insurance (“BOLI”). BOLI income also increased in the second quarter of 2025 compared to the second quarter of 2024 by $285,000. Compared to the first quarter of 2025, Trust and investment services income grew by $304,000, or 8.9%, while growing by $287,000, or 8.4% over the second quarter of 2024.

Noninterest Expense
Noninterest expense for the second quarter of 2025 was $57.6 million, compared to $59.1 million for the first quarter of 2025 and $56.5 million for the second quarter of 2024. Noninterest expense decreased in the second quarter of 2025 compared to the first quarter of 2025 primarily due to a $500,000 provision for unfunded loan commitments in the first quarter of 2025 and a $1.5 million decrease in salaries and benefits. The decrease in staff expense was primarily due to higher payroll taxes in the first quarter, resulting in a $1.2 million decrease in the second quarter of 2025.

The year-over-year increase in noninterest expense of $1.1 million, includes the impact of a $500,000 expense reduction in the second quarter of 2024 related to a decrease in reserves for unfunded loan commitments and a $603,000 increase in regulatory assessment expenses. The increase in regulatory assessment expenses in the second quarter of 2025 was due to a $700,000 reduction of an FDIC special assessment accrual in the second quarter of 2024. As a percentage of average assets, noninterest expense was 1.52% for the second quarter of 2025, compared to 1.58% for the first quarter of 2025 and 1.40% for the second quarter of 2024. The efficiency ratio for the second quarter of 2025 was 45.6%, compared to 46.7% for the first quarter of 2025 and 45.1% for the second quarter of 2024.

Income Taxes
Our effective tax rate for the quarter ended June 30, 2025 was 26.50%, compared with 26.50% for the first quarter of 2025, and 27.25% for the same period of 2024. Our estimated annual effective tax rate can vary depending upon the level of tax-advantaged income from municipal securities and BOLI, as well as available tax credits.

BALANCE SHEET HIGHLIGHTS

Assets
The Company reported total assets of $15.41 billion at June 30, 2025. This represented an increase of $157.5 million, or 1.03%, from total assets of $15.26 billion at March 31, 2025. The increase in assets included a $202.5 million increase in interest-earning balances due from the Federal Reserve, offset by a $80.7 million decrease in investment securities, and a $5.1 million decrease in total loans.

Total assets increased by $260.5 million, or 1.72%, from total assets of $15.15 billion at December 31, 2024. The increase in assets included a $492.8 million increase in interest-earning balances due from the Federal Reserve, offset by a $108.2 million decrease in investment securities, and a $175.8 million decrease in net loans.

Total assets at June 30, 2025 decreased by $737.4 million, or 4.57%, from total assets of $16.15 billion at June 30, 2024. The decrease in assets was primarily due to a decrease of $362.1 million in investment securities, a decrease of $318.6 million in net loans and a $126.2 million decrease in interest-earning balances due from the Federal Reserve.

Investment Securities
Total investment securities were $4.81 billion at June 30, 2025, a decrease of $80.7 million, or 1.65% from the prior quarter end, a decrease of $108.2 million, or 2.20% from $4.92 billion at December 31, 2024, and a decrease of $362.1 million, or 7.00%, from $5.18 billion at June 30, 2024.

At June 30, 2025, investment securities held-to-maturity (“HTM”) totaled $2.33 billion, a decrease of $31.9 million, or 1.35% from prior quarter end, a decrease of $52.4 million, or 2.20% from December 31, 2024, and a decrease of $102.7 million, or 4.22%, from June 30, 2024.

At June 30, 2025, investment securities available-for-sale (“AFS”) totaled $2.49 billion, inclusive of a pre-tax net unrealized loss of $363.7 million. AFS securities decreased by $48.8 million, or 1.92% from the prior quarter end, decreased by $55.8 million, or 2.20% from December 31, 2024, and decreased by $259.5 million, or 9.45%, from $2.75 billion at June 30, 2024. The pre-tax unrealized loss decreased by $24.7 million from the end of the prior quarter, while decreasing $84 million from December 31, 2024 and decreasing by $124.2 million from June 30, 2024.

Loans
Total loans and leases, at amortized cost, of $8.36 billion at June 30, 2025 decreased by $5.1 million, or 0.06%, from March 31, 2025. The quarter-over quarter decrease in loans included decreases of $29.9 million in commercial and industrial loans, and $18.1 million in dairy and livestock loans, partially offset by increases of $26.8 million in commercial real estate loans and $18.9 million in single-family residential (“SFR”) mortgage loans.

Total loans and leases, at amortized cost, decreased by $177.9 million, or 2.08%, from December 31, 2024. The decrease includes decreases of $186.0 million in dairy and livestock loans and $12.8 million in commercial and industrial loans, offset by increases of $19.3 million in SFR mortgage loans and $10.0 million in commercial real estate loans.

Total loans and leases, at amortized cost, decreased by $323.3 million, or 3.72%, from June 30, 2024. The decrease included decreases of $147.5 million in commercial real estate loans, $116.8 million in dairy & livestock loans and agribusiness loans, $43.8 million in commercial and industrial loans, and $34.6 million in construction loans, offset by an increase of $20.8 million in SFR mortgage loans.

Asset Quality
During the second quarter of 2025, we experienced credit charge-offs of $429,000 and total recoveries of $180,000, resulting in net charge-offs of $249,000. The allowance for credit losses (“ACL”) totaled $78.0 million at June 30, 2025, compared to $78.3 million at March 31, 2025 and $82.8 million at June 30, 2024. At June 30, 2025, ACL as a percentage of total loans and leases outstanding was 0.93%. This compares to 0.94% at March 31, 2025 and December 31, 2024 and 0.95% at June 30, 2024.

Nonperforming loans, defined as nonaccrual loans, including modified loans on nonaccrual, plus loans 90 days past due and accruing interest, and nonperforming assets, defined as nonperforming plus OREO, are highlighted below.

Nonperforming Assets and Delinquency Trends	June 30,			March 31,			June 30,
	2025			2025			2024
Nonperforming loans	(Dollars in thousands)
Commercial real estate	$	24,379		$	24,379		$	21,908
SBA		1,265			1,024			337
Commercial and industrial		265			173			2,712
Dairy & livestock and agribusiness		60			60			–
Total	$	25,969		$	25,636		$	24,957
% of Total loans		0.31	%		0.31	%		0.29	%

OREO
Commercial real estate	$	661		$	495		$	–
SFR mortgage		–			–			647
Total	$	661		$	495		$	647

Total nonperforming assets	$	26,630		$	26,131		$	25,604
% of Nonperforming assets to total assets		0.17	%		0.17	%		0.16	%

Past due 30-89 days (accruing)
Commercial real estate	$	–		$	–		$	43
SBA		3,419			718			–
Commercial and industrial		–			–			103
Total	$	3,419		$	718		$	146
% of Total loans		0.04	%		0.01	%		0.00	%
Total nonperforming, OREO, and past due	$	30,049		$	26,849		$	25,750

Classified Loans	$	73,422		$	94,169		$	124,728

The $499,000 increase in nonperforming assets from March 31, 2025 was primarily due to the addition of one nonperforming SBA loan in the amount of $620,000. Classified loans are loans that are graded “substandard” or worse. Classified loans decreased $20.7 million quarter-over-quarter, primarily due to a decrease of $19.9 million in classified commercial real estate loans.

Deposits & Customer Repurchase Agreements
Deposits of $11.98 billion and customer repurchase agreements of $404.2 million totaled $12.39 billion at June 30, 2025. This represented a net increase of $122.9 million compared to $12.27 billion at March 31, 2025. Total deposits and customer repurchase agreements increased by $179 million compared to December 31, 2024 and increased $329.8 million, or 2.74% when compared to $12.06 billion at June 30, 2024.

Noninterest-bearing deposits were $7.25 billion at June 30, 2025, an increase of $62.9 million, or 0.87%, when compared to $7.18 billion at March 31, 2025. Noninterest-bearing deposits increased by $210.0 million, or 2.98%, when compared to $7.04 billion at December 31, 2024, and increased by $157.0 million, or 2.21% when compared to $7.09 billion at June 30, 2024. At June 30, 2025, noninterest-bearing deposits were 60.47% of total deposits, compared to 59.92% at March 31, 2025, 58.90% at December 31, 2024 and 60.13% at June 30, 2024.

Borrowings
As of June 30, 2025, total borrowings consisted of $500 million of FHLB advances. The FHLB advances include $300 million, at an average cost of approximately 4.73%, maturing in May of 2026, and $200 million, at a cost of 4.27% maturing in May of 2027. Total borrowings decreased by $1.3 billion from June 30, 2024. The $1.8 billion of borrowings at June 30, 2024 consisted of $500 million of FHLB advances and $1.3 billion from the Federal Reserve’s Bank Term Funding Program, at a cost of 4.76%, all of which were redeemed before the end of 2024.

Capital
The Company’s total equity was $2.24 billion at June 30, 2025. This represented an overall increase of $54.0 million from total equity of $2.19 billion at December 31, 2024. Increases to equity included $101.7 million in net earnings and a $43.9 million increase in other comprehensive income that were partially offset by $55.6 million in cash dividends. During the first half of 2025, we repurchased, under our stock repurchase plan, 2,063,564 shares of common stock, at an average repurchase price of $18.15, totaling $37.5 million. Our tangible book value per share at June 30, 2025 was $10.64.

Our capital ratios under the revised capital framework referred to as Basel III remain well-above regulatory standards.

		CVB Financial Corp. Consolidated
Capital Ratios	Minimum Required Plus Capital Conservation Buffer	June 30, 2025	December 31, 2024	June 30, 2024

Tier 1 leverage capital ratio	4.0%	11.8%	11.5%	10.5%
Common equity Tier 1 capital ratio	7.0%	16.5%	16.2%	15.3%
Tier 1 risk-based capital ratio	8.5%	16.5%	16.2%	15.3%
Total risk-based capital ratio	10.5%	17.3%	17.1%	16.1%

Tangible common equity ratio		10.0%	9.8%	8.7%

CitizensTrust
As of June 30, 2025 CitizensTrust had approximately $5.0 billion in assets under management and administration, including $3.54 billion in assets under management. Revenues were $3.7 million for the second quarter of 2025, compared to $3.4 million in the first quarter of 2025 and $3.4 million for the second quarter of 2024. CitizensTrust provides trust, investment and brokerage related services, as well as financial, estate and business succession planning.

Corporate Overview
CVB Financial Corp. (“CVBF”) is the holding company for Citizens Business Bank. CVBF is one of the 10 largest bank holding companies headquartered in California with more than $15 billion in total assets. Citizens Business Bank is consistently recognized as one of the top performing banks in the nation and offers a wide array of banking, lending and investing services with more than 60 banking centers and three trust office locations serving California.

Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol “CVBF”. For investor information on CVB Financial Corp., visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab.

Conference Call
Management will hold a conference call at 7:30 a.m. PDT/10:30 a.m. EDT on Thursday, July 24, 2025, to discuss the Company’s second quarter 2025 financial results. The conference call can be accessed live by registering at: https://register-conf.media-server.com/register/BIe2ad85fddf3443dbacab8109594ab423

The conference call will also be simultaneously webcast over the Internet; please visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab to access the call from the site. Please access the website 15 minutes prior to the call to download any necessary audio software. This webcast will be recorded and available for replay on the Company’s website approximately two hours after the conclusion of the conference call and will be available on the website for approximately 12 months.

Safe Harbor
Certain statements set forth herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will likely result”, “aims”, “anticipates”, “believes”, “could”, “estimates”, “expects”, “hopes”, “intends”, “may”, “plans”, “projects”, “seeks”, “should”, “will,” “strategy”, “possibility”, and variations of these words and similar expressions help to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results or performance to differ materially from those projected. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies, goals and statements about the Company’s outlook regarding revenue and asset growth, financial performance and profitability, capital and liquidity levels, loan and deposit levels, growth and retention, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, the impact of business, economic, or political developments, the impact of monetary, fiscal and trade policies, and the impact of acquisitions we have made or may make. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company, and there can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors, in addition to those set forth below, could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements.

General risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct business; the effects of, and changes in, immigration, trade, tariff, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market and monetary fluctuations; the effect of acquisitions we have made or may make, including, without limitation, the failure to obtain the necessary regulatory approvals, 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 and key personnel into our operations; the timely development of competitive products and services and the acceptance of these products and services by new and existing customers; the impact of changes in financial services policies, laws, and regulations, including those concerning banking, taxes, securities, and insurance, and the application thereof by regulatory agencies; the effectiveness of our risk management framework and quantitative models; changes in the level of our nonperforming assets and charge-offs; the transition away from USD LIBOR and uncertainties regarding potential alternative reference rates, including SOFR; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible credit related impairments or declines in the fair value of loans and securities held by us; possible impairment charges to goodwill on our balance sheet; changes in customer spending, borrowing, and savings habits; the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; periodic fluctuations in commercial or residential real estate prices or values; our ability to attract or retain deposits or to access government or private lending facilities and other sources of liquidity; the possibility that we may reduce or discontinue the payment of dividends on our common stock; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; technological changes in banking and financial services; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism, and/or military conflicts, which could impact business and economic conditions in the United States and abroad; catastrophic events or natural disasters, including earthquakes, drought, climate change or extreme weather events that may affect our assets, communications or computer services, customers, employees or third party vendors; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including on our asset credit quality, business operations, and employees, as well as the impact on general economic and financial market conditions; cybersecurity threats and fraud and the costs of defending against them, including the costs of compliance with legislation or regulations to combat fraud and cybersecurity threats; our ability to recruit and retain key executives, board members and other employees, and our ability to comply with federal and state in employment laws and regulations; ongoing or unanticipated regulatory or legal proceedings or outcomes; and our ability to manage the risks involved in the foregoing.

Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s 2024 Annual Report on Form 10-K filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).

The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

Non-GAAP Financial Measures — Certain financial information provided in this earnings release has not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and is presented on a non-GAAP basis. Investors and analysts should refer to the reconciliations included in this earnings release and should consider the Company’s non-GAAP measures in addition to, not as a substitute for or as superior to, measures prepared in accordance with GAAP. These measures may or may not be comparable to similarly titled measures used by other companies.

Contact: David A. Brager
President and Chief
Executive Officer
(909) 980-4030

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)


	June 30, 2025			December 31, 2024			June 30, 2024
Assets
Cash and due from banks	$	195,063		$	153,875		$	174,454
Interest-earning balances due from Federal Reserve		543,573			50,823			669,740
Total cash and cash equivalents		738,636			204,698			844,194
Interest-earning balances due from depository institutions		11,004			480			7,345
Investment securities available-for-sale		2,486,306			2,542,115			2,745,796
Investment securities held-to-maturity		2,327,230			2,379,668			2,429,886
Total investment securities		4,813,536			4,921,783			5,175,682
Investment in stock of Federal Home Loan Bank (FHLB)		18,012			18,012			18,012
Loans and lease finance receivables		8,358,501			8,536,432			8,681,846
Allowance for credit losses		(78,003	)		(80,122	)		(82,786	)
Net loans and lease finance receivables		8,280,498			8,456,310			8,599,060
Premises and equipment, net		26,606			27,543			43,232
Bank owned life insurance (BOLI)		320,596			316,248			314,329
Intangibles		7,657			9,967			12,416
Goodwill		765,822			765,822			765,822
Other assets		431,763			432,792			371,403
Total assets	$	15,414,130		$	15,153,655		$	16,151,495
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	7,247,128		$	7,037,096		$	7,090,095
Investment checking		483,793			551,305			515,930
Savings and money market		3,669,912			3,786,387			3,409,320
Time deposits		583,990			573,593			774,980
Total deposits		11,984,823			11,948,381			11,790,325
Customer repurchase agreements		404,154			261,887			268,826
Other borrowings		500,000			500,000			1,800,000
Other liabilities		284,831			257,071			179,917
Total liabilities		13,173,808			12,967,339			14,039,068
Stockholders’ Equity
Stockholders’ equity		2,508,454			2,498,380			2,446,755
Accumulated other comprehensive loss, net of tax		(268,132	)		(312,064	)		(334,328	)
Total stockholders’ equity		2,240,322			2,186,316			2,112,427
Total liabilities and stockholders’ equity	$	15,414,130		$	15,153,655		$	16,151,495

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS
(Unaudited)
(Dollars in thousands)

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Assets
Cash and due from banks	$	154,785		$	154,328		$	162,724		$	154,557		$	162,387
Interest-earning balances due from Federal Reserve		331,956			161,432			704,023			247,165			568,722
Total cash and cash equivalents		486,741			315,760			866,747			401,722			731,109
Interest-earning balances due from depository institutions		5,973			957			12,893			3,479			11,786
Investment securities available-for-sale		2,505,601			2,539,211			2,764,096			2,522,313			2,832,097
Investment securities held-to-maturity		2,341,814			2,369,507			2,442,863			2,355,584			2,450,237
Total investment securities		4,847,415			4,908,718			5,206,959			4,877,897			5,282,334
Investment in stock of FHLB		18,012			18,012			18,012			18,012			18,012
Loans and lease finance receivables		8,354,898			8,467,465			8,731,587			8,410,871			8,778,083
Allowance for credit losses		(78,259	)		(80,113	)		(82,815	)		(79,181	)		(84,283	)
Net loans and lease finance receivables		8,276,639			8,387,352			8,648,772			8,331,690			8,693,800
Premises and equipment, net		26,982			27,408			43,624			27,194			44,002
Bank owned life insurance (BOLI)		319,582			316,643			312,645			318,121			311,127
Intangibles		8,232			9,518			13,258			8,872			13,922
Goodwill		765,822			765,822			765,822			765,822			765,822
Other assets		427,776			419,116			390,834			423,469			370,575
Total assets	$	15,183,174		$	15,169,306		$	16,279,566		$	15,176,278		$	16,242,489
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	7,051,702		$	7,006,357		$	7,153,315		$	7,029,156		$	7,168,016
Interest-bearing		4,755,828			4,866,318			4,728,864			4,810,767			4,591,500
Total deposits		11,807,530			11,872,675			11,882,179			11,839,923			11,759,516
Customer repurchase agreements		376,629			317,322			287,128			347,140			298,200
Other borrowings		508,159			513,078			1,850,330			510,605			1,921,154
Other liabilities		252,908			239,283			157,463			246,132			162,953
Total liabilities		12,945,226			12,942,358			14,177,100			12,943,800			14,141,823
Stockholders’ Equity
Stockholders’ equity		2,518,282			2,523,923			2,456,945			2,521,086			2,444,510
Accumulated other comprehensive loss, net of tax		(280,334	)		(296,975	)		(354,479	)		(288,608	)		(343,844	)
Total stockholders’ equity		2,237,948			2,226,948			2,102,466			2,232,478			2,100,666
Total liabilities and stockholders’ equity	$	15,183,174		$	15,169,306		$	16,279,566		$	15,176,278		$	16,242,489

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Dollars in thousands, except per share amounts)

	Three Months Ended								Six Months Ended
	June 30, 2025		March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Interest income:
Loans and leases, including fees	$	108,845	$	109,071		$	114,200		$	217,916		$	230,549
Investment securities:
Investment securities available-for-sale		18,299		18,734			21,225			37,033			42,671
Investment securities held-to-maturity		12,886		13,021			13,445			25,907			26,847
Total investment income		31,185		31,755			34,670			62,940			69,518
Dividends from FHLB stock		411		379			377			790			796
Interest-earning deposits with other institutions		3,768		1,797			9,825			5,565			15,898
Total interest income		144,209		143,002			159,072			287,211			316,761
Interest expense:
Deposits		24,829		25,322			25,979			50,151			47,345
Borrowings and customer repurchase agreements		7,401		6,800			22,244			14,201			46,106
Other		371		436			–			807			–
Total interest expense		32,601		32,558			48,223			65,159			93,451
Net interest income before (recapture of) provision for credit losses		111,608		110,444			110,849			222,052			223,310
(Recapture of) provision for credit losses		–		(2,000	)		–			(2,000	)		–
Net interest income after (recapture of) provision for credit losses		111,608		112,444			110,849			224,052			223,310
Noninterest income:
Service charges on deposit accounts		4,959		4,908			5,117			9,867			10,153
Trust and investment services		3,716		3,411			3,428			7,127			6,652
Gain on OREO, net		6		2,183			–			2,189			–
Other		6,063		5,727			5,879			11,790			11,732
Total noninterest income		14,744		16,229			14,424			30,973			28,537
Noninterest expense:
Salaries and employee benefits		34,999		36,477			35,426			71,476			71,827
Occupancy and equipment		6,106		5,998			5,772			12,104			11,337
Professional services		2,191		2,081			2,726			4,272			4,981
Computer software expense		4,410		4,221			3,949			8,631			7,474
Marketing and promotion		1,817		1,988			1,956			3,805			3,586
Amortization of intangible assets		1,155		1,155			1,437			2,310			2,875
Provision for (recapture of) unfunded loan commitments		–		500			(500	)		500			(500	)
Other		6,879		6,724			5,731			13,603			14,688
Total noninterest expense		57,557		59,144			56,497			116,701			116,268
Earnings before income taxes		68,795		69,529			68,776			138,324			135,579
Income taxes		18,231		18,425			18,741			36,656			36,945
Net earnings	$	50,564	$	51,104		$	50,035		$	101,668		$	98,634

Basic earnings per common share	$	0.36	$	0.37		$	0.36		$	0.72		$	0.71
Diluted earnings per common share	$	0.36	$	0.36		$	0.36		$	0.72		$	0.71
Cash dividends declared per common share	$	0.20	$	0.20		$	0.20		$	0.20		$	0.40

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Interest income – tax equivalent (TE)	$	144,729		$	143,525		$	159,607		$	288,253		$	317,835
Interest expense		32,601			32,558			48,223			65,159			93,451
Net interest income – (TE)	$	112,128		$	110,967		$	111,384		$	223,094		$	224,384

Return on average assets, annualized		1.34	%		1.37	%		1.24	%		1.35	%		1.22	%
Return on average equity, annualized		9.06	%		9.31	%		9.57	%		9.18	%		9.44	%
Efficiency ratio [1]		45.55	%		46.69	%		45.10	%		46.12	%		46.17	%
Noninterest expense to average assets, annualized		1.52	%		1.58	%		1.40	%		1.55	%		1.44	%
Yield on average loans		5.22	%		5.22	%		5.26	%		5.22	%		5.28	%
Yield on average earning assets (TE)		4.28	%		4.28	%		4.37	%		4.28	%		4.36	%
Cost of deposits		0.84	%		0.86	%		0.88	%		0.85	%		0.81	%
Cost of deposits and customer repurchase agreements		0.87	%		0.87	%		0.87	%		0.87	%		0.80	%
Cost of funds		1.03	%		1.04	%		1.38	%		1.03	%		1.34	%
Net interest margin (TE)		3.31	%		3.31	%		3.05	%		3.31	%		3.07	%
[1] Noninterest expense divided by net interest income before provision for credit losses plus noninterest income.

Tangible Common Equity Ratio (TCE) [2]
CVB Financial Corp. Consolidated		10.02	%		10.04	%		8.68	%
Citizens Business Bank		9.86	%		9.92	%		8.57	%
[2] (Capital – [GW+Intangibles])/(Total Assets – [GW+Intangibles])

Weighted average shares outstanding
Basic		139,297,604			138,973,996			138,583,510			139,824,075			138,419,379
Diluted		139,471,147			139,294,401			138,669,058			140,098,174			138,561,481
Dividends declared	$	27,703		$	27,853		$	28,018		$	55,556		$	55,904
Dividend payout ratio [3]		54.79	%		54.50	%		56.00	%		54.64	%		56.68	%
[3] Dividends declared on common stock divided by net earnings.

Number of shares outstanding – (end of period)		137,825,465			139,089,612			139,677,162
Book value per share	$	16.25		$	16.02		$	15.12
Tangible book value per share	$	10.64		$	10.45		$	9.55

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)

	Three Months Ended
	June 30, 2025			December 31, 2024			June 30, 2024
Nonperforming assets:
Nonaccrual loans	$	25,969		$	27,795		$	24,957
Other real estate owned (OREO), net		661			19,303			647
Total nonperforming assets	$	26,630		$	47,098		$	25,604
Loan modifications to borrowers experiencing financial difficulty	$	9,529		$	6,467		$	26,363

Percentage of nonperforming assets to total loans outstanding and OREO		0.32	%		0.55	%		0.29	%
Percentage of nonperforming assets to total assets		0.17	%		0.31	%		0.16	%
Allowance for credit losses to nonperforming assets		292.91	%		170.12	%		323.33	%

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Allowance for credit losses:
Beginning balance	$	78,252		$	80,122		$	82,817		$	80,122		$	86,842
Total charge-offs		(429	)		(40	)		(51	)		(469	)		(4,318	)
Total recoveries on loans previously charged-off		180			170			20			350			262
Net recoveries (charge-offs)		(249	)		130			(31	)		(119	)		(4,056	)
(Recapture of) provision for credit losses		–			(2,000	)		–			(2,000	)		–
Allowance for credit losses at end of period	$	78,003		$	78,252		$	82,786		$	78,003		$	82,786

Net recoveries (charge-offs) to average loans		-0.003	%		0.002	%	-0.000		%		-0.001	%		-0.046	%

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in millions)

Allowance for Credit Losses by Loan Type
	June 30, 2025				December 31, 2024				June 30, 2024
	Allowance For Credit Losses		Allowance as a % of Total Loans by Respective Loan Type		Allowance For Credit Losses		Allowance as a % of Total Loans by Respective Loan Type		Allowance For Credit Losses		Allowance as a % of Total Loans by Respective Loan Type

Commercial real estate	$	64.5		0.99%	$	66.2		1.02%	$	69.4		1.04%
Construction		0.2		1.36%		0.3		1.94%		0.8		1.51%
SBA		3.1		1.13%		2.6		0.96%		2.5		0.93%
Commercial and industrial		6.4		0.70%		6.1		0.66%		5.1		0.53%
Dairy & livestock and agribusiness		2.6		1.09%		3.6		0.86%		3.8		1.08%
Municipal lease finance receivables		0.2		0.35%		0.2		0.31%		0.2		0.26%
SFR mortgage		0.5		0.17%		0.5		0.16%		0.5		0.19%
Consumer and other loans		0.5		1.03%		0.6		1.04%		0.5		1.07%

Total	$	78.0		0.93%	$	80.1		0.94%	$	82.8		0.95%

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)

Quarterly Common Stock Price
	2025					2024						2023
Quarter End	High		Low			High			Low			High			Low
March 31,	$	21.71	$	18.22		$	20.45		$	15.95		$	25.98		$	16.34
June 30,	$	20.15	$	16.01		$	17.91		$	15.71		$	16.89		$	10.66
September 30,	$	–	$	–		$	20.29		$	16.08		$	19.66		$	12.89
December 31,	$	–	$	–		$	24.58		$	17.20		$	21.77		$	14.62

Quarterly Consolidated Statements of Earnings
			Q2			Q1			Q4			Q3			Q2
			2025			2025			2024			2024			2024
Interest income
Loans and leases, including fees			$	108,845		$	109,071		$	110,277		$	114,929		$	114,200
Investment securities and other				35,364			33,931			37,322			50,823			44,872
Total interest income				144,209			143,002			147,599			165,752			159,072
Interest expense
Deposits				24,829			25,322			28,317			29,821			25,979
Borrowings and customer repurchase agreements				7,401			6,800			8,291			22,312			22,244
Other				371			436			573			–			–
Total interest expense				32,601			32,558			37,181			52,133			48,223

Net interest income before (recapture of) provision for credit losses				111,608			110,444			110,418			113,619			110,849
(Recapture of) provision for credit losses				–			(2,000	)		(3,000	)		–			–
Net interest income after (recapture of) provision for credit losses				111,608			112,444			113,418			113,619			110,849

Noninterest income				14,744			16,229			13,103			12,834			14,424
Noninterest expense				57,557			59,144			58,480			58,835			56,497
Earnings before income taxes				68,795			69,529			68,041			67,618			68,776
Income taxes				18,231			18,425			17,183			16,394			18,741
Net earnings			$	50,564		$	51,104		$	50,858		$	51,224		$	50,035

Effective tax rate				26.50	%		26.50	%		25.25	%		24.25	%		27.25	%

Basic earnings per common share			$	0.36		$	0.37		$	0.36		$	0.37		$	0.36
Diluted earnings per common share			$	0.36		$	0.36		$	0.36		$	0.37		$	0.36

Cash dividends declared per common share			$	0.20		$	0.20		$	0.20		$	0.20		$	0.20

Cash dividends declared			$	27,703		$	27,853		$	27,978		$	27,977		$	28,018

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands)

Loan Portfolio by Type
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024

Commercial real estate	$	6,517,415		$	6,490,604		$	6,507,452		$	6,618,637		$	6,664,925
Construction		17,658			15,706			16,082			14,755			52,227
SBA		271,735			271,844			273,013			272,001			267,938
SBA – PPP		85			179			774			1,255			1,757
Commercial and industrial		912,427			942,301			925,178			936,489			956,184
Dairy & livestock and agribusiness		233,772			252,532			419,904			342,445			350,562
Municipal lease finance receivables		63,652			65,203			66,114			67,585			70,889
SFR mortgage		288,435			269,493			269,172			267,181			267,593
Consumer and other loans		53,322			55,770			58,743			52,217			49,771
Gross loans, at amortized cost		8,358,501			8,363,632			8,536,432			8,572,565			8,681,846
Allowance for credit losses		(78,003	)		(78,252	)		(80,122	)		(82,942	)		(82,786	)
Net loans	$	8,280,498		$	8,285,380		$	8,456,310		$	8,489,623		$	8,599,060


Deposit Composition by Type and Customer Repurchase Agreements
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024

Noninterest-bearing	$	7,247,128		$	7,184,267		$	7,037,096		$	7,136,824		$	7,090,095
Investment checking		483,793			533,220			551,305			504,028			515,930
Savings and money market		3,669,912			3,710,612			3,786,387			3,745,707			3,409,320
Time deposits		583,990			561,822			573,593			685,930			774,980
Total deposits		11,984,823			11,989,921			11,948,381			12,072,489			11,790,325

Customer repurchase agreements		404,154			276,163			261,887			394,515			268,826
Total deposits and customer repurchase agreements	$	12,388,977		$	12,266,084		$	12,210,268		$	12,467,004		$	12,059,151

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands)
Nonperforming Assets and Delinquency Trends
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
Nonperforming loans
Commercial real estate	$	24,379		$	24,379		$	25,866		$	18,794		$	21,908
SBA		1,265			1,024			1,529			151			337
Commercial and industrial		265			173			340			2,825			2,712
Dairy & livestock and agribusiness		60			60			60			143			–
Total	$	25,969		$	25,636		$	27,795		$	21,913		$	24,957
% of Total loans		0.31	%		0.31	%		0.33	%		0.26	%		0.29	%

Past due 30-89 days (accruing)
Commercial real estate	$	–		$	–		$	–		$	30,701		$	43
SBA		3,419			718			88			–			–
Commercial and industrial		–			–			399			64			103
Total	$	3,419		$	718		$	487		$	30,765		$	146
% of Total loans		0.04	%		0.01	%		0.01	%		0.36	%		0.00	%

OREO
Commercial real estate	$	661		$	495		$	18,656		$	–		$	–
SFR mortgage		–			–			647			647			647
Total	$	661		$	495		$	19,303		$	647		$	647
Total nonperforming, past due, and OREO	$	30,049		$	26,849		$	47,585		$	53,325		$	25,750
% of Total loans		0.36	%		0.32	%		0.56	%		0.62	%		0.30	%

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)

Regulatory Capital Ratios
	Minimum Required	CVB Financial Corp. Consolidated
Capital Ratios	Plus Capital Conservation Buffer	June 30, 2025	December 31, 2024	June 30, 2024

Tier 1 leverage capital ratio	4.0%	11.8%	11.5%	10.5%
Common equity Tier 1 capital ratio	7.0%	16.5%	16.2%	15.3%
Tier 1 risk-based capital ratio	8.5%	16.5%	16.2%	15.3%
Total risk-based capital ratio	10.5%	17.3%	17.1%	16.1%

Tangible common equity ratio		10.0%	9.8%	8.7%

Tangible Book Value Reconciliations (Non-GAAP)

The tangible book value per share is a Non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. The following is a reconciliation of tangible book value to the Company stockholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share.

	June 30, 2025			December 31, 2024			June 30, 2024
	(Dollars in thousands, except per share amounts)

Stockholders’ equity	$	2,240,322		$	2,186,316		$	2,112,427
Less: Goodwill		(765,822	)		(765,822	)		(765,822	)
Less: Intangible assets		(7,657	)		(9,967	)		(12,416	)
Tangible book value	$	1,466,843		$	1,410,527		$	1,334,189
Common shares issued and outstanding		137,825,465			139,689,686			139,677,162
Tangible book value per share	$	10.64		$	10.10		$	9.55

Return on Average Tangible Common Equity Reconciliations (Non-GAAP)

The return on average tangible common equity is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. The following is a reconciliation of net income, adjusted for tax-effected amortization of intangibles, to net income computed in accordance with GAAP; a reconciliation of average tangible common equity to the Company’s average stockholders’ equity computed in accordance with GAAP; as well as a calculation of return on average tangible common equity.

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2025			2025			2024			2025			2024
	(Dollars in thousands)

Net Income	$	50,564		$	51,104		$	50,035		$	101,668		$	98,634
Add: Amortization of intangible assets		1,155			1,155			1,437			2,310			2,875
Less: Tax effect of amortization of intangible assets (1)		(341	)		(341	)		(425	)		(683	)		(850	)
Tangible net income	$	51,378		$	51,918		$	51,047		$	103,295		$	100,659

Average stockholders’ equity	$	2,237,948		$	2,226,948		$	2,102,466		$	2,232,478		$	2,100,666
Less: Average goodwill		(765,822	)		(765,822	)		(765,822	)		(765,822	)		(765,822	)
Less: Average intangible assets		(8,232	)		(9,518	)		(13,258	)		(8,872	)		(13,922	)
Average tangible common equity	$	1,463,894		$	1,451,608		$	1,323,386		$	1,457,784		$	1,320,922

Return on average equity, annualized (2)		9.06	%		9.31	%		9.57	%		9.18	%		9.44	%
Return on average tangible common equity, annualized (2)		14.08	%		14.51	%		15.51	%		14.29	%		15.32	%

(1) Tax effected at respective statutory rates.
(2) Annualized where applicable.

The MIL Network –

July 24, 2025

MIL-OSI: Gran Tierra Energy Inc. Provides Release Date for its 2025 Second Quarter Results

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, July 23, 2025 (GLOBE NEWSWIRE) — Gran Tierra Energy Inc. (“Gran Tierra” or the “Company”) (NYSE American:GTE)(TSX:GTE)(LSE:GTE) announces that the Company will release its 2025 second quarter financial and operating results on Wednesday July 30, 2025, post-market. Gran Tierra will host its second quarter 2025 results conference call on Thursday, July 31, 2025, at 9:00 a.m. Mountain Time, 11:00 a.m. Eastern Time.

How to Participate in the 2025 Second Quarter Conference Call

Interested parties may register for the 2025 second quarter conference call by clicking on this link. Please note that there is no longer a general dial-in number to participate, and each individual party must register through the link provided. Once parties have registered, they will be provided with a unique PIN and call-in details. There is also a new feature that allows parties to elect to be called back through the “Call Me” function on the platform.

Interested parties can also continue to access the live webcast from their mobile or desktop devices by clicking on this link, which is also available on Gran Tierra’s website at https://www.grantierra.com/investor-relations/presentations-events/. An audio replay of the conference call will be available at the same webcast link for two hours following the call and will be available until July 31, 2026.

Contact Information

For investor and media inquiries please contact:

Gary Guidry
President & Chief Executive Officer

Ryan Ellson
Executive Vice President & Chief Financial Officer
+1-403-265-3221
info@grantierra.com

About Gran Tierra Energy Inc.

Gran Tierra Energy Inc. together with its subsidiaries is an independent international energy company currently focused on oil and natural gas exploration and production in Canada, Colombia and Ecuador. The Company is currently developing its existing portfolio of assets in Canada, Colombia and Ecuador and will continue to pursue additional new growth opportunities that would further strengthen the Company’s portfolio. The Company’s common stock trades on the NYSE American, the Toronto Stock Exchange and the London Stock Exchange under the ticker symbol GTE. Additional information concerning Gran Tierra is available at www.grantierra.com. Except to the extent expressly stated otherwise, information on the Company’s website or accessible from our website or any other website is not incorporated by reference into and should not be considered part of this press release. Investor inquiries may be directed to info@grantierra.com or (403) 265-3221.

Gran Tierra’s Securities and Exchange Commission (the “SEC”) filings are available on the SEC website at http://www.sec.gov. The Company’s Canadian securities regulatory filings are available on SEDAR+ at http://www.sedarplus.ca and UK regulatory filings are available on the National Storage Mechanism website at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

The MIL Network –

July 24, 2025

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

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

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

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

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

Boosting global co-operation

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

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

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

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

Urgent human development needs

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

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

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

Scant commitment to action

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

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

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

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

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

Poverty and inequality worsens

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

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

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

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

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

Directing money to where it’s needed most

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

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

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

Supporting green, equitable development

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

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

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

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

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

MIL OSI Analysis –

July 24, 2025

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

Source: US State Government of Utah

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

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

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

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

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

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

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

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

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

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

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

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

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

MIL OSI USA News –

July 24, 2025

MIL-OSI Security: FBI Chicago Announces 2025 Recipient of Director’s Community Leadership Award

Source: US FBI

DCLA recipient Reverend Dr. Donovan E. Price Sr. and FBI Chicago Special Agent in Charge Douglas S. DePodesta

The Chicago Division of the Federal Bureau of Investigation (FBI) announced today that Reverend Dr. Donovan E. Price Sr., Th.D., has been named the recipient of the division’s Director’s Community Leadership Award (DCLA).

Established in 1990, the DCLA honors individuals and organizations for their efforts in preventing federal crimes and enhancing law enforcement efforts in their communities. This award is given annually to recipients in each of the FBI’s 55 field offices.

“The FBI is proud to recognize Rev. Dr. Price, who has selflessly stepped in to help others in their greatest hour of need since 2016,” said Special Agent in Charge Douglas S. DePodesta. “DCLA recipients exemplify the FBI’s commitment of working toward justice in its many forms and protecting society’s most vulnerable members. Rev. Dr. Price’s work across Chicago illustrates the critical nature of local partnerships and the importance of working shoulder-to-shoulder to serve and protect our great communities.”

Rev. Dr. Price is the founder and executive director of Solutions & Resources, Inc./Street Pastors Chicago, a Chicago-based non-profit focused on providing comprehensive support to individuals affected by violence, particularly through victim advocacy and crisis intervention work. He leads a ministry that assists families and victims of violence with a holistic approach to healing. He assists families in finding resources for the funeral and, in most cases, conducts the funeral. In further assistance to the family and community, his organization helps in providing social services, resources, and, most importantly, an example of love and respect to the family that they can hold on to for the rest of their lives. Rev. Dr. Price is a member of FBI Chicago’s Community Engagement Council and a 2021 Citizens Academy graduate.

MIL Security OSI –

July 24, 2025

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

Source: United States Attorneys General 1