Category: housing

MIL-OSI USA: Michigan Receives Disaster Declaration from President Trump for Northern Michigan Ice Storm Recovery Efforts

Source: United States House of Representatives – Congressman Jack Bergman (MI-1)

Today, Rep. Jack Bergman joined Governor Gretchen Whitmer announcing that President Donald Trump has approved Michigan’s request for a disaster declaration to help communities impacted by the historic ice storm in Northern Michigan earlier this year. The devastating storm knocked out power and communications and left hundreds of miles of roads blocked by fallen trees and debris.

“President Trump’s approval of a Major Disaster Declaration for the counties impacted by March’s devastating ice storm is welcome news,” said U.S. Representative Jack Bergman. “I’m grateful to his Administration for working to get this done. This long-awaited decision unlocks critical resources to help our communities recover and rebuild as quickly as possible. It’s been a true team effort – from local agencies to state and federal partners. Northern Michigan is no stranger to tough times – but it’s in moments like these, when our communities rally and move forward together, that the true spirit of Northern Michigan shines brightest.”

“Yesterday, I spoke to President Trump who confirmed that communities in Northern Michigan impacted by the historic ice storm damage earlier thisnyear will start to receive federal disaster funding,” said Governor Whitmer. “With this initial support, we can help communities recover costs associated with cleanup efforts. I want to thank the president and our congressional delegation for supporting our request, and I look forward to collaborating further on much-needed additional resources. Michiganders across the state stepped up to help our neighbors, and while other parts of our request remain under review, we will continue advocating together to help Northern Michigan recover and rebuild.”

“Many Northern Michigan individuals, families, and small businesses are still recovering from the historic ice storms that hit our state earlier this year,” said Lt. Governor Garlin Gilchrist II. “This federal emergency declaration will help local leaders, communities, and Northern Michigan families get back on their feet and move forward with their lives. While this storm was devastating, Michiganders are strong, and we will Stand Tall together.”

“I’m pleased that funding is coming to Northern Michigan to bolster the ongoing recovery efforts following the ice storm this March,” said U.S. Senator Gary Peters. “The State of Michigan and local emergency managers continue to work hard because this job is not finished, and I’ll keep fighting to help our communities get the resources they need to bounce back stronger.”

“The Michigan State Police has supported response efforts from the moment this storm began, coordinating statewide resources through the State Emergency Operations Center to assist local communities impacted by the storm,” said Col. James F. Grady II, director of the MSP. “This federal declaration is a crucial next step. It allows us to continue supporting our partners through long-term recovery.”

Federal Disaster Declaration

The declaration opens the path to Federal Emergency Management Agency (FEMA) Public Assistance in Alcona, Alpena, Antrim, Charlevoix, Cheboygan, Crawford, Emmet, Kalkaska, Mackinac, Montmorency, Oscoda, Otsego, and Presque Isle Counties and the Little Traverse Bay Bands of Odawa Indians. The administration continues to review the request for Individual Assistance and Public Assistance under Schedule F.

Advocating for Northern Michigan

On June 25th, Rep. Jack Bergman led a letter with the entire Michigan Congressional Delegation, urging President Donald J. Trump in the strongest possible terms,to approve Governor Whitmer’s May 16 request for a Major Disaster Declaration.

On May 30th, Rep. Jack Bergman joined Michigan USDA Farm Service Agency (FSA) Director Joel Johnson to announce that assistance through the Emergency Conservation Program (ECP) and Emergency Forest Restoration Program (EFRP) is on the way for Northern Michigan. Both programs are designed to help landowners recover from severe storm damage and restore their operations.

On May 19th, Rep. Jack Bergman expressed his full support for Governor Gretchen Whitmer’s request for a Presidential Major Disaster Declaration in response to the ice storm that struck Northern Michigan and the Upper Peninsula in March.

On April 5th, Rep. Bergman visited the affected counties and met with local emergency leaders, linemen, and first responders to discuss the needs across the region.

State Actions

On March 31, Governor Whitmer declared a state of emergency to respond to the storm’s impact. The declaration initially covered 10 counties and was expanded to include 12 counties: Alcona, Alpena, Antrim, Charlevoix, Cheboygan, Crawford, Emmet, Mackinac, Montmorency, Oscoda, Otsego, and Presque Isle counties. Governor Whitmer also deployed the Michigan National Guard to provide more personnel and specialized equipment to help with ice storm recovery efforts in northern Michigan. Lastly, the Governor Whitmer declared an energy emergency in the Upper Peninsula to help expedite delivery of fuel and other critical supplies to impacted areas.

On May 16, Governor Whitmer submitted a formal request for a major disaster declaration to help Northern Michigan recover and rebuild from the historic ice storms that hit the region hard in late March. The governor also traveled to the White House to meet with President Trump, advocating for federal assistance for Northern Michigan. The governor previously asked for an Emergency Declaration, which would authorize up to $5 million in immediate public assistance to support emergency efforts, including debris management needs.

She will continue working with the administration to pursue further relief from FEMA, and her request for individual assistance (IA) remains under review by the federal administration. IA can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of the disaster. She will also seek resources for hazard mitigation measures statewide.

Resources

Residents and business owners who sustained losses in the designated areas can begin applying for assistance at www.DisasterAssistance.gov, by calling 800-621-FEMA (3362), or by using the FEMA App. Anyone using a relay service, such as video relay service (VRS), captioned telephone service or others, can give FEMA the number for that service.

On June 11, the U.S. Small Business Administration (SBA) separately granted an administrative disaster declaration for Cheboygan County and the contiguous counties of Charlevoix, Emmet, Mackinac, Montmorency, Otsego, and Presque Isle. SBA established two Disaster Loan Outreach Centers for one-on-one assistance, open now through July 26 at 2:00pm:

229 Court St.

Cheboygan, MI 49721

8288 S. Pleasantview Rd.

Harbor Springs, MI 49740

Loan applications are also available online or by mail. For additional information on low-interest SBA loans or the application process, visit the MySBA Loan Portal or call 1-800-659-2955. The physical loan application deadline is Aug. 8. Small businesses and non-profits have until March 9, 2026, to apply for EIDLs (working capital loans). So far SBA has disbursed $572,322 in loans for this disaster.

MIL-OSI USA: VIDEO: Senator Peters Advocates for Policies to Support Truck Drivers, Safer Roads in Michigan

US Senate News:

Source: United States Senator for Michigan Gary Peters
WASHINGTON, DC – During a hearing in the Senate Commerce Subcommittee on Surface Transportation, Freight, Pipelines, and Safety, U.S. Senator Gary Peters (MI) advocated for Michigan’s truck drivers, which make up roughly 1 in 15 jobs throughout the state, according to the Michigan Trucking Association. As Ranking Member of the Subcommittee, Peters delivered opening remarks where he underscored his commitment to ensuring Michigan truck drivers receive the wages and benefits they deserve.
“Our nation’s truck drivers are the backbone of our economy. These frontline workers spend long hours, often away from their families and at all times of day and night, transporting goods across the country to America’s communities… It’s not an exaggeration to say that the trucking industry touches every American’s daily life,” said Senator Peters, Ranking Member of the Senate Commerce Subcommittee on Surface Transportation, Freight, Pipelines, and Safety. “That’s especially true for Americans who have made trucking their career. There are nearly 250,000 trucking jobs in Michigan alone, making up 1 in 15 jobs throughout my state. From long and short-haul drivers, to mechanics, dispatchers, and logistics coordinators, these jobs provide key economic opportunities for Michiganders, and I am committed to making sure that these jobs live up to their promise for Michiganders by providing fair wages, health care, and retirement benefits. That’s why I am proud to have one of the foremost leaders of that fight here to testify today, Teamsters President Sean O’Brien.”
During the hearing, Peters also advocated for policies to improve roadway safety to protect both truckers and the drivers they share the road with.
“Mr. O’Brien and the members of this panel know very well that the single most important factor in the success of our truck drivers and this industry, as well as road users across this country, is safety,” Peters continued. “I believe this committee must prioritize safety in the next surface transportation reauthorization bill for both truckers and those they share the road with, from the deployment of advanced safety technology and driver assistance systems, to investing in safer streets and stronger bridges, to tackling truck parking issues and defending drivers’ access to rest and bathrooms, to addressing freight fraud and theft.”
Peters also highlighted the current challenges that truck drivers and businesses face as the industry navigates the Trump Administration’s tariff policies.
“I want to acknowledge that today’s trucking industry, as well as all freight and multimodal industries, is facing an incredibly challenging economic environment with this Administration’s chaotic approach to tariffs. This doesn’t just impact truckers and consumers, changing rules, rising prices, and economic uncertainty impacts the manufacturers that build the trucks that move our goods and keep drivers safe,” said Peters. “In Michigan, the commercial vehicle manufacturing supply chain relies on cross border trade with Canada, and with a global supply chain. Many of these businesses have been forced to consider laying off workers or pausing investments due to a lack of certainty created by constantly shifting tariff policies.”
“We can and should pursue policies to create commercial trucking manufacturing jobs here at home, but this continued chaos will only serve to harm U.S. manufacturers, consumers, and our intermodal freight system,” Peters continued.

To watch video of Senator Peters’ opening remarks and question at the hearing, click here.
Peters has consistently advocated for investments and legislation to support truckers and the trucking industry. In the bipartisan infrastructure law, Peters secured more than $4.6 billion to improve roads, bridges, and highways throughout Michigan, including over $1.8 million for the improvement of the Blue Water Bridge to reduce freight delays and ensure the efficient movement of goods across the bridge via truck. In 2024, Peters’ bipartisan Strengthening the Commercial Driver’s License Information System (CDLIS) Act was signed into law to protect funding for the Commercial Driver’s License Information System (CDLIS), a crucial, nationwide computer system that ensures commercial drivers have only one license and one complete driver record.

MIL-OSI United Kingdom: expert reaction to two papers assessing off-the-shelf health tests sold in UK shops

Source: United Kingdom – Executive Government & Departments

July 23, 2025

A study published in The BMJ assesses direct-to-consumer self-tests sold in the UK.

Prof Amitava Banerjee, Professor of Clinical Data Science and Honorary Consultant Cardiologist, Institute of Health Informatics, UCL, said:

“Direct-to-consumer, self-tests are increasingly used by people with and without disease for screening and are widely available from high street vendors. In these rigorous, real-world studies led by the University of Birmingham, we see two main findings. First, across 30 self-tests in 19 conditions from infertility and menopause to raised cholesterol and anaemia, there is a not enough information for consumers to judge when and why to do the test, and how to interpret or how to act on the results. Second, the evidence and the support from clinical guidelines to use these tests is often lacking, suggesting that regulatory oversight needs to be improved.

“Sometimes people use self-tests because they “feel it is better to know” and they are trying to inform their health and healthcare decisions. This research shows that these self-tests are often not providing relevant knowledge or information and they are not informing decisions in the right way. Therefore, all stakeholders need to consider the quality of self-tests and information available to members of the public or health professionals before recommending their use, whether in the health and wellness space or in diagnosis, treatment and prevention of disease.”

Rachel Richardson, Acting Head of Methods Support, Evidence Production and Methods Directorate, The Cochrane Collaboration, said:

“This well-conducted research shines a welcome light on an area of healthcare which appears to be inadequately regulated.”

Prof Kevin McConway, Emeritus Professor of Applied Statistics, The Open University, said:

“I think the findings of these new studies on self-tests for health conditions, available (at a cost) in supermarkets, high street chemists and online, are scary and concerning. I don’t doubt the findings of the researchers, that many of the available tests don’t make it clear who could make good use of them, how accurate the results might be, or what someone should do in the light of their results.

“These are good studies in my view. The researchers do list some limitations in the discussion sections of the papers, in particular that their samples of tests were obtained two years ago and were not specifically intended to be a sample of what was available across the country, but given what they do say about where they got the tests, I’d be surprised if they aren’t pretty much the same anywhere nowadays. Also, the researchers didn’t check with representatives of the public whether the instructions were as unhelpful to understanding as they believe they were, but I don’t think this affects their conclusions.

“I’m certainly not saying that tests like this should be banned, or even radically discouraged. The authors of these research papers aren’t saying that either. Experience during the heights of the Covid pandemic showed how useful home testing could be, particularly when access to other information about one’s health might not be easily available (as can still be the case at some GP practices, for instance). And, generally as a default position, I don’t like telling people they can’t do something that they want to do – though only in the light of clear, transparent and easily available information on the pros and cons, and in the presence of adequate regulation. These studies make it clear that users of many self-tests aren’t given easy access to relevant information, and that the regulation isn’t appropriate at present.

“I’ll just mention one particular aspect, because it’s one that I have studied and written about myself. This is about why the findings are important, not about the quality of the research. No diagnostic or screening test for a health condition can be 100% accurate. There will inevitably be false positives – people with a positive test result for the condition who actually don’t have the condition – and false negatives – people with a negative test result for a condition who actually do have the condition. These are aspects of accuracy, though discussions of that word don’t always make it clear enough that there are two different ways in which a test result can be wrong.

“You probably recall some of the interest and media discussion about these things in relation to Covid testing. Not all of the discussion was logical or well argued, but it clearly and correctly drew attention to the fact that test results can be wrong sometimes.

“Fewer than half of the self-tests examined by the researchers gave any information at all on the box about accuracy of the results. Even when they did give information about accuracy on the box or in the instructions inside, the information was sometimes itself not accurate, or was based on the results of laboratory studies under careful conditions, not on findings on use of the tests by people who are not health professionals.

“But even if all the tests had given information about accuracy, and all that information was reliable, there can still be problems. I’ll describe how.

“Because there are two kinds of wrong results from tests – false positives and false negatives – we need to look at two aspects of the chance of making an error. One common way of doing this, that was used in some of the self-test instructions, is as follows. Findings from the development and use of the test can estimate the probability that someone, who is known to have the health condition in question, will have a true positive test result rather than a false negative result. (In the jargon, that probability is called the test sensitivity – but trust me, knowing the jargon doesn’t help understanding.) Another finding from test development and use is an estimate of the chance that a person, who is known not to have the condition on question, will have a true negative test result rather than a false positive result. (That’s called the test specificity.)

“The trouble is that these two probabilities are the probability of the person having a positive or a negative test result, in the position where we know whether they really have the health condition. But you don’t do these tests if you know already whether you have the health condition. So these probabilities are the wrong way round. What people (and health professionals) want to know is, for example, if we know someone has a positive test result, what’s the chance that they really have the health condition that is being tested for. Or, if we know someone has a negative test result, what’s the chance that they really don’t have the health condition? (There are jargon names for those too – the positive predictive value and the negative predictive value, but again I don’t think those names help much, as there’s too much risk of confusion.) And I’m sure that’s the kind of thing someone would want to know if they buy a self-test and see what result it gives for them.

“However, the first lot of probabilities, the sensitivity and specificity, are different from the second lot, the predictive values. If I tell you that the chance that a person, known already to have the health condition, will have positive test result is 98%, that doesn’t tell you what the chance is that a person, who has a positive test result, actually has the health condition. That second probability is almost certainly not 98%, and in many circumstances it would be very much less than 98%. To get from one set of probabilities to the other, you would need more information, such as how likely it is that the person has the condition if we don’t yet know the test result.

“Just to rub in that these two probabilities aren’t the same, consider the following silly story. You find a man in the street in London. You happen to know he is the Pope. What’s the chance that he is a Roman Catholic? Obviously, 100%. But now suppose the thing you know ,and the thing you want to know the chance of, are the other way round. You know, somehow, that a different man in the London street is a Roman Catholic. What’s the chance that he is the Pope? Well, very much less than 100%. It matters, a lot, which thing you already know and which thing you want the probability for.

“So, in testing you get different probabilities if you know whether the person being tested has the health conditions, and want the probability that the test will be positive, from if you know what the person’s test result is, and want the probability that they have the health condition. And only one of these probabilities – the second one – tells you what a test result is really saying about the chance of having the health condition.

“There has been a lot of research in the past on how people, including health professionals and also non-professionals that might buy one of these self-tests, understand the findings, when they are given some information about the probabilities. Several studies, for instance, found that many doctors and health professionals weren’t using the information on probabilities when the person’s health status is already known (the sensitivity and specificity) properly in trying to answer the question of how likely it is that someone, with a positive test result, actually has the health condition. And if doctors might not be getting it right, how could a non-expert be expected to interpret their own test results properly?

“The position on that maybe isn’t as grim as it sounds, though. Other research has indicated that there are ways of getting the information across so that it’s useable by non-experts. That has been done by several groups, including the Winton Centre for Risk and Evidence Communication in Cambridge (which has now closed, though its findings are still available), groups led by the psychologist Gerd Gigerenzer in Berlin, and many others. Somehow, those communication findings need to be incorporated, as well as they can be, in the instructions for these tests. But that will require more and better regulation.

“Also, some doctors in primary health, including Jessica Watson and Margaret McCartney, who wrote the editorial accompanying these two new research papers in the BMJ, have worked on ways of helping people to understand test results – though you’d need to ask them how much of their findings could transfer easily to something that could be written clearly in test instructions rather than used in direct communication between health professionals and patients.”

Paper 1: ‘Direct-to-consumer self-tests sold in the UK in 2023: cross sectional review of information on intended use, instructions for use, and post-test decision making’ by Clare Davenport et al. was published in the BMJ at 23:30 UK time on Wednesday 23 July 2025.

DOI: 10.1136/bmj-2025-085546

Paper 2: ‘Direct-to-consumer self-tests sold in the UK in 2023: cross sectional review of regulation and evidence of performance’ by Bethany Hillier et al. was published in the BMJ at 23:30 UK time on Wednesday 23 July 2025.

DOI: 10.1136/bmj-2025-085547

Declared interests

Prof Amitava Banerjee: “AB declares no relevant conflicts of interest.”

Prof Kevin McConway: “I have no conflicts of interest to declare.”

Rachel Richardson: “I have no interests to declare.”

This Roundup was accompanied by an SMC Briefing.

MIL OSI United Kingdom –

MIL-OSI USA: Case Introduces Proposal To Expand Indigenous-Based Tourism

Source: United States House of Representatives – Congressman Ed Case (Hawai‘i – District 1)

(Washington, DC) — U.S. Representative Ed Case (D-Hawai‘i-First District) has introduced proposed legislation in the U.S. House to authorize federal grants to Indian Tribes, Tribal organizations, Native Alaskans and Native Hawaiian organizations for fostering indigenous history and culture-based travel and tourism.

“This measure is especially important for my home state of Hawai‘i, where the link between tourism and our indigenous peoples, Native Hawaiians, is essential”, said Case. “Native Hawaiian history and culture is at the heart of our islands’ uniqueness. It is one of the major draws for our visitors, and activities based on our indigenous history and culture should be developed by Native Hawaiians wherever and however possible.”

Case said his measure is the House companion to S. 612, introduced by Senators Lisa Murkowski, Chair of the Senate Indian Affairs Committee, and Brian Schatz, Vice Chairman of the Committee. The bill makes important corrections to the NATIVE Act to authorize grants to Indian Tribes, Tribal organizations, Native Alaskans and Native Hawaiian organizations for recreational travel and tourism activities.

Case said that Congress enacted the NATIVE Act in 2016 to provide grants, loans and technical assistance to Indian Tribes, Tribal organizations, Native Alaskans and Native Hawaiian organizations to assist in developing tourism in indigenous peoples communities and enhancing opportunities for visitors to learn about indigenous peoples’ history, cultures, traditional foods, languages and arts. He said unfortunately, the act did not clearly authorize the federal Bureau of Indian Affairs (BIA) or the Office of Native Hawaiian Relations (ONHR) to issue the grants, which led to implementation challenges.

“Our bill corrects this oversight by clearly authorizing the BIA and ONHR, along with several other federal agencies, to issue these grants and authorize appropriations for the program,” said Case. “The bill will enable improved access to federal resources, helping these communities build sustainable tourism infrastructure and expand cultural tourism. In turn, it will foster a broader appreciation of indigenous peoples and create jobs and boost economic development in rural and underserved areas.”

Case continued: “The past generations have witnessed a great renaissance of the Hawaiian language and culture, and in turn over the ensuing years Native Hawaiian practitioners and culture have become an increasingly visible and central part of our visitor industry. We in Hawai‘i are committed to fostering this sector of our economy in a way that encourages long-term cultural preservation efforts.

“Through improving the implementation of the NATIVE Act, which has helped both Native Hawaiian Organizations and local Native Hawaiian businesses, our federal government will do a better job preserving and promoting Native Hawaiian culture.

“We can help connect tourists with the rich indigenous heritage of Hawai‘i though community-based visitor experiences that protect cultural sites, promote education and create jobs.”

1. Link to measure is here

2. Link to Case remarks on the measure is here

###

MIL-OSI USA: Ernst Pushes to Safeguard American Innovation From China

US Senate News:

Source: United States Senator Joni Ernst (R-IA)

WASHINGTON – After releasing a bombshell report detailing how critical technology is vulnerable to espionage by the Chinese Communist Party, Senate Small Business and Entrepreneurship Committee Chair Joni Ernst (R-Iowa) detailed why Congress must pass her INNOVATE Act to protect and advance American innovation.
Ernst laid out how her bill to reauthorize the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs would cut red tape, ensure that funding goes to truly small businesses and startups, and strengthen protections against China’s attempts to steal taxpayer-funded intellectual property.

Watch Senator Ernst’s full remark here.
Ernst’s full remarks:
“Today’s hearing comes at a pivotal moment.
“America has consistently been at the forefront of technological innovation.
“Nonetheless, our adversaries — especially China — are working overtime to undermine us.
“Over the past 100 years, the United States of America has catalyzed the world’s most consequential technology breakthroughs.
“From putting mankind on the moon, to unlocking a whole new digital frontier, Americans didn’t just invent. We built.
“We turned those big dreams into real-world breakthroughs, securing a long and prosperous period of economic might and global leadership.
“But after a century of wins, we cannot become complacent.
“Over the past 20 years, those in power in Washington have looked the other way as China initiated a comprehensive industrial espionage strategy.
“They’re not hiding it either. The Chinese Communist Party, through its Made in China 2025 plan, has made crystal clear its goal to eliminate U.S. technological leadership in critical industries.
“We need to be more clear-eyed, folks. China desires nothing more than to surpass the United States technologically and militarily.
“They want to impose their authoritarian ideology on the world and destroy the West.
“If we want any shot at preserving America’s leadership and warfighting capabilities, we have to lock down our innovation pipeline.
“The truth is, America has left its door wide open, effectively inviting our adversaries to take advantage.
“As a result, sensitive industries have become vulnerable to exploitation, allowing countries like China to use well-known techniques— including talent recruitment programs— to steal our innovations.
“The CCP forces innovators across our vibrant startup economy to hand over trade secrets and intellectual property as a cost of doing business.
“They invest in American firms, not to help, but to scheme, snoop, and steal.
“The United States Trade Representative and FBI estimate intellectual property theft by China costs our economy between $225-600 billion per year.
“The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are no exception.
“In 2021, the Pentagon first sounded the alarm, revealing the pervasive exploitation of the SBIR program by foreign bad actors and recommended a foreign ties due diligence review process for applicants.
“That’s why, through the SBIR STTR Extension Act of 2022, I fought to establish a framework to identify the extent of foreign risk, vet each company coming through the doors, and stop awarding awards to malicious actors.
“It was a strong start, but it isn’t enough. Congress must take further action to secure the critical technologies being cultivated in these programs.
“In fact, my recent report on this subject showed that 64 percent of applications flagged for foreign risk were still eligible to receive taxpayer dollars. That’s unacceptable. I ask unanimous consent to enter this report into the record.
“We cannot afford to keep investing taxpayer dollars to develop and deploy our best homegrown technologies, while failing to safeguard them against theft by our adversaries.
“This is why earlier this year I introduced the INNOVATE Act.
“It would tighten our defenses, standardizing foreign ties due diligence in SBIR across participating agencies and giving agencies more muscle to claw back award dollars when our national security is threatened. It’s just common sense.
“Let me be clear, this is only a first step. The disturbing reality is that China is already conducting economic warfare in our homeland by targeting our farmland and critical infrastructure.
“If we want to win the next century and beyond, we must protect our innovators, our intellectual property, and the technologies that will shape our future.
“I am looking forward to hearing from our expert witnesses today on the scale of these threats and response measures for Congress to consider.”

MIL-OSI USA: Statement on the Commission’s Status Report in the Climate-Related Disclosure Rules Litigation

Source: Securities and Exchange Commission

On April 24, 2025—three months ago—the U.S. Court of Appeals for the Eighth Circuit directed the Commission to provide a status update in the ongoing litigation concerning the Climate-Related Disclosure Rules, which the Commission adopted in March of 2024.[1]

The Court “directed” the Commission to advise whether it “intends to review or reconsider the [R]ules at issue in this case.”[2] And, if the Commission has determined to take no action, the Court ordered the Commission to explain whether it “will adhere to the [R]ules if the petitions for review are denied and, if not, why it will not review or reconsider the [R]ules at this time.”[3]

The Court’s directive was straightforward; our answer is not.

The Commission’s Status Report, filed today, states plainly enough that it has no intention of revisiting the Rules at this time.[4] That, however, is where our responsiveness ends.[5] The Status Report goes on to argue that we cannot expound on what the Commission’s future plans might be in the event the rulemaking petitions are denied, because we would be “prejudging” those policy decisions.[6] And, the Status Report explains, any future rulemaking should benefit from a court ruling on our statutory authority.[7]

We also weigh in on a number of questions that the Court did not ask of us – for example, we opine that there are “no obstacle[s]” to reaching the merits of the case and that a “live controversy” remains.[8]

This purported response is wholly unresponsive.

The Court asked us in no uncertain terms “will [the Commission] adhere to the [R]ules if the petitions for review are denied[?]” We did not—but should have—answered that question. The unspoken truth under this Commission is that the answer is “no.” Three of the four current Commissioners have been vocal critics of the Rules.[9] They have also withdrawn the Commission from the defense of the Rules in litigation.[10] The Commission simply does not want to say what we all know to be true by now—it has no intention of allowing the Climate-Related Disclosure Rules to go into effect.

Once we acknowledge this answer, the rest of the Commission’s arguments fall away. There are no prejudgment issues, because there is nothing to prejudge. And, we do not need the Court to rule on our statutory authority for the Commission to engage in rulemaking. If there is future rulemaking in this space—whether to rescind the Rules or otherwise – that rulemaking may present different legal issues. Whatever those issues may be, and whomever those aggrieved parties may be, they are not now before the Court. Federal courts are not in the business of giving advisory opinions to agencies.

What is crystal clear, however, is that this Commission is seeking to avoid its legal obligations under the guise of conserving “Commission time and resources.” No matter what, this comes at the expense of judicial resources. As I wrote previously in connection with the Commission’s decision to stop defending these Rules,[11] the Administrative Procedure Act governs the process by which we make and repeal rules. It includes a prescriptive framework for promulgation and rescission. If this Commission wants to rescind, repeal or modify the Rules, which were promulgated by-the-book, then it must do the statutorily-required work. It cannot take the easy way out. It must engage in notice-and-comment rulemaking, with the benefit of economic analysis and a public, transparent process, even if inconvenient or if the Commission has other, more pressing priorities.[12] Indeed, other Commissioners have acknowledged that doing the work required to rescind the rule would be a difficult lift.[13] So, instead, we once again ask the Court to do the work for us. By asking the Court to carry water that we should shoulder ourselves, we do a grave disservice to our already taxed judicial system. This is not good governance.

The Commission has effectively ignored the Court’s order and thrown the ball back at the Court. The Court should decline to play these games.

[2] Status Update Order.

[4] Status Report of the Securities and Exchange Commission in Response to the Court’s April 24, 2025 Order, State of Iowa v. Securities and Exchange Commission, 24-cv-1522 (8th Cir. July 23, 2025) (“Status Report”) at 2 (“The Commission does not intend to review or reconsider the Rules at this time.”).

[5] These viewpoints do not reflect upon the efforts of the staff in our Office of the General Counsel.

[6] Status Report at 2.

[7] Id. at 2, 4, 5.

[8] Id. at 2, 3.

[10] See Status Report filed by SEC, State of Iowa v. Securities and Exchange Commission, 24-cv-1522 (8th Cir. Mar. 27, 2025); SEC Press Release No. 2025-58, SEC Votes to End Defense of Climate Disclosure Rules (Mar. 27, 2025) (According to then-Acting Chair Uyeda, “The goal of today’s Commission action and notification to the court is to cease the Commission’s involvement in the defense of the costly and unnecessarily intrusive climate change disclosure rules.”).

[12] Commissioner Mark T. Uyeda, Remarks at the “SEC Speaks” Conference 2025 (May 19, 2025) (“For the Commission to rescind the climate-related disclosure rule—and address the countless factual findings discussed in that 885-page release—would place a significant strain on the Commission’s resources. This effort would be a difficult lift, and it would potentially take away staff resources needed to advance the regulatory regime with respect to crypto and capital formation.”).

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: July 23rd, 2025 N.M. Delegation Announces President’s Approval of Major Disaster Declaration for Lincoln County, Maintains Push for Major Disaster Declaration for Chaves, Otero, & Valencia Counties

US Senate News:

Source: United States Senator for New Mexico Martin Heinrich

WASHINGTON — U.S. Senators Martin Heinrich (D-N.M.) and Ben Ray Luján (D-N.M.) and U.S. Representatives Teresa Leger Fernández (D-N.M.), Melanie Stansbury (D-N.M.), and Gabe Vasquez (D-N.M.) released the following joint statement, welcoming President Donald Trump’s granting of a Major Disaster Declaration for Lincoln County, while renewing their call for President Trump to grant a Major Disaster Declaration for Chaves, Otero, and Valencia Counties and authorize Public Assistance Categories C-G in the wake of severe flooding that took the lives of three people and damaged homes, businesses, and critical infrastructure.

“The loss of life and devastation in Ruidoso as a result of this catastrophic flooding is horrific and heartbreaking. After seeing the destruction firsthand and hearing from families who have lost everything, our thoughts remain with those mourning loved ones and the hundreds of New Mexicans forced to flee their homes or watch their businesses be destroyed. We are deeply grateful to the first responders, local leaders, medical providers, and rescue teams working tirelessly to help their communities recover.

“This Major Disaster Declaration for Lincoln County will unlock funding needed for disaster response, and we will continue to push President Trump to grant the State’s Major Disaster Declaration request for Chaves, Otero, and Valencia Counties and authorize additional Public Assistance to make sure that all New Mexicans impacted by this disaster are provided with the federal support necessary to rebuild.”

On July 10, the N.M. Delegation welcomed an emergency declaration for Chaves, Lincoln, Otero, and Valencia Counties. The emergency declaration opened up access to specific FEMA funds for immediate disaster response, including support for search and rescue and incident management efforts. An emergency declaration does not preclude a subsequent Major Disaster Declaration. Therefore, the N.M. Delegation pushed President Trump to approve a Major Disaster Declaration request from Governor Michelle Lujan Grisham.

Through a Major Disaster Declaration request, the State of New Mexico has requested Public Assistance, Category A through G, including Direct Federal Assistance for Lincoln County, Chaves County, Otero County, and Valencia County, as well as Individual Assistance, including Housing Assistance, Small Business Administration Disaster Assistance, Disaster Case Management, Transitional Sheltering Assistance, Serious Needs Assistance, Crisis Counseling, Disaster Legal Services, Disaster Unemployment, and Displacement Assistance for Lincoln County and Valencia County. The State also requested Hazard Mitigation statewide, as facilitated by New Mexico’s Natural Disaster Hazard Mitigation Plan.

The N.M. Delegation will continue to push President Trump to authorize Public Assistance Categories C-G and approve a Major Disaster Declaration request for Chaves, Otero, and Valencia Counties from Governor Michelle Lujan Grisham.

Additionally, on July 15, the N.M. Delegation called on the Office of Management and Budget (OMB) Director Russ Vought and Federal Emergency Management Agency (FEMA) Acting Director David Richardson to disburse critical and overdue funds that would provide immediate assistance in response to the catastrophic flash flooding in and around Ruidoso.

In a letter to OMB Director Vought and FEMA Acting Director Richardson, the Delegation urged OMB to release reimbursement funds from a project undertaken in the wake of last year’s South Fork and Salt Fires — currently stalled in “Large Project Review” — so they can be redirected to Lincoln County after recent severe flooding. The project in question was completed last year, has been fully reviewed by FEMA, and has an estimated cost of $7.7 million. These funds could be deployed immediately to assist Lincoln County and impacted residents as they continue to assess and respond to the recent severe flooding. But with no timeline provided to Lincoln County or the New Mexico Department of Homeland Security and Emergency Management (DHSEM) for completing the “Large Project Review” by the Administration, the Delegations is demanding answers. Read the full letter here.

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

US Senate News:

Source: United States Senator for Iowa Chuck Grassley

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

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

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

The Art Market Integrity Act would:

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

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

Download the full bill text HERE.

Background:

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

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

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

Translation. Region: Russian Federal

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

An important disclaimer is at the bottom of this article.

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

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

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

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

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

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

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

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

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

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MIL OSI Russia News –

MIL-OSI USA: Congressman Allen Introduces Bill Preserving Consumer Choice

Source: United States House of Representatives – Congressman Rick Allen (R-GA-12)

Today, Congressman Rick W. Allen (GA-12) introduced the Don’t Mess with My Home Appliances Act. Following the Biden-Harris Administration’s four-year assault on consumer choice, this legislation implements necessary reforms to the Energy Policy Conservation Act (EPCA) to prevent future administrations from prioritizing a radical rush-to-green agenda over the affordability and availability of reliable household appliances that Americans rely on every day.

Following the bill’s introduction, Congressman Allen issued the statement below:

“Under the guise of energy efficiency, the Biden-Harris Administration waged a four-year war on domestic energy and consumer choice, and it was American families that paid the price. From gas stoves, refrigerators, and freezers, to washers, dryers, dish washers, and air conditioners—no household appliance was off limits in their pursuit of a radical rush-to-green agenda. We cannot allow that to happen again,” said Congressman Allen.

“The Don’t Mess with My Home Appliances Act is a necessary measure to prevent future administrations from issuing burdensome standards on household appliances that would drive up costs and reduce availability. I am grateful for Chairman Guthrie’s and Chairman Latta’s support as we preserve consumer choice and ensure the federal government does not tilt the scales on what appliances Americans should buy.”

“Families should have the freedom to choose what home appliances they buy and use. Under the Biden-Harris Administration, heavy-handed mandates created unworkable regulations that led to higher prices,” said Chairman Guthrie. “The Don’t Mess with My Home Appliances Act would reform the Department of Energy’s energy efficiency standards process to protect consumer choice and ensure American companies can continue to innovate. Thank you to Congressman Allen for leading this important legislation that stands up for working Americans.”

“American families should have the right to choose the appliances that work best for their homes and needs. This commonsense bill puts consumers first by restoring flexibility, encouraging innovation, and ensuring there are not one-size-fits-all federal regulations. I thank Congressman Allen for his leadership on this effort to protect American families and businesses,” said Rep. Bob Latta, Chairman of the Energy Subcommittee of the House Energy and Commerce Committee.

BACKGROUND: Enacted in 1975, the EPCA provides specific criteria the Department of Energy (DOE) must follow in order to propose a new appliance efficiency standard. The DOE may only propose a new standard if it results in a significant conservation of energy, is technologically feasible, and economically justified. The Biden-Harris Administration consistently ignored these critical consumer protections by proposing and finalizing standards that violate the statute. The Don’t Mess with my Home Appliances Act would prevent future abuses by:

Eliminating unnecessary and duplicative rulemaking requirements
Authorizing the Secretary of Energy to amend or revoke a standard if it increases costs for consumers, does not result in significant energy or water savings, is not technologically feasible, or results in the unavailability of product
Protecting affordability by requiring the DOE to consider the cost to low-income households and the full-life cycle cost of appliances when determining if the new standard is economically justified
Establishing minimum thresholds for energy or water savings that must be achieved before imposing new standards
Prohibiting the Secretary of Energy from banning products based on the type of fuel that product uses (no natural gas bans)

Full bill text can be viewed HERE.

MIL-OSI New Zealand: Climate change: ICJ ruling is a landmark win for children – Save the Children

Source: Save the Children

The historic climate change ruling at the International Court of Justice (ICJ) today is a landmark win for child campaigners, acknowledging the adverse impacts of climate change on child rights, and offering children renewed hope, Save the Children said.

The Advisory Opinion delivered by the world’s highest court finds that states’ legal obligations to address climate change extend beyond existing climate agreements. It also found that “states must take their obligations under international human rights law into account when implementing their obligations under the climate change treaties and other relevant environmental treaties.”

While not legally binding, leading environmental lawyers say the ruling “could become a guiding star for climate policies at all levels of governance”, including how States are held accountable under multiple areas of international law.

The Advisory Opinion originated from an extensive campaign led by a group of law students from the Pacific Islands, with strong support from the Republic of Vanuatu [1].

In December last year, Vepaiamele, 16, a child campaigner with Save the Children Vanuatu, travelled to The Hague with the Government of Vanuatu – the only child to attend as part of a government delegation – to speak about the impacts of climate change on the Pacific island nation and call for action.

Vepaiamele said today: “This Advisory Opinion is everything I hoped for and I am so happy with this outcome as I know it will pave the way for a safer future for youth like myself and future generations, too.”

Speaking from The Hague last year , Vepaiamele said:

“As a young Ni-Vanuatu girl, I feel the effects of climate change every day of every year. I’ve experienced many cyclones. It can be kind of terrifying sometimes, especially the really strong ones. Every cyclone, our classrooms are destroyed, our homes are flattened to the ground, and hospitals and communication towers are ripped apart. And then there’s also the mental health impacts, and we don’t really talk about it that much, but it can really cause anxiety in children and young people.”

Human-induced climate change is driving up global temperatures, with the past 10 years the warmest on record, according to the World Meteorological Organization. Children, particularly those affected by inequality and discrimination, bear the brunt of climate change impacts that are already forcing them from their homes, putting food out of reach, damaging schools and increasing risks like child marriage as they are forced out of education and into poverty.

Limiting warming temperatures through the rapid phase-out of the use and subsidy of fossil fuels is critical for children’s rights and lives, Save the Children said.

Earlier this year, research released by the child rights organisation with the Vrije Universiteit Brussel (VUB) found that the difference between global temperature rise of 1.5°C and 2.7°C could see 38 million more children from the 2020 birth cohort face unprecedented lifetime exposure to extreme heatwaves. [2] Save the Children also called for increased climate finance targeted at helping children and their families, child-centred and locally led adaptation and an increase in the participation of children in shaping climate action.

Save the Children New Zealand CEO Heather Campbell says, “The ICJ’s opinion strengthens the argument that climate inaction is a form of intergenerational injustice, disproportionately borne by those least responsible and least equipped to adapt.

“At home in Aotearoa New Zealand, children and their families are experiencing the devastating impacts of extensive flooding and other climate-related emergencies, including Cyclone Gabrielle. Communities across the Nelson Tasman region are still reeling from floods that have destroyed homes and farmland, displaced families and closed schools.

“On a recent visit to Solomon Islands, children told us about the impact rising sea levels were having on their communities, including monthly flooding in homes and schools, saline infiltration into fresh water supplies, and crops being destroyed. In other parts of the Pacific, communities are having to constantly rebuild after multiple cyclones in the last few years alone. These are not future scenarios – they are current realities.

“Save the Children welcomes the finding from the ICJ, and we also urge governments and development agencies to ensure that climate finance reaches those on the frontline of this crisis.

“Currently, only 2.4% of climate finance from multilateral funding sources is child centred. Even without the Court’s opinion, we know that states must do far more to protect children from the worst impacts of this crisis, including by significantly increasing climate finance to uphold children’s rights and access to health, education and protection.”

In light of the ICJ’s Advisory Opinion, Save the Children New Zealand is calling on the New Zealand Government to renew its commitment to provide climate finance to help communities recover from climate induced loss and damage as well as working to reduce the country’s carbon emissions.

As the world’s leading independent child rights organisation, Save the Children works in about 110 countries, tackling climate change across everything we do. Save the Children supports children and their communities across the Pacific and globally in preventing, preparing for, adapting to, and recovering from both sudden climate disasters and slow onset climate change. We have set up floating schools, rebuilt destroyed homes and provided cash grants to families hit by disasters.

We also work to influence governments and other key stakeholders in Aotearoa New Zealand and around the world on climate policies, including at the UNFCCC COP summits, giving children a platform for their voices to be heard.

Notes:

Multimedia can be found here including Vepaiamele with other young people on Tuesday 22 July, Vepaiamele at the Hague, and general vision of Vanuatu

[1] The Advisory Opinion is in response to a Pacific-led resolution (A/RES/77/276) to the UN General Assembly adopted by consensus on 29 March 2023. This was the result of an extensive campaign by a group of law students from the University of the South Pacific ( Pacific Islands Students Fighting Climate Change ) with strong support from the Republic of Vanuatu. Save the Children has worked closely with the Pacific Islands Students Fighting Climate Change to ensure the voices of children and young people are incorporated into countries’ written and oral submissions to the Court. As part of her campaigning work, Vepaiamele and other activists met with embassies of high emitting countriesin Vanuatu ahead of the hearing to try and influence their submissions.

[2] The report found that, for children born in 2020, if global temperature rise is limited to 1.5°C rather than reaching 2.7°C above pre-industrial levels:

– About 38 million would be spared from facing unprecedented lifetime exposure to heatwaves; o About 8 million would avoid unprecedented lifetime exposure to crop failures; o About 5 million would be spared from unprecedented lifetime exposure to river floods; o About 5 million would avoid unprecedented lifetime exposure to tropical cyclones; o About 2 million would avoid unprecedented lifetime exposure to droughts; o About 1.5 million children would be spared unprecedented lifetime exposure to wildfires.

MIL OSI New Zealand News –

MIL-OSI Security: Billings man sentenced to 14 years in prison on drug and gun charges

Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

BILLINGS – A Billings man who distributed drugs in the Billings area was sentenced today to 168 months in prison to be followed by 4 years of supervised release, U.S. Attorney Kurt Alme said.

Tirrell Lewis, 45, pleaded guilty in February 2025 to one count of possession with intent to distribute controlled substances and one count of prohibited person in possession of a firearm and ammunition.

U.S. District Judge Susan P. Watters presided.

The government alleged in court documents that on November 3, 2023, law enforcement officers received a call that there were two gunshots in the vicinity of a residential address and the caller saw a gray Mustang leave the area very quickly. Officers spoke to the Lewis’s girlfriend on scene, and she said the sounds were fireworks. She also said she and Lewis were in a relationship and he had not been present at her residence. She allowed officers to look in her backyard where they found two spent rifle casings.

The caller told police Lewis had been at the residence and he and his girlfriend were arguing before the two gunshots and then the caller saw Lewis leave in the gray Mustang.

Later that evening officers located the Mustang. They attempted to stop the vehicle, but it fled a short distance before stopping in front of Lewis’s girlfriend’s residence. Lewis got out of the car and fled on foot behind the residence. He circled the house and ran right into an officer who then arrested him. When Lewis was taken into custody, he was found to have $6,216.18 on his person.

On November 13, 2023, a search warrant was executed on the Mustang. Inside were 4 firearms, 91 rounds of assorted ammunition, 7 ounces of fentanyl, and 9 ounces of methamphetamine. The drugs were located in a backpack in the trunk. The fentanyl was in 3 bags inside. One contained 50 pills, one contained 1,003, and one contained 814. The methamphetamine was in two zip lock baggies next to a scale and 23 clean baggies. There was a paystub for Lewis and one of the handguns under the backpack.

Lewis is prohibited from possessing firearms due to a previous federal conviction.

Assistant U.S. Attorney Thomas Godfrey prosecuted the case. The investigation was conducted by the Billings Police Department, ATF, and DEA.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.

MIL Security OSI –

MIL-OSI Security: FEDERAL CHARGES FILED AGAINST PENSACOLA MAN FOR ARMED DRUG TRAFFICKING

Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

PENSACOLA, FLORIDA – Carlton Shoemaker, 51, of Pensacola, Florida, has been indicted in federal court for three counts of possessing with the intent to distribute controlled substances, one count of possession of a firearm in furtherance of a drug trafficking offense, and one count of possession of a firearm by a convicted felon. John P. Heekin, United States Attorney for the Northern District of Florida announced the charge.

Shoemaker appeared before United States Magistrate Judge Zachary C. Bolitho at the United States Courthouse in Pensacola, Florida on July 22, 2025.

If convicted on all counts, Shoemaker faces up to life imprisonment.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Florida Department of Law Enforcement. The case is being prosecuted by Assistant United States Attorney Jessica S. Etherton.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline ) a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

MIL Security OSI –

MIL-OSI Security: Fleming Island Felon Sentenced To Six Years In Prison For Illegally Possessing A Firearm

Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

Jacksonville, Florida – U.S. District Judge Harvey E. Schlesinger has sentenced Jason Stewart Karst II (37, Fleming Island) to six years in federal prison for possessing a firearm as a convicted felon. Karst entered a guilty plea in March 2025.

According to court documents, in April 2024, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives received a complaint from a local shooting range that Karst and another individual had been shooting fully automatic firearms at the range. Surveillance video from the range showed Karst firing a fully automatic gun as well as a separate gun that was equipped with a silencer. Agents obtained a search warrant for a home owned by Karst and executed the warrant on May 1, 2024. During the search, agents found five silencers, a privately manufactured firearm that was equipped with a machinegun conversion device, and a pistol that was also equipped with a machinegun conversion device inside a large safe. The guns matched the appearance of the ones used by Karst at the shooting range. In addition, while agents were executing the search warrant, Karst drove up to the house. During a search of Karst’s car, officers with the Jacksonville Sheriff’s Office found a white powdery substance, over 20 grams of marijuana, a scale, a pistol without a serial number, and keys to the safe.

Karst was previously convicted of multiple felonies, including two convictions for possession of marijuana with the intent to sell or deliver, possession of a controlled substance with the intent to sell or deliver, attempted use of a minor to deliver a controlled substance, and possession of a firearm by a convicted felon. Therefore, he is prohibited from possessing firearms or ammunition under federal law. Additionally, contrary to federal law, the machinegun conversion devices and silencers were not registered in the National Firearms Registration and Transfer Record—a database maintained by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Clay County Sheriff’s Office, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Elisibeth Adams.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

MIL Security OSI –

MIL-OSI Canada: Saskatchewan Wildfire Update – July 23

Source: Government of Canada regional news

Released on July 23, 2025

As of 11:00 a.m. on Wednesday, July 23, there are 50 active wildfires in Saskatchewan. Of those active fires, four are categorized as contained, 14 are not contained, 14 are ongoing assessments and 18 are listed as protecting values.

Eleven communities are currently under an evacuation order: Resort Subdivision of Lac La Plonge, La Plonge Reserve, Northern Village of Beauval, Northern Hamlet of Jans Bay, Patuanak/English River First Nation, Montreal Lake Cree Nation, Northern Village of Pinehouse, Canoe Lake Cree First Nation/Canoe Narrows, Île-à-la-Crosse, Resort Subdivision of Cole Bay and Resort Subdivision of Little Amyot Lake.

A full list of evacuated communities can be found on the Active Evacuations webpage.

Any evacuees should register through the Sask Evac Web Application and then call 1-855-559-5502 between 8 a.m. and 5 p.m. to have their needs assessed for additional assistance. Individuals who need help registering through the application can call the 855 Line for assistance.

Evacuees supported by the Canadian Red Cross should call 1-800-863-6582.

Due to the wildfire conditions continuing to impact communities and individuals in northern Saskatchewan, Corrections, Policing and Public Safety Minister Tim McLeod sent a letter to the Federal Minister of Emergency Management and Community Resilience and Public Safety Eleanor Olszewski requesting the following resources to assist in the wildfire response efforts:

Type 3 fire personnel, up to 300, that could be utilized for wildfire mop up operations. Logistical support, lodging, food and transportation may be required for the deployed type 3 personnel.
Medium and intermediate helicopters for bucketing and crew movement.
Value Protection kits – sprinkler and hoses for structure protection in various communities.
Water tenders / water haulers for assisting with wildfire mop up and fire mitigation in various communities.

The latest wildfire information, an interactive fire ban map, frequently asked questions, fire risk maps and fire prevention tips can be found at saskpublicsafety.ca.

For more information, review the current fire bans and restrictions in provincial parks and recreation sites.

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For more information, contact:

MIL OSI Canada News –

MIL-OSI USA: Chairman Smith Op-Ed: The One Big Beautiful Bill Act and Trump’s Trade Policy Will Do What ‘Bidenomics’ Never Could

Source: United States House of Representatives – Representative Mike Johnson (LA-04)

WASHINGTON — Today, Ways and Means Chairman Jason Smith published an op-ed in the Washington Examiner highlighting how the One Big Beautiful Bill and President Trump’s trade policy will do what ‘Bidenomics’ NEVER could.

“Democrats in Washington like to push a narrative that you cannot cut taxes and decrease the deficit. But economic growth fueled by The One Big Beautiful Bill Act, combined with common-sense government spending cuts and President Donald Trump’s successful America First trade policy, will prove them wrong once again,” Chairman Smith wrote.

Read Chairman Smith’s full op-ed in Washington Examiner here or below:

For four years, Democrats in Washington pushed a reckless tax-and-spend agenda known as “Bidenomics” that blew a hole in the U.S.’s national debt. More than $10 trillion later, and along with 20% inflation that federal spending created, our nation is at a fiscal crossroads. The status quo is not acceptable or sustainable.

Democrats in Washington like to push a narrative that you cannot cut taxes and decrease the deficit. But economic growth fueled by The One Big Beautiful Bill Act, combined with common-sense government spending cuts and President Donald Trump’s successful America First trade policy, will prove them wrong once again.

In fact, it is already happening. June saw the first federal budget surplus in more than nine years, with revenues exceeding spending by $26 billion, thanks to a windfall of $18 billion in new tariff revenue. While deficits are likely to continue in the near term, this is a start in the right direction.

The myth that you cannot cut taxes and restore fiscal sanity depends on dismissing the tax incentives in the One Big Beautiful Bill Act that will drive investment, create jobs, and grow our economy. The simple truth: They will, and they have before.

Even though the 50-year historic average GDP growth is over 2.7%, the “nonpartisan” Congressional Budget Office forecasts economic growth will be just 1.8% in the coming years, and the projected deficit impact of the “big, beautiful bill” based on that growth would be $3.3 trillion over ten years. However, if our nation’s economic growth rises just 0.1% above the historic average and clocks in at 2.8%, federal deficits will actually be reduced by over half a trillion dollars.

Is this possible? We know it is because in the years following the passage of Trump’s 2017 tax cuts, the United States’s economy grew by 2.8%. It can and will happen again.

Increased federal revenues driven by economic growth are just one piece of the equation. Trump’s successful America First trade policy is not only forcing our trading partners to the table to deliver better deals for American manufacturers and farmers, but it is also providing tens of billions of dollars for deficit reduction each month.

Even the CBO predicts that the new tariff policies will generate $2.5 trillion in new revenue for the federal government over the next 10 years. That is no small sum.

Putting direct tariff revenue aside, as countries come to the table and more markets open for American producers, our economic growth will accelerate further. The One Big Beautiful Bill Act and America First trade policies will turbocharge our entrepreneurs to produce more, hire more, and invest more here at home. This will only boost revenues flowing into the federal government further.

While economic growth and tariffs are part of the solution, Congress must be forced to address the elephant in the room: federal spending. The One Big Beautiful Bill Act took a massive turn down the correct path by cutting over $1.5 trillion in mandatory spending — the most in American history.

Complacency and lax oversight for years have allowed spending to explode, mostly in our nation’s social safety net programs. Fraud and abuse were allowed to run rampant, putting these programs at risk for the people who truly rely on them.

Through common-sense reforms such as work requirements, which more than 80% of the public supports, the One Big Beautiful Bill Act has eliminated wasteful spending and protected these programs for future generations. But more must be done.

Economic growth and tariff revenue alone will not save us, but they are certainly a start. Congress must make responsible decisions in the years to come to prevent saddling the next generation with even more crippling debt and economic decline.

Addressing our nation’s debt crisis will require a multifaceted, holistic approach, but Republicans are already taking America down the right track.

###

MIL-OSI USA: Wasserman Schultz, Carter, Norcross Reintroduce Bipartisan Pool Safety Legislation to Save Young Lives

Source: United States House of Representatives – Representative Debbie Wasserman Schultz (FL-23)

“No work we do in Congress is more important than keeping our children healthy and safe. And the Virginia Graeme Baker Pool and Spa Safety Act does that by saving countless lives over the years. So, it is critical that we continue this bipartisan, common-sense law, which this reauthorization does by expanding its life-saving impact,” said Wasserman Schultz. “Just this year in my home state we’ve seen over 60 drownings, which is more incidents than at this same time last year. But with education and added layers of protection we can keep more innocent children safe. This law does that by helping decrease drowning in pools and spas, a concern on every parent’s mind as the summer season and water activities pick up. Let’s keep our kids safe with sensible outreach, education, and precautions.”

Washington, D.C. – Today, U.S. Reps. Debbie Wasserman Schultz (FL-25), John Carter (TX-31), and Donald Norcross (NJ-01) re-introduced the bipartisan Virginia Graeme Baker Pool and Spa Safety (VGB) Reauthorization Act to help decrease preventable drownings.

Drownings and near-drownings in pools and spas pose a significant public health risk to our nation’s children. These water-safety fatalities remain the leading cause of unintentional death for children ages one to four, with higher incidents of drowning deaths for American Indian and Black individuals. However, we are not powerless to prevent these tragedies. Strong education, awareness, and enforcement efforts help make children safer around the water and save lives.

“No work we do in Congress is more important than keeping our children healthy and safe. And the Virginia Graeme Baker Pool and Spa Safety Act does that by saving countless lives over the years. So, it is critical that we continue this bipartisan, common-sense law, which this reauthorization does by expanding its life-saving impact,” said Wasserman Schultz. “Just this year in my home state we’ve seen over 60 drownings, which is more incidents than at this same time last year. But with education and added layers of protection we can keep more innocent children safe. This law does that by helping decrease drowning in pools and spas, a concern on every parent’s mind as the summer season and water activities pick up. Let’s keep our kids safe with sensible outreach, education, and precautions.”

“The Virginia Graeme Baker Pool and Spa Safety Act has saved many lives since 2008 by helping to prevent drownings through stronger safety standards and public education,” said Carter. “Now, with summer in full swing and families spending more time at the pool, reauthorizing this law is more important than ever. We should all want our children to be safe around the pool, and this bill is a smart, bipartisan way to protect them. I thank my colleague Rep. Wasserman Schultz for her advocacy on this issue, and I hope my colleagues will support.”

“The Virginia Graeme Baker Pool and Spa Safety Act is a common-sense bill that has already saved countless lives. It’s a great example of when a policy works the way it was intended. The results speak for themselves since there haven’t been any entrapment deaths in public pools since the legislation was enacted,” said Norcross. “That’s why I’m honored to cosponsor this bill’s reauthorization to continue ensuring our pools install safe drain covers and, most importantly, save lives.”

The Virginia Graeme Baker Pool and Spa Safety Act (VGB), first authorized in 2008, is aimed at improving the safety of all pools and spas by increasing the layers of protection and promoting uninterrupted supervision to prevent child drowning and entrapment. The law has three principal elements, carried out by the Consumer Product Safety Commission (CPSC):

First, it requires every public pool in the US to install safe drain covers that prevent suction entrapment.

2. Second, it initiates a grant program that incentivizes states, municipalities, and Indian Tribes to adopt their own pool and spa safety laws and support education efforts. These grants provide critical support for local officials to enforce their safety requirements and educate communities about drowning and entrapment dangers.

Third, it launches “Pool Safely,” a national public education campaign to raise awareness about drowning prevention.

The VGB Reauthorization Act will continue to carry out these primary functions as it builds on over a decade’s worth of expertise in proper execution of the programs through the CPSC.

Click here for full bill text.

“The Virginia Graeme Baker Pool & Spa Safety Act is a perfect example of how sensible and sound policy can save lives. Since the passage of the legislation, entrapment deaths in public pools have ceased and have been substantially reduced in private pool settings. This shows how well-designed legislation can have direct impacts on child safety and engineer our pool environments to be safer for all. The reauthorization not only ensures communities continue to be safe from this preventable tragedy, but also that water safety efforts will continue across the country to address the more than 4,000 fatal drownings the US experiences each year,” said Alissa Magrum, Executive Director of the National Drowning Prevention Alliance (NDPA).

“The passage of the VGB Act, in a significant way, has helped to make some sense of the tragic death of my daughter, Graeme, and so many children whose lives have been lost in preventable drownings. The reauthorization of the legislation also makes sense, as we have learned over the past 15 years what works well and what might be done even better to ensure water safety. I am fully support of the bill,” said Nancy Baker, mother of Virginia Graeme Baker and water safety advocate.

“The Virginia Graeme Baker Pool and Spa Safety Act has saved lives. Reauthorization of this Act allows for its proven safety standards to continue to do its good work, making pools and spas across the United States safer for those who use them. This legislative intervention creates actions and outcomes that those working in public health so often hope to see. It works! The associated Pool Safely funding mechanism is also an essential piece and has been effective in keeping the message of water safety top of mind. The American Red Cross fully supports this reauthorization and all efforts to reduce drownings across the country,” said William Ramos, Ph.D., American Red Cross Scientific Advisory Council Aquatics Chair.

“On behalf of the nation’s YMCAs, which operate more than 2,100 pools across the country, YMCA of the USA strongly supports the Virginia Graeme Baker Pool and Spa Safety Reauthorization Act. As the largest provider of swim instruction in the country, the Y greatly appreciates the inclusion of nonprofits in the act’s Swimming Pool Safety Grant Program, which creates opportunities for community-based organizations like YMCAs to secure additional resources to raise awareness about drowning prevention and make swim instruction more accessible to those who need it,” said Suzanne McCormick, President and CEO, YMCA of the USA.

“Our daughter Abbey’s hope was that no other child would experience a death or injury from a dangerous pool or spa. The VGB act was the realization of that hope. We can all still do better with the reauthorization of this critical safety legislation. We unequivocally support this bill,” said Scott and Katey Taylor, founders of Abbey’s Hope Charitable Foundation.

“The core purpose of the Pool & Hot Tub Alliance is to prioritize safety and health in pool and hot tub environments. We have been unwavering in our support for the reauthorization of the VGB Act, recognizing its significant impact on saving lives. PHTA is proud to play a role in the VGB Act through the development of two industry safety standards that establish stringent requirements for suction outlet fitting assemblies and suction entrapment avoidance. By reauthorizing this legislation, we will ensure a substantial reduction in fatal drownings—a cause that deserves universal backing,” said Sabeena Hickman, CAE, President & CEO of the Pool & Hot Tub Alliance (PHTA).

“The VGB Act, passed only five months after our son Zachary’s death, brought a semblance of peace and hope to our family. That no one has died by entrapment in a public pool since the VGB Act was passed is a victory that we should all celebrate but, there is more work to be done. Even now, sixteen years later, we are seeing recalls on drains that aren’t compliant. The reauthorization of this bill is vital to our communities and will ensure that all public pools comply with entrapment prevention requirements and will support efforts to address traditional forms of drowning. Our family and the ZAC Foundation for Children’s Safety, founded in our son’s honor, are committed to the success of this bill,” said Karen and Brian Cohn, founders of ZAC Foundation.

“CamerEye has always been a vocal leader in advocating for safe aquatic environments—they are absolutely critical to industry. Not only does Virginia Graeme Baker Act reiterate the requirement for safe and compliant drain covers, it incentivizes state, local, and Tribal jurisdictions to implement and enforce swimming pool and spa safety standards which has been proven to save lives. This act is a perfect example of how policy can positively impact saving lives and this reauthorization represents a chance to build on that success. We’re in full support of this reauthorization act.” said Sai Reddy, founder/CEO of CamerEye.ai.

“The Virginia Graeme Baker Act is a shining example of how good policy can save lives, and this reauthorization represents a chance to build on that success. This is also an opportunity to address the serious and persistent inequities that exist around water safety,” said Safe Kids Worldwide President Torine Creppy.

####

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

Source: United Nations 2-b

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

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

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

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

No place is safe

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

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

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

Use of long-range weapons

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

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

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

MIL OSI United Nations News –

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

Source: United Nations 2-b

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

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

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

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

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

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

Human toll rising

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

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

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

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

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

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

Refugee crisis deepens

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

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

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

MIL OSI United Nations News –

MIL-OSI: 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.

MIL-OSI: TowneBank Reports Second Quarter 2025 Earnings

Source: GlobeNewswire (MIL-OSI)

Suffolk, Va., July 23, 2025 (GLOBE NEWSWIRE) — TowneBank (the “Company” or “Towne”) (NASDAQ: TOWN) today reported earnings for the quarter ended June 30, 2025 of $38.84 million, or $0.51 per diluted share, compared to $42.86 million, or $0.57 per diluted share, for the quarter ended June 30, 2024. Excluding certain items affecting comparability, core earnings (non-GAAP) were $61.34 million, or $0.81 per diluted share, in the current quarter compared to $42.56 million, or $0.57 per diluted share, for the quarter ended June 30, 2024.

“Our Company delivered a record revenue quarter highlighting the strength of our Main Street banking strategy. Organic loan growth during the second quarter climbed nearly 5% on an annualized basis while credit trends continue to demonstrate best in class metrics. Our margin expanded 24 basis points during the quarter fueled by our partnership with Village Bank in our Richmond market. As we look ahead, we believe this quarter demonstrates the strength of our diversified revenue model and disciplined approach to strategic partnerships with focused execution. I wish to thank our more than 2,800 family members who work each day to Serve Others and Enrich Lives,” said G. Robert Aston, Jr., Executive Chairman.

Highlights for Second Quarter 2025:

Total revenues were a record $207.44 million, an increase of $32.47 million, or 18.56%, compared to second quarter 2024. Net interest income increased $28.17 million, driven by a combination of increased interest income and lower deposit costs. Additionally, noninterest income increased $4.31 million.
Towne successfully completed the acquisition of Village Bank and Trust Financial Corp. and its wholly-owned bank subsidiary, Village Bank (“Village”), in April 2025. Included in that acquisition were $576.57 million in loans, $74.31 million in securities, and $637.49 million in deposits.
Total deposits were $15.33 billion, an increase of $1.06 billion, or 7.40%, compared to second quarter 2024. Total deposits increased 4.93%, or $0.72 billion, in comparison to March 31, 2025. Excluding $637.49 million in acquired deposits, total deposits would have increased $418.64 million, or 2.93% compared to the prior year and $82.68 million, or 2.27% on an annualized basis, compared to the linked quarter.
Noninterest-bearing deposits increased 10.47%, to $4.75 billion, compared to second quarter 2024 and represented 31.02% of total deposits. Compared to the linked quarter, noninterest-bearing deposits increased 10.22%. The increase includes noninterest-bearing deposits of $238.54 million acquired in the Village transaction.
Loans held for investment were $12.36 billion, an increase of $0.91 billion, or 7.93%, compared to June 30, 2024, and $0.71 billion, or 6.07% compared to March 31, 2025. Excluding loans acquired in the quarter, total loans would have increased $331.35 million, or 2.89%, compared to the prior year and $130.35 million, or 4.49% on an annualized basis, compared to the linked quarter.
Annualized return on common shareholders’ equity was 7.14% compared to 8.49% in second quarter 2024. Annualized return on average tangible common shareholders’ equity (non-GAAP) was 10.44% compared to 12.16% in second quarter 2024.
Net interest margin was 3.38% for the quarter and tax-equivalent net interest margin (non-GAAP) was 3.40%, including purchase accounting accretion of 6 basis points, compared to the prior year quarter net interest margin of 2.86% and tax-equivalent net interest margin (non-GAAP) of 2.89%, including purchase accounting accretion of 5 basis points.
Compared to the linked quarter, both net interest margin and spread increased 24 basis points.
The effective tax rate was 22.23% in the quarter compared to 15.93% in second quarter 2024 and 13.95% in the linked quarter. The higher tax rate in the current quarter was due to an increase in state tax expense, an adjustment to deferred income tax related to the repurchase of noncontrolling interests in Resort Property Management, and nondeductible expenses related to the Village acquisition. Management expects the tax rate to normalize in the second half of 2025.

“We were pleased to close our Village Bank partnership and successfully complete the systems integration during the second quarter. Internally, our focus will shift during the second half of the year to closing our recently announced partnership with Old Point. Both of these strategic transactions will provide meaningful earnings momentum as we manage through an uncertain economic environment,” stated William I. Foster III, President and Chief Executive Officer.

Quarterly Net Interest Income:

Net interest income was $137.21 million compared to $109.05 million for the quarter ended June 30, 2024.
On an average basis, loans held for investment, with a yield of 5.56%, represented 75.52% of earning assets at June 30, 2025 compared to a yield of 5.45% and 74.76% of earning assets at June 30, 2024.
The cost of interest-bearing deposits was 2.61% for the quarter ended June 30, 2025, compared to 3.32% in second quarter 2024. Interest expense on deposits decreased $13.87 million, or 16.91%, from the prior year quarter driven by decreases in rate.
Our total cost of deposits decreased to 1.80% from 2.32% for the quarter ended June 30, 2024 due to lower interest-bearing deposit rates. The Federal Reserve Open Market Committee lowered the overnight funds rate a total of 100 basis points in the last four months of 2024.
Average interest-earning assets totaled $16.29 billion at June 30, 2025 compared to $15.34 billion at June 30, 2024, an increase of 6.17%. The Company anticipates approximately $885 million in cash flows from its securities portfolio to be available for reinvestment in the next 24 months.
Average interest-bearing liabilities totaled $10.80 billion, an increase of $509.83 million, or 4.96%, from prior year, driven by demand and money market deposit growth. Borrowings increased over the linked quarter, driven by debt assumed in the Village acquisition, but were nearly level with prior year.

Quarterly Provision for Credit Losses:

The quarterly provision for credit losses was an expense of $6.41 million compared to a benefit of $177 thousand in the prior year quarter and an expense of $2.42 million in the linked quarter. The provision includes an initial provision for credit losses of $6.24 million related to loans and commitments acquired in the Village transaction.
The allowance for credit losses on loans increased $8.06 million in second quarter 2025, compared to the linked quarter, $7.75 million of which resulted from the April 2025 acquisition of Village. In addition to the $6.06 million initial acquisition related provision for the purchased loan portfolio we increased our allowance $1.69 million for purchased credit deteriorated loan marks. Additional allowance increases were primarily driven by loan portfolio growth.
Net loan charge-offs were $19 thousand in the quarter, and $626 thousand in the linked quarter, compared to net recoveries of $19 thousand in the prior year quarter.
The ratio of net charge-offs to average loans on an annualized basis was 0.00% in both second quarter 2025 and 2024, compared to 0.02% in the linked quarter.
The allowance for credit losses on loans represented 1.09% of total loans at June 30, 2025, compared to 1.10% at June 30, 2024, and 1.08% at March 31, 2025. The allowance for credit losses on loans was 16.81 times nonperforming loans compared to 19.08 times at June 30, 2024 and 19.15 times at March 31, 2025.

Quarterly Noninterest Income:

Total noninterest income was $70.23 million compared to $65.92 million in 2024, an increase of $4.31 million, or 6.53%.
Total net insurance commissions increased $1.65 million, or 6.85%, to $25.68 million in second quarter 2025 compared to 2024. This increase was primarily attributable to organic growth-related property and casualty commissions.
Property management fee revenue was $15.56 million in second quarter 2025, an increase of 8.69%, or $1.24 million, compared to second quarter 2024. The increase was driven by an acquisition in 2024 and changes to our fee structure.
Residential mortgage banking income was $13.56 million compared to $13.42 million in second quarter 2024. Loan volume increased to $671.47 million in second quarter 2025 from $626.98 million in second quarter 2024. Residential purchase activity was 92.37% of production volume in the second quarter of 2025 compared to 94.85% in second quarter 2024.
At 3.13%, gross margins on residential mortgage sales decreased 5 basis points from the linked quarter and 15 basis points from 3.28% in second quarter 2024.

Quarterly Noninterest Expense:

Total noninterest expense was $150.67 million compared to $123.98 million in 2024, an increase of $26.68 million, or 21.52%. This increase was primarily attributable to acquisition-related expenses and growth in salaries and employee benefits.
The April 2025 acquisition of Village and the acquisition of Old Point Financial Corporation expected to be completed third quarter 2025, resulted in $18.74 million in acquisition-related expenses in the quarter.
Salaries and benefits expense increased $7.01 million, driven by annual base salary adjustments that went into effect October 2024, higher production incentives, and an increase in banking personnel, primarily related to the Village acquisition.

Consolidated Balance Sheet Highlights:

Total assets were $18.26 billion for the quarter ended June 30, 2025, a $0.75 billion increase compared to $17.51 billion at March 31, 2025. Total assets increased $1.20 billion, or 7.01%, from $17.07 billion at June 30, 2024.
Loans held for investment increased $0.91 billion, or 7.93%, compared to prior year and $0.71 billion, or 6.07%, compared to the linked quarter. The Company continues to maintain a strong credit discipline.
Mortgage loans held for sale increased $37.98 million, or 18.92%, compared to prior year and $70.23 million, or 41.68%, compared to the linked quarter, driven by production levels.
Total deposits increased $1.06 billion, or 7.40%, driven by interest-bearing demand deposits, compared to prior year. In the linked quarter comparison, total deposits increased $0.72 billion, or 4.93%.
Noninterest-bearing deposits increased $450.57 million, or 10.47%, compared to prior year and $440.79 million, or 10.22%, compared to the linked quarter.
Total borrowings decreased $1.05 million, or 0.36%, compared to second quarter 2024 but increased $10.01 million, or 3.52%, compared to the linked quarter, due to acquired FHLB borrowings and subordinated debt.

Investment Securities:

Total investment securities were $2.78 billion compared to $2.70 billion at March 31, 2025 and $2.49 billion at June 30, 2024. The weighted average duration of the portfolio at June 30, 2025 was 3.2 years. The carrying value of the available-for-sale debt securities portfolio included net unrealized losses of $113.14 million at June 30, 2025, compared to $119.25 million at March 31, 2025 and $172.93 million at June 30, 2024, with the changes in fair value due to the change in interest rates.

Loans and Asset Quality:

Total loans held for investment were $12.36 billion at June 30, 2025, $11.65 billion at March 31, 2025, and $11.45 billion at June 30, 2024. Excluding loans acquired in the quarter, total loans would have increased $331.35 million, or 2.89%, compared to the prior year and $130.35 million, or 4.49% on an annualized basis, compared to the linked quarter. Real estate construction and development loans declined compared to the prior year, but were offset by increases in non-owner and owner occupied real estate and multifamily commercial real estate.
Nonperforming assets were $9.29 million, or 0.05% of total assets, compared to $7.16 million, or 0.04%, at June 30, 2024, and $7.37 million, or 0.04%, at the linked quarter end.
Nonperforming loans were 0.06% of period end loans at June 30, 2025, June 30, 2024, and the linked quarter end.
Foreclosed property consisted of $966 thousand in other real estate owned and $340 thousand in repossessed autos, for a total of $1.31 million in foreclosed property at June 30, 2025, compared to $581 thousand in repossessed autos, for a total of $581 thousand in foreclosed property at June 30, 2024.

Deposits and Borrowings:

Total deposits were $15.33 billion compared to $14.61 billion at March 31, 2025 and $14.27 billion at June 30, 2024. Excluding $0.64 billion in acquired deposits, total deposits would have increased $418.64 million, or 2.93%, compared to the prior year and $82.68 million, or 2.27% on an annualized basis, compared to the linked quarter.
The ratio of period end loans held for investment to deposits was 80.63% compared to 79.77% at March 31, 2025 and 80.24% at June 30, 2024.
Noninterest-bearing deposits were 31.02% of total deposits at June 30, 2025 compared to 29.53% at March 31, 2025 and 30.15% at June 30, 2024. Noninterest-bearing deposits increased $450.57 million, or 10.47%, compared to June 30, 2024, and $440.79 million, or 10.22%, compared to the linked quarter.
Total borrowings were $294.12 million compared to $284.10 million at March 31, 2025 and $295.17 million at June 30, 2024.

Capital:

Common equity tier 1 capital ratio of 11.77%⁽¹⁾.
Tier 1 leverage capital ratio of 9.93%⁽¹⁾.
Tier 1 risk-based capital ratio of 11.82%⁽¹⁾.
Total risk-based capital ratio of 14.49% ⁽¹⁾ .
Book value per common share was $29.58 compared to $29.19 at March 31, 2025 and $27.62 at June 30, 2024.
Tangible book value per common share (non-GAAP) was $21.98 compared to $22.36 at March 31, 2025 and $20.65 at June 30, 2024.

⁽¹⁾ Preliminary.

About TowneBank:
Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a focus of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.

Today, TowneBank operates over 55 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its affiliated companies that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices RW Towne Realty, Towne 1031 Exchange, and Towne Vacations. With total assets of $18.26 billion as of June 30, 2025, TowneBank is one of the largest banks headquartered in Virginia.

Non-GAAP Financial Measures:
This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such non-GAAP financial measures include the following: fully tax-equivalent net interest margin, core operating earnings, core net income, tangible book value per common share, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of TowneBank’s core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.

Forward-Looking Statements:
This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional terms, such as “will,” “would,” “should,” “could,” “may,” “likely,” “probably,” or “possibly.” These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; an unforeseen outflow of cash or deposits or an inability to access the capital markets, which could jeopardize our overall liquidity or capitalization; changes in the creditworthiness of customers and the possible impairment of the collectability of loans; insufficiency of our allowance for credit losses due to market conditions, inflation, changing interest rates or other factors; adverse developments in the financial industry generally, such as the 2023 bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; geopolitical instability, including wars, conflicts, trade restrictions and tariffs, civil unrest, and terrorist attacks and the potential impact, directly or indirectly, on our business; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses to them; changes in the legislative or regulatory environment, including changes in accounting standards and tax laws, that may adversely affect our business; our ability to successfully integrate the businesses from recently completed and pending acquisitions, including our pending merger with Old Point Financial Corporation (“Old Point”), to the extent that it may take longer or be more difficult, time-consuming, or costly to accomplish than expected; our ability to close the transaction with Old Point when expected or at all because required approvals and other conditions to closing are not received or satisfied on the proposed terms or on the anticipated schedule; deposit attrition, operating costs, customer losses, and business disruption associated with recently completed or pending acquisitions, including reputational risk and adverse effects on relationships with employees, customers or other business partners, that may be greater than expected; costs or difficulties related to the integration of the businesses we have acquired that may be greater than expected; expected growth opportunities or cost savings associated with recently completed or pending acquisitions may not be fully realized or realized within the expected time frame; the diversion of management’s attention and time from ongoing business operations and opportunities on merger related matters; cybersecurity threats or attacks, whether directed at us or at vendors or other third parties with which we interact, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area, including any adverse impact of actual and proposed cuts to federal spending, including defense, security and military spending, on the Greater Hampton Roads economy. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward-looking statements included in this report, see the “Risk Factors” in TowneBank’s Annual Report on Form 10-K for the year ended December 31, 2024 and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.

Media contact:
G. Robert Aston, Jr., Executive Chairman, 757-638-6780
William I. Foster III, President and Chief Executive Officer, 757-417-6482

Investor contact:
William B. Littreal, Chief Financial Officer, 757-638-6813

TOWNEBANK
Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)

		Three Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
			2025			2025			2024			2024			2024
Income and Performance Ratios:
	Total revenue	$	207,442		$	192,044		$	177,160		$	174,518		$	174,970
	Net income		39,269			50,887			41,441			43,126			43,039
	Net income available to common shareholders		38,837			50,592			41,265			42,949			42,856
	Net income per common share – diluted		0.51			0.67			0.55			0.57			0.57
	Book value per common share		29.58			29.19			28.43			28.59			27.62
	Book value per common share – tangible ^(non-GAAP)		21.98			22.36			21.55			21.65			20.65
	Return on average assets		0.86	%		1.19	%		0.95	%		1.00	%		1.01	%
	Return on average assets – tangible ^(non-GAAP)		0.96	%		1.29	%		1.03	%		1.09	%		1.11	%
	Return on average equity		7.12	%		9.50	%		7.64	%		8.12	%		8.43	%
	Return on average equity – tangible ^(non-GAAP)		10.39	%		13.08	%		10.68	%		11.42	%		12.03	%
	Return on average common equity		7.14	%		9.57	%		7.70	%		8.18	%		8.49	%
	Return on average common equity – tangible ^(non-GAAP)		10.44	%		13.21	%		10.79	%		11.54	%		12.16	%
	Noninterest income as a percentage of total revenue		33.85	%		37.27	%		33.36	%		35.66	%		37.68	%
Regulatory Capital Ratios (1):
	Common equity tier 1		11.77	%		12.75	%		12.77	%		12.63	%		12.43	%
	Tier 1		11.82	%		12.87	%		12.89	%		12.76	%		12.55	%
	Total		14.49	%		15.65	%		15.68	%		15.54	%		15.34	%
	Tier 1 leverage ratio		9.93	%		10.61	%		10.36	%		10.38	%		10.25	%
Asset Quality:
	Allowance for credit losses on loans to nonperforming loans	16.81x			19.15x			16.69x			18.70x			19.08x
	Allowance for credit losses on loans to period end loans		1.09	%		1.08	%		1.08	%		1.08	%		1.10	%
	Nonperforming loans to period end loans		0.06	%		0.06	%		0.06	%		0.06	%		0.06	%
	Nonperforming assets to period end assets		0.05	%		0.04	%		0.05	%		0.04	%		0.04	%
	Net charge-offs (recoveries) to average loans (annualized)		—	%		0.02	%		0.01	%		0.02	%		—	%
	Net charge-offs (recoveries)	$	19		$	626		$	382		$	677		$	(19	)

	Nonperforming loans	$	7,982		$	6,586		$	7,424		$	6,588		$	6,582
	Foreclosed property		1,306			786			443			884			581
	Total nonperforming assets	$	9,288		$	7,372		$	7,867		$	7,472		$	7,163
	Loans past due 90 days and still accruing interest	$	210		$	15		$	1,264		$	510		$	368
	Allowance for credit losses on loans	$	134,187		$	126,131		$	123,923		$	123,191		$	125,552
Mortgage Banking:
	Loans originated, mortgage	$	494,108		$	300,699		$	385,238		$	421,571		$	430,398
	Loans originated, joint venture		177,359			144,495			180,188			176,612			196,583
	Total loans originated	$	671,467		$	445,194		$	565,426		$	598,183		$	626,981
	Number of loans originated		1,750			1,181			1,489			1,637			1,700
	Number of originators		166			161			160			159			169
	Purchase %		92.37	%		89.94	%		89.46	%		91.49	%		94.85	%
	Loans sold	$	596,009		$	475,518		$	629,120		$	526,998		$	605,134
	Rate lock asset	$	2,186		$	1,880		$	1,150		$	1,548		$	1,930
	Gross realized gain on sales and fees as a % of loans originated		3.13	%		3.18	%		3.25	%		3.28	%		3.28	%
Other Ratios:
	Net interest margin		3.38	%		3.14	%		2.99	%		2.90	%		2.86	%
	Net interest margin-fully tax-equivalent ^(non-GAAP)		3.40	%		3.17	%		3.02	%		2.93	%		2.89	%
	Average earning assets/total average assets		90.23	%		90.32	%		90.57	%		90.43	%		90.36	%
	Average loans/average deposits		81.09	%		80.01	%		78.71	%		80.07	%		80.80	%
	Average noninterest deposits/total average deposits		30.88	%		29.68	%		30.14	%		30.19	%		30.06	%
	Period end equity/period end total assets		12.26	%		12.66	%		12.50	%		12.58	%		12.24	%
	Efficiency ratio ^(non-GAAP)		70.71	%		67.10	%		70.28	%		70.93	%		68.98	%
	(1) Current reporting period regulatory capital ratios are preliminary.

TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)

Investment Securities										% Change
	Q2			Q2			Q1			Q2 25 vs.		Q2 25 vs.
*Available-for-sale securities, at fair value*		2025			2024			2025		Q2 24		Q1 25
U.S. agency securities	$	345,808		$	281,934		$	320,190		22.66	%	8.00	%
U.S. Treasury notes		78,746			27,701			78,184		184.27	%	0.72	%
Municipal securities		438,490			442,474			439,379		(0.90	)%	(0.20	)%
Trust preferred and other corporate securities		115,126			88,228			98,463		30.49	%	16.92	%
Mortgage-backed securities issued by GSEs and GNMA		1,577,325			1,411,883			1,535,217		11.72	%	2.74	%
Allowance for credit losses		(1,520	)		(1,541	)		(1,262	)	(1.36	)%	20.44	%
Total	$	2,553,975		$	2,250,679		$	2,470,171		13.48	%	3.39	%
*Gross unrealized gains (losses) reflected in financial statements*
Total gross unrealized gains	$	6,048		$	1,983		$	5,909		204.99	%	2.35	%
Total gross unrealized losses		(119,186	)		(174,911	)		(125,156	)	(31.86	)%	(4.77	)%
Net unrealized gains (losses) and other adjustments on AFS securities	$	(113,138	)	$	(172,928	)	$	(119,247	)	(34.58	)%	(5.12	)%
*Held-to-maturity securities, at amortized cost*
U.S. agency securities	$	92,973		$	102,234		$	92,805		(9.06	)%	0.18	%
U.S. Treasury notes		96,250			97,171			96,481		(0.95	)%	(0.24	)%
Municipal securities		5,414			5,318			5,390		1.81	%	0.45	%
Trust preferred corporate securities		2,094			2,147			2,107		(2.47	)%	(0.62	)%
Mortgage-backed securities issued by GSEs		5,201			5,618			5,235		(7.42	)%	(0.65	)%
Allowance for credit losses		(67	)		(79	)		(68	)	(15.19	)%	(1.47	)%
Total	$	201,865		$	212,409		$	201,950		(4.96	)%	(0.04	)%

Total gross unrealized gains	$	214		$	175		$	176		22.29	%	21.59	%
Total gross unrealized losses		(5,148	)		(12,880	)		(6,563	)	(60.03	)%	(21.56	)%
Net unrealized gains (losses) in HTM securities	$	(4,934	)	$	(12,705	)	$	(6,387	)	(61.16	)%	(22.75	)%
Total unrealized gains (losses) on AFS and HTM securities	$	(118,072	)	$	(185,633	)	$	(125,634	)	(36.39	)%	(6.02	)%
										% Change
Loans Held For Investment	Q2			Q2			Q1			Q2 25 vs.		Q2 25 vs.
		2025			2024			2025		Q2 24		Q1 25
Real estate – construction and development	$	1,072,625		$	1,190,768		$	1,006,086		(9.92	)%	6.61	%
Commercial real estate – owner occupied		1,815,900			1,673,582			1,654,401		8.50	%	9.76	%
Commercial real estate – non-owner occupied		3,557,175			3,155,958			3,329,728		12.71	%	6.83	%
Real estate – multifamily		887,083			682,537			841,330		29.97	%	5.44	%
Residential 1-4 family		1,997,395			1,887,420			1,886,107		5.83	%	5.90	%
HELOC		480,610			408,273			429,152		17.72	%	11.99	%
Commercial and industrial business (C&I)		1,370,564			1,297,538			1,337,254		5.63	%	2.49	%
Government		510,902			517,954			511,676		(1.36	)%	(0.15	)%
Indirect		579,041			558,216			570,795		3.73	%	1.44	%
Consumer loans and other		88,378			79,501			86,217		11.17	%	2.51	%
Total	$	12,359,673		$	11,451,747		$	11,652,746		7.93	%	6.07	%

										% Change
Deposits	Q2			Q2			Q1			Q2 25 vs.		Q2 25 vs.
		2025			2024			2025		Q2 24		Q1 25
Noninterest-bearing demand	$	4,754,340		$	4,303,773		$	4,313,553		10.47	%	10.22	%
Interest-bearing:
Demand and money market accounts		7,654,317			6,940,086			7,463,355		10.29	%	2.56	%
Savings		332,108			312,881			312,151		6.15	%	6.39	%
Certificates of deposits		2,587,951			2,715,848			2,519,489		(4.71	)%	2.72	%
Total		15,328,716			14,272,588			14,608,548		7.40	%	4.93	%

TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)

	Three Months Ended								Three Months Ended								Three Months Ended
	June 30, 2025								March 31, 2025								June 30, 2024
				Interest			Average					Interest			Average					Interest			Average
	Average			Income/			Yield/		Average			Income/			Yield/		Average			Income/			Yield/
	Balance			Expense			Rate (1)		Balance			Expense			Rate (1)		Balance			Expense			Rate (1)
Assets:
Loans (net of unearned income and deferred costs)	$	12,304,172		$	170,520		5.56	%	$	11,527,915		$	153,068		5.38	%	$	11,471,669		$	155,374		5.45	%
Taxable investment securities		2,598,093			23,361		3.60	%		2,478,048			21,301		3.44	%		2,368,476			21,671		3.66	%
Tax-exempt investment securities		172,083			1,802		4.19	%		176,081			1,860		4.23	%		156,503			1,521		3.89	%
Total securities		2,770,176			25,163		3.63	%		2,654,129			23,161		3.49	%		2,524,979			23,192		3.67	%
Interest-bearing deposits		1,045,727			10,241		3.93	%		1,199,650			11,801		3.99	%		1,182,816			14,512		4.93	%
Mortgage loans held for sale		172,102			2,770		6.44	%		164,358			2,653		6.46	%		165,392			2,945		7.12	%
Total earning assets		16,292,177			208,694		5.14	%		15,546,052			190,683		4.97	%		15,344,856			196,023		5.14	%
Less: allowance for loan losses		(131,837	)							(124,265	)							(126,792	)
Total nonearning assets		1,896,640								1,790,075								1,764,418
Total assets	$	18,056,980							$	17,211,862							$	16,982,482
Liabilities and Equity:
Interest-bearing deposits
Demand and money market	$	7,590,290		$	42,054		2.22	%	$	7,279,365		$	40,606		2.26	%	$	6,896,176		$	48,161		2.81	%
Savings		337,807			704		0.84	%		312,118			714		0.93	%		317,774			845		1.07	%
Certificates of deposit		2,560,313			25,394		3.98	%		2,540,438			25,813		4.12	%		2,715,615			33,017		4.89	%
Total interest-bearing deposits		10,488,410			68,152		2.61	%		10,131,921			67,133		2.69	%		9,929,565			82,023		3.32	%
Borrowings		34,799			(341	)	(3.88	)%		29,606			(300	)	(4.05	)%		100,165			1,627		6.43	%
Subordinated debt, net		272,448			2,609		3.83	%		260,070			2,304		3.54	%		256,093			2,236		3.49	%
Total interest-bearing liabilities		10,795,657			70,420		2.62	%		10,421,597			69,137		2.69	%		10,285,823			85,886		3.36	%
Demand deposits		4,685,835								4,276,586								4,267,590
Other noninterest-bearing liabilities		387,166								353,665								383,447
Total liabilities		15,868,658								15,051,848								14,936,860
Shareholders’ equity		2,188,322								2,160,014								2,045,622
Total liabilities and equity	$	18,056,980							$	17,211,862							$	16,982,482
Net interest income (tax-equivalent basis) (4)				$	138,274							$	121,546							$	110,137
Reconciliation of Non-GAAP Financial Measures

Tax-equivalent basis adjustment					(1,061	)							(1,068	)							(1,089	)
Net interest income (GAAP)				$	137,213							$	120,478							$	109,048

Interest rate spread (2)(4)							2.52	%							2.28	%							1.78	%
Interest expense as a percent of average earning assets							1.73	%							1.80	%							2.25	%
Net interest margin (tax-equivalent basis) (3)(4)							3.40	%							3.17	%							2.89	%
Total cost of deposits							1.80	%							1.89	%							2.32	%

(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory tax rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax-equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax-equivalent.
(4) Non-GAAP.

TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)

	Six Months Ended								Six Months Ended
	June 30, 2025								June 30, 2024
				Interest			Average					Interest			Average
	Average			Income/			Yield/		Average			Income/			Yield/
	Balance			Expense			Rate (1)		Balance			Expense			Rate (1)
Assets:
Loans (net of unearned income and deferred costs)	$	11,918,188		$	323,586		5.48	%	$	11,425,496		$	307,186		5.41	%
Taxable investment securities		2,538,402			44,662		3.52	%		2,404,564			40,385		3.36	%
Tax-exempt investment securities		174,071			3,663		4.21	%		159,021			3,071		3.86	%
Total securities		2,712,473			48,325		3.56	%		2,563,585			43,456		3.39	%
Interest-bearing deposits		1,122,263			22,042		3.96	%		1,175,069			28,746		4.92	%
Mortgage loans held for sale		168,251			5,423		6.45	%		141,130			4,661		6.61	%
Total earning assets		15,921,175			399,376		5.06	%		15,305,280			384,049		5.05	%
Less: allowance for loan losses		(128,072	)							(127,102	)
Total nonearning assets		1,843,652								1,745,180
Total assets	$	17,636,755							$	16,923,358
Liabilities and Equity:
Interest-bearing deposits
Demand and money market	$	7,435,687		$	82,659		2.24	%	$	6,862,115		$	96,146		2.82	%
Savings		325,033			1,419		0.88	%		323,405			1,726		1.07	%
Certificates of deposit		2,550,430			51,207		4.05	%		2,649,777			62,539		4.75	%
Total interest-bearing deposits		10,311,150			135,285		2.65	%		9,835,297			160,411		3.28	%
Borrowings		32,217			(642	)	(3.96	)%		156,270			4,705		5.95	%
Subordinated debt, net		266,293			4,913		3.69	%		255,986			4,472		3.49	%
Total interest-bearing liabilities		10,609,660			139,556		2.65	%		10,247,553			169,588		3.33	%
Demand deposits		4,482,341								4,245,847
Other noninterest-bearing liabilities		370,508								387,010
Total liabilities		15,462,509								14,880,410
Shareholders’ equity		2,174,246								2,042,948
Total liabilities and equity	$	17,636,755							$	16,923,358
Net interest income (tax-equivalent basis)(4)				$	259,820							$	214,461
Reconciliation of Non-GAAP Financial Measures
Tax-equivalent basis adjustment					(2,129	)							(2,195	)
Net interest income (GAAP)				$	257,691							$	212,266

Interest rate spread (2)(4)							2.41	%							1.72	%
Interest expense as a percent of average earning assets							1.77	%							2.23	%
Net interest margin (tax-equivalent basis) (3)(4)							3.29	%							2.82	%
Total cost of deposits							1.84	%							2.29	%

(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax-equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax-equivalent.
(4) Non-GAAP.

TOWNEBANK
Consolidated Balance Sheets
(dollars in thousands, except share data)


	June 30,			December 31,
		2025			2024
	(unaudited)			(audited)
ASSETS
Cash and due from banks	$	149,462		$	108,750
Interest-bearing deposits at FRB		838,315			1,127,878
Interest-bearing deposits in financial institutions		123,911			102,847
Total Cash and Cash Equivalents		1,111,688			1,339,475
Securities available for sale, at fair value (amortized cost of $2,668,633 and $2,509,970, and allowance for credit losses of $1,520 and $1,326 at June 30, 2025 and December 31, 2024, respectively)		2,553,975			2,353,365
Securities held to maturity, at amortized cost (fair value of $196,998 and $203,883 at June 30, 2025 and December 31, 2024, respectively)		201,932			212,352
Less: allowance for credit losses		(67	)		(77	)
Securities held to maturity, net of allowance for credit losses		201,865			212,275
Other equity securities		12,248			12,100
FHLB stock		13,428			12,136
Total Securities		2,781,516			2,589,876
Mortgage loans held for sale		238,742			200,460
Loans, net of unearned income and deferred costs		12,359,673			11,459,055
Less: allowance for credit losses on loans		(134,187	)		(123,923	)
Net Loans		12,225,486			11,335,132
Premises and equipment, net		392,056			368,876
Goodwill		499,709			457,619
Other intangible assets, net		74,186			60,171
BOLI		295,434			279,802
Other assets		645,779			615,479
TOTAL ASSETS	$	18,264,596		$	17,246,890

LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand	$	4,754,340		$	4,253,053
Interest-bearing:
Demand and money market accounts		7,654,317			7,329,669
Savings		332,108			311,841
Certificates of deposit		2,587,951			2,542,735
Total Deposits		15,328,716			14,437,298
Advances from the FHLB		12,838			3,218
Subordinated debt, net		260,430			260,001
Repurchase agreements and other borrowings		20,847			33,683
Total Borrowings		294,115			296,902
Other liabilities		402,823			357,063
TOTAL LIABILITIES		16,025,654			15,091,263
Preferred stock, authorized and unissued shares – 2,000,000		—			—
Common stock, $1.667 par value: 150,000,000 shares authorized;
75,421,737 and 75,255,205 shares issued at
June 30, 2025 and December 31, 2024, respectively		125,728			125,455
Capital surplus		1,130,728			1,122,147
Retained earnings		1,057,992			1,007,775
Common stock issued to deferred compensation trust, at cost:
1,107,681 and 1,046,121 shares at June 30, 2025 and December 31, 2024, respectively		(23,977	)		(21,868	)
Deferred compensation trust		23,977			21,868
Accumulated other comprehensive income (loss)		(83,103	)		(116,045	)
TOTAL SHAREHOLDERS’ EQUITY		2,231,345			2,139,332
Noncontrolling interest		7,597			16,295
TOTAL EQUITY		2,238,942			2,155,627
TOTAL LIABILITIES AND EQUITY	$	18,264,596		$	17,246,890

TOWNEBANK
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2025			2024			2025			2024
INTEREST INCOME:
Loans, including fees	$	169,772		$	154,549		$	322,093		$	305,523
Investment securities		24,850			22,928			47,689			42,924
Interest-bearing deposits in financial institutions and federal funds sold		10,241			14,512			22,042			28,746
Mortgage loans held for sale		2,770			2,945			5,423			4,661
Total interest income		207,633			194,934			397,247			381,854
INTEREST EXPENSE:
Deposits		68,152			82,023			135,285			160,411
Advances from the FHLB		124			942			149			3,380
Subordinated debt, net		2,609			2,236			4,913			4,472
Repurchase agreements and other borrowings		(465	)		685			(791	)		1,325
Total interest expense		70,420			85,886			139,556			169,588
Net interest income		137,213			109,048			257,691			212,266
PROVISION FOR CREDIT LOSSES		6,410			(177	)		8,830			(1,054	)
Net interest income after provision for credit losses		130,803			109,225			248,861			213,320
NONINTEREST INCOME:
Residential mortgage banking income, net		13,561			13,422			23,922			23,899
Insurance commissions and related income, net		25,677			24,031			52,102			49,570
Property management income, net		15,556			14,312			35,056			31,085
Service charges on deposit accounts		3,642			3,353			6,969			6,431
Credit card merchant fees, net		1,794			1,662			3,491			3,213
Investment commissions, net		3,158			2,580			6,233			4,923
BOLI		1,992			3,238			3,864			5,080
Gain on sale of equity investment		—			—			2,000			—
Other income		4,849			3,324			8,158			5,531
Net gain on investment securities		—			—			—			74
Total noninterest income		70,229			65,922			141,795			129,806
NONINTEREST EXPENSE:
Salaries and employee benefits		78,362			71,349			153,440			142,726
Occupancy		9,791			9,717			19,124			19,139
Furniture and equipment		4,770			4,634			9,392			9,112
Amortization – intangibles		3,979			3,298			7,005			6,544
Software		6,835			7,056			13,128			13,156
Data processing		4,510			4,606			8,344			8,522
Professional fees		2,539			3,788			5,192			6,968
Advertising and marketing		3,228			3,524			7,701			8,106
FDIC and other insurance		3,032			2,133			5,893			6,491
Acquisition related expenses		18,737			19			19,157			614
Other expenses		14,882			13,860			32,825			28,197
Total noninterest expense		150,665			123,984			281,201			249,575
Income before income tax expense and noncontrolling interest		50,367			51,163			109,455			93,551
Provision for income tax expense		11,098			8,124			19,299			15,385
Net income	$	39,269		$	43,039		$	90,156		$	78,166
Net income attributable to noncontrolling interest		(432	)		(183	)		(727	)		(623	)
Net income attributable to TowneBank	$	38,837		$	42,856		$	89,429		$	77,543
Per common share information
Basic earnings	$	0.52		$	0.57		$	1.19		$	1.04
Diluted earnings	$	0.51		$	0.57		$	1.19		$	1.03
Cash dividends declared	$	0.27		$	0.25		$	0.52		$	0.50

TOWNEBANK
Consolidated Balance Sheets – Five Quarter Trend
(dollars in thousands, except share data)


	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
	(unaudited)			(unaudited)			(audited)			(unaudited)			(unaudited)
ASSETS
Cash and due from banks	$	149,462		$	126,526		$	108,750		$	131,068		$	140,028
Interest-bearing deposits at FRB		838,315			1,090,555			1,127,878			1,061,596			1,062,115
Interest-bearing deposits in financial institutions		123,911			100,249			102,847			103,400			99,303
Total Cash and Cash Equivalents		1,111,688			1,317,330			1,339,475			1,296,064			1,301,446
Securities available for sale		2,553,975			2,470,171			2,353,365			2,363,176			2,250,679
Securities held to maturity		201,932			202,018			212,352			212,422			212,488
Less: allowance for credit losses		(67	)		(68	)		(77	)		(77	)		(79	)
Securities held to maturity, net of allowance for credit losses		201,865			201,950			212,275			212,345			212,409
Other equity securities		12,248			12,223			12,100			12,681			13,566
FHLB stock		13,428			12,425			12,136			12,134			12,134
Total Securities		2,781,516			2,696,769			2,589,876			2,600,336			2,488,788
Mortgage loans held for sale		238,742			168,510			200,460			264,320			200,762
Loans, net of unearned income and deferred costs		12,359,673			11,652,746			11,459,055			11,412,518			11,451,747
Less: allowance for credit losses		(134,187	)		(126,131	)		(123,923	)		(123,191	)		(125,552	)
Net Loans		12,225,486			11,526,615			11,335,132			11,289,327			11,326,195
Premises and equipment, net		392,056			373,111			368,876			365,764			340,348
Goodwill		499,709			457,619			457,619			457,619			457,619
Other intangible assets, net		74,186			57,145			60,171			63,265			65,460
BOLI		295,434			280,344			279,802			279,325			277,434
Other assets		645,779			634,437			615,479			572,000			610,791
TOTAL ASSETS	$	18,264,596		$	17,511,880		$	17,246,890		$	17,188,020		$	17,068,843
LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand	$	4,754,340		$	4,313,553		$	4,253,053		$	4,267,628		$	4,303,773
Interest-bearing:
Demand and money market accounts		7,654,317			7,463,355			7,329,669			6,990,103			6,940,086
Savings		332,108			312,151			311,841			319,970			312,881
Certificates of deposit		2,587,951			2,519,489			2,542,735			2,785,469			2,715,848
Total Deposits		15,328,716			14,608,548			14,437,298			14,363,170			14,272,588
Advances from the FHLB		12,838			3,029			3,218			3,405			3,591
Subordinated debt, net		260,430			260,198			260,001			256,444			256,227
Repurchase agreements and other borrowings		20,847			20,875			33,683			30,970			35,351
Total Borrowings		294,115			284,102			296,902			290,819			295,169
Other liabilities		402,823			402,252			357,063			371,316			411,770
TOTAL LIABILITIES		16,025,654			15,294,902			15,091,263			15,025,305			14,979,527

Preferred stock		—			—			—			—			—
Common stock, $1.667 par value		125,728			125,679			125,455			125,139			125,090
Capital surplus		1,131,536			1,123,330			1,122,147			1,117,279			1,115,759
Retained earnings		1,057,184			1,039,518			1,007,775			985,343			961,162
Common stock issued to deferred compensation
trust, at cost		(23,977	)		(21,969	)		(21,868	)		(22,224	)		(22,756	)
Deferred compensation trust		23,977			21,969			21,868			22,224			22,756
Accumulated other comprehensive income (loss)		(83,103	)		(87,869	)		(116,045	)		(81,482	)		(129,224	)
TOTAL SHAREHOLDERS’ EQUITY		2,231,345			2,200,658			2,139,332			2,146,279			2,072,787
Noncontrolling interest		7,597			16,320			16,295			16,436			16,529
TOTAL EQUITY		2,238,942			2,216,978			2,155,627			2,162,715			2,089,316
TOTAL LIABILITIES AND EQUITY	$	18,264,596		$	17,511,880		$	17,246,890		$	17,188,020		$	17,068,843

TOWNEBANK
Consolidated Statements of Income – Five Quarter Trend (unaudited)
(dollars in thousands, except share data)


	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
INTEREST INCOME:
Loans, including fees	$	169,772		$	152,322		$	154,933		$	155,792		$	154,549
Investment securities		24,850			22,839			22,236			22,334			22,928
Interest-bearing deposits in financial institutions and federal funds sold		10,241			11,801			15,796			15,249			14,512
Mortgage loans held for sale		2,770			2,653			3,087			3,247			2,945
Total interest income		207,633			189,615			196,052			196,622			194,934
INTEREST EXPENSE:
Deposits		68,152			67,133			75,885			82,128			82,023
Advances from the FHLB		124			25			26			29			942
Subordinated debt, net		2,609			2,304			2,261			2,237			2,236
Repurchase agreements and other borrowings		(465	)		(325	)		(177	)		(54	)		685
Total interest expense		70,420			69,137			77,995			84,340			85,886
Net interest income		137,213			120,478			118,057			112,282			109,048
PROVISION FOR CREDIT LOSSES		6,410			2,420			1,606			(1,100	)		(177	)
Net interest income after provision for credit losses		130,803			118,058			116,451			113,382			109,225
NONINTEREST INCOME:
Residential mortgage banking income, net		13,561			10,361			11,272			11,786			13,422
Insurance commissions and related income, net		25,677			26,424			23,265			25,727			24,031
Property management income, net		15,556			19,500			8,186			11,221			14,312
Service charges on deposit accounts		3,642			3,327			3,289			3,117			3,353
Credit card merchant fees, net		1,794			1,697			1,486			1,830			1,662
Investment commissions, net		3,158			3,075			3,195			2,835			2,580
BOLI		1,992			1,872			4,478			1,886			3,238
Other income		4,849			5,310			3,932			3,834			3,324
Total noninterest income		70,229			71,566			59,103			62,236			65,922
NONINTEREST EXPENSE:
Salaries and employee benefits		78,362			75,078			74,399			72,123			71,349
Occupancy		9,791			9,333			9,819			9,351			9,717
Furniture and equipment		4,770			4,621			4,850			4,657			4,634
Amortization – intangibles		3,979			3,026			3,095			3,130			3,298
Software		6,835			6,293			6,870			6,790			7,056
Data processing		4,510			3,835			3,788			4,701			4,606
Professional fees		2,539			2,653			3,446			4,720			3,788
Advertising and marketing		3,228			4,472			3,359			4,162			3,524
Other expenses		36,651			21,225			17,815			17,266			16,012
Total noninterest expense		150,665			130,536			127,441			126,900			123,984
Income before income tax expense and noncontrolling interest		50,367			59,088			48,113			48,718			51,163
Provision for income tax expense		11,098			8,201			6,672			5,592			8,124
Net income		39,269			50,887			41,441			43,126			43,039
Net income attributable to noncontrolling interest		(432	)		(295	)		(176	)		(177	)		(183	)
Net income attributable to TowneBank	$	38,837		$	50,592		$	41,265		$	42,949		$	42,856
Per common share information
Basic earnings	$	0.52		$	0.67		$	0.55		$	0.57		$	0.57
Diluted earnings	$	0.51		$	0.67		$	0.55		$	0.57		$	0.57
Basic weighted average shares outstanding		75,240,678			75,149,668			75,034,688			74,940,827			74,925,877
Diluted weighted average shares outstanding		75,540,822			75,527,713			75,318,578			75,141,661			75,037,955
Cash dividends declared	$	0.27		$	0.25		$	0.25		$	0.25		$	0.25

TOWNEBANK
Banking Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Six Months Ended						Increase/(Decrease)
	June 30,						March 31,			June 30,						YTD 2025 over 2024
		2025			2024			2025			2025			2024		Amount			Percent
Revenue
Net interest income	$	136,325		$	108,029		$	119,584		$	255,909		$	210,711		$	45,198		21.45	%
Service charges on deposit accounts		3,642			3,353			3,327			6,969			6,431			538		8.37	%
Credit card merchant fees		1,794			1,662			1,697			3,491			3,213			278		8.65	%
Investment commissions, net		3,158			2,580			3,075			6,233			4,923			1,310		26.61	%
Other income		5,750			4,839			6,495			12,244			8,268			3,976		48.09	%
Subtotal		14,344			12,434			14,594			28,937			22,835			6,102		26.72	%
Net gain/(loss) on investment securities		—			—			—			—			74			(74	)	(100.00	)%
Total noninterest income		14,344			12,434			14,594			28,937			22,909			6,028		26.31	%
Total revenue		150,669			120,463			134,178			284,846			233,620			51,226		21.93	%

Provision for credit losses		6,212			(170	)		2,367			8,579			(1,146	)		9,725		(848.60	)%

Expenses
Salaries and employee benefits		52,850			46,640			49,684			102,534			93,113			9,421		10.12	%
Occupancy		7,342			7,194			6,979			14,321			14,254			67		0.47	%
Furniture and equipment		4,081			3,810			3,808			7,889			7,458			431		5.78	%
Amortization of intangible assets		1,969			1,117			981			2,951			2,280			671		29.43	%
Software		4,427			4,422			4,022			8,449			8,476			(27	)	(0.32	)%
Data processing		2,840			2,609			2,609			5,448			5,157			291		5.64	%
Accounting and professional fees		1,934			3,146			2,010			3,944			5,805			(1,861	)	(32.06	)%
Advertising and marketing		1,883			1,610			2,897			4,780			4,618			162		3.51	%
FDIC and other insurance		2,676			1,861			2,590			5,267			5,983			(716	)	(11.97	)%
Acquisition related		17,256			—			420			17,676			147			17,529		N/M
Other expenses		11,276			9,939			11,971			23,246			20,355			2,891		14.20	%
Total expenses		108,534			82,348			87,971			196,505			167,646			28,859		17.21	%
Income before income tax, corporate allocation and noncontrolling interest		35,923			38,285			43,840			79,762			67,120			12,642		18.83	%
Corporate allocation		1,535			1,232			1,396			2,931			2,301			630		27.38	%
Income before income tax provision and noncontrolling interest		37,458			39,517			45,236			82,693			69,421			13,272		19.12	%
Provision for income tax expense		7,814			5,130			4,681			12,495			9,235			3,260		35.30	%
Net income		29,644			34,387			40,555			70,198			60,186			10,012		16.64	%
Noncontrolling interest		(124	)		(58	)		42			(82	)		62			(144	)	(232.26	)%
Net income attributable to TowneBank	$	29,520		$	34,329		$	40,597		$	70,116		$	60,248		$	9,868		16.38	%

Efficiency ratio ^(non-GAAP)		70.73	%		67.43	%		64.83	%		67.95	%		70.81	%		(2.86	)%	(4.04	)%

TOWNEBANK
Mortgage Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Six Months Ended						Increase/(Decrease)
	June 30,						March 31,			June 30,						YTD 2025 over 2024
		2025			2024			2025			2025			2024		Amount			Percent
Revenue
Residential mortgage brokerage income, net	$	14,083		$	13,997		$	10,580		$	24,664		$	24,795		$	(131	)	(0.53	)%
Income (loss) from unconsolidated subsidiary		83			68			42			125			97			28		28.87	%
Net interest and other income		1,095			1,230			1,110			2,205			1,999			206		10.31	%
Total revenue		15,261			15,295			11,732			26,994			26,891			103		0.38	%

Provision for credit losses		198			(7	)		53			251			92			159		172.83	%

Expenses
Salaries and employee benefits		7,315			6,803			7,031			14,346			13,459			887		6.59	%
Occupancy		1,098			1,062			939			2,036			2,124			(88	)	(4.14	)%
Furniture and equipment		151			149			195			346			327			19		5.81	%
Amortization of intangible assets		—			144			—			—			287			(287	)	(100.00	)%
Software		790			876			727			1,517			1,663			(146	)	(8.78	)%
Data processing		198			170			163			360			318			42		13.21	%
Accounting and professional fees		157			142			226			383			376			7		1.86	%
Advertising and marketing		420			448			389			809			830			(21	)	(2.53	)%
FDIC and other insurance		117			94			96			213			196			17		8.67	%
Acquisition related		1,481			—			—			1,481			—			1,481		100.00	%
Other expenses		2,728			2,535			2,461			5,191			4,757			434		9.12	%
Total expenses		14,455			12,423			12,227			26,682			24,337			2,345		9.64	%

Income before income tax, corporate allocation and noncontrolling interest		608			2,879			(548	)		61			2,462			(2,401	)	(97.52	)%
Corporate allocation		(519	)		(490	)		(350	)		(869	)		(838	)		(31	)	3.70	%
Income before income tax provision and noncontrolling interest		89			2,389			(898	)		(808	)		1,624			(2,432	)	(149.75	)%
Provision for income tax expense		(41	)		482			(240	)		(281	)		280			(561	)	(200.36	)%
Net income		130			1,907			(658	)		(527	)		1,344			(1,871	)	(139.21	)%
Noncontrolling interest		(308	)		(411	)		(117	)		(425	)		(526	)		101		19.20	%
Net income attributable to TowneBank	$	(178	)	$	1,496		$	(775	)	$	(952	)	$	818		$	(1,770	)	(216.38	)%

Efficiency ratio excluding gain on equity investment ^(non-GAAP)		94.72	%		80.28	%		104.22	%		98.84	%		89.44	%		9.40	%	10.51	%

TOWNEBANK
Resort Property Management Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Six Months Ended						Increase/(Decrease)
	June 30,						March 31,			June 30,						YTD 2025 over 2024
		2025			2024			2025			2025			2024		Amount			Percent
Revenue
Property management fees, net	$	15,556		$	14,312		$	19,500			35,056			31,085			3,971		12.77	%
Net interest and other income		24			85			13			37			102			(65	)	(63.73	)%
Total revenue		15,580			14,397			19,513			35,093			31,187			3,906		12.52	%

Expenses
Salaries and employee benefits		5,250			5,567			5,448			10,698			11,099			(401	)	(3.61	)%
Occupancy		574			749			614			1,189			1,257			(68	)	(5.41	)%
Furniture and equipment		385			447			405			791			863			(72	)	(8.34	)%
Amortization of intangible assets		637			637			637			1,273			1,170			103		8.80	%
Software		877			923			859			1,736			1,531			205		13.39	%
Data processing		1,339			1,720			944			2,283			2,822			(539	)	(19.10	)%
Accounting and professional fees		236			320			126			362			472			(110	)	(23.31	)%
Advertising and marketing		750			1,333			892			1,641			2,371			(730	)	(30.79	)%
FDIC and other insurance		113			74			67			180			109			71		65.14	%
Acquisition related		—			19			—			—			466			(466	)	(100.00	)%
Other expenses		427			482			2,613			3,040			1,424			1,616		113.48	%
Total expenses		10,588			12,271			12,605			23,193			23,584			(391	)	(1.66	)%

Income before income tax, corporate allocation and noncontrolling interest		4,992			2,126			6,908			11,900			7,603			4,297		56.52	%
Corporate allocation		(316	)		—			(320	)		(636	)		—			(636	)	N/M
Income before income tax provision and noncontrolling interest		4,676			2,126			6,588			11,264			7,603			3,661		48.15	%
Provision for income tax expense		1,227			681			1,629			2,856			2,039			817		40.07	%
Net income		3,449			1,445			4,959			8,408			5,564			2,844		51.11	%
Noncontrolling interest		—			286			(220	)		(220	)		(159	)		(61	)	(38.36	)%
Net income attributable to TowneBank	$	3,449		$	1,731		$	4,739		$	8,188		$	5,405		$	2,783		51.49	%

Efficiency ratio excluding gain on equity investment ^(non-GAAP)		63.87	%		80.81	%		61.33	%		62.46	%		71.87	%		(9.41	)%	(13.09	)%

TOWNEBANK
Insurance Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Six Months Ended						Increase/(Decrease)
	June 30,						March 31,			June 30,						YTD 2025 over 2024
		2025			2024			2025			2025			2024		Amount			Percent
Commission and fee income
Property and casualty	$	23,306		$	22,225		$	23,322		$	46,629		$	42,947		$	3,682		8.57	%
Employee benefits		4,596			4,404			4,725			9,320			9,230			90		0.98	%
Specialized benefit services		—			—			—			—			9			(9	)	(100.00	)%
Total commissions and fees		27,902			26,629			28,047			55,949			52,186			3,763		7.21	%

Contingency and bonus revenue		3,034			2,951			3,620			6,654			7,454			(800	)	(10.73	)%
Other income		4			6			4			8			17			(9	)	(52.94	)%
Total revenue		30,940			29,586			31,671			62,611			59,657			2,954		4.95	%

Employee commission expense		5,008			4,771			5,050			10,058			9,283			775		8.35	%
Revenue, net of commission expense		25,932			24,815			26,621			52,553			50,374			2,179		4.33	%

Salaries and employee benefits		12,947			12,339			12,915			25,862			25,055			807		3.22	%
Occupancy		777			712			801			1,578			1,504			74		4.92	%
Furniture and equipment		153			228			213			366			464			(98	)	(21.12	)%
Amortization of intangible assets		1,373			1,400			1,408			2,781			2,807			(26	)	(0.93	)%
Software		741			835			685			1,426			1,486			(60	)	(4.04	)%
Data processing		133			107			119			253			225			28		12.44	%
Accounting and professional fees		212			180			291			503			315			188		59.68	%
Advertising and marketing		175			133			294			471			287			184		64.11	%
FDIC and other insurance		126			104			107			233			203			30		14.78	%
Acquisition related		—			—			—			—			1			(1	)	(100.00	)%
Other expenses		451			904			900			1,348			1,661			(313	)	(18.84	)%
Total operating expenses		17,088			16,942			17,733			34,821			34,008			813		2.39	%
Income before income tax, corporate allocation and noncontrolling interest		8,844			7,873			8,888			17,732			16,366			1,366		8.35	%
Corporate allocation		(700	)		(742	)		(726	)		(1,426	)		(1,463	)		37		2.53	%
Income before income tax provision and noncontrolling interest		8,144			7,131			8,162			16,306			14,903			1,403		9.41	%
Provision for income tax expense		2,098			1,831			2,131			4,229			3,831			398		10.39	%
Net income		6,046			5,300			6,031			12,077			11,072			1,005		9.08	%
Noncontrolling interest		—			—			—			—			—			—		—	%
Net income attributable to TowneBank	$	6,046		$	5,300		$	6,031		$	12,077		$	11,072		$	1,005		9.08	%

Provision for income taxes		2,098			1,831			2,131			4,229			3,831			398		10.39	%
Depreciation, amortization and interest expense		1,489			1,528			1,527			3,016			3,083			(67	)	(2.17	)%
EBITDA ^(non-GAAP)	$	9,633		$	8,659		$	9,689		$	19,322		$	17,986		$	1,336		7.43	%

Efficiency ratio ^(non-GAAP)		60.60	%		62.63	%		61.32	%		60.97	%		61.94	%		(0.97	)%	(1.57	)%

TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)

	Three Months Ended									Six Months Ended
	June 30,			June 30,			March 31,			June 30,			June 30,
		2025			2024			2025			2025			2024

Return on average assets (GAAP)		0.86	%		1.01	%		1.19	%		1.02	%		0.92	%
Impact of excluding average goodwill and other intangibles and amortization		0.10	%		0.10	%		0.10	%		0.10	%		0.09	%
Return on average tangible assets (non-GAAP)		0.96	%		1.11	%		1.29	%		1.12	%		1.01	%

Return on average equity (GAAP)		7.12	%		8.43	%		9.50	%		8.29	%		7.63	%
Impact of excluding average goodwill and other intangibles and amortization		3.27	%		3.60	%		3.58	%		3.44	%		3.32	%
Return on average tangible equity (non-GAAP)		10.39	%		12.03	%		13.08	%		11.73	%		10.95	%

Return on average common equity (GAAP)		7.14	%		8.49	%		9.57	%		8.34	%		7.69	%
Impact of excluding average goodwill and other intangibles and amortization		3.30	%		3.67	%		3.64	%		3.48	%		3.38	%
Return on average tangible common equity (non-GAAP)		10.44	%		12.16	%		13.21	%		11.82	%		11.07	%

Book value (GAAP)	$	29.58		$	27.62		$	29.19		$	29.58		$	27.62
Impact of excluding average goodwill and other intangibles and amortization		(7.60	)		(6.97	)		(6.83	)		(7.60	)		(6.97	)
Tangible book value (non-GAAP)	$	21.98		$	20.65		$	22.36		$	21.98		$	20.65

Efficiency ratio (GAAP)		72.63	%		70.86	%		67.97	%		70.39	%		72.96	%
Impact of exclusions		(1.92	)%		(1.88	)%		(0.87	)%		(1.41	)%		(1.90	)%
Efficiency ratio (non-GAAP)		70.71	%		68.98	%		67.10	%		68.98	%		71.06	%

Average assets (GAAP)	$	18,056,980		$	16,982,482		$	17,211,862		$	17,636,755		$	16,923,358
Less: average goodwill and intangible assets		567,250			525,122			516,661			542,095			523,899
Average tangible assets (non-GAAP)	$	17,489,730		$	16,457,360		$	16,695,201		$	17,094,660		$	16,399,459

Average equity (GAAP)	$	2,188,322		$	2,045,622		$	2,160,014		$	2,174,246		$	2,042,948
Less: average goodwill and intangible assets		567,250			525,122			516,661			542,095			523,899
Average tangible equity (non-GAAP)	$	1,621,072		$	1,520,500		$	1,643,353		$	1,632,151		$	1,519,049

Average common equity (GAAP)	$	2,180,687		$	2,029,150		$	2,143,806		$	2,162,348		$	2,026,659
Less: average goodwill and intangible assets		567,250			525,122			516,661			542,095			523,899
Average tangible common equity (non-GAAP)	$	1,613,437		$	1,504,028		$	1,627,145		$	1,620,253		$	1,502,760

Net income (GAAP)	$	38,837		$	42,856		$	50,592		$	89,429		$	77,543
Amortization of intangibles, net of tax		3,143			2,605			2,391			5,534			5,170
Tangible net income (non-GAAP)	$	41,980		$	45,461		$	52,983		$	94,963		$	82,713

Total revenue (GAAP)	$	207,442		$	174,970		$	192,044		$	399,486		$	342,072
Net (gain)/loss on investment securities/equity investments		—			—			(2,000	)		(2,000	)		(74	)
Total revenue for efficiency calculation (non-GAAP)	$	207,442		$	174,970		$	190,044		$	397,486		$	341,998

Noninterest expense (GAAP)	$	150,665		$	123,984		$	130,536		$	281,201		$	249,575
Less: amortization of intangibles		3,979			3,298			3,026			7,005			6,544
Noninterest expense net of amortization (non-GAAP)	$	146,686		$	120,686		$	127,510		$	274,196		$	243,031

TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)


Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Net income available to common shareholders (GAAP)	$	38,837		$	50,592		$	41,265		$	42,949		$	42,856

Adjustments
Plus: Acquisition-related expenses, net of tax		15,291			389			250			460			18
Plus: Initial provision for acquired loans, net of tax		4,926			—			—			—			—
Plus: FDIC special assessment, net of tax		—			—			—			—			(310	)
Plus: Resort Property Management deferred tax adjustment for repurchase of noncontrolling interests		2,286			—			—			—			—
Less: Gain on sale of equity investments, net of noncontrolling interest		—			—			(99	)		(16	)		—
Total adjustments, net of taxes		22,503			389			151			444			(292	)
Core operating earnings, excluding certain items affecting comparability (non-GAAP)	$	61,340		$	50,981		$	41,416		$	43,393		$	42,564
Annualized interest impact of Series IV Notes, net of tax		42			42			—			—			—
Core net income for diluted EPS (non-GAAP)	$	61,382		$	51,023		$	41,416		$	43,393		$	42,564

Weighted average diluted shares		75,540,822			75,527,713			75,318,578			75,141,661			75,037,955
Diluted EPS (GAAP)	$	0.51		$	0.67		$	0.55		$	0.57		$	0.57
Diluted EPS, excluding certain items affecting comparability (non-GAAP)	$	0.81		$	0.68		$	0.55		$	0.58		$	0.57
Average assets	$	18,056,980		$	17,211,862		$	17,349,128		$	17,028,141		$	16,982,482
Average tangible equity	$	1,621,072		$	1,643,353		$	1,628,420		$	1,582,830		$	1,520,500
Average tangible common equity	$	1,613,437		$	1,627,145		$	1,612,087		$	1,566,455		$	1,504,028
Return on average assets, excluding certain items affecting comparability (non-GAAP)		1.36	%		1.20	%		0.95	%		1.01	%		1.01	%
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)		15.95	%		13.17	%		10.72	%		11.53	%		11.95	%
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)		16.03	%		13.30	%		10.82	%		11.65	%		12.08	%
Efficiency ratio, excluding certain items affecting comparability (non-GAAP)		61.68	%		66.87	%		70.12	%		70.67	%		68.96	%

TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)


Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability	Six Months Ended
	June 30,			June 30,
		2025			2024
Net income (GAAP)	$	89,429		$	77,543

Adjustments
Plus: Acquisition-related expenses, net of tax		15,680			582
Plus: FDIC special assessment, net of tax		—			711
Plus: Initial provision for acquired loans, net of tax		4,926			—
Plus: Resort Property Management deferred tax adjustment for repurchase of noncontrolling interests		2,286			—
Total adjustments, net of taxes		22,892			1,293
Core operating earnings, excluding certain items affecting comparability (non-GAAP)	$	112,321		$	78,836
Annualized interest impact of Series IV Notes, net of tax		84			—
Core net income for diluted EPS (non-GAAP)	$	112,405		$	78,836
Weighted average diluted shares		75,535,484			75,002,469
Diluted EPS (GAAP)	$	1.19		$	1.03
Diluted EPS, excluding certain items affecting comparability (non-GAAP)	$	1.49		$	1.05
Average assets	$	17,636,755		$	16,923,358
Average tangible equity	$	1,632,151		$	1,519,049
Average tangible common equity	$	1,620,253		$	1,502,760
Return on average assets, excluding certain items affecting comparability (non-GAAP)		1.28	%		0.94	%
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)		14.56	%		11.12	%
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)		14.67	%		11.24	%
Efficiency ratio, excluding certain items affecting comparability (non-GAAP)		64.16	%		70.88	%

MIL-OSI: SOUTHERN MISSOURI BANCORP REPORTS PRELIMINARY RESULTS FOR FOURTH QUARTER OF FISCAL 2025; DECLARES QUARTERLY DIVIDEND OF $0.25 PER COMMON SHARE; CONFERENCE CALL SCHEDULED FOR THURSDAY, JULY 24, AT 9:30 AM CENTRAL TIME

Source: GlobeNewswire (MIL-OSI)

Poplar Bluff, Missouri, July 23, 2025 (GLOBE NEWSWIRE) — Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the fourth quarter of fiscal 2025 of $15.8 million, an increase of $2.3 million or 16.7%, as compared to the same period of the prior fiscal year. The increase was primarily attributable to higher net interest income and lower provision for income taxes. This was partially offset by higher provision for credit loss (PCL), noninterest expense, and lower noninterest income. Preliminary net income was $1.39 per fully diluted common share for the fourth quarter of fiscal 2025, an increase of $0.20 as compared to the $1.19 per fully diluted common share reported for the same period of the prior fiscal year. For the full fiscal year 2025, preliminary net income of $58.6 million was an increase of $8.4 million as compared to fiscal 2024, while diluted earnings per share for fiscal 2025 were $5.18, an increase of $0.76 as compared to the $4.42 per fully diluted common share for fiscal 2024.

Highlights for the fourth quarter of fiscal 2025:

Earnings per common share (diluted) were $1.39, up $0.20, or 16.8%, as compared to the same quarter a year ago, and remained unchanged from the third quarter of fiscal 2025, the linked quarter.
Annualized return on average assets (ROA) was 1.27%, while annualized return on average common equity (ROE) was 11.8%, as compared to 1.17% and 11.2%, respectively, in the same quarter a year ago, and 1.27% and 12.1%, respectively, in the third quarter of fiscal 2025, the linked quarter.
Net interest margin for the quarter was 3.46%, up from the 3.25% reported for the year ago period, and up from 3.39% reported for the third quarter of fiscal 2025, the linked quarter. Net interest income increased $5.2 million, or 14.9% as compared to the same quarter a year ago, and increased $854,000, or 2.2% as compared to the third quarter of fiscal 2025, the linked quarter.
Noninterest income was down 6.3% for the quarter, as compared to the year ago period, but up 9.2% as compared to the third quarter of fiscal 2025, the linked quarter. The decrease compared to the year ago period was primarily due to tax credit benefits recorded in the prior fiscal year as noninterest income, but recognized in the current period as a direct reduction from the provision for income taxes under the proportional amortization method of ASU 2023-02. In addition, the Company realized a modest negative adjustment to the value of mortgage servicing rights. The increase in non-interest income compared to the linked quarter was largely due to additional card network fees based on volume incentives totaling $537,000.
Gross loan balances increased by $76.2 million during the fourth quarter, and increased by $249.9 million, or 6.5% during all of fiscal 2025.
PCL was $2.5 million during the fourth quarter of fiscal 2025, a $1.6 million increase from both the year ago period and the third quarter of fiscal 2025, the linked quarter. The increase was primarily driven by higher net charge-offs, largely stemming from a previously identified non-performing special-purpose commercial real estate credit relationship disclosed in the prior quarter and to support loan growth. See “Balance Sheet Summary” below for more detailed information regarding this credit relationship.
Deposit balances increased by $19.9 million during the fourth quarter, and increased by $338.3 million, or 8.6% during all of fiscal 2025.
Cash equivalents and time deposits balances decreased by $34.0 million during the fourth quarter, and increased $131.7 million during all of fiscal 2025, which was driven by deposit growth and earnings retention after cash dividends paid outpacing gross loan and other asset growth.
Tangible book value per share was $41.87, having increased by $5.19, or 14.1%, as compared to June 30, 2024.

Dividend Declared:

The Board of Directors, on July 22, 2025, declared a quarterly cash dividend on common stock of $0.25 per share, payable August 29, 2025, to stockholders of record at the close of business on August 15, 2025, marking the 125th consecutive quarterly dividend since the inception of the Company. The dividend represents an increase of $0.02 per share, or 8.7%, as compared to the previous quarterly dividend payment. The Board of Directors and management believe the payment of a quarterly cash dividend enhances stockholder value and demonstrates our commitment to and confidence in our future prospects.

Conference Call:

The Company will host a conference call to review the information provided in this press release on Thursday, July 24, 2025, at 9:30 a.m., central time. The call will be available live to interested parties by calling 1-833-470-1428 in the United States and from all other locations. Participants should use participant access code 617584. Telephone playback will be available beginning one hour following the conclusion of the call through July 29, 2025. The playback may be accessed by dialing 1-866-813-9403, and using the conference passcode 612450.

Balance Sheet Summary:

The Company experienced balance sheet growth in fiscal 2025, with total assets of $5.0 billion at June 30, 2025, reflecting an increase of $415.3 million, or 9.0%, as compared to June 30, 2024. Growth primarily reflected an increase in net loans receivable, cash equivalents, and available-for-sale (AFS) securities.

Cash equivalents and time deposits were $193.1 million at June 30, 2025, an increase of $131.7 million, or 214.5%, as compared to June 30, 2024. Compared to March 31, 2025, the linked quarter, cash equivalents decreased $34.0 million, or 15.0%, primarily utilized to fund loan growth, which was partially offset by deposit growth and earnings retention after cash dividends paid. AFS securities were $460.8 million at June 30, 2025, up $32.9 million, or 7.7%, as compared to June 30, 2024.

Loans, net of the allowance for credit losses (ACL), were $4.0 billion at June 30, 2025, an increase of $250.8 million, or 6.6%, as compared to June 30, 2024. Gross loans increased by $249.9 million, while the ACL attributable to outstanding loan balances decreased $887,000, or 1.7%, as compared to June 30, 2024. The increase in loan balances was attributable to growth in residential real estate loans, commercial and industrial loans, drawn construction loan balances, multi-family real estate loans, and agricultural production draws. This was partially offset by payoffs and paydowns in non-owner occupied commercial real estate and consumer loans. The table below illustrates changes in loan balances by type over recent periods:


Summary Loan Data as of:	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,
(dollars in thousands)	2025		2025		2024		2024		2024

1-4 residential real estate	$	991,553	$	978,908	$	967,196	$	942,916	$	925,397
Non-owner occupied commercial real estate		888,317		897,125		882,484		903,678		899,770
Owner occupied commercial real estate		442,984		440,282		435,392		438,030		427,476
Multi-family real estate		422,758		405,445		376,081		371,177		384,564
Construction and land development		332,405		323,499		393,388		351,481		290,541
Agriculture real estate		244,983		247,027		239,912		239,787		232,520
Total loans secured by real estate		3,323,000		3,292,286		3,294,453		3,247,069		3,160,268

Commercial and industrial		510,259		488,116		484,799		457,018		450,147
Agriculture production		206,128		186,058		188,284		200,215		175,968
Consumer		55,387		54,022		56,017		58,735		59,671
All other loans		5,102		3,216		3,628		3,699		3,981
Total loans		4,099,876		4,023,698		4,027,181		3,966,736		3,850,035

Deferred loan fees, net		(178)		(189)		(202)		(218)		(232)
Gross loans		4,099,698		4,023,509		4,026,979		3,966,518		3,849,803
Allowance for credit losses		(51,629)		(54,940)		(54,740)		(54,437)		(52,516)
Net loans	$	4,048,069	$	3,968,569	$	3,972,239	$	3,912,081	$	3,797,287

Loans anticipated to fund in the next 90 days totaled $224.1 million at June 30, 2025, as compared to $163.3 million at March 31, 2025, and $157.1 million at June 30, 2024.

The Bank’s concentration in non-owner occupied commercial real estate loans is estimated at 301.9% of Tier 1 capital and ACL at June 30, 2025, as compared to 317.5% as of June 30, 2024, with these loans representing 40.1% of total loans at June 30, 2025. Multi-family residential real estate, hospitality (hotels/restaurants), care facilities, strip centers, retail stand-alone, and storage units are the most common collateral types within the non-owner occupied commercial real estate loan portfolio. The multi-family residential real estate loan portfolio commonly includes loans collateralized by properties currently in the low-income housing tax credit (LIHTC) program or that have exited the program. The hospitality and retail stand-alone segments include primarily franchised businesses; care facilities consisting mainly of skilled nursing and assisted living centers; and strip centers, which can be defined as non-mall shopping centers with a variety of tenants. Non-owner occupied office property types included 33 loans totaling $24.3 million, or 0.59% of total loans at June 30, 2025, none of which were adversely classified as of June 30, 2025, and are generally comprised of smaller spaces with diverse tenants. The Company continues to monitor its commercial real estate concentration and the individual segments closely.

Nonperforming loans (NPLs) were $23.0 million, or 0.56% of gross loans, at June 30, 2025, as compared to $6.7 million, or 0.17% of gross loans, at June 30, 2024. Nonperforming assets (NPAs) were $23.7 million, or 0.47% of total assets, at June 30, 2025, as compared to $10.6 million, or 0.23% of total assets, at June 30, 2024. The rise in NPAs reflects an increase in NPLs, which was partially offset by a decrease in other real estate owned. Compared to March 31, 2025, the linked quarter, NPAs declined $104,000. The year-over-year increase in NPLs was primarily driven by several commercial relationships added during the third and fourth quarters of fiscal 2025, along with the addition of other smaller loans throughout the year, partially offset by net charge-offs. In the fourth quarter, a $5.7 million construction loan related to the development of a senior living facility was placed on nonaccrual status. As previously disclosed in the third quarter, three commercial loans with common guarantors, which are primarily secured by two non-owner-occupied, special-purpose commercial properties located in different states, were also added to NPLs. These properties, which were previously leased to a single tenant that has since become insolvent, are now vacant. Some guarantors are shared across these three loans. The total balance of these three loans at fiscal year end 2025 was $6.2 million, after recognition of $3.8 million charge-offs in the current quarter that were previously reserved for in the linked quarter.

The ACL at June 30, 2025, totaled $51.6 million, representing 1.26% of gross loans and 224% of nonperforming loans, as compared to an ACL of $52.5 million, representing 1.36% of gross loans and 786% of nonperforming loans, at June 30, 2024. The Company has estimated its expected credit losses as of June 30, 2025, under ASC 326-20, and management believes the ACL as of that date was adequate based on that estimate. There remains, however, significant uncertainty as borrowers adjust to relatively high market interest rates, although the Federal Reserve has reduced short-term rates somewhat during this fiscal year. The decrease in the ACL was primarily attributable to net charge-offs, which reduced the required reserves for individually evaluated loans, as well as a decline in certain qualitative adjustments relevant to assessing expected credit losses. This decrease was partially offset by higher required reserves for pooled loans, reflecting management’s updated view of a deteriorating economic outlook and an increase in modeled loss drivers compared to the prior assessment as of June 30, 2024. Additional provisions were also recorded to support loan growth and overdraft exposures during fiscal year 2025. As a percentage of average loans outstanding, the Company recorded net charge offs of 0.53% (annualized) during the current quarter, as compared to 0.06% for the same quarter of the prior fiscal year. In the three-month period ended June 30, 2025, net charge offs were $5.3 million, with the increase from prior periods primarily attributable to the $3.8 million special-purpose CRE charge off noted above, and a $742,000 commercial and industrial charge off related to a commercial contractor. For fiscal year 2025, net charge offs as a percentage of average loans were 0.17%, as compared to 0.05% for fiscal year 2024.

Total liabilities were $4.5 billion at June 30, 2025, an increase of $359.3 million, or 8.7%, as compared to June 30, 2024. Growth primarily reflected increases in total deposits, other liabilities, accrued interest and income taxes payable, and securities sold under agreement to repurchase.

Deposits were $4.3 billion at June 30, 2025, an increase of $338.3 million, or 8.6%, as compared to June 30, 2024. The deposit portfolio saw increases in certificates of deposit and savings accounts, as customers remained willing to move balances into special rate time deposits and high yield savings accounts in the higher rate environment. Public unit balances totaled $550.8 million at June 30, 2025, a decrease of $43.8 million compared to June 30, 2024, mostly due to the Company losing the bid to retain a larger local public unit depositor early in the fiscal year. Brokered deposits totaled $233.6 million at June 30, 2025, an increase of $61.9 million as compared to June 30, 2024. The average loan-to-deposit ratio for the fourth quarter of fiscal 2025 was 94.5%, as compared to 96.3% for the same period of the prior fiscal year. The period end loan-to-deposit ratios were 95.8% and 97.6% as of June 30, 2024, and 2025, respectively. The table below illustrates changes in deposit balances by type over recent periods:


Summary Deposit Data as of:	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,
(dollars in thousands)	2025		2025		2024		2024		2024

Non-interest bearing deposits	$	508,110	$	513,418	$	514,199	$	503,209	$	514,107
NOW accounts		1,132,298		1,167,296		1,211,402		1,128,917		1,239,663
MMDAs – non-brokered		329,837		345,810		347,271		320,252		334,774
Brokered MMDAs		1,414		2,013		3,018		12,058		2,025
Savings accounts		661,115		626,175		573,291		556,030		517,084
Total nonmaturity deposits		2,632,774		2,654,712		2,649,181		2,520,466		2,607,653

Certificates of deposit – non-brokered		1,414,945		1,373,109		1,310,421		1,258,583		1,163,650
Brokered certificates of deposit		233,649		233,561		251,025		261,093		171,756
Total certificates of deposit		1,648,594		1,606,670		1,561,446		1,519,676		1,335,406

Total deposits	$	4,281,368	$	4,261,382	$	4,210,627	$	4,040,142	$	3,943,059

Public unit nonmaturity accounts	$	435,632	$	472,010	$	482,406	$	447,638	$	541,445
Public unit certificates of deposit		115,204		103,741		83,506		62,882		53,144
Total public unit deposits	$	550,836	$	575,751	$	565,912	$	510,520	$	594,589

FHLB advances were $104.1 million at June 30, 2025, an increase of $2.0 million, or 2.0%, as compared to June 30, 2024.

The Company’s stockholders’ equity was $544.7 million at June 30, 2025, an increase of $55.9 million, or 11.4%, as compared to June 30, 2024. The increase was attributable primarily to earnings retained after cash dividends paid, in combination with a $6.1 million reduction in accumulated other comprehensive losses (AOCL) as the market value of the Company’s investments appreciated due to the decrease in market interest rates. The AOCL totaled $11.4 million at June 30, 2025, as compared to $17.5 million at June 30, 2024. The Company does not hold any securities classified as held-to-maturity.

Quarterly Income Statement Summary:

The Company’s net interest income for the three-month period ended June 30, 2025, was $40.3 million, an increase of $5.2 million, or 14.9%, as compared to the same period of the prior fiscal year. The increase was attributable to a 7.9% increase in the average balance of interest-earning assets in the current three-month period compared to the same period a year ago, and an increase of 21 basis points in the net interest margin, from 3.25% to 3.46%. The primary driver of the net interest margin expansion, compared to the year ago period, was the cost of interest-bearing liabilities decreasing 20 basis points, while the yield on interest-earning assets increased seven basis points. The overall increase in spread of 27 basis points was partially offset by a lower level of average interest-earning assets to average interest-bearing liabilities totaling 120.6% at June 30, 2025, down 1.1 percentage points compared to the year ago period, due to stronger deposit growth.

Loan discount accretion and deposit premium amortization related to the November 2018 acquisition of First Commercial Bank, the May 2020 acquisition of Central Federal Savings & Loan Association, the February 2022 merger of FortuneBank, and the January 2023 acquisition of Citizens Bank & Trust resulted in $612,000 in net interest income for the three-month period ended June 30, 2025, as compared to $1.1 million in net interest income for the same period a year ago. Combined, this component of net interest income contributed five basis points to net interest margin in the three-month period ended June 30, 2025, as compared to a ten basis point contribution for the same period of the prior fiscal year, and as compared to a 13-basis point contribution in the linked quarter, ended March 31, 2025, when net interest margin was 3.39%.

The Company recorded a PCL of $2.5 million in the three-month period ended June 30, 2025, as compared to a PCL of $900,000 in the same period of the prior fiscal year. The current period PCL was the result of a $2.0 million provision attributable to the ACL for loan balances outstanding and a $475,000 provision attributable to the allowance for off-balance sheet credit exposures. The increase was primarily attributable to providing for net charge-offs and to support loan growth, in addition to an increase in unfunded balances and an increase in the expected funding rate on available credit.

The Company’s noninterest income for the three-month period ended June 30, 2025, was $7.3 million, a decrease of $487,000, or 6.3%, as compared to the same period of the prior fiscal year. The decrease was attributable to lower other noninterest income and loan servicing fees. The decrease in other noninterest income was associated with the change in accounting for realization of tax credits, as the Company has adopted the proportional amortization method under ASU 2023-02, which results in a direct reduction to the provision for income taxes in fiscal 2025. The tax credit benefit recognized in other noninterest income in the three-month period ended June 2024 was $675,000. Loan servicing fees were negatively impacted by the recognition of a change in the fair value of mortgage servicing rights, which in the fourth quarter of fiscal 2025 resulted in a negative adjustment of $108,000, as compared to a benefit of $131,000 in the same period a year ago, due to changes in market rates and prepayment assumptions. These decreases as compared to the prior year period were partially offset by increases in other loan fees attributable to increased loan originations and higher deposit account charges and related fees primarily attributable to an increase in non-sufficient fund activity and an increase in maintenance and activity fees collected.

Noninterest expense for the three-month period ended June 30, 2025, was $26.0 million, an increase of $974,000, or 3.9%, as compared to the same period of the prior fiscal year. The increase as compared to the year-ago period was primarily attributable to increases in legal and professional fees, data processing expense, and other noninterest expense. The Company experienced elevated legal and professional fees associated with consulting costs to negotiate a new contract with a large vendor totaling $425,000. Data processing expense increased due to an increase in third party ancillary software expenses and one-time reclassification of data processing expenses to other categories in the year-ago period. The increase in other noninterest expense was primarily due to card fraud losses and deposit product expenses. These increases as compared to the prior year period were partially offset by decreases in intangible amortization expense, as the core deposit intangible recognized in an older merger was fully amortized in the second quarter of fiscal 2025, and by reduced telecommunication expenses.

The efficiency ratio for the three-month period ended June 30, 2025, was 54.6%, as compared to 58.3% in the same period of the prior fiscal year. The improvement was attributable to net interest income growing faster than operating expenses.

The income tax provision was $3.4 million for the three-month period ended June 30, 2025, and for the same period of the prior fiscal year. The effective tax rate for the fourth quarter of fiscal year 2025 was 17.5%, as compared to 20.2% in the same period of the prior fiscal year. The decrease in the effective tax rate was primarily attributable to a $701,000 income tax benefit from the recognition of tax credits utilizing the proportional amortization method under ASC 2023-02. In the same period of the prior fiscal year, similar benefits were recognized through noninterest income.

Forward-Looking Information:

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

Southern Missouri Bancorp, Inc.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION


Summary Balance Sheet Data as of:	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,
(dollars in thousands, except per share data)	2025			2025			2024			2024			2024

Cash equivalents and time deposits	$	193,105		$	227,136		$	146,078		$	75,591		$	61,395
Available for sale (AFS) securities		460,844			462,930			468,060			420,209			427,903
FHLB/FRB membership stock		18,500			18,269			18,099			18,064			17,802
Loans held for sale		431			—			—			—			—
Loans receivable, gross		4,099,698			4,023,509			4,026,979			3,966,518			3,849,803
Allowance for credit losses		51,629			54,940			54,740			54,437			52,516
Loans receivable, net		4,048,069			3,968,569			3,972,239			3,912,081			3,797,287
Bank-owned life insurance		75,691			75,156			74,643			74,119			73,601
Intangible assets		73,721			74,677			75,399			76,340			77,232
Premises and equipment		95,982			95,987			96,418			96,087			95,952
Other assets		53,264			53,772			56,738			56,709			53,144
Total assets	$	5,019,607		$	4,976,496		$	4,907,674		$	4,729,200		$	4,604,316

Interest-bearing deposits	$	3,773,258		$	3,747,964		$	3,696,428		$	3,536,933		$	3,428,952
Noninterest-bearing deposits		508,110			513,418			514,199			503,209			514,107
Securities sold under agreements to repurchase		15,000			15,000			15,000			15,000			9,398
FHLB advances		104,072			104,072			107,070			107,069			102,050
Other liabilities		51,267			44,057			39,424			38,191			37,905
Subordinated debt		23,208			23,195			23,182			23,169			23,156
Total liabilities		4,474,915			4,447,706			4,395,303			4,223,571			4,115,568

Total stockholders’ equity		544,692			528,790			512,371			505,629			488,748

Total liabilities and stockholders’ equity	$	5,019,607		$	4,976,496		$	4,907,674		$	4,729,200		$	4,604,316

Equity to assets ratio		10.85	%		10.63	%		10.44	%		10.69	%		10.61	%

Common shares outstanding		11,299,467			11,299,962			11,277,167			11,277,167			11,277,737
Less: Restricted common shares not vested		50,163			50,658			46,653			56,553			57,956
Common shares for book value determination		11,249,304			11,249,304			11,230,514			11,220,614			11,219,781

Book value per common share	$	48.42		$	47.01		$	45.62		$	45.06		$	43.56
Less: Intangible assets per common share		6.55			6.64			6.71			6.80			6.88
Tangible book value per common share ⁽¹⁾		41.87			40.37			38.91			38.26			36.68
Closing market price		54.78			52.02			57.37			56.49			45.01

(1) Non-GAAP financial measure.


Nonperforming asset data as of:	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,
(dollars in thousands)	2025			2025			2024			2024			2024

Nonaccrual loans	$	23,040		$	21,970		$	8,309		$	8,206		$	6,680
Accruing loans 90 days or more past due		—			—			—			—			—
Total nonperforming loans		23,040			21,970			8,309			8,206			6,680
Other real estate owned (OREO)		625			1,775			2,423			3,842			3,865
Personal property repossessed		32			56			37			21			23
Total nonperforming assets	$	23,697		$	23,801		$	10,769		$	12,069		$	10,568

Total nonperforming assets to total assets		0.47	%		0.48	%		0.22	%		0.26	%		0.23	%
Total nonperforming loans to gross loans		0.56	%		0.55	%		0.21	%		0.21	%		0.17	%
Allowance for credit losses to nonperforming loans		224.08	%		250.07	%		658.80	%		663.38	%		786.17	%
Allowance for credit losses to gross loans		1.26	%		1.37	%		1.36	%		1.37	%		1.36	%

Performing modifications to borrowers experiencing financial difficulty	$	26,642		$	23,304		$	24,083		$	24,340		$	24,602


	For the three-month period ended
Quarterly Summary Income Statement Data:	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,
(dollars in thousands, except per share data)	2025		2025		2024		2024		2024

Interest income:
Cash equivalents	$	1,698	$	1,585	$	784	$	78	$	541
AFS securities and membership stock		5,586		5,684		5,558		5,547		5,677
Loans receivable		63,354		62,656		63,082		61,753		58,449
Total interest income		70,638		69,925		69,424		67,378		64,667
Interest expense:
Deposits		28,644		28,795		29,538		28,796		27,999
Securities sold under agreements to repurchase		191		189		226		160		125
FHLB advances		1,080		1,076		1,099		1,326		1,015
Subordinated debt		390		386		418		435		433
Total interest expense		30,305		30,446		31,281		30,717		29,572
Net interest income		40,333		39,479		38,143		36,661		35,095
Provision for credit losses		2,500		932		932		2,159		900
Noninterest income:
Deposit account charges and related fees		2,156		2,048		2,237		2,184		1,978
Bank card interchange income		1,839		1,341		1,301		1,499		1,770
Loan late charges		—		—		—		—		170
Loan servicing fees		167		224		232		286		494
Other loan fees		917		843		944		1,063		617
Net realized gains on sale of loans		143		114		133		361		97
Net realized gains (losses) on sale of AFS securities		—		48		—		—		—
Earnings on bank owned life insurance		533		512		522		517		498
Insurance brokerage commissions		368		340		300		287		331
Wealth management fees		825		902		843		730		838
Other noninterest income		332		294		353		247		974
Total noninterest income		7,280		6,666		6,865		7,174		7,767
Noninterest expense:
Compensation and benefits		13,852		13,771		13,737		14,397		13,894
Occupancy and equipment, net		3,745		3,869		3,585		3,689		3,790
Data processing expense		2,573		2,359		2,224		2,171		1,929
Telecommunications expense		312		330		354		428		468
Deposit insurance premiums		601		674		588		472		638
Legal and professional fees		1,165		603		619		1,208		516
Advertising		551		530		442		546		640
Postage and office supplies		336		350		283		306		308
Intangible amortization		857		889		897		897		1,018
Foreclosed property expenses, net		(18)		37		73		12		52
Other noninterest expense		2,002		1,979		2,074		1,715		1,749
Total noninterest expense		25,976		25,391		24,876		25,841		25,002
Net income before income taxes		19,137		19,822		19,200		15,835		16,960
Income taxes		3,351		4,139		4,547		3,377		3,430
Net income		15,786		15,683		14,653		12,458		13,530
Less: Distributed and undistributed earnings allocated
to participating securities		71		71		61		62		69
Net income available to common shareholders	$	15,715	$	15,612	$	14,592	$	12,396	$	13,461

Basic earnings per common share	$	1.40	$	1.39	$	1.30	$	1.10	$	1.19
Diluted earnings per common share		1.39		1.39		1.30		1.10		1.19
Dividends per common share		0.23		0.23		0.23		0.23		0.21
Average common shares outstanding:
Basic		11,250,000		11,238,000		11,231,000		11,221,000		11,276,000
Diluted		11,270,000		11,262,000		11,260,000		11,240,000		11,283,000


	For the three-month period ended
Quarterly Average Balance Sheet Data:	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,
(dollars in thousands)	2025			2025			2024			2024			2024

Interest-bearing cash equivalents	$	151,380		$	143,206		$	64,976		$	5,547		$	39,432
AFS securities and membership stock		498,491			508,642			479,633			460,187			476,198
Loans receivable, gross		4,018,769			4,003,552			3,989,643			3,889,740			3,809,209
Total interest-earning assets		4,668,640			4,655,400			4,534,252			4,355,474			4,324,839
Other assets		299,217			290,739			291,217			283,056			285,956
Total assets	$	4,967,857		$	4,946,139		$	4,825,469		$	4,638,530		$	4,610,795

Interest-bearing deposits	$	3,727,836		$	3,737,849		$	3,615,767		$	3,416,752		$	3,417,360
Securities sold under agreements to repurchase		15,000			15,000			15,000			12,321			9,398
FHLB advances		104,053			106,187			107,054			123,723			102,757
Subordinated debt		23,201			23,189			23,175			23,162			23,149
Total interest-bearing liabilities		3,870,090			3,882,225			3,760,996			3,575,958			3,552,664
Noninterest-bearing deposits		524,860			513,157			524,878			531,946			539,637
Other noninterest-bearing liabilities		37,014			31,282			31,442			33,737			35,198
Total liabilities		4,431,964			4,426,664			4,317,316			4,141,641			4,127,499

Total stockholders’ equity		535,893			519,475			508,153			496,889			483,296

Total liabilities and stockholders’ equity	$	4,967,857		$	4,946,139		$	4,825,469		$	4,638,530		$	4,610,795

Return on average assets		1.27	%		1.27	%		1.21	%		1.07	%		1.17	%
Return on average common stockholders’ equity		11.8	%		12.1	%		11.5	%		10.0	%		11.2	%

Net interest margin		3.46	%		3.39	%		3.36	%		3.37	%		3.25	%
Net interest spread		2.92	%		2.87	%		2.79	%		2.75	%		2.65	%

Efficiency ratio		54.6	%		55.1	%		55.3	%		59.0	%		58.3	%

MIL-OSI: SOUTHERN MISSOURI BANCORP REPORTS PRELIMINARY RESULTS FOR FOURTH QUARTER OF FISCAL 2025; DECLARES QUARTERLY DIVIDEND OF $0.25 PER COMMON SHARE; CONFERENCE CALL SCHEDULED FOR THURSDAY, JULY 24, AT 9:30 AM CENTRAL TIME

Source: GlobeNewswire (MIL-OSI)

Poplar Bluff, Missouri, July 23, 2025 (GLOBE NEWSWIRE) — Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the fourth quarter of fiscal 2025 of $15.8 million, an increase of $2.3 million or 16.7%, as compared to the same period of the prior fiscal year. The increase was primarily attributable to higher net interest income and lower provision for income taxes. This was partially offset by higher provision for credit loss (PCL), noninterest expense, and lower noninterest income. Preliminary net income was $1.39 per fully diluted common share for the fourth quarter of fiscal 2025, an increase of $0.20 as compared to the $1.19 per fully diluted common share reported for the same period of the prior fiscal year. For the full fiscal year 2025, preliminary net income of $58.6 million was an increase of $8.4 million as compared to fiscal 2024, while diluted earnings per share for fiscal 2025 were $5.18, an increase of $0.76 as compared to the $4.42 per fully diluted common share for fiscal 2024.

Highlights for the fourth quarter of fiscal 2025:

Earnings per common share (diluted) were $1.39, up $0.20, or 16.8%, as compared to the same quarter a year ago, and remained unchanged from the third quarter of fiscal 2025, the linked quarter.
Annualized return on average assets (ROA) was 1.27%, while annualized return on average common equity (ROE) was 11.8%, as compared to 1.17% and 11.2%, respectively, in the same quarter a year ago, and 1.27% and 12.1%, respectively, in the third quarter of fiscal 2025, the linked quarter.
Net interest margin for the quarter was 3.46%, up from the 3.25% reported for the year ago period, and up from 3.39% reported for the third quarter of fiscal 2025, the linked quarter. Net interest income increased $5.2 million, or 14.9% as compared to the same quarter a year ago, and increased $854,000, or 2.2% as compared to the third quarter of fiscal 2025, the linked quarter.
Noninterest income was down 6.3% for the quarter, as compared to the year ago period, but up 9.2% as compared to the third quarter of fiscal 2025, the linked quarter. The decrease compared to the year ago period was primarily due to tax credit benefits recorded in the prior fiscal year as noninterest income, but recognized in the current period as a direct reduction from the provision for income taxes under the proportional amortization method of ASU 2023-02. In addition, the Company realized a modest negative adjustment to the value of mortgage servicing rights. The increase in non-interest income compared to the linked quarter was largely due to additional card network fees based on volume incentives totaling $537,000.
Gross loan balances increased by $76.2 million during the fourth quarter, and increased by $249.9 million, or 6.5% during all of fiscal 2025.
PCL was $2.5 million during the fourth quarter of fiscal 2025, a $1.6 million increase from both the year ago period and the third quarter of fiscal 2025, the linked quarter. The increase was primarily driven by higher net charge-offs, largely stemming from a previously identified non-performing special-purpose commercial real estate credit relationship disclosed in the prior quarter and to support loan growth. See “Balance Sheet Summary” below for more detailed information regarding this credit relationship.
Deposit balances increased by $19.9 million during the fourth quarter, and increased by $338.3 million, or 8.6% during all of fiscal 2025.
Cash equivalents and time deposits balances decreased by $34.0 million during the fourth quarter, and increased $131.7 million during all of fiscal 2025, which was driven by deposit growth and earnings retention after cash dividends paid outpacing gross loan and other asset growth.
Tangible book value per share was $41.87, having increased by $5.19, or 14.1%, as compared to June 30, 2024.

Dividend Declared:

The Board of Directors, on July 22, 2025, declared a quarterly cash dividend on common stock of $0.25 per share, payable August 29, 2025, to stockholders of record at the close of business on August 15, 2025, marking the 125th consecutive quarterly dividend since the inception of the Company. The dividend represents an increase of $0.02 per share, or 8.7%, as compared to the previous quarterly dividend payment. The Board of Directors and management believe the payment of a quarterly cash dividend enhances stockholder value and demonstrates our commitment to and confidence in our future prospects.

Conference Call:

The Company will host a conference call to review the information provided in this press release on Thursday, July 24, 2025, at 9:30 a.m., central time. The call will be available live to interested parties by calling 1-833-470-1428 in the United States and from all other locations. Participants should use participant access code 617584. Telephone playback will be available beginning one hour following the conclusion of the call through July 29, 2025. The playback may be accessed by dialing 1-866-813-9403, and using the conference passcode 612450.

Balance Sheet Summary:

The Company experienced balance sheet growth in fiscal 2025, with total assets of $5.0 billion at June 30, 2025, reflecting an increase of $415.3 million, or 9.0%, as compared to June 30, 2024. Growth primarily reflected an increase in net loans receivable, cash equivalents, and available-for-sale (AFS) securities.

Cash equivalents and time deposits were $193.1 million at June 30, 2025, an increase of $131.7 million, or 214.5%, as compared to June 30, 2024. Compared to March 31, 2025, the linked quarter, cash equivalents decreased $34.0 million, or 15.0%, primarily utilized to fund loan growth, which was partially offset by deposit growth and earnings retention after cash dividends paid. AFS securities were $460.8 million at June 30, 2025, up $32.9 million, or 7.7%, as compared to June 30, 2024.

Loans, net of the allowance for credit losses (ACL), were $4.0 billion at June 30, 2025, an increase of $250.8 million, or 6.6%, as compared to June 30, 2024. Gross loans increased by $249.9 million, while the ACL attributable to outstanding loan balances decreased $887,000, or 1.7%, as compared to June 30, 2024. The increase in loan balances was attributable to growth in residential real estate loans, commercial and industrial loans, drawn construction loan balances, multi-family real estate loans, and agricultural production draws. This was partially offset by payoffs and paydowns in non-owner occupied commercial real estate and consumer loans. The table below illustrates changes in loan balances by type over recent periods:


Summary Loan Data as of:	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,
(dollars in thousands)	2025		2025		2024		2024		2024

1-4 residential real estate	$	991,553	$	978,908	$	967,196	$	942,916	$	925,397
Non-owner occupied commercial real estate		888,317		897,125		882,484		903,678		899,770
Owner occupied commercial real estate		442,984		440,282		435,392		438,030		427,476
Multi-family real estate		422,758		405,445		376,081		371,177		384,564
Construction and land development		332,405		323,499		393,388		351,481		290,541
Agriculture real estate		244,983		247,027		239,912		239,787		232,520
Total loans secured by real estate		3,323,000		3,292,286		3,294,453		3,247,069		3,160,268

Commercial and industrial		510,259		488,116		484,799		457,018		450,147
Agriculture production		206,128		186,058		188,284		200,215		175,968
Consumer		55,387		54,022		56,017		58,735		59,671
All other loans		5,102		3,216		3,628		3,699		3,981
Total loans		4,099,876		4,023,698		4,027,181		3,966,736		3,850,035

Deferred loan fees, net		(178)		(189)		(202)		(218)		(232)
Gross loans		4,099,698		4,023,509		4,026,979		3,966,518		3,849,803
Allowance for credit losses		(51,629)		(54,940)		(54,740)		(54,437)		(52,516)
Net loans	$	4,048,069	$	3,968,569	$	3,972,239	$	3,912,081	$	3,797,287

Loans anticipated to fund in the next 90 days totaled $224.1 million at June 30, 2025, as compared to $163.3 million at March 31, 2025, and $157.1 million at June 30, 2024.

The Bank’s concentration in non-owner occupied commercial real estate loans is estimated at 301.9% of Tier 1 capital and ACL at June 30, 2025, as compared to 317.5% as of June 30, 2024, with these loans representing 40.1% of total loans at June 30, 2025. Multi-family residential real estate, hospitality (hotels/restaurants), care facilities, strip centers, retail stand-alone, and storage units are the most common collateral types within the non-owner occupied commercial real estate loan portfolio. The multi-family residential real estate loan portfolio commonly includes loans collateralized by properties currently in the low-income housing tax credit (LIHTC) program or that have exited the program. The hospitality and retail stand-alone segments include primarily franchised businesses; care facilities consisting mainly of skilled nursing and assisted living centers; and strip centers, which can be defined as non-mall shopping centers with a variety of tenants. Non-owner occupied office property types included 33 loans totaling $24.3 million, or 0.59% of total loans at June 30, 2025, none of which were adversely classified as of June 30, 2025, and are generally comprised of smaller spaces with diverse tenants. The Company continues to monitor its commercial real estate concentration and the individual segments closely.

Nonperforming loans (NPLs) were $23.0 million, or 0.56% of gross loans, at June 30, 2025, as compared to $6.7 million, or 0.17% of gross loans, at June 30, 2024. Nonperforming assets (NPAs) were $23.7 million, or 0.47% of total assets, at June 30, 2025, as compared to $10.6 million, or 0.23% of total assets, at June 30, 2024. The rise in NPAs reflects an increase in NPLs, which was partially offset by a decrease in other real estate owned. Compared to March 31, 2025, the linked quarter, NPAs declined $104,000. The year-over-year increase in NPLs was primarily driven by several commercial relationships added during the third and fourth quarters of fiscal 2025, along with the addition of other smaller loans throughout the year, partially offset by net charge-offs. In the fourth quarter, a $5.7 million construction loan related to the development of a senior living facility was placed on nonaccrual status. As previously disclosed in the third quarter, three commercial loans with common guarantors, which are primarily secured by two non-owner-occupied, special-purpose commercial properties located in different states, were also added to NPLs. These properties, which were previously leased to a single tenant that has since become insolvent, are now vacant. Some guarantors are shared across these three loans. The total balance of these three loans at fiscal year end 2025 was $6.2 million, after recognition of $3.8 million charge-offs in the current quarter that were previously reserved for in the linked quarter.

The ACL at June 30, 2025, totaled $51.6 million, representing 1.26% of gross loans and 224% of nonperforming loans, as compared to an ACL of $52.5 million, representing 1.36% of gross loans and 786% of nonperforming loans, at June 30, 2024. The Company has estimated its expected credit losses as of June 30, 2025, under ASC 326-20, and management believes the ACL as of that date was adequate based on that estimate. There remains, however, significant uncertainty as borrowers adjust to relatively high market interest rates, although the Federal Reserve has reduced short-term rates somewhat during this fiscal year. The decrease in the ACL was primarily attributable to net charge-offs, which reduced the required reserves for individually evaluated loans, as well as a decline in certain qualitative adjustments relevant to assessing expected credit losses. This decrease was partially offset by higher required reserves for pooled loans, reflecting management’s updated view of a deteriorating economic outlook and an increase in modeled loss drivers compared to the prior assessment as of June 30, 2024. Additional provisions were also recorded to support loan growth and overdraft exposures during fiscal year 2025. As a percentage of average loans outstanding, the Company recorded net charge offs of 0.53% (annualized) during the current quarter, as compared to 0.06% for the same quarter of the prior fiscal year. In the three-month period ended June 30, 2025, net charge offs were $5.3 million, with the increase from prior periods primarily attributable to the $3.8 million special-purpose CRE charge off noted above, and a $742,000 commercial and industrial charge off related to a commercial contractor. For fiscal year 2025, net charge offs as a percentage of average loans were 0.17%, as compared to 0.05% for fiscal year 2024.

Total liabilities were $4.5 billion at June 30, 2025, an increase of $359.3 million, or 8.7%, as compared to June 30, 2024. Growth primarily reflected increases in total deposits, other liabilities, accrued interest and income taxes payable, and securities sold under agreement to repurchase.

Deposits were $4.3 billion at June 30, 2025, an increase of $338.3 million, or 8.6%, as compared to June 30, 2024. The deposit portfolio saw increases in certificates of deposit and savings accounts, as customers remained willing to move balances into special rate time deposits and high yield savings accounts in the higher rate environment. Public unit balances totaled $550.8 million at June 30, 2025, a decrease of $43.8 million compared to June 30, 2024, mostly due to the Company losing the bid to retain a larger local public unit depositor early in the fiscal year. Brokered deposits totaled $233.6 million at June 30, 2025, an increase of $61.9 million as compared to June 30, 2024. The average loan-to-deposit ratio for the fourth quarter of fiscal 2025 was 94.5%, as compared to 96.3% for the same period of the prior fiscal year. The period end loan-to-deposit ratios were 95.8% and 97.6% as of June 30, 2024, and 2025, respectively. The table below illustrates changes in deposit balances by type over recent periods:


Summary Deposit Data as of:	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,
(dollars in thousands)	2025		2025		2024		2024		2024

Non-interest bearing deposits	$	508,110	$	513,418	$	514,199	$	503,209	$	514,107
NOW accounts		1,132,298		1,167,296		1,211,402		1,128,917		1,239,663
MMDAs – non-brokered		329,837		345,810		347,271		320,252		334,774
Brokered MMDAs		1,414		2,013		3,018		12,058		2,025
Savings accounts		661,115		626,175		573,291		556,030		517,084
Total nonmaturity deposits		2,632,774		2,654,712		2,649,181		2,520,466		2,607,653

Certificates of deposit – non-brokered		1,414,945		1,373,109		1,310,421		1,258,583		1,163,650
Brokered certificates of deposit		233,649		233,561		251,025		261,093		171,756
Total certificates of deposit		1,648,594		1,606,670		1,561,446		1,519,676		1,335,406

Total deposits	$	4,281,368	$	4,261,382	$	4,210,627	$	4,040,142	$	3,943,059

Public unit nonmaturity accounts	$	435,632	$	472,010	$	482,406	$	447,638	$	541,445
Public unit certificates of deposit		115,204		103,741		83,506		62,882		53,144
Total public unit deposits	$	550,836	$	575,751	$	565,912	$	510,520	$	594,589

FHLB advances were $104.1 million at June 30, 2025, an increase of $2.0 million, or 2.0%, as compared to June 30, 2024.

The Company’s stockholders’ equity was $544.7 million at June 30, 2025, an increase of $55.9 million, or 11.4%, as compared to June 30, 2024. The increase was attributable primarily to earnings retained after cash dividends paid, in combination with a $6.1 million reduction in accumulated other comprehensive losses (AOCL) as the market value of the Company’s investments appreciated due to the decrease in market interest rates. The AOCL totaled $11.4 million at June 30, 2025, as compared to $17.5 million at June 30, 2024. The Company does not hold any securities classified as held-to-maturity.

Quarterly Income Statement Summary:

The Company’s net interest income for the three-month period ended June 30, 2025, was $40.3 million, an increase of $5.2 million, or 14.9%, as compared to the same period of the prior fiscal year. The increase was attributable to a 7.9% increase in the average balance of interest-earning assets in the current three-month period compared to the same period a year ago, and an increase of 21 basis points in the net interest margin, from 3.25% to 3.46%. The primary driver of the net interest margin expansion, compared to the year ago period, was the cost of interest-bearing liabilities decreasing 20 basis points, while the yield on interest-earning assets increased seven basis points. The overall increase in spread of 27 basis points was partially offset by a lower level of average interest-earning assets to average interest-bearing liabilities totaling 120.6% at June 30, 2025, down 1.1 percentage points compared to the year ago period, due to stronger deposit growth.

Loan discount accretion and deposit premium amortization related to the November 2018 acquisition of First Commercial Bank, the May 2020 acquisition of Central Federal Savings & Loan Association, the February 2022 merger of FortuneBank, and the January 2023 acquisition of Citizens Bank & Trust resulted in $612,000 in net interest income for the three-month period ended June 30, 2025, as compared to $1.1 million in net interest income for the same period a year ago. Combined, this component of net interest income contributed five basis points to net interest margin in the three-month period ended June 30, 2025, as compared to a ten basis point contribution for the same period of the prior fiscal year, and as compared to a 13-basis point contribution in the linked quarter, ended March 31, 2025, when net interest margin was 3.39%.

The Company recorded a PCL of $2.5 million in the three-month period ended June 30, 2025, as compared to a PCL of $900,000 in the same period of the prior fiscal year. The current period PCL was the result of a $2.0 million provision attributable to the ACL for loan balances outstanding and a $475,000 provision attributable to the allowance for off-balance sheet credit exposures. The increase was primarily attributable to providing for net charge-offs and to support loan growth, in addition to an increase in unfunded balances and an increase in the expected funding rate on available credit.

The Company’s noninterest income for the three-month period ended June 30, 2025, was $7.3 million, a decrease of $487,000, or 6.3%, as compared to the same period of the prior fiscal year. The decrease was attributable to lower other noninterest income and loan servicing fees. The decrease in other noninterest income was associated with the change in accounting for realization of tax credits, as the Company has adopted the proportional amortization method under ASU 2023-02, which results in a direct reduction to the provision for income taxes in fiscal 2025. The tax credit benefit recognized in other noninterest income in the three-month period ended June 2024 was $675,000. Loan servicing fees were negatively impacted by the recognition of a change in the fair value of mortgage servicing rights, which in the fourth quarter of fiscal 2025 resulted in a negative adjustment of $108,000, as compared to a benefit of $131,000 in the same period a year ago, due to changes in market rates and prepayment assumptions. These decreases as compared to the prior year period were partially offset by increases in other loan fees attributable to increased loan originations and higher deposit account charges and related fees primarily attributable to an increase in non-sufficient fund activity and an increase in maintenance and activity fees collected.

Noninterest expense for the three-month period ended June 30, 2025, was $26.0 million, an increase of $974,000, or 3.9%, as compared to the same period of the prior fiscal year. The increase as compared to the year-ago period was primarily attributable to increases in legal and professional fees, data processing expense, and other noninterest expense. The Company experienced elevated legal and professional fees associated with consulting costs to negotiate a new contract with a large vendor totaling $425,000. Data processing expense increased due to an increase in third party ancillary software expenses and one-time reclassification of data processing expenses to other categories in the year-ago period. The increase in other noninterest expense was primarily due to card fraud losses and deposit product expenses. These increases as compared to the prior year period were partially offset by decreases in intangible amortization expense, as the core deposit intangible recognized in an older merger was fully amortized in the second quarter of fiscal 2025, and by reduced telecommunication expenses.

The efficiency ratio for the three-month period ended June 30, 2025, was 54.6%, as compared to 58.3% in the same period of the prior fiscal year. The improvement was attributable to net interest income growing faster than operating expenses.

The income tax provision was $3.4 million for the three-month period ended June 30, 2025, and for the same period of the prior fiscal year. The effective tax rate for the fourth quarter of fiscal year 2025 was 17.5%, as compared to 20.2% in the same period of the prior fiscal year. The decrease in the effective tax rate was primarily attributable to a $701,000 income tax benefit from the recognition of tax credits utilizing the proportional amortization method under ASC 2023-02. In the same period of the prior fiscal year, similar benefits were recognized through noninterest income.

Forward-Looking Information:

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

Southern Missouri Bancorp, Inc.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION


Summary Balance Sheet Data as of:	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,
(dollars in thousands, except per share data)	2025			2025			2024			2024			2024

Cash equivalents and time deposits	$	193,105		$	227,136		$	146,078		$	75,591		$	61,395
Available for sale (AFS) securities		460,844			462,930			468,060			420,209			427,903
FHLB/FRB membership stock		18,500			18,269			18,099			18,064			17,802
Loans held for sale		431			—			—			—			—
Loans receivable, gross		4,099,698			4,023,509			4,026,979			3,966,518			3,849,803
Allowance for credit losses		51,629			54,940			54,740			54,437			52,516
Loans receivable, net		4,048,069			3,968,569			3,972,239			3,912,081			3,797,287
Bank-owned life insurance		75,691			75,156			74,643			74,119			73,601
Intangible assets		73,721			74,677			75,399			76,340			77,232
Premises and equipment		95,982			95,987			96,418			96,087			95,952
Other assets		53,264			53,772			56,738			56,709			53,144
Total assets	$	5,019,607		$	4,976,496		$	4,907,674		$	4,729,200		$	4,604,316

Interest-bearing deposits	$	3,773,258		$	3,747,964		$	3,696,428		$	3,536,933		$	3,428,952
Noninterest-bearing deposits		508,110			513,418			514,199			503,209			514,107
Securities sold under agreements to repurchase		15,000			15,000			15,000			15,000			9,398
FHLB advances		104,072			104,072			107,070			107,069			102,050
Other liabilities		51,267			44,057			39,424			38,191			37,905
Subordinated debt		23,208			23,195			23,182			23,169			23,156
Total liabilities		4,474,915			4,447,706			4,395,303			4,223,571			4,115,568

Total stockholders’ equity		544,692			528,790			512,371			505,629			488,748

Total liabilities and stockholders’ equity	$	5,019,607		$	4,976,496		$	4,907,674		$	4,729,200		$	4,604,316

Equity to assets ratio		10.85	%		10.63	%		10.44	%		10.69	%		10.61	%

Common shares outstanding		11,299,467			11,299,962			11,277,167			11,277,167			11,277,737
Less: Restricted common shares not vested		50,163			50,658			46,653			56,553			57,956
Common shares for book value determination		11,249,304			11,249,304			11,230,514			11,220,614			11,219,781

Book value per common share	$	48.42		$	47.01		$	45.62		$	45.06		$	43.56
Less: Intangible assets per common share		6.55			6.64			6.71			6.80			6.88
Tangible book value per common share ⁽¹⁾		41.87			40.37			38.91			38.26			36.68
Closing market price		54.78			52.02			57.37			56.49			45.01

(1) Non-GAAP financial measure.


Nonperforming asset data as of:	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,
(dollars in thousands)	2025			2025			2024			2024			2024

Nonaccrual loans	$	23,040		$	21,970		$	8,309		$	8,206		$	6,680
Accruing loans 90 days or more past due		—			—			—			—			—
Total nonperforming loans		23,040			21,970			8,309			8,206			6,680
Other real estate owned (OREO)		625			1,775			2,423			3,842			3,865
Personal property repossessed		32			56			37			21			23
Total nonperforming assets	$	23,697		$	23,801		$	10,769		$	12,069		$	10,568

Total nonperforming assets to total assets		0.47	%		0.48	%		0.22	%		0.26	%		0.23	%
Total nonperforming loans to gross loans		0.56	%		0.55	%		0.21	%		0.21	%		0.17	%
Allowance for credit losses to nonperforming loans		224.08	%		250.07	%		658.80	%		663.38	%		786.17	%
Allowance for credit losses to gross loans		1.26	%		1.37	%		1.36	%		1.37	%		1.36	%

Performing modifications to borrowers experiencing financial difficulty	$	26,642		$	23,304		$	24,083		$	24,340		$	24,602


	For the three-month period ended
Quarterly Summary Income Statement Data:	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,
(dollars in thousands, except per share data)	2025		2025		2024		2024		2024

Interest income:
Cash equivalents	$	1,698	$	1,585	$	784	$	78	$	541
AFS securities and membership stock		5,586		5,684		5,558		5,547		5,677
Loans receivable		63,354		62,656		63,082		61,753		58,449
Total interest income		70,638		69,925		69,424		67,378		64,667
Interest expense:
Deposits		28,644		28,795		29,538		28,796		27,999
Securities sold under agreements to repurchase		191		189		226		160		125
FHLB advances		1,080		1,076		1,099		1,326		1,015
Subordinated debt		390		386		418		435		433
Total interest expense		30,305		30,446		31,281		30,717		29,572
Net interest income		40,333		39,479		38,143		36,661		35,095
Provision for credit losses		2,500		932		932		2,159		900
Noninterest income:
Deposit account charges and related fees		2,156		2,048		2,237		2,184		1,978
Bank card interchange income		1,839		1,341		1,301		1,499		1,770
Loan late charges		—		—		—		—		170
Loan servicing fees		167		224		232		286		494
Other loan fees		917		843		944		1,063		617
Net realized gains on sale of loans		143		114		133		361		97
Net realized gains (losses) on sale of AFS securities		—		48		—		—		—
Earnings on bank owned life insurance		533		512		522		517		498
Insurance brokerage commissions		368		340		300		287		331
Wealth management fees		825		902		843		730		838
Other noninterest income		332		294		353		247		974
Total noninterest income		7,280		6,666		6,865		7,174		7,767
Noninterest expense:
Compensation and benefits		13,852		13,771		13,737		14,397		13,894
Occupancy and equipment, net		3,745		3,869		3,585		3,689		3,790
Data processing expense		2,573		2,359		2,224		2,171		1,929
Telecommunications expense		312		330		354		428		468
Deposit insurance premiums		601		674		588		472		638
Legal and professional fees		1,165		603		619		1,208		516
Advertising		551		530		442		546		640
Postage and office supplies		336		350		283		306		308
Intangible amortization		857		889		897		897		1,018
Foreclosed property expenses, net		(18)		37		73		12		52
Other noninterest expense		2,002		1,979		2,074		1,715		1,749
Total noninterest expense		25,976		25,391		24,876		25,841		25,002
Net income before income taxes		19,137		19,822		19,200		15,835		16,960
Income taxes		3,351		4,139		4,547		3,377		3,430
Net income		15,786		15,683		14,653		12,458		13,530
Less: Distributed and undistributed earnings allocated
to participating securities		71		71		61		62		69
Net income available to common shareholders	$	15,715	$	15,612	$	14,592	$	12,396	$	13,461

Basic earnings per common share	$	1.40	$	1.39	$	1.30	$	1.10	$	1.19
Diluted earnings per common share		1.39		1.39		1.30		1.10		1.19
Dividends per common share		0.23		0.23		0.23		0.23		0.21
Average common shares outstanding:
Basic		11,250,000		11,238,000		11,231,000		11,221,000		11,276,000
Diluted		11,270,000		11,262,000		11,260,000		11,240,000		11,283,000


	For the three-month period ended
Quarterly Average Balance Sheet Data:	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,
(dollars in thousands)	2025			2025			2024			2024			2024

Interest-bearing cash equivalents	$	151,380		$	143,206		$	64,976		$	5,547		$	39,432
AFS securities and membership stock		498,491			508,642			479,633			460,187			476,198
Loans receivable, gross		4,018,769			4,003,552			3,989,643			3,889,740			3,809,209
Total interest-earning assets		4,668,640			4,655,400			4,534,252			4,355,474			4,324,839
Other assets		299,217			290,739			291,217			283,056			285,956
Total assets	$	4,967,857		$	4,946,139		$	4,825,469		$	4,638,530		$	4,610,795

Interest-bearing deposits	$	3,727,836		$	3,737,849		$	3,615,767		$	3,416,752		$	3,417,360
Securities sold under agreements to repurchase		15,000			15,000			15,000			12,321			9,398
FHLB advances		104,053			106,187			107,054			123,723			102,757
Subordinated debt		23,201			23,189			23,175			23,162			23,149
Total interest-bearing liabilities		3,870,090			3,882,225			3,760,996			3,575,958			3,552,664
Noninterest-bearing deposits		524,860			513,157			524,878			531,946			539,637
Other noninterest-bearing liabilities		37,014			31,282			31,442			33,737			35,198
Total liabilities		4,431,964			4,426,664			4,317,316			4,141,641			4,127,499

Total stockholders’ equity		535,893			519,475			508,153			496,889			483,296

Total liabilities and stockholders’ equity	$	4,967,857		$	4,946,139		$	4,825,469		$	4,638,530		$	4,610,795

Return on average assets		1.27	%		1.27	%		1.21	%		1.07	%		1.17	%
Return on average common stockholders’ equity		11.8	%		12.1	%		11.5	%		10.0	%		11.2	%

Net interest margin		3.46	%		3.39	%		3.36	%		3.37	%		3.25	%
Net interest spread		2.92	%		2.87	%		2.79	%		2.75	%		2.65	%

Efficiency ratio		54.6	%		55.1	%		55.3	%		59.0	%		58.3	%

MIL-OSI: reAlpha Announces Repayment in Full of the Outstanding Balance of Streeterville Secured Promissory Note

Source: GlobeNewswire (MIL-OSI)

DUBLIN, Ohio, July 23, 2025 (GLOBE NEWSWIRE) — reAlpha Tech Corp. (Nasdaq: AIRE) (the “Company” or “reAlpha”), an AI-powered real estate technology company, today announced that it has repaid in full the outstanding balance on its secured promissory note with Streeterville Capital, LLC (“Streeterville”).

The secured promissory note, originally issued on August 14, 2024 with a principal balance of $5.45 million and an 8% annual interest rate, was scheduled to mature on February 14, 2026. Over the past year, reAlpha steadily reduced the outstanding balance through partial repayments in cash and equity, then repaid the full outstanding balance on July 23, 2025 using available cash, including proceeds from recent equity offerings.

“The full repayment of our long-term debt marks a pivotal milestone for reAlpha,” said Mike Logozzo, Chief Executive Officer of reAlpha. “Now, we are well-positioned to accelerate our product development and market expansion, as well as pursue strategic acquisitions and partnerships that broaden our AI-driven platform for homebuyers.”

Piyush Phadke, Chief Financial Officer of reAlpha, added, “With the note now fully repaid, we’ve strengthened our balance sheet and simplified our capital structure. We now have greater financial flexibility to support near-term growth initiatives and maintain discipline as we scale operations.”

Following the repayment, reAlpha has no outstanding secured promissory notes or convertible debt instruments, leaving trade payables and subsidiary debt as its only obligations. Streeterville has confirmed in writing that all obligations with respect to the secured promissory note have been fully satisfied and the Company is released from all further obligations.

Further information is set forth in the Current Report on Form 8-K filed by the Company with the U.S. Securities and Exchange Commission (the “SEC”) on July 23, 2025.

About reAlpha Tech Corp.

reAlpha Tech Corp. (Nasdaq: AIRE) is an AI-powered real estate technology company transforming the multi-trillion-dollar U.S. real estate services market. reAlpha is developing an end-to-end platform that streamlines real estate transactions through integrated brokerage, mortgage, and title services. With a strategic, acquisition-driven growth model and proprietary AI infrastructure, reAlpha is building a vertically integrated ecosystem designed to deliver a simpler, smarter, and more affordable path to homeownership. For more information, visit www.realpha.com.

Forward-Looking Statements

The information in this press release includes “forward-looking statements.” Any statements other than statements of historical fact contained herein, including statements by our Chief Executive Officer, Mike Logozzo and Chief Financial Officer, Piyush Phadke, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “could”, “might”, “plan”, “possible”, “project”, “strive”, “budget”, “forecast”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: reAlpha’s ability to regain and sustain compliance with the Nasdaq Capital Market’s continued listing standards and remain listed on the Nasdaq Capital Market; reAlpha’s ability to pay contractual obligations; reAlpha’s liquidity, operating performance, cash flow and ability to secure adequate financing; reAlpha’s limited operating history and that reAlpha has not yet fully developed its AI-based technologies; whether reAlpha’s technology and products will be accepted and adopted by its customers and intended users; reAlpha’s ability to commercialize its developing AI-based technologies; reAlpha’s ability to successfully enter new geographic markets; reAlpha’s ability to integrate the business of its acquired companies into its existing business and the anticipated demand for such acquired companies’ services; reAlpha’s ability to scale its operational capabilities to expand into additional geographic markets and nationally; the potential loss of key employees of reAlpha and of its subsidiaries; the outcome of certain outstanding legal proceedings against reAlpha; reAlpha’s ability to obtain, and maintain, the required licenses to operate in the U.S. states in which it, or its subsidiaries, operate in, or intend to operate in; reAlpha’s ability to successfully identify and acquire companies that are complementary to its business model; the inability to maintain and strengthen reAlpha’s brand and reputation; any accidents or incidents involving cybersecurity breaches and incidents; the inability to accurately forecast demand for AI-based real estate-focused products; the inability to execute business objectives and growth strategies successfully or sustain reAlpha’s growth; the inability of reAlpha’s customers to pay for reAlpha’s services; the inability of reAlpha to obtain additional financing or access the capital markets to fund its ongoing operations on acceptable terms and conditions; the outcome of any legal proceedings that might be instituted against reAlpha; changes in applicable laws or regulations, and the impact of the regulatory environment and complexities with compliance related to such environment; and other risks and uncertainties indicated in reAlpha’s SEC filings. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Although reAlpha believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. reAlpha’s future results, level of activity, performance or achievements may differ materially from those contemplated, expressed or implied by the forward-looking statements, and there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking statements. For more information about the factors that could cause such differences, please refer to reAlpha’s filings with the SEC. Readers are cautioned not to put undue reliance on forward-looking statements, and reAlpha does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Media Contact:
Cristol Rippe, Chief Marketing Officer
cristol@realpha.com

Investor Relations Contact:
Adele Carey, VP of Investor Relations
investorrelations@realpha.com

MIL-OSI: Home Federal Bancorp, Inc. of Louisiana Increases Quarterly Cash Dividend for 12th Consecutive Year

Source: GlobeNewswire (MIL-OSI)

SHREVEPORT, La., July 23, 2025 (GLOBE NEWSWIRE) — Home Federal Bancorp, Inc. of Louisiana (the “Company”) (NASDAQ: HFBL), the holding company for Home Federal Bank, announced today that its Board of Directors at their meeting on July 23, 2025, declared a quarterly cash dividend of $0.135 per share on the Company’s common stock. The dividend is payable on August 18, 2025, to the shareholders of record at the close of business on August 4, 2025.

James R. Barlow, Chairman of the Board, President and Chief Executive Officer, stated, “This twelfth consecutive annual increase in our dividend rate, and 81^st consecutive quarterly cash dividend, reflects our continued commitment to creating value for our shareholders and confidence in the financial strength and long-term prospects for our Company. Based on our earnings for the trailing four fiscal quarters ended March 31, 2025, the increase reflects a payout ratio of approximately 49.5%.”

Home Federal Bancorp, Inc. of Louisiana is the holding company for Home Federal Bank which conducts business from its ten full-service banking offices and home office in northwest Louisiana. Additional information is available at www.hfb.bank.

Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” We undertake no obligation to update any forward-looking statements.

Contact:

Home Federal Bancorp, Inc. of Louisiana

James R. Barlow, Chairman of the Board, President and

Chief Executive Officer

(318) 222-1145

MIL-OSI: Home Federal Bancorp, Inc. of Louisiana Increases Quarterly Cash Dividend for 12th Consecutive Year

Source: GlobeNewswire (MIL-OSI)

SHREVEPORT, La., July 23, 2025 (GLOBE NEWSWIRE) — Home Federal Bancorp, Inc. of Louisiana (the “Company”) (NASDAQ: HFBL), the holding company for Home Federal Bank, announced today that its Board of Directors at their meeting on July 23, 2025, declared a quarterly cash dividend of $0.135 per share on the Company’s common stock. The dividend is payable on August 18, 2025, to the shareholders of record at the close of business on August 4, 2025.

James R. Barlow, Chairman of the Board, President and Chief Executive Officer, stated, “This twelfth consecutive annual increase in our dividend rate, and 81^st consecutive quarterly cash dividend, reflects our continued commitment to creating value for our shareholders and confidence in the financial strength and long-term prospects for our Company. Based on our earnings for the trailing four fiscal quarters ended March 31, 2025, the increase reflects a payout ratio of approximately 49.5%.”

Home Federal Bancorp, Inc. of Louisiana is the holding company for Home Federal Bank which conducts business from its ten full-service banking offices and home office in northwest Louisiana. Additional information is available at www.hfb.bank.

Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” We undertake no obligation to update any forward-looking statements.

Contact:

Home Federal Bancorp, Inc. of Louisiana

James R. Barlow, Chairman of the Board, President and

Chief Executive Officer

(318) 222-1145

MIL-Evening Report: After 70 years, twisted gothic thriller The Night of the Hunter remains as disturbing and beguiling as ever

Source: The Conversation (Au and NZ) – By Ben McCann, Associate Professor of French Studies, University of Adelaide

United Artists/Getty Images

In 1955, director Charles Laughton crafted one of the darkest, strangest fairytales ever to come out of Hollywood. The Night of the Hunter remains visually exquisite and profoundly unsettling.

Shortly before Ben Harper is hanged for robbing a bank and killing two men, he hides the $10,000 loot in the toy doll of his young daughter Pearl. Only Pearl and her brother John know the secret – until the deranged serial killer-priest Harry Powell hears about the money and sets out to recover it.

Harry marries Willa, Harper’s widow, and then, after killing her, pursues John and Pearl relentlessly across West Virginia.

Set in the Depression-hit 1930s, The Night of the Hunter is, to quote film critic Pauline Kael, “one of the most frightening movies ever made”. Mitchum’s depiction of pure evil is one of cinema’s most vivid creations, with LOVE and HATE tattooed on the fingers of each hand.

But this is no simple chase film. It’s about the fight for the souls of two children between the forces of evil and good.

Gothic nightmares

Laughton was an odd choice to adapt Davis Grubb’s original 1952 novel – the Oscar-winning British actor had never directed before. Yet Laughton’s “outsider” status meant he wasn’t bound by Hollywood convention and could follow his surreal instincts.

The film draws heavily from German Expressionist cinema, especially in the use of stark black-and-white contrast and exaggerated shadows. Cinematographer Stanley Cortez described it as his best work, and rightly so: the film often feels more like a dream (or a nightmare).

Laughton and Cortez craft a series of remarkable images: Pearl and John fleeing down the river, watched over by owls, frogs and rabbits; Powell’s looming shadow cast across a bedroom wall; the slain Willa’s blonde hair floating under the river after her death.

The film is deeply allegorical. It plays with Christian imagery, ideas of sin and salvation and the vulnerability of the innocent.

Laughton’s masterstroke was to pit the predatory adult world against the instinctual wisdom and resilience of children.

Powell (played by Robert Mitchum in his greatest role) is no monster or madman, but a religious fanatic who murders under the guise of righteousness. He embodies the Gothic trope of the corrupt or false preacher. His looming menace turns small-town America into a place of paranoia, dread and moral confusion.

Rachel Cooper (the silent film star Lillian Gish, never better), who protects the children in the second half of the film, stands as the maternal, angelic counterpoint to Powell’s demonic figure. Her role emphasises another key point of the film: the redemptive, almost sacred, power of kindness.

A perfect performance

As Powell, Mitchum drew on his uncanny knack at exuding charm and menace. Many actors would have clashed with Laughton’s expressionistic style, but Mitchum hit the perfect tone: heightened and theatrical, but never camp.

His delivery is hypnotic, musical and terrifying.

At a time when many stars were protective of their public image, Mitchum had no problem playing a child-killing religious maniac.

Known for his rebellious streak and brushes with scandal (including a marijuana arrest in 1948), Mitchum wasn’t bound by Hollywood’s moral expectations. That gave him the freedom to push into darker territory with no vanity.

That moral delusion, delivered with conviction, is what makes Powell so frightening. Mitchum’s Powell anticipates later predators like Norman Bates (Psycho) or Max Cady (the role he would play in the 1962 version of Cape Fear), but he also echoes much older archetypes: the Big Bad Wolf, the false prophet and the devil in a black coat.

A flop turned masterpiece

The film was a critical and commercial failure. Laughton’s bold and unconventional choices were risky. His blend of German Expressionism, Southern Gothic Americana and psychological horror was unlike anything American cinema had seen before.

It did not align with the mainstream tastes of the era – the top grossing Hollywood films of 1955 were family-friendly, comforting offerings like Oklahoma! and Lady and the Tramp.

Audiences and reviewers didn’t know what to make of this abnormal mix of fairy tale logic, nightmarish imagery and biblical allegory.

So heartbroken was Laughton by the savage reception the film received (“a horrible yarn […] a repulsive picture”, one reviewer called it), he never directed again. Yet the reputation of his one-hit wonder has only grown over time.

Successive generations of critics and filmmakers have caught on to its brilliance. Critic Roger Ebert said it was “one of the greatest of all American films”. In 2008, French film magazine Cahiers du cinéma voted it as the second-best film of all time, behind only Citizen Kane (1941).

A long-lasting legacy

Margaret Atwood, David Lynch and the Coen Brothers have all cited the film as a major influence. Spike Lee paid homage to LOVE and HATE in Do The Right Thing (1989). And surely James Cameron admired it, for what is Terminator 2 (1991) if not a rehash of Powell’s insistent chase-down of children?

Its depiction of a charming, violent manipulator speaks to contemporary fears about religious hypocrisy and the abuse of moral authority. And it reminds us the bucolic innocence of rural America can hide evil in plain sight.

It’s often the case that films which are misunderstood on first release are ahead of their time, and never fully appreciated until many years later.

That’s the case with The Night of the Hunter. It remains unsettlingly modern, 70 years on.

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

– ref. After 70 years, twisted gothic thriller The Night of the Hunter remains as disturbing and beguiling as ever – https://theconversation.com/after-70-years-twisted-gothic-thriller-the-night-of-the-hunter-remains-as-disturbing-and-beguiling-as-ever-251049

MIL OSI Analysis – EveningReport.nz –

MIL-Evening Report: As seas rise and fish decline, this Fijian village is finding new ways to adapt

Source: The Conversation (Au and NZ) – By Celia McMichael, Professor in Geography, The University of Melbourne

Celia McMichael, CC BY-NC-ND

In the village of Nagigi, Fiji, the ocean isn’t just a resource – it’s part of the community’s identity. But in recent years, villagers have seen the sea behave differently. Tides are pushing inland. Once abundant, fish are now harder to find. Sandy beaches and coconut trees have been washed away.

Like many coastal communities, including those across the Pacific Islands region, this village is now under real pressure from climate change and declining fish stocks. Methods of fishing are no longer guaranteed, while extreme weather and coastal erosion threaten homes and land. As one villager told us:

we can’t find fish easily, not compared to previous times […] some fish species we used to see before are no longer around.

When stories like this get publicity, they’re often framed as a story of loss. Pacific Islanders can be portrayed as passive victims of climate change.

But Nagigi’s experience isn’t just about vulnerability. As our new research shows, it’s about the actions people are taking to cope with the changes already here. In response to falling fish numbers and to diversify livelihoods, women leaders launched a new aquaculture project, and they have replanted mangroves to slow the advance of the sea.

Adaptation is uneven. Many people don’t want to or can’t leave their homes. But as climate change intensifies, change will be unavoidable. Nagigi’s experience points to the importance of communities working collectively to respond to threats.

Unwelcome change is here

The communities we focus on, Nagigi village (population 630) and Bia-I-Cake settlement (population 60), are located on Savusavu Bay in Vanua Levu, Fiji’s second largest island. Fishing and marine resources are central to their livelihoods and food security.

In 2021 and 2023, we ran group discussions (known as talanoa) and interviews to find out about changes seen and adaptations made.

Nagigi residents have noticed unwelcome changes in recent years. As one woman told us:

sometimes the sea is coming further onto the land, so there’s a lot of sea intrusion into the plantations, flooding even on land where it never used to be

Tides are pushing ashore in Nagigi, threatening infrastructure.
Celia McMichael, CC BY-NC-ND

In 2016, the devastating Tropical Cyclone Winston destroyed homes and forced some Nagigi residents to move inland to customary mataqali land owned by their clan.

As one resident said:

our relocation was smooth because […] we just moved to our own land, our mataqali land.

But some residents didn’t have access to this land, while others weren’t willing to move away from the coast. One man told us:

leave us here. I think if I don’t smell or hear the ocean for one day I would be devastated.

Adaptation is happening

One striking aspect of adaptation in Nagigi has been the leadership of women, particularly in the small Bia-I-Cake settlement.

In recent years, the Bia-I-Cake Women’s Cooperative has launched a small-scale aquaculture project to farm tilapia and carp to tackle falling fish stocks in the ocean, tackle rising food insecurity and create new livelihoods.

Women in the cooperative have built fish ponds, learned how to rear fish to a good size and began selling the fish, including by live streaming the sale. The project was supported by a small grant from the United Nations Development Programme and the Women’s Fund Fiji.

Recently, the cooperative’s women have moved into mangrove replanting to slow coastal erosion and built a greenhouse to farm new crops.

As one woman told us, these efforts show women “have the capacity to build a sustainable, secure and thriving community”.

The community’s responses draw on traditional social structures and values, such as respect for Vanua – the Fijian and Pacific concept of how land, sea, people, customs and spiritual beliefs are interconnected – as well as stewardship of natural resources and collective decision-making through clans and elders, both women and men.

Nagigi residents have moved to temporarily close some customary fishing grounds to give fish populations a chance to recover. The village is also considering declaring a locally-managed marine area (known as a tabu). This is a response to climate impacts as well as damage to reefs, pollution and overfishing.

For generations, village residents have protected local ecosystems which in turn support the village. But what is new is how these practices are being strengthened and formalised to respond to new challenges.

A women’s cooperative have built aquaculture ponds to raise and sell fish.
Celia McMichael, CC BY-NC-ND

Adaptation is uneven

While adaptation is producing some successes, it is unevenly spread. Not everyone has access to customary land for relocation and not every household can afford to rebuild damaged homes.

What Nagigi teaches us, though, is the importance of local adaptation. Villagers have demonstrated how a community can anticipate risks, respond to change and threats, recover from damage and take advantage of new opportunities.

Small communities are not just passive sites of loss. They are collectives of strength, agency and ingenuity. As adaptation efforts scale up across the Pacific, it is important to recognise and support local initiatives such as those in Nagigi.

Sharing effective adaptation methods can give ideas and hope to other communities under real pressure from climate change and other threats.

Many communities are doing their best to adapt often undertaking community-led adaptation, even despite the limited access Pacific nations have to global climate finance.

Nagigi’s example shows unwelcome climatic and environmental changes are already arriving. But it’s also about finding ways to live well amid uncertainty and escalating risk by using place, tradition and community.

The authors acknowledge the support of the people of Nagigi and Bia-I-Cake, and especially the Bia-I-Cake Women’s Cooperative, for sharing their time and insights.

Celia McMichael receives funding from the Australian Research Council (ARC).

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

– ref. As seas rise and fish decline, this Fijian village is finding new ways to adapt – https://theconversation.com/as-seas-rise-and-fish-decline-this-fijian-village-is-finding-new-ways-to-adapt-261573

MIL OSI Analysis – EveningReport.nz –