NewzIntel.com

Category: Intelligence Agencies

  • MIL-OSI Security: Missouri Man Sentenced 21 Years in Prison for Recording Minor Victim in Bathroom

    Source: Office of United States Attorneys

    CAPE GIRARDEAU – U.S. District Audrey G. Fleissig on Tuesday sentenced a man whose trial for recording a girl in the bathroom revealed allegations that he had sexually abused at least three other children to 21 years in prison.

    Rayford Evans, 52, of Doniphan, in Ripley County, was convicted of attempted sexual exploitation of a minor after a one-day bench trial in January. Evidence and testimony showed that Evans used his cell phone to record a 15-year-old girl while she was bathing and using the bathroom by holding it up to a window above the bathroom door. The victim saw the phone and told a friend, the friend’s father and then her own father, who contacted the Doniphan City Police Department. An officer found three videos of the girl that Evans tried to delete.

    During Evans trial, another victim testified about her sexual abuse at the hands of Evans, and there was testimony that Evans had recorded videos of a different girl. Three others testified at Evans’ sentencing hearing Tuesday about his sexual abuse of them.

    “Evans has sexually exploited children for decades,” Assistant U.S. Attorney Julie Hunter wrote in a sentencing memo, and “used bribery in the form of electronics, toys, and candy to violate the trust of innocent children to sexually abuse them.”

    One victim described Evans in a letter as a predator who has “hunted children, for his depraved sexual appetite, for at least 26 years.”

    Evans has disputed the allegations involving other victims.

    The FBI and the Doniphan City Police Department investigated the case. Assistant U.S. Attorney Julie Hunter prosecuted the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

    MIL Security OSI –

  • MIL-OSI: NANO Nuclear and University of Illinois Urbana-Champaign Receive Nuclear Regulatory Commission (NRC) Fuel Qualification Methodology Approval for KRONOS MMR™ Energy System

    Source: GlobeNewswire (MIL-OSI)

    Safety Evaluation Issued by NRC Confirms Regulatory Acceptance of Fuel Qualification Methodology, Paving the Way for Eventual KRONOS Microreactor Deployment at University of Illinois Urbana-Champaign

    New York, N.Y., April 22, 2025 (GLOBE NEWSWIRE) — NANO Nuclear Energy Inc. (NASDAQ: NNE) (“NANO Nuclear” or “the Company”), a leading advanced nuclear energy and technology company focused on developing clean energy solutions, is pleased to announce that the U.S. Nuclear Regulatory Commission (NRC) has issued its final Safety Evaluation (SE) approving the Fuel Qualification Methodology Topical Report (FQM TR) for the advanced fuel design to be used in the NANO Nuclear’s stationary KRONOS MMR™ Energy System.

    This important regulatory milestone marks the successful culmination of a rigorous review process and represents a major step toward deployment of the KRONOS reactor prototype at the University of Illinois Urbana-Champaign (U. of I.). The approved Fuel Qualification Methodology defines the regulatory framework and testing approach for the qualification of Fully Ceramic Microencapsulated (FCM®) fuel, which incorporates tri-structural isotropic (TRISO) fuel particles embedded in a silicon carbide matrix. With this latest regulatory breakthrough, NANO Nuclear is now positioned to submit its Construction Permit Application for the KRONOS reactor, with fuel qualification rapidly progressing. NANO Nuclear is advancing its vision to become a leader in small, clean energy technologies that address global energy security and decarbonization goals.

    Figure 1 – NANO Nuclear and University of Illinois Urbana-Champaign Receive Nuclear Regulatory Commission (NRC) Fuel Qualification Methodology Approval for KRONOS MMR™ Energy System

    “This is a major victory for advanced nuclear energy and a transformative moment for NANO Nuclear, bringing us closer to turning the promise of KRONOS into a working reality at U. of I.,” said James Walker, Chief Executive Officer of NANO Nuclear. “With the NRC’s final approval of the FQM Topical Report, we now have the regulatory green light to move forward with the Construction Permit (CP) application for the prototype KRONOS. We thank the NRC for their thorough review. This milestone is a critical enabler for our entire reactor program and affirms the strength of our fuel strategy. The nuclear energy future is coming—and NANO Nuclear is at the center of it.”

    “Fuel is one of the biggest sources of uncertainty in any advanced nuclear project,” Illinois Grainger Engineering Associate Professor Caleb Brooks, Head of the Microreactor Demonstration Program at U. of I. “This favorable regulatory outcome represents a significant reduction in that uncertainty for our project, and the SE establishes a common language between us and the regulator on how the fuel will be shown, with high assurance, to be safe and effective.”

    The FQM TR had previously undergone joint review by the NRC and the Canadian Nuclear Safety Commission (CNSC), with initial participation from the UK’s Office for Nuclear Regulation (ONR) as an observer. NANO Nuclear believes that final approval of the FQM TR by the NRC demonstrates confidence in the methodology’s scientific soundness and regulatory compliance, offering a repeatable pathway for advanced fuel qualification applicable to NANO Nuclear reactors.

    “With this regulatory foundation in place, we are prepared to execute,” said Dr. Florent Heidet, Chief Technology Officer and Head of Reactor Development of NANO Nuclear. “Our next steps include finalizing fuel fabrication timelines, preparing and submitting the construction permit this year, and completing early-stage site work at U. of I., including geotechnical drilling and environmental assessments. We will keep accelerating until the reactor is operating.”

    Figure 2 – Rendering of the KRONOS MMR™ Energy System

    The KRONOS MMR Energy System would be the first advanced microreactor built and operated on a U.S. university campus and will serve as a national platform for research, training, and demonstration. It would also become a centerpiece of U. of I.’s energy innovation initiatives, providing the university with clean, resilient energy while training the next generation of nuclear professionals.

    “NANO Nuclear is doing what others are still planning—we are executing,” said Jay Yu, Founder and Chairman of NANO Nuclear Energy. “The NRC’s approval of the FQM TR is more than a regulatory milestone; it’s a launchpad for reliable, deployable, and efficient nuclear power in the U.S. and beyond.”

    About The Grainger College of Engineering at U. of I.

    The Grainger College of Engineering at the University of Illinois Urbana-Champaign is one of the world’s top-ranked engineering institutions, and a globally recognized leader in engineering education, research and public engagement. With a diverse, tight-knit community of faculty, students and alumni, Grainger Engineering sets the standard for excellence in engineering, driving innovation in the economy and bringing revolutionary ideas to the world. Through robust research and discovery, our faculty, staff, students and alumni are changing our world and making advances once only dreamed about, including the MRI, LED, ILIAC, Mosaic, YouTube, flexible electronics, electric machinery, miniature batteries, imaging the black hole and flight on Mars. The world’s brightest minds from The Grainger College of Engineering tackle today’s toughest challenges. And they are building a better, cooler, safer tomorrow.

    Visit https://grainger.illinois.edu for more information.

    About NANO Nuclear Energy, Inc.

    NANO Nuclear Energy Inc. (NASDAQ: NNE) is an advanced technology-driven nuclear energy company seeking to become a commercially focused, diversified, and vertically integrated company across five business lines: (i) cutting edge portable and other microreactor technologies, (ii) nuclear fuel fabrication, (iii) nuclear fuel transportation, (iv) nuclear applications for space and (v) nuclear industry consulting services. NANO Nuclear believes it is the first portable nuclear microreactor company to be listed publicly in the U.S.

    Led by a world-class nuclear engineering team, NANO Nuclear’s reactor products in development include patented KRONOS MMR™Energy System, a stationary high-temperature gas-cooled reactor that is in construction permit pre-application engagement U.S. Nuclear Regulatory Commission (NRC) in collaboration with University of Illinois Urbana-Champaign (U. of I.), “ZEUS”, a solid core battery reactor, and “ODIN”, a low-pressure coolant reactor, and the space focused, portable LOKI MMR™, each representing advanced developments in clean energy solutions that are portable, on-demand capable, advanced nuclear microreactors.

    Advanced Fuel Transportation Inc. (AFT), a NANO Nuclear subsidiary, is led by former executives from the largest transportation company in the world aiming to build a North American transportation company that will provide commercial quantities of HALEU fuel to small modular reactors, microreactor companies, national laboratories, military, and DOE programs. Through NANO Nuclear, AFT is the exclusive licensee of a patented high-capacity HALEU fuel transportation basket developed by three major U.S. national nuclear laboratories and funded by the Department of Energy. Assuming development and commercialization, AFT is expected to form part of the only vertically integrated nuclear fuel business of its kind in North America.

    HALEU Energy Fuel Inc. (HEF), a NANO Nuclear subsidiary, is focusing on the future development of a domestic source for a High-Assay, Low-Enriched Uranium (HALEU) fuel fabrication pipeline for NANO Nuclear’s own microreactors as well as the broader advanced nuclear reactor industry.

    NANO Nuclear Space Inc. (NNS), a NANO Nuclear subsidiary, is exploring the potential commercial applications of NANO Nuclear’s developing micronuclear reactor technology in space. NNS is focusing on applications such as the LOKI MMR™ system and other power systems for extraterrestrial projects and human sustaining environments, and potentially propulsion technology for long haul space missions. NNS’ initial focus will be on cis-lunar applications, referring to uses in the space region extending from Earth to the area surrounding the Moon’s surface.

    For more corporate information please visit: https://NanoNuclearEnergy.com/

    For further NANO Nuclear information, please contact:

    Email: IR@NANONuclearEnergy.com
    Business Tel: (212) 634-9206

    PLEASE FOLLOW OUR SOCIAL MEDIA PAGES HERE:

    NANO Nuclear Energy LINKEDIN
    NANO Nuclear Energy YOUTUBE
    NANO Nuclear Energy X PLATFORM

    Cautionary Note Regarding Forward Looking Statements

    This news release and statements of NANO Nuclear’s management in connection with this news release contain or may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events, which may impact our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “potential”, “will”, “should”, “could”, “would” or “may” and other words of similar meaning. In this press release, forward-looking statement relate to the NANO Nuclear’s development, demonstration, licensing and commercial plans for the KRONIS MMR, each as described herein. These and other forward-looking statements are based on information available to us as of the date of this news release and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors, which may be beyond our control. For NANO Nuclear, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following: (i) risks related to our U.S. Department of Energy (“DOE”) or related state or non-U.S. nuclear fuel licensing submissions, (ii) risks related the development of new or advanced technology and the acquisition of complimentary technology or businesses, including difficulties with design and testing, cost overruns, regulatory delays, integration issues and the development of competitive technology, (iii) our ability to obtain contracts and funding to be able to continue operations, (iv) risks related to uncertainty regarding our ability to technologically develop and commercially deploy a competitive advanced nuclear reactor or other technology in the timelines we anticipate, if ever, (v) risks related to the impact of U.S. and non-U.S. government regulation, policies and licensing requirements, including by the DOE, the Canadian Nuclear Safety Commission (CNSC) and the U.S. Nuclear Regulatory Commission (NRC), and (vi) similar risks and uncertainties associated with the operating an early stage business a highly regulated and rapidly evolving industry. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement, and NANO Nuclear therefore encourages investors to review other factors that may affect future results in its filings with the SEC, which are available for review at www.sec.gov and at https://ir.nanonuclearenergy.com/financial-information/sec-filings. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.

    Attachment

    The MIL Network –

  • MIL-OSI Security: 18-Year-Old Man Who Led Law Enforcement on Dangerous High-Speed Chase Sentenced to 12 Years in Prison

    Source: Office of United States Attorneys

    Yakima, Washington – Acting United States Attorney Richard R. Barker announced that United States District Judge Mary K. Dimke sentenced Angel Omar Zuniga-Soriano, age 18, to 144 months in prison on one count of Felon in Possession of a Firearm. Judge Dimke also imposed 3 years of supervised release.

    According to court documents and information presented at the sentencing hearing, on June 29, 2024, Zuniga-Soriano, who is involved with the Sureno street gang, was driving a vehicle matching the description of a vehicle used in a robbery earlier that same day in Wapato, Washington. When a police officer in Toppenish, Washington, spotted the vehicle, he activated his overhead lights and attempted to stop the vehicle. Instead, Zuniga-Soriano sped-off and led police on a high-speed chase. Zuniga-Soriano drove on the busy interstate between Toppenish, Sunnyside, and Zillah at speeds of more than 100 miles per hour. During the pursuit, Zuniga-Soriano fired one bullet out of the driver’s side window.

    Ultimately, Zuniga-Soriano pulled into a convenience store parking lot in Zillah, attempting to drive thru the lot.  In an effort to reduce risk to the public, a law enforcement officer then rammed his police vehicle into the vehicle Zuniga-Soriano was driving. As a result, the sergeant driving the police vehicle was injured.

    Even still, Zuniga-Soriano was undeterred.  He took off running, throwing a Glock pistol into a nearby yard.  After a lengthy foot pursuit, law enforcement tackled Zuniga-Soriano in a nearby field.  When the Glock pistol was recovered, law enforcement observed that the gun had a “Glock switch,” which is a modification that attaches to the rear of a Glock handgun and is designed to convert it from semi-automatic firearm into an automatic machine gun.

    Zuniga-Soriano subsequently provided a recorded statement to law enforcement.  Zuniga-Soriano stated that he used to be a “demonic demon” and explained that he used to try to drown puppies in his toilet.  He further advised that he tries to stay away from certain people; otherwise, he ends up falling back to his old ways and “my demonic self comes into me.” Zuniga-Soriano explained that he was not actual a gang member, but was a gang associate.  When asked about the instant case, Zuniga-Soriano stated he had ingested marijuana, blacked out, and could only recall part of what had happened.

    In that same interview, Zuniga-Soriano attempted to claim that he was not actually firing at law enforcement.  Rather, according to Zuniga-Soriano, he was going to commit suicide during the pursuit.  He claimed that he put the gun to his head, but dropped it, which caused the gun to discharge.  When the detective advised Zuniga-Soriano that a Glock firearm does not discharge when you drop it, Zuniga-Soriano recanted and then claimed that he tried to take the gun apart during the pursuit, which caused it to discharge.

    Ultimately, an extended firearm magazine was recovered from inside the vehicle Zuniga-Soriano was driving.  Law enforcement subsequently test-fired the Glock firearm and discovered that it was capable of firing multiple rounds by a single trigger press.

    At the sentencing hearing, Judge Dimke pointed out that despite Zuniga-Soriano only being 18 years of age this was his third firearm conviction.  Judge Dimke also explained that she took into account the dangerousness of the instant offense in pronouncing the twelve-year sentence.

    “The seriousness and nature of this offense cannot be understated,” Acting U.S. Attorney Rich Barker said.  “I am grateful for the courage of the brave law enforcement officers, who ensured Mr. Zuniga-Soriano would not escape apprehension that day.  Obviously firing a gun from a vehicle is extremely dangerous.  However, attempting to elude police officers at such high rates of speed on public roadways presents an equally dangerous risk to our citizens.  Had it not been for a sergeant with the Toppenish Police Department, who put his own life at risk to immediately stop the pursuit, innocent lives of motorists and their families could have been tragically lost.  I also am grateful for Assistant United States Attorney Tom Hanlon’s excellent work on this case. For decades, AUSA Hanlon has dedicated his career to seeking justice and handling many of the most challenging and significant cases within our Yakima office.” 

    “It is amazing that more people were not injured, or worse, by Mr. Zuniga-Soriano’s reckless actions.” said W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle field office. “It is clear from his blatant disregard for the welfare of innocent people that the community will be safer with him behind bars. I commend the brave actions of our partners who were able to bring him into custody despite his irresponsible and dangerous attempts to evade accountability.”

    Based on severity of the Zuniga-Soriano’s actions, and due to the nature of the type of firearm utilized in the offense, the Southeast Washington Safe Streets Task Force was contacted.  The Southeast Washington Safe Streets Task Force consists of law enforcement officers from the Federal Bureau of Investigation, the United States Border Patrol, the Yakima County Sheriff’s Office, and the Toppenish Police Department.  Along with the Safe Streets Task Force, the case was investigated by the Toppenish Police Department, the Yakima County Sheriff’s Office, the Yakama Nation Police Department, the Granger Police Department, the Wapato Police Department, the Washington State Patrol, the Zillah Police Department, and the Federal Bureau of Investigation. The was prosecuted by Assistant United States Attorney and Yakima Branch Manager Thomas J. Hanlon.

    Case 1:24-cr-02069-MKD

    MIL Security OSI –

  • MIL-OSI Security: Louisiana Bounty Hunter Sentenced for Missouri Kidnapping

    Source: Office of United States Attorneys

    ST. LOUIS – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a bounty hunter from Louisiana to the three years he’s spent behind bars for removing a woman from a St. Peters, Missouri home and taking her across state lines against her will.

    Wayne D. Lozier Jr., 46, of the New Orleans area, has been in custody since March 31, 2022.

    Lozier was originally convicted by a jury in 2023 of one count of kidnapping and one count of conspiracy to commit kidnapping. Lozier’s conviction was overturned by the 8th U.S. Court of Appeals because of an issue with a jury instruction. Lozier then pleaded guilty in March, prior to a re-trial, to the same charges. He admitted entering a private residence without first notifying local law enforcement, transporting the victim without her consent and refusing the instructions of a St. Peters Police Department officer to either return the victim or transport her to the nearest law enforcement agency. He also admitted that neither he nor his partner, Jody L. Sullivan, were licensed by the Missouri Department of Commerce and Insurance to operate as surety recovery agents within Missouri.

    Lozier and Sullivan had driven from Louisiana to where the victim was staying at the home of a friend in St. Peters, Missouri. They were attempting to return with the victim to St. Tammany Parish, where she had an arrest warrant for four misdemeanor offenses.

    On May 9, 2019, Lozier handcuffed the victim and he and Sullivan took her away in their SUV. The homeowner contacted police. St. Peters Police Officer Jeffrey Atkins told Lozier on the phone that he was breaking the law and needed to return the victim, but Lozier refused to do so.

    When the victim sought help from clerks at a gas station in Sullivan, Missouri, Lozier shocked the victim multiple times with a Taser and pulled her hair. He and Sullivan then dragged the victim out of the store by the chain that connected her handcuffs and leg. Lozier continued to refuse Officer Atkins’ instructions to return the victim to Missouri. But he did not bring her to Louisiana, instead dropping her off at a detention facility in Mississippi.

    Sullivan, 57, of the New Orleans area, pleaded guilty Sept. 18, 2023, to the conspiracy and kidnapping charges and admitted unlawfully seizing the woman and transporting her across state lines. She was sentenced to five years of probation.

    The FBI and the St. Peters Police Department investigated the case. Assistant U.S. Attorneys Matthew Martin and Donald Boyce prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: FBI Chicago Announces Increased Reward for Information Leading to Arrest & Conviction of Joseph “Troubles” Matos

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    CHICAGO—Douglas S. DePodesta, special agent-in-charge of the Chicago Division of the Federal Bureau of Investigation (FBI), announced today a reward increase for information leading to the arrest and conviction of Joseph “Troubles” Matos.

    Matos is wanted in connection with the shooting death of National Guard member Chrys Carvajal. On July 3, 2021, it is alleged that Matos and a fellow gang member shot and killed Carvajal when he was walking to his car following a party. Matos is believed to be a member of the Milwaukee Kings street gang, a criminal organization whose members and associates have engaged in narcotics trafficking and committed acts of violence, including murder and assault, to acquire and preserve the gang’s perceived territory on the North Side of Chicago, Illinois.

    On May 14, 2024, an arrest warrant was issued for Matos in the United States District Court, Northern District of Illinois, Eastern Division, Chicago, Illinois, after he was charged with murder-in-aid of racketeering and murder through the use of a firearm. Previously, the FBI Chicago Field Office offered a reward of up to $10,000 for information from the public. The FBI is now offering a reward of up to $25,000 for tips leading to the arrest and conviction of Matos.

    Matos should be considered armed and dangerous, and members of the public are asked not to approach him directly.

    Anyone with information, even anonymously, is strongly encouraged to call 1-800-CALL-FBI or submit a tip at tips.fbi.gov.

    Additional resources:

    MIL Security OSI –

  • MIL-OSI Security: Former Owner of Collapsed Nursing Home Empire Sentenced to 36 Months’ Imprisonment for $38 Million Tax Fraud Scheme

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    NEWARK, N.J. – A New York man was sentenced to 36 months in prison for his role in a $38 million employment tax fraud scheme involving nursing homes he owned across the country, U.S. Attorney Alina Habba announced.

    Joseph Schwartz, 65, of Suffern, New York, previously pled guilty to two counts of an indictment charging him with willfully failing to pay over employment taxes withheld from employees of his company, and willfully failing to file an annual financial report (Form 5500) with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored, before U.S. District Judge Susan D. Wigenton in Newark federal court.

    According to documents filed in this case and statements made in court:

    Schwartz, an insurance broker and operator of Skyline Management Group LLC (“Skyline”), with headquarters in New Jersey, willfully failed to pay employment taxes relating to numerous health care and rehabilitation facilities that Skyline operated in 11 states.

    According to the indictment, Schwartz was required to collect, truthfully account for, and pay over to the Internal Revenue Service (“IRS”) trust fund taxes withheld from the pay of employees of Skyline and related companies.  From October 2017 through May 2018, Schwartz caused taxes to be withheld from employees’ pay but failed to then pay over more than $38 million in employment taxes to the IRS.  As an administrator of the Skyline 401K plan, Schwartz further had an obligation to file an annual Form 5500 financial report with the Secretary of Labor for calendar year 2018, but knowingly and willfully failed to file the report.

    U.S. Attorney Habba credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan in Newark; Investigators with the Department of Labor-Employee Benefits Security Administration, under the direction of Regional Director Mark Seidel in the New York Regional Office; special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly; and the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz in the New York Regional Office, with the investigation that led to the sentencing in this case.

    The government is represented by Assistant U.S. Attorneys Daniel H. Rosenblum and Kendall R. Randolph of the Criminal Division in Newark and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.

                                                                           ###

    Defense counsel: Kevin H. Marino, Esq. 

    MIL Security OSI –

  • MIL-OSI Security: Operators of New Jersey Company Sentenced to Prison and Enter Into Related Civil Settlement Agreement for Roles in $127 Million Health Care Fraud and Kickback Scheme

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    NEWARK, N.J. – Two operators of a New Jersey marketing company were sentenced to prison for their roles in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, United States Attorney Alina Habba announced.

    Eric Karlewicz a/k/a “Anthony Mazza,” 46, of Rockland County, New York, and Nicco Romanowski, 33, of Roswell, Georgia, were sentenced by U.S. District Judge Esther Salas in Newark federal court following their guilty pleas to Informations charging conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud.  Karlewicz was sentenced to 51 months in prison and Romanowski was sentenced to 80 months in prison.

    According to documents filed in this case and statements made in court:

    From in or around June 2017 through in or around May 2019, Karlewicz and Romanowski participated in a scheme with durable medical equipment (“DME”) companies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes.  Karlewicz and Romanowski controlled a New Jersey-based marketing company, Empire Pain Center Holdings LLC (“Empire”), though which they and their co-conspirators identified Medicare and TRICARE beneficiaries to target.  Employees of Empire called the beneficiaries to pressure them to agree to accept DME, frequently consisting of back, shoulder, and knee braces. Karlewicz and Romanowski paid Empire’s employees commissions, bonuses, and incentives to encourage them to convince as many beneficiaries as possible to accept DME, regardless of medical necessity.

    Karlewicz and Romanowski, through Empire, then paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors in exchange for prescriptions for the DME. As agreed upon, the doctors signed the prescription orders regardless of medical necessity, often without ever speaking to the patient.  Karlewicz and Romanowski distributed the prescriptions to DME suppliers around the country, with which Empire had additional kickback arrangements. These DME suppliers submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Empire as payment for the doctor’s orders generated through the conspiracy.  Empire received more than $63 million from DME suppliers in exchange for the referrals. 

    In total, Karlewicz and Romanowski caused the submission of false and fraudulent claims to health care benefit programs totaling in excess of $127 million for DME.  Using proceeds from the scheme, Karlewicz and Romanowski purchased luxury vehicles, including a Ferrari, and Lamborghini, a Bentley, and a BMW.

    In addition to the prison terms, Judge Salas sentenced each defendant to three years of supervised release and ordered them to pay $127,600,000 in restitution.  Karlewicz was ordered to forfeit over $63 million, and Romanowski was ordered to forfeit over $5.5 million.

    United States Attorney Habba also announced that Karlewicz and Empire entered into a civil settlement agreement. As part of that civil settlement agreement, Karlewicz and Empire admitted to violating the False Claims Act and agreed to the entry of a consent judgment against them in the amount of $63.8 million.

    The civil settlement agreement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties, called relators, to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The relator, Robert Jackson Tyler, Jr., will receive a share of the funds recovered by the United States pursuant to the False Claims Act.

    United States Attorney Habba credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Acting Special Agent in Charge Christopher Silvestro, with the investigation.

    The government is represented in the criminal case by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit and Senior Trial Counsel Barbara Ward of the Bank Integrity, Recovery, and Money Laundering Unit in Newark.

    The government is represented in the civil case by Assistant U.S. Attorney David V. Simunovich of the Health Care Fraud Unit and Trial Attorney Martha Glover of U.S. Department of Justice, Civil Fraud Section. 

                                                                           ###

    Defense counsel: Darren Gelber, Esq. (for Eric Karlewicz)

                                Alyssa Cimino, Esq. (for Nicco Romanowski)

    MIL Security OSI –

  • MIL-OSI United Kingdom: Additional support provided for Middle East appeal

    Source: Scottish Government

    First Minister announces boost for humanitarian aid.

    First Minister John Swinney has announced an additional £300,000 funding will be provided to support humanitarian aid efforts in the Middle East through the Disasters Emergency Committee (DEC) Appeal and Scottish charities, SCIAF and Mercy Corps.

    This funding, delivered through the Scottish Government’s Humanitarian Emergency Fund programme, will help provide urgent assistance to those affected by the ongoing conflict, including food, clean water, medical care, and shelter for displaced individuals in Gaza, the West Bank, Lebanon and Syria.

    The announcement was made by the First Minister during a parliamentary debate on the international situation in which he also called for Scotland to champion the benefits of international trade, cooperation, and solidarity during this period of international turbulence.

    The First Minister said:

    “I’m pleased to announce a contribution of £240,000 through our Humanitarian Emergency Fund to the Disasters Emergency Committee’s appeal for the Middle East, along with £30,000 each for Scottish charities, SCIAF and Mercy Corps for their responses in Lebanon and Syria.

    “This is in addition to the £250,000 that we provided to this appeal last November and comes at a time when humanitarian needs continue to increase across Gaza, the West Bank, Lebanon and Syria.

    “I believe that wherever we can, we do what is within our power to de-escalate and support recovery from disaster and conflict in our deeply interconnected world.

    “Investing in the wellbeing of the international community is also an investment in our national wellbeing and security and I make no apology for doing so in these turbulent times.”

    The First Minister added:

    “At a time when the US, the UK and other donors have slashed their aid budgets, we in Scotland are committed to continuing to support our Global South partner countries, and more widely to responding to humanitarian emergencies globally.

    “Though we recognise the amounts Scotland contributes may be small in the face of growing need, we will do all we can to ensure it has maximum impact. Scotland will continue to act as a good global citizen.”

    DEC spokesperson Huw Owen said: “This additional donation to the DEC Middle East Humanitarian Appeal from the Scottish Government through its Humanitarian Emergency fund is hugely welcome. 

    “The Appeal has now raised close to £4 million here in Scotland, over £45 million UK wide, which also includes many generous individual donations from the public.  We are hugely grateful for this support.

    “It will bolster DEC charities and their expert local partners’ continuing efforts in Gaza and the wider region, working in incredibly challenging circumstances, to reach the most affected communities with medical care, food and clean water as well as psychological support for traumatised children and their families.”

    Background:

    Humanitarian needs across the Middle East continue to escalate, with nearly half of the population of Gaza facing emergency levels of food insecurity and water, shelter and medicine in desperately short supply. By providing this funding, the DEC and its member charities can ensure that when the current blockade of Gaza is finally lifted, those needs can be addressed without delay.

    The DEC appeal for the Middle East launched on 17 October 2024 and the Scottish Government’s previous contribution of £250,000 supported DEC and partner organisations in delivering humanitarian aid across the region.

    Since the appeal’s launch, generous donations from the public have helped deliver lifesaving assistance, and further contributions remain essential to sustain these efforts. The appeal has raised £3.8m in Scotland and the Scottish public can make a donation at Donate to Middle East Appeal | Disasters Emergency Committee

    MIL OSI United Kingdom –

  • MIL-OSI Security: Hudson County Man Charged with Production, Distribution, and Possession of Child Pornography, and Coercion and Enticement

    Source: Office of United States Attorneys

    NEWARK, N.J. – A Hudson County, New Jersey man was arrested for allegedly inducing multiple minors to send him sexually explicit videos and pictures over online platforms, U.S. Attorney Alina Habba announced.

    Julian Nova, 19, of Bayonne, New Jersey is charged by complaint with two counts of production of child pornography, two counts of coercion and enticement, one count of distribution of child pornography, and one count of possession of child pornography. Nova appeared on April 17, 2025, before U.S. Magistrate Judge James B. Clark, III in Newark federal court and was detained.

    According to documents filed in this case and statements made in court:

    In or around October and November 2023, Nova coerced multiple minor victims to produce child pornography, which he then distributed online. After gaining the victims’ trust, including by posing as a teenage girl, Nova enticed the victims to send child pornography of themselves. Nova then blackmailed the minor victims into producing additional child pornography, some of which included acts of self-degradation, by threatening to distribute the existing images and videos to the minor victims’ family and friends if they did not comply.

    The charges of production of child pornography carry a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. The charges of coercion and enticement carry a mandatory minimum penalty of 10 years in prison, a maximum penalty of life imprisonment, and a $250,000 fine. The charge of distribution of child pornography carries a mandatory minimum of 5 years in prison, a maximum penalty of 20 years in prison, and a $250,000 fine. The charge of possession of child pornography carries a maximum potential penalty of 10 years in prison and a $250,000 fine.

    U.S. Attorney Habba credited special agents of the FBI’s Child Exploitation Operational Unit with the investigation leading to the charges.  She also thanked the FBI Newark’s Child Exploitation and Human Trafficking Task Force under the direction of Acting Special Agent in Charge Terence Reilly for their assistance.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc.

    The government is represented by Assistant U.S. Attorney Lauren Kober of the Criminal Division in Newark and Trial Attorney Adam Braskich of the U.S. Department of Justice’s Child Exploitation and Obscenity Section.

    The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

                                                                           ###

    Defense counsel: Carol Dominguez, Esq.

    MIL Security OSI –

  • MIL-OSI Security: Wisconsin Man Pleads Guilty to Possession of Chemical Weapon Precursors

    Source: Office of United States Attorneys

    Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on April 21, 2025, United States District Judge Brett Ludwig accepted the guilty plea of James Morgan (formerly Karactus Blome) to one count of possession of chemical weapon precursors—chemicals that combine to create chlorine and chlorine gas—not intended for peaceful purposes, in violation of Title 18, United States Code, Section 229(a).

    According to court documents, on December 21, 2023, the Federal Bureau of Investigation (FBI) executed a search warrant at Morgan’s storage unit and found the precursor chemicals. Morgan had studied chemistry at the University of Wisconsin–Whitewater and had described himself as a weapon designer who did not need a conventional weapon. In a video, Morgan displayed the chemicals and said they were for making a lot of chlorine very quickly. In messages in 2022, he said that what he had was “scary,” and that the chemicals react to produce a lot of chlorine gas, which can be “effective if your enemy is not ready for it.” He sent links for purchasing the chemicals and discussed the amounts needed to make a lot of chlorine gas really fast. In messages in 2023, Morgan discussed a plan to defeat the government, if it came for his guns, by producing a large amount of chlorine that he claimed could be used against approximately twenty government agents. The FBI Laboratory determined that the chemicals Morgan possessed could produce a large amount of chlorine that could result in rapid, serious health effects, including death.

    Sentencing is scheduled for August 1, 2025, before Judge Ludwig. Morgan faces up to life in prison, a $250,000 fine, and five years of supervised release after any period of imprisonment.

    The FBI, the Janesville Police Department, and the Whitewater Police Department investigated the case, which also resulted in Morgan’s conviction for possession of destructive devices in the Western District of Wisconsin. 

    Assistant U.S. Attorney John Scully is prosecuting the case in the Eastern District of Wisconsin, Assistant U.S. Attorney Meredith Duchemin prosecuted the case in the Western District of Wisconsin, and Trial Attorney Justin Sher of the National Security Division, Counterterrorism Section, assisted on both prosecutions.

    ###

    For further information contact:

    Public Information Officer

    Kenneth.Gales@usdoj.gov

    (414) 297-1700

    Follow us on Twitter

    MIL Security OSI –

  • MIL-OSI USA: A Leader of Notorious Philadelphia ‘10th and O Crew’ Sentenced to Six Years for Opioid Drug Conspiracy

    Source: US State of California

    A South Philadelphia man was sentenced yesterday in the District of New Jersey to six years in prison for conspiracy to distribute oxycodone, a highly addictive controlled substance. 

    According to court documents, between January 2022 and February 2024, Michael Procopio, 50, coordinated the unlawful sale of prescription oxycodone pills as a leader of South Philadelphia’s notorious “10th and O Crew.” Procopio obtained the pills from doctors’ offices in the area. He then unlawfully distributed them through a network of intermediaries. In February 2024, during a search of Procopio’s residence pursuant to a search warrant, law enforcement found oxycodone, Adderall (amphetamine and dextroamphetamine), and other drugs stored in a safe concealed in a hollowed-out dictionary. During the execution of the search warrant, Procopio stated, “take me to jail” and “I f***ed up.”

    Pursuant to the U.S. Sentencing Guidelines, one gram of actual oxycodone is equivalent to 6,700 grams of converted drug weight. Procopio admitted to distributing approximately 14,925 milligrams of oxycodone, which equates to between 80 and 100 kilograms of opioids by converted drug weight.

    “The defendant led a criminal ‘crew’ that diverted addictive prescription drugs to sell on the streets of Philadelphia,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “The unlawful distribution of opioids ravages communities, whether it’s fentanyl from overseas or prescription oxycodone obtained from a doctor. The Department of Justice is committed to working with our law enforcement partners to eradicate the illegal sale of these dangerous drugs.” 

    In June 2024, Procopio pleaded guilty to conspiracy to unlawfully distribute controlled substances. Court documents show that Procopio was previously convicted of sexual assault in Pennsylvania.  

    Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation’s (FBI) Philadelphia Field Office and Special Agent in Charge Cheryl Ortiz of the Drug Enforcement Administration (DEA) New Jersey Field Division joined the announcement.

    The FBI, DEA, and the Pennsylvania Office of Attorney General, Medicaid Fraud Control Unit investigated the case.

    Trial Attorneys Paul J. Koob and Nicholas K. Peone of the Criminal Division’s Fraud Section prosecuted the case.

    The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Department of Health and Human Services’ Office of Inspector General, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

    MIL OSI USA News –

  • MIL-OSI Security: A Leader of Notorious Philadelphia ‘10th and O Crew’ Sentenced to Six Years for Opioid Drug Conspiracy

    Source: United States Department of Justice Criminal Division

    A South Philadelphia man was sentenced yesterday in the District of New Jersey to six years in prison for conspiracy to distribute oxycodone, a highly addictive controlled substance. 

    According to court documents, between January 2022 and February 2024, Michael Procopio, 50, coordinated the unlawful sale of prescription oxycodone pills as a leader of South Philadelphia’s notorious “10th and O Crew.” Procopio obtained the pills from doctors’ offices in the area. He then unlawfully distributed them through a network of intermediaries. In February 2024, during a search of Procopio’s residence pursuant to a search warrant, law enforcement found oxycodone, Adderall (amphetamine and dextroamphetamine), and other drugs stored in a safe concealed in a hollowed-out dictionary. During the execution of the search warrant, Procopio stated, “take me to jail” and “I f***ed up.”

    Pursuant to the U.S. Sentencing Guidelines, one gram of actual oxycodone is equivalent to 6,700 grams of converted drug weight. Procopio admitted to distributing approximately 14,925 milligrams of oxycodone, which equates to between 80 and 100 kilograms of opioids by converted drug weight.

    “The defendant led a criminal ‘crew’ that diverted addictive prescription drugs to sell on the streets of Philadelphia,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “The unlawful distribution of opioids ravages communities, whether it’s fentanyl from overseas or prescription oxycodone obtained from a doctor. The Department of Justice is committed to working with our law enforcement partners to eradicate the illegal sale of these dangerous drugs.” 

    In June 2024, Procopio pleaded guilty to conspiracy to unlawfully distribute controlled substances. Court documents show that Procopio was previously convicted of sexual assault in Pennsylvania.  

    Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation’s (FBI) Philadelphia Field Office and Special Agent in Charge Cheryl Ortiz of the Drug Enforcement Administration (DEA) New Jersey Field Division joined the announcement.

    The FBI, DEA, and the Pennsylvania Office of Attorney General, Medicaid Fraud Control Unit investigated the case.

    Trial Attorneys Paul J. Koob and Nicholas K. Peone of the Criminal Division’s Fraud Section prosecuted the case.

    The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Department of Health and Human Services’ Office of Inspector General, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

    MIL Security OSI –

  • MIL-OSI Security: FBI Marks the 45th Anniversary of the FBI’s Joint Terrorism Task Forces

    Source: Federal Bureau of Investigation (FBI) State Crime News

    LEXINGTON, SC—The FBI Columbia Field Office this week is recognizing the 45th anniversary of the Joint Terrorism Task Force (JTTF).

    The initial JTTF began in 1989 in New York City with a partnership between the New York Field Office and the New York City Police Department. Then, leaders from the agencies discussed how to combine expertise and resources to locate terrorist organizations responsible for attacks in the city. These conversations led to the creation of the first JTTF.

    The JTTFs are the nation’s front-line defense against international and domestic terrorism. JTTFs gather evidence, follow leads, make arrets, provide security for special events, collect and share intelligence, and respond to various threats and incidents.

    Following the 9/11 attacks, FBI leadership directed all FBI field offices to establish a JTTF. In addition, the FBI established its National Joint Terrorism Task Force to support the local task forces in June of 2002. The NJTTF, at FBI Headquarters, enhances communication, coordination, and cooperation from partner agencies. JTTFs have disrupted dozens of plots in the past four decades.

    Today, there are nearly 200 task forces around the country, including at least one in the FBI’s field offices with about 4,400 members from participating state, local, and federal agencies.

    The FBI Columbia field office’s JTFF has 19 task force officers and analysts from 12 participating agencies across South Carolina.

    “The persistent threat of terrorism across South Carolina demands a united front,” said Reid Davis, acting special agent in charge of the FBI Columbia Field Office. “The FBI Columbia Field Office relies on our strong partnerships with local, state, and federal law enforcement agencies and their JTTF members to swiftly disrupt threats and respond with precision whenever danger arises.”

    The FBI Columbia Field Office counts numerous disruptions of its own, including a plan by a Barnwell man to detonate explosives in public locations in Pickens County in 2019 to express his frustration with the Department of Social Services. One device exploded near the Pickens County Courthouse causing minor damage to the building. Michael Lambert Seabrooke,41, was sentenced in 2021 to 12 years in federal prison for possession of explosive devices and two counts of malicious damage and attempt to damage by means of explosive materials.

    The FBI Columbia JTTF also investigated a case where individuals shot at a Duke Energy regulator bank in Dalzell in 2023 which caused significant damage. One suspect, Donald Ray Hurst, 35, of Sumter, pleaded guilty to destruction of an energy facility, and is awaiting sentencing. A second individual allegedly involved, Chad Allen Kron, 33, of Sumter, was charged with destruction of an energy facility and possessing an unregistered firearm. Kron is awaiting trial.

    If you see or know about suspicious activity involving chemical, biological, or radiological materials, report it to 1-800-CALL-FBI. You can also submit online tips at tips.fbi.gov.

    MIL Security OSI –

  • MIL-OSI Security: Parkersburg Man Sentenced to Prison for Role in Charleston Methamphetamine Trafficking Organization and Violating Supervised Release

    Source: Federal Bureau of Investigation FBI Crime News (b)

    CHARLESTON, W.Va. – Anthony Michael Mowery, 48, of Parkersburg, was sentenced today to nine years in prison, to be followed by four years of supervised release, for conspiracy to distribute 50 grams or more of a mixture and substance containing methamphetamine and violating supervised release.

    According to court documents and statements made in court, from in or about January 2024 to in or about May 2024, Mowery conspired with others in a Drug Trafficking Organization (DTO) that distributed methamphetamine in the Charleston area. Mowery facilitated meetings during which his co-conspirators exchanged large quantities of methamphetamine for distribution.

    On May 5, 2024, Mowery arranged for co-conspirator Michael Dale Cain to travel to Charleston for the purpose of picking up approximately 3 pounds of methamphetamine from another co-conspirator, Kirt Ray King, that Cain intended to transport to Parkersburg and distribute to others. After Cain acquired the methamphetamine, he was stopped by law enforcement officers who searched his vehicle, seized the methamphetamine, and arrested Cain.

    Mowery has a long criminal history that includes prior convictions for unlawful assault, assault, battery, child abuse, destruction of property, and fleeing from an officer. At the time of this offense, Mowery was serving a term of supervised release as a result of his July 5, 2018, conviction for being a felon in possession of a firearm. Today’s sentence includes two years in prison, to run concurrently to the nine-year sentence imposed by the Court, for committing a crime while on supervised release.

    Mowery is among four individuals indicted by a federal grand jury in the DTO conspiracy. All four pleaded guilty. Cain, 49, of Parkersburg, was sentenced on January 29, 2025, to eight years and one month in prison, to be followed by three years of supervised release, for conspiracy to distribute methamphetamine. King, 48, of Charleston, pleaded guilty on January 27, 2025, to conspiracy to distribute 500 grams or more of a mixture and substance containing methamphetamine and is scheduled to be sentenced on June 23, 2025. Co-defendant John Wayne Harkless, 46, of Charleston, pleaded guilty on November 20, 2024, to conspiracy to distribute methamphetamine and is scheduled to be sentenced on June 23, 2025.

    Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI).

    United States District Judge Joseph R. Goodwin imposed the sentences. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.

    The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-95.

    ###

     

     

    MIL Security OSI –

  • MIL-OSI Security: Arizona Man Indicted for Federal Assault Charges

    Source: Federal Bureau of Investigation FBI Crime News (b)

    ALBUQUERQUE – An Arizona man has been charged by indictment with assault following an alleged incident that left the victim with severe injuries.

    According to court records, on September 23, 2023, Emerson Hayes, 61, an enrolled member of the Navajo Nation, assaulted John Doe with a knife, causing serious bodily injury.

    Hayesis charged with assault with a dangerous weapon and assault resulting in serious bodily injury and will remain in custody pending trial, which has not been set. If convicted of the current charges, Hayes faces up to 10 years in prison.

    Acting U.S. Attorney Holland S. Kastrin and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.

    The Federal Bureau of Investigation’s Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Investigation and Department of Criminal Investigations. Assistant U.S. Attorney Jesse Pecoraro is prosecuting the case.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI: Dime Community Bancshares, Inc. Reports First Quarter 2025 EPS of $0.45; Adjusted EPS of $0.57

    Source: GlobeNewswire (MIL-OSI)

    Continued Growth in Core Deposits and Business Loans On a Year-over-Year Basis

    Net Interest Margin Expands by 16 basis points on a Linked Quarter Basis to 2.95%

    HAUPPAUGE, N.Y., April 22, 2025 (GLOBE NEWSWIRE) — Dime Community Bancshares, Inc. (NASDAQ: DCOM) (the “Company” or “Dime”), the parent company of Dime Community Bank (the “Bank”), today reported net income available to common stockholders of $19.6 million for the quarter ended March 31, 2025, or $0.45 per diluted common share, compared to net loss available to common stockholders of $22.2 million, or $(0.54) per diluted common share, for the quarter ended December 31, 2024 and net income available to common stockholders of $15.9 million for the quarter ended March 31, 2024, or $0.41 per diluted common share.

    First quarter 2025 results included $7.2 million of pre-tax expenses related to the final settlements associated with the termination of the legacy Bridgehampton National Bank pension plan.

    Adjusted net income available to common stockholders (non-GAAP) totaled $24.7 million for the quarter ended March 31, 2025, an increase of 42% versus the prior quarter and an increase of 67% versus the quarter ended March 31, 2024 (see “Non-GAAP Reconciliation” tables at the end of this news release). Adjusted EPS (non-GAAP) totaled $0.57 per share for the quarter ended March 31, 2025, an increase of 36% versus the prior quarter and an increase of 50% versus the quarter ended March 31, 2024.

    Stuart H. Lubow, President and Chief Executive Officer (“CEO”) of the Company, stated, “Our first quarter results were marked by strong Net Interest Margin (“NIM”) expansion and continued progress in diversifying our balance sheet. Our enhanced earnings power and robust capital ratios position us well for future growth. As outlined below we have made a strong start to the year from a recruiting standpoint, and are poised to continue to add talented individuals and gain market share in the quarters ahead.”

    Year-to-date Recruiting Update

    • Hired Tom Geisel to Senior Executive Leadership Team. Mr. Geisel was instrumental in the growth and transformation of Sterling National Bank into a highly profitable $30 billion institution;
    • Hired Robert Rowe as incoming Chief Credit Officer (experience includes Chief Credit Officer at Sterling National Bank and Chief Risk Officer at CIT); incumbent Chief Credit Officer Brian Teplitz to retire at the end of May 2025;
    • Hired Jim LoGatto as an Executive Vice President to build Dime’s presence in Manhattan; Mr. LoGatto was previously the Director of US Private Banking at Israel Discount Bank of New York;
    • Hired Toni Badolato as Group Leader to grow lending presence on Long Island; Ms. Badolato was previously with M&T;
    • Hired George Taitt as Group Director and Amy Grandy as Associate Group Director to strengthen deposit presence in Queens; the Group was previously with the former Signature Bank and its successor, Flagstar Bank.

    Highlights for the First Quarter of 2025 included:

    • Total deposits increased $717.0 million on a year-over-year basis;
    • Core deposits (excluding brokered and time deposits) increased $1.35 billion on a year-over-year basis;
    • The ratio of average non-interest-bearing deposits to average total deposits for the first quarter was 29.5%;
    • The cost of total deposits declined by 19 basis points versus the prior quarter;
    • The net interest margin increased to 2.95% for the first quarter of 2025 compared to 2.79% for the prior quarter;
    • The Company’s Common Equity Tier 1 Ratio increased to 11.12% at the end of the first quarter.

    Management’s Discussion of Quarterly Operating Results

    Net Interest Income

    Net interest income for the first quarter of 2025 was $94.2 million compared to $91.1 million for the fourth quarter of 2024 and $71.5 million for the first quarter of 2024.

    The table below provides a reconciliation of the reported net interest margin (“NIM”) and adjusted NIM excluding the impact of purchase accounting accretion on the loan portfolio.

                         
    (Dollars in thousands)   Q1 2025   Q4 2024   Q1 2024  
    Net interest income   $ 94,213     $ 91,098     $ 71,530    
    Purchase accounting amortization (accretion) on loans (“PAA”)     (124 )     (1,268 )     (82 )  
    Adjusted net interest income excluding PAA on loans (non-GAAP)   $ 94,089     $ 89,830     $ 71,448    
                         
    Average interest-earning assets   $ 12,963,320     $ 12,974,958     $ 13,015,755    
                         
    NIM(1)     2.95   %   2.79   %   2.21   %
    Adjusted NIM excluding PAA on loans (non-GAAP)(2)     2.94   %   2.75   %   2.21   %

    (1)   NIM represents net interest income divided by average interest-earning assets.
    (2)   Adjusted NIM excluding PAA on loans represents adjusted net interest income, which excludes PAA amortization on acquired loans divided by average interest-earning assets.

    Mr. Lubow commented, “While there has been a fair bit of volatility in the macroeconomic environment in recent weeks, Dime has multiple levers to grow our NIM over time.

    • First, we have a significant loan repricing opportunity starting in the second half of 2025 that will continue through 2027, assuming current forecasted interest rate levels remain accurate.
    • Second, and as demonstrated in the most recent rate cutting cycle, should the Federal Reserve cut short term rates in 2025 we anticipate a reduction in deposit costs, which will drive further NIM expansion.
    • Finally, core deposit growth and a continued focus on business loan growth will benefit our NIM over time as we continue to grow customers and hire productive teams.”

    Loan Portfolio

    The ending weighted average rate (“WAR”) on the total loan portfolio was 5.25% at March 31, 2025, a 1 basis point decrease compared to the ending WAR of 5.26% on the total loan portfolio at December 31, 2024.

    Outlined below are loan balances and WARs for the quarter ended as indicated.

                                     
        March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands)   Balance   WAR(1)   Balance   WAR(1)   Balance   WAR(1)  
    Loans held for investment balances at period end:                                
    Business loans(2)   $ 2,788,848   6.55 % $ 2,726,602   6.56 % $ 2,327,403   6.90 %
    One-to-four family residential, including condominium and cooperative apartment     961,562   4.77     952,195   4.72     873,671   4.48  
    Multifamily residential and residential mixed-use(3)(4)     3,780,078   4.46     3,820,492   4.49     3,996,654   4.57  
    Non-owner-occupied commercial real estate     3,191,536   5.07     3,231,398   5.13     3,386,333   5.24  
    Acquisition, development, and construction     140,309   7.96     136,172   7.95     175,352   8.40  
    Other loans     6,402   10.39     5,084   10.51     5,170   7.10  
    Loans held for investment   $ 10,868,735   5.25 % $ 10,871,943   5.26 % $ 10,764,583   5.34 %

    (1) WAR is calculated by aggregating interest based on the current loan rate from each loan in the category, adjusted for non-accrual loans, divided by the total balance of loans in the category.
    (2) Business loans include commercial and industrial loans and owner-occupied commercial real estate loans.
    (3) Includes loans underlying multifamily cooperatives.
    (4) While the loans within this category are often considered “commercial real estate” in nature, multifamily and loans underlying cooperatives are reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

    Outlined below are the loan originations, for the quarter ended as indicated.

                       
    (Dollars in millions)   Q1 2025   Q4 2024   Q1 2024
    Loan originations   $ 71.5   $ 187.5   $ 98.3

    Deposits and Borrowed Funds

    Period end total deposits (including mortgage escrow deposits) at March 31, 2025 were $11.61 billion, compared to $11.69 billion at December 31, 2024 and $10.90 billion at March 31, 2024. The Company reduced its brokered deposit levels to $285.6 million at March 31, 2025, compared to $422.8 million at December 31, 2024 and $897.1 million at March 31, 2024.

    Total Federal Home Loan Bank advances were $508.0 million at March 31, 2025 compared to $608.0 million at December 31, 2024 and $773.0 million at March 31, 2024.

    Non-Interest Income

    Non-interest income was $9.6 million during the first quarter of 2025, compared to a loss of $33.9 million during the fourth quarter of 2024, and income of $10.5 million during the first quarter of 2024. Fourth quarter 2024 results included $42.8 million of pre-tax loss-on-sale of securities related to the re-positioning of the available-for-sale securities portfolio.

    Non-Interest Expense

    Total non-interest expense was $65.5 million during the first quarter of 2025, $60.6 million during the fourth quarter of 2024, and $52.5 million during the first quarter of 2024. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets, severance expense, settlement loss related to the termination of a legacy pension plan, and the FDIC special assessment, adjusted non-interest expense was $58.0 million during the first quarter of 2025, $57.7 million during the fourth quarter of 2024, and $51.7 million during the first quarter of 2024 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    Mr. Lubow commented, “Excluding the impact of the legacy Bridgehampton National Bank pension plan termination, first quarter expenses were well-controlled and in-line with our previous expectations.”

    The ratio of non-interest expense to average assets was 1.90% during the first quarter of 2025, compared to 1.76% during the linked quarter and 1.52% during the first quarter of 2024. Excluding the impact of the loss on extinguishment of debt, amortization of other intangible assets, severance expense, the FDIC special assessment and settlement loss related to the termination of a legacy pension plan, the ratio of adjusted non-interest expense to average assets was 1.68% during the first quarter of 2025, 1.68% during the fourth quarter of 2024, and 1.50% during the first quarter of 2024 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    The efficiency ratio was 63.1% during the first quarter of 2025, compared to 105.9% during the linked quarter and 64.0% during the first quarter of 2024. Excluding the impact of net (gain) loss on sale of securities and other assets, fair value change in equity securities and loans held for sale, severance expense, the FDIC special assessment, settlement loss related to the termination of a legacy pension plan, loss on extinguishment of debt and amortization of other intangible assets the adjusted efficiency ratio was 55.8% during the fourth quarter of 2024, compared to 58.0% during the linked quarter and 64.7% during the first quarter of 2024 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    Income Tax Expense

    Income tax expense was $7.3 million during the first quarter of 2025, $3.3 million during the fourth quarter of 2024, and $6.6 million during the first quarter of 2024. The fourth quarter of 2024 income tax expense was inclusive of $9.1 million of income tax expense related to the taxable gain and Modified Endowment Contract Tax (“MEC”) Tax on the surrender of legacy BOLI assets. The effective tax rate for the first quarter of 2025 was 25.3%. Excluding the tax impact of the BOLI surrender, the fourth quarter 2024 effective rate was a tax benefit of 33.5%. The effective tax rate for the first quarter of 2024 was 27.1%.

    Credit Quality

    Non-performing loans were $58.0 million at March 31, 2025, compared to $49.5 million at December 31, 2024 and $34.8 million at March 31, 2024.

    A credit loss provision of $9.6 million was recorded during the first quarter of 2025, compared to a credit loss provision of $13.7 million during the fourth quarter of 2024, and a credit loss provision of $5.2 million during the first quarter of 2024.

    Capital Management

    Stockholders’ equity increased $15.5 million to $1.41 billion at March 31, 2025, compared to $1.40 billion at December 31, 2024.

    The Company’s and the Bank’s regulatory capital ratios continued to be in excess of all applicable regulatory requirements as of December 31, 2024. All risk-based regulatory capital ratios increased in the first quarter of 2025.

    Dividends per common share were $0.25 during the first quarter of 2025 and the fourth quarter of 2024, respectively.

    Book value per common share was $29.58 at March 31, 2025 compared to $29.34 at December 31, 2024.

    Tangible common book value per share (which represents common equity less goodwill and other intangible assets, divided by the number of shares outstanding) was $25.94 at March 31, 2025 compared to $25.68 at December 31, 2024 (see “Non-GAAP Reconciliation” tables at the end of this news release).

    Earnings Call Information

    The Company will conduct a conference call at 8:30 a.m. (ET) on Tuesday, April 22, 2025, during which CEO Lubow will discuss the Company’s first quarter 2025 financial performance, with a question-and-answer session to follow.

    Participants may access the conference call via webcast using this link: https://edge.media-server.com/mmc/p/cbadbvnq. To participate via telephone, please register in advance using this link: https://register-conf.media-server.com/register/BIafdc630ea47c427ea6661eb613e46913. Upon registration, all telephone participants will receive a one-time confirmation email detailing how to join the conference call, including the dial-in number along with a unique PIN that can be used to access the call. All participants are encouraged to dial-in 10 minutes prior to the start time.

    A replay of the conference call and webcast will be available on-demand for 12 months at https://edge.media-server.com/mmc/p/cbadbvnq.

    ABOUT DIME COMMUNITY BANCSHARES, INC.
    Dime Community Bancshares, Inc. is the holding company for Dime Community Bank, a New York State-chartered trust company with over $14 billion in assets and the number one deposit market share among community banks on Greater Long Island (1).

    (1) Aggregate deposit market share for Kings, Queens, Nassau & Suffolk counties for community banks with less than $20 billion in assets.

    This news release contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These statements may be identified by use of words such as “annualized,” “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “likely,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar terms and phrases, including references to assumptions.

    Forward-looking statements are based upon various assumptions and analyses made by the Company in light of management’s experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company’s control) that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on such statements. Factors that could affect our results include, without limitation, the following: the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control; there may be increases in competitive pressure among financial institutions or from non-financial institutions; changes in the interest rate environment may affect demand for our products and reduce interest margins and the value of our investments; changes in government monetary or fiscal policies and actions may adversely affect our customers, cost of credit and overall result of operations; changes in deposit flows, the cost of funds, loan demand or real estate values may adversely affect the business of the Company; changes in the quality and composition of the Company’s loan or investment portfolios or unanticipated or significant increases in loan losses may negatively affect the Company’s financial condition or results of operations; changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently; changes in corporate and/or individual income tax laws may adversely affect the Company’s financial condition or results of operations; general socio-economic conditions, public health emergencies, international conflict, inflation, and recessionary pressures, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates and may adversely affect our customers, our financial results and our operations; legislation or regulatory changes may adversely affect the Company’s business; technological changes may be more difficult or expensive than the Company anticipates; there may be failures or breaches of information technology security systems; success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates; there may be difficulties or unanticipated expense incurred in the consummation of new business initiatives or the integration of any acquired entities; and litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections entitled “Forward-Looking Statements” and “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and updates set forth in the Company’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

    Contact: Avinash Reddy  
    Senior Executive Vice President – Chief Financial Officer  
    718-782-6200 extension 5909  
    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (In thousands)
     
     
        March 31,   December 31,   March 31,
        2025     2024     2024  
    Assets:                  
    Cash and due from banks   $ 1,030,702     $ 1,283,571     $ 370,852  
    Securities available-for-sale, at fair value     710,579       690,693       859,216  
    Securities held-to-maturity     631,334       637,339       589,331  
    Loans held for sale     2,527       22,625       8,973  
    Loans held for investment, net:                  
    Business loans(1)     2,788,848       2,726,602       2,327,403  
    One-to-four family and cooperative/condominium apartment     961,562       952,195       873,671  
    Multifamily residential and residential mixed-use(2)(3)     3,780,078       3,820,492       3,996,654  
    Non-owner-occupied commercial real estate     3,191,536       3,231,398       3,386,333  
    Acquisition, development and construction     140,309       136,172       175,352  
    Other loans     6,402       5,084       5,170  
    Allowance for credit losses     (90,455 )     (88,751 )     (76,068 )
    Total loans held for investment, net     10,778,280       10,783,192       10,688,515  
    Premises and fixed assets, net     33,650       34,858       44,501  
    Restricted stock     66,987       69,106       74,346  
    BOLI     389,167       290,665       352,277  
    Goodwill     155,797       155,797       155,797  
    Other intangible assets     3,644       3,896       4,753  
    Operating lease assets     45,657       46,193       51,988  
    Derivative assets     98,740       116,496       135,162  
    Accrued interest receivable     56,044       55,970       55,369  
    Other assets     94,574       162,857       110,012  
    Total assets   $ 14,097,682     $ 14,353,258     $ 13,501,092  
    Liabilities:                  
    Non-interest-bearing checking (excluding mortgage escrow deposits)   $ 3,245,409     $ 3,355,829     $ 2,819,481  
    Interest-bearing checking     950,090       1,079,823       635,640  
    Savings (excluding mortgage escrow deposits)     1,939,852       1,927,903       2,347,114  
    Money market     4,271,363       4,198,784       3,440,083  
    Certificates of deposit     1,121,068       1,069,081       1,555,157  
    Deposits (excluding mortgage escrow deposits)     11,527,782       11,631,420       10,797,475  
    Non-interest-bearing mortgage escrow deposits     88,138       54,715       101,229  
    Interest-bearing mortgage escrow deposits     4       6       173  
    Total mortgage escrow deposits     88,142       54,721       101,402  
    FHLBNY advances     508,000       608,000       773,000  
    Other short-term borrowings     —       50,000       —  
    Subordinated debt, net     272,370       272,325       200,174  
    Derivative cash collateral     85,230       112,420       132,900  
    Operating lease liabilities     48,432       48,993       54,727  
    Derivative liabilities     92,516       108,347       122,112  
    Other liabilities     63,197       70,515       79,931  
    Total liabilities     12,685,669       12,956,741       12,261,721  
    Stockholders’ equity:                  
    Preferred stock, Series A     116,569       116,569       116,569  
    Common stock     461       461       416  
    Additional paid-in capital     623,305       624,822       492,834  
    Retained earnings     803,202       794,526       819,130  
    Accumulated other comprehensive loss (“AOCI”), net of deferred taxes     (39,045 )     (45,018 )     (85,466 )
    Unearned equity awards     (12,909 )     (7,640 )     (10,191 )
    Treasury stock, at cost     (79,570 )     (87,203 )     (93,921 )
    Total stockholders’ equity     1,412,013       1,396,517       1,239,371  
    Total liabilities and stockholders’ equity   $ 14,097,682     $ 14,353,258     $ 13,501,092  

    (1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and Paycheck Protection Program (“PPP”) loans.
    (2) Includes loans underlying multifamily cooperatives.
    (3) While the loans within this category are often considered “commercial real estate” in nature, multifamily and loans underlying cooperatives are here reported separately from commercial real estate loans in order to emphasize the residential nature of the collateral underlying this significant component of the total loan portfolio.

    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
    (Dollars in thousands except share and per share amounts)
     
        Three Months Ended
        March 31,   December 31,   March 31,
        2025   2024     2024  
    Interest income:                  
    Loans   $ 142,705   $ 148,000     $ 143,565  
    Securities     11,323     10,010       7,880  
    Other short-term investments     7,837     7,473       9,564  
    Total interest income     161,865     165,483       161,009  
    Interest expense:                  
    Deposits and escrow     58,074     64,773       73,069  
    Borrowed funds     8,381     8,542       14,697  
    Derivative cash collateral     1,197     1,070       1,713  
    Total interest expense     67,652     74,385       89,479  
    Net interest income     94,213     91,098       71,530  
    Provision for credit losses     9,626     13,715       5,210  
    Net interest income after provision     84,587     77,383       66,320  
    Non-interest income:                  
    Service charges and other fees     4,643     3,942       4,544  
    Title fees     98     226       133  
    Loan level derivative income     61     491       406  
    BOLI income     3,993     2,825       2,461  
    Gain on sale of Small Business Administration (“SBA”) loans     82     22       253  
    Gain on sale of residential loans     32     83       77  
    Fair value change in equity securities and loans held for sale     18     15       (842 )
    Net loss on sale of securities     —     (42,810 )     —  
    Gain on sale of other assets     —     554       2,968  
    Other     706     791       467  
    Total non-interest income (loss)     9,633     (33,861 )     10,467  
    Non-interest expense:                  
    Salaries and employee benefits     35,651     35,761       32,037  
    Severance     76     1,254       42  
    Occupancy and equipment     8,002     7,569       7,368  
    Data processing costs     4,794     4,483       4,313  
    Marketing     1,666     1,897       1,497  
    Professional services     2,116     2,345       1,467  
    Federal deposit insurance premiums(1)     2,047     2,116       2,239  
    Loss on extinguishment of debt     —     —       453  
    Loss due to pension settlement     7,231     1,215       —  
    Amortization of other intangible assets     252     285       307  
    Other     3,676     3,688       2,788  
    Total non-interest expense     65,511     60,613       52,511  
    Income (loss) before taxes     28,709     (17,091 )     24,276  
    Income tax expense(2)     7,251     3,322       6,585  
    Net income (loss)     21,458     (20,413 )     17,691  
    Preferred stock dividends     1,822     1,821       1,821  
    Net income (loss) available to common stockholders   $ 19,636   $ (22,234 )   $ 15,870  
    Earnings (loss) per common share (“EPS”):                  
    Basic   $ 0.45   $ (0.54 )   $ 0.41  
    Diluted   $ 0.45   $ (0.54 )   $ 0.41  
                       
    Average common shares outstanding for diluted EPS     42,948,690     40,767,161       38,255,559  

    (1) Fourth quarter of 2024 included $0.1 million of pre-tax expense related to the FDIC special assessment for the recovery of losses related to the closures of Silicon Valley Bank and Signature Bank.
    (2) Fourth quarter of 2024 includes $9.1 million of income tax expense related to the taxable gain and MEC Tax on the surrender of legacy BOLI assets.

    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED SELECTED FINANCIAL HIGHLIGHTS
    (Dollars in thousands except per share amounts)
     
        At or For the Three Months Ended  
        March 31,   December 31,   March 31,  
        2025   2024     2024  
    Per Share Data:                    
    Reported EPS (Diluted)   $ 0.45   $ (0.54 )   $ 0.41  
    Cash dividends paid per common share     0.25     0.25       0.25  
    Book value per common share     29.58     29.34       28.84  
    Tangible common book value per share(1)     25.94     25.68       24.72  
    Common shares outstanding     43,799     43,622       38,932  
    Dividend payout ratio     55.56 %   (46.30 ) %   60.98 %
                         
    Performance Ratios (Based upon Reported Net Income):                    
    Return on average assets     0.62 %   (0.59 ) %   0.51 %
    Return on average equity     6.04     (6.02 )     5.68  
    Return on average tangible common equity(1)     6.92     (8.16 )     6.64  
    Net interest margin     2.95     2.79       2.21  
    Non-interest expense to average assets     1.90     1.76       1.52  
    Efficiency ratio     63.1     105.9       64.0  
    Effective tax rate     25.26     (19.44 )     27.13  
                         
    Balance Sheet Data:                    
    Average assets   $ 13,777,665   $ 13,759,002     $ 13,794,924  
    Average interest-earning assets     12,963,320     12,974,958       13,015,755  
    Average tangible common equity(1)     1,145,915     1,080,177       968,719  
    Loan-to-deposit ratio at end of period(2)     93.6     93.0       98.8  
                         
    Capital Ratios and Reserves – Consolidated:(3)                    
    Tangible common equity to tangible assets(1)     8.15 %   7.89   %   7.21 %
    Tangible equity to tangible assets(1)     8.99     8.71       8.09  
    Tier 1 common equity ratio     11.12     11.06       10.00  
    Tier 1 risk-based capital ratio     12.23     12.17       11.11  
    Total risk-based capital ratio     15.71     15.65       13.78  
    Tier 1 leverage ratio     9.46     9.38       8.48  
    Consolidated CRE concentration ratio(4)     442     447       534  
    Allowance for credit losses/ Total loans     0.83     0.82       0.71  
    Allowance for credit losses/ Non-performing loans     155.85     179.37       218.42  

    (1) See “Non-GAAP Reconciliation” tables for reconciliation of tangible equity, tangible common equity, and tangible assets.
    (2) Total deposits include mortgage escrow deposits, which fluctuate seasonally.
    (3) March 31, 2025 ratios are preliminary pending completion and filing of the Company’s regulatory reports. 
    (4) The Consolidated CRE concentration ratio is calculated using the sum of commercial real estate, excluding owner-occupied commercial real estate, multifamily, and acquisition, development, and construction, divided by consolidated capital. The March 31, 2025 ratio is preliminary pending completion and filing of the Company’s regulatory reports.

    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED AVERAGE BALANCES AND NET INTEREST INCOME
    (Dollars in thousands)    		  
       
        Three Months Ended  
        March 31, 2025   December 31, 2024   March 31, 2024  
                    Average               Average               Average  
        Average         Yield/   Average         Yield/   Average         Yield/  
        Balance   Interest   Cost   Balance   Interest   Cost   Balance   Interest   Cost  
    Assets:                                                  
    Interest-earning assets:                                                  
    Business loans(1)   $ 2,748,142   $ 45,047   6.65 % $ 2,681,953   $ 46,791   6.94 % $ 2,308,319   $ 39,224   6.83 %
    One-to-four family residential, including condo and coop     962,046     11,069   4.67     943,319     11,061   4.66     886,588     9,770   4.43  
    Multifamily residential and residential mixed-use     3,796,754     42,329   4.52     3,848,579     44,152   4.56     4,000,510     46,019   4.63  
    Non-owner-occupied commercial real estate     3,214,758     41,326   5.21     3,265,906     42,865   5.22     3,371,438     44,776   5.34  
    Acquisition, development, and construction     138,428     2,906   8.51     139,440     3,101   8.85     169,775     3,692   8.75  
    Other loans     5,740     28   1.98     4,781     30   2.50     5,420     84   6.23  
    Securities     1,372,563     11,323   3.35     1,455,449     10,010   2.74     1,578,330     7,880   2.01  
    Other short-term investments     724,889     7,837   4.38     635,531     7,473   4.68     695,375     9,564   5.53  
    Total interest-earning assets     12,963,320     161,865   5.06 %   12,974,958     165,483   5.07 %   13,015,755     161,009   4.98 %
    Non-interest-earning assets     814,345               784,044               779,169            
    Total assets   $ 13,777,665             $ 13,759,002             $ 13,794,924            
                                                       
    Liabilities and Stockholders’ Equity:                                                  
    Interest-bearing liabilities:                                                  
    Interest-bearing checking(2)   $ 912,852   $ 4,164   1.85 % $ 912,645   $ 5,115   2.23 % $ 582,047   $ 1,223   0.85 %
    Money market     4,076,612     31,294   3.11     3,968,793     33,695   3.38     3,359,884     30,638   3.67  
    Savings(2)     1,970,338     14,185   2.92     1,905,866     14,828   3.10     2,368,946     22,810   3.87  
    Certificates of deposit     973,108     8,431   3.51     1,126,859     11,135   3.93     1,655,882     18,398   4.47  
    Total interest-bearing deposits     7,932,910     58,074   2.97     7,914,163     64,773   3.26     7,966,759     73,069   3.69  
    FHLBNY advances     509,111     4,066   3.24     509,630     4,241   3.31     1,094,209     12,143   4.46  
    Subordinated debt, net     272,341     4,302   6.41     272,311     4,301   6.28     200,188     2,553   5.13  
    Other short-term borrowings     633     13   8.33     543     —   —     77     1   5.22  
    Total borrowings     782,085     8,381   4.35     782,484     8,542   4.34     1,294,474     14,697   4.57  
    Derivative cash collateral     104,126     1,197   4.66     99,560     1,070   4.28     130,166     1,713   5.29  
    Total interest-bearing liabilities     8,819,121     67,652   3.11 %   8,796,207     74,385   3.36 %   9,391,399     89,479   3.83 %
    Non-interest-bearing checking(2)     3,322,583               3,396,457               2,909,776            
    Other non-interest-bearing liabilities     213,876               209,712               247,717            
    Total liabilities     12,355,580               12,402,376               12,548,892            
    Stockholders’ equity     1,422,085               1,356,626               1,246,032            
    Total liabilities and stockholders’ equity   $ 13,777,665             $ 13,759,002             $ 13,794,924            
    Net interest income         $ 94,213             $ 91,098             $ 71,530      
    Net interest rate spread               1.95 %             1.71 %             1.15 %
    Net interest margin               2.95 %             2.79 %             2.21 %
    Deposits (including non-interest-bearing checking accounts)(2)   $ 11,255,493   $ 58,074   2.09 % $ 11,310,620   $ 64,773   2.28 % $ 10,876,535   $ 73,069   2.70 %

    (1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.
    (2) Includes mortgage escrow deposits.

    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    UNAUDITED SCHEDULE OF NON-PERFORMING ASSETS
    (Dollars in thousands)
     
        At or For the Three Months Ended
        March 31,   December 31,   March 31,
    Asset Quality Detail   2025     2024     2024  
    Non-performing loans (“NPLs”)                  
    Business loans(1)   $ 21,944     $ 22,624     $ 18,213  
    One-to-four family residential, including condominium and cooperative apartment     3,763       3,213       3,689  
    Multifamily residential and residential mixed-use     —       —       —  
    Non-owner-occupied commercial real estate     31,677       22,960       15  
    Acquisition, development, and construction     657       657       12,910  
    Other loans     —       25       —  
    Total Non-accrual loans   $ 58,041     $ 49,479     $ 34,827  
    Total Non-performing assets (“NPAs”)   $ 58,041     $ 49,479     $ 34,827  
                       
    Total loans 90 days delinquent and accruing (“90+ Delinquent”)   $ —     $ —     $ —  
                       
    NPAs and 90+ Delinquent   $ 58,041     $ 49,479     $ 34,827  
                       
    NPAs and 90+ Delinquent / Total assets     0.41 %     0.34 %     0.26 %
    Net charge-offs (“NCOs”)   $ 7,058     $ 10,611     $ 739  
    NCOs / Average loans(2)     0.26 %     0.39 %     0.03 %

    (1) Business loans include commercial and industrial loans, owner-occupied commercial real estate loans and PPP loans.
    (2) Calculated based on annualized NCOs to average loans, excluding loans held for sale.

    DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES
    NON-GAAP RECONCILIATION
    (Dollars in thousands except per share amounts)

    The following tables below provide a reconciliation of certain financial measures calculated under generally accepted accounting principles (“GAAP”) (as reported) and non-GAAP measures. A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with GAAP in the United States. The Company’s management believes the presentation of non-GAAP financial measures provides investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with GAAP. While management uses these non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with GAAP or considered to be more important than financial results determined in accordance with GAAP.

    The following non-GAAP financial measures exclude pre-tax income and expenses associated with the fair value change in equity securities and loans held for sale, net loss (gain) on sale of securities and other assets, severance, the FDIC special assessment, loss on extinguishment of debt and loss due to pension settlement. The non-GAAP financial measures also include taxes related to the surrender of BOLI assets.  

                         
        Three Months Ended  
        March 31,   December 31,   March 31,     
        2025     2024     2024    
    Reconciliation of Reported and Adjusted (non-GAAP) Net Income (Loss) Available to Common Stockholders                    
    Reported net income (loss) available to common stockholders   $ 19,636     $ (22,234 )   $ 15,870    
    Adjustments to net income(1):                    
    Fair value change in equity securities and loans held for sale     (18 )     (15 )     842    
    Net loss (gain) on sale of securities and other assets     —       42,256       (2,968 )  
    Severance     76       1,254       42    
    FDIC special assessment     —       126       —    
    Loss on extinguishment of debt     —       —       453    
    Loss due to pension settlement     7,231       1,215       —    
    Income tax effect of adjustments noted above(1)     (2,237 )     (14,258 )     518    
    BOLI tax adjustment(2):     —       9,073       —    
    Adjusted net income available to common stockholders (non-GAAP)   $ 24,688     $ 17,417     $ 14,757    
                         
    Adjusted Ratios (Based upon Adjusted (non-GAAP) Net (Loss) Income as calculated above)                    
    Adjusted EPS (Diluted)   $ 0.57     $ 0.42     $ 0.38    
    Adjusted return on average assets     0.77   %   0.56   %   0.48   %
    Adjusted return on average equity     7.46       5.67       5.32    
    Adjusted return on average tangible common equity     8.68       6.52       6.18    
    Adjusted non-interest expense to average assets     1.68       1.68       1.50    
    Adjusted efficiency ratio     55.8       58.0       64.7    

    (1) Adjustments to net (loss) income are taxed at the Company’s approximate statutory tax rate.
    (2) Reflects income tax expense related to the taxable gain and MEC Tax on the surrender of legacy BOLI assets during the three months ended December 31, 2024.

    The following table presents a reconciliation of operating expense as a percentage of average assets (as reported) and adjusted operating expense as a percentage of average assets (non-GAAP):

                         
        Three Months Ended    
           March 31,      December 31,      March 31,     
        2025       2024       2024      
    Operating expense as a % of average assets – as reported   1.90   %     1.76   %     1.52   %    
    Severance   —       (0.04 )     —      
    FDIC special assessment   —       —       —      
    Loss on extinguishment of debt   —       —       (0.01 )    
    Loss due to pension settlement   (0.21 )     (0.04 )     —      
    Amortization of other intangible assets   (0.01 )     —       (0.01 )    
    Adjusted operating expense as a % of average assets (non-GAAP)   1.68   %     1.68   %     1.50   %    

    The following table presents a reconciliation of efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP):

                         
        Three Months Ended  
           March 31,       December 31,       March 31,      
        2025     2024     2024    
    Efficiency ratio – as reported (non-GAAP) (1)        63.1   %     105.9   %     64.0   %  
    Non-interest expense – as reported   $ 65,511     $ 60,613     $ 52,511    
    Severance     (76 )     (1,254 )     (42 )  
    FDIC special assessment     —       (126 )     —    
    Loss on extinguishment of debt     —       —       (453 )  
    Loss due to pension settlement     (7,231 )     (1,215 )     —    
    Amortization of other intangible assets     (252 )     (285 )     (307 )  
    Adjusted non-interest expense (non-GAAP)   $ 57,952     $ 57,733     $ 51,709    
    Net interest income – as reported   $ 94,213     $ 91,098     $ 71,530    
    Non-interest income (loss) – as reported   $ 9,633     $ (33,861 )   $ 10,467    
    Fair value change in equity securities and loans held for sale     (18 )     (15 )     842    
    Net loss (gain) on sale of securities and other assets     —       42,256       (2,968 )  
    Adjusted non-interest income (non-GAAP)   $ 9,615     $ 8,380     $ 8,341    
    Adjusted total revenues for adjusted efficiency ratio (non-GAAP)   $ 103,828     $ 99,478     $ 79,871    
    Adjusted efficiency ratio (non-GAAP) (2)     55.8   %     58.0   %     64.7   %  

    (1)   The reported efficiency ratio is a non-GAAP measure calculated by dividing GAAP non-interest expense by the sum of GAAP net interest income and GAAP non-interest income.
    (2)   The adjusted efficiency ratio is a non-GAAP measure calculated by dividing adjusted non-interest expense by the sum of GAAP net interest income and adjusted non-interest income.

    The following table presents the tangible common equity to tangible assets, tangible equity to tangible assets, and tangible common book value per share calculations (non-GAAP):

                         
        March 31,   December 31,   March 31,  
        2025     2024     2024    
    Reconciliation of Tangible Assets:                    
    Total assets   $ 14,097,682     $ 14,353,258     $ 13,501,092    
    Goodwill     (155,797 )     (155,797 )     (155,797 )  
    Other intangible assets     (3,644 )     (3,896 )     (4,753 )  
    Tangible assets (non-GAAP)   $ 13,938,241     $ 14,193,565     $ 13,340,542    
                         
    Reconciliation of Tangible Common Equity – Consolidated:                    
    Total stockholders’ equity   $ 1,412,013     $ 1,396,517     $ 1,239,371    
    Goodwill     (155,797 )     (155,797 )     (155,797 )  
    Other intangible assets     (3,644 )     (3,896 )     (4,753 )  
    Tangible equity (non-GAAP)     1,252,572       1,236,824       1,078,821    
    Preferred stock, net     (116,569 )     (116,569 )     (116,569 )  
    Tangible common equity (non-GAAP)   $ 1,136,003     $ 1,120,255     $ 962,252    
                         
    Common shares outstanding     43,799       43,622       38,932    
                         
    Tangible common equity to tangible assets (non-GAAP)     8.15   %   7.89   %   7.21   %
    Tangible equity to tangible assets (non-GAAP)     8.99       8.71       8.09    
                         
    Book value per common share   $ 29.58     $ 29.34     $ 28.84    
    Tangible common book value per share (non-GAAP)     25.94       25.68       24.72    

    The MIL Network –

  • MIL-OSI: Old National Bancorp Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    EVANSVILLE, Ind., April 22, 2025 (GLOBE NEWSWIRE) —

    Old National Bancorp (NASDAQ: ONB) reports 1Q25 net income applicable to common shares of $140.6 million, diluted EPS of $0.44; $145.5 million and $0.45 on an adjusted1basis, respectively.

    CEO COMMENTARY:

    “Old National reported better-than-expected first-quarter results driven by our peer-leading deposit franchise, solid loan growth and disciplined expense management,” said Chairman and CEO Jim Ryan. “These results demonstrate our ability to navigate a challenging and uncertain economic environment, setting us up favorably as we move into the second quarter and, importantly, as we prepare for our partnership with Bremer Bank which we anticipate closing on May 1, 2025.”


    FIRST     QUARTER HIGHLIGHTS2:

    Net Income
    • Net income applicable to common shares of $140.6 million; adjusted net income applicable to common shares1 of $145.5 million
    • Earnings per diluted common share (“EPS”) of $0.44; adjusted EPS1 of $0.45
       
    Net Interest
    Income/NIM
    • Net interest income on a fully taxable equivalent basis1 of $393.0 million
    • Net interest margin on a fully taxable equivalent basis1 (“NIM”) of 3.27%, down 3 basis points (“bps”)
       
    Operating
    Performance
    • Pre-provision net revenue1 (“PPNR”) of $218.3 million; adjusted PPNR1 of $224.3 million
    • Noninterest expense of $268.5 million; adjusted noninterest expense1 of $262.6 million
    • Efficiency ratio1 of 53.7%; adjusted efficiency ratio1 of 51.8%
       
    Deposits and
    Funding
    • Period-end total deposits of $41.0 billion, up 2.1% annualized; core deposits up 1.7% annualized
    • Granular low-cost deposit franchise; total deposit costs of 191 bps, down 17 bps
       
    Loans and
    Credit
    Quality
    • End-of-period total loans3 of $36.5 billion, up 1.5% annualized
    • Provision for credit losses4 (“provision”) of $31.4 million
    • Net charge-offs of $21.6 million, or 24 bps of average loans; 21 bps excluding purchased credit deteriorated (“PCD”) loans that had an allowance at acquisition
    • 30+ day delinquencies of 0.22% and nonaccrual loans of 1.29% of total loans
     
    Return
    Profile &
    Capital
    • Return on average tangible common equity1 (“ROATCE”) of 15.0%; adjusted ROATCE1 of 15.5%
    • Preliminary regulatory Tier 1 common equity to risk-weighted assets of 11.62%, up 24 bps
       
    Notable
    Items
    • $5.9 million of pre-tax merger-related charges
       

    1 Non-GAAP financial measure that management believes is useful in evaluating the financial results of the Company – refer to the Non-GAAP reconciliations contained in this release 2 Comparisons are on a linked-quarter basis, unless otherwise noted 3 Includes loans held-for-sale 4 Includes the provision for unfunded commitments

    RESULTS OF OPERATIONS2
    Old National Bancorp (“Old National”) reported first quarter 2025 net income applicable to common shares of $140.6 million, or $0.44 per diluted common share.

    Included in first quarter results were pre-tax charges of $5.9 million for merger-related expenses. Excluding these charges and realized debt securities losses from the current quarter, adjusted net income1 was $145.5 million, or $0.45 per diluted common share.

    DEPOSITS AND FUNDING
    Growth in core deposits driven by normal seasonal patterns in business checking and public funds, along with growth in community deposits.

    • Period-end total deposits were $41.0 billion, up 2.1% annualized; core deposits up 1.7% annualized.
    • On average, total deposits for the first quarter were $40.5 billion, down 6.2% annualized.
    • Granular low-cost deposit franchise; total deposit costs of 191 bps, down 17 bps.
    • A loan to deposit ratio of 89%, combined with existing funding sources, provides strong liquidity.

    LOANS
    Balanced commercial loan production, growth and pipeline.

    • Period-end total loans3 were $36.5 billion, up 1.5% annualized; up 2.3% annualized excluding $71 million of commercial real estate loan sales.
    • Total commercial loan production in the first quarter was $1.5 billion; period-end commercial pipeline totaled $3.4 billion.
    • Average total loans in the first quarter were $36.3 billion, a decrease of $128.2 million, or down 1.4% annualized.

    CREDIT QUALITY
    Resilient credit quality continues to be a hallmark of Old National.

    • Provision4 expense was $31.4 million compared to $27.0 million.
    • Net charge-offs were $21.6 million, or 24 bps of average loans compared to 21 bps.
      • Excluding PCD loans that had an allowance for credit losses established at acquisition, net charge-offs to average loans were 21 bps compared to 17 bps.
    • 30+ day delinquencies as a percentage of loans were 0.22% compared to 0.27%.
    • Nonaccrual loans as a percentage of total loans were 1.29% compared to 1.23%.
    • Loans acquired from previous acquisitions were recorded at fair value at the acquisition date. The remaining discount on these acquired loans was $119.2 million.
    • The allowance for credit losses, including the allowance for credit losses on unfunded commitments, stood at $424.0 million, or 1.16% of total loans, compared to $414.2 million, or 1.14% of total loans.

    NET INTEREST INCOME AND MARGIN
    Lower reflective of lower accretion and number of days.

    • Net interest income on a fully taxable equivalent basis1 decreased to $393.0 million compared to $400.0 million, driven by lower accretion, fewer days in the quarter and earning asset mix, partly offset by lower funding costs.
    • Net interest margin on a fully taxable equivalent basis1 decreased 3 bps to 3.27%.
    • Accretion income on loans and borrowings was $12.3 million, or 10 bps of net interest margin1, compared to $18.5 million, or 15 bps of net interest margin1.
    • Cost of total deposits was 1.91%, decreasing 17 bps and the cost of total interest-bearing deposits decreased 25 bps to 2.46%.

    NONINTEREST INCOME
    Impacted by seasonally lower bank fees and lower company-owned life insurance.

    • Total noninterest income was $93.8 million compared to $95.8 million.
    • Noninterest income decreased 2.1% driven by seasonally lower bank fees and lower company-owned life insurance.
      • Other income was impacted by $4.8 million of gains on the sale of $71 million of commercial real estate loans in the first quarter of 2025 and $8 million of equity investments recoveries in the fourth quarter of 2024.

    NONINTEREST EXPENSE
    Disciplined expense management.

    • Noninterest expense was $268.5 million and included $5.9 million of merger-related charges.
      • Excluding merger-related charges, adjusted noninterest expense1 was $262.6 million, compared to $268.7 million; decrease driven by lower FDIC assessment expense and tax credit amortization.
    • The efficiency ratio1 was 53.7%, while the adjusted efficiency ratio1 was 51.8% compared to 54.4% and 51.8%, respectively.

    INCOME TAXES

    • Income tax expense was $36.9 million, resulting in an effective tax rate of 20.3% compared to 17.3%. On an adjusted fully taxable equivalent (“FTE”) basis, the effective tax rate was 22.6% compared to 19.8%.
      • The effective tax rate for the first quarter of 2025 was impacted by $1.2 million for the vesting of employee stock compensation and the fourth quarter of 2024 was impacted by $5.9 million for the resolution of tax matters.
    • Income tax expense included $5.3 million of tax credit benefit compared to $5.2 million.

    CAPITAL
    Capital ratios remain strong.

    • Preliminary total risk-based capital up 31 bps to 13.68% and preliminary regulatory Tier 1 capital up 25 bps to 12.23%, as strong retained earnings drive capital.
    • Tangible common equity to tangible assets was 7.76%, up 4.7%.

    CONFERENCE CALL AND WEBCAST
    Old National will host a conference call and live webcast at 9:00 a.m. Central Time on Tuesday, April 22, 2025, to review first quarter financial results. The live audio webcast link and corresponding presentation slides will be available on the Company’s Investor Relations website at oldnational.com and will be archived there for 12 months. To listen to the live conference call, dial U.S. (800) 715-9871 or International (646) 307-1963, access code 5176690. A replay of the call will also be available from approximately noon Central Time on April 22, 2025 through May 6, 2025. To access the replay, dial U.S. (800) 770-2030 or International (647) 362-9199; Access code 5176690.

    ABOUT OLD NATIONAL
    Old National Bancorp (NASDAQ: ONB) is the holding company of Old National Bank. As the sixth largest commercial bank headquartered in the Midwest, Old National proudly serves clients primarily in the Midwest and Southeast. With approximately $54 billion of assets and $29 billion of assets under management, Old National ranks among the top 30 banking companies headquartered in the United States. Tracing our roots to 1834, Old National focuses on building long-term, highly valued partnerships with clients while also strengthening and supporting the communities we serve. In addition to providing extensive services in consumer and commercial banking, Old National offers comprehensive wealth management and capital markets services. For more information and financial data, please visit Investor Relations at oldnational.com. In 2024, Points of Light named Old National one of “The Civic 50” – an honor reserved for the 50 most community-minded companies in the United States.

    USE OF NON-GAAP FINANCIAL MEASURES
    The Company’s accounting and reporting policies conform to U.S. generally accepted accounting principles (“GAAP”) and general practices within the banking industry. As a supplement to GAAP, the Company provides non-GAAP performance results, which the Company believes are useful because they assist investors in assessing the Company’s operating performance. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in the tables at the end of this release.

    The Company presents EPS, the efficiency ratio, return on average common equity, return on average tangible common equity, and net income applicable to common shares, all adjusted for certain notable items. These items include merger-related charges associated with completed and pending acquisitions, debt securities gains/losses, separation expense, CECL Day 1 non-PCD provision expense, distribution of excess pension assets expense, and FDIC special assessment expense. Management believes excluding these items from EPS, the efficiency ratio, return on average common equity, and return on average tangible common equity may be useful in assessing the Company’s underlying operational performance since these items do not pertain to its core business operations and their exclusion may facilitate better comparability between periods. Management believes that excluding merger-related charges from these metrics may be useful to the Company, as well as analysts and investors, since these expenses can vary significantly based on the size, type, and structure of each acquisition. Additionally, management believes excluding these items from these metrics may enhance comparability for peer comparison purposes.

    Income tax expense, provision for credit losses, and the certain notable items listed above are excluded from the calculation of pre-provision net revenues, adjusted due to the fluctuation in income before income tax and the level of provision for credit losses required. Management believes adjusted pre-provision net revenues may be useful in assessing the Company’s underlying operating performance and their exclusion may facilitate better comparability between periods and for peer comparison purposes.

    The Company presents adjusted noninterest expense, which excludes merger-related charges associated with completed and pending acquisitions, separation expense, distribution of excess pension assets expense, and FDIC special assessment expense, as well as adjusted noninterest income, which excludes debt securities gains/losses. Management believes that excluding these items from noninterest expense and noninterest income may be useful in assessing the Company’s underlying operational performance as these items either do not pertain to its core business operations or their exclusion may facilitate better comparability between periods and for peer comparison purposes.

    The tax-equivalent adjustment to net interest income and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%. Management believes that it is standard practice in the banking industry to present net interest income and net interest margin on a fully tax-equivalent basis and that it may enhance comparability for peer comparison purposes.

    In management’s view, tangible common equity measures are capital adequacy metrics that may be meaningful to the Company, as well as analysts and investors, in assessing the Company’s use of equity and in facilitating comparisons with peers. These non-GAAP measures are valuable indicators of a financial institution’s capital strength since they eliminate intangible assets from stockholders’ equity and retain the effect of accumulated other comprehensive loss in stockholders’ equity.

    Although intended to enhance investors’ understanding of the Company’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP. In addition, these non-GAAP financial measures may differ from those used by other financial institutions to assess their business and performance. See the following reconciliations in the “Non-GAAP Reconciliations” section for details on the calculation of these measures to the extent presented herein.

    FORWARD-LOOKING STATEMENTS
    This communication contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”), notwithstanding that such statements are not specifically identified as such. In addition, certain statements may be contained in our future filings with the Securities and Exchange Commission (“SEC”), in press releases, and in oral and written statements made by us that are not statements of historical fact and constitute forward‐looking statements within the meaning of the Act. These statements include, but are not limited to, descriptions of Old National’s financial condition, results of operations, asset and credit quality trends, profitability and business plans or opportunities. Forward-looking statements can be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “guidance,” “intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “should,” “would,” and “will,” and other words of similar meaning. These forward-looking statements express management’s current expectations or forecasts of future events and, by their nature, are subject to risks and uncertainties. There are a number of factors that could cause actual results or outcomes to differ materially from those in such statements, including, but not limited to: competition; government legislation, regulations and policies, including trade and tariff policies; the ability of Old National to execute its business plan; unanticipated changes in our liquidity position, including but not limited to changes in our access to sources of liquidity and capital to address our liquidity needs; changes in economic conditions and economic and business uncertainty which could materially impact credit quality trends and the ability to generate loans and gather deposits; inflation and governmental responses to inflation, including increasing interest rates; market, economic, operational, liquidity, credit, and interest rate risks associated with our business; our ability to successfully manage our credit risk and the sufficiency of our allowance for credit losses; the possibility that the merger (the “Merger”) between Old National and Bremer Financial Corporation (“Bremer”) does not close when expected; the expected cost savings, synergies and other financial benefits from the Merger not being realized within the expected time frames and costs or difficulties relating to integration matters being greater than expected; potential adverse reactions or changes to business or employee relationships, including those resulting from the completion of the Merger; the impact of purchase accounting with respect to the Merger, or any change in the assumptions used regarding the assets acquired and liabilities assumed to determine their fair value and credit marks; risks relating to the potential dilutive effect of shares of Old National’s common stock to be issued in the Merger; the potential impact of future business combinations on our performance and financial condition, including our ability to successfully integrate the businesses, the success of revenue-generating and cost reduction initiatives and the diversion of management’s attention from ongoing business operations and opportunities; failure or circumvention of our internal controls; operational risks or risk management failures by us or critical third parties, including without limitation with respect to data processing, information systems, cybersecurity, technological changes, vendor issues, business interruption, and fraud risks; significant changes in accounting, tax or regulatory practices or requirements; new legal obligations or liabilities; disruptive technologies in payment systems and other services traditionally provided by banks; failure or disruption of our information systems; computer hacking and other cybersecurity threats; the effects of climate change on Old National and its customers, borrowers, or service providers; the impacts of pandemics, epidemics and other infectious disease outbreaks; other matters discussed in this communication; and other factors identified in our Annual Report on Form 10-K for the year ended December 31, 2024 and other filings with the SEC. These forward-looking statements are made only as of the date of this communication and are not guarantees of future results, performance or outcomes, and Old National does not undertake an obligation to update these forward-looking statements to reflect events or conditions after the date of this communication.

    CONTACTS:    
    Media: Rick Vach   Investors: Lynell Durchholz
    (904) 535-9489   (812) 464-1366
    Rick.Vach@oldnational.com   Lynell.Durchholz@oldnational.com
             
    Financial Highlights (unaudited)
    ($ and shares in thousands, except per share data)
               
      Three Months Ended
      March 31, December 31, September 30, June 30, March 31,
        2025     2024     2024     2024     2024  
    Income Statement          
    Net interest income $ 387,643   $ 394,180   $ 391,724   $ 388,421   $ 356,458  
    FTE adjustment1,3   5,360     5,777     6,144     6,340     6,253  
    Net interest income – tax equivalent basis3   393,003     399,957     397,868     394,761     362,711  
    Provision for credit losses   31,403     27,017     28,497     36,214     18,891  
    Noninterest income   93,794     95,766     94,138     87,271     77,522  
    Noninterest expense   268,471     276,824     272,283     282,999     262,317  
    Net income available to common shareholders $ 140,625   $ 149,839   $ 139,768   $ 117,196   $ 116,250  
    Per Common Share Data          
    Weighted average diluted shares   321,016     318,803     317,331     316,461     292,207  
    EPS, diluted $ 0.44   $ 0.47   $ 0.44   $ 0.37   $ 0.40  
    Cash dividends   0.14     0.14     0.14     0.14     0.14  
    Dividend payout ratio2   32 %   30 %   32 %   38 %   35 %
    Book value $ 19.71   $ 19.11   $ 19.20   $ 18.28   $ 18.24  
    Stock price   21.19     21.71     18.66     17.19     17.41  
    Tangible book value3   12.54     11.91     11.97     11.05     11.10  
    Performance Ratios          
    ROAA   1.08 %   1.14 %   1.08 %   0.92 %   0.98 %
    ROAE   9.1 %   9.8 %   9.4 %   8.2 %   8.7 %
    ROATCE3   15.0 %   16.4 %   16.0 %   14.1 %   14.9 %
    NIM (FTE)3   3.27 %   3.30 %   3.32 %   3.33 %   3.28 %
    Efficiency ratio3   53.7 %   54.4 %   53.8 %   57.2 %   58.3 %
    NCOs to average loans   0.24 %   0.21 %   0.19 %   0.16 %   0.14 %
    ACL on loans to EOP loans   1.10 %   1.08 %   1.05 %   1.01 %   0.95 %
    ACL4 to EOP loans   1.16 %   1.14 %   1.12 %   1.08 %   1.03 %
    NPLs to EOP loans   1.29 %   1.23 %   1.22 %   0.94 %   0.98 %
    Balance Sheet (EOP)          
    Total loans $ 36,413,944   $ 36,285,887   $ 36,400,643   $ 36,150,513   $ 33,623,319  
    Total assets   53,877,944     53,552,272     53,602,293     53,119,645     49,534,918  
    Total deposits   41,034,572     40,823,560     40,845,746     39,999,228     37,699,418  
    Total borrowed funds   5,447,054     5,411,537     5,449,096     6,085,204     5,331,161  
    Total shareholders’ equity   6,534,654     6,340,350     6,367,298     6,075,072     5,595,408  
    Capital Ratios3          
    Risk-based capital ratios (EOP):          
    Tier 1 common equity   11.62 %   11.38 %   11.00 %   10.73 %   10.76 %
    Tier 1 capital   12.23 %   11.98 %   11.60 %   11.33 %   11.40 %
    Total capital   13.68 %   13.37 %   12.94 %   12.71 %   12.74 %
    Leverage ratio (average assets)   9.44 %   9.21 %   9.05 %   8.90 %   8.96 %
    Equity to assets (averages)   12.01 %   11.78 %   11.60 %   11.31 %   11.32 %
    TCE to TA   7.76 %   7.41 %   7.44 %   6.94 %   6.86 %
    Nonfinancial Data          
    Full-time equivalent employees   4,028     4,066     4,105     4,267     3,955  
    Banking centers   280     280     280     280     258  
    1 Calculated using the federal statutory tax rate in effect of 21% for all periods.    
    2 Cash dividends per common share divided by net income per common share (basic).    
    3 Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.
        March 31, 2025 capital ratios are preliminary.
    4 Includes the allowance for credit losses on loans and unfunded loan commitments.    
               
    FTE – Fully taxable equivalent basis ROAA – Return on average assets ROAE – Return on average equity ROATCE – Return on average tangible common equity NCOs – Net Charge-offs ACL – Allowance for Credit Losses EOP – End of period actual balances NPLs – Non-performing Loans TCE – Tangible common equity TA – Tangible assets
               
    Income Statement (unaudited)
    ($ and shares in thousands, except per share data)
      Three Months Ended
      March 31, December 31, September 30, June 30, March 31,
        2025     2024     2024     2024     2024  
    Interest income $ 630,399   $ 662,082   $ 679,925   $ 663,663   $ 595,981  
    Less: interest expense   242,756     267,902     288,201     275,242     239,523  
    Net interest income   387,643     394,180     391,724     388,421     356,458  
    Provision for credit losses   31,403     27,017     28,497     36,214     18,891  
    Net interest income
    after provision for credit losses    		   356,240     367,163     363,227     352,207     337,567  
    Wealth and investment services fees   29,648     30,012     29,117     29,358     28,304  
    Service charges on deposit accounts   21,156     20,577     20,350     19,350     17,898  
    Debit card and ATM fees   9,991     10,991     11,362     10,993     10,054  
    Mortgage banking revenue   6,879     7,026     7,669     7,064     4,478  
    Capital markets income   4,506     5,244     7,426     4,729     2,900  
    Company-owned life insurance   5,381     6,499     5,315     5,739     3,434  
    Other income   16,309     15,539     12,975     10,036     10,470  
    Debt securities gains (losses), net   (76 )   (122 )   (76 )   2     (16 )
    Total noninterest income   93,794     95,766     94,138     87,271     77,522  
    Salaries and employee benefits   148,305     146,605     147,494     159,193     149,803  
    Occupancy   29,053     29,733     27,130     26,547     27,019  
    Equipment   8,901     9,325     9,888     8,704     8,671  
    Marketing   11,940     12,653     11,036     11,284     10,634  
    Technology   22,020     21,429     23,343     24,002     20,023  
    Communication   4,134     4,176     4,681     4,480     4,000  
    Professional fees   7,919     11,055     7,278     10,552     6,406  
    FDIC assessment   9,700     11,970     11,722     9,676     11,313  
    Amortization of intangibles   6,830     7,237     7,411     7,425     5,455  
    Amortization of tax credit investments   3,424     4,556     3,277     2,747     2,749  
    Other expense   16,245     18,085     19,023     18,389     16,244  
    Total noninterest expense   268,471     276,824     272,283     282,999     262,317  
    Income before income taxes   181,563     186,105     185,082     156,479     152,772  
    Income tax expense   36,904     32,232     41,280     35,250     32,488  
    Net income $ 144,659   $ 153,873   $ 143,802   $ 121,229   $ 120,284  
    Preferred dividends   (4,034 )   (4,034 )   (4,034 )   (4,033 )   (4,034 )
    Net income applicable to common shares $ 140,625   $ 149,839   $ 139,768   $ 117,196   $ 116,250  
               
    EPS, diluted $ 0.44   $ 0.47   $ 0.44   $ 0.37   $ 0.40  
    Weighted Average Common Shares Outstanding          
    Basic   315,925     315,673     315,622     315,585     290,980  
    Diluted   321,016     318,803     317,331     316,461     292,207  
    Common shares outstanding (EOP)   319,236     318,980     318,955     318,969     293,330  
               
               
     
    End of Period Balance Sheet (unaudited)
    ($ in thousands)
      March 31, December 31, September 30, June 30, March 31,
        2025     2024     2024     2024     2024  
    Assets          
    Cash and due from banks $ 486,061   $ 394,450   $ 498,120   $ 428,665   $ 350,990  
    Money market and other interest-earning investments   753,719     833,518     693,450     804,381     588,509  
    Investments:          
    Treasury and government-sponsored agencies   2,364,170     2,289,903     2,335,716     2,207,004     2,243,754  
    Mortgage-backed securities   6,458,023     6,175,103     6,085,826     5,890,371     5,566,881  
    States and political subdivisions   1,589,555     1,637,379     1,665,128     1,678,597     1,672,061  
    Other securities   755,348     781,656     783,079     775,623     760,847  
    Total investments   11,167,096     10,884,041     10,869,749     10,551,595     10,243,543  
    Loans held-for-sale, at fair value   40,424     34,483     62,376     66,126     19,418  
    Loans:          
    Commercial   10,650,615     10,288,560     10,408,095     10,332,631     9,648,269  
    Commercial and agriculture real estate   16,135,327     16,307,486     16,356,216     16,016,958     14,653,958  
    Residential real estate   6,771,694     6,797,586     6,757,896     6,894,957     6,661,379  
    Consumer   2,856,308     2,892,255     2,878,436     2,905,967     2,659,713  
    Total loans   36,413,944     36,285,887     36,400,643     36,150,513     33,623,319  
    Allowance for credit losses on loans   (401,932 )   (392,522 )   (380,840 )   (366,335 )   (319,713 )
    Premises and equipment, net   584,664     588,970     599,528     601,945     564,007  
    Goodwill and other intangible assets   2,289,268     2,296,098     2,305,084     2,306,204     2,095,511  
    Company-owned life insurance   859,211     859,851     863,723     862,032     767,423  
    Accrued interest receivable and other assets   1,685,489     1,767,496     1,690,460     1,714,519     1,601,911  
    Total assets $ 53,877,944   $ 53,552,272   $ 53,602,293   $ 53,119,645   $ 49,534,918  
               
    Liabilities and Equity          
    Noninterest-bearing demand deposits $ 9,186,314   $ 9,399,019   $ 9,429,285   $ 9,336,042   $ 9,257,709  
    Interest-bearing:          
    Checking and NOW accounts   7,736,014     7,538,987     7,314,245     7,680,865     7,236,667  
    Savings accounts   4,715,329     4,753,279     4,781,447     4,983,811     5,020,095  
    Money market accounts   11,638,653     11,807,228     11,601,461     10,485,491     10,234,113  
    Other time deposits   6,212,898     5,819,970     6,010,070     5,688,432     4,760,659  
    Total core deposits   39,489,208     39,318,483     39,136,508     38,174,641     36,509,243  
    Brokered deposits   1,545,364     1,505,077     1,709,238     1,824,587     1,190,175  
    Total deposits   41,034,572     40,823,560     40,845,746     39,999,228     37,699,418  
               
    Federal funds purchased and interbank borrowings   170     385     135,263     250,154     50,416  
    Securities sold under agreements to repurchase   290,256     268,975     244,626     240,713     274,493  
    Federal Home Loan Bank advances   4,514,354     4,452,559     4,471,153     4,744,560     4,193,039  
    Other borrowings   642,274     689,618     598,054     849,777     813,213  
    Total borrowed funds   5,447,054     5,411,537     5,449,096     6,085,204     5,331,161  
    Accrued expenses and other liabilities   861,664     976,825     940,153     960,141     908,931  
    Total liabilities   47,343,290     47,211,922     47,234,995     47,044,573     43,939,510  
    Preferred stock, common stock, surplus, and retained earnings   7,183,163     7,086,393     6,971,054     6,866,480     6,375,036  
    Accumulated other comprehensive income (loss), net of tax   (648,509 )   (746,043 )   (603,756 )   (791,408 )   (779,628 )
    Total shareholders’ equity   6,534,654     6,340,350     6,367,298     6,075,072     5,595,408  
    Total liabilities and shareholders’ equity $ 53,877,944   $ 53,552,272   $ 53,602,293   $ 53,119,645   $ 49,534,918  
     
                             
    Average Balance Sheet and Interest Rates (unaudited)
    ($ in thousands)
                             
                             
        Three Months Ended   Three Months Ended   Three Months Ended
        March 31, 2025   December 31, 2024   March 31, 2024
        Average Income1/ Yield/   Average Income1/ Yield/   Average Income1/ Yield/
    Earning Assets:   Balance Expense Rate   Balance Expense Rate   Balance Expense Rate
    Money market and other interest-earning investments   $ 791,067   $ 8,815 4.52 %   $ 1,072,509   $ 12,843 4.76 %   $ 757,244   $ 9,985 5.30 %
    Investments:                        
    Treasury and government-sponsored agencies     2,318,869     20,019 3.45 %     2,325,120     20,841 3.59 %     2,362,477     23,266 3.94 %
    Mortgage-backed securities     6,287,825     54,523 3.47 %     6,149,775     50,416 3.28 %     5,357,085     38,888 2.90 %
    States and political subdivisions     1,610,819     13,242 3.29 %     1,654,591     13,698 3.31 %     1,680,175     13,976 3.33 %
    Other securities     770,839     10,512 5.45 %     783,708     10,518 5.37 %     770,438     12,173 6.32 %
    Total investments     10,988,352     98,296 3.58 %     10,913,194     95,473 3.50 %     10,170,175     88,303 3.47 %
    Loans:2                        
    Commercial     10,397,991     165,595 6.37 %     10,401,056     176,996 6.81 %     9,540,385     167,263 7.01 %
    Commercial and agriculture real estate     16,213,606     245,935 6.07 %     16,326,802     263,062 6.44 %     14,368,370     230,086 6.41 %
    Residential real estate loans     6,815,091     67,648 3.97 %     6,814,829     68,346 4.01 %     6,693,814     63,003 3.76 %
    Consumer     2,871,213     49,470 6.99 %     2,883,413     51,139 7.06 %     2,645,091     43,594 6.63 %
    Total loans     36,297,901     528,648 5.83 %     36,426,100     559,543 6.14 %     33,247,660     503,946 6.07 %
                             
    Total earning assets   $ 48,077,320   $ 635,759 5.30 %   $ 48,411,803   $ 667,859 5.52 %   $ 44,175,079   $ 602,234 5.46 %
                             
    Less: Allowance for credit losses on loans     (398,765 )         (382,799 )         (313,470 )    
                             
    Non-earning Assets:                        
    Cash and due from banks   $ 372,428         $ 370,932         $ 362,676      
    Other assets     5,394,600           5,402,359           4,961,595      
                             
    Total assets   $ 53,445,583         $ 53,802,295         $ 49,185,880      
                             
    Interest-Bearing Liabilities:                        
    Checking and NOW accounts   $ 7,526,294   $ 23,850 1.29 %   $ 7,338,532   $ 23,747 1.29 %   $ 7,141,201   $ 25,252 1.42 %
    Savings accounts     4,692,239     3,608 0.31 %     4,750,387     4,467 0.37 %     5,025,400     5,017 0.40 %
    Money market accounts     11,664,650     88,381 3.07 %     11,900,305     103,818 3.47 %     9,917,572     94,213 3.82 %
    Other time deposits     5,996,108     56,485 3.82 %     5,985,911     61,679 4.10 %     4,689,136     47,432 4.07 %
    Total interest-bearing core deposits     29,879,291     172,324 2.34 %     29,975,135     193,711 2.57 %     26,773,309     171,914 2.58 %
    Brokered deposits     1,546,756     18,171 4.76 %     1,662,698     21,579 5.16 %     1,047,140     13,525 5.19 %
    Total interest-bearing deposits     31,426,047     190,495 2.46 %     31,637,833     215,290 2.71 %     27,820,449     185,439 2.68 %
                             
    Federal funds purchased and interbank borrowings     148,130     1,625 4.45 %     433     23 21.13 %     69,090     961 5.59 %
    Securities sold under agreements to repurchase     272,961     551 0.82 %     249,133     584 0.93 %     296,236     917 1.25 %
    Federal Home Loan Bank advances     4,464,590     41,896 3.81 %     4,461,733     43,788 3.90 %     4,386,492     41,167 3.77 %
    Other borrowings     675,759     8,189 4.91 %     669,580     8,217 4.88 %     825,846     11,039 5.38 %
    Total borrowed funds     5,561,440     52,261 3.81 %     5,380,879     52,612 3.89 %     5,577,664     54,084 3.90 %
                             
    Total interest-bearing liabilities   $ 36,987,487   $ 242,756 2.66 %   $ 37,018,712   $ 267,902 2.88 %   $ 33,398,113   $ 239,523 2.88 %
                             
    Noninterest-Bearing Liabilities and Shareholders’ Equity                      
    Demand deposits   $ 9,096,676         $ 9,509,446         $ 9,258,136      
    Other liabilities     944,935           935,184           964,089      
    Shareholders’ equity     6,416,485           6,338,953           5,565,542      
                             
    Total liabilities and shareholders’ equity   $ 53,445,583         $ 53,802,295         $ 49,185,880      
                             
    Net interest rate spread       2.64 %       2.64 %       2.58 %
                             
    Net interest margin (GAAP)       3.23 %       3.26 %       3.23 %
                             
    Net interest margin (FTE)3       3.27 %       3.30 %       3.28 %
                             
    FTE adjustment     $ 5,360       $ 5,777       $ 6,253  
                             
    1 Interest income is reflected on a FTE basis.  
    2 Includes loans held-for-sale.  
    3 Represents a non-GAAP financial measure. Refer to the “Non-GAAP Measures” table for reconciliations to GAAP financial measures.  
     
               
    Asset Quality (EOP) (unaudited)
    ($ in thousands)
               
      Three Months Ended
      March 31, December 31, September 30, June 30, March 31,
        2025     2024     2024     2024     2024  
    Allowance for credit losses:          
    Beginning allowance for credit losses on loans $ 392,522   $ 380,840   $ 366,335   $ 319,713   $ 307,610  
    Allowance established for acquired PCD loans   —     —     2,803     23,922     —  
    Provision for credit losses on loans   31,026     30,417     29,176     36,745     23,853  
    Gross charge-offs   (24,540 )   (21,278 )   (18,965 )   (17,041 )   (14,020 )
    Gross recoveries   2,924     2,543     1,491     2,996     2,270  
    NCOs   (21,616 )   (18,735 )   (17,474 )   (14,045 )   (11,750 )
    Ending allowance for credit losses on loans $ 401,932   $ 392,522   $ 380,840   $ 366,335   $ 319,713  
    Beginning allowance for credit losses on unfunded commitments $ 21,654   $ 25,054   $ 25,733   $ 26,264   $ 31,226  
    Provision (release) for credit losses on unfunded commitments   377     (3,400 )   (679 )   (531 )   (4,962 )
    Ending allowance for credit losses on unfunded commitments $ 22,031   $ 21,654   $ 25,054   $ 25,733   $ 26,264  
    Allowance for credit losses $ 423,963   $ 414,176   $ 405,894   $ 392,068   $ 345,977  
    Provision for credit losses on loans $ 31,026   $ 30,417   $ 29,176   $ 36,745   $ 23,853  
    Provision (release) for credit losses on unfunded commitments   377     (3,400 )   (679 )   (531 )   (4,962 )
    Provision for credit losses $ 31,403   $ 27,017   $ 28,497   $ 36,214   $ 18,891  
    NCOs / average loans1   0.24 %   0.21 %   0.19 %   0.16 %   0.14 %
    Average loans1 $ 36,284,059   $ 36,410,414   $ 36,299,544   $ 36,053,845   $ 33,242,739  
    EOP loans1   36,413,944     36,285,887     36,400,643     36,150,513     33,623,319  
    ACL on loans / EOP loans1   1.10 %   1.08 %   1.05 %   1.01 %   0.95 %
    ACL / EOP loans1   1.16 %   1.14 %   1.12 %   1.08 %   1.03 %
    Underperforming Assets:          
    Loans 90 days and over (still accruing) $ 6,757   $ 4,060   $ 1,177   $ 5,251   $ 2,172  
    Nonaccrual loans   469,211     447,979     443,597     340,181     328,645  
    Foreclosed assets   6,301     4,294     4,077     8,290     9,344  
    Total underperforming assets $ 482,269   $ 456,333   $ 448,851   $ 353,722   $ 340,161  
    Classified and Criticized Assets:          
    Nonaccrual loans $ 469,211   $ 447,979   $ 443,597   $ 340,181   $ 328,645  
    Substandard loans (still accruing)   1,479,630     1,073,413     1,074,243     841,087     626,157  
    Loans 90 days and over (still accruing)   6,757     4,060     1,177     5,251     2,172  
    Total classified loans – “problem loans”   1,955,598     1,525,452     1,519,017     1,186,519     956,974  
    Other classified assets   53,239     58,954     59,485     60,772     54,392  
    Special Mention   828,314     908,630     837,543     967,655     827,419  
    Total classified and criticized assets $ 2,837,151   $ 2,493,036   $ 2,416,045   $ 2,214,946   $ 1,838,785  
    Loans 30-89 days past due (still accruing) $ 72,517   $ 93,141   $ 91,750   $ 51,712   $ 53,112  
    Nonaccrual loans / EOP loans1   1.29 %   1.23 %   1.22 %   0.94 %   0.98 %
    ACL / nonaccrual loans   90 %   92 %   92 %   115 %   105 %
    Under-performing assets/EOP loans1   1.32 %   1.26 %   1.23 %   0.98 %   1.01 %
    Under-performing assets/EOP assets   0.90 %   0.85 %   0.84 %   0.67 %   0.69 %
    30+ day delinquencies/EOP loans1   0.22 %   0.27 %   0.26 %   0.16 %   0.16 %
               
    1 Excludes loans held-for-sale.      
               

            

            

               
    Non-GAAP Measures (unaudited)
    ($ and shares in thousands, except per share data)
               
      Three Months Ended
      March 31, December 31, September 30, June 30, March 31,
        2025     2024     2024     2024     2024  
    Earnings Per Share:          
    Net income applicable to common shares $ 140,625   $ 149,839   $ 139,768   $ 117,196   $ 116,250  
    Adjustments:          
    Merger-related charges   5,856     8,117     6,860     19,440     2,908  
    Tax effect1   (1,089 )   (2,058 )   (1,528 )   (4,413 )   (710 )
    Merger-related charges, net   4,767     6,059     5,332     15,027     2,198  
    Debt securities (gains) losses   76     122     76     (2 )   16  
    Tax effect1   (14 )   (31 )   (17 )   1     (4 )
    Debt securities (gains) losses, net   62     91     59     (1 )   12  
    Separation expense   —     —     2,646     —     —  
    Tax effect1   —     —     (589 )   —     —  
    Separation expense, net   —     —     2,057     —     —  
    CECL Day 1 non-PCD provision expense   —     —     —     15,312     —  
    Tax effect1   —     —     —     (3,476 )   —  
    CECL Day 1 non-PCD provision expense, net   —     —     —     11,836     —  
    Distribution of excess pension assets   —     —     —     —     13,318  
    Tax effect1   —     —     —     —     (3,250 )
    Distribution excess pension assets, net   —     —     —     —     10,068  
    FDIC special assessment   —     —     —     —     2,994  
    Tax effect1   —     —     —     —     (731 )
    FDIC special assessment, net   —     —     —     —     2,263  
    Total adjustments, net   4,829     6,150     7,448     26,862     14,541  
    Net income applicable to common shares, adjusted $ 145,454   $ 155,989   $ 147,216   $ 144,058   $ 130,791  
    Weighted average diluted common shares outstanding   321,016     318,803     317,331     316,461     292,207  
    EPS, diluted $ 0.44   $ 0.47   $ 0.44   $ 0.37   $ 0.40  
    Adjusted EPS, diluted $ 0.45   $ 0.49   $ 0.46   $ 0.46   $ 0.45  
    NIM:          
    Net interest income $ 387,643   $ 394,180   $ 391,724   $ 388,421   $ 356,458  
    Add: FTE adjustment2   5,360     5,777     6,144     6,340     6,253  
    Net interest income (FTE) $ 393,003   $ 399,957   $ 397,868   $ 394,761   $ 362,711  
    Average earning assets $ 48,077,320   $ 48,411,803   $ 47,905,463   $ 47,406,849   $ 44,175,079  
    NIM (GAAP)   3.23 %   3.26 %   3.27 %   3.28 %   3.23 %
    NIM (FTE)   3.27 %   3.30 %   3.32 %   3.33 %   3.28 %
               
    Refer to last page of Non-GAAP reconciliations for footnotes.      
               
    Non-GAAP Measures (unaudited)
    ($ in thousands)
               
      Three Months Ended
      March 31, December 31, September 30, June 30, March 31,
        2025     2024     2024     2024     2024  
    PPNR:          
    Net interest income (FTE)2 $ 393,003   $ 399,957   $ 397,868   $ 394,761   $ 362,711  
    Add: Noninterest income   93,794     95,766     94,138     87,271     77,522  
    Total revenue (FTE)   486,797     495,723     492,006     482,032     440,233  
    Less: Noninterest expense   (268,471 )   (276,824 )   (272,283 )   (282,999 )   (262,317 )
    PPNR $ 218,326   $ 218,899   $ 219,723   $ 199,033   $ 177,916  
    Adjustments:          
    Debt securities (gains) losses $ 76   $ 122   $ 76   $ (2 ) $ 16  
    Noninterest income adjustments   76     122     76     (2 )   16  
    Adjusted noninterest income   93,870     95,888     94,214     87,269     77,538  
    Adjusted revenue $ 486,873   $ 495,845   $ 492,082   $ 482,030   $ 440,249  
    Adjustments:          
    Merger-related charges $ 5,856   $ 8,117   $ 6,860   $ 19,440   $ 2,908  
    Separation expense   —     —     2,646     —     —  
    Distribution of excess pension assets   —     —     —     —     13,318  
    FDIC Special Assessment   —     —     —     —     2,994  
    Noninterest expense adjustments   5,856     8,117     9,506     19,440     19,220  
    Adjusted total noninterest expense   (262,615 )   (268,707 )   (262,777 )   (263,559 )   (243,097 )
    Adjusted PPNR $ 224,258   $ 227,138   $ 229,305   $ 218,471   $ 197,152  
    Efficiency Ratio:          
    Noninterest expense $ 268,471   $ 276,824   $ 272,283   $ 282,999   $ 262,317  
    Less: Amortization of intangibles   (6,830 )   (7,237 )   (7,411 )   (7,425 )   (5,455 )
    Noninterest expense, excl. amortization of intangibles   261,641     269,587     264,872     275,574     256,862  
    Less: Amortization of tax credit investments   (3,424 )   (4,556 )   (3,277 )   (2,747 )   (2,749 )
    Less: Noninterest expense adjustments   (5,856 )   (8,117 )   (9,506 )   (19,440 )   (19,220 )
    Adjusted noninterest expense, excluding amortization $ 252,361   $ 256,914   $ 252,089   $ 253,387   $ 234,893  
    Total revenue (FTE)2 $ 486,797   $ 495,723   $ 492,006   $ 482,032   $ 440,233  
    Less: Debt securities (gains) losses   76     122     76     (2 )   16  
    Total adjusted revenue $ 486,873   $ 495,845   $ 492,082   $ 482,030   $ 440,249  
    Efficiency Ratio   53.7 %   54.4 %   53.8 %   57.2 %   58.3 %
    Adjusted Efficiency Ratio   51.8 %   51.8 %   51.2 %   52.6 %   53.4 %
               
    Refer to last page of Non-GAAP reconciliations for footnotes.      
               
    Non-GAAP Measures (unaudited)
    ($ in thousands)
               
      Three Months Ended
      March 31, December 31, September 30, June 30, March 31,
        2025     2024     2024     2024     2024  
    ROAE and ROATCE:          
    Net income applicable to common shares $ 140,625   $ 149,839   $ 139,768   $ 117,196   $ 116,250  
    Amortization of intangibles   6,830     7,237     7,411     7,425     5,455  
    Tax effect1   (1,708 )   (1,809 )   (1,853 )   (1,856 )   (1,364 )
    Amortization of intangibles, net   5,122     5,428     5,558     5,569     4,091  
    Net income applicable to common shares, excluding intangibles amortization   145,747     155,267     145,326     122,765     120,341  
    Total adjustments, net (see pg.12)   4,829     6,150     7,448     26,862     14,541  
    Adjusted net income applicable to common shares, excluding intangibles amortization $ 150,576   $ 161,417   $ 152,774   $ 149,627   $ 134,882  
    Average shareholders’ equity $ 6,416,485   $ 6,338,953   $ 6,190,071   $ 5,978,976   $ 5,565,542  
    Less: Average preferred equity   (243,719 )   (243,719 )   (243,719 )   (243,719 )   (243,719 )
    Average shareholders’ common equity $ 6,172,766   $ 6,095,234   $ 5,946,352   $ 5,735,257   $ 5,321,823  
    Average goodwill and other intangible assets   (2,292,526 )   (2,301,177 )   (2,304,597 )   (2,245,405 )   (2,098,338 )
    Average tangible shareholder’s common equity $ 3,880,240   $ 3,794,057   $ 3,641,755   $ 3,489,852   $ 3,223,485  
    ROAE   9.1 %   9.8 %   9.4 %   8.2 %   8.7 %
    ROAE, adjusted   9.4 %   10.2 %   9.9 %   10.0 %   9.8 %
    ROATCE   15.0 %   16.4 %   16.0 %   14.1 %   14.9 %
    ROATCE, adjusted   15.5 %   17.0 %   16.8 %   17.1 %   16.7 %
               
    Refer to last page of Non-GAAP reconciliations for footnotes.      
               
    Non-GAAP Measures (unaudited)
    ($ in thousands)
               
      As of
      March 31, December 31, September 30, June 30, March 31,
        2025     2024     2024     2024     2024  
    Tangible Common Equity:          
    Shareholders’ equity $ 6,534,654   $ 6,340,350   $ 6,367,298   $ 6,075,072   $ 5,595,408  
    Less: Preferred equity   (243,719 )   (243,719 )   (243,719 )   (243,719 )   (243,719 )
    Shareholders’ common equity $ 6,290,935   $ 6,096,631   $ 6,123,579   $ 5,831,353   $ 5,351,689  
    Less: Goodwill and other intangible assets   (2,289,268 )   (2,296,098 )   (2,305,084 )   (2,306,204 )   (2,095,511 )
    Tangible shareholders’ common equity $ 4,001,667   $ 3,800,533   $ 3,818,495   $ 3,525,149   $ 3,256,178  
               
    Total assets $ 53,877,944   $ 53,552,272   $ 53,602,293   $ 53,119,645   $ 49,534,918  
    Less: Goodwill and other intangible assets   (2,289,268 )   (2,296,098 )   (2,305,084 )   (2,306,204 )   (2,095,511 )
    Tangible assets $ 51,588,676   $ 51,256,174   $ 51,297,209   $ 50,813,441   $ 47,439,407  
               
    Risk-weighted assets3 $ 40,266,670   $ 40,314,805   $ 40,584,608   $ 40,627,117   $ 37,845,139  
               
    Tangible common equity to tangible assets   7.76 %   7.41 %   7.44 %   6.94 %   6.86 %
    Tangible common equity to risk-weighted assets3   9.94 %   9.43 %   9.41 %   8.68 %   8.60 %
    Tangible Common Book Value:          
    Common shares outstanding   319,236     318,980     318,955     318,969     293,330  
    Tangible common book value $ 12.54   $ 11.91   $ 11.97   $ 11.05   $ 11.10  
               
    1 Tax-effect calculations use management’s estimate of the full year FTE tax rates (federal + state).
    2 Calculated using the federal statutory tax rate in effect of 21% for all periods.
    3 March 31, 2025 figures are preliminary.

    The MIL Network –

  • MIL-OSI: Former CIA Director George Tenet Joins Illumio Board of Directors

    Source: GlobeNewswire (MIL-OSI)

    SUNNYVALE, Calif., April 22, 2025 (GLOBE NEWSWIRE) — Illumio, the breach containment company, is proud to announce the appointment of George J. Tenet, former Director of Central Intelligence, to its Board of Directors. With a career spanning national security, intelligence, and investment banking, Tenet’s unparalleled expertise makes him an invaluable addition to Illumio’s leadership team. His expansive knowledge will be instrumental as the company advances its mission to contain breaches before they become cyber disasters.

    “George Tenet embodies leadership in the best and most challenging circumstances,” said Andrew Rubin, CEO and Founder of Illumio. “His deep understanding of cybersecurity, national security, business, and mission-driven teamwork will be instrumental in advancing our vision during this pivotal time for both Illumio and the industry. George has been a mentor, advisor, and supporter of Illumio since our earliest days, and we are honored to have him officially join our Board.”

    Tenet’s career includes leading the Central Intelligence Agency, where he played a fundamental role in reshaping the agency’s intelligence gathering and analysis approach, particularly in response to the rise of global terrorism and cyber threats. Tenet oversaw the expansion and modernization of the CIA’s Counterterrorist Center and coordinated critical operations that enhanced U.S. national security post 9/11. He also spearheaded efforts to modernize intelligence practices, integrating advanced technologies and fostering inter-agency collaboration to address emerging security challenges. He was instrumental in standing up In-Q-Tel, (now known as IQT) an independent, not-for-profit strategic investment firm that assists startups in adapting their products to help government partners and the companies’ commercial success.

    His strategic insights and leadership acumen have been widely recognized, earning him high-profile advisory roles in both the public and private sectors, where he has continued to influence critical decisions on cybersecurity and national defense.

    Following his career in public service, Tenet spent 17 years at Allen & Company LLC, a privately held investment bank in New York. For 12 of those years, he served as Chairman of the company.

    In commenting on his appointment, Tenet said: “Cybersecurity is no longer just a technical challenge; it’s a strategic imperative for every organization. Illumio’s approach to breach containment, powered by an AI-driven security graph, represents the kind of forward-thinking innovation needed to counter today’s sophisticated threats. I’m honored to join them in this mission.”

    Director Tenet’s appointment comes as Illumio is redefining the cybersecurity landscape through its breach containment platform, powered by its proprietary AI security graph. Illumio enables organizations to quickly identify, mitigate, and contain threats across hybrid and multi-cloud environments. With the recent launch of Illumio Insights, combined with its industry-leading Zero Trust segmentation product, Illumio is giving defenders the tools necessary to survive and thrive in today’s post-breach world.

    About Illumio   

    Illumio is the leader in ransomware and breach containment, redefining how organizations contain cyberattacks and enable operational resilience. Powered by an AI security graph, our breach containment platform identifies and contains threats across hybrid multi-cloud environments – stopping the spread of attacks before they become disasters.

    Recognized as a Leader in the Forrester Wave™ for Microsegmentation, Illumio enables Zero Trust, strengthening cyber resilience for the infrastructure, systems, and organizations that keep the world running.

    Contact : comms-team@illumio.com  

    The MIL Network –

  • MIL-OSI USA: 27 Members or Associates of Tren de Aragua Charged with Racketeering, Narcotics, Sex Trafficking, Robbery and Firearms offenses

    Source: US State of California

    Note: A copy of the Anti-Tren indictment can be found here.

    Today, two superseding indictments were unsealed charging 27 individuals currently or formerly associated with the designated foreign terrorist organization Tren de Aragua (TdA) with racketeering conspiracy, sex trafficking conspiracy, drug trafficking conspiracy, robbery, and firearms offenses. The first superseding indictment (the “TdA Indictment”) charges six alleged members of TdA. The second superseding indictment (the “Anti-Tren Indictment”) charges 19 alleged members of “Anti-Tren,” a splinter faction comprised of former TdA members, along with two additional associates of Anti-Tren. Of the 27 defendants, 21 are in federal custody, including 16 who were already in federal criminal, immigration, or state custody and five who were arrested last night and today in operations in New York and other jurisdictions.

    “As alleged, Tren de Aragua is not just a street gang – it is a highly structured terrorist organization that has destroyed American families with brutal violence, engaged in human trafficking, and spread deadly drugs through our communities,” said Attorney General Pamela Bondi. “Today’s indictments and arrests span three states and will devastate TdA’s infrastructure as we work to completely dismantle and purge this organization from our country.”

    “Today, we have filed charges against 27 alleged members, former members, and associates of Tren de Aragua, for committing murders and shootings, forcing young women trafficked from Venezuela into commercial sex work, robbing and extorting small businesses, and selling ‘tusi,’ a pink powdery drug that has become their calling card,” said Acting U.S. Attorney Matthew Podolsky for the Southern District of New York.  “Today’s Indictments make clear that this Office will work tirelessly to keep the law-abiding residents of New York City safe, and hold accountable those who bring violence to our streets.”“Tren de Aragua is one of the most dangerous gangs in the country, and the NYPD has taken significant action to shut down their operations in New York City,” said New York City Police Department (NYPD) Commissioner Jessica S. Tisch.  “For the first time ever, TdA is being named and charged as the criminal enterprise that it is. This isn’t just street crime—it’s organized racketeering, and this gang has shown zero regard for the safety of New Yorkers. As alleged in the indictment, these defendants wreaked havoc in our communities, trafficking women for sexual exploitation, flooding our streets with drugs, and committing violent crimes with illegal guns.  Thanks to the dedicated members of the NYPD and the important work of our federal partners, their time is up.”

    According to the allegations contained in the Indictments:[1]

    The TdA Indictment

    TdA is a criminal organization that operated throughout New York City, including the boroughs of the Bronx and Queens, as well as internationally in Venezuela, Peru, and elsewhere. The purposes of TdA included:

    • Preserving and protecting the power and territory of TdA and its members and associates through acts involving murder, assault, robbery, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at former members and associates of TdA who associated with a splinter organization known as Anti-Tren.
    • Enriching the members and associates of TdA through, among other things:
      • The unlawful smuggling of individuals, including young women from Venezuela, into Peru and the United States;
      • The sex trafficking of young women (whom members and associates of TdA often refer to as “multadas”) who had been unlawfully smuggled into Peru and the United States;
      • The trafficking of controlled substances, including a mixed substance called “tusi” that contains ketamine; and
      • Armed robberies.
    • Keeping victims and potential victims in fear of TdA and its members and associates through threats and acts of violence.
    • Promoting and enhancing TdA and the reputation and activities of its members and associates.
    • Providing assistance to members and associates of TdA who committed crimes for and on behalf of TdA, such as lodging and interstate transportation for members and associates of TdA to flee prosecution.
    • Protecting TdA and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of TdA.

    Members and associates of TdA transported “multadas” from Venezuela into Peru and the United States in exchange for debts that the “multadas” would pay back to TdA by engaging in commercial sex work. Members of TdA enforced compliance among “multadas” by, among other things:

    • Threatening to kill “multadas” and their families,
    • Assaulting “multadas,”
    • Shooting or killing “multadas,” and
    • Tracking down and kidnapping “multadas” who tried to flee.

    Members of TdA also committed and conspired, attempted, and threatened to commit, acts of violence, including acts involving murder and assault, to protect and expand TdA’s criminal operations; resolve disputes within TdA; to retaliate against rival organizations, including Anti-Tren; and to maintain control over sex trafficking victims. TdA members and associates also trafficked controlled substances, committed robberies, and obtained, possessed, trafficked, and used firearms and ammunition.

    The TdA Indictment charges Jarwin Valero-Calderon, also known as “La Fama,” 29; Samuel Gonzalez Castro, also known as “Klei” and “Kley, ” 28; Eferson Morillo-Gomez, also known as “Jefferson” and “Efe Trebol,” 20; Brayan Oliveros-Chero, 28; Sandro Oliveros-Chero, 25; and Armando Jose Perez Gonzalez, also known as “Biblia,” 30, (the “TdA Defendants”) with conspiring to participate in the TdA racketeering enterprise. Various of the TdA defendants are also charged with participating in offenses relating to drug trafficking, carjacking, robbery, and extortion, as well as firearms offenses. This case is assigned U.S. District Judge Denise L. Cote for the Southern District of New York.

    If convicted of racketeering conspiracy, Valero-Calderon, Gonzalez Castro, Morillo-Gomez, Brayan Oliveros-Chero, Sandro Oliveros-Chero, and Perez Gonzalez face up to life in prison. If convicted of drug trafficking conspiracy, Valero-Calderon, Brayan Oliveros-Chero, Sandro Oliveros-Chero, and Perez Gonzalez face up to 20 years in prison. If convicted of carjacking conspiracy, Valero-Calderon, Gonzalez Castro, and Morillo-Gomez face up to five years in prison. If convicted of carjacking, Valero-Calderon, Gonzalez Castro, and Morillo-Gomez face up to 15 years in prison. If convicted of Hobbs Act robbery, Valero-Calderon, Gonzalez Castro, and Morillo-Gomez face up to 20 years in prison. If convicted of firearm use, carrying, and possession, Valero-Calderon, Gonzalez Castro, and Morillo-Gomez face up to life in prison with a mandatory minimum sentence of seven years in prison. If convicted of attempted Hobbs Act extortion, Valero-Calderon, Gonzalez Castro, and Morillo-Gomez face up to 20 years in prison. If convicted of firearm use, carrying, and possession – conspiracy, Valero-Calderon, Gonzalez Castro, Morillo-Gomez, Brayan Oliveros-Chero, and Sandro Oliveros-Chero face up to 20 years in prison. If convicted of possession of ammunition by an illegal alien, Brayan Oliveros-Chero faces up to 15 years in prison. If convicted of possession of a firearm and ammunition by an illegal alien, Sandro Oliveros-Chero faces up to 15 years in prison. If convicted of firearm use, carrying, and possession, Perez Gonzalez faces up to life in prison with a mandatory minimum sentence of five years in prison. If convicted of possession of a firearm and ammunition by an illegal alien, Perez Gonzalez faces up to 15 years in prison.

    The Anti-Tren Indictment

    Anti-Tren is a criminal organization almost exclusively comprised of former members and associates of TdA. Anti-Tren operated throughout New York City, including the boroughs of the Bronx and Queens, and in New Jersey, and elsewhere. Like TdA, the purposes of Anti-Tren included:

    • Preserving and protecting the power and territory of Anti-Tren and its members and associates through acts involving murder, assault, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at members and associates of TdA.
    • Enriching the members and associates of Anti-Tren through, among other things:
      • The unlawful smuggling of individuals, including women and girls from Venezuela, into the United States;
      • The sex trafficking of “multadas” who had been unlawfully smuggled into the United States;
      • The trafficking of controlled substances, including “tusi”; and
      • Armed robberies.
    • Keeping victims and potential victims in fear of Anti-Tren and its members and associates through threats and acts of violence.
    • Promoting and enhancing Anti-Tren and the reputation and activities of its members and associates.
    • Providing assistance to members and associates of Anti-Tren who committed crimes for and on behalf of Anti-Tren, such as lodging and interstate transportation for members and associates of Anti-Tren to flee prosecution, or bail money for members or associates of Anti-Tren who are detained.
    • Protecting Anti-Tren and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of Anti-Tren.

    Like TdA, Anti-Tren engaged in human smuggling and sex trafficking of “multadas,” into the United States in exchange for debts that the “multadas” would pay back by engaging in commercial sex work. And like TdA, members of Anti-Tren enforced compliance among “multadas” by, among other things:

    • Threatening to kill “multadas” and their families,
    • Assaulting “multadas,”
    • Shooting or killing “multadas,” and
    • Tracking down and kidnapping “multadas” who tried to flee.

    Members of Anti-Tren also committed and conspired, attempted, and threatened to commit, acts of violence, including acts involving murder and assault, to protect and to expand Anti-Tren’s criminal operations, resolve disputes within Anti-Tren, to retaliate against rival organizations, including Tren de Aragua, and to maintain control over sex trafficking victims. Anti-Tren members and associates also trafficked controlled substances, committed robberies, and obtained, possessed, trafficked, and used firearms and ammunition.

    The Anti-Tren Indictment charges Reinaldo Rafael Gonzales-Valdez, also known as “Mariguana” and “Marijuana,” 41; Jose Manuel Guerrero-Zarate, also known as “Mantequilla,” 29; Jose David Valencia-De La Rosa, 27; Johan Carlos Mujica-Urpin, also known as “Sobrino,” 27; Luis Jose Velasquez-Hurtado, also known as “Chito,” 30; Stefano Said Pachon-Romero, 21; Guillermo Freites Velazquez, 26; Jesus David Barrios Garcia, also known as “Morocho,” 27; Giovanny Valentin Blanco Luciano, also known as “Cachorrito,” 20; Anderson Jesus Duran Berroteran, also known as “Cachorro, ” 22; Roiman Noe Bello Ferrer, 37; Luis Miguel Rodriguez-Tapia, 25; Mario Andres Pereda, also known as “Cara de Hombre,” 44; Anderson Smith Zambrano-Pacheco, 26; Yeferson Alejandro Prieto Galviz, also known as “Flaco T” and“Flacote,” 24; Jhonkennedy Bravo-Castro, also known as  “Negrito,” 27; Yender Maykier Mata, 36; Kellen Alejandro Jaspe Bustamante, 20; and Luis Andres Bello-Chacon, also known as  “Care de Peo,” 31 (the “Anti-Tren Defendants”) with conspiring to participate in an Anti-Tren racketeering enterprise. Various of the Anti-Tren Defendants, along with co-defendants Wilfredo Jose Avendaño Carrizalez and Carlos Gabriel Santos Mogollon, are also charged with participating in offenses relating to sex trafficking, conspiracy to import and harbor aliens, drug trafficking, obstruction of justice, and firearms offenses. This case is assigned U.S. District Judge Mary Kay Vyskocil of the Southern District of New York.

    If convicted of racketeering conspiracy, Gonzales-Valdez, Guerrero-Zarate, Valencia-De La Rosa, Mujica-Urpin, Velasquez-Hurtado, Pachon-Romero, Freites Velazquez, Barrios Garcia, Blanco Luciano, Duran Berroteran, Bello Ferrer, Rodriguez-Tapia, Pereda, Zambrano-Pacheco, Prieto Galviz, Bravo-Castro, Maykier Mata, Jaspe Bustamante, and Bello-Chacon face up to life in prison. If convicted of sex trafficking conspiracy, Gonzales-Valdez, Guerrero-Zarate, Valencia-De La Rosa, Mujica-Urpin, Velasquez-Hurtado, Pachon-Romero, Freites Velazquez, Barrios Garcia, Duran Berroteran, Rodriguez-Tapia, Pereda, Zambrano-Pacheco, and Bravo-Castro face up to life in prison. If convicted of alien importation and harboring for immoral purpose – conspiracy, Gonzales-Valdez, Guerrero-Zarate, Valencia-De La Rosa, Mujica-Urpin, Velasquez-Hurtado, Pachon-Romero, Freites Velazquez, Barrios Garcia, Duran Berroteran, Rodriguez-Tapia, Pereda, Zambrano-Pacheco, and Bravo-Castro face up to five years in prison. If convicted of drug trafficking conspiracy, Gonzales-Valdez, Guerrero-Zarate, Mujica-Urpin, Freites Velazquez, Barrios Garcia, Blanco Luciano, Duran Berroteran, Prieto Galviz, Maykier Mata, Jaspe Bustamante, and Bello-Chacon face up to 20 years in prison. If convicted of firearm use, carrying, and possession, Gonzales-Valdez, Guerrero-Zarate, Mujica-Urpin, Freites Velazquez, Barrios Garcia, Blanco Luciano, Zambrano-Pacheco, Prieto Galviz, Maykier Mata, Jaspe Bustamante, and Bello-Chacon face up to life in prison with a mandatory minimum sentence of five years in prison. If convicted of obstruction of justice, Velasquez-Hurtado faces up to 20 years in prison. If convicted of unlicensed dealing of firearms, Pachon-Romero faces up to five years in prison. If convicted of possession of a firearm and ammunition by a fugitive from justice and illegal alien, Zambrano-Pacheco, faces up to 15 years in prison. If convicted of possession of a firearm and ammunition by an illegal alien, Bravo-Castro, Avendaño Carrizalez and Santos Mogollonface up to 15 years in prison.

    The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

    Attorney General Bondi and Acting U.S. Attorney Podolsky praised the outstanding investigative work of HSI and NYPD. They also thanked the Arapahoe County District Attorney’s Office in Colorado; the Aurora Police Department in Aurora, Colorado; the New York/New Jersey Regional Fugitive Task Force of the U.S. Marshals Service (USMS); the HSI National Gang Unit and New York Human Intelligence Division; ICE’s Enforcement and Removal Operations New York; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the New York City Crime Analysis Center at the New York/New Jersey High Intensity Drug Trafficking Area.

    This case received significant support from Joint Task Force Vulcan (JTFV), which was created in 2019 to eradicate MS-13 and now expanded to target Tren de Aragua, and is comprised of U.S. Attorney’s Offices across the country, including the Southern District of New York; the Eastern District of New York; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; the Southern District of Texas; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division.  Additionally, the FBI; DEA; HSI; ATF; USMS; and the Federal Bureau of Prisons have been essential law enforcement partners with JTFV.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Justice Department 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). In February 2025, Tren de Aragua was designated a Foreign Terrorist Organization.

    Assistant U.S. Attorneys Jun Xiang, Kathryn Wheelock, and Timothy Ly of the U.S. Attorney’s Office for the Southern District of New York’s Violent and Organized Crime Unit are in charge of the prosecution.

    The charges contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

    [1] The charges contained in the Indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty.

    MIL OSI USA News –

  • MIL-OSI Security: 27 Members Or Associates Of Tren De Aragua Charged With Racketeering, Narcotics, Sex Trafficking, Robbery And Firearms Offenses

    Source: Office of United States Attorneys

    Matthew Podolsky, the Acting United States Attorney for the Southern District of New York; Pamela Bondi, the Attorney General of the United States; Kristi Noem, the Secretary of the Department of Homeland Security (“DHS”); Todd M. Lyons, the Acting Director of U.S. Immigration and Customs Enforcement; and Jessica S. Tisch, the Commissioner of the New York City Police Department (“NYPD”), announced today two Superseding Indictments charging 27 individuals currently or formerly associated with the designated foreign terrorist organization Tren de Aragua (“TdA”) with racketeering conspiracy, sex trafficking conspiracy, drug trafficking conspiracy, robbery, and firearms offenses.  The first Superseding Indictment (the “TdA Indictment”) charges six alleged members of TdA.  The second Superseding Indictment (the “Anti-Tren Indictment”) charges 19 alleged members of “Anti-Tren,” a splinter faction comprised of former TdA members, along with two additional associates of Anti-Tren.  Of the 27 defendants, 21 are in federal custody, including 16 who were already in federal criminal, immigration, or state custody and five who were arrested last night and today in operations in New York and other jurisdictions.

    Acting U.S. Attorney Matthew Podolsky said: “Today, we have filed charges against 27 alleged members, former members, and associates of Tren de Aragua, for committing murders and shootings, forcing young women trafficked from Venezuela into commercial sex work, robbing and extorting small businesses, and selling ‘tusi,’ a pink powdery drug that has become their calling card.  Today’s Indictments make clear that this Office will work tirelessly to keep the law-abiding residents of New York City safe, and hold accountable those who bring violence to our streets.”

    Attorney General Pam Bondi said: “As alleged, Tren de Aragua is not just a street gang – it is a highly structured terrorist organization that has destroyed American families with brutal violence, engaged in human trafficking, and spread deadly drugs through our communities.  Today’s indictments and arrests span three states and will devastate TdA’s infrastructure as we work to completely dismantle and purge this organization from our country.” 

    NYPD Commissioner Jessica S. Tisch said: “Tren de Aragua is one of the most dangerous gangs in the country, and the NYPD has taken significant action to shut down their operations in New York City.  For the first time ever, TdA is being named and charged as the criminal enterprise that it is.  This isn’t just street crime—it’s organized racketeering, and this gang has shown zero regard for the safety of New Yorkers.  As alleged in the indictment, these defendants wreaked havoc in our communities, trafficking women for sexual exploitation, flooding our streets with drugs, and committing violent crimes with illegal guns.  Thanks to the dedicated members of the NYPD and the important work of our federal partners, their time is up.”

    According to the allegations contained in the Indictments:[1]

    The TdA Indictment

    TdA is a criminal organization that operated throughout New York City, including the boroughs of the Bronx and Queens, as well as internationally in Venezuela, Peru, and elsewhere.  The purposes of TdA included:

    • Preserving and protecting the power and territory of TdA and its members and associates through acts involving murder, assault, robbery, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at former members and associates of TdA who associated with a splinter organization known as Anti-Tren.
    • Enriching the members and associates of TdA through, among other things:
      • The unlawful smuggling of individuals, including young women from Venezuela, into Peru and the U.S.;
      • The sex trafficking of young women (whom members and associates of TdA often refer to as “multadas”) who had been unlawfully smuggled into Peru and the U.S.;
      • The trafficking of controlled substances, including a mixed substance called “tusi” that contains ketamine; and
      • Armed robberies.
    • Keeping victims and potential victims in fear of TdA and its members and associates through threats and acts of violence.
    • Promoting and enhancing TdA and the reputation and activities of its members and associates.
    • Providing assistance to members and associates of TdA who committed crimes for and on behalf of TdA, such as lodging and interstate transportation for members and associates of TdA to flee prosecution.
    • Protecting TdA and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of TdA.

    Members and associates of TdA transported “multadas” from Venezuela into Peru and the U.S. in exchange for debts that the “multadas” would pay back to TdA by engaging in commercial sex work.  Members of TdA enforced compliance among “multadas” by, among other things:

    • Threatening to kill “multadas” and their families,
    • Assaulting “multadas,”
    • Shooting or killing “multadas,” and
    • Tracking down and kidnapping “multadas” who tried to flee.

    Members of TdA also committed and conspired, attempted, and threatened to commit, acts of violence, including acts involving murder and assault, to protect and expand TdA’s criminal operations; resolve disputes within TdA; to retaliate against rival organizations, including Anti-Tren; and to maintain control over sex trafficking victims.  TdA members and associates also trafficked controlled substances, committed robberies, and obtained, possessed, trafficked, and used firearms and ammunition.

    The TdA Indictment charges JARWIN VALERO-CALDERON, a/k/a “La Fama”; SAMUEL GONZALEZ CASTRO, a/k/a “Klei,” a/k/a “Kley”; EFERSON MORILLO-GOMEZ, a/k/a “Jefferson,” a/k/a “Efe Trebol”; BRAYAN OLIVEROS-CHERO; SANDRO OLIVEROS-CHERO; and ARMANDO JOSE PEREZ GONZALEZ, a/k/a “Biblia” (the “TdA Defendants”) with conspiring to participate in the TdA racketeering enterprise.  Various of the TdA Defendants are also charged with participating in offenses relating to drug trafficking, carjacking, robbery, and extortion, as well as firearms offenses.  This case is assigned U.S. District Judge Denise L. Cote.

    The Anti-Tren Indictment

    Anti-Tren is a criminal organization almost exclusively comprised of former members and associates of TdA.  Anti-Tren operated throughout New York City, including the boroughs of the Bronx and Queens, and in New Jersey, and elsewhere.  Like TdA, the purposes of Anti-Tren included:

    • Preserving and protecting the power and territory of Anti-Tren and its members and associates through acts involving murder, assault, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at members and associates of TdA.
    • Enriching the members and associates of Anti-Tren through, among other things:
      • The unlawful smuggling of individuals, including women and girls from Venezuela, into the U.S.;
      • The sex trafficking of “multadas” who had been unlawfully smuggled into the U.S.;
      • The trafficking of controlled substances, including “tusi”; and
      • Armed robberies.
    • Keeping victims and potential victims in fear of Anti-Tren and its members and associates through threats and acts of violence.
    • Promoting and enhancing Anti-Tren and the reputation and activities of its members and associates.
    • Providing assistance to members and associates of Anti-Tren who committed crimes for and on behalf of Anti-Tren, such as lodging and interstate transportation for members and associates of Anti-Tren to flee prosecution, or bail money for members or associates of Anti-Tren who are detained.
    • Protecting Anti-Tren and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of Anti-Tren.

    Like TdA,  Anti-Tren engaged in human smuggling and sex trafficking of “multadas,” into the U.S. in exchange for debts that the “multadas” would pay back by engaging in commercial sex work. And like TdA, members of Anti-Tren enforced compliance among “multadas” by, among other things:

    • Threatening to kill “multadas” and their families,
    • Assaulting “multadas,”
    • Shooting or killing “multadas,” and
    • Tracking down and kidnapping “multadas” who tried to flee.

    Members of Anti-Tren also committed and conspired, attempted, and threatened to commit, acts of violence, including acts involving murder and assault, to protect and to expand Anti-Tren’s criminal operations, resolve disputes within Anti-Tren, to retaliate against rival organizations, including Tren de Aragua, and to maintain control over sex trafficking victims.  Anti-Tren members and associates also trafficked controlled substances, committed robberies, and obtained, possessed, trafficked, and used firearms and ammunition.

    The Anti-Tren Indictment charges REINALDO RAFAEL GONZALES-VALDEZ, a/k/a “Mariguana,” a/k/a “Marijuana”; JOSE MANUEL GUERRERO-ZARATE, a/k/a “Mantequilla”; JOSE DAVID VALENCIA-DE LA ROSA; JOHAN CARLOS MUJICA-URPIN, a/k/a “Sobrino”; LUIS JOSE VELASQUEZ-HURTADO, a/k/a “Chito”; STEFANO SAID PACHON-ROMERO; GUILLERMO FREITES VELAZQUEZ; JESUS DAVID BARRIOS GARCIA, a/k/a “Morocho”; GIOVANNY VALENTIN BLANCO LUCIANO, a/k/a “Cachorrito”; ANDERSON JESUS DURAN BERROTERAN, a/k/a “Cachorro”; ROIMAN NOE BELLO FERRER; LUIS MIGUEL RODRIGUEZ-TAPIA; MARIO ANDRES PEREDA, a/k/a “Cara de Hombre”; ANDERSON SMITH ZAMBRANO-PACHECO; YEFERSON ALEJANDRO PRIETO GALVIZ, a/k/a “Flaco T,” a/k/a “Flacote”; JHONKENNEDY BRAVO-CASTRO, a/k/a “Negrito”; YENDER MAYKIER MATA; KELLEN ALEJANDRO JASPE BUSTAMANTE; and LUIS ANDRES BELLO-CHACON, a/k/a “Care de Peo” (the “Anti-Tren Defendants”) with conspiring to participate in an Anti-Tren racketeering enterprise.  Various of the Anti-Tren Defendants, along with co-defendants WILFREDO JOSE AVENDAÑO CARRIZALEZ and CARLOS GABRIEL SANTOS MOGOLLON, are also charged with participating in offenses relating to sex trafficking, conspiracy to import and harbor aliens, drug trafficking, obstruction of justice, and firearms offenses.  This case is assigned U.S. District Judge Mary Kay Vyskocil.

    *                *                *

    A chart containing the names, ages, charges, and maximum penalties for the defendants is set forth below.

    The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

    Mr. Podolsky praised the outstanding investigative work of Homeland Security Investigations (“HSI”) and NYPD.  He also thanked the Arapahoe County District Attorney’s Office in Colorado; the Aurora Police Department in Aurora, Colorado; the New York/New Jersey Regional Fugitive Task Force of the U.S. Marshals Service (“USMS”); the Homeland Security Investigations National Gang Unit and New York Human Intelligence Division; U.S. Immigration and Customs Enforcement’s New York Enforcement and Removal Operations; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”); and the New York City Crime Analysis Center at the New York/New Jersey High Intensity Drug Trafficking Area.

    This case received significant support from Joint Task Force Vulcan (“JTFV”), which was created in 2019 to eradicate MS-13 and now expanded to target Tren de Aragua, and is comprised of U.S. Attorney’s Offices across the country, including the Southern District of New York; the Eastern District of New York; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; the Southern District of Texas; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division.  Additionally, the FBI; DEA; HSI; ATF; USMS; and the Federal Bureau of Prisons have been essential law enforcement partners with JTFV.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Justice Department 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). In February 2025, Tren de Aragua was designated a Foreign Terrorist Organization.

    This case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Jun Xiang, Kathryn Wheelock, and Timothy Ly are in charge of the prosecution.

    The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

    The Tren de Aragua Indictment

    COUNT

    CHARGE

    DEFENDANTS

    MAX. PENALTIES

    1

    Racketeering

    conspiracy

    18 U.S.C. § 1962(d)

    JARWIN VALERO-CALDERON,

         a/k/a “La Fama,” 29;

    SAMUEL GONZALEZ CASTRO,

         a/k/a “Klei,” 

         a/k/a “Kley,” 28;

    EFERSON MORILLO-GOMEZ,

         a/k/a “Jefferson,” 

         a/k/a “Efe Trebol,” 20;

    BRAYAN OLIVEROS-CHERO, 28;

    SANDRO OLIVEROS-CHERO, 25; and

    ARMANDO JOSE PEREZ GONZALEZ,

               a/k/a “Biblia,” 30

    		 Life in prison

    2

    Drug trafficking conspiracy

    21 U.S.C. §  846

    JARWIN VALERO-CALDERON,

         a/k/a “La Fama,”

    BRAYAN OLIVEROS-CHERO,

    SANDRO OLIVEROS-CHERO, and

    ARMANDO JOSE PEREZ GONZALEZ,

               a/k/a “Biblia”

    		 20 years in prison

    3

    Carjacking conspiracy

    18 U.S.C. § 371

    JARWIN VALERO-CALDERON,

         a/k/a “La Fama,”

    SAMUEL GONZALEZ CASTRO,

         a/k/a “Klei,” 

         a/k/a “Kley,” and

    EFERSON MORILLO-GOMEZ,

         a/k/a “Jefferson,” 

         a/k/a “Efe Trebol”

    		 5 years in prison

    4

    Carjacking

    18 U.S.C. § 2119

    JARWIN VALERO-CALDERON,

         a/k/a “La Fama,”

    SAMUEL GONZALEZ CASTRO,

         a/k/a “Klei,” 

         a/k/a “Kley,” and

    EFERSON MORILLO-GOMEZ,

         a/k/a “Jefferson,” 

         a/k/a “Efe Trebol”

    		 15 years in prison

    5

    Hobbs Act robbery

    18 U.S.C. §§  1951 and 2

    JARWIN VALERO-CALDERON,

         a/k/a “La Fama,”

    SAMUEL GONZALEZ CASTRO,

         a/k/a “Klei,” 

         a/k/a “Kley,” and

    EFERSON MORILLO-GOMEZ,

         a/k/a “Jefferson,” 

         a/k/a “Efe Trebol”

    		 20 years in prison

    6

    Firearm use, carrying, and possession

    18 U.S.C. §§  924(c)(1)(A)(i) and (ii), and 2

    JARWIN VALERO-CALDERON,

         a/k/a “La Fama,”

    SAMUEL GONZALEZ CASTRO,

         a/k/a “Klei,” 

         a/k/a “Kley,” and

    EFERSON MORILLO-GOMEZ,

         a/k/a “Jefferson,” 

         a/k/a “Efe Trebol”

    Life in prison

    Mandatory minimum sentence of 7 years in prison

    7

    Attempted Hobbs Act extortion

    18 U.S.C. §§  1951 and 2

    JARWIN VALERO-CALDERON,

         a/k/a “La Fama,”

    SAMUEL GONZALEZ CASTRO,

         a/k/a “Klei,” 

         a/k/a “Kley,” and

    EFERSON MORILLO-GOMEZ,

         a/k/a “Jefferson,” 

         a/k/a “Efe Trebol”

    		 20 years in prison

    8

    Firearm use, carrying, and possession – conspiracy

    18 U.S.C. §  924(o)

    JARWIN VALERO-CALDERON,

         a/k/a “La Fama,”

    SAMUEL GONZALEZ CASTRO,

         a/k/a “Klei,” 

         a/k/a “Kley,” and

    EFERSON MORILLO-GOMEZ,

         a/k/a “Jefferson,” 

         a/k/a “Efe Trebol”

    		 20 years in prison

    9

    Firearm use, carrying, and possession – conspiracy

    18 U.S.C. §  924(o)

    BRAYAN OLIVEROS-CHERO, and

    SANDRO OLIVEROS-CHERO

    		 20 years in prison

    10

    Firearm use, carrying, and possession

    18 U.S.C. §  924(c)(1)(A)(i) and 2

    BRAYAN OLIVEROS-CHERO, and

    SANDRO OLIVEROS-CHERO

    		 20 years in prison

    11

    Possession of ammunition by an illegal alien

    18 U.S.C. §§  922(g)(5) and 2

    		 BRAYAN OLIVEROS-CHERO 15 years in prison

    12

    Possession of a firearm and ammunition by an illegal alien

    18 U.S.C. §§  922(g)(5) and 2

    		 SANDRO OLIVEROS-CHERO 15 years in prison

    13

    Firearm use, carrying, and possession

    18 U.S.C. §§  924(c)(1)(A)(i) and 2

    ARMANDO JOSE PEREZ GONZALEZ,

               a/k/a “Biblia,”

    Life in prison

    Mandatory minimum sentence of 5 years in prison

    14

    Possession of a firearm and ammunition by an illegal alien

    18 U.S.C. §§  922(g)(5) and 2

    ARMANDO JOSE PEREZ GONZALEZ,

               a/k/a “Biblia,”

    		 15 years in prison

    The Anti-Tren Indictment

    COUNT

    CHARGE

    DEFENDANTS

    MAX. PENALTIES

    1

    Racketeering

    conspiracy

    18 U.S.C. § 1962(d)

    REINALDO RAFAEL GONZALES-VALDEZ, 

         a/k/a “Mariguana,” 

         a/k/a “Marijuana,” 41;

    JOSE MANUEL GUERRERO-ZARATE,

         a/k/a “Mantequilla,” 29;

    JOSE DAVID VALENCIA-DE LA ROSA, 27;

    JOHAN CARLOS MUJICA-URPIN,

          a/k/a “Sobrino,” 27;

    LUIS JOSE VELASQUEZ-HURTADO,

         a/k/a “Chito,” 30;

    STEFANO SAID PACHON-ROMERO, 21;

    GUILLERMO ENRIQUE FREITES-VELAZQUEZ, 26;

    JESUS DAVID BARRIOS GARCIA,

         a/k/a “Morocho,” 27;

    GIOVANNY VALENTIN BLANCO LUCIANO,

         a/k/a “Cachorrito,” 20;

    ANDERSON JESUS DURAN BERROTERAN,

         a/k/a “Cachorro,” 22;

    ROIMAN NOE BELLO FERRER, 37;

    LUIS MIGUEL RODRIGUEZ-TAPIA, 25;

    MARIO ANDRES PEREDA,

         a/k/a “Cara de Hombre,” 44;

    ANDERSON SMITH ZAMBRANO-PACHECO, 26;

    YEFERSON ALEJANDRO PRIETO GALVIZ,

         a/k/a “Flaco T,” 

         a/k/a “Flacote,” 24;

    JHONKENNEDY BRAVO-CASTRO,

         a/k/a “Negrito,” 27;

    YENDER MAYKIER MATA, 36;

    KELLEN ALEJANDRO JASPE BUSTAMANTE, 20; and

    LUIS ANDRES BELLO-CHACON,

        a/k/a “Care de Peo,” 31

    		 Life in prison

    2

    Sex trafficking conspiracy

    18 U.S.C. § 1594(c)

    REINALDO RAFAEL GONZALES-VALDEZ, 

          a/k/a “Mariguana,” a/k/a “Marijuana,”

    JOSE MANUEL GUERRERO-ZARATE, 

          a/k/a “Mantequilla,”  

    JOSE DAVID VALENCIA-DE LA ROSA,

    JOHAN CARLOS MUJICA-URPIN, 

          a/k/a “Sobrino,”

    LUIS JOSE VELASQUEZ-HURTADO,

          a/k/a “Chito,”

    STEFANO SAID PACHON-ROMERO, GUILLERMO FREITES VELAZQUEZ,

    JESUS DAVID BARRIOS GARCIA, 

          a/k/a “Morocho,”

    ANDERSON JESUS DURAN BERROTERAN,        a/k/a “Cachorro,”

    LUIS MIGUEL RODRIGUEZ-TAPIA,

    MARIO ANDRES PEREDA, 

          a/k/a “Cara de Hombre,”

    ANDERSON SMITH ZAMBRANO-PACHECO, and

    JHONKENNEDY BRAVO-CASTRO,

          a/k/a “Negrito”

    		 Life in prison

    3

    Alien importation and harboring for immoral purpose – conspiracy

    18 U.S.C. § 371

    REINALDO RAFAEL GONZALES-VALDEZ, 

          a/k/a “Mariguana,” a/k/a “Marijuana,”

    JOSE MANUEL GUERRERO-ZARATE, 

          a/k/a “Mantequilla,” JOSE DAVID VALENCIA-DE LA ROSA,

    JOHAN CARLOS MUJICA-URPIN, 

          a/k/a “Sobrino,”

    LUIS JOSE VELASQUEZ-HURTADO,

          a/k/a “Chito,”

    STEFANO SAID PACHON-ROMERO, GUILLERMO FREITES VELAZQUEZ,

    JESUS DAVID BARRIOS GARCIA, 

          a/k/a “Morocho,”

    ANDERSON JESUS DURAN BERROTERAN,        a/k/a “Cachorro,”

    LUIS MIGUEL RODRIGUEZ-TAPIA,

    MARIO ANDRES PEREDA, 

          a/k/a “Cara de Hombre,”

    ANDERSON SMITH ZAMBRANO-PACHECO, and

    JHONKENNEDY BRAVO-CASTRO,

          a/k/a “Negrito”

    		 5 years in prison

    4

    Drug trafficking conspiracy

    21 U.S.C. §  846

    REINALDO RAFAEL GONZALES-VALDEZ,

          a/k/a “Mariguana,” a/k/a “Marijuana,”

    JOSE MANUEL GUERRERO-ZARATE, 

          a/k/a “Mantequilla,”  

    JOHAN CARLOS MUJICA-URPIN, 

          a/k/a “Sobrino,”

    GUILLERMO FREITES VELAZQUEZ,

    JESUS DAVID BARRIOS GARCIA, 

          a/k/a “Morocho,”

    GIOVANNY VALENTIN BLANCO LUCIANO, 

          a/k/a “Cachorrito,”  

    ANDERSON SMITH ZAMBRANO-PACHECO,

    YEFERSON ALEJANDRO PRIETO GALVIZ,        a/k/a “Flaco T,” a/k/a “Flacote,”

    YENDER MAYKIER MATA,

    KELLEN ALEJANDRO JASPE BUSTAMANTE, and

    LUIS ANDRES BELLO-CHACON, 

          a/k/a “Care de Peo”

    		 20 years in prison

    5

    Firearm use, carrying, and possession

    18 U.S.C. §§ 924(c)(1)(A)(i) and 2

    REINALDO RAFAEL GONZALES-VALDEZ,

          a/k/a “Mariguana,” a/k/a “Marijuana,”

    JOSE MANUEL GUERRERO-ZARATE, 

          a/k/a “Mantequilla,”  

    JOHAN CARLOS MUJICA-URPIN, 

          a/k/a “Sobrino,”

    GUILLERMO FREITES VELAZQUEZ,

    JESUS DAVID BARRIOS GARCIA, 

          a/k/a “Morocho,”

    GIOVANNY VALENTIN BLANCO LUCIANO, 

          a/k/a “Cachorrito,”  

    ANDERSON SMITH ZAMBRANO-PACHECO,

    YEFERSON ALEJANDRO PRIETO GALVIZ,        a/k/a “Flaco T,” a/k/a “Flacote,”

    YENDER MAYKIER MATA,

    KELLEN ALEJANDRO JASPE BUSTAMANTE, and

    LUIS ANDRES BELLO-CHACON, 

               a/k/a “Care de Peo”

    Life in prison

    Mandatory minimum sentence of 5 years in prison

    6

    Obstruction of justice

    18 U.S.C. §§ 1512(c) and 2

    LUIS JOSE VELASQUEZ-HURTADO,

          a/k/a “Chito,”

    		 20 years in prison

    7

    Unlicensed dealing of firearms

    18 U.S.C. §§   922(a)(1)(A) and 2

    		 STEFANO PACHON-ROMERO 5 years in prison

    8

    Possession of a firearm and ammunition by a fugitive from justice and illegal alien

    18 U.S.C. §§ 922(g)(2) and (5), and 2

    		 ANDERSON SMITH ZAMBRANO-PACHECO 15 years in prison

    9

    Possession of a firearm and ammunition by an illegal alien

    18 U.S.C. §§  922(g)(5) and 2

    JHONKENNEDY BRAVO-CASTRO,

               a/k/a “Negrito,”

    		 15 years in prison

    10

    Possession of a firearm and ammunition by an illegal alien

    18 U.S.C. §§  922(g)(5) and 2

    WILFREDO JOSE AVENDAÑO CARRIZALEZ, 26; and

    CARLOS GABRIEL SANTOS MOGOLLON, 31

    		 15 years in prison

    [1] The charges contained in the Indictments are merely accusations and the defendants are presumed innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI Security: Manhattan Man Convicted Of Raping And Sexually Abusing Two Teenage Girls And Distributing Methamphetamine To Minors

    Source: Office of United States Attorneys

    Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against SHYMELL EPHRON, a/k/a “Shy,” on two counts of enticement of a minor to engage in unlawful sexual activity, one count of conspiring to distribute methamphetamine and cocaine, and two counts of distributing methamphetamine to a minor, in a trial before U.S. District Judge Margaret M. Garnett.  EPHRON is scheduled to be sentenced on September 19, 2025.

    Acting U.S. Attorney Matthew Podolsky said: “As a unanimous jury found, Shymell Ephron lured two runaway teenagers back to his apartment in Harlem, where he repeatedly raped and sexually abused them for five days while plying them with methamphetamine and alcohol.  Thanks to the FBI and the NYPD, the girls were eventually found and returned to their parents.  I commend these young women for the bravery they showed by testifying at trial.  This Office is committed to keeping the children of New York City safe from sexual predators, and thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, the support of victim services specialists of this Office, and the willingness of the victims to speak up, Ephron has now been convicted for his egregious conduct and will face justice for the harm he caused.” 

    As reflected in the evidence presented at trial:

    Between approximately May 2024 and July 2024, EPHRON worked with others to distribute narcotics, including methamphetamine and cocaine, in Times Square and other locations in New York City.  On or about May 17, 2024, EPHRON approached two teenage girls in Times Square while he was selling drugs.  The girls had run away from home.  EPHRON convinced the two girls to follow him to his residence in Harlem, where they stayed with EPHRON for several days.

    EPHRON engaged in multiple acts of forcible rape, forcible touching, sexual abuse, and illegal sex with a minor while the girls were staying in EPHRON’s apartment.  EPHRON repeatedly provided the girls with methamphetamine, marijuana, and alcohol.  EPHRON also provided a cellphone to the girls to monitor their whereabouts, communicate with them about narcotics, and to persuade, induce, and entice them to return to his apartment each night so he could engage in unlawful sex with them.  Law enforcement agents with the Federal Bureau of Investigation (“FBI”) and the New York City Police Department (“NYPD”) eventually rescued the two girls and returned them to their parents.

    *                *               *

    EPHRON, 35, of New York, New York, was convicted of two counts of coercion and enticement of a minor, each of which carries a mandatory minimum sentence of 10 years in prison and a maximum potential sentence of life in prison; one count of narcotics conspiracy, which carries a maximum potential sentence of 20 years in prison; and two counts of distributing narcotics to a minor, each of which carries a mandatory minimum sentence of one year in prison and a maximum potential sentence of 40 years in prison.

    The mandatory minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge.

    Mr. Podolsky praised the work of the FBI’s Westchester Safe Streets Task Force and the NYPD.  Mr. Podolsky also thanked the New York State Police and the Yorktown Police Department for their assistance in the investigation.

    This case is being handled by the Office’s Violent & Organized Crime Unit.  Assistant U.S. Attorneys Ryan W. Allison, Lisa Daniels, Michael R. Herman, and Andrew W. Jones are in charge of the prosecution.

    MIL Security OSI –

  • MIL-OSI Security: Albanian National Charged with Conspiring to Smuggle Illegal Aliens into the United States

    Source: Office of United States Attorneys

    Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Fatjon Shytani, an Albanian national and resident of the Bronx, New York, with a scheme to smuggle illegal aliens from Canada into the United States for financial gain.  Shytani was arrested yesterday morning and was arraigned this afternoon before United States Magistrate Judge Lois Bloom.

    John J. Durham, United States Attorney for the Eastern District of New York, and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and indictment.

    “As alleged, Shytani conspired to smuggle illegal aliens into the United States to benefit himself financially, but was thwarted by the outstanding work of our law enforcement partners,” stated United States Attorney Durham.  “These types of schemes represent a significant threat to our national security and will not be tolerated.  This case demonstrates our Office’s continued dedication to protect our border security and the integrity of the immigration process.”

    Mr. Durham also thanked U.S. Customs and Border Protection, the Department of Justice’s Office of International Affairs, the New York City Police Department, the Royal Canadian Mounted Police and the Albanian State Police for their valuable assistance during the investigation.

    Fatjon Shytani, an Albanian national, allegedly facilitated the illegal entry of foreign nationals into the United States in exchange for cash payments.  This alleged conspiracy established unauthorized border access designed to circumvent proper protocols and evade authorities.  The FBI remains dedicated to apprehending any individual who profits from violating the borders and security of our nation.

    As alleged in court filings, Shytani and his co-defendants conspired to smuggle foreign nationals from to enter the United States via illegal border crossing at the U.S. border with Canada.  During the course of the investigation, Shytani accepted cash from an undercover agent (UC-1) in exchange for arranging to have the agent’s significant other, who purportedly was from the Republic of Kosovo, smuggled across the Canadian border into the United States.  In reality, the agent’s significant other was another undercover law enforcement agent (UC-2).  Between March 12, 2024 and March 13, 2024, Shytani and UC-1 exchanged phone calls and text messages during which they agreed to meet in person on March 14, 2024, at a coffee shop on Long Island, New York.  On March 14, 2024, Shytani met UC-1 at the agreed-upon location where they discussed details regarding UC-2’s illegal crossing from Canada into the United States. At the conclusion of the meeting, UC-1 paid Shytani $14,000 in cash for the planned smuggling service.  On March 16, 2024, Shytani’s co-conspirators then attempted to smuggle UC-2 and two other aliens from Canada into the United States before being apprehended and later released by Canadian law enforcement.

    The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of alien smuggling and transportation conspiracy, Shytani faces up to 10 years’ imprisonment.

    Assistant United States  Attorneys Andrew Roddin, Stephanie Pak, and Kate Mathews are in charge of the prosecution.  This case is part of Operation Take Back America, 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 other transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Project Safe Neighborhood.

    The Defendant:

    FATJON SHYTANI (also known as “Fati”)
    Age:  41
    Bronx, New York

    E.D.N.Y. Docket No. 25-CR-133 (SJB)

    MIL Security OSI –

  • MIL-OSI: SOUTHERN MISSOURI BANCORP REPORTS PRELIMINARY RESULTS FOR THIRD QUARTER OF FISCAL 2025; DECLARES QUARTERLY DIVIDEND OF $0.23 PER COMMON SHARE; CONFERENCE CALL SCHEDULED FOR TUESDAY, APRIL 22, AT 8:30 AM CENTRAL TIME

    Source: GlobeNewswire (MIL-OSI)

    Poplar Bluff, Missouri, April 21, 2025 (GLOBE NEWSWIRE) — Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the third quarter of fiscal 2025 of $15.7 million, an increase of $4.4 million or 38.7%, as compared to the same period of the prior fiscal year. The increase was attributable to increases in net interest income and noninterest income, partially offset by increases in noninterest expense, income taxes, and provision for credit losses. Preliminary net income was $1.39 per fully diluted common share for the third quarter of fiscal 2025, an increase of $0.40 as compared to the $0.99 per fully diluted common share reported for the same period of the prior fiscal year.

    Highlights for the third quarter of fiscal 2025:

    • Earnings per common share (diluted) were $1.39, up $0.40, or 40.4%, as compared to the same quarter a year ago, and up $0.09, or 6.9%, from the second 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 12.1%, as compared to 0.99% and 9.5%, respectively, in the same quarter a year ago, and 1.26% and 11.5%, respectively, in the second quarter of fiscal 2025, the linked quarter.
    • Net interest margin for the quarter was 3.39%, as compared to 3.15% reported for the same quarter a year ago, and up from 3.36% reported for the second quarter of fiscal 2025, the linked quarter. Net interest income increased $5.0 million, or 14.4%, compared to the same quarter a year ago, and increased $1.3 million, or 3.5% compared to the second quarter of fiscal 2025, the linked quarter.
    • Noninterest income was up 19.4% for the quarter, as compared to the same quarter a year ago, primarily as a result of losses realized on sale of available-for-sale (AFS) securities in the year ago quarter, and down 2.9% from the second quarter of fiscal 2025, the linked quarter.
    • Gross loan balances as of March 31, 2025, decreased by $3.5 million, or 0.1%, as compared to December 31, 2024, and increased by $252.3 million, or 6.7%, as compared to March 31, 2024.
    • Deposit balances as of March 31, 2025, increased by $50.8 million, or 1.2%, as compared to December 31, 2024, and by $275.3, million, or 6.9%, as compared to March 31, 2024.
    • Cash equivalent balances and time deposits as of March 31, 2025, increased by $81.1 million, or 55.5%, as compared to December 31, 2024, and increased by $58.4 million, or 34.6% as compared to March 31, 2024.
    • Tangible book value per share was $40.37, having increased by $4.86, or 13.7%, as compared to March 31, 2024.

    Dividend Declared:

    The Board of Directors, on April 15, 2025, declared a quarterly cash dividend on common stock of $0.23, payable May 30, 2025, to stockholders of record at the close of business on May 15, 2025, marking the 124th consecutive quarterly dividend since the inception of the Company. The Board of Directors and management believe the payment of a quarterly cash dividend enhances stockholder value and demonstrates our commitment to and confidence in our future prospects.

    Conference Call:

    The Company will host a conference call to review the information provided in this press release on Tuesday, April 22, 2025, at 8:30 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 154288. Telephone playback will be available beginning one hour following the conclusion of the call through April 27, 2025. The playback may be accessed by dialing 1-866-813-9403, and using the conference passcode 580314.

    Balance Sheet Summary:

    The Company experienced balance sheet growth in the first nine months of fiscal 2025, with total assets of $5.0 billion at March 31, 2025, reflecting an increase of $372.2 million, or 8.1%, as compared to June 30, 2024. Growth primarily reflected increases in net loans receivable, cash equivalents, and available for sale (AFS) securities.

    Cash equivalents and time deposits were a combined $227.1 million at March 31, 2025, an increase of $165.7 million, or 270.0%, as compared to June 30, 2024. The increase was primarily the result of strong deposit generation that outpaced loan growth during the period. AFS securities were $462.9 million at March 31, 2025, up $35.0 million, or 8.2%, as compared to June 30, 2024.

    Loans, net of the allowance for credit losses (ACL), were $4.0 billion at March 31, 2025, an increase of $171.3 million, or 4.5%, as compared to June 30, 2024. Gross loans increased by $173.7 million, while the ACL attributable to outstanding loan balances increased $2.4 million, or 4.6%, as compared to June 30, 2024. The increase in loan balances was attributable to growth in 1-4 family residential, commercial and industrial, construction and land development, multi-family real estate, agriculture real estate, owner occupied commercial real estate, and agricultural production loan balances. This increase was somewhat offset by decreases in consumer loans, loans secured by non-owner occupied commercial real estate, and other loan balances. The table below illustrates changes in loan balances by type over recent periods:

                                   
    Summary Loan Data as of:      Mar. 31,      Dec. 31,      Sep. 30,      June 30,      Mar. 31,
    (dollars in thousands)   2025     2024     2024     2024     2024  
                                   
    1-4 residential real estate   $ 978,908     $ 967,196     $ 942,916     $ 925,397     $ 903,371  
    Non-owner occupied commercial real estate     897,125       882,484       903,678       899,770       898,911  
    Owner occupied commercial real estate     440,282       435,392       438,030       427,476       412,958  
    Multi-family real estate     405,445       376,081       371,177       384,564       417,106  
    Construction and land development     323,499       393,388       351,481       290,541       268,315  
    Agriculture real estate     247,027       239,912       239,787       232,520       233,853  
    Total loans secured by real estate     3,292,286       3,294,453       3,247,069       3,160,268       3,134,514  
                                   
    Commercial and industrial     488,116       484,799       457,018       450,147       436,093  
    Agriculture production     186,058       188,284       200,215       175,968       139,533  
    Consumer     54,022       56,017       58,735       59,671       56,506  
    All other loans     3,216       3,628       3,699       3,981       4,799  
    Total loans     4,023,698       4,027,181       3,966,736       3,850,035       3,771,445  
                                   
    Deferred loan fees, net     (189 )     (202 )     (218 )     (232 )     (251 )
    Gross loans     4,023,509       4,026,979       3,966,518       3,849,803       3,771,194  
    Allowance for credit losses     (54,940 )     (54,740 )     (54,437 )     (52,516 )     (51,336 )
    Net loans   $ 3,968,569     $ 3,972,239     $ 3,912,081     $ 3,797,287     $ 3,719,858  

    Loans anticipated to fund in the next 90 days totaled $163.3 million at March 31, 2025, as compared to $172.5 million at December 31, 2024, and $117.2 million at March 31, 2024.

    The Bank’s concentration in non-owner occupied commercial real estate loans is estimated at 304.0% of Tier 1 capital and ACL on March 31, 2025, as compared to 317.5% as of June 30, 2024, with these loans representing 40.4% of total loans at March 31, 2025. Multi-family residential real estate, hospitality (hotels/restaurants), care facilities, retail stand-alone, and strip centers are the most common collateral types within the non-owner occupied commercial real estate loan portfolio. The multi-family residential real estate loan portfolio commonly includes loans collateralized by properties currently in the low-income housing tax credit (LIHTC) program or that have exited the program. The hospitality and retail stand-alone segments include primarily franchised businesses; care facilities consisting mainly of skilled nursing and assisted living centers; and strip centers, which can be defined as non-mall shopping centers with a variety of tenants. Non-owner-occupied office property types included 31 loans totaling $23.9 million, or 0.59% of gross loans at March 31, 2025, none of which were adversely classified, and are generally comprised of smaller spaces with diverse tenants. The Company continues to monitor its commercial real estate concentration and the individual segments closely.

    Nonperforming loans (NPL) were $22.0 million, or 0.55% of gross loans, at March 31, 2025, as compared to $6.7 million, or 0.17% of gross loans at June 30, 2024. Nonperforming assets (NPA) were $23.8 million, or 0.48% of total assets, at March 31, 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. The increase in NPLs was primarily attributable to several commercial relationships added in the third quarter of 2025 and the addition of three unrelated loans collateralized by single-family residential property in the linked quarter. The increase during the third quarter was mostly attributable to loans totaling $10 million primarily secured by two specific-purpose non-owner occupied commercial properties in different states. The loans have some guarantors in common. The properties, now vacant, were originally leased to a single tenant that became insolvent.

    Our ACL at March 31, 2025, totaled $54.9 million, representing 1.37% of gross loans and 250% 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 March 31, 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. Qualitative adjustments in the Company’s ACL model were increased compared to June 30, 2024, due to various factors that are relevant to determining expected collectability of credit. Additionally, a provision for credit loss was required due to loan net charge offs and to provide reserves for overdrafts in the third quarter of fiscal year 2025. As a percentage of average loans outstanding, the Company recorded net charge offs of 0.11% (annualized) during the current period, as compared to 0.01% for the same period of the prior fiscal year. In the three-month period ended March 31, 2025, $1.1 million of net charge offs were realized, with the increase from prior periods primarily due to a single agricultural relationship with suspected fraudulent activity.

    Total liabilities were $4.4 billion at March 31, 2025, an increase of $332.1 million, or 8.1%, as compared to June 30, 2024. Growth primarily reflected an increase in total deposits, other liabilities from the increase of accrued interest payable and income taxes payable, securities sold under agreements to repurchase, and FHLB advances.

    Deposits were $4.3 billion at March 31, 2025, an increase of $318.3 million, or 8.1%, as compared to June 30, 2024. The deposit portfolio saw year-to-date increases in certificates of deposit and savings accounts, as customers remained willing to move balances into high yield savings accounts and special rate time deposits in the higher rate environment. Public unit balances totaled $575.8 million at March 31, 2025, a decrease of $18.8 million compared to June 30, 2024, and increased $9.8 million from December 31, 2024, the linked quarter, reflecting seasonal trends. Brokered deposits totaled $235.6 million at March 31, 2025, an increase of $61.8 million as compared to June 30, 2024, but a decrease of $18.5 million compared to December 31, 2024, the linked quarter. The average loan-to-deposit ratio for the third quarter of fiscal 2025 was 94.2%, as compared to 96.3% for the quarter ended June 30, 2024, and 92.7% for the same period of the prior fiscal year. The table below illustrates changes in deposit balances by type over recent periods:

                                   
    Summary Deposit Data as of:      Mar. 31,      Dec. 31,      Sep. 30,      June 30,      Mar. 31,
    (dollars in thousands)   2025   2024   2024   2024   2024
                                   
    Non-interest bearing deposits   $ 513,418   $ 514,199   $ 503,209   $ 514,107   $ 525,959
    NOW accounts     1,167,296     1,211,402     1,128,917     1,239,663     1,300,358
    MMDAs – non-brokered     345,810     347,271     320,252     334,774     359,569
    Brokered MMDAs     2,013     3,018     12,058     2,025     10,084
    Savings accounts     626,175     573,291     556,030     517,084     455,212
    Total nonmaturity deposits     2,654,712     2,649,181     2,520,466     2,607,653     2,651,182
                                   
    Certificates of deposit – non-brokered     1,373,109     1,310,421     1,258,583     1,163,650     1,158,063
    Brokered certificates of deposit     233,561     251,025     261,093     171,756     176,867
    Total certificates of deposit     1,606,670     1,561,446     1,519,676     1,335,406     1,334,930
                                   
    Total deposits   $ 4,261,382   $ 4,210,627   $ 4,040,142   $ 3,943,059   $ 3,986,112
                                   
    Public unit nonmaturity accounts   $ 472,010   $ 482,406   $ 447,638   $ 541,445   $ 572,631
    Public unit certificates of deposit     103,741     83,506     62,882     53,144     51,834
    Total public unit deposits   $ 575,751   $ 565,912   $ 510,520   $ 594,589   $ 624,465

    FHLB advances were $104.1 million at March 31, 2025, an increase of $2.0 million, or 2.0%, as compared to June 30, 2024.

    The Company’s stockholders’ equity was $528.8 million at March 31, 2025, an increase of $40.0 million, or 8.2%, as compared to June 30, 2024. The increase was attributable primarily to earnings retained after cash dividends paid, in combination with a $3.5 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 $14.0 million at March 31, 2025, compared $17.5 million at June 30, 2024. The Company does not hold any securities classified as held-to-maturity.    

    Quarterly Income Statement Summary:

    The Company’s net interest income for the three-month period ended March 31, 2025, was $39.5 million, an increase of $5.0 million, or 14.4%, as compared to the same period of the prior fiscal year. The increase was attributable to a 6.2% 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 24 basis points in the net interest margin, from 3.15% to 3.39%. The primary driver of the net interest margin expansion, compared to the year ago period, was the yield on interest earning assets increasing 16 basis points, while the cost of interest bearing liabilities decreased 11 basis points.

    Loan discount accretion and deposit premium amortization related to the Company’s 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 $1.5 million in net interest income for the three-month period ended March 31, 2025, as compared to $1.2 million in net interest income for the same period a year ago. Combined, this component of net interest income contributed 13 basis points to net interest margin in the three-month period ended March 31, 2025, as compared to an 11-basis point contribution for the same period of the prior fiscal year, and as compared to a nine-basis point contribution in the linked quarter, ended December 31, 2024, when net interest margin was 3.36%.

    The Company recorded a PCL of $932,000 in the three-month period ended March 31, 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 $1.3 million provision attributable to the ACL for loan balances outstanding and a $368,000 negative provision attributable to the allowance for off-balance sheet credit exposures.

    The Company’s noninterest income for the three-month period ended March 31, 2025, was $6.7 million, an increase of $1.1 million, or 19.4%, as compared to the same period of the prior fiscal year. The increase was primarily attributable to recognized losses on the sale of AFS securities, which totaled $807,000 in the comparable quarter, as compared to a small gain recognized in the current quarter. Additionally, deposit account charges and related fees increased, partially offset by decreases in loan late charges and loan servicing fees.

    Noninterest expense for the three-month period ended March 31, 2025, was $25.4 million, an increase of $342,000, or 1.4%, 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 other noninterest expense, occupancy and equipment, and legal and professional fees. The increase in other noninterest expense was primarily due to card fraud losses and deposit product expenses. Occupancy and equipment expenses increased due to depreciation on recent capitalized expenditures, including buildings, equipment, and signage. In addition, higher maintenance costs and service agreements were experienced. Lastly, legal and professional fees were elevated due primarily to an increase in accruals for audit expenses and the remaining expenses associated with the performance improvement project. Partially offsetting these increases from the prior year period were decreases in in telecommunication expenses; intangible amortization, as the core deposit intangible recognized in an older merger was fully amortized in the second quarter of fiscal 2025; and advertising expenses.

    The efficiency ratio for the three-month period ended March 31, 2025, was 55.1%, as compared to 61.2% in the same period of the prior fiscal year. The improvement was attributable to net interest income and noninterest income growing faster than operating expenses.

    The income tax provision for the three-month period ended March 31, 2025, was $4.1 million, an increase of 45.9% as compared to the same period of the prior fiscal year, primarily due to the increase in net income before income taxes. The effective tax rate was 20.9% as compared to 20.1% in the same quarter of the prior fiscal year.  

    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:      Mar. 31,      Dec. 31,      Sep. 30,      June 30,      Mar. 31,  
    (dollars in thousands, except per share data)   2025   2024   2024   2024   2024  
                                     
    Cash equivalents and time deposits   $ 227,136   $ 146,078   $ 75,591   $ 61,395   $ 168,763  
    Available for sale (AFS) securities     462,930     468,060     420,209     427,903     433,689  
    FHLB/FRB membership stock     18,269     18,099     18,064     17,802     17,734  
    Loans receivable, gross     4,023,509     4,026,979     3,966,518     3,849,803     3,771,194  
    Allowance for credit losses     54,940     54,740     54,437     52,516     51,336  
    Loans receivable, net     3,968,569     3,972,239     3,912,081     3,797,287     3,719,858  
    Bank-owned life insurance     75,156     74,643     74,119     73,601     73,101  
    Intangible assets     74,677     75,399     76,340     77,232     78,049  
    Premises and equipment     95,987     96,418     96,087     95,952     95,801  
    Other assets     53,772     56,738     56,709     53,144     59,997  
    Total assets   $ 4,976,496   $ 4,907,674   $ 4,729,200   $ 4,604,316   $ 4,646,992  
                                     
    Interest-bearing deposits   $ 3,747,964   $ 3,696,428   $ 3,536,933   $ 3,428,952   $ 3,437,420  
    Noninterest-bearing deposits     513,418     514,199     503,209     514,107     548,692  
    Securities sold under agreements to repurchase     15,000     15,000     15,000     9,398     9,398  
    FHLB advances     104,072     107,070     107,069     102,050     102,043  
    Other liabilities     44,057     39,424     38,191     37,905     46,712  
    Subordinated debt     23,195     23,182     23,169     23,156     23,143  
    Total liabilities     4,447,706     4,395,303     4,223,571     4,115,568     4,167,408  
                                     
    Total stockholders’ equity     528,790     512,371     505,629     488,748     479,584  
                                     
    Total liabilities and stockholders’ equity   $ 4,976,496   $ 4,907,674   $ 4,729,200   $ 4,604,316   $ 4,646,992  
                                     
    Equity to assets ratio     10.63 %     10.44 %     10.69 %     10.61 %     10.32 %
                                     
    Common shares outstanding     11,299,962     11,277,167     11,277,167     11,277,737     11,366,094  
    Less: Restricted common shares not vested     50,658     46,653     56,553     57,956     57,956  
    Common shares for book value determination     11,249,304     11,230,514     11,220,614     11,219,781     11,308,138  
                                     
    Book value per common share   $ 47.01   $ 45.62   $ 45.06   $ 43.56   $ 42.41  
    Less: Intangible assets per common share     6.64     6.71     6.80     6.88     6.90  
    Tangible book value per common share (1)     40.37     38.91     38.26     36.68     35.51  
    Closing market price     52.02     57.37     56.49     45.01     43.71  

    (1)   Non-GAAP financial measure.

                                     
    Nonperforming asset data as of:      Mar. 31,      Dec. 31,      Sep. 30,      June 30,      Mar. 31,  
    (dollars in thousands)   2025   2024   2024   2024   2024  
                                     
    Nonaccrual loans   $ 21,970   $ 8,309   $ 8,206   $ 6,680   $ 7,329  
    Accruing loans 90 days or more past due     —     —     —     —     81  
    Total nonperforming loans     21,970     8,309     8,206     6,680     7,410  
    Other real estate owned (OREO)     1,775     2,423     3,842     3,865     3,791  
    Personal property repossessed     56     37     21     23     60  
    Total nonperforming assets   $ 23,801   $ 10,769   $ 12,069   $ 10,568   $ 11,261  
                                     
    Total nonperforming assets to total assets     0.48 %     0.22 %     0.26 %     0.23 %     0.24 %  
    Total nonperforming loans to gross loans     0.55 %     0.21 %     0.21 %     0.17 %     0.20 %  
    Allowance for credit losses to nonperforming loans     250.07 %     658.80 %     663.38 %     786.17 %     692.79 %  
    Allowance for credit losses to gross loans     1.37 %     1.36 %     1.37 %     1.36 %     1.36 %  
                                     
    Performing modifications to borrowers experiencing financial difficulty   $ 23,304   $ 24,083   $ 24,340   $ 24,602   $ 24,848  
                                   
        For the three-month period ended
    Quarterly Summary Income Statement Data:   Mar. 31,      Dec. 31,      Sep. 30,      June 30,      Mar. 31,
    (dollars in thousands, except per share data)      2025   2024   2024   2024   2024  
                                   
    Interest income:                                   
    Cash equivalents   $ 1,585   $ 784   $ 78   $ 541   $ 2,587  
    AFS securities and membership stock     5,684     5,558     5,547     5,677     5,486  
    Loans receivable     62,656     63,082     61,753     58,449     55,952  
    Total interest income     69,925     69,424     67,378     64,667     64,025  
    Interest expense:                              
    Deposits     28,795     29,538     28,796     27,999     27,893  
    Securities sold under agreements to repurchase     189     226     160     125     128  
    FHLB advances     1,076     1,099     1,326     1,015     1,060  
    Subordinated debt     386     418     435     433     435  
    Total interest expense     30,446     31,281     30,717     29,572     29,516  
    Net interest income     39,479     38,143     36,661     35,095     34,509  
    Provision for credit losses     932     932     2,159     900     900  
    Noninterest income:                              
    Deposit account charges and related fees     2,048     2,237     2,184     1,978     1,847  
    Bank card interchange income     1,341     1,301     1,499     1,770     1,301  
    Loan late charges     —     —     —     170     150  
    Loan servicing fees     224     232     286     494     267  
    Other loan fees     843     944     1,063     617     757  
    Net realized gains on sale of loans     114     133     361     97     99  
    Net realized gains (losses) on sale of AFS securities     48     —     —     —     (807 )
    Earnings on bank owned life insurance     512     522     517     498     483  
    Insurance brokerage commissions     340     300     287     331     312  
    Wealth management fees     902     843     730     838     866  
    Other noninterest income     294     353     247     974     309  
    Total noninterest income     6,666     6,865     7,174     7,767     5,584  
    Noninterest expense:                              
    Compensation and benefits     13,771     13,737     14,397     13,894     13,750  
    Occupancy and equipment, net     3,869     3,585     3,689     3,790     3,623  
    Data processing expense     2,359     2,224     2,171     1,929     2,349  
    Telecommunications expense     330     354     428     468     464  
    Deposit insurance premiums     674     588     472     638     677  
    Legal and professional fees     603     619     1,208     516     412  
    Advertising     530     442     546     640     622  
    Postage and office supplies     350     283     306     308     344  
    Intangible amortization     889     897     897     1,018     1,018  
    Foreclosed property expenses     37     73     12     52     60  
    Other noninterest expense     1,979     2,074     1,715     1,749     1,730  
    Total noninterest expense     25,391     24,876     25,841     25,002     25,049  
    Net income before income taxes     19,822     19,200     15,835     16,960     14,144  
    Income taxes     4,139     4,547     3,377     3,430     2,837  
    Net income     15,683     14,653     12,458     13,530     11,307  
    Less: Distributed and undistributed earnings allocated                              
    to participating securities     71     61     62     69     58  
    Net income available to common shareholders   $ 15,612   $ 14,592   $ 12,396   $ 13,461   $ 11,249  
                                   
    Basic earnings per common share   $ 1.39   $ 1.30   $ 1.10   $ 1.19   $ 1.00  
    Diluted earnings per common share     1.39     1.30     1.10     1.19     0.99  
    Dividends per common share     0.23     0.23     0.23     0.21     0.21  
    Average common shares outstanding:                              
    Basic     11,238,000     11,231,000     11,221,000     11,276,000     11,302,000  
    Diluted     11,262,000     11,260,000     11,240,000     11,283,000     11,313,000  
                                     
        For the three-month period ended  
    Quarterly Average Balance Sheet Data:   Mar. 31,      Dec. 31,      Sep. 30,      June 30,      Mar. 31,  
    (dollars in thousands)      2025   2024   2024   2024   2024  
                                     
    Interest-bearing cash equivalents   $ 143,206   $ 64,976   $ 5,547   $ 39,432   $ 182,427  
    AFS securities and membership stock     508,642     479,633     460,187     476,198     472,904  
    Loans receivable, gross     4,003,552     3,989,643     3,889,740     3,809,209     3,726,631  
    Total interest-earning assets     4,655,400     4,534,252     4,355,474     4,324,839     4,381,962  
    Other assets     290,739     291,217     283,056     285,956     291,591  
    Total assets   $ 4,946,139   $ 4,825,469   $ 4,638,530   $ 4,610,795   $ 4,673,553  
                                     
    Interest-bearing deposits   $ 3,737,849   $ 3,615,767   $ 3,416,752   $ 3,417,360   $ 3,488,104  
    Securities sold under agreements to repurchase     15,000     15,000     12,321     9,398     9,398  
    FHLB advances     106,187     107,054     123,723     102,757     111,830  
    Subordinated debt     23,189     23,175     23,162     23,149     23,137  
    Total interest-bearing liabilities     3,882,225     3,760,996     3,575,958     3,552,664     3,632,469  
    Noninterest-bearing deposits     513,157     524,878     531,946     539,637     532,075  
    Other noninterest-bearing liabilities     31,282     31,442     33,737     35,198     33,902  
    Total liabilities     4,426,664     4,317,316     4,141,641     4,127,499     4,198,446  
                                     
    Total stockholders’ equity     519,475     508,153     496,889     483,296     475,107  
                                     
    Total liabilities and stockholders’ equity   $ 4,946,139   $ 4,825,469   $ 4,638,530   $ 4,610,795   $ 4,673,553  
                                     
    Return on average assets     1.27 %     1.21 %     1.07 %     1.17 %     0.97 %
    Return on average common stockholders’ equity     12.1 %     11.5 %     10.0 %     11.2 %     9.5 %
                                     
    Net interest margin     3.39 %     3.36 %     3.37 %     3.25 %     3.15 %
    Net interest spread     2.87 %     2.79 %     2.75 %     2.65 %     2.59 %
                                     
    Efficiency ratio     55.1 %     55.3 %     59.0 %     58.3 %     61.2 %

    The MIL Network –

  • MIL-OSI: Wintrust Financial Corporation Reports Record First Quarter 2025 Net Income

    Source: GlobeNewswire (MIL-OSI)

    ROSEMONT, Ill., April 21, 2025 (GLOBE NEWSWIRE) — Wintrust Financial Corporation (“Wintrust”, “the Company”, “we” or “our”) (Nasdaq: WTFC) announced record quarterly net income of $189.0 million, or $2.69 per diluted common share, for the first quarter of 2025, compared to net income of $185.4 million, or $2.63 per diluted common share in the fourth quarter of 2024. Pre-tax, pre-provision income (non-GAAP) totaled a record $277.0 million, compared to $270.1 million for the fourth quarter of 2024.

    Timothy S. Crane, President and Chief Executive Officer, commented, “Building on our record results in 2024, we are pleased with our strong start to the year. Our balanced business model supported disciplined loan growth, which was funded by robust deposit growth in the first quarter of 2025.”

    Additionally, Mr. Crane noted, “Net interest margin in the first quarter increased by five basis points to 3.56% compared to the fourth quarter of 2024. The improvement in net interest margin was primarily attributed to decreased funding costs. The higher net interest margin and balance sheet growth supported record net interest income levels in the first quarter of 2025.”

    Highlights of the first quarter of 2025:
    Comparative information to the fourth quarter of 2024, unless otherwise noted

    • Total loans increased by $653 million, or 6% annualized.
    • Total deposits increased by approximately $1.1 billion, or 8% annualized.
    • Total assets increased by $1.0 billion, or 6% annualized.
    • Net interest income increased to $526.5 million in the first quarter of 2025, compared to $525.1 million in the fourth quarter of 2024, supported by improvement in net interest margin and balance sheet growth.        
      • Net interest margin increased to 3.54% (3.56% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2025.
    • Non-interest income and non-interest expense were relatively stable in the first quarter of 2025. Notable impacts were:
      • Net gains on investment securities totaled $3.2 million.
      • Macatawa Bank acquisition-related costs were $2.7 million.
    • Provision for credit losses totaled $24.0 million in the first quarter of 2025, as compared to a provision for credit losses of $17.0 million in the fourth quarter of 2024.
    • Net charge-offs totaled $12.6 million, or 11 basis points of average total loans on an annualized basis, in the first quarter of 2025 compared to $15.9 million, or 13 basis points of average total loans on an annualized basis, in the fourth quarter of 2024.

    Mr. Crane noted, “The Company exhibited disciplined and consistent loan growth, as loans increased by $653 million compared to the prior quarter, or 6% on an annualized basis. Loan pipelines are strong and we remain prudent in our review of credit opportunities, ensuring our loan growth adheres to our conservative credit standards. Strong deposit growth of $1.1 billion, or 8% on an annualized basis, in the first quarter of 2025 outpaced loan growth, which resulted in our loans-to-deposits ratio ending the quarter at 90.9%. Non-interest bearing deposits totaled $11.2 billion and comprised 21% of total deposits at the end of the first quarter of 2025. We continue to leverage our enviable market positioning to generate deposits, grow loans and expand our franchise value.”

    Commenting on credit quality, Mr. Crane stated, “Prudent credit management, involving in-depth reviews of the portfolio, has led to positive outcomes by proactively identifying and resolving problem credits in a timely fashion. We continue to be conservative, diversified, and maintain our consistently strong credit standards. We believe the Company’s reserves are appropriate and we remain committed to maintaining credit quality as evidenced by our improved net charge-offs, stable levels of non-performing loans and our core loan allowance for credit losses of 1.37%.”

    In summary, Mr. Crane concluded, “Overall, we are proud of our first quarter results and believe we are well-positioned to continue our strong momentum as we navigate the macroeconomic uncertainty in 2025. The first quarter results highlighted the quality of our core deposit franchise and multifaceted nature of our business model, which uniquely positions us to be successful. Anticipated solid loan growth in the second quarter, combined with a stable net interest margin should result in higher levels of net interest income in the second quarter of 2025. Increasing our long-term franchise value and net interest income, coupled with disciplined expense control and maintaining our conservative credit standards, remain our focus in 2025.”

    The graphs shown on pages 3-7 illustrate certain financial highlights of the first quarter of 2025 as well as historical financial performance. See “Supplemental Non-GAAP Financial Measures/Ratios” at Table 17 for additional information with respect to non-GAAP financial measures/ratios, including the reconciliations to the corresponding GAAP financial measures/ratios.

    Graphs available at the following link: http://ml.globenewswire.com/Resource/Download/cdbdc506-1b5a-4776-ae2e-e0b14106e712

    SUMMARY OF RESULTS:

    BALANCE SHEET

    Total assets increased $1.0 billion in the first quarter of 2025 as compared to the fourth quarter of 2024. Total loans increased by $653.4 million as compared to the fourth quarter of 2024. The increase in loans was primarily driven by growth in the commercial and premium finance life insurance loan portfolios.

    Total liabilities increased by $734.2 million in the first quarter of 2025 as compared to the fourth quarter of 2024, driven by a $1.1 billion increase in total deposits. Robust organic deposit growth in the first quarter of 2025 was driven by our diverse deposit product offerings. Non-interest bearing deposits as a percentage of total deposits were 21% at March 31, 2025, relatively stable compared to recent quarters. The Company’s loans-to-deposits ratio ended the quarter at 90.9%.

    For more information regarding changes in the Company’s balance sheet, see Consolidated Statements of Condition and Table 1 through Table 3 in this report.

    NET INTEREST INCOME

    For the first quarter of 2025, net interest income totaled $526.5 million, an increase of $1.3 million as compared to the fourth quarter of 2024, primarily due to improvement in net interest margin and growth in the balance sheet, partially offset by two fewer calendar days in the quarter.

    Net interest margin increased to 3.54% (3.56% on a fully taxable-equivalent basis, non-GAAP) during the first quarter of 2025, up five basis points compared to the fourth quarter of 2024. The yield on earning assets declined 11 basis points during the first quarter of 2025 primarily due to a 15 basis point decrease in loan yields. The net free funds contribution declined six basis points compared to the fourth quarter of 2024. These declines were more than offset by a 22 basis point reduction in funding cost, primarily due to a 23 basis point decline in the rate paid on interest-bearing deposits, compared to the fourth quarter of 2024.

    For more information regarding net interest income, see Table 4 through Table 7 in this report.

    ASSET QUALITY

    The allowance for credit losses totaled $448.4 million as of March 31, 2025, an increase from $437.1 million as of December 31, 2024. A provision for credit losses totaling $24.0 million was recorded for the first quarter of 2025 as compared to $17.0 million recorded in the fourth quarter of 2024. The higher provision for credit losses recognized in the first quarter of 2025 is primarily attributable to impacts related to the macroeconomic outlook. Future economic performance remains uncertain, thus downside risks to the baseline scenario, including widening credit spreads and lower valuations in financial markets, were considered to derive a qualitative addition to the provision for the first quarter of 2025. For more information regarding the allowance for credit losses and provision for credit losses, see Table 10 in this report.

    Management believes the allowance for credit losses is appropriate to account for expected credit losses. The Company is required to estimate expected credit losses over the life of the Company’s financial assets as of the reporting date. There can be no assurances, however, that future losses will not significantly exceed the amounts provided for, thereby affecting future results of operations. A summary of the allowance for credit losses calculated for the loan components in each portfolio as of March 31, 2025, December 31, 2024, and September 30, 2024 is shown on Table 11 of this report.

    Net charge-offs totaled $12.6 million in the first quarter of 2025, a decrease of $3.3 million as compared to $15.9 million of net charge-offs in the fourth quarter of 2024. Net charge-offs as a percentage of average total loans were 11 basis points in the first quarter of 2025 on an annualized basis, compared to 13 basis points on an annualized basis in the fourth quarter of 2024. For more information regarding net charge-offs, see Table 9 in this report.

    The Company’s delinquency rates remain low and manageable. For more information regarding past due loans, see Table 12 in this report.

    Non-performing assets and non-performing loans have remained relatively stable compared to prior quarters. Non-performing assets totaled $195.0 million and comprised 0.30% of total assets as of March 31, 2025, as compared to $193.9 million, or 0.30% of total assets, as of December 31, 2024. Non-performing loans totaled $172.4 million and comprised 0.35% of total loans at March 31, 2025, as compared to $170.8 million and 0.36% of total loans at December 31, 2024. For more information regarding non-performing assets, see Table 13 in this report.

    NON-INTEREST INCOME

    Non-interest income totaled $116.6 million in the first quarter of 2025, increasing $3.2 million, as compared to $113.5 million in the fourth quarter of 2024.

    Wealth management revenue decreased by $4.7 million in the first quarter of 2025, as compared to the fourth quarter of 2024. Revenue in the first quarter of 2025 was impacted by the transition of systems and support for brokerage and certain private client business to a new third party in the current quarter, as well as lower assets under management due to lower market valuations. The reduction in revenue was driven by anticipated slowdown in activity from the transition, market conditions, and certain offsets to expenses. Wealth management revenue is comprised of the trust and asset management revenue of Wintrust Private Trust Company and Great Lakes Advisors, the brokerage commissions, managed money fees and insurance product commissions at Wintrust Investments and fees from tax-deferred like-kind exchange services provided by the Chicago Deferred Exchange Company.

    Mortgage banking revenue totaling $20.5 million in the first quarter of 2025 was essentially unchanged compared to the fourth quarter of 2024. For more information regarding mortgage banking revenue, see Table 15 in this report.

    The Company recognized $19.4 million in service charges on deposit accounts in the first quarter of 2025, as compared to $18.9 million in the fourth quarter of 2024. The $0.5 million increase in the first quarter of 2025 was primarily due to increased commercial account fees.

    The Company recognized $3.2 million in net gains on investment securities in the first quarter of 2025 as compared to $2.8 million in net losses in the fourth quarter of 2024. The net gains in the first quarter of 2025 were primarily the result of unrealized gains on the Company’s equity investment securities with a readily determinable fair value.

    For more information regarding non-interest income, see Table 14 in this report.

    NON-INTEREST EXPENSE

    Non-interest expenses totaled $366.1 million in the first quarter of 2025, decreasing $2.4 million as compared to $368.5 million in the fourth quarter of 2024.

    Salaries and employee benefits expense decreased by $0.6 million in the first quarter of 2025 as compared to the fourth quarter of 2024. This was primarily driven by decreased commissions and incentives compensation expense related to lower mortgage originations and wealth management revenue in the quarter partially offset by higher salaries expense which can be attributed to annual merit increases taking effect in the first quarter of the year.

    Advertising and marketing expenses in the first quarter of 2025 totaled $12.3 million, which was a $0.8 million decrease as compared to the fourth quarter of 2024. The reduction in the first quarter is primarily due to timing of marketing campaigns, sponsorship arrangements and other investments.

    Professional fees expense totaled $9.0 million in the first quarter of 2025, resulting in a decrease of $2.3 million as compared to the fourth quarter of 2024. The decrease in the current quarter relates primarily to decreased fees on consulting services. Professional fees include legal, audit, and tax fees, external loan review costs, consulting arrangements and normal regulatory exam assessments.

    Travel and entertainment expense totaled $5.3 million in the first quarter of 2025 which decreased $2.9 million as compared to the fourth quarter of 2024. The decrease is primarily due to seasonal corporate events that occur during the fourth quarter.

    The Macatawa Bank acquisition related costs were $2.7 million in the first quarter of 2025, primarily driven by consulting expenses, employee retention and severance costs, and contracted resource costs.

    For more information regarding non-interest expense, see Table 16 in this report.

    INCOME TAXES

    The Company recorded income tax expense of $64.0 million in the first quarter compared to $67.7 million in the fourth quarter of 2024. The effective tax rates were 25.30% in the first quarter of 2025 compared to 26.76% in the fourth quarter of 2024. The effective tax rates were partially impacted by the tax effects related to share-based compensation, which fluctuate based on the Company’s stock price and timing of employee stock option exercises and vesting of other share-based awards. The Company recorded net excess tax benefits of $3.7 million in the first quarter of 2025, compared to excess tax benefits of $50,000 in the fourth quarter of 2024 related to share-based compensation.

    BUSINESS SUMMARY

    Community Banking

    Through community banking, the Company provides banking and financial services primarily to individuals, small to mid-sized businesses, local governmental units and institutional clients residing primarily in the local areas the Company services. In the first quarter of 2025, community banking increased its commercial, commercial real estate and residential real estate loan portfolios.

    Mortgage banking revenue was $20.5 million for both the first quarter of 2025, and the fourth quarter of 2024. See Table 15 for more detail. Service charges on deposit accounts totaled $19.4 million in the first quarter of 2025 as compared to $18.9 million in the fourth quarter of 2024. The Company’s gross commercial and commercial real estate loan pipelines remained solid as of March 31, 2025 indicating momentum for expected continued loan growth in the second quarter of 2025.

    Specialty Finance

    Through specialty finance, the Company offers financing of insurance premiums for businesses and individuals, equipment financing through structured loans and lease products to customers in a variety of industries, accounts receivable financing and value-added, out-sourced administrative services and other services. Originations within the insurance premium financing receivables portfolios were $4.8 billion during the first quarter of 2025. Average balances increased by $213.4 million, as compared to the fourth quarter of 2024. The Company’s leasing divisions’ portfolio balances increased in the first quarter of 2025, with capital leases, loans, and equipment on operating leases of $2.7 billion, $1.1 billion, and $280.5 million as of March 31, 2025 respectively, as compared to $2.5 billion, $1.1 billion, and $278.3 million as of December 31, 2024, respectively. Revenues from the Company’s out-sourced administrative services business were $1.4 million in the first quarter of 2025, which was relatively stable compared to the fourth quarter of 2024.

    Wealth Management

    Through wealth management, the Company offers a full range of wealth management services, including trust and investment services, tax-deferred like-kind exchange services, asset management, and securities brokerage services. See “Items Impacting Comparative Results,” regarding the sale of the Company’s Retirement Benefits Advisors (“RBA”) division during the first quarter of 2024. Wealth management revenue totaled $34.0 million in the first quarter of 2025, down slightly as compared to the fourth quarter of 2024. At March 31, 2025, the Company’s wealth management subsidiaries had approximately $51.1 billion of assets under administration, which included $8.4 billion of assets owned by the Company and its subsidiary banks.

    ITEMS IMPACTING COMPARATIVE FINANCIAL RESULTS

    Business Combination

    On August 1, 2024, the Company completed its previously announced acquisition of Macatawa, the parent company of Macatawa Bank. In conjunction with the completed acquisition, the Company issued approximately 4.7 million shares of common stock. Macatawa operates 26 full-service branches located throughout communities in Kent, Ottawa and northern Allegan counties in the state of Michigan. Macatawa offers a full range of banking, retail and commercial lending, wealth management and ecommerce services to individuals, businesses and governmental entities. As of August 1, 2024, Macatawa had fair values of approximately $2.9 billion in assets, $2.3 billion in deposits and $1.3 billion in loans. As of March 31, 2025, the Company recorded goodwill of approximately $142.1 million on the purchase.

    Division Sale

    In the first quarter of 2024, the Company sold its RBA division and recorded a net gain of approximately $19.3 million ($20.0 million in other non-interest income from the sale, offset by $0.7 million in commissions/incentive compensation expense).

    WINTRUST FINANCIAL CORPORATION
    Key Operating Measures

    Wintrust’s key operating measures and growth rates for the first quarter of 2025, as compared to the fourth quarter of 2024 (sequential quarter) and first quarter of 2024 (linked quarter), are shown in the table below:

                  % or (1)basis point (bp) change  from
    4th Quarter
    2024    		   % or basis point (bp) change from
    1st Quarter
    2024
        Three Months Ended  
    (Dollars in thousands, except per share data)   Mar 31, 2025   Dec 31, 2024   Mar 31, 2024  
    Net income   $ 189,039     $ 185,362     $ 187,294   2   %   1   %
    Pre-tax income, excluding provision for credit losses (non-GAAP) (2)     277,018       270,060       271,629   3       2    
    Net income per common share – Diluted     2.69       2.63       2.89   2       (7 )  
    Cash dividends declared per common share     0.50       0.45       0.45   11       11    
    Net revenue (3)     643,108       638,599       604,774   1       6    
    Net interest income     526,474       525,148       464,194   0       13    
    Net interest margin     3.54 %     3.49 %     3.57 % 5   bps   (3 ) bps
    Net interest margin – fully taxable-equivalent (non-GAAP) (2)     3.56       3.51       3.59   5       (3 )  
    Net overhead ratio (4)     1.58       1.60       1.39   (2 )     19    
    Return on average assets     1.20       1.16       1.35   4       (15 )  
    Return on average common equity     12.21       11.82       14.42   39       (221 )  
    Return on average tangible common equity (non-GAAP) (2)     14.72       14.29       16.75   43       (203 )  
    At end of period                      
    Total assets   $ 65,870,066     $ 64,879,668     $ 57,576,933   6   %   14   %
    Total loans (5)     48,708,390       48,055,037       43,230,706   6       13    
    Total deposits     53,570,038       52,512,349       46,448,858   8       15    
    Total shareholders’ equity     6,600,537       6,344,297       5,436,400   16       21    

    (1)   Period-end balance sheet percentage changes are annualized.
    (2)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
    (3)   Net revenue is net interest income plus non-interest income.
    (4)   The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
    (5)   Excludes mortgage loans held-for-sale.

    Certain returns, yields, performance ratios, or quarterly growth rates are “annualized” in this presentation to represent an annual time period. This is done for analytical purposes to better discern, for decision-making purposes, underlying performance trends when compared to full-year or year-over-year amounts. For example, a 5% growth rate for a quarter would represent an annualized 20% growth rate. Additional supplemental financial information showing quarterly trends can be found on the Company’s website at www.wintrust.com by choosing “Financial Reports” under the “Investor Relations” heading, and then choosing “Financial Highlights.”


    WINTRUST FINANCIAL CORPORATION
    Selected Financial Highlights

        Three Months Ended
    (Dollars in thousands, except per share data)   Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024
    Selected Financial Condition Data (at end of period):
    Total assets   $ 65,870,066     $ 64,879,668     $ 63,788,424     $ 59,781,516     $ 57,576,933  
    Total loans (1)     48,708,390       48,055,037       47,067,447       44,675,531       43,230,706  
    Total deposits     53,570,038       52,512,349       51,404,966       48,049,026       46,448,858  
    Total shareholders’ equity     6,600,537       6,344,297       6,399,714       5,536,628       5,436,400  
    Selected Statements of Income Data:                    
    Net interest income   $ 526,474     $ 525,148     $ 502,583     $ 470,610     $ 464,194  
    Net revenue (2)     643,108       638,599       615,730       591,757       604,774  
    Net income     189,039       185,362       170,001       152,388       187,294  
    Pre-tax income, excluding provision for credit losses (non-GAAP) (3)     277,018       270,060       255,043       251,404       271,629  
    Net income per common share – Basic     2.73       2.68       2.51       2.35       2.93  
    Net income per common share – Diluted     2.69       2.63       2.47       2.32       2.89  
    Cash dividends declared per common share     0.50       0.45       0.45       0.45       0.45  
    Selected Financial Ratios and Other Data:                    
    Performance Ratios:                    
    Net interest margin     3.54 %     3.49 %     3.49 %     3.50 %     3.57 %
    Net interest margin – fully taxable-equivalent (non-GAAP) (3)     3.56       3.51       3.51       3.52       3.59  
    Non-interest income to average assets     0.74       0.71       0.74       0.85       1.02  
    Non-interest expense to average assets     2.32       2.31       2.36       2.38       2.41  
    Net overhead ratio (4)     1.58       1.60       1.62       1.53       1.39  
    Return on average assets     1.20       1.16       1.11       1.07       1.35  
    Return on average common equity     12.21       11.82       11.63       11.61       14.42  
    Return on average tangible common equity (non-GAAP) (3)     14.72       14.29       13.92       13.49       16.75  
    Average total assets   $ 64,107,042     $ 63,594,105     $ 60,915,283     $ 57,493,184     $ 55,602,695  
    Average total shareholders’ equity     6,460,941       6,418,403       5,990,429       5,450,173       5,440,457  
    Average loans to average deposits ratio     92.3 %     91.9 %     93.8 %     95.1 %     94.5 %
    Period-end loans to deposits ratio     90.9       91.5       91.6       93.0       93.1  
    Common Share Data at end of period:                    
    Market price per common share   $ 112.46     $ 124.71     $ 108.53     $ 98.56     $ 104.39  
    Book value per common share     92.47       89.21       90.06       82.97       81.38  
    Tangible book value per common share (non-GAAP) (3)     78.83       75.39       76.15       72.01       70.40  
    Common shares outstanding     66,919,325       66,495,227       66,481,543       61,760,139       61,736,715  
    Other Data at end of period:                    
    Common equity to assets ratio     9.4 %     9.1 %     9.4 %     8.6 %     8.7 %
    Tangible common equity ratio (non-GAAP) (3)     8.1       7.8       8.1       7.5       7.6  
    Tier 1 leverage ratio (5)     9.6       9.4       9.6       9.3       9.4  
    Risk-based capital ratios:                    
    Tier 1 capital ratio (5)     10.8       10.7       10.6       10.3       10.3  
    Common equity tier 1 capital ratio (5)     10.1       9.9       9.8       9.5       9.5  
    Total capital ratio (5)     12.5       12.3       12.2       12.1       12.2  
    Allowance for credit losses (6)   $ 448,387     $ 437,060     $ 436,193     $ 437,560     $ 427,504  
    Allowance for loan and unfunded lending-related commitment losses to total loans     0.92 %     0.91 %     0.93 %     0.98 %     0.99 %
    Number of:                    
    Bank subsidiaries     16       16       16       15       15  
    Banking offices     208       205       203       177       176  

    (1)   Excludes mortgage loans held-for-sale.
    (2)   Net revenue is net interest income plus non-interest income.
    (3)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
    (4)   The net overhead ratio is calculated by netting total non-interest expense and total non-interest income, annualizing this amount, and dividing by that period’s average total assets. A lower ratio indicates a higher degree of efficiency.
    (5)   Capital ratios for current quarter-end are estimated.
    (6)   The allowance for credit losses includes the allowance for loan losses, the allowance for unfunded lending-related commitments and the allowance for held-to-maturity securities losses.


    WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF CONDITION

        (Unaudited)       (Unaudited)   (Unaudited)   (Unaudited)
        Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (In thousands)     2025       2024       2024       2024       2024  
    Assets                    
    Cash and due from banks   $ 616,216     $ 452,017     $ 725,465     $ 415,462     $ 379,825  
    Federal funds sold and securities purchased under resale agreements     63       6,519       5,663       62       61  
    Interest-bearing deposits with banks     4,238,237       4,409,753       3,648,117       2,824,314       2,131,077  
    Available-for-sale securities, at fair value     4,220,305       4,141,482       3,912,232       4,329,957       4,387,598  
    Held-to-maturity securities, at amortized cost     3,564,490       3,613,263       3,677,420       3,755,924       3,810,015  
    Trading account securities     —       4,072       3,472       4,134       2,184  
    Equity securities with readily determinable fair value     270,442       215,412       125,310       112,173       119,777  
    Federal Home Loan Bank and Federal Reserve Bank stock     281,893       281,407       266,908       256,495       224,657  
    Brokerage customer receivables     —       18,102       16,662       13,682       13,382  
    Mortgage loans held-for-sale, at fair value     316,804       331,261       461,067       411,851       339,884  
    Loans, net of unearned income     48,708,390       48,055,037       47,067,447       44,675,531       43,230,706  
    Allowance for loan losses     (378,207 )     (364,017 )     (360,279 )     (363,719 )     (348,612 )
    Net loans     48,330,183       47,691,020       46,707,168       44,311,812       42,882,094  
    Premises, software and equipment, net     776,679       779,130       772,002       722,295       744,769  
    Lease investments, net     280,472       278,264       270,171       275,459       283,557  
    Accrued interest receivable and other assets     1,598,255       1,739,334       1,721,090       1,671,334       1,580,142  
    Trade date securities receivable     463,023       —       551,031       —       —  
    Goodwill     796,932       796,942       800,780       655,955       656,181  
    Other acquisition-related intangible assets     116,072       121,690       123,866       20,607       21,730  
    Total assets   $ 65,870,066     $ 64,879,668     $ 63,788,424     $ 59,781,516     $ 57,576,933  
    Liabilities and Shareholders’ Equity                    
    Deposits:                    
    Non-interest-bearing   $ 11,201,859     $ 11,410,018     $ 10,739,132     $ 10,031,440     $ 9,908,183  
    Interest-bearing     42,368,179       41,102,331       40,665,834       38,017,586       36,540,675  
    Total deposits     53,570,038       52,512,349       51,404,966       48,049,026       46,448,858  
    Federal Home Loan Bank advances     3,151,309       3,151,309       3,171,309       3,176,309       2,676,751  
    Other borrowings     529,269       534,803       647,043       606,579       575,408  
    Subordinated notes     298,360       298,283       298,188       298,113       437,965  
    Junior subordinated debentures     253,566       253,566       253,566       253,566       253,566  
    Accrued interest payable and other liabilities     1,466,987       1,785,061       1,613,638       1,861,295       1,747,985  
    Total liabilities     59,269,529       58,535,371       57,388,710       54,244,888       52,140,533  
    Shareholders’ Equity:                    
    Preferred stock     412,500       412,500       412,500       412,500       412,500  
    Common stock     67,007       66,560       66,546       61,825       61,798  
    Surplus     2,494,347       2,482,561       2,470,228       1,964,645       1,954,532  
    Treasury stock     (9,156 )     (6,153 )     (6,098 )     (5,760 )     (5,757 )
    Retained earnings     4,045,854       3,897,164       3,748,715       3,615,616       3,498,475  
    Accumulated other comprehensive loss     (410,015 )     (508,335 )     (292,177 )     (512,198 )     (485,148 )
    Total shareholders’ equity     6,600,537       6,344,297       6,399,714       5,536,628       5,436,400  
    Total liabilities and shareholders’ equity   $ 65,870,066     $ 64,879,668     $ 63,788,424     $ 59,781,516     $ 57,576,933  

    WINTRUST FINANCIAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

      Three Months Ended
    (Dollars in thousands, except per share data) Mar 31,
    2025    		   Dec 31,
    2024    		   Sep 30,
    2024    		   Jun 30,
    2024    		   Mar 31,
    2024
    Interest income                  
    Interest and fees on loans $ 768,362     $ 789,038     $ 794,163     $ 749,812     $ 710,341  
    Mortgage loans held-for-sale   4,246       5,623       6,233       5,434       4,146  
    Interest-bearing deposits with banks   36,766       46,256       32,608       19,731       16,658  
    Federal funds sold and securities purchased under resale agreements   179       53       277       17       19  
    Investment securities   72,016       67,066       69,592       69,779       69,678  
    Trading account securities   11       6       11       13       18  
    Federal Home Loan Bank and Federal Reserve Bank stock   5,307       5,157       5,451       4,974       4,478  
    Brokerage customer receivables   78       302       269       219       175  
    Total interest income   886,965       913,501       908,604       849,979       805,513  
    Interest expense                  
    Interest on deposits   320,233       346,388       362,019       335,703       299,532  
    Interest on Federal Home Loan Bank advances   25,441       26,050       26,254       24,797       22,048  
    Interest on other borrowings   6,792       7,519       9,013       8,700       9,248  
    Interest on subordinated notes   3,714       3,733       3,712       5,185       5,487  
    Interest on junior subordinated debentures   4,311       4,663       5,023       4,984       5,004  
    Total interest expense   360,491       388,353       406,021       379,369       341,319  
    Net interest income   526,474       525,148       502,583       470,610       464,194  
    Provision for credit losses   23,963       16,979       22,334       40,061       21,673  
    Net interest income after provision for credit losses   502,511       508,169       480,249       430,549       442,521  
    Non-interest income                  
    Wealth management   34,042       38,775       37,224       35,413       34,815  
    Mortgage banking   20,529       20,452       15,974       29,124       27,663  
    Service charges on deposit accounts   19,362       18,864       16,430       15,546       14,811  
    Gains (losses) on investment securities, net   3,196       (2,835 )     3,189       (4,282 )     1,326  
    Fees from covered call options   3,446       2,305       988       2,056       4,847  
    Trading (losses) gains, net   (64 )     (113 )     (130 )     70       677  
    Operating lease income, net   15,287       15,327       15,335       13,938       14,110  
    Other   20,836       20,676       24,137       29,282       42,331  
    Total non-interest income   116,634       113,451       113,147       121,147       140,580  
    Non-interest expense                  
    Salaries and employee benefits   211,526       212,133       211,261       198,541       195,173  
    Software and equipment   34,717       34,258       31,574       29,231       27,731  
    Operating lease equipment   10,471       10,263       10,518       10,834       10,683  
    Occupancy, net   20,778       20,597       19,945       19,585       19,086  
    Data processing   11,274       10,957       9,984       9,503       9,292  
    Advertising and marketing   12,272       13,097       18,239       17,436       13,040  
    Professional fees   9,044       11,334       9,783       9,967       9,553  
    Amortization of other acquisition-related intangible assets   5,618       5,773       4,042       1,122       1,158  
    FDIC insurance   10,926       10,640       10,512       10,429       14,537  
    OREO expenses, net   643       397       (938 )     (259 )     392  
    Other   38,821       39,090       35,767       33,964       32,500  
    Total non-interest expense   366,090       368,539       360,687       340,353       333,145  
    Income before taxes   253,055       253,081       232,709       211,343       249,956  
    Income tax expense   64,016       67,719       62,708       58,955       62,662  
    Net income $ 189,039     $ 185,362     $ 170,001     $ 152,388     $ 187,294  
    Preferred stock dividends   6,991       6,991       6,991       6,991       6,991  
    Net income applicable to common shares $ 182,048     $ 178,371     $ 163,010     $ 145,397     $ 180,303  
    Net income per common share – Basic $ 2.73     $ 2.68     $ 2.51     $ 2.35     $ 2.93  
    Net income per common share – Diluted $ 2.69     $ 2.63     $ 2.47     $ 2.32     $ 2.89  
    Cash dividends declared per common share $ 0.50     $ 0.45     $ 0.45     $ 0.45     $ 0.45  
    Weighted average common shares outstanding   66,726       66,491       64,888       61,839       61,481  
    Dilutive potential common shares   923       1,233       1,053       926       928  
    Average common shares and dilutive common shares   67,649       67,724       65,941       62,765       62,409  

    TABLE 1: LOAN PORTFOLIO MIX AND GROWTH RATES

                        % Growth From
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Sep 30,
    2024    		   Jun 30,
    2024    		   Mar 31,
    2024    		 Dec 31,
    2024 (1)    		   Mar 31,
    2024
    Balance:                        
    Mortgage loans held-for-sale, excluding early buy-out exercised loans guaranteed by U.S. government agencies $ 181,580     $ 189,774     $ 314,693     $ 281,103     $ 193,064   (18 )%   (6 )%
    Mortgage loans held-for-sale, early buy-out exercised loans guaranteed by U.S. government agencies   135,224       141,487       146,374       130,748       146,820   (18 )   (8 )
    Total mortgage loans held-for-sale $ 316,804     $ 331,261     $ 461,067     $ 411,851     $ 339,884   (18 )%   (7 )%
                             
    Core loans:                        
    Commercial                        
    Commercial and industrial $ 6,871,206     $ 6,867,422     $ 6,774,683     $ 6,236,290     $ 6,117,004   0 %   12 %
    Asset-based lending   1,701,962       1,611,001       1,709,685       1,465,867       1,355,255   23     26  
    Municipal   798,646       826,653       827,125       747,357       721,526   (14 )   11  
    Leases   2,680,943       2,537,325       2,443,721       2,439,128       2,344,295   23     14  
    Commercial real estate                        
    Residential construction   55,849       48,617       73,088       55,019       57,558   60     (3 )
    Commercial construction   2,086,797       2,065,775       1,984,240       1,866,701       1,748,607   4     19  
    Land   306,235       319,689       346,362       338,831       344,149   (17 )   (11 )
    Office   1,641,555       1,656,109       1,675,286       1,585,312       1,566,748   (4 )   5  
    Industrial   2,677,555       2,628,576       2,527,932       2,307,455       2,190,200   8     22  
    Retail   1,402,837       1,374,655       1,404,586       1,365,753       1,366,415   8     3  
    Multi-family   3,091,314       3,125,505       3,193,339       2,988,940       2,922,432   (4 )   6  
    Mixed use and other   1,652,759       1,685,018       1,588,584       1,439,186       1,437,328   (8 )   15  
    Home equity   455,683       445,028       427,043       356,313       340,349   10     34  
    Residential real estate                        
    Residential real estate loans for investment   3,561,417       3,456,009       3,252,649       2,933,157       2,746,916   12     30  
    Residential mortgage loans, early buy-out eligible loans guaranteed by U.S. government agencies   86,952       114,985       92,355       88,503       90,911   (99 )   (4 )
    Residential mortgage loans, early buy-out exercised loans guaranteed by U.S. government agencies   36,790       41,771       43,034       45,675       52,439   (48 )   (30 )
    Total core loans $ 29,108,500     $ 28,804,138     $ 28,363,712     $ 26,259,487     $ 25,402,132   4 %   15 %
                             
    Niche loans:                        
    Commercial                        
    Franchise $ 1,262,555     $ 1,268,521     $ 1,191,686     $ 1,150,460     $ 1,122,302   (2 )%   12 %
    Mortgage warehouse lines of credit   1,019,543       893,854       750,462       593,519       403,245   57     NM
    Community Advantage – homeowners association   525,492       525,446       501,645       491,722       475,832   0     10  
    Insurance agency lending   1,070,979       1,044,329       1,048,686       1,030,119       964,022   10     11  
    Premium Finance receivables                        
    U.S. property & casualty insurance   6,486,663       6,447,625       6,253,271       6,142,654       6,113,993   2     6  
    Canada property & casualty insurance   753,199       824,417       878,410       958,099       826,026   (35 )   (9 )
    Life insurance   8,365,140       8,147,145       7,996,899       7,962,115       7,872,033   11     6  
    Consumer and other   116,319       99,562       82,676       87,356       51,121   68     NM
    Total niche loans $ 19,599,890     $ 19,250,899     $ 18,703,735     $ 18,416,044     $ 17,828,574   7 %   10 %
                             
    Total loans, net of unearned income $ 48,708,390     $ 48,055,037     $ 47,067,447     $ 44,675,531     $ 43,230,706   6 %   13 %

    (1)   Annualized.


    TABLE 2: DEPOSIT PORTFOLIO MIX AND GROWTH RATES

                        % Growth From
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Sep 30,
    2024    		   Jun 30,
    2024    		   Mar 31,
    2024    		 Dec 31,
    2024 (1)    		   Mar 31, 2024
    Balance:                        
    Non-interest-bearing $ 11,201,859     $ 11,410,018     $ 10,739,132     $ 10,031,440     $ 9,908,183   (7 )%   13 %
    NOW and interest-bearing demand deposits   6,340,168       5,865,546       5,466,932       5,053,909       5,720,947   33     11  
    Wealth management deposits (2)   1,408,790       1,469,064       1,303,354       1,490,711       1,347,817   (17 )   5  
    Money market   18,074,733       17,975,191       17,713,726       16,320,017       15,617,717   2     16  
    Savings   6,576,251       6,372,499       6,183,249       5,882,179       5,959,774   13     10  
    Time certificates of deposit   9,968,237       9,420,031       9,998,573       9,270,770       7,894,420   24     26  
    Total deposits $ 53,570,038     $ 52,512,349     $ 51,404,966     $ 48,049,026     $ 46,448,858   8 %   15 %
    Mix:                        
    Non-interest-bearing   21 %     22 %     21 %     21 %     21 %      
    NOW and interest-bearing demand deposits   12       11       11       11       12        
    Wealth management deposits (2)   3       3       3       3       3        
    Money market   34       34       34       34       34        
    Savings   12       12       12       12       13        
    Time certificates of deposit   18       18       19       19       17        
    Total deposits   100 %     100 %     100 %     100 %     100 %      

    (1)   Annualized.
    (2)   Represents deposit balances of the Company’s subsidiary banks from brokerage customers of Wintrust Investments, Chicago Deferred Exchange Company, LLC (“CDEC”), and trust and asset management customers of the Company.


    TABLE 3    : TIME CERTIFICATES OF DEPOSIT MATURITY/RE-PRICING ANALYSIS
    As of March 31, 2025

    (Dollars in thousands)   Total Time
    Certificates of
    Deposit    		   Weighted-Average
    Rate of Maturing
    Time Certificates
    of Deposit
    1-3 months   $ 3,845,120     4.34 %
    4-6 months     2,345,184     3.81  
    7-9 months     2,694,739     3.72  
    10-12 months     711,206     3.62  
    13-18 months     210,063     3.03  
    19-24 months     87,336     2.72  
    24+ months     74,589     2.47  
    Total   $ 9,968,237     3.94 %

    TABLE 4: QUARTERLY AVERAGE BALANCES

        Average Balance for three months ended,
        Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (In thousands)     2025       2024       2024       2024       2024  
    Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents (1)   $ 3,520,048     $ 3,934,016     $ 2,413,728     $ 1,485,481     $ 1,254,332  
    Investment securities (2)     8,409,735       8,090,271       8,276,576       8,203,764       8,349,796  
    FHLB and FRB stock     281,702       271,825       263,707       253,614       230,648  
    Liquidity management assets (3)   $ 12,211,485     $ 12,296,112     $ 10,954,011     $ 9,942,859     $ 9,834,776  
    Other earning assets (3)(4)     13,140       20,528       17,542       15,257       15,081  
    Mortgage loans held-for-sale     286,710       378,707       376,251       347,236       290,275  
    Loans, net of unearned income (3)(5)     47,833,380       47,153,014       45,920,586       43,819,354       42,129,893  
    Total earning assets (3)   $ 60,344,715     $ 59,848,361     $ 57,268,390     $ 54,124,706     $ 52,270,025  
    Allowance for loan and investment security losses     (375,371 )     (367,238 )     (383,736 )     (360,504 )     (361,734 )
    Cash and due from banks     476,423       470,033       467,333       434,916       450,267  
    Other assets     3,661,275       3,642,949       3,563,296       3,294,066       3,244,137  
    Total assets   $ 64,107,042     $ 63,594,105     $ 60,915,283     $ 57,493,184     $ 55,602,695  
                         
    NOW and interest-bearing demand deposits   $ 6,046,189     $ 5,601,672     $ 5,174,673     $ 4,985,306     $ 5,680,265  
    Wealth management deposits     1,574,480       1,430,163       1,362,747       1,531,865       1,510,203  
    Money market accounts     17,581,141       17,579,395       16,436,111       15,272,126       14,474,492  
    Savings accounts     6,479,444       6,288,727       6,096,746       5,878,844       5,792,118  
    Time deposits     9,406,126       9,702,948       9,598,109       8,546,172       7,148,456  
    Interest-bearing deposits   $ 41,087,380     $ 40,602,905     $ 38,668,386     $ 36,214,313     $ 34,605,534  
    Federal Home Loan Bank advances     3,151,309       3,160,658       3,178,973       3,096,920       2,728,849  
    Other borrowings     582,139       577,786       622,792       587,262       627,711  
    Subordinated notes     298,306       298,225       298,135       410,331       437,893  
    Junior subordinated debentures     253,566       253,566       253,566       253,566       253,566  
    Total interest-bearing liabilities   $ 45,372,700     $ 44,893,140     $ 43,021,852     $ 40,562,392     $ 38,653,553  
    Non-interest-bearing deposits     10,732,156       10,718,738       10,271,613       9,879,134       9,972,646  
    Other liabilities     1,541,245       1,563,824       1,631,389       1,601,485       1,536,039  
    Equity     6,460,941       6,418,403       5,990,429       5,450,173       5,440,457  
    Total liabilities and shareholders’ equity   $ 64,107,042     $ 63,594,105     $ 60,915,283     $ 57,493,184     $ 55,602,695  
                         
    Net free funds/contribution (6)   $ 14,972,015     $ 14,955,221     $ 14,246,538     $ 13,562,314     $ 13,616,472  

    (1)   Includes interest-bearing deposits from banks and securities purchased under resale agreements with original maturities of greater than three months. Cash equivalents include federal funds sold and securities purchased under resale agreements with original maturities of three months or less.
    (2)   Investment securities includes investment securities classified as available-for-sale and held-to-maturity, and equity securities with readily determinable fair values. Equity securities without readily determinable fair values are included within other assets.
    (3)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
    (4)   Other earning assets include brokerage customer receivables and trading account securities.
    (5)   Loans, net of unearned income, include non-accrual loans.
    (6)   Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.


    TABLE 5: QUARTERLY NET INTEREST INCOME

        Net Interest Income for three months ended,
        Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (In thousands)     2025       2024       2024       2024       2024  
    Interest income:                    
    Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents   $ 36,945     $ 46,308     $ 32,885     $ 19,748     $ 16,677  
    Investment securities     72,706       67,783       70,260       70,346       70,228  
    FHLB and FRB stock     5,307       5,157       5,451       4,974       4,478  
    Liquidity management assets (1)   $ 114,958     $ 119,248     $ 108,596     $ 95,068     $ 91,383  
    Other earning assets (1)     92       310       282       235       198  
    Mortgage loans held-for-sale     4,246       5,623       6,233       5,434       4,146  
    Loans, net of unearned income (1)     770,568       791,390       796,637       752,117       712,587  
    Total interest income   $ 889,864     $ 916,571     $ 911,748     $ 852,854     $ 808,314  
                         
    Interest expense:                    
    NOW and interest-bearing demand deposits   $ 33,600     $ 31,695     $ 30,971     $ 32,719     $ 34,896  
    Wealth management deposits     8,606       9,412       10,158       10,294       10,461  
    Money market accounts     146,374       159,945       167,382       155,100       137,984  
    Savings accounts     35,923       38,402       42,892       41,063       39,071  
    Time deposits     95,730       106,934       110,616       96,527       77,120  
    Interest-bearing deposits   $ 320,233     $ 346,388     $ 362,019     $ 335,703     $ 299,532  
    Federal Home Loan Bank advances     25,441       26,050       26,254       24,797       22,048  
    Other borrowings     6,792       7,519       9,013       8,700       9,248  
    Subordinated notes     3,714       3,733       3,712       5,185       5,487  
    Junior subordinated debentures     4,311       4,663       5,023       4,984       5,004  
    Total interest expense   $ 360,491     $ 388,353     $ 406,021     $ 379,369     $ 341,319  
                         
    Less: Fully taxable-equivalent adjustment     (2,899 )     (3,070 )     (3,144 )     (2,875 )     (2,801 )
    Net interest income (GAAP) (2)     526,474       525,148       502,583       470,610       464,194  
    Fully taxable-equivalent adjustment     2,899       3,070       3,144       2,875       2,801  
    Net interest income, fully taxable-equivalent (non-GAAP) (2)   $ 529,373     $ 528,218     $ 505,727     $ 473,485     $ 466,995  

    (1)   Interest income on tax-advantaged loans, trading securities and investment securities reflects a taxable-equivalent adjustment based on the marginal federal corporate tax rate in effect as of the applicable period.
    (2)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.


    TABLE 6: QUARTERLY NET INTEREST MARGIN

        Net Interest Margin for three months ended,
        Mar 31,
    2025    		   Dec 31,
    2024    		   Sep 30,
    2024    		   Jun 30,
    2024    		   Mar 31,
    2024
    Yield earned on:                    
    Interest-bearing deposits with banks, securities purchased under resale agreements and cash equivalents   4.26 %   4.68 %   5.42 %   5.35 %   5.35 %
    Investment securities   3.51     3.33     3.38     3.45     3.38  
    FHLB and FRB stock   7.64     7.55     8.22     7.89     7.81  
    Liquidity management assets   3.82 %   3.86 %   3.94 %   3.85 %   3.74 %
    Other earning assets   2.84     6.01     6.38     6.23     5.25  
    Mortgage loans held-for-sale   6.01     5.91     6.59     6.29     5.74  
    Loans, net of unearned income   6.53     6.68     6.90     6.90     6.80  
    Total earning assets   5.98 %   6.09 %   6.33 %   6.34 %   6.22 %
                         
    Rate paid on:                    
    NOW and interest-bearing demand deposits   2.25 %   2.25 %   2.38 %   2.64 %   2.47 %
    Wealth management deposits   2.22     2.62     2.97     2.70     2.79  
    Money market accounts   3.38     3.62     4.05     4.08     3.83  
    Savings accounts   2.25     2.43     2.80     2.81     2.71  
    Time deposits   4.13     4.38     4.58     4.54     4.34  
    Interest-bearing deposits   3.16 %   3.39 %   3.72 %   3.73 %   3.48 %
    Federal Home Loan Bank advances   3.27     3.28     3.29     3.22     3.25  
    Other borrowings   4.73     5.18     5.76     5.96     5.92  
    Subordinated notes   5.05     4.98     4.95     5.08     5.04  
    Junior subordinated debentures   6.90     7.32     7.88     7.91     7.94  
    Total interest-bearing liabilities   3.22 %   3.44 %   3.75 %   3.76 %   3.55 %
                         
    Interest rate spread (1)(2)   2.76 %   2.65 %   2.58 %   2.58 %   2.67 %
    Less: Fully taxable-equivalent adjustment   (0.02 )   (0.02 )   (0.02 )   (0.02 )   (0.02 )
    Net free funds/contribution (3)   0.80     0.86     0.93     0.94     0.92  
    Net interest margin (GAAP) (2)   3.54 %   3.49 %   3.49 %   3.50 %   3.57 %
    Fully taxable-equivalent adjustment   0.02     0.02     0.02     0.02     0.02  
    Net interest margin, fully taxable-equivalent (non-GAAP) (2)   3.56 %   3.51 %   3.51 %   3.52 %   3.59 %

    (1)   Interest rate spread is the difference between the yield earned on earning assets and the rate paid on interest-bearing liabilities.
    (2)   See Table 17: Supplemental Non-GAAP Financial Measures/Ratios for additional information on this performance measure/ratio.
    (3)   Net free funds are the difference between total average earning assets and total average interest-bearing liabilities. The estimated contribution to net interest margin from net free funds is calculated using the rate paid for total interest-bearing liabilities.


    TABLE 7    : INTEREST RATE SENSITIVITY

    As an ongoing part of its financial strategy, the Company attempts to manage the impact of fluctuations in market interest rates on net interest income. Management measures its exposure to changes in interest rates by modeling many different interest rate scenarios.

    The following interest rate scenarios display the percentage change in net interest income over a one-year time horizon assuming increases and decreases of 100 and 200 basis points as compared to projected net interest income in a scenario with no assumed rate changes. The Static Shock Scenario results incorporate actual cash flows and repricing characteristics for balance sheet instruments following an instantaneous, parallel change in market rates based upon a static (i.e. no growth or constant) balance sheet. Conversely, the Ramp Scenario results incorporate management’s projections of future volume and pricing of each of the product lines following a gradual, parallel change in market rates over twelve months. Actual results may differ from these simulated results due to timing, magnitude, and frequency of interest rate changes as well as changes in market conditions and management strategies. The interest rate sensitivity for both the Static Shock and Ramp Scenario is as follows:

    Static Shock Scenario   +200 Basis
    Points    		   +100 Basis
    Points    		   -100 Basis
    Points    		   -200 Basis
    Points
    Mar 31, 2025   (1.8 )%   (0.6 )%   (0.2 )%   (1.2 )%
    Dec 31, 2024   (1.6 )   (0.6 )   (0.3 )   (1.5 )
    Sep 30, 2024   1.2     1.1     0.4     (0.9 )
    Jun 30, 2024   1.5     1.0     0.6     (0.0 )
    Mar 31, 2024   1.9     1.4     1.5     1.6  
    Ramp Scenario +200 Basis
    Points    		   +100 Basis
    Points    		   -100 Basis
    Points    		     -200 Basis
    Points
    Mar 31, 2025 0.2 %   0.2 %   (0.1 )%   (0.5 )%
    Dec 31, 2024 (0.2 )   (0.0 )   0.0     (0.3 )
    Sep 30, 2024 1.6     1.2     0.7     0.5  
    Jun 30, 2024 1.2     1.0     0.9     1.0  
    Mar 31, 2024 0.8     0.6     1.3     2.0  

    As shown above, the magnitude of potential changes in net interest income in various interest rate scenarios has continued to remain relatively neutral. As the current interest rate cycle progressed, management took action to reposition its sensitivity to interest rates. To this end, management has executed various derivative instruments including collars and receive fixed swaps to hedge variable rate loan exposures and originated a higher percentage of its loan originations in longer-term fixed-rate loans. The Company will continue to monitor current and projected interest rates and may execute additional derivatives to mitigate potential fluctuations in the net interest margin in future periods.


    TABLE 8    : MATURITIES AND SENSITIVITIES TO CHANGES IN INTEREST RATES

      Loans repricing or contractual maturity period
    As of March 31, 2025
    (In thousands)
    		 One year or
    less    		   From one to
    five years    		   From five to fifteen years   After fifteen years   Total
    Commercial                  
    Fixed rate $ 405,736     $ 3,600,171     $ 2,122,563     $ 20,444     $ 6,148,914  
    Variable rate   9,781,709       703       —       —       9,782,412  
    Total commercial $ 10,187,445     $ 3,600,874     $ 2,122,563     $ 20,444     $ 15,931,326  
    Commercial real estate                  
    Fixed rate $ 658,413     $ 2,762,221     $ 365,181     $ 63,593     $ 3,849,408  
    Variable rate   9,054,583       10,843       67       —       9,065,493  
    Total commercial real estate $ 9,712,996     $ 2,773,064     $ 365,248     $ 63,593     $ 12,914,901  
    Home equity                  
    Fixed rate $ 8,881     $ 838     $ —     $ 17     $ 9,736  
    Variable rate   445,947       —       —       —       445,947  
    Total home equity $ 454,828     $ 838     $ —     $ 17     $ 455,683  
    Residential real estate                  
    Fixed rate $ 13,336     $ 4,473     $ 74,883     $ 1,055,143     $ 1,147,835  
    Variable rate   97,815       623,879       1,815,630       —       2,537,324  
    Total residential real estate $ 111,151     $ 628,352     $ 1,890,513     $ 1,055,143     $ 3,685,159  
    Premium finance receivables – property & casualty                  
    Fixed rate $ 7,135,963     $ 103,899     $ —     $ —     $ 7,239,862  
    Variable rate   —       —       —       —       —  
    Total premium finance receivables – property & casualty $ 7,135,963     $ 103,899     $ —     $ —     $ 7,239,862  
    Premium finance receivables – life insurance                  
    Fixed rate $ 350,802     $ 207,832     $ 4,000     $ 4,248     $ 566,882  
    Variable rate   7,798,258       —       —       —       7,798,258  
    Total premium finance receivables – life insurance $ 8,149,060     $ 207,832     $ 4,000     $ 4,248     $ 8,365,140  
    Consumer and other                  
    Fixed rate $ 44,731     $ 7,937     $ 883     $ 914     $ 54,465  
    Variable rate   61,854       —       —       —       61,854  
    Total consumer and other $ 106,585     $ 7,937     $ 883     $ 914     $ 116,319  
                       
    Total per category                  
    Fixed rate $ 8,617,862     $ 6,687,371     $ 2,567,510     $ 1,144,359     $ 19,017,102  
    Variable rate   27,240,166       635,425       1,815,697       —       29,691,288  
    Total loans, net of unearned income $ 35,858,028     $ 7,322,796     $ 4,383,207     $ 1,144,359     $ 48,708,390  
    Less: Existing cash flow hedging derivatives (1)   (6,700,000 )                
    Total loans repricing or maturing in one year or less, adjusted for cash flow hedging activity $ 29,158,028                  
                       
    Variable Rate Loan Pricing by Index:                  
    SOFR tenors (2)                 $ 18,328,835  
    12- month CMT (3)                   6,722,305  
    Prime                   3,420,624  
    Fed Funds                   819,437  
    Other U.S. Treasury tenors                   190,187  
    Other                   209,900  
    Total variable rate                 $ 29,691,288  

    (1)   Excludes cash flow hedges with future effective starting dates.
    (2)   SOFR – Secured Overnight Financing Rate.
    (3)   CMT – Constant Maturity Treasury Rate.

    Graph available at the following link: http://ml.globenewswire.com/Resource/Download/bebf97a7-5d4d-430d-a436-ae832412a4db

    Source: Bloomberg

    As noted in the table on the previous page, the majority of the Company’s portfolio is tied to SOFR and CMT indices which, as shown in the table above, do not mirror the same changes as the Prime rate, which has historically moved when the Federal Reserve raises or lowers interest rates. Specifically, the Company has variable rate loans of $15.4 billion tied to one-month SOFR and $6.7 billion tied to twelve-month CMT. The above chart shows:

        Basis Point (bp) Change in
        1-month
    SOFR    		   12- month CMT   Prime  
    First Quarter 2025   (1 ) bps (13 ) bps 0   bps
    Fourth Quarter 2024   (52 )   18     (50 )  
    Third Quarter 2024   (49 )   (111 )   (50 )  
    Second Quarter 2024   1     6     0    
    First Quarter 2024   (2 )   24     0    

    TABLE 9: ALLOWANCE FOR CREDIT LOSSES

        Three Months Ended
        Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (Dollars in thousands)     2025       2024       2024       2024       2024  
    Allowance for credit losses at beginning of period   $ 437,060     $ 436,193     $ 437,560     $ 427,504     $ 427,612  
    Provision for credit losses – Other     23,963       16,979       6,787       40,061       21,673  
    Provision for credit losses – Day 1 on non-PCD assets acquired during the period     —       —       15,547       —       —  
    Initial allowance for credit losses recognized on PCD assets acquired during the period     —       —       3,004       —       —  
    Other adjustments     4       (187 )     30       (19 )     (31 )
    Charge-offs:                    
    Commercial     9,722       5,090       22,975       9,584       11,215  
    Commercial real estate     454       1,037       95       15,526       5,469  
    Home equity     —       —       —       —       74  
    Residential real estate     —       114       —       23       38  
    Premium finance receivables – property & casualty     7,114       13,301       7,790       9,486       6,938  
    Premium finance receivables – life insurance     12       —       4       —       —  
    Consumer and other     147       189       154       137       107  
    Total charge-offs     17,449       19,731       31,018       34,756       23,841  
    Recoveries:                    
    Commercial     929       775       649       950       479  
    Commercial real estate     12       172       30       90       31  
    Home equity     216       194       101       35       29  
    Residential real estate     136       0       5       8       2  
    Premium finance receivables – property & casualty     3,487       2,646       3,436       3,658       1,519  
    Premium finance receivables – life insurance     —       —       41       5       8  
    Consumer and other     29       19       21       24       23  
    Total recoveries     4,809       3,806       4,283       4,770       2,091  
    Net charge-offs     (12,640 )     (15,925 )     (26,735 )     (29,986 )     (21,750 )
    Allowance for credit losses at period end   $ 448,387     $ 437,060     $ 436,193     $ 437,560     $ 427,504  
                         
    Annualized net charge-offs (recoveries) by category as a percentage of its own respective category’s average:
    Commercial     0.23 %     0.11 %     0.61 %     0.25 %     0.33 %
    Commercial real estate     0.01       0.03       0.00       0.53       0.19  
    Home equity     (0.20 )     (0.18 )     (0.10 )     (0.04 )     0.05  
    Residential real estate     (0.02 )     0.01       0.00       0.00       0.01  
    Premium finance receivables – property & casualty     0.20       0.59       0.24       0.33       0.32  
    Premium finance receivables – life insurance     0.00       —       (0.00 )     (0.00 )     (0.00 )
    Consumer and other     0.45       0.63       0.63       0.56       0.42  
    Total loans, net of unearned income     0.11 %     0.13 %     0.23 %     0.28 %     0.21 %
                         
    Loans at period end   $ 48,708,390     $ 48,055,037     $ 47,067,447     $ 44,675,531     $ 43,230,706  
    Allowance for loan losses as a percentage of loans at period end     0.78 %     0.76 %     0.77 %     0.81 %     0.81 %
    Allowance for loan and unfunded lending-related commitment losses as a percentage of loans at period end     0.92       0.91       0.93       0.98       0.99  

    PCD – Purchase Credit Deteriorated


    TABLE 10    : ALLOWANCE AND PROVISION FOR CREDIT LOSSES BY COMPONENT

        Three Months Ended
        Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (In thousands)     2025       2024       2024       2024       2024  
    Provision for loan losses – Other   $ 26,826     $ 19,852     $ 6,782     $ 45,111     $ 26,159  
    Provision for credit losses – Day 1 on non-PCD assets acquired during the period     —       —       15,547       —       —  
    Provision for unfunded lending-related commitments losses – Other     (2,852 )     (2,851 )     17       (5,212 )     (4,468 )
    Provision for held-to-maturity securities losses     (11 )     (22 )     (12 )     162       (18 )
    Provision for credit losses   $ 23,963     $ 16,979     $ 22,334     $ 40,061     $ 21,673  
                         
    Allowance for loan losses   $ 378,207     $ 364,017     $ 360,279     $ 363,719     $ 348,612  
    Allowance for unfunded lending-related commitments losses     69,734       72,586       75,435       73,350       78,563  
    Allowance for loan losses and unfunded lending-related commitments losses     447,941       436,603       435,714       437,069       427,175  
    Allowance for held-to-maturity securities losses     446       457       479       491       329  
    Allowance for credit losses   $ 448,387     $ 437,060     $ 436,193     $ 437,560     $ 427,504  

    PCD – Purchase Credit Deteriorated 


    TABLE 11: ALLOWANCE BY LOAN PORTFOLIO

    The table below summarizes the calculation of allowance for loan losses and allowance for unfunded lending-related commitments losses for the Company’s loan portfolios as well as core and niche portfolios, as of March 31, 2025, December 31, 2024 and September 30, 2024.

      As of Mar 31, 2025 As of Dec 31, 2024 As of Sep 30, 2024
    (Dollars in thousands) Recorded
    Investment    		   Calculated
    Allowance    		   % of its
    category’s balance    		 Recorded
    Investment    		   Calculated
    Allowance    		   % of its
    category’s balance    		 Recorded
    Investment    		   Calculated
    Allowance    		   % of its
    category’s balance
    Commercial:                              
    Commercial, industrial and other $ 15,931,326   $ 201,183   1.26 % $ 15,574,551   $ 175,837   1.13 % $ 15,247,693   $ 171,598   1.13 %
    Commercial real estate:                              
    Construction and development   2,448,881     71,388   2.92     2,434,081     87,236   3.58     2,403,690     97,949   4.07  
    Non-construction   10,466,020     138,622   1.32     10,469,863     135,620   1.30     10,389,727     133,195   1.28  
    Total commercial real estate $ 12,914,901   $ 210,010   1.63 % $ 12,903,944   $ 222,856   1.73 % $ 12,793,417   $ 231,144   1.81 %
    Total commercial and commercial real estate $ 28,846,227   $ 411,193   1.43 % $ 28,478,495   $ 398,693   1.40 % $ 28,041,110   $ 402,742   1.44 %
    Home equity   455,683     9,139   2.01     445,028     8,943   2.01     427,043     8,823   2.07  
    Residential real estate   3,685,159     10,652   0.29     3,612,765     10,335   0.29     3,388,038     9,745   0.29  
    Premium finance receivables                              
    Property and casualty insurance   7,239,862     15,310   0.21     7,272,042     17,111   0.24     7,131,681     13,045   0.18  
    Life insurance   8,365,140     729   0.01     8,147,145     709   0.01     7,996,899     698   0.01  
    Consumer and other   116,319     918   0.79     99,562     812   0.82     82,676     661   0.80  
    Total loans, net of unearned income $ 48,708,390   $ 447,941   0.92 % $ 48,055,037   $ 436,603   0.91 % $ 47,067,447   $ 435,714   0.93 %
                                   
    Total core loans (1) $ 29,108,500   $ 397,664   1.37 % $ 28,804,138   $ 392,319   1.36 % $ 28,363,712   $ 396,394   1.40 %
    Total niche loans (1)   19,599,890     50,277   0.26     19,250,899     44,284   0.23     18,703,735     39,320   0.21  

    (1)   See Table 1 for additional detail on core and niche loans.


    TABLE 12    : LOAN PORTFOLIO AGING

    (In thousands)   Mar 31, 2025   Dec 31, 2024   Sep 30, 2024   Jun 30, 2024   Mar 31, 2024
    Loan Balances:                    
    Commercial                    
    Nonaccrual   $ 70,560     $ 73,490     $ 63,826     $ 51,087     $ 31,740  
    90+ days and still accruing     46       104       20       304       27  
    60-89 days past due     15,243       54,844       32,560       16,485       30,248  
    30-59 days past due     97,397       92,551       46,057       36,358       77,715  
    Current     15,748,080       15,353,562       15,105,230       14,050,228       13,363,751  
    Total commercial   $ 15,931,326     $ 15,574,551     $ 15,247,693     $ 14,154,462     $ 13,503,481  
    Commercial real estate                    
    Nonaccrual   $ 26,187     $ 21,042     $ 42,071     $ 48,289     $ 39,262  
    90+ days and still accruing     —       —       225       —       —  
    60-89 days past due     6,995       10,521       13,439       6,555       16,713  
    30-59 days past due     83,653       30,766       48,346       38,065       32,998  
    Current     12,798,066       12,841,615       12,689,336       11,854,288       11,544,464  
    Total commercial real estate   $ 12,914,901     $ 12,903,944     $ 12,793,417     $ 11,947,197     $ 11,633,437  
    Home equity                    
    Nonaccrual   $ 2,070     $ 1,117     $ 1,122     $ 1,100     $ 838  
    90+ days and still accruing     —       —       —       —       —  
    60-89 days past due     984       1,233       1,035       275       212  
    30-59 days past due     3,403       2,148       2,580       1,229       1,617  
    Current     449,226       440,530       422,306       353,709       337,682  
    Total home equity   $ 455,683     $ 445,028     $ 427,043     $ 356,313     $ 340,349  
    Residential real estate                    
    Early buy-out loans guaranteed by U.S. government agencies (1)   $ 123,742     $ 156,756     $ 135,389     $ 134,178     $ 143,350  
    Nonaccrual     22,522       23,762       17,959       18,198       17,901  
    90+ days and still accruing     —       —       —       —       —  
    60-89 days past due     1,351       5,708       6,364       1,977       —  
    30-59 days past due     38,943       18,917       2,160       130       24,523  
    Current     3,498,601       3,407,622       3,226,166       2,912,852       2,704,492  
    Total residential real estate   $ 3,685,159     $ 3,612,765     $ 3,388,038     $ 3,067,335     $ 2,890,266  
    Premium finance receivables – property & casualty                    
    Nonaccrual   $ 29,846     $ 28,797     $ 36,079     $ 32,722     $ 32,648  
    90+ days and still accruing     18,081       16,031       18,235       22,427       25,877  
    60-89 days past due     19,717       19,042       18,740       29,925       15,274  
    30-59 days past due     39,459       68,219       30,204       45,927       59,729  
    Current     7,132,759       7,139,953       7,028,423       6,969,752       6,806,491  
    Total Premium finance receivables – property & casualty   $ 7,239,862     $ 7,272,042     $ 7,131,681     $ 7,100,753     $ 6,940,019  
    Premium finance receivables – life insurance                    
    Nonaccrual   $ —     $ 6,431     $ —     $ —     $ —  
    90+ days and still accruing     2,962       —       —       —       —  
    60-89 days past due     10,587       72,963       10,902       4,118       32,482  
    30-59 days past due     29,924       36,405       74,432       17,693       100,137  
    Current     8,321,667       8,031,346       7,911,565       7,940,304       7,739,414  
    Total Premium finance receivables – life insurance   $ 8,365,140     $ 8,147,145     $ 7,996,899     $ 7,962,115     $ 7,872,033  
    Consumer and other                    
    Nonaccrual   $ 18     $ 2     $ 2     $ 3     $ 19  
    90+ days and still accruing     98       47       148       121       47  
    60-89 days past due     162       59       22       81       16  
    30-59 days past due     542       882       264       366       210  
    Current     115,499       98,572       82,240       86,785       50,829  
    Total consumer and other   $ 116,319     $ 99,562     $ 82,676     $ 87,356     $ 51,121  
    Total loans, net of unearned income                    
    Early buy-out loans guaranteed by U.S. government agencies (1)   $ 123,742     $ 156,756     $ 135,389     $ 134,178     $ 143,350  
    Nonaccrual     151,203       154,641       161,059       151,399       122,408  
    90+ days and still accruing     21,187       16,182       18,628       22,852       25,951  
    60-89 days past due     55,039       164,370       83,062       59,416       94,945  
    30-59 days past due     293,321       249,888       204,043       139,768       296,929  
    Current     48,063,898       47,313,200       46,465,266       44,167,918       42,547,123  
    Total loans, net of unearned income   $ 48,708,390     $ 48,055,037     $ 47,067,447     $ 44,675,531     $ 43,230,706  

    (1)   Early buy-out loans are insured or guaranteed by the Federal Housing Administration or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.


    TABLE 13:     NON-PERFORMING ASSETS(1)

      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (Dollars in thousands)   2025       2024       2024       2024       2024  
    Loans past due greater than 90 days and still accruing:                  
    Commercial $ 46     $ 104     $ 20     $ 304     $ 27  
    Commercial real estate   —       —       225       —       —  
    Home equity   —       —       —       —       —  
    Residential real estate   —       —       —       —       —  
    Premium finance receivables – property & casualty   18,081       16,031       18,235       22,427       25,877  
    Premium finance receivables – life insurance   2,962       —       —       —       —  
    Consumer and other   98       47       148       121       47  
    Total loans past due greater than 90 days and still accruing   21,187       16,182       18,628       22,852       25,951  
    Non-accrual loans:                  
    Commercial   70,560       73,490       63,826       51,087       31,740  
    Commercial real estate   26,187       21,042       42,071       48,289       39,262  
    Home equity   2,070       1,117       1,122       1,100       838  
    Residential real estate   22,522       23,762       17,959       18,198       17,901  
    Premium finance receivables – property & casualty   29,846       28,797       36,079       32,722       32,648  
    Premium finance receivables – life insurance   —       6,431       —       —       —  
    Consumer and other   18       2       2       3       19  
    Total non-accrual loans   151,203       154,641       161,059       151,399       122,408  
    Total non-performing loans:                  
    Commercial   70,606       73,594       63,846       51,391       31,767  
    Commercial real estate   26,187       21,042       42,296       48,289       39,262  
    Home equity   2,070       1,117       1,122       1,100       838  
    Residential real estate   22,522       23,762       17,959       18,198       17,901  
    Premium finance receivables – property & casualty   47,927       44,828       54,314       55,149       58,525  
    Premium finance receivables – life insurance   2,962       6,431       —       —       —  
    Consumer and other   116       49       150       124       66  
    Total non-performing loans $ 172,390     $ 170,823     $ 179,687     $ 174,251     $ 148,359  
    Other real estate owned   22,625       23,116       13,682       19,731       14,538  
    Total non-performing assets $ 195,015     $ 193,939     $ 193,369     $ 193,982     $ 162,897  
    Total non-performing loans by category as a percent of its own respective category’s period-end balance:                  
    Commercial   0.44 %     0.47 %     0.42 %     0.36 %     0.24 %
    Commercial real estate   0.20       0.16       0.33       0.40       0.34  
    Home equity   0.45       0.25       0.26       0.31       0.25  
    Residential real estate   0.61       0.66       0.53       0.59       0.62  
    Premium finance receivables – property & casualty   0.66       0.62       0.76       0.78       0.84  
    Premium finance receivables – life insurance   0.04       0.08       —       —       —  
    Consumer and other   0.10       0.05       0.18       0.14       0.13  
    Total loans, net of unearned income   0.35 %     0.36 %     0.38 %     0.39 %     0.34 %
    Total non-performing assets as a percentage of total assets   0.30 %     0.30 %     0.30 %     0.32 %     0.28 %
    Allowance for loan losses and unfunded lending-related commitments losses as a percentage of non-accrual loans   296.25 %     282.33 %     270.53 %     288.69 %     348.98 %
                       

    (1)   Excludes early buy-out loans guaranteed by U.S. government agencies. Early buy-out loans are insured or guaranteed by the Federal Housing Administration or the U.S. Department of Veterans Affairs, subject to indemnifications and insurance limits for certain loans.

    Non-performing Loans Rollforward, excluding early buy-out loans guaranteed by U.S. government agencies

      Three Months Ended
      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (In thousands)   2025       2024       2024       2024       2024  
                       
    Balance at beginning of period $ 170,823     $ 179,687     $ 174,251     $ 148,359     $ 139,030  
    Additions from becoming non-performing in the respective period   27,721       30,931       42,335       54,376       23,142  
    Additions from assets acquired in the respective period   —       —       189       —       —  
    Return to performing status   (1,207 )     (1,108 )     (362 )     (912 )     (490 )
    Payments received   (15,965 )     (12,219 )     (10,894 )     (9,611 )     (8,336 )
    Transfer to OREO and other repossessed assets   —       (17,897 )     (3,680 )     (6,945 )     (1,381 )
    Charge-offs, net   (8,600 )     (5,612 )     (21,211 )     (7,673 )     (14,810 )
    Net change for premium finance receivables   (382 )     (2,959 )     (941 )     (3,343 )     11,204  
    Balance at end of period $ 172,390     $ 170,823     $ 179,687     $ 174,251     $ 148,359  


    Other Real Estate Owned

      Three Months Ended
      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (In thousands)   2025       2024       2024       2024       2024  
    Balance at beginning of period $ 23,116     $ 13,682     $ 19,731     $ 14,538     $ 13,309  
    Disposals/resolved   —       (8,545 )     (9,729 )     (1,752 )     —  
    Transfers in at fair value, less costs to sell   —       17,979       3,680       6,945       1,436  
    Fair value adjustments   (491 )     —       —       —       (207 )
    Balance at end of period $ 22,625     $ 23,116     $ 13,682     $ 19,731     $ 14,538  
                       
      Period End
      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    Balance by Property Type:   2025       2024       2024       2024       2024  
    Residential real estate $ —     $ —     $ —     $ 161     $ 1,146  
    Commercial real estate   22,625       23,116       13,682       19,570       13,392  
    Total $ 22,625     $ 23,116     $ 13,682     $ 19,731     $ 14,538  

    TABLE 14: NON-INTEREST INCOME

      Three Months Ended Q1 2025 compared to
    Q4 2024    		 Q1 2025 compared to
    Q1 2024
      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (Dollars in thousands)   2025       2024       2024       2024       2024   $ Change   % Change $ Change   % Change
    Brokerage $ 4,757     $ 5,328     $ 6,139     $ 5,588     $ 5,556   $ (571 )   (11 )% $ (799 )   (14 )%
    Trust and asset management   29,285       33,447       31,085       29,825       29,259     (4,162 )   (12 )   26     0  
    Total wealth management   34,042       38,775       37,224       35,413       34,815     (4,733 )   (12 )   (773 )   (2 )
    Mortgage banking   20,529       20,452       15,974       29,124       27,663     77     0     (7,134 )   (26 )
    Service charges on deposit accounts   19,362       18,864       16,430       15,546       14,811     498     3     4,551     31  
    Gains (losses) on investment securities, net   3,196       (2,835 )     3,189       (4,282 )     1,326     6,031     NM   1,870     NM
    Fees from covered call options   3,446       2,305       988       2,056       4,847     1,141     50     (1,401 )   (29 )
    Trading (losses) gains, net   (64 )     (113 )     (130 )     70       677     49     (43 )   (741 )   NM
    Operating lease income, net   15,287       15,327       15,335       13,938       14,110     (40 )   (0 )   1,177     8  
    Other:                              
    Interest rate swap fees   2,269       3,360       2,914       3,392       2,828     (1,091 )   (32 )   (559 )   (20 )
    BOLI   796       1,236       1,517       1,351       1,651     (440 )   (36 )   (855 )   (52 )
    Administrative services   1,393       1,347       1,450       1,322       1,217     46     3     176     14  
    Foreign currency remeasurement (losses) gains   (183 )     (682 )     696       (145 )     (1,171 )   499     (73 )   988     (84 )
    Changes in fair value on EBOs and loans held-for-investment   383       129       518       604       (439 )   254     NM   822     NM
    Early pay-offs of capital leases   768       514       532       393       430     254     49     338     79  
    Miscellaneous   15,410       14,772       16,510       22,365       37,815     638     4     (22,405 )   (59 )
    Total Other   20,836       20,676       24,137       29,282       42,331     160     1     (21,495 )   (51 )
    Total Non-Interest Income $ 116,634     $ 113,451     $ 113,147     $ 121,147     $ 140,580   $ 3,183     3 % $ (23,946 )   (17 )%

    NM – Not meaningful.
    BOLI- Bank-owned life insurance.
    EBO- Early buy-out.


    TABLE 15: MORTGAGE BANKING

      Three Months Ended
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Sep 30,
    2024    		   Jun 30,
    2024    		   Mar 31,
    2024
    Originations:                  
    Retail originations $ 348,468     $ 483,424     $ 527,408     $ 544,394     $ 331,504  
    Veterans First originations   111,985       176,914       239,369       177,792       144,109  
    Total originations for sale (A) $ 460,453     $ 660,338     $ 766,777     $ 722,186     $ 475,613  
    Originations for investment   217,177       355,119       218,984       275,331       169,246  
    Total originations $ 677,630     $ 1,015,457     $ 985,761     $ 997,517     $ 644,859  
    As a percentage of originations for sale:                  
    Retail originations   76 %     73 %     69 %     75 %     70 %
    Veterans First originations   24       27       31       25       30  
    Purchases   77 %     65 %     72 %     83 %     75 %
    Refinances   23       35       28       17       25  
    Production Margin:                  
    Production revenue (B) (1) $ 9,941     $ 6,993     $ 13,113     $ 14,990     $ 13,435  
    Total originations for sale (A) $ 460,453     $ 660,338     $ 766,777     $ 722,186     $ 475,613  
    Add: Current period end mandatory interest rate lock commitments to fund originations for sale (2)   197,297       103,946       272,072       222,738       207,775  
    Less: Prior period end mandatory interest rate lock commitments to fund originations for sale (2)   103,946       272,072       222,738       207,775       119,624  
    Total mortgage production volume (C) $ 553,804     $ 492,212     $ 816,111     $ 737,149     $ 563,764  
    Production margin (B / C)   1.80 %     1.42 %     1.61 %     2.03 %     2.38 %
    Mortgage Servicing:                  
    Loans serviced for others (D) $ 12,402,352     $ 12,400,913     $ 12,253,361     $ 12,211,027     $ 12,051,392  
    Mortgage Servicing Rights (“MSR”), at fair value (E)   196,307       203,788       186,308       204,610       201,044  
    Percentage of MSRs to loans serviced for others (E / D)   1.58 %     1.64 %     1.52 %     1.68 %     1.67 %
    Servicing income $ 10,611     $ 10,731     $ 10,809     $ 10,586     $ 10,498  
    MSR Fair Value Asset Activity                  
    MSR – FV at Beginning of Period $ 203,788     $ 186,308     $ 204,610     $ 201,044     $ 192,456  
    MSR – current period capitalization   4,669       10,010       6,357       8,223       5,379  
    MSR – collection of expected cash flows – paydowns   (1,590 )     (1,463 )     (1,598 )     (1,504 )     (1,444 )
    MSR – collection of expected cash flows – payoffs and repurchases   (3,046 )     (4,315 )     (5,730 )     (4,030 )     (2,942 )
    MSR – changes in fair value model assumptions   (7,514 )     13,248       (17,331 )     877       7,595  
    MSR Fair Value at end of period $ 196,307     $ 203,788     $ 186,308     $ 204,610     $ 201,044  
    Summary of Mortgage Banking Revenue:                
    Operational:                  
    Production revenue (1) $ 9,941     $ 6,993     $ 13,113     $ 14,990     $ 13,435  
    MSR – Current period capitalization   4,669       10,010       6,357       8,223       5,379  
    MSR – Collection of expected cash flows – paydowns   (1,590 )     (1,463 )     (1,598 )     (1,504 )     (1,444 )
    MSR – Collection of expected cash flows – pay offs   (3,046 )     (4,315 )     (5,730 )     (4,030 )     (2,942 )
    Servicing Income   10,611       10,731       10,809       10,586       10,498  
    Other Revenue   (172 )     (51 )     (67 )     112       (91 )
    Total operational mortgage banking revenue $ 20,413     $ 21,905     $ 22,884     $ 28,377     $ 24,835  
    Fair Value:                  
    MSR – changes in fair value model assumptions $ (7,514 )   $ 13,248     $ (17,331 )   $ 877     $ 7,595  
    Gain (loss) on derivative contract held as an economic hedge, net   4,897       (11,452 )     6,892       (772 )     (2,577 )
    Changes in FV on early buy-out loans guaranteed by US Govt (HFS)   2,733       (3,249 )     3,529       642       (2,190 )
    Total fair value mortgage banking revenue $ 116     $ (1,453 )   $ (6,910 )   $ 747     $ 2,828  
    Total mortgage banking revenue $ 20,529     $ 20,452     $ 15,974     $ 29,124     $ 27,663  

    (1)   Production revenue represents revenue earned from the origination and subsequent sale of mortgages, including gains on loans sold and fees from originations, changes in other related financial instruments carried at fair value, processing and other related activities, and excludes servicing fees, changes in the fair value of servicing rights and changes to the mortgage recourse obligation and other non-production revenue.
    (2)   Certain volume adjusted for the estimated pull-through rate of the loan, which represents the Company’s best estimate of the likelihood that a committed loan will ultimately fund.


    TABLE 16    : NON-INTEREST EXPENSE

      Three Months Ended Q1 2025 compared to
    Q4 2024    		 Q1 2025 compared to
    Q1 2024
      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (Dollars in thousands)   2025       2024       2024       2024       2024   $ Change   % Change $ Change   % Change
    Salaries and employee benefits:                              
    Salaries $ 123,917     $ 120,969     $ 118,971     $ 113,860     $ 112,172   $ 2,948     2 % $ 11,745     10 %
    Commissions and incentive compensation   52,536       54,792       57,575       52,151       51,001     (2,256 )   (4 )   1,535     3  
    Benefits   35,073       36,372       34,715       32,530       32,000     (1,299 )   (4 )   3,073     10  
    Total salaries and employee benefits   211,526       212,133       211,261       198,541       195,173     (607 )   (0 )   16,353     8  
    Software and equipment   34,717       34,258       31,574       29,231       27,731     459     1     6,986     25  
    Operating lease equipment   10,471       10,263       10,518       10,834       10,683     208     2     (212 )   (2 )
    Occupancy, net   20,778       20,597       19,945       19,585       19,086     181     1     1,692     9  
    Data processing   11,274       10,957       9,984       9,503       9,292     317     3     1,982     21  
    Advertising and marketing   12,272       13,097       18,239       17,436       13,040     (825 )   (6 )   (768 )   (6 )
    Professional fees   9,044       11,334       9,783       9,967       9,553     (2,290 )   (20 )   (509 )   (5 )
    Amortization of other acquisition-related intangible assets   5,618       5,773       4,042       1,122       1,158     (155 )   (3 )   4,460     NM
    FDIC insurance   10,926       10,640       10,512       10,429       9,381     286     3     1,545     16  
    FDIC insurance – special assessment   —       —       —       —       5,156     —     —     (5,156 )   (100 )
    OREO expense, net   643       397       (938 )     (259 )     392     246     62     251     64  
    Other:                              
    Lending expenses, net of deferred origination costs   5,866       6,448       4,995       5,335       5,078     (582 )   (9 )   788     16  
    Travel and entertainment   5,270       8,140       5,364       5,340       4,597     (2,870 )   (35 )   673     15  
    Miscellaneous   27,685       24,502       25,408       23,289       22,825     3,183     13     4,860     21  
    Total other   38,821       39,090       35,767       33,964       32,500     (269 )   (1 )   6,321     19  
    Total Non-Interest Expense $ 366,090     $ 368,539     $ 360,687     $ 340,353     $ 333,145   $ (2,449 )   (1 )% $ 32,945     10 %

    NM – Not meaningful.


    TABLE 17: SUPPLEMENTAL NON-GAAP FINANCIAL MEASURES/RATIOS

    The accounting and reporting policies of Wintrust conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. These include taxable-equivalent net interest income (including its individual components), taxable-equivalent net interest margin (including its individual components), the taxable-equivalent efficiency ratio, tangible common equity ratio, tangible book value per common share, return on average tangible common equity, and pre-tax income, excluding provision for credit losses. Management believes that these measures and ratios provide users of the Company’s financial information a more meaningful view of the performance of the Company’s interest-earning assets and interest-bearing liabilities and of the Company’s operating efficiency. Other financial holding companies may define or calculate these measures and ratios differently.

    Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent basis (“FTE”). In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a FTE basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses), measures how much it costs to produce one dollar of revenue. Securities gains or losses are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity ratio and tangible book value per common share as useful measurements of the Company’s equity. The Company references the return on average tangible common equity as a measurement of profitability. Management considers pre-tax income, excluding provision for credit losses, as a useful measurement of the Company’s core net income.

      Three Months Ended
      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (Dollars and shares in thousands) 2025   2024   2024   2024   2024
    Reconciliation of Non-GAAP Net Interest Margin and Efficiency Ratio:
    (A) Interest Income (GAAP) $ 886,965     $ 913,501     $ 908,604     $ 849,979     $ 805,513  
    Taxable-equivalent adjustment:                  
    – Loans   2,206       2,352       2,474       2,305       2,246  
    – Liquidity Management Assets   690       716       668       567       550  
    – Other Earning Assets   3       2       2       3       5  
    (B) Interest Income (non-GAAP) $ 889,864     $ 916,571     $ 911,748     $ 852,854     $ 808,314  
    (C) Interest Expense (GAAP)   360,491       388,353       406,021       379,369       341,319  
    (D) Net Interest Income (GAAP) (A minus C) $ 526,474     $ 525,148     $ 502,583     $ 470,610     $ 464,194  
    (E) Net Interest Income (non-GAAP) (B minus C) $ 529,373     $ 528,218     $ 505,727     $ 473,485     $ 466,995  
    Net interest margin (GAAP)   3.54 %     3.49 %     3.49 %     3.50 %     3.57 %
    Net interest margin, fully taxable-equivalent (non-GAAP)   3.56       3.51       3.51       3.52       3.59  
    (F) Non-interest income $ 116,634     $ 113,451     $ 113,147     $ 121,147     $ 140,580  
    (G) Gains (losses) on investment securities, net   3,196       (2,835 )     3,189       (4,282 )     1,326  
    (H) Non-interest expense   366,090       368,539       360,687       340,353       333,145  
    Efficiency ratio (H/(D+F-G))   57.21 %     57.46 %     58.88 %     57.10 %     55.21 %
    Efficiency ratio (non-GAAP) (H/(E+F-G))   56.95       57.18       58.58       56.83       54.95  
      Three Months Ended
      Mar 31,   Dec 31,   Sep 30,   Jun 30,   Mar 31,
    (Dollars and shares in thousands) 2025   2024   2024   2024   2024
    Reconciliation of Non-GAAP Tangible Common Equity Ratio:
    Total shareholders’ equity (GAAP) $ 6,600,537     $ 6,344,297     $ 6,399,714     $ 5,536,628     $ 5,436,400  
    Less: Non-convertible preferred stock (GAAP)   (412,500 )     (412,500 )     (412,500 )     (412,500 )     (412,500 )
    Less: Intangible assets (GAAP)   (913,004 )     (918,632 )     (924,646 )     (676,562 )     (677,911 )
    (I) Total tangible common shareholders’ equity (non-GAAP) $ 5,275,033     $ 5,013,165     $ 5,062,568     $ 4,447,566     $ 4,345,989  
    (J) Total assets (GAAP) $ 65,870,066     $ 64,879,668     $ 63,788,424     $ 59,781,516     $ 57,576,933  
    Less: Intangible assets (GAAP)   (913,004 )     (918,632 )     (924,646 )     (676,562 )     (677,911 )
    (K) Total tangible assets (non-GAAP) $ 64,957,062     $ 63,961,036     $ 62,863,778     $ 59,104,954     $ 56,899,022  
    Common equity to assets ratio (GAAP) (L/J)   9.4 %     9.1 %     9.4 %     8.6 %     8.7 %
    Tangible common equity ratio (non-GAAP) (I/K)   8.1       7.8       8.1       7.5       7.6  
    Reconciliation of Non-GAAP Tangible Book Value per Common Share:
    Total shareholders’ equity $ 6,600,537     $ 6,344,297     $ 6,399,714     $ 5,536,628     $ 5,436,400  
    Less: Preferred stock   (412,500 )     (412,500 )     (412,500 )     (412,500 )     (412,500 )
    (L) Total common equity $ 6,188,037     $ 5,931,797     $ 5,987,214     $ 5,124,128     $ 5,023,900  
    (M) Actual common shares outstanding   66,919       66,495       66,482       61,760       61,737  
    Book value per common share (L/M) $ 92.47     $ 89.21     $ 90.06     $ 82.97     $ 81.38  
    Tangible book value per common share (non-GAAP) (I/M)   78.83       75.39       76.15       72.01       70.40  
                       
    Reconciliation of Non-GAAP Return on Average Tangible Common Equity:
    (N) Net income applicable to common shares $ 182,048     $ 178,371     $ 163,010     $ 145,397     $ 180,303  
    Add: Intangible asset amortization   5,618       5,773       4,042       1,122       1,158  
    Less: Tax effect of intangible asset amortization   (1,421 )     (1,547 )     (1,087 )     (311 )     (291 )
    After-tax intangible asset amortization $ 4,197     $ 4,226     $ 2,955     $ 811     $ 867  
    (O) Tangible net income applicable to common shares (non-GAAP) $ 186,245     $ 182,597     $ 165,965     $ 146,208     $ 181,170  
    Total average shareholders’ equity $ 6,460,941     $ 6,418,403     $ 5,990,429     $ 5,450,173     $ 5,440,457  
    Less: Average preferred stock   (412,500 )     (412,500 )     (412,500 )     (412,500 )     (412,500 )
    (P) Total average common shareholders’ equity $ 6,048,441     $ 6,005,903     $ 5,577,929     $ 5,037,673     $ 5,027,957  
    Less: Average intangible assets   (916,069 )     (921,438 )     (833,574 )     (677,207 )     (678,731 )
    (Q) Total average tangible common shareholders’ equity (non-GAAP) $ 5,132,372     $ 5,084,465     $ 4,744,355     $ 4,360,466     $ 4,349,226  
    Return on average common equity, annualized (N/P)   12.21 %     11.82 %     11.63 %     11.61 %     14.42 %
    Return on average tangible common equity, annualized (non-GAAP) (O/Q)   14.72       14.29       13.92       13.49       16.75  
                       
    Reconciliation of Non-GAAP Pre-Tax, Pre-Provision Income:    
    Income before taxes $ 253,055     $ 253,081     $ 232,709     $ 211,343     $ 249,956  
    Add: Provision for credit losses   23,963       16,979       22,334       40,061       21,673  
    Pre-tax income, excluding provision for credit losses (non-GAAP) $ 277,018     $ 270,060     $ 255,043     $ 251,404     $ 271,629  

    WINTRUST SUBSIDIARIES

    Wintrust is a financial holding company whose common stock is traded on the Nasdaq Global Select Market (Nasdaq: WTFC) that operates bank retail locations in the greater Chicago, southern Wisconsin, west Michigan, northwest Indiana, and southwest Florida market areas. Its 16 community bank subsidiaries are: Barrington Bank & Trust Company, N.A., Beverly Bank & Trust Company, N.A., Crystal Lake Bank & Trust Company, N.A., Hinsdale Bank & Trust Company, N.A., Lake Forest Bank & Trust Company, N.A., Libertyville Bank & Trust Company, N.A., Macatawa Bank, N.A., Northbrook Bank & Trust Company, N.A., Old Plank Trail Community Bank, N.A., Schaumburg Bank & Trust Company, N.A., St. Charles Bank & Trust Company, N.A., State Bank of The Lakes, N.A., Town Bank, N.A., Village Bank & Trust, N.A., Wheaton Bank & Trust Company, N.A., and Wintrust Bank, N.A.

    Additionally, the Company operates various non-bank businesses:

    • FIRST Insurance Funding and Wintrust Life Finance, each a division of Lake Forest Bank & Trust Company, N.A., serve commercial and life insurance loan customers, respectively, throughout the United States.
    • First Insurance Funding of Canada serves commercial insurance loan customers throughout Canada.
    • Tricom, Inc. of Milwaukee provides high-yielding, short-term accounts receivable financing and value-added out-sourced administrative services, such as data processing of payrolls, billing and cash management services, to temporary staffing service clients located throughout the United States.
    • Wintrust Mortgage, a division of Barrington Bank & Trust Company, N.A., engages primarily in the origination and purchase of residential mortgages for sale into the secondary market through origination offices located throughout the United States. Loans are also originated nationwide through relationships with wholesale and correspondent offices.
    • Wintrust Investments, LLC is a broker-dealer providing a full range of private client and brokerage services to clients and correspondent banks located primarily in the Midwest.
    • Great Lakes Advisors LLC provides money management services and advisory services to individual accounts.
    • Wintrust Private Trust Company, N.A., a trust subsidiary, allows Wintrust to service customers’ trust and investment needs at each banking location.
    • Wintrust Asset Finance offers direct leasing opportunities.
    • CDEC provides Qualified Intermediary services (as defined by U.S. Treasury regulations) for taxpayers seeking to structure tax-deferred like-kind exchanges under Internal Revenue Code Section 1031.

    FORWARD-LOOKING STATEMENTS

    This document contains forward-looking statements within the meaning of federal securities laws. Forward-looking information can be identified through the use of words such as “intend,” “plan,” “project,” “expect,” “anticipate,” “believe,” “estimate,” “contemplate,” “possible,” “will,” “may,” “should,” “would” and “could.” Forward-looking statements and information are not historical facts, are premised on many factors and assumptions, and represent only management’s expectations, estimates and projections regarding future events. Similarly, these statements are not guarantees of future performance and involve certain risks and uncertainties that are difficult to predict, and which may include, but are not limited to, those listed below and the Risk Factors discussed under Item 1A of the Company’s 2024 Annual Report on Form 10-K and in any of the Company’s subsequent SEC filings. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, the performance of its loan portfolio, the expected amount of future credit reserves and charge-offs, delinquency trends, growth plans, regulatory developments, securities that the Company may offer from time to time, and management’s long-term performance goals, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events, the Company’s business and growth strategies, including future acquisitions of banks, specialty finance or wealth management businesses, internal growth and plans to form additional de novo banks or branch offices. Actual results could differ materially from those addressed in the forward-looking statements as a result of numerous factors, including the following:

    • economic conditions and events that affect the economy, housing prices, the job market and other factors that may adversely affect the Company’s liquidity and the performance of its loan portfolios, including an actual or threatened U.S. government debt default or rating downgrade, particularly in the markets in which it operates;
    • negative effects suffered by us or our customers resulting from changes in U.S. or international trade policies;
    • the extent of defaults and losses on the Company’s loan portfolio, which may require further increases in its allowance for credit losses;
    • estimates of fair value of certain of the Company’s assets and liabilities, which could change in value significantly from period to period;
    • the financial success and economic viability of the borrowers of our commercial loans;
    • commercial real estate market conditions in the Chicago metropolitan area and southern Wisconsin;
    • the extent of commercial and consumer delinquencies and declines in real estate values, which may require further increases in the Company’s allowance for credit losses;
    • inaccurate assumptions in our analytical and forecasting models used to manage our loan portfolio;
    • changes in the level and volatility of interest rates, the capital markets and other market indices that may affect, among other things, the Company’s liquidity and the value of its assets and liabilities;
    • the interest rate environment, including a prolonged period of low interest rates or rising interest rates, either broadly or for some types of instruments, which may affect the Company’s net interest income and net interest margin, and which could materially adversely affect the Company’s profitability;
    • competitive pressures in the financial services business which may affect the pricing of the Company’s loan and deposit products as well as its services (including wealth management services), which may result in loss of market share and reduced income from deposits, loans, advisory fees and income from other products;
    • failure to identify and complete favorable acquisitions in the future or unexpected losses, difficulties or developments related to the Company’s recent or future acquisitions;
    • unexpected difficulties and losses related to FDIC-assisted acquisitions;
    • harm to the Company’s reputation;
    • any negative perception of the Company’s financial strength;
    • ability of the Company to raise additional capital on acceptable terms when needed;
    • disruption in capital markets, which may lower fair values for the Company’s investment portfolio;
    • ability of the Company to use technology to provide products and services that will satisfy customer demands and create efficiencies in operations and to manage risks associated therewith;
    • failure or breaches of our security systems or infrastructure, or those of third parties;
    • security breaches, including denial of service attacks, hacking, social engineering attacks, malware intrusion and similar events or data corruption attempts and identity theft;
    • adverse effects on our information technology systems, or those of third parties, resulting from failures, human error or cyberattacks (including ransomware);
    • adverse effects of failures by our vendors to provide agreed upon services in the manner and at the cost agreed, particularly our information technology vendors;
    • increased costs as a result of protecting our customers from the impact of stolen debit card information;
    • accuracy and completeness of information the Company receives about customers and counterparties to make credit decisions;
    • ability of the Company to attract and retain senior management experienced in the banking and financial services industries;
    • environmental liability risk associated with lending activities;
    • the impact of any claims or legal actions to which the Company is subject, including any effect on our reputation;
    • losses incurred in connection with repurchases and indemnification payments related to mortgages and increases in reserves associated therewith;
    • the loss of customers as a result of technological changes allowing consumers to complete their financial transactions without the use of a bank;
    • the soundness of other financial institutions and the impact of recent failures of financial institutions, including broader financial institution liquidity risk and concerns;
    • the expenses and delayed returns inherent in opening new branches and de novo banks;
    • liabilities, potential customer loss or reputational harm related to closings of existing branches;
    • examinations and challenges by tax authorities, and any unanticipated impact of the Tax Act;
    • changes in accounting standards, rules and interpretations, and the impact on the Company’s financial statements;
    • the ability of the Company to receive dividends from its subsidiaries;
    • the impact of the Company’s transition from LIBOR to an alternative benchmark rate for current and future transactions;
    • a decrease in the Company’s capital ratios, including as a result of declines in the value of its loan portfolios, or otherwise;
    • legislative or regulatory changes, particularly changes in regulation of financial services companies and/or the products and services offered by financial services companies;
    • changes in laws, regulations, rules, standards and contractual obligations regarding data privacy and cybersecurity;
    • a lowering of our credit rating;
    • changes in U.S. monetary policy and changes to the Federal Reserve’s balance sheet, including changes in response to persistent inflation or otherwise;
    • regulatory restrictions upon our ability to market our products to consumers and limitations on our ability to profitably operate our mortgage business;
    • increased costs of compliance, heightened regulatory capital requirements and other risks associated with changes in regulation and the regulatory environment;
    • the impact of heightened capital requirements;
    • increases in the Company’s FDIC insurance premiums, or the collection of special assessments by the FDIC;
    • delinquencies or fraud with respect to the Company’s premium finance business;
    • credit downgrades among commercial and life insurance providers that could negatively affect the value of collateral securing the Company’s premium finance loans;
    • the Company’s ability to comply with covenants under its credit facility;
    • fluctuations in the stock market, which may have an adverse impact on the Company’s wealth management business and brokerage operation; and
    • widespread outages of operational, communication, or other systems, whether internal or provided by third parties, natural or other disasters (including acts of terrorism, armed hostilities and pandemics), and the effects of climate change.

    Therefore, there can be no assurances that future actual results will correspond to these forward-looking statements. The reader is cautioned not to place undue reliance on any forward-looking statement made by the Company. Any such statement speaks only as of the date the statement was made or as of such date that may be referenced within the statement. The Company undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events after the date of the press release. Persons are advised, however, to consult further disclosures management makes on related subjects in its reports filed with the Securities and Exchange Commission and in its press releases.

    CONFERENCE CALL, WEBCAST AND REPLAY

    The Company will hold a conference call on Tuesday, April 22, 2025 at 9:00 a.m. (CDT) regarding first quarter 2025 earnings results. Individuals interested in participating in the call by addressing questions to management should register for the call to receive the dial-in numbers and unique PIN at the Conference Call Link included within the Company’s press release dated March 31, 2025 available at the Investor Relations, Investor News and Events, Press Releases link on its website at https://www.wintrust.com. A separate simultaneous audio-only webcast link is included within the press release referenced above. Registration for and a replay of the audio-only webcast with an accompanying slide presentation will be available at https://www.wintrust.com, Investor Relations, Investor News and Events, Presentations & Conference Calls. The text of the first quarter 2025 earnings press release will also be available on the home page of the Company’s website at https://www.wintrust.com and at the Investor Relations, Investor News and Events, Press Releases link on its website.

    FOR MORE INFORMATION CONTACT:
    Timothy S. Crane, President & Chief Executive Officer
    David A. Dykstra, Vice Chairman & Chief Operating Officer
    (847) 939-9000
    Web site address: www.wintrust.com

    The MIL Network –

  • MIL-OSI Security: Owner of Pharmaceutical Company Pleads Guilty to Unlawful Distribution of $60 Million in Diverted HIV Drugs

    Source: Office of United States Attorneys

    MIAMI – Adam Brosius, 60 of Delray Beach, pleaded guilty in connection with his role in a nationwide scheme to unlawfully distribute misbranded and adulterated HIV drugs to unsuspecting patients.

    According to court documents, Brosius was a part owner of Safe Chain Solutions LLC (“Safe Chain”), a wholesale distributor of pharmaceuticals based in Cambridge, Maryland, that purported to sell legitimate prescription drugs to pharmacies throughout the country, including expensive HIV medication. 

    In connection with his guilty plea, Brosius admitted that he and his co-conspirators illegally acquired HIV drugs that had been diverted from the regulated pharmaceutical distribution chain by various means.  One common method of prescription drug diversion involved buying bottles of supposed prescription HIV medication from individuals on the street, repackaging and relabeling the bottles, and then reselling the drugs to Safe Chain at steeply discounted prices with falsified documentation concealing the drugs’ true origin.  Brosius and his co-conspirators were notified of the false documentation accompanying these drugs but continued purchasing the steeply discounted HIV drugs and reselling them to pharmacy customers, which dispensed the diverted drugs to unsuspecting patients.  According to court documents, at times patients received bottles labeled as their prescription medication but which contained a different drug entirely, with one patient passing out and remaining unconscious for 24 hours after taking an anti-psychotic drug thinking it was his prescribed HIV medication.

    Sentencing is set for August 29, 2025 in Fort Lauderdale before United States District Court Judge William P. Dimitrouleas.  Brosius pleaded guilty to conspiracy to commit wire fraud and faces up to 20 years in prison. 

    U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, Acting Special Agent in Charge Jesus Barranco of the United States Department of Health and Human Services, Office of Inspector General, Miami Regional Office, and Acting Special Agent in Charge Brett Skiles of the FBI, Miami Field Office, made the announcement.

    Assistant United States Attorney Alexander Thor Pogozelski of the Southern District of Florida and Trial Attorney Jacqueline DerOvanesian of the Department of Justice are prosecuting the case. 

    You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.

    Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-cr-20255.

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    MIL Security OSI –

  • MIL-OSI Security: 45th Anniversary of the Joint Terrorism Task Force

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    Joint Terrorism Task Forces (JTTF) can be found at each of the FBI’s 55 field offices and many of their smaller offices—around 280 locations in all. FBI Atlanta organized its JTTF in 1994. The FBI Atlanta JTTF has representatives positioned around the state of Georgia.

    JTTFs gather trained investigators, intelligence analysts, linguists, and tactical experts from federal, state, local, territorial, and tribal law enforcement and intelligence agencies. Task force members share intelligence and investigative leads and respond to threats and incidents.

    “We rely on our law enforcement partners to help keep our communities safe,” said Paul Brown, special agent in charge of FBI Atlanta. “All of our partners bring their special skills and expertise to these teams, making us all that much stronger.”

    The FBI’s JTTF model dates to 1979, when the New York Police Department and the FBI’s New York Field Office created a joint task force to tackle violent bank robberies. They imitated the model in 1980, when terrorist bombings, bomb threats, and other violence plagued the city and announced the formation of the first JTTF in April 1980.

    After the 9/11 attacks, FBI leadership directed all FBI field offices to establish a JTTF. In addition, the FBI established its National Joint Terrorism Task Force to support the local task forces in June 2002. The NJTTF, at FBI Headquarters, enhances communication, coordination, and cooperation from partner agencies.

    JTTFs have disrupted dozens of plots in the past four decades.

    FBI Atlanta counts numerous disruptions of its own, including a plan to attack the White House in 2020. Thanks to a tip from a member of the Atlanta community, Hasher Jallal Taheb was captured and sentenced to 15 years in prison.

    https://www.justice.gov/archives/opa/pr/forsyth-man-sentenced-attempted-attack-white-house

    The FBI Atlanta JTTF also investigated the Jihadists of Georgia case, where two men living in Georgia made videos of the U.S. Capitol and other Washington, D.C., landmarks with plans to travel and attend a terrorist training camp.

    https://archives.fbi.gov/archives/news/stories/2009/december/jihadists_121509
    https://archives.fbi.gov/archives/news/stories/2009/december/jihadists_12170 .

    MIL Security OSI –

  • MIL-OSI Security: Former DOC Case Manager Pleads Guilty to Bribery in Smuggling Narcotics and Cigarettes for an Inmate

    Source: Office of United States Attorneys

    WASHINGTON – Herbert Baylor, 68, of the District, pleaded guilty today in U.S. District Court to one count of bribery in connection with a cigarettes and narcotics smuggling scheme at a facility operated by the District of Columbia Department of Corrections (DOC).

                The plea was announced by U.S. Attorney Edward R. Martin Jr., Special Agent in Charge Sean Ryan of the FBI Washington Field Office Criminal and Cyber Division, and Chief Investigator Kevin L. Hammond of the D.C. Department of Corrections Office of Investigative Services.

                The Honorable Tanya Chutkan scheduled sentencing for Aug. 11, 2025.

                A co-defendant, Pamela Porter, 56, of Washington D.C., pleaded guilty on April 17, 2025, to bribery in connection to her participation in the smuggling scheme.

                According to court documents, Baylor was a case manager employed by DOC to assist and manage inmates housed at the Correctional Treatment Facility (CTF), a specialized medium security facility that houses inmates receiving specialized medical treatment or monitoring related to substance dependencies. 

                From December 19, 2022, through September 23, 2024, Baylor’s duties included helping with the administrative pre-trial and trial needs of inmates, including facilitating communication with their attorneys or social workers.

                Baylor worked as Inmate-1’s case worker at CTF. Beginning in October 2023, Baylor agreed with Inmate-1 and others to smuggle contraband into CTF in exchange for money. Specifically, Inmate-1 directed his non-incarcerated associates, including Pamela Porter, to send CashApp payments to Baylor. Baylor then hid on himself cigarettes he had purchased or controlled substances received from Inmate-1’s associates, in order to clear security at CTF. Once through security, Baylor brought Inmate-1 to his office and provided him with the contraband. Inmate-1 then distributed the contraband to other inmates at CTF in exchange for money. As part of this scheme, Porter sent Baylor $1,200. In total, Baylor received $6,245 between October 20, 2023, and June 21, 2024.

                On September 19, 2024, Inmate-1 asked Baylor if Inmate-1 could call his attorney to talk about an appeal. Baylor authorized the inmate’s request. But instead of calling an attorney, Inmate-1 called Individual-1 to set up the delivery of prohibited objects to be smuggled into CTF. Baylor agreed to smuggle Suboxone strips into the CTF facility for Inmate-1. Suboxone strips contain Buprenorphine—a Schedule III narcotic drug.

                On September 23, 2024, Baylor met Individual-1 in the parking lot of CTF. Baylor accepted $1,000 in cash from Individual-1 and received a cigarette carton Baylor believed to be filled with Suboxone strips. Following the meeting with Individual-1, Baylor placed the $1,000 in his personal vehicle. He put the cigarette carton inside his underwear. Baylor went through security at the entrance to CTF and entered the facility. At that time, he was arrested.

                As a DOC employee, Baylor’s conduct was governed by the DOC’s Contraband Control policy which states that trafficking contraband of any kind to inmates is strictly prohibited. The policy describes any illegal drug or controlled substance and any tobacco product as major contraband. Additionally, federal law makes it a crime to provide “prohibited objects” to an inmate. Prohibited objects include any controlled substance or any object that threatens “the order, discipline, or security of a prison, or the life, health, or safety of any individual.”

                This case was investigated by the FBI’s Washington Field Office and the D.C. Department of Corrections Office of Investigative Services. It is being prosecuted by Assistant U.S. Attorney Joshua Gold.

    25cr87

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    MIL Security OSI –

  • MIL-OSI Security: Miami Executive Pleads Guilty to Massive Fraud Scheme

    Source: Office of United States Attorneys

    Earlier today, in federal court in Brooklyn, Pushpesh Kumar Baid, also known as “PK Jain,” pleaded guilty to conspiracy to commit wire fraud in connection with a scheme to defraud investors in Tradepay Capital LLC (Tradepay), a purported factoring company.  The proceeding was held before United States Magistrate Judge Lois Bloom.  When sentenced, Baid faces a maximum sentence of 20 years’ imprisonment, as well as restitution of over $35 million and forfeiture of over $2.6 million.

    John J. Durham, United States Attorney for the Eastern District of New York, and Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.

    “Through a complex web of shell companies, straw bank accounts, fraudulent documents, and other lies, Baid and his co-conspirators deceived their victims into investing tens of millions of dollars into a business that did not exist,” stated United States Attorney Durham.  “Today’s plea demonstrates that my Office will hold accountable fraudsters like Baid who enrich themselves at their investors’ expense.”   

    Mr. Durham expressed his appreciation to the Internal Revenue Service, Criminal Investigations for its work on the case.

    As set forth in court filings, Baid was the business head of Tradepay, which purported to be an international factoring business run by an executive team experienced in factoring invoices in particular industries and geographic regions.  Factoring involves the sale of an invoice to a third party at a discount.  In a factoring transaction, the seller of an invoice obtains immediate funding from the buyer of the invoice, and the buyer of the invoice makes a profit when the invoice is paid in full.

    Between April 2017 and October 2019, Baid and his co-conspirators implemented a scheme to defraud investors in Tradepay by making it appear that Tradepay was a legitimate and successful business when it was, in fact, an elaborate scam.  For example, the hundreds of invoices from various businesses that Tradepay purported to be factoring were fraudulent and included fake signatures for both sides of the transactions.  Baid and his co-conspirators also funneled millions of dollars of investors’ funds—which they represented would be sent to Tradepay’s business partners—into a sprawling network of bank accounts that Baid controlled through shell entities and straw signatories.  From those accounts, Baid and his co-conspirators spent millions of dollars on personal expenses, including cash withdrawals and purchases of luxury cars and watches.  Baid even lied about his identity, concealing his real name from investors in order to obscure the fact that he was wanted for criminal offenses abroad.

    Investors in Tradepay initially received payments on the invoices, which led them to contribute increasingly large sums of capital.  By approximately July 2019, however, the payments on the invoices stopped, resulting in roughly $35 million in losses.

    As part of his plea, Baid also admitted to defrauding investors in Luxestreet Inc., formerly known as Asset Capital Partners LLC (Luxestreet), and agreed to pay restitution to Luxestreet’s investors.  Baid claimed that Luxestreet operated like a pawn shop for high end goods, including luxury watches.  In reality, Luxestreet contracts were forged and the physical watches held by the company were mere knockoffs.  

    The government’s case is being handled by the Office’s Business and Securities Fraud Section.  Assistant United States Attorneys Dylan A. Stern, Benjamin Weintraub, and Molly Delaney are in charge of the prosecution, with assistance from Paralegal Specialist Sarah Burn.

    The Defendant:

    Pushpesh Kumar Baid (also known as “PK Jain”)
    Age:  44
    Miami, Florida

    E.D.N.Y. Docket No. 21-CR-367 (DC)

    MIL Security OSI –

  • MIL-OSI Security: Detroit Man Pleads Guilty to Role in Huntington Methamphetamine Trafficking Organization

    Source: Office of United States Attorneys

    HUNTINGTON, W.Va. – Mark Lawrence Lowe, also known as “Cell,” 24, of Detroit, Michigan, pleaded guilty today to aiding and abetting the possession with intent to distribute 50 grams or more of methamphetamine and 40 grams or more of fentanyl. Lowe admitted to his role in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine and fentanyl in the Huntington area.

    According to court documents and statements made in court, from at least September 2023 through November 2023, Lowe participated in the distribution of methamphetamine and fentanyl at various locations in the Southern District of West Virginia and elsewhere as part of the DTO.

    On September 9, 2023, Lowe and co-conspirator Paul Anthony Rucker were transporting fentanyl and methamphetamine from Huntington to Nitro when law enforcement conducted a traffic stop of their vehicle on Interstate 64 in Cabell County. An officer seized approximately 149 grams of fentanyl and 222.62 grams of methamphetamine from the vehicle during the traffic stop. As part of his guilty plea, Lowe admitted that he and Rucker intended to distribute the seized controlled substances.

    Lowe is scheduled to be sentenced on July 28, 2025, and faces a mandatory minimum of 10 years and up to life in prison, at least five years of supervised release, and a $10 million fine.

    Rucker, 47, of Nitro, was sentenced on July 15, 2024, to six years and six months in prison, to be followed by three years of supervised release, for aiding and abetting possession with intent to distribute quantities of methamphetamine and fentanyl.

    Lowe and Rucker are among 27 individuals indicted on charges alleging the DTO distributed methamphetamine and fentanyl transported from Detroit, Michigan, in Huntington and other locations within the Southern District of West Virginia.

    Lowe, Rucker and 22 other defendants have pleaded guilty, including one who pleaded guilty to a separate charges in lieu of the offenses alleged in the indictment. Charges against the remaining defendants are pending. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

    Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff’s Department, the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Postal Inspection Service. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.

    United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor are prosecuting the case.

    The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-180.

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    MIL Security OSI –

  • MIL-OSI Security: Serial Armed Robber Who Targeted Delivery Workers in DC, MD, Is Sentenced to 16 Years in Federal Prison

    Source: Office of United States Attorneys

    WASHINGTON – Rubin Raphael Bordeaux, 36, of the District, was sentenced today in U.S. District Court to 192 months in prison for his role a string of armed carjackings that targeted delivery workers in November 2023. At the height of the criminal spree, Bordeaux’s escalating violence culminated in a shooting, an eight-mile chase in an Amazon van, a vehicle collision, and a foot chase.

               The sentence was announced by U.S. Attorney Edward R. Martin Jr., ATF Special Agent in Charge Anthony Spotswood of the Bureau of Alcohol, Tobacco, Firearms, and Explosives – Washington Division, and FBI Special Agent in Charge Sean T. Ryan of the Washington Field Office Criminal and Cyber Division.

               Bordeaux pleaded guilty on September 12, 2024, to carjacking and to possessing a firearm during a crime of violence. In addition to the 192-month prison term, U.S. District Court Judge Jia M. Cobb ordered Bordeaux to serve three years of supervised release.

               According to court documents, Bordeaux and his co-defendants specifically targeted delivery drivers in a spree of armed carjackings and robberies over four days across the District of Columbia and Maryland. 

               On November 9, 2023, around 1:30 p.m., a UPS driver was in the back of her work truck in Upper Marlboro, Maryland sorting packages. As she was working, Bordeaux and a co-conspirator were lying in wait, planning to rob her at gunpoint. As the UPS driver continued her job, the co-conspirator saw his opportunity and, with a silver firearm in hand, jumped into the back of the UPS truck. The co-conspirator told the UPS driver to “calm down. I just need your wallet and keys.” He took the UPS driver’s keys and ordered her to show him how to operate the UPS truck. In fear for her life, the UPS driver complied. The co-conspirator then threw the UPS driver’s phone in her direction and took off driving the truck. Bordeaux was not far behind. He followed the UPS truck in a tan pickup truck. Eventually Bordeaux and his co-conspirator stopped to offload packages from the UPS truck and abandoned the vehicle in Upper Marlboro, Maryland. 

                Just one hour later, Bordeaux and a co-conspirator struck again in Oxon Hill, Maryland. This time, they targeted a FedEx driver who was finishing a break. Bordeaux and the co-conspirator used their pickup truck to box-in the FedEx driver. Bordeaux jumped out of the pickup, quickly approached the FedEx driver, displayed a revolver, and demanded the keys. The FedEx driver gave up the company truck, and Bordeaux, followed by his co-conspirator in the tan pickup truck, drove off. Law enforcement recovered the FedEx truck in Washington, D.C., after it had been stripped of multiple packages. 

               Four days later, on November 13, 2023, Bordeaux and a co-conspirator targeted another work vehicle. On that day, around 5:24 a.m., an Amtrak driver was seated in the rear passenger seat of a conspicuously marked Amtrak truck. The Amtrak driver and his two coworkers, who were also in the vehicle, were planning to start their workday with breakfast from a restaurant. While waiting inside the running vehicle, the Amtrak driver noticed that a man with a mask had walked up to the truck. Believing this person was a coworker, the Amtrak driver got out of the truck. The masked individual was not his coworker. 

               Bordeaux ordered the Amtrak driver to “give me the truck.” When the Amtrak driver was slow to react, Bordeaux brandished a black gun and demanded again, “give me the truck.” The Amtrak driver surrendered the vehicle. Bordeaux got into the driver seat and drove away. As he did so, he was followed by a gray sedan. 

               Bordeaux later abandoned the truck in Washington, D.C. after causing $27,883 in damage to the vehicle during the short time he had it in his possession. 

               The next day, on November 14, 2023, Bordeaux and his co-conspirators targeted a shopper and her young child in a department store parking lot in Forestville, Maryland. An individual approached the woman at her car, demanded the keys to her vehicle and then forcefully removed the keys from her hands. The individual fled with the car toward Washington, D.C. 

               Later that day, Bordeaux and three other individuals left the shopper’s vehicle parked in an area of Southeast D.C. As the four walked away, they came upon an Amazon delivery driver, who became Bordeaux’s next target. The Amazon driver was walking to his work van when Bordeaux approached him in the road. A second person from Bordeaux’s group simultaneously walked towards the Amazon driver, who began to run. Bordeaux fired a shot in the Amazon driver’s direction while the other individual also fired at the Amazon driver. Bordeaux’s bullet barely missed the driver, who then stopped and surrendered. Bordeaux went through the Amazon driver’s pockets, demanded “give me them f—- keys” and threatened the driver with “do you want to die?” Bordeaux located the keys and fled in the van while his accomplice ran off in the opposite direction. 

               Behind the wheel of the Amazon van, Bordeaux led the police on an eight-mile-long chase crossing from the District of Columbia into Maryland. While trying to make his getaway, Bordeaux struck numerous vehicles, among them a police car. Once he realized he could not shake the police, Bordeaux stopped the vehicle on a sidewalk in Capitol Heights, Maryland. He attempted to run from law enforcement on foot but was quickly stopped. The keys to the shopper’s carjacked Honda were recovered from Bordeaux’s pocket.

             This case was investigated by the FBI Violent Crimes Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives Washington Field Office, the Prince George’s County Police Department, and the MPD. The matter is being prosecuted by Assistant U.S. Attorney Meredith Mayer-Dempsey, Special Assistant U.S. Attorney Emily Reeder-Ricchetti, and former Assistant U.S. Attorneys Omeed Ali Assefi and Jacqueline Yarbro.

    24cr76

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    MIL Security OSI –