Intelligence Agencies – Page 168

MIL-OSI Security: Pharmacist indicted in $2 million health care fraud scheme

Source: Office of United States Attorneys

McALLEN, Texas – A 48-year-old Edinburg resident has been taken into custody on charges of health care fraud and aggravated identity theft in connection with a scheme to defraud the Texas Medicaid Program, announced U.S. Attorney Nicholas J. Ganjei.

Cynthia Ann Herrera is set to make her initial appearance before U.S. Magistrate Judge Juan Alanis at 9 a.m.

The indictment, returned April 15 and unsealed upon her arrest, alleges she submitted or caused the submission of fraudulent claims to Medicaid for prescriptions that a doctor had never prescribed. Between 2018 and 2024, the claims resulted in more than $2 million in Medicaid payments, according to the charges. Herrera allegedly used the personal information of doctors without their consent to bill Medicaid for the prescriptions.

Herrera is charged with six counts of health care fraud, each carrying a possible 10-year maximum sentence and up to a $250,000 fine. She is also facing six counts of aggravated identity theft. If convicted, she faces a mandatory two years which must be served consecutively to any other sentence imposed.

Department of Health and Human Services – Office of the Inspector General (OIG), FBI, Health and Human Services Commission – OIG, Texas Attorney General’s Medicaid Fraud Control Unit and Texas Department of Insurance conducted the investigation. Assistant U.S. Attorneys Sarina S. DiPiazza and Theodore Parran III are prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

MIL Security OSI –

April 18, 2025

MIL-OSI: Norwood Financial Corp announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

Quarterly Highlights:

Fully diluted EPS of $0.63, a 14.5% increase over the same period in 2024
Return on assets rises to over 1.00%.
Net interest margin increased 30 basis points vs. the prior quarter and 11 basis points over the prior year.
Loans grew at a 13.5% annualized rate during the first quarter.
Capital continues to improve on increased earnings and lower AOCI adjustment.

HONESDALE, Pa., April 17, 2025 (GLOBE NEWSWIRE) — Norwood Financial Corp (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, announced results for the three months March 31, 2025.

Jim Donnelly, President and Chief Executive Officer of Norwood Financial Corp and Wayne Bank, stated, “The actions that we took in December 2024 to improve our capital and earnings have given us a great start to 2025. The portfolio repositioning has improved our net interest margin. That, coupled with strong annualized growth in loans and deposits, put us on a positive trajectory for 2025. We continue to benefit from lower deposit costs together with higher assets yields and our deposit growth has allowed us to lower our use of wholesale borrowings.”

Mr. Donnelly continued, “The capital that we raised in December 2024, has strengthened our balance sheet and will allow our Company to better weather any headwinds that come with global uncertainty. Although we do not have any international business per se, we do have customers who may have exposure to developing trade conditions. Because we are a community bank we are contacting our customers to determine how we can best assist them, if necessary. Additionally, we are being prudent regarding the opportunities in front of us, taking the time to assess the effects of changing economic circumstances.”

Selected Financial Highlights

(dollars in thousands, except per share data)	Year-Over Year			Linked Quarter		Adjusted Linked Quarter¹
	3 Months Ended			3 Months Ended		3 Months Ended
	Mar-25	Mar-24	Change	Dec-24	Change	Dec-24	Change
Net interest income	17,857	14,710	3,147	16,625	1,232	16,625	1,232
Net interest spread (fte)	2.61%	2.08%	53 bps	2.31%	30 bps	2.31%	30 bps
Net interest margin (fte)	3.30%	2.80%	50 bps	3.04%	26 bps	3.04%	26 bps
Net income (loss)	5,773	4,433	1,340	(12,651)	18,424	3,119	2,654
Diluted earnings per share	0.63	0.55	0.08	-1.54	-2.09	0.38	0.25
Return on average assets	1.01%	0.80%	21 bps	-2.19%	320 bps	0.54%	47 bps
Return on tangible equity	12.40%	11.65%	75 bps	-30.77%	(4,317 bps)	7.59%	481 bps

1 – The above table includes non-GAAP financial measures excluding the one-time $20.0 million net realized loss incurred in the fourth quarter as a result of the repositioning of our investment portfolio. Please see “Non-GAAP Financial Measures” below for a reconciliation of all non-GAAP financial measures.

Discussion of financial results for the three months ended March 31, 2025:

The Company had net income of $5.8 million for the three months ended March 31, 2025, an increase $1.3 million over the same period last year.
Net interest income increased during the first quarter of 2025 compared to the first quarter of 2024 due to increases in asset yields which outpaced increases in yields on liabilities.
Correspondingly, the net interest margin in the first quarter of 2025 was 3.30% compared to 2.80% in the first quarter of 2024.
The efficiency ratio for the first quarter of 2025 was 59.7% compared to 70.6% in the first quarter of 2024.
As of March 31, 2025, total assets were $2.376 billion, compared to $2.260 billion at March 31, 2024, an increase of 5.07%.
Loans receivable were $1.771 billion at March 31 2025, compared to $1.621 billion at March 31, 2024, an increase of 9.24%.
Total deposits were $2.004 billion at March 31 2025, compared to $1.839 billion at March 31, 2024, an increase of 9.00%.
Tangible Common Equity was 8.16% as of March 31, 2025, versus 6.80% at March 31, 2024.
Tangible Book Value per share increased $0.81 from $19.85 at December 31, 2024 to $20.66 at March 31, 2025.

Norwood Financial Corp is the parent company of Wayne Bank, which operates from sixteen offices throughout Northeastern Pennsylvania and fourteen offices in Delaware, Sullivan, Ontario, Otsego and Yates Counties, New York. The Company’s stock trades on the Nasdaq Global Market under the symbol “NWFL”.

Non-GAAP Financial Measures

This release references adjusted net income, adjusted diluted earnings per share, adjusted return on average assets and adjusted return on tangible equity, all of which are non-GAAP (Generally Accepted Accounting Principles) financial measures. Adjusted values were derived by reversing the effect of loss on sale of securities in December 2024 along with the attendant tax effect. We believe the presentation of adjusted net income, adjusted diluted earnings per share, adjusted return on average assets and adjusted return on tangible equity ensures comparability of these measures as the portfolio restructuring is not something the Company expects to be a recurring event.

Adjusted Return on Average Assets
(Dollars in thousands)
	Three Months Ended
	December 31, 2024
Net (loss) income	$	(12,651)
Average assets		2,299,732
Return on average assets (annualized)		-2.19	%
Net (loss) income		(12,651)
Net realized losses on sale of securities		19,962
Tax effect at 21%		(4,192)
Adjusted Net Income (Non-GAAP)		3,119
Average assets		2,299,732
Adjusted return on average assets (annualized)
(Non-GAAP)		0.54	%


Adjusted Return on Average Tangible Shareholders’ Equity
(Dollars in thousands)

	Three Months Ended
	December 31, 2024
Net (loss) income	$	(12,651)
Average shareholders’ equity		192,981
Average intangible assets		29,424
Average tangible shareholders’ equity		163,557
Return on average tangible shareholders’ equity (annualized)		-30.77	%
Net (loss) income		(12,651)
Net realized losses on sale of securities		19,962
Tax effect at 21%		(4,192)
Adjusted Net Income (Non-GAAP)		3,119
Average tangible shareholders’ equity		163,557
Adjusted return on average shareholders’ equity (annualized)
(Non-GAAP)		7.59	%


Adjusted Earnings Per Share
(Dollars in thousands)

	Three Months Ended
	December 31, 2024
GAAP-Based Earnings Per Share, Basic	$	(1.54)
GAAP-Based Earnings Per Share, Diluted	$	(1.54)
Net (Loss) Income		(12,651)
Net realized losses on sale of securities		19,962
Tax effect at 21%		(4,192)
Adjusted Net Income (Non-GAAP)		3,119
Adjusted Earnings per Share, Basic (Non-GAAP)	$	0.38
Adjusted Earnings per Share, Diluted (Non-GAAP)	$	0.38

The following table reconciles average equity to average tangible equity:

	For the Period Ended
(dollars in thousands)	March 31
		2025			2024

Average equity	$	218,194		$	182,088
Average goodwill and other intangibles		(29,409	)		(29,476	)
Average tangible equity	$	188,785		$	152,612

Forward-Looking Statements

The Private Securities Litigation Reform Act of 1995 contains safe harbor provisions regarding forward-looking statements. When used in this discussion, the words “believes”, “anticipates”, “contemplates”, “expects”, “bode”, “future performance” and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Those risks and uncertainties include, among other things, changes in federal and state laws, changes in interest rates, our ability to maintain strong credit quality metrics, our ability to have future performance, our ability to control core operating expenses and costs, demand for real estate, government fiscal and trade policies, cybersecurity and general economic conditions. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Contact: John M. McCaffery
Executive Vice President &
Chief Financial Officer
NORWOOD FINANCIAL CORP
272-304-3003
www.waynebank.com


NORWOOD FINANCIAL CORP
Consolidated Balance Sheets
(dollars in thousands, except share and per share data)
(unaudited)
		March 31
		2025			2024
ASSETS
Cash and due from banks	$	31,729		$	19,519
Interest-bearing deposits with banks		43,678			92,444
Cash and cash equivalents		75,407			111,963

Securities available for sale		408,742			398,374
Loans receivable		1,771,269			1,621,448
Less: Allowance for credit losses		20,442			18,020
Net loans receivable		1,750,827			1,603,428
Regulatory stock, at cost		7,616			6,545
Bank premises and equipment, net		20,273			18,057
Bank owned life insurance		46,914			45,869
Foreclosed real estate owned		–			97
Accrued interest receivable		8,587			8,135
Deferred tax assets, net		17,859			21,642
Goodwill		29,266			29,266
Other intangible assets		136			202
Other assets		10,417			16,845
TOTAL ASSETS	$	2,376,044		$	2,260,423

LIABILITIES
Deposits:
Non-interest bearing demand	$	391,377		$	383,362
Interest-bearing		1,613,071			1,455,636
Total deposits		2,004,448			1,838,998
Short-term borrowings		–			60,055
Other borrowings		118,590			151,179
Accrued interest payable		13,864			11,737
Other liabilities		18,435			17,241
TOTAL LIABILITIES		2,155,337			2,079,210

STOCKHOLDERS’ EQUITY
Preferred Stock, no par value per share, authorized 5,000,000 shares		–			–
Common Stock, $.10 par value per share,
authorized: 20,000,000 shares,
issued: 2025: 9,489,398 shares, 2024: 8,310,847 shares		949			831
Surplus		126,785			97,893
Retained earnings		127,865			137,285
Treasury stock, at cost: 2025: 229,979 shares, 2024: 200,690 shares		(6,208	)		(5,397	)
Accumulated other comprehensive loss		(28,684	)		(49,399	)
TOTAL STOCKHOLDERS’ EQUITY		220,707			181,213

TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY	$	2,376,044		$	2,260,423


NORWOOD FINANCIAL CORP
Consolidated Statements of Income
(dollars in thousands, except per share data)
(unaudited)
	Three Months Ended March 31,
		2025			2024
INTEREST INCOME
Loans receivable, including fees	$	25,988		$	23,681
Securities		3,870			2,526
Other		226			731
Total Interest income		30,084			26,938

INTEREST EXPENSE
Deposits		10,748			10,110
Short-term borrowings		458			336
Other borrowings		1,021			1,782
Total Interest expense		12,227			12,228
NET INTEREST INCOME		17,857			14,710
PROVISION FOR (RELEASE OF) CREDIT LOSSES	$	857		$	(624	)
NET INTEREST INCOME AFTER PROVISION FOR (RELEASE OF) CREDIT LOSSES		17,000			15,334


OTHER INCOME
Service charges and fees		1,513			1,343
Income from fiduciary activities		325			238
Gains on sales of loans, net		47			6
Earnings and proceeds on life insurance policies		286			268
Other		180			151
Total other income		2,351			2,006

OTHER EXPENSES
Salaries and employee benefits		6,472			6,135
Occupancy, furniture and equipment		1,378			1,261
Data processing and related operations		1,085			1,022
Taxes, other than income		192			93
Professional fees		659			585
FDIC Insurance assessment		406			361
Foreclosed real estate		4			21
Amortization of intangibles		15			19
Other		1,853			2,235
Total other expenses		12,064			11,732

INCOME BEFORE TAX EXPENSE		7,287			5,608
INCOME TAX EXPENSE		1,514			1,175
NET INCOME	$	5,773		$	4,433

Basic earnings per share	$	0.63		$	0.55

Diluted earnings per share	$	0.63		$	0.55

NORWOOD FINANCIAL CORP
NET INTEREST MARGIN ANALYSIS
(dollars in thousands)

	For the Quarter Ended
	March 31, 2025								December 31, 2024								March 31, 2024
	Average						Average		Average						Average		Average						Average
	Balance			Interest			Rate		Balance			Interest			Rate		Balance			Interest			Rate
	(2)			(1)			(3)		(2)			(1)			(3)		(2)			(1)			(3)
Assets
Interest-earning assets:
Interest-bearing deposits with banks	$	20,802		$	226		4.41	%	$	46,629		$	574		4.90	%	$	53,930		$	730		5.44	%
Securities available for sale:
Taxable		408,427			3,623		3.60			404,777			2,434		2.39			402,275			2,147		2.15
Tax-exempt (1)		44,242			312		2.86			65,628			449		2.72			69,880			481		2.77
Total securities available for sale (1)		452,669			3,935		3.53			470,405			2,883		2.44			472,155			2,628		2.24
Loans receivable (1) (4) (5)		1,743,572			26,120		6.08			1,690,650			26,246		6.18			1,612,106			23,775		5.93
Total interest-earning assets		2,217,043			30,281		5.54			2,207,684			29,703		5.35			2,138,191			27,133		5.10
Non-interest earning assets:
Cash and due from banks		28,705								27,283								24,593
Allowance for credit losses		(20,154	)							(18,741	)							(19,096	)
Other assets		93,131								83,506								73,692
Total non-interest earning assets		101,682								92,048								79,189
Total Assets	$	2,318,725							$	2,299,732							$	2,217,380
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Interest-bearing demand and money market	$	546,884		$	2,801		2.08		$	528,330		$	3,017		2.27		$	449,825		$	2,311		2.07
Savings		211,905			142		0.27			209,362			162		0.31			235,545			250		0.43
Time		793,803			7,805		3.99			764,819			7,805		4.06			725,199			7,549		4.19
Total interest-bearing deposits		1,552,592			10,748		2.81			1,502,511			10,984		2.91			1,410,569			10,110		2.88
Short-term borrowings		44,297			458		4.19			46,267			348		2.99			57,997			336		2.33
Other borrowings		93,549			1,021		4.43			133,620			1,528		4.55			155,498			1,782		4.61
Total interest-bearing liabilities		1,690,438			12,227		2.93			1,682,398			12,860		3.04			1,624,064			12,228		3.03
Non-interest bearing liabilities:
Demand deposits		380,544								394,001								386,066
Other liabilities		29,549								30,352								25,162
Total non-interest bearing liabilities		410,093								424,353								411,228
Stockholders’ equity		218,194								192,981								182,088
Total Liabilities and Stockholders’ Equity	$	2,318,725							$	2,299,732							$	2,217,380
Net interest income/spread (tax equivalent basis)					18,054		2.61	%					16,843		2.31	%					14,905		2.08	%
Tax-equivalent basis adjustment					(197	)							(218	)							(195	)
Net interest income				$	17,857							$	16,625							$	14,710
Net interest margin (tax equivalent basis)							3.30	%							3.04	%							2.80	%


(1) Interest and yields are presented on a tax-equivalent basis using a marginal tax rate of 21%.
(2) Average balances have been calculated based on daily balances.
(3) Annualized
(4) Loan balances include non-accrual loans and are net of unearned income.
(5) Loan yields include the effect of amortization of deferred fees, net of costs.

NORWOOD FINANCIAL CORP
Financial Highlights (Unaudited)
(dollars in thousands, except per share data)

For the Three Months Ended March 31		2025			2024

Net interest income	$	17,857		$	14,710
Net income		5,773			4,433

Net interest spread (fully taxable equivalent)		2.61	%		2.08	%
Net interest margin (fully taxable equivalent)		3.30	%		2.80	%
Return on average assets		1.01	%		0.80	%
Return on average equity		10.73	%		9.79	%
Return on average tangible equity		12.40	%		11.68	%
Basic earnings per share	$	0.63		$	0.55
Diluted earnings per share	$	0.63		$	0.55

As of March 31		2025			2024

Total assets	$	2,376,044		$	2,260,423
Total loans receivable		1,771,269			1,621,448
Allowance for credit losses		20,442			18,020
Total deposits		2,004,448			1,838,998
Stockholders’ equity		220,707			181,213
Trust assets under management		198,761			202,020

Book value per share	$	23.84		$	22.34
Tangible book value per share	$	20.66		$	18.71
Equity to total assets		9.29	%		8.02	%
Allowance to total loans receivable		1.15	%		1.11	%
Nonperforming loans to total loans		0.45	%		0.23	%
Nonperforming assets to total assets		0.33	%		0.17	%

NORWOOD FINANCIAL CORP
Consolidated Balance Sheets (unaudited)
(dollars in thousands)
		March 31		December 31		September 30		June 30		March 31
		2025		2024		2024		2024		2024
ASSETS
Cash and due from banks	$	31,729	$	27,562	$	47,072	$	29,903	$	19,519
Interest-bearing deposits with banks		43,678		44,777		35,808		39,492		92,444
Cash and cash equivalents		75,407		72,339		82,880		69,395		111,963

Securities available for sale		408,742		397,846		396,891		397,578		398,374
Loans receivable		1,771,269		1,713,638		1,675,139		1,641,356		1,621,448
Less: Allowance for credit losses		20,442		19,843		18,699		17,807		18,020
Net loans receivable		1,750,827		1,693,795		1,656,440		1,623,549		1,603,428
Regulatory stock, at cost		7,616		13,366		6,329		6,443		6,545
Bank owned life insurance		46,914		46,657		46,382		46,121		45,869
Bank premises and equipment, net		20,273		19,657		18,503		18,264		18,057
Foreclosed real estate owned		–		–		–		–		97
Goodwill and other intangibles		29,402		29,418		29,433		29,449		29,468
Other assets		36,863		44,384		42,893		44,517		46,622
TOTAL ASSETS	$	2,376,044	$	2,317,462	$	2,279,751	$	2,235,316	$	2,260,423

LIABILITIES
Deposits:
Non-interest bearing demand	$	391,377	$	381,479	$	420,967	$	391,849	$	383,362
Interest-bearing deposits		1,613,071		1,477,684		1,434,284		1,419,323		1,455,636
Total deposits		2,004,448		1,859,163		1,855,251		1,811,172		1,838,998
Borrowings		118,590		214,862		197,412		210,422		211,234
Other liabilities		32,299		29,929		31,434		31,534		28,978
TOTAL LIABILITIES		2,155,337		2,103,954		2,084,097		2,053,128		2,079,210

STOCKHOLDERS’ EQUITY		220,707		213,508		195,654		182,188		181,213

TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY	$	2,376,044	$	2,317,462	$	2,279,751	$	2,235,316	$	2,260,423

NORWOOD FINANCIAL CORP
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)
		March 31			December 31			September 30			June 30			March 31
Three months ended		2025			2024			2024			2024			2024
INTEREST INCOME
Loans receivable, including fees	$	25,988		$	26,122		$	25,464		$	24,121		$	23,681
Securities		3,870			2,789			2,526			2,584			2,526
Other		226			574			497			966			731
Total interest income		30,084			29,485			28,487			27,671			26,938

INTEREST EXPENSE
Deposits		10,748			10,984			10,553			10,687			10,110
Borrowings		1,479			1,876			2,003			2,059			2,118
Total interest expense		12,227			12,860			12,556			12,746			12,228
NET INTEREST INCOME		17,857			16,625			15,931			14,925			14,710
PROVISION FOR (RELEASE OF) CREDIT LOSSES		857			1,604			1,345			347			(624	)
NET INTEREST INCOME AFTER (RELEASE OF) PROVISION
FOR CREDIT LOSSES		17,000			15,021			14,586			14,578			15,334

OTHER INCOME
Service charges and fees		1,513			1,595			1,517			1,504			1,343
Income from fiduciary activities		325			224			256			225			238
Net realized (losses) gains on sales of securities		–			(19,962	)		–			–			–
Gains on sales of loans, net		47			50			103			36			6
Gains on sales of foreclosed real estate owned		–			–			–			32			–
Earnings and proceeds on life insurance policies		286			275			261			253			268
Other		180			159			158			157			151
Total other income		2,351			(17,659	)		2,295			2,207			2,006

OTHER EXPENSES
Salaries and employee benefits		6,472			6,690			6,239			5,954			6,135
Occupancy, furniture and equipment, net		1,378			1,291			1,269			1,229			1,261
Foreclosed real estate		4			9			9			15			21
FDIC insurance assessment		406			335			339			309			361
Other		3,804			5,094			4,175			3,937			3,954
Total other expenses		12,064			13,419			12,031			11,444			11,732

INCOME BEFORE TAX (BENEFIT) EXPENSE		7,287			(16,057	)		4,850			5,341			5,608
INCOME TAX (BENEFIT) EXPENSE		1,514			(3,406	)		1,006			1,128			1,175
NET (LOSS) INCOME	$	5,773		$	(12,651	)	$	3,844		$	4,213		$	4,433

Basic (loss) earnings per share	$	0.63		$	(1.54	)	$	0.48		$	0.52		$	0.55

Diluted (loss) earnings per share	$	0.63		$	(1.54	)	$	0.48		$	0.52		$	0.55

Book Value per share	$	23.84		$	23.02		$	24.18		$	22.52		$	22.34
Tangible Book Value per share		20.66			19.85			20.54			18.88			18.71

Return on average assets (annualized)		1.01	%		-2.19	%		0.68	%		0.75	%		0.80	%
Return on average equity (annualized)		10.73	%		-26.08	%		8.09	%		9.41	%		9.79	%
Return on average tangible equity (annualized)		12.40	%		-30.77	%		9.58	%		11.26	%		11.68	%

Net interest spread (fte)		2.61	%		2.31	%		2.23	%		2.06	%		2.08	%
Net interest margin (fte)		3.30	%		3.04	%		2.99	%		2.80	%		2.80	%

Allowance for credit losses to total loans		1.15	%		1.16	%		1.12	%		1.08	%		1.11	%
Net charge-offs to average loans (annualized)		0.07	%		0.12	%		0.08	%		0.13	%		0.08	%
Nonperforming loans to total loans		0.45	%		0.46	%		0.47	%		0.47	%		0.23	%
Nonperforming assets to total assets		0.33	%		0.34	%		0.35	%		0.34	%		0.17	%

The MIL Network –

April 18, 2025

MIL-OSI Security: Former Corrections Officer Sentenced to Prison for Accepting Bribes in Exchange for Smuggling Narcotics Into Rikers Island

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

Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced that GHISLAINE BARRIENTOS, a former corrections officer, was sentenced today to six months in prison, to be followed by six months of home detention, for her participation in a scheme to accept bribes in exchange for smuggling narcotics and other contraband into Rikers Island. BARRIENTOS previously pled guilty before U.S. District Judge Gregory H. Woods, who imposed today’s sentence.

Acting U.S. Attorney Matthew Podolsky said: “Ghislaine Barrientos smuggled drugs and other contraband into Rikers Island in exchange for more than ten thousand dollars in bribes. Barrientos not only abused her position of public trust as a corrections officer, she made Rikers Island less safe for inmates and officers alike. Corrupt corrections officers have no place in our jail facilities, and this Office will continue to work to rid our jails of those who take advantage of their positions to enrich themselves.”

As reflected in the Complaint, Information, and statements made in court:

BARRIENTOS, a former New York City Department of Correction (“DOC”) correction officer, conspired with others to smuggle contraband, including cocaine, smokeable synthetic cannabinoids (known as “K2”), and food to inmates housed at the Robert N. Davoren Complex on Rikers Island in exchange for thousands of dollars in bribe payments.

* * *

In addition to the prison sentence, BARRIENTOS, 37, of Mount Vernon, New York, was ordered to forfeit $11,866.

Mr. Podolsky praised the outstanding investigative work of the Federal Bureau of Investigation and the New York City Department of Investigation.

This case is being handled by the Office’s Public Corruption and Narcotics Units. Assistant U.S. Attorney Jeffrey Coyle is in charge of the prosecution.

MIL Security OSI –

April 17, 2025

MIL-OSI USA: CISA Releases Guidance on Credential Risks Associated with Potential Legacy Oracle Cloud Compromise

News In Brief – Source: US Computer Emergency Readiness Team

CISA is aware of public reporting regarding potential unauthorized access to a legacy Oracle cloud environment. While the scope and impact remains unconfirmed, the nature of the reported activity presents potential risk to organizations and individuals, particularly where credential material may be exposed, reused across separate, unaffiliated systems, or embedded (i.e., hardcoded into scripts, applications, infrastructure templates, or automation tools). When credential material is embedded, it is difficult to discover and can enable long-term unauthorized access if exposed.

The compromise of credential material, including usernames, emails, passwords, authentication tokens, and encryption keys, can pose significant risk to enterprise environments. Threat actors routinely harvest and weaponize such credentials to:

Escalate privileges and move laterally within networks.
Access cloud and identity management systems.
Conduct phishing, credential-based, or business email compromise (BEC) campaigns.
Resell or exchange access to stolen credentials on criminal marketplaces.
Enrich stolen data with prior breach information for resale and/or targeted intrusion.

CISA recommends the following actions to reduce the risks associated with potential credential compromise:

For Organizations:
- Reset passwords for any known affected users across enterprise services, particularly where local credentials may not be federated through enterprise identity solutions.
- Review source code, infrastructure-as-code templates, automation scripts, and configuration files for hardcoded or embedded credentials and replace them with secure authentication methods supported by centralized secret management.
- Monitor authentication logs for anomalous activity, especially involving privileged, service, or federated identity accounts, and assess whether additional credentials (such as API keys and shared accounts) may be associated with any known impacted identities.
- Enforce phishing-resistant multi-factor authentication (MFA) for all user and administrator accounts wherever technically feasible.
- For additional information for or on Cloud security best practices please review the following Cybersecurity Information Sheets: CISA and NSA Release Cybersecurity Information Sheets on Cloud Security Best Practices.
For Users:
- Immediately update any potentially affected passwords that may have been reused across other platforms or services.
- Use strong, unique passwords for each account and enable phishing-resistant multifactor authentication (MFA) on services and applications that support it. For more information on using strong passwords, see CISA’s Use Strong Passwords web page. For more information on phishing-resistant MFA see CISA’s Implementing Phishing-Resistant MFA Fact Sheet.
- Remain alert against phishing attempts (e.g., referencing login issues, password resets, or suspicious activity notifications) and reference Phishing Guidance: Stopping the Attack Cycle at Phase One.

Organizations should report incidents and anomalous activity to CISA’s 24/7 Operations Center at Report@cisa.gov or (888) 282-0870. 

Disclaimer:

The information in this report is being provided “as is” for informational purposes only. CISA does not endorse any commercial entity, product, company, or service, including any entities, products, or services linked within this document. Any reference to specific commercial entities, products, processes, or services by service mark, trademark, manufacturer, or otherwise, does not constitute or imply endorsement, recommendation, or favoring by CISA.

MIL OSI USA News –

April 17, 2025

MIL-OSI Asia-Pac: “SPECIAL HANDLOOM EXPO”- Celebrating Hand woven Products of India

Source: Government of India

“SPECIAL HANDLOOM EXPO”- Celebrating Hand woven Products of India

National Handloom Development Corporation launches “SPECIAL HANDLOOM EXPO” at NOIDA

The event brings together handloom weavers from across 13 states

#MyHandloomMyPride, #MyProductMyPride

Posted On: 17 APR 2025 11:49AM by PIB Delhi

National Handloom Development Corporation under the aegis of Ministry of Textiles, Government of India, launched “SPECIAL HANDLOOM EXPO” at their Corporate Office in NOIDA.

The event brings together handloom weavers from across 13 states and aims at renewed focus on the age-old tradition of Handloom weaving and provides an added platform for weavers to sell their products directly to customers.

The highlights of the event include; 25 stalls of Handloom products showcasing exquisite varieties of Sarees, Dress Material, stoles, dupattas etc.

“Special Handloom Expo, My Handloom My Pride” exhibition will remain open till 24th April 2025, from 11:00 AM to 8:00 PM

***

Dhanya Sanal K

(Release ID: 2122341) Visitor Counter : 14

MIL OSI Asia Pacific News –

April 17, 2025

MIL-OSI Asia-Pac: Technology Development Board-Department of Science and Technology (TDB-DST) supports M/s dvipa Defence India Pvt. Ltd. in Strengthening India’s Small Arms Manufacturing Ecosystem”

Source: Government of India

Technology Development Board-Department of Science and Technology (TDB-DST) supports M/s dvipa Defence India Pvt. Ltd. in Strengthening India’s Small Arms Manufacturing Ecosystem”

TDB-DST backs Homegrown Innovation: dvipa’s UGRAM Rifle Marks a New Era in Indian Small Arms Manufacturing”

Posted On: 17 APR 2025 2:45PM by PIB Delhi

The Ministry of Science and Technology, through the Technology Development Board (TDB), has taken a pivotal step toward indigenizing India’s small arms manufacturing capability by extending financial assistance to M/s dvipa Defence India Pvt. Ltd., Hyderabad (erstwhile M/s dvipa Armour Pvt. Ltd.). The project, titled “Development and Commercialization of 7.62 mm x 51 mm Assault Rifles,” aims to produce high-performance, indigenous assault rifles in alignment with the Indian Army’s General Staff Qualitative Requirements (GSQR).

TDB’s assistance will play a crucial role in enabling the development, testing, and commercialization of the UGRAM rifle, including the creation of a state-of-the-art in-house manufacturing unit with integrated quality assurance and testing infrastructure.

For decades, India has depended heavily on imported small arms, resulting in substantial foreign exchange outflows and interoperability challenges across armed forces, thereby complicating training and logistics. The ageing INSAS rifles, once developed through earlier collaborations, are increasingly viewed as inadequate for modern combat needs. In 2017, the Government initiated a policy shift to replace these with advanced, reliable rifles chambered in 7.62 mm x 51 mm NATO-grade ammunition.

In response to this national need, dvipa Defence, incorporated in October 2018, emerged as a strong domestic player in the defence manufacturing sector. As one of the early license holders for small arms and ammunition production, the company partnered with DRDO’s Armament Research & Development Establishment (ARDE), Pune, to develop a fully indigenous assault rifle, UGRAM – Sanskrit for “ferocious.” Demonstrating exceptional execution, five prototypes were developed within 100 days and successfully passed initial testing at ARDE.

UGRAM: A Modern, Indigenous Combat-Ready Assault Rifle

UGRAM is a modular, ergonomically designed 7.62 mm x 51 mm assault rifle, tailored for counter-insurgency (CI) and counter-terror (CT) operations by armed forces, paramilitary units, and special forces. It incorporates several advanced features:

Indigenous Development:
- 100% design, material selection, manufacturing, and testing conducted domestically and approved by ARDE, DRDO.
Key Features:
- Long-stroke piston mechanism for enhanced reliability.
- High-strength steel used in all pressure-bearing parts.
- High-grade nylon-based handguard, pistol grip, and buttstock.
- Ambidextrous magazine release and ergonomic, side-mounted cocking handle.

Speaking on the occasion, Sh. Rajesh Kumar Pathak, Secretary, TDB, said,
“TDB’s support to dvipa Defence underscores our commitment to indigenizing critical defence technologies under ‘Make in India’ and ‘Atmanirbhar Bharat’. This project not only strengthens self-reliance but also paves the way for import substitution and future exports through trusted strategic partnerships.”

Commenting on TDB’s support, Founders of M/s dvipa Defence India Pvt. Ltd. said,
“We are proud to contribute to India’s strategic autonomy by building world-class defence products from Indian soil. The support from TDB strengthens our resolve to manufacture for the forces, by the forces, in India.”

********

NKR/PSM

(Release ID: 2122388) Visitor Counter : 28

MIL OSI Asia Pacific News –

April 17, 2025

MIL-OSI: Texas Capital Bancshares, Inc. Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

First quarter 2025 net income of $47.0 million and net income available to common
stockholders of $42.7 million, or $0.92 per diluted share

Strong balance sheet growth with total deposits increasing 9% and total loans growing 7% year-over-year

Book Value and Tangible Book Value⁽¹⁾per share both increasing 11% year-over-year, reaching record levels

Capital ratios continue to be strong, including 11.6% CET1 and 15.6% Total Capital

DALLAS, April 17, 2025 (GLOBE NEWSWIRE) — Texas Capital Bancshares, Inc. (NASDAQ: TCBI), the parent company of Texas Capital Bank, announced operating results for the first quarter of 2025.

“We continue to leverage our diversified product suite and financially resilient balance sheet to effectively support our clients’ objectives,” said Rob C. Holmes, Chairman, President & CEO. “With significant year-over-year improvements to many key financial and operating metrics, we remain focused on achieving published financial targets in the back-half of this year.”

	1st Quarter			4th Quarter			1st Quarter
(dollars in thousands except per share data)		2025			2024			2024
OPERATING RESULTS
Net income	$	47,047		$	71,023		$	26,142
Net income available to common stockholders	$	42,734		$	66,711		$	21,829
Pre-provision net revenue⁽³⁾	$	77,458		$	111,522		$	53,935
Diluted earnings per common share	$	0.92		$	1.43		$	0.46
Diluted common shares		46,616,704			46,770,961			47,711,192
Return on average assets		0.61	%		0.88	%		0.36	%
Return on average common equity		5.56	%		8.50	%		3.03	%

OPERATING RESULTS, ADJUSTED⁽²⁾
Net income	$	47,047		$	71,023		$	33,898
Net income available to common stockholders	$	42,734		$	66,711		$	29,585
Pre-provision net revenue⁽³⁾	$	77,458		$	111,522		$	63,953
Diluted earnings per common share	$	0.92		$	1.43		$	0.62
Diluted common shares		46,616,704			46,770,961			47,711,192
Return on average assets		0.61	%		0.88	%		0.47	%
Return on average common equity		5.56	%		8.50	%		4.11	%

BALANCE SHEET
Loans held for investment	$	17,654,243		$	17,234,492		$	16,677,691
Loans held for investment, mortgage finance		4,725,541			5,215,574			4,153,313
Total loans held for investment		22,379,784			22,450,066			20,831,004
Loans held for sale		—			—			37,750
Total assets		31,375,749			30,731,883			29,180,585
Non-interest bearing deposits		7,874,780			7,485,428			8,478,215
Total deposits		26,053,034			25,238,599			23,954,037
Stockholders’ equity		3,429,774			3,367,936			3,170,662

(1) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.
(2) These adjusted measures are non-GAAP measures. Please refer to “GAAP to Non-GAAP Reconciliations” for the computations of these adjusted measures and the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.
(3) Net interest income plus non-interest income, less non-interest expense.

FIRST QUARTER 2025 COMPARED TO FOURTH QUARTER 2024

For the first quarter of 2025, net income available to common stockholders was $42.7 million, or $0.92 per diluted share, compared to $66.7 million, or $1.43 per diluted share, for the fourth quarter of 2024.

Provision for credit losses for the first quarter of 2025 was $17.0 million, compared to $18.0 million for the fourth quarter of 2024. The $17.0 million provision for credit losses recorded in the first quarter of 2025 resulted primarily from an increase in criticized loans and $9.8 million in net charge-offs, as well as uncertainty in the economic outlook.

Net interest income was $236.0 million for the first quarter of 2025, compared to $229.6 million for the fourth quarter of 2024, as a decrease in funding costs was partially offset by a decrease in average earning assets. Net interest margin for the first quarter of 2025 was 3.19%, an increase of 26 basis points from the fourth quarter of 2024. LHI, excluding mortgage finance, yields increased 3 basis points from the fourth quarter of 2024 and LHI, mortgage finance, yields increased 20 basis points from the fourth quarter of 2024. Total cost of deposits was 2.76% for the first quarter of 2025, a 5 basis point decrease from the fourth quarter of 2024.

Non-interest income for the first quarter of 2025 decreased $9.6 million compared to the fourth quarter of 2024 primarily due to a decrease in investment banking and advisory fees.

Non-interest expense for the first quarter of 2025 increased $30.9 million, or 18%, compared to the fourth quarter of 2024, primarily due to an increase in salaries and benefits, primarily as a result of the effect of seasonal payroll expenses that peak in the first quarter.

FIRST QUARTER 2025 COMPARED TO FIRST QUARTER 2024

Net income available to common stockholders was $42.7 million, or $0.92 per diluted share, for the first quarter of 2025, compared to $21.8 million, or $0.46 per diluted share, for the first quarter of 2024.

The first quarter of 2025 included a $17.0 million provision for credit losses, reflecting an increase in criticized loans, $9.8 million in net charge-offs and uncertainty in the economic outlook, compared to a $19.0 million provision for credit losses for the first quarter of 2024.

Net interest income increased to $236.0 million for the first quarter of 2025, compared to $215.0 million for the first quarter of 2024, primarily due to an increase in average total LHI and a decrease in funding costs, partially offset by an increase in average interest bearing liabilities and a decrease in earning asset yields. Net interest margin increased 16 basis points to 3.19% for the first quarter of 2025, as compared to the first quarter of 2024. LHI, excluding mortgage finance, yields decreased 41 basis points compared to the first quarter of 2024 and LHI, mortgage finance yields increased 33 basis points from the first quarter of 2024. Total cost of deposits decreased 21 basis points compared to the first quarter of 2024.

Non-interest income for the first quarter of 2025 increased $3.1 million compared to the first quarter of 2024 primarily due to increases in service charges on deposit accounts, trading income and other non-interest income, partially offset by a decrease in investment banking and advisory fees.

Non-interest expense for the first quarter of 2025 increased $627,000 compared to the first quarter of 2024, primarily due to increases in salaries and benefits and communications and technology expense, partially offset by a decrease in Federal Deposit Insurance Corporation (“FDIC”) expense. The first quarter of 2024 included $3.0 million in additional FDIC special assessment expense.

CREDIT QUALITY

Net charge-offs of $9.8 million were recorded during the first quarter of 2025, compared to net charge-offs of $12.1 million and $10.8 million during the fourth quarter of 2024 and the first quarter of 2024, respectively. Criticized loans totaled $762.9 million at March 31, 2025, compared to $714.0 million at December 31, 2024 and $859.5 million at March 31, 2024. Non-accrual LHI totaled $93.6 million at March 31, 2025, compared to $111.2 million at December 31, 2024 and $92.8 million at March 31, 2024. The ratio of non-accrual LHI to total LHI for the first quarter of 2025 was 0.42%, compared to 0.50% for the fourth quarter of 2024 and 0.45% for the first quarter of 2024. The ratio of total allowance for credit losses to total LHI was 1.48% at March 31, 2025, compared to 1.45% and 1.46% at December 31, 2024 and March 31, 2024, respectively.

REGULATORY RATIOS AND CAPITAL

All regulatory ratios continue to be in excess of “well capitalized” requirements as of March 31, 2025. CET1, tier 1 capital, total capital and leverage ratios were 11.6%, 13.1%, 15.6% and 11.8%, respectively, at March 31, 2025, compared to 11.4%, 12.8%, 15.4% and 11.3%, respectively, at December 31, 2024 and 12.4%, 13.9%, 16.6% and 12.4%, respectively, at March 31, 2024. At March 31, 2025, our ratio of tangible common equity to total tangible assets was 10.0%, compared to 10.0% at December 31, 2024 and 9.8% at March 31, 2024.

During the first quarter of 2025, the Company repurchased 396,106 shares of its common stock for an aggregate purchase price, including excise tax expense, of $31.2 million, at a weighted average price of $78.25 per share.

About Texas Capital Bancshares, Inc.

Texas Capital Bancshares, Inc. (NASDAQ^®: TCBI), a member of the Russell 2000^®Index and the S&P MidCap 400^®, is the parent company of Texas Capital Bank (“TCB”). Texas Capital is the collective brand name for TCB and its separate, non-bank affiliates and wholly-owned subsidiaries. Texas Capital is a full-service financial services firm that delivers customized solutions to businesses, entrepreneurs and individual customers. Founded in 1998, the institution is headquartered in Dallas with offices in Austin, Houston, San Antonio, and Fort Worth, and has built a network of clients across the country. With the ability to service clients through their entire lifecycles, Texas Capital has established commercial banking, consumer banking, investment banking and wealth management capabilities.

Forward Looking Statements

This communication contains “forward-looking statements” within the meaning of and pursuant to the Private Securities Litigation Reform Act of 1995 regarding, among other things, TCBI’s financial condition, results of operations, business plans and future performance. These statements are not historical in nature and may often be identified by the use of words such as “believes,” “projects,” “expects,” “may,” “estimates,” “should,” “plans,” “targets,” “intends” “could,” “would,” “anticipates,” “potential,” “confident,” “optimistic” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, trends, guidance, expectations and future plans.

Because forward-looking statements relate to future results and occurrences, they are subject to inherent and various uncertainties, risks, and changes in circumstances that are difficult to predict, may change over time, are based on management’s expectations and assumptions at the time the statements are made and are not guarantees of future results. Numerous risks and other factors, many of which are beyond management’s control, could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. While there can be no assurance that any list of risks is complete, important risks and other factors that could cause actual results to differ materially from those contemplated by forward-looking statements include, but are not limited to: economic or business conditions in Texas, the United States or globally that impact TCBI or its customers; negative credit quality developments arising from the foregoing or other factors, including recent trade policies and their impact on our customers; TCBI’s ability to effectively manage its liquidity and maintain adequate regulatory capital to support its businesses; TCBI’s ability to pursue and execute upon growth plans, whether as a function of capital, liquidity or other limitations; TCBI’s ability to successfully execute its business strategy, including its strategic plan and developing and executing new lines of business and new products and services and potential strategic acquisitions; the extensive regulations to which TCBI is subject and its ability to comply with applicable governmental regulations, including legislative and regulatory changes; TCBI’s ability to effectively manage information technology systems, including third party vendors, cyber or data privacy incidents or other failures, disruptions or security breaches; TCBI’s ability to use technology to provide products and services to its customers; risks related to the development and use of artificial intelligence; changes in interest rates, including the impact of interest rates on TCBI’s securities portfolio and funding costs, as well as related balance sheet implications stemming from the fair value of our assets and liabilities; the effectiveness of TCBI’s risk management processes strategies and monitoring; fluctuations in commercial and residential real estate values, especially as they relate to the value of collateral supporting TCBI’s loans; the failure to identify, attract and retain key personnel and other employees; adverse developments in the banking industry and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments, including in the context of regulatory examinations and related findings and actions; negative press and social media attention with respect to the banking industry or TCBI, in particular; claims, litigation or regulatory investigations and actions that TCBI may become subject to; severe weather, natural disasters, climate change, acts of war, terrorism, global conflict (including those already reported by the media, as well as others that may arise), or other external events, as well as related legislative and regulatory initiatives; and the risks and factors more fully described in TCBI’s most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other documents and filings with the SEC. The information contained in this communication speaks only as of its date. Except to the extent required by applicable law or regulation, we disclaim any obligation to update such factors or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments.

TEXAS CAPITAL BANCSHARES, INC.
SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)
(dollars in thousands except per share data)
	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
		2025			2024		2024				2024			2024
CONSOLIDATED STATEMENTS OF INCOME
Interest income	$	427,289		$	437,571		$	452,533		$	422,068		$	417,378
Interest expense		191,255			207,964			212,431			205,486			202,369
Net interest income		236,034			229,607			240,102			216,582			215,009
Provision for credit losses		17,000			18,000			10,000			20,000			19,000
Net interest income after provision for credit losses		219,034			211,607			230,102			196,582			196,009
Non-interest income		44,444			54,074			(114,771	)		50,424			41,319
Non-interest expense		203,020			172,159			195,324			188,409			202,393
Income/(loss) before income taxes		60,458			93,522			(79,993	)		58,597			34,935
Income tax expense/(benefit)		13,411			22,499			(18,674	)		16,935			8,793
Net income/(loss)		47,047			71,023			(61,319	)		41,662			26,142
Preferred stock dividends		4,313			4,312			4,313			4,312			4,313
Net income/(loss) available to common stockholders	$	42,734		$	66,711		$	(65,632	)	$	37,350		$	21,829
Diluted earnings/(loss) per common share	$	0.92		$	1.43		$	(1.41	)	$	0.80		$	0.46
Diluted common shares		46,616,704			46,770,961			46,608,742			46,872,498			47,711,192
CONSOLIDATED BALANCE SHEET DATA
Total assets	$	31,375,749		$	30,731,883		$	31,629,299		$	29,854,994		$	29,180,585
Loans held for investment		17,654,243			17,234,492			16,764,512			16,700,569			16,677,691
Loans held for investment, mortgage finance		4,725,541			5,215,574			5,529,659			5,078,161			4,153,313
Loans held for sale		—			—			9,022			36,785			37,750
Interest bearing cash and cash equivalents		3,600,969			3,012,307			3,894,537			2,691,352			3,148,157
Investment securities		4,531,219			4,396,115			4,405,520			4,388,976			4,414,280
Non-interest bearing deposits		7,874,780			7,485,428			9,070,804			7,987,715			8,478,215
Total deposits		26,053,034			25,238,599			25,865,255			23,818,327			23,954,037
Short-term borrowings		750,000			885,000			1,035,000			1,675,000			750,000
Long-term debt		660,521			660,346			660,172			659,997			859,823
Stockholders’ equity		3,429,774			3,367,936			3,354,044			3,175,601			3,170,662

End of period shares outstanding		46,024,933			46,233,812			46,207,757			46,188,078			46,986,275
Book value per share	$	68.00		$	66.36		$	66.09		$	62.26		$	61.10
Tangible book value per share⁽¹⁾	$	67.97		$	66.32		$	66.06		$	62.23		$	61.06
SELECTED FINANCIAL RATIOS
Net interest margin		3.19	%		2.93	%		3.16	%		3.01	%		3.03	%
Return on average assets		0.61	%		0.88	%		(0.78	)%		0.56	%		0.36	%
Return on average assets, adjusted⁽⁴⁾		0.61	%		0.88	%		1.00	%		0.57	%		0.47	%
Return on average common equity		5.56	%		8.50	%		(8.87	)%		5.26	%		3.03	%
Return on average common equity, adjusted⁽⁴⁾		5.56	%		8.50	%		10.04	%		5.31	%		4.11	%
Efficiency ratio⁽²⁾		72.4	%		60.7	%		155.8	%		70.6	%		79.0	%
Efficiency ratio, adjusted⁽²⁾⁽⁴⁾		72.4	%		60.7	%		62.3	%		70.4	%		75.1	%
Non-interest income to average earning assets		0.60	%		0.69	%		(1.52	)%		0.71	%		0.59	%
Non-interest income to average earning assets, adjusted⁽⁴⁾		0.60	%		0.69	%		0.86	%		0.71	%		0.59	%
Non-interest expense to average earning assets		2.75	%		2.21	%		2.59	%		2.65	%		2.89	%
Non-interest expense to average earning assets, adjusted⁽⁴⁾		2.75	%		2.21	%		2.52	%		2.65	%		2.74	%
Common equity to total assets		10.0	%		10.0	%		9.7	%		9.6	%		9.8	%
Tangible common equity to total tangible assets⁽³⁾		10.0	%		10.0	%		9.7	%		9.6	%		9.8	%
Common Equity Tier 1		11.6	%		11.4	%		11.2	%		11.6	%		12.4	%
Tier 1 capital		13.1	%		12.8	%		12.6	%		13.1	%		13.9	%
Total capital		15.6	%		15.4	%		15.2	%		15.7	%		16.6	%
Leverage		11.8	%		11.3	%		11.4	%		12.2	%		12.4	%

(1) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by shares outstanding at period end.
(2) Non-interest expense divided by the sum of net interest income and non-interest income.
(3) Stockholders’ equity excluding preferred stock, less goodwill and intangibles, divided by total assets, less goodwill and intangibles.
(4) These adjusted measures are non-GAAP measures. Please refer to “GAAP to Non-GAAP Reconciliations” for the computations of these adjusted measures and the reconciliation of these non-GAAP measures to the most directly comparable GAAP measure.


TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(dollars in thousands)
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Assets
Cash and due from banks	$	201,504		$	176,501		$	297,048		$	221,727		$	167,985
Interest bearing cash and cash equivalents		3,600,969			3,012,307			3,894,537			2,691,352			3,148,157
Available-for-sale debt securities		3,678,378			3,524,686			3,518,662			3,483,231			3,491,510
Held-to-maturity debt securities		779,354			796,168			812,432			831,513			849,283
Equity securities		71,679			75,261			74,426			74,232			73,487
Trading securities		1,808			—			—			—			—
Investment securities		4,531,219			4,396,115			4,405,520			4,388,976			4,414,280
Loans held for sale		—			—			9,022			36,785			37,750
Loans held for investment, mortgage finance		4,725,541			5,215,574			5,529,659			5,078,161			4,153,313
Loans held for investment		17,654,243			17,234,492			16,764,512			16,700,569			16,677,691
Less: Allowance for credit losses on loans		278,379			271,709			273,143			267,297			263,962
Loans held for investment, net		22,101,405			22,178,357			22,021,028			21,511,433			20,567,042
Premises and equipment, net		84,575			85,443			81,577			69,464			49,899
Accrued interest receivable and other assets		854,581			881,664			919,071			933,761			793,976
Goodwill and intangibles, net		1,496			1,496			1,496			1,496			1,496
Total assets	$	31,375,749		$	30,731,883		$	31,629,299		$	29,854,994		$	29,180,585

Liabilities and Stockholders’ Equity
Liabilities:
Non-interest bearing deposits	$	7,874,780		$	7,485,428		$	9,070,804		$	7,987,715		$	8,478,215
Interest bearing deposits		18,178,254			17,753,171			16,794,451			15,830,612			15,475,822
Total deposits		26,053,034			25,238,599			25,865,255			23,818,327			23,954,037
Accrued interest payable		25,270			23,680			18,679			23,841			32,352
Other liabilities		457,150			556,322			696,149			502,228			413,711
Short-term borrowings		750,000			885,000			1,035,000			1,675,000			750,000
Long-term debt		660,521			660,346			660,172			659,997			859,823
Total liabilities		27,945,975			27,363,947			28,275,255			26,679,393			26,009,923

Stockholders’ equity:
Preferred stock, $.01 par value, $1,000 liquidation value:
Authorized shares – 10,000,000
Issued shares⁽¹⁾		300,000			300,000			300,000			300,000			300,000
Common stock, $.01 par value:
Authorized shares – 100,000,000
Issued shares⁽²⁾		517			515			515			515			514
Additional paid-in capital		1,060,028			1,056,719			1,054,614			1,050,114			1,044,669
Retained earnings		2,538,385			2,495,651			2,428,940			2,494,572			2,457,222
Treasury stock⁽³⁾		(332,994	)		(301,842	)		(301,868	)		(301,868	)		(251,857	)
Accumulated other comprehensive loss, net of taxes		(136,162	)		(183,107	)		(128,157	)		(367,732	)		(379,886	)
Total stockholders’ equity		3,429,774			3,367,936			3,354,044			3,175,601			3,170,662
Total liabilities and stockholders’ equity	$	31,375,749		$	30,731,883		$	31,629,299		$	29,854,994		$	29,180,585

⁽¹⁾Preferred stock – issued shares		300,000			300,000			300,000			300,000			300,000
⁽²⁾Common stock – issued shares		51,707,542			51,520,315			51,494,260			51,474,581			51,420,680
⁽³⁾Treasury stock – shares at cost		5,682,609			5,286,503			5,286,503			5,286,503			4,434,405

TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands except per share data)
	Three Months Ended March 31,
		2025		2024
Interest income
Interest and fees on loans	$	334,150	$	330,879
Investment securities		46,565		32,144
Interest bearing cash and cash equivalents		46,574		54,355
Total interest income		427,289		417,378
Interest expense
Deposits		174,936		175,600
Short-term borrowings		8,246		12,783
Long-term debt		8,073		13,986
Total interest expense		191,255		202,369
Net interest income		236,034		215,009
Provision for credit losses		17,000		19,000
Net interest income after provision for credit losses		219,034		196,009
Non-interest income
Service charges on deposit accounts		7,840		6,339
Wealth management and trust fee income		3,964		3,567
Brokered loan fees		1,949		1,911
Investment banking and advisory fees		16,478		18,424
Trading income		5,939		4,712
Other		8,274		6,366
Total non-interest income		44,444		41,319
Non-interest expense
Salaries and benefits		131,641		128,727
Occupancy expense		10,844		9,737
Marketing		5,009		6,036
Legal and professional		14,989		16,195
Communications and technology		23,642		21,114
Federal Deposit Insurance Corporation insurance assessment		5,341		8,421
Other		11,554		12,163
Total non-interest expense		203,020		202,393
Income before income taxes		60,458		34,935
Income tax expense		13,411		8,793
Net income		47,047		26,142
Preferred stock dividends		4,313		4,313
Net income available to common stockholders	$	42,734	$	21,829

Basic earnings per common share	$	0.93	$	0.46
Diluted earnings per common share	$	0.92	$	0.46

TEXAS CAPITAL BANCSHARES, INC.
SUMMARY OF CREDIT LOSS EXPERIENCE
(dollars in thousands)
	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
		2025			2024			2024			2024			2024
Allowance for credit losses on loans:
Beginning balance	$	271,709		$	273,143		$	267,297		$	263,962		$	249,973
Allowance established for acquired purchase credit deterioration loans		—			—			2,579			—			—
Loans charged-off:
Commercial		10,197			14,100			6,120			9,997			7,544
Commercial real estate		500			2,566			262			2,111			3,325
Consumer		—			—			30			—			—
Total charge-offs		10,697			16,666			6,412			12,108			10,869
Recoveries:
Commercial		483			4,562			329			153			105
Commercial real estate		413			18			—			—			—
Consumer		4			15			—			—			—
Total recoveries		900			4,595			329			153			105
Net charge-offs		9,797			12,071			6,083			11,955			10,764
Provision for credit losses on loans		16,467			10,637			9,350			15,290			24,753
Ending balance	$	278,379		$	271,709		$	273,143		$	267,297		$	263,962

Allowance for off-balance sheet credit losses:
Beginning balance	$	53,332		$	45,969		$	45,319		$	40,609		$	46,362
Provision for off-balance sheet credit losses		533			7,363			650			4,710			(5,753	)
Ending balance	$	53,865		$	53,332		$	45,969		$	45,319		$	40,609

Total allowance for credit losses	$	332,244		$	325,041		$	319,112		$	312,616		$	304,571
Total provision for credit losses	$	17,000		$	18,000		$	10,000		$	20,000		$	19,000

Allowance for credit losses on loans to total loans held for investment		1.24	%		1.21	%		1.23	%		1.23	%		1.27	%
Allowance for credit losses on loans to average total loans held for investment		1.29	%		1.22	%		1.24	%		1.27	%		1.32	%
Net charge-offs to average total loans held for investment⁽¹⁾		0.18	%		0.22	%		0.11	%		0.23	%		0.22	%
Net charge-offs to average total loans held for investment for last 12 months⁽¹⁾		0.18	%		0.19	%		0.20	%		0.22	%		0.20	%
Total provision for credit losses to average total loans held for investment⁽¹⁾		0.32	%		0.32	%		0.18	%		0.38	%		0.38	%
Total allowance for credit losses to total loans held for investment		1.48	%		1.45	%		1.43	%		1.44	%		1.46	%

(1) Interim period ratios are annualized.


TEXAS CAPITAL BANCSHARES, INC.
NON-PERFORMING ASSETS, PAST DUE LOANS AND CRITICIZED LOANS
(dollars in thousands)
	1st Quarter			4th Quarter			3rd Quarter			2nd Quarter			1st Quarter
		2025			2024			2024			2024			2024
NON-PERFORMING ASSETS
Non-accrual loans held for investment	$	93,565		$	111,165		$	88,960		$	85,021		$	92,849
Non-accrual loans held for sale⁽¹⁾		—			—			—			—			9,250
Other real estate owned		—			—			—			—			—
Total non-performing assets	$	93,565		$	111,165		$	88,960		$	85,021		$	102,099

Non-accrual loans held for investment to total loans held for investment		0.42	%		0.50	%		0.40	%		0.39	%		0.45	%
Total non-performing assets to total assets		0.30	%		0.36	%		0.28	%		0.28	%		0.35	%
Allowance for credit losses on loans to non-accrual loans held for investment	3.0x			2.4x			3.1x			3.1x			2.8x
Total allowance for credit losses to non-accrual loans held for investment	3.6x			2.9x			3.6x			3.7x			3.3x

LOANS PAST DUE
Loans held for investment past due 90 days and still accruing	$	791		$	4,265		$	5,281		$	286		$	3,674
Loans held for investment past due 90 days to total loans held for investment		—	%		0.02	%		0.02	%		—	%		0.02	%
Loans held for sale past due 90 days and still accruing	$	—		$	—		$	—		$	64		$	147

CRITICIZED LOANS
Criticized loans	$	762,887		$	713,951		$	897,727		$	859,671		$	859,539
Criticized loans to total loans held for investment		3.41	%		3.18	%		4.03	%		3.95	%		4.13	%
Special mention loans	$	484,165		$	435,626		$	579,802		$	593,305		$	584,528
Special mention loans to total loans held for investment		2.16	%		1.94	%		2.60	%		2.72	%		2.81	%

(1) First quarter 2024 includes one non-accrual loan previously reported in loans held for investment that was transferred at fair value to held for sale as of March 31, 2024.


TEXAS CAPITAL BANCSHARES, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(dollars in thousands)

	1st Quarter		4th Quarter		3rd Quarter			2nd Quarter		1st Quarter
		2025		2024		2024			2024		2024
Interest income
Interest and fees on loans	$	334,150	$	340,388	$	361,407		$	345,251	$	330,879
Investment securities		46,565		44,102		38,389			33,584		32,144
Interest bearing deposits in other banks		46,574		53,081		52,737			43,233		54,355
Total interest income		427,289		437,571		452,533			422,068		417,378
Interest expense
Deposits		174,936		189,061		190,255			181,280		175,600
Short-term borrowings		8,246		10,678		13,784			12,749		12,783
Long-term debt		8,073		8,225		8,392			11,457		13,986
Total interest expense		191,255		207,964		212,431			205,486		202,369
Net interest income		236,034		229,607		240,102			216,582		215,009
Provision for credit losses		17,000		18,000		10,000			20,000		19,000
Net interest income after provision for credit losses		219,034		211,607		230,102			196,582		196,009
Non-interest income
Service charges on deposit accounts		7,840		6,989		6,307			5,911		6,339
Wealth management and trust fee income		3,964		4,009		4,040			3,699		3,567
Brokered loan fees		1,949		2,519		2,400			2,131		1,911
Investment banking and advisory fees		16,478		26,740		34,753			25,048		18,424
Trading income		5,939		5,487		5,786			5,650		4,712
Available-for-sale debt securities losses, net		—		—		(179,581	)		—		—
Other		8,274		8,330		11,524			7,985		6,366
Total non-interest income		44,444		54,074		(114,771	)		50,424		41,319
Non-interest expense
Salaries and benefits		131,641		97,873		121,138			118,840		128,727
Occupancy expense		10,844		11,926		12,937			10,666		9,737
Marketing		5,009		4,454		5,863			5,996		6,036
Legal and professional		14,989		15,180		11,135			11,273		16,195
Communications and technology		23,642		24,007		25,951			22,013		21,114
Federal Deposit Insurance Corporation insurance assessment		5,341		4,454		4,906			5,570		8,421
Other		11,554		14,265		13,394			14,051		12,163
Total non-interest expense		203,020		172,159		195,324			188,409		202,393
Income/(loss) before income taxes		60,458		93,522		(79,993	)		58,597		34,935
Income tax expense/(benefit)		13,411		22,499		(18,674	)		16,935		8,793
Net income/(loss)		47,047		71,023		(61,319	)		41,662		26,142
Preferred stock dividends		4,313		4,312		4,313			4,312		4,313
Net income/(loss) available to common shareholders	$	42,734	$	66,711	$	(65,632	)	$	37,350	$	21,829

TEXAS CAPITAL BANCSHARES, INC.
TAXABLE EQUIVALENT NET INTEREST INCOME ANALYSIS (UNAUDITED)⁽¹⁾
(dollars in thousands)
	1st Quarter 2025						4th Quarter 2024						1st Quarter 2024
	Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate		Average Balance		Income/ Expense		Yield/ Rate
Assets
Investment securities⁽²⁾	$	4,463,876	$	46,565	4.10	%	$	4,504,101	$	44,102	3.79	%	$	4,299,368	$	32,144	2.77	%
Interest bearing cash and cash equivalents		4,255,796		46,574	4.44	%		4,472,772		53,081	4.72	%		4,051,627		54,355	5.40	%
Loans held for sale		335		2	2.97	%		—		—	—	%		51,164		1,184	9.31	%
Loans held for investment, mortgage finance		3,972,106		38,527	3.93	%		5,409,980		50,685	3.73	%		3,517,707		31,455	3.60	%
Loans held for investment⁽³⁾		17,527,070		296,091	6.85	%		16,919,925		289,916	6.82	%		16,522,089		298,306	7.26	%
Less: Allowance for credit losses on loans		272,758		—	—	%		272,975		—	—			249,936		—	—	%
Loans held for investment, net		21,226,418		334,618	6.39	%		22,056,930		340,601	6.14	%		19,789,860		329,761	6.70	%
Total earning assets		29,946,425		427,759	5.76	%		31,033,803		437,784	5.59	%		28,192,019		417,444	5.88	%
Cash and other assets		1,157,184						1,178,284						1,058,463
Total assets	$	31,103,609					$	32,212,087					$	29,250,482

Liabilities and Stockholders’ Equity
Transaction deposits	$	2,163,250	$	13,908	2.61	%	$	2,141,739	$	15,403	2.86	%	$	2,006,493	$	16,858	3.38	%
Savings deposits		13,357,243		133,577	4.06	%		12,932,458		144,393	4.44	%		11,409,677		136,790	4.82	%
Time deposits		2,329,384		27,451	4.78	%		2,331,009		29,265	4.99	%		1,719,325		21,952	5.14	%
Total interest bearing deposits		17,849,877		174,936	3.97	%		17,405,206		189,061	4.32	%		15,135,495		175,600	4.67	%
Short-term borrowings		751,500		8,246	4.45	%		883,326		10,678	4.81	%		912,088		12,783	5.64	%
Long-term debt		660,445		8,073	4.96	%		660,270		8,225	4.96	%		859,509		13,986	6.54	%
Total interest bearing liabilities		19,261,822		191,255	4.03	%		18,948,802		207,964	4.37	%		16,907,092		202,369	4.81	%
Non-interest bearing deposits		7,875,244						9,319,711						8,637,775
Other liabilities		552,154						522,641						509,286
Stockholders’ equity		3,414,389						3,420,933						3,196,329
Total liabilities and stockholders’ equity	$	31,103,609					$	32,212,087					$	29,250,482
Net interest income			$	236,504					$	229,820					$	215,075
Net interest margin					3.19	%					2.93	%					3.03	%

(1) Taxable equivalent rates used where applicable.
(2) Yields on investment securities are calculated using available-for-sale securities at amortized cost.
(3) Average balances include non-accrual loans.

GAAP TO NON-GAAP RECONCILIATIONS

The following items are non-GAAP financial measures: adjusted non-interest income, adjusted non-interest expense, adjusted net income, adjusted net income available to common stockholders, adjusted pre-provision net revenue (“PPNR”), adjusted diluted earnings/(loss) per common share, adjusted return on average assets, adjusted return on average common equity, adjusted efficiency ratio, adjusted non-interest income to average earning assets and adjusted non-interest expense to average earning assets. These are not measures recognized under GAAP and therefore are considered non-GAAP financial measures. The table below provides a reconciliation of these non-GAAP financial measures to the most comparable GAAP measures.

These non-GAAP financial measures are adjusted for certain items, listed below, that management believes are non-operating in nature and not representative of its actual operating performance. Management believes that these non-GAAP financial measures provide meaningful additional information about Texas Capital Bancshares, Inc. to assist management and investors in evaluating operating results, financial strength, business performance and capital position. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied and are not audited. As such, these non-GAAP financial measures should not be considered in isolation or as a substitute for analyses of operating results or capital position as reported under GAAP.

Reconciliation of Non-GAAP Financial Measures
(dollars in thousands except per share data)	1st Quarter 2025			4th Quarter 2024			3rd Quarter 2024			2nd Quarter 2024			1st Quarter 2024
Net interest income	$	236,034		$	229,607		$	240,102		$	216,582		$	215,009

Non-interest income		44,444			54,074			(114,771	)		50,424			41,319
Available-for-sale debt securities losses, net		—			—			179,581			—			—
Non-interest income, adjusted		44,444			54,074			64,810			50,424			41,319

Non-interest expense		203,020			172,159			195,324			188,409			202,393
FDIC special assessment		—			—			651			(462	)		(3,000	)
Restructuring expenses		—			—			(5,923	)		—			(2,018	)
Legal Settlement		—			—			—			—			(5,000	)
Non-interest expense, adjusted		203,020			172,159			190,052			187,947			192,375

Provision for credit losses		17,000			18,000			10,000			20,000			19,000

Income tax expense/(benefit)		13,411			22,499			(18,674	)		16,935			8,793
Tax effect of adjustments		—			—			44,880			104			2,262
Income tax expense/(benefit), adjusted		13,411			22,499			26,206			17,039			11,055

Net income/(loss)⁽¹⁾	$	47,047		$	71,023		$	(61,319	)	$	41,662		$	26,142
Net income/(loss), adjusted⁽¹⁾	$	47,047		$	71,023		$	78,654		$	42,020		$	33,898

Preferred stock dividends		4,313			4,312			4,313			4,312			4,313

Net income/(loss) to common stockholders⁽²⁾	$	42,734		$	66,711		$	(65,632	)	$	37,350		$	21,829
Net income/(loss) to common stockholders, adjusted⁽²⁾	$	42,734		$	66,711		$	74,341		$	37,708		$	29,585

PPNR⁽³⁾	$	77,458		$	111,522		$	(69,993	)	$	78,597		$	53,935
PPNR⁽³⁾, adjusted	$	77,458		$	111,522		$	114,860		$	79,059		$	63,953

Weighted average common shares outstanding, diluted		46,616,704			46,770,961			46,608,742			46,872,498			47,711,192
Diluted earnings/(loss) per common share	$	0.92		$	1.43		$	(1.41	)	$	0.80		$	0.46
Diluted earnings/(loss) per common share, adjusted	$	0.92		$	1.43		$	1.59		$	0.80		$	0.62

Average total assets	$	31,103,609		$	32,212,087		$	31,215,173		$	29,750,852		$	29,250,482
Return on average assets		0.61	%		0.88	%	(0.78		)%		0.56	%		0.36	%
Return on average assets, adjusted		0.61	%		0.88	%		1.00	%		0.57	%		0.47	%

Average common equity	$	3,114,389		$	3,120,933		$	2,945,238		$	2,857,661		$	2,896,329
Return on average common equity		5.56	%		8.50	%	(8.87		)%		5.26	%		3.03	%
Return on average common equity, adjusted		5.56	%		8.50	%		10.04	%		5.31	%		4.11	%

Efficiency ratio⁽⁴⁾		72.4	%		60.7	%		155.8	%		70.6	%		79.0	%
Efficiency ratio, adjusted⁽⁴⁾		72.4	%		60.7	%		62.3	%		70.4	%		75.1	%

Average earning assets	$	29,946,425		$	31,033,803		$	29,975,318		$	28,573,791		$	28,192,019
Non-interest income to average earning assets		0.60	%		0.69	%	(1.52		)%		0.71	%		0.59	%
Non-interest income to average earning assets, adjusted		0.60	%		0.69	%		0.86	%		0.71	%		0.59	%
Non-interest expense to average earning assets		2.75	%		2.21	%		2.59	%		2.65	%		2.89	%
Non-interest expense to average earning assets, adjusted		2.75	%		2.21	%		2.52	%		2.65	%		2.74	%

(1) Net interest income plus non-interest income, less non-interest expense, provision for credit losses and income tax expense/(benefit). On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted, provision for credit losses and income tax expense/(benefit), adjusted.
(2) Net income/(loss), less preferred stock dividends. On an adjusted basis, net income/(loss), adjusted, less preferred stock dividends.
(3) Net interest income plus non-interest income, less non-interest expense. On an adjusted basis, net interest income plus non-interest income, adjusted, less non-interest expense, adjusted.
(4) Non-interest expense divided by the sum of net interest income and non-interest income. On an adjusted basis, non-interest expense, adjusted, divided by the sum of net interest income and non-interest income, adjusted.

The MIL Network –

April 17, 2025

MIL-OSI USA: Klobuchar, Budd Introduce Resolution Announcing “National Public Safety Telecommunicators Week”

US Senate News:

Source: United States Senator Amy Klobuchar (D-Minn)
WASHINGTON – U.S. Senators Amy Klobuchar (D-MN) and Ted Budd (R-NC), co-chairs of the Next Generation 911 Caucus, introduced a bipartisan resolution designating April 13-19 as “National Public Safety Telecommunicators Week” to recognize 9-1-1 dispatchers for their dedication and service as first responders to emergencies across the country. A companion resolution was introduced in the House of Representatives by Representatives Norma J. Torres (D-CA) and Brian Fitzpatrick (R-PA).
“As a former prosecutor, I know what an important role public safety telecommunications professionals play in times of crisis,” said Klobuchar. “Recognizing National Public Safety Telecommunicators Week will help raise awareness about the lifesaving work these professionals do each and every day, and how we need to ensure 9-1-1 dispatchers are classified as the first responders that they are.”
“Public safety telecommunicators are on the front lines of emergency response, and are the ones who answer the call for those in need of life-saving aid. I am deeply grateful for their service to our communities in North Carolina and across the country, and I am proud to recognize them during National Public Safety Telecommunicators Week,” said Budd.
“For 17 years, I was the voice on the other end of a 9-1-1 call—listening to people in their darkest moments, calming terrified parents, and guiding callers through life-or-death situations. Dispatchers are more than operators; they are lifelines, holding steady when everything else feels out of control,” said Rep. Torres. “Public safety telecommunicators give so much of themselves to protect others, and I urge my colleagues to stand with them and fight for the status and support they deserve.”
“When every second counts, it’s the voice of a public safety telecommunicator that begins the chain of survival. These professionals are more than a calm presence—they are highly trained experts who manage emergencies with speed, clarity, and composure under immense pressure. Having served as an FBI Special Agent, I know their decisions can mean the difference between life and death. Our resolution is about more than recognition—it’s a call to action. We must ensure these frontline heroes are properly classified, fully supported, and honored for the indispensable role they have in protecting our communities,”said Fitzpatrick.
Klobuchar has long been a leader in pushing to expand and improve emergency communications infrastructure and support first responders. In February, Klobuchar and Senator Marsha Blackburn (R-TN) introduced the Enhancing First Response Act, which would appropriately recognize 9-1-1 dispatchers for the lifesaving nature of their work, improve our 9-1-1 emergency reporting system during natural disasters and subsequent recovery efforts, and bolster compliance with Kari’s Law, which Senator Klobuchar worked to pass into law in 2018 and requires the manufacturers of multi-line telephone systems to create systems that allow callers to reach 9-1-1 without dialing a prefix or postfix.
Full text of the Senate resolution can be found here.

MIL OSI USA News –

April 17, 2025

MIL-OSI Security: Delaware Woman Admits Role in COVID-19 Relief Program Fraud Scheme

Source: Office of United States Attorneys

CAMDEN, N.J. – A Delaware woman admitted to conspiring to obtain more than $1 million of federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), U.S. Attorney Alina Habba announced.

Adrienne Ponzo, 50, of Bear, Delaware, pleaded guilty before U.S. District Judge Karen M. Williams to one count of wire fraud conspiracy.

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

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (PPP). The CARES Act also authorized the U.S. Small Business Administration (SBA) to provide Economic Injury Disaster Loans (EIDLs) of up to $2 million to eligible small businesses that were experiencing substantial financial disruption due to the COVID-19 pandemic.

To obtain a PPP or EIDL loan, a qualifying small business was required to submit an application and provide information on its operations, including the number of employees and revenues or expenses. In addition, businesses generally had to provide supporting documentation such as tax returns and bank statements.

Adrienne Ponzo conspired with others to defraud the SBA and the PPP program. Ponzo’s co-conspirators recruited individuals who owned companies with little or no operations and introduced them to Ponzo. Ponzo prepared fraudulent PPP and EIDL applications for these businesses and caused them to be electronically submitted to the SBA and PPP lenders. Ponzo prepared fraudulent bank statements and tax returns for companies that did not have them. Ponzo received a portion of the loan proceeds for her role in the scheme. 14 loans totaling nearly $1,500,000 were part of the scheme.

The count of wire fraud conspiracy is punishable by a maximum of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.

Sentencing is scheduled for August 26, 2025.

U.S. Attorney Habba credited special agents of the Federal Deposit Insurance Corporation – Office of the Inspector General, under the direction of Patricia Tarasca, Special Agent-in-Charge, New York Regional Office; special agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Wayne Jacobs in Philadelphia; special agents of the Social Security Administration, Office of the Inspector General, Boston New York Field Division, under the direction of Special Agent in Charge Amy Connelly; and special agents of the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to this guilty plea.

The government is represented by Assistant U.S. Attorneys Daniel A. Friedman and Attorney-in-Charge Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division in Camden.

The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless proven guilty.

###

Defense counsel:

Troy A. Archie, Esq., Cinnaminson, New Jersey

MIL Security OSI –

April 17, 2025

MIL-OSI Security: Ocean County Man Charged with Traveling to a Foreign Place to Engage in Sexual Conduct with a Minor

Source: Office of United States Attorneys

TRENTON, N.J. – An Ocean County, New Jersey, man was arrested and charged with traveling to a foreign place to engage in sexual conduct with a minor, U.S. Attorney Alina Habba announced.

Jacob Bauer, 28, of Toms River, is charged by complaint with one count of traveling with intent to engage in illicit sexual conduct and one count of engaging in illicit sexual conduct in a foreign place. He made his initial appearance on April 2, 2025, before U.S. Magistrate Judge Rukhsanah L. Singh in Trenton federal court.

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

From December 1, 2023 through December 10, 2023, Bauer, then 27 years old, traveled from the United States to Norway to engage in sexual activity with a 14-year-old female. Once in Norway, Bauer, staying at a hotel, engaged in sexual activity with the victim on at least one occasion. After returning to the United States, Bauer communicated over social media platforms with the victim and others about his sexual activities with the victim. During those conversations, Bauer acknowledged the victim’s age and status as a minor. After members of an online community that Bauer was active in learned of his sexual activities with a minor, Bauer was “doxxed” (his public information published online) by members of that community.

“Public safety is my number one priority for New Jersey’s residents, and my office is laser focused on protecting children and ending their exploitation at the hands of abusers. The conduct here is as reprehensible as it is egregious: a then-27-year-old male took pains to plan international travel from New Jersey to Norway for the purpose of having sex with a 14-year-old girl. These charges underscore how we are standing up for the most vulnerable and will not tolerate the sexual abuse of children. I commend our partners at the Federal Bureau of Investigation, law enforcement members at the state and local levels, and our international partners who assisted with this investigation.”

U.S. Attorney Alina Habba

“We have federal laws protecting children because they cannot defend themselves,” said Newark FBI Special Agent in Charge Terence G. Reilly. Most of these investigations go unnoticed because we do all we can to protect the innocent victims. However, the work FBI Newark agents and task force officers are doing should be heralded by all of us. Day in and day out – they are saving children who shouldn’t have to experience unspeakable horrors and abuse perpetrated by child sexual predators.”

Each of the charges, traveling with intent to engage in illicit sexual conduct and engaging in illicit sexual conduct in a foreign place, carries a potential maximum penalty of 30 years in prison and a fine of up to $250,000.

U.S. Attorney Habba credited the special agents and task force officers of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to the charges. She also thanked the New Brunswick Police Department, under the direction of Chief of Police Vincent Sabo, the Manchester Township Police Department, under the direction of Chief of Police Antonio Ellis, the FBI Legal Attaché Office, U.S. Embassy, Copenhagen, Denmark, the FBI Legal Attaché Office, U.S. Embassy, Warsaw, Poland, the Jackson County, Georgia Sheriff’s Office, INTERPOL, the Norwegian Politiet, Troms District, the Norwegian Politiet, NC3 KRIPOS, and the Poland Policja CBZC, Central Cybercrime Bureau for their assistance in the investigation.

The government is represented by Special Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office’s Criminal Division in Trenton.

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

###

Defense counsel: Andrea Aldana, Esq., Assistant Federal Public Defender

MIL Security OSI –

April 17, 2025

MIL-OSI USA: Federal Judge Finds a Virginia Man Guilty of Child Pornography Offenses

Source: US State of North Dakota

Yesterday, a district court judge convicted a Virginia man, who worked for the Department of Commerce, of possessing and receiving child sexual abuse material (CSAM).

According to court documents and evidence presented at trial, Rafferty Daniel Kelly, 40, of Alexandria, worked for the U.S. Patent and Trademark Office. In March 2022, a federal CSAM investigation involving an internet-based peer-to-peer file sharing service, a program used by the defendant to obtain CSAM, led federal agents to execute a search warrant at Kelly’s home, where they seized multiple devices. A review of those devices revealed that, over a period of at least two years, Kelly had downloaded and stored over 50,000 images of CSAM and child erotica, including images of infants and prepubescent children. Kelly also possessed a handbook on how to groom children.

At the end of the bench trial yesterday, the Honorable Michael S. Nachmanoff found Kelly guilty of one count of receipt of child pornography and one count of possession of child pornography. The defendant is scheduled to be sentenced on July 24 and faces a mandatory minimum penalty of five years in prison and a maximum penalty of 40 years in prison. Judge Nachmanoff will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, United States Attorney Erik S. Siebert for the Eastern District of Virginia, and Special Agent in Charge Sean Ryan of the FBI Washington Field Office’s Criminal and Cyber Division made the announcement.

Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Vanessa Strobbe for the Eastern District of Virginia are prosecuting the case.

This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, 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, visit www.justice.gov/psc.

MIL OSI USA News –

April 17, 2025

MIL-OSI Security: Kansas City Man Sentenced for Scheme to Defraud Local Financial Institution

Source: Office of United States Attorneys

KANSAS CITY, Mo. – A Kansas City, Mo., man who defrauded a local financial institution of $652,784.34 in funds was sentenced in federal court today for bank fraud and money laundering.

Maximillian D. Howell, 44, was sentenced by U.S. District Judge Brian C. Wimes to a total of 21 months in federal prison without parole. The court also ordered Howell to pay restitution of $231,841.84 to the financial institution. In addition, the court entered a final order of money judgment forfeiture of $88,123.08.

Beginning in 2015, Howell, through several of his companies, worked on numerous development projects within the City of Kansas City, Missouri. These projects were often funded through the HOME grant and CDBG. These grants were awarded to the City of Kansas City, Missouri by HUD. Other projects were funded from reimbursement-based lines of credit established at the financial institution and the General Fund of the City of Kansas City, Missouri.

To facilitate his acquisition of land to develop residential properties for sale, Howell obtained lines of credit with the financial institution, a Missouri state-chartered banking association, having an office in Kansas City, Missouri.

As the projects were under construction, the financial institution, which had promised Howell construction loans, would periodically lend Howell money based on his line of credit or the overall amount of his construction loans. These periodic loans are typically referred to as construction draws.

Howell was to draw construction loan proceeds by submitting certified draw requests, signed by him, which contained statements describing the work completed and the amount owed for that work. Howell submitted or caused to be submitted numerous such draw requests to the financial institution.

It was a part of the scheme and artifice to defraud that Howell would enter into and maintain loan agreements with the financial institution for funding five real estate development projects, to wit: Second and Delaware, 1220 Beacon Hill Lane, 2101 Garfield Avenue, 2645 Madison Avenue, and 2709 Holmes Street (collectively referred to as the “Development Projects”).

Howell, doing business through his companies, executed and presented false and fraudulent draw requests to the financial institution, predicated in whole or in part upon false claims of incurred costs, for disbursement of funds in support of the Development Projects.

Howell caused to be created false and fraudulent documentation of expenses supposedly incurred upon the Development Projects, totaling $652,784.34, paid by the financial institution to Howell.

The court ordered Howell to self-surrender on May 27, 2025.

This case is being prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by the U.S. Department of Housing and Urban Development, Office of the Inspector General.

MIL Security OSI –

April 17, 2025

MIL-OSI Security: Two MS-13 Members Sentenced To 35 Years In Prison For Murder, Third Member Sentenced To 20 Years For Racketeering Conspiracy

Source: Office of United States Attorneys

CHARLOTTE, N.C. – Three members of the La Mara Salvatrucha gang (known as MS-13) were sentenced in federal court today for engaging in violent criminal conduct, including murder, in support of the criminal organization, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina.

Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney Ferguson in making today’s announcement.

Christian Alejandro Garcia Santa Cruz, a/k/a “Crimen,” 32, of El Salvador, and Aderly Jose Veliz-Ronquillo, a/k/a “Chanchin,” 30, of Guatemala, were each sentenced to 35 years in prison for using a firearm during a crime of violence resulting in death for the 2022 murder of W.G.M. in front of a Charlotte nightclub. Luis Fernando Guardardo Moreno, a/k/a “Fantasma” and “Scrappy,” 24, of El Salvador, was sentenced to 20 years in prison followed by three years of supervised release for racketeering (RICO) conspiracy.

Two additional MS-13 members who held leadership roles within the gang, Fredy Mauricio Buruca, a/k/a “Piranha,” “Machete,” and “Insoportable,” 27, and Santos Guillermo Ramirez Mancia, a/k/a “Azazel,” “Timido,” and “Johnny,” 33, both of El Salvador, have pleaded guilty to RICO conspiracy and are awaiting sentencing. Buruca has also pleaded guilty to kidnapping a minor. A sixth MS-13 member charged in this case, Juan Francisco Sanchez Estrada, a/k/a “Nene” and “Turbo,” 31, of El Salvador, has pleaded guilty to RICO conspiracy and will be sentenced at a later date in the Middle District of North Carolina, following a consolidation of federal cases against him in each district.

“MS-13 is one of the most violent and dangerous criminal gangs operating in the United States. MS-13 members use murder, robbery, kidnapping, drug trafficking, and extortion to support this criminal enterprise and tighten its grip on our communities,” said U.S. Attorney Ferguson. “But we are fighting back. This case has dismantled the local MS-13 clique, and we’re not done. Our goal is not just to prosecute violent gangs, but to eliminate them completely.”

“Today’s prison sentences should make it clear to MS-13 members and their associates, violence and senseless murder will not be tolerated in North Carolina. The FBI and our partners will use every tool available to disrupt and dismantle violent criminal terrorist organizations and bring offenders to justice,” said FBI Special Agent in Charge DeWitt.

According to filed court documents and court proceedings, the defendants were leaders and members of the MS-13 sub-unit, or clique, known as the Hollywood Locos Salvatrucha Clique (the HLS clique), which operated in and around the Western District of North Carolina and other areas in North Carolina, Virginia, Maryland, Washington, D.C., and elsewhere. From at least December 2018 and continuing through November 2022, as members of the HLS clique, the defendants engaged in a pattern of racketeering activity that consisted of multiple acts and threats involving murder, kidnapping, extortion, robbery, and drug trafficking.

The investigation into the gang’s criminal activity revealed that these criminal acts were sanctioned by MS-13 leadership and were committed to promote a climate a fear and intimidation within the gang; to maintain the gang’s control and to expand its territory; to enforce discipline within the gang and punish any acts of disrespect; to intimidate witnesses and discourage cooperation with law enforcement; and to retaliate against rivals, or “chavalas.”

Participation in criminal activity was also intended to increase respect and ranking of members within the gang and to open the door to promotion to a leadership position. Accordingly, Santa Cruz and Veliz-Ronquillo committed murder in aid of racketeering for the purpose of maintaining and increasing their position in the MS-13 enterprise.

According to court documents, on November 6, 2022, Santa Cruz, Mancia, and Veliz-Ronquillo were at a nightclub in Charlotte. Over the course of the evening, Santa Cruz, Mancia, and Veliz-Ronquillo got into an argument with several men at the parking lot of the nightclub. During the argument, Mancia identified himself as MS-13 to the other men. At some point, W.G.M. and Mancia shoved each other. Ronquillo then shot W.G.M. once and Santa-Cruz shot the victim three times, causing the victim to sustain fatal gunshot wounds. At today’s sentencing hearing, the government contended that through their involvement in W.G.M.’s murder, Santa Cruz and Veliz-Ronquillo demonstrated their full commitment to further the goals of MS-13 and to advance their reputation within the gang.

The defendants will remain in federal custody until they are transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

In making today’s announcement U.S. Attorney Ferguson commended the FBI, HSI, and the Charlotte Mecklenburg Police Department for their investigation of the case, and thanked the Davidson County Sheriff’s Office, the Kannapolis Police Department, the Monroe Police Department, the Prince William County (Virginia) Sheriff’s Office, and the Annapolis (Maryland) Police Department for their invaluable assistance.

Assistant U.S. Attorneys Erik Lindahl and David Kelly of the U.S. Attorney’s Office in Charlotte are prosecuting the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.

MIL Security OSI –

April 17, 2025

MIL-OSI Security: Federal Judge Finds a Virginia Man Guilty of Child Pornography Offenses

Source: United States Attorneys General 13

Yesterday, a district court judge convicted a Virginia man, who worked for the Department of Commerce, of possessing and receiving child sexual abuse material (CSAM).

According to court documents and evidence presented at trial, Rafferty Daniel Kelly, 40, of Alexandria, worked for the U.S. Patent and Trademark Office. In March 2022, a federal CSAM investigation involving an internet-based peer-to-peer file sharing service, a program used by the defendant to obtain CSAM, led federal agents to execute a search warrant at Kelly’s home, where they seized multiple devices. A review of those devices revealed that, over a period of at least two years, Kelly had downloaded and stored over 50,000 images of CSAM and child erotica, including images of infants and prepubescent children. Kelly also possessed a handbook on how to groom children.

At the end of the bench trial yesterday, the Honorable Michael S. Nachmanoff found Kelly guilty of one count of receipt of child pornography and one count of possession of child pornography. The defendant is scheduled to be sentenced on July 24 and faces a mandatory minimum penalty of five years in prison and a maximum penalty of 40 years in prison. Judge Nachmanoff will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, United States Attorney Erik S. Siebert for the Eastern District of Virginia, and Special Agent in Charge Sean Ryan of the FBI Washington Field Office’s Criminal and Cyber Division made the announcement.

Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Vanessa Strobbe for the Eastern District of Virginia are prosecuting the case.

This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, 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, visit www.justice.gov/psc.

MIL Security OSI –

April 17, 2025

MIL-OSI: Great Southern Bancorp, Inc. Reports Preliminary First Quarter Earnings of $1.47 Per Diluted Common Share

Source: GlobeNewswire (MIL-OSI)

SPRINGFIELD, Mo., April 16, 2025 (GLOBE NEWSWIRE) — Great Southern Bancorp, Inc. (NASDAQ:GSBC), the holding company for Great Southern Bank, today reported that preliminary earnings for the three months ended March 31, 2025, were $1.47 per diluted common share ($17.2 million net income) compared to $1.13 per diluted common share ($13.4 million net income) for the three months ended March 31, 2024.

For the quarter ended March 31, 2025, annualized return on average common equity was 11.30%, annualized return on average assets was 1.15%, and annualized net interest margin was 3.57%, compared to 9.36%, 0.93% and 3.32%, respectively, for the quarter ended March 31, 2024.

First Quarter 2025 Key Results:

Net Interest Income: Net interest income for the first quarter of 2025 increased $4.5 million (or approximately 10.1%) to $49.3 million compared to $44.8 million for the first quarter of 2024, largely driven by higher interest income on loans and lower interest expense on deposit accounts. Annualized net interest margin was 3.57% for the quarter ended March 31, 2025, compared to 3.32% for the quarter ended March 31, 2024, and 3.49% for the quarter ended December 31, 2024. During the quarter ended March 31, 2025, the Company recorded additional interest income of $744,000 related to recoveries on cash-basis loans and other assets, positively affecting net interest income and net interest margin.
Asset Quality: Non-performing assets and potential problem loans totaled $17.0 million at March 31, 2025, an increase of $342,000 from $16.6 million at December 31, 2024. At March 31, 2025, non-performing assets were $9.5 million (0.16% of total assets), a decrease of $48,000 from $9.6 million (0.16% of total assets) at December 31, 2024.
Liquidity: The Company had secured borrowing line availability at the FHLBank and Federal Reserve Bank of $1.17 billion and $370.5 million, respectively, at March 31, 2025. In addition, at March 31, 2025, the Company had unpledged securities with a market value totaling $337.4 million, which could be pledged as collateral for additional borrowing capacity at either the FHLBank or Federal Reserve Bank.
Capital: The Company’s capital position remained strong as of March 31, 2025, significantly exceeding the thresholds established by regulators. On a preliminary basis, as of March 31, 2025, the Company’s Tier 1 Leverage Ratio was 11.3%, Common Equity Tier 1 Capital Ratio was 12.4%, Tier 1 Capital Ratio was 12.9%, and Total Capital Ratio was 15.6%. The Company’s tangible common equity to tangible assets ratio was 10.1% at March 31, 2025.
Significant Item: In the quarter ended March 31, 2025, the Company received an annual marketing and card expense reimbursement for qualifying expenditures from its debit card brand provider of $433,000, which offset marketing and advertising costs that included this branding.
Stock Purchase Authorization: In April 2025, the Company’s Board of Directors approved a new stock repurchase program of up to one million additional shares of the Company’s common stock, which will succeed the existing repurchase program (authorized in November 2022) following the repurchase of the existing program’s remaining available shares, which were approximately 270,000 shares at March 31, 2025.

Selected Financial Data:

	Three Months Ended
		March 31,			March 31,		December 31,
		2025			2024		2024
		(Dollars in thousands, except per share data)

Net interest income	$	49,334		$	44,816	$	49,534
Provision (credit) for credit losses on loans and unfunded commitments		(348	)		630		1,556
Non-interest income		6,590			6,806		6,934
Non-interest expense		34,822			34,422		36,947
Provision for income taxes		4,290			3,163		3,043

Net income	$	17,160		$	13,407	$	14,922

Earnings per diluted common share	$	1.47		$	1.13	$	1.27

Joseph W. Turner, President and CEO of Great Southern, commented, “Our first-quarter 2025 results reflect the strength of our underlying strategy and our ability to adapt with discipline amid ongoing economic and financial sector challenges. Our core banking fundamentals remain sound, with quarterly profitability strengthened by higher interest income, disciplined expense management, and favorable contributions from interest income recoveries and an expense reimbursement. We reported net income of $17.2 million, or $1.47 per diluted common share, for the first quarter of 2025, compared to $13.4 million, or $1.13 per diluted common share, in the same period last year. The increase in net income compared to the prior year quarter was primarily driven by strong growth in net interest income, which rose $4.5 million, or 10.1%, supported by increases in both loan yields and average loan balances. Additionally, a negative provision for losses on unfunded commitments of $348,000 in the first quarter of 2025, compared to a combined provision of $630,000 in the prior year quarter, contributed significantly to the improvement in profitability.”

He noted, “Despite external economic pressures, our core operations remained strong. Total interest income for the first quarter of 2025 was $80.2 million, reflecting higher earning asset levels and loan yields. Net interest income for the quarter remained healthy at $49.3 million, supported by disciplined asset-liability management and a deliberate strategy to control funding costs through management of our funding mix and duration amid persistent deposit competition. Importantly, we saw no material deterioration in our core non-time deposit balances, reflecting customer stability and the durability of our franchise.”

Turner added, “Our balance sheet remains well positioned, with total assets of approximately $5.99 billion at March 31, 2025, and a loan portfolio that has been carefully managed in terms of both growth and risk composition. We continue to emphasize prudent lending practices, focusing on relationship-based lending and credit quality rather than volume. Our allowance for credit losses stood at $64.7 million at March 31, 2025, representing 1.36% of total loans. Our non-performing assets remained at minimal levels consistent with previous quarters, underscoring the strength of our underwriting standards and ongoing credit monitoring.”

He further noted, “On the expense side, we continued to demonstrate operating discipline. Noninterest expense totaled $34.8 million for the first quarter of 2025, flat from the prior-year first quarter despite inflationary pressures, with reductions in legal and professional fees offsetting modest increases in salaries, occupancy, and technology investments. Noninterest income totaled $6.6 million for the first quarter of 2025, which was generally consistent with the prior-year first quarter.”

Turner continued, “As we look ahead, our priorities remain unchanged. We will continue to manage costs tightly, safeguard credit quality, and strive to optimize our funding mix to ensure long-term financial stability. At March 31, 2025, our capital and liquidity positions were solid, with a tangible common equity ratio of 10.1% and approximately $2 billion of secured available lines and on-balance sheet liquid assets, providing us with ample flexibility to support customers, pursue strategic growth opportunities, and continue returning value to shareholders through dividends and share repurchases. In the first quarter of 2025 we repurchased nearly 175,000 shares of our common stock.”

“Great Southern’s Q1 2025 results underscore the consistency of our business model and our track record of delivering sustainable returns, supported by strong core fundamentals and disciplined execution. We remain focused on long-term value creation and are confident in our ability to navigate the current environment while continuing to serve our customers, communities, and shareholders,” Turner concluded.

NET INTEREST INCOME

	Three Months Ended
		March 31,		March 31,	December 31,

		2025		2024		2024
		(Dollars in thousands)
Interest Income	$	80,243	$	77,390	$	82,585
Interest Expense		30,909		32,574		33,051
Net Interest Income	$	49,334	$	44,816	$	49,534

Net interest margin		3.57%		3.32%		3.49%
Average interest-earning assets to average interest-bearing liabilities		125.5%		127.4%		127.0%

Net interest income for the first quarter of 2025 increased $4.5 million to $49.3 million, compared to $44.8 million for the first quarter of 2024. This increase in net interest income was driven primarily by higher loan interest income and improved overall yields, as well as the strategic management of maturing/repricing brokered deposits and interest-bearing demand deposits. Net interest margin was 3.57% in the first quarter of 2025, compared to 3.32% in the same period of 2024 and 3.49% in the fourth quarter of 2024. The additional interest income items outlined above, under “First Quarter 2025 Key Results – Net Interest Income,” contributed 5 basis points to net interest margin in the first quarter of 2025. Compared to the 2024 first quarter, the average yield on loans increased 10 basis points, the average yield on investment securities increased 33 basis points and the average yield on other interest earning assets decreased 99 basis points. The average rate paid on interest-bearing demand and savings deposits, time deposits and brokered deposits decreased 29 basis points, 40 basis points and 67 basis points, respectively, in the three months ended March 31, 2025 compared to the three months ended March 31, 2024. The average interest rate spread was 3.00% for the three months ended March 31, 2025, compared to 2.66% for the three months ended March 31, 2024, and 2.87% for the three months ended December 31, 2024.

The average rates paid on deposits and borrowings decreased compared to the prior-year first quarter as market interest rates, primarily the federal funds rate and SOFR rates, declined in the fourth quarter of 2024. Yields on the Company’s portfolio of investment securities increased compared to the prior-year first quarter due to higher-yielding securities purchased in the second quarter of 2024. While market interest rates decreased compared to the first quarter of 2024, the average yield on loans increased slightly as cash flows from lower-rate fixed rate loans were redeployed into loans with comparably higher rates of interest.

To mitigate exposure to the risk of fluctuations in future cash flows resulting from changes in interest rates (primarily related to falling interest rates), the Company has, from time to time, strategically utilized derivative financial instruments, primarily interest rate swaps, as part of its interest rate risk management strategy.

The following table presents the effect of cash flow hedge accounting included in interest income in the consolidated statements of income:

	Three Months Ended
		March 31,			March 31,			December 31,
		2025			2024			2024
		(In thousands)
Terminated interest rate swaps	$	2,003		$	2,025		$	2,047
Active interest rate swaps		(1,742	)		(4,653	)		(2,116	)
Increase (decrease) to interest income	$	261		$	(2,628	)	$	(69	)

The Company entered into an interest rate swap in October 2018, which was terminated in March 2020. Upon termination, the Company received $45.9 million, inclusive of accrued but unpaid interest, from its swap counterparty. The net amount, after deducting accrued interest and deferred income taxes, is being accreted to interest income on loans monthly until the original termination date of October 6, 2025. After this date, the Company will no longer have the benefit of that income from the terminated swap. In 2025, the Company anticipates recording approximately $2.0 million in interest income from the terminated swap in each of the first three quarters, after which no further interest income will be realized.

The Company’s net interest income in the first quarter of 2025 increased 10.1% compared to net interest income in the first quarter of 2024. The cost of deposits has been negatively impacted over several quarters by the high level of competition for deposits across the industry and the lingering effects of liquidity events at several banks in March and April 2023. After the second quarter of 2023, the Company had a significant amount of time deposits maturing at relatively low interest rates. These deposits were either renewed at higher rates or withdrawn, requiring the Company to replace the withdrawn deposits with other funding sources at the prevailing higher market rates. Market rates for time deposits for much of 2024 remained elevated, but have recently declined as the FOMC cut the federal funds rate by 100 basis points in late 2024 and signaled that further rate cuts may occur in 2025. As of March 31, 2025, time deposit maturities over the next 12 months were as follows: within three months — $669 million, with a weighted-average rate of 4.10%; within three to six months — $495 million, with a weighted-average rate of 3.74%; and within six to twelve months — $133 million, with a weighted-average rate of 3.23%. Based on time deposit market rates in March 2025, replacement rates for these maturing time deposits are likely to be approximately 3.50-4.00%.

NON-INTEREST INCOME

For the quarter ended March 31, 2025, non-interest income decreased $216,000 to $6.6 million when compared to the quarter ended March 31, 2024. None of the components of non-interest income experienced increases or decreases exceeding $200,000 in comparing the two periods.

NON-INTEREST EXPENSE

For the quarter ended March 31, 2025, non-interest expense increased $400,000 to $34.8 million when compared to the quarter ended March 31, 2024, primarily as a result of the following items:

Net occupancy and equipment expenses: Net occupancy and equipment expenses increased $694,000, or 8.9%, from the prior-year quarter. Various components of computer license and support expenses related to upgrades of core systems capabilities collectively increased by $322,000 in the first quarter of 2025 compared to the first quarter of 2024. Parking lot maintenance expenses, primarily related to above normal snow removal activity, collectively increased by $232,000 in the first quarter of 2025 compared to the first quarter of 2024.
Salaries and employee benefits: Salaries and employee benefits increased $473,000, or 2.4%, from the prior-year quarter. Much of this increase related to normal annual merit increases in various lending and operations areas.
Legal, audit and other professional fees: Legal, audit and other professional fees decreased $687,000 from the prior-year quarter, to $1.0 million. In the quarter ended March 31, 2024, the Company expensed a total of $929,000 related to training and implementation costs for the intended core systems conversion and professional fees to consultants engaged to support the Company’s proposed transition of core and ancillary software and information technology systems, with no such costs expensed in the quarter ended March 31, 2025.

The Company’s efficiency ratio for the quarter ended March 31, 2025, was 62.27% compared to 66.68% for the same quarter in 2024. The Company’s ratio of non-interest expense to average assets was 2.34% for the three months ended March 31, 2025, compared to 2.39% for the three months ended March 31, 2024. Average assets for the three months ended March 31, 2025, increased $200.2 million, or 3.5%, compared to the three months ended March 31, 2024, primarily due to growth in average balances of net loans receivable and investment securities.

INCOME TAXES

For the three months ended March 31, 2025 and 2024, the Company’s effective tax rate was 20.0% and 19.1%, respectively. These effective rates were below the statutory federal tax rate of 21%, due primarily to the utilization of certain investment tax credits and the Company’s tax-exempt investments and tax-exempt loans, which reduced the Company’s effective tax rate. The Company’s effective tax rate may fluctuate in future periods as it is impacted by the level and timing of the Company’s utilization of tax credits, the level of tax-exempt investments and loans, the amount of taxable income in various state jurisdictions and the overall level of pre-tax income. State tax expense estimates continually evolve as taxable income and apportionment between states are analyzed. The Company currently expects its effective tax rate (combined federal and state) will be approximately 18.0% to 20.0% in future periods.

CAPITAL

	March 31,		December 31,
	2025		2024
Consolidated Regulatory Capital Ratios	(Preliminary)
Tier 1 Leverage Ratio	11.3	%	11.4	%
Common Equity Tier 1 Capital Ratio	12.4	%	12.3	%
Tier 1 Capital Ratio	12.9	%	12.8	%
Total Capital Ratio	15.6	%	15.4	%
Tangible Common Equity Ratio	10.1	%	9.9	%

As of March 31, 2025, total stockholders’ equity was $613.3 million, representing 10.2% of total assets and a book value of $53.03 per common share. This compares to total stockholders’ equity of $599.6 million, or 10.0% of total assets, and a book value of $51.14 per common share at December 31, 2024. The $13.7 million increase in stockholders’ equity was primarily driven by $17.2 million in net income and a $1.2 million increase from stock option exercises, partially offset by $4.6 million in cash dividends declared on the Company’s common stock and $10.2 million in common stock repurchases.

Decreased unrealized losses on the Company’s available-for-sale investment securities and interest rate swaps, which totaled $44.1 million (net of taxes) at March 31, 2025, also increased stockholders’ equity by $10.2 million during the quarter. These net unrealized losses primarily resulted from increased intermediate-term market interest rates in prior periods, which generally decreased the fair value of the investment securities and interest rate swaps.

The Company had unrealized losses on its portfolio of held-to-maturity investment securities, which totaled $20.6 million and $24.7 million at March 31, 2025 and December 31, 2024, respectively, that were not included in its total capital balance. If held-to-maturity unrealized losses were included in capital (net of taxes) at March 31, 2025, they would have decreased total stockholder’s equity at that date by $15.6 million. This amount was equal to 2.5% of total stockholders’ equity of $613.3 million at March 31, 2025, compared to 3.1% of total stockholders’ equity at December 31, 2024.

In November 2022, the Company’s Board of Directors authorized the purchase of an additional one million shares of the Company’s common stock. As of March 31, 2025, approximately 270,000 shares remained available in this stock repurchase authorization.

In April 2025, the Company’s Board of Directors approved a new stock repurchase program, which will succeed the existing repurchase program (authorized in November 2022) following the repurchase of the existing program’s remaining available shares. The new stock repurchase program authorizes the purchase, from time to time, of up to one million additional shares of the Company’s common stock.

During the three months ended March 31, 2025, the Company repurchased 173,344 shares of its common stock at an average price of $58.38, and the Company’s Board of Directors declared a regular quarterly cash dividend of $0.40 per common share, which, combined, reduced stockholders’ equity by $14.8 million.

LIQUIDITY AND DEPOSITS

Liquidity is a measure of the Company’s ability to generate sufficient cash to meet present and future financial obligations in a timely manner. The Company’s primary sources of funds are customer deposits, FHLBank advances, other borrowings, loan repayments, unpledged securities, proceeds from sales of loans and available-for-sale securities and funds provided from operations. The Company utilizes some or all of these sources of funds depending on the comparative costs and availability at the time. The Company has from time to time chosen not to pay rates on deposits as high as the rates paid by certain of its competitors and, when believed to be appropriate, supplements deposits with less expensive alternative sources of funds. Management believes that the Company maintains overall liquidity sufficient to satisfy its depositors’ requirements and meet its borrowers’ credit needs.

At March 31, 2025, the Company had the following available secured lines and on-balance sheet liquidity:

	March 31, 2025
Federal Home Loan Bank line	$1,172.6 million
Federal Reserve Bank line	370.5 million
Cash and cash equivalents	217.2 million
Unpledged securities – Available-for-sale	312.9 million
Unpledged securities – Held-to-maturity	24.5 million

During the three months ended March 31, 2025, the Company’s total deposits increased $152.5 million. Interest-bearing checking balances increased $33.5 million (1.5%), primarily in certain money market accounts, and non-interest-bearing checking balances increased $9.7 million (1.2%). Time deposits generated through the Company’s banking center and corporate services networks decreased $14.1 million (1.8%). Brokered deposits increased $123.3 million (16.0%) through a variety of sources.

At March 31, 2025, the Company had the following deposit balances:

	March 31, 2025
Interest-bearing checking	$2,248.3 million
Non-interest-bearing checking	852.7 million
Time deposits	761.7 million
Brokered deposits	895.4 million

At March 31, 2025, the Company estimated that its uninsured deposits, excluding deposit accounts of the Company’s consolidated subsidiaries, were approximately $683.9 million (14% of total deposits).

LOANS

Total net loans, excluding mortgage loans held for sale, were generally flat at $4.69 billion at March 31, 2025 compared to December 31, 2024. Increases in other residential (multi-family) loans of $43.2 million and construction loans of $29.1 million were offset by decreases in commercial real estate loans and one- to four-family residential loans of $54.4 million and $10.3 million, respectively.

The pipeline of unfunded loan commitments decreased in the first quarter of 2025, primarily due to a decline related to construction loans. The unfunded portion of construction loans remained significant, notwithstanding this decline.

For additional details about the Company’s loan portfolio, please refer to the quarterly loan portfolio presentation available on the Company’s Investor Relations website under “Presentations.”

Loan commitments and the unfunded portion of loans at the dates indicated were as follows (in thousands):

		March 31, 2025		December 31, 2024		December 31, 2023		December 31, 2022
Closed non-construction loans with unused available lines
Secured by real estate (one- to four-family)	$	211,119	$	205,599	$	203,964	$	199,182
Secured by real estate (not one- to four-family)		—		—		—		—
Not secured by real estate – commercial business		106,211		106,621		82,435		104,452

Closed construction loans with unused available lines
Secured by real estate (one-to four-family)		96,807		94,501		101,545		100,669
Secured by real estate (not one-to four-family)		657,828		703,947		719,039		1,444,450

Loan commitments not closed
Secured by real estate (one-to four-family)		19,264		14,373		12,347		16,819
Secured by real estate (not one-to four-family)		50,296		53,660		48,153		157,645
Not secured by real estate – commercial business		18,484		22,884		11,763		50,145

	$	1,160,009	$	1,201,585	$	1,179,246	$	2,073,362

PROVISION FOR CREDIT LOSSES AND ALLOWANCE FOR CREDIT LOSSES

During the quarter ended March 31, 2025, the Company did not record a provision expense on its portfolio of outstanding loans, compared to a provision expense of $500,000 in the same period in 2024. Total net charge-offs were $56,000 for the three months ended March 31, 2025, compared to net charge-offs of $83,000 during the same period in the prior year. Additionally, for the quarter ended March 31, 2025, the Company recorded a negative provision for losses on unfunded commitments of $348,000, compared to a provision expense of $130,000 for the same period in 2024.

The Bank’s allowance for credit losses as a percentage of total loans was 1.36% at March 31, 2025, consistent with 1.36% at December 31, 2024. Management considers the allowance for credit losses adequate to cover losses inherent in the Bank’s loan portfolio at March 31, 2025, based on recent reviews of the portfolio and current economic conditions. However, if challenging economic conditions persist or worsen, or if management’s assessment of the loan portfolio changes, additional provisions for credit losses may be required, which could adversely impact the Company’s future financial performance.

ASSET QUALITY

At March 31, 2025, non-performing assets were $9.5 million, a decrease of $48,000 from $9.6 million at December 31, 2024. Non-performing assets as a percentage of total assets were 0.16% at both March 31, 2025 and December 31, 2024.

Activity in the non-performing loans categories during the quarter ended March 31, 2025, was as follows:

		Beginning Balance, January 1		Additions to Non- Performing		Removed from Non- Performing		Transfers to Potential Problem Loans		Transfers to Foreclosed Assets and Repossessions			Charge- Offs			Payments			Ending Balance, March 31
		(In thousands)

One- to four-family construction	$	—	$	—	$	—	$	—	$	—		$	—		$	—		$	—
Subdivision construction		—		—		—		—		—			—			—			—
Land development		464		—		—		—		—			—			(96	)		368
Commercial construction		—		—		—		—		—			—			—			—
One- to four-family residential		2,631		473		—		—		—			—			(28	)		3,076
Other residential (multi-family)		—		—		—		—		—			—			—			—
Commercial real estate		77		—		—		—		(77	)		—			—			—
Commercial business		384		—		—		—		—			(135	)		(249	)		—
Consumer		17		24		—		—		—			—			(3	)		38
Total non-performing loans	$	3,573	$	497	$	—	$	—	$	(77	)	$	(135	)	$	(376	)	$	3,482

Compared to December 31, 2024, non-performing loans decreased $91,000.
The non-performing one- to four-family residential category consisted of nine loans at March 31, 2025, two of which were added during the current quarter.
The largest relationship in the one- to four-family residential category totaled $884,000 at March 31, 2025, was added to non-performing loans in 2024 and is collateralized by a single-family residential property in the Buffalo, N.Y. area.
The land development category consisted of one loan added in 2024. This loan is collateralized by improved commercial land in the Omaha, Neb. area.

Activity in the potential problem loans categories during the quarter ended March 31, 2025, was as follows:

		Beginning Balance, January 1		Additions to Potential Problem		Removed from Potential Problem			Transfers to Non- Performing		Transfers to Foreclosed Assets and Repossessions		Charge- Offs			Loan Advances (Payments)			Ending Balance, March 31
		(In thousands)

One- to four-family construction	$	—	$	—	$	—		$	—	$	—	$	—		$	—		$	—
Subdivision construction		—		—		—			—		—		—			—			—
Land development		—		—		—			—		—		—			—			—
Commercial construction		—		—		—			—		—		—			—			—
One- to four-family residential		1,202		1,099		(151	)		—		—		(9	)		(13	)		2,128
Other residential (multi-family)		—		—		—			—		—		—			—			—
Commercial real estate		4,331		—		—			—		—		—			(18	)		4,313
Commercial business		—		—		—			—		—		—			—			—
Consumer		1,529		138		(642	)		—		—		—			(14	)		1,011
Total potential problem loans	$	7,062	$	1,237	$	(793	)	$	—	$	—	$	(9	)	$	(45	)	$	7,452

Compared to December 31, 2024, potential problem loans increased $390,000.
At March 31, 2025, the commercial real estate category consisted of three loans, all of which are part of one relationship and were added in 2024.
The commercial real estate relationship is collateralized by three nursing care facilities located in southwest Missouri. The borrower’s business cash flow was negatively impacted by a reduction in labor participation and increased operating costs as well as ongoing changes to the Missouri Medicaid reimbursement rate. Monthly payments were timely made prior to the transfer to this category and have continued to be paid timely.
At March 31, 2025, the one- to four-family residential category consisted of 12 loans, one of which was added to potential problem loans during the current quarter and one of which was transferred from the consumer category (the loan was drawn on a home equity line of credit) during the current quarter.
The largest relationship in the one- to four-family category, mentioned above as the loan transferred from the consumer category, totaled $966,000 and is collateralized by a single-family residential property in the Orlando, Fla. area.
At March 31, 2025, the consumer category of potential problem loans consisted of 16 loans, six of which were added during the current quarter.
The largest loan in the consumer category is a home equity loan totaling $748,000 related to the nursing care facility relationship, noted above.

Activity in the foreclosed assets and repossessions categories during the quarter ended March 31, 2025 was as follows:

		Beginning Balance, January 1		Additions		ORE and Repossession Sales			Capitalized Costs		ORE and Repossession Write-Downs		Ending Balance, March 31
		(In thousands)

One-to four-family construction	$	—	$	—	$	—		$	—	$	—	$	—
Subdivision construction		—		—		—			—		—		—
Land development		—		—		—			—		—		—
Commercial construction		—		—		—			—		—		—
One- to four-family residential		—		—		—			—		—		—
Other residential (multi-family)		—		—		—			—		—		—
Commercial real estate		5,960		76		—			—		—		6,036
Commercial business		—		—		—			—		—		—
Consumer		33		2		(35	)		—		—		—
Total foreclosed assets and repossessions	$	5,993	$	78	$	(35	)	$	—	$	—	$	6,036

Compared to December 31, 2024, foreclosed assets increased $43,000.
The commercial real estate category consisted of two foreclosed properties, one of which, totaling $76,000, was added during the current quarter.
The largest asset in the commercial real estate category, totaling $6.0 million, consisted of an office building located in Clayton, Mo. This asset was foreclosed upon in the fourth quarter of 2024.

BUSINESS INITIATIVES

During the quarter ended March 31, 2025, no material changes occurred regarding the status of the litigation and the agreement in principle between Great Southern and its third-party vendor involving a previously proposed new core banking platform. No assurance can be given as to when or whether final agreements will be executed and a full settlement of the matter will be achieved.

Technology updates and advancements continue with the Company’s current core provider. Projects involving a full array of products and services are moving forward, with completions expected beginning in the third quarter of 2025 and continuing into 2026.

During the quarter ended March 31, 2025, the Company installed 10 ITM units in the St. Louis, Mo. market, replacing existing end-of-life ATM units. The ITMs, all located at banking center locations, offer customers live teller services, extended banking hours, and services beyond those traditionally available via an ATM.

In March 2025, the Company began construction of a new banking center at 723 N. Benton in Springfield, Mo., to replace the existing facility at that location. The new construction, designed as a next-generation banking center, will allow for flexibility in testing new designs, processes, technology and tools balanced with customer convenience. Construction is expected to be completed in the fourth quarter of 2025. During construction, customers are being served by a temporary facility on the property. The Company has 11 other banking centers and an Express Center in Springfield.

2025 Annual Meeting of Stockholders

The Company announced that its 2025 Annual Meeting of Stockholders will be held at 10 a.m. Central Time on May 7, 2025, and will be held in a virtual format. Stockholders will be able to attend the Annual Meeting via a live webcast. Holders of record of Great Southern Bancorp, Inc. common stock at the close of business on the record date, March 4, 2025, may vote during the live webcast of the Annual Meeting or by proxy. Please see the Company’s Notice of Annual Meeting and Proxy Statement available on the Company’s website,
www.GreatSouthernBank.com (click “About” then “Investor Relations”) for additional information about the virtual meeting.

Earnings Conference Call

The Company will host a conference call on Thursday, April 17, 2025, at 2:00 p.m. Central Time to discuss first quarter 2025 preliminary earnings. The call will be available live or in a recorded version at the Company’s Investor Relations website, http://investors.greatsouthernbank.com. Participants may register for the call at https://register-conf.media-server.com/register/BI2135774c93e14b34ad13657bf45a7dd2.

About Great Southern Bancorp, Inc.

Headquartered in Springfield, Missouri, Great Southern offers a broad range of banking services to customers. The Company operates 89 retail banking centers in Missouri, Iowa, Kansas, Minnesota, Arkansas and Nebraska and commercial lending offices in Atlanta, Charlotte, Chicago, Dallas, Denver, Omaha, and Phoenix. The common stock of Great Southern Bancorp, Inc. is listed on the Nasdaq Global Select Market under the symbol “GSBC.”

www.GreatSouthernBank.com

Forward-Looking Statements

When used in this press release and in other documents filed or furnished by Great Southern Bancorp, Inc. (the “Company”) with the Securities and Exchange Commission (the “SEC”), in the Company’s other press releases or other public or stockholder communications, and in oral statements made with the approval of an authorized executive officer, the words or phrases “may,” “might,” “could,” “should,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “believe,” “estimate,” “project,” “intends” or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements also include, but are not limited to, statements regarding plans, objectives, expectations or consequences of announced transactions, known trends and statements about future performance, operations, products and services of the Company. The Company’s ability to predict results or the actual effects of future plans or strategies is inherently uncertain, and the Company’s actual results could differ materially from those contained in the forward-looking statements.

Factors that could cause or contribute to such differences include, but are not limited to: (i) expected revenues, cost savings, earnings accretion, synergies and other benefits from the Company’s merger and acquisition activities might not be realized 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, might be greater than expected; (ii) changes in economic conditions, either nationally or in the Company’s market areas; (iii) the effects of any new or continuing public health issues on general economic and financial market conditions; (iv) fluctuations in interest rates, the effects of inflation or a potential recession, whether caused by Federal Reserve actions or otherwise; (v) the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; (vi) slower or negative economic growth caused by tariffs, changes in energy prices, supply chain disruptions or other factors; (vii) 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; (viii) the possibility of realized or unrealized losses on securities held in the Company’s investment portfolio; (ix) the Company’s ability to access cost-effective funding and maintain sufficient liquidity; (x) fluctuations in real estate values and both residential and commercial real estate market conditions; (xi) the ability to adapt successfully to technological changes to meet customers’ needs and developments in the marketplace; (xii) the possibility that security measures implemented might not be sufficient to mitigate the risk of a cyber-attack or cyber theft, and that such security measures might not protect against systems failures or interruptions; (xiii) legislative or regulatory changes that adversely affect the Company’s business; (xiv) changes in accounting policies and practices or accounting standards; (xv) results of examinations of the Company and Great Southern Bank by their regulators, including the possibility that the regulators may, among other things, require the Company to limit its business activities, change its business mix, increase its allowance for credit losses, write-down assets or increase its capital levels, or affect its ability to borrow funds or maintain or increase deposits, which could adversely affect its liquidity and earnings; (xvi) costs and effects of litigation, including settlements and judgments; (xvii) competition; and (xviii) natural disasters, war, terrorist activities or civil unrest and their effects on economic and business environments in which the Company operates. The Company wishes to advise readers that the factors listed above and other risks described in the Company’s most recent Annual Report on Form 10-K, including, without limitation, those described under “Item 1A. Risk Factors,” subsequent Quarterly Reports on Form 10-Q and other documents filed or furnished from time to time by the Company with the SEC (which are available on our website at www.greatsouthernbank.com and the SEC’s website at www.sec.gov), could affect the Company’s financial performance and cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements.

The Company does not undertake-and specifically declines any obligation- to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

The following tables set forth selected consolidated financial information of the Company at the dates and for the periods indicated. Financial data at all dates other than December 31, 2024, and for all periods is unaudited. In the opinion of management, all adjustments, which consist only of normal recurring accrual adjustments, necessary for a fair presentation of the results at and for such unaudited dates and periods have been included. The results of operations and other data for the three months ended March 31, 2025 and 2024, and the three months ended December 31, 2024, are not necessarily indicative of the results of operations which may be expected for any future period.


		March 31,		December 31,
		2025		2024
Selected Financial Condition Data:	(In thousands)

Total assets	$	5,993,842	$	5,981,628
Loans receivable, gross		4,761,378		4,761,848
Allowance for credit losses		64,704		64,760
Other real estate owned, net		6,036		5,993
Available-for-sale securities, at fair value		535,914		533,373
Held-to-maturity securities, at amortized cost		185,853		187,433
Deposits		4,758,046		4,605,549
Total borrowings		535,953		679,341
Total stockholders’ equity		613,293		599,568
Non-performing assets		9,518		9,566

		Three Months Ended					Three Months Ended
		March 31,					December 31,
		2025			2024		2024
		(In thousands)
Selected Operating Data:
Interest income	$	80,243		$	77,390	$	82,585
Interest expense		30,909			32,574		33,051
Net interest income		49,334			44,816		49,534
Provision (credit) for credit losses on loans and unfunded commitments		(348	)		630		1,556
Non-interest income		6,590			6,806		6,934
Non-interest expense		34,822			34,422		36,947
Provision for income taxes		4,290			3,163		3,043
Net income	$	17,160		$	13,407	$	14,922

	At or For the Three Months Ended				At or For the Three Months Ended
	March 31,				December 31,
	2025		2024		2024
	(Dollars in thousands, except per share data)
Per Common Share:
Net income (fully diluted)	$	1.47	$	1.13	$	1.27
Book value	$	53.03	$	48.31	$	51.14

Earnings Performance Ratios:
Annualized return on average assets		1.15%		0.93%		1.00%
Annualized return on average common stockholders’ equity		11.30%		9.36%		9.76%
Net interest margin		3.57%		3.32%		3.49%
Average interest rate spread		3.00%		2.66%		2.87%
Efficiency ratio		62.27%		66.68%		65.43%
Non-interest expense to average total assets		2.34%		2.39%		2.46%

Asset Quality Ratios:
Allowance for credit losses to period-end loans		1.36%		1.40%		1.36%
Non-performing assets to period-end assets		0.16%		0.37%		0.16%
Non-performing loans to period-end loans		0.07%		0.46%		0.07%
Annualized net charge-offs to average loans		0.00%		0.01%		0.01%


Great Southern Bancorp, Inc. and Subsidiaries Consolidated Statements of Financial Condition (In thousands, except number of shares)

		March 31, 2025			December 31, 2024

Assets
Cash	$	106,336		$	109,366
Interest-bearing deposits in other financial institutions		110,845			86,390
Cash and cash equivalents		217,181			195,756

Available-for-sale securities		535,914			533,373
Held-to-maturity securities		185,853			187,433
Mortgage loans held for sale		6,857			6,937
Loans receivable, net of allowance for credit losses of $64,704 – March 2025; $64,760 – December 2024		4,690,636			4,690,393
Interest receivable		21,504			20,430
Prepaid expenses and other assets		132,930			136,594
Other real estate owned and repossessions, net		6,036			5,993
Premises and equipment, net		132,165			132,466
Goodwill and other intangible assets		9,985			10,094
Federal Home Loan Bank stock and other interest-earning assets		25,813			28,392
Current and deferred income taxes		28,968			33,767

Total Assets	$	5,993,842		$	5,981,628

Liabilities and Stockholders’ Equity
Liabilities
Deposits	$	4,758,046		$	4,605,549
Securities sold under reverse repurchase agreements with customers		75,322			64,444
Short-term borrowings		359,907			514,247
Subordinated debentures issued to capital trust		25,774			25,774
Subordinated notes		74,950			74,876
Accrued interest payable		5,416			12,761
Advances from borrowers for taxes and insurance		7,451			5,272
Accounts payable and accrued expenses		65,528			70,634
Liability for unfunded commitments		8,155			8,503
Total Liabilities		5,380,549			5,382,060

Stockholders’ Equity
Capital stock
Preferred stock, $.01 par value; authorized 1,000,000 shares; issued and outstanding March 2025 and December 2024 -0- shares		—			—
Common stock, $.01 par value; authorized 20,000,000 shares; issued and outstanding March 2025 – 11,565,211 shares; December 2024 – 11,723,548 shares		116			117
Additional paid-in capital		51,076			50,336
Retained earnings		606,239			603,477
Accumulated other comprehensive loss		(44,138	)		(54,362	)
Total Stockholders’ Equity		613,293			599,568

Total Liabilities and Stockholders’ Equity	$	5,993,842		$	5,981,628


Great Southern Bancorp, Inc. and Subsidiaries Consolidated Statements of Income (In thousands, except per share data)

		Three Months Ended						Three Months Ended
		March 31,						December 31,
		2025			2024			2024
Interest Income
Loans	$	73,071		$	71,076		$	75,380
Investment securities and other		7,172			6,314			7,205
		80,243			77,390			82,585
Interest Expense
Deposits		24,600			27,637			25,799
Securities sold under reverse repurchase agreements		371			333			295
Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities		4,450			3,044			5,417
Subordinated debentures issued to capital trust		382			454			434
Subordinated notes		1,106			1,106			1,106
		30,909			32,574			33,051

Net Interest Income		49,334			44,816			49,534
Provision for Credit Losses on Loans		—			500			—
Provision (Credit) for Unfunded Commitments		(348	)		130			1,556
Net Interest Income After Provision for Credit Losses and Provision (Credit) for Unfunded Commitments		49,682			44,186			47,978

Noninterest Income
Commissions		262			381			217
Overdraft and Insufficient funds fees		1,215			1,289			1,314
POS and ATM fee income and service charges		3,234			3,183			3,348
Net gains on loan sales		601			677			899
Late charges and fees on loans		243			167			132
Loss on derivative interest rate products		(24	)		(13	)		(1	)
Other income		1,059			1,122			1,025
		6,590			6,806			6,934

Noninterest Expense
Salaries and employee benefits		20,129			19,656			19,509
Net occupancy and equipment expense		8,533			7,839			8,300
Postage		931			807			884
Insurance		1,165			1,144			1,163
Advertising		290			350			955
Office supplies and printing		266			267			273
Telephone		706			721			697
Legal, audit and other professional fees		1,038			1,725			1,001
Expense (income) on other real estate and repossessions		(70	)		61			(114	)
Acquired intangible asset amortization		108			108			108
Other operating expenses		1,726			1,744			4,171
		34,822			34,422			36,947

Income Before Income Taxes		21,450			16,570			17,965
Provision for Income Taxes		4,290			3,163			3,043

Net Income	$	17,160		$	13,407		$	14,922

Earnings Per Common Share
Basic	$	1.47		$	1.14		$	1.27
Diluted	$	1.47		$	1.13		$	1.27

Dividends Declared Per Common Share	$	0.40		$	0.40		$	0.40

Average Balances, Interest Rates and Yields

The following table presents, for the periods indicated, the total dollar amounts of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Average balances of loans receivable include the average balances of nonaccrual loans for each period. Interest income on loans includes interest received on nonaccrual loans on a cash basis. Interest income on loans also includes the amortization of net loan fees, which were deferred in accordance with accounting standards. Net fees included in interest income were $970,000 and $1.2 million for the three months ended March 31, 2025 and 2024, respectively. Tax-exempt income was not calculated on a tax equivalent basis. The table does not reflect any effect of income taxes.

	March 31, 2025			Three Months Ended March 31, 2025							Three Months Ended March 31, 2024
				Average				Yield/			Average				Yield/
	Yield/Rate			Balance			Interest	Rate			Balance			Interest	Rate
	(Dollars in thousands)
Interest-earning assets:
Loans receivable:
One- to four-family residential	4.18	%	$	830,615		$	8,568	4.18	%	$	889,969		$	8,697	3.93	%
Other residential	6.86			1,546,209			26,450	6.94			959,975			16,858	7.06
Commercial real estate	6.12			1,510,432			23,015	6.18			1,499,641			22,768	6.11
Construction	7.08			490,586			8,652	7.15			856,571			15,844	7.44
Commercial business	6.03			211,791			3,822	7.32			286,074			4,609	6.48
Other loans	6.41			166,424			2,564	6.25			173,636			2,300	5.33

Total loans receivable	6.13			4,756,057			73,071	6.23			4,665,866			71,076	6.13

Investment securities	3.12			738,122			6,074	3.34			669,680			5,010	3.01
Other interest-earning assets	4.33			105,286			1,098	4.23			100,503			1,304	5.22

Total interest-earning assets	5.73			5,599,465			80,243	5.81			5,436,049			77,390	5.73
Non-interest-earning assets:
Cash and cash equivalents				100,558							90,474
Other non-earning assets				262,490							235,817
Total assets			$	5,962,513						$	5,762,340

Interest-bearing liabilities:
Interest-bearing demand and savings	1.37		$	2,221,475			7,797	1.42		$	2,223,780			9,482	1.71
Time deposits	3.47			772,054			6,714	3.53			937,720			9,165	3.93
Brokered deposits	4.46			892,611			10,089	4.58			688,820			8,990	5.25
Total deposits	2.49			3,886,140			24,600	2.57			3,850,320			27,637	2.89
Securities sold under reverse repurchase agreements	2.09			82,400			371	1.83			74,468			333	1.80
Short-term borrowings, overnight FHLBank borrowings and other interest-bearing liabilities	4.53			392,646			4,450	4.60			241,591			3,044	5.07
Subordinated debentures issued to capital trust	6.15			25,774			382	6.01			25,774			454	7.08
Subordinated notes	5.90			74,919			1,106	5.99			74,619			1,106	5.96

Total interest-bearing liabilities	2.73			4,461,879			30,909	2.81			4,266,772			32,574	3.07
Non-interest-bearing liabilities:
Demand deposits				821,759							854,849
Other liabilities				71,360							67,879
Total liabilities				5,354,998							5,189,500
Stockholders’ equity				607,515							572,840
Total liabilities and stockholders’ equity			$	5,962,513						$	5,762,340

Net interest income:						$	49,334						$	44,816
Interest rate spread	3.00	%						3.00	%						2.66	%
Net interest margin*								3.57	%						3.32	%
Average interest-earning assets to average interest-bearing liabilities				125.5	%						127.4	%

*Defined as the Company’s net interest income divided by average total interest-earning assets.

NON-GAAP FINANCIAL MEASURES

This document contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (“GAAP”). This non-GAAP financial information includes the tangible common equity to tangible assets ratio.

In calculating the ratio of tangible common equity to tangible assets, we subtract period-end intangible assets from common equity and from total assets. Management believes that the presentation of this measure excluding the impact of intangible assets provides useful supplemental information that is helpful in understanding our financial condition and results of operations, as it provides a method to assess management’s success in utilizing our tangible capital as well as our capital strength. Management also believes that providing a measure that excludes balances of intangible assets, which are subjective components of valuation, facilitates the comparison of our performance with the performance of our peers. In addition, management believes that this is a standard financial measure used in the banking industry to evaluate performance.

This non-GAAP financial measurement is supplemental and is not a substitute for any analysis based on GAAP financial measures. Because not all companies use the same calculation of non-GAAP measures, this presentation may not be comparable to other similarly titled measures as calculated by other companies.

Non-GAAP Reconciliation: Ratio of Tangible Common Equity to Tangible Assets

		March 31,			December 31,
		2025			2024
		(Dollars in thousands)

Common equity at period end	$	613,293		$	599,568
Less: Intangible assets at period end		9,985			10,094
Tangible common equity at period end (a)	$	603,308		$	589,474

Total assets at period end	$	5,993,842		$	5,981,628
Less: Intangible assets at period end		9,985			10,094
Tangible assets at period end (b)	$	5,983,857		$	5,971,534

Tangible common equity to tangible assets (a) / (b)		10.08	%		9.87	%

CONTACT:

Jeff Tryka, CFA,
Investor Relations,
(616) 233-0500
GSBC@lambert.com

The MIL Network –

April 17, 2025

MIL-OSI Security: Kalispell man sentenced to over 10 years in prison for conspiring to distribute drugs on the Blackfeet Indian Reservation

Source: Office of United States Attorneys

GREAT FALLS – A Kalispell man who conspired to distribute drugs on the Blackfeet Indian Reservation was sentenced today to 128 months in prison to be followed by 5 years of supervised release, U.S. Attorney Kurt Alme said.

Cameron Lee Richard Carr, 34, pleaded guilty in September 2024 to possession with intent to distribute methamphetamine and fentanyl.

Chief U.S. District Judge Brian Morris presided.

The government alleged in court documents that in early November 2023, law enforcement received information Carr was trafficking illegal drugs from Kalispell, Montana to Browning, Montana. On November 28, 2023, Carr was observed leaving the Going to the Sun Inn in Browning. A Blackfeet Law Enforcement Services officer saw Carr run a stop sign and attempted to conduct a traffic stop. Carr fled before eventually stopping his vehicle and attempting to run away on foot. He was apprehended by the officer and arrested. The officer saw Carr reach for his waistband when he was arrested, so the officer searched him for weapons before placing him in a patrol vehicle. The officer recovered suspected meth and fentanyl from and noticed a 9 mm Ruger handgun on the ground near the area where Carr was apprehended.

Law enforcement searched Carr’s vehicle and seized 11 additional firearms, 500 grams of methamphetamine, 168 grams of fentanyl in pill and powder form, and small amounts of heroin, oxycodone, morphine, and cocaine. On December 1, 2023, during an interview with law enforcement, Carr admitted distributing drugs in Browning.

The U.S. Attorney’s Office prosecuted the case and the investigation was conducted by the FBI, DEA, Blackfeet Law Enforcement Services, and the Glacier County Sheriff’s Office.

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.

XXX

MIL Security OSI –

April 17, 2025

MIL-OSI USA: Former Gambian soldier convicted on torture charges in unprecedented US trial, following ICE investigation

Source: US Immigration and Customs Enforcement

DENVER — A former member of the Gambian military was convicted April 15 on torture charges, following his involvement in crimes committed while the West African country’s then-President, Yahya Jammeh, was still in power.

Michael Sang Correa, 46, was indicted in 2020 and is the first non-United States citizen to be convicted under the U.S. criminal torture law. He was found guilty of inflicting torture on specific individuals as well as conspiring to commit torture against suspected opponents of Jammeh’s while serving in a military unit within the Gambia Armed Forces known as the “Junglers.”

“Correa’s crimes caught up with him today,” said U.S. Immigration and Customs Enforcement Homeland Security Investigations Denver Special Agent in Charge Steve Cagen, who also oversees Colorado, Montana and Wyoming. “Correa chose the wrong country to try to escape from justice. HSI actively investigates and apprehends human rights violators who run from their criminal pasts and come here. We have a zero-tolerance policy for human rights violators.”

“Michael Sang Correa tried to evade responsibility for his crimes in The Gambia by coming to the United States and hiding his past,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “But we found him, we investigated him, and we prosecuted him. The lesson is: if you commit violent crimes — let alone torture or other human rights violations — do not come to the United States. If you do, the Department of Justice, together with its law enforcement partners, will leave no stone unturned to see that your crimes are exposed and justice is served. I thank the jurors for their service and the witnesses for the courage to relive the horror they experienced at Correa’s hands.”

“The torture inflicted by Michael Sang Correa and his co-conspirators is abhorrent,” said acting U.S. Attorney J. Bishop Grewell for the District of Colorado. “Today’s verdict shows you can’t get away with coming to Colorado to hide from your past crimes. The jurors are to be commended for their service throughout this trial and the witnesses for traveling so far to serve the interests of justice.”

Evidence presented at trial proved that in March 2006, shortly after a failed coup attempt, Correa and his co-conspirators transported the victims to Gambia’s main prison, known as Mile 2 Prison, where they subjected the victims to severe physical and mental abuses.

For the rest of the month of March and well into April 2006, Correa and his co-conspirators beat, stabbed, burned and electrocuted the victims, among other horrific acts. One victim testified that he had his thigh burned by hot, molten plastic; the Junglers also placed the victim in a large bag, suspended him in the air, and dropped him to the ground. Another victim testified that Correa and his co-conspirators suffocated him with a plastic bag and put the barrel of a pistol in his mouth. In addition to suffocation from plastic bags, another victim testified that Correa and his co-conspirators electrocuted him on his body, including his genitals; hanged him upside down and beat him in that position; and stabbed him in the shoulder. A fourth victim endured electrocution and was hit in the head with a pistol. A fifth victim testified that he had cigarettes extinguished into his skin, experienced electrocution, and that he was struck in the face with a hammer.

Correa came to the U.S. in December 2016, eventually settling in Denver. Having overstayed his visa, ICE arrested Correa in 2019 and subsequently placed him in removal proceedings.

Correa faces a maximum penalty of 20 years in prison for each of the five torture counts and the count of conspiracy to commit torture. He will remain in U.S. custody pending his sentencing.

ICE HSI Denver investigated this case, with support from HSI agents in Dakar, Senegal, as well as personnel at the U.S. Embassy in Banjul and the FBI Legal Attaché in Dakar. The Human Rights Violators and War Crimes Center also provided significant support. Established in 2009, the HRVWCC leverages the expertise of criminal investigators, attorneys, historians, intelligence analysts and federal partners to provide a whole of government approach to prevent the U.S. from becoming a haven for individuals who commit war crimes, genocide, torture and other human rights abuses around the globe.

Currently, ICE has more than 180 active investigations into suspected human rights violators and is pursuing more than 1,945 leads and removals cases involving suspected human rights violators from 95 different countries. The center has issued more than 79,000 lookouts since 2003, for potential perpetrators of human rights abuses and stopped over 390 human rights violators and war crimes suspects from entering the U.S.

Members of the public who have information about foreign nationals suspected of engaging in human rights abuses or war crimes are urged to call the ICE Tip Line at 1-866-DHS-2-ICE (1-866-347-2423) or internationally at 001-1802-872-6199. You can also email HRV.ICE@ice.dhs.gov or complete the online tip form.

MIL OSI USA News –

April 17, 2025

MIL-OSI Economics: AI-powered deception: Emerging fraud threats and countermeasures

Source: Microsoft

Headline: AI-powered deception: Emerging fraud threats and countermeasures

Introduction | Security snapshot | Threat briefing
Defending against attacks | Expert profile

Microsoft maintains a continuous effort to protect its platforms and customers from fraud and abuse. From blocking imposters on Microsoft Azure and adding anti-scam features to Microsoft Edge, to fighting tech support fraud with new features in Windows Quick Assist, this edition of Cyber Signals takes you inside the work underway and important milestones achieved that protect customers.

We are all defenders. 

Between April 2024 and April 2025, Microsoft:

Thwarted $4 billion in fraud attempts.
Rejected 49,000 fraudulent partnership enrollments.
Blocked about 1.6 million bot signup attempts per hour.

The evolution of AI-enhanced cyber scams

AI has started to lower the technical bar for fraud and cybercrime actors looking for their own productivity tools, making it easier and cheaper to generate believable content for cyberattacks at an increasingly rapid rate. AI software used in fraud attempts runs the gamut, from legitimate apps misused for malicious purposes to more fraud-oriented tools used by bad actors in the cybercrime underground.

AI tools can scan and scrape the web for company information, helping cyberattackers build detailed profiles of employees or other targets to create highly convincing social engineering lures. In some cases, bad actors are luring victims into increasingly complex fraud schemes using fake AI-enhanced product reviews and AI-generated storefronts, where scammers create entire websites and e-commerce brands, complete with fake business histories and customer testimonials. By using deepfakes, voice cloning, phishing emails, and authentic-looking fake websites, threat actors seek to appear legitimate at wider scale.

According to the Microsoft Anti-Fraud Team, AI-powered fraud attacks are happening globally, with much of the activity coming from China and Europe, specifically Germany due in part to Germany’s status as one of the largest e-commerce and online services markets in the European Union (EU). The larger a digital marketplace in any region, the more likely a proportional degree of attempted fraud will take place.

E-commerce fraud

Fraudulent e-commerce websites can be set up in minutes using AI and other tools requiring minimal technical knowledge. Previously, it would take threat actors days or weeks to stand up convincing websites. These fraudulent websites often mimic legitimate sites, making it challenging for consumers to identify them as fake.

Using AI-generated product descriptions, images, and customer reviews, customers are duped into believing they are interacting with a genuine merchant, exploiting consumer trust in familiar brands.

AI-powered customer service chatbots add another layer of deception by convincingly interacting with customers. These bots can delay chargebacks by stalling customers with scripted excuses and manipulating complaints with AI-generated responses that make scam sites appear professional.

In a multipronged approach, Microsoft has implemented robust defenses across our products and services to protect customers from AI-powered fraud. Microsoft Defender for Cloud provides comprehensive threat protection for Azure resources, including vulnerability assessments and threat detection for virtual machines, container images, and endpoints.

Microsoft Edge features website typo protection and domain impersonation protection using deep learning technology to help users avoid fraudulent websites. Edge has also implemented a machine learning-based Scareware Blocker to identify and block potential scam pages and deceptive pop-up screens with alarming warnings claiming a computer has been compromised. These attacks try to frighten users into calling fraudulent support numbers or downloading harmful software.

Job and employment fraud

The rapid advancement of generative AI has made it easier for scammers to create fake listings on various job platforms. They generate fake profiles with stolen credentials, fake job postings with auto-generated descriptions, and AI-powered email campaigns to phish job seekers. AI-powered interviews and automated emails enhance the credibility of job scams, making it harder for job seekers to identify fraudulent offers.

To prevent this, job platforms should introduce multifactor authentication for employer accounts to make it harder for bad actors to take over legitimate hirers’ listings and use available fraud-detection technologies to catch suspicious content.

Fraudsters often ask for personal information, such as resumes or even bank account details, under the guise of verifying the applicant’s information. Unsolicited text and email messages offering employment opportunities that promise high pay for minimal qualifications are typically an indicator of fraud.

Employment offers that include requests for payment, offers that seem too good to be true, unsolicited offers or interview requests over text message, and a lack of formal communication platforms can all be indicators of fraud.

Tech support scams

Tech support scams are a type of fraud where scammers trick victims into unnecessary technical support services to fix a device or software problems that don’t exist. The scammers may then gain remote access to a computer—which lets them access all information stored on it, and on any network connected to it or install malware that gives them access to the computer and sensitive data.

Tech support scams are a case where elevated fraud risks exist, even if AI does not play a role. For example, in mid-April 2024, Microsoft Threat Intelligence observed the financially motivated and ransomware-focused cybercriminal group Storm-1811 abusing Windows Quick Assist software by posing as IT support. Microsoft did not observe AI used in these attacks; Storm-1811 instead impersonated legitimate organizations through voice phishing (vishing) as a form of social engineering, convincing victims to grant them device access through Quick Assist.

Quick Assist is a tool that enables users to share their Windows or macOS device with another person over a remote connection. Tech support scammers often pretend to be legitimate IT support from well-known companies and use social engineering tactics to gain the trust of their targets. They then attempt to employ tools like Quick Assist to connect to the target’s device.

Quick Assist and Microsoft are not compromised in these cyberattack scenarios; however, the abuse of legitimate software presents risk Microsoft is focused on mitigating. Informed by Microsoft’s understanding of evolving cyberattack techniques, the company’s anti-fraud and product teams work closely together to improve transparency for users and enhance fraud detection techniques.

The Storm-1811 cyberattacks highlight the capability of social engineering to circumvent security defenses. Social engineering involves collecting relevant information about targeted victims and arranging it into credible lures delivered through phone, email, text, or other mediums. Various AI tools can quickly find, organize, and generate information, thus acting as productivity tools for cyberattackers. Although AI is a new development, enduring measures to counter social engineering attacks remain highly effective. These include increasing employee awareness of legitimate helpdesk contact and support procedures, and applying Zero Trust principles to enforce least privilege across employee accounts and devices, thereby limiting the impact of any compromised assets while they are being addressed.

Microsoft has taken action to mitigate attacks by Storm-1811 and other groups by suspending identified accounts and tenants associated with inauthentic behavior. If you receive an unsolicited tech support offer, it is likely a scam. Always reach out to trusted sources for tech support. If scammers claim to be from Microsoft, we encourage you to report it directly to us at https://www.microsoft.com/reportascam.

Building on the Secure Future Initiative (SFI), Microsoft is taking a proactive approach to ensuring our products and services are “Fraud-resistant by Design.” In January 2025, a new fraud prevention policy was introduced: Microsoft product teams must now perform fraud prevention assessments and implement fraud controls as part of their design process.

Recommendations

Strengthen employer authentication: Fraudsters often hijack legitimate company profiles or create fake recruiters to deceive job seekers. To prevent this, job platforms should introduce multifactor authentication and Verified ID as part of Microsoft Entra ID for employer accounts, making it harder for unauthorized users to gain control.
Monitor for AI-based recruitment scams: Companies should deploy deepfake detection algorithms to identify AI-generated interviews where facial expressions and speech patterns may not align naturally.
Be cautious of websites and job listings that seem too good to be true: Verify the legitimacy of websites by checking for secure connections (https) and using tools like Microsoft Edge’s typo protection.
Avoid providing personal information or payment details to unverified sources: Look for red flags in job listings, such as requests for payment or communication through informal platforms like text messages, WhatsApp, nonbusiness Gmail accounts, or requests to contact someone on a personal device for more information.

Using Microsoft’s security signal to combat fraud

Microsoft is actively working to stop fraud attempts using AI and other technologies by evolving large-scale detection models based on AI, such as machine learning, to play defense by learning from and mitigating fraud attempts. Machine learning is the process that helps a computer learn without direct instruction using algorithms to discover patterns in large datasets. Those patterns are then used to create a comprehensive AI model, allowing for predictions with high accuracy.

We have developed in-product safety controls that warn users about potential malicious activity and integrate rapid detection and prevention of new types of attacks.

Our fraud team has developed domain impersonation protection using deep-learning technology at the domain creation stage, to help protect against fraudulent e-commerce websites and fake job listings. Microsoft Edge has incorporated website typo protection, and we have developed AI-powered fake job detection systems for LinkedIn.

Microsoft Defender Smartscreen is a cloud-based security feature that aims to prevent unsafe browsing habits by analyzing websites, files, and applications based on their reputation and behavior. It is integrated into Windows and the Edge browser to help protect users from phishing attacks, malicious websites, and potentially harmful downloads.

Furthermore, Microsoft’s Digital Crimes Unit (DCU) partners with others in the private and public sector to disrupt the malicious infrastructure used by criminals perpetuating cyber-enabled fraud. The team’s longstanding collaboration with law enforcement around the world to respond to tech support fraud has resulted in hundreds of arrests and increasingly severe prison sentences worldwide. The DCU is applying key learnings from past actions to disrupt those who seek to abuse generative AI technology for malicious or fraudulent purposes.

Quick Assist features and remote help combat tech support fraud

To help combat tech support fraud, we have incorporated warning messages to alert users about possible tech support scams in Quick Assist before they grant access to someone approaching them purporting to be an authorized IT department or other support resource.

Windows users must read and click the box to acknowledge the security risk of granting remote access to the device.

Microsoft has significantly enhanced Quick Assist protection for Windows users by leveraging its security signal. In response to tech support scams and other threats, Microsoft now blocks an average of 4,415 suspicious Quick Assist connection attempts daily, accounting for approximately 5.46% of global connection attempts. These blocks target connections exhibiting suspicious attributes, such as associations with malicious actors or unverified connections.

Microsoft’s continual focus on advancing Quick Assist safeguards seeks to counter adaptive cybercriminals, who previously targeted individuals opportunistically with fraudulent connection attempts, but more recently have sought to target enterprises with more organized cybercrime campaigns that Microsoft’s actions have helped disrupt.

Our Digital Fingerprinting capability, which leverages AI and machine learning, drives these safeguards by providing fraud and risk signals to detect fraudulent activity. If our risk signals detect a possible scam, the Quick Assist session is automatically ended. Digital Fingerprinting works by collecting various signals to detect and prevent fraud.

For enterprises combating tech support fraud, Remote Help is another valuable resource for employees. Remote Help is designed for internal use within an organization and includes features that make it ideal for enterprises.

By reducing scams and fraud, Microsoft aims to enhance the overall security of its products and protect its users from malicious activities.

Consumer protection tips

Fraudsters exploit psychological triggers such as urgency, scarcity, and trust in social proof. Consumers should be cautious of:

Impulse buying—Scammers create a sense of urgency with “limited-time” deals and countdown timers.
Trusting fake social proof—AI generates fake reviews, influencer endorsements, and testimonials to appear legitimate.
Clicking on ads without verification—Many scam sites spread through AI-optimized social media ads. Consumers should cross-check domain names and reviews before purchasing.
Ignoring payment security—Avoid direct bank transfers or cryptocurrency payments, which lack fraud protections.

Job seekers should verify employer legitimacy, be on the lookout for common job scam red flags, and avoid sharing personal or financial information with unverified employers.

Verify employer legitimacy—Cross-check company details on LinkedIn, Glassdoor, and official websites to verify legitimacy.
Notice common job scam red flags—If a job requires upfront payments for training materials, certifications, or background checks, it is likely a scam. Unrealistic salaries or no-experience-required remote positions should be approached with skepticism. Emails from free domains (such as johndoehr@gmail.com instead of hr@company.com) are also typically indicators of fraudulent activity.
Be cautious of AI-generated interviews and communications—If a video interview seems unnatural, with lip-syncing delays, robotic speech, or odd facial expressions, it could be deepfake technology at work. Job seekers should always verify recruiter credentials through the company’s official website before engaging in any further discussions.
Avoid sharing personal or financial information—Under no circumstances should you provide a Social Security number, banking details, or passwords to an unverified employer.

Microsoft is also a member of the Global Anti-Scam Alliance (GASA), which aims to bring governments, law enforcement, consumer protection organizations, financial authorities and providers, brand protection agencies, social media, internet service providers, and cybersecurity companies together to share knowledge and protect consumers from getting scammed.

Recommendations

Remote Help: Microsoft recommends using Remote Help instead of Quick Assist for internal tech support. Remote Help is designed for internal use within an organization and incorporates several features designed to enhance security and minimize the risk of tech support hacks. It is engineered to be used only within an organization’s tenant, providing a safer alternative to Quick Assist.
Digital Fingerprinting: This identifies malicious behaviors and ties them back to specific individuals. This helps in monitoring and preventing unauthorized access.
Blocking full control requests: Quick Assist now includes warnings and requires users to check a box acknowledging the security implications of sharing their screen. This adds a layer of helpful “security friction” by prompting users who may be multitasking or preoccupied to pause to complete an authorization step.

Kelly Bissell: A cybersecurity pioneer combating fraud in the new era of AI

Kelly Bissell’s journey into cybersecurity began unexpectedly in 1990. Initially working in computer science, Kelly was involved in building software for healthcare patient accounting and operating systems at Medaphis and Bellsouth, now AT&T.

His interest in cybersecurity was sparked when he noticed someone logged into a phone switch attempting to get free long-distance calls and traced the intruder back to Romania. This incident marked the beginning of Kelly’s career in cybersecurity.

“I stayed in cybersecurity hunting for bad actors, integrating security controls for hundreds of companies, and helping shape the NIST security frameworks and regulations such as FFIEC, PCI, NERC-CIP,” he explains.

Currently, Kelly is Corporate Vice President of Anti-Fraud and Product Abuse within Microsoft Security. Microsoft’s fraud team employs machine learning and AI to build better detection code and understand fraud operations. They use AI-powered solutions to detect and prevent cyberthreats, leveraging advanced fraud detection frameworks that continuously learn and evolve.

“Cybercrime is a trillion-dollar problem, and it’s been going up every year for the past 30 years. I think we have an opportunity today to adopt AI faster so we can detect and close the gap of exposure quickly. Now we have AI that can make a difference at scale and help us build security and fraud protections into our products much faster.”

Previously Kelly managed the Microsoft Detection and Response Team (DART) and created the Global Hunting, Oversight, and Strategic Triage (GHOST) team that detected and responded to attackers such as Storm-0558 and Midnight Blizzard.

Prior to Microsoft, during his time at Accenture and Deloitte, Kelly collaborated with companies and worked extensively with government agencies like the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) and the Federal Bureau of Investigation, where he helped build security systems inside their operations.

His time as Chief Information Security Officer (CISO) at a bank exposed him to addressing both cybersecurity and fraud, leading to his involvement in shaping regulatory guidelines to protect banks and eventually Microsoft.

Kelly has also played a significant role in shaping regulations around the National Institute of Standards and Technology (NIST) and Payment Card Industry (PCI) compliance, which helps ensure the security of businesses’ credit card transactions, among others.

Internationally, Kelly played a crucial role in helping establish agencies and improve cybersecurity measures. As a consultant in London, he helped stand up the United Kingdom’s National Cyber Security Centre (NCSC), which is part of the Government Communications Headquarters (GCHQ), the equivalent of CISA. Kelly’s efforts in content moderation with several social media companies, including YouTube, were instrumental in removing harmful content.

That’s why he’s excited about Microsoft’s partnership with GASA. GASA brings together governments, law enforcement, consumer protection organizations, financial authorities, internet service providers, cybersecurity companies, and others to share knowledge and define joint actions to protect consumers from getting scammed.

“If I protect Microsoft, that’s good, but it’s not sufficient. In the same way, if Apple does their thing, and Google does their thing, but if we’re not working together, we’ve all missed the bigger opportunity. We must share cybercrime information with each other and educate the public. If we can have a three-pronged approach of tech companies building security and fraud protection into their products, public awareness, and sharing cybercrime and fraudster information with law enforcement, I think we can make a big difference,” he says.

Next steps with Microsoft Security

To learn more about Microsoft Security solutions, visit our website. Bookmark the Security blog to keep up with our expert coverage on security matters. Also, follow us on LinkedIn (Microsoft Security) and X (@MSFTSecurity) for the latest news and updates on cybersecurity.

Methodology: Microsoft platforms and services, including Azure, Microsoft Defender for Office, Microsoft Threat Intelligence, and Microsoft Digital Crimes Unit (DCU), provided anonymized data on threat actor activity and trends. Additionally, Microsoft Entra ID provided anonymized data on threat activity, such as malicious email accounts, phishing emails, and attacker movement within networks. Additional insights are from the daily security signals gained across Microsoft, including the cloud, endpoints, the intelligent edge, and telemetry from Microsoft platforms and services. The $4 billion figure represents an aggregated total of fraud and scam attempts against Microsoft and our customers in consumer and enterprise segments (in 12 months).

MIL OSI Economics –

April 17, 2025

MIL-OSI Security: Fentanyl Distributor Gets 13 Years in Prison

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

GALVESTON, Texas – A 46-year-old Texas City resident has been ordered to federal prison for possession with intent to distribute fentanyl, announced U.S. Attorney Nicholas J. Ganjei.

John Earl Edwards pleaded guilty Sept. 24, 2024.

U.S. District Judge Jeffrey V. Brown has now ordered Edwards to serve 156 months to be immediately followed by three years of supervised release.

“Taking fentanyl off the street is good, but taking a fentanyl dealer off the street is even better,” said Ganjei. “This is one less person who makes their living off of the misery of their fellow citizens.”

On July 22, 2021, Edwards negotiated the sale of a small amount of fentanyl and arranged to have it delivered on July 22, 2021.

The investigation revealed Edwards’ drug distribution also included cocaine, cocaine base and methamphetamine.

He was permitted to remain on bond and voluntarily surrender to a Federal Bureau of Prisons facility to be determined in the near future.

The FBI’s Safe Streets and Violent Crimes Task Force and the La Marque Police Department conducted the investigation. Assistant U.S. Attorney Kenneth A. Cusick prosecuted the case.

MIL Security OSI –

April 17, 2025

MIL-OSI: Farmers & Merchants Bancorp (FMCB) Reports Increase in First Quarter 2025 Earnings Over Prior Year

Source: GlobeNewswire (MIL-OSI)

First Quarter 2025 Highlights

Net income of $23.0 million, or basic earnings per share of $32.88 and diluted earnings per share of $32.86; diluted earnings per share up 9.9% compared to the fourth quarter of 2024 and up 7.6% compared to the first quarter of 2024;
Basic earnings per share of $123.34 over the trailing twelve months versus $116.37 over the same trailing period a year ago and $105.65 for the same period two years ago;
Tangible book value per share increased 13.49% to $843.33 compared to $743.08 as of March 31, 2024;
Achieved return on average assets of 1.70% and return on average equity of 15.65%;
Net interest income of $53.1 million up $0.95 million compared to in the fourth quarter of 2024; net interest margin (tax equivalent basis) of 4.20%, up from 4.09% in the fourth quarter of 2024;
Strong liquidity position continues with $607.3 million in cash, $1.3 billion in investment securities of which $495.4 million are available-for-sale and a borrowing capacity of $2.1 billion as of March 31, 2025;
Continue to grow our solid capital position with a total risk-based capital ratio of 15.23%, common equity tier 1 ratio of 13.75%, tier 1 leverage ratio of 11.32% and a tangible common equity ratio of 10.40%;
Credit quality remains strong with a total allowance for credit losses of 2.17%; net charge-offs for the quarter of $160,000 and non-accrual loans or leases at quarter-end of $193,000.

LODI, Calif., April 16, 2025 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp (OTCQX: FMCB) (the “Company” or “FMCB”), the parent company of Farmers & Merchants Bank of Central California (the “Bank” or “F&M Bank”), reported net income of $23.0 million, or $32.86 per diluted common share for the first quarter of 2025 compared with $22.7 million, or $30.56 per diluted common share, for the first quarter of 2024 and $21.8 million, or $29.89 per diluted common share for the fourth quarter of 2024. Annualized return on average assets was 1.70% and return on average equity was 15.65% for the first quarter of 2025 compared with 1.71% and 16.33% for the first quarter of 2024 and 1.62% and 15.30% for the fourth quarter of 2024. The expense efficiency ratio for first quarter was 43.86% down from 44.94% for the first quarter of 2024 and 46.57% for the fourth quarter of 2024.

Net income over the trailing twelve months was $88.7 million compared with $87.5 million for the same trailing period a year earlier. Diluted earnings per share over the trailing twelve months totaled $123.32, up 5.97% compared with $116.37 for the same trailing period a year ago and $105.65 for the same period two years ago. Basic earnings per share over the trailing twelve months totaled $123.34, up 5.99% compared with $116.37 for the same trailing period a year ago and $105.65 for the same period two years ago.

CEO Commentary

Kent Steinwert, Farmers & Merchants Bancorp’s Chairman, President and Chief Executive Officer, stated, “We are very pleased with the Company’s financial performance in the first quarter of 2025 highlighted by net income of $23.0 million and a return on average assets of 1.70% and return on average equity of 15.65%. After seven consecutive years of record-setting annual earnings, we begin 2025 with another high-performing first quarter. We achieved these impressive results while continuing to maintain a strong liquidity position and balance sheet at quarter end with $607.3 million in cash, $1.3 billion in investment securities of which $495.4 million are available-for-sale and access to $2.1 billion in borrowing capacity. Capital levels continue to strengthen and are significantly above the regulatory thresholds for “well-capitalized” banks. Core deposits increased $28.8 million in the first quarter from December 31, 2024 as we continued our focus on growing deposits with both our longstanding established client relationships while developing new client relationships. Gross loans and leases were $3.6 billion at the end of the first quarter, down 2.56% from December 31, 2024 due in part to some seasonality in agricultural lending and due to our continued conservative approach in underwriting given the inverted yield curve which continues to not price in duration risk for loans and leases beyond three years. Credit quality remains solid and we continue to work closely with our borrowers as they work through the current economic cycle, particularly in a few agricultural products adversely impacted by negative conditions in the export market. However, the recent tariffs coupled with the weakened US dollar may improve export market opportunities for these products and may provide financial relief to affected customers. Our Company remains in excellent financial condition and is well positioned to navigate the challenges ahead as we have for the past 109 years.”

Earnings

Net interest income for the quarter ended March 31, 2025 was $53.1 million compared with $51.7 million in the same quarter in 2024 and $52.2 million in the fourth quarter of 2024. The Company’s net interest margin increased to 4.20% in the first quarter of 2025 compared with 4.09% in the fourth quarter of 2024 as the combination of a decrease in deposit costs and pricing discipline on loans and leases, which has helped maintain loan and lease yields, has collectively resulted in an increase in the net interest margin. Tangible book value per share increased to $843.33 at March 31, 2025, up 13.49% compared with $743.08 a year ago.

Balance Sheet

Total assets at quarter-end were $5.7 billion up from $5.4 billion as of December 31, 2024. Total cash and cash equivalents were $607.3 million, an increase of $394.7 million from December 31, 2024. Total loans and leases outstanding were $3.6 billion, a decrease of $94.7 million or 2.57% from December 31, 2024 and a decrease of $110.9 million or 2.99% from March 31, 2024. As of March 31, 2025 our total investment securities portfolio was $1.3 billion, an increase of $21.3 million from December 31, 2024 and an increase of $208.4 million from March 31, 2024. The portfolio is comprised of $495.4 million in available-for-sale securities and $759.8 million in held-to-maturity securities. Total deposits increased $278.8 million, or 5.93% to $5.0 billion at March 31, 2025 compared to December 31, 2024 due primarily to brokered deposits of $250.0 million. Excluding brokered deposits, total deposits increased by $28.8 million or 0.61% compared to December 31, 2024 due to an increase in savings and money market accounts. Our loan to deposit ratio was 72.23% as of March 31, 2025 down from 78.53% as of December 31, 2024 due to an increase in total deposits and a modest decrease in total loans and leases.

Credit Quality

The Company’s credit quality remained solid with only $193,000 in non-accrual loans and leases as of March 31, 2025 and a negligible delinquency ratio of 0.01% of total loans and leases. Net charge-offs were $160,000 in the first quarter of 2025 compared to $533,000 in the fourth quarter of 2024. Net charge-offs over the trailing twelve months were $895,000 or 0.02% of average total loans and leases. The total allowance for credit losses on loans and leases and unfunded commitments was $78.1 million as of March 31, 2025 compared to $78.0 million as of December 31, 2024. The allowance for credit losses on loans and leases increased by $0.1 million to $75.4 million, or 2.10% as of March 31, 2025 compared with $75.3 million or 2.04% as of December 31, 2024. A provision of $300,000 was recorded during the first quarter of 2025 compared to no provision during the first and fourth quarters of 2024.

Capital

The Company’s and Bank’s regulatory capital ratios continued to strengthen during the first quarter of 2025. At March 31, 2025, the Company’s preliminary total risk-based capital ratio was 15.23%, the common equity tier 1 capital ratio was 13.75% and the tier 1 leverage capital ratio was 11.32% an increase from 14.52%, 13.04% and 10.95% as of December 31, 2024, respectively. At March 31, 2025, all F&M Bank capital ratios exceeded the regulatory requirements to be classified as “well-capitalized”. At March 31, 2025, the tangible common equity ratio was 10.40%, up from 9.68% as of March 31, 2024.

About Farmers & Merchants Bancorp

Farmers & Merchants Bancorp, trades on the OTCQX under the symbol FMCB, and is the parent company of Farmers & Merchants Bank of Central California, also known as F&M Bank. Founded in 1916, F&M Bank is a locally owned and operated community bank, which proudly serves California through 33 convenient locations. F&M Bank is financially strong, with $5.7 billion in assets, and is consistently recognized as one of the nation’s safest banks by national bank rating firms. The Bank has maintained a 5-Star rating from BauerFinancial for 35 consecutive years, longer than any other commercial bank in the State of California.

Farmers & Merchants Bancorp has paid dividends for 89 consecutive years and has increased dividends for 59 consecutive years. As a result, Farmers & Merchants Bancorp is a member of a select group of only 51 publicly traded companies referred to as “Dividend Kings,” and is ranked 14^th in that group based on consecutive years of dividend increases. A “Dividend King” is a stock with 50 or more consecutive years of dividend increase.

In August 2024, Farmers & Merchants Bancorp was named by Bank Director’s Magazine as the #2 best performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2023. Last year the Bank was named by Bank Director’s Magazine as the #1 best performing bank in the nation across all asset categories in their annual “Ranking Banking” study of the top performing banks for 2022.

In April 2024, F&M Bank was ranked 6^th on Forbes Magazine’s list of “America’s Best Banks” in 2023. Forbes’ annual “America’s Best Banks” list looks at ten metrics measuring growth, credit quality, profitability, and capital for the 2023 calendar year, as well as stock performance in the 12 months through March 18, 2024.

In December 2023, F&M Bank was ranked 4^th on S&P Global Market Intelligence’s “Top 50 List of Best-Performing Community Banks” in the US with assets between $3.0 billion and $10.0 billion for 2023. S&P Global Market Intelligence ranks financial institutions based on several key factors including financial returns, growth, and balance sheet risk profile.

In October 2021, F&M Bank was named the “Best Community Bank in California” by Newsweek magazine. Newsweek’s ranking recognizes those financial institutions that best serve their customers’ needs in each state. This recognition speaks to the superior customer service the F&M Bank team members provide to its clients.

F&M Bank is the 16^th largest bank lender to agriculture in the United States. F&M Bank operates in the mid-Central Valley of California, including Sacramento, San Joaquin, Solano, Stanislaus, and Merced counties and the east region of the San Francisco Bay Area, including Napa, Alameda and Contra Costa counties.

F&M Bank was inducted into the National Agriculture Science Center’s “Ag Hall of Fame” at the end of 2021 for providing resources, financial advice, guidance, and support to the agribusiness communities as well as to students in the next generation of agribusiness workforce. F&M Bank is dedicated to helping California remain the premier agricultural region in the world and will continue to work with the next generation of farmers, ranchers, and processors. F&M Bank remains committed to servicing the needs of agribusiness in California as has been the case since its founding over 109 years ago.

F&M Bank offers a full complement of loan, deposit, equipment leasing and treasury management products to businesses, as well as a full suite of consumer banking products. The FDIC awarded F&M Bank the highest possible rating of “Outstanding” in their last Community Reinvestment Act (“CRA”) evaluation.

Forward-Looking Statements

This press release may contain certain forward-looking statements that are based on management’s current expectations regarding the Company’s financial performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “intend,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Forward-looking statements in this press release include, without limitation, statements regarding loan and deposit production levels of net interest margin, the ability to control costs and expenses, the competitive environment, financial and regulatory policies of the United States government, general economic conditions, inflation, recessions, tariffs, economic uncertainty in the United States, and changes in interest rates. Forward-looking statements in this earnings release include matters that involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from results expressed or implied by such forward-looking statements. Such risk factors include, among others: the effects of and changes in monetary and fiscal policies, including the interest rate policies of the Federal Reserve Board and their effects on inflation risk; political and economic uncertainty, including any decline in global, domestic or local economic conditions or the stability of credit and financial markets; and other relevant risks detailed in the Company’s Form 10-K, Form 10-Qs, and various other securities law filings made periodically by the Company, copies of which are available from the Company’s website. All such factors are difficult to predict and are beyond the Company’s ability to control or predict. There also may be additional risks that the Company does not presently know, or that the Company currently believes to be immaterial, that could also cause actual results to differ materially and adversely from those contained in these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or circumstances after the date of this press release or otherwise, except as may be required by applicable law.

For more information about Farmers & Merchants Bancorp and F&M Bank, visit fmbonline.com.

Investor Relations Contact
Farmers & Merchants Bancorp
Bart R. Olson
Executive Vice President and Chief Financial Officer

Phone: 209-367-2485
bolson@fmbonline.com

FINANCIAL HIGHLIGHTS

Three Months Ended

(dollars in thousands, except per share amounts)

March 31, 2025

December 31, 2024

March 31, 2024

Earnings and Profitability:

Interest income

$

67,138

$

66,870

$

66,641

Interest expense

13,997

14,681

14,928

Net interest income

53,141

52,189

51,713

Provision for credit losses

300

–

Noninterest income

5,021

4,578

5,075

Noninterest expense

25,509

26,434

25,521

Income before taxes

32,353

30,333

31,267

Income tax expense

9,344

8,487

8,544

Net income

$

23,009

$

21,846

$

22,723

Basic earnings per share

$

32.88

$

29.89

$

30.56

Diluted earnings per share

$

32.86

$

29.89

$

30.56

Return on average assets

1.70%

1.62%

1.71%

Return on average equity

15.65%

15.30%

16.33%

Loan yield

6.07%

6.08%

6.09%

Cost of average total deposits

1.17%

1.23%

1.27%

Net interest margin – tax equivalent

4.20%

4.09%

4.14%

Effective tax rate

28.88%

27.98%

27.33%

Efficiency ratio

43.86%

46.57%

44.94%

Book value per share

$

861.55

$

818.91

$

760.96

Tangible book value per share

$

843.33

$

800.52

$

743.08

Balance Sheet:

Total assets

$

5,680,024

$

5,370,196

$

5,714,573

Cash and cash equivalents

607,254

212,563

738,397

of which held at Fed

515,758

141,505

672,601

Total investment securities

1,255,204

1,233,857

1,046,827

of which available-for-sale

495,433

464,414

239,856

of which held-to-maturity

759,771

769,443

806,971

Gross loans and leases

3,595,511

3,690,221

3,706,437

Allowance for credit losses – loans and leases

75,423

75,283

75,018

Total deposits

4,977,968

4,699,139

4,959,589

Borrowings

–

100,000

Subordinated debentures

10,310

Total shareholders’ equity

$

602,306

$

573,072

$

565,217

Loan-to-deposit ratio

72.23%

78.53%

74.73%

Percentage of checking deposits to total deposits

45.76%

51.08%

49.39%

Capital ratios (Bancorp) ⁽¹⁾

Common equity tier 1 capital to risk-weighted assets

13.75%

13.04%

12.73%

Tier 1 capital to risk-weighted assets

13.97%

13.26%

12.95%

Risk-based capital to risk-weighted assets

15.23%

14.52%

14.21%

Tier 1 leverage capital ratio

11.32%

10.95%

10.83%

Tangible common equity ratio ⁽²⁾

10.40%

10.46%

9.68%

(1) Capital information is preliminary for March 31, 2025

(2) Non-GAAP measurement

Non-GAAP measurement reconciliation:

(Dollars in thousands)

March 31, 2025

December 31, 2024

March 31, 2024

Shareholders’ equity

$

602,306

$

573,072

$

565,217

Less: Intangible assets

12,740

12,870

13,282

Tangible common equity

$

589,566

$

560,202

$

551,935

Total assets

$

5,680,024

$

5,370,196

$

5,714,573

Less: Intangible assets

12,740

12,870

13,282

Tangible assets

$

5,667,284

$

5,357,326

$

5,701,291

Tangible common equity ratio ⁽¹⁾

10.40%

10.46%

9.68%

(1) Tangible common equity divided by tangible assets

The MIL Network –

April 17, 2025

MIL-OSI USA: Private Investigator Sentenced to Prison for Interstate Stalking and Harassment of Chinese Nationals on Behalf of the People’s Republic of China

Source: US State of North Dakota

Michael McMahon, a Retired New York City Police Department (NYPD) Sergeant, and Two Co-Conspirators Were First Defendants Convicted After a U.S. Trial in Connection with Repatriation Program ‘Operation Fox Hunt’

Today, in federal court in Brooklyn, New York, Michael McMahon, 57, of Mahwah, New Jersey, was sentenced to 18 months in prison and ordered to pay an $11,000 fine for acting as an illegal agent of the government of the People’s Republic of China (PRC) and interstate stalking and conspiracy to commit the same, for his participation in a scheme to coerce repatriation of a U.S. resident to the PRC as part of its international repatriation effort known as “Operation Fox Hunt.” McMahon and co-defendants Zhu Yong, 68, of East Elmhurst, New York, and Congying Zheng, 29, of Brooklyn, were convicted by a federal jury in June 2023 following a three-week trial. In January 2025, Zhu and Zheng were sentenced respectively to 24 months and 16 months in prison.

As proven at trial, between approximately 2016 and 2019, the defendants and their co-conspirators participated in an international campaign to threaten, harass, surveil, and intimidate John Doe #1 and his family in order to force him and his wife, Jane Doe #1, to return to the PRC to face purported corruption charges. Beginning in 2012, John Doe #1 and Jane Doe #1 had been targeted for repatriation as part of the PRC’s transnational repression programs known as “Operation Fox Hunt” and “Operation Sky Net.” John Doe #1 and his family had accordingly sought to keep their address out of public records.

Zhu hired McMahon, a retired NYPD sergeant working as a private investigator, to locate John Doe #1. McMahon obtained sensitive information about John Doe #1, which he then reported back to Zhu and others, including a PRC police officer. McMahon also conducted surveillance outside the New Jersey home of John Doe #1’s relative and provided Zhu and PRC officials with detailed reports of what he observed. The operation was supervised and directed by several PRC officials, including a PRC police officer and a PRC prosecutor.

As McMahon knew, the operation was intended not only to locate John Doe #1, but to coerce him to return to the PRC by exerting pressure on his family members. In April 2017, PRC officials threatened to jail John Doe #1’s sister, who lived in the PRC, in order to coerce John Doe #1’s then-82-year-old father to travel from the PRC to their relative’s home in New Jersey. John Doe #1’s father, who had recently suffered a brain hemorrhage, was so frail that a doctor accompanied him for the trip. McMahon followed John Doe #1’s father from the relative’s New Jersey home, and, by doing so, was able to learn John Doe #1’s address. McMahon immediately provided this information to a PRC operative.

On Sept. 4, 2018, Zheng and another co-conspirator drove to the New Jersey residence of John Doe #1 and Jane Doe #1 – at the address that McMahon had provided – where they pounded on the front door, attempted to enter the house, and then peered through the windows in the back of the home. They left a note on the front door informing John Doe #1 that his “wife and children will be okay” if John Doe #1 surrendered himself to face a ten-year prison term in the PRC.

McMahon knew that the subjects of his investigation were wanted by the PRC government, a fact that he texted about with another investigator he contracted to help him. Following his arrest, McMahon acknowledged knowing that his employers wanted to get the victim back to China “so they could prosecute him.” After providing the victims’ address, McMahon told his surveillance partner that he was “waiting for a call” to find out what to do next. McMahon’s partner responded, “Yeah. From NJ State Police about an abduction,” to which McMahon responded “Lol.” McMahon later suggested to a PRC co-conspirator that they “harass” John Doe #1 by “[p]ark[ing] outside his home and let[ting] him know we are there.” McMahon took other investigative steps designed to harass the victims, such as researching their daughter’s university residence and college major. McMahon was paid more than $19,000 in total for his role in the illegal repatriation scheme. In an apparent attempt to conceal the source, McMahon deposited payments from his PRC clients into his son’s bank account, the only time he had done so with client payments.

Previously, three co-defendants pleaded guilty in connection with their roles in the PRC-directed harassment and intimidation campaign. They are awaiting sentencing.

Sue J. Bai, head of the Justice Department’s National Security Division, U.S. Attorney John J. Durham for the Eastern District of New York, and Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence Division made the announcement.

The FBI New York Field Office investigated the case, with valuable assistance provided by the Department of State’s Diplomatic Security Service.

Assistant U.S. Attorneys Meredith A. Arfa and Irisa Chen for the Eastern District of New York and Trial Attorney Christine A. Bonomo of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. Paralegal Specialist Rebecca Roth for the Eastern District of New York provided valuable assistance.

The FBI has created a website for victims to report efforts by foreign governments to stalk, intimidate, or assault people in the United States. If you believe that you are or have been a victim of transnational repression, please visit the FBI’s website.

MIL OSI USA News –

April 17, 2025

MIL-OSI USA: Former FAA Contractor Pleads Guilty to Illegally Acting as an Agent of the Iranian Government

Source: US State of North Dakota

Former Federal Aviation Administration (FAA) contractor Abouzar Rahmati, 42, a naturalized U.S. citizen and resident of Great Falls, Virginia, pleaded guilty today to conspiring to act and acting as an agent of the Iranian government in the United States without prior notification to the Attorney General.

According to court documents, from at least December 2017 through June 2024, Rahmati worked with Iranian government officials and intelligence operatives to act on their behalf in the United States, including by meeting with Iranian intelligence officers in Iran, communicating with Iranian intelligence officers and government officials using a cover story to hide his conduct, obtaining employment with an FAA contractor with access to sensitive non-public information about the U.S. aviation sector, and obtaining open-source and non-public materials about the U.S. solar energy industry and providing it to Iranian intelligence officers.

In August 2017, Rahmati offered his services to the Iranian government through a senior Iranian government official who previously worked in Iran’s Ministry of Intelligence and Security and with whom Rahmati had previously attended university. Four months later, in December 2017, Rahmati traveled to Iran, where he met with Iranian intelligence operatives and government officials and agreed to obtain information about the U.S. solar energy industry, to provide that information to Iranian officials, and to conduct future communications under a cover story based on purported discussions about research with fellow academics.

Upon returning to the United States in early 2018, Rahmati obtained various private and open-source materials related to the U.S. solar energy industry and provided them to an official from the office of Iran’s Vice President for Science and Technology in response to tasking from Iranian government officials.

In response to tasking from Iranian officials, and in furtherance of his role as an agent of the Government of Iran, Rahmati exploited his employment as an FAA contractor, working for U.S. COMPANY 1, by downloading at least 172 GB of U.S. COMPANY 1 files, which included sensitive access-controlled FAA documents related to the National Aerospace System (NAS), NAS Airport Surveillance Radar systems, and radio frequency data. Rahmati stored those files on removable media, which he took to Iran, where he provided sensitive documents to the Government of Iran in April 2022.

Also in April 2022, in response to tasking from Iranian government officials, Rahmati sent additional information relating to solar energy, solar panels, the FAA, U.S. airports, and U.S. air traffic control towers to his brother, who lived in Iran, so that he would provide those files to Iranian intelligence on Rahmati’s behalf.

Sentencing is scheduled for Aug. 26. Rahmati faces a maximum statutory penalty of 10 years in prison for acting as an agent of a foreign government without prior notification to the Attorney General, and up to five years in prison for conspiracy. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Sue Bai, head of the Justice Department’s National Security Division, U.S. Attorney Edward R. Martin Jr. for the District of Columbia, and Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence Division made the announcement.

The FBI’s Washington Field Office is investigating the case, with significant assistance from the FAA’s Office of Counterintelligence and Technical Operations.

Assistant U.S. Attorneys Christopher Tortorice and Kimberly Paschall for the District of Columbia and Trial Attorneys Beau Barnes and Alexander Wharton of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case, with significant assistance from the U.S. Attorney’s Office for the Eastern District of Virginia.

MIL OSI USA News –

April 17, 2025

MIL-OSI Security: Former FAA Contractor Pleads Guilty to Illegally Acting as an Agent of the Iranian Government

Source: United States Attorneys General 4