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Category: Intelligence Agencies

  • MIL-OSI USA: Statement from the Department of Energy on Nomination of David Eisner

    Source: US Department of Energy

    The Department of Energy (DOE) today released the following statement from DOE Chief of Staff Carl Coe on the President’s nomination of David Eisner to serve as the Assistant Secretary of International Affairs

    Energy.gov

    July 25, 2025

     min minute read time

    WASHINGTON— The Department of Energy (DOE) today released the following statement from DOE Chief of Staff Carl Coe on the President’s nomination of David Eisner to serve as the Assistant Secretary of International Affairs:

    “After careful consideration, David Eisner has made the decision to withdraw his nomination as the Department of Energy’s Assistant Secretary of International Affairs. Eisner is a thoroughly qualified nominee with decades of experience working at the highest levels of the private and public sector. While we are disappointed that he will not be serving alongside the talented staff in DOE’s Office of International Affairs, we thank him for his service to the U.S. government and wish him the best in all future opportunities.”
     

                                                                                                            ###

    Demolition of former NNSA Albuquerque Complex Eliminates Over $11 Million in Deferred Maintenance

    July 25, 2025

    MIL OSI USA News –

    July 26, 2025
  • MIL-OSI Security: Southern District of Texas charges 204 this week alone in relation to border enforcement efforts

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

    HOUSTON – A total of 201 new cases have been filed related to immigration and border security from July 18-24, announced U.S. Attorney Nicholas J. Ganjei.

    Among those are 87 people who face charges of illegally reentering the country. The majority have prior felony convictions for narcotics, violent crime, prior immigration crimes and more. A total of 98 people are charged with illegally entering the country, while 11 cases allege various instances of human smuggling with the remainder involving other immigration crimes and assault of officers.

    Some of those facing new criminal charges are five Mexican nationals, all of whom have previous felony convictions, according to their charges. One is Cristian Jesus Rodriguez-Cuarenta who allegedly has a prior conviction for conspiracy to transport an illegal alien and had just been removed in January. Four others – Juan Manuel Perez-Tamez, Ramiro Rodriguez-Esquivel, Jose Martinez-Lemus and Hector Esael Gonzalez-Garcia – are also alleged to be convicted felons of crimes including drug trafficking, multiple driving while intoxicated instances or illegal reentry. Despite their previous removals on varying dates between 2019 – 2022, authorities allegedly discovered all five men in the Edinburg area without any authorization to be in the United States. They face up to 20 years in federal prison, if convicted.

    Also in the McAllen area this week, a suspicious vehicle led to the arrest of three, two of whom are Mexican nationals, and the discovery of nearly three dozen illegal aliens. They are now charged with human smuggling after authorities discovered 24 illegal aliens hidden in a tractor trailer at a Border Patrol (BP) checkpoint, which included defendant Elbis Lisandro Moreno Uruqia. Joe Michael Cruz and Uruqia allegedly transported the aliens from Mission to Hebbronville. According to the charges, Uruqia and Cruz smuggled 18 aliens two weeks earlier. A related search at a Mission residence led to the arrest of Jesus Felipe Hernandez Rangel and the discovery of 10 additional illegal aliens, according to the complaint. If convicted, each faces up to 10 years in federal prison.

    In addition to the new cases, Laredo resident Juan Francisco Reyna was ordered to federal prison. He led a multi-year human smuggling operation that used social media, inclement weather and the Covid-19 pandemic to transport over 100 illegal aliens, including minors, across the United States. Reyna coordinated the scheme through Facebook, paid drivers to monitor checkpoints and scheduled crossings during storms to avoid detection. Authorities linked him to stash houses in Laredo and San Antonio where they seized over $56,000 in U.S. currency and ammunition. He received a sentence of 63 months.

    “Over the past six months, the Department of Justice has made securing our national border the number one priority, and the Southern District is putting that promise into action,” said Ganjei. “Human smugglers may have had an easy time over the past few years, but those days are over. If you engage in these crimes, if you break our nation’s immigration laws, you will be caught and you will be punished. Simple as that.”

    An armed cartel carjacker was also sentenced this week. Mexican national Johnathan Mata-Espinoza received 108 months for two counts of armed carjacking. On July 27, 2023, he threatened two adults and a child, stealing their vehicle after they refused to give him a ride to the bus station, saying, “You better take me because if not, I will kill you all.” Authorities later linked him to a second armed encounter that same night, during which he threatened another victim and displayed a concealed firearm.

    In Corpus Christi, a 40-year-old Mexican national illegally living in Houston pleaded guilty to leading a human smuggling organization and unlawfully reentering the United States. Edgar-Ruiz-Briones coordinated transportation of illegal aliens crossing the southern border, recruited drivers from as far as Kansas and managing over 100 smuggling trips into the United States over an 18-month period. He handled payments from aliens and paid drivers to move them from stash houses to destinations across the country. Ruiz-Briones, who had previously been removed multiple times, now faces up to 30 years in federal prison.

    Jose Pascual Soliz received a sentence of 240 months in federal prison after admitting to recruiting Clara Miranda Aleman and others as well as coordinating the transportation of methamphetamine hidden in a vehicle’s gas tank. Aleman helped smuggle the drugs into the United States as part of a Laredo-based trafficking operation tied to Cartel De Noreste. Authorities seized more than 11.85 kilograms of methamphetamine from the pair, noting it was part of a larger shipment. The court also found Soliz had multiple felony convictions, including one for narcotics trafficking. Aleman previously received a 41-month sentence.

    A Corpus Christi jury also convicted a former Texas National Guard soldier of smuggling illegal aliens. Mario Sandoval coordinated smuggling trips in the Rio Grande Valley and sent text messages to a co-conspirator about law enforcement activity. The defense attempted to convince the jury no conspiracy existed, and his text messages were out of context. The jury did not believe those claims and found him guilty. He faces up to 10 years in federal prison.

    In Houston, a 32-year-old Mexican national was ordered to serve 42 months after again illegally reentering the country. Juan Medina-Garcia has felony convictions for possession, aggravated assault and illegal reentry. He also has two prior removals from the United States. In handing down the sentence, the court noted the sentence should serve as a significant deterrence to prevent any future illegal reentries.

    These cases were referred or supported by federal law enforcement partners, including Immigration and Customs Enforcement (ICE) – Homeland Security Investigations, ICE – Enforcement and Removal Operations, BP, Drug Enforcement Administration, FBI, U.S. Marshals Service and Bureau of Alcohol, Tobacco, Firearms and Explosives with additional assistance from state and local law enforcement partners.

    The cases are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

    Under current leadership, public safety and a secure border are the top priorities for this district. Enhanced enforcement both at the border and in the interior of the district have yielded aliens engaged in unlawful activity or with serious criminal history, including human trafficking, sexual assault and violence against children.  

    The U.S. Attorney’s Office for the Southern District of Texas remains one of the busiest in the nation. It represents 43 counties and more than nine million people covering 44,000 square miles. Assistant U.S. Attorneys from all seven divisions including Houston, Galveston, Victoria, Corpus Christi, Brownsville, McAllen and Laredo work directly with our law enforcement partners on the federal, state and local levels to prosecute the suspected offenders of these and other federal crimes. 

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

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI Security: Monmouth County, New Jersey, Man Admits to Armed Bank Robbery

    Source: US FBI

    TRENTON, N.J. – A Monmouth County man admitted to armed bank robbery, U.S. Attorney Alina Habba announced.

    Jeffrey L. Kniffin, 51, of Wall Township, pleaded guilty before U.S. District Judge Zahid N. Quraishi on July 22, 2025, to a one-count Information charging him with armed bank robbery.

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

    On October 23, 2024, Kniffin entered a bank in Wall Township, New Jersey armed with a loaded handgun, approached a bank teller, and demanded cash from the teller. After demanding the money, Kniffin removed the handgun from his pocket and displayed it towards the teller. During his interaction with the teller, Kniffin instructed multiple times, “Don’t do anything stupid.” Kniffin received approximately $27,072 in cash from the teller and then fled the bank. He was apprehended and arrested by law enforcement several minutes later. At the time of his arrest, law enforcement recovered from Kniffin and his immediate surroundings a loaded firearm and more than $25,000 in cash.

    The count of armed bank robbery carries a maximum penalty of 25 years in prison and a fine of up to $250,000. Sentencing is scheduled for November 24, 2025.

    U.S. Attorney Habba credited task force officers with the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the charges. She also thanked the Wall Township Police Department, under the direction of Chief Sean O’Halloran, and the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Raymond S. Santiago, 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.

                                                                                       ###

    Defense counsel: John M. Holliday, Esq.

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI Security: Illinois Man Sentenced to 41 Months in Prison

    Source: US FBI

    HAMMOND – Yesterday, Kareim J. Coverson, 37 years old, of Calumet City, Illinois, was sentenced by United States District Court Judge Phillip P. Simon after pleading guilty to conspiracy to commit bank fraud, announced Acting United States Attorney M. Scott Proctor.

    Coverson was sentenced to 41 months in prison, 2 years of supervised release, and ordered to pay $614,597.50 in restitution to the victims of the offense.

    According to documents in the case, between approximately May 2019 and June 2020, Coverson participated in a scheme to fraudulently obtain over $3.3 million from the proceeds of large business checks stolen out of the mail.  Coverson and his co-conspirators registered fictitious corporations with the Indiana and Illinois Secretaries of State, opened fraudulent corporate bank accounts, and deposited the stolen checks into the fraudulent accounts.  The actions of Coverson and his associates resulted in an unrecovered loss of over $1 million to the affected businesses and financial institutions.

    Coverson is the last of 10 defendants to be convicted and sentenced in this case and a related prosecution arising from the same scheme.   In April 2024, Coverson’s brother, Oliver Coverson, was sentenced to 96 months in prison for his role as the organizer of the scheme.  Earlier this year, Defendant Scott Vue received a prison sentence of 51 months for his role in the offense, which included opening fraudulent bank accounts, depositing stolen checks, and recruiting additional participants to the conspiracy.

    “The Coverson brothers and their associates assembled a large criminal conspiracy that caused millions of dollars of harm to businesses and banks throughout the United States.  These defendants stole from small and large businesses alike, disrupting the flow of commerce, and compromising the mail and financial systems on which everyday Americans rely to conduct their business,” said Proctor.  “As the court’s sentences in this case demonstrate, such conduct is not tolerated in the Northern District of Indiana and will be met with serious consequences.”   

    This case was investigated by the United States Postal Inspection Service, with assistance from the Federal Bureau of Investigation, Federal Deposit Insurance Corporation – Office of Inspector General, and the Lake County Sheriff’s Office.  The case was prosecuted by Assistant United States Attorney Zachary D. Heater.

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI Security: Virginia Man Pleads Guilty to Federal Swatting Charges

    Source: US FBI

    Baltimore, Maryland – Today, Evan Strauss, 27, of Moneta, Virginia, pled guilty to conspiracy, cyberstalking, interstate threatening communications, and threats to damage or destroy by means of fire and explosives. 

    Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty plea with Acting Special Agent in Charge Amanda M. Koldjeski, Federal Bureau of Investigation (FBI) – Baltimore Field Office.

    According to the guilty plea, Strauss helped create and operate an online group known as “Purgatory.”  The group used multiple online social-media platforms, including Telegram and Instagram, to coordinate and plan swatting and doxxing activities and to announce and brag about swats that they conducted.  

    “Swatting” is a term used to describe a criminal incident in which an individual contacts emergency services and falsely reports an emergency, often involving an act of violence that reportedly has or will occur at a particular location to elicit an armed law enforcement response to that location.  “Doxxing” is a term used to describe the practice of — searching for and publishing on the Internet — personal, private, or identifying information about an individual with malicious intent, such as providing the information for the purpose of facilitating the swatting of the individual.

    From December 10, 2023, through January 18, 2024, Strauss and his co-conspirators, including a co-conspirator who resided in Hagerstown, Maryland, and made calls from Maryland, placed swatting calls to police and other emergency response departments. One or more of the conspirators, acting with the intent to threaten, intimidate, and harass individuals and entities, falsely reported emergencies in the form of violent acts at particular locations to cause armed law enforcement responses.

    Strauss and his co-conspirators often used shared scripts to plan and coordinate their conduct. They then called police departments using Voice over Internet Protocol (VOIP) services to obscure their phone numbers and identities.

    As part of the scheme, Strauss called the Newark Delaware Police Department and falsely claimed that he heard a man firing shots in a school hallway. Moments later, the Maryland co-conspirator called the department again, threatening to shoot a specific Newark High School teacher and kill students. As a result of these calls, which occurred in the middle of the school day, authorities placed the school on lockdown as police officers rushed to respond. Later the same day, Strauss and other conspirators bragged about the incident and posted images from the resulting news coverage onto their group’s social media accounts.

    Strauss encouraged a Purgatory conspirator to “shut down” an airport. Following Strauss’ urging, the conspirator used a VOIP number to call the Albany Police Department in Albany, New York, stating he was going to the Albany International Airport to “shoot everybody up” and that his “friend” was going to set off bombs in the airport. Police units then rushed to respond to these threats.

    Additionally, as part of this scheme, the Maryland co-conspirator called the Houston County Sheriff’s Office in Dothan, Alabama, and threatened to burn down part of a residential trailer park and kill any law enforcement officers who arrived to respond to the threat.

    Strauss faces a maximum sentence of 10 years in federal prison for each count of threatening to damage or destroy by fire or explosive and a maximum sentence of five years in federal prison for conspiracy, cyberstalking, and interstate threats.  Co-conspirators Brayden Grace, 19, of Columbus, Ohio, and Owen Jarboe, 19, of Hagerstown, Maryland, pled guilty earlier this year and are awaiting sentencing.

    Actual sentences for federal crimes are typically less than the maximum penalties.  A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing is scheduled for Thursday, November 6, at 10 a.m.

    U.S. Attorney Hayes commended the FBI for its work in the investigation.  Additionally, Ms. Hayes praised the Joint Terrorism Task Force, Columbus; Ohio Police Department; Newark, Delaware Police Department; Lenoir City, Tennessee Police Department; Albany, New York Police Department; Albany County, New York Sheriff’s Office; Fairburn City, Georgia Police Department; Bethel Park, Pennsylvania Police Department; Giles County, Virginia Sheriff’s Office; Blue Springs, Missouri Police Department; Tarboro, North Carolina Police Department; Boston, Massachusetts Police Department; Dodge County, Georgia Sheriff’s Office; Houston County, Alabama Sheriff’s Office; and the FBI’s Mobile, Richmond, Boston, Charlotte, and Cincinnati Field Offices for their valuable assistance. Ms. Hayes also thanked Assistant U.S. Attorneys Robert I. Goldaris and Patricia C. McLane who are prosecuting the case.

    For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit justice.gov/usao-md and justice.gov/usao-md/community-outreach.

    # # #

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI Security: Jury Finds Winner, South Dakota, Man Guilty of Sex Trafficking of Children and Production of Child Pornography

    Source: US FBI

    PIERRE – United States Attorney Alison J. Ramsdell announced today that Richard Alan Kucera, age 67, of Winner, South Dakota, was found guilty of two counts of Sex Trafficking of a Child and two counts of Production of Child Pornography following a four-day federal jury trial in Pierre, South Dakota. The verdict was returned on July 18, 2025.

    Each count of Sex Trafficking of a Child carries a mandatory minimum sentence of 10 years in federal prison, and a maximum sentence of life in federal prison, and/or a $250,000 fine, five years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Each count of Production of Child Pornography carries a mandatory minimum sentence of 15 years in federal prison, and a maximum sentence of 30 years in federal prison, and/or a $250,000 fine, five years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.

    Kucera and co-defendant Ivy Heron, age 37, also of Winner, South Dakota, were indicted by a federal grand jury in August 2023.

    At trial, the evidence established that between 2019 and 2021, Kucera and Heron entered into an agreement to recruit local girls to engage in sexual activity with Kucera in exchange for payment.  Heron received a fee for each girl she recruited whom Kucera selected. Between 2020 and 2021, Heron recruited two sixteen-year-old girls, each of whom Kucera paid to engage in sexual activity.  Kucera also created child pornography images and videos of both minor victims, which he uploaded to Facebook. The arrangement between Kucera and Heron was discovered in June 2022, when the minor victims were interviewed by law enforcement.

    Heron pleaded guilty on April 9, 2025, to Conspiracy to Engage in Sex Trafficking of a Child.  She is in custody awaiting sentencing.

    This case was investigated by the FBI. Assistant U.S. Attorney Kirk Albertson prosecuted the case.   

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

    A presentence investigation was ordered, and a sentencing date has not yet been set. Kucera was remanded to the custody of the U.S. Marshals Service pending sentencing.

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI Security: Federal Jury Convicts a Texas Man of Sexually Assaulting a Female Passenger Onboard a Commercial Airline Flight

    Source: US FBI

    Salt Lake City, Utah – A federal jury in Salt Lake City returned a guilty verdict today against a Texas man after he grabbed and groped a female passenger multiple times without her consent while onboard a late-night flight from Chicago to Salt Lake City.

    Robert Sutherland MacLean, aka “Bobby,” 59, of Frisco, Texas, was charged by indictment on April 18, 2023, with abusive sexual contact in the special aircraft of the United States.

    According to court documents and evidence presented at trial, on March 1, 2022, while in flight, MacLean made calculated and sexually laced statements to a stranger seated next to him while he sexually assaulted her multiple times in the first-class cabin.

    “Mr. MacLean unlawfully and illegally imposed his will upon another person— sexually assaulting her over and over again on that late night flight,” said prosecuting attorney Bryan N. Reeves of the U.S. Attorney’s Office, during the trial.

    MacLean’s sentencing hearing is scheduled for October 1, 2025 at 10:00 a.m. before Senior U.S. District Court Judge Dale A. Kimball at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City. 

    Acting United States Attorney Felice John Viti of the District of Utah made the announcement.

    The case is being investigated by the FBI Salt Lake City Field Office and assisted by the Salt Lake City Police Department.

    Assistant United States Attorneys Michael P. Kennedy and Bryan N. Reeves of the U.S. Attorney’s Office for the District of Utah are prosecuting the case. 
     

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI Security: Laredo, Texas, Man Sentenced to 63 Months for Smuggling Over 100 Illegal Aliens in Locked Trailer

    Source: US FBI

    LAREDO, Texas – A 49-year-old resident of Laredo has been ordered to federal prison for his role in a conspiracy to transport illegal aliens, announced U.S. Attorney Nicholas J. Ganjei.

    Juan Manuel Aguirre pleaded guilty Feb. 6.

    U.S. District Judge Keith P. Ellison has now ordered Aguirre to serve 63 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court considered Aguirre’s history of smuggling aliens on multiple occasions and the danger he posed by transporting them in a sealed, locked, dark and unventilated trailer that required authorities to open with a bolt cutter. 

    “Human smuggling is an incredibly dangerous enterprise, and it requires the trafficker to care absolutely nothing about the lives and safety of those they transport,” said Ganjei. “Fortunately, there were no deaths in this case, but the underlying facts indicate that several of those transported had difficulty breathing and feared for their life. The Southern District of Texas will make sure that all human smugglers pay a serious price for their callousness.”

    On Dec. 2, 2024, law enforcement observed several individuals being loading into a white trailer in a warehouse parking lot. Aguirre was the driver of the truck hauling it. After he departed the location, authorities conducted a traffic stop which resulted in the discovery of 101 aliens locked inside the trailer, 13 of whom were children as young as 13 years old.

    Multiple illegal aliens reported they had difficulty breathing and feared for their life due to the conditions in the trailer. They were from the countries of Mexico, Guatemala, Cuba and Honduras.

    Aguirre will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.

    Immigration and Customs Enforcement – Homeland Security Investigations, FBI, Texas Department of Public Safety and Border Patrol conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of Customs and Border Protection, Drug Enforcement Administration and Webb County Sheriff’s Office. 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 on the Department of Justice’s OCDETF webpage.

    Assistant U.S. Attorney Brandon Scott Bowling is prosecuting the case.

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI Security: Laredo, Texas, Man Sentenced to 63 Months for Smuggling Over 100 Illegal Aliens in Locked Trailer

    Source: US FBI

    LAREDO, Texas – A 49-year-old resident of Laredo has been ordered to federal prison for his role in a conspiracy to transport illegal aliens, announced U.S. Attorney Nicholas J. Ganjei.

    Juan Manuel Aguirre pleaded guilty Feb. 6.

    U.S. District Judge Keith P. Ellison has now ordered Aguirre to serve 63 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court considered Aguirre’s history of smuggling aliens on multiple occasions and the danger he posed by transporting them in a sealed, locked, dark and unventilated trailer that required authorities to open with a bolt cutter. 

    “Human smuggling is an incredibly dangerous enterprise, and it requires the trafficker to care absolutely nothing about the lives and safety of those they transport,” said Ganjei. “Fortunately, there were no deaths in this case, but the underlying facts indicate that several of those transported had difficulty breathing and feared for their life. The Southern District of Texas will make sure that all human smugglers pay a serious price for their callousness.”

    On Dec. 2, 2024, law enforcement observed several individuals being loading into a white trailer in a warehouse parking lot. Aguirre was the driver of the truck hauling it. After he departed the location, authorities conducted a traffic stop which resulted in the discovery of 101 aliens locked inside the trailer, 13 of whom were children as young as 13 years old.

    Multiple illegal aliens reported they had difficulty breathing and feared for their life due to the conditions in the trailer. They were from the countries of Mexico, Guatemala, Cuba and Honduras.

    Aguirre will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.

    Immigration and Customs Enforcement – Homeland Security Investigations, FBI, Texas Department of Public Safety and Border Patrol conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of Customs and Border Protection, Drug Enforcement Administration and Webb County Sheriff’s Office. 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 on the Department of Justice’s OCDETF webpage.

    Assistant U.S. Attorney Brandon Scott Bowling is prosecuting the case.

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI Security: Mexican Mafia and Tango Laredo Gang Members Sentenced to Decades for Prison Assault

    Source: US FBI

    LAREDO, Texas – Four gang members have been sentenced for their roles in an assault at the Rio Grande Detention Center, announced U.S. Attorney Nicholas J. Ganjei.

    Mexican national Jose Regalado-Solis, 47; and Ruben Salazar, 52, Javier Contreras, 48, and Jesus Guadalupe Ortega, 31, all of Laredo, pleaded guilty Aug. 24, 2024, to conspiracy to commit assault resulting in serious bodily injury. Regalado-Solis also pleaded guilty to conspiracy to commit assault with a deadly weapon.

    Senior U.S. District Judge Keith P. Ellison has now ordered Regalado-Solis to serve a total of 144 months in federal prison. Salazar and Contreras each received a 60-month sentence, while Ortega was sentenced to 72 months. At the hearing, the court considered written victim statements as well as in-court testimony from one of the victims. All detailed the extensive injuries and ongoing medical issues resulting from the assault. In handing down the sentence, Judge Ellison noted that he had been on the bench for 26 years called it the “most serious case of prison gang violence I have seen.” He also added that the case justified a maximum sentence, noting the serious nature of the injuries, the unprovoked assault and the gang motivation on the part of the defendants that fueled it.

    “Ensuring that criminals refrain from violent conduct while in custody is just as important as ensuring they refrain from violence outside prison walls,” said Ganjei. “Hopefully the defendants in this case are enjoying their time behind bars, because they just earned themselves many more years in the federal pen.”

    On Aug. 18, 2023, authorities were processing nine new inmates at the facility.

    Ortega approached the newly arrived inmates and asked their gang affiliation. Upon hearing their responses, he ordered them to line up along the back wall of the housing unit. Other inmates then ran back to their bunks and began putting on their shoes. Regalado-Solis obtained a “shank” from his bunk and walked back towards the new inmates. Salazar lined up behind Regalado-Solis, while Javier Contreras stood in a nearby row of bunk beds.

    As the lights went off in the unit, Regalado-Solis and others to assault eight of the new inmates who indicated alternative gang affiliations. He kicked, stomped and made stabbing gestures. While Salazar did not join the initial assault, he was later seen striking and kicking the new inmates on the ground. Contreras immediately rushed into the assault and was observed striking and kicking several as well.

    Authorities were able to quickly disperse the assault, but not before the eight victims sustained significant injuries, including puncture wounds. Two required emergency transportation to Laredo Medical Center.

    One new inmate who did not claim gang membership was unharmed.

    All have been and will remain in custody.

    The FBI and U.S. Marshals Service conducted the investigation with the cooperation of The Geo Group. Assistant U.S. Attorneys Homero Ramirez and Andrew P. Hakala-Finch prosecuted the case.

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI Security: Volleyball Coach Sentenced to 33 Years for Using His Position to Sexually Abuse More Than a Dozen Victims

    Source: US FBI

    MINNEAPOLIS – Dorian Christopher Barrs, 33, was sentenced yesterday to 400 months in prison for production of child pornography, announced Acting U.S. Attorney Joseph H. Thompson.

    “Barrs didn’t just break the law—he shattered the trust placed in him by parents, schools, and the girls he coached and was supposed protect,” said Acting U.S. Attorney Joseph H. Thompson. “This was a deliberated and calculated abuse of power. And it is part of a broader crisis we are facing in Minnesota. Coaches, state troopers, daycare workers, federal agents, and state senators—case after case of people who hold positions of trust and authority preying on children. It is the ultimate betrayal of power and it demands the full force of federal prosecution. To be clear, while I am tired of seeing these cases, this office will not slow down. If you hold a position of trust or authority and harm a child: we will find you, we will expose you, and you will see federal justice.”

    According to court documents, for nearly a decade, Barrs used his position as a volleyball coach to prey on and sexually abuse his players and other victims, as young as 14-years-old.

    Barrs coached volleyball for Maple Grove High School and club volleyball programs and also coached players in private lessons. Barrs used social media to groom, sexually exploit, and abuse young, impressionable, and vulnerable girls for his sexual gratification. Often, Barrs used another minor’s identity to “catfish” his unsuspecting victims, wearing them down or removing their defenses. Barrs sent hundreds of messages to his victims, frequently steering conversations to sexualized topics in a short amount of time. Barrs was a master manipulator. His scheme was simple and horrible. He built relationships with his minor victims with one goal in mind: his sexual gratification. His gratification came in both the production and receipt of sexually explicit images and videos, as well as sexual acts with at least five of the minor victims. Unfortunately, as he took advantage of his position as a volleyball coach—and ultimately these girls—Barrs’s scheme was frighteningly successful. To date, the government has identified at least 19 minor victims who Barrs victimized in his scheme, 14 of whom were being coached by Barrs.

    U.S. District Judge Nancy E. Brasel sentenced the defendant to 400 months—33 years—of imprisonment followed by a lifetime of supervised release. In handing down her sentenced, Judge Brasel said, “This case represents every parent’s nightmare.”  She noted that “The defendant abused a position of trust for both the victims and their families.”  Judge Brasel explained, “Sometimes sports are the only lifeline for a child with a bad situation at home, which is ironic because the defendant knows how important sports were in his own life, so it’s even more unfathomable what he did in this case.”

    “The 33-year prison sentence in this case serves as a stern warning to those who prey upon and sexually exploit children for their own gratification,” said FBI Minneapolis Special Agent in Charge Alvin M. Winston Sr. “Dorian Barrs, a youth volleyball coach, egregiously abused his position of trust for over a decade, coercing vulnerable young girls into sexual activities. The FBI remains steadfast in its commitment to protecting children within our communities. We take great pride in our collaborative efforts with local authorities  throughout this investigation.”

    The U.S. Attorney’s Office commends the bravery of the victims in this case. In 2024, one victim told her parents what was happening and then contacted law enforcement. This was the first step in unraveling Barrs’s crimes. More victims then came forward, which allowed law enforcement and the U.S. Attorney’s Office to piece together the scope of this horrifying scheme and bring Barrs to justice. To the survivors: your courage in coming forward is the reason this predator was held accountable. And your strength protected other girls from ever experiencing Barrs’s abuse.

    This case is the result of an investigation conducted by the Carver County’s Sheriff’s Office and the FBI.

    Assistant U.S. Attorney Evan B. Gilead prosecuted the case. 

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI Security: Jonesboro Man Sentenced to 18 Years in Federal Prison for Conspiracy to Distribute 50 Grams or More of Methamphetamine

    Source: US FBI

          JONESBORO—Thomas Demetrius Williams, a multi-convicted felon, will spend the next 216 months in federal prison for conspiracy to distribute 50 grams or more of methamphetamine. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down on Monday, July 21, 2025, by United States District Judge D. P. Marshall Jr.

          On April 29, 2024, Williams, 41, of Jonesboro, pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine. Judge Marshall also sentenced Williams to five years’ supervised release. Williams was indicted on April 2, 2024, in a second superseding indictment, on two counts of felon in possession of a firearm, two counts of possession with intent to distribute 50 grams or more of methamphetamine (actual), two counts of possession of a firearm in furtherance of drug trafficking, one count of possession with intent to distribute oxycodone, and one count of possession with intent to distribute marijuana.

          On October 12, 2021, law enforcement officers received information that Williams was in possession of a large amount of methamphetamine. An investigation revealed that Williams was on parole with an active search waiver on file. As law enforcement officers approached Williams’ residence he shared with his girlfriend to conduct a parole search, they observed three vehicles in the driveway. While at the residence, law enforcement officers observed the girlfriend and a small child in the grey vehicle in the driveway. The girlfriend stated the vehicle belonged to Williams. At that time, law enforcement officers circled the block and when they arrived back at Williams’ residence, they observed the white vehicle that had previously been in the driveway was no longer there.

          During a parole search of Williams’ residence, law enforcement officers located a debit card in Williams’ name. While awaiting the arrival of a canine officer, Williams was observed driving by his residence in the white vehicle. Not long afterwards, Williams stopped his vehicle and made contact with the law enforcement officers at his residence. Upon arrival of the canine officer, it was deployed to search the area. The canine officer alerted to the presence of narcotics in the grey vehicle. Law enforcement officers searched the grey vehicle and located the bag the girlfriend had been carrying. During a search of the bag, it was revealed to contain 730.4 grams of pure methamphetamine, 299.5 grams of marijuana, 19.7651 grams of ecstasy pills, 4.7289 grams of oxycodone pills, $1,999 in cash, and a stolen Ruger, LCP .380 firearm.

          Williams was sentenced as a Career Offender on the drug conviction due to his criminal history that includes aggravated assault, three domestic battery convictions, a terroristic threatening conviction, three serious drug convictions, drug trafficking convictions, and felon in possession of firearm convictions. There is no parole in the federal system.

          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.

          The investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Erin O’Leary.

    # # #

    Additional information about the office of the

    United States Attorney for the Eastern District of Arkansas, is available online at

    https://www.justice.gov/edar

    X (formerly known as Twitter):

    @USAO_EDAR 

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI Security: Former Madera, California, School Executive Charged with Stealing Federal Funds From Charter School for Disadvantaged K–8th Graders

    Source: US FBI

    On July 17, 2025, a federal grand jury returned a sealed indictment charging Nicholas M. Retana, 67, of Madera, with one count of embezzling money from a program that received federal funding, Acting U.S. Attorney Kimberly A. Sanchez announced.

    On Monday the indictment was unsealed and Retana was arraigned.

    According to court documents, Retana was the founder and executive director of a kindergarten through 8th grade charter school in Madera County until early 2020. As executive director, Retana used school funds on improper personal expenses for himself, his family, and associates. He concealed the misused funds by mislabeling the expenses in school accounting records and misrepresenting the expenses when asked. For example, Retana purchased new Ford F-150 Raptor pickup trucks for his two sons using school funds. He also had a personal relationship with a self-proclaimed sex worker turned relationship coach whom he paid $12,000 using school funds.

    This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Jeffrey A. Spivak and Cody S. Chapple are prosecuting the case.

    If convicted, Retana faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI Security: Former East Bay Financial Advisor Charged with Allegedly Operating Long-Running $9.5 Million Ponzi Scheme

    Source: US FBI

    OAKLAND – A federal grand jury indicted Edwin Emmett Lickiss, Jr., on one count of wire fraud and one count of money laundering in connection with an alleged $9.5 million investment fraud scheme.  

    According to the indictment filed on July 17, 2025, and unsealed today, between 1998 and September 2024, Lickiss, 77, was a financial advisor based in Danville and Alamo, Calif., who owned and operated Foundation Financial Group, a firm that provided investment services to investors in the Northern District of California, Idaho, and throughout the United States.  Lickiss was a registered broker until 2014, when the Financial Industry Regulatory Authority suspended his broker’s license.  Despite the suspension and loss of his broker’s license, Lickiss allegedly continued to solicit and obtain investments from victim investors until around September 2024.  

    The indictment alleges that as part of his scheme, Lickiss falsely represented to investors that he would invest their funds in government bonds and other bonds.  To induce his victims to invest their money with him, Lickiss claimed he had exclusive access to fictitious bonds that paid very high rates of returns, including rates in excess of 20 percent.  Lickiss described the fictitious bonds as safe, secure, and tax-free, and falsely claimed, among other things, that they could be redeemed at any time.  

    In order to convince investors that he had invested their funds as promised, Lickiss allegedly gave fraudulent promissory notes that included the terms of the fake bond investments and purported to track investors’ total investment in the fake bonds.  Lickiss also occasionally made lulling payments to victim investors, falsely describing the payments as interest that had accrued on the nonexistent bonds, when, in fact, the payments were made with funds Lickiss fraudulently obtained from subsequent victim investors.  In addition to making the foregoing misrepresentations, Lickiss allegedly failed to disclose to victim investors that he had been suspended in 2014 from association with any broker-dealer and that he subsequently lost his broker’s license in 2016.

    Instead of investing the funds as promised, Lickiss allegedly used victim investors’ funds to pay earlier investors, in the manner of a Ponzi scheme, and for his personal use, including cash withdrawals, home renovations, travel, and car, mortgage, and personal credit card payments.  In all, Lickiss allegedly obtained at least $9.5 million from no fewer than 50 victim investors.  

    United States Attorney Craig H. Missakian, FBI Special Agent in Charge Sanjay Virmani, and IRS Criminal Investigation (IRS-CI) Oakland Field Office Special Agent in Charge Linda Nguyen made the announcement.

    Lickiss is scheduled to make his initial appearance on July 22, 2025, at 10:30 a.m., before U.S. Magistrate Judge Nathanael Cousins in Courtroom F in San Francisco.

    An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.  Defendant faces a maximum statutory sentence of 20 years in prison and a $250,000 fine on the wire fraud count, and 10 years in prison and a $250,000 fine on the money laundering count.  Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

    The U.S. Securities and Exchange Commission has also filed a civil enforcement action against Lickiss in the Northern District of California.  

    Assistant U.S. Attorneys Ryan Arash Rezaei and Benjamin J. Wolinsky are prosecuting the case with the assistance of Lynette Dixon.  The prosecution is the result of an investigation by the FBI and IRS-CI.  The U.S. Attorney’s Office thanks the Atlanta Regional Office of the SEC for its assistance in the investigation.

    Lickiss Indictment
     

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI Security: Conspiracy Ringleader of $78 Million Diverted Prescription Drug Operation Sentenced to 14 Years in Prison

    Source: US FBI

    MIAMI – Stephen Costa, 40, was sentenced to fourteen years in prison after pleading guilty to his leadership role in a conspiracy that distributed thousands of bottles of diverted pharmaceutical drugs, many intended for HIV and cancer patients, into the legitimate supply chain around the United States.

    According to court documents, Costa was the architect of a scheme, which resulted in the prosecution of 20 defendants in a series of superseding indictments issued between 2019 and 2024. The conspiracy originated in early 2013, when Costa began acquiring licensed pharmaceutical wholesale companies using the names of recruited associates, and established new corporations to distribute the drugs he acquired. Several of Costa’s accomplices were individuals he had previously conspired with in a similar scheme based in New York and others he had known from other businesses or high school.

    Once Costa had control of these companies, he purchased diverted drugs from suppliers he had worked with before and directed his co-conspirators on how to price, market, sell, and distribute the drugs. These diverted drugs were ultimately funneled to legitimate pharmacies around the country.

    Costa continued to expand the Miami-based conspiracy even after his conviction in the New York scheme. Before reporting to prison to serve his sentence, Costa facilitated the introduction of his primary supplier of diverted pharmaceuticals to a co-conspirator to perpetuate the operation during his imprisonment. Costa received several payments from the proceeds of his co-conspirator’s continuing operation.

    In total, approximately $78 million worth of diverted drugs were sold to unsuspecting patients, believing their medications had been shipped directly from legitimate manufacturers—not purchased on the streets and repackaged under false labeling. The criminal operation was shut down in May 2019 through a joint effort by the Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), and FBI Miami.

    U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, Special Agent in Charge Brett D. Skiles of FBI Miami, and Acting Special Agent in Charge Maximillian Pagano of the FDA-OCI Miami Field Office made the announcement.

    Assistant U.S. Attorney Frank Tamen prosecuted the case.

    Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.

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

    Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-20674.

    ###  

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI Security: Miami-Dade Sheriff’s Office Deputy Charged with Receipt and Production of Child Sexual Abuse Material

    Source: US FBI

    MIAMI – Carle Miranda Blum, 51, a sworn uniformed deputy with the Miami-Dade Sheriff’s Office, was arrested today following the filing of a federal complaint charging her with receipt of visual depictions involving the sexual exploitation of minors and production of visual depictions involving the sexual exploitation of minors.

    According to the complaint, Blum received multiple videos and images of the victim, who was 17 years old at the time, engaged in sexually explicit conduct. In the spring of 2025, Blum traveled to Atlanta, Georgia, where she recorded multiple videos of herself engaging in sex acts with the then-minor victim.

    The charge of production of visual depictions involving the sexual exploitation of minors carries a mandatory-minimum of 15 years in prison and a statutory maximum of up to 30 years. The charge of receipt of visual depictions involving the sexual exploitation of minors carries a mandatory-minimum of 5 years in prison and a statutory maximum of up to 20 years. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

    United States Attorney Hayden P. O’Byrne and Special Agent in Charge Brett D. Skiles of FBI Miami made the announcement. The Miami-Dade Sheriff’s Office provided assistance in the investigation. The United States Attorney’s Office for the Northern District of Georgia and FBI Atlanta assisted in Blum’s apprehension and arrest.

    Assistant U.S. Attorney Ilana R. Malkin and Major Crimes Deputy Chief Assistant U.S. Attorney Lauren Astigarraga are prosecuting the case.

    A criminal complaint is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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

    To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration, or an investigative agency. Correspondence with the National Hotline is confidential, and you may request assistance or report a tip anonymously.

    “To report online child sexual exploitation, use the electronic Cyber Tip Line or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children in partnership with the HSI and other law enforcement agencies.”

    To learn more about the National Resource Hotline, visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking, visit www.justice.gov/humantrafficking.

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

    Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 24-mj-02786.

    ###

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI USA: Tillis, Padilla Applaud Senate Judiciary Committee Passage of the TRACE Act

    US Senate News:

    Source: United States Senator for North Carolina Thom Tillis
    WASHINGTON, D.C. – Today, Senators Thom Tillis (R-NC) and Alex Padilla (D-CA) applauded the passage of the TRACE Act out of the Senate Judiciary Committee. The TRACE Act is a bipartisan, bicameral bill that would require the U.S. Department of Justice (DOJ) to include an additional category to the existing National Missing and Unidentified Persons Systems (NamUs) database so the public and law enforcement partners can denote cases where the person went missing or was identified on federal land or territorial waters of the United States —including by providing specific location details. 
    The bill also requires DOJ to submit an annual report to Congress on the number of cases of persons missing or suspected of going missing on public lands or territorial waters of the United States from the previous year. With this new feature, family and friends of people who have gone missing on public lands could more easily find and include this information in NamUs, while law enforcement agencies can simultaneously work to improve the national records of individuals missing on public lands.  
    “Every year, people go missing on public lands without being recorded in the National Missing and Unidentified Persons System,” said Senator Tillis. “This oversight is impeding law enforcement from keeping track of those who go missing to help search and rescue efforts. I applaud the Senate Judiciary Committee for passing this bipartisan, bicameral legislation so these cases can be added to the database and potentially save hundreds of lives in the future, and I look forward to supporting this legislation on the Senate floor.”
    “Thousands of people go missing on public lands every year in the United States, but without an effective tracking system, law enforcement faces significant challenges in finding them,” said Senator Padilla. “Public lands should be safe for everyone. That’s why I will keep working with Senator Tillis and my colleagues across the aisle to pass this bipartisan legislation to improve data accuracy and accessibility, give law enforcement better tools to resolve cases, and bring peace of mind to affected families.”
    Background:
    According to a NamUs report, over 600,000 people go missing in the United States annually. While the majority of these cases are resolved, tens of thousands of people remain missing every year. There are approximately 640 million acres of federal land which include national parks, national forests, and Bureau of Land Management lands. 
    Estimates suggest that at least 1,600 people have gone missing on public lands, though the number is likely much higher, as isolated or rugged terrain on public lands can make it especially difficult to find or identify people who go missing. Despite this, there is no functional system to report people who have gone missing on public lands. Having accurate data on how many people go missing on our public lands every year is crucial to aid search and rescue efforts and resolve cases. 
    NamUs is the main system used by law enforcement, families and friends of missing persons, medical examiners, and coroners to report unidentified remains and missing persons, and is also used by the public.  
    The TRACE Act is endorsed by the Public Lands Solution, Jewish Women’s Institute, Major County Sheriffs Association, Association of State Criminal Investigative Agencies (ASCIA), NDAA, Raven, National Association to End Sexual Violence, and the Outdoor Industry Association.
    Full text of the bill is available HERE.
      

    MIL OSI USA News –

    July 26, 2025
  • MIL-OSI Security: Leader of Multi-State Fentanyl and Methamphetamine Trafficking Ring Sentenced to Federal Prison

    Source: US FBI

    ROME, Ga. – Wilfort Foster, III, 41, of El Monte, California, was sentenced to 28 years in federal prison after pleading guilty to narcotics and money laundering conspiracy charges.  Foster, a convicted felon serving a sentence of probation during a portion of the offense, led an operation that moved hundreds of kilograms of methamphetamine, as well as significant quantities of fentanyl, from California to the North Georgia area and elsewhere, and then laundered hundreds of thousands of dollars in drug proceeds. 

    “Our office partnered with a host of federal, state, and local law enforcement agencies to dismantle a significant, multi-state drug trafficking and money laundering network,” said U.S. Attorney Theodore S. Hertzberg. “Foster’s 28-year prison sentence should serve as a robust warning to others who might consider trafficking deadly fentanyl and methamphetamine in North Georgia.”

    “DEA is committed to going after money laundering networks that move cash made from the sale of illegal drugs in the United States,” said Jae W. Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “We will continue to follow the money trail while working alongside our partners to hold those accountable who profit from the distribution of deadly fentanyl and methamphetamine.” 

    “This sentencing marks the end of a years-long effort to dismantle a dangerous drug trafficking network that was pushing lethal fentanyl and methamphetamine into our communities,” said Paul Brown, Special Agent in Charge of FBI Atlanta. “The FBI remains focused on dismantling these dangerous organizations at every level—from supply to distribution to laundering the proceeds of their crimes.”

    “This significant sentence reflects the massive danger that fentanyl and illicit narcotics pose to our communities,” said Steven N. Schrank, the Special Agent in Charge of Homeland Security Investigations in Georgia and Alabama. “Thanks to the dedicated efforts of HSI and our law enforcement partners, Wilfort Foster, III, who led a major drug trafficking ring, will no longer be able to endanger lives with these deadly substances.”

    According to U.S. Attorney Hertzberg, the charges and other information presented in court: Beginning in 2017 and continuing into 2022, Foster and others conspired to transport methamphetamine and fentanyl from California to Cartersville, Georgia and other areas. Foster ran a stash house and illegal gambling operation in his California barbershop, which he used to supply his network with large amounts of fentanyl and methamphetamine for sale. In one instance, Foster supplied a co-defendant with more than 22 kilograms of methamphetamine that law enforcement subsequently seized. 

    After Foster’s operation sold drugs, conspirators in Georgia laundered more than $600,000 in cash to Foster by using shell companies and flying with hundreds of thousands of dollars in cash to California. Foster maintained tight control of his network and once broke a co-defendant’s jaw during a feud over the co-defendant’s drug debt. 

    During the multi-agency investigation, law enforcement seized significant quantities of narcotics and more than a dozen firearms, including an AR-15. Foster continued his drug and money laundering operation in Georgia despite being on probation in California in a case involving the seizure of over nine kilograms of methamphetamine and two firearms. 

    Earlier today, United States District Judge William M. Ray II sentenced Foster to serve 28 years in prison to be followed by 5 years of supervised release. Foster was convicted of conspiracy to possess with the intent to distribute methamphetamine and fentanyl and conspiracy to commit money laundering on January 6, 2025, after he pleaded guilty. 

    Another member of Foster’s organization, Steven Ham, 43, of Cartersville, Georgia, was sentenced to 15 years in prison and 10 years of supervised release on November 26, 2024, after pleading guilty to conspiracy to possess with the intent to distribute methamphetamine. 

    Additionally, the following defendants have pleaded guilty as part of this case and are awaiting sentencing:

    • Clifford Alexander, 39, of Gadsden, Alabama, pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine.
    • Frank Miller, 47, of Cartersville, Georgia, pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine and fentanyl, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering.
    • Kenneth Antoine Scott, 41, of East Point, Georgia, pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
    • Lori Silvers, 46, of Rockmart, Georgia, pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine.
    • Nia Thomas, 31, of Atlanta, Georgia, pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine.

    This case was investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, United States Postal Inspection Service, Bartow-Cartersville Drug Task Force, Bartow County Sheriff’s Office, Cartersville Police Department, Cedartown Police Department, Polk County Police Department, Acworth Police Department, Kennesaw Police Department, El Monte (CA) Police Department, Los Angeles (CA) Sheriff’s Department, Rutherford County (TN) Sheriff’s Office, Sevier County (TN) Sheriff’s Office, Kansas City (KS) Police Department, and the Georgia Bureau of Investigation.

    Assistant United States Attorneys Calvin A. Leipold, III, Matthew R. LaGrone, and Jeffrey Brown; former Assistant United States Attorneys Richard Beaulieu and Zachary Howard; and former Special Assistant United States Attorney Rachel Lyons prosecuted the case.

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

    This effort is part of an 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.

    The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.

    For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6185. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.

    MIL Security OSI –

    July 26, 2025
  • MIL-OSI USA: Press Release: FDIC Publishes Enforcement Orders for June 2025

    Source: US Federal Deposit Insurance Corporation FDIC

    CategoriesBusiness, Commerce, MIL-OSI, United States Federal Government, United States Government, United States of America, US Commerce, US Federal Deposit Insurance Corporation FDIC, US Federal Government, US Insurance Sector, USA

    Post navigation

    WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) today published a list of orders of administrative enforcement actions taken against banks and individuals in June 2025. There are no administrative hearings scheduled for August 2025.

    Order Terminating Consent Order:

    • Citizens State Bank, Ganado, Texas

    Order Terminating Order to Pay Civil Money Penalty:

    • CNB Bank, Carlsbad, New Mexico

    Orders to Pay Civil Money Penalties:

    • Royal Bank, Elroy, Washington
    • Tioga-Franklin Savings Bank, Philadelphia, Pennsylvania

    Orders of Prohibition from Further Participation:

    • One American Bank, Centerville, South Dakoka
    • Watermark Bank, Oklahoma City, Oklahoma

    Orders of Termination of Insurance:

    • Community Bank, Joseph, Oregon
    • First Financial Northwest Bank, Renton, Washington
    • Mid-Southern Savings Bank, FSB, Salem, Indiana
    • Republic Bank of Arizona, Phoenix, Arizona
    • Security State Bank, Centralia, Washington

    Orders Terminating Orders Relating to Section 19 of the FDI Act (Section 19):

    • Six Orders Terminating Orders Issued Pursuant to Section 19 

    Notices of Charges:

    • Truist Bank, Charlotte, NC

    # # #

    MEDIA CONTACT: 
    LaJuan Williams-Young
    lwilliams-young@FDIC.gov

    The FDIC does not send unsolicited email. If this publication has reached you in error, or if you no longer wish to receive this service, please unsubscribe.

    MIL OSI USA News –

    July 26, 2025
  • MIL-OSI: Nasdaq Announces Mid-Month Open Short Interest Positions in Nasdaq Stocks as of Settlement Date July 15, 2025

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, July 25, 2025 (GLOBE NEWSWIRE) — At the end of the settlement date of July 15, 2025, short interest in 3,260 Nasdaq Global MarketSM securities totaled 13,792,841,090 shares compared with 14,138,758,851 shares in 3,257 Global Market issues reported for the prior settlement date of June 30, 2025. The mid-July short interest represents 2.37 days compared with 2.59 days for the prior reporting period.

    Short interest in 1,647 securities on The Nasdaq Capital MarketSM totaled 2,853,251,720 shares at the end of the settlement date of July 15, 2025, compared with 2,790,159,938 shares in 1,636 securities for the previous reporting period. This represents a 1.00 day average daily volume; the previous reporting period’s figure was 1.00.

    In summary, short interest in all 4,907 Nasdaq® securities totaled 16,646,092,810 shares at the July 15, 2025 settlement date, compared with 4,893 issues and 16,928,918,789 shares at the end of the previous reporting period. This is 1.84 days average daily volume, compared with an average of 1.72 days for the prior reporting period.

    The open short interest positions reported for each Nasdaq security reflect the total number of shares sold short by all broker/dealers regardless of their exchange affiliations. A short sale is generally understood to mean the sale of a security that the seller does not own or any sale that is consummated by the delivery of a security borrowed by or for the account of the seller.

    For more information on Nasdaq Short interest positions, including publication dates, visit
    http://www.nasdaq.com/quotes/short-interest.aspx
    or http://www.nasdaqtrader.com/asp/short_interest.asp.

    About Nasdaq:
    Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.     

    NDAQO

    Media Contact:
    Maximilian Leitenbeger
    Maximilian.leitenberger@nasdaq.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/191e07e7-3c36-44fc-a732-fcbe0fed5e44

    The MIL Network –

    July 26, 2025
  • MIL-OSI: Lakeland Financial Reports Record Second Quarter Performance; Net Income Grows by 20% to $27.0 Million, as Net Interest Income Expands by 14%

    Source: GlobeNewswire (MIL-OSI)

    WARSAW, Ind., July 25, 2025 (GLOBE NEWSWIRE) — Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported record second quarter net income of $27.0 million for the three months ended June 30, 2025, which represents an increase of $4.4 million, or 20%, compared with net income of $22.5 million for the three months ended June 30, 2024. Diluted earnings per share were $1.04 for the second quarter of 2025 and increased $0.17, or 20%, compared to $0.87 for the second quarter of 2024. On a linked quarter basis, net income increased $6.9 million, or 34%, from $20.1 million. Diluted earnings per share increased $0.26, or 33%, from $0.78 on a linked quarter basis.

    Pretax pre-provision earnings, which is a non-GAAP measure, were $35.9 million for the three months ended June 30, 2025, an increase of $528,000, or 1%, compared to $35.4 million for the three months ended June 30, 2024. Adjusted core operational profitability, a non-GAAP measure that excludes the impact of certain non-routine operating events that occurred during 2024, improved by $7.8 million, or 41%, from $19.2 million to $27.0 million for the three months ended June 30, 2024 and 2025, respectively.

    The company further reported net income of $47.1 million for the six months ended June 30, 2025, versus $46.0 million for the comparable period of 2024, an increase of $1.1 million, or 2%. Diluted earnings per share also increased 2% to $1.82 for the six months ended June 30, 2025, versus $1.78 for the comparable period of 2024. Pretax pre-provision earnings were $67.0 million for the six months ended June 30, 2025, an increase of $2.2 million, or 3%, compared to $64.7 million for the six months ended June 30, 2024. Adjusted core operational profitability improved by $5.2 million, or 12%, from $41.8 million to $47.1 million for the six months ended June 30, 2024 and 2025, respectively.

    “We are pleased to report strong earnings momentum for the second quarter of 2025, which has benefited from double digit growth of net interest income and contributed to good overall performance in the first half of 2025,” observed David M. Findlay, Chairman and CEO. “Importantly, our Lake City Bank Team continues to generate healthy loan and deposit growth. It’s been a rewarding first six months of 2025 with this strong financial performance, healthy balance sheet growth and continued success on the business development front for all of our revenue producing teams.”

    Quarterly Financial Performance

    Second Quarter 2025 versus Second Quarter 2024 highlights:

    • Return on average equity of 15.52%, compared to 14.19%
    • Return on average assets of 1.57%, compared to 1.37%
    • Tangible book value per share grew by $2.14, or 8%, to $27.48
    • Average loans grew by $194.8 million, or 4%, to $5.23 billion
    • Core deposits grew by $423.9 million, or 8%, to $6.03 billion
    • Net interest margin improved 25 basis points to 3.42% versus 3.17%
    • Net interest income increased by $6.6 million, or 14%
    • Provision expense of $3.0 million, compared to $8.5 million
    • Watch list loans as a percentage of total loans improved to 3.67% from 5.31%
    • Nonaccrual loans declined 46% to $30.6 million compared to $57.1 million
    • Common equity tier 1 capital ratio improved to 14.73%, compared to 14.28%
    • Total risk-based capital ratio improved to 15.86%, compared to 15.53%
    • Tangible capital ratio improved to 10.15%, compared to 9.91%
    • Average equity increased by $58.0 million, or 9%

    Second Quarter 2025 versus First Quarter 2025 highlights:

    • Return on average equity of 15.52%, compared to 11.70%
    • Return on average assets of 1.57%, compared to 1.20%
    • Average loans grew by $43.7 million, or 1%, to $5.23 billion
    • Core deposits grew by $191.6 million, or 3%, to $6.03 billion
    • Net interest margin improved 2 basis points to 3.42% versus 3.40%
    • Net interest income increased by $2.0 million, or 4%
    • Pretax, pre-provision earnings increased $4.9 million, or 16%
    • Provision expense of $3.0 million, compared to $6.8 million
    • Nonaccrual loans declined 47% to $30.6 million compared to $57.4 million
    • Watch list loans as a percentage of total loans improved to 3.67% from 4.13%
    • Common equity tier 1 capital ratio of 14.73%, compared to 14.51%
    • Total risk-based capital ratio of 15.86%, compared to 15.77%
    • Tangible capital ratio of 10.15%, compared to 10.09%

    Capital Strength

    The company’s total capital as a percentage of risk-weighted assets improved to 15.86% at June 30, 2025, compared to 15.53% at June 30, 2024 and 15.77% at March 31, 2025. These capital levels significantly exceeded the 10.00% regulatory threshold required to be characterized as “well capitalized” and reflect the company’s robust capital base.

    The company’s tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, improved to 10.15% at June 30, 2025, compared to 9.91% at June 30, 2024 and 10.09% at March 31, 2025. Unrealized losses from available-for-sale investment securities were $185.3 million at June 30, 2025, compared to $194.9 million at June 30, 2024 and $188.3 million at March 31, 2025. Excluding the impact of accumulated other comprehensive income (loss) on tangible common equity and tangible assets, the company’s ratio of adjusted tangible common equity to adjusted tangible assets, a non-GAAP financial measure, was 12.17% at June 30, 2025, compared to 12.18% at June 30, 2024, and 12.19% at March 31, 2025.

    As announced on July 8, 2025, the board of directors approved a cash dividend for the second quarter of $0.50 per share, payable on August 5, 2025, to shareholders of record as of July 25, 2025. The second quarter dividend per share represents a 4% increase from the $0.48 dividend per share paid for the second quarter of 2024.

    The company utilized its share repurchase program during the second quarter of 2025 and repurchased 30,300 shares of its common stock for $1.7 million at a weighted average price per share of $55.94. The company has $28.3 million of remaining availability under the board-approved share repurchase program.

    “Our capital position is strong and provides capacity for continued organic growth of our balance sheet as well as continued growth of our common stock dividend to shareholders,” stated Kristin L. Pruitt, President. “While we did utilize our share repurchase program during the second quarter, our priority for capital is to continue capital retention to support loan growth in our Indiana markets and provide for continued balance sheet growth opportunities.”

    Loan Portfolio

    Average total loans of $5.23 billion in the second quarter of 2025 increased $194.8 million, or 4%, from $5.03 billion for the second quarter of 2024 and increased $43.7 million, or 1%, from $5.19 billion for the first quarter of 2025. Average total loans for the six months ended June 30, 2025 were $5.21 billion, an increase of $205.0 million, or 4%, from $5.00 billion for the six months ended June 30, 2024.

    Total loans, excluding deferred fees and costs, increased by $173.8 million, or 3%, from $5.06 billion as of June 30, 2024, to $5.23 billion as of June 30, 2025. The increase in loans occurred across much of the portfolio, with our commercial real estate and multi-family residential loan portfolio growing by $177.0 million, or 7%, our consumer 1-4 family mortgage loan portfolio growing by $46.2 million, or 10%, and our other consumer loan portfolio growing by $6.0 million, or 6%. These increases were offset by contractions to our commercial and industrial loan portfolio of $32.5 million, or 2%, and our agri-business and agricultural loan portfolio of $21.6 million, or 6%. On a linked quarter basis, total loans, excluding deferred fees and costs, increased by $3.4 million, or less than 1%, from $5.23 billion at March 31, 2025. The linked quarter increase was primarily a result of growth in total commercial real estate and multi-family residential loans of $59.6 million, or 2%, and growth in total consumer loans of $17.5 million, or 3%. This growth was offset by contractions in total agri-business and agricultural loans of $44.3 million, or 12%, and total commercial and industrial loans of $29.8 million, or 2%.

    Commercial loan originations for the second quarter included approximately $390.0 million in loan originations, offset by approximately $404.0 million in commercial loan pay downs. Line of credit usage increased to 44% as of June 30, 2025, compared to 41% at June 30, 2024 and 43% as of March 31, 2025. Total available lines of credit contracted by $48.0 million, or 1%, as compared to a year ago, and line usage increased by $100.0 million, or 5%, over that period. The company has limited exposure to commercial office space borrowers, all of which are in the bank’s Indiana markets. Loans totaling $106.9 million for this sector represented 2% of total loans at June 30, 2025, an increase of $6.4 million, or 6%, from March 31, 2025. Commercial real estate loans secured by multi-family residential properties and secured by non-farm non-residential properties were approximately 221% of total risk-based capital at June 30, 2025.

    “We are pleased that commercial line utilization continues to improve with a utilization rate of 44% at the end of the second quarter 2025,” added Findlay. “This marks the highest line utilization rate since 2020, and we are encouraged that borrower demand for working lines of capital has increased. During the second quarter, construction loans migrated as planned to the CRE multi-family segment. In addition, loan payoffs received during the second quarter impacted the owner occupied CRE and Agriculture segments.”

    Diversified Deposit Base

    The bank’s diversified deposit base has grown on a year-over-year basis and on a linked quarter basis.

    (in thousands) June 30, 2025   March 31, 2025   June 30, 2024
    Retail $ 1,755,750   28.4 %   $ 1,787,992   30.0 %   $ 1,724,777   29.9 %
    Commercial   2,256,620   36.6       2,336,910   39.2       2,150,127   37.3  
    Public funds   2,014,047   32.6       1,709,883   28.7       1,727,593   30.0  
    Core deposits   6,026,417   97.6       5,834,785   97.9       5,602,497   97.2  
    Brokered deposits   150,416   2.4       125,409   2.1       161,040   2.8  
    Total $ 6,176,833   100.0 %   $ 5,960,194   100.0 %   $ 5,763,537   100.0 %
     

    Total deposits increased $413.3 million, or 7%, from $5.76 billion as of June 30, 2024, to $6.18 billion as of June 30, 2025. The increase in total deposits was driven by an increase in core deposits (which excludes brokered deposits) of $423.9 million, or 8%. Total core deposits at June 30, 2025 were $6.03 billion and represented 98% of total deposits, as compared to $5.60 billion and 97% of total deposits at June 30, 2024.

    The increase in core deposits since June 30, 2024, reflects growth in all three core deposit segments. Public funds deposits grew annually by $286.5 million, or 17%, to $2.01 billion. Public funds deposits as a percentage of total deposits were 33%, up from 30% a year ago. Growth in public funds was positively impacted by the addition of new public funds customers in the Lake City Bank footprint, including their operating accounts. Commercial deposits grew annually by $106.5 million, or 5%, to $2.26 billion and remained at 37% as a percentage of total deposits. Retail deposits grew by $31.0 million, or 2%, to $1.76 billion. Retail deposits as a percentage of total deposits was 28% of total deposits, down from 30% a year ago.

    On a linked quarter basis, total deposits increased $216.6 million, or 4%, from $5.96 billion at March 31, 2025, to $6.18 billion at June 30, 2025. Core deposits increased by $191.6 million, or 3%, while brokered deposits increased by $25.0 million, or 20%. The linked quarter growth in core deposits, was positively impacted by the addition of new public funds customers. Offsetting this increase was a decrease in commercial deposits of $80.3 million, or 3%, and a decrease in retail deposits of $32.2 million, or 2%.

    Average total deposits were $6.10 billion for the second quarter of 2025, an increase of $276.5 million, or 5%, from $5.82 billion for the second quarter of 2024. Average interest-bearing deposits drove the increase in average total deposits and increased by $263.4 million, or 6%. Contributing to the overall growth of interest-bearing deposits was an increase to average interest-bearing checking accounts of $492.4 million, or 15%. Offsetting this increase was a reduction in average time deposits of $225.9 million, or 22%, and a decrease to average savings deposits of $3.2 million, or 1%. Average noninterest-bearing demand deposits increased by $13.2 million, or 1% to $1.2 billion.

    On a linked quarter basis, average total deposits increased by $221.8 million, or 4%, from $5.87 billion for the first quarter of 2025 to $6.10 billion for the second quarter of 2025. Average interest bearing deposits drove the increase to total average deposits, which increased by $236.1 million, or 5%. Average interest bearing checking accounts were responsible for the increase, growing by $281.5 million, or 8%. Offsetting this increase were decreases to total average time deposits of $47.4 million, or 6%, and average noninterest bearing demand deposits decreased by $14.3 million, or 1%.

    Checking account trends as of June 30, 2025 compared to June 30, 2024 include growth of $352.1 million, or 23%, in aggregate public fund checking account balances, growth of $93.4 million, or 5%, in aggregate commercial checking account balances, and growth of $52.2 million, or 6%, in aggregate retail checking account balances. The number of accounts has also grown for all three segments, with growth of 9% for public funds accounts, 2% for commercial accounts and 1% for retail accounts during the prior twelve months.

    “Deposit growth is strong in many measurable ways. All deposit segments have grown on a year over year basis, and the bank continues to add new public fund customers and their operating accounts,” commented Lisa M. O’Neill, Executive Vice-President and Chief Financial Officer.

    Deposits not covered by FDIC deposit insurance as a percentage of total deposits were 59% as of June 30, 2025, compared to 57% at March 31, 2025, and 58% at June 30, 2024, reflecting growth in public fund deposits over those periods. Deposits not covered by FDIC deposit insurance or the Indiana Public Deposit Insurance Fund, which insures public funds deposits in Indiana, were 27% of total deposits at June 30, 2025, compared to 29% at March 31, 2025, and 29% at June 30, 2024. At June 30, 2025, 98% of deposit accounts had deposit balances less than $250,000.

    Net Interest Margin

    Net interest margin was 3.42% for the second quarter of 2025, representing a 25 basis point increase from 3.17% for the second quarter of 2024. This improvement was driven by a reduction in the company’s funding costs, with interest expense as a percentage of average earning assets falling by 49 basis points from 2.90% for the second quarter of 2024 to 2.41% for the second quarter of 2025. Offsetting the decrease in funding costs was a decrease to earning asset yields of 24 basis points from 6.07% for the second quarter of 2024 to 5.83% for the second quarter of 2025. During the second quarter of 2025, the company recorded a prepayment fee of $541,000 from the early payment of a fixed rate commercial loan, which was recorded as part of interest income. The prepayment fee benefited net interest margin by 3 basis points for the second quarter. Excluding the impact of the prepayment penalty, net interest margin improved by 22 basis points. The easing of monetary policy by the Federal Reserve Bank, which began in September of 2024, drove the reduction in funding costs that provided for the net interest margin expansion through deposit repricing as compared to the prior year quarter.

    Net interest margin expanded by 2 basis points to 3.42% for the second quarter of 2025, compared to 3.40% for the linked first quarter of 2025. Average earning asset yields increased by 6 basis points from 5.77% to 5.83% on a linked quarter basis and interest expense as a percentage of average earning assets increased 4 basis points from 2.37% to 2.41%. Excluding the impact of the prepayment penalty, net interest margin contracted by 1 basis point compared to the linked first quarter.

    The cumulative loan beta for the current rate-easing cycle that began in September 2024 is 29% compared to the deposit beta of 50% and has resulted in net interest margin expansion which has benefited net interest income. Net interest income was $54.9 million for the second quarter of 2025, representing an increase of $6.6 million, or 14%, as compared to $48.3 million for the second quarter of 2024. On a linked quarter basis, net interest income increased $2.0 million, or 4%, from $52.9 million for the first quarter of 2025. Net interest income increased by $12.0 million, or 13%, from $95.7 million for the six months ended June 30, 2024, to $107.8 million for the six months ended June 30, 2025.

    O’Neill noted, “We are pleased to report healthy net interest margin expansion of 25 basis points as compared to a year ago. In this higher-for-longer interest rate environment, we continue to benefit from fixed rate loan repricing and new loan origination activity. In addition, we are pleased that our core deposits represent 98% of our total funding needs compared to 97% a year ago. Core deposit growth has outpaced our loan growth in 2025, which has strengthened our liquidity position. We have begun to reinvest some maturing investment securities into higher yielding investment securities with short duration, which is also benefiting net interest margin.”

    Asset Quality

    The company recorded a provision for credit losses of $3.0 million in the second quarter of 2025, a decrease of $5.5 million as compared to $8.5 million in the second quarter of 2024. On a linked quarter basis, the provision expense decreased by $3.8 million, from $6.8 million for the first quarter of 2025. Provision expense for the second quarter and for the six months ended June 30, 2025, was primarily driven by an increase in the specific allocation for a previously disclosed $43.3 million nonperforming credit for an industrial company in Northern Indiana as well as loan growth. During the second quarter of 2025, the non-performing borrower reached an agreement to sell and liquidate the business to two unrelated entities. The transactions are expected to close in the third quarter of 2025. As a result of the pending sale and liquidation, the company recognized a charge off of $28.6 million during the second quarter, which was fully allocated at the time of the charge off. The company expects to collect the remainder of the outstanding principal balance from sale and liquidation proceeds and proceeds from the personal guarantee from the borrower.

    The ratio of allowance for credit losses to total loans was 1.27% at June 30, 2025, down from 1.60% at June 30, 2024, and 1.77% at March 31, 2025. The decrease in the allowance coverage was due to a significant reduction of 46%, or $26.5 million, in nonaccrual loans, which were $30.6 million at June 30, 2025 versus $57.1 million at June 30, 2024. Net charge offs in the second quarter of 2025 were $28.9 million, compared to $949,000 in the second quarter of 2024 and $327,000 during the linked first quarter of 2025. Annualized net charge offs to average loans were 2.22% for the second quarter of 2025, compared to 0.08% for the second quarter of 2024 and 0.03% for the linked first quarter of 2025. Annualized net charge offs to average loans were 1.13% for the six months ended June 30, 2025 compared to 0.05% for the six months ended June 30, 2024.

    Nonperforming assets decreased $26.5 million, or 46%, to $31.1 million as of June 30, 2025, versus $57.6 million as of June 30, 2024. On a linked quarter basis, nonperforming assets decreased $26.8 million, or 46%, compared to $57.9 million as of March 31, 2025. The ratio of nonperforming assets to total assets at June 30, 2025 decreased to 0.45% from 0.88% at June 30, 2024, and decreased from 0.84% at March 31, 2025.

    Total individually analyzed and watch list loans decreased by $76.6 million, or 29%, to $191.6 million as of June 30, 2025, versus $268.3 million as of June 30, 2024. On a linked quarter basis, total individually analyzed and watch list loans decreased by $23.9 million, or 11%, from $215.6 million at March 31, 2025. Watch list loans as a percentage of total loans were 3.67% at June 30, 2025, a decrease of 164 basis points compared to 5.31% at June 30, 2024, and 46 basis points from 4.13% at March 31, 2025.

    “We are pleased to have reached a resolution on the nonperforming loan that we have been working through for the past several quarters,” stated Findlay. “Importantly, our semi-annual loan portfolio reviews with all loan officers of the bank affirmed that asset quality is stable and that economic conditions in our footprint are contributing to new business development opportunities. We continue to monitor the impact of tariffs on our borrowers. It is too early to quantify the impact of U.S. trade policy on our borrowers’ businesses, although there appears to be less concern on the impact of tariffs that we heard from borrowing clients previously.”

    Investment Portfolio Overview

    Total investment securities were $1.13 billion at June 30, 2025, reflecting an increase of $5.5 million, or less than 1%, as compared to $1.12 billion at June 30, 2024. Investment securities represented 16% of total assets on June 30, 2025, as compared to 17% and June 30, 2024 and March 31, 2025. The company anticipates receiving principal and interest cash flows of approximately $54.5 million during the remainder of 2025 from the investment securities portfolio and plans to use that liquidity to fund loan growth as well as to fund reinvestments to the investment securities portfolio. Tax equivalent adjusted effective duration for the investment portfolio was 5.9 years at June 30, 2025, compared to 6.5 years at June 30, 2024 and unchanged from 5.9 years at March 31, 2025.

    Noninterest Income

    The company’s noninterest income decreased $9.0 million, or 44%, to $11.5 million for the second quarter of 2025, compared to $20.4 million for the second quarter of 2024. Noninterest income was elevated during the second quarter of 2024 as compared to the second quarter of 2025 as a result of the net gain on Visa shares of $9.0 million that was recorded in the second quarter of 2024. Adjusted core noninterest income, a non-GAAP financial measure that excludes the effect of the net gain on Visa shares and an insurance recovery, increased $58,000, or less than 1%, from $11.4 million during the second quarter of 2024. Bank owned life insurance income increased $150,000, or 17%, primarily as a result of increased general account bank owned life insurance income from the purchase of insurance policies during the second quarter of 2025. Mortgage banking income increased $101,000 due to growth in the company’s mortgage pipeline, which favorably impacted secondary market loan sale gains and mortgage rate lock income. Wealth advisory fees increased $70,000, or 3%, driven by continued growth in customers and assets under management. Investment brokerage fees increased $72,000, or 15%, due to increased volume and product mix. Offsetting these increases was a decrease to other income of $296,000, or 43%, primarily driven by reduced limited partnership investment income.

    Noninterest income for the second quarter of 2025 increased by $558,000, or 5%, on a linked quarter basis from $10.9 million during the first quarter of 2025. Bank owned life insurance income increased $718,000, or 223%, primarily as a result of improved market performance of the bank’s variable owned life insurance policies and increased general account bank owned life insurance income from the purchase of insurance policies during the second quarter of 2025. Loan and service fee income increased $122,000, or 4%, from increased interchange fee income. Mortgage banking income increased $175,000, as a result of income derived from secondary mortgage sales and pipeline growth. Investment brokerage fees income increased $98,000, or 22%. Offsetting these increases was a decrease to other income of $460,000, or 54%, primarily a result of reduced limited partnership investment income. Wealth advisory fees, which benefited in the linked first quarter of 2025 from significant estate settlement fee income decreased $200,000, or 7%.

    “The linked quarter improvement of noninterest income of 5% is encouraging as we continue to focus on growing our fee-based businesses,” noted Findlay. “We are particularly pleased with the continued growth of our Wealth Advisory Management area, which has recently added revenue generating employees in our footprint with a focus in Indianapolis. Assets under management in this area have reached nearly $3.0 billion at quarter end.”

    Noninterest income decreased by $10.6 million, or 32%, to $22.4 million for the six months ended June 30, 2025, compared to $33.1 million for the prior year six-month period. Noninterest income was elevated during the first six months of 2024 as compared to the comparable period of 2025 primarily because of the net gain on Visa shares of $9.0 million and a $1.0 million insurance recovery. Adjusted core noninterest income, a non-GAAP financial measure that excludes the impact of these non-routine events, declined $626,000, or 3%, from $23.0 million for the six months ended June 30, 2024. Other income decreased $1.6 million, or 56%, as other income during the first six months of 2024 benefited from the $1.0 million insurance recovery. Reduced limited partnership investment income further contributed to the decline between the periods. Bank owned life insurance income decreased $564,000, or 29%, primarily as a result of reduced market performance from the bank’s variable bank owned life insurance policies, which correlate to returns in the equities markets. Offsetting these decreases were increases to wealth advisory fees of $482,000, or 10%, and service charges on deposit accounts of $104,000, or 2%. The increase in wealth advisory fees was primarily driven by continued growth in customers and assets under management.

    Noninterest Expense

    Noninterest expense decreased $2.9 million, or 9%, to $30.4 million for the second quarter of 2025, compared to $33.3 million during the second quarter of 2024. Noninterest expense was elevated during the second quarter of 2024 as compared to 2025 due to a $4.5 million accrual that was recorded from the resolution of a legal matter. Adjusted core noninterest expense, which excludes the impact of the legal accrual, increased $1.6 million, or 6%, from $28.8 million for the second quarter of 2024. Salaries and benefits expense increased by $938,000, or 6%. The primary drivers for the increase to salaries and benefits expense were increased salaries expense of $756,000 and increased health insurance expense of $127,000. Additionally, data processing fees and supplies expense increased $340,000, or 9%, from continued investment in customer-facing and operational technology solutions. Offsetting these increases were decreases to other expense of $3.8 million, or 62%, professional fees of $417,000, or 20%, and corporate and business development expense of $105,000, or 8%. The decrease to other expense was driven by the legal accrual recorded during the second quarter of 2024. The decrease to professional fees was primarily driven by reduced technology implementation consulting fees and swap collateral fees. Corporate and business development expense decreased primarily as a result of lower advertising expense.

    On a linked quarter basis, noninterest expense decreased by $2.3 million, or 7%, from $32.8 million during the first quarter of 2025. The primary drivers for the decrease to noninterest expense was a decrease to salaries and employee benefits of $806,000, or 5%, due to a reduction in HSA contributions expense of $441,000, resulting from the timing of the annual employer contribution to employee accounts, and a reduction in performance-based compensation accruals. Professional fees decreased $674,000, or 28%, and were primarily driven by reduced technology implementation consulting fees and swap collateral interest expense. Other expense decreased $353,000, or 13%, as other expense was elevated in the linked first quarter of 2025 from the timing of semiannual director share awards. Corporate and business development expense decreased by $246,000, or 18%, due to reduced advertising expense, primarily driven by the timing of when advertisement television spots were purchased and utilized. Net occupancy expense decreased $233,000, or 12%, due to reductions in seasonal expenses. Data processing fees and supplies expense decreased $113,000, or 3%.

    Noninterest expense decreased by $843,000, or 1%, for the six months ended June 30, 2025 to $63.2 million compared to $64.0 million for the six months ended June 30, 2024. Adjusted core noninterest expense, which excludes the impact of the $4.5 million legal accrual, increased $3.7 million, or 6%, from $59.5 million for the six months ended June 30, 2024. Salaries and benefits expense increased by $2.0 million, or 6%. Data processing fees and supplies and expense increased $766,000, or 10%. Net occupancy expense increased $289,000, or 8%, as a result of increased occupancy expense from the continued expansion of the company’s branch network and improvements to existing facilities. Offsetting these increases were decreases to other expense of $3.4 million, or 41%, and professional fees of $500,000, or 11%.

    The company’s efficiency ratio was 45.9% for the second quarter of 2025, compared to 48.5% for the second quarter of 2024 and 51.4% for the linked first quarter of 2025. The company’s adjusted core efficiency ratio, a non-GAAP financial measure, was 48.2% for the second quarter of 2024.

    The company’s efficiency ratio was 48.6% for the six months ended June 30, 2025, compared to 49.7% for the comparable period in 2024. The company’s adjusted core efficiency ratio was 50.1% for the six months ended June 30, 2024.

    Findlay added, “We are pleased with the improvement in our efficiency ratio, which has benefited from strong core revenue growth of 10% on a year-over-year basis. Our growth in noninterest expense is focused on continued investments in human capital, technology solutions and organic expansion of our banking footprint, particularly in Indianapolis.”

    Information regarding Lakeland Financial Corporation may be accessed on the home page of its subsidiary, Lake City Bank, at lakecitybank.com. The company’s common stock is traded on the Nasdaq Global Select Market under “LKFN.” Lake City Bank, a $7.0 billion bank headquartered in Warsaw, Indiana, was founded in 1872 and serves Central and Northern Indiana communities with 54 branch offices and a robust digital banking platform. Lake City Bank’s community banking model prioritizes building in-market long-term customer relationships while delivering technology-forward solutions for retail and commercial clients.

    This document contains, and future oral and written statements of the company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “continue,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. The company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain and, accordingly, the reader is cautioned not to place undue reliance on any forward-looking statements made by the company. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the company undertakes no obligation to update any statement in light of new information or future events. Numerous factors could cause the company’s actual results to differ from those reflected in forward-looking statements, including the effects of economic, business and market conditions and changes, particularly in our Indiana market area, including prevailing interest rates and the rate of inflation; governmental trade, monetary and fiscal policies; the risks of changes in interest rates on the levels, composition and costs of deposits, loan demand and the values and liquidity of loan collateral, securities and other interest sensitive assets and liabilities; and changes in borrowers’ credit risks and payment behaviors, as well as those identified in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

     

    LAKELAND FINANCIAL CORPORATION
    SECOND QUARTER 2025 FINANCIAL HIGHLIGHTS
     
      Three Months Ended   Six Months Ended
    (Unaudited – Dollars in thousands, except per share data) June 30,   March 31,   June 30,   June 30,   June 30,
    END OF PERIOD BALANCES   2025       2025       2024       2025       2024  
    Assets $ 6,964,301     $ 6,851,178     $ 6,568,807     $ 6,964,301     $ 6,568,807  
    Investments   1,129,346       1,132,854       1,123,803       1,129,346       1,123,803  
    Loans   5,226,827       5,223,221       5,052,341       5,226,827       5,052,341  
    Allowance for Credit Losses   66,552       92,433       80,711       66,552       80,711  
    Deposits   6,176,833       5,960,194       5,763,537       6,176,833       5,763,537  
    Brokered Deposits   150,416       125,409       161,040       150,416       161,040  
    Core Deposits (1)   6,026,417       5,834,785       5,602,497       6,026,417       5,602,497  
    Total Equity   709,987       694,509       654,590       709,987       654,590  
    Goodwill Net of Deferred Tax Assets   3,803       3,803       3,803       3,803       3,803  
    Tangible Common Equity (2)   706,184       690,706       650,787       706,184       650,787  
    Adjusted Tangible Common
    Equity (2)
      866,758       854,585       820,534       866,758       820,534  
    AVERAGE BALANCES                  
    Total Assets $ 6,904,681     $ 6,762,970     $ 6,642,954     $ 6,834,217     $ 6,598,711  
    Earning Assets   6,570,607       6,430,804       6,295,281       6,501,092       6,256,105  
    Investments   1,125,597       1,136,404       1,118,776       1,130,970       1,138,639  
    Loans   5,229,646       5,185,918       5,034,851       5,207,903       5,002,935  
    Total Deposits   6,096,504       5,874,725       5,819,962       5,986,227       5,725,196  
    Interest Bearing Deposits   4,852,446       4,616,381       4,589,059       4,735,066       4,472,693  
    Interest Bearing Liabilities   4,886,943       4,716,465       4,666,136       4,802,175       4,599,136  
    Total Equity   696,976       696,053       638,999       696,517       642,003  
    INCOME STATEMENT DATA                  
    Net Interest Income $ 54,876     $ 52,875     $ 48,296     $ 107,751     $ 95,712  
    Net Interest Income-Fully Tax Equivalent   55,986       53,983       49,493       109,970       98,176  
    Provision for Credit Losses   3,000       6,800       8,480       9,800       10,000  
    Noninterest Income   11,486       10,928       20,439       22,414       33,051  
    Noninterest Expense   30,432       32,763       33,333       63,195       64,038  
    Net Income   26,966       20,085       22,549       47,051       45,950  
    Pretax Pre-Provision Earnings (2)   35,930       31,040       35,402       66,970       64,725  
    PER SHARE DATA                  
    Basic Net Income Per Common Share $ 1.05     $ 0.78     $ 0.88     $ 1.83     $ 1.79  
    Diluted Net Income Per
    Common Share
      1.04       0.78       0.87       1.82       1.78  
    Cash Dividends Declared Per Common Share   0.50       0.50       0.48       1.00       0.96  
    Dividend Payout   48.08 %     64.10 %     55.17 %     54.95 %     53.93 %
    Book Value Per Common Share (equity per share issued) $ 27.63     $ 26.99     $ 25.49     $ 27.63     $ 25.49  
    Tangible Book Value Per Common Share (2)   27.48       26.85       25.34       27.48       25.34  
    Market Value – High $ 62.39     $ 71.77     $ 66.62     $ 71.77     $ 73.22  
    Market Value – Low   50.00       58.24       57.59       50.00       57.59  
                       
      Three Months Ended   Six Months Ended
    (Unaudited – Dollars in thousands, except per share data) June 30,   March 31,   June 30,   June 30,   June 30,
    KEY RATIOS   2025       2025       2024       2025       2024  
    Basic Weighted Average Common Shares Outstanding   25,707,233       25,714,818       25,678,231       25,711,004       25,667,647  
    Diluted Weighted Average Common Shares Outstanding   25,776,205       25,802,865       25,742,871       25,782,817       25,746,773  
    Return on Average Assets   1.57 %     1.20 %     1.37 %     1.39 %     1.40 %
    Return on Average Total Equity   15.52       11.70       14.19       13.62       14.39  
    Average Equity to Average Assets   10.09       10.29       9.62       10.19       9.73  
    Net Interest Margin   3.42       3.40       3.17       3.41       3.16  
    Efficiency (Noninterest Expense/Net Interest Income
    plus Noninterest Income)
      45.86       51.35       48.49       48.55       49.73  
    Loans to Deposits   84.62       87.64       87.66       84.62       87.66  
    Investment Securities to Total Assets   16.22       16.54       17.11       16.22       17.11  
    Tier 1 Leverage (3)   12.21       12.30       11.98       12.21       11.98  
    Tier 1 Risk-Based Capital (3)   14.73       14.51       14.28       14.73       14.28  
    Common Equity Tier 1 (CET1) (3)   14.73       14.51       14.28       14.73       14.28  
    Total Capital (3)   15.86       15.77       15.53       15.86       15.53  
    Tangible Capital (2)   10.15       10.09       9.91       10.15       9.91  
    Adjusted Tangible Capital (2)   12.17       12.19       12.18       12.17       12.18  
    ASSET QUALITY                  
    Loans Past Due 30 – 89 Days $ 1,648     $ 4,288     $ 1,615     $ 1,648     $ 1,615  
    Loans Past Due 90 Days or More   7       7       26       7       26  
    Nonaccrual Loans   30,627       57,392       57,124       30,627       57,124  
    Nonperforming Loans   30,634       57,399       57,150       30,634       57,150  
    Other Real Estate Owned   284       284       384       284       384  
    Other Nonperforming Assets   183       193       90       183       90  
    Total Nonperforming Assets   31,101       57,876       57,624       31,101       57,624  
    Individually Analyzed Loans   52,069       81,346       78,533       52,069       78,533  
    Non-Individually Analyzed Watch List Loans   139,548       134,218       189,726       139,548       189,726  
    Total Individually Analyzed and Watch List Loans   191,617       215,564       268,259       191,617       268,259  
    Gross Charge Offs   29,111       508       1,076       29,619       1,580  
    Recoveries   230       181       127       411       319  
    Net Charge Offs/(Recoveries)   28,881       327       949       29,208       1,261  
    Net Charge Offs/(Recoveries) to Average Loans   2.22 %     0.03 %     0.08 %     1.13 %     0.05 %
    Credit Loss Reserve to Loans   1.27       1.77       1.60       1.27       1.60  
    Credit Loss Reserve to Nonperforming Loans   217.25       161.04       141.23       217.25       141.23  
    Nonperforming Loans to Loans   0.59       1.10       1.13       0.59       1.13  
    Nonperforming Assets to Assets   0.45       0.84       0.88       0.45       0.88  
    Total Individually Analyzed and Watch List Loans to Total Loans   3.67 %     4.13 %     5.31 %     3.67 %     5.31 %
                       
                       
      Three Months Ended   Six Months Ended
    (Unaudited – Dollars in thousands, except per share data) June 30,   March 31,   June 30,   June 30,   June 30
    KEY RATIOS   2025       2025       2024       2025       2024,  
    OTHER DATA                  
    Full Time Equivalent Employees   675       647       653       675       653  
    Offices   54       54       53       54       53  
    (1 ) Core deposits equals deposits less brokered deposits.
    (2 ) Non-GAAP financial measure – see “Reconciliation of Non-GAAP Financial Measures”.
    (3 ) Capital ratios for June 30, 2025 are preliminary until the Call Report is filed.
       
    CONSOLIDATED BALANCE SHEETS (in thousands, except share data)      
    ​ June 30,
    2025
      December 31,
    2024
    ​ (Unaudited)   ​
    ASSETS      
    Cash and due from banks $ 97,413     $ 71,733  
    Short-term investments   212,767       96,472  
    Total cash and cash equivalents   310,180       168,205  
    Securities available-for-sale, at fair value   996,957       991,426  
    Securities held-to-maturity, at amortized cost (fair value of $107,979 and $113,107, respectively)   132,389       131,568  
    Real estate mortgage loans held-for-sale   1,637       1,700  
    Loans, net of allowance for credit losses of $66,552 and $85,960   5,160,275       5,031,988  
    Land, premises and equipment, net   61,449       60,489  
    Bank owned life insurance   127,399       113,320  
    Federal Reserve and Federal Home Loan Bank stock   21,420       21,420  
    Accrued interest receivable   29,109       28,446  
    Goodwill   4,970       4,970  
    Other assets   118,516       124,842  
    Total assets $ 6,964,301     $ 6,678,374  
    ​      
    LIABILITIES      
    Noninterest bearing deposits $ 1,261,740     $ 1,297,456  
    Interest bearing deposits   4,915,093       4,603,510  
    Total deposits   6,176,833       5,900,966  
           
    Borrowings      
    Federal Home Loan Bank advance   1,200       0  
    Other borrowings   5,000     0  
    Total borrowings   6,200       0  
           
    Accrued interest payable   9,996       15,117  
    Other liabilities   61,285       78,380  
    Total liabilities   6,254,314       5,994,463  
    ​      
    STOCKHOLDERS’ EQUITY      
    Common stock: 90,000,000 shares authorized, no par value      
    26,016,494 shares issued and 25,525,105 outstanding as of June 30, 2025      
    25,978,831 shares issued and 25,509,592 outstanding as of December 31, 2024   130,664       129,664  
    Retained earnings   757,739       736,412  
    Accumulated other comprehensive income (loss)   (161,121 )     (166,500 )
    Treasury stock, at cost (491,389 shares and 469,239 shares as of June 30, 2025 and December 31, 2024, respectively)   (17,384 )     (15,754 )
    Total stockholders’ equity   709,898       683,822  
    Noncontrolling interest   89       89  
    Total equity   709,987       683,911  
    Total liabilities and equity $ 6,964,301     $ 6,678,374  
     
    CONSOLIDATED STATEMENTS OF INCOME (unaudited – in thousands, except share and per share data)
    ​ Three Months Ended June 30,   Six Months Ended June 30,  
    ​   2025     2024     2025     2024    
    NET INTEREST INCOME                
    Interest and fees on loans                
    Taxable $ 84,418   $ 84,226   $ 166,158   $ 166,268    
    Tax exempt   291     632     583     1,532    
    Interest and dividends on securities                
    Taxable   3,457     3,104     6,846     6,143    
    Tax exempt   3,917     3,932     7,827     7,879    
    Other interest income   2,302     1,842     3,426     2,948    
    Total interest income   94,385     93,736     184,840     184,770    
    ​ ​   ​   ​   ​  
    Interest on deposits   39,111     44,363     75,569     85,527    
    Interest on short-term borrowings   398     1,077     1,520     3,531    
    Total interest expense   39,509     45,440     77,089     89,058    
    ​ ​   ​   ​   ​  
    NET INTEREST INCOME   54,876     48,296     107,751     95,712    
    ​ ​   ​   ​   ​  
    Provision for credit losses   3,000     8,480     9,800     10,000    
    ​ ​   ​   ​   ​  
    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES   51,876     39,816     97,951     85,712    
    ​ ​   ​   ​   ​  
    NONINTEREST INCOME                
    Wealth advisory fees   2,667     2,597     5,534     5,052    
    Investment brokerage fees   550     478     1,002     1,000    
    Service charges on deposit accounts   2,827     2,806     5,601     5,497    
    Loan and service fees   3,006     3,048     5,890     5,900    
    Merchant and interchange fee income   854     892     1,676     1,755    
    Bank owned life insurance income   1,040     890     1,362     1,926    
    Interest rate swap fee income   20     0     20     0    
    Mortgage banking income (loss)   124     23     73     75    
    Net securities gains (losses)   0     0     0     (46 )  
    Net gain on Visa shares   0     9,011     0     9,011    
    Other income   398     694     1,256     2,881    
    Total noninterest income   11,486     20,439     22,414     33,051    
    ​ ​   ​   ​   ​  
    NONINTEREST EXPENSE                
    Salaries and employee benefits   17,096     16,158     34,998     32,991    
    Net occupancy expense   1,747     1,698     3,727     3,438    
    Equipment costs   1,437     1,343     2,819     2,755    
    Data processing fees and supplies   4,152     3,812     8,417     7,651    
    Corporate and business development   1,160     1,265     2,566     2,646    
    FDIC insurance and other regulatory fees   839     816     1,639     1,605    
    Professional fees   1,706     2,123     4,086     4,586    
    Other expense   2,295     6,118     4,943     8,366    
    Total noninterest expense   30,432     33,333     63,195     64,038    
    ​ ​   ​   ​   ​  
    INCOME BEFORE INCOME TAX EXPENSE   32,930     26,922     57,170     54,725    
    Income tax expense   5,964     4,373     10,119     8,775    
    NET INCOME $ 26,966   $ 22,549   $ 47,051   $ 45,950    
    ​ ​   ​   ​   ​  
    BASIC WEIGHTED AVERAGE COMMON SHARES   25,707,233     25,678,231     25,711,004     25,667,647    
    ​ ​   ​   ​   ​  
    BASIC EARNINGS PER COMMON SHARE $ 1.05   $ 0.88   $ 1.83   $ 1.79    
    ​                
    DILUTED WEIGHTED AVERAGE COMMON SHARES   25,776,205     25,742,871     25,782,817     25,746,773    
    ​                
    DILUTED EARNINGS PER COMMON SHARE $ 1.04   $ 0.87   $ 1.82   $ 1.78    
     

     

    LAKELAND FINANCIAL CORPORATION
    LOAN DETAIL
    (unaudited, in thousands)
     
      June 30,
    2025
      March 31,
    2025
      June 30,
    2024
    Commercial and industrial loans:                      
    Working capital lines of credit loans $ 717,484     13.7 %   $ 716,522     13.7 %   $ 697,754     13.8 %
    Non-working capital loans   776,278     14.9       807,048     15.5       828,523     16.4  
    Total commercial and industrial loans   1,493,762     28.6       1,523,570     29.2       1,526,277     30.2  
              ​            
    Commercial real estate and multi-family residential loans:                      
    Construction and land development loans   552,998     10.6       623,905     12.0       658,345     13.0  
    Owner occupied loans   780,285     14.9       804,933     15.4       830,018     16.4  
    Nonowner occupied loans   869,196     16.6       852,033     16.3       762,365     15.1  
    Multifamily loans   477,910     9.1       339,946     6.5       252,652     5.0  
    Total commercial real estate and multi-family residential loans   2,680,389     51.2       2,620,817     50.2       2,503,380     49.5  
              ​            
    Agri-business and agricultural loans:                      
    Loans secured by farmland   150,934     2.9       156,112     3.0       161,410     3.2  
    Loans for agricultural production   188,501     3.6       227,659     4.3       199,654     4.0  
    Total agri-business and agricultural loans   339,435     6.5       383,771     7.3       361,064     7.2  
              ​            
    Other commercial loans   95,442     1.8       94,927     1.8       96,703     1.9  
    Total commercial loans   4,609,028     88.1       4,623,085     88.5       4,487,424     88.8  
              ​            
    Consumer 1-4 family mortgage loans:                      
    Closed end first mortgage loans   273,287     5.2       265,855     5.1       259,094     5.1  
    Open end and junior lien loans   226,114     4.4       217,981     4.2       197,861     3.9  
    Residential construction and land development loans   16,667     0.3       16,359     0.3       12,952     0.3  
    Total consumer 1-4 family mortgage loans   516,068     9.9       500,195     9.6       469,907     9.3  
      ​       ​            
    Other consumer loans   103,880     2.0       102,254     1.9       97,895     1.9  
    Total consumer loans   619,948     11.9       602,449     11.5       567,802     11.2  
    Subtotal   5,228,976     100.0 %     5,225,534     100.0 %     5,055,226     100.0 %
    Less:  Allowance for credit losses   (66,552 )         (92,433 )   ​     (80,711 )   ​
    Net deferred loan fees   (2,149 )         (2,313 )   ​     (2,885 )   ​
    Loans, net $ 5,160,275         $ 5,130,788     ​   $ 4,971,630     ​
     

     

    LAKELAND FINANCIAL CORPORATION
    DEPOSITS AND BORROWINGS
    (unaudited, in thousands)
     
      June 30,
    2025
      March 31,
    2025
      June 30,
    2024
    Noninterest bearing demand deposits $ 1,261,740   $ 1,296,907   $ 1,212,989
    Savings and transaction accounts:          
    Savings deposits   283,976     293,768     283,809
    Interest bearing demand deposits   3,841,703     3,554,310     3,274,179
    Time deposits:          
    Deposits of $100,000 or more   584,165     602,577     776,314
    Other time deposits   205,249     212,632     216,246
    Total deposits $ 6,176,833   $ 5,960,194   $ 5,763,537
    FHLB advances and other borrowings   6,200     108,200     55,000
    Total funding sources $ 6,183,033   $ 6,068,394   $ 5,818,537
     

     

    LAKELAND FINANCIAL CORPORATION
    AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS
    (UNAUDITED)
     
        Three Months Ended June 30, 2025   Three Months Ended March 31, 2025   Three Months Ended June 30, 2024
    (fully tax equivalent basis, dollars in thousands)   Average Balance   Interest Income   Yield (1)/
    Rate
      Average Balance   Interest Income   Yield (1)/
    Rate
      Average Balance   Interest Income   Yield (1)/
    Rate
    Earning Assets                                    
    Loans:                                    
    Taxable (2)(3)   $ 5,204,006     $ 84,418   6.51 %   $ 5,160,031     $ 81,740   6.42 %   $ 4,993,270     $ 84,226   6.78 %
    Tax exempt (1)     25,640       359   5.62       25,887       361   5.66       41,581       783   7.57  
    Investments: (1)                                    
    Securities     1,125,597       8,416   3.00       1,136,404       8,338   2.98       1,118,776       8,082   2.91  
    Short-term investments     2,832       28   3.97       2,964       28   3.83       2,836       35   4.96  
    Interest bearing deposits     212,532       2,274   4.29       105,518       1,096   4.21       138,818       1,807   5.24  
    Total earning assets   $ 6,570,607     $ 95,495   5.83 %   $ 6,430,804     $ 91,563   5.77 %   $ 6,295,281     $ 94,933   6.07 %
    Less:  Allowance for credit losses     (93,644 )             (87,477 )             (74,166 )        
    Nonearning Assets                                    
    Cash and due from banks     66,713               71,004               64,518          
    Premises and equipment     61,280               60,523               58,702          
    Other nonearning assets     299,725               288,116               298,619          
    Total assets   $ 6,904,681             $ 6,762,970             $ 6,642,954          
                                         
    Interest Bearing Liabilities                                    
    Savings deposits   $ 285,944     $ 43   0.06 %   $ 283,888     $ 42   0.06 %   $ 289,107     $ 48   0.07 %
    Interest bearing checking accounts     3,767,903       31,499   3.35       3,486,447       28,075   3.27       3,275,502       33,323   4.09  
    Time deposits:                                    
    In denominations under $100,000     208,770       1,745   3.35       212,934       1,832   3.49       217,146       1,871   3.47  
    In denominations over $100,000     589,829       5,824   3.96       633,112       6,509   4.17       807,304       9,121   4.54  
    Other short-term borrowings     33,297       398   4.79       99,830       1,122   4.56       77,077       1,077   5.62  
    Long-term borrowings     1,200       0   0.00       254       0   0.00       0       0   0.00  
    Total interest bearing liabilities   $ 4,886,943     $ 39,509   3.24 %   $ 4,716,465     $ 37,580   3.23 %   $ 4,666,136     $ 45,440   3.92 %
    Noninterest Bearing Liabilities                                    
    Demand deposits     1,244,058               1,258,344               1,230,903          
    Other liabilities     76,704               92,108               106,916          
    Stockholders’ Equity     696,976               696,053               638,999          
    Total liabilities and stockholders’ equity   $ 6,904,681             $ 6,762,970             $ 6,642,954          
    Interest Margin Recap                                    
    Interest income/average earning assets         95,495   5.83 %         91,563   5.77 %         94,933   6.07 %
    Interest expense/average earning assets         39,509   2.41           37,580   2.37           45,440   2.90  
    Net interest income and margin       $ 55,986   3.42 %       $ 53,983   3.40 %       $ 49,493   3.17 %
    (1 ) Tax exempt income was converted to a fully taxable equivalent basis at a 21 percent tax rate. The tax equivalent rate for tax exempt loans and tax-exempt securities acquired after January 1, 1983, included the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) adjustment applicable to nondeductible interest expenses. Taxable equivalent basis adjustments were $1.11 million, $1.11 million and $1.20 million in the three-month periods ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively.
    (2 ) Loan fees, which are immaterial in relation to total taxable loan interest income for the three-month periods ended June 30, 2025, March 31, 2025, and June 30, 2024, are included as taxable loan interest income.
    (3 ) Nonaccrual loans are included in the average balance of taxable loans.
       

    Reconciliation of Non-GAAP Financial Measures

    Tangible common equity, adjusted tangible common equity, tangible assets, adjusted tangible assets, tangible book value per common share, tangible common equity to tangible assets, adjusted tangible common equity to adjusted tangible assets, and pretax pre-provision earnings are non-GAAP financial measures calculated based on GAAP amounts. Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets from the calculation of equity, net of deferred tax. Tangible assets are calculated by excluding the balance of goodwill and other intangible assets from the calculation of total assets, net of deferred tax. Adjusted tangible assets and adjusted tangible common equity remove the fair market value adjustment impact of the available-for-sale investment securities portfolio in accumulated other comprehensive income (loss) (“AOCI”). Tangible book value per common share is calculated by dividing tangible common equity by the number of shares outstanding less true treasury stock. Pretax pre-provision earnings is calculated by adding net interest income to noninterest income and subtracting noninterest expense. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. However, management considers these measures of the company’s value meaningful to understanding of the company’s financial information and performance.

    A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

      Three Months Ended   Six Months Ended
      Jun. 30, 2025   Mar. 31, 2025   Jun. 30, 2024   Jun. 30, 2025   Jun. 30, 2024
    Total Equity $ 709,987     $ 694,509     $ 654,590     $ 709,987     $ 654,590  
    Less: Goodwill   (4,970 )     (4,970 )     (4,970 )     (4,970 )     (4,970 )
    Plus: DTA Related to Goodwill   1,167       1,167       1,167       1,167       1,167  
    Tangible Common Equity   706,184       690,706       650,787       706,184       650,787  
    Market Value Adjustment in AOCI   160,574       163,879       169,747       160,574       169,747  
    Adjusted Tangible Common Equity   866,758       854,585       820,534       866,758       820,534  
                       
    Assets $ 6,964,301     $ 6,851,178     $ 6,568,807     $ 6,964,301     $ 6,568,807  
    Less: Goodwill   (4,970 )     (4,970 )     (4,970 )     (4,970 )     (4,970 )
    Plus: DTA Related to Goodwill   1,167       1,167       1,167       1,167       1,167  
    Tangible Assets   6,960,498       6,847,375       6,565,004       6,960,498       6,565,004  
    Market Value Adjustment in AOCI   160,574       163,879       169,747       160,574       169,747  
    Adjusted Tangible Assets   7,121,072       7,011,254       6,734,751       7,121,072       6,734,751  
                       
    Ending Common Shares Issued   25,697,093       25,727,393       25,679,066       25,697,093       25,679,066  
                       
    Tangible Book Value Per Common Share $ 27.48     $ 26.85     $ 25.34     $ 27.48     $ 25.34  
                       
    Tangible Common Equity/Tangible Assets   10.15 %     10.09 %     9.91 %     10.15 %     9.91 %
    Adjusted Tangible Common Equity/Adjusted Tangible Assets   12.17 %     12.19 %     12.18 %     12.17 %     12.18 %
                       
    Net Interest Income $ 54,876     $ 52,875     $ 48,296     $ 107,751     $ 95,712  
    Plus:  Noninterest Income   11,486       10,928       20,439       22,414       33,051  
    Minus:  Noninterest Expense   (30,432 )     (32,763 )     (33,333 )     (63,195 )     (64,038 )
    Pretax Pre-Provision Earnings $ 35,930     $ 31,040     $ 35,402     $ 66,970     $ 64,725  
     

    Adjusted core noninterest income, adjusted core noninterest expense, adjusted earnings before income taxes, core operational profitability, core operational diluted earnings per common share and adjusted core efficiency ratio are non-GAAP financial measures calculated based on GAAP amounts. These adjusted amounts are calculated by excluding the impact of the net gain on Visa shares, legal accrual and 2023 wire fraud loss insurance recoveries for the periods presented below. Management considers these measures of financial performance to be meaningful to understanding the company’s core business performance for these periods.

    A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

      Three Months Ended   Six Months Ended
      Jun. 30, 2025   Mar. 31, 2025   Jun. 30, 2024   Jun. 30, 2025   Jun. 30, 2024
    Noninterest Income $ 11,486     $ 10,928     $ 20,439     $ 22,414     $ 33,051  
    Less: Net Gain on Visa Shares   0       0       (9,011 )     0       (9,011 )
    Less: Insurance Recovery   0       0       0       0       (1,000 )
    Adjusted Core Noninterest Income $ 11,486     $ 10,928     $ 11,428     $ 22,414     $ 23,040  
                       
    Noninterest Expense $ 30,432     $ 32,763     $ 33,333     $ 63,195     $ 64,038  
    Less: Legal Accrual   0       0       (4,537 )     0       (4,537 )
    Adjusted Core Noninterest Expense $ 30,432     $ 32,763     $ 28,796     $ 63,195     $ 59,501  
                       
    Earnings Before Income Taxes $ 32,930     $ 24,240     $ 26,922     $ 57,170     $ 54,725  
    Adjusted Core Impact:                  
    Noninterest Income   0       0       (9,011 )     0       (10,011 )
    Noninterest Expense   0       0       4,537       0       4,537  
    Total Adjusted Core Impact   0       0       (4,474 )     0       (5,474 )
    Adjusted Earnings Before Income Taxes   32,930       24,240       22,448       57,170       49,251  
    Tax Effect   (5,964 )     (4,155 )     (3,261 )     (10,119 )     (7,414 )
    Core Operational Profitability (1) $ 26,966     $ 20,085     $ 19,187     $ 47,051     $ 41,837  
                       
    Diluted Earnings Per Common Share $ 1.04     $ 0.78     $ 0.87     $ 1.82     $ 1.78  
    Impact of Adjusted Core Items   0.00       0.00       (0.13 )     0.00       (0.16 )
    Core Operational Diluted Earnings Per Common Share $ 1.04     $ 0.78     $ 0.74     $ 1.82     $ 1.62  
                       
    Adjusted Core Efficiency Ratio   45.86 %     51.35 %     48.22 %     48.55 %     50.11 %
    (1 ) Core operational profitability was $3.4 million lower than reported net income for the three months ended June 30, 2024 and $4.1 million lower for the six months ended June 30, 2024.
       


    Contact
    Lisa M. O’Neill
    Executive Vice President and Chief Financial Officer
    (574) 267-9125
    lisa.oneill@lakecitybank.com

    The MIL Network –

    July 25, 2025
  • MIL-OSI: Webcast details for Orrön Energy’s Q2 presentation

    Source: GlobeNewswire (MIL-OSI)

    Orrön Energy AB (“Orrön Energy”) will publish its financial report for the second quarter 2025 on Wednesday, 6 August 2025 at 07:30 CEST, followed by a webcast at 14:00 CEST.

    Listen to Daniel Fitzgerald, CEO and Espen Hennie, CFO commenting on the report and describing the latest developments in Orrön Energy at a webcast on 6 August 2025 at 14:00 CEST, followed by a question-and-answer session.

    Registration for the webcast presentation is available on the website and the below link:
    https://orron-energy.events.inderes.com/q2-report-2025

    For further information, please contact:

    Robert Eriksson
    Corporate Affairs and Investor Relations
    Tel: +46 701 11 26 15
    robert.eriksson@orron.com

    Jenny Sandström
    Communications Lead
    Tel: +41 79 431 63 68
    jenny.sandstrom@orron.com

    Orrön Energy is an independent, publicly listed (Nasdaq Stockholm: “ORRON”) renewable energy company within the Lundin Group of Companies. Orrön Energy’s core portfolio consists of high quality, cash flow generating assets in the Nordics, coupled with greenfield growth opportunities in the Nordics, the UK, Germany and France. With significant financial capacity to fund further growth and acquisitions, and backed by a major shareholder, management and Board with a proven track record of investing into, leading and growing highly successful businesses, Orrön Energy is in a unique position to create shareholder value through the energy transition.

    Forward-looking statements
    Statements in this press release relating to any future status or circumstances, including statements regarding future performance, growth and other trend projections, are forward-looking statements. These statements may generally, but not always, be identified by the use of words such as “anticipate”, “believe”, “expect”, “intend”, “plan”, “seek”, “will”, “would” or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that could occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to several factors, many of which are outside the company’s control. Any forward-looking statements in this press release speak only as of the date on which the statements are made and the company has no obligation (and undertakes no obligation) to update or revise any of them, whether as a result of new information, future events or otherwise.

    Attachment

    • Orrön Energy – Press Release -Webcast details Q2 Results – 25072025en

    The MIL Network –

    July 25, 2025
  • MIL-OSI: COFICERT : ORGANIZATION OF AN INTERNATIONAL CEREMONY FOR THE AWARDING OF FINANCIAL AND NON-FINANCIAL COMPLIANCE CERTIFICATES AT EURONEXT

    Source: GlobeNewswire (MIL-OSI)

                 

    ORGANIZATION OF AN INTERNATIONAL CEREMONY FOR THE AWARDING OF FINANCIAL AND NON-FINANCIAL COMPLIANCE CERTIFICATES AT EURONEXT

    On Tuesday, June 25, COFICERT, in partnership with IGSF, hosted an official ceremony to award financial and non-financial compliance certificates at the Euronext headquarters, located at the Paris Stock Exchange.

    Several delegations from institutions known for their dedication to compliance and responsible finance, representing almost fifteen nations, came together for this event. A number of organisations received compliance certificates in line with globally accepted standards, such as the AML 30001® Standard (AML/CFT 2025 version), which is focused on counter-terrorism financing and anti-money laundering, and the MSI 20000® Standard, which is focused on governance and financial quality. The ISO 37001® Standard, which focusses on anti-corruption, and the ESG 1000® Standard, which is dedicated to governance and quality of non-financial governance structures, were also emphasised during the event.

    The ceremony was attended by Véronique de la Bachelerie, President of IGSF, Jérôme Gacoin, President of COFICERT, and Souheil Skander, CEO of COFICERT. It also gathered representatives from the European Commission, the World Bank, the OECD, and the EU Global Facility on AML/CFT, reflecting the growing importance attached to certification to these standards and international cooperation between Europe, Africa, and the Middle East in these areas. This convergence around a shared normative framework demonstrates a collective will to foster greater transparency and a standardized language, serving as a catalyst for universal compliance.

    The companies certified during this ceremony belong to strategic sectors, placing them in a position to drive change within their respective countries or regions, thereby fostering the widespread adoption of best practices and contributing to enhanced integrity across the financial system. Notably, the companies that made the trip to Paris are among the leading financial and economic players on the African continent. West and Central Africa were represented by BSIC and NSIA Bank (Benin, Guinea, Togo, Senegal), as well as BGFIBank Group (Côte d’Ivoire, Gabon, Cameroon, DRC), all of which hold prominent regional positions. North Africa was well represented by Tunisia, Morocco, and Egypt, with leading institutions such as Bank of Tunisia, Tunisie Leasing & Factoring, Tunisie Valeurs, Hannibal Lease, BSB TOYOTA, Attawfiq Microfinance, and Alamana Microfinance. The diversity of these profiles illustrates the inclusive and structuring purpose of the MSI 20000® Standard, uniting key transformational actors at a regional level and compliance drivers at an international level.

    The organization of this event, along with the presence of official delegations and international organizations, underscores the growing importance attributed to financial and non-financial compliance as a pillar of performance, responsibility, and ultimately, value creation.

    Ms. Véronique de la Bachelerie, President of IGSF, emphasized: “The financial and non-financial certifications standardized by IGSF and ISO provide a guarantee of confidence in the financial sustainability of a company (MSI 20000), a guarantee of confidence in the quality of its governance and its risk management policies regarding financial crime through anti-money laundering and counter-terrorism financing (AML 30001), the fight against corruption (ISO 37001), and finally a guarantee of confidence in its ability to address all environmental and social challenges through the quality of its non-financial governance. More broadly, this contributes to the company’s sustainability – that is the value proposition of ESG 1000, in support of sustainable finance.”

    Mr. Jérôme Gacoin, President of COFICERT, stated: “We have just experienced a moment that is both symbolic and foundational. Symbolic, because the adoption of these standards reflects the commitment of companies and institutions to comply with demanding, internationally recognized standards. Foundational, because it contributes to a dynamic of trust, transparency, and responsibility at both the European and global levels. Furthermore, the Paris Stock Exchange, a crossroads of markets and investments, perfectly embodies COFICERT’s mission: to raise standards, secure economic relationships, and recognize the value of committed organizations.”

    Mr. Souheil Skander, CEO of COFICERT, added: “The companies certified to the MSI 20000, ISO 37001, and AML 30001 standards have successfully turned what was once a constraint into an opportunity and a powerful lever of attractiveness and value creation. Certifications today serve as true benchmarks – they are closely observed and highly valued. They offer undeniable competitive and differentiation advantages, effectively acting as a qualitative filter. These certifications have become tools of assurance, opportunity, and synergy for business development.”

    IGSF (International Group for Sustainability Finance) is a non-profit NGO based in Luxembourg, whose activities aim to channel and organise international efforts in financial and extra-financial standard-setting. As a standard-setting body, IGSF operates along two main axes: first, the technical organization of standards related to financial and extra-financial governance; and second, the dissemination of standards and best practices. The issues addressed by IGSF include financial governance, the fight against financial crime and the social responsibility of companies and organisations of all types.

    COFICERT is a French certification body specializing in financial and non-financial certifications, operating in nearly 50 countries across 3 continents. COFICERT is recognized for its expertise in governance, anti-financial crime, and sustainable finance. It certifies organizations in areas related to sound financial governance (MSI 20000), extra-financial governance (ESG 1000), anti-money laundering and counter-terrorism financing (AML 30001), and anti-corruption (ISO 37001).

    Attachment

    • EN_CP_COFICERT-EURONEXT-IGSF_VO

    The MIL Network –

    July 25, 2025
  • MIL-OSI United Kingdom: Statement on Australia-UK Ministerial Consultations (AUKMIN) July 2025

    Source: United Kingdom – Executive Government & Departments

    Press release

    Statement on Australia-UK Ministerial Consultations (AUKMIN) July 2025

    Joint statement from UK and Australia on the Australia-UK Ministerial Consultations (AUKMIN) July 2025

    1 . On 25 July 2025, the Minister for Foreign Affairs Senator the Hon Penny Wong and the Deputy Prime Minister and Minister for Defence the Hon Richard Marles MP hosted the Secretary of State for Foreign, Commonwealth and Development Affairs the Rt Hon David Lammy MP and the Secretary of State for Defence the Rt Hon John Healey MP for the Australia-UK Ministerial Consultations (AUKMIN) in Sydney.

    2 . Ministers noted the global security environment had become more dangerous and unpredictable since they last met in December 2024. They recognised the elevated importance of the enduring Australia-UK relationship in responding together to address these challenges.

    3 . Ministers agreed to significantly increase their cooperation to bolster Australia and the UK’s defence and national security, enhance economic security and mitigate and address the impacts of climate change. Ministers agreed on the enduring importance of the UK-Australia relationship in delivering economic growth to our peoples and globally.

    4 . Ministers underscored the role Australia and the UK play in upholding the rules, norms and institutions, including respect for universal human rights, that underpin global prosperity and security, and noted their deep, clear and longstanding commitment to the multilateral system. They committed to consider joint initiatives and advocacy on multilateral reform, including on the UN Secretary-General’s UN80 Initiative, to ensure the multilateral system is able to continue to deliver on critical core functions and mandates.

    Closer cooperation in the Indo-Pacific

    5 . Ministers reaffirmed that the security, resilience and prosperity of the Indo-Pacific and Euro-Atlantic regions are interconnected. They committed to continue to expand efforts to safeguard internationally agreed rules and norms and respect for sovereignty. Ministers agreed on the need to shape a world characterised by adherence to rules and norms, rather than power or coercion.

    6 . Ministers committed to further strengthen cooperation, bilaterally and with regional partners, to ensure a peaceful, stable and prosperous Indo-Pacific. Ministers agreed the UK and Australia’s enduring engagement in the Indo-Pacific was important to shaping a favourable strategic balance in the region.

    7 . Recognising the deteriorating geostrategic environment, Ministers emphasised the need for all countries to manage strategic competition responsibly, and the importance of dialogue and practical measures to reduce the risks of miscalculation, escalation and conflict.

    8 . Ministers reiterated their strong opposition to coercive or destabilising activities by China’s Coast Guard, naval vessels and maritime militia in the South China Sea, including sideswiping, water cannoning and close manoeuvres that have resulted in injuries, endangered lives and created risks of miscalculation and escalation. Ministers agreed to continue cooperating to support freedom of navigation and overflight in the region, including through participation in joint activities. They also reiterated their concern about the situation in the East China Sea.

    9 . Ministers emphasised the obligation of all states to adhere to international law, particularly the United Nations Convention on the Law of the Sea (UNCLOS), which provides the comprehensive legal framework for all activities in the ocean and seas. They agreed that maritime disputes must be resolved peacefully and in accordance with international law. Ministers reaffirmed that the 2016 South China Sea Arbitral Tribunal decision is final and binding on the parties. They emphasised any South China Sea Code of Conduct must be consistent with UNCLOS and not undermine the rights of States under international law.

    10 . Ministers agreed on the critical importance of peace and stability across the Taiwan Strait. They called for the peaceful resolution of cross-Strait issues through dialogue and not through the threat or use of force or coercion, and reaffirmed their opposition to unilateral changes to the status quo. They expressed concern at China’s destabilising military exercises around Taiwan. Ministers recognised that the international community benefits from the expertise of the people of Taiwan and committed to support Taiwan’s meaningful participation in international organisations where statehood is not a pre-requisite or as an observer or guest where it is. They reiterated their will to continue to deepen relations with Taiwan in the economic, trade, scientific, technological, and cultural fields.

    11 . Ministers strongly condemned the DPRK’s ongoing nuclear and ballistic missile programs and called for the complete, verifiable and irreversible denuclearisation of the DPRK. Ministers also expressed grave concern over the DPRK’s malicious cyber activity, including cryptocurrency theft and use of workers abroad to fund the DPRK’s unlawful weapons of mass destruction and ballistic missile programs.

    12 . Ministers emphasised their commitment to ASEAN centrality and recognised the critical role of ASEAN-led architecture in promoting peace, stability and prosperity in the region. They reaffirmed their ongoing commitment to support the practical implementation of the ASEAN Outlook on the Indo-Pacific.

    13 . Ministers underscored their commitment to deepen engagement on trade and investment diversification in Southeast Asia, including through Invested: Australia’s Southeast Asia Economic Strategy to 2040, Australia’s AUD 2 billion Southeast Asian Investment Financing Facility and dedicated Southeast Asia Investment Deal Teams, and the UK’s enhanced economic engagement. Ministers agreed to continue to strengthen coordination on clean energy transition in Southeast Asia and cooperation to bolster the region’s economic resilience through the mobilisation of private finance for climate objectives and green infrastructure, exploring collaboration on financing of low-carbon energy projects, and coordination of support to the ASEAN Power Grid.

    14 . Ministers reaffirmed their commitment to combat people smuggling, human trafficking and modern slavery in South and Southeast Asia, recognising that women and girls were most impacted, with a focus on trafficking into scam centres.

    15 . Ministers reiterated their commitment to the Indian Ocean Rim Association (IORA) as the premier ministerial-level forum in the Indian Ocean region. They agreed to continue collaboration on shared priorities in the Indian Ocean, including maritime security.

    16 . Ministers reiterated their serious concern at the deepening humanitarian crisis and escalating violence in Myanmar, compounded by the devastating earthquake in March. They strongly condemned the Myanmar regime’s violent oppression of its people, including the continued bombardment of civilian infrastructure. They called for all parties to prioritise the protection of civilians. They called on the regime to immediately cease violence, release those arbitrarily detained, allow safe and unimpeded humanitarian access, and return Myanmar to the path of inclusive democracy. Ministers reiterated their support for ASEAN’s efforts to resolve the crisis, including through the Five Point Consensus and the work of the ASEAN Special Envoy and UN Special Envoy. They welcomed ASEAN leaders’ recent call for an extended and expanded ceasefire, and inclusive national dialogue.

    17 . Ministers highlighted their commitment to continue to work with Pacific island countries through existing regional architecture, recognising the centrality of the Pacific Islands Forum. They agreed on the importance of pursuing Pacific priorities as set out in the 2050 Strategy for the Blue Pacific Continent. Ministers joined Pacific partner calls for increased access to climate finance, including further support to Pacific-owned and led mechanisms such as the Pacific Resilience Facility. Ministers welcomed ongoing reform of multilateral climate funds, including the Green Climate Fund (GCF), to provide better outcomes for Pacific island countries, noting encouraging progress made regarding the accreditation of Direct Access Entities and GCF regional presence. Ministers welcomed the UK’s continued contributions to Pacific security through their assistance in the removal of explosive remnants of war via their participation in the Australian-led Operation Render Safe. Ministers agreed to continue to work together to advance transparent and high-quality development in line with the Pacific Quality Infrastructure Principles (PQIPs), including through the Pacific Business Club. Ministers committed to work collaboratively on respective approaches to the Multilateral Development Banks (MDBs) to encourage reform consistent with the PQIPs. Ministers underscored our shared commitment to cyber coordination and capacity-building in the Pacific including through support to the inaugural Pacific Cyber Week in August 2025, a concept endorsed by the Pacific Islands Forum. Ministers emphasised the importance of sharing expertise and strengthening people-to-people links for a more cyber-resilient Pacific.

    Ambitious partners, facing global challenges together

    18 . Ministers unequivocally condemned Russia’s full-scale invasion of Ukraine and called on Russia to immediately withdraw its troops from Ukraine’s internationally recognised territory, and adhere fully to its obligations under international law, including in relation to the protection of civilians and treatment of prisoners of war. They reiterated their commitment to making sure that Ukraine gets the military and financial support it needs to defend itself in the fight now and agreed to step up action against Russia’s war machine. They emphasised the importance of taking further action against Russia’s shadow fleet, acknowledging the sanctions both countries had imposed in this regard. They also called on Russia to immediately cease their illegal deportation of Ukrainian children and reunify those already displaced with their families and guardians in Ukraine.

    19 . Ministers reiterated their deep concerns about the role of third countries in supporting Russia’s illegal war in Ukraine and the associated impact for the security of the Indo-Pacific. They called on China to prevent its companies from supplying dual-use components to Russia’s war effort, and exercise its influence with Russia to stop Moscow’s military aggression and enter negotiations to end the war in good faith. Ministers strongly condemned the DPRK’s support for Russia through the supply of munitions and deployment of DPRK personnel to enable Russia’s war efforts. Ministers called on Iran to cease all support for Russia’s illegal war against Ukraine and halt the transfer of ballistic missiles, UAVs and related technology.

    20 . Ministers agreed deepening military cooperation between Russia and the DPRK was a dangerous expansion of Russia’s war that has significant implications for security in the Indo-Pacific region. They expressed deep concerns about any political, military or economic support Russia may be providing to the DPRK’s nuclear and ballistic missile programs. Ministers affirmed their commitment to cooperating with international partners to strengthen efforts to hold the DPRK to account for violations and evasions of UN Council Resolutions (UNSCRs) including as founding members of the Multilateral Sanctions Monitoring Team (MSMT). Ministers acknowledged the release of the MSMT’s first report, which shines a light on unlawful DPRK-Russia military cooperation including arms transfers and Russia’s training of DPRK troops. Ministers urged all UN Member States to abide by their international obligations under the UNSCRs to implement sanctions, including the prohibition on the transfer or procurement of arms and related material to or from the DPRK.

    21 . Ministers called on Iran and Israel to adhere to the ceasefire and urged Iran to resume negotiations with the US. Ministers stated their determination that Iran must never develop a nuclear weapon. It is essential that Iran act promptly to return to full compliance with its safeguards obligations, cooperate fully with the International Atomic Energy Agency, and refrain from actions that would compromise efforts to address the security situation in the Middle East. Ministers condemned Iran’s unjust detention of foreign nationals and raised ongoing concerns over the human rights situation in Iran, particularly the escalation of the use of the death penalty as a political tool during the 12-day conflict, and the ongoing repression of women, girls and human rights defenders.

    22 . Ministers reiterated their support for Israel’s security and condemnation of Hamas’ horrific attacks on 7 October 2023, and underlined that Israeli actions must abide by international law. They called for an immediate ceasefire in Gaza, an end to Israeli blocks on aid, and the urgent and unconditional release of all hostages.

    23 . Ministers reaffirmed their conviction that an immediate and sustained ceasefire, alongside urgent steps towards a credible and irreversible pathway to a two-state solution are the only ways to deliver lasting peace, security and stability for Israelis, Palestinians and the wider region.

    24 . Ministers expressed grave concerns at the horrific and intolerable situation in Gaza. They continue to be appalled by the immense suffering of civilians, including Israel’s blocking of essential aid. They reiterated their call for Israel to immediately enable full, safe and unhindered access for UN agencies and humanitarian organisations to work independently and impartially to save lives, end the suffering and deliver dignity. Ministers also condemned settler violence in the West Bank, which has led to deaths of Palestinian civilians and the displacement of whole communities, and expressed opposition to any attempt to expand Israel’s illegal settlements.

    25 . Ministers expressed their deep concern for the safety and security of humanitarian personnel working in conflict settings around the world. They reaffirmed their commitment to finalise a Declaration for the Protection of Humanitarian Personnel and implement practical actions to ensure greater respect for and protection of humanitarian personnel. Ministers also called on all countries to endorse the Declaration once launched and to reaffirm their responsibility to uphold humanitarian principles and ensure respect for international humanitarian law. Ministers discussed the essential role of the humanitarian system which is critical to saving lives and livelihoods and avoiding mass displacement. Ministers noted that the core work of the UN, the Red Cross and Red Crescent Movement, and international, national and local humanitarian organisations, must be preserved. Ministers also reiterated support for the Emergency Relief Coordinator’s humanitarian reset.

    26 . Ministers committed to continue close collaboration on protecting and promoting gender equality internationally and countering rollback of rights, including through Australia-UK Strategic Dialogues on Gender Equality and progressing subsequent agreed commitments, such as the UK-Australia Gender Based Violence MoU.

    27 . Ministers reaffirmed their commitment to the full implementation of the Women Peace and Security (WPS) agenda. They acknowledged the 25th anniversary of UN Security Council Resolution 1325 and agreed to continue working together on implementing the WPS agenda, promoting the full, equal, meaningful and safe participation and leadership of women in conflict prevention, mediation and resolution, and working together on preventing conflict-related sexual violence and ending impunity.

    28 . Ministers reiterated their serious shared concerns about human rights violations in China, including the persecution and arbitrary detention of Uyghurs and Tibetans and the erosion of their religious, cultural, education and linguistic rights and freedoms. They expressed their deep concern with the transfer of a cohort of 40 Uyghurs to China against their will in February this year. Ministers shared grave concerns about the ongoing systemic erosion of Hong Kong’s autonomy, freedom, rights and democratic processes, including through the imposition of national security legislation and the prosecution of individuals such as British national Jimmy Lai and Australian citizen Gordon Ng. They shared their deep concern over the actions of Hong Kong authorities in targeting pro-democracy activists both within Hong Kong and overseas, including in Australia and the UK.

    29 . Ministers expressed growing concern over foreign information manipulation and interference (FIMI) and attempts to undermine security and democratic institutions and processes. They committed to working closely to analyse and respond to FIMI in order to raise the costs for malign actors, and build collective responses to FIMI, including in multilateral fora, and to promote resilient, healthy, open and fact-based environments.

    30 . Ministers acknowledged the unprecedented opportunities presented by critical and emerging technologies, including artificial intelligence, and the need to mitigate harms to build trust and confidence. They committed to collaborate on reciprocal information sharing on advanced AI capabilities and research, including between Australian agencies and the UK AI Security Institute, and working together to capture the opportunities of AI through the bilateral Cyber and Critical Technology Partnership.

    31 . Australia welcomed the UK’s new Laboratory for AI Security Research (LASR) and looked forward to exploring the opportunities for cooperation between our nations. The lab will pull together our world-class industry, academia and government agencies to ensure we reap the benefits of AI, while detecting, disrupting and deterring adversaries who would use it to undermine our national security and economic prosperity.

    32 . Ministers expressed shared concern over the persistent threat of malicious cyber activities impacting our societies and economies and agreed to continue to work closely on leveraging all tools of deterrence, including the use of attributions and sanctions to impose reputational, financial costs and travel bans on these actors. Our respective statements calling out the egregious activity of Russia’s GRU on Friday 18 July is a good example of such cooperation.

    33 . The UK is pleased to welcome Australia as a partner to the Common Good Cyber Fund, designed to strengthen cybersecurity for individuals most at risk from digital transnational repression. The Fund was first launched by the Prime Ministers of the UK and Canada under the G7 Rapid Response Mechanism. This participation underscores the growing commitment among G7 partners and like-minded nations to counter this threat and to deliver support to those who may be targeted.

    34 . Ministers reiterated their commitment to the Commonwealth as a unique platform for cross-regional dialogue and cooperation. They noted the importance of the Commonwealth in elevating the voices of small developing states on issues of global importance. Ministers took note of the important role of the Commonwealth Small States Offices in New York and Geneva, and committed to looking into options for expansion of this offer.

    Building shared defence capability

    35 . Ministers welcomed the continued growth in the bilateral defence relationship including the deployment of a British Carrier Strike Group to Australia for Exercise Talisman Sabre 2025 as part of an Indo-Pacific deployment. HMS Prince of Wales is the first UK aircraft carrier to visit Australia since 1997 and the deployment demonstrates the UK’s ongoing commitment to increase interoperability with Australia in the Indo-Pacific following significant contributions to Exercises Pitch Black and Predator’s Run in 2024. Ministers look forward to future opportunities in Australia and the wider region, including leveraging the Royal Navy’s (RN) offshore patrol vessels persistently deployed in the Indo-Pacific.

    36 . Ministers also welcomed the success of the inaugural Australia-UK Staff Level Meeting, with the second meeting set to take place in Australia later this year. This forum will continue to progress joint strategic and operational objectives, supporting the evolution of the bilateral relationship.

    37 . Ministers reaffirmed their enduring commitment to the generational AUKUS partnership, which is supporting security and stability in the Indo-Pacific and beyond, enhancing our collective deterrence against shared threats. This capability and technology sharing partnership will deliver military advantage to deter adversaries and promote regional security. The partnership also provides new pathways for innovation, boosting interoperability between partners and strengthening our combined defence industrial base.

    38 . Ministers announced their intent to sign a bilateral AUKUS treaty between the UK and Australia on Saturday, 26 July. The Treaty is a landmark agreement, which will underpin the next 50 years of UK-Australian bilateral cooperation under AUKUS Pillar I.

    39 . The Treaty will enable comprehensive cooperation on the design, build, operation, sustainment, and disposal of our SSN-AUKUS submarines; support the development of the personnel, workforce, infrastructure and regulatory systems required for Australia’s nuclear-powered submarine program; and realise increased port visits and the rotational presence of a UK Astute Class submarine at HMAS Stirling under Submarine Rotational Force – West.

    40 . The Treaty will enable our two countries to deliver a cutting-edge undersea capability through the SSN-AUKUS, in conjunction with our partner the US. Through working together we are supporting stability and security in the Indo-Pacific and beyond for decades to come, creating thousands of jobs, strengthening our economies and supply chains, building our respective submarine industrial bases and providing new opportunities for industry partners.

    41 . Ministers welcomed the significant progress made towards delivering Pillar I, including the entry into force of the AUKUS Naval Nuclear Propulsion Agreement between Australia, the UK and US on 17 January 2025 and the progress in design of the SSN-AUKUS submarines that will be operated by the RN and the Royal Australian Navy (RAN).

    42 . Ministers welcomed the UK’s June commitment, in its Strategic Defence Review, to build up to 12 SSN-A submarines, and continuous submarine production through investments in Barrow and Raynesway that will allow the UK to produce a submarine every 18 months, and recognised the UK’s additional investment to transform the UK’s submarine industrial base.

    43 . Ministers reaffirmed Australia and the UK’s strong and ongoing commitment to the delivery of the AUKUS Optimal Pathway. Reflecting the UK’s enduring dedication to this partnership, and long-standing engagement in the Indo-Pacific, Ministers welcomed the planned deployment of a RN submarine to undertake a port visit to Australia in 2026, delivering a varied programme of operational and engagement activities. The visit will support preparations for the establishment of the Submarine Rotational Force – West from as early as 2027, and represents another step forward on the shared path towards the delivery of SSN-AUKUS – ensuring our navies are ready, integrated, and capable of operating together to promote security and stability in the region.

    44 . Ministers underscored the importance of ensuring Australia’s acquisition of a conventionally-armed, nuclear-powered submarine capability sets the highest non-proliferation standard, and endorsed continued close engagement with the International Atomic Energy Agency.

    45 . Ministers affirmed their commitment under AUKUS Pillar II to continue to deliver tangible advanced capabilities to our defence forces and welcomed progress to date. By leveraging advanced technologies, our forces become more than the sum of their parts. They underlined the importance of Pillar II in streamlining capability acquisition and strengthening our defence innovation and industry sectors.

    46 . As part of Talisman Sabre 25, AUKUS partners participated in Maritime Big Play activities as well as groundbreaking AI and undersea warfare trials. The partners tested the remote operation of the UK’s Extra Large Unmanned Underwater Vehicle, Excalibur, controlled from Australia while operating in UK waters. The exercise once again accelerated interoperability between our forces and the accelerated integration of remote and autonomous systems.

    47 . Ministers noted the successful UK E-7A Seedcorn training program in Australia. The program, which is set to conclude in December 2025, was established to preserve a core of Airborne Early Warning and Control expertise within the Royal Air Force (RAF) and to lay a strong foundation for the introduction of the UK’s own Wedgetail aircraft. Thanks to the exceptional support of the Royal Australian Air Force (RAAF), since its inception in 2018, 30 RAF personnel – including pilots, mission crew, engineer officers, aircraft technicians, and operations specialists – have benefited from world-class training and exposure to the Wedgetail capability.

    48 . Ministers welcomed the upcoming deployment of a RAAF E-7A Wedgetail to Europe in August under Operation Kudu to help protect vital supply lines for humanitarian aid and military assistance into Ukraine. Delivering upon the vision for true interchangeability detailed in the Wedgetail Trilateral Joint Vision Statement in 2023, this deployment will see the Wedgetail jointly crewed by Australian and British service members in a live operational setting.  Ministers also welcomed Australia’s decision to extend support for training Ukrainian personnel under Operation Interflex, through Operation Kudu, to the end of 2026. Australia and the UK will also continue to work closely together to share insights and observations from the conflict.

    49 . Ministers reiterated their nations’ continued investment in the Five Power Defence Arrangements (FPDA) as a unique multilateral arrangement that plays a constructive role in building habits of cooperation and enhancing the warfighting capabilities of its members. They look forward to Exercise Bersama Lima 2025 which will feature high-end warfighting serials and next-generation assets such as Australia’s F-35s and the UK’s Carrier Strike Group.

    50 . Ministers affirmed their shared ambition to conduct a bilateral defence industry dialogue at both the Senior Official and Ministerial levels, providing a forum to deepen defence industry collaboration, enhance joint capability development, and cooperate on procurement reform to ensure improved efficiency in capability acquisition and sustainment.

    51 . Ministers agreed to deepen cooperation on using Active Electronically Scanned Array (AESA) radar technology in both nations. This includes exploring the potential of using Australian AESA radar technologies for UK integrated air and missile defence applications. They agreed to undertake a series of targeted risk reduction activities in the near future to inform future decisions.”

    52 . Ministers agreed to progress personnel exchanges that support the future combat effectiveness of the Australian Hunter Class and British Type 26 Frigates. To support the introduction of these platforms into service, the RAN and RN will undertake a series of maritime platform familiarisation activities that enable our people to gain experience in critical capabilities, including underwater and above water weapon systems, primary acoustical intelligence analysis, and overall signature management.

    53 . Ministers agreed to strengthen their sovereign defence industries through closer collaboration between the UK’s Complex Weapons Pipeline and Australia’s Guided Weapons and Explosive Ordnance Enterprise. As a first step the Ministers announced a collaborative effort to develop modular, low cost components for next-generation weapon systems.

    54 . Ministers acknowledged the shared legacy and the contribution of veterans to the bilateral relationship. They reaffirmed their commitment to identify avenues for closer collaboration on improving veterans’ health and transition services.

    Partnering on trade, climate and energy

    55 . Ministers agreed to work closely to safeguard and strengthen the role that free and fair trade and the rules-based multilateral trading system plays in economic prosperity and building resilience against economic shocks.

    56 . Ministers reaffirmed the importance of the rules-based multilateral trading system, with the World Trade Organization (WTO) at its core, to economic security and prosperity. Ministers agreed to deepen cooperation to reform and reposition the Organization, and the broader global trading system, to meet the trade challenges of the new economic and geopolitical environment. Ministers agreed to continue working together to overcome blockages in multilateral rulemaking, including by working in smaller and more agile plurilateral groupings to address contemporary challenges, such as non-market policies and practices, which could complement ongoing multilateral efforts. They welcomed cooperation on plurilateral rulemaking, including efforts to have the E-Commerce Agreement incorporated into WTO architecture and brought into force as soon as possible. They reaffirmed the importance of restoring a fully-functioning dispute settlement system as soon as possible, welcoming the UK’s decision to join the Multi-Party Interim Appeal Arbitration Arrangement (MPIA) while our countries work to fix the system.

    57 . Ministers welcomed the entry into force of the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in December 2024 and welcomed Australia as 2025 Chair. Ministers affirmed the need to work cooperatively together to ensure the CPTPP remains high standard and fit-for-purpose in addressing evolving challenges through continued progress on the CPTPP General Review and expansion of the membership. They looked forward to planned CPTPP trade and investment dialogues with the EU and with ASEAN.

    58 . Ministers welcomed the second meeting of the Australia-United Kingdom Free Trade Agreement (A-UKFTA) Joint Committee on 3 June which celebrated the strong and growing trade and investment relationship between the UK and Australia and the strong uptake of the agreement’s benefits.

    59 . Ministers welcomed close engagement on economic security under the annual United Kingdom-Australia Economic Security Dialogue, noting that its establishment by AUKMIN in 2023 was timely in preparing for future needs. They reflected on the closer integration of our analysis capabilities and committed to a joint-funded track 1.5 to generate practical insights and informal policy dialogue that will inform our joint economic security efforts.

    60 . As both countries continue to develop their bilateral partnership through the UK-Australia FTA, the Economic Security Dialogue, and other fora, Ministers committed to deepening cooperation in key sectors of mutual interest. Ministers view this as an opportunity to explore new areas of collaboration and share best practices in the interests of boosting bilateral trade and investment, facilitating innovation and research, and supporting our mutual economic security and resilience. This year, officials in relevant departments will compare approaches with the aim to identify areas of common interest or complementary strength and discuss further opportunities for related cooperation. This may include initiatives to advance supply chain resilience, frontier research, investment promotion, public finance cooperation, and effective regulation.

    61 . Ministers affirmed the calls in the Global Stocktake under the Paris Agreement for countries to come forward in their next NDCs with ambitious emissions reduction targets aligned with keeping 1.5 degrees within reach. In that context, Ministers recognised the immense economic opportunities in ambitious climate action and a rapid transition to renewable energy. Ministers welcomed the UK’s ambitious NDC and looked forward to Australia’s NDC and Net-Zero Plan. Ministers further welcomed the report released by the UN Secretary General titled ‘Seizing the Moment of Opportunity: Supercharging the new energy era of renewables, efficiency, and electrification’ that highlighted the compelling economic case for the rapidly declining cost of renewable energy, and the rapidly growing role of the clean energy economy in powering jobs and economic growth. Ministers affirmed their determination to fulfil multilateral climate commitments and reiterated the importance of reforming the finance system and improving access to climate finance for developing countries. Ministers recommitted to building nature-positive economies to support a central theme of Brazil’s COP Presidency. The UK reiterated its support for Australia’s bid to host COP31 in partnership with the Pacific and expressed the hope that a decision would soon be reached. Ministers welcomed UK sharing its hosting experience and agreed to explore secondments to support COP31 planning. The UK and Australia welcome the close collaboration between our countries in the Intergovernmental Negotiating Committee (INC) negotiations for an international legally binding instrument on plastic pollution, including through our shared membership of the High Ambition Coalition to End Plastic Pollution. At this critical juncture ahead of INC-5.2, the final opportunity to secure an agreement, we call upon all members of the INC to recommit to working constructively to achieve an effective comprehensive agreement that addresses the full lifecycle of plastic. We recognise that Commonwealth countries are particularly affected by plastic pollution and in that regard we renew our commitment to collaborating through the Commonwealth Clean Ocean Alliance, to tackle plastic pollution in the commonwealth. Ministers pledged to deepen collaboration through the UK-Australia Climate and Clean Energy Partnership.

    62 . Ministers welcomed close cooperation to support the development of resilient critical mineral supply chains governed by market principles. This includes developing a roadmap to promote a standards-based market to reflect the real costs of responsible production, processing and trade of critical minerals as agreed at the recent G7 meeting on 17 June. Ministers agreed upon the importance of the sustainable and responsible extraction and processing of critical minerals for the energy transition, and committed to working together on solutions. These include the new Critical Minerals Supply Finance developed by UK Export Finance (UKEF) which can provide finance support to overseas critical minerals projects that supply the UK’s high-growth sectors. UKEF has up to £5bn in finance support available for projects in Australia and will work closely with Export Finance Australia. Ministers also undertook to ensure the UK is consulted on the design and implementation of Australia’s Critical Minerals Strategic Reserve.

    63 . Ministers discussed the leading roles being played by Australia and the UK in the full and effective implementation of the Biodiversity Beyond National Jurisdiction (BBNJ) Agreement welcoming in particular Australia’s role as Co-Chair of the Preparatory Commission. Ministers were encouraged by each country’s progress towards ratification of the treaty, which is a landmark agreement for protection of the world’s ocean.

    64 . Ministers discussed the increasing geostrategic, climatic, and resource pressures on the Antarctic and Southern Ocean region and reaffirmed their shared and long-standing commitment to the Antarctic Treaty System (ATS). Ministers committed to upholding together the ATS rules and norms of peaceful use, scientific research, international cooperation and environmental protection, and to deepen understanding of the impact of climate change on the oceans and the world through Antarctic research including in the context of the International Polar Year of 2032/33. Ministers welcomed the United Kingdom’s chairing of CCAMLR for 2024-5 and 2025-6.

    65 . Ministers agreed on the importance of ensuring all children have the right to grow up in a safe and nurturing family environment. Ministers recognised the transformative impact on children’s health, capacity to learn and economic prospects that growing up in a family-based environment can have. Ministers acknowledged the UK’s Global Campaign on Children’s Care Reform and agreed to work together to drive international awareness and demonstrate their commitment to children’s care reform.

    66 . Ministers reiterated their commitment to upholding shared values and continuing to invest in sustainable development, gender equality, disability equity and social inclusion, which underpin global prosperity. To support sustainable development, Ministers agreed to deepen cooperation with emerging donors of development assistance, to diversify funding, enhance development effectiveness, share lessons and build trust and transparency with partners. Ministers committed to work together to deliver sustainable solutions for Small Island Developing States (SIDS), recognising their unique vulnerabilities and to ensure meaningful engagement in international processes, including ODA graduation.

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    Updates to this page

    Published 25 July 2025

    MIL OSI United Kingdom –

    July 25, 2025
  • MIL-OSI: Annual Financial Report and Notice of AGM

    Source: GlobeNewswire (MIL-OSI)

    25 JULY 2025

    NORTHERN 3 VCT PLC

    ANNUAL REPORT AND FINANCIAL STATEMENTS AND NOTICE OF ANNUAL GENERAL MEETING

    The annual report and financial statements of Northern 3 VCT PLC (“the Company”) for the year ended 31 March 2025 (“the Annual Report”) and a circular to shareholders including the notice of the 2025 Annual General Meeting, to be held on to be held on Thursday 7 August 2025 (“the Circular”) have been submitted to the National Storage Mechanism.

    Copies of the Annual Report and the Circular are also available on the Company’s website at: www.mercia.co.uk/vcts/n3vct/

    Enquiries:

    Sarah Williams / James Sly, Mercia Fund Management Limited – 0330 223 1430

    Website: www.mercia.co.uk/vcts

    Neither the contents of the Mercia Asset Management PLC website, nor the contents of any website accessible from hyperlinks on the Mercia Asset Management PLC website (or any other website), are incorporated into, or form part of, this announcement.

    The MIL Network –

    July 25, 2025
  • MIL-Evening Report: Leaked document reveals proposed law revisions in NZ, as Western defence of Zionist genocide threatens Pacific

    SPECIAL REPORT: By Mick Hall

    A leaked document has revealed secretive plans to revise terror laws in New Zealand so that people can be charged over statements deemed to constitute material support for a proscribed organisation.

    It shows the government also wants to widen the criteria for proscribing organisations to include groups that are judged to “facilitate” or “promote and encourage” terrorist acts.

    The changes would see the South Pacific nation falling in line with increasingly repressive Western countries like the UK, where scores of independent journalists and anti-genocide protesters have been arrested and charged under terrorism laws in recent months.

    The consultation document, handed over to the New Zealand Council for Civil Liberties (NZCCL), reveals the government has been in contact with a small number of unnamed groups this year over plans to legally redefine what material support involves, so that public statements or gestures involving insignia like flags can lead to charges if construed as support for proscribed groups.

    As part of a proposal to revise the Terrorism Suppression Act, the document suggests the process for designating organisations as terror groups should be changed by “expanding the threshold to enable more modern types of entities to be designated, such as those that ‘facilitate’ or ‘promote and encourage’ terrorist acts”.

    The Ministry of Justice has been contacted in an attempt to ascertain which groups it has been consulting with and why it believed the changes were necessary.

    NZCCL chairman Thomas Beagle told Mick Hall In Context his group was concerned the proposed changes were a further attempt to limit the rights of New Zealanders to engage in political protest.

    ‘What’s going on?’
    “When you look at the proposal to expand the Terrorism Suppression Act, alongside the Police and IPCA conspiring to propose a law change to ban political protest without government permission, you really have to wonder what’s going on,” he said.

    A report by the Independent Police Conduct Authority (IPCA) in February proposed to give police the right to ban protests if they believed there was a high chance of public disorder and threats to public safety.

    That would potentially mean bans on Palestinian solidarity protests if far right counter protestErs posed a threat of violent confrontation.

    The stand-alone legislation would put New Zealand in line with other Five Eyes and NATO-aligned security jurisdictions such as Australia, the United Kingdom, and Canada.

    Beagle points out proposed changes to terror laws would suppress freedom of speech and further undermine freedom of assembly and the right to protest.

    “We’ve seen what’s happening with the state’s abuse of terrorism suppression laws in the UK and are horrified that they have sunk so far and so quickly,” he said.

    More than 100 people were arrested across the UK on suspicion of supporting Palestine Action, a non-violent protest group proscribed as a terrorist organisation by the British government earlier this month.

    Arrests in social media clips
    Social media clips showed pensioners aggressively arrested while attending rallies in Liverpool, London, Manchester, Edinburgh, Bristol and Truro over the weekend.

    Independent journalists and academics have also faced state repression under the UK’s Terrorism Act.

    Among those targeted was Electronic Intifada journalist Asa Winstanley, who had his home raided and devices seized in October last year as part of the opaque counter-terror drive “Operation Incessantness”.

    Independent journalist Asa Winstanley . . . his home was raided and devices seized in October last year as part of “Operation Incessantness”. Image: R Witts Photography/mickhall.substack.com

    In May, the country’s Central Criminal Court ruled the raid was unlawful.

    Journalist Richard Medhurst has had a terror investigation hanging over his head since being detained at Heathrow Airport in August last year and charged under section 8 of the Terrorism Act. Activist and independent journalist Sarah Wilkinson had her house raided in the same month.

    Others have faced similar intimidation and threats of jail. In November 2024, Jewish academic Haim Bresheeth was charged after police alleged he had expressed support for a “proscribed organisation” during a speech outside the London residence of the Israeli ambassador to the UK.

    Meanwhile, dozens of members of Palestine Action are in jail facing terror charges. The vast majority are being held on remand where they may wait two years before going to trial — a common state tactic to take activists off the street and incarcerate them, knowing the chances of conviction are slim when they eventually go to court.

    ‘Targeted amendments’
    The document says the New Zealand government wants to progress “targeted amendments” to the Act, creating or amending offences “to capture contemporary behaviours and activities of concern” like “public expressions of support for a terrorist act or designated entities, for example by showing insignia or distributing propaganda or instructional material.”

    Protesters highlight the proscription of Palestine Action outside the British Embassy at The Hague on July 20. No arrests were made following 80 arrests by Dutch police the week before. Image: Defend Our Juries/mickhall.substack.com

    It suggests that the existing process for proscribing an organisation is slow and cumbersome, noting that: “Specific provisions need to be followed to designate entities not on a UN list, but the decision-making process is lengthy and the designation period is short. This impacts timely decision-making and the usefulness of designation as a tool to prevent terrorism.”

    It proposes to improve “the timeliness of the process, by considering changes to who the decision-maker is” and extending the renewal period from three to five years.

    The document suggests consulting the Attorney-General over designation-related decisions to ensure legal requirements are met may not be required and questions whether the designation process requiring the Prime Minister to review decisions twice is necessary. It asks whether others, like the Foreign Minister, should be involved in the decision-making process.

    Beagle believes the secretive proposals pose a threat to New Zealand’s liberal democracy.

    “Political protest is an important part of New Zealand’s history,” he said.

    “Whether it’s the environment, worker’s rights, feminism, Māori issues, homosexual law reform or any number of other issues, political protest has had a big part in forming what Aotearoa New Zealand is today.

    Protected under Bill of Rights
    “It’s a right protected by New Zealand’s Bill of Rights and is a critical part of being a functioning democracy.”

    The terror laws revision forms part of a wider trend of legislating to close down dissent over New Zealand’s foreign policy, now closely aligned with NATO and US interests.

    The government is also widening the definition of foreign interference in a way that could see people who “should have known” that they were being used by a foreign state to undermine New Zealand’s interests prosecuted.

    The Crimes (Countering Foreign Interference) Amendment Bill, which passed its first reading in Parliament on November 19, would criminalise the act of foreign interference, while also increasing powers of unwarranted searches by authorities.

    The Bill is effectively a reintroduction of the country’s old colonial sedition laws inherited from Britain, the broadness of the law having allowed it to be used against communists, trade unionists and indigenous rights activists.

    Republished from Mick Hall in Context on Substack with permisson.

    MIL OSI Analysis – EveningReport.nz –

    July 25, 2025
  • MIL-Evening Report: Leaked document reveals proposed law revisions in NZ, as Western defence of Zionist genocide threatens Pacific

    SPECIAL REPORT: By Mick Hall

    A leaked document has revealed secretive plans to revise terror laws in New Zealand so that people can be charged over statements deemed to constitute material support for a proscribed organisation.

    It shows the government also wants to widen the criteria for proscribing organisations to include groups that are judged to “facilitate” or “promote and encourage” terrorist acts.

    The changes would see the South Pacific nation falling in line with increasingly repressive Western countries like the UK, where scores of independent journalists and anti-genocide protesters have been arrested and charged under terrorism laws in recent months.

    The consultation document, handed over to the New Zealand Council for Civil Liberties (NZCCL), reveals the government has been in contact with a small number of unnamed groups this year over plans to legally redefine what material support involves, so that public statements or gestures involving insignia like flags can lead to charges if construed as support for proscribed groups.

    As part of a proposal to revise the Terrorism Suppression Act, the document suggests the process for designating organisations as terror groups should be changed by “expanding the threshold to enable more modern types of entities to be designated, such as those that ‘facilitate’ or ‘promote and encourage’ terrorist acts”.

    The Ministry of Justice has been contacted in an attempt to ascertain which groups it has been consulting with and why it believed the changes were necessary.

    NZCCL chairman Thomas Beagle told Mick Hall In Context his group was concerned the proposed changes were a further attempt to limit the rights of New Zealanders to engage in political protest.

    ‘What’s going on?’
    “When you look at the proposal to expand the Terrorism Suppression Act, alongside the Police and IPCA conspiring to propose a law change to ban political protest without government permission, you really have to wonder what’s going on,” he said.

    A report by the Independent Police Conduct Authority (IPCA) in February proposed to give police the right to ban protests if they believed there was a high chance of public disorder and threats to public safety.

    That would potentially mean bans on Palestinian solidarity protests if far right counter protestErs posed a threat of violent confrontation.

    The stand-alone legislation would put New Zealand in line with other Five Eyes and NATO-aligned security jurisdictions such as Australia, the United Kingdom, and Canada.

    Beagle points out proposed changes to terror laws would suppress freedom of speech and further undermine freedom of assembly and the right to protest.

    “We’ve seen what’s happening with the state’s abuse of terrorism suppression laws in the UK and are horrified that they have sunk so far and so quickly,” he said.

    More than 100 people were arrested across the UK on suspicion of supporting Palestine Action, a non-violent protest group proscribed as a terrorist organisation by the British government earlier this month.

    Arrests in social media clips
    Social media clips showed pensioners aggressively arrested while attending rallies in Liverpool, London, Manchester, Edinburgh, Bristol and Truro over the weekend.

    Independent journalists and academics have also faced state repression under the UK’s Terrorism Act.

    Among those targeted was Electronic Intifada journalist Asa Winstanley, who had his home raided and devices seized in October last year as part of the opaque counter-terror drive “Operation Incessantness”.

    Independent journalist Asa Winstanley . . . his home was raided and devices seized in October last year as part of “Operation Incessantness”. Image: R Witts Photography/mickhall.substack.com

    In May, the country’s Central Criminal Court ruled the raid was unlawful.

    Journalist Richard Medhurst has had a terror investigation hanging over his head since being detained at Heathrow Airport in August last year and charged under section 8 of the Terrorism Act. Activist and independent journalist Sarah Wilkinson had her house raided in the same month.

    Others have faced similar intimidation and threats of jail. In November 2024, Jewish academic Haim Bresheeth was charged after police alleged he had expressed support for a “proscribed organisation” during a speech outside the London residence of the Israeli ambassador to the UK.

    Meanwhile, dozens of members of Palestine Action are in jail facing terror charges. The vast majority are being held on remand where they may wait two years before going to trial — a common state tactic to take activists off the street and incarcerate them, knowing the chances of conviction are slim when they eventually go to court.

    ‘Targeted amendments’
    The document says the New Zealand government wants to progress “targeted amendments” to the Act, creating or amending offences “to capture contemporary behaviours and activities of concern” like “public expressions of support for a terrorist act or designated entities, for example by showing insignia or distributing propaganda or instructional material.”

    Protesters highlight the proscription of Palestine Action outside the British Embassy at The Hague on July 20. No arrests were made following 80 arrests by Dutch police the week before. Image: Defend Our Juries/mickhall.substack.com

    It suggests that the existing process for proscribing an organisation is slow and cumbersome, noting that: “Specific provisions need to be followed to designate entities not on a UN list, but the decision-making process is lengthy and the designation period is short. This impacts timely decision-making and the usefulness of designation as a tool to prevent terrorism.”

    It proposes to improve “the timeliness of the process, by considering changes to who the decision-maker is” and extending the renewal period from three to five years.

    The document suggests consulting the Attorney-General over designation-related decisions to ensure legal requirements are met may not be required and questions whether the designation process requiring the Prime Minister to review decisions twice is necessary. It asks whether others, like the Foreign Minister, should be involved in the decision-making process.

    Beagle believes the secretive proposals pose a threat to New Zealand’s liberal democracy.

    “Political protest is an important part of New Zealand’s history,” he said.

    “Whether it’s the environment, worker’s rights, feminism, Māori issues, homosexual law reform or any number of other issues, political protest has had a big part in forming what Aotearoa New Zealand is today.

    Protected under Bill of Rights
    “It’s a right protected by New Zealand’s Bill of Rights and is a critical part of being a functioning democracy.”

    The terror laws revision forms part of a wider trend of legislating to close down dissent over New Zealand’s foreign policy, now closely aligned with NATO and US interests.

    The government is also widening the definition of foreign interference in a way that could see people who “should have known” that they were being used by a foreign state to undermine New Zealand’s interests prosecuted.

    The Crimes (Countering Foreign Interference) Amendment Bill, which passed its first reading in Parliament on November 19, would criminalise the act of foreign interference, while also increasing powers of unwarranted searches by authorities.

    The Bill is effectively a reintroduction of the country’s old colonial sedition laws inherited from Britain, the broadness of the law having allowed it to be used against communists, trade unionists and indigenous rights activists.

    Republished from Mick Hall in Context on Substack with permisson.

    MIL OSI Analysis – EveningReport.nz –

    July 25, 2025
  • MIL-Evening Report: Leaked document reveals proposed law revisions in NZ, as Western defence of Zionist genocide threatens Pacific

    SPECIAL REPORT: By Mick Hall

    A leaked document has revealed secretive plans to revise terror laws in New Zealand so that people can be charged over statements deemed to constitute material support for a proscribed organisation.

    It shows the government also wants to widen the criteria for proscribing organisations to include groups that are judged to “facilitate” or “promote and encourage” terrorist acts.

    The changes would see the South Pacific nation falling in line with increasingly repressive Western countries like the UK, where scores of independent journalists and anti-genocide protesters have been arrested and charged under terrorism laws in recent months.

    The consultation document, handed over to the New Zealand Council for Civil Liberties (NZCCL), reveals the government has been in contact with a small number of unnamed groups this year over plans to legally redefine what material support involves, so that public statements or gestures involving insignia like flags can lead to charges if construed as support for proscribed groups.

    As part of a proposal to revise the Terrorism Suppression Act, the document suggests the process for designating organisations as terror groups should be changed by “expanding the threshold to enable more modern types of entities to be designated, such as those that ‘facilitate’ or ‘promote and encourage’ terrorist acts”.

    The Ministry of Justice has been contacted in an attempt to ascertain which groups it has been consulting with and why it believed the changes were necessary.

    NZCCL chairman Thomas Beagle told Mick Hall In Context his group was concerned the proposed changes were a further attempt to limit the rights of New Zealanders to engage in political protest.

    ‘What’s going on?’
    “When you look at the proposal to expand the Terrorism Suppression Act, alongside the Police and IPCA conspiring to propose a law change to ban political protest without government permission, you really have to wonder what’s going on,” he said.

    A report by the Independent Police Conduct Authority (IPCA) in February proposed to give police the right to ban protests if they believed there was a high chance of public disorder and threats to public safety.

    That would potentially mean bans on Palestinian solidarity protests if far right counter protestErs posed a threat of violent confrontation.

    The stand-alone legislation would put New Zealand in line with other Five Eyes and NATO-aligned security jurisdictions such as Australia, the United Kingdom, and Canada.

    Beagle points out proposed changes to terror laws would suppress freedom of speech and further undermine freedom of assembly and the right to protest.

    “We’ve seen what’s happening with the state’s abuse of terrorism suppression laws in the UK and are horrified that they have sunk so far and so quickly,” he said.

    More than 100 people were arrested across the UK on suspicion of supporting Palestine Action, a non-violent protest group proscribed as a terrorist organisation by the British government earlier this month.

    Arrests in social media clips
    Social media clips showed pensioners aggressively arrested while attending rallies in Liverpool, London, Manchester, Edinburgh, Bristol and Truro over the weekend.

    Independent journalists and academics have also faced state repression under the UK’s Terrorism Act.

    Among those targeted was Electronic Intifada journalist Asa Winstanley, who had his home raided and devices seized in October last year as part of the opaque counter-terror drive “Operation Incessantness”.

    Independent journalist Asa Winstanley . . . his home was raided and devices seized in October last year as part of “Operation Incessantness”. Image: R Witts Photography/mickhall.substack.com

    In May, the country’s Central Criminal Court ruled the raid was unlawful.

    Journalist Richard Medhurst has had a terror investigation hanging over his head since being detained at Heathrow Airport in August last year and charged under section 8 of the Terrorism Act. Activist and independent journalist Sarah Wilkinson had her house raided in the same month.

    Others have faced similar intimidation and threats of jail. In November 2024, Jewish academic Haim Bresheeth was charged after police alleged he had expressed support for a “proscribed organisation” during a speech outside the London residence of the Israeli ambassador to the UK.

    Meanwhile, dozens of members of Palestine Action are in jail facing terror charges. The vast majority are being held on remand where they may wait two years before going to trial — a common state tactic to take activists off the street and incarcerate them, knowing the chances of conviction are slim when they eventually go to court.

    ‘Targeted amendments’
    The document says the New Zealand government wants to progress “targeted amendments” to the Act, creating or amending offences “to capture contemporary behaviours and activities of concern” like “public expressions of support for a terrorist act or designated entities, for example by showing insignia or distributing propaganda or instructional material.”

    Protesters highlight the proscription of Palestine Action outside the British Embassy at The Hague on July 20. No arrests were made following 80 arrests by Dutch police the week before. Image: Defend Our Juries/mickhall.substack.com

    It suggests that the existing process for proscribing an organisation is slow and cumbersome, noting that: “Specific provisions need to be followed to designate entities not on a UN list, but the decision-making process is lengthy and the designation period is short. This impacts timely decision-making and the usefulness of designation as a tool to prevent terrorism.”

    It proposes to improve “the timeliness of the process, by considering changes to who the decision-maker is” and extending the renewal period from three to five years.

    The document suggests consulting the Attorney-General over designation-related decisions to ensure legal requirements are met may not be required and questions whether the designation process requiring the Prime Minister to review decisions twice is necessary. It asks whether others, like the Foreign Minister, should be involved in the decision-making process.

    Beagle believes the secretive proposals pose a threat to New Zealand’s liberal democracy.

    “Political protest is an important part of New Zealand’s history,” he said.

    “Whether it’s the environment, worker’s rights, feminism, Māori issues, homosexual law reform or any number of other issues, political protest has had a big part in forming what Aotearoa New Zealand is today.

    Protected under Bill of Rights
    “It’s a right protected by New Zealand’s Bill of Rights and is a critical part of being a functioning democracy.”

    The terror laws revision forms part of a wider trend of legislating to close down dissent over New Zealand’s foreign policy, now closely aligned with NATO and US interests.

    The government is also widening the definition of foreign interference in a way that could see people who “should have known” that they were being used by a foreign state to undermine New Zealand’s interests prosecuted.

    The Crimes (Countering Foreign Interference) Amendment Bill, which passed its first reading in Parliament on November 19, would criminalise the act of foreign interference, while also increasing powers of unwarranted searches by authorities.

    The Bill is effectively a reintroduction of the country’s old colonial sedition laws inherited from Britain, the broadness of the law having allowed it to be used against communists, trade unionists and indigenous rights activists.

    Republished from Mick Hall in Context on Substack with permisson.

    MIL OSI Analysis – EveningReport.nz –

    July 25, 2025
  • MIL-OSI Security: FBI New York Statement on the Sentencing of Disheem Laquan Riley

    Source: US FBI

    Earlier today in federal court in the Eastern District of New York, Disheem Laquan Riley was sentenced to 24 months imprisonment followed by three years supervised release for making threats and conveying false information about explosives. On January 30 and 31, 2024, Riley made hoax bomb threat phone calls to 17 FBI offices across the country, alleging a bomb had been placed outside each respective FBI office.

    Special agents and task force officers from the FBI’s New York Joint Terrorism Task Force located and arrested Riley on January 31, 2024. Riley ultimately pled guilty to the indictment filed against him.

    “Critical federal law enforcement resources were diverted to mitigate Riley’s hoax threats, and he has been justly sentenced for his targeting of FBI field offices across the country. The FBI takes all bomb threats made against our facilities seriously. Anyone found responsible for making these types of threats will face real punishment in the criminal justice system,” said Assistant Director in Charge Christopher G. Raia from the FBI’s field office in New York.

    FBI New York thanks the U.S. Attorney’s Office for the Eastern District of New York, the New York City Police Department, and the FBI offices across the country for their assistance on the case.

    MIL Security OSI –

    July 25, 2025
  • MIL-OSI: First Savings Financial Group, Inc. Reports Financial Results for the Third Fiscal Quarter Ended June 30, 2025

    Source: GlobeNewswire (MIL-OSI)

    JEFFERSONVILLE, Ind., July 24, 2025 (GLOBE NEWSWIRE) — First Savings Financial Group, Inc. (NASDAQ: FSFG – news) (the “Company”), the holding company for First Savings Bank (the “Bank”), today reported net income of $6.2 million, or $0.88 per diluted share, for the quarter ended June 30, 2025, compared to net income of $4.1 million, or $0.60 per diluted share, for the quarter ended June 30, 2024. Excluding nonrecurring items, the Company reported net income of $5.7 million (non-GAAP measure)(1) and net income per diluted share of $0.81 (non-GAAP measure)(1) for the quarter ended June 30, 2025 compared to $3.5 million, or $0.52 per diluted share for the quarter ended June 30, 2024.

    Commenting on the Company’s performance, Larry W. Myers, President and CEO, stated “We are pleased with the third fiscal quarter performance, including the continued improvement in the net interest margin, which has increased 32 basis points from June of 2024 to June of 2025, solid growth in deposits, expense containment, and meaningful efficiency ratio improvement. The SBA Lending segment posted its second consecutive profitable quarter, which included a solid level of loans originations and sales. Additionally, the SBA Lending pipeline for the fourth fiscal quarter remains robust. We are optimistic regarding the remainder of fiscal 2025 as we anticipate further expansion of the net interest margin, continued profitability from the SBA Lending segment, additional sales of home equity lines of credit, and stable and strong asset quality. We will continue our focus on customer deposit growth, select loan growth opportunities, preservation of asset quality, and prudent capital and liquidity management. We will also continue to evaluate options and strategies that we believe will maximize shareholder value.”

    (1) Non-GAAP net income and net income per diluted share exclude certain nonrecurring items. A reconciliation to GAAP and discussion of the use of non-GAAP measures is included in the table at the end of this release.

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

    Net interest income increased $2.2 million, or 15.1%, to $16.7 million for the three months ended June 30, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the three months ended June 30, 2025 was 2.99% as compared to 2.67% for the same period in 2024. The increase in net interest income was due to an increase of $871,000 in interest income and a decrease of $1.3 million in interest expense. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

    The Company recognized a provision for credit losses for loans and unfunded lending commitments of $347,000 and $77,000, respectively, and a reversal of provision for credit losses on securities of $1,000 for the three months ended June 30, 2025, compared to a provision for credit losses for loans, unfunded lending commitments and securities of $501,000, $158,000 and $84,000, respectively, for the same period in 2024. The Company recognized $309,000 in net charge-offs recognized during the three months ended June 30, 2025, of which $216,000 was related to unguaranteed portions of SBA loans. During the three months ended June 30, 2024, the Company recognized net charge-offs of $105,000, of which $49,000 was related to unguaranteed portions of SBA loans. Nonperforming loans, which consist of nonaccrual loans and loans over 90 days past due and still accruing interest, decreased $1.7 million from $16.9 million at September 30, 2024 to $15.2 million at June 30, 2025.

    Noninterest income increased $1.3 million for the three months ended June 30, 2025 as compared to the same period in 2024. The increase was due primarily to increases in other income and net gain on sales of SBA loans of $565,000 and $351,000, respectively, and net gain on sales of home equity lines of credit (“HELOC”) of $617,000, partially offset by a $404,000 decrease in net unrealized gains on equity securities. The increase in other income was primarily due to a $487,000 gain recognized in connection with a lease termination. The was no gain on sales of HELOC in the 2024 period as the sale of this product commenced in fiscal 2025.

    Noninterest expense increased $1.3 million for the three months ended June 30, 2025 as compared to the same period in 2024. The increase was due primarily to an increase in compensation and benefits of $904,000, which was due to routine salary increases and increases in bonus and incentive accruals in 2025 related to stronger Company performance.

    The Company recognized income tax expense of $963,000 for the three months ended June 30, 2025 compared to $483,000 for the same period in 2024. The increase is due primarily to higher taxable income in 2025 as compared to 2024. The effective tax rate for 2025 was 13.5% compared to 10.6% for 2024. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2025 and 2024 periods.

    Results of Operations for the Nine Months Ended June 30, 2025 and 2024

    The Company reported net income of $17.9 million, or $2.57 per diluted share, for the nine months ended June 30, 2025 compared to net income of $9.9 million, or $1.45 per diluted share, for the nine months ended June 30, 2024. Excluding nonrecurring items, the Company reported net income of $15.1 million (non-GAAP measure)(1) and net income per diluted share of $2.16 (non-GAAP measure)(1) for the nine months ended June 30, 2025 compared to net income of $9.4 million and net income per diluted share of $1.37 for the nine months ended June 30, 2024. The core banking segment reported net income of $17.2 million, or $2.46 per diluted share for the nine months ended June 30, 2025 compared to net income of $13.3 million and net income per diluted share of $1.92 for the nine months ended June 30, 2024. Excluding nonrecurring items, the core banking segment reported net income of $14.4 million (non-GAAP measure)(1), or $2.05 per diluted share (non-GAAP measure)(1) for the nine months ended June 30, 2025 compared to net income of $12.9 million and net income per diluted share of $1.89 for the nine months ended June 30, 2024.

    Net interest income increased $5.2 million, or 12.1%, to $48.2 million for the nine months ended June 30, 2025 as compared to the same period in 2024. The tax equivalent net interest margin for the nine months ended June 30, 2025 was 2.89% as compared to 2.67% for the same period in 2024. The increase in net interest income was due to a $5.5 million increase in interest income, partially offset by a $279,000 increase in interest expense. A table of average balance sheets, including average asset yields and average liability costs, is included at the end of this release.

    The Company recognized a reversal of provision for credit losses for loans and securities of $501,000 and $8,000, respectively, and a provision for unfunded lending commitments of $246,000 for the nine months ended June 30, 2025, compared to a provision for credit losses for loans and securities of $1.7 million and $107,000, respectively, and reversal of provision for unfunded lending commitments of $159,000 for the same period in 2024. The reversal of provisions during the 2025 period was due primarily to the bulk sale of approximately $87.2 million of HELOC during the period and a decrease in qualitative reserves. The Company recognized net charge-offs totaling $271,000 for the nine months ended June 30, 2025, of which $52,000 was related to unguaranteed portions of SBA loans, compared to net charge-offs of $224,000 in 2024, of which $15,000 was related to unguaranteed portions of SBA loans.

    Noninterest income increased $4.5 million for the nine months ended June 30, 2025 as compared to the same period in 2024. The increase was due primarily to a $3.1 million net gain on sales of HELOC, a $403,000 net gain on sales of equity securities in 2025, and the aforementioned $487,000 gain recognized in connection with a lease termination in the 2025 period with no corresponding gain amounts for the 2024 period.

    Noninterest expense increased $2.1 million for the nine months ended June 30, 2025 as compared to the same period in 2024. The increase was due primarily to increases in compensation and benefits and other operating expenses of $1.4 million and $1.1 million, respectively, partially offset by a decrease in professional fees of $412,000. The increase in compensation and benefits is primarily due to routine salary increases and increases in bonus and incentive accruals in 2025 related to stronger Company performance. The increase in other operating expenses was due primarily to a $721,000 reversal of accrued loss contingencies for SBA-guaranteed loans in the 2024 period with no corresponding amount for the 2025 period and a $405,000 accrued contingent liability associated with employee benefits recognized in the 2025 period with no corresponding amount in the 2024 period. The decrease in professional fees is primarily due to the cessation of national mortgage banking operations in the quarter ended December 31, 2023.

    The Company recognized income tax expense of $2.4 million for the nine months ended June 30, 2025 compared to $873,000 for the same period in 2024. The increase is due primarily to higher taxable income in the 2025 period. The effective tax rate for 2025 was 11.8% compared to 8.1%. The effective tax rate is well below the statutory tax rate primarily due to the recognition of investment tax credits related to solar projects in both the 2025 and 2024 periods.

    Comparison of Financial Condition at June 30, 2025 and September 30, 2024

    Total assets decreased $33.7 million, from $2.45 billion at September 30, 2024 to $2.42 billion at June 30, 2025. Net loans held for investment decreased $68.0 million during the nine months ended June 30, 2025, due primarily to $109.1 million of sales of HELOC during the nine months ended June 30, 2025, and residential mortgage loans held for sale increased $42.1 million during the same period.

    Total liabilities decreased $40.4 million due primarily to a decrease in total deposits and other borrowings of $144.7 and $19.9 million, respectively, partially offset by an increase in FHLB borrowings of $133.3 million. The decrease in total deposits was due to a decrease in brokered deposits of $229.1 million, which was due primarily to proceeds from the aforementioned sales of HELOC and greater utilization of FHLB borrowings, partially offset by an increase in customer deposits of $84.4 million. The decrease in other borrowings is due to the redemption of $20.0 million of subordinated notes during the quarter ended June 30, 2023. As of June 30, 2025, deposits exceeding the FDIC insurance limit of $250,000 per insured account were 35.0% of total deposits and 14.3% of total deposits when excluding public funds insured by the Indiana Public Deposit Insurance Fund.

    Total stockholders’ equity increased $6.7 million, from $177.1 million at September 30, 2024 to $183.8 million at June 30, 2025, due primarily to a $14.6 million increase in retained net income, partially offset by a $8.9 million increase in accumulated other comprehensive loss. The increase in accumulated other comprehensive loss was due primarily to increasing long-term market interest rates during the nine months ended June 30, 2025, which resulted in a decrease in the fair value of securities available for sale. At June 30, 2025 and September 30, 2024, the Bank was considered “well-capitalized” under applicable regulatory capital guidelines.

    First Savings Bank is an entrepreneurial community bank headquartered in Jeffersonville, Indiana, which is directly across the Ohio River from Louisville, Kentucky, and operates fifteen depository branches within Southern Indiana. The Bank also has two national lending programs, including single-tenant net lease commercial real estate and SBA lending, with offices located predominately in the Midwest. The Bank is a recognized leader, both in its local communities and nationally for its lending programs. The employees of First Savings Bank strive daily to achieve the organization’s vision, We Expect To Be The BEST community BANK, which fuels our success. The Company’s common shares trade on The NASDAQ Stock Market under the symbol “FSFG.”

    This release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts; rather, they are statements based on the Company’s current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as “expects,” “believes,” “anticipates,” “intends” and similar expressions.

    Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company’s actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, changes in general economic conditions; changes in market interest rates; changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed in the Company’s periodic filings with the Securities and Exchange Commission.

    Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this release or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

    Contact:
    Tony A. Schoen, CPA
    Chief Financial Officer
    812-283-0724

     
    FIRST SAVINGS FINANCIAL GROUP, INC.
    CONSOLIDATED FINANCIAL HIGHLIGHTS
    (Unaudited)
                       
                       
      Three Months Ended   Nine Months Ended    
    OPERATING DATA: June 30,   June 30,    
    (In thousands, except share and per share data)   2025       2024       2025       2024      
                       
    Total interest income $ 31,965     $ 31,094     $ 95,237     $ 89,765      
    Total interest expense   15,240       16,560       47,059       46,780      
                       
    Net interest income   16,725       14,534       48,178       42,985      
                       
    Provision (credit) for credit losses – loans   347       501       (501 )     1,684      
    Provision (credit) for unfunded lending commitments   77       158       246       (159 )    
    Provision (credit) for credit losses – securities   (1 )     84       (8 )     107      
                       
    Total provision (credit) for credit losses   423       743       (263 )     1,632      
                       
    Net interest income after provision (credit) for credit losses   16,302       13,791       48,441       41,353      
                       
    Total noninterest income   4,520       3,196       14,183       9,688      
    Total noninterest expense   13,693       12,431       42,334       40,248      
                       
    Income before income taxes   7,129       4,556       20,290       10,793      
    Income tax expense   963       483       2,400       873      
                       
    Net income $ 6,166     $ 4,073     $ 17,890     $ 9,920      
                       
    Net income per share, basic $ 0.90     $ 0.60     $ 2.60     $ 1.45      
    Weighted average shares outstanding, basic   6,881,077       6,832,452       6,867,734       6,829,490      
                       
    Net income per share, diluted $ 0.88     $ 0.60     $ 2.57     $ 1.45      
    Weighted average shares outstanding, diluted   6,977,674       6,834,784       6,967,742       6,851,145      
                       
                       
    Performance ratios (annualized)                  
    Return on average assets   1.02 %     0.69 %     0.99 %     0.57 %    
    Return on average equity   13.66 %     9.86 %     13.32 %     8.23 %    
    Return on average common stockholders’ equity   13.66 %     9.86 %     13.32 %     8.23 %    
    Net interest margin (tax equivalent basis)   2.99 %     2.67 %     2.89 %     2.67 %    
    Efficiency ratio   64.45 %     70.11 %     67.89 %     76.41 %    
                       
                       
              QTD       FYTD
    FINANCIAL CONDITION DATA: June 30,   March 31,   Increase   September 30,   Increase
    (In thousands, except per share data)   2025       2025     (Decrease)     2024     (Decrease)
                       
    Total assets $ 2,416,675     $ 2,376,230     $ 40,445     $ 2,450,368     $ (33,693 )
    Cash and cash equivalents   52,123       28,683       23,440       52,142       (19 )
    Investment securities   244,284       244,084       200       249,719       (5,435 )
    Loans held for sale   60,970       61,239       (269 )     25,716       35,254  
    Gross loans   1,916,343       1,900,660       15,683       1,985,146       (68,803 )
    Allowance for credit losses   20,522       20,484       38       21,294       (772 )
    Interest earning assets   2,260,099       2,219,504       40,595       2,277,512       (17,413 )
    Goodwill   9,848       9,848       –       9,848       –  
    Core deposit intangibles   275       316       (41 )     398       (123 )
    Noninterest-bearing deposits   202,649       185,252       17,397       191,528       11,121  
    Interest-bearing deposits (customer)   1,253,525       1,207,159       46,366       1,180,196       73,329  
    Interest-bearing deposits (brokered)   280,020       396,770       (116,750 )     509,157       (229,137 )
    Federal Home Loan Bank borrowings   434,924       325,310       109,614       301,640       133,284  
    Subordinated debt and other borrowings   28,722       48,682       (19,960 )     48,603       (19,881 )
    Total liabilities   2,232,853       2,197,041       35,812       2,273,253       (40,400 )
    Accumulated other comprehensive loss   (20,061 )     (19,385 )     (676 )     (11,195 )     (8,866 )
    Total stockholders’ equity   183,822       179,189       4,633       177,115       6,707  
                       
    Book value per share $ 26.35     $ 25.90       0.45     $ 25.72       0.63  
    Tangible book value per share (non-GAAP) (1)   24.90       24.43       0.47       24.23       0.67  
                       
    Non-performing assets:                  
    Nonaccrual loans – SBA guaranteed $ 2,713     $ 123     $ 2,590     $ 5,036     $ (2,323 )
    Nonaccrual loans   12,502       12,597       (95 )     11,906       596  
    Total nonaccrual loans $ 15,215     $ 12,720     $ 2,495     $ 16,942     $ (1,727 )
    Accruing loans past due 90 days   –       –       –       –       –  
    Total non-performing loans   15,215       12,720       2,495       16,942       (1,727 )
    Foreclosed real estate   1,113       444       669       444       669  
    Total non-performing assets $ 16,328     $ 13,164     $ 3,164     $ 17,386     $ (1,058 )
                       
    Asset quality ratios:                  
    Allowance for credit losses as a percent of total gross loans   1.07 %     1.08 %     (0.01 %)     1.07 %     (0.00 %)
    Allowance for credit losses as a percent of nonperforming loans   134.88 %     161.04 %     (26.16 %)     125.69 %     9.19 %
    Nonperforming loans as a percent of total gross loans   0.79 %     0.67 %     0.12 %     0.85 %     (0.06 %)
    Nonperforming assets as a percent of total assets   0.68 %     0.55 %     0.13 %     0.71 %     (0.03 %)
                       
    (1) See reconciliation of GAAP and non-GAAP financial measures for additional information relating to calculation of this item.      
                       
                       
    RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED):         
    The following non-GAAP financial measures used by the Company provide information useful to investors in understanding the Company’s performance. The Company believes the financial measures presented below are important because of their widespread use by investors as a means to evaluate capital adequacy and earnings. The following table summarizes the non-GAAP financial measures derived from amounts reported in the Company’s consolidated financial statements and reconciles those non-GAAP financial measures with the comparable GAAP financial measures.
                   
      Three Months Ended   Fiscal Year Ended    
    Net Income June 30,   June 30,    
    (In thousands)   2025       2024       2025       2024      
                       
    Net income attributable to the Company (non-GAAP) $ 5,691     $ 3,534     $ 15,057     $ 9,381      
    Plus: Gain on bulk sale of loans, home equity lines of credit, net of tax effect   –       –       1,869       –      
    Plus: Gain on life insurance, net of tax effect   110       –       110       –      
    Plus: Gain on lease termination, net of tax effect   365       –       365       –      
    Plus: Gain on sale of equity securities, net of tax effect   –       –       302       –      
    Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect   –       212       –       212      
    Plus: Gain on sale of premises and equipment, net of tax effect   –       –       186       –      
    Plus: Recording of Visa Class C shares, net of tax   –       327       –       327      
    Net income attributable to the Company (GAAP) $ 6,166     $ 4,073     $ 17,890     $ 9,920      
                       
    Net Income per Share, Diluted                  
                       
    Net income per share attributable to the Company, diluted (non-GAAP) $ 0.81     $ 0.52     $ 2.16     $ 1.37      
    Plus: Gain on bulk sale of loans, home equity lines of credit, net of tax effect   –       –       0.27       –      
    Plus: Gain on life insurance, net of tax effect   0.02       –       0.02       –      
    Plus: Gain on lease termination, net of tax effect   0.05       –       0.05       –      
    Plus: Gain on sale of equity securities, net of tax effect   –       –       0.04       –      
    Plus: Decrease in loss contingency for SBA-guaranteed loans, net of tax effect   –       0.03       –       0.03      
    Plus: Gain on sale of premises and equipment, net of tax effect   –       –       0.03       –      
    Plus: Recording of Visa Class C shares, net of tax   –       0.05       –       0.05      
    Net income per share, diluted (GAAP) $ 0.88     $ 0.60     $ 2.57     $ 1.45      
                       
    Core Bank Segment Net Income                  
    (In thousands)                  
                       
    Net income attributable to the Core Bank (non-GAAP) $ 5,299     $ 4,176     $ 14,379     $ 12,947      
    Plus: Gain on bulk sale of loans, home equity lines of credit, net of tax effect   –       –       1,869       –      
    Plus: Gain on life insurance, net of tax effect   110       –       110       –      
    Plus: Gain on lease termination, net of tax effect   365       –       365       –      
    Plus: Gain on sale of equity securities, net of tax effect   –       –       302       –      
    Plus: Gain on sale of premises and equipment, net of tax effect   –       –       186       –      
    Plus: Recording of Visa Class C shares, net of tax   –       327       –       327      
    Net income attributable to the Core Bank (GAAP) $ 5,774     $ 4,503     $ 17,212     $ 13,274      
                       
    Core Bank Segment Net Income per Share, Diluted                  
                       
    Core Bank net income per share, diluted (non-GAAP) $ 0.75     $ 0.64     $ 2.05     $ 1.89      
    Plus: Gain on bulk sale of loans, home equity lines of credit, net of tax effect   –       –       0.27       –      
    Plus: Gain on life insurance, net of tax effect   0.02       –       0.02       –      
    Plus: Gain on lease termination, net of tax effect   0.05       –       0.05       –      
    Plus: Gain on sale of equity securities, net of tax effect   –       –       0.04       –      
    Plus: Gain on sale of premises and equipment, net of tax effect   –       –       –       0.03      
    Plus: Recording of Visa Class C shares, net of tax   –       0.05       0.03       –      
    Core Bank net income per share, diluted (GAAP) $ 0.82     $ 0.69     $ 2.46     $ 1.92      
                       
                       
    RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES (UNAUDITED) (CONTINUED): Three Months Ended   Fiscal Year Ended    
    Efficiency Ratio June 30,   June 30,    
    (In thousands)   2025       2024       2025       2024      
                       
    Net interest income (GAAP) $ 16,725     $ 14,534     $ 48,178     $ 42,985      
                       
    Noninterest income (GAAP)   4,520       3,196       14,183       9,688      
                       
    Noninterest expense (GAAP)   13,693       12,431       42,334       40,248      
                       
    Efficiency ratio (GAAP)   64.45 %     70.11 %     67.89 %     76.41 %    
                       
    Noninterest income (GAAP) $ 4,520     $ 3,196     $ 14,183     $ 9,688      
    Less: Gain on bulk sale of loans, home equity lines of credit   –       –       (2,492 )     –      
    Less: Gain on life insurance   (147 )     –       (147 )     –      
    Less: Gain on lease termination   (487 )     –       (487 )     –      
    Less: Gain on sale of equity securities   –       –       (403 )     –      
    Less: Gain on sale of premises and equipment   –       –       (140 )     –      
    Less: Recording of Visa Class C shares   –       (245 )     –       (245 )    
    Noninterest income (Non-GAAP)   3,886       2,951       10,515       9,443      
                       
    Noninterest expense (GAAP) $ 13,693     $ 12,431     $ 42,334     $ 40,248      
    Plus: Decrease in loss contingency for SBA-guaranteed loans   –       283       –       283      
    Noninterest expense (Non-GAAP) $ 13,693     $ 12,714     $ 42,334     $ 40,531      
                       
    Efficiency ratio (excluding nonrecurring items) (non-GAAP)   66.44 %     72.71 %     72.13 %     77.31 %    
                       
              QTD       FYTD
    Tangible Book Value Per Share June 30,   March 31,   Increase   September 30,   Increase
    (In thousands, except share and per share data)   2025       2025     (Decrease)     2024     (Decrease)
                       
    Stockholders’ equity (GAAP) $ 183,822     $ 179,189     $ 4,633     $ 177,115     $ 6,707  
    Less: goodwill and core deposit intangibles   (10,123 )     (10,164 )     41       (10,246 )     123  
    Tangible stockholders’ equity (non-GAAP) $ 173,699     $ 169,025     $ 4,674     $ 166,869     $ 6,830  
                       
    Outstanding common shares   6,976,558       6,919,136     $ 57,422       6,887,106     $ 89,452  
                       
    Tangible book value per share (non-GAAP) $ 24.90     $ 24.43     $ 0.47     $ 24.23     $ 0.67  
                       
    Book value per share (GAAP) $ 26.35     $ 25.90     $ 0.45     $ 25.72     $ 0.63  
                       
                       
                       
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED): As of
    Summarized Consolidated Balance Sheets June 30,   March 31,   December 31,   September 30,   June 30,
    (In thousands, except per share data)   2025       2025       2024       2024       2024  
                       
    Total cash and cash equivalents $ 52,123     $ 28,683     $ 76,224     $ 52,142     $ 42,423  
    Total investment securities   244,284       244,084       242,634       249,719       238,785  
    Total loans held for sale   60,970       61,239       24,441       25,716       125,859  
    Total loans, net of allowance for credit losses   1,895,821       1,880,176       1,884,514       1,963,852       1,826,980  
    Loan servicing rights   2,869       2,744       2,661       2,754       2,860  
    Total assets   2,416,675       2,376,230       2,388,735       2,450,368       2,393,491  
                       
    Customer deposits $ 1,456,174     $ 1,392,411     $ 1,395,766     $ 1,371,724     $ 1,312,997  
    Brokered deposits   280,020       396,770       437,008       509,157       399,151  
    Total deposits   1,736,194       1,789,181       1,832,774       1,880,881       1,712,148  
    Federal Home Loan Bank borrowings   434,924       325,310       295,000       301,640       425,000  
                       
    Common stock and additional paid-in capital $ 30,090     $ 28,650     $ 28,382     $ 27,725     $ 27,592  
    Retained earnings – substantially restricted   187,969       182,918       178,526       173,337       170,688  
    Accumulated other comprehensive loss   (20,061 )     (19,385 )     (17,789 )     (11,195 )     (17,415 )
    Unearned stock compensation   (2,005 )     (862 )     (973 )     (901 )     (999 )
    Less treasury stock, at cost   (12,171 )     (12,132 )     (12,119 )     (11,851 )     (11,866 )
    Total stockholders’ equity   183,822       179,189       176,027       177,115       168,000  
                       
    Outstanding common shares   6,976,558       6,919,136       6,909,173       6,887,106       6,883,656  
                       
                       
      Three Months Ended
    Summarized Consolidated Statements of Income June 30,   March 31,   December 31,   September 30,   June 30,
    (In thousands, except per share data)   2025       2025       2024       2024       2024  
                       
    Total interest income $ 31,965     $ 30,823     $ 32,449     $ 32,223     $ 31,094  
    Total interest expense   15,240       14,832       16,987       17,146       16,560  
    Net interest income   16,725       15,991       15,462       15,077       14,534  
    Provision (credit) for credit losses – loans   347       (357 )     (491 )     1,808       501  
    Provision (credit) for unfunded lending commitments   77       123       46       (262 )     158  
    Provision (credit) for credit losses – securities   (1 )     (1 )     (6 )     (86 )     84  
    Total provision (credit) for credit losses   423       (235 )     (451 )     1,460       743  
                       
    Net interest income after provision for credit losses   16,302       16,226       15,913       13,617       13,791  
                       
    Total noninterest income   4,520       3,560       6,103       2,842       3,196  
    Total noninterest expense   13,693       13,698       14,943       12,642       12,431  
    Income before income taxes   7,129       6,088       7,073       3,817       4,556  
    Income tax expense (benefit)   963       589       848       145       483  
    Net income   6,166       5,499       6,225       3,672       4,073  
                       
                       
    Net income per share, basic $ 0.90     $ 0.80     $ 0.91     $ 0.54     $ 0.60  
    Weighted average shares outstanding, basic   6,881,077       6,875,826       6,851,153       6,832,626       6,832,452  
                       
    Net income per share, diluted $ 0.88     $ 0.79     $ 0.89     $ 0.53     $ 0.60  
    Weighted average shares outstanding, diluted   6,977,674       6,960,020       6,969,223       6,894,532       6,842,336  
                       
                       
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended
    Noninterest Income Detail June 30,   March 31,   December 31,   September 30,   June 30,
    (In thousands)   2025       2025       2024       2024       2024  
                       
    Service charges on deposit accounts $ 537     $ 541     $ 567     $ 552     $ 538  
    ATM and interchange fees   648       632       665       642       593  
    Net unrealized gain on equity securities   15       47       78       28       419  
    Net gain on equity securities   –       –       403       –       –  
    Net gain on sales of loans, Small Business Administration   932       1,078       711       647       581  
    Net gain on sales of loans, home equity lines of credit   617       –       2,492       –       –  
    Mortgage banking income   96       104       78       6       49  
    Increase in cash surrender value of life insurance   358       380       361       363       353  
    Gain on life insurance   147       –       108       –       –  
    Commission income   184       255       210       294       220  
    Real estate lease income   132       122       121       122       154  
    Net gain (loss) on premises and equipment   –       –       45       (4 )     –  
    Other income   854       401       264       192       289  
    Total noninterest income $ 4,520     $ 3,560     $ 6,103     $ 2,842     $ 3,196  
                       
                       
      Three Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,
    Consolidated Performance Ratios (Annualized)   2025       2025       2024       2024       2024  
                       
    Return on average assets   1.02 %     0.93 %     1.02 %     0.61 %     0.69 %
    Return on average equity   13.66 %     12.24 %     14.07 %     8.52 %     9.86 %
    Return on average common stockholders’ equity   13.66 %     12.34 %     14.07 %     8.52 %     9.86 %
    Net interest margin (tax equivalent basis)   2.99 %     2.93 %     2.75 %     2.72 %     2.67 %
    Efficiency ratio   64.45 %     70.06 %     69.29 %     70.55 %     70.11 %
                       
                       
      As of or for the Three Months Ended
      June 30,   March 31,   December 31,   September 30,   June 30,
    Consolidated Asset Quality Ratios   2025       2025       2024       2024       2024  
                       
    Nonperforming loans as a percentage of total loans   0.79 %     0.67 %     0.87 %     0.85 %     0.91 %
    Nonperforming assets as a percentage of total assets   0.68 %     0.55 %     0.71 %     0.71 %     0.72 %
    Allowance for credit losses as a percentage of total loans   1.07 %     1.08 %     1.09 %     1.07 %     1.07 %
    Allowance for credit losses as a percentage of nonperforming loans   134.88 %     161.04 %     124.85 %     125.69 %     118.12 %
    Net charge-offs to average outstanding loans   0.02 %     -0.01 %     0.01 %     0.02 %     0.01 %
                       
                       
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended
    Segmented Statements of Income Information June 30,   March 31,   December 31,   September 30,   June 30,
    (In thousands)   2025       2025       2024       2024       2024  
                       
    Core Banking Segment:                  
    Net interest income $ 15,086     $ 14,259     $ 13,756     $ 14,083     $ 13,590  
    Provision (credit) for credit losses – loans   420       (540 )     (745 )     1,339       320  
    Provision (credit) for unfunded lending commitments   32       35       (75 )     78       64  
    Provision (credit) for credit losses – securities   (1 )     (1 )     (7 )     (86 )     84  
    Total provision (credit) for credit losses   451       (506 )     (827 )     1,331       468  
    Net interest income after provision (credit) for credit losses   14,635       14,765       14,583       12,752       13,122  
    Noninterest income   3,340       2,242       5,253       2,042       2,474  
    Noninterest expense   11,366       11,486       12,574       10,400       10,192  
    Income before income taxes   6,609       5,521       7,262       4,394       5,404  
    Income tax expense   835       452       893       301       689  
    Net income $ 5,774     $ 5,069     $ 6,369     $ 4,093     $ 4,715  
                       
    SBA Lending Segment (Q2):                  
    Net interest income $ 1,639     $ 1,732     $ 1,706     $ 994     $ 944  
    Provision (credit) for credit losses – loans   (73 )     183       255       469       181  
    Provision (credit) for unfunded lending commitments   45       88       121       (340 )     94  
    Total provision (credit) for credit losses   (28 )     271       376       129       275  
    Net interest income after provision for credit losses   1,667       1,461       1,330       865       669  
    Noninterest income   1,180       1,318       850       800       722  
    Noninterest expense   2,327       2,212       2,369       2,242       2,239  
    Income (loss) before income taxes   520       567       (189 )     (577 )     (848 )
    Income tax expense (benefit)   128       137       (45 )     (156 )     (206 )
    Net income (loss) $ 392     $ 430     $ (144 )   $ (421 )   $ (642 )
                       
                       
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended
    Segmented Statements of Income Information June 30,   March 31,   December 31,   September 30,   June 30,
    (In thousands, except percentage data)   2025       2025       2024       2024       2024  
                       
    Net Income (Loss) Per Share by Segment                  
    Net income per share, basic – Core Banking $ 0.84     $ 0.74     $ 0.93     $ 0.60     $ 0.69  
    Net income (loss) per share, basic – SBA Lending (Q2)   0.06       0.06       (0.02 )     (0.06 )     (0.09 )
    Total net income (loss) per share, basic $ 0.90     $ 0.80     $ 0.91     $ 0.54     $ 0.60  
                       
    Net Income (Loss) Per Diluted Share by Segment                  
    Net income per share, diluted – Core Banking $ 0.82     $ 0.73     $ 0.91     $ 0.59     $ 0.69  
    Net income (loss) per share, diluted – SBA Lending (Q2)   0.06       0.06       (0.02 )     (0.06 )     (0.09 )
    Total net income per share, diluted $ 0.88     $ 0.79     $ 0.89     $ 0.53     $ 0.60  
                       
    Return on Average Assets by Segment (annualized) (3)                  
    Core Banking   1.01 %     0.90 %     1.09 %     0.71 %     0.83 %
    SBA Lending   1.36 %     1.58 %     (0.55 %)     (1.71 %)     (2.91 %)
                       
    Efficiency Ratio by Segment (annualized) (3)                  
    Core Banking   61.68 %     69.61 %     66.15 %     64.50 %     63.45 %
    SBA Lending   82.55 %     72.52 %     92.68 %     124.97 %     134.39 %
                       
                       
      Three Months Ended
    Noninterest Expense Detail by Segment June 30,   March 31,   December 31,   September 30,   June 30,
    (In thousands)   2025       2025       2024       2024       2024  
                       
    Core Banking Segment:                  
    Compensation $ 6,470     $ 6,637     $ 7,245     $ 5,400     $ 5,587  
    Occupancy   1,533       1,648       1,577       1,554       1,573  
    Advertising   437       429       338       399       253  
    Other   2,926       2,772       3,414       3,047       2,779  
    Total Noninterest Expense $ 11,366     $ 11,486     $ 12,574     $ 10,400     $ 10,192  
                       
    SBA Lending Segment (Q2):                  
    Compensation $ 1,914     $ 1,892     $ 1,931     $ 1,854     $ 1,893  
    Occupancy   92       50       59       55       51  
    Advertising   17       10       14       17       12  
    Other   304       260       365       316       283  
    Total Noninterest Expense $ 2,327     $ 2,212     $ 2,369     $ 2,242     $ 2,239  
                       
                       
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended
    SBA Lending (Q2) Data June 30,   March 31,   December 31,   September 30,   June 30,
    (In thousands, except percentage data)   2025       2025       2024       2024       2024  
                       
    Final funded loans guaranteed portion sold, SBA $ 18,019     $ 15,716     $ 10,785     $ 10,880     $ 7,515  
                       
    Gross gain on sales of loans, SBA $ 1,548     $ 1,508     $ 1,141     $ 1,029     $ 811  
    Weighted average gross gain on sales of loans, SBA   8.59 %     9.60 %     10.58 %     9.46 %     10.79 %
                       
    Net gain on sales of loans, SBA (2) $ 932     $ 1,078     $ 711     $ 647     $ 581  
    Weighted average net gain on sales of loans, SBA   5.17 %     6.86 %     6.59 %     5.95 %     7.73 %
                       
                       
    (2) Inclusive of gains on servicing assets and net of commissions, referral fees, SBA repair fees and discounts on unguaranteed portions held-for-investment.    
                       
                       
    SUMMARIZED FINANCIAL INFORMATION (UNAUDITED) (CONTINUED): Three Months Ended
    Summarized Consolidated Average Balance Sheets June 30,   March 31,   December 31,   September 30,   June 30,
    (In thousands)   2025       2025       2024       2024       2024  
    Interest-earning assets                  
    Average balances:                  
    Interest-bearing deposits with banks $ 15,889     $ 11,851     $ 21,102     $ 16,841     $ 26,100  
    Loans   1,992,567       1,946,338       2,010,082       1,988,997       1,943,716  
    Investment securities – taxable   104,169       102,744       101,960       99,834       101,350  
    Investment securities – nontaxable   162,017       161,579       160,929       158,917       157,991  
    FRB and FHLB stock   24,993       24,986       24,986       24,986       24,986  
    Total interest-earning assets $ 2,299,635     $ 2,247,498     $ 2,319,059     $ 2,289,575     $ 2,254,143  
                       
    Interest income (tax equivalent basis):                  
    Interest-bearing deposits with banks $ 145     $ 168     $ 210     $ 209     $ 324  
    Loans   29,214       27,998       29,617       29,450       28,155  
    Investment securities – taxable   947       921       914       910       918  
    Investment securities – nontaxable   1,733       1,719       1,715       1,685       1,665  
    FRB and FHLB stock   416       511       493       471       519  
    Total interest income (tax equivalent basis) $ 32,455     $ 31,317     $ 32,949     $ 32,725     $ 31,581  
                       
    Weighted average yield (tax equivalent basis, annualized):                  
    Interest-bearing deposits with banks   3.65 %     5.67 %     3.98 %     4.96 %     4.97 %
    Loans   5.86 %     5.75 %     5.89 %     5.92 %     5.79 %
    Investment securities – taxable   3.64 %     3.59 %     3.59 %     3.65 %     3.62 %
    Investment securities – nontaxable   4.28 %     4.26 %     4.26 %     4.24 %     4.22 %
    FRB and FHLB stock   6.66 %     8.18 %     7.89 %     7.54 %     8.31 %
    Total interest-earning assets   5.65 %     5.57 %     5.68 %     5.72 %     5.60 %
                       
    Interest-bearing liabilities                  
    Interest-bearing deposits $ 1,537,248     $ 1,653,058     $ 1,671,156     $ 1,563,258     $ 1,572,871  
    Federal Home Loan Bank borrowings   437,371       266,975       315,583       378,956       351,227  
    Subordinated debt and other borrowings   35,070       48,656       48,616       48,576       48,537  
    Total interest-bearing liabilities $ 2,009,689     $ 1,968,689     $ 2,035,355     $ 1,990,790     $ 1,972,635  
                       
    Interest expense:                  
    Interest-bearing deposits $ 10,601     $ 12,069     $ 13,606     $ 12,825     $ 12,740  
    Federal Home Loan Bank borrowings   4,149       2,001       2,617       3,521       3,021  
    Subordinated debt and other borrowings   489       762       764       800       799  
    Total interest expense $ 15,239     $ 14,832     $ 16,987     $ 17,146     $ 16,560  
                       
    Weighted average cost (annualized):                  
    Interest-bearing deposits   2.76 %     2.92 %     3.26 %     3.28 %     3.24 %
    Federal Home Loan Bank borrowings   3.79 %     3.00 %     3.32 %     3.72 %     3.44 %
    Subordinated debt and other borrowings   5.58 %     6.26 %     6.29 %     6.59 %     6.58 %
    Total interest-bearing liabilities   3.03 %     3.01 %     3.34 %     3.45 %     3.36 %
                       
    Net interest income (taxable equivalent basis) $ 17,216     $ 16,485     $ 15,962     $ 15,579     $ 15,021  
    Less: taxable equivalent adjustment   (491 )     (494 )     (500 )     (502 )     (487 )
    Net interest income $ 16,725     $ 15,991     $ 15,462     $ 15,077     $ 14,534  
                       
    Interest rate spread (tax equivalent basis, annualized)   2.62 %     2.56 %     2.34 %     2.27 %     2.24 %
                       
    Net interest margin (tax equivalent basis, annualized)   2.99 %     2.93 %     2.75 %     2.72 %     2.67 %
                       

    The MIL Network –

    July 25, 2025
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