Intelligence – Page 154

MIL-OSI: Transocean Ltd. Reports First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

	Three months ended									Three months ended
	March 31,			December 31,			sequential			March 31,			year-over-year
	2025			2024			change			2024			change
(In millions, except per share amounts, percentages and backlog)
Contract drilling revenues	$	906		$	952		$	(46	)	$	763		$	143
Revenue efficiency ⁽¹⁾		95.5	%		93.5	%					92.9	%
Operating and maintenance expense	$	618		$	579		$	(39	)	$	523		$	(95	)
Net income (loss) attributable to controlling interest	$	(79	)	$	7		$	(86	)	$	98		$	(177	)
Basic earnings (loss) per share	$	(0.09	)	$	0.01		$	(0.10	)	$	0.12		$	(0.21	)
Diluted earnings (loss) per share	$	(0.11	)	$	(0.11	)	$	—		$	0.11		$	(0.22	)

Adjusted EBITDA	$	244		$	323		$	(79	)	$	199		$	45
Adjusted EBITDA margin		26.9	%		33.9	%					26.0	%
Adjusted net income (loss)	$	(65	)	$	27		$	(92	)	$	(22	)	$	(43	)
Adjusted diluted loss per share	$	(0.10	)	$	(0.09	)	$	(0.01	)	$	(0.03	)	$	(0.07	)


Backlog as of the April 2025 Fleet Status Report	$	7.9	billion

STEINHAUSEN, Switzerland, April 28, 2025 (GLOBE NEWSWIRE) — Transocean Ltd. (NYSE: RIG) today reported a net loss attributable to controlling interest of $79 million, or loss of $0.11 per diluted share, for the three months ended March 31, 2025.

First quarter results included $14 million, $0.01 per diluted share, for unfavorable discrete tax items, net. After consideration of these discrete items, first quarter 2025 adjusted net loss was $65 million, or loss of $0.10 per diluted share.

Contract drilling revenues for the three months ended March 31, 2025, decreased sequentially by $46 million to $906 million, primarily due to lower revenues generated by one rig that was undergoing contract preparation and mobilization activities during the quarter, lower revenues generated by one rig that was idle in between contracts and two fewer days in the quarter, partially offset by higher revenue efficiency and average daily revenues across the fleet.

Operating and maintenance expense was $618 million, compared with $579 million in the prior quarter. The sequential increase was the result of an unfavorable legal outcome in the first quarter, a favorable legal settlement in the fourth quarter and increased costs related to a rig in shipyard, partially offset by lower in-service maintenance costs across our fleet.

General and administrative expense was $50 million, down from $56 million in the fourth quarter due primarily to decreased legal and professional fees.

Interest expense was $152 million in the first and fourth quarter, excluding the favorable adjustment of $36 million and $61 million, respectively, for the fair value of the bifurcated exchange feature related to the 4.625% exchangeable bonds. Interest income was $8 million, compared to $10 million in the prior quarter.

The Effective Tax Rate⁽²⁾ was (95.8)%, down from 89.0% in the prior quarter. The decrease was primarily due to lower operating income in the current quarter compared to the prior quarter. The Effective Tax Rate excluding discrete items was (62.3)% compared to 56.7% in the previous quarter. In the first quarter, cash paid for taxes was $13 million.

Cash provided by operating activities was $26 million during the first quarter of 2025, representing a decrease of $180 million compared to the prior quarter. The sequential decrease was in large part due to reduced collections from customers and increased payroll-related payments that regularly occur in the first quarter of each year.

First quarter 2025 capital expenditures of $60 million, compared to $29 million in the prior quarter, were related to capital upgrades for certain rigs in our fleet.

“The Transocean team delivered a solid quarter, with an adjusted EBITDA of $244 million on revenues of $906 million,” said Chief Executive Officer, Jeremy Thigpen. “We also improved our balance sheet with the repayment of $210 million in outstanding debt.”

Thigpen concluded, “While uncertain macroeconomic conditions have resulted in near-term market volatility, including commodity prices, Transocean is very well-positioned to navigate this evolving landscape. In addition to continuing to deliver strong operating performance across our highly contracted fleet, we remain engaged in constructive conversations with our customers on opportunities several years in the future.”

Non-GAAP Financial Measures

We present our operating results in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). We believe certain financial measures, such as EBITDA, Adjusted EBITDA, Adjusted Net Income and Free Cash Flow, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under U.S. GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with U.S. GAAP.

All non-GAAP measure reconciliations to the most comparative U.S. GAAP measures are displayed in quantitative schedules on the company’s website at: www.deepwater.com.

About Transocean

Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services, and operates the highest specification floating offshore drilling fleet in the world.

Transocean owns or has partial ownership interests in and operates a fleet of 34 mobile offshore drilling units, consisting of 26 ultra-deepwater floaters and eight harsh environment floaters.

For more information about Transocean, please visit: www.deepwater.com.

Conference Call Information

Transocean will conduct a teleconference starting at 10 a.m. EDT, 4 p.m. CEST, on Tuesday, April 29, 2025, to discuss the results. To participate, dial +1 785-424-1619 and refer to conference code 119877 approximately 15 minutes prior to the scheduled start time.

The teleconference will be simulcast in a listen-only mode at: www.deepwater.com, by selecting Investors, News, and Webcasts. Supplemental materials that may be referenced during the teleconference will be available at: www.deepwater.com, by selecting Investors, Financial Reports.

A replay of the conference call will be available after 1 p.m. EDT, 7 p.m. CEST, on Tuesday, April 29, 2025. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-7202, passcode 119877. The replay will also be available on the company’s website.

Forward-Looking Statements

The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could contain words such as “possible,” “intend,” “will,” “if,” “expect,” or other similar expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, timing of the company’s newbuild deliveries, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the fluctuation of current and future prices of oil and gas, the global and regional supply and demand for oil and gas, the intention to scrap certain drilling rigs, the success of our business following prior acquisitions, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, and other factors, including those and other risks discussed in the company’s most recent Annual Report on Form 10-K for the year ended December 31, 2024, and in the company’s other filings with the SEC, which are available free of charge on the SEC’s website at: www.sec.gov. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.

This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”) or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.

Notes

(1)		Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations. See the accompanying schedule entitled “Revenue Efficiency.”

(2)		Effective Tax Rate is defined as income tax expense or benefit divided by income or loss before income taxes. See the accompanying schedule entitled “Supplemental Effective Tax Rate Analysis.”

Analyst Contact:
Alison Johnson
+1 713-232-7214

Media Contact:
Pam Easton
+1 713-232-7647


TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per share data) (Unaudited)

	Three months ended
	March 31,
	2025			2024

Contract drilling revenues	$	906		$	763

Costs and expenses
Operating and maintenance		618			523
Depreciation and amortization		176			185
General and administrative		50			52
		844			760

Gain (loss) on disposal of assets, net		2			(6	)
Operating income (loss)		64			(3	)

Other income (expense), net
Interest income		8			15
Interest expense, net of amounts capitalized		(116	)		(117	)
Other, net		4			12
		(104	)		(90	)
Loss before income tax expense (benefit)		(40	)		(93	)
Income tax expense (benefit)		39			(191	)

Net income (loss)		(79	)		98
Net income attributable to noncontrolling interest		—			—
Net income (loss) attributable to controlling interest	$	(79	)	$	98

Earnings (loss) per share
Basic	$	(0.09	)	$	0.12
Diluted	$	(0.11	)	$	0.11

Weighted-average shares outstanding
Basic		883			819
Diluted		958			955


TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In millions, except share data) (Unaudited)

	March 31,			December 31,
	2025			2024
Assets
Cash and cash equivalents	$	263		$	560
Accounts receivable, net of allowance of $2 at March 31, 2025 and December 31, 2024		551			564
Materials and supplies, net of allowance of $184 and $178 at March 31, 2025 and December 31, 2024, respectively		453			439
Assets held for sale		344			343
Restricted cash and cash equivalents		428			381
Other current assets		165			165
Total current assets		2,204			2,452

Property and equipment		22,460			22,417
Less accumulated depreciation		(6,746	)		(6,586	)
Property and equipment, net		15,714			15,831

Deferred tax assets, net		50			45
Other assets		1,051			1,043
Total assets	$	19,019		$	19,371

Liabilities and equity
Accounts payable	$	273		$	255
Accrued income taxes		24			31
Debt due within one year		712			686
Other current liabilities		647			691
Total current liabilities		1,656			1,663

Long-term debt		5,936			6,195
Deferred tax liabilities, net		519			499
Other long-term liabilities		697			729
Total long-term liabilities		7,152			7,423

Commitments and contingencies

Shares, $0.10 par value, 1,057,879,029 authorized, 141,262,093 conditionally authorized, 940,828,901 issued
and 883,261,456 outstanding at March 31, 2025, and $0.10 par value, 1,057,879,029 authorized,
141,262,093 conditionally authorized, 940,828,901 issued and 875,830,772 outstanding at December 31, 2024		88			87
Additional paid-in capital		14,887			14,880
Accumulated deficit		(4,624	)		(4,545	)
Accumulated other comprehensive loss		(141	)		(138	)
Total controlling interest shareholders’ equity		10,210			10,284
Noncontrolling interest		1			1
Total equity		10,211			10,285
Total liabilities and equity	$	19,019		$	19,371


TRANSOCEAN LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited)

	Three months ended
	March 31,
	2025			2024
Cash flows from operating activities
Net income (loss)	$	(79	)	$	98
Adjustments to reconcile to net cash provided by (used in) operating activities:
Amortization of contract intangible asset		—			4
Depreciation and amortization		176			185
Share-based compensation expense		8			11
(Gain) loss on disposal of assets, net		(2	)		6
Amortization of debt-related balances, net		13			13
Gain on adjustment to bifurcated compound exchange feature		(36	)		(10	)
Loss on impairment of investment in unconsolidated affiliates		—			1
Deferred income tax expense (benefit)		15			(164	)
Other, net		4			—
Changes in deferred revenues, net		(38	)		77
Changes in deferred costs, net		(12	)		(38	)
Changes in other operating assets and liabilities, net		(23	)		(269	)
Net cash provided by (used in) operating activities		26			(86	)

Cash flows from investing activities
Capital expenditures		(60	)		(83	)
Investment in loan to unconsolidated affiliate		—			(2	)
Proceeds from disposal of assets, net of costs to sell		2			44
Net cash used in investing activities		(58	)		(41	)

Cash flows from financing activities
Repayments of debt		(210	)		(151	)
Other, net		(8	)		(1	)
Net cash used in financing activities		(218	)		(152	)

Net decrease in unrestricted and restricted cash and cash equivalents		(250	)		(279	)
Unrestricted and restricted cash and cash equivalents, beginning of period		941			995
Unrestricted and restricted cash and cash equivalents, end of period	$	691		$	716


TRANSOCEAN LTD. AND SUBSIDIARIES
FLEET OPERATING STATISTICS


	Three months ended
	March 31,		December 31,		March 31,
Contract Drilling Revenues (in millions)	2025		2024		2024
Ultra-deepwater floaters	$	658	$	675	$	569
Harsh environment floaters		248		277		194
Total contract drilling revenues	$	906	$	952	$	763

	Three months ended
	March 31,		December 31,		March 31,
Average Daily Revenue ⁽¹⁾	2025		2024		2024
Ultra-deepwater floaters	$	443,600	$	428,200	$	422,900
Harsh environment floaters		443,600		452,600		367,900
Total fleet average daily revenue	$	443,600	$	434,700	$	408,200

	Three months ended
	March 31,		December 31,		March 31,
Revenue Efficiency ⁽²⁾	2025		2024		2024
Ultra-deepwater floaters	94.3	%	92.0	%	92.7	%
Harsh environment floaters	99.3	%	97.6	%	93.3	%
Total fleet average revenue efficiency	95.5	%	93.5	%	92.9	%

	Three months ended
	March 31,		December 31,		March 31,
Utilization ⁽³⁾	2025		2024		2024
Ultra-deepwater floaters	61.5	%	64.3	%	51.2	%
Harsh environment floaters	69.5	%	75.0	%	62.0	%
Total fleet average rig utilization	63.4	%	66.8	%	53.7	%


⁽¹⁾ Average daily revenue is defined as operating revenues, excluding revenues for contract terminations, reimbursements and contract intangible amortization, earned per operating day. An operating day is defined as a day for which a rig is contracted to earn a dayrate during the firm contract period after operations commence.

⁽²⁾ Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations.

⁽³⁾ Rig utilization is defined as the total number of operating days divided by the total number of rig calendar days in the measurement period, expressed as a percentage.


TRANSOCEAN LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE
(in millions, except per share data)


	YTD
	03/31/25
Adjusted Net Loss
Net loss attributable to controlling interest, as reported	$	(79	)
Discrete tax items		14
Net loss, as adjusted	$	(65	)

Adjusted Diluted Loss Per Share:
Diluted loss per share, as reported	$	(0.11	)
Discrete tax items		0.01
Diluted loss per share, as adjusted	$	(0.10	)

	YTD			QTD			YTD			QTD			YTD			QTD			YTD
	12/31/24			12/31/24			09/30/24			09/30/24			06/30/24			06/30/24			03/31/24
Adjusted Net Income (Loss)
Net income (loss) attributable to controlling interest, as reported	$	(512	)	$	7		$	(519	)	$	(494	)	$	(25	)	$	(123	)	$	98
Loss on impairment of assets, net of tax		755			—			755			617			138			138			—
Loss on impairment of investment in unconsolidated affiliates		5			—			5			—			5			4			1
Gain on retirement of debt		(161	)		—			(161	)		(21	)		(140	)		(140	)		—
Discrete tax items		(141	)		20			(161	)		(38	)		(123	)		(2	)		(121	)
Net income (loss), as adjusted	$	(54	)	$	27		$	(81	)	$	64		$	(145	)	$	(123	)	$	(22	)

Adjusted Diluted Earnings (Loss) Per Share:
Diluted earnings (loss) per share, as reported	$	(0.76	)	$	(0.11	)	$	(0.65	)	$	(0.58	)	$	(0.03	)	$	(0.15	)	$	0.11
Loss on impairment of assets, net of tax		0.82			—			0.82			0.64			0.17			0.17			—
Loss on impairment of investment in unconsolidated affiliates		0.01			—			0.01			—			—			—			—
Gain on retirement of debt		(0.18	)		—			(0.18	)		(0.02	)		(0.17	)		(0.17	)		—
Discrete tax items		(0.15	)		0.02			(0.18	)		(0.04	)		(0.15	)		—			(0.14	)
Diluted earnings (loss) per share, as adjusted	$	(0.26	)	$	(0.09	)	$	(0.18	)	$	—		$	(0.18	)	$	(0.15	)	$	(0.03	)


TRANSOCEAN LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
ADJUSTED CONTRACT DRILLING REVENUES
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION AND RELATED MARGINS
(in millions, except percentages)


	YTD
	03/31/25

Contract drilling revenues	$	906

Net loss	$	(79	)
Interest expense, net of interest income		108
Income tax expense		39
Depreciation and amortization		176
EBITDA		244

Adjusted EBITDA	$	244


Loss margin		(8.7	)%
EBITDA margin		26.9	%
Adjusted EBITDA margin		26.9	%


	YTD			QTD			YTD			QTD			YTD			QTD			YTD
	12/31/24			12/31/24			09/30/24			09/30/24			06/30/24			06/30/24			03/31/24

Contract drilling revenues	$	3,524		$	952		$	2,572		$	948		$	1,624		$	861		$	763
Contract intangible asset amortization		4			—			4			—			4			—			4
Adjusted Contract Drilling Revenues	$	3,528		$	952		$	2,576		$	948		$	1,628		$	861		$	767

Net income (loss)	$	(512	)	$	7		$	(519	)	$	(494	)	$	(25	)	$	(123	)	$	98
Interest expense, net of interest income		312			81			231			69			162			60			102
Income tax expense (benefit)		(11	)		55			(66	)		(31	)		(35	)		156			(191	)
Depreciation and amortization		739			180			559			190			369			184			185
Contract intangible asset amortization		4			—			4			—			4			—			4
EBITDA		532			323			209			(266	)		475			277			198

Loss on impairment of assets		772			—			772			629			143			143			—
Loss on impairment of investment in unconsolidated affiliates		5			—			5			—			5			4			1
Gain on retirement of debt		(161	)		—			(161	)		(21	)		(140	)		(140	)		—
Adjusted EBITDA	$	1,148		$	323		$	825		$	342		$	483		$	284		$	199


Profit (loss) margin		(14.5	)%		0.7	%		(20.2	)%		(52.0	)%		(1.5	)%		(14.3	)%		12.9	%
EBITDA margin		15.1	%		33.9	%		8.1	%		(28.1	)%		29.2	%		32.2	%		25.8	%
Adjusted EBITDA margin		32.5	%		33.9	%		32.0	%		36.0	%		29.7	%		33.0	%		26.0	%



TRANSOCEAN LTD. AND SUBSIDIARIES
SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS
(in millions, except tax rates)


	Three months ended
	March 31,			December 31,			March 31,
	2025			2024			2024

Income (loss) before income taxes	$	(40	)	$	62		$	(93	)
Loss on impairment of investment in unconsolidated affiliates		—			—			1
Adjusted income (loss) before income taxes	$	(40	)	$	62		$	(92	)


Income tax expense (benefit)	$	39		$	55		$	(191	)
Loss on impairment of investment in unconsolidated affiliates		—			—			—
Changes in estimates (1)		(14	)		(20	)		121
Adjusted income tax expense (benefit)	$	25		$	35		$	(70	)

Effective Tax Rate (2)		(95.8	)%		89.0	%		206.0	%

Effective Tax Rate, excluding discrete items (3)		(62.3	)%		56.7	%		76.9	%


(1) Our estimates change as we file tax returns, settle disputes with tax authorities, or become aware of changes in laws, operational changes and rig movements that have an effect on our (a) deferred taxes, (b) valuation allowances on deferred taxes and (c) other tax liabilities.

(2) Our effective tax rate is calculated as income tax expense or benefit divided by income or loss before income taxes.

(3) Our effective tax rate, excluding discrete items, is calculated as income tax expense or benefit, excluding various discrete items (such as changes in estimates and tax on items excluded from income before income taxes), divided by income or loss before income taxes, excluding gains and losses on sales and similar items pursuant to the accounting standards for income taxes related to estimating the annual effective tax rate.


TRANSOCEAN LTD. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
FREE CASH FLOW AND LEVERED FREE CASH FLOW
(in millions)


																			YTD
																			03/31/25

Cash provided by operating activities																			$	26
Capital expenditures																				(60	)
Free Cash Flow																				(34	)
Debt repayments																				(210	)
Debt repayments, paid from debt proceeds																				–
Levered Free Cash Flow																			$	(244	)



	YTD			QTD			YTD			QTD			YTD			QTD			YTD
	12/31/24			12/31/24			09/30/24			09/30/24			06/30/24			06/30/24			03/31/24

Cash provided by (used in) operating activities	$	447		$	206		$	241		$	194		$	47		$	133		$	(86	)
Capital expenditures		(254	)		(29	)		(225	)		(58	)		(167	)		(84	)		(83	)
Free Cash Flow		193			177			16			136			(120	)		49			(169	)
Debt repayments		(2,103	)		(30	)		(2,073	)		(258	)		(1,815	)		(1,664	)		(151	)
Debt repayments, paid from debt proceeds		1,748			–			1,748			99			1,649			1,649			–
Levered Free Cash Flow	$	(162	)	$	147		$	(309	)	$	(23	)	$	(286	)	$	34		$	(320	)



	YTD			QTD			YTD			QTD			YTD			QTD			YTD
	12/31/23			12/31/23			09/30/23			09/30/23			06/30/23			06/30/23			03/31/23

Cash provided by (used in) operating activities	$	164		$	98		$	66		$	(44	)	$	110		$	157		$	(47	)
Capital expenditures		(427	)		(220	)		(207	)		(50	)		(157	)		(76	)		(81	)
Free Cash Flow		(263	)		(122	)		(141	)		(94	)		(47	)		81			(128	)
Debt repayments		(1,717	)		(10	)		(1,707	)		(139	)		(1,568	)		(4	)		(1,564	)
Debt repayments, paid from debt proceeds		1,156			–			1,156			–			1,156			–			1,156
Levered Free Cash Flow	$	(824	)	$	(132	)	$	(692	)	$	(233	)	$	(459	)	$	77		$	(536	)

The MIL Network –

April 29, 2025

MIL-OSI: RBB Bancorp Reports First Quarter 2025 Earnings

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, April 28, 2025 (GLOBE NEWSWIRE) — RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the “Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as the “Company,” announced financial results for the quarter ended March 31, 2025.

First Quarter 2025 Highlights

Net income totaled $2.3 million, or $0.13 diluted earnings per share
Return on average assets of 0.24%, compared to 0.44% for the quarter ended December 31, 2024
Net interest margin expanded to 2.88%, up from 2.76% for the quarter ended December 31, 2024
Net loans held for investment growth of $89.8 million, or 12% annualized
Nonperforming assets decreased $16.5 million, or 20.3%, to $64.6 million at March 31, 2025, down from $81.0 million at December 31, 2024
Book value and tangible book value per share⁽¹⁾ increased to $28.77 and $24.63 at March 31, 2025, up from $28.66 and $24.51 at December 31, 2024

The Company reported net income of $2.3 million, or $0.13 diluted earnings per share, for the quarter ended March 31, 2025, compared to net income of $4.4 million, or $0.25 diluted earnings per share, for the quarter ended December 31, 2024. First quarter of 2025 net income included $6.7 million in pre-tax provision for credit losses mostly related to reducing exposure to nonperforming loans, including higher specific reserves.

“First quarter net income declined to $2.3 million, or 13 cents per share, as we took decisive action to address our nonperforming loans,” said David Morris, Chief Executive Officer of RBB Bancorp. “We reduced our net exposure to nonperforming loans to $51 million, including specific reserves, or 32% since year end. We remain focused on resolving our nonperforming loans as quickly as possible while minimizing the impact to earnings and capital and we think our actions in the first quarter reflect this.”

“Our loan production was relatively strong during the first quarter driven by continued execution of our initiatives, which resulted in 12% annualized net loan growth. Our loan prospect pipeline continues to be healthy, and we anticipate loan growth to continue in the second quarter, albeit likely at a more moderate pace,” said Johnny Lee, President of RBB Bancorp and President and Chief Executive Officer of the Bank. “While the market environment is volatile, we have not observed significant signs of financial impact to our clients at this time.”

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Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.

Net Interest Income and Net Interest Margin

Net interest income was $26.2 million for the first quarter of 2025, compared to $26.0 million for the fourth quarter of 2024. The $186,000 increase was due to a $2.4 million decrease in interest expense, offset by a $2.2 million decrease in interest income. The decrease in interest income was mostly due to the impact of fewer days in the quarter of $1.2 million and lower average excess liquidity (cash and cash equivalents and investment securities) of $1.5 million. The decrease in interest expense was mostly due to the impact of lower average funding rates of $1.5 million, fewer days in the quarter of $621,000 and lower average interest-bearing liabilities of $336,000. The $1.5 million attributed to lower average funding rates included $1.8 million due to a 29 basis point decrease in the average cost of interest-bearing deposits.

The net interest margin (“NIM”) was 2.88% for the first quarter of 2025, an increase of 12 basis points from 2.76% for the fourth quarter of 2024. The NIM expansion was due to a 17 basis point decrease in the overall cost of funds, partially offset by a 3 basis point decrease in the yield on average interest-earning assets. The yield on average interest-earning assets decreased to 5.76% for the first quarter of 2025 from 5.79% for the fourth quarter of 2024 due mainly to a decrease in the yield on average cash and cash equivalents of 32 basis points and average loans of 2 basis points, partially offset by the benefit of a change in the mix in average-earning assets. Average loans represented 84% of average interest-earning assets in the first quarter of 2025, as compared to 82% in the fourth quarter of 2024.

The average cost of funds decreased to 3.15% for the first quarter of 2025 from 3.32% for the fourth quarter of 2024, driven by a 29 basis point decrease in the average cost of interest-bearing deposits, partially offset by a 38 basis point increase in the average cost of borrowings. The average cost of interest-bearing deposits decreased to 3.77% for the first quarter of 2025 from 4.06% for the fourth quarter of 2024. During the first quarter of 2025, $150.0 million in Federal Home Loan Bank (“FHLB”) advances with an average cost of 1.18% matured and were largely replaced with $110.0 million in FHLB advances with various terms at an average rate of 3.88%. The overall funding mix for the first quarter of 2025 remained relatively unchanged from the fourth quarter of 2024 with total deposits representing 90% of the funding mix and average noninterest-bearing deposits representing 17% of average total deposits. The all-in average spot rate for total deposits was 3.06% at March 31, 2025.

Provision for Credit Losses

The provision for credit losses was $6.7 million for the first quarter of 2025 compared to $6.0 million for the fourth quarter of 2024. The first quarter of 2025 provision for credit losses was due to an increase in specific reserves of $2.8 million, net charge-offs of $2.6 million and an increase in general reserves of $1.3 million due mainly to net loan growth. The first quarter increase in specific reserves related mostly to two lending relationships. Net charge-offs included $1.4 million related to a bulk sale of $10.8 million in underperforming single-family residential (“SFR”) mortgage loans, of which $6.5 million were on nonaccrual at the end of the year, and $1.2 million related to an $8.8 million loan transferred to other real estate owned (“OREO”) and subsequently sold. Net charge-offs on an annualized basis represented 0.35% of average loans for the first quarter of 2025 compared to 0.26% for the fourth quarter of 2024. The first quarter provision also took into consideration factors such as changes in loan balances, the loan portfolio mix, the outlook for economic conditions and market interest rates, and changes in credit quality metrics, including changes in nonperforming loans, special mention and substandard loans during the period.

Noninterest Income

Noninterest income for the first quarter of 2025 was $2.3 million, a decrease of $434,000 from $2.7 million for the fourth quarter of 2024. This decrease was mostly due to the fourth quarter of 2024 including $258,000 of income from a Bank Enterprise Award grant (included in other income) and lower net gain on sale of loans as compared to the fourth quarter of 2024.

Noninterest Expense

Noninterest expense for the first quarter of 2025 was $18.5 million, an increase of $873,000 from $17.6 million for the fourth quarter of 2024. This increase was mostly due to higher salaries and employee benefits expense of $716,000 attributed to higher payroll taxes and annual pay increases, which are typically reflected in the first quarter of the year. The annualized noninterest expenses to average assets ratio was 1.90% for the first quarter of 2025, up from 1.76% for the fourth quarter of 2024. The efficiency ratio was 65.1% for the first quarter of 2025, up from 61.5% for the fourth quarter of 2024 due mostly to higher noninterest expense.

Income Taxes

The effective tax rate was 28.2% for the first quarter of 2025 and 13.3% for the fourth quarter of 2024. The increase in the effective tax rate for the first quarter was due in part to lower tax credits combined with higher estimated pre-tax net income for the full year of 2025 as compared to the prior quarter.2

Balance Sheet

At March 31, 2025, total assets were $4.0 billion, a $16.9 million increase compared to December 31, 2024, and a $131.4 million increase compared to March 31, 2024.

Loan and Securities Portfolio

Loans held for investment (“HFI”) totaled $3.1 billion as of March 31, 2025, an increase of $89.8 million, or 12% annualized, compared to December 31, 2024 and an increase of $115.7 million, or 3.8%, compared to March 31, 2024. The first quarter of 2025 net loan growth included $201 million in new production with an average yield of 6.77%. When loan sales, charge-offs, and foreclosures totaling $28.6 million are considered, the annualized first quarter net loan growth rate was 16%. The increase from December 31, 2024 was primarily due to a $51.8 million increase in SFR mortgage loans, a $44.0 million increase in commercial real estate (“CRE”) loans, a $6.0 million increase in commercial and industrial (“C&I”) loans and a $3.4 million increase in Small Business Administration (“SBA”) loans, partially offset by a $14.4 million decrease in construction and land development (“C&D”) loans. The loan to deposit ratio was 98.4% at March 31, 2025, compared to 97.5% at December 31, 2024 and 98.6% at March 31, 2024.

As of March 31, 2025, available for sale securities totaled $378.2 million, a decrease of $42.0 million from December 31, 2024, primarily related to the net decrease in short-term commercial paper of $41.4 million due to maturity and purchase activity during the first quarter of 2025. As of March 31, 2025, net unrealized losses totaled $25.0 million, a $4.2 million decrease, when compared to net unrealized losses of $29.2 million as of December 31, 2024.

Deposits

Total deposits were $3.1 billion as of March 31, 2025, an increase of $58.8 million, or 7.7% annualized, compared to December 31, 2024 and an increase of $114.3 million, or 3.8%, compared to March 31, 2024. The increase during the first quarter of 2025 was due to a $93.6 million increase in interest-bearing deposits, while noninterest-bearing deposits decreased $34.8 million. The increase in interest-bearing deposits included increases in non-maturity deposits of $58.2 million and time deposits of $35.5 million. Wholesale deposits totaled $158.5 million at March 31, 2025, and $147.5 million at December 31, 2024. Noninterest-bearing deposits totaled $528.2 million and represented 16.8% of total deposits at March 31, 2025 compared to $563.0 million and 18.3% at December 31, 2024.

Credit Quality

Nonperforming assets totaled $64.6 million, or 1.61% of total assets, at March 31, 2025, down from $81.0 million, or 2.03% of total assets, at December 31, 2024. The $16.5 million decrease in nonperforming assets was due to sales totaling $20.0 million and payoffs or paydowns of $1.8 million, partially offset by the addition of one $5.3 million CRE loan placed on nonaccrual status in the first quarter of 2025. Nonperforming assets included one $4.2 million OREO (included in “Accrued interest and other assets”) at March 31, 2025, which was a nonaccrual loan at December 31, 2024.

Special mention loans totaled $64.3 million, or 2.05% of total loans, at March 31, 2025, down from $65.3 million, or 2.14% of total loans, at December 31, 2024. The $1.1 million decrease was primarily due to the upgrade of one $1.7 million CRE loan to a pass-rated loan, offset by the addition of one $578,000 C&I loan. All special mention loans are paying current.

Substandard loans totaled $76.4 million at March 31, 2025, down from $100.3 million at December 31, 2024. This $24.0 million decrease was primarily due to loan sales totaling $11.7 million, transfers to OREO totaling $12.8 million, of which $8.8 million was subsequently sold during the first quarter of 2025, and payoffs and paydowns totaling $5.4 million, partially offset by the downgrade of two loans totaling $6.2 million. Of the total substandard loans at March 31, 2025, there were $16.0 million on accrual status.

30-89 day delinquent loans, excluding nonperforming loans, totaled $5.9 million, or 0.19% of total loans, at March 31, 2025, down from $22.1 million, or 0.72% of total loans, at December 31, 2024. The $16.2 million decrease was mostly due to $16.3 million in loans returning to current status, $2.9 million in SFR mortgage loans included in the bulk sale of several underperforming SFR mortgage loans and $398,000 in paydowns and payoffs, offset by $3.5 million in new delinquent loans.3

As of March 31, 2025, the allowance for credit losses totaled $52.6 million and was comprised of an allowance for loan losses of $51.9 million and a reserve for unfunded commitments of $629,000 (included in “Accrued interest and other liabilities”). This compares to the allowance for credit losses of $48.5 million, comprised of an allowance for loan losses of $47.7 million and a reserve for unfunded commitments of $729,000 at December 31, 2024. The $4.1 million increase in the allowance for credit losses for the first quarter of 2025 was due to a $6.7 million provision for credit losses offset by net charge-offs of $2.6 million. Net charge-offs included $1.4 million related to a bulk sale of $10.8 million in underperforming SFR mortgage loans, of which $6.5 million were on nonaccrual at the end of the year, and $1.2 million related to an $8.8 million loan transferred to OREO and subsequently sold. The allowance for loan losses as a percentage of loans HFI increased to 1.65% at March 31, 2025, compared to 1.56% at December 31, 2024, due to an increase in specific reserves. The allowance for loan losses as a percentage of nonperforming loans HFI was 86% at March 31, 2025, an increase from 68% at December 31, 2024.

	For the Three Months Ended March 31, 2025
*(dollars in thousands)*	Allowance for loan losses			Reserve for unfunded loan commitments			Allowance for credit losses
Beginning balance	$	47,729		$	729		$	48,458
Provision for (reversal of) credit losses		6,846			(100	)		6,746
Less loans charged-off		(2,727	)		—			(2,727	)
Recoveries on loans charged-off		84			—			84
Ending balance	$	51,932		$	629		$	52,561

Shareholders’ Equity

At March 31, 2025, total shareholders’ equity was $510.3 million, a $2.4 million increase compared to December 31, 2024, and a $3.7 million decrease compared to March 31, 2024. The increase in shareholders’ equity for the first quarter of 2025 was due to lower net unrealized losses on available for sale securities of $3.0 million, net income of $2.3 million and equity compensation activity of $43,000, offset by common stock cash dividends paid of $2.9 million. The decrease in shareholders’ equity for the last twelve months was due to common stock repurchases of $19.2 million and dividends paid of $11.6 million on common stock, offset by net income of $20.9 million, lower net unrealized losses on available for sale securities of $3.7 million, and equity compensation activity of $2.5 million. Book value per share and tangible book value per share⁽¹⁾ increased to $28.77 and $24.63 at March 31, 2025, up from $28.66 and $24.51 at December 31, 2024 and up from $27.67 and $23.68 at March 31, 2024.

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)

Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.

Corporate Overview

RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of March 31, 2025, the Company had total assets of $4.0 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services predominately to the Asian-centric communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company’s administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company’s website address is www.royalbusinessbankusa.com.

Conference Call

Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, April 29, 2025, to discuss the Company’s first quarter 2025 financial results.

To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, the Participant ID code is 534591, conference ID RBBQ125. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 52277, approximately one hour after the conclusion of the call and will remain available through May 13, 2025.

The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at www.royalbusinessbankusa.com and click on the “Investors” tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.

Disclosure

This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

Safe Harbor

Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures; the potential for additional material weaknesses in the Company’s internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been detected; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the United States (“U.S.”) federal budget or debt or turbulence or uncertainly in domestic or foreign financial markets; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; failure to comply with debt covenants; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; severe weather, natural disasters, earthquakes, fires, including direct and indirect costs and impacts on clients, the Company and its employees from the January 2025 Los Angeles County wildfires; or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia and Ukraine, in the Middle East, and increasing tensions between China and Taiwan, which could impact business and economic conditions in the U.S. and abroad; tariffs, trade policies, and related tensions, which could impact our clients, specific industry sectors, and/or broader economic conditions and financial market; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions; general economic or business conditions in Asia, and other regions where the Bank has operations; failures, interruptions, or security breaches of our information systems; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the cost of defending against them; our ability to adapt our systems to the expanding use of technology in banking; risk management processes and strategies; adverse results in legal proceedings; the impact of regulatory enforcement actions, if any; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in tax laws and regulations; the impact of governmental efforts to restructure the U.S. financial regulatory system and increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; the impact of changes in the Federal Deposit Insurance Corporation (“FDIC”) insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessments; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; fluctuations in the Company’s stock price; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California Department of Financial Protection and Innovation; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2024, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

RBB BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
Assets
Cash and due from banks	$	25,315		$	27,747		$	26,388		$	23,313		$	21,887
Interest-earning deposits with financial institutions		213,508			229,998			323,002			229,456			247,356
Cash and cash equivalents		238,823			257,745			349,390			252,769			269,243
Interest-earning time deposits with financial institutions		600			600			600			600			600
Investment securities available for sale		378,188			420,190			305,666			325,582			335,194
Investment securities held to maturity		5,188			5,191			5,195			5,200			5,204
Loans held for sale		655			11,250			812			3,146			3,903
Loans held for investment		3,143,063			3,053,230			3,091,896			3,047,712			3,027,361
Allowance for loan losses		(51,932	)		(47,729	)		(43,685	)		(41,741	)		(41,688	)
Net loans held for investment		3,091,131			3,005,501			3,048,211			3,005,971			2,985,673
Premises and equipment, net		24,308			24,601			24,839			25,049			25,363
Federal Home Loan Bank (FHLB) stock		15,000			15,000			15,000			15,000			15,000
Cash surrender value of bank owned life insurance		60,699			60,296			59,889			59,486			59,101
Goodwill		71,498			71,498			71,498			71,498			71,498
Servicing assets		6,766			6,985			7,256			7,545			7,794
Core deposit intangibles		1,839			2,011			2,194			2,394			2,594
Right-of-use assets		26,779			28,048			29,283			30,530			31,231
Accrued interest and other assets		87,926			83,561			70,644			63,416			65,608
Total assets	$	4,009,400		$	3,992,477		$	3,990,477		$	3,868,186		$	3,878,006
Liabilities and shareholders’ equity
Deposits:
Noninterest-bearing demand	$	528,205		$	563,012		$	543,623		$	542,971		$	539,517
Savings, NOW and money market accounts		721,216			663,034			666,089			647,770			642,840
Time deposits, $250,000 and under		1,000,106			1,007,452			1,052,462			1,014,189			1,083,898
Time deposits, greater than $250,000		893,101			850,291			830,010			818,675			762,074
Total deposits		3,142,628			3,083,789			3,092,184			3,023,605			3,028,329
FHLB advances		160,000			200,000			200,000			150,000			150,000
Long-term debt, net of issuance costs		119,624			119,529			119,433			119,338			119,243
Subordinated debentures		15,211			15,156			15,102			15,047			14,993
Lease liabilities – operating leases		28,483			29,705			30,880			32,087			32,690
Accrued interest and other liabilities		33,148			36,421			23,150			16,818			18,765
Total liabilities		3,499,094			3,484,600			3,480,749			3,356,895			3,364,020
Shareholders’ equity:
Common stock		260,284			259,957			259,280			266,160			271,645
Additional paid-in capital		3,360			3,645			3,520			3,456			3,348
Retained earnings		263,885			264,460			262,946			262,518			259,903
Non-controlling interest		72			72			72			72			72
Accumulated other comprehensive loss, net		(17,295	)		(20,257	)		(16,090	)		(20,915	)		(20,982	)
Total shareholders’ equity		510,306			507,877			509,728			511,291			513,986
Total liabilities and shareholders’ equity	$	4,009,400		$	3,992,477		$	3,990,477		$	3,868,186		$	3,878,006

RBB BANCORP AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
*(In thousands, except share and per share data)*

	For the Three Months Ended
	March 31, 2025		December 31, 2024		March 31, 2024
Interest and dividend income:
Interest and fees on loans	$	45,621	$	46,374	$	45,547
Interest on interest-earning deposits		2,014		3,641		5,040
Interest on investment securities		4,136		3,962		3,611
Dividend income on FHLB stock		330		330		331
Interest on federal funds sold and other		235		248		266
Total interest and dividend income		52,336		54,555		54,795
Interest expense:
Interest on savings deposits, NOW and money market accounts		4,468		4,671		4,478
Interest on time deposits		19,084		21,361		23,322
Interest on long-term debt and subordinated debentures		1,632		1,660		1,679
Interest on FHLB advances		989		886		439
Total interest expense		26,173		28,578		29,918
Net interest income before provision for credit losses		26,163		25,977		24,877
Provision for credit losses		6,746		6,000		—
Net interest income after provision for credit losses		19,417		19,977		24,877
Noninterest income:
Service charges and fees		1,017		988		992
Gain on sale of loans		81		376		312
Loan servicing fees, net of amortization		588		492		589
Increase in cash surrender value of life insurance		403		407		382
Gain on OREO		—		—		724
Other income		206		466		373
Total noninterest income		2,295		2,729		3,372
Noninterest expense:
Salaries and employee benefits		10,643		9,927		9,927
Occupancy and equipment expenses		2,407		2,403		2,443
Data processing		1,602		1,499		1,420
Legal and professional		1,515		1,355		880
Office expenses		408		399		356
Marketing and business promotion		197		251		172
Insurance and regulatory assessments		730		677		982
Core deposit premium		172		182		201
Other expenses		848		956		588
Total noninterest expense		18,522		17,649		16,969
Income before income taxes		3,190		5,057		11,280
Income tax expense		900		672		3,244
Net income	$	2,290	$	4,385	$	8,036

Net income per share
Basic	$	0.13	$	0.25	$	0.43
Diluted	$	0.13	$	0.25	$	0.43
Cash dividends declared per common share	$	0.16	$	0.16	$	0.16
Weighted-average common shares outstanding
Basic		17,727,712		17,704,992		18,601,277
Diluted		17,770,588		17,796,840		18,666,683

RBB BANCORP AND SUBSIDIARIES
AVERAGE BALANCE SHEET AND NET INTEREST INCOME
(Unaudited)

	For the Three Months Ended
	March 31, 2025							December 31, 2024							March 31, 2024
(tax-equivalent basis,	Average		Interest		Yield /			Average		Interest		Yield /			Average		Interest		Yield /
*dollars in thousands)*	Balance		& Fees		Rate			Balance		& Fees		Rate			Balance		& Fees		Rate
Interest-earning assets
Cash and cash equivalents ⁽¹⁾	$	194,236	$	2,249		4.70	%	$	308,455	$	3,890		5.02	%	$	364,979	$	5,306		5.85	%
FHLB Stock		15,000		330		8.92	%		15,000		330		8.75	%		15,000		331		8.88	%
Securities
Available for sale ⁽²⁾		390,178		4,113		4.28	%		361,253		3,939		4.34	%		320,015		3,589		4.51	%
Held to maturity ⁽²⁾		5,189		49		3.83	%		5,194		48		3.68	%		5,207		46		3.55	%
Total loans ⁽³⁾		3,079,224		45,621		6.01	%		3,059,786		46,374		6.03	%		3,018,423		45,547		6.07	%
Total interest-earning assets		3,683,827	$	52,362		5.76	%		3,749,688	$	54,581		5.79	%		3,723,624	$	54,819		5.92	%
Total noninterest-earning assets		260,508							244,609							246,341
Total average assets	$	3,944,335						$	3,994,297						$	3,969,965

Interest-bearing liabilities
NOW		61,222		321		2.13	%	$	53,879	$	254		1.88	%	$	58,946	$	298		2.03	%
Money market		463,443		3,625		3.17	%		463,850		3,735		3.20	%		411,751		3,526		3.44	%
Saving deposits		155,116		522		1.36	%		162,351		682		1.67	%		157,227		654		1.67	%
Time deposits, $250,000 and under		989,622		10,046		4.12	%		1,034,946		11,583		4.45	%		1,175,804		13,805		4.72	%
Time deposits, greater than $250,000		864,804		9,038		4.24	%		835,583		9,778		4.66	%		785,172		9,517		4.88	%
Total interest-bearing deposits		2,534,207		23,552		3.77	%		2,550,609		26,032		4.06	%		2,588,900		27,800		4.32	%
FHLB advances		176,833		989		2.27	%		200,000		886		1.76	%		150,000		439		1.18	%
Long-term debt		119,562		1,295		4.39	%		119,466		1,295		4.31	%		119,180		1,295		4.37	%
Subordinated debentures		15,175		337		9.01	%		15,121		365		9.60	%		14,957		384		10.33	%
Total interest-bearing liabilities		2,845,777		26,173		3.73	%		2,885,196		28,578		3.94	%		2,873,037		29,918		4.19	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		520,145							539,900							528,346
Other noninterest-bearing liabilities		66,151							56,993							55,795
Total noninterest-bearing liabilities		586,296							596,893							584,141
Shareholders’ equity		512,262							512,208							512,787
Total liabilities and shareholders’ equity	$	3,944,335						$	3,994,297						$	3,969,965
Net interest income / interest rate spreads			$	26,189		2.03	%			$	26,003		1.85	%			$	24,901		1.73	%
Net interest margin						2.88	%						2.76	%						2.69	%

Total cost of deposits	$	3,054,352	$	23,552		3.13	%	$	3,090,509	$	26,032		3.35	%	$	3,117,246	$	27,800		3.59	%
Total cost of funds	$	3,365,922	$	26,173		3.15	%	$	3,425,096	$	28,578		3.32	%	$	3,401,383	$	29,918		3.54	%

(1	)	Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
(2	)	Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
(3	)	Average loan balances relate to loans held for investment and loans held for sale and include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.

RBB BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)

	At or for the Three Months Ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Per share data (common stock)
Book value	$	28.77		$	28.66		$	27.67
Tangible book value ⁽¹⁾	$	24.63		$	24.51		$	23.68
Performance ratios
Return on average assets, annualized		0.24	%		0.44	%		0.81	%
Return on average shareholders’ equity, annualized		1.81	%		3.41	%		6.30	%
Return on average tangible common equity, annualized ⁽¹⁾		2.12	%		3.98	%		7.37	%
Noninterest income to average assets, annualized		0.24	%		0.27	%		0.34	%
Noninterest expense to average assets, annualized		1.90	%		1.76	%		1.72	%
Yield on average earning assets		5.76	%		5.79	%		5.92	%
Yield on average loans		6.01	%		6.03	%		6.07	%
Cost of average total deposits ⁽²⁾		3.13	%		3.35	%		3.59	%
Cost of average interest-bearing deposits		3.77	%		4.06	%		4.32	%
Cost of average interest-bearing liabilities		3.73	%		3.94	%		4.19	%
Net interest spread		2.03	%		1.85	%		1.73	%
Net interest margin		2.88	%		2.76	%		2.69	%
Efficiency ratio ⁽³⁾		65.09	%		61.48	%		60.07	%
Common stock dividend payout ratio		123.08	%		64.00	%		37.21	%

(1	)	Non-GAAP measure. See Non–GAAP reconciliations set forth at the end of this press release.
(2	)	Total deposits include non-interest bearing deposits and interest-bearing deposits.
(3	)	Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income.

RBB BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
*(Dollars in thousands)*

	At or for the quarter ended
	March 31,			December 31,			March 31,
	2025			2024			2024
Credit Quality Data:
Special mention loans	$	64,279		$	65,329		$	20,580
Special mention loans to total loans		2.05	%		2.14	%		0.68	%
Substandard loans HFI	$	76,372		$	89,141		$	57,170
Substandard loans HFS	$	—		$	11,195		$	—
Substandard loans HFI to total loans HFI		2.43	%		2.92	%		1.89	%
Loans 30-89 days past due, excluding nonperforming loans	$	5,927		$	22,086		$	20,950
Loans 30-89 days past due, excluding nonperforming loans, to total loans		0.19	%		0.72	%		0.69	%
Nonperforming loans HFI	$	60,380		$	69,843		$	35,935
Nonperforming loans HFS	$	—		$	11,195		$	—
OREO	$	4,170		$	—		$	1,071
Nonperforming assets	$	64,550		$	81,038		$	37,006
Nonperforming loans HFI to total loans HFI		1.92	%		2.29	%		1.19	%
Nonperforming assets to total assets		1.61	%		2.03	%		0.95	%

Allowance for loan losses	$	51,932		$	47,729		$	41,688
Allowance for loan losses to total loans HFI		1.65	%		1.56	%		1.38	%
Allowance for loan losses to nonperforming loans HFI		86.01	%		68.34	%		116.01	%
Net charge-offs	$	2,643		$	2,006		$	184
Net charge-offs to average loans		0.35	%		0.26	%		0.02	%

Capital ratios ⁽¹⁾
Tangible common equity to tangible assets ⁽²⁾		11.10	%		11.08	%		11.56	%
Tier 1 leverage ratio		12.07	%		11.92	%		12.16	%
Tier 1 common capital to risk-weighted assets		17.87	%		17.94	%		19.10	%
Tier 1 capital to risk-weighted assets		18.45	%		18.52	%		19.72	%
Total capital to risk-weighted assets		24.41	%		24.49	%		25.91	%

(1	)	March 31, 2025 capital ratios are preliminary.
(2	)	Non-GAAP measure. See Non-GAAP reconciliations set forth at the end of this press release.

RBB BANCORP AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)

Loan Portfolio Detail	As of March 31, 2025					As of December 31, 2024						As of March 31, 2024
*(dollars in thousands)*	$			%		$			%			$			%
Loans:
Commercial and industrial	$	135,538		4.3	%	$	129,585			4.2	%	$	121,441			4.0	%
SBA		50,651		1.6	%		47,263			1.5	%		54,677			1.8	%
Construction and land development		158,883		5.1	%		173,290			5.7	%		198,070			6.5	%
Commercial real estate ⁽¹⁾		1,245,402		39.6	%		1,201,420			39.3	%		1,178,498			38.9	%
Single-family residential mortgages		1,545,822		49.2	%		1,494,022			48.9	%		1,463,497			48.4	%
Other loans		6,767		0.2	%		7,650			0.4	%		11,178			0.4	%
Total loans ⁽²⁾	$	3,143,063		100.0	%	$	3,053,230			100.0	%	$	3,027,361			100.0	%
Allowance for loan losses		(51,932	)				(47,729	)					(41,688	)
Total loans, net	$	3,091,131				$	3,005,501					$	2,985,673

(1	)	Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans.
(2	)	Net of discounts and deferred fees and costs of $808, $488, and $474 as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

Deposits	As of March 31, 2025				As of December 31, 2024					As of March 31, 2024
*(dollars in thousands)*	$		%		$		%			$		%
Deposits:
Noninterest-bearing demand	$	528,205	16.8	%	$	563,012		18.3	%	$	539,517		17.8	%
Savings, NOW and money market accounts		721,216	22.9	%		663,034		21.5	%		642,840		21.2	%
Time deposits, $250,000 and under		863,962	27.5	%		882,438		28.6	%		901,738		29.8	%
Time deposits, greater than $250,000		870,708	27.8	%		827,854		26.8	%		746,611		24.7	%
Wholesale deposits ⁽¹⁾		158,537	5.0	%		147,451		4.8	%		197,623		6.5	%
Total deposits	$	3,142,628	100.0	%	$	3,083,789		100.0	%	$	3,028,329		100.0	%

(1

)

Includes brokered deposits, collateralized deposits from the State of California, and deposits acquired through internet listing services.

Non-GAAP Reconciliations

Tangible Book Value Reconciliations

Tangible book value per share is a non-GAAP disclosure. Management measures tangible book value per share to assess the Company’s capital strength and business performance and believes this is helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of March 31, 2025, December 31, 2024, and March 31, 2024.


*(dollars in thousands, except share and per share data)*	March 31, 2025			December 31, 2024			March 31, 2024
Tangible common equity:
Total shareholders’ equity	$	510,306		$	507,877		$	513,986
Adjustments
Goodwill		(71,498	)		(71,498	)		(71,498	)
Core deposit intangible		(1,839	)		(2,011	)		(2,594	)
Tangible common equity	$	436,969		$	434,368		$	439,894
Tangible assets:
Total assets-GAAP	$	4,009,400		$	3,992,477		$	3,878,006
Adjustments
Goodwill		(71,498	)		(71,498	)		(71,498	)
Core deposit intangible		(1,839	)		(2,011	)		(2,594	)
Tangible assets	$	3,936,063		$	3,918,968		$	3,803,914
Common shares outstanding		17,738,628			17,720,416			18,578,132
Common equity to assets ratio		12.73	%		12.72	%		13.25	%
Tangible common equity to tangible assets ratio		11.10	%		11.08	%		11.56	%
Book value per share	$	28.77		$	28.66		$	27.67
Tangible book value per share	$	24.63		$	24.51		$	23.68

Return on Average Tangible Common Equity

Management measures return on average tangible common equity (“ROATCE”) to assess the Company’s capital strength and business performance and believes this is helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights) and is reviewed by banking and financial institution regulators when assessing a financial institution’s capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure:

	Three Months Ended
*(dollars in thousands)*	March 31, 2025			December 31, 2024			March 31, 2024
Net income available to common shareholders	$	2,290		$	4,385		$	8,036
Average shareholders’ equity		512,262			512,208			512,787
Adjustments:
Average goodwill		(71,498	)		(71,498	)		(71,498	)
Average core deposit intangible		(1,951	)		(2,129	)		(2,726	)
Adjusted average tangible common equity	$	438,813		$	438,581		$	438,563
Return on average common equity, annualized		1.81	%		3.41	%		6.30	%
Return on average tangible common equity, annualized		2.12	%		3.98	%		7.37	%

The MIL Network –

April 29, 2025

MIL-Evening Report: How ICE is becoming a secret police force under the Trump administration

Source: The Conversation (Au and NZ) – By Lee Morgenbesser, Associate Professor, School of Government and International Relations, Griffith University

Secret police are a quintessential feature of authoritarian regimes. From Azerbaijan’s State Security Service to Zimbabwe’s Central Intelligence Organisation, these agencies typically target political opponents and dissidents through covert surveillance, imprisonment and physical violence.

In contrast to the regular police and armed forces, secret police primarily use preemptive repression to thwart threats to the government.

In Nazi Germany, for example, Gestapo informants penetrated all levels of society, producing an atmosphere of distrust among those against Adolf Hitler. In Uganda, Idi Amin’s State Research Bureau employed sophisticated spying equipment and intercepted mail at the post office to root out supposed saboteurs.

In Syria, Bashar al-Assad relied on the General Intelligence Directorate to oversee a network of torture centres. And in Venezuela, Nicolás Maduro has used the Bolivarian National Intelligence Service (Sebin) to spy on opponents overseas, often running operations out of diplomatic missions.

Since US President Donald Trump took power in January, Immigration and Customs Enforcement (ICE) has become a far more visible and fearsome force on American streets.

Though ICE is ostensibly still bound by constitutional limits, the way it has been operating bears the hallmarks of a secret police force in the making.

As an expert on authoritarian regimes, I’ve studied historical and contemporary secret police forces extensively across Africa, Asia and Europe. They typically meet five criteria:

they’re a police force targeting political opponents and dissidents
they’re not controlled by other security agencies and answer directly to the dictator
the identity of their members and their operations are secret
they specialise in political intelligence and surveillance operations
they carry out arbitrary searches, arrests, interrogations, indefinite detentions, disappearances and torture.

How close is ICE to becoming a secret police force? Let’s consider each of these criteria.

Targeting dissidents

ICE has used the pretext of combating antisemitism to target dissidents. A branch of the agency previously used to target drug smugglers and human traffickers has reportedly been directed to scan social media for posts sympathetic to Hamas.

On March 8, ICE arrested the prominent pro-Palestinian activist Mahmoud Khalil, a legal resident. It was a similar story for Rumeysa Ozturk, a university student grabbed off the street on March 25 by ICE agents.

Trump has cited the Immigration and Nationality Act of 1952 as the legal pretext for ICE’s actions in these cases and others. The law allows the US government to deport anyone whose presence has “adverse foreign policy consequences” for the country.

Because Khalil and others are being targeted for their activism, legal scholars say the government appears to be “retaliating” against constitutionally protected free speech it disagrees with.

Directly controlled by a dictator

While ICE does not report directly to Trump, the agency is controlled by people who have shown intense loyalty to him.

ICE is part of the Department of Homeland Security, which is overseen by stalwart Trump ally Kristi Noem. She is supported by Tom Homan, a former ICE director who Trump appointed as his “border czar” in November 2024.

Despite a court order barring the deportations of alleged Venezuelan gang members to a prison in El Salvador, Homan has remained defiant:

We are not stopping. I don’t care what the judges think.

The pertinent question now is whether Noem or Homan would refuse to follow a dictate from Trump in the face of a direct court order.

Opaque operations

ICE agents are increasingly operating in secret. The individuals who took Ozturk off the street in a widely shared video claimed to be police officers, even though they were in plain clothes and face marks.

Similarly, ICE agents in plain clothes detained two men during a raid on a courthouse in Charlottesville, Virginia, on April 22. When two bystanders asked to see a warrant, they were ordered not to “impede” the agents’ lawful duties. ICE later said the two women would be prosecuted.

Also last week, ICE agents attempted to arrest a man at a Wisconsin courthouse without a warrant. After a judge intervened, she was arrested herself by the FBI and charged with two felonies.

This shroud of opacity has been accompanied by an end to local agency liaison meetings aimed at helping people seek answers to ICE’s actions.

Surveillance capabilities

ICE is organised into two distinct law enforcement components, giving it both political intelligence gathering and surveillance capabilities.

Its Homeland Security Investigations arm includes an intelligence division, while its Enforcement and Removal Operations arm uses third-party companies such as Geo Group, Giant Oak, and Palantir to conduct mass surveillance.

Most worryingly, ICE is trying to procure greater intelligence and surveillance capabilities by soliciting pitches from private companies to monitor threats across the internet.

According to a procurement document, contractors would be directed to focus on the backgrounds of social media users and use facial recognition capabilities to gather information on people. Criticisms of ICE itself would be monitored, too.

Unlawful policing

There has been a stream of reports exposing how ICE is conducting arbitrary searches, arrests, interrogations, and indefinite detentions.

Some of the most egregious reported examples include:

entering primary schools under false pretences in search of undocumented students
carrying out “collateral arrests”, that is detaining people not previously identified as targets during operations
detaining tourists and visa holders for weeks for unknown reasons
and disappearing US citizens without any meaningful process.

Since Trump’s inauguration, at least three people have died in ICE detention facilities, the latest in a string of fatalities in recent years.

Prolonged solitary confinement is reportedly widespread. UN experts say this can amount to torture.

Potentially expanded scope

Overall, the evidence shows ICE meets most of the criteria for being a secret police force. It has yet to target political opponents, which I define narrowly as members of the Democratic Party. And it is not directly controlled by Trump, although the current structure provides him with plausible deniability.

While the agency is far from resembling history’s most feared secret police forces, there have so far been few constraints on how it operates.

The worst may be yet to come. A budget bill making its way through Congress would provide ICE with up to US$175 billion (A$274 billion) in funding over the next decade. (Its current annual budget is US$9 billion, or A$14 billion.) This would supercharge its use of surveillance, imprisonment and physical violence.

When combined with a potential shift towards targeting US citizens for dissent and disobedience, ICE is fast becoming a key piece in the repressive apparatus of American authoritarianism.

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

– ref. How ICE is becoming a secret police force under the Trump administration – https://theconversation.com/how-ice-is-becoming-a-secret-police-force-under-the-trump-administration-255019

MIL OSI Analysis – EveningReport.nz –

April 29, 2025

MIL-OSI Security: Accountant Pleads Guilty to $8M Tax Fraud

Source: United States Attorneys General 6

A Colorado man pleaded guilty today to conspiring to defraud the United States and tax evasion.

According to court documents and statements made in court, Rodney Ermel owned and managed a Colorado-based accounting firm. Along with co-defendant Kenneth Bacon, Ermel provided accounting and tax preparation services for Joseph LaForte and his entities. Ermel conspired with LaForte, Bacon, and others to hide approximately $20 million in income. He did this through various fraudulent accounting practices, such as fabricating shareholder loans and “bad debt” deductions. Ermel also filed tax returns which he knew underreported taxable income by over $20 million between 2016 and 2018. Ermel’s fraud caused a loss to the United States of over $8 million.

Ermel is the fourth defendant to plead guilty to criminal conduct related to this tax scheme. Sentencing is scheduled for Sept. 3.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney David Metcalf for the Eastern District of Pennsylvania made the announcement.

The FBI, IRS Criminal Investigation and the Federal Deposit Insurance Corporation Office of Inspector General are investigating the case.

Assistant U.S. Attorneys Matthew Newcomer and John J. Boscia for the Eastern District of Pennsylvania, and Trial Attorney Ezra Spiro of the Justice Department’s Tax Division are prosecuting the case.

MIL Security OSI –

April 29, 2025

MIL-OSI: Financial Institutions, Inc. Announces First Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

WARSAW, N.Y., April 28, 2025 (GLOBE NEWSWIRE) — Financial Institutions, Inc. (NASDAQ: FISI) (the “Company,” “we” or “us”), parent company of Five Star Bank (the “Bank”) and Courier Capital, LLC (“Courier Capital”), today reported financial and operational results for the first quarter ended March 31, 2025.

The Company reported net income of $16.9 million in the first quarter of 2025, compared to a net loss of $82.8 million in the fourth quarter of 2024 and net income of $2.1 million in the first quarter of 2024. After preferred dividends, net income available to common shareholders was $16.5 million, or $0.81 per diluted share, in the first quarter of 2025, compared to net loss of $83.2 million, or $(5.07) per diluted share, in the fourth quarter of 2024, and net income of $1.7 million, or $0.11 per diluted share, in the first quarter of 2024. The Company recorded a provision for credit losses of $2.9 million in the current quarter, compared to a provision of $6.5 million in the linked quarter and a benefit of $5.5 million in the prior year quarter.

First Quarter 2025 Key Results:

Net interest margin and net interest income expanded meaningfully in the first quarter of 2025, primarily reflecting the impact of the investment portfolio restructuring that was executed at the end of 2024. Net interest margin of 3.35% for first quarter of 2025 was up 44 and 57 basis points from the linked and year-ago quarters, respectively, while net interest income of $46.9 million for first quarter of 2025 increased $5.2 million, or 12.6%, and $6.8 million, or 16.9%, from the linked and year-ago quarters, respectively.
Noninterest income was $10.4 million in the first quarter of 2025, compared to noninterest loss of $91.0 million in the linked quarter, which reflected the previously disclosed investment securities loss, and noninterest income of $10.9 million in the year-ago quarter, when the Company’s results included income from its former insurance subsidiary. First quarter 2025 noninterest income benefited from higher income from company owned life insurance (“COLI”) as a result of a surrender and redeploy strategy initiated in January 2025, in addition to higher swap fees and investment advisory income relative to comparable prior periods.
Noninterest expense in the first quarter of 2025 totaled $33.7 million, compared to noninterest expense including non-operating items in the linked and year-ago quarters of $59.4 million and $54.0 million, respectively.
Total loans were $4.55 billion at March 31, 2025, reflecting an increase of $74.1 million, or 1.7%, during the quarter, and an increase of $111.2 million, or 2.5%, from one year prior, driven by both commercial business and commercial mortgage lending.
Total deposits were $5.37 billion at March 31, 2025, up $268.2 million, or 5.3%, from December 31, 2024, driven by seasonal public deposit inflows as well as an increase in brokered deposits, and down $23.8 million, or 0.4%, from one year prior, due in part to lower reciprocal deposits and the previously announced wind-down of the Company’s Banking-as-a-Service, or BaaS, offering.
The Company reported improved credit quality metrics, as measured by quarterly net charge-offs to average loans of 0.21% for the first quarter of 2025, down from both the linked and year-ago quarters.
In February, the Company’s Board of Directors approved a 3.3% increase in its quarterly cash dividend to $0.31 per common share, a reflection of both its ongoing commitment to building shareholder value and its confidence in the Company’s long-term sustainable growth strategy.

“Our first quarter results were highlighted by improved earnings and profitability metrics, and reflected the full benefit of the strategic investment securities restructuring we undertook in December, as well as our team’s ability to meet the banking, credit and investment advisory needs of our customers amid a challenging environment,” said President and Chief Executive Officer Martin K. Birmingham. “Our focus on performance resulted in a more than 12% increase in net interest income from the linked quarter, as well as a 44-basis-point expansion of net interest margin, an efficiency ratio below 60% and solid return on average assets of 1.10% and return on average equity of 11.82%.

“Our pipelines carried momentum with credit-disciplined lending heading into 2025 and supported a 1.7% quarterly increase in total loans, with stable-to-improved credit metrics for the first quarter. Amid the uncertain economic landscape, coupled with our current pipelines and discussions with customers, we believe that loan growth will be concentrated in the first half of the year.”

Chief Financial Officer and Treasurer W. Jack Plants II added, “Our successful fourth quarter public equity offering not only allowed us to restructure our investment securities portfolio to drive stronger earnings potential, evident in our first quarter results, but also provided additional dry powder that we have sought to thoughtfully deploy. To that end, earlier this month we called $10 million of fixed-to-floating sub-debt that was issued in April 2015. We also took steps to enhance noninterest revenue by restructuring a portion of our COLI portfolio into a higher-yielding credit fund, which contributed to higher COLI income in the first quarter. We continue to remain confident that our stronger capital position and improved earnings outlook position us well to drive sustainable and profitable growth, as we seek to support our customers amid a challenging operating environment and prudently manage expenses.”

Net Interest Income and Net Interest Margin

Net interest income was $46.9 million for the first quarter of 2025, an increase of $5.2 million from the fourth quarter of 2024, and an increase of $6.8 million from the first quarter of 2024.

Average interest-earning assets for the current quarter were $5.65 billion, reflecting decreases of $64.5 million from the fourth quarter of 2024 and $153.6 million from the first quarter of 2024. The linked quarter decrease was due to a $74.2 million decrease in the average balance of investment securities and a $49.8 million decrease in the average balance of Federal Reserve interest-earning cash, partially offset by a $59.5 million increase in average loans. The year-over-year decrease in average interest-earning assets was due to a $97.3 million decrease in the average balance of investment securities and an $86.3 million decrease in the average balance of Federal Reserve interest-earning cash, partially offset by a $30.0 million increase in average loans.

Average interest-bearing liabilities for the current quarter were $4.51 billion, reflecting an increase of $31.1 million from the linked quarter and a decrease of $108.0 million from the year-ago quarter. The increase from the fourth quarter of 2024 was primarily due to a $38.7 million increase in average short-term borrowings and a $19.9 million increase in average time deposits, partially offset by a $15.6 million decrease in average savings and money market deposits and a $12.0 million decrease in average interest-bearing demand deposits. The year-over-year decrease was due to a $105.3 million decrease in average savings and money market deposits, along with an $84.2 million decrease in average borrowings and a $4.3 million decrease in average interest-bearing demand deposits, partially offset by a $85.9 million increase in average time deposits. The outflow of BaaS-related deposits following the Company’s September 2024 announcement that it would wind-down its BaaS platform by mid-2025 was the primary driver of the reduction in average savings and money market deposits from the linked and year-ago periods.

Net interest margin was 3.35% in the current quarter as compared to 2.91% in the fourth quarter of 2024, and 2.78% in the first quarter of 2024. Expansion from both the linked and prior year quarters was primarily due to an increase in the average yield on investment securities, following the previously disclosed restructuring of the available-for-sale portfolio, which supported an increase in the average yield on interest-earning assets. Margin expansion was also supported by lower cost of interest-bearing liabilities, driven by the repricing across public, non-public and reciprocal deposits.

Noninterest Income (Loss)

The Company reported noninterest income of $10.4 million for the first quarter of 2025, compared to noninterest loss of $91.0 million in the fourth quarter of 2024, and noninterest income of $10.9 million in the first quarter of 2024.

A net loss on investment securities of $100.1 million was recognized in the fourth quarter of 2024 related to the previously disclosed securities portfolio restructuring.
Noninterest income no longer includes contributions from the Company’s insurance agency, which generated first quarter 2024 insurance income of $2.1 million prior to its sale on April 1, 2024.
Investment advisory income of $2.7 million was $182 thousand higher than the fourth quarter of 2024 and up $155 thousand from the first quarter of 2024.
Income from COLI of $2.8 million was $1.4 million higher than the fourth quarter of 2024 and $1.5 million higher than the first quarter of 2024, due to the previously mentioned surrender and redeploy strategy initiated in January 2025.
Income from investments in limited partnerships of $415 thousand was $422 thousand lower than the fourth quarter of 2024 and $73 thousand higher than the first quarter of 2024. The Company has made several investments in limited partnerships, primarily small business investment companies, and accounts for these investments under the equity method. Income from these investments fluctuates based on the maturity and performance of the underlying investments.
Income from derivative instruments, net was $250 thousand in the current quarter, compared to a loss of $37 thousand in the fourth quarter of 2024, and income of $174 thousand in the first quarter of 2024. Income from derivative instruments, net is based on the number and value of interest rate swap transactions executed during the quarter combined with the impact of changes in the fair value of borrower-facing trades.

Noninterest Expense

Noninterest expense was $33.7 million in the first quarter of 2025, compared to $59.4 million in the fourth quarter of 2024, and $54.0 million in the first quarter of 2024.

Salaries and employee benefits expense of $16.9 million was $261 thousand lower than the fourth quarter of 2024 and $442 thousand lower than the first quarter of 2024. The decrease from the linked quarter was primarily due to a $1.3 million nonrecurring settlement accounting adjustment in the Company’s pension plan recorded in the fourth quarter of 2024, while the year-over-year decrease was primarily due to the timing of the insurance subsidiary asset sale.
Professional services expenses of $1.7 million were $120 thousand higher than the fourth quarter of 2024 and $681 thousand lower than the first quarter of 2024, with the year-over-year variance primarily attributable to legal expenses incurred in the first quarter of 2024 related to the Company’s previously disclosed deposit-related fraud event.
Computer and data processing expense of $5.5 million was $1.1 million lower than the fourth quarter of 2024 and $101 thousand higher than the first quarter of 2024. The linked quarter variance was primarily due to nonrecurring project related expenses incurred in the fourth quarter of 2024.
As previously disclosed, the Company recorded a $23.0 million provision for litigation settlement in its fourth quarter 2024 financial results related to a long-standing auto lending litigation.
The Company recorded deposit-related recoveries of $294 thousand, primarily driven by insurance proceeds related to a past commercial deposit charged-off item, compared to charged-off items of $354 thousand in the fourth quarter of 2024 and $19.2 million in the first quarter of 2024, the majority of which related to the Company’s previously disclosed deposit-related fraud event.
Other expense of $3.8 million was down $484 thousand from the linked quarter, due in part to the timing of both New York State capital base tax and charitable contributions impacting the fourth quarter of 2024, while year-over-year other expense was relatively flat.

Income Taxes

Income tax expense was $3.7 million for the first quarter of 2025, compared to a benefit of $32.5 million in the fourth quarter of 2024, reflective of the net loss reported in that period, and expense of $356 thousand in the first quarter of 2024. The Company also recognized federal and state tax benefits related to tax credit investments placed in service and/or amortized during the first quarter of 2025, fourth quarter of 2024, and first quarter of 2024, resulting in income tax expense reductions of $1.1 million, $1.2 million, and $785 thousand, respectively.

The effective tax rate was 18.2% for the first quarter of 2025, -28.2% for the fourth quarter of 2024, and 18.7% for the first quarter of 2024. The effective tax rate fluctuates on a quarterly basis primarily due to the level of pre-tax (loss) earnings and may differ from statutory rates because of interest income from tax-exempt securities, earnings on COLI and the impact of tax credit investments.

Balance Sheet and Capital Management

Total assets were $6.34 billion at March 31, 2025, up $223.4 million from December 31, 2024, and up $41.9 million from March 31, 2024.

Investment securities were $1.04 billion at March 31, 2025, up $13.0 million from December 31, 2024, and down $27.4 million from March 31, 2024.

Total loans were $4.55 billion at March 31, 2025, an increase of $74.1 million, or 1.7%, from December 31, 2024, and an increase of $111.2 million, or 2.5%, from March 31, 2024.

Commercial business loans totaled $709.1 million, up $43.8 million, or 6.6%, from December 31, 2024, and up $1.5 million, or 0.2%, from March 31, 2024.
Commercial mortgage loans totaled $2.23 billion, up $28.7 million, or 1.3%, from December 31, 2024, and up $183.2 million, or 9.0%, from March 31, 2024.
Residential real estate loans totaled $644.0 million, down $6.2 million, or 1.0%, from December 31, 2024, and down $4.2 million, or 0.6%, from March 31, 2024.
Consumer indirect loans totaled $853.2 million, up $7.4 million, or 0.9%, from December 31, 2024, and down $67.3 million, or 7.3%, from March 31, 2024.

Total deposits were $5.37 billion at March 31, 2025, up $268.2 million, or 5.3%, from December 31, 2024, and down $23.8 million, or 0.4%, from March 31, 2024. The increase from December 31, 2024 was primarily due to seasonally higher public deposit balances in addition to an increase in brokered deposits between period ends. The decrease from March 31, 2024 was driven in part by reductions in BaaS-related and reciprocal deposits. Public deposit balances represented 23% of total deposits at March 31, 2025, 20% at December 31, 2024, and 22% at March 31, 2024.

Short-term borrowings were $55.0 million at March 31, 2025, compared to $99.0 million at December 31, 2024, and $133.0 million at March 31, 2024. Short-term borrowings and brokered deposits have historically been utilized to manage the seasonality of public deposits.

Shareholders’ equity was $589.9 million at March 31, 2025, compared to $569.0 million at December 31, 2024, and $445.7 million at March 31, 2024. Both the linked quarter and year-over-year period end increases were primarily driven by additional paid-in-capital resulting from the common stock capital raise executed in the fourth quarter of 2024 and decreases in accumulated other comprehensive loss between period ends following the investment securities restructuring.

Common book value per share was $28.48 at March 31, 2025, an increase of $1.00, or 3.6%, from $27.48 at December 31, 2024, and an increase of $0.74, or 2.7%, from $27.74 at March 31, 2024. Tangible common book value per share⁽¹⁾ was $25.46 at March 31, 2025, an increase of $1.01, or 4.1%, from $24.45 at December 31, 2024, and an increase of $2.40, or 10.4%, from $23.06 at March 31, 2024. The common equity to assets ratio was 9.03% at March 31, 2025, compared to 9.02% at December 31, 2024, and 6.80% at March 31, 2024. Tangible common equity to tangible assets⁽¹⁾, or the TCE ratio, was 8.15%, 8.11% and 5.72% at March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The year-over-year increases in both ratios were attributable to the additional capital raised in the fourth quarter and the decrease in accumulated other comprehensive loss.

During the first quarter of 2025, the Company declared a common stock dividend of $0.31 per common share, an increase of $0.01, or 3.3%, over the linked and year-ago quarters. The dividend returned more than 37% of first quarter net income to common shareholders.

The Company’s regulatory capital ratios at March 31, 2025 continued to exceed all regulatory capital requirements to be considered well capitalized.

Leverage Ratio was 9.24% compared to 9.15% and 8.03% at December 31, 2024, and March 31, 2024, respectively.
Common Equity Tier 1 Capital Ratio was 10.38% compared to 10.54% and 9.43% at December 31, 2024, and March 31, 2024, respectively.
Tier 1 Capital Ratio was 10.71% compared to 10.87% and 9.76% at December 31, 2024, and March 31, 2024, respectively.
Total Risk-Based Capital Ratio was 13.09% compared to 13.25% and 12.04% at December 31, 2024, and March 31, 2024, respectively.

In April 2025, the Company called $10.0 million of its $40.0 million of fixed-to-floating rate subordinated debt that was originally issued in April 2015. These notes initially bore interest at a fixed rate of 6.00% and were scheduled to reprice at a rate equal to the then-current three-month term SOFR plus 4.20561% after the April 2025 call date. The Company’s subordinated debt is now comprised of $30.0 million of April 2015 notes, as well as the separate $35.0 million of fixed-to-floating rate subordinated notes that were issued in October 2020, which currently bear interest at a fixed rate of 4.375%, and are set to reprice at a rate of the then-current three-month term SOFR plus 4.265% beginning in October 2025. The April 2015 notes are callable on a quarterly basis going forward and the October 2020 notes become callable beginning in October 2025. The Company will continue to evaluate options relative to the subordinated debt which may include redemption in part or in full, as well as replacing or refinancing the facilities.

Credit Quality

Non-performing loans were $40.0 million, or 0.88% of total loans, at March 31, 2025, as compared to $41.4 million, or 0.92% of total loans, at December 31, 2024, and $26.7 million, or 0.60% of total loans, at March 31, 2024. The increase in non-performing loans from March 31, 2024 was primarily driven by one commercial loan relationship that was placed on nonaccrual during the third quarter of 2024. Net charge-offs were $2.4 million, representing 0.21% of average loans on an annualized basis, for the current quarter, as compared to $2.8 million, or an annualized 0.25% of average loans, in the fourth quarter of 2024 and $3.1 million, or an annualized 0.28%, in the first quarter of 2024.

At March 31, 2025, the allowance for credit losses on loans to total loans ratio was 1.08%, compared to 1.07% at December 31, 2024 and 0.97% at March 31, 2024.

Provision for credit losses was $2.9 million in the current quarter, compared to a provision of $6.5 million in the linked quarter and a benefit of $5.5 million in the prior year quarter. Provision for credit losses on loans was $3.3 million in the current quarter, compared to a provision of $6.1 million in the fourth quarter of 2024, and a benefit of $4.9 million in the first quarter of 2024. The allowance for unfunded commitments, also included in provision for credit losses as required by the current expected credit loss standard (“CECL”), totaled a provision of $364 thousand in the first quarter of 2025, a provision of $321 thousand in the fourth quarter of 2024, and a credit of $570 thousand in the first quarter of 2024. The provision for credit losses for the first quarter of 2025 was driven by a combination of factors, including the impact of loan growth and an increase in specific reserves, partially offset by modest improvement in forecasted losses and qualitative factors, primarily reflecting a reduction in consumer indirect delinquencies. Specific reserves increased by $932,000 for the first quarter, primarily driven by a $1.3 million specific reserve related to the Bank’s participation in a non-owner occupied commercial mortgage loan, which it moved to nonaccrual in the fourth quarter of 2023.

The Company has remained strategically focused on the importance of credit discipline, allocating resources to credit and risk management functions as the loan portfolio has grown. The ratio of allowance for credit losses on loans to non-performing loans was 122% at March 31, 2025, 116% at December 31, 2024, and 161% at March 31, 2024, with the year-over-year decrease reflective of the higher level of nonperforming loans reported at March 31, 2025.

Subsequent Events

The Company is required, under generally accepted accounting principles (“GAAP”), to evaluate subsequent events through the filing of its consolidated financial statements for the quarter ended March 31, 2025, on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of March 31, 2025, and will adjust amounts preliminarily reported, if necessary.

Conference Call

The Company will host an earnings conference call and audio webcast on April 29, 2025 at 8:30 a.m. Eastern Time. The call will be hosted by Martin K. Birmingham, President and Chief Executive Officer, and W. Jack Plants II, Chief Financial Officer and Treasurer. The live webcast will be available in listen-only mode on the Company’s website at www.FISI-investors.com. Within the United States, listeners may also access the call by dialing 1-833-470-1428 and providing the access code 737945. The webcast replay will be available on the Company’s website for at least 30 days.

About Financial Institutions, Inc.

Financial Institutions, Inc. (NASDAQ: FISI) is a financial holding company with approximately $6.3 billion in assets offering banking and wealth management products and services. Its Five Star Bank subsidiary provides consumer and commercial banking and lending services to individuals, municipalities and businesses through banking locations spanning Western and Central New York and a commercial loan production office serving the Mid-Atlantic region. Courier Capital, LLC offers customized investment management, consulting and retirement plan services to individuals, businesses, institutions, foundations and retirement plans. Learn more at Five-StarBank.com and FISI-Investors.com.

Non-GAAP Financial Information

In addition to results presented in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release contains certain non-GAAP financial measures. A reconciliation of these non-GAAP measures to GAAP measures is included in Appendix A to this document.

The Company believes that providing certain non-GAAP financial measures provides investors with information useful in understanding our financial performance, performance trends and financial position. Our management uses these measures for internal planning and forecasting purposes and we believe that our presentation and discussion, together with the accompanying reconciliations, allows investors, security analysts and other interested parties to view our performance and the factors and trends affecting our business in a manner similar to management. These non-GAAP measures should not be considered a substitute for GAAP measures, and we strongly encourage investors to review our consolidated financial statements in their entirety and not to rely on any single financial measure to evaluate the Company. Non-GAAP financial measures have inherent limitations, are not uniformly applied and are not audited. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

Safe Harbor Statement

This press release may contain forward-looking statements as defined by Section 21E of the Securities Exchange Act of 1934, as amended, that involve significant risks and uncertainties. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “anticipate,” “believe,” “continue,” “estimate,” “expect,” “focus,” “forecast,” “intend,” “may,” “plan,” “preliminary,” “should,” “target” or “will.” Statements herein are based on certain assumptions and analyses by the Company and factors it believes are appropriate in the circumstances. Actual results could differ materially from those contained in or implied by such statements for a variety of reasons including, but not limited to: additional information regarding the deposit fraudulent activity; changes in interest rates; inflation; tariffs; changes in deposit flows and the cost and availability of funds; the Company’s ability to implement its strategic plan, including by expanding its commercial lending footprint and integrating its acquisitions; whether the Company experiences greater credit losses than expected; whether the Company experiences breaches of its, or third party, information systems; the attitudes and preferences of the Company’s customers; legal and regulatory proceedings and related matters, including any action described in our reports filed with the SEC, could adversely affect us and the banking industry in general; the competitive environment; fluctuations in the fair value of securities in its investment portfolio; changes in the regulatory environment and the Company’s compliance with regulatory requirements; and general economic and credit market conditions nationally and regionally; and the macroeconomic volatility related to global political unrest. Consequently, all forward-looking statements made herein are qualified by these cautionary statements and the cautionary language and risk factors included in the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q and other documents filed with the SEC. Except as required by law, the Company undertakes no obligation to revise these statements following the date of this press release.

_{⁽¹⁾ See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.}

For additional information contact:
Kate Croft
Director of Investor and External Relations
(716) 817-5159
klcroft@five-starbank.com

FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)

	2025			2024
SELECTED BALANCE SHEET DATA:	March 31,			December 31,			September 30,			June 30,			March 31,
Cash and cash equivalents	$	167,352		$	87,321		$	249,569		$	146,347		$	237,038
Investment securities:
Available for sale		926,992			911,105			886,816			871,635			923,761
Held-to-maturity, net		113,105			116,001			121,279			128,271			143,714
Total investment securities		1,040,097			1,027,106			1,008,095			999,906			1,067,475
Loans held for sale		387			2,280			2,495			2,099			504
Loans:
Commercial business		709,101			665,321			654,519			713,947			707,564
Commercial mortgage–construction		566,359			582,619			533,506			518,013			528,694
Commercial mortgage–multifamily		475,867			470,954			467,527			463,171			453,027
Commercial mortgage–non-owner occupied		899,679			857,987			814,392			814,953			798,637
Commercial mortgage–owner occupied		286,391			288,036			290,216			289,733			264,698
Residential real estate loans		643,983			650,206			648,241			647,675			648,160
Residential real estate lines		74,769			75,552			76,203			75,510			75,668
Consumer indirect		853,176			845,772			874,651			894,596			920,428
Other consumer		43,953			42,757			43,734			43,870			45,170
Total loans		4,553,278			4,479,204			4,402,989			4,461,468			4,442,046
Allowance for credit losses – loans		48,964			48,041			44,678			43,952			43,075
Total loans, net		4,504,314			4,431,163			4,358,311			4,417,516			4,398,971
Total interest-earning assets		5,733,743			5,602,570			5,666,972			5,709,148			5,857,616
Goodwill and other intangible assets, net		60,651			60,758			60,867			60,979			72,287
Total assets		6,340,492			6,117,085			6,156,317			6,131,772			6,298,598
Deposits:
Noninterest-bearing demand		945,182			950,351			978,660			939,346			972,801
Interest-bearing demand		773,475			705,195			793,996			711,580			798,831
Savings and money market		2,033,323			1,904,013			2,027,181			2,007,256			2,064,539
Time deposits		1,620,930			1,545,172			1,506,764			1,475,139			1,560,586
Total deposits		5,372,910			5,104,731			5,306,601			5,133,321			5,396,757
Short-term borrowings		55,000			99,000			55,000			202,000			133,000
Long-term borrowings, net		124,917			124,842			124,765			124,687			124,610
Total interest-bearing liabilities		4,607,645			4,405,912			4,507,706			4,520,662			4,681,566
Shareholders’ equity		589,928			568,984			500,342			467,667			445,734
Common shareholders’ equity		572,643			551,699			483,050			450,375			428,442
Tangible common equity ⁽¹⁾		511,992			490,941			422,183			389,396			356,155
Accumulated other comprehensive loss	$	(41,995	)	$	(52,604	)	$	(102,029	)	$	(125,774	)	$	(126,264	)

Common shares outstanding		20,110			20,077			15,474			15,472			15,447
Treasury shares		590			623			625			627			653
CAPITAL RATIOS AND PER SHARE DATA:
Leverage ratio		9.24	%		9.15	%		8.98	%		8.61	%		8.03	%
Common equity Tier 1 capital ratio		10.38	%		10.54	%		10.28	%		10.03	%		9.43	%
Tier 1 capital ratio		10.71	%		10.87	%		10.62	%		10.36	%		9.76	%
Total risk-based capital ratio		13.09	%		13.25	%		12.95	%		12.65	%		12.04	%
Common equity to assets		9.03	%		9.02	%		7.85	%		7.34	%		6.80	%
Tangible common equity to tangible assets ⁽¹⁾		8.15	%		8.11	%		6.93	%		6.41	%		5.72	%

Common book value per share	$	28.48		$	27.48		$	31.22		$	29.11		$	27.74
Tangible common book value per share ⁽¹⁾	$	25.46		$	24.45		$	27.28		$	25.17		$	23.06

_{^1. See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.}

FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands, except per share amounts)

	2025			2024
	First			Fourth			Third			Second			First
SELECTED STATEMENT OF OPERATIONS DATA:	Quarter			Quarter			Quarter			Quarter			Quarter
Interest income	$	81,051		$	78,119		$	77,911		$	78,788		$	78,413
Interest expense		34,187			36,486			37,230			37,595			38,331
Net interest income		46,864			41,633			40,681			41,193			40,082
Provision (benefit) for credit losses		2,928			6,461			3,104			2,041			(5,456	)
Net interest income after provision (benefit) for credit losses		43,936			35,172			37,577			39,152			45,538
Noninterest income:
Service charges on deposits		1,052			1,074			1,103			979			1,077
Insurance income		3			3			3			4			2,134
Card interchange income		1,840			2,045			1,900			2,008			1,902
Investment advisory		2,737			2,555			2,797			2,779			2,582
Company owned life insurance		2,777			1,425			1,404			1,360			1,298
Investments in limited partnerships		415			837			400			803			342
Loan servicing		123			295			88			158			175
Income (loss) from derivative instruments, net		250			(37	)		212			377			174
Net gain on sale of loans held for sale		117			186			220			124			88
Net loss on investment securities		–			(100,055	)		–			–			–
Net (loss) gain on other assets		–			(19	)		138			13,508			(13	)
Net (loss) gain on tax credit investments		(514	)		(636	)		(170	)		406			(375	)
Other		1,573			1,291			1,345			1,508			1,517
Total noninterest income (loss)		10,373			(91,036	)		9,440			24,014			10,901
Noninterest expense:
Salaries and employee benefits		16,898			17,159			15,879			15,748			17,340
Occupancy and equipment		3,590			3,791			3,370			3,448			3,752
Professional services		1,691			1,571			1,965			1,794			2,372
Computer and data processing		5,487			6,608			5,353			5,342			5,386
Supplies and postage		578			504			519			437			475
FDIC assessments		1,467			1,551			1,092			1,346			1,295
Advertising and promotions		342			465			371			440			297
Amortization of intangibles		107			109			112			114			217
Provision for litigation settlement		–			23,022			–			–			–
Deposit-related charged-off items (recoveries) expense		(294	)		354			410			398			19,179
Restructuring charges		68			35			–			–			–
Other		3,751			4,235			3,398			3,953			3,700
Total noninterest expense		33,685			59,404			32,469			33,020			54,013
Income (loss) before income taxes		20,624			(115,268	)		14,548			30,146			2,426
Income tax expense (benefit)		3,746			(32,457	)		1,082			4,517			356
Net income (loss)		16,878			(82,811	)		13,466			25,629			2,070
Preferred stock dividends		365			365			365			364			365
Net income (loss) available to common shareholders	$	16,513		$	(83,176	)	$	13,101		$	25,265		$	1,705
FINANCIAL RATIOS:
Earnings (loss) per share – basic	$	0.82		$	(5.07	)	$	0.85		$	1.64		$	0.11
Earnings (loss) per share – diluted	$	0.81		$	(5.07	)	$	0.84		$	1.62		$	0.11
Cash dividends declared on common stock	$	0.31		$	0.30		$	0.30		$	0.30		$	0.30
Common dividend payout ratio		37.80	%		-5.92	%		35.29	%		18.29	%		272.73	%
Dividend yield (annualized)		5.05	%		4.37	%		4.69	%		6.25	%		6.41	%
Return on average assets (annualized)		1.10	%		-5.38	%		0.89	%		1.68	%		0.13	%
Return on average equity (annualized)		11.82	%		-63.70	%		11.08	%		22.93	%		1.83	%
Return on average common equity (annualized)		11.92	%		-66.19	%		11.18	%		23.51	%		1.57	%
Return on average tangible common equity (annualized) ⁽¹⁾		13.36	%		-75.36	%		12.87	%		27.51	%		1.88	%
Efficiency ratio ⁽²⁾		58.79	%		117.13	%		64.70	%		50.58	%		105.77	%
Effective tax rate		18.2	%		-28.2	%		7.4	%		15.0	%		18.7	%

_{^1. See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.}
_{^2. The efficiency ratio is calculated by dividing noninterest expense by net revenue, i.e., the sum of net interest income (fully taxable equivalent) and noninterest income before net gains on investment securities. This is a banking industry measure not required by GAAP.}

FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands)

	2025			2024
	First			Fourth			Third			Second			First
SELECTED AVERAGE BALANCES:	Quarter			Quarter			Quarter			Quarter			Quarter
Federal funds sold and interest-earning deposits	$	71,767		$	121,530		$	49,476		$	134,123		$	158,075
Investment securities⁽¹⁾		1,085,649			1,159,863			1,147,052			1,194,808			1,182,993
Loans:
Commercial business		677,700			658,038			673,830			704,272			722,720
Commercial mortgage–construction		562,724			558,200			513,768			495,177			470,115
Commercial mortgage–multifamily		475,262			458,691			467,801			466,501			468,028
Commercial mortgage–non-owner occupied		879,387			843,034			826,275			837,209			843,526
Commercial mortgage–owner occupied		286,526			288,502			285,061			260,495			248,172
Residential real estate loans		647,005			649,549			647,844			648,099			648,921
Residential real estate lines		74,709			76,164			75,671			75,575			76,396
Consumer indirect		848,282			858,854			881,133			905,056			934,380
Other consumer		42,230			43,333			43,789			44,552			51,535
Total loans		4,493,825			4,434,365			4,415,172			4,436,936			4,463,793
Total interest-earning assets		5,651,241			5,715,758			5,611,700			5,765,867			5,804,861
Goodwill and other intangible assets, net		60,717			60,824			60,936			62,893			72,409
Total assets		6,220,187			6,121,449			6,018,390			6,153,429			6,225,760
Interest-bearing liabilities:
Interest-bearing demand		745,210			757,221			691,412			741,006			749,512
Savings and money market		1,976,483			1,992,059			1,938,935			2,036,772			2,081,815
Time deposits		1,564,987			1,545,071			1,515,745			1,505,665			1,479,133
Short-term borrowings		95,223			56,513			129,130			140,110			179,747
Long-term borrowings, net		124,871			124,795			124,717			124,640			124,562
Total interest-bearing liabilities		4,506,774			4,475,659			4,399,939			4,548,193			4,614,769
Noninterest-bearing demand deposits		926,696			947,428			952,970			950,819			962,522
Total deposits		5,213,376			5,241,779			5,099,062			5,234,262			5,272,982
Total liabilities		5,640,981			5,604,249			5,535,112			5,703,929			5,770,725
Shareholders’ equity		579,206			517,200			483,278			449,500			455,035
Common equity		561,921			499,910			465,986			432,208			437,743
Tangible common equity⁽²⁾		501,204			439,086			405,050			369,315			365,334
Common shares outstanding:
Basic		20,073			16,415			15,464			15,444			15,403
Diluted		20,285			16,415			15,636			15,556			15,543
SELECTED AVERAGE YIELDS: *(Tax equivalent basis)*
Investment securities		4.25	%		2.38	%		2.14	%		2.17	%		2.09	%
Loans		6.20	%		6.28	%		6.42	%		6.40	%		6.33	%
Total interest-earning assets		5.80	%		5.45	%		5.53	%		5.50	%		5.43	%
Interest-bearing demand		1.15	%		1.34	%		1.05	%		1.18	%		1.11	%
Savings and money market		2.75	%		2.94	%		3.07	%		3.01	%		3.08	%
Time deposits		4.31	%		4.53	%		4.72	%		4.72	%		4.68	%
Short-term borrowings		2.09	%		0.15	%		2.64	%		2.75	%		3.42	%
Long-term borrowings, net		5.00	%		5.03	%		5.03	%		5.02	%		5.02	%
Total interest-bearing liabilities		3.07	%		3.24	%		3.37	%		3.32	%		3.34	%
Net interest rate spread		2.73	%		2.21	%		2.16	%		2.18	%		2.09	%
Net interest margin		3.35	%		2.91	%		2.89	%		2.87	%		2.78	%

_{^1. Includes investment securities at adjusted amortized cost.}
_{^2. See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.}
_{^3. The interest on tax-exempt securities is calculated on a tax-equivalent basis assuming a Federal income tax rate of 21%.}

FINANCIAL INSTITUTIONS, INC.
Selected Financial Information (Unaudited)
(Amounts in thousands)

	2025			2024
	First			Fourth			Third			Second			First
ASSET QUALITY DATA:	Quarter			Quarter			Quarter			Quarter			Quarter
Allowance for Credit Losses – Loans
Beginning balance	$	48,041		$	44,678		$	43,952		$	43,075		$	51,082
Net loan charge-offs (recoveries):
Commercial business		57			131			(3	)		7			(37	)
Commercial mortgage–construction		–			–			–			–			–
Commercial mortgage–multifamily		–			–			13			–			–
Commercial mortgage–non-owner occupied		(1	)		(5	)		(1	)		(1	)		(1	)
Commercial mortgage–owner occupied		(1	)		(1	)		(2	)		(2	)		–
Residential real estate loans		41			(4	)		(1	)		96			4
Residential real estate lines		–			–			–			–			–
Consumer indirect		2,149			2,557			1,553			844			2,973
Other consumer		124			100			106			178			182
Total net charge-offs (recoveries)		2,369			2,778			1,665			1,122			3,121
Provision (benefit) for credit losses – loans		3,292			6,141			2,391			1,999			(4,886	)
Ending balance	$	48,964		$	48,041		$	44,678		$	43,952		$	43,075

Net charge-offs (recoveries) to average loans (annualized):
Commercial business		0.03	%		0.80	%		0.00	%		0.00	%		-0.02	%
Commercial mortgage–construction		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Commercial mortgage–multifamily		0.00	%		0.00	%		0.01	%		0.00	%		0.00	%
Commercial mortgage–non-owner occupied		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Commercial mortgage–owner occupied		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Residential real estate loans		0.03	%		0.00	%		0.00	%		0.06	%		0.00	%
Residential real estate lines		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Consumer indirect		1.03	%		1.18	%		0.70	%		0.38	%		1.28	%
Other consumer		1.19	%		0.91	%		0.95	%		1.62	%		1.41	%
Total loans		0.21	%		0.25	%		0.15	%		0.10	%		0.28	%

Supplemental information⁽¹⁾
Non-performing loans:
Commercial business	$	5,672		$	5,609		$	5,752		$	5,680		$	5,956
Commercial mortgage–construction		19,684			20,280			20,280			4,970			5,320
Commercial mortgage–multifamily		–			–			71			183			185
Commercial mortgage–non-owner occupied		4,766			4,773			4,903			4,919			4,929
Commercial mortgage–owner occupied		349			354			366			380			392
Residential real estate loans		6,035			6,918			5,790			5,961			6,797
Residential real estate lines		316			253			232			183			235
Consumer indirect		2,917			3,157			3,291			2,897			2,880
Other consumer		279			62			57			36			36
Total non-performing loans		40,018			41,406			40,742			25,209			26,730
Foreclosed assets		196			60			109			63			140
Total non-performing assets	$	40,214		$	41,466		$	40,851		$	25,272		$	26,870

Total non-performing loans to total loans		0.88	%		0.92	%		0.93	%		0.57	%		0.60	%
Total non-performing assets to total assets		0.63	%		0.68	%		0.66	%		0.41	%		0.43	%
Allowance for credit losses – loans to total loans		1.08	%		1.07	%		1.01	%		0.99	%		0.97	%
Allowance for credit losses – loans to non-performing loans		122	%		116	%		110	%		174	%		161	%

_{^1. At period end.}

FINANCIAL INSTITUTIONS, INC.
Appendix A — Reconciliation to Non-GAAP Financial Measures (Unaudited)
(In thousands, except per share amounts)

	2025			2024
	First			Fourth			Third			Second			First
	Quarter			Quarter			Quarter			Quarter			Quarter
Ending tangible assets:
Total assets	$	6,340,492		$	6,117,085		$	6,156,317		$	6,131,772		$	6,298,598
Less: Goodwill and other intangible assets, net		60,651			60,758			60,867			60,979			72,287
Tangible assets	$	6,279,841		$	6,056,327		$	6,095,450		$	6,070,793		$	6,226,311

Ending tangible common equity:
Common shareholders’ equity	$	572,643		$	551,699		$	483,050		$	450,375		$	428,442
Less: Goodwill and other intangible assets, net		60,651			60,758			60,867			60,979			72,287
Tangible common equity	$	511,992		$	490,941		$	422,183		$	389,396		$	356,155

Tangible common equity to tangible assets ⁽¹⁾		8.15	%		8.11	%		6.93	%		6.41	%		5.72	%

Common shares outstanding		20,110			20,077			15,474			15,472			15,447
Tangible common book value per share ⁽²⁾	$	25.46		$	24.45		$	27.28		$	25.17		$	23.06

Average tangible assets:
Average assets	$	6,220,187		$	6,121,449		$	6,018,390		$	6,153,429		$	6,225,760
Less: Average goodwill and other intangible assets, net		60,717			60,824			60,936			62,893			72,409
Average tangible assets	$	6,159,470		$	6,060,625		$	5,957,454		$	6,090,536		$	6,153,351

Average tangible common equity:
Average common equity	$	561,921		$	499,910		$	465,986		$	432,208		$	437,743
Less: Average goodwill and other intangible assets, net		60,717			60,824			60,936			62,893			72,409
Average tangible common equity	$	501,204		$	439,086		$	405,050		$	369,315		$	365,334

Net income (loss) available to common shareholders	$	16,513		$	(83,176	)	$	13,101		$	25,265		$	1,705
Return on average tangible common equity ⁽³⁾		13.36	%		-75.36	%		12.87	%		27.51	%		1.88	%

_{^1. Tangible common equity divided by tangible assets.}
_{^2. Tangible common equity divided by common shares outstanding.}
_{^3. Net income available to common shareholders (annualized) divided by average tangible common equity.}

The MIL Network –

April 29, 2025

MIL-OSI Security: Syracuse Man Sentenced for Distribution, Transportation and Possession of Child Pornography

Source: Office of United States Attorneys

SYRACUSE, NEW YORK – Paul Mignacca, age 46, of Syracuse, was sentenced today to 78 months in federal prison for distribution, transportation, and possession of child pornography. United States Attorney John A. Sarcone III and Craig R. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

Between September 2023 and February 2024, Mignacca uploaded several videos of child sexual abuse material to a social media application group chat dedicated to sharing child pornography files, as well as to Mignacca’s private account on an Internet-based filesharing application. Law enforcement arrested Mignacca in April 2024 and seized his electronic devices. Digital forensic analysis revealed that Mignacca possessed more than 3,400 files constituting child pornography.

United States Chief District Judge Brenda K. Sannes also ordered Mignacca to serve a 10-year term of post-incarceration supervised release, to pay a total of $60,000 in restitution to children identified from the child pornography he possessed, and to forfeit the electronic device he used to commit the offenses. Mignacca will also be required to register as a sex offender after his release from prison.

The case was investigated by the FBI’s Albany Division Child Exploitation and Human Trafficking Task Force, the Onondaga County Sheriff’s Office, and the New York State Police. Assistant U.S. Attorney Ben Gillis prosecuted the case as a part of Project Safe Childhood.

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

MIL Security OSI –

April 29, 2025

MIL-OSI Security: Marathon County Man Sentenced to Seven Years for Conspiring to Traffic Methamphetamine

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

MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Dustin P. Brunker, 37, Weston, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 7 years in federal prison for conspiring to distribute 50 grams or more of methamphetamine. The prison term will be followed by 5 years of supervised release. Brunker pleaded guilty to this charge on January 28, 2025.

In early 2024, investigators with the Central Wisconsin Narcotics Task Force began investigating a group of individuals who were distributing large quantities of methamphetamine and cocaine in the Marathon County area. Brunker was identified as a distributor for the group.

Following a series of controlled purchases of methamphetamine involving Brunker in March and April of 2024, task force officers executed a search warrant at a residence that Brunker shared with co-defendant Mercadys A. Perkins in Weston. Officers found over 300 grams of methamphetamine, over $2,000 in cash, drug ledgers, and other drug trafficking paraphernalia during the search.

Further investigation revealed that between February 18, 2024, and April 12, 2024, a co-conspirator provided Brunker and Perkins approximately 16 pounds of methamphetamine and 6 ounces of cocaine intended for further distribution.

At the time of these events, Brunker was serving a term of state supervision for two felony cases and out on state bond for a felony drug charge. His state supervision was revoked, and he was sentenced to a total of 3 years in state prison, which he is currently serving. Judge Conley ordered the federal sentence run concurrently with the remainder of Brunker’s state prison sentences.

At sentencing, Judge Conley called Brunker’s large quantity methamphetamine trafficking egregious. Judge Conley further observed that while Brunker had a lengthy prior record, the conduct in the present case showed an escalation in criminality.

Three others were charged in connection with this drug trafficking conspiracy. Mercadys Perkins was convicted of conspiracy to distribute 50 grams or more of methamphetamine and sentenced to 6 years in federal prison on April 17, 2025. Joshua Lake and Jessica Colby have pleaded guilty and are scheduled to be sentenced in the coming weeks.

The charge against Brunker was the result of an investigation conducted by the Federal Bureau of Investigation’s Central Wisconsin Narcotics Task Force comprised of investigators from the FBI, Wisconsin State Patrol, Wisconsin Department of Criminal Investigation, Lincoln County Sheriff’s Office, Marathon County Sheriff’s Office, Portage County Sheriff’s Office, Mountain Bay Police Department, Wausau Police Department and Wisconsin National Guard Counter Drug Program. The ATF Madison Crime Gun Task Force also assisted with the case. The ATF Madison Crime Gun Task Force consists of federal agents from ATF and Task Force Officers from state and local agencies throughout the Western District of Wisconsin. The Marathon County District Attorney’s Office also assisted with the investigation. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.

MIL Security OSI –

April 29, 2025

MIL-OSI USA: VIDEO: On Fox, Cornyn Discusses Arrested Wisconsin Judge, Pres. Trump’s Border Security Success in First 100 Days

US Senate News:

Source: United States Senator for Texas John Cornyn
WASHINGTON – Today on Fox News’ The Faulkner Focus, U.S. Senator John Cornyn (R-TX) discussed the Wisconsin judge who was arrested by the Federal Bureau of Investigation (FBI) for allegedly obstructing the arrest of an illegal migrant by U.S. Immigration and Customs Enforcement (ICE), called out Democrat governors for giving unemployment benefits to migrants present in the U.S. illegally, and praised President Trump for successfully working to secure the southern border in less than 100 days after four years of failure under Joe Biden. Excerpts of Sen. Cornyn’s remarks are below, and video can be found here.
On Judge Arrested for Allegedly Obstructing Arrest of an Illegal Migrant:
“In America, no one is above the law, including public officials and judges.”
“President Trump is following through on his campaign promise and for which he received a mandate on November the 5th to enforce our immigration laws, and I support that wholeheartedly. If it means that people, including elected officials like judges, are obstructing the law and obstructing that process, they should be investigated and they should be prosecuted.”
On the Administration Warning Governors to Stop Giving Unemployment Benefits to Illegal Migrants:
“There are people who are actively opposed and resisting each and every thing that President Trump and this administration is doing.”
“Democrats aren’t doing themselves any favor by resisting even commonsense measures like this.”
“They are digging their own political grave.”
On President Trump Working to Secure the Southern Border in Less Than 100 Days:
“The border is finally under control. And we found out that it didn’t require the passage of new laws like Democrats, including President Biden, had said previously. It just required a new President and somebody committed to enforcing the law.”

MIL OSI USA News –

April 29, 2025

MIL-OSI Video: Non-Proliferation, Financing for Development & other topics – Daily Press Briefing | United Nations

Source: United Nations (Video News)

Noon Briefing by Stéphane Dujarric, Spokesperson for the Secretary-General.

Highlights:
Financing for Development
Deputy Secretary-General
Victims of Terrorism Associations’ Network
Trust Fund in Support of Victims of Sexual Exploitation and Abuse
International Court of Justice
Occupied Palestinian Territory
Lebanon/Israel
Yemen
Sudan
Afghanistan
Myanmar
Security Council
International Day
Resident Coordinator – Samoa
Financial Contribution
Briefings Today

FINANCING FOR DEVELOPMENT
This morning, the Secretary-General, as you heard, spoke at the Economic and Social Council Forum on Financing for Development.
He said that, as we prepare for the Fourth International Conference on Financing for Development in Sevilla in July, we are facing some harsh truths: donors are pulling the plug on aid commitments, the Sustainable Development Goals are dramatically off track and high borrowing costs are draining away public investments.
But, the more dangerous truth is that collaboration is being questioned with the ongoing trade wars. The Secretary-General said trade is a prime example of the benefits of international cooperation, and trade barriers are a clear and present danger to the global economy and sustainable development.
These are tough times, he said, but it is in difficult periods that the imperative for responsible, sustainable investment is even more critical.

DEPUTY SECRETARY-GENERAL
The Deputy Secretary-General, Amina Mohammed is in Montevideo, Uruguay. Today, she met with the President of Uruguay, Yamandú Orsi, to discuss the country’s development priorities and their alignment with the Sustainable Development Goals.
Later today, she will meet with several Government Ministers to discuss the partnership between the United Nations and Uruguay. She is also meeting youth groups, civil society, and of course the country team of the United Nations.
And over the weekend, she chaired the annual regional retreat with UN Resident Coordinators from across Latin America and the Caribbean.
Ms. Mohammed will leave Uruguay later today and will be back here tomorrow evening.

VICTIMS OF TERRORISM ASSOCIATIONS’ NETWORK
This morning, our friends at the Office of Counter-Terrorism launched the Victims of Terrorism Associations’ Network. This is an initiative that brings together victims of terrorism and victims’ associations from across the globe to drive collective action to support victims’ rights and needs.
The network aims to provide a safe space for victims and survivors of terrorism to support each other, build resilience and engage as advocates, as educators, and as peacebuilders.
The development of the network was supported by a financial contribution from Spain.
The network was launched during an event this morning – and it is already available on UN Webtv. More information on the website of the office of Counter-terrorism.

Full Highlights: https://www.un.org/sg/en/content/noon-briefing-highlight?date%5Bvalue%5D%5Bdate%5D=28%20April%202025

https://www.youtube.com/watch?v=CMJiomcK2rY

MIL OSI Video –

April 29, 2025

MIL-OSI Security: Texas title company employee sent to prison for orchestrating $350,000 real estate wire fraud scheme

Source: Office of United States Attorneys

McALLEN, Texas – A 55-year-old McAllen resident has been ordered to prison for conspiracy to commit wire fraud, announced U.S. Attorney Nicholas J. Ganjei.

Mayela Saby Cantu pleaded guilty Dec. 20, 2024.

Chief U.S. District Judge Randy Crane has ordered Cantu to serve 24 months in federal prison to be immediately followed by three years of supervised release. She was also ordered to pay $350,000 in restitution. At the hearing, the court heard additional evidence that detailed Cantu’s role in the scheme. The victim also reported the significant loss due to Cantu’s actions and asked the court for a sentence that would operate as a deterrent for others. In handing down the prison term, the court noted the complexity of the scheme and emphasized that Cantu’s role as an escrow officer allowed her to facilitate the scheme.

At the time of her plea, Cantu admitted she knowingly participated in a scheme that used falsified lien payoff statements, fraudulent warranty deeds and deceptive emails to mislead lenders, title companies and property buyers.

From November 2020 until her arrest, Cantu defrauded buyers and lenders in multiple property transactions while working at a McAllen title company. Using her position of trust, she facilitated closings backed by falsified documents. In one notable case, she directed others to create a fraudulent email address resembling that of a legitimate lienholder. Cantu then used the fake account to send false payoff amounts via interstate wires, leading a title company to improperly disburse more than $350,000.

Cantu facilitated additional fraudulent property transactions, including arranging closing on properties that had already been sold and accepting undisclosed cash payments. By concealing the true nature of these deals, she caused significant financial harm to the affected parties.

She was permitted to remain on bond pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.

The FBI, McAllen Police Department and Texas Department of Insurance conducted the investigation. Assistant U.S. Attorney Jose Garcia prosecuted the case.

MIL Security OSI –

April 29, 2025

MIL-OSI Security: California Man Arrested and Charged with Sexual Exploitation of a Child

Source: Office of United States Attorneys

ALBANY, NEW YORK – Devin Ravine, a/k/a Derek Johnson, age 20, of Riverside, California, was arrested on Friday on charges of sexual exploitation of a child. United States Attorney John A. Sarcone III and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

According to a criminal complaint, from on or about March 30, 2025 through April 1, 2025, Ravine persuaded and induced a Rensselaer County minor to create child sexual abuse material, which the child then sent to Ravine over the Internet. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.

United States Attorney Sarcone stated: “This case is the result of what I like to call ‘Operation It’s Not Your Fault’ – FBI agents visit schools all over the Northern District of New York to educate students about internet safety and sextortion. Our hope is to help students avoid these terrible situations, and also to encourage them to come forward if they believe they are a victim of a crime. Students may be embarrassed, ashamed, feeling that they’re at fault, afraid to tell their parents, and one of our messages is – no, it’s not your fault, and you should tell us if there are predators who have targeted you.”

FBI Special Agent in Charge Tremaroli stated: “This case truly exemplifies the strength and reach of the FBI. It should also put predators on notice, as it doesn’t matter where you’re committing these heinous crimes, we will use every resource we have to find you and ensure you can never hurt another child again.”

Ravine made an initial appearance on Friday in the Central District of California and has a detention hearing there scheduled for tomorrow. He faces at least 15 years and up to 30 years in prison, a fine of up to $250,000, and a supervised release term of at least 5 years and up to life. Ravine may also be ordered to pay restitution to the victim of his offense and forfeit any devices used in the offense. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Ravine would also have to register as a sex offender upon his release from prison.

The FBI Albany Field Office is investigating this case with assistance from the FBI Riverside Field Office, the Riverside County District Attorney’s Office, and the Riverside County Sheriff’s Office. Assistant United States Attorneys Rick Belliss and Mikayla Espinosa are prosecuting the case as part of Project Safe Childhood.

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

MIL Security OSI –

April 29, 2025

MIL-OSI Security: Iraqi Man Charged with Illegal Voting by an Alien

Source: Office of United States Attorneys

ALBANY, NEW YORK – Akeel Abdul Jamiel, age 45, formerly of South Glens Falls, New York, was charged on Friday with illegally voting in the 2020 election. United States Attorney John A. Sarcone III; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Erin Keegan, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.

According to an information filed in federal court, Jamiel, an Iraqi who was not a United Citizen, voted in the November 2020 election in Saratoga County, New York. The charge in the information is merely an accusation. The defendant is presumed innocent unless and until proven guilty.

United States Attorney Sarcone stated: “As alleged, Jamiel’s voting in the 2020 election was a callous and illegal act. We will continue to investigate and prosecute illegal schemes aimed at corrupting the election process.”

FBI Special Agent in Charge Craig L. Tremaroli stated: “Election security is and will continue to be one of the FBI’s highest national security priorities. Americans have a right to expect free and fair elections and the FBI is committed to working with our partners to seek justice for anyone trying to interfere with the democratic process.”

HSI Special Agent in Charge Erin Keegan stated: “This defendant’s alleged crimes are an insult to the democratic process and demonstrate his blatant disregard for the sanctity of American constitutional rights. I commend HSI Albany and our law-enforcement partners for their success in this unified effort.”

The charge filed against Jamiel carries a maximum term of 1 year in prison and a fine of up to $100,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

MIL Security OSI –

April 29, 2025

MIL-OSI: Exabits teams up with NEAR to push the boundaries of decentralized AI

Source: GlobeNewswire (MIL-OSI)

The merging of NEAR’s AI tools with Exabit’s scalable compute ecosystem grants developers direct access to essential AI resources, allowing them to deploy applications with enhanced speed, accuracy, and efficiency

SAN MATEO, Calif., April 28, 2025 (GLOBE NEWSWIRE) — Exabits, a compute base-layer platform that transforms GPU (graphic processing unit) clusters into AI-ready compute and tokenized financial assets, has received a NEAR Foundation Grant to enhance and aggregate essential compute resources, ensuring both privacy and verifiability, enabling the deployment of decentralized AI. Through this partnership, Exabits and NEAR will combine their expertise in computing, AI, and blockchain to advance the foundation of user-owned AI. By promoting a robust architecture, they aim to ensure that all market participants benefit and accelerate the development of AI technologies.

An ecosystem is considered closed-loop if its parts and functions are contained in a single, self-sustaining environment, with limited interactions with external entities. In the context of AI, this young yet growing industry has grown reliant on Big Tech players. With over $300 billion projected to be spent on AI this year by companies like Microsoft, Amazon, and Meta, developers and enterprises face escalating development costs and fragmented resources, impeding progress.

Through this partnership, Exabits and NEAR will build an all-in-one AI and blockchain infrastructure, providing a space for developing AI-powered applications, automated transactions, and advanced financial tools within a secure ecosystem. This collaboration will offer developers and enterprises on-demand, customizable computing resources for AI inference and training, powered by high-performance GPU hardware such as MI50, 4090, A100, and H100/H200. By prioritizing the protection and integrity of data and code, this partnership will make it easier to build privacy-preserving AI solutions within Trusted Execution Environments (TEE).

Exabits was a founding partner, alongside other reputable projects, in the launch of the Open Agents Alliance, initially introduced by the NEAR AI team. This partnership also follows Exabit’s successful completion of the inaugural AI + HZN incubator by NEAR Foundation, alongside other projects such as Ringfence, Hyperbolic, Pond, Nevermind, and Mizu.

“We have reached a critical point in AI’s development where we understand its immense potential, but projects are confronting the tough reality that accessing the infrastructure remains a challenge,” says Dr. Hoansoo Lee, Co-Founder of Exabits. “Given the critical nature of this issue, we’re excited to partner with a project like NEAR AI to offer the infrastructure and resources needed to turn concepts into real-life solutions. Together, we can help overcome these barriers put in place by major tech players and help developers benefit from optimized ecosystems.”

“We are excited to partner with Exabits, a project that shares our vision of providing developers with the flexibility and power to develop AI-focused applications without the costs and limitations previously associated with AI infrastructure,” says Cameron Dennis, Head of Ecosystem and Partnerships of NEAR AI. “This collaboration reflects our shared commitment to creating an open, scalable AI ecosystem, free from barriers placed by bigger players in the industry. This partnership is a positive step forward, and we look forward to continuing to help developers grow their projects in an inclusive and welcoming environment.”

About Exabits:
Established in 2021, Exabits is a revolutionary compute base-layer platform transforming high-end GPU clusters into accessible digital investment assets. With proprietary hardware and software, Exabits enables users to invest in GPU infrastructure, generating yield through tokenized compute assets. The company serves both Web2 enterprises and decentralized Web3 protocols, powering innovation through its scalable and secure infrastructure. To learn more, please visit https://exabits.ai/

About NEAR AI:
Near.ai is building a verifiable and private agent hosting network and AI assistant that will turn every app into a super app. It is also building a hub that supports developers and entrepreneurs with AI infrastructure, cross-chain, AI-native, blockchain, mindshare, and capital to support decentralized, User-Owned AI. https://near.ai/

Disclaimer: This is a paid post and is provided by Exabits. The statements, views, and opinions expressed in this content are solely those of the content provider and do not necessarily reflect the views of this media platform or its publisher. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. We do not guarantee any claims, statements, or promises made in this article. This content is for informational purposes only and should not be considered financial, investment, or trading advice.

Investing in crypto and mining-related opportunities involves significant risks, including the potential loss of capital. It is possible to lose all your capital. These products may not be suitable for everyone, and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. However, due to the inherently speculative nature of the blockchain sector—including cryptocurrency, NFTs, and mining—complete accuracy cannot always be guaranteed. Neither the media platform nor the publisher shall be held responsible for any fraudulent activities, misrepresentations, or financial losses arising from the content of this press release. In the event of any legal claims or charges against this article, we accept no liability or responsibility.

GlobeNewswire does not endorse any content on this page.

Legal Disclaimer: This media platform provides the content of this article on an “as-is” basis, without any warranties or representations of any kind, express or implied. We assume no responsibility for any inaccuracies, errors, or omissions. We do not assume any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information presented herein. Any concerns, complaints, or copyright issues related to this article should be directed to the content provider mentioned above.

Contact:

Exabits
ReBlonde
contact@exabits.ai

NEAR AI
Illia Polosukin
social@near.foundation

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/46929af5-171b-4335-b1b8-e82e355d07a9

The MIL Network –

April 29, 2025

MIL-OSI: XRP News: XenDex Sells More Than 50% of Its Presale Ahead of Listing on Major Exchanges

Source: GlobeNewswire (MIL-OSI)

SYDNEY, April 28, 2025 (GLOBE NEWSWIRE) — In a monumental week for XRP and the broader crypto market, XenDex is making headlines once again. Fresh off the approval of Brazil’s first XRP Spot ETF, the SEC’s withdrawal of its XRP lawsuit, and ProShares’ XRP Futures ETF approval, XenDex is riding a historic wave of momentum and investors are going all in without thinking twice.

In just about four days, XenDex has sold more than 50% of its $XDX token presale allocation, surpassing all early projections. With major exchange listings on the horizon, early supporters are racing to secure $XDX tokens at launch prices before broader exposure sends demand soaring.

Buy $XDX Now Before Presale Ends

XenDex isn’t just another project — it’s the first all-in-one decentralized exchange (DEX) built on the XRP Ledger offering AI-powered copy trading, non-custodial lending and borrowing, staking, and cross-chain trading, all in a simple, fast, and beginner-friendly platform.

Presale Key Details:

Token: $XDX
Exchange Rate: 1 XRP = 10 XDX
Minimum Buy: 150 XRP (1,500 XDX)

Join Now Before It Sells Out: https://xendex.net/presale

Confirmed Listings on Top Exchanges

Following the presale, $XDX is preparing for high-profile listings across major platforms, including:

Binance
Gate.io
MEXC
BitMart
FirstLedger
MagneticX

These upcoming listings are expected to drive significant liquidity and investor access, positioning $XDX for massive exposure and trading volume right from the start.

XenDex delivers solutions the XRP Ledger has long been missing:

AI-Powered Copy Trading — Automate trades by mirroring elite traders
Non-Custodial Lending & Borrowing — Borrow and lend your XRP and XDX tokens to earn rewards
Cross-Chain Trading — Swap and trade XRP tokens across major blockchains like Solana and BNB

With XRP market confidence exploding and infrastructure like ETFs strengthening the ecosystem, XenDex is emerging as the DeFi gateway for XRP’s new era.

Buy $XDX Now & Earn Rewards

Thousands of new investors have already joined XenDex’s Telegram and Twitter communities, locking in $XDX tokens before wider exchange exposure drives prices upward.

Presale supply is being squeezed aggressively. Exchange listings are locked in. XRP’s momentum is unstoppable.

There has never been a better moment to position yourself early. Join now before the window closes.

Visit Official XenDex Links

Website: https://xendex.net
Presale: https://xendex.net/presale
Telegram: https://t.me/xendexcommunity
Twitter/X: https://x.com/xendex_xrp
Docs: https://xdxdocs.gitbook.io

Contact:
Frank Richards
Frank@xendex.net

Disclaimer: This is a paid post provided by XenDex. The statements, views, and opinions expressed in this content are solely those of the content provider and do not necessarily reflect the views of this media platform or its publisher. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. We do not guarantee any claims, statements, or promises made in this article. This content is for informational purposes only and should not be considered financial, investment, or trading advice.Investing in crypto and mining-related opportunities involves significant risks, including the potential loss of capital. It is possible to lose all your capital. These products may not be suitable for everyone, and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. However, due to the inherently speculative nature of the blockchain sector—including cryptocurrency, NFTs, and mining—complete accuracy cannot always be guaranteed.Neither the media platform nor the publisher shall be held responsible for any fraudulent activities, misrepresentations, or financial losses arising from the content of this press release. In the event of any legal claims or charges against this article, we accept no liability or responsibility. Globenewswire does not endorse any content on this page.

Legal Disclaimer: This media platform provides the content of this article on an “as-is” basis, without any warranties or representations of any kind, express or implied. We assume no responsibility for any inaccuracies, errors, or omissions. We do not assume any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information presented herein. Any concerns, complaints, or copyright issues related to this article should be directed to the content provider mentioned above.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/05c01326-e101-43f5-92a2-2efffd95f449

The MIL Network –

April 29, 2025

MIL-OSI Security: Former labor union president admits to embezzling over $280,000 in union funds

Source: Office of United States Attorneys

CORPUS CHRISTI, Texas – A 42-year-old Corpus Christi resident has pleaded guilty to embezzling from a local labor union, announced U.S. Attorney Nicholas J. Ganjei.

Robert Cirilo, a former president of the United Steelworkers Local 13-1647 in Corpus Christi, pleaded guilty to one count of wire fraud and one count of embezzlement from a labor organization.

Cirilo admitted he made approximately 430 unauthorized transactions from union accounts for personal purchases. He also concealed those transactions by lying to union members. As part of his plea, he acknowledged the embezzlement totaled over more than $280,000.

U.S. District Judge Nelva Gonzales Ramos will impose sentencing Aug. 12. At that time, Cirilo faces up to 20 years in federal prison and a possible $250,000 maximum fine for wire fraud and up to five years and a possible $10,000 fine on the embezzlement count.

The FBI and Department of Labor’s Office of Labor Management Standards conducted the investigation. Assistant U.S. Attorneys Tyler Foster and John Marck are prosecuting the case.

MIL Security OSI –

April 29, 2025

MIL-OSI Security: Three Prison Guards Plead Guilty to Violation of Rights Under Color of Law

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

Brandon Montanari, Rohail Kahn, and Michael Williams Assaulted an Inmate at Mid-State Correctional Facility

SYRACUSE, NEW YORK – Brandon Montanari, age 34, Rohail Kahn, age 28, and Michael Williams, age 38, have each pled guilty to depriving an inmate at Mid-State Correctional Facility of his rights under color of law. United States Attorney John A. Sarcone III and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

In pleading guilty, Montanari, Kahn, and Williams admitted to assaulting an inmate at Mid-State Correctional Facility in April 2023, including punching and kicking him without cause, causing bodily injury. Each defendant admitted further that he agreed with the others to lie about the assault during an internal investigation.

At the sentencings scheduled for late July and August, each defendant faces a maximum imprisonment term of 10 years, a term of post-imprisonment supervised release of up to three years, and a maximum fine of $250,000.

FBI is investigating the case with assistance from the New York State Department of Corrections and Community Supervision Office of Special Investigations. Assistant U.S. Attorneys Michael F. Perry and Michael D. Gadarian are prosecuting the case.

MIL Security OSI –

April 29, 2025

MIL-OSI Security: Leader of Federal Pandemic Fraud Unemployment Scheme Sentenced

Source: Office of United States Attorneys

Brown Was One of 17 Defendants to Steal $341,205 Combined in Pandemic Relief Money

ABINGDON, Va. – Josef Ludwig Brown, one of the leaders of a 17 defendant conspiracy to defraud the United States, commit program fraud, and commit mail fraud in connection with a scheme to file fraudulent claims for pandemic unemployment benefits was sentenced last week to 35 months in federal prison.

Brown previously pled guilty to one count of conspiring to defraud the United States in connection with emergency benefits. Additionally, Brown was ordered to pay $119,660 in restitution.

Previously sentenced as part of the conspiracy were: Christopher Webb, 20 months; Russell Stiltner, 24 months; Jessica Lester, 19 months; Cara Camille Bailey, 19 months; Justin Meadows, 18 months; Terrence Vilacha, 18 months; Joseph Hass, 27 months; Brian Addair, 24 months; and Stephanie Amber Barton, Clinton Michael Altizer, Jeramy Blake Farmer, and Hayleigh McKenzie Wolfe were each sentenced to 12 months and 1 day.

Jonathan Webb, the individual charged with recruiting others to file fraudulent claims, mostly inmates at local jails, was sentenced to 48 months was ordered to pay $150,218 in restitution.

All defendants were also ordered to pay restitution to the Virginia Employment Commission for the amount of their individual fraudulent claims.

According to court documents, between March 2020 and September 2021, Josef Brown, Jonathan Webb, and Crystal Shaw developed a scheme to file fraudulent claims and recertifications for pandemic unemployment befits via the Virginia Employment Commission website. The scheme involved the collection of personal identification information (PII) of inmates housed at SWVRJA-Haysi and Abingdon, as well as personal friends and acquaintances of Brown, Webb, and Shaw. The conspirators used that information to file fraudulent claims and recertifications for pandemic unemployment benefits for incarcerated individuals and others who were ineligible for the benefits.

In all, the defendants stole $341,205 in pandemic relief to which they were not entitled.

As part of the Pandemic Response Accountability Committee (PRAC) Task Force, this investigation was conducted by the Special Inspector General for Pandemic Recovery. The PRAC’s 20 member Inspectors General were charged with identifying major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending. According to the United States Department of Labor, Virginia paid approximately $1.1 billion in fraudulent unemployment claims between April 1, 2020, and March 31, 2021.

Acting United States Attorney Zachary T. Lee, Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, and Virginia Attorney General Jason Miyares announced the sentences.

Agencies that assisted with this investigation included the Dickenson County Sheriff’s Office, the Southwest Virginia Regional Jail Authority, the FBI, U.S. Department of Labor, and the Virginia Employment Commission.

Special Assistant U.S. Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Danielle Stone are prosecuting the case for the United States.

MIL Security OSI –

April 29, 2025

MIL-OSI Security: Essex County Man Sentenced to Multiple Life Sentences in Prison for Murder and Other Crimes Committed in His Role as Leader of Sprawling Drug Trafficking Organization

Source: Office of United States Attorneys

NEWARK, N.J. – An Essex County man was sentenced to four life sentences on April 23, 2025 for ordering and committing three murders and for his role in a large-scale narcotics enterprise, U.S. Attorney Alina Habba announced.

Michael Healy, 44, of Montclair, New Jersey, was convicted by a federal jury in April 2024 of racketeering conspiracy, conspiracy to distribute narcotics, conspiring to murder a federal witness, three counts of murder in aid of racketeering, and related firearms offenses following a four-week trial before U.S. District Judge Michael E. Farbiarz in Newark federal court.

“Michael Healy orchestrated three murders in order to silence the victims in this case. When Healy believed that someone in his drug trafficking enterprise was cooperating with law enforcement, he demonstrated that he was willing to go to the greatest lengths possible – to commit multiple acts of murder – to protect his profitable enterprise. This sentence will prevent Healy from harming any other members of our community and will send a message that attacks on the justice system will not be tolerated.”

– U.S. Attorney Alina Habba

“Healy spent much of his life building an illegal drug trafficking enterprise, fueled by greed and violence,” FBI Acting Special Agent in Charge Terence Reilly said. “He used his power to destroy communities through the distribution of poisonous narcotics and murdered those who he perceived as a threat to his empire. Now, he will spend the rest of his life in federal prison, where his power and money won’t matter.”

According to court documents and evidence presented at trial:

In February 2018, Healy found out that one of his conspirators in the drug trafficking enterprise (DTE) was cooperating with law enforcement by providing information about the drug enterprise. Healy ordered members of the Bloods in East Orange to kill the informant, referenced in the Indictment as ‘A.S.” On Feb. 3, 2018, outside the informant’s residence in Bloomfield, New Jersey, Healy’s conspirators shot and killed a bystander, referenced in the Indictment as “Victim-1,” believing the bystander was the informant. Realizing they killed the wrong person, Healy ordered the Bloods to finish the job, and on March 12, 2018, in Bloomfield, the conspirators killed the informant while he was walking his dog in the area of his residence. On April 6, 2018, believing that another member of the enterprise – identified in the indictment as “J.C.” – might also pose a risk to the Enterprise, Healy himself shot and killed “J.C.” in Newark.

Healy’s DTE operated in and around Newark beginning in approximately 2012. Between 2003 and 2012, Healy became a member of the Tree Top PIRU set of the Bloods street gang in Maryland. In and around 2012, Healy formed and led the Healy DTE, a large and sophisticated drug distribution organization that obtained, transported and distributed large amounts of cocaine, heroin, fentanyl and marijuana. Healy used his leadership status in the Tree Top PIRU Bloods to assist him with obtaining suppliers, recruiting and controlling enterprise members, and otherwise conducting the Healy DTE’s operations.

The Healy DTE transported multi-kilogram quantities of controlled substances from California to New Jersey by various means, including private aircraft, vehicles with hidden secret compartments, and the U.S. Postal Service. The Healy DTE then processed and repackaged the controlled substances at various “stash houses” in New Jersey. The Healy DTE distributed some of the controlled substances in New Jersey, including through Bloods gang members in East Orange.

The Court sentenced Healy to four life sentences plus 360 months’ imprisonment. On Counts One (Racketeering Conspiracy), Six (Murder of a Federal Witness), and Twelve (Drug Trafficking Conspiracy), Healy was sentenced to life in prison, each term ordered to run concurrent to each other and consecutive to the prison sentences imposed on the remaining counts. On Counts Two (Murder in Aid of Racketeering for the murder of Victim-1), Five (Murder in Aid of Racketeering for the murder of A.S.), and Nine (Murder in Aid of Racketeering for the murder of J.C.), the Court imposed life sentences on each count to run consecutively. On Counts Three, Seven, and Ten (each charging Discharge of a Firearm in Furtherance of a Crime of Violence), the Court imposed consecutive 10-year sentences for a total of 360 months, ordered to run consecutively to the sentences imposed on all other counts.

Thomas Zimmerman, Tyquan Daniels, and Ali Hill – all members of the Brick City Brims subset of the Bloods street gang in East Orange – previously pleaded guilty to racketeering conspiracy for their respective roles in the murders of Victim-1 and A.S. Zimmerman was sentenced to a 37-year term of imprisonment; Daniels was sentenced to a 35-year term of imprisonment; and Hill was sentenced to a 25-year term of imprisonment. In addition, on February 22, 2024, Leevander Wade pleaded guilty to racketeering conspiracy for his roles in all three murders, and was sentenced to a term of 36 years and 8 months’ imprisonment.

U.S. Attorney Habba credited special agents of the Newark FBI Joint Organized Crime Task Force, under the direction of Acting Special Agent in Charge Terence Reilly; the Newark Police Department, under the direction of Public Safety Director Emanuel Miranda; the Essex County Prosecutors Office, under the direction of Theodore N. Stephens, II; the Union County Prosecutor’s Office, under the direction of William A. Daniel, the East Orange Police Department, under the direction of Phyllis L. Bindi; the Montclair Police Department, under the direction of Todd M. Conforti, the Maryland Department of Public Safety and Correctional Services, Intelligence and Investigative Division, under the direction of Secretary Robert Green; the Ohio State Highway Patrol, under the direction of Colonel Charles A. Jones.

The government is represented by Senior Trial Counsel Robert L. Frazer and Assistant U.S. Attorney Samantha C. Fasanello.

###

Defense counsel: Stephen Turano and Thomas Ambrosio

MIL Security OSI –

April 29, 2025

MIL-OSI Security: Former Taliban Commander Haji Najibullah Pleads Guilty to Hostage Taking and Providing Material Support for Acts of Terrorism Resulting in Death

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

Jay Clayton, the United States Attorney for the Southern District of New York, and Christopher G. Raia, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that HAJI NAJIBULLAH, a/k/a “Najibullah Naim,” a/k/a “Abu Tayeb,” a/k/a “Atiqullah,” a/k/a “Nesar Ahmad Mohammad,” pled guilty to hostage taking and providing material support for acts of terrorism resulting in death in connection with NAJIBULLAH’s role in the hostage taking of an American journalist and two Afghan nationals in Afghanistan and Pakistan in 2008 and 2009, and his leadership of Taliban fighters who carried out attacks on U.S. servicemembers in Afghanistan between 2007 and 2009, resulting in the deaths of American soldiers. NAJIBULLAH pled guilty today before U.S. District Judge Katherine Polk Failla.

U.S. Attorney Jay Clayton said: “Haji Najibullah was a Taliban commander who committed acts of terrorism against U.S. servicemembers and civilians in Afghanistan. His vicious acts of terrorism included taking hostage multiple civilians and providing material support for attacks that resulted in the deaths of brave Americans. Najibullah committed his crimes in Afghanistan over 15 years ago, and now faces justice in an American courtroom. Today’s guilty plea serves as an emphatic reminder that this Office, and our law enforcement partners, will aggressively pursue those who harm Americans through acts of terror, no matter where in the world they may be, and no matter how long it may take to achieve justice for their victims. I thank the career prosecutors of this Office, and our dedicated partners, for their work in holding Najibullah accountable for his heinous crimes.”

FBI Assistant Director in Charge Christopher G. Raia said: “For years, the FBI New York JTTF and our law enforcement partners tirelessly sought justice for the hostage taking of civilians, and also for the deaths of United States service members at the hands of Taliban fighters under Najibullah’s command. These terrorist attacks demonstrated utter disregard for humanity, and Najibullah finally admitted to his role in these premature deaths of our citizens. Today’s plea emphasizes the FBI New York JTTF’s unwavering resolve to disrupting all acts of terrorism and ensuring any individual who targets our country will be held accountable.”

As alleged in the charging instruments, court filings, and statements in the public record:

Between approximately 1996 and 2001, the Taliban controlled Afghanistan and harbored and supported terrorists, including terrorists involved in perpetrating the September 11, 2001, terrorist attacks on the U.S. After losing power in approximately October 2001 as a result of the U.S. and NATO-led invasion of Afghanistan, the Taliban engaged in a deadly insurgency campaign to regain control of the country. Beginning in the early 2000s, as part of that campaign of violence, the Taliban conducted numerous suicide bombings, targeted killings, assassinations, improvised explosive device (“IED”) attacks, paramilitary ambushes, and hostage takings against the then-government of Afghanistan, U.S. military forces and their NATO and Afghan partners, and American civilians in Afghanistan.

Between in or around 2007 and 2009, NAJIBULLAH served as a Taliban commander in Afghanistan’s Wardak Province, which borders Kabul. During that time, Taliban fighters under NAJIBULLAH’s command carried out deadly attacks against American and NATO troops and their Afghan allies, using, among other things, suicide bombers, automatic weapons, IEDs, and rocket-propelled grenades (“RPGs”) and other anti-tank weapons and explosives, including against U.S. military helicopters.

For example, on or about June 26, 2008, Taliban fighters under NAJIBULLAH’s command ambushed and attacked a U.S. military convoy in the vicinity of Wardak Province, Afghanistan, with IEDs, RPGs, and automatic weapons, killing three U.S. Army servicemembers: Sergeants First Class Matthew L. Hilton and Joseph A. McKay, and Sergeant Mark Palmateer, and their Afghan interpreter. Several other servicemembers were also injured in the attack.

In or about November 2007 and September 2008, NAJIBULLAH participated in two videorecorded interviews with a French reporter in Afghanistan. NAJIBULLAH and fighters under his command discussed how they targeted American and French troops—including a specific attack they conducted against French troops in or around August 2008. They also identified a particular location where they had used IEDs and anti-tank weaponry to destroy American military vehicles. During the interview, NAJIBULLAH further demonstrated how to operate a rocket-propelled grenade launcher to shoot troops guarding checkpoints and boasted that fighters under his command were ready to fight the “holy war,” including that they were “ready to be suicide bombers” and “put on a belt and blow themselves up if we ask them.” In September 2008, in the French reporter’s presence, NAJIBULLAH and fighters under his command attacked and destroyed an Afghan National Police outpost using automatic weapons and rockets.

On or about November 10, 2008, NAJIBULLAH and other Taliban fighters took hostage an American journalist (“U.S. Hostage-1”) and two Afghan nationals who were assisting U.S. Hostage-1 (together with U.S. Hostage-1, the “Hostages”) at gunpoint in Afghanistan. Shortly thereafter, NAJIBULLAH and his co-conspirators forced the Hostages to hike across the border from Afghanistan to Pakistan, where NAJIBULLAH and his co-conspirators detained the Hostages. For the next approximately seven months, NAJIBULLAH and his co-conspirators held the Hostages captive in Pakistan. NAJIBULLAH and his co-conspirators forced the Hostages to make numerous calls and videos seeking help, in an attempt to compel ransom payments and the release of Taliban prisoners by the U.S. Government.

* * *

NAJIBULLAH, 49, pled guilty to providing material support for acts of terrorism resulting in death, which carries a maximum sentence of life in prison, and to hostage taking, which also carries a maximum sentence of life in prison.

The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Clayton praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department. He also thanked the New York and New Jersey Port Authority Police, the Department of Defense, and the Counterterrorism Section of the Department of Justice’s National Security Division for their assistance with this investigation, as well as the Ukrainian authorities and the Justice Department’s Office of International Affairs for their assistance in the arrest and extradition of the defendant.

This prosecution is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Jacob H. Gutwillig, and David J. Robles are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.

MIL Security OSI –

April 29, 2025

MIL-OSI Economics: Chia Der Jiun: Charting a steady course in a changing world

Source: Bank for International Settlements

IMAS EXCO
Ms Carmen Wee, IMAS CEO
Ladies and Gentlemen

Good morning. I am delighted to join you today at the 28th IMAS Annual Investment Conference.

This year’s conference theme – “Navigating an Evolving Landscape” – is apt but may be understating the environment we are in today. Fundamental shifts in trade policy and the geo-strategic landscape have led us into a period of heightened uncertainty in the global economy and volatility in financial markets. In this new landscape of uncertainty and volatility, the asset management industry plays an important role in sustaining investor confidence and contributing to the resilience of markets.

Role of Asset Management Industry to Manage Uncertainty

Let me focus on 3 areas that the asset management industry can help in:

a. One, build more resilient markets;
b. Two, provide products and portfolios that meet investors’ diversification and retirement needs; and
c. Three, support better informed investors.

Resilient Markets

There are several components that contribute towards more resilient markets. Transparency, market integrity and settlement efficiency are fundamental. Regulators have a role in putting these right. Market infrastructure operators also have a role. Trading venues should be liquidity enhancing rather than liquidity fragmenting. Margin requirements should be set at levels that avoid amplifying funding stresses.

Market participants too play a role. Leverage needs to be deployed carefully to mitigate procyclical deleveraging. To be clear, market functionality has generally remained resilient through stress episodes, including through the sharp market repricing of risks and uncertainty in April. But we are also all aware of episodes where volatility spiked and market functionality deteriorated. In August last year, Japanese equities fell sharply and VIX spiked following the unwinding of leveraged carry trades. Earlier this month, 10-year Treasuries rose 50bps over a short period of time, while the dollar weakened. A commonly heard attribution has been the unwind of leveraged trades. Crowded leveraged trades are vulnerable to changing policy, economic and market conditions. Market resilience is better assured through a diversity of market participants, employing a myriad of strategies which provides depth and two-way flows. Let me give the example of Singapore’s FX market, where MAS had sought to foster a diverse ecosystem of market participants to support depth and stability.

a. In FX markets, we made efforts since 2018 via our Foreign Exchange E-Trading (“FXET”) initiative, to strengthen infrastructure capabilities. This has improved pricing and trade-fill efficiency while reducing latency. Over time, a diverse group of FX players have anchored their matching and pricing engines in Singapore to serve regional market participants. This enhancement of FX capabilities and infrastructure has supported FX price discovery and market functionality in this region during both Business-as-Usual and under stressed periods. Our eFX ecosystem continues to grow well with a diversity of market participants including platforms, banks, real money, hedge funds, and corporate treasuries. This has contributed to Singapore’s continued growth as a leading FX hub in Asia, with the average daily traded volumes crossing US$ 1 trillion in 2024.¹

At this time of heightened uncertainty, MAS is closely watching that Singapore’s foreign exchange and S$ money markets continue to function in an orderly manner. We also monitor the functionality of key funding markets in coordination with central banks globally.

Products and Portfolios that Meet Diversification and Retirement Needs

Let me turn to my second point. Asset managers are key to providing fund products that serve the savings and retirement needs for our region. Their products should contribute to portfolio diversification and help investors manage market volatility while investing for the long term. In building and delivering such products,:

a. Asset managers must have in place an effective liquidity and market risk management framework. There is a need to run regular stress testing on your portfolio risks under conditions when volatility spikes and correlations break down. Funds should also stress your ability to handle redemption spikes amidst adverse market movements. Global regulatory bodies such as the FSB and IOSCO have made calls for further enhancements to strengthen the industry’s resilience in both normal and stressed market conditions, by reinforcing consistency between the funds’ investment strategy and liquidity of fund assets, with redemption terms. In line with this, MAS will study the need to review the current framework for liquidity risk management by asset managers, and will engage the industry when ready.
b. Product distributors and providers should also ensure that marketing and advertisements are fair and balanced. Marketing should not over-emphasise product features that are not sustainable across a robust range of scenarios. A sudden withdrawal of such product features could cause a loss of confidence and a redemption spike.
c. Clear and timely disclosures should be provided to investors, to enable them to make well-informed investment decisions in fast-changing market conditions.

To provide retail investors with a wider set of investment choices, MAS is also currently consulting on a framework for private market investment funds for retail investors.

a. Private market investments, such as private equity and infrastructure, generally have longer investment horizons and a differentiated set of risk factors that are different than public market investments. Retail investors may be interested in gaining exposure to this asset class as part of a well-diversified investment portfolio.
b. We welcome feedback from all IMAS members as we work towards developing a balanced and risk-calibrated framework that can support the growth of a robust and sustainable market for such retail funds.

Support Better Informed Investors

Third, asset managers support better informed investors, through continued partnership with MAS and the MoneySense community on investor education.

When MAS launched the national financial education programme MoneySense in 2003, one of its goals was to support consumers in becoming more self-reliant in financial affairs. This was important as consumers needed to exercise their judgement, evaluate the suitability of investments for their own needs, even as more complex and varied products entered the financial markets.

Over the years, industry associations, including IMAS, community organisations and consumer bodies have been valuable partners. Together, MoneySense’s activities and programmes were launched to enhance consumers’ understanding of financial affairs, whether it is in managing money, insurance protection, or investing and planning for retirement.

IMAS’ Contributions to Industry

Let me say a few words of appreciation for IMAS’ role in galvanizing the industry.

I am happy to see IMAS’ continued efforts to bring partners together to uplift the asset management sector. As I mentioned earlier, IMAS has played an important role in improving public education through your ongoing partnerships with MoneySense, SGX and FundSingapore. IMAS has also contributed efforts towards reskilling and upskilling for industry professionals by developing the iLEARN platform since 2019 as a one-stop platform for relevant training programmes in line with market shifts.

I am also encouraged to know that IMAS has taken the lead to support its members to deepen expertise in sustainable finance. I am happy today to be part of a significant milestone – the launch of the IMAS Climate Handbook in partnership with Amundi. This practical guide will enable asset managers to integrate climate considerations into risk assessments as well as investment frameworks.

In closing, as regulator and developer of the asset management industry, we share a common goal with market participants to keep our markets stable and vibrant and to ensure its sustainable growth in the face of global headwinds. MAS will continue to partner with IMAS and its members to build a more resilient, competitive, and innovative asset management ecosystem.

Thank you and wishing you all a fulfilling Conference ahead.

MIL OSI Economics –

April 29, 2025

MIL-OSI Security: California Resident Sentenced to 100 Months in Prison for Possession with Intent to Distribute Fentanyl

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

NEWARK, N.J. – A California resident was sentenced to 100 months in prison for possessing fentanyl for distribution, U.S. Attorney Alina Habba announced.

Timothy Alan Blank, 55, of Los Angeles, California, previously pleaded guilty before U.S. District Judge Evelyn Padin in Newark federal court to an information charging him with one count of possession with intent to distribute fentanyl.

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

On March 6, 2024, Blank, transported approximately five kilograms of fentanyl in his personal vehicle from the Los Angeles, California area across the United States into the District of New Jersey. On March 8, 2024, Blank’s vehicle was stopped by law enforcement agents in Fort Lee, New Jersey when agents discovered the five kilograms of fentanyl inside the trunk area of the vehicle. Following his arrest, Blank admitted to law enforcement agents his intent to distribute the fentanyl inside of the District of New Jersey.

In addition to the prison term, Judge Padin sentenced Blank to three years of supervised release.

U.S. Attorney Alina Habba credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, Customs and Border Protection Air and Marine Operations, the Bergen County Sheriff’s Office, the Fort Lee Police Department, and the FBI Los Angeles Field Office, with the investigation that led to the sentencing.

The government is represented by Assistant U.S. Attorney Vincent D. Romano of the Criminal Division in Newark.

###

Defense counsel: Claressa L. Lowe

MIL Security OSI –

April 29, 2025

MIL-OSI: Veeco’s Laser Annealing Platform Named Production Tool of Record for New Applications at Leading-Edge Logic Manufacturers

Source: GlobeNewswire (MIL-OSI)

PLAINVIEW, N.Y., April 28, 2025 (GLOBE NEWSWIRE) — Veeco Instruments Inc. (NASDAQ: VECO) announced today two leading-edge logic customers have selected Veeco’s Laser Spike Annealing Platform as Production Tool of Record for new applications at their gate-all-around nodes. Veeco expects high-volume manufacturing orders tied to these wins as each customer ramps their advanced nodes.

“We continue to see growing adoption of our laser annealing platform for new applications as demonstrated by today’s announcement,” commented Adrian Devasahayam, Ph.D., Veeco’s Senior Vice President, Product Line Management. “Veeco’s LSA system is widely acknowledged as the optimum annealing solution for low thermal-budget applications, and as device geometries and performance requirements at advanced nodes continue to evolve, precise annealing by our LSA platform has become increasingly critical. Both wins are a culmination of ongoing collaboration with each customer and validate Veeco’s strategy of expanding its Served Available Market by investing at the leading-edge.”

Laser spike annealing is a millisecond annealing technology used in front-end semiconductor manufacturing to lower the resistance of key transistor structures by activating dopants. Veeco’s LSA system is capable of high temperature annealing while staying within reduced thermal budgets of advanced devices at leading-edge nodes. Veeco’s Laser Annealing portfolio also includes its NSA500 system, which extends annealing capabilities to low thermal budget applications, like Backside Power Delivery and Contact Annealing for advanced nodes and material modification applications such as void-removal, recrystallization, and grain growth. These annealing steps are instrumental in determining the electrical properties and performance of the resulting devices.

About Veeco
Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our laser annealing, ion beam, single wafer etch & clean, lithography, and metal organic chemical vapor deposition (MOCVD) technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve. To learn more about Veeco’s systems and service offerings, visit www.veeco.com.

To the extent that this news release discusses expectations or otherwise makes statements about the future, such statements are forward-looking and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the statements made. These factors include the risks discussed in the Business Description and Management’s Discussion and Analysis sections of Veeco’s Annual Report on Form 10-K for the year ended December 31, 2024 and in our subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and press releases. Veeco does not undertake any obligation to update any forward-looking statements to reflect future events or circumstances after the date of such statements.

Veeco Contacts:
Investors: Anthony Pappone | (516) 500-8798 | apappone@veeco.com
Media: Javier Banos | (516) 673-7328 | jbanos@veeco.com

The MIL Network –

April 29, 2025

MIL-OSI Global: Trump administration’s attempt to nix the labor rights of thousands of federal workers on ‘national security’ grounds furthers the GOP’s long-held anti-union agenda

Source: The Conversation – USA – By Bob Bussel, Professor Emeritus of History and Labor Education, University of Oregon

Airline passengers wait at a Transportation Security Administration checkpoint before boarding to flights in Denver in 2022. Patrick T. Fallon/AFP via Getty Images

As the Trump administration seeks to shrink the federal workforce, slash nonmilitary spending and curb opposition to its policies, it is taking steps beyond the firing and furloughing of thousands of government workers.

The government is also trying to strip hundreds of thousands of federal employees of their right to bargain collectively and have a voice in their conditions of employment.

Citing “national security” concerns, President Donald Trump issued an executive order on March 27, 2025, that canceled collective bargaining agreements at more than 30 federal agencies, commissions and programs, including the Department of Veterans Affairs, the Environmental Protection Agency, the National Science Foundation and the Food and Drug Administration. A judge temporarily blocked the order’s enforcement on April 25.

Over three decades of researching American unions, I’ve never witnessed such a sweeping assault on collective bargaining rights, which give workers represented by unions the ability to negotiate with employers about the terms of their employment.

But advocates of strong labor rights should have known what might be in store given the labor policies recommended by the Heritage Foundation’s Project 2025. That document, which Trump disavowed on the campaign trail in 2024 but has embraced in practice during his second term, questions whether public-sector unions should exist at all.

Keeping Americans ‘safe’

The Trump administration’s broad attack on federal workers’ rights arrived less than three weeks after an earlier, similar action by Department of Homeland Security Secretary Kristi Noem.

On March 7, Noem announced that the government was scrapping collective bargaining rights for all Transportation Security Administration workers, eliminating a 2024 agreement. She cited what she called an “irreconcilable conflict” between union representation for those 47,000 federal workers and national security.

Only a “flexible, at-will” workforce can possess the “organizational agility” needed to “safeguard our transportation systems and keep Americans safe,” she said. Employers may fire “at-will” workers at their discretion with few limitations.

Noem’s claim that unions and national security aren’t compatible strikes me as disingenuous.

Unionized workforces have displayed in recent history both patriotism and dedication in their efforts to keep Americans safe. Unionized firefighters, police officers and other first responders rushed to the World Trade Center attempting to rescue those trapped inside on 9/11, for example.

Similarly, many unionized public-sector workers risked their health during the toxic cleanup that followed the terrorist attacks.

It is also worth noting that veterans comprise approximately 30% of the federal workforce. Their history of military service attests, I would argue, to their clear record of demonstrating loyalty and patriotism.

To my eye, the argument that federal workers belonging to unions compromises national security appears to be more rooted in ideology than evidence.

Demonstrators rally in support of federal workers outside the Department of Health and Human Services on Feb. 14, 2025, in Washington.
AP Photo/Mark Schiefelbein

TSA as a case study

The TSA emerged as part of President George W. Bush’s administration’s response to the 9/11 attacks in 2001; it designated newly hired airport security officers as federal employees.

At the time, Bush insisted that TSA security officers should not belong to a union. He invoked national security concerns, arguing that union representation would undercut the “culture of urgency” needed to wage the “war on terrorism.”

TSA employees finally gained collective bargaining rights during the Obama administration when they joined the American Federation of Government Employees in 2011.

But after joining a union, TSA workers were still paid less than most federal employees. And they still couldn’t appeal disciplinary cases outside of TSA’s authority to the external board used by other federal employees that they viewed as more impartial.

However, in recent years, TSA workers have obtained wage increases and stronger rights of appeal, along with other advances contained in a 2024
collective bargaining agreement that the American Federation of Government Employees described as “groundbreaking.” These gains included uniform allowances, greater input on safety concerns and a pledge to examine expanded child care options.

Now, the union has sued Noem, another Trump administration official and the TSA itself to block the administration’s rollback of these workers’ rights and protect their 2024 contract.

JFK empowered federal workers

Federal employees had historically organized unions to advocate and lobby for their interests.

However, these unions lacked the formal ability to negotiate with the federal government in a collective bargaining process where, as labor scholar Robert Repas has explained, “decisions are made jointly, rather than unilaterally,” or ultimately at managerial discretion.

Their members did not gain collective bargaining rights until 1962 when President John F. Kennedy issued an executive order making that possible. Kennedy’s action reflected the view that government employees should not be denied basic union rights enjoyed by their private sector counterparts.

Acknowledging concerns that union rights might limit the ability to exercise centralized command and control, Kennedy’s directive exempted the FBI, CIA and other agencies charged with national security functions from collective bargaining.

Federal employees covered by the 1962 executive order were also barred from striking. They could not negotiate over wages and benefits; power to make these decisions remained in the hands of Congress.

In 1978, Congress passed the Civil Service Reform Act, which expanded the right of federal employees to collectively bargain for better working conditions, which its authors said were “in the public interest.” This law created an authority to oversee federal labor relations and established an appeals board to adjudicate worker grievances.

Although federal employees did not enjoy as many rights as most union members in the private sector, they did gain a stronger voice in determining their working conditions and accessing grievance procedures to address workplace issues and concerns.

Reagan and the air traffic controllers union

Three years later, however, President Ronald Reagan fired over 11,000 air traffic controllers who had gone on strike, even though they lacked the right to do so. The Federal Labor Relations Authority subsequently decertified their union, the Professional Air Traffic Controllers Organization – known as PATCO.

The strike’s failure seriously diminished the economic and political leverage of all U.S. unions for years. Membership in private-sector unions has declined sharply, while public-sector union membership remained relatively stable at about 1 in 3 workers. Overall, just under 10% of U.S. workers belonged to a union in 2024.

Besides seriously diminishing the labor movement’s power and influence, the PATCO strike also had important political consequences. In his book about this labor dispute, historian Joseph McCartin wrote that crushing the PATCO strike led the Republican Party “in the direction of an unambiguous antiunionism” and a heightened antipathy toward unions in the public sector.

Members of PATCO, the air traffic controllers union, hold hands and raise their arms during a strike in 1981.
Bettmann/Getty Images

Long-term goal

The White House’s attack on federal unions represents an attempt to fulfill a longtime ambition of conservative activists.

Executive orders, which can be rescinded by any president, lack the power of laws.

But Sens. Mike Lee of Utah and Marsha Blackburn of Tennessee, both Republicans, introduced a bill in March that would enshrine Trump’s executive order in law. If that bill were to become law, it would “end federal labor unions and immediately terminate their collective bargaining agreements,” Lee and Blackburn have said.

Meanwhile, eight House Republicans have asked the president to reverse course on collective bargaining rights, as have all House Democrats. A bipartisan group of senators has made a similar request.

As the courts make their determinations and political opposition gathers, the American public has, I believe, an important question to answer. Is the spirit of the Civil Service Reform Act of 1978 – that “labor organizations and collective bargaining in the civil service are in the public interest” – worth upholding?

This question warrants careful consideration and scrutiny. How the courts, Congress and the public respond will have enormous consequences for federal workers and the future of the union movement and the state of American democracy.

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

– ref. Trump administration’s attempt to nix the labor rights of thousands of federal workers on ‘national security’ grounds furthers the GOP’s long-held anti-union agenda – https://theconversation.com/trump-administrations-attempt-to-nix-the-labor-rights-of-thousands-of-federal-workers-on-national-security-grounds-furthers-the-gops-long-held-anti-union-agenda-252347

MIL OSI – Global Reports –

April 29, 2025

MIL-OSI: Block Advisors by H&R Block Now Accepting Entries for Second Annual ‘Fund Her Future’ Grant Program Created to Help Female Founders Thrive, Fuel Small Business Growth

Source: GlobeNewswire (MIL-OSI)

KANSAS CITY, Mo., April 28, 2025 (GLOBE NEWSWIRE) — Block Advisors by H&R Block today announced the return of its Fund Her Future grant program. Starting today, applications are being accepted through May 30, 2025. In its second year, the 2025 program is recognizing six women-owned small businesses with high growth and community impact potential. Grant recipients will receive a combined award of $100,000 in funding plus a year of small business services from Block Advisors valued at nearly $30,000.

Despite women being one of the fastest-growing segments of new small business owners, female entrepreneurs face more hurdles compared to male entrepreneurs when it comes to accessing capital and resources. The 2024 State of Women’s Small Business Report by Block Advisors found that 42% of women business owners who applied for a bank loan were never approved, and nearly 90% of women reported relying on personal finances and credit cards to fund their ventures due to the lack of accessible funding.

“We understand the challenges entrepreneurs face as they grow their businesses. They need more than just capital; they need trusted expertise that saves them time and puts their mind at ease,” said Jamil Khan, Chief Small Business Officer at H&R Block. “That’s why Fund Her Future provides not only financial support but also access to Block Advisors year-round small business services, including such business-critical services as tax preparation, payroll, bookkeeping and business structure analysis.”

Fund Her Future Entries Now Open

The 2025 program will award up to one small business owner a grant package of $50,000. Up to five additional recipients will receive a $10,000 grant. All winners will receive a year of access to Block Advisors small business services.

To apply, applicants must be over 18 years old and an owner of a United States-based business. Other eligibility requirements can be found on the Fund Her Future website. Businesses that demonstrate community impact are especially encouraged to apply. Submissions to the 2025 Fund Her Future small business grant program are being accepted from April 28 through May 30. Recipients will be notified by the end of July.

Driving Impact, Fueling Growth: The Success Stories of Fund Her Future 2024

Last year’s Fund Her Future grant program received more than 6,000 applicants and awarded grants to five entrepreneurs whose businesses were poised to achieve growth with the right resources.

Grant recipient Heather Jiang, who owns Allégorie, a NYC-based small-batch accessory line that turns food waste into fashion, leveraged her grant winnings to expand her product lines and hire additional staff. The Block Advisors services Jiang received as part of the grant package helped her position her company for long-term success. “There is a sense of relief in handing off my bookkeeping to a Block Advisors expert,” Jiang explained. “It frees up my time to focus on other aspects of the business. They ensure everything is handled properly. The recognition from the grant has been amazing, as well. We’ve seen a 50 percent increase in online traffic to our website since the 2024 grant was announced.”

Erica Cole is the owner of Richmond-based No Limbits, an accessible apparel brand for people with lower limb differences, those with limited dexterity in their hands and arms, individuals with sensory processing challenges and wheelchair users. When asked about the impact of winning a Fund Her Future grant, Cole shared “the funding and small business support from Block Advisors has allowed me to scale my business. It enabled me to launch my sensory-friendly collection in Walmart and acquire Buck & Buck, a leader in adaptive apparel.”

Ameka Coleman, owner of Strands of Faith based in Pearl, MS, is a former healthcare professional who started her company after noticing many healthcare patients lacked access to non-toxic haircare products that celebrated their textured hair. “This grant allowed us to onboard two more hospital networks, which significantly increases demand for our products. We’re looking at a 400% increase in revenue from this workstream,” said Coleman.

To learn more, including how to apply to the 2025 Fund Her Future Grant program, visit www.BlockAdvisors.com/FundHerFutureGrant. For more information about Block Advisors and its year-round services for small businesses, visit www.BlockAdvisors.com.

About H&R Block
H&R Block, Inc. (NYSE: HRB) provides help and inspires confidence in its clients and communities everywhere through global tax preparation services, financial products, and small-business solutions. The company blends digital innovation with human expertise and care as it helps people get the best outcome at tax time and also be better with money using its mobile banking app, Spruce. Through Block Advisors and Wave, the company helps small-business owners thrive with year-round bookkeeping, payroll, advisory, and payment processing solutions. For more information, visit H&R Block News.

The MIL Network –

April 29, 2025

MIL-OSI: Endeavor Bancorp Reports Net Income of $1.4 Million for the First Quarter of 2025; Highlighted by Loan and Deposit Growth and Net Interest Margin Expansion

Source: GlobeNewswire (MIL-OSI)

SAN DIEGO, April 28, 2025 (GLOBE NEWSWIRE) — Endeavor Bancorp (OTCQX: EDVR) (the “Company,” or “Bancorp”), the holding company for Endeavor Bank (the “Bank”), today reported net income of $1.36 million, or $0.32 per diluted share, for the first quarter of 2025, compared to net income of $1.08 million, or $0.25 per diluted share, for the fourth quarter of 2024, and $407,000, or $0.10 per diluted share, for the first quarter of 2024. First Quarter 2025 financial results are unaudited.

Results for the first quarter of 2025 included a $385,000 provision for credit losses, compared to a $374,000 provision for credit losses in the fourth quarter of 2024, and a $450,000 provision for credit losses in the first quarter of 2024. Excluding taxes and loan loss provisions, the Company’s pretax, pre-provision net income increased to $2.33 million in the first quarter of 2025, compared to $1.93 million in the preceding quarter and $1.04 million in the first quarter of 2024.

“Endeavor’s first quarter performance marks a great start to the year, underscoring our continued commitment to delivering value to our shareholders and the businesses we serve,” stated Julie Glance, CFO. “We allocated significant resources toward growing the company and expanding our team in 2024, and our first quarter operating results demonstrate the positive impact of these investments on our earnings. We experienced meaningful growth in both loans and deposits, coupled with continued margin expansion. Net loans increased 4.6% during the quarter and 34.9% year-over-year. Additionally, total deposits grew nicely during the quarter, increasing 4.2% compared to the prior quarter end and 27.2% over the prior year. For a community bank like Endeavor, deposits are the most integral component in keeping our balance sheet healthy and keeping us lending to our business clients. We will continue to focus on deposit gathering in the year ahead, with an emphasis on bringing in full client relationships to grow our core deposit base.”

Income Statement
Strong first quarter earnings were driven by loan growth and earning asset rates. Total interest income on loans and bank deposits and investments was $11.1 million, an increase of $365,000 compared to the preceding quarter, while total interest expenses decreased $130,000 during the same timeframe. Net interest income was $7.0 million in the first quarter of 2025, which was an increase of $495,000, or 7.6% compared to the preceding quarter and a 39.5% increase compared to the first quarter of 2024.

“The 15-basis point increase in our net interest margin during the first quarter of 2025, compared to the prior quarter, was primarily the result of strong loan growth, in addition to improving funding costs,” said Dan Yates, CEO. “In the current rate environment, we continue to actively manage our asset-liability mix to protect our net interest margin, while ensuring competitive loan and deposit pricing across our portfolio.”

The Company’s net interest margin increased 15 basis points to 4.12% in the first quarter of 2025 compared to 3.97% in the fourth quarter of 2024 and increased 44 basis points compared to 3.68% in the first quarter of 2024. The yield on total earning assets remained strong, decreasing only 2 basis points during the first quarter of 2025 to 6.52%, compared to 6.54% in the preceding quarter, and up from 6.23% in the first quarter of 2024. The cost of deposits decreased to 2.58% in the first quarter, compared to 2.76% in the fourth quarter, and unchanged from 2.76% in the first quarter of 2024.

Non-Interest income was $183,000 in the first quarter of 2025, an increase of $23,000 or 14% compared to the fourth quarter of 2024, and a slight increase compared to $151,000 in the first quarter of 2024.

Non-Interest expense was $4.86 million in the first quarter of 2025, an increase of $112,000 compared to the fourth quarter of 2024, and an increase of $725,000 compared to the first quarter of 2024. The higher expenses year-over-year were largely due to strategic investment in staff throughout 2024. “During 2024, Endeavor made significant investments in our team, increasing headcount by over 30%. These investments are now yielding results, as revenue growth driven by our expanded capabilities has more than offset the increase in expenses this quarter. The strong improvement in the efficiency ratio is also evidence that the 2024 additional hires are now fully engaged and productive driving the efficiency ratio from 79.9% in first quarter 2024, to 71.2% in fourth quarter 2024, to 67.6% in first quarter 2025. We have fewer new hires planned for 2025, and as we continue to leverage our expanded team we are well positioned for additional earnings growth throughout the remainder of the year,” said Yates.

A significant portion of the annual board compensation will be paid in the second quarter of 2025 in contrast to 2024 in which the compensation was $312,000 in the first quarter. Adjusting the first quarter 2025 net income for the timing of board compensation and the annual expense for a contract negotiation, net income would have been reduced to $1.2 million in first quarter 2025.

The Company’s annualized return on average equity for the first quarter of 2025 was 11.68%, compared to 9.35% in the fourth quarter of 2024 and 3.79% in the first quarter of 2024. The annualized return on average assets for the first quarter of 2025 was 0.79% compared to 0.65% in the fourth quarter of 2024 and 0.29% in the first quarter of 2024.

Balance Sheet
Total assets increased by $26.2 million, or 3.9%, during the first quarter of 2025 to $704.6 million at March 31, 2025, compared to $678.3 million at December 31, 2024, and increased $138.7 million, or 24.5%, compared to March 31, 2024. Balance sheet liquidity remains strong with cash balances of $80.9 million, which represents 11.5% of total assets as of March 31, 2025. The Company’s bond portfolio increased $609,000 during the first quarter of 2025 to $26.4 million as of March 31, 2025, representing 3.7% of total assets. Total available borrowing capacity through the Federal Home Loan Bank and the Federal Reserve discount window totaled $210.0 million as of quarter end.

“Our results for the first quarter emphasized the effort of our strong, experienced team, and our commitment to expanding our brand of business banking, which includes growing both sides of the balance sheet while maintaining strong credit quality,” said Steve Sefton, President. “Loan growth and new loan originations remained strong during the first quarter of 2025, as we continue to seek out high quality lending opportunities in our markets.”

Total loans outstanding increased $26.0 million, or 4.6%, during the first quarter of 2025 to $597.8 million at March 31, 2025, compared to $571.8 million three months earlier, and increased $154.6 million, or 34.9%, when compared to $443.2 million a year earlier. Total non-performing loans decreased to 0.40% of the total loan portfolio as of March 31, 2025, compared to 0.46% in the prior quarter. The Company had no net charge offs during the first quarter of 2025, or in the prior quarter.

Total deposits increased $24.9 million, or 4.1%, during the quarter to $626.2 million at March 31, 2025, compared to $601.2 million three months earlier, and increased $134.0 million, up 27.2% when compared to $492.2 million a year earlier. The loan to deposit ratio was 95.5% at March 31, 2025, compared to 95.1% at December 31, 2024, and 90.1% as of March 31, 2024.

As a result of its participation in a reciprocal deposit placement network, the Bank accepted “reciprocal” deposits from other institutions, enabling the Bank to offer customers FDIC insurance on accounts in excess of the typical $250,000 FDIC insurance limit. Although the reciprocal deposits maintained through the network are core deposits seeking FDIC insurance, the FDIC rules indicate that reciprocal deposits aggregating over 20% of total liabilities are classified as deposits obtained by or through a deposit broker. The total reciprocal deposits reported as brokered deposits were $82.6 million at March 31, 2025, and $113.7 million as of December 31, 2024. To support strong loan growth, the Company is utilizing a conservative amount of wholesale deposits. As of March 31, 2025, total wholesale deposits, excluding the reciprocal deposits, was $60.2 million, representing 8.9% of total deposits compared to $60.7 million, or 10.1% of total deposits as of December 31, 2024.

Shareholders’ equity was $47.7 million at March 31, 2025, compared to $46.0 million at December 31, 2024, and $42.5 million at March 31, 2024. Tangible book value per share increased to $13.49 at March 31, 2025, compared to $13.20 three months earlier and $12.64 a year earlier.

Capital
The Bank’s Tier 1 leverage ratio was 10.57% as of March 31, 2025, compared to 10.90% at December 31, 2024. The Tier 1 risk-based capital ratio was 10.47% as of March 31, 2025, compared to 10.71% on December 31, 2024, and the Total risk-based capital ratio was 11.65% compared to 11.90% three months earlier, all of which were well above regulatory minimums.

About Endeavor Bancorp
Endeavor Bancorp, the holding company for Endeavor Bank, is primarily owned and operated by Southern Californians for Southern California businesses and their owners. The bank’s focus is local: local decision-making, local board, local founders, local owners, and relationships with local clients in Southern California.

Headquartered in downtown San Diego in the Symphony Towers building, the Bank also operates a loan production and executive administration office in Carlsbad and a branch office in La Mesa. Endeavor Bank provides traditional business banking services across a broad spectrum of industries and specialties. Unique to the bank is its consultative banking approach that partners our business clients with Endeavor Bank’s senior management. Together, we build strategies and provide resources that solve problems, plan for the future, and help clients’ efforts to grow revenues and profits. Endeavor Bancorp trades on the OTCQX® Best Market under the symbol “EDVR.” Visit www.endeavor.bank for more information.

Endeavor Bank is rated by Bauer Financial as Five-Star “Superior” for strong financial performance, the top rating given by the independent bank rating firm. DepositAccounts.com awarded Endeavor Bank an A rating.

EDVR Shareholders
With many of our shareholders transferring their EDVR shares to their brokerage companies, along with ongoing trading taking place, Bancorp may not have the most current shareholder contact information. If you are an EDVR shareholder and would like to receive information via a more timely method, please complete the Shareholder Communication Preference Form on our website: https://www.bankendeavor.com/investor-relations so we can keep you updated on EDVR news, and invite you to various shareholder networking events throughout the year.

Forward-Looking Statements
This press release includes “forward-looking statements,” as such term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on the current beliefs of the Company’s directors and executive officers (collectively, “Management”), as well as assumptions made by and information currently available to the Company’s Management. All statements regarding the Company’s business strategy and plans and objectives of Management of the Company for future operations, are forward-looking statements. When used in this press release, the words “anticipate,” “believe,” “estimate,” “expect” and “intend” and words or phrases of similar meaning, as they relate to the Company or the Company’s Management, are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from the Company’s expectations (“cautionary statements”) are loan losses, rapid and unanticipated deposit withdrawals, unavailability of sources of liquidity, additional regulatory requirements that may be imposed on community banks or banks generally, changes in interest rates, loss of key personnel, lower lending limits and capital than competitors, regulatory restrictions and oversight of the Company, the secure and effective implementation of technology, risks related to the local and national economy, the effect on customers, collateral value and property insurance markets of the recent wildfires in the Los Angeles metropolitan area and similar events in the future, changes in real estate values, the Company’s implementation of its business plans and management of growth, loan performance, interest rates, and regulatory matters, the effects of trade, monetary and fiscal policies, inflation, and changes in accounting policies and practices. Based upon changing conditions, if any one or more of these risks or uncertainties materialize, or if any underlying assumptions prove incorrect, actual results may vary materially from those described as anticipated, believed, estimated, expected, or intended. The Company does not intend to update these forward-looking statements.


SELECTED FINANCIAL DATA
(In thousands of dollars, except for ratios and per share amounts)
Unaudited
				Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
	(Consolidated)			(Consolidated)			(Consolidated)
SUMMARY OF OPERATIONS
Interest income	$	11,119		$	10,754		$	8,516
Interest expense		4,106			4,236			3,488
Net interest income		7,013			6,518			5,029
Provision for credit losses		385			374			450
Net interest income after loss provision		6,628			6,144			4,580
Non-interest income		183			160			151
Non-interest expense		4,864			4,752			4,139
Income before tax		1,947			1,552			591
Federal income tax expense		372			296			117
State income tax expense		214			171			66
Net income	$	1,361		$	1,084		$	407

Core pretax earnings*	$	2,332		$	1,926		$	1,041
*excludes taxes and provision for loan losses

PER COMMON SHARE DATA
Number of shares outstanding (000s)*		3,503			3,494			3,422
*Adjusted for May 2024 Stock Dividend
Earnings per share, basic	$	0.39		$	0.31		$	0.12
Earnings per share, diluted	$	0.32		$	0.25		$	0.10
Book Value per share	$	13.61		$	13.17		$	12.43

BALANCE SHEET DATA
Assets	$	704,564		$	678,332		$	565,881
Investments securities		26,385			25,777			13,432
Total loans, net of unearned income		597,846			571,817			443,203
Total deposits		626,165			601,219			492,169
Borrowings		26,721			26,697			27,090
Shareholders’ equity		47,667			46,009			42,526
Loan to Deposit ratio		95.48	%		95.11	%		90.05	%
Wholesale Deposits to Total Deposits		8.90	%		10.10	%

AVERAGE BALANCE SHEET DATA
Average assets	$	697,617		$	660,748		$	557,691
Average total loans, net of unearned income		589,037			549,340			434,999
Average total deposits		618,844			582,583			514,445
Average shareholders’ equity		47,256			46,117			43,247

ASSET QUALITY RATIOS
Net (charge-offs) recoveries	$	–		$	–		$	–
Net (charge-offs) recoveries to average loans		0.00	%		0.00	%		0.74	%
Non-performing loans as a % of loans		0.40	%		0.46	%		0.07	%
Non-performing assets as a % of assets		0.34	%		0.38	%		0.05	%
Allowance for loan losses as a % of total loans		1.36	%		1.37	%		1.45	%
Non-performing assets as a % of allowance for loan losses		29.60	%		33.27	%		4.66	%

FINANCIAL RATIOSSTATISTICS
Annualized return on average equity		11.68	%		9.35	%		3.79	%
Annualized return on average assets		0.79	%		0.65	%		0.29	%
Net interest margin		4.12	%		3.97	%		3.68	%
Efficiency ratio		67.59	%		71.17	%		79.91	%

CAPITAL RATIOS
Tier 1 leverage ratio — Bank		10.57	%		10.90	%		12.18	%
Common equity tier 1 ratio — Bank		10.47	%		10.71	%		12.49	%
Tier 1 risk-based capital ratio — Bank		10.47	%		10.71	%		12.49	%
Total risk-based capital ratio –Bank		11.65	%		11.90	%		13.69	%

TCE/TA *		6.77	%		6.78	%		7.52	%
Tangible Book Value per Share	$	13.49		$	13.20		$	12.64

*Non-GAAP financial measure.
Unaudited financials 2025

Endeavor Bancorp Contact Information: 
(858) 230.5185 
Dan Yates, CEO 
dyates@bankendeavor.com  
 
(858) 230.4243 
Steve Sefton, President 
ssefton@bankendeavor.com

The MIL Network –

April 29, 2025

MIL-OSI: NANO Nuclear Announces Full Dismissal of Nevada Lawsuit

Source: GlobeNewswire (MIL-OSI)

New York, N.Y., April 28, 2025 (GLOBE NEWSWIRE) — NANO Nuclear Energy Inc. (NASDAQ: NNE) (“NANO Nuclear” or “the Company”), a leading advanced nuclear energy and technology company focused on developing clean energy solutions, today announced that on Thursday, April 24, 2025, a Las Vegas judge granted in full two motions to dismiss brought by NANO Nuclear Energy Inc. and its officers and directors in a putative shareholder derivative action entitled Latza v. Walker, et al., Case No. A-24-900423-B, Clark County, Nevada District Court.

“We are extremely pleased that this case has been so promptly adjudicated and dismissed in its entirety,” said Jay Yu, Founder and Chairman of NANO Nuclear. “This ruling will allow us to devote more of our time and attention to NANO Nuclear’s primary mission of becoming the leading commercially focused advanced nuclear energy technology company in America. We thank our legal team at Ellenoff Grossman & Schole for their insight and hard work in achieving this result.”

About NANO Nuclear Energy, Inc.

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

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

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

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

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

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

For further NANO Nuclear information, please contact:

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

PLEASE FOLLOW OUR SOCIAL MEDIA PAGES HERE:

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

Cautionary Note Regarding Forward Looking Statements

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

The MIL Network –

April 28, 2025

MIL-OSI USA: Deputy Secretary Edgar Joins HSI Drug Trafficking Warrant Operation in Los Angeles

Source: US Federal Emergency Management Agency

Headline: Deputy Secretary Edgar Joins HSI Drug Trafficking Warrant Operation in Los Angeles

strong>Los Angeles, CA – On Friday, Homeland Security Deputy Secretary Troy Edgar joined Homeland Security Investigations (HSI) Los Angeles in a warrant operation that resulted in the arrest of a suspected drug trafficker

“Day in and day out, our HSI agents are empowered under the leadership of President Trump and Secretary Noem to remove gang members, criminals, and drugs from our communities,” said Deputy Secretary Edgar

“I’m thankful for the frontline heroes who keep Americans safe from the worst of the worst law breakers

”

The HSI Los Angeles Special Response Team executed three state search warrants that resulted in the arrest of wanted fugitive

Search warrants were executed in La Puente, Pomona, and Compton, California regarding an ongoing drug trafficking investigation for cocaine, fentanyl, and methamphetamine

Pedro Sainz Minjarez was arrested for an outstanding warrant regarding possession with intent to distribute a controlled substance and conspiracy

This is a joint investigation involving the Riverside Sheriff’s Office, United States Customs and Border Protection, and the United States Marshals Service

Deputy Secretary Edgar, coleader of the HSTF, also led a meeting Friday with partners in Los Angeles to discuss delivering President Trump’s priorities

Under the HSTF, the Department of Homeland Security and Department of Justice have joined in a historic partnership to tackle crime and keep Americans safe

Participants of the meeting included representatives from the Los Angeles HSI, ATF, ERO, FBI, and U

S

Attorney offices

###

MIL OSI USA News –

April 28, 2025

MIL-OSI USA: Milwaukee Judge Obstructed Arrest of Illegal Alien Accused of Strangulation, Battery, and Domestic Abuse

Source: US Federal Emergency Management Agency

Headline: Milwaukee Judge Obstructed Arrest of Illegal Alien Accused of Strangulation, Battery, and Domestic Abuse

On April 18, 2025, ICE assisted by deputized FBI law enforcement officials carried out a targeted operation to arrest Ruiz at the Milwaukee County Courthouse

Judge Dugan intentionally misdirected ICE agents away from this criminal illegal alien to obstruct the arrest and try to help him evade arrest

Thankfully, our FBI partners chased down this illegal alien, arrested him and removed him from American communities

Image

Statement From Assistant Secretary Tricia McLaughlin:

“This criminal illegal alien has a laundry list of violent criminal charges including strangulation and suffocation, battery, and domestic abuse

Ruiz illegally entered the US twice

“Since President Trump was inaugurated, activist judges have tried to obstruct President Trump and the American people’s mandate to make America safe and secure our homeland— but this judge’s actions to shield an accused violent criminal illegal alien from justice is shocking and shameful

“We are thankful for our partners at the FBI for helping remove this accused criminal from America’s streets

If you are here illegally and break the law, we will hunt you down, arrest you and lock you up

That’s a promise

”

MIL OSI USA News –

April 28, 2025

MIL-OSI: Provident Financial Holdings Reports Third Quarter of Fiscal Year 2025 Results

Source: GlobeNewswire (MIL-OSI)

Net Income of $1.86 million in the March 2025 Quarter, Up 113% from the Sequential Quarter and Up 24% from the Comparable Quarter Last Year

Net Interest Margin of 3.02% in the March 2025 Quarter, Up 11 Basis Points from the Sequential Quarter and 28 Basis Points from the Comparable Quarter Last Year

Loans Held for Investment of $1.06 Billion at March 31, 2025, Up 1% from June 30, 2024

Total Deposits of $901.3 Million at March 31, 2025, Up 2% from June 30, 2024

Non-Performing Assets to Total Assets Ratio of 0.11% at March 31, 2025, Down from 0.20% at June 30, 2024

RIVERSIDE, Calif., April 28, 2025 (GLOBE NEWSWIRE) — Provident Financial Holdings, Inc. (“Company”), NASDAQ GS: PROV, the holding company for Provident Savings Bank, F.S.B. (“Bank”), today announced earnings for the third quarter of the fiscal year ending June 30, 2025.

The Company reported net income of $1.86 million, or $0.28 per diluted share (on 6.73 million average diluted shares outstanding), for the quarter ended March 31, 2025, up 24 percent from net income of $1.50 million, or $0.22 per diluted share (on 6.94 million average diluted shares outstanding), in the comparable period a year ago. The increase was due primarily to a $653,000 increase in net interest income and a $391,000 recovery of credit losses (in contrast to a $124,000 provision for credit losses in the comparable period a year ago), partly offset by a $688,000 increase in non-interest expense (primarily attributable to higher salaries and employee benefits and other operating expenses).

“The operating environment for Provident has improved over the course of this fiscal year. Our net interest margin has improved each quarter subsequent to June 30, 2024, loan and deposit balances have grown for two consecutive quarters, borrowings have declined for two consecutive quarters, and credit quality remains strong,” stated Donavon P. Ternes, President and Chief Executive Officer of the Company. “We remain active in our stock repurchase plan and continue to maintain our quarterly cash dividend at a consistent level,” concluded Ternes.

Return on average assets was 0.59 percent for the third quarter of fiscal 2025, compared to 0.28 percent in the second quarter of fiscal 2025 and 0.47 percent for the third quarter of fiscal 2024. Return on average stockholders’ equity for the third quarter of fiscal 2025 was 5.71 percent, compared to 2.66 percent for the second quarter of fiscal 2025 and 4.57 percent for the third quarter of fiscal 2024.

On a sequential quarter basis, the $1.86 million net income for the third quarter of fiscal 2025 reflects a 113 percent increase from $872,000 in the second quarter of fiscal 2025. The increase was primarily attributable to a $391,000 recovery of credit losses (in contrast to a $586,000 provision for credit losses in the prior sequential quarter), and a $453,000 increase in net interest income (primarily due to a higher net interest margin). Diluted earnings per share for the third quarter of fiscal 2025 were $0.28 per share, up 115 percent from $0.13 per share in the second quarter of fiscal 2025.

For the nine months ended March 31, 2025, net income decreased $769,000, or 14 percent, to $4.63 million from $5.40 million in the comparable period in fiscal 2024. Diluted earnings per share for the nine months ended March 31, 2025 decreased 12 percent to $0.68 per share (on 6.80 million average diluted shares outstanding) from $0.77 per share (on 6.98 million average diluted shares outstanding) for the comparable nine-month period last year. The decrease was primarily attributable to a $1.81 million increase in non-interest expense (primarily due to an increase in salaries and employee benefits, premises and occupancy, equipment and other operating expenses), partly offset by a $451,000 higher recovery of credit losses, a $177,000 increase in non-interest income and a $115,000 increase in net interest income.

In the third quarter of fiscal 2025, net interest income increased $653,000 or eight percent to $9.21 million from $8.56 million for the same quarter last year. The increase in net interest income was due to a higher net interest margin, partly offset by a lower average balance of interest-earning assets. The net interest margin for the third quarter of fiscal 2025 increased 28 basis points to 3.02 percent from 2.74 percent in the same quarter last year. The increase in net interest margin was due to increased yields on interest-earning assets outpacing increased funding costs. The average yield on interest-earning assets increased 32 basis points to 4.73 percent in the third quarter of fiscal 2025 from 4.41 percent in the same quarter last year. In contrast, our average funding costs increased by five basis points to 1.91 percent in the third quarter of fiscal 2025 from 1.86 percent in the same quarter last year. The average balance of interest-earning assets decreased two percent to $1.22 billion in the third quarter of fiscal 2025 from $1.25 billion in the same quarter last year, primarily due to decreases in the average balance of investment securities and loans receivable, partly offset by an increase in interest-earning deposits.

Interest income on loans receivable increased $685,000, or five percent, to $13.37 million in the third quarter of fiscal 2025 from $12.68 million in the same quarter of fiscal 2024. The increase was due to a higher average loan yield, partly offset by a lower average loan balance. The average yield on loans receivable increased 32 basis points to 5.06 percent in the third quarter of fiscal 2025 from 4.74 percent in the same quarter last year. Adjustable-rate loans of approximately $130.9 million repriced downward in the third quarter of fiscal 2025 by approximately four basis points, from a weighted average rate of 7.56 percent to 7.52 percent. However, the overall increase in average yield was driven by an upward repricing of adjustable mortgage loans during the last 12 months. The average balance of loans receivable decreased $14.6 million, or one percent, to $1.06 billion in the third quarter of fiscal 2025 from $1.07 billion in the same quarter last year. Total loans originated for investment in the third quarter of fiscal 2025 were $27.9 million, up 53 percent from $18.2 million in the same quarter last year, while loan principal payments received in the third quarter of fiscal 2025 were $23.0 million, down 19 percent from $28.5 million in the same quarter last year.

Interest income from investment securities decreased $58,000, or 11 percent, to $459,000 in the third quarter of fiscal 2025 from $517,000 for the same quarter of fiscal 2024. This decrease was attributable to a lower average balance, partly offset by a higher average yield. The average balance of investment securities decreased $23.0 million, or 16 percent, to $118.4 million in the third quarter of fiscal 2025 from $141.4 million in the same quarter last year. The decrease in the average balance was due to scheduled principal payments and prepayments of investment securities. The average yield on investment securities increased nine basis points to 1.55 percent in the third quarter of fiscal 2025 from 1.46 percent for the same quarter last year. The increase in the average yield was primarily attributable to a lower premium amortization during the current quarter in comparison to the same quarter last year ($86,000 vs. $124,000) due to lower total principal repayments ($5.3 million vs. $5.7 million) and, to a lesser extent, the upward repricing of adjustable-rate mortgage-backed securities.

In the third quarter of fiscal 2025, the Bank received $213,000 in cash dividends from the Federal Home Loan Bank (“FHLB”) – San Francisco stock and other equity investments, up one percent from $210,000 in the same quarter last year, resulting in an average yield of 8.30 percent in the third quarter of fiscal 2025 compared to 8.84 percent in the same quarter last year. The average balance of FHLB – San Francisco stock and other equity investments in the third quarter of fiscal 2025 was $10.3 million, up from $9.5 million in the same quarter of fiscal 2024.

Interest income from interest-earning deposits, primarily cash deposited at the Federal Reserve Bank (“FRB”) of San Francisco, was $389,000 in the third quarter of fiscal 2025, down $8,000 or two percent from $397,000 in the same quarter of fiscal 2024. The decrease was due to a lower average yield, partly offset by a higher average balance. The average yield earned on interest-earning deposits in the third quarter of fiscal 2025 was 4.42 percent, down 98 basis points from 5.40 percent in the same quarter last year. The decrease in the average yield was due to a lower average interest rate on the FRB’s reserve balances resulting from decreases in the targeted federal funds rate during the comparable periods. The average balance of the Company’s interest-earning deposits increased $6.1 million, or 21 percent, to $35.2 million in the third quarter of fiscal 2025 from $29.1 million in the same quarter last year.

Interest expense on deposits for the third quarter of fiscal 2025 was $2.75 million, an increase of $71,000 or three percent from $2.68 million for the same period last year. The increase was attributable to higher rates paid on deposits, partly offset by a lower average balance. The average cost of deposits was 1.26 percent in the third quarter of fiscal 2025, up eight basis points from 1.18 percent in the same quarter last year, primarily due to a greater proportion of time deposits, including brokered certificates of deposit which carry higher interest rates. The average balance of deposits decreased $25.8 million, or three percent, to $885.0 million in the third quarter of fiscal 2025 from $910.8 million in the same quarter last year.

Transaction account balances, or “core deposits,” decreased $23.1 million, or four percent, to $591.4 million at March 31, 2025 from $614.5 million at June 30, 2024, while time deposits increased $36.0 million, or 13 percent, to $309.9 million at March 31, 2025 from $273.9 million at June 30, 2024. As of March 31, 2025, brokered certificates of deposit (which amounts are reflected in time deposits above) totaled $129.8 million, down $2.0 million or two percent from $131.8 million at June 30, 2024. The weighted average cost of brokered certificates of deposit was 4.34 percent and 5.18 percent (including broker fees) at March 31, 2025 and June 30, 2024, respectively.

Interest expense on borrowings, consisting of FHLB advances, for the third quarter of fiscal 2025 decreased $102,000, or four percent, to $2.47 million from $2.57 million for the same period last year. The decrease was primarily the result of a lower average cost and, to a lesser extent, a lower average balance. The average cost of borrowings decreased 11 basis points to 4.52 percent in the third quarter of fiscal 2025 from 4.63 percent in the same quarter last year. The average balance of borrowings decreased $1.8 million, or one percent, to $221.8 million in the third quarter of fiscal 2025 from $223.6 million in the same quarter last year.

At March 31, 2025, the Bank had approximately $269.8 million of remaining borrowing capacity at the FHLB. Additionally, the Bank has a remaining borrowing facility of approximately $151.0 million with the FRB of San Francisco and an unused unsecured federal funds borrowing facility of $50.0 million with its correspondent bank. The total available borrowing capacity across all sources totaled approximately $470.8 million at March 31, 2025.

During the third quarter of fiscal 2025, the Company recorded a recovery of credit losses totaling $391,000, which included a $12,000 recovery related to unfunded loan commitment reserves. This compares to a $124,000 provision for credit losses in the same quarter last year and a $586,000 provision in the second quarter of fiscal 2025 (sequential quarter). The recovery of credit losses recorded in the third quarter of fiscal 2025 was primarily attributable to improved qualitative factors related to single-family residential collateral, partly offset by a lengthening of the average loan life due to lower estimated loan prepayments as of March 31, 2025, compared to December 31, 2024.

Non-performing assets, comprised solely of non-accrual loans secured by properties located in California, decreased $1.2 million or 46 percent to $1.4 million, which represented 0.11 percent of total assets at March 31, 2025, compared to $2.6 million, which represented 0.20 percent of total assets at June 30, 2024. At March 31, 2025, non-performing loans were comprised of seven single-family loans and one multi-family loan, while at June 30, 2024, non-performing loans were comprised of 10 single-family loans. At both dates, the Bank had no real estate owned and no loans 90 days or more past due that were still accruing interest. Additionally, there were no loan charge-offs during the quarters ended March 31, 2025 and 2024.

The January 2025 wildfires in Los Angeles, California did not have a material impact on the Company’s operations or the Bank’s customers. The Bank’s branches and facilities remained operational throughout the wildfire events, and there were no significant disruptions to customer services or business activities. Additionally, the Bank did not have any significant credit exposure or financial impact attributable to the wildfires.

Classified assets were $6.8 million at March 31, 2025, consisting of $1.7 million of loans in the special mention category and $5.1 million of loans in the substandard category. Classified assets at June 30, 2024 were $5.8 million, consisting of $1.1 million of loans in the special mention category and $4.7 million of loans in the substandard category.

The allowance for credit losses on loans held for investment was $6.6 million, or 0.62 percent of gross loans held for investment, at March 31, 2025, down from $7.1 million, or 0.67 percent of gross loans held for investment, at June 30, 2024. The decrease in the allowance for credit losses was due primarily to improved qualitative factors related to single-family residential collateral, partially offset by an increase in the estimated average life of the loan portfolio, reflecting lower loan prepayment expectations as of March 31, 2025. Management believes, based on currently available information, the allowance for credit losses is sufficient to absorb expected losses inherent in loans held for investment at March 31, 2025.

Non-interest income increased by $59,000, or seven percent, to $907,000 in the third quarter of fiscal 2025 from $848,000 in the same period last year, due primarily to a $43,000 increase in loan servicing and other fees and a $55,000 increase in other fees (primarily attributable to an increase in the unrealized gain on other equity investments). These increases were partly offset by decreases of $26,000 and $13,000 in card and processing fees and deposit account fees, respectively, primarily due to lower transaction volumes and reduced customer activity. On a sequential quarter basis, non-interest income increased $63,000, or seven percent, primarily due to an increase in loan servicing and other fees.

Non-interest expense increased $688,000, or 10 percent, to $7.86 million in the third quarter of fiscal 2025 from $7.17 million for the same quarter last year, primarily due to a $236,000 increase in salaries and employee benefits expenses and a $235,000 increase in other operating expenses. The higher salaries and employee benefits expenses was primarily due to higher compensation expenses, a higher accrual adjustment for the supplemental executive retirement plan expense, higher group insurance expenses and higher equity incentive expenses, partly offset by a decrease in retirement plan benefit expenses. The increase in other operating expenses was primarily attributable to a $239,000 litigation settlement expense. On a sequential quarter basis, non-interest expense increased $62,000, or one percent as compared to $7.79 million in the second quarter of fiscal 2025, due primarily to the litigation settlement expense, partly offset by decreases in salaries and employee benefits expenses, premises and occupancy expenses and professional expenses.

The Company’s efficiency ratio, defined as non-interest expense divided by the sum of net interest income and non-interest income, in the third quarter of fiscal 2025 was 77.64 percent, a slight increase from 76.20 percent in the same quarter last year but an improvement from 81.15 percent in the second quarter of fiscal 2025 (sequential quarter). The increase in the efficiency ratio during the current quarter in comparison to the comparable quarter last year was due to higher non-interest expense relative to total net interest income plus non-interest income.

The Company’s provision for income taxes was $797,000 for the third quarter of fiscal 2025, up 29 percent from $620,000 in the same quarter last year and up 126 percent from $352,000 for the second quarter of fiscal 2025 (sequential quarter). The increase during the current quarter compared to both the sequential quarter and same quarter last year was due to an increase in pre-tax income. The effective tax rate in the third quarter of fiscal 2025 was 30.0 percent as compared to 29.3 percent in the same quarter last year and 28.8 percent for the second quarter of fiscal 2025 (sequential quarter).

The Company repurchased 51,869 shares of its common stock at an average cost of $15.30 per share during the quarter ended March 31, 2025. As of March 31, 2025, a total of 293,132 shares remained available for future purchase under the Company’s current repurchase program.

The Bank currently operates 13 retail/business banking offices in Riverside County and San Bernardino County (Inland Empire).

The Company will host a conference call for institutional investors and bank analysts on Tuesday, April 29, 2025 at 9:00 a.m. (Pacific) to discuss its financial results. The conference call can be accessed by dialing 1-800-715-9871 and referencing Conference ID number 7361828. An audio replay of the conference call will be available through Tuesday, May 6, 2025 by dialing 1-800-770-2030 and referencing Conference ID number 7361828.

For more financial information about the Company please visit the website at www.myprovident.com and click on the “Investor Relations” section.

Safe-Harbor Statement

This press release contains statements that the Company believes are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Company’s financial condition, liquidity, results of operations, plans, objectives, future performance or business. You should not place undue reliance on these statements as they are subject to various risks and uncertainties. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. Moreover, you should treat these statements as speaking only as of the date they are made and based only on information then actually known to the Company.

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors which could cause actual results to differ materially from the results anticipated or implied by our forward-looking statements include, but are not limited to: adverse economic conditions in our local market areas or other markets where we have lending relationships; effects of employment levels, labor shortages, inflation, a recession or slowed economic growth; changes in the interest rate environment, including the increases and decreases in the Board of Governors of the Federal Reserve Board (the “Federal Reserve”) benchmark rate and the duration of such levels, which could adversely affect our revenues and expenses, the value of assets and obligations, and the availability and cost of capital and liquidity; the impact of inflation and the Federal Reserve monetary policy; the effects of any Federal government shutdown; credit risks of lending activities, including loan delinquencies, write-offs, changes in our allowance for credit losses (“ACL”), and provision for credit losses; increased competitive pressures, including repricing and competitors’ pricing initiatives, and their impact on our market position, loan, and deposit products; quality and composition of our securities portfolio and the impact of adverse changes in the securities markets; fluctuations in deposits; secondary market conditions for loans and our ability to sell loans in the secondary market; liquidity issues, including our ability to borrow funds or raise additional capital, if necessary; expectations regarding key growth initiatives and strategic priorities; the impact of bank failures or adverse developments at other banks and related negative press about the banking industry in general on investor and depositor sentiment; results of examinations of us by regulatory authorities, which may the possibility that any such regulatory authority may, among other things, institute a formal or informal enforcement action against us or our bank subsidiary which could require us to increase our ACL, write-down assets, change our regulatory capital position or affect our ability to borrow funds or maintain or increase deposits or impose additional requirements or restrictions on us, any of which could adversely affect our liquidity and earnings; legislative and regulatory changes, including changes in banking, securities and tax law, in regulatory policies and principles, or the interpretation of regulatory capital or other rules; use of estimates in determining the fair value of assets, which may prove incorrect; disruptions or security breaches, or other adverse events, failures or interruptions in or attacks on our information technology systems or on our third-party vendors; the potential for new or increased tariffs, trade restrictions or geopolitical tensions that could affect economic activity or specific industry sectors; staffing fluctuations in response to product demand or corporate implementation strategies; our ability to pay dividends on our common stock; environmental, social and governance goals; effects of climate change, severe weather events, natural disasters, pandemics, epidemics and other public health crises, acts of war or terrorism, civil unrest and other external events; and other factors described in the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed with and furnished to the Securities and Exchange Commission (“SEC”), which are available on our website at www.myprovident.com and on the SEC’s website at www.sec.gov.

We do not undertake and specifically disclaim any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements whether as a result of new information, future events or otherwise. These risks could cause our actual results for fiscal 2025 and beyond to differ materially from those expressed in any forward-looking statements by, or on behalf of us and could negatively affect our operating and stock price performance.


Contacts:	Donavon P. Ternes	Haryanto L. Sunarto
	President and	Interim Chief Financial Officer
	Chief Executive Officer	(951) 686-6060

PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Financial Condition (Unaudited –In Thousands, Except Share and Per Share Information)

	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
Assets
Cash and cash equivalents	$	50,915		$	45,539		$	48,193		$	51,376		$	51,731
Investment securities – held to maturity, at cost with no allowance for credit losses		113,617			118,888			124,268			130,051			135,971
Investment securities – available for sale, at fair value		1,681			1,750			1,809			1,849			1,935
Loans held for investment, net of allowance for credit losses of $6,577, $6,956, $6,329, $7,065 and $7,108, respectively; includes $1,032, $1,016, $1,082, $1,047 and $1,054 of loans held at fair value, respectively		1,058,980			1,053,603			1,048,633			1,052,979			1,065,761
Accrued interest receivable		4,263			4,167			4,287			4,287			4,249
FHLB – San Francisco stock and other equity investments, includes $721, $650, $565, $540 and $0 of other equity investments at fair value, respectively		10,289			10,218			10,133			10,108			9,505
Premises and equipment, net		9,388			9,474			9,615			9,313			9,637
Prepaid expenses and other assets		11,047			11,327			10,442			12,237			11,258
Total assets	$	1,260,180		$	1,254,966		$	1,257,380		$	1,272,200		$	1,290,047

Liabilities and Stockholders’ Equity
Liabilities:
Noninterest-bearing deposits	$	89,103		$	85,399		$	86,458		$	95,627		$	91,708
Interest-bearing deposits		812,216			782,116			777,406			792,721			816,414
Total deposits		901,319			867,515			863,864			888,348			908,122

Borrowings		215,580			245,500			249,500			238,500			235,000
Accounts payable, accrued interest and other liabilities		14,406			13,321			14,410			15,411			17,419
Total liabilities		1,131,305			1,126,336			1,127,774			1,142,259			1,160,541

Stockholders’ equity:
Preferred stock, $.01 par value (2,000,000 shares authorized; none issued and outstanding)		—			—			—			—			—
Common stock, $.01 par value; (40,000,000 shares authorized; 18,229,615, 18,229,615, 18,229,615, 18,229,615 and 18,229,615 shares issued respectively; 6,653,822, 6,705,691, 6,769,247, 6,847,821 and 6,896,297 shares outstanding, respectively)		183			183			183			183			183
Additional paid-in capital		99,096			98,747			98,711			98,532			99,591
Retained earnings		211,701			210,779			210,853			209,914			208,923
Treasury stock at cost (11,573,793, 11,523,924, 11,460,368, 11,381,794, and 11,333,318 shares, respectively)		(182,121	)		(181,094	)		(180,155	)		(178,685	)		(179,183	)
Accumulated other comprehensive income (loss), net of tax		16			15			14			(3	)		(8	)
Total stockholders’ equity		128,875			128,630			129,606			129,941			129,506
Total liabilities and stockholders’ equity	$	1,260,180		$	1,254,966		$	1,257,380		$	1,272,200		$	1,290,047

PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Operations (Unaudited – In Thousands, Except Per Share Information)

	For the Quarter Ended					Nine Months Ended
	March 31,					March 31,
	2025			2024		2025			2024
Interest income:
Loans receivable, net	$	13,368		$	12,683	$	39,441		$	37,368
Investment securities		459			517		1,412			1,565
FHLB – San Francisco stock and other equity investments		213			210		636			586
Interest-earning deposits		389			397		1,036			1,295
Total interest income		14,429			13,807		42,525			40,814

Interest expense:
Checking and money market deposits		46			90		150			219
Savings deposits		127			97		356			208
Time deposits		2,573			2,488		7,738			6,406
Borrowings		2,471			2,573		7,694			7,509
Total interest expense		5,217			5,248		15,938			14,342

Net interest income		9,212			8,559		26,587			26,472
(Recovery of) provision for credit losses		(391	)		124		(502	)		(51	)
Net interest income, after (recovery of) provision for credit losses		9,603			8,435		27,089			26,523

Non-interest income:
Loan servicing and other fees		135			92		299			195
Deposit account fees		276			289		856			876
Card and processing fees		291			317		911			1,003
Other		205			150		585			400
Total non-interest income		907			848		2,651			2,474

Non-interest expense:
Salaries and employee benefits		4,776			4,540		14,235			13,223
Premises and occupancy		880			835		2,748			2,641
Equipment		417			329		1,139			962
Professional		386			321		1,224			1,203
Sales and marketing		181			167		541			516
Deposit insurance premiums and regulatory assessments		195			190		568			596
Other		1,021			786		2,718			2,227
Total non-interest expense		7,856			7,168		23,173			21,368
Income before income taxes		2,654			2,115		6,567			7,629
Provision for income taxes		797			620		1,938			2,231
Net income	$	1,857		$	1,495	$	4,629		$	5,398

Basic earnings per share	$	0.28		$	0.22	$	0.69		$	0.77
Diluted earnings per share	$	0.28		$	0.22	$	0.68		$	0.77
Cash dividends per share	$	0.14		$	0.14	$	0.42		$	0.42

PROVIDENT FINANCIAL HOLDINGS, INC. Condensed Consolidated Statements of Operations – Sequential Quarters (Unaudited – In Thousands, Except Per Share Information)

	For the Quarter Ended
	March 31,			December 31,		September 30,			June 30,			March 31,
	2025			2024		2024			2024			2024
Interest income:
Loans receivable, net	$	13,368		$	13,050	$	13,023		$	12,826		$	12,683
Investment securities		459			471		482			504			517
FHLB – San Francisco stock and other equity investments		213			213		210			207			210
Interest-earning deposits		389			287		360			379			397
Total interest income		14,429			14,021		14,075			13,916			13,807

Interest expense:
Checking and money market deposits		46			51		53			71			90
Savings deposits		127			117		112			105			97
Time deposits		2,573			2,506		2,659			2,657			2,488
Borrowings		2,471			2,588		2,635			2,632			2,573
Total interest expense		5,217			5,262		5,459			5,465			5,248

Net interest income		9,212			8,759		8,616			8,451			8,559
(Recovery of) provision for credit losses		(391	)		586		(697	)		(12	)		124
Net interest income, after (recovery of) provision for credit losses		9,603			8,173		9,313			8,463			8,435

Non-interest income:
Loan servicing and other fees		135			60		104			142			92
Deposit account fees		276			282		298			278			289
Card and processing fees		291			300		320			381			317
Other		205			203		177			666			150
Total non-interest income		907			845		899			1,467			848

Non-interest expense:
Salaries and employee benefits		4,776			4,826		4,633			4,419			4,540
Premises and occupancy		880			917		951			945			835
Equipment		417			379		343			347			329
Professional		386			412		426			327			321
Sales and marketing		181			187		173			193			167
Deposit insurance premiums and regulatory assessments		195			190		183			184			190
Other		1,021			883		814			757			786
Total non-interest expense		7,856			7,794		7,523			7,172			7,168
Income before income taxes		2,654			1,224		2,689			2,758			2,115
Provision for income taxes		797			352		789			805			620
Net income	$	1,857		$	872	$	1,900		$	1,953		$	1,495

Basic earnings per share	$	0.28		$	0.13	$	0.28		$	0.28		$	0.22
Diluted earnings per share	$	0.28		$	0.13	$	0.28		$	0.28		$	0.22
Cash dividends per share	$	0.14		$	0.14	$	0.14		$	0.14		$	0.14

PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited – Dollars in Thousands, Except Share and Per Share Information)

	As of and For the
	Quarter Ended						Nine Months Ended
	March 31,						March 31,
	2025			2024			2025			2024
SELECTED FINANCIAL RATIOS:
Return on average assets		0.59	%		0.47	%		0.50	%		0.56	%
Return on average stockholders’ equity		5.71	%		4.57	%		4.72	%		5.51	%
Stockholders’ equity to total assets		10.23	%		10.04	%		10.23	%		10.04	%
Net interest spread		2.82	%		2.55	%		2.74	%		2.64	%
Net interest margin		3.02	%		2.74	%		2.92	%		2.80	%
Efficiency ratio		77.64	%		76.20	%		79.26	%		73.82	%
Average interest-earning assets to average interest-bearing liabilities		110.25	%		110.28	%		110.38	%		110.24	%

SELECTED FINANCIAL DATA:
Basic earnings per share	$	0.28		$	0.22		$	0.69		$	0.77
Diluted earnings per share	$	0.28		$	0.22		$	0.68		$	0.77
Book value per share	$	19.37		$	18.78		$	19.37		$	18.78
Shares used for basic EPS computation		6,679,808			6,919,397			6,753,060			6,968,353
Shares used for diluted EPS computation		6,732,794			6,935,053			6,796,743			6,981,223
Total shares issued and outstanding		6,653,822			6,896,297			6,653,822			6,896,297

LOANS ORIGINATED FOR INVESTMENT:
Mortgage loans:
Single-family	$	22,163		$	8,946		$	74,195		$	30,058
Multi-family		4,087			5,865			15,772			17,586
Commercial real estate		1,135			2,172			2,760			8,047
Commercial business loans		500			1,250			550			1,250
Total loans originated for investment	$	27,885		$	18,233		$	93,277		$	56,941

PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited – Dollars in Thousands, Except Share and Per Share Information)

	As of and For the
	Quarter			Quarter			Quarter			Quarter			Quarter
	Ended			Ended			Ended			Ended			Ended
	03/31/25			12/31/24			09/30/24			06/30/24			03/31/24
SELECTED FINANCIAL RATIOS:
Return on average assets		0.59	%		0.28	%		0.61	%		0.62	%		0.47	%
Return on average stockholders’ equity		5.71	%		2.66	%		5.78	%		5.96	%		4.57	%
Stockholders’ equity to total assets		10.23	%		10.25	%		10.31	%		10.21	%		10.04	%
Net interest spread		2.82	%		2.74	%		2.66	%		2.54	%		2.55	%
Net interest margin		3.02	%		2.91	%		2.84	%		2.74	%		2.74	%
Efficiency ratio		77.64	%		81.15	%		79.06	%		72.31	%		76.20	%
Average interest-earning assets to average interest-bearing liabilities		110.25	%		110.52	%		110.34	%		110.40	%		110.28	%

SELECTED FINANCIAL DATA:
Basic earnings per share	$	0.28		$	0.13		$	0.28		$	0.28		$	0.22
Diluted earnings per share	$	0.28		$	0.13		$	0.28		$	0.28		$	0.22
Book value per share	$	19.37		$	19.18		$	19.15		$	18.98		$	18.78
Average shares used for basic EPS		6,679,808			6,744,653			6,833,125			6,867,521			6,919,397
Average shares used for diluted EPS		6,732,794			6,792,759			6,863,083			6,893,813			6,935,053
Total shares issued and outstanding		6,653,822			6,705,691			6,769,247			6,847,821			6,896,297

LOANS ORIGINATED FOR INVESTMENT:
Mortgage loans:
Single-family	$	22,163		$	29,583		$	22,449		$	10,862		$	8,946
Multi-family		4,087			6,495			5,190			4,526			5,865
Commercial real estate		1,135			365			1,260			1,710			2,172
Construction		—			—			—			1,480			—
Commercial business loans		500			—			50			—			1,250
Total loans originated for investment	$	27,885		$	36,443		$	28,949		$	18,578		$	18,233

PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited – Dollars in Thousands)

	As of			As of			As of			As of			As of
	03/31/25			12/31/24			09/30/24			06/30/24			03/31/24
ASSET QUALITY RATIOS AND DELINQUENT LOANS:
Recourse reserve for loans sold	$	23		$	23		$	23		$	26		$	31
Allowance for credit losses on loans held for investment	$	6,577		$	6,956		$	6,329		$	7,065		$	7,108
Non-performing loans to loans held for investment, net		0.13	%		0.24	%		0.20	%		0.25	%		0.21	%
Non-performing assets to total assets		0.11	%		0.20	%		0.17	%		0.20	%		0.17	%
Allowance for credit losses on loans to gross loans held for investment		0.62	%		0.66	%		0.61	%		0.67	%		0.67	%
Net loan charge-offs (recoveries) to average loans receivable (annualized)		—	%		—	%		—	%		—	%		—	%
Non-performing loans	$	1,395		$	2,530		$	2,106		$	2,596		$	2,246
Loans 30 to 89 days delinquent	$	199		$	3		$	2		$	1		$	388


	Quarter			Quarter		Quarter			Quarter			Quarter
	Ended			Ended		Ended			Ended			Ended
	03/31/25			12/31/24		09/30/24			06/30/24			03/31/24
(Recovery) recourse provision for loans sold	$	—		$	—	$	(3	)	$	(5	)	$	—
(Recovery of) provision for credit losses	$	(391	)	$	586	$	(697	)	$	(12	)	$	124
Net loan charge-offs (recoveries)	$	—		$	—	$	—		$	—		$	—


	As of		As of		As of		As of		As of
	03/31/2025		12/31/2024		09/30/2024		06/30/2024		03/31/2024
REGULATORY CAPITAL RATIOS (BANK):
Tier 1 leverage ratio	9.85	%	9.81	%	9.63	%	10.02	%	9.70	%
Common equity tier 1 capital ratio	19.01	%	18.60	%	18.36	%	19.29	%	18.77	%
Tier 1 risk-based capital ratio	19.01	%	18.60	%	18.36	%	19.29	%	18.77	%
Total risk-based capital ratio	20.03	%	19.67	%	19.35	%	20.38	%	19.85	%


	As of March 31,
	2025				2024
	Balance		Rate⁽¹⁾		Balance		Rate⁽¹⁾
INVESTMENT SECURITIES:
Held to maturity (at cost):
U.S. SBA securities	$	328	4.85	%	$	458	5.85	%
U.S. government sponsored enterprise MBS		109,718	1.60			131,711	1.54
U.S. government sponsored enterprise CMO		3,571	2.13			3,802	2.16
Total investment securities held to maturity	$	113,617	1.62	%	$	135,971	1.57	%

Available for sale (at fair value):
U.S. government agency MBS	$	1,119	4.72	%	$	1,274	3.72	%
U.S. government sponsored enterprise MBS		482	6.91			570	6.05
Private issue CMO		80	6.10			91	4.96
Total investment securities available for sale	$	1,681	5.41	%	$	1,935	4.46	%
Total investment securities	$	115,298	1.68	%	$	137,906	1.61	%

⁽¹⁾Weighted-average yield earned on all instruments included in the balance of the respective line item.

PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited – Dollars in Thousands)

	As of March 31,
	2025					2024
	Balance			Rate⁽¹⁾		Balance			Rate⁽¹⁾
LOANS HELD FOR INVESTMENT:
Mortgage loans:
Single-family (1 to 4 units)	$	545,377		4.66	%	$	517,039		4.39	%
Multi-family (5 or more units)		429,547		5.47			457,401		5.14
Commercial real estate		75,349		6.63			83,136		6.36
Construction		837		11.00			2,745		8.81
Other		89		5.25			99		5.25
Commercial business loans		4,255		9.52			2,835		9.79
Consumer loans		52		17.50			60		18.50
Total loans held for investment		1,055,506		5.15	%		1,063,315		4.89	%

Advance payments of escrows		519					371
Deferred loan costs, net		9,532					9,183
Allowance for credit losses on loans		(6,577	)				(7,108	)
Total loans held for investment, net	$	1,058,980				$	1,065,761
Purchased loans serviced by others included above	$	1,721		5.72	%	$	1,999		5.80	%

⁽¹⁾Weighted-average yield earned on all instruments included in the balance of the respective line item.


	As of March 31,
	2025				2024
	Balance		Rate⁽¹⁾		Balance		Rate⁽¹⁾
DEPOSITS:
Checking accounts – noninterest-bearing	$	89,103	—	%	$	91,708	—	%
Checking accounts – interest-bearing		248,392	0.04			275,920	0.04
Savings accounts		232,308	0.24			247,847	0.17
Money market accounts		21,640	0.16			26,715	0.41
Time deposits		309,876	3.57			265,932	3.89
Total deposits⁽²⁾⁽³⁾	$	901,319	1.30	%	$	908,122	1.21	%

Brokered CDs included in time deposits above	$	129,770	4.34	%	$	130,900	5.19	%

BORROWINGS:
Overnight	$	20,000	4.65	%	$	—	—	%
Three months or less		22,500	4.17			59,500	5.28
Over three to six months		5,000	5.33			33,000	5.34
Over six months to one year		108,000	4.65			70,000	4.51
Over one year to two years		45,000	4.66			42,500	4.62
Over two years to three years		80	4.50			15,000	4.87
Over three years to four years		15,000	4.41			—	—
Over four years to five years		—	—			15,000	4.41
Over five years		—	—			—	—
Total borrowings⁽⁴⁾	$	215,580	4.60	%	$	235,000	4.86	%

⁽¹⁾Weighted-average rate paid on all instruments included in the balance of the respective line item.
⁽²⁾Includes uninsured deposits of approximately $162.2 million (of which, $57.1 million are collateralized) and $136.4 million (of which, $9.2 million are collateralized) at March 31, 2025 and 2024, respectively.
⁽³⁾The average balance of deposit accounts was approximately $37 thousand and $34 thousand at March 31, 2025 and 2024, respectively.
⁽⁴⁾The Bank had approximately $269.8 million and $269.2 million of remaining borrowing capacity at the FHLB – San Francisco, approximately $151.0 million and $172.7 million of borrowing capacity at the FRB of San Francisco and $50.0 million and $50.0 million of borrowing capacity with its correspondent bank at March 31, 2025 and 2024, respectively.

PROVIDENT FINANCIAL HOLDINGS, INC. Financial Highlights (Unaudited – Dollars in Thousands)

	For the Quarter Ended					For the Quarter Ended
	March 31, 2025					March 31, 2024
	Balance		Rate⁽¹⁾			Balance		Rate⁽¹⁾
SELECTED AVERAGE BALANCE SHEETS:

Loans receivable, net	$	1,056,441		5.06	%	$	1,071,004	4.74	%
Investment securities		118,431		1.55			141,390	1.46
FHLB – San Francisco stock and other equity investments		10,268		8.30			9,505	8.84
Interest-earning deposits		35,182		4.42			29,099	5.40
Total interest-earning assets	$	1,220,322		4.73	%	$	1,250,998	4.41	%
Total assets	$	1,251,168				$	1,281,975

Deposits⁽²⁾	$	885,032		1.26	%	$	910,781	1.18	%
Borrowings		221,787		4.52			223,632	4.63
Total interest-bearing liabilities⁽²⁾	$	1,106,819		1.91	%	$	1,134,413	1.86	%
Total stockholders’ equity	$	130,081				$	130,906

⁽¹⁾Weighted-average yield earned or rate paid on all instruments included in the balance of the respective line item.
⁽²⁾Includes the average balance of noninterest-bearing checking accounts of $88.4 million and $91.0 million during the quarters ended March 31, 2025 and 2024, respectively. The average balance of uninsured deposits of $131.2 million and $139.0 million in the quarters ended March 31, 2025 and 2024, respectively.


	Nine Months Ended					Nine Months Ended
	March 31, 2025					March 31, 2024
	Balance		Rate⁽¹⁾			Balance		Rate⁽¹⁾
SELECTED AVERAGE BALANCE SHEETS:

Loans receivable, net	$	1,050,748		5.00	%	$	1,072,741	4.64	%
Investment securities		123,983		1.52			147,445	1.42
FHLB – San Francisco stock and other equity investments		10,186		8.33			9,505	8.22
Interest-earning deposits		28,404		4.79			31,538	5.38
Total interest-earning assets	$	1,213,321		4.67	%	$	1,261,229	4.31	%
Total assets	$	1,243,635				$	1,291,902

Deposits⁽²⁾	$	876,176		1.25	%	$	921,905	0.99	%
Borrowings		223,087		4.59			222,206	4.50
Total interest-bearing liabilities⁽²⁾	$	1,099,263		1.93	%	$	1,144,111	1.67	%
Total stockholders’ equity	$	130,911				$	130,686

⁽¹⁾Weighted-average yield earned or rate paid on all instruments included in the balance of the respective line item.
⁽²⁾Includes the average balance of noninterest-bearing checking accounts of $88.4 million and $98.9 million during the nine months ended March 31, 2025 and 2024, respectively. The average balance of uninsured deposits of $127.5 million and $139.1 million in the nine months ended March 31, 2025 and 2024, respectively.

ASSET QUALITY:


	As of		As of		As of		As of		As of
	03/31/25		12/31/24		09/30/24		06/30/24		03/31/24
Loans on non-accrual status
Mortgage loans:
Single-family	$	925	$	2,530	$	2,106	$	2,596	$	2,246
Multi-family		470		—		—		—		—
Total		1,395		2,530		2,106		2,596		2,246

Accruing loans past due 90 days or more:		—		—		—		—		—
Total		—		—		—		—		—

Total non-performing loans ⁽¹⁾		1,395		2,530		2,106		2,596		2,246

Real estate owned, net		—		—		—		—		—
Total non-performing assets	$	1,395	$	2,530	$	2,106	$	2,596	$	2,246

⁽¹⁾The non-performing loan balances are net of individually evaluated or collectively evaluated allowances, specifically attached to the individual loans.

The MIL Network –

April 28, 2025

MIL-OSI New Zealand: New rules for ground-based space infrastructure

Source: New Zealand Government

New legislation to deter foreign interference and protect New Zealand’s national interests and national security will be in place for operators of ground-based space infrastructure (GBSI) by July, Space Minister Judith Collins said today.

“As I announced last year, we’re taking action to support New Zealand’s interest in the safe, secure and responsible use of space and stop any attempts by foreign entities that do not share our values or interests,” Ms Collins says.

“A new regulatory regime will start in July to deter foreign interference in New Zealand’s infrastructure that carry out tracking and control of spacecraft, space surveillance and the transfer of data to and from spacecraft.

“During the past five years there have been several deceptive efforts by foreign actors to establish and/or use GBSI in New Zealand to harm our national security.

“They have deliberately disguised their affiliations to foreign militaries and mis-represented their intentions.

“To date these risks have been managed through non-regulatory measures, including relying on the goodwill of GBSI operators. These measures are no longer enough.

“The introduction of this new regime will serve as a deterrent. It sends a very clear message that we take our national security seriously, and we will act if we suspect that it is under threat.”

The regime will be rolled out in two stages, with some measures to stop malicious activity available as soon as the legislation comes into effect in July.

Following this, regulations will be put in place setting out detailed requirements for GBSI registration, including for protective security and due diligence systems which in-scope GBSI operators will need to implement. Once the new regulations are in place later this year, there will be a transition period until 1 March 2026 for operators to implement the necessary systems for successful registration.

“The regime will apply to all in-scope operators in New Zealand, including those operating the infrastructure established prior to the regime coming into effect,” Ms Collins says.

“It will be an offence to ignore the requirements of the regulatory regime, and could lead to the seizure of equipment, a $50,000 fine and/or up to one year in jail for an individual, and a fine up to $250,000 for an entity.”

The regulatory regime targets the following GBSI activities and will apply to existing operators in New Zealand:

Telemetry, tracking and control (including capability that could degrade or disrupt satellite operations) of spacecraft (including, for example, geodetic infrastructure);
space surveillance and identification of spacecraft; and
satellite data reception.

Widespread consumer products such as satellite telephones, satellite television or internet receiving dishes will be excluded.

MBIE will act as the regulator of the regime, with the Minister for Space as the decision maker.

The regulatory regime will be included in an Outer Space High Altitude Activities Amendment Bill.

MIL OSI New Zealand News –

April 28, 2025

Category: Intelligence

Targeting dissidents

Directly controlled by a dictator

Opaque operations

Surveillance capabilities

Unlawful policing

Potentially expanded scope

Role of Asset Management Industry to Manage Uncertainty

IMAS’ Contributions to Industry

Keeping Americans ‘safe’

TSA as a case study

JFK empowered federal workers

Reagan and the air traffic controllers union

Long-term goal