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MIL-OSI: First Western Reports Second Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Second Quarter 2025 Summary

Total loans increased $115 million, or 4.7%, from $2.43 billion as of Q1 2025 to $2.54 billion as of Q2 2025
Net interest margin increased 6 basis points from 2.61% in Q1 2025 to 2.67% in Q2 2025
Net interest income increased $0.4 million from $17.5 million in Q1 2025 to $17.9 million in Q2 2025
Non-interest expense decreased $0.3 million from $19.4 million in Q1 2025 to $19.1 million in Q2 2025
Net income available to common shareholders of $2.5 million, or $0.26 per diluted share, in Q2 2025

DENVER, July 24, 2025 (GLOBE NEWSWIRE) — First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the second quarter ended June 30, 2025.

Net income available to common shareholders was $2.5 million, or $0.26 per diluted share, for the second quarter of 2025. This compares to net income of $4.2 million, or $0.43 per diluted share, for the first quarter of 2025, and net income of $1.1 million, or $0.11 per diluted share, for the second quarter of 2024.

Scott C. Wylie, CEO of First Western, commented, “We executed well in the second quarter and saw positive trends in many areas including loan and deposit growth, an expansion in our net interest margin, well managed expenses, and stable asset quality. We were able to redeploy the cash from the sale of our two largest OREO properties into loan production and securities purchases, which positively impacted our net interest margin. While maintaining our disciplined underwriting and pricing criteria, we had a very strong quarter of loan production, which was well diversified across our markets and loan portfolios. Our strong loan production reflects the healthy economic conditions we continue to see across our markets, as well as the contribution of banking talent we have added over the past few years.

“Our loan and deposit pipelines remain healthy and we expect to see solid balance sheet growth over the second half of the year, along with continued expansion in our net interest margin while we continue to maintain tight expense control. We believe this will continue to result in solid financial performance for our shareholders as we move through the year,” said Mr. Wylie.

	For the Three Months Ended
	June 30,			March 31,			June 30,
*(Dollars in thousands, except per share data)*		2025			2025			2024
Earnings Summary
Net interest income	$	17,884		$	17,453		$	15,778
Provision for credit losses		1,773			80			2,334
Total non-interest income		6,305			7,345			6,972
Total non-interest expense		19,099			19,361			19,001
Income before income taxes		3,317			5,357			1,415
Income tax expense		814			1,172			339
Net income available to common shareholders		2,503			4,185			1,076
Basic earnings per common share		0.26			0.43			0.11
Diluted earnings per common share		0.26			0.43			0.11

Return on average assets (annualized)		0.36	%		0.59	%		0.15	%
Return on average shareholders’ equity (annualized)		3.90			6.63			1.73
Return on tangible common equity (annualized)⁽¹⁾		4.40			7.44			2.00
Net interest margin		2.67			2.61			2.35
Efficiency ratio⁽¹⁾		78.83			79.16			82.25

____________________

⁽¹⁾ Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

Operating Results for the Second Quarter 2025

Revenue

Total income before non-interest expense was $22.4 million for the second quarter of 2025, a decrease of 9.3% from $24.7 million for the first quarter of 2025. Gross revenue⁽¹⁾ was $24.2 million for the second quarter of 2025, a decrease of 1.6% from $24.6 million for the first quarter of 2025. Relative to the first quarter of 2025, the decrease in total income before non-interest expense was primarily driven by an increase in the Provision for credit losses and decreases in Net gain on loans held for sale and Net gain on other real estate owned, partially offset by an increase in Net interest income. Relative to the second quarter of 2024, total income before non-interest expense increased 9.8% from $20.4 million and Gross revenue increased 4.8% from $23.1 million. Relative to the second quarter of 2024, the increase in total income before non-interest expense was primarily driven by an increase in Net interest income and decrease in the Provision for credit losses, partially offset by a decrease in Net gain on mortgage loans.

⁽¹⁾ Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

Net Interest Margin

Net interest margin for the second quarter of 2025 increased 6 basis points to 2.67% from 2.61% reported in the first quarter of 2025, primarily due to a decrease in cost of deposits and increase in interest-earning assets yield. The decrease in cost of deposits was primarily due to lower rates on time deposits and the increase in interest-earning assets yield was primarily due to an improved mix in average interest-earning asset balances.

The yield on interest-earning assets increased 4 basis points to 5.61% from 5.57% reported in the first quarter of 2025 and the cost of interest-bearing liabilities decreased 2 basis points to 3.63% from 3.65% reported in the first quarter of 2025.

Relative to the second quarter of 2024, net interest margin increased 32 basis points from 2.35%, primarily due to a 42 basis point decrease in total cost of funds as a result of the lower interest rate environment.

Net Interest Income

Net interest income for the second quarter of 2025 was $17.9 million, an increase of 2.3% from $17.5 million for the first quarter of 2025. The increase quarter over quarter was primarily driven by a 6 basis point increase in net interest margin, offset partially by a decline in average interest-earning assets. Relative to the second quarter of 2024, net interest income increased 13.3% from $15.8 million. The increase compared to the second quarter of 2024 was primarily driven by a 32 basis point increase in net interest margin, offset partially by a decline in average interest-earnings assets.

Non-interest Income

Non-interest income for the second quarter of 2025 was $6.3 million, a decrease of 13.7% from $7.3 million in the first quarter of 2025. The decrease was driven primarily by decreases in Net gain on other real estate owned, Net gain on loans held for sale, and Risk management and insurance fees, partially offset by an increase in Net gain on mortgage loans due to an increase in origination volume. The first quarter of 2025 included a Net gain on other real estate of $0.5 million due to the sale of our two largest OREO properties as well as a Net gain on loans held for sale of $0.2 million due to the reversal of a previous quarter’s write-down on a non-performing loan.

Relative to the second quarter of 2024, non-interest income decreased $0.7 million, driven primarily by a decrease in Net gain on mortgage loans due to a decrease in origination volume.

Non-interest Expense

Non-interest expense for the second quarter of 2025 was $19.1 million, a decrease of 1.5% from $19.4 million in the first quarter of 2025. The decrease was primarily driven by a decrease in Salaries and employee benefits due to the seasonality of payroll taxes, partially offset by an increase in Professional services.

Relative to the second quarter of 2024, non-interest expense increased 0.5% from $19.0 million, driven primarily by an increase in Occupancy and equipment expenses, partially offset by a decrease in Salaries and employee benefits.

The Company’s efficiency ratio⁽¹⁾ was 78.8% in the second quarter of 2025, compared with 79.2% in the first quarter of 2025 and 82.3% in the second quarter of 2024.

⁽¹⁾ Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

Income Taxes

The Company recorded Income tax expense of $0.8 million for the second quarter of 2025, compared to $1.2 million for the first quarter of 2025, and $0.3 million for the second quarter of 2024.

Loans

Total loans held for investment were $2.54 billion as of June 30, 2025, an increase of $115 million or 4.7% compared to March 31, 2025. Changes in the quarter included net growth in the Cash, securities, and other and 1-4 family residential portfolios, partially offset by a net decrease in the Construction and development portfolio. Relative to the second quarter of 2024, total loans held for investment increased from $2.46 billion as of June 30, 2024, primarily driven by net growth in the 1-4 family residential and Non-owner occupied commercial real estate portfolios, partially offset by net decreases in the Construction and development and Commercial and industrial portfolios.

Deposits

Total deposits were $2.53 billion as of June 30, 2025, an increase of 0.4% from $2.52 billion as of March 31, 2025. Relative to the second quarter of 2024, total deposits increased from $2.41 billion as of June 30, 2024, driven primarily by an increase in Interest-bearing deposits.

Borrowings

Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined $163.4 million as of June 30, 2025, an increase of $111.8 million from $51.6 million as of March 31, 2025. The change when compared to March 31, 2025 was primarily driven by net draws on the Company’s FHLB line of credit as a result of interest-earning asset growth during the quarter. Relative to the second quarter of 2024, borrowings decreased $28.1 million from $191.5 million as of June 30, 2024. The decrease in borrowings from June 30, 2024 was primarily driven by Bank Term Funding Program (“BTFP”) payoffs and net pay downs on the Company’s FHLB line of credit as a result of deposit growth.

Subordinated notes were $44.7 million as of June 30, 2025, compared to $44.6 million as of March 31, 2025. Subordinated notes decreased $7.8 million from $52.5 million as of June 30, 2024. Relative to the second quarter of 2024, the decrease was primarily due to the redemption of $8.0 million of subordinated notes that became eligible to call in the first quarter of 2025.

Assets Under Management

Assets Under Management (“AUM”) was $7.50 billion as of June 30, 2025, an increase of $320 million, or 4.5%, from $7.18 billion as of March 31, 2025. The increase in AUM during the quarter was primarily attributable to improving market conditions. Compared to June 30, 2024, total AUM increased 6.9% from $7.01 billion.

Credit Quality

Non-performing assets totaled $18.8 million, or 0.62% of Total assets, as of June 30, 2025, compared to $17.1 million, or 0.59% of total assets, as of March 31, 2025. The increase in non-performing assets during the quarter was due to additions to non-performing loans. As of June 30, 2024, non-performing assets totaled $49.3 million, or 1.68% of total assets. Relative to the second quarter of 2024, the decrease in non-performing assets was primarily driven by the sale of two OREO properties, partially offset by additions to non-performing loans. OREO totaled $4.4 million as of June 30, 2025 and March 31, 2025, a decrease of $7.0 million from $11.4 million as of June 30, 2024.

Non-performing loans totaled $14.4 million as of June 30, 2025, an increase of $1.6 million from $12.8 million as of March 31, 2025. The increase was due to the addition of one credit relationship that is in active workout. This relationship is secured by a residential real estate asset, business assets, and a personal guarantee. As of June 30, 2024, non-performing loans totaled $37.9 million. The decrease when compared to June 30, 2024 was driven by the migration of one loan relationship out of non-performing loans and into OREO, partially offset by additions to non-performing loans.

During the second quarter of 2025, the Company recorded provision expense of $1.8 million, compared to $0.1 million in the first quarter of 2025 and $2.3 million in the second quarter of 2024. The increase in provision expense recorded in the second quarter of 2025 compared to the first quarter of 2025 was primarily driven by loan growth and charge-offs.

Capital

As of June 30, 2025, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of June 30, 2025, the Bank was classified as “well capitalized,” as summarized in the following table:

	June 30,
	2025
Consolidated Capital
Tier 1 capital to risk-weighted assets	9.96	%
Common Equity Tier 1 (“CET1”) to risk-weighted assets	9.96
Total capital to risk-weighted assets	12.67
Tier 1 capital to average assets	8.31

Bank Capital
Tier 1 capital to risk-weighted assets	11.36	%
CET1 to risk-weighted assets	11.36
Total capital to risk-weighted assets	12.13
Tier 1 capital to average assets	9.49

Book value per common share increased 0.8% from $26.44 as of March 31, 2025 to $26.64 as of June 30, 2025. Book value per common share increased 4.3% from $25.55 as of June 30, 2024.

Tangible book value per common share⁽¹⁾ increased 0.9% from $23.18 as of March 31, 2025, to $23.39 as of June 30, 2025. Tangible book value per common share increased 5.0% from $22.27 as of June 30, 2024.

During the three months ended June 30, 2025, the Company repurchased 26,287 shares for $0.5 million.

⁽¹⁾ Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

Conference Call, Webcast and Slide Presentation

The Company will host a conference call and webcast at 10:00 a.m. MT/ 12:00 p.m. ET on Friday, July 25, 2025. Telephone access: https://register-conf.media-server.com/register/BI4e9784b7b6ee4a528ae8f3affe52d2ee.

A slide presentation relating to the second quarter 2025 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at https://myfw.gcs-web.com.

About First Western

First Western is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana. First Western and its subsidiaries provide a fully integrated suite of wealth management services on a private trust bank platform, which includes a comprehensive selection of deposit, loan, trust, wealth planning and investment management products and services. First Western’s common stock is traded on the Nasdaq Global Select Market under the symbol “MYFW.” For more information, please visit www.myfw.com.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” and “Gross Revenue”. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliation of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.

Forward-Looking Statements

Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of changes in interest rates could reduce our net interest margins and net interest income; increased credit risk, including as a result of deterioration in economic conditions, could require us to increase our allowance for credit losses and could have a material adverse effect on our results of operations and financial condition; the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 7, 2025 (“Form 10-K”), and other documents we file with the SEC from time to time. We urge readers of this news release to review the “Risk Factors” section our Form 10-K and any updates to those risk factors set forth in our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our other filings with the SEC. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Contacts:
Financial Profiles, Inc.
Tony Rossi
310-622-8221
MYFW@finprofiles.com
IR@myfw.com

First Western Financial, Inc. Condensed Consolidated Statements of Income (unaudited)

	Three Months Ended
	June 30,		March 31,		June 30,
*(dollars in thousands, except per share amounts)*		2025		2025		2024
Interest and dividend income:
Loans, including fees	$	35,085	$	34,068	$	35,275
Loans accounted for under the fair value option		85		111		168
Investment securities		819		681		651
Interest-bearing deposits in other financial institutions		1,356		2,221		1,855
Dividends, restricted stock		155		128		105
Total interest and dividend income		37,500		37,209		38,054

Interest expense:
Deposits		18,208		18,516		20,848
Other borrowed funds		1,408		1,240		1,428
Total interest expense		19,616		19,756		22,276
Net interest income		17,884		17,453		15,778
Less: Provision for credit losses		1,773		80		2,334
Net interest income, after provision for credit losses		16,111		17,373		13,444

Non-interest income:
Trust and investment management fees		4,512		4,677		4,875
Net gain on mortgage loans		1,187		1,067		1,820
Net gain on loans held for sale		—		222		—
Bank fees		293		422		327
Risk management and insurance fees		47		259		109
Income on company-owned life insurance		112		110		106
Net gain (loss) on loans accounted for under the fair value option		26		6		(315	)
Net gain on other real estate owned		—		459		—
Unrealized gain (loss) recognized on equity securities		3		11		(2	)
Other		125		112		52
Total non-interest income		6,305		7,345		6,972
Total income before non-interest expense		22,416		24,718		20,416

Non-interest expense:
Salaries and employee benefits		11,019		11,480		11,097
Occupancy and equipment		2,224		2,210		2,080
Professional services		1,855		1,704		1,826
Technology and information systems		1,030		1,078		1,042
Data processing		1,166		1,122		1,101
Marketing		267		216		243
Amortization of other intangible assets		52		51		56
Other		1,486		1,500		1,556
Total non-interest expense		19,099		19,361		19,001
Income before income taxes		3,317		5,357		1,415
Income tax expense		814		1,172		339
Net income available to common shareholders	$	2,503	$	4,185	$	1,076
Earnings per common share:
Basic	$	0.26	$	0.43	$	0.11
Diluted		0.26		0.43		0.11

First Western Financial, Inc. Condensed Consolidated Balance Sheets (unaudited)

	June 30,			March 31,			June 30,
*(dollars in thousands)*		2025			2025			2024
Assets
Cash and cash equivalents:
Cash and due from banks	$	12,353		$	15,924		$	6,374
Interest-bearing deposits in other financial institutions		219,961			255,658			239,425
Total cash and cash equivalents		232,314			271,582			245,799

Held-to-maturity debt securities (fair value of $93,979, $67,479 and $71,067, respectively), net of allowance for credit losses of $71		99,825			73,775			78,927
Correspondent bank stock, at cost		11,254			5,968			10,804
Mortgage loans held for sale, at fair value		24,151			10,557			26,856
Loans (includes $5,099, $6,112, and $10,190 measured at fair value, respectively)		2,540,096			2,425,367			2,456,063
Allowance for credit losses		(18,994	)		(17,956	)		(27,319	)
Loans, net		2,521,102			2,407,411			2,428,744
Premises and equipment, net		24,488			24,554			24,657
Accrued interest receivable		10,783			10,623			11,339
Accounts receivable		4,435			4,505			5,118
Other receivables		4,915			4,608			4,875
Other real estate owned, net		4,385			4,385			11,421
Goodwill and other intangible assets, net		31,524			31,576			31,741
Deferred tax assets, net		2,809			2,856			6,123
Company-owned life insurance		17,184			17,071			16,741
Other assets		37,628			36,829			34,410
Total assets	$	3,026,797		$	2,906,300		$	2,937,555

Liabilities
Deposits:
Noninterest-bearing	$	361,656		$	409,696		$	396,702
Interest-bearing		2,167,473			2,105,701			2,014,190
Total deposits		2,529,129			2,515,397			2,410,892
Borrowings:
Federal Home Loan Bank and Federal Reserve borrowings		163,416			51,612			191,505
Subordinated notes		44,673			44,621			52,451
Accrued interest payable		1,406			2,371			2,243
Other liabilities		29,326			35,744			33,589
Total liabilities		2,767,950			2,649,745			2,690,680

Shareholders’ Equity
Total shareholders’ equity		258,847			256,555			246,875
Total liabilities and shareholders’ equity	$	3,026,797		$	2,906,300		$	2,937,555

First Western Financial, Inc. Consolidated Financial Summary (unaudited)

	June 30,			March 31,			June 30,
*(dollars in thousands)*		2025			2025			2024
Loan Portfolio
Cash, Securities, and Other	$	161,725		$	101,078		$	143,720
Consumer and Other		15,778			16,688			15,645
Construction and Development		255,870			291,133			309,146
1-4 Family Residential		1,012,662			971,179			904,569
Non-Owner Occupied CRE		655,954			636,820			609,790
Owner Occupied CRE		196,692			182,417			189,353
Commercial and Industrial		239,278			223,197			277,973
Total		2,537,959			2,422,512			2,450,196
Loans accounted for under the fair value option		5,235			6,280			10,494
Total loans held for investment		2,543,194			2,428,792			2,460,690
Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net⁽¹⁾		(3,098	)		(3,425	)		(4,627	)
Loans (includes $5,099, $6,112, and $10,190 measured at fair value, respectively)	$	2,540,096		$	2,425,367		$	2,456,063
Mortgage loans held for sale		24,151			10,557			26,856

Deposit Portfolio
Money market deposit accounts	$	1,632,997		$	1,566,737		$	1,342,753
Time deposits		397,006			379,533			519,597
Interest checking accounts		123,967			144,980			135,759
Savings accounts		13,503			14,451			16,081
Total interest-bearing deposits		2,167,473			2,105,701			2,014,190
Noninterest-bearing accounts		361,656			409,696			396,702
Total deposits	$	2,529,129		$	2,515,397		$	2,410,892

____________________
⁽¹⁾ Includes fair value adjustments on loans held for investment accounted for under the fair value option.

First Western Financial, Inc. Consolidated Financial Summary (unaudited) (continued)

	As of or for the Three Months Ended
	June 30,			March 31,			June 30,
*(dollars in thousands)*		2025			2025			2024
Average Balance Sheets
Assets
Interest-earning assets:
Interest-bearing deposits in other financial institutions	$	121,950		$	198,294		$	141,600
Debt securities		85,739			75,592			75,461
Correspondent bank stock		7,199			5,806			4,801
Gross loans		2,443,758			2,407,482			2,443,937
Mortgage loans held for sale		18,803			13,593			20,254
Loans held at fair value		5,690			6,846			11,314
Total interest-earning assets		2,683,139			2,707,613			2,697,367
Noninterest-earning assets		126,397			145,479			119,247
Total assets	$	2,809,536		$	2,853,092		$	2,816,614

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing deposits	$	2,047,570		$	2,090,505		$	2,001,691
FHLB and Federal Reserve borrowings		75,362			51,885			67,196
Subordinated notes		44,639			52,495			52,414
Total interest-bearing liabilities		2,167,571			2,194,885			2,121,301
Noninterest-bearing liabilities:
Noninterest-bearing deposits		352,391			363,922			412,741
Other liabilities		32,794			41,656			34,051
Total noninterest-bearing liabilities		385,185			405,578			446,792
Total shareholders’ equity		256,780			252,629			248,521
Total liabilities and shareholders’ equity	$	2,809,536		$	2,853,092		$	2,816,614

Yields/Cost of funds (annualized)
Interest-bearing deposits in other financial institutions		4.46	%		4.54	%		5.27	%
Debt securities		3.83			3.65			3.47
Correspondent bank stock		8.64			8.94			8.80
Loans		5.71			5.71			5.75
Loan held at fair value		5.99			6.58			5.97
Mortgage loans held for sale		6.61			5.46			6.83
Total interest-earning assets		5.61			5.57			5.67
Interest-bearing deposits		3.57			3.59			4.19
Total deposits		3.04			3.06			3.47
FHLB and Federal Reserve borrowings		4.14			3.92			4.14
Subordinated notes		5.66			5.70			5.66
Total interest-bearing liabilities		3.63			3.65			4.22
Net interest margin		2.67			2.61			2.35
Net interest rate spread		1.98			1.92			1.45

First Western Financial, Inc. Consolidated Financial Summary (unaudited) (continued)

	As of or for the Three Months Ended
	June 30,			March 31,			June 30,
*(dollars in thousands, except share and per share amounts)*		2025			2025			2024
Asset Quality
Non-performing loans	$	14,394		$	12,758		$	37,909
Non-performing assets		18,779			17,143			49,330
Net charge-offs (recoveries)		657			566			(9	)
Non-performing loans to total loans		0.57	%		0.53	%		1.54	%
Non-performing assets to total assets		0.62			0.59			1.68
Allowance for credit losses to non-performing loans		131.96			140.74			72.06
Allowance for credit losses to total loans		0.75			0.74			1.11
Net charge-offs to average loans		0.03			0.02		*

Assets Under Management	$	7,497,361		$	7,176,624		$	7,011,796

Market Data
Book value per share at period end	$	26.64		$	26.44		$	25.55
Tangible book value per common share⁽¹⁾		23.39			23.18			22.27
Weighted average outstanding shares, basic		9,707,924			9,704,419			9,647,345
Weighted average outstanding shares, diluted		9,809,321			9,798,591			9,750,667
Shares outstanding at period end		9,717,922			9,704,320			9,660,549

Consolidated Capital
Tier 1 capital to risk-weighted assets		9.96	%		10.35	%		9.92	%
CET1 to risk-weighted assets		9.96			10.35			9.92
Total capital to risk-weighted assets		12.67			13.15			13.44
Tier 1 capital to average assets		8.31			8.12			7.91

Bank Capital
Tier 1 capital to risk-weighted assets		11.36	%		11.76	%		11.22	%
CET1 to risk-weighted assets		11.36			11.76			11.22
Total capital to risk-weighted assets		12.13			12.52			12.35
Tier 1 capital to average assets		9.49			9.24			8.95

____________________
⁽¹⁾ Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)

Reconciliations of Non-GAAP Financial Measures

	As of or for the Three Months Ended
	June 30,			March 31,			June 30,
*(dollars in thousands, except share and per share amounts)*		2025			2025			2024
Tangible Common
Total shareholders’ equity	$	258,847		$	256,555		$	246,875
Less: goodwill and other intangibles, net		31,524			31,576			31,741
Tangible common equity	$	227,323		$	224,979		$	215,134

Common shares outstanding, end of period		9,717,922			9,704,320			9,660,549
Tangible common book value per share	$	23.39		$	23.18		$	22.27
Net income available to common shareholders		2,503			4,185			1,076
Return on tangible common equity (annualized)		4.40	%		7.44	%		2.00	%

Efficiency
Non-interest expense	$	19,099		$	19,361		$	19,001
Less: OREO expenses and write-downs		53			(80	)		29
Adjusted non-interest expense	$	19,046		$	19,441		$	18,972

Total income before non-interest expense	$	22,416		$	24,718		$	20,416
Less: unrealized gain (loss) recognized on equity securities		3			11			(2	)
Less: net gain (loss) on loans accounted for under the fair value option		26			6			(315	)
Less: net gain on loans held for sale		—			222			—
Plus: provision for credit losses		1,773			80			2,334
Gross revenue	$	24,160		$	24,559		$	23,067
Efficiency ratio		78.83	%		79.16	%		82.25	%

The MIL Network –

July 25, 2025

MIL-OSI: First Western Reports Second Quarter 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Second Quarter 2025 Summary

Total loans increased $115 million, or 4.7%, from $2.43 billion as of Q1 2025 to $2.54 billion as of Q2 2025
Net interest margin increased 6 basis points from 2.61% in Q1 2025 to 2.67% in Q2 2025
Net interest income increased $0.4 million from $17.5 million in Q1 2025 to $17.9 million in Q2 2025
Non-interest expense decreased $0.3 million from $19.4 million in Q1 2025 to $19.1 million in Q2 2025
Net income available to common shareholders of $2.5 million, or $0.26 per diluted share, in Q2 2025

DENVER, July 24, 2025 (GLOBE NEWSWIRE) — First Western Financial, Inc. (“First Western” or the “Company”) (NASDAQ: MYFW), today reported financial results for the second quarter ended June 30, 2025.

Net income available to common shareholders was $2.5 million, or $0.26 per diluted share, for the second quarter of 2025. This compares to net income of $4.2 million, or $0.43 per diluted share, for the first quarter of 2025, and net income of $1.1 million, or $0.11 per diluted share, for the second quarter of 2024.

Scott C. Wylie, CEO of First Western, commented, “We executed well in the second quarter and saw positive trends in many areas including loan and deposit growth, an expansion in our net interest margin, well managed expenses, and stable asset quality. We were able to redeploy the cash from the sale of our two largest OREO properties into loan production and securities purchases, which positively impacted our net interest margin. While maintaining our disciplined underwriting and pricing criteria, we had a very strong quarter of loan production, which was well diversified across our markets and loan portfolios. Our strong loan production reflects the healthy economic conditions we continue to see across our markets, as well as the contribution of banking talent we have added over the past few years.

“Our loan and deposit pipelines remain healthy and we expect to see solid balance sheet growth over the second half of the year, along with continued expansion in our net interest margin while we continue to maintain tight expense control. We believe this will continue to result in solid financial performance for our shareholders as we move through the year,” said Mr. Wylie.

	For the Three Months Ended
	June 30,			March 31,			June 30,
*(Dollars in thousands, except per share data)*		2025			2025			2024
Earnings Summary
Net interest income	$	17,884		$	17,453		$	15,778
Provision for credit losses		1,773			80			2,334
Total non-interest income		6,305			7,345			6,972
Total non-interest expense		19,099			19,361			19,001
Income before income taxes		3,317			5,357			1,415
Income tax expense		814			1,172			339
Net income available to common shareholders		2,503			4,185			1,076
Basic earnings per common share		0.26			0.43			0.11
Diluted earnings per common share		0.26			0.43			0.11

Return on average assets (annualized)		0.36	%		0.59	%		0.15	%
Return on average shareholders’ equity (annualized)		3.90			6.63			1.73
Return on tangible common equity (annualized)⁽¹⁾		4.40			7.44			2.00
Net interest margin		2.67			2.61			2.35
Efficiency ratio⁽¹⁾		78.83			79.16			82.25

____________________

⁽¹⁾ Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

Operating Results for the Second Quarter 2025

Revenue

Total income before non-interest expense was $22.4 million for the second quarter of 2025, a decrease of 9.3% from $24.7 million for the first quarter of 2025. Gross revenue⁽¹⁾ was $24.2 million for the second quarter of 2025, a decrease of 1.6% from $24.6 million for the first quarter of 2025. Relative to the first quarter of 2025, the decrease in total income before non-interest expense was primarily driven by an increase in the Provision for credit losses and decreases in Net gain on loans held for sale and Net gain on other real estate owned, partially offset by an increase in Net interest income. Relative to the second quarter of 2024, total income before non-interest expense increased 9.8% from $20.4 million and Gross revenue increased 4.8% from $23.1 million. Relative to the second quarter of 2024, the increase in total income before non-interest expense was primarily driven by an increase in Net interest income and decrease in the Provision for credit losses, partially offset by a decrease in Net gain on mortgage loans.

⁽¹⁾ Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

Net Interest Margin

Net interest margin for the second quarter of 2025 increased 6 basis points to 2.67% from 2.61% reported in the first quarter of 2025, primarily due to a decrease in cost of deposits and increase in interest-earning assets yield. The decrease in cost of deposits was primarily due to lower rates on time deposits and the increase in interest-earning assets yield was primarily due to an improved mix in average interest-earning asset balances.

The yield on interest-earning assets increased 4 basis points to 5.61% from 5.57% reported in the first quarter of 2025 and the cost of interest-bearing liabilities decreased 2 basis points to 3.63% from 3.65% reported in the first quarter of 2025.

Relative to the second quarter of 2024, net interest margin increased 32 basis points from 2.35%, primarily due to a 42 basis point decrease in total cost of funds as a result of the lower interest rate environment.

Net Interest Income

Net interest income for the second quarter of 2025 was $17.9 million, an increase of 2.3% from $17.5 million for the first quarter of 2025. The increase quarter over quarter was primarily driven by a 6 basis point increase in net interest margin, offset partially by a decline in average interest-earning assets. Relative to the second quarter of 2024, net interest income increased 13.3% from $15.8 million. The increase compared to the second quarter of 2024 was primarily driven by a 32 basis point increase in net interest margin, offset partially by a decline in average interest-earnings assets.

Non-interest Income

Non-interest income for the second quarter of 2025 was $6.3 million, a decrease of 13.7% from $7.3 million in the first quarter of 2025. The decrease was driven primarily by decreases in Net gain on other real estate owned, Net gain on loans held for sale, and Risk management and insurance fees, partially offset by an increase in Net gain on mortgage loans due to an increase in origination volume. The first quarter of 2025 included a Net gain on other real estate of $0.5 million due to the sale of our two largest OREO properties as well as a Net gain on loans held for sale of $0.2 million due to the reversal of a previous quarter’s write-down on a non-performing loan.

Relative to the second quarter of 2024, non-interest income decreased $0.7 million, driven primarily by a decrease in Net gain on mortgage loans due to a decrease in origination volume.

Non-interest Expense

Non-interest expense for the second quarter of 2025 was $19.1 million, a decrease of 1.5% from $19.4 million in the first quarter of 2025. The decrease was primarily driven by a decrease in Salaries and employee benefits due to the seasonality of payroll taxes, partially offset by an increase in Professional services.

Relative to the second quarter of 2024, non-interest expense increased 0.5% from $19.0 million, driven primarily by an increase in Occupancy and equipment expenses, partially offset by a decrease in Salaries and employee benefits.

The Company’s efficiency ratio⁽¹⁾ was 78.8% in the second quarter of 2025, compared with 79.2% in the first quarter of 2025 and 82.3% in the second quarter of 2024.

⁽¹⁾ Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

Income Taxes

The Company recorded Income tax expense of $0.8 million for the second quarter of 2025, compared to $1.2 million for the first quarter of 2025, and $0.3 million for the second quarter of 2024.

Loans

Total loans held for investment were $2.54 billion as of June 30, 2025, an increase of $115 million or 4.7% compared to March 31, 2025. Changes in the quarter included net growth in the Cash, securities, and other and 1-4 family residential portfolios, partially offset by a net decrease in the Construction and development portfolio. Relative to the second quarter of 2024, total loans held for investment increased from $2.46 billion as of June 30, 2024, primarily driven by net growth in the 1-4 family residential and Non-owner occupied commercial real estate portfolios, partially offset by net decreases in the Construction and development and Commercial and industrial portfolios.

Deposits

Total deposits were $2.53 billion as of June 30, 2025, an increase of 0.4% from $2.52 billion as of March 31, 2025. Relative to the second quarter of 2024, total deposits increased from $2.41 billion as of June 30, 2024, driven primarily by an increase in Interest-bearing deposits.

Borrowings

Federal Home Loan Bank (“FHLB”) and Federal Reserve borrowings were a combined $163.4 million as of June 30, 2025, an increase of $111.8 million from $51.6 million as of March 31, 2025. The change when compared to March 31, 2025 was primarily driven by net draws on the Company’s FHLB line of credit as a result of interest-earning asset growth during the quarter. Relative to the second quarter of 2024, borrowings decreased $28.1 million from $191.5 million as of June 30, 2024. The decrease in borrowings from June 30, 2024 was primarily driven by Bank Term Funding Program (“BTFP”) payoffs and net pay downs on the Company’s FHLB line of credit as a result of deposit growth.

Subordinated notes were $44.7 million as of June 30, 2025, compared to $44.6 million as of March 31, 2025. Subordinated notes decreased $7.8 million from $52.5 million as of June 30, 2024. Relative to the second quarter of 2024, the decrease was primarily due to the redemption of $8.0 million of subordinated notes that became eligible to call in the first quarter of 2025.

Assets Under Management

Assets Under Management (“AUM”) was $7.50 billion as of June 30, 2025, an increase of $320 million, or 4.5%, from $7.18 billion as of March 31, 2025. The increase in AUM during the quarter was primarily attributable to improving market conditions. Compared to June 30, 2024, total AUM increased 6.9% from $7.01 billion.

Credit Quality

Non-performing assets totaled $18.8 million, or 0.62% of Total assets, as of June 30, 2025, compared to $17.1 million, or 0.59% of total assets, as of March 31, 2025. The increase in non-performing assets during the quarter was due to additions to non-performing loans. As of June 30, 2024, non-performing assets totaled $49.3 million, or 1.68% of total assets. Relative to the second quarter of 2024, the decrease in non-performing assets was primarily driven by the sale of two OREO properties, partially offset by additions to non-performing loans. OREO totaled $4.4 million as of June 30, 2025 and March 31, 2025, a decrease of $7.0 million from $11.4 million as of June 30, 2024.

Non-performing loans totaled $14.4 million as of June 30, 2025, an increase of $1.6 million from $12.8 million as of March 31, 2025. The increase was due to the addition of one credit relationship that is in active workout. This relationship is secured by a residential real estate asset, business assets, and a personal guarantee. As of June 30, 2024, non-performing loans totaled $37.9 million. The decrease when compared to June 30, 2024 was driven by the migration of one loan relationship out of non-performing loans and into OREO, partially offset by additions to non-performing loans.

During the second quarter of 2025, the Company recorded provision expense of $1.8 million, compared to $0.1 million in the first quarter of 2025 and $2.3 million in the second quarter of 2024. The increase in provision expense recorded in the second quarter of 2025 compared to the first quarter of 2025 was primarily driven by loan growth and charge-offs.

Capital

As of June 30, 2025, First Western (“Consolidated”) and First Western Trust Bank (“Bank”) exceeded the minimum capital levels required by their respective regulators. As of June 30, 2025, the Bank was classified as “well capitalized,” as summarized in the following table:

	June 30,
	2025
Consolidated Capital
Tier 1 capital to risk-weighted assets	9.96	%
Common Equity Tier 1 (“CET1”) to risk-weighted assets	9.96
Total capital to risk-weighted assets	12.67
Tier 1 capital to average assets	8.31

Bank Capital
Tier 1 capital to risk-weighted assets	11.36	%
CET1 to risk-weighted assets	11.36
Total capital to risk-weighted assets	12.13
Tier 1 capital to average assets	9.49

Book value per common share increased 0.8% from $26.44 as of March 31, 2025 to $26.64 as of June 30, 2025. Book value per common share increased 4.3% from $25.55 as of June 30, 2024.

Tangible book value per common share⁽¹⁾ increased 0.9% from $23.18 as of March 31, 2025, to $23.39 as of June 30, 2025. Tangible book value per common share increased 5.0% from $22.27 as of June 30, 2024.

During the three months ended June 30, 2025, the Company repurchased 26,287 shares for $0.5 million.

⁽¹⁾ Represents a Non-GAAP financial measure. See “Reconciliations of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

Conference Call, Webcast and Slide Presentation

The Company will host a conference call and webcast at 10:00 a.m. MT/ 12:00 p.m. ET on Friday, July 25, 2025. Telephone access: https://register-conf.media-server.com/register/BI4e9784b7b6ee4a528ae8f3affe52d2ee.

A slide presentation relating to the second quarter 2025 results will be accessible prior to the scheduled conference call. The slide presentation and webcast of the conference call can be accessed on the Events and Presentations page of the Company’s investor relations website at https://myfw.gcs-web.com.

About First Western

First Western is a financial services holding company headquartered in Denver, Colorado, with operations in Colorado, Arizona, Wyoming, California, and Montana. First Western and its subsidiaries provide a fully integrated suite of wealth management services on a private trust bank platform, which includes a comprehensive selection of deposit, loan, trust, wealth planning and investment management products and services. First Western’s common stock is traded on the Nasdaq Global Select Market under the symbol “MYFW.” For more information, please visit www.myfw.com.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include “Tangible Common Equity,” “Tangible Common Book Value per Share,” “Return on Tangible Common Equity,” “Efficiency Ratio,” and “Gross Revenue”. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies. Reconciliation of non-GAAP financial measures to GAAP financial measures are provided at the end of this press release.

Forward-Looking Statements

Statements in this news release regarding our expectations and beliefs about our future financial performance and financial condition, as well as trends in our business and markets are “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “project,” “position,” “outlook,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “opportunity,” “could,” or “may.” The forward-looking statements in this news release are based on current information and on assumptions that we make about future events and circumstances that are subject to a number of risks and uncertainties that are often difficult to predict and beyond our control. As a result of those risks and uncertainties, our actual financial results in the future could differ, possibly materially, from those expressed in or implied by the forward-looking statements contained in this news release and could cause us to make changes to our future plans. Those risks and uncertainties include, without limitation, the risk of geographic concentration in Colorado, Arizona, Wyoming, California, and Montana; the risk of changes in the economy affecting real estate values and liquidity; the risk in our ability to continue to originate residential real estate loans and sell such loans; risks specific to commercial loans and borrowers; the risk of claims and litigation pertaining to our fiduciary responsibilities; the risk of changes in interest rates could reduce our net interest margins and net interest income; increased credit risk, including as a result of deterioration in economic conditions, could require us to increase our allowance for credit losses and could have a material adverse effect on our results of operations and financial condition; the risk in our ability to maintain a strong core deposit base or other low-cost funding sources. Additional information regarding these and other risks and uncertainties to which our business and future financial performance are subject is contained in our Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”) on March 7, 2025 (“Form 10-K”), and other documents we file with the SEC from time to time. We urge readers of this news release to review the “Risk Factors” section our Form 10-K and any updates to those risk factors set forth in our subsequent Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and our other filings with the SEC. Also, our actual financial results in the future may differ from those currently expected due to additional risks and uncertainties of which we are not currently aware or which we do not currently view as, but in the future may become, material to our business or operating results. Due to these and other possible uncertainties and risks, readers are cautioned not to place undue reliance on the forward-looking statements contained in this news release, which speak only as of today’s date, or to make predictions based solely on historical financial performance. Any forward-looking statement speaks only as of the date on which it is made, and we do not undertake any obligation to update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Contacts:
Financial Profiles, Inc.
Tony Rossi
310-622-8221
MYFW@finprofiles.com
IR@myfw.com

First Western Financial, Inc. Condensed Consolidated Statements of Income (unaudited)

	Three Months Ended
	June 30,		March 31,		June 30,
*(dollars in thousands, except per share amounts)*		2025		2025		2024
Interest and dividend income:
Loans, including fees	$	35,085	$	34,068	$	35,275
Loans accounted for under the fair value option		85		111		168
Investment securities		819		681		651
Interest-bearing deposits in other financial institutions		1,356		2,221		1,855
Dividends, restricted stock		155		128		105
Total interest and dividend income		37,500		37,209		38,054

Interest expense:
Deposits		18,208		18,516		20,848
Other borrowed funds		1,408		1,240		1,428
Total interest expense		19,616		19,756		22,276
Net interest income		17,884		17,453		15,778
Less: Provision for credit losses		1,773		80		2,334
Net interest income, after provision for credit losses		16,111		17,373		13,444

Non-interest income:
Trust and investment management fees		4,512		4,677		4,875
Net gain on mortgage loans		1,187		1,067		1,820
Net gain on loans held for sale		—		222		—
Bank fees		293		422		327
Risk management and insurance fees		47		259		109
Income on company-owned life insurance		112		110		106
Net gain (loss) on loans accounted for under the fair value option		26		6		(315	)
Net gain on other real estate owned		—		459		—
Unrealized gain (loss) recognized on equity securities		3		11		(2	)
Other		125		112		52
Total non-interest income		6,305		7,345		6,972
Total income before non-interest expense		22,416		24,718		20,416

Non-interest expense:
Salaries and employee benefits		11,019		11,480		11,097
Occupancy and equipment		2,224		2,210		2,080
Professional services		1,855		1,704		1,826
Technology and information systems		1,030		1,078		1,042
Data processing		1,166		1,122		1,101
Marketing		267		216		243
Amortization of other intangible assets		52		51		56
Other		1,486		1,500		1,556
Total non-interest expense		19,099		19,361		19,001
Income before income taxes		3,317		5,357		1,415
Income tax expense		814		1,172		339
Net income available to common shareholders	$	2,503	$	4,185	$	1,076
Earnings per common share:
Basic	$	0.26	$	0.43	$	0.11
Diluted		0.26		0.43		0.11

First Western Financial, Inc. Condensed Consolidated Balance Sheets (unaudited)

	June 30,			March 31,			June 30,
*(dollars in thousands)*		2025			2025			2024
Assets
Cash and cash equivalents:
Cash and due from banks	$	12,353		$	15,924		$	6,374
Interest-bearing deposits in other financial institutions		219,961			255,658			239,425
Total cash and cash equivalents		232,314			271,582			245,799

Held-to-maturity debt securities (fair value of $93,979, $67,479 and $71,067, respectively), net of allowance for credit losses of $71		99,825			73,775			78,927
Correspondent bank stock, at cost		11,254			5,968			10,804
Mortgage loans held for sale, at fair value		24,151			10,557			26,856
Loans (includes $5,099, $6,112, and $10,190 measured at fair value, respectively)		2,540,096			2,425,367			2,456,063
Allowance for credit losses		(18,994	)		(17,956	)		(27,319	)
Loans, net		2,521,102			2,407,411			2,428,744
Premises and equipment, net		24,488			24,554			24,657
Accrued interest receivable		10,783			10,623			11,339
Accounts receivable		4,435			4,505			5,118
Other receivables		4,915			4,608			4,875
Other real estate owned, net		4,385			4,385			11,421
Goodwill and other intangible assets, net		31,524			31,576			31,741
Deferred tax assets, net		2,809			2,856			6,123
Company-owned life insurance		17,184			17,071			16,741
Other assets		37,628			36,829			34,410
Total assets	$	3,026,797		$	2,906,300		$	2,937,555

Liabilities
Deposits:
Noninterest-bearing	$	361,656		$	409,696		$	396,702
Interest-bearing		2,167,473			2,105,701			2,014,190
Total deposits		2,529,129			2,515,397			2,410,892
Borrowings:
Federal Home Loan Bank and Federal Reserve borrowings		163,416			51,612			191,505
Subordinated notes		44,673			44,621			52,451
Accrued interest payable		1,406			2,371			2,243
Other liabilities		29,326			35,744			33,589
Total liabilities		2,767,950			2,649,745			2,690,680

Shareholders’ Equity
Total shareholders’ equity		258,847			256,555			246,875
Total liabilities and shareholders’ equity	$	3,026,797		$	2,906,300		$	2,937,555

First Western Financial, Inc. Consolidated Financial Summary (unaudited)

	June 30,			March 31,			June 30,
*(dollars in thousands)*		2025			2025			2024
Loan Portfolio
Cash, Securities, and Other	$	161,725		$	101,078		$	143,720
Consumer and Other		15,778			16,688			15,645
Construction and Development		255,870			291,133			309,146
1-4 Family Residential		1,012,662			971,179			904,569
Non-Owner Occupied CRE		655,954			636,820			609,790
Owner Occupied CRE		196,692			182,417			189,353
Commercial and Industrial		239,278			223,197			277,973
Total		2,537,959			2,422,512			2,450,196
Loans accounted for under the fair value option		5,235			6,280			10,494
Total loans held for investment		2,543,194			2,428,792			2,460,690
Deferred (fees) costs and unamortized premiums/(unaccreted discounts), net⁽¹⁾		(3,098	)		(3,425	)		(4,627	)
Loans (includes $5,099, $6,112, and $10,190 measured at fair value, respectively)	$	2,540,096		$	2,425,367		$	2,456,063
Mortgage loans held for sale		24,151			10,557			26,856

Deposit Portfolio
Money market deposit accounts	$	1,632,997		$	1,566,737		$	1,342,753
Time deposits		397,006			379,533			519,597
Interest checking accounts		123,967			144,980			135,759
Savings accounts		13,503			14,451			16,081
Total interest-bearing deposits		2,167,473			2,105,701			2,014,190
Noninterest-bearing accounts		361,656			409,696			396,702
Total deposits	$	2,529,129		$	2,515,397		$	2,410,892

____________________
⁽¹⁾ Includes fair value adjustments on loans held for investment accounted for under the fair value option.

First Western Financial, Inc. Consolidated Financial Summary (unaudited) (continued)

	As of or for the Three Months Ended
	June 30,			March 31,			June 30,
*(dollars in thousands)*		2025			2025			2024
Average Balance Sheets
Assets
Interest-earning assets:
Interest-bearing deposits in other financial institutions	$	121,950		$	198,294		$	141,600
Debt securities		85,739			75,592			75,461
Correspondent bank stock		7,199			5,806			4,801
Gross loans		2,443,758			2,407,482			2,443,937
Mortgage loans held for sale		18,803			13,593			20,254
Loans held at fair value		5,690			6,846			11,314
Total interest-earning assets		2,683,139			2,707,613			2,697,367
Noninterest-earning assets		126,397			145,479			119,247
Total assets	$	2,809,536		$	2,853,092		$	2,816,614

Liabilities and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing deposits	$	2,047,570		$	2,090,505		$	2,001,691
FHLB and Federal Reserve borrowings		75,362			51,885			67,196
Subordinated notes		44,639			52,495			52,414
Total interest-bearing liabilities		2,167,571			2,194,885			2,121,301
Noninterest-bearing liabilities:
Noninterest-bearing deposits		352,391			363,922			412,741
Other liabilities		32,794			41,656			34,051
Total noninterest-bearing liabilities		385,185			405,578			446,792
Total shareholders’ equity		256,780			252,629			248,521
Total liabilities and shareholders’ equity	$	2,809,536		$	2,853,092		$	2,816,614

Yields/Cost of funds (annualized)
Interest-bearing deposits in other financial institutions		4.46	%		4.54	%		5.27	%
Debt securities		3.83			3.65			3.47
Correspondent bank stock		8.64			8.94			8.80
Loans		5.71			5.71			5.75
Loan held at fair value		5.99			6.58			5.97
Mortgage loans held for sale		6.61			5.46			6.83
Total interest-earning assets		5.61			5.57			5.67
Interest-bearing deposits		3.57			3.59			4.19
Total deposits		3.04			3.06			3.47
FHLB and Federal Reserve borrowings		4.14			3.92			4.14
Subordinated notes		5.66			5.70			5.66
Total interest-bearing liabilities		3.63			3.65			4.22
Net interest margin		2.67			2.61			2.35
Net interest rate spread		1.98			1.92			1.45

First Western Financial, Inc. Consolidated Financial Summary (unaudited) (continued)

	As of or for the Three Months Ended
	June 30,			March 31,			June 30,
*(dollars in thousands, except share and per share amounts)*		2025			2025			2024
Asset Quality
Non-performing loans	$	14,394		$	12,758		$	37,909
Non-performing assets		18,779			17,143			49,330
Net charge-offs (recoveries)		657			566			(9	)
Non-performing loans to total loans		0.57	%		0.53	%		1.54	%
Non-performing assets to total assets		0.62			0.59			1.68
Allowance for credit losses to non-performing loans		131.96			140.74			72.06
Allowance for credit losses to total loans		0.75			0.74			1.11
Net charge-offs to average loans		0.03			0.02		*

Assets Under Management	$	7,497,361		$	7,176,624		$	7,011,796

Market Data
Book value per share at period end	$	26.64		$	26.44		$	25.55
Tangible book value per common share⁽¹⁾		23.39			23.18			22.27
Weighted average outstanding shares, basic		9,707,924			9,704,419			9,647,345
Weighted average outstanding shares, diluted		9,809,321			9,798,591			9,750,667
Shares outstanding at period end		9,717,922			9,704,320			9,660,549

Consolidated Capital
Tier 1 capital to risk-weighted assets		9.96	%		10.35	%		9.92	%
CET1 to risk-weighted assets		9.96			10.35			9.92
Total capital to risk-weighted assets		12.67			13.15			13.44
Tier 1 capital to average assets		8.31			8.12			7.91

Bank Capital
Tier 1 capital to risk-weighted assets		11.36	%		11.76	%		11.22	%
CET1 to risk-weighted assets		11.36			11.76			11.22
Total capital to risk-weighted assets		12.13			12.52			12.35
Tier 1 capital to average assets		9.49			9.24			8.95

____________________
⁽¹⁾ Represents a Non-GAAP financial measure. See “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of our Non-GAAP measures to the most directly comparable GAAP financial measure.

First Western Financial, Inc.
Consolidated Financial Summary (unaudited) (continued)

Reconciliations of Non-GAAP Financial Measures

	As of or for the Three Months Ended
	June 30,			March 31,			June 30,
*(dollars in thousands, except share and per share amounts)*		2025			2025			2024
Tangible Common
Total shareholders’ equity	$	258,847		$	256,555		$	246,875
Less: goodwill and other intangibles, net		31,524			31,576			31,741
Tangible common equity	$	227,323		$	224,979		$	215,134

Common shares outstanding, end of period		9,717,922			9,704,320			9,660,549
Tangible common book value per share	$	23.39		$	23.18		$	22.27
Net income available to common shareholders		2,503			4,185			1,076
Return on tangible common equity (annualized)		4.40	%		7.44	%		2.00	%

Efficiency
Non-interest expense	$	19,099		$	19,361		$	19,001
Less: OREO expenses and write-downs		53			(80	)		29
Adjusted non-interest expense	$	19,046		$	19,441		$	18,972

Total income before non-interest expense	$	22,416		$	24,718		$	20,416
Less: unrealized gain (loss) recognized on equity securities		3			11			(2	)
Less: net gain (loss) on loans accounted for under the fair value option		26			6			(315	)
Less: net gain on loans held for sale		—			222			—
Plus: provision for credit losses		1,773			80			2,334
Gross revenue	$	24,160		$	24,559		$	23,067
Efficiency ratio		78.83	%		79.16	%		82.25	%

The MIL Network –

July 25, 2025

MIL-OSI: Red River Bancshares, Inc. Announces 25% Increase to Quarterly Cash Dividend

Source: GlobeNewswire (MIL-OSI)

ALEXANDRIA, La., July 24, 2025 (GLOBE NEWSWIRE) — Red River Bancshares, Inc. (Nasdaq: RRBI) (the “Company”) announced today that on July 24, 2025, its board of directors declared a quarterly cash dividend in an amount equal to $0.15 per share of common stock, up $0.03, or 25%, from $0.12 per share for the prior quarter. The cash dividend is payable on September 18, 2025, to shareholders of record as of the close of business on September 8, 2025. Blake Chatelain, President and Chief Executive Officer of the Company, stated, “We are pleased to increase our dividend this quarter. Our growing dividend reflects our continued focus on returning capital to shareholders, while remaining committed to maintaining strong capital ratios.”

About Red River Bancshares, Inc.
The Company is the bank holding company for Red River Bank, a Louisiana state-chartered bank established in 1999 that provides a fully integrated suite of banking products and services tailored to the needs of our commercial and retail customers. Red River Bank operates from a network of 28 banking centers throughout Louisiana and one combined loan and deposit production office in New Orleans, Louisiana. Banking centers are located in the following Louisiana markets: Central, which includes the Alexandria metropolitan statistical area (“MSA”); Northwest, which includes the Shreveport-Bossier City MSA; Capital, which includes the Baton Rouge MSA; Southwest, which includes the Lake Charles MSA; the Northshore, which includes Covington; Acadiana, which includes the Lafayette MSA; and New Orleans.

Contact:
Julia E. Callis
Senior Vice President, General Counsel & Corporate Secretary
318-561-4042
julia.callis@redriverbank.net

The MIL Network –

July 25, 2025

MIL-OSI: STMicroelectronics to strengthen position in sensors with acquisition of NXP’s MEMS sensors business

Source: GlobeNewswire (MIL-OSI)

PR N°C3350C

STMicroelectronics to strengthen position in sensors
with acquisition of NXP’s MEMS sensors business

ST enters into agreement for acquisition of NXP’s MEMS sensor business for a purchase price of up to US$950 million in cash, including US$900 million upfront and US$50 million subject to the achievement of technical milestones
The MEMS businesses of ST and NXP are strongly complementary in terms of technology and product portfolio, with the combined product offering to be well balanced across automotive, industrial and consumer end markets
NXP’s MEMS Business generated revenue of about US$300 million in calendar year 2024 with gross and operating margins significantly accretive for ST
All-cash transaction to be financed from existing liquidity and expected to be accretive to ST Earnings Per Share from completion

Geneva, Switzerland, July 24, 2025 — STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, is strengthening its global sensors capabilities with the planned acquisition of NXP Semiconductors’ (NASDAQ: NXPI) MEMS sensors business, focused on automotive safety products as well as sensors for industrial applications. The transaction will complement and expand ST’s leading MEMS sensors technology and product portfolio, unlocking new opportunities for development across automotive, industrial and consumer applications.

“The planned acquisition is a great strategic fit for ST,” says Marco Cassis, President, Analog, Power & Discrete, MEMS and Sensors Group of STMicroelectronics. “Together with ST’s existing MEMS portfolio, these highly complementary technologies and customer relationships, focused on automotive safety and industrial technologies, will strengthen our position in sensors across key segments in automotive, industrial and consumer applications. By leveraging our IDM model, with technology R&D, product design and advanced manufacturing, we will better serve all our customers worldwide.”

“NXP is a leading supplier of automotive MEMS based motion and pressure sensors, with a long history of strong customer adoption,” said Jens Hinrichsen, Executive Vice President and General Manager, Analog and Automotive Embedded Systems of NXP. “However, after careful portfolio review the company has decided the business does not fit into its long-term strategic direction. We have agreed with STMicroelectronics that the product line will fit ideally into ST’s portfolio, manufacturing footprint and strategic roadmap. We are gratified that the MEMS sensor team will have an excellent home and long-term future at ST.”

The MEMS sensors portfolio to be acquired by ST primarily targets automotive safety sensors, both passive (airbags) and active (vehicle dynamics), as well as monitoring sensors (TPMS¹, engine management, convenience, and security). It also includes pressure sensors and accelerometers for industrial applications. ST is well-positioned to leverage strong, established customer relationships with automotive Tier1s with its innovation roadmap in a rapidly expanding MEMS automotive market. MEMS technologies increasingly enable advanced functionalities for safety, electrification, automation, and connected vehicles, paving the way for future revenue growth.

MEMS inertial sensors in Automotive are expected to grow at a faster pace than the broader MEMS market. The business to be acquired generated about 300m$ revenues in 2024 with gross and operating margin both significantly accretive for ST. It is also expected to be accretive to ST Earnings Per Share from completion.

The planned acquisition will enhance ST’s MEMS technology, product R&D capabilities and roadmap, with leading IP, technology and products for automotive safety applications and highly skilled R&D teams. The expanded business will take advantage of ST’s Integrated Device Manufacturer model for MEMS, which involves every stage of MEMS development, from design and manufacturing to testing and packaging, enabling faster innovation cycles and greater flexibility for customization.

STMicroelectronics and NXP have entered into a definitive transaction agreement for a purchase price of up to US$950 million in cash, including US$900 million upfront and US$50 million subject to the achievement of technical milestones. The transaction which will be financed with existing liquidity is subject to customary closing conditions, including regulatory approvals, and is expected to close in H1 2026.

Forward-looking Information

Some of the statements contained in this release that are not historical facts are statements of future expectations and other forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 or Section 21E of the Securities Exchange Act of 1934, each as amended) that are based on management’s current views and assumptions, and are conditioned upon and also involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those anticipated by such statements due to, among other factors:

changes in global trade policies, including the adoption and expansion of tariffs and trade barriers, that could affect the macro-economic environment and may directly or indirectly adversely impact the demand for our products;
uncertain macro-economic and industry trends (such as inflation and fluctuations in supply chains), which may impact production capacity and end-market demand for our products;
customer demand that differs from projections which may require us to undertake transformation measures that may not be successful in realizing the expected benefits in full or at all;
the ability to design, manufacture and sell innovative products in a rapidly changing technological environment;
changes in economic, social, public health, labor, political, or infrastructure conditions in the locations where we, our customers, or our suppliers operate, including as a result of macro-economic or regional events, geopolitical and military conflicts, social unrest, labor actions, or terrorist activities;
unanticipated events or circumstances, which may impact our ability to execute our plans and/or meet the objectives of our R&D and manufacturing programs, which benefit from public funding;
financial difficulties with any of our major distributors or significant curtailment of purchases by key customers;
the loading, product mix, and manufacturing performance of our production facilities and/or our required volume to fulfill capacity reserved with suppliers or third-party manufacturing providers;
availability and costs of equipment, raw materials, utilities, third-party manufacturing services and technology, or other supplies required by our operations (including increasing costs resulting from inflation);
the functionalities and performance of our IT systems, which are subject to cybersecurity threats and which support our critical operational activities including manufacturing, finance and sales, and any breaches of our IT systems or those of our customers, suppliers, partners and providers of third-party licensed technology;
theft, loss, or misuse of personal data about our employees, customers, or other third parties, and breaches of data privacy legislation;
the impact of IP claims by our competitors or other third parties, and our ability to obtain required licenses on reasonable terms and conditions;
changes in our overall tax position as a result of changes in tax rules, new or revised legislation, the outcome of tax audits or changes in international tax treaties which may impact our results of operations as well as our ability to accurately estimate tax credits, benefits, deductions and provisions and to realize deferred tax assets;
variations in the foreign exchange markets and, more particularly, the U.S. dollar exchange rate as compared to the Euro and the other major currencies we use for our operations;
the outcome of ongoing litigation as well as the impact of any new litigation to which we may become a defendant;
product liability or warranty claims, claims based on epidemic or delivery failure, or other claims relating to our products, or recalls by our customers for products containing our parts;
natural events such as severe weather, earthquakes, tsunamis, volcano eruptions or other acts of nature, the effects of climate change, health risks and epidemics or pandemics in locations where we, our customers or our suppliers operate;
increased regulation and initiatives in our industry, including those concerning climate change and sustainability matters and our goal to become carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027;
epidemics or pandemics, which may negatively impact the global economy in a significant manner for an extended period of time, and could also materially adversely affect our business and operating results;
industry changes resulting from vertical and horizontal consolidation among our suppliers, competitors, and customers;
the ability to successfully ramp up new programs that could be impacted by factors beyond our control, including the availability of critical third-party components and performance of subcontractors in line with our expectations; and
individual customer use of certain products, which may differ from the anticipated uses of such products and result in differences in performance, including energy consumption, may lead to a failure to achieve our disclosed emission-reduction goals, adverse legal action or additional research costs.

Such forward-looking statements are subject to various risks and uncertainties, which may cause actual results and performance of our business to differ materially and adversely from the forward-looking statements. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as “believes”, “expects”, “may”, “are expected to”, “should”, “would be”, “seeks” or “anticipates” or similar expressions or the negative thereof or other variations thereof or comparable terminology, or by discussions of strategy, plans or intentions.

Some of these risk factors are set forth and are discussed in more detail in “Item 3. Key Information — Risk Factors” included in our Annual Report on Form 20-F for the year ended December 31, 2024 as filed with the Securities and Exchange Commission (“SEC”) on February 27, 2025. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this press release as anticipated, believed or expected. We do not intend, and do not assume any obligation, to update any industry information or forward-looking statements set forth in this release to reflect subsequent events or circumstances.
Unfavorable changes in the above or other factors listed under “Item 3. Key Information — Risk Factors” from time to time in our Securities and Exchange Commission (“SEC”) filings, could have a material adverse effect on our business and/or financial condition.

About STMicroelectronics
At ST, we are 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud connected autonomous things. We are on track to be carbon neutral in all direct and indirect emissions (scopes 1 and 2), product transportation, business travel, and employee commuting emissions (our scope 3 focus), and to achieve our 100% renewable electricity sourcing goal by the end of 2027. Further information can be found at www.st.com.

For further information, please contact:

INVESTOR RELATIONS
Jérôme Ramel
EVP Corporate Development & Integrated External Communication
Tel: +41.22.929.59.20
jerome.ramel@st.com

MEDIA RELATIONS
Alexis Breton
Group VP Corporate External Communications
Tel: +33.6.59.16.79.08
alexis.breton@st.com

¹ Tire Pressure Monitoring Systems.

Attachment

C3350C – ST to acquire NXP MEMS

The MIL Network –

July 25, 2025

MIL-OSI: Cenovus to hold second-quarter 2025 conference call and webcast on July 31

Source: GlobeNewswire (MIL-OSI)

CALGARY, Alberta, July 24, 2025 (GLOBE NEWSWIRE) — Cenovus Energy Inc. (TSX:CVE) (NYSE:CVE) will release its second-quarter 2025 results on Thursday, July 31, 2025. The news release will provide consolidated second-quarter operating and financial information. The company’s financial statements will be available on Cenovus’s website, cenovus.com.

Second-quarter 2025 conference call: 9 a.m. MT (11 a.m. ET)

For analysts wanting to join the call, please register in advance.

To participate, you must complete the online registration form in advance of the conference call start time. Register ahead of time to receive a unique PIN to access the conference call via telephone. Once registered, participants can dial into the conference call from their telephone via the unique PIN or click on the “Call Me” option to receive an automated call directly on their telephone.

To listen to the conference call online, a live audio webcast will also be available and archived for approximately 30 days.

Cenovus Energy Inc.

Cenovus Energy Inc. is an integrated energy company with oil and natural gas production operations in Canada and the Asia Pacific region, and upgrading, refining and marketing operations in Canada and the United States. The company is committed to maximizing value by developing its assets in a safe, responsible and cost-efficient manner, integrating environmental, social and governance considerations into its business plans. Cenovus common shares and warrants are listed on the Toronto and New York stock exchanges, and the company’s preferred shares are listed on the Toronto Stock Exchange. For more information, visit cenovus.com.

Find Cenovus on Facebook, LinkedIn, YouTube and Instagram.

Cenovus contacts:

Investors	Media
Investor Relations general line 403-766-7711	Media Relations general line 403-766-7751

The MIL Network –

July 25, 2025

MIL-OSI: Midland States Bancorp, Inc. Announces 2025 Second Quarter Results

Source: GlobeNewswire (MIL-OSI)

EFFINGHAM, Ill., July 24, 2025 (GLOBE NEWSWIRE) — Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income available to common shareholders of $9.8 million, or $0.44 per diluted share, for the second quarter of 2025, compared to net income available to common shareholders of $23.5 million, or $1.06 per diluted share, for the second quarter of 2024.

This also compares to a net loss of $143.2 million, or $6.58 per diluted share, for the first quarter of 2025, which included impairment of goodwill of $154.0 million.

2025 Second Quarter Results

Net income available to common shareholders of $9.8 million, or $0.44 per diluted share, for the second quarter of 2025
Adjusted earnings of $9.8 million, or $0.44 per diluted share, compared to $10.8 million, or $0.49 per diluted share, in prior quarter
Pre-provision net revenue of $32.2 million, or $1.48 per diluted share, for the second quarter of 2025 compared to $27.0 million, or $1.24 per diluted share, for the first quarter of 2025
Net interest margin of 3.56%, compared to 3.49% in prior quarter
Nonperforming assets to total assets of 1.56%, compared to 2.08% in prior quarter
Total capital to risk-weighted assets of 14.50% and common equity tier 1 capital of 9.02%

Discussion of Outlook; President & Chief Executive Officer, Jeffrey G. Ludwig:

“Second quarter marked a notable step in returning Midland to a more normalized operating environment, with progress on several strategic initiatives ranging from growing our community bank to further improving our credit quality. Capital levels increased quarter-over-quarter, and we continue to target growing our common equity tier 1 capital ratio to our target of 10.0%.

During the quarter, we had limited new substandard or nonperforming loans identified, and importantly saw our non-performing assets decrease to $111 million, or 1.56% of total assets, versus $151 million, or 2.08% of total assets in the first quarter. After quarter-end, the bank successfully exited two larger non-performing relationships in July totaling $29 million, which all else equal would bring our non-performing asset ratio down another 41 basis points. Tighter underwriting standards in our equipment finance and specialty finance portfolios have already begun to meaningfully reduce our exposure to these higher-risk portfolios. In addition, we completed the previously announced sale of our GreenSky loans in April further improving our capital and liquidity.

Profitability trends were also favorable in the second quarter, with net interest margin expanding 7 basis points to 3.56%, pre-provision net revenue growing to $32.2 million, and strong contribution from our wealth management platform. We expect further improvement in profitability over the balance of 2025.”

Key Points for Second Quarter and Outlook

Acceleration of Credit Clean-up; Tightened Underwriting Standards

Substandard accruing loans and nonperforming loans decreased to $58.5 million and $109.5 million at June 30, 2025, respectively. No significant new substandard or nonperforming loans were identified during the quarter.
Net charge-offs were $29.9 million for the quarter, including:
- $13.9 million of charge-offs in our specialty finance portfolio, of which $10.2 million was specifically reserved for in a prior quarter
- $4.7 million of fully reimbursed charge-offs related to our third party lending programs
- $3.9 million of charge-offs in our equipment finance portfolio as we continue to see credit issues primarily in the trucking industry
Provision for credit losses on loans was $17.4 million for the second quarter of 2025, primarily as a result of continued trends in the equipment finance portfolio.
Allowance for credit losses on loans was $92.7 million, or 1.83% of total loans.

The table below summarizes certain information regarding the Company’s loan portfolio asset quality as of June 30, 2025.

	As of and for the Three Months Ended
(dollars in thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2025			2025			2024			2024			2024
Asset Quality
Loans 30-89 days past due	$	40,959		$	48,221		$	43,681		$	55,329		$	54,045
Nonperforming loans		109,512			145,690			150,907			114,556			112,124
Nonperforming assets		111,174			151,264			157,409			126,771			123,774
Substandard accruing loans		58,478			77,620			84,058			167,549			135,555
Net charge-offs		29,854			16,878			112,776			22,302			13,883
Loans 30-89 days past due to total loans		0.81	%		0.96	%		0.85	%		0.97	%		0.93	%
Nonperforming loans to total loans		2.16	%		2.90	%		2.92	%		2.00	%		1.92	%
Nonperforming assets to total assets		1.56	%		2.08	%		2.10	%		1.65	%		1.61	%
Allowance for credit losses to total loans		1.83	%		2.10	%		2.15	%		2.64	%		2.67	%
Allowance for credit losses to nonperforming loans		84.64	%		72.19	%		73.69	%		131.87	%		138.63	%
Net charge-offs to average loans		2.34	%		1.35	%		7.94	%		1.53	%		0.94	%

Solid Growth Trends in Community Bank & Wealth Management

Total loans at June 30, 2025 were $5.06 billion, an increase of $46.6 million from March 31, 2025. Key changes in the loan portfolio were as follows:
- Loans originated by our Community Bank increased $58.9 million, or 1.8%, from March 31, 2025. Pipelines remain strong and we continued to add to our sales teams in the second quarter.
- Non-core loans originated through third-party programs increased $212.8 million from March 31, 2025, as a result of the financing of the sale of the GreenSky portfolio.
- We continue to pursue an intentional decrease in our Specialty Finance loan portfolio, as we tighten credit standards. Balances in this loan portfolio decreased $173.3 million during the quarter.
- Equipment finance portfolio balances declined $51.8 million during the quarter as we continue to reduce the overall balances in this unit and tighten underwriting standards.
Total deposits were $5.95 billion at June 30, 2025, an increase of $10.5 million from March 31, 2025. The increase in deposits reflects the following:
- Commercial and public fund deposits increased $70.5 million and $127.8 million, respectively, in the quarter.
- Noninterest-bearing deposits decreased $16.5 million in the quarter.
- Retail and servicing deposits decreased $34.7 million and $56.9 million, respectively, in the quarter.
- Brokered deposits, including both money market and time deposits, decreased by $109.4 million.
- Servicing deposits decreased $284.4 million in July 2025 due to the acquisition of one of our servicing customers, expected to positively impact future margin.
Wealth Management revenue totaled $7.4 million in the second quarter of 2025. Assets under administration were $4.18 billion at June 30, 2025. The Company added three new sales positions in the second quarter of 2025 and continues to experience strong pipelines.

Net Interest Margin

Net interest margin was 3.56%, up 7 basis points compared to the first quarter, and we saw a continued decline in the cost of funding. Rate cuts enacted by the Federal Reserve Bank in late 2024 continue to result in a lower cost of deposits for the Company, which fell to 2.19% in the second quarter of 2025.

The following table summarizes certain factors affecting the Company’s net interest margin for the second quarter of 2025.

	For the Three Months Ended
(dollars in thousands)	June 30, 2025						March 31, 2025						June 30, 2024
Interest-earning assets	Average Balance		Interest & Fees		Yield/ Rate		Average Balance		Interest & Fees		Yield/ Rate		Average Balance		Interest & Fees		Yield/ Rate
Cash and cash equivalents	$	67,326	$	716	4.27	%	$	68,671	$	718	4.24	%	$	65,250	$	875	5.40	%
Investment securities⁽¹⁾		1,367,180		17,164	5.04			1,311,887		15,517	4.80			1,098,452		12,805	4.69
Loans⁽¹⁾⁽²⁾		5,123,558		79,240	6.20			5,057,394		78,118	6.26			5,915,523		92,581	6.29
Loans held for sale		44,642		377	3.39			326,348		4,563	5.67			4,910		84	6.84
Nonmarketable equity securities		38,803		694	7.17			35,614		647	7.37			44,216		963	8.76
Total interest-earning assets		6,641,509		98,191	5.93			6,799,914		99,563	5.94			7,128,351		107,308	6.05
Noninterest-earning assets		513,801						667,940						669,370
Total assets	$	7,155,310					$	7,467,854					$	7,797,721

Interest-Bearing Liabilities
Interest-bearing deposits	$	4,845,609	$	32,290	2.67	%	$	5,074,007	$	34,615	2.77	%	$	5,101,365	$	39,476	3.11	%
Short-term borrowings		60,117		573	3.82			73,767		700	3.85			30,449		308	4.07
FHLB advances & other borrowings		363,505		3,766	4.16			299,578		3,163	4.28			500,758		5,836	4.69
Subordinated debt		77,757		1,394	7.19			77,752		1,387	7.23			93,090		1,265	5.47
Trust preferred debentures		51,439		1,206	9.40			51,283		1,200	9.49			50,921		1,358	10.73
Total interest-bearing liabilities		5,398,427		39,229	2.91			5,576,387		41,065	2.99			5,776,583		48,243	3.36
Noninterest-bearing deposits		1,075,945						1,052,181						1,132,451
Other noninterest-bearing liabilities		108,819						123,613						104,841
Shareholders’ equity		572,119						715,673						783,846
Total liabilities and shareholder’s equity	$	7,155,310					$	7,467,854					$	7,797,721

Net Interest Margin			$	58,962	3.56	%			$	58,498	3.49	%			$	59,065	3.33	%

Cost of Deposits					2.19	%					2.29	%					2.55	%

(1) Interest income and average rates for tax-exempt loans and investment securities are presented on a tax-equivalent basis, assuming a federal income tax rate of 21%. Tax-equivalent adjustments totaled $0.3 million, $0.2 million and $0.2 million for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.

(2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.

Trends in Noninterest Income and Expense

Noninterest income was $23.5 million for the second quarter of 2025, compared to $17.8 million for the first quarter of 2025. Noninterest income for the second quarter of 2025 included credit enhancement income of $3.8 million, primarily related to an increase in charge-offs in our third-party loan origination and servicing program which were fully reimbursed by our program sponsor.
Noninterest expense was $50.0 million for the second quarter of 2025, compared to $203.0 million for the first quarter of 2025, which included goodwill impairment of $154.0 million. The Company continues to experience higher levels of professional services, legal fees and other expenses related to loan collections and the restatement of our financial statements.

Second Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs):

	As of and for the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Return on average assets		0.67	%		(7.66	)%		(1.59	)%		1.05	%		1.33	%
Pre-provision net revenue to average assets⁽¹⁾		1.81	%		1.47	%		1.83	%		2.21	%		2.07	%
Net interest margin		3.56	%		3.49	%		3.34	%		3.34	%		3.33	%
Efficiency ratio ⁽¹⁾		60.60	%		64.29	%		62.31	%		53.61	%		55.79	%
Noninterest expense to average assets		2.80	%		11.02	%		3.04	%		2.56	%		2.62	%
Net charge-offs to average loans		2.34	%		1.35	%		7.94	%		1.53	%		0.94	%
Tangible book value per share at period end ⁽¹⁾	$	20.68		$	20.54		$	19.83		$	22.70		$	21.07
Diluted earnings (loss) per common share	$	0.44		$	(6.58	)	$	(1.52	)	$	0.83		$	1.06
Common shares outstanding at period end		21,515,138			21,503,036			21,494,485			21,393,905			21,377,215
Trust assets under administration	$	4,181,180		$	4,101,414		$	4,153,080		$	4,268,539		$	3,996,175

(1) Non-GAAP financial measures. Refer to page 10 for a reconciliation to the comparable GAAP financial measures.

Capital

At June 30, 2025, Midland States Bank and the Company exceeded all regulatory capital requirements under Basel III, and Midland States Bank met the qualifications to be a ‘‘well-capitalized’’ financial institution, as summarized in the following table:

	As of June 30, 2025
	Midland States Bank	Midland States Bancorp, Inc.	Minimum Regulatory Requirements ⁽²⁾
Total capital to risk-weighted assets	13.74%	14.50%	10.50%
Tier 1 capital to risk-weighted assets	12.49%	12.07%	8.50%
Common equity Tier 1 capital to risk-weighted assets	12.49%	9.02%	7.00%
Tier 1 leverage ratio	9.93%	9.59%	4.00%
Tangible common equity to tangible assets ⁽¹⁾	N/A	6.27%	N/A

(1) A non-GAAP financial measure. Refer to page 10 for a reconciliation to the comparable GAAP financial measure.
(2) Includes the capital conservation buffer of 2.5%, as applicable.

About Midland States Bancorp, Inc.

Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank. As of June 30, 2025, the Company had total assets of approximately $7.11 billion, and its Wealth Management Group had assets under administration of approximately $4.18 billion. The Company provides a full range of commercial and consumer banking products and services and business equipment financing, merchant credit card services, trust and investment management, insurance and financial planning services. For additional information, visit https://www.midlandsb.com/ or https://www.linkedin.com/company/midland-states-bank.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP.

These non-GAAP financial measures include “Pre-provision net revenue,” “Pre-provision net revenue per diluted share,” “Pre-provision net revenue to average assets,” “Efficiency ratio,” “Tangible common equity to tangible assets,” and “Tangible book value per share.” The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s funding profile and profitability. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, the measures in this press release may not be comparable to other similarly titled measures as presented by other companies.

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release includes “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s plans, objectives, future performance, goals and future earnings levels, including currently anticipated levels of noninterest income and operating expenses. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions; the impact of federal trade policy, inflation, increased deposit volatility and potential regulatory developments; changes in the financial markets; changes in business plans as circumstances warrant; changes to U.S. tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “will,” “propose,” “may,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “continue,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

CONTACTS:
Jeffrey G. Ludwig, President and CEO, at jludwig@midlandsb.com or (217) 342-7321
Eric T. Lemke, Chief Financial Officer, at elemke@midlandsb.com or (217) 342-7321


MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited)

	As of
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2025			2025			2024			2024			2024
Assets
Cash and cash equivalents	$	176,587		$	102,006		$	114,766		$	121,873		$	124,646
Investment securities		1,354,652			1,368,405			1,212,366			1,216,795			1,099,654
Loans		5,064,695			5,018,053			5,167,574			5,728,237			5,829,057
Allowance for credit losses on loans		(92,690	)		(105,176	)		(111,204	)		(151,067	)		(155,443	)
Total loans, net		4,972,005			4,912,877			5,056,370			5,577,170			5,673,614
Loans held for sale		7,899			287,821			344,947			8,001			5,555
Premises and equipment, net		86,240			86,719			85,710			84,672			83,040
Other real estate owned		393			4,183			4,941			8,646			8,304
Loan servicing rights, at lower of cost or fair value		16,720			17,278			17,842			18,400			18,902
Goodwill		7,927			7,927			161,904			161,904			161,904
Other intangible assets, net		10,362			11,189			12,100			13,052			14,003
Company-owned life insurance		214,392			212,336			211,168			209,193			207,211
Credit enhancement asset		5,800			5,615			16,804			20,633			18,202
Other assets		254,901			268,448			267,891			263,850			293,039
Total assets	$	7,107,878		$	7,284,804		$	7,506,809		$	7,704,189		$	7,708,074

Liabilities and Shareholders’ Equity
Noninterest-bearing demand deposits	$	1,074,212		$	1,090,707		$	1,055,564		$	1,050,617		$	1,108,521
Interest-bearing deposits		4,872,707			4,845,727			5,141,679			5,206,219			5,009,502
Total deposits		5,946,919			5,936,434			6,197,243			6,256,836			6,118,023
Short-term borrowings		8,654			40,224			87,499			13,849			7,208
FHLB advances and other borrowings		345,000			498,000			258,000			425,000			600,000
Subordinated debt		77,759			77,754			77,749			82,744			91,656
Trust preferred debentures		51,518			51,358			51,205			51,058			50,921
Other liabilities		104,323			109,597			124,266			103,481			103,487
Total liabilities		6,534,173			6,713,367			6,795,962			6,932,968			6,971,295
Total shareholders’ equity		573,705			571,437			710,847			771,221			736,779
Total liabilities and shareholders’ equity	$	7,107,878		$	7,284,804		$	7,506,809		$	7,704,189		$	7,708,074

MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

	For the Three Months Ended
	June 30,		March 31,			December 31,			September 30,			June 30,
(dollars in thousands, except per share data)	2025			2025			2024			2024			2024
Net interest income:
Interest income	$	97,924	$	99,355		$	104,470		$	108,994		$	107,138
Interest expense		39,229		41,065			45,900			49,884			48,243
Net interest income		58,695		58,290			58,570			59,110			58,895
Provision for credit losses:
Provision for credit losses on loans		17,369		10,850			74,183			17,925			8,482
Recapture of credit losses on unfunded commitments		—		—			—			—			(200	)
Total provision for credit losses		17,369		10,850			74,183			17,925			8,282
Net interest income after provision for credit losses		41,326		47,440			(15,613	)		41,185			50,613
Noninterest income:
Wealth management revenue		7,379		7,350			7,660			7,104			6,801
Service charges on deposit accounts		3,351		3,305			3,506			3,411			3,121
Interchange revenue		3,463		3,151			3,528			3,506			3,563
Residential mortgage banking revenue		756		676			637			697			557
Income on company-owned life insurance		2,068		2,334			1,975			1,981			1,925
Loss on sales of investment securities, net		—		—			(34	)		(44	)		(152	)
Credit enhancement income (loss)		3,848		(578	)		15,810			14,206			14,328
Other income		2,669		1,525			2,289			2,684			1,841
Total noninterest income		23,534		17,763			35,371			33,545			31,984
Noninterest expense:
Salaries and employee benefits		25,685		26,416			22,283			24,382			22,872
Occupancy and equipment		4,166		4,498			4,286			4,393			3,964
Data processing		7,035		6,919			7,278			6,955			7,205
Professional services		2,792		2,741			1,580			1,744			2,243
Impairment on goodwill		—		153,977			—			—			—
Amortization of intangible assets		827		911			952			951			1,016
Impairment on leased assets and surrendered assets		—		—			7,601			—			—
FDIC insurance		1,422		1,463			1,383			1,402			1,219
Other expense		8,065		6,080			13,336			9,937			12,265
Total noninterest expense		49,992		203,005			58,699			49,764			50,784
Income (loss) before income taxes		14,868		(137,802	)		(38,941	)		24,966			31,813
Income tax expense (benefit)		2,844		3,172			(8,172	)		4,535			6,094
Net income (loss)		12,024		(140,974	)		(30,769	)		20,431			25,719
Preferred stock dividends		2,228		2,228			2,228			2,229			2,228
Net income (loss) available to common shareholders	$	9,796	$	(143,202	)	$	(32,997	)	$	18,202		$	23,491

Basic earnings (loss) per common share	$	0.44	$	(6.58	)	$	(1.52	)	$	0.83		$	1.06
Diluted earnings (loss) per common share	$	0.44	$	(6.58	)	$	(1.52	)	$	0.83		$	1.06
Weighted average common shares outstanding		21,820,190		21,795,570			21,748,428			21,675,818			21,731,195
Weighted average diluted common shares outstanding		21,820,190		21,795,570			21,753,711			21,678,242			21,734,849

MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued)

	As of
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)	2025		2025		2024		2024		2024
Loan Portfolio Mix
Commercial loans	$	1,178,792	$	879,286	$	934,847	$	879,590	$	955,667
Equipment finance loans		364,526		390,276		416,970		442,552		461,409
Equipment finance leases		347,155		373,168		391,390		417,531		428,659
Commercial FHA warehouse lines		1,068		—		8,004		50,198		—
Total commercial loans and leases		1,891,541		1,642,730		1,751,211		1,789,871		1,845,735
Commercial real estate		2,412,761		2,592,325		2,591,664		2,510,472		2,421,505
Construction and land development		258,729		264,966		299,842		422,253		476,528
Residential real estate		361,261		373,095		380,557		378,658		378,393
Consumer		140,403		144,937		144,300		626,983		706,896
Total loans	$	5,064,695	$	5,018,053	$	5,167,574	$	5,728,237	$	5,829,057

Loan Portfolio Segment
Regions
Eastern	$	901,848	$	897,792	$	899,611	$	902,993	$	884,343
Northern		753,590		747,028		714,562		730,752		724,782
Southern		778,124		711,787		720,188		694,810		699,893
St. Louis		884,685		902,743		868,190		850,327		825,291
Total Community Bank		3,318,247		3,259,350		3,202,551		3,178,882		3,134,309
Specialty finance		701,244		874,567		1,038,238		1,018,961		1,107,508
Equipment finance		711,681		763,444		808,359		860,083		890,068
Non-core loan program and other⁽¹⁾		333,523		120,692		118,426		670,311		697,172
Total loans	$	5,064,695	$	5,018,053	$	5,167,574	$	5,728,237	$	5,829,057

Deposit Portfolio Mix
Noninterest-bearing demand	$	1,074,212	$	1,090,707	$	1,055,564	$	1,050,617	$	1,108,521
Interest-bearing:
Checking		2,180,717		2,161,282		2,378,256		2,389,970		2,343,533
Money market		1,216,357		1,154,403		1,173,630		1,187,139		1,143,668
Savings		511,470		522,663		507,305		510,260		538,462
Time		818,813		818,732		822,981		849,413		852,415
Brokered time		145,350		188,647		259,507		269,437		131,424
Total deposits	$	5,946,919	$	5,936,434	$	6,197,243	$	6,256,836	$	6,118,023

Deposit Portfolio by Channel
Retail	$	2,811,838	$	2,846,494	$	2,749,650	$	2,695,077	$	2,742,494
Commercial		1,145,369		1,074,837		1,209,815		1,218,657		1,217,068
Public Funds		618,172		490,374		505,912		574,704		568,889
Wealth & Trust		304,626		301,251		340,615		332,242		298,659
Servicing		785,659		842,567		896,436		958,662		931,892
Brokered Deposits		248,707		358,063		473,451		390,558		238,708
Other		32,548		22,848		21,364		86,936		120,313
Total deposits	$	5,946,919	$	5,936,434	$	6,197,243	$	6,256,836	$	6,118,023

(1) Non-core loan programs refer to loan portfolios originated through third parties or capital markets, including loans to finance the sale of the GreenSky portfolio.


MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)

Adjusted Earnings Reconciliation

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands, expect per share data)		2025			2025			2024			2024			2024
Income (loss) before income tax (benefit) expense – GAAP	$	14,868		$	(137,802	)	$	(38,941	)	$	24,966		$	31,813
Adjustments to noninterest income:
Loss on sales of investment securities, net		—			—			34			44			152
Loss (gain) on repurchase of subordinated debt		—			—			13			(77	)		(167	)
Total adjustments to noninterest income		—			—			47			(33	)		(15	)
Adjustments to noninterest expense:
Impairment on goodwill		—			(153,977	)		—			—			—
Total adjustments to noninterest expense		—			(153,977	)		—			—			—
Adjusted earnings (loss) pre tax – non-GAAP		14,868			16,175			(38,894	)		24,933			31,798
Adjusted earnings (loss) tax (benefit) expense		2,844			3,172			(8,159	)		4,526			6,090
Adjusted earnings (loss) – non-GAAP		12,024			13,003			(30,735	)		20,407			25,708
Preferred stock dividends		2,228			2,228			2,228			2,229			2,228
Adjusted earnings (loss) available to common shareholders	$	9,796		$	10,775		$	(32,963	)	$	18,178		$	23,480
Adjusted diluted earnings (loss) per common share	$	0.44		$	0.49		$	(1.52	)	$	0.82		$	1.06

Pre-Provision Net Revenue Reconciliation

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2025			2025			2024			2024			2024
Income (loss) before income taxes	$	14,868		$	(137,802	)	$	(38,941	)	$	24,966		$	31,813
Provision for credit losses		17,369			10,850			74,183			17,925			8,282
Impairment on goodwill		—			153,977			—			—			—
Pre-provision net revenue	$	32,237		$	27,025		$	35,242		$	42,891		$	40,095
Pre-provision net revenue per diluted share	$	1.48		$	1.24		$	1.62		$	1.98		$	1.84
Pre-provision net revenue to average assets		1.81	%		1.47	%		1.83	%		2.21	%		2.07	%

MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)

Efficiency Ratio Reconciliation

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2025			2025			2024			2024			2024
Noninterest expense – GAAP	$	49,992		$	203,005		$	58,699		$	49,764		$	50,784
Impairment on goodwill		—			(153,977	)		—			—			—
Adjusted noninterest expense	$	49,992		$	49,028		$	58,699		$	49,764		$	50,784

Net interest income – GAAP	$	58,695		$	58,290		$	58,570		$	59,110		$	58,895
Effect of tax-exempt income		267			208			220			205			170
Adjusted net interest income		58,962			58,498			58,790			59,315			59,065

Noninterest income – GAAP		23,534			17,763			35,371			33,545			31,984
Loss on sales of investment securities, net		—			—			34			44			152
Loss (gain) on repurchase of subordinated debt		—			—			13			(77	)		(167	)
Adjusted noninterest income		23,534			17,763			35,418			33,512			31,969

Adjusted total revenue	$	82,496		$	76,261		$	94,208		$	92,827		$	91,034

Efficiency ratio		60.60	%		64.29	%		62.31	%		53.61	%		55.79	%

Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share

	As of
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands, except per share data)		2025			2025			2024			2024			2024
Shareholders’ Equity to Tangible Common Equity
Total shareholders’ equity—GAAP	$	573,705		$	571,437		$	710,847		$	771,221		$	736,779
Adjustments:
Preferred Stock		(110,548	)		(110,548	)		(110,548	)		(110,548	)		(110,548	)
Goodwill		(7,927	)		(7,927	)		(161,904	)		(161,904	)		(161,904	)
Other intangible assets, net		(10,362	)		(11,189	)		(12,100	)		(13,052	)		(14,003	)
Tangible common equity		444,868			441,773			426,295			485,717			450,324

Total Assets to Tangible Assets:
Total assets—GAAP	$	7,107,878		$	7,284,804		$	7,506,809		$	7,704,189		$	7,708,074
Adjustments:
Goodwill		(7,927	)		(7,927	)		(161,904	)		(161,904	)		(161,904	)
Other intangible assets, net		(10,362	)		(11,189	)		(12,100	)		(13,052	)		(14,003	)
Tangible assets	$	7,089,589		$	7,265,688		$	7,332,805		$	7,529,233		$	7,532,167

Common Shares Outstanding		21,515,138			21,503,036			21,494,485			21,393,905			21,377,215

Tangible Common Equity to Tangible Assets		6.27	%		6.08	%		5.81	%		6.45	%		5.98	%
Tangible Book Value Per Share	$	20.68		$	20.54		$	19.83		$	22.70		$	21.07

The MIL Network –

July 25, 2025

MIL-OSI: Midland States Bancorp, Inc. Announces 2025 Second Quarter Results

Source: GlobeNewswire (MIL-OSI)

EFFINGHAM, Ill., July 24, 2025 (GLOBE NEWSWIRE) — Midland States Bancorp, Inc. (Nasdaq: MSBI) (the “Company”) today reported net income available to common shareholders of $9.8 million, or $0.44 per diluted share, for the second quarter of 2025, compared to net income available to common shareholders of $23.5 million, or $1.06 per diluted share, for the second quarter of 2024.

This also compares to a net loss of $143.2 million, or $6.58 per diluted share, for the first quarter of 2025, which included impairment of goodwill of $154.0 million.

2025 Second Quarter Results

Net income available to common shareholders of $9.8 million, or $0.44 per diluted share, for the second quarter of 2025
Adjusted earnings of $9.8 million, or $0.44 per diluted share, compared to $10.8 million, or $0.49 per diluted share, in prior quarter
Pre-provision net revenue of $32.2 million, or $1.48 per diluted share, for the second quarter of 2025 compared to $27.0 million, or $1.24 per diluted share, for the first quarter of 2025
Net interest margin of 3.56%, compared to 3.49% in prior quarter
Nonperforming assets to total assets of 1.56%, compared to 2.08% in prior quarter
Total capital to risk-weighted assets of 14.50% and common equity tier 1 capital of 9.02%

Discussion of Outlook; President & Chief Executive Officer, Jeffrey G. Ludwig:

“Second quarter marked a notable step in returning Midland to a more normalized operating environment, with progress on several strategic initiatives ranging from growing our community bank to further improving our credit quality. Capital levels increased quarter-over-quarter, and we continue to target growing our common equity tier 1 capital ratio to our target of 10.0%.

During the quarter, we had limited new substandard or nonperforming loans identified, and importantly saw our non-performing assets decrease to $111 million, or 1.56% of total assets, versus $151 million, or 2.08% of total assets in the first quarter. After quarter-end, the bank successfully exited two larger non-performing relationships in July totaling $29 million, which all else equal would bring our non-performing asset ratio down another 41 basis points. Tighter underwriting standards in our equipment finance and specialty finance portfolios have already begun to meaningfully reduce our exposure to these higher-risk portfolios. In addition, we completed the previously announced sale of our GreenSky loans in April further improving our capital and liquidity.

Profitability trends were also favorable in the second quarter, with net interest margin expanding 7 basis points to 3.56%, pre-provision net revenue growing to $32.2 million, and strong contribution from our wealth management platform. We expect further improvement in profitability over the balance of 2025.”

Key Points for Second Quarter and Outlook

Acceleration of Credit Clean-up; Tightened Underwriting Standards

Substandard accruing loans and nonperforming loans decreased to $58.5 million and $109.5 million at June 30, 2025, respectively. No significant new substandard or nonperforming loans were identified during the quarter.
Net charge-offs were $29.9 million for the quarter, including:
- $13.9 million of charge-offs in our specialty finance portfolio, of which $10.2 million was specifically reserved for in a prior quarter
- $4.7 million of fully reimbursed charge-offs related to our third party lending programs
- $3.9 million of charge-offs in our equipment finance portfolio as we continue to see credit issues primarily in the trucking industry
Provision for credit losses on loans was $17.4 million for the second quarter of 2025, primarily as a result of continued trends in the equipment finance portfolio.
Allowance for credit losses on loans was $92.7 million, or 1.83% of total loans.

The table below summarizes certain information regarding the Company’s loan portfolio asset quality as of June 30, 2025.

	As of and for the Three Months Ended
(dollars in thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2025			2025			2024			2024			2024
Asset Quality
Loans 30-89 days past due	$	40,959		$	48,221		$	43,681		$	55,329		$	54,045
Nonperforming loans		109,512			145,690			150,907			114,556			112,124
Nonperforming assets		111,174			151,264			157,409			126,771			123,774
Substandard accruing loans		58,478			77,620			84,058			167,549			135,555
Net charge-offs		29,854			16,878			112,776			22,302			13,883
Loans 30-89 days past due to total loans		0.81	%		0.96	%		0.85	%		0.97	%		0.93	%
Nonperforming loans to total loans		2.16	%		2.90	%		2.92	%		2.00	%		1.92	%
Nonperforming assets to total assets		1.56	%		2.08	%		2.10	%		1.65	%		1.61	%
Allowance for credit losses to total loans		1.83	%		2.10	%		2.15	%		2.64	%		2.67	%
Allowance for credit losses to nonperforming loans		84.64	%		72.19	%		73.69	%		131.87	%		138.63	%
Net charge-offs to average loans		2.34	%		1.35	%		7.94	%		1.53	%		0.94	%

Solid Growth Trends in Community Bank & Wealth Management

Total loans at June 30, 2025 were $5.06 billion, an increase of $46.6 million from March 31, 2025. Key changes in the loan portfolio were as follows:
- Loans originated by our Community Bank increased $58.9 million, or 1.8%, from March 31, 2025. Pipelines remain strong and we continued to add to our sales teams in the second quarter.
- Non-core loans originated through third-party programs increased $212.8 million from March 31, 2025, as a result of the financing of the sale of the GreenSky portfolio.
- We continue to pursue an intentional decrease in our Specialty Finance loan portfolio, as we tighten credit standards. Balances in this loan portfolio decreased $173.3 million during the quarter.
- Equipment finance portfolio balances declined $51.8 million during the quarter as we continue to reduce the overall balances in this unit and tighten underwriting standards.
Total deposits were $5.95 billion at June 30, 2025, an increase of $10.5 million from March 31, 2025. The increase in deposits reflects the following:
- Commercial and public fund deposits increased $70.5 million and $127.8 million, respectively, in the quarter.
- Noninterest-bearing deposits decreased $16.5 million in the quarter.
- Retail and servicing deposits decreased $34.7 million and $56.9 million, respectively, in the quarter.
- Brokered deposits, including both money market and time deposits, decreased by $109.4 million.
- Servicing deposits decreased $284.4 million in July 2025 due to the acquisition of one of our servicing customers, expected to positively impact future margin.
Wealth Management revenue totaled $7.4 million in the second quarter of 2025. Assets under administration were $4.18 billion at June 30, 2025. The Company added three new sales positions in the second quarter of 2025 and continues to experience strong pipelines.

Net Interest Margin

Net interest margin was 3.56%, up 7 basis points compared to the first quarter, and we saw a continued decline in the cost of funding. Rate cuts enacted by the Federal Reserve Bank in late 2024 continue to result in a lower cost of deposits for the Company, which fell to 2.19% in the second quarter of 2025.

The following table summarizes certain factors affecting the Company’s net interest margin for the second quarter of 2025.

	For the Three Months Ended
(dollars in thousands)	June 30, 2025						March 31, 2025						June 30, 2024
Interest-earning assets	Average Balance		Interest & Fees		Yield/ Rate		Average Balance		Interest & Fees		Yield/ Rate		Average Balance		Interest & Fees		Yield/ Rate
Cash and cash equivalents	$	67,326	$	716	4.27	%	$	68,671	$	718	4.24	%	$	65,250	$	875	5.40	%
Investment securities⁽¹⁾		1,367,180		17,164	5.04			1,311,887		15,517	4.80			1,098,452		12,805	4.69
Loans⁽¹⁾⁽²⁾		5,123,558		79,240	6.20			5,057,394		78,118	6.26			5,915,523		92,581	6.29
Loans held for sale		44,642		377	3.39			326,348		4,563	5.67			4,910		84	6.84
Nonmarketable equity securities		38,803		694	7.17			35,614		647	7.37			44,216		963	8.76
Total interest-earning assets		6,641,509		98,191	5.93			6,799,914		99,563	5.94			7,128,351		107,308	6.05
Noninterest-earning assets		513,801						667,940						669,370
Total assets	$	7,155,310					$	7,467,854					$	7,797,721

Interest-Bearing Liabilities
Interest-bearing deposits	$	4,845,609	$	32,290	2.67	%	$	5,074,007	$	34,615	2.77	%	$	5,101,365	$	39,476	3.11	%
Short-term borrowings		60,117		573	3.82			73,767		700	3.85			30,449		308	4.07
FHLB advances & other borrowings		363,505		3,766	4.16			299,578		3,163	4.28			500,758		5,836	4.69
Subordinated debt		77,757		1,394	7.19			77,752		1,387	7.23			93,090		1,265	5.47
Trust preferred debentures		51,439		1,206	9.40			51,283		1,200	9.49			50,921		1,358	10.73
Total interest-bearing liabilities		5,398,427		39,229	2.91			5,576,387		41,065	2.99			5,776,583		48,243	3.36
Noninterest-bearing deposits		1,075,945						1,052,181						1,132,451
Other noninterest-bearing liabilities		108,819						123,613						104,841
Shareholders’ equity		572,119						715,673						783,846
Total liabilities and shareholder’s equity	$	7,155,310					$	7,467,854					$	7,797,721

Net Interest Margin			$	58,962	3.56	%			$	58,498	3.49	%			$	59,065	3.33	%

Cost of Deposits					2.19	%					2.29	%					2.55	%

(1) Interest income and average rates for tax-exempt loans and investment securities are presented on a tax-equivalent basis, assuming a federal income tax rate of 21%. Tax-equivalent adjustments totaled $0.3 million, $0.2 million and $0.2 million for the three months ended June 30, 2025, March 31, 2025 and June 30, 2024, respectively.

(2) Average loan balances include nonaccrual loans. Interest income on loans includes amortization of deferred loan fees, net of deferred loan costs.

Trends in Noninterest Income and Expense

Noninterest income was $23.5 million for the second quarter of 2025, compared to $17.8 million for the first quarter of 2025. Noninterest income for the second quarter of 2025 included credit enhancement income of $3.8 million, primarily related to an increase in charge-offs in our third-party loan origination and servicing program which were fully reimbursed by our program sponsor.
Noninterest expense was $50.0 million for the second quarter of 2025, compared to $203.0 million for the first quarter of 2025, which included goodwill impairment of $154.0 million. The Company continues to experience higher levels of professional services, legal fees and other expenses related to loan collections and the restatement of our financial statements.

Second Quarter 2025 Financial Highlights and Key Performance Indicators (KPIs):

	As of and for the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Return on average assets		0.67	%		(7.66	)%		(1.59	)%		1.05	%		1.33	%
Pre-provision net revenue to average assets⁽¹⁾		1.81	%		1.47	%		1.83	%		2.21	%		2.07	%
Net interest margin		3.56	%		3.49	%		3.34	%		3.34	%		3.33	%
Efficiency ratio ⁽¹⁾		60.60	%		64.29	%		62.31	%		53.61	%		55.79	%
Noninterest expense to average assets		2.80	%		11.02	%		3.04	%		2.56	%		2.62	%
Net charge-offs to average loans		2.34	%		1.35	%		7.94	%		1.53	%		0.94	%
Tangible book value per share at period end ⁽¹⁾	$	20.68		$	20.54		$	19.83		$	22.70		$	21.07
Diluted earnings (loss) per common share	$	0.44		$	(6.58	)	$	(1.52	)	$	0.83		$	1.06
Common shares outstanding at period end		21,515,138			21,503,036			21,494,485			21,393,905			21,377,215
Trust assets under administration	$	4,181,180		$	4,101,414		$	4,153,080		$	4,268,539		$	3,996,175

(1) Non-GAAP financial measures. Refer to page 10 for a reconciliation to the comparable GAAP financial measures.

Capital

At June 30, 2025, Midland States Bank and the Company exceeded all regulatory capital requirements under Basel III, and Midland States Bank met the qualifications to be a ‘‘well-capitalized’’ financial institution, as summarized in the following table:

	As of June 30, 2025
	Midland States Bank	Midland States Bancorp, Inc.	Minimum Regulatory Requirements ⁽²⁾
Total capital to risk-weighted assets	13.74%	14.50%	10.50%
Tier 1 capital to risk-weighted assets	12.49%	12.07%	8.50%
Common equity Tier 1 capital to risk-weighted assets	12.49%	9.02%	7.00%
Tier 1 leverage ratio	9.93%	9.59%	4.00%
Tangible common equity to tangible assets ⁽¹⁾	N/A	6.27%	N/A

(1) A non-GAAP financial measure. Refer to page 10 for a reconciliation to the comparable GAAP financial measure.
(2) Includes the capital conservation buffer of 2.5%, as applicable.

About Midland States Bancorp, Inc.

Midland States Bancorp, Inc. is a community-based financial holding company headquartered in Effingham, Illinois, and is the sole shareholder of Midland States Bank. As of June 30, 2025, the Company had total assets of approximately $7.11 billion, and its Wealth Management Group had assets under administration of approximately $4.18 billion. The Company provides a full range of commercial and consumer banking products and services and business equipment financing, merchant credit card services, trust and investment management, insurance and financial planning services. For additional information, visit https://www.midlandsb.com/ or https://www.linkedin.com/company/midland-states-bank.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP.

These non-GAAP financial measures include “Pre-provision net revenue,” “Pre-provision net revenue per diluted share,” “Pre-provision net revenue to average assets,” “Efficiency ratio,” “Tangible common equity to tangible assets,” and “Tangible book value per share.” The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s funding profile and profitability. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures. Not all companies use the same calculation of these measures; therefore, the measures in this press release may not be comparable to other similarly titled measures as presented by other companies.

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release includes “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s plans, objectives, future performance, goals and future earnings levels, including currently anticipated levels of noninterest income and operating expenses. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions; the impact of federal trade policy, inflation, increased deposit volatility and potential regulatory developments; changes in the financial markets; changes in business plans as circumstances warrant; changes to U.S. tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “will,” “propose,” “may,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “continue,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

CONTACTS:
Jeffrey G. Ludwig, President and CEO, at jludwig@midlandsb.com or (217) 342-7321
Eric T. Lemke, Chief Financial Officer, at elemke@midlandsb.com or (217) 342-7321


MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited)

	As of
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2025			2025			2024			2024			2024
Assets
Cash and cash equivalents	$	176,587		$	102,006		$	114,766		$	121,873		$	124,646
Investment securities		1,354,652			1,368,405			1,212,366			1,216,795			1,099,654
Loans		5,064,695			5,018,053			5,167,574			5,728,237			5,829,057
Allowance for credit losses on loans		(92,690	)		(105,176	)		(111,204	)		(151,067	)		(155,443	)
Total loans, net		4,972,005			4,912,877			5,056,370			5,577,170			5,673,614
Loans held for sale		7,899			287,821			344,947			8,001			5,555
Premises and equipment, net		86,240			86,719			85,710			84,672			83,040
Other real estate owned		393			4,183			4,941			8,646			8,304
Loan servicing rights, at lower of cost or fair value		16,720			17,278			17,842			18,400			18,902
Goodwill		7,927			7,927			161,904			161,904			161,904
Other intangible assets, net		10,362			11,189			12,100			13,052			14,003
Company-owned life insurance		214,392			212,336			211,168			209,193			207,211
Credit enhancement asset		5,800			5,615			16,804			20,633			18,202
Other assets		254,901			268,448			267,891			263,850			293,039
Total assets	$	7,107,878		$	7,284,804		$	7,506,809		$	7,704,189		$	7,708,074

Liabilities and Shareholders’ Equity
Noninterest-bearing demand deposits	$	1,074,212		$	1,090,707		$	1,055,564		$	1,050,617		$	1,108,521
Interest-bearing deposits		4,872,707			4,845,727			5,141,679			5,206,219			5,009,502
Total deposits		5,946,919			5,936,434			6,197,243			6,256,836			6,118,023
Short-term borrowings		8,654			40,224			87,499			13,849			7,208
FHLB advances and other borrowings		345,000			498,000			258,000			425,000			600,000
Subordinated debt		77,759			77,754			77,749			82,744			91,656
Trust preferred debentures		51,518			51,358			51,205			51,058			50,921
Other liabilities		104,323			109,597			124,266			103,481			103,487
Total liabilities		6,534,173			6,713,367			6,795,962			6,932,968			6,971,295
Total shareholders’ equity		573,705			571,437			710,847			771,221			736,779
Total liabilities and shareholders’ equity	$	7,107,878		$	7,284,804		$	7,506,809		$	7,704,189		$	7,708,074

MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited) (continued)

	For the Three Months Ended
	June 30,		March 31,			December 31,			September 30,			June 30,
(dollars in thousands, except per share data)	2025			2025			2024			2024			2024
Net interest income:
Interest income	$	97,924	$	99,355		$	104,470		$	108,994		$	107,138
Interest expense		39,229		41,065			45,900			49,884			48,243
Net interest income		58,695		58,290			58,570			59,110			58,895
Provision for credit losses:
Provision for credit losses on loans		17,369		10,850			74,183			17,925			8,482
Recapture of credit losses on unfunded commitments		—		—			—			—			(200	)
Total provision for credit losses		17,369		10,850			74,183			17,925			8,282
Net interest income after provision for credit losses		41,326		47,440			(15,613	)		41,185			50,613
Noninterest income:
Wealth management revenue		7,379		7,350			7,660			7,104			6,801
Service charges on deposit accounts		3,351		3,305			3,506			3,411			3,121
Interchange revenue		3,463		3,151			3,528			3,506			3,563
Residential mortgage banking revenue		756		676			637			697			557
Income on company-owned life insurance		2,068		2,334			1,975			1,981			1,925
Loss on sales of investment securities, net		—		—			(34	)		(44	)		(152	)
Credit enhancement income (loss)		3,848		(578	)		15,810			14,206			14,328
Other income		2,669		1,525			2,289			2,684			1,841
Total noninterest income		23,534		17,763			35,371			33,545			31,984
Noninterest expense:
Salaries and employee benefits		25,685		26,416			22,283			24,382			22,872
Occupancy and equipment		4,166		4,498			4,286			4,393			3,964
Data processing		7,035		6,919			7,278			6,955			7,205
Professional services		2,792		2,741			1,580			1,744			2,243
Impairment on goodwill		—		153,977			—			—			—
Amortization of intangible assets		827		911			952			951			1,016
Impairment on leased assets and surrendered assets		—		—			7,601			—			—
FDIC insurance		1,422		1,463			1,383			1,402			1,219
Other expense		8,065		6,080			13,336			9,937			12,265
Total noninterest expense		49,992		203,005			58,699			49,764			50,784
Income (loss) before income taxes		14,868		(137,802	)		(38,941	)		24,966			31,813
Income tax expense (benefit)		2,844		3,172			(8,172	)		4,535			6,094
Net income (loss)		12,024		(140,974	)		(30,769	)		20,431			25,719
Preferred stock dividends		2,228		2,228			2,228			2,229			2,228
Net income (loss) available to common shareholders	$	9,796	$	(143,202	)	$	(32,997	)	$	18,202		$	23,491

Basic earnings (loss) per common share	$	0.44	$	(6.58	)	$	(1.52	)	$	0.83		$	1.06
Diluted earnings (loss) per common share	$	0.44	$	(6.58	)	$	(1.52	)	$	0.83		$	1.06
Weighted average common shares outstanding		21,820,190		21,795,570			21,748,428			21,675,818			21,731,195
Weighted average diluted common shares outstanding		21,820,190		21,795,570			21,753,711			21,678,242			21,734,849

MIDLAND STATES BANCORP, INC.
CONSOLIDATED FINANCIAL SUMMARY (unaudited)(continued)

	As of
	June 30,		March 31,		December 31,		September 30,		June 30,
(dollars in thousands)	2025		2025		2024		2024		2024
Loan Portfolio Mix
Commercial loans	$	1,178,792	$	879,286	$	934,847	$	879,590	$	955,667
Equipment finance loans		364,526		390,276		416,970		442,552		461,409
Equipment finance leases		347,155		373,168		391,390		417,531		428,659
Commercial FHA warehouse lines		1,068		—		8,004		50,198		—
Total commercial loans and leases		1,891,541		1,642,730		1,751,211		1,789,871		1,845,735
Commercial real estate		2,412,761		2,592,325		2,591,664		2,510,472		2,421,505
Construction and land development		258,729		264,966		299,842		422,253		476,528
Residential real estate		361,261		373,095		380,557		378,658		378,393
Consumer		140,403		144,937		144,300		626,983		706,896
Total loans	$	5,064,695	$	5,018,053	$	5,167,574	$	5,728,237	$	5,829,057

Loan Portfolio Segment
Regions
Eastern	$	901,848	$	897,792	$	899,611	$	902,993	$	884,343
Northern		753,590		747,028		714,562		730,752		724,782
Southern		778,124		711,787		720,188		694,810		699,893
St. Louis		884,685		902,743		868,190		850,327		825,291
Total Community Bank		3,318,247		3,259,350		3,202,551		3,178,882		3,134,309
Specialty finance		701,244		874,567		1,038,238		1,018,961		1,107,508
Equipment finance		711,681		763,444		808,359		860,083		890,068
Non-core loan program and other⁽¹⁾		333,523		120,692		118,426		670,311		697,172
Total loans	$	5,064,695	$	5,018,053	$	5,167,574	$	5,728,237	$	5,829,057

Deposit Portfolio Mix
Noninterest-bearing demand	$	1,074,212	$	1,090,707	$	1,055,564	$	1,050,617	$	1,108,521
Interest-bearing:
Checking		2,180,717		2,161,282		2,378,256		2,389,970		2,343,533
Money market		1,216,357		1,154,403		1,173,630		1,187,139		1,143,668
Savings		511,470		522,663		507,305		510,260		538,462
Time		818,813		818,732		822,981		849,413		852,415
Brokered time		145,350		188,647		259,507		269,437		131,424
Total deposits	$	5,946,919	$	5,936,434	$	6,197,243	$	6,256,836	$	6,118,023

Deposit Portfolio by Channel
Retail	$	2,811,838	$	2,846,494	$	2,749,650	$	2,695,077	$	2,742,494
Commercial		1,145,369		1,074,837		1,209,815		1,218,657		1,217,068
Public Funds		618,172		490,374		505,912		574,704		568,889
Wealth & Trust		304,626		301,251		340,615		332,242		298,659
Servicing		785,659		842,567		896,436		958,662		931,892
Brokered Deposits		248,707		358,063		473,451		390,558		238,708
Other		32,548		22,848		21,364		86,936		120,313
Total deposits	$	5,946,919	$	5,936,434	$	6,197,243	$	6,256,836	$	6,118,023

(1) Non-core loan programs refer to loan portfolios originated through third parties or capital markets, including loans to finance the sale of the GreenSky portfolio.


MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)

Adjusted Earnings Reconciliation

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands, expect per share data)		2025			2025			2024			2024			2024
Income (loss) before income tax (benefit) expense – GAAP	$	14,868		$	(137,802	)	$	(38,941	)	$	24,966		$	31,813
Adjustments to noninterest income:
Loss on sales of investment securities, net		—			—			34			44			152
Loss (gain) on repurchase of subordinated debt		—			—			13			(77	)		(167	)
Total adjustments to noninterest income		—			—			47			(33	)		(15	)
Adjustments to noninterest expense:
Impairment on goodwill		—			(153,977	)		—			—			—
Total adjustments to noninterest expense		—			(153,977	)		—			—			—
Adjusted earnings (loss) pre tax – non-GAAP		14,868			16,175			(38,894	)		24,933			31,798
Adjusted earnings (loss) tax (benefit) expense		2,844			3,172			(8,159	)		4,526			6,090
Adjusted earnings (loss) – non-GAAP		12,024			13,003			(30,735	)		20,407			25,708
Preferred stock dividends		2,228			2,228			2,228			2,229			2,228
Adjusted earnings (loss) available to common shareholders	$	9,796		$	10,775		$	(32,963	)	$	18,178		$	23,480
Adjusted diluted earnings (loss) per common share	$	0.44		$	0.49		$	(1.52	)	$	0.82		$	1.06

Pre-Provision Net Revenue Reconciliation

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2025			2025			2024			2024			2024
Income (loss) before income taxes	$	14,868		$	(137,802	)	$	(38,941	)	$	24,966		$	31,813
Provision for credit losses		17,369			10,850			74,183			17,925			8,282
Impairment on goodwill		—			153,977			—			—			—
Pre-provision net revenue	$	32,237		$	27,025		$	35,242		$	42,891		$	40,095
Pre-provision net revenue per diluted share	$	1.48		$	1.24		$	1.62		$	1.98		$	1.84
Pre-provision net revenue to average assets		1.81	%		1.47	%		1.83	%		2.21	%		2.07	%

MIDLAND STATES BANCORP, INC.
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES (unaudited)

Efficiency Ratio Reconciliation

	For the Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands)		2025			2025			2024			2024			2024
Noninterest expense – GAAP	$	49,992		$	203,005		$	58,699		$	49,764		$	50,784
Impairment on goodwill		—			(153,977	)		—			—			—
Adjusted noninterest expense	$	49,992		$	49,028		$	58,699		$	49,764		$	50,784

Net interest income – GAAP	$	58,695		$	58,290		$	58,570		$	59,110		$	58,895
Effect of tax-exempt income		267			208			220			205			170
Adjusted net interest income		58,962			58,498			58,790			59,315			59,065

Noninterest income – GAAP		23,534			17,763			35,371			33,545			31,984
Loss on sales of investment securities, net		—			—			34			44			152
Loss (gain) on repurchase of subordinated debt		—			—			13			(77	)		(167	)
Adjusted noninterest income		23,534			17,763			35,418			33,512			31,969

Adjusted total revenue	$	82,496		$	76,261		$	94,208		$	92,827		$	91,034

Efficiency ratio		60.60	%		64.29	%		62.31	%		53.61	%		55.79	%

Tangible Common Equity to Tangible Assets Ratio and Tangible Book Value Per Share

	As of
	June 30,			March 31,			December 31,			September 30,			June 30,
(dollars in thousands, except per share data)		2025			2025			2024			2024			2024
Shareholders’ Equity to Tangible Common Equity
Total shareholders’ equity—GAAP	$	573,705		$	571,437		$	710,847		$	771,221		$	736,779
Adjustments:
Preferred Stock		(110,548	)		(110,548	)		(110,548	)		(110,548	)		(110,548	)
Goodwill		(7,927	)		(7,927	)		(161,904	)		(161,904	)		(161,904	)
Other intangible assets, net		(10,362	)		(11,189	)		(12,100	)		(13,052	)		(14,003	)
Tangible common equity		444,868			441,773			426,295			485,717			450,324

Total Assets to Tangible Assets:
Total assets—GAAP	$	7,107,878		$	7,284,804		$	7,506,809		$	7,704,189		$	7,708,074
Adjustments:
Goodwill		(7,927	)		(7,927	)		(161,904	)		(161,904	)		(161,904	)
Other intangible assets, net		(10,362	)		(11,189	)		(12,100	)		(13,052	)		(14,003	)
Tangible assets	$	7,089,589		$	7,265,688		$	7,332,805		$	7,529,233		$	7,532,167

Common Shares Outstanding		21,515,138			21,503,036			21,494,485			21,393,905			21,377,215

Tangible Common Equity to Tangible Assets		6.27	%		6.08	%		5.81	%		6.45	%		5.98	%
Tangible Book Value Per Share	$	20.68		$	20.54		$	19.83		$	22.70		$	21.07

The MIL Network –

July 25, 2025

MIL-OSI: Main Street Financial Services Corp. Announces Earnings for Second Quarter of 2025

Source: GlobeNewswire (MIL-OSI)

Business Highlights

Core net income (non-GAAP) for the second quarter of 2025 totaled $4.1 million, or $0.52 per common share
Deposit growth of $52.9 million, or 17.9% annualized, for the quarter ended June 30, 2025
Loan growth of $29.8 million, or 10.5% annualized, for the quarter ended June 30, 2025
Continued reduction of wholesale funding by $15 million during the second quarter of 2025. The wholesale funding balance decreased to $54 million, or 3.7% of assets, as of June 30, 2025.
Received regulatory approval to open retail branch office in St. Clairsville, Ohio, with an expected opening in Q3 2025
Declared cash dividend of $0.14 per share on July 11, 2025

WOOSTER, Ohio, July 24, 2025 (GLOBE NEWSWIRE) — Main Street Financial Services Corp. (OTCQX: MSWV), (the “Company”), the holding company parent of Main Street Bank Corp. reported a net income of $3.7 million, or $0.47 per common share, for the three months ended June 30, 2025. Core net income, which excludes nonrecurring items and represents the Company’s earnings from ongoing operations, was $4.1 million, or $0.52 per common share for the three months ended June 30, 2025. Core return on average equity and core return on average assets for the second quarter of 2025 were 14.94% and 1.14%, compared to 9.56% and 0.77%, for the second quarter of 2024.

The Company announced a merger of equals transaction with Wayne Savings Bancshares, Inc. (“Legacy Wayne”) on February 23, 2023. On May 31, 2024 (the “Merger Date”), the Company completed the transaction, forming a financial holding company with assets of $1.4 billion. On the Merger Date, Legacy Wayne merged with and into Main Street, with Main Street surviving the merger (the “Merger”). Immediately following the Merger, Main Street’s wholly owned bank subsidiary, Main Street Bank Corp., merged with and into Wayne Savings Community Bank, with Wayne Savings Community Bank surviving the merger. Upon completion of the Merger, Wayne Savings Community Bank was renamed Main Street Bank Corp.

The Merger was accounted for as a reverse merger using the acquisition method of accounting, therefore, Legacy Wayne was deemed the acquirer for financial reporting purposes, even though Main Street was the legal acquirer. Accordingly, Legacy Wayne’s historical financial statements are the historical financial statements of the combined company for all periods before the Merger Date. Our consolidated statements of income for the quarters ended June 30, 2024 and forward, include the results from Main Street on and after May 31, 2024. Results for periods before May 31, 2024, reflect only those of Legacy Wayne and do not include the consolidated statements of income of Main Street. Accordingly, comparisons of our results for the quarter ended June 30, 2025, with those of prior periods may not be meaningful. The number of shares issued and outstanding, earnings per share, dividends paid and all references to share quantities of Main Street have been retrospectively adjusted to reflect the equivalent number of shares issued in the Merger.

Mark Witmer, Chairman, President and CEO commented “Our core earnings this quarter highlight the strength of our banking franchise and the continued confidence of our customers. We remain focused on relationship-driven banking, disciplined risk management, and delivering long-term value to our shareholders.”

Second Quarter 2025 Financial Results

Net interest income was $12.5 million for the quarter ended June 30, 2025, an increase of 95% from $6.4 million for the quarter ended June 30, 2024. The net interest margin of 3.68% for the second quarter of 2025 increased 99 basis points from 2.69% for the second quarter of 2024. Loan yields were 6.48% for the quarter ended June 30, 2025, an increase of 70 basis points when compared to 5.78% for the quarter ended June 30, 2024. During the second quarter of 2025, $51.6 million of the existing loan portfolio repriced and the bank funded $78.1 million in term loans and lines of credit at current market rates. Investment yields increased 176 basis points to 4.02% as of June 30, 2025, compared to the quarter ended June 30, 2024. The cost of funds for the second quarter of 2025 was 2.53%, a decrease of 16 basis points when compared to the second quarter of 2024. The cost of funds is impacted by the acquisition of new deposit accounts in the local market at rates lower than wholesale funding, such as FHLB advances. The cost of deposits was 2.37% for the quarter ended June 30, 2025, a 13 basis point increase when compared to 2.24% for the quarter ended June 30, 2024. The cost of borrowings for the quarter ended June 30, 2025 totaled 4.84%, a decrease of 109 basis points when compared to the quarter ended June 30, 2024.

A provision for credit losses and unfunded commitments of $374,000 was recorded for the quarter ended June 30, 2025. During the quarter, the Company recognized $148,000 in charge-offs and $114,000 in recoveries, reflecting relatively stable asset quality.

Noninterest income totaled $0.9 million for the quarter ended June 30, 2025, an increase of $190,000, or 26.5%, when compared to the quarter ended June 30, 2024. The increase in noninterest income is primarily attributed to interchange fees and service charges generated from the acquired deposit accounts.

Noninterest expense totaled $8.3 million for the quarter ended June 30, 2025, an increase of $1.6 million when compared to the quarter ended June 30, 2024. The increase reflects a full quarter of combined expenses after the merger. The Company incurred approximately $0.5 million in one-time termination expenses. These costs are nonrecurring in nature and are not indicative of ongoing operational trends. No further expenses related to this matter are anticipated.

Provision for income taxes for the quarter ended June 30, 2025, was $1.0 million, reflecting an effective tax rate of 21%.

June 30, 2025 Financial Condition

At June 30, 2025, the Company had total assets of $1.45 billion with net loan balances totaling $1.16 billion. Loan balances grew by $29.8 million, or 17.9% annualized, during the second quarter of 2025. The increase is primarily attributed to $33.6 million growth in the commercial loan portfolio.

The allowance for credit losses was $12.4 million at June 30, 2025, compared to $11.8 million at December 31, 2024. The allowance for credit losses as a percent of total loans was 1.06% for June 30, 2025 and 1.05% for December 31, 2024. The allowance for credit losses and the related provision for credit losses is based on management’s judgment and evaluation of the loan portfolio. Management believes the current allowance for credit losses is adequate, however, changing economic and other conditions may require future adjustments to the allowance for credit losses.

Total nonperforming loans (NPLs) was $4.7 million at June 30, 2025, a decrease from $6.1 million at December 31, 2024. The NPL to net loan receivable ratio was 0.41% as of June 30, 2025. Past due loan balances of 30 days and more decreased from $13.8 million at December 31, 2024, to $5.9 million, or 0.51% of net loans outstanding, at June 30, 2025.

Improvement in Asset Quality Since Merger Announcement: The combined level of classified loans for Legacy Wayne and Main Street was $24.4 million as of December 31, 2022. Since the merger announcement on February 23, 2023, the management teams of both Main Street and Wayne invested a great deal of time ensuring our combined organization utilizes strong underwriting standards and proactively monitors credit quality. Main Street sold approximately $15.2 million of loans in August 2023 and April 2024, of which approximately $12.7 million were classified loans. As of June 30, 2025, the resultant Company has $11.3 million of classified loans.

Total liabilities was $1.33 billion at June 30, 2025 with deposits totaling $1.24 billion and wholesale funding totaling $54.0 million. Deposits grew by $52.9 million, or 17.9% annualized, during the second quarter of 2025, mainly attributed to growth from Maximize Money Market accounts and the Short-Term Relationship Certificates of Deposits. The Company primarily utilizes FHLB advances as the primary source of wholesale funding due to their accessibility and alignment with prevailing market rates. During the second quarter of 2025, the Company reduced the reliance on FHLB advances by $10 million.

Total stockholders’ equity was $116.6 million at June 30, 2025, an increase of $5.9 million when compared to the December 31, 2024 balance. Total stockholders’ equity increased during the second quarter of 2025 primarily from net income of $3.7 million, partially offset by dividends of $1.1 million and a decrease in accumulated other comprehensive income of $1.0 million.

Main Street Financial Services Corp. is a holding company headquartered in Wooster, Ohio. Its primary subsidiary, Main Street Bank Corp. was founded in 1899 and provides full-service banking, commercial lending, and mortgage services across its branch infrastructure. Today, Main Street Bank Corp. operates 19 branch locations in Wooster, Ohio, Wheeling, West Virginia and other surrounding communities in Ohio and West Virginia. Additional information about Main Street Bank Corp. is available at www.mymainstreetbank.bank.

Non-GAAP Disclosure
This press release includes disclosures of the Company’s return on average equity, return on average assets, net income, and efficiency ratios which exclude amounts the Company views as unrelated to its normalized operations, including securities gains/losses, acquisition costs, restructuring costs, legal settlements, and system conversion costs. The financial measures are not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flow that excludes or includes amounts that are required to be disclosed by GAAP. The Company believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and the Company’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP.

Forward-Looking–Statements
This release contains forward-looking statements that are not historical facts and that are intended to be “forward-looking statements” as that term is defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions and other statements contained in this release that are not historical facts and pertain to the Company’s future operating results. When used in this release, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions are generally intended to identify forward-looking statements. Actual results may differ materially from the results discussed in these forward-looking statements, because such statements are inherently subject to significant assumptions, risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. These include but are not limited to: the possibility of adverse economic developments that may, among other things, increase default and delinquency risks in the Company’s loan portfolios; shifts in interest rates; shifts in the rate of inflation; shifts in the demand for the Company’s loan and other products; unforeseen increases in costs and expenses; lower-than-expected revenue or cost savings in connection with acquisitions; changes in accounting policies; changes in the monetary and fiscal policies of the federal government; and changes in laws, regulations and the competitive environment. Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information:
Matthew Hartzler
Executive Vice President, Chief Financial Officer
(330) 264-5767


MAIN STREET FINANCIAL SERVICES CORP.
Condensed Consolidated Balance Sheets
(Dollars in thousands, except share data – unaudited)
	June 30, 2025	December 31, 2024
ASSETS

Cash and cash equivalents	$ 52,381	$ 54,422
Securities, net (1)	158,189	163,819
Loans held for sale	168	–
Loans receivable, net	1,161,450	1,113,900
Federal Home Loan Bank stock	4,567	5,924
Premises & equipment, net	7,884	8,013
Bank-owned life insurance	22,036	22,155
Other assets	42,096	41,368
TOTAL ASSETS	$ 1,448,771	$ 1,409,601

LIABILITIES AND STOCKHOLDERS’ EQUITY

Deposit accounts	$ 1,237,600	$ 1,156,327
Other borrowings	28,238	28,399
Federal Home Loan Bank advances	54,000	100,000
Accrued interest payable and other liabilities	12,371	14,239
TOTAL LIABILITIES	1,332,209	1,298,965


Common stock (7,829,127 shares of $1.00 par value issued)	7,829	7,801
Additional paid-in capital	56,656	56,387
Retained earnings	62,479	57,356
Accumulated other comprehensive loss	(10,402)	(10,908)
TOTAL STOCKHOLDERS’ EQUITY	116,562	110,636

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,448,771	$ 1,409,601

(1) Includes available-for-sale and held-to-maturity classifications.
Note: The December 31, 2024 Condensed Consolidated Balance Sheet has been derived from the audited Consolidated Balance Sheet as of that date.


MAIN STREET FINANCIAL SERVICES CORP.
Condensed Consolidated Statements of Income
(Dollars in thousands, except share data – unaudited)


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

Interest income	$	20,698	$	12,572		$	40,096	$	22,266
Interest expense		8,241		6,185			16,114		10,826
Net interest income		12,457		6,387			23,982		11,440
Provision for credit losses		374		4,720			619		4,595
Net interest income after provision for credit losses		12,083		1,666			23,363		6,845
Non-interest income		906		716			1,725		1,394
Non-interest expense
Salaries and employee benefits		4,361		2,889			8,077		4,889
Net occupancy and equipment expense		1,405		823			2,880		1,505
Federal deposit insurance premiums		207		179			378		322
Franchise taxes		105		180			210		307
Advertising and marketing		190		150			360		218
Legal		164		180			247		313
Professional fees		365		1,163			724		1,293
ATM network		132		266			212		395
Auditing and accounting		132		121			308		193
Other		1,247		772			2,426		1,222
Total non-interest expense		8,308		6,723			15,822		10,657
Income (loss) before federal income taxes		4,681		(4,341	)		9,266		(2,418	)
Provision (benefit) for federal income taxes		1,002		(873	)		1,958		(489	)
Net income (loss)	$	3,679	$	(3,468	)	$	7,308	$	(1,929	)

Earnings (net loss) per share
Basic	$	0.47	$	(0.68	)	$	0.94	$	(0.28	)
Diluted	$	0.47	$	(0.67	)	$	0.93	$	(0.27	)


MAIN STREET FINANCIAL SERVICES CORP.
Selected Condensed Consolidated Financial Data
(Dollars in thousands, except share data – unaudited)

	Three Months Ended
	June			March			December			September
		2025			2025			2024			2024

Interest and dividend income	$	20,699		$	19,397		$	19,138		$	18,930
Interest expense		8,241			7,872			8,531			8,308
Net interest income		12,457			11,525			10,607			10,622
Provision for credit losses		374			245			79			109
Net interest income after
provision for credit losses		12,083			11,280			10,528			10,513
Non-interest income		906			819			1,165			1,600
Non-interest expense		8,308			7,514			7,950			7,863
Income before federal income taxes		4,681			4,585			3,744			4,251
Provision for federal income taxes		1,002			956			558			804
Net income	$	3,679		$	3,629		$	3,186		$	3,446

Earnings per share – basic	$	0.47		$	0.47		$	0.41		$	0.44
Earnings per share – diluted	$	0.47		$	0.47		$	0.41		$	0.44
Dividends per share	$	0.14		$	0.14		$	0.14		$	0.14
Return on average assets		1.03	%		1.03	%		0.90	%		1.00	%
Return on average equity		13.42	%		13.27	%		11.69	%		12.58	%
Shares outstanding at quarter end		7,829,137			7,801,011			7,801,011			7,801,011
Book value per share	$	14.89		$	14.73		$	14.18		$	14.27
Tangible equity per share	$	12.97		$	12.73		$	12.13		$	12.15
Return on common tangible equity		14.49	%		14.62	%		13.46	%		14.54	%

	Three Months Ended
	June			March			December			September
		2024			2024			2023			2023

Interest and dividend income	$	12,572		$	9,694		$	9,545		$	9,078
Interest expense		6,185			4,641			4,330			3,673
Net interest income		6,387			5,053			5,215			5,405
Provision (benefit) for credit losses		4,720			(126	)		4			138
Net interest income after
provision for credit losses		1,666			5,179			5,211			5,267
Non-interest income		716			678			1,017			691
Non-interest expense		6,723			3,934			3,748			3,733
Income (loss) before federal income taxes		(4,341	)		1,923			2,480			2,225
Provision (benefit) for federal income taxes		(873	)		384			443			452
Net income (loss)	$	(3,468	)	$	1,539		$	2,037		$	1,773

Earnings (loss) per share – basic	$	(0.68	)	$	0.40		$	0.53		$	0.46
Earnings (loss) per share – diluted	$	(0.67	)	$	0.40		$	0.53		$	0.46
Dividends per share	$	0.13		$	0.13		$	0.13		$	0.13
Return on average assets		(1.38	%)		0.76	%		1.02	%		0.91	%
Return on average equity		(17.16	%)		11.63	%		16.90	%		14.41	%
Shares outstanding at quarter end		7,787,055			3,840,575			3,839,702			3,837,609
Book value per share	$	13.60		$	13.81		$	13.80		$	12.40
Tangible equity per share	$	11.49		$	13.36		$	13.35		$	11.95
Return on common tangible equity		(15.51	%)		12.00	%		15.90	%		15.46	%


MAIN STREET FINANCIAL SERVICES CORP.
Non-GAAP reconciliation
(Dollars in thousands, except per share data – unaudited)

	For three months ended						For the six months ended
	June,						June,
		2025			2024			2025			2024

Net Income as reported – GAAP	$	3,679		$	(3,468	)	$	7,308		$	(1,929	)
Effect of merger related expenses (net of tax benefit)		–			5,399			–			5,573
Effect of termination expenses (net of tax benefit)		416			–			416			–
Net Income non-GAAP	$	4,095		$	1,931		$	7,724		$	3,645

Earnings per share – GAAP	$	0.47		$	(0.68	)	$	0.94		$	(0.43	)
Effect of merger related expenses		–			1.05			–			1.24
Effect of termination expenses		0.05			–			0.05			–
Earnings per share non-GAAP	$	0.52		$	0.38		$	0.99		$	0.81

Return on average assets – GAAP		1.03	%		-1.38	%		1.03	%		-0.43	%
Effect of merger related expenses		–			2.15	%		–			1.24	%
Effect of termination expenses		0.12	%		–			0.06	%		–
Return on average assets non-GAAP		1.14	%		0.77	%		1.09	%		0.81	%

Return on average equity – GAAP		13.42	%		-17.16	%		13.34	%		-6.24	%
Effect of merger related expenses		–			26.72	%		–			18.02	%
Effect of termination expenses		1.52	%		–			0.76	%		–
Return on average equity non-GAAP		14.94	%		9.56	%		14.10	%		11.78	%

Efficiency Ratio – GAAP		62.17	%		94.65	%		61.55	%		83.04	%
Effect of merger related expenses		–			-29.42	%		–			-18.00	%
Effect of termination expenses		-3.11	%		–			-1.62	%		–
Efficiency Ratio non-GAAP		59.06	%		65.23	%		59.93	%		65.04	%

The MIL Network –

July 25, 2025

MIL-Evening Report: Miles Franklin 2025: Siang Lu’s Ghost Cities is a haunting comedy about tyranny. Is it the funniest winner ever?

Source: The Conversation (Au and NZ) – By Joseph Steinberg, Forrest Foundation Postdoctoral Fellow, English & Literary Studies, The University of Western Australia

Siang Lu David Kelly/UQP

The Miles Franklin judges described Siang Lu’s Ghost Cities, winner of the 2025 award, as “a grand farce and a haunting meditation on diaspora”. To my mind, it is perhaps the funniest novel ever to have won the Miles Franklin. In the last decade, its closest competitor would be Melissa Lucashenko’s boisterous, brilliant Too Much Lip.

Turn the clock back a few more years, and it’d square off against the puerile humour of Tim Winton’s Cloudstreet, the zany folly of Peter Carey’s Oscar and Lucinda, and Thea Astley’s biting satire The Acolyte. It’d remain a strong contender even in such company.

Lu earned a reputation for satire with his first novel, The Whitewash, in which he lampooned the racial politics of the film industry. Ghost Cities extends this skit, while dialling it up to 11.

“Sitting within a tradition in Australian writing that explores failed expatriation and cultural fraud, Lu’s novel is also something strikingly new,” the judges said, praising its “absurdist bravura”.

A comedy of tyranny

Lu’s sense of humour relies on hyperbole. Over some 300 pages, the characters in Ghost Cities tie themselves in knots over a ludicrous series of edicts, demands and directives issued by a pair of dictators who grow crueller and more capricious with every chapter.

Ghost Cities is a comedy of tyranny in two plots, told via alternating chapters. One begins in a semi-recognisable Sydney, then relocates to the fictitious ghost city of Port Man Tou; the other is a fable set in China’s Imperial City and its labyrinths millennia ago.

Ghost Cities begins in the latter timeline, with the mock-heroic tale of Emperor Lu Huang Du’s ascension to the imperial throne and the beginning of his dictatorial rule. What defines his character, from the very first page, is his yawning ego; he yearns for an exceptional origin myth, a tale of patricide and regicide. The failure to fabricate myths of this kind later leads him to banish a trio of scholars to the Sixth Level of Hell and burn every book in the Imperial Library. What he wants is a hymn to his own “cunning, ruthless strategy and force of will”. But the truth is ignoble.

Emperors should not come to power through inaction. They should not do so by “gawping as their purple-faced fathers clawed and sputtered on what would later be determined to be an awkwardly lodged chicken bone”. They should not “wait, in lacklustre fealty, for that final breathless minute to expire”. They should certainly not then proceed to order the death of every chicken in the land, because of the deranged belief “their traitorous bones were conspiring against His Imperial bloodline”. And they would be well advised not then to issue an edict forbidding the “breeding, eating and harbouring of poultry”, which leads the sons of “a hundred fallen agrarians” to swear vengeance.

Perverse as he is, there is real pleasure to be found in tracking the consequences of Lu Huang Du’s whims. From his banishment of his brother, Lu Dong Pu, for the crime of intercepting an assassin’s blade, to his attempt to elude his prophesied death by conscripting a thousand lookalikes from among his citizens, the emperor is a character governed at every turn by an unspeakable fear of his own mortality.

Through him, and the chapters that recount the consequences of his wildly temperamental rule in the form of an absurd fable, Lu offers a sharp yet entertaining study in the abuse of state power by the narcissistic and incompetent.

Ghost Cities’ second dictator is a director named Baby Bao, who embarks on an egotistical undertaking of his own. His ambition is to create a “historical biopic of the infamous Indomitable Emperor Lu Huang Hu”, a self-styled piece of “cinematic history, a twenty-seven hour extravaganza – no intermission – in simultaneous worldwide release!”. Such a biopic would work primarily to reinforce his delusion that he is biologically “destined for greatness”, by illustrating his belief that his lineage can be traced to the emperor. The conceit makes gleefully explicit the egotism buried in so many artistic projects.

The emperor is later opposed by his brother, Lu Dong Pu, and his nephew, Lu Shan Liang; his counterpart, Xiang Lu (note the resemblance of both their names to their author’s), is a phoney translator hired by the director after he goes viral for his ignorance of Chinese.

Indecencies on indignities

Siang Lu shares an interest in anagrams (and chess) with Russian-American writer Vladimir Nabokov, who appears in his own fiction under names such as Vivian Darkbloom and Adam von Librikov.

Ghost Cities also includes a long, loosely iambic poem titled “Six Levels of Hell”, which narrates Lu Dong Pu’s escape from labyrinthine imprisonment beneath the Imperial City. Lu’s allusions to other texts are too various to properly discuss here. They include John Milton’s Paradise Lost, Dante’s Divine Comedy, Jorge Luis Borges’ Labyrinths, Nabokov’s Pale Fire and Italo Calvino’s Invisible Cities. These references extend Ghost Cities’ concern with the relationship between dictators, architects and artisans, rampaging gods and those humbler deities behind smaller creations.

Women play an important role in Lu’s twin fables, albeit a comparatively subtle one. Wuer, first Lu Dong Pu’s wife and later (against her will) the Imperial Consort, records her husband’s torment in the poem Six Levels of Hell and mourns the death of Lu Shan Liang’s twin brother in a moving parenthetical aside. Yuan (who shares a name with Siang Lu’s wife), a translator and eventually Xiang Lu’s lover, is an intelligent interlocutor.

But Ghost Cities is at its best when it piles indecencies on indignities – when it all goes totally wrong. When piglets are appointed to office. When the swine sits in the chair, and rules as it sees fit.

Joseph Steinberg 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. Miles Franklin 2025: Siang Lu’s Ghost Cities is a haunting comedy about tyranny. Is it the funniest winner ever? – https://theconversation.com/miles-franklin-2025-siang-lus-ghost-cities-is-a-haunting-comedy-about-tyranny-is-it-the-funniest-winner-ever-261584

MIL OSI Analysis – EveningReport.nz –

July 25, 2025

MIL-Evening Report: Columbia’s $200M deal with Trump administration sets a precedent for other universities to bend to the government’s will

Source: The Conversation (Au and NZ) – By Brendan Cantwell, Associate Professor of Higher, Adult, and Lifelong Education, Michigan State University

Students at Columbia University in New York City on April 14, 2025. Charly Triballeau/AFP via Getty Images

Columbia University agreed on July 23, 2025, to pay a US$200 million fine to the federal government and to settle allegations that it did not create a safe environment for Jewish students during Palestinian rights protests in 2024.

The deal will restore the vast majority of the $400 million in federal grants and contracts that Columbia was previously awarded, before the administration withdrew the funding in March 2025.

It marks the first financial and political agreement a university has reached with the Trump administration in its push for more control over higher education – and stands to have significant ripple effects for how other universities and colleges carry out their basic operations.

Amy Lieberman, the education editor at The Conversation U.S., spoke with Brendan Cantwell, a scholar of higher education at Michigan State University, to understand what’s exactly in this agreement – and the lasting precedent it may set on government intervention in higher education.

Palestinian rights demonstrators march through Columbia University on Oct. 7, 2024, marking one year of the war between Hamas and Israel.
Kena Betancur/AFP via Getty Images

What’s in the deal Columbia made with the Trump administration?

The agreement requires Columbia to make a $200 million payment to the federal government. Columbia will also pay $21 million to settle investigations brought by the U.S. Equal Employment Opportunity Commission.

Columbia will need to keep detailed statistics about student applicants – including their race and ethnicity, grades and SAT scores – as well as information about faculty and staff hiring decisions. Columbia will then have to share this data with the federal government.

In exchange, the federal government will release most of the $400 million in frozen grant money previously awarded to Columbia and allow faculty at the university to compete for future federal grants.

How does this deal address antisemitism?

The Trump administration has cited antisemitism against students and faculty on campuses to justify its broad incursion into the business of universities around the country.

Antisemitism is a real and legitimate concern in U.S. society and higher education, including at Columbia.

But the federal complaint the administration made against Columbia was not actually about antisemitism. The administration made a formal accusation of antisemitism at Columbia in May of this year but suspended grants to the university in March. The federal government had initially acknowledged that cutting federal research grants did nothing to address the climate for Jewish students on campus, for example.

When the federal government investigates civil rights violations, it usually conducts site visits and does very thorough investigations. We never saw such a government report about antisemitism at Columbia or other universities.

The settlement that Columbia has entered into with the administration also doesn’t do much about antisemitism.

The agreement includes Columbia redefining antisemitism with a broader definition that is also used by the International Holocaust Remembrance Alliance. The definition now includes “a certain perception of Jews, which may be expressed as hatred toward Jews” – a description that is also used by the U.S. State Department and several European governments but some critics say conflates antisemitism with anti-Zionism.

Instead, the agreement primarily has to do with faculty hiring and admissions decisions. The federal government alleges that Columbia is discriminating against white and Asian applicants, and that this will allow the government to ensure that everybody who is admitted is considered only on the basis of merit.

The administration could argue that changing hiring practices to get faculty who are less hostile to Jewish students could change the campus climate, but the agreement doesn’t really identify ways in which the university contributed to or ignored antisemitic conduct.

Is this a new issue?

There has been a long-running issue that conservatives and members of the Trump administration – dating back to his first term – have with higher education. The Trump administration and other conservatives have said for years that higher education is too liberal.

The protests were the flash point that put Columbia in the administration’s crosshairs, as well as claims that Columbia was creating a hostile environment for Jewish students.

The administration’s complaints aren’t limited to Columbia. Harvard is in a protracted conflict with the administration, and the administration has launched investigations into dozens of other schools around the country. These universities are butting heads with the administration over the same grievance that higher education is too liberal. There are also specific claims about antisemitism on university campuses and the privileges given to nonwhite students in admissions or campus life.

While the administration has a common set of complaints about a range of universities, there is a mix of schools that the administration is taking issue with. Some of them, such as Harvard, are very high profile. The Department of Justice forced out the president at the University of Virginia in January 2025 on the grounds that he had not done enough to root out diversity, equity and inclusion programs at the public university. The University of Virginia may have been a target for the administration because a Republican governor appointed most members of its governance board and agreed with Trump’s complaints.

How could this change the makeup of Columbia’s student population?

The Supreme Court ruled in 2023 that Harvard’s affirmative action program, which considered race in admissions, violated the Equal Protection Clause of the 14th Amendment. This effectively ended race-based affirmative action for all U.S. colleges and universities.

Now, with the Columbia deal, the government could say that it would expect to see a proportion of students who are white increase and students who are Black and Latino to decrease at Columbia. That’s a legal approach that America First Legal, a conservative legal advocacy group founded by Stephen Miller, a Trump administration official, has already tried.

Back in February 2025, America First Legal alleged in a federal lawsuit that the University of California, Los Angeles, was using illegal admissions criteria, because of the number of Black and Latino students that were admitted by the school. That lawsuit is ongoing.

Claire Shipman, Columbia University’s acting president, speaks during the school’s May 2025 commencement ceremony.
Jeenah Moon/Pool/AFP via Getty Images

What does this agreement mean for US higher education as a whole?

It is an enormous, unprecedented shift in how the federal government works with higher education. Since the McCarthy era in the 1940s and ’50s, when professors were blacklisted and fired because of their alleged communism, Americans have not seen the federal government interrogate education.

The federal government does have a role in securing people’s civil rights, including in the context of higher education, but this is very, very different from how the federal government has done civil rights investigations and entered into agreements with universities in the past.

This agreement is very broad and gives the federal government oversight of things that have long been under universities’ control, such as whom they hire to teach and which students they admit.

The federal government is now saying it has the right to look over universities’ shoulders and guide them in this work that has long been considered independent. And the government is willing to be extremely coercive to get universities to comply.

What signal does this agreement send to other universities?

This agreement sets a precedent for the government to direct colleges and universities to comply with its political agenda. This violates the long tradition of academic independence that had helped to make the U.S. higher education system the envy of the world.

Columbia can afford paying $200 million to the federal government. Most universities can’t afford to pay $200 million.

And most campuses cannot survive without federal resources, whether that comes in the form of student financial aid or research grants. This agreement sets a standard for other universities that, if they don’t immediately do what the federal government wants them to do, the government could impose penalties that are so high it could end their ability to operate.

Brendan Cantwell is a Professor in the Department of Educational Administration at Michigan State University.

– ref. Columbia’s $200M deal with Trump administration sets a precedent for other universities to bend to the government’s will – https://theconversation.com/columbias-200m-deal-with-trump-administration-sets-a-precedent-for-other-universities-to-bend-to-the-governments-will-261902

MIL OSI Analysis – EveningReport.nz –

July 25, 2025

MIL-Evening Report: AI will soon be able to audit all published research – what will that mean for public trust in science?

Source: The Conversation (Au and NZ) – By Alexander Kaurov, PhD Candidate in Science and Society, Te Herenga Waka — Victoria University of Wellington

Jamillah Knowles & Digit/Better Images of AI, CC BY-SA

Self-correction is fundamental to science. One of its most important forms is peer review, when anonymous experts scrutinise research before it is published. This helps safeguard the accuracy of the written record.

Yet problems slip through. A range of grassroots and institutional initiatives work to identify problematic papers, strengthen the peer-review process, and clean up the scientific record through retractions or journal closures. But these efforts are imperfect and resource intensive.

Soon, artificial intelligence (AI) will be able to supercharge these efforts. What might that mean for public trust in science?

Peer review isn’t catching everything

In recent decades, the digital age and disciplinary diversification have sparked an explosion in the number of scientific papers being published, the number of journals in existence, and the influence of for-profit publishing.

This has opened the doors for exploitation. Opportunistic “paper mills” sell quick publication with minimal review to academics desperate for credentials, while publishers generate substantial profits through huge article-processing fees.

Corporations have also seized the opportunity to fund low-quality research and ghostwrite papers intended to distort the weight of evidence, influence public policy and alter public opinion in favour of their products.

These ongoing challenges highlight the insufficiency of peer review as the primary guardian of scientific reliability. In response, efforts have sprung up to bolster the integrity of the scientific enterprise.

Retraction Watch actively tracks withdrawn papers and other academic misconduct. Academic sleuths and initiatives such as Data Collada identify manipulated data and figures.

Investigative journalists expose corporate influence. A new field of meta-science (science of science) attempts to measure the processes of science and to uncover biases and flaws.

Not all bad science has a major impact, but some certainly does. It doesn’t just stay within academia; it often seeps into public understanding and policy.

In a recent investigation, we examined a widely-cited safety review of the herbicide glyphosate, which appeared to be independent and comprehensive. In reality, documents produced during legal proceedings against Monsanto revealed that the paper had been ghostwritten by Monsanto employees and published in a journal with ties to the tobacco industry.

Even after this was exposed, the paper continued to shape citations, policy documents and Wikipedia pages worldwide.

When problems like this are uncovered, they can make their way into public conversations, where they are not necessarily perceived as triumphant acts of self-correction. Rather, they may be taken as proof that something is rotten in the state of science. This “science is broken” narrative undermines public trust.

Scientists know that a lot of scientific work is inconsequential, but the public may interpret this differently.
Jamillah Knowles & We and AI, CC BY-SA

AI is already helping police the literature

Until recently, technological assistance in self-correction was mostly limited to plagiarism detectors. But things are changing. Machine-learning services such as ImageTwin and Proofig now scan millions of figures for signs of duplication, manipulation and AI generation.

Natural language processing tools flag “tortured phrases” – the telltale word salads of paper mills. Bibliometric dashboards such as one by Semantic Scholar trace whether papers are cited in support or contradiction.

AI – especially agentic, reasoning-capable models increasingly proficient in mathematics and logic – will soon uncover more subtle flaws.

For example, the Black Spatula Project explores the ability of the latest AI models to check published mathematical proofs at scale, automatically identifying algebraic inconsistencies that eluded human reviewers. Our own work mentioned above also substantially relies on large language models to process large volumes of text.

Given full-text access and sufficient computing power, these systems could soon enable a global audit of the scholarly record. A comprehensive audit will likely find some outright fraud and a much larger mass of routine, journeyman work with garden-variety errors.

We do not know yet how prevalent fraud is, but what we do know is that an awful lot of scientific work is inconsequential. Scientists know this; it’s much discussed that a good deal of published work is never or very rarely cited.

To outsiders, this revelation may be as jarring as uncovering fraud, because it collides with the image of dramatic, heroic scientific discovery that populates university press releases and trade press treatments.

What might give this audit added weight is its AI author, which may be seen as (and may in fact be) impartial and competent, and therefore reliable.

As a result, these findings will be vulnerable to exploitation in disinformation campaigns, particularly since AI is already being used to that end.

Reframing the scientific ideal

Safeguarding public trust requires redefining the scientist’s role in more transparent, realistic terms. Much of today’s research is incremental, career‑sustaining work rooted in education, mentorship and public engagement.

If we are to be honest with ourselves and with the public, we must abandon the incentives that pressure universities and scientific publishers, as well as scientists themselves, to exaggerate the significance of their work. Truly ground-breaking work is rare. But that does not render the rest of scientific work useless.

A more humble and honest portrayal of the scientist as a contributor to a collective, evolving understanding will be more robust to AI-driven scrutiny than the myth of science as a parade of individual breakthroughs.

A sweeping, cross-disciplinary audit is on the horizon. It could come from a government watchdog, a think tank, an anti-science group or a corporation seeking to undermine public trust in science.

Scientists can already anticipate what it will reveal. If the scientific community prepares for the findings – or better still, takes the lead – the audit could inspire a disciplined renewal. But if we delay, the cracks it uncovers may be misinterpreted as fractures in the scientific enterprise itself.

Science has never derived its strength from infallibility. Its credibility lies in the willingness to correct and repair. We must now demonstrate that willingness publicly, before trust is broken.

Naomi Oreskes has received funding from various academic and philanthropic organisations. Currently, her research is partly funded by the Rockefeller Family Fund and the Maine Community Fund. She also receives royalties from her publications and honoraria for speaking events.

Alexander Kaurov 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. AI will soon be able to audit all published research – what will that mean for public trust in science? – https://theconversation.com/ai-will-soon-be-able-to-audit-all-published-research-what-will-that-mean-for-public-trust-in-science-261363

MIL OSI Analysis – EveningReport.nz –

July 25, 2025

MIL-OSI: XAI Madison Equity Premium Income Fund Will Host its Q2 2025 Quarterly Webinar on August 7, 2025

Source: GlobeNewswire (MIL-OSI)

CHICAGO, July 24, 2025 (GLOBE NEWSWIRE) — XAI Madison Equity Premium Income Fund (NYSE: MCN) (the “Fund”) today announced that it plans to host the Fund’s Quarterly Webinar on August 7, 2025 at 11:00 am (Eastern Time). Jared Hagen, Vice President at XA Investments (“XAI”) will moderate the Q&A style webinar with Kimberly Flynn, President at XAI, and Ray Di Bernardo, Portfolio Manager at Madison Investments.

TO JOIN VIA WEB: Please go to the Knowledge Bank section of xainvestments.com or click here to find the online registration link.

TO USE YOUR TELEPHONE: After joining via web, if you prefer to use your phone for audio, you must select that option and call in using a number below, based on your current location.

Dial: (312)-626-6799 or (646)-558-8656 or (267)-831-0333 or (720)-928-9299 or (213)-338-8477
Webinar ID: 818 2684 2773

REPLAY: A replay of the webinar will be available in the Knowledge Bank section of xainvestments.com.

The Fund’s primary investment objective is to provide a high level of current income and gains, with a secondary objective of capital appreciation. The Fund pursues its investment objectives by investing in a portfolio consisting primarily of high quality, large and mid-capitalization stocks that are, in the view of the Fund’s Investment sub-adviser, selling at a reasonable price in relation to their long-term earnings growth rates. The Fund will, on an ongoing and consistent basis, sell covered call options on its portfolio stocks to seek to generate current earnings from option premiums. There can be no assurance that the Fund will achieve its investment objectives. The Fund’s common shares are traded on the New York Stock Exchange under the symbol MCN.

About XA Investments

XA Investments LLC (“XAI”) is a Chicago-based firm founded by XMS Capital Partners in 2016. XAI serves as the investment adviser for two listed closed-end funds and an interval closed-end fund, respectively the XAI Octagon Floating Rate & Alternative Income Trust, the XAI Madison Equity Premium Income Fund, and the Octagon XAI CLO Income Fund. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including product development and market research, marketing and fund management. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. For more information, please visit www.xainvestments.com.

About XMS Capital Partners

XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.

About Madison Investments

Madison Investments (Madison) is an independent investment management firm based in Madison, Wisconsin. The firm was founded in 1974, has approximately $28 billion in assets under management as of March 31, 2025, and is recognized as one of the nation’s top investment firms. The firm has managed covered call strategies for over 20 years through various market cycles. Madison offers domestic fixed income, U.S. and international equity, covered call, multi-asset, insurance, and credit union investment management strategies. For more information, please visit www.madisonfunds.com.

XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.

Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.


NOT FDIC INSURED	NO BANK GUARANTEE	MAY LOSE VALUE

	Paralel Distributors, LLC – Distributor

Media Contact:

Kimberly Flynn, President
XA Investments LLC
Phone: 312-374-6931
Email: kflynn@xainvestments.com
www.xainvestments.com

The MIL Network –

July 25, 2025

MIL-OSI: MidWestOne Financial Group, Inc. Reports Financial Results for the Second Quarter of 2025

Source: GlobeNewswire (MIL-OSI)

IOWA CITY, Iowa, July 24, 2025 (GLOBE NEWSWIRE) — MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we,” “our,” or the “Company”) today reported results for the second quarter of 2025.

Second Quarter 2025 Summary¹

Pre-tax, pre-provision net revenue increased 15% to $24.5 million².
- Net interest margin (tax equivalent) was 3.57%²; core net interest margin expanded 13 basis points (“bps”) to 3.49%.²
- Noninterest income was $10.2 million.
- Noninterest expense was $35.8 million.
- Efficiency ratio improved to 56.20%² from 59.38%².
Net income of $10.0 million, or $0.48 per diluted common share, reflected credit loss expense of $11.9 million stemming primarily from a single commercial real estate (“CRE”) office credit.
Criticized loans ratio improved 32 bps to 5.15%.
Allowance for credit losses ratio increased to 1.50%, due primarily to the single CRE office credit.
Annualized loan growth of 7.4%.
Tangible book value per share of $23.92,² an increase of 2.4%.
Common equity tier 1 (“CET1”) capital ratio improved 5 bps to 11.02%.
Provided notice of redemption for all $65.0 million aggregate principal of the Company’s 5.75% fixed-to-floating rate subordinated notes due 2030 set to reprice on July 30^th.

CEO Commentary

Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, “Due to the expertise of our MidWestOne team, we continued to execute well on our 2025 strategic initiatives. Strong loan growth and back book loan re-pricing led to tax equivalent net interest margin expansion of 13 basis points, to 3.57%², and to 5% linked quarter net interest income growth. Investments in our relationship fee income businesses continue to bear fruit with wealth management, Small Business Administration (“SBA”), and residential mortgage revenues up quarter over quarter.

We maintained our expense discipline even as we added significant customer facing talent in Denver and the Twin Cities, as well as invested in our platforms to drive internal efficiencies and improve the customer experience.

Earnings and certain asset quality measures were unfavorably impacted by a single $24 million suburban Twin Cities CRE office credit. The loan was originated in June 2022 and previously classified, but moved to nonaccrual in the second quarter. A receiver is in place, resolution efforts have begun, and a specific reserve was established, which led to an increase in our allowance for credit losses ratio to 1.50%.

Our balance sheet, capital, and underlying earnings strength position us well for the second half of 2025 as we continue to make significant progress in building a high-performing, relationship-driven community bank.”

__________________
¹_{Second Quarter Summary compares to the first quarter of 2025 (the “linked quarter”) unless noted.}
²_{Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.}

(Dollars in thousands, except per share amounts and as noted)	As of or for the quarter ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
		2025			2025			2024			2025			2024
Financial Results
Revenue	$	60,231		$	57,575		$	57,901		$	117,806		$	102,382
Credit loss expense		11,889			1,687			1,267			13,576			5,956
Noninterest expense		35,767			36,293			35,761			72,060			71,326
Net income		9,980			15,138			15,819			25,118			19,088
Pre-tax pre-provision net revenue⁽³⁾		24,464			21,282			22,140			45,746			31,056
Adjusted earnings⁽³⁾		10,176			15,301			8,132			25,479			12,621
Per Common Share
Diluted earnings per share	$	0.48		$	0.73		$	1.00		$	1.20		$	1.21
Adjusted earnings per share⁽³⁾		0.49			0.73			0.52			1.22			0.80
Book value		28.36			27.85			34.44			28.36			34.44
Tangible book value⁽³⁾		23.92			23.36			28.27			23.92			28.27
Balance Sheet & Credit Quality
Loans In millions	$	4,381.2		$	4,304.2		$	4,287.2		$	4,381.2		$	4,287.2
Investment securities In millions		1,235.0			1,305.5			1,824.1			1,235.0			1,824.1
Deposits In millions		5,388.1			5,489.1			5,412.4			5,388.1			5,412.4
Net loan charge-offs In millions		0.2			3.1			0.5			3.3			0.7
Allowance for credit losses ratio		1.50	%		1.25	%		1.26	%		1.50	%		1.26	%
Selected Ratios
Return on average assets		0.65	%		1.00	%		0.95	%		0.82	%		0.58	%
Net interest margin, tax equivalent⁽³⁾		3.57	%		3.44	%		2.41	%		3.51	%		2.37	%
Return on average equity		6.81	%		10.74	%		11.91	%		8.74	%		7.23	%
Return on average tangible equity⁽³⁾		8.84	%		13.75	%		15.74	%		11.24	%		9.98	%
Efficiency ratio⁽³⁾		56.20	%		59.38	%		56.29	%		57.75	%		62.83	%

REVENUE REVIEW

Revenue							Change		Change
Revenue							2Q25 vs		2Q25 vs
(Dollars in thousands)	2Q25		1Q25		2Q24		1Q25		2Q24
Net interest income	$	49,982	$	47,439	$	36,347	5	%	38	%
Noninterest income		10,249		10,136		21,554	1	%	(52)%
Total revenue, net of interest expense	$	60,231	$	57,575	$	57,901	5	%	4	%

Total revenue for the second quarter of 2025 increased $2.7 million from the first quarter of 2025 due to higher net interest income and noninterest income during the quarter. When compared to the second quarter of 2024, total revenue increased $2.3 million due to higher net interest income partially offset by lower noninterest income.

Net interest income of $50.0 million for the second quarter of 2025 increased $2.5 million from the first quarter of 2025 due to higher earning asset volumes and yields and lower funding costs, partially offset by higher funding volumes. When compared to the second quarter of 2024, net interest income increased $13.6 million due to higher earning asset yields and lower funding volumes and costs, partially offset by lower earning asset volumes.

The Company’s tax equivalent net interest margin was 3.57%³ in the second quarter of 2025, compared to 3.44%³ in the first quarter of 2025, driven by higher earning asset yields and lower interest bearing liability costs. Total earning asset yield increased 12 bps from the first quarter of 2025, primarily due to an increase of 10 bps in loan yield. Interest bearing liability costs during the second quarter of 2025 decreased 2 bps to 2.39%, primarily due to reductions in long-term debt costs and interest bearing deposits of 13 bps and 2 bps, to 6.28% and 2.29%, respectively, from the first quarter of 2025.

The Company’s tax equivalent net interest margin was 3.57%³ in the second quarter of 2025, compared to 2.41%³ in the second quarter of 2024, driven by higher earning asset yields and lower interest bearing liability costs. Total earning assets yield increased 75 bps from the second quarter of 2024, primarily due to increases of 189 bps and 12 bps in total investment securities and loan yields, respectively. Interest bearing liability costs decreased 46 bps to 2.39%, due to long-term debt costs of 6.28% and interest bearing deposit costs of 2.29%, which decreased 67 bps, and 25 bps, respectively, from the second quarter of 2024.

__________________
³_{Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.}

Noninterest Income									Change		Change
Noninterest Income									2Q25 vs		2Q25 vs
(Dollars in thousands)	2Q25			1Q25			2Q24		1Q25		2Q24
Investment services and trust activities	$	3,705		$	3,544		$	3,504	5	%	6	%
Service charges and fees		2,190			2,131			2,156	3	%	2	%
Card revenue		1,934			1,744			1,907	11	%	1	%
Loan revenue		1,417			1,194			1,525	19	%	(7)%
Bank-owned life insurance		677			1,057			668	(36)%		1	%
Investment securities gains, net		—			33			33	(100)%		(100)%
Other		326			433			11,761	(25)%		(97)%
Total noninterest income	$	10,249		$	10,136		$	21,554	1	%	(52)%

MSR adjustment (included above in Loan revenue)	$	(264	)	$	(213	)	$	129	24	%	(305)%

Noninterest income for the second quarter of 2025 increased $0.1 million from the linked quarter, primarily due to increases of $0.2 million each in loan revenue, card revenue, and investment services and trust activities revenue. The increase in loan revenue was due primarily to a $0.2 million increase in mortgage origination fee revenue, coupled with an increase of $0.2 million in SBA gain on sale revenue. The increase in card revenue was driven primarily by higher interchange fee income. The increase in investment services and trust activities revenue was driven by higher assets under administration. Partially offsetting these increases was a decline of $0.4 million in bank-owned life insurance revenue stemming from the death benefit recognized in the first quarter of 2025.

Noninterest income for the second quarter of 2025 decreased $11.3 million from the second quarter of 2024 primarily due to the decline in other revenue stemming from the $11.1 million gain realized in connection with the sale of our Florida banking operations in the second quarter of 2024. Also contributing to the decline in noninterest income was a $0.4 million unfavorable change in the fair value of our mortgage servicing rights, which is included in loan revenue, and a decline of $0.4 million in swap origination fee income, which is recorded in other revenue. Partially offsetting these declines was an increase of $0.2 million in investment services and trust activities revenue, driven by higher assets under administration.

EXPENSE REVIEW

Noninterest Expense							Change		Change
Noninterest Expense							2Q25 vs		2Q25 vs
(Dollars in thousands)	2Q25		1Q25		2Q24		1Q25		2Q24
Compensation and employee benefits	$	21,011	$	21,212	$	20,985	(1)%		—	%
Occupancy expense of premises, net		2,540		2,588		2,435	(2)%		4	%
Equipment		2,550		2,426		2,530	5	%	1	%
Legal and professional		2,153		2,226		2,253	(3)%		(4)%
Data processing		1,486		1,698		1,645	(12)%		(10)%
Marketing		762		552		636	38	%	20	%
Amortization of intangibles		1,252		1,408		1,593	(11)%		(21)%
FDIC insurance		851		917		1,051	(7)%		(19)%
Communications		161		159		191	1	%	(16)%
Foreclosed assets, net		83		74		138	12	%	(40)%
Other		2,918		3,033		2,304	(4)%		27	%
Total noninterest expense	$	35,767	$	36,293	$	35,761	(1)%		—	%

Merger-related Expenses
Merger-related Expenses
(Dollars in thousands)	2Q25		1Q25		2Q24
Compensation and employee benefits	$	—	$	—	$	73
Equipment		—		—		28
Legal and professional		—		40		462
Data processing		—		—		251
Communications		—		—		8
Other		—		—		32
Total merger-related expenses	$	—	$	40	$	854

Noninterest expense for the second quarter of 2025 decreased $0.5 million from the linked quarter, primarily due to decreases of $0.2 million each in data processing, compensation and employee benefits, and amortization of intangibles. The decrease in data processing was primarily driven by a decrease in core banking system costs. The decrease in compensation and employee benefits reflected the receipt of $1.1 million from Employee Retention Credit claims, which was partially offset by higher wage, equity compensation and employee benefits expense.

Noninterest expense for the second quarter of 2025 compared to the prior year was stable at $35.8 million. The $0.6 million increase in other noninterest expense stemmed primarily from customer deposits costs. Further, excluding merger-related expenses, legal and professional costs increased $0.4 million due primarily to higher litigation-related legal expenses. Those increases were partially offset by lower intangible amortization and FDIC insurance costs, which decreased $0.3 million and $0.2 million, respectively.

The Company’s effective tax rate was 20.6% in the second quarter of 2025, compared to 22.7% in the linked quarter. The effective income tax rate for the full year 2025 is expected to be 22-23%.

BALANCE SHEET REVIEW

Total assets were $6.16 billion at June 30, 2025, compared to $6.25 billion at March 31, 2025 and $6.58 billion at June 30, 2024. The decrease from March 31, 2025 was primarily due to lower cash and security volumes, partially offset by higher loan volumes. Compared to June 30, 2024, the decrease was primarily driven by lower security volumes, partially offset by higher loan volumes.

Loans Held for Investment (Dollars in thousands)	June 30, 2025				March 31, 2025				June 30, 2024
Loans Held for Investment (Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Commercial and industrial	$	1,226,265	28.0	%	$	1,140,138	26.5	%	$	1,120,983	26.1	%
Agricultural		128,717	2.9			131,409	3.1			107,983	2.5
Commercial real estate
Construction and development		280,918	6.4			293,280	6.8			351,646	8.2
Farmland		186,494	4.3			180,633	4.2			183,641	4.3
Multifamily		438,193	10.0			421,204	9.8			430,054	10.0
Other		1,407,469	32.1			1,425,062	33.0			1,348,515	31.5
Total commercial real estate		2,313,074	52.8			2,320,179	53.8			2,313,856	54.0
Residential real estate
One-to-four family first liens		467,970	10.7			471,688	11.0			492,541	11.5
One-to-four family junior liens		188,671	4.3			182,346	4.2			176,105	4.1
Total residential real estate		656,641	15.0			654,034	15.2			668,646	15.6
Consumer		56,491	1.3			58,424	1.4			75,764	1.8
Loans held for investment, net of unearned income	$	4,381,188	100.0	%	$	4,304,184	100.0	%	$	4,287,232	100.0	%

Total commitments to extend credit	$	1,074,935			$	1,080,300			$	1,200,605

Loans held for investment, net of unearned income at June 30, 2025 were $4.38 billion, increasing $77.0 million, or 1.8%, from $4.30 billion at March 31, 2025 and increasing $94.0 million, or 2.2%, from $4.29 billion at June 30, 2024. The increases across both periods were primarily driven by organic loan growth and higher line of credit usage.

Investment Securities(Dollars in thousands)	June 30, 2025				March 31, 2025				June 30, 2024
Investment Securities(Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Available for sale	$	1,235,045	100.0	%	$	1,305,530	100.0	%	$	771,034	42.3	%
Held to maturity		—	—	%		—	—	%		1,053,080	57.7	%
Total investment securities	$	1,235,045			$	1,305,530			$	1,824,114

Investment securities at June 30, 2025 were $1.24 billion, decreasing $70.5 million from March 31, 2025 and decreasing $589.1 million from June 30, 2024. The decrease from the first quarter of 2025 was primarily due to principal cash flows received from scheduled payments, calls, and maturities. The decrease from the second quarter of 2024 stemmed primarily from the sale of debt securities in connection with a balance sheet repositioning, as well as principal cash flows received from scheduled payments, calls, and maturities.

Deposits	June 30, 2025				March 31, 2025				June 30, 2024
(Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Noninterest bearing deposits	$	910,693	16.9	%	$	903,714	16.5	%	$	882,472	16.3	%
Interest checking deposits		1,206,096	22.5			1,283,328	23.3			1,284,243	23.7
Money market deposits		971,048	18.0			1,002,066	18.3			1,043,376	19.3
Savings deposits		851,636	15.8			877,348	16.0			745,639	13.8
Time deposits of $250 and under		837,302	15.5			818,012	14.9			803,301	14.8
Total core deposits		4,776,775	88.7			4,884,468	89.0			4,759,031	87.9
Brokered time deposits		200,000	3.7			200,000	3.6			196,000	3.6
Time deposits over $250		411,323	7.6			404,674	7.4			457,388	8.5
Total deposits	$	5,388,098	100.0	%	$	5,489,142	100.0	%	$	5,412,419	100.0	%

Total deposits at June 30, 2025 were $5.39 billion, decreasing $101.0 million, or 1.8%, from $5.49 billion at March 31, 2025, and decreasing $24.3 million, or 0.4%, from $5.41 billion at June 30, 2024. Noninterest bearing deposits at June 30, 2025 were $910.7 million, an increase of $7.0 million from March 31, 2025 and an increase of $28.2 million from June 30, 2024.

Borrowed Funds	June 30, 2025				March 31, 2025				June 30, 2024
(Dollars in thousands)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Short-term borrowings	$	—	—	%	$	1,482	1.3	%	$	414,684	78.3	%
Long-term debt		112,320	100.0	%		111,398	98.7	%		114,839	21.7	%
Total borrowed funds	$	112,320			$	112,880			$	529,523

Borrowed funds were $112.3 million at June 30, 2025, a decrease of $0.6 million from March 31, 2025 and a decrease of $417.2 million from June 30, 2024. The decrease compared to the linked quarter was due primarily to lower securities sold under agreements to repurchase. The decrease compared to June 30, 2024 was primarily due to the pay-off of $405.0 million of BTFP borrowings and scheduled payments on long-term debt.

In June 2025, the Company provided notice to the trustee of its intent to redeem all $65.0 million aggregate principal of its 5.75% fixed-to-floating rate subordinated notes due 2030. To complete the redemption, the Company expects to utilize a combination of cash on hand and proceeds from a $50.0 million senior term note. The senior term note is expected to be structured as a 5-year maturity, 7-year amortization facility, and bear interest at a floating rate of 1-month term SOFR plus 1.75%. The financing pursuant to the senior note is expected to close on July 29, 2025, and the redemption is expected to occur on July 30, 2025.

Capital	June 30,			March 31,			June 30,
(Dollars in thousands)	2025 ⁽¹⁾				2025			2024
Total shareholders’ equity	$	589,040		$	579,625		$	543,286
Accumulated other comprehensive loss		(57,557	)		(63,098	)		(58,135	)
*MidWestOne* Financial Group, Inc. Consolidated**
Tier 1 leverage to average assets ratio		9.62	%		9.50	%		8.29	%
Common equity tier 1 capital to risk-weighted assets ratio		11.02	%		10.97	%		9.56	%
Tier 1 capital to risk-weighted assets ratio		11.88	%		11.84	%		10.35	%
Total capital to risk-weighted assets ratio		14.44	%		14.34	%		12.62	%
*MidWestOne* Bank**
Tier 1 leverage to average assets ratio		10.43	%		10.42	%		9.24	%
Common equity tier 1 capital to risk-weighted assets ratio		12.95	%		13.02	%		11.55	%
Tier 1 capital to risk-weighted assets ratio		12.95	%		13.02	%		11.55	%
Total capital to risk-weighted assets ratio		14.20	%		14.21	%		12.61	%
⁽¹⁾ Regulatory capital ratios for June 30, 2025 are preliminary

Total shareholders’ equity at June 30, 2025 increased $9.4 million from March 31, 2025, driven primarily by a decrease in accumulated other comprehensive loss and an increase in retained earnings, partially offset by an increase in treasury stock. Total shareholders’ equity at June 30, 2025 increased $45.8 million from June 30, 2024, primarily due to increases in common stock and additional paid-in-capital stemming from the common equity capital raise in the third quarter of 2024, and partially offset by a decrease in retained earnings.

On July 22, 2025, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable September 16, 2025, to shareholders of record at the close of business on September 2, 2025.

The current share repurchase program allows for the repurchase of up to $15.0 million of the Company’s common shares. Under such program, the Company repurchased 63,402 shares of its common stock at an average price of $27.65 per share and a total cost of $1.8 million during the period March 31, 2025 through June 30, 2025. No shares were repurchased during the subsequent period through July 24, 2025. As of June 30, 2025, $13.2 million remained available under this program.

CREDIT QUALITY REVIEW

Credit Quality	As of or For the Three Months Ended
Credit Quality	June 30,			March 31,			June 30,
(Dollars in thousands)		2025			2025			2024
Credit loss expense related to loans	$	12,089		$	1,787		$	467
Net charge-offs		189			3,087			524
Allowance for credit losses		65,800			53,900			53,900
Pass	$	4,155,385		$	4,068,707		$	3,991,692
Special Mention		98,998			121,494			146,253
Classified		126,805			113,983			149,287
Criticized		225,803			235,477			295,540
Loans greater than 30 days past due and accruing	$	12,161		$	6,119		$	9,358
Nonperforming loans	$	37,192		$	17,470		$	25,128
Nonperforming assets		40,606			20,889			31,181
Net charge-off ratio⁽¹⁾		0.02	%		0.29	%		0.05	%
Classified loans ratio⁽²⁾		2.89	%		2.65	%		3.48	%
Criticized loans ratio⁽³⁾		5.15	%		5.47	%		6.89	%
Nonperforming loans ratio⁽⁴⁾		0.85	%		0.41	%		0.59	%
Nonperforming assets ratio⁽⁵⁾		0.66	%		0.33	%		0.47	%
Allowance for credit losses ratio⁽⁶⁾		1.50	%		1.25	%		1.26	%
Allowance for credit losses to nonaccrual loans ratio⁽⁷⁾		179.19	%		309.47	%		218.26	%
⁽¹⁾ Net charge-off ratio is calculated as annualized net charge-offs divided by the sum of average loans held for investment, net of unearned income and average loans held for sale, during the period.
⁽²⁾ Classified loans ratio is calculated as classified loans divided by loans held for investment, net of unearned income, at the end of the period.
⁽³⁾ Criticized loans ratio is calculated as criticized loans divided by loans held for investment, net of unearned income, at the end of the period.
⁽⁴⁾ Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
⁽⁵⁾ Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period.
⁽⁶⁾ Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income, at the end of the period.
⁽⁷⁾ Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period.

Compared to the linked quarter, both nonperforming loans and nonperforming assets increased $19.7 million, primarily due to a single $24.0 million CRE office credit, partially offset by the sale of a $3.9 million CRE office credit. Special mention loan balances decreased $22.5 million, or 19%, while classified loan balances increased $12.8 million, or 11%. Compared to the prior year period, nonperforming loans and nonperforming assets increased $12.1 million and $9.4 million, respectively. Special mention loan balances decreased $47.3 million, or 32%, while classified loan balances decreased $22.5 million, or 15%. The net charge-off ratio declined 27 bps from the linked quarter and 3 bps from the same period in the prior year.

As of June 30, 2025, the allowance for credit losses was $65.8 million and the allowance for credit losses ratio was 1.50%, compared with $53.9 million and 1.25%, respectively, at March 31, 2025. Credit loss expense of $11.9 million in the second quarter of 2025 primarily reflected the specific reserve established in connection with the single CRE office credit previously discussed.

Nonperforming Loans Roll Forward (Dollars in thousands)	Nonaccrual			90+ Days Past Due & Still Accruing			Total
Balance at March 31, 2025	$	17,417		$	53		$	17,470
Loans placed on nonaccrual or 90+ days past due & still accruing		25,279			569			25,848
Proceeds related to repayment or sale		(4,973	)		—			(4,973	)
Loans returned to accrual status or no longer past due		(632	)		—			(632	)
Charge-offs		(187	)		(151	)		(338	)
Transfers to foreclosed assets		(183	)		—			(183	)
Balance at June 30, 2025	$	36,721		$	471		$	37,192

CONFERENCE CALL DETAILS

The Company will host a conference call for investors at 11:00 a.m. CT on Friday, July 25, 2025. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=a6070726&confId=80381. After pre-registering for this event you will receive your access details via email. On the day of the call, you are also able to dial 1-833-470-1428 using an access code of 293794 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until October 23, 2025 by calling 1-866-813-9403 and using the replay access code of 763204. A transcript of the call will also be available on the Company’s web site (www.midwestonefinancial.com) within three business days of the call.

ABOUT MIDWESTONE FINANCIAL GROUP, INC.

MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. MidWestOne is the parent company of MidWestOne Bank, which operates banking offices in Iowa, Minnesota, Wisconsin, and Colorado. MidWestOne provides electronic delivery of financial services through its website, MidWestOne.bank. MidWestOne Financial Group, Inc. trades on the Nasdaq Global Select Market under the symbol “MOFG”.

Cautionary Note Regarding Forward-Looking Statements

This release contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law.

Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the effects of changes in interest rates, including on our net income and the value of our securities portfolio; (2) fluctuations in the value of our investment securities; (3) effects on the U.S. economy resulting from the implementation of proposed policies and executive orders, including the imposition of tariffs, changes in immigration policy, changes to regulatory or other governmental agencies, DEI and ESG initiative trends, changes in consumer protection policies, changes in foreign policy and tax regulations; (4) volatility of rate-sensitive deposits; (5) asset/liability matching risks and liquidity risks; (6) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (7) the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; (8) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures and future monetary policies of the Federal Reserve in response thereto on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (9) the sufficiency of the allowance for credit losses to absorb the amount of expected losses inherent in our existing loan portfolio; (10) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (11) credit risks and risks from concentrations (by type of borrower, collateral, geographic area and by industry) within our loan portfolio; (12) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (13) governmental monetary and fiscal policies; (14) new or revised general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (15) the imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and value of the agricultural or other products of our borrowers; (16) war or terrorist activities, including ongoing conflicts in the Middle East and the Russian invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (17) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, and including changes in interpretation or prioritization of such laws and regulations; (18) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (19) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (20) changes in the business and economic conditions generally and in the financial services industry, and the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in prior bank failures; (21) the occurrence of fraudulent activity, breaches, or failures of our or our third party vendors’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (22) the ability to attract and retain key executives and employees experienced in banking and financial services; (23) our ability to adapt successfully to technological changes implemented by us and other parties in the financial services industry, including third-party vendors, which may be more difficult to implement or more expensive than anticipated or which may have unforeseen consequence to us and our customers, including the development and implementation of tools incorporating artificial intelligence; (24) operational risks, including data processing system failures and fraud; (25) the costs, effects and outcomes of existing or future litigation or other legal proceedings and regulatory actions; (26) the risks of mergers or branch sales (including the sale of our Florida banking operations and the acquisition of Denver Bankshares, Inc.), including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; (27) the economic impacts on the Company and its customers of climate change, natural disasters and exceptional weather occurrences, such as: tornadoes, floods and blizzards; and (28) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company.

MIDWESTONE FINANCIAL GROUP, INC.
FIVE QUARTER CONSOLIDATED BALANCE SHEETS

	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)		2025			2025			2024			2024			2024
ASSETS
Cash and due from banks	$	78,696		$	68,545		$	71,803		$	72,173		$	66,228
Interest earning deposits in banks		90,749			182,360			133,092			129,695			35,340
Total cash and cash equivalents		169,445			250,905			204,895			201,868			101,568
Debt securities available for sale at fair value		1,235,045			1,305,530			1,328,433			1,623,104			771,034
Held to maturity securities at amortized cost		—			—			—			—			1,053,080
Total securities		1,235,045			1,305,530			1,328,433			1,623,104			1,824,114
Loans held for sale		16,812			13,836			749			3,283			2,850
Gross loans held for investment		4,391,426			4,315,546			4,328,413			4,344,559			4,304,619
Unearned income, net		(10,238	)		(11,362	)		(12,786	)		(15,803	)		(17,387	)
Loans held for investment, net of unearned income		4,381,188			4,304,184			4,315,627			4,328,756			4,287,232
Allowance for credit losses		(65,800	)		(53,900	)		(55,200	)		(54,000	)		(53,900	)
Total loans held for investment, net		4,315,388			4,250,284			4,260,427			4,274,756			4,233,332
Premises and equipment, net		89,910			90,031			90,851			90,750			91,793
Goodwill		69,788			69,788			69,788			69,788			69,388
Other intangible assets, net		22,359			23,611			25,019			26,469			27,939
Foreclosed assets, net		3,414			3,419			3,337			3,583			6,053
Other assets		238,612			246,990			252,830			258,881			224,621
Total assets	$	6,160,773		$	6,254,394		$	6,236,329		$	6,552,482		$	6,581,658
LIABILITIES
Noninterest bearing deposits	$	910,693		$	903,714		$	951,423		$	917,715		$	882,472
Interest bearing deposits		4,477,405			4,585,428			4,526,559			4,451,012			4,529,947
Total deposits		5,388,098			5,489,142			5,477,982			5,368,727			5,412,419
Short-term borrowings		—			1,482			3,186			410,630			414,684
Long-term debt		112,320			111,398			113,376			115,051			114,839
Other liabilities		71,315			72,747			82,089			95,836			96,430
Total liabilities		5,571,733			5,674,769			5,676,633			5,990,244			6,038,372
SHAREHOLDERS’ EQUITY
Common stock		21,580			21,580			21,580			21,580			16,581
Additional paid-in capital		414,485			414,258			414,987			414,965			300,831
Retained earnings		232,718			227,790			217,776			206,490			306,030
Treasury stock		(22,186	)		(20,905	)		(21,885	)		(21,955	)		(22,021	)
Accumulated other comprehensive loss		(57,557	)		(63,098	)		(72,762	)		(58,842	)		(58,135	)
Total shareholders’ equity		589,040			579,625			559,696			562,238			543,286
Total liabilities and shareholders’ equity	$	6,160,773		$	6,254,394		$	6,236,329		$	6,552,482		$	6,581,658

MIDWESTONE FINANCIAL GROUP, INC.
FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME

	Three Months Ended											Six Months Ended
(Dollars in thousands, except per share data)	June 30,		March 31,		December 31,		September 30,			June 30,		June 30,		June 30,
(Dollars in thousands, except per share data)		2025		2025		2024		2024			2024		2025		2024
Interest income
Loans, including fees	$	62,276	$	59,462	$	62,458	$	62,521		$	61,643	$	121,738	$	119,590
Taxable investment securities		12,928		13,327		11,320		8,779			9,228		26,255		18,688
Tax-exempt investment securities		699		703		728		1,611			1,663		1,402		3,373
Other		1,517		1,247		3,761		785			242		2,764		660
Total interest income		77,420		74,739		78,267		73,696			72,776		152,159		142,311
Interest expense
Deposits		25,665		25,484		27,324		29,117			28,942		51,149		56,668
Short-term borrowings		19		25		115		5,043			5,409		44		10,384
Long-term debt		1,754		1,791		1,890		2,015			2,078		3,545		4,181
Total interest expense		27,438		27,300		29,329		36,175			36,429		54,738		71,233
Net interest income		49,982		47,439		48,938		37,521			36,347		97,421		71,078
Credit loss expense		11,889		1,687		1,291		1,535			1,267		13,576		5,956
Net interest income after credit loss expense		38,093		45,752		47,647		35,986			35,080		83,845		65,122
Noninterest income
Investment services and trust activities		3,705		3,544		3,779		3,410			3,504		7,249		7,007
Service charges and fees		2,190		2,131		2,159		2,170			2,156		4,321		4,300
Card revenue		1,934		1,744		1,833		1,935			1,907		3,678		3,850
Loan revenue		1,417		1,194		1,841		760			1,525		2,611		2,381
Bank-owned life insurance		677		1,057		719		879			668		1,734		1,328
Investment securities gains (losses), net		—		33		161		(140,182	)		33		33		69
Other		326		433		345		640			11,761		759		12,369
Total noninterest income (loss)		10,249		10,136		10,837		(130,388	)		21,554		20,385		31,304
Noninterest expense
Compensation and employee benefits		21,011		21,212		20,684		19,943			20,985		42,223		41,915
Occupancy expense of premises, net		2,540		2,588		2,772		2,443			2,435		5,128		5,248
Equipment		2,550		2,426		2,688		2,486			2,530		4,976		5,130
Legal and professional		2,153		2,226		2,534		2,261			2,253		4,379		4,312
Data processing		1,486		1,698		1,719		1,580			1,645		3,184		3,005
Marketing		762		552		793		619			636		1,314		1,234
Amortization of intangibles		1,252		1,408		1,449		1,470			1,593		2,660		3,230
FDIC insurance		851		917		980		923			1,051		1,768		1,993
Communications		161		159		154		159			191		320		387
Foreclosed assets, net		83		74		56		330			138		157		496
Other		2,918		3,033		3,543		3,584			2,304		5,951		4,376
Total noninterest expense		35,767		36,293		37,372		35,798			35,761		72,060		71,326
Income (loss) before income tax expense (benefit)		12,575		19,595		21,112		(130,200	)		20,873		32,170		25,100
Income tax expense (benefit)		2,595		4,457		4,782		(34,493	)		5,054		7,052		6,012
Net income (loss)	$	9,980	$	15,138	$	16,330	$	(95,707	)	$	15,819	$	25,118	$	19,088

Earnings (loss) per common share
Basic	$	0.48	$	0.73	$	0.79	$	(6.05	)	$	1.00	$	1.21	$	1.21
Diluted	$	0.48	$	0.73	$	0.78	$	(6.05	)	$	1.00	$	1.20	$	1.21
Weighted average basic common shares outstanding		20,816		20,797		20,776		15,829			15,763		20,807		15,743
Weighted average diluted common shares outstanding		20,843		20,849		20,851		15,829			15,781		20,846		15,775
Dividends paid per common share	$	0.2425	$	0.2425	$	0.2425	$	0.2425		$	0.2425	$	0.4850	$	0.4850

MIDWESTONE FINANCIAL GROUP, INC.
FINANCIAL STATISTICS

	As of or for the Three Months Ended									As of or for the Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands, except per share amounts)		2025			2025			2024			2025			2024
Earnings:
Net interest income	$	49,982		$	47,439		$	36,347		$	97,421		$	71,078
Noninterest income		10,249			10,136			21,554			20,385			31,304
Total revenue, net of interest expense		60,231			57,575			57,901			117,806			102,382
Credit loss expense		11,889			1,687			1,267			13,576			5,956
Noninterest expense		35,767			36,293			35,761			72,060			71,326
Income before income tax expense		12,575			19,595			20,873			32,170			25,100
Income tax expense		2,595			4,457			5,054			7,052			6,012
Net income	$	9,980		$	15,138		$	15,819		$	25,118		$	19,088
Pre-tax pre-provision net revenue⁽¹⁾	$	24,464		$	21,282		$	22,140		$	45,746		$	31,056
Adjusted earnings⁽¹⁾		10,176			15,301			8,132			25,479			12,621
Per Share Data:
Diluted earnings	$	0.48		$	0.73		$	1.00		$	1.20		$	1.21
Adjusted earnings⁽¹⁾		0.49			0.73			0.52			1.22			0.80
Book value		28.36			27.85			34.44			28.36			34.44
Tangible book value⁽¹⁾		23.92			23.36			28.27			23.92			28.27
Ending Balance Sheet:
Total assets	$	6,160,773		$	6,254,394		$	6,581,658		$	6,160,773		$	6,581,658
Loans held for investment, net of unearned income		4,381,188			4,304,184			4,287,232			4,381,188			4,287,232
Total securities		1,235,045			1,305,530			1,824,114			1,235,045			1,824,114
Total deposits		5,388,098			5,489,142			5,412,419			5,388,098			5,412,419
Short-term borrowings		—			1,482			414,684			—			414,684
Long-term debt		112,320			111,398			114,839			112,320			114,839
Total shareholders’ equity		589,040			579,625			543,286			589,040			543,286
Average Balance Sheet:
Average total assets	$	6,172,649		$	6,168,546		$	6,713,573		$	6,170,609		$	6,674,476
Average total loans		4,370,196			4,290,710			4,419,697			4,330,659			4,358,957
Average total deposits		5,398,916			5,398,819			5,514,924			5,398,868			5,498,020
Financial Ratios:
Return on average assets		0.65	%		1.00	%		0.95	%		0.82	%		0.58	%
Return on average equity		6.81	%		10.74	%		11.91	%		8.74	%		7.23	%
Return on average tangible equity⁽¹⁾		8.84	%		13.75	%		15.74	%		11.24	%		9.98	%
Efficiency ratio⁽¹⁾		56.20	%		59.38	%		56.29	%		57.75	%		62.83	%
Net interest margin, tax equivalent⁽¹⁾		3.57	%		3.44	%		2.41	%		3.51	%		2.37	%
Loans to deposits ratio		81.31	%		78.41	%		79.21	%		81.31	%		79.21	%
CET1 Ratio		11.02	%		10.97	%		9.56	%		11.02	%		9.56	%
Common equity ratio		9.56	%		9.27	%		8.25	%		9.56	%		8.25	%
Tangible common equity ratio⁽¹⁾		8.19	%		7.89	%		6.88	%		8.19	%		6.88	%
Credit Risk Profile:
Total nonperforming loans	$	37,192		$	17,470		$	25,128		$	37,192		$	25,128
Nonperforming loans ratio		0.85	%		0.41	%		0.59	%		0.85	%		0.59	%
Total nonperforming assets	$	40,606		$	20,889		$	31,181		$	40,606		$	31,181
Nonperforming assets ratio		0.66	%		0.33	%		0.47	%		0.66	%		0.47	%
Net charge-offs	$	189		$	3,087		$	524		$	3,276		$	713
Net charge-off ratio		0.02	%		0.29	%		0.05	%		0.15	%		0.03	%
Allowance for credit losses	$	65,800		$	53,900		$	53,900		$	65,800		$	53,900
Allowance for credit losses ratio		1.50	%		1.25	%		1.26	%		1.50	%		1.26	%
Allowance for credit losses to nonaccrual ratio		179.19	%		309.47	%		218.26	%		179.19	%		218.26	%

⁽¹⁾ Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

MIDWESTONE FINANCIAL GROUP, INC.
AVERAGE BALANCE SHEET AND YIELD ANALYSIS

	Three Months Ended
	June 30, 2025						March 31, 2025						June 30, 2024
(Dollars in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost
ASSETS
Loans, including fees ^(1)(2)(3)	$	4,370,196	$	63,298	5.81	%	$	4,290,710	$	60,443	5.71	%	$	4,419,697	$	62,581	5.69	%
Taxable investment securities		1,168,048		12,928	4.44	%		1,207,844		13,327	4.47	%		1,520,253		9,228	2.44	%
Tax-exempt investment securities ⁽²⁾⁽⁴⁾		102,792		859	3.35	%		105,563		865	3.32	%		322,092		2,040	2.55	%
Total securities held for investment⁽²⁾		1,270,840		13,787	4.35	%		1,313,407		14,192	4.38	%		1,842,345		11,268	2.46	%
Other		104,628		1,517	5.82	%		124,133		1,247	4.07	%		20,452		242	4.76	%
Total interest earning assets⁽²⁾	$	5,745,664	$	78,602	5.49	%	$	5,728,250	$	75,882	5.37	%	$	6,282,494	$	74,091	4.74	%
Other assets		426,985						440,296						431,079
Total assets	$	6,172,649					$	6,168,546					$	6,713,573
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest checking deposits	$	1,221,266	$	2,101	0.69	%	$	1,240,586	$	2,127	0.70	%	$	1,297,356	$	3,145	0.97	%
Money market deposits		986,029		6,057	2.46	%		1,002,743		6,333	2.56	%		1,072,688		7,821	2.93	%
Savings deposits		843,223		3,161	1.50	%		835,731		3,057	1.48	%		738,773		2,673	1.46	%
Time deposits		1,436,301		14,346	4.01	%		1,397,595		13,967	4.05	%		1,470,956		15,303	4.18	%
Total interest bearing deposits		4,486,819		25,665	2.29	%		4,476,655		25,484	2.31	%		4,579,773		28,942	2.54	%
Securities sold under agreements to repurchase		896		1	0.45	%		2,705		5	0.75	%		5,300		10	0.76	%
Other short-term borrowings		—		18	—	%		—		20	—	%		442,546		5,399	4.91	%
Total short-term borrowings		896		19	8.51	%		2,705		25	3.75	%		447,846		5,409	4.86	%
Long-term debt		112,035		1,754	6.28	%		113,364		1,791	6.41	%		120,256		2,078	6.95	%
Total borrowed funds		112,931		1,773	6.30	%		116,069		1,816	6.35	%		568,102		7,487	5.30	%
Total interest bearing liabilities	$	4,599,750	$	27,438	2.39	%	$	4,592,724	$	27,300	2.41	%	$	5,147,875	$	36,429	2.85	%
Noninterest bearing deposits		912,097						922,164						935,151
Other liabilities		73,094						82,280						96,553
Shareholders’ equity		587,708						571,378						533,994
Total liabilities and shareholders’ equity	$	6,172,649					$	6,168,546					$	6,713,573
Net interest income⁽²⁾			$	51,164					$	48,582					$	37,662
Net interest spread⁽²⁾					3.10	%					2.96	%					1.89	%
Net interest margin⁽²⁾					3.57	%					3.44	%					2.41	%

Total deposits⁽⁵⁾	$	5,398,916	$	25,665	1.91	%	$	5,398,819	$	25,484	1.91	%	$	5,514,924	$	28,942	2.11	%
Cost of funds⁽⁶⁾					2.00	%					2.01	%					2.41	%

(1) Average balance includes nonaccrual loans. (2) Tax equivalent. The federal statutory tax rate utilized was 21%. (3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $272 thousand, $256 thousand, and $337 thousand for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Loan purchase discount accretion was $1.1 million, $1.2 million, and $1.3 million for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. Tax equivalent adjustments were $1.0 million, $981 thousand, and $938 thousand for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. The federal statutory tax rate utilized was 21%. (4) Interest income includes tax equivalent adjustments of $160 thousand, $162 thousand, and $377 thousand for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively. The federal statutory tax rate utilized was 21%. (5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits. (6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.

MIDWESTONE FINANCIAL GROUP, INC.
AVERAGE BALANCE SHEET AND YIELD ANALYSIS

	Six Months Ended
	June 30, 2025						June 30, 2024
(Dollars in thousands)	Average Balance		Interest Income/ Expense		Average Yield/ Cost		Average Balance		Interest Income/ Expense		Average Yield/ Cost
ASSETS
Loans, including fees ^(1)(2)(3)	$	4,330,659	$	123,741	5.76	%	$	4,358,957	$	121,448	5.60	%
Taxable investment securities		1,187,836		26,255	4.46	%		1,538,928		18,688	2.44	%
Tax-exempt investment securities ⁽²⁾⁽⁴⁾		104,170		1,724	3.34	%		325,414		4,137	2.56	%
Total securities held for investment⁽²⁾		1,292,006		27,979	4.37	%		1,864,342		22,825	2.46	%
Other		114,327		2,764	4.88	%		25,529		660	5.20	%
Total interest earning assets⁽²⁾	$	5,736,992	$	154,484	5.43	%	$	6,248,828	$	144,933	4.66	%
Other assets		433,617						425,648
Total assets	$	6,170,609					$	6,674,476
LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest checking deposits	$	1,230,873	$	4,228	0.69	%	$	1,299,413	$	6,035	0.93	%
Money market deposits		994,340		12,390	2.51	%		1,087,616		15,886	2.94	%
Savings deposits		839,498		6,218	1.49	%		716,458		4,720	1.32	%
Time deposits		1,417,054		28,313	4.03	%		1,458,969		30,027	4.14	%
Total interest bearing deposits		4,481,765		51,149	2.30	%		4,562,456		56,668	2.50	%
Securities sold under agreements to repurchase		1,795		6	0.67	%		5,315		21	0.79	%
Other short-term borrowings		—		38	—	%		426,036		10,363	4.89	%
Total short-term borrowings		1,795		44	4.94	%		431,351		10,384	4.84	%
Long-term debt		112,696		3,545	6.34	%		121,761		4,181	6.91	%
Total borrowed funds		114,491		3,589	6.32	%		553,112		14,565	5.30	%
Total interest bearing liabilities	$	4,596,256	$	54,738	2.40	%	$	5,115,568	$	71,233	2.80	%
Noninterest bearing deposits		917,103						935,564
Other liabilities		77,662						92,581
Shareholders’ equity		579,588						530,763
Total liabilities and shareholders’ equity	$	6,170,609					$	6,674,476
Net interest income⁽²⁾			$	99,746					$	73,700
Net interest spread⁽²⁾					3.03	%					1.86	%
Net interest margin⁽²⁾					3.51	%					2.37	%

Total deposits⁽⁵⁾	$	5,398,868	$	51,149	1.91	%	$	5,498,020	$	56,668	2.07	%
Cost of funds⁽⁶⁾					2.00	%					2.37	%

(1) Average balance includes nonaccrual loans. (2) Tax equivalent. The federal statutory tax rate utilized was 21%. (3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $528 thousand and $574 thousand for the six months ended June 30, 2025 and June 30, 2024, respectively. Loan purchase discount accretion was $2.3 million and $2.4 million for the six months ended June 30, 2025 and June 30, 2024, respectively. Tax equivalent adjustments were $2.0 million and $1.9 million for the six months ended June 30, 2025 and June 30, 2024, respectively. The federal statutory tax rate utilized was 21%. (4) Interest income includes tax equivalent adjustments of $0.3 million and $0.8 million for the six months ended June 30, 2025 and June 30, 2024, respectively. The federal statutory tax rate utilized was 21%. (5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits. (6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.

Non-GAAP Measures

This earnings release contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, return on average tangible equity, net interest margin (tax equivalent), core net interest margin, loan yield (tax equivalent), core yield on loans, efficiency ratio, adjusted earnings and adjusted earnings per share, and pre-tax pre-provision net revenue. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP measure.

Tangible Common Equity/Tangible Book Value
per Share/Tangible Common Equity Ratio	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands, except per share data)		2025			2025			2024			2024			2024
Total shareholders’ equity	$	589,040		$	579,625		$	559,696		$	562,238		$	543,286
Intangible assets, net		(92,147	)		(93,399	)		(94,807	)		(96,257	)		(97,327	)
Tangible common equity	$	496,893		$	486,226		$	464,889		$	465,981		$	445,959

Total assets	$	6,160,773		$	6,254,394		$	6,236,329		$	6,552,482		$	6,581,658
Intangible assets, net		(92,147	)		(93,399	)		(94,807	)		(96,257	)		(97,327	)
Tangible assets	$	6,068,626		$	6,160,995		$	6,141,522		$	6,456,225		$	6,484,331

Book value per share	$	28.36		$	27.85		$	26.94		$	27.06		$	34.44
Tangible book value per share⁽¹⁾	$	23.92		$	23.36		$	22.37		$	22.43		$	28.27
Shares outstanding		20,769,577			20,815,715			20,777,485			20,774,919			15,773,468

Common equity ratio		9.56	%		9.27	%		8.97	%		8.58	%		8.25	%
Tangible common equity ratio⁽²⁾		8.19	%		7.89	%		7.57	%		7.22	%		6.88	%

(1) Tangible common equity divided by shares outstanding. (2) Tangible common equity divided by tangible assets.

	Three Months Ended									Six Months Ended
Return on Average Tangible Equity	June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands)		2025			2025			2024			2025			2024
Net income	$	9,980		$	15,138		$	15,819		$	25,118		$	19,088
Intangible amortization, net of tax⁽¹⁾		931			1,047			1,195			1,978			2,423
Tangible net income	$	10,911		$	16,185		$	17,014		$	27,096		$	21,511

Average shareholders’ equity	$	587,708		$	571,378		$	533,994		$	579,588		$	530,763
Average intangible assets, net		(92,733	)		(94,169	)		(99,309	)		(93,447	)		(97,302	)
Average tangible equity	$	494,975		$	477,209		$	434,685		$	486,141		$	433,461

Return on average equity		6.81	%		10.74	%		11.91	%		8.74	%		7.23	%
Return on average tangible equity⁽²⁾		8.84	%		13.75	%		15.74	%		11.24	%		9.98	%

(1) The income tax rate utilized was the blended marginal tax rate. (2) Annualized tangible net income divided by average tangible equity.

Net Interest Margin, Tax Equivalent/ Core Net Interest Margin	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands)		2025			2025			2024			2025			2024
Net interest income	$	49,982		$	47,439		$	36,347		$	97,421		$	71,078
Tax equivalent adjustments:
Loans⁽¹⁾		1,022			981			938			2,003			1,858
Securities⁽¹⁾		160			162			377			322			764
Net interest income, tax equivalent	$	51,164		$	48,582		$	37,662		$	99,746		$	73,700
Loan purchase discount accretion		(1,142	)		(1,166	)		(1,261	)		(2,308	)		(2,413	)
Core net interest income	$	50,022		$	47,416		$	36,401		$	97,438		$	71,287

Net interest margin		3.49	%		3.36	%		2.33	%		3.42	%		2.29	%
Net interest margin, tax equivalent⁽²⁾		3.57	%		3.44	%		2.41	%		3.51	%		2.37	%
Core net interest margin⁽³⁾		3.49	%		3.36	%		2.33	%		3.42	%		2.29	%
Average interest earning assets	$	5,745,664		$	5,728,250		$	6,282,494		$	5,736,992		$	6,248,828

(1) The federal statutory tax rate utilized was 21%. (2) Annualized tax equivalent net interest income divided by average interest earning assets. (3) Annualized core net interest income divided by average interest earning assets.

	Three Months Ended									Six Months Ended
Loan Yield, Tax Equivalent / Core Yield on Loans	June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands)		2025			2025			2024			2025			2024
Loan interest income, including fees	$	62,276		$	59,462		$	61,643		$	121,738		$	119,590
Tax equivalent adjustment⁽¹⁾		1,022			981			938			2,003			1,858
Tax equivalent loan interest income	$	63,298		$	60,443		$	62,581		$	123,741		$	121,448
Loan purchase discount accretion		(1,142	)		(1,166	)		(1,261	)		(2,308	)		(2,413	)
Core loan interest income	$	62,156		$	59,277		$	61,320		$	121,433		$	119,035

Yield on loans		5.72	%		5.62	%		5.61	%		5.67	%		5.52	%
Yield on loans, tax equivalent⁽²⁾		5.81	%		5.71	%		5.69	%		5.76	%		5.60	%
Core yield on loans⁽³⁾		5.70	%		5.60	%		5.58	%		5.65	%		5.49	%
Average loans	$	4,370,196		$	4,290,710		$	4,419,697		$	4,330,659		$	4,358,957

(1) The federal statutory tax rate utilized was 21%. (2) Annualized tax equivalent loan interest income divided by average loans. (3) Annualized core loan interest income divided by average loans.

	Three Months Ended									Six Months Ended
Efficiency Ratio	June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands)		2025			2025			2024			2025			2024
Total noninterest expense	$	35,767		$	36,293		$	35,761		$	72,060		$	71,326
Amortization of intangibles		(1,252	)		(1,408	)		(1,593	)		(2,660	)		(3,230	)
Merger-related expenses		—			(40	)		(854	)		(40	)		(2,168	)
Noninterest expense used for efficiency ratio	$	34,515		$	34,845		$	33,314		$	69,360		$	65,928

Net interest income, tax equivalent⁽¹⁾	$	51,164		$	48,582		$	37,662		$	99,746		$	73,700
Plus: Noninterest income		10,249			10,136			21,554			20,385			31,304
Less: Investment securities gains, net		—			33			33			33			69
Net revenues used for efficiency ratio	$	61,413		$	58,685		$	59,183		$	120,098		$	104,935

Efficiency ratio ⁽²⁾		56.20	%		59.38	%		56.29	%		57.75	%		62.83	%

(1) The federal statutory tax rate utilized was 21%. (2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities gains.

	Three Months Ended								Six Months Ended
Adjusted Earnings	June 30,			March 31,			June 30,		June 30,			June 30,
(Dollars in thousands, except per share data)		2025			2025			2024		2025			2024
Net income	$	9,980		$	15,138		$	15,819	$	25,118		$	19,088
Less: Investment securities gains, net of tax⁽¹⁾		—			25			24		24			51
Less: Mortgage servicing rights (loss) gain, net of tax⁽¹⁾		(196	)		(158	)		96		(355	)		(177	)
Plus: Merger-related expenses, net of tax⁽¹⁾		—			30			634		30			1,608
Less: Gain on branch sale, net of tax⁽¹⁾		—			—			8,201		—			8,201
Adjusted earnings	$	10,176		$	15,301		$	8,132	$	25,479		$	12,621

Weighted average diluted common shares outstanding		20,843			20,849			15,781		20,846			15,775

Earnings per common share – diluted	$	0.48		$	0.73		$	1.00	$	1.20		$	1.21
Adjusted earnings per common share⁽²⁾	$	0.49		$	0.73		$	0.52	$	1.22		$	0.80

(1) The income tax rate utilized was the blended marginal tax rate. (2) Adjusted earnings divided by weighted average diluted common shares outstanding.

	For the Three Months Ended									Year Ended
Pre-tax Pre-provision Net Revenue	June 30,			March 31,			June 30,			June 30,			June 30,
(Dollars in thousands)		2025			2025			2024			2025			2024
Net interest income	$	49,982		$	47,439		$	36,347		$	97,421		$	71,078
Noninterest income		10,249			10,136			21,554			20,385			31,304
Noninterest expense		(35,767	)		(36,293	)		(35,761	)		(72,060	)		(71,326	)
Pre-tax Pre-provision Net Revenue	$	24,464		$	21,282		$	22,140		$	45,746		$	31,056

Category: Earnings
This news release may be downloaded from Corporate Profile | MidWestOne Financial Group, Inc.

Source: MidWestOne Financial Group, Inc.

Industry: Banks

Contacts:
Charles N. Reeves	Barry S. Ray
Chief Executive Officer	Chief Financial Officer
319.356.5800	319.356.5800

The MIL Network –

July 25, 2025

MIL-OSI: Bel Reports Second Quarter and First Half 2025 Results

Source: GlobeNewswire (MIL-OSI)

WEST ORANGE, N.J., July 24, 2025 (GLOBE NEWSWIRE) — Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today announced preliminary financial results for the second quarter and first half of 2025.

Second Quarter 2025 Highlights

Net sales of $168.3 million compared to $133.2 million in Q2-24. Up 26.3% from Q2-24
Gross profit margin of 38.7%, compared to 40.1% in Q2-24
GAAP net earnings attributable to Bel shareholders of $26.9 million versus GAAP net earnings attributable to Bel shareholders of $18.8 million in Q2-24
Adjusted EBITDA of $35.2 million (20.9% of sales) as compared to $27.7 million (20.8% of sales) in Q2-24
Gain of $4.1 million on Sale of Glen Rock, PA building

“We are pleased with our second quarter results, which exceeded expectations due to improved on-time shipments and enhanced intraquarter turns, reinforcing our thesis of growth for the year,” said Farouq Tuweiq, President and CEO. “Gross margins aligned with guidance, reflecting operational stability. Strength was evident in defense and commercial aerospace applications, alongside a rebound in networking and distribution sales in certain segments, signaling recovery after nearly two years of inventory destocking.

“Tariffs minimally impacted performance, resulting in only $2.2 million of low-margin sales during the second quarter. We believe our ability to achieve solid results in uncertain times validates our strategic approach. For Q3, based on information available today, we anticipate net sales of $165-$180 million and gross margins of 37%-39%, driven by strong Q2 bookings and sequential growth expected in the second half.”

“We remain optimistic about delivering value to our customers and shareholders as we navigate the evolving market dynamics,” concluded Mr. Tuweiq.

Non-GAAP financial measures, such as Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA, adjust corresponding GAAP measures for provision for income taxes, other income/expense, net, interest income/expense, and depreciation and amortization, and also exclude, where applicable for the covered period presented in the financial statements, certain unusual or special items identified by management such as restructuring charges, gains/losses on sales of businesses and properties, acquisition related costs, impairment charges, noncontrolling interest (“NCI”) adjustments from fair value to redemption value, and certain litigation costs. In addition, in the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented. Please refer to the financial information included with this press release for reconciliations of GAAP financial measures to Non-GAAP financial measures and our explanation of why we present Non-GAAP financial measures.

Conference Call
Bel has scheduled a conference call for 8:30 a.m. ET on Friday, July 25, 2025 to discuss these results. To participate in the conference call, investors should dial 877-407-0784, or 201-689-8560 if dialing internationally. The presentation will additionally be broadcast live over the Internet and will be available at https://ir.belfuse.com/events-and-presentations. The webcast will be available via replay for a period of at least 30 days at this same Internet address. For those unable to access the live call, a telephone replay will be available at 844-512-2921, or 412-317-6671 if dialing internationally, using access code 13754675 after 12:30 pm ET, also for 30 days.

About Bel
Bel (www.belfuse.com) designs, manufactures and markets a broad array of products that power, protect and connect electronic circuits. These products are primarily used in the networking, telecommunications, computing, general industrial, high-speed data transmission, defense, commercial aerospace, transportation and eMobility industries. Bel’s portfolio of products also finds application in the automotive, medical, broadcasting and consumer electronics markets. Bel’s product groups include Power Solutions and Protection (front-end, board-mount and industrial power products, module products and circuit protection), Connectivity Solutions (expanded beam fiber optic, copper-based, RF and RJ connectors and cable assemblies), and Magnetic Solutions (integrated connector modules, power transformers, power inductors and discrete components). The Company operates facilities around the world.

Company Contact:
Lynn Hutkin
Chief Financial Officer
ir@belf.com

Investor Contact:
Three Part Advisors
Jean Marie Young, Managing Director or Steven Hooser, Partner
631-418-4339
jyoung@threepa.com; shooser@threepa.com

Cautionary Language Concerning Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our guidance for the third quarter of 2025; our statements regarding our expectations for future periods generally including anticipated financial performance, projections and trends for the remainder of the 2025 year ahead and other future periods; our statements regarding future events, performance, plans, intentions, beliefs, expectations and estimates, including statements regarding matters such as trends and expectations as to our sales, volumes, gross margin, products, product groups, customers, geographies and end markets; statements about uncertainty of the evolving tariff landscape, associated difficulties in forecasting, the Company’s estimates concerning Bel’s global sales and recently imposed tariffs, and the Company’s intention to continue to monitor the tariff landscape and assess potential alternatives; statements about anticipated continued strength in certain end markets, and views on the effects on the Company’s overall future performance; and statements regarding our expectations and beliefs regarding trends in the Company’s business and industry and the markets in which Bel operates, and about broader market trends and the macroeconomic environment generally, and other statements regarding the Company’s positioning, its strategies, future progress, investments, plans, targets, goals, and other focuses and initiatives, and the expected timing and potential benefits thereof. These forward-looking statements are made as of the date of this release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “forecast,” “outlook,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Bel’s control. Bel’s actual results could differ materially from those stated or implied in our forward-looking statements (including without limitation any of Bel’s projections) due to a number of factors, including but not limited to, difficulties associated with integrating previously acquired companies, including any unanticipated difficulties, or unexpected or higher than anticipated expenditures, relating to Bel’s November 2024 acquisition of Enercon, and including, without limitation, the risk that Bel is unable to integrate the Enercon business successfully or difficulties that result in the failure to realize the expected benefits and synergies within the expected time period (if at all); the possibility that the Bel’s intended acquisition of the remaining 20% stake in Enercon is not completed in accordance with the shareholders agreement as contemplated for any reason, and any resulting disruptions to Bel’s business and its currently 80% owned Enercon subsidiary as a result thereof; trends in demand which can affect Bel’s products and results, including that demand in Enercon’s end markets can be cyclical, impacting the demand for Enercon’s products, which could be materially adversely affected by reductions in defense spending; the market concerns facing Bel’s customers, and risks for the Company’s business in the event of the loss of certain substantial customers; the continuing viability of sectors that rely on Bel’s products; the effects of business and economic conditions, and challenges impacting the macroeconomic environment generally and/or Bel’s industry in particular; the effects of rising input costs, and cost changes generally, including the potential impact of inflationary pressures; capacity and supply constraints or difficulties, including supply chain constraints or other challenges; the impact of public health crises; difficulties associated with the availability of labor, and the risks of any labor unrest or labor shortages; risks associated with Bel’s international operations, including Bel’s substantial manufacturing operations in China, and following Bel’s November 2024 acquisition of Enercon , risks associated with operations in Israel, which may be adversely affected by political or economic instability, major hostilities or acts of terrorism in the region; risks associated with restructuring programs or other strategic initiatives, including any difficulties in implementation or realization of the expected benefits or cost savings; product development, commercialization or technological difficulties; the regulatory and trade environment including the potential effects of the imposition or modification of new or increased tariffs either by the U.S. government on foreign foreign imports or by a foreign government on U.S. exports related to the countries in which Bel transacts business and trade restrictions that may impact Bel, its customers and/or its suppliers, and risks associated with the evolving trade environment, trade restrictions, and changes in trade agreements, and general uncertainty about future changes in trade and tariff policy and the associated impacts of those changes; risks associated with fluctuations in foreign currency exchange rates and interest rates; uncertainties associated with legal proceedings; the market’s acceptance of the Company’s new products and competitive responses to those new products; the impact of changes to U.S. and applicable foreign legal and regulatory requirements, including tax laws; and the risks detailed in Bel’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in subsequent reports filed by Bel with the Securities and Exchange Commission, as well as other documents that may be filed by Bel from time to time with the Securities and Exchange Commission. In light of the risks and uncertainties impacting Bel’s business, there can be no assurance that any forward-looking statement will in fact prove to be correct. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Bel’s views as of the date of this press release. Bel anticipates that subsequent events and developments will cause its views to change. Bel undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Bel’s views as of any date subsequent to the date of this press release.

Non-GAAP Financial Measures
The Non-GAAP financial measures identified in this press release as well as in the supplementary information to this press release (Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA) are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”). These measures should not be considered a substitute for, and the reader should also consider, income from operations, net earnings, earnings per share and other measures of performance as defined by GAAP as indicators of our performance or profitability. Our non-GAAP measures may not be comparable to other similarly-titled captions of other companies due to differences in the method of calculation. We present results adjusted to exclude the effects of certain unusual or special items and their related tax impact that would otherwise be included under U.S. GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. For additional information about our use of non-GAAP financial measures in connection with our Incentive Compensation Program, please see the Executive Compensation Discussion and Analysis (CD&A) section appearing in our Definitive Proxy Statement filed with the Securities and Exchange Commission on April 11, 2025.

Website Information
We routinely post important information for investors on our website, www.belfuse.com, in the “Investor Relations” section. We use our website as a means of disclosing material, otherwise non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, Securities and Exchange Commission (SEC) filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

[Financial tables follow]


Bel Fuse Inc. Supplementary Information⁽¹⁾ Condensed Consolidated Statements of Operations (in thousands, except per share amounts) (unaudited)

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

Net sales	$	168,299		$	133,205		$	320,537		$	261,295
Cost of sales		103,216			79,809			196,635			159,821
Gross profit		65,083			53,396			123,902			101,474
As a % of net sales		38.7	%		40.1	%		38.7	%		38.8	%

Research and development costs		8,104			5,994			15,326			11,209
Selling, general and administrative expenses		30,914			24,141			60,421			49,085
As a % of net sales		18.4	%		18.1	%		18.8	%		18.8	%
Restructuring charges		280			638			(2,653	)		703
Gain on sale of property		(4,075	)		–			(4,075	)		–
Income from operations		29,860			22,623			54,883			40,477
As a % of net sales		17.7	%		17.0	%		17.1	%		15.5	%

Interest expense		(3,993	)		(415	)		(8,145	)		(849	)
Interest income		264			1,146			539			2,261
Other income (expense), net		7,568			(471	)		10,207			1,346
Earnings before income taxes		33,699			22,883			57,484			43,235

Provision for income taxes		6,906			4,077			12,369			8,555
Effective tax rate		20.5	%		17.8	%		21.5	%		19.8	%
Net earnings	$	26,793		$	18,806		$	45,115		$	34,680
As a % of net sales		15.9	%		14.1	%		14.1	%		13.3	%

Less: Net earnings attributable to noncontrolling interest		822			–			1,660			–
Redemption value adjustment attributable to noncontrolling interest		(890	)		–			(1,280	)		–
Net earnings attributable to Bel Fuse Shareholders	$	26,861		$	18,806		$	44,735		$	34,680

Weighted average number of shares outstanding:
Class A common shares – basic and diluted		2,115			2,124			2,115			2,131
Class B common shares – basic and diluted		10,551			10,492			10,504			10,551

Net earnings per common share:
Class A common shares – basic and diluted	$	2.03		$	1.43		$	3.39		$	2.61
Class B common shares – basic and diluted	$	2.14		$	1.50		$	3.58		$	2.76

(1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.

Bel Fuse Inc. Supplementary Information⁽¹⁾ Condensed Consolidated Balance Sheets (in thousands, unaudited)

	June 30, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	59,284	$	68,253
Held to maturity U.S. Treasury securities		–		950
Accounts receivable, net		121,241		111,376
Inventories		164,648		161,370
Other current assets		33,442		31,581
Total current assets		378,615		373,530
Property, plant and equipment, net		48,704		47,879
Right-of-use assets		23,930		25,125
Related-party note receivable		3,715		2,937
Equity method investment		10,284		9,265
Goodwill and other intangible assets, net		436,292		439,984
Other assets		49,040		51,069
Total assets	$	950,580	$	949,789

Total liabilities, redeemable noncontrolling interests and stockholders’ equity
Current liabilities:
Accounts payable	$	53,685	$	49,182
Operating lease liability, current		8,688		7,954
Other current liabilities		61,709		70,933
Total current liabilities		124,082		128,069
Long-term debt		250,000		287,500
Operating lease liability, long-term		16,387		17,763
Other liabilities		74,402		75,295
Total liabilities		464,871		508,627
Redeemable noncontrolling interests		80,966		80,586
Stockholders’ equity		404,743		360,576
Total liabilities, redeemable noncontrolling interests and stockholders’ equity	$	950,580	$	949,789

(1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.

Bel Fuse Inc. Supplementary Information⁽¹⁾ Condensed Consolidated Statements of Cash Flows (in thousands, unaudited)

	Six Months Ended
	June 30,
	2025			2024

Cash flows from operating activities:
Net earnings	$	45,115		$	34,680
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		13,284			7,123
Stock-based compensation		2,900			1,775
Amortization of deferred financing costs		692			27
Deferred income taxes		(861	)		(2,930	)
Net unrealized gains on foreign currency revaluation		(12,913	)		(355	)
Gain on sale of property		(4,075	)		–
Other, net		1,595			652
Changes in operating assets and liabilities:
Accounts receivable, net		(8,203	)		2,805
Unbilled receivables		(1,400	)		6,887
Inventories		(122	)		7,972
Accounts payable		3,511			(4,026	)
Accrued expenses		(8,641	)		(14,147	)
Accrued restructuring costs		(5,075	)		(1,553	)
Income taxes payable		2,143			4,517
Other operating assets/liabilities, net		914			(5,083	)
Net cash provided by operating activities		28,864			38,344

Cash flows from investing activities:
Purchases of property, plant and equipment		(6,718	)		(4,278	)
Purchases of held to maturity U.S. Treasury securities		–			(122,345	)
Proceeds from held to maturity securities		950			101,071
Investment in related party notes receivable		(778	)		(633	)
Proceeds from sale of property, plant and equipment		4,867			229
Net cash used in investing activities		(1,679	)		(25,956	)

Cash flows from financing activities:
Dividends paid to common stockholders		(1,660	)		(1,674	)
Deferred financing costs		(681	)		–
Repayments of long-term debt		(42,500	)		–
Proceeds of long-term debt		5,000			–
Purchases of common stock		–			(14,175	)
Net cash used in financing activities		(39,841	)		(15,849	)

Effect of exchange rate changes on cash and cash equivalents		3,687			(934	)

Net decrease in cash and cash equivalents		(8,969	)		(4,395	)
Cash and cash equivalents – beginning of period		68,253			89,371
Cash and cash equivalents – end of period	$	59,284		$	84,976


Supplementary information:
Cash paid during the period for:
Income taxes, net of refunds received	$	11,422		$	8,277
Interest payments	$	8,188		$	1,985
ROU assets obtained in exchange for lease obligations	$	1,502		$	4,239

(1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.

Bel Fuse Inc. Supplementary Information⁽¹⁾ Product Group Highlights (dollars in thousands, unaudited)

	Sales							Gross Margin
	Q2-25		Q2-24		% Change			Q2-25			Q2-24			Basis Point Change
Power Solutions and Protection	$	86,799	$	58,551		48.2	%		41.9	%		45.7	%		(380	)
Connectivity Solutions		59,202		57,822		2.4	%		39.2	%		38.9	%		30
Magnetic Solutions		22,298		16,832		32.5	%		28.7	%		26.4	%		230
Total	$	168,299	$	133,205		26.3	%		38.7	%		40.1	%		(140	)

	Sales							Gross Margin
	YTD June 2025		YTD June 2024		% Change			YTD June 2025			YTD June 2024			Basis Point Change
Power Solutions and Protection	$	169,853		118,798		43.0	%		42.2	%		44.8	%		(260	)
Connectivity Solutions		109,932		112,107		-1.9	%		38.6	%		37.6	%		100
Magnetic Solutions		40,752		30,390		34.1	%		26.9	%		21.8	%		510
Total	$	320,537	$	261,295		22.7	%		38.7	%		38.8	%		(10	)

(1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.

Bel Fuse Inc. Supplementary Information⁽¹⁾ Reconciliation of GAAP Net Earnings to Non-GAAP Operating Income and Adjusted EBITDA⁽²⁾⁽³⁾ (in thousands, unaudited)

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

GAAP Net earnings	$	26,793		$	18,806		$	45,115		$	34,680
Provision for income taxes		6,906			4,077			12,369			8,555
Other income/expense, net		(7,568	)		471			(10,207	)		(1,346	)
Interest income		(264	)		(1,146	)		(539	)		(2,261	)
Interest expense		3,993			415			8,145			849
GAAP Operating Income	$	29,860		$	22,623		$	54,883		$	40,477
Restructuring charges		280			638			(2,653	)		703
Amortization of inventory step-up		799			–			1,757			–
Gain on sale of property		(4,075	)		–			(4,075	)		–
Stock-based compensation		1,721			971			2,900			1,775
Non-GAAP Operating Income	$	28,585		$	24,232		$	52,812		$	42,955
Depreciation and amortization		6,600			3,439			13,284			7,123
Adjusted EBITDA	$	35,185		$	27,671		$	66,096		$	50,078
% of net sales		20.9	%		20.8	%		20.6	%		19.2	%

(1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
(2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.
(3) In the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented.

Bel Fuse Inc. Supplementary Information⁽¹⁾ Reconciliation of GAAP Measures to Non-GAAP Measures⁽²⁾⁽⁴⁾ (in thousands, except per share data) (unaudited)

The following tables detail the impact that certain unusual or special items had on the Company’s net earnings per common Class A and Class B basic and diluted shares (“EPS”) and the line items in which these items were included on the consolidated statements of operations.

	Three Months Ended June 30, 2025															Three Months Ended June 30, 2024
Reconciling Items	Earnings before taxes			Provision for income taxes			Net Earnings Attributable to Bel Fuse Shareholders			Class A EPS⁽³⁾			Class B EPS⁽³⁾			Earnings before taxes		Provision for income taxes		Net Earnings Attributable to Bel Fuse Shareholders		Class A EPS⁽³⁾		Class B EPS⁽³⁾

GAAP measures	$	33,699		$	6,906		$	26,861		$	2.03		$	2.14		$	22,883	$	4,077	$	18,806	$	1.43	$	1.50
Restructuring charges		280			48			232			0.02			0.02			638		153		485		0.04		0.04
Redemption value adjustment on redeemable NCI		–			–			(890	)		(0.07	)		(0.07	)		–		–		–		–		–
Amortization of inventory step-up		799			184			615			0.05			0.05			–		–		–		–		–
Gain on sale of property		(4,075	)		(937	)		(3,138	)		(0.24	)		(0.25	)		–		–		–		–		–
Stock-based compensation		1,721			354			1,367			0.10			0.11			972		200		772		0.06		0.06
Amortization of intangibles		3,697			647			3,050			0.23			0.24			1,148		239		909		0.07		0.07
Unrealized foreign currency exchange (gains) losses		(9,250	)		(2,127	)		(7,123	)		(0.54	)		(0.57	)		370		80		290		0.02		0.02
Non-GAAP measures	$	26,871		$	5,075		$	20,974		$	1.58		$	1.67		$	26,011	$	4,749	$	21,262	$	1.61	$	1.70

	Six Months Ended June 30, 2025															Six Months Ended June 30, 2024
Reconciling Items	Earnings before taxes			Provision for income taxes			Net Earnings Attributable to Bel Fuse Shareholders			Class A EPS⁽³⁾			Class B EPS⁽³⁾			Earnings before taxes			Provision for income taxes			Net Earnings Attributable to Bel Fuse Shareholders			Class A EPS⁽³⁾			Class B EPS⁽³⁾

GAAP measures	$	57,484		$	12,369		$	44,735		$	3.39		$	3.58		$	43,235		$	8,555		$	34,680		$	2.61		$	2.76
Restructuring charges		(2,653	)		(323	)		(2,330	)		(0.18	)		(0.19	)		703			163			540			0.04			0.04
Redemption value adjustment on redeemable NCI		–			–			(1,280	)		(0.10	)		(0.10	)		–			–			–			–			–
Amortization of inventory step-up		1,757			404			1,353			0.10			0.11			–			–			–			–			–
Gain on sale of property		(4,075	)		(937	)		(3,138	)		(0.24	)		(0.25	)		–			–			–			–			–
Stock-based compensation		2,900			597			2,303			0.18			0.18			1,776			366			1,410			0.11			0.11
Amortization of intangibles		7,383			1,295			6,088			0.46			0.49			2,542			503			2,039			0.15			0.16
Unrealized foreign currency exchange (gains) losses		(12,913	)		(2,995	)		(9,918	)		(0.75	)		(0.79	)		(529	)		(127	)		(402	)		(0.03	)		(0.03	)
Non-GAAP measures	$	49,883		$	10,410		$	37,813		$	2.86		$	3.02		$	47,727		$	9,460		$	38,267		$	2.89		$	3.04

⁽¹⁾The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
⁽²⁾In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.
⁽³⁾Individual amounts of earnings per share may not agree to the total due to rounding.
⁽⁴⁾In the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented.

The MIL Network –

July 25, 2025

MIL-OSI: NCS Multistage Holdings, Inc. Schedules Second Quarter 2025 Earnings Release and Conference Call

Source: GlobeNewswire (MIL-OSI)

HOUSTON, July 24, 2025 (GLOBE NEWSWIRE) — NCS Multistage Holdings, Inc. (“NCS” or the “Company”) (NASDAQ:NCSM) will host a conference call to discuss its second quarter 2025 results on Friday, August 1, 2025 at 7:30 a.m. Central Time (8:30 a.m. Eastern Time). NCS will issue its second quarter 2025 earnings release the evening prior to the conference call.

The conference call will be available via a live audio webcast. Participants who wish to ask questions may register for the call here to receive the dial-in numbers and unique PIN. If you wish to join the conference call but do not plan to ask questions, you may join the listen-only webcast here. It is recommended that participants join at least 10 minutes prior to the event start. The replay will be available in the Investors section of the Company’s website shortly after the conclusion of the call and will remain available for approximately seven days.

NCS Multistage Holdings, Inc. is a leading provider of highly engineered products and support services that facilitate the optimization of oil and natural gas well construction, well completions and field development strategies. NCS provides products and services primarily to exploration and production companies for use in onshore and offshore wells, predominantly wells that have been drilled with horizontal laterals in both unconventional and conventional oil and natural gas formations. NCS’s products and services are utilized in oil and natural gas basins throughout North America and in selected international markets, including the North Sea, the Middle East, Argentina and China. NCS’s common stock is traded on the Nasdaq Capital Market under the symbol “NCSM.” Additional information is available on the website, www.ncsmultistage.com.

Contact:
Mike Morrison
Chief Financial Officer and Treasurer
+1 281-453-2222
IR@ncsmultistage.com

The MIL Network –

July 25, 2025

MIL-OSI: James River Announces Director Appointment

Source: GlobeNewswire (MIL-OSI)

PEMBROKE, Bermuda, July 24, 2025 (GLOBE NEWSWIRE) — James River Group Holdings, Ltd. (“James River” or the “Company”) (NASDAQ: JRVR) today announced that Joel Cavaness has been appointed to the Company’s Board of Directors as an independent, non-executive member, effective immediately. Mr. Cavaness was also appointed to the Board’s Compensation and Human Capital Committee.

“Joel is an accomplished executive in the wholesale brokerage space and has successfully built high-performing distribution platforms throughout his career,” said Christine LaSala, Chair of James River’s Board of Directors. “His entrepreneurial mindset, extensive marketplace relationships, and decades of leadership experience align deeply with James River and will add helpful complementary perspective to our Board.”

Mr. Cavaness has nearly four decades of specialty property-and-casualty distribution experience. Most recently, he served as Chairman, Americas Specialty at Arthur J. Gallagher & Co. Prior to serving as Chairman, Mr. Cavaness was President of Risk Placement Services, Inc., which he co-founded in 1997. Earlier in his career, Mr. Cavaness held a series of leadership roles at Arthur J. Gallagher & Co. rising to Corporate Vice President and Division President of the Wholesale Brokerage Operation. He began his career as an underwriter with Crum & Forster Insurance Company. Additionally, Mr. Cavaness served on the Board of Directors of the Wholesale & Specialty Insurance Association for more than a decade.

Forward-Looking Statements

This press release contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, such forward-looking statements may be identified by terms such as believe, expect, seek, may, will, should, intend, project, anticipate, plan, estimate, guidance or similar words. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Information about these risks and uncertainties is contained in our filings with the U.S. Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K. These forward-looking statements speak only as of the date of this release and the Company does not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

About James River Group Holdings, Ltd.

James River Group Holdings, Ltd. is a Bermuda-based insurance holding company that owns and operates a group of specialty insurance companies. The Company operates in two specialty property-casualty insurance segments: Excess and Surplus Lines and Specialty Admitted Insurance. Each of the Company’s regulated insurance subsidiaries are rated “A-” (Excellent) by A.M. Best Company. Visit James River Group Holdings, Ltd. on the web at www.jrvrgroup.com.

Bob Zimardo
SVP, Investments & Investor Relations
InvestorRelations@james-river-group.com

The MIL Network –

July 25, 2025

MIL-OSI: Meriwest Credit Union Launches Zelle® for Fast, Secure, and Convenient Money Transfers

Source: GlobeNewswire (MIL-OSI)

SILICON VALLEY, Calif., July 24, 2025 (GLOBE NEWSWIRE) — Meriwest Credit Union is excited to announce the addition of Zelle® to its suite of digital banking services, enabling members to send and receive money quickly and securely. Zelle is now available through Meriwest’s mobile banking app, allowing members to transfer funds to friends, family, or trusted contacts in minutes, directly from their Meriwest accounts to almost any U.S. bank account.

Zelle offers a seamless way to split bills, pay rent, or send gifts, with no fees for standard transactions. Members can enroll using their email address or U.S. mobile phone number and start sending money to anyone with a U.S. bank account enrolled with Zelle. The service is designed for convenience, with most transactions completed within minutes when both parties are enrolled, and is backed by strong security measures to protect members’ financial information.

“Listening to our members’ needs is at the heart of what we do,” said Lisa Pesta, President and CEO of Meriwest Credit Union. “The introduction of Zelle reflects our commitment to providing innovative, member-focused solutions that make managing money easier and more convenient. We’re excited to offer this fast and secure way to move money, enhancing the banking experience for our community.”

To use Zelle, members can log into Meriwest’s mobile app, navigate to the “Send Money with Zelle®” option, and enroll with their preferred email address or U.S. mobile number. Members are encouraged to only send money to trusted individuals, as Zelle transactions are instant and typically irreversible. For detailed instructions or to learn more, visit www.meriwest.com/zelle or contact Meriwest’s member service team at (877) MERIWEST (637-4937).

Zelle® and the Zelle® related marks are wholly owned by Early Warning Services, LLC and are used herein under license. To send or receive money with Zelle®, both parties must have an eligible checking or savings account.

About Meriwest Credit Union
Founded in San Jose, California in 1961, Meriwest Credit Union, ($2.1B in assets) is one of Silicon Valley’s most established financial institutions. Dedicated to delivering advice-based, personal, convenient, and innovative financial services to over 80,000 families and businesses throughout the San Francisco Bay Area and Pima County, Arizona, Meriwest offers a wide array of personal banking, business services, and wealth advisory services. Meriwest has been voted one of the ‘Best Credit Unions in Silicon Valley’ in the Mercury News’ Annual ‘Readers’ Choice Awards’ and a “Best Place to Work” by the Silicon Valley Business Journal 2020 through 2024. More information can be found at www.meriwest.com.

About Zelle®
Zelle® is transforming how money moves, with more than five billion digital payments sent since its launch in 2017. The Zelle® network connects over 2,200 banks and credit unions of all sizes, enabling consumers and businesses to send digital payments to people and businesses they know and trust with an eligible bank account in the U.S. Money is available directly in bank accounts generally within minutes when the recipient is already enrolled with Zelle®. To learn more about Zelle® and participating financial institutions in the Zelle® network, visit www.zellepay.com.

Media Contact:
Jeffrey Zane
Meriwest Credit Union
Public Relations
408-612-1484
jzane@meriwest.com

The MIL Network –

July 25, 2025

MIL-OSI USA: Tuberville Chairs First HELP Subcommittee Hearing

US Senate News:

Source: United States Senator for Alabama Tommy Tuberville
WASHINGTON – Yesterday, U.S. Senator Tommy Tuberville (R-AL) led his first hearing as Chairman of the Health, Education, Labor, and Pensions (HELP) Subcommittee on Education and the American Family with lead advocates for reform in the nation’s educational system. During the hearing, entitled “Empowering Families for Better Educational Results,” witnesses underscored places where the current education system falls short, such as declining literacy rates and the lack of charter schools. Sen. Tuberville emphasized the importance of allowing parents to make choices when it comes to their children’s education and the legislation that will benefit teachers, parents, and children.
In effort to understand how to improve literacy across the nation, Sen. Tuberville and his Republican colleagues asked the witnesses what policies they believe should be implemented. The witnesses also discussed the preparation and professional development that would empower teachers in the classroom. Finally, Sen. Tuberville asked witnesses about the positive effects that charter schools can have on communities.
Witnesses included:
Mr. Tyler Barnett, CEO of New Schools for Alabama
Ms. Anne Wicks, Don Evans Family Managing Director Opportunity and Democracy George W. Bush Institute
Ms. Ginny Gentles, Director of Education Freedom and Parental Rights Defense of Freedom Institute
Mr. Richard Barrera, Board Vice President of San Diego Unified School District
Read excerpts of the transcript below or watch clips of the hearing on YouTube or Rumble.
OPENING STATEMENT:
TUBERVILLE: “Good afternoon. The Senate Committee on Health Education Labor and Pensions Subcommittee on Education and the American Family will come to order. Thanks for being here. As you can tell, we’re running a little late. It’s a little hectic on the hill today, but we will survive. This afternoon, we’re having a hearing on empowering families for better educational results. Ranking member Blunt Rochester and I will each have an opening statement. The witnesses will have five minutes for their opening statements, and senators will each have five minutes for questions.
We will obviously have senators coming in and out because [there are] many, many votes today. So, thank you to all the witnesses for being here today. It’s always nice to see a fellow Alabamian here today up here in the swamp. Thanks to Mr. Barnett for coming to visit today. We’ve called this hearing to discuss something very near and dear to my heart. One of the reasons I’m here. I was an educator for decades before I decided to come up here, and over those years, I saw the state of our education system decline. The federal government just kept spending more money and more money in K-12 education, and the more they spent, the worse outcomes became. It was just amazing me to watch it in real time, and it made no sense. It’s the main reason I chose to run for this office.
I didn’t want to see our kids fail year after year, then I got here and realized that we can fix it, but a lot of things are broken. Four years I’ve been serving here on the HELP Committee, and this year, I finally got this gavel to make sure we could have something like this to where we could bring these things to light. I wanted to focus on our kids’ educational outcomes and figure out where we were failing, and also, where we’re doing good things. That leads us to today.
That’s why we’re having this hearing.
We need to take a good, hard look at our K-12 education system and figure out [what we can do] to fix it, to make it better, because the status quo in a lot of areas is not cutting it. That means we need to think outside the box. Since COVID, parents have gotten a lot more engaged and that’s where all the necessary change can start, right at home, family. And, since parents have started paying more attention, they’ve started calling for more and more options.
Parents across our country are calling for their states to offer more options for their kids outside of failing school systems. States represented by folks on both sides of this dice are working on school choice options in their state legislature. We’ll hear about that issue from our witnesses today. Parents want these options, and we ought to listen to them. In my home state of Alabama last year, we passed the Choose Act, which created an income tax credit for families who choose to enroll their children in private schools or homeschooling.
Virginia, Florida, Alaska, Massachusetts, New Jersey, Indiana, and Washington are just a few states to name that have implemented or have pending state legislation to create these income tax credits promoting school choice. It’s simple. When we give our parents and students choice, we yield better educational results. We owe our kids this investment. But it doesn’t end there.
Right now, our kids in a lot of areas can’t read. We have kids entering middle school and high school who aren’t at a third grade reading level. I used to recruit kids. I’d bring them in with 3.5 GPAs. The next thing I know after testing them, they wouldn’t be [at a] sixth grade reading level. Something has got to change with that. States and governors across our country have taken up the literacy challenge and enacted legislation at the state level, where it should be. Ranking member Blunt Rochester’s home state of Delaware passed House Bill 304 that implemented reading assessments three times a school year for kids K-3, and my state passed the Alabama Literacy Act, which does the same thing. And we’re trying. No matter the state, this is a widespread effort, and we will discuss today the methods that are working.
We’ll talk about the science of reading and how best to implement. In our classrooms, we’ll hear about how we can invest in our teachers, invest to prepare them to tackle this crisis head-on. They need to be set up for success just as much as our students do. I want today to be an opportunity for this committee to have a conversation about what our states are doing, and what [we can] do to support them from here, from the federal level. Our children are the best resource this country has, the best thing we’ve got going.
And above all, we owe them one thing, an opportunity to succeed. And I look forward to working with all of you towards this common goal. Now, I yield to my ranking member, Senator Blunt Rochester, for her opening statement.”
[…]
ON HOW THE SUCCESS OF CHARTER SCHOOLS IMPACTS DISTRICT SCHOOLS:
TUBERVILLE: “Mr. Barnett, we’ve had tremendous growth in the number of students across American enrolling in charter schools. Over four million students to be exact. How does that success of charter schools impact our district public school system?”
BARNETT: “Thank you, Mr. Chairman. So, there are really two large national studies that speak to this. One comes out of the Progressive Policy Institute, and another comes out of the Forum Institute. Both actually show that the presence of charter schools has, in some way, improved outcomes within district schools. There’s a certain threshold that the Progressive Policy Institute’s study showed somewhere around 30%. So, the presence of charter schools that give up to 30% of students in a given market, the opportunity to enroll has [a] positive net impact on not only charter school performance, but also district performance.”
[…]
ON THE IMPORTANCE OF PREPARING OUR EDUCATORS TO TEACH THE SCIENCE OF READING METHOD:
TUBERVILLE: “Ms. Wicks, you talked about teacher preparedness and professional development in your testimony. How important is preparing our educators to teach the science of reading method?”
WICKS: “Senator, thank you for that important question. It’s critical that we give educators the right preparedness to understand this issue and be able to deploy it in their classrooms. I referenced in my opening remarks that only 25% of educator prep programs are currently teaching the science of reading to their aspiring teachers. And even worse, about 40% of them are teaching the wrong stuff. So, they’re teaching these brand-new teachers the wrong way to teach reading.
If they’re interested in more—the National Council on Teacher Quality put out that report. They’re the best at studying Teacher Prep programs. And I think this comes down to a matter of state leadership and accreditation.
They make some recommendations about the importance of setting state standards for what these programs need to be teaching. [We need to] have some way to measure that if it’s through accreditation or others.
And then to tie the state licensure exams to those standards, to ensure that those candidates have actually learned this and can do it in their classroom. And you see the same thing for sitting teachers who maybe never got this in their training and need that professional development.”
TUBERVILLE: “Thank you, Ms. Gentles, you know, on both sides of the argument whether President Trump and the Department of Education [is] undermining public school. And because of the work done to expand school choice, do you think there’s a truth to that argument?”
GENTLES: “Consistently studies show that when states have implemented school choice programs, the nearby public schools have benefited. So increasing competition inspires innovation, and a rising tide lifts all boats. So, we were pleased to see the Executive Order from the President supporting expanding school choice [and] educational freedom, and we’re also pleased to see the Executive Order ordering the Secretary of Education to look into dismantling the Department of Education within […] federal law and with the understanding that the Secretary will be working with Congress on that. Because we do think that […] freeing up states from federal regulations from monitoring, from compliance—all the time that all those bureaucrats at the state and district level are spending on federal paperwork is going to benefit public education. It’s going to benefit public school students. It’s going to benefit public school educators.”
TUBERVILLE: “Do you think we should give more power back to the states when it [comes to] education?”
GENTLES: “Absolutely. We need to give power to the states. I think we’ve heard such great news today on what strong state leaders—sensible state leaders—implementing common sense policies are doing. It’s very encouraging to see what’s happening.
We didn’t mention Louisiana, but Louisiana is a bright spot amidst the 2024 NAEP scores, the only state where fourth grade reading scores exceeded pre-COVID [grades].”
CASSIDY: “More so than Alabama?”
GENTLES: “Alabama’s pretty awesome too. It’s been referred to as the southern surge. There’s really good news coming out of the states and encouraging that, fostering that is absolutely the right direction. […] Education policies [are] set at the state level and let’s foster that and let’s get the federal government out of the way.”
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP and Aging Committees.

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: Tuberville Speaks to DOD Chief of Naval Operations Nominee

US Senate News:

Source: United States Senator for Alabama Tommy Tuberville
WASHINGTON – U.S. Senator Tommy Tuberville (R-AL) participated in a Senate Armed Services Committee hearing today to consider the nomination of Admiral Daryl Caudle to be Chief of Naval Operations. During the hearing, Sen. Tuberville and Admiral Caudle discussed the need to work with our allies as we work to improve our U.S. Naval capabilities, as well as the advantages of using unmanned vessels at sea.
Excerpts from the interview can be found below and the full interview can be viewed on YouTube or Rumble.
ON SHIPBUILDING WITH OUR ALLIES:
TUBERVILLE: “Thank you, Mr. Chairman. Admiral, congratulations. You’ve earned this. Looking forward to working with you. You know, we talk about shipbuilding, and we do a lot of that in my state of Alabama.
Now, we’re in the submarine business. But I was also in the education business. We’re 500,000 electricians short in this country. In mine and your lifetime, we can’t catch up. We’re gonna have to use our allies to help build some things.
What’s your thoughts about that? And, for instance, [South] Korea, they build 5 to our 1 keels. [What] are your thoughts on helping and working with our allies to help build ships in the future?”
CAUDLE: “Well, Senator, thanks for meeting with me. I enjoyed our time in your office. I wanna work with the Secretary of the Navy and the Department of Defense on looking at this hard. Again, I’ve said this is an all hands on deck [effort]. I don’t know how we do what we need to do without bringing international partners into the capacity problem that we have, while we build up our capacity because we need ships today.
And, so, there are no magic beans to that. There’s nothing that’s just gonna make that happen. So, the solution space has got to open up. And I think part of that has to look at international partnerships to give us a little bit of a relief valve while we work on our own organic industrial capacity.”
TUBERVILLE: “As you said, we need them yesterday. And again, this education problem is not going away. Our workforce problem is not going away. We gotta use the best that we know how. And we gotta build ships and we gotta build them fast. But they gotta be good ships, and I think working with our allies is gonna be one way for us to address this problem.”
ON SAIL DRONES:
TUBERVILLE: “What’s your thoughts on unmanned vessels like sail drones that we make in our state of Alabama. Are you familiar with those?”
CAUDLE: “Senator, I am familiar with them. Those are type of technologies that are crucial. Sail drones are part of the fabric of how we improve our Maritime Domain Awareness. You’ve, I’m sure, heard of the instantiations we’ve had with our Task Force 59 in the Arabian Gulf using those type of technologies. We’ve had them in the Gulf of America with our southern border watch. We’re using them there with [U.S.] Fourth Fleet and other places. So, yes, that’s a part of exactly what we need to network persistent capabilities where I don’t want manned vessels spending time just collecting things that unmanned can do much more affordably and effectively.”
TUBERVILLE: “Yeah. Those have been used well down in the Caribbean on the war on drugs. And we’re proud of how they worked, and we need to continue to expand that there. I don’t think there’s any doubt about that. A lot of eyes out there that we don’t have to man [with] people and train people, but it’s good that you go along with it. Thank you, Mr. Chairman.”
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP and Aging Committees.

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: Tuberville Introduces Huntsville’s Bill Roark During HELP Hearing

US Senate News:

Source: United States Senator for Alabama Tommy Tuberville
WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL)introduced Mr. Bill Roark of Huntsville, Alabama, as a witness appearing before the Senate Health, Education, Labor, and Pensions (HELP) Committee. The hearing was about empowering workers by expanding employee ownership.
Read excerpts from the hearing below or watch on YouTube or Rumble.
INTRODUCTION:
TUBERVILLE: “I’m proud to introduce an Auburn man and a constituent, Mr. Bill Roark. Mr. Roark is the Co-founder of Torch Technologies Inc., Founder and Executive Chairman of the Board of Starfish Holdings, Inc., and Founder and Chair of the Board of Freedom Real Estate and Capital LLC, so he stays pretty busy. He’s a champion for employee ownership, and he has led multiple companies to national recognition [thanks] to his core values.
As CEO of Torch Technologies, Mr. Rourke implemented an employee-owned ownership program from the company’s inception with the goal of becoming a 100% S corp employee stock ownership plan. His company achieved that goal in just under 10 years. Torch and Mr. Roark gained national attention for being named on the inaugural list of best of America’s best small companies by Forbes. During his tenure, Torch received multiple business awards and was named the number one fastest-growing, privately-held defense contractor in the southeast region. Torch Technologies provides superior research development and engineering services to the Department of Defense. Mr. Roark recently led Torch to become a certified evergreen company, achieving its long-term commitment to 100% employee ownership and its pledge to remain privately held to ensure enduring stability and opportunity for its workforce. This milestone came as Torch celebrated its 20th anniversary.
A true believer in company culture and employee well-being, Mr. Rourke has prioritized top-tier benefits and working conditions throughout his career. Mr. Rourke also founded Starfish Holdings Incorporated, a holding company that provides beneficial ownerships to employees across all its portfolios through an ESOP structure. Starfish Holdings companies now include Torch Technologies Inc., Freedom Real Estate and Capital LLC, and SIMVANA [LLC]. Mr. Roark has a proven track record with a common denominator of building companies where employees can thrive, retire with dignity, and find lasting purpose in their work.
Thank you for being here today, Mr. Roark.”
ON THE IMPORTANCE OF WORKPLACE DIGNITY:
TUBERVILLE: “Important topic. Mister Roark, it’s got to be pretty mind calming to know if you work in an ESOP and you have some of the owners exit the company that everybody’s not gonna lose their job. So, what kind of security does an ESOP structure have for all employees? What that you’ve seen? Some examples.”
ROARK: “Well, you know, we work real hard to build a succession plan in that it prepares our employees as people retire to step forward. You know, that is a challenge. One of the biggest challenges we’ve had is the success of the ESOP has led to people retiring early, so we have to work that problem a little harder and be training people ready to step into the role. The departure of employees that are retiring actually creates lots of opportunities for the other employees to accelerate in their careers quicker. So, a successful ESOP actually creates a lot of successful careers.
It also creates the ability for employees to retire with dignity. In fact, the announcement of this hearing went out on our social media last night and one of the posts this morning, I’ll quote for you. […] Jim Deal, one of our retiring employees seven or eight years ago, he says, ‘Tell them how much you helped us retire with dignity.’ That is to me the essence of why I wanted to do this. You know, some 25 years ago, a company bought the company I worked for. And a few months after it was bought, I’d had a successful career. I went from being an entry level person to an executive. I was president of an operating segment. In that time, I’d had one of the most successful careers of anyone at that company. As that acquisition evolved and I was there, I was shortly thereafter, walked to the door and asked, told as I was handed my severance check that ‘We’ll pack your office and send your stuff home.’
When I started this company, at the core of what I wanted is I wanted people to retire with dignity. When I walked out and stood on that corner, I didn’t feel very dignified. When I meet an employee in the grocery store, I want them to come hug me, not run from me. With the ESOP, I get lots of hugs. Every year when the ESOP statements come out, I get lots of hugs.This is a different way of doing business. I never wanna see an employee walk through the door in such an undignified manner. I put my whole life into that company. Several times, I worked 24 hours straight to get a delivery out on time.Was that respected? No. My stuff showed up in boxes with a bunch of crap that I didn’t really want, was not dignified at all. I hope that answers your question, Coach.”
TUBERVILLE: “So, how can we help on the federal level to make ESOP structure more viable for that?”
ROARK: “No. I think there’s lots of ideas being proposed here in in several of these bills, you know, making this easier, making it clearer in what we’re supposed to do. There’s a lot of murkiness in the bills, you know, one of the things for us in the last few years, we’ve been in a position where we could contribute more than the maximum allowable to our employees, and that creates an issue with the ESOP itself. Rf the limit is at 25%, I can only give 25%. If it were higher, we in some cases would have given higher, including this year. So, there are some pieces there where we could just fine tune some things. The ESOP is a wonderful tool and it provides stability for the employees and provides a retirement path for them as well. So, I think the more that we can refine the regulations around it to encourage people to be able to do this, clear up the rules on how the evaluations are done so that it’s clear what needs to be done. I think those would be great helps.”
TUBERVILLE: “Thank you. Thank you, Mr. Chairman.”
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP and Aging Committees.

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: Markey and Warnock Demand Answers from Secretaries Rubio and Noem on Contradictory U.S. Foreign and Immigration Policies Toward Haiti and Potential Illegal Arms Exports to Port-au-Prince

US Senate News:

Source: United States Senator for Massachusetts Ed Markey
Letter Text (PDF)
Washington (July 24, 2025) – Senators Edward J. Markey (D-Mass.) and Raphael Warnock (D-Ga.) today led their colleagues in writing to Secretary of State Marco Rubio and Secretary of Homeland Security Kristi Noem, requesting clarification on the contradictory U.S. foreign and immigration policies toward Haiti. The senators also demand answers on the involvement of a U.S. private military contractor (PMC)—led by Blackwater Worldwide founder Erik Prince— conducting armed operations in Haiti.
In the letter, the lawmakers write, “According to recent reports, a U.S. private military contractor (PMC) is conducting armed operations in Haiti under a formal contract with the country’s transitional government. These reports raise urgent questions about compliance with U.S. arms export laws, the risk of U.S. complicity in gross violations of human rights, and fundamental contradictions in current U.S. foreign and immigration policy toward Haiti. In light of these concerns, and in view of the Trump administration’s recent decision to both terminate Temporary Protected Status (TPS) for Haiti and include Haiti in its newly announced travel ban, we request that you immediately clarify how these decisions are being coordinated and justified across the Executive Branch.”
The lawmakers continued, “Weaponized drone operations, arms shipments, and deployments of U.S. mercenaries unquestionably constitute activities requiring export licenses. If those licenses were granted, their approval would appear inconsistent with NSPM-10’s human rights criteria. If no licenses were granted, then these activities may be proceeding in violation of U.S. law. At a time when U.S. foreign policy towards Haiti is increasingly inconsistent, by undermining multilateral efforts, ignoring human rights concerns, and pursuing deportations despite escalating violence, the unchecked deployment of a U.S. private military contractor with a troubling history of human rights abuses represents an urgent threat to U.S. legal obligations, credibility, and responsibilities to protect vulnerable populations.”
The lawmakers request the following information by August 15, 2025:
Has any U.S. private military contractor applied for or received export licenses for defense articles or military services provided in Haiti? If so, please identify them and provide copies of the export licenses.
Have any such licenses been reviewed under NSPM-10, Section 3(d) regarding the risks to international peace and human rights? If so, please provide the results of any such review. If not, why not?
Has any interagency review assessed whether such U.S. private military contractor activity could undermine the Multinational Security Support (MSS) mission? If so, please provide the results of any such review. If not, why not? Has the Department of State assessed whether these activities are consistent with, duplicative of, or in conflict with the UN MSS mission? If so, please provide the results of any such assessment. If not, why not?
Have the Haitian National Police units that are reportedly receiving U.S. security assistance been vetted under the Leahy Law? If so, please provide the results of that vetting. If not, why not?
What accounts for the contradiction between State’s support for armed stabilization operations in Haiti and DHS’s determination that TPS protections should end?
How does the Administration reconcile the security justification for Haiti’s inclusion in the travel ban with its simultaneous assessment that Haiti’s TPS status should be terminated because it is safe for Haitians to return home?
The letter was co-signed by Senators Chris Van Hollen (D-Md.), Elizabeth Warren (D-Mass.), Bernie Sanders (I-Vt.), Alex Padilla (D-Calif.), Adam Schiff (D-Calif.), Peter Welch (D-Vt.), and Cory Booker (D-N.J.).

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: Sen. Markey, Reps. Tonko, Fitzpatrick, Bacon, Introduce Community Mental Wellness & Resilience Act

US Senate News:

Source: United States Senator for Massachusetts Ed Markey
Bipartisan legislation bolsters mental wellness & resilience to traumas caused by climate disasters
Washington (July 24, 2025) – Senator Edward J. Markey (D-Mass.), a member of the Environment and Public Works Committee and co-Chair of the Environmental Justice Caucus, along with Representatives Paul D. Tonko (D-NY), Brian Fitzpatrick (R-PA), and Don Bacon (R-NE), today introduced the Community Mental Wellness and Resilience Act, a bipartisan bill that tackles the nation’s mental health crisis by addressing the extensive community trauma caused by climate disasters. This innovative legislation will empower communities through a new federal grant program to craft their own locally specific responses to the mental health problems caused by disasters and toxic stresses.
“Communities are struggling to meet the current need for mental health services, and as the climate crisis worsens, unprecedented disasters will only cause more unprecedented harm to our physical and mental health,” said Senator Markey. “Heat waves, flash floods, wildfires, and droughts leave devastation and trauma in their wake. My Community Mental Wellness and Resilience Act would give communities the help they need to protect residents’ mental health, especially those in rural and underserved communities that are getting hit first and worst by disasters and have the fewest resources to deal with them.”
“Extreme weather disasters don’t just wreak havoc on our homes, economies, and infrastructure — they inflict lasting trauma and mental harm for those both directly impacted and far beyond the affected area,” Congressman Tonko said. “We need to provide compassionate, evidence-informed solutions to support our communities. That’s why I’m leading this bipartisan legislation in partnership with my colleagues. We’ll continue working to further mental wellness and equip our communities with the resources they need to meet and overcome these traumas.”
“For too long, our disaster response has focused solely on physical recovery, while the mental and emotional toll has gone unaddressed. This bipartisan legislation corrects that imbalance by treating mental health as a core component of our public health and emergency preparedness strategy. By investing in evidence-based, community-driven solutions, we’re not just helping communities rebuild—we’re helping them heal,” said Congressman Brian Fitzpatrick.
“The mental health crisis affecting our communities is one of the most serious challenges of our time. We need comprehensive, community-driven solutions that empower local leaders to develop and implement programs that work for their specific needs,”?said Congressman Don Bacon.?“The bipartisan Community Mental Wellness and Resilience Act puts the power back in the hands of our communities to create meaningful, lasting change in mental health care.”
In 2024, Mental Health America reported that nearly 23 percent of U.S. adults (~60 million people) experienced a diagnosed mental illness, with more than 5 percent facing severe conditions. Climate disasters only exacerbate the problem. Consequently, the number of people who experience a mental health problem as a result of a natural disaster often outweigh those with physical injuries by 40 to 1.
The Community Mental Wellness and Resilience Act will:
Establish a competitive grant program at the Department of Health and Human Services (HHS) to create, operate, or expand community-based programs that use a public health approach to build mental wellness and resilience
Utilize these programs to enhance the capacity of all residents for mental wellness and resilience to prevent and heal mental health problems generated by disasters and toxic stresses
Incorporating a set-aside to help address rural mental health disparities
Help community initiatives build their own strategies to enhance and sustain population-level mental wellness and resilience, with specific attention to high-risk individuals
More than 110 organizations support the legislation, including: Alliance of Nurses for Healthy Environments, American Foundation for Suicide Prevention, American Lung Association, American Psychiatric Association, American Public Health Association, International Transformational Resilience Coalition, Mental Health America, Moms Clean Air Force, National Association of Pediatric Nurse Practitioners, National Association of Social Workers, National League for Nursing, Rural Opportunity Institute, The Kennedy Forum, and YMCA of the USA.
A fact sheet on the legislation can be found HERE.

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: Senator Markey Introduces Legislation to Increase Wages Nationwide for Paraprofessionals and Education Support Staff

US Senate News:

Source: United States Senator for Massachusetts Ed Markey
Bill Text (PDF)
Washington (July 24, 2025) – Senator Edward J. Markey (D-Mass.), a member of the Health, Education, Labor and Pensions Committee, today introduced the Pay Paraprofessionals and Education Support Staff Act, legislation that would set a minimum wage for school staff of $45,000 per year, or $30 per hour.
“Paraprofessionals and education support staff make our schools safe, healthy places where all students can learn, grow, and thrive. They are a critical part of our education infrastructure, and we must invest in them the way they invest in our students, their families, and their communities,” said Senator Markey, who earlier today participated in a town hall at the U.S. Capitol with more than 100 educators and educational leaders to discuss the educator pay crisis. “As Trump and Republicans work to cut public education and attack educators across the country, I am proud to introduce this legislation, which will uplift paraprofessionals and education support staff and give them the support and resources they need to succeed.”
Several educational leaders voiced their support for the Pay Paraprofessionals and Education Support Staff Act.
“Every day, we fight for our paraprofessionals and school-related personnel who are not paid enough; they work under tough conditions, and many are subject to violence during the workday. Too many must work multiple jobs just to make ends meet. Given the crucial role that PSRPs play in classrooms and the invaluable support they give to the students they serve, securing commensurate compensation and respect is critical. We are grateful to Sen. Markey for his commitment to paraprofessionals, bus drivers, custodians, school office staff, school food service workers and all the school staff who make our schools run. Do you think teachers and principals could do their jobs without PSRPs? The answer is ‘no.’ Sen. Markey’s bill, the Pay Paraprofessionals and Education Support Staff Act, would guarantee that the more than 370,000 members who make up the AFT’s PSRP division would have access to a family-sustaining wage. We look forward to moving this bill forward in Congress,” said Randi Weingarten, President of the American Federation of Teachers.
“Paraprofessionals play an invaluable role in our classrooms and are at the heart of our public school — helping students learn, grow, and meet their basic needs,” said Jessica Tang, President of the American Federation of Teachers Massachusetts. “Outside of the classroom, they’re important members of the community, many have kids and grandkids in the schools and live in the communities they serve. For far too long, paraprofessionals have been forced to work multiple jobs, or rely on public assistance, just to make ends meet. One job should be enough. It’s time our paraprofessionals receive the fair wages, benefits, and respect that reflects the important work they do every day.”
“Education Support Professionals strengthen our schools and communities by making sure our students are safe, healthy and ready to learn every day. But too many of these educators are forced to work two or three jobs to support their families, when one job should be enough. By passing the Pay Paraprofessionals and Education Support Staff Act, Congress will show they recognize and appreciate the invaluable contributions of our ESPs – both inside and outside the classroom. We want to thank Senator Ed Markey for introducing this legislation, and we urge Congress to act swiftly in passing it to demonstrate to our Education Support Professionals that, as a nation, we respect and value all they do for our students,” said Becky Pringle, President of the National Education Association. “As the Trump administration continues to take a wrecking ball to public education and the futures of the 50 million students in rural, suburban, and urban communities across America, this legislation is more important than ever to ensure our students get the support they need.”
“An Education Support Professional told us how one of her students had an after-school job at a fast-food restaurant that paid more per hour than this district was paying veteran ESPs. This is shameful. ESPs play an increasingly vital role in our public schools, yet in too many districts across Massachusetts they do not earn a living wage. We have heard countless stories from ESPs who love working with their students but cannot afford to keep their school jobs. Senator Markey’s bill is a sensible and responsible approach to correcting a serious injustice in our public schools. By establishing a floor upon which to build a real living wage, this legislation will improve learning conditions – especially for our most vulnerable students – by stabilizing the education workforce,” said Max Page, President, and Deb McCarthy, Vice President of the Massachusetts Teachers Association.
The bill is cosponsored by Senators Alex Padilla (D-Calif.), Mazie Hirono (D-Hawaii.), Bernie Sanders (I-Vt.), Kirsten Gillibrand (D-N.Y.), Peter Welch (D-Vt.), and Elizabeth Warren (D-Mass.).
The bill is endorsed by the National Education Association, SEIU, American Federation of Teachers, AFSCME, Council for Exceptional Children, EdTrust, and National Women’s Law Center.
On July 17, 2025, Senator Markey reintroduced the Preparing and Retaining All (PARA) Educators Act, legislation that would establish higher wages, career pipelines, and professional development opportunities for school paraeducators. In April 2025, Senator Markey and Representative Jahana Hayes (CT-05) introduced the Paraprofessionals and Education Support Staff Bill of Rights.
On March 20, Senator Markey slammed Trump’s Executive Order to dismantle the Department of Education. On March 11, Senator Markey delivered remarks on the Senate Floor to spotlight Trump’s plan to gut the Department. On February 27, Senator Markey introduced the No Cuts to Public Schools Act, which would prevent any cuts to federal education formula funding during the Trump administration. On February 10, Senator Markey held a press conference in Boston with Massachusetts educators and teachers’ unions on Trump’s vow to dismantle the Department, and the impact on Massachusetts students, educators, and communities.
On February 6, 2025, Senator Markey, members of the Massachusetts congressional delegation, along with the Massachusetts Teachers Association, American Federation of Teachers Massachusetts, Massachusetts Association of School Committees, and Massachusetts Association of School Superintendents, released a joint statement after President Trump vowed to dismantle the Department of Education.
In September 2023, Senator Markey introduced the Green New Deal for Public Schools Act, legislation that would invest $1.6 trillion over the next decade in public and Bureau of Indian Education schools to upgrade every public school building in the country; reduce hazardous pollution; give schools the resources to hire hundreds of thousands of educators, paraprofessionals, and counselors; invest in schools serving low-income students; and fully fund education for students with disabilities.
Senator Markey first introduced the Paraprofessional and Education Support Staff Bill of Rights in November 2023.

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: Cornyn, Graham Call for Special Counsel to Investigate Obama Administration’s Role in Russia Collusion Hoax

US Senate News:

Source: United States Senator for Texas John Cornyn
WASHINGTON – U.S. Senators John Cornyn (R-TX) and Lindsey Graham (R-SC), both senior members of the Senate Judiciary Committee, today called on U.S. Attorney General Pam Bondi to appoint a special counsel to investigate the Obama administration’s involvement in the Russia collusion hoax:
“For the good of the country, we urge Attorney General Bondi to appoint a special counsel to investigate the extent to which former President Obama, his staff, and administration officials manipulated the U.S. national security apparatus for a political outcome.
“As we have supported in the past, appointing an independent special counsel would do the country a tremendous service in this case.
“With every piece of information that gets released, it becomes more evident that the entire Russia collusion hoax was created by the Obama Administration to subvert the will of the American people.
“Democrats and the liberal media have been out to get President Trump since 2016. There must be an immediate investigation of what we believe to be an unprecedented and clear abuse of power by a U.S. presidential administration.”
Background:
Last week, Director of National Intelligence (DNI) Tulsi Gabbard released evidence demonstrating that former President Barack Obama and his national security staff manipulated information from the intelligence community in order to insinuate that Russia was attempting to help then-candidate Donald Trump win the 2016 presidential election, including:
In the months leading up to the November 2016 election, the Intelligence Community (IC) assessed that Russia is “probably not trying … to influence the election by using cyber means.”
On December 7, 2016, after the election, talking points were prepared for DNI James Clapper stating, “Foreign adversaries did not use cyberattacks on election infrastructure to alter the US Presidential election outcome.”
A declassified copy of the Presidential Daily Brief, which was prepared using intelligence from the CIA, Defense Intelligence Agency, FBI, National Security Agency, Department of Homeland Security, State Department, and open sources, for Obama on December 8, 2016, assessed that “Russian and criminal actors did not impact recent US election results by conducting malicious cyber activities against election infrastructure.”
That Presidential Daily Brief was scheduled to be published on December 9, 2016, but communications revealed that DNI Clapper’s office stopped its publication “based on some new guidance.”
On December 9, 2016, Obama gathered top National Security Council Principals for a meeting in the Situation Room that included James Clapper, John Brennan, Susan Rice, John Kerry, Loretta Lynch, Andrew McCabe and others, to discuss Russia.
After the meeting, DNI Clapper’s Executive Assistant sent an email to IC leaders tasking them with creating a new IC assessment “per the President’s request” that details the “tools Moscow used and actions it took to influence the 2016 election.” It went on to say, “ODNI will lead this effort with participation from CIA, FBI, NSA, and DHS.”
Obama officials leaked false statements to media outlets, including The Washington Post and The New York Times, claiming, “Russia has attempted through cyber means to interfere in, if not actively influence, the outcome of an election.”
On January 6, 2017, a new Intelligence Community Assessment was released.

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: RELEASE: Mullin Calls for Immediate Release of all Information Related to Epstein Case, Blasts Dem Absence Last Four Years

US Senate News:

Source: United States Senator MarkWayne Mullin (R-Oklahoma)

RELEASE: Mullin Calls for Immediate Release of all Information Related to Epstein Case, Blasts Dem Absence Last Four Years

Washington, D.C. – Today,U.S. Senator Markwayne Mullin (R-OK), introduced a resolution calling on federal and state courts to immediately unseal all materials related to any criminal investigation or prosecution of Jeffrey Epstein or Ms. Ghislaine Maxwell—subject only to redactions to protect victims.
In his remarks, Senator Mullin previewed his resolution, addressed the Democrats’ absence on this issue for the last four years, and the need for transparency. Highlights below.

Sen. Mullin’s full remarks can be found here.
On the Democrats’ political theater performance:
“As we hear my colleague from Arizona use very liberal truths to what he was saying by not giving all the facts. I’d also propose a question, where was all this outrage over the last four years when Director Wray was over the FBI and Attorney General Garland was over the DOJ? He knows, I know, and all the Democrats know that if there was anything to do with President Trump, they would have happily released it.”
“My Lord, you went after him for everything else you could possibly think of, why wouldn’t you possibly go after this? Well, it’s because this is nothing but political theater. We know that… All of us want transparency… Why now? Is it because of their hatred towards President Trump? Because they want to do anything they can possibly do to distract what they might be hiding. Why wasn’t this done the previous four years? What happened? They had the same files. This case wasn’t new.”
On Sen. Mullin’s resolution calling for the immediate release of the Epstein files:
“We all want transparency and for credible information on the Epstein case to be made public so that the American people can decide. The Trump administration has already said they are committed to releasing all available files. Last week, President Trump directed AG Bondi to produce any and all pertinent grand jury testimony in the Epstein case.
“My resolution would echo the seriousness of the directive from the President and the DOJ to the courts and calls to immediately unseal all materials. When combined with what our House colleagues have done, this resolution moves forward providing justice to the victims and transparency to the American people. Mr. President, as I said before, we want transparency.”
On Sen. Gallego objecting to Sen. Mullin’s Resolution:
“It’s interesting that my colleague wants to continue talking about the elites, but the elites were the ones that actually covered up the last four years of the Biden administration. I mean, think about what happened during the Biden administration. They covered up one, for his cognitive behavior. Two, they covered up the Hunter Biden laptop. Three, they covered up the Russian gate, and continue to cover up the Russian gate. And four, they covered up the fact that an autopen signed every, well, every one of his papers except one.”
On the silence from the Democrats the last four years:
“But yet, my colleague from Arizona is saying that we’re covering up for the elites? Let’s be honest. We know these files have been out there forever. I don’t remember a single time the Biden Administration called on these things to be released. And I definitely don’t remember my colleague from Arizona calling on these files to be released.
Full text of Senator Mullin’s resolution can be found here.
To read more about Senator Mullin’s resolution in Fox News, click here.

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: ICYMI—Hagerty Joins The Bottom Line on Fox Business to Discuss Trump’s Policy Agenda, Nominee Confirmations, Market Structure Legislation

US Senate News:

Source: United States Senator for Tennessee Bill Hagerty
WASHINGTON—Yesterday, United States Senator Bill Hagerty (R-TN), a member of the Senate Appropriations and Banking Committees and former U.S. Ambassador to Japan, joined The Bottom Line on Fox Businessto discuss the Senate’s work on President Donald Trump’s legislative priorities, efforts to confirm key nominees, and the next phase of cryptocurrency market structure legislation following the passage of the GENIUS Act.
*Click the photo above or here to watch*Partial Transcript
Hagerty on the August recess and public support for the Big Beautiful Bill: “I’m certainly here ready to work through the weekends, ready to work into the recess that we have scheduled. We do have a communication challenge ahead because the Democrats and their liberal media partisan allies have been out telling a story that’s not true about this bill. The elements of this bill are very popular with the United States of America– extending the tax cuts, no tax on tips, and no tax on overtime. If you think about beefing up the military and securing our border, these are all things that the American public not only wants, but they voted for. There’s a lot of good to talk about, and we need to get back to talk about it. But I appreciate the opportunity to do that here. And right now, the American public is already seeing the benefit. The stock market is at an all-time high. We’re seeing great concessions being made by countries all over the world to do more business with America, more investments taking place in America, and blue-collar wages are back on the rise again. On a real and inflation-adjusted basis, blue-collar wages are up again, like they were back when President Trump was in office before. That certainly was not the case when Joe Biden was in office. We have a lot of good news to sell.”
Hagerty on staying in Washington to work on nominee confirmations: “I think we’re going to stay here and work. That’s what the President wants us to do. This would not be necessary— and I want to be clear about this— were it not for the maximum resistance campaign that the Democrats have put in place. This is unprecedented in terms of the number of procedural hoops they have forced us to step through, because their overarching objective is to keep President Trump from seeding his cabinet, from putting his team on the ground. Despite all of their efforts, President Trump keeps winning time and time again. Our border is secure, our economy is moving in the right direction, trade deals are coming in— we’re still winning. It would be even better if we could get our team on the ground. The Democrats are trying to stop us, and we’re just going to have to keep plowing right through. So I’m here to work, through the weekends, whatever it takes to get the team on the field.”
Hagerty on his market structure bill: “I take a great deal of pride in my legislation, the GENIUS Act. The stablecoin bill will actually open the market for digital currencies here in the United States. It puts us and our payment system into the 21st century. It brings dollar dominance into the digital arena, so that the dollar will dominate. That’s what we have to do to make certain that we stay ahead as a nation. That opens the door then for market structure, which broadens the web and allows us to reach into this innovative market. Innovation needs to take place here in the United States, and additional market structure legislation is necessary. We put a discussion draft out this week that gives a broad outline of how we want to approach it, how we’re going to define the various types of cryptocurrencies, and whether securities and or commodities should be regulated by banks, the SEC [Securities and Exchange Commission], or the CFTC [Commodity Futures Trading Commission].”
Hagerty on efficiency and market benefits of blockchain: “We’re requesting more input from the industry, and I expect to get a tremendous amount of input here. We’re looking to move this along as quickly as possible. I’m looking at the end of September as a target deadline to get this done. This creates the opportunity to drive down costs and improve efficiency. When thinking about the speed of transactions on the blockchain, the efficiency here is enormous. It takes out counterparty risk, reduces float in the system, removes friction, and delivers great economies of scale as it unfolds.”

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: Booker, Lee, McIver Introduce Bill to Expand Legal Representation for Tenants Facing Eviction

US Senate News:

Source: United States Senator for New Jersey Cory Booker
WASHINGTON, D.C. – Today, U.S. Senator Cory Booker (D-NJ) along with U.S. Representatives Summer L. Lee (D-PA-12) and LaMonica McIver (D-NJ-10), reintroduced the Eviction Right to Counsel Act, a bold effort to combat the growing eviction crisis by ensuring that low-income tenants facing eviction have access to free legal representation.
The Eviction Right to Counsel Act would establish a federal grant program through the Department of Housing and Urban Development (HUD) to support state, local, and Tribal governments that pass legislation guaranteeing a right to counsel in eviction proceedings. The bill prioritizes funding for jurisdictions that also implement additional tenant protections like just cause eviction laws, longer notice periods, emergency rental assistance, and eviction diversion programs—creating a comprehensive strategy to prevent displacement and housing instability.
“Millions of Americans are living paycheck to paycheck while facing rapidly increasing rent prices,” said Senator Booker. “Renters facing eviction are often left defenseless without an attorney to represent them. By creating a grant program to support communities that offer a right to counsel for those facing eviction, we will make our housing system more equitable and provide substantial cost savings to both local governments and overburdened housing services across the country.”
“Right now, in eviction courtrooms across America, 90% of landlords have lawyers while most tenants have none. And it’s no coincidence that Black families, women, and parents are bearing the brunt of it. No one should lose their home simply because they couldn’t afford a lawyer,” said Representative Lee. “In Western Pennsylvania and across PA-12, families are being crushed by rising rents, stagnant wages, and eviction threats. This bill is about supporting working people and ensuring they have a fighting chance—and that starts with legal representation. I am proud to partner with Senator Booker and Rep. McIver on this bill to help keep people in their homes.”
“No one should lose their home because they can’t afford to hire a lawyer to take on their case,” said Representative McIver. “The Eviction Right to Counsel Act gives people a fair shot—a chance to fight their cases in court and keep families from falling into the spiral of poverty. Housing is a human right, and this bill takes a critical step toward making sure that right is a reality that people feel.”
“Not only is housing a basic human need, but loss of housing can lead to a cascade of harms to other needs such as health, safety, and liberty. This bill would support states and cities enacting a right to counsel for tenants facing eviction, an evidence-based approach to increasing housing stability and reducing homelessness that has been adopted by cities and states across the country,” said John Pollock, Coordinator of the National Coalition for a Civil Right to Counsel.
“For years, NLIHC has called for a national right to counsel fund to help renters stay in their homes and mitigate harm when eviction is avoidable,” said Renee Willis, NLIHC president and CEO. “I applaud Senator Booker for introducing the Eviction Right to Counsel Act to ensure low-income tenants have legal representation when their housing is most at risk. Eviction defense attorneys can make the difference between a renter staying in safe, stable housing or homelessness, and the right to counsel helps tenants know their rights and find support in navigating the complicated eviction process.”
“We applaud Senator Booker’s leadership on this issue and very glad to see this legislation introduced today. Eviction is a policy failure and the federal government must support mechanisms that keep people safely and stably housed. We look forward to working with the Senator to see this legislation enacted,” said Arnold Cohen, Senior Policy Advisor, Housing and Community Development Network of New Jersey.
The legislation comes amid skyrocketing rents and surging eviction filings. Nearly half of all renters in America are considered cost-burdened, spending more than 30 percent of their income on rent. Since the pandemic, rents have risen over 12 percent year-over-year, while the protections that temporarily shielded tenants from eviction have largely expired. The imbalance of legal power in eviction proceedings leaves many tenants—particularly Black renters and families with children—vulnerable to homelessness, economic instability, and trauma.
Studies show that providing tenants with legal representation dramatically improves outcomes, often preventing eviction altogether and saving local governments millions in emergency shelter, health care, and social services costs. Cities that have invested in right to counsel programs have seen estimated cost savings of more than three times their annual investment.
The Eviction Right to Counsel Act of 2025:
Authorizes the Secretary of Housing and Urban Development to create a grant program for state, local, and Tribal governments that enact right to counsel legislation.
Defines “covered individuals” as tenants with income at or below 200 percent of the federal poverty line.
Covers civil legal actions in court or administrative forums related to:
Eviction: Forcible removal from a tenant’s primary residence.
Termination of Housing Subsidy: Loss of subsidies that help tenants afford their homes, which often functions as a de facto eviction.
Requires jurisdictions receiving funding to provide full legal representation at no cost to covered individuals in these proceedings.
Prioritizes funding for jurisdictions that have enacted additional tenant protections, including just cause eviction laws, extended notice periods, and eviction diversion programs.
Allows grantees to use funds for implementation costs such as attorney training and legal resources.
Authorizes $100 million in federal funding annually for five years.
The bill is endorsed by: the National Low-Income Housing Coalition, National Coalition for a Civil Right to Counsel, National Housing Law Project, and the Housing and Community Development Network of New Jersey.
The bill is co-sponsored by U.S. Senators Ron Wyden (D-OR), Chris Van Hollen (D-MD), Bernie Sanders (I-VT), and Richard Blumenthal (D-CT).
To read the full text of the bill, click here.

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: Booker Hosts Virtual Town Hall with African American Chamber of Commerce of New Jersey Members, Discusses Trump’s Disastrous Effects on Local Businesses

US Senate News:

Source: United States Senator for New Jersey Cory Booker
Washington, D.C.– This afternoon, Senator Cory Booker (D-NJ) hosted a virtual town hall event with members of the African American Chamber of Commerce of New Jersey (AACCNJ). Among the top concerns from business leaders were the Trump administration and congressional Republicans’ damaging effects on local and Black businesses.
“Seeking to placate the Trump administration at every turn, congressional Republicans–even those in our own delegation–have undermined New Jersey’s local businesses. That’s especially true for Black small business owners across the state,” said Senator Booker. “Throughout this afternoon’s town hall with AACCNJ members, it was made clear that the economic environment under Trump is one of great uncertainty for our state’s Black business community. It’s stifling innovation, hindering opportunities for our entrepreneurs and workers, and constricting local economies up and down New Jersey. I will continue to fight alongside AACCNJ to ensure New Jersey remains a place where Black businesses can flourish.”
Under President Trump, local businesses have struggled to navigate the severe and unpredictable nature of the administration’s trade policy. These challenges are particularly acute for small businesses which largely rely on imports, leaving them especially vulnerable to Trump’s tariff disputes. At the same time, President Trump has completely undermined the Small Business Administration and the federal government’s efforts to foster more diverse and equitable practices, including in its contract and service procurement processes.
“The African American Chamber of Commerce of New Jersey (AACCNJ) thanks Senator Booker for the opportunity to discuss the current landscape of Black businesses in New Jersey and the broader U.S. economy. We believe this conversation to be particularly timely given the recent policy changes and the upcoming gubernatorial election in New Jersey,” said Dr. John E. Harmon, Sr., Founder, President & CEO, AACCNJ.
During the town hall, AACCNJ members asked the Senator about federal initiatives and legislation to support state and local businesses and outlined the issues specifically affecting Black businesses.

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: McConnell Praises President Trump’s Selection of Paducah as Future Home of AI Infrastructure

US Senate News:

Source: United States Senator for Kentucky Mitch McConnell
WASHINGTON, D.C. – U.S. Senator Mitch McConnell (R-KY) today praised the Trump Administration’s selection of the Department of Energy’s Paducah Site, home of the Paducah Gaseous Diffusion Plant (PGDP), as one of four locations for cutting-edge artificial intelligence (AI) data centers and energy generation projects:
“This is great news for the Paducah community, and I want to thank President Trump for selecting the Paducah Site to host new AI infrastructure. The site at the Paducah Gaseous Diffusion Plant has long held a critical role in advancing U.S. national security, and is poised, yet again, to be a national leader in an emerging and important technology. I am proud of the Paducah community and its workforce and know they are prepared to continue working closely with the Department of Energy to further instill PGDP’s role in national security while helping facilitate greater U.S. leadership in AI.”
NOTE: Earlier this year, Senator McConnell contacted U.S. Department of Energy Secretary Chris Wright on behalf of the community in support of Paducah’s submission for the nationwide search for the highly competitive Artificial Intelligence Infrastructure on DOE Lands program.

MIL OSI USA News –

July 25, 2025

MIL-OSI USA: NEWS: Sanders Introduces Legislation to Address America’s Teacher Pay Crisis, Holds Town Hall with Public School Educators

US Senate News:

Source: United States Senator for Vermont – Bernie Sanders
WASHINGTON, July 24 — Sen. Bernie Sanders (I-Vt.), Ranking Member of the Senate Committee on Health, Education, Labor, and Pensions (HELP), today introduced the Pay Teachers Act after hearing from more than 200 teachers and educational leaders from across the country during a town hall at the U.S. Capitol. At a time when school districts nationwide report serious staffing shortages — largely due to unprecedented levels of stress, burnout and low pay — this legislation begins to address the teacher pay crisis in America and ensure that all public school teachers earn a livable and competitive wage that is at least $60,000 a year and increases over the course of their career.
In addition to Sanders, Sens. Ed Markey (D-Mass.), Mazie Hirono (D-Hawaii), Ben Ray Lujan (D-N.M.), Peter Welch (D-Vt.), John Fetterman (D-Pa.), Jeff Merkley (D-Ore.), Elizabeth Warren (D-Mass.) and Alex Padilla (D-Calif.) also cosponsored this legislation. Joining Sanders at the town hall today were Markey; Randi Weingarten, president of the American Federation of Teachers (AFT); Princess Moss, vice president of the National Education Association (NEA); and educators from across the country.
“If we are serious about the need for a bright and hopeful future for America, we must understand that there is no more important job in our country than educating our young people. And yet, public school teachers in America have one of the toughest, one of the most demanding and one of the most under-appreciated jobs in America,” Sanders said. “The situation has become so absurd that just four hedge fund managers on Wall Street make more money in a single year than every kindergarten teacher in America combined – over 120,000 teachers. Far too many of our nation’s public schools are under-funded, under-resourced and in major need of repair. Far too many of our public school teachers are under-paid, under-appreciated and overwhelmed. And, as a result of the so-called ‘Big Beautiful Bill’ that Trump signed into law a few weeks ago, a bad situation is about to get even worse. If we are going to have the best public school system in the world, we have got to radically change our attitude toward education and make sure that every teacher in America receives the compensation that they deserve for the enormously important and difficult work that they do. No public school teacher in America should make less than $60,000 a year.”
Today in America, nearly one in eight teaching jobs is vacant or filled by a teacher who is not fully certified. Approximately one-third of all public school teachers make less than $60,000 a year — including more than 90% of starting teachers. Hundreds of thousands of teachers have to work two or three jobs during the school year to make ends meet. Meanwhile, the average weekly wage for public school teachers has decreased by 5% over the past 30 years, adjusted for inflation. Today, 44% of public school teachers quit the profession within five years.
The pandemic only made things worse for educators, with the historic staffing shortages disproportionately affecting schools primarily serving students of color and students from low-income backgrounds. Recent studies show that, of all workers, K-12 public school teachers were the most likely to report higher levels of anxiety, stress and burnout during the pandemic. Further, as badly as public school teachers are paid, our school custodians, food service workers and paraprofessionals earn even less. In America today, nearly 35% of paraprofessionals and school staff earn less than $25,000 a year.
Unacceptably, the Republican reconciliation bill recently signed into law is disastrous for public education and for public school teachers. While it provides a $900 billion tax cut to large, profitable corporations and a $1 trillion tax cut to the top 1%, it cuts over $300 billion in education funding for millions of students and educators throughout America and provides over $50 billion a year for private school vouchers.
“If we are going to attract the best and brightest young people into teaching, if we are going to encourage teachers to teach in underserved communities, if we are going to improve teacher retention and morale, and if we are going to improve student academic outcomes, then we need to pay teachers in America decent wages and decent benefits,” Sanders continued. “We need to make it clear that high-quality public education is a major priority. That is why I am introducing the Pay Teachers Act. Because if we can provide over a trillion dollars in tax breaks to the top 1% and large corporations, please don’t tell me that we cannot afford to make sure that every teacher in America is paid at least $60,000 a year. I look forward to working with teachers and schools all across the country — some of whom I had the pleasure of hearing from today — to make that happen.”
The bill would also provide all teachers with at least $1,000 annually for classroom supply expenses and help schools create well-paid career ladders that allow teachers to advance without leaving the classroom. Additionally, it includes Markey’s Pay Paraprofessionals and Education Support Staff Act, which would raise pay for paraprofessionals and education support personnel to at least $45,000 a year or $30 an hour. In addition to requiring that states establish a minimum teacher’s salary of $60,000 a year and pay all teachers a livable and competitive salary that increases as experience and responsibilities grow, the Pay Teachers Act would significantly increase federal investments in teachers and public schools, including tripling Title I-A funding and funding for rural education programs, diversifying and expanding the teacher pipeline, and strengthening leadership and advancement opportunities for educators.
“Sen. Sanders’s bill, the Pay Teachers Act, will help close the pay gap by significantly increasing federal investments in public schools and raising annual teacher salaries to at least $60,000—as well as providing increases throughout teachers’ careers—to help ensure they are paid a livable and competitive salary,” said AFT President Randi Weingarten. “It would also invest in the teacher pipeline and leadership opportunities. This is a crucial federal investment to help sustain the teaching profession, which will directly help us provide greater opportunities to our students. At a time when others are abandoning public schools and our students, Sen. Sanders is proposing a necessary strategic remedy that will help attract teachers to the profession and retain them.”
“Across the country, most of us across race, place and background want the same thing – strong public schools where every student can thrive and strong communities that support them. In order to attract and retain the passionate, qualified educators that inspire our students, give them the one-on-one support, and do everything in their power to help each student succeed, we need to pay teachers like the professionals they are. America’s educators applaud Sen. Bernie Sanders for introducing the Pay Teachers Act, which takes steps to ensure that our nation’s committed public school educators and educator support personnel receive professional recognition, including appropriate pay while also augmenting the current federal programs that support the educator pipeline. We urge Senators to support educators and cosponsor this common-sense legislation that invests in our students, educators, and public schools,” said NEA Vice President Princess Moss.
The reintroduction of the Pay Teachers Act comes as the Trump administration continues to illegally withhold nearly $5.5 billion in critical funding for public education that was appropriated by Congress, including funds that states use to provide professional development for teachers and to pay teacher salaries. Sanders and his colleagues have repeatedly pushed for the administration to immediately release these funds.
More than 30 organizations endorsed the Teacher Pay Act, including American Federation of Teachers, National Education Association, National PTA and The Education Trust.
Read the bill text here.
Read a summary of the bill here.

MIL OSI USA News –

July 25, 2025

Category: KB

A comedy of tyranny

Indecencies on indignities

Peer review isn’t catching everything

AI is already helping police the literature

Reframing the scientific ideal