Technology – Page 32 – NewzIntel.com

MIL-OSI Submissions: Maritime News – Passenger Ship HANARIA Equipped with Yanmar’s Maritime Hydrogen Fuel Cell System Wins Marine Engineering of the Year 2024

Source: Yanmar Holdings

July 23, 2025 – Osaka, Japan – The passenger vessel HANARIA, equipped with Yanmar Power Technology Co., Ltd.’s GH240FC maritime hydrogen fuel cell system, has received the Marine Engineering of the Year 2024 (Dokou Memorial Award). The honor is awarded by the Japan Institute of Marine Engineering for outstanding technological innovation in the field. This year, the award recognized four companies: MOL Techno-Trade, Ltd., HONGAWARA Ship Yard Co., Ltd., Toyota Motor Corporation, and Yanmar Power Technology, a subsidiary of Yanmar Holdings.

HANARIA is Japan’s first hybrid passenger ship powered by both hydrogen and biodiesel. Operated by MOL Techno-Trade, Ltd., the vessel features Yanmar’s first maritime hydrogen fuel cell system, a proprietary lithium-ion battery system developed by Yanmar, and an integrated management system that controls all onboard power. It features two operating modes: a zero-emission mode using only hydrogen fuel cell systems and lithium-ion batteries, and a hybrid mode that combines hydrogen fuel cells, lithium-ion batteries, and a biodiesel generator running in parallel.

The onboard systems aim to reduce the environmental footprint of vessels—a challenge in the hard-to-electrify maritime sector—while also enhancing passenger comfort by significantly cutting noise, vibration and exhaust odor.

Furthermore, HANARIA has been selected for the “Ship of the Year 2024,” an award presented by the Japan Society of Naval Architects and Ocean Engineers that recognizes vessels demonstrating technical, artistic, and social excellence. This marks the first time in history that a vessel has received both the “Marine Engineering of the Year” and the “Ship of the Year” awards.

The Yanmar Group continues to advance its sustainability goals through its YANMAR GREEN CHALLENGE 2050 initiative and remains committed to providing decarbonization solutions that meet customer needs.

References

Press release (November 9, 2023): Yanmar Makes First Delivery of Maritime Hydrogen Fuel Cell System to Hybrid Passenger Ship

https://www.yanmar.com/global/marinecommercial/news/2023/11/09/130776.html

Press release (July 9, 2025): Yanmar Maritime Hydrogen Fuel Cell System Wins Red Dot Design Award 2025

https://www.yanmar.com/global/news/2025/07/09/154079.html

About Yanmar

With beginnings in Osaka, Japan, in 1912, Yanmar was the first ever to succeed in making a compact diesel engine of a practical size in 1933. A pioneer in diesel engine technology, Yanmar is a global innovator in a wide range of industrial equipment, from small and large engines, agricultural machinery and facilities, construction equipment, energy systems, marine, to machine tools, and components — Yanmar’s global business operations span seven domains. On land, at sea, and in the city, Yanmar provides advanced solutions to the challenges customers face, towards realizing A Sustainable Future. For more details, please visit the official website of Yanmar Holdings Co., Ltd.

MIL OSI – Submitted News –

July 24, 2025

MIL-OSI USA: Gov. Kemp Announces TCSG, USG Sign First Articulation Agreement Since Passage of Top State for Talent Act

Source: US State of Georgia

ATLANTA – Governor Brian Kemp today announced that the Technical College System of Georgia (TCSG) and the University System of Georgia (USG) signed an articulation agreement to help nursing students seamlessly advance their education and careers, the first of its kind following the passage of HB 192, the Top State for Talent Act. The agreement allows graduates of TCSG’s associate degree in nursing programs to transfer directly into participating USG institutions to complete a Bachelor of Science in Nursing (BSN), establishing a true 2+2 transfer model between the two systems.

“Georgia’s success as the No. 1 state for business depends on a strong pipeline of talent, especially in critical fields like healthcare,” said Governor Brian Kemp. “This agreement between TCSG and USG is a perfect example of how our state is working together to expand opportunities for students, strengthen our workforce, and ensure that every Georgian has the opportunity to succeed.”

Governor Kemp has made aligning the state’s workforce pipeline with the needs of employers a top priority. The Top State for Talent Initiative, including the state’s first unified high-demand career list, seeks to bring private and public sector leaders together to help Georgians pursue the opportunities available to them statewide.

This partnership between TCSG and USC supports the initiative by developing and retaining a highly skilled healthcare workforce. Under the agreement, students who graduate from a TCSG college with an Associate of Science in Nursing (ASN) will be eligible for admission into BSN programs at participating USG institutions. This streamlined transition offers students a cost-effective and accessible option to continue their education without interruption or loss of credit.

“With this agreement, we’re eliminating barriers and opening doors for more Georgians to pursue rewarding careers in nursing,” said TCSG Commissioner Greg Dozier. “It’s a strategic move that helps our students, our healthcare partners, and our communities—especially as we work together to fill critical nursing shortages across the state.”

“Georgia’s growing population means a greater demand for healthcare, and this partnership helps meet it by preparing more nurses, especially in rural and underserved areas,” said USG Chancellor Sonny Perdue. “As we align programs, we’re making it easier for students to grow their skills. It’s a smart investment that drives student success, expands access to care, and builds a more prosperous Georgia.”

In addition to easing the transition between systems, the agreement expands career pathways for students by creating a clear route from an associate degree to a bachelor’s degree in one of the state’s most in-demand fields. It is part of a broader strategy by TCSG and USG to increase educational attainment and create upward mobility for students pursuing careers in high-demand industries, including nursing, healthcare, and allied health professions.

For more information, visit www.tcsg.edu or www.usg.edu.

MIL OSI USA News –

July 24, 2025

MIL-OSI: TowneBank Reports Second Quarter 2025 Earnings

Source: GlobeNewswire (MIL-OSI)

Suffolk, Va., July 23, 2025 (GLOBE NEWSWIRE) — TowneBank (the “Company” or “Towne”) (NASDAQ: TOWN) today reported earnings for the quarter ended June 30, 2025 of $38.84 million, or $0.51 per diluted share, compared to $42.86 million, or $0.57 per diluted share, for the quarter ended June 30, 2024. Excluding certain items affecting comparability, core earnings (non-GAAP) were $61.34 million, or $0.81 per diluted share, in the current quarter compared to $42.56 million, or $0.57 per diluted share, for the quarter ended June 30, 2024.

“Our Company delivered a record revenue quarter highlighting the strength of our Main Street banking strategy. Organic loan growth during the second quarter climbed nearly 5% on an annualized basis while credit trends continue to demonstrate best in class metrics. Our margin expanded 24 basis points during the quarter fueled by our partnership with Village Bank in our Richmond market. As we look ahead, we believe this quarter demonstrates the strength of our diversified revenue model and disciplined approach to strategic partnerships with focused execution. I wish to thank our more than 2,800 family members who work each day to Serve Others and Enrich Lives,” said G. Robert Aston, Jr., Executive Chairman.

Highlights for Second Quarter 2025:

Total revenues were a record $207.44 million, an increase of $32.47 million, or 18.56%, compared to second quarter 2024. Net interest income increased $28.17 million, driven by a combination of increased interest income and lower deposit costs. Additionally, noninterest income increased $4.31 million.
Towne successfully completed the acquisition of Village Bank and Trust Financial Corp. and its wholly-owned bank subsidiary, Village Bank (“Village”), in April 2025. Included in that acquisition were $576.57 million in loans, $74.31 million in securities, and $637.49 million in deposits.
Total deposits were $15.33 billion, an increase of $1.06 billion, or 7.40%, compared to second quarter 2024. Total deposits increased 4.93%, or $0.72 billion, in comparison to March 31, 2025. Excluding $637.49 million in acquired deposits, total deposits would have increased $418.64 million, or 2.93% compared to the prior year and $82.68 million, or 2.27% on an annualized basis, compared to the linked quarter.
Noninterest-bearing deposits increased 10.47%, to $4.75 billion, compared to second quarter 2024 and represented 31.02% of total deposits. Compared to the linked quarter, noninterest-bearing deposits increased 10.22%. The increase includes noninterest-bearing deposits of $238.54 million acquired in the Village transaction.
Loans held for investment were $12.36 billion, an increase of $0.91 billion, or 7.93%, compared to June 30, 2024, and $0.71 billion, or 6.07% compared to March 31, 2025. Excluding loans acquired in the quarter, total loans would have increased $331.35 million, or 2.89%, compared to the prior year and $130.35 million, or 4.49% on an annualized basis, compared to the linked quarter.
Annualized return on common shareholders’ equity was 7.14% compared to 8.49% in second quarter 2024. Annualized return on average tangible common shareholders’ equity (non-GAAP) was 10.44% compared to 12.16% in second quarter 2024.
Net interest margin was 3.38% for the quarter and tax-equivalent net interest margin (non-GAAP) was 3.40%, including purchase accounting accretion of 6 basis points, compared to the prior year quarter net interest margin of 2.86% and tax-equivalent net interest margin (non-GAAP) of 2.89%, including purchase accounting accretion of 5 basis points.
Compared to the linked quarter, both net interest margin and spread increased 24 basis points.
The effective tax rate was 22.23% in the quarter compared to 15.93% in second quarter 2024 and 13.95% in the linked quarter. The higher tax rate in the current quarter was due to an increase in state tax expense, an adjustment to deferred income tax related to the repurchase of noncontrolling interests in Resort Property Management, and nondeductible expenses related to the Village acquisition. Management expects the tax rate to normalize in the second half of 2025.

“We were pleased to close our Village Bank partnership and successfully complete the systems integration during the second quarter. Internally, our focus will shift during the second half of the year to closing our recently announced partnership with Old Point. Both of these strategic transactions will provide meaningful earnings momentum as we manage through an uncertain economic environment,” stated William I. Foster III, President and Chief Executive Officer.

Quarterly Net Interest Income:

Net interest income was $137.21 million compared to $109.05 million for the quarter ended June 30, 2024.
On an average basis, loans held for investment, with a yield of 5.56%, represented 75.52% of earning assets at June 30, 2025 compared to a yield of 5.45% and 74.76% of earning assets at June 30, 2024.
The cost of interest-bearing deposits was 2.61% for the quarter ended June 30, 2025, compared to 3.32% in second quarter 2024. Interest expense on deposits decreased $13.87 million, or 16.91%, from the prior year quarter driven by decreases in rate.
Our total cost of deposits decreased to 1.80% from 2.32% for the quarter ended June 30, 2024 due to lower interest-bearing deposit rates. The Federal Reserve Open Market Committee lowered the overnight funds rate a total of 100 basis points in the last four months of 2024.
Average interest-earning assets totaled $16.29 billion at June 30, 2025 compared to $15.34 billion at June 30, 2024, an increase of 6.17%. The Company anticipates approximately $885 million in cash flows from its securities portfolio to be available for reinvestment in the next 24 months.
Average interest-bearing liabilities totaled $10.80 billion, an increase of $509.83 million, or 4.96%, from prior year, driven by demand and money market deposit growth. Borrowings increased over the linked quarter, driven by debt assumed in the Village acquisition, but were nearly level with prior year.

Quarterly Provision for Credit Losses:

The quarterly provision for credit losses was an expense of $6.41 million compared to a benefit of $177 thousand in the prior year quarter and an expense of $2.42 million in the linked quarter. The provision includes an initial provision for credit losses of $6.24 million related to loans and commitments acquired in the Village transaction.
The allowance for credit losses on loans increased $8.06 million in second quarter 2025, compared to the linked quarter, $7.75 million of which resulted from the April 2025 acquisition of Village. In addition to the $6.06 million initial acquisition related provision for the purchased loan portfolio we increased our allowance $1.69 million for purchased credit deteriorated loan marks. Additional allowance increases were primarily driven by loan portfolio growth.
Net loan charge-offs were $19 thousand in the quarter, and $626 thousand in the linked quarter, compared to net recoveries of $19 thousand in the prior year quarter.
The ratio of net charge-offs to average loans on an annualized basis was 0.00% in both second quarter 2025 and 2024, compared to 0.02% in the linked quarter.
The allowance for credit losses on loans represented 1.09% of total loans at June 30, 2025, compared to 1.10% at June 30, 2024, and 1.08% at March 31, 2025. The allowance for credit losses on loans was 16.81 times nonperforming loans compared to 19.08 times at June 30, 2024 and 19.15 times at March 31, 2025.

Quarterly Noninterest Income:

Total noninterest income was $70.23 million compared to $65.92 million in 2024, an increase of $4.31 million, or 6.53%.
Total net insurance commissions increased $1.65 million, or 6.85%, to $25.68 million in second quarter 2025 compared to 2024. This increase was primarily attributable to organic growth-related property and casualty commissions.
Property management fee revenue was $15.56 million in second quarter 2025, an increase of 8.69%, or $1.24 million, compared to second quarter 2024. The increase was driven by an acquisition in 2024 and changes to our fee structure.
Residential mortgage banking income was $13.56 million compared to $13.42 million in second quarter 2024. Loan volume increased to $671.47 million in second quarter 2025 from $626.98 million in second quarter 2024. Residential purchase activity was 92.37% of production volume in the second quarter of 2025 compared to 94.85% in second quarter 2024.
At 3.13%, gross margins on residential mortgage sales decreased 5 basis points from the linked quarter and 15 basis points from 3.28% in second quarter 2024.

Quarterly Noninterest Expense:

Total noninterest expense was $150.67 million compared to $123.98 million in 2024, an increase of $26.68 million, or 21.52%. This increase was primarily attributable to acquisition-related expenses and growth in salaries and employee benefits.
The April 2025 acquisition of Village and the acquisition of Old Point Financial Corporation expected to be completed third quarter 2025, resulted in $18.74 million in acquisition-related expenses in the quarter.
Salaries and benefits expense increased $7.01 million, driven by annual base salary adjustments that went into effect October 2024, higher production incentives, and an increase in banking personnel, primarily related to the Village acquisition.

Consolidated Balance Sheet Highlights:

Total assets were $18.26 billion for the quarter ended June 30, 2025, a $0.75 billion increase compared to $17.51 billion at March 31, 2025. Total assets increased $1.20 billion, or 7.01%, from $17.07 billion at June 30, 2024.
Loans held for investment increased $0.91 billion, or 7.93%, compared to prior year and $0.71 billion, or 6.07%, compared to the linked quarter. The Company continues to maintain a strong credit discipline.
Mortgage loans held for sale increased $37.98 million, or 18.92%, compared to prior year and $70.23 million, or 41.68%, compared to the linked quarter, driven by production levels.
Total deposits increased $1.06 billion, or 7.40%, driven by interest-bearing demand deposits, compared to prior year. In the linked quarter comparison, total deposits increased $0.72 billion, or 4.93%.
Noninterest-bearing deposits increased $450.57 million, or 10.47%, compared to prior year and $440.79 million, or 10.22%, compared to the linked quarter.
Total borrowings decreased $1.05 million, or 0.36%, compared to second quarter 2024 but increased $10.01 million, or 3.52%, compared to the linked quarter, due to acquired FHLB borrowings and subordinated debt.

Investment Securities:

Total investment securities were $2.78 billion compared to $2.70 billion at March 31, 2025 and $2.49 billion at June 30, 2024. The weighted average duration of the portfolio at June 30, 2025 was 3.2 years. The carrying value of the available-for-sale debt securities portfolio included net unrealized losses of $113.14 million at June 30, 2025, compared to $119.25 million at March 31, 2025 and $172.93 million at June 30, 2024, with the changes in fair value due to the change in interest rates.

Loans and Asset Quality:

Total loans held for investment were $12.36 billion at June 30, 2025, $11.65 billion at March 31, 2025, and $11.45 billion at June 30, 2024. Excluding loans acquired in the quarter, total loans would have increased $331.35 million, or 2.89%, compared to the prior year and $130.35 million, or 4.49% on an annualized basis, compared to the linked quarter. Real estate construction and development loans declined compared to the prior year, but were offset by increases in non-owner and owner occupied real estate and multifamily commercial real estate.
Nonperforming assets were $9.29 million, or 0.05% of total assets, compared to $7.16 million, or 0.04%, at June 30, 2024, and $7.37 million, or 0.04%, at the linked quarter end.
Nonperforming loans were 0.06% of period end loans at June 30, 2025, June 30, 2024, and the linked quarter end.
Foreclosed property consisted of $966 thousand in other real estate owned and $340 thousand in repossessed autos, for a total of $1.31 million in foreclosed property at June 30, 2025, compared to $581 thousand in repossessed autos, for a total of $581 thousand in foreclosed property at June 30, 2024.

Deposits and Borrowings:

Total deposits were $15.33 billion compared to $14.61 billion at March 31, 2025 and $14.27 billion at June 30, 2024. Excluding $0.64 billion in acquired deposits, total deposits would have increased $418.64 million, or 2.93%, compared to the prior year and $82.68 million, or 2.27% on an annualized basis, compared to the linked quarter.
The ratio of period end loans held for investment to deposits was 80.63% compared to 79.77% at March 31, 2025 and 80.24% at June 30, 2024.
Noninterest-bearing deposits were 31.02% of total deposits at June 30, 2025 compared to 29.53% at March 31, 2025 and 30.15% at June 30, 2024. Noninterest-bearing deposits increased $450.57 million, or 10.47%, compared to June 30, 2024, and $440.79 million, or 10.22%, compared to the linked quarter.
Total borrowings were $294.12 million compared to $284.10 million at March 31, 2025 and $295.17 million at June 30, 2024.

Capital:

Common equity tier 1 capital ratio of 11.77%⁽¹⁾.
Tier 1 leverage capital ratio of 9.93%⁽¹⁾.
Tier 1 risk-based capital ratio of 11.82%⁽¹⁾.
Total risk-based capital ratio of 14.49% ⁽¹⁾ .
Book value per common share was $29.58 compared to $29.19 at March 31, 2025 and $27.62 at June 30, 2024.
Tangible book value per common share (non-GAAP) was $21.98 compared to $22.36 at March 31, 2025 and $20.65 at June 30, 2024.

⁽¹⁾ Preliminary.

About TowneBank:
Founded in 1999, TowneBank is a company built on relationships, offering a full range of banking and other financial services, with a focus of serving others and enriching lives. Dedicated to a culture of caring, Towne values all employees and members by embracing their diverse talents, perspectives, and experiences.

Today, TowneBank operates over 55 banking offices throughout Hampton Roads and Central Virginia, as well as Northeastern and Central North Carolina – serving as a local leader in promoting the social, cultural, and economic growth in each community. Towne offers a competitive array of business and personal banking solutions, delivered with only the highest ethical standards. Experienced local bankers providing a higher level of expertise and personal attention with local decision-making are key to the TowneBank strategy. TowneBank has grown its capabilities beyond banking to provide expertise through its affiliated companies that include Towne Wealth Management, Towne Insurance Agency, Towne Benefits, TowneBank Mortgage, TowneBank Commercial Mortgage, Berkshire Hathaway HomeServices RW Towne Realty, Towne 1031 Exchange, and Towne Vacations. With total assets of $18.26 billion as of June 30, 2025, TowneBank is one of the largest banks headquartered in Virginia.

Non-GAAP Financial Measures:
This press release contains certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Such non-GAAP financial measures include the following: fully tax-equivalent net interest margin, core operating earnings, core net income, tangible book value per common share, total risk-based capital ratio, tier one leverage ratio, tier one capital ratio, and the tangible common equity to tangible assets ratio. Management uses these non-GAAP financial measures to assess the performance of TowneBank’s core business and the strength of its capital position. Management believes that these non-GAAP financial measures provide meaningful additional information about TowneBank to assist investors in evaluating operating results, financial strength, and capitalization. The non-GAAP financial measures should be considered as additional views of the way our financial measures are affected by significant charges for credit costs and other factors. These non-GAAP financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-GAAP financial measures used in this presentation are referenced in a footnote or in the appendix to this presentation.

Forward-Looking Statements:
This press release contains certain forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts, but instead represent only the beliefs, expectations, or opinions of TowneBank and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward-looking statements may be identified by the use of such words as: “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional terms, such as “will,” “would,” “should,” “could,” “may,” “likely,” “probably,” or “possibly.” These statements may address issues that involve significant risks, uncertainties, estimates, and assumptions made by management. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among others, competitive pressures in the banking industry that may increase significantly; changes in the interest rate environment that may reduce margins and/or the volumes and values of loans made or held as well as the value of other financial assets held; an unforeseen outflow of cash or deposits or an inability to access the capital markets, which could jeopardize our overall liquidity or capitalization; changes in the creditworthiness of customers and the possible impairment of the collectability of loans; insufficiency of our allowance for credit losses due to market conditions, inflation, changing interest rates or other factors; adverse developments in the financial industry generally, such as the 2023 bank failures, responsive measures to mitigate and manage such developments, related supervisory and regulatory actions and costs, and related impacts on customer and client behavior; general economic conditions, either nationally or regionally, that may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduced demand for credit or other services; geopolitical instability, including wars, conflicts, trade restrictions and tariffs, civil unrest, and terrorist attacks and the potential impact, directly or indirectly, on our business; the effects of weather-related or natural disasters, which may negatively affect our operations and/or our loan portfolio and increase our cost of conducting business; public health events (such as the COVID-19 pandemic) and governmental and societal responses to them; changes in the legislative or regulatory environment, including changes in accounting standards and tax laws, that may adversely affect our business; our ability to successfully integrate the businesses from recently completed and pending acquisitions, including our pending merger with Old Point Financial Corporation (“Old Point”), to the extent that it may take longer or be more difficult, time-consuming, or costly to accomplish than expected; our ability to close the transaction with Old Point when expected or at all because required approvals and other conditions to closing are not received or satisfied on the proposed terms or on the anticipated schedule; deposit attrition, operating costs, customer losses, and business disruption associated with recently completed or pending acquisitions, including reputational risk and adverse effects on relationships with employees, customers or other business partners, that may be greater than expected; costs or difficulties related to the integration of the businesses we have acquired that may be greater than expected; expected growth opportunities or cost savings associated with recently completed or pending acquisitions may not be fully realized or realized within the expected time frame; the diversion of management’s attention and time from ongoing business operations and opportunities on merger related matters; cybersecurity threats or attacks, whether directed at us or at vendors or other third parties with which we interact, the implementation of new technologies, and the ability to develop and maintain reliable electronic systems; our competitors may have greater financial resources and develop products that enable them to compete more successfully; changes in business conditions; changes in the securities market; and changes in our local economy with regard to our market area, including any adverse impact of actual and proposed cuts to federal spending, including defense, security and military spending, on the Greater Hampton Roads economy. Any forward-looking statements made by us or on our behalf speak only as of the date they are made or as of the date indicated, and we do not undertake any obligation to update forward-looking statements as a result of new information, future events, or otherwise. For additional information on factors that could materially influence forward-looking statements included in this report, see the “Risk Factors” in TowneBank’s Annual Report on Form 10-K for the year ended December 31, 2024 and related disclosures in other filings that have been, or will be, filed by TowneBank with the Federal Deposit Insurance Corporation.

Media contact:
G. Robert Aston, Jr., Executive Chairman, 757-638-6780
William I. Foster III, President and Chief Executive Officer, 757-417-6482

Investor contact:
William B. Littreal, Chief Financial Officer, 757-638-6813

TOWNEBANK
Selected Financial Highlights (unaudited)
(dollars in thousands, except per share data)

		Three Months Ended
		June 30,			March 31,			December 31,			September 30,			June 30,
			2025			2025			2024			2024			2024
Income and Performance Ratios:
	Total revenue	$	207,442		$	192,044		$	177,160		$	174,518		$	174,970
	Net income		39,269			50,887			41,441			43,126			43,039
	Net income available to common shareholders		38,837			50,592			41,265			42,949			42,856
	Net income per common share – diluted		0.51			0.67			0.55			0.57			0.57
	Book value per common share		29.58			29.19			28.43			28.59			27.62
	Book value per common share – tangible ^(non-GAAP)		21.98			22.36			21.55			21.65			20.65
	Return on average assets		0.86	%		1.19	%		0.95	%		1.00	%		1.01	%
	Return on average assets – tangible ^(non-GAAP)		0.96	%		1.29	%		1.03	%		1.09	%		1.11	%
	Return on average equity		7.12	%		9.50	%		7.64	%		8.12	%		8.43	%
	Return on average equity – tangible ^(non-GAAP)		10.39	%		13.08	%		10.68	%		11.42	%		12.03	%
	Return on average common equity		7.14	%		9.57	%		7.70	%		8.18	%		8.49	%
	Return on average common equity – tangible ^(non-GAAP)		10.44	%		13.21	%		10.79	%		11.54	%		12.16	%
	Noninterest income as a percentage of total revenue		33.85	%		37.27	%		33.36	%		35.66	%		37.68	%
Regulatory Capital Ratios (1):
	Common equity tier 1		11.77	%		12.75	%		12.77	%		12.63	%		12.43	%
	Tier 1		11.82	%		12.87	%		12.89	%		12.76	%		12.55	%
	Total		14.49	%		15.65	%		15.68	%		15.54	%		15.34	%
	Tier 1 leverage ratio		9.93	%		10.61	%		10.36	%		10.38	%		10.25	%
Asset Quality:
	Allowance for credit losses on loans to nonperforming loans	16.81x			19.15x			16.69x			18.70x			19.08x
	Allowance for credit losses on loans to period end loans		1.09	%		1.08	%		1.08	%		1.08	%		1.10	%
	Nonperforming loans to period end loans		0.06	%		0.06	%		0.06	%		0.06	%		0.06	%
	Nonperforming assets to period end assets		0.05	%		0.04	%		0.05	%		0.04	%		0.04	%
	Net charge-offs (recoveries) to average loans (annualized)		—	%		0.02	%		0.01	%		0.02	%		—	%
	Net charge-offs (recoveries)	$	19		$	626		$	382		$	677		$	(19	)

	Nonperforming loans	$	7,982		$	6,586		$	7,424		$	6,588		$	6,582
	Foreclosed property		1,306			786			443			884			581
	Total nonperforming assets	$	9,288		$	7,372		$	7,867		$	7,472		$	7,163
	Loans past due 90 days and still accruing interest	$	210		$	15		$	1,264		$	510		$	368
	Allowance for credit losses on loans	$	134,187		$	126,131		$	123,923		$	123,191		$	125,552
Mortgage Banking:
	Loans originated, mortgage	$	494,108		$	300,699		$	385,238		$	421,571		$	430,398
	Loans originated, joint venture		177,359			144,495			180,188			176,612			196,583
	Total loans originated	$	671,467		$	445,194		$	565,426		$	598,183		$	626,981
	Number of loans originated		1,750			1,181			1,489			1,637			1,700
	Number of originators		166			161			160			159			169
	Purchase %		92.37	%		89.94	%		89.46	%		91.49	%		94.85	%
	Loans sold	$	596,009		$	475,518		$	629,120		$	526,998		$	605,134
	Rate lock asset	$	2,186		$	1,880		$	1,150		$	1,548		$	1,930
	Gross realized gain on sales and fees as a % of loans originated		3.13	%		3.18	%		3.25	%		3.28	%		3.28	%
Other Ratios:
	Net interest margin		3.38	%		3.14	%		2.99	%		2.90	%		2.86	%
	Net interest margin-fully tax-equivalent ^(non-GAAP)		3.40	%		3.17	%		3.02	%		2.93	%		2.89	%
	Average earning assets/total average assets		90.23	%		90.32	%		90.57	%		90.43	%		90.36	%
	Average loans/average deposits		81.09	%		80.01	%		78.71	%		80.07	%		80.80	%
	Average noninterest deposits/total average deposits		30.88	%		29.68	%		30.14	%		30.19	%		30.06	%
	Period end equity/period end total assets		12.26	%		12.66	%		12.50	%		12.58	%		12.24	%
	Efficiency ratio ^(non-GAAP)		70.71	%		67.10	%		70.28	%		70.93	%		68.98	%
	(1) Current reporting period regulatory capital ratios are preliminary.

TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)

Investment Securities										% Change
	Q2			Q2			Q1			Q2 25 vs.		Q2 25 vs.
*Available-for-sale securities, at fair value*		2025			2024			2025		Q2 24		Q1 25
U.S. agency securities	$	345,808		$	281,934		$	320,190		22.66	%	8.00	%
U.S. Treasury notes		78,746			27,701			78,184		184.27	%	0.72	%
Municipal securities		438,490			442,474			439,379		(0.90	)%	(0.20	)%
Trust preferred and other corporate securities		115,126			88,228			98,463		30.49	%	16.92	%
Mortgage-backed securities issued by GSEs and GNMA		1,577,325			1,411,883			1,535,217		11.72	%	2.74	%
Allowance for credit losses		(1,520	)		(1,541	)		(1,262	)	(1.36	)%	20.44	%
Total	$	2,553,975		$	2,250,679		$	2,470,171		13.48	%	3.39	%
*Gross unrealized gains (losses) reflected in financial statements*
Total gross unrealized gains	$	6,048		$	1,983		$	5,909		204.99	%	2.35	%
Total gross unrealized losses		(119,186	)		(174,911	)		(125,156	)	(31.86	)%	(4.77	)%
Net unrealized gains (losses) and other adjustments on AFS securities	$	(113,138	)	$	(172,928	)	$	(119,247	)	(34.58	)%	(5.12	)%
*Held-to-maturity securities, at amortized cost*
U.S. agency securities	$	92,973		$	102,234		$	92,805		(9.06	)%	0.18	%
U.S. Treasury notes		96,250			97,171			96,481		(0.95	)%	(0.24	)%
Municipal securities		5,414			5,318			5,390		1.81	%	0.45	%
Trust preferred corporate securities		2,094			2,147			2,107		(2.47	)%	(0.62	)%
Mortgage-backed securities issued by GSEs		5,201			5,618			5,235		(7.42	)%	(0.65	)%
Allowance for credit losses		(67	)		(79	)		(68	)	(15.19	)%	(1.47	)%
Total	$	201,865		$	212,409		$	201,950		(4.96	)%	(0.04	)%

Total gross unrealized gains	$	214		$	175		$	176		22.29	%	21.59	%
Total gross unrealized losses		(5,148	)		(12,880	)		(6,563	)	(60.03	)%	(21.56	)%
Net unrealized gains (losses) in HTM securities	$	(4,934	)	$	(12,705	)	$	(6,387	)	(61.16	)%	(22.75	)%
Total unrealized gains (losses) on AFS and HTM securities	$	(118,072	)	$	(185,633	)	$	(125,634	)	(36.39	)%	(6.02	)%
										% Change
Loans Held For Investment	Q2			Q2			Q1			Q2 25 vs.		Q2 25 vs.
		2025			2024			2025		Q2 24		Q1 25
Real estate – construction and development	$	1,072,625		$	1,190,768		$	1,006,086		(9.92	)%	6.61	%
Commercial real estate – owner occupied		1,815,900			1,673,582			1,654,401		8.50	%	9.76	%
Commercial real estate – non-owner occupied		3,557,175			3,155,958			3,329,728		12.71	%	6.83	%
Real estate – multifamily		887,083			682,537			841,330		29.97	%	5.44	%
Residential 1-4 family		1,997,395			1,887,420			1,886,107		5.83	%	5.90	%
HELOC		480,610			408,273			429,152		17.72	%	11.99	%
Commercial and industrial business (C&I)		1,370,564			1,297,538			1,337,254		5.63	%	2.49	%
Government		510,902			517,954			511,676		(1.36	)%	(0.15	)%
Indirect		579,041			558,216			570,795		3.73	%	1.44	%
Consumer loans and other		88,378			79,501			86,217		11.17	%	2.51	%
Total	$	12,359,673		$	11,451,747		$	11,652,746		7.93	%	6.07	%

										% Change
Deposits	Q2			Q2			Q1			Q2 25 vs.		Q2 25 vs.
		2025			2024			2025		Q2 24		Q1 25
Noninterest-bearing demand	$	4,754,340		$	4,303,773		$	4,313,553		10.47	%	10.22	%
Interest-bearing:
Demand and money market accounts		7,654,317			6,940,086			7,463,355		10.29	%	2.56	%
Savings		332,108			312,881			312,151		6.15	%	6.39	%
Certificates of deposits		2,587,951			2,715,848			2,519,489		(4.71	)%	2.72	%
Total		15,328,716			14,272,588			14,608,548		7.40	%	4.93	%

TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)

	Three Months Ended								Three Months Ended								Three Months Ended
	June 30, 2025								March 31, 2025								June 30, 2024
				Interest			Average					Interest			Average					Interest			Average
	Average			Income/			Yield/		Average			Income/			Yield/		Average			Income/			Yield/
	Balance			Expense			Rate (1)		Balance			Expense			Rate (1)		Balance			Expense			Rate (1)
Assets:
Loans (net of unearned income and deferred costs)	$	12,304,172		$	170,520		5.56	%	$	11,527,915		$	153,068		5.38	%	$	11,471,669		$	155,374		5.45	%
Taxable investment securities		2,598,093			23,361		3.60	%		2,478,048			21,301		3.44	%		2,368,476			21,671		3.66	%
Tax-exempt investment securities		172,083			1,802		4.19	%		176,081			1,860		4.23	%		156,503			1,521		3.89	%
Total securities		2,770,176			25,163		3.63	%		2,654,129			23,161		3.49	%		2,524,979			23,192		3.67	%
Interest-bearing deposits		1,045,727			10,241		3.93	%		1,199,650			11,801		3.99	%		1,182,816			14,512		4.93	%
Mortgage loans held for sale		172,102			2,770		6.44	%		164,358			2,653		6.46	%		165,392			2,945		7.12	%
Total earning assets		16,292,177			208,694		5.14	%		15,546,052			190,683		4.97	%		15,344,856			196,023		5.14	%
Less: allowance for loan losses		(131,837	)							(124,265	)							(126,792	)
Total nonearning assets		1,896,640								1,790,075								1,764,418
Total assets	$	18,056,980							$	17,211,862							$	16,982,482
Liabilities and Equity:
Interest-bearing deposits
Demand and money market	$	7,590,290		$	42,054		2.22	%	$	7,279,365		$	40,606		2.26	%	$	6,896,176		$	48,161		2.81	%
Savings		337,807			704		0.84	%		312,118			714		0.93	%		317,774			845		1.07	%
Certificates of deposit		2,560,313			25,394		3.98	%		2,540,438			25,813		4.12	%		2,715,615			33,017		4.89	%
Total interest-bearing deposits		10,488,410			68,152		2.61	%		10,131,921			67,133		2.69	%		9,929,565			82,023		3.32	%
Borrowings		34,799			(341	)	(3.88	)%		29,606			(300	)	(4.05	)%		100,165			1,627		6.43	%
Subordinated debt, net		272,448			2,609		3.83	%		260,070			2,304		3.54	%		256,093			2,236		3.49	%
Total interest-bearing liabilities		10,795,657			70,420		2.62	%		10,421,597			69,137		2.69	%		10,285,823			85,886		3.36	%
Demand deposits		4,685,835								4,276,586								4,267,590
Other noninterest-bearing liabilities		387,166								353,665								383,447
Total liabilities		15,868,658								15,051,848								14,936,860
Shareholders’ equity		2,188,322								2,160,014								2,045,622
Total liabilities and equity	$	18,056,980							$	17,211,862							$	16,982,482
Net interest income (tax-equivalent basis) (4)				$	138,274							$	121,546							$	110,137
Reconciliation of Non-GAAP Financial Measures

Tax-equivalent basis adjustment					(1,061	)							(1,068	)							(1,089	)
Net interest income (GAAP)				$	137,213							$	120,478							$	109,048

Interest rate spread (2)(4)							2.52	%							2.28	%							1.78	%
Interest expense as a percent of average earning assets							1.73	%							1.80	%							2.25	%
Net interest margin (tax-equivalent basis) (3)(4)							3.40	%							3.17	%							2.89	%
Total cost of deposits							1.80	%							1.89	%							2.32	%

(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory tax rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax-equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax-equivalent.
(4) Non-GAAP.

TOWNEBANK
Average Balances, Yields and Rate Paid (unaudited)
(dollars in thousands)

	Six Months Ended								Six Months Ended
	June 30, 2025								June 30, 2024
				Interest			Average					Interest			Average
	Average			Income/			Yield/		Average			Income/			Yield/
	Balance			Expense			Rate (1)		Balance			Expense			Rate (1)
Assets:
Loans (net of unearned income and deferred costs)	$	11,918,188		$	323,586		5.48	%	$	11,425,496		$	307,186		5.41	%
Taxable investment securities		2,538,402			44,662		3.52	%		2,404,564			40,385		3.36	%
Tax-exempt investment securities		174,071			3,663		4.21	%		159,021			3,071		3.86	%
Total securities		2,712,473			48,325		3.56	%		2,563,585			43,456		3.39	%
Interest-bearing deposits		1,122,263			22,042		3.96	%		1,175,069			28,746		4.92	%
Mortgage loans held for sale		168,251			5,423		6.45	%		141,130			4,661		6.61	%
Total earning assets		15,921,175			399,376		5.06	%		15,305,280			384,049		5.05	%
Less: allowance for loan losses		(128,072	)							(127,102	)
Total nonearning assets		1,843,652								1,745,180
Total assets	$	17,636,755							$	16,923,358
Liabilities and Equity:
Interest-bearing deposits
Demand and money market	$	7,435,687		$	82,659		2.24	%	$	6,862,115		$	96,146		2.82	%
Savings		325,033			1,419		0.88	%		323,405			1,726		1.07	%
Certificates of deposit		2,550,430			51,207		4.05	%		2,649,777			62,539		4.75	%
Total interest-bearing deposits		10,311,150			135,285		2.65	%		9,835,297			160,411		3.28	%
Borrowings		32,217			(642	)	(3.96	)%		156,270			4,705		5.95	%
Subordinated debt, net		266,293			4,913		3.69	%		255,986			4,472		3.49	%
Total interest-bearing liabilities		10,609,660			139,556		2.65	%		10,247,553			169,588		3.33	%
Demand deposits		4,482,341								4,245,847
Other noninterest-bearing liabilities		370,508								387,010
Total liabilities		15,462,509								14,880,410
Shareholders’ equity		2,174,246								2,042,948
Total liabilities and equity	$	17,636,755							$	16,923,358
Net interest income (tax-equivalent basis)(4)				$	259,820							$	214,461
Reconciliation of Non-GAAP Financial Measures
Tax-equivalent basis adjustment					(2,129	)							(2,195	)
Net interest income (GAAP)				$	257,691							$	212,266

Interest rate spread (2)(4)							2.41	%							1.72	%
Interest expense as a percent of average earning assets							1.77	%							2.23	%
Net interest margin (tax-equivalent basis) (3)(4)							3.29	%							2.82	%
Total cost of deposits							1.84	%							2.29	%

(1) Yields and interest income are presented on a tax-equivalent basis using the federal statutory rate of 21%.
(2) Interest spread is the average yield earned on earning assets less the average rate paid on interest-bearing liabilities. Fully tax-equivalent.
(3) Net interest margin is net interest income expressed as a percentage of average earning assets. Fully tax-equivalent.
(4) Non-GAAP.

TOWNEBANK
Consolidated Balance Sheets
(dollars in thousands, except share data)


	June 30,			December 31,
		2025			2024
	(unaudited)			(audited)
ASSETS
Cash and due from banks	$	149,462		$	108,750
Interest-bearing deposits at FRB		838,315			1,127,878
Interest-bearing deposits in financial institutions		123,911			102,847
Total Cash and Cash Equivalents		1,111,688			1,339,475
Securities available for sale, at fair value (amortized cost of $2,668,633 and $2,509,970, and allowance for credit losses of $1,520 and $1,326 at June 30, 2025 and December 31, 2024, respectively)		2,553,975			2,353,365
Securities held to maturity, at amortized cost (fair value of $196,998 and $203,883 at June 30, 2025 and December 31, 2024, respectively)		201,932			212,352
Less: allowance for credit losses		(67	)		(77	)
Securities held to maturity, net of allowance for credit losses		201,865			212,275
Other equity securities		12,248			12,100
FHLB stock		13,428			12,136
Total Securities		2,781,516			2,589,876
Mortgage loans held for sale		238,742			200,460
Loans, net of unearned income and deferred costs		12,359,673			11,459,055
Less: allowance for credit losses on loans		(134,187	)		(123,923	)
Net Loans		12,225,486			11,335,132
Premises and equipment, net		392,056			368,876
Goodwill		499,709			457,619
Other intangible assets, net		74,186			60,171
BOLI		295,434			279,802
Other assets		645,779			615,479
TOTAL ASSETS	$	18,264,596		$	17,246,890

LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand	$	4,754,340		$	4,253,053
Interest-bearing:
Demand and money market accounts		7,654,317			7,329,669
Savings		332,108			311,841
Certificates of deposit		2,587,951			2,542,735
Total Deposits		15,328,716			14,437,298
Advances from the FHLB		12,838			3,218
Subordinated debt, net		260,430			260,001
Repurchase agreements and other borrowings		20,847			33,683
Total Borrowings		294,115			296,902
Other liabilities		402,823			357,063
TOTAL LIABILITIES		16,025,654			15,091,263
Preferred stock, authorized and unissued shares – 2,000,000		—			—
Common stock, $1.667 par value: 150,000,000 shares authorized;
75,421,737 and 75,255,205 shares issued at
June 30, 2025 and December 31, 2024, respectively		125,728			125,455
Capital surplus		1,130,728			1,122,147
Retained earnings		1,057,992			1,007,775
Common stock issued to deferred compensation trust, at cost:
1,107,681 and 1,046,121 shares at June 30, 2025 and December 31, 2024, respectively		(23,977	)		(21,868	)
Deferred compensation trust		23,977			21,868
Accumulated other comprehensive income (loss)		(83,103	)		(116,045	)
TOTAL SHAREHOLDERS’ EQUITY		2,231,345			2,139,332
Noncontrolling interest		7,597			16,295
TOTAL EQUITY		2,238,942			2,155,627
TOTAL LIABILITIES AND EQUITY	$	18,264,596		$	17,246,890

TOWNEBANK
Consolidated Statements of Income (unaudited)
(dollars in thousands, except per share data)


	Three Months Ended						Six Months Ended
	June 30,						June 30,
		2025			2024			2025			2024
INTEREST INCOME:
Loans, including fees	$	169,772		$	154,549		$	322,093		$	305,523
Investment securities		24,850			22,928			47,689			42,924
Interest-bearing deposits in financial institutions and federal funds sold		10,241			14,512			22,042			28,746
Mortgage loans held for sale		2,770			2,945			5,423			4,661
Total interest income		207,633			194,934			397,247			381,854
INTEREST EXPENSE:
Deposits		68,152			82,023			135,285			160,411
Advances from the FHLB		124			942			149			3,380
Subordinated debt, net		2,609			2,236			4,913			4,472
Repurchase agreements and other borrowings		(465	)		685			(791	)		1,325
Total interest expense		70,420			85,886			139,556			169,588
Net interest income		137,213			109,048			257,691			212,266
PROVISION FOR CREDIT LOSSES		6,410			(177	)		8,830			(1,054	)
Net interest income after provision for credit losses		130,803			109,225			248,861			213,320
NONINTEREST INCOME:
Residential mortgage banking income, net		13,561			13,422			23,922			23,899
Insurance commissions and related income, net		25,677			24,031			52,102			49,570
Property management income, net		15,556			14,312			35,056			31,085
Service charges on deposit accounts		3,642			3,353			6,969			6,431
Credit card merchant fees, net		1,794			1,662			3,491			3,213
Investment commissions, net		3,158			2,580			6,233			4,923
BOLI		1,992			3,238			3,864			5,080
Gain on sale of equity investment		—			—			2,000			—
Other income		4,849			3,324			8,158			5,531
Net gain on investment securities		—			—			—			74
Total noninterest income		70,229			65,922			141,795			129,806
NONINTEREST EXPENSE:
Salaries and employee benefits		78,362			71,349			153,440			142,726
Occupancy		9,791			9,717			19,124			19,139
Furniture and equipment		4,770			4,634			9,392			9,112
Amortization – intangibles		3,979			3,298			7,005			6,544
Software		6,835			7,056			13,128			13,156
Data processing		4,510			4,606			8,344			8,522
Professional fees		2,539			3,788			5,192			6,968
Advertising and marketing		3,228			3,524			7,701			8,106
FDIC and other insurance		3,032			2,133			5,893			6,491
Acquisition related expenses		18,737			19			19,157			614
Other expenses		14,882			13,860			32,825			28,197
Total noninterest expense		150,665			123,984			281,201			249,575
Income before income tax expense and noncontrolling interest		50,367			51,163			109,455			93,551
Provision for income tax expense		11,098			8,124			19,299			15,385
Net income	$	39,269		$	43,039		$	90,156		$	78,166
Net income attributable to noncontrolling interest		(432	)		(183	)		(727	)		(623	)
Net income attributable to TowneBank	$	38,837		$	42,856		$	89,429		$	77,543
Per common share information
Basic earnings	$	0.52		$	0.57		$	1.19		$	1.04
Diluted earnings	$	0.51		$	0.57		$	1.19		$	1.03
Cash dividends declared	$	0.27		$	0.25		$	0.52		$	0.50

TOWNEBANK
Consolidated Balance Sheets – Five Quarter Trend
(dollars in thousands, except share data)


	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
	(unaudited)			(unaudited)			(audited)			(unaudited)			(unaudited)
ASSETS
Cash and due from banks	$	149,462		$	126,526		$	108,750		$	131,068		$	140,028
Interest-bearing deposits at FRB		838,315			1,090,555			1,127,878			1,061,596			1,062,115
Interest-bearing deposits in financial institutions		123,911			100,249			102,847			103,400			99,303
Total Cash and Cash Equivalents		1,111,688			1,317,330			1,339,475			1,296,064			1,301,446
Securities available for sale		2,553,975			2,470,171			2,353,365			2,363,176			2,250,679
Securities held to maturity		201,932			202,018			212,352			212,422			212,488
Less: allowance for credit losses		(67	)		(68	)		(77	)		(77	)		(79	)
Securities held to maturity, net of allowance for credit losses		201,865			201,950			212,275			212,345			212,409
Other equity securities		12,248			12,223			12,100			12,681			13,566
FHLB stock		13,428			12,425			12,136			12,134			12,134
Total Securities		2,781,516			2,696,769			2,589,876			2,600,336			2,488,788
Mortgage loans held for sale		238,742			168,510			200,460			264,320			200,762
Loans, net of unearned income and deferred costs		12,359,673			11,652,746			11,459,055			11,412,518			11,451,747
Less: allowance for credit losses		(134,187	)		(126,131	)		(123,923	)		(123,191	)		(125,552	)
Net Loans		12,225,486			11,526,615			11,335,132			11,289,327			11,326,195
Premises and equipment, net		392,056			373,111			368,876			365,764			340,348
Goodwill		499,709			457,619			457,619			457,619			457,619
Other intangible assets, net		74,186			57,145			60,171			63,265			65,460
BOLI		295,434			280,344			279,802			279,325			277,434
Other assets		645,779			634,437			615,479			572,000			610,791
TOTAL ASSETS	$	18,264,596		$	17,511,880		$	17,246,890		$	17,188,020		$	17,068,843
LIABILITIES AND EQUITY
Deposits:
Noninterest-bearing demand	$	4,754,340		$	4,313,553		$	4,253,053		$	4,267,628		$	4,303,773
Interest-bearing:
Demand and money market accounts		7,654,317			7,463,355			7,329,669			6,990,103			6,940,086
Savings		332,108			312,151			311,841			319,970			312,881
Certificates of deposit		2,587,951			2,519,489			2,542,735			2,785,469			2,715,848
Total Deposits		15,328,716			14,608,548			14,437,298			14,363,170			14,272,588
Advances from the FHLB		12,838			3,029			3,218			3,405			3,591
Subordinated debt, net		260,430			260,198			260,001			256,444			256,227
Repurchase agreements and other borrowings		20,847			20,875			33,683			30,970			35,351
Total Borrowings		294,115			284,102			296,902			290,819			295,169
Other liabilities		402,823			402,252			357,063			371,316			411,770
TOTAL LIABILITIES		16,025,654			15,294,902			15,091,263			15,025,305			14,979,527

Preferred stock		—			—			—			—			—
Common stock, $1.667 par value		125,728			125,679			125,455			125,139			125,090
Capital surplus		1,131,536			1,123,330			1,122,147			1,117,279			1,115,759
Retained earnings		1,057,184			1,039,518			1,007,775			985,343			961,162
Common stock issued to deferred compensation
trust, at cost		(23,977	)		(21,969	)		(21,868	)		(22,224	)		(22,756	)
Deferred compensation trust		23,977			21,969			21,868			22,224			22,756
Accumulated other comprehensive income (loss)		(83,103	)		(87,869	)		(116,045	)		(81,482	)		(129,224	)
TOTAL SHAREHOLDERS’ EQUITY		2,231,345			2,200,658			2,139,332			2,146,279			2,072,787
Noncontrolling interest		7,597			16,320			16,295			16,436			16,529
TOTAL EQUITY		2,238,942			2,216,978			2,155,627			2,162,715			2,089,316
TOTAL LIABILITIES AND EQUITY	$	18,264,596		$	17,511,880		$	17,246,890		$	17,188,020		$	17,068,843

TOWNEBANK
Consolidated Statements of Income – Five Quarter Trend (unaudited)
(dollars in thousands, except share data)


	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
INTEREST INCOME:
Loans, including fees	$	169,772		$	152,322		$	154,933		$	155,792		$	154,549
Investment securities		24,850			22,839			22,236			22,334			22,928
Interest-bearing deposits in financial institutions and federal funds sold		10,241			11,801			15,796			15,249			14,512
Mortgage loans held for sale		2,770			2,653			3,087			3,247			2,945
Total interest income		207,633			189,615			196,052			196,622			194,934
INTEREST EXPENSE:
Deposits		68,152			67,133			75,885			82,128			82,023
Advances from the FHLB		124			25			26			29			942
Subordinated debt, net		2,609			2,304			2,261			2,237			2,236
Repurchase agreements and other borrowings		(465	)		(325	)		(177	)		(54	)		685
Total interest expense		70,420			69,137			77,995			84,340			85,886
Net interest income		137,213			120,478			118,057			112,282			109,048
PROVISION FOR CREDIT LOSSES		6,410			2,420			1,606			(1,100	)		(177	)
Net interest income after provision for credit losses		130,803			118,058			116,451			113,382			109,225
NONINTEREST INCOME:
Residential mortgage banking income, net		13,561			10,361			11,272			11,786			13,422
Insurance commissions and related income, net		25,677			26,424			23,265			25,727			24,031
Property management income, net		15,556			19,500			8,186			11,221			14,312
Service charges on deposit accounts		3,642			3,327			3,289			3,117			3,353
Credit card merchant fees, net		1,794			1,697			1,486			1,830			1,662
Investment commissions, net		3,158			3,075			3,195			2,835			2,580
BOLI		1,992			1,872			4,478			1,886			3,238
Other income		4,849			5,310			3,932			3,834			3,324
Total noninterest income		70,229			71,566			59,103			62,236			65,922
NONINTEREST EXPENSE:
Salaries and employee benefits		78,362			75,078			74,399			72,123			71,349
Occupancy		9,791			9,333			9,819			9,351			9,717
Furniture and equipment		4,770			4,621			4,850			4,657			4,634
Amortization – intangibles		3,979			3,026			3,095			3,130			3,298
Software		6,835			6,293			6,870			6,790			7,056
Data processing		4,510			3,835			3,788			4,701			4,606
Professional fees		2,539			2,653			3,446			4,720			3,788
Advertising and marketing		3,228			4,472			3,359			4,162			3,524
Other expenses		36,651			21,225			17,815			17,266			16,012
Total noninterest expense		150,665			130,536			127,441			126,900			123,984
Income before income tax expense and noncontrolling interest		50,367			59,088			48,113			48,718			51,163
Provision for income tax expense		11,098			8,201			6,672			5,592			8,124
Net income		39,269			50,887			41,441			43,126			43,039
Net income attributable to noncontrolling interest		(432	)		(295	)		(176	)		(177	)		(183	)
Net income attributable to TowneBank	$	38,837		$	50,592		$	41,265		$	42,949		$	42,856
Per common share information
Basic earnings	$	0.52		$	0.67		$	0.55		$	0.57		$	0.57
Diluted earnings	$	0.51		$	0.67		$	0.55		$	0.57		$	0.57
Basic weighted average shares outstanding		75,240,678			75,149,668			75,034,688			74,940,827			74,925,877
Diluted weighted average shares outstanding		75,540,822			75,527,713			75,318,578			75,141,661			75,037,955
Cash dividends declared	$	0.27		$	0.25		$	0.25		$	0.25		$	0.25

TOWNEBANK
Banking Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Six Months Ended						Increase/(Decrease)
	June 30,						March 31,			June 30,						YTD 2025 over 2024
		2025			2024			2025			2025			2024		Amount			Percent
Revenue
Net interest income	$	136,325		$	108,029		$	119,584		$	255,909		$	210,711		$	45,198		21.45	%
Service charges on deposit accounts		3,642			3,353			3,327			6,969			6,431			538		8.37	%
Credit card merchant fees		1,794			1,662			1,697			3,491			3,213			278		8.65	%
Investment commissions, net		3,158			2,580			3,075			6,233			4,923			1,310		26.61	%
Other income		5,750			4,839			6,495			12,244			8,268			3,976		48.09	%
Subtotal		14,344			12,434			14,594			28,937			22,835			6,102		26.72	%
Net gain/(loss) on investment securities		—			—			—			—			74			(74	)	(100.00	)%
Total noninterest income		14,344			12,434			14,594			28,937			22,909			6,028		26.31	%
Total revenue		150,669			120,463			134,178			284,846			233,620			51,226		21.93	%

Provision for credit losses		6,212			(170	)		2,367			8,579			(1,146	)		9,725		(848.60	)%

Expenses
Salaries and employee benefits		52,850			46,640			49,684			102,534			93,113			9,421		10.12	%
Occupancy		7,342			7,194			6,979			14,321			14,254			67		0.47	%
Furniture and equipment		4,081			3,810			3,808			7,889			7,458			431		5.78	%
Amortization of intangible assets		1,969			1,117			981			2,951			2,280			671		29.43	%
Software		4,427			4,422			4,022			8,449			8,476			(27	)	(0.32	)%
Data processing		2,840			2,609			2,609			5,448			5,157			291		5.64	%
Accounting and professional fees		1,934			3,146			2,010			3,944			5,805			(1,861	)	(32.06	)%
Advertising and marketing		1,883			1,610			2,897			4,780			4,618			162		3.51	%
FDIC and other insurance		2,676			1,861			2,590			5,267			5,983			(716	)	(11.97	)%
Acquisition related		17,256			—			420			17,676			147			17,529		N/M
Other expenses		11,276			9,939			11,971			23,246			20,355			2,891		14.20	%
Total expenses		108,534			82,348			87,971			196,505			167,646			28,859		17.21	%
Income before income tax, corporate allocation and noncontrolling interest		35,923			38,285			43,840			79,762			67,120			12,642		18.83	%
Corporate allocation		1,535			1,232			1,396			2,931			2,301			630		27.38	%
Income before income tax provision and noncontrolling interest		37,458			39,517			45,236			82,693			69,421			13,272		19.12	%
Provision for income tax expense		7,814			5,130			4,681			12,495			9,235			3,260		35.30	%
Net income		29,644			34,387			40,555			70,198			60,186			10,012		16.64	%
Noncontrolling interest		(124	)		(58	)		42			(82	)		62			(144	)	(232.26	)%
Net income attributable to TowneBank	$	29,520		$	34,329		$	40,597		$	70,116		$	60,248		$	9,868		16.38	%

Efficiency ratio ^(non-GAAP)		70.73	%		67.43	%		64.83	%		67.95	%		70.81	%		(2.86	)%	(4.04	)%

TOWNEBANK
Mortgage Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Six Months Ended						Increase/(Decrease)
	June 30,						March 31,			June 30,						YTD 2025 over 2024
		2025			2024			2025			2025			2024		Amount			Percent
Revenue
Residential mortgage brokerage income, net	$	14,083		$	13,997		$	10,580		$	24,664		$	24,795		$	(131	)	(0.53	)%
Income (loss) from unconsolidated subsidiary		83			68			42			125			97			28		28.87	%
Net interest and other income		1,095			1,230			1,110			2,205			1,999			206		10.31	%
Total revenue		15,261			15,295			11,732			26,994			26,891			103		0.38	%

Provision for credit losses		198			(7	)		53			251			92			159		172.83	%

Expenses
Salaries and employee benefits		7,315			6,803			7,031			14,346			13,459			887		6.59	%
Occupancy		1,098			1,062			939			2,036			2,124			(88	)	(4.14	)%
Furniture and equipment		151			149			195			346			327			19		5.81	%
Amortization of intangible assets		—			144			—			—			287			(287	)	(100.00	)%
Software		790			876			727			1,517			1,663			(146	)	(8.78	)%
Data processing		198			170			163			360			318			42		13.21	%
Accounting and professional fees		157			142			226			383			376			7		1.86	%
Advertising and marketing		420			448			389			809			830			(21	)	(2.53	)%
FDIC and other insurance		117			94			96			213			196			17		8.67	%
Acquisition related		1,481			—			—			1,481			—			1,481		100.00	%
Other expenses		2,728			2,535			2,461			5,191			4,757			434		9.12	%
Total expenses		14,455			12,423			12,227			26,682			24,337			2,345		9.64	%

Income before income tax, corporate allocation and noncontrolling interest		608			2,879			(548	)		61			2,462			(2,401	)	(97.52	)%
Corporate allocation		(519	)		(490	)		(350	)		(869	)		(838	)		(31	)	3.70	%
Income before income tax provision and noncontrolling interest		89			2,389			(898	)		(808	)		1,624			(2,432	)	(149.75	)%
Provision for income tax expense		(41	)		482			(240	)		(281	)		280			(561	)	(200.36	)%
Net income		130			1,907			(658	)		(527	)		1,344			(1,871	)	(139.21	)%
Noncontrolling interest		(308	)		(411	)		(117	)		(425	)		(526	)		101		19.20	%
Net income attributable to TowneBank	$	(178	)	$	1,496		$	(775	)	$	(952	)	$	818		$	(1,770	)	(216.38	)%

Efficiency ratio excluding gain on equity investment ^(non-GAAP)		94.72	%		80.28	%		104.22	%		98.84	%		89.44	%		9.40	%	10.51	%

TOWNEBANK
Resort Property Management Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Six Months Ended						Increase/(Decrease)
	June 30,						March 31,			June 30,						YTD 2025 over 2024
		2025			2024			2025			2025			2024		Amount			Percent
Revenue
Property management fees, net	$	15,556		$	14,312		$	19,500			35,056			31,085			3,971		12.77	%
Net interest and other income		24			85			13			37			102			(65	)	(63.73	)%
Total revenue		15,580			14,397			19,513			35,093			31,187			3,906		12.52	%

Expenses
Salaries and employee benefits		5,250			5,567			5,448			10,698			11,099			(401	)	(3.61	)%
Occupancy		574			749			614			1,189			1,257			(68	)	(5.41	)%
Furniture and equipment		385			447			405			791			863			(72	)	(8.34	)%
Amortization of intangible assets		637			637			637			1,273			1,170			103		8.80	%
Software		877			923			859			1,736			1,531			205		13.39	%
Data processing		1,339			1,720			944			2,283			2,822			(539	)	(19.10	)%
Accounting and professional fees		236			320			126			362			472			(110	)	(23.31	)%
Advertising and marketing		750			1,333			892			1,641			2,371			(730	)	(30.79	)%
FDIC and other insurance		113			74			67			180			109			71		65.14	%
Acquisition related		—			19			—			—			466			(466	)	(100.00	)%
Other expenses		427			482			2,613			3,040			1,424			1,616		113.48	%
Total expenses		10,588			12,271			12,605			23,193			23,584			(391	)	(1.66	)%

Income before income tax, corporate allocation and noncontrolling interest		4,992			2,126			6,908			11,900			7,603			4,297		56.52	%
Corporate allocation		(316	)		—			(320	)		(636	)		—			(636	)	N/M
Income before income tax provision and noncontrolling interest		4,676			2,126			6,588			11,264			7,603			3,661		48.15	%
Provision for income tax expense		1,227			681			1,629			2,856			2,039			817		40.07	%
Net income		3,449			1,445			4,959			8,408			5,564			2,844		51.11	%
Noncontrolling interest		—			286			(220	)		(220	)		(159	)		(61	)	(38.36	)%
Net income attributable to TowneBank	$	3,449		$	1,731		$	4,739		$	8,188		$	5,405		$	2,783		51.49	%

Efficiency ratio excluding gain on equity investment ^(non-GAAP)		63.87	%		80.81	%		61.33	%		62.46	%		71.87	%		(9.41	)%	(13.09	)%

TOWNEBANK
Insurance Segment Financial Information (unaudited)
(dollars in thousands)


	Three Months Ended									Six Months Ended						Increase/(Decrease)
	June 30,						March 31,			June 30,						YTD 2025 over 2024
		2025			2024			2025			2025			2024		Amount			Percent
Commission and fee income
Property and casualty	$	23,306		$	22,225		$	23,322		$	46,629		$	42,947		$	3,682		8.57	%
Employee benefits		4,596			4,404			4,725			9,320			9,230			90		0.98	%
Specialized benefit services		—			—			—			—			9			(9	)	(100.00	)%
Total commissions and fees		27,902			26,629			28,047			55,949			52,186			3,763		7.21	%

Contingency and bonus revenue		3,034			2,951			3,620			6,654			7,454			(800	)	(10.73	)%
Other income		4			6			4			8			17			(9	)	(52.94	)%
Total revenue		30,940			29,586			31,671			62,611			59,657			2,954		4.95	%

Employee commission expense		5,008			4,771			5,050			10,058			9,283			775		8.35	%
Revenue, net of commission expense		25,932			24,815			26,621			52,553			50,374			2,179		4.33	%

Salaries and employee benefits		12,947			12,339			12,915			25,862			25,055			807		3.22	%
Occupancy		777			712			801			1,578			1,504			74		4.92	%
Furniture and equipment		153			228			213			366			464			(98	)	(21.12	)%
Amortization of intangible assets		1,373			1,400			1,408			2,781			2,807			(26	)	(0.93	)%
Software		741			835			685			1,426			1,486			(60	)	(4.04	)%
Data processing		133			107			119			253			225			28		12.44	%
Accounting and professional fees		212			180			291			503			315			188		59.68	%
Advertising and marketing		175			133			294			471			287			184		64.11	%
FDIC and other insurance		126			104			107			233			203			30		14.78	%
Acquisition related		—			—			—			—			1			(1	)	(100.00	)%
Other expenses		451			904			900			1,348			1,661			(313	)	(18.84	)%
Total operating expenses		17,088			16,942			17,733			34,821			34,008			813		2.39	%
Income before income tax, corporate allocation and noncontrolling interest		8,844			7,873			8,888			17,732			16,366			1,366		8.35	%
Corporate allocation		(700	)		(742	)		(726	)		(1,426	)		(1,463	)		37		2.53	%
Income before income tax provision and noncontrolling interest		8,144			7,131			8,162			16,306			14,903			1,403		9.41	%
Provision for income tax expense		2,098			1,831			2,131			4,229			3,831			398		10.39	%
Net income		6,046			5,300			6,031			12,077			11,072			1,005		9.08	%
Noncontrolling interest		—			—			—			—			—			—		—	%
Net income attributable to TowneBank	$	6,046		$	5,300		$	6,031		$	12,077		$	11,072		$	1,005		9.08	%

Provision for income taxes		2,098			1,831			2,131			4,229			3,831			398		10.39	%
Depreciation, amortization and interest expense		1,489			1,528			1,527			3,016			3,083			(67	)	(2.17	)%
EBITDA ^(non-GAAP)	$	9,633		$	8,659		$	9,689		$	19,322		$	17,986		$	1,336		7.43	%

Efficiency ratio ^(non-GAAP)		60.60	%		62.63	%		61.32	%		60.97	%		61.94	%		(0.97	)%	(1.57	)%

TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands)

	Three Months Ended									Six Months Ended
	June 30,			June 30,			March 31,			June 30,			June 30,
		2025			2024			2025			2025			2024

Return on average assets (GAAP)		0.86	%		1.01	%		1.19	%		1.02	%		0.92	%
Impact of excluding average goodwill and other intangibles and amortization		0.10	%		0.10	%		0.10	%		0.10	%		0.09	%
Return on average tangible assets (non-GAAP)		0.96	%		1.11	%		1.29	%		1.12	%		1.01	%

Return on average equity (GAAP)		7.12	%		8.43	%		9.50	%		8.29	%		7.63	%
Impact of excluding average goodwill and other intangibles and amortization		3.27	%		3.60	%		3.58	%		3.44	%		3.32	%
Return on average tangible equity (non-GAAP)		10.39	%		12.03	%		13.08	%		11.73	%		10.95	%

Return on average common equity (GAAP)		7.14	%		8.49	%		9.57	%		8.34	%		7.69	%
Impact of excluding average goodwill and other intangibles and amortization		3.30	%		3.67	%		3.64	%		3.48	%		3.38	%
Return on average tangible common equity (non-GAAP)		10.44	%		12.16	%		13.21	%		11.82	%		11.07	%

Book value (GAAP)	$	29.58		$	27.62		$	29.19		$	29.58		$	27.62
Impact of excluding average goodwill and other intangibles and amortization		(7.60	)		(6.97	)		(6.83	)		(7.60	)		(6.97	)
Tangible book value (non-GAAP)	$	21.98		$	20.65		$	22.36		$	21.98		$	20.65

Efficiency ratio (GAAP)		72.63	%		70.86	%		67.97	%		70.39	%		72.96	%
Impact of exclusions		(1.92	)%		(1.88	)%		(0.87	)%		(1.41	)%		(1.90	)%
Efficiency ratio (non-GAAP)		70.71	%		68.98	%		67.10	%		68.98	%		71.06	%

Average assets (GAAP)	$	18,056,980		$	16,982,482		$	17,211,862		$	17,636,755		$	16,923,358
Less: average goodwill and intangible assets		567,250			525,122			516,661			542,095			523,899
Average tangible assets (non-GAAP)	$	17,489,730		$	16,457,360		$	16,695,201		$	17,094,660		$	16,399,459

Average equity (GAAP)	$	2,188,322		$	2,045,622		$	2,160,014		$	2,174,246		$	2,042,948
Less: average goodwill and intangible assets		567,250			525,122			516,661			542,095			523,899
Average tangible equity (non-GAAP)	$	1,621,072		$	1,520,500		$	1,643,353		$	1,632,151		$	1,519,049

Average common equity (GAAP)	$	2,180,687		$	2,029,150		$	2,143,806		$	2,162,348		$	2,026,659
Less: average goodwill and intangible assets		567,250			525,122			516,661			542,095			523,899
Average tangible common equity (non-GAAP)	$	1,613,437		$	1,504,028		$	1,627,145		$	1,620,253		$	1,502,760

Net income (GAAP)	$	38,837		$	42,856		$	50,592		$	89,429		$	77,543
Amortization of intangibles, net of tax		3,143			2,605			2,391			5,534			5,170
Tangible net income (non-GAAP)	$	41,980		$	45,461		$	52,983		$	94,963		$	82,713

Total revenue (GAAP)	$	207,442		$	174,970		$	192,044		$	399,486		$	342,072
Net (gain)/loss on investment securities/equity investments		—			—			(2,000	)		(2,000	)		(74	)
Total revenue for efficiency calculation (non-GAAP)	$	207,442		$	174,970		$	190,044		$	397,486		$	341,998

Noninterest expense (GAAP)	$	150,665		$	123,984		$	130,536		$	281,201		$	249,575
Less: amortization of intangibles		3,979			3,298			3,026			7,005			6,544
Noninterest expense net of amortization (non-GAAP)	$	146,686		$	120,686		$	127,510		$	274,196		$	243,031

TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)


Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability	Three Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Net income available to common shareholders (GAAP)	$	38,837		$	50,592		$	41,265		$	42,949		$	42,856

Adjustments
Plus: Acquisition-related expenses, net of tax		15,291			389			250			460			18
Plus: Initial provision for acquired loans, net of tax		4,926			—			—			—			—
Plus: FDIC special assessment, net of tax		—			—			—			—			(310	)
Plus: Resort Property Management deferred tax adjustment for repurchase of noncontrolling interests		2,286			—			—			—			—
Less: Gain on sale of equity investments, net of noncontrolling interest		—			—			(99	)		(16	)		—
Total adjustments, net of taxes		22,503			389			151			444			(292	)
Core operating earnings, excluding certain items affecting comparability (non-GAAP)	$	61,340		$	50,981		$	41,416		$	43,393		$	42,564
Annualized interest impact of Series IV Notes, net of tax		42			42			—			—			—
Core net income for diluted EPS (non-GAAP)	$	61,382		$	51,023		$	41,416		$	43,393		$	42,564

Weighted average diluted shares		75,540,822			75,527,713			75,318,578			75,141,661			75,037,955
Diluted EPS (GAAP)	$	0.51		$	0.67		$	0.55		$	0.57		$	0.57
Diluted EPS, excluding certain items affecting comparability (non-GAAP)	$	0.81		$	0.68		$	0.55		$	0.58		$	0.57
Average assets	$	18,056,980		$	17,211,862		$	17,349,128		$	17,028,141		$	16,982,482
Average tangible equity	$	1,621,072		$	1,643,353		$	1,628,420		$	1,582,830		$	1,520,500
Average tangible common equity	$	1,613,437		$	1,627,145		$	1,612,087		$	1,566,455		$	1,504,028
Return on average assets, excluding certain items affecting comparability (non-GAAP)		1.36	%		1.20	%		0.95	%		1.01	%		1.01	%
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)		15.95	%		13.17	%		10.72	%		11.53	%		11.95	%
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)		16.03	%		13.30	%		10.82	%		11.65	%		12.08	%
Efficiency ratio, excluding certain items affecting comparability (non-GAAP)		61.68	%		66.87	%		70.12	%		70.67	%		68.96	%

TOWNEBANK
Reconciliation of Non-GAAP Financial Measures
(dollars in thousands, except per share data)


Reconciliation of GAAP Earnings to Operating Earnings Excluding Certain Items Affecting Comparability	Six Months Ended
	June 30,			June 30,
		2025			2024
Net income (GAAP)	$	89,429		$	77,543

Adjustments
Plus: Acquisition-related expenses, net of tax		15,680			582
Plus: FDIC special assessment, net of tax		—			711
Plus: Initial provision for acquired loans, net of tax		4,926			—
Plus: Resort Property Management deferred tax adjustment for repurchase of noncontrolling interests		2,286			—
Total adjustments, net of taxes		22,892			1,293
Core operating earnings, excluding certain items affecting comparability (non-GAAP)	$	112,321		$	78,836
Annualized interest impact of Series IV Notes, net of tax		84			—
Core net income for diluted EPS (non-GAAP)	$	112,405		$	78,836
Weighted average diluted shares		75,535,484			75,002,469
Diluted EPS (GAAP)	$	1.19		$	1.03
Diluted EPS, excluding certain items affecting comparability (non-GAAP)	$	1.49		$	1.05
Average assets	$	17,636,755		$	16,923,358
Average tangible equity	$	1,632,151		$	1,519,049
Average tangible common equity	$	1,620,253		$	1,502,760
Return on average assets, excluding certain items affecting comparability (non-GAAP)		1.28	%		0.94	%
Return on average tangible equity, excluding certain items affecting comparability (non-GAAP)		14.56	%		11.12	%
Return on average common tangible equity, excluding certain items affecting comparability (non-GAAP)		14.67	%		11.24	%
Efficiency ratio, excluding certain items affecting comparability (non-GAAP)		64.16	%		70.88	%

The MIL Network –

July 24, 2025

MIL-OSI: SOUTHERN MISSOURI BANCORP REPORTS PRELIMINARY RESULTS FOR FOURTH QUARTER OF FISCAL 2025; DECLARES QUARTERLY DIVIDEND OF $0.25 PER COMMON SHARE; CONFERENCE CALL SCHEDULED FOR THURSDAY, JULY 24, AT 9:30 AM CENTRAL TIME

Source: GlobeNewswire (MIL-OSI)

Poplar Bluff, Missouri, July 23, 2025 (GLOBE NEWSWIRE) — Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the fourth quarter of fiscal 2025 of $15.8 million, an increase of $2.3 million or 16.7%, as compared to the same period of the prior fiscal year. The increase was primarily attributable to higher net interest income and lower provision for income taxes. This was partially offset by higher provision for credit loss (PCL), noninterest expense, and lower noninterest income. Preliminary net income was $1.39 per fully diluted common share for the fourth quarter of fiscal 2025, an increase of $0.20 as compared to the $1.19 per fully diluted common share reported for the same period of the prior fiscal year. For the full fiscal year 2025, preliminary net income of $58.6 million was an increase of $8.4 million as compared to fiscal 2024, while diluted earnings per share for fiscal 2025 were $5.18, an increase of $0.76 as compared to the $4.42 per fully diluted common share for fiscal 2024.

Highlights for the fourth quarter of fiscal 2025:

Earnings per common share (diluted) were $1.39, up $0.20, or 16.8%, as compared to the same quarter a year ago, and remained unchanged from the third quarter of fiscal 2025, the linked quarter.
Annualized return on average assets (ROA) was 1.27%, while annualized return on average common equity (ROE) was 11.8%, as compared to 1.17% and 11.2%, respectively, in the same quarter a year ago, and 1.27% and 12.1%, respectively, in the third quarter of fiscal 2025, the linked quarter.
Net interest margin for the quarter was 3.46%, up from the 3.25% reported for the year ago period, and up from 3.39% reported for the third quarter of fiscal 2025, the linked quarter. Net interest income increased $5.2 million, or 14.9% as compared to the same quarter a year ago, and increased $854,000, or 2.2% as compared to the third quarter of fiscal 2025, the linked quarter.
Noninterest income was down 6.3% for the quarter, as compared to the year ago period, but up 9.2% as compared to the third quarter of fiscal 2025, the linked quarter. The decrease compared to the year ago period was primarily due to tax credit benefits recorded in the prior fiscal year as noninterest income, but recognized in the current period as a direct reduction from the provision for income taxes under the proportional amortization method of ASU 2023-02. In addition, the Company realized a modest negative adjustment to the value of mortgage servicing rights. The increase in non-interest income compared to the linked quarter was largely due to additional card network fees based on volume incentives totaling $537,000.
Gross loan balances increased by $76.2 million during the fourth quarter, and increased by $249.9 million, or 6.5% during all of fiscal 2025.
PCL was $2.5 million during the fourth quarter of fiscal 2025, a $1.6 million increase from both the year ago period and the third quarter of fiscal 2025, the linked quarter. The increase was primarily driven by higher net charge-offs, largely stemming from a previously identified non-performing special-purpose commercial real estate credit relationship disclosed in the prior quarter and to support loan growth. See “Balance Sheet Summary” below for more detailed information regarding this credit relationship.
Deposit balances increased by $19.9 million during the fourth quarter, and increased by $338.3 million, or 8.6% during all of fiscal 2025.
Cash equivalents and time deposits balances decreased by $34.0 million during the fourth quarter, and increased $131.7 million during all of fiscal 2025, which was driven by deposit growth and earnings retention after cash dividends paid outpacing gross loan and other asset growth.
Tangible book value per share was $41.87, having increased by $5.19, or 14.1%, as compared to June 30, 2024.

Dividend Declared:

The Board of Directors, on July 22, 2025, declared a quarterly cash dividend on common stock of $0.25 per share, payable August 29, 2025, to stockholders of record at the close of business on August 15, 2025, marking the 125th consecutive quarterly dividend since the inception of the Company. The dividend represents an increase of $0.02 per share, or 8.7%, as compared to the previous quarterly dividend payment. The Board of Directors and management believe the payment of a quarterly cash dividend enhances stockholder value and demonstrates our commitment to and confidence in our future prospects.

Conference Call:

The Company will host a conference call to review the information provided in this press release on Thursday, July 24, 2025, at 9:30 a.m., central time. The call will be available live to interested parties by calling 1-833-470-1428 in the United States and from all other locations. Participants should use participant access code 617584. Telephone playback will be available beginning one hour following the conclusion of the call through July 29, 2025. The playback may be accessed by dialing 1-866-813-9403, and using the conference passcode 612450.

Balance Sheet Summary:

The Company experienced balance sheet growth in fiscal 2025, with total assets of $5.0 billion at June 30, 2025, reflecting an increase of $415.3 million, or 9.0%, as compared to June 30, 2024. Growth primarily reflected an increase in net loans receivable, cash equivalents, and available-for-sale (AFS) securities.

Cash equivalents and time deposits were $193.1 million at June 30, 2025, an increase of $131.7 million, or 214.5%, as compared to June 30, 2024. Compared to March 31, 2025, the linked quarter, cash equivalents decreased $34.0 million, or 15.0%, primarily utilized to fund loan growth, which was partially offset by deposit growth and earnings retention after cash dividends paid. AFS securities were $460.8 million at June 30, 2025, up $32.9 million, or 7.7%, as compared to June 30, 2024.

Loans, net of the allowance for credit losses (ACL), were $4.0 billion at June 30, 2025, an increase of $250.8 million, or 6.6%, as compared to June 30, 2024. Gross loans increased by $249.9 million, while the ACL attributable to outstanding loan balances decreased $887,000, or 1.7%, as compared to June 30, 2024. The increase in loan balances was attributable to growth in residential real estate loans, commercial and industrial loans, drawn construction loan balances, multi-family real estate loans, and agricultural production draws. This was partially offset by payoffs and paydowns in non-owner occupied commercial real estate and consumer loans. The table below illustrates changes in loan balances by type over recent periods:


Summary Loan Data as of:	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,
(dollars in thousands)	2025		2025		2024		2024		2024

1-4 residential real estate	$	991,553	$	978,908	$	967,196	$	942,916	$	925,397
Non-owner occupied commercial real estate		888,317		897,125		882,484		903,678		899,770
Owner occupied commercial real estate		442,984		440,282		435,392		438,030		427,476
Multi-family real estate		422,758		405,445		376,081		371,177		384,564
Construction and land development		332,405		323,499		393,388		351,481		290,541
Agriculture real estate		244,983		247,027		239,912		239,787		232,520
Total loans secured by real estate		3,323,000		3,292,286		3,294,453		3,247,069		3,160,268

Commercial and industrial		510,259		488,116		484,799		457,018		450,147
Agriculture production		206,128		186,058		188,284		200,215		175,968
Consumer		55,387		54,022		56,017		58,735		59,671
All other loans		5,102		3,216		3,628		3,699		3,981
Total loans		4,099,876		4,023,698		4,027,181		3,966,736		3,850,035

Deferred loan fees, net		(178)		(189)		(202)		(218)		(232)
Gross loans		4,099,698		4,023,509		4,026,979		3,966,518		3,849,803
Allowance for credit losses		(51,629)		(54,940)		(54,740)		(54,437)		(52,516)
Net loans	$	4,048,069	$	3,968,569	$	3,972,239	$	3,912,081	$	3,797,287

Loans anticipated to fund in the next 90 days totaled $224.1 million at June 30, 2025, as compared to $163.3 million at March 31, 2025, and $157.1 million at June 30, 2024.

The Bank’s concentration in non-owner occupied commercial real estate loans is estimated at 301.9% of Tier 1 capital and ACL at June 30, 2025, as compared to 317.5% as of June 30, 2024, with these loans representing 40.1% of total loans at June 30, 2025. Multi-family residential real estate, hospitality (hotels/restaurants), care facilities, strip centers, retail stand-alone, and storage units are the most common collateral types within the non-owner occupied commercial real estate loan portfolio. The multi-family residential real estate loan portfolio commonly includes loans collateralized by properties currently in the low-income housing tax credit (LIHTC) program or that have exited the program. The hospitality and retail stand-alone segments include primarily franchised businesses; care facilities consisting mainly of skilled nursing and assisted living centers; and strip centers, which can be defined as non-mall shopping centers with a variety of tenants. Non-owner occupied office property types included 33 loans totaling $24.3 million, or 0.59% of total loans at June 30, 2025, none of which were adversely classified as of June 30, 2025, and are generally comprised of smaller spaces with diverse tenants. The Company continues to monitor its commercial real estate concentration and the individual segments closely.

Nonperforming loans (NPLs) were $23.0 million, or 0.56% of gross loans, at June 30, 2025, as compared to $6.7 million, or 0.17% of gross loans, at June 30, 2024. Nonperforming assets (NPAs) were $23.7 million, or 0.47% of total assets, at June 30, 2025, as compared to $10.6 million, or 0.23% of total assets, at June 30, 2024. The rise in NPAs reflects an increase in NPLs, which was partially offset by a decrease in other real estate owned. Compared to March 31, 2025, the linked quarter, NPAs declined $104,000. The year-over-year increase in NPLs was primarily driven by several commercial relationships added during the third and fourth quarters of fiscal 2025, along with the addition of other smaller loans throughout the year, partially offset by net charge-offs. In the fourth quarter, a $5.7 million construction loan related to the development of a senior living facility was placed on nonaccrual status. As previously disclosed in the third quarter, three commercial loans with common guarantors, which are primarily secured by two non-owner-occupied, special-purpose commercial properties located in different states, were also added to NPLs. These properties, which were previously leased to a single tenant that has since become insolvent, are now vacant. Some guarantors are shared across these three loans. The total balance of these three loans at fiscal year end 2025 was $6.2 million, after recognition of $3.8 million charge-offs in the current quarter that were previously reserved for in the linked quarter.

The ACL at June 30, 2025, totaled $51.6 million, representing 1.26% of gross loans and 224% of nonperforming loans, as compared to an ACL of $52.5 million, representing 1.36% of gross loans and 786% of nonperforming loans, at June 30, 2024. The Company has estimated its expected credit losses as of June 30, 2025, under ASC 326-20, and management believes the ACL as of that date was adequate based on that estimate. There remains, however, significant uncertainty as borrowers adjust to relatively high market interest rates, although the Federal Reserve has reduced short-term rates somewhat during this fiscal year. The decrease in the ACL was primarily attributable to net charge-offs, which reduced the required reserves for individually evaluated loans, as well as a decline in certain qualitative adjustments relevant to assessing expected credit losses. This decrease was partially offset by higher required reserves for pooled loans, reflecting management’s updated view of a deteriorating economic outlook and an increase in modeled loss drivers compared to the prior assessment as of June 30, 2024. Additional provisions were also recorded to support loan growth and overdraft exposures during fiscal year 2025. As a percentage of average loans outstanding, the Company recorded net charge offs of 0.53% (annualized) during the current quarter, as compared to 0.06% for the same quarter of the prior fiscal year. In the three-month period ended June 30, 2025, net charge offs were $5.3 million, with the increase from prior periods primarily attributable to the $3.8 million special-purpose CRE charge off noted above, and a $742,000 commercial and industrial charge off related to a commercial contractor. For fiscal year 2025, net charge offs as a percentage of average loans were 0.17%, as compared to 0.05% for fiscal year 2024.

Total liabilities were $4.5 billion at June 30, 2025, an increase of $359.3 million, or 8.7%, as compared to June 30, 2024. Growth primarily reflected increases in total deposits, other liabilities, accrued interest and income taxes payable, and securities sold under agreement to repurchase.

Deposits were $4.3 billion at June 30, 2025, an increase of $338.3 million, or 8.6%, as compared to June 30, 2024. The deposit portfolio saw increases in certificates of deposit and savings accounts, as customers remained willing to move balances into special rate time deposits and high yield savings accounts in the higher rate environment. Public unit balances totaled $550.8 million at June 30, 2025, a decrease of $43.8 million compared to June 30, 2024, mostly due to the Company losing the bid to retain a larger local public unit depositor early in the fiscal year. Brokered deposits totaled $233.6 million at June 30, 2025, an increase of $61.9 million as compared to June 30, 2024. The average loan-to-deposit ratio for the fourth quarter of fiscal 2025 was 94.5%, as compared to 96.3% for the same period of the prior fiscal year. The period end loan-to-deposit ratios were 95.8% and 97.6% as of June 30, 2024, and 2025, respectively. The table below illustrates changes in deposit balances by type over recent periods:


Summary Deposit Data as of:	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,
(dollars in thousands)	2025		2025		2024		2024		2024

Non-interest bearing deposits	$	508,110	$	513,418	$	514,199	$	503,209	$	514,107
NOW accounts		1,132,298		1,167,296		1,211,402		1,128,917		1,239,663
MMDAs – non-brokered		329,837		345,810		347,271		320,252		334,774
Brokered MMDAs		1,414		2,013		3,018		12,058		2,025
Savings accounts		661,115		626,175		573,291		556,030		517,084
Total nonmaturity deposits		2,632,774		2,654,712		2,649,181		2,520,466		2,607,653

Certificates of deposit – non-brokered		1,414,945		1,373,109		1,310,421		1,258,583		1,163,650
Brokered certificates of deposit		233,649		233,561		251,025		261,093		171,756
Total certificates of deposit		1,648,594		1,606,670		1,561,446		1,519,676		1,335,406

Total deposits	$	4,281,368	$	4,261,382	$	4,210,627	$	4,040,142	$	3,943,059

Public unit nonmaturity accounts	$	435,632	$	472,010	$	482,406	$	447,638	$	541,445
Public unit certificates of deposit		115,204		103,741		83,506		62,882		53,144
Total public unit deposits	$	550,836	$	575,751	$	565,912	$	510,520	$	594,589

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

The Company’s stockholders’ equity was $544.7 million at June 30, 2025, an increase of $55.9 million, or 11.4%, as compared to June 30, 2024. The increase was attributable primarily to earnings retained after cash dividends paid, in combination with a $6.1 million reduction in accumulated other comprehensive losses (AOCL) as the market value of the Company’s investments appreciated due to the decrease in market interest rates. The AOCL totaled $11.4 million at June 30, 2025, as compared to $17.5 million at June 30, 2024. The Company does not hold any securities classified as held-to-maturity.

Quarterly Income Statement Summary:

The Company’s net interest income for the three-month period ended June 30, 2025, was $40.3 million, an increase of $5.2 million, or 14.9%, as compared to the same period of the prior fiscal year. The increase was attributable to a 7.9% increase in the average balance of interest-earning assets in the current three-month period compared to the same period a year ago, and an increase of 21 basis points in the net interest margin, from 3.25% to 3.46%. The primary driver of the net interest margin expansion, compared to the year ago period, was the cost of interest-bearing liabilities decreasing 20 basis points, while the yield on interest-earning assets increased seven basis points. The overall increase in spread of 27 basis points was partially offset by a lower level of average interest-earning assets to average interest-bearing liabilities totaling 120.6% at June 30, 2025, down 1.1 percentage points compared to the year ago period, due to stronger deposit growth.

Loan discount accretion and deposit premium amortization related to the November 2018 acquisition of First Commercial Bank, the May 2020 acquisition of Central Federal Savings & Loan Association, the February 2022 merger of FortuneBank, and the January 2023 acquisition of Citizens Bank & Trust resulted in $612,000 in net interest income for the three-month period ended June 30, 2025, as compared to $1.1 million in net interest income for the same period a year ago. Combined, this component of net interest income contributed five basis points to net interest margin in the three-month period ended June 30, 2025, as compared to a ten basis point contribution for the same period of the prior fiscal year, and as compared to a 13-basis point contribution in the linked quarter, ended March 31, 2025, when net interest margin was 3.39%.

The Company recorded a PCL of $2.5 million in the three-month period ended June 30, 2025, as compared to a PCL of $900,000 in the same period of the prior fiscal year. The current period PCL was the result of a $2.0 million provision attributable to the ACL for loan balances outstanding and a $475,000 provision attributable to the allowance for off-balance sheet credit exposures. The increase was primarily attributable to providing for net charge-offs and to support loan growth, in addition to an increase in unfunded balances and an increase in the expected funding rate on available credit.

The Company’s noninterest income for the three-month period ended June 30, 2025, was $7.3 million, a decrease of $487,000, or 6.3%, as compared to the same period of the prior fiscal year. The decrease was attributable to lower other noninterest income and loan servicing fees. The decrease in other noninterest income was associated with the change in accounting for realization of tax credits, as the Company has adopted the proportional amortization method under ASU 2023-02, which results in a direct reduction to the provision for income taxes in fiscal 2025. The tax credit benefit recognized in other noninterest income in the three-month period ended June 2024 was $675,000. Loan servicing fees were negatively impacted by the recognition of a change in the fair value of mortgage servicing rights, which in the fourth quarter of fiscal 2025 resulted in a negative adjustment of $108,000, as compared to a benefit of $131,000 in the same period a year ago, due to changes in market rates and prepayment assumptions. These decreases as compared to the prior year period were partially offset by increases in other loan fees attributable to increased loan originations and higher deposit account charges and related fees primarily attributable to an increase in non-sufficient fund activity and an increase in maintenance and activity fees collected.

Noninterest expense for the three-month period ended June 30, 2025, was $26.0 million, an increase of $974,000, or 3.9%, as compared to the same period of the prior fiscal year. The increase as compared to the year-ago period was primarily attributable to increases in legal and professional fees, data processing expense, and other noninterest expense. The Company experienced elevated legal and professional fees associated with consulting costs to negotiate a new contract with a large vendor totaling $425,000. Data processing expense increased due to an increase in third party ancillary software expenses and one-time reclassification of data processing expenses to other categories in the year-ago period. The increase in other noninterest expense was primarily due to card fraud losses and deposit product expenses. These increases as compared to the prior year period were partially offset by decreases in intangible amortization expense, as the core deposit intangible recognized in an older merger was fully amortized in the second quarter of fiscal 2025, and by reduced telecommunication expenses.

The efficiency ratio for the three-month period ended June 30, 2025, was 54.6%, as compared to 58.3% in the same period of the prior fiscal year. The improvement was attributable to net interest income growing faster than operating expenses.

The income tax provision was $3.4 million for the three-month period ended June 30, 2025, and for the same period of the prior fiscal year. The effective tax rate for the fourth quarter of fiscal year 2025 was 17.5%, as compared to 20.2% in the same period of the prior fiscal year. The decrease in the effective tax rate was primarily attributable to a $701,000 income tax benefit from the recognition of tax credits utilizing the proportional amortization method under ASC 2023-02. In the same period of the prior fiscal year, similar benefits were recognized through noninterest income.

Forward-Looking Information:

Except for the historical information contained herein, the matters discussed in this press release may be deemed to be forward-looking statements that are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from the forward-looking statements, including: potential adverse impacts to the economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, expected cost savings, synergies and other benefits from our merger and acquisition activities might not be realized to the extent expected, within the anticipated time frames, or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention and labor shortages, might be greater than expected and goodwill impairment charges might be incurred; the strength of the United States economy in general and the strength of local economies in which we conduct operations; fluctuations in interest rates and the possibility of a recession; monetary and fiscal policies of the FRB and the U.S. Government and other governmental initiatives affecting the financial services industry; potential imposition of new or increased tariffs or changes to existing trade policies that could affect economic activity or specific industry sectors; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors’ products and services; fluctuations in real estate values in both residential and commercial real estate markets, as well as agricultural business conditions; demand for loans and deposits; legislative or regulatory changes that adversely affect our business; changes in accounting principles, policies, or guidelines; results of regulatory examinations, including the possibility that a regulator may, among other things, require an increase in our reserve for credit losses or write-down of assets; the impact of technological changes; and our success at managing the risks involved in the foregoing. Any forward-looking statements are based upon management’s beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed might not occur, and you should not put undue reliance on any forward-looking statements.

Southern Missouri Bancorp, Inc.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION


Summary Balance Sheet Data as of:	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,
(dollars in thousands, except per share data)	2025			2025			2024			2024			2024

Cash equivalents and time deposits	$	193,105		$	227,136		$	146,078		$	75,591		$	61,395
Available for sale (AFS) securities		460,844			462,930			468,060			420,209			427,903
FHLB/FRB membership stock		18,500			18,269			18,099			18,064			17,802
Loans held for sale		431			—			—			—			—
Loans receivable, gross		4,099,698			4,023,509			4,026,979			3,966,518			3,849,803
Allowance for credit losses		51,629			54,940			54,740			54,437			52,516
Loans receivable, net		4,048,069			3,968,569			3,972,239			3,912,081			3,797,287
Bank-owned life insurance		75,691			75,156			74,643			74,119			73,601
Intangible assets		73,721			74,677			75,399			76,340			77,232
Premises and equipment		95,982			95,987			96,418			96,087			95,952
Other assets		53,264			53,772			56,738			56,709			53,144
Total assets	$	5,019,607		$	4,976,496		$	4,907,674		$	4,729,200		$	4,604,316

Interest-bearing deposits	$	3,773,258		$	3,747,964		$	3,696,428		$	3,536,933		$	3,428,952
Noninterest-bearing deposits		508,110			513,418			514,199			503,209			514,107
Securities sold under agreements to repurchase		15,000			15,000			15,000			15,000			9,398
FHLB advances		104,072			104,072			107,070			107,069			102,050
Other liabilities		51,267			44,057			39,424			38,191			37,905
Subordinated debt		23,208			23,195			23,182			23,169			23,156
Total liabilities		4,474,915			4,447,706			4,395,303			4,223,571			4,115,568

Total stockholders’ equity		544,692			528,790			512,371			505,629			488,748

Total liabilities and stockholders’ equity	$	5,019,607		$	4,976,496		$	4,907,674		$	4,729,200		$	4,604,316

Equity to assets ratio		10.85	%		10.63	%		10.44	%		10.69	%		10.61	%

Common shares outstanding		11,299,467			11,299,962			11,277,167			11,277,167			11,277,737
Less: Restricted common shares not vested		50,163			50,658			46,653			56,553			57,956
Common shares for book value determination		11,249,304			11,249,304			11,230,514			11,220,614			11,219,781

Book value per common share	$	48.42		$	47.01		$	45.62		$	45.06		$	43.56
Less: Intangible assets per common share		6.55			6.64			6.71			6.80			6.88
Tangible book value per common share ⁽¹⁾		41.87			40.37			38.91			38.26			36.68
Closing market price		54.78			52.02			57.37			56.49			45.01

(1) Non-GAAP financial measure.


Nonperforming asset data as of:	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,
(dollars in thousands)	2025			2025			2024			2024			2024

Nonaccrual loans	$	23,040		$	21,970		$	8,309		$	8,206		$	6,680
Accruing loans 90 days or more past due		—			—			—			—			—
Total nonperforming loans		23,040			21,970			8,309			8,206			6,680
Other real estate owned (OREO)		625			1,775			2,423			3,842			3,865
Personal property repossessed		32			56			37			21			23
Total nonperforming assets	$	23,697		$	23,801		$	10,769		$	12,069		$	10,568

Total nonperforming assets to total assets		0.47	%		0.48	%		0.22	%		0.26	%		0.23	%
Total nonperforming loans to gross loans		0.56	%		0.55	%		0.21	%		0.21	%		0.17	%
Allowance for credit losses to nonperforming loans		224.08	%		250.07	%		658.80	%		663.38	%		786.17	%
Allowance for credit losses to gross loans		1.26	%		1.37	%		1.36	%		1.37	%		1.36	%

Performing modifications to borrowers experiencing financial difficulty	$	26,642		$	23,304		$	24,083		$	24,340		$	24,602


	For the three-month period ended
Quarterly Summary Income Statement Data:	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,
(dollars in thousands, except per share data)	2025		2025		2024		2024		2024

Interest income:
Cash equivalents	$	1,698	$	1,585	$	784	$	78	$	541
AFS securities and membership stock		5,586		5,684		5,558		5,547		5,677
Loans receivable		63,354		62,656		63,082		61,753		58,449
Total interest income		70,638		69,925		69,424		67,378		64,667
Interest expense:
Deposits		28,644		28,795		29,538		28,796		27,999
Securities sold under agreements to repurchase		191		189		226		160		125
FHLB advances		1,080		1,076		1,099		1,326		1,015
Subordinated debt		390		386		418		435		433
Total interest expense		30,305		30,446		31,281		30,717		29,572
Net interest income		40,333		39,479		38,143		36,661		35,095
Provision for credit losses		2,500		932		932		2,159		900
Noninterest income:
Deposit account charges and related fees		2,156		2,048		2,237		2,184		1,978
Bank card interchange income		1,839		1,341		1,301		1,499		1,770
Loan late charges		—		—		—		—		170
Loan servicing fees		167		224		232		286		494
Other loan fees		917		843		944		1,063		617
Net realized gains on sale of loans		143		114		133		361		97
Net realized gains (losses) on sale of AFS securities		—		48		—		—		—
Earnings on bank owned life insurance		533		512		522		517		498
Insurance brokerage commissions		368		340		300		287		331
Wealth management fees		825		902		843		730		838
Other noninterest income		332		294		353		247		974
Total noninterest income		7,280		6,666		6,865		7,174		7,767
Noninterest expense:
Compensation and benefits		13,852		13,771		13,737		14,397		13,894
Occupancy and equipment, net		3,745		3,869		3,585		3,689		3,790
Data processing expense		2,573		2,359		2,224		2,171		1,929
Telecommunications expense		312		330		354		428		468
Deposit insurance premiums		601		674		588		472		638
Legal and professional fees		1,165		603		619		1,208		516
Advertising		551		530		442		546		640
Postage and office supplies		336		350		283		306		308
Intangible amortization		857		889		897		897		1,018
Foreclosed property expenses, net		(18)		37		73		12		52
Other noninterest expense		2,002		1,979		2,074		1,715		1,749
Total noninterest expense		25,976		25,391		24,876		25,841		25,002
Net income before income taxes		19,137		19,822		19,200		15,835		16,960
Income taxes		3,351		4,139		4,547		3,377		3,430
Net income		15,786		15,683		14,653		12,458		13,530
Less: Distributed and undistributed earnings allocated
to participating securities		71		71		61		62		69
Net income available to common shareholders	$	15,715	$	15,612	$	14,592	$	12,396	$	13,461

Basic earnings per common share	$	1.40	$	1.39	$	1.30	$	1.10	$	1.19
Diluted earnings per common share		1.39		1.39		1.30		1.10		1.19
Dividends per common share		0.23		0.23		0.23		0.23		0.21
Average common shares outstanding:
Basic		11,250,000		11,238,000		11,231,000		11,221,000		11,276,000
Diluted		11,270,000		11,262,000		11,260,000		11,240,000		11,283,000


	For the three-month period ended
Quarterly Average Balance Sheet Data:	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,
(dollars in thousands)	2025			2025			2024			2024			2024

Interest-bearing cash equivalents	$	151,380		$	143,206		$	64,976		$	5,547		$	39,432
AFS securities and membership stock		498,491			508,642			479,633			460,187			476,198
Loans receivable, gross		4,018,769			4,003,552			3,989,643			3,889,740			3,809,209
Total interest-earning assets		4,668,640			4,655,400			4,534,252			4,355,474			4,324,839
Other assets		299,217			290,739			291,217			283,056			285,956
Total assets	$	4,967,857		$	4,946,139		$	4,825,469		$	4,638,530		$	4,610,795

Interest-bearing deposits	$	3,727,836		$	3,737,849		$	3,615,767		$	3,416,752		$	3,417,360
Securities sold under agreements to repurchase		15,000			15,000			15,000			12,321			9,398
FHLB advances		104,053			106,187			107,054			123,723			102,757
Subordinated debt		23,201			23,189			23,175			23,162			23,149
Total interest-bearing liabilities		3,870,090			3,882,225			3,760,996			3,575,958			3,552,664
Noninterest-bearing deposits		524,860			513,157			524,878			531,946			539,637
Other noninterest-bearing liabilities		37,014			31,282			31,442			33,737			35,198
Total liabilities		4,431,964			4,426,664			4,317,316			4,141,641			4,127,499

Total stockholders’ equity		535,893			519,475			508,153			496,889			483,296

Total liabilities and stockholders’ equity	$	4,967,857		$	4,946,139		$	4,825,469		$	4,638,530		$	4,610,795

Return on average assets		1.27	%		1.27	%		1.21	%		1.07	%		1.17	%
Return on average common stockholders’ equity		11.8	%		12.1	%		11.5	%		10.0	%		11.2	%

Net interest margin		3.46	%		3.39	%		3.36	%		3.37	%		3.25	%
Net interest spread		2.92	%		2.87	%		2.79	%		2.75	%		2.65	%

Efficiency ratio		54.6	%		55.1	%		55.3	%		59.0	%		58.3	%

The MIL Network –

July 24, 2025

MIL-OSI: SOUTHERN MISSOURI BANCORP REPORTS PRELIMINARY RESULTS FOR FOURTH QUARTER OF FISCAL 2025; DECLARES QUARTERLY DIVIDEND OF $0.25 PER COMMON SHARE; CONFERENCE CALL SCHEDULED FOR THURSDAY, JULY 24, AT 9:30 AM CENTRAL TIME

Source: GlobeNewswire (MIL-OSI)

Poplar Bluff, Missouri, July 23, 2025 (GLOBE NEWSWIRE) — Southern Missouri Bancorp, Inc. (“Company”) (NASDAQ: SMBC), the parent corporation of Southern Bank (“Bank”), today announced preliminary net income for the fourth quarter of fiscal 2025 of $15.8 million, an increase of $2.3 million or 16.7%, as compared to the same period of the prior fiscal year. The increase was primarily attributable to higher net interest income and lower provision for income taxes. This was partially offset by higher provision for credit loss (PCL), noninterest expense, and lower noninterest income. Preliminary net income was $1.39 per fully diluted common share for the fourth quarter of fiscal 2025, an increase of $0.20 as compared to the $1.19 per fully diluted common share reported for the same period of the prior fiscal year. For the full fiscal year 2025, preliminary net income of $58.6 million was an increase of $8.4 million as compared to fiscal 2024, while diluted earnings per share for fiscal 2025 were $5.18, an increase of $0.76 as compared to the $4.42 per fully diluted common share for fiscal 2024.

Highlights for the fourth quarter of fiscal 2025:

Earnings per common share (diluted) were $1.39, up $0.20, or 16.8%, as compared to the same quarter a year ago, and remained unchanged from the third quarter of fiscal 2025, the linked quarter.
Annualized return on average assets (ROA) was 1.27%, while annualized return on average common equity (ROE) was 11.8%, as compared to 1.17% and 11.2%, respectively, in the same quarter a year ago, and 1.27% and 12.1%, respectively, in the third quarter of fiscal 2025, the linked quarter.
Net interest margin for the quarter was 3.46%, up from the 3.25% reported for the year ago period, and up from 3.39% reported for the third quarter of fiscal 2025, the linked quarter. Net interest income increased $5.2 million, or 14.9% as compared to the same quarter a year ago, and increased $854,000, or 2.2% as compared to the third quarter of fiscal 2025, the linked quarter.
Noninterest income was down 6.3% for the quarter, as compared to the year ago period, but up 9.2% as compared to the third quarter of fiscal 2025, the linked quarter. The decrease compared to the year ago period was primarily due to tax credit benefits recorded in the prior fiscal year as noninterest income, but recognized in the current period as a direct reduction from the provision for income taxes under the proportional amortization method of ASU 2023-02. In addition, the Company realized a modest negative adjustment to the value of mortgage servicing rights. The increase in non-interest income compared to the linked quarter was largely due to additional card network fees based on volume incentives totaling $537,000.
Gross loan balances increased by $76.2 million during the fourth quarter, and increased by $249.9 million, or 6.5% during all of fiscal 2025.
PCL was $2.5 million during the fourth quarter of fiscal 2025, a $1.6 million increase from both the year ago period and the third quarter of fiscal 2025, the linked quarter. The increase was primarily driven by higher net charge-offs, largely stemming from a previously identified non-performing special-purpose commercial real estate credit relationship disclosed in the prior quarter and to support loan growth. See “Balance Sheet Summary” below for more detailed information regarding this credit relationship.
Deposit balances increased by $19.9 million during the fourth quarter, and increased by $338.3 million, or 8.6% during all of fiscal 2025.
Cash equivalents and time deposits balances decreased by $34.0 million during the fourth quarter, and increased $131.7 million during all of fiscal 2025, which was driven by deposit growth and earnings retention after cash dividends paid outpacing gross loan and other asset growth.
Tangible book value per share was $41.87, having increased by $5.19, or 14.1%, as compared to June 30, 2024.

Dividend Declared:

The Board of Directors, on July 22, 2025, declared a quarterly cash dividend on common stock of $0.25 per share, payable August 29, 2025, to stockholders of record at the close of business on August 15, 2025, marking the 125th consecutive quarterly dividend since the inception of the Company. The dividend represents an increase of $0.02 per share, or 8.7%, as compared to the previous quarterly dividend payment. The Board of Directors and management believe the payment of a quarterly cash dividend enhances stockholder value and demonstrates our commitment to and confidence in our future prospects.

Conference Call:

The Company will host a conference call to review the information provided in this press release on Thursday, July 24, 2025, at 9:30 a.m., central time. The call will be available live to interested parties by calling 1-833-470-1428 in the United States and from all other locations. Participants should use participant access code 617584. Telephone playback will be available beginning one hour following the conclusion of the call through July 29, 2025. The playback may be accessed by dialing 1-866-813-9403, and using the conference passcode 612450.

Balance Sheet Summary:

The Company experienced balance sheet growth in fiscal 2025, with total assets of $5.0 billion at June 30, 2025, reflecting an increase of $415.3 million, or 9.0%, as compared to June 30, 2024. Growth primarily reflected an increase in net loans receivable, cash equivalents, and available-for-sale (AFS) securities.

Cash equivalents and time deposits were $193.1 million at June 30, 2025, an increase of $131.7 million, or 214.5%, as compared to June 30, 2024. Compared to March 31, 2025, the linked quarter, cash equivalents decreased $34.0 million, or 15.0%, primarily utilized to fund loan growth, which was partially offset by deposit growth and earnings retention after cash dividends paid. AFS securities were $460.8 million at June 30, 2025, up $32.9 million, or 7.7%, as compared to June 30, 2024.

Loans, net of the allowance for credit losses (ACL), were $4.0 billion at June 30, 2025, an increase of $250.8 million, or 6.6%, as compared to June 30, 2024. Gross loans increased by $249.9 million, while the ACL attributable to outstanding loan balances decreased $887,000, or 1.7%, as compared to June 30, 2024. The increase in loan balances was attributable to growth in residential real estate loans, commercial and industrial loans, drawn construction loan balances, multi-family real estate loans, and agricultural production draws. This was partially offset by payoffs and paydowns in non-owner occupied commercial real estate and consumer loans. The table below illustrates changes in loan balances by type over recent periods:


Summary Loan Data as of:	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,
(dollars in thousands)	2025		2025		2024		2024		2024

1-4 residential real estate	$	991,553	$	978,908	$	967,196	$	942,916	$	925,397
Non-owner occupied commercial real estate		888,317		897,125		882,484		903,678		899,770
Owner occupied commercial real estate		442,984		440,282		435,392		438,030		427,476
Multi-family real estate		422,758		405,445		376,081		371,177		384,564
Construction and land development		332,405		323,499		393,388		351,481		290,541
Agriculture real estate		244,983		247,027		239,912		239,787		232,520
Total loans secured by real estate		3,323,000		3,292,286		3,294,453		3,247,069		3,160,268

Commercial and industrial		510,259		488,116		484,799		457,018		450,147
Agriculture production		206,128		186,058		188,284		200,215		175,968
Consumer		55,387		54,022		56,017		58,735		59,671
All other loans		5,102		3,216		3,628		3,699		3,981
Total loans		4,099,876		4,023,698		4,027,181		3,966,736		3,850,035

Deferred loan fees, net		(178)		(189)		(202)		(218)		(232)
Gross loans		4,099,698		4,023,509		4,026,979		3,966,518		3,849,803
Allowance for credit losses		(51,629)		(54,940)		(54,740)		(54,437)		(52,516)
Net loans	$	4,048,069	$	3,968,569	$	3,972,239	$	3,912,081	$	3,797,287

Loans anticipated to fund in the next 90 days totaled $224.1 million at June 30, 2025, as compared to $163.3 million at March 31, 2025, and $157.1 million at June 30, 2024.

The Bank’s concentration in non-owner occupied commercial real estate loans is estimated at 301.9% of Tier 1 capital and ACL at June 30, 2025, as compared to 317.5% as of June 30, 2024, with these loans representing 40.1% of total loans at June 30, 2025. Multi-family residential real estate, hospitality (hotels/restaurants), care facilities, strip centers, retail stand-alone, and storage units are the most common collateral types within the non-owner occupied commercial real estate loan portfolio. The multi-family residential real estate loan portfolio commonly includes loans collateralized by properties currently in the low-income housing tax credit (LIHTC) program or that have exited the program. The hospitality and retail stand-alone segments include primarily franchised businesses; care facilities consisting mainly of skilled nursing and assisted living centers; and strip centers, which can be defined as non-mall shopping centers with a variety of tenants. Non-owner occupied office property types included 33 loans totaling $24.3 million, or 0.59% of total loans at June 30, 2025, none of which were adversely classified as of June 30, 2025, and are generally comprised of smaller spaces with diverse tenants. The Company continues to monitor its commercial real estate concentration and the individual segments closely.

Nonperforming loans (NPLs) were $23.0 million, or 0.56% of gross loans, at June 30, 2025, as compared to $6.7 million, or 0.17% of gross loans, at June 30, 2024. Nonperforming assets (NPAs) were $23.7 million, or 0.47% of total assets, at June 30, 2025, as compared to $10.6 million, or 0.23% of total assets, at June 30, 2024. The rise in NPAs reflects an increase in NPLs, which was partially offset by a decrease in other real estate owned. Compared to March 31, 2025, the linked quarter, NPAs declined $104,000. The year-over-year increase in NPLs was primarily driven by several commercial relationships added during the third and fourth quarters of fiscal 2025, along with the addition of other smaller loans throughout the year, partially offset by net charge-offs. In the fourth quarter, a $5.7 million construction loan related to the development of a senior living facility was placed on nonaccrual status. As previously disclosed in the third quarter, three commercial loans with common guarantors, which are primarily secured by two non-owner-occupied, special-purpose commercial properties located in different states, were also added to NPLs. These properties, which were previously leased to a single tenant that has since become insolvent, are now vacant. Some guarantors are shared across these three loans. The total balance of these three loans at fiscal year end 2025 was $6.2 million, after recognition of $3.8 million charge-offs in the current quarter that were previously reserved for in the linked quarter.

The ACL at June 30, 2025, totaled $51.6 million, representing 1.26% of gross loans and 224% of nonperforming loans, as compared to an ACL of $52.5 million, representing 1.36% of gross loans and 786% of nonperforming loans, at June 30, 2024. The Company has estimated its expected credit losses as of June 30, 2025, under ASC 326-20, and management believes the ACL as of that date was adequate based on that estimate. There remains, however, significant uncertainty as borrowers adjust to relatively high market interest rates, although the Federal Reserve has reduced short-term rates somewhat during this fiscal year. The decrease in the ACL was primarily attributable to net charge-offs, which reduced the required reserves for individually evaluated loans, as well as a decline in certain qualitative adjustments relevant to assessing expected credit losses. This decrease was partially offset by higher required reserves for pooled loans, reflecting management’s updated view of a deteriorating economic outlook and an increase in modeled loss drivers compared to the prior assessment as of June 30, 2024. Additional provisions were also recorded to support loan growth and overdraft exposures during fiscal year 2025. As a percentage of average loans outstanding, the Company recorded net charge offs of 0.53% (annualized) during the current quarter, as compared to 0.06% for the same quarter of the prior fiscal year. In the three-month period ended June 30, 2025, net charge offs were $5.3 million, with the increase from prior periods primarily attributable to the $3.8 million special-purpose CRE charge off noted above, and a $742,000 commercial and industrial charge off related to a commercial contractor. For fiscal year 2025, net charge offs as a percentage of average loans were 0.17%, as compared to 0.05% for fiscal year 2024.

Total liabilities were $4.5 billion at June 30, 2025, an increase of $359.3 million, or 8.7%, as compared to June 30, 2024. Growth primarily reflected increases in total deposits, other liabilities, accrued interest and income taxes payable, and securities sold under agreement to repurchase.

Deposits were $4.3 billion at June 30, 2025, an increase of $338.3 million, or 8.6%, as compared to June 30, 2024. The deposit portfolio saw increases in certificates of deposit and savings accounts, as customers remained willing to move balances into special rate time deposits and high yield savings accounts in the higher rate environment. Public unit balances totaled $550.8 million at June 30, 2025, a decrease of $43.8 million compared to June 30, 2024, mostly due to the Company losing the bid to retain a larger local public unit depositor early in the fiscal year. Brokered deposits totaled $233.6 million at June 30, 2025, an increase of $61.9 million as compared to June 30, 2024. The average loan-to-deposit ratio for the fourth quarter of fiscal 2025 was 94.5%, as compared to 96.3% for the same period of the prior fiscal year. The period end loan-to-deposit ratios were 95.8% and 97.6% as of June 30, 2024, and 2025, respectively. The table below illustrates changes in deposit balances by type over recent periods:


Summary Deposit Data as of:	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,
(dollars in thousands)	2025		2025		2024		2024		2024

Non-interest bearing deposits	$	508,110	$	513,418	$	514,199	$	503,209	$	514,107
NOW accounts		1,132,298		1,167,296		1,211,402		1,128,917		1,239,663
MMDAs – non-brokered		329,837		345,810		347,271		320,252		334,774
Brokered MMDAs		1,414		2,013		3,018		12,058		2,025
Savings accounts		661,115		626,175		573,291		556,030		517,084
Total nonmaturity deposits		2,632,774		2,654,712		2,649,181		2,520,466		2,607,653

Certificates of deposit – non-brokered		1,414,945		1,373,109		1,310,421		1,258,583		1,163,650
Brokered certificates of deposit		233,649		233,561		251,025		261,093		171,756
Total certificates of deposit		1,648,594		1,606,670		1,561,446		1,519,676		1,335,406

Total deposits	$	4,281,368	$	4,261,382	$	4,210,627	$	4,040,142	$	3,943,059

Public unit nonmaturity accounts	$	435,632	$	472,010	$	482,406	$	447,638	$	541,445
Public unit certificates of deposit		115,204		103,741		83,506		62,882		53,144
Total public unit deposits	$	550,836	$	575,751	$	565,912	$	510,520	$	594,589

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

The Company’s stockholders’ equity was $544.7 million at June 30, 2025, an increase of $55.9 million, or 11.4%, as compared to June 30, 2024. The increase was attributable primarily to earnings retained after cash dividends paid, in combination with a $6.1 million reduction in accumulated other comprehensive losses (AOCL) as the market value of the Company’s investments appreciated due to the decrease in market interest rates. The AOCL totaled $11.4 million at June 30, 2025, as compared to $17.5 million at June 30, 2024. The Company does not hold any securities classified as held-to-maturity.

Quarterly Income Statement Summary:

The Company’s net interest income for the three-month period ended June 30, 2025, was $40.3 million, an increase of $5.2 million, or 14.9%, as compared to the same period of the prior fiscal year. The increase was attributable to a 7.9% increase in the average balance of interest-earning assets in the current three-month period compared to the same period a year ago, and an increase of 21 basis points in the net interest margin, from 3.25% to 3.46%. The primary driver of the net interest margin expansion, compared to the year ago period, was the cost of interest-bearing liabilities decreasing 20 basis points, while the yield on interest-earning assets increased seven basis points. The overall increase in spread of 27 basis points was partially offset by a lower level of average interest-earning assets to average interest-bearing liabilities totaling 120.6% at June 30, 2025, down 1.1 percentage points compared to the year ago period, due to stronger deposit growth.

Loan discount accretion and deposit premium amortization related to the November 2018 acquisition of First Commercial Bank, the May 2020 acquisition of Central Federal Savings & Loan Association, the February 2022 merger of FortuneBank, and the January 2023 acquisition of Citizens Bank & Trust resulted in $612,000 in net interest income for the three-month period ended June 30, 2025, as compared to $1.1 million in net interest income for the same period a year ago. Combined, this component of net interest income contributed five basis points to net interest margin in the three-month period ended June 30, 2025, as compared to a ten basis point contribution for the same period of the prior fiscal year, and as compared to a 13-basis point contribution in the linked quarter, ended March 31, 2025, when net interest margin was 3.39%.

The Company recorded a PCL of $2.5 million in the three-month period ended June 30, 2025, as compared to a PCL of $900,000 in the same period of the prior fiscal year. The current period PCL was the result of a $2.0 million provision attributable to the ACL for loan balances outstanding and a $475,000 provision attributable to the allowance for off-balance sheet credit exposures. The increase was primarily attributable to providing for net charge-offs and to support loan growth, in addition to an increase in unfunded balances and an increase in the expected funding rate on available credit.

The Company’s noninterest income for the three-month period ended June 30, 2025, was $7.3 million, a decrease of $487,000, or 6.3%, as compared to the same period of the prior fiscal year. The decrease was attributable to lower other noninterest income and loan servicing fees. The decrease in other noninterest income was associated with the change in accounting for realization of tax credits, as the Company has adopted the proportional amortization method under ASU 2023-02, which results in a direct reduction to the provision for income taxes in fiscal 2025. The tax credit benefit recognized in other noninterest income in the three-month period ended June 2024 was $675,000. Loan servicing fees were negatively impacted by the recognition of a change in the fair value of mortgage servicing rights, which in the fourth quarter of fiscal 2025 resulted in a negative adjustment of $108,000, as compared to a benefit of $131,000 in the same period a year ago, due to changes in market rates and prepayment assumptions. These decreases as compared to the prior year period were partially offset by increases in other loan fees attributable to increased loan originations and higher deposit account charges and related fees primarily attributable to an increase in non-sufficient fund activity and an increase in maintenance and activity fees collected.

Noninterest expense for the three-month period ended June 30, 2025, was $26.0 million, an increase of $974,000, or 3.9%, as compared to the same period of the prior fiscal year. The increase as compared to the year-ago period was primarily attributable to increases in legal and professional fees, data processing expense, and other noninterest expense. The Company experienced elevated legal and professional fees associated with consulting costs to negotiate a new contract with a large vendor totaling $425,000. Data processing expense increased due to an increase in third party ancillary software expenses and one-time reclassification of data processing expenses to other categories in the year-ago period. The increase in other noninterest expense was primarily due to card fraud losses and deposit product expenses. These increases as compared to the prior year period were partially offset by decreases in intangible amortization expense, as the core deposit intangible recognized in an older merger was fully amortized in the second quarter of fiscal 2025, and by reduced telecommunication expenses.

The efficiency ratio for the three-month period ended June 30, 2025, was 54.6%, as compared to 58.3% in the same period of the prior fiscal year. The improvement was attributable to net interest income growing faster than operating expenses.

The income tax provision was $3.4 million for the three-month period ended June 30, 2025, and for the same period of the prior fiscal year. The effective tax rate for the fourth quarter of fiscal year 2025 was 17.5%, as compared to 20.2% in the same period of the prior fiscal year. The decrease in the effective tax rate was primarily attributable to a $701,000 income tax benefit from the recognition of tax credits utilizing the proportional amortization method under ASC 2023-02. In the same period of the prior fiscal year, similar benefits were recognized through noninterest income.

Forward-Looking Information:

Except for the historical information contained herein, the matters discussed in this press release may be deemed to be forward-looking statements that are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from the forward-looking statements, including: potential adverse impacts to the economic conditions in the Company’s local market areas, other markets where the Company has lending relationships, or other aspects of the Company’s business operations or financial markets, expected cost savings, synergies and other benefits from our merger and acquisition activities might not be realized to the extent expected, within the anticipated time frames, or at all, and costs or difficulties relating to integration matters, including but not limited to customer and employee retention and labor shortages, might be greater than expected and goodwill impairment charges might be incurred; the strength of the United States economy in general and the strength of local economies in which we conduct operations; fluctuations in interest rates and the possibility of a recession; monetary and fiscal policies of the FRB and the U.S. Government and other governmental initiatives affecting the financial services industry; potential imposition of new or increased tariffs or changes to existing trade policies that could affect economic activity or specific industry sectors; the risks of lending and investing activities, including changes in the level and direction of loan delinquencies and write-offs and changes in estimates of the adequacy of the allowance for credit losses; our ability to access cost-effective funding; the timely development and acceptance of our new products and services and the perceived overall value of these products and services by users, including the features, pricing and quality compared to competitors’ products and services; fluctuations in real estate values in both residential and commercial real estate markets, as well as agricultural business conditions; demand for loans and deposits; legislative or regulatory changes that adversely affect our business; changes in accounting principles, policies, or guidelines; results of regulatory examinations, including the possibility that a regulator may, among other things, require an increase in our reserve for credit losses or write-down of assets; the impact of technological changes; and our success at managing the risks involved in the foregoing. Any forward-looking statements are based upon management’s beliefs and assumptions at the time they are made. We undertake no obligation to publicly update or revise any forward-looking statements or to update the reasons why actual results could differ from those contained in such statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking statements discussed might not occur, and you should not put undue reliance on any forward-looking statements.

Southern Missouri Bancorp, Inc.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION


Summary Balance Sheet Data as of:	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,
(dollars in thousands, except per share data)	2025			2025			2024			2024			2024

Cash equivalents and time deposits	$	193,105		$	227,136		$	146,078		$	75,591		$	61,395
Available for sale (AFS) securities		460,844			462,930			468,060			420,209			427,903
FHLB/FRB membership stock		18,500			18,269			18,099			18,064			17,802
Loans held for sale		431			—			—			—			—
Loans receivable, gross		4,099,698			4,023,509			4,026,979			3,966,518			3,849,803
Allowance for credit losses		51,629			54,940			54,740			54,437			52,516
Loans receivable, net		4,048,069			3,968,569			3,972,239			3,912,081			3,797,287
Bank-owned life insurance		75,691			75,156			74,643			74,119			73,601
Intangible assets		73,721			74,677			75,399			76,340			77,232
Premises and equipment		95,982			95,987			96,418			96,087			95,952
Other assets		53,264			53,772			56,738			56,709			53,144
Total assets	$	5,019,607		$	4,976,496		$	4,907,674		$	4,729,200		$	4,604,316

Interest-bearing deposits	$	3,773,258		$	3,747,964		$	3,696,428		$	3,536,933		$	3,428,952
Noninterest-bearing deposits		508,110			513,418			514,199			503,209			514,107
Securities sold under agreements to repurchase		15,000			15,000			15,000			15,000			9,398
FHLB advances		104,072			104,072			107,070			107,069			102,050
Other liabilities		51,267			44,057			39,424			38,191			37,905
Subordinated debt		23,208			23,195			23,182			23,169			23,156
Total liabilities		4,474,915			4,447,706			4,395,303			4,223,571			4,115,568

Total stockholders’ equity		544,692			528,790			512,371			505,629			488,748

Total liabilities and stockholders’ equity	$	5,019,607		$	4,976,496		$	4,907,674		$	4,729,200		$	4,604,316

Equity to assets ratio		10.85	%		10.63	%		10.44	%		10.69	%		10.61	%

Common shares outstanding		11,299,467			11,299,962			11,277,167			11,277,167			11,277,737
Less: Restricted common shares not vested		50,163			50,658			46,653			56,553			57,956
Common shares for book value determination		11,249,304			11,249,304			11,230,514			11,220,614			11,219,781

Book value per common share	$	48.42		$	47.01		$	45.62		$	45.06		$	43.56
Less: Intangible assets per common share		6.55			6.64			6.71			6.80			6.88
Tangible book value per common share ⁽¹⁾		41.87			40.37			38.91			38.26			36.68
Closing market price		54.78			52.02			57.37			56.49			45.01

(1) Non-GAAP financial measure.


Nonperforming asset data as of:	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,
(dollars in thousands)	2025			2025			2024			2024			2024

Nonaccrual loans	$	23,040		$	21,970		$	8,309		$	8,206		$	6,680
Accruing loans 90 days or more past due		—			—			—			—			—
Total nonperforming loans		23,040			21,970			8,309			8,206			6,680
Other real estate owned (OREO)		625			1,775			2,423			3,842			3,865
Personal property repossessed		32			56			37			21			23
Total nonperforming assets	$	23,697		$	23,801		$	10,769		$	12,069		$	10,568

Total nonperforming assets to total assets		0.47	%		0.48	%		0.22	%		0.26	%		0.23	%
Total nonperforming loans to gross loans		0.56	%		0.55	%		0.21	%		0.21	%		0.17	%
Allowance for credit losses to nonperforming loans		224.08	%		250.07	%		658.80	%		663.38	%		786.17	%
Allowance for credit losses to gross loans		1.26	%		1.37	%		1.36	%		1.37	%		1.36	%

Performing modifications to borrowers experiencing financial difficulty	$	26,642		$	23,304		$	24,083		$	24,340		$	24,602


	For the three-month period ended
Quarterly Summary Income Statement Data:	June 30,		Mar. 31,		Dec. 31,		Sep. 30,		June 30,
(dollars in thousands, except per share data)	2025		2025		2024		2024		2024

Interest income:
Cash equivalents	$	1,698	$	1,585	$	784	$	78	$	541
AFS securities and membership stock		5,586		5,684		5,558		5,547		5,677
Loans receivable		63,354		62,656		63,082		61,753		58,449
Total interest income		70,638		69,925		69,424		67,378		64,667
Interest expense:
Deposits		28,644		28,795		29,538		28,796		27,999
Securities sold under agreements to repurchase		191		189		226		160		125
FHLB advances		1,080		1,076		1,099		1,326		1,015
Subordinated debt		390		386		418		435		433
Total interest expense		30,305		30,446		31,281		30,717		29,572
Net interest income		40,333		39,479		38,143		36,661		35,095
Provision for credit losses		2,500		932		932		2,159		900
Noninterest income:
Deposit account charges and related fees		2,156		2,048		2,237		2,184		1,978
Bank card interchange income		1,839		1,341		1,301		1,499		1,770
Loan late charges		—		—		—		—		170
Loan servicing fees		167		224		232		286		494
Other loan fees		917		843		944		1,063		617
Net realized gains on sale of loans		143		114		133		361		97
Net realized gains (losses) on sale of AFS securities		—		48		—		—		—
Earnings on bank owned life insurance		533		512		522		517		498
Insurance brokerage commissions		368		340		300		287		331
Wealth management fees		825		902		843		730		838
Other noninterest income		332		294		353		247		974
Total noninterest income		7,280		6,666		6,865		7,174		7,767
Noninterest expense:
Compensation and benefits		13,852		13,771		13,737		14,397		13,894
Occupancy and equipment, net		3,745		3,869		3,585		3,689		3,790
Data processing expense		2,573		2,359		2,224		2,171		1,929
Telecommunications expense		312		330		354		428		468
Deposit insurance premiums		601		674		588		472		638
Legal and professional fees		1,165		603		619		1,208		516
Advertising		551		530		442		546		640
Postage and office supplies		336		350		283		306		308
Intangible amortization		857		889		897		897		1,018
Foreclosed property expenses, net		(18)		37		73		12		52
Other noninterest expense		2,002		1,979		2,074		1,715		1,749
Total noninterest expense		25,976		25,391		24,876		25,841		25,002
Net income before income taxes		19,137		19,822		19,200		15,835		16,960
Income taxes		3,351		4,139		4,547		3,377		3,430
Net income		15,786		15,683		14,653		12,458		13,530
Less: Distributed and undistributed earnings allocated
to participating securities		71		71		61		62		69
Net income available to common shareholders	$	15,715	$	15,612	$	14,592	$	12,396	$	13,461

Basic earnings per common share	$	1.40	$	1.39	$	1.30	$	1.10	$	1.19
Diluted earnings per common share		1.39		1.39		1.30		1.10		1.19
Dividends per common share		0.23		0.23		0.23		0.23		0.21
Average common shares outstanding:
Basic		11,250,000		11,238,000		11,231,000		11,221,000		11,276,000
Diluted		11,270,000		11,262,000		11,260,000		11,240,000		11,283,000


	For the three-month period ended
Quarterly Average Balance Sheet Data:	June 30,			Mar. 31,			Dec. 31,			Sep. 30,			June 30,
(dollars in thousands)	2025			2025			2024			2024			2024

Interest-bearing cash equivalents	$	151,380		$	143,206		$	64,976		$	5,547		$	39,432
AFS securities and membership stock		498,491			508,642			479,633			460,187			476,198
Loans receivable, gross		4,018,769			4,003,552			3,989,643			3,889,740			3,809,209
Total interest-earning assets		4,668,640			4,655,400			4,534,252			4,355,474			4,324,839
Other assets		299,217			290,739			291,217			283,056			285,956
Total assets	$	4,967,857		$	4,946,139		$	4,825,469		$	4,638,530		$	4,610,795

Interest-bearing deposits	$	3,727,836		$	3,737,849		$	3,615,767		$	3,416,752		$	3,417,360
Securities sold under agreements to repurchase		15,000			15,000			15,000			12,321			9,398
FHLB advances		104,053			106,187			107,054			123,723			102,757
Subordinated debt		23,201			23,189			23,175			23,162			23,149
Total interest-bearing liabilities		3,870,090			3,882,225			3,760,996			3,575,958			3,552,664
Noninterest-bearing deposits		524,860			513,157			524,878			531,946			539,637
Other noninterest-bearing liabilities		37,014			31,282			31,442			33,737			35,198
Total liabilities		4,431,964			4,426,664			4,317,316			4,141,641			4,127,499

Total stockholders’ equity		535,893			519,475			508,153			496,889			483,296

Total liabilities and stockholders’ equity	$	4,967,857		$	4,946,139		$	4,825,469		$	4,638,530		$	4,610,795

Return on average assets		1.27	%		1.27	%		1.21	%		1.07	%		1.17	%
Return on average common stockholders’ equity		11.8	%		12.1	%		11.5	%		10.0	%		11.2	%

Net interest margin		3.46	%		3.39	%		3.36	%		3.37	%		3.25	%
Net interest spread		2.92	%		2.87	%		2.79	%		2.75	%		2.65	%

Efficiency ratio		54.6	%		55.1	%		55.3	%		59.0	%		58.3	%

The MIL Network –

July 24, 2025

MIL-OSI: Live Oak Bancshares, Inc. Reports Second Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

WILMINGTON, N.C., July 23, 2025 (GLOBE NEWSWIRE) — Live Oak Bancshares, Inc. (NYSE: LOB) (“Live Oak” or “the Company”) today reported second quarter of 2025 net income attributable to the Company of $23.4 million, or $0.51 per diluted share.

Live Oak’s performance in the quarter, compared to the first quarter of 2025, includes these notable items:

Record second quarter production of $1.53 billion accompanied by strong deposit growth of $198.8 million, with total assets growing by 1.7% to $13.83 billion
Net interest income increased 8.6% and net interest margin increased eight basis points from 3.20% to 3.28%
14.0% increase in revenue and 6.3% increase in noninterest expenses generated 29.4% increase in pre-provision net revenue¹
Provision expense for credit losses of $23.3 million, a decrease of $5.7 million, driven by moderating credit trends, loan growth, and the current macroeconomic environment

“Live Oak Bank delivered an outstanding quarter in Q2, driven by excellent growth, healthy revenue, and lower provision expense,” said Live Oak Chairman and CEO James S. (Chip) Mahan III. “We remain focused on supporting our nation’s entrepreneurs as they continue to navigate a backdrop of uncertainty while also providing the service, technology and financial guidance they need to succeed.”

Conference Call

Live Oak will host a conference call to discuss the Company’s financial results and business outlook tomorrow, July 24, 2025, at 9:00 a.m. ET. The call will be accessible by telephone and webcast using Conference ID: 25229. A supplementary slide presentation will be posted to the website prior to the event, and a replay will be available for 12 months following the event. The conference call details are as follows:

Live Telephone Dial-In

U.S.: 800.549.8228
International: +1 646.564.2877
Pass Code: None Required

Live Webcast Log-In

Webcast Link: investor.liveoakbank.com
Registration: Name and Email Required
Multi-Factor Code: Provided After Registration

(1)	See accompanying GAAP to Non-GAAP Reconciliation.

Second Quarter 2025 Key Measures

(Dollars in thousands, except per share data)							Increase (Decrease)
	2Q 2025			1Q 2025			Dollars		Percent		2Q 2024
Total revenue⁽¹⁾	$	143,747		$	126,113		$	17,634	14.0	%	$	125,479
Total noninterest expense		89,293			84,017			5,276	6.3			77,656
Income before taxes		31,202			13,132			18,070	137.6			36,058
Effective tax rate		25.0	%		26.4	%	n/a		n/a			25.2	%
Net income attributable to Live Oak Bancshares, Inc.	$	23,428		$	9,717		$	13,711	141.1	%	$	26,963
Diluted earnings per share		0.51			0.21			0.30	142.9			0.59
Loan and lease production:
Loans and leases originated	$	1,526,592		$	1,396,223		$	130,369	9.3	%	$	1,171,141
% Fully funded		39.7	%		46.0	%	n/a		n/a			38.2	%
Total loans and leases:	$	11,364,846		$	11,061,866		$	302,980	2.7	%	$	9,535,766
Total assets:		13,831,208			13,595,704			235,504	1.7			11,868,570
Total deposits:		12,594,790			12,395,945			198,845	1.6			10,707,031

(1)	Total revenue consists of net interest income and total noninterest income.

Important Note Regarding Forward-Looking Statements

Statements in this press release that are based on other than historical data or that express the Company’s plans or expectations regarding future events or determinations are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Statements based on historical data are not intended and should not be understood to indicate the Company’s expectations regarding future events. Forward-looking statements provide current expectations or forecasts of future events or determinations. These forward-looking statements are not guarantees of future performance or determinations, nor should they be relied upon as representing management’s views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties, and actual results may differ materially from those presented, either expressed or implied, in this press release. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include changes in Small Business Administration (“SBA”) rules, regulations or loan products, including the Section 7(a) program, changes in SBA standard operating procedures or changes in Live Oak Banking Company’s status as an SBA Preferred Lender; changes in rules, regulations or procedures for other government loan programs, including those of the United States Department of Agriculture; the impacts of any pandemic or public health situation on trade (including supply chains and export levels), travel, employee productivity and other economic activities that may have a destabilizing and negative effect on financial markets, economic activity and customer behavior; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity, and regulatory responses to these developments; a reduction in or the termination of the Company’s ability to use the technology-based platform that is critical to the success of its business model, including a failure in or a breach of operational or security systems or those of its third-party service providers; risks relating to the material weakness we identified in our internal control over financial reporting; technological risks and developments, including cyber threats, attacks, or events; competition from other lenders; the Company’s ability to attract and retain key personnel; market and economic conditions and the associated impact on the Company; operational, liquidity and credit risks associated with the Company’s business; changes in political and economic conditions, including any prolonged U.S. government shutdown; the impact of heightened regulatory scrutiny of financial products and services and the Company’s ability to comply with regulatory requirements and expectations; changes in tariffs and trade barriers, including potential changes in U.S. and international trade policies and the resulting impact on the Company and its customers; a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, and uncertainties surrounding the debt ceiling and the federal budget; adverse results, including related fees and expenses, from pending or future lawsuits, government investigations or private actions; and the other factors discussed in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s Internet site (http://www.sec.gov). Except as required by law, the Company specifically disclaims any obligation to update any factors or to publicly announce the result of revisions to any of the forward-looking statements included herein to reflect future events or developments.

About Live Oak Bancshares, Inc.

Live Oak Bancshares, Inc. (NYSE: LOB) is a financial holding company and the parent company of Live Oak Bank. Live Oak Bancshares and its subsidiaries partner with businesses that share a groundbreaking focus on service and technology to redefine banking. To learn more, visit www.liveoak.bank.

Contacts:

Live Oak Bancshares, Inc.
Quarterly Statements of Income (unaudited)
(Dollars in thousands, except per share data)

	Three Months Ended															2Q 2025 Change vs.
	2Q 2025			1Q 2025			4Q 2024			3Q 2024			2Q 2024			1Q 2025		2Q 2024
Interest income																%		%
Loans and fees on loans	$	204,513		$	195,616		$	194,821		$	192,170		$	181,840		4.5		12.5
Investment securities, taxable		11,648			11,089			10,490			9,750			9,219		5.0		26.3
Other interest earning assets		8,123			6,400			7,257			7,016			7,389		26.9		9.9
Total interest income		224,284			213,105			212,568			208,936			198,448		5.2		13.0
Interest expense
Deposits		113,380			110,888			113,357			110,174			105,358		2.2		7.6
Borrowings		1,683			1,685			1,737			1,762			1,770		(0.1	)	(4.9	)
Total interest expense		115,063			112,573			115,094			111,936			107,128		2.2		7.4
Net interest income		109,221			100,532			97,474			97,000			91,320		8.6		19.6
Provision for credit losses		23,252			28,964			33,581			34,502			11,765		(19.7	)	97.6
Net interest income after provision for credit losses		85,969			71,568			63,893			62,498			79,555		20.1		8.1
Noninterest income
Loan servicing revenue		8,565			8,298			8,524			8,040			7,347		3.2		16.6
Loan servicing asset revaluation		(3,057	)		(4,728	)		(2,326	)		(4,207	)		(2,878	)	35.3		(6.2	)
Net gains on sales of loans		21,641			18,648			18,356			16,646			14,395		16.0		50.3
Net gain (loss) on loans accounted for under the fair value option		1,082			(1,034	)		195			2,255			172		204.6		529.1
Equity method investments (loss) income		(2,716	)		(2,239	)		(2,739	)		(1,393	)		(1,767	)	(21.3	)	(53.7	)
Equity security investments gains, net		1,004			20			12			909			161		4,920.0		523.6
Lease income		3,103			2,573			2,456			2,424			2,423		20.6		28.1
Management fee income		—			—			—			1,116			3,271		—		(100.0	)
Other noninterest income		4,904			4,043			6,115			7,142			11,035		21.3		(55.6	)
Total noninterest income		34,526			25,581			30,593			32,932			34,159		35.0		1.1
Noninterest expense
Salaries and employee benefits		49,137			48,008			45,214			44,524			46,255		2.4		6.2
Travel expense		2,576			2,795			2,628			2,344			2,328		(7.8	)	10.7
Professional services expense		2,874			3,024			2,797			3,287			3,061		(5.0	)	(6.1	)
Advertising and marketing expense		4,420			3,665			1,979			2,473			3,004		20.6		47.1
Occupancy expense		2,369			2,737			2,558			2,807			2,388		(13.4	)	(0.8	)
Technology expense		10,066			9,251			9,406			9,081			7,996		8.8		25.9
Equipment expense		3,685			3,745			3,769			3,472			3,511		(1.6	)	5.0
Other loan origination and maintenance expense		4,190			4,585			4,812			4,872			3,659		(8.6	)	14.5
Renewable energy tax credit investment impairment		270			—			1,172			115			170		100.0		58.8
FDIC insurance		3,545			3,551			3,053			1,933			2,649		(0.2	)	33.8
Other expense		6,161			2,656			3,869			2,681			2,635		132.0		133.8
Total noninterest expense		89,293			84,017			81,257			77,589			77,656		6.3		15.0
Income before taxes		31,202			13,132			13,229			17,841			36,058		137.6		(13.5	)
Income tax expense		7,815			3,464			3,386			4,816			9,095		125.6		(14.1	)
Net income		23,387			9,668			9,843			13,025			26,963		141.9		(13.3	)
Net loss attributable to non-controlling interest		41			49			57			—			—		(16.3	)	100.0
Net income attributable to Live Oak Bancshares, Inc.	$	23,428		$	9,717		$	9,900		$	13,025		$	26,963		141.1		(13.1	)
Earnings per share
Basic	$	0.51		$	0.21		$	0.22		$	0.28		$	0.60		142.9		(15.0	)
Diluted	$	0.51		$	0.21		$	0.22		$	0.28		$	0.59		142.9		(13.6	)
Weighted average shares outstanding
Basic		45,634,741			45,377,965			45,224,470			45,073,482			44,974,942
Diluted		45,795,608			45,754,499			46,157,979			45,953,947			45,525,082

Live Oak Bancshares, Inc.
Quarterly Balance Sheets (unaudited)
(Dollars in thousands)

	As of the quarter ended															2Q 2025 Change vs.
	2Q 2025			1Q 2025			4Q 2024			3Q 2024			2Q 2024			1Q 2025		2Q 2024
Assets																%		%
Cash and due from banks	$	662,755		$	744,263		$	608,800		$	666,585		$	615,449		(11.0	)	7.7
Certificates of deposit with other banks		250			250			250			250			250		—		—
Investment securities available-for-sale		1,325,206			1,312,680			1,248,203			1,233,466			1,151,195		1.0		15.1
Loans held for sale		350,791			367,955			346,002			359,977			363,632		(4.7	)	(3.5	)
Loans and leases held for investment⁽¹⁾		11,014,055			10,693,911			10,233,374			9,831,891			9,172,134		3.0		20.1
Allowance for credit losses on loans and leases		(182,231	)		(190,184	)		(167,516	)		(168,737	)		(137,867	)	4.2		(32.2	)
Net loans and leases		10,831,824			10,503,727			10,065,858			9,663,154			9,034,267		3.1		19.9
Premises and equipment, net		246,493			259,113			264,059			267,032			267,864		(4.9	)	(8.0	)
Foreclosed assets		6,318			2,108			1,944			8,015			8,015		199.7		(21.2	)
Servicing assets		60,359			56,911			56,144			52,553			51,528		6.1		17.1
Other assets		347,212			348,697			352,120			356,314			376,370		(0.4	)	(7.7	)
Total assets	$	13,831,208		$	13,595,704		$	12,943,380		$	12,607,346		$	11,868,570		1.7		16.5
Liabilities and shareholders’ equity
*Liabilities*
Deposits:
Noninterest-bearing	$	393,393		$	386,108		$	318,890		$	258,844		$	264,013		1.9		49.0
Interest-bearing		12,201,397			12,009,837			11,441,604			11,141,703			10,443,018		1.6		16.8
Total deposits		12,594,790			12,395,945			11,760,494			11,400,547			10,707,031		1.6		17.6
Borrowings		107,659			110,247			112,820			115,371			117,745		(2.3	)	(8.6	)
Other liabilities		61,494			58,065			66,570			83,672			82,745		5.9		(25.7	)
Total liabilities		12,763,943			12,564,257			11,939,884			11,599,590			10,907,521		1.6		17.0
*Shareholders’ equity*
Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding		—			—			—			—			—		—		—
Class A common stock (voting)		377,953			370,513			365,607			361,925			356,381		2.0		6.1
Class B common stock (non-voting)		—			—			—			—			—		—		—
Retained earnings		746,450			724,215			715,767			707,026			695,172		3.1		7.4
Accumulated other comprehensive loss		(61,514	)		(67,698	)		(82,344	)		(61,195	)		(90,504	)	9.1		32.0
Total shareholders’ equity attributed to Live Oak Bancshares, Inc.		1,062,889			1,027,030			999,030			1,007,756			961,049		3.5		10.6
Non-controlling interest		4,376			4,417			4,466			—			—		(0.9	)	100.0
Total shareholders’ equity		1,067,265			1,031,447			1,003,496			1,007,756			961,049		3.5		11.1
Total liabilities and shareholders’ equity	$	13,831,208		$	13,595,704		$	12,943,380		$	12,607,346		$	11,868,570		1.7		16.5

(1)	Includes $303.8 million, $316.8 million, $328.7 million, $343.4 million and $363.0 million loans measured at fair value for the quarters ended June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024, and June 30, 2024, respectively.

Live Oak Bancshares, Inc.
Statements of Income (unaudited)
(Dollars in thousands, except per share data)

	Six Months Ended
	June 30, 2025			June 30, 2024
Interest income
Loans and fees on loans	$	400,129		$	357,850
Investment securities, taxable		22,737			18,173
Other interest earning assets		14,523			14,845
Total interest income		437,389			390,868
Interest expense
Deposits		224,268			207,356
Borrowings		3,368			2,081
Total interest expense		227,636			209,437
Net interest income		209,753			181,431
Provision for credit losses		52,216			28,129
Net interest income after provision for credit losses		157,537			153,302
Noninterest income
Loan servicing revenue		16,863			14,971
Loan servicing asset revaluation		(7,785	)		(5,622	)
Net gains on sales of loans		40,289			25,897
Net gain (loss) on loans accounted for under the fair value option		48			(47	)
Equity method investments (loss) income		(4,955	)		(6,789	)
Equity security investments gain (losses), net		1,024			(368	)
Lease income		5,676			4,876
Management fee income		—			6,542
Other noninterest income		8,947			20,796
Total noninterest income		60,107			60,256
Noninterest expense
Salaries and employee benefits		97,145			93,530
Travel expense		5,371			4,766
Professional services expense		5,898			4,939
Advertising and marketing expense		8,085			6,696
Occupancy expense		5,106			4,635
Technology expense		19,317			15,719
Equipment expense		7,430			6,585
Other loan origination and maintenance expense		8,775			7,570
Renewable energy tax credit investment impairment (recovery)		270			(757	)
FDIC insurance		7,096			5,849
Other expense		8,817			5,861
Total noninterest expense		173,310			155,393
Income before taxes		44,334			58,165
Income tax expense		11,279			3,616
Net income		33,055			54,549
Net loss attributable to non-controlling interest		90			—
Net income attributable to Live Oak Bancshares, Inc.	$	33,145		$	54,549
Earnings per share
Basic	$	0.72		$	1.22
Diluted	$	0.72		$	1.20
Weighted average shares outstanding
Basic		45,556,842			44,868,625
Diluted		45,825,543			45,583,146

Live Oak Bancshares, Inc.
Quarterly Selected Financial Data
(Dollars in thousands, except per share data)

	As of and for the three months ended
	2Q 2025			1Q 2025			4Q 2024			3Q 2024			2Q 2024
Income Statement Data
Net income attributable to Live Oak Bancshares, Inc.	$	23,428		$	9,717		$	9,900		$	13,025		$	26,963
Per Common Share
Net income, diluted	$	0.51		$	0.21		$	0.22		$	0.28		$	0.59
Dividends declared		0.03			0.03			0.03			0.03			0.03
Book value		23.36			22.62			22.12			22.32			21.35
Tangible book value ⁽¹⁾		23.29			22.55			22.05			22.24			21.28
Performance Ratios
Return on average assets (annualized)		0.68	%		0.30	%		0.31	%		0.43	%		0.93	%
Return on average equity (annualized)		8.85			3.78			3.85			5.21			11.39
Net interest margin		3.28			3.20			3.15			3.33			3.28
Efficiency ratio ⁽¹⁾		62.12			66.62			63.45			59.72			61.89
Noninterest income to total revenue		24.02			20.28			23.89			25.35			27.22
Selected Loan Metrics
Loans and leases originated	$	1,526,592		$	1,396,223		$	1,421,118		$	1,757,856		$	1,171,141
Outstanding balance of sold loans serviced		5,321,284			4,949,962			4,715,895			4,452,750			4,292,857
Asset Quality Ratios
Allowance for credit losses to loans and leases held for investment ⁽³⁾		1.70	%		1.83	%		1.69	%		1.78	%		1.57	%
Net charge-offs ⁽³⁾	$	31,445		$	6,774		$	33,566		$	1,710		$	8,253
Net charge-offs to average loans and leases held for investment ^{(2) (3)}		1.19	%		0.27	%		1.39	%		0.08	%		0.38	%

Nonperforming loans and leases at historical cost ⁽³⁾
Unguaranteed	$	59,555		$	99,907		$	81,412		$	49,398		$	37,340
Guaranteed		336,777			322,993			222,885			166,177			122,752
Total		396,332			422,900			304,297			215,575			160,092
Unguaranteed nonperforming historical cost loans and leases, to loans and leases held for investment ⁽³⁾		0.56	%		0.96	%		0.82	%		0.52	%		0.42	%

Nonperforming loans at fair value ⁽⁴⁾
Unguaranteed	$	8,873		$	9,938		$	9,115		$	8,672		$	9,590
Guaranteed		60,453			58,100			54,873			49,822			51,570
Total		69,326			68,038			63,988			58,494			61,160
Unguaranteed nonperforming fair value loans to fair value loans held for investment ⁽⁴⁾		2.92	%		3.14	%		2.77	%		2.53	%		2.64	%

Capital Ratios
Common equity tier 1 capital (to risk-weighted assets)		10.67	%		10.67	%		11.04	%		11.19	%		11.85	%
Tier 1 leverage capital (to average assets)		7.90			8.03			8.21			8.60			8.71

Notes to Quarterly Selected Financial Data
(1) See accompanying GAAP to Non-GAAP Reconciliation.
(2) Quarterly net charge-offs as a percentage of quarterly average loans and leases held for investment, annualized.
(3) Loans and leases at historical cost only (excludes loans measured at fair value).
(4) Loans accounted for under the fair value option only (excludes loans and leases carried at historical cost).

Live Oak Bancshares, Inc.
Quarterly Average Balances and Net Interest Margin
(Dollars in thousands)

	Three Months Ended June 30, 2025							Three Months Ended March 31, 2025
	Average Balance			Interest		Average Yield/Rate		Average Balance			Interest		Average Yield/Rate
Interest-earning assets:
Interest-earning balances in other banks	$	727,715		$	8,123	4.48	%	$	581,267		$	6,400	4.47	%
Investment securities		1,408,942			11,648	3.32			1,379,797			11,089	3.26
Loans held for sale		381,531			8,008	8.42			407,953			8,612	8.56
Loans and leases held for investment⁽¹⁾		10,843,303			196,505	7.27			10,388,872			187,004	7.30
Total interest-earning assets		13,361,491			224,284	6.73			12,757,889			213,105	6.77
Less: Allowance for credit losses on loans and leases		(186,022	)						(165,320	)
Noninterest-earning assets		539,485							534,133
Total assets	$	13,714,954						$	13,126,702
Interest-bearing liabilities:
Interest-bearing checking	$	350,978		$	3,969	4.54	%	$	350,491		$	3,929	4.55	%
Savings		6,241,053			56,529	3.63			5,540,147			51,604	3.78
Money market accounts		128,757			93	0.29			127,908			120	0.38
Certificates of deposit		5,392,494			52,789	3.93			5,563,004			55,235	4.03
Total deposits		12,113,282			113,380	3.75			11,581,550			110,888	3.88
Borrowings		109,463			1,683	6.17			111,919			1,685	6.11
Total interest-bearing liabilities		12,222,745			115,063	3.78			11,693,469			112,573	3.90
Noninterest-bearing deposits		375,503							342,482
Noninterest-bearing liabilities		53,717							58,739
Shareholders’ equity		1,058,572							1,027,547
Non-controlling interest		4,417							4,465
Total liabilities and shareholders’ equity	$	13,714,954						$	13,126,702
Net interest income and interest rate spread				$	109,221	2.95	%				$	100,532	2.87	%
Net interest margin						3.28							3.20
Ratio of average interest-earning assets to average interest-bearing liabilities						109.32	%						109.10	%

(1)	Average loan and lease balances include non-accruing loans and leases.

Live Oak Bancshares, Inc.
GAAP to Non-GAAP Reconciliation
(Dollars in thousands)

	As of and for the three months ended
	2Q 2025			1Q 2025			4Q 2024			3Q 2024			2Q 2024
Total shareholders’ equity	$	1,067,265		$	1,031,447		$	1,003,496		$	1,007,756		$	961,049
Less:
Goodwill		1,797			1,797			1,797			1,797			1,797
Other intangible assets		1,491			1,529			1,568			1,606			1,644
Tangible shareholders’ equity (a)	$	1,063,977		$	1,028,121		$	1,000,131		$	1,004,353		$	957,608
Shares outstanding (c)		45,686,081			45,589,633			45,359,425			45,151,691			45,003,856
Total assets	$	13,831,208		$	13,595,704		$	12,943,380		$	12,607,346		$	11,868,570
Less:
Goodwill		1,797			1,797			1,797			1,797			1,797
Other intangible assets		1,491			1,529			1,568			1,606			1,644
Tangible assets (b)	$	13,827,920		$	13,592,378		$	12,940,015		$	12,603,943		$	11,865,129
Tangible shareholders’ equity to tangible assets (a/b)		7.69	%		7.56	%		7.73	%		7.97	%		8.07	%
Tangible book value per share (a/c)	$	23.29		$	22.55		$	22.05		$	22.24		$	21.28
Efficiency ratio:
Noninterest expense (d)	$	89,293		$	84,017		$	81,257		$	77,589		$	77,656
Net interest income		109,221			100,532			97,474			97,000			91,320
Noninterest income		34,526			25,581			30,593			32,932			34,159
Total revenue (e)	$	143,747		$	126,113		$	128,067		$	129,932		$	125,479
Efficiency ratio (d/e)		62.12	%		66.62	%		63.45	%		59.72	%		61.89	%
Pre-provision net revenue (e-d)	$	54,454		$	42,096		$	46,810		$	52,343		$	47,823

This press release presents non-GAAP financial measures. The adjustments to reconcile from the non-GAAP financial measures to the applicable GAAP financial measure are included where applicable in financial results presented in accordance with GAAP. The Company considers these adjustments to be relevant to ongoing operating results. The Company believes that excluding the amounts associated with these adjustments to present the non-GAAP financial measures provides a meaningful base for period-to-period comparisons, which will assist regulators, investors, and analysts in analyzing the operating results or financial position of the Company. The non-GAAP financial measures are used by management to assess the performance of the Company’s business for presentations of Company performance to investors, and for other reasons as may be requested by investors and analysts. The Company further believes that presenting the non-GAAP financial measures will permit investors and analysts to assess the performance of the Company on the same basis as that applied by management. Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although non-GAAP financial measures are frequently used by shareholders to evaluate a company, they have limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP.

The MIL Network –

July 24, 2025

MIL-OSI: reAlpha Announces Repayment in Full of the Outstanding Balance of Streeterville Secured Promissory Note

Source: GlobeNewswire (MIL-OSI)

DUBLIN, Ohio, July 23, 2025 (GLOBE NEWSWIRE) — reAlpha Tech Corp. (Nasdaq: AIRE) (the “Company” or “reAlpha”), an AI-powered real estate technology company, today announced that it has repaid in full the outstanding balance on its secured promissory note with Streeterville Capital, LLC (“Streeterville”).

The secured promissory note, originally issued on August 14, 2024 with a principal balance of $5.45 million and an 8% annual interest rate, was scheduled to mature on February 14, 2026. Over the past year, reAlpha steadily reduced the outstanding balance through partial repayments in cash and equity, then repaid the full outstanding balance on July 23, 2025 using available cash, including proceeds from recent equity offerings.

“The full repayment of our long-term debt marks a pivotal milestone for reAlpha,” said Mike Logozzo, Chief Executive Officer of reAlpha. “Now, we are well-positioned to accelerate our product development and market expansion, as well as pursue strategic acquisitions and partnerships that broaden our AI-driven platform for homebuyers.”

Piyush Phadke, Chief Financial Officer of reAlpha, added, “With the note now fully repaid, we’ve strengthened our balance sheet and simplified our capital structure. We now have greater financial flexibility to support near-term growth initiatives and maintain discipline as we scale operations.”

Following the repayment, reAlpha has no outstanding secured promissory notes or convertible debt instruments, leaving trade payables and subsidiary debt as its only obligations. Streeterville has confirmed in writing that all obligations with respect to the secured promissory note have been fully satisfied and the Company is released from all further obligations.

Further information is set forth in the Current Report on Form 8-K filed by the Company with the U.S. Securities and Exchange Commission (the “SEC”) on July 23, 2025.

About reAlpha Tech Corp.

reAlpha Tech Corp. (Nasdaq: AIRE) is an AI-powered real estate technology company transforming the multi-trillion-dollar U.S. real estate services market. reAlpha is developing an end-to-end platform that streamlines real estate transactions through integrated brokerage, mortgage, and title services. With a strategic, acquisition-driven growth model and proprietary AI infrastructure, reAlpha is building a vertically integrated ecosystem designed to deliver a simpler, smarter, and more affordable path to homeownership. For more information, visit www.realpha.com.

Forward-Looking Statements

The information in this press release includes “forward-looking statements.” Any statements other than statements of historical fact contained herein, including statements by our Chief Executive Officer, Mike Logozzo and Chief Financial Officer, Piyush Phadke, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “could”, “might”, “plan”, “possible”, “project”, “strive”, “budget”, “forecast”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology. Factors that may cause actual results to differ materially from current expectations include, but are not limited to: reAlpha’s ability to regain and sustain compliance with the Nasdaq Capital Market’s continued listing standards and remain listed on the Nasdaq Capital Market; reAlpha’s ability to pay contractual obligations; reAlpha’s liquidity, operating performance, cash flow and ability to secure adequate financing; reAlpha’s limited operating history and that reAlpha has not yet fully developed its AI-based technologies; whether reAlpha’s technology and products will be accepted and adopted by its customers and intended users; reAlpha’s ability to commercialize its developing AI-based technologies; reAlpha’s ability to successfully enter new geographic markets; reAlpha’s ability to integrate the business of its acquired companies into its existing business and the anticipated demand for such acquired companies’ services; reAlpha’s ability to scale its operational capabilities to expand into additional geographic markets and nationally; the potential loss of key employees of reAlpha and of its subsidiaries; the outcome of certain outstanding legal proceedings against reAlpha; reAlpha’s ability to obtain, and maintain, the required licenses to operate in the U.S. states in which it, or its subsidiaries, operate in, or intend to operate in; reAlpha’s ability to successfully identify and acquire companies that are complementary to its business model; the inability to maintain and strengthen reAlpha’s brand and reputation; any accidents or incidents involving cybersecurity breaches and incidents; the inability to accurately forecast demand for AI-based real estate-focused products; the inability to execute business objectives and growth strategies successfully or sustain reAlpha’s growth; the inability of reAlpha’s customers to pay for reAlpha’s services; the inability of reAlpha to obtain additional financing or access the capital markets to fund its ongoing operations on acceptable terms and conditions; the outcome of any legal proceedings that might be instituted against reAlpha; changes in applicable laws or regulations, and the impact of the regulatory environment and complexities with compliance related to such environment; and other risks and uncertainties indicated in reAlpha’s SEC filings. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking statements. Although reAlpha believes that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. reAlpha’s future results, level of activity, performance or achievements may differ materially from those contemplated, expressed or implied by the forward-looking statements, and there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking statements. For more information about the factors that could cause such differences, please refer to reAlpha’s filings with the SEC. Readers are cautioned not to put undue reliance on forward-looking statements, and reAlpha does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Media Contact:
Cristol Rippe, Chief Marketing Officer
cristol@realpha.com

Investor Relations Contact:
Adele Carey, VP of Investor Relations
investorrelations@realpha.com

The MIL Network –

July 24, 2025

MIL-OSI Security: Defense News in Brief: Holloman AFB medics enhance fitness and expeditionary capabilities in Medic-X exercise

Source: United States Airforce

HOLLOMAN AIR FORCE BASE, N.M. (AFNS) — The medics of the 49th Medical Group added a new layer of depth to their monthly training day by incorporating field tactics and wartime medical practice in a Medic-X exercise on July 16, 2025.

The training consisted of 16 stations and substations that ranged from spinal immobilization to infection control to post-mortem protocol, all scenarios that are critically important for a medic to know but unlikely to experience in a clinical setting such as the clinic at Holloman Air Force Base.

“Gone are the days when a medic would only be expected to perform duties within their specific specialty – our medics need to be versatile and better equipped to provide speedy and effective support to the warfighter,” said U.S. Air Force Chief Master Sgt. Jason Estrada, 49th MDG senior enlisted leader. “That versatile mindset is what our medical group education and training team has used to shape our Medic-X and other hands-on training.”

The Air Force is one of the most lethal parts of the Department of Defense, and the flipside of lethality is the medical skill needed to keep the warfighters in the fight downrange. This more hands-on approach to training was brought about after an education and training member went through the intense two-week Tactical Combat Casualty Care Tier 3 course and realized how important it would be to bring lessons learned to the entire medical group.

“We’re focusing on operating in an austere environment where it’s not going to be calm, it’s not going to be like day-to-day clinic operations,” said U.S. Air Force Capt. Natasha Lindbloom, 49th MDG education and training flight commander. “You could tell somebody to recite the alphabet, but if it’s stressful, they’re going to mess it up. We want our people to be able to do this until they can perform these simple tasks under pressure.”

Although we cannot mirror a battlefield environment, we can put our medics in situations where critical thinking and a sense of urgency fuels their training to ‘kick in.’Chief Master Sgt. Jason Estrada, 49th MDG senior enlisted leader

Coupled with the chance to exercise underutilized but combat-effective skills, the exercise served to underscore the importance of medics who are fit to fight and capable of doing what’s needed when it’s needed in a stressful and possibly deadly environment. A low-crawl obstacle course was put together using furniture and gear inside the clinic, streamlining the flow of training and simulating a more realistic urban environment.

“Although we cannot mirror a battlefield environment, we can put our medics in situations where critical thinking and a sense of urgency fuels their training to ‘kick in,’” Estrada said. “Since so few of our current medics possess the real-world experience, it’s our training team that brings these scenarios to life with realism and pressure-induced decision making, which results in the desired sets & reps our teams need to build muscle memory.

Constant Improvement

Medic-X training exercises are not a new concept for medical personnel; in fact, Medic-X was rolled out across the enterprise two years ago and has provided quarterly training objectives to all Defense Health Agency members. The ever-changing global environment and nature of future warfare were other driving factors in the 49th MDG collectively getting ahead of the curve and practicing these critical wartime skills on top of staying adept at their daily clinical duties.

“I’m hoping this gives people the mindset of ‘Hey, I know I’m in this job right now and I’m comfortable, but I’m not always going to be comfortable if we’re put in these situations in real life,’” said U.S. Air Force Senior Airman Claire Pruitt, 49th MDG education and training program manager.

All Airmen take TCCC Tier-1 training that covers the basics of what was formerly known as self-aid and buddy care, while all medics are required to take Tier-2 training to gain more expertise in the ability to treat wounds sustained in combat. Tier-3 training is optional but available for all medics and provides a realistic, grueling experience of austere field conditions and the physical limits that medics can be pushed to in wartime.

“There’s going to be a bit of a shock factor for people working in a clinic, where even though we’re incredibly busy, a lot of it is just administrative work instead of intense, hands-on medical practice,” Pruitt said. “I’m trying to integrate some of the things that they did with us in a physical aspect at the Tier 3 training so that these Airmen have more experience and understand that if they have to do this in real life tomorrow, it’s not going to be easy. They’ll have to think about getting the patient out of the combat zone, treating their wounds, stopping the bleeding, loading them onto a helicopter, etc.”

The success of the first iteration of integrated field work with Medic-X has laid the groundwork for an ever-improving series of exercises to better prepare Team Holloman’s medics for unpredictable and challenging fights of future conflict.

“Today’s potential adversaries are better equipped and more prepared than any potential foe has ever been,” Estrada said. “For that reason, every uniform-wearing member of our military needs to understand that he/she is one bad day, one ill-guided decision, one perceived threatful action away from finding themselves, in support of our country, inside a combat environment where the old rules may not apply.”

MIL Security OSI –

July 24, 2025

MIL-OSI USA: WHAT THEY ARE SAYING: U.S.-Indonesia Trade Deal Is Another America First Win

US Senate News:

Source: US Whitehouse
President Donald J. Trump’s landmark reciprocal trade agreement with Indonesia is another critical step forward in the Trump Administration’s relentless pursuit of trade policy that finally puts America First. The deal eliminates ~99% of tariff barriers for a full range of U.S. industrial, food, and agricultural exports, unlocks new market access, and breaks down non-tariff barriers — and represents the latest victory for American workers, farmers, and manufacturers.
The trade deal was immediately hailed across American industry:
American Iron and Steel Institute President and CEO Kevin Dempsey: “AISI is encouraged by today’s announcement of a framework for negotiating an agreement with Indonesia to remove Indonesia’s existing export restrictions on critical minerals, such as nickel, which is critical to stainless steel production. Indonesia’s existing export ban and other restrictions on nickel, together with its close ties to Chinese steel producers that have invested in that country as a result of China’s Belt and Road Initiative, have resulted in significant distortions in the global market for nickel to the detriment of steel producers in the United States. We look forward to working with USTR to address the Indonesian nickel export restrictions and other trade-distorting policies as these negotiations move forward.”
Association for Competitive Technology President Morgan Reed: “This is another win for U.S. small tech developers. For years the App Association and our members have raised concerns with the U.S. Trade Representative regarding Indonesia’s inclusion of software and other digital goods in their tariff system, among several other digital trade barriers. We thank USTR and the Administration for their tireless work on behalf of small tech companies and look forward to our continued work strengthening American competitiveness globally. Further, we commend the Indonesian government for joining the United States in committing to support a World Trade Organization agreement that ensures countries will not apply taxes or customs duties to digital service transmissions.”
Business Software Alliance SVP Aaron Cooper: “The US-Indonesia trade agreement is a breakthrough in digital trade policy. The agreement’s provisions to eliminate tariffs on intangible digital products, guaranteeing cross-border data transfers, and supporting the permanent extension of the moratorium on digital customs duties expands access to digital services and supports the adoption of technology. This agreement sends a strong signal to the global economy and many industries that rely on open and secure digital trade, and reflects key reforms that have been core BSA priorities for nearly a decade.”
American Soybean Association President Caleb Ragland: “We appreciate President Trump and his administration’s efforts in maintaining market access for U.S. soybeans into Indonesia, and the commitment from USTR to address non-tariff barriers in that market. We look forward to future deals like this that reduce tariffs and ensure continued and increased market access for U.S. agriculture.”
Computer and Communications Industry Association VP Jonathan McHale: “The announced Framework agreement for addressing Indonesia’s many trade barriers, including tariff regimes targeting digital products, restrictions on cross-border data flows, and local content requirements for communications devices, is an important and encouraging step in reforming what has long been one of the most challenging markets for U.S. suppliers. We look forward to a binding agreement addressing not only these restrictions, but a path to resolving all outstanding barriers that remain in this important market.”
Consortium for Common Food Names Executive Director Jaime Castaneda: “The prospect of having Indonesia commit to a more transparent and balanced approach to GIs would be a meaningful advance in the global fight to preserve the use of common food names like parmesan and feta. We commend the U.S. negotiators for prioritizing this issue, particularly at a time when European Union is attempting to expand their GI abuse in growing dairy markets and shut out the United States. We will work diligently with the U.S. government to hold Indonesia accountable to their commitments on common names.”
International Dairy Foods Association SVP Becky Rasdall Vargas: “We could not be more enthusiastic and energized about today’s announcement for improved access for U.S. dairy exports to Indonesia. Indonesia is an important trading partner in a region that is critical to U.S. dairy exports, and growing. Today’s announcement represents the largest improvement of access U.S. dairy exporters have seen in the region in over a decade and will be a timely step towards keeping U.S. dairy exporters globally competitive. We express our sincere appreciation to the Administration and the negotiators for achieving this positive outcome for U.S. dairy.”
National Grain and Feed Association President and CEO Mike Seyfert: “America’s grain and feed industry appreciates President Trump and his negotiating team for advancing a bold and strategic trade framework with Indonesia that delivers meaningful wins for U.S agriculture. This agreement opens the door to billions in new exports – including soybeans, wheat, and other key commodities – while eliminating tariffs and cutting red tape that have long held back U.S. producers. We look forward to swift finalization and implementation of this deal and stand ready to work with the Trump Administration open new markets and tear down unfair trade barriers.”
National Milk Producers Federation President and CEO Gregg Doud: “This looks like it will be a significant win for U.S. dairy. We commend the Trump Administration for securing an agreement that should deliver real benefits for our dairy farmers. We are pleased to hear this framework removes roadblocks to trade and will help grow dairy sales in one of the world’s most populous markets. NMPF looks forward to reviewing the details of the agreement and working with the Administration to ensure Indonesia upholds its end of the bargain.”
National Oilseed Processors Association President and CEO Devin Mogler: “We commend the Trump Administration for prioritizing U.S. farmers in this trade deal with Indonesia, and specifically for including soybean meal purchases. NOPA members have invested over $6 billion to expand U.S. soybean crushing capacity by over 25% since 2023 levels to meet growing demand for food, feed and biofuel use, adding value to the crops our great U.S. farmers produce. Ensuring we have access to growing soybean meal markets like Indonesia ensures our farmers remain competitive relative to global competitors.”
Renewable Fuels Association President and CEO Geoff Cooper: “We’re grateful to President Trump and his team for ensuring U.S. agriculture and renewable fuels are prominently included in these framework agreements. These deals will ultimately help open important Asian markets and allow greater access for American farm products, renewable fuels, and co-products like distillers grains. This administration clearly understands the leading role American farmers and renewable fuel producers can play when it comes to feeding and fueling the world, and we salute President Trump’s efforts to secure fair and reciprocal agreements around the globe. Breaking down barriers to fair trade strengthens our rural economy and the United States as a whole.”
The Meat Institute: “The Meat Institute’s members celebrate @realdonaldtrump and @USTradeRep’s work on a deal with Indonesia opening up this important market for meat & poultry. We look forward to seeing the details of the deal & to continued efforts to remove remaining barriers to trade in other SE Asian markets.”
U.S. Dairy Export Council President and CEO Krysta Harden: “Yesterday’s announcement is an important step forward in advancing opportunities for U.S. dairy exporters. This deal is poised to strengthen our long-term partnership with Indonesia while giving U.S. dairy companies a better shot at competing fairly. While verification that Indonesia honors its commitments will be necessary, the removal of both tariff and nontariff barriers is precisely what our industry needs to create new momentum for U.S. dairy exports and deeper collaboration with a key Southeast Asian partner.”
U.S. Grains Council President and CEO Ryan LeGrand: “The U.S. Grains Council commends the Trump Administration on its historic trade deal with Indonesia, that will enhance trade for both countries and places a zero tariff on the products the Council represents. In the 2023-24 marketing year, Indonesia was the fourth largest importer for U.S. distillers dried grains with solubles at 1,024,000 metric tons. That translates into a nearly $299 million market, and we hope the deal announced today will not only help see those numbers increase but open doors wider to the full range of products we have to offer.”
U.S. Meat Export Federation President and CEO Dan Halstrom: “USMEF thanks USTR for its tireless efforts to negotiate a meaningful agreement with Indonesia, tackling many challenging issues. Indonesia is a market with incredible potential, in which the opportunity for U.S. beef is estimated at $250 million annually. But today, exports are minimal due to numerous trade barriers. We are encouraged to see that the highlights detailed in the U.S.-Indonesia joint statement include resolving key issues such as import licensing, the commodity balance policy, and Indonesia’s onerous plant-by-plant approval process. For both U.S. beef and U.S. pork, these longstanding restrictions have limited exports to Indonesia. Indonesian importers and consumers are demanding U.S. red meat and we look forward to the swift conclusion of these negotiations and expanded export opportunities.”
U.S. Wheat Associates President and CEO Mike Spier: “We are excited and grateful to track this wide-reaching government commitment that includes the agreement signed earlier this month between Indonesian flour millers and the U.S. wheat industry. We thank the Trump Administration, the U.S. Trade Representative and the U.S. Department of Agriculture’s Foreign Agricultural Service (USDA-FAS) for their continued work on behalf of American wheat farmers.”

MIL OSI USA News –

July 24, 2025

MIL-OSI: Silvaco Announces Date of Second Quarter 2025 Financial Results Conference Call

Source: GlobeNewswire (MIL-OSI)

SANTA CLARA, Calif., July 23, 2025 (GLOBE NEWSWIRE) — Silvaco Group, Inc. (Nasdaq: SVCO, “Silvaco”), a provider of TCAD, EDA software, and SIP solutions that enable innovative semiconductor design and digital twin modeling through AI software and automation, will release its financial results for the second quarter ended June 30, 2025, after the market close on Wednesday, August 6, 2025. The company will host a conference call at 5:00 p.m. Eastern time to discuss its second quarter 2025 results and full year 2025 outlook.

A press release highlighting the Company’s results along with supplemental financial results will be available at https://investors.silvaco.com/ along with an earnings presentation to accompany management’s prepared remarks. An archived replay of the conference call will be available on this website for a limited time after the call. Participants who want to join the call and ask a question may register for the call here to receive the dial-in numbers and unique PIN.

Date: Wednesday, August 6, 2025
Time: 5:00 p.m. Eastern time
Webcast: Here (live and replay)

About Silvaco
Silvaco is a provider of TCAD, EDA software, and SIP solutions that enable semiconductor design and AI through software and innovation. Silvaco’s solutions are used for process and device development across display, power devices, automotive, memory, high-performance compute, foundries, photonics, internet of things, and 5G/6G mobile markets for complex SoC design. Silvaco is headquartered in Santa Clara, California, and has a global presence with offices located in North America, Europe, Brazil, China, Japan, Korea, Singapore, and Taiwan.

Safe Harbor Statement
This press release contains forward-looking statements based on Silvaco Group, Inc.’s current expectations. The words “believe”, “estimate”, “expect”, “intend”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Silvaco Group, Inc. are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silvaco Group, Inc. and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.

Investor Contact:
Greg McNiff
investors@silvaco.com

Media Contact:
Tiffany Behany
press@silvaco.com

The MIL Network –

July 24, 2025

MIL-OSI: Univest Financial Corporation Reports Second Quarter Results

Source: GlobeNewswire (MIL-OSI)

SOUDERTON, Pa., July 23, 2025 (GLOBE NEWSWIRE) — Univest Financial Corporation (“Univest” or the “Corporation”) (NASDAQ: UVSP), parent company of Univest Bank and Trust Co. (the “Bank”) and its insurance, investments and equipment financing subsidiaries, announced net income for the quarter ended June 30, 2025 of $20.0 million, or $0.69 diluted earnings per share, compared to net income of $18.1 million, or $0.62 diluted earnings per share, for the quarter ended June 30, 2024.

Loans
Gross loans and leases decreased $31.9 million, or 0.5% (2.0% annualized), from March 31, 2025 and $25.4 million, or 0.4% (0.8% annualized), from December 31, 2024 primarily due to decreases in commercial real estate, residential mortgage loans and lease financings, partially offset by increases in commercial, construction and home equity loans. Gross loans and leases increased $116.3 million, or 1.7%, from June 30, 2024, primarily due to increases in commercial real estate, residential mortgage and home equity loans, partially offset by decreases in commercial and construction loans and lease financings.

Deposits and Liquidity
Total deposits decreased $75.8 million, or 1.1% (4.4% annualized), from March 31, 2025, primarily due to seasonal decreases in public funds deposits and decreases in consumer and brokered deposits, partially offset by an increase in commercial deposits. Excluding decreases of $105.9 million in seasonal public funds deposits and $47.5 million in brokered deposits, deposits increased by $77.5 million during the quarter. Total deposits decreased $176.6 million, or 2.6% (5.2% annualized), from December 31, 2024, due to decreases in consumer and public funds deposits, partially offset by increases in commercial and brokered deposits. Total deposits increased $87.3 million, or 1.3%, from June 30, 2024, due to increases in commercial and public funds deposits, partially offset by decreases in consumer and brokered deposits.

Noninterest-bearing deposits totaled $1.5 billion and represented 22.2% of total deposits at June 30, 2025, compared to $1.4 billion representing 21.5% of total deposits at March 31, 2025. Unprotected deposits, which excludes insured, internal, and collateralized deposit accounts, totaled $1.5 billion at June 30, 2025 and March 31, 2025. This represented 23.0% of total deposits at June 30, 2025, compared to 21.9% at March 31, 2025.

As of June 30, 2025, the Corporation and its subsidiaries reported cash and cash equivalents totaling $160.4 million and had committed borrowing capacity of $3.6 billion, of which $2.3 billion was available. The Corporation and its subsidiaries also maintained uncommitted funding sources from correspondent banks of $469.0 million at June 30, 2025. Future availability under these uncommitted funding sources is subject to the prerogatives of the granting banks and may be withdrawn at will.

Net Interest Income and Margin
Net interest income of $59.5 million for the second quarter of 2025 increased $8.5 million, or 16.7%, from the second quarter of 2024 and $2.8 million, or 4.9%, from the first quarter of 2025. The increase in net interest income for the second quarter of 2025 compared to the second quarter of 2024 was driven by higher average balances of loans and higher yields on interest earning assets, as well as a reduction in our overall cost of funds. The increase in net interest income for the second quarter of 2025 compared to the first quarter of 2025 was primarily driven by higher yields on interest earning assets and lower average balances of interest-bearing liabilities and related costs.

Net interest margin, on a tax-equivalent basis, was 3.20% for the second quarter of 2025, compared to 3.09% for the first quarter of 2025 and 2.84% for the second quarter of 2024. Excess liquidity reduced net interest margin by approximately four basis points for the quarter ended June 30, 2025 compared to approximately three basis points for the quarter ended March 31, 2025 and approximately two basis points for the quarter ended June 30, 2024. Excluding the impact of excess liquidity, the net interest margin, on a tax-equivalent basis, would have been 3.24% for the quarter ended June 30, 2025 compared to 3.12% for the first quarter of 2025 and 2.86% for the second quarter of 2024.

Noninterest Income
Noninterest income for the quarter ended June 30, 2025 was $21.5 million, an increase of $521 thousand, or 2.5%, from the comparable period in the prior year.

Other income increased $491 thousand, or 65.9%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to an increase of $299 thousand in gains on sale of Small Business Administration loans.

Service charges on deposit accounts increased $276 thousand, or 13.9%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to an increase in treasury management income.

Investment advisory commission and fee income increased $222 thousand, or 4.2%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to new customer relationships and appreciation of assets under management and supervision.

Net gain on mortgage banking activities decreased $729 thousand, or 42.6%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, primarily due to decreased salable volume.

Noninterest Expense
Noninterest expense for the quarter ended June 30, 2025 was $50.3 million, an increase of $1.6 million, or 3.3%, from the comparable period in the prior year.

Salaries, benefits and commissions increased $1.3 million, or 4.5%, for the quarter ended June 30, 2025 compared to the comparable period in the prior year, due to increases in salary and medical claims expense. Additionally, variable compensation increased due to increased profitability.

Tax Provision
The effective income tax rate was 20.1% for the quarter ended June 30, 2025, compared to an effective tax rate of 19.9% for the quarter ended June 30, 2024. The effective tax rates for the three months ended June 30, 2025 and 2024 were favorably impacted by proceeds of BOLI death benefits received in both periods. Excluding the BOLI death benefits, the effective tax rate was 20.2% for the three months ended June 30, 2025 compared to 20.0% for the three months ended June 30, 2024.

Asset Quality and Provision for Credit Losses
Nonperforming assets totaled $50.6 million at June 30, 2025, $34.0 million at March 31, 2025, and $36.6 million at June 30, 2024. During the quarter, a $23.7 million commercial loan relationship was placed on nonaccrual status due to, among other things, suspected fraud. Subsequent to the relationship being placed on nonaccrual status, a $7.3 million charge-off was recognized during the quarter. The remaining $16.4 million carrying value is supported by the appraised value of real estate collateral.

Net loan and lease charge-offs were $7.8 million for the three months ended June 30, 2025 compared to $1.7 million and $809 thousand for the three months ended March 31, 2025 and June 30, 2024, respectively. The increase in charge-offs for the quarter compared to the prior periods was due to the previously discussed $7.3 million charge-off associated with a nonaccrual commercial loan relationship.

The provision for credit losses was $5.7 million for the three months ended June 30, 2025 compared to $2.3 million and $707 thousand for the three months ended March 31, 2025 and June 30, 2024, respectively. The allowance for credit losses on loans and leases as a percentage of loans and leases held for investment was 1.28% at June 30, 2025, March 31, 2025, and June 30, 2024.

Dividend and Share Repurchases
On July 23, 2025, Univest declared a quarterly cash dividend of $0.22 per share to be paid on August 20, 2025 to shareholders of record as of August 6, 2025. During the quarter ended June 30, 2025, the Corporation repurchased 172,757 shares of common stock at an average price of $28.45 per share. Including brokerage fees and excise tax, the average price per share was $28.77. As of June 30, 2025, 1,005,637 shares are available for repurchase under the Share Repurchase Plan.

Conference Call
Univest will host a conference call to discuss second quarter 2025 results on Thursday, July 24, 2025 at 9:00 a.m. EDT. Participants may preregister at https://www.netroadshow.com/events/login?show=d55d5140&confId=85192. The general public can access the call by dialing 1-833-470-1428; using Access Code 747843. A replay of the conference call will be available through July 31, 2025 by dialing 1-866-813-9403; using Access Code 563521.

About Univest Financial Corporation
Univest Financial Corporation (UVSP), including its wholly-owned subsidiary Univest Bank and Trust Co., Member FDIC, has approximately $7.9 billion in assets and $5.4 billion in assets under management and supervision through its Wealth Management lines of business at June 30, 2025. Headquartered in Souderton, Pa. and founded in 1876, the Corporation and its subsidiaries provide a full range of financial solutions for individuals, businesses, municipalities and nonprofit organizations primarily in the Mid-Atlantic Region. Univest delivers these services through a network of more than 50 offices and online at www.univest.net.

This press release and the reports Univest files with the Securities and Exchange Commission often contain “forward-looking statements” relating to trends or factors affecting the financial services industry and, specifically, the financial condition and results of operations, business, prospects and strategies of Univest. These forward-looking statements involve certain risks and uncertainties in that there are a number of important factors that could cause Univest’s future financial condition, results of operations, business, prospects or strategies to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: (1) competition and demand for financial services in our market area; (2) inflation and/or changes in interest rates, which may adversely impact our margins and yields, reduce the fair value of our financial instruments, reduce our loan originations and/or lead to higher operating costs and higher costs we pay to retain and attract deposits; (3) changes in asset quality, prepayment speeds, loan sale volumes, charge-offs and/or credit loss provisions; (4) fluctuations in real estate values and both residential and commercial real estate market conditions; (5) changes in liquidity, including the size and composition of our deposit portfolio and the percentage of uninsured deposits in the portfolio; (6) our ability to access cost-effective funding; (7) changes in economic conditions nationally and in our market, including potential recessionary conditions and the levels of unemployment in our market area; (8) changes in the economic assumptions or methodology used to calculate our allowance for credit losses; (9) legislative, regulatory, accounting or tax changes; (10) monetary and fiscal policies of the U.S. government, including the policies of the Board of Governors of the Federal Reserve System; (11) the imposition of tariffs or other domestic or international governmental policies and retaliatory responses; (12) the failure to maintain current technologies and to successfully implement future information technology enhancements; (13) technological issues that may adversely affect our operations or those of our customers; (14) a failure or breach in our operational or security systems or infrastructure, including cyberattacks; (15) changes in the securities markets; (16) the current or anticipated impact of military conflict, terrorism or other geopolitical events; (17) our ability to enter into new markets successfully and capitalize on growth opportunities; (18) changes in investor sentiment or consumer spending or savings behavior; and/or (19) risk factors mentioned in the reports and registration statements Univest files with the Securities and Exchange Commission.

(UVSP – ER)


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
June 30, 2025
(Dollars in thousands)

Balance Sheet (Period End)	06/30/25			03/31/25			12/31/24			09/30/24			06/30/24
ASSETS
Cash and due from banks	$	76,624		$	73,319		$	75,998		$	78,346		$	66,808
Interest-earning deposits with other banks		83,741			95,815			252,846			426,354			124,103
Cash and cash equivalents		160,365			169,134			328,844			504,700			190,911
Investment securities held-to-maturity		128,455			130,889			134,111			137,681			140,112
Investment securities available for sale, net of allowance for credit losses		366,421			364,503			357,361			354,100			342,776
Investments in equity securities		1,801			1,667			2,506			2,406			2,995
Federal Home Loan Bank, Federal Reserve Bank and other stock, at cost		36,482			35,732			38,980			40,235			37,438
Loans held for sale		17,774			13,150			16,653			17,131			28,176
Loans and leases held for investment		6,801,185			6,833,037			6,826,583			6,730,734			6,684,837
Less: Allowance for credit losses, loans and leases		(86,989	)		(87,790	)		(87,091	)		(86,041	)		(85,745	)
Net loans and leases held for investment		6,714,196			6,745,247			6,739,492			6,644,693			6,599,092
Premises and equipment, net		47,140			47,175			46,671			47,411			48,174
Operating lease right-of-use assets		27,278			27,182			28,531			29,260			29,985
Goodwill		175,510			175,510			175,510			175,510			175,510
Other intangibles, net of accumulated amortization		7,967			8,061			8,309			7,158			7,701
Bank owned life insurance		140,086			139,482			139,351			138,744			137,823
Accrued interest and other assets		115,581			117,435			112,098			106,708			114,753
Total assets	$	7,939,056		$	7,975,167		$	8,128,417		$	8,205,737		$	7,855,446

LIABILITIES
Noninterest-bearing deposits	$	1,461,189		$	1,433,995		$	1,414,635		$	1,323,953		$	1,397,308
Interest-bearing deposits:		5,121,471			5,224,503			5,344,624			5,530,195			5,098,014
Total deposits		6,582,660			6,658,498			6,759,259			6,854,148			6,495,322
Short-term borrowings		6,271			4,031			11,181			8,256			11,781
Long-term debt		200,000			175,000			225,000			225,000			250,000
Subordinated notes		149,511			149,386			149,261			149,136			149,011
Operating lease liabilities		30,106			30,062			31,485			32,246			33,015
Accrued expenses and other liabilities		53,775			54,718			64,930			59,880			62,180
Total liabilities		7,022,323			7,071,695			7,241,116			7,328,666			7,001,309

SHAREHOLDERS’ EQUITY
Common stock, $5 par value: 48,000,000 shares authorized and 31,556,799 shares issued		157,784			157,784			157,784			157,784			157,784
Additional paid-in capital		301,640			300,634			302,829			301,262			300,166
Retained earnings		555,403			541,776			525,780			512,938			500,482
Accumulated other comprehensive loss, net of tax benefit		(34,969	)		(37,922	)		(43,992	)		(41,623	)		(54,124	)
Treasury stock, at cost		(63,125	)		(58,800	)		(55,100	)		(53,290	)		(50,171	)
Total shareholders’ equity		916,733			903,472			887,301			877,071			854,137
Total liabilities and shareholders’ equity	$	7,939,056		$	7,975,167		$	8,128,417		$	8,205,737		$	7,855,446


	For the three months ended,															For the six months ended,
Balance Sheet (Average)	06/30/25			03/31/25			12/31/24			09/30/24			06/30/24			06/30/25		06/30/24
Assets		7,979,475		$	7,981,043		$	8,163,347		$	8,005,265		$	7,721,540		$	7,980,254	$	7,709,058
Investment securities, net of allowance for credit losses		497,214			500,078			500,748			493,334			493,140			498,638		497,061
Loans and leases, gross		6,846,938			6,856,503			6,758,649			6,730,791			6,640,536			6,851,694		6,608,950
Deposits		6,633,250			6,617,653			6,804,483			6,641,324			6,353,752			6,625,494		6,328,804
Shareholders’ equity		908,536			896,811			880,237			864,406			844,572			902,706		843,559

Univest Financial Corporation
Consolidated Summary of Loans by Type and Asset Quality Data (Unaudited)
June 30, 2025
(Dollars in thousands)

Summary of Major Loan and Lease Categories (Period End)	06/30/25			03/31/25			12/31/24			09/30/24			06/30/24
Commercial, financial and agricultural	$	1,052,246		$	1,034,361		$	1,037,835		$	1,044,043		$	1,055,332
Real estate-commercial		3,485,615			3,546,402			3,530,451			3,442,083			3,373,889
Real estate-construction		302,424			281,785			274,483			285,616			313,229
Real estate-residential secured for business purpose		535,210			536,082			536,095			530,674			532,628
Real estate-residential secured for personal purpose		984,166			992,767			994,972			969,562			952,665
Real estate-home equity secured for personal purpose		195,014			189,119			186,836			182,901			179,150
Loans to individuals		14,069			16,930			21,250			26,794			26,430
Lease financings		232,441			235,591			244,661			249,061			251,514
Total loans and leases held for investment, net of deferred income		6,801,185			6,833,037			6,826,583			6,730,734			6,684,837
Less: Allowance for credit losses, loans and leases		(86,989	)		(87,790	)		(87,091	)		(86,041	)		(85,745	)
Net loans and leases held for investment	$	6,714,196		$	6,745,247		$	6,739,492		$	6,644,693		$	6,599,092


Asset Quality Data (Period End)	06/30/25			03/31/25			12/31/24			09/30/24			06/30/24
Nonaccrual loans and leases, including nonaccrual loans held for sale	$	27,909		$	11,126		$	12,667		$	15,319		$	16,200
Accruing loans and leases 90 days or more past due		125			322			321			310			205
Total nonperforming loans and leases		28,034			11,448			12,988			15,629			16,405
Other real estate owned		22,471			22,433			20,141			20,915			20,007
Repossessed assets		80			79			76			79			149
Total nonperforming assets	$	50,585		$	33,960		$	33,205		$	36,623		$	36,561
Nonaccrual loans and leases / Loans and leases held for investment		0.41	%		0.16	%		0.19	%		0.23	%		0.24	%
Nonperforming loans and leases / Loans and leases held for investment		0.41	%		0.17	%		0.19	%		0.23	%		0.25	%
Nonperforming assets / Total assets		0.64	%		0.43	%		0.41	%		0.45	%		0.47	%

Allowance for credit losses, loans and leases	$	86,989		$	87,790		$	87,091		$	86,041		$	85,745
Allowance for credit losses, loans and leases / Loans and leases held for investment		1.28	%		1.28	%		1.28	%		1.28	%		1.28	%
Allowance for credit losses, loans and leases / Nonaccrual loans and leases		311.69	%		789.05	%		687.54	%		561.66	%		529.29	%
Allowance for credit losses, loans and leases / Nonperforming loans and leases		310.30	%		766.86	%		670.55	%		550.52	%		522.68	%


	For the three months ended,															For the six months ended,
	06/30/25			03/31/25			12/31/24			09/30/24			06/30/24			06/30/25			06/30/24
Net loan and lease charge-offs	$	7,807		$	1,686		$	767		$	820		$	809		$	9,493		$	2,215
Net loan and lease charge-offs (annualized)/Average loans and leases		0.46	%		0.10	%		0.05	%		0.05	%		0.05	%		0.28	%		0.07	%

Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
June 30, 2025
(Dollars in thousands, except per share data)
	For the three months ended,										For the six months ended,
For the period:	06/30/25		03/31/25		12/31/24		09/30/24		06/30/24		06/30/25		06/30/24
Interest income	$	105,706	$	103,416	$	107,476	$	106,438	$	99,832	$	209,122	$	198,441
Interest expense		46,165		46,635		52,004		53,234		48,805		92,800		95,947
Net interest income		59,541		56,781		55,472		53,204		51,027		116,322		102,494
Provision for credit losses		5,694		2,311		2,380		1,414		707		8,005		2,139
Net interest income after provision for credit losses		53,847		54,470		53,092		51,790		50,320		108,317		100,355
Noninterest income:
Trust fee income		2,146		2,161		2,265		2,110		2,008		4,307		4,116
Service charges on deposit accounts		2,258		2,194		2,192		2,037		1,982		4,452		3,853
Investment advisory commission and fee income		5,460		5,613		5,457		5,319		5,238		11,073		10,432
Insurance commission and fee income		5,261		6,889		4,743		5,238		5,167		12,150		12,368
Other service fee income		3,147		2,707		3,473		1,815		3,044		5,854		9,459
Bank owned life insurance income		1,012		1,959		1,012		921		1,086		2,971		1,928
Net gain on sales of investment securities		–		–		–		18		–		–		–
Net gain on mortgage banking activities		981		647		1,320		1,296		1,710		1,628		2,649
Other income		1,236		245		868		1,396		745		1,481		1,770
Total noninterest income		21,501		22,415		21,330		20,150		20,980		43,916		46,575
Noninterest expense:
Salaries, benefits and commissions		31,536		30,826		31,518		30,702		30,187		62,362		61,525
Net occupancy		2,739		2,853		2,751		2,723		2,679		5,592		5,551
Equipment		1,043		1,122		1,147		1,107		1,088		2,165		2,199
Data processing		4,408		4,364		4,146		4,154		4,161		8,772		8,656
Professional fees		1,597		1,797		1,669		1,579		1,466		3,394		3,154
Marketing and advertising		498		353		552		490		715		851		1,131
Deposit insurance premiums		1,074		1,151		1,102		1,097		1,098		2,225		2,233
Intangible expenses		131		130		155		164		188		261		375
Other expense		7,306		6,732		7,618		6,536		7,126		14,038		13,958
Total noninterest expense		50,332		49,328		50,658		48,552		48,708		99,660		98,782
Income before taxes		25,016		27,557		23,764		23,388		22,592		52,573		48,148
Income tax expense		5,038		5,162		4,823		4,810		4,485		10,200		9,736
Net income	$	19,978	$	22,395	$	18,941	$	18,578	$	18,107	$	42,373	$	38,412
Net income per share:
Basic	$	0.69	$	0.77	$	0.65	$	0.64	$	0.62	$	1.46	$	1.31
Diluted	$	0.69	$	0.77	$	0.65	$	0.63	$	0.62	$	1.45	$	1.30
Dividends declared per share	$	0.22	$	0.21	$	0.21	$	0.21	$	0.21	$	0.43	$	0.42
Weighted average shares outstanding		28,859,348		29,000,567		29,070,039		29,132,948		29,246,977		28,929,123		29,330,488
Period end shares outstanding		28,810,805		28,962,648		29,045,877		29,081,108		29,190,640		28,810,805		29,190,640


Univest Financial Corporation
Consolidated Selected Financial Data (Unaudited)
June 30, 2025



	For the three months ended,															For the six months ended,
Profitability Ratios (annualized)	06/30/25			03/31/25			12/31/24			09/30/24			06/30/24			06/30/25			06/30/24

Return on average assets		1.00	%		1.14	%		0.92	%		0.92	%		0.94	%		1.07	%		1.00	%
Return on average shareholders’ equity		8.82	%		10.13	%		8.56	%		8.55	%		8.62	%		9.47	%		9.16	%
Return on average tangible common equity (1)(3)		11.02	%		12.69	%		10.79	%		10.84	%		11.01	%		11.84	%		11.69	%
Net interest margin (FTE)		3.20	%		3.09	%		2.88	%		2.82	%		2.84	%		3.14	%		2.86	%
Efficiency ratio (2)		61.6	%		61.6	%		65.5	%		65.7	%		67.1	%		61.6	%		65.8	%

Capitalization Ratios

Dividends declared to net income		31.8	%		27.2	%		32.2	%		33.0	%		33.9	%		29.4	%		32.1	%
Shareholders’ equity to assets (Period End)		11.55	%		11.33	%		10.92	%		10.69	%		10.87	%		11.55	%		10.87	%
Tangible common equity to tangible assets (1)		9.52	%		9.31	%		8.92	%		8.71	%		8.81	%		9.52	%		8.81	%
Common equity book value per share	$	31.82		$	31.19		$	30.55		$	30.16		$	29.26		$	31.82		$	29.26
Tangible common equity book value per share (1)	$	25.66		$	25.06		$	24.43		$	24.05		$	23.17		$	25.66		$	23.17

Regulatory Capital Ratios (Period End)
Tier 1 leverage ratio		9.94	%		9.80	%		9.51	%		9.53	%		9.74	%		9.94	%		9.74	%
Common equity tier 1 risk-based capital ratio		11.19	%		10.97	%		10.85	%		10.88	%		10.72	%		11.19	%		10.72	%
Tier 1 risk-based capital ratio		11.19	%		10.97	%		10.85	%		10.88	%		10.72	%		11.19	%		10.72	%
Total risk-based capital ratio		14.58	%		14.35	%		14.19	%		14.27	%		14.09	%		14.58	%		14.09	%

(1) Non-GAAP metric. A reconciliation of this and other non-GAAP to GAAP performance measures is included below.
(2) Noninterest expense to net interest income before loan loss provision plus noninterest income adjusted for tax equivalent income.
(3) Net income before amortization of intangibles to average tangible common equity.


Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
				For the Three Months Ended,
Tax Equivalent Basis	June 30, 2025							March 31, 2025
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	131,391		$	1,371	4.19	%	$	119,997		$	1,360	4.60	%
Obligations of state and political subdivisions*		–			–	–			879			4	1.85
Other debt and equity securities		497,214			3,962	3.20			499,199			4,019	3.27
Federal Home Loan Bank, Federal Reserve Bank and other stock		36,711			671	7.33			37,561			687	7.42
Total interest-earning deposits, investments and other interest-earning assets		665,316			6,004	3.62			657,636			6,070	3.74

Commercial, financial, and agricultural loans		1,005,784			17,686	7.05			990,860			17,020	6.97
Real estate—commercial and construction loans		3,692,262			54,165	5.88			3,704,232			52,676	5.77
Real estate—residential loans		1,727,381			21,772	5.06			1,729,146			21,542	5.05
Loans to individuals		15,575			337	8.68			19,438			393	8.20
Tax-exempt loans and leases		228,856			2,966	5.20			230,133			2,861	5.04
Lease financings		177,080			3,192	7.23			182,694			3,240	7.19
Gross loans and leases		6,846,938			100,118	5.86			6,856,503			97,732	5.78
Total interest-earning assets		7,512,254			106,122	5.67			7,514,139			103,802	5.60
Cash and due from banks		55,335							56,690
Allowance for credit losses, loans and leases		(88,127	)						(87,822	)
Premises and equipment, net		47,299							46,852
Operating lease right-of-use assets		26,948							27,761
Other assets		425,766							423,423
Total assets	$	7,979,475						$	7,981,043

Liabilities:
Interest-bearing checking deposits	$	1,216,909		$	7,800	2.57	%	$	1,222,012		$	7,075	2.35	%
Money market savings		1,754,428			16,945	3.87			1,840,194			18,035	3.97
Regular savings		700,762			749	0.43			702,543			763	0.44
Time deposits		1,541,008			16,261	4.23			1,476,495			16,106	4.42
Total time and interest-bearing deposits		5,213,107			41,755	3.21			5,241,244			41,979	3.25

Short-term borrowings		5,254			1	0.08			6,909			14	0.82
Long-term debt		200,549			2,128	4.26			217,500			2,361	4.40
Subordinated notes		149,444			2,281	6.12			149,319			2,281	6.20
Total borrowings		355,247			4,410	4.98			373,728			4,656	5.05
Total interest-bearing liabilities		5,568,354			46,165	3.33			5,614,972			46,635	3.37
Noninterest-bearing deposits		1,420,143							1,376,409
Operating lease liabilities		29,802							30,675
Accrued expenses and other liabilities		52,640							62,176
Total liabilities		7,070,939							7,084,232
Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)		6,988,497				2.65			6,991,381				2.71

Shareholders’ Equity:
Common stock		157,784							157,784
Additional paid-in capital		301,016							302,653
Retained earnings and other equity		449,736							436,374
Total shareholders’ equity		908,536							896,811
Total liabilities and shareholders’ equity	$	7,979,475						$	7,981,043
Net interest income				$	59,957						$	57,167

Net interest spread						2.34							2.23
Effect of net interest-free funding sources						0.86							0.86
Net interest margin						3.20	%						3.09	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.91	%						133.82	%

* Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $689 thousand and $554 thousand for the three months ended June 30, 2025 and March 31, 2025, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended June 30, 2025 and March 31, 2025 have been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
				For the Three Months Ended June 30,
Tax Equivalent Basis	2025							2024
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	131,391		$	1,371	4.19	%	$	84,546		$	1,108	5.27	%
Obligations of state and political subdivisions*		–			–	–			1,269			7	2.22
Other debt and equity securities		497,214			3,962	3.20			491,871			3,741	3.06
Federal Home Loan Bank, Federal Reserve Bank and other stock		36,711			671	7.33			37,286			700	7.55
Total interest-earning deposits, investments and other interest-earning assets		665,316			6,004	3.62			614,972			5,556	3.63

Commercial, financial, and agricultural loans		1,005,784			17,686	7.05			983,615			17,447	7.13
Real estate—commercial and construction loans		3,692,262			54,165	5.88			3,549,206			50,577	5.73
Real estate—residential loans		1,727,381			21,772	5.06			1,660,489			20,413	4.94
Loans to individuals		15,575			337	8.68			26,821			542	8.13
Tax-exempt loans and leases		228,856			2,966	5.20			230,495			2,476	4.32
Lease financings		177,080			3,192	7.23			189,910			3,105	6.58
Gross loans and leases		6,846,938			100,118	5.86			6,640,536			94,560	5.73
Total interest-earning assets		7,512,254			106,122	5.67			7,255,508			100,116	5.55
Cash and due from banks		55,335							56,387
Allowance for credit losses, loans and leases		(88,127	)						(86,293	)
Premises and equipment, net		47,299							48,725
Operating lease right-of-use assets		26,948							30,344
Other assets		425,766							416,869
Total assets	$	7,979,475						$	7,721,540

Liabilities:
Interest-bearing checking deposits	$	1,216,909		$	7,800	2.57	%	$	1,094,150		$	7,311	2.69	%
Money market savings		1,754,428			16,945	3.87			1,692,759			19,131	4.55
Regular savings		700,762			749	0.43			759,960			929	0.49
Time deposits		1,541,008			16,261	4.23			1,422,113			16,134	4.56
Total time and interest-bearing deposits		5,213,107			41,755	3.21			4,968,982			43,505	3.52

Short-term borrowings		5,254			1	0.08			29,506			242	2.30
Long-term debt		200,549			2,128	4.26			250,000			2,777	4.47
Subordinated notes		149,444			2,281	6.12			148,943			2,281	6.16
Total borrowings		355,247			4,410	4.98			428,449			5,300	4.98
Total interest-bearing liabilities		5,568,354			46,165	3.33			5,397,431			48,805	3.64
Noninterest-bearing deposits		1,420,143							1,384,770
Operating lease liabilities		29,802							33,382
Accrued expenses and other liabilities		52,640							61,385
Total liabilities		7,070,939							6,876,968
Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)		6,988,497				2.65			6,782,201				2.89

Shareholders’ Equity:
Common stock		157,784							157,784
Additional paid-in capital		301,016							299,426
Retained earnings and other equity		449,736							387,362
Total shareholders’ equity		908,536							844,572
Total liabilities and shareholders’ equity	$	7,979,475						$	7,721,540
Net interest income				$	59,957						$	51,311

Net interest spread						2.34							1.91
Effect of net interest-free funding sources						0.86							0.93
Net interest margin						3.20	%						2.84	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.91	%						134.43	%

* Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $689 thousand and $698 thousand for the three months ended June 30, 2025 and 2024, respectively.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the three months ended June 30, 2025 and 2024 have been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Average Balances and Interest Rates (Unaudited)
				For the Six Months Ended June 30,
Tax Equivalent Basis	2025							2024
	Average			Income/		Average		Average			Income/		Average
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets:
Interest-earning deposits with other banks	$	125,725		$	2,731	4.38	%	$	102,696		$	2,717	5.32	%
Obligations of state and political subdivisions*		437			4	1.85			1,610			19	2.37
Other debt and equity securities		498,201			7,981	3.23			495,451			7,388	3.00
Federal Home Loan Bank, Federal Reserve Bank and other stock		37,134			1,358	7.37			38,201			1,424	7.50
Total interest-earning deposits, investments and other interest-earning assets		661,497			12,074	3.68			637,958			11,548	3.64

Commercial, financial, and agricultural loans		998,363			34,706	7.01			959,132			33,970	7.12
Real estate—commercial and construction loans		3,698,214			106,841	5.83			3,562,174			101,218	5.71
Real estate—residential loans		1,728,259			43,314	5.05			1,639,339			39,968	4.90
Loans to individuals		17,495			730	8.41			27,068			1,090	8.10
Tax-exempt loans and leases		229,491			5,827	5.12			231,437			4,940	4.29
Lease financings		179,872			6,432	7.21			189,800			6,274	6.65
Gross loans and leases		6,851,694			197,850	5.82			6,608,950			187,460	5.70
Total interest-earning assets		7,513,191			209,924	5.63			7,246,908			199,008	5.52
Cash and due from banks		56,009							55,628
Allowance for credit losses, loans and leases		(87,975	)						(86,394	)
Premises and equipment, net		47,076							49,659
Operating lease right-of-use assets		27,352							30,733
Other assets		424,601							412,524
Total assets	$	7,980,254						$	7,709,058

Liabilities:
Interest-bearing checking deposits	$	1,219,446		$	14,875	2.46	%	$	1,137,423		$	15,529	2.75	%
Money market savings		1,797,074			34,980	3.93			1,699,025			38,351	4.54
Regular savings		701,648			1,512	0.43			764,943			1,834	0.48
Time deposits		1,508,930			32,367	4.33			1,330,496			29,764	4.50
Total time and interest-bearing deposits		5,227,098			83,734	3.23			4,931,887			85,478	3.49

Short-term borrowings		6,076			15	0.50			19,816			247	2.51
Long-term debt		208,978			4,489	4.33			271,243			5,660	4.20
Subordinated notes		149,382			4,562	6.16			148,881			4,562	6.16
Total borrowings		364,436			9,066	5.02			439,940			10,469	4.79
Total interest-bearing liabilities		5,591,534			92,800	3.35			5,371,827			95,947	3.59
Noninterest-bearing deposits		1,398,396							1,396,917
Operating lease liabilities		30,236							33,774
Accrued expenses and other liabilities		57,382							62,981
Total liabilities		7,077,548							6,865,499
Total interest-bearing liabilities and noninterest-bearing deposits (“Cost of Funds”)		6,989,930				2.68			6,768,744				2.85

Shareholders’ Equity:
Common stock		157,784							157,784
Additional paid-in capital		301,830							300,052
Retained earnings and other equity		443,092							385,723
Total shareholders’ equity		902,706							843,559
Total liabilities and shareholders’ equity	$	7,980,254						$	7,709,058
Net interest income				$	117,124						$	103,061

Net interest spread						2.28							1.93
Effect of net interest-free funding sources						0.86							0.93
Net interest margin						3.14	%						2.86	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.37	%						134.91	%

* Obligations of states and political subdivisions are tax-exempt earning assets.
Notes: For rate calculation purposes, average loan and lease categories include deferred fees and costs and purchase accounting adjustments.
Net interest income includes net deferred costs amortization of $1.2 million for the six months ended June 30, 2025 and 2024.
Nonaccrual loans and leases have been included in the average loan and lease balances. Loans held for sale have been included in the average loan balances. Tax-equivalent amounts for the six months ended June 30, 2025 and 2024 have been calculated using the Corporation’s federal applicable rate of 21.0%.

Univest Financial Corporation
Loan Portfolio Overview (Unaudited)
June 30, 2025

(Dollars in thousands)
Industry Description	Total Outstanding Balance		% of Commercial Loan Portfolio
CRE – Retail	$	453,445	8.4	%
Animal Production		401,946	7.5
CRE – Multi-family		360,345	6.7
CRE – 1-4 Family Residential Investment		279,322	5.2
CRE – Office		262,374	4.9
Hotels & Motels (Accommodation)		222,878	4.1
CRE – Industrial / Warehouse		222,234	4.1
Specialty Trade Contractors		197,138	3.7
Nursing and Residential Care Facilities		167,978	3.1
Homebuilding (tract developers, remodelers)		154,166	2.9
Merchant Wholesalers, Durable Goods		140,876	2.6
Repair and Maintenance		135,318	2.5
Motor Vehicle and Parts Dealers		132,852	2.5
Crop Production		113,684	2.1
CRE – Mixed-Use – Residential		113,422	2.1
Wood Product Manufacturing		99,041	1.8
Food Services and Drinking Places		88,822	1.7
Real Estate Lenders, Secondary Market Financing		87,750	1.6
Administrative and Support Services		86,092	1.6
Professional, Scientific, and Technical Services		85,567	1.6
Merchant Wholesalers, Nondurable Goods		81,836	1.5
Private Equity & Special Purpose Entities (except 52592)		76,957	1.4
CRE – Mixed-Use – Commercial		76,067	1.4
Fabricated Metal Product Manufacturing		72,635	1.4
Amusement, Gambling, and Recreation Industries		69,971	1.3
Education		65,839	1.2
Religious Organizations, Advocacy Groups		65,568	1.2
Personal and Laundry Services		63,886	1.2
Miniwarehouse / Self-Storage		63,531	1.2
Food Manufacturing		53,682	1.0
Industries with >$50 million in outstandings	$	4,495,222	83.6	%
Industries with <$50 million in outstandings	$	880,273	16.4	%
Total Commercial Loans	$	5,375,495	100.0	%


Consumer Loans and Lease Financings	Total Outstanding Balance
Real Estate-Residential Secured for Personal Purpose		984,166
Real Estate-Home Equity Secured for Personal Purpose		195,014
Loans to Individuals		14,069
Lease Financings		232,441
Total – Consumer Loans and Lease Financings	$	1,425,690

Total	$	6,801,185

Univest Financial Corporation
Non-GAAP Reconciliation
June 30, 2025

Non-GAAP to GAAP Reconciliation
Management uses non-GAAP measures in its analysis of the Corporation’s performance. These measures should not be considered a substitute for GAAP basis measures nor should they be viewed as a substitute for operating results determined in accordance with GAAP. Management believes the presentation of the non-GAAP financial measures, which exclude the impact of the specified items, provides useful supplemental information that is essential to a proper understanding of the financial results of the Corporation. See the table below for additional information on non-GAAP measures used throughout this earnings release.

	As of or for the three months ended,															As of or for the six months ended,
(Dollars in thousands)	06/30/25			03/31/25			12/31/24			09/30/24			06/30/24			06/30/25			06/30/24
Net income	$	19,978		$	22,395		$	18,941		$	18,578		$	18,107		$	42,373		$	38,412
Amortization of intangibles, net of tax		103			103			122			130			149			206			296
Net income before amortization of intangibles	$	20,081		$	22,498		$	19,063		$	18,708		$	18,256		$	42,579		$	38,708

Shareholders’ equity	$	916,733		$	903,472		$	887,301		$	877,071		$	854,137		$	916,733		$	854,137
Goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)
Other intangibles (a)		(2,040	)		(2,104	)		(2,263	)		(2,147	)		(2,157	)		(2,040	)		(2,157	)
Tangible common equity	$	739,183		$	725,858		$	709,528		$	699,414		$	676,470		$	739,183		$	676,470

Total assets	$	7,939,056		$	7,975,167		$	8,128,417		$	8,205,737		$	7,855,446		$	7,939,056		$	7,855,446
Goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)
Other intangibles (a)		(2,040	)		(2,104	)		(2,263	)		(2,147	)		(2,157	)		(2,040	)		(2,157	)
Tangible assets	$	7,761,506		$	7,797,553		$	7,950,644		$	8,028,080		$	7,677,779		$	7,761,506		$	7,677,779

Average shareholders’ equity	$	908,536		$	896,811		$	880,237		$	864,406		$	844,572		$	902,706		$	843,559
Average goodwill		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)		(175,510	)
Average other intangibles (a)		(2,068	)		(2,162	)		(2,146	)		(2,086	)		(2,222	)		(2,114	)		(2,271	)
Average tangible common equity	$	730,958		$	719,139		$	702,581		$	686,810		$	666,840		$	725,082		$	665,778

(a) Amount does not include mortgage servicing rights

The MIL Network –

July 24, 2025

MIL-OSI Security: Defense News in Brief: U.S.-Philippine Airmen strengthen ties during Cope Thunder 25-2

Source: United States Airforce

PACAF participated in Cope Thunder 25-2, a unique platform that integrates U.S. and Philippine Air Forces and enhances interoperability through bilateral fighter training, subject matter expert exchanges and key leadership engagements.

CLARK AIR BASE, Philippines (AFNS) —

U.S. Pacific Air Forces and Philippine Air Force members participated in Cope Thunder 25-2, a bilateral training conducted across multiple locations in the Philippines. The exercise aimed to strengthen partnerships and support the Philippine Air Force’s modernization efforts, promoting regional and global stability.

Established in the Philippines in 1976, Cope Thunder provides a unique platform to integrate U.S. and Philippine Air Forces and enhance interoperability through bilateral fighter training, subject matter expert exchanges and key leadership engagements. Cope Thunder 25-2 also marked the first time a U.S. Air Force F-35A Lightning II squadron has deployed to the Philippines.

“It’s obvious that this isn’t a relationship that’s simply on paper,” said Lt. Col. Bryan Mussler, 421st Mission Generation Force Element commander. “We’ve been integrating with them for a long time, and their mentality and approach to operations is very similar to ours.”

Subject matter expert exchanges during the exercise enabled U.S. and Philippine Airmen in similar career fields to share best practices and effective techniques aimed at improving day-to-day operations for both forces. These exchanges included maintenance, firefighting, airfield operations, electromagnetic warfare and basic fighter manoeuvres with U.S. and Philippine pilots flying side by side.

U.S. Air Force maintainers, assigned to the 421st Mission Generation Force Element, depart the flightline after conducting preflight operations on an F-35A Lightning II during Cope Thunder 25-2 at Clark Air Base, Philippines, July 7, 2025. The exercise enhances interoperability between the U.S. Air Force and the Philippine Air Force and supported the Armed Forces of the Philippines’ modernization efforts. (U.S. Air Force photo by Airman 1st Class Aden Brown)

U.S. Air Force Staff Sgt. Arnaldo Puente Mendez, 421st Mission Generation Force Element aerospace ground equipment maintainer, briefs Philippine Air Force airmen on a self-generating nitrogen servicing cart during Cope Thunder 25-2 at Clark Air Base, Philippines, July 9, 2025. During the subject matter expert exchange, U.S. Airmen provided valuable insight into equipment used for aircraft maintenance, supporting Armed Forces of the Philippines’ modernization efforts. (U.S. Air Force photo by Airman 1st Class Aden Brown)

U.S. Air Force Capt. Tyler Rico, second to the left, and Capt. Toney Fisher, right, 421st Mission Generation Force Element F-35A pilots, coordinate flight plans with Philippine Air Force pilots during the Cope Thunder 25-2 exercise at Clark Air Base, Philippines, July 7, 2025. The training conducted between the U.S. and Philippine Air Force strengthens both the ability to respond together for potential future crises, contingencies and natural disasters. (U.S. Air Force photo by Airman 1st Class Aden Brown) (Image blurred for operational security)

“We worked closely with the PAF pilots, and it was clear they are professional and highly capable aviators that employ their weapon systems with skill and precision,” said Capt. Tobey Fisher, 421st Mission Generation Force Element F-35A instructor pilot. “Additionally, this exercise afforded the 421st MGFE the opportunity to operate at a remote airfield with minimal support.”

The F-35A maintenance team supported Cope Thunder 25-2 with a lean, agile team, operating with roughly one-third of the personnel they typically have at their home station.

“It’s really cool to see such a small team come here and execute the mission,” said Maj. Clinton Bialcak, 421st Fighter Generation Squadron commander, referring to executing the F-35 maintenance mission. “I think everyone in the region, in the world and in the Department of Defense sees that we can do it and they can rely on us.”

The U.S. Air Force’s participation reflects ongoing efforts to strengthen coordination with regional allies and partners.

MIL Security OSI –

July 24, 2025

MIL-OSI Security: Defense News in Brief: Next-gen TOC-L systems announced to boost agile C2 capabilities

Source: United States Airforce

The DAF has announced the upgrade of the Tactical Operations Center-Light capability with its Major Release 2 prototype, designed to advance contributions to Combined Joint All-Domain Command and Control.

ARLINGTON, Va. (AFNS) —

The Department of the Air Force recently announced the upgrade of the Tactical Operations Center-Light capability with its Major Release 2 prototype, July 22.

This rapid prototyping effort, developed with support from long-standing industry partners, will deliver more than 40 next-generation TOC-L systems designed to advance the DAF’s contribution to Combined Joint All-Domain Command and Control.

“This has been a major push from our team and industry partners to see the TOC-L MR2 prototype developed with all the lessons learned from MR1,” said Maj. Gen. Luke Cropsey, DAF’s Program Executive Officer for Command, Control, Communications and Battle Management. “This achievement truly embodies our agile acquisition approach, setting the stage for a phased deployment where we can rapidly field operationally relevant upgrades based on feedback from the field.”

Managed by DAF PEO C3BM’s Advanced Battle Management System Division, the TOC-L integrates data from multiple sources to create a synchronized air picture. The MR2 prototype represents a crucial leap forward for the TOC-L. While 16 MR1 prototypes focused on minimizing the system’s physical footprint, MR2 also prioritizes enhanced integration capabilities.

“The MR2 aims to enhance portability, survivability, mobility and ease of use through reduced size, weight, power, while featuring improved usability and maintainability to reduce training time and improve operational readiness,” said Lt. Col. Micah Graber, ABMS Deployable Systems Branch materiel leader. “The system will also feature ABMS Digital Infrastructure and Cloud-Based Command and Control software capability for enhanced enterprise interoperability and expanded data access within the DAF BATTLE NETWORK.”

This shift from maneuverability to integration leveraged insights gained from the MR1 prototype’s first operational deployment to Combined Joint Task Force-Horn of Africa, which provided real-world capability assessment. Along with data from prior experiments, recent participation in the U.S. Army’s Project Convergence Capstone 5 also played a vital role in directly informing MR2 requirements, focusing on the system’s integration with other key technologies.

“The plan for the MR2 prototypes builds upon the lessons learned from the original 16,” said Stephen Ciulla, ABMS TOC-L program manager. “The potential use cases and operational possibilities have expanded over the last 18 months and MR2 development includes more rigorous testing and design validation to ensure that functional and operational requirements are met.”

The MR2 prototype will serve as the execution arm of the DAF BATTLE NETWORK by utilizing ABMS DI to communicate to various sensors and C2 systems, according to Ciulla. This bridges communication gaps between disparate systems, facilitating seamless cross-domain integration and interoperability. CBC2 functionality additionally employs advanced software and artificial intelligence to assist battle managers in prioritizing and executing actions, while advancing human-machine teaming.

“MR2’s integration advancements, enabled by ABMS DI and CBC2, will enable seamless information sharing and improved coordination among warfighters in contested environments, leading to a more cohesive and effective force,” Graber said. “This enhanced interoperability translates into tangible operational advancements by allowing for better-informed decisions and more decisive actions across all levels – tactical, operational and strategic.”

The TOC-L prototype is a critical component of the DAF BATTLE NETWORK, contributing to enhanced situational awareness and decision-making across the battlespace. The MR2 prototype underscores the Air Force’s commitment to delivering cutting-edge technology to the warfighter, ensuring decisive advantage in future conflicts.

MIL Security OSI –

July 24, 2025

MIL-OSI Canada: New and Enhanced Health care Positions Announced to Strengthen Rural and Remote Services Across Saskatchewan

Source: Government of Canada regional news

Released on July 23, 2025

Positions Funded by Saskatchewan Health Authority Administrative Leadership Reduction Will Benefit 30 Communities

The Government of Saskatchewan and the Saskatchewan Health Authority (SHA) are adding 77 new and enhanced permanent full-time positions to benefit 30 rural and remote communities. These health care positions will improve emergency and acute care services, reduce service disruptions and continue building a more stable health workforce across Saskatchewan.

These enhancements build on the success of previous rural and remote staffing stabilization efforts that, since 2022, have added 315 new and enhanced positions as part of the provincial Health Human Resources Action Plan. The additional 77 positions will focus on communities that continue to experience service disruptions or have faced ongoing staffing challenges.

“Adding Registered Nurses, Licensed Practical Nurses, Medical Radiation Technologists and other positions that deliver hands-on patient care reflect the shared commitment of the Government of Saskatchewan and SHA to ensure Saskatchewan residents have seamless access to care, as close to home as possible,” Health Minister Jeremy Cockrill said. “The SHA has closely scrutinized their costs and identified savings that will help fund these essential positions and provide positive care to patients in communities stretching across the province.”

The positions will be funded through $6.2 million in annual savings resulting from the SHA’s recent restructuring of out-of-scope administrative leadership. Announced on June 12, 2025, the SHA’s administrative leadership restructuring effort achieved $10.4 million in total annual efficiencies by reducing 26 senior out-of-scope leadership positions, along with additional reductions in corporate, management and support roles. The SHA has already directed $4.2 million of these savings toward the creation of 27 new and 20 enhanced Clinical Manager positions in 45 rural and northern communities, strengthening on-site leadership and improving local oversight of care delivery.

“This investment reflects our ongoing focus on strengthening care at the local level by placing permanent health care professionals in communities where they are needed most,” Saskatchewan Health Authority COO Derek Miller said. “By stabilizing staffing and reducing service disruptions, we are helping ensure residents receive reliable access to high-quality care.”

The 77 positions include a range of clinical roles such as Registered Nurses (RNs), Registered Psychiatric Nurses (RPNs), Licensed Practical Nurses (LPNs), Combined Lab and X-ray Technicians (CLXTs), Medical Radiation Technologists (MRTs) and Phlebotomists. These roles will either create new permanent full-time positions or convert longstanding part-time vacancies into permanent full-time roles. This will support improved recruitment and retention of positions, reduce reliance on contract staff and promote more consistent emergency department coverage.

Past stabilization efforts have demonstrated measurable progress in reducing service disruptions in rural and remote areas.

“This is the latest progressive step forward in our plans to strengthen rural and northern health care teams that are making a real difference to the people of Saskatchewan,” Rural and Remote Health Minister Lori Carr said. “Efforts include the Saskatchewan Rural and Remote Recruitment Incentive, adding several hundred new and enhanced positions in over 70 communities, implementing the Virtual Physician program, and expansion of Point-of-Care Lab Testing. Thanks to these initiatives, rural and remote communities saw a 28 per cent reduction in service disruption days. In the past 16-months, Virtual Physician coverage and Point-of-Care Lab Testing helped prevent more than 2,700 service disruptions.”

Many of the new positions will be eligible to apply for the Saskatchewan Rural and Remote Recruitment Incentive (RRRI), which provides up to $50,000 over three years with a return in service agreement. Since its launch in 2022, the RRRI has supported the hiring of more than 400 health professionals in approximately 70 communities, resulting in reduced vacancies, improved staffing levels and greater service stability across the province.

Positions will be introduced in the following communities: Arcola, Assiniboia, Broadview, Canora, Estevan, Hudson Bay, Humboldt, Kamsack, Kerrobert, Kindersley, Kipling, La Ronge, Leader, Lloydminster, Maple Creek, Melville, Moose Jaw, Moosomin, Nipawin, North Battleford, Outlook, Porcupine Plain, Prince Albert, Redvers, Rosetown, Shaunavon, Shellbrook, Unity, Wadena and Weyburn.

These new positions are part of the ongoing implementation of the provincial Health Human Resources Action Plan, launched in 2022 to recruit, train, incentivize and retain Saskatchewan’s health workforce. The Government of Saskatchewan and the SHA remain committed to working together to enhance the delivery of health services in rural and remote communities.

-30-

For more information, contact:

MIL OSI Canada News –

July 24, 2025

MIL-OSI USA: Urgent: Take action to protect Tennessee Valley Authority from privatization

Source: US International Brotherhood of Boilermakers

Breaking News

Since 1933, the Boilermakers have been working with the Tennessee Valley Authority (TVA) to build and maintain the infrastructure that powers the South. What began as a New Deal hydroelectric-focused endeavor has evolved over the past 90 years to coal, natural gas, nuclear and a planned, first-in-the-nation nuclear fusion generation facility. The generating assets within the TVA are diverse and efficient, delivering power to millions of southern households across seven states, powering the southern economy and stabilizing the national electric grid. TVA is a federally owned power authority that has been operating in partnership with the IBB for nearly 100 years, producing millions of man-hours for generations.

Since the Obama administration, several unsuccessful attempts have been made to privatize TVA. There are strong rumors that the Trump administration is considering privatization of TVA, meaning they would sell off the generating assets and infrastructure to the highest bidder, jeopardizing millions of Boilermaker man-hours. Additionally, privatizing TVA’s assets would cost families who live in the TVA jurisdiction an estimated additional $50 a month on their utility bill—a cost most working families cannot afford.

Below is the Boilermakers’ official statement urging against privatization of TVA. Boilermakers are strongly encouraged to contact their U.S. Senators using this action page link, which can and should be shared widely. The link will take you to an easy form that will automatically contact your Senator with a letter. It only takes a minute. This will help Boilermakers working on TVA projects and remind Washington that Boilermakers power America.

Boilermakers’ official statement on privatization of the Tennessee Valley Authority

Kansas City, Mo. (July 23, 2025) — Following is the official statement of the International Brotherhood of Boilermakers, issued by International President Timothy Simmons, regarding U.S. Senate consideration of privatization of the Tennessee Valley Authority

We urge the Senate to slow down any attempt to privatize the Tennessee Valley Authority, as any such effort would have devastating effects across the South and our nation. Through the hard work of thousands of Boilermakers, TVA has been efficiently and effectively powering the South for over 90 years, building and maintaining a diverse portfolio of power generation assets across seven states. Disrupting TVA’s service to the South would, in turn, disrupt the nation, stalling out our ability to meet increasing power demands further stressed by the need to support the ever-evolving AI technology sector. In its current practice, TVA generates power that is affordable for every family and stabilizes the nation’s power grid. This is a classic case of “if it’s not broken, don’t fix it.”

All Boilermakers are encouraged to contact their U.S. Senators using this action link.

View the full statement PDF

MIL OSI USA News –

July 24, 2025

MIL-OSI: Goosehead Insurance, Inc. Announces Second Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

– Total Revenue Increased 20% and Core Revenue* Grew 18% over the Prior-Year Period –

– Total Written Premium increased 18% to $1.2 billion over the Prior-Year Period –

– Net Income of $8.3 million versus Net Income of $10.9 million a year ago –

– Adjusted EBITDA* of $29.2 million versus $24.7 million in the Prior-Year Period –

WESTLAKE, Texas, July 23, 2025 (GLOBE NEWSWIRE) — Goosehead Insurance, Inc. (“Goosehead” or the “Company”) (NASDAQ: GSHD), a rapidly growing independent personal lines insurance agency, today announced results for the second quarter ended June 30, 2025.

Second Quarter 2025 Highlights

Total Revenues grew 20% over the prior-year period to $94.0 million in the second quarter of 2025
Second quarter Core Revenues* of $86.8 million increased 18% over the prior-year period
Second quarter net income of $8.3 million decreased from net income of $10.9 million a year ago
EPS of $0.20 per share decreased from $0.25 in the prior-year period, and Adjusted EPS* of $0.49 per share increased 14% over the prior-year period
Net Income Margin for the second quarter was 9%
Adjusted EBITDA* of $29.2 million increased from $24.7 million in the prior-year period
Adjusted EBITDA Margin* decreased versus the prior-year period to 31%
Total Written Premiums placed for the second quarter increased 18% over the prior-year period to $1.2 billion.
Policies in Force increased 13% from the prior-year period to approximately 1,793,000
Corporate agent headcount of 479 was up 53% compared to the prior-year period
Total franchise producers of 2,085 increased 5% from the prior-year period

“We delivered another strong quarter result while making substantial investments in people and technology that are laying the foundation for significant transformation, efficiency and future growth,” said Mark Miller, President and CEO. “In the second quarter we delivered premium growth of 18%, total revenue growth of 20%, core revenue growth of 18%, net income decline of 24% and adjusted EBITDA growth of 18% with net income margin of 9% and adjusted EBITDA margin of 31%. We are adding productive capacity to our corporate and franchise networks in varied geographies, building new go-to-market motions through enterprise sales and partnerships, and developing new technologies to engage with clients and partners in the ways they find most optimal – be it through agent interaction or digitally direct. We continue our work to become the largest distributor of personal lines in our founder’s life-time and I am extremely proud to be part of this incredible team executing towards that objective.”

^*Core Revenue, Adjusted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin are non-GAAP measures. Reconciliations of Core Revenue to total revenues, Adjusted EPS to basic earnings per share and Adjusted EBITDA to net income, the most directly comparable financial measures presented in accordance with GAAP, are set forth in the reconciliation table accompanying this release.

Second Quarter 2025 Results
For the second quarter of 2025, revenues were $94.0 million, an increase of 20% compared to the corresponding period in 2024. Core Revenues, a non-GAAP measure which excludes contingent commissions, initial franchise fees, interest income, and other franchise revenues, were $86.8 million, a 18% increase from $73.4 million in the prior-year period. Core Revenues are the most reliable revenue stream for the Company, consisting of New Business Commissions, Agency Fees, New Business Royalty Fees, Renewal Commissions, and Renewal Royalty Fees. During the quarter, we recovered $4.0 million of renewal commission and royalty fees, from an existing large carrier partner which raised the commission for all of their existing business with Goosehead. This increased commission rate should result in an ongoing benefit to our existing renewal book of approximately $1.5 million in the second half of the year. Core Revenue growth was driven by increased producer count, improved franchise productivity, client retention of 84%, and moderating premium rate increases. The Company grew total written premiums, which we consider to be the leading indicator of future revenue growth, by 18% in the second quarter.

Total operating expenses for the second quarter of 2025 were $78.4 million, up from $62.7 million in the prior-year period. Total operating expenses, excluding equity-based compensation, depreciation and amortization, and impairment expenses* for the second quarter of 2025 were $64.9 million, up 21% from $53.4 million in the prior-year period. Employee compensation and benefits increased to $50.4 million from $42.6 million in the prior-year period. Employee compensation and benefits, excluding equity-based compensation* increased to $44.4 million from $35.9 million in the prior-year period. The increases were primarily due to investments in corporate producers and our service and technology functions. Equity-based compensation decreased to $6.0 million for the period, compared to $6.6 million in the prior-year period. General and administrative expenses increased to $24.6 million from $16.9 million in the prior-year period. General and administrative expenses, excluding impairment*, increased to $20.0 million from $16.9 million in the prior-year period. The increases were primarily due to investments in technology and systems to drive growth and continue to improve the client experience. Bad debt expense of $0.6 million decreased from $0.7 million in the prior-year period. During the second quarter, the Company identified three office leases that would be exited or subleased. As a result, the Company recorded impairment expense for the second quarter of 2025 of $4.7 million.

Net income in the second quarter of 2025 was $8.3 million versus net income of $10.9 million in the prior-year period. Earnings per share and Net Income Margin for the second quarter of 2025 were $0.20 and 9%, respectively. Adjusted EPS for the second quarter of 2025, which excludes equity-based compensation and impairment expense, was $0.49 per share. Total Adjusted EBITDA was $29.2 million for the second quarter of 2025 compared to $24.7 million in the prior-year period. Adjusted EBITDA Margin of 31% decreased compared to the prior-year period.

*Total operating expenses, excluding equity-based compensation, depreciation and amortization, and impairment expenses; Employee compensation and benefits, excluding equity-based compensation; and General and administrative expenses, excluding impairment are non-GAAP measures. For the definition and reconciliation of each non-GAAP measure, see “Reconciliation of Non-GAAP Measures to GAAP” below.

Liquidity and Capital Resources
As of June 30, 2025, the Company had cash and cash equivalents of $92.4 million. We had an unused line of credit of $75.0 million as of June 30, 2025. Total outstanding term note payable balance was $299.3 million as of June 30, 2025. During the quarter ended June 30, 2025, the Company repurchased and retired 6 thousand shares at an average share price of $94.51. As of June 30, 2025, $99.5 million remains available under the share repurchase authorization.

On July 9, 2025, the Company successfully completed the repricing of its existing $299.3 million term loan B maturing on January 8, 2032. The term loan facility will bear interest at a rate of SOFR plus 3.00%, representing a 50 basis point reduction from the prior term loan interest rate

2025 Outlook
The Company’s guidance for full year 2025 is as follows:

Total written premiums placed for 2025 are expected to be between $4.38 billion and $4.65 billion, representing growth of 15% on the low end of the range to 22% on the high end of the range.
Total revenues for 2025 are expected to be between $350 million and $385 million, representing growth of 11% on the low end of the range to 22% on the high end of the range.

Conference Call Information
Goosehead will host a conference call and webcast today at 4:30 PM ET to discuss these results.

To access the call by phone, participants should go to this link (registration link), and you will be provided with the dial in details.

In addition, a live webcast of the conference call will also be available on Goosehead’s investor relations website at http://ir.goosehead.com.

A webcast replay of the call will be available at http://ir.goosehead.com for one year following the call.

About Goosehead
Goosehead (NASDAQ: GSHD) is a rapidly growing and innovative independent personal lines insurance agency that distributes its products and services through corporate and franchise locations throughout the United States. Goosehead was founded on the premise that the consumer should be at the center of our universe and that everything we do should be directed at providing extraordinary value by offering broad product choice and a world-class service experience. Goosehead represents over 200 insurance companies that underwrite personal and commercial lines. For more information, please visit goosehead.com or goosehead.com/become-a-franchisee.

Forward-Looking Statements
This press release may contain various “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, which represent Goosehead’s expectations or beliefs concerning future events. Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Goosehead’s strategies or expectations. In some cases, you can identify these statements by forward-looking words such as “may”, “might”, “will”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “projects”, “potential”, “outlook” or “continue”, or the negative of these terms or other comparable terminology. Forward-looking statements are based on management’s current expectations and beliefs and involve significant risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by these statements.

Factors that could cause actual results or performance to differ from the expectations expressed or implied in such forward-looking statements include, but are not limited to, conditions impacting insurance carriers or other parties with which Goosehead does business, the loss of one or more key executives or an inability to attract and retain qualified personnel and the failure to attract and retain highly qualified franchisees. These risks and uncertainties also include, but are not limited to, those described under the captions “1A. Risk Factors” in Goosehead’s Annual Report on Form 10-K for the year ended December 31, 2024 and in Goosehead’s other filings with the SEC, which are available free of charge on the Securities Exchange Commission’s website at: www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated. All forward-looking statements and all subsequent written and oral forward-looking statements attributable to Goosehead or to persons acting on behalf of Goosehead are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date they are made, and Goosehead does not undertake any obligation to update them in light of new information, future developments or otherwise, except as may be required under applicable law.

Contacts
Investor Contact:
Dan Farrell
Goosehead Insurance – VP Capital Markets
Phone: (214) 838-5290
Email: dan.farrell@goosehead.com; IR@goosehead.com;

PR Contact:
Mission North for Goosehead Insurance
Email: goosehead@missionnorth.com; PR@goosehead.com


Goosehead Insurance, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Revenues:
Commissions and agency fees	$	38,076		$	31,619		$	67,499		$	57,840
Franchise revenues		55,772			46,225			101,744			84,214
Interest income		179			244			368			494
Total revenues		94,027			78,088			169,611			142,548
Operating Expenses:
Employee compensation and benefits		50,388			42,551			98,722			84,681
General and administrative expenses		24,647			16,855			42,206			34,035
Bad debts		550			653			957			1,780
Depreciation and amortization		2,782			2,632			5,452			5,200
Total operating expenses		78,367			62,691			147,337			125,696
Income from operations		15,660			15,397			22,274			16,852
Other Income:
Interest expense		(6,303	)		(1,982	)		(12,126	)		(3,469	)
Other income (expense)		815			441			983			(6,286	)
Income before taxes		10,172			13,856			11,131			7,097
Tax expense (benefit)		1,889			2,981			202			(5,587	)
Net income		8,283			10,875			10,929			12,684
Less: net income attributable to noncontrolling interests		3,133			4,677			3,437			4,672
Net income attributable to Goosehead Insurance, Inc.	$	5,150		$	6,198		$	7,492		$	8,012
Earnings per share:
Basic	$	0.20		$	0.25		$	0.30		$	0.32
Diluted	$	0.18		$	0.24		$	0.27		$	0.29
Weighted average shares of Class A common stock outstanding
Basic		25,216			24,693			25,005			24,890
Diluted		38,553			38,031			38,542			38,435


Goosehead Insurance, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Revenues:
Core Revenue:
Renewal Commissions⁽¹⁾	$	23,119		$	20,591		$	40,071		$	36,552
Renewal Royalty Fees⁽²⁾		45,381			36,828			82,625			65,881
New Business Commissions⁽¹⁾		7,559			6,682			13,314			12,363
New Business Royalty Fees⁽²⁾		7,820			7,169			14,749			13,402
Agency Fees⁽¹⁾		2,906			2,137			5,146			4,048
Total Core Revenue		86,785			73,407			155,905			132,246
Cost Recovery Revenue:
Initial Franchise Fees⁽²⁾		1,247			1,631			2,589			3,875
Interest Income		179			244			368			494
Total Cost Recovery Revenue		1,426			1,875			2,957			4,369
Ancillary Revenue:
Contingent Commissions⁽¹⁾		4,492			2,209			8,968			4,877
Other Franchise Revenues⁽²⁾		1,324			598			1,781			1,055
Total Ancillary Revenue		5,816			2,807			10,749			5,933
Total Revenues		94,027			78,088			169,611			142,548
Operating Expenses:
Employee compensation and benefits, excluding equity-based compensation		44,372			35,919			86,470			70,692
General and administrative expenses, excluding impairment		19,953			16,855			37,512			33,688
Bad debts		550			653			957			1,780
Total		64,875			53,427			124,939			106,160
Adjusted EBITDA		29,152			24,661			44,672			36,388
Adjusted EBITDA Margin		31	%		32	%		26	%		26	%

Interest expense		(6,303	)		(1,982	)		(12,126	)		(3,469	)
Depreciation and amortization		(2,782	)		(2,632	)		(5,452	)		(5,200	)
Tax (expense) benefit		(1,889	)		(2,981	)		(202	)		5,587
Equity-based compensation		(6,016	)		(6,632	)		(12,253	)		(13,989	)
Impairment expense		(4,694	)		—			(4,694	)		(347	)
Other income (expense)		815			441			983			(6,286	)
Net Income	$	8,283		$	10,875		$	10,929		$	12,684
Net Income Margin		9	%		14	%		6	%		9	%
_{(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in “Commissions and agency fees” as shown on the Condensed Consolidated Statements of Operations within Goosehead’s Form 10-Q for the three and six months ended June 30, 2025 and 2024.}
_{(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Franchise Revenues are included in “Franchise revenues” as shown on the Condensed Consolidated Statements of Operations within Goosehead’s Form 10-Q for the three and six months ended June 30, 2025 and 2024.}


Goosehead Insurance, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands, except per share amounts)

	June 30,			December 31,
	2025			2024
Assets
Current Assets:
Cash and cash equivalents	$	92,388		$	54,280
Restricted cash		3,234			3,693
Commissions and agency fees receivable, net		10,597			31,375
Receivable from franchisees, net		11,323			11,077
Prepaid expenses		17,626			8,139
Total current assets		135,168			108,564
Receivable from franchisees, net of current portion		3,082			3,469
Property and equipment, net of accumulated depreciation		21,967			24,101
Right-of-use asset		32,266			37,420
Intangible assets, net of accumulated amortization		30,329			25,075
Deferred income taxes, net		207,521			193,478
Other assets		6,254			5,546
Total assets	$	436,587		$	397,653
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable and accrued expenses	$	23,173		$	22,891
Premiums payable		3,234			3,693
Lease liability		6,357			6,535
Contract liabilities		3,478			3,275
Note payable		3,000			10,063
Liabilities under tax receivable agreement		6,993			—
Total current liabilities		46,235			46,457
Lease liability, net of current portion		51,925			54,536
Note payable, net of current portion		289,777			82,251
Contract liabilities, net of current portion		14,436			15,191
Liabilities under tax receivable agreement, net of current portion		164,808			160,142
Total liabilities		567,181			358,577
Class A common stock, $0.01 par value per share – 300,000 shares authorized, 25,351 shares issued and outstanding as of June 30, 2025, 24,668 shares issued and outstanding as of December 31, 2024		254			247
Class B common stock, $0.01 par value per share – 50,000 shares authorized, 12,207 issued and outstanding as of June 30, 2025, 12,620 shares issued and outstanding as of December 31, 2024		122			126
Additional paid in capital		74,730			58,917
Accumulated deficit		(153,695	)		(15,401	)
Total stockholders’ equity		(78,589	)		43,889
Non-controlling interests		(52,005	)		(4,813	)
Total equity		(130,594	)		39,076
Total liabilities and equity	$	436,587		$	397,653

.
Goosehead Insurance, Inc.
Reconciliation of Non-GAAP Measures to GAAP

This release includes certain financial performance measures that are not required by, nor presented in accordance with, generally accepted accounting principles in the United States (“GAAP”). The Company refers to these measures as “non-GAAP financial measures.” The Company uses these non-GAAP financial measures when planning, monitoring and evaluating its performance and considers these non-GAAP financial measures to be useful metrics for management and investors to facilitate operating performance comparisons from period to period by excluding potential differences caused by variations in capital structures, tax position, depreciation, amortization and certain other items that the Company believes are not representative of its core business. The Company uses these non-GAAP financial measures for business planning purposes and in measuring its performance relative to that of its competitors.

These non-GAAP financial measures are defined by the Company as follows:

“Core Revenue” is a supplemental measure of our performance and includes Renewal Commissions, Renewal Royalty Fees, New Business Commissions, New Business Royalty Fees, and Agency Fees. We believe that Core Revenue is an appropriate measure of operating performance because it summarizes all of our revenues from sales of individual insurance policies.
“Cost Recovery Revenue” is a supplemental measure of our performance and includes Initial Franchise Fees and Interest Income. We believe that Cost Recovery Revenue is an appropriate measure of operating performance because it summarizes revenues that are viewed by management as cost recovery mechanisms.
“Ancillary Revenue” is a supplemental measure of our performance and includes Contingent Commissions and Other Franchise Revenues. We believe that Ancillary Revenue is an appropriate measure of operating performance because it summarizes revenues that are ancillary to our core business.
“Adjusted EBITDA” is a supplemental measure of the Company’s performance. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it eliminates the impact of items that do not relate to business performance. Adjusted EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation and amortization, adjusted to exclude equity-based compensation, impairment expense, and other non-operating items, including, among other things, certain non-cash charges and certain non-recurring or non-operating gains or losses.
“Adjusted EBITDA Margin” is Adjusted EBITDA as defined above, divided by total revenue. Adjusted EBITDA Margin is helpful in measuring profitability of operations on a consolidated level.
“Adjusted EPS” is a supplemental measure of our performance, defined as earnings per share (the most directly comparable GAAP measure) before non-recurring or non-operating income and expenses. Adjusted EPS is a useful measure to management and our investors because it eliminates the impact of items that do not relate to business performance and helps measure our profitability on a consolidated level.
“Total operating expenses, excluding equity-based compensation, depreciation and amortization, and impairment expenses” is defined as total operating expenses (the most directly comparable GAAP measure) before equity-based compensation, depreciation and amortization, and impairment expenses. This measure is useful to management and our investors as it eliminates the impact of certain non-cash charges.
“Employee compensation and benefits, excluding equity-based compensation” is defined as Employee compensation and benefits (the most directly comparable GAAP measure) before equity-based compensation. This measure is useful to management and our investors as it eliminates the impact of certain non-cash compensation charges.
“General and administrative expenses, excluding impairment” is defined as general and administrative expenses (the most directly comparable GAAP measure) before impairment expense. This measure is useful to management and our investors as it eliminates the impact of certain non-cash charges.

While the Company believes that these non-GAAP financial measures are useful in evaluating its business, this information should be considered as supplemental in nature and is not meant as a substitute for revenues, net income, or earnings per share, in each case as recognized in accordance with GAAP. In addition, other companies, including companies in the Company’s industry, may calculate such measures differently, which reduces their usefulness as comparative measures.

The following tables show a reconciliation from total revenues to Core Revenue, Cost Recovery Revenue, and Ancillary Revenue (non-GAAP basis) for the three and six months ended June 30, 2025 and 2024 (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Total Revenues	$	94,027	$	78,088	$	169,611	$	142,548

Core Revenue:
Renewal Commissions⁽¹⁾	$	23,119	$	20,591	$	40,071	$	36,552
Renewal Royalty Fees⁽²⁾		45,381		36,828		82,625		65,881
New Business Commissions⁽¹⁾		7,559		6,682		13,314		12,363
New Business Royalty Fees⁽²⁾		7,820		7,169		14,749		13,402
Agency Fees⁽¹⁾		2,906		2,137		5,146		4,048
Total Core Revenue		86,785		73,407		155,905		132,246
Cost Recovery Revenue:
Initial Franchise Fees⁽²⁾		1,247		1,631		2,589		3,875
Interest Income		179		244		368		494
Total Cost Recovery Revenue		1,426		1,875		2,957		4,369
Ancillary Revenue:
Contingent Commissions⁽¹⁾		4,492		2,209		8,968		4,877
Other Franchise Revenues⁽²⁾		1,324		598		1,781		1,055
Total Ancillary Revenue		5,816		2,807		10,749		5,933
Total Revenues	$	94,027	$	78,088	$	169,611	$	142,548
_{(1) Renewal Commissions, New Business Commissions, Agency Fees, and Contingent Commissions are included in “Commissions and agency fees” as shown on the Condensed Consolidated Statements of Operations.}
_{(2) Renewal Royalty Fees, New Business Royalty Fees, Initial Franchise Fees, and Other Franchise Revenues are included in “Franchise revenues” as shown on the Condensed Consolidated Statements of Operations.}

The following tables show a reconciliation from net income to Adjusted EBITDA and Adjusted EBITDA Margin (non-GAAP basis) for the three and six months ended June 30, 2025 and 2024 (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2025			2024			2025			2024
Net Income	$	8,283		$	10,875		$	10,929		$	12,684
Interest expense		6,303			1,982			12,126			3,469
Depreciation and amortization		2,782			2,632			5,452			5,200
Tax expense (benefit)		1,889			2,981			202			(5,587	)
Equity-based compensation		6,016			6,632			12,253			13,989
Impairment expense		4,694			—			4,694			347
Other (income) expense		(815	)		(441	)		(983	)		6,286
Adjusted EBITDA	$	29,152		$	24,661		$	44,672		$	36,388
Net Income Margin⁽¹⁾		9	%		14	%		6	%		9	%
Adjusted EBITDA Margin⁽²⁾		31	%		32	%		26	%		26	%
_{(1) Net Income Margin is calculated as Net Income divided by Total Revenue ($8,283/$94,027) and ($10,875/$78,088) for the three months ended June 30, 2025 and 2024. Net Income Margin is calculated as Net Income divided by Total Revenue ($10,929/$169,611) and ($12,684/$142,548) for the six months ended June 30, 2025 and 2024.}
_{(2) Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($29,152/$94,027), and ($24,661/$78,088) for the three months ended June 30, 2025 and 2024, respectively. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by Total Revenue ($44,672/$169,611), and ($36,388/$142,548) for the six months ended June 30, 2025 and 2024.}

The following tables show a reconciliation from basic earnings per share to Adjusted EPS (non-GAAP basis) for the three and six months ended June 30, 2025 and 2024. Note that totals may not sum due to rounding:

	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Earnings per share – basic (GAAP)	$	0.20	$	0.25	$	0.30	$	0.32
Add: equity-based compensation⁽¹⁾		0.16		0.18		0.33		0.37
Add: impairment expense⁽²⁾		0.13		—		0.13		0.01
Adjusted EPS (non-GAAP)	$	0.49	$	0.43	$	0.76	$	0.70
_{(1) Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$6.0 million/(25.2 million + 12.3 million)] for the three months ended June 30, 2025 and [$6.6 million/ (24.7 million + 12.8 million)] for the three months ended June 30, 2024. Calculated as equity-based compensation divided by sum of weighted average Class A and Class B shares [$12.3 million/(25.0 million + 12.5 million)] for the six months ended June 30, 2025 and [$14.0 million/ (24.9 million + 12.8 million)] for the six months ended June 30, 2024.}
_{(2) Calculated as impairment expense divided by sum of weighted average Class A and Class B shares [$4.7 million/(25.2 million + 12.3 million)] for the three months ended June 30, 2025 and [$4.7 million/(25.0 million + 12.5 million)] for the six months ended June 30, 2025. Calculated as impairment expense divided by sum of weighted average Class A and Class B shares [$0.3 million/(24.9 million + 12.8 million)] for the six months ended June 30, 2024. No impairment was recorded for the three months ended June 30, 2024.}


Goosehead Insurance, Inc. Key Performance Indicators

	June 30, 2025			December 31, 2024			June 30, 2024
Corporate sales agents < 1 year tenured		282			253			157
Corporate sales agents > 1 year tenured		197			164			156
Operating franchises < 1 year tenured		95			90			89
Operating franchises > 1 year tenured		980			1,013			1,033
Total Franchise Producers		2,085			2,092			1,995
QTD Corporate Agent Productivity < 1 Year⁽¹⁾	$	18,612		$	12,787		$	21,338
QTD Corporate Agent Productivity > 1 Year⁽¹⁾	$	30,709		$	26,788		$	32,146
QTD Franchise Productivity < 1 Year⁽²⁾	$	17,837		$	17,861		$	23,401
QTD Franchise Productivity > 1 Year⁽²⁾	$	36,287		$	29,089		$	30,433
Policies in Force		1,793,000			1,674,000			1,588,000
Client Retention		84	%		84	%		84	%
Premium Retention		95	%		98	%		99	%
QTD Written Premium (in thousands)	$	1,175,909		$	965,596		$	998,874
Net Promoter Score (“NPS”)		84			89			91
_{(1) – Corporate Productivity is New Business Production per Agent (Corporate): The New Business Revenue collected related to corporate sales, divided by the average number of full-time corporate sales agents for the same period. This calculation excludes interns, part-time sales agents and partial full-time equivalent sales managers.}
_{(2) – Franchise Productivity is New Business Production per Franchise: The gross commissions paid by Carriers and Agency Fees received related to policies in their first term sold by franchise sales agents, divided by the average number of franchises for the same period, prior to paying Royalty Fees to the Company.}

The MIL Network –

July 24, 2025

MIL-OSI: Mobile Infrastructure Announces Timing of Second Quarter 2025 Earnings Release and Conference Call

Source: GlobeNewswire (MIL-OSI)

CINCINNATI, July 23, 2025 (GLOBE NEWSWIRE) — Mobile Infrastructure Corporation [Nasdaq: BEEP], owners of a diversified portfolio of parking assets throughout the United States, will issue its second quarter 2025 earnings release after the U.S. market closes on Tuesday, August 12, 2025.

You are invited to participate in the Company’s conference call hosted by senior management on Tuesday, August 12, 2025, at 4:30 PM Eastern Time.

Q2 2025 Conference Call Date & Time:
Tuesday, August 12, 2025, at 4:30 PM Eastern Time

Participants who wish to access the live conference call may do so by registering here. Upon registration, a dial-in and unique PIN will be provided to join the call.

A live, listen-only webcast of the conference call may be accessed from the Investor Relations section of the Company’s website, or by registering here.

For those who are unable to listen to the live broadcast, a replay of the webcast will be available in the “News & Events” section of the Investor Relations website under “IR Calendar” for one year.

About Mobile Infrastructure Corporation

Mobile Infrastructure Corporation, headquartered in Cincinnati, Ohio, focuses on acquiring, owning, and optimizing parking facilities and related infrastructure, including parking lots, parking garages, and other parking structures throughout the United States. The Company was recently added to the Russell 2000^® Index, reflecting its growing presence in the public markets. For more information, visit mobileit.com.

Contact:

Stephanie Hogue
President
646-471-0056

Lynn Morgen
Casey Kotary
ADVISIRY Partners
212-750-5800

The MIL Network –

July 24, 2025

MIL-OSI: LiveRamp to Discuss First Quarter FY26 Financial Results

Source: GlobeNewswire (MIL-OSI)

SAN FRANCISCO, July 23, 2025 (GLOBE NEWSWIRE) — LiveRamp® (NYSE: RAMP), the leading global data collaboration platform, today announced that its fiscal 2026 first quarter financial results will be released on Wednesday, August 6, 2025 after the financial markets close. A conference call to discuss the results will be held on the same day at 1:30 p.m. PT.

A live webcast of the conference call can be accessed on the LiveRamp Investor Relations website.

Additionally, the conference call can be accessed via the telephone by dialing (800) 715-9871 or (646) 307-1963. The conference call ID is 5883383.

To automatically receive LiveRamp financial news by email, please visit the company’s Investor Relations website and subscribe to email alerts.

About LiveRamp

LiveRamp is a leading data collaboration technology company, empowering marketers and media owners to deliver and measure marketing performance everywhere it matters. LiveRamp’s data collaboration network seamlessly unites data across advertisers, platforms, publishers, data providers, and commerce media networks—unlocking deep insights, delivering transformational consumer experiences, and driving measurable growth.

Built on a foundation of strict neutrality, interoperability, and global scale, LiveRamp enables organizations to maximize the value of their data while accelerating innovation. Trusted by many of the world’s leading brands, retailers, financial services providers, and healthcare innovators, LiveRamp is helping shape the future of responsible data collaboration in an AI-driven, outcomes-focused world where advertisers reach intended audiences and consumers receive more relevant advertising messages.

LiveRamp is headquartered in San Francisco, California, with offices worldwide. Learn more at LiveRamp.com.

For more information, contact:
Drew Borst
LiveRamp Investor Relations
Investor.Relations@LiveRamp.com

The MIL Network –

July 24, 2025

MIL-OSI: First Merchants Corporation Announces Second Quarter 2025 Earnings Per Share

Source: GlobeNewswire (MIL-OSI)

MUNCIE, Ind., July 23, 2025 (GLOBE NEWSWIRE) — First Merchants Corporation (NASDAQ – FRME)

Second Quarter 2025 Highlights:

Net income available to common stockholders was $56.4 million and diluted earnings per common share totaled $0.98 in the second quarter of 2025, compared to $39.5 million and $0.68 in the second quarter of 2024, and $54.9 million and $0.94 in the first quarter of 2025.
Robust capital position with Common Equity Tier 1 Capital Ratio of 11.35%.
Repurchased 818,480 shares totaling $31.7 million year-to-date; Repurchased 582,486 shares totaling $22.1 million during the second quarter.
Total loans grew $297.6 million, or 9.1% annualized, on a linked quarter basis, and $653.6 million, or 5.2%, during the last twelve months.
Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis.
Nonperforming assets to total assets were 36 basis points compared to 47 basis points on a linked quarter basis.
The efficiency ratio totaled 53.99% for the quarter.

“Our strong balance sheet and earnings growth in the first half of the year underscore the strength and resilience of our business model,” said Mark Hardwick, Chief Executive Officer of First Merchants Bank. “With continued momentum in loan and deposit growth, expanding margins, disciplined expense management, and a robust capital position, we are well-positioned to deliver long-term value for our shareholders. We remain committed to supporting our clients and communities while navigating a dynamic economic environment with confidence and clarity.”

Second Quarter Financial Results:

First Merchants Corporation (the “Corporation) reported second quarter 2025 net income available to common stockholders of $56.4 million compared to $39.5 million during the same period in 2024. Diluted earnings per common share for the period totaled $0.98 per share compared to the second quarter of 2024 result of $0.68 per share.

Total assets equaled $18.6 billion as of quarter-end and loans totaled $13.3 billion. During the past twelve months, total loans grew by $653.6 million, or 5.2%. On a linked quarter basis, loans grew $297.6 million, or 9.1% with growth primarily in Commercial & Industrial loans.

Investments, totaling $3.4 billion, decreased $372.1 million, or 9.9%, during the last twelve months and decreased $46.2 million, or 5.4% annualized, on a linked quarter basis. The decline in the last twelve months reflected sales of available for sale securities in 2024 totaling $268.5 million.

Total deposits equaled $14.8 billion as of quarter-end and increased by $228.5 million, or 1.6%, over the past twelve months. Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis. The loan to deposit ratio of 90.1% at period end remained stable on a linked quarter basis.

The Corporation’s Allowance for Credit Losses – Loans (ACL) totaled $195.3 million as of quarter-end, or 1.47% of total loans. Net charge-offs totaled $2.3 million and provision for credit losses of $5.6 million was recorded during the quarter. Reserves for unfunded commitments totaling $18.0 million remain unchanged from the previous quarter. Non-performing assets to total assets were 0.36% for the second quarter of 2025, a decrease of 11 basis points compared to 0.47% in the linked quarter.

Net interest income, totaling $133.0 million for the quarter, increased $2.7 million, or 2.1%, compared to prior quarter and increased $4.4 million, or 3.5% compared to the second quarter of 2024. Fully taxable equivalent net interest margin was 3.25%, an increase of three basis points compared to the first quarter of 2025 and an increase of nine basis points compared to the second quarter of 2024. During the quarter, higher yields on earnings assets outpaced increased yields on interest bearing liabilities resulting in margin expansion.

Noninterest income totaled $31.3 million for the quarter, an increase of $1.3 million, compared to the first quarter of 2025 and was stable compared to the second quarter of 2024. The increase over first quarter of 2025 was driven primarily by higher gains on the sales of loans, treasury management fees, derivative hedge fees, and card payment fees offset by a decrease in other income associated with CRA investments.

Noninterest expense totaled $93.6 million for the quarter, an increase of $0.7 million from the first quarter of 2025. The increase was from higher marketing and data processing costs.

The Corporation’s total risk-based capital ratio equaled 13.06%, the common equity tier 1 capital ratio equaled 11.35%, and the tangible common equity ratio totaled 8.92%. These ratios continue to reflect the Corporation’s strong liquidity and capital positions.

CONFERENCE CALL

First Merchants Corporation will conduct a second quarter earnings conference call and web cast at 9:00 a.m. (ET) on Thursday, July 24, 2025.

To access via phone, participants will need to register using the following link where they will be provided a phone number and access code: (https://register-conf.media-server.com/register/BI605c2e360ce04cfc9c4221bda7f67a49)

To view the webcast and presentation slides, please go to (https://edge.media-server.com/mmc/p/ced58zg3) during the time of the call. A replay of the webcast will be available until July 24, 2026.

Detailed financial results are reported on the attached pages.

About First Merchants Corporation

First Merchants Corporation is a financial holding company headquartered in Muncie, Indiana. The Corporation has one full-service bank charter, First Merchants Bank. The Bank also operates as First Merchants Private Wealth Advisors (as a division of First Merchants Bank).

First Merchants Corporation’s common stock is traded on the NASDAQ Global Select Market System under the symbol FRME. Quotations are carried in daily newspapers and can be found on the company’s Internet web page (http://www.firstmerchants.com).

FIRST MERCHANTS and the Shield Logo are federally registered trademarks of First Merchants Corporation.

Forward-Looking Statements

This release contains forward-looking statements made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. These statements include statements about First Merchants’ goals, intentions and expectations; statements regarding the First Merchants’ business plan and growth strategies; statements regarding the asset quality of First Merchants’ loan and investment portfolios; and estimates of First Merchants’ risks and future costs and benefits. These forward-looking statements are subject to significant risks, assumptions and uncertainties that may cause results to differ materially from those set forth in forward-looking statements, including, among other things: possible changes in monetary and fiscal policies, and laws and regulations; the effects of easing restrictions on participants in the financial services industry; the cost and other effects of legal and administrative cases; possible changes in the credit worthiness of customers and the possible impairment of collectability of loans; fluctuations in market rates of interest; competitive factors in the banking industry; changes in the banking legislation or regulatory requirements of federal and state agencies applicable to bank holding companies and banks like First Merchants’ affiliate bank; continued availability of earnings and excess capital sufficient for the lawful and prudent declaration of dividends; changes in market, economic, operational, liquidity (including the ability to grow and maintain core deposits and retain large, uninsured deposits), credit and interest rate risks associated with the First Merchants’ business; and other risks and factors identified in each of First Merchants’ filings with the Securities and Exchange Commission. First Merchants does not undertake any obligation to update any forward-looking statements, whether written or oral, relating to the matters discussed in this press release. In addition, First Merchants’ past results of operations do not necessarily indicate its anticipated future results.


CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	June 30,
		2025			2024
ASSETS
Cash and due from banks	$	81,567		$	105,372
Interest-bearing deposits		223,343			168,528
Investment securities available for sale		1,358,130			1,618,893
Investment securities held to maturity, net of allowance for credit losses		2,022,826			2,134,195
Loans held for sale		28,783			32,292
Loans		13,296,759			12,639,650
Less: Allowance for credit losses – loans		(195,316	)		(189,537	)
Net loans		13,101,443			12,450,113
Premises and equipment		122,808			133,245
Federal Home Loan Bank stock		47,290			41,738
Interest receivable		93,258			97,546
Goodwill		712,002			712,002
Other intangibles		16,797			23,371
Cash surrender value of life insurance		305,695			306,379
Other real estate owned		177			4,824
Tax asset, deferred and receivable		97,749			107,080
Other assets		380,909			367,845
TOTAL ASSETS	$	18,592,777		$	18,303,423
LIABILITIES
Deposits:
Noninterest-bearing	$	2,197,416		$	2,303,313
Interest-bearing		12,600,162			12,265,757
Total Deposits		14,797,578			14,569,070
Borrowings:
Federal funds purchased		85,000			147,229
Securities sold under repurchase agreements		114,758			100,451
Federal Home Loan Bank advances		898,702			832,703
Subordinated debentures and other borrowings		62,617			93,589
Total Borrowings		1,161,077			1,173,972
Interest payable		16,174			18,554
Other liabilities		269,996			329,302
Total Liabilities		16,244,825			16,090,898
STOCKHOLDERS’ EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized — 600 cumulative shares
Issued and outstanding – 125 cumulative shares		125			125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized — 10,000 non-cumulative perpetual shares
Issued and outstanding – 10,000 non-cumulative perpetual shares		25,000			25,000
Common Stock, $.125 stated value:
Authorized — 100,000,000 shares
Issued and outstanding – 57,272,433 and 58,045,653 shares		7,159			7,256
Additional paid-in capital		1,163,170			1,191,193
Retained earnings		1,342,473			1,200,930
Accumulated other comprehensive loss		(189,975	)		(211,979	)
Total Stockholders’ Equity		2,347,952			2,212,525
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,592,777		$	18,303,423

CONSOLIDATED STATEMENTS OF INCOME	Three Months Ended						Six Months Ended
(Dollars In Thousands, Except Per Share Amounts)	June 30,						June 30,
		2025			2024			2025			2024
INTEREST INCOME
Loans:
Taxable	$	195,173		$	201,413		$	382,901		$	399,436
Tax-exempt		10,805			8,430			21,337			16,620
Investment securities:
Taxable		8,266			9,051			16,638			17,799
Tax-exempt		12,516			13,613			25,033			27,224
Deposits with financial institutions		1,892			2,995			4,264			9,488
Federal Home Loan Bank stock		1,083			879			2,080			1,714
Total Interest Income		229,735			236,381			452,253			472,281
INTEREST EXPENSE
Deposits		84,241			99,151			164,788			197,436
Federal funds purchased		965			126			1,777			126
Securities sold under repurchase agreements		663			645			1,405			1,677
Federal Home Loan Bank advances		9,714			6,398			19,078			13,171
Subordinated debentures and other borrowings		1,138			1,490			1,921			4,237
Total Interest Expense		96,721			107,810			188,969			216,647
NET INTEREST INCOME		133,014			128,571			263,284			255,634
Provision for credit losses		5,600			24,500			9,800			26,500
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		127,414			104,071			253,484			229,134
NONINTEREST INCOME
Service charges on deposit accounts		8,566			8,214			16,638			16,121
Fiduciary and wealth management fees		8,831			8,825			17,475			17,025
Card payment fees		4,932			4,739			9,458			9,239
Net gains and fees on sales of loans		5,849			5,141			10,871			8,395
Derivative hedge fees		831			489			1,235			752
Other customer fees		401			460			816			887
Earnings on cash surrender value of life insurance		1,913			1,929			4,092			3,521
Net realized losses on sales of available for sale securities		(1	)		(49	)		(8	)		(51	)
Other income (loss)		(19	)		1,586			774			2,083
Total Noninterest Income		31,303			31,334			61,351			57,972
NONINTEREST EXPENSES
Salaries and employee benefits		54,527			52,214			109,509			110,507
Net occupancy		6,845			6,746			14,061			14,058
Equipment		6,927			6,599			13,935			12,825
Marketing		1,997			1,773			3,350			2,971
Outside data processing fees		7,107			7,072			13,036			13,961
Printing and office supplies		272			354			619			707
Intangible asset amortization		1,505			1,771			3,031			3,728
FDIC assessments		3,552			3,278			7,200			7,565
Other real estate owned and foreclosure expenses		29			373			629			907
Professional and other outside services		3,741			3,822			7,002			7,774
Other expenses		7,096			7,411			14,128			13,345
Total Noninterest Expenses		93,598			91,413			186,500			188,348
INCOME BEFORE INCOME TAX		65,119			43,992			128,335			98,758
Income tax expense		8,287			4,067			16,164			10,892
NET INCOME		56,832			39,925			112,171			87,866
Preferred stock dividends		469			469			938			938
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	56,363		$	39,456		$	111,233		$	86,928


PER SHARE DATA:
Basic Net Income Available to Common Stockholders	$	0.98		$	0.68		$	1.93		$	1.48
Diluted Net Income Available to Common Stockholders	$	0.98		$	0.68		$	1.92		$	1.48
Cash Dividends Paid to Common Stockholders	$	0.36		$	0.35		$	0.71		$	0.69
Tangible Common Book Value Per Share	$	27.90		$	25.10		$	27.90		$	25.10
Average Diluted Common Shares Outstanding (in thousands)		57,773			58,328			58,005			58,800

FINANCIAL HIGHLIGHTS
(Dollars In Thousands)	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2025			2024			2025			2024
NET CHARGE-OFFS	$	2,315		$	39,644		$	7,241		$	41,897

AVERAGE BALANCES:
Total Assets	$	18,508,785		$	18,332,159		$	18,425,723		$	18,381,340
Total Loans		13,211,729			12,620,530			13,077,288			12,548,798
Total Earning Assets		17,158,984			17,013,984			17,060,278			17,068,917
Total Deposits		14,632,113			14,895,867			14,526,314			14,888,536
Total Stockholders’ Equity		2,340,010			2,203,361			2,340,440			2,222,750

FINANCIAL RATIOS:
Return on Average Assets		1.23	%		0.87	%		1.22	%		0.96	%
Return on Average Stockholders’ Equity		9.63			7.16			9.51			7.82
Return on Tangible Common Stockholders’ Equity		14.49			11.29			14.30			12.26
Average Earning Assets to Average Assets		92.71			92.81			92.59			92.86
Allowance for Credit Losses – Loans as % of Total Loans		1.47			1.50			1.47			1.50
Net Charge-offs as % of Average Loans (Annualized)		0.07			1.26			0.11			0.67
Average Stockholders’ Equity to Average Assets		12.64			12.02			12.70			12.09
Tax Equivalent Yield on Average Earning Assets		5.50			5.69			5.45			5.67
Interest Expense/Average Earning Assets		2.25			2.53			2.22			2.54
Net Interest Margin (FTE) on Average Earning Assets		3.25			3.16			3.23			3.13
Efficiency Ratio		53.99			53.84			54.26			56.47

ASSET QUALITY
(Dollars In Thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
Nonaccrual Loans	$	67,358		$	81,922		$	73,773		$	59,088		$	61,906
Other Real Estate Owned and Repossessions		177			4,966			4,948			5,247			4,824
Nonperforming Assets (NPA)		67,535			86,888			78,721			64,335			66,730
90+ Days Delinquent		4,443			4,280			5,902			14,105			1,686
NPAs & 90 Day Delinquent	$	71,978		$	91,168		$	84,623		$	78,440		$	68,416

Allowance for Credit Losses – Loans	$	195,316		$	192,031		$	192,757		$	187,828		$	189,537
Quarterly Net Charge-offs		2,315			4,926			771			6,709			39,644
NPAs / Actual Assets %		0.36	%		0.47	%		0.43	%		0.35	%		0.36	%
NPAs & 90 Day / Actual Assets %		0.39	%		0.49	%		0.46	%		0.43	%		0.37	%
NPAs / Actual Loans and OREO %		0.51	%		0.67	%		0.61	%		0.51	%		0.53	%
Allowance for Credit Losses – Loans / Actual Loans (%)		1.47	%		1.47	%		1.50	%		1.48	%		1.50	%
Quarterly Net Charge-offs as % of Average Loans (Annualized)		0.07	%		0.15	%		0.02	%		0.21	%		1.26	%

CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
ASSETS
Cash and due from banks	$	81,567		$	86,113		$	87,616		$	84,719		$	105,372
Interest-bearing deposits		223,343			331,534			298,891			359,126			168,528
Investment securities available for sale		1,358,130			1,378,489			1,386,475			1,553,496			1,618,893
Investment securities held to maturity, net of allowance for credit losses		2,022,826			2,048,632			2,074,220			2,108,649			2,134,195
Loans held for sale		28,783			23,004			18,663			40,652			32,292
Loans		13,296,759			13,004,905			12,854,359			12,646,808			12,639,650
Less: Allowance for credit losses – loans		(195,316	)		(192,031	)		(192,757	)		(187,828	)		(189,537	)
Net loans		13,101,443			12,812,874			12,661,602			12,458,980			12,450,113
Premises and equipment		122,808			128,749			129,743			129,582			133,245
Federal Home Loan Bank stock		47,290			45,006			41,690			41,716			41,738
Interest receivable		93,258			88,352			91,829			92,055			97,546
Goodwill		712,002			712,002			712,002			712,002			712,002
Other intangibles		16,797			18,302			19,828			21,599			23,371
Cash surrender value of life insurance		305,695			304,918			304,906			304,613			306,379
Other real estate owned		177			4,966			4,948			5,247			4,824
Tax asset, deferred and receivable		97,749			87,665			92,387			86,732			107,080
Other assets		380,909			369,181			387,169			348,384			367,845
TOTAL ASSETS	$	18,592,777		$	18,439,787		$	18,311,969		$	18,347,552		$	18,303,423
LIABILITIES
Deposits:
Noninterest-bearing	$	2,197,416		$	2,185,057		$	2,325,579		$	2,334,197		$	2,303,313
Interest-bearing		12,600,162			12,276,921			12,196,047			12,030,903			12,265,757
Total Deposits		14,797,578			14,461,978			14,521,626			14,365,100			14,569,070
Borrowings:
Federal funds purchased		85,000			185,000			99,226			30,000			147,229
Securities sold under repurchase agreements		114,758			122,947			142,876			124,894			100,451
Federal Home Loan Bank advances		898,702			972,478			822,554			832,629			832,703
Subordinated debentures and other borrowings		62,617			62,619			93,529			93,562			93,589
Total Borrowings		1,161,077			1,343,044			1,158,185			1,081,085			1,173,972
Deposits and other liabilities held for sale		—			—			—			288,476			—
Interest payable		16,174			13,304			16,102			18,089			18,554
Other liabilities		269,996			289,247			311,073			292,429			329,302
Total Liabilities		16,244,825			16,107,573			16,006,986			16,045,179			16,090,898
STOCKHOLDERS’ EQUITY
Preferred Stock, $1,000 par value, $1,000 liquidation value:
Authorized — 600 cumulative shares
Issued and outstanding – 125 cumulative shares		125			125			125			125			125
Preferred Stock, Series A, no par value, $2,500 liquidation preference:
Authorized — 10,000 non-cumulative perpetual shares
Issued and outstanding – 10,000 non-cumulative perpetual shares		25,000			25,000			25,000			25,000			25,000
Common Stock, $.125 stated value:
Authorized — 100,000,000 shares
Issued and outstanding		7,159			7,226			7,247			7,265			7,256
Additional paid-in capital		1,163,170			1,183,263			1,188,768			1,192,683			1,191,193
Retained earnings		1,342,473			1,306,911			1,272,528			1,229,125			1,200,930
Accumulated other comprehensive loss		(189,975	)		(190,311	)		(188,685	)		(151,825	)		(211,979	)
Total Stockholders’ Equity		2,347,952			2,332,214			2,304,983			2,302,373			2,212,525
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,592,777		$	18,439,787		$	18,311,969		$	18,347,552		$	18,303,423

CONSOLIDATED STATEMENTS OF INCOME
(Dollars In Thousands, Except Per Share Amounts)	June 30,				March 31,				December 31,				September 30,				June 30,
	2025				2025				2024				2024				2024
INTEREST INCOME
Loans:
Taxable	$	195,173			$	187,728			$	197,536			$	206,680			$	201,413
Tax-exempt		10,805				10,532				9,020				8,622				8,430
Investment securities:
Taxable		8,266				8,372				9,024				9,263				9,051
Tax-exempt		12,516				12,517				12,754				13,509				13,613
Deposits with financial institutions		1,892				2,372				5,350				2,154				2,995
Federal Home Loan Bank stock		1,083				997				958				855				879
Total Interest Income		229,735				222,518				234,642				241,083				236,381
INTEREST EXPENSE
Deposits		84,241				80,547				89,835				98,856				99,151
Federal funds purchased		965				812				26				329				126
Securities sold under repurchase agreements		663				742				680				700				645
Federal Home Loan Bank advances		9,714				9,364				8,171				8,544				6,398
Subordinated debentures and other borrowings		1,138				783				1,560				1,544				1,490
Total Interest Expense		96,721				92,248				100,272				109,973				107,810
NET INTEREST INCOME		133,014				130,270				134,370				131,110				128,571
Provision for credit losses		5,600				4,200				4,200				5,000				24,500
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		127,414				126,070				130,170				126,110				104,071
NONINTEREST INCOME
Service charges on deposit accounts		8,566				8,072				8,124				8,361				8,214
Fiduciary and wealth management fees		8,831				8,644				8,665				8,525				8,825
Card payment fees		4,932				4,526				4,957				5,121				4,739
Net gains and fees on sales of loans		5,849				5,022				5,681				6,764				5,141
Derivative hedge fees		831				404				1,594				736				489
Other customer fees		401				415				316				344				460
Earnings on cash surrender value of life insurance		1,913				2,179				2,188				2,755				1,929
Net realized losses on sales of available for sale securities		(1	)			(7	)			(11,592	)			(9,114	)			(49	)
Gain on branch sale		—				—				19,983				—				—
Other income (loss)		(19	)			793				2,826				1,374				1,586
Total Noninterest Income		31,303				30,048				42,742				24,866				31,334
NONINTEREST EXPENSES
Salaries and employee benefits		54,527				54,982				55,437				55,223				52,214
Net occupancy		6,845				7,216				7,335				6,994				6,746
Equipment		6,927				7,008				7,028				6,949				6,599
Marketing		1,997				1,353				2,582				1,836				1,773
Outside data processing fees		7,107				5,929				6,029				7,150				7,072
Printing and office supplies		272				347				377				378				354
Intangible asset amortization		1,505				1,526				1,771				1,772				1,771
FDIC assessments		3,552				3,648				3,744				3,720				3,278
Other real estate owned and foreclosure expenses		29				600				227				942				373
Professional and other outside services		3,741				3,261				3,777				3,035				3,822
Other expenses		7,096				7,032				7,982				6,630				7,411
Total Noninterest Expenses		93,598				92,902				96,289				94,629				91,413
INCOME BEFORE INCOME TAX		65,119				63,216				76,623				56,347				43,992
Income tax expense		8,287				7,877				12,274				7,160				4,067
NET INCOME		56,832				55,339				64,349				49,187				39,925
Preferred stock dividends		469				469				469				468				469
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS	$	56,363			$	54,870			$	63,880			$	48,719			$	39,456


PER SHARE DATA:
Basic Net Income Available to Common Stockholders	$	0.98			$	0.95			$	1.10			$	0.84			$	0.68
Diluted Net Income Available to Common Stockholders	$	0.98			$	0.94			$	1.10			$	0.84			$	0.68
Cash Dividends Paid to Common Stockholders	$	0.36			$	0.35			$	0.35			$	0.35			$	0.35
Tangible Common Book Value Per Share	$	27.90			$	27.34			$	26.78			$	26.64			$	25.10
Average Diluted Common Shares Outstanding (in thousands)		57,773				58,242				58,247				58,289				58,328
FINANCIAL RATIOS:
Return on Average Assets		1.23		%		1.21		%		1.39		%		1.07		%		0.87		%
Return on Average Stockholders’ Equity		9.63				9.38				11.05				8.66				7.16
Return on Tangible Common Stockholders’ Equity		14.49				14.12				16.75				13.39				11.29
Average Earning Assets to Average Assets		92.71				92.47				92.48				92.54				92.81
Allowance for Credit Losses – Loans as % of Total Loans		1.47				1.47				1.50				1.48				1.50
Net Charge-offs as % of Average Loans (Annualized)		0.07				0.15				0.02				0.21				1.26
Average Stockholders’ Equity to Average Assets		12.64				12.76				12.51				12.26				12.02
Tax Equivalent Yield on Average Earning Assets		5.50				5.39				5.63				5.82				5.69
Interest Expense/Average Earning Assets		2.25				2.17				2.35				2.59				2.53
Net Interest Margin (FTE) on Average Earning Assets		3.25				3.22				3.28				3.23				3.16
Efficiency Ratio		53.99				54.54				48.48				53.76				53.84

LOANS
(Dollars In Thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Commercial and industrial loans	$	4,440,924		$	4,306,597		$	4,114,292		$	4,041,217		$	3,949,817
Agricultural land, production and other loans to farmers		265,172			243,864			256,312			238,743			239,926
Real estate loans:
Construction		836,033			793,175			792,144			814,704			823,267
Commercial real estate, non-owner occupied		2,171,092			2,177,869			2,274,016			2,251,351			2,323,533
Commercial real estate, owner occupied		1,226,797			1,214,739			1,157,944			1,152,751			1,174,195
Residential		2,397,094			2,389,852			2,374,729			2,366,943			2,370,905
Home equity		673,961			650,499			659,811			641,188			631,104
Individuals’ loans for household and other personal expenditures		141,045			140,954			166,028			158,480			162,089
Public finance and other commercial loans		1,144,641			1,087,356			1,059,083			981,431			964,814
Loans		13,296,759			13,004,905			12,854,359			12,646,808			12,639,650
Allowance for credit losses – loans		(195,316	)		(192,031	)		(192,757	)		(187,828	)		(189,537	)
NET LOANS	$	13,101,443		$	12,812,874		$	12,661,602		$	12,458,980		$	12,450,113


DEPOSITS
(Dollars In Thousands)	June 30,			March 31,			December 31,			September 30,			June 30,
		2025			2025			2024			2024			2024
Demand deposits	$	7,798,695		$	7,786,554		$	7,980,061		$	7,678,510		$	7,757,679
Savings deposits		4,984,659			4,791,874			4,522,758			4,302,236			4,339,161
Certificates and other time deposits of $100,000 or less		617,857			625,203			692,068			802,949			889,949
Certificates and other time deposits of $100,000 or more		891,139			896,143			1,043,068			1,277,833			1,415,131
Brokered certificates of deposits¹		505,228			362,204			283,671			303,572			167,150
TOTAL DEPOSITS	$	14,797,578		$	14,461,978		$	14,521,626		$	14,365,100		$	14,569,070

^{1 –} Total brokered deposits of $1.2 billion, which includes brokered CD’s of $505.2 million at June 30, 2025.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)
	Three Months Ended
	June 30, 2025						June 30, 2024
	Average Balance		Interest Income / Expense		Average Rate		Average Balance		Interest Income / Expense		Average Rate
ASSETS
Interest-bearing deposits	$	252,613	$	1,892	3.00	%	$	322,647	$	2,995	3.71	%
Federal Home Loan Bank stock		46,598		1,083	9.30			41,749		879	8.42
Investment Securities: ⁽¹⁾
Taxable		1,605,718		8,266	2.06			1,788,749		9,051	2.02
Tax-exempt ⁽²⁾		2,042,326		15,843	3.10			2,240,309		17,232	3.08
Total Investment Securities		3,648,044		24,109	2.64			4,029,058		26,283	2.61
Loans held for sale		25,411		389	6.12			28,585		431	6.03
Loans: ⁽³⁾
Commercial		9,006,650		154,108	6.84			8,691,746		160,848	7.40
Real estate mortgage		2,200,521		25,062	4.56			2,150,591		23,799	4.43
HELOC and installment		834,901		15,614	7.48			823,417		16,335	7.94
Tax-exempt ⁽²⁾		1,144,246		13,677	4.78			926,191		10,670	4.61
Total Loans		13,211,729		208,850	6.32			12,620,530		212,083	6.72
Total Earning Assets		17,158,984		235,934	5.50	%		17,013,984		242,240	5.69	%
Total Non-Earning Assets		1,349,801						1,318,175
TOTAL ASSETS	$	18,508,785					$	18,332,159
LIABILITIES
Interest-Bearing Deposits:
Interest-bearing deposits	$	5,545,158	$	35,303	2.55	%	$	5,586,549	$	40,994	2.94	%
Money market deposits		3,613,952		28,714	3.18			3,036,398		27,230	3.59
Savings deposits		1,282,951		2,513	0.78			1,508,734		3,476	0.92
Certificates and other time deposits		2,003,682		17,711	3.54			2,414,967		27,451	4.55
Total Interest-Bearing Deposits		12,445,743		84,241	2.71			12,546,648		99,151	3.16
Borrowings		1,250,519		12,480	3.99			885,919		8,659	3.91
Total Interest-Bearing Liabilities		13,696,262		96,721	2.82			13,432,567		107,810	3.21
Noninterest-bearing deposits		2,186,370						2,349,219
Other liabilities		286,143						347,012
Total Liabilities		16,168,775						16,128,798
STOCKHOLDERS’ EQUITY		2,340,010						2,203,361
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,508,785					$	18,332,159
Net Interest Income (FTE)			$	139,213					$	134,430
Net Interest Spread (FTE) ⁽⁴⁾					2.68	%					2.48	%

Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets					5.50	%					5.69	%
Interest Expense / Average Earning Assets					2.25	%					2.53	%
Net Interest Margin (FTE) ⁽⁵⁾					3.25	%					3.16	%

⁽¹⁾ Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
⁽²⁾ Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $6,199 and $5,859 for the three months ended June 30, 2025 and 2024, respectively.
⁽³⁾ Non accruing loans have been included in the average balances.
⁽⁴⁾ Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
⁽⁵⁾ Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

CONSOLIDATED AVERAGE BALANCE SHEET AND NET INTEREST MARGIN ANALYSIS
(Dollars In Thousands)
	Six Months Ended
	June 30, 2025						June 30, 2024
	Average Balance		Interest Income / Expense		Average Rate		Average Balance		Interest Income / Expense		Average Rate
ASSETS
Interest-bearing deposits	$	273,200	$	4,264	3.12	%	$	449,173	$	9,488	4.22	%
Federal Home Loan Bank stock		45,296		2,080	9.18			41,757		1,714	8.21
Investment Securities: ⁽¹⁾
Taxable		1,620,005		16,638	2.05			1,785,903		17,799	1.99
Tax-exempt ⁽²⁾		2,044,489		31,687	3.10			2,243,286		34,461	3.07
Total Investment Securities		3,664,494		48,325	2.64			4,029,189		52,260	2.59
Loans held for sale		23,190		708	6.11			25,184		759	6.03
Loans: ⁽³⁾
Commercial		8,889,119		301,880	6.79			8,644,927		320,057	7.40
Real estate mortgage		2,195,988		49,508	4.51			2,140,769		46,156	4.31
HELOC and installment		831,904		30,805	7.41			822,616		32,464	7.89
Tax-exempt ⁽²⁾		1,137,087		27,009	4.75			915,302		21,038	4.60
Total Loans		13,077,288		409,910	6.27			12,548,798		420,474	6.70
Total Earning Assets		17,060,278		464,579	5.45	%		17,068,917		483,936	5.67	%
Total Non-Earning Assets		1,365,445						1,312,423
TOTAL ASSETS	$	18,425,723					$	18,381,340
LIABILITIES
Interest-Bearing deposits:
Interest-bearing deposits	$	5,533,858	$	69,909	2.53	%	$	5,503,185	$	80,484	2.92	%
Money market deposits		3,526,461		54,666	3.10			3,040,938		54,613	3.59
Savings deposits		1,291,133		4,958	0.77			1,534,305		7,277	0.95
Certificates and other time deposits		1,975,923		35,255	3.57			2,421,413		55,062	4.55
Total Interest-Bearing Deposits		12,327,375		164,788	2.67			12,499,841		197,436	3.16
Borrowings		1,256,688		24,181	3.85			948,866		19,211	4.05
Total Interest-Bearing Liabilities		13,584,063		188,969	2.78			13,448,707		216,647	3.22
Noninterest-bearing deposits		2,198,939						2,388,695
Other liabilities		302,281						321,188
Total Liabilities		16,085,283						16,158,590
STOCKHOLDERS’ EQUITY		2,340,440						2,222,750
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	18,425,723					$	18,381,340
Net Interest Income (FTE)			$	275,610					$	267,289
Net Interest Spread (FTE) ⁽⁴⁾					2.67	%					2.45	%

Net Interest Margin (FTE):
Interest Income (FTE) / Average Earning Assets					5.45	%					5.67	%
Interest Expense / Average Earning Assets					2.22	%					2.54	%
Net Interest Margin (FTE) ⁽⁵⁾					3.23	%					3.13	%

⁽¹⁾ Average balance of securities is computed based on the average of the historical amortized cost balances without the effects of the fair value adjustments. Annualized amounts are computed using a 30/360 day basis.
⁽²⁾ Tax-exempt securities and loans are presented on a fully taxable equivalent basis, using a marginal tax rate of 21 percent for 2025 and 2024. These totals equal $12,326 and $11,655 for the six months ended June 30, 2025 and 2024, respectively.
⁽³⁾ Non accruing loans have been included in the average balances.
⁽⁴⁾ Net Interest Spread (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average interest-bearing liabilities.
⁽⁵⁾ Net Interest Margin (FTE) is interest income expressed as a percentage of average earning assets minus interest expense expressed as a percentage of average earning assets.

ADJUSTED NET INCOME AND DILUTED EARNINGS PER COMMON SHARE – NON-GAAP
(Dollars In Thousands, Except Per Share Amounts)	Three Months Ended																			Six Months Ended
	June 30,			March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
	2025			2025				2024				2024				2024				2025				2024
Net Income Available to Common Stockholders – GAAP	$	56,363		$	54,870			$	63,880			$	48,719			$	39,456			$	111,233			$	86,928
Adjustments:
Net realized losses on sales of available for sale securities		1			7				11,592				9,114				49				8				51
Gain on branch sale		—			—				(19,983	)			—				—				—				—
Non-core expenses^1,2		—			—				762				—				—				—				3,481
Tax on adjustments		—			(2	)			1,851				(2,220	)			(12	)			(2	)			(860	)
Adjusted Net Income Available to Common Stockholders – Non-GAAP	$	56,364		$	54,875			$	58,102			$	55,613			$	39,493			$	111,239			$	89,600

Average Diluted Common Shares Outstanding (in thousands)		57,773			58,242				58,247				58,289				58,328				58,005				58,800

Diluted Earnings Per Common Share – GAAP	$	0.98		$	0.94			$	1.10			$	0.84			$	0.68			$	1.92			$	1.48
Adjustments:
Net realized losses on sales of available for sale securities		—			—				0.20				0.15				—				—				—
Gain on branch sale		—			—				(0.34	)			—				—				—				—
Non-core expenses^1,2		—			—				0.01				—				—				—				0.06
Tax on adjustments		—			—				0.03				(0.04	)			—				—				(0.01	)
Adjusted Diluted Earnings Per Common Share – Non-GAAP	$	0.98		$	0.94			$	1.00			$	0.95			$	0.68			$	1.92			$	1.53

¹ – Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
² – Non-core expenses in the Six Months Ended June 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.


NET INTEREST MARGIN (“NIM”), ADJUSTED
(Dollars in Thousands)
	Three Months Ended																			Six Months Ended
	June 30,			March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
	2025			2025				2024				2024				2024				2025				2024
Net Interest Income (GAAP)	$	133,014		$	130,270			$	134,370			$	131,110			$	128,571			$	263,284			$	255,634
Fully Taxable Equivalent (“FTE”) Adjustment		6,199			6,127				5,788				5,883				5,859				12,326				11,655
Net Interest Income (FTE) (non-GAAP)	$	139,213		$	136,397			$	140,158			$	136,993			$	134,430			$	275,610			$	267,289

Average Earning Assets (GAAP)	$	17,158,984		$	16,960,475			$	17,089,198			$	16,990,358			$	17,013,984			$	17,060,278			$	17,068,917
Net Interest Margin (GAAP)		3.10	%		3.07		%		3.15		%		3.09		%		3.02		%		3.09		%		3.00		%
FTE Adjustment		0.15	%		0.15		%		0.13		%		0.14		%		0.14		%		0.14		%		0.13		%
Net Interest Margin (FTE) (non-GAAP)		3.25	%		3.22		%		3.28		%		3.23		%		3.16		%		3.23		%		3.13		%

RETURN ON TANGIBLE COMMON EQUITY – NON-GAAP
(Dollars In Thousands)	Three Months Ended																				Six Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
	2025				2025				2024				2024				2024				2025				2024
Total Average Stockholders’ Equity (GAAP)	$	2,340,010			$	2,340,874			$	2,312,270			$	2,251,547			$	2,203,361			$	2,340,440			$	2,222,750
Less: Average Preferred Stock		(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)			(25,125	)
Less: Average Intangible Assets, Net of Tax		(725,813	)			(726,917	)			(728,218	)			(729,581	)			(730,980	)			(726,362	)			(731,706	)
Average Tangible Common Equity, Net of Tax (Non-GAAP)	$	1,589,072			$	1,588,832			$	1,558,927			$	1,496,841			$	1,447,256			$	1,588,953			$	1,465,919

Net Income Available to Common Stockholders (GAAP)	$	56,363			$	54,870			$	63,880			$	48,719			$	39,456			$	111,233			$	86,928
Plus: Intangible Asset Amortization, Net of Tax		1,188				1,206				1,399				1,399				1,399				2,394				2,945
Tangible Net Income (Non-GAAP)	$	57,551			$	56,076			$	65,279			$	50,118			$	40,855			$	113,627			$	89,873

Return on Tangible Common Equity (Non-GAAP)		14.49		%		14.12		%		16.75		%		13.39		%		11.29		%		14.30		%		12.26		%


EFFICIENCY RATIO – NON-GAAP
(Dollars In Thousands)	Three Months Ended																				Six Months Ended
	June 30,				March 31,				December 31,				September 30,				June 30,				June 30,				June 30,
	2025				2025				2024				2024				2024				2025				2024
Noninterest Expense (GAAP)	$	93,598			$	92,902			$	96,289			$	94,629			$	91,413			$	186,500			$	188,348
Less: Intangible Asset Amortization		(1,505	)			(1,526	)			(1,771	)			(1,772	)			(1,771	)			(3,031	)			(3,728	)
Less: OREO and Foreclosure Expenses		(29	)			(600	)			(227	)			(942	)			(373	)			(629	)			(907	)

Adjusted Noninterest Expense (Non-GAAP)	$	92,064			$	90,776			$	94,291			$	91,915			$	89,269			$	182,840			$	183,713

Net Interest Income (GAAP)	$	133,014			$	130,270			$	134,370			$	131,110			$	128,571			$	263,284			$	255,634
Plus: Fully Taxable Equivalent Adjustment		6,199				6,127				5,788				5,883				5,859				12,326				11,655
Net Interest Income on a Fully Taxable Equivalent Basis (Non-GAAP)	$	139,213			$	136,397			$	140,158			$	136,993			$	134,430			$	275,610			$	267,289

Noninterest Income (GAAP)	$	31,303			$	30,048			$	42,742			$	24,866			$	31,334			$	61,351			$	57,972
Less: Investment Securities (Gains) Losses		1				7				11,592				9,114				49				8				51
Adjusted Noninterest Income (Non-GAAP)	$	31,304			$	30,055			$	54,334			$	33,980			$	31,383			$	61,359			$	58,023
Adjusted Revenue (Non-GAAP)	$	170,517			$	166,452			$	194,492			$	170,973			$	165,813			$	336,969			$	325,312
Efficiency Ratio (Non-GAAP)		53.99		%		54.54		%		48.48		%		53.76		%		53.84		%		54.26		%		56.47		%

Adjusted Noninterest Expense (Non-GAAP)	$	92,064			$	90,776			$	94,291			$	91,915			$	89,269			$	182,840			$	183,713
Less: Non-core Expenses^1,2		—				—				(762	)			—				—				—				(3,481	)
Adjusted Noninterest Expense Excluding Non-core Expenses (Non-GAAP)	$	92,064			$	90,776			$	93,529			$	91,915			$	89,269			$	182,840			$	180,232

Adjusted Revenue (Non-GAAP)	$	170,517			$	166,452			$	194,492			$	170,973			$	165,813			$	336,969			$	325,312
Less: Gain on Branch Sale		—				—				(19,983	)			—				—				—				—
Adjusted Revenue Excluding Gain on Branch Sale (Non-GAAP)	$	170,517			$	166,452			$	174,509			$	170,973			$	165,813			$	336,969			$	325,312

Adjusted Efficiency Ratio (Non-GAAP)		53.99		%		54.54		%		53.60		%		53.76		%		53.84		%		54.26		%		55.40		%

¹ – Non-core expenses in the Three Months Ended December 31, 2024 included $0.8 million of costs directly related to the branch sale.
² – Non-core expenses in the Six Months Ended June 30, 2024 included $2.4 million from duplicative online banking conversion costs and $1.1 million from the FDIC special assessment.

For more information, contact:
Nicole M. Weaver, First Vice President and Director of Corporate Administration
765-521-7619
http://www.firstmerchants.com

SOURCE: First Merchants Corporation, Muncie, Indiana

The MIL Network –

July 24, 2025

MIL-OSI: First Merchants Corporation Announces Second Quarter 2025 Earnings Per Share

Source: GlobeNewswire (MIL-OSI)

MUNCIE, Ind., July 23, 2025 (GLOBE NEWSWIRE) — First Merchants Corporation (NASDAQ – FRME)

Second Quarter 2025 Highlights:

Net income available to common stockholders was $56.4 million and diluted earnings per common share totaled $0.98 in the second quarter of 2025, compared to $39.5 million and $0.68 in the second quarter of 2024, and $54.9 million and $0.94 in the first quarter of 2025.
Robust capital position with Common Equity Tier 1 Capital Ratio of 11.35%.
Repurchased 818,480 shares totaling $31.7 million year-to-date; Repurchased 582,486 shares totaling $22.1 million during the second quarter.
Total loans grew $297.6 million, or 9.1% annualized, on a linked quarter basis, and $653.6 million, or 5.2%, during the last twelve months.
Total deposits increased $335.6 million, or 9.3% annualized, on a linked quarter basis.
Nonperforming assets to total assets were 36 basis points compared to 47 basis points on a linked quarter basis.
The efficiency ratio totaled 53.99% for the quarter.