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Category: United States of America

  • 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 –

  • MIL-OSI USA: Smoke and Wildfires Impacting Road Safety Across Oregon

    Source: US State of Oregon

    strong>SALEM, Ore. – As wildfires continue to impact parts of Oregon, Governor Tina Kotek has declared a State of Emergency, effective July 16, 2025, through December 31, 2025. Travelers are urged to use extra caution on the roads and know the conditions in the areas they are traveling to. Smoke can severely reduce visibility and create dangerous driving conditions. In some areas, wildfire activity has led to road closures or detours. The Oregon Department of Transportation (ODOT), Oregon Department of Emergency Management (OEM), and Oregon Department of Environmental Quality (DEQ) are working together to keep Oregonians safe—and they’re asking the public to do their part before hitting the road.

    “If you’re planning a road trip this summer, make sure your car is ready,” OEM spokesperson, Erin Zysett said. “Start your trip with a full tank of gas or electric charge, check your tires and air conditioner, and know your route. Conditions can change quickly during wildfire season.”

    OEM urges travelers to carry a well-stocked emergency car kit in case they become stranded or delayed. Your kit should include:

    • Jumper cables
    • Flares or a reflective triangle
    • Flashlight and extra batteries
    • First aid kit
    • Blanket
    • Map or printed directions
    • Cell phone and car charger
    • Backup power supply
    • Hand-crank Weather Radio
    • N95 mask (to help filter smoky air)
    • Plastic sheeting and duct tape (to shelter in place if needed)
    • Wet wipes, garbage bags, and toilet paper for sanitation
    • Whistle to signal for help
    • Water and non-perishable snacks
    • Cash or traveler’s checks
    • Portable shovel

    “Smoke affects visibility as well as air quality and can lead to sudden changes in driving conditions,” said Chris Varley, DEQ Spokesperson. “If visibility is poor or the air is hazardous, consider delaying your trip. Your safety comes first. If you must drive in smokey conditions, close all the windows and direct the car’s air system to recirculate to help reduce the amount of smoke entering the car.”

    Before You Go:

    MIL OSI USA News –

  • MIL-OSI USA: Florida Man Sentenced for Decades-Long Scheme to Defraud the IRS

    Source: US State Government of Utah

    A Miami man was sentenced today to 60 months in prison for conspiring to defraud the United States by concealing millions of dollars in assets and income in undisclosed Swiss bank accounts and claiming to the IRS that those assets were not his and instead belonged to foreign nationals.

    The following is according to court documents and statements made in court: between 1985 and 2020, Dan Rotta, a dual Brazilian and U.S. citizen, hid more than $20 million in assets in dozens of secret Swiss accounts at five different Swiss banks, including UBS, Credit Suisse, Bank Bonhôte, and Bank Julius Baer. The accounts were held in his own name, in the names of sham structures, and, in one instance, a pseudonym. Over the years, Rotta earned tens of millions of dollars of income from these assets that he did not report on his tax returns and used to fund his lavish lifestyle. He caused a substantial tax loss to the IRS.

    Rotta employed increasingly elaborate schemes to keep his accounts hidden. Over the years, he kept his accounts open, in part, by falsely representing that he was not a U.S. citizen, leveraging his Brazilian citizenship to claim he was a Brazilian citizen residing in Brazil.

    Starting in 2008, after it was reported publicly that UBS and its bankers were under criminal investigation for helping U.S. taxpayers evade their taxes, Rotta closed his UBS account and moved his funds to Credit Suisse and Bank Bonhôte.

    In 2011, after the IRS obtained records related to one of Rotta’s Swiss accounts, he nominally changed the documentation of his accounts at Credit Suisse and Bank Bonhôte to make it appear that his co-conspirator, a Brazilian national and resident, owned the assets in the accounts. Despite the change, Rotta continued to control the assets and transferred millions of dollars out of those accounts for his use.

    Shortly after Rotta changed the account documentation, the IRS  audited him. During the audit, Rotta falsely denied that he owned the assets in the foreign financial accounts and, instead, claimed that the millions of dollars he withdrew from the accounts were non-taxable loans from foreign nationals. Rotta provided the IRS with fake promissory notes and false affidavits from the foreign nationals to corroborate his claims. During the audit, Rotta continued to use the funds in his foreign accounts to fund his lifestyle in the United States, but to conceal his use of the funds from the IRS, he often routed transfers from his foreign accounts through nominee accounts and attorney trust fund accounts in the United States.

    The IRS did not believe Rotta’s story and assessed millions of dollars of additional taxes as well as penalties and interest against him. Rotta sought to reverse the assessments by filing a false petition in U.S. Tax Court. In that petition, Rotta, through his attorney, falsely denied having any foreign accounts and attached fictitious loan documents. Furthermore, the nominee account owners traveled to the United States to retell the false loan story to IRS attorneys.

    In 2017, after Rotta presented the false evidence that the purported loans had been repaid, the IRS reversed the deficiencies and agreed that he owed no additional tax. Unbeknownst to the IRS, however, the “loan repayments” were fake: the funds that Rotta purportedly repaid went back into accounts that he controlled shortly after the IRS dismissed the suit. Also, as part of the conspiracy, Rotta had his U.S.-based attorneys create sham trust structures that he used to transfer his assets to the United States without alerting the IRS. On paper, it appeared that Rotta’s co-conspirator funded the trusts for Rotta’s benefit. In reality, Rotta funded the trusts with transfers from his Swiss accounts.

    In 2019, Rotta became aware that the IRS would receive additional account records from Switzerland that contradicted the false claims that he had previously made. In an attempt to avoid criminal liability, Rotta applied to participate in the IRS’s voluntary disclosure practice. Under that practice, taxpayers who failed to comply with their tax and reporting obligations could make timely, accurate, and complete disclosures of their conduct, which might offer a path to resolve their non-compliance and limit their criminal exposure. Rotta made false statements in his submission, including falsely claiming that the assets in the Swiss accounts mostly belonged to others, and that any funds provided to him were non-taxable gifts. Rotta also falsely claimed that the nominee account owner gifted Rotta money because that nominee had no children to benefit from the funds. In fact, that nominee had two children.

    In addition to his prison sentence, U.S. District Judge Rodney Smith for the Southern District of Florida ordered Rotta to serve three years of supervised release. The court will determine restitution at a later date.

    Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, U.S. Attorney Hayden O’Byrne for the Southern District of Florida, and Executive Special Agent in Charge Kareem Carter of IRS Criminal Investigation (IRS-CI) Washington, D.C. Field Office made the announcement.

    Special Agents from IRS-CI’s International Tax & Financial Crimes specialty group, a team based out of Washington, D.C., and dedicated to uncovering international tax crimes, investigated the case.

    Senior Litigation Counsels Sean Beaty and Mark Daly, Trial Attorney William Montague, and former Trial Attorney Patrick Elwell of the Tax Division, as well as Senior Litigation Counsel Christopher J. Clark for the Southern District of Florida, prosecuted the case.

    MIL OSI USA News –

  • MIL-OSI Security: Florida Man Sentenced for Decades-Long Scheme to Defraud the IRS

    Source: United States Attorneys General 1

    A Miami man was sentenced today to 60 months in prison for conspiring to defraud the United States by concealing millions of dollars in assets and income in undisclosed Swiss bank accounts and claiming to the IRS that those assets were not his and instead belonged to foreign nationals.

    The following is according to court documents and statements made in court: between 1985 and 2020, Dan Rotta, a dual Brazilian and U.S. citizen, hid more than $20 million in assets in dozens of secret Swiss accounts at five different Swiss banks, including UBS, Credit Suisse, Bank Bonhôte, and Bank Julius Baer. The accounts were held in his own name, in the names of sham structures, and, in one instance, a pseudonym. Over the years, Rotta earned tens of millions of dollars of income from these assets that he did not report on his tax returns and used to fund his lavish lifestyle. He caused a substantial tax loss to the IRS.

    Rotta employed increasingly elaborate schemes to keep his accounts hidden. Over the years, he kept his accounts open, in part, by falsely representing that he was not a U.S. citizen, leveraging his Brazilian citizenship to claim he was a Brazilian citizen residing in Brazil.

    Starting in 2008, after it was reported publicly that UBS and its bankers were under criminal investigation for helping U.S. taxpayers evade their taxes, Rotta closed his UBS account and moved his funds to Credit Suisse and Bank Bonhôte.

    In 2011, after the IRS obtained records related to one of Rotta’s Swiss accounts, he nominally changed the documentation of his accounts at Credit Suisse and Bank Bonhôte to make it appear that his co-conspirator, a Brazilian national and resident, owned the assets in the accounts. Despite the change, Rotta continued to control the assets and transferred millions of dollars out of those accounts for his use.

    Shortly after Rotta changed the account documentation, the IRS  audited him. During the audit, Rotta falsely denied that he owned the assets in the foreign financial accounts and, instead, claimed that the millions of dollars he withdrew from the accounts were non-taxable loans from foreign nationals. Rotta provided the IRS with fake promissory notes and false affidavits from the foreign nationals to corroborate his claims. During the audit, Rotta continued to use the funds in his foreign accounts to fund his lifestyle in the United States, but to conceal his use of the funds from the IRS, he often routed transfers from his foreign accounts through nominee accounts and attorney trust fund accounts in the United States.

    The IRS did not believe Rotta’s story and assessed millions of dollars of additional taxes as well as penalties and interest against him. Rotta sought to reverse the assessments by filing a false petition in U.S. Tax Court. In that petition, Rotta, through his attorney, falsely denied having any foreign accounts and attached fictitious loan documents. Furthermore, the nominee account owners traveled to the United States to retell the false loan story to IRS attorneys.

    In 2017, after Rotta presented the false evidence that the purported loans had been repaid, the IRS reversed the deficiencies and agreed that he owed no additional tax. Unbeknownst to the IRS, however, the “loan repayments” were fake: the funds that Rotta purportedly repaid went back into accounts that he controlled shortly after the IRS dismissed the suit. Also, as part of the conspiracy, Rotta had his U.S.-based attorneys create sham trust structures that he used to transfer his assets to the United States without alerting the IRS. On paper, it appeared that Rotta’s co-conspirator funded the trusts for Rotta’s benefit. In reality, Rotta funded the trusts with transfers from his Swiss accounts.

    In 2019, Rotta became aware that the IRS would receive additional account records from Switzerland that contradicted the false claims that he had previously made. In an attempt to avoid criminal liability, Rotta applied to participate in the IRS’s voluntary disclosure practice. Under that practice, taxpayers who failed to comply with their tax and reporting obligations could make timely, accurate, and complete disclosures of their conduct, which might offer a path to resolve their non-compliance and limit their criminal exposure. Rotta made false statements in his submission, including falsely claiming that the assets in the Swiss accounts mostly belonged to others, and that any funds provided to him were non-taxable gifts. Rotta also falsely claimed that the nominee account owner gifted Rotta money because that nominee had no children to benefit from the funds. In fact, that nominee had two children.

    In addition to his prison sentence, U.S. District Judge Rodney Smith for the Southern District of Florida ordered Rotta to serve three years of supervised release. The court will determine restitution at a later date.

    Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, U.S. Attorney Hayden O’Byrne for the Southern District of Florida, and Executive Special Agent in Charge Kareem Carter of IRS Criminal Investigation (IRS-CI) Washington, D.C. Field Office made the announcement.

    Special Agents from IRS-CI’s International Tax & Financial Crimes specialty group, a team based out of Washington, D.C., and dedicated to uncovering international tax crimes, investigated the case.

    Senior Litigation Counsels Sean Beaty and Mark Daly, Trial Attorney William Montague, and former Trial Attorney Patrick Elwell of the Tax Division, as well as Senior Litigation Counsel Christopher J. Clark for the Southern District of Florida, prosecuted the case.

    MIL Security OSI –

  • 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 –

  • 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 –

  • 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 –

  • 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:

    Walter J. Phifer | CFO | Investor Relations | 910.202.6926
    Claire Parker | Corporate Communications | Media Relations | 910.597.1592

    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 –

  • MIL-OSI: PredictIt Announces a Resolution to Litigation with the CFTC and a Bright Future Ahead

    Source: GlobeNewswire (MIL-OSI)

    WASHINGTON, July 23, 2025 (GLOBE NEWSWIRE) — PredictIt is pleased to announce the favorable resolution of its nearly three-year-long litigation challenging the Commodity Futures Trading Commission’s historical efforts to close the PredictIt Market. As part of the resolution, the CFTC amended its No-Action Letter (NAL) to permit transition of the Market’s leadership to a respected consortium of academics from America’s most prestigious institutions. As the second part of the resolution, the United States District Court for the Western District of Texas entered final judgment in favor of PredictIt on Tuesday, July 22. That court order declares invalid the CFTC’s prior efforts and justifications for seeking to end the PredictIt Market. It also bars the CFTC from future efforts to close the Market based on its current structure and features.

    Together, these two pillars of the resolution lay a stable foundation for the PredictIt Market’s future. With the historical efforts to end the Market having been declared illegal and the judgment’s protections against future such efforts, Market participants may trade political event contracts on the Market, and the academic community may plan study of Market data, with confidence.

    As a sign of the progress and energy created by this resolution framework, PredictIt already has offered a series of new political event prediction markets and will continue to do so in the days ahead. These markets long have served as a valuable tool for public insight, academic research, and civic engagement.

    We extend our sincere thanks to Acting Chair Caroline Pham for her leadership, constructive engagement, and support for responsible innovation. Her openness has helped clear the path for regulatory clarity and stability in this in this important field.

    “With this resolution, PredictIt can continue doing what it does best—bringing transparency and insight to the political process through data-driven forecasting,” said John Aristotle Phillips, CEO of PredictIt operator Aristotle. “We’re grateful to our community of traders, academics, and supporters for standing by us. The future for prediction markets has never looked brighter.”

    “It was a long struggle to vindicate the rights of traders and academics to participate in the PredictiIt Market and to the invaluable information it provides about the most important political issues facing the Nation,” said Michael Edney, the lawyer representing the Market’s operators, traders, and academics in court. “Today’s outcome comes after crucial judicial decisions, including two from the United States Court of Appeals for the Fifth Circuit, setting forth these protections. We are grateful to the courts and to the Commission’s current leadership for restoring stability to this national resource.”

    PredictIt looks to the future with optimism. We remain committed to transparency, compliance, and expanding participation in political forecasting through fair and accessible markets.

    A new chapter begins today—and we’re just getting started.

    Contact: 
    Brandi Travis
    +12707042462
    brandi.travis@aristotle.com

    The MIL Network –

  • MIL-Evening Report: Birds use hidden black and white feathers to make themselves more colourful

    Source: The Conversation (Au and NZ) – By Simon Griffith, Professor of Avian Behavioural Ecology, Macquarie University

    The green-headed tanager (_Tangara seledon_) has a hidden layer of plumage that is white underneath the orange feathers and black underneath the blue and green feathers. Daniel Field

    Birds are perhaps the most colourful group of animals, bringing a splash of colour to the natural world around us every day. Indeed, exclusively black and white birds – such as magpies – are in the minority.

    However, new research by a team from Princeton University in the United States has revealed a surprising trick in which birds use those boring black and white feathers to make their colours even more vivid.

    Male golden tanagers (Tangara arthus) have hidden layers of white which make their plumage brighter, while females have hidden layers of black which make their plumage darker.
    Daniel Field

    In the study, published today in Science Advances, Rosalyn Price-Waldman and her colleagues discovered that if coloured feathers are placed over a layer of either white or black underlying feathers, their colours are enhanced.

    A particularly striking discovery was that in some species the different colour of males and females wasn’t due to the colour the two sexes put into the feathers, but rather in the amount of white or black in the layer underneath.

    Why birds are so bright – and how they do it

    Typically, male birds have more vivid colours than females. As Charles Darwin first explained, the most colourful males are more likely to attract mates and produce more offspring than those that aren’t as vivid. This process of “sexual selection” is the evolutionary force that has resulted in most of the colours we see in birds today.

    Evolution is a process that rewards clever solutions in the competition among males to stand out in the crowd. Depositing a layer of black underneath patches of bright blue feathers has enabled males to produce that extra vibrancy that helps them in the competition for mates.

    The blue feathers of a red-necked tanager (Tangara cyanocephala) stand out against a black underlayer.
    Rosalyn Price-Waldman

    The reason the black layer works so well is that it absorbs all the light that passes through the top layer of coloured feathers. The colour we see is blue because those top feathers have a fine structure that scatters light in a particular way, and reflects light in the blue part of the spectrum.

    The feathers appear particularly vivid blue because the light in other wavelengths is absorbed by the under-layer. If the under-layer was paler, some of the light in the other parts of the light spectrum would bounce back and the blue would not “pop out” as much.

    Different tricks for different colours

    Interestingly, in the new study, the researchers found that for yellow feathers the opposite trick works. Yellow feathers contain yellow pigments – carotenoids – and in this case they are enhanced if they have a white under-layer.

    The white layer reflects light that passes through the yellow feathers, and this increases the brightness of these yellow patches, making them more striking in contrast to surrounding patches of colour.

    The red feather tips of a scarlet-rumped tanager (Ramphocelus passerinii) are enhanced by the white feathers beneath them.
    Rosalyn Price-Waldman

    A surprisingly common technique

    The authors focused most of their work on species of tanager, typically very colourful fruit-eating birds that are native to Central and South America.

    However, once they had discovered what was happening in tanagers, they checked to see if it was occurring in other birds.

    The vivid blue colouring of the Australian splendid fairy wren (Malurus splendens) is enhanced by an underlayer of colourless feathers.
    Robbie Goodall / Getty Images

    This additional work revealed that the use of black and white underlying feathers to enhance colour is found in many other bird families, including the Australian fairy wrens which have such vivid blue colouration.

    This widespread use of black and white across so many different species suggests birds have been enhancing the production of colour in this clever way for tens of millions of years, and that it is widely used across birds.

    The color of the vibrant red crown of this red-capped manakin (Ceratopipra mentalis) is magnified by a hidden layer of white plumage.
    Daniel Field

    The study is important because it helps us to understand how complex traits such as colour can evolve in nature. It may also help us to improve the production of vibrant colours in our own architecture, art and fashion.

    Simon Griffith receives funding from the Australian Research Council.

    – ref. Birds use hidden black and white feathers to make themselves more colourful – https://theconversation.com/birds-use-hidden-black-and-white-feathers-to-make-themselves-more-colourful-261567

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Security: Defense News in Brief: CNRC Launches “Top Doc” in Fort Lauderdale

    Source: United States Navy

    FORT LAUDERDALE, Fla. — Navy Recruiting Command launched its national initiative pilot program, “Top Doc,” showcasing Medical Corps capabilities and career paths at Nova Southeastern University’s Fort Lauderdale campus on Saturday, July 12.

    “Top Doc,” is designed to draw in a wide variety of people in various stages of their medical career path. This includes medical students, residents, residency program leaders and staff, and attending physicians in any type of practice or specialty.

    “The involvement of a scholarly team of professionals, enabled by Nova Southeastern University’s prestigious health sciences programs, is a cornerstone of our excitement for launching the ‘Top Doc,’ pilot in South Florida, where we’ve received unparalleled community support,” said Capt. Tara Mcginnis, medical officer programs officer, Navy Recruiting Command. “This event captivates Florida residents by showcasing Navy Medicine’s advanced emergency care techniques, directly relevant to the state’s veteran and active-duty communities. It offers local medical professionals and students the chance to explore rewarding careers in Navy Medicine, while residents take pride in the military-civilian partnerships fostered here.”

    Mcginnis believes the “Top Doc” initiative prioritizes the Medical Corps by attracting top medical talent from medical schools, residencies, and direct accessions.

    “The experience offers military medical trainees and staff the opportunity to collaborate with civilian healthcare programs, foster a mutual exchange of knowledge, innovation, and service,” said Navy Counselor (Recruiting) 1st Class Jason Catano, assigned to the Hometown Medical Recruiter pilot program with Medical Accessions, Navy Recruiting Command. “The whole intent with this is to bring that all to the table and also give an opportunity to have hands-on training with the different professionals that are here from different career fields.”

    Navy Bureau of Medicine and Surgery (BUMED), the headquarters for Navy Medicine, was represented at “Top Doc,” by surgeons, an anesthesiologist, and a dermatologist. Tactical Combat Casualty Care (TCCC) instructors, Nurse Corps officers, and enlisted hospital corpsmen also lent their experience and expertise to the event.

    Matthew Chenworth, senior director of military affairs for Nova Southeastern University and Marine Corps veteran, believes ensuring connecting the university’s students, faculty, and staff with the military is a top priority. Chenworth says NSU’s collaboration on “Top Doc,” and the long-standing relationship with NTAG Miami helps to achieve that goal.

    “We’ve been coordinating a lot of scholarship opportunities specifically with our medical students who are looking to serve their country as a medical officer with the United States Navy upon their graduation,” said Chenworth. “We introduced [“Top Doc”] to our pre-medicine students, our nursing students, and to those who are currently within our health profession division that are going to be [Doctor of Osteopathic Medicine, Medical Doctors, and Physician Assistants]. We also extended the invite to our public safety office as well because those might be skills that our security officers here on campus may need.”

    This joint effort brought in local medical professionals and community leaders, adding to the value of the event. Dr. Joshua Lenchus, former Florida Medical Association president, and Dr. Aeyal Oren, general surgeon in private practice, spent time working with simulation manikins and leading procedural demonstrations.

    “It was a big role to step into, but I have prior experience doing simulation experience with my training down in Miami as well as dealing with the military because we ran trauma simulations there as well,” said Lenchus. “I think that the opportunities in the military are tremendous and there’s never enough gratitude that we can pay to the people who choose to put on the uniform and serve this country.”

    Lenchus believes that while financial aid is extremely important, the leadership development gained through the military’s specialized training and coursework—often not available in the civilian sector—is equally vital.

    Those in attendance gained insights from active-duty and reserve healthcare professionals working in the fleet.

    Navy Medicine personnel presented specialized training capabilities on simulation tools, such as the TCCC Cut Suit, used to train medical personnel in treating battlefield traumas. Several presenters shared information sessions explaining the availability and requirements of medical officer programs and how they applied those programs in their careers.

    Lt. Gahen Pendlebury, a full-time out-service medical officer and, emergency medicine resident, facilitated at the event.

    “What I’ve realized through talking with civilian colleagues is that there are a lot of misconceptions [about military careers],” said Pendlebury. “Some people think that they’re too old, and they are no where near that. Some think that because they went to a Caribbean school, they can’t join as physicians. There are all sorts of entryways. These types of events really help not only expand Navy branding, but really help people understand that it’s not too late and that there are different pathways.”

    Pendlebury believes there is a need for these kinds of events where interested people can obtain information about different career paths in Navy Medicine whether as active duty or reserve Sailors.

    David Missel, a first-year optometry student at NSU and Navy medical officer applicant, said he attended “Top Doc,” to learn more about Navy Medicine and to celebrate his commitment to serve upon graduation.

    “I decided to come here today because I’ve really had a passion for the Navy ever since I was a little kid,” said Missel. “I didn’t even know that I could be an optometrist in the Navy until very recently. Speaking to a recruiter and other people in the Navy, the more I learned about it the more I realize that this is such an amazing program and it’s a wonderful career opportunity. I’m just really looking forward to diving into this.”

    Navy Medicine, represented by more than 44,000 highly trained military and civilian health care professionals, provides enduring expeditionary medical support to the warfighter any time, any place.

    Missed the event but want to learn about Navy Medicine opportunities? Visit www.navy.com/navy-medicine or call 1-800-USA-NAVY for information.

    NTAG Miami, has 38 recruiting locations throughout South Florida, Puerto Rico and the Virgin Islands, with the combined mission to recruit the highest caliber Sailors to meet the needs of the Fleet.

    Navy Recruiting Command consists of a command headquarters, two Navy Recruiting Regions, Navy Recruiting Reserve Command, and 26 NTAGs that serve more than 970 recruiting stations around the world. Their mission is to attract the highest quality candidates to assure the ongoing success of America’s Navy.

    MIL Security OSI –

  • 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 –

  • MIL-OSI USA: Congressman Valadao Urges DOT to Reinvest $4 Billion from High-Speed Rail to Infrastructure Improvements

    Source: United States House of Representatives – Congressman David G. Valadao (California)

    It’s been over 10 years since the California High-Speed Rail Authority began construction, and after wasting billions of taxpayer dollars, missing numerous deadlines, and forcing the Central Valley to suffer due to neglect, they have zero miles of operational track to show for it.

    WASHINGTON – Congressman David Valadao (CA-22) joined Reps. Vince Fong (CA-20), Ken Calvert (CA-41), Darrell Issa (CA-48), Tom McClintock (CA-05), Doug LaMalfa (CA-01), Young Kim (CA-40), Jay Obernolte (CA-23), and Kevin Kiley (CA-03) to send Department of Transportation (DOT) Secretary Sean Duffy a letter applauding the Federal Railroad Administration’s decision to terminate funding for California’s High-Speed Rail project. The letter urges DOT to redirect the $4 billion in recovered federal funds to critical infrastructure priorities across California.

    “It’s been over 10 years since the California High-Speed Rail Authority began construction, and after wasting billions of taxpayer dollars, missing numerous deadlines, and forcing the Central Valley to suffer due to neglect, they have zero miles of operational track to show for it,” said Congressman Valadao. “This project has been overfunded and grossly mismanaged from the start, and it’s past time we refocus our efforts and resources on infrastructure projects our region needs.” 

    The letter recommends funds be redirected to:

    • Expanding State Route 99, Interstate 15, Interstate 5, Interstate 395, Interstate 80, and State Route 65.
    • Supporting repairs on roadways designated as farm-to-market roads.
    • Shifting State Route 152 and modify a bridge on Interstate 5 to accommodate for needed reservoir capacity improvements.
    • Improving a bypass on State Route 70.
    • Repairing roads damaged by the Los Angeles wildfires.
    • Supporting infrastructure improvements needed for the 2028 Olympics.

    Read the full letter here.

    ###

    MIL OSI USA News –

  • 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 –

  • MIL-OSI USA: CFTC Staff Issues No-Action Letter Regarding Event Contracts

    Source: US Commodity Futures Trading Commission

    CFTC Staff Issues No-Action Letter Regarding Event Contracts | CFTC

    /PressRoom/PressReleases/9099-25
    Skip to main content

    July 23, 2025

    WASHINGTON, D.C. — The Commodity Futures Trading Commission’s Division of Market Oversight and the Division of Clearing and Risk today announced they have taken a no-action position regarding swap data reporting and recordkeeping regulations in response to a request from the Chicago Mercantile Exchange Inc., a designated contract market and derivatives clearing organization.
    The divisions will not recommend the CFTC initiate an enforcement action against CME or its participants for failure to comply with certain swap-related recordkeeping requirements and for failure to report to swap data repositories data associated with binary option transactions executed on or subject to the rules of CME, subject to the terms of the no-action letter. The no-action letter applies only in narrow circumstances and is comparable to no-action letters issued for other similarly situated designated contract markets and derivatives clearing organizations. 

    -CFTC-

    MIL OSI USA News –

  • MIL-OSI USA: Attorney General Alan Wilson leads 17-state brief supporting efforts to exclude racially or sexually divisive materials from public schoolsRead More

    Source: US State of South Carolina

    (COLUMBIA, S.C.) – South Carolina Attorney General Alan Wilson announced today that he is leading a 17-state effort to support state lawmakers’ efforts to keep racially or sexually divisive materials out of public schools.

    “Our schools are supposed to be places of learning and collaboration, not indoctrination into woke ideologies that assign blame or condemnation based on race or sex,” Attorney General Wilson said.

    The South Carolina legislature passed a budget proviso that says the state Department of Education cannot use state money for any instructional materials that teach that one race or sex is inherently superior to another race or sex, or that someone is inherently racist, sexist, or oppressive by virtue of their race or sex. (You can read the Budget Proviso here.)

    The South Carolina NAACP, two authors, a teacher, and several students filed a lawsuit to block the proviso, arguing that it violates their First Amendment rights. The attorneys general filed a friend-of-the-court brief in that lawsuit supporting lawmakers’ right to decide which materials belong in public schools.

    The attorneys general argue that the Court doesn’t need to endorse the state’s restriction on racially or sexually divisive materials in public schools as sound public policy, only that it needs to follow precedent that says the selection, curation, and placement of educational materials in public schools is a form of government speech.

    “A citizen’s right to receive information under the First Amendment is not a right to compel or extract information from the government at the taxpayers’ expense. Accordingly, there is no First Amendment right to compel state-funded schools to implement certain course curricula or require public school libraries to stock their bookshelves with inflammatory and prejudicial materials,” the attorneys general write in their brief.

    They also argue that the proviso does not prevent anyone from receiving that information, but rather prevents children from accessing the material in public schools at taxpayers’ expense.

    They ask the Court to deny the plaintiffs’ motion for a preliminary injunction and dismiss the case, holding that the plaintiffs are unlikely to succeed on their First Amendment claims.

    Joining Attorney General Wilson in the brief are the attorneys general from Alabama, Florida, Georgia, Idaho, Indiana, Iowa, Kansas, Louisiana, Missouri, Montana, Nebraska, Oklahoma, South Dakota, Texas, Utah, and West Virginia.

    You can read their brief here.

    MIL OSI USA News –

  • MIL-OSI USA: New Jersey Construction Company Owner Sentenced for Tax Evasion

    Source: US State of California

    A New Jersey construction company owner was sentenced yesterday to 15 months in prison for evading employment tax penalties assessed against him.

    The following is according to court documents and statements made in court: Joseph Caravella, of Randolph, owned several masonry companies in New Jersey. From 2008 to 2016, the IRS assessed approximately $650,000 in Trust Fund Recovery penalties against Caravella for causing three masonry businesses that he owned to not pay their federal employment taxes. The timely payment of federal employment taxes is critical to the functioning of the U.S. government because, for example, they are the primary source of funding for Social Security and Medicare. The federal income taxes that are withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year. Congress empowered the IRS to impose a penalty equal to the amount of the unpaid taxes — called a Trust Fund Recovery Penalty — against any responsible individual who fails to ensure that these taxes are paid timely. Caravella pleaded guilty to attempting to evade these Trust Fund Recovery penalties.  

    From around March 2008 through April 2019, Caravella sought to evade the payment of these penalties by placing companies that he controlled in the names of nominee owners and avoiding the use of a bank account in his own name to prevent the IRS from levying the funds. Also during that time, Caravella continued to cause his businesses not to pay employment taxes, resulting in an additional loss of $1.2 million to the IRS.

    In total, Carvalla caused a tax loss to the IRS of $1,885,519.39.

    Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Alina Habba for the District of New Jersey made the announcement.

    IRS Criminal Investigation is investigating the case.

    Trial Attorney Hayter L. Whitman of the Tax Division and Assistant U.S. Attorney Christopher Fell for the District of New Jersey are prosecuting the case.

    MIL OSI USA News –

  • MIL-OSI USA: Justice Department Supports Seattle’s Motion to Terminate Police Department Consent Decree

    Source: US State of California

    The Justice Department’s Civil Rights Division today announced that it has filed a response in support of the City of Seattle’s Motion to Terminate the Consent Decree in United States v. City of Seattle. The decree required reforms in the Seattle Police Department’s practices regarding use of force, crisis intervention, stops and detentions, supervision and accountability. With support from the Justice Department, the Seattle Police Department (SPD) achieved sustained substantial compliance.

    The Justice Department brought this case pursuant to the Violent Crime Control and Law Enforcement Act of 1994 and the Omnibus Crime Control and Safe Streets Act of 1968. The U.S. Attorney’s Office’s Civil Division and the Special Litigation Section of the U.S. Department of Justice’s Civil Rights Division jointly investigated and found that the Seattle Police Department (SPD) had engaged in a pattern or practice of unnecessary or excessive force that violated the Constitution and federal law. The U.S. District Court for the Western District of Washington entered the consent decree in 2012.

    “We congratulate the Seattle Police Department on its achievement of sustained substantial compliance with this thirteen-year-old consent decree,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This Civil Rights Division will continue to work with police departments across the country to help make America’s communities safe again.”

    “The U.S. Attorney’s Office, Western District of Washington, believes the district court should terminate the consent decree and monitorship, which have been in place for 13 years,” said Acting U.S. Attorney Teal Luthy Miller for the Western District of Washington. “Seattle has been held up as an example of successful police reform and has done recent work on its crowd control policies and accountability systems. We trust it will continue to lead the way on constitutional policing.”

    MIL OSI USA News –

  • MIL-OSI USA: Colorado Man Pleads Guilty to Sexually Exploiting a Minor and Possessing Child Sexual Abuse Material

    Source: US State of North Dakota

    A Colorado man pleaded guilty today to sexually exploiting a minor and possessing child sexual abuse material (CSAM).

    According to court documents, Wesley Chambers, 34, of Fort Collins, sexually abused a minor for years and recorded the abuse. Law enforcement found more than 200 sexually explicit videos and photographs of the minor on Chambers’ cell phone, and more than 20,000 photographs and 2,500 videos of the sexual abuse and exploitation of other minors.

    Chambers pleaded guilty to two counts of sexually exploiting a child and one count of possessing material depicting the sexual exploitation of minors. As part of his plea agreement, the defendant also admitted to accessing child pornography on the dark web, including “hurtcore” sites. He is scheduled to be sentenced on Oct. 22 and faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of 70 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division, U.S. Attorney Peter McNeilly for the District of Colorado, Assistant Director Jose A. Perez of the FBI Criminal Investigative Division, and Special Agent in Charge Mark Michalek of the FBI Denver Field Office made the announcement.

    The FBI’s Child Exploitation Operational Unit and the FBI Denver Field Office investigated the case.

    Trial Attorney Rachel L. Rothberg of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Alecia L. Riewerts for the District of Colorado are prosecuting the case.

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

    MIL OSI USA News –

  • MIL-OSI USA: In Advance of Comic-Con Weekend, Attorney General Bonta, Comic-Con International Raise Awareness, Provide Tips to Combat Human Trafficking

    Source: US State of California

    The San Diego Human Trafficking Task Force will be conducting operations to tackle human trafficking by working to reduce the demand for commercial sexual exploitation

    SAN DIEGO – California Attorney General Rob Bonta and Comic-Con International today partnered together to raise awareness of human trafficking and provide resources for the public to assist in the fight to combat human trafficking. Events like Comic-Con, which bring thousands of people together, are a perfect opportunity to raise awareness of human trafficking, a crime that comes in many forms, including sex trafficking, forced labor, and domestic servitude resulting from force, fraud, or coercion. Everyone can play a role in stopping this unlawful activity by being aware of the signs and reporting any suspicious activity, whether you’re living or staying in San Diego, attending Comic-Con, or participating in festivities during Comic-Con weekend.

    “Comic-Con is an incredible event that brings people from all over the world together in San Diego to celebrate creativity, art, and community – we’re grateful to Comic-Con International for using their platform in partnership with my office to raise awareness of human trafficking,” said Attorney General Rob Bonta. “Human trafficking is a terrible crime where perpetrators profit from the control and exploitation of men, women, and children for sex or labor through force, fraud, or coercion. Everyone has a role to play in putting a stop to human trafficking: We urge the public to know the signs — and if you see something, say something. The California Department of Justice’s San Diego Human Trafficking Task Force will be conducting operations during Comic-Con, and the public can help by reporting any suspicious activity they may see. We wish everyone a safe, happy, and creative Comic-Con weekend.”

    “Safety of our attendees is always our primary focus,” said David Glanzer, Chief Communications and Strategy Officer for Comic-Con. “We join and applaud the efforts of California Attorney General Rob Bonta in keeping citizens safe, especially during Comic-Con weekend.”

    Human trafficking is among the world’s fastest growing criminal enterprises and is estimated to be a $150 billion per year global industry. Human trafficking is not only a crime, but a violation of a person’s human rights and dignity. Perpetrators of human trafficking profit from the control and exploitation of men, women, and children for sex or labor through force, fraud, or coercion. Victims of human trafficking are protected under federal and California law. The California Department of Justice’s San Diego Human Trafficking Task Force (SDHTTF) will be conducting operations to reduce demand for commercial sexual exploitation during Comic-Con. The SDHTTF takes a survivor-oriented approach and works with victim advocate groups that offer a wide range of services for survivors of human trafficking.

    Below are some facts and resources about human trafficking for the public to know:

    • Victims of human trafficking are often hidden in plain sight. Learn the signs and how to report suspected trafficking.
    • Forced or coerced commercial sex work is still human trafficking. Demand is a driving force in the scope of the problem, and sex buyers may unknowingly contribute to human trafficking by engaging in Solicitation Penal Code 647(b)(2). Solicitation is a crime subject to jail time and monetary penalties.
    • Forced labor can happen anywhere. This includes hotels, lodgings, and entertainment industries.
    • If you or someone you know is being forced to engage in any activity and cannot leave, you can call the National Human Trafficking Hotline at 1-888-373-7888 to access help and services.
    • If you are, or someone else, is in immediate danger, call 9-1-1. 

    SDHTTF is a cooperative effort involving the California Department of Justice, California Highway Patrol, Federal Bureau of Investigation, Homeland Security Investigations, National City Police Department, San Diego City Attorney’s Office, San Diego County District Attorney’s Office, San Diego County Probation Department, San Diego County Sheriff’s Department, San Diego Police Department, Southwest Border High Intensity Drug Trafficking Area, and the U.S. Attorney’s Office for the Southern District of California. In addition to serving as the lead agency on the SDHTTF, the California Department of Justice has two regional Human Trafficking and Sexual Predator Apprehension Teams serving Northern California and Southern California.

    General information and resources to support survivors of human trafficking are available here. To access resources for San Diego County, please see SDHTTF’s resource list here.

    MIL OSI USA News –

  • MIL-OSI Security: Lake County Convicted Felon Pleads Guilty To Illegally Possessing A Firearm

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

    Ocala, Florida – United States Attorney Gregory W. Kehoe announces that Gregory Coleman III (28, Leesburg) has entered a guilty plea to an indictment charging him with one count of possession of a firearm affecting commerce by a convicted felon. Coleman faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set. A federal grand jury indicted Coleman on December 12, 2023. 

    According to the court records, Coleman has been convicted of four state felonies, including aggravated assault on a law enforcement officer, resisting law enforcement with violence, fleeing or attempting to elude law enforcement, and possession of cocaine. Following these convictions, on November 4, 2023, Coleman sold a firearm to a confidential source who was working in cooperation with federal agents. Coleman told the source he had more firearms but wanted to keep them for himself. As a convicted felon, Coleman is prohibited from possessing firearms or ammunition under federal law.

    This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Eustis Police Department. It is being prosecuted by Assistant United States Attorney Hannah Nowalk Watson.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    MIL Security OSI –

  • MIL-OSI Security: Birmingham Man Sentenced to 36 Years in Prison on Gun and Drug Charges

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

    BIRMINGHAM, Ala. – A federal judge has sentenced a Birmingham man for possessing a machine gun in furtherance of a drug trafficking crime and drug trafficking, announced U.S. Attorney Prim F. Escalona.

    U.S. District Court Judge Madeline H. Haikala sentenced Frederick Leonard Temple, Jr., also known as “Cutt” and “Cutthroat,” 35, to 432 months in prison. In February, Temple was convicted by a jury of possession of a machine gun, two counts of distribution of fentanyl, possession with intent to distribute methamphetamine and fentanyl, and possession of a machine gun in furtherance of a drug-trafficking crime.

    “This sentence sends a clear message that violent, criminal conduct like Defendant Temple’s will not be tolerated,” said U.S. Attorney Escalona. “I commend our law enforcement partners and prosecutors for their unwavering commitment to ensuring Temple was brought to justice.”

    “Today’s sentencing illustrates the continuous commitment that the ATF shares with our state, local, and federal law-enforcement partners to combat the illegal possession of firearms, fight violent crime, and remove narcotics from the streets,” said ATF Special Acting Agent in Charge Jason Stankiewicz.  “We will continue to utilize all of our resources in an effort to maintain public safety in the communities that we serve.”

    According to evidence presented at trial, Temple distributed fentanyl on two separate occasions. On January 26, 2022, members of the Shelby County Drug Enforcement Task Force and officers from the Birmingham Police Department executed a search warrant at Temple’s residence. During the search, officers found drugs and firearms in a rear bedroom where an infant was located. The search of the residence resulted in the seizure of 14 firearms, including a Glock 9 mm pistol equipped with a machine gun-conversion device commonly referred to as a “Glock switch,” several high-capacity firearm magazines, including 100- and 50-round drum magazines, and a large amount of various ammunition, as well as fentanyl, methamphetamine, six digital scales of various sizes, and other drug paraphernalia.

    The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case along with the Shelby County Sheriff’s Office and Birmingham Police Department.  Assistant U.S. Attorneys Kristy M. Peoples and Alan Kirk prosecuted the case. 

    MIL Security OSI –

  • MIL-OSI Security: Rapid City Man Sentenced to 2½ Years in Federal Prison for Illegally Possessing a Firearm as a Felon

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

    RAPID CITY – United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced a Rapid City man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on July 21, 2025.

    William Janis, 25, was sentenced to two years and six months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. This sentence was ordered to run consecutively to a state custody sentence Janis is serving for a prior drug conviction.

    Janis was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in February 2025. He pleaded guilty on April 28, 2025.

    In December 2024, Janis was contacted by law enforcement officers after he was seen yelling outside an apartment complex in Rapid City and trying to gain access inside. Officers learned Janis had an active warrant, and he was subsequently arrested. After being arrested, Janis informed officers he had a firearm in his waistband. Officers located and seized a 9mm pistol. Janis had previously been convicted of a felony, was on parole for a felony drug conviction, and knew he was also prohibited from possessing firearms pursuant to his parole agreement.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN). Through PSN, the District of South Dakota seeks to bring together all levels of law enforcement and the communities they serve to reduce gun violence and make our neighborhoods safer for everyone. 

    This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rapid City Police Department. Supervisory Assistant U.S. Attorney Benjamin Patterson prosecuted the case.

    Janis was immediately remanded to the custody of the U.S. Marshals Service. 

    MIL Security OSI –

  • MIL-OSI Security: FEDERAL JURY CONVICTS PANAMA CITY FELON OF DRUG TRAFFICKING AND ILLEGAL FIREARMS CHARGES

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

    PENSACOLA, FLORIDA – Jarrel Daniel Rivaz, 35, of Panama City, was found guilty by a federal jury of possession with intent to distribute 500 grams or more of cocaine and marijuana, possession of a firearm in furtherance of drug trafficking, and possession of a firearm and ammunition by a convicted felon on Tuesday morning, July 22, 2025. The verdict was announced by John P. Heekin, United States Attorney for the Northern District of Florida.

    U.S. Attorney Heekin said: “Fulfilling the promise of President Donald J. Trump and Attorney General Pam Bondi to Take Back America from violent criminals and drug traffickers requires close collaboration between our federal, state, and local law enforcement partners like we saw in this case.  I am deeply appreciative of the outstanding work of the Bay County Sheriff’s Office and the ATF to get this criminal off our streets, and my office will continue to aggressively prosecute these cases to keep our communities safe from the predations of drug traffickers like this defendant.”

    Evidence admitted at trial established that on December 21, 2023, during a search warrant executed at the defendant’s house in Panama City, law enforcement found and seized over 900 grams of cocaine, a large quantity of marijuana, two firearms, and ammunition. One of the firearms was found loaded in a locked shed in the same bag as some of the marijuana. Rivaz had previously been convicted of a felony drug trafficking offense in New York under the name “Gerald Walker.”

    Sentencing is scheduled for October 16, 2025, at 10 a.m. in Pensacola before United States District Judge T. Kent Wetherell II. Rivaz faces a minimum mandatory term of 10 years’ imprisonment and a maximum possible sentence of life.

    The verdict was the result of a joint investigation by the Bay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorneys Ward Narramore and Alicia Forbes.

    This case is part of Operation Take Back America (https://www.justice.gov/dag/media/1393746/dl?inline ) a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.

    MIL Security OSI –

  • MIL-OSI Security: Colorado Man Pleads Guilty to Sexually Exploiting a Minor and Possessing Child Sexual Abuse Material

    Source: United States Attorneys General

    A Colorado man pleaded guilty today to sexually exploiting a minor and possessing child sexual abuse material (CSAM).

    According to court documents, Wesley Chambers, 34, of Fort Collins, sexually abused a minor for years and recorded the abuse. Law enforcement found more than 200 sexually explicit videos and photographs of the minor on Chambers’ cell phone, and more than 20,000 photographs and 2,500 videos of the sexual abuse and exploitation of other minors.

    Chambers pleaded guilty to two counts of sexually exploiting a child and one count of possessing material depicting the sexual exploitation of minors. As part of his plea agreement, the defendant also admitted to accessing child pornography on the dark web, including “hurtcore” sites. He is scheduled to be sentenced on Oct. 22 and faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of 70 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division, U.S. Attorney Peter McNeilly for the District of Colorado, Assistant Director Jose A. Perez of the FBI Criminal Investigative Division, and Special Agent in Charge Mark Michalek of the FBI Denver Field Office made the announcement.

    The FBI’s Child Exploitation Operational Unit and the FBI Denver Field Office investigated the case.

    Trial Attorney Rachel L. Rothberg of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Alecia L. Riewerts for the District of Colorado are prosecuting the case.

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

    MIL Security OSI –

  • MIL-OSI: Origin Bancorp, Inc. Reports Earnings for Second Quarter 2025

    Source: GlobeNewswire (MIL-OSI)

    RUSTON, La., July 23, 2025 (GLOBE NEWSWIRE) — Origin Bancorp, Inc. (NYSE: OBK) (“Origin,” “we,” “our” or the “Company”), the holding company for Origin Bank (the “Bank”), today announced net income of $14.6 million, or $0.47 diluted earnings per share (“EPS”) for the quarter ended June 30, 2025, compared to net income of $22.4 million, or $0.71 diluted earnings per share, for the quarter ended March 31, 2025. Pre-tax, pre-provision (“PTPP”)(1) earnings were $21.5 million for the quarter ended June 30, 2025, compared to $32.0 million for the linked quarter.

    “During the second quarter, we continued to successfully execute on Optimize Origin, our plan to deliver elite level financial performance for Origin and our shareholders,” said Drake Mills, chairman, president and CEO of Origin Bancorp, Inc. “Throughout the first half of the year, we have created efficiencies within our branch network, improved the overall profitability of our commercial banking team, restructured our mortgage business, and taken multiple actions to optimize our balance sheet. As we head into the back half of 2025, we are well-positioned in the nation’s most dynamic growth markets; and I have full confidence that our employees will continue delivering exceptional value to our customers, communities, and shareholders.”

    (1) PTPP earnings is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its most directly comparable GAAP measure.

    Optimize Origin

    • In January 2025, we announced our initiative to drive elite financial performance and enhance our award-winning culture.
    • Built on three primary pillars:
      • Productivity, Delivery & Efficiency
      • Balance Sheet Optimization
      • Culture & Employee Engagement
    • Established near term target of greater than a 1% ROAA run rate by 4Q25 and an ultimate target of top quartile ROAA.
    • Near term target is being achieved in part by branch consolidation, headcount reduction, securities optimization, capital optimization, cash/liquidity management, mortgage restructuring, as well as other opportunistic efficiency optimizations throughout the organization.
    • We believe the actions we have taken will drive earnings improvement of approximately $34.2 million annually on a pre-tax pre-provision basis – an increase of approximately $10.8 million since the last quarterly update, due to additional benefits from increasing our Argent Financial ownership and further securities portfolio optimization.
             

    Financial Highlights

    • Net interest income was $82.1 million for the quarter ended June 30, 2025, reflecting an increase of $3.7 million, or 4.7%, compared to the linked quarter and is at its highest level in the previous nine quarters.
    • Our fully tax equivalent net interest margin (“NIM-FTE”) expanded 17 basis points to 3.61% for the quarter ended June 30, 2025, compared to the quarter ended March 31, 2025. The increase was primarily driven by an eight-basis point increase in the yield earned on average interest-earning assets and a five-basis point decline in the rate paid on average interest-bearing liabilities.
    • As part of our bond portfolio optimization strategy, we sold available-for-sale investment securities with a book value of $215.8 million and realized a loss of $14.4 million during the quarter ended June 30, 2025. This transaction, net of the increase in interest income, negatively impacted diluted EPS by $0.35, but contributed approximately two basis points to our NIM-FTE for the quarter ended June 30, 2025, with an estimated twelve-month total positive impact to NIM-FTE of six basis points.
    • Total loans held for investment (“LHFI”) were $7.68 billion at June 30, 2025, reflecting an increase of $98.9 million, or 1.3%, compared to March 31, 2025. LHFI, excluding mortgage warehouse lines of credit (“MW LOC”), were $7.11 billion at June 30, 2025, reflecting a decrease of $71.7 million, or 1.0%, compared to March 31, 2025.
    • During the quarter ended June 30, 2025, we repurchased 136,399 shares of our common stock at an average price of $31.84 per share. Also, in July 2025, our board of directors approved a stock repurchase program authorizing the purchase of up to $50.0 million of the Company’s outstanding common stock over the next three years, replacing the existing plan which expires this month.
    • Book value per common share was $38.62 at June 30, 2025, reflecting an increase of $0.85, or 2.3%, compared to March 31, 2025 and $3.39, or 9.6%, compared to June 30, 2024. Tangible book value per common share(1) was $33.33 at June 30, 2025, reflecting an increase of $0.90, or 2.8%, compared to March 31, 2025 and $3.56, or 12.0%, compared to June 30, 2024.
    • As part of our Optimize Origin initiatives, we purchased additional shares of Argent Financial on July 1, 2025, which allowed us to reach the 20% ownership threshold. This will change our accounting methodology on this investment to the equity method, which will result in an increase in noninterest income.

    (1) Tangible book value per common share is a non-GAAP financial measure, please see the last few pages of this document for a reconciliation of this alternative financial measure to its most directly comparable GAAP measure.

    Results of Operations for the Quarter Ended June 30, 2025

    Net Interest Income and Net Interest Margin

    Net interest income for the quarter ended June 30, 2025, was $82.1 million, an increase of $3.7 million, or 4.7%, compared to the quarter ended March 31, 2025. The increase was primarily driven by a $4.1 million increase in interest income earned on LHFI and decreases of $1.6 million and $1.1 million in interest expense paid on interest-bearing deposits and subordinated debentures, respectively, partially offset by a $3.0 million decrease in interest income earned on interest-earning balances due from banks and a $1.1 million increase in interest expense on FHLB advances and other borrowings.

    The increase in average LHFI principal balances and the impact of one more calendar day during the quarter ended June 30, 2025, resulted in interest income increases of $3.1 million and $1.3 million, respectively, when compared to the quarter ended March 31, 2025. The increase in average LHFI principal balances was primarily driven by increases of $191.1 million and $64.1 million in MW LOC and commercial and industrial loans, respectively, partially offset by a decrease of $77.1 million in total average real estate loan balances.

    The $1.6 million decrease in interest expense on interest-bearing deposits was mainly due to a $232.8 million decrease in average interest-bearing deposits balance, during the quarter ended June 30, 2025, when compared to the quarter ended March 31, 2025. Due primarily to the seasonality of the deposits, interest-bearing public fund average deposit balances decreased $163.5 million during the quarter ended June 30, 2025.

    The $1.1 million decrease in interest expense on subordinated debentures was primarily driven by the redemption of $70.0 million in subordinated debentures during the quarter ended March 31, 2025, in conjunction with our Optimize Origin initiatives.

    The $3.0 million decrease in interest income earned on average interest-earning balances due from banks was primarily driven by a $267.4 million decrease in average interest-earning balances due from banks.

    The $97.8 million increase in average FHLB advances and other borrowings balance contributed $664,000 to the total $1.1 million increase in interest expense on FHLB advances and other borrowings during the quarter ended June 30, 2025. The remaining increase was primarily driven by an increase in the average rate paid on FHLB advances and other borrowings rising to 4.36% for the quarter ended June 30, 2025, from 2.75% for the quarter ended March 31, 2025. The average short-term FHLB balances were $98.4 million for the quarter ended June 30, 2025, compared to zero for the quarter ended March 31, 2025.

    The Federal Reserve Board sets various benchmark rates, including the federal funds rate, and thereby influences the general market rates of interest, including the loan and deposit rates offered by financial institutions. On September 18, 2024, the Federal Reserve reduced the federal funds target rate range by 50 basis points, to a range of 4.75% to 5.00%, marking the first rate reduction since early 2020. Subsequently, it implemented two additional reductions, with the current federal funds target range set to 4.25% to 4.50% on December 18, 2024. In total, the federal funds target range has decreased 100 basis points from its recent cycle high.

    Our NIM-FTE was 3.61% for the quarter ended June 30, 2025, representing 17- and 44-basis-point increases compared to the linked quarter and the quarter ended June 30, 2024, respectively. The yield earned on interest-earning assets for the quarter ended June 30, 2025, was 5.87%, an increase of eight basis points compared to the linked quarter and a decrease of 17 basis points compared to the quarter ended June 30, 2024. The average rate paid on total interest-bearing liabilities for the quarter ended June 30, 2025, was 3.25%, representing a decrease of five- and 73-basis points compared to the linked quarter and the quarter ended June 30, 2024, respectively. Additionally, total loans represented 83.6% of average interest-earning assets during the quarter ended June 30, 2025, up from 80.8% during the quarter ended March 31, 2025, providing a favorable shift in the asset mix that contributed to the margin improvement.

    During the quarter ended June 30, 2025, we executed a bond portfolio optimization strategy aimed at enhancing long-term yields and improving overall portfolio performance. This strategy involved selling lower-yielding available-for-sale investment securities and using the proceeds to purchase higher-yielding available-for-sale investment securities. As a result, we replaced securities with a total book value of $215.8 million and a weighted average yield of 2.60% with new securities totaling $201.8 million with a weighted average yield of 5.23%, realizing a loss of $14.4 million. The weighted average duration of the securities portfolio increased to 4.52 years as of June 30, 2025, compared to 4.10 years as of March 31, 2025. As part of the strategy, we also entered into interest rate swaps designated as fair value hedges on seven of these purchased securities with a total book value of $41.3 million, to help reduce potential volatility in the fair value of these securities due to changes in market rates. While this transaction resulted in a $0.35 negative impact to diluted EPS during the quarter ended June 30, 2025, due to the realized loss net of the increase in interest income, we believe the trade-off in yield represents an attractive opportunity. This transaction is expected to generate an estimated annual increase in net interest income of $5.6 million, with an estimated earn-back period of 2.6 years and an estimated twelve-month total positive impact to NIM-FTE of six basis points. We will continue to evaluate and identify any additional opportunities that may present themselves to maximize our return on our securities portfolio.

    Credit Quality

    The table below includes key credit quality information:

      At and For the Three Months Ended   Change   % Change
    (Dollars in thousands, unaudited) June 30,
    2025    		   March 31,
    2025    		   June 30,
    2024    		   Linked
    Quarter    		   Linked
    Quarter
    Past due LHFI(1) $ 67,626     $ 72,774     $ 66,276     $ (5,148 )   7.1 %
    Past due 30 to 89 days and still accruing   12,495       42,587       17,080       (30,092 )   70.7  
    Allowance for loan credit losses (“ALCL”)   92,426       92,011       100,865       415     0.5  
    Classified loans   127,637       127,676       118,254       (39 )   —  
    Total nonperforming LHFI   85,315       81,368       75,812       3,947     4.9  
    Provision for credit losses   2,862       3,444       5,231       (582 )   16.9  
    Net charge-offs   2,300       2,728       2,946       (428 )   15.7  
    Credit quality ratios(2):                  
    ALCL to nonperforming LHFI   108.33 %     113.08 %     133.05 %   (4.75) %   N/A
    ALCL to total LHFI   1.20       1.21       1.27       (0.01 )   N/A
    ALCL to total LHFI, adjusted(3)   1.29       1.28       1.34       0.01     N/A
    Classified loans to total LHFI   1.66       1.68       1.49       (0.02 )   N/A
    Nonperforming LHFI to LHFI   1.11       1.07       0.95       0.04     N/A
    Net charge-offs to total average LHFI (annualized)   0.12       0.15       0.15       (0.03 )   N/A

    ___________________________

      N/A = Not applicable.
    (1) Past due LHFI are defined as loans 30 days or more past due and includes past due nonperforming loans.
    (2) Please see the Loan Data schedule at the back of this document for additional information.
    (3) The ALCL to total LHFI, adjusted, is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.
       

    Loans past due 30-89 days and still accruing decreased $30.1 million for the current quarter compared to the linked quarter. The decrease was primarily driven by three loan relationships totaling $10.7 million that were paid off in the current quarter. Also contributing to the decrease in loans 30-89 days past due and still accruing were three loan relationships that are now over 90 days past due and nonperforming totaling $10.6 million and two loan relationships that are now no longer past due totaling $3.0 million.

    Nonperforming LHFI increased $3.9 million for the current quarter compared to the linked quarter, evidenced by an increase in the percentage of nonperforming LHFI to LHFI to 1.11% compared to 1.07% for the linked quarter. The increase in nonperforming loans was primarily driven by four relationships totaling $12.9 million at June 30, 2025. The increase was partially offset by $3.6 million in payments from two relationships and further reduced by total charge-offs of $2.9 million.

    Our results included a credit loss provision expense of $2.9 million during the quarter ended June 30, 2025, which includes a $2.7 million provision for loan credit losses, compared to provision for loan credit losses of $3.7 million for the linked quarter. Net charge-offs decreased $428,000 for the quarter ended June 30, 2025, when compared to the quarter ended March 31, 2025, primarily due to total charge-offs of $4.8 million in the linked quarter, consisting primarily of two commercial and industrial loan relationships with charge-offs totaling $2.6 million, with no comparably sized charge-offs during the current quarter.

    Noninterest Income

    Noninterest income for the quarter ended June 30, 2025, was $1.4 million, a decrease of $14.2 million, or 91.2%, from the linked quarter, primarily driven by a $14.4 million loss on sales of securities, net, and a $1.3 million decrease in insurance commission and fee income, respectively, in the current quarter. These decreases were partially offset by an increase of $902,000 in swap fee income.

    The loss on sales of securities, net, during the current quarter was due to the execution of the bond portfolio optimization strategy discussed above.

    The decrease in insurance commission and fee income was primarily driven by a seasonal increase in annual contingency fee income recognized in the first quarter with no comparable increase in the current quarter.

    The increase in swap fee income was due to both an attractive interest rate environment which is increasingly conducive to facilitating back-to-back swaps for our customers and an increased focus on the marketing of customer swaps as part of Optimize Origin.

    Noninterest Expense

    Noninterest expense for the quarter ended June 30, 2025, was $62.0 million, a decrease of $85,000, or 0.1% from the linked quarter. The decrease was primarily driven by a decrease of $1.4 million in occupancy and equipment, net, that was partially offset by increases of $549,000 and $475,000 in salaries and employee benefit expense and data processing expense, respectively.

    The $1.4 million decrease in occupancy and equipment, net was primarily due to cost incurred in the linked quarter in connection with the closure of banking centers as a part of Optimize Origin.

    The $549,000 increase in salaries and employee benefit expense was primarily due to the adjustment of the incentive compensation accrual which drove the salaries and employee benefit expense lower during the linked quarter.

    The $475,000 increase in data processing expense was primarily due to higher loan workflow software costs during the current quarter compared to the linked quarter.

    Financial Condition

    Loans

    • Total LHFI at June 30, 2025, were $7.68 billion, an increase of $98.9 million, or 1.3%, from $7.59 billion at March 31, 2025, and a decrease of $274.7 million, or 3.5%, compared to June 30, 2024.
    • The primary drivers of the increase during the quarter ended June 30, 2025, compared to the linked quarter, were increases in MW LOC, multi-family real estate and owner occupied commercial real estate of $170.6 million, $40.1 million and $34.8 million, respectively. These increases were partially offset by decreases of $144.9 million and $10.9 million in construction/land/land development loans and commercial and industrial loans, respectively.

    Securities

    • Total securities at June 30, 2025 were $1.14 billion, a decrease of $34.9 million, or 3.0%, from $1.18 billion at March 31, 2025, and a decrease of $34.1 million, or 2.9%, compared to June 30, 2024.
    • The decrease in securities was primarily due to maturities of short-term investments and net sales of available for sale securities during the current quarter.
    • In connection with Optimize Origin, we made a strategic decision to replace lower yielding available-for-sale securities with a total book value of $215.8 million with higher-yielding securities totaling $201.8 million. Additional details about this transaction is disclosed above in the Net Interest Income and Net Interest Margin section of this release.
    • Accumulated other comprehensive loss, net of taxes, primarily associated with unrealized losses within the available for sale portfolio, was $73.6 million at June 30, 2025, a decrease of $16.9 million, or 18.6%, from the linked quarter.
    • The weighted average effective duration for the total securities portfolio was 4.52 years as of June 30, 2025, compared to 4.10 years as of March 31, 2025.

    Deposits

    • Total deposits at June 30, 2025, were $8.12 billion, a decrease of $215.4 million, or 2.6%, compared to March 31, 2025, and a decrease of $387.8 million, or 4.6%, from June 30, 2024. Seasonality in our public fund deposits drove $99.7 million of the current quarter decline when compared to March 31, 2025.
    • The decrease in total deposits at June 30, 2025, compared to the linked quarter was primarily due to decreases of $159.0 million, $57.3 million and $47.1 million in interest-bearing demand deposits, time deposits (excluding brokered time deposits) and noninterest-bearing deposits, respectively. The decrease was partially offset by an increase of $92.6 million in money market deposits. 
    • At June 30, 2025 and March 31, 2025, noninterest-bearing deposits as a percentage of total deposits were 22.7%. At June 30, 2024, noninterest-bearing deposits as a percentage of total deposits were 21.9%.

    Borrowings

    • FHLB advances and other borrowings at June 30, 2025, were $127.8 million, an increase of $115.4 million from $12.5 million at March 31, 2025, and an increase of $87.1 million compared to June 30, 2024. The increase in the current quarter compared to the linked quarter is primarily due to an increase in FHLB short-term borrowings of $115.0 million used primarily to meet current liquidity needs.
    • Average FHLB advances were $104.5 million for the quarter ended June 30, 2025, an increase of $98.3 million from $6.2 million for the quarter ended March 31, 2025 and an increase of $68.8 million from June 30, 2024.

    Conference Call

    Origin will hold a conference call to discuss its second quarter 2025 results on Thursday, July 24, 2025, at 8:00 a.m. Central Time (9:00 a.m. Eastern Time). To participate in the live conference call, please dial +1 (929) 272-1574 (U.S. Local / International 1); +1 (857) 999-3259 (U.S. Local / International 2); +1 (888) 700-7550 (U.S. Toll Free), enter Conference ID: 05905 and request to be joined into the Origin Bancorp, Inc. (OBK) call. A simultaneous audio-only webcast may be accessed via Origin’s website at www.origin.bank under the investor relations, News & Events, Events & Presentations link or directly by visiting https://dealroadshow.com/e/ORIGINQ2.

    If you are unable to participate during the live webcast, the webcast will be archived on the Investor Relations section of Origin’s website at www.origin.bank, under Investor Relations, News & Events, Events & Presentations.

    About Origin

    Origin Bancorp, Inc. is a financial holding company headquartered in Ruston, Louisiana. Origin’s wholly owned bank subsidiary, Origin Bank, was founded in 1912 in Choudrant, Louisiana. Deeply rooted in Origin’s history is a culture committed to providing personalized relationship banking to businesses, municipalities, and personal clients to enrich the lives of the people in the communities it serves. Origin provides a broad range of financial services and currently operates more than 55 locations in Dallas/Fort Worth, East Texas, Houston, North Louisiana, Mississippi, South Alabama and the Florida Panhandle. For more information, visit www.origin.bank.

    Non-GAAP Financial Measures

    Origin reports its results in accordance with generally accepted accounting principles in the United States of America (“GAAP”). However, management believes that certain supplemental non-GAAP financial measures may provide meaningful information to investors that is useful in understanding Origin’s results of operations and underlying trends in its business. However, non-GAAP financial measures are supplemental and should be viewed in addition to, and not as an alternative for, Origin’s reported results prepared in accordance with GAAP. The following are the non-GAAP measures used in this release: PTPP earnings, PTPP ROAA, tangible book value per common share, ROATCE, and core efficiency ratio.

    Please see the last few pages of this release for reconciliations of non-GAAP measures to the most directly comparable financial measures calculated in accordance with GAAP.

    Forward-Looking Statements

     This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding Origin Bancorp, Inc’s (“Origin”, “we”, “our” or the “Company”) future financial performance, business and growth strategies, projected plans and objectives, and any expected purchases of its outstanding common stock, and related transactions and other projections based on macroeconomic and industry trends, including changes to interest rates by the Federal Reserve and the resulting impact on Origin’s results of operations, estimated forbearance amounts and expectations regarding the Company’s liquidity, including in connection with advances obtained from the FHLB, which are all subject to change and may be inherently unreliable due to the multiple factors that impact broader economic and industry trends, and any such changes may be material. Such forward-looking statements are based on various facts and derived utilizing important assumptions and current expectations, estimates and projections about Origin and its subsidiaries, any of which may change over time and some of which may be beyond Origin’s control. Statements or statistics preceded by, followed by or that otherwise include the words “assumes,” “anticipates,” “believes,” “estimates,” “expects,” “foresees,” “intends,” “plans,” “projects,” and similar expressions or future or conditional verbs such as “could,” “may,” “might,” “should,” “will,” and “would” and variations of such terms are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing words. Further, certain factors that could affect Origin’s future results and cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: (1) the impact of current and future economic conditions generally and in the financial services industry, nationally and within Origin’s primary market areas, including the impact of tariffs, as well as the financial stress on borrowers and changes to customer and client behavior as a result of the foregoing; (2) changes in benchmark interest rates and the resulting impacts on net interest income; (3) deterioration of Origin’s asset quality; (4) factors that can impact the performance of Origin’s loan portfolio, including real estate values and liquidity in Origin’s primary market areas; (5) the financial health of Origin’s commercial borrowers and the success of construction projects that Origin finances; (6) changes in the value of collateral securing Origin’s loans; (7) the impact of generative artificial intelligence; (8) Origin’s ability to anticipate interest rate changes and manage interest rate risk; (9) the impact of heightened regulatory requirements, reduced debit interchange and overdraft income and the possibility of facing related adverse business consequences if our total assets grow in excess of $10 billion as of December 31 of any calendar year; (10) the effectiveness of Origin’s risk management framework and quantitative models; (11) Origin’s inability to receive dividends from Origin Bank and to service debt, pay dividends to Origin’s common stockholders, repurchase Origin’s shares of common stock and satisfy obligations as they become due; (12) the impact of labor pressures; (13) changes in Origin’s operation or expansion strategy or Origin’s ability to prudently manage its growth and execute its strategy; (14) changes in management personnel; (15) Origin’s ability to maintain important customer relationships, reputation or otherwise avoid liquidity risks; (16) increasing costs as Origin grows deposits; (17) operational risks associated with Origin’s business; (18) significant turbulence or a disruption in the capital or financial markets and the effect of market disruption and interest rate volatility on our investment securities; (19) increased competition in the financial services industry, particularly from regional and national institutions, as well as from fintech companies; (20) compliance with governmental and regulatory requirements and changes in laws, rules, regulations, interpretations or policies relating to financial institutions; (21) periodic changes to the extensive body of accounting rules and best practices; (22) further government intervention in the U.S. financial system; (23) a deterioration of the credit rating for U.S. long-term sovereign debt; (24) Origin’s ability to comply with applicable capital and liquidity requirements, including its ability to generate liquidity internally or raise capital on favorable terms, including continued access to the debt and equity capital markets; (25) natural disasters and other adverse weather events, pandemics, acts of terrorism, war, and other matters beyond Origin’s control; (26) developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; (27) fraud or misconduct by internal or external actors (including Origin employees); (28) cybersecurity threats or security breaches and the cost of defending against them; (29) Origin’s ability to maintain adequate internal controls over financial and non-financial reporting; and (30) potential claims, damages, penalties, fines, costs and reputational damage resulting from pending or future litigation, regulatory proceedings and enforcement actions. For a discussion of these and other risks that may cause actual results to differ from expectations, please refer to the sections titled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” in Origin’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any updates to those sections set forth in Origin’s subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if Origin’s underlying assumptions prove to be incorrect, actual results may differ materially from what Origin anticipates. Accordingly, you should not place undue reliance on any forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and Origin does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

    New risks and uncertainties arise from time to time, and it is not possible for Origin to predict those events or how they may affect Origin. In addition, Origin cannot assess the impact of each factor on Origin’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. All forward-looking statements, expressed or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that Origin or persons acting on Origin’s behalf may issue. Annualized, pro forma, adjusted, projected, and estimated numbers are used for illustrative purposes only, are not forecasts, and may not reflect actual results.

    This press release contains projected financial information with respect to Origin, including with respect to certain goals and strategic initiatives of Origin and the anticipated benefits thereof. This projected financial information constitutes forward-looking information and is for illustrative purposes only and should not be relied upon as necessarily being indicative of future results. The assumptions and estimates underlying such projected financial information are inherently uncertain and are subject to significant business, economic (including interest rate), competitive, and other risks and uncertainties. Actual results may differ materially from the results contemplated by the projected financial information contained herein and the inclusion of such projected financial information in this release should not be regarded as a representation by any person that such actions will be taken or accomplished or that the results reflected in such projected financial information with respect thereto will be achieved.

    Contact:

    Investor Relations
    Chris Reigelman
    318-497-3177
    chris@origin.bank

    Media Contact
    Ryan Kilpatrick
    318-232-7472
    rkilpatrick@origin.bank

    Origin Bancorp, Inc.
    Selected Quarterly Financial Data
    (Unaudited) 
     
      Three Months Ended
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
                       
    Income statement and share amounts (Dollars in thousands, except per share amounts)
    Net interest income $ 82,136     $ 78,459     $ 78,349     $ 74,804     $ 73,890  
    Provision (benefit) for credit losses   2,862       3,444       (5,398 )     4,603       5,231  
    Noninterest income (loss)   1,368       15,602       (330 )     15,989       22,465  
    Noninterest expense   61,983       62,068       65,422       62,521       64,388  
    Income before income tax expense   18,659       28,549       17,995       23,669       26,736  
    Income tax expense   4,012       6,138       3,725       5,068       5,747  
    Net income $ 14,647     $ 22,411     $ 14,270     $ 18,601     $ 20,989  
    PTPP earnings(1) $ 21,521     $ 31,993     $ 12,597     $ 28,272     $ 31,967  
    Basic earnings per common share   0.47       0.72       0.46       0.60       0.68  
    Diluted earnings per common share   0.47       0.71       0.46       0.60       0.67  
    Dividends declared per common share   0.15       0.15       0.15       0.15       0.15  
    Weighted average common shares outstanding – basic   31,192,622       31,205,752       31,155,486       31,130,293       31,042,527  
    Weighted average common shares outstanding – diluted   31,327,818       31,412,010       31,308,805       31,239,877       31,131,829  
                       
    Balance sheet data                  
    Total LHFI $ 7,684,446     $ 7,585,526     $ 7,573,713     $ 7,956,790     $ 7,959,171  
    Total LHFI excluding MW LOC   7,109,698       7,181,395       7,224,632       7,461,602       7,452,666  
    Total assets   9,678,158       9,750,372       9,678,702       9,965,986       9,947,182  
    Total deposits   8,123,036       8,338,412       8,223,120       8,486,568       8,510,842  
    Total stockholders’ equity   1,205,769       1,180,177       1,145,245       1,145,673       1,095,894  
                       
    Performance metrics and capital ratios                  
    Yield on LHFI   6.33 %     6.33 %     6.47 %     6.67 %     6.58 %
    Yield on interest-earnings assets   5.87       5.79       5.91       6.09       6.04  
    Cost of interest-bearing deposits   3.20       3.23       3.61       4.01       3.95  
    Cost of total deposits   2.47       2.52       2.79       3.14       3.08  
    NIM – fully tax equivalent (“FTE”)   3.61       3.44       3.33       3.18       3.17  
    Return on average assets (annualized) (“ROAA”)   0.60       0.93       0.57       0.74       0.84  
    PTPP ROAA (annualized)(1)   0.89       1.32       0.50       1.13       1.28  
    Return on average stockholders’ equity (annualized) (“ROAE”)   4.94       7.79       4.94       6.57       7.79  
    Return on average tangible common equity (annualized) (“ROATCE”)(1)   5.74       9.09       5.78       7.74       9.25  
    Book value per common share $ 38.62     $ 37.77     $ 36.71     $ 36.76     $ 35.23  
    Tangible book value per common share(1)   33.33       32.43       31.38       31.37       29.77  
    Efficiency ratio(2)   74.23 %     65.99 %     83.85 %     68.86 %     66.82 %
    Core efficiency ratio(1)   73.77       65.33       82.79       67.48       65.55  
    Common equity tier 1 to risk-weighted assets(3)   13.47       13.57       13.32       12.46       12.15  
    Tier 1 capital to risk-weighted assets(3)   13.66       13.77       13.52       12.64       12.33  
    Total capital to risk-weighted assets(3)   15.68       15.81       16.44       15.45       15.16  
    Tier 1 leverage ratio(3)   11.70       11.47       11.08       10.93       10.70  
                                           

    __________________________

    (1) PTPP earnings, PTPP ROAA, tangible book value per common share, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their most directly comparable GAAP measures, please see the last few pages of this release.
    (2) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
    (3) June 30, 2025, ratios are estimated and calculated at the Company level, which is subject to the capital adequacy requirements of the Federal Reserve Board.
       
    Origin Bancorp, Inc.
    Selected Year-To-Date Financial Data
    (Unaudited)
     
      Six Months Ended June 30, 2025
    (Dollars in thousands, except per share amounts)   2025       2024  
           
    Income statement and share amounts  
    Net interest income $ 160,595     $ 147,213  
    Provision for credit losses   6,306       8,243  
    Noninterest income   16,970       39,720  
    Noninterest expense   124,051       123,095  
    Income before income tax expense   47,208       55,595  
    Income tax expense   10,150       11,974  
    Net income $ 37,058     $ 43,621  
    PTPP earnings(1) $ 53,514     $ 63,838  
    Basic earnings per common share   1.19       1.41  
    Diluted earnings per common share   1.18       1.40  
    Dividends declared per common share   0.30       0.30  
    Weighted average common shares outstanding – basic   31,199,151       31,011,930  
    Weighted average common shares outstanding – diluted   31,375,804       31,110,747  
           
    Performance metrics      
    Yield on LHFI   6.33 %     6.58 %
    Yield on interest-earning assets   5.83       6.01  
    Cost of interest-bearing deposits   3.21       3.90  
    Cost of total deposits   2.49       3.04  
    NIM-FTE   3.52       3.18  
    ROAA (annualized)   0.77       0.88  
    PTPP ROAA (annualized)(1)   1.11       1.29  
    ROAE (annualized)   6.34       8.17  
    ROATCE (annualized)(1)   7.38       9.73  
    Efficiency ratio(2)   69.86       65.85  
    Core efficiency ratio(1)   69.29       65.40  
                   

    ____________________________

    (1) PTPP earnings, PTPP ROAA, ROATCE, and core efficiency ratio are either non-GAAP financial measures or use a non-GAAP contributor in the formula. For a reconciliation of these alternative financial measures to their most directly comparable GAAP measures, please see the last few pages of this release.
    (2) Calculated by dividing noninterest expense by the sum of net interest income plus noninterest income.
       
    Origin Bancorp, Inc.
    Consolidated Quarterly Statements of Income
    (Unaudited)
     
      Three Months Ended
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
                       
    Interest and dividend income (Dollars in thousands, except per share amounts)
    Interest and fees on loans $ 121,239     $ 117,075     $ 127,021     $ 133,195   $ 129,879
    Investment securities-taxable   7,692       8,076       6,651       6,536     6,606
    Investment securities-nontaxable   1,425       968       964       905     893
    Interest and dividend income on assets held in other financial institutions   4,281       6,424       5,197       3,621     4,416
    Total interest and dividend income   134,637       132,543       139,833       144,257     141,794
    Interest expense                  
    Interest-bearing deposits   50,152       51,779       59,511       67,051     65,469
    FHLB advances and other borrowings   1,216       96       88       482     514
    Subordinated indebtedness   1,133       2,209       1,885       1,920     1,921
    Total interest expense   52,501       54,084       61,484       69,453     67,904
    Net interest income   82,136       78,459       78,349       74,804     73,890
    Provision (benefit) for credit losses   2,862       3,444       (5,398 )     4,603     5,231
    Net interest income after provision (benefit) for credit losses   79,274       75,015       83,747       70,201     68,659
    Noninterest income                  
    Insurance commission and fee income   6,661       7,927       5,441       6,928     6,665
    Service charges and fees   4,927       4,716       4,801       4,664     4,862
    Other fee income   2,809       2,301       2,152       2,114     2,404
    Mortgage banking revenue   1,369       915       1,151       1,153     1,878
    Swap fee income   1,435       533       116       106     44
    (Loss) gain on sales of securities, net   (14,448 )     —       (14,617 )     221     —
    Limited partnership investment (loss) income   (1,909 )     (1,692 )     (62 )     375     68
    Change in fair value of equity investments   —       —       —       —     5,188
    Other income   524       902       688       428     1,356
    Total noninterest income (loss)   1,368       15,602       (330 )     15,989     22,465
    Noninterest expense                  
    Salaries and employee benefits   38,280       37,731       36,405       38,491     38,109
    Occupancy and equipment, net   7,187       8,544       7,913       6,298     7,009
    Data processing   3,432       2,957       3,414       3,470     3,468
    Office and operations   3,337       2,972       2,883       2,984     3,072
    Intangible asset amortization   1,768       1,761       1,800       1,905     2,137
    Regulatory assessments   1,345       1,392       1,535       1,791     1,842
    Advertising and marketing   1,158       1,133       1,929       1,449     1,328
    Professional services   1,285       1,250       2,064       2,012     1,303
    Electronic banking   1,359       1,354       1,377       1,308     1,238
    Loan-related expenses   669       599       431       751     1,077
    Franchise tax expense   688       675       884       721     815
    Other expenses   1,475       1,700       4,787       1,341     2,990
    Total noninterest expense   61,983       62,068       65,422       62,521     64,388
    Income before income tax expense   18,659       28,549       17,995       23,669     26,736
    Income tax expense   4,012       6,138       3,725       5,068     5,747
    Net income $ 14,647     $ 22,411     $ 14,270     $ 18,601   $ 20,989
     
    Origin Bancorp, Inc.
    Consolidated Balance Sheets
    (Unaudited)
     
    (Dollars in thousands) June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
    Assets                  
    Cash and due from banks $ 113,918     $ 112,888     $ 132,991     $ 159,337     $ 137,615  
    Interest-bearing deposits in banks   220,193       373,314       337,258       161,854       150,435  
    Total cash and cash equivalents   334,111       486,202       470,249       321,191       288,050  
    Securities:                  
    AFS   1,126,721       1,161,368       1,102,528       1,160,965       1,160,048  
    Held to maturity, net of allowance for credit losses   11,093       11,094       11,095       11,096       11,616  
    Securities carried at fair value through income   6,218       6,512       6,512       6,533       6,499  
    Total securities   1,144,032       1,178,974       1,120,135       1,178,594       1,178,163  
    Non-marketable equity securities held in other financial institutions   75,181       71,754       71,643       67,068       64,010  
    Loans held for sale   8,878       10,191       10,494       7,631       18,291  
    LHFI   7,684,446       7,585,526       7,573,713       7,956,790       7,959,171  
    Less: ALCL   92,426       92,011       91,060       95,989       100,865  
    LHFI, net of ALCL   7,592,020       7,493,515       7,482,653       7,860,801       7,858,306  
    Premises and equipment, net   122,618       123,847       126,620       126,751       121,562  
    Cash surrender value of bank-owned life insurance   41,265       41,021       40,840       40,602       40,365  
    Goodwill   128,679       128,679       128,679       128,679       128,679  
    Other intangible assets, net   36,444       38,212       37,473       39,272       41,177  
    Accrued interest receivable and other assets   194,930       177,977       189,916       195,397       208,579  
    Total assets $ 9,678,158     $ 9,750,372     $ 9,678,702     $ 9,965,986     $ 9,947,182  
    Liabilities and Stockholders’ Equity                  
    Noninterest-bearing deposits $ 1,841,684     $ 1,888,808     $ 1,900,651     $ 1,893,767     $ 1,866,622  
    Interest-bearing deposits excluding brokered interest-bearing deposits, if any   5,450,710       5,536,636       5,301,243       5,137,940       4,984,817  
    Time deposits   805,642       862,968       941,000       1,023,252       1,022,589  
    Brokered deposits   25,000       50,000       80,226       431,609       636,814  
    Total deposits   8,123,036       8,338,412       8,223,120       8,486,568       8,510,842  
    FHLB advances and other borrowings   127,843       12,488       12,460       30,446       40,737  
    Subordinated indebtedness   89,657       89,599       159,943       159,861       159,779  
    Accrued expenses and other liabilities   131,853       129,696       137,934       143,438       139,930  
    Total liabilities   8,472,389       8,570,195       8,533,457       8,820,313       8,851,288  
    Stockholders’ equity:                  
    Common stock   156,124       156,220       155,988       155,837       155,543  
    Additional paid-in capital   537,819       538,790       537,366       535,662       532,950  
    Retained earnings   585,387       575,578       557,920       548,419       534,585  
    Accumulated other comprehensive loss   (73,561 )     (90,411 )     (106,029 )     (94,245 )     (127,184 )
    Total stockholders’ equity   1,205,769       1,180,177       1,145,245       1,145,673       1,095,894  
    Total liabilities and stockholders’ equity $ 9,678,158     $ 9,750,372     $ 9,678,702     $ 9,965,986     $ 9,947,182  
     
    Origin Bancorp, Inc.
    Loan Data
    (Unaudited)
     
      At and For the Three Months Ended
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
                       
    LHFI (Dollars in thousands)
    Owner occupied commercial real estate $ 972,788     $ 937,985     $ 975,947     $ 991,671     $ 959,850  
    Non-owner occupied commercial real estate   1,455,771       1,445,864       1,501,484       1,533,093       1,563,152  
    Construction/land/land development   653,748       798,609       864,011       991,545       1,017,389  
    Residential real estate – single family   1,465,535       1,465,192       1,432,129       1,414,013       1,421,027  
    Multi-family real estate   529,899       489,765       425,460       434,317       398,202  
    Total real estate loans   5,077,741       5,137,415       5,199,031       5,364,639       5,359,620  
    Commercial and industrial   2,011,178       2,022,085       2,002,634       2,074,037       2,070,947  
    MW LOC   574,748       404,131       349,081       495,188       506,505  
    Consumer   20,779       21,895       22,967       22,926       22,099  
    Total LHFI   7,684,446       7,585,526       7,573,713       7,956,790       7,959,171  
    Less: ALCL   92,426       92,011       91,060       95,989       100,865  
    LHFI, net $ 7,592,020     $ 7,493,515     $ 7,482,653     $ 7,860,801     $ 7,858,306  
                       
    Nonperforming assets(1)                  
    Nonperforming LHFI                  
    Commercial real estate $ 12,814     $ 5,465     $ 4,974     $ 2,776     $ 2,196  
    Construction/land/land development   17,720       17,694       18,505       26,291       26,336  
    Residential real estate(2)   37,996       40,749       36,221       14,313       13,493  
    Commercial and industrial   16,655       17,325       15,120       20,486       33,608  
    Consumer   130       135       182       407       179  
    Total nonperforming LHFI   85,315       81,368       75,002       64,273       75,812  
    Other real estate owned/repossessed assets   1,991       1,990       3,635       6,043       6,827  
    Total nonperforming assets $ 87,306     $ 83,358     $ 78,637     $ 70,316     $ 82,639  
    Classified assets $ 129,628     $ 129,666     $ 122,417     $ 113,529     $ 125,081  
    Past due LHFI(3)   67,626       72,774       42,437       38,838       66,276  
    Past due 30 to 89 days and still accruing   12,495       42,587       18,015       20,170       17,080  
                       
    Allowance for loan credit losses                  
    Balance at beginning of period $ 92,011     $ 91,060     $ 95,989     $ 100,865     $ 98,375  
    Provision (benefit) for loan credit losses   2,715       3,679       (5,489 )     4,644       5,436  
    Loans charged off   3,700       4,848       2,025       11,226       3,706  
    Loan recoveries   1,400       2,120       2,585       1,706       760  
    Net charge-offs (recoveries)   2,300       2,728       (560 )     9,520       2,946  
    Balance at end of period $ 92,426     $ 92,011     $ 91,060     $ 95,989     $ 100,865  
                       
    Credit quality ratios                  
    Total nonperforming assets to total assets   0.90 %     0.85 %     0.81 %     0.71 %     0.83 %
    Nonperforming LHFI to LHFI   1.11       1.07       0.99       0.81       0.95  
    Past due LHFI to LHFI   0.88       0.96       0.56       0.49       0.83  
    Past due 30 to 89 days and still accruing to LHFI   0.16       0.56       0.24       0.25       0.21  
    ALCL to nonperforming LHFI   108.33       113.08       121.41       149.35       133.05  
    ALCL to total LHFI   1.20       1.21       1.20       1.21       1.27  
    ALCL to total LHFI, adjusted(4)   1.29       1.28       1.25       1.28       1.34  
    Net charge-offs (recoveries) to total average LHFI (annualized)   0.12       0.15       (0.03 )     0.48       0.15  
     

    ____________________________

    (1) Nonperforming assets consist of nonperforming/nonaccrual loans and property acquired through foreclosures or repossession, as well as bank-owned property not in use and listed for sale, if any.
    (2)  Includes multi-family real estate.
    (3) Past due LHFI are defined as loans 30 days or more past due and includes past due nonperforming loans.
    (4) The ALCL to total LHFI, adjusted is calculated by excluding the ALCL for MW LOC loans from the total LHFI ALCL in the numerator and excluding the MW LOC loans from the LHFI in the denominator. Due to their low-risk profile, MW LOC loans require a disproportionately low allocation of the ALCL.
       
    Origin Bancorp, Inc.
    Average Balances and Yields/Rates
    (Unaudited)
     
      Three Months Ended
      June 30, 2025   March 31, 2025   June 30, 2024
      Average Balance   Yield/Rate   Average Balance   Yield/Rate   Average Balance   Yield/Rate
                           
    Assets (Dollars in thousands)
    Commercial real estate $ 2,407,632   5.78 %   $ 2,448,099   5.82 %   $ 2,497,490   5.91 %
    Construction/land/land development   739,601   6.92       821,754   6.87       1,058,972   6.98  
    Residential real estate(1)   1,955,422   5.62       1,909,922   5.53       1,787,829   5.48  
    Commercial and industrial (“C&I”)   2,068,175   7.30       2,004,034   7.37       2,128,486   7.87  
    MW LOC   480,587   6.86       289,521   7.07       430,885   7.57  
    Consumer   21,851   7.29       22,709   7.45       22,396   8.06  
    LHFI   7,673,268   6.33       7,496,039   6.33       7,926,058   6.58  
    Loans held for sale   11,422   6.92       8,590   6.18       14,702   6.84  
    Loans receivable   7,684,690   6.33       7,504,629   6.33       7,940,760   6.58  
    Investment securities-taxable   980,430   3.15       1,021,904   3.21       1,046,301   2.54  
    Investment securities-nontaxable   175,101   3.26       140,875   2.79       143,232   2.51  
    Non-marketable equity securities held in other financial institutions   77,240   6.63       71,669   2.35       56,270   6.53  
    Interest-earning balances due from banks   276,372   4.36       543,821   4.48       254,627   5.53  
    Total interest-earning assets   9,193,833   5.87       9,282,898   5.79       9,441,190   6.04  
    Noninterest-earning assets   522,090         525,317         567,035    
    Total assets $ 9,715,923       $ 9,808,215       $ 10,008,225    
                           
    Liabilities and Stockholders’ Equity                    
    Liabilities                      
    Interest-bearing liabilities                      
    Savings and interest-bearing transaction accounts $ 5,409,357   3.17 %   $ 5,538,710   3.14 %   $ 5,130,224   3.80 %
    Time deposits   868,703   3.45       972,176   3.69       1,534,679   4.46  
    Total interest-bearing deposits   6,278,060   3.20       6,510,886   3.23       6,664,903   3.95  
    FHLB advances and other borrowings   111,951   4.36       14,148   2.75       41,666   4.96  
    Subordinated indebtedness   89,633   5.07       124,133   7.22       159,973   4.83  
    Total interest-bearing liabilities   6,479,644   3.25       6,649,167   3.30       6,866,542   3.98  
    Noninterest-bearing liabilities                      
    Noninterest-bearing deposits   1,881,301         1,837,365         1,894,141    
    Other liabilities   164,647         154,934         163,273    
    Total liabilities   8,525,592         8,641,466         8,923,956    
    Stockholders’ Equity   1,190,331         1,166,749         1,084,269    
    Total liabilities and stockholders’ equity $ 9,715,923       $ 9,808,215       $ 10,008,225    
    Net interest spread     2.62 %       2.49 %       2.06 %
    NIM     3.58         3.43         3.15  
    NIM-FTE(2)     3.61         3.44         3.17  
     

    ____________________________

    (1) Includes multi-family real estate.
    (2) In order to present pre-tax income and resulting yields on tax-exempt investments comparable to those on taxable investments, a tax-equivalent adjustment has been computed. This adjustment also includes income tax credits received on Qualified School Construction Bonds.
       
    Origin Bancorp, Inc.
    Notable Items
    (Unaudited)
     
      At and For the Three Months Ended
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
      $ Impact   EPS
    Impact(1)    		   $ Impact   EPS
    Impact(1)    		   $ Impact   EPS
    Impact(1)    		   $ Impact   EPS
    Impact(1)    		   $ Impact   EPS
    Impact(1)
                                           
      (Dollars in thousands, except per share amounts)
    Notable interest income items:                                    
    Interest income reversal on relationships impacted by questioned banker activity $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ (1,206 )   $ (0.03 )
    Notable interest expense items:                                    
    OID amortization – subordinated debenture redemption   —       —       (681 )     (0.02 )     —       —       —       —       —       —  
    Notable provision expense items:                                    
    Provision release (expense) related to questioned banker activity   —       —       —       —       3,212       0.08       —       —       (3,212 )     (0.08 )
    Provision release (expense) on relationships impacted by questioned banker activity   —       —       375       0.01       —       —       —       —       (4,131 )     (0.11 )
    Notable noninterest income items(2):                                
    (Loss) gain on sales of securities, net   (14,448 )     (0.36 )     —       —       (14,617 )     (0.37 )     221       0.01       —       —  
    Gain on sub-debt repurchase   —       —       —       —       —       —       —       —       81       —  
    Positive valuation adjustment on non-marketable equity securities   —       —       —       —       —       —       —       —       5,188       0.13  
    Net (loss) gain on OREO properties(2)   (158 )     —       (212 )     (0.01 )     198       —       —       —       800       0.02  
    BOLI payout   —       —       208       0.01       —       —       —       —       —       —  
    Notable noninterest expense items:                                
    Operating expense related to questioned banker activity   (530 )     (0.01 )     (543 )     (0.01 )     (4,069 )     (0.10 )     (848 )     (0.02 )     (1,452 )     (0.04 )
    Operating expense related to strategic Optimize Origin initiatives   (428 )     (0.01 )     (1,615 )     (0.04 )     (1,121 )     (0.03 )     —       —       —       —  
    Employee Retention Credit   —       —       213       0.01       1,651       0.04       —       —       —       —  
    Total notable items $ (15,564 )     (0.39 )   $ (2,255 )     (0.06 )   $ (14,746 )     (0.37 )   $ (627 )     (0.02 )   $ (3,932 )     (0.10 )
     

    ____________________________

    (1) The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.
    (2) The $158,000 net loss on OREO properties for the quarter ended June 30, 2025, includes an $8,000 insurance settlement recovery that was included in noninterest income on the face of the income statement and $3,000 in repair costs that was included in noninterest expense. The $212,000 net loss on OREO properties for the quarter ended March 31, 2025, includes a $444,000 expected insurance settlement recovery that was included in noninterest income on the face of the income statement, and a $148,000 repair cost that was included in noninterest expense.
       
    Origin Bancorp, Inc.
    Notable Items – Continued
    (Unaudited)
     
      Six Months Ended June 30,
        2025       2024  
      $ Impact   EPS Impact(1)   $ Impact   EPS Impact(1)
                   
      (Dollars in thousands, except per share amounts)
    Notable interest income items:              
    Interest income reversal on relationships impacted by questioned banker activity $ —     $ —     $ (1,206 )   $ (0.03 )
    Notable interest expense items:              
    OID amortization -subordinated debenture redemption   (681 )     (0.02 )     —       —  
    Notable provision expense items:              
    Provision expense related to questioned banker activity   —       —       (3,212 )     (0.08 )
    Provision release (expense) on relationships impacted by questioned banker activity   375       0.01       (4,131 )     (0.10 )
    Notable noninterest income items:              
    MSR gain (impairment)   —       —       410       0.01  
    Loss on sales of securities, net   (14,448 )     (0.36 )     (403 )     (0.01 )
    Gain on sub-debt repurchase   —       —       81       —  
    Positive valuation adjustment on non-marketable equity securities   —       —       5,188       0.13  
    Net (loss) gain on OREO properties(2)   (370 )     (0.01 )     800       0.02  
    BOLI payout   208       0.01       —       —  
    Notable noninterest expense items:              
    Operating expense related to questioned banker activity   (1,073 )     (0.03 )     (1,452 )     (0.04 )
    Operating expense related to strategic Optimize Origin initiatives   (2,043 )     (0.05 )     —       —  
    Employee Retention Credit   213       0.01       —       —  
    Total notable items $ (17,819 )     (0.45 )   $ (3,925 )     (0.10 )
     

    ____________________________

    (1) The diluted EPS impact is calculated using a 21% effective tax rate. The total of the diluted EPS impact of each individual line item may not equal the calculated diluted EPS impact on the total notable items due to rounding.
    (2) The $370,000 net loss on OREO properties for the six months ended June 30, 2025, includes a $452,000 insurance settlement recovery that was included in noninterest income on the face of the income statement and a $151,000 repair cost that was included in noninterest expense.
       
    Origin Bancorp, Inc.
    Non-GAAP Financial Measures
    (Unaudited)
     
      At and For the Three Months Ended
      June 30,
    2025    		   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024
                       
      (Dollars in thousands, except per share amounts)
    Calculation of PTPP earnings:                  
    Net income $ 14,647     $ 22,411     $ 14,270     $ 18,601     $ 20,989  
    Provision (benefit) for credit losses   2,862       3,444       (5,398 )     4,603       5,231  
    Income tax expense   4,012       6,138       3,725       5,068       5,747  
    PTPP earnings (non-GAAP) $ 21,521     $ 31,993     $ 12,597     $ 28,272     $ 31,967  
                       
    Calculation of PTPP ROAA:                  
    PTPP earnings $ 21,521     $ 31,993     $ 12,597     $ 28,272     $ 31,967  
    Divided by number of days in the quarter   91       90       92       92       91  
    Multiplied by the number of days in the year   365       365       366       366       366  
    PTPP earnings, annualized $ 86,320     $ 129,749     $ 50,114     $ 112,473       128,571  
    Divided by total average assets   9,715,923       9,808,215       9,978,543       9,985,836       10,008,225  
    ROAA (annualized) (GAAP)   0.60 %     0.93 %     0.57 %     0.74 %     0.84 %
    PTPP ROAA (annualized) (non-GAAP)   0.89       1.32       0.50       1.13       1.28  
                       
    Calculation of tangible book value per common share:
    Total common stockholders’ equity $ 1,205,769     $ 1,180,177     $ 1,145,245     $ 1,145,673     $ 1,095,894  
    Goodwill   (128,679 )     (128,679 )     (128,679 )     (128,679 )     (128,679 )
    Other intangible assets, net   (36,444 )     (38,212 )     (37,473 )     (39,272 )     (41,177 )
    Tangible common equity   1,040,646       1,013,286       979,093       977,722       926,038  
    Divided by common shares outstanding at the end of the period   31,224,718       31,244,006       31,197,574       31,167,410       31,108,667  
    Book value per common share (GAAP) $ 38.62     $ 37.77     $ 36.71     $ 36.76     $ 35.23  
    Tangible book value per common share (non-GAAP)   33.33       32.43       31.38       31.37       29.77  
                       
    Calculation of ROATCE:                
    Net income $ 14,647     $ 22,411     $ 14,270     $ 18,601     $ 20,989  
    Divided by number of days in the quarter   91       90       92       92       91  
    Multiplied by number of days in the year   365       365       366       366       366  
    Annualized net income $ 58,749     $ 90,889     $ 56,770     $ 74,000     $ 84,417  
                       
    Total average common stockholders’ equity $ 1,190,331     $ 1,166,749     $ 1,149,228     $ 1,125,697     $ 1,084,269  
    Average goodwill   (128,679 )     (128,679 )     (128,679 )     (128,679 )     (128,679 )
    Average other intangible assets, net   (37,459 )     (38,254 )     (38,646 )     (40,487 )     (42,563 )
    Average tangible common equity   1,024,193       999,816       981,903       956,531       913,027  
                       
    ROAE (annualized) (GAAP)   4.94 %     7.79 %     4.94 %     6.57 %     7.79 %
    ROATCE (annualized) (non-GAAP)   5.74       9.09       5.78       7.74       9.25  
                       
    Calculation of core efficiency ratio:                  
    Total noninterest expense $ 61,983     $ 62,068     $ 65,422     $ 62,521     $ 64,388  
    Insurance and mortgage noninterest expense   (8,460 )     (8,230 )     (8,497 )     (8,448 )     (8,402 )
    Adjusted total noninterest expense   53,523       53,838       56,925       54,073       55,986  
                       
    Net interest income $ 82,136     $ 78,459     $ 78,349     $ 74,804     $ 73,890  
    Insurance and mortgage net interest income   (2,924 )     (2,815 )     (2,666 )     (2,578 )     (2,407 )
    Total noninterest income   1,368       15,602       (330 )     15,989       22,465  
    Insurance and mortgage noninterest income   (8,030 )     (8,842 )     (6,592 )     (8,081 )     (8,543 )
    Adjusted total revenue   72,550       82,404       68,761       80,134       85,405  
                       
    Efficiency ratio (GAAP)   74.23 %     65.99 %     83.85 %     68.86 %     66.82 %
    Core efficiency ratio (non-GAAP)   73.77       65.33       82.79       67.48       65.55  
     
    Origin Bancorp, Inc.
    Non-GAAP Financial Measures – Continued
    (Unaudited)
     
      Six Months Ended June 30,
        2025       2024  
           
      (Dollars in thousands, except per share amounts)
    Calculation of PTPP earnings:      
    Net income $ 37,058     $ 43,621  
    Provision for credit losses   6,306       8,243  
    Income tax expense   10,150       11,974  
    PTPP earnings (non-GAAP) $ 53,514     $ 63,838  
           
    Calculation of PTPP ROAA:      
    PTPP Earnings $ 53,514     $ 63,838  
    Divided by the year-to-date number of days   181       182  
    Multiplied by number of days in the year   365       366  
    Annualized PTPP Earnings $ 107,915     $ 128,378  
           
    Divided by total average assets $ 9,761,814     $ 9,934,730  
    ROAA (annualized) (GAAP)   0.77 %     0.88 %
    PTPP ROAA (annualized) (non-GAAP)   1.11       1.29  
           
    Calculation of ROATCE:    
    Net income $ 37,058     $ 43,621  
    Divided by the year-to-date number of days   181       182  
    Multiplied by number of days in the year   365       366  
    Annualized net income $ 74,730     $ 87,721  
           
    Total average common stockholders’ equity $ 1,178,605     $ 1,073,487  
    Average goodwill   (128,679 )     (128,679 )
    Average other intangible assets, net   (37,854 )     (43,631 )
    Average tangible common equity   1,012,072       901,177  
           
    ROAE (annualized) (GAAP)   6.34 %     8.17 %
    ROATCE (annualized) (non-GAAP)   7.38       9.73  
           
    Calculation of core efficiency ratio:      
    Total noninterest expense $ 124,051     $ 123,095  
    Insurance and mortgage noninterest expense   (16,690 )     (16,447 )
    Adjusted total noninterest expense   107,361       106,648  
           
    Net interest income $ 160,595     $ 147,213  
    Insurance and mortgage net interest income   (5,739 )     (5,202 )
    Total noninterest income   16,970       39,720  
    Insurance and mortgage noninterest income   (16,872 )     (18,666 )
    Adjusted total revenue   154,954       163,065  
           
    Efficiency ratio (non-GAAP)   69.86 %     65.85 %
    Core efficiency ratio (non-GAAP)   69.29       65.40  
                   

    The MIL Network –

  • MIL-OSI: American Coastal Insurance Corporation Schedules Second Quarter Financial Results and Conference Call

    Source: GlobeNewswire (MIL-OSI)

    ST. PETERSBURG, Fla., July 23, 2025 (GLOBE NEWSWIRE) — American Coastal Insurance Corporation (Nasdaq Ticker: ACIC) (“the Company”, “American Coastal” or “ACIC”), the insurance holding company of American Coastal Insurance Company (“AmCoastal”), announced today that it expects to release its financial results for the second quarter ended June 30, 2025, on Wednesday, August 6, 2025, after the close of the market, and will conduct its quarterly conference call at 5:00 p.m. ET.

    The conference call will include live remarks followed by a question and answer (Q&A) session. Interested parties are invited to participate in the conference call and should dial-in 10 minutes before the conference call is scheduled to begin.

    Second Quarter 2025 Conference Call Details:
    Wednesday, August 6, 2025 – 5:00 p.m. ET

    Participant Dial-In Numbers:

    United States: 877-445-9755
    International: 201-493-6744
       

    To listen to the conference call via webcast, please visit the Company website and click on the webcast link at the top of the page or click here. The webcast will be archived and accessible for approximately 30 days following the call.

    About American Coastal Insurance Corporation:
    American Coastal Insurance Corporation (amcoastal.com) is the holding company of the insurance carrier, American Coastal Insurance Company, which was founded in 2007 for the purpose of insuring Condominium and Homeowner Association properties, and apartments in the state of Florida. American Coastal Insurance Company has an exclusive partnership for distribution of Condominium Association properties in the state of Florida with AmRisc Group (amriscgroup.com), one of the largest Managing General Agents in the country specializing in hurricane-exposed properties. American Coastal Insurance Company has earned a Financial Stability Rating of “A”, Exceptional’ from Demotech, and maintains an “A-” insurance financial strength rating with a Positive outlook by Kroll. ACIC maintains a ‘BBB-’ issuer rating with a Positive outlook by Kroll.

    Contact Information:
    Alexander Baty
    Vice President, Finance & Investor Relations, American Coastal Insurance Corporation
    investorrelations@amcoastal.com
    (727) 425-8076

    Karin Daly
    Investor Relations, Vice President, The Equity Group
    kdaly@theequitygroup.com
    (212) 836-9623

    The MIL Network –

  • MIL-OSI: Northrim BanCorp Earns $11.8 Million, or $2.09 Per Diluted Share, in Second Quarter 2025

    Source: GlobeNewswire (MIL-OSI)

    ANCHORAGE, Alaska, July 23, 2025 (GLOBE NEWSWIRE) — Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $11.8 million, or $2.09 per diluted share, in the second quarter of 2025, compared to $13.3 million, or $2.38 per diluted share, in the first quarter of 2025, and $9.0 million, or $1.62 per diluted share, in the second quarter a year ago. The increase in second quarter 2025 profitability as compared to the second quarter a year ago was primarily the result of an increase in net interest income, higher purchased receivable income, and increased mortgage banking income, which were partially offset by a higher provision for credit losses, higher other operating expenses, and a higher provision for income taxes. Net interest income increased primarily due to higher loan balances and higher yields on earning assets. Purchased receivable income increased primarily due to the Company’s acquisition of Sallyport Commercial Finance, LLC (“Sallyport or SCF”), which was completed on October 31, 2024. Sallyport and its direct and indirect subsidiaries provide services and products related to purchased receivable factoring and asset-based lending in the United States, Canada, and the United Kingdom.

    Dividends per share in the second quarter of 2025 remained consistent with the first quarter of 2025 at $0.64 per share as compared to $0.61 per share in the second quarter of 2024.

    “Strong loan growth, increasing asset yields, and stable funding costs drove record net interest income in the second quarter of this year,” said Mike Huston, Northrim’s President and Chief Executive Officer. “We continue to attract new customers to Northrim and believe we have an opportunity to steadily increase our market share over the next few years.”

    Second Quarter 2025 Highlights:

    • Net interest income in the second quarter of 2025 increased 7% to $33.6 million compared to $31.3 million in the first quarter of 2025 and increased 24% compared to $27.1 million in the second quarter of 2024.
    • Net interest margin on a tax equivalent basis (“NIMTE”)* was 4.72% for the second quarter of 2025, up 11-basis points from the first quarter of 2025 and up 42-basis points from the second quarter a year ago.
    • Return on average assets (“ROAA”) was 1.48% and return on average equity (“ROAE”) was 16.37% for the second quarter of 2025 compared to ROAA of 1.76 and ROAE of 19.70 in the prior quarter and ROAA of 1.31% and ROAE of 14.84% for the second quarter of 2024.
    • Portfolio loans were $2.20 billion at June 30, 2025, up 4% from the preceding quarter and up 17% from a year ago, primarily due to new customer relationships and expanding market share, as well as retaining certain mortgages originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”). The Company sold $61 million in consumer mortgages in the second quarter of 2025 that were included in loans held for investment as of the end of 2024 to reduce the concentration of residential real estate loans and to provide additional liquidity for future commercial and construction loan growth.
    • Total deposits were $2.81 billion at June 30, 2025, up 1% from the preceding quarter, and up 14% from $2.46 billion a year ago. Non-interest bearing demand deposits increased 5% from the preceding quarter and increased 10% year-over-year to $777.9 million at June 30, 2025 and represent 28% of total deposits.
    • The average cost of interest-bearing deposits was 2.04% at June 30, 2025, up slightly from 2.01% at March 31, 2025 and down from 2.21% at June 30, 2024.
    • Mortgage loan originations were $277.1 million in the second quarter of 2025, up from $121.6 million in the first quarter of 2025 and up from $181.5 million in the second quarter a year ago. Mortgage loans funded for sale were $249.7 million in the second quarter of 2025, compared to $108.5 million in the first quarter of 2025 and $152.3 million in the second quarter of 2024.
    Financial Highlights Three Months Ended
    (Dollars in thousands, except per share data) June 30, 2025 March 31, 2025 December 31,
    2024    		 September 30,
    2024    		 June 30, 2024
    Total assets $ 3,243,760   $ 3,140,960   $ 3,041,869   $ 2,963,392   $ 2,821,668  
    Total portfolio loans $ 2,202,115   $ 2,124,330   $ 2,129,263   $ 2,007,565   $ 1,875,907  
    Total deposits $ 2,809,170   $ 2,777,977   $ 2,680,189   $ 2,625,567   $ 2,463,806  
    Total shareholders’ equity $ 290,219   $ 279,756   $ 267,116   $ 260,050   $ 247,200  
    Net income $ 11,778   $ 13,324   $ 10,927   $ 8,825   $ 9,020  
    Diluted earnings per share $ 2.09   $ 2.38   $ 1.95   $ 1.57   $ 1.62  
    Return on average assets   1.48 %   1.76 %   1.43 %   1.22 %   1.31 %
    Return on average shareholders’ equity   16.37 %   19.70 %   16.32 %   13.69 %   14.84 %
    NIM   4.66 %   4.55 %   4.41 %   4.29 %   4.24 %
    NIMTE*   4.72 %   4.61 %   4.47 %   4.35 %   4.30 %
    Efficiency ratio   64.68 %   63.54 %   66.96 %   66.11 %   68.78 %
    Total shareholders’ equity/total assets   8.95 %   8.91 %   8.78 %   8.78 %   8.76 %
    Tangible common equity/tangible assets*   7.50 %   7.41 %   7.23 %   8.28 %   8.24 %
    Book value per share $ 52.55   $ 50.67   $ 48.41   $ 47.27   $ 44.93  
    Tangible book value per share* $ 43.35   $ 41.47   $ 39.17   $ 44.36   $ 42.03  
    Dividends per share $ 0.64   $ 0.64   $ 0.62   $ 0.62   $ 0.61  
    Common stock outstanding   5,522,271     5,520,892     5,518,210     5,501,943     5,501,562  
                                   

    * References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (both of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. See the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures.

    Alaska Economic Update
    (Note: sources for information included in this section are included on page 14.)

    The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in May of 2025 was 4.7% compared to the U.S. rate of 4.2%. The rate has held steady in Alaska at 4.7% for eight consecutive months. The total number of payroll jobs in Alaska, not including uniformed military, increased 1.1% or 3,800 jobs between May of 2024 and May of 2025.  

    According to the DOL, the Oil and Gas sector had the largest growth rate in new jobs of 8.8% through May of this year compared to the prior year, up 700 direct jobs. The Construction sector added 700 positions for a year-over-year growth rate of 3.7% through May of 2025. The larger Health Care sector grew by 1,200 jobs for an annual growth rate of 2.9%. Transportation, Warehousing and Utilities added 600 jobs for a 2.3% growth rate over the same period. Professional and Business Services increased 500 jobs year-over-year through May of 2025, up 1.7%.

    The Government sector grew by 200 jobs for 0.2% growth, adding 400 State positions while losing 200 Federal jobs in Alaska over the same period. Declining sectors between May 2024 and May 2025 were Information down 100 jobs or (-2.3%), Manufacturing (primarily seafood processing) shrinking 200 positions (-2.1%), Wholesale Trade lost 100 jobs (-1.5%) and Financial Activities, down 100 jobs (-0.9%).

    Alaska’s seasonally adjusted personal income was $57.4 billion in the first quarter of 2025 according to the Federal Bureau of Economic Analysis (“BEA”). This was an annualized improvement in the first quarter of 6.4% for Alaska, compared to the national average of 6.7%. Alaska enjoyed an annual personal income improvement of 6% in 2024 compared to the U.S. increase of 5.4%, ranking Alaska 6th best in the nation. The $885 million increase in personal income in the first quarter of 2025 in Alaska came from a $352 million increase in net earnings from wages, $440 million growth in government transfer receipts, and a $92 million increase in investment income.

    Alaska’s Gross State Product (“GSP”) in the first quarter of 2025 reached $72 billion according to the BEA. Alaska’s inflation adjusted “real” GSP increased 1.5% in 2024 and decreased -1.8% annualized in the first quarter of 2025. The average U.S. GDP growth rate was 2.8% for 2025 and -0.5% in the first quarter of 2025. Alaska’s real GSP decrease in the first quarter of 2025 was primarily caused by a decrease in the Mining, Oil & Gas sector, somewhat offset by improvements in the Construction sector.

    Alaska exported $5.9 billion in goods to foreign countries in 2024 according to the U.S. International Trade Administration. China is the largest importer of Alaska’s products at $1.5 billion, followed by Australia at $804 million, Japan at $674 million and South Korea at $634 million in 2024. Fish and related maritime products accounted for the largest volume at $2.1 billion, followed by minerals and ores at $2 billion, and primary metals at $992 million in 2024. Oil & Gas exports are $380 million because the majority of Alaska’s production is refined and consumed in the United States. Chief Credit Officer and Bank Economist Mark Edwards stated, “President Trump’s significant changes to international tariffs has created uncertainty in trade markets. At this time, it is unknown how each country will respond. Alaska’s natural resources are highly valued commodities throughout the world. If issues arise with one country, such as China, it is most likely that Alaska’s products will be redirected to other markets like Japan and South Korea or sold domestically in the United States. Canada is the largest long-term investor in Alaska’s mining industry. This involves significant fixed capital investments made over decades that are unlikely to shift dramatically in the short-run. Alaska’s Legislature just passed a bill HJR-11 with an approval vote of 33-4 titled, Recognizing and honoring the relationship between Canada and Alaska. It highlights the deeply interconnected friendship between Alaska and Canada culturally, economically, and militarily.”

    According to the US Bureau of Labor Statistics, the Consumer Price Index (“CPI”) for the U.S. increased 2.7% between June of 2024 and June of 2025. In Alaska, the rate of CPI increase was lower at 1.6% for the same time period.   Food and beverage, housing costs, and medical care costs were the largest causes for inflation. Declining motor fuel prices, transportation, recreation and household furnishing costs have helped moderate inflationary pressures in Alaska.

    The monthly average price of Alaska North Slope (“ANS”) crude oil has ranged between $76.39 a barrel in January of 2025 and $67.07 in May of the prior year. The June 2025 average was $72.62. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 461 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2024.   Production rose to 469 thousand bpd in fiscal year ending June 30, 2025.   In the Spring 2025 Revenue Forecast published March 12, 2025, the DOR expects production to continue to grow to 663 thousand bpd by fiscal year 2034. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay. A partnership between Santos and Repsol is constructing the new Pikka field and ConocoPhillips is developing the large new Willow field. There are also a number of smaller new fields in the ANS that are contributing to the State of Alaska’s production growth estimates.

    The Alaska Permanent Fund is seeded annually by the oil wealth the State continues to save each year and has grown significantly over 40 years of successful investment. As of May 31, 2025 the fund’s value was $83.13 billion. According to the DOR it is scheduled to contribute $3.7 billion to Alaska General Fund in fiscal year 2025 for general government spending and to pay the annual dividend to Alaskan residents.

    According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 6.2% in 2024 to $510,064, following a 5.2% increase in 2023. This was the seventh consecutive year of price increases. Through June of 2025 prices have continued to increase on average 2.6% to $523,059.

    The average sales price for single family homes in the Matanuska Susitna Borough rose 3.8% in 2024 to $412,859, after increasing 4% in 2023. This continues a trend of average price increases for more than a decade in the region. Through June of 2025 prices have continued to increase on average 6.9% to $441,463. These two markets represent where the vast majority of the Bank’s residential lending activity occurs.

    The Alaska Multiple Listing Services reported a 3.4% increase in the number of units sold in Anchorage when comparing 2024 to 2023. The first six months of 2025 has seen a 4.8% increase in home sales compared to the first half of 2024 in Anchorage.  

    There was virtually no change in the number of homes sold in the Matanuska Susitna Borough, with only four fewer homes sold in 2024 than in 2023 or -0.2%. In the first six months of 2025 the number of units sold has increased 13.1% in the Matanuska Susitna Borough compared to the first half of 2024.

    Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.

    Review of Income Statement

    Consolidated Income Statement

    In the second quarter of 2025, Northrim generated a ROAA of 1.48% and a ROAE of 16.37%, compared to 1.76% and 19.70%, respectively, in the first quarter of 2025 and 1.31% and 14.84%, respectively, in the second quarter a year ago.

    Net Interest Income/Net Interest Margin

    Net interest income increased 7% to $33.6 million in the first quarter of 2025 compared to $31.3 million in the first quarter of 2025 and increased 24% compared to $27.1 million in the second quarter of 2024.   Interest expense on deposits increased to $10.3 million in the second quarter of 2025 compared to $9.9 million in the first quarter of 2025 and compared to $9.5 million in the second quarter of 2024.

    NIMTE* was 4.72% in the second quarter of 2025 up from 4.61% in the preceding quarter and 4.30% in the second quarter a year ago. NIMTE* increased 42 basis points in the second quarter of 2025 compared to the second quarter of 2024 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, higher yields on those assets as variable rate loans reset at higher rates which were only partially offset by an increase in borrowings. The weighted average interest rate for new loans booked in the second quarter of 2025 was 7.27% compared to 7.30% in the first quarter of 2025 and 7.90% in the second quarter a year ago. The yield on the investment portfolio in the second quarter of 2025 increased to 3.07% from 2.97% in the first quarter of 2025 and 2.82% in the second quarter of 2024. “We are continuing to see some benefits from the repricing of our loan portfolio and new production increasing our margin” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE* continues to remain above the peer average of 3.26% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of March 31, 2025.

    Provision for Credit Losses

    Northrim recorded a provision for credit losses of $2.0 million in the second quarter of 2025, which was comprised of a provision for credit losses on loans of $1.8 million, a $157,000 provision for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $18,000. This compares to a benefit to the provision for credit losses of $1.4 million in the first quarter of 2025, which was comprised of a benefit to the provision for credit losses on loans of $1.1 million, a $322,000 benefit for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $46,000. In the second quarter a year ago, Northrim recorded a benefit to the provision for credit losses of $120,000 which was comprised of a $134,000 provision for credit losses on loans and a $254,000 benefit to the provision for credit losses on unfunded commitments.

    The increase to the provision for credit losses on loans in the second quarter of 2025 as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances as well as an increase in estimated loss rates due to less favorable economic forecasts and trends in qualitative factors. The increase to the provision for unfunded commitments in the second quarter of 2025 was primarily due to an increase in estimated loss rates which was only partially offset by changes in mix of unfunded commitments.

    Nonperforming assets, net of government guarantees, decreased during the quarter to $11.9 million at June 30, 2025, compared to $12.3 million at March 31, 2025, and increased compared to $5.1 million at June 30, 2024. The increase in nonperforming assets, net of government guarantees at June 30, 2025 compared to June 30, 2024 is primarily the result of the acquisition of Sallyport in the fourth quarter of 2024.

    The allowance for credit losses on loans was 290% of nonperforming loans, net of government guarantees, at the end of the second quarter of 2025, compared to 262% three months earlier and 365% a year ago.

    Other Operating Income

    In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $16.6 million, or 33% of total second quarter 2025 revenues, as compared to $13.0 million, or 29% of revenues in the first quarter of 2025, and $9.6 million, or 26% of revenues in the second quarter of 2024. The increase in other operating income in the second quarter of 2025 as compared to the second quarter of 2024 was primarily the result of increased purchased receivable income due to the Company’s acquisition of Sallyport on October 31, 2024. Mortgage banking income in the second quarter of 2025 increased as compared to the first quarter of 2025 and second quarter of 2024 due to a higher volume of mortgage activity. See further discussion regarding mortgage activity contained under “Home Mortgage Lending” below.  

    Other Operating Expenses

    Operating expenses were $32.5 million in the second quarter of 2025, compared to $28.2 million in the first quarter of 2025, and $25.2 million in the second quarter of 2024. The increase in other operating expenses in the second quarter of 2025 compared to the first quarter of 2025 was primarily due to an increase in salaries and other personnel expense, including $980,000 in higher mortgage commissions expense due to higher mortgage volume, $763,000 in higher salary expense, a $760,000 increase in group medical expenses, and increases in profit share expense and payroll taxes. Additionally, marketing expense increased due to timing of annual charitable contributions. The increase in total other operating expenses in the second quarter of 2025 compared to the second quarter a year ago was primarily due to an increase in salaries and other personnel expense, the increase in compensation expense for Sallyport acquisition payments, and an increase in data processing expense. Total other operating expense increased $2.1 million in the Specialty Finance segment in the second quarter of 2025 compared to the second quarter of 2024 due to the acquisition of Sallyport on October 31, 2024.

    Income Tax Provision

    In the second quarter of 2025, Northrim recorded $4.0 million in state and federal income tax expense for an effective tax rate of 25.3%, compared to $4.3 million, or 24.2% in the first quarter of 2025 and $2.5 million, or 21.9% in the second quarter a year ago. The increase in the tax rate in the second quarter of 2025 as compared to the first quarter of 2025 and second quarter of 2024 is primarily the result of a decrease in tax credits and tax exempt interest income as a percentage of pre-tax income in 2025 as compared to 2024.

    Community Banking

    Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as ‘distressed or underserved non-metropolitan middle-income geographies’.

    Net interest income in the Community Banking segment totaled $30.0 million in the second quarter of 2025, compared to $28.2 million in the first quarter of 2025 and $24.3 million in the second quarter of 2024. Net interest income increased $5.7 million or 23% in the second quarter of 2025 as compared to the second quarter of 2024 mostly due to higher interest income on loans. This increase was only partially offset by lower interest income on investments and higher interest expense on deposits and borrowings.

    The provision for credit losses in the Community Banking segment was $1.3 million in the second quarter of 2025 compared to a benefit to the provision for credit losses of $1.8 million in the first quarter of 2025 and a benefit to the provision for credit losses of $184,000 in the same quarter a year ago. The increase to the provision for credit losses in the Community Banking segment in the second quarter of 2025 as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances as well as an increase in estimated loss rates due to less favorable economic forecasts and trends in qualitative factors. In the first quarter of 2025, the Company recorded a net benefit for credit losses in the Community Banking segment primarily due to changes in the Company’s loss rate regression models for commercial, commercial real estate, and construction loans. These decreases in the provision were only partially offset by increases in estimated loss rates for management’s assessment of economic conditions and an increase for higher loan balances.

    Other operating expenses in the Community Banking segment totaled $21.8 million in the second quarter of 2025, up $3.2 million or 17% from $18.6 million in the first quarter of 2025, and up $3.7 million or 20% from $18.1 million in the second quarter a year ago. The increase in the second quarter of 2025 as compared to the prior quarter and compared to the same quarter a year ago was primarily due to increases in salaries and other personnel expense, including $667,000 in higher salary expense, an $873,000 increase in group medical expenses, as well as increases in profit share expense and payroll taxes. Additionally, marketing expense increased due to timing of annual charitable contributions.

    The following tables provide highlights of the Community Banking segment of Northrim:

      Three Months Ended
    (Dollars in thousands, except per share data) June 30, 2025 March 31, 2025 December 31,
    2024    		 September 30,
    2024    		 June 30, 2024
    Net interest income $ 29,971 $ 28,151   $ 27,643 $ 25,928 $ 24,318  
    (Benefit) provision for credit losses   1,319   (1,768 )   771   1,492   (184 )
    Other operating income   3,268   2,703     2,535   3,507   2,451  
    Other operating expense   21,764   18,581     19,116   18,723   18,069  
    Income before provision for income taxes   10,156   14,041     10,291   9,220   8,884  
    Provision for income taxes   2,413   3,253     1,474   2,133   1,786  
    Net income $ 7,743 $ 10,788   $ 8,817 $ 7,087 $ 7,098  
    Weighted average shares outstanding, diluted   5,611,558   5,608,102     5,597,889   5,583,055   5,558,580  
    Diluted earnings per share attributable to Community Banking $ 1.37 $ 1.93   $ 1.58 $ 1.26 $ 1.27  
      Year-to-date
    (Dollars in thousands, except per share data) June 30, 2025 June 30, 2024
    Net interest income $ 58,122   $ 48,533
    (Benefit) provision for credit losses   (449 )   13
    Other operating income   5,971     4,919
    Other operating expense   40,345     35,247
    Income before provision for income taxes   24,197     18,192
    Provision for income taxes   5,666     3,752
    Net income Community Banking segment $ 18,531   $ 14,440
    Weighted average shares outstanding, diluted   5,611,734     5,562,025
    Diluted earnings per share $ 3.30   $ 2.59


    Home Mortgage Lending

    During the second quarter of 2025, mortgage loans funded for sale were $249.7 million, compared to $108.5 million in the first quarter of 2025, and $152.3 million in the second quarter of 2024.

    During the second quarter of 2025, the Bank purchased loans of $27.5 million from its subsidiary, Residential Mortgage, of which approximately half were jumbos, one-quarter were mortgages for second homes, and one-quarter were adjustable rate mortgages, with a weighted average interest rate of 6.71%, as compared to $13.1 million and 6.39% in the first quarter of 2025, and $29.2 million and 6.82% in the second quarter of 2024. Net interest income contributed $3.5 million to total Home Mortgage Lending revenue in the second quarter of 2025, up from $3.0 million in the prior quarter, and up from $2.8 million in the second quarter a year ago.

    The Company reclassified $100 million in consumer mortgages held for investment to held for sale in the first quarter of 2025 and recorded unrealized losses of $1.2 million related to this portfolio in the first quarter of 2025. In the second quarter of 2025, the Company sold $61 million of the $100 million that was reclassified to loans held for sale in the first quarter of 2025 for a total realized loss of $545,000.

    The Arizona, Colorado, and Pacific Northwest mortgage expansion markets were responsible for 22% of Residential Mortgage’s $216 million total production in the second quarter of 2025 (excluding the $61 million in mortgages sold noted above), 20% of $122 million total production in the first quarter of 2025, and 22% of $182 million total production in the second quarter of 2024.

    The provision for credit losses in the Home Mortgage Lending segment was $639,000 in the second quarter of 2025 compared to a benefit to the provision for credit losses of $307,000 in the first quarter of 2025 and a provision for credit loses of $64,000 in the second quarter of 2024. The increase in the provision for credit losses in the second quarter of 2025 in the Home Mortgage Lending segment as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances. The benefit to the provision for loan losses in the Home Mortgage Lending segment in the first quarter of 2025 was primarily the result of the reclassification of $100 million in mortgage loans to loans held for sale, which was only partially offset by an increase in the provision for loan losses due to changes in the Company’s loss rate regression models for home mortgage loans.

    The net change in fair value of mortgage servicing rights decreased mortgage banking income by $818,000 during the second quarter of 2025 compared to a decrease of $855,000 for the first quarter of 2025 and a decrease of $81,000 for the second quarter of 2024. Mortgage servicing revenue increased to $3.0 million in the second quarter of 2025 from $2.7 million in the prior quarter and increased from $2.2 million in the second quarter of 2024 due to an increase in production of Alaska Housing Finance Corporation (AHFC) mortgages, which contribute to servicing revenues at origination. In the second quarter of 2025, the Company’s servicing portfolio increased $69.3 million compared to a $24.0 million increase in the first quarter of 2025, and an increase of $41.8 million in the second quarter of 2024.

    As of June 30, 2025, Northrim serviced 6,458 loans in its $1.55 billion home-mortgage-servicing portfolio, a 5% increase compared to the $1.48 billion serviced as of the end of the first quarter of 2025, and a 41% increase from the $1.10 billion serviced a year ago.

    The following tables provide highlights of the Home Mortgage Lending segment of Northrim:

      Three Months Ended
    (Dollars in thousands, except per share data) June 30,
    2025    		 March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024
    Mortgage commitments $ 73,198   $ 68,258   $ 32,299   $ 77,591   $ 88,006  
               
    Mortgage loans funded for sale $ 249,680   $ 108,499   $ 162,530   $ 209,960   $ 152,339  
    Mortgage loans funded for investment   27,455     13,061     23,380     38,087     29,175  
    Total mortgage loans funded $ 277,135   $ 121,560   $ 185,910   $ 248,047   $ 181,514  
    Mortgage loan refinances to total fundings   10 %   11 %   11 %   6 %   6 %
    Mortgage loans serviced for others $ 1,553,987   $ 1,484,714   $ 1,460,720   $ 1,166,585   $ 1,101,800  
               
    Net realized and unrealized gains on mortgage loans sold and held for sale $ 5,091   $ 1,580   $ 3,747   $ 5,079   $ 3,189  
    Change in fair value of mortgage loan commitments, net   (110 )   660     (665 )   60     390  
    Total production revenue   4,981     2,240     3,082     5,139     3,579  
    Mortgage servicing revenue   2,957     2,696     2,847     2,583     2,164  
    Change in fair value of mortgage servicing rights:          
    Due to changes in model inputs of assumptions1   (355 )   (322 )   1,372     (566 )   239  
    Other2   (463 )   (533 )   (499 )   (402 )   (320 )
    Total mortgage servicing revenue, net   2,139     1,841     3,720     1,615     2,083  
    Other mortgage banking revenue   280     170     238     293     222  
    Total mortgage banking income $ 7,400   $ 4,251   $ 7,040   $ 7,047   $ 5,884  
               
    Net interest income $ 3,507   $ 3,046   $ 3,280   $ 2,941   $ 2,775  
    Provision (benefit) for credit losses   639     (307 )   305     571     64  
    Mortgage banking income   7,400     4,251     7,040     7,047     5,884  
    Other operating expense   7,593     6,490     7,198     7,643     6,697  
    Income before provision for income taxes   2,675     1,114     2,817     1,774     1,898  
    Provision for income taxes   746     310     842     497     532  
    Net income $ 1,929   $ 804   $ 1,975   $ 1,277   $ 1,366  
               
    Weighted average shares outstanding, diluted   5,611,558     5,608,102     5,597,889     5,583,055     5,558,580  
    Diluted earnings per share attributable to Home Mortgage Lending $ 0.34   $ 0.14   $ 0.35   $ 0.23   $ 0.25  

    1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.

      Year-to-date
    (Dollars in thousands, except per share data) June 30, 2025 June 30, 2024
    Mortgage loans funded for sale $ 358,179   $ 236,663  
    Mortgage loans funded for investment   40,516     46,578  
    Total mortgage loans funded $ 398,695   $ 283,241  
    Mortgage loan refinances to total fundings   10 %   6 %
         
    Net realized and unrealized gains on mortgage loans sold and held for sale $ 6,671   $ 5,168  
    Change in fair value of mortgage loan commitments, net   550     777  
    Total production revenue   7,221     5,945  
    Mortgage servicing revenue   5,653     3,725  
    Change in fair value of mortgage servicing rights:    
    Due to changes in model inputs of assumptions1   (677 )   528  
    Other2   (996 )   (634 )
    Total mortgage servicing revenue, net   3,980     3,619  
    Other mortgage banking revenue   450     351  
    Total mortgage banking income $ 11,651   $ 9,915  
         
    Net interest income $ 6,553   $ 5,007  
    Provision for credit losses   332     16  
    Mortgage banking income   11,651     9,915  
    Other operating expense   14,083     12,783  
    Income before provision for income taxes   3,789     2,123  
    Provision for income taxes   1,056     595  
    Net income Home Mortgage Lending segment $ 2,733   $ 1,528  
         
    Weighted average shares outstanding, diluted   5,611,734     5,562,025  
    Diluted earnings per share $ 0.48   $ 0.28  

    1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.

    Specialty Finance

    The Company’s Specialty Finance segment includes Northrim Funding Services and Sallyport. Northrim Funding Services is a division of the Bank and has offered factoring solutions to small businesses since 2004. Sallyport is a leading provider of factoring, asset-based lending and alternative working capital solutions to small and medium sized enterprises in the United States, Canada, and the United Kingdom that the Company acquired on October 31, 2024 in an all cash transaction valued at approximately $53.9 million. The composition of revenues for the Specialty Finance segment are primarily purchased receivable income, but also includes interest income from loans and other fee income.

    The acquisition of Sallyport included $1.1 million in one-time deal related costs which are reflected in other operating expenses for the fourth quarter of 2024 in the tables below. Total pre-tax income for Sallyport for the second quarter of 2025 was $1.3 million compared to $1.3 million in the first quarter of 2025 and $945,000 for the two months of operations in the fourth quarter of 2024, excluding transaction costs.

    Average purchased receivables and loan balances at Sallyport were $71.0 million for the second quarter of 2025 with a yield of 27.23% compared to average balances of $59.9 million for the first quarter of 2025 and a yield of 35.8%. The yield in the first quarter of 2025 included the recognition of $899,000 in nonaccrual fee income collected during the quarter related to two nonperforming receivables and the collection of a $350,000 line termination fee. The yield excluding these items for the first quarter of 2025 was 27.4%.

    The following tables provide highlights of the Specialty Finance segment of Northrim:

      Three Months Ended
    (Dollars in thousands, except per share data) June 30,
    2025    		 March 31,
    2025    		 December 31,
    2024    		 September 30,
    2024    		 June 30,
    2024
    Purchased receivable income $ 5,897 $ 6,150   $ 3,526   $ 1,033 $ 1,242
    Other operating income   75   (64 )   (68 )   —   —
    Interest income   782   596     407     158   170
    Total revenue   6,754   6,682     3,865     1,191   1,412
    Provision for credit losses   18   666     125     —   —
    Compensation expense – SCF acquisition payments   600   600     —     —   —
    Other operating expense   2,531   2,500     3,063     362   428
    Interest expense   668   496     489     185   210
    Total expense   3,817   4,262     3,677     547   638
    Income before provision for income taxes   2,937   2,420     188     644   774
    Provision for income taxes   831   688     53     183   218
    Net income Specialty Finance segment $ 2,106 $ 1,732   $ 135   $ 461 $ 556
    Weighted average shares outstanding, diluted   5,611,558   5,608,102     5,597,889     5,583,055   5,558,580
    Diluted earnings per share attributable to Specialty Finance $ 0.38 $ 0.31   $ 0.02   $ 0.08 $ 0.10
      Year-to-date
    (Dollars in thousands, except per share data) June 30, 2025 June 30, 2024
    Purchased receivable income $ 12,047 $ 2,587
    Other operating income   11   —
    Interest income   1,378   382
    Total revenue   13,436   2,969
    Provision for credit losses   684   —
    Compensation expense – SCF acquisition payments   1,200   —
    Other operating expense   5,031   802
    Interest expense   1,164   422
    Total expense   8,079   1,224
    Income before provision for income taxes   5,357   1,745
    Provision for income taxes   1,519   494
    Net income Specialty Finance segment $ 3,838 $ 1,251
    Weighted average shares outstanding, diluted   5,611,734   5,562,025
    Diluted earnings per share $ 0.69 $ 0.23


    Balance Sheet Review

    Northrim’s total assets were $3.24 billion at June 30, 2025, up 3% from the preceding quarter and up 15% from a year ago. Northrim’s loan-to-deposit ratio was 78% at June 30, 2025, up from 76% at both March 31, 2025 and June 30, 2024.

    At June 30, 2025, liquid assets, investments, and loans maturing within one year were $1.15 billion and our funds available for borrowing under our existing lines of credit were $507.9 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.

    Average interest-earning assets were $2.89 billion in the second quarter of 2025, up 4% from $2.78 billion in the first quarter of 2025 and up 12% from $2.57 billion in the second quarter a year ago. The average yield on interest-earning assets was 6.27% in the second quarter of 2025, up from 6.10% in the preceding quarter and up from 5.83% in the second quarter of 2024.

    Average investment securities decreased to $515.9 million in the second quarter of 2025, compared to $523.8 million in the first quarter of 2025 and $640.0 million in the second quarter a year ago. The average net tax equivalent yield on the securities portfolio was 3.07% for the second quarter of 2025, up from 2.97% in the preceding quarter and up from 2.82% in the year ago quarter. The average estimated duration of the investment portfolio at June 30, 2025, was approximately 2.4 years compared to approximately 2.5 years at June 30, 2024. As of June 30, 2025, $55.7 million of available for sale securities with a weighted average yield of 1.40% are scheduled to mature in the next six months, $106.8 million with a weighted average yield of 1.28% are scheduled to mature in six months to one year, and $145.0 million with a weighted average yield of 1.96% are scheduled to mature in the following year, representing a total of $307.5 million or 11% of earning assets that are scheduled to mature in the next 24 months.

    Total unrealized losses, net of tax, on available for sale securities decreased by $1.9 million in the second quarter of 2025 resulting in total unrealized loss, net of tax, of $3.6 million compared to $5.5 million at March 31, 2025, and $15.2 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.3 years. Total unrealized losses on held to maturity securities were $711,000 at June 30, 2025, compared to $1.1 million at March 31, 2025, and $3.0 million a year ago.

    Average interest bearing deposits in other banks decreased to $27.2 million in the second quarter of 2025 from $38.0 million in the first quarter of 2025 and increased from $17.4 million in the second quarter of 2024, as cash was used to fund loan growth and provide liquidity.

    Loans held for sale decreased to $127.1 million at June 30, 2025, compared to $159.6 million at March 31, 2025, largely due to the sale of $61 million consumer mortgage loans in the second quarter of 2025 that had been reclassified to loans held for sale from portfolio loans in the first quarter of 2025, and increased from $85.9 million a year ago, due to higher loan production by Residential Mortgage.

    Portfolio loans were $2.20 billion at June 30, 2025, up 4% from the preceding quarter and up 17% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $2.00 billion at June 30, 2025, up $59.1 million or 3% from the preceding quarter and up 21% from a year ago. This increase in the second quarter of 2025 was diversified throughout the loan portfolio including consumer mortgage loans increasing by $19 million, construction loans increasing by $31.2 million, commercial real estate owner-occupied loans increasing $17.1 million, and nonowner-occupied commercial real estate and multi-family loans increasing by $6.5 million from the preceding quarter. These increases were partially offset by a $3.8 million decrease in commercial loans. Average portfolio loans in the second quarter of 2025 were $2.17 billion, which was consistent with the preceding quarter after the sale of $61 million in consumer mortgage loans, and up 18% from a year ago. Yields on average portfolio loans in the second quarter of 2025 increased to 6.99% from 6.89% in the first quarter and increased from 6.87% in the second quarter of 2024. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.45% in the second quarter of 2025 as compared to 7.43% in the first quarter of 2025 and 8.26% in the second quarter of 2024.

    Northrim’s loans and credit lines are subject to approval procedures and amount limitations. These limitations apply to the borrower’s total outstanding indebtedness and commitments to us, including the indebtedness of any guarantor. Generally, Northrim is permitted to make loans to one borrower of up to 15% of the unimpaired capital and surplus of the Bank. The legal lending limit was $39.4 million at June 30, 2025. At June 30, 2025, Northrim had 22 relationships totaling $504.0 million in portfolio loans whose total direct and indirect commitments were greater than 50% of the legal lending limit.

    Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.81 billion at June 30, 2025, up 1% from $2.78 billion at March 31, 2025, and up 14% from $2.46 billion a year ago. “The increase in deposits in the second quarter of 2025 was consistent with our customers’ normal business cycles which typically result in increases in deposit balances in the second and third quarters and decreases in the first and fourth quarters,” said Ballard. At June 30, 2025, 75% of total deposits were held in business accounts and 25% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $60,000 as of June 30, 2025. Northrim had 27 customers with balances over $10 million as of June 30, 2025, which accounted for $731.1 million, or 27%, of total deposits. Demand deposits increased by 5% from the prior quarter and increased 10% from the prior year to $777.9 million at June 30, 2025. Demand deposits were 28% of total deposits at June 30, 2025 up from 27% at March 31, 2025 and were down from 29% of total deposits at June 30, 2024. Average interest-bearing deposits were up 1% to $2.03 billion with an average cost of 2.04% in the second quarter of 2025, compared to $2.00 billion and an average cost of 2.01% in the first quarter of 2025, and up 18% compared to $1.73 billion and an average cost of 2.21% in the second quarter of 2024. Uninsured deposits totaled $1.02 billion or 36% of total deposits as of June 30, 2025 compared to $1.08 billion or 40% of total deposits as of December 31, 2024.

    Shareholders’ equity was $290.2 million, or $52.55 book value per share, at June 30, 2025, compared to $279.8 million, or $50.67 book value per share, at March 31, 2025 and $247.2 million, or $44.93 book value per share, a year ago. Tangible book value per share* was $43.35 at June 30, 2025, compared to $41.47 at March 31, 2025, and $42.03 per share a year ago. The increase in shareholders’ equity in the second quarter of 2025 as compared to the first quarter of 2025 was largely the result of earnings of $11.8 million and an increase in the fair value of the available for sale securities portfolio, which increased $1.9 million, net of tax, which were only partially offset by dividends paid of $3.6 million. The Company did not repurchase any shares of common stock in the second quarter of 2025 and currently has no plans to repurchase shares this year. Tangible common equity to tangible assets* was 7.50% as of June 30, 2025, compared to 7.41% as of March 31, 2025 and 8.24% as of June 30, 2024. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 9.80% at June 30, 2025, compared to 9.76% at March 31, 2025, and 11.68% at June 30, 2024.

    Asset Quality

    Northrim believes it has a consistent lending approach throughout economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management.

    Nonperforming assets (“NPAs”) net of government guarantees were $11.9 million at June 30, 2025, down from $12.3 million at March 31, 2025 and up from $5.1 million a year ago. Of the NPAs at June 30, 2025, $4.2 million are attributable to the Community Banking segment and $7.5 million are attributable to the Specialty Finance segment.

    Net adversely classified loans were $35.8 million at June 30, 2025, as compared to $20.4 million at March 31, 2025, and $7.1 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. The increase in adversely classified loans, net of government guarantees, at June 30, 2025 as compared to the prior quarter is mostly attributable to two commercial relationships totaling $16.0 million. Net loan charge-offs were $140,000 in the second quarter of 2025, compared to net loan recoveries of $34,000 in the first quarter of 2025, and net loan recoveries of $26,000 in the second quarter of 2024. Additionally, Northrim had 13 loan modifications to borrowers experiencing financial difficulty totaling $3.3 million, net of government guarantees that had been modified in the last twelve months as of June 30, 2025.

    Northrim had $141.2 million, or 6% of portfolio loans, in the Healthcare sector, $127.2 million, or 6% of portfolio loans, in the Tourism sector, $121.0 million, or 5% of portfolio loans, in the Accommodations sector, $93.4 million, or 4% of portfolio loans, in the Retail sector, $84.2 million, or 4% of portfolio loans, in the Aviation (non-tourism) sector, $76.2 million, or 3% of portfolio loans, in the Fishing sector, and $59.5 million, or 3% in the Restaurants and Breweries sector as of June 30, 2025.

    Northrim estimates that $105.9 million, or approximately 5% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of June 30, 2025, and $1.5 million of these loans are adversely classified. As of June 30, 2025, Northrim has an additional $76.9 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and no unfunded commitments on adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.

    About Northrim BanCorp

    Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state and differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. The Bank has two wholly-owned subsidiaries, Sallyport Commercial Finance, LLC, a specialty finance company and Residential Mortgage Holding Company, LLC, a regional home mortgage company. Pacific Wealth Advisors, LLC is an affiliated company.

    www.northrim.com

    Forward-Looking Statement

    This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: descriptions of Northrim’s and Sallyport’s financial condition, results of operations, asset based lending volumes, asset and credit quality trends and profitability and statements about the expected financial benefits and other effects of the acquisition of Sallyport by Northrim Bank; expected cost savings, synergies and other financial benefits from the acquisition of Sallyport by Northrim Bank might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; the ability of Northrim and Sallyport to execute their respective business plans; potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives, including tariffs, on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; potential further increases in inflation, supply-chain constraints, and potential geopolitical instability, including the war in Ukraine and the conflict in the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward-looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.
    References:

    https://www.bea.gov/

    http://almis.labor.state.ak.us/

    http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx

    http://www.tax.state.ak.us/

    https://www.bls.gov/regions/west/news-release/consumerpriceindex_anchorage.htm

    https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx

    https://www.akleg.gov/basis/Bill/Text/34?Hsid=HJR011C

    https://www.trade.gov/data-visualization/tradestats-express-trade-partner-state

    https://tax.alaska.gov/programs/programs/reports/RSB.aspx?Year=2025&Type=Spring

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    https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials

    Contact: Mike Huston, President, CEO, and COO
      (907) 261-8750
      Jed Ballard, Chief Financial Officer
      (907) 261-3539
       
    Income Statement            
    (Dollars in thousands, except per share data) Three Months Ended   Year-to-date
    (Unaudited) June 30, March 31, June 30,   June 30, June 30,
        2025   2025     2024       2025   2024  
    Interest Income:            
    Interest and fees on loans $ 40,519 $ 37,470   $ 32,367     $ 77,989 $ 62,817  
    Interest on portfolio investments   3,765   3,675     4,310       7,440   8,830  
    Interest on deposits in banks   515   416     232       931   1,070  
    Total interest income   44,799   41,561     36,909       86,360   72,717  
    Interest Expense:            
    Interest expense on deposits   10,304   9,935     9,476       20,239   18,656  
    Interest expense on borrowings   903   329     380       1,232   561  
    Total interest expense   11,207   10,264     9,856       21,471   19,217  
    Net interest income   33,592   31,297     27,053       64,889   53,500  
                 
    Provision (benefit) for credit losses   1,976   (1,409 )   (120 )     567   29  
    Net interest income after provision for credit losses   31,616   32,706     27,173       64,322   53,471  
                 
    Other Operating Income:            
    Mortgage banking income   7,400   4,251     5,884       11,651   9,915  
    Purchased receivable income   5,897   6,100     1,242       12,047   2,587  
    Bankcard fees   1,153   1,074     1,105       2,227   2,022  
    Service charges on deposit accounts   726   677     572       1,403   1,121  
    Unrealized gain (loss) on marketable equity securities   78   (50 )   (60 )     28   254  
    Other income   1,386   988     834       2,324   1,522  
    Total other operating income   16,640   13,040     9,577       29,680   17,421  
                 
    Other Operating Expense:            
    Salaries and other personnel expense   20,854   17,223     16,627       38,077   32,044  
    Data processing expense   3,366   3,104     2,601       6,470   5,260  
    Occupancy expense   2,104   1,889     1,843       3,993   3,805  
    Professional and outside services   1,113   1,115     726       2,228   1,481  
    Marketing expense   1,042   672     690       1,714   1,203  
    Insurance expense   756   1,017     692       1,773   1,471  
    Compensation expense – SCF acquisition payments   600   600     —       1,200   —  
    OREO expense, net rental income and gains on sale   2   3     2       5   (389 )
    Other expense   2,651   2,548     2,013       5,199   3,957  
    Total other operating expense   32,488   28,171     25,194       60,659   48,832  
                 
    Income before provision for income taxes   15,768   17,575     11,556       33,343   22,060  
    Provision for income taxes   3,990   4,251     2,536       8,241   4,841  
    Net income $ 11,778 $ 13,324   $ 9,020     $ 25,102 $ 17,219  
                 
    Basic EPS $ 2.13 $ 2.41   $ 1.64     $ 4.54 $ 3.13  
    Diluted EPS $ 2.09 $ 2.38   $ 1.62     $ 4.47 $ 3.10  
    Weighted average shares outstanding, basic   5,521,811   5,519,998     5,500,588       5,520,905   5,500,083  
    Weighted average shares outstanding, diluted   5,611,558   5,608,102     5,558,580       5,611,734   5,562,025  
    Balance Sheet      
    (Dollars in thousands)      
    (Unaudited) June 30, March 31, June 30,
        2025     2025     2024  
           
    Assets:      
    Cash and due from banks $ 43,734   $ 29,671   $ 33,364  
    Interest bearing deposits in other banks   97,549     35,852     21,058  
    Investment securities available for sale, at fair value   429,421     463,096     584,964  
    Investment securities held to maturity   36,750     36,750     36,750  
    Marketable equity securities, at fair value   8,747     8,669     12,381  
    Investment in Federal Home Loan Bank stock   8,343     5,342     4,929  
    Loans held for sale   127,116     159,603     85,926  
           
    Portfolio loans   2,202,115     2,124,330     1,875,907  
    Allowance for credit losses, loans   (22,585 )   (20,922 )   (17,694 )
    Net portfolio loans   2,179,530     2,103,408     1,858,213  
    Purchased receivables, net   109,098     95,489     25,722  
    Mortgage servicing rights, at fair value   27,506     26,814     21,077  
    Other real estate owned, net   —     —     —  
    Premises and equipment, net   36,501     37,070     40,393  
    Lease right of use asset   7,033     7,632     8,244  
    Goodwill and intangible assets   50,824     50,824     15,967  
    Other assets   81,608     80,740     72,680  
    Total assets $ 3,243,760   $ 3,140,960   $ 2,821,668  
           
    Liabilities:      
    Demand deposits $ 777,948   $ 742,560   $ 704,471  
    Interest-bearing demand   1,196,048     1,187,465     906,010  
    Savings deposits   248,141     256,650     238,156  
    Money market deposits   196,166     193,842     195,159  
    Time deposits   390,867     397,460     420,010  
    Total deposits   2,809,170     2,777,977     2,463,806  
    Other borrowings   63,026     13,136     43,961  
    Junior subordinated debentures   10,310     10,310     10,310  
    Lease liability   7,077     7,682     8,269  
    Other liabilities   63,958     52,099     48,122  
    Total liabilities   2,953,541     2,861,204     2,574,468  
           
    Shareholders’ Equity:      
    Total shareholders’ equity   290,219     279,756     247,200  
    Total liabilities and shareholders’ equity $ 3,243,760   $ 3,140,960   $ 2,821,668  
           

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Composition of Portfolio Loans                        
      June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024
      Balance % of
    total    		   Balance % of
    total    		   Balance % of
    total    		   Balance % of
    total    		   Balance % of
    total
    Commercial loans $ 569,753   27 %   $ 573,593   27 %   $ 518,148   24 %   $ 492,414   24 %   $ 495,781   26 %
    Commercial real estate:                            
    Owner occupied properties   447,561   20 %     430,442   20 %     420,060   20 %     412,827   20 %     383,832   20 %
    Nonowner occupied and                            
    multifamily properties   696,766   31 %     690,277   32 %     619,431   29 %     584,302   31 %     551,130   30 %
    Residential real estate:                            
    1-4 family properties                            
    secured by first liens   206,905   9 %     188,219   9 %     270,535   13 %     248,514   12 %     222,026   12 %
    1-4 family properties                            
    secured by junior liens &                            
    revolving secured by first liens   60,118   3 %     53,836   3 %     48,857   2 %     45,262   2 %     41,258   2 %
    1-4 family construction   36,005   2 %     34,017   2 %     39,789   2 %     39,794   2 %     29,510   2 %
    Construction loans   187,442   8 %     156,211   7 %     214,068   10 %     185,362   9 %     154,009   8 %
    Consumer loans   7,570   — %     7,424   — %     7,562   — %     7,836   — %     6,679   — %
    Subtotal   2,212,120         2,134,019         2,138,450         2,016,311         1,884,225    
    Unearned loan fees, net   (10,005 )       (9,689 )       (9,187 )       (8,746 )       (8,318 )  
    Total portfolio loans $ 2,202,115       $ 2,124,330       $ 2,129,263       $ 2,007,565       $ 1,875,907    
                                 
    Composition of Deposits                        
      June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024
      Balance % of total   Balance % of total   Balance % of total   Balance % of total   Balance % of total
    Demand deposits $ 777,948 28 %   $ 742,560 27 %   $ 706,225 27 %   $ 763,595 29 %   $ 704,471 29 %
    Interest-bearing demand   1,196,048 42 %     1,187,465 43 %     1,108,404 41 %     979,238 37 %     906,010 36 %
    Savings deposits   248,141 9 %     256,650 9 %     250,900 9 %     245,043 9 %     238,156 10 %
    Money market deposits   196,166 7 %     193,842 7 %     196,290 7 %     204,821 8 %     195,159 8 %
    Time deposits   390,867 14 %     397,460 14 %     418,370 16 %     435,870 17 %     420,010 17 %
    Total deposits $ 2,809,170     $ 2,777,977     $ 2,680,189     $ 2,628,567     $ 2,463,806  


    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Asset Quality June 30,   March 31,   June 30,  
        2025     2025     2024  
    Nonaccrual loans – Community Banking $ 4,180   $ 4,274   $ 4,233  
    Nonaccrual loans – Home Mortgage Lending   197     221     253  
    Nonaccrual loans – Specialty Finance   3,484     3,573     344  
    Nonaccrual loans – Total   7,861     8,068     4,830  
    Loans 90 days past due and accruing – Community Banking   —     —     17  
    Loans 90 days past due and accruing – Total   —     —     17  
    Total nonperforming loans – Community Banking   4,180     4,274     4,250  
    Total nonperforming loans – Home Mortgage Lending   197     221     253  
    Total nonperforming loans – Specialty Finance   3,484     3,573     344  
    Total nonperforming loans – Total   7,861     8,068     4,847  
    Nonperforming loans guaranteed by gov’t – Community Banking   70     80     —  
    Nonperforming loans guaranteed by gov’t – Total   70     80     —  
    Net nonperforming loans – Community Banking   4,110     4,194     4,250  
    Net nonperforming loans – Home Mortgage Lending   197     221     253  
    Net nonperforming loans – Specialty Finance   3,484     3,573     344  
    Net nonperforming loans – Total   7,791     7,988     4,847  
                 
    Repossessed assets – Community Banking   50     297     297  
    Repossessed assets – Total   50     297     297  
                 
    Nonperforming purchased receivables – Specialty Finance   4,017     4,007     —  
                 
    Net nonperforming assets – Community Banking   4,160     4,491     4,547  
    Net nonperforming assets – Home Mortgage Lending   197     221     253  
    Net nonperforming assets – Specialty Finance   7,501     7,580     344  
    Net nonperforming assets – Total $ 11,858   $ 12,292   $ 5,144  
                 
    Adversely classified loans, net of gov’t guarantees – Community Banking $ 32,128   $ 16,592   $ 6,006  
    Adversely classified loans, net of gov’t guarantees – Home Mortgage Lending   223     252     718  
    Adversely classified loans, net of gov’t guarantees – Specialty Finance   3,484     3,573     344  
    Adversely classified loans, net of gov’t guarantees – Total $ 35,835   $ 20,417   $ 7,068  
                 
    Special mention loans, net of gov’t guarantees – Community Banking $ 3,966   $ 14,496   $ 8,902  
    Special mention loans, net of gov’t guarantees – Home Mortgage Lending   790     637     —  
    Special mention loans, net of gov’t guarantees – Total $ 4,756   $ 15,133   $ 8,902  
    Asset Quality, Continued June 30,   March 31,   June 30,  
        2025       2025       2024    
    Nonperforming loans, net of government guarantees / portfolio loans   0.35   %   0.38   %   0.26   %
    Nonperforming loans, net of government guarantees / portfolio loans,            
    net of government guarantees   0.38   %   0.40   %   0.28   %
    Nonperforming assets, net of government guarantees / total assets   0.37   %   0.39   %   0.18   %
    Nonperforming assets, net of government guarantees / total assets            
    net of government guarantees   0.38   %   0.41   %   0.19   %
                 
    Loans 30-89 days past due and accruing, net of government guarantees /       %    
    portfolio loans   0.06   %   0.04   %   0.03   %
    Loans 30-89 days past due and accruing, net of government guarantees /            
    portfolio loans, net of government guarantees   0.06   %   0.04   %   0.04   %
                 
    Allowance for credit losses for loans / portfolio loans   1.03   %   0.98   %   0.94   %
    Allowance for credit losses for loans / portfolio loans, net of gov’t guarantees   1.10   %   1.06   %   1.01   %
    Allowance for credit losses for loans / nonperforming loans, net of            
    government guarantees   290   %   262   %   365   %
                 
    Gross loan charge-offs for the quarter – Community Banking $3     $50     $—    
    Gross loan charge-offs for the quarter – Specialty Finance   152       —       —    
    Gross loan charge-offs for the quarter – Total   155       50       —    
                 
    Gross loan recoveries for the quarter – Community Banking   (15 )     (84 )     (26 )  
    Gross loan recoveries for the quarter – Home Mortgage Lending   —       —       —    
    Gross loan recoveries for the quarter – Specialty Finance   —       —       —    
    Gross loan recoveries for the quarter – Total ($15 )   ($84 )   ($26 )  
                 
    Net loan (recoveries) charge-offs for the quarter – Community Banking ($12 )   ($34 )   ($26 )  
    Net loan (recoveries) charge-offs for the quarter – Specialty Finance   152       —       —    
    Net loan (recoveries) charge-offs for the quarter – Total $140     ($34 )   ($26 )  
                 
    Net loan charge-offs (recoveries) year-to-date – Community Banking ($46 )   ($34 )   ($68 )  
    Net loan charge-offs (recoveries) year-to-date – Specialty Finance   152       —       —    
    Net loan charge-offs (recoveries) year-to-date – Total $106     ($34 )   ($68 )  
                 
    Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter   0.01   %   —   %   —   %
                 
    Net loan charge-offs (recoveries) year-to-date / average loans,            
    year-to-date annualized   0.01   %   (0.01 ) %   (0.01 ) %
                 
    Allowance for credit losses for purchased receivables / purchased receivables   3.05   %   3.72   %   —   %
                 
    Net purchased receivable charge-offs (recoveries) for the quarter $281     $—     $—    
                 
    Net purchased receivable charge-offs (recoveries) year-to-date $281     $—     $—    
                 
    Net purchased receivable charge-offs (recoveries) for the quarter /            
    average purchased receivables, for the quarter   0.27   % NA   NA  
                 
    Net purchased receivable charge-offs (recoveries) year-to-date / average            
    purchased receivables, year-to-date annualized   0.61   % NA   NA  


    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Average Balances, Yields, and Rates                
      Three Months Ended
      June 30, 2025   March 31, 2025   June 30, 2024
        Average     Average     Average
      Average Tax Equivalent   Average Tax Equivalent   Average Tax Equivalent
      Balance Yield/Rate   Balance Yield/Rate   Balance Yield/Rate
    Assets                
    Interest bearing deposits in other banks $ 27,216   7.60 %   $ 37,969   4.44 %   $ 17,352   5.27 %
    Portfolio investments   515,916   3.07 %     523,753   2.97 %     639,980   2.82 %
    Loans held for sale   173,675   6.50 %     46,223   5.86 %     65,102   6.08 %
    Portfolio loans   2,172,482   6.99 %     2,173,425   6.89 %     1,845,832   6.87 %
    Total interest-earning assets   2,889,289   6.27 %     2,781,370   6.10 %     2,568,266   5.83 %
    Nonearning assets   306,206         293,415         204,509    
    Total assets $ 3,195,495       $ 3,074,785       $ 2,772,775    
                     
    Liabilities and Shareholders’ Equity                
    Interest-bearing deposits $ 2,029,100   2.04 %   $ 2,002,594   2.01 %   $ 1,725,013   2.21 %
    Borrowings   86,404   4.14 %     37,081   3.55 %     38,390   3.92 %
    Total interest-bearing liabilities   2,115,504   2.12 %     2,039,675   2.04 %     1,763,403   2.25 %
                     
    Noninterest-bearing demand deposits   737,112         697,534         706,339    
    Other liabilities   54,320         63,348         58,549    
    Shareholders’ equity   288,559         274,228         244,484    
    Total liabilities and shareholders’ equity $ 3,195,495       $ 3,074,785       $ 2,772,775    
    Net spread   4.15 %     4.06 %     3.58 %
    NIM   4.66 %     4.55 %     4.24 %
    NIMTE*   4.72 %     4.61 %     4.30 %
    Cost of funds   1.57 %     1.52 %     1.60 %
    Average portfolio loans to average                
    interest-earning assets   75.19 %       78.14 %       71.87 %  
    Average portfolio loans to average total deposits   78.54 %       80.49 %       75.92 %  
    Average non-interest deposits to average                
    total deposits   26.65 %       25.83 %       29.05 %  
    Average interest-earning assets to average                
    interest-bearing liabilities   136.58 %       136.36 %       145.64 %  


    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Average Balances, Yields, and Rates          
      Year-to-date
      June 30, 2025   June 30, 2024
        Average     Average
      Average Tax Equivalent   Average Tax Equivalent
      Balance Yield/Rate   Balance Yield/Rate
    Assets          
    Interest bearing deposits in other banks $ 32,563   5.77 %   $ 39,457   5.36 %
    Portfolio investments   519,813   3.02 %     655,458   2.82 %
    Loans held for sale   110,301   6.35 %     48,868   6.10 %
    Portfolio loans   2,172,950   6.94 %     1,819,629   6.81 %
    Total interest-earning assets   2,835,627   6.19 %     2,563,412   5.76 %
    Nonearning assets   299,848         202,819    
    Total assets $ 3,135,475       $ 2,766,231    
               
    Liabilities and Shareholders’ Equity          
    Interest-bearing deposits $ 2,015,920   2.02 %   $ 1,728,468   2.17 %
    Borrowings   61,879   3.96 %     31,167   3.55 %
    Total interest-bearing liabilities   2,077,799   2.08 %     1,759,635   2.19 %
               
    Noninterest-bearing demand deposits   717,432         705,736    
    Other liabilities   58,809         59,478    
    Shareholders’ equity   281,435         241,382    
    Total liabilities and shareholders’ equity $ 3,135,475       $ 2,766,231    
    Net spread   4.11 %     3.57 %
    NIM   4.61 %     4.20 %
    NIMTE*   4.66 %     4.26 %
    Cost of funds   1.55 %     1.57 %
    Average portfolio loans to average interest-earning assets   76.63 %       70.98 %  
    Average portfolio loans to average total deposits   79.50 %       74.75 %  
    Average non-interest deposits to average total deposits   26.25 %       28.99 %  
    Average interest-earning assets to average interest-bearing liabilities   136.47 %       145.68 %  


    Additional Financial Information
    (Dollars in thousands, except per share data)
    (Unaudited)

    Capital Data (At quarter end)            
      June 30, 2025   March 31, 2025   June 30, 2024  
    Book value per share $52.55     $50.67     $44.93    
    Tangible book value per share* $43.35     $41.47     $42.03    
    Total shareholders’ equity/total assets   8.95   %   8.91   %   8.76   %
    Tangible Common Equity/Tangible Assets*   7.50   %   7.41   %   8.24   %
    Tier 1 Capital / Risk Adjusted Assets   9.80   %   9.76   %   11.68   %
    Total Capital / Risk Adjusted Assets   10.71   %   10.62   %   12.58   %
    Tier 1 Capital / Average Assets   7.99   %   8.02   %   9.17   %
    Shares outstanding   5,522,271       5,520,892       5,501,562    
    Total unrealized loss on AFS debt securities, net of income taxes ($3,571 )   ($5,452 )   ($15,197 )  
    Total unrealized gain on derivatives and hedging activities, net of income taxes $1,026     $1,097     $1,212    
    Profitability Ratios                    
      June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024  
    For the quarter:                    
    NIM 4.66 % 4.55 % 4.41 % 4.29 % 4.24 %
    NIMTE* 4.72 % 4.61 % 4.47 % 4.35 % 4.30 %
    Efficiency ratio 64.68 % 63.54 % 66.96 % 66.11 % 68.78 %
    Return on average assets 1.48 % 1.76 % 1.43 % 1.22 % 1.31 %
    Return on average equity 16.37 % 19.70 % 16.32 % 13.69 % 14.84 %
      June 30, 2025   June 30, 2024  
    Year-to-date:        
    NIM 4.61 % 4.20 %
    NIMTE* 4.66 % 4.26 %
    Efficiency ratio 64.14 % 68.85 %
    Return on average assets 1.61 % 1.25 %
    Return on average equity 17.99 % 14.35 %


    *Non-GAAP Financial Measures
    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP.

    Net interest margin on a tax equivalent basis

    Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2025 and 2024. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin for the periods indicated.

      Three Months Ended
      June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024
    Net interest income $ 33,592     $ 31,297     $ 30,841     $ 28,842     $ 27,053  
    Divided by average interest-bearing assets   2,889,289       2,781,370       2,787,517       2,674,291       2,568,266  
    Net interest margin (“NIM”)2   4.66 %     4.55 %     4.41 %     4.29 %     4.24 %
                       
    Net interest income $ 33,592     $ 31,297     $ 30,841     $ 28,842     $ 27,053  
    Plus: reduction in tax expense related to                  
    tax-exempt interest income   409       379       379       385       378  
      $ 34,001     $ 31,676     $ 31,220     $ 29,227     $ 27,431  
    Divided by average interest-bearing assets   2,889,289       2,781,370       2,787,517       2,674,291       2,568,266  
    NIMTE2   4.72 %     4.61 %     4.47 %     4.35 %     4.30 %
      Year-to-date
      June 30, 2025   June 30, 2024
    Net interest income $ 64,889     $ 53,500  
    Divided by average interest-bearing assets   2,835,627       2,563,412  
    Net interest margin (“NIM”)3   4.61 %     4.20 %
           
    Net interest income $ 64,889     $ 53,500  
    Plus: reduction in tax expense related to      
    tax-exempt interest income   788       757  
      $ 65,677     $ 54,257  
    Divided by average interest-bearing assets   2,835,627       2,563,412  
    NIMTE3   4.66 %     4.26 %

    2Calculated using actual days in the quarter divided by 365 for the quarters ended in 2025 and 366 for the quarters ended in 2024, respectively.

    3Calculated using actual days in the year divided by 365 for year-to-date period in 2025 and 366 for year-to-date period in 2024, respectively.

    *Non-GAAP Financial Measures
    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Tangible Book Value Per Share

    Tangible book value per share is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share for the periods indicated.

      June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024
                       
    Total shareholders’ equity $ 290,219   $ 279,756   $ 267,116   $ 260,050   $ 247,200
    Divided by shares outstanding   5,522     5,521     5,518     5,502     5,502
    Book value per share $ 52.55   $ 50.68   $ 48.41   $ 47.26   $ 44.93
      June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024
                       
    Total shareholders’ equity $ 290,219   $ 279,756   $ 267,116   $ 260,050   $ 247,200
    Less: goodwill and intangible assets   50,824     50,824     50,968     15,967     15,967
      $ 239,395   $ 228,932   $ 216,148   $ 244,083   $ 231,233
    Divided by shares outstanding   5,522     5,521     5,518     5,502     5,502
    Tangible book value per share $ 43.35   $ 41.47   $ 39.17   $ 44.36   $ 42.03


    Tangible Common Equity to Tangible Assets

    Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets for the periods indicated.

    Northrim BanCorp, Inc. June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024
                       
    Total shareholders’ equity $ 290,219     $ 279,756     $ 267,116     $ 260,050     $ 247,200  
    Total assets   3,243,760       3,140,960       3,041,869       2,963,392       2,821,668  
    Total shareholders’ equity to total assets   8.95 %     8.91 %     8.78 %     8.78 %     8.76 %
    Northrim BanCorp, Inc. June 30, 2025   March 31, 2025   December 31,
    2024    		   September 30,
    2024    		   June 30, 2024
    Total shareholders’ equity $ 290,219     $ 279,756     $ 267,116     $ 260,050     $ 247,200  
    Less: goodwill and other intangible assets, net   50,824       50,824       50,968       15,967       15,967  
    Tangible common shareholders’ equity $ 239,395     $ 228,932     $ 216,148     $ 244,083     $ 231,233  
                       
    Total assets $ 3,243,760     $ 3,140,960     $ 3,041,869     $ 2,963,392     $ 2,821,668  
    Less: goodwill and other intangible assets, net   50,824       50,824       50,968       15,967       15,967  
    Tangible assets $ 3,192,936     $ 3,090,136     $ 2,990,901     $ 2,947,425     $ 2,805,701  
    Tangible common equity ratio   7.50 %     7.41 %     7.23 %     8.28 %     8.24 %

    Note Transmitted on GlobeNewswire on July 23, 2025, at 12:15 pm Alaska Standard Time.

    The MIL Network –

  • MIL-OSI USA: Rep. Andrea Salinas Leads Colleagues in Letter Opposing Trump Administration’s Attacks on the Forest Service

    Source: US Representative Andrea Salinas (OR-06)

    Washington, D.C. – Today, U.S. Representative Andrea Salinas (OR-06), joined by ten of her colleagues on the House Agriculture Committee, sent a letter to President Trump highlighting the harm his administration has done to the U.S. Forest Service.

    The letter demonstrates that the Trump administration’s actions – which include firing thousands of fire-qualified personnel, slashing funding, and moving forward an ill-conceived reorganization plan – will undermine wildfire preparedness and response across the country. The letter calls on President Trump to reverse course to undo the damage his administration has already caused.

    Click here or see below for the full letter:

    Dear President Trump,

     As we move deeper into wildfire season, we write to express our grave concern regarding your administration’s sustained attacks on the U.S. Forest Service (USFS). Widespread staff reductions, irresponsible budget proposals, and harmful organizational changes undermine the agency’s ability to effectively manage public lands, mitigate the risk of extreme wildfire, and protect the safety of communities across the country. 

    In early 2025, USFS undertook large-scale staffing reductions. More than 3,400 probationary employees were terminated, and thousands more departed under early retirement and separation incentives. The agency lost qualified wildfire response staff, as well as personnel specializing in fuels and forest management. These staff also conducted essential forest restoration work in the wake of wildfires to help critical ecosystems recover quickly and effectively. The loss of this expertise directly impairs the agency’s ability to reduce wildfire risk and respond effectively when fires occur moving forward. Despite what DOGE may claim, these employees were not part of some imagined bureaucratic fraud, they were dedicated public servants working to protect our public lands and our communities.

    In recent months your administration has advanced plans to shift many wildland fire responsibilities away from USFS and into a new entity housed within the Department of the Interior. This proposal has raised serious concerns among experts in fire response and forest management who warn it would create unnecessary disruption, fragment coordination, and delay urgently needed fuels reduction treatments during a time of escalating wildfire threats. For instance, the National Association of Forest Service Retirees has raised concerns that such an entity would take billions of dollars and many years to establish, even if done in an effective manner that preserves federal firefighting capabilities and minimizes chaos. There is also concern that such a new entity would ignore the critical role rank-and-file USFS workers play in fire preparedness and response and the inherent connection between wildfire and ongoing forest health and management. Moreover, as we move away from having a definable fire season and towards year-round risk of severe fire behavior, it is hard to imagine reorganizing our nation’s federal wildland firefighting responsibilities without creating unnecessary confusion and stress while attempting to protect vulnerable communities.

    Unfortunately, based on your administration’s track record, these concerns are well founded. From the chaotic mass firings of USFS personnel and the disruption caused by DOGE’s unfounded allegations of “waste, fraud, and abuse,” to the implementation of ill-conceived funding freezes and issuance of repetitive and vague Executive Orders, your Administration has repeatedly demonstrated an inability to execute complex plans efficiently or in good faith. It should come as no surprise, then, that your budget request included no funding to assist with any reorganization effort – nor did it request funds to replace the loss of personnel critical to the USFS’s wildfire preparedness and response capabilities.

    We would be remiss not to also mention our concern with the USFS budget proposal for Fiscal Year 2026. Slashing support for state, tribal, and private forestry programs that provide technical and financial assistance to landowners and resource managers to help sustain the nation’s forests and grasslands, protect communities from wildland fire, and restore forest ecosystems is downright dangerous. For example, eliminating funding for the Forest Service’s Collaborative Forest Landscape Restoration program, one of the agency’s most popular and effective programs, will actively hinder our ability to reduce the risk of catastrophic wildfire and support economic revitalization in rural communities.

    The USFS is also currently withholding funding from critical state, tribal, and private forestry programs, which are essential to preparing for and responding to wildfire on non-federal lands. We are deeply concerned by reports that program funding is being redirected to pay for the unauthorized and ill-conceived Deferred Resignation Program (DRP). Reallocating funding from its congressionally authorized purpose in order to pay employees to not work is an absurd, illegal, and irresponsible use of taxpayer dollars. If additional resources are desired to pursue DRP or other reorganization efforts, USFS should formally request and justify the need for these resources.

    Moving forward, we urge you to direct USFS to rectify the harm it has already done to wildfire preparedness and response. That means re-hiring or replacing terminated employees and resuming the distribution of state, tribal, and private forestry grants. It also means dropping ill-conceived reorganization plans until meaningful planning has occurred and required funds have been secured.

    The wildfire crisis is not going away. We should work together to reverse the dangerous course USFS is on, and bolster our wildfire preparedness and response capacity through collaborative, interagency efforts with a proven track record of success. Failure to do so will have catastrophic consequences.

    ###

    MIL OSI USA News –

  • 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 –