NewzIntel.com

Category: Natural Disasters

  • MIL-OSI Security: Grand Jury Returns Four Indictments

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

    MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments yesterday. You are advised that a charge is merely an accusation, and a person named as defendant in an indictment is presumed innocent unless and until proven guilty.

    WAUSAU MAN CHARGED WITH POSSESSING FENTANYL AND METHAMPHETAMINE FOR DISTRIBUTION

    Christopher Harter, 49, Wausau, Wisconsin is charged in a two-count indictment with possessing fentanyl and methamphetamine for distribution. The indictment alleges that on March 7, 2025, Harter possessed 40 grams or more of fentanyl and 50 grams or more of methamphetamine with intent to distribute.

    If convicted, Harter faces a mandatory minimum of 5 years in prison and a maximum penalty of 40 years in prison on each count.

    The charge against him is the result of an investigation conducted by Federal Bureau of Investigation’s Central Wisconsin Narcotics Task Force comprised of agents from the FBI, Wisconsin State Patrol, Wisconsin Department of Criminal Investigation, Lincoln County Sheriff’s Office, Marathon County Sheriff’s Office, Portage County Sheriff’s Office, Mountain Bay Police Department, Wausau Police Department and Wisconsin National Guard Counter Drug Program.  Assistant U.S. Attorney Taylor L. Kraus is handling the case.

    JACKSON COUNTY MAN CHARGED WITH POSSESSING METHAMPHETAMINE FOR DISTRIBUTION

    Elvin Amundson, 39, Sparta, Wisconsin is charged with possessing more than 500 grams of methamphetamine for distribution.  The indictment alleges that he possessed the methamphetamine on April 14, 2021.

    If convicted, Amundson faces a mandatory minimum of 10 years in prison and a maximum penalty of life.

    The charge against Amundson is the result of an investigation conducted by the Federal Bureau of Investigation and the Jackson County Sheriff’s Office.  Assistant U.S. Attorney Steven P. Anderson is handling the case.

    ROTHSCHILD MAN CHARGED WITH ILLEGALLY POSSESSING A FIREARM

    Edward L. Jackson III, 28, Rothschild, Wisconsin, is charged with possessing a firearm as a felon. The indictment alleges that on May 20, 2024, Jackson possessed a loaded Sig Sauer pistol. If convicted, Jackson faces a maximum penalty of fifteen years in prison.

    The charge against him is the result of an investigation conducted by the Wausau Police Department, the Wausau Police Department’s Community Resource Unit, and the Federal Bureau of Investigation’s Central Wisconsin Narcotics Task Force (CWNTF), with assistance from the ATF Madison Crime Gun Task Force and the Marathon County District Attorney’s Office. The CWNTF is comprised of agents from the FBI, Wisconsin State Patrol, Wisconsin Department of Criminal Investigation, Lincoln County Sheriff’s Office, Marathon County Sheriff’s Office, Portage County Sheriff’s Office, Mountain Bay Metro Police Department, Wausau Police Department and Wisconsin National Guard Counter Drug Program. The ATF Madison Crime Gun Task Force consists of federal agents from ATF and Task Force Officers (TFOs) from state and local agencies throughout the Western District of Wisconsin. Assistant U.S. Attorney Julie Pfluger is handling the case.

    MEXICAN CITIZEN FOUND IN EAU CLAIRE CHARGED WITH ILLEGALLY REENTERING UNITED STATES

    Mario Govea-Monarca, 23, a citizen of Mexico found in Eau Claire, Wisconsin, is charged with reentering the United States after having been previously removed. The indictment alleges that on November 29, 2023, Govea-Monarca was found in the Western District of Wisconsin after having previously been removed and without having obtained the express consent of the United States Attorney General or the Secretary of Homeland Security to reapply for admission to the United States.

    If convicted, Govea-Monarca faces a maximum penalty of two years in prison.

    The charge against him is the result of an investigation conducted by the Department of Homeland Security, Immigration and Customs Enforcement (ICE). Assistant U.S. Attorney Jennifer Remington is handling the case.

    All cases involving illegal immigration and firearms are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (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).

    MIL Security OSI –

  • MIL-OSI USA: Congressman Don Davis Remarks at Press Conference on First 100 Days of the 119th Congress

    Source: US Congressman Don Davis (NC-01)

    ROCKY MOUNT, N.C. — Congressman Don Davis delivered the following remarks at his press conference on the first 100 days of the 119th Congress:

    Hi, everybody! It is always great to be back home, in eastern North Carolina. I have worked to share the stories, concerns, and issues impacting eastern North Carolina families. Our district now spans 22 incredible counties, from the coastlines of Currituck and Camden counties through the farmland of Lenoir and Wayne counties to the heart of Oxford and everywhere between. My vision for NC-01 is: “We must meet our constituents where they are, ensuring they are seen and heard in Washington, D.C., to make life better for all families and provide hope and assurance they are not forgotten.” We work to achieve this daily.

    We’ve opened three new offices: 1. Rocky Mount, 2. Goldsboro, and 3. Elizabeth City. We held listening sessions in Camden, Currituck, Granville, Wayne, and Lenoir counties. Due to an increased interest in town halls, we hosted a telephone town hall with nearly 13,000 participants. So far this year, we helped close more than 240 constituent cases and returned over $821,000 to eastern North Carolina families, cutting through bureaucracy to return money directly to our neighbors. Our District Outreach Team has made over 156 visits to meet with constituents across the district, showing up, listening, attending events and meetings, and responding to issues. 

    During the 119th Congress, 11,750 constituents have reached out to the office. In comparison, during the 118th Congress, 8,745 constituents reached out to the office through April 14. The top three campaigns during the 119th Congress have been: 1) Protect Social Security, 2) Oppose the Department of Government Efficiency (DOGE) and Elon Musk, and 3) Support the Ensuring Pathways to Innovative Cures (EPIC) Act.

    I have introduced 14 bills in the 119th Congress, including:

    1. H.R. 1060, Modern Authentication of Pharmaceuticals (MAP) Act of 2025: The first bill we introduced was the Modern Authentication of Pharmaceuticals Act, legislation that seeks to secure the United States drug supply chain and close vulnerabilities that allow counterfeit controlled substances, including lethal fentanyl, into our communities;
    2. H.R. 1244, Reducing Drug Prices for Seniors Act, legislation that reduces out-of-pocket expenses for Medicare patients by calculating the coinsurance cost at the pharmacy counter based on the drug’s net, or actual price, rather than its list price;
    3. H.R. 1298, Veterans Jobs Opportunity Act, legislation that sets a new business-related tax credit for the start-up expenses of a veteran-owned small business in an underserved community;
    4. H.R. 1363, Honor and Remember Flag Recognition Act of 2025, legislation that designates the Honor and Remember Flag, created by Honor and Remember, Inc., as a national symbol to honor service members who died in the line of duty;
    5. H.R. 1377, Sarah Keys Evans Congressional Gold Medal Act in recognition of her achievements relating to the desegregation of passengers on interstate buses in the 1950s. Before there was Rosa Parks, there was Sara Keys Evans;
    6. H.R. 1672, Maintaining New Investments in New Innovation (MINI) Act ensures lifesaving genetic treatments remain accessible;
    7. H.R. 1858, Flooding Prevention, Assessment, and Restoration Act would strengthen flood prevention measures and provide support for rural communities facing flood risks;
    8. H.R. 1985, Promoting Precision Agriculture Act, ensuring our growers have access to the cutting-edge precision agriculture technologies and broadband services necessary to do what they do best — feed, fuel, and clothe the American people;
    9.  H.R. 2043, Agricultural Commodities Price Enhancement Act, legislation that increases the reference price for seed cotton, peanuts, corn, soybeans, and wheat;
    10.  H.R. 2109, Cybersecurity for Rural Water Systems Act, ensures our water systems that rural communities and farmers rely on have the necessary protections to successfully guard against cyber-attacks;
    11.  H.R. 2541, Nuclear Medicine Clarification Act of 2025, legislation that would close a loophole that currently allows patients to be unintentionally exposed to high levels of radiation without reporting or disclosure. The legislation would improve care and ensure transparency for patients and simplify federal rules coming from the Nuclear Regulatory Commission (NRC);
    12.  H.R. 2542, Old Drugs, New Cures Act, legislation to improve access to innovative, affordable medication and tackle health disparities in rural and low-income communities across America;
    13. H.R. 2625, Veterans Employment Readiness Yield (VERY) Act, which updates outdated language. The VERY Act makes changes to let our disabled vets know that they are receiving the respect and dignity they have rightfully earned; and 
    14.  H.R. 2707, Protecting American Families and Servicemembers from Anthrax Act, ensuring the U.S. Department of Defense and Department of Health and Human Services develop a long-term stockpiling strategy that leverages the Strategic National Stockpile to enhance national preparedness.

    I am committed to: 

    1. Fighting for our farmers by advocating for a temporary pause on the Adverse Effective Wage Rate and pushing for a comprehensive Farm Bill that enhances commodity pricing. We also need continued support for agricultural assistance for farmers hurt by difficult times;
    2. Protecting Seymour Johnson Air Force Base. We are working to protect Seymour Johnson Air Force Base, including two visits and annual defense priorities focusing on F-15EX procurement, Child Development Center upgrades, maintenance dollars for F-15E aircraft, and $41 million in Combat Arms Training & Maintenance funds; 
    3. Building our local economy, by creating good-paying jobs in shipbuilding with Newport News Shipyard and the Global TransPark, a critical hub for jobs, logistics, and innovation, while addressing local government infrastructure needs.We are also working to address our Interstate, broadband, and housing needs;
    4. Enhancing our healthcare outcomes is vital. I support Martin County’s efforts to enhance its healthcare system and advocate for a new Health Sciences facility at Barton College by advocating for $10 million through Barton’s application to the Golden LEAF Foundation;
    5. On border security, I will continue supporting a secure border and meaningful immigration reform that respects our values. I have visited the ICE facility that services eastern North Carolina in Alamance County Detention Center and traveled as part of an Armed Services Committee CODEL to Naval Station Guantanamo Bay to gain firsthand insight into the role these facilities play in our border security strategy. Next week, I will travel to Lumpkin, Georgia to tour a regional ICE facility; 
    6. I will be filing key legislation that addresses federal recognition for the Haliwa Saponi Indian Tribe, support for the Southeast Crescent Regional Commission, and tax fairness for combat-injured Coast Guard veterans.

    Together, these efforts will contribute to a brighter future for our region. We’re not sitting on the sidelines. We are working hard every day on healthcare, agriculture, defense, and working families. 

    An early victory during the Trump Administration includes the decision by the Food and Drug Administration to formally withdraw and end the effort by the agency to consider a ban on menthol cigarettes and flavored cigars. As the Ranking Member of the Commodity Markets, Digital Assets, and Rural Development Subcommittee of the House Agriculture Committee, I am working on regulatory framework legislation for the crypto and digital assets industry that is a priority of the Administration.

    I also know that people are currently nervous about the state of the country and the world. 

    Specific concerns include: 1. Helene and agriculture assistance, 2. education funding reductions, and 3. tariffs.

    I voted in support of disaster assistance for Helene in the West and drought in the East. I am glad that economic assistance was included. But we are way short. We are a billion short for agricultural assistance alone.

    I visited North Lenoir High School in Lenoir County just this morning, one of the four public school districts in North Carolina that no longer has access to COVID-19-related funding that they had been promised because the U.S. Department of Education terminated their ability to liquidate those federal dollars.

    On Friday, I visited Halifax County Schools to discuss the same issue. 

    We are: 

    1. Sending a letter to the U.S. Department of Education Secretary Linda McMahon; 
    2. Seeking to schedule a meeting with the Secretary; 
    3. Reaching out to other North Carolina delegation members to consider a joint letter; and 
    4. Communicating our findings to the White House.

    For tariffs, eastern North Carolina cannot afford to be collateral damage in a trade war. We need tough and targeted trade policies, but our policies must also protect jobs, lower input costs, and keep our communities strong.

    Previously, I voted in support of the SAVE ACT. After speaking with North Carolina State Board of Election officials, I voted against it based on the concern that the bill cannot be implemented as drafted. While I support the intent of the SAVE Act that makes crystal clear only U.S. citizens should vote in elections, N.C. election officials have shared serious concerns about its implementation. The limited time for modernizing our information systems, uncertain taxpayer costs, and the need for clear standards to verify U.S. citizenship pose risks to administering federal elections. I remain committed to improving this bill and ensuring free and fair elections.

    We are meeting residents where they are. We read “Pete the Cat and His Magic Sunglasses” at St. Stephens Daycare. Federal funds for early childhood education remain important. I visited International Paper at Manson, spoke with quilters in Warrenton, and held a meeting with the Global TransPark. This morning, I traveled to N. Lenoir High School to look at their roof. 

    I plan to visit Pine Gates Renewables, Freedom Industries, and the Boys and Girls Club of the Tar River Region later today. Over the course of the next week, I will attend the 60th Annual Haliwa Saponi Blooming of the Dogwood Powwow, visit Airbus and Collins Aerospace, Barton College, Davita Kidney Care in Wilson, and Wilson Community College.

    I plan to meet with the Albemarle Area United Way, break ground at Elizabeth City State University for an aviation building, visit U.S. Coast Guard Elizabeth City, visit the Food Bank of Albemarle, and meet with the Perquimans County EMS director to discuss recovery efforts.

    As this is Holy Week, I wish everyone a wonderful Easter. Meanwhile, we will keep looking for opportunities to work with the Administration. Tax filing deadline was extended to May 1 for federal and state for all NC residents due to Helene. I encourage residents to file their taxes or an extension. We will keep advocating for our families, our farmers, our veterans, our students, and the future we believe in. May God bless eastern North Carolina, and our nation.

    MIL OSI USA News –

  • MIL-OSI USA: Murray, Sanders, Baldwin Blast Trump Admin’s Attacks on Head Start, Demand RFK Jr. Immediately Release Funding and Reverse Firings

    US Senate News:

    Source: United States Senator for Washington State Patty Murray

    42 lawmakers write to RFK Jr. demanding answers on Trump admin’s actions undermining Head Start as Trump reportedly plans to eliminate the program

    Washington, D.C. — Today, Senator Patty Murray (D-WA), Vice Chair of the Senate Appropriations Committee, Senator Bernie Sanders (I-VT), Ranking Member of the Senate Committee on Health, Education, Labor, and Pensions (HELP), and Senator Tammy Baldwin (D-WI), Ranking Member of the Senate Appropriations Subcommittee on Labor, Health and Human Services, Education, and Related Agencies, led a letter to Secretary Robert F. Kennedy Jr. calling out the Trump administration’s direct attacks on Head Start, reminding him of his legal obligation to administer the program, and demanding the Department of Health and Human Services immediately release Head Start funding and reverse the mass firing of Head Start staff and gutting of the offices that help ensure high-quality services are available for thousands of children and families across the country.

    “We write to express our strong opposition to the actions you have taken to directly attack and undermine the federal Head Start program. Since day one, this Administration has taken unacceptable actions to withhold and delay funding, fire Head Start staff, and gut high-quality services for children. Already this year, this Administration has withheld almost $1 billion in federal grant funding from Head Start programs, a 37 percent decrease compared to the amount of funding awarded during the same period last year,” write the lawmakers. “It is abundantly clear that these actions are part of a broader effort to ultimately eliminate the program altogether, as the Administration reportedly plans to do in its fiscal year 2026 budget proposal.”

    The lawmakers detail how the program plays an instrumental role in supporting kids and families across the country, writing: “Head Start provides early childhood education and comprehensive health and social services to nearly 800,000 young children every year in communities across this country, and employs about 250,000 dedicated staff. Head Start is a critical source of child care for working families, particularly in rural and Tribal communities, where Head Start programs are often the only option for high-quality child care services. Head Start programs ensure children receive appropriate health and dental care, nutrition support, and referrals to other critical services for parents, such as job training, adult education, nutrition services, and housing support.”

    “You even acknowledged the value of Head Start following a recent visit to a Virginia Head Start center,” the lawmakers write, contrasting that statement of support with the Trump administration’s actions. “However, as a result of your actions to withhold and delay funding and undermine the administration of this vital program, Head Start centers are in serious jeopardy and have already had their day to day operations impacted. Programs are increasingly worried that they will not be able to make payroll, pay rent, and remain open to serve the hundreds of thousands of children and families who depend on their services in communities across the nation.”

    “Since the very start of this Administration, Head Start programs have been under attack,” the lawmakers write, detailing office closures and funds that were frozen for Head Start grants across the country. “At one point, the National Head Start Association reported 37 programs serving nearly 15,000 children across the country could not access their federal funding. Head Start programs operate with thin margins and on short-term budgets from HHS, and without any communication from the Administration about the status of funding, programs were forced to temporarily close or to lay off staff.”

    The lawmakers underscore how the gutting of Head Start offices and the firing of staff who keep the federal program running puts the entire program in jeopardy: “On April 1st, you abruptly closed five of the ten regional offices that help local grantees administer Head Start programs in 22 states . This left hundreds of programs without dedicated points of contact to address mission critical issues like approving grant renewals and modifications, investigating child health and safety incidents, and providing training and technical assistance to ensure high-quality services for children. While some grantees were assigned a new program specialist, we understand many have not been receiving responses to their inquiries. This is on top of the estimated 97 Office of Head Start central office staff that were terminated due to their probationary status and the recent reduction in force. You promised ‘radical transparency’ as Secretary, yet it is unclear how these actions will improve Head Start programs, and you and your staff refuse to respond to basic inquiries and requests for information.”

    Importantly, they note that without funding that has so far not gone out the door, many more programs could be forced to close.

    “Head Start grantees are still waiting on payments and grant renewals from the Office of Head Start, including programs whose grants end on April 30th, 2025. These notices should have gone out by now, yet we are concerned to hear programs report they have received little to no correspondence regarding their grant renewals,” the lawmakers continue to detail how local Head Start programs are receiving no notice for the path forward for grant funding. “Additionally, because we started fiscal year 2025 under a short-term continuing resolution, as is usual, some grantees have only received partial funding for the first few months of the year. But with a full year funding bill in place, these grantees should have received full funding by now, yet some are reporting that they have not received the full amount of their grants and will run out of funds this month or next. On Wednesday, April 16th, the delays in Head Start funding led to the closure of Head Start centers serving more than 400 children in Sunnyside, Washington.”

    “The Administration has a legal and moral obligation to disburse Head Start funds to programs and to uphold the program’s promise to provide high-quality early education services to low income children and families across this country,” the lawmakers write. “There is no justifiable reason for the delay in funding we have seen over the last two months, and you have refused to offer any kind of explanation.”

    The lawmakers conclude by warning that eliminating the program would be devastating, demanding answers on the administration’s actions, and demanding the reversal of them: “[W]e urge you to immediately reinstate fired staff across all Offices of Head Start, and cease all actions to delay the awarding and disbursement of funding to Head Start programs across this country.”

    In addition to Senators Murray, Sanders, and Baldwin, the letter was signed by 39 colleagues, including Jack Reed (D-RI), Mazie K. Hirono (D-HI), Andy Kim (D-NJ), Ben Ray Lujan (D-NM), Charles E. Schumer (D-NY), Lisa Blunt Rochester (D-DE), Peter Welch (D-VT), Gary Peters (D-MI), Michael F. Bennet (D-CO), Richard Blumenthal (D-CT), Jeanne Shaheen (D-NH), Ruben Gallego (D-AZ), Elizabeth Warren (D-MA), Jacky Rosen (D-NV), Tina Smith (D-MN), John Fetterman (D-PA), Tammy Duckworth (D-IL), Christopher A. Coons (D-DE), Christopher S. Murphy (D-CT), Jeffrey A. Merkley (D-OR), Mark Kelly (D-AZ), Kirsten Gillibrand (D-NY), Sheldon Whitehouse (D-RI), Dick Durbin (D-IL), Catherine Cortez Masto (D-NV), Tim Kaine (D-MN), Alex Padilla (D-CA), Chris Van Hollen (D-MD), Elissa Slotkin (D-MI), Ron Wyden (D-OR), Raphael Warnock (D-GA), Cory Booker (D-NJ), Amy Klobuchar (D-MN), Edward Markey (D-MA), Angus King (I-ME), Brian Schatz (D-HI), Martin Heinrich (D-NM), Angela Alsobrooks (D-MD), and Mark R. Warner (D-VA).

    Full text of the letter is available HERE and below:

    Dear Secretary Kennedy:

    We write to express our strong opposition to the actions you have taken to directly attack and undermine the federal Head Start program. Since day one, this Administration has taken unacceptable actions to withhold and delay funding, fire Head Start staff, and gut high-quality services for children. Already this year, this Administration has withheld almost $1 billion in federal grant funding from Head Start programs, a 37 percent decrease compared to the amount of funding awarded during the same period last year. It is abundantly clear that these actions are part of a broader effort to ultimately eliminate the program altogether, as the Administration reportedly plans to do in its fiscal year 2026 budget proposal.

    Head Start provides early childhood education and comprehensive health and social services to nearly 800,000 young children every year in communities across this country, and employs about 250,000 dedicated staff. Head Start is a critical source of child care for working families, particularly in rural and Tribal communities, where Head Start programs are often the only option for high-quality child care services. Head Start programs ensure children receive appropriate health and dental care, nutrition support, and referrals to other critical services for parents, such as job training, adult education, nutrition services, and housing support.

    You even acknowledged the value of Head Start following a recent visit to a Virginia Head Start center, where you said, “I had a very inspiring tour. I saw a devoted staff and a lot of happy children. They are getting the kind of education and socialization they need, and they are also getting a couple of meals a day.”

    However, as a result of your actions to withhold and delay funding and undermine the administration of this vital program, Head Start centers are in serious jeopardy and have already had their day to day operations impacted. Programs are increasingly worried that they will not be able to make payroll, pay rent, and remain open to serve the hundreds of thousands of children and families who depend on their services in communities across the nation.

    Since the very start of this Administration, Head Start programs have been under attack. On January 27th, 2025, the Office of Management and Budget issued a memo (M-25-13) that suddenly froze the disbursement of grant funding for federal programs and services government-wide, including Head Start. Despite the Administration’s clarification that Head Start programs would not be the target of the funding freeze, many Head Start programs across the country were unable to draw down their grant funds through the Payment Management System (PMS) for weeks. At one point, the National Head Start Association reported 37 programs serving nearly 15,000 children across the country could not access their federal funding. Head Start programs operate with thin margins and on short-term budgets from HHS, and without any communication from the Administration about the status of funding, programs were forced to temporarily close or to lay off staff. In Wisconsin, the National Centers for Learning Excellence, which serves more than 200 children and their families, shut down for a week and laid off staff due to the funding freeze.

    On April 1st, you abruptly closed five of the ten regional offices that help local grantees administer Head Start programs in 22 states. This left hundreds of programs without dedicated points of contact to address mission critical issues like approving grant renewals and modifications, investigating child health and safety incidents, and providing training and technical assistance to ensure high-quality services for children. While some grantees were assigned a new program specialist, we understand many have not been receiving responses to their inquiries. This is on top of the estimated 97 Office of Head Start central office staff that were terminated due to their probationary status and the recent reduction in force. You promised “radical transparency” as Secretary, yet it is unclear how these actions will improve Head Start programs, and you and your staff refuse to respond to basic inquiries and requests for information.

    On March 14th, 2025, the Office of Head Start (OHS) notified all Head Start programs that “the use of federal funding for any training and technical assistance or other program expenditures that promote or take part in diversity, equity, and inclusion (DEI) initiatives” will not be approved and that any questions should be directed to regional offices. Programs have not received any guidance for what would be considered “DEI” but this policy is potentially in direct conflict with statutory and regulatory program requirements, such as providing culturally and linguistically appropriate instructional services for English learners. Many programs cannot direct questions to regional staff, as half of regional offices were abruptly closed, and as unprecedented actions are being taken to delay and withhold funding, Head Start programs have been intentionally left with little to no guidance.

    Head Start programs are now arbitrarily required to provide justifications for each draw down of funds that is necessary to operate their programs, despite already receiving a federal grant award for these purposes. As of April 14th, Head Start programs have reportedly received correspondence from an email address “defendthespend@hhs.gov” requiring programs to submit a “specific description of why the funds are necessary and why they are aligned to the award” before programs can have funding disbursed. It has been reported that political appointees must sign off on every draw down of funds. This creates an illusion of improving oversight but only serves to add unnecessary red tape by requiring the manual sign off on hundreds of thousands of individual actions annually across the Department based on two to three sentence justifications. Already some grantees have reported delays in receiving funds, and have reported that furloughs or closures are imminent if funds are not released. For an administration that purports to value local autonomy and efficiency in federally funded programs, your actions have achieved the exact opposite.

    Finally, Head Start grantees are still waiting on payments and grant renewals from the Office of Head Start, including programs whose grants end on April 30th, 2025. These notices should have gone out by now, yet we are concerned to hear programs report they have received little to no correspondence regarding their grant renewals. Additionally, because we started fiscal year 2025 under a short-term continuing resolution, as is usual, some grantees have only received partial funding for the first few months of the year. But with a full year funding bill in place, these grantees should have received full funding by now, yet some are reporting that they have not received the full amount of their grants and will run out of funds this month or next. On Wednesday, April 16th, the delays in Head Start funding led to the closure of Head Start centers serving more than 400 children in Sunnyside, Washington.

    The Administration has a legal and moral obligation to disburse Head Start funds to programs and to uphold the program’s promise to provide high-quality early education services to low income children and families across this country. The fiscal year 2025 appropriations act provided $12.3 billion for Head Start, the same as the fiscal year 2024 level. The Head Start Act includes an explicit formula for how appropriated funds should be allocated. There is no justifiable reason for the delay in funding we have seen over the last two months, and you have refused to offer any kind of explanation. However, this week leaked fiscal year 2026 budget documents indicated the Office of Management and Budget was directing the Department, consistent with the Administration’s proposal to eliminate Head Start in fiscal year 2026, to “ensure to the extent allowable FY2025 funds are available to close out the program.” If this explains any of the delay in awarding fiscal year 2025 funding, we want to be clear, no funds were provided in fiscal year 2025 to “close out the program,” and it would be wholly unacceptable and likely illegal if the Department tries to carry out this directive.

    Finally, the leaked budget documents provided a justification, albeit brief, for eliminating Head Start in fiscal year 2026 that makes this Administration’s priorities clear and puts the Department’s actions over the last several months in context. The Administration argues that eliminating Head Start, “is consistent with the Administration’s goals of returning education to the States and increasing parental choice.” It is shocking to see an argument that eliminating a program that provides comprehensive early childhood care and education to 800,000 children and their families would increase parental choice. It is particularly concerning to see that argument in the context of the significant delay in awarding fiscal year 2025 appropriated funds and what that indicates about the intent behind the Department’s actions. We believe it is obvious that eliminating Head Start would be detrimental to hundreds of thousands of children and families. Similarly, we believe it is obvious that delaying funding like we have seen over the last two months, forcing Head Start programs to close, and leaving families to scramble to find quality, affordable alternatives puts the education and well-being of some of the most vulnerable young children in America at risk. In our view, that is unacceptable.

    Therefore, we urge you to immediately reinstate fired staff across all Offices of Head Start, and cease all actions to delay the awarding and disbursement of funding to Head Start programs across this country.

    Please provide us with a written response to the questions below no later than 10 days from receipt:

    1. Will you reinstate the staff who administer Head Start programs and reopen the closed regional offices responsible for overseeing Head Start programs in 22 states?

    a) When is HHS going to share information on the reorganization plan for the consolidation of the regional offices?

    b) Please provide the contact information for each program specialist designated to the 22 states who lost their regional office.

    c) Who is responsible for ensuring there are no delays or lapses in funding, nor any disruptions to Head Start program operations now that these states do not have a regional office?

    2. How many employees at the Offices of Head Start have been terminated, including the five regional offices and the central office?

    a) Which officials at HHS were involved in the staffing reduction decisions for OHS and what planning, if any, was undertaken prior to these reductions? Please describe the events that unfolded and name each office that was involved in the decision. Further, please name the official(s) who approved the staffing reductions.

    3. Can you confirm that the Administration will distribute all Head Start funds appropriated by Congress to Head Start programs in FY 25, as required by the Head Start Act?

    4. Please provide a list of all grantees with 5-year Head Start grant renewals that start between now and the end of the fiscal year: May 1st, June 1st, July 1st, August 1st, and September 1st.

    a) Will any funding be delayed for grantees that are due to receive their annual funding on May 1st or beyond?

    5. Why are funding awards delayed for grantees that received partial awards during the first continuing resolution for FY25?

    a) When can HHS guarantee that all funds will be awarded for partially funded Head Start programs?

    6. What is the “Tier 2” department for review that is delaying drawn down for Head Start programs in the Payment Management System?

    a) When should programs expect to receive their funds?

    b) Please provide all communication that went to Head Start grantees on the new review process.

    7. What guidance and clarifications have been provided to Head Start grantees on DEI expenditures?

    a) How is HHS evaluating Head Start programs’ expenditures and grant awards for DEI?

    b) What justifications are being used to prohibit DEI?

    MIL OSI USA News –

  • MIL-OSI Security: Arrest in Chinatown Results in Illegal Firearm Charge

    Source: Office of United States Attorneys

    Defendant Charged as Part of Make D.C. Safe Again Initiative

    WASHINGTON – Vankese Russell, 26, a resident of the District of Columbia, has been indicted on a federal firearms charge as part of the “Make D.C. Safe Again” initiative. The indictment was announced by U.S. Attorney Edward R. Martin Jr., Special Agent in Charge Anthony Spotswood of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Pamela Smith of the Metropolitan Police Department (MPD).

    Make D.C. Safe Again is a public safety initiative led by U.S. Attorney Martin that is surging resources to reduce violent crime in the District of Columbia. This initiative was created to address gun violence in the District, prioritize federal firearms violations, pursue tougher penalties for offenders, and seek detention for federal firearms violators.

    Russell is charged in an indictment in federal court with unlawful possession of a firearm by a prohibited person.

    According to court documents, MPD officers from the First District Crime Suppression Team arrested a man in the Chinatown area on Jan. 28, 2025, following the public consumption of marijuana and subsequent discovery of an illegal firearm.

    Court documents say that while on foot patrol near 7th and H Streets NW, officers observed smoke and detected the odor of burning marijuana behind a Metrobus stop. The individual, later identified as Vankese Russell, attempted to extinguish and discard a hand-rolled cigarette upon noticing the officers.

    During a search incident to arrest, officers recovered a loaded .40 caliber Smith & Wesson handgun from Russell’s waistband. Russell was convicted of a felony in 2018, and thus, he was not permitted to possess the firearm.

    This case is being investigated by the ATF Washington Field Office and the Metropolitan Police Department. Assistant U.S. Attorney Kondi Kleinman is prosecuting this case.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.ocent until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI: Parker Increases Quarterly Cash Dividend 10% to $1.80 per Share

    Source: GlobeNewswire (MIL-OSI)

    CLEVELAND, April 24, 2025 (GLOBE NEWSWIRE) — Parker Hannifin Corporation (NYSE: PH), the global leader in motion and control technologies, today announced that its Board of Directors has declared a quarterly cash dividend of $1.80 per share of common stock to shareholders of record as of May 9, 2025. The dividend is payable June 6, 2025. The dividend represents a 10% increase over the previous quarterly cash dividend of $1.63 per common share and will be the 300th consecutive quarterly dividend paid by the company.

    “This dividend increase reflects the Board’s confidence in our financial position and continued ability to generate strong cash flows through the business cycle,” said Jenny Parmentier, Chairman and Chief Executive Officer. “Our performance and strong balance sheet give us the flexibility to strategically deploy capital to create shareholder value, including increasing our annual per share dividend record to 69 fiscal years.”

    Parker Hannifin is a Fortune 250 global leader in motion and control technologies. For more than a century the company has been enabling engineering breakthroughs that lead to a better tomorrow. Parker has increased its annual dividend per share paid to shareholders for 69 consecutive fiscal years, among the top five longest-running dividend-increase records in the S&P 500 index. Learn more at www.parker.com or @parkerhannifin.

    Forward-Looking Statements

    Forward-looking statements contained in this and other written and oral reports are made based on known events and circumstances at the time of release, and as such, are subject in the future to unforeseen uncertainties and risks. Often but not always, these statements may be identified from the use of forward-looking terminology such as “anticipates,” “believes,” “may,” “should,” “could,” “expects,” “targets,” “is likely,” “will,” or the negative of these terms and similar expressions, and may also include statements regarding future performance, orders, earnings projections, events or developments. Parker cautions readers not to place undue reliance on these statements. It is possible that the future performance may differ materially from expectations, including those based on past performance.

    Among other factors that may affect future performance are: changes in business relationships with and orders by or from major customers, suppliers or distributors, including delays or cancellations in shipments; disputes regarding contract terms, changes in contract costs and revenue estimates for new development programs; changes in product mix; ability to identify acceptable strategic acquisition targets; uncertainties surrounding timing, successful completion or integration of acquisitions and similar transactions; ability to successfully divest businesses planned for divestiture and realize the anticipated benefits of such divestitures; the determination and ability to successfully undertake business realignment activities and the expected costs, including cost savings, thereof; ability to implement successfully business and operating initiatives, including the timing, price and execution of share repurchases and other capital initiatives; availability, cost increases of or other limitations on our access to raw materials, component products and/or commodities if associated costs cannot be recovered in product pricing; ability to manage costs related to insurance and employee retirement and health care benefits; legal and regulatory developments and other government actions, including related to environmental protection, and associated compliance costs; supply chain and labor disruptions, including as a result of tariffs and labor shortages; threats associated with international conflicts and cybersecurity risks and risks associated with protecting our intellectual property; uncertainties surrounding the ultimate resolution of outstanding legal proceedings, including the outcome of any appeals; effects on market conditions, including sales and pricing, resulting from global reactions to U.S. trade policies; manufacturing activity, air travel trends, currency exchange rates, difficulties entering new markets and economic conditions such as inflation, deflation, interest rates and credit availability; inability to obtain, or meet conditions imposed for, required governmental and regulatory approvals; changes in the tax laws in the United States and foreign jurisdictions and judicial or regulatory interpretations thereof; and large scale disasters, such as floods, earthquakes, hurricanes, industrial accidents and pandemics. Readers should also consider forward-looking statements in light of risk factors discussed in Parker’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024 and other periodic filings made with the SEC.

    ###

    The MIL Network –

  • MIL-OSI USA: SPC Tornado Watch 167

    Source: US National Oceanic and Atmospheric Administration

    Note:  The expiration time in the watch graphic is amended if the watch is replaced, cancelled or extended.Note: Click for Watch Status Reports.
    SEL7

    URGENT – IMMEDIATE BROADCAST REQUESTED
    Tornado Watch Number 167
    NWS Storm Prediction Center Norman OK
    335 PM CDT Thu Apr 24 2025

    The NWS Storm Prediction Center has issued a

    * Tornado Watch for portions of
    Oklahoma Panhandle
    Texas Panhandle and South Plains

    * Effective this Thursday afternoon and evening from 335 PM until
    1100 PM CDT.

    * Primary threats include…
    A couple tornadoes possible
    Scattered large hail and isolated very large hail events to 4
    inches in diameter likely
    Isolated damaging wind gusts to 70 mph possible

    SUMMARY…Widely scattered thunderstorms are forecast to rapidly
    develop this afternoon into the early evening. Environmental shear
    and buoyancy combinations strongly favor intense, discrete
    supercells. Large to giant hail will be probable with any
    supercell. The tornado risk will likely focus for a few hours
    during the early evening near a residual outflow boundary draped
    over parts of the Watch area.

    The tornado watch area is approximately along and 60 statute miles
    east and west of a line from 30 miles northeast of Guymon OK to 60
    miles southeast of Lubbock TX. For a complete depiction of the watch
    see the associated watch outline update (WOUS64 KWNS WOU7).

    PRECAUTIONARY/PREPAREDNESS ACTIONS…

    REMEMBER…A Tornado Watch means conditions are favorable for
    tornadoes and severe thunderstorms in and close to the watch
    area. Persons in these areas should be on the lookout for
    threatening weather conditions and listen for later statements
    and possible warnings.

    &&

    OTHER WATCH INFORMATION…CONTINUE…WW 166…

    AVIATION…Tornadoes and a few severe thunderstorms with hail
    surface and aloft to 4 inches. Extreme turbulence and surface wind
    gusts to 60 knots. A few cumulonimbi with maximum tops to 550. Mean
    storm motion vector 29015.

    …Smith

    SEL7

    URGENT – IMMEDIATE BROADCAST REQUESTED
    Tornado Watch Number 167
    NWS Storm Prediction Center Norman OK
    335 PM CDT Thu Apr 24 2025

    The NWS Storm Prediction Center has issued a

    * Tornado Watch for portions of
    Oklahoma Panhandle
    Texas Panhandle and South Plains

    * Effective this Thursday afternoon and evening from 335 PM until
    1100 PM CDT.

    * Primary threats include…
    A couple tornadoes possible
    Scattered large hail and isolated very large hail events to 4
    inches in diameter likely
    Isolated damaging wind gusts to 70 mph possible

    SUMMARY…Widely scattered thunderstorms are forecast to rapidly
    develop this afternoon into the early evening. Environmental shear
    and buoyancy combinations strongly favor intense, discrete
    supercells. Large to giant hail will be probable with any
    supercell. The tornado risk will likely focus for a few hours
    during the early evening near a residual outflow boundary draped
    over parts of the Watch area.

    The tornado watch area is approximately along and 60 statute miles
    east and west of a line from 30 miles northeast of Guymon OK to 60
    miles southeast of Lubbock TX. For a complete depiction of the watch
    see the associated watch outline update (WOUS64 KWNS WOU7).

    PRECAUTIONARY/PREPAREDNESS ACTIONS…

    REMEMBER…A Tornado Watch means conditions are favorable for
    tornadoes and severe thunderstorms in and close to the watch
    area. Persons in these areas should be on the lookout for
    threatening weather conditions and listen for later statements
    and possible warnings.

    &&

    OTHER WATCH INFORMATION…CONTINUE…WW 166…

    AVIATION…Tornadoes and a few severe thunderstorms with hail
    surface and aloft to 4 inches. Extreme turbulence and surface wind
    gusts to 60 knots. A few cumulonimbi with maximum tops to 550. Mean
    storm motion vector 29015.

    …Smith

    Note: The Aviation Watch (SAW) product is an approximation to the watch area. The actual watch is depicted by the shaded areas.
    SAW7
    WW 167 TORNADO OK TX 242035Z – 250400Z
    AXIS..60 STATUTE MILES EAST AND WEST OF LINE..
    30NE GUY/GUYMON OK/ – 60SE LBB/LUBBOCK TX/
    ..AVIATION COORDS.. 50NM E/W /8WSW LBL – 57SE LBB/
    HAIL SURFACE AND ALOFT..4 INCHES. WIND GUSTS..60 KNOTS.
    MAX TOPS TO 550. MEAN STORM MOTION VECTOR 29015.

    LAT…LON 36980003 33050005 33050212 36980220

    THIS IS AN APPROXIMATION TO THE WATCH AREA. FOR A
    COMPLETE DEPICTION OF THE WATCH SEE WOUS64 KWNS
    FOR WOU7.

    Watch 167 Status Report Message has not been issued yet.

    Note:  Click for Complete Product Text.Tornadoes

    Probability of 2 or more tornadoes

    Mod (40%)

    Probability of 1 or more strong (EF2-EF5) tornadoes

    Low (20%)

    Wind

    Probability of 10 or more severe wind events

    Mod (30%)

    Probability of 1 or more wind events > 65 knots

    Low (20%)

    Hail

    Probability of 10 or more severe hail events

    High (70%)

    Probability of 1 or more hailstones > 2 inches

    High (70%)

    Combined Severe Hail/Wind

    Probability of 6 or more combined severe hail/wind events

    High (>95%)

    For each watch, probabilities for particular events inside the watch (listed above in each table) are determined by the issuing forecaster. The “Low” category contains probability values ranging from less than 2% to 20% (EF2-EF5 tornadoes), less than 5% to 20% (all other probabilities), “Moderate” from 30% to 60%, and “High” from 70% to greater than 95%. High values are bolded and lighter in color to provide awareness of an increased threat for a particular event.

    MIL OSI USA News –

  • MIL-OSI USA: Volcano Watch — Tilt, Tremor, and Lava: Remembering Mauna Loa’s 2022 Eruption Onset

    Source: US Geological Survey

    Volcano Watch is a weekly article and activity update written by U.S. Geological Survey Hawaiian Volcano Observatory scientists and affiliates.

    Interferometric Synthetic Aperture Radar (InSAR) image of Mauna Loa spanning November 16 to December 2, 2022. Concentric patterns of colored fringes indicate the complex pattern of deformation during the 2022 Mauna Loa eruption. Lava flows are shown by light red areas and summit tiltmeter site locations are shown with white circles.

    Many residents remember Mauna Loa—the largest active volcano on Earth—roaring awake after decades of slumber with a dynamic summit and Northeast Rift Zone (NERZ) eruption in late 2022. Geophysical instruments recorded many major, and even subtle, details the night of the 2022 Mauna Loa eruption onset. Here we’ll explore some of these monitoring data observations that give us clues as to what was happening beneath the surface.

    Around 10:20 p.m. HST on November 27, 2022, the USGS Hawaiian Volcano Observatory (HVO) monitoring networks detected rapid changes in Mauna Loa’s summit area. A swarm of small, shallow earthquakes occurred beneath the caldera and just south of the summit, lasting about an hour. At the same time, tiltmeters at Mauna Loa’s summit began to record significant ground deformation—a sign that magma was moving rapidly toward the surface.

    By 10:50 p.m., a tiltmeter designated MOK and located on the northeast rim of Mokuʻāweoweo (Mauna Loa’s summit caldera), measured inflationary tilt of over 100 microradians—pointing downwards to the northwest and away from the summit, which indicated that magma was continuing to rise upward from below. Tremor, a seismic signal often associated with magma movement, was also detected just minutes later.

    At 11:21 p.m. HST, the eruption began. Webcam imagery confirmed fissures had opened within Mokuʻāweoweo, and that lava was flooding the caldera floor. Almost immediately, the MOK tiltmeter showed rapid deflation, reflecting that magma from the summit reservoir was spilling out onto the surface.

    Meanwhile another tiltmeter designated SLC and located southwest of the summit—just above Mauna Loa’s Southwest Rift Zone (SWRZ)—began to show dramatic changes as well. By the early morning of November 28, the instrument had recorded over 500 microradians of tilt towards the north and northwest, and, soon after, it went off-scale because the amount of tilting was higher that it was designed to measure. The magnitude and direction of these readings were puzzling, as they weren’t exactly what would be expected if magma migrated toward the SWRZ, but any movement on this tiltmeter was concerning.  Such a scenario could result in lava flows threatening communities downslope, such as Hawaiian Ocean View Estates or others on the south Kona coast.

    However, no deformation was seen at a tiltmeter farther down the SWRZ (designated BLB), which suggested that the magma had not continued in that direction. Instead, the eruptive activity shifted northeast, and vents opened along Mauna Loa’s NERZ, feeding lava flows that mostly traveled north-northeast towards the Humuʻula Saddle. The eruption remained there until its end in mid-December. The large tilt magnitude measured at SLC was instead interpreted as a response to the summit reservoir’s extent and draining, not a sign of rift zone intrusion.

    As the eruption continued, significant deflation was recorded at summit GPS stations. Between November 27 and December 10, 2022, the summit caldera subsided nearly 40 centimeters (16 inches). This signal decreased with distance away from the summit, but even sites on Mauna Loa’s flanks measured several centimeters of subsidence. Satellite radar imagery from Interferometric Synthetic Aperture Radar (InSAR) showed additional complex patterns of ground movement, which indicate where magma either reached the surface or was very close to the surface.

    The effects of the eruption were not limited to just Mauna Loa. GPS stations on neighboring volcanoes on the Island of Hawai’i, including Kīlauea and Hualālai, recorded small but measurable motion in response to deflation of Mauna Loa during the active 2022 eruption. Some stations at Kīlauea began migrating northwest—toward Mauna Loa—within a single day of the eruption starting. This inter-volcano response illustrates how Mauna Loa’s activity can affect stress fields across the island and potentially influence other volcanic systems.

    Currently, instruments on Mauna Loa show low levels of seismicity and only minor inflation near the summit as the volcano recovers from the 2022 eruption and magma replenishes the reservoir system. Still, we know Mauna Loa will only slumber for so long, and another eruption will occur years or decades into the future. But the public can rest assured, while Kīlauea continues to erupt with its impressive lava fountains, HVO scientists are also continuing to closely monitor and study the now-quiet Mauna Loa behind the scenes as well as other volcanoes in Hawaii and American Samoa. 

    Volcano Activity Updates

    Kīlauea has been erupting episodically within the summit caldera since December 23, 2024. Its USGS Volcano Alert level is WATCH.

    The summit eruption at Kīlauea volcano that began in Halemaʻumaʻu crater on December 23 continued over the past week. Low-level precursory activity of episode 18 began the evening of April 16, and the 10-hour fountaining phase began the morning of April 22.  Episode 18 fountains from the south vent reached heights over 600 feet (200 meters) while minor activity occurred at the north vent. Since the end of episode 18, the summit region has showed inflation suggesting another episode is possible. Sulfur dioxide emission rates are elevated in the summit region during active eruption episodes. No unusual activity has been noted along Kīlauea’s East Rift Zone or Southwest Rift Zone. 

    Mauna Loa is not erupting. Its USGS Volcano Alert Level is at NORMAL.

    One earthquake was reported felt in the Hawaiian Islands during the past week: a M2.7 earthquake 3 km (1 mi) SSE of Leilani Estates at 6 km (4 mi) depth on April 17 at 8:55 p.m. HST.

    HVO continues to closely monitor Kīlauea and Mauna Loa.

    Please visit HVO’s website for past Volcano Watch articles, Kīlauea and Mauna Loa updates, volcano photos, maps, recent earthquake information, and more. Email questions to askHVO@usgs.gov.

    MIL OSI USA News –

  • MIL-OSI USA: SPC Severe Thunderstorm Watch 168

    Source: US National Oceanic and Atmospheric Administration

    Note:  The expiration time in the watch graphic is amended if the watch is replaced, cancelled or extended.Note: Click for Watch Status Reports.
    SEL8

    URGENT – IMMEDIATE BROADCAST REQUESTED
    Severe Thunderstorm Watch Number 168
    NWS Storm Prediction Center Norman OK
    400 PM CDT Thu Apr 24 2025

    The NWS Storm Prediction Center has issued a

    * Severe Thunderstorm Watch for portions of
    Far Southeast New Mexico
    West Texas

    * Effective this Thursday afternoon and evening from 400 PM until
    1000 PM CDT.

    * Primary threats include…
    Scattered large hail and isolated very large hail events to 3
    inches in diameter possible
    Scattered damaging wind gusts to 70 mph possible

    SUMMARY…Isolated thunderstorms are forecast to develop through the
    late afternoon and early evening. The stronger storms will likely
    become supercellular and pose mainly a threat for large to very
    large hail.

    The severe thunderstorm watch area is approximately along and 70
    statute miles east and west of a line from 65 miles north northwest
    of Big Spring TX to 25 miles west southwest of Dryden TX. For a
    complete depiction of the watch see the associated watch outline
    update (WOUS64 KWNS WOU8).

    PRECAUTIONARY/PREPAREDNESS ACTIONS…

    REMEMBER…A Severe Thunderstorm Watch means conditions are
    favorable for severe thunderstorms in and close to the watch area.
    Persons in these areas should be on the lookout for threatening
    weather conditions and listen for later statements and possible
    warnings. Severe thunderstorms can and occasionally do produce
    tornadoes.

    &&

    OTHER WATCH INFORMATION…CONTINUE…WW 166…WW 167…

    AVIATION…A few severe thunderstorms with hail surface and aloft to
    3 inches. Extreme turbulence and surface wind gusts to 60 knots. A
    few cumulonimbi with maximum tops to 500. Mean storm motion vector
    31015.

    …Smith

    Note: The Aviation Watch (SAW) product is an approximation to the watch area. The actual watch is depicted by the shaded areas.
    SAW8
    WW 168 SEVERE TSTM NM TX 242100Z – 250300Z
    AXIS..70 STATUTE MILES EAST AND WEST OF LINE..
    65NNW BGS/BIG SPRING TX/ – 25WSW 6R6/DRYDEN TX/
    ..AVIATION COORDS.. 60NM E/W /37S LBB – 66SSE FST/
    HAIL SURFACE AND ALOFT..3 INCHES. WIND GUSTS..60 KNOTS.
    MAX TOPS TO 500. MEAN STORM MOTION VECTOR 31015.

    LAT…LON 33080072 29900143 29900376 33080314

    THIS IS AN APPROXIMATION TO THE WATCH AREA. FOR A
    COMPLETE DEPICTION OF THE WATCH SEE WOUS64 KWNS
    FOR WOU8.

    Watch 168 Status Report Message has not been issued yet.

    Note:  Click for Complete Product Text.Tornadoes

    Probability of 2 or more tornadoes

    Low (10%)

    Probability of 1 or more strong (EF2-EF5) tornadoes

    Low ( 65 knots

    Low (20%)

    Hail

    Probability of 10 or more severe hail events

    Mod (40%)

    Probability of 1 or more hailstones > 2 inches

    Mod (40%)

    Combined Severe Hail/Wind

    Probability of 6 or more combined severe hail/wind events

    High (70%)

    For each watch, probabilities for particular events inside the watch (listed above in each table) are determined by the issuing forecaster. The “Low” category contains probability values ranging from less than 2% to 20% (EF2-EF5 tornadoes), less than 5% to 20% (all other probabilities), “Moderate” from 30% to 60%, and “High” from 70% to greater than 95%. High values are bolded and lighter in color to provide awareness of an increased threat for a particular event.

    MIL OSI USA News –

  • MIL-OSI Africa: Six sluice gates to be opened due to heavy inflows

    Source: South Africa News Agency

    Thursday, April 24, 2025

    Amid rapidly rising water levels at the Vaal Dam due to heavy inflows from the upper catchments, the Department of Water and Sanitation (DWS) will open six sluice gates to manage the water inflow of 2056.50 cubic metres per second (m3/s) of water flowing into the dam.

    The department announced the opening of a fifth sluice gate at 2:30pm, followed by a sixth gate at 4pm today.

    “At Bloemhof Dam, water outflows are also being increased incrementally at different times from 800 m3/s to 1050 m3/s at 09:00; 1300 m3/s at 11am; 1550 m3/s at 1pm; 1800 m3/s at 3pm and to 2000 m3/s by 5pm. These adjustments are necessary to manage the continuous rising inflows and safe operation of the Vaal and Bloemhof Dams, which were sitting at 113.54% and 107.30% by midday.

    “There are potential plans to further increase outflows from both dams tomorrow. One sluice gate remains opened at Grootdraai Dam, and the storage capacity is at 105.71%, with inflows of 141.72 m³/s. In the Orange River, the Gariep and the Vandekloof Dams are currently sitting at 107.13% and 105.3% respectively and overspilling,” the department said in a statement on Thursday.

    The department warned that the controlled and uncontrolled water releases at all these dams will lead to overtopping of riverbanks downstream of the Orange and the Vaal Rivers, resulting in flooding of settlements that are in the lower-lying areas within the 1 in 100-year floodline.

    “People living within the floodline downstream of the Vaal and Bloemhof Dams and have had to evacuate should continue to avoid the flooded areas as the river catchment remains oversaturated.” – SAnews.gov.za
     

    MIL OSI Africa –

  • MIL-OSI Africa: President Ramaphosa calls for comprehensive, unconditional ceasefire

    Source: South Africa News Agency

    By Dikeledi Molobela

    President Cyril Ramaphosa has called on both Ukraine and Russia to commit to a comprehensive and unconditional ceasefire, paving the way for meaningful dialogue and negotiations between the two nations. 

    The President emphasised that South Africa stands ready to continue to support all credible and inclusive multilateral efforts aimed at achieving a just, sustainable and comprehensive peace. 

    “We call upon all parties, both Russia and Ukraine, to ensure that there is a comprehensive ceasefire, an unconditional ceasefire, so that discussions and negotiations can start between the two countries. 

    “President Zelensky, as he himself would say, told me that as Ukraine, they are ready to engage in discussions and negotiations with Russia and they are also ready to have a comprehensive, unconditional ceasefire. This we believe is the best way towards ending the war between Russia and Ukraine,” he said. 

    President Ramaphosa, together with his Ukrainian counterpart, President Volodymyr Zelenskyy, addressed a media briefing at the Union Buildings following official talks on Thursday. 

    Zelenskyy, who had to cut his visit short due to an overnight attack in his country, was in South Africa on his first official visit. 

    This engagement follows President Ramaphosa’s visit to Ukraine in June 2023 as part of the African Peace Initiative, which also saw African leaders meeting with both Zelenskyy and Russian President Vladimir Putin to table a 10-point peace proposal. 

    READ | Africa’s peace mission ‘historic’ – President Ramaphosa

    President Ramaphosa emphasised that South Africa’s own journey from apartheid to democracy has taught the nation the value of engaging all parties in a conflict to achieve peaceful, just, and lasting solutions.

    “If there is one thing that our history has taught us, it is that diplomacy and dialogue are more powerful than any weapon that anyone can use. 
     
    “It is this understanding that informed South Africa’s participation in the African Peace Initiative and South Africa’s subsequent participation in the Ukraine Peace Formula,” he said. 

    Answering a question on whether Ukraine may need to cede part of its territory to Russia, President Ramaphosa said he views this as a precondition; however, the focus should be on Ukraine’s commitment to an unconditional ceasefire, which is seen as a positive step for negotiations. 

    “I think what we should focus on is that there is a willingness and a commitment from Ukraine for an unconditional ceasefire. An unconditional ceasefire sets a very good and positive tone for negotiations to commence. It is a confidence-building measure that should be a key ingredient in a negotiation process. So, I see this as great progress,” the President said.

    During the media engagement, President Ramaphosa also said he spoke to United States of America President Donald Trump this morning to discuss the peace process in Ukraine, where they both agreed that the war should end as soon as possible.
     
    “We both agreed that the war should be brought to an end as soon as possible to prevent further death and destruction. President Trump and I also agreed to meet soon to address this, and relations between South Africa and the United States. We both spoke about the need to foster good relations between our two countries,” he said. 
     
    Earlier in the week, President Ramaphosa also had a call with President Vladimir Putin, where they both committed to working together towards a peaceful resolution of the Russia-Ukraine conflict.

    In response, President Zelenskyy extended his gratitude to South Africa, adding that the shared understanding that the war needs to end as soon as possible was a key focus during discussions with President Ramaphosa. 

    “When he had been on a visit to Ukraine, I remember him saying these very important words about the need to reach a ceasefire as soon as possible — an unconditional ceasefire. I agreed to it.

    “I said that everything depends on Russia’s intention and desire because it is in Moscow where they have to make a decision on silence, making relevant orders to the Russian army,” he said. 

    President Zelenskyy said Ukraine was ready for a ceasefire but was forced to defend itself in the face of Russian attacks.

    “Unfortunately, after that, Russia renewed its assaults on the front line, the strikes against the civilian infrastructure,” Zelenskyy said.

    Zelenskyy also expressed that his country has been fighting for its freedom in this full-scale war for more than three years now.

    “We have a very fresh Russian attack this day… Unfortunately we have got losses and destruction…I decided to shorten my visit to your beautiful country,” he said. 

    However, Zelenskyy said he leaves behind his Foreign Minister to attend all the meetings that have been planned. – SAnews.gov.za

    MIL OSI Africa –

  • MIL-OSI Africa: South Africa and Ukraine solidify biliteral relations

    Source: South Africa News Agency

    By Dikeledi Molobela

    President Cyril Ramaphosa and his Ukrainian counterpart, President Volodymyr Zelenskyy, have used the official visit to deepen bilateral relations for the mutual benefit of the two countries.  

    President Ramaphosa hosted President Zelenskyy at the Union Buildings in Pretoria on Thursday, marking the first official visit by a Ukrainian Head of State to South Africa.

    He expressed that it was his distinct honour to receive President Zelenskyy and his delegation at the Union Buildings.
     
    “This is a historic visit. This is the first time the Head of State of Ukraine is visiting South Africa in the 33 years since we established formal diplomatic relations.
     
    “We acknowledge with great appreciation the support we received from Ukraine during our liberation struggle. We recall that a number of exiled South Africans received training and education in Ukraine,” the President said. 
     
    In June 2023, President Ramaphosa had the honour of visiting President Zelenskyy in Kyiv as part of the African Peace Initiative.
     
    Since then, he said they have maintained ongoing dialogue between the two countries and its diplomats.
     
    “We have just concluded successful talks during which we exchanged views on how to consolidate and deepen the bilateral relations between our two countries. We noted a growing interest in expanding relations in peace diplomacy, post-conflict reconstruction and development, and the empowerment of women.
     
    “We also discussed opportunities for cooperation in areas such as agriculture, trade, education, infrastructure and social exchanges,” President Ramaphosa said. 
     
    He expressed satisfaction that Ministers from both countries have held discussions on strengthening trade and investment opportunities, including opportunities in agriculture and agribusiness.
     
    “We acknowledge the significant strides that Ukraine has taken and in particular, the efforts of President Zelenskyy to expand relations with the African continent.
     
    “We note the provision of grain in areas of food stress in West and East Africa, the expansion of agricultural cooperation, and the opening of a grain hub at the Port of Mombasa in Kenya,” he said. 
     
    President Ramaphosa said these are the direct outcomes of the discussions that were held when he and other African Heads of State visited Kyiv in June 2023 as part of the African Peace Initiative. 
     
    “Our engagement today was an opportunity to discuss our shared interest in advancing peace, security, stability and sustainable development on the continent, in Ukraine and across the world.
     
    “We have reinforced our common commitment to respect the rule of law in international relations, multilateralism, the central role of the United Nations in global governance, and the maintenance of global peace and security,” he said. 

    Delivering his remarks, President Zelenskyy noted that South Africa is currently presiding over the Group of 20 (G20) and emphasised that the G20’s role in defending peace could be far more significant, a role he strongly counts on.

    He proposed the creation of a joint mineral hub between Ukraine and South Africa to facilitate the production and transport of fertilisers, supporting the broader Southern African region.

    “Our bilateral agenda is also very important. Ukraine is keenly interested in energy security matters and fertiliser production… We are ready to work with the South Africans to build more modern production facilities in your country for better resilient power sector,” he said. 

    President Zelenskyy also highlighted opportunities for cooperation in the agricultural sector, which could significantly enhance bilateral trade between the two countries.

    “Ukraine offers South Africa to have a joint mineral hub to produce and transport fertilisers to support the whole of your region. There are potential projects in the agricultural sector. This can lead to better bilateral trade results between Ukraine and South Africa,” he said. 

    He added that Ukraine is also ready to work together to develop modern security systems for national parks, urban environments, and other areas requiring advanced technological solutions. 

    President Zelenskyy expressed Ukraine’s willingness to partner with South Africa to boost power generation, ranging from atomic energy to affordable renewables. 

    “We are also ready to work together to drastically increase power generation in your country, from atomic energy to renewable. Affordable energy has always contributed to economic growth, and I’ve already tasked my professional team to look into a joint project between our countries,” he said.

    He also presented President Ramaphosa with a list of 400 Ukrainian children reportedly being held against their will in Russia.

    President Zelenskyy acknowledged South Africa’s role as co-leader of the global coalition to bring Ukrainian children home and expressed hope that President Ramaphosa would assist in securing their return. 

    “I presented President Ramaphosa with a list of 400 Ukrainian children. It’s very important for us to look after them… We need to get them back. I truly hope that President Ramaphosa will help us to bring them home indeed. 

    “I’d like to thank you for this visit, for the opportunity to meet you. We strongly believe that the President, South Africa, all other partners in Africa will help us to… to [get Russia] to engage in the full-scale ceasefire,” Zelenskyy said. – SAnews.gov.za

    MIL OSI Africa –

  • MIL-OSI USA: Gillibrand, Schumer, Torres Push The U.S. Consumer Product Safety Commission To Swiftly Finalize Federal Regulations For Lithium-Ion Batteries; Rule Would Make E-Bikes Safer

    US Senate News:

    Source: United States Senator for New York Kirsten Gillibrand

    Rechargeable Lithium-Ion Batteries Have Caused 1,000+ Fires And 34 Deaths Since 2019 In New York City Alone

    Rulemaking Would Protect Innocent Americans From The Dangers Of Cheap And Defective Imported Lithium-Ion Batteries 

    WASHINGTON, D.C. – Today, U.S. Senator Kirsten Gillibrand, Senate Minority Leader Chuck Schumer, and Representative Ritchie Torres are pushing the U.S. Consumer Product Safety Commission (CPSC) to move forward and finalize federal regulations for lithium-ion batteries by voting in favor of the notice of proposed rulemaking (NPRM) on Wednesday, April 30. CPSC’s decision to move forward on a vote comes after the members sent a letter to CPSC earlier this week advocating for this move.

    Lithium-ion batteries, which are commonly used in e-bikes, electric scooters, and other micromobility devices, are often manufactured abroad without being subject to acceptable safety standards. As a result, they commonly cause fires that lead to property damage or loss of life. Following an indefinite postponement of the meeting to advance federal regulations, the lawmakers called on the CPSC to issue a notice of proposed rulemaking (NPRM) – an official document explaining an agency’s plan to address a particular problem – on lithium-ion batteries as soon as possible in order to protect the lives of Americans who rely on e-bikes and e-scooters. CPSC scheduled a vote on the NPRM yesterday.

    The members noted in the letter, “Last year, we led the effort in Congress to reach a bipartisan compromise that would have authorized the Commission to enact safety standards based upon generally accepted voluntary standards for the use of lithium-ion batteries in micromobility products. We will continue fighting to pass the Setting Consumer Standards for Lithium-Ion Batteries Act, but as the legislation works its way through Congress, the Commission must do all it can to save lives and protect Americans from the poorly-made batteries from China that have caused harm.”

    The full text of the letter is available here and below.

    Dear Acting Chairman Feldman:

     We write to urge the U.S. Consumer Product Safety Commission (the “Commission”) to swiftly issue a notice of proposed rulemaking (“NPRM”) moving the proposed rule to establish a new safety standard for lithium-ion batteries used in micromobility products and electrical systems of micromobility products containing such batteries, which has received bipartisan support and would save countless lives. 

     As you know, last year, we led the effort in Congress to reach a bipartisan compromise that would have authorized the Commission to enact safety standards based upon generally accepted voluntary standards for the use of lithium-ion batteries in micromobility products. We will continue fighting to pass the Setting Consumer Standards for Lithium-Ion Batteries Act but as the legislation works its way through Congress, the Commission must do all it can to save lives and protect Americans from the poorly-made batteries from China that have caused harm.

    To that end, we were pleased to see CPSC formulate proposed safety standards that would address the risk of death and injury associated with lithium-ion batteries used in micromobility product electrical systems. A decisional meeting to issue a NPRM was scheduled for January 29, 2025, but has been indefinitely postponed. Given the public safety benefits that would arise from issuance and finalization of the NPRM, we strongly urge the Commission to move forward with advancing it as soon as possible. Any delay would not only impact consumers across the country, it would also put the safety and lives of our country’s finest heroes, our law enforcement and first responders, in danger. 

    Further, many of these cheap and defective lithium-ion batteries are manufactured in China without being subject to effective safety standards, ultimately causing fires or other safety hazards. In New York City alone, the New York City Fire Department reports rechargeable lithium-ion batteries have caused more than 1,000 fires since 2019, resulting in 523 injuries, 34 deaths & damage to over 650 hundreds of structures. In 2024, there were 279 e-bike and e-mobility device battery fires in NYC, a dramatic increase from the 30 that occurred in 2019. While the Administration and the Commission consider policy options to address economic relations with China, it is critical that the Commission advance this rulemaking as a means of protecting innocent Americans from the dangers of cheap and defective imported lithium-ion batteries.  

    As the Commission continues its work, we stand ready to work together to address this serious public safety concern. Thank you for your prompt attention to this important issue. 

    MIL OSI USA News –

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

    Source: GlobeNewswire (MIL-OSI)

    ST. PETERSBURG, Fla., April 24, 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 first quarter ended March 31, 2025, on Thursday, May 8, 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.

    First Quarter 2025 Conference Call Details:
    Thursday, May 8, 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 Stable outlook by Kroll. ACIC maintains a ‘BB+’ issuer rating with a Stable 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@equityny.com
    (212) 836-9623

    The MIL Network –

  • MIL-OSI: MidWestOne Financial Group, Inc. Reports Financial Results For the First Quarter of 2025

    Source: GlobeNewswire (MIL-OSI)

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

    First Quarter 2025 Summary1

    • Net income of $15.1 million, or $0.73 per diluted common share.
      • Net interest margin (tax equivalent) was 3.44%;2 core net interest margin expanded 10 basis points (“bps”) to 3.36%.2
      • Noninterest expenses were $36.3 million; efficiency ratio was 59.38%.2
      • Return on average assets of 1.00%.
    • Criticized loans ratio improved 54 bps to 5.47%; nonperforming assets ratio improved 7 bps to 0.33%.
    • Tangible book value per share of $23.36,2 an increase of 4.4%.
    • Common equity tier 1 (“CET1”) capital ratio improved 24 bps to 10.97%.

    CEO Commentary

    Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, “We are pleased with the continued execution of our strategic plan initiatives despite a more uncertain economic environment. Our return on average assets eclipsed 1% for the second straight quarter driven by disciplined balance sheet management, core net interest margin expansion of 10 bps2 and solid expense control. Loan growth was flat in the quarter, somewhat softer than anticipated, due to pay-offs and latter quarter market volatility. The majority of our asset quality metrics improved significantly, led by reductions in nonperforming assets and criticized loans. Net charge-offs increased to 29 basis points, with the majority of the increase due to a partial charge-off on a previously reserved CRE loan as we prepare for resolution. Driven by earnings and lower accumulated other comprehensive loss, tangible book value per share increased 4.4% to $23.362 and the CET1 ratio grew to 10.97%, edging closer to our target range of 11.0%-11.50%.

    Thank you to our team members who continued to execute well and serve our customers amidst market volatility. We are pleased with the transformation of our company and our solid foundation of increased capital, earnings power, asset quality, and a premium core deposit franchise position us well for uncertain economic times and the remainder of 2025.”

    1 First Quarter Summary compares to the fourth quarter of 2024 (the “linked quarter”) unless noted.
    2 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

        As of or for the quarter ended
    (Dollars in thousands, except per share amounts and as noted)   March 31,   December 31,   March 31,
        2025       2024       2024  
    Financial Results            
    Revenue   $ 57,575     $ 59,775     $ 44,481  
    Credit loss expense     1,687       1,291       4,689  
    Noninterest expense     36,293       37,372       35,565  
    Net income     15,138       16,330       3,269  
    Adjusted earnings(3)     15,301       16,112       4,504  
    Per Common Share            
    Diluted earnings per share   $ 0.73     $ 0.78     $ 0.21  
    Adjusted earnings per share(3)     0.73       0.77       0.29  
    Book value     27.85       26.94       33.53  
    Tangible book value(3)     23.36       22.37       27.14  
    Balance Sheet & Credit Quality            
    Loans In millions   $ 4,304.2     $ 4,315.6     $ 4,414.6  
    Investment securities In millions     1,305.5       1,328.4       1,862.2  
    Deposits In millions     5,489.1       5,478.0       5,585.2  
    Net loan charge-offs In millions     3.1       0.7       0.2  
    Allowance for credit losses ratio     1.25 %     1.28 %     1.27 %
    Selected Ratios            
    Return on average assets     1.00 %     1.03 %     0.20 %
    Net interest margin, tax equivalent(3)     3.44 %     3.43 %     2.33 %
    Return on average equity     10.74 %     11.53 %     2.49 %
    Return on average tangible equity(3)     13.75 %     14.80 %     4.18 %
    Efficiency ratio(3)     59.38 %     59.06 %     71.28 %
                             

    REVENUE REVIEW

    Revenue               Change   Change
                  1Q25 vs   1Q25 vs
    (Dollars in thousands)   1Q25   4Q24   1Q24   4Q24   1Q24
    Net interest income   $           47,439   $         48,938   $        34,731   (3)%   37 %
    Noninterest income                 10,136               10,837                9,750   (6)%   4 %
    Total revenue, net of interest expense   $           57,575   $         59,775   $        44,481   (4)%   29 %
                                 

    Total revenue for the first quarter of 2025 decreased $2.2 million from the fourth quarter of 2024 due to lower net interest income and noninterest income during the quarter. When compared to the first quarter of 2024, total revenue increased $13.1 million, due to higher net interest income and higher noninterest income.

    Net interest income of $47.4 million for the first quarter of 2025 decreased $1.5 million from the fourth quarter of 2024, due to lower earning asset volumes and yields, partially offset by lower funding volumes and costs. When compared to the first quarter of 2024, net interest income increased $12.7 million, due to higher earning asset yields and lower funding volumes and costs, partially offset by lower earning asset volumes.

    The Company’s tax equivalent net interest margin was 3.44%3 in the first quarter of 2025, compared to 3.43%3 in the fourth quarter of 2024, driven by lower funding costs, partially offset by a decline in earning asset yields. Interest bearing liability costs during the first quarter of 2025 decreased 11 bps to 2.41%, due to reductions of short-term borrowings, interest bearing deposits, and long-term debt costs of 78 bps, 10 bps, and 7 bps, to 3.75%, 2.31%, and 6.41%, respectively, from the fourth quarter of 2024.

    The Company’s tax equivalent net interest margin was 3.44%3 in the first quarter of 2025, compared to 2.33%3 in the first quarter of 2024, driven by higher earning asset yields and lower interest-bearing liability costs. Total earning assets yield increased 79 bps from the first quarter of 2024, primarily due to increases of 192 bps and 20 bps in total investment securities and loan yields, respectively. Interest bearing liability costs decreased 34 bps to 2.41%, due to short-term borrowing costs of 3.75%, long-term debt costs of 6.41%, and interest-bearing deposit costs of 2.31%, which decreased 107 bps, 45 bps, and 14 bps, respectively, from the first quarter of 2024.

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

    Noninterest Income             Change   Change
                1Q25 vs   1Q25 vs
    (In thousands) 1Q25   4Q24   1Q24   4Q24   1Q24
    Investment services and trust activities $ 3,544     $ 3,779   $ 3,503     (6)%   1 %
    Service charges and fees   2,131       2,159     2,144     (1)%   (1)%
    Card revenue   1,744       1,833     1,943     (5)%   (10)%
    Loan revenue   1,194       1,841     856     (35)%   39 %
    Bank-owned life insurance   1,057       719     660     47 %   60 %
    Investment securities gains, net   33       161     36     (80)%   (8)%
    Other   433       345     608     26 %   (29)%
    Total noninterest income $ 10,136     $ 10,837   $ 9,750     (6)%   4 %
                       
    MSR adjustment (included above in Loan revenue) $ (213 )   $ 164   $ (368 )   (230)%   (42)%
                                 

    Noninterest income for the first quarter of 2025 decreased $0.7 million from the linked quarter, primarily due to declines of $0.6 million and $0.2 million in loan revenue and investment services and trust activities revenue, respectively. The decrease in loan revenue was reflective of an unfavorable change in the fair value of our mortgage servicing rights of $0.4 million, coupled with a decrease in Small Business Administration (“SBA”) gain on sale revenue of $0.3 million. The decrease in investment services and trust activities revenue was driven by a decline in assets under administration due to market volatility. Partially offsetting these decreases was an increase of $0.3 million in bank-owned life insurance revenue, due primarily to $0.4 million of death benefit recognized in the first quarter of 2025.

    Noninterest income for the first quarter of 2025 increased $0.4 million from the first quarter of 2024 due primarily to increases of $0.4 million and $0.3 million in bank-owned life insurance and loan revenue, respectively. The bank-owned life insurance increase was due primarily to the death benefit noted above. The increase in loan revenue was due primarily to the mortgage servicing right valuation adjustment, coupled with higher SBA gain on sale revenue and other loan income. Partially offsetting these increases were decreases of $0.2 million in each of card revenue and other revenue.

    EXPENSE REVIEW

    Noninterest Expense             Change   Change
                1Q25 vs   1Q25 vs
    (In thousands) 1Q25   4Q24   1Q24   4Q24   1Q24
    Compensation and employee benefits $ 21,212   $ 20,684   $ 20,930   3 %   1 %
    Occupancy expense of premises, net   2,588     2,772     2,813   (7)%   (8)%
    Equipment   2,426     2,688     2,600   (10)%   (7)%
    Legal and professional   2,226     2,534     2,059   (12)%   8 %
    Data processing   1,698     1,719     1,360   (1)%   25 %
    Marketing   552     793     598   (30)%   (8)%
    Amortization of intangibles   1,408     1,449     1,637   (3)%   (14)%
    FDIC insurance   917     980     942   (6)%   (3)%
    Communications   159     154     196   3 %   (19)%
    Foreclosed assets, net   74     56     358   32 %   (79)%
    Other   3,033     3,543     2,072   (14)%   46 %
         Total noninterest expense $ 36,293   $ 37,372   $ 35,565   (3)%   2 %
                               
    Merger-related Expenses          
             
    (In thousands) 1Q25   4Q24   1Q24
    Compensation and employee benefits $                 —   $                 —   $               241
    Occupancy expense of premises, net                     —                       —                     152
    Equipment                     —                       21                     149
    Legal and professional                     40                       —                     573
    Data processing                     —                       10                       61
    Marketing                     —                       —                       32
    Communications                     —                       —                         1
    Other                     —                       —                     105
    Total merger-related expenses $                 40   $                 31   $            1,314
                     

    Noninterest expense for the first quarter of 2025 decreased $1.1 million from the linked quarter, primarily due to decreases in other noninterest expense, legal and professional, equipment, and occupancy expense of premises, net, of $0.5 million, $0.3 million, $0.3 million, and $0.2 million, respectively. The primary drivers of the decrease in other noninterest expense were declines in fraud loss expense of $0.3 million and customer deposit costs of $0.1 million. The $0.3 million decrease in legal and professional expense was primarily driven by lower litigation-related legal costs. The decrease in equipment of $0.3 million was primarily driven by fewer small equipment purchases, while the decrease in occupancy expense of premises, net was due primarily to lower property tax expense. Partially offsetting these decreases was an increase of $0.5 million in compensation and employee benefits which reflected an increase in equity compensation and payroll tax expenses.

    Noninterest expense for the first quarter of 2025 increased $0.7 million from the first quarter of 2024 primarily due to increases in other noninterest expense, data processing, and compensation and employee benefits of $1.0 million, $0.3 million and $0.3 million, respectively. The increase in other noninterest expense was due primarily to customer deposit costs while the increase in data processing was driven core banking system costs. The increase in compensation and employee benefits was primarily driven by medical benefits expenses, wages expense, and incentive expense due to improved performance. Partially offsetting these identified increases was a decline of $1.3 million in merger-related expenses.

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

    BALANCE SHEET REVIEW

    Total assets were $6.25 billion at March 31, 2025, compared to $6.24 billion at December 31, 2024 and $6.75 billion at March 31, 2024. The increase from December 31, 2024 was primarily due to higher cash balances, partially offset by lower securities balances. Compared to March 31, 2024, the decrease was primarily driven by the sale of assets associated with our Florida banking operations in the second quarter of 2024 coupled with the pay-off of Bank Term Funding Program (“BTFP”) borrowings with proceeds received from securities sales transactions in the fourth quarter of 2024.

    Loans Held for Investment March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Commercial and industrial $1,140,138   26.5 % $1,126,813   26.1 % $1,105,718   25.0 %
    Agricultural 131,409   3.1   119,051   2.8   113,029   2.6  
    Commercial real estate                        
    Construction and development 293,280   6.8   324,896   7.5   403,571   9.1  
    Farmland 180,633   4.2   182,460   4.2   184,109   4.2  
    Multifamily 421,204   9.8   423,157   9.8   409,504   9.3  
    Other 1,425,062   33.0   1,414,168   32.7   1,440,645   32.7  
    Total commercial real estate 2,320,179   53.8   2,344,681   54.2   2,437,829   55.3  
    Residential real estate                        
    One-to-four family first liens 471,688   11.0   477,150   11.1   495,408   11.2  
    One-to-four family junior liens 182,346   4.2   179,232   4.2   182,001   4.1  
    Total residential real estate 654,034   15.2   656,382   15.3   677,409   15.3  
    Consumer 58,424   1.4   68,700   1.6   80,661   1.8  
    Loans held for investment, net of unearned income $4,304,184   100.0 % $4,315,627   100.0 % $4,414,646   100.0 %
                             
    Total commitments to extend credit $1,080,300       $1,080,737       $1,230,612      

    Loans held for investment, net of unearned income, decreased $11.4 million, or 0.3%, to $4.30 billion from $4.32 billion at December 31, 2024, primarily due to the reclassification of $11.0 million of credit card receivables to loans held for sale in the first quarter of 2025. Management expects the credit card portfolio sale to close in the fourth quarter of 2025.

    Loans held for investment, net of unearned income, decreased $110.5 million, or 2.5%, to $4.30 billion from $4.41 billion at March 31, 2024. The decrease from the first quarter of 2024 was driven primarily by the sale of loans associated with our Florida banking operations in the second quarter of 2024, partially offset by organic loan growth and higher line of credit usage.

    Investment Securities March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Available for sale $1,305,530   100.0 % $1,328,433   100.0 % $797,230   42.8 %
    Held to maturity —   — % —   — % 1,064,939   57.2 %
    Total investment securities $1,305,530       $1,328,433       $1,862,169      

    Investment securities at March 31, 2025 were $1.31 billion, decreasing $22.9 million from December 31, 2024 and decreasing $556.6 million from March 31, 2024. The decrease from the fourth quarter of 2024 was primarily due to principal cash flows received from scheduled payments, calls, and maturities. The decrease from the first quarter of 2024 stemmed primarily from the sale of debt securities in connection with a balance sheet repositioning, as well as principal cash flows received from scheduled payments, calls, and maturities. 

    Deposits March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Noninterest bearing deposits $903,714   16.5 % $951,423   17.4 % $920,764   16.5 %
    Interest checking deposits 1,283,328   23.3   1,258,191   22.9   1,349,823   24.2  
    Money market deposits 1,002,066   18.3   1,053,988   19.2   1,122,717   20.1  
    Savings deposits 877,348   16.0   820,549   15.0   728,276   13.0  
    Time deposits of $250 and under 818,012   14.9   826,793   15.1   787,851   14.1  
    Total core deposits 4,884,468   89.0   4,910,944   89.6   4,909,431   87.9  
    Brokered time deposits 200,000   3.6   200,000   3.7   205,000   3.7  
    Time deposits over $250 404,674   7.4   367,038   6.7   470,805   8.4  
    Total deposits $5,489,142   100.0 % $5,477,982   100.0 % $5,585,236   100.0 %

    Total deposits increased $11.2 million, or 0.2%, to $5.49 billion, from $5.48 billion at December 31, 2024. Total deposits decreased $96.1 million, or 1.7%, from $5.59 billion at March 31, 2024, primarily due to the deposits transferred in the sale of our Florida banking operations, partially offset by organic deposit growth in our targeted metropolitan markets.

    Borrowed Funds March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Short-term borrowings $1,482   1.3 % $3,186   2.7 % $422,988   77.6 %
    Long-term debt 111,398   98.7 % 113,376   97.3 % 122,066   22.4 %
    Total borrowed funds $112,880       $116,562       $545,054      

    Borrowed funds were $112.9 million at March 31, 2025, a decrease of $3.7 million from December 31, 2024 and a decrease of $432.2 million from March 31, 2024. The decrease compared to the linked quarter was due to lower customer repurchase agreement volumes and scheduled payments on long-term debt. The decrease compared to March 31, 2024 was primarily due to the pay-off of $405.0 million of BTFP borrowings and $13.0 million of a revolving credit facility, as well as scheduled payments on long-term debt.

    Capital March 31,   December 31,   March 31,
    (Dollars in thousands) 2025 (1)     2024       2024  
    Total shareholders’ equity $ 579,625     $ 559,696     $ 528,040  
    Accumulated other comprehensive loss   (63,098 )     (72,762 )     (60,804 )
    MidWestOneFinancial Group, Inc. Consolidated          
    Tier 1 leverage to average assets ratio   9.50 %     9.15 %     8.16 %
    Common equity tier 1 capital to risk-weighted assets ratio   10.97 %     10.73 %     8.98 %
    Tier 1 capital to risk-weighted assets ratio   11.84 %     11.59 %     9.75 %
    Total capital to risk-weighted assets ratio   14.34 %     14.07 %     11.97 %
    MidWestOneBank          
    Tier 1 leverage to average assets ratio   10.42 %     10.12 %     9.36 %
    Common equity tier 1 capital to risk-weighted assets ratio   13.02 %     12.86 %     11.20 %
    Tier 1 capital to risk-weighted assets ratio   13.02 %     12.86 %     11.20 %
    Total capital to risk-weighted assets ratio   14.21 %     14.02 %     12.25 %
    (1) Regulatory capital ratios for March 31, 2025 are preliminary          
               

    Total shareholders’ equity at March 31, 2025 increased $19.9 million from December 31, 2024, driven primarily by an increase in retained earnings and a decrease in accumulated other comprehensive loss. Total shareholders’ equity at March 31, 2025 increased $51.6 million from March 31, 2024, primarily due to increases in common stock and additional pain-in-capital stemming from the common equity capital raise in the third quarter of 2024, partially offset by a decrease in retained earnings.

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

    No common shares were repurchased by the Company during the period December 31, 2024 through March 31, 2025 or for the subsequent period through April 24, 2025. The current share repurchase program allows for the repurchase of up to $15.0 million of the Company’s common shares. As of March 31, 2025, $15.0 million remained available under this program.

    CREDIT QUALITY REVIEW

    Credit Quality As of or For the Three Months Ended
    March 31,   December 31,   March 31,
    (Dollars in thousands)   2025       2024       2024  
    Credit loss expense related to loans $ 1,787     $ 1,891     $ 4,589  
    Net charge-offs   3,087       691       189  
    Allowance for credit losses   53,900       55,200       55,900  
    Pass $ 4,068,707     $ 4,056,361     $ 4,098,102  
    Special Mention   121,494       148,462       152,604  
    Classified   113,983       110,804       163,940  
    Criticized   235,477       259,266       316,544  
    Loans greater than 30 days past due and accruing $ 6,119     $ 9,378     $ 8,772  
    Nonperforming loans $ 17,470     $ 21,847     $ 29,267  
    Nonperforming assets   20,889       25,184       33,164  
    Net charge-off ratio(1)   0.29 %     0.06 %     0.02 %
    Classified loans ratio(2)   2.65 %     2.57 %     3.71 %
    Criticized loans ratio(3)   5.47 %     6.01 %     7.17 %
    Nonperforming loans ratio(4)   0.41 %     0.51 %     0.66 %
    Nonperforming assets ratio(5)   0.33 %     0.40 %     0.49 %
    Allowance for credit losses ratio(6)   1.25 %     1.28 %     1.27 %
    Allowance for credit losses to nonaccrual loans ratio(7)   309.47 %     254.32 %     197.53 %
    (1) Net charge-off ratio is calculated as annualized net charge-offs divided by the sum of average loans held for investment, net of unearned income and average loans held for sale, during the period.
    (2) Classified loans ratio is calculated as classified loans divided by loans held for investment, net of unearned income, at the end of the period.
    (3) Criticized loans ratio is calculated as criticized loans divided by loans held for investment, net of unearned income, at the end of the period.
    (4) Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
    (5) Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period.
    (6) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income, at the end of the period.
    (7) Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period.
     

    Nonperforming loans and nonperforming assets ratios improved 10 bps and 7 bps, to 0.41% and 0.33%, respectively, compared to the linked quarter. In addition, special mention loan balances decreased $27.0 million, or 18%, while classified loan balances remained relatively stable with an increase of $3.2 million, or 3%. When compared to the same period of the prior year, the nonperforming loans and nonperforming asset ratios improved 25 bps and 16 bps, respectively, while the classified loan ratio improved 106 bps. Special mention loan balances decreased $31.1 million, or 20%. The net charge-off ratio increased 23 bps from the linked quarter and 27 bps from the same period in the prior year.

    As of March 31, 2025, the allowance for credit losses was $53.9 million and the allowance for credit losses ratio was 1.25%, compared with $55.2 million and 1.28%, respectively, at December 31, 2024. Credit loss expense of $1.7 million in the first quarter of 2025 primarily reflected additional reserve on pooled loans, offset by a reduction of $0.1 million in the reserve for unfunded loan commitments.

    Nonperforming Loans Roll Forward Nonaccrual   90+ Days Past Due
    & Still Accruing    		   Total
    (Dollars in thousands)    
    Balance at December 31, 2024 $21,705   $142   $21,847
    Loans placed on nonaccrual or 90+ days past due & still accruing 3,121   225   3,346
    Proceeds related to repayment or sale (4,158)   —   (4,158)
    Loans returned to accrual status or no longer past due (336)   (49)   (385)
    Charge-offs (2,774)   (259)   (3,033)
    Transfers to foreclosed assets (141)   —   (141)
    Transfer to nonaccrual —   (6)   (6)
    Balance at March 31, 2025 $17,417   $53   $17,470


    CONFERENCE CALL DETAILS

    The Company will host a conference call for investors at 11:00 a.m. CT on Friday, April 25, 2025. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=29396e9f&confId=80376. After pre-registering for this event you will receive your access details via email. On the day of the call, you are also able to dial 1-833-470-1428 using an access code of 527448 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until July 24, 2025 by calling 1-866-813-9403 and using the replay access code of 162684. A transcript of the call will also be available on the Company’s web site (www.midwestonefinancial.com) within three business days of the call.

    ABOUT MIDWESTONE FINANCIAL GROUP, INC.

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

    Cautionary Note Regarding Forward-Looking Statements

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

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

    MIDWESTONE FINANCIAL GROUP, INC.
    FIVE QUARTER CONSOLIDATED BALANCE SHEETS

      March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands)   2025       2024       2024       2024       2024  
    ASSETS                  
    Cash and due from banks $            68,545     $            71,803     $            72,173     $            66,228     $            68,430  
    Interest earning deposits in banks              182,360                  133,092                  129,695                    35,340                    29,328  
    Federal funds sold                       —                           —                           —                           —                            4  
    Total cash and cash equivalents              250,905                  204,895                  201,868                  101,568                    97,762  
    Debt securities available for sale at fair value           1,305,530               1,328,433               1,623,104                  771,034                  797,230  
    Held to maturity securities at amortized cost                       —                           —                           —               1,053,080               1,064,939  
    Total securities           1,305,530               1,328,433               1,623,104               1,824,114               1,862,169  
    Loans held for sale                13,836                         749                      3,283                      2,850                      2,329  
    Gross loans held for investment           4,315,546               4,328,413               4,344,559               4,304,619               4,433,258  
    Unearned income, net              (11,362 )                (12,786 )                (15,803 )                (17,387 )                (18,612 )
    Loans held for investment, net of unearned income           4,304,184               4,315,627               4,328,756               4,287,232               4,414,646  
    Allowance for credit losses              (53,900 )                (55,200 )                (54,000 )                (53,900 )                (55,900 )
    Total loans held for investment, net           4,250,284               4,260,427               4,274,756               4,233,332               4,358,746  
    Premises and equipment, net                90,031                    90,851                    90,750                    91,793                    95,986  
    Goodwill                69,788                    69,788                    69,788                    69,388                    71,118  
    Other intangible assets, net                23,611                    25,019                    26,469                    27,939                    29,531  
    Foreclosed assets, net                  3,419                      3,337                      3,583                      6,053                      3,897  
    Other assets              246,990                  252,830                  258,881                  224,621                  226,477  
    Total assets $       6,254,394     $       6,236,329     $       6,552,482     $       6,581,658     $       6,748,015  
    LIABILITIES                       
    Noninterest bearing deposits $          903,714     $          951,423     $          917,715     $          882,472     $          920,764  
    Interest bearing deposits           4,585,428               4,526,559               4,451,012               4,529,947               4,664,472  
    Total deposits           5,489,142               5,477,982               5,368,727               5,412,419               5,585,236  
    Short-term borrowings                  1,482                      3,186                  410,630                  414,684                  422,988  
    Long-term debt              111,398                  113,376                  115,051                  114,839                  122,066  
    Other liabilities                72,747                    82,089                    95,836                    96,430                    89,685  
    Total liabilities           5,674,769               5,676,633               5,990,244               6,038,372               6,219,975  
    SHAREHOLDERS’ EQUITY                       
    Common stock                21,580                    21,580                    21,580                    16,581                    16,581  
    Additional paid-in capital              414,258                  414,987                  414,965                  300,831                  300,845  
    Retained earnings              227,790                  217,776                  206,490                  306,030                  294,066  
    Treasury stock              (20,905 )                (21,885 )                (21,955 )                (22,021 )                (22,648 )
    Accumulated other comprehensive loss              (63,098 )                (72,762 )                (58,842 )                (58,135 )                (60,804 )
    Total shareholders’ equity              579,625                  559,696                  562,238                  543,286                  528,040  
    Total liabilities and shareholders’ equity $       6,254,394     $       6,236,329     $       6,552,482     $       6,581,658     $       6,748,015  
                                           

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

      Three Months Ended
      March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands, except per share data)   2025     2024     2024       2024     2024
    Interest income                  
    Loans, including fees $            59,462   $            62,458   $            62,521     $            61,643   $            57,947
    Taxable investment securities                13,327                  11,320                   8,779                     9,228                   9,460
    Tax-exempt investment securities                    703                      728                   1,611                     1,663                   1,710
    Other                 1,247                   3,761                      785                        242                      418
    Total interest income                74,739                  78,267                  73,696                    72,776                  69,535
    Interest expense                  
    Deposits                25,484                  27,324                  29,117                    28,942                  27,726
    Short-term borrowings                      25                      115                   5,043                     5,409                   4,975
    Long-term debt                 1,791                   1,890                   2,015                     2,078                   2,103
    Total interest expense                27,300                  29,329                  36,175                    36,429                  34,804
    Net interest income                47,439                  48,938                  37,521                    36,347                  34,731
    Credit loss expense                 1,687                   1,291                   1,535                     1,267                   4,689
    Net interest income after credit loss expense                45,752                  47,647                  35,986                    35,080                  30,042
    Noninterest income                  
    Investment services and trust activities                 3,544                   3,779                   3,410                     3,504                   3,503
    Service charges and fees                 2,131                   2,159                   2,170                     2,156                   2,144
    Card revenue                 1,744                   1,833                   1,935                     1,907                   1,943
    Loan revenue                 1,194                   1,841                      760                     1,525                      856
    Bank-owned life insurance                 1,057                      719                      879                        668                      660
    Investment securities gains (losses), net                      33                      161              (140,182 )                        33                        36
    Other                    433                      345                      640                    11,761                      608
    Total noninterest income (loss)                10,136                  10,837              (130,388 )                  21,554                   9,750
    Noninterest expense                  
    Compensation and employee benefits                21,212                  20,684                  19,943                    20,985                  20,930
    Occupancy expense of premises, net                 2,588                   2,772                   2,443                     2,435                   2,813
    Equipment                 2,426                   2,688                   2,486                     2,530                   2,600
    Legal and professional                 2,226                   2,534                   2,261                     2,253                   2,059
    Data processing                 1,698                   1,719                   1,580                     1,645                   1,360
    Marketing                    552                      793                      619                        636                      598
    Amortization of intangibles                 1,408                   1,449                   1,470                     1,593                   1,637
    FDIC insurance                    917                      980                      923                     1,051                      942
    Communications                    159                      154                      159                        191                      196
    Foreclosed assets, net                      74                        56                      330                        138                      358
    Other                 3,033                   3,543                   3,584                     2,304                   2,072
    Total noninterest expense                36,293                  37,372                  35,798                    35,761                  35,565
    Income (loss) before income tax expense                19,595                  21,112              (130,200 )                  20,873                   4,227
    Income tax expense (benefit)                 4,457                   4,782                (34,493 )                   5,054                      958
    Net income (loss) $            15,138   $            16,330   $          (95,707 )   $            15,819   $             3,269
                       
    Earnings (loss) per common share                  
    Basic $               0.73   $               0.79   $              (6.05 )   $               1.00   $               0.21
    Diluted $               0.73   $               0.78   $              (6.05 )   $               1.00   $               0.21
    Weighted average basic common shares outstanding                20,797                  20,776                  15,829                    15,763                  15,723
    Weighted average diluted common shares outstanding                20,849                  20,851                  15,829                    15,781                  15,774
    Dividends paid per common share $            0.2425   $            0.2425   $            0.2425     $            0.2425   $            0.2425
                                   

    MIDWESTONE FINANCIAL GROUP, INC.
    FINANCIAL STATISTICS

      As of or for the Three Months Ended
      March 31,   December 31,   March 31,
    (Dollars in thousands, except per share amounts)   2025       2024       2024  
    Earnings:          
    Net interest income $ 47,439     $ 48,938     $ 34,731  
    Noninterest income   10,136       10,837       9,750  
    Total revenue, net of interest expense   57,575       59,775       44,481  
    Credit loss expense   1,687       1,291       4,689  
    Noninterest expense   36,293       37,372       35,565  
    Income before income tax expense   19,595       21,112       4,227  
    Income tax expense   4,457       4,782       958  
    Net income $ 15,138     $ 16,330     $ 3,269  
    Adjusted earnings(1) $ 15,301     $ 16,112     $ 4,504  
    Per Share Data:          
    Diluted earnings $ 0.73     $ 0.78     $ 0.21  
    Adjusted earnings(1)   0.73       0.77       0.29  
    Book value   27.85       26.94       33.53  
    Tangible book value(1)   23.36       22.37       27.14  
    Ending Balance Sheet:          
    Total assets $ 6,254,394     $ 6,236,329     $ 6,748,015  
    Loans held for investment, net of unearned income   4,304,184       4,315,627       4,414,646  
    Total securities   1,305,530       1,328,433       1,862,169  
    Total deposits   5,489,142       5,477,982       5,585,236  
    Short-term borrowings   1,482       3,186       422,988  
    Long-term debt   111,398       113,376       122,066  
    Total shareholders’ equity   579,625       559,696       528,040  
    Average Balance Sheet:          
    Average total assets $ 6,168,546     $ 6,279,975     $ 6,635,379  
    Average total loans   4,290,710       4,307,583       4,298,216  
    Average total deposits   5,398,819       5,464,900       5,481,114  
    Financial Ratios:          
    Return on average assets   1.00 %     1.03 %     0.20 %
    Return on average equity   10.74 %     11.53 %     2.49 %
    Return on average tangible equity(1)   13.75 %     14.80 %     4.18 %
    Efficiency ratio(1)   59.38 %     59.06 %     71.28 %
    Net interest margin, tax equivalent(1)   3.44 %     3.43 %     2.33 %
    Loans to deposits ratio   78.41 %     78.78 %     79.04 %
    CET1 Ratio   10.97 %     10.73 %     8.98 %
    Common equity ratio   9.27 %     8.97 %     7.83 %
    Tangible common equity ratio(1)   7.89 %     7.57 %     6.43 %
    Credit Risk Profile:          
    Total nonperforming loans $ 17,470     $ 21,847     $ 29,267  
    Nonperforming loans ratio   0.41 %     0.51 %     0.66 %
    Total nonperforming assets $ 20,889     $ 25,184     $ 33,164  
    Nonperforming assets ratio   0.33 %     0.40 %     0.49 %
    Net charge-offs $ 3,087     $ 691     $ 189  
    Net charge-off ratio   0.29 %     0.06 %     0.02 %
    Allowance for credit losses $ 53,900     $ 55,200     $ 55,900  
    Allowance for credit losses ratio   1.25 %     1.28 %     1.27 %
    Allowance for credit losses to nonaccrual ratio   309.47 %     254.32 %     197.53 %
               
    (1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.
     

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

      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
    (Dollars in thousands) Average
    Balance    		   Interest
    Income/
    Expense    		   Average
    Yield/
    Cost    		   Average
    Balance    		   Interest
    Income/
    Expense    		   Average
    Yield/
    Cost    		   Average Balance   Interest
    Income/
    Expense    		   Average
    Yield/
    Cost
    ASSETS                                  
    Loans, including fees (1)(2)(3) $4,290,710   $60,443   5.71%   $4,307,583   $63,443   5.86%   $4,298,216   $58,867   5.51%
    Taxable investment securities 1,207,844   13,327   4.47%   1,080,716   11,320   4.17%   1,557,603   9,460   2.44%
    Tax-exempt investment securities (2)(4) 105,563   865   3.32%   109,183   896   3.26%   328,736   2,097   2.57%
    Total securities held for investment(2) 1,313,407   14,192   4.38%   1,189,899   12,216   4.08%   1,886,339   11,557   2.46%
    Other 124,133   1,247   4.07%   309,904   3,761   4.83%   30,605   418   5.49%
    Total interest earning assets(2) $5,728,250   $75,882   5.37%   $5,807,386   $79,420   5.44%   $6,215,160   $70,842   4.58%
    Other assets 440,296           472,589           420,219        
    Total assets $6,168,546           $6,279,975           $6,635,379        
    LIABILITIES AND SHAREHOLDERS’ EQUITY                                  
    Interest checking deposits $1,240,586   $2,127   0.70%   $1,252,481   $2,205   0.70%   $1,301,470   $2,890   0.89%
    Money market deposits 1,002,743   6,333   2.56%   1,046,571   7,197   2.74%   1,102,543   8,065   2.94%
    Savings deposits 835,731   3,057   1.48%   799,931   3,158   1.57%   694,143   2,047   1.19%
    Time deposits 1,397,595   13,967   4.05%   1,410,542   14,764   4.16%   1,446,981   14,724   4.09%
    Total interest bearing deposits 4,476,655   25,484   2.31%   4,509,525   27,324   2.41%   4,545,137   27,726   2.45%
    Securities sold under agreements to repurchase 2,705   5   0.75%   3,640   8   0.87%   5,330   11   0.83%
    Other short-term borrowings —   20   —%   6,465   107   6.58%   409,525   4,964   4.88%
    Total short-term borrowings 2,705   25   3.75%   10,105   115   4.53%   414,855   4,975   4.82%
    Long-term debt 113,364   1,791   6.41%   116,018   1,890   6.48%   123,266   2,103   6.86%
    Total borrowed funds 116,069   1,816   6.35%   126,123   2,005   6.32%   538,121   7,078   5.29%
    Total interest bearing liabilities $4,592,724   $27,300   2.41%   $4,635,648   $29,329   2.52%   $5,083,258   $34,804   2.75%
    Noninterest bearing deposits 922,164           955,375           935,977        
    Other liabilities 82,280           125,536           88,611        
    Shareholders’ equity 571,378           563,416           527,533        
    Total liabilities and shareholders’ equity $6,168,546           $6,279,975           $6,635,379        
    Net interest income(2)     $48,582           $50,091           $36,038    
    Net interest spread(2)         2.96%           2.92%           1.83%
    Net interest margin(2)         3.44%           3.43%           2.33%
                                       
    Total deposits(5) $5,398,819   $25,484   1.91%   $5,464,900   $27,324   1.99%   $5,481,114   $27,726   2.03%
    Cost of funds(6)         2.01%           2.09%           2.33%
    (1) Average balance includes nonaccrual loans.
    (2) Tax equivalent. The federal statutory tax rate utilized was 21%.
    (3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $256 thousand, $456 thousand, and $237 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Loan purchase discount accretion was $1.2 million, $2.5 million, and $1.2 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Tax equivalent adjustments were $981 thousand, $985 thousand, and $920 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The federal statutory tax rate utilized was 21%.
    (4) Interest income includes tax equivalent adjustments of $162 thousand, $168 thousand, and $387 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The federal statutory tax rate utilized was 21%.
    (5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.
    (6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.
       

    Non-GAAP Measures

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

    Tangible Common Equity/Tangible Book Value                    
    per Share/Tangible Common Equity Ratio   March 31,   December 31,   September 30,   June 30,   March 31,
    (Dollars in thousands, except per share data)     2025       2024       2024       2024       2024  
    Total shareholders’ equity   $ 579,625     $ 559,696     $ 562,238     $ 543,286     $ 528,040  
    Intangible assets, net     (93,399 )     (94,807 )     (96,257 )     (97,327 )     (100,649 )
    Tangible common equity   $ 486,226     $ 464,889     $ 465,981     $ 445,959     $ 427,391  
                         
    Total assets   $ 6,254,394     $ 6,236,329     $ 6,552,482     $ 6,581,658     $ 6,748,015  
    Intangible assets, net     (93,399 )     (94,807 )     (96,257 )     (97,327 )     (100,649 )
    Tangible assets   $ 6,160,995     $ 6,141,522     $ 6,456,225     $ 6,484,331     $ 6,647,366  
                         
    Book value per share   $ 27.85     $ 26.94     $ 27.06     $ 34.44     $ 33.53  
    Tangible book value per share(1)   $ 23.36     $ 22.37     $ 22.43     $ 28.27     $ 27.14  
    Shares outstanding     20,815,715       20,777,485       20,774,919       15,773,468       15,750,471  
                         
    Common equity ratio     9.27 %     8.97 %     8.58 %     8.25 %     7.83 %
    Tangible common equity ratio(2)     7.89 %     7.57 %     7.22 %     6.88 %     6.43 %
                                             

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

        Three Months Ended
    Return on Average Tangible Equity   March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Net income   $ 15,138     $ 16,330     $ 3,269  
    Intangible amortization, net of tax(1)     1,047       1,075       1,228  
    Tangible net income   $ 16,185     $ 17,405     $ 4,497  
                 
    Average shareholders’ equity   $ 571,378     $ 563,416     $ 527,533  
    Average intangible assets, net     (94,169 )     (95,498 )     (95,296 )
    Average tangible equity   $ 477,209     $ 467,918     $ 432,237  
                 
    Return on average equity     10.74 %     11.53 %     2.49 %
    Return on average tangible equity(2)     13.75 %     14.80 %     4.18 %
                             

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

    Net Interest Margin, Tax Equivalent/
    Core Net Interest Margin    		   Three Months Ended
      March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Net interest income   $ 47,439     $ 48,938     $ 34,731  
    Tax equivalent adjustments:            
    Loans(1)     981       985       920  
    Securities(1)     162       168       387  
    Net interest income, tax equivalent   $ 48,582     $ 50,091     $ 36,038  
    Loan purchase discount accretion     (1,166 )     (2,496 )     (1,152 )
    Core net interest income   $ 47,416     $ 47,595     $ 34,886  
                 
    Net interest margin     3.36 %     3.35 %     2.25 %
    Net interest margin, tax equivalent(2)     3.44 %     3.43 %     2.33 %
    Core net interest margin(3)     3.36 %     3.26 %     2.26 %
    Average interest earning assets   $ 5,728,250     $ 5,807,386     $ 6,215,160  
                             

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

          Three Months Ended
    Loan Yield, Tax Equivalent / Core Yield on Loans   March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Loan interest income, including fees     $ 59,462     $ 62,458     $ 57,947  
    Tax equivalent adjustment(1)       981       985       920  
    Tax equivalent loan interest income     $ 60,443     $ 63,443     $ 58,867  
    Loan purchase discount accretion       (1,166 )     (2,496 )     (1,152 )
    Core loan interest income     $ 59,277     $ 60,947     $ 57,715  
                   
    Yield on loans       5.62 %     5.77 %     5.42 %
    Yield on loans, tax equivalent(2)       5.71 %     5.86 %     5.51 %
    Core yield on loans(3)       5.60 %     5.63 %     5.40 %
    Average loans     $ 4,290,710     $ 4,307,583     $ 4,298,216  
                               

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

          Three Months Ended
    Efficiency Ratio   March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Total noninterest expense     $ 36,293     $ 37,372     $ 35,565  
    Amortization of intangibles       (1,408 )     (1,449 )     (1,637 )
    Merger-related expenses       (40 )     (31 )     (1,314 )
    Noninterest expense used for efficiency ratio     $ 34,845     $ 35,892     $ 32,614  
                   
    Net interest income, tax equivalent(1)     $ 48,582     $ 50,091     $ 36,038  
    Plus: Noninterest income       10,136       10,837       9,750  
    Less: Investment securities gains, net       33       161       36  
    Net revenues used for efficiency ratio     $ 58,685     $ 60,767     $ 45,752  
                   
    Efficiency ratio (2)       59.38 %     59.06 %     71.28 %
                               

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

          Three Months Ended
    Adjusted Earnings   March 31,   December 31,   March 31,
    (Dollars in thousands, except per share data)     2025       2024     2024  
    Net income     $         15,138     $         16,330   $           3,269  
    Less: Investment securities gains, net of tax(1)                        25                      119                      27  
    Less: Mortgage servicing rights (loss) gain, net of tax(1)                     (158 )                    122                   (276 )
    Plus: Merger-related expenses, net of tax(1)                        30                        23                    986  
    Adjusted earnings     $         15,301     $         16,112   $           4,504  
                   
    Weighted average diluted common shares outstanding                 20,849                 20,851               15,774  
                   
    Earnings per common share – diluted     $             0.73     $             0.78   $             0.21  
    Adjusted earnings per common share(2)     $             0.73     $             0.77   $             0.29  
                             

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

    Category: Earnings

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

    Source: MidWestOne Financial Group, Inc.

    Industry: Banks

    Contact:

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

    The MIL Network –

  • MIL-OSI: Glacier Bancorp, Inc. Announces Results For the Quarter and Period Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    1st Quarter 2025 Highlights:

    • Diluted earnings per share for the current quarter was $0.48 per share, a decrease of 11 percent from the prior quarter diluted earnings per share of $0.54 per share and an increase of 66 percent from the prior year first quarter diluted earnings per share of $0.29 per share.
    • Net income was $54.6 million for the current quarter, a decrease of $7.2 million, or 12 percent, from the prior quarter net income of $61.8 million and an increase of $21.9 million, or 67 percent, from the prior year first quarter net income of $32.6 million.
    • The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.04 percent, an increase of 7 basis points from the prior quarter net interest margin of 2.97 percent and an increase of 45 basis points from the prior year first quarter net interest margin of 2.59 percent.
    • Total deposits of $20.634 billion increased $87.1 million, or 2 percent annualized, during the current quarter.
    • The loan yield of 5.77 percent in the current quarter increased 5 basis points from the prior quarter loan yield of 5.72 percent and increased 31 basis points from the prior year first quarter loan yield of 5.46 percent.
    • The total earning asset yield of 4.61 percent in the current quarter increased 4 basis points from the prior quarter earning asset yield of 4.57 percent and increased 30 basis points from the prior year first quarter earning asset yield of 4.31 percent.
    • The total core deposit cost (including non-interest bearing deposits) of 1.25 percent in the current quarter decreased 4 basis point from the prior quarter total core deposit cost of 1.29 percent.
    • The total cost of funding (including non-interest bearing deposits) of 1.68 percent in the current quarter decreased 3 basis point from the prior quarter total cost of funding of 1.71 percent.
    • The Company declared a quarterly dividend of $0.33 per share. The Company has declared 160 consecutive quarterly dividends and has increased the dividend 49 times.
    • The Company announced the signing of a definitive agreement to acquire Bank of Idaho Holding Co., the bank holding company for Bank of Idaho (collectively, “BOID”) which had total assets of $1.3 billion as of March 31, 2025. This will be the Company’s 26th bank acquisition since 2000 and its 12th announced transaction in the past 10 years.

    Financial Summary  

      At or for the Three Months ended
    (Dollars in thousands, except per share and market data) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024
    Operating results          
    Net income $ 54,568     61,754     32,627  
    Basic earnings per share $ 0.48     0.54     0.29  
    Diluted earnings per share $ 0.48     0.54     0.29  
    Dividends declared per share $ 0.33     0.33     0.33  
    Market value per share          
    Closing $ 44.22     50.22     40.28  
    High $ 52.81     60.67     42.75  
    Low $ 43.18     43.70     34.74  
    Selected ratios and other data          
    Number of common stock shares outstanding   113,517,944     113,401,955     113,388,590  
    Average outstanding shares – basic   113,451,199     113,398,213     112,492,142  
    Average outstanding shares – diluted   113,546,365     113,541,026     112,554,402  
    Return on average assets (annualized)   0.80 %   0.87 %   0.47 %
    Return on average equity (annualized)   6.77 %   7.62 %   4.25 %
    Efficiency ratio   65.49 %   60.50 %   74.41 %
    Loan to deposit ratio   83.64 %   84.17 %   82.04 %
    Number of full time equivalent employees   3,457     3,441     3,438  
    Number of locations   227     227     232  
    Number of ATMs   286     284     285  
                       

    KALISPELL, Mont., April 24, 2025 (GLOBE NEWSWIRE) — Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $54.6 million for the current quarter, a decrease of $7.2 million, or 12 percent from the prior quarter net income of $61.8 million and an increase of $21.9 million, or 67 percent, from the $32.6 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.48 per share, a decrease of 11 percent from the prior quarter diluted earnings per share of $0.54 per share and an increase of 65 percent from the prior year first quarter diluted earnings per share of $0.29. “We are very pleased with the long-term positive trends we see in our Company. Deposit costs are decreasing, loan yields are increasing, and margin continues to grow,” said Randy Chesler, President and Chief Executive Officer. “While uncertainty about the economy persists, we remain optimistic about our customers’ ability to quickly adapt to a changing environment.”

    On January 13, 2025, the Company announced the signing of a definitive agreement to acquire BOID with 15 branches across eastern Idaho, Boise and eastern Washington. As of March 31, 2025, BOID had total assets of $1.3 billion, total loans of $1.1 billion and total deposits of $1.1 billion. Upon closing of the transaction, the BOID operations will join three existing Glacier Bank divisions. The Eastern Idaho operations of Bank of Idaho will join Citizens Community Bank, the Boise operations will join Mountain West Bank and the Eastern Washington operations will join Wheatland Bank. The acquisition has received all required regulatory approvals and is scheduled to close on April 30, 2025, subject to satisfaction of the remaining conditions set forth in the merger agreement and the approval by the BOID shareholders.

    Asset Summary

                  $ Change from
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Dec 31,
    2024    		   Mar 31,
    2024
    Cash and cash equivalents $ 981,485     848,408     788,660     133,077     192,825  
    Debt securities, available-for-sale   4,172,312     4,245,205     4,629,073     (72,893 )   (456,761 )
    Debt securities, held-to-maturity   3,261,575     3,294,847     3,451,583     (33,272 )   (190,008 )
    Total debt securities   7,433,887     7,540,052     8,080,656     (106,165 )   (646,769 )
    Loans receivable                  
    Residential real estate   1,850,079     1,858,929     1,752,514     (8,850 )   97,565  
    Commercial real estate   10,952,809     10,963,713     10,672,269     (10,904 )   280,540  
    Other commercial   3,121,477     3,119,535     3,030,608     1,942     90,869  
    Home equity   920,132     930,994     883,062     (10,862 )   37,070  
    Other consumer   374,021     388,678     394,049     (14,657 )   (20,028 )
    Loans receivable   17,218,518     17,261,849     16,732,502     (43,331 )   486,016  
    Allowance for credit losses   (210,400 )   (206,041 )   (198,779 )   (4,359 )   (11,621 )
    Loans receivable, net   17,008,118     17,055,808     16,533,723     (47,690 )   474,395  
    Other assets   2,435,389     2,458,719     2,419,131     (23,330 )   16,258  
    Total assets $ 27,858,879     27,902,987     27,822,170     (44,108 )   36,709  
                                   

    The Company continues to maintain a strong cash position of $981 million at March 31, 2025 which was an increase of $133 million over the prior quarter and an increase of $193 million over the prior year first quarter. Total debt securities of $7.434 billion at March 31, 2025 decreased $106 million, or 1 percent, during the current quarter and decreased $647 million, or 8 percent, from the prior year first quarter. Debt securities represented 27 percent of total assets at March 31, 2025 and December 31, 2024 compared to 29 percent at March 31, 2024.

    The loan portfolio of $17.219 billion at March 31, 2025 decreased $43 million, or 25 basis points, during the current quarter and increased $486 million, or 3 percent, from the prior year first quarter. Excluding the Rocky Mountain Bank (“RMB”) acquisition on July 19, 2024, the loan portfolio organically increased $214 million, or 1 percent, since the prior year first quarter. Excluding the RMB acquisition, the loan category with the largest dollar increase in the last twelve months was commercial real estate which increased $159 million, or 1 percent.

    Credit Quality Summary

      At or for the
    Three Months ended    		   At or for the
    Year ended    		   At or for the
    Three Months ended
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024
    Allowance for credit losses          
    Balance at beginning of period $ 206,041     192,757     192,757  
    Acquisitions   —     3     3  
    Provision for credit losses   6,154     27,179     9,091  
    Charge-offs   (3,897 )   (18,626 )   (4,295 )
    Recoveries   2,102     4,728     1,223  
    Balance at end of period $ 210,400     206,041     198,779  
    Provision for credit losses          
    Loan portfolio $ 6,154     27,179     9,091  
    Unfunded loan commitments   1,660     1,127     (842 )
    Total provision for credit losses $ 7,814     28,306     8,249  
    Other real estate owned $ 1,085     1,085     432  
    Other foreclosed assets   68     79     459  
    Accruing loans 90 days or more past due   5,289     6,177     3,796  
    Non-accrual loans   32,896     20,445     20,738  
    Total non-performing assets $ 39,338     27,786     25,425  
    Non-performing assets as a percentage of subsidiary assets   0.14 %   0.10 %   0.09 %
    Allowance for credit losses as a percentage of non-performing loans   551 %   774 %   810 %
    Allowance for credit losses as a percentage of total loans   1.22 %   1.19 %   1.19 %
    Net charge-offs as a percentage of total loans   0.01 %   0.08 %   0.02 %
    Accruing loans 30-89 days past due $ 46,458     32,228     62,423  
    U.S. government guarantees included in non-performing assets $ 685     748     1,490  
                       

    Non-performing assets as a percentage of subsidiary assets at March 31, 2025 was 0.14 percent compared to 0.10 percent in the prior quarter and 0.09 percent in the prior year first quarter. Non-performing assets of $39.3 million at March 31, 2025 increased $11.6 million, or 42 percent, over the prior quarter and increased $13.9 million, or 55 percent, over the prior year first quarter. The increase in the non-performing loans in the current quarter was primarily attributable to a single credit relationship.

    Early stage delinquencies (accruing loans 30-89 days past due) as a percentage of loans at March 31, 2025 were 0.27 percent compared to 0.19 percent for the prior quarter end and 0.37 percent for the prior year first quarter. Early stage delinquencies of $46.5 million at March 31, 2025 increased $14.2 million from the prior quarter and decreased $16.0 million from prior year first quarter.

    The current quarter credit loss expense of $7.8 million included $6.2 million of provision for credit losses on loans and $1.7 million of provision for credit losses on unfunded commitments.

    The allowance for credit losses (“ACL”) on loans as a percentage of total loans outstanding at March 31, 2025 was 1.22 percent compared to 1.19 percent at year end and the prior year first quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts, actual results, and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

    Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio

    (Dollars in thousands) Provision for
    Credit Losses Loans    		   Net Charge-Offs   ACL
    as a Percent
    of Loans    		   Accruing
    Loans 30-89
    Days Past Due
    as a Percent of
    Loans    		   Non-Performing
    Assets to
    Total Subsidiary
    Assets
    First quarter 2025 $ 6,154   $ 1,795   1.22 %   0.27 %   0.14 %
    Fourth quarter 2024   6,041     5,170   1.19 %   0.19 %   0.10 %
    Third quarter 2024   6,981     2,766   1.19 %   0.33 %   0.10 %
    Second quarter 2024   5,066     2,890   1.19 %   0.29 %   0.06 %
    First quarter 2024   9,091     3,072   1.19 %   0.37 %   0.09 %
    Fourth quarter 2023   4,181     3,695   1.19 %   0.31 %   0.09 %
    Third quarter 2023   5,095     2,209   1.19 %   0.09 %   0.15 %
    Second quarter 2023   5,254     2,473   1.19 %   0.16 %   0.12 %
                                 

    Net charge-offs for the current quarter were $1.8 million compared to $5.2 million in the prior quarter and $3.1 million for the prior year first quarter. The current quarter net charge-offs included $1.9 million in deposit overdraft net charge-offs and $78 thousand of net loan recoveries.

    Supplemental information regarding credit quality and identification of the Company’s loan portfolio based on the regulatory classification of loans is provided in the exhibits at the end of this press release. The regulatory classification of loans is based primarily on collateral type while the Company’s loan segments presented herein are based on the purpose of the loan.

    Liability Summary

                  $ Change from
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Dec 31,
    2024    		   Mar 31,
    2024
    Deposits                  
    Non-interest bearing deposits $ 6,100,548   6,136,709   6,055,069   (36,161 )   45,479  
    NOW and DDA accounts   5,676,177   5,543,512   5,376,605   132,665     299,572  
    Savings accounts   2,896,378   2,845,124   2,949,908   51,254     (53,530 )
    Money market deposit accounts   2,816,874   2,878,213   3,002,942   (61,339 )   (186,068 )
    Certificate accounts   3,140,333   3,139,821   3,039,190   512     101,143  
    Core deposits, total   20,630,310   20,543,379   20,423,714   86,931     206,596  
    Wholesale deposits   3,740   3,615   3,809   125     (69 )
    Deposits, total   20,634,050   20,546,994   20,427,523   87,056     206,527  
    Repurchase agreements   1,849,070   1,777,475   1,540,008   71,595     309,062  
    Deposits and repurchase agreements, total   22,483,120   22,324,469   21,967,531   158,651     515,589  
    Federal Home Loan Bank advances   1,520,000   1,800,000   2,140,157   (280,000 )   (620,157 )
    Other borrowed funds   82,443   83,341   88,814   (898 )   (6,371 )
    Subordinated debentures   133,145   133,105   132,984   40     161  
    Other liabilities   352,563   338,218   381,977   14,345     (29,414 )
    Total liabilities $ 24,571,271   24,679,133   24,711,463   (107,862 )   (140,192 )
                             

    Total deposits of $20.634 billion at March 31, 2025 increased $87.1 million, or 2 percent annualized, from the prior quarter and increased $207 million, or 1 percent, from the prior year first quarter. Total repurchase agreements of $1.849 billion at March 31, 2025 increased $71.6 million, or 4 percent, from the prior quarter and increased $309 million, or 20 percent, from the prior year first quarter. Total deposits organically decreased $190 million, or 1 percent, from the prior year first quarter and total deposits and repurchase agreements organically increased $115 million, or 52 basis points, from the prior year first quarter. Non-interest bearing deposits represented 30 percent of total deposits at March 31, 2025, December 31, 2024 and March 31, 2024. Federal Home Loan Bank (“FHLB”) advances of $1.520 billion decreased $280 million, or 16 percent, from the prior quarter and decreased $620 million, or 29 percent, from the prior year first quarter.

    Stockholders’ Equity Summary

                  $ Change from
    (Dollars in thousands, except per share data) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Dec 31,
    2024    		   Mar 31,
    2024
    Common equity $ 3,550,719     3,533,150     3,483,012     17,569   67,707  
    Accumulated other comprehensive loss   (263,111 )   (309,296 )   (372,305 )   46,185   109,194  
    Total stockholders’ equity   3,287,608     3,223,854     3,110,707     63,754   176,901  
    Goodwill and intangibles, net   (1,099,229 )   (1,102,500 )   (1,069,808 )   3,271   (29,421 )
    Tangible stockholders’ equity $ 2,188,379     2,121,354     2,040,899     67,025   147,480  
    Stockholders’ equity to total assets   11.80 %   11.55 %   11.18 %          
    Tangible stockholders’ equity to total tangible assets   8.18 %   7.92 %   7.63 %          
    Book value per common share $ 28.96     28.43     27.43     0.53   1.53  
    Tangible book value per common share $ 19.28     18.71     18.00      0.57   1.28  
                                 

    Tangible stockholders’ equity of $2.188 billion at March 31, 2025 increased $67.0 million, or 3 percent, compared to the prior quarter and was primarily the result of a decrease in unrealized loss on the available-for-sale debt securities and earnings retention. Tangible stockholders’ equity at March 31, 2025 increased $147 million, or 7 percent, compared to the prior year first quarter and was primarily due to the decrease in unrealized loss on the available-for-sale debt securities and earnings retention. The increase was partially offset by the increase in goodwill and core deposits associated with the RMB acquisition. Tangible book value per common share of $19.28 at the current quarter end increased $0.57 per share, or 3 percent, from the prior quarter and increased $1.28 per share, or 7 percent, from the prior year first quarter.

    Cash Dividends
    On March 26, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable April 17, 2025 to shareholders of record on April 8, 2025. The dividend was the Company’s 160th consecutive regular dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

    Operating Results for Three Months Ended March 31, 2025 
    Compared to December 31, 2024, and March 31, 2024

    Income Summary

      Three Months ended   $ Change from
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Dec 31,
    2024    		   Mar 31,
    2024
    Net interest income                  
    Interest income $ 289,925     297,036     279,402     (7,111 )   10,523  
    Interest expense   99,946     105,593     112,922     (5,647 )   (12,976 )
    Total net interest income   189,979     191,443     166,480     (1,464 )   23,499  
                       
    Non-interest income                  
    Service charges and other fees   18,818     20,322     18,563     (1,504 )   255  
    Miscellaneous loan fees and charges   4,664     4,541     4,362     123     302  
    Gain on sale of loans   4,311     3,926     3,362     385     949  
    Gain on sale of securities   —     —     16     —     (16 )
    Other income   4,849     2,760     3,686     2,089     1,163  
    Total non-interest income   32,642     31,549     29,989     1,093     2,653  
    Total income $ 222,621     222,992     196,469     (371 )   26,152  
    Net interest margin (tax-equivalent)   3.04 %   2.97 %   2.59 %        
                               

    Net Interest Income
    Net interest income of $190 million for the current quarter decreased $1.5 million, or 1 percent, from the prior quarter net interest income of $191 million and increased $23.5 million, or 14 percent, from the prior year first quarter net interest income of $166 million. The current quarter interest income of $290 million decreased $7.1 million, or 2 percent, over the prior quarter and was primarily driven by fewer days in the current quarter coupled with decreased average interest-bearing cash balances. The current quarter interest income increased $10.5 million, or 4 percent, over the prior year first quarter primarily due to the increase in the loan yields and the increase in average balances of the loan portfolio. The loan yield of 5.77 percent in the current quarter increased 5 basis points from the prior quarter loan yield of 5.72 percent and increased 31 basis points from the prior year first quarter loan yield of 5.46 percent.

    The current quarter interest expense of $99.9 million decreased $5.6 million, or 5 percent, over the prior quarter and was primarily attributable to a decrease in deposit costs. The current quarter interest expense decreased $13.0 million, or 11 percent, over the prior year first quarter and was primarily the result of lower average wholesale borrowings and a decrease in deposit costs. Core deposit cost (including non-interest bearing deposits) was 1.25 percent for the current quarter compared to 1.29 percent in the prior quarter and 1.34 percent for the prior year first quarter. The total cost of funding (including non-interest bearing deposits) of 1.68 percent in the current quarter decreased 3 basis points from the prior quarter and decreased 16 basis point from the prior year first quarter.

    The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.04 percent, an increase of 7 basis points from the prior quarter net interest margin of 2.97 percent and was primarily driven by an increase in loan yields and a decrease in total cost of funding. The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was an increase of 45 basis points from the prior year first quarter net interest margin of 2.59 percent and was primarily driven by the increase in loan yields and the decrease in core deposit cost. Core net interest margin excludes the impact from discount accretion and non-accrual interest. Excluding the 5 basis points from discount accretion, the core net interest margin was 2.99 percent in the current quarter compared to 2.97 percent in the prior quarter and 2.59 in the prior year first quarter. “The Company’s net interest margin increased for the fifth consecutive quarter,” said Ron Copher, Chief Financial Officer. “The continued increase in loan yields and decrease in the deposit costs contributed to the 7 basis points increase in the net interest margin as it expanded to 3.04 percent in the current quarter.”

    Non-interest Income
    Non-interest income for the current quarter totaled $32.6 million, which was an increase of $1.1 million, or 3 percent, over the prior quarter and an increase of $2.7 million, or 9 percent, over the prior year first quarter. Service charges and other fees of $18.8 million for the current quarter decreased $1.5 million, or 7 percent, compared to the prior quarter and increased $255 thousand, or 1 percent, compared to the prior year first quarter. Gain on the sale of residential loans of $4.3 million for the current quarter increased $385 thousand, or 10 percent, compared to the prior quarter and increased $949 thousand, or 28 percent, from the prior year first quarter. Other income of $4.8 million increased $2.1 million, or 75 percent, over the prior quarter primarily due to other income of $1.1 million related to bank owned life insurance proceeds coupled with an increase in income from equity investments and other one-time adjustments. Other income increased $1.2 million, or 32 percent, over the prior year first quarter primarily due to the current quarter proceeds from bank owned life insurance.

    Non-interest Expense Summary

      Three Months ended   $ Change from
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Dec 31,
    2024    		   Mar 31,
    2024
    Compensation and employee benefits $ 91,443   81,600   85,789   9,843     5,654  
    Occupancy and equipment   12,294   11,589   11,883   705     411  
    Advertising and promotions   4,144   3,725   3,983   419     161  
    Data processing   9,138   9,145   9,159   (7 )   (21 )
    Other real estate owned and foreclosed assets   63   30   25   33     38  
    Regulatory assessments and insurance   5,534   5,890   7,761   (356 )   (2,227 )
    Intangibles amortization   3,270   3,613   2,760   (343 )   510  
    Other expenses   25,432   25,373   30,483   59     (5,051 )
    Total non-interest expense $ 151,318   140,965   151,843   10,353     (525 )
                             

    Total non-interest expense of $151 million for the current quarter increased $10.4 million, or 7 percent, over the prior quarter and decreased $525 thousand, or 35 basis points, over the prior year first quarter. Compensation and employee benefits of $91.4 million increased by $9.8 million, or 12 percent, over the prior quarter and was primarily attributable to increased performance-related compensation. Compensation and employee benefits increased $5.6 million, or 7 percent, from the prior year first quarter and was primarily driven by annual salary increases and increases in staffing levels from prior year acquisitions. Regulatory assessment and insurance expense of $5.5 million decreased $2.2 million from the prior year first quarter as a result of adjustments to the FDIC special assessment.

    Other expenses of $25.4 million increased $59 thousand, or 23 basis points, from the prior quarter. Other expenses decreased $5.1 million, or 17 percent, from the prior year first quarter and was primarily driven by a decrease in acquisition-related expense. Acquisition-related expense was $587 thousand in the current quarter compared to $491 thousand in the prior quarter and $5.7 million in the prior year first quarter. The current quarter other expenses included $1.2 million of gain from the sale of a former branch facility compared to a $2.1 million gain in the prior quarter and a $989 thousand gain in the prior year first quarter.

    Federal and State Income Tax Expense

    Tax expense during the first quarter of 2025 was $8.9 million, a decrease of $2.8 million, or 24 percent, compared to the prior quarter and an increase of $5.2 million, or 138 percent, from the prior year first quarter. The effective tax rate in the current quarter was 14.1 percent compared to 16.0 percent in the prior quarter. The lower tax expense and lower effective tax rate in the current quarter compared to the prior quarter was the result of a combination of higher federal income tax credits and a decrease in income before income tax expense.

    Efficiency Ratio
    The efficiency ratio was 65.49 percent in the current quarter compared to 60.50 percent in the prior quarter and 74.41 percent in the prior year first quarter. The increase from the prior quarter was principally driven by the decrease in net interest income combined with an increase in non-interest expense. The decrease from the prior year first quarter was principally due to the increase in net interest income.

    Forward-Looking Statements  
    This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “will,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are based on assumptions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements, including those made in this news release:

    • risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
    • changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;
    • legislative or regulatory changes, including increased FDIC insurance rates and assessments, changes in the review and regulation of bank mergers, or increased banking and consumer protection regulations, that may adversely affect the Company’s business and strategies;
    • risks related to overall economic conditions, including the impact on the economy of an uncertain interest rate environment, inflationary pressures and the potential for significant changes in economic and trade policies in the new administration;
    • risks to the Company’s business and the business of the Company’s customers arising from current or future tariffs or other trade restrictions, labor or supply chain issues, change in labor force, or geopolitical instability, including the wars in Ukraine and the Middle East;
    • risks associated with the Company’s ability to negotiate, complete, and successfully integrate any pending or future acquisitions;
    • costs or difficulties related to the completion and integration of pending or future acquisitions;
    • impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;
    • reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;
    • deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company’s ability to obtain and maintain customers;
    • changes in the competitive landscape, including as may result from new market entrants or further consolidation in the financial services industry, resulting in the creation of larger competitors with greater financial resources;
    • risks presented by public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow through acquisitions;
    • risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;
    • material failure, potential interruption or breach in security of the Company’s systems or changes in technology which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;
    • risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;
    • success in managing risks involved in any of the foregoing; and
    • effects of any reputational damage to the Company resulting from any of the foregoing.

    The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.

    Conference Call Information
    A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, April 25, 2025. Please note that our conference call host no longer offers a general dial-in number. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register-conf.media-server.com/register/BI3016c4b5b4bd4b0aac8f022e74f4c1d4. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/ejk9q5pb. 

    About Glacier Bancorp, Inc.
    Glacier Bancorp, Inc. (NYSE: GBCI), a member of the Russell 2000® and the S&P MidCap 400® indices, is the parent company for Glacier Bank and its Bank divisions located across its eight state Western U.S. footprint: Altabank (American Fork, UT), Bank of the San Juans (Durango, CO), Citizens Community Bank (Pocatello, ID), Collegiate Peaks Bank (Buena Vista, CO), First Bank of Montana (Lewistown, MT), First Bank of Wyoming (Powell, WY), First Community Bank Utah (Layton, UT), First Security Bank (Bozeman, MT), First Security Bank of Missoula (Missoula, MT), First State Bank (Wheatland, WY), Glacier Bank (Kalispell, MT), Heritage Bank of Nevada (Reno, NV), Mountain West Bank (Coeur d’Alene, ID), The Foothills Bank (Yuma, AZ), Valley Bank (Helena, MT), Western Security Bank (Billings, MT), and Wheatland Bank (Spokane, WA).

    CONTACT: Randall M. Chesler, CEO
    (406) 751-4722
    Ron J. Copher, CFO
    (406) 751-7706
    Glacier Bancorp, Inc.
    Unaudited Condensed Consolidated Statements of Financial Condition
               
    (Dollars in thousands, except per share data) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024
    Assets          
    Cash on hand and in banks $ 322,253     268,746     232,064  
    Interest bearing cash deposits   659,232     579,662     556,596  
    Cash and cash equivalents   981,485     848,408     788,660  
    Debt securities, available-for-sale   4,172,312     4,245,205     4,629,073  
    Debt securities, held-to-maturity   3,261,575     3,294,847     3,451,583  
    Total debt securities   7,433,887     7,540,052     8,080,656  
    Loans held for sale, at fair value   40,523     33,060     27,035  
    Loans receivable   17,218,518     17,261,849     16,732,502  
    Allowance for credit losses   (210,400 )   (206,041 )   (198,779 )
    Loans receivable, net   17,008,118     17,055,808     16,533,723  
    Premises and equipment, net   411,095     411,968     379,826  
    Right-of-use assets, net   54,441     56,252     63,447  
    Other real estate owned and foreclosed assets   1,153     1,164     891  
    Accrued interest receivable   103,992     99,262     106,063  
    Deferred tax asset   122,942     138,955     161,327  
    Intangibles, net   47,911     51,182     46,046  
    Goodwill   1,051,318     1,051,318     1,023,762  
    Non-marketable equity securities   88,134     99,669     111,129  
    Bank-owned life insurance   191,044     189,849     186,625  
    Other assets   322,836     326,040     312,980  
    Total assets $ 27,858,879     27,902,987     27,822,170  
    Liabilities          
    Non-interest bearing deposits $ 6,100,548     6,136,709     6,055,069  
    Interest bearing deposits   14,533,502     14,410,285     14,372,454  
    Securities sold under agreements to repurchase   1,849,070     1,777,475     1,540,008  
    FHLB advances   1,520,000     1,800,000     2,140,157  
    Other borrowed funds   82,443     83,341     88,814  
    Subordinated debentures   133,145     133,105     132,984  
    Accrued interest payable   30,231     33,626     32,584  
    Other liabilities   322,332     304,592     349,393  
    Total liabilities   24,571,271     24,679,133     24,711,463  
    Commitments and Contingent Liabilities   —     —     —  
    Stockholders’ Equity          
    Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding   —     —     —  
    Common stock, $0.01 par value per share, 234,000,000 shares authorized   1,135     1,134     1,134  
    Paid-in capital   2,449,311     2,448,758     2,443,584  
    Retained earnings – substantially restricted   1,100,273     1,083,258     1,038,294  
    Accumulated other comprehensive loss   (263,111 )   (309,296 )   (372,305 )
    Total stockholders’ equity   3,287,608     3,223,854     3,110,707  
    Total liabilities and stockholders’ equity $ 27,858,879     27,902,987     27,822,170  
                       
    Glacier Bancorp, Inc.
    Unaudited Condensed Consolidated Statements of Operations
     
      Three Months ended
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024
    Interest Income          
    Investment securities $ 45,646   50,381   56,218
    Residential real estate loans   24,275   23,960   20,764
    Commercial loans   197,388   199,260   181,472
    Consumer and other loans   22,616   23,435   20,948
    Total interest income   289,925   297,036   279,402
    Interest Expense          
    Deposits   62,865   67,079   67,196
    Securities sold under agreements to repurchase   13,733   14,822   12,598
    Federal Home Loan Bank advances   20,719   21,848   4,249
    FRB Bank Term Funding   —   —   27,097
    Other borrowed funds   402   348   344
    Subordinated debentures   2,227   1,496   1,438
    Total interest expense   99,946   105,593   112,922
    Net Interest Income   189,979   191,443   166,480
    Provision for credit losses   7,814   8,534   8,249
    Net interest income after provision for credit losses   182,165   182,909   158,231
    Non-Interest Income          
    Service charges and other fees   18,818   20,322   18,563
    Miscellaneous loan fees and charges   4,664   4,541   4,362
    Gain on sale of loans   4,311   3,926   3,362
    Gain on sale of securities   —   —   16
    Other income   4,849   2,760   3,686
    Total non-interest income   32,642   31,549   29,989
    Non-Interest Expense          
    Compensation and employee benefits   91,443   81,600   85,789
    Occupancy and equipment   12,294   11,589   11,883
    Advertising and promotions   4,144   3,725   3,983
    Data processing   9,138   9,145   9,159
    Other real estate owned and foreclosed assets   63   30   25
    Regulatory assessments and insurance   5,534   5,890   7,761
    Intangibles amortization   3,270   3,613   2,760
    Other expenses   25,432   25,373   30,483
    Total non-interest expense   151,318   140,965   151,843
    Income Before Income Taxes   63,489   73,493   36,377
    Federal and state income tax expense   8,921   11,739   3,750
    Net Income $ 54,568   61,754   32,627
                 
    Glacier Bancorp, Inc.
    Average Balance Sheets
       
      Three Months ended
      March 31, 2025   December 31, 2024
    (Dollars in thousands) Average
    Balance    		   Interest &
    Dividends    		   Average
    Yield/
    Rate    		   Average
    Balance    		   Interest &
    Dividends    		   Average
    Yield/
    Rate
    Assets                      
    Residential real estate loans $ 1,885,497   $ 24,275   5.15 %   $ 1,885,146   $ 23,960   5.08 %
    Commercial loans 1   14,091,210     198,921   5.73 %     14,059,864     200,956   5.69 %
    Consumer and other loans   1,302,687     22,616   7.04 %     1,324,341     23,435   7.04 %
    Total loans 2   17,279,394     245,812   5.77 %     17,269,351     248,351   5.72 %
    Tax-exempt debt securities 3   1,604,851     13,936   3.47 %     1,615,474     14,501   3.59 %
    Taxable debt securities 4, 5   6,946,562     33,598   1.93 %     7,314,265     38,189   2.09 %
    Total earning assets   25,830,807     293,346   4.61 %     26,199,090     301,041   4.57 %
    Goodwill and intangibles   1,100,801             1,104,362        
    Non-earning assets   847,855             888,404        
    Total assets $ 27,779,463           $ 28,191,856        
    Liabilities                      
    Non-interest bearing deposits $ 5,989,490   $ —   — %   $ 6,343,443   $ —   — %
    NOW and DDA accounts   5,525,976     15,065   1.11 %     5,491,451     15,768   1.14 %
    Savings accounts   2,861,675     5,159   0.73 %     2,824,126     5,316   0.75 %
    Money market deposit accounts   2,849,470     13,526   1.93 %     2,878,415     14,232   1.97 %
    Certificate accounts   3,152,198     29,075   3.74 %     3,174,923     31,716   3.97 %
    Total core deposits   20,378,809     62,825   1.25 %     20,712,358     67,032   1.29 %
    Wholesale deposits 6   3,600     40   4.53 %     3,654     47   4.95 %
    Repurchase agreements   1,842,773     13,733   3.02 %     1,866,705     14,821   3.16 %
    FHLB advances   1,744,000     20,719   4.75 %     1,800,000     21,848   4.75 %
    Subordinated debentures and other borrowed funds   216,073     2,629   4.94 %     216,874     1,845   3.38 %
    Total funding liabilities   24,185,255     99,946   1.68 %     24,599,591     105,593   1.71 %
    Other liabilities   326,764             369,700        
    Total liabilities   24,512,019             24,969,291        
    Stockholders’ Equity                      
    Stockholders’ equity   3,267,444             3,222,565        
    Total liabilities and stockholders’ equity $ 27,779,463           $ 28,191,856        
    Net interest income (tax-equivalent)     $ 193,400           $ 195,448    
    Net interest spread (tax-equivalent)         2.93 %           2.86 %
    Net interest margin (tax-equivalent)         3.04 %           2.97 %

    ______________________________

    1 Includes tax effect of $1.5 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2025 and December 31, 2024, respectively.
    2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
    3 Includes tax effect of $1.7 million and $2.1 million on tax-exempt debt securities income for the three months ended March 31, 2025 and December 31, 2024, respectively.
    4 Includes interest income of $6.1 million and $9.2 million on average interest-bearing cash balances of $559.5 million and $759.7 million for the three months ended March 31, 2025 and December 31, 2024, respectively.
    5 Includes tax effect of $150 thousand and $203 thousand on federal income tax credits for the three months ended March 31, 2025 and December 31, 2024, respectively.
    6 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
       
    Glacier Bancorp, Inc.
    Average Balance Sheets (continued)
       
      Three Months ended
      March 31, 2025   March 31, 2024
    (Dollars in thousands) Average
    Balance    		   Interest &
    Dividends    		   Average
    Yield/
    Rate    		   Average
    Balance    		   Interest &
    Dividends    		   Average
    Yield/
    Rate
    Assets                      
    Residential real estate loans $ 1,885,497   $ 24,275   5.15 %   $ 1,747,184   $ 20,764   4.75 %
    Commercial loans 1   14,091,210     198,921   5.73 %     13,513,426     183,045   5.45 %
    Consumer and other loans   1,302,687     22,616   7.04 %     1,283,388     20,948   6.56 %
    Total loans 2   17,279,394     245,812   5.77 %     16,543,998     224,757   5.46 %
    Tax-exempt debt securities 3   1,604,851     13,936   3.47 %     1,720,370     15,157   3.52 %
    Taxable debt securities 4, 5   6,946,562     33,598   1.93 %     8,176,974     43,477   2.13 %
    Total earning assets   25,830,807     293,346   4.61 %     26,441,342     283,391   4.31 %
    Goodwill and intangibles   1,100,801             1,051,954        
    Non-earning assets   847,855             611,550        
    Total assets $ 27,779,463           $ 28,104,846        
    Liabilities                      
    Non-interest bearing deposits $ 5,989,490   $ —   — %   $ 5,966,546   $ —   — %
    NOW and DDA accounts   5,525,976     15,065   1.11 %     5,275,703     15,918   1.21 %
    Savings accounts   2,861,675     5,159   0.73 %     2,900,649     5,655   0.78 %
    Money market deposit accounts   2,849,470     13,526   1.93 %     2,948,294     14,393   1.96 %
    Certificate accounts   3,152,198     29,075   3.74 %     3,000,713     31,175   4.18 %
    Total core deposits   20,378,809     62,825   1.25 %     20,091,905     67,141   1.34 %
    Wholesale deposits 6   3,600     40   4.53 %     3,965     55   5.50 %
    Repurchase agreements   1,842,773     13,733   3.02 %     1,513,397     12,598   3.35 %
    FHLB advances   1,744,000     20,719   4.75 %     350,754     4,249   4.79 %
    FRB Bank Term Funding   —     —   — %     2,483,077     27,097   4.39 %
    Subordinated debentures and other borrowed funds   216,073     2,629   4.94 %     218,271     1,782   3.28 %
    Total funding liabilities   24,185,255     99,946   1.68 %     24,661,369     112,922   1.84 %
    Other liabilities   326,764             356,554        
    Total liabilities   24,512,019             25,017,923        
    Stockholders’ Equity                      
    Stockholders’ equity   3,267,444             3,086,923        
    Total liabilities and stockholders’ equity $ 27,779,463           $ 28,104,846        
    Net interest income (tax-equivalent)     $ 193,400           $ 170,469    
    Net interest spread (tax-equivalent)         2.93 %           2.47 %
    Net interest margin (tax-equivalent)         3.04 %           2.59 %

    ______________________________

    1 Includes tax effect of $1.5 million and $1.6 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2025 and 2024, respectively.
    2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
    3 Includes tax effect of $1.7 million and $2.2 million on tax-exempt debt securities income for the three months ended March 31, 2025 and 2024, respectively.
    4 Includes interest income of $6.1 million and $15.3 million on average interest-bearing cash balances of $559.5 million and $1.12 billion for the three months ended March 31, 2025 and 2024, respectively.
    5 Includes tax effect of $150 thousand and $215 thousand on federal income tax credits for the three months ended March 31, 2025 and 2024, respectively.
    6 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
       

    Glacier Bancorp, Inc.
    Loan Portfolio by Regulatory Classification

      Loans Receivable, by Loan Type   % Change from
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Dec 31,
    2024    		   Mar 31,
    2024
    Custom and owner occupied construction $ 233,584     $ 242,844     $ 273,835     (4)%   (15)%
    Pre-sold and spec construction   200,921       191,926       223,294     5 %   (10)%
    Total residential construction   434,505       434,770       497,129     — %   (13)%
    Land development   177,448       197,369       215,828     (10)%   (18)%
    Consumer land or lots   197,553       187,024       188,635     6 %   5 %
    Unimproved land   115,528       113,532       103,032     2 %   12 %
    Developed lots for operative builders   64,782       61,661       47,591     5 %   36 %
    Commercial lots   95,574       99,243       92,748     (4)%   3 %
    Other construction   714,151       693,461       915,782     3 %   (22)%
    Total land, lot, and other construction   1,365,036       1,352,290       1,563,616     1 %   (13)%
    Owner occupied   3,182,589       3,197,138       3,057,348     — %   4 %
    Non-owner occupied   4,054,107       4,053,996       3,920,696     — %   3 %
    Total commercial real estate   7,236,696       7,251,134       6,978,044     — %   4 %
    Commercial and industrial   1,392,365       1,395,997       1,371,201     — %   2 %
    Agriculture   1,016,081       1,024,520       929,420     (1)%   9 %
    First lien   2,499,494       2,481,918       2,276,638     1 %   10 %
    Junior lien   85,343       76,303       51,579     12 %   65 %
    Total 1-4 family   2,584,837       2,558,221       2,328,217     1 %   11 %
    Multifamily residential   874,071       895,242       881,117     (2)%   (1)%
    Home equity lines of credit   989,043       1,005,783       947,652     (2)%   4 %
    Other consumer   188,388       209,457       223,566     (10)%   (16)%
    Total consumer   1,177,431       1,215,240       1,171,218     (3)%   1 %
    States and political subdivisions   1,001,058       983,601       848,454     2 %   18 %
    Other   176,961       183,894       191,121     (4)%   (7)%
    Total loans receivable, including loans held for sale   17,259,041       17,294,909       16,759,537     — %   3 %
    Less loans held for sale 1   (40,523 )     (33,060 )     (27,035 )   23 %   50 %
    Total loans receivable $ 17,218,518     $ 17,261,849     $ 16,732,502     — %   3 %

    ______________________________

    1 Loans held for sale are primarily first lien 1-4 family loans.
       
    Glacier Bancorp, Inc.
    Credit Quality Summary by Regulatory Classification
                   
       

    Non-performing Assets, by Loan Type

    		   Non-
    Accrual
    Loans    		   Accruing
    Loans 90
    Days
    or More Past
    Due    		   Other real estate
    owned and foreclosed assets
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Mar 31,
    2025    		   Mar 31,
    2025    		   Mar 31,
    2025
    Custom and owner occupied construction $ 194   198   210   194   —   —
    Pre-sold and spec construction   2,896   2,132   1,049   2,133   763   —
    Total residential construction   3,090   2,330   1,259   2,327   763   —
    Land development   935   966   28   935   —   —
    Consumer land or lots   173   78   144   173   —   —
    Developed lots for operative builders   531   531   608   —   531   —
    Commercial lots   47   47   2,205   —   47   —
    Total land, lot and other construction   1,686   1,622   2,985   1,108   578   —
    Owner occupied   3,601   2,979   1,501   3,073   96   432
    Non-owner occupied   2,235   2,235   8,853   1,582   —   653
    Total commercial real estate   5,836   5,214   10,354   4,655   96   1,085
    Commercial and Industrial   12,367   2,069   1,698   11,640   727   —
    Agriculture   2,382   2,335   2,855   2,090   292   —
    First lien   8,752   9,053   2,930   6,796   1,956   —
    Junior lien   296   315   69   296   —   —
    Total 1-4 family   9,048   9,368   2,999   7,092   1,956   —
    Multifamily residential   400   389   395   400   —   —
    Home equity lines of credit   3,479   3,465   1,892   2,726   753   —
    Other consumer   1,003   955   927   858   77   68
    Total consumer   4,482   4,420   2,819   3,584   830   68
    Other   47   39   61   —   47   —
    Total $ 39,338   27,786   25,425   32,896   5,289   1,153
                             

    Glacier Bancorp, Inc.
    Credit Quality Summary by Regulatory Classification (continued)

      Accruing 30-89 Days Delinquent Loans,  by Loan Type   % Change from
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Dec 31,
    2024    		   Mar 31,
    2024
    Custom and owner occupied construction $ 786   $ 969   $ 4,784   (19)%   (84)%
    Pre-sold and spec construction   —     564     1,181   (100)%   (100)%
    Total residential construction   786     1,533     5,965   (49)%   (87)%
    Land development   —     1,450     59   (100)%   (100)%
    Consumer land or lots   1,026     402     332   155 %   209 %
    Unimproved land   32     36     575   (11)%   (94)%
    Developed lots for operative builders   —     214     —   (100)%   n/m
    Commercial lots   189     —     1,225   n/m   (85)%
    Other construction   —     —     1,248   n/m   (100)%
    Total land, lot and other construction   1,247     2,102     3,439   (41)%   (64)%
    Owner occupied   3,786     2,867     2,991   32 %   27 %
    Non-owner occupied   346     5,037     18,118   (93)%   (98)%
    Total commercial real estate   4,132     7,904     21,109   (48)%   (80)%
    Commercial and industrial   5,358     6,194     14,806   (13)%   (64)%
    Agriculture   5,731     744     3,922   670 %   46 %
    First lien   14,826     6,326     5,626   134 %   164 %
    Junior lien   1,023     214     145   378 %   606 %
    Total 1-4 family   15,849     6,540     5,771   142 %   175 %
    Home equity lines of credit   6,993     3,731     3,668   87 %   91 %
    Other consumer   1,824     1,775     1,948   3 %   (6)%
    Total consumer   8,817     5,506     5,616   60 %   57 %
    States and political subdivisions   3,220     —     —   n/m   n/m
    Other   1,318     1,705     1,795   (23)%   (27)%
    Total $ 46,458   $ 32,228   $ 62,423   44 %   (26)%

    ______________________________

    n/m – not measurable

    Glacier Bancorp, Inc.
    Credit Quality Summary by Regulatory Classification (continued)
               
      Net Charge-Offs (Recoveries), Year-to-Date
    Period Ending, By Loan Type    		   Charge-Offs   Recoveries
    (Dollars in thousands) Mar 31,
    2025    		   Dec 31,
    2024    		   Mar 31,
    2024    		   Mar 31,
    2025    		   Mar 31,
    2025
    Pre-sold and spec construction $ —     (4 )   (4 )   —   —
    Pre-sold and spec construction $ —     (4 )   (4 )   —   —
    Land development   (341 )   1,095     (1 )   —   341
    Consumer land or lots   (3 )   (22 )   (1 )   —   3
    Unimproved land   —     1,338     —     —   —
    Commercial lots   —     319     —     —   —
    Total land, lot and other construction   (344 )   2,730     (2 )   —   344
    Owner occupied   (1 )   (73 )   (3 )   —   1
    Non-owner occupied   (6 )   2     (1 )   —   6
    Total commercial real estate   (7 )   (71 )   (4 )   —   7
    Commercial and industrial   92     1,422     328     421   329
    Agriculture   (1 )   64     68     —   1
    First lien   (69 )   32     (4 )   —   69
    Junior lien   (5 )   (65 )   (5 )   —   5
    Total 1-4 family   (74 )   (33 )   (9 )   —   74
    Home equity lines of credit   (20 )   69     5     —   20
    Other consumer   276     1,078     251     331   55
    Total consumer   256     1,147     256     331   75
    Other   1,873     8,643     2,439     3,145   1,272
    Total $ 1,795     13,898     3,072     3,897   2,102
                               

    Visit our website at www.glacierbancorp.com 

    The MIL Network –

  • MIL-OSI: Heritage Commerce Corp Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    SAN JOSE, Calif., April 24, 2025 (GLOBE NEWSWIRE) — Heritage Commerce Corp (Nasdaq: HTBK), (the “Company”), the holding company for Heritage Bank of Commerce (the “Bank”) today announced its financial results for the first quarter of 2025. All data are unaudited.

    QUARTERLY HIGHLIGHTS:

    Net Income Earnings Per Share Pre-Provision Net
    Revenue (“PPNR”)    (1)    		 Fully Tax Equivalent
    (“FTE”) Net Interest
    Margin(1)    		 Efficiency Ratio(1) Tangible Book Value
    Per Share    (1)
               
    $11.6 million $0.19 $16.6 million 3.39% 63.96% $8.48
               


    CEO COMMENTARY:
    “We delivered a solid quarter of performance with a 9% increase in our level of profitability from the prior quarter,” said Clay Jones, President and Chief Executive Officer. “While our balance sheet trends reflected the seasonally low loan demand and deposit outflows in the first quarter, we generated a higher level of profitability due to improved net interest margin, strong expense control, and an improvement in our asset quality. We also redeployed some of our excess liquidity to purchase new investment securities, which we expect will have a positive impact on our net interest income and net interest margin going forward. Our longer-term trends remain positive as well, with notable improvement in many areas compared to the first quarter of last year, including a 14% increase in net income and increases in the annualized returns on average assets and average equity.”

    “While economic uncertainty has increased over the past few months, we still expect to deliver solid financial performance in 2025 as we continue to capitalize on our market position to assist new clients that have been impacted by dislocation and disruption in our markets resulting from bank failures and acquisitions. We believe that we will continue to see positive trends in areas such as net interest margin, loan and deposit growth, and expense management, which should lead to strong financial performance for our shareholders as we move through the year,” said Mr. Jones.

    LINKED-QUARTER BASIS YEAR-OVER-YEAR
    FINANCIAL HIGHLIGHTS:
    		  
    • Net income of $11.6 million and earnings per share of $0.19, up 9% and 12%, from $10.6 million and $0.17, respectively
    • Total revenue of $46.1 million, a decrease of 1%, or $314,000, compared to a decrease in noninterest expense of 3%, or $848,000
    • PPNR(1) of $16.6 million, up $534,000 from $16.1 million
    • Effective tax rate of 28.8%, compared to 27.9%
    • Net income of $11.6 million and earnings per share of $0.19, up 14% and 12%, from $10.2 million and $0.17, respectively
    • Total revenue of $46.1 million, an increase of 9%, or $3.9 million, compared to an increase in noninterest expense of 7%, or $1.9 million
    • PPNR(1) of $16.6 million, up $2.0 million from $14.6 million
    • Effective tax rate of 28.8%, compared to 29.5%
    FINANCIAL CONDITION:  
    • Loans held-for-investment (“HFI”) remained relatively flat at $3.5 billion
    • Total deposits of $4.7 billion, down $136.8 million, or 3%
    • Loan to deposit ratio of 74.45%, up from 72.45%
    • Total shareholders’ equity of $696 million, up $6.5 million
    • Increase in loans HFI of $150.8 million, or 5%
    • Increase in total deposits of $238.6 million, or 5%
    • Loan to deposit ratio of 74.45%, down from 75.06%
    • Increase in total shareholders’ equity of $19.9 million
    CREDIT QUALITY:  
    • Nonperforming assets (“NPAs”) to total assets of 0.11%, compared to 0.14%
    • Classified assets to total assets of 0.73%, compared to 0.74%
    • NPAs to total assets of 0.11%, compared to 0.15%
    • Classified assets to total assets of 0.73%, compared to 0.67%
    KEY PERFORMANCE METRICS:  
    • FTE net interest margin(1) of 3.39%, an increase from 3.32%
    • Return on average tangible assets(1) and on tangible common equity(1) of 0.88% and 9.09%, compared to 0.78% and 8.25%, respectively
    • Efficiency ratio(1) of 63.96%, compared to 65.35%
    • Common equity tier 1 capital ratio of 13.6%, compared to 13.4%
    • Total capital ratio of 15.9%, compared to 15.6%
    • Tangible common equity ratio(1) of 9.78%, an increase of 4% from 9.43%
    • Tangible book value per share(1) of $8.48, compared to $8.41
    • FTE net interest margin(1) of 3.39%, an increase from 3.31%
    • Return on average tangible assets(1) and on tangible common equity(1) of 0.88% and 9.09%, compared to 0.82% and 8.24%, respectively
    • Efficiency ratio(1) of 63.96%, compared to 65.34%
    • Common equity tier 1 capital ratio of 13.6%, compared to 13.4%
    • Total capital ratio of 15.9%, compared to 15.6%
    • Tangible common equity ratio(1) of 9.78%, a decrease of 1% from 9.85%
    • Tangible book value per share(1) of $8.48, compared to $8.17
       

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” later in this press release.

    Results of Operations:

    Net interest income totaled $43.4 million for the first quarter of 2025, a slight decrease of $235,000, or 1%, compared to $43.6 million for the fourth quarter of 2024. The decrease was primarily due to two fewer accrual days during the quarter from the prior linked quarter, together with a lower average balance on interest earning assets, which was largely offset by a decrease in rates paid on deposits and a decrease of higher cost deposit balances. Net interest income increased $3.9 million, or 10%, compared to $39.5 million for the first quarter of 2024. The increase was primarily due to growth in average earning asset balances, partially offset by an increase in interest-bearing deposit balances.

    The FTE net interest margin(1) was 3.39% for the first quarter of 2025, an increase over 3.32% for the fourth quarter of 2024 primarily due to lower rates paid on customer deposits, an increase in the average balances of securities and loans, and higher average yields on securities, partially offset by a decrease in the average balance of noninterest-bearing demand deposits and a lower average yield on overnight funds. The FTE net interest margin(1) increased from 3.31% for the first quarter of 2024 primarily due to lower rates paid on customer deposits, an increase in the average balances of loans, and higher average yields on securities and loans, and an increase in the average balance of deposits resulting in a higher average balance of overnight funds, partially offset by a lower average yield on overnight funds.

    We recorded a provision for credit losses on loans of $274,000 for the first quarter of 2025, compared to a $1.3 million provision for credit losses on loans for the fourth quarter of 2024, and a $184,000 provision for credit losses on loans for the first quarter of 2024.

    Total noninterest income remained relatively flat at $2.7 million for the first quarter of 2025, compared to $2.8 million for the fourth quarter of 2024, and $2.6 million for the first quarter of 2024.

    Total revenue, which is defined as net interest income before provision for credit losses on loans plus noninterest income, decreased $314,000, or 1%, to $46.1 million for the first quarter of 2025, compared to $46.4 million for the fourth quarter of 2024, and increased $3.9 million, or 9%, from $42.1 million for the first quarter of 2024.

    Total noninterest expense for the first quarter of 2025 decreased to $29.5 million, compared to $30.3 million for the fourth quarter of 2024, primarily due to nonrecurring personnel related expenses and legal fees of approximately $1.1 million, and higher professional fees and homeowner association vendor payments during the fourth quarter of 2024. Total noninterest expense increased compared to $27.5 million for the first quarter of 2024, primarily due to higher salaries and employee benefits, professional fees, and information technology related expenses.

    Income tax expense was $4.7 million for the first quarter of 2025, compared to $4.1 million for the fourth quarter of 2024, and $4.3 million for the first quarter of 2024. The effective tax rate for the first quarter of 2025 was 28.8%, compared to 27.9% for the fourth quarter of 2024, and 29.5% for the first quarter of 2024.

    Net income was $11.6 million, or $0.19 per average diluted common share, for the first quarter of 2025, compared to $10.6 million, or $0.17 per average diluted common share, for the fourth quarter of 2024, and $10.2 million, or $0.17 per average diluted common share, for the first quarter of 2024.

    For the first quarter of 2025, the Company’s PPNR(1), which is defined as total revenue less noninterest expense, was $16.6 million, compared to $16.1 million for the fourth quarter of 2024, and $14.6 million for the first quarter of 2024.

    The efficiency ratio(1) improved to 63.96% for the first quarter of 2025, compared to 65.35% for the fourth quarter of 2024, as a result of lower noninterest expense, partially offset by lower total revenue. The efficiency ratio(1) improved from 65.34% for the first quarter of 2024, primarily due to higher total revenue, partially offset by higher noninterest expense during the first quarter of 2025.

    Full time equivalent employees were 350 at March 31, 2025 compared to 355 at December 31, 2024, and 351 at March 31, 2024.

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” later in this press release.

    Financial Condition and Capital Management:

    Total assets decreased 2% to $5.5 billion at March 31, 2025, compared to $5.6 billion at December 31, 2024, primarily due to a decrease in deposits resulting in a decrease in overnight funds. Total assets increased 5% from $5.3 billion at March 31, 2024, primarily due to an increase in deposits resulting in an increase in overnight funds, and an increase in loans.

    Investment securities available-for-sale (at fair value) totaled $371.0 million at March 31, 2025, compared to $256.3 million at December 31, 2024, and $404.5 million at March 31, 2024. The pre-tax unrealized loss on the securities available-for-sale portfolio was $3.1 million, or $2.3 million net of taxes, which equaled less than 1% of total shareholders’ equity at March 31, 2025.

    During the first quarter of 2025, the Company purchased $62.3 million of agency mortgage-backed securities, $44.8 million of collateralized mortgage obligations, and $44.7 million of U.S. Treasury securities, for total purchases of $151.8 million in the available-for-sale portfolio. Securities purchased had a book yield of 4.86% and an average life of 4.34 years.

    Investment securities held-to-maturity (at amortized cost, net of allowance for credit losses of $12,000), totaled $576.7 million at March 31, 2025, compared to $590.0 million at December 31, 2024, and $636.2 million at March 31, 2024. The fair value of the securities held-to-maturity portfolio was $496.3 million at March 31, 2025. The pre-tax unrecognized loss on the securities held-to-maturity portfolio was $80.5 million, or $56.7 million net of taxes, which equaled 8.1% of total shareholders’ equity at March 31, 2025.

    The unrealized and unrecognized losses in both the available-for-sale and held-to-maturity portfolios were due to higher interest rates at March 31, 2025 compared to when the securities were purchased. The issuers are of high credit quality and all principal amounts are expected to be repaid when the securities mature. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline.

    Loans HFI, net of deferred costs and fees, remained flat at $3.5 billion at March 31, 2025 as compared to December 31, 2024, and increased $150.8 million, or 5%, from $3.3 billion at March 31, 2024. Loans HFI, excluding residential mortgages, remained flat at $3.0 billion at March 31, 2025 as compared to December 31, 2024, and increased $175.5 million, or 6%, from $2.8 billion at March 31, 2024.

    Commercial and industrial line utilization was 31% at March 31, 2025, compared to 34% at December 31, 2024, and 28% at March 31, 2024. Commercial real estate (“CRE”) loans totaled $2.0 billion at March 31, 2025, of which 31% were owner occupied and 69% were investor CRE loans. Owner occupied CRE loans totaled 31% at December 31, 2024 and 32% at March 31, 2024. At March 31, 2025, approximately 24% of the Company’s loan portfolio consisted of floating interest rate loans, compared to 26% at both December 31, 2024 and March 31, 2024.

    At March 31, 2025, paydowns and maturities of investment securities and fixed interest rate loans maturing within one year totaled $395.6 million.

    Total deposits decreased $136.8 million, or 3%, to $4.7 billion at March 31, 2025, compared to $4.8 billion at December 31, 2024 due to deposits outflows we typically see in the first quarter, and increased $238.6 million, or 5% from $4.4 billion at March 31, 2024.

    The following table shows the Company’s deposit types as a percentage of total deposits at the dates indicated:

                       
        March 31,     December 31,     March 31,  
    DEPOSITS TYPE % TO TOTAL DEPOSITS   2025     2024     2024  
    Demand, noninterest-bearing   24 %   25 %   28 %
    Demand, interest-bearing   20 %   19 %   21 %
    Savings and money market   29 %   28 %   25 %
    Time deposits — under $250   1 %   1 %   1 %
    Time deposits — $250 and over   5 %   4 %   4 %
    ICS/CDARS — interest-bearing demand,                  
    money market and time deposits   21 %   23 %   21 %
    Total deposits   100 %   100 %   100 %
                       

    The loan to deposit ratio was 74.45% at March 31, 2025, compared to 72.45% at December 31, 2024, and 75.06% at March 31, 2024.

    The Company’s total available liquidity and borrowing capacity was $3.2 billion at March 31, 2025, compared to $3.3 billion at December 31, 2024, and $3.0 billion at March 31, 2024.

    Total shareholders’ equity was $696.2 million at March 31, 2025, compared to $689.7 million at December 31, 2024, and $676.3 million at March 31, 2024. The increase in shareholders’ equity at March 31, 2025 is primarily a function of net income and the decrease in the total accumulated other comprehensive loss, partially offset by dividends to stockholders.

    Total accumulated other comprehensive loss of $6.8 million at March 31, 2025 was comprised of unrealized losses on securities available-for-sale of $2.3 million, a split dollar insurance contracts liability of $2.4 million, a supplemental executive retirement plan liability of $2.2 million, and a $49,000 unrealized gain on interest-only strip from SBA loans.

    The Company’s consolidated capital ratios exceeded regulatory guidelines and the Bank’s capital ratios exceeded regulatory guidelines under the prompt corrective action (“PCA”) regulatory guidelines for a well-capitalized financial institution, and the Basel III minimum regulatory requirements at March 31, 2025.

    Tangible book value per share(1) was $8.48 at March 31, 2025, compared to $8.41 at December 31, 2024, and $8.17 at March 31, 2024.

    In July 2024, the Company announced that its Board of Directors adopted a share repurchase program under which the Company is authorized to repurchase up to $15 million of the Company’s shares of its issued and outstanding common stock. The Company did not repurchase any of its common stock during 2024 or the first quarter of 2025.

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” later in this press release.

    Credit Quality:

    The provision for credit losses on loans totaled $274,000 for the first quarter of 2025, compared to a $1.3 million provision for credit losses on loans for the fourth quarter of 2024, and a provision for credit losses on loans of $184,000 for the first quarter of 2024. Net charge-offs totaled $965,000 for the first quarter of 2025, compared to $197,000 for the fourth quarter of 2024, and $254,000 for the first quarter of 2024. More than half of the net charge-offs for the first quarter of 2025 related to one commercial contractor that was previously reserved for during the fourth quarter of 2024. The remaining charge-offs were related to five different small businesses in a variety of industries. Four loans were underwritten using a scored small business product whose underwriting guidelines have been tightened since the loans were made. 

    The allowance for credit losses on loans (“ACLL”) at March 31, 2025 was $48.3 million, or 1.38% of total loans, representing 765% of total nonperforming loans. The ACLL at December 31, 2024 was $49.0 million, or 1.40% of total loans, representing 638% of total nonperforming loans. The ACLL at March 31, 2024 was $47.9 million, or 1.44% of total loans, representing 608% of total nonperforming loans. The reduction to the allowance for credit on losses on loans reflects our credit assessment and economic factors.

    NPAs were $6.3 million at March 31, 2025, compared to $7.7 million at December 31, 2024, and $7.9 million at March 31, 2024. There were no CRE loans in NPAs at March 31, 2025, December 31, 2024, or March 31, 2024. There were no foreclosed assets on the balance sheet at March 31, 2025, December 31, 2024, or March 31, 2024. There were no Shared National Credits (“SNCs”) or material purchased participations included in NPAs or total loans at March 31, 2025, December 31, 2024, or March 31, 2024.

    Classified assets totaled $40.0 million, or 0.73% of total assets, at March 31, 2025, compared to $41.7 million, or 0.74% of total assets, at December 31, 2024, and $35.4 million, or 0.67% of total assets, at March 31, 2024. The increase in classified assets from March 31, 2024 was primarily the result of one downgraded owner occupied CRE credit, and a number of residential related loans downgraded during the fourth quarter of 2024. The loans are well-collateralized and we do not anticipate to incur losses as a result of the downgrades of these loans.

    Heritage Commerce Corp, a bank holding company established in October 1997, is the parent company of Heritage Bank of Commerce, established in 1994 and headquartered in San Jose, CA with full-service branches in Danville, Fremont, Gilroy, Hollister, Livermore, Los Altos, Los Gatos, Morgan Hill, Oakland, Palo Alto, Pleasanton, Redwood City, San Francisco, San Jose, San Mateo, San Rafael, and Walnut Creek. Heritage Bank of Commerce is an SBA Preferred Lender. Bay View Funding, a subsidiary of Heritage Bank of Commerce, is based in San Jose, CA and provides business-essential working capital factoring financing to various industries throughout the United States. For more information, please visit www.heritagecommercecorp.com. The contents of our website are not incorporated into, and do not form a part of, this release or of our filings with the Securities and Exchange Commission.

    Reclassifications

    During the first quarter of 2025, we reclassified Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock dividends from interest income to noninterest income and the related average asset balances were reclassified from interest earning assets to other assets on the “Net Interest Income and Net Interest Margin” tables. The amounts for the prior periods were reclassified to conform to the current presentation. These reclassifications did not affect previously reported net income or shareholders’ equity.

    Non-GAAP Financial Measures

    Financial results are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. Management believes these non-GAAP financial measures are common in the banking industry, and may enhance comparability for peer comparison purposes. These non-GAAP financial measures should be supplemental to primary GAAP financial measures and should not be read in isolation or relied upon as a substitute for primary GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is presented in the tables at the end of this press release under “Reconciliation of Non-GAAP Financial Measures.”

    Forward-Looking Statement Disclaimer

    Certain matters discussed in this press release constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are inherently uncertain in that they reflect plans and expectations for future events. These statements may include, among other things, those relating to the Company’s future financial performance, plans and objectives regarding future events, expectations regarding changes in interest rates and market conditions, projected cash flows of our investment securities portfolio, the performance of our loan portfolio, estimated net interest income resulting from a shift in interest rates, expectation of high credit quality issuers ability to repay, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events. Any statements that reflect our belief about, confidence in, or expectations for future events, performance or condition should be considered forward-looking statements. Readers should not construe these statements as assurances of a given level of performance, nor as promises that we will take actions that we currently expect to take. All statements are subject to various risks and uncertainties, many of which are outside our control and some of which may fall outside our ability to predict or anticipate. Accordingly, our actual results may differ materially from our projected results, and we may take actions or experience events that we do not currently expect. Risks and uncertainties that could cause our financial performance to differ materially from our goals, plans, expectations and projections expressed in forward-looking statements include those set forth in our filings with the Securities and Exchange Commission, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and include: (i) risks of geographic concentration of our client base, our loans, and the collateral securing our loans, as those clients and assets may be particularly subject to natural disasters and to events and conditions that directly or indirectly affect those regions, including the particular risks of natural disasters (including earthquakes, fires, and flooding) and other events that disproportionately affect that region; (ii) cybersecurity risks that may affect us directly or may impact us indirectly by virtue of their effects on our clients, markets or vendors, including our ability to identify and address cybersecurity risks, including those posed by the increasing use of artificial intelligence, such as data security breaches, “denial of service” attacks, “hacking” and identity theft affecting us, our clients, and our third-party vendors and service providers; (iii) domestic, international and multinational political events that have accompanied or that may in the future accompany or result from recent political changes, particularly including sociopolitical events and conditions that result from political conflicts and law enforcement activities that may adversely affect our markets or our clients; (iv) media items and consumer confidence as those factors affect our clients’ confidence in the banking system generally and in our bank specifically; (v) adequacy of our risk management framework, disclosure controls and procedures and internal control over financial reporting; (vi) market, geographic and sociopolitical factors that arise by virtue of the fact that we operate primarily in the general San Francisco Bay Area of Northern California; (vii) the effects of recent wildfires affecting Southern California, which have affected certain clients and certain loans secured by mortgages in Los Angeles County, and which are affecting or may, in the future, affect other clients in those and other markets throughout California; (viii) factors that affect our liquidity and our ability to meet client demands for withdrawals from deposit accounts and undrawn lines of credit, including our cash on hand and the availability of funds from our own lines of credit; (ix) factors that affect the value and liquidity of our investment portfolios, particularly the values of securities available-for-sale; (x) our ability to estimate accurately, and to establish adequate reserves against, the risk of loss associated with our loan and lease portfolios and our factoring business; (xi) inflationary pressures and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans to clients, whether held in the portfolio or in the secondary market; (xii) increased capital requirements for our continual growth or as imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; (xiii) operational issues stemming from, and/or capital spending necessitated by, the potential need to adapt to industry changes in information technology systems, on which we are highly dependent; (xiv) events that affect our ability to attract, recruit, and retain qualified officers and other personnel to implement our strategic plan, and that enable current and future personnel to protect and develop our relationships with clients, and to promote our business, results of operations and growth prospects; (xv) the expense and uncertain resolution of litigation matters whether occurring in the ordinary course of business or otherwise, particularly including but not limited to the effects of recent and ongoing developments in California labor and employment laws, regulations and court decisions; and (xvi) our success in managing the risks involved in the foregoing factors.

    Member FDIC

    For additional information, contact:
    Debbie Reuter
    EVP, Corporate Secretary
    Direct: (408) 494-4542
    Debbie.Reuter@herbank.com

                                 
        For the Quarter Ended:   Percent Change From:  
    CONSOLIDATED INCOME STATEMENTS      March 31,       December 31,       March 31,       December 31,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024    2024   
    Interest income   $ 61,832   $ 64,043   $ 56,960   (3 ) % 9   %
    Interest expense     18,472     20,448     17,458   (10 ) % 6   %
    Net interest income before provision                            
    for credit losses on loans     43,360     43,595     39,502   (1 ) % 10   %
    Provision for credit losses on loans     274     1,331     184   (79 ) % 49   %
    Net interest income after provision                            
    for credit losses on loans     43,086     42,264     39,318   2   % 10   %
    Noninterest income:                            
    Service charges and fees on deposit                            
    accounts     892     885     877   1   % 2   %
    FHLB and FRB stock dividends     590     590     591   0   % 0   %
    Increase in cash surrender value of                            
    life insurance     538     528     518   2   % 4   %
    Gain on sales of SBA loans     98     125     178   (22 ) % (45 ) %
    Servicing income     82     77     90   6   % (9 ) %
    Termination fees     87     18     13   383   % 569   %
    Other     409     552     371   (26 ) % 10   %
    Total noninterest income     2,696     2,775     2,638   (3 ) % 2   %
    Noninterest expense:                            
    Salaries and employee benefits     16,575     16,976     15,509   (2 ) % 7   %
    Occupancy and equipment     2,534     2,495     2,443   2   % 4   %
    Professional fees     1,580     1,711     1,327   (8 ) % 19   %
    Other     8,767     9,122     8,257   (4 ) % 6   %
    Total noninterest expense     29,456     30,304     27,536   (3 ) % 7   %
    Income before income taxes     16,326     14,735     14,420   11   % 13   %
    Income tax expense     4,700     4,114     4,254   14   % 10   %
    Net income   $ 11,626   $ 10,621   $ 10,166   9   % 14   %
                                 
    PER COMMON SHARE DATA                            
    (unaudited)                              
    Basic earnings per share   $ 0.19   $ 0.17   $ 0.17   12   % 12   %
    Diluted earnings per share   $ 0.19   $ 0.17   $ 0.17   12   % 12   %
    Weighted average shares outstanding – basic     61,479,579     61,320,505     61,186,623   0   % 0   %
    Weighted average shares outstanding – diluted     61,708,361     61,679,735     61,470,552   0   % 0   %
    Common shares outstanding at period-end     61,611,121     61,348,095     61,253,625   0   % 1   %
    Dividend per share   $ 0.13   $ 0.13   $ 0.13   0   % 0   %
    Book value per share   $ 11.30   $ 11.24   $ 11.04   1   % 2   %
    Tangible book value per share(1)   $ 8.48   $ 8.41   $ 8.17   1   % 4   %
                                 
    KEY PERFORMANCE METRICS                                 
    (in $000’s, unaudited)                                 
    Annualized return on average equity     6.81 %   6.16 %   6.08 % 11   % 12   %
    Annualized return on average tangible                            
    common equity(1)     9.09 %   8.25 %   8.24 % 10   % 10   %
    Annualized return on average assets     0.85 %   0.75 %   0.79 % 13   % 8   %
    Annualized return on average tangible assets(1)     0.88 %   0.78 %   0.82 % 13   % 7   %
    Net interest margin (FTE)(1)     3.39 %   3.32 %   3.31 % 2   % 2   %
    Total revenue   $ 46,056   $ 46,370   $ 42,140   (1 ) % 9   %
    Pre-provision net revenue(1)   $ 16,600   $ 16,066   $ 14,604   3   % 14   %
    Efficiency ratio(1)     63.96 %   65.35 %   65.34 % (2 ) % (2 ) %
                                 
    AVERAGE BALANCES                                
    (in $000’s, unaudited)                                 
    Average assets   $ 5,559,896   $ 5,607,840   $ 5,178,636   (1 ) % 7   %
    Average tangible assets(1)   $ 5,386,001   $ 5,433,439   $ 5,002,597   (1 ) % 8   %
    Average earning assets   $ 5,188,317   $ 5,235,986   $ 4,810,505   (1 ) % 8   %
    Average loans held-for-sale   $ 2,290   $ 2,260   $ 2,749   1   % (17 ) %
    Average loans held-for-investment   $ 3,429,014   $ 3,388,729   $ 3,297,240   1   % 4   %
    Average deposits   $ 4,717,517   $ 4,771,491   $ 4,360,150   (1 ) % 8   %
    Average demand deposits – noninterest-bearing   $ 1,167,330   $ 1,222,393   $ 1,177,078   (5 ) % (1 ) %
    Average interest-bearing deposits   $ 3,550,187   $ 3,549,098   $ 3,183,072   0   % 12   %
    Average interest-bearing liabilities   $ 3,589,872   $ 3,588,755   $ 3,222,603   0   % 11   %
    Average equity   $ 692,733   $ 686,263   $ 672,292   1   % 3   %
    Average tangible common equity(1)   $ 518,838   $ 511,862   $ 496,253   1   % 5   %
                                 

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

                                     
        For the Quarter Ended:  
    CONSOLIDATED INCOME STATEMENTS      March 31,       December 31,       September 30,      June 30,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Interest income   $ 61,832   $ 64,043   $ 60,852   $ 58,489   $ 56,960  
    Interest expense     18,472     20,448     21,523     19,622     17,458  
    Net interest income before provision                                
    for credit losses on loans     43,360     43,595     39,329     38,867     39,502  
    Provision for credit losses on loans     274     1,331     153     471     184  
    Net interest income after provision                                
    for credit losses on loans     43,086     42,264     39,176     38,396     39,318  
    Noninterest income:                                
    Service charges and fees on deposit                                
    accounts     892     885     908     891     877  
    FHLB and FRB stock dividends     590     590     586     588     591  
    Increase in cash surrender value of                                
    life insurance     538     528     530     521     518  
    Gain on sales of SBA loans     98     125     94     76     178  
    Servicing income     82     77     108     90     90  
    Termination fees     87     18     46     100     13  
    Gain on proceeds from company-owned                                
    life insurance     —     —     —     219     —  
    Other     409     552     554     379     371  
    Total noninterest income     2,696     2,775     2,826     2,864     2,638  
    Noninterest expense:                                
    Salaries and employee benefits     16,575     16,976     15,673     15,794     15,509  
    Occupancy and equipment     2,534     2,495     2,599     2,689     2,443  
    Professional fees     1,580     1,711     1,306     1,072     1,327  
    Other     8,767     9,122     7,977     8,633     8,257  
    Total noninterest expense     29,456     30,304     27,555     28,188     27,536  
    Income before income taxes     16,326     14,735     14,447     13,072     14,420  
    Income tax expense     4,700     4,114     3,940     3,838     4,254  
    Net income   $ 11,626   $ 10,621   $ 10,507   $ 9,234   $ 10,166  
                                     
    PER COMMON SHARE DATA                                
    (unaudited)                                    
    Basic earnings per share   $ 0.19   $ 0.17   $ 0.17   $ 0.15   $ 0.17  
    Diluted earnings per share   $ 0.19   $ 0.17   $ 0.17   $ 0.15   $ 0.17  
    Weighted average shares outstanding – basic     61,479,579     61,320,505     61,295,877     61,279,914     61,186,623  
    Weighted average shares outstanding – diluted     61,708,361     61,679,735     61,546,157     61,438,088     61,470,552  
    Common shares outstanding at period-end     61,611,121     61,348,095     61,297,344     61,292,094     61,253,625  
    Dividend per share   $ 0.13   $ 0.13   $ 0.13   $ 0.13   $ 0.13  
    Book value per share   $ 11.30   $ 11.24   $ 11.18   $ 11.08   $ 11.04  
    Tangible book value per share(1)   $ 8.48   $ 8.41   $ 8.33   $ 8.22   $ 8.17  
                                     
    KEY PERFORMANCE METRICS                                   
    (in $000’s, unaudited)                                     
    Annualized return on average equity     6.81 %   6.16 %   6.14 %   5.50 %   6.08 %
    Annualized return on average tangible                                
    common equity(1)     9.09 %   8.25 %   8.27 %   7.43 %   8.24 %
    Annualized return on average assets     0.85 %   0.75 %   0.78 %   0.71 %   0.79 %
    Annualized return on average tangible assets(1)     0.88 %   0.78 %   0.81 %   0.74 %   0.82 %
    Net interest margin (FTE)(1)     3.39 %   3.32 %   3.15 %   3.23 %   3.31 %
    Total revenue   $ 46,056   $ 46,370   $ 42,155   $ 41,731   $ 42,140  
    Pre-provision net revenue(1)   $ 16,600   $ 16,066   $ 14,600   $ 13,543   $ 14,604  
    Efficiency ratio(1)     63.96 %   65.35 %   65.37 %   67.55 %   65.34 %
                                     
    AVERAGE BALANCES                                     
    (in $000’s, unaudited)                                     
    Average assets   $ 5,559,896   $ 5,607,840   $ 5,352,067   $ 5,213,171   $ 5,178,636  
    Average tangible assets(1)   $ 5,386,001   $ 5,433,439   $ 5,177,114   $ 5,037,673   $ 5,002,597  
    Average earning assets   $ 5,188,317   $ 5,235,986   $ 4,980,082   $ 4,840,670   $ 4,810,505  
    Average loans held-for-sale   $ 2,290   $ 2,260   $ 1,493   $ 1,503   $ 2,749  
    Average loans held-for-investment   $ 3,429,014   $ 3,388,729   $ 3,359,647   $ 3,328,358   $ 3,297,240  
    Average deposits   $ 4,717,517   $ 4,771,491   $ 4,525,946   $ 4,394,545   $ 4,360,150  
    Average demand deposits – noninterest-bearing   $ 1,167,330   $ 1,222,393   $ 1,172,304   $ 1,127,145   $ 1,177,078  
    Average interest-bearing deposits   $ 3,550,187   $ 3,549,098   $ 3,353,642   $ 3,267,400   $ 3,183,072  
    Average interest-bearing liabilities   $ 3,589,872   $ 3,588,755   $ 3,393,264   $ 3,306,972   $ 3,222,603  
    Average equity   $ 692,733   $ 686,263   $ 680,404   $ 675,108   $ 672,292  
    Average tangible common equity(1)   $ 518,838   $ 511,862   $ 505,451   $ 499,610   $ 496,253  
                                     

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

                                 
        End of Period:   Percent Change From:  
    CONSOLIDATED BALANCE SHEETS      March 31,       December 31,       March 31,       December 31,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024    2024   
    ASSETS                            
    Cash and due from banks   $ 44,281     $ 29,864     $ 32,543     48   % 36   %
    Other investments and interest-bearing deposits                            
    in other financial institutions     700,769       938,259       508,816     (25 ) % 38   %
    Securities available-for-sale, at fair value     370,976       256,274       404,474     45   % (8 ) %
    Securities held-to-maturity, at amortized cost     576,718       590,016       636,249     (2 ) % (9 ) %
    Loans – held-for-sale – SBA, including deferred costs     1,884       2,375       1,946     (21 ) % (3 ) %
    Loans – held-for-investment:                            
    Commercial     489,241       531,350       452,231     (8 ) % 8   %
    Real estate:                            
    CRE – owner occupied     616,825       601,636       585,031     3   % 5   %
    CRE – non-owner occupied     1,363,275       1,341,266       1,271,184     2   % 7   %
    Land and construction     136,106       127,848       129,712     6   % 5   %
    Home equity     119,138       127,963       122,794     (7 ) % (3 ) %
    Multifamily     284,510       275,490       269,263     3   % 6   %
    Residential mortgages     465,330       471,730       490,035     (1 ) % (5 ) %
    Consumer and other     12,741       14,837       16,439     (14 ) % (22 ) %
    Loans     3,487,166       3,492,120       3,336,689     0   % 5   %
    Deferred loan fees, net     (268 )     (183 )     (587 )   46   % (54 ) %
    Total loans – held-for-investment, net of deferred fees     3,486,898       3,491,937       3,336,102     0   % 5   %
    Allowance for credit losses on loans     (48,262 )     (48,953 )     (47,888 )   (1 ) % 1   %
    Loans, net     3,438,636       3,442,984       3,288,214     0   % 5   %
    Company-owned life insurance     81,749       81,211       80,007     1   % 2   %
    Premises and equipment, net     9,772       10,140       9,986     (4 ) % (2 ) %
    Goodwill     167,631       167,631       167,631     0   % 0   %
    Other intangible assets     5,986       6,439       8,074     (7 ) % (26 ) %
    Accrued interest receivable and other assets     115,853       119,813       118,134     (3 ) % (2 ) %
    Total assets   $ 5,514,255     $ 5,645,006     $ 5,256,074     (2 ) % 5   %
                                 
    LIABILITIES AND SHAREHOLDERS’ EQUITY                            
    Liabilities:                            
    Deposits:                            
    Demand, noninterest-bearing   $ 1,128,593     $ 1,214,192     $ 1,242,059     (7 ) % (9 ) %
    Demand, interest-bearing     949,068       936,587       925,100     1   % 3   %
    Savings and money market     1,353,293       1,325,923       1,124,900     2   % 20   %
    Time deposits – under $250     37,592       38,988       38,105     (4 ) % (1 ) %
    Time deposits – $250 and over     213,357       206,755       200,739     3   % 6   %
    ICS/CDARS – interest-bearing demand, money market                            
    and time deposits     1,001,365       1,097,586       913,757     (9 ) % 10   %
    Total deposits     4,683,268       4,820,031       4,444,660     (3 ) % 5   %
    Subordinated debt, net of issuance costs     39,691       39,653       39,539     0   % 0   %
    Accrued interest payable and other liabilities     95,106       95,595       95,579     (1 ) % 0   %
    Total liabilities     4,818,065       4,955,279       4,579,778     (3 ) % 5   %
                                 
    Shareholders’ Equity:                            
    Common stock     511,596       510,070       507,578     0   % 1   %
    Retained earnings     191,401       187,762       181,306     2   % 6   %
    Accumulated other comprehensive loss     (6,807 )     (8,105 )     (12,588 )   (16 ) % (46 ) %
    Total shareholders’ equity     696,190       689,727       676,296     1   % 3   %
    Total liabilities and shareholders’ equity   $ 5,514,255     $ 5,645,006     $ 5,256,074     (2 ) % 5   %
                                 
                                   
        End of Period:
    CONSOLIDATED BALANCE SHEETS      March 31,       December 31,       September 30,      June 30,       March 31, 
    (in $000’s, unaudited)   2025   2024   2024   2024   2024
    ASSETS                              
    Cash and due from banks   $ 44,281     $ 29,864     $ 49,722     $ 37,497     $ 32,543  
    Other investments and interest-bearing deposits                              
    in other financial institutions     700,769       938,259       906,588       610,763       508,816  
    Securities available-for-sale, at fair value     370,976       256,274       237,612       273,043       404,474  
    Securities held-to-maturity, at amortized cost     576,718       590,016       604,193       621,178       636,249  
    Loans – held-for-sale – SBA, including deferred costs     1,884       2,375       1,649       1,899       1,946  
    Loans – held-for-investment:                              
    Commercial     489,241       531,350       481,266       477,929       452,231  
    Real estate:                              
    CRE – owner occupied     616,825       601,636       602,062       594,504       585,031  
    CRE – non-owner occupied     1,363,275       1,341,266       1,310,578       1,283,323       1,271,184  
    Land and construction     136,106       127,848       125,761       125,374       129,712  
    Home equity     119,138       127,963       124,090       126,562       122,794  
    Multifamily     284,510       275,490       273,103       268,968       269,263  
    Residential mortgages     465,330       471,730       479,524       484,809       490,035  
    Consumer and other     12,741       14,837       14,179       18,758       16,439  
    Loans     3,487,166       3,492,120       3,410,563       3,380,227       3,336,689  
    Deferred loan fees, net     (268 )     (183 )     (327 )     (434 )     (587 )
    Total loans – held-for-investment, net of deferred fees     3,486,898       3,491,937       3,410,236       3,379,793       3,336,102  
    Allowance for credit losses on loans     (48,262 )     (48,953 )     (47,819 )     (47,954 )     (47,888 )
    Loans, net     3,438,636       3,442,984       3,362,417       3,331,839       3,288,214  
    Company-owned life insurance     81,749       81,211       80,682       80,153       80,007  
    Premises and equipment, net     9,772       10,140       10,398       10,310       9,986  
    Goodwill     167,631       167,631       167,631       167,631       167,631  
    Other intangible assets     5,986       6,439       6,966       7,521       8,074  
    Accrued interest receivable and other assets     115,853       119,813       123,738       121,190       118,134  
    Total assets   $ 5,514,255     $ 5,645,006     $ 5,551,596     $ 5,263,024     $ 5,256,074  
                                   
    LIABILITIES AND SHAREHOLDERS’ EQUITY                              
    Liabilities:                              
    Deposits:                              
    Demand, noninterest-bearing   $ 1,128,593     $ 1,214,192     $ 1,272,139     $ 1,187,320     $ 1,242,059  
    Demand, interest-bearing     949,068       936,587       913,910       928,246       925,100  
    Savings and money market     1,353,293       1,325,923       1,309,676       1,126,520       1,124,900  
    Time deposits – under $250     37,592       38,988       39,060       39,046       38,105  
    Time deposits – $250 and over     213,357       206,755       196,945       203,886       200,739  
    ICS/CDARS – interest-bearing demand, money market                              
    and time deposits     1,001,365       1,097,586       997,803       959,592       913,757  
    Total deposits     4,683,268       4,820,031       4,729,533       4,444,610       4,444,660  
    Other short-term borrowings     —       —       —       —       —  
    Subordinated debt, net of issuance costs     39,691       39,653       39,615       39,577       39,539  
    Accrued interest payable and other liabilities     95,106       95,595       97,096       99,638       95,579  
    Total liabilities     4,818,065       4,955,279       4,866,244       4,583,825       4,579,778  
                                   
    Shareholders’ Equity:                              
    Common stock     511,596       510,070       509,134       508,343       507,578  
    Retained earnings     191,401       187,762       185,110       182,571       181,306  
    Accumulated other comprehensive loss     (6,807 )     (8,105 )     (8,892 )     (11,715 )     (12,588 )
    Total shareholders’ equity     696,190       689,727       685,352       679,199       676,296  
    Total liabilities and shareholders’ equity   $ 5,514,255     $ 5,645,006     $ 5,551,596     $ 5,263,024     $ 5,256,074  
                                   
                                 
        At or For the Quarter Ended:   Percent Change From:  
    CREDIT QUALITY DATA      March 31,       December 31,       March 31,       December 31,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024    2024   
    Nonaccrual loans – held-for-investment:                            
    Land and construction loans   $ 4,793   $ 5,874   $ 4,673   (18 ) % 3   %
    Home equity and other loans     927     290     120   220   % 673   %
    Commercial loans     324     1,014     1,127   (68 ) % (71 ) %
    CRE loans     —     —     —   N/A     N/A    
    Total nonaccrual loans – held-for-investment:     6,044     7,178     5,920   (16 ) % 2   %
    Loans over 90 days past due                            
    and still accruing     268     489     1,951   (45 ) % (86 ) %
    Total nonperforming loans     6,312     7,667     7,871   (18 ) % (20 ) %
    Foreclosed assets     —     —     —   N/A     N/A    
    Total nonperforming assets   $ 6,312   $ 7,667   $ 7,871   (18 ) % (20 ) %
    Net charge-offs during the quarter   $ 965   $ 197   $ 254   390   % 280   %
    Provision for credit losses on loans during the quarter   $ 274   $ 1,331   $ 184   (79 ) % 49   %
    Allowance for credit losses on loans   $ 48,262   $ 48,953   $ 47,888   (1 ) % 1   %
    Classified assets   $ 40,034   $ 41,661   $ 35,392   (4 ) % 13   %
    Allowance for credit losses on loans to total loans     1.38 %   1.40 %   1.44 % (1 ) % (4 ) %
    Allowance for credit losses on loans to total nonperforming loans     764.61 %   638.49 %   608.41 % 20   % 26   %
    Nonperforming assets to total assets     0.11 %   0.14 %   0.15 % (21 ) % (27 ) %
    Nonperforming loans to total loans     0.18 %   0.22 %   0.24 % (18 ) % (25 ) %
    Classified assets to Heritage Commerce Corp                            
    Tier 1 capital plus allowance for credit losses on loans     7 %   7 %   6 % 0   % 17   %
    Classified assets to Heritage Bank of Commerce                            
    Tier 1 capital plus allowance for credit losses on loans     7 %   7 %   6 % 0   % 17   %
                                 
    OTHER PERIOD-END STATISTICS                                 
    (in $000’s, unaudited)                                 
    Heritage Commerce Corp:                            
    Tangible common equity (1)   $ 522,573   $ 515,657   $ 500,591   1   % 4   %
    Shareholders’ equity / total assets     12.63 %   12.22 %   12.87 % 3   % (2 ) %
    Tangible common equity / tangible assets (1)     9.78 %   9.43 %   9.85 % 4   % (1 ) %
    Loan to deposit ratio     74.45 %   72.45 %   75.06 % 3   % (1 ) %
    Noninterest-bearing deposits / total deposits     24.10 %   25.19 %   27.94 % (4 ) % (14 ) %
    Total capital ratio     15.9 %   15.6 %   15.6 % 2   % 2   %
    Tier 1 capital ratio     13.6 %   13.4 %   13.4 % 1   % 1   %
    Common Equity Tier 1 capital ratio     13.6 %   13.4 %   13.4 % 1   % 1   %
    Tier 1 leverage ratio     9.8 %   9.6 %   10.2 % 2   % (4 ) %
    Heritage Bank of Commerce:                            
    Tangible common equity / tangible assets (1)     10.15 %   9.79 %   10.22 % 4   % (1 ) %
    Total capital ratio     15.4 %   15.1 %   15.1 % 2   % 2   %
    Tier 1 capital ratio     14.1 %   13.9 %   13.9 % 1   % 1   %
    Common Equity Tier 1 capital ratio     14.1 %   13.9 %   13.9 % 1   % 1   %
    Tier 1 leverage ratio     10.2 %   10.0 %   10.6 % 2   % (4 ) %
                                 

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

                                     
        At or For the Quarter Ended:  
    CREDIT QUALITY DATA      March 31,       December 31,       September 30,      June 30,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Nonaccrual loans – held-for-investment:                                
    Land and construction loans   $ 4,793   $ 5,874   $ 5,862   $ 4,774   $ 4,673  
    Home equity and other loans     927     290     84     108     120  
    Commercial loans     324     1,014     752     900     1,127  
    CRE loans     —     —     —     —     —  
    Total nonaccrual loans – held-for-investment:     6,044     7,178     6,698     5,782     5,920  
    Loans over 90 days past due                                
    and still accruing     268     489     460     248     1,951  
    Total nonperforming loans     6,312     7,667     7,158     6,030     7,871  
    Foreclosed assets     —     —     —     —     —  
    Total nonperforming assets   $ 6,312   $ 7,667   $ 7,158   $ 6,030   $ 7,871  
    Net charge-offs during the quarter   $ 965   $ 197   $ 288   $ 405   $ 254  
    Provision for credit losses on loans during the quarter   $ 274   $ 1,331   $ 153   $ 471   $ 184  
    Allowance for credit losses on loans   $ 48,262   $ 48,953   $ 47,819   $ 47,954   $ 47,888  
    Classified assets   $ 40,034   $ 41,661   $ 32,609   $ 33,605   $ 35,392  
    Allowance for credit losses on loans to total loans     1.38 %   1.40 %   1.40 %   1.42 %   1.44 %
    Allowance for credit losses on loans to total nonperforming loans     764.61 %   638.49 %   668.05 %   795.26 %   608.41 %
    Nonperforming assets to total assets     0.11 %   0.14 %   0.13 %   0.11 %   0.15 %
    Nonperforming loans to total loans     0.18 %   0.22 %   0.21 %   0.18 %   0.24 %
    Classified assets to Heritage Commerce Corp                                
    Tier 1 capital plus allowance for credit losses on loans     7 %   7 %   6 %   6 %   6 %
    Classified assets to Heritage Bank of Commerce                                
    Tier 1 capital plus allowance for credit losses on loans     7 %   7 %   6 %   6 %   6 %
                                     
    OTHER PERIOD-END STATISTICS                                     
    (in $000’s, unaudited)                                     
    Heritage Commerce Corp:                                
    Tangible common equity (1)   $ 522,573   $ 515,657   $ 510,755   $ 504,047   $ 500,591  
    Shareholders’ equity / total assets     12.63 %   12.22 %   12.35 %   12.91 %   12.87 %
    Tangible common equity / tangible assets (1)     9.78 %   9.43 %   9.50 %   9.91 %   9.85 %
    Loan to deposit ratio     74.45 %   72.45 %   72.11 %   76.04 %   75.06 %
    Noninterest-bearing deposits / total deposits     24.10 %   25.19 %   26.90 %   26.71 %   27.94 %
    Total capital ratio     15.9 %   15.6 %   15.6 %   15.6 %   15.6 %
    Tier 1 capital ratio     13.6 %   13.4 %   13.4 %   13.4 %   13.4 %
    Common Equity Tier 1 capital ratio     13.6 %   13.4 %   13.4 %   13.4 %   13.4 %
    Tier 1 leverage ratio     9.8 %   9.6 %   10.0 %   10.2 %   10.2 %
    Heritage Bank of Commerce:                                
    Tangible common equity / tangible assets (1)     10.15 %   9.79 %   9.86 %   10.28 %   10.22 %
    Total capital ratio     15.4 %   15.1 %   15.1 %   15.1 %   15.1 %
    Tier 1 capital ratio     14.1 %   13.9 %   13.9 %   13.9 %   13.9 %
    Common Equity Tier 1 capital ratio     14.1 %   13.9 %   13.9 %   13.9 %   13.9 %
    Tier 1 leverage ratio     10.2 %   10.0 %   10.4 %   10.6 %   10.6 %
                                     

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

                                       
        For the Quarter Ended   For the Quarter Ended  
        March 31, 2025   December 31, 2024  
                    Interest      Average               Interest      Average  
    NET INTEREST INCOME AND NET INTEREST MARGIN   Average   Income/   Yield/   Average   Income/   Yield/  
    (in $000’s, unaudited)   Balance   Expense   Rate   Balance   Expense   Rate  
    Assets:                                  
    Loans, core bank   $ 2,945,072       39,758     5.47 % $ 2,899,347     $ 39,852     5.47 %
    Prepayment fees     —       224     0.03 %   —       35     0.00 %
    Bay View Funding factored receivables     60,250       2,942     19.80 %   59,153       3,084     20.74 %
    Purchased residential mortgages     427,963       3,597     3.41 %   434,846       3,732     3.41 %
    Loan fair value mark / accretion     (1,981 )     181     0.02 %   (2,357 )     429     0.06 %
    Loans, gross (1)(2)     3,431,304       46,702     5.52 %   3,390,989       47,132     5.53 %
    Securities – taxable     876,092       5,559     2.57 %   800,174       4,475     2.22 %
    Securities – exempt from Federal tax (3)     30,480       275     3.66 %   30,570       274     3.57 %
    Other investments and interest-bearing deposits                                  
    in other financial institutions     850,441       9,354     4.46 %   1,014,253       12,220     4.79 %
    Total interest earning assets (3)     5,188,317       61,890     4.84 %   5,235,986       64,101     4.87 %
    Cash and due from banks     31,869                 32,569              
    Premises and equipment, net     10,007                 10,301              
    Goodwill and other intangible assets     173,895                 174,401              
    Other assets     155,808                 154,583              
    Total assets   $ 5,559,896               $ 5,607,840              
                                       
    Liabilities and shareholders’ equity:                                  
    Deposits:                                  
    Demand, noninterest-bearing   $ 1,167,330               $ 1,222,393              
                                       
    Demand, interest-bearing     944,375       1,438     0.62 %   906,581       1,452     0.64 %
    Savings and money market     1,323,038       8,073     2.47 %   1,339,397       9,090     2.70 %
    Time deposits – under $100     11,383       47     1.67 %   11,388       49     1.71 %
    Time deposits – $100 and over     234,421       2,129     3.68 %   234,446       2,310     3.92 %
    ICS/CDARS – interest-bearing demand, money market                                  
    and time deposits     1,036,970       6,248     2.44 %   1,057,286       7,009     2.64 %
    Total interest-bearing deposits     3,550,187       17,935     2.05 %   3,549,098       19,910     2.23 %
    Total deposits     4,717,517       17,935     1.54 %   4,771,491       19,910     1.66 %
                                       
    Short-term borrowings     18       —     0.00 %   28       —     0.00 %
    Subordinated debt, net of issuance costs     39,667       537     5.49 %   39,629       538     5.40 %
    Total interest-bearing liabilities     3,589,872       18,472     2.09 %   3,588,755       20,448     2.27 %
    Total interest-bearing liabilities and demand,                                  
    noninterest-bearing / cost of funds     4,757,202       18,472     1.57 %   4,811,148       20,448     1.69 %
    Other liabilities     109,961                 110,429              
    Total liabilities     4,867,163                 4,921,577              
    Shareholders’ equity     692,733                 686,263              
    Total liabilities and shareholders’ equity   $ 5,559,896               $ 5,607,840              
                                       
    Net interest income / margin (3)           43,418     3.39 %         43,653     3.32 %
    Less tax equivalent adjustment (3)           (58 )               (58 )      
    Net interest income         $ 43,360     3.39 %       $ 43,595     3.31 %
                                       

    (1)Includes loans held-for-sale. Nonaccrual loans are included in average balances.
    (2)Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $214,000 for the first quarter of 2025, compared to $167,000 for the fourth quarter of 2024. Prepayment fees totaled $224,000 for the first quarter of 2025, compared to $35,000 for the fourth quarter of 2024.
    (3)Reflects the FTE adjustment for Federal tax-exempt income based on a 21% tax rate. This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

                                       
        For the Quarter Ended   For the Quarter Ended  
        March 31, 2025   March 31, 2024  
                    Interest      Average               Interest      Average  
    NET INTEREST INCOME AND NET INTEREST MARGIN   Average   Income/   Yield/   Average   Income/   Yield/  
    (in $000’s, unaudited)   Balance   Expense   Rate   Balance   Expense   Rate  
    Assets:                                  
    Loans, core bank   $ 2,945,072     $ 39,758     5.47 % $ 2,795,351     $ 37,721     5.43 %
    Prepayment fees     —       224     0.03 %   —       24     0.00 %
    Bay View Funding factored receivables     60,250       2,942     19.80 %   53,511       2,838     21.33 %
    Purchased residential mortgages     427,963       3,597     3.41 %   454,240       3,788     3.35 %
    Loan fair value mark / accretion     (1,981 )     181     0.02 %   (3,113 )     229     0.03 %
    Loans, gross (1)(2)     3,431,304       46,702     5.52 %   3,299,989       44,600     5.44 %
    Securities – taxable     876,092       5,559     2.57 %   1,042,484       6,183     2.39 %
    Securities – exempt from Federal tax (3)     30,480       275     3.66 %   31,939       286     3.60 %
    Other investments and interest-bearing deposits                                  
    in other financial institutions     850,441       9,354     4.46 %   436,093       5,951     5.49 %
    Total interest earning assets (3)     5,188,317       61,890     4.84 %   4,810,505       57,020     4.77 %
    Cash and due from banks     31,869                 33,214              
    Premises and equipment, net     10,007                 10,015              
    Goodwill and other intangible assets     173,895                 176,039              
    Other assets     155,808                 148,863              
    Total assets   $ 5,559,896               $ 5,178,636              
                                       
    Liabilities and shareholders’ equity:                                  
    Deposits:                                  
    Demand, noninterest-bearing   $ 1,167,330               $ 1,177,078              
                                       
    Demand, interest-bearing     944,375       1,438     0.62 %   920,048       1,554     0.68 %
    Savings and money market     1,323,038       8,073     2.47 %   1,067,581       6,649     2.50 %
    Time deposits – under $100     11,383       47     1.67 %   10,945       42     1.54 %
    Time deposits – $100 and over     234,421       2,129     3.68 %   221,211       2,064     3.75 %
    ICS/CDARS – interest-bearing demand, money market                                  
    and time deposits     1,036,970       6,248     2.44 %   963,287       6,611     2.76 %
    Total interest-bearing deposits     3,550,187       17,935     2.05 %   3,183,072       16,920     2.14 %
    Total deposits     4,717,517       17,935     1.54 %   4,360,150       16,920     1.56 %
                                       
    Short-term borrowings     18       —     0.00 %   15       —     0.00 %
    Subordinated debt, net of issuance costs     39,667       537     5.49 %   39,516       538     5.48 %
    Total interest-bearing liabilities     3,589,872       18,472     2.09 %   3,222,603       17,458     2.18 %
    Total interest-bearing liabilities and demand,                                  
    noninterest-bearing / cost of funds     4,757,202       18,472     1.57 %   4,399,681       17,458     1.60 %
    Other liabilities     109,961                 106,663              
    Total liabilities     4,867,163                 4,506,344              
    Shareholders’ equity     692,733                 672,292              
    Total liabilities and shareholders’ equity   $ 5,559,896               $ 5,178,636              
                                       
    Net interest income / margin (3)           43,418     3.39 %         39,562     3.31 %
    Less tax equivalent adjustment (3)           (58 )               (60 )      
    Net interest income         $ 43,360     3.39 %       $ 39,502     3.30 %

    (1)Includes loans held-for-sale. Nonaccrual loans are included in average balances.
    (2)Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $214,000 for the first quarter of 2025, compared to $160,000 for the first quarter of 2024. Prepayment fees totaled $224,000 for the first quarter of 2025, compared to $24,000 for the first quarter of 2024.
    (3)Reflects the FTE adjustment for Federal tax-exempt income based on a 21% tax rate. This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

    Management considers tangible book value per share as a useful measurement of the Company’s equity. The Company references the return on average tangible common equity and the return on average tangible assets as measurements of profitability.

    The following table summarizes components of the tangible book value per share at the dates indicated:

                                     
    TANGIBLE BOOK VALUE PER SHARE   March 31,    December 31,    September 30,   June 30,   March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Capital components:                                
    Total Equity (GAAP)   $ 696,190     $ 689,727     $ 685,352     $ 679,199     $ 676,296    
    Less: Preferred Stock     —       —       —       —       —    
    Total Common Equity     696,190       689,727       685,352       679,199       676,296    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (5,986 )     (6,439 )     (6,966 )     (7,521 )     (8,074 )  
    Total Tangible Common Equity (non-GAAP)   $ 522,573     $ 515,657     $ 510,755     $ 504,047     $ 500,591    
                                     
    Common shares outstanding at period-end     61,611,121       61,348,095       61,297,344       61,292,094       61,253,625    
                                     
    Tangible book value per share (non-GAAP)   $ 8.48     $ 8.41     $ 8.33     $ 8.22     $ 8.17    
                                               

    The following tables summarize components of the annualized return on average tangible common equity and the annualized return on average tangible assets for the periods indicated:

                                     
    RETURN ON AVERAGE TANGIBLE COMMON   For the Quarter Ended:  
    EQUITY AND AVERAGE TANGIBLE COMMON ASSETS   March 31,    December 31,    September 30,   June 30,   March 31,   
    (in $000’s, unaudited)   2025   2024     2024    2024   2024  
    Net income   $ 11,626     $ 10,621     $ 10,507     $ 9,234     $ 10,166    
                                     
    Average tangible common equity components:                                
    Average Equity (GAAP)   $ 692,733     $ 686,263     $ 680,404     $ 675,108     $ 672,292    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (6,264 )     (6,770 )     (7,322 )     (7,867 )     (8,408 )  
    Total Average Tangible Common Equity (non-GAAP)   $ 518,838     $ 511,862     $ 505,451     $ 499,610     $ 496,253    
                                     
    Annualized return on average tangible common equity (non-GAAP)     9.09   %   8.25   %   8.27   %   7.43   %   8.24   %
                                     
    Average tangible assets components:                                
    Average Assets (GAAP)   $ 5,559,896     $ 5,607,840     $ 5,352,067     $ 5,213,171     $ 5,178,636    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (6,264 )     (6,770 )     (7,322 )     (7,867 )     (8,408 )  
    Total Average Tangible Assets (non-GAAP)   $ 5,386,001     $ 5,433,439     $ 5,177,114     $ 5,037,673     $ 5,002,597    
                                     
    Annualized return on average tangible assets (non-GAAP)     0.88   %   0.78   %   0.81   %   0.74   %   0.82   %
                                               

    Management reviews yields on certain asset categories and the net interest margin of the Company on an FTE basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. The following tables summarize components of FTE net interest income of the Company for the periods indicated:

                                     
        For the Quarter Ended:  
        March 31,    December 31,    September 30,    June 30,    March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Net interest income before                                
    credit losses on loans (GAAP)   $ 43,360   $ 43,595   $ 39,329   $ 38,867   $ 39,502  
    Tax-equivalent adjustment on securities –                                
    exempt from Federal tax     58     58     59     60     60  
    Net interest income, FTE (non-GAAP)   $ 43,418   $ 43,653   $ 39,388   $ 38,927   $ 39,562  
                                     
    Average balance of total interest earning assets   $ 5,188,317   $ 5,235,986   $ 4,980,082   $ 4,840,670   $ 4,810,505  
                                     
    Net interest margin (annualized net interest income divided by the                                
    average balance of total interest earnings assets) (GAAP)     3.39 %   3.31 %   3.14 %   3.23 %   3.30 %
                                     
    Net interest margin, FTE (annualized net interest income, FTE,                                
    divided by the average balance of total                                
    earnings assets) (non-GAAP)     3.39 %   3.32 %   3.15 %   3.23 %   3.31 %
                                     

    Management views its non-GAAP PPNR as a key metric for assessing the Company’s earnings power. The following table summarizes the components of PPNR for the periods indicated:

                                   
        For the Quarter Ended:
        March 31,    December 31,    September 30,   June 30,   March 31, 
    (in $000’s, unaudited)   2025   2024   2024   2024   2024
                                   
                                   
    Net interest income before credit losses on loans   $ 43,360     $ 43,595     $ 39,329     $ 38,867     $ 39,502  
    Noninterest income     2,696       2,775       2,826       2,864       2,638  
    Total revenue     46,056       46,370     $ 42,155     $ 41,731     $ 42,140  
    Less: Noninterest expense     (29,456 )     (30,304 )     (27,555 )     (28,188 )     (27,536 )
    PPNR (non-GAAP)   $ 16,600     $ 16,066     $ 14,600     $ 13,543     $ 14,604  
                                             

    The efficiency ratio is a non-GAAP financial measure, which is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income), and measures how much it costs to produce one dollar of revenue. The following tables summarize components of the efficiency ratio of the Company for the periods indicated:

                                     
        For the Quarter Ended:  
        March 31,    December 31,    September 30,   June 30,   March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Noninterest expense   $ 29,456   $ 30,304   $ 27,555   $ 28,188   $ 27,536  
                                     
    Net interest income before credit losses on loans   $ 43,360   $ 43,595   $ 39,329   $ 38,867   $ 39,502  
    Noninterest income     2,696     2,775     2,826     2,864     2,638  
    Total revenue   $ 46,056   $ 46,370   $ 42,155   $ 41,731   $ 42,140  
                                     
    Efficiency ratio (noninterest expense divided                                
    by total revenue) (non-GAAP)     63.96 %   65.35 %   65.37 %   67.55 %   65.34 %
                                     

    Management considers the tangible common equity ratio as a useful measurement of the Company’s and the Bank’s equity. The following table summarizes components of the tangible common equity to tangible assets ratio of the Company at the dates indicated:

                                     
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS   March 31,    December 31,    September 30,      June 30,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024   
    Capital components:                                
    Total Equity (GAAP)   $ 696,190     $ 689,727     $ 685,352     $ 679,199     $ 676,296    
    Less: Preferred Stock     —       —       —       —       —    
    Total Common Equity     696,190       689,727       685,352       679,199       676,296    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (5,986 )     (6,439 )     (6,966 )     (7,521 )     (8,074 )  
    Total Tangible Common Equity (non-GAAP)   $ 522,573     $ 515,657     $ 510,755     $ 504,047     $ 500,591    
                                     
    Asset components:                                
    Total Assets (GAAP)   $ 5,514,255     $ 5,645,006     $ 5,551,596     $ 5,263,024     $ 5,256,074    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (5,986 )     (6,439 )     (6,966 )     (7,521 )     (8,074 )  
    Total Tangible Assets (non-GAAP)   $ 5,340,638     $ 5,470,936     $ 5,376,999     $ 5,087,872     $ 5,080,369    
                                     
    Tangible common equity / tangible assets (non-GAAP)     9.78   %   9.43   %   9.50   %   9.91   %   9.85   %
                                               

    The following table summarizes components of the tangible common equity to tangible assets ratio of the Bank at the dates indicated:

                                     
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS   March 31,    December 31,    September 30,      June 30,    March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Capital components:                                
    Total Equity (GAAP)   $ 715,605     $ 709,379     $ 704,585     $ 697,964     $ 694,543    
    Less: Preferred Stock     —       —       —       —       —    
    Total Common Equity     715,605       709,379       704,585       697,964       694,543    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (5,986 )     (6,439 )     (6,966 )     (7,521 )     (8,074 )  
    Total Tangible Common Equity (non-GAAP)   $ 541,988     $ 535,309     $ 529,988     $ 522,812     $ 518,838    
                                     
    Asset components:                                
    Total Assets (GAAP)   $ 5,512,160     $ 5,641,646     $ 5,548,576     $ 5,260,500     $ 5,254,044    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (5,986 )     (6,439 )     (6,966 )     (7,521 )     (8,074 )  
    Total Tangible Assets (non-GAAP)   $ 5,338,543     $ 5,467,576     $ 5,373,979     $ 5,085,348     $ 5,078,339    
                                     
    Tangible common equity / tangible assets (non-GAAP)     10.15   %   9.79   %   9.86   %   10.28   %   10.22   %
                                               

    The MIL Network –

  • MIL-OSI: OceanFirst Financial Corp. Announces First Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    RED BANK, N.J., April 24, 2025 (GLOBE NEWSWIRE) — OceanFirst Financial Corp. (NASDAQ:OCFC) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $20.5 million, or $0.35 per diluted share, for the quarter ended March 31, 2025, a decrease from $27.7 million, or $0.47 per diluted share, for the corresponding prior year period, and a decrease from $20.9 million, or $0.36 per diluted share, for the linked quarter. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):

        For the Three Months Ended,
        March 31,   December 31,   March 31,
    Performance Ratios (Annualized):   2025   2024   2024
    Return on average assets   0.62 %   0.61 %   0.82 %
    Return on average stockholders’ equity   4.85     4.88     6.65  
    Return on average tangible stockholders’ equity (a)   7.05     7.12     9.61  
    Return on average tangible common equity (a)   7.40     7.47     10.09  
    Efficiency ratio   65.67     67.86     59.56  
    Net interest margin   2.90     2.69     2.81  

    (a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”) are non-GAAP (“generally accepted accounting principles”) financial measures. Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and “Non-GAAP Reconciliation” tables for reconciliation and additional information regarding non-GAAP financial measures.

    Core earnings1 for the quarter ended March 31, 2025 were $20.3 million, or $0.35 per diluted share, a decrease from $25.6 million, or $0.44 per diluted share, for the corresponding prior year period, and a decrease from $22.1 million, or $0.38 per diluted share, for the linked quarter.

    Core earnings PTPP1 for the quarter ended March 31, 2025 was $32.4 million, or $0.56 per diluted share, as compared to $36.2 million, or $0.62 per diluted share, for the corresponding prior year period, and $29.6 million, or $0.51 per diluted share, for the linked quarter. Selected performance metrics are as follows:

        For the Three Months Ended,
        March 31,   December 31,   March 31,
    Core Ratios1 (Annualized):     2025       2024       2024  
    Return on average assets     0.62 %     0.65 %     0.76 %
    Return on average tangible stockholders’ equity     7.00       7.51       8.91  
    Return on average tangible common equity     7.34       7.89       9.36  
    Efficiency ratio     65.81       67.74       61.05  
    Core diluted earnings per share   $ 0.35     $ 0.38     $ 0.44  
    Core PTPP diluted earnings per share     0.56       0.51       0.62  

    Key developments for the recent quarter are described below:

    • Margin Expansion: Net interest margin increased 21 basis points to 2.90%, from 2.69%, and net interest income increased by $3.3 million to $86.7 million driven by a decrease in total cost of deposits to 2.06% from 2.32% in the linked quarter.
    • Commercial Loans: Commercial and industrial loans increased $95.1 million, or 6.1% as compared to the linked quarter. Additionally, the total commercial loan pipeline increased 90% to $375.6 million from $197.5 million in the linked quarter.
    • Provision for Credit Losses: Provision for credit losses was $5.3 million reflecting a net loan reserve build of $5.2 million, primarily driven by elevated uncertainty around macroeconomic conditions. This resulted in an increase of five basis points in the allowance for loan credit losses to total loans to 0.78%. Criticized and classified loans decreased by 5% to $149.3 million compared to the linked quarter, providing strong evidence of stable credit performance for the Company’s loan portfolio.

    Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to present our current quarter results, which reflect a meaningful expansion of net interest income and net interest margin, continued strong asset quality metrics, and further capital accretion, including share repurchases.” Mr. Maher added, “Additionally, we understand the increased market uncertainty and volatility, but we have confidence that the Company is well-positioned. Finally, we are pleased that the first quarter talent recruiting season has resulted in a robust addition of commercial banking talent. Reflecting the strength of the commercial banking platform we have built, 36 highly experienced commercial bankers have joined OceanFirst this year.”

    The Company’s Board of Directors declared its 113th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on May 16, 2025 to common stockholders of record on May 5, 2025. The Company’s Board of Directors also previously declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on May 15, 2025 to preferred stockholders of record on April 30, 2025. The Company has notified the preferred stockholders that it intends to redeem the Series A Preferred Stock in full on May 15, 2025.

    1 Core earnings and core earnings before income taxes and provision for credit losses (“PTPP” or “Pre-Tax-Pre-Provision”), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net (gain) loss on equity investments, net gain on sale of trust business, the opening provision for credit losses in connection with the acquisition of Spring Garden Capital Group, LLC (“Spring Garden”), the Federal Deposit Insurance Corporation (“FDIC”) special assessment, and the income tax effect of these items, (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and provision for credit losses (exclusive of the Spring Garden opening provision). Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.

    Results of Operations

    The current quarter was impacted by a decrease in average interest earning assets and liabilities, benefited from funding cost repricing efforts, and included a sale of non-performing residential and consumer loans of $5.1 million, which had related charge-offs of $720,000. Additionally, the current quarter included non-recurring benefits of $842,000 in other income and $1.3 million in normal incentive related adjustments.

    Net Interest Income and Margin

    Three months ended March 31, 2025 vs. March 31, 2024

    Net interest income increased to $86.7 million, from $86.2 million, primarily reflecting the net impact of the decreasing interest rate environment. Net interest margin increased to 2.90%, from 2.81%, which included the impact of purchase accounting accretion and prepayment fees of 0.03% and 0.04%, respectively. Net interest margin increased primarily due to the decrease in cost of funds outpacing the decrease in yield on average interest-earning assets.

    Average interest-earning assets decreased by $238.4 million primarily due to a decrease in commercial loans and securities. The average yield for interest-earning assets decreased to 5.13%, from 5.26%.

    The cost of average interest-bearing liabilities decreased to 2.78%, from 3.03%, primarily due to lower cost of deposits and, to a lesser extent, Federal Home Loan Bank (“FHLB”) advances. The total cost of deposits decreased 25 basis points to 2.06%, from 2.31%. Average interest-bearing liabilities decreased by $226.1 million, primarily due to decreases in savings, time deposits and other borrowings, largely offset by an increase in FHLB advances.

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

    Net interest income increased by $3.3 million and net interest margin increased to 2.90%, from 2.69%, primarily reflecting the impact of deposit repricing. Net interest income included the impact of purchase accounting accretion and prepayment fees of 0.03% in the current quarter and none in the prior quarter.

    Average interest-earning assets decreased by $219.5 million, primarily due to decreases in securities and interest-earning cash deposits. The yield on average interest-earning assets decreased to 5.13%, from 5.15%.

    Average interest-bearing liabilities decreased by $211.3 million, primarily due to decreases in deposits and other borrowings, partly offset by an increase in FHLB advances. The total cost of average interest-bearing liabilities decreased to 2.78%, from 3.04%, primarily due to lower cost of deposits. The total cost of deposits decreased to 2.06%, from 2.32%.

    Provision for Credit Losses

    Provision for credit losses for the quarter ended March 31, 2025 was $5.3 million, as compared to $591,000 for the corresponding prior year period and $3.5 million for the linked quarter. The linked quarter included a $1.4 million initial provision for credit losses related to the acquisition of Spring Garden. The current quarter provision was primarily driven by elevated uncertainty around macroeconomic conditions.

    Net loan charge-offs were $636,000 for the quarter ended March 31, 2025, as compared to net loan charge-offs of $349,000 for the corresponding prior year period and net loan recoveries of $158,000 in the linked quarter. The current quarter includes charge-offs of $720,000 related to the sale of $5.1 million non-performing residential and consumer loans. Refer to “Results of Operations” section for further discussion.

    Non-interest Income

    Three months ended March 31, 2025 vs. March 31, 2024

    Other income decreased to $11.3 million, as compared to $12.3 million. Other income was favorably impacted by non-core operations of $205,000 related to net gains on equity investments in the current quarter. The prior year other income was favorably impacted by non-core operations of $3.1 million related to net gains on equity investments and a gain on sale of a portion of the Company’s trust business.

    Excluding non-core operations, other income increased by $1.8 million. The primary drivers were increases related to net gain on sale of loans of $501,000, commercial loan swap income of $482,000, and an increase in non-recurring other income of $842,000 as noted above.

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

    Excluding non-core operations, other income decreased by $1.2 million from $12.2 million in the linked quarter. The primary drivers were decreases in fees and service charges of $1.5 million, primarily due to lower title fee income as a result of seasonality, and income from bank owned life insurance of $686,000, related to non-recurring death benefits of $768,000 in the linked quarter. This was partly offset by increases in commercial loan swap income of $534,000 and non-recurring other income of $842,000 noted above.

    Non-interest Expense

    Three months ended March 31, 2025 vs. March 31, 2024

    Operating expenses increased to $64.3 million, as compared to $58.7 million. Operating expenses in the prior year were adversely impacted by non-core operations of $418,000 from an FDIC special assessment.

    Excluding non-core operations, operating expenses increased by $6.0 million. The primary driver was an increase in compensation and benefits of $4.0 million, mostly due to acquisitions at the end of the prior year and annual merit increases. Additional drivers were increases in other operating expenses of $1.0 million, due to additional loan servicing expense, and increases in data processing expense of $691,000, partly due to acquisitions at the end of the prior year.

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

    Operating expenses in the linked quarter were $64.8 million and were adversely impacted by non-core items of $110,000 from merger-related expenses. Excluding non-core operations, operating expenses decreased by $445,000. This included a decrease in normal incentive related adjustments of $1.3 million, offset by annual merit increases during the year. Additionally, there were decreases in other operating expense of $840,000, mostly related to lower title costs and marketing of $507,000. This was partly offset by an increase in federal deposit insurance and regulatory assessments of $466,000.

    Income Tax Expense

    The provision for income taxes was $6.8 million for the quarter ended March 31, 2025, as compared to $10.6 million for the same prior year period and $5.1 million for the linked quarter. The effective tax rate was 24.1% for the quarter ended March 31, 2025, as compared to 27.1% for the same prior year period and 18.7% for the linked quarter. The prior year’s effective tax rate was negatively impacted by 3.0% due to a one-time write-off of a deferred tax asset of $1.2 million. The linked quarter’s effective tax rate was positively impacted by utilization of higher tax credits.

    Financial Condition

    March 31, 2025 vs. December 31, 2024

    Total assets decreased by $112.0 million to $13.31 billion, from $13.42 billion, primarily due to decreases in total debt securities. Debt securities available-for-sale decreased by $81.3 million to $746.2 million, from $827.5 million, primarily due to principal reductions, maturities and calls. Debt securities held-to-maturity decreased by $40.4 million to $1.01 billion, from $1.05 billion, primarily due to principal repayments. Loans held-for-sale decreased by $11.5 million to $9.7 million from $21.2 million. Total loans increased by $7.2 million to $10.13 billion, from $10.12 billion, while the loan pipeline increased by $197.8 million to $504.4 million, from $306.7 million. Other assets decreased by $14.9 million to $170.8 million, from $185.7 million, primarily due to a decrease in market values associated with customer interest rate swap programs.

    Total liabilities decreased by $118.3 million to $11.60 billion, from $11.72 billion primarily related to a funding mix-shift. Deposits increased by $110.7 million to $10.18 billion, from $10.07 billion, primarily due to increases in non-interest bearing, savings and time deposits. Time deposits increased to $2.12 billion, from $2.08 billion, representing 20.8% and 20.7% of total deposits, respectively. Time deposits included an increase in brokered time deposits of $295.8 million, offset by a decrease in retail time deposits of $251.1 million. The loan-to-deposit ratio was 99.5%, as compared to 100.5%. FHLB advances decreased by $181.6 million to $891.0 million, from $1.07 billion partly driven by a shift to slightly favorably priced brokered deposits.

    Other liabilities decreased by $58.0 million to $240.4 million, from $298.4 million, primarily due to a decrease in the market values of derivatives associated with customer interest rate swaps and related collateral received from counterparties.

    Capital levels remain strong and in excess of “well-capitalized” regulatory levels at March 31, 2025, including the Company’s estimated common equity tier one capital ratio which remained at 11.2%.

    Total stockholders’ equity increased to $1.71 billion, as compared to $1.70 billion, primarily reflecting net income, partially offset by capital returns comprising of dividends and share repurchases. During the quarter ended March 31, 2025, the Company repurchased 398,395 shares totaling $6.9 million representing a weighted average cost of $17.20. The Company had 1,228,863 shares available for repurchase under the authorized repurchase program. Additionally, accumulated other comprehensive loss decreased by $2.6 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.

    The Company’s tangible common equity2 increased by $7.3 million to $1.12 billion. The Company’s stockholders’ equity to assets ratio was 12.84% at March 31, 2025, and tangible common equity to tangible assets ratio increased by 14 basis points during the quarter to 8.76%, primarily due to the drivers described above.

    Book value per common share increased to $29.27, as compared to $29.08. Tangible book value per common share2 increased to $19.16, as compared to $18.98.

    2 Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures and exclude the impact of intangible assets, goodwill, and preferred equity from both stockholders’ equity and total assets. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.

    Asset Quality

    March 31, 2025 vs. December 31, 2024

    The Company’s non-performing loans increased to $37.0 million, from $35.5 million, and represented 0.37% and 0.35% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 213.14%, as compared to 207.19%. The level of 30 to 89 days delinquent loans increased to $46.2 million, from $36.6 million, primarily related to commercial loans. Criticized and classified assets, including other real estate owned, decreased to $151.2 million, from $159.9 million. The Company’s allowance for loan credit losses was 0.78% of total loans, as compared to 0.73%. Refer to “Provision for Credit Losses” section for further discussion.

    The Company’s asset quality, excluding purchased with credit deterioration (“PCD”) loans, was as follows. Non-performing loans increased to $29.2 million, from $27.6 million. The allowance for loan credit losses as a percentage of total non-performing loans was 269.43%, as compared to 266.73%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, increased to $35.8 million, from $33.6 million.

    Explanation of Non-GAAP Financial Measures

    Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, all of which can vary from period to period, provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.

    Annual Meeting

    The Company previously announced that its Annual Meeting of Stockholders will be held on Monday, May 19, 2025 at 8:00 a.m. Eastern Time. The record date for stockholders to vote at the Annual Meeting is Tuesday, March 25, 2025. Voting before the meeting is encouraged, even for stockholders planning to participate in the virtual webcast. Votes may be submitted by telephone or online according to the instructions on the proxy card or by mail. A link to the live webcast is available by visiting oceanfirst.com – Investor Relations. Access will begin at 7:45 a.m. Eastern Time to allow time for stockholders to log-in with the control number provided on the proxy card prior to the 8:00 a.m. Eastern Time scheduled start. Eligible stockholders may also vote during the live meeting online at www.virtualshareholdermeeting.com/OCFC2025 by entering the 16-digit control number included on the proxy card or notice. As a reminder, participants of the meeting are not required to vote. Additional information regarding virtual access to the meeting will be distributed prior to the meeting.

    Conference Call

    As previously announced, the Company will host an earnings conference call on Friday, April 25, 2025 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 934356. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (855) 762-8306, from one hour after the end of the call until May 2, 2025. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.

    OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.3 billion regional bank providing financial services throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com. 

    Forward-Looking Statements

    In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project”, “will”, “should”, “may”, “view”, “opportunity”, “potential”, or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, including potential recessionary conditions, levels of unemployment in the Company’s lending area, real estate market values in the Company’s lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the imposition of tariffs or other domestic or international governmental policies, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company’s deposit portfolio, and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the impact of pandemics on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, under Item 1A – Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

     
    OceanFirst Financial Corp.
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (dollars in thousands)
     
        March 31,   December 31,   March 31,
          2025       2024       2024  
        (Unaudited)       (Unaudited)
    Assets            
    Cash and due from banks   $ 163,721     $ 123,615     $ 130,422  
    Debt securities available-for-sale, at estimated fair value     746,168       827,500       744,944  
    Debt securities held-to-maturity, net of allowance for securities credit losses of $898 at March 31, 2025, $967 at December 31, 2024, and $1,058 at March 31, 2024 (estimated fair value of $926,075 at March 31, 2025, $952,917 at December 31, 2024, and $1,029,965 at March 31, 2024)     1,005,476       1,045,875       1,128,666  
    Equity investments     87,365       84,104       103,201  
    Restricted equity investments, at cost     102,172       108,634       85,689  
    Loans receivable, net of allowance for loan credit losses of $78,798 at March 31, 2025, $73,607 at December 31, 2024, and $67,173 at March 31, 2024     10,058,072       10,055,429       10,068,209  
    Loans held-for-sale     9,698       21,211       4,702  
    Interest and dividends receivable     44,843       45,914       52,502  
    Other real estate owned     1,917       1,811       —  
    Premises and equipment, net     114,588       115,256       119,211  
    Bank owned life insurance     269,398       270,208       266,615  
    Assets held for sale     —       —       28  
    Goodwill     523,308       523,308       506,146  
    Intangibles     11,740       12,680       8,669  
    Other assets     170,812       185,702       199,974  
    Total assets   $ 13,309,278     $ 13,421,247     $ 13,418,978  
    Liabilities and Stockholders’ Equity            
    Deposits   $ 10,177,023     $ 10,066,342     $ 10,236,851  
    Federal Home Loan Bank advances     891,021       1,072,611       658,436  
    Securities sold under agreements to repurchase with customers     65,132       60,567       66,798  
    Other borrowings     197,808       197,546       425,722  
    Advances by borrowers for taxes and insurance     28,789       23,031       28,187  
    Other liabilities     240,388       298,393       337,147  
    Total liabilities     11,600,161       11,718,490       11,753,141  
    Stockholders’ equity:            
    OceanFirst Financial Corp. stockholders’ equity     1,708,322       1,701,650       1,665,112  
    Non-controlling interest     795       1,107       725  
    Total stockholders’ equity     1,709,117       1,702,757       1,665,837  
    Total liabilities and stockholders’ equity   $ 13,309,278     $ 13,421,247     $ 13,418,978  
    OceanFirst Financial Corp.
    CONSOLIDATED STATEMENTS OF INCOME
    (in thousands, except per share amounts)
     
        For the Three Months Ended,
        March 31,   December 31,   March 31,
          2025       2024       2024  
        |———————- (Unaudited) ———————-|
    Interest income:            
    Loans   $ 133,019     $ 135,438     $ 137,121  
    Debt securities     17,270       19,400       19,861  
    Equity investments and other     3,414       4,782       4,620  
    Total interest income     153,703       159,620       161,602  
    Interest expense:            
    Deposits     51,046       59,889       59,855  
    Borrowed funds     16,005       16,402       15,523  
    Total interest expense     67,051       76,291       75,378  
    Net interest income     86,652       83,329       86,224  
    Provision for credit losses     5,340       3,467       591  
    Net interest income after provision for credit losses     81,312       79,862       85,633  
    Other income:            
    Bankcard services revenue     1,463       1,595       1,416  
    Trust and asset management revenue     406       416       526  
    Fees and service charges     4,712       6,207       4,473  
    Net gain on sales of loans     858       1,076       357  
    Net gain (loss) on equity investments     205       (5 )     1,923  
    Net loss from other real estate operations     (16 )     (20 )     —  
    Income from bank owned life insurance     1,852       2,538       1,862  
    Commercial loan swap income     620       86       138  
    Other     1,153       339       1,591  
    Total other income     11,253       12,232       12,286  
    Operating expenses:            
    Compensation and employee benefits     36,740       36,602       32,759  
    Occupancy     5,497       5,280       5,199  
    Equipment     921       1,026       1,130  
    Marketing     1,108       1,615       990  
    Federal deposit insurance and regulatory assessments     2,983       2,517       3,135  
    Data processing     6,647       6,366       5,956  
    Check card processing     1,170       1,134       1,050  
    Professional fees     2,425       2,620       2,732  
    Amortization of intangibles     940       876       844  
    Merger related expenses     —       110       —  
    Other operating expense     5,863       6,703       4,877  
    Total operating expenses     64,294       64,849       58,672  
    Income before provision for income taxes     28,271       27,245       39,247  
    Provision for income taxes     6,808       5,083       10,637  
    Net income     21,463       22,162       28,610  
    Net (loss) income attributable to non-controlling interest     (46 )     253       (57 )
    Net income attributable to OceanFirst Financial Corp.     21,509       21,909       28,667  
    Dividends on preferred shares     1,004       1,004       1,004  
    Net income available to common stockholders   $ 20,505     $ 20,905     $ 27,663  
    Basic earnings per share   $ 0.35     $ 0.36     $ 0.47  
    Diluted earnings per share   $ 0.35     $ 0.36     $ 0.47  
    Average basic shares outstanding     58,102       58,026       58,789  
    Average diluted shares outstanding     58,111       58,055       58,791  
    OceanFirst Financial Corp.
    SELECTEDLOANAND DEPOSIT DATA
    (dollars in thousands)
     
    LOANS RECEIVABLE   At
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Commercial:                    
    Commercial real estate – investor   $ 5,200,137     $ 5,287,683     $ 5,273,159     $ 5,324,994     $ 5,322,755  
    Commercial and industrial:                    
    Commercial and industrial – real estate (1)     896,647       902,219       841,930       857,710       914,582  
    Commercial and industrial – non-real estate (1)     748,575       647,945       660,879       616,400       677,176  
    Total commercial and industrial     1,645,222       1,550,164       1,502,809       1,474,110       1,591,758  
        Total commercial     6,845,359       6,837,847       6,775,968       6,799,104       6,914,513  
    Consumer:                    
    Residential real estate     3,053,318       3,049,763       3,003,213       2,977,698       2,965,276  
    Home equity loans and lines and other consumer (“other consumer”)     226,633       230,462       242,975       242,526       245,859  
        Total consumer     3,279,951       3,280,225       3,246,188       3,220,224       3,211,135  
        Total loans     10,125,310       10,118,072       10,022,156       10,019,328       10,125,648  
    Deferred origination costs (fees), net     11,560       10,964       10,508       10,628       9,734  
    Allowance for loan credit losses     (78,798 )     (73,607 )     (69,066 )     (68,839 )     (67,173 )
        Loans receivable, net   $ 10,058,072     $ 10,055,429     $ 9,963,598     $ 9,961,117     $ 10,068,209  
    Mortgage loans serviced for others   $ 222,963     $ 191,279     $ 142,394     $ 104,136     $ 89,555  
      At March 31, 2025 Average Yield                    
    Loan pipeline (2):                      
    Commercial 7.37 %   $ 375,622     $ 197,491     $ 199,818     $ 166,206     $ 66,167  
    Residential real estate 6.41       116,121       97,385       137,978       80,330       57,340  
    Other consumer 8.51       12,681       11,783       13,788       12,586       13,030  
    Total 7.18 %   $ 504,424     $ 306,659     $ 351,584     $ 259,122     $ 136,537  
      For the Three Months Ended
      March 31,   December 31,   September 30,   June 30,   March 31,
      2025     2024       2024       2024       2024  
      Average Yield                    
    Loan originations:                      
    Commercial (3) 7.61 %   $ 233,968     $ 268,613     $ 245,886     $ 56,053     $ 123,010  
    Residential real estate 6.53       167,162       235,370       169,273       121,388       78,270  
    Other consumer 8.49       15,825       11,204       15,760       16,970       11,405  
    Total 7.21 %   $ 416,955     $ 515,187     $ 430,919     $ 194,411     $ 212,685  
    Loans sold     $ 104,991    (4) $ 127,508     $ 65,296     $ 45,045     $ 29,965  
    (1) During the quarter ended March 31, 2025, the Company retrospectively reclassified loans which were previously referred to as ‘commercial real estate – owner occupied’ and ‘commercial and industrial’ to ‘commercial and industrial – real estate’ and ‘commercial and industrial – non-real estate’, respectively. Collectively, these loans are referred to as ‘commercial and industrial’.
    (2) Loan pipeline includes loans approved but not funded.
    (3) Excludes commercial loan pool purchases of $24.3 million and $76.1 million for the three months ended March 31, 2025 and December 31, 2024, respectively.
    (4) Excludes sale of non-performing residential and consumer loans of $5.1 million for the three months ended March 31, 2025.

     

    DEPOSITS   At
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Type of Account                    
    Non-interest-bearing   $ 1,660,738     $ 1,617,182     $ 1,638,447     $ 1,632,521     $ 1,639,828  
    Interest-bearing checking     4,006,653       4,000,553       3,896,348       3,667,837       3,865,699  
    Money market     1,337,570       1,301,197       1,288,555       1,210,312       1,150,979  
    Savings     1,052,504       1,066,438       1,071,946       1,115,688       1,260,309  
    Time deposits (1)     2,119,558       2,080,972       2,220,871       2,367,659       2,320,036  
    Total deposits   $ 10,177,023     $ 10,066,342     $ 10,116,167     $ 9,994,017     $ 10,236,851  
    (1) Includes brokered time deposits of $370.5 million, $74.7 million, $201.0 million, $401.6 million, and $543.4 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.

     

    OceanFirst Financial Corp.
    ASSET QUALITY
    (dollars in thousands)
     
        March 31,   December 31,   September 30,   June 30,   March 31,
    ASSET QUALITY(1)     2025       2024       2024       2024       2024  
    Non-performing loans:                    
    Commercial real estate – investor   $ 23,595     $ 17,000     $ 12,478     $ 19,761     $ 21,507  
    Commercial and industrial:                    
    Commercial and industrial – real estate     4,690       4,787       4,368       4,081       3,355  
    Commercial and industrial – non-real estate     22       32       122       434       567  
    Total commercial and industrial     4,712       4,819       4,490       4,515       3,922  
    Residential real estate     5,709       10,644       9,108       7,213       7,181  
    Other consumer     2,954       3,064       2,063       1,933       2,401  
    Total non-performing loans(1)   $ 36,970     $ 35,527     $ 28,139     $ 33,422     $ 35,011  
    Other real estate owned     1,917       1,811       —       —       —  
    Total non-performing assets   $ 38,887     $ 37,338     $ 28,139     $ 33,422     $ 35,011  
    Delinquent loans 30 to 89 days   $ 46,246     $ 36,550     $ 15,458     $ 9,655     $ 17,534  
    Modifications to borrowers experiencing financial difficulty(2)                    
    Non-performing (included in total non-performing loans above)   $ 8,307     $ 3,232     $ 3,043     $ 3,210     $ 3,467  
    Performing     27,592       27,631       20,652       20,529       8,579  
    Total modifications to borrowers experiencing financial difficulty(2)   $ 35,899     $ 30,863     $ 23,695     $ 23,739     $ 12,046  
    Allowance for loan credit losses   $ 78,798     $ 73,607     $ 69,066     $ 68,839     $ 67,173  
    Allowance for loan credit losses as a percent of total loans receivable(3)     0.78 %     0.73 %     0.69 %     0.69 %     0.66 %
    Allowance for loan credit losses as a percent of total non-performing loans(3)     213.14       207.19       245.45       205.97       191.86  
    Non-performing loans as a percent of total loans receivable     0.37       0.35       0.28       0.33       0.35  
    Non-performing assets as a percent of total assets     0.29       0.28       0.21       0.25       0.26  
    Supplemental PCD and non-performing loans                    
    PCD loans, net of allowance for loan credit losses   $ 21,737     $ 22,006     $ 15,323     $ 16,058     $ 16,700  
    Non-performing PCD loans     7,724       7,931       2,887       2,841       3,525  
    Delinquent PCD and non-performing loans 30 to 89 days     10,489       2,997       1,279       1,188       2,088  
    PCD modifications to borrowers experiencing financial difficulty(2)     22       23       24       26       25  
    Asset quality, excluding PCD loans(4)                    
    Non-performing loans(1)     29,246       27,596       25,252       30,581       31,486  
    Non-performing assets     31,163       29,407       25,252       30,581       31,486  
    Delinquent loans 30 to 89 days (excludes non-performing loans)     35,757       33,553       14,179       8,467       15,446  
    Modifications to borrowers experiencing financial difficulty(2)     35,877       30,840       23,671       23,713       12,021  
    Allowance for loan credit losses as a percent of total non-performing loans(3)     269.43 %     266.73 %     273.51 %     225.10 %     213.34 %
    Non-performing loans as a percent of total loans receivable     0.29       0.27       0.25       0.31       0.31  
    Non-performing assets as a percent of total assets     0.23       0.22       0.19       0.23       0.23  
    (1) The quarter ended March 31, 2025 included the sale of non-performing residential and consumer loans of $5.1 million and the quarter ended September 30, 2024 included the resolution of a single commercial relationship exposure of $7.2 million.
    (2) Balances have been revised to represent only modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023.
    (3) Loans acquired from acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $5.6 million, $6.0 million, $5.7 million, $6.1 million and $7.0 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.
    (4) All balances and ratios exclude PCD loans.
    NET LOAN (CHARGE-OFFS) RECOVERIES   For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Net loan (charge-offs) recoveries:                    
    Loan charge-offs   $ (798 )   $ (55 )   $ (124 )   $ (1,600 )   $ (441 )
    Recoveries on loans     162       213       212       148       92  
    Net loan (charge-offs) recoveries   $ (636 )   $ 158     $ 88     $ (1,452 )   $ (349 )
    Net loan (charge-offs) recoveries to average total loans (annualized)     0.03 %     NM *     NM *     0.06 %     0.01 %
    Net loan (charge-offs) recoveries detail:                    
    Commercial   $ 25     $ 92     $ 129     $ (1,576 ) (1) $ (35 )
    Residential real estate     (720 ) (2)   (17 )     (6 )     87       66  
    Other consumer     59       83       (35 )     37       (380 )
    Net loan (charge-offs) recoveries   $ (636 )   $ 158     $ 88     $ (1,452 )   $ (349 )
    (1) The three months ended June 30, 2024 included a charge-off related to a single commercial real estate relationship of $1.6 million.
    (2) The three months ended March 31, 2025 included charge-offs of $720,000 related to the sale of non-performing residential loans.
    * Not meaningful as amounts are net loan recoveries.

     

    OceanFirst Financial Corp.
    ANALYSIS OF NET INTEREST INCOME
     
        For the Three Months Ended
        March 31, 2025   December 31, 2024   March 31, 2024
    (dollars in thousands)   Average
    Balance    		   Interest   Average
    Yield/
    Cost (1)    		   Average
    Balance    		   Interest   Average
    Yield/
    Cost (1)    		   Average
    Balance    		   Interest   Average
    Yield/
    Cost (1)
    Assets:                                    
    Interest-earning assets:                                    
    Interest-earning deposits and short-term investments   $ 95,439     $ 983   4.18 %   $ 195,830     $ 2,415   4.91 %   $ 163,192     $ 2,226   5.49 %
    Securities (2)     2,003,206       19,701   3.99       2,116,911       21,767   4.09       2,098,421       22,255   4.27  
    Loans receivable, net (3)                                    
    Commercial     6,781,005       98,260   5.88       6,794,158       101,003   5.91       6,925,048       104,421   6.06  
    Residential real estate     3,065,679       31,270   4.08       3,049,092       30,455   4.00       2,974,468       28,596   3.85  
    Other consumer     228,553       3,489   6.19       236,161       3,980   6.70       248,396       4,104   6.65  
    Allowance for loan credit losses, net of deferred loan costs and fees     (61,854 )     —   —       (60,669 )     —   —       (59,141 )     —   —  
    Loans receivable, net     10,013,383       133,019   5.37       10,018,742       135,438   5.38       10,088,771       137,121   5.46  
    Total interest-earning assets     12,112,028       153,703   5.13       12,331,483       159,620   5.15       12,350,384       161,602   5.26  
    Non-interest-earning assets     1,199,865               1,213,569               1,206,336          
    Total assets   $ 13,311,893             $ 13,545,052             $ 13,556,720          
    Liabilities and Stockholders’ Equity:                                    
    Interest-bearing liabilities:                                    
    Interest-bearing checking   $ 4,135,952       21,433   2.10 %   $ 4,050,428       22,750   2.23 %   $ 3,925,965       20,795   2.13 %
    Money market     1,322,003       9,353   2.87       1,325,119       10,841   3.25       1,092,003       9,172   3.38  
    Savings     1,058,015       1,785   0.68       1,070,816       2,138   0.79       1,355,718       4,462   1.32  
    Time deposits     1,916,109       18,475   3.91       2,212,750       24,160   4.34       2,414,063       25,426   4.24  
    Total     8,432,079       51,046   2.46       8,659,113       59,889   2.75       8,787,749       59,855   2.74  
    FHLB Advances     996,293       11,359   4.62       854,748       10,030   4.67       644,818       7,771   4.85  
    Securities sold under agreements to repurchase     64,314       428   2.70       76,856       513   2.66       68,500       411   2.41  
    Other borrowings     283,150       4,218   6.04       396,412       5,859   5.88       500,901       7,341   5.89  
    Total borrowings     1,343,757       16,005   4.83       1,328,016       16,402   4.91       1,214,219       15,523   5.14  
    Total interest-bearing liabilities     9,775,836       67,051   2.78       9,987,129       76,291   3.04       10,001,968       75,378   3.03  
    Non-interest-bearing deposits     1,597,972               1,627,376               1,634,583          
    Non-interest-bearing liabilities     222,951               227,221               247,129          
    Total liabilities     11,596,759               11,841,726               11,883,680          
    Stockholders’ equity     1,715,134               1,703,326               1,673,040          
    Total liabilities and equity   $ 13,311,893             $ 13,545,052             $ 13,556,720          
    Net interest income       $ 86,652           $ 83,329           $ 86,224    
    Net interest rate spread (4)           2.35 %           2.11 %           2.23 %
    Net interest margin (5)           2.90 %           2.69 %           2.81 %
    Total cost of deposits (including non-interest-bearing deposits)           2.06 %           2.32 %           2.31 %
    (1) Average yields and costs are annualized.
    (2) Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and are recorded at average amortized cost, net of allowance for securities credit losses.
    (3) Amount is net of deferred loan costs and fees, undisbursed loan funds, discounts and premiums and allowance for loan credit losses, and includes loans held for sale and non-performing loans.
    (4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income divided by average interest-earning assets.

     

    OceanFirst Financial Corp.
    SELECTED QUARTERLY FINANCIAL DATA
    (in thousands, except per share amounts)
     
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Selected Financial Condition Data:                    
    Total assets   $ 13,309,278     $ 13,421,247     $ 13,488,483     $ 13,321,755     $ 13,418,978  
    Debt securities available-for-sale, at estimated fair value     746,168       827,500       911,753       721,484       744,944  
    Debt securities held-to-maturity, net of allowance for securities credit losses     1,005,476       1,045,875       1,075,131       1,105,843       1,128,666  
    Equity investments     87,365       84,104       95,688       104,132       103,201  
    Restricted equity investments, at cost     102,172       108,634       98,545       92,679       85,689  
    Loans receivable, net of allowance for loan credit losses     10,058,072       10,055,429       9,963,598       9,961,117       10,068,209  
    Deposits     10,177,023       10,066,342       10,116,167       9,994,017       10,236,851  
    Federal Home Loan Bank advances     891,021       1,072,611       891,860       789,337       658,436  
    Securities sold under agreements to repurchase and other borrowings     262,940       258,113       501,090       504,490       492,520  
    Total stockholders’ equity     1,709,117       1,702,757       1,694,508       1,676,669       1,665,837  
        For the Three Months Ended,
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Selected Operating Data:                    
    Interest income   $ 153,703     $ 159,620     $ 161,525     $ 159,426     $ 161,602  
    Interest expense     67,051       76,291       79,306       77,163       75,378  
    Net interest income     86,652       83,329       82,219       82,263       86,224  
    Provision for credit losses (excluding Spring Garden)     5,340       2,041       517       3,114       591  
    Spring Garden opening provision for credit losses     —       1,426       —       —       —  
    Net interest income after provision for credit losses     81,312       79,862       81,702       79,149       85,633  
    Other income (excluding equity investments and sale of trust)     11,048       12,237       11,826       10,098       9,201  
    Net gain (loss) on equity investments     205       (5 )     1,420       887       1,923  
    Net gain on sale of trust business     —       —       1,438       —       1,162  
    Operating expenses (excluding FDIC special assessment and merger related expenses)     64,294       64,739       62,067       58,620       58,254  
    FDIC special assessment     —       —       —       —       418  
    Merger related expenses     —       110       1,669       —       —  
    Income before provision for income taxes     28,271       27,245       32,650       31,514       39,247  
    Provision for income taxes     6,808       5,083       7,464       7,082       10,637  
    Net income     21,463       22,162       25,186       24,432       28,610  
    Net (loss) income attributable to non-controlling interest     (46 )     253       70       59       (57 )
    Net income attributable to OceanFirst Financial Corp.   $ 21,509     $ 21,909     $ 25,116     $ 24,373     $ 28,667  
    Net income available to common stockholders   $ 20,505     $ 20,905     $ 24,112     $ 23,369     $ 27,663  
    Diluted earnings per share   $ 0.35     $ 0.36     $ 0.42     $ 0.40     $ 0.47  
    Net accretion/amortization of purchase accounting adjustments included in net interest income   $ 219     $ 20     $ 741     $ 1,086     $ 921  
        At or For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
        2025   2024   2024   2024   2024
    Selected Financial Ratios and Other Data (1) (2):                    
    Performance Ratios (Annualized):                    
    Return on average assets (3)   0.62 %   0.61 %   0.71 %   0.70 %   0.82 %
    Return on average tangible assets (3) (4)   0.65     0.64     0.74     0.73     0.85  
    Return on average stockholders’ equity (3)   4.85     4.88     5.68     5.61     6.65  
    Return on average tangible stockholders’ equity (3) (4)   7.05     7.12     8.16     8.10     9.61  
    Return on average tangible common equity (3) (4)   7.40     7.47     8.57     8.51     10.09  
    Stockholders’ equity to total assets   12.84     12.69     12.56     12.59     12.41  
    Tangible stockholders’ equity to tangible assets (4)   9.19     9.06     9.10     9.08     8.92  
    Tangible common equity to tangible assets (4)   8.76     8.62     8.68     8.64     8.49  
    Net interest rate spread   2.35     2.11     2.06     2.11     2.23  
    Net interest margin   2.90     2.69     2.67     2.71     2.81  
    Operating expenses to average assets   1.96     1.90     1.89     1.75     1.74  
    Efficiency ratio (5)   65.67     67.86     65.77     62.86     59.56  
    Loan-to-deposit ratio   99.50     100.50     99.10     100.30     98.90  
        At or For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Trust and Asset Management:                    
    Wealth assets under administration and management (“AUA/M”)   $ 149,106     $ 147,956     $ 152,797     $ 150,519     $ 236,891  
    Nest Egg AUA/M     453,803       431,434       430,413       403,647       407,478  
    Total AUA/M     602,909       579,390       583,210       554,166       644,369  
    Per Share Data:                    
    Cash dividends per common share   $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.20  
    Book value per common share at end of period     29.27       29.08       29.02       28.67       28.32  
    Tangible book value per common share at end of period (4)     19.16       18.98       19.28       18.93       18.63  
    Common shares outstanding at end of period     58,383,525       58,554,871       58,397,094       58,481,418       58,812,498  
    Preferred shares outstanding at end of period     57,370       57,370       57,370       57,370       57,370  
    Number of full-service customer facilities:     39       39       39       39       39  
    Quarterly Average Balances                    
    Total securities   $ 2,003,206     $ 2,116,911     $ 2,063,633     $ 2,058,711     $ 2,098,421  
    Loans receivable, net     10,013,383       10,018,742       9,958,794       10,012,491       10,088,771  
    Total interest-earning assets     12,112,028       12,331,483       12,232,672       12,203,776       12,350,384  
    Total goodwill and intangibles     535,657       534,942       513,731       514,535       515,356  
    Total assets     13,311,893       13,545,052       13,438,696       13,441,218       13,556,720  
    Time deposits     1,916,109       2,212,750       2,339,370       2,337,458       2,414,063  
    Total deposits (including non-interest-bearing deposits)     10,030,051       10,286,489       10,175,856       10,173,315       10,422,332  
    Total borrowings     1,343,757       1,328,016       1,333,245       1,325,372       1,214,219  
    Total interest-bearing liabilities     9,775,836       9,987,129       9,874,358       9,872,522       10,001,968  
    Non-interest bearing deposits     1,597,972       1,627,376       1,634,743       1,626,165       1,634,583  
    Stockholders’ equity     1,715,134       1,703,326       1,689,035       1,674,453       1,673,040  
    Tangible stockholders’ equity (4)     1,179,477       1,168,384       1,175,304       1,159,918       1,157,684  
                         
    Quarterly Yields and Costs                    
    Total securities     3.99 %     4.09 %     4.23 %     4.22 %     4.27 %
    Loans receivable, net     5.37       5.38       5.46       5.46       5.46  
    Total interest-earning assets     5.13       5.15       5.26       5.25       5.26  
    Time deposits     3.91       4.34       4.58       4.46       4.24  
    Total cost of deposits (including non-interest-bearing deposits)     2.06       2.32       2.44       2.37       2.31  
    Total borrowed funds     4.83       4.91       5.07       5.19       5.14  
    Total interest-bearing liabilities     2.78       3.04       3.20       3.14       3.03  
    Net interest spread     2.35       2.11       2.06       2.11       2.23  
    Net interest margin     2.90       2.69       2.67       2.71       2.81  
    (1) With the exception of end of quarter ratios, all ratios are based on average daily balances.
    (2) Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”
    (3) Ratios for each period are based on net income available to common stockholders.
    (4) Tangible stockholders’ equity and tangible assets exclude goodwill and other intangibles. Tangible common equity (also referred to as “tangible book value”) excludes goodwill, intangibles and preferred equity. Refer to “Non-GAAP Reconciliation.”
    (5) Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.
    OceanFirst Financial Corp.
    OTHER ITEMS
    (dollars in thousands, except per share amounts)
     
    NON-GAAP RECONCILIATION
     
        For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Core Earnings:                    
    Net income available to common stockholders (GAAP)   $ 20,505     $ 20,905     $ 24,112     $ 23,369     $ 27,663  
    (Less) add non-recurring and non-core items:                    
    Spring Garden opening provision for credit losses     —       1,426       —       —       —  
    Net (gain) loss on equity investments     (205 )     5       (1,420 )     (887 )     (1,923 )
    Net gain on sale of trust business     —       —       (1,438 )     —       (1,162 )
    FDIC special assessment     —       —       —       —       418  
    Merger related expenses     —       110       1,669       —       —  
    Income tax expense (benefit) on items     49       (388 )     270       188       642  
    Core earnings (Non-GAAP)   $ 20,349     $ 22,058     $ 23,193     $ 22,670     $ 25,638  
    Income tax expense   $ 6,808     $ 5,083     $ 7,464     $ 7,082     $ 10,637  
    Provision for credit losses     5,340       3,467       517       3,114       591  
    Less: non-core provision for credit losses     —       1,426       —       —       —  
    Less: income tax expense (benefit) on non-core items     49       (388 )     270       188       642  
    Core earnings PTPP (Non-GAAP)   $ 32,448     $ 29,570     $ 30,904     $ 32,678     $ 36,224  
    Core earnings diluted earnings per share   $ 0.35     $ 0.38     $ 0.39     $ 0.39     $ 0.44  
    Core earnings PTPP diluted earnings per share   $ 0.56     $ 0.51     $ 0.53     $ 0.56     $ 0.62  
                         
    Core Ratios (Annualized):                    
    Return on average assets     0.62 %     0.65 %     0.69 %     0.68 %     0.76 %
    Return on average tangible stockholders’ equity     7.00       7.51       7.85       7.86       8.91  
    Return on average tangible common equity     7.34       7.89       8.24       8.26       9.36  
    Efficiency ratio     65.81       67.74       66.00       63.47       61.05  
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Tangible Equity:                    
    Total stockholders’ equity   $ 1,709,117     $ 1,702,757     $ 1,694,508     $ 1,676,669     $ 1,665,837  
    Less:                    
    Goodwill     523,308       523,308       506,146       506,146       506,146  
    Intangibles     11,740       12,680       7,056       7,859       8,669  
    Tangible stockholders’ equity     1,174,069       1,166,769       1,181,306       1,162,664       1,151,022  
    Less:                    
    Preferred stock     55,527       55,527       55,527       55,527       55,527  
    Tangible common equity   $ 1,118,542     $ 1,111,242     $ 1,125,779     $ 1,107,137     $ 1,095,495  
                         
    Tangible Assets:                    
    Total assets   $ 13,309,278     $ 13,421,247     $ 13,488,483     $ 13,321,755     $ 13,418,978  
    Less:                    
    Goodwill     523,308       523,308       506,146       506,146       506,146  
    Intangibles     11,740       12,680       7,056       7,859       8,669  
    Tangible assets   $ 12,774,230     $ 12,885,259     $ 12,975,281     $ 12,807,750     $ 12,904,163  
                         
    Tangible stockholders’ equity to tangible assets     9.19 %     9.06 %     9.10 %     9.08 %     8.92 %
    Tangible common equity to tangible assets     8.76 %     8.62 %     8.68 %     8.64 %     8.49 %


    C    ompany Contact:

    Patrick S. Barrett
    Chief Financial Officer
    OceanFirst Financial Corp.
    Tel: (732) 240-4500, ext. 27507
    Email: pbarrett@oceanfirst.com

    The MIL Network –

  • MIL-OSI USA: Padilla Joins Federal and State Emergency Officials to Survey Pacific Palisades Fire Recovery Area; Highlights Bipartisan Legislation to Address Wildfire Risks

    US Senate News:

    Source: United States Senator Alex Padilla (D-Calif.)

    Padilla Joins Federal and State Emergency Officials to Survey Pacific Palisades Fire Recovery Area; Highlights Bipartisan Legislation to Address Wildfire Risks

    WATCH: Padilla discusses importance of bipartisan solutions like the Senate Fix Our Forests Act to combat wildfire crisisLOS ANGELES, CA — Just over 100 days after the Los Angeles fires first ignited, U.S. Senator Alex Padilla (D-Calif.) and California Natural Resources Secretary Wade Crowfoot joined federal and state emergency officials for a tour today of the Pacific Palisades fire recovery area led by the Federal Emergency Management Agency (FEMA). The tour consisted of a visit to businesses and residences impacted by the Pacific Palisades fire — with officials from FEMA, the U.S. Army Corps of Engineers (USACE), CAL FIRE, and the California Governor’s Office of Emergency Services (Cal OES) — followed by a press conference at a cleared debris site where Padilla discussed his new bipartisan legislation to address wildfire risks.
    In the aftermath of the devastating Southern California fires, Padilla’s Fix Our Forests Act would help combat catastrophic wildfires, restore forest ecosystems, and make federal forest management more efficient and responsive. The comprehensive Senate bill reflects months of bipartisan Senate negotiations to find consensus on how to best improve forest management practices, accelerate processes to protect communities, advance watershed restoration, and strengthen partnerships between federal agencies, states, tribes, and private stakeholders. The Senate version of the bill would also bolster coordination efforts across agencies through a new Wildfire Intelligence Center, which would streamline the federal response and create a whole-of-government approach to combating wildfires.
    A list of Senate Fix Our Forests Act provisions particularly impactful for California is available here. A one-pager on the bill is available here.
    “As thousands of Los Angeles families look at a long road to recovery ahead, we need to do everything in our power not just to rebuild, but to prevent devastation from future wildfires,” said Senator Padilla. “That’s why with these LA communities in mind, I convened a bipartisan group of Western Senators to reassess how we prevent and respond to wildfires. Our Senate version of the Fix Our Forests Act would increase the speed and scale of our wildfire prevention and mitigation efforts by expediting the removal of hazardous fuels, building ‘fuel breaks’ to stop mega wildfires, and creating a National Wildfire Intelligence Center to streamline federal response. We’re breaking through this harsh political climate with bipartisan solutions to both fight deadly wildfires and prevent even more greenhouse gas emissions — we can’t take this opportunity for granted.”
    “The bipartisan Fix Our Forests Act removes barriers and builds on California’s progress to accelerate more work on federal lands, faster,” said California Natural Resources Secretary Wade Crowfoot. “As an all-lands, all-hands approach, it is one more tool in the arsenal against the threat of wildfires. As we enter peak fire season, reducing catastrophic wildfire risk requires everyone to do their part.”
    “Across California, we are working year-round to reduce wildfire risk and enhance prevention efforts, and we are seeing results,” said Josh Nettles, CAL FIRE Assistant Region Chief. “Now by enhancing interagency coordination and promoting fire-resistant building methods and defensible space practices, the Fix Our Forests Act will help protect communities in the wildland-urban interface and elsewhere.”
    The American West has long been prone to wildfires, but climate change, prolonged drought, and the buildup of dry fuels have increasingly intensified these fires and extended fire seasons. Wildfires today are more catastrophic — growing larger, spreading faster, and burning more land than ever before. Nationwide, total acres burned rose from 2.7 million in 2023 to nearly 9 million in 2024, a 231 percent increase.
    California averages more than 7,500 wildfires a year. Not including the recent Los Angeles fires, six of the top 10 most destructive fires, three of the top five deadliest fires, and all of the state’s nine largest fires have burned since 2017. The status quo is simply unsustainable, and responding to the scale and magnitude of the crisis on the ground is essential to keeping California communities safe.
    Additionally, wildfires release carbon dioxide and other greenhouse gas emissions that accelerate climate change. California’s 2020 fire season, the worst on record, emitted enough greenhouse gases to erase nearly two decades of progress on emissions reductions in California. Addressing this wildfire emergency is critical to ensuring that our climate progress is not undermined by the devastating impacts of these fires.
    In the aftermath of the devastating Southern California fires, Senator Padilla has introduced more than 10 bills to help prevent and respond to future disasters. In February, Padilla introduced bipartisan legislation to create a national Wildfire Intelligence Center to streamline federal response and create a whole-of-government approach to combat wildfires. He also announced a package of three bipartisan bills to bolster fire resilience and proactive mitigation efforts, including the Fire-Safe Electrical Corridors Act, the Wildfire Emergency Act, and the Disaster Mitigation and Tax Parity Act. In January, Padilla introduced another suite of bipartisan bills to strengthen wildfire recovery and resilience, including the Wildland Firefighter Paycheck Protection Act, the Fire Suppression and Response Funding Assurance Act, and the Disaster Housing Reform for American Families Act. Additionally, earlier this month, he introduced the FEMA Independence Act, bipartisan legislation to restore the FEMA as an independent, cabinet-level agency and improve efficiency in federal emergency response efforts.
    Senator Padilla also visited Altadena last month, joining Senator Cory Booker (D-N.J.), FEMA, local leaders, and representatives from the Small Business Administration, Environmental Protection Agency, and USACE for a tour and briefing on cleanup and recovery efforts in the aftermath of the Eaton Fire.
    Video of today’s press conference is available here, and can be downloaded here.
    Additional photos from today’s tour are available here.

    MIL OSI USA News –

  • MIL-OSI Security: Update 288 – IAEA Director General Statement on Situation in Ukraine

    Source: International Atomic Energy Agency – IAEA

    IAEA experts based at Ukraine’s Zaporizhzhya Nuclear Power Plant (ZNPP) were required to stay indoors yesterday morning after hearing loud bursts of gunfire from near the main administrative building where their office is located, Director General Rafael Mariano Grossi said.

    The ZNPP informed the IAEA staff members that a nearby “drone threat” had made it necessary to postpone the team’s planned activities at the site, the latest incident highlighting persistent risks to nuclear safety and security during the military conflict.

    The IAEA team remained in the administrative building after the plant-wide shelter order was announced.

    In addition, the IAEA team has continued to hear explosions and gunfire at varying distances from the plant almost every day during the past week.

    “What was once virtually unimaginable – evidence of military action in the vicinity of a major nuclear facility – has become a near daily occurrence and a regular part of life at Europe’s largest nuclear power plant. From a nuclear safety perspective, this is clearly not a sustainable situation. The IAEA remains committed to doing everything we can to prevent a nuclear accident during this tragic war,” Director General Grossi said.

    Despite the regular sound of military activities in the area, the IAEA experts have continued to conduct walkdowns across the plant to monitor and assess nuclear safety and security. In recent days, for example, the team visited the ZNPP’s low-level solid radioactive waste storage facility, as well as other installations at the sprawling industrial site.

    In meetings earlier this week, the experts discussed with the ZNPP the staffing situation at the plant as well as various maintenance activities, including to some of the safety systems.

    At Ukraine’s other nuclear power plants (NPPs) – Khmelnytskyy, Rivne and South Ukraine – IAEA teams have also continued to monitor nuclear safety and security. All three plants are still producing electricity, although some units are in planned outage while others occasionally have to reduce output.

    At the Khmelnytskyy NPP, for example, one reactor remained in outage for maintenance and refuelling, while the power production of the second unit was reduced at the request of the grid operator for 36 hours earlier this week. At the Rivne NPP, a second unit was placed in outage for maintenance and refuelling, while the power production of a third was reduced at the request of the grid operator for a few days this week.

    The South Ukraine NPP also experienced power variations this week. The IAEA team at the plant was informed that seven drones were detected 2 km east of the site on 17 April, also a frequent occurrence during the conflict. Likewise, the teams – particularly at the Chornobyl site and the South Ukraine NPP – have continued to hear air raid alarms most days.

    The IAEA teams at the Rivne, South Ukraine and Chornobyl sites all rotated over the past week.

    As part of the IAEA’s technical nuclear safety and security assistance to Ukraine, the Hydrometeorological Centre and the Hydrometeorological organizations of the State Emergency Services of Ukraine received radiation detection and measurement equipment, and associated reference sources procured with funding from Austria and the United States. It was the 131st delivery organized by the IAEA since the start of the conflict.

    MIL Security OSI –

  • MIL-OSI Global: Trump’s aggressive actions against free speech speak a lot louder than his words defending it

    Source: The Conversation – USA – By Daniel Hall, Professor of Justice and Community Studies & Political Science, Miami University

    Free speech in the U.S. is being curtailed by the Trump administration. Malte Mueller, fStop/Getty Images

    Harvard University took the extraordinary step of suing the Trump administration on April 21, 2025, claiming that the pressure campaign mounted on the school by the president and his Cabinet to force viewpoint diversity on campus violated the Constitution’s guarantees of free speech.

    “Defendants’ actions are unlawful,” Harvard’s lawsuit states. “The First Amendment does not permit the Government to ‘interfere with private actors’ speech to advance its own vision of ideological balance.’”

    Yet in his first term, President Donald J. Trump declared that free speech mattered.

    Trump issued the “Executive Order Restoring Free Speech and Ending Federal Censorship” on March 21, 2019. In it, he expressed the importance of free inquiry and open debate to education and directed federal officials to use the federal government’s funding of higher education to ensure that universities promote free inquiry.

    Channeling free-speech champions Benjamin Franklin and James Madison, Trump wrote that “free inquiry is an essential feature of our Nation’s democracy.”

    As a professor of constitutional, criminal and comparative law, and as a citizen who enjoys his liberty, I agree.

    Free speech is fundamental to human progress. Scientific, medical, technological and social advancements all rely on the free flow of information. Robust discussion and disagreement are equally important to maintaining a healthy constitutional republic.

    In the words of the late U.S. Supreme Court Justice Robert Jackson, “If there is any fixed star in our constitutional constellation, it is that no official, high or petty, can prescribe what shall be orthodox in politics, nationalism, religion, or other matters of opinion or force citizens to confess by word or act their faith therein.”

    The First Amendment’s free speech and press clauses protect all forms of expression – oral, print, digital and artistic – from governmental interference or punishment.

    Of the many types of speech, political speech is the most protected.

    On the first day of his second term in office, Trump issued another free speech executive order. It affirms the administration’s commitment to free speech, directs that tax money is not used to abridge free speech and instructs federal employees to “identify and take appropriate action to correct past misconduct by the Federal Government related to censorship of protected speech.”

    In a vacuum, Trump’s orders appear to bode well for free speech.

    But what is important is free speech reality, not rhetoric. Three months into his second term, where does Trump stand?

    The many interconnected orders, letters, statements and actions of Trump’s White House make an assessment of any positive effects difficult. On the other hand, the Trump administration has clearly violated and chilled free speech on many occasions.

    At his second inauguration, Donald Trump promised to ‘stop all government censorship’ and ‘bring back free speech.’

    Repression and retaliation

    Attempts to silence the president’s adversaries are developing as a pattern.

    Law firms and attorneys who have sued or prosecuted Trump, or represented his adversaries, have been targeted for retribution and concessions. It began with an executive order on March 6, 2025, directed at the U.S.-based global law firm Perkins Coie, which had once represented Trump’s opponent in the 2016 presidential race, Hillary Clinton. A second order was issued on March 14, 2025, against Paul, Weiss, Rifkind, Wharton & Garrison because it once employed an attorney who investigated Trump. Subsequently, at least six other prominent law firms were also targeted.

    Several law firms acceded to the president’s demands, agreeing to accept clients without regard to political beliefs, to eliminate DEI practices, and to perform pro bono work valued in the hundreds of millions of dollars for causes Trump supports.

    The firms that didn’t accede to the president’s demands had their security clearances removed, access to federal buildings restricted, and were banned from working for federal agencies. A few of the firms that didn’t relent have won temporary injunctions barring the administration’s actions against them.

    The nonpartisan free speech advocacy organization Foundation for Individual Rights and Expression decried the orders as threatening the foundations of justice and free speech. In one of several challenges to these orders, U.S. District Judge Beryl Howell wrote on March 12, 2025, that Trump’s order appeared motivated by “retaliatory animus” and concluded that it “runs head on into the wall of First Amendment protections.” Two other federal courts reached similar conclusions.

    In the first three months of his second term, Trump withdrew Secret Service protection of several prominent critics who are former federal government officials, including John Bolton, a former Trump national security adviser. Former Secretary of State Mike Pompeo, his top aide, Brian Hook, and former high-level health official Anthony Fauci also lost their security protection.

    It is hard to imagine that these decisions won’t have a profoundly chilling effect on potential critics of the president, especially since the revocations were publicly announced and each individual has been the subject of credible threats resulting from their governmental service.

    Targeting the press

    A similar pattern exists for journalists, where Trump is using his power to punish organizations whose reporting he doesn’t like.

    AP journalists were banned from the White House and Air Force One on Feb. 11, 2025, for refusing to refer to the Gulf of Mexico as the Gulf of America, the new name Trump had ordered for the body of water. On April 9, 2025, this ban was found to violate the First Amendment by a judge nominated by Trump during his first term.

    Denouncing CNN and MSNBC as “illegal” and claiming they are paid political operatives, Trump suggested they should be investigated during a speech at the U.S. Department of Justice.

    Trump effectively closed Voice of America, after 83 years of continuous broadcasting, for being “anti-Trump” and radical in its views. By charter, the broadcaster represents “America, not any single segment of American society,” with “accurate, objective, and comprehensive” news and “a balanced and comprehensive projection of significant American thought and institutions” through television, radio, internet, social media and satellite broadcasts to peoples around the world.

    The Federal Communications Commission has initiated regulatory actions against the licenses of several television stations for broadcasts that have been accused by the President of being anti-Trump or biased in favor of Kamala Harris. Early in the process, the outcomes of these actions are to be determined.

    Protesters in Somerville, Mass., on March 26, 2025, demand the release of Rumeysa Ozturk, a Turkish student at Tufts University, whose recent arrest by federal agents is seen as an assault on free speech.
    AP Photo/Michael Casey

    Pressuring universities and students

    Other administration actions, I believe, raise serious free speech issues.

    Harvard isn’t the only university feeling pressure.

    The administration is threatening to withhold federal money from universities as a way to coerce many of them to comply with administration policies in ways that implicate free speech and in some instances violate legal processes for the withholding of federal support.

    Some of the Trump administration’s recent immigration enforcement efforts have targeted international students who are in the U.S. lawfully but who participated in Palestinian rights protests and disagreed with Israel’s actions during the war in Gaza.

    The administration claims that some students whose visas have been revoked were either Hamas supporters or violated criminal laws. The administration has also said that many students are being deported under broad authority the secretary of state has to deport those deemed a danger to national security.

    Democracy and free speech

    In the past decade, the U.S. has fallen in press freedom, rule of law and democratic governance, resulting in the classification of a “flawed democracy” by the Economist Intelligence Unit, a democratic watchdog. Unsurprisingly, there has been a simultaneous rise in public support for authoritarianism. These changes make support for free speech increasingly important.

    On March 4, 2025, Trump declared in a speech before a joint session of Congress that he “stopped all government censorship and brought free speech back to America.”

    The record doesn’t support this claim.

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

    – ref. Trump’s aggressive actions against free speech speak a lot louder than his words defending it – https://theconversation.com/trumps-aggressive-actions-against-free-speech-speak-a-lot-louder-than-his-words-defending-it-252706

    MIL OSI – Global Reports –

  • MIL-OSI USA: Ciscomani Marked Earth Day at Santa Cruz Watershed Collaboration

    Source: United States House of Representatives – Congressman Juan Ciscomani (Arizona)

    TUCSON, AZ – On Earth Day, U.S. Congressman Juan Ciscomani joined Audubon Southwest, the Theodore Roosevelt Conservation Partnership and Business for Water Stewardship, and other key local water stakeholders while visiting a desert riparian area in Pima County.  

    Ciscomani, a consistent champion of the Cooperative Watershed Management Program (CWMP), a unique federal resource administered through the Bureau of Reclamation that provides critical funding to local stakeholders for the development, planning and design of watershed management programs, has worked to secure and increase critical federal funding for the Santa Cruz Watershed Collaborative’s conservation projects.  

    “Water is our most precious resource, especially living here in the Sonoran Desert,” said Ciscomani. “In Congress, water has been a top priority for me, and I have led in several areas to secure our region and our state’s water security. Projects, like the ones the Santa Cruz Watershed Collaborative are working on to mitigate the effects of drought, are a prime example of the importance of supporting locally driven conservation efforts. I am proud to have fought for increased funding for the CWMP after several years of the program not receiving any increases.”

    The Santa Cruz Watershed Collaborative is funded by the Cooperative Watershed Management Program (CWMP), a grant program administered by the U.S. Bureau of Reclamation. The CWMP is a unique federal resource that provides critical funding to local stakeholders for the development, planning, and design of watershed management programs.  

    Congressman Ciscomani advocated for an increase in the CWMP in the Appropriations Committee, which partially funds the Santa Cruz Watershed Collaborative. On April 10th, 2023, Ciscomani testified to the Energy and Water Appropriations Subcommittee on the importance of the CWMP and the need to increase its funding. Prior to Ciscomani’s advocacy, the program was flat-funded at $5 million, and since FY24, it has received $8 million in funding from the E&W subcommittee.  

    Congressman Ciscomani is the Co-Chair of the bipartisan Colorado River Caucus with Rep Joe Neguse (D-CO-2) and was recently named the Vice-Chair of Conservative Climate Caucus.  

    ### 

    MIL OSI USA News –

  • MIL-OSI United Nations: Hydramo

    Source: UNISDR Disaster Risk Reduction

    Mission

    Hydramo’s mission is to deliver affordable, accessible, and autonomous flood early warning systems by combining in-situ environmental sensing, Earth Observation (EO) data, and direct-to-satellite communication.

    Hydramo empowers vulnerable communities and governments to predict, detect, and respond to floods in real time — even in remote, infrastructure-limited regions — through a scalable solution that bridges space-based insights with ground-level realities.

    MIL OSI United Nations News –

  • MIL-OSI United Nations: WaveSave

    Source: UNISDR Disaster Risk Reduction

    Mission

    WaveSave, is dedicated to turning water-related uncertainties into confidence for a secure future. As a leader in end-to-end water control solutions, WaveSave specializes in managing the risks of floods and droughts, ensuring that communities and institutions worldwide can thrive sustainably.

    Wave Save aims to empower communities, governments, and organizations worldwide with innovative water control solutions that mitigate the risks of floods and droughts, ensuring safety, sustainability, and prosperity for all.

    MIL OSI United Nations News –

  • MIL-OSI USA: Replacing Missing or Damaged Documents

    Source: US Federal Emergency Management Agency

    Headline: Replacing Missing or Damaged Documents

    Replacing Missing or Damaged Documents

    FRANKFORT, Ky

    – If you lost important documents in the recent floods, you are not alone

    We know this is a difficult time and dealing with lost or damaged documents can feel overwhelming

    But there is help available

    You can learn more and get assistance retrieving these important documents by visiting your local FEMA Disaster Recovery Center

    Staff there can help guide you through the process and connect you with additional resources

    Find a center near you: FEMA Disaster Recovery Center LocatorReplacing things like IDs, insurance papers, and birth certificates is important

    Below is a simple guide to getting your documents back quickly

     It is also a good idea to double check your current inventory of these important documents, in case you need to access them quickly in an emergency

     Insurance Policy InformationCall your insurance company or agent and ask for a copy of your policy, including the Declaration Page

    Birth, Marriage, & Death CertificatesOrder certified copies online, by mail, or in person through the Kentucky Office of Vital Statistics

    Visit the Kentucky Office of Vital Statistics or call (502) 564-4212

    Driver’s License & ID CardsIf your license or ID was lost or damaged, visit a Kentucky Transportation Cabinet (KYTC) Driver Licensing Regional Office

    Check for locations and details at drive

    ky

    gov

    Social Security CardApply for a replacement at www

    ssa

    gov

    Visit your local Social Security office

    Call 1-800-772-1213 for assistance

    Medicare CardsRequest a new card at MyMedicare

    gov

    Call 1-800-MEDICARE (1-800-633-4227)

    Tax Returns & Military RecordsIRS Tax Returns – Request copies of past tax returns at irs

    gov

    Military Service Records – Request replacements at www

    archives

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    Thu, 04/24/2025 – 14:03

    MIL OSI USA News –

  • MIL-OSI Europe: Answer to a written question – Potential threats to the Tagliamento River’s ecosystem – E-000543/2025(ASW)

    Source: European Parliament

    1. The Commission does not undertake impact assessments of plans and projects on the environment, as Member States are primarily responsible to ensure implementation and enforcement of EU environmental law. According to information provided by the Italian authorities, the construction of a weir-bridge in Pinzano for the creation of a detention basin is a measure aimed at mitigating flood risk in Italy’s Flood Risk Management Plan (FRMP). Following technical assessments and studies carried out by competent authorities and discussions with stakeholders , a set of interventions was identified to achieve the mitigation effect proposed by this measure[1]. The possible environmental impacts resulting from the measure are reported in the first FRMP, which underwent a Strategic Environmental Assessment (SEA)[2]. The measure is also included in the current FRMP. Having been the subject of an SEA already, the assessment of actual impacts requires a more defined project design of the interventions, to be evaluated through an Environmental Impact Assessment[3] and the appropriate assessment required under Articles 6(3) and 6(4) of the Habitats Directive[4]. It must also be assessed whether these interventions would have an adverse effect on the status of the body of water concerned, and, if so, whether they would be covered by a derogation under Article 4(7) of the Water Framework Directive[5].

    2. Based on the information above, the Commission has no evidence that the measure infringes EU law. In its role as guardian of the Treaties, the Commission will continue monitoring the situation and may decide to take appropriate action.

    • [1] The set of interventions includes: i) a weir with an in-line detention basin in the river reach crossed by the Dignano bridge; ii) a weir with an off-line detention basin, close to the Madrisio bridge, and iii) adjustments to enhance and/or retrofit levees, overflow channels, and the drainage network. The residual risk would be managed through the two non-structural measures: i) the Citizen Observatory (Osservatorio dei Cittadini) and ii) the update of Civil Protection Plans.
    • [2] Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment, OJ L 197, 21.7.2001, p. 30-37.
    • [3] Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment, OJ L 026 28.1.2012, p. 1.
    • [4] Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and flora, OJ L 206 22.7.1992, p. 7.
    • [5] Directive 2000/60/EC of the European Parliament and of the Council of 23 October 2000 establishing a framework for Community action in the field of water policy, OJ L 327, 22.12.2000, p. 1.
    Last updated: 24 April 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Statement by President von der Leyen with UK Prime Minister Starmer

    Source: EuroStat – European Statistics

    European Commission Statement London, 24 Apr 2025 Thank you very much, Keir. It is good to meet a friend again and to be here with you We are friends, and we are Europeans, we are very like-minded.

    The President of the European Commission and the Prime Minister of the United Kingdom met today and agreed to strengthen the relationship between the United Kingdom and the European Union.

    They agreed on the shared challenges facing the European Union and the United Kingdom including the altered strategic context for the wider continent notably resulting from Russia’s illegal invasion of Ukraine. They reiterated their unwavering support for Ukraine’s sovereignty.

    The leaders agreed the UK and European Union would also continue to work closely to address wider global challenges including economic headwinds, geopolitical competition, irregular migration, climate change and energy prices, which pose fundamental challenges to the shared values of the United Kingdom and the European Union and provide the strategic driver for stronger cooperation.

    The leaders reflected on the events in the Middle East overnight and condemned the egregious attack by Iran on Israel. They recognised Israel’s right to self-defence in the face of this unacceptable aggression. De-escalation by all parties in the region was of the upmost importance. They reiterated the need to coordinate the diplomatic response to the situation in the Middle East and called on all sides to show restraint and end the bloodshed. An immediate ceasefire in Lebanon and Gaza was required to create the space to allow for political solutions, the leaders underlined.

    They agreed on the importance of the unique relationship between the European Union and the United Kingdom in addressing such challenges and resolved, in line with our shared values, to strengthen ambitiously their structured strategic cooperation.

    They reaffirmed that the Withdrawal Agreement, including the Windsor Framework, and the Trade and Cooperation Agreement underpin relations between them and underlined their mutual commitment to the full and faithful implementation of those agreements. They reaffirmed their mutual commitment to uphold international law and to the European Convention on Human Rights. They agreed a stable, positive and forward-looking relationship was in their mutual interests and provided the basis for long term cooperation.

    They agreed to take forward this agenda of strengthened cooperation at pace over the coming months, starting with defining together the areas in which strengthened cooperation would be mutually beneficial, such as the economy, energy, security and resilience, in full respect of their internal procedures and institutional prerogatives. They agreed to meet again this autumn.

    They agreed on the importance of holding regular EU-UK Summits at leader-level to oversee the development of the relationship. They agreed that a first Summit should take place ideally in early 2025.

    MIL OSI Europe News –

  • MIL-OSI Security: Former Florida Highway Patrol Trooper and DEA Task Force Officer Sentenced to Nine Years in Federal Prison for Distributing Drugs, Defrauding the United States, and Illegal Firearm Possession

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

    Jacksonville, Florida – United States District Judge Wendy W. Berger has sentenced Joshua Grady Earrey (46, Jacksonville) to nine years in federal prison for multiple federal offenses including one count of conspiring to distribute narcotics, one count of conspiring to defraud the United States, and one count of possessing firearms and ammunition while addicted to illegal narcotics. As part of the sentence, Earrey also agreed to forfeit or abandon the money, firearms, and ammunition involved in these offenses. He entered a guilty plea on April 4, 2024.

    According to court documents, while employed as a Florida Highway Patrol Trooper and designated Task Force Officer with the Drug Enforcement Administration, Earrey and a co-conspirator engaged in extensive corrupt activity from 2021-2023. These acts included the theft of money and illegal drugs that were seized as evidence during criminal investigations; providing illegal drugs (including fentanyl and cocaine) to others to distribute on their behalf; and providing ammunition to an individual that Earrey knew to be a convicted murderer in exchange for opiates. Earrey and his co-conspirator stole more than 1,000 pounds of marijuana from evidence and provided the drugs to others to sell on their behalf. They covered up the theft by submitting falsified paperwork showing that the marijuana had been destroyed. Similarly, they stole a kilogram of cocaine from evidence and then gave it to a drug dealer to sell for them.

    “Law enforcement officers who operate as though they are above the law betray the badge and the citizens they swore to protect,” said FBI Jacksonville Acting Special Agent in Charge Hubert Reynolds. “This case exemplifies the FBI’s commitment to holding public servants accountable if they violate the very laws they promised to uphold.”

    This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service — Criminal Investigation, with assistance from U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorney William S. Hamilton. The United States Attorney’s Office, the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and U.S. Customs and Border Protection wish to thank the Florida Highway Patrol, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for their cooperation during this investigation.

    MIL Security OSI –

  • MIL-OSI Security: Baltimore Man Pleads Guilty in Federal Court to Fentanyl and Cocaine Charges

    Source: Office of United States Attorneys

    The defendant, a felon, also possessed a firearm in connection with the drug offense.

    Baltimore, Maryland – Freddie Anthony Curry, 54, of Baltimore, Maryland, pled guilty in federal court to possession with the intent to distribute 400 grams or more of fentanyl and 500 grams or more of cocaine. 

    Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the plea with Special Agent in Charge William DelBagno, Federal Bureau of Investigation (FBI) – Baltimore Field Office; Special Agent in Charge Ibrar A. Mian, Drug Enforcement Administration (DEA) – Washington Division; and Postal Inspector in Charge Damon Wood, U.S. Postal Inspection Service (USPIS) – Washington Division.

    In May 2024, the FBI and DEA began investigating Curry in connection with suspected fentanyl and cocaine trafficking in the Baltimore area.  During their investigation, they verified Curry’s vehicle and residence. Authorities then executed federal search warrants on Curry’s residence and vehicle. During the search, investigators recovered approximately 980 grams of fentanyl, 1,040 grams of cocaine, digital scales, drug-packaging materials, and a Glock 19 9-millimeter handgun. Curry is prohibited from possessing a firearm due to prior felony convictions.

    The parties have agreed that if the Court accepts the plea agreement, Curry will be sentenced to 120 months in federal prison. Sentencing is set for Monday, June 30, 2025, at 2 p.m.

    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.

    This case is part of a Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Baltimore Strike Force is to identify, disrupt, and dismantle violent drug trafficking, money laundering, and transnational criminal organizations to reduce drug-related and/or gang violence in the Baltimore metropolitan and surrounding areas.  The Baltimore Strike Force is comprised of agents and officers from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Federal Bureau of Investigation, the Department of Homeland Security, the United States Marshals Service, the United States Secret Service, United States Postal Inspection Service, the Maryland State Police, the Baltimore Police Department, the Baltimore Sheriff’s Office, the Baltimore County Police Department, the Maryland Transportation Authority, and the Maryland Department of Public Safety and Correctional Services. The prosecution is being led by the Office of the United States Attorney for the District of Maryland.

    U.S. Attorney Hayes commended the FBI, DEA, and USPIS for their work in the investigation.  Ms. Hayes also thanked Assistant U.S. Attorney Sarah Simpkins who is prosecuting the case.

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

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    MIL Security OSI –

  • MIL-OSI Security: Seattle man who carjacked a BMW near Lumen Field pleads guilty in federal court

    Source: Office of United States Attorneys

    Seattle – A 32-year-old Seattle man pleaded guilty today in U.S. District Court in Seattle to carjacking and using a firearm during a crime of violence, announced Acting U.S. Attorney Teal Luthy Miller. Louis Montel De’Andre Dowers was arrested June 9, 2024, hours after he carjacked a BMW outside the Seattle Team Shop on Occidental Avenue South in the Pioneer Square neighborhood. Dowers faces a mandatory minimum five years in prison and up to life in prison when sentenced by U.S. District Judge John H. Chun on August 4, 2025.

    According to the plea agreement, a man was waiting for his wife, sitting in the driver’s seat of his car outside a business on Occidental Avenue South. Dowers approached the car from behind, pulled out a distinctive firearm, pointed it at the victim, and ordered him out of the car saying “It’s mine now. Get out.”  The victim was able to get his dog out of the car before Dowers drove off. The victim’s wife came out of the store and was nearly hit by the car as it raced away.

    Police were able to track the car to Auburn, Washington – near a middle school. Working with a description of the alleged carjacker, a King County Sheriff’s deputy located Dowers walking nearby. When searched, Dowers possessed a semi-automatic firearm that had been privately manufactured – a so-called ‘ghost gun.’ The firearm was fully loaded with a round in the chamber. In his plea agreement Dowers admits he used the gun in the carjacking

    Carjacking is punishable by up to 15 years in prison. Using a firearm during a crime of violence, as described in the plea agreement, is punishable by a mandatory minimum five years in prison and up to life in prison. Under the terms of the plea agreement, prosecutors will recommend no more than seven years in prison. The defense can recommend no less than five years and a day in prison.  Judge Chun is not bound by the recommendations and can impose any sentence allowed by law after considering the sentencing guidelines and other statutory factors.

    The case was investigated by the federal carjacking task force made up of the Seattle Police Department, the Kent Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) and the FBI. The case is being prosecuted by Assistant United States Attorney Todd Greenberg who leads the Western District of Washington Carjacking Task Force.

    MIL Security OSI –

  • MIL-OSI Security: Savannah Resident Convicted at Trial of Machinegun and Drug Charges

    Source: Office of United States Attorneys

    SAVANNAH, GA:  A Savannah resident has been found guilty at trial of drug trafficking and weapons charges.

    Malik Javier McKenzie, 27, of Savannah, was convicted after a two-day trial in U.S. District Court on charges of Possession of Controlled Substances With Intent to Distribute, Possession of a Machinegun in Furtherance of a Drug Trafficking Crime, and Possession of a Firearm by a Convicted Felon, said Tara M. Lyons, Acting U.S. Attorney for the Southern District of Georgia. The convictions subject McKenzie to a statutory minimum penalty of 30 years and a maximum penalty of life in prison, followed by a period of supervised release upon completion of any prison term. There is no parole in the federal system.

    As described at trial, McKenzie was the driver of a motor vehicle that recklessly avoided police after an attempted traffic stop. Following a crash of McKenzie’s vehicle, McKenzie led law enforcement on a foot chase that resulted in a physical struggle. A search of McKenzie’s person following the struggle revealed a Glock handgun in his pants pocket and a fanny pack containing distributable quantities of Cocaine, Fentanyl, Carfentanil, and Methamphetamine. 

    Later testing by the Drug Enforcement Administration (DEA) confirmed the presence of the various controlled substances. Testimony at trial noted that Carfentanil is a more potent, and dangerous, version of Fentanyl. Testing by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) revealed that the recovered handgun bore a “machinegun conversion device” (commonly referred to as a “Glock switch”) which illegally allowed the firearm to function as a machinegun in that it expelled multiple rounds of ammunition with one sustained pull of the trigger.

    McKenzie was prohibited from possessing any firearm because of previous convictions in both the U.S. District Court and the Superior Court for the Eastern Judicial Circuit of Georgia.

    “I am extremely proud of our officers, investigators, and our federal partners involved in this case,” said Tracey Howard, Hinesville Chief of Police. “Due to their hard work and expertise, Mr. McKenzie is being held accountable for his actions.”

    “Machinegun conversion kits are turning up more and more in our streets and at crime scenes,” said Assistant Special Agent in Charge Beau Kolodka. “These conversion devices are illegal, dangerous, and pose a serious threat to the community. ATF is working closely with our law enforcement partners to keep these devices off our streets.”

    “Guns, drugs, and violence are unfortunately all too common tools of the drug traffickers operating in our communities,” said Jae W. Chung, Acting Special Agent in Charge of the DEA Atlanta Division. “Today’s announcement demonstrates DEA’s emphatic commitment to attacking the drug dealers responsible for the devastation.”

    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 Neighborhoods (PSN).

    This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer. 

    The case was being investigated by the ATF, DEA, and the Hinesville Police Department and prosecuted for the United States by Assistant U.S. Attorney Bradley R. Thompson and Special Assistant U.S. Attorney Sarah N. Brettin.
     

    MIL Security OSI –