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

    Source: GlobeNewswire (MIL-OSI)

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

    Second Quarter 2025 Highlights

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

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

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

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

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

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

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

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

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

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

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

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

    [Financial tables follow]

     
    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Statements of Operations
    (in thousands, except per share amounts)
    (unaudited)
     
        Three Months Ended     Six Months Ended  
        June 30,     June 30,  
        2025     2024     2025     2024  
                                     
    Net sales   $ 168,299     $ 133,205     $ 320,537     $ 261,295  
    Cost of sales     103,216       79,809       196,635       159,821  
    Gross profit     65,083       53,396       123,902       101,474  
    As a % of net sales     38.7 %     40.1 %     38.7 %     38.8 %
                                     
    Research and development costs     8,104       5,994       15,326       11,209  
    Selling, general and administrative expenses     30,914       24,141       60,421       49,085  
    As a % of net sales     18.4 %     18.1 %     18.8 %     18.8 %
    Restructuring charges     280       638       (2,653 )     703  
    Gain on sale of property     (4,075 )     –       (4,075 )     –  
    Income from operations     29,860       22,623       54,883       40,477  
    As a % of net sales     17.7 %     17.0 %     17.1 %     15.5 %
                                     
    Interest expense     (3,993 )     (415 )     (8,145 )     (849 )
    Interest income     264       1,146       539       2,261  
    Other income (expense), net     7,568       (471 )     10,207       1,346  
    Earnings before income taxes     33,699       22,883       57,484       43,235  
                                     
    Provision for income taxes     6,906       4,077       12,369       8,555  
    Effective tax rate     20.5 %     17.8 %     21.5 %     19.8 %
    Net earnings   $ 26,793     $ 18,806     $ 45,115     $ 34,680  
    As a % of net sales     15.9 %     14.1 %     14.1 %     13.3 %
                                     
    Less: Net earnings attributable to noncontrolling interest     822       –       1,660       –  
    Redemption value adjustment attributable to noncontrolling interest     (890 )     –       (1,280 )     –  
    Net earnings attributable to Bel Fuse Shareholders   $ 26,861     $ 18,806     $ 44,735     $ 34,680  
                                     
    Weighted average number of shares outstanding:                                
    Class A common shares – basic and diluted     2,115       2,124       2,115       2,131  
    Class B common shares – basic and diluted     10,551       10,492       10,504       10,551  
                                     
    Net earnings per common share:                                
    Class A common shares – basic and diluted   $ 2.03     $ 1.43     $ 3.39     $ 2.61  
    Class B common shares – basic and diluted   $ 2.14     $ 1.50     $ 3.58     $ 2.76  
     
    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Balance Sheets
    (in thousands, unaudited)
     
        June 30, 2025     December 31, 2024  
    Assets                
    Current assets:                
    Cash and cash equivalents   $ 59,284     $ 68,253  
    Held to maturity U.S. Treasury securities     –       950  
    Accounts receivable, net     121,241       111,376  
    Inventories     164,648       161,370  
    Other current assets     33,442       31,581  
    Total current assets     378,615       373,530  
    Property, plant and equipment, net     48,704       47,879  
    Right-of-use assets     23,930       25,125  
    Related-party note receivable     3,715       2,937  
    Equity method investment     10,284       9,265  
    Goodwill and other intangible assets, net     436,292       439,984  
    Other assets     49,040       51,069  
    Total assets   $ 950,580     $ 949,789  
                     
    Total liabilities, redeemable noncontrolling interests and stockholders’ equity                
    Current liabilities:                
    Accounts payable   $ 53,685     $ 49,182  
    Operating lease liability, current     8,688       7,954  
    Other current liabilities     61,709       70,933  
    Total current liabilities     124,082       128,069  
    Long-term debt     250,000       287,500  
    Operating lease liability, long-term     16,387       17,763  
    Other liabilities     74,402       75,295  
    Total liabilities     464,871       508,627  
    Redeemable noncontrolling interests     80,966       80,586  
    Stockholders’ equity     404,743       360,576  
    Total liabilities, redeemable noncontrolling interests and stockholders’ equity   $ 950,580     $ 949,789  
     
    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Statements of Cash Flows
    (in thousands, unaudited)
     
        Six Months Ended  
        June 30,  
        2025     2024  
                     
    Cash flows from operating activities:                
    Net earnings   $ 45,115     $ 34,680  
    Adjustments to reconcile net earnings to net cash provided by operating activities:                
    Depreciation and amortization     13,284       7,123  
    Stock-based compensation     2,900       1,775  
    Amortization of deferred financing costs     692       27  
    Deferred income taxes     (861 )     (2,930 )
    Net unrealized gains on foreign currency revaluation     (12,913 )     (355 )
    Gain on sale of property     (4,075 )     –  
    Other, net     1,595       652  
    Changes in operating assets and liabilities:                
    Accounts receivable, net     (8,203 )     2,805  
    Unbilled receivables     (1,400 )     6,887  
    Inventories     (122 )     7,972  
    Accounts payable     3,511       (4,026 )
    Accrued expenses     (8,641 )     (14,147 )
    Accrued restructuring costs     (5,075 )     (1,553 )
    Income taxes payable     2,143       4,517  
    Other operating assets/liabilities, net     914       (5,083 )
    Net cash provided by operating activities     28,864       38,344  
                     
    Cash flows from investing activities:                
    Purchases of property, plant and equipment     (6,718 )     (4,278 )
    Purchases of held to maturity U.S. Treasury securities     –       (122,345 )
    Proceeds from held to maturity securities     950       101,071  
    Investment in related party notes receivable     (778 )     (633 )
    Proceeds from sale of property, plant and equipment     4,867       229  
    Net cash used in investing activities     (1,679 )     (25,956 )
                     
    Cash flows from financing activities:                
    Dividends paid to common stockholders     (1,660 )     (1,674 )
    Deferred financing costs     (681 )     –  
    Repayments of long-term debt     (42,500 )     –  
    Proceeds of long-term debt     5,000       –  
    Purchases of common stock     –       (14,175 )
    Net cash used in financing activities     (39,841 )     (15,849 )
                     
    Effect of exchange rate changes on cash and cash equivalents     3,687       (934 )
                     
    Net decrease in cash and cash equivalents     (8,969 )     (4,395 )
    Cash and cash equivalents – beginning of period     68,253       89,371  
    Cash and cash equivalents – end of period   $ 59,284     $ 84,976  
                     
                     
    Supplementary information:                
    Cash paid during the period for:                
    Income taxes, net of refunds received   $ 11,422     $ 8,277  
    Interest payments   $ 8,188     $ 1,985  
    ROU assets obtained in exchange for lease obligations   $ 1,502     $ 4,239  
     
    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    Bel Fuse Inc.
    Supplementary Information(1)
    Product Group Highlights
    (dollars in thousands, unaudited)
     
        Sales     Gross Margin  
        Q2-25     Q2-24     % Change     Q2-25     Q2-24     Basis Point Change  
    Power Solutions and Protection   $ 86,799     $ 58,551       48.2 %     41.9 %     45.7 %     (380 )
    Connectivity Solutions     59,202       57,822       2.4 %     39.2 %     38.9 %     30  
    Magnetic Solutions     22,298       16,832       32.5 %     28.7 %     26.4 %     230  
    Total   $ 168,299     $ 133,205       26.3 %     38.7 %     40.1 %     (140 )
        Sales     Gross Margin  
        YTD June 2025     YTD June 2024     % Change     YTD June 2025     YTD June 2024     Basis Point Change  
    Power Solutions and Protection   $ 169,853       118,798       43.0 %     42.2 %     44.8 %     (260 )
    Connectivity Solutions     109,932       112,107       -1.9 %     38.6 %     37.6 %     100  
    Magnetic Solutions     40,752       30,390       34.1 %     26.9 %     21.8 %     510  
    Total   $ 320,537     $ 261,295       22.7 %     38.7 %     38.8 %     (10 )
     
    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    Bel Fuse Inc.
    Supplementary Information(1)
    Reconciliation of GAAP Net Earnings to Non-GAAP Operating Income and Adjusted EBITDA(2)(3)
    (in thousands, unaudited)
     
        Three Months Ended     Six Months Ended  
        June 30,     June 30,  
        2025     2024     2025     2024  
                                     
    GAAP Net earnings   $ 26,793     $ 18,806     $ 45,115     $ 34,680  
    Provision for income taxes     6,906       4,077       12,369       8,555  
    Other income/expense, net     (7,568 )     471       (10,207 )     (1,346 )
    Interest income     (264 )     (1,146 )     (539 )     (2,261 )
    Interest expense     3,993       415       8,145       849  
    GAAP Operating Income   $ 29,860     $ 22,623     $ 54,883     $ 40,477  
    Restructuring charges     280       638       (2,653 )     703  
    Amortization of inventory step-up     799       –       1,757       –  
    Gain on sale of property     (4,075 )     –       (4,075 )     –  
    Stock-based compensation     1,721       971       2,900       1,775  
    Non-GAAP Operating Income   $ 28,585     $ 24,232     $ 52,812     $ 42,955  
    Depreciation and amortization     6,600       3,439       13,284       7,123  
    Adjusted EBITDA   $ 35,185     $ 27,671     $ 66,096     $ 50,078  
    % of net sales     20.9 %     20.8 %     20.6 %     19.2 %
                                     
    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    (2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.
    (3) In the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented.
    Bel Fuse Inc.
    Supplementary Information(1)
    Reconciliation of GAAP Measures to Non-GAAP Measures(2)(4)
    (in thousands, except per share data) (unaudited)
     
    The following tables detail the impact that certain unusual or special items had on the Company’s net earnings per common Class A and Class B basic and diluted shares (“EPS”) and the line items in which these items were included on the consolidated statements of operations.
     
        Three Months Ended June 30, 2025     Three Months Ended June 30, 2024  
    Reconciling Items   Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)     Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)  
                                                                                     
    GAAP measures   $ 33,699     $ 6,906     $ 26,861     $ 2.03     $ 2.14     $ 22,883     $ 4,077     $ 18,806     $ 1.43     $ 1.50  
    Restructuring charges     280       48       232       0.02       0.02       638       153       485       0.04       0.04  
    Redemption value adjustment on redeemable NCI     –       –       (890 )     (0.07 )     (0.07 )     –       –       –       –       –  
    Amortization of inventory step-up     799       184       615       0.05       0.05       –       –       –       –       –  
    Gain on sale of property     (4,075 )     (937 )     (3,138 )     (0.24 )     (0.25 )     –       –       –       –       –  
    Stock-based compensation     1,721       354       1,367       0.10       0.11       972       200       772       0.06       0.06  
    Amortization of intangibles     3,697       647       3,050       0.23       0.24       1,148       239       909       0.07       0.07  
    Unrealized foreign currency exchange (gains) losses     (9,250 )     (2,127 )     (7,123 )     (0.54 )     (0.57 )     370       80       290       0.02       0.02  
    Non-GAAP measures   $ 26,871     $ 5,075     $ 20,974     $ 1.58     $ 1.67     $ 26,011     $ 4,749     $ 21,262     $ 1.61     $ 1.70  
        Six Months Ended June 30, 2025     Six Months Ended June 30, 2024  
    Reconciling Items   Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)     Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)  
                                                                                     
    GAAP measures   $ 57,484     $ 12,369     $ 44,735     $ 3.39     $ 3.58     $ 43,235     $ 8,555     $ 34,680     $ 2.61     $ 2.76  
    Restructuring charges     (2,653 )     (323 )     (2,330 )     (0.18 )     (0.19 )     703       163       540       0.04       0.04  
    Redemption value adjustment on redeemable NCI     –       –       (1,280 )     (0.10 )     (0.10 )     –       –       –       –       –  
    Amortization of inventory step-up     1,757       404       1,353       0.10       0.11       –       –       –       –       –  
    Gain on sale of property     (4,075 )     (937 )     (3,138 )     (0.24 )     (0.25 )     –       –       –       –       –  
    Stock-based compensation     2,900       597       2,303       0.18       0.18       1,776       366       1,410       0.11       0.11  
    Amortization of intangibles     7,383       1,295       6,088       0.46       0.49       2,542       503       2,039       0.15       0.16  
    Unrealized foreign currency exchange (gains) losses     (12,913 )     (2,995 )     (9,918 )     (0.75 )     (0.79 )     (529 )     (127 )     (402 )     (0.03 )     (0.03 )
    Non-GAAP measures   $ 49,883     $ 10,410     $ 37,813     $ 2.86     $ 3.02     $ 47,727     $ 9,460     $ 38,267     $ 2.89     $ 3.04  
     
    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    (2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.
    (3) Individual amounts of earnings per share may not agree to the total due to rounding.
    (4) In the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented.

    The MIL Network –

  • MIL-OSI USA: Tuberville Chairs First HELP Subcommittee Hearing

    US Senate News:

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

    MIL OSI USA News –

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

    US Senate News:

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

    MIL OSI USA News –

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

    US Senate News:

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

    MIL OSI USA News –

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

    US Senate News:

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

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

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

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

    MIL OSI USA News –

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

    US Senate News:

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

    MIL OSI USA News –

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

    US Senate News:

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

    MIL OSI USA News –

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

    US Senate News:

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

    MIL OSI USA News –

  • MIL-OSI Security: Security News: Arizona Woman Sentenced for $17M Information Technology Worker Fraud Scheme that Generated Revenue for North Korea

    Source: United States Department of Justice

    An Arizona woman was sentenced today to 102 months in prison for her role in a fraudulent scheme that assisted North Korean Information Technology (IT) workers posing as U.S. citizens and residents with obtaining remote IT positions at more than 300 U.S. companies. The scheme generated more than $17 million in illicit revenue for Chapman and for the Democratic People’s Republic of Korea (DPRK or North Korea).

    Christina Marie Chapman, 50, of Litchfield Park, Arizona, pleaded guilty on Feb. 11 in the District of Columbia to conspiracy to commit wire fraud, aggravated identity theft, and conspiracy to launder monetary instruments. In addition to the 102-month prison term, U.S. District Court Judge Randolph D. Moss ordered Chapman to serve three years of supervised release, to forfeit $284,555.92 that was to be paid to the North Koreans, and to pay a judgment of $176,850.

    “Christina Chapman perpetrated a years’ long scheme that resulted in millions of dollars raised for the DPRK regime, exploited more than 300 American companies and government agencies, and stole dozens of identities of American citizens,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “Chapman made the wrong calculation: short term personal gains that inflict harm on our citizens and support a foreign adversary will have severe long term consequences.  I encourage companies to remain vigilant of these cyber threats, and warn individuals who may be tempted by similar schemes to take heed of today’s sentence.”

    “North Korea is not just a threat to the homeland from afar. It is an enemy within. It is perpetrating fraud on American citizens, American companies, and American banks. It is a threat to Main Street in every sense of the word,” said U.S. Attorney Jeanine Ferris Pirro for the District of Columbia. “The call is coming from inside the house. If this happened to these big banks, to these Fortune 500, brand name, quintessential American companies, it can or is happening at your company. Corporations failing to verify virtual employees pose a security risk for all. You are the first line of defense against the North Korean threat.”

    “The North Korean regime has generated millions of dollars for its nuclear weapons program by victimizing American citizens, businesses, and financial institutions,” said Assistant Director Rozhavsky of the FBI’s Counterintelligence Division. “However, even an adversary as sophisticated as the North Korean government can’t succeed without the assistance of willing U.S. citizens like Christina Chapman, who was sentenced today for her role in an elaborate scheme to defraud more than 300 American companies by helping North Korean IT workers gain virtual employment and launder the money they earned. Today’s sentencing demonstrates that the FBI will work tirelessly with our partners to defend the homeland and hold those accountable who aid our adversaries.”

    “The sentencing today demonstrates the great lengths to which the North Korean government will go in its efforts and resources to fund its illicit activities. The FBI continues to pursue these threat actors to disrupt their network and hold those accountable wherever they may be,” said Special Agent in Charge Heith Janke of the FBI Phoenix Field Office.

    “Today’s sentencing brings justice to the victims whose identities were stolen for this international fraud scheme,” said Special Agent in Charge Carissa Messick of the IRS Criminal Investigation (IRS-CI) Phoenix Field Office. “The scheme was elaborate. If this sentencing proves anything, it’s that no amount of obfuscation will prevent IRS-CI and our law enforcement partners from tracking down those that wish to steal the identities of U.S. nationals, launder money, or engage in criminality that jeopardizes national security.”

    The case involved one of the largest North Korean IT worker fraud schemes charged by the Department of Justice, with 68 identities stolen from victims in the United States and 309 U.S. businesses and two international businesses defrauded.

    According to court documents, North Korea has deployed thousands of highly skilled IT workers around the world, including to the United States, to obtain remote employment using false, stolen, or borrowed identities of U.S. persons. To circumvent controls employed by U.S. companies to prevent the hiring of illicit overseas IT workers, the North Korean IT workers obtain assistance from U.S.-based collaborators.

    Chapman helped North Korean IT workers obtain jobs at 309 U.S. companies, including Fortune 500 corporations. The impacted companies included a top-five major television network, a Silicon Valley technology company, an aerospace manufacturer, an American car maker, a luxury retail store, and a U.S media and entertainment company. Some of the companies were targeted by the IT workers, who maintained a repository of postings for companies that they wanted to employ them. The IT workers also attempted to obtain employment at two different U.S. government agencies, although these efforts were generally unsuccessful.

    Chapman operated a “laptop farm” where she received and hosted computers from the U.S. companies at her home, deceiving the companies into believing that the work was being performed in the United States. Chapman also shipped 49 laptops and other devices supplied by U.S. companies to locations overseas, including multiple shipments to a city in China on the border with North Korea. More than 90 laptops were seized from Chapman’s home following the execution of a search warrant in October 2023.

    Christina Chapman organized and stored U.S. company laptops in her home, and included notes identifying the U.S. company and identity associated with each laptop.

    Much of the millions of dollars in income generated by the scheme was falsely reported to the IRS and Social Security Administration in the names of actual U.S. individuals whose identities had been stolen or borrowed. Additionally, Chapman received and forged payroll checks in the names of the stolen identities used by the IT workers and received IT workers’ wages through direct deposit from U.S. companies into her U.S. financial accounts. Chapman further transferred the proceeds from the scheme to individuals overseas.

    This case was investigated by the FBI Phoenix Field Office, and the IRS-CI Phoenix Field Office. Assistance was provided by the FBI Chicago Field Office.

    Trial Attorney Ashley R. Pungello of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Karen P. Seifert for the District of Columbia prosecuted the case, with assistance from Paralegal Specialist Jorge Casillas. Assistant U.S. Attorney Joshua Rothstein for the District of Columbia, the Victim Witness Unit, the U.S. Attorney’s Office for the District of Arizona, and the National Security Division’s National Security Cyber Section also provided assistance.

    ***

    In a coordinated effort, FBI Phoenix also issued guidance for HR professionals on detecting North Korean IT workers, and the Department of State issued guidance on the North Korean IT worker threat.

    Prior guidance was issued by the FBI, State Department, and the Department of the Treasury on this threat in a May 2022 advisory, and by the United States and the Republic of Korea (South Korea) in October 2023. The FBI issued updated guidance in May 2024 regarding the use of U.S. persons acting as facilitators by providing a U.S.-based location for U.S. companies to send devices and a U.S.-based internet connection for access to U.S. company networks and in January 2025 concerning the extortion and theft of sensitive company data by North Korean IT workers, along with recommended mitigations.

    MIL Security OSI –

  • MIL-OSI USA: Issa, Stefanik Introduce the Modern Firearm Safety Act

    Source: United States House of Representatives – Congressman Darrell Issa (CA-50)

    WASHINGTON, D.C. – Today, Congressman Darrell Issa (CA-48) and Congresswoman Elise Stefanik (NY-21) reintroduced legislation to eliminate unconstitutional handgun rosters that prevent law-abiding citizens in California and New York from freely purchasing modern handgun models.   

    “For decades, the clear Constitutional rights of law-abiding gun owners have been targeted for elimination, and handgun rosters are only one of the cynical schemes used to undermine the Second Amendment through the pretense of firearm safety,” said Rep. Issa. “These rosters impose excessive and unnecessary requirements that actually restrict access to firearms equipped with the most up-to-date safety features, and that’s why I’m proud to partner with my friend Rep. Stefanik to defend sacred rights and end these unjust restrictions.”

    The Modern Firearm Safety Act prohibits all states from requiring gun manufacturers to adopt costly and unnecessary features – including loaded chamber indicators, magazine disconnect mechanisms, and microstamping – to sell firearms nationwide.  

    “I am proud to re-introduce the Modern Firearm Safety Act to end the unconstitutional gun-grabbing agenda thrust on law-abiding New York residents by Far-Left Democrats like Kathy Hochul. This legislation would ban Albany Democrats from imposing illegal handgun roster requirements meant to deter gun ownership. I will always protect American citizens’ Second Amendment rights and provide a critical check to any entity attempting to encroach on their liberties,” said Chairwoman Stefanik. 

    “Liberal states use handgun rosters to violate the Second Amendment rights of law-abiding citizens. The Modern Firearm Safety Act will put a stop to these unconstitutional rosters and uphold Americans’ right to bear arms,” said Rep. Gooden. 

    “Gun control governors are far too ready and willing to sign into law antigun policies sent to their desks by legislatures that do not respect the Second Amendment rights of law-abiding Americans. That includes policies passed under the guise of ‘gun safety,’ that penalize responsible and lawful gun owners while doing nothing to improve community safety or hold criminals accountable,” said Lawrence G. Keane, NSSF Senior Vice President for Government and Public Affairs. “The Modern Firearm Safety Act, sponsored by Congressman Darrell Issa (R-CA) and House Republican Leadership Chairwoman Elise Stefanik (R-NY), would ban states from enacting laws mandating unproven and unconstitutional infringements and would instead protect the Constitutional rights of law-abiding citizens and the highly regulated, lawful businesses that provide the means necessary for citizens to exercise their right to keep and bear arms. NSSF thanks Congressman Issa and Chairwoman Stefanik for their leadership on this effort.”

    “By eliminating outdated, burdensome, and unnecessary restrictions, the Modern Firearm Safety Act ensures access to safer, more advanced firearms for law-abiding citizens,” said Brian R. Marvel, President of the Peace Officers Research Association of California (PORAC). “We appreciate Representative Issa’s leadership on this critical legislation that upholds constitutional rights while ensuring peace officers and responsible citizens have access to modern, safe firearms essential for their duties and personal safety.”

    For too long, states like California and New York have attempted to end-run the rights of law-abiding Americans by requiring them to select from a limited, pre-approved “handgun roster,” solely designed to restrict the sale of new semi-automatic handguns. These rosters mandate unwanted and unnecessary features that go beyond the industry standard, driving up costs while limiting the ability to purchase a safe and reliable firearm best suited for that individual’s situation,” said John Commerford, Executive Director of NRA-ILA. “The NRA thanks Representatives Darrell Issa and Elise Stefanik for their leadership on this issue and applauds the introduction of this vital legislation that would ensure the ability of NRA members and lawful firearm owners everywhere to exercise their Second Amendment rights as they see fit.”

    Cosponsors include: Congresswoman Claudia Tenney (NY-24), Congressman Mike Collins (GA-10), Congressman Lance Gooden (TX-05), Congressman Andy Biggs (AZ-05), Congressman Pat Fallon (TX-04), Congressman Cory Mills (FL-07), and Congressman Chuck Fleischmann (TN-03). 

    The bill text can be found here.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: Senator Baldwin Statement on Governor Evers’ Retirement

    US Senate News:

    Source: United States Senator for Wisconsin Tammy Baldwin

    WASHINGTON, D.C. – Today, U.S. Senator Tammy Baldwin (D-WI) released the following statement on Governor Tony Evers’ announcement that he will not seek reelection in 2026:

    “Wisconsin is lucky to have had Tony Evers leading our state. He has always put Wisconsin – and Wisconsin’s children – first, and we will continue to see those benefits for generations to come. The Governor’s commitment to every kid’s education, our teachers, and public schools will undoubtedly shape our future for the better and be a cornerstone of his legacy. His steady hand led us through a once-in-a-generation pandemic, and Wisconsin came out the other side with a strong economy, record low unemployment, and a strong sense of community that bonds us all.

    “Tony embodies the best of the Wisconsin way – he knows what is right and is willing to fight for it, but is level-headed, Midwestern nice, and always willing to bridge divides if it’s right for our state. The Governor faced tough headwinds to progress, but it never stopped him. I am grateful to call Tony a friend and am ‘jazzed as hell’ to see what comes next for him and Kathy. Thank you for all you have done for Wisconsin, Tony.”
     

    MIL OSI USA News –

  • MIL-OSI USA: Padilla Rejects Lifetime Judicial Appointment of Unfit Trump Loyalist Emil Bove

    US Senate News:

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

    WASHINGTON, D.C. — Today, U.S. Senator Alex Padilla (D-Calif.), a member of the Senate Judiciary Committee, issued the following statement after voting against advancing the nomination of Third Circuit Court of Appeals nominee Emil Bove, one of Trump’s personal lawyers with an extensive track record of spreading misinformation and enacting political retribution:

    “With their votes today, Republicans turned a blind eye to Emil Bove’s lies, vindictiveness, and abuse of power to rubber-stamp one of President Trump’s most dangerous judicial nominees.

    “This is a man who dropped the charges against New York Mayor Eric Adams in exchange for his cooperation with the President’s cruel anti-immigrant agenda. A man who fired the investigators and prosecutors uncovering the truth about the January 6 insurrection. A man who has vowed to ignore courts’ lawful orders when they keep the President from doing what he wants.

    “President Trump’s litmus test for selecting his nominees is not experience or dedication to our country, or commitment to the truth or the rule of law — it’s only loyalty to him and his extreme agenda. Bove has made it clear that he won’t let the law prevent him from satisfying the President’s whims. My colleagues have one last chance to uphold their advice and consent responsibilities and reject Bove’s final confirmation.”

    Last week, Padilla and Senate Judiciary Committee Democrats boycotted Bove’s markup vote in response to Republicans’ flagrant violation of Committee rules to jam the nominees through without debate. Padilla also joined CNN’s “The Lead with Jake Tapper” to speak out against Bove’s extensive track record of unethical and unprofessional conduct and political retaliation.

    During Bove’s Senate Judiciary Committee nomination hearing, Padilla slammed him for his role in firing dozens of Department of Justice (DOJ) prosecutors who worked on January 6 cases and the DOJ’s decision to drop the corruption charges against New York Mayor Eric Adams in exchange for assistance with President Trump’s mass deportations. Last week, Padilla joined Senate Judiciary Committee Democrats in calling for Chairman Chuck Grassley (R-Iowa) to schedule a hearing to collect testimony from Mr. Erez Reuveni, former Acting Deputy Director for the Office of Immigration Litigation at the Department of Justice, who disclosed allegations of misconduct and documentation regarding Bove. Previously, Padilla joined Senate Judiciary Democrats in requesting personnel records relevant to Bove from Interim U.S. Attorney for the Southern District of New York Jay Clayton. Padilla and Senate Judiciary Democrats also filed a professional misconduct complaint against Bove with the New York State Bar, citing reported misconduct in moving to dismiss charges against Mayor Adams.

    MIL OSI USA News –

  • MIL-OSI USA News: Fact Sheet: President Donald J. Trump Takes Action to End Crime and Disorder on America’s Streets

    Source: US Whitehouse

    ENDING VAGRANCY AND RESTORING ORDER: Today, President Donald J. Trump signed an Executive Order to restore order to American cities and remove vagrant individuals from our streets, redirecting federal resources toward programs that tackle substance abuse and returning to the acute necessity of civil commitment.

    • The Order directs the Attorney General to reverse judicial precedents and end consent decrees that limit State and local governments’ ability to commit individuals on the streets who are a risk to themselves or others.  
    • The Order requires the Attorney General to work with the Secretary of Health and Human Services, Secretary of Housing and Urban Development, and the Secretary of Transportation to prioritize grants for states and municipalities that enforce prohibitions on open illicit drug use, urban camping and loitering, and urban squatting, and track the location of sex offenders.
    • The Order redirects funding to ensure that individuals camping on streets and causing public disorder and that are suffering from serious mental illness or addiction are moved into treatment centers, assisted outpatient treatment, or other facilities.
    • The Order ensures discretionary grants for substance use disorder prevention, treatment, and recovery do not fund drug injection sites or illicit drug use.
    • The Order stops sex offenders who receive homelessness assistance from being housed with children, and allows programs to exclusively house women and children.

    ENSURING AMERICANS FEEL SAFE IN THEIR OWN CITIES AND TOWNS: President Trump is taking a new approach focused on protecting public safety because surrendering our cities and citizens to disorder and fear is neither compassionate to the homeless nor to other citizens. 

    • The number of individuals living on the streets in the United States on a single night during the last year of the Biden administration—274,224 —was the highest ever recorded.
    • The overwhelming majority of these individuals are addicted to drugs, have a mental health disorder, or both.
    • Federal and state governments have spent tens of billions of dollars on failed programs that address homelessness but not its root causes, leaving other citizens vulnerable to public safety threats.
    • Shifting these individuals into long-term institutional settings for humane treatment is the most proven way to restore public order. 

    MAKING AMERICA SAFE AGAIN: President Trump is committed to ending homelessness across America. 

    • In 2023, President Trump said: “We will use every tool, lever, and authority to get the homeless off our streets. We want to take care of them, but they have to be off our streets.”
    • In March 2025, President Trump signed an Executive Order to beautify Washington D.C., directing the National Park Service to clear all homeless encampments and graffiti on Federal lands.
    • In May 2025, President Trump signed an Executive Order establishing the National Center for Warrior Independence, a place where homeless veterans can go to receive the care, benefits, and services to which they are entitled.
    • As part of First Lady Melania Trump’s BE BEST Initiative, the Department of Housing and Urban Development announced a $1.8 million dollar investment to prevent homelessness among young Americans aging out of the foster care system.

    MIL OSI USA News –

  • MIL-OSI Australia: Backing Australia’s tourism, hospitality and travel sectors

    Source: Australian Attorney General’s Agencies

    Australia’s Tourism, Hospitality and Travel industries have a powerful new tool to attract, retain and train workers with the launch of eeger.

    The Albanese Labor Government, working in partnership with Accommodation Australia, is proud to launch this government-funded, industry-led national careers and training platform.

    Australia’s Tourism, Hospitality and Travel industries help put Australia on the map, with the workforce that make up the industry becoming the public face of our world class experiences, accommodation and food offerings.

    With workforce demand in the industry expected to grow by nearly 150,000 by 2033, eeger will go a long way to ensuring the future sustainability of Australia’s tourism, hospitality and travel sectors.

    The visitor economy is vital to Australia. It supports over 706,000 jobs – that’s one in every 23 jobs across the nation. It underpins more than 360,000 businesses, from hotels to tour operators, cafes to cultural centres – these are businesses that keep our communities vibrant and connected.

    eeger brings together job vacancies, training programs and career development resources into one, easy-to-use, digital platform, connecting jobseekers, employers and educators across these rapidly growing sectors.

    This groundbreaking initiative will tackle long-standing workforce challenges for the sector, helping to build a stronger, more resilient visitor economy.

    eeger was made possible by a $10 million grant from the Albanese Labor Government to strengthen the country’s visitor economy and secure the skilled workforce it needs for the future.

    eeger isn’t just a job board. It brings together job opportunities, training programs and career development in one place, making it easier for Australians to enter and grow within these vital industries.

    Quotes attributable to the Minister for Trade and Tourism Don Farrell:

    “The launch of eeger marks a pivotal moment for the industry, offering a national perspective for tourism, travel and hospitality job seekers to find the right opportunities and for employers to access the skilled workforce they need.

    “The Albanese Labor Government is proud to support this innovative platform, which will help rebuild and future-proof Australia’s visitor economy.

    “My first job was in tourism, and I know firsthand how magnificent this industry is to be a part of. I encourage businesses and jobseekers to sign up and make the most of this innovative platform and join this vibrant and important sector.”

    General Manager of eeger, Emilie Howe:

    “eeger is more than a job platform – it’s built by industry, for industry. It’s a unique solution that centralises career, job and training information for our workforce needs – the first of its kind on a national scale.

    “We encourage all businesses in Tourism, Hospitality and Travel, no matter the size, to sign up and take advantage of the free eeger platform.”

    Quotes attributable to Accommodation Australia CEO, James Goodwin:

    “We’re proud to have worked with so many sectors to develop such an innovative platform that responds exactly to what the industry needs.”

    MIL OSI News –

  • MIL-OSI: Lake Shore Bancorp, Inc. Declares Dividend

    Source: GlobeNewswire (MIL-OSI)

    DUNKIRK, N.Y., July 24, 2025 (GLOBE NEWSWIRE) — Lake Shore Bancorp, Inc. (“Lake Shore Bancorp”) (NASDAQ: LSBK), the holding company for Lake Shore Bank (the “Bank”), announced today that the Board of Directors declared a cash dividend of $0.09 per share on its outstanding common stock on July 23, 2025. The dividend is expected to be paid on August 13, 2025 to stockholders of record as of August 4, 2025.

    About Lake Shore

    Lake Shore Bancorp is the holding company of Lake Shore Bank, a New York chartered, community-oriented financial institution headquartered in Dunkirk, New York. The Bank has ten full-service branch locations in Western New York, including four in Chautauqua County and six in Erie County. The Bank offers a broad range of retail and commercial lending and deposit services. Lake Shore Bancorp’s common stock is traded on the NASDAQ Global Market as “LSBK”. Additional information about Lake Shore Bancorp is available at www.mylsbank.com.

    Safe-Harbor

    This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are based on current expectations, estimates and projections about Lake Shore Federal Bancorp’s, Lake Shore Bancorp, Inc.’s (collectively, the “Company”) and the Bank’s industry, and management’s beliefs and assumptions. Words such as anticipates, expects, intends, plans, believes, estimates and variations of such words and expressions are intended to identify forward-looking statements. Such statements reflect management’s current views of future events and operations. These forward-looking statements are based on information currently available to the Company as of the date of this release. It is important to note that these forward-looking statements are not guarantees of future performance and involve and are subject to significant risks, contingencies, and uncertainties, many of which are difficult to predict and are generally beyond our control including, but not limited to, data loss or other security breaches, including a breach of our operational or security systems, policies or procedures, including cyber-attacks on us or on our third party vendors or service providers, economic conditions, the effect of changes in monetary and fiscal policy, inflation, tariffs, unanticipated changes in our liquidity position, climate change, geopolitical conflicts, public health issues, increased unemployment, deterioration in the credit quality of the loan portfolio and/or the value of the collateral securing repayment of loans, reduction in the value of investment securities, the cost and ability to attract and retain key employees, regulatory or legal developments, tax policy changes, dividend policy changes and our ability to implement and execute our business plan and strategy and expand our operations. These factors should be considered in evaluating forward looking statements and undue reliance should not be placed on such statements, as our financial performance could differ materially due to various risks or uncertainties. We do not undertake to publicly update or revise our forward-looking statements if future changes make it clear that any projected results expressed or implied therein will not be realized.

    Source: Lake Shore Bancorp, Inc.
    Category: Financial

    Investor Relations/Media Contact
    Kim C. Liddell
    President, CEO, and Director
    Lake Shore Bancorp, Inc.
    31 East Fourth Street
    Dunkirk, New York 14048
    (716) 366-4070 ext. 1012

    The MIL Network –

  • MIL-OSI: Gouverneur Bancorp, Inc. Approves Second Stock Repurchase Program

    Source: GlobeNewswire (MIL-OSI)

    GOUVERNEUR, N.Y., July 24, 2025 (GLOBE NEWSWIRE) — Gouverneur Bancorp, Inc. (OTCQB Marketplace: GOVB) (the “Company”), the holding company for Gouverneur Savings and Loan Association, announced today that its Board of Directors has approved a new stock repurchase program authorizing the repurchase of up to 52,778 shares, or 5%, of the Company’s outstanding common stock. Stock repurchases will be conducted through open market purchases, which will include purchases under a trading plan adopted pursuant to Securities and Exchange Commission Rule 10b5-1, or through privately negotiated transactions. Repurchases will be made from time to time depending on market conditions and other factors. The Company’s new stock repurchase program will terminate upon the completion of the purchase of 52,778 shares or on July 24, 2026 if not all shares have been purchased by that date.

    On December 11, 2024, the Company announced its first stock repurchase program, which authorized the purchase of up to 55,356 shares. Under this previously announced program, 51,569 shares of common stock have been repurchased at a cost of $634,000, or $12.29 per share. As of July 23, 2025, there are 3,787 shares remaining to be repurchased under this existing program.

    About Gouverneur Bancorp, Inc.

    Gouverneur Bancorp, Inc. is the holding company for Gouverneur Savings and Loan Association, which is a New York chartered savings and loan association founded in 1892 that offers deposit and loan services for businesses, families and individuals. At June 30, 2025, the Company had total assets of $196.7 million, total deposits of $159.4 million and total stockholders’ equity of $31.4 million.

    Forward-Looking Statements

    This press release may contain forward-looking statements, which can be identified by the use of words such as “believes,” “expects,” “anticipates,” “estimates” or similar expressions. Such forward-looking statements and all other statements that are not historic facts are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. These factors include, among others, the following: changes in interest rates; national and regional economic conditions; legislative and regulatory changes; monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board; the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; the size, quality and composition of the loan or investment portfolios; demand for loan products; deposit flows and our ability to effectively manage liquidity; competition; demand for financial services in our market area; changes in real estate market values in our market area; changes in relevant accounting principles and guidelines; our ability to attract and retain key employees; our ability to maintain the security of our data processing and information technology systems; and that the Company may not be successful in the implementation of its business strategy. Additionally, other risks and uncertainties are described in the Company’s Annual Report on Form 10-K for the year ended September 30, 2024 and other reports the Company files with the SEC, which are available through the SEC’s EDGAR website located at www.sec.gov. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Should one or more of these risks materialize, actual results may vary from those anticipated, estimated or projected.

    Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

    CONTACT: Charles C. Van Vleet, Jr.
      Interim President and Chief Executive Officer
      (315) 287-2600

    The MIL Network –

  • MIL-OSI: Gouverneur Bancorp, Inc. Approves Second Stock Repurchase Program

    Source: GlobeNewswire (MIL-OSI)

    GOUVERNEUR, N.Y., July 24, 2025 (GLOBE NEWSWIRE) — Gouverneur Bancorp, Inc. (OTCQB Marketplace: GOVB) (the “Company”), the holding company for Gouverneur Savings and Loan Association, announced today that its Board of Directors has approved a new stock repurchase program authorizing the repurchase of up to 52,778 shares, or 5%, of the Company’s outstanding common stock. Stock repurchases will be conducted through open market purchases, which will include purchases under a trading plan adopted pursuant to Securities and Exchange Commission Rule 10b5-1, or through privately negotiated transactions. Repurchases will be made from time to time depending on market conditions and other factors. The Company’s new stock repurchase program will terminate upon the completion of the purchase of 52,778 shares or on July 24, 2026 if not all shares have been purchased by that date.

    On December 11, 2024, the Company announced its first stock repurchase program, which authorized the purchase of up to 55,356 shares. Under this previously announced program, 51,569 shares of common stock have been repurchased at a cost of $634,000, or $12.29 per share. As of July 23, 2025, there are 3,787 shares remaining to be repurchased under this existing program.

    About Gouverneur Bancorp, Inc.

    Gouverneur Bancorp, Inc. is the holding company for Gouverneur Savings and Loan Association, which is a New York chartered savings and loan association founded in 1892 that offers deposit and loan services for businesses, families and individuals. At June 30, 2025, the Company had total assets of $196.7 million, total deposits of $159.4 million and total stockholders’ equity of $31.4 million.

    Forward-Looking Statements

    This press release may contain forward-looking statements, which can be identified by the use of words such as “believes,” “expects,” “anticipates,” “estimates” or similar expressions. Such forward-looking statements and all other statements that are not historic facts are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors. These factors include, among others, the following: changes in interest rates; national and regional economic conditions; legislative and regulatory changes; monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Federal Reserve Board; the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts; the size, quality and composition of the loan or investment portfolios; demand for loan products; deposit flows and our ability to effectively manage liquidity; competition; demand for financial services in our market area; changes in real estate market values in our market area; changes in relevant accounting principles and guidelines; our ability to attract and retain key employees; our ability to maintain the security of our data processing and information technology systems; and that the Company may not be successful in the implementation of its business strategy. Additionally, other risks and uncertainties are described in the Company’s Annual Report on Form 10-K for the year ended September 30, 2024 and other reports the Company files with the SEC, which are available through the SEC’s EDGAR website located at www.sec.gov. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Should one or more of these risks materialize, actual results may vary from those anticipated, estimated or projected.

    Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.

    CONTACT: Charles C. Van Vleet, Jr.
      Interim President and Chief Executive Officer
      (315) 287-2600

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    WARSAW, N.Y., July 24, 2025 (GLOBE NEWSWIRE) — Financial Institutions, Inc. (NASDAQ: FISI) (the “Company,” “we” or “us”), parent company of Five Star Bank (the “Bank”) and Courier Capital, LLC (“Courier Capital”), today reported financial and operational results for the second quarter ended June 30, 2025.

    The Company reported net income of $17.5 million in the second quarter of 2025, compared to $16.9 million in the first quarter of 2025 and $25.6 million in the second quarter of 2024. After preferred dividends, net income available to common shareholders was $17.2 million, or $0.85 per diluted share, in the second quarter of 2025, compared to $16.5 million, or $0.81 per diluted share, in the first quarter of 2025, and $25.3 million, or $1.62 per diluted share, in the second quarter of 2024. The Company recorded a provision for credit losses of $2.6 million in the current quarter, compared to $2.9 million in the linked quarter and $2.0 million in the prior year quarter.

    Second Quarter 2025 Highlights:

    • Net interest margin of 3.49% for second quarter of 2025 was up 14 and 62 basis points from the linked and year-ago quarters, respectively, while net interest income of $49.1 million for second quarter of 2025 increased $2.3 million, or 4.8%, from the first quarter of 2025 and $7.9 million, or 19.2%, from the second quarter of 2024.
    • Noninterest income was $10.6 million in the second quarter of 2025, compared to $10.4 million in the linked quarter and $24.0 million in the year-ago quarter, when results benefited from a $13.5 million pre-tax gain associated with the sale of the Company’s insurance business.
    • Total loans were $4.54 billion at June 30, 2025, reflecting a decrease of $17.3 million, or 0.4%, from March 31, 2025, driven by a decrease in our consumer indirect lending portfolio as pay-downs exceeded originations, and an increase of $74.5 million, or 1.7%, from one year prior.
    • Total deposits were $5.16 billion at June 30, 2025, down $216.9 million, or 4.0%, from March 31, 2025, driven by both seasonal public deposit outflows and the previously announced wind-down of the Company’s Banking-as-a-Service, or BaaS, offering, and relatively flat compared to one year prior.
    • Nonperforming assets to total assets were 0.53% at June 30, 2025, down from 0.63% at the linked quarter-end and up from 0.41% one year prior.

    “Second quarter 2025 financial results were highlighted by continued margin expansion, increased net interest income and durable noninterest revenues, which allowed us to deliver 4% growth in net income available to common shareholders from the linked first quarter,” said President and Chief Executive Officer Martin K. Birmingham. “Profitability continues to be a paramount focus, and we were pleased to maintain an efficiency ratio below 60% and report solid annualized return on average assets and return on average equity of 1.13% and 11.78%, respectively, for the most recent quarter.

    “Deposit balances reflect typical seasonality within our public deposit portfolio and total loans were relatively flat with the end of the first quarter, as commercial business lending growth was more than offset by a reduction in consumer indirect balances. Given our strong first quarter loan production and existing pipelines, we continue to expect low single-digit full year loan growth that aligns with our credit-disciplined philosophy.”

    Chief Financial Officer and Treasurer W. Jack Plants II added, “Our results continue to benefit from our team’s focus on prudent balance sheet stewardship through redeployment of cash flows into higher yielding assets, active investment portfolio management and our ability to effectively reprice deposits, supporting a six basis point reduction in our overall cost of funds. Expenses in the second quarter were somewhat elevated, in part reflecting timing of certain expenses and some higher costs that we expect to be nonrecurring, and we will remain intently focused on expense management through the coming quarters to support positive operating leverage in 2025.”

    Net Interest Income and Net Interest Margin

    Net interest income was $49.1 million for the second quarter of 2025, an increase of $2.3 million from the first quarter of 2025, and an increase of $7.9 million from the second quarter of 2024.

    Average interest-earning assets for the current quarter of $5.65 billion were flat with the first quarter of 2025, as a $46.9 million increase in average loans was offset by a $32.7 million decrease in the average balance of Federal Reserve interest-earning cash and a $14.0 million decrease in the average balance of investment securities. Average interest-earning assets decreased $114.5 million from the second quarter of 2024, as a $123.2 million decrease in the average balance of investment securities and a $95.1 million decrease in the average balance of Federal Reserve interest-earning cash were partially offset by a $103.8 million increase in average loans.

    Average interest-bearing liabilities for the current quarter were $4.52 billion, reflecting an increase of $11.6 million from the linked quarter and a decrease of $29.8 million from the year-ago quarter. The increase from the first quarter of 2025 was primarily due to a $66.4 million increase in average time deposits that was partially offset by a $23.1 million decrease in average savings and money market deposits, a $14.2 million decrease in average interest-bearing demand deposits, a $9.1 million decrease in average short-term borrowings, and an $8.4 million decrease in average long-term borrowings. The year-over-year decrease was due to an $83.4 million decrease in average savings and money market deposits, a $54.0 million decrease in average short-term borrowings, a $10.0 million decrease in average interest-bearing demand deposits, and an $8.2 million decrease in average long-term borrowings, partially offset by a $125.7 million increase in average time deposits. The continued outflow of BaaS-related deposits, following the Company’s September 2024 announcement that it would wind-down its BaaS platform, was the primary driver of the reduction in average savings and money market deposits from the linked and year-ago periods.

    Net interest margin was 3.49% in the current quarter as compared to 3.35% in the first quarter of 2025, and 2.87% in the second quarter of 2024. Expansion from the linked quarter was due to increases in the average yields of both investment securities and loans, as well as lower average cost of interest-bearing liabilities, reflecting repricing of non-public and reciprocal deposits. Year-over-year margin expansion was driven by an increase in the average yield on investment securities, following the previously disclosed restructuring of the available-for-sale securities portfolio in December 2024, which supported an increase in the average yield on interest-earning assets.

    Noninterest Income

    The Company reported noninterest income of $10.6 million for the second quarter of 2025, compared to $10.4 million in the first quarter of 2025 and $24.0 million in the second quarter of 2024.

    • The Company’s sale of its former insurance subsidiary generated a net gain of $13.5 million in the second quarter of 2024.
    • Investment advisory income of $2.9 million was $148 thousand higher than the first quarter of 2025 and up $106 thousand from the second quarter of 2024.
    • Income from company-owned life insurance (“COLI”) of $3.0 million was $188 thousand higher than the first quarter of 2025 and $1.6 million higher than the second quarter of 2024, due to the previously disclosed restructuring of a portion of the Company’s COLI portfolio into higher-yielding separate account policies in January 2025.
    • Income from investments in limited partnerships of $307 thousand was $108 thousand lower than the first quarter of 2025 and $496 thousand lower than the second quarter of 2024. The Company has made several investments in limited partnerships, primarily small business investment companies, and accounts for these investments under the equity method. Income from these investments fluctuates based on the maturity and performance of the underlying investments.
    • Other noninterest income of $1.3 million was $292 thousand lower than the linked quarter and $227 thousand lower than the year-ago quarter.

    Noninterest Expense

    Noninterest expense was $35.7 million in the second quarter of 2025, compared to $33.7 million in the first quarter of 2025, and $33.0 million in the second quarter of 2024.

    • Salaries and employee benefits expense of $18.1 million was $1.2 million higher than the first quarter of 2025 and $2.3 million higher than the second quarter of 2024, reflecting an increase in health insurance benefits due to higher medical claims than in the linked quarter, while the increase from the prior year quarter was primarily due to annual merit increases.
    • Occupancy and equipment expense of $4.0 million reflects increases of $392 thousand and $534 thousand from the linked and year-ago quarters, respectively. The linked quarter increase was due in part to timing given a change in facilities maintenance service vendors, as well as costs associated with an ongoing ATM conversion, while the year-over-year variance was due in part to the ATM conversion and upgrade project.
    • Professional services expenses of $1.5 million were $240 thousand lower than the first quarter of 2025 and $343 thousand lower than the second quarter of 2024. The linked quarter variance was primarily due to the timing of audit related expenses, while the year-over-year variance was primarily attributable to legal expenses incurred in the second quarter of 2024 related to the Company’s previously disclosed deposit-related fraud event.
    • Computer and data processing expense of $5.9 million was $392 thousand higher than the first quarter of 2025 and $537 thousand higher than the second quarter of 2024. Both the linked quarter and year-over-year increases were driven by the timing of expenses for in-process technology enhancement and upgrade initiatives.
    • The Company recorded deposit-related charged-off items of $233 thousand for the current quarter, compared to charged-off recoveries of $294 thousand in the first quarter of 2025 and charged-off items of $398 thousand in the second quarter of 2024, with the linked quarter variance primarily driven by insurance proceeds received in the first quarter of 2025 related to a past commercial deposit charged-off item.
    • Other expense of $3.6 million was down $179 thousand from the linked quarter and down $381 thousand from the year-ago quarter, with the year-over-year variance primarily due to higher interest rate swap collateral charges in the second quarter of 2024.

    Income Taxes

    Income tax expense was $4.0 million for the second quarter of 2025, compared to $3.7 million in the first quarter of 2025 and $4.5 million in the second quarter of 2024. The Company also recognized federal and state tax benefits related to tax credit investments placed in service and/or amortized during the second quarter of 2025, first quarter of 2025, and second quarter of 2024, resulting in income tax expense reductions of $1.1 million, $1.1 million, and $1.3 million, respectively.

    The effective tax rate was 18.4% for the second quarter of 2025, 18.2% for the first quarter of 2025, and 15.0% for the second quarter of 2024. The effective tax rate fluctuates on a quarterly basis primarily due to the level of pre-tax earnings and may differ from statutory rates because of interest income from tax-exempt securities, earnings on COLI, the tax impact of the COLI repositioning, and the impact of tax credit investments.

    Balance Sheet and Capital Management

    Total assets were $6.14 billion at June 30, 2025, down $196.7 million from March 31, 2025, and flat with June 30, 2024.

    Investment securities were $1.01 billion at June 30, 2025, down $31.8 million from March 31, 2025, and flat with June 30, 2024.

    Total loans were $4.54 billion at June 30, 2025, a decrease of $17.3 million, or 0.4%, from March 31, 2025, and an increase of $74.5 million, or 1.7%, from June 30, 2024.

    • Commercial business loans totaled $726.2 million, up $17.1 million, or 2.4%, from March 31, 2025, and up $12.3 million, or 1.7%, from June 30, 2024.
    • Commercial mortgage loans totaled $2.22 billion, a decline of $13.1 million, or 0.6%, from March 31, 2025, and an increase of $129.3 million, or 6.2%, from June 30, 2024.
    • Residential real estate loans totaled $647.2 million, up $3.2 million, or 0.5%, from March 31, 2025, and down $470 thousand, or 0.1%, from June 30, 2024.
    • Consumer indirect loans totaled $833.5 million, down $19.7 million, or 2.3%, from March 31, 2025, and down $61.1 million, or 6.8%, from June 30, 2024.

    Total deposits were $5.16 billion at June 30, 2025, down $216.9 million, or 4.0%, from March 31, 2025, and up $22.7 million, or 0.4%, from June 30, 2024. The decrease from March 31, 2025 was primarily due to seasonally lower public deposit balances in addition to the outflow of BaaS-related deposits. The modest increase from June 30, 2024 reflected a higher level of brokered deposits, which were utilized to offset the anticipated reduction in BaaS-related deposits, as well as lower reciprocal deposit balances. The Company had approximately $7 million in BaaS-related deposits at June 30, 2025, compared to approximately $55 million at March 31, 2025 and approximately $108 million at June 30, 2024. Public deposit balances represented 21% of total deposits at June 30, 2025, 24% at March 31, 2025, and 20% at June 30, 2024.

    Short-term borrowings were $101.0 million at June 30, 2025, compared to $55.0 million at March 31, 2025, and $202.0 million at June 30, 2024. Short-term borrowings and brokered deposits have historically been utilized to manage the seasonality of public deposits.

    Shareholders’ equity was $601.7 million at June 30, 2025, compared to $589.9 million at March 31, 2025, and $467.7 million at June 30, 2024. The linked quarter period-end increase was due to net income, net of dividends, retained, while the year-over-year period end increase was primarily driven by additional paid-in-capital resulting from the common stock capital raise executed in the fourth quarter of 2024 and a decrease in accumulated other comprehensive loss between period ends following the investment securities restructuring in the fourth quarter of 2024.

    Common book value per share was $29.03 at June 30, 2025, an increase of $0.55, or 1.9%, from $28.48 at March 31, 2025, and a decrease of $0.08, or 0.3%, from $29.11 at June 30, 2024. Tangible common book value per share(1) was $26.02 at June 30, 2025, an increase of $0.56, or 2.2%, from $25.46 at March 31, 2025, and an increase of $0.85, or 3.4%, from $25.17 at June 30, 2024. The common equity to assets ratio was 9.51% at June 30, 2025, compared to 9.03% at March 31, 2025, and 7.34% at June 30, 2024. Tangible common equity to tangible assets(1), or the TCE ratio, was 8.61%, 8.15% and 6.41% at June 30, 2025, March 31, 2025, and June 30, 2024, respectively. The year-over-year increases in both ratios were attributable to the additional capital raised in the fourth quarter of 2024 and the decrease in accumulated other comprehensive loss as a result of the investment securities restructuring in the fourth quarter of 2024.

    During the second quarter of 2025, the Company declared a common stock dividend of $0.31 per common share, consistent with the linked quarter and reflecting an increase of $0.01, or 3.3%, over the year-ago quarter. The dividend returned more than 36% of second quarter net income to common shareholders.

    The Company’s regulatory capital ratios at June 30, 2025 continued to exceed all regulatory capital requirements to be considered well capitalized.

    • Leverage Ratio was 9.45% compared to 9.24% and 8.61% at March 31, 2025, and June 30, 2024, respectively.
    • Common Equity Tier 1 Capital Ratio was 10.84% compared to 10.38% and 10.03% at March 31, 2025, and June 30, 2024, respectively.
    • Tier 1 Capital Ratio was 11.17% compared to 10.71% and 10.36% at March 31, 2025, and June 30, 2024, respectively.
    • Total Risk-Based Capital Ratio was 13.27% compared to 13.09% and 12.65% at March 31, 2025, and June 30, 2024, respectively.

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

    Credit Quality

    Non-performing loans were $32.4 million, or 0.72% of total loans, at June 30, 2025, as compared to $40.0 million, or 0.88% of total loans, at March 31, 2025, and $25.2 million, or 0.57% of total loans, at June 30, 2024. The decrease from March 31, 2025 reflects a reduction of approximately $3.7 million in non-performing loans associated with the foreclosure of a participated loan secured by real estate, as well as a $1.9 million partial charge-off of a credit facility for which a specific reserve was in place. Both the aforementioned foreclosed participated loan and the partially charged-off credit facility relate to a previously disclosed commercial business relationship that was placed on nonaccrual status in the fourth quarter of 2023. The increase in non-performing loans from June 30, 2024 was primarily driven by one commercial loan relationship that was placed on nonaccrual status during the third quarter of 2024. Net charge-offs were $4.1 million, representing 0.36% of average loans on an annualized basis, for the current quarter, as compared to $2.4 million, or an annualized 0.21% of average loans, in the first quarter of 2025 and $1.1 million, or an annualized 0.10%, in the second quarter of 2024.

    At June 30, 2025, the allowance for credit losses on loans to total loans ratio was 1.04%, compared to 1.08% at March 31, 2025 and 0.99% at June 30, 2024.

    Provision for credit losses was $2.6 million in the current quarter, compared to $2.9 million in the linked quarter and $2.0 million in the prior year quarter. Provision for credit losses on loans was $2.4 million in the current quarter, compared to $3.3 million in the first quarter of 2025, and $2.0 million in the second quarter of 2024. The allowance for unfunded commitments, also included in provision for credit losses as required by the current expected credit loss standard (“CECL”), totaled $179 thousand in the second quarter of 2025, $364 thousand in the first quarter of 2025, and $43 thousand in the second quarter of 2024. The provision for credit losses for the second quarter of 2025 was driven by a combination of factors, including improvement in the forecasted loss rate for pooled loans and a reduction in specific reserves, partly offset by higher net charge-offs.

    The Company has remained strategically focused on the importance of credit discipline, allocating resources to credit and risk management functions as the loan portfolio has grown. The ratio of allowance for credit losses on loans to non-performing loans was 146% at June 30, 2025, 122% at March 31, 2025, and 174% at June 30, 2024, with the improvement from the end of the linked quarter reflective of the decrease in nonperforming loans reported at June 30, 2025.

    Subsequent Events

    The Company is required, under generally accepted accounting principles (“GAAP”), to evaluate subsequent events through the filing of its consolidated financial statements for the quarter ended June 30, 2025, on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of June 30, 2025, and will adjust amounts preliminarily reported, if necessary.

    Conference Call

    The Company will host an earnings conference call and audio webcast on July 25, 2025 at 8:30 a.m. Eastern Time. The call will be hosted by Martin K. Birmingham, President and Chief Executive Officer, and W. Jack Plants II, Chief Financial Officer and Treasurer. The live webcast will be available in listen-only mode on the Company’s website at www.FISI-investors.com. Within the United States, listeners may also access the call by dialing 1-833-470-1428 and providing the access code 652423. The webcast replay will be available on the Company’s website for at least 30 days.

    About Financial Institutions, Inc.

    Financial Institutions, Inc. (NASDAQ: FISI) is a financial holding company with approximately $6.1 billion in assets offering banking and wealth management products and services. Its Five Star Bank subsidiary provides consumer and commercial banking and lending services to individuals, municipalities and businesses through banking locations spanning Western and Central New York and a commercial loan production office serving the Mid-Atlantic region. Courier Capital, LLC offers customized investment management, consulting and retirement plan services to individuals, businesses, institutions, foundations and retirement plans. Learn more at Five-StarBank.com and FISI-Investors.com.

    Non-GAAP Financial Information

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

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

    Safe Harbor Statement

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

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

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

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

      2025     2024  
    SELECTED BALANCE SHEET DATA: June 30,     March 31,     December 31,     September 30,     June 30,  
    Cash and cash equivalents $ 93,034     $ 167,352     $ 87,321     $ 249,569     $ 146,347  
    Investment securities:                            
    Available for sale   916,149       926,992       911,105       886,816       871,635  
    Held-to-maturity, net   92,121       113,105       116,001       121,279       128,271  
    Total investment securities   1,008,270       1,040,097       1,027,106       1,008,095       999,906  
    Loans held for sale   2,356       387       2,280       2,495       2,099  
    Loans:                            
    Commercial business   726,218       709,101       665,321       654,519       713,947  
    Commercial mortgage–construction   536,552       566,359       582,619       533,506       518,013  
    Commercial mortgage–multifamily   496,223       475,867       470,954       467,527       463,171  
    Commercial mortgage–non-owner occupied   873,207       899,679       857,987       814,392       814,953  
    Commercial mortgage–owner occupied   309,171       286,391       288,036       290,216       289,733  
    Residential real estate loans   647,205       643,983       650,206       648,241       647,675  
    Residential real estate lines   75,675       74,769       75,552       76,203       75,510  
    Consumer indirect   833,452       853,176       845,772       874,651       894,596  
    Other consumer   38,299       43,953       42,757       43,734       43,870  
    Total loans   4,536,002       4,553,278       4,479,204       4,402,989       4,461,468  
    Allowance for credit losses – loans   47,291       48,964       48,041       44,678       43,952  
    Total loans, net   4,488,711       4,504,314       4,431,163       4,358,311       4,417,516  
    Total interest-earning assets   5,614,008       5,733,743       5,602,570       5,666,972       5,709,148  
    Goodwill and other intangible assets, net   60,564       60,651       60,758       60,867       60,979  
    Total assets   6,143,766       6,340,492       6,117,085       6,156,317       6,131,772  
    Deposits:                            
    Noninterest-bearing demand   940,341       945,182       950,351       978,660       939,346  
    Interest-bearing demand   704,871       773,475       705,195       793,996       711,580  
    Savings and money market   1,898,302       2,033,323       1,904,013       2,027,181       2,007,256  
    Time deposits   1,612,500       1,620,930       1,545,172       1,506,764       1,475,139  
    Total deposits   5,156,014       5,372,910       5,104,731       5,306,601       5,133,321  
    Short-term borrowings   101,000       55,000       99,000       55,000       202,000  
    Long-term borrowings, net   114,960       124,917       124,842       124,765       124,687  
    Total interest-bearing liabilities   4,431,633       4,607,645       4,405,912       4,507,706       4,520,662  
    Shareholders’ equity   601,668       589,928       568,984       500,342       467,667  
    Common shareholders’ equity   584,383       572,643       551,699       483,050       450,375  
    Tangible common equity(1)   523,838       511,992       490,941       422,183       389,396  
    Accumulated other comprehensive loss $ (42,214 )   $ (41,995 )   $ (52,604 )   $ (102,029 )   $ (125,774 )
                                 
    Common shares outstanding   20,128       20,110       20,077       15,474       15,472  
    Treasury shares   572       590       623       625       627  
    CAPITAL RATIOS AND PER SHARE DATA:                            
    Leverage ratio   9.45 %     9.24 %     9.15 %     8.98 %     8.61 %
    Common equity Tier 1 capital ratio   10.84 %     10.38 %     10.54 %     10.28 %     10.03 %
    Tier 1 capital ratio   11.17 %     10.71 %     10.87 %     10.62 %     10.36 %
    Total risk-based capital ratio   13.27 %     13.09 %     13.25 %     12.95 %     12.65 %
    Common equity to assets   9.51 %     9.03 %     9.02 %     7.85 %     7.34 %
    Tangible common equity to tangible assets(1)   8.61 %     8.15 %     8.11 %     6.93 %     6.41 %
                                 
    Common book value per share $ 29.03     $ 28.48     $ 27.48     $ 31.22     $ 29.11  
    Tangible common book value per share(1) $ 26.02     $ 25.46     $ 24.45     $ 27.28     $ 25.17  
                                           
    1. See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.

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

      Six Months Ended     2025     2024  
      June 30,     Second     First     Fourth     Third     Second  
    SELECTED STATEMENT OF OPERATIONS DATA: 2025     2024     Quarter     Quarter     Quarter     Quarter     Quarter  
    Interest income $ 163,918     $ 157,201     $ 82,867     $ 81,051     $ 78,119     $ 77,911     $ 78,788  
    Interest expense   67,932       75,926       33,745       34,187       36,486       37,230       37,595  
    Net interest income   95,986       81,275       49,122       46,864       41,633       40,681       41,193  
    Provision (benefit) for credit losses   5,490       (3,415 )     2,562       2,928       6,461       3,104       2,041  
    Net interest income after provision (benefit) for credit losses   90,496       84,690       46,560       43,936       35,172       37,577       39,152  
    Noninterest income:                                        
    Service charges on deposits   2,141       2,056       1,089       1,052       1,074       1,103       979  
    Insurance income   6       2,138       3       3       3       3       4  
    Card interchange income   3,777       3,910       1,937       1,840       2,045       1,900       2,008  
    Investment advisory   5,622       5,361       2,885       2,737       2,555       2,797       2,779  
    Company owned life insurance   5,742       2,658       2,965       2,777       1,425       1,404       1,360  
    Investments in limited partnerships   722       1,145       307       415       837       400       803  
    Loan servicing   303       333       180       123       295       88       158  
    Income (loss) from derivative instruments, net   589       551       339       250       (37 )     212       377  
    Net gain on sale of loans held for sale   257       212       140       117       186       220       124  
    Net loss on investment securities   3       –       3       –       (100,055 )     –       –  
    Net gain (loss) on the sale of other assets   –       13,495       –       –       (19 )     138       13,508  
    Net (loss) gain on tax credit investments   (1,026 )     31       (512 )     (514 )     (636 )     (170 )     406  
    Other   2,854       3,025       1,281       1,573       1,291       1,345       1,508  
    Total noninterest income (loss)   20,990       34,915       10,617       10,373       (91,036 )     9,440       24,014  
    Noninterest expense:                                        
    Salaries and employee benefits   34,968       33,088       18,070       16,898       17,159       15,879       15,748  
    Occupancy and equipment   7,572       7,200       3,982       3,590       3,791       3,370       3,448  
    Professional services   3,142       4,166       1,451       1,691       1,571       1,965       1,794  
    Computer and data processing   11,366       10,728       5,879       5,487       6,608       5,353       5,342  
    Supplies and postage   1,081       912       503       578       504       519       437  
    FDIC assessments   2,859       2,641       1,392       1,467       1,551       1,092       1,346  
    Advertising and promotions   837       737       495       342       465       371       440  
    Amortization of intangibles   212       331       105       107       109       112       114  
    Provision for litigation settlement   –       –       –       –       23,022       –       –  
    Deposit-related charged-off items (recoveries) expense   (61 )     19,577       233       (294 )     354       410       398  
    Restructuring charges   68       –       –       68       35       –       –  
    Other   7,323       7,653       3,572       3,751       4,235       3,398       3,953  
    Total noninterest expense   69,367       87,033       35,682       33,685       59,404       32,469       33,020  
    Income (loss) before income taxes   42,119       32,572       21,495       20,624       (115,268 )     14,548       30,146  
    Income tax expense (benefit)   7,709       4,873       3,963       3,746       (32,457 )     1,082       4,517  
    Net income (loss)   34,410       27,699       17,532       16,878       (82,811 )     13,466       25,629  
    Preferred stock dividends   729       729       364       365       365       365       364  
    Net income (loss) available to common shareholders $ 33,681     $ 26,970     $ 17,168     $ 16,513     $ (83,176 )   $ 13,101     $ 25,265  
    FINANCIAL RATIOS:                                        
    Earnings (loss) per share – basic $ 1.68     $ 1.75     $ 0.85     $ 0.82     $ (5.07 )   $ 0.85     $ 1.64  
    Earnings (loss) per share – diluted $ 1.66     $ 1.73     $ 0.85     $ 0.81     $ (5.07 )   $ 0.84     $ 1.62  
    Cash dividends declared on common stock $ 0.62     $ 0.60     $ 0.31     $ 0.31     $ 0.30     $ 0.30     $ 0.30  
    Common dividend payout ratio   36.90 %     34.29 %     36.47 %     37.80 %     -5.92 %     35.29 %     18.29 %
    Dividend yield (annualized)   4.87 %     6.25 %     4.86 %     5.05 %     4.37 %     4.69 %     6.25 %
    Return on average assets (annualized)   1.12 %     0.90 %     1.13 %     1.10 %     -5.38 %     0.89 %     1.68 %
    Return on average equity (annualized)   11.80 %     12.32 %     11.78 %     11.82 %     -63.70 %     11.08 %     22.93 %
    Return on average common equity (annualized)   11.90 %     12.47 %     11.88 %     11.92 %     -66.19 %     11.18 %     23.51 %
    Return on average tangible common equity (annualized)(1)   13.31 %     14.77 %     13.27 %     13.36 %     -75.36 %     12.87 %     27.51 %
    Efficiency ratio(2)   59.24 %     74.80 %     59.68 %     58.79 %     117.13 %     64.70 %     50.58 %
    Effective tax rate   18.3 %     15.0 %     18.4 %     18.2 %     28.2 %     7.4 %     15.0 %
                                                           
    1. See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
    2. The efficiency ratio is calculated by dividing noninterest expense by net revenue, i.e., the sum of net interest income (fully taxable equivalent) and noninterest income before net gains on investment securities. This is a banking industry measure not required by GAAP.

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

      Six Months Ended     2025     2024  
      June 30,     Second     First     Fourth     Third     Second  
    SELECTED AVERAGE BALANCES: 2025     2024     Quarter     Quarter     Quarter     Quarter     Quarter  
    Federal funds sold and interest-earning deposits $ 55,306     $ 146,099     $ 39,027     $ 71,767     $ 121,530     $ 49,476     $ 134,123  
    Investment securities(1)   1,078,600       1,188,901       1,071,628       1,085,649       1,159,863       1,147,052       1,194,808  
    Loans:                                        
    Commercial business   699,141       713,496       720,347       677,700       658,038       673,830       704,272  
    Commercial mortgage   2,212,786       2,044,612       2,221,576       2,203,899       2,148,427       2,092,905       2,059,382  
    Residential real estate loans   646,001       648,510       645,007       647,005       649,549       647,844       648,099  
    Residential real estate lines   74,860       75,986       75,010       74,709       76,164       75,671       75,575  
    Consumer indirect   843,763       919,718       839,294       848,282       858,854       881,133       905,056  
    Other consumer   40,850       48,043       39,485       42,230       43,333       43,789       44,552  
    Total loans   4,517,401       4,450,365       4,540,719       4,493,825       4,434,365       4,415,172       4,436,936  
    Total interest-earning assets   5,651,307       5,785,365       5,651,374       5,651,241       5,715,758       5,611,700       5,765,867  
    Goodwill and other intangible assets, net   60,663       67,651       60,610       60,717       60,824       60,936       62,893  
    Total assets   6,218,412       6,189,594       6,216,657       6,220,187       6,121,449       6,018,390       6,153,429  
    Interest-bearing liabilities:                                        
    Interest-bearing demand   738,055       745,259       730,979       745,210       757,221       691,412       741,006  
    Savings and money market   1,964,884       2,059,294       1,953,412       1,976,483       1,992,059       1,938,935       2,036,772  
    Time deposits   1,598,381       1,492,399       1,631,407       1,564,987       1,545,071       1,515,745       1,505,665  
    Short-term borrowings   90,636       159,929       86,099       95,223       56,513       129,130       140,110  
    Long-term borrowings, net   120,648       124,601       116,473       124,871       124,795       124,717       124,640  
    Total interest-bearing liabilities   4,512,604       4,581,482       4,518,370       4,506,774       4,475,659       4,399,939       4,548,193  
    Noninterest-bearing demand deposits   925,043       956,670       923,409       926,696       947,428       952,970       950,819  
    Total deposits   5,226,363       5,253,622       5,239,207       5,213,376       5,241,779       5,099,062       5,234,262  
    Total liabilities   5,630,349       5,737,327       5,619,834       5,640,981       5,604,249       5,535,112       5,703,929  
    Shareholders’ equity   588,063       452,267       596,823       579,206       517,200       483,278       449,500  
    Common equity   570,778       434,975       579,538       561,921       499,910       465,986       432,208  
    Tangible common equity(2)   510,115       367,324       518,928       501,204       439,086       405,050       369,315  
    Common shares outstanding:                                        
    Basic   20,090       15,424       20,107       20,073       16,415       15,464       15,444  
    Diluted   20,291       15,551       20,294       20,285       16,415       15,636       15,556  
    SELECTED AVERAGE YIELDS:
    (Tax equivalent basis)    		                                        
    Investment securities(3)   4.30 %     2.13 %     4.34 %     4.25 %     2.38 %     2.14 %     2.17 %
    Loans   6.23 %     6.37 %     6.26 %     6.20 %     6.28 %     6.42 %     6.40 %
    Total interest-earning assets   5.84 %     5.47 %     5.88 %     5.80 %     5.45 %     5.53 %     5.50 %
    Interest-bearing demand   1.18 %     1.15 %     1.21 %     1.15 %     1.34 %     1.05 %     1.18 %
    Savings and money market   2.71 %     3.04 %     2.67 %     2.75 %     2.94 %     3.07 %     3.01 %
    Time deposits   4.19 %     4.70 %     4.08 %     4.31 %     4.53 %     4.72 %     4.72 %
    Short-term borrowings   1.95 %     3.13 %     1.80 %     2.09 %     0.15 %     2.64 %     2.75 %
    Long-term borrowings, net   5.17 %     5.02 %     5.35 %     5.00 %     5.03 %     5.03 %     5.02 %
    Total interest-bearing liabilities   3.03 %     3.33 %     3.00 %     3.07 %     3.24 %     3.37 %     3.32 %
    Net interest rate spread   2.81 %     2.14 %     2.88 %     2.73 %     2.21 %     2.16 %     2.18 %
    Net interest margin   3.42 %     2.83 %     3.49 %     3.35 %     2.91 %     2.89 %     2.87 %
                                                           
    1. Includes investment securities at adjusted amortized cost.
    2. See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
    3. The interest on tax-exempt securities is calculated on a tax-equivalent basis assuming a Federal income tax rate of 21%.

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

      Six Months Ended     2025     2024  
      June 30,     Second     First     Fourth     Third     Second  
    ASSET QUALITY DATA: 2025     2024     Quarter     Quarter     Quarter     Quarter     Quarter  
    Allowance for Credit Losses – Loans                                        
    Beginning balance $ 48,041     $ 51,082     $ 48,964     $ 48,041     $ 44,678     $ 43,952     $ 43,075  
    Net loan charge-offs (recoveries):                                        
    Commercial business   1,960       (30 )     1,903       57       131       (3 )     7  
    Commercial mortgage–construction   –       –       –       –       –       –       –  
    Commercial mortgage–multifamily         –       –       –       –       13       –  
    Commercial mortgage–non-owner occupied   595       (2 )     596       (1 )     (5 )     (1 )     (1 )
    Commercial mortgage–owner occupied   (2 )     (2 )     (1 )     (1 )     (1 )     (2 )     (2 )
    Residential real estate loans   133       100       92       41       (4 )     (1 )     96  
    Residential real estate lines   27       –       27       –       –       –       –  
    Consumer indirect   3,091       3,817       942       2,149       2,557       1,553       844  
    Other consumer   615       360       491       124       100       106       178  
    Total net charge-offs (recoveries)   6,419       4,243       4,050       2,369       2,778       1,665       1,122  
    Provision (benefit) for credit losses – loans   5,669       (2,887 )     2,377       3,292       6,141       2,391       1,999  
    Ending balance $ 47,291     $ 43,952     $ 47,291     $ 48,964     $ 48,041     $ 44,678     $ 43,952  
                                             
    Net charge-offs (recoveries) to average loans (annualized):                                        
    Commercial business   0.57 %     -0.01 %     1.06 %     0.03 %     0.80 %     0.00 %     0.00 %
    Commercial mortgage–construction   0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %
    Commercial mortgage–multifamily   0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.01 %     0.00 %
    Commercial mortgage–non-owner occupied   0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %
    Commercial mortgage–owner occupied   0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %
    Residential real estate loans   0.04 %     0.03 %     0.06 %     0.03 %     0.00 %     0.00 %     0.06 %
    Residential real estate lines   0.07 %     0.00 %     0.14 %     0.00 %     0.00 %     0.00 %     0.00 %
    Consumer indirect   0.74 %     0.83 %     0.45 %     1.03 %     1.18 %     0.70 %     0.38 %
    Other consumer   3.04 %     1.51 %     4.99 %     1.19 %     0.91 %     0.95 %     1.62 %
    Total loans   0.29 %     0.19 %     0.36 %     0.21 %     0.25 %     0.15 %     0.10 %
                                             
    Supplemental information (1)                                        
    Non-performing loans:                                        
    Commercial business $ 3,671     $ 5,680     $ 3,671     $ 5,672     $ 5,609     $ 5,752     $ 5,680  
    Commercial mortgage–construction   19,621       4,970       19,621       19,684       20,280       20,280       4,970  
    Commercial mortgage–multifamily   –       183       –       –       –       71       183  
    Commercial mortgage–non-owner occupied   164       4,919       164       4,766       4,773       4,903       4,919  
    Commercial mortgage–owner occupied   –       380       –       349       354       366       380  
    Residential real estate loans   5,885       5,961       5,885       6,035       6,918       5,790       5,961  
    Residential real estate lines   299       183       299       316       253       232       183  
    Consumer indirect   2,571       2,897       2,571       2,917       3,157       3,291       2,897  
    Other consumer   225       36       225       279       62       57       36  
    Total non-performing loans   32,436       25,209       32,436       40,018       41,406       40,742       25,209  
    Foreclosed assets   142       63       142       196       60       109       63  
    Total non-performing assets $ 32,578     $ 25,272     $ 32,578     $ 40,214     $ 41,466     $ 40,851     $ 25,272  
                                             
    Total non-performing loans to total loans   0.72 %     0.57 %     0.72 %     0.88 %     0.92 %     0.93 %     0.57 %
    Total non-performing assets to total assets   0.53 %     0.41 %     0.53 %     0.63 %     0.68 %     0.66 %     0.41 %
    Allowance for credit losses – loans to total loans   1.04 %     0.99 %     1.04 %     1.08 %     1.07 %     1.01 %     0.99 %
    Allowance for credit losses – loans to non-performing loans   146 %     174 %     146 %     122 %     116 %     110 %     174 %
                                                           
    1. At period end.

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

      Six Months Ended     2025     2024  
      June 30,     Second     First     Fourth     Third     Second  
      2025     2024     Quarter     Quarter     Quarter     Quarter     Quarter  
    Ending tangible assets:                                        
    Total assets             $ 6,143,766     $ 6,340,492     $ 6,117,085     $ 6,156,317     $ 6,131,772  
    Less: Goodwill and other intangible assets, net               60,564       60,651       60,758       60,867       60,979  
    Tangible assets             $ 6,083,202     $ 6,279,841     $ 6,056,327     $ 6,095,450     $ 6,070,793  
                                             
    Ending tangible common equity:                                        
    Common shareholders’ equity             $ 584,383     $ 572,643     $ 551,699     $ 483,050     $ 450,375  
    Less: Goodwill and other intangible assets, net               60,564       60,651       60,758       60,867       60,979  
    Tangible common equity             $ 523,819     $ 511,992     $ 490,941     $ 422,183     $ 389,396  
                                             
    Tangible common equity to tangible assets(1)               8.61 %     8.15 %     8.11 %     6.93 %     6.41 %
                                             
    Common shares outstanding               20,128       20,110       20,077       15,474       15,472  
    Tangible common book value per share(2)             $ 26.02     $ 25.46     $ 24.45     $ 27.28     $ 25.17  
                                             
    Average tangible assets:                                        
    Average assets $ 6,218,412     $ 6,189,594     $ 6,216,657     $ 6,220,187     $ 6,121,449     $ 6,018,390     $ 6,153,429  
    Less: Average goodwill and other intangible assets, net   60,663       67,651       60,610       60,717       60,824       60,936       62,893  
    Average tangible assets $ 6,157,749     $ 6,121,943     $ 6,156,047     $ 6,159,470     $ 6,060,625     $ 5,957,454     $ 6,090,536  
                                             
    Average tangible common equity:                                        
    Average common equity $ 570,778     $ 434,975     $ 579,538     $ 561,921     $ 499,910     $ 465,986     $ 432,208  
    Less: Average goodwill and other intangible assets, net   60,663       67,651       60,610       60,717       60,824       60,936       62,893  
    Average tangible common equity $ 510,115     $ 367,324     $ 518,928     $ 501,204     $ 439,086     $ 405,050     $ 369,315  
                                             
    Net income (loss) available to common shareholders $ 33,681     $ 26,970     $ 17,168     $ 16,513     $ (83,176 )   $ 13,101     $ 25,265  
    Return on average tangible common equity(3)   13.31 %     14.77 %     13.27 %     13.36 %     -75.36 %     12.87 %     27.51 %
                                             
    1. Tangible common equity divided by tangible assets.
    2. Tangible common equity divided by common shares outstanding.
    3. Net income available to common shareholders (annualized) divided by average tangible common equity.

    The MIL Network –

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

    Source: GlobeNewswire (MIL-OSI)

    WARSAW, N.Y., July 24, 2025 (GLOBE NEWSWIRE) — Financial Institutions, Inc. (NASDAQ: FISI) (the “Company,” “we” or “us”), parent company of Five Star Bank (the “Bank”) and Courier Capital, LLC (“Courier Capital”), today reported financial and operational results for the second quarter ended June 30, 2025.

    The Company reported net income of $17.5 million in the second quarter of 2025, compared to $16.9 million in the first quarter of 2025 and $25.6 million in the second quarter of 2024. After preferred dividends, net income available to common shareholders was $17.2 million, or $0.85 per diluted share, in the second quarter of 2025, compared to $16.5 million, or $0.81 per diluted share, in the first quarter of 2025, and $25.3 million, or $1.62 per diluted share, in the second quarter of 2024. The Company recorded a provision for credit losses of $2.6 million in the current quarter, compared to $2.9 million in the linked quarter and $2.0 million in the prior year quarter.

    Second Quarter 2025 Highlights:

    • Net interest margin of 3.49% for second quarter of 2025 was up 14 and 62 basis points from the linked and year-ago quarters, respectively, while net interest income of $49.1 million for second quarter of 2025 increased $2.3 million, or 4.8%, from the first quarter of 2025 and $7.9 million, or 19.2%, from the second quarter of 2024.
    • Noninterest income was $10.6 million in the second quarter of 2025, compared to $10.4 million in the linked quarter and $24.0 million in the year-ago quarter, when results benefited from a $13.5 million pre-tax gain associated with the sale of the Company’s insurance business.
    • Total loans were $4.54 billion at June 30, 2025, reflecting a decrease of $17.3 million, or 0.4%, from March 31, 2025, driven by a decrease in our consumer indirect lending portfolio as pay-downs exceeded originations, and an increase of $74.5 million, or 1.7%, from one year prior.
    • Total deposits were $5.16 billion at June 30, 2025, down $216.9 million, or 4.0%, from March 31, 2025, driven by both seasonal public deposit outflows and the previously announced wind-down of the Company’s Banking-as-a-Service, or BaaS, offering, and relatively flat compared to one year prior.
    • Nonperforming assets to total assets were 0.53% at June 30, 2025, down from 0.63% at the linked quarter-end and up from 0.41% one year prior.

    “Second quarter 2025 financial results were highlighted by continued margin expansion, increased net interest income and durable noninterest revenues, which allowed us to deliver 4% growth in net income available to common shareholders from the linked first quarter,” said President and Chief Executive Officer Martin K. Birmingham. “Profitability continues to be a paramount focus, and we were pleased to maintain an efficiency ratio below 60% and report solid annualized return on average assets and return on average equity of 1.13% and 11.78%, respectively, for the most recent quarter.

    “Deposit balances reflect typical seasonality within our public deposit portfolio and total loans were relatively flat with the end of the first quarter, as commercial business lending growth was more than offset by a reduction in consumer indirect balances. Given our strong first quarter loan production and existing pipelines, we continue to expect low single-digit full year loan growth that aligns with our credit-disciplined philosophy.”

    Chief Financial Officer and Treasurer W. Jack Plants II added, “Our results continue to benefit from our team’s focus on prudent balance sheet stewardship through redeployment of cash flows into higher yielding assets, active investment portfolio management and our ability to effectively reprice deposits, supporting a six basis point reduction in our overall cost of funds. Expenses in the second quarter were somewhat elevated, in part reflecting timing of certain expenses and some higher costs that we expect to be nonrecurring, and we will remain intently focused on expense management through the coming quarters to support positive operating leverage in 2025.”

    Net Interest Income and Net Interest Margin

    Net interest income was $49.1 million for the second quarter of 2025, an increase of $2.3 million from the first quarter of 2025, and an increase of $7.9 million from the second quarter of 2024.

    Average interest-earning assets for the current quarter of $5.65 billion were flat with the first quarter of 2025, as a $46.9 million increase in average loans was offset by a $32.7 million decrease in the average balance of Federal Reserve interest-earning cash and a $14.0 million decrease in the average balance of investment securities. Average interest-earning assets decreased $114.5 million from the second quarter of 2024, as a $123.2 million decrease in the average balance of investment securities and a $95.1 million decrease in the average balance of Federal Reserve interest-earning cash were partially offset by a $103.8 million increase in average loans.

    Average interest-bearing liabilities for the current quarter were $4.52 billion, reflecting an increase of $11.6 million from the linked quarter and a decrease of $29.8 million from the year-ago quarter. The increase from the first quarter of 2025 was primarily due to a $66.4 million increase in average time deposits that was partially offset by a $23.1 million decrease in average savings and money market deposits, a $14.2 million decrease in average interest-bearing demand deposits, a $9.1 million decrease in average short-term borrowings, and an $8.4 million decrease in average long-term borrowings. The year-over-year decrease was due to an $83.4 million decrease in average savings and money market deposits, a $54.0 million decrease in average short-term borrowings, a $10.0 million decrease in average interest-bearing demand deposits, and an $8.2 million decrease in average long-term borrowings, partially offset by a $125.7 million increase in average time deposits. The continued outflow of BaaS-related deposits, following the Company’s September 2024 announcement that it would wind-down its BaaS platform, was the primary driver of the reduction in average savings and money market deposits from the linked and year-ago periods.

    Net interest margin was 3.49% in the current quarter as compared to 3.35% in the first quarter of 2025, and 2.87% in the second quarter of 2024. Expansion from the linked quarter was due to increases in the average yields of both investment securities and loans, as well as lower average cost of interest-bearing liabilities, reflecting repricing of non-public and reciprocal deposits. Year-over-year margin expansion was driven by an increase in the average yield on investment securities, following the previously disclosed restructuring of the available-for-sale securities portfolio in December 2024, which supported an increase in the average yield on interest-earning assets.

    Noninterest Income

    The Company reported noninterest income of $10.6 million for the second quarter of 2025, compared to $10.4 million in the first quarter of 2025 and $24.0 million in the second quarter of 2024.

    • The Company’s sale of its former insurance subsidiary generated a net gain of $13.5 million in the second quarter of 2024.
    • Investment advisory income of $2.9 million was $148 thousand higher than the first quarter of 2025 and up $106 thousand from the second quarter of 2024.
    • Income from company-owned life insurance (“COLI”) of $3.0 million was $188 thousand higher than the first quarter of 2025 and $1.6 million higher than the second quarter of 2024, due to the previously disclosed restructuring of a portion of the Company’s COLI portfolio into higher-yielding separate account policies in January 2025.
    • Income from investments in limited partnerships of $307 thousand was $108 thousand lower than the first quarter of 2025 and $496 thousand lower than the second quarter of 2024. The Company has made several investments in limited partnerships, primarily small business investment companies, and accounts for these investments under the equity method. Income from these investments fluctuates based on the maturity and performance of the underlying investments.
    • Other noninterest income of $1.3 million was $292 thousand lower than the linked quarter and $227 thousand lower than the year-ago quarter.

    Noninterest Expense

    Noninterest expense was $35.7 million in the second quarter of 2025, compared to $33.7 million in the first quarter of 2025, and $33.0 million in the second quarter of 2024.

    • Salaries and employee benefits expense of $18.1 million was $1.2 million higher than the first quarter of 2025 and $2.3 million higher than the second quarter of 2024, reflecting an increase in health insurance benefits due to higher medical claims than in the linked quarter, while the increase from the prior year quarter was primarily due to annual merit increases.
    • Occupancy and equipment expense of $4.0 million reflects increases of $392 thousand and $534 thousand from the linked and year-ago quarters, respectively. The linked quarter increase was due in part to timing given a change in facilities maintenance service vendors, as well as costs associated with an ongoing ATM conversion, while the year-over-year variance was due in part to the ATM conversion and upgrade project.
    • Professional services expenses of $1.5 million were $240 thousand lower than the first quarter of 2025 and $343 thousand lower than the second quarter of 2024. The linked quarter variance was primarily due to the timing of audit related expenses, while the year-over-year variance was primarily attributable to legal expenses incurred in the second quarter of 2024 related to the Company’s previously disclosed deposit-related fraud event.
    • Computer and data processing expense of $5.9 million was $392 thousand higher than the first quarter of 2025 and $537 thousand higher than the second quarter of 2024. Both the linked quarter and year-over-year increases were driven by the timing of expenses for in-process technology enhancement and upgrade initiatives.
    • The Company recorded deposit-related charged-off items of $233 thousand for the current quarter, compared to charged-off recoveries of $294 thousand in the first quarter of 2025 and charged-off items of $398 thousand in the second quarter of 2024, with the linked quarter variance primarily driven by insurance proceeds received in the first quarter of 2025 related to a past commercial deposit charged-off item.
    • Other expense of $3.6 million was down $179 thousand from the linked quarter and down $381 thousand from the year-ago quarter, with the year-over-year variance primarily due to higher interest rate swap collateral charges in the second quarter of 2024.

    Income Taxes

    Income tax expense was $4.0 million for the second quarter of 2025, compared to $3.7 million in the first quarter of 2025 and $4.5 million in the second quarter of 2024. The Company also recognized federal and state tax benefits related to tax credit investments placed in service and/or amortized during the second quarter of 2025, first quarter of 2025, and second quarter of 2024, resulting in income tax expense reductions of $1.1 million, $1.1 million, and $1.3 million, respectively.

    The effective tax rate was 18.4% for the second quarter of 2025, 18.2% for the first quarter of 2025, and 15.0% for the second quarter of 2024. The effective tax rate fluctuates on a quarterly basis primarily due to the level of pre-tax earnings and may differ from statutory rates because of interest income from tax-exempt securities, earnings on COLI, the tax impact of the COLI repositioning, and the impact of tax credit investments.

    Balance Sheet and Capital Management

    Total assets were $6.14 billion at June 30, 2025, down $196.7 million from March 31, 2025, and flat with June 30, 2024.

    Investment securities were $1.01 billion at June 30, 2025, down $31.8 million from March 31, 2025, and flat with June 30, 2024.

    Total loans were $4.54 billion at June 30, 2025, a decrease of $17.3 million, or 0.4%, from March 31, 2025, and an increase of $74.5 million, or 1.7%, from June 30, 2024.

    • Commercial business loans totaled $726.2 million, up $17.1 million, or 2.4%, from March 31, 2025, and up $12.3 million, or 1.7%, from June 30, 2024.
    • Commercial mortgage loans totaled $2.22 billion, a decline of $13.1 million, or 0.6%, from March 31, 2025, and an increase of $129.3 million, or 6.2%, from June 30, 2024.
    • Residential real estate loans totaled $647.2 million, up $3.2 million, or 0.5%, from March 31, 2025, and down $470 thousand, or 0.1%, from June 30, 2024.
    • Consumer indirect loans totaled $833.5 million, down $19.7 million, or 2.3%, from March 31, 2025, and down $61.1 million, or 6.8%, from June 30, 2024.

    Total deposits were $5.16 billion at June 30, 2025, down $216.9 million, or 4.0%, from March 31, 2025, and up $22.7 million, or 0.4%, from June 30, 2024. The decrease from March 31, 2025 was primarily due to seasonally lower public deposit balances in addition to the outflow of BaaS-related deposits. The modest increase from June 30, 2024 reflected a higher level of brokered deposits, which were utilized to offset the anticipated reduction in BaaS-related deposits, as well as lower reciprocal deposit balances. The Company had approximately $7 million in BaaS-related deposits at June 30, 2025, compared to approximately $55 million at March 31, 2025 and approximately $108 million at June 30, 2024. Public deposit balances represented 21% of total deposits at June 30, 2025, 24% at March 31, 2025, and 20% at June 30, 2024.

    Short-term borrowings were $101.0 million at June 30, 2025, compared to $55.0 million at March 31, 2025, and $202.0 million at June 30, 2024. Short-term borrowings and brokered deposits have historically been utilized to manage the seasonality of public deposits.

    Shareholders’ equity was $601.7 million at June 30, 2025, compared to $589.9 million at March 31, 2025, and $467.7 million at June 30, 2024. The linked quarter period-end increase was due to net income, net of dividends, retained, while the year-over-year period end increase was primarily driven by additional paid-in-capital resulting from the common stock capital raise executed in the fourth quarter of 2024 and a decrease in accumulated other comprehensive loss between period ends following the investment securities restructuring in the fourth quarter of 2024.

    Common book value per share was $29.03 at June 30, 2025, an increase of $0.55, or 1.9%, from $28.48 at March 31, 2025, and a decrease of $0.08, or 0.3%, from $29.11 at June 30, 2024. Tangible common book value per share(1) was $26.02 at June 30, 2025, an increase of $0.56, or 2.2%, from $25.46 at March 31, 2025, and an increase of $0.85, or 3.4%, from $25.17 at June 30, 2024. The common equity to assets ratio was 9.51% at June 30, 2025, compared to 9.03% at March 31, 2025, and 7.34% at June 30, 2024. Tangible common equity to tangible assets(1), or the TCE ratio, was 8.61%, 8.15% and 6.41% at June 30, 2025, March 31, 2025, and June 30, 2024, respectively. The year-over-year increases in both ratios were attributable to the additional capital raised in the fourth quarter of 2024 and the decrease in accumulated other comprehensive loss as a result of the investment securities restructuring in the fourth quarter of 2024.

    During the second quarter of 2025, the Company declared a common stock dividend of $0.31 per common share, consistent with the linked quarter and reflecting an increase of $0.01, or 3.3%, over the year-ago quarter. The dividend returned more than 36% of second quarter net income to common shareholders.

    The Company’s regulatory capital ratios at June 30, 2025 continued to exceed all regulatory capital requirements to be considered well capitalized.

    • Leverage Ratio was 9.45% compared to 9.24% and 8.61% at March 31, 2025, and June 30, 2024, respectively.
    • Common Equity Tier 1 Capital Ratio was 10.84% compared to 10.38% and 10.03% at March 31, 2025, and June 30, 2024, respectively.
    • Tier 1 Capital Ratio was 11.17% compared to 10.71% and 10.36% at March 31, 2025, and June 30, 2024, respectively.
    • Total Risk-Based Capital Ratio was 13.27% compared to 13.09% and 12.65% at March 31, 2025, and June 30, 2024, respectively.

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

    Credit Quality

    Non-performing loans were $32.4 million, or 0.72% of total loans, at June 30, 2025, as compared to $40.0 million, or 0.88% of total loans, at March 31, 2025, and $25.2 million, or 0.57% of total loans, at June 30, 2024. The decrease from March 31, 2025 reflects a reduction of approximately $3.7 million in non-performing loans associated with the foreclosure of a participated loan secured by real estate, as well as a $1.9 million partial charge-off of a credit facility for which a specific reserve was in place. Both the aforementioned foreclosed participated loan and the partially charged-off credit facility relate to a previously disclosed commercial business relationship that was placed on nonaccrual status in the fourth quarter of 2023. The increase in non-performing loans from June 30, 2024 was primarily driven by one commercial loan relationship that was placed on nonaccrual status during the third quarter of 2024. Net charge-offs were $4.1 million, representing 0.36% of average loans on an annualized basis, for the current quarter, as compared to $2.4 million, or an annualized 0.21% of average loans, in the first quarter of 2025 and $1.1 million, or an annualized 0.10%, in the second quarter of 2024.

    At June 30, 2025, the allowance for credit losses on loans to total loans ratio was 1.04%, compared to 1.08% at March 31, 2025 and 0.99% at June 30, 2024.

    Provision for credit losses was $2.6 million in the current quarter, compared to $2.9 million in the linked quarter and $2.0 million in the prior year quarter. Provision for credit losses on loans was $2.4 million in the current quarter, compared to $3.3 million in the first quarter of 2025, and $2.0 million in the second quarter of 2024. The allowance for unfunded commitments, also included in provision for credit losses as required by the current expected credit loss standard (“CECL”), totaled $179 thousand in the second quarter of 2025, $364 thousand in the first quarter of 2025, and $43 thousand in the second quarter of 2024. The provision for credit losses for the second quarter of 2025 was driven by a combination of factors, including improvement in the forecasted loss rate for pooled loans and a reduction in specific reserves, partly offset by higher net charge-offs.

    The Company has remained strategically focused on the importance of credit discipline, allocating resources to credit and risk management functions as the loan portfolio has grown. The ratio of allowance for credit losses on loans to non-performing loans was 146% at June 30, 2025, 122% at March 31, 2025, and 174% at June 30, 2024, with the improvement from the end of the linked quarter reflective of the decrease in nonperforming loans reported at June 30, 2025.

    Subsequent Events

    The Company is required, under generally accepted accounting principles (“GAAP”), to evaluate subsequent events through the filing of its consolidated financial statements for the quarter ended June 30, 2025, on Form 10-Q. As a result, the Company will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of June 30, 2025, and will adjust amounts preliminarily reported, if necessary.

    Conference Call

    The Company will host an earnings conference call and audio webcast on July 25, 2025 at 8:30 a.m. Eastern Time. The call will be hosted by Martin K. Birmingham, President and Chief Executive Officer, and W. Jack Plants II, Chief Financial Officer and Treasurer. The live webcast will be available in listen-only mode on the Company’s website at www.FISI-investors.com. Within the United States, listeners may also access the call by dialing 1-833-470-1428 and providing the access code 652423. The webcast replay will be available on the Company’s website for at least 30 days.

    About Financial Institutions, Inc.

    Financial Institutions, Inc. (NASDAQ: FISI) is a financial holding company with approximately $6.1 billion in assets offering banking and wealth management products and services. Its Five Star Bank subsidiary provides consumer and commercial banking and lending services to individuals, municipalities and businesses through banking locations spanning Western and Central New York and a commercial loan production office serving the Mid-Atlantic region. Courier Capital, LLC offers customized investment management, consulting and retirement plan services to individuals, businesses, institutions, foundations and retirement plans. Learn more at Five-StarBank.com and FISI-Investors.com.

    Non-GAAP Financial Information

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

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

    Safe Harbor Statement

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

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

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

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

      2025     2024  
    SELECTED BALANCE SHEET DATA: June 30,     March 31,     December 31,     September 30,     June 30,  
    Cash and cash equivalents $ 93,034     $ 167,352     $ 87,321     $ 249,569     $ 146,347  
    Investment securities:                            
    Available for sale   916,149       926,992       911,105       886,816       871,635  
    Held-to-maturity, net   92,121       113,105       116,001       121,279       128,271  
    Total investment securities   1,008,270       1,040,097       1,027,106       1,008,095       999,906  
    Loans held for sale   2,356       387       2,280       2,495       2,099  
    Loans:                            
    Commercial business   726,218       709,101       665,321       654,519       713,947  
    Commercial mortgage–construction   536,552       566,359       582,619       533,506       518,013  
    Commercial mortgage–multifamily   496,223       475,867       470,954       467,527       463,171  
    Commercial mortgage–non-owner occupied   873,207       899,679       857,987       814,392       814,953  
    Commercial mortgage–owner occupied   309,171       286,391       288,036       290,216       289,733  
    Residential real estate loans   647,205       643,983       650,206       648,241       647,675  
    Residential real estate lines   75,675       74,769       75,552       76,203       75,510  
    Consumer indirect   833,452       853,176       845,772       874,651       894,596  
    Other consumer   38,299       43,953       42,757       43,734       43,870  
    Total loans   4,536,002       4,553,278       4,479,204       4,402,989       4,461,468  
    Allowance for credit losses – loans   47,291       48,964       48,041       44,678       43,952  
    Total loans, net   4,488,711       4,504,314       4,431,163       4,358,311       4,417,516  
    Total interest-earning assets   5,614,008       5,733,743       5,602,570       5,666,972       5,709,148  
    Goodwill and other intangible assets, net   60,564       60,651       60,758       60,867       60,979  
    Total assets   6,143,766       6,340,492       6,117,085       6,156,317       6,131,772  
    Deposits:                            
    Noninterest-bearing demand   940,341       945,182       950,351       978,660       939,346  
    Interest-bearing demand   704,871       773,475       705,195       793,996       711,580  
    Savings and money market   1,898,302       2,033,323       1,904,013       2,027,181       2,007,256  
    Time deposits   1,612,500       1,620,930       1,545,172       1,506,764       1,475,139  
    Total deposits   5,156,014       5,372,910       5,104,731       5,306,601       5,133,321  
    Short-term borrowings   101,000       55,000       99,000       55,000       202,000  
    Long-term borrowings, net   114,960       124,917       124,842       124,765       124,687  
    Total interest-bearing liabilities   4,431,633       4,607,645       4,405,912       4,507,706       4,520,662  
    Shareholders’ equity   601,668       589,928       568,984       500,342       467,667  
    Common shareholders’ equity   584,383       572,643       551,699       483,050       450,375  
    Tangible common equity(1)   523,838       511,992       490,941       422,183       389,396  
    Accumulated other comprehensive loss $ (42,214 )   $ (41,995 )   $ (52,604 )   $ (102,029 )   $ (125,774 )
                                 
    Common shares outstanding   20,128       20,110       20,077       15,474       15,472  
    Treasury shares   572       590       623       625       627  
    CAPITAL RATIOS AND PER SHARE DATA:                            
    Leverage ratio   9.45 %     9.24 %     9.15 %     8.98 %     8.61 %
    Common equity Tier 1 capital ratio   10.84 %     10.38 %     10.54 %     10.28 %     10.03 %
    Tier 1 capital ratio   11.17 %     10.71 %     10.87 %     10.62 %     10.36 %
    Total risk-based capital ratio   13.27 %     13.09 %     13.25 %     12.95 %     12.65 %
    Common equity to assets   9.51 %     9.03 %     9.02 %     7.85 %     7.34 %
    Tangible common equity to tangible assets(1)   8.61 %     8.15 %     8.11 %     6.93 %     6.41 %
                                 
    Common book value per share $ 29.03     $ 28.48     $ 27.48     $ 31.22     $ 29.11  
    Tangible common book value per share(1) $ 26.02     $ 25.46     $ 24.45     $ 27.28     $ 25.17  
                                           
    1. See Appendix A — Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.

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

      Six Months Ended     2025     2024  
      June 30,     Second     First     Fourth     Third     Second  
    SELECTED STATEMENT OF OPERATIONS DATA: 2025     2024     Quarter     Quarter     Quarter     Quarter     Quarter  
    Interest income $ 163,918     $ 157,201     $ 82,867     $ 81,051     $ 78,119     $ 77,911     $ 78,788  
    Interest expense   67,932       75,926       33,745       34,187       36,486       37,230       37,595  
    Net interest income   95,986       81,275       49,122       46,864       41,633       40,681       41,193  
    Provision (benefit) for credit losses   5,490       (3,415 )     2,562       2,928       6,461       3,104       2,041  
    Net interest income after provision (benefit) for credit losses   90,496       84,690       46,560       43,936       35,172       37,577       39,152  
    Noninterest income:                                        
    Service charges on deposits   2,141       2,056       1,089       1,052       1,074       1,103       979  
    Insurance income   6       2,138       3       3       3       3       4  
    Card interchange income   3,777       3,910       1,937       1,840       2,045       1,900       2,008  
    Investment advisory   5,622       5,361       2,885       2,737       2,555       2,797       2,779  
    Company owned life insurance   5,742       2,658       2,965       2,777       1,425       1,404       1,360  
    Investments in limited partnerships   722       1,145       307       415       837       400       803  
    Loan servicing   303       333       180       123       295       88       158  
    Income (loss) from derivative instruments, net   589       551       339       250       (37 )     212       377  
    Net gain on sale of loans held for sale   257       212       140       117       186       220       124  
    Net loss on investment securities   3       –       3       –       (100,055 )     –       –  
    Net gain (loss) on the sale of other assets   –       13,495       –       –       (19 )     138       13,508  
    Net (loss) gain on tax credit investments   (1,026 )     31       (512 )     (514 )     (636 )     (170 )     406  
    Other   2,854       3,025       1,281       1,573       1,291       1,345       1,508  
    Total noninterest income (loss)   20,990       34,915       10,617       10,373       (91,036 )     9,440       24,014  
    Noninterest expense:                                        
    Salaries and employee benefits   34,968       33,088       18,070       16,898       17,159       15,879       15,748  
    Occupancy and equipment   7,572       7,200       3,982       3,590       3,791       3,370       3,448  
    Professional services   3,142       4,166       1,451       1,691       1,571       1,965       1,794  
    Computer and data processing   11,366       10,728       5,879       5,487       6,608       5,353       5,342  
    Supplies and postage   1,081       912       503       578       504       519       437  
    FDIC assessments   2,859       2,641       1,392       1,467       1,551       1,092       1,346  
    Advertising and promotions   837       737       495       342       465       371       440  
    Amortization of intangibles   212       331       105       107       109       112       114  
    Provision for litigation settlement   –       –       –       –       23,022       –       –  
    Deposit-related charged-off items (recoveries) expense   (61 )     19,577       233       (294 )     354       410       398  
    Restructuring charges   68       –       –       68       35       –       –  
    Other   7,323       7,653       3,572       3,751       4,235       3,398       3,953  
    Total noninterest expense   69,367       87,033       35,682       33,685       59,404       32,469       33,020  
    Income (loss) before income taxes   42,119       32,572       21,495       20,624       (115,268 )     14,548       30,146  
    Income tax expense (benefit)   7,709       4,873       3,963       3,746       (32,457 )     1,082       4,517  
    Net income (loss)   34,410       27,699       17,532       16,878       (82,811 )     13,466       25,629  
    Preferred stock dividends   729       729       364       365       365       365       364  
    Net income (loss) available to common shareholders $ 33,681     $ 26,970     $ 17,168     $ 16,513     $ (83,176 )   $ 13,101     $ 25,265  
    FINANCIAL RATIOS:                                        
    Earnings (loss) per share – basic $ 1.68     $ 1.75     $ 0.85     $ 0.82     $ (5.07 )   $ 0.85     $ 1.64  
    Earnings (loss) per share – diluted $ 1.66     $ 1.73     $ 0.85     $ 0.81     $ (5.07 )   $ 0.84     $ 1.62  
    Cash dividends declared on common stock $ 0.62     $ 0.60     $ 0.31     $ 0.31     $ 0.30     $ 0.30     $ 0.30  
    Common dividend payout ratio   36.90 %     34.29 %     36.47 %     37.80 %     -5.92 %     35.29 %     18.29 %
    Dividend yield (annualized)   4.87 %     6.25 %     4.86 %     5.05 %     4.37 %     4.69 %     6.25 %
    Return on average assets (annualized)   1.12 %     0.90 %     1.13 %     1.10 %     -5.38 %     0.89 %     1.68 %
    Return on average equity (annualized)   11.80 %     12.32 %     11.78 %     11.82 %     -63.70 %     11.08 %     22.93 %
    Return on average common equity (annualized)   11.90 %     12.47 %     11.88 %     11.92 %     -66.19 %     11.18 %     23.51 %
    Return on average tangible common equity (annualized)(1)   13.31 %     14.77 %     13.27 %     13.36 %     -75.36 %     12.87 %     27.51 %
    Efficiency ratio(2)   59.24 %     74.80 %     59.68 %     58.79 %     117.13 %     64.70 %     50.58 %
    Effective tax rate   18.3 %     15.0 %     18.4 %     18.2 %     28.2 %     7.4 %     15.0 %
                                                           
    1. See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
    2. The efficiency ratio is calculated by dividing noninterest expense by net revenue, i.e., the sum of net interest income (fully taxable equivalent) and noninterest income before net gains on investment securities. This is a banking industry measure not required by GAAP.

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

      Six Months Ended     2025     2024  
      June 30,     Second     First     Fourth     Third     Second  
    SELECTED AVERAGE BALANCES: 2025     2024     Quarter     Quarter     Quarter     Quarter     Quarter  
    Federal funds sold and interest-earning deposits $ 55,306     $ 146,099     $ 39,027     $ 71,767     $ 121,530     $ 49,476     $ 134,123  
    Investment securities(1)   1,078,600       1,188,901       1,071,628       1,085,649       1,159,863       1,147,052       1,194,808  
    Loans:                                        
    Commercial business   699,141       713,496       720,347       677,700       658,038       673,830       704,272  
    Commercial mortgage   2,212,786       2,044,612       2,221,576       2,203,899       2,148,427       2,092,905       2,059,382  
    Residential real estate loans   646,001       648,510       645,007       647,005       649,549       647,844       648,099  
    Residential real estate lines   74,860       75,986       75,010       74,709       76,164       75,671       75,575  
    Consumer indirect   843,763       919,718       839,294       848,282       858,854       881,133       905,056  
    Other consumer   40,850       48,043       39,485       42,230       43,333       43,789       44,552  
    Total loans   4,517,401       4,450,365       4,540,719       4,493,825       4,434,365       4,415,172       4,436,936  
    Total interest-earning assets   5,651,307       5,785,365       5,651,374       5,651,241       5,715,758       5,611,700       5,765,867  
    Goodwill and other intangible assets, net   60,663       67,651       60,610       60,717       60,824       60,936       62,893  
    Total assets   6,218,412       6,189,594       6,216,657       6,220,187       6,121,449       6,018,390       6,153,429  
    Interest-bearing liabilities:                                        
    Interest-bearing demand   738,055       745,259       730,979       745,210       757,221       691,412       741,006  
    Savings and money market   1,964,884       2,059,294       1,953,412       1,976,483       1,992,059       1,938,935       2,036,772  
    Time deposits   1,598,381       1,492,399       1,631,407       1,564,987       1,545,071       1,515,745       1,505,665  
    Short-term borrowings   90,636       159,929       86,099       95,223       56,513       129,130       140,110  
    Long-term borrowings, net   120,648       124,601       116,473       124,871       124,795       124,717       124,640  
    Total interest-bearing liabilities   4,512,604       4,581,482       4,518,370       4,506,774       4,475,659       4,399,939       4,548,193  
    Noninterest-bearing demand deposits   925,043       956,670       923,409       926,696       947,428       952,970       950,819  
    Total deposits   5,226,363       5,253,622       5,239,207       5,213,376       5,241,779       5,099,062       5,234,262  
    Total liabilities   5,630,349       5,737,327       5,619,834       5,640,981       5,604,249       5,535,112       5,703,929  
    Shareholders’ equity   588,063       452,267       596,823       579,206       517,200       483,278       449,500  
    Common equity   570,778       434,975       579,538       561,921       499,910       465,986       432,208  
    Tangible common equity(2)   510,115       367,324       518,928       501,204       439,086       405,050       369,315  
    Common shares outstanding:                                        
    Basic   20,090       15,424       20,107       20,073       16,415       15,464       15,444  
    Diluted   20,291       15,551       20,294       20,285       16,415       15,636       15,556  
    SELECTED AVERAGE YIELDS:
    (Tax equivalent basis)    		                                        
    Investment securities(3)   4.30 %     2.13 %     4.34 %     4.25 %     2.38 %     2.14 %     2.17 %
    Loans   6.23 %     6.37 %     6.26 %     6.20 %     6.28 %     6.42 %     6.40 %
    Total interest-earning assets   5.84 %     5.47 %     5.88 %     5.80 %     5.45 %     5.53 %     5.50 %
    Interest-bearing demand   1.18 %     1.15 %     1.21 %     1.15 %     1.34 %     1.05 %     1.18 %
    Savings and money market   2.71 %     3.04 %     2.67 %     2.75 %     2.94 %     3.07 %     3.01 %
    Time deposits   4.19 %     4.70 %     4.08 %     4.31 %     4.53 %     4.72 %     4.72 %
    Short-term borrowings   1.95 %     3.13 %     1.80 %     2.09 %     0.15 %     2.64 %     2.75 %
    Long-term borrowings, net   5.17 %     5.02 %     5.35 %     5.00 %     5.03 %     5.03 %     5.02 %
    Total interest-bearing liabilities   3.03 %     3.33 %     3.00 %     3.07 %     3.24 %     3.37 %     3.32 %
    Net interest rate spread   2.81 %     2.14 %     2.88 %     2.73 %     2.21 %     2.16 %     2.18 %
    Net interest margin   3.42 %     2.83 %     3.49 %     3.35 %     2.91 %     2.89 %     2.87 %
                                                           
    1. Includes investment securities at adjusted amortized cost.
    2. See Appendix A – Reconciliation to Non-GAAP Financial Measures for the computation of this non-GAAP financial measure.
    3. The interest on tax-exempt securities is calculated on a tax-equivalent basis assuming a Federal income tax rate of 21%.

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

      Six Months Ended     2025     2024  
      June 30,     Second     First     Fourth     Third     Second  
    ASSET QUALITY DATA: 2025     2024     Quarter     Quarter     Quarter     Quarter     Quarter  
    Allowance for Credit Losses – Loans                                        
    Beginning balance $ 48,041     $ 51,082     $ 48,964     $ 48,041     $ 44,678     $ 43,952     $ 43,075  
    Net loan charge-offs (recoveries):                                        
    Commercial business   1,960       (30 )     1,903       57       131       (3 )     7  
    Commercial mortgage–construction   –       –       –       –       –       –       –  
    Commercial mortgage–multifamily         –       –       –       –       13       –  
    Commercial mortgage–non-owner occupied   595       (2 )     596       (1 )     (5 )     (1 )     (1 )
    Commercial mortgage–owner occupied   (2 )     (2 )     (1 )     (1 )     (1 )     (2 )     (2 )
    Residential real estate loans   133       100       92       41       (4 )     (1 )     96  
    Residential real estate lines   27       –       27       –       –       –       –  
    Consumer indirect   3,091       3,817       942       2,149       2,557       1,553       844  
    Other consumer   615       360       491       124       100       106       178  
    Total net charge-offs (recoveries)   6,419       4,243       4,050       2,369       2,778       1,665       1,122  
    Provision (benefit) for credit losses – loans   5,669       (2,887 )     2,377       3,292       6,141       2,391       1,999  
    Ending balance $ 47,291     $ 43,952     $ 47,291     $ 48,964     $ 48,041     $ 44,678     $ 43,952  
                                             
    Net charge-offs (recoveries) to average loans (annualized):                                        
    Commercial business   0.57 %     -0.01 %     1.06 %     0.03 %     0.80 %     0.00 %     0.00 %
    Commercial mortgage–construction   0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %
    Commercial mortgage–multifamily   0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.01 %     0.00 %
    Commercial mortgage–non-owner occupied   0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %
    Commercial mortgage–owner occupied   0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %     0.00 %
    Residential real estate loans   0.04 %     0.03 %     0.06 %     0.03 %     0.00 %     0.00 %     0.06 %
    Residential real estate lines   0.07 %     0.00 %     0.14 %     0.00 %     0.00 %     0.00 %     0.00 %
    Consumer indirect   0.74 %     0.83 %     0.45 %     1.03 %     1.18 %     0.70 %     0.38 %
    Other consumer   3.04 %     1.51 %     4.99 %     1.19 %     0.91 %     0.95 %     1.62 %
    Total loans   0.29 %     0.19 %     0.36 %     0.21 %     0.25 %     0.15 %     0.10 %
                                             
    Supplemental information (1)                                        
    Non-performing loans:                                        
    Commercial business $ 3,671     $ 5,680     $ 3,671     $ 5,672     $ 5,609     $ 5,752     $ 5,680  
    Commercial mortgage–construction   19,621       4,970       19,621       19,684       20,280       20,280       4,970  
    Commercial mortgage–multifamily   –       183       –       –       –       71       183  
    Commercial mortgage–non-owner occupied   164       4,919       164       4,766       4,773       4,903       4,919  
    Commercial mortgage–owner occupied   –       380       –       349       354       366       380  
    Residential real estate loans   5,885       5,961       5,885       6,035       6,918       5,790       5,961  
    Residential real estate lines   299       183       299       316       253       232       183  
    Consumer indirect   2,571       2,897       2,571       2,917       3,157       3,291       2,897  
    Other consumer   225       36       225       279       62       57       36  
    Total non-performing loans   32,436       25,209       32,436       40,018       41,406       40,742       25,209  
    Foreclosed assets   142       63       142       196       60       109       63  
    Total non-performing assets $ 32,578     $ 25,272     $ 32,578     $ 40,214     $ 41,466     $ 40,851     $ 25,272  
                                             
    Total non-performing loans to total loans   0.72 %     0.57 %     0.72 %     0.88 %     0.92 %     0.93 %     0.57 %
    Total non-performing assets to total assets   0.53 %     0.41 %     0.53 %     0.63 %     0.68 %     0.66 %     0.41 %
    Allowance for credit losses – loans to total loans   1.04 %     0.99 %     1.04 %     1.08 %     1.07 %     1.01 %     0.99 %
    Allowance for credit losses – loans to non-performing loans   146 %     174 %     146 %     122 %     116 %     110 %     174 %
                                                           
    1. At period end.

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

      Six Months Ended     2025     2024  
      June 30,     Second     First     Fourth     Third     Second  
      2025     2024     Quarter     Quarter     Quarter     Quarter     Quarter  
    Ending tangible assets:                                        
    Total assets             $ 6,143,766     $ 6,340,492     $ 6,117,085     $ 6,156,317     $ 6,131,772  
    Less: Goodwill and other intangible assets, net               60,564       60,651       60,758       60,867       60,979  
    Tangible assets             $ 6,083,202     $ 6,279,841     $ 6,056,327     $ 6,095,450     $ 6,070,793  
                                             
    Ending tangible common equity:                                        
    Common shareholders’ equity             $ 584,383     $ 572,643     $ 551,699     $ 483,050     $ 450,375  
    Less: Goodwill and other intangible assets, net               60,564       60,651       60,758       60,867       60,979  
    Tangible common equity             $ 523,819     $ 511,992     $ 490,941     $ 422,183     $ 389,396  
                                             
    Tangible common equity to tangible assets(1)               8.61 %     8.15 %     8.11 %     6.93 %     6.41 %
                                             
    Common shares outstanding               20,128       20,110       20,077       15,474       15,472  
    Tangible common book value per share(2)             $ 26.02     $ 25.46     $ 24.45     $ 27.28     $ 25.17  
                                             
    Average tangible assets:                                        
    Average assets $ 6,218,412     $ 6,189,594     $ 6,216,657     $ 6,220,187     $ 6,121,449     $ 6,018,390     $ 6,153,429  
    Less: Average goodwill and other intangible assets, net   60,663       67,651       60,610       60,717       60,824       60,936       62,893  
    Average tangible assets $ 6,157,749     $ 6,121,943     $ 6,156,047     $ 6,159,470     $ 6,060,625     $ 5,957,454     $ 6,090,536  
                                             
    Average tangible common equity:                                        
    Average common equity $ 570,778     $ 434,975     $ 579,538     $ 561,921     $ 499,910     $ 465,986     $ 432,208  
    Less: Average goodwill and other intangible assets, net   60,663       67,651       60,610       60,717       60,824       60,936       62,893  
    Average tangible common equity $ 510,115     $ 367,324     $ 518,928     $ 501,204     $ 439,086     $ 405,050     $ 369,315  
                                             
    Net income (loss) available to common shareholders $ 33,681     $ 26,970     $ 17,168     $ 16,513     $ (83,176 )   $ 13,101     $ 25,265  
    Return on average tangible common equity(3)   13.31 %     14.77 %     13.27 %     13.36 %     -75.36 %     12.87 %     27.51 %
                                             
    1. Tangible common equity divided by tangible assets.
    2. Tangible common equity divided by common shares outstanding.
    3. Net income available to common shareholders (annualized) divided by average tangible common equity.

    The MIL Network –

  • MIL-OSI Europe: Written question – REACH review presented at CARACAL – E-002910/2025

    Source: European Parliament

    Question for written answer  E-002910/2025
    to the Commission
    Rule 144
    Pietro Fiocchi (ECR)

    Commission President von der Leyen has clearly indicated that the focus of the new Commission is simplification and competitiveness. Nevertheless, it is striking that, despite this commitment, several legislative files are still being dealt with in a ‘business as usual’ way.

    The review of the Regulation on the registration, evaluation, authorisation and restriction of chemicals (REACH), presented at the meeting of Competent Authorities for REACH and Classification, Labelling and Packaging (CLP) (CARACAL) on 3 April 2025, does not seem to include any proposed simplifications that reduce the administrative burden for industry. The Commission seems intent on persisting with the same ideas and approach, even though they have proven ineffective. The comments received from EU industry stakeholders are highly critical, saying that it seems as though the Commission services live in a different world from their political leadership and president. Furthermore, they consider it absurd to call the proposals ‘simplification’ because it is as if the Competitiveness Compass, Clean Industrial Deal or economic crisis simply do not exist.

    • 1.How are the relevant services ensuring that the new Commission’s political orientation is being implemented in their directorates-general to align legislation with the Competitiveness Compass?
    • 2.Has the Commission assessed the economic impact of this ‘internal miscommunication’ that risks driving industry away from the EU and towards other more appealing markets?

    Submitted: 16.7.2025

    Last updated: 24 July 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Written question – Long-term financing and development of Rail Baltica in light of EU and NATO strategic objectives – E-002997/2025

    Source: European Parliament

    Question for written answer  E-002997/2025
    to the Commission
    Rule 144
    Michał Dworczyk (ECR)

    Russia’s war against Ukraine has confirmed the crucial importance of military mobility for maintaining NATO and EU security. Therefore, Rail Baltica – as a pan-European project of strategic geopolitical and economic importance – not only strengthens the single market, but is also crucial to the security of the eastern flank.

    Given the continued delays in the implementation of the project, ongoing work on the new Multiannual Financial Framework, and the rapid exhaustion of funds under the Action Plan on Military Mobility 2.0, stable and long-term financing must be secured for the next stages of Rail Baltica, including from other European funds.

    I would therefore like to ask:

    • 1.How does the Commission plan to ensure stable and adequate co-financing for this project under the next EU Multiannual Financial Framework, given that the current annual calls for proposals do not provide the predictability necessary for the long-term planning of infrastructure investments?
    • 2.Given that the Commission has recognised Rail Baltica as a project of strategic importance for the EU’s security and military mobility, are additional support instruments – including dedicated financing mechanisms – planned to enable faster implementation of the project under future programmes on defence, military mobility and critical infrastructure?
    • 3.Is the Commission considering extending the route with a section from Warsaw to Ukraine and to allied countries in the Black Sea region[1]?

    Submitted: 18.7.2025

    • [1] This matter is raised in point 1 of Commission Implementing Decision (EU) 2025/1332 of 9 July 2025, https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L_202501332.
    Last updated: 24 July 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Written question – Concerns over Portugal’s waste fee increases and compliance with Article 8a of the Waste Framework Directive – E-002906/2025

    Source: European Parliament

    Question for written answer  E-002906/2025
    to the Commission
    Rule 144
    Ana Vasconcelos (Renew), João Cotrim De Figueiredo (Renew)

    The Portuguese Government has decided to almost double the fees that companies must pay to municipalities – from EUR 125 million in 2024 to EUR 235 million in 2025 – without proper consultation, clear performance goals or the infrastructure needed to improve recycling outcomes. This comes at a time when Portugal is already off track to meet its 2025 EU recycling targets.

    This decision risks undermining the principles of Article 8a of the Waste Framework Directive (WFD)[1], which require extended producer responsibility (EPR) schemes to ensure fair cost allocation, efficient use of funds and clearly defined roles for public and private actors. Instead of reforming a dysfunctional system, the government has simply increased the financial burden on companies.

    The Commission flagged Portugal’s underperformance in its 2023 early warning report and has now opened an infringement procedure (INFR(2024)2145).

    • 1.What steps will it take to ensure Portugal complies with Article 8a of the WFD?
    • 2.Does the Commission consider Portugal’s brutal fee increases to be compatible with EU law and can Portugal collect a waste management fee without clearly linking it to actions supporting EU recycling targets?
    • 3.What action will it take if Portugal continues to miss its recycling targets and fails to address structural shortcomings?

    Submitted: 16.7.2025

    • [1] Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and repealing certain Directives, ELI: http://data.europa.eu/eli/dir/2008/98/2024-02-18.
    Last updated: 24 July 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Written question – Retaliatory demolitions of properties in Albania – E-002943/2025

    Source: European Parliament

    Question for written answer  E-002943/2025
    to the Commission
    Rule 144
    Fredis Beleris (PPE)

    Recently, the Albanian authorities seem to have engaged in demolitions of private tourist properties, with the most recent in the Thethi region, where some of the properties had been licensed by the authorities and taxes paid to the Municipality and the State for several years. The owners, both Albanians and European citizens, point out that these buildings are on their property and the demolitions are selective and occur without warning, during the tourist season. At the same time, they complain that the demolitions are retaliatory in nature and punish citizens for their actions in the recent elections, while the citizens in question were never given the right to appeal to the courts against the administrative acts of demolition.

    Acts such as these prove that the Albanian Government does not respect the separation of powers. As part of their accession process, candidate countries must fully comply with EU requirements on the rule of law, property and the right to a fair trial, as enshrined in Articles 17 and 47 of the Charter of Fundamental Rights of the EU and Protocol No 1 to the ECHR. These practices call into question the commitment to the European path and raise issues of discrimination against specific communities.

    In view of the above:

    • 1.Is the Commission aware of any cases of arbitrary demolitions of properties by the Albanian authorities?
    • 2.What measures does the Commission intend to put in place to ensure that every citizen’s right to a fair trial against any administrative act is respected?

    Submitted: 16.7.2025

    Last updated: 24 July 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Written question – Türkiye’s use of pre-accession assistance (IPA) funds to finance espionage operations – Production of biometric passports – E-002880/2025

    Source: European Parliament

    Question for written answer  E-002880/2025
    to the Commission
    Rule 144
    Nikolas Farantouris (The Left)

    Reliable and substantiated international reports[1] reveal that a large part of the EU’s IPA funds to Türkiye have been channelled by President Recep Tayyip Erdoğan’s Government into funding espionage operations across Europe. The Turkish Ministries of the Interior and Foreign Affairs are alleged to have used hundreds of millions of euro to gather intelligence against Member States. The issue is further complicated by the fact that Türkiye is becoming a major producer of biometric passports and is already printing passports on behalf of Hungary and France,[2] while cooperation with the new Al-Jolani regime in Syria has also recently been announced.[3]

    In light of the above:

    • 1.What measures does the Commission intend to put in place to monitor the funds received by Türkiye in the framework of pre-accession assistance?
    • 2.Does the Commission intend to request the return of any funds not used for the purposes for which they were granted to Türkiye?
    • 3.Does the Commission intend to take measures to protect the biometric data of European citizens from non-EU countries such as Türkiye, which are involved in the collection and processing of such sensitive data?

    Submitted: 15.7.2025

    • [1] https://nordicmonitor.com/2025/06/eus-aid-to-turkey-diverted-to-spying-operations-in-europe-by-erdogan-government/
    • [2] https://www.biometricupdate.com/202209/turkey-to-print-hungarian-french-biometric-passports
    • [3] https://www.biometricupdate.com/202501/new-syrian-leadership-asks-turkey-to-supply-identity-cards-passports
    Last updated: 24 July 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Written question – Irish initiative to boycott trade with Israel and its violation of EU trade competence – E-002928/2025

    Source: European Parliament

    Question for written answer  E-002928/2025
    to the Commission
    Rule 144
    Bert-Jan Ruissen (ECR)

    In recent months, Ireland has revived the so-called Occupied Territories Bill[1], which aims to restrict or fully prohibit the importation to Ireland of any goods produced in Israeli settlements, including those in the West Bank and East Jerusalem. However, according to Article 3(1)(e) and Article 207 of the Treaty on the Functioning of the European Union (TFEU), only the EU institutions may adopt trade restrictions or embargoes. Individual Member States are therefore not allowed to impose unilateral trade restrictions. Moreover, previous Commission statements[2] on an earlier version of the bill mentioned how it would be in breach of EU trade rules.

    • 1.Is the Commission aware of the renewed debate on the Occupied Territories Bill in the Houses of the Oireachtas (the Irish Parliament)?
    • 2.Does the Commission consider these developments compatible with EU trade competence under Article 207 TFEU, and if not, in what way do they constitute a breach?
    • 3.Will the Commission take legal action against Ireland if the adoption of this law breaches EU trade rules, and what form might such actions take?

    Submitted: 16.7.2025

    • [1] Leahy, P. ‘Foreign affairs committee begins discussions on contentious Occupied Territories Bill’, Irish Times, 1 July 2025, https://www.irishtimes.com/politics/2025/07/01/foreign-affairs-committee-begins-discussions-on-contentious-occupied-territories-bill/.
    • [2] European Parliament, ‘Answer given by Vice-President Mogherini on behalf of the European Commission [to Written Question P-000081-2019]’, 14 February 2019, https://www.europarl.europa.eu/doceo/document/P-8-2019-000081-ASW_EN.html.
    Last updated: 24 July 2025

    MIL OSI Europe News –

  • MIL-OSI Europe: Written question – CAP cuts as a result of increased military spending and the consequences of this on the sustainability of the agricultural sector – E-002998/2025

    Source: European Parliament

    Question for written answer  E-002998/2025
    to the Commission
    Rule 144
    Irene Montero (The Left)

    Article 39 of the Treaty on the Functioning of the European Union establishes that the common agricultural policy (CAP) should ensure a fair standard of living for the agricultural community, assure the availability of supplies and ensure supplies at reasonable prices. However, the EU is making more and more cuts to the CAP in order to increase resources for military spending and rearmament. The Multiannual Financial Framework 2028–2034 proposal, presented on 16 July 2025, strengthens instruments such as the European Defence Fund while reducing the CAP budget by at least 20 %. These cuts – coupled with production costs, an uneven playing field and red tape – are threatening the sustainability of the sector.

    In the light of the above:

    • 1.How will the Commission ensure economic and ecological sustainability for the agricultural sector, as well as generational renewal, against this backdrop of cuts?
    • 2.What measures will the Commission adopt to safeguard the agricultural sector in the face of geopolitical instability and the volatility of energy prices arising from increased military spending and international conflicts?
    • 3.How will the Commission prioritise support to a key sector for food sovereignty and strategic autonomy for the EU in the context of increased focus on defence?

    Submitted: 18.7.2025

    Last updated: 24 July 2025

    MIL OSI Europe News –

  • MIL-OSI Security: Justice Department Sues New York City Over Sanctuary Policies

    Source: United States Attorneys General

    WASHINGTON – Today, the Justice Department filed a lawsuit against New York City, Mayor Eric Adams, and several other city officials to challenge New York’s sanctuary city laws.

    As detailed in the complaint, New York’s sanctuary policies have allowed dangerous criminals to roam the streets and commit heinous crimes within the community. These policies reflect an intentional effort to obstruct federal law enforcement and thus are preempted under the Supremacy Clause of the U.S. Constitution.

    “New York City has released thousands of criminals on the streets to commit violent crimes against law-abiding citizens due to sanctuary city policies,” said Attorney General Pamela Bondi. “If New York City won’t stand up for the safety of its citizens, we will.”

    “For too long, New York City has been at the vanguard of interfering with enforcing our immigration laws,” said Assistant Attorney General Brett Shumate. “Its efforts to thwart federal immigration enforcement end now.”

    The case, filed in the Eastern District of New York, is the latest action from the Justice Department fighting back against unlawful obstruction of enforcement of federal immigration laws. In the past three months, the Department has filed lawsuits against Los Angeles, New York State, Colorado, Illinois, the city of Rochester, New York, and several New Jersey cities to invalidate unconstitutional sanctuary policies. Recently, the Mayor of Louisville revoked the city’s sanctuary policy after the Justice Department threatened legal action.

    Read the full complaint here.

    MIL Security OSI –

  • MIL-OSI Africa: Liberia salutes African Development Bank President Adesina in landmark Government session

    Source: APO – Report:

    • I want you to know that your legacy in Liberia is strong and enduring, President Boakai tells Adesina
    • “With your vast natural resources, Liberia has no business being poor.” — Adesina

    Liberian President Joseph Nyuma Boakai convened the full spectrum of his government leadership to hear from African Development Bank President Dr. Akinwumi Adesina (www.AfDB.org), whom he lauded for a transformative decade at the helm of Africa’s premier development finance institution.

    The expanded cabinet meeting, held Tuesday 22 July at the Ellen Johnson Sirleaf Ministerial Complex in Monrovia, brought together all three branches of the Liberian government: executive ministers, legislative leaders, the Chief Justice, and heads of state-owned enterprises. The event served as both a celebration of partnership and a platform for Adesina to share leadership insights as he nears the end of his term in August 2025.

    “You have shown the world that bold ideas, when combined with clear vision and determination, can produce extraordinary results,” President Boakai declared. “Through your leadership, the African Development Bank has invested in real solutions that touch lives every day.”

    Underscoring the gravity of the occasion, the Liberian president added: “The fact that all three branches of our government are represented speaks volumes about the value we place on your visit and the respect we have for your leadership and contributions.”

    In his rousing keynote address titled “Liberia: Arise, and Shine!”, Dr. Adesina reflected on the Bank’s enduring partnership with Liberia, which has resulted in $1.02 billion in investments across 72 projects since 1967.

    Key achievements include nearly 2,500 km of electricity transmission lines connecting Liberia with Côte d’Ivoire, Sierra Leone, and Guinea; the Liberia Energy Efficiency and Access Project, which delivered nearly 40,000 new grid connections; and 177 km of new roads including the transformational Fish Town-Harper and Karloken to Fish Town corridors.

    A central highlight of the event was the launch of the Liberia Youth Entrepreneurship Investment Bank (YEIB), a flagship $17 million initiative under the African Development Bank’s Youth in Africa strategy. Liberia becomes the first African country to establish the dedicated youth-focused financial institution, aimed at equipping young Liberians aged 18-35 with the tools and capital to drive national development through entrepreneurship.

    President Boakai described the Bank’s portfolio as “more than numbers on paper.”

    “They are roads that connect our communities, energy that lights homes and businesses, and agriculture projects that strengthen food security and create income for our farmers,” he said.

    Drawing from his experience as Nigeria’s former Minister of Agriculture, and his decade-long leadership of the Bank, Adesina offered the Liberian cabinet a 7-point framework for transformational governance: setting clear and ambitious goals, ensuring measurable results, promoting teamwork and accountability and reforming institutions, especially the civil service and judiciary.

    “Don’t just blow the whistle, use your yellow card or red card. There is no need for rules in a soccer game if the referee never uses the yellow card or the red card,” Adesina said. “You cannot spend time baby-sitting poor performers. The public is eager for results and time is not on your side. So, be firm. Reward performers. Dispense with non-performers.”

    He recommended the adoption of a “One Government approach”, as well as the establishment of a presidential awards program to “recognize and incentivize inter-agency collaboration”; drawing from similar models at the African Development Bank.

    The Bank Group President urged the country to unlock greater value from its abundant resources. “With your vast natural resources, Liberia has no business being poor,” he stated. “The export of raw materials is the door to poverty. The export of value-added products is the highway to wealth.”

    During a Q&A session, Adesina emphasized the importance of technical and vocational training, citing that 60 percent of Liberia’s population is under the age of 35. He was responding to Education Minister Jarso Maley Jallah who inquired about strengthening entrepreneurship through the education system.

    Responding to a question from the Minister of Information, Cultural Affairs and Tourism, Jerolinmek Piah on achieving fiscal targets, Adesina urged the government to plug revenue leakages, noting that Africa loses $88 billion annually to illicit financial flows. “Make your country investable: invest in transparency, rule of law, create the right environment, provide incentives,” he added.

    Sannah Ziama, a local investor, praised Adesina’s visionary leadership and called for sustained investments in solar power to unlock Liberia’s industrial potential.

    As a low-income country and transition State, Liberia continues to benefit from the African Development Fund, the Bank’s concessional lending arm, as well as the Transition Support Facility, and the Nigeria Trust Fund.

    Liberia is also part of the inaugural group of countries that have developed energy compacts under the Mission 300 program, a joint initiative of the African Development Bank and the World Bank to deliver electricity to 300 million Africans by 2030.

    In recognition of his exceptional contributions, President Boakai presented Adesina with a Presidential Pin of Honour. Adesina had previously received Liberia’s highest national honour – the Order of the Star of Africa, Grade of Grand Band – in 2018.

    “Dr. Adesina, as you prepare to move on from this chapter, I want you to know that your legacy in Liberia is strong and enduring, President Boakai said. “The programs you have championed will continue to make an impact for years to come. Thank you for your faith in Liberia’s potential, and thank you for investing in our people, especially our youth.”

    Adesina was accompanied by the Bank’s Director General for West Africa, Lamin Barrow; Bank Executive Director for Liberia, Sierra Leone, The Gambia, Ghana and Sudan, Rufus Darkortey; and Acting Country Manager, Foday Yusuf Bob.

    Liberia’s historical connection with the African Development Bank dates back to the institution’s founding, when Liberian official Romeo Alexander Horton served as the pioneer Chairman of the Committee of Nine that established the Bank in 1964.

    Read Dr. Adesina’s address here (https://apo-opa.co/4maNUla).

    – on behalf of African Development Bank Group (AfDB).

    Media Contacts:
    Natalie Nkembuh and Tolu Ogunlesi
    Communication and External Relations
    media@afdb.org

    About the African Development Bank Group:
    The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org

    Media files

    .

    MIL OSI Africa –

  • MIL-OSI USA: Oversight Committee Leaders Applaud President Trump’s Bold Plan to Cement America’s Dominance in Artificial Intelligence

    Source: United States House of Representatives – Representative Eric Burlison (R-Missouri 7th District)

    WASHINGTON – Today, House Committee on Oversight and Government Reform Chairman James Comer (R-Ky.), Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs Chairman Eric Burlison (R-Mo.), and Subcommittee on Cybersecurity, Information Technology, and Government Innovation Chairwoman Nancy Mace (R-S.C.) applauded President Trump’s new Action Plan to cement U.S. dominance in artificial intelligence (AI) and usher in a new golden age of American AI innovation. The White House unveiled “Winning the AI Race: America’s AI Action Plan,” outlining more than 90 federal policy initiatives today across three strategic pillars—Accelerating Innovation, Building American AI Infrastructure, and Advancing U.S. Leadership in Global Diplomacy and Security—that the Trump Administration will implement in the coming weeks and months.

    “President Trump’s bold leadership has once again delivered a transformative vision for America’s future in artificial intelligence. This Administration understands that AI represents the next frontier, and maintaining our technological edge is a critical priority in the years ahead. This AI Action Plan embraces AI innovation in the United States and aims to reduce barriers in the AI field to ensure America’s dominance on the international stage. The House Oversight Committee will continue to support the Trump Administration’s AI initiatives and evaluate legislative opportunities aimed at addressing the barriers and challenges preventing the federal government from fully realizing the benefits of AI,” said Chairman James Comer. 

    “Under President Trump’s leadership, America is charting a bold course to secure global dominance in artificial intelligence. The President’s AI Action Plan embraces American innovation and takes decisive steps to eliminate bureaucratic barriers that have slowed AI progress. America has the talent, expertise, and resources to lead the world in AI but what we needed most was a president with the vision to recognize its importance for our future prosperity. Alongside President Trump’s Administration, the Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs will discuss ways to effectively and responsibly harness AI to bolster the United States’ economic competitiveness, national security, and technological leadership,” said Subcommittee Chair Eric Burlison.   

    “President Trump’s AI Action Plan—reshaping AI regulatory frameworks, investing in infrastructure, and championing American AI values globally—is a critical step toward ensuring we win the AI race. This Administration recognizes that barriers remain, and challenges must be addressed if the government is to fully realize the benefits of this transformative technology. The Subcommittee on Cybersecurity, Information Technology, and Government Innovation will continue working to ensure the entire federal government is equipped with the tools and authority needed to responsibly deploy AI at scale and unlock its full potential,” said Subcommittee Chair Nancy Mace.

    Alongside President Trump’s efforts to secure America’s leadership in AI, the House Oversight Committee is spearheading efforts to remove unnecessary barriers and accelerate responsible AI innovation—boosting efficiency, improving public services, and delivering savings for taxpayers. In addition, the Committee is engaging with AI industry leaders on how to unleash the technology the right way: effectively and responsibly. 

    MIL OSI USA News –

  • MIL-OSI USA: Senator Marshall: The Obama White House Was the True Threat to Democracy

    US Senate News:

    Source: United States Senator for Kansas Roger Marshall

    Senator Marshall Joins Newsmax Live to Discuss The DNI Report and August Recess
    Washington – On Thursday, U.S. Senator Roger Marshall, M.D. (R-Kansas), joined Marc Lotter and Emma Rechenberg on Newmax’s National Report to discuss the revelations from Director of National Intelligence (DNI) Tulsi Gabbard’s report that indicate President Obama knew that the Russian misinformation story was a hoax, and how the Senator believes the Senate should stay through August to confirm President Trump’s nominees.

    Click HERE or on the image above to watch Senator Marshall’s full interview.
    On the contents of the new DNI report on the Obama White House:
    “Well, this is the true threat to Democracy. The smoking gun is very evident right here, where in the Oval Office, Barack Obama switched what the intelligence community had told him. He dreamed up this story, and why did he do it? Number one is, he wanted to delegitimize the election. Number two, he wanted to cripple the President’s [Trump] legacy going forward as well. When I look at something like this, I want to think about a little bit of logic here. You know, what was their motivation? I just described that…
    “And this is the new report, okay, Congress had never seen this report from the Oval Office. It’s consistent with the rest of the story. You all have reported on the FISA abuse, Russia, Russia, Russia. This is the next chapter. And then here’s the evidence, here’s the evidence, here’s the smoking gun. Here is a report from the Oval Office itself, saying Barack Obama, in the room with Joe Biden and all of his cronies, saying: ‘Let’s switch the narrative of the story, let’s say that Russia interfered with the election, let’s delegitimize the election and the will of the people.’”
    On why the media wants to bury this story:
    “Yeah, I’m reminded of that Jack Nicholson saying, ‘mister, you can’t [handle] the truth…’ but look here’s the truth, yeah, look at the evidence. Here’s a report from the Oval Office: Barack Obama is given a report from the Intelligence Agency saying that Russia had minimal impact on the election.
    “And Barack says, ‘Oh no, let’s change that narrative, let’s go out there and delegitimize the election and tell the American people that Russia interfered with the election.’ Otherwise, how in the world could Hillary Clinton be beaten? Never mind that she was on tranquilizers at the time and to her wits’ end, and was craving for all the power she can get.
    “Look, again, this is the threat to Democracy. This is the true threat to Democracy when the President of the United States weaponizes the entire Intelligence Agency and the legacy media against the future President of the United States, the duly elected future President of the United States.”
    On whether the Senate will remain in DC during the August recess period:
    “Well, look, I certainly am out there publicly saying I want to stay. We have lunch together as Republican Senators every Tuesday, Wednesday, and Thursday. I’ve been very consistent with our message. We need to stay here to fulfill the will of the American people, the 78 million people who voted for President Trump.
    “Look, the political appointees right now that he has in those agencies are drowning. They need their junior members, their colonels, so to speak, to push back on the swamp. I had no idea how deep and wide this swamp is up here.
    “So, we need more of those political appointees in there to push back and then go through and fulfill the President’s agenda, which is the will of the people. So, I’m absolutely committed to staying here, whatever it takes. We need to get these appointees across the finish line.”

    MIL OSI USA News –