MIL-OSI Australia: Transcript – ABC 7.30 with Sarah Ferguson

Source: Murray Darling Basin Authority

SARAH FERGUSON: I just want to change the tone very slightly here because we are used to politicians appearing to be thick-skinned. The execution of power demands it, and I should say this is not a reflection on Barnaby Joyce. I just wanted to change the tone. Because tonight we’ll see a slightly different side of Education Minister Jason Clare, who today introduced the Government’s childcare legislation and who is tasked with fixing the crisis in childcare that’s left some of our youngest children vulnerable. He joined me earlier.

Jason Clare, welcome.

JASON CLARE: Thank you.

FERGUSON: So, new legislation today, it gives you the power to cut off subsidies to childcare centres using the big stick. What is the threshold for taking that decision?

CLARE: Well, it depends on the seriousness of what’s happening in a centre. If we’re concerned that there’s an imminent threat to the safety of children in a centre, that centre can be shut down today —

FERGUSON. So, that already exists?

CLARE: That already exists. And state regulators can and do, do that. But if we’ve got centres that are not meeting that standard, that quality and safety standard, there’ll be the capacity, because of this legislation, for the Secretary of my department to issue a show cause notice to a centre to explain why they are not meeting that standard, otherwise the funding will be cut off within 28 days. But there’s also the flexibility in the legislation to set conditions. So, the Secretary could also say, you must do a number of things in order to maintain your funding. That flexibility is important here to make sure that we target the right centres. And I’ve got to tell you, there’s a bit of work going on right now before the legislation’s passed between my department and state regulators to make sure that we’ve got a list of the centres that we can and will target with this legislation.

FERGUSON. So, that’s the question. How do you know which of Australia’s 15,000 centres to target? So tell me about that work?

CLARE: Well, they know. State regulators know this because they rate centres —

FERGUSON: Yes, but do they? Because the numbers on the frequency of testing, some of them haven’t been. I think the average is every four years. Some centres haven’t been tested for 10 years. So, what information are they relying on?

CLARE: Well, they know through the centres that they’ve rated that there’s about 4 per cent of centres that aren’t meeting that minimum safety standard and that can be everything from an exit sign through to lack of supervision. They also know the centres where they’ve set conditions for them themselves, and they’ve told them, you’ve got a couple of months to meet the grade, meet the standard and then they come back a couple of months later and they haven’t. They’re the sort of centres that the states are telling us they want to use this legislation to pull the funding from.

FERGUSON: I suppose the question is, is this plan built on shaky foundations? Given that the way the system works, the way the accreditation is done, the way the testing is done, there are such huge gaps in it. Yes, there may be centres that have been identified by the states and territories. What about all those centres, some of them, that haven’t been visited for 10 years? What about those centres that have waivers? Where do they fit in?

CLARE: Well, this is where states need to step up. You know, the Commonwealth needs to step up. All centres need to step up here if we’re going to make sure that this legislation does what we want it to do. But, you know, Sarah, I’m also not here to say that this is a silver bullet, that this is going to guarantee that every child’s safe just because of this legislation. I spent a good part of the day dealing with some mothers of children who were sexually assaulted and abused in centres that were already at that standard. That doesn’t mean that we shouldn’t be using the power that the Commonwealth has, with all the funding we provide to centres, to say to centres, if you’re not at that standard, we’re going to remove the funding. At its core, this is not about cutting off funding to centres and shutting centres down. If it works the way it should work, it’ll send a message to the people who run these centres that you’ve got to get to that standard or the money’s going to be turned off.

FERGUSON. So, what do you do? You say you want the states to do more, but what do you do about the fact that there clearly aren’t enough regulators available in the states and territories to look at all of those 15,000 centres? There are too many with very long gaps, never, never tested, or the little gaps that I was talking about. So, you know, there aren’t enough regulators in the states to visit those centres. So, what do you do about that?

CLARE: There’s two things. The regulators already tell us they know where to target this legislation at the centres that they repeatedly go to, and they’re not meeting standards. But there’s also more work that the states need to do to build that workforce. And we’ve seen Queensland, South Australia and Victoria announce an extra investment in their regulators. That’s a good thing. There’s work that’s got to be done right across the country. And it’s not just this legislation; it’s not just the work of regulators. It’s the things we talked about a couple of weeks ago. It’s about a register so that we know where workers are from centre to centre and from state to state. It’s about CCTV and how that works. If we’re going to roll that out, we’ve got to make sure we do it in the right way, so that the sort of predators we’re all worried about in our centres can’t use that sort of information for all the wrong reasons. And it’s about the sort of training that we provide to the most important people who work in those centres. One of the things I’m very conscious of in this job is that with everything that’s happened in the last couple of weeks, the people who work in our centres, the good, honest, hard-working people who love our kids, look after our kids, including mine in centres, feel tarnished, feel tarred by this. People have been spat on in the streets for wearing their uniform. They’re the best asset we’ve got here to keep our kids safe, 99.9 per cent of them are those people.

FERGUSON: You’re clearly worried about those people, aren’t you?

CLARE: I am, I am. They do some of the most important work in the world. When my wife fell pregnant for the second time, we showed an ultrasound to my little boy, Jack, and told him he was going to be a big brother. And we thought, you know, he’d be really excited. First thing he said was, I can’t wait to tell Kelly. Kelly is the woman that looked after him at childcare, and it told me that this is not an ordinary job. These are very special people, and they’re as hurt and as angry as everybody else out there. And I’ve got to use this role and this responsibility and this opportunity to tell Australia how important they are as well. But we’ve got to equip them with the skills that they need and to identify a predator lying in clear sight who might be grooming a child or grooming them. And that’s what mandatory child safety training is all about.

FERGUSON: Just come back to the way the system works, because you’re bringing your personal experience to that. It’s important. It’s something that’s clearly moved you because you’ve been very lucky to have excellent childcare staff. But do you think that they are also being let down by the standard system? It’s been in place for a long time. Is it still adequate for what we need to address what is a crisis in the childcare system?

CLARE: No. No.

FERGUSON: So do you need to – Well, I’m asking about the system of standards itself. For example, as you know, the way things stand at the moment, a childcare centre cannot be failed for its performance. Do you need to have at least a standard of failure?

CLARE: Well, it sort of is, but there’s euphemisms about how you describe it.

FERGUSON: Isn’t it time we got rid of all of the euphemisms in this area?

CLARE: The point is, and it’s- I think it’s pretty bloody obvious that the system has failed parents here and that we’ve all got a responsibility to step up. That’s the Commonwealth Government, that’s State Governments, that’s the people who run these centres as well. Part of this legislation is the power to cut off funding. Part of it is also the power to advise parents or to publish information to tell the mums and dads whose children are at these centres that unless the standards improve at that centre, we’re going to cut off their funding. Not just them, but also to pass that same information on to the board members who run these companies and the stock exchange. You know, the big-

FERGUSON: Do you think those big companies, in particular the private equity involved in childcare and some of the big companies with multiple centres, do you think these people have been indifferent to the suffering of children in those centres?

CLARE: Money talks, and unfortunately, some organisations have put profit ahead of the safety of our children. Now I’m happy for –

FERGUSON: (Interjecting) Will any of those companies, those groups, still be operating in Australia?

CLARE: If they don’t meet the standards that we set as a nation, that parents expect and that our kids deserve, no. If they meet those standards, then that’s good. What this legislation’s about is sending a very clear message. You know what the standards are. If you don’t meet them, then there’s no place for you in the childcare system in Australia —

FERGUSON: (Interjecting) I want to be very clear about the standards because I’m raising questions about the nature of the standards themselves. This whole system that you are creating depends on the standards themselves being strong and effective. Do those standards themselves, the way we rate childcare centres, do they need to be overhauled?

CLARE: I think the standards are sound. I think the rating system is sound. I think there’s more work that needs to be done by the states to make sure that we’re rating centres properly. Now that doesn’t mean –

FERGUSON: (Interjecting) Frequently enough?

CLARE: — And more frequently, and it happens differently in different states. So, there’s- please don’t interpret this as me blaming the states. We’ve all got a responsibility here, whether it’s Labor Governments, Liberal Governments, State or Federal. Good work’s been done. But not enough, not fast enough. There’s more work that needs to be done if we’re serious about making sure that we keep the kids that are walking through and sometimes being carried through the doors of our childcare centres safe.

FERGUSON: Jason Clare, thank you very much for answering the questions and also sharing that story about yourself. I appreciate it.

CLARE: Thank you.

FERGUSON: Thank you.

MIL OSI News –

July 24, 2025

MIL-OSI USA: Miller-Meeks Introduces Bill to Rename Fort Madison Post Office in Honor of Martin L. Graber

Source: United States House of Representatives – Representative Mariannette Miller-Meeks’ (IA-02)

Washington, D.C. – Today, Congresswoman Mariannette Miller-Meeks (IA-01) introduced legislation to rename the U.S. Post Office located at 1019 Avenue H in Fort Madison, Iowa, as the “Martin L. Graber Post Office.” The bill honors the life and legacy of the late Iowa State Representative Martin Graber, a dedicated public servant, 32-year Iowa Army National Guard veteran, and beloved leader in southeast Iowa.

Joining Miller-Meeks in leading this bill are Iowa Representatives Ashley Hinson (IA-02) and Randy Feenstra (IA-04).

“Martin Graber embodied the very best of Iowa: faith, family, and service. He was a patriot, a leader, and a constant source of strength for Fort Madison and all of southeast Iowa,” said Rep. Miller-Meeks. “Naming this post office in his honor ensures his legacy of service and sacrifice lives on. I’m deeply proud to lead this effort to recognize a man who gave so much to his community and his country.”

“I am so proud to support legislation renaming the Fort Madison Post Office after the late Iowa State Representative Martin Graber,” said Rep. Ashley Hinson. “His life epitomized patriotism, courage, and self-sacrifice, and I am grateful for his dedicated service to Iowans for so many years. This landmark will forever be remembered in his name and is a testament to his legacy.”

“I’m proud to join my colleagues in the Iowa delegation to rename the Fort Madison Post Office in memory of Martin Graber. As a member of the Iowa legislature, he served the families, farmers, and entrepreneurs of Lee County with class and integrity, and as a Brigadier General in the Iowa National Guard, he sacrificed for our state and country,” said Rep. Feenstra. “Renaming the Fort Madison Post Office is a small gesture that honors his life of service and commemorates his commitment to Southeast Iowa.”

Read the bill text HERE.

MIL OSI USA News –

July 24, 2025

MIL-OSI United Kingdom: Prime Minister secures thousands of British jobs and £6 billion in investment and export wins as historic trade deal with India signed

Source: United Kingdom – Executive Government & Departments

Press release

Prime Minister secures thousands of British jobs and £6 billion in investment and export wins as historic trade deal with India signed

Today, the Prime Minister will welcome nearly £6 billion in new investment and export wins.

Thousands of jobs created for Brits through new Indian investment and export wins worth almost £6 billion
New figures show that £4.8bn trade deal will unlock economic growth for each region and nation of the UK – delivering on the government’s Plan for Change
UK and India also agree to ramp up joint efforts against organised crime and illegal migration with new framework to tackle trafficking, document fraud and remove barriers to return

Today, the Prime Minister will welcome nearly £6 billion in new investment and export wins, which will create over 2,200 British jobs across the country as Indian firms expand their operations in the UK and British companies secure new business opportunities in India. These deals will drive jobs in high-growth sectors like aerospace, technology and advanced manufacturing – supporting engineers, technicians and supply chain workers, in every corner of the UK.

It comes as the Prime Minister is set to meet the Prime Minister of India, Narendra Modi, today for the signing of the landmark UK-India trade deal. From Coventry to Carlisle, new analysis shows communities across every region of the UK will benefit from its £4.8 billion increase to UK GDP each year.

Thanks to the deal, British workers will enjoy a collective uplift in wages of £2.2 billion each year and could also see cheaper prices and more choice on clothes, shoes, and food products.

The UK already imports £11 billion in goods from India, but liberalised tariffs on Indian goods will make it easier and cheaper to buy their best products. For businesses, this could mean potential savings when importing components and materials used in areas such as advanced manufacturing or luxury and consumer goods.

Prime Minister Keir Starmer said:

Our landmark trade deal with India is a major win for Britain. It will create thousands of British jobs across the UK, unlock new opportunities for businesses and drive growth in every corner of the country, delivering on our Plan for Change.

We’re putting more money in the pockets of hardworking Brits and helping families with the cost of living, and we’re determined to go further and faster to grow the economy and raise living standards across the UK.

India’s average tariff on UK products will drop from 15% to 3% which means British companies selling products to India from soft drinks and cosmetics to cars and medical devices will find it easier to sell to the Indian market.

Whisky producers will benefit from tariffs slashed in half, reduced immediately from 150% to 75% and then dropped even further to 40% over the next ten years – giving the UK an advantage over international competitors in reaching the Indian market.

Business and Trade Secretary Jonathan Reynolds said:

The billions brought to our economy from the trade deal signed today will reach all regions and nations of the UK so working people in every community can feel the benefits.

The almost £6 billion in new investment and export wins announced today will deliver thousands of jobs and shows the strength of our partnership with India as we ensure the UK is the best place in the world to invest and do business.

This government is proving time and again that we can deliver on our mission to grow the economy, put more money in pockets and boost living standards under our Plan for Change.

The two Prime Ministers have also signed a renewed Comprehensive and Strategic Partnership, which will see closer collaboration on defence, education, climate, technology and innovation. This comes exactly one year since the countries signed the landmark UK-India Technology Security Initiative, which sees joint work on telecoms security and unlocking investment across emerging technologies – telecoms, critical minerals, AI, quantum, health/bio tech, advanced materials and semiconductors.

The UK and India have also agreed to strengthen cooperation in tackling corruption, serious fraud, organised crime, and irregular migration through enhanced intelligence sharing and operational collaboration. This includes committing to finalising a groundbreaking new criminal records sharing agreement, facilitating the exchange of criminal records to support criminal proceedings, maintain accurate watchlists and enable the enforcement of travel bans. These measures represent a significant step forward in joint efforts to combat organised immigration crime.

Aligned with the UK’s recent Industrial and Trade Strategies, the deal will support the sectors which drive the most growth for the economy. The UK’s large and varied manufacturing sectors will benefit from tariffs cut on aerospace (as high as 11% reduced to 0%), automotives (up to 110% down to 10% under a quota) and electrical machinery (from up to 22% down to either 0% of a 50% reduction).

A reduction in tariffs, combined with a reduction in regulatory barriers to trade between the UK and India are estimated to:

Increase UK exports to India by nearly 60% in the long run – this is equivalent to an additional £15.7 billion of UK exports to India when applied to projections of future trade in 2040.
Increase bilateral trade by nearly 39% in the long run, equivalent to £25.5 billion a year, when compared to 2040 projected levels of trade in the absence of an agreement

The clean energy industry will have brand new, unprecedented access to India’s vast procurement market as the country makes the switch to renewable energy and continues to see growing energy demand.

For financial and professional business services, locked in access will offer certainty to expand in India’s growing market and measures such as binding India’s foreign investment cap for the insurance sector, ensuring UK financial services companies are treated on an equal footing with domestic suppliers.

Meanwhile, 26 British companies have secured new business in India. Airbus & Rolls-Royce will soon begin delivering Airbus aircraft – with over half powered by Rolls-Royce engines – to major Indian airlines as part of around £5 billion worth of contracts recently agreed. These orders will help sustain hundreds of jobs across their respective sites in Filton, Broughton and Derby.

18 firms have confirmed new investment including Zerowatt Energy, AI powered energy intelligence platform is setting up its Global HQ in Leicester. The firm will invest £10m and create 50 new jobs across Leicester, Manchester, Edinburgh and London over the next three years.

Other UK and Indian businesses who have confirmed almost £6 billion in new investments and export deals today creating over 2,200 jobs across the UK includes:

Carbon Clean, a UK-based leader in carbon capture, with projected UK export contributions of £83 million over the next five years, has invested £7.6 million in a Global Innovation Centre in Mumbai. This ODI and export wins will unlock 250 jobs across London, Glasgow and Huddersfield as well as 100 jobs in Mumbai.
AI and data services company, DCube AI, is investing £5 million in the UK, unlocking 50 jobs across Manchester and London in the next three years to strength its technology offering to UK customers.
Occuity, an innovative UK AI healthcare company has partnered with Remidio Innovative Solutions Pvt. Ltd., a leading Indian manufacturer and distributor of ophthalmic medical devices to bring Occuity’ s cutting-edge ophthalmic screening technologies to India, improving access to innovative and non-invasive eye screening and leading to an export value of £74.3 million over 5 years.
Johnson Matthey, a UK-based leader in chemicals and sustainable technologies, has secured recent contracts of over £20 million for process licensing, engineering, and catalysts supply in India. The company will also invest £4 million in a new plant at Taloja (Maharashtra) and in doubling its capacity at an existing site in Panki, Uttar Pradesh, with contracts are helping to create up to 20,000 jobs in India during the construction phase of these projects.
Marcus Evans Group, a global business intelligence and summits business company established its new Global Technology office in Mumbai to serve its 59 offices worldwide and has confirmed a combined Export (£42mn) and ODI (£27mn) win of £69 million over the next five years from India.
LTIMindtree , a global technology consulting and digital solutions company plans to further expand its London operations by adding over 300 highly skilled jobs, investing £1m. This includes a state-of-the-art AI innovation studio and showcase lab.
Aurionpro, a global enterprise technology leader in Banking, Payments, Insurance, Data Centers, and Public Sector technology is investing over £20M to launch its UK HQ, creating 150+ high-value jobs in multiple locations across UK over 3 years. It will also open AI-powered R&D labs in collaboration with top UK universities to develop next-gen transport technology and lead the global Safe Superintelligence (SSI) movement, ensuring AI is built safely and ethically.

Tufan Erginbiligic, Rolls-Royce CEO, said:

India is an important market for our business, with over 90 years of partnership with Indian industry and the Indian Government. We welcome the provisions in this Free Trade Agreement, including those that bring closer alignment with international standards for trade in civil aerospace. These agreements will benefit Rolls-Royce and our customers, paving the way for future aerospace growth in India.

Nik Jhangiani, Interim Chief Executive, Diageo, said:

This agreement marks a great moment for both Scotch and Scotland, and we’ll be raising a glass of Johnnie Walker to all those who have worked so hard to get it secured.

William Bain, Head of Trade Policy at the BCC, said:

The signing of this agreement is a clear signal of the UK’s continuing commitment to free and fair trade. It will open a new era for our businesses and boost investment between two of the world’s largest economies.

Currently around 16,000 UK companies are trading goods with Indian companies, and there is high interest in our Chamber Network to grow that.  This deal will create new opportunities in the transport, travel, creative and business support sectors alongside traditional strengths in finance and professional services.

Jean-Etienne Gourgues, Chivas Brothers Chairman and CEO, said:

Signature of the UK-India FTA is a sign of hope in challenging times for the spirits industry. India is the world’s biggest whisky market by volume and greater access will be an eventual game changer for the export of our Scotch whisky brands, such as Chivas Regal and Ballantine’s.

The deal will support long term investment and jobs in our distilleries in Speyside and our bottling plant at Kilmalid and help deliver growth in both Scotland and India over the next decade. Let’s hope that both governments will move quickly to ratification so business can get to work implementing the deal!

Published 23 July 2025

MIL OSI United Kingdom –

July 24, 2025

MIL-OSI Russia: Russia and Ukraine held the 3rd round of peace talks in Istanbul

Translation. Region: Russian Federal

Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

An important disclaimer is at the bottom of this article.

Source: People’s Republic of China – State Council News

ISTANBUL, July 23 (Xinhua) — Russian and Ukrainian delegations held the third round of peace talks at the Ciragan Palace in Istanbul on Wednesday, which started at 20:30 local time (17:30 GMT) and lasted for almost an hour and a half.

The Russian and Ukrainian delegations were headed by Russian presidential aide Vladimir Medinsky and Secretary of the National Security and Defense Council of Ukraine Rustem Umerov, respectively. The talks were chaired by Turkish Foreign Minister Hakan Fidan and head of the Turkish National Intelligence Organization Ibrahim Kalin.

At the end of the negotiations, V. Medinsky told journalists that the Russian side proposed creating three Russian-Ukrainian working groups that would work online to resolve political, humanitarian and military issues.

He also noted that both sides agreed on another round of prisoner exchange.

Before the start of the negotiations, H. Fidan made an opening speech in which he called on the delegations of both countries to engage in productive negotiations aimed at achieving a truce and ultimately ending the war.

“Our goal is to put an end to this bloody war, which has cost too much, as soon as possible,” said H. Fidan.

Two previous rounds of talks in Istanbul, held on May 16 and June 2, resulted in the exchange of thousands of prisoners of war and the bodies of dead soldiers, but produced little progress on achieving a ceasefire. –0–

Please note: This information is raw content obtained directly from the source of the information. It is an accurate report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

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MIL OSI Russia News –

July 24, 2025

MIL-OSI USA: Congressman Allen Introduces Bill Preserving Consumer Choice

Source: United States House of Representatives – Congressman Rick Allen (R-GA-12)

Today, Congressman Rick W. Allen (GA-12) introduced the Don’t Mess with My Home Appliances Act. Following the Biden-Harris Administration’s four-year assault on consumer choice, this legislation implements necessary reforms to the Energy Policy Conservation Act (EPCA) to prevent future administrations from prioritizing a radical rush-to-green agenda over the affordability and availability of reliable household appliances that Americans rely on every day.

Following the bill’s introduction, Congressman Allen issued the statement below:

“Under the guise of energy efficiency, the Biden-Harris Administration waged a four-year war on domestic energy and consumer choice, and it was American families that paid the price. From gas stoves, refrigerators, and freezers, to washers, dryers, dish washers, and air conditioners—no household appliance was off limits in their pursuit of a radical rush-to-green agenda. We cannot allow that to happen again,” said Congressman Allen.

“The Don’t Mess with My Home Appliances Act is a necessary measure to prevent future administrations from issuing burdensome standards on household appliances that would drive up costs and reduce availability. I am grateful for Chairman Guthrie’s and Chairman Latta’s support as we preserve consumer choice and ensure the federal government does not tilt the scales on what appliances Americans should buy.”

“Families should have the freedom to choose what home appliances they buy and use. Under the Biden-Harris Administration, heavy-handed mandates created unworkable regulations that led to higher prices,” said Chairman Guthrie. “The Don’t Mess with My Home Appliances Act would reform the Department of Energy’s energy efficiency standards process to protect consumer choice and ensure American companies can continue to innovate. Thank you to Congressman Allen for leading this important legislation that stands up for working Americans.”

“American families should have the right to choose the appliances that work best for their homes and needs. This commonsense bill puts consumers first by restoring flexibility, encouraging innovation, and ensuring there are not one-size-fits-all federal regulations. I thank Congressman Allen for his leadership on this effort to protect American families and businesses,” said Rep. Bob Latta, Chairman of the Energy Subcommittee of the House Energy and Commerce Committee.

BACKGROUND: Enacted in 1975, the EPCA provides specific criteria the Department of Energy (DOE) must follow in order to propose a new appliance efficiency standard. The DOE may only propose a new standard if it results in a significant conservation of energy, is technologically feasible, and economically justified. The Biden-Harris Administration consistently ignored these critical consumer protections by proposing and finalizing standards that violate the statute. The Don’t Mess with my Home Appliances Act would prevent future abuses by:

Eliminating unnecessary and duplicative rulemaking requirements
Authorizing the Secretary of Energy to amend or revoke a standard if it increases costs for consumers, does not result in significant energy or water savings, is not technologically feasible, or results in the unavailability of product
Protecting affordability by requiring the DOE to consider the cost to low-income households and the full-life cycle cost of appliances when determining if the new standard is economically justified
Establishing minimum thresholds for energy or water savings that must be achieved before imposing new standards
Prohibiting the Secretary of Energy from banning products based on the type of fuel that product uses (no natural gas bans)

Full bill text can be viewed HERE.

MIL OSI USA News –

July 24, 2025

MIL-OSI New Zealand: Climate change: ICJ ruling is a landmark win for children – Save the Children

Source: Save the Children

The historic climate change ruling at the International Court of Justice (ICJ) today is a landmark win for child campaigners, acknowledging the adverse impacts of climate change on child rights, and offering children renewed hope, Save the Children said.

The Advisory Opinion delivered by the world’s highest court finds that states’ legal obligations to address climate change extend beyond existing climate agreements. It also found that “states must take their obligations under international human rights law into account when implementing their obligations under the climate change treaties and other relevant environmental treaties.”

While not legally binding, leading environmental lawyers say the ruling “could become a guiding star for climate policies at all levels of governance”, including how States are held accountable under multiple areas of international law.

The Advisory Opinion originated from an extensive campaign led by a group of law students from the Pacific Islands, with strong support from the Republic of Vanuatu [1].

In December last year, Vepaiamele, 16, a child campaigner with Save the Children Vanuatu, travelled to The Hague with the Government of Vanuatu – the only child to attend as part of a government delegation – to speak about the impacts of climate change on the Pacific island nation and call for action.

Vepaiamele said today: “This Advisory Opinion is everything I hoped for and I am so happy with this outcome as I know it will pave the way for a safer future for youth like myself and future generations, too.”

Speaking from The Hague last year , Vepaiamele said:

“As a young Ni-Vanuatu girl, I feel the effects of climate change every day of every year. I’ve experienced many cyclones. It can be kind of terrifying sometimes, especially the really strong ones. Every cyclone, our classrooms are destroyed, our homes are flattened to the ground, and hospitals and communication towers are ripped apart. And then there’s also the mental health impacts, and we don’t really talk about it that much, but it can really cause anxiety in children and young people.”

Human-induced climate change is driving up global temperatures, with the past 10 years the warmest on record, according to the World Meteorological Organization. Children, particularly those affected by inequality and discrimination, bear the brunt of climate change impacts that are already forcing them from their homes, putting food out of reach, damaging schools and increasing risks like child marriage as they are forced out of education and into poverty.

Limiting warming temperatures through the rapid phase-out of the use and subsidy of fossil fuels is critical for children’s rights and lives, Save the Children said.

Earlier this year, research released by the child rights organisation with the Vrije Universiteit Brussel (VUB) found that the difference between global temperature rise of 1.5°C and 2.7°C could see 38 million more children from the 2020 birth cohort face unprecedented lifetime exposure to extreme heatwaves. [2] Save the Children also called for increased climate finance targeted at helping children and their families, child-centred and locally led adaptation and an increase in the participation of children in shaping climate action.

Save the Children New Zealand CEO Heather Campbell says, “The ICJ’s opinion strengthens the argument that climate inaction is a form of intergenerational injustice, disproportionately borne by those least responsible and least equipped to adapt.

“At home in Aotearoa New Zealand, children and their families are experiencing the devastating impacts of extensive flooding and other climate-related emergencies, including Cyclone Gabrielle. Communities across the Nelson Tasman region are still reeling from floods that have destroyed homes and farmland, displaced families and closed schools.

“On a recent visit to Solomon Islands, children told us about the impact rising sea levels were having on their communities, including monthly flooding in homes and schools, saline infiltration into fresh water supplies, and crops being destroyed. In other parts of the Pacific, communities are having to constantly rebuild after multiple cyclones in the last few years alone. These are not future scenarios – they are current realities.

“Save the Children welcomes the finding from the ICJ, and we also urge governments and development agencies to ensure that climate finance reaches those on the frontline of this crisis.

“Currently, only 2.4% of climate finance from multilateral funding sources is child centred. Even without the Court’s opinion, we know that states must do far more to protect children from the worst impacts of this crisis, including by significantly increasing climate finance to uphold children’s rights and access to health, education and protection.”

In light of the ICJ’s Advisory Opinion, Save the Children New Zealand is calling on the New Zealand Government to renew its commitment to provide climate finance to help communities recover from climate induced loss and damage as well as working to reduce the country’s carbon emissions.

As the world’s leading independent child rights organisation, Save the Children works in about 110 countries, tackling climate change across everything we do. Save the Children supports children and their communities across the Pacific and globally in preventing, preparing for, adapting to, and recovering from both sudden climate disasters and slow onset climate change. We have set up floating schools, rebuilt destroyed homes and provided cash grants to families hit by disasters.

We also work to influence governments and other key stakeholders in Aotearoa New Zealand and around the world on climate policies, including at the UNFCCC COP summits, giving children a platform for their voices to be heard.

Notes:

Multimedia can be found here including Vepaiamele with other young people on Tuesday 22 July, Vepaiamele at the Hague, and general vision of Vanuatu

[1] The Advisory Opinion is in response to a Pacific-led resolution (A/RES/77/276) to the UN General Assembly adopted by consensus on 29 March 2023. This was the result of an extensive campaign by a group of law students from the University of the South Pacific ( Pacific Islands Students Fighting Climate Change ) with strong support from the Republic of Vanuatu. Save the Children has worked closely with the Pacific Islands Students Fighting Climate Change to ensure the voices of children and young people are incorporated into countries’ written and oral submissions to the Court. As part of her campaigning work, Vepaiamele and other activists met with embassies of high emitting countriesin Vanuatu ahead of the hearing to try and influence their submissions.

[2] The report found that, for children born in 2020, if global temperature rise is limited to 1.5°C rather than reaching 2.7°C above pre-industrial levels:

– About 38 million would be spared from facing unprecedented lifetime exposure to heatwaves; o About 8 million would avoid unprecedented lifetime exposure to crop failures; o About 5 million would be spared from unprecedented lifetime exposure to river floods; o About 5 million would avoid unprecedented lifetime exposure to tropical cyclones; o About 2 million would avoid unprecedented lifetime exposure to droughts; o About 1.5 million children would be spared unprecedented lifetime exposure to wildfires.

MIL OSI New Zealand News –

July 24, 2025

MIL-OSI New Zealand: International Court of Justice climate ruling a powerful tool for holding countries to account – Oxfam

Source: Oxfam Aotearoa

The International Court of Justice has ruled that governments must phase out fossil fuels, rapidly reduce emissions, provide remedy to those facing climate damages, and provide climate finance to developing countries.

Oxfam climate change policy lead Nafkote Dabi said:

“Oxfam is proud to have supported young climate defenders from the Pacific and elsewhere who bravely took their fight for justice from a classroom in Vanuatu to the world’s highest court. They won the world a tremendous victory today.

This ruling elevates national climate commitments everywhere by confirming that countries must reduce emissions enough to protect the universal rights to life, food, health and a clean environment. All countries, particularly rich ones, now have to cut their emissions faster and phase out fossil fuels. Rich countries have to increase their financing to Global South countries to help them reduce emissions and protect their people from past and future harm. This is not a wish-list – it is international law.

We now have a powerful tool for holding countries to account for their obligations, especially in protecting the world’s most marginalised people and future generations of humanity. The ICJ rejected arguments by the likes of the US and UK that governments are bound only by climate treaties such as the Paris Agreement and did not have stronger obligations under international law. This ruling will inject new impetus into negotiations at the COP30 Summit in Brazil this November.”

Oxfam Aotearoa climate justice lead Nick Henry said:

“Today’s ruling is a stunning rebuke to the rich countries, including New Zealand, who are failing to stop harm to our climate. It is a victory for a people-powered campaign started by Pacific Island Students Fighting Climate Change, gaining support from Pacific leaders and allies around the world.

The New Zealand government provided early support to the campaign and co-sponsored the UN resolution that referred the case to the ICJ. But in its submissions to the court, New Zealand argued that human rights law is not relevant to climate change and that governments don’t have climate obligations beyond the existing Paris Agreement.

The world’s highest court has rejected the New Zealand government’s arguments and ruled that the international treaties on human rights and the environment create binding obligations to prevent harm to the climate.

This means that New Zealand must do more to reduce emissions and increase funding for climate action in the Pacific.”

Notes:

Oxfam has been supporting the Pacific Islands Students Fighting Climate Change’s lawsuit since 2022, joining in advocacy for the UN General Assembly to refer the case to the Court. Oxfam provided a written statement to the ICJ in March 2024 on human rights obligations beyond borders and what this means for climate action. Oxfam also contributed to an expert legal opinion that was referenced in several State submissions, the Maastricht Principles on the Human Rights of Future Generations.

MIL OSI New Zealand News –

July 24, 2025

MIL-OSI New Zealand: Greenpeace – World court’s climate ruling a legal warning shot for Luxon

Source: Greenpeace

Greenpeace Aotearoa says the world’s highest court has just delivered a wake-up call for Prime Minister Christopher Luxon.

In a historic climate ruling, the International Court of Justice (ICJ) has confirmed that governments have legal obligations to protect people – both now and in the future – from the worsening impacts of the climate crisis. That includes regulating big polluters like fossil fuel companies and intensive livestock operations.

“This is a warning shot to Luxon that his Government’s war on nature and the climate comes with consequences,” says Greenpeace spokesperson Amanda Larsson.

“The Court has made it clear: states must take action to prevent climate harm, no matter where it occurs. They must uphold people’s fundamental right to a clean, healthy and sustainable environment – for today’s communities and future generations.”

The ICJ ruling goes beyond the Paris Agreement, reinforcing that governments have a duty to regulate climate pollution, cooperate internationally, and prevent environmental harm. It strengthens the legal grounds for climate-impacted communities to hold governments accountable.

Since taking office, the Luxon Government has scrapped or weakened numerous key climate policies. It has:

Overturned the ban on offshore oil and gas exploration
Pledged to fast-track coal mining
Shelved agricultural emissions pricing
Exempted the country’s worst climate polluter – intensive dairying – from meaningful accountability

“Luxon is elevating the profits of polluters above people’s fundamental human rights,” says Larsson. “This ruling puts him – and governments like his – on notice.”

The dairy industry, led by Fonterra, is New Zealand’s largest climate polluter. Yet under pressure from lobby groups, the Government has rolled back environmental safeguards and is now considering weakening methane targets – despite clear advice from the Climate Change Commission that action on methane must be strengthened.

Earlier this year, Luxon received a letter authored by dozens of international climate scientists accusing him of ignoring scientific evidence on methane and urging him to follow the Climate Commission’s advice to strengthen New Zealand’s methane target. The letter was featured on the front page of the Financial Times.

“New Zealand is the world’s largest dairy exporter and a major player in the global livestock industry,” says Larsson.

“How New Zealand addresses livestock emissions sets an important precedent for the rest of the world. If Luxon guts the methane target, New Zealand risks breaching the Paris Agreement and, by extension, its trade agreements with partners like the UK and EU.”

The historic ICJ ruling is a result of action taken in 2019 by 27 law students from The University of the South Pacific. As the Pacific Islands Students Fighting Climate Change, they campaigned for the ICJ to issue an Advisory Opinion on the responsibilities of States in respect to climate change. The resolution, put forward by Vanuatu alongside a global alliance of States, passed the United Nations General Assembly unanimously in March 2023, co-sponsored by over 130 countries.

“As this ruling shows, the courts are becoming an increasingly important venue for climate justice – because governments like ours are failing to protect people and the planet. And when that happens, people will step up to defend their future.”

MIL OSI New Zealand News –

July 24, 2025

MIL-OSI USA: Middle East and North Africa Subcommittee Chairman Lawler Delivers Opening Remarks at Hearing on State Department Bureau of Counterterrorism

Source: US House Committee on Foreign Affairs

Media Contact 202-321-9747

WASHINGTON, D.C. – Today, House Foreign Affairs Middle East and North Africa Subcommittee Chairman Michael Lawler delivered opening remarks at a subcommittee hearing on the State Department’s Bureau of Counterterrorism FY26 Budget Posture.

Watch Here

-Remarks-

The subcommittee on the Middle East and North Africa will come to order. The purpose of this hearing is to assess the budgetary posture and strategic direction of the State Department’s Bureau of Counterterrorism for fiscal year 2026. I now recognize myself for an opening statement.

Today we convene to duck conduct oversight of the State Department’s Bureau of Counterterrorism and review its budgetary posture and strategic priorities for fiscal year 2026. I want to thank our witness acting coordinator for Counterterrorism, Gregory LoGerfo, for appearing before us today. The Bureau of Counterterrorism is a vital arm of America’s national security strategy. It plays a leading role in coordinating US counter-terrorism policy, engaging foreign partners to disrupt threats before they reach our shores, and supporting global efforts to confront terrorism in all its forms. From its role in special operations to diplomatic engagement to training programs, the bureau is on the front lines of protecting the American people. As terrorism threats are becoming more diffused, adaptive, and globally networked, we must ensure the Bureau is equipped to respond with agility, efficiency, and strategic foresight.

In the Middle East, this means confronting the malign influence of Iran backed proxy groups such as Hamas, Hezbollah, and the Houthis, while sustaining pressure on Isis whose presence in the region remains a serious concern. And it is with this background that we examine the Bureau of Counter Terrorism’s budget. During this hearing today, we will assess how the Bureau is delivering measurable security dividends for US taxpayers through its foreign assistance programming, particularly through its anti-terrorism assistance and the worldwide security program. We will also explore the extent to which the bureau’s budget requests will enable personnel to adapt to new geopolitical threats while maintaining coordination across the inter-agency and international partners. We must also consider whether the state department’s reorganization has impacted outcomes and how the bureau is responding to its expanded scope. We must determine if the State Department has the tools, authorities, and structure to preserve its capacity to respond to regional complexities. Finally, I want to emphasize that the effective counter-terrorism policy demands a strong partnership between Congress and the department that is granted in transparency, oversight, and shared strategic vision.

As we move toward reauthorization and review of the department’s fiscal year 2026 plan, this subcommittee is committed to ensuring that the Bureau of Counterterrorism has the resources and guidance it needs to remain a global leader in combating our world’s most dangerous threats. Mr. LoGerfo, we look forward to your testimony and to a robust discussion of how we can work together to safeguard the United States and our allies in an increasingly complex threat environment.

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MIL OSI USA News –

July 24, 2025

MIL-OSI Security: Billings man sentenced to 14 years in prison on drug and gun charges

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

BILLINGS – A Billings man who distributed drugs in the Billings area was sentenced today to 168 months in prison to be followed by 4 years of supervised release, U.S. Attorney Kurt Alme said.

Tirrell Lewis, 45, pleaded guilty in February 2025 to one count of possession with intent to distribute controlled substances and one count of prohibited person in possession of a firearm and ammunition.

U.S. District Judge Susan P. Watters presided.

The government alleged in court documents that on November 3, 2023, law enforcement officers received a call that there were two gunshots in the vicinity of a residential address and the caller saw a gray Mustang leave the area very quickly. Officers spoke to the Lewis’s girlfriend on scene, and she said the sounds were fireworks. She also said she and Lewis were in a relationship and he had not been present at her residence. She allowed officers to look in her backyard where they found two spent rifle casings.

The caller told police Lewis had been at the residence and he and his girlfriend were arguing before the two gunshots and then the caller saw Lewis leave in the gray Mustang.

Later that evening officers located the Mustang. They attempted to stop the vehicle, but it fled a short distance before stopping in front of Lewis’s girlfriend’s residence. Lewis got out of the car and fled on foot behind the residence. He circled the house and ran right into an officer who then arrested him. When Lewis was taken into custody, he was found to have $6,216.18 on his person.

On November 13, 2023, a search warrant was executed on the Mustang. Inside were 4 firearms, 91 rounds of assorted ammunition, 7 ounces of fentanyl, and 9 ounces of methamphetamine. The drugs were located in a backpack in the trunk. The fentanyl was in 3 bags inside. One contained 50 pills, one contained 1,003, and one contained 814. The methamphetamine was in two zip lock baggies next to a scale and 23 clean baggies. There was a paystub for Lewis and one of the handguns under the backpack.

Lewis is prohibited from possessing firearms due to a previous federal conviction.

Assistant U.S. Attorney Thomas Godfrey prosecuted the case. The investigation was conducted by the Billings Police Department, ATF, and DEA.

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

MIL Security OSI –

July 24, 2025

MIL-OSI Security: FEDERAL CHARGES FILED AGAINST PENSACOLA MAN FOR ARMED DRUG TRAFFICKING

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

PENSACOLA, FLORIDA – Carlton Shoemaker, 51, of Pensacola, Florida, has been indicted in federal court for three counts of possessing with the intent to distribute controlled substances, one count of possession of a firearm in furtherance of a drug trafficking offense, and one count of possession of a firearm by a convicted felon. John P. Heekin, United States Attorney for the Northern District of Florida announced the charge.

Shoemaker appeared before United States Magistrate Judge Zachary C. Bolitho at the United States Courthouse in Pensacola, Florida on July 22, 2025.

If convicted on all counts, Shoemaker faces up to life imprisonment.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Florida Department of Law Enforcement. The case is being prosecuted by Assistant United States Attorney Jessica S. Etherton.

An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.

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

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

MIL Security OSI –

July 24, 2025

MIL-OSI USA: 07.23.2025 Sens. Cruz, Cornyn, Rep. Jackson Introduce Bill Honoring Mayor Jerry H. Hodge

US Senate News:

Source: United States Senator for Texas Ted Cruz
WASHINGTON, D.C. – Today, U.S. Sens. Ted Cruz (R-Texas), John Cornyn (R-Texas), and Rep. Ronny Jackson (R-Texas-13) introduced a bill to rename the U.S. Post Office in Amarillo, Texas, as the Mayor Jerry H. Hodge Post Office Building to honor the life and legacy of Mayor Jerry Hodge.
Sen. Cruz said, “Mayor Hodge was a pillar of the Amarillo community and a true servant leader to the Panhandle. He transformed a local pharmacy into a national enterprise, served his community as the youngest mayor of Amarillo’s history, and was instrumental in establishing the Texas Tech University School of Veterinary Medicine. I am proud to introduce legislation to name the Amarillo post office in honor of his legacy.”
Sen. Cornyn said, “From helping to establish several institutions of higher education in Amarillo to leading the effort to bring a minor league baseball team to the city, Mayor Jerry Hodge was a cornerstone of the Amarillo community. I am proud to join Senator Cruz and Congressman Jackson in introducing legislation to rename Amarillo’s downtown post office after Mayor Hodge, which will ensure that future generations of Texans in the Panhandle can learn about his contributions and help preserve his life and legacy.”
Companion legislation was introduced in the House by Rep. Ronny Jackson (R-Texas-13).
Rep. Jackson said, “Jerry Hodge’s impact on Amarillo extended far beyond his titles. He was the youngest mayor in the city’s history, a successful businessman, and a proud rancher. Jerry’s personality was larger than life, and he worked tirelessly each day to make life better for the people of the Texas Panhandle. I’m proud to have called him a friend and am honored to introduce this piece of legislation to recognize his enduring legacy.”
Read the full text of the bill here.

MIL OSI USA News –

July 24, 2025

MIL-OSI USA: House Republicans Introduce Resolution Establishing New Select Subcommittee to Continue Investigation of the Events Surrounding January 6

Source: United States House of Representatives – Representative Mike Johnson (LA-04)

WASHINGTON — Chairman Barry Loudermilk (GA-11) today introduced a resolution establishing the new select subcommittee for the 119th Congress to continue Congress’ investigation into the events surrounding January 6, 2021.

Once the resolution is approved by the House, the work will be chaired by Rep. Loudermilk and exist as a Select Subcommittee of the House Judiciary Committee chaired by Rep. Jim Jordan (OH-4).

Speaker Johnson released the following statement:

“House Republicans are proud of our work so far in exposing the false narratives peddled by the politically motivated January 6 Select Committee during the 117th Congress, but there is clearly more work to be done. The resolution introduced today will establish this Select Subcommittee so we can continue our efforts to uncover the full truth that is owed to the American people. House Republicans remain intent on delivering the answers that House Democrats skipped over.”

Subcommittee Chairman Loudermilk released the following statement:

“I am honored to continue the investigation into the events surrounding January 6, 2021, and the failures that led to the breach of the U.S. Capitol. From my subcommittee investigation in the 118th Congress, we uncovered that what happened at the Capitol that day was the result of a series of intelligence, security, and leadership failures at multiple levels within numerous entities. While my subcommittee did an incredible job last Congress, there is still much work to be done. I appreciate Speaker Johnson entrusting me to continue this important investigation, and I look forward to working with Chairman Jordan and his team. It is vital that we continue to uncover the facts and begin the task of making needed reforms to ensure this level of security failure may never happen again.”

Chairman Jordan released the following statement:

“The partisan January 6 Committee failed to uncover crucial pieces of information for the American people, and Rep. Loudermilk has been the leader in getting to the bottom of the Democrat-run Committee’s failures. Rep. Loudermilk will continue to work tirelessly to get everyone the truth.”

The House will consider the resolution after Members return to Congress from the August District Work Period.

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MIL OSI USA News –

July 24, 2025

MIL-OSI USA: Chairman Smith Op-Ed: The One Big Beautiful Bill Act and Trump’s Trade Policy Will Do What ‘Bidenomics’ Never Could

Source: United States House of Representatives – Representative Mike Johnson (LA-04)

WASHINGTON — Today, Ways and Means Chairman Jason Smith published an op-ed in the Washington Examiner highlighting how the One Big Beautiful Bill and President Trump’s trade policy will do what ‘Bidenomics’ NEVER could.

“Democrats in Washington like to push a narrative that you cannot cut taxes and decrease the deficit. But economic growth fueled by The One Big Beautiful Bill Act, combined with common-sense government spending cuts and President Donald Trump’s successful America First trade policy, will prove them wrong once again,” Chairman Smith wrote.

Read Chairman Smith’s full op-ed in Washington Examiner here or below:

For four years, Democrats in Washington pushed a reckless tax-and-spend agenda known as “Bidenomics” that blew a hole in the U.S.’s national debt. More than $10 trillion later, and along with 20% inflation that federal spending created, our nation is at a fiscal crossroads. The status quo is not acceptable or sustainable.

Democrats in Washington like to push a narrative that you cannot cut taxes and decrease the deficit. But economic growth fueled by The One Big Beautiful Bill Act, combined with common-sense government spending cuts and President Donald Trump’s successful America First trade policy, will prove them wrong once again.

In fact, it is already happening. June saw the first federal budget surplus in more than nine years, with revenues exceeding spending by $26 billion, thanks to a windfall of $18 billion in new tariff revenue. While deficits are likely to continue in the near term, this is a start in the right direction.

The myth that you cannot cut taxes and restore fiscal sanity depends on dismissing the tax incentives in the One Big Beautiful Bill Act that will drive investment, create jobs, and grow our economy. The simple truth: They will, and they have before.

Even though the 50-year historic average GDP growth is over 2.7%, the “nonpartisan” Congressional Budget Office forecasts economic growth will be just 1.8% in the coming years, and the projected deficit impact of the “big, beautiful bill” based on that growth would be $3.3 trillion over ten years. However, if our nation’s economic growth rises just 0.1% above the historic average and clocks in at 2.8%, federal deficits will actually be reduced by over half a trillion dollars.

Is this possible? We know it is because in the years following the passage of Trump’s 2017 tax cuts, the United States’s economy grew by 2.8%. It can and will happen again.

Increased federal revenues driven by economic growth are just one piece of the equation. Trump’s successful America First trade policy is not only forcing our trading partners to the table to deliver better deals for American manufacturers and farmers, but it is also providing tens of billions of dollars for deficit reduction each month.

Even the CBO predicts that the new tariff policies will generate $2.5 trillion in new revenue for the federal government over the next 10 years. That is no small sum.

Putting direct tariff revenue aside, as countries come to the table and more markets open for American producers, our economic growth will accelerate further. The One Big Beautiful Bill Act and America First trade policies will turbocharge our entrepreneurs to produce more, hire more, and invest more here at home. This will only boost revenues flowing into the federal government further.

While economic growth and tariffs are part of the solution, Congress must be forced to address the elephant in the room: federal spending. The One Big Beautiful Bill Act took a massive turn down the correct path by cutting over $1.5 trillion in mandatory spending — the most in American history.

Complacency and lax oversight for years have allowed spending to explode, mostly in our nation’s social safety net programs. Fraud and abuse were allowed to run rampant, putting these programs at risk for the people who truly rely on them.

Through common-sense reforms such as work requirements, which more than 80% of the public supports, the One Big Beautiful Bill Act has eliminated wasteful spending and protected these programs for future generations. But more must be done.

Economic growth and tariff revenue alone will not save us, but they are certainly a start. Congress must make responsible decisions in the years to come to prevent saddling the next generation with even more crippling debt and economic decline.

Addressing our nation’s debt crisis will require a multifaceted, holistic approach, but Republicans are already taking America down the right track.

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MIL OSI USA News –

July 24, 2025

MIL-OSI USA: Crapo, Blumenthal, Warren File Major Richard Star Act as Amendment to Must-Pass Defense Bill

US Senate News:

Source: United States Senator for Idaho Mike Crapo

Washington, D.C.–U.S. Senators Mike Crapo (R-Idaho), Richard Blumenthal (D-Connecticut) and Elizabeth Warren (D-Massachusetts) announced they are filing the Major Richard Star Act as an amendment to the annual must-pass defense bill, the National Defense Authorization Act (NDAA).

Currently, only veterans with disability ratings above 50 percent and more than 20 years of service are eligible to receive the full amount of their U.S. Department of Defense (DOD) retirement and U.S. Department of Veterans Affairs (VA) disability payments–leaving behind more than 50,000 combat-injured military retirees. If adopted, the Senators’ Major Richard Star Act will fix this unjust policy for medical retirees with a combat-related disability—providing them their full VA disability and DOD retirement payments.

“The Major Richard Star Act corrects a severe injustice for combat-wounded veterans,” said Senator Crapo. “The support for this correction is clear. Though the namesake of our legislation is no longer with us, we must pass this fix on behalf of the more than 50,000 veterans, including hundreds in Idaho, who stand to benefit.”

“The Major Richard Star Act would correct one of the deepest injustices in our present veterans’ disability system. As an amendment to the NDAA, it would enable tens of thousands of combat-injured veterans to collect the full benefits they’ve earned,” said Senator Blumenthal. “Right now they’re denied fair, complete compensation because they are subject to a dollar-for-dollar offset of their VA disability and military retirement benefits. It’s unacceptable–and I’m joining my colleagues from both sides of the aisle to right this wrong by seeking to attach our legislation to this year’s NDAA. With more than 31 cosponsors, adopting our amendment is a commonsense next step to finally provide these military retirees who already sacrificed so much the benefits they need and earned.”

“Our veterans put their lives on the line for this country, and it’s time our government gives them the full benefits they’ve earned,” said Senator Warren. “Including this bill in the NDAA will ensure the federal government keeps its promise to our veterans.”

This bipartisan legislation is named in honor of Major Richard A. Star, a decorated war veteran who was forced to medically retire due to his combat-related injuries. Major Star sadly lost his battle with cancer on February 13, 2021.

The Senators’ legislation has 76 bipartisan cosponsors, and is supported by the following military, veterans and survivor organizations: Air Force Sergeants Association (AFSA), Air & Space Forces Association (AFA), American GI Forum, The American Legion, American Logistics Association, American Military Society, American Veterans (AMVETS), America’s Warrior Partnership, American WWII Orphans Network, Armed Forces Retiree Association, Army Aviation Association of America (AAAA), Association of Military Surgeons of the United States (AMSUS), Association of the United States Army (AUSA), Association of the United States Navy (AUSN), Blinded Veterans Association (BVA), Blue Star Families, Burn Pits 360, Catholic War Veterans of the USA & Auxiliary, Chief Warrant Officers Association of the US Coast Guard (CWOA), Code of Support Foundation, Commissioned Officers Association of the U.S. Public Health Service, Inc. (COA), Disabled American Veterans (DAV), Dixon Center for Military and Veterans Services, Enlisted Association of the National Guard of the United States, Fleet Reserve Association (FRA), Gold Star Spouses of America, Grunt Style Foundation, Gold Star Wives of America (GSW), Healing Household, Heroes Athletic Association, Hire Heroes USA, HunterSeven Foundation, Japanese American Veterans Association, Iraq and Afghanistan Veterans of America (IAVA), Jewish War Veterans of the United States of America (JWV), K9s for Warriors, Marine Corps League (MCL), Marine Corps Reserve Association (MCRA), Military Chaplains Association of the United States of America (MCA), Military Family Advisory Network, Military Officers Association of America (MOAA), Military Order of the World Wars, Military Order of the Purple Heart (MOPH), Mission Roll Call, National Association of State Directors of Veterans Affairs (NASDVA), National Defense Committee, National Guard Association of the United States, National Military Family Association (NMFA), Naval Enlisted Reserve Association (NERA), Non Commissioned Officers Association (NCOA), Operation First Response, Paralyzed Veterans of America (PVA), Project Sanctuary, The Ranger Leadership and Policy Center, Quality of Life Foundation, Reserve Organization of America (ROA), Sea Service Family Foundation, Stronghold Freedom Foundation, Student Veterans of America, TBI Warrior Foundation, Tragedy Assistance Program for Survivors (TAPS), The Retired Enlisted Association (TREA), The Independence Fund (TIF), United States Army Warrant Officers Association (USAWOA), United States Coast Guard Chief Petty Officers Association (USCG CPOA), United Through Reading, VetsFirst/United Spinal Association, Veterans of Foreign Wars (VFW), Vietnam Veterans of America (VVA), Wounded Paw Project and Wounded Warrior Project (WWP).

MIL OSI USA News –

July 24, 2025

MIL-OSI United Nations: UN condemns deadly Russian strikes on Ukrainian capital as civilian toll mounts

Source: United Nations 2-b

According to the UN Human Rights Monitoring Mission in Ukraine (HRMMU), more than 30 locations across seven districts of Kyiv were struck in what it described as “the deadliest attack” on the Ukrainian capital in nearly a year.

“Last night’s attack exemplifies the grave threat posed by the tactic of deploying missiles and large numbers of drones simultaneously into populated areas,” said Danielle Bell, Head of HRMMU.

Humanitarian Coordinator for Ukraine, Matthias Schmale, also strongly condemned the attacks, which extended to Odesa, Zaporizhzhia and other areas.

“The people of Ukraine should not have to take cover in shelters night after night,” he said. “Each day, the war takes a devastating toll on civilians.”

In the southern port city of Odesa, strikes reportedly injured several civilians and damaged a kindergarten and a centre for children with special needs – places where children should feel safe. In Zaporizhzhia, residential buildings were hit.

First responders and humanitarian agencies are already on the ground, providing emergency care and supplies while assessing further needs.

Human toll rising

The barrage included 440 long-range drones and 32 missiles launched by Russian forces, HRMMU noted in a news release citing information from Ukrainian authorities, of which 175 drones and 14 missiles targeted Kyiv.

It marked the fourth time this month that more than 400 munitions were fired in a single night – far surpassing the 544 total launched during the entire month of June 2024.

Even before this latest attack, the human toll of such tactics had been rising sharply. HRMMU had already verified at least 29 civilian deaths and 126 injuries from long-range weapons in June alone.

The overall civilian casualty count in the first five months of 2025 is nearly 50 per cent higher than in the same period last year.

Mr. Schmale reiterated that attacks on civilians and civilian infrastructure are prohibited under international humanitarian law.

“Civilians, including children, must never be a target,” he said. “We must not normalize the war.”

Refugee crisis deepens

Meanwhile, the broader humanitarian crisis continues to deepen. The intense conflict, now in its third year since Russia’s full-scale invasion, has driven more than 6.3 million Ukrainians to seek refuge across Europe.

Most are women, children, and older persons, many of whom rely on temporary protection directives extended by host countries like the European Union (EU) and Moldova, according to a report released on Tuesday by Office of the UN High Commissioner for Refugees (UNHCR).

Noting the volatile situation in Ukraine, the agency urged the respective governments to maintain legal status for refugees until conditions allow for safe, dignified, and sustainable returns.

MIL OSI United Nations News –

July 24, 2025

MIL-OSI United Nations: Haitian capital ‘paralysed and isolated’ by gang violence, Security Council hears

Source: United Nations 2-b

Since January, the UN Integrated Office in Haiti (BINUH), recorded over 4,000 individuals deliberately killed – a 24 per cent increase compared to the same period in 2024.

“The capital city was for all intents and purposes paralysed by gangs and isolated due to the ongoing suspension of international commercial flights into the international airport,” Miroslav Jenča, Assistant Secretary-General for the Americas at the department of political affairs (DPPA), told ambassadors in the Security Council on Wednesday.

Having visited the country recently, he warned that, gangs have only “strengthened their foothold”, which now affects all communes of the Port-au-Prince metropolitan area and beyond, “pushing the situation closer to the brink.”

He called on the international community to act decisively and urgently or the “total collapse of state presence in the capital could become a very real scenario”.

Gang control expands

Ghada Fathi Waly, Executive Director of the UN Office on Drugs and Crime (UNODC), echoed that warning.

“As gang control expands, the state’s capacity to govern is rapidly shrinking, with social, economic and security implications,” she told ambassadors, briefing remotely from Vienna.

“This erosion of state legitimacy has cascading effects,” she said, with legal commerce becoming paralysed as gangs control major trade routes, such conditions worsening “already dire levels of food insecurity and humanitarian need,” she added.

Rise of ‘vigilante’ groups

Amidst increasing public frustration with the limited protection capacity of the state, “vigilante” or self-defence groups are now gaining in popular appeal.

Although some are motivated by the urgent need to protect their communities, many operate outside existing legal frameworks, in some cases, engaging in extrajudicial actions and colluding with gangs.

The rise of these actors is pushing demand for guns and military-grade weapons, “fuelling illicit arms markets and raising the risk of licit weapons being diverted to criminal elements,” Ms. Waly said.

Human trafficking

Meanwhile, the broader deterioration of the security and economic situation in the capital and the rest of the country continues to fuel a sharper escalation in human rights violations.

Despite persistent under-reporting of sexual violence due to fear of reprisals, social stigma and lack of trust in institutions, BINUH reported an increase in sexual violence committed by gangs in the past three months.

In May, Haitian police raided a medical facility in Pétion-Ville suspected of being involved in illicit organ trade, as allegations of trafficking in persons for the purpose of organ removal are now arising.

As the situation in Haiti remains desperate, “there is not a moment to lose,” Mr. Jenča urged.

MIL OSI United Nations News –

July 24, 2025

MIL-OSI Canada: Taking action to improve classroom safety | Passer à l’action pour améliorer la sécurité dans les salles de classe

Members of the Aggression and Complexity in Schools Action Team

The Aggression and Complexity in Schools Action Team held its first meeting on July 23, bringing together teachers, school leaders, school board trustees and other front-line professionals with classroom experience to help address the growing challenges in Alberta’s classrooms.

The 25-member action team includes teachers, school administrators and support staff who have direct experience working with students every day and understand the complexities of today’s learning environments.

“The action team’s insights will be key to finding practical solutions that reduce aggression, manage classroom complexity and improve safety and support for students and staff. I look forward to building on their input to make classrooms safer and strengthen Alberta’s education system.”

Demetrios Nicolaides, Minister of Education and Childcare

The action team’s mandate is to provide advice and recommendations to Alberta’s government on how to:

reduce incidents of aggression in schools
address increasing classroom complexity
improve safety and support for students and school staff

Over the coming months, the team will examine policies, teacher training, inclusive education supports, funding considerations and coordination across sectors. To inform this work, they may invite front-line professionals to share insights as subject matter experts. The team’s recommendations will focus on both immediate and long-term strategies to better support classrooms across Alberta.

“CASS welcomes the formation of this action team and appreciates the government’s commitment to listening to the voices of those working directly with students. Superintendents across Alberta are eager to support practical, evidence-informed strategies that enhance safety, reduce classroom complexity, and promote the well-being of both staff and students.”

Mike McMann, president, College of Alberta School Superintendents

“Alberta’s locally elected school boards remain deeply committed to safe, supportive and effective learning environments for all students and staff. Alberta School Boards Association looks forward to collaborating, sharing insights and perspectives to support the diverse needs of students and school communities across the province.”

Marilyn Dennis, president, Alberta School Boards Association

Alberta’s government is committed to ensuring these decisions are informed by the real-world experience of educators and other professionals who work directly with students. Practical supports and interventions stemming from the action team’s work are expected to begin rolling out as early as the 2025-26 school year.

Quick facts

The action team will meet at least four times between July and September.
A final report with recommendations will be submitted to the Minister of Education and Childcare by Sept. 30.

Related information

M.O. 031/2025 – Education and Childcare
Aggression and Complexity in Schools Action Team

Related news

Addressing classroom aggression and complexity (June 30, 2025)

Le gouvernement de l’Alberta travaille avec des experts de première ligne pour rendre les salles de classe plus sécuritaires pour les élèves et les enseignants.

L’équipe Aggression and Complexity in Schools Action Team a tenu sa première réunion le 23 juillet, rassemblant des enseignants, des leadeurs scolaires, des conseillers scolaires et d’autres professionnels de première ligne possédant une expérience en salle de classe, afin d’aider à relever les défis croissants rencontrés dans les salles de classe de l’Alberta.

Parmi les 25 membres de cette équipe, on retrouve des enseignants, des administrateurs scolaires et du personnel de soutien qui ont déjà travaillé directement avec les élèves au quotidien et qui comprennent la complexité des environnements d’apprentissage d’aujourd’hui.

« Les réflexions de cette équipe d’experts seront essentielles pour trouver des solutions pratiques permettant de réduire les cas de violence, de faire face à la complexité des besoins en salle de classe, d’améliorer la sécurité des élèves et du personnel et de mieux les soutenir. Je compte mettre à profit leur travail pour rendre les salles de classe plus sécuritaires et pour renforcer le système d’éducation de l’Alberta. »

Demetrios Nicolaides, ministre de l’Éducation et de la Garde d’enfants

Le mandat de l’équipe est de fournir des conseils et des recommandations au gouvernement de l’Alberta sur la façon :

de réduire le nombre de cas de violence dans les écoles;
de faire face à la complexité croissante des besoins en salle de classe;
d’améliorer la sécurité des élèves et du personnel scolaire et de mieux les soutenir.

Au cours des prochains mois, l’équipe se penchera sur les politiques, la formation des enseignants, les mesures de soutien à l’éducation inclusive, le financement et la coordination intersectorielle. Pour orienter ce travail, l’équipe pourra inviter des professionnels de première ligne à partager leurs perspectives à titre d’experts en la matière. L’équipe recommandera des stratégies immédiates et à long terme afin de mieux soutenir les salles de classe de l’Alberta.

« CASS salue la création de cette équipe d’action, ainsi que l’engagement du gouvernement d’écouter les personnes qui travaillent directement avec les élèves. Les directions générales de toute l’Alberta sont prêtes à mettre en place des stratégies pratiques et fondées sur des données probantes qui améliorent la sécurité, réduisent la complexité des classes et favorisent le bienêtre du personnel et des élèves. »

Mike McMann, président, College of Alberta School Superintendents

« Les conseils scolaires élus localement de l’Alberta restent profondément engagés à fournir des environnements d’apprentissage sécuritaires, bienveillants et efficaces pour tous les élèves et le personnel. L’Alberta School Boards Association se réjouit à l’idée de collaborer en partageant ses réflexions et ses perspectives afin de répondre aux divers besoins des élèves et des communautés scolaires de la province. »

Marilyn Dennis, présidente, Alberta School Boards Association

Le gouvernement de l’Alberta est résolu à ce que ces décisions se fondent sur l’expérience pratique des éducateurs et des autres professionnels qui travaillent directement avec les élèves. Certaines mesures de soutien et interventions concrètes découlant du travail de cette équipe devraient être mises en place dès l’année scolaire 2025-2026.

En bref

L’équipe Aggression and Complexity in Classrooms Action Team se réunira au moins à quatre reprises entre juillet et septembre 2025.
Un rapport final contenant des recommandations sera remis au ministre de l’Éducation et de la Garde d’enfants d’ici le 30 septembre 2025.

Renseignements connexes (en anglais seulement)

M.O. 031/2025 – Education and Childcare
Aggression and Complexity in Schools Action Team

Nouvelles connexes

Faire face aux comportements violents et à la complexité des besoins en salle de classe (30 juin 2025)

MIL OSI Canada News –

July 24, 2025

MIL-OSI USA: H.R. 1442, Youth Poisoning Protection Act

Source: US Congressional Budget Office

H.R. 1442 would ban the sale of products containing 10 percent or more by weight of sodium nitrite that are covered under the Consumer Product Safety Act. The ban would not apply to commercial or industrial products not ordinarily intended for consumer use or consumption.

Using information from the Consumer Product Safety Commission, CBO estimates that implementing and enforcing the ban under H.R. 1442 would cost $2 million over the 2025-2030 period; any related spending would be subject to the availability of appropriated funds.

H.R. 1442 would impose a private-sector mandate as defined in the Unfunded Mandates Reform Act (UMRA) by banning the sale of consumer products containing 10 percent or more by weight of sodium nitrite. Because only a small consumer market exists for such products and some states already have curtailed their sale, CBO estimates that the cost of the mandate would not exceed the private-sector threshold established in UMRA ($206 million in 2025, adjusted annually for inflation).

The legislation would not impose any intergovernmental mandates as defined in UMRA.

The CBO staff contacts for this estimate are Cyrus Ekland (for federal costs) and Andrew Laughlin (for mandates). The estimate was reviewed by Emily Stern, Senior Adviser for Budget Analysis.

Phillip L. Swagel

Director, Congressional Budget Office

MIL OSI USA News –

July 24, 2025

MIL-OSI USA: First Teen Tech Council for New York

Source: US State of New York

overnor Kathy Hochul and Secretary Hillary Rodham Clinton today announced the launch of the New York School (NYS) x #HalfTheStory Teen Tech Council, a groundbreaking statewide initiative placing teens at the forefront of educational innovation. This new advisory group will empower students to lead the conversation on digital wellness and support phone-free learning environments across New York State as schools across the state prepare to implement Governor Hochul’s nation-leading distraction-free learning law for the 2025-2026 school year

“Launching the Teen Tech Council will help make sure New York’s Distraction-Free Schools is successfully implemented,” Governor Hochul said. “I’m fired up to be working with #HalfTheStory, the Clinton Foundation, and all of you with you to usher in a generational shift — bringing back meaningful interactions during such formative years and securing a healthier future.”

Secretary Hillary Rodham Clinton said, “Here at the Clinton Foundation, we’re guided by our belief that putting people first — putting people’s concerns, needs and hopes first — is essential to creating a better world. That starts with you. As the largest state to adopt a phone-free policy in schools, New York has the opportunity to show the rest of the country what we can accomplish when we combine the capacity of government and nonprofits with the energy of smart young leaders.

#HalfTheStory Founder and Executive Director Larissa May said, “Teens are often left out of the conversation when it comes to the policies that shape their lives, and in this case, teens are the missing piece of the bell-to-bell movement. #HalfTheStory is committed to identifying the next generation of digital activists and powering the movement from the bottom up. We’re training these future leaders at scale to make NYC the model for the world—in and outside the classroom—to support student wellbeing and digital citizenship. Teen work makes the dream work.”

The inaugural Teen Tech Council Board Meeting was held on July 22, 2025, in New York City. Co-hosted by the Governor’s Office and the Clinton Foundation in partnership with #HalfTheStory — a nonprofit committed to strengthening young people’s relationship with technology — the event marks a pivotal step in reimagining how students engage with tech in and out of the classroom.

As an extension of #HalfTheStory’s Civics Academy, an annual summer program for teens that aims to educate and empower today’s youth to learn effective activism, storytelling, and leadership techniques essential for driving global and local change, the Teen Tech Council is launching as a scaled state initiative, with teens from across New York joining from their districts. Students will be nominated by teachers and peers to help schools successfully implement bell-to-bell policies and create a shared culture of digital wellness — one that extends beyond the classroom into play, connection, and creativity.

Teens can apply now to join NYS x #HalfTheStory Teen Tech Council — or teachers can nominate a star student to help shape the future at: halfthestoryproject.com/teen-tech-council.

The launch of the council underscores Governor Hochul’s continued commitment to working with young people to ensure an equitable and successful rollout of a distraction-free environment in schools statewide. The Distraction-Free Schools law signed by Governor Hochul requires bell-to-bell smartphone restrictions in K-12 school districts statewide, starting this fall for the 2025-2026 school year. This law is part of Governor Hochul’s nation-leading commitment to protecting youth mental health and promoting student success in the digital age, following her action last year to win a first-in-the-nation law to restrict addictive social media feeds for minors.

In accordance with the Distraction Free Learning Law, public school districts statewide must finalize and publish their distraction-free policy by August 1. The Governor also recently launched a website with a policy FAQ, toolkit and other key information about the State law as a resource for districts as they finalize their policy. The Governor also recently highlighted that nearly 150 school districts across New York have already submitted their distraction-free policy.

Governor Hochul’s bell-to-bell policy creates a statewide standard for distraction-free schools in New York including:

Prohibits unsanctioned use of smartphones and other internet-enabled personal devices on school grounds in K-12 schools for the entire school day (from “bell to bell”), including classroom time and other settings like lunch and study hall periods
Allows schools to develop their own plans for storing smartphones during the day — giving administrators and teachers the flexibility to do what works best for their buildings and students
Secures $13.5 million in funding to be made available for schools that need assistance in purchasing storage solutions to help them go distraction-free
Requires schools to give parents a way to contact their kids during the day when necessary
Requires teachers, parents and students to be consulted in developing the local policy
Prevents inequitable discipline

Governor Hochul’s policy allows authorized access to simple cellphones without internet capability, as well as internet-enabled devices officially provided by their school for classroom instruction, such as laptops or tablets used as part of lesson plans.

Additionally, the Governor’s policy includes several exemptions to smartphone restrictions, including for students who require access to an internet-enabled device to manage a medical condition, where required by a student’s Individualized Education Program (IEP), for academic purposes or for other legitimate purposes, such as translation, family caregiving and emergencies.

MIL OSI USA News –

July 24, 2025

MIL-OSI USA: Governor Stein Tours Coca-Cola Consolidated Facility, Meets with Apprenticeship Students

Source: US State of North Carolina

Headline: Governor Stein Tours Coca-Cola Consolidated Facility, Meets with Apprenticeship Students

Governor Stein Tours Coca-Cola Consolidated Facility, Meets with Apprenticeship Students
lsaito
Wed, 07/23/2025 – 17:03

Raleigh, NC

Today, Governor Josh Stein toured the Coca-Cola Consolidated facility in Charlotte and met with Coca-Cola Consolidated leadership and students in its apprenticeship program. Through a partnership with Central Piedmont Community College, the nation’s largest Coca-Cola bottler is preparing students for high-demand positions in manufacturing, equipment repair, and logistics.

“Every North Carolinian deserves a shot at a brighter future and that shouldn’t necessarily require a traditional four-year degree,” said Governor Josh Stein. “Opportunities like Coca-Cola Consolidated’s apprenticeship program allow students to pursue their interests in high-demand fields and set them up for success in the job market.”

This month, CNBC named North Carolina as the top state for business, citing the state’s workforce as one of its biggest strengths. Established in Executive Order No. 11 on March 25, 2025, the Governor’s Council on Workforce and Apprenticeships recently shared its first report, outlining goals to expand access to good jobs, including by investing in statewide apprenticeship and technical education programs, engaging with employers to identify and address industry needs, and ensuring that every student in North Carolina has a post-secondary pathway to employment, education, or enlistment in the military. On July 1, 2025, Stein also signed into law Senate Bill 124, which reduces the number of state government jobs that require a four-year college degree.

Governor Stein believes every North Carolinian should have the opportunity to achieve success – no matter their background. Since taking office, Governor Stein has announced more than more than $18 billion in investments and more than 24,000 new jobs coming to North Carolina.

Jul 23, 2025

MIL OSI USA News –

July 24, 2025

MIL-OSI: CVB Financial Corp. Reports Earnings for the Second Quarter 2025

Source: GlobeNewswire (MIL-OSI)

Second Quarter 2025

Net Earnings of $50.6 million, or $0.36 per share
Return on Average Assets of 1.34%
Efficiency Ratio of 45.6%
Net Interest Margin of 3.31%

Ontario, CA, July 23, 2025 (GLOBE NEWSWIRE) — CVB Financial Corp. (NASDAQ:CVBF) and its subsidiary, Citizens Business Bank (the “Company”), announced earnings for the quarter ended June 30, 2025.

CVB Financial Corp. reported net income of $50.6 million for the quarter ended June 30, 2025, compared with $51.1 million for the first quarter of 2025 and $50.0 million for the second quarter of 2024. Diluted earnings per share were $0.36 for the second quarter, compared to $0.36 for the prior quarter and $0.36 for the same period last year.

For the second quarter of 2025, annualized return on average equity (“ROAE”) was 9.06%, annualized return on average tangible common equity (“ROATCE”) was 14.08%, and annualized return on average assets (“ROAA”) was 1.34%.

David Brager, President and Chief Executive Officer of Citizens Business Bank, commented, “Citizens Business Bank’s performance in the second quarter demonstrates our continued financial strength and focus on our vision of serving the comprehensive financial needs of small to medium sized businesses and their owners. Our consistent financial performance is highlighted by our 193 consecutive quarters, or more than 48 years, of profitability, and our 143 consecutive quarters of paying cash dividends. I would like to thank our customers and associates for their continuing commitment and loyalty.”

Additional Highlights for the Second Quarter of 2025

Pre-provision / pretax income increased from $67.5 million in the first quarter of 2025 to $68.8 million
Cost of funds decreased to 1.03% from 1.04% in the first quarter of 2025
Deposits and customer repos grew by $123 million from the end of the first quarter of 2025
Loans decreased by $5 million from the end of the first quarter 2025
TCE Ratio of 10.0% & CET1 Ratio of 16.5%

INCOME STATEMENT HIGHLIGHTS

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
	(Dollars in thousands, except per share amounts)
Net interest income	$	111,608		$	110,444		$	110,849		$	222,052		$	223,310
Recapture of (provision for) credit losses		–			2,000			–			2,000			–
Noninterest income		14,744			16,229			14,424			30,973			28,537
Noninterest expense		(57,557	)		(59,144	)		(56,497	)		(116,701	)		(116,268	)
Income taxes		(18,231	)		(18,425	)		(18,741	)		(36,656	)		(36,945	)
Net earnings	$	50,564		$	51,104		$	50,035		$	101,668		$	98,634
Earnings per common share:
Basic	$	0.36		$	0.37		$	0.36		$	0.72		$	0.71
Diluted	$	0.36		$	0.36		$	0.36		$	0.72		$	0.71

NIM		3.31	%		3.31	%		3.05	%		3.31	%		3.07	%
ROAA		1.34	%		1.37	%		1.24	%		1.35	%		1.22	%
ROAE		9.06	%		9.31	%		9.57	%		9.18	%		9.44	%
ROATCE		14.08	%		14.51	%		15.51	%		14.29	%		15.32	%
Efficiency ratio		45.55	%		46.69	%		45.10	%		46.12	%		46.17	%

Net Interest Income
Net interest income was $111.6 million for the second quarter of 2025, representing a $1.2 million, or 1.1%, increase from the first quarter of 2025, and a $0.8 million, or 0.7%, increase from the second quarter of 2024. Interest income increased by $1.2 million, or 0.84%, from the first quarter, while interest expense remained the same at $32.6 million in the second quarter of 2025.

The increase in net interest income of $0.8 million, or 0.7%, compared to the second quarter of 2024 was the net result of a $15.6 million decline in interest expense, that exceeded the $14.9 million decline in interest income. The decrease in interest expense was the result of a $1.19 billion decrease in average interest-bearing liabilities compared to the second quarter of 2024. The decline in interest-bearing liabilities was driven by a decrease in borrowings that resulted from the early redemptions of Bank Term Funding Program (“BTFP”) advances in the third quarter of 2024. The decrease in interest income was the result of a $1.11 billion decrease in average interest-earning assets, that coincided with the Company’s deleveraging strategy in the second half of 2024 resulting in the Company’s borrowings declining by $1.34 billion.

Net Interest Margin
Our tax equivalent net interest margin was 3.31% for the second quarter of 2025, compared to 3.31% for the first quarter of 2025 and 3.05% for the second quarter of 2024. The yield on our interest-earning assets for the second quarter of 2025 remained unchanged, at 4.28%, compared to the prior quarter, while our cost of funds decreased slightly to 1.03% for the second quarter of 2025, from 1.04% in the prior quarter. Loan yields remained unchanged for the second quarter of 2025 at 5.22%. The slight decrease in our cost of funds was primarily due to a two-basis point decrease in our cost of deposits, from .86% to .84%. The decrease in cost of deposits was partially offset by an increase in the average balance and cost of customer repurchase agreements. For the second quarter of 2025 average customer repurchase agreements were $376.6 million at a cost of 1.66%, compared to $317.3 million and 1.24% for the prior quarter.

Net interest margin for the second quarter of 2025 increased by 26-basis points compared to the second quarter of 2024, primarily as a result of 35-basis point decrease in cost of funds, to 1.03% for the second quarter of 2025, from 1.38% in the same quarter of last year. The decrease in cost of funds was primarily due to a $1.34 billion decline in average borrowings, which had an average cost of 4.79% in the second quarter of 2024. For the second quarter of 2025, the Company had average deposits and customer repurchase agreements of $12.18 billion, at an average cost of 0.87%, and average borrowings of $508.2 million, at an average cost of 4.61%, compared to the second quarter of 2024 in which borrowings averaged $1.85 billion, at an average cost of 4.79%, and average deposits and customer repurchase agreements of $12.17 billion had an average cost of 0.87%. The decrease in cost of funds, exceeded the modest decrease in interest earning asset yields from 4.37% for the second quarter of 2024 to 4.28% in the second quarter of 2025. The decrease in earning asset yields was impacted by a decrease in loan yields from 5.26% for the second quarter of 2024 to 5.22% for the second quarter of 2025, and a decrease in investment securities yields to 2.62% in the second quarter of 2025, from 2.71% for the second quarter of 2024. The decrease in investment yields was primarily the result of a $2.8 million decrease in the positive interest spread on pay-fixed swaps.

Earning Assets and Deposits
Average earning assets increased by $1.7 million compared to the first quarter of 2025 and declined by $1.12 billion when compared to the second quarter of 2024. The average balance in funds held at the Federal Reserve increased by $170.5 million in the second quarter of 2025 compared to the first quarter of 2025, while average loans decreased by $112.6 million and average investment securities decreased by $61.3 for the same period. Compared to the second quarter of 2024, the decrease in average earning assets was due to decreases of $376.7 million in average loans, $359.5 million in average investment securities, and $372.1 million in funds held at the Federal Reserve. The average balance on noninterest-bearing deposits increased by $45.3 million, or 0.65%, from the first quarter of 2025 and the average balance on interest-bearing deposits and customer repurchase agreements decreased by $51.2 million from the same period. Compared to the second quarter of 2024, the average balance on total deposits and customer repurchase agreements increased by $14.9 million, or 0.12%. On average, noninterest-bearing deposits were 60.47% of total deposits during the most recent quarter, compared to 59.92% for the first quarter of 2025 and 60.13% for the second quarter of 2024.

SELECTED FINANCIAL HIGHLIGHTS	Three Months Ended
	June 30, 2025					March 31, 2025					June 30, 2024
	(Dollars in thousands)
Yield on average investment securities (TE)	2.62%					2.63%					2.71%
Yield on average loans	5.22%					5.22%					5.26%
Yield on average earning assets (TE)	4.28%					4.28%					4.37%
Cost of deposits	0.84%					0.86%					0.88%
Cost of funds	1.03%					1.04%					1.38%
Net interest margin (TE)	3.31%					3.31%					3.05%

*Average Earning Asset Mix*	Avg		% of Total			Avg		% of Total			Avg		% of Total
Total investment securities	$	4,847,415		35.75	%	$	4,908,718		36.21	%	$	5,206,959		35.49	%
Interest-earning deposits with other institutions		337,929		2.49	%		162,389		1.20	%		716,916		4.89	%
Loans		8,354,898		61.63	%		8,467,465		62.46	%		8,731,587		59.51	%
Total interest-earning assets		13,558,254					13,556,584					14,673,474

Provision for Credit Losses
There was no provision for credit losses in the second quarter of 2025, compared to a $2.0 million recapture of provision for credit losses in the first quarter of 2025 and no provision in the second quarter of 2024. Net charge-offs for the second quarter of 2025 were $249,000 compared to net recoveries of $130,000 in the prior quarter. Allowance for credit losses represented 0.93% of gross loans at June 30, 2025 compared to 0.94% at March 31, 2025.

Noninterest Income
Noninterest income was $14.7 million for the second quarter of 2025, compared with $16.2 million for the first quarter of 2025 and $14.4 million for the second quarter of 2024. Noninterest income decreased in the second quarter of 2025 compared to the first quarter primarily due to a $2.2 million gain recognized during the first quarter of 2025 on the sale of four OREO properties. Excluding gains, noninterest income grew by approximately $700,000, including a $397,000 increase of income from Bank Owned Life Insurance (“BOLI”). BOLI income also increased in the second quarter of 2025 compared to the second quarter of 2024 by $285,000. Compared to the first quarter of 2025, Trust and investment services income grew by $304,000, or 8.9%, while growing by $287,000, or 8.4% over the second quarter of 2024.

Noninterest Expense
Noninterest expense for the second quarter of 2025 was $57.6 million, compared to $59.1 million for the first quarter of 2025 and $56.5 million for the second quarter of 2024. Noninterest expense decreased in the second quarter of 2025 compared to the first quarter of 2025 primarily due to a $500,000 provision for unfunded loan commitments in the first quarter of 2025 and a $1.5 million decrease in salaries and benefits. The decrease in staff expense was primarily due to higher payroll taxes in the first quarter, resulting in a $1.2 million decrease in the second quarter of 2025.

The year-over-year increase in noninterest expense of $1.1 million, includes the impact of a $500,000 expense reduction in the second quarter of 2024 related to a decrease in reserves for unfunded loan commitments and a $603,000 increase in regulatory assessment expenses. The increase in regulatory assessment expenses in the second quarter of 2025 was due to a $700,000 reduction of an FDIC special assessment accrual in the second quarter of 2024. As a percentage of average assets, noninterest expense was 1.52% for the second quarter of 2025, compared to 1.58% for the first quarter of 2025 and 1.40% for the second quarter of 2024. The efficiency ratio for the second quarter of 2025 was 45.6%, compared to 46.7% for the first quarter of 2025 and 45.1% for the second quarter of 2024.

Income Taxes
Our effective tax rate for the quarter ended June 30, 2025 was 26.50%, compared with 26.50% for the first quarter of 2025, and 27.25% for the same period of 2024. Our estimated annual effective tax rate can vary depending upon the level of tax-advantaged income from municipal securities and BOLI, as well as available tax credits.

BALANCE SHEET HIGHLIGHTS

Assets
The Company reported total assets of $15.41 billion at June 30, 2025. This represented an increase of $157.5 million, or 1.03%, from total assets of $15.26 billion at March 31, 2025. The increase in assets included a $202.5 million increase in interest-earning balances due from the Federal Reserve, offset by a $80.7 million decrease in investment securities, and a $5.1 million decrease in total loans.

Total assets increased by $260.5 million, or 1.72%, from total assets of $15.15 billion at December 31, 2024. The increase in assets included a $492.8 million increase in interest-earning balances due from the Federal Reserve, offset by a $108.2 million decrease in investment securities, and a $175.8 million decrease in net loans.

Total assets at June 30, 2025 decreased by $737.4 million, or 4.57%, from total assets of $16.15 billion at June 30, 2024. The decrease in assets was primarily due to a decrease of $362.1 million in investment securities, a decrease of $318.6 million in net loans and a $126.2 million decrease in interest-earning balances due from the Federal Reserve.

Investment Securities
Total investment securities were $4.81 billion at June 30, 2025, a decrease of $80.7 million, or 1.65% from the prior quarter end, a decrease of $108.2 million, or 2.20% from $4.92 billion at December 31, 2024, and a decrease of $362.1 million, or 7.00%, from $5.18 billion at June 30, 2024.

At June 30, 2025, investment securities held-to-maturity (“HTM”) totaled $2.33 billion, a decrease of $31.9 million, or 1.35% from prior quarter end, a decrease of $52.4 million, or 2.20% from December 31, 2024, and a decrease of $102.7 million, or 4.22%, from June 30, 2024.

At June 30, 2025, investment securities available-for-sale (“AFS”) totaled $2.49 billion, inclusive of a pre-tax net unrealized loss of $363.7 million. AFS securities decreased by $48.8 million, or 1.92% from the prior quarter end, decreased by $55.8 million, or 2.20% from December 31, 2024, and decreased by $259.5 million, or 9.45%, from $2.75 billion at June 30, 2024. The pre-tax unrealized loss decreased by $24.7 million from the end of the prior quarter, while decreasing $84 million from December 31, 2024 and decreasing by $124.2 million from June 30, 2024.

Loans
Total loans and leases, at amortized cost, of $8.36 billion at June 30, 2025 decreased by $5.1 million, or 0.06%, from March 31, 2025. The quarter-over quarter decrease in loans included decreases of $29.9 million in commercial and industrial loans, and $18.1 million in dairy and livestock loans, partially offset by increases of $26.8 million in commercial real estate loans and $18.9 million in single-family residential (“SFR”) mortgage loans.

Total loans and leases, at amortized cost, decreased by $177.9 million, or 2.08%, from December 31, 2024. The decrease includes decreases of $186.0 million in dairy and livestock loans and $12.8 million in commercial and industrial loans, offset by increases of $19.3 million in SFR mortgage loans and $10.0 million in commercial real estate loans.

Total loans and leases, at amortized cost, decreased by $323.3 million, or 3.72%, from June 30, 2024. The decrease included decreases of $147.5 million in commercial real estate loans, $116.8 million in dairy & livestock loans and agribusiness loans, $43.8 million in commercial and industrial loans, and $34.6 million in construction loans, offset by an increase of $20.8 million in SFR mortgage loans.

Asset Quality
During the second quarter of 2025, we experienced credit charge-offs of $429,000 and total recoveries of $180,000, resulting in net charge-offs of $249,000. The allowance for credit losses (“ACL”) totaled $78.0 million at June 30, 2025, compared to $78.3 million at March 31, 2025 and $82.8 million at June 30, 2024. At June 30, 2025, ACL as a percentage of total loans and leases outstanding was 0.93%. This compares to 0.94% at March 31, 2025 and December 31, 2024 and 0.95% at June 30, 2024.

Nonperforming loans, defined as nonaccrual loans, including modified loans on nonaccrual, plus loans 90 days past due and accruing interest, and nonperforming assets, defined as nonperforming plus OREO, are highlighted below.

Nonperforming Assets and Delinquency Trends	June 30,			March 31,			June 30,
	2025			2025			2024
Nonperforming loans	(Dollars in thousands)
Commercial real estate	$	24,379		$	24,379		$	21,908
SBA		1,265			1,024			337
Commercial and industrial		265			173			2,712
Dairy & livestock and agribusiness		60			60			–
Total	$	25,969		$	25,636		$	24,957
% of Total loans		0.31	%		0.31	%		0.29	%

OREO
Commercial real estate	$	661		$	495		$	–
SFR mortgage		–			–			647
Total	$	661		$	495		$	647

Total nonperforming assets	$	26,630		$	26,131		$	25,604
% of Nonperforming assets to total assets		0.17	%		0.17	%		0.16	%

Past due 30-89 days (accruing)
Commercial real estate	$	–		$	–		$	43
SBA		3,419			718			–
Commercial and industrial		–			–			103
Total	$	3,419		$	718		$	146
% of Total loans		0.04	%		0.01	%		0.00	%
Total nonperforming, OREO, and past due	$	30,049		$	26,849		$	25,750

Classified Loans	$	73,422		$	94,169		$	124,728

The $499,000 increase in nonperforming assets from March 31, 2025 was primarily due to the addition of one nonperforming SBA loan in the amount of $620,000. Classified loans are loans that are graded “substandard” or worse. Classified loans decreased $20.7 million quarter-over-quarter, primarily due to a decrease of $19.9 million in classified commercial real estate loans.

Deposits & Customer Repurchase Agreements
Deposits of $11.98 billion and customer repurchase agreements of $404.2 million totaled $12.39 billion at June 30, 2025. This represented a net increase of $122.9 million compared to $12.27 billion at March 31, 2025. Total deposits and customer repurchase agreements increased by $179 million compared to December 31, 2024 and increased $329.8 million, or 2.74% when compared to $12.06 billion at June 30, 2024.

Noninterest-bearing deposits were $7.25 billion at June 30, 2025, an increase of $62.9 million, or 0.87%, when compared to $7.18 billion at March 31, 2025. Noninterest-bearing deposits increased by $210.0 million, or 2.98%, when compared to $7.04 billion at December 31, 2024, and increased by $157.0 million, or 2.21% when compared to $7.09 billion at June 30, 2024. At June 30, 2025, noninterest-bearing deposits were 60.47% of total deposits, compared to 59.92% at March 31, 2025, 58.90% at December 31, 2024 and 60.13% at June 30, 2024.

Borrowings
As of June 30, 2025, total borrowings consisted of $500 million of FHLB advances. The FHLB advances include $300 million, at an average cost of approximately 4.73%, maturing in May of 2026, and $200 million, at a cost of 4.27% maturing in May of 2027. Total borrowings decreased by $1.3 billion from June 30, 2024. The $1.8 billion of borrowings at June 30, 2024 consisted of $500 million of FHLB advances and $1.3 billion from the Federal Reserve’s Bank Term Funding Program, at a cost of 4.76%, all of which were redeemed before the end of 2024.

Capital
The Company’s total equity was $2.24 billion at June 30, 2025. This represented an overall increase of $54.0 million from total equity of $2.19 billion at December 31, 2024. Increases to equity included $101.7 million in net earnings and a $43.9 million increase in other comprehensive income that were partially offset by $55.6 million in cash dividends. During the first half of 2025, we repurchased, under our stock repurchase plan, 2,063,564 shares of common stock, at an average repurchase price of $18.15, totaling $37.5 million. Our tangible book value per share at June 30, 2025 was $10.64.

Our capital ratios under the revised capital framework referred to as Basel III remain well-above regulatory standards.

		CVB Financial Corp. Consolidated
Capital Ratios	Minimum Required Plus Capital Conservation Buffer	June 30, 2025	December 31, 2024	June 30, 2024

Tier 1 leverage capital ratio	4.0%	11.8%	11.5%	10.5%
Common equity Tier 1 capital ratio	7.0%	16.5%	16.2%	15.3%
Tier 1 risk-based capital ratio	8.5%	16.5%	16.2%	15.3%
Total risk-based capital ratio	10.5%	17.3%	17.1%	16.1%

Tangible common equity ratio		10.0%	9.8%	8.7%

CitizensTrust
As of June 30, 2025 CitizensTrust had approximately $5.0 billion in assets under management and administration, including $3.54 billion in assets under management. Revenues were $3.7 million for the second quarter of 2025, compared to $3.4 million in the first quarter of 2025 and $3.4 million for the second quarter of 2024. CitizensTrust provides trust, investment and brokerage related services, as well as financial, estate and business succession planning.

Corporate Overview
CVB Financial Corp. (“CVBF”) is the holding company for Citizens Business Bank. CVBF is one of the 10 largest bank holding companies headquartered in California with more than $15 billion in total assets. Citizens Business Bank is consistently recognized as one of the top performing banks in the nation and offers a wide array of banking, lending and investing services with more than 60 banking centers and three trust office locations serving California.

Shares of CVB Financial Corp. common stock are listed on the NASDAQ under the ticker symbol “CVBF”. For investor information on CVB Financial Corp., visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab.

Conference Call
Management will hold a conference call at 7:30 a.m. PDT/10:30 a.m. EDT on Thursday, July 24, 2025, to discuss the Company’s second quarter 2025 financial results. The conference call can be accessed live by registering at: https://register-conf.media-server.com/register/BIe2ad85fddf3443dbacab8109594ab423

The conference call will also be simultaneously webcast over the Internet; please visit our Citizens Business Bank website at www.cbbank.com and click on the “Investors” tab to access the call from the site. Please access the website 15 minutes prior to the call to download any necessary audio software. This webcast will be recorded and available for replay on the Company’s website approximately two hours after the conclusion of the conference call and will be available on the website for approximately 12 months.

Safe Harbor
Certain statements set forth herein constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “will likely result”, “aims”, “anticipates”, “believes”, “could”, “estimates”, “expects”, “hopes”, “intends”, “may”, “plans”, “projects”, “seeks”, “should”, “will,” “strategy”, “possibility”, and variations of these words and similar expressions help to identify these forward-looking statements, which involve risks and uncertainties that could cause actual results or performance to differ materially from those projected. These forward-looking statements are based on management’s current expectations and beliefs concerning future developments and their potential effects on the Company including, without limitation, plans, strategies, goals and statements about the Company’s outlook regarding revenue and asset growth, financial performance and profitability, capital and liquidity levels, loan and deposit levels, growth and retention, yields and returns, loan diversification and credit management, stockholder value creation, tax rates, the impact of business, economic, or political developments, the impact of monetary, fiscal and trade policies, and the impact of acquisitions we have made or may make. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of the Company, and there can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors, in addition to those set forth below, could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements.

General risks and uncertainties include, but are not limited to, the following: the strength of the United States economy in general and the strength of the local economies in which we conduct business; the effects of, and changes in, immigration, trade, tariff, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market and monetary fluctuations; the effect of acquisitions we have made or may make, including, without limitation, the failure to obtain the necessary regulatory approvals, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target and key personnel into our operations; the timely development of competitive products and services and the acceptance of these products and services by new and existing customers; the impact of changes in financial services policies, laws, and regulations, including those concerning banking, taxes, securities, and insurance, and the application thereof by regulatory agencies; the effectiveness of our risk management framework and quantitative models; changes in the level of our nonperforming assets and charge-offs; the transition away from USD LIBOR and uncertainties regarding potential alternative reference rates, including SOFR; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the U.S. Securities and Exchange Commission (“SEC”), the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; possible credit related impairments or declines in the fair value of loans and securities held by us; possible impairment charges to goodwill on our balance sheet; changes in customer spending, borrowing, and savings habits; the effects of our lack of a diversified loan portfolio, including the risks of geographic and industry concentrations; periodic fluctuations in commercial or residential real estate prices or values; our ability to attract or retain deposits or to access government or private lending facilities and other sources of liquidity; the possibility that we may reduce or discontinue the payment of dividends on our common stock; changes in the financial performance and/or condition of our borrowers; changes in the competitive environment among financial and bank holding companies and other financial service providers; technological changes in banking and financial services; geopolitical conditions, including acts or threats of terrorism, actions taken by the United States or other governments in response to acts or threats of terrorism, and/or military conflicts, which could impact business and economic conditions in the United States and abroad; catastrophic events or natural disasters, including earthquakes, drought, climate change or extreme weather events that may affect our assets, communications or computer services, customers, employees or third party vendors; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including on our asset credit quality, business operations, and employees, as well as the impact on general economic and financial market conditions; cybersecurity threats and fraud and the costs of defending against them, including the costs of compliance with legislation or regulations to combat fraud and cybersecurity threats; our ability to recruit and retain key executives, board members and other employees, and our ability to comply with federal and state in employment laws and regulations; ongoing or unanticipated regulatory or legal proceedings or outcomes; and our ability to manage the risks involved in the foregoing.

Additional factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company’s 2024 Annual Report on Form 10-K filed with the SEC and available at the SEC’s Internet site (http://www.sec.gov).

The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements, except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

Non-GAAP Financial Measures — Certain financial information provided in this earnings release has not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and is presented on a non-GAAP basis. Investors and analysts should refer to the reconciliations included in this earnings release and should consider the Company’s non-GAAP measures in addition to, not as a substitute for or as superior to, measures prepared in accordance with GAAP. These measures may or may not be comparable to similarly titled measures used by other companies.

Contact: David A. Brager
President and Chief
Executive Officer
(909) 980-4030

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)


	June 30, 2025			December 31, 2024			June 30, 2024
Assets
Cash and due from banks	$	195,063		$	153,875		$	174,454
Interest-earning balances due from Federal Reserve		543,573			50,823			669,740
Total cash and cash equivalents		738,636			204,698			844,194
Interest-earning balances due from depository institutions		11,004			480			7,345
Investment securities available-for-sale		2,486,306			2,542,115			2,745,796
Investment securities held-to-maturity		2,327,230			2,379,668			2,429,886
Total investment securities		4,813,536			4,921,783			5,175,682
Investment in stock of Federal Home Loan Bank (FHLB)		18,012			18,012			18,012
Loans and lease finance receivables		8,358,501			8,536,432			8,681,846
Allowance for credit losses		(78,003	)		(80,122	)		(82,786	)
Net loans and lease finance receivables		8,280,498			8,456,310			8,599,060
Premises and equipment, net		26,606			27,543			43,232
Bank owned life insurance (BOLI)		320,596			316,248			314,329
Intangibles		7,657			9,967			12,416
Goodwill		765,822			765,822			765,822
Other assets		431,763			432,792			371,403
Total assets	$	15,414,130		$	15,153,655		$	16,151,495
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	7,247,128		$	7,037,096		$	7,090,095
Investment checking		483,793			551,305			515,930
Savings and money market		3,669,912			3,786,387			3,409,320
Time deposits		583,990			573,593			774,980
Total deposits		11,984,823			11,948,381			11,790,325
Customer repurchase agreements		404,154			261,887			268,826
Other borrowings		500,000			500,000			1,800,000
Other liabilities		284,831			257,071			179,917
Total liabilities		13,173,808			12,967,339			14,039,068
Stockholders’ Equity
Stockholders’ equity		2,508,454			2,498,380			2,446,755
Accumulated other comprehensive loss, net of tax		(268,132	)		(312,064	)		(334,328	)
Total stockholders’ equity		2,240,322			2,186,316			2,112,427
Total liabilities and stockholders’ equity	$	15,414,130		$	15,153,655		$	16,151,495

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED AVERAGE BALANCE SHEETS
(Unaudited)
(Dollars in thousands)

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Assets
Cash and due from banks	$	154,785		$	154,328		$	162,724		$	154,557		$	162,387
Interest-earning balances due from Federal Reserve		331,956			161,432			704,023			247,165			568,722
Total cash and cash equivalents		486,741			315,760			866,747			401,722			731,109
Interest-earning balances due from depository institutions		5,973			957			12,893			3,479			11,786
Investment securities available-for-sale		2,505,601			2,539,211			2,764,096			2,522,313			2,832,097
Investment securities held-to-maturity		2,341,814			2,369,507			2,442,863			2,355,584			2,450,237
Total investment securities		4,847,415			4,908,718			5,206,959			4,877,897			5,282,334
Investment in stock of FHLB		18,012			18,012			18,012			18,012			18,012
Loans and lease finance receivables		8,354,898			8,467,465			8,731,587			8,410,871			8,778,083
Allowance for credit losses		(78,259	)		(80,113	)		(82,815	)		(79,181	)		(84,283	)
Net loans and lease finance receivables		8,276,639			8,387,352			8,648,772			8,331,690			8,693,800
Premises and equipment, net		26,982			27,408			43,624			27,194			44,002
Bank owned life insurance (BOLI)		319,582			316,643			312,645			318,121			311,127
Intangibles		8,232			9,518			13,258			8,872			13,922
Goodwill		765,822			765,822			765,822			765,822			765,822
Other assets		427,776			419,116			390,834			423,469			370,575
Total assets	$	15,183,174		$	15,169,306		$	16,279,566		$	15,176,278		$	16,242,489
Liabilities and Stockholders’ Equity
Liabilities:
Deposits:
Noninterest-bearing	$	7,051,702		$	7,006,357		$	7,153,315		$	7,029,156		$	7,168,016
Interest-bearing		4,755,828			4,866,318			4,728,864			4,810,767			4,591,500
Total deposits		11,807,530			11,872,675			11,882,179			11,839,923			11,759,516
Customer repurchase agreements		376,629			317,322			287,128			347,140			298,200
Other borrowings		508,159			513,078			1,850,330			510,605			1,921,154
Other liabilities		252,908			239,283			157,463			246,132			162,953
Total liabilities		12,945,226			12,942,358			14,177,100			12,943,800			14,141,823
Stockholders’ Equity
Stockholders’ equity		2,518,282			2,523,923			2,456,945			2,521,086			2,444,510
Accumulated other comprehensive loss, net of tax		(280,334	)		(296,975	)		(354,479	)		(288,608	)		(343,844	)
Total stockholders’ equity		2,237,948			2,226,948			2,102,466			2,232,478			2,100,666
Total liabilities and stockholders’ equity	$	15,183,174		$	15,169,306		$	16,279,566		$	15,176,278		$	16,242,489

CVB FINANCIAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Unaudited)
(Dollars in thousands, except per share amounts)

	Three Months Ended								Six Months Ended
	June 30, 2025		March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Interest income:
Loans and leases, including fees	$	108,845	$	109,071		$	114,200		$	217,916		$	230,549
Investment securities:
Investment securities available-for-sale		18,299		18,734			21,225			37,033			42,671
Investment securities held-to-maturity		12,886		13,021			13,445			25,907			26,847
Total investment income		31,185		31,755			34,670			62,940			69,518
Dividends from FHLB stock		411		379			377			790			796
Interest-earning deposits with other institutions		3,768		1,797			9,825			5,565			15,898
Total interest income		144,209		143,002			159,072			287,211			316,761
Interest expense:
Deposits		24,829		25,322			25,979			50,151			47,345
Borrowings and customer repurchase agreements		7,401		6,800			22,244			14,201			46,106
Other		371		436			–			807			–
Total interest expense		32,601		32,558			48,223			65,159			93,451
Net interest income before (recapture of) provision for credit losses		111,608		110,444			110,849			222,052			223,310
(Recapture of) provision for credit losses		–		(2,000	)		–			(2,000	)		–
Net interest income after (recapture of) provision for credit losses		111,608		112,444			110,849			224,052			223,310
Noninterest income:
Service charges on deposit accounts		4,959		4,908			5,117			9,867			10,153
Trust and investment services		3,716		3,411			3,428			7,127			6,652
Gain on OREO, net		6		2,183			–			2,189			–
Other		6,063		5,727			5,879			11,790			11,732
Total noninterest income		14,744		16,229			14,424			30,973			28,537
Noninterest expense:
Salaries and employee benefits		34,999		36,477			35,426			71,476			71,827
Occupancy and equipment		6,106		5,998			5,772			12,104			11,337
Professional services		2,191		2,081			2,726			4,272			4,981
Computer software expense		4,410		4,221			3,949			8,631			7,474
Marketing and promotion		1,817		1,988			1,956			3,805			3,586
Amortization of intangible assets		1,155		1,155			1,437			2,310			2,875
Provision for (recapture of) unfunded loan commitments		–		500			(500	)		500			(500	)
Other		6,879		6,724			5,731			13,603			14,688
Total noninterest expense		57,557		59,144			56,497			116,701			116,268
Earnings before income taxes		68,795		69,529			68,776			138,324			135,579
Income taxes		18,231		18,425			18,741			36,656			36,945
Net earnings	$	50,564	$	51,104		$	50,035		$	101,668		$	98,634

Basic earnings per common share	$	0.36	$	0.37		$	0.36		$	0.72		$	0.71
Diluted earnings per common share	$	0.36	$	0.36		$	0.36		$	0.72		$	0.71
Cash dividends declared per common share	$	0.20	$	0.20		$	0.20		$	0.20		$	0.40

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Interest income – tax equivalent (TE)	$	144,729		$	143,525		$	159,607		$	288,253		$	317,835
Interest expense		32,601			32,558			48,223			65,159			93,451
Net interest income – (TE)	$	112,128		$	110,967		$	111,384		$	223,094		$	224,384

Return on average assets, annualized		1.34	%		1.37	%		1.24	%		1.35	%		1.22	%
Return on average equity, annualized		9.06	%		9.31	%		9.57	%		9.18	%		9.44	%
Efficiency ratio [1]		45.55	%		46.69	%		45.10	%		46.12	%		46.17	%
Noninterest expense to average assets, annualized		1.52	%		1.58	%		1.40	%		1.55	%		1.44	%
Yield on average loans		5.22	%		5.22	%		5.26	%		5.22	%		5.28	%
Yield on average earning assets (TE)		4.28	%		4.28	%		4.37	%		4.28	%		4.36	%
Cost of deposits		0.84	%		0.86	%		0.88	%		0.85	%		0.81	%
Cost of deposits and customer repurchase agreements		0.87	%		0.87	%		0.87	%		0.87	%		0.80	%
Cost of funds		1.03	%		1.04	%		1.38	%		1.03	%		1.34	%
Net interest margin (TE)		3.31	%		3.31	%		3.05	%		3.31	%		3.07	%
[1] Noninterest expense divided by net interest income before provision for credit losses plus noninterest income.

Tangible Common Equity Ratio (TCE) [2]
CVB Financial Corp. Consolidated		10.02	%		10.04	%		8.68	%
Citizens Business Bank		9.86	%		9.92	%		8.57	%
[2] (Capital – [GW+Intangibles])/(Total Assets – [GW+Intangibles])

Weighted average shares outstanding
Basic		139,297,604			138,973,996			138,583,510			139,824,075			138,419,379
Diluted		139,471,147			139,294,401			138,669,058			140,098,174			138,561,481
Dividends declared	$	27,703		$	27,853		$	28,018		$	55,556		$	55,904
Dividend payout ratio [3]		54.79	%		54.50	%		56.00	%		54.64	%		56.68	%
[3] Dividends declared on common stock divided by net earnings.

Number of shares outstanding – (end of period)		137,825,465			139,089,612			139,677,162
Book value per share	$	16.25		$	16.02		$	15.12
Tangible book value per share	$	10.64		$	10.45		$	9.55

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)

	Three Months Ended
	June 30, 2025			December 31, 2024			June 30, 2024
Nonperforming assets:
Nonaccrual loans	$	25,969		$	27,795		$	24,957
Other real estate owned (OREO), net		661			19,303			647
Total nonperforming assets	$	26,630		$	47,098		$	25,604
Loan modifications to borrowers experiencing financial difficulty	$	9,529		$	6,467		$	26,363

Percentage of nonperforming assets to total loans outstanding and OREO		0.32	%		0.55	%		0.29	%
Percentage of nonperforming assets to total assets		0.17	%		0.31	%		0.16	%
Allowance for credit losses to nonperforming assets		292.91	%		170.12	%		323.33	%

	Three Months Ended									Six Months Ended
	June 30, 2025			March 31, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Allowance for credit losses:
Beginning balance	$	78,252		$	80,122		$	82,817		$	80,122		$	86,842
Total charge-offs		(429	)		(40	)		(51	)		(469	)		(4,318	)
Total recoveries on loans previously charged-off		180			170			20			350			262
Net recoveries (charge-offs)		(249	)		130			(31	)		(119	)		(4,056	)
(Recapture of) provision for credit losses		–			(2,000	)		–			(2,000	)		–
Allowance for credit losses at end of period	$	78,003		$	78,252		$	82,786		$	78,003		$	82,786

Net recoveries (charge-offs) to average loans		-0.003	%		0.002	%	-0.000		%		-0.001	%		-0.046	%

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in millions)

Allowance for Credit Losses by Loan Type
	June 30, 2025				December 31, 2024				June 30, 2024
	Allowance For Credit Losses		Allowance as a % of Total Loans by Respective Loan Type		Allowance For Credit Losses		Allowance as a % of Total Loans by Respective Loan Type		Allowance For Credit Losses		Allowance as a % of Total Loans by Respective Loan Type

Commercial real estate	$	64.5		0.99%	$	66.2		1.02%	$	69.4		1.04%
Construction		0.2		1.36%		0.3		1.94%		0.8		1.51%
SBA		3.1		1.13%		2.6		0.96%		2.5		0.93%
Commercial and industrial		6.4		0.70%		6.1		0.66%		5.1		0.53%
Dairy & livestock and agribusiness		2.6		1.09%		3.6		0.86%		3.8		1.08%
Municipal lease finance receivables		0.2		0.35%		0.2		0.31%		0.2		0.26%
SFR mortgage		0.5		0.17%		0.5		0.16%		0.5		0.19%
Consumer and other loans		0.5		1.03%		0.6		1.04%		0.5		1.07%

Total	$	78.0		0.93%	$	80.1		0.94%	$	82.8		0.95%

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands, except per share amounts)

Quarterly Common Stock Price
	2025					2024						2023
Quarter End	High		Low			High			Low			High			Low
March 31,	$	21.71	$	18.22		$	20.45		$	15.95		$	25.98		$	16.34
June 30,	$	20.15	$	16.01		$	17.91		$	15.71		$	16.89		$	10.66
September 30,	$	–	$	–		$	20.29		$	16.08		$	19.66		$	12.89
December 31,	$	–	$	–		$	24.58		$	17.20		$	21.77		$	14.62

Quarterly Consolidated Statements of Earnings
			Q2			Q1			Q4			Q3			Q2
			2025			2025			2024			2024			2024
Interest income
Loans and leases, including fees			$	108,845		$	109,071		$	110,277		$	114,929		$	114,200
Investment securities and other				35,364			33,931			37,322			50,823			44,872
Total interest income				144,209			143,002			147,599			165,752			159,072
Interest expense
Deposits				24,829			25,322			28,317			29,821			25,979
Borrowings and customer repurchase agreements				7,401			6,800			8,291			22,312			22,244
Other				371			436			573			–			–
Total interest expense				32,601			32,558			37,181			52,133			48,223

Net interest income before (recapture of) provision for credit losses				111,608			110,444			110,418			113,619			110,849
(Recapture of) provision for credit losses				–			(2,000	)		(3,000	)		–			–
Net interest income after (recapture of) provision for credit losses				111,608			112,444			113,418			113,619			110,849

Noninterest income				14,744			16,229			13,103			12,834			14,424
Noninterest expense				57,557			59,144			58,480			58,835			56,497
Earnings before income taxes				68,795			69,529			68,041			67,618			68,776
Income taxes				18,231			18,425			17,183			16,394			18,741
Net earnings			$	50,564		$	51,104		$	50,858		$	51,224		$	50,035

Effective tax rate				26.50	%		26.50	%		25.25	%		24.25	%		27.25	%

Basic earnings per common share			$	0.36		$	0.37		$	0.36		$	0.37		$	0.36
Diluted earnings per common share			$	0.36		$	0.36		$	0.36		$	0.37		$	0.36

Cash dividends declared per common share			$	0.20		$	0.20		$	0.20		$	0.20		$	0.20

Cash dividends declared			$	27,703		$	27,853		$	27,978		$	27,977		$	28,018

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands)

Loan Portfolio by Type
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024

Commercial real estate	$	6,517,415		$	6,490,604		$	6,507,452		$	6,618,637		$	6,664,925
Construction		17,658			15,706			16,082			14,755			52,227
SBA		271,735			271,844			273,013			272,001			267,938
SBA – PPP		85			179			774			1,255			1,757
Commercial and industrial		912,427			942,301			925,178			936,489			956,184
Dairy & livestock and agribusiness		233,772			252,532			419,904			342,445			350,562
Municipal lease finance receivables		63,652			65,203			66,114			67,585			70,889
SFR mortgage		288,435			269,493			269,172			267,181			267,593
Consumer and other loans		53,322			55,770			58,743			52,217			49,771
Gross loans, at amortized cost		8,358,501			8,363,632			8,536,432			8,572,565			8,681,846
Allowance for credit losses		(78,003	)		(78,252	)		(80,122	)		(82,942	)		(82,786	)
Net loans	$	8,280,498		$	8,285,380		$	8,456,310		$	8,489,623		$	8,599,060


Deposit Composition by Type and Customer Repurchase Agreements
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024

Noninterest-bearing	$	7,247,128		$	7,184,267		$	7,037,096		$	7,136,824		$	7,090,095
Investment checking		483,793			533,220			551,305			504,028			515,930
Savings and money market		3,669,912			3,710,612			3,786,387			3,745,707			3,409,320
Time deposits		583,990			561,822			573,593			685,930			774,980
Total deposits		11,984,823			11,989,921			11,948,381			12,072,489			11,790,325

Customer repurchase agreements		404,154			276,163			261,887			394,515			268,826
Total deposits and customer repurchase agreements	$	12,388,977		$	12,266,084		$	12,210,268		$	12,467,004		$	12,059,151

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
(Dollars in thousands)
Nonperforming Assets and Delinquency Trends
	June 30,			March 31,			December 31,			September 30,			June 30,
	2025			2025			2024			2024			2024
Nonperforming loans
Commercial real estate	$	24,379		$	24,379		$	25,866		$	18,794		$	21,908
SBA		1,265			1,024			1,529			151			337
Commercial and industrial		265			173			340			2,825			2,712
Dairy & livestock and agribusiness		60			60			60			143			–
Total	$	25,969		$	25,636		$	27,795		$	21,913		$	24,957
% of Total loans		0.31	%		0.31	%		0.33	%		0.26	%		0.29	%

Past due 30-89 days (accruing)
Commercial real estate	$	–		$	–		$	–		$	30,701		$	43
SBA		3,419			718			88			–			–
Commercial and industrial		–			–			399			64			103
Total	$	3,419		$	718		$	487		$	30,765		$	146
% of Total loans		0.04	%		0.01	%		0.01	%		0.36	%		0.00	%

OREO
Commercial real estate	$	661		$	495		$	18,656		$	–		$	–
SFR mortgage		–			–			647			647			647
Total	$	661		$	495		$	19,303		$	647		$	647
Total nonperforming, past due, and OREO	$	30,049		$	26,849		$	47,585		$	53,325		$	25,750
% of Total loans		0.36	%		0.32	%		0.56	%		0.62	%		0.30	%

CVB FINANCIAL CORP. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)

Regulatory Capital Ratios
	Minimum Required	CVB Financial Corp. Consolidated
Capital Ratios	Plus Capital Conservation Buffer	June 30, 2025	December 31, 2024	June 30, 2024

Tier 1 leverage capital ratio	4.0%	11.8%	11.5%	10.5%
Common equity Tier 1 capital ratio	7.0%	16.5%	16.2%	15.3%
Tier 1 risk-based capital ratio	8.5%	16.5%	16.2%	15.3%
Total risk-based capital ratio	10.5%	17.3%	17.1%	16.1%

Tangible common equity ratio		10.0%	9.8%	8.7%

Tangible Book Value Reconciliations (Non-GAAP)

The tangible book value per share is a Non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. The following is a reconciliation of tangible book value to the Company stockholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share.

	June 30, 2025			December 31, 2024			June 30, 2024
	(Dollars in thousands, except per share amounts)

Stockholders’ equity	$	2,240,322		$	2,186,316		$	2,112,427
Less: Goodwill		(765,822	)		(765,822	)		(765,822	)
Less: Intangible assets		(7,657	)		(9,967	)		(12,416	)
Tangible book value	$	1,466,843		$	1,410,527		$	1,334,189
Common shares issued and outstanding		137,825,465			139,689,686			139,677,162
Tangible book value per share	$	10.64		$	10.10		$	9.55

Return on Average Tangible Common Equity Reconciliations (Non-GAAP)

The return on average tangible common equity is a non-GAAP disclosure. The Company uses certain non-GAAP financial measures to provide supplemental information regarding the Company’s performance. The following is a reconciliation of net income, adjusted for tax-effected amortization of intangibles, to net income computed in accordance with GAAP; a reconciliation of average tangible common equity to the Company’s average stockholders’ equity computed in accordance with GAAP; as well as a calculation of return on average tangible common equity.

	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
	2025			2025			2024			2025			2024
	(Dollars in thousands)

Net Income	$	50,564		$	51,104		$	50,035		$	101,668		$	98,634
Add: Amortization of intangible assets		1,155			1,155			1,437			2,310			2,875
Less: Tax effect of amortization of intangible assets (1)		(341	)		(341	)		(425	)		(683	)		(850	)
Tangible net income	$	51,378		$	51,918		$	51,047		$	103,295		$	100,659

Average stockholders’ equity	$	2,237,948		$	2,226,948		$	2,102,466		$	2,232,478		$	2,100,666
Less: Average goodwill		(765,822	)		(765,822	)		(765,822	)		(765,822	)		(765,822	)
Less: Average intangible assets		(8,232	)		(9,518	)		(13,258	)		(8,872	)		(13,922	)
Average tangible common equity	$	1,463,894		$	1,451,608		$	1,323,386		$	1,457,784		$	1,320,922

Return on average equity, annualized (2)		9.06	%		9.31	%		9.57	%		9.18	%		9.44	%
Return on average tangible common equity, annualized (2)		14.08	%		14.51	%		15.51	%		14.29	%		15.32	%

(1) Tax effected at respective statutory rates.
(2) Annualized where applicable.

The MIL Network –

July 24, 2025

MIL-OSI Analysis: How public development banks could narrow inequality gaps between the Global North and South

Source: The Conversation – Canada – By Alicja Paulina Krubnik, PhD Candidate, Political Science, McMaster University

The United Nations’ Fourth International Conference on Financing for Development (FFD4) recently concluded in Seville, Spain. It gathered global leaders from government, development, academia and civil society to discuss key barriers to sustainable development and shape collaborative efforts to address them.

FFD4 comes at a crucial time, when the Action Agenda from the last FFD3, set 10 years ago, must be built upon and upheld. With only five years left to meet the UN’s Sustainable Development Goals (SDGs), more than 80 per cent are off track. More tangibly, 2030 is a key deadline for global emissions reduction.

The global aid environment is also in crisis, just as low- and middle-income countries face mounting pressures due to the interconnected impacts of climate change, environmental damage, poverty and inequality.

Boosting global co-operation

FFD4 was an opportunity to revitalize and transform international development co-operation to help states meet these challenges and pursue sustainable development.

Achieving this requires more than decarbonizing development financing. FFD4 faced its most testing challenge yet: how to reform the global financial systems that direct development resources.

Key factors include aligning funding with the sustainable development needs of low- and middle-income countries, increasing access to long-term concessional financing — loans or other forms of financing provided on terms more favourable than those in the market — and reducing public debt burdens.

Public development banks offer crucial leadership here. They provide affordable financing, direct resources where urgently needed and align funding with long-term development strategies, giving them significant potential to democratize project ownership.

Urgent human development needs

At the FFD4 gathering, many representatives, especially from Global South and climate-vulnerable countries, highlighted the inadequacy of development financing. Seedy Keita, the minister for finance and economic affairs from The Gambia, told the conference that as developing countries are being urged to invest more in climate and human development initiatives, they lack the tools to do so.

The countries facing the worst climate impacts also struggle with urgent human development needs. Adapting to and mitigating climate breakdown are inseparable from economic and social development, with human welfare — access to food, water and clean air, avoiding displacement and the safety of women and girls — intimately linked to climate.

Yet climate-vulnerable states receive a small share of global development financing, particularly for adaptation projects that yield lower returns. Additionally, resources for building value-added industries in low- and middle-income countries remain insufficient.

Scant commitment to action

Simply increasing financing is not enough. At the launch of the latest SDGs Report, UN Secretary General António Guterres stated:

“There is something fundamentally wrong in the structure of the economic and financial architecture and in the way it operates to the detriment of developing countries.”

In short, it’s too rigid and unresponsive to the Global South’s unique needs, ultimately constraining their ability to act on the SDGs.

The most ambitious and pressing outcome of FFD4, the “Sevilla Commitment,” addresses key issues in efforts to reform international financial systems but lacks commitment to strong, transformative action.

Too much priority is given to enabling low- and middle-income countries to access private finance for development. Using public development finance to mobilize private investments and lending has failed to close the financing gap.

Poverty and inequality worsens

Private support for the structural green transformation needed for long-term economic development in low- and middle-income countries remains inadequate, widening the divide between the Global North and South. The strategy of catalyzing private finance has shifted risk to public balance sheets while reserving most of the profits for private, often multinational corporations — what’s known as “de-risking.”

A privatized development strategy has pushed fiscal austerity measures on Global South countries to access international capital markets to fund development initiatives. Many of these countries are struggling with alarming debt, forcing them to divert scarce funds from essential services like health and education to service debts, which worsens poverty and inequality.

FFD4’s efforts to create a fairer debt system include scaling up debt swaps and forming an alliance between creditor countries and multilateral banks to implement debt “pause clauses” during crises. While many states called for deeper debt reforms and a UN convention on sovereign debt, several wealthy countries resisted bold changes.

They largely overlooked the Global North’s climate debt — estimated at $192 trillion. The Sevilla Commitment proposes launching a UN-led intergovernmental process, opening a potential path for creditor action.

As Spain’s economy minister put it, FFD4 is a “launchpad for action” not a “landing zone.”

Directing money to where it’s needed most

Public development banks have the potential to lead this action for a more prosperous and equitable future. They can mobilize under-utilized public resources more economically, rapidly and effectively to serve development goals in a climate-forward way.

These banks can direct finance to where it’s most needed, aligning with development priorities across diverse low- and middle-income countries.

Public development banks are also well-positioned to co-ordinate at multilateral, regional and national levels and to align global decarbonization goals to local demands. The largest coalition of banks, the Finance in Commons group, was recognized in the Sevilla Commitment. The group called for strengthening public development banks’ co-operation and leadership at the FFD4. Already a leader in global climate financing, further co-ordination among public debate banks could amplify its impact.

Supporting green, equitable development

Structural change requires the long-term, affordable and counter-cyclical financing that public development banks can provide.

For indebted developing countries facing high borrowing costs, steadfast concessional financing is crucial. Beyond finance, public development banks have a privileged role in knowledge formation and dissemination, which can be leveraged alongside their financial power to support green and equitable development.

As public organizations, public development banks offer greater potential for transparency and accountability to democratic decision-making, aligning financing with public values. Beyond simply de-risking, these banks can leverage their financial power to generate broader public benefits.

Alicja Paulina Krubnik receives funding from the Social Sciences and Humanities Research Council and the International Development Research Centre.

– ref. How public development banks could narrow inequality gaps between the Global North and South – https://theconversation.com/how-public-development-banks-could-narrow-inequality-gaps-between-the-global-north-and-south-261160

MIL OSI Analysis –

July 24, 2025

MIL-OSI Canada: Governments of Canada and Manitoba investing over $6 million to strengthen local food processing sector

Source: Government of Canada News (2)

July 23, 2025 – Brandon, Manitoba – Agriculture and Agri-Food Canada

The governments of Canada and Manitoba are investing more than $6 million to help modernize food processing facilities and increase food production capacity across Manitoba under the Sustainable Canadian Agricultural Partnership (Sustainable CAP), federal Agriculture and Agri-Food Minister Heath MacDonald and Manitoba Agriculture Minister Ron Kostyshyn announced today.

Nineteen food processors in Manitoba have been approved for funding for equipment upgrades, facility expansions, and new technologies that will improve efficiency, production capacity, and environmental performance.

Some of the approved projects include:

Jowett Farms in Blumenort, for refrigeration and line speed improvements
River Valley Specialty Farms Inc., in Bagot, for installation of high-accuracy sorter
Prairie Flour Mills Ltd., in Elie, for grain receiving expansion
Buffalo Creek Mills in Altona, for doubling capacity of oat flaking
Prairie Fava Ltd., in Glenboro, for increasing storage capacity

MIL OSI Canada News –

July 24, 2025

MIL-OSI: TowneBank Reports Second Quarter 2025 Earnings

Source: GlobeNewswire (MIL-OSI)

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

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

Highlights for Second Quarter 2025:

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

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

Quarterly Net Interest Income:

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

Quarterly Provision for Credit Losses:

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

Quarterly Noninterest Income:

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

Quarterly Noninterest Expense:

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

Consolidated Balance Sheet Highlights:

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

Investment Securities:

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

Loans and Asset Quality:

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

Deposits and Borrowings:

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

Capital:

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

⁽¹⁾ Preliminary.

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

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

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

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

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

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

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

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

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

TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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


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

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


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

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

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


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

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


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

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

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

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

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


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

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

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

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

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

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


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

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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


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

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

The MIL Network –

July 24, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

Highlights for the fourth quarter of fiscal 2025:

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

Dividend Declared:

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

Conference Call:

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

Balance Sheet Summary:

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

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

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


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

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

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

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

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

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

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

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

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

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


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

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

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

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

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

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

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

Quarterly Income Statement Summary:

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

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

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

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

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

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

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

Forward-Looking Information:

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

Southern Missouri Bancorp, Inc.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION


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

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

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

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

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

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

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

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

(1) Non-GAAP financial measure.


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

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

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

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


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

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

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


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

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

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

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

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

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

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

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

The MIL Network –

July 24, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

Highlights for the fourth quarter of fiscal 2025:

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

Dividend Declared:

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

Conference Call:

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

Balance Sheet Summary:

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

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

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


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

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

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

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

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

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

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

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

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

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


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

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

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

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

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

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

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

Quarterly Income Statement Summary:

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

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

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

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

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

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

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

Forward-Looking Information:

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

Southern Missouri Bancorp, Inc.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION


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

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

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

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

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

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

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

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

(1) Non-GAAP financial measure.


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

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

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

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


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

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

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


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

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

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

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

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

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

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

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

The MIL Network –

July 24, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

Conference Call

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

Live Telephone Dial-In

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

Live Webcast Log-In

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

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

Second Quarter 2025 Key Measures

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

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

Important Note Regarding Forward-Looking Statements

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

About Live Oak Bancshares, Inc.

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

Contacts:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The MIL Network –

July 24, 2025

MIL-OSI: David M. Findlay Named to Indianapolis Business Journal’s Indiana 250 List for Fourth Consecutive Year

Source: GlobeNewswire (MIL-OSI)

WARSAW, Ind., July 23, 2025 (GLOBE NEWSWIRE) — Lake City Bank is proud to announce that David M. Findlay, Chairman and Chief Executive Officer, has been named to the Indianapolis Business Journal’s Indiana 250 list for the fourth consecutive year. The annual list recognizes the state’s most influential and impactful leaders across business, philanthropy, the arts, government and not-for-profits.

“It’s an honor to be recognized alongside such influential leaders making an impact in our state,” Findlay said. “This list highlights the incredible depth and strength of leadership we have in Indiana to keep our communities moving forward.”

Findlay serves as the Chairman of the boards of directors and Chief Executive Officer of Lakeland Financial and Lake City Bank. He also served as President and Chief Executive Officer from 2014-2023, President and Chief Financial Officer from 2010-2014 and Chief Financial Officer from 2000-2010.

Findlay is active as a board member with many organizations including the Indiana Bankers Association, Indiana Chamber of Commerce, Central Indiana Corporate Partnership, OrthoWorx, Accelinx, the Northeast Indiana Regional Partnership, Parkview Health, Centerfield Capital Partners and the Trine University Board of Trustees.

A full list of those included on the 2025 Indiana 250 list is available on the Indianapolis Business Journal’s website at www.indiana250.com.

Lake City Bank, a $6.9 billion bank headquartered in Warsaw, Indiana, was founded in 1872 and serves Central and Northern Indiana communities with 54 branch offices and a robust digital banking platform. Lake City Bank’s community banking model prioritizes building in-market long-term customer relationships while delivering technology-forward solutions for retail and commercial clients. The bank is the single bank subsidiary of Lakeland Financial Corporation (Nasdaq Global Select/LKFN). For more information visit www.lakecitybank.com.

Contact
Luke Weick
Vice President
Marketing Manager
(574) 267-9198 x47279 office
(260) 431-7061 mobile
luke.weick@lakecitybank.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9db91f9b-e7b5-4a83-9feb-a1016dabf248

The MIL Network –

July 24, 2025

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

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

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

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

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

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

The MIL Network –

July 24, 2025

Category: Politics

Prime Minister secures thousands of British jobs and £6 billion in investment and export wins as historic trade deal with India signed

Prime Minister Keir Starmer said:

Business and Trade Secretary Jonathan Reynolds said:

Tufan Erginbiligic, Rolls-Royce CEO, said:

Nik Jhangiani, Interim Chief Executive, Diageo, said:

William Bain, Head of Trade Policy at the BCC, said:

Jean-Etienne Gourgues, Chivas Brothers Chairman and CEO, said:

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