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  • MIL-OSI: TLGY Acquisition Corp. Announces Rescheduling of Conference Call Relating to its Business Combination with StableCoinX Assets

    Source: GlobeNewswire (MIL-OSI)

    New York , July 21, 2025 (GLOBE NEWSWIRE) — TLGY Acquisition Corp. (OTC: TLGYF) (“TLGY”), a special purpose acquisition company, today announced that it has entered into a definitive agreement for a business combination with StablecoinX Assets Inc. (“SC Assets”), a newly-formed validator and infrastructure business supporting the Ethena ecosystem (the definitive agreement, the “Business Combination Agreement” and the transactions contemplated thereby, the “Transaction”). The combined company will be named StablecoinX Inc. (“StablecoinX” or the “Company”) and the parties will seek to have StablecoinX’s Class A common shares listed on Nasdaq under the ticker symbol “USDE.”

    TLGY will discuss the proposed Transaction with securities analysts in a call tomorrow, Tuesday, July 22, 2025, at 8:30 a.m. ET. A webcast of the meeting will be available in a listen-only mode to individual investors, media, and other interested parties on TLGY’s website at www.tlgyacquisition.com under the “Events” section. This call has been rescheduled from the previously announced date and time.

    Important Information and Where to Find It

    In connection with the Transaction, StablecoinX intends to file with the Securities and Exchange Commission (the “SEC”) a registration statement on Form S-4 (the “Registration Statement”), which will include a preliminary proxy statement of TLGY and a preliminary prospectus of StablecoinX, and after the Registration Statement is declared effective, TLGY will mail the definitive proxy statement/prospectus relating to the Transaction to its shareholders as of the record date to be established for voting at the Extraordinary General Meeting. The Registration Statement, including the proxy statement/prospectus contained therein, will contain important information about the Transaction and the other matters to be voted upon at the Extraordinary General Meeting. This press release does not contain all the information that should be considered concerning the Transaction and other matters and is not intended to provide the basis for any investment decision or any other decision in respect of such matters. TLGY and StablecoinX may also file other documents with the SEC regarding the Transaction. TLGY’s shareholders and other interested persons are advised to read, when available, the Registration Statement, including the preliminary proxy statement/prospectus contained therein, the amendments thereto and the definitive proxy statement/prospectus and other documents filed in connection with the Transaction, as these materials will contain important information about TLGY, SC Assets, StablecoinX and the Transaction.

    TLGY’s shareholders and other interested persons will be able to obtain copies of the Registration Statement, including the preliminary proxy statement/prospectus contained therein, the definitive proxy statement/prospectus and other documents filed or that will be filed by TLGY and StablecoinX with the SEC, free of charge, through the website maintained by the SEC at www.sec.gov.

    Forward-Looking Statements

    This press release includes certain statements that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act, and Section 21E of the Exchange Act. Forward-looking statements include, but are not limited to, statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Such forward-looking statements with respect to the proposed Transaction include expectations, hopes, beliefs, intentions, plans, prospects, financial results or strategies regarding SC Assets, StablecoinX, TLGY and the proposed Transaction, statements regarding the anticipated benefits and timing of the completion of the proposed Transaction, the assets held by SC Assets and StablecoinX, the price and volatility of ENA, ENA’s growing prominence as an issuer of digital dollars on-chain, StablecoinX’s listing on any securities exchange, the macro, political and regulatory conditions surrounding ENA, the planned business strategy including StablecoinX’s ability to develop a corporate architecture capable of supporting its treasury initiatives and strategic stake in the Ethena Protocol, plans and use of proceeds, objectives of management for future operations of StablecoinX, the upside potential and opportunity for investors, StablecoinX’s plan for value creation and strategic advantages, market size and growth opportunities, regulatory conditions, technological and market trends, future financial condition and performance and expected financial impacts of the proposed Transaction, the satisfaction of closing conditions to the proposed Transaction and the level of redemptions of TLGY’s public shareholders, and StablecoinX’s expectations, intentions, strategies, assumptions or beliefs about future events, results of operations or performance or that do not solely relate to historical or current facts. Forward-looking statements are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including, but not limited to: the risk that the proposed Transaction may not be completed in a timely manner or at all, which may adversely affect the price of TLGY’s securities; the risk that the proposed Transaction may not be completed by TLGY’s business combination deadline; the failure by the parties to satisfy the conditions to the consummation of the proposed Transaction, including the approval of TLGY’s shareholders and the listing of StablecoinX’s securities on a national securities exchange at closing; failure to realize the anticipated benefits of the proposed Transaction; the level of redemptions by TLGY’s public shareholders, which may reduce the public float of, reduce the liquidity of the trading market of, and/or impact the ability of, the shares of Class A common stock of StablecoinX to be listed in connection with the proposed Transaction; the insufficiency of the third-party fairness opinion for the board of directors of TLGY in determining whether or not to pursue the proposed Transaction; the failure of StablecoinX to obtain or maintain the listing of its securities on any securities exchange after closing of the proposed Transaction; risks associated with TLGY, SC Assets and StablecoinX’s ability to consummate the proposed Transaction timely or at all, including in connection with potential regulatory delays or impediments, changes in ENA prices or for other reasons; costs related to the proposed Transaction and as a result of becoming a public company; changes in business, market, financial, political and regulatory conditions; risks relating to StablecoinX’s anticipated operations and business, including the volatile nature of the price of ENA; the risk that StablecoinX’s stock price will be highly correlated to the price of ENA and the price of ENA may decrease between the signing of the definitive documents for the proposed Transaction and the closing of the proposed Transaction or at any time after the closing of the proposed Transaction; risks associated with TLGY, SC Assets and StablecoinX’s ability to consummate the proposed Transaction timely or at all, including in connection with potential regulatory delays or impediments, changes in ENA prices or for other reasons; risks related to increased competition in the industries in which StablecoinX will operate; risks relating to significant legal, commercial, regulatory and technical uncertainty regarding ENA; risks relating to the treatment of crypto assets for U.S. and foreign tax purposes; risks that after consummation of the proposed Transaction, StablecoinX experiences difficulties managing its growth and expanding operations; the risks that launching and growing StablecoinX’s ENA treasury advisory and services in digital marketing and strategy could be difficult; challenges in implementing StablecoinX’s business plan, due to operational challenges, significant competition and regulation; being considered to be a “shell company” by any stock exchange on which StablecoinX’s Class A Common Stock will be listed or by the SEC, which may impact StablecoinX’s ability to list its securities and restrict reliance on certain rules or forms in connection with the offering, sale or resale of securities; the outcome of any potential legal proceedings that may be instituted against StablecoinX, SC Assets, TLGY or others following announcement of the proposed Transaction, and those risk factors discussed in documents that StablecoinX and/or TLGY has filed, or will file, with the SEC. The foregoing list of risk factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of The Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q that have been and/or will be filed by TLGY with the SEC from time to time, the Registration Statement that will be filed by StablecoinX and TLGY and the proxy statement/prospectus contained therein, and other documents that have been or will be filed by TLGY and StablecoinX from time to time with the SEC. These filings do or will identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. There may be additional risks that neither TLGY, SC Assets nor StablecoinX presently know or that TLGY, SC Assets and StablecoinX currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements.

    Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and each of TLGY, SC Assets, and StablecoinX assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Neither TLGY, SC Assets, nor StablecoinX gives any assurance that any of TLGY, SC Assets, or StablecoinX will achieve their respective expectations. The inclusion of any statement in this press release does not constitute an admission by TLGY, SC Assets or StablecoinX or any other person that the events or circumstances described in such statement are material.

    The terms of the proposed Transaction described in this press release, including any dollar-denominated figures or implied valuations, are based on information as of the date of the signing of the definitive Business Combination Agreement and assume no redemptions from the TLGY trust account. These terms are subject to change, including as a result of fluctuations in the price of ENA prior to closing of the proposed Transaction. There can be no assurance that the final terms at the closing of the Transaction will reflect the figures referenced herein.

    No Offer or Solicitation

    This press release does not constitute (i) a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the Transaction or (ii) an offer to sell, a solicitation of an offer to buy, or a recommendation to purchase, any securities of TLGY, SC Assets, the combined company or any of their respective affiliates. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act, or an exemption therefrom, nor shall any sale of securities in any states or jurisdictions in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction be affected. No securities commission or securities regulatory authority in the United States or any other jurisdiction has in any way passed upon the merits of the Transaction or the accuracy or adequacy of this communication.
    Participants in the Solicitation

    TLGY, SC Assets, StablecoinX and their respective directors and officers may be deemed participants in the solicitation of proxies of TLGY’s shareholders in connection with the Transaction. More detailed information regarding the directors and officers of TLGY, and a description of their interests in TLGY, is contained in TLGY’s filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which was filed with the SEC on March 5, 2025, and is available free of charge at the SEC’s website at www.sec.gov. Information regarding the persons who may, under SEC rules, be deemed participants in the solicitation of proxies of TLGY’s shareholders in connection with the Transaction and other matters to be voted upon at the Extraordinary General Meeting will be set forth in the Registration Statement for the Transaction when available.
    Media Contacts

    StablecoinX
    press@stablecoinx.com

    TLGY Acquisition Corp.
    media@tlgycpc.com

    Ethena Foundation
    nate.johnson@augustco.com

    The MIL Network –

  • MIL-OSI Canada: More primary care on the way for rural Alberta

    Alberta’s government is committed to ensuring Albertans receive the care they need when and where they need it. To strengthen rural health care, grants under two programs have been awarded. These grants support medical resident physicians training in rural and remote communities and help primary care clinics across rural Alberta grow their teams.

    The initiatives include a $16-million pilot bursary program that supports 74 family medicine residents expected to begin practising in rural Alberta between now and July 2027. At the same time, the Rural Team Recruitment Grant will provide $6 million over two years to help clinics hire additional health professionals – such as nurses, pharmacists and physiotherapists – expand care teams and improve access.

    “This is a great example of how we’re delivering real improvements in primary health care. Our bursary program will help bring more family doctors to rural communities, and the team-based care grants mean Albertans will have better access to health professionals who can support their needs. Physicians are choosing to practise in Alberta in record numbers, especially family doctors, and we’re working to make sure they increase access for patients in rural Alberta as well as in the cities.”

    Adriana LaGrange, Minister of Primary and Preventative Health Services

    The Rural Team Recruitment Grant helps clinics and community organizations increase their capacity by hiring non-physician health professionals. These multidisciplinary teams significantly improve access to primary care by ensuring a range of health services are available locally.

    In the first round of funding, 29 clinics across the province will receive support. This includes clinics in Consort, Drumheller, Stettler, Crowsnest Pass, Cold Lake, Grande Cache, Peace River, Delburne, Drayton Valley, Barrhead and Bashaw. Approximately 52 new full-time health professionals are expected to be hired, with a second intake for the grant program opening soon.

    “The Rural Team Recruitment Grant is a meaningful step forward for health care in rural Alberta. When clinics can hire more team members, people get access to the care they need faster and closer to home.”

    Ron Wiebe, parliamentary secretary for rural health (north)

    The Rural and Remote Family Medicine Resident Physician Bursary Pilot Program is helping attract and retain doctors in Alberta’s rural and remote communities. It provides bursaries of $125,000 for rural placements and $200,000 for remote placements to residents who commit to working in eligible communities after completing their training.

    Bursaries are available to medical students from any Canadian university who have matched to a family medicine residency program at the University of Alberta or the University of Calgary. Residents can apply at any point during their training. Applications are being accepted until early 2026 or until all funding is committed.

    Resident physicians are more likely to stay and practise in the communities where they complete their residency, making this program a key step toward building sustainable, long-term access to primary care in rural and remote areas.

    “This bursary is an investment in Alberta’s future. It gives resident physicians the support they need while helping rural and remote communities attract and keep family doctors.”

    Justin Wright, parliamentary secretary for rural health (south)

    “This bursary is a significant step in strengthening retention in rural and remote family medicine practice. Resident physicians are the future of our physician workforce; fair and competitive retention initiatives will ensure all Albertans have access to the high-quality health care they deserve.”

    Dr. Sia Zare-Zadeh, president, Professional Association of Resident Physicians of Alberta (PARA)

    Quick facts

    • These programs are key components of the Rural Health Action Plan and align with the Modernizing Alberta’s Primary Care System (MAPS) report.
    • Funding is through the Canada-Alberta agreement to improve health care, including in rural and remote areas.

    Related information

    • Modernizing Alberta’s Primary Health Care System (MAPS)
    • Primary health care grants
    • Rural and Remote Family Medicine Resident Physician Bursary
    • Rural Health Action Plan

    Related news

    • Strengthening primary health care across Alberta (Nov. 5, 2024)
    • Leading primary care into the future (Oct. 15, 2024)
    • Improving health care in rural and remote Alberta (Oct. 3, 2024
    • Strengthening health care: Improving access for all (Oct. 18, 2023)

    MIL OSI Canada News –

  • MIL-OSI USA: Carbajal Hosts House Agriculture Committee’s Top Democrat in Santa Barbara, Carpinteria

    Source: United States House of Representatives – Representative Salud Carbajal (CA-24)

    On July 19th, U.S. Representative Salud Carbajal (D-CA-24), a member of the House Agriculture Committee, hosted the Committee’s Ranking Member Angie Craig (D-MN-02) in Santa Barbara and Carpinteria. The lawmakers organized roundtable discussions with local farmers, agriculture groups, community associations, and government officials to discuss wildfire prevention, federal support for specialty crops, farm automation, and more. Download photos here.

    “I was honored to welcome Ranking Member Craig to the Central Coast for productive conversations with our local agricultural community and stakeholders focused on wildfire prevention,” said Rep. Carbajal. “The Central Coast is one of our nation’s agricultural powerhouses, but it’s not immune to the challenges posed by climate change and macroeconomic conditions. That’s why Ranking Member Craig and I held a series of roundtable discussions with local farmers, agriculture groups, community associations, and government officials. We talked about collaborative solutions for mitigating wildfires and other environmental threats, while exploring opportunities for the federal government to help ensure Central Coast agriculture remains globally competitive.”

    “I thank Representative Carbajal for inviting me to California’s 24th Congressional District to meet with stakeholders from across the forest management and specialty crop sectors. It is always valuable to hear directly from specialty crop producers, and it was particularly eye-opening to learn from the experiences of wildfire experts on the ground – as firefighters battle three wildfires burning in northern Minnesota. I will lean on their insights as we continue searching for a path forward for the farmers left behind by the Republican budget. The conversations I had with folks today reflected an urgent need for congressional oversight of the USDA – whose mass layoffs have left communities vulnerable as we enter peak wildfire season – and investments in programs that support the specialty crop farmers who feed our families,” said Ranking Member Angie Craig.

    Carbajal and Craig held their first roundtable at the Santa Barbara Botanical Gardens, where they discussed wildfire prevention for the Los Padres National Forest and surrounding communities. The group explored proactive measures — such as fuels management, community education, interagency coordination, and infrastructure resilience — to reduce the risk of catastrophic wildfires. Policies and partnerships that safeguard lives, property, and landscapes along the Los Padres forest boundary and beyond are critical. 

    The roundtable’s participants included representatives from: the Santa Barbara Botanic Garden, Los Padres National Forest, Santa Barbara County Fire Department, Santa Barbara City Fire, Santa Barbara County Board of Supervisors, Santa Barbara Fire Safe Council, Mission Canyon Association, Montecito Association, Cal Poly Wildfire, Los Padres Forest Watch, and Project for Resilient Communities.

    The second roundtable was held at Reiter’s Peak-Flynn Ranch in Carpinteria, where the group discussed the unique nature of Central Coast agriculture, research in mechanization, the federal specialty crop block grant program, labor shortages, trade, and more. 

    The roundtable’s participants included representatives from: Reiter Affiliated Companies, Santa Barbara County Flower & Nursery Growers Association, California Avocado Commission, Grower-Shipper Association of Santa Barbara and San Luis Obispo Counties, Santa Barbara County Agricultural Advisory Committee, California Farm Bureau, Santa Barbara County Farm Bureau, Ventura County Farm Bureau, and Santa Barbara County Agricultural Commissioner.

    MIL OSI USA News –

  • MIL-OSI: Fortinet Honors the Life and Contributions of Valued Board Member William H. Neukom

    Source: GlobeNewswire (MIL-OSI)

    SUNNYVALE, Calif., July 21, 2025 (GLOBE NEWSWIRE) — Fortinet® (NASDAQ: FTNT), the global cybersecurity leader driving the convergence of networking and security, today announced the passing of William H. “Bill” Neukom, a distinguished member of Fortinet’s Board of Directors since 2013. During his tenure, Bill provided unwavering leadership, thoughtful guidance, and mentorship that anchored the company through years of significant growth.

    The Fortinet Board of Directors issues the following statement: “We are profoundly saddened by the passing of Bill Neukom. His contributions to Fortinet and to the technology industry are immeasurable, and he will be deeply missed as a friend and colleague across our entire organization. Bill embodied a combination of vision, intellect, and warmth. He brought extraordinary insight and dedication to every discussion, always rooted in integrity, accountability, and a deep commitment to people and purpose. We extend our heartfelt condolences to Bill’s family, friends, and all those fortunate enough to have worked alongside him. He will be dearly missed and always remembered.” 

    Bill’s legacy extends far beyond Fortinet’s boardroom, bringing a lifetime of experience, including from his time at Microsoft, where he served as the company’s first general counsel, and as founder and CEO of the World Justice Project, a global nonprofit devoted to promoting the rule of law. His lifelong work elevated the importance of corporate responsibility, customer trust, and technology’s role in society. His leadership, character, and contributions will remain a lasting part of Fortinet’s legacy.

    About Fortinet (www.fortinet.com)
    Fortinet (Nasdaq: FTNT) is a driving force in the evolution of cybersecurity and the convergence of networking and security. Our mission is to secure people, devices, and data everywhere, and today we deliver cybersecurity everywhere our customers need it with the largest integrated portfolio of over 50 enterprise-grade products. Well over half a million customers trust Fortinet’s solutions, which are among the most deployed, most patented, and most validated in the industry. The Fortinet Training Institute, one of the largest and broadest training programs in the industry, is dedicated to making cybersecurity training and new career opportunities available to everyone. Collaboration with esteemed organizations from both the public and private sectors, including Computer Emergency Response Teams (CERTS), government entities, and academia, is a fundamental aspect of Fortinet’s commitment to enhance cyber resilience globally. FortiGuard Labs, Fortinet’s elite threat intelligence and research organization, develops and utilizes leading-edge machine learning and AI technologies to provide customers with timely and consistently top-rated protection and actionable threat intelligence. Learn more at https://www.fortinet.com, the Fortinet Blog, and FortiGuard Labs.

    Copyright © 2025 Fortinet, Inc. All rights reserved. The symbols ® and ™ denote respectively federally registered trademarks and common law trademarks of Fortinet, Inc., its subsidiaries and affiliates. Fortinet’s trademarks include, but are not limited to, the following: Fortinet, the Fortinet logo, FortiGate, FortiOS, FortiGuard, FortiCare, FortiAnalyzer, FortiManager, FortiASIC, FortiClient, FortiCloud, FortiMail, FortiSandbox, FortiADC, FortiAgent, FortiAI, FortiAIOps, FortiAgent, FortiAntenna, FortiAP, FortiAPCam, FortiAuthenticator, FortiCache, FortiCall, FortiCam, FortiCamera, FortiCarrier, FortiCASB, FortiCentral, FortiCNP, FortiConnect, FortiController, FortiConverter, FortiCSPM, FortiCWP, FortiDAST, FortiDB, FortiDDoS, FortiDeceptor, FortiDeploy, FortiDevSec, FortiDLP, FortiEdge, FortiEDR, FortiEndpoint FortiExplorer, FortiExtender, FortiFirewall, FortiFlex FortiFone, FortiGSLB, FortiGuest, FortiHypervisor, FortiInsight, FortiIsolator, FortiLAN, FortiLink, FortiMonitor, FortiNAC, FortiNDR, FortiPAM, FortiPenTest, FortiPhish, FortiPoint, FortiPolicy, FortiPortal, FortiPresence, FortiProxy, FortiRecon, FortiRecorder, FortiSASE, FortiScanner, FortiSDNConnector, FortiSEC, FortiSIEM, FortiSMS, FortiSOAR, FortiSRA, FortiStack, FortiSwitch, FortiTester, FortiToken, FortiTrust, FortiVoice, FortiWAN, FortiWeb, FortiWiFi, FortiWLC, FortiWLM, FortiXDR and Lacework FortiCNAPP. Other trademarks belong to their respective owners. Fortinet has not independently verified statements or certifications herein attributed to third parties and Fortinet does not independently endorse such statements. Notwithstanding anything to the contrary herein, nothing herein constitutes a warranty, guarantee, contract, binding specification or other binding commitment by Fortinet or any indication of intent related to a binding commitment, and performance and other specification information herein may be unique to certain environments.

    The MIL Network –

  • MIL-OSI: RBB Bancorp Reports Second Quarter 2025 Earnings and Declares Quarterly Cash Dividend of $0.16 Per Common Share

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, July 21, 2025 (GLOBE NEWSWIRE) — RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the “Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as the “Company,” announced financial results for the quarter ended June 30, 2025.

    Second Quarter 2025 Highlights

    • Net income totaled $9.3 million, or $0.52 diluted earnings per share
    • Return on average assets of 0.93%, compared to 0.24% for the quarter ended March 31, 2025
    • Net interest margin expanded to 2.92%, up from 2.88% for the quarter ended March 31, 2025
    • Net loans held for investment growth of $91.6 million, or 12% annualized
    • Nonperforming assets decreased $3.6 million, or 5.5%, to $61.0 million at June 30, 2025, down from $64.6 million at March 31, 2025
    • Book value and tangible book value per share(1) increased to $29.25 and $25.11 at June 30, 2025, up from $28.77 and $24.63 at March 31, 2025

    The Company reported net income of $9.3 million, or $0.52 diluted earnings per share, for the quarter ended June 30, 2025, compared to net income of $2.3 million, or $0.13 diluted earnings per share, for the quarter ended March 31, 2025. Net income for the second quarter of 2025 included income from an Employee Retention Credit (“ERC”) of $5.2 million (pre-tax), which was included in other income, offset partially by professional and advisory costs associated with filing and determining eligibility for the ERC totaling $1.2 million (pre-tax).

    “Another quarter of strong loan growth and stable loan yields drove increasing net interest income and margin expansion in the second quarter,” said Johnny Lee, President and Chief Executive Officer of RBB Bancorp. “We also benefited from the receipt of a $5.2 million ERC in the second quarter. We continue to work through our nonperforming assets and remain focused on resolving our nonperforming loans as quickly as possible while minimizing the impact to earnings and capital.”

    (1 ) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.
         

    Net Interest Income and Net Interest Margin

    Net interest income was $27.3 million for the second quarter of 2025, compared to $26.2 million for the first quarter of 2025. The $1.2 million increase was due to a $1.9 million increase in interest income, offset by a $698,000 increase in interest expense. The increase in interest income was mostly due to a $2.1 million increase in interest and fees on loans. The increase in interest expense was due to a $433,000 increase in interest on borrowings and a $265,000 increase in interest on deposits.

    The net interest margin (“NIM”) was 2.92% for the second quarter of 2025, an increase of 4 basis points from 2.88% for the first quarter of 2025. The NIM expansion was due to a 3 basis point increase in the yield on average interest-earning assets, combined with a 1 basis point decrease in the overall cost of funds. The yield on average interest-earning assets increased to 5.79% for the second quarter of 2025 from 5.76% for the first quarter of 2025 due mainly to a 2 basis point increase in the yield on average loans to 6.03%. Average loans represented 85% of average interest-earning assets in the second quarter of 2025, as compared to 84% in the first quarter of 2025.

    The average cost of funds decreased to 3.14% for the second quarter of 2025 from 3.15% for the first quarter of 2025, driven by an 11 basis point decrease in the average cost of interest-bearing deposits, partially offset by a 75 basis point increase in the average cost of total borrowings. The average cost of interest-bearing deposits decreased to 3.66% for the second quarter of 2025 from 3.77% for the first quarter of 2025. The overall funding mix for the second quarter of 2025 remained relatively unchanged from the first quarter of 2025 with total deposits representing 90% of interest bearing liabilities and average noninterest-bearing deposits representing 17% of average total deposits. The average cost of borrowings increased as $150 million in long term FHLB advances matured during the first quarter of 2025, the majority of which were replaced and repriced at current market rates. The all-in average spot rate for total deposits was 2.95% at June 30, 2025.

    Provision for Credit Losses

    The provision for credit losses was $2.4 million for the second quarter of 2025 compared to $6.7 million for the first quarter of 2025. The second quarter of 2025 provision for credit losses reflected an increase in general reserves of $1.5 million due mainly to net loan growth, and an increase in a specific reserve of $924,000 related to one lending relationship. The second quarter provision also took into consideration factors such as changes in the outlook for economic conditions and market interest rates, and changes in credit quality metrics, including changes in loans 30-89 days past due, nonperforming loans, special mention and substandard loans during the period. Net charge-offs of $3.3 million in the second quarter related to loans which had these specific reserves at March 31, 2025. Net charge-offs on an annualized basis represented 0.42% of average loans for the second quarter of 2025 compared to 0.35% for the first quarter of 2025.

    Noninterest Income

    Noninterest income for the second quarter of 2025 was $8.5 million, an increase of $6.2 million from $2.3 million for the first quarter of 2025. The second quarter of 2025 included other income of $5.2 million for the receipt of ERC funds from the IRS. The ERC was a grant program established under the Coronavirus Aid, Relief, and Economic Security Act in response to the COVID-19 pandemic and these funds relate to qualifying amended payroll tax returns the Company filed for the first and second quarters of 2021.

    Upon receipt of the ERC funds, certain professional and tax advisory costs associated with the assessment and compilation of the ERC refunds became due and payable. These amounts totaled $1.2 million and are included in legal and professional expense in our consolidated statements of income for the second quarter of 2025. There were no such ERC amounts received or associated costs recognized during the first quarter of 2025 or the quarter ended June 30, 2024.

    The second quarter of 2025 also included a higher gain on sale of loans of $277,000 and recoveries associated with a fully-charged off loan acquired in a bank acquisition of $350,000, the latter included in “other income.”

    Noninterest Expense

    Noninterest expense for the second quarter of 2025 was $20.5 million, an increase of $2.0 million from $18.5 million for the first quarter of 2025. This increase was mostly due to higher legal and professional expense of $1.4 million, of which $1.2 million was attributed to the aforementioned ERC advisory costs, and a $437,000 increase in salaries and employee benefits expenses. The increase in compensation includes higher incentives related to sustained production levels, the impact of annual pay increases, and approximately $330,000 in costs related to executive management transitions, offset by lower payroll taxes. The efficiency ratio was 57.2% for the second quarter of 2025, down from 65.1% for the first quarter of 2025 due mostly to higher noninterest income related to the ERC, partially offset by higher noninterest expense related to the ERC advisory costs.

    Income Taxes

    The effective tax rate was 27.8% for the second quarter of 2025 and 28.2% for the first quarter of 2025. 

    Balance Sheet

    At June 30, 2025, total assets were $4.1 billion, an $80.6 million increase compared to March 31, 2025, and a $221.9 million increase compared to June 30, 2024.

    Loan and Securities Portfolio

    Loans held for investment (“HFI”) totaled $3.2 billion as of June 30, 2025, an increase of $91.6 million, or 12% annualized, compared to March 31, 2025 and an increase of $187.0 million, or 6.1%, compared to June 30, 2024. The second quarter of 2025 net loan growth included $182.8 million in new production with an average yield of 6.76%. The increase from March 31, 2025 was primarily due to a $57.3 million increase in single-family residential (“SFR”) mortgage loans, a $28.0 million increase in commercial real estate (“CRE”) loans, a $5.3 million increase in Small Business Administration (“SBA”) loans and a $2.7 million increase in commercial and industrial (“C&I”) loans. The loan to deposit ratio was 101.5% at June 30, 2025, compared to 100.0% at March 31, 2025 and 100.9% at June 30, 2024. 

    As of June 30, 2025, available for sale securities (“AFS”) totaled $413.1 million, an increase of $35.0 million from March 31, 2025, primarily related to purchases of $68.0 million, offset by maturities and amortization of $33.0 million during the second quarter of 2025. As of June 30, 2025, net unrealized losses totaled $23.1 million, a $1.9 million decrease, when compared to net unrealized losses of $25.0 million as of March 31, 2025.

    Deposits

    Total deposits were $3.2 billion as of June 30, 2025, an increase of $45.6 million, or 5.8% annualized, compared to March 31, 2025 and an increase of $164.6 million, or 5.4%, compared to June 30, 2024. The increase during the second quarter of 2025 was due to a $29.9 million increase in interest-bearing deposits coupled with a $15.7 million increase in noninterest-bearing deposits. The increase in interest-bearing deposits included increases in time deposits of $59.5 million, offset by decreases in interest-bearing non-maturity deposits of $29.5 million. Wholesale deposits totaled $183.8 million at June 30, 2025, an increase of $25.3 million compared to $158.5 million at March 31, 2025. Noninterest-bearing deposits totaled $543.9 million and represented 17.1% of total deposits at June 30, 2025 compared to $528.2 million and 16.8% at March 31, 2025.

    Credit Quality

    Nonperforming assets totaled $61.0 million, or 1.49% of total assets, at June 30, 2025, down from $64.6 million, or 1.61% of total assets, at March 31, 2025. The $3.6 million decrease in nonperforming assets was due to $3.3 million in net charge-offs and $1.7 million in payoffs and paydowns, partially offset by $1.4 million in additions from loans migrating to nonaccrual status in the second quarter of 2025. Nonperforming assets included one $4.2 million other real estate owned (included in “accrued interest and other assets”) at June 30, 2025 and March 31, 2025.

    Special mention loans totaled $91.3 million, or 2.82% of total loans, at June 30, 2025, up from $64.3 million, or 2.05% of total loans, at March 31, 2025. The $27.0 million increase was primarily due to the addition of loans totaling $30.1 million and $1.6 million in balance increases, partially offset by the downgrade of two CRE loans totaling $4.0 million to substandard-rated loans and payoffs and paydowns totaling $660,000. As of June 30, 2025, all special mention loans were paying current.

    Substandard loans totaled $91.0 million at June 30, 2025, up from $76.4 million at March 31, 2025. The $14.6 million increase was primarily due to the downgrades totaling $20.6 million, partially offset by net charge-offs totaling $3.3 million and payoffs and paydowns totaling $2.7 million. Of the total substandard loans at June 30, 2025, there were $34.2 million on accrual status.

    30-89 day delinquent loans, excluding nonperforming loans, totaled $18.0 million, or 0.56% of total loans, at June 30, 2025, up from $5.9 million, or 0.19% of total loans, at March 31, 2025. The $12.1 million increase was mostly due to $15.5 million in new delinquent loans, offset by $2.2 million in loans returning to current status, $798,000 in loans migrating to nonaccrual status, and $427,000 in paydowns and payoffs. The additions include an $8.5 million CRE loan that has since been brought current.

    As of June 30, 2025, the allowance for credit losses totaled $51.6 million and was comprised of an allowance for loan losses of $51.0 million and a reserve for unfunded commitments of $629,000 (included in “accrued interest and other liabilities”). This compares to the allowance for credit losses of $52.6 million, comprised of an allowance for loan losses of $51.9 million and a reserve for unfunded commitments of $629,000 at March 31, 2025. The $918,000 decrease in the allowance for credit losses for the second quarter of 2025 was due to net charge-offs of $3.3 million, offset by a $2.4 million provision for credit losses. The allowance for loan losses as a percentage of loans HFI decreased to 1.58% at June 30, 2025, compared to 1.65% at March 31, 2025, due mainly to net charge-offs of amounts included in specific reserves at March 31, 2025. The allowance for loan losses as a percentage of nonperforming loans HFI was 90% at June 30, 2025, an increase from 86% at March 31, 2025. 

      For the Three Months Ended June 30, 2025     For the Six Months Ended June 30, 2025  
    (dollars in thousands) Allowance
    for
    loan losses    		     Reserve for
    unfunded
    loan commitments    		     Allowance
    for
    credit losses    		     Allowance
    for loan
    losses    		     Reserve for
    unfunded
    loan
    commitments    		     Allowance
    for credit
    losses    		  
    Beginning balance $ 51,932     $ 629     $ 52,561     $ 47,729     $ 729     $ 48,458  
    Provision for (reversal of) credit losses   2,387       —       2,387       9,233       (100 )     9,133  
    Less loans charged-off   (3,339 )     —       (3,339 )     (6,065 )     —       (6,065 )
    Recoveries on loans charged-off   34       —       34       117       —       117  
    Ending balance $ 51,014     $ 629     $ 51,643     $ 51,014     $ 629     $ 51,643  
     

    Shareholders’ Equity

    At June 30, 2025, total shareholders’ equity was $517.7 million, a $7.3 million increase compared to March 31, 2025, and a $6.4 million increase compared to June 30, 2024. The increase in shareholders’ equity for the second quarter of 2025 was due to net income of $9.3 million, lower net unrealized losses on AFS securities of $1.3 million and equity compensation activity of $1.1 million, offset by common stock cash dividends paid totaling $2.9 million and common stock repurchases totaling $1.5 million. The increase in shareholders’ equity for the last twelve months was due to net income of $23.0 million, lower net unrealized losses on AFS securities of $4.9 million, and equity compensation activity of $2.5 million, offset by common stock repurchases totaling $12.5 million and common stock cash dividends paid totaling $11.5 million. Book value per share and tangible book value per share(1) increased to $29.25 and $25.11 at June 30, 2025, up from $28.77 and $24.63 at March 31, 2025 and up from $28.12 and $24.06 at June 30, 2024.

    Dividend Announcement

    The Board of Directors has declared a quarterly cash dividend of $0.16 per common share. The dividend is payable on August 12, 2025 to shareholders of record on July 31, 2025.

    (1 ) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.
         

    Corporate Overview

    RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of June 30, 2025, the Company had total assets of $4.1 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services predominately to the Asian-centric communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company’s administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company’s website address is www.royalbusinessbankusa.com.

    Conference Call

    Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, July 22, 2025, to discuss the Company’s second quarter 2025 financial results.

    To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, the Participant ID code is 710803, conference ID RBBQ225. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 52690, approximately one hour after the conclusion of the call and will remain available through August 05, 2025.

    The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at www.royalbusinessbankusa.com and click on the “Investors” tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.

    Disclosure

    This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

    Safe Harbor

    Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures; the potential for additional material weaknesses in the Company’s internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been detected; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the United States (“U.S.”) federal budget or debt or turbulence or uncertainly in domestic or foreign financial markets; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; 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; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; failure to comply with debt covenants; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; severe weather, natural disasters, earthquakes, fires, including direct and indirect costs and impacts on clients, the Company and its employees from the January 2025 Los Angeles County wildfires; or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia and Ukraine, in the Middle East, and increasing tensions between China and Taiwan, which could impact business and economic conditions in the U.S. and abroad; tariffs, trade policies, and related tensions, which could impact our clients, specific industry sectors, and/or broader economic conditions and financial market; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions; general economic or business conditions in Asia, and other regions where the Bank has operations; failures, interruptions, or security breaches of our information systems; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the cost of defending against them; our ability to adapt our systems to the expanding use of technology in banking; risk management processes and strategies; adverse results in legal proceedings; the impact of regulatory enforcement actions, if any; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in tax laws and regulations; the impact of governmental efforts to restructure the U.S. financial regulatory system and increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; the impact of changes in the Federal Deposit Insurance Corporation (“FDIC”) insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessments; 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 SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; fluctuations in the Company’s stock price; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California Department of Financial Protection and Innovation; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2024, and particularly the discussion of risk factors within that document. 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.

    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)
     
      June 30,     March 31,     December 31,     September 30,     June 30,  
      2025     2025     2024     2024     2024  
    Assets                                      
    Cash and due from banks $ 27,338     $ 25,315     $ 27,747     $ 26,388     $ 23,313  
    Interest-earning deposits with financial institutions   164,514       213,508       229,998       323,002       229,456  
    Cash and cash equivalents   191,852       238,823       257,745       349,390       252,769  
    Interest-earning time deposits with financial institutions   600       600       600       600       600  
    Investment securities available for sale   413,142       378,188       420,190       305,666       325,582  
    Investment securities held to maturity   4,186       5,188       5,191       5,195       5,200  
    Loans held for sale   –       655       11,250       812       3,146  
    Loans held for investment   3,234,695       3,143,063       3,053,230       3,091,896       3,047,712  
    Allowance for loan losses   (51,014 )     (51,932 )     (47,729 )     (43,685 )     (41,741 )
    Net loans held for investment   3,183,681       3,091,131       3,005,501       3,048,211       3,005,971  
    Premises and equipment, net   23,945       24,308       24,601       24,839       25,049  
    Federal Home Loan Bank (FHLB) stock   15,000       15,000       15,000       15,000       15,000  
    Cash surrender value of bank owned life insurance   61,111       60,699       60,296       59,889       59,486  
    Goodwill   71,498       71,498       71,498       71,498       71,498  
    Servicing assets   6,482       6,766       6,985       7,256       7,545  
    Core deposit intangibles   1,667       1,839       2,011       2,194       2,394  
    Right-of-use assets   25,554       26,779       28,048       29,283       30,530  
    Accrued interest and other assets   91,322       87,926       83,561       70,644       63,416  
    Total assets $ 4,090,040     $ 4,009,400     $ 3,992,477     $ 3,990,477     $ 3,868,186  
    Liabilities and shareholders’ equity                                      
    Deposits:                                      
    Noninterest-bearing demand $ 543,885     $ 528,205     $ 563,012     $ 543,623     $ 542,971  
    Savings, NOW and money market accounts   691,679       721,216       663,034       666,089       647,770  
    Time deposits, $250,000 and under   1,010,674       1,000,106       1,007,452       1,052,462       1,014,189  
    Time deposits, greater than $250,000   941,993       893,101       850,291       830,010       818,675  
    Total deposits   3,188,231       3,142,628       3,083,789       3,092,184       3,023,605  
    FHLB advances   180,000       160,000       200,000       200,000       150,000  
    Long-term debt, net of issuance costs   119,720       119,624       119,529       119,433       119,338  
    Subordinated debentures   15,265       15,211       15,156       15,102       15,047  
    Lease liabilities – operating leases   27,294       28,483       29,705       30,880       32,087  
    Accrued interest and other liabilities   41,877       33,148       36,421       23,150       16,818  
    Total liabilities   3,572,387       3,499,094       3,484,600       3,480,749       3,356,895  
    Shareholders’ equity:                                      
    Common stock   259,863       260,284       259,957       259,280       266,160  
    Additional paid-in capital   3,579       3,360       3,645       3,520       3,456  
    Retained earnings   270,152       263,885       264,460       262,946       262,518  
    Non-controlling interest   72       72       72       72       72  
    Accumulated other comprehensive loss, net   (16,013 )     (17,295 )     (20,257 )     (16,090 )     (20,915 )
    Total shareholders’ equity   517,653       510,306       507,877       509,728       511,291  
    Total liabilities and shareholders’ equity $ 4,090,040     $ 4,009,400     $ 3,992,477     $ 3,990,477     $ 3,868,186  
    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
    (In thousands, except share and per share data)
     
      For the Three Months Ended     For the Six Months Ended  
      June 30,
    2025    		     March 31,
    2025    		     June 30,
    2024    		     June 30,
    2025    		     June 30,
    2024    		  
    Interest and dividend income:                                      
    Interest and fees on loans $ 47,687     $ 45,621     $ 45,320     $ 93,308     $ 90,867  
    Interest on interest-earning deposits   1,750       2,014       3,353       3,764       8,393  
    Interest on investment securities   4,213       4,136       3,631       8,349       7,242  
    Dividend income on FHLB stock   324       330       327       654       658  
    Interest on federal funds sold and other   231       235       255       466       521  
    Total interest and dividend income   54,205       52,336       52,886       106,541       107,681  
    Interest expense:                                      
    Interest on savings deposits, NOW and money market accounts   4,567       4,468       4,953       9,035       9,431  
    Interest on time deposits   19,250       19,084       21,850       38,334       45,172  
    Interest on long-term debt and subordinated debentures   1,634       1,632       1,679       3,266       3,358  
    Interest on FHLB advances   1,420       989       439       2,409       878  
    Total interest expense   26,871       26,173       28,921       53,044       58,839  
    Net interest income before provision for credit losses   27,334       26,163       23,965       53,497       48,842  
    Provision for credit losses   2,387       6,746       557       9,133       557  
    Net interest income after provision for credit losses   24,947       19,417       23,408       44,364       48,285  
    Noninterest income:                                      
    Service charges and fees   1,060       1,017       1,064       2,077       2,056  
    Gain on sale of loans   358       81       451       439       763  
    Loan servicing fees, net of amortization   541       588       579       1,129       1,168  
    Increase in cash surrender value of life insurance   411       403       385       814       767  
    Gain on OREO   —       —       292       —       1,016  
    Other income   6,108       206       717       6,314       1,090  
    Total noninterest income   8,478       2,295       3,488       10,773       6,860  
    Noninterest expense:                                      
    Salaries and employee benefits   11,080       10,643       9,533       21,723       19,460  
    Occupancy and equipment expenses   2,377       2,407       2,439       4,784       4,882  
    Data processing   1,713       1,602       1,466       3,315       2,886  
    Legal and professional   2,904       1,515       1,260       4,419       2,140  
    Office expenses   405       408       352       813       708  
    Marketing and business promotion   212       197       189       409       361  
    Insurance and regulatory assessments   709       730       981       1,439       1,963  
    Core deposit premium   172       172       201       344       402  
    Other expenses   921       848       703       1,769       1,291  
    Total noninterest expense   20,493       18,522       17,124       39,015       34,093  
    Income before income taxes   12,932       3,190       9,772       16,122       21,052  
    Income tax expense   3,599       900       2,527       4,499       5,771  
    Net income $ 9,333     $ 2,290     $ 7,245     $ 11,623     $ 15,281  
                                           
    Net income per share                                      
    Basic $ 0.53     $ 0.13     $ 0.39     $ 0.66     $ 0.83  
    Diluted $ 0.52     $ 0.13     $ 0.39     $ 0.65     $ 0.82  
    Cash dividends declared per common share $ 0.16     $ 0.16     $ 0.16     $ 0.32     $ 0.32  
    Weighted-average common shares outstanding                                      
    Basic   17,746,607       17,727,712       18,375,970       17,737,212       18,488,623  
    Diluted   17,797,735       17,770,588       18,406,897       17,784,237       18,529,299  
    RBB BANCORP AND SUBSIDIARIES
    AVERAGE BALANCE SHEET AND NET INTEREST INCOME
    (Unaudited)
     
      For the Three Months Ended  
      June 30, 2025     March 31, 2025     June 30, 2024  
      Average     Interest     Yield /     Average     Interest     Yield /     Average     Interest     Yield /  
    (tax-equivalent basis, dollars in thousands) Balance     & Fees     Rate     Balance     & Fees     Rate     Balance     & Fees     Rate  
    Interest-earning assets                                                                      
    Cash and cash equivalents(1) $ 163,838     $ 1,980       4.85 %   $ 194,236     $ 2,249       4.70 %   $ 255,973     $ 3,608       5.67 %
    FHLB Stock   15,000       324       8.66 %     15,000       330       8.92 %     15,000       327       8.77 %
    Securities                                                                      
    Available for sale(2)   399,414       4,189       4.21 %     390,178       4,113       4.28 %     318,240       3,608       4.56 %
    Held to maturity(2)   5,028       48       3.83 %     5,189       49       3.83 %     5,203       46       3.56 %
    Total loans(3)   3,171,570       47,687       6.03 %     3,079,224       45,621       6.01 %     3,017,050       45,320       6.04 %
    Total interest-earning assets   3,754,850     $ 54,228       5.79 %     3,683,827     $ 52,362       5.76 %     3,611,466     $ 52,909       5.89 %
    Total noninterest-earning assets   254,029                       260,508                       240,016                  
    Total average assets $ 4,008,879                     $ 3,944,335                     $ 3,851,482                  
                                                                           
    Interest-bearing liabilities                                                                      
    NOW $ 66,755       368       2.21 %   $ 61,222     $ 321       2.13 %   $ 56,081     $ 276       1.98 %
    Money market   482,669       3,774       3.14 %     463,443       3,625       3.17 %     431,559       3,877       3.61 %
    Saving deposits   141,411       425       1.21 %     155,116       522       1.36 %     164,913       800       1.95 %
    Time deposits, $250,000 and under   996,249       9,768       3.93 %     989,622       10,046       4.12 %     1,049,666       12,360       4.74 %
    Time deposits, greater than $250,000   922,540       9,482       4.12 %     864,804       9,038       4.24 %     772,255       9,490       4.94 %
    Total interest-bearing deposits   2,609,624       23,817       3.66 %     2,534,207       23,552       3.77 %     2,474,474       26,803       4.36 %
    FHLB advances   159,286       1,420       3.58 %     176,833       989       2.27 %     150,000       439       1.18 %
    Long-term debt   119,657       1,296       4.34 %     119,562       1,295       4.39 %     119,275       1,296       4.37 %
    Subordinated debentures   15,230       338       8.90 %     15,175       337       9.01 %     15,011       383       10.26 %
    Total interest-bearing liabilities   2,903,797       26,871       3.71 %     2,845,777       26,173       3.73 %     2,758,760       28,921       4.22 %
    Noninterest-bearing liabilities                                                                      
    Noninterest-bearing deposits   526,113                       520,145                       529,450                  
    Other noninterest-bearing liabilities   65,278                       66,151                       51,087                  
    Total noninterest-bearing liabilities   591,391                       586,296                       580,537                  
    Shareholders’ equity   513,691                       512,262                       512,185                  
    Total liabilities and shareholders’ equity $ 4,008,879                     $ 3,944,335                     $ 3,851,482                  
    Net interest income / interest rate spreads         $ 27,357       2.08 %           $ 26,189       2.03 %           $ 23,988       1.67 %
    Net interest margin                   2.92 %                     2.88 %                     2.67 %
                                                                           
    Total cost of deposits $ 3,135,737     $ 23,817       3.05 %   $ 3,054,352     $ 23,552       3.13 %   $ 3,003,924     $ 26,803       3.59 %
    Total cost of funds $ 3,429,910     $ 26,871       3.14 %   $ 3,365,922     $ 26,173       3.15 %   $ 3,288,210     $ 28,921       3.54 %

    ___________

    (1 ) Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
    (2 ) Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
    (3 ) Average loan balances relate to loans held for investment and loans held for sale and include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.
    RBB BANCORP AND SUBSIDIARIES
    AVERAGE BALANCE SHEET AND NET INTEREST INCOME
    (Unaudited)
     
      Six Months Ended June 30,  
      2025     2024  
      Average     Interest     Yield /     Average     Interest     Yield /  
    (tax-equivalent basis, dollars in thousands) Balance     & Fees     Rate     Balance     & Fees     Rate  
    Interest-earning assets                                              
    Cash and cash equivalents(1) $ 178,953     $ 4,230       4.77 %   $ 310,476     $ 8,914       5.77 %
    FHLB Stock   15,000       654       8.79 %     15,000       658       8.82 %
    Securities                                              
    Available for sale(2)   394,822       8,302       4.24 %     319,127       7,197       4.54 %
    Held to maturity(2)   5,108       97       3.83 %     5,205       94       3.63 %
    Total loans(3)   3,125,652       93,308       6.02 %     3,017,737       90,867       6.06 %
    Total interest-earning assets   3,719,535     $ 106,591       5.78 %     3,667,545     $ 107,730       5.91 %
    Total noninterest-earning assets   257,250                       243,178                  
    Total average assets $ 3,976,785                     $ 3,910,723                  
                                                   
    Interest-bearing liabilities                                              
    NOW $ 64,004       689       2.17 %   $ 57,513     $ 574       2.01 %
    Money market   473,109       7,399       3.15 %     421,655       7,403       3.53 %
    Saving deposits   148,225       947       1.29 %     161,070       1,454       1.82 %
    Time deposits, $250,000 and under   992,954       19,815       4.02 %     1,112,735       26,165       4.73 %
    Time deposits, greater than $250,000   893,832       18,519       4.18 %     778,713       19,007       4.91 %
    Total interest-bearing deposits   2,572,124       47,369       3.71 %     2,531,686       54,603       4.34 %
    FHLB advances   168,011       2,409       2.89 %     150,000       878       1.18 %
    Long-term debt   119,610       2,591       4.37 %     119,228       2,591       4.37 %
    Subordinated debentures   15,203       675       8.95 %     14,984       767       10.29 %
    Total interest-bearing liabilities   2,874,948       53,044       3.72 %     2,815,898       58,839       4.20 %
    Noninterest-bearing liabilities                                              
    Noninterest-bearing deposits   523,145                       528,898                  
    Other noninterest-bearing liabilities   65,711                       53,441                  
    Total noninterest-bearing liabilities   588,856                       582,339                  
    Shareholders’ equity   512,981                       512,486                  
    Total liabilities and shareholders’ equity $ 3,976,785                     $ 3,910,723                  
    Net interest income / interest rate spreads         $ 53,547       2.06 %           $ 48,891       1.71 %
    Net interest margin                   2.90 %                     2.68 %
                                                   
    Total cost of deposits $ 3,095,269     $ 47,369       3.09 %   $ 3,060,584     $ 54,603       3.59 %
    Total cost of funds $ 3,398,093     $ 53,044       3.15 %   $ 3,344,796     $ 58,839       3.54 %

    ___________

    (1 ) Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
    (2 ) Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
    (3 ) Average loan balances relate to loans held for investment and loans held for sale and include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.
    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
     
      At or for the Three Months Ended     At or for the Six Months Ended June 30,  
      June 30,     March 31,     June 30,                  
      2025     2025     2024     2025     2024  
    Per share data (common stock)                                      
    Book value $ 29.25     $ 28.77     $ 28.12     $ 29.25     $ 28.12  
    Tangible book value(1) $ 25.11     $ 24.63     $ 24.06     $ 25.11     $ 24.06  
    Performance ratios                                      
    Return on average assets, annualized   0.93 %     0.24 %     0.76 %     0.59 %     0.79 %
    Return on average shareholders’ equity, annualized   7.29 %     1.81 %     5.69 %     4.57 %     6.00 %
    Return on average tangible common equity, annualized(1)   8.50 %     2.12 %     6.65 %     5.33 %     7.01 %
    Noninterest income to average assets, annualized   0.85 %     0.24 %     0.36 %     0.55 %     0.35 %
    Noninterest expense to average assets, annualized   2.05 %     1.90 %     1.79 %     1.98 %     1.75 %
    Yield on average earning assets   5.79 %     5.76 %     5.89 %     5.78 %     5.91 %
    Yield on average loans   6.03 %     6.01 %     6.04 %     6.02 %     6.06 %
    Cost of average total deposits(2)   3.05 %     3.13 %     3.59 %     3.09 %     3.59 %
    Cost of average interest-bearing deposits   3.66 %     3.77 %     4.36 %     3.71 %     4.34 %
    Cost of average interest-bearing liabilities   3.71 %     3.73 %     4.22 %     3.72 %     4.20 %
    Net interest spread   2.08 %     2.03 %     1.67 %     2.06 %     1.71 %
    Net interest margin   2.92 %     2.88 %     2.67 %     2.90 %     2.68 %
    Efficiency ratio(3)   57.22 %     65.09 %     62.38 %     60.70 %     61.21 %
    Common stock dividend payout ratio   30.19 %     123.08 %     41.03 %     48.48 %     38.55 %

    ___________

    (1 ) Non-GAAP measure. See Non–GAAP reconciliations set forth at the end of this press release.
    (2 ) Total deposits include non-interest bearing deposits and interest-bearing deposits.
    (3 ) Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income.
    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands)
     
      At or for the quarter ended  
      June 30,     March 31,     June 30,  
      2025     2025     2024  
    Credit Quality Data:                      
    Special mention loans $ 91,317     $ 64,279     $ 19,520  
    Special mention loans to total loans HFI   2.82 %     2.05 %     0.64 %
    Substandard loans $ 91,019     $ 76,372     $ 63,076  
    Substandard loans to total loans HFI   2.81 %     2.43 %     2.07 %
    Loans 30-89 days past due, excluding nonperforming loans $ 18,003     $ 5,927     $ 11,270  
    Loans 30-89 days past due, excluding nonperforming loans, to total loans   0.56 %     0.19 %     0.37 %
    Nonperforming loans $ 56,817     $ 60,380     $ 54,589  
    OREO $ 4,170     $ 4,170     $ —  
    Nonperforming assets $ 60,987     $ 64,550     $ 54,589  
    Nonperforming loans to total loans HFI   1.76 %     1.92 %     1.79 %
    Nonperforming assets to total assets   1.49 %     1.61 %     1.41 %
                           
    Allowance for loan losses $ 51,014     $ 51,932     $ 41,741  
    Allowance for loan losses to total loans HFI   1.58 %     1.65 %     1.37 %
    Allowance for loan losses to nonperforming loans HFI   89.79 %     86.01 %     76.46 %
    Net charge-offs $ 3,305     $ 2,643     $ 551  
    Net charge-offs to average loans   0.42 %     0.35 %     0.07 %
                           
    Capitalratios(1)                      
    Tangible common equity to tangible assets(2)   11.07 %     11.10 %     11.53 %
    Tier 1 leverage ratio   12.04 %     12.07 %     12.48 %
    Tier 1 common capital to risk-weighted assets   17.61 %     17.87 %     18.89 %
    Tier 1 capital to risk-weighted assets   18.17 %     18.45 %     19.50 %
    Total capital to risk-weighted assets   24.00 %     24.42 %     25.67 %

    ___________

    (1 ) June 30, 2025 capital ratios are preliminary.
    (2 ) Non-GAAP measure. See Non-GAAP reconciliations set forth at the end of this press release.
    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
     
    Loan Portfolio Detail As of June 30, 2025   As of March 31, 2025     As of June 30, 2024  
    (dollars in thousands) $   %   $     %     $     %  
    Loans:                                          
    Commercial and industrial $ 138,263       4.3 %   $ 135,538       4.3 %   $ 126,649       4.2 %
    SBA   55,984       1.7 %     50,651       1.6 %     50,323       1.7 %
    Construction and land development   157,970       4.9 %     158,883       5.1 %     202,459       6.6 %
    Commercial real estate(1)   1,273,442       39.4 %     1,245,402       39.6 %     1,190,207       39.1 %
    Single-family residential mortgages   1,603,114       49.6 %     1,545,822       49.2 %     1,467,802       48.2 %
    Other loans   5,922       0.1 %     6,767       0.2 %     10,272       0.2 %
    Total loans $ 3,234,695       100.0 %   $ 3,143,063       100.0 %   $ 3,047,712       100.0 %
    Allowance for loan losses   (51,014 )         (51,932 )             (41,741 )        
    Total loans, net $ 3,183,681         $ 3,091,131             $ 3,005,971          

    ___________

    (1 ) Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans.
    Deposits As of June 30, 2025   As of March 31, 2025     As of June 30, 2024  
    (dollars in thousands) $   %   $   %     $   %  
    Deposits:                                          
    Noninterest-bearing demand $ 543,885       17.1 %   $ 528,205       16.8 %   $ 542,971       18.0 %
    Savings, NOW and money market accounts   691,679       21.7 %     721,216       22.9 %     647,770       21.4 %
    Time deposits, $250,000 and under   848,379       26.6 %     863,962       27.5 %     921,712       30.5 %
    Time deposits, greater than $250,000   920,481       28.8 %     870,708       27.8 %     790,478       26.1 %
    Wholesale deposits(1)   183,807       5.8 %     158,537       5.0 %     120,674       4.0 %
    Total deposits $ 3,188,231       100.0 %   $ 3,142,628       100.0 %   $ 3,023,605       100.0 %

    ___________

    (1 ) Includes brokered deposits, collateralized deposits from the State of California, and deposits acquired through internet listing services.

    Non-GAAP Reconciliations

    Tangible Book Value Reconciliations

    Tangible book value per share is a non-GAAP disclosure. Management measures tangible book value per share to assess the Company’s capital strength and business performance and believes this is helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of as of the dates indicated.

                         
    (dollars in thousands, except share and per share data) June 30, 2025     March 31, 2025     June 30, 2024  
    Tangible common equity:                      
    Total shareholders’ equity $ 517,653     $ 510,306     $ 511,291  
    Adjustments                      
    Goodwill   (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible   (1,667 )     (1,839 )     (2,394 )
    Tangible common equity $ 444,488     $ 436,969     $ 437,399  
    Tangible assets:                      
    Total assets-GAAP $ 4,090,040     $ 4,009,400     $ 3,868,186  
    Adjustments                      
    Goodwill   (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible   (1,667 )     (1,839 )     (2,394 )
    Tangible assets $ 4,016,875     $ 3,936,063     $ 3,794,294  
    Common shares outstanding   17,699,091       17,738,628       18,182,154  
    Common equity to assets ratio   12.66 %     12.73 %     13.22 %
    Tangible common equity to tangible assets ratio   11.07 %     11.10 %     11.53 %
    Book value per share $ 29.25     $ 28.77     $ 28.12  
    Tangible book value per share $ 25.11     $ 24.63     $ 24.06  

    Return on Average Tangible Common Equity

    Management measures return on average tangible common equity (“ROATCE”) to assess the Company’s capital strength and business performance and believes this is helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights) and is reviewed by banking and financial institution regulators when assessing a financial institution’s capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure:

      Three Months Ended     Six Months Ended June 30,  
    (dollars in thousands) June 30, 2025     March 31, 2025     June 30, 2024     2025     2024  
    Net income available to common shareholders $ 9,333     $ 2,290     $ 7,245     $ 11,623     $ 15,281  
    Average shareholders’ equity   513,691       512,262       512,185       512,981       512,486  
    Adjustments:                                      
    Average goodwill   (71,498 )     (71,498 )     (71,498 )     (71,498 )     (71,498 )
    Average core deposit intangible   (1,780 )     (1,951 )     (2,525 )     (1,865 )     (2,625 )
    Adjusted average tangible common equity $ 440,413     $ 438,813     $ 438,162     $ 439,618     $ 438,363  
    Return on average common equity, annualized   7.29 %     1.81 %     5.69 %     4.57 %     6.00 %
    Return on average tangible common equity, annualized   8.50 %     2.12 %     6.65 %     5.33 %     7.01 %

    The MIL Network –

  • MIL-OSI: RBB Bancorp Reports Second Quarter 2025 Earnings and Declares Quarterly Cash Dividend of $0.16 Per Common Share

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, July 21, 2025 (GLOBE NEWSWIRE) — RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the “Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as the “Company,” announced financial results for the quarter ended June 30, 2025.

    Second Quarter 2025 Highlights

    • Net income totaled $9.3 million, or $0.52 diluted earnings per share
    • Return on average assets of 0.93%, compared to 0.24% for the quarter ended March 31, 2025
    • Net interest margin expanded to 2.92%, up from 2.88% for the quarter ended March 31, 2025
    • Net loans held for investment growth of $91.6 million, or 12% annualized
    • Nonperforming assets decreased $3.6 million, or 5.5%, to $61.0 million at June 30, 2025, down from $64.6 million at March 31, 2025
    • Book value and tangible book value per share(1) increased to $29.25 and $25.11 at June 30, 2025, up from $28.77 and $24.63 at March 31, 2025

    The Company reported net income of $9.3 million, or $0.52 diluted earnings per share, for the quarter ended June 30, 2025, compared to net income of $2.3 million, or $0.13 diluted earnings per share, for the quarter ended March 31, 2025. Net income for the second quarter of 2025 included income from an Employee Retention Credit (“ERC”) of $5.2 million (pre-tax), which was included in other income, offset partially by professional and advisory costs associated with filing and determining eligibility for the ERC totaling $1.2 million (pre-tax).

    “Another quarter of strong loan growth and stable loan yields drove increasing net interest income and margin expansion in the second quarter,” said Johnny Lee, President and Chief Executive Officer of RBB Bancorp. “We also benefited from the receipt of a $5.2 million ERC in the second quarter. We continue to work through our nonperforming assets and remain focused on resolving our nonperforming loans as quickly as possible while minimizing the impact to earnings and capital.”

    (1 ) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.
         

    Net Interest Income and Net Interest Margin

    Net interest income was $27.3 million for the second quarter of 2025, compared to $26.2 million for the first quarter of 2025. The $1.2 million increase was due to a $1.9 million increase in interest income, offset by a $698,000 increase in interest expense. The increase in interest income was mostly due to a $2.1 million increase in interest and fees on loans. The increase in interest expense was due to a $433,000 increase in interest on borrowings and a $265,000 increase in interest on deposits.

    The net interest margin (“NIM”) was 2.92% for the second quarter of 2025, an increase of 4 basis points from 2.88% for the first quarter of 2025. The NIM expansion was due to a 3 basis point increase in the yield on average interest-earning assets, combined with a 1 basis point decrease in the overall cost of funds. The yield on average interest-earning assets increased to 5.79% for the second quarter of 2025 from 5.76% for the first quarter of 2025 due mainly to a 2 basis point increase in the yield on average loans to 6.03%. Average loans represented 85% of average interest-earning assets in the second quarter of 2025, as compared to 84% in the first quarter of 2025.

    The average cost of funds decreased to 3.14% for the second quarter of 2025 from 3.15% for the first quarter of 2025, driven by an 11 basis point decrease in the average cost of interest-bearing deposits, partially offset by a 75 basis point increase in the average cost of total borrowings. The average cost of interest-bearing deposits decreased to 3.66% for the second quarter of 2025 from 3.77% for the first quarter of 2025. The overall funding mix for the second quarter of 2025 remained relatively unchanged from the first quarter of 2025 with total deposits representing 90% of interest bearing liabilities and average noninterest-bearing deposits representing 17% of average total deposits. The average cost of borrowings increased as $150 million in long term FHLB advances matured during the first quarter of 2025, the majority of which were replaced and repriced at current market rates. The all-in average spot rate for total deposits was 2.95% at June 30, 2025.

    Provision for Credit Losses

    The provision for credit losses was $2.4 million for the second quarter of 2025 compared to $6.7 million for the first quarter of 2025. The second quarter of 2025 provision for credit losses reflected an increase in general reserves of $1.5 million due mainly to net loan growth, and an increase in a specific reserve of $924,000 related to one lending relationship. The second quarter provision also took into consideration factors such as changes in the outlook for economic conditions and market interest rates, and changes in credit quality metrics, including changes in loans 30-89 days past due, nonperforming loans, special mention and substandard loans during the period. Net charge-offs of $3.3 million in the second quarter related to loans which had these specific reserves at March 31, 2025. Net charge-offs on an annualized basis represented 0.42% of average loans for the second quarter of 2025 compared to 0.35% for the first quarter of 2025.

    Noninterest Income

    Noninterest income for the second quarter of 2025 was $8.5 million, an increase of $6.2 million from $2.3 million for the first quarter of 2025. The second quarter of 2025 included other income of $5.2 million for the receipt of ERC funds from the IRS. The ERC was a grant program established under the Coronavirus Aid, Relief, and Economic Security Act in response to the COVID-19 pandemic and these funds relate to qualifying amended payroll tax returns the Company filed for the first and second quarters of 2021.

    Upon receipt of the ERC funds, certain professional and tax advisory costs associated with the assessment and compilation of the ERC refunds became due and payable. These amounts totaled $1.2 million and are included in legal and professional expense in our consolidated statements of income for the second quarter of 2025. There were no such ERC amounts received or associated costs recognized during the first quarter of 2025 or the quarter ended June 30, 2024.

    The second quarter of 2025 also included a higher gain on sale of loans of $277,000 and recoveries associated with a fully-charged off loan acquired in a bank acquisition of $350,000, the latter included in “other income.”

    Noninterest Expense

    Noninterest expense for the second quarter of 2025 was $20.5 million, an increase of $2.0 million from $18.5 million for the first quarter of 2025. This increase was mostly due to higher legal and professional expense of $1.4 million, of which $1.2 million was attributed to the aforementioned ERC advisory costs, and a $437,000 increase in salaries and employee benefits expenses. The increase in compensation includes higher incentives related to sustained production levels, the impact of annual pay increases, and approximately $330,000 in costs related to executive management transitions, offset by lower payroll taxes. The efficiency ratio was 57.2% for the second quarter of 2025, down from 65.1% for the first quarter of 2025 due mostly to higher noninterest income related to the ERC, partially offset by higher noninterest expense related to the ERC advisory costs.

    Income Taxes

    The effective tax rate was 27.8% for the second quarter of 2025 and 28.2% for the first quarter of 2025. 

    Balance Sheet

    At June 30, 2025, total assets were $4.1 billion, an $80.6 million increase compared to March 31, 2025, and a $221.9 million increase compared to June 30, 2024.

    Loan and Securities Portfolio

    Loans held for investment (“HFI”) totaled $3.2 billion as of June 30, 2025, an increase of $91.6 million, or 12% annualized, compared to March 31, 2025 and an increase of $187.0 million, or 6.1%, compared to June 30, 2024. The second quarter of 2025 net loan growth included $182.8 million in new production with an average yield of 6.76%. The increase from March 31, 2025 was primarily due to a $57.3 million increase in single-family residential (“SFR”) mortgage loans, a $28.0 million increase in commercial real estate (“CRE”) loans, a $5.3 million increase in Small Business Administration (“SBA”) loans and a $2.7 million increase in commercial and industrial (“C&I”) loans. The loan to deposit ratio was 101.5% at June 30, 2025, compared to 100.0% at March 31, 2025 and 100.9% at June 30, 2024. 

    As of June 30, 2025, available for sale securities (“AFS”) totaled $413.1 million, an increase of $35.0 million from March 31, 2025, primarily related to purchases of $68.0 million, offset by maturities and amortization of $33.0 million during the second quarter of 2025. As of June 30, 2025, net unrealized losses totaled $23.1 million, a $1.9 million decrease, when compared to net unrealized losses of $25.0 million as of March 31, 2025.

    Deposits

    Total deposits were $3.2 billion as of June 30, 2025, an increase of $45.6 million, or 5.8% annualized, compared to March 31, 2025 and an increase of $164.6 million, or 5.4%, compared to June 30, 2024. The increase during the second quarter of 2025 was due to a $29.9 million increase in interest-bearing deposits coupled with a $15.7 million increase in noninterest-bearing deposits. The increase in interest-bearing deposits included increases in time deposits of $59.5 million, offset by decreases in interest-bearing non-maturity deposits of $29.5 million. Wholesale deposits totaled $183.8 million at June 30, 2025, an increase of $25.3 million compared to $158.5 million at March 31, 2025. Noninterest-bearing deposits totaled $543.9 million and represented 17.1% of total deposits at June 30, 2025 compared to $528.2 million and 16.8% at March 31, 2025.

    Credit Quality

    Nonperforming assets totaled $61.0 million, or 1.49% of total assets, at June 30, 2025, down from $64.6 million, or 1.61% of total assets, at March 31, 2025. The $3.6 million decrease in nonperforming assets was due to $3.3 million in net charge-offs and $1.7 million in payoffs and paydowns, partially offset by $1.4 million in additions from loans migrating to nonaccrual status in the second quarter of 2025. Nonperforming assets included one $4.2 million other real estate owned (included in “accrued interest and other assets”) at June 30, 2025 and March 31, 2025.

    Special mention loans totaled $91.3 million, or 2.82% of total loans, at June 30, 2025, up from $64.3 million, or 2.05% of total loans, at March 31, 2025. The $27.0 million increase was primarily due to the addition of loans totaling $30.1 million and $1.6 million in balance increases, partially offset by the downgrade of two CRE loans totaling $4.0 million to substandard-rated loans and payoffs and paydowns totaling $660,000. As of June 30, 2025, all special mention loans were paying current.

    Substandard loans totaled $91.0 million at June 30, 2025, up from $76.4 million at March 31, 2025. The $14.6 million increase was primarily due to the downgrades totaling $20.6 million, partially offset by net charge-offs totaling $3.3 million and payoffs and paydowns totaling $2.7 million. Of the total substandard loans at June 30, 2025, there were $34.2 million on accrual status.

    30-89 day delinquent loans, excluding nonperforming loans, totaled $18.0 million, or 0.56% of total loans, at June 30, 2025, up from $5.9 million, or 0.19% of total loans, at March 31, 2025. The $12.1 million increase was mostly due to $15.5 million in new delinquent loans, offset by $2.2 million in loans returning to current status, $798,000 in loans migrating to nonaccrual status, and $427,000 in paydowns and payoffs. The additions include an $8.5 million CRE loan that has since been brought current.

    As of June 30, 2025, the allowance for credit losses totaled $51.6 million and was comprised of an allowance for loan losses of $51.0 million and a reserve for unfunded commitments of $629,000 (included in “accrued interest and other liabilities”). This compares to the allowance for credit losses of $52.6 million, comprised of an allowance for loan losses of $51.9 million and a reserve for unfunded commitments of $629,000 at March 31, 2025. The $918,000 decrease in the allowance for credit losses for the second quarter of 2025 was due to net charge-offs of $3.3 million, offset by a $2.4 million provision for credit losses. The allowance for loan losses as a percentage of loans HFI decreased to 1.58% at June 30, 2025, compared to 1.65% at March 31, 2025, due mainly to net charge-offs of amounts included in specific reserves at March 31, 2025. The allowance for loan losses as a percentage of nonperforming loans HFI was 90% at June 30, 2025, an increase from 86% at March 31, 2025. 

      For the Three Months Ended June 30, 2025     For the Six Months Ended June 30, 2025  
    (dollars in thousands) Allowance
    for
    loan losses    		     Reserve for
    unfunded
    loan commitments    		     Allowance
    for
    credit losses    		     Allowance
    for loan
    losses    		     Reserve for
    unfunded
    loan
    commitments    		     Allowance
    for credit
    losses    		  
    Beginning balance $ 51,932     $ 629     $ 52,561     $ 47,729     $ 729     $ 48,458  
    Provision for (reversal of) credit losses   2,387       —       2,387       9,233       (100 )     9,133  
    Less loans charged-off   (3,339 )     —       (3,339 )     (6,065 )     —       (6,065 )
    Recoveries on loans charged-off   34       —       34       117       —       117  
    Ending balance $ 51,014     $ 629     $ 51,643     $ 51,014     $ 629     $ 51,643  
     

    Shareholders’ Equity

    At June 30, 2025, total shareholders’ equity was $517.7 million, a $7.3 million increase compared to March 31, 2025, and a $6.4 million increase compared to June 30, 2024. The increase in shareholders’ equity for the second quarter of 2025 was due to net income of $9.3 million, lower net unrealized losses on AFS securities of $1.3 million and equity compensation activity of $1.1 million, offset by common stock cash dividends paid totaling $2.9 million and common stock repurchases totaling $1.5 million. The increase in shareholders’ equity for the last twelve months was due to net income of $23.0 million, lower net unrealized losses on AFS securities of $4.9 million, and equity compensation activity of $2.5 million, offset by common stock repurchases totaling $12.5 million and common stock cash dividends paid totaling $11.5 million. Book value per share and tangible book value per share(1) increased to $29.25 and $25.11 at June 30, 2025, up from $28.77 and $24.63 at March 31, 2025 and up from $28.12 and $24.06 at June 30, 2024.

    Dividend Announcement

    The Board of Directors has declared a quarterly cash dividend of $0.16 per common share. The dividend is payable on August 12, 2025 to shareholders of record on July 31, 2025.

    (1 ) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.
         

    Corporate Overview

    RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of June 30, 2025, the Company had total assets of $4.1 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services predominately to the Asian-centric communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company’s administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company’s website address is www.royalbusinessbankusa.com.

    Conference Call

    Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, July 22, 2025, to discuss the Company’s second quarter 2025 financial results.

    To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, the Participant ID code is 710803, conference ID RBBQ225. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 52690, approximately one hour after the conclusion of the call and will remain available through August 05, 2025.

    The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at www.royalbusinessbankusa.com and click on the “Investors” tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.

    Disclosure

    This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

    Safe Harbor

    Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures; the potential for additional material weaknesses in the Company’s internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been detected; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the United States (“U.S.”) federal budget or debt or turbulence or uncertainly in domestic or foreign financial markets; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; 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; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; failure to comply with debt covenants; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; severe weather, natural disasters, earthquakes, fires, including direct and indirect costs and impacts on clients, the Company and its employees from the January 2025 Los Angeles County wildfires; or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia and Ukraine, in the Middle East, and increasing tensions between China and Taiwan, which could impact business and economic conditions in the U.S. and abroad; tariffs, trade policies, and related tensions, which could impact our clients, specific industry sectors, and/or broader economic conditions and financial market; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions; general economic or business conditions in Asia, and other regions where the Bank has operations; failures, interruptions, or security breaches of our information systems; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the cost of defending against them; our ability to adapt our systems to the expanding use of technology in banking; risk management processes and strategies; adverse results in legal proceedings; the impact of regulatory enforcement actions, if any; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in tax laws and regulations; the impact of governmental efforts to restructure the U.S. financial regulatory system and increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; the impact of changes in the Federal Deposit Insurance Corporation (“FDIC”) insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessments; 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 SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; fluctuations in the Company’s stock price; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California Department of Financial Protection and Innovation; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2024, and particularly the discussion of risk factors within that document. 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.

    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)
     
      June 30,     March 31,     December 31,     September 30,     June 30,  
      2025     2025     2024     2024     2024  
    Assets                                      
    Cash and due from banks $ 27,338     $ 25,315     $ 27,747     $ 26,388     $ 23,313  
    Interest-earning deposits with financial institutions   164,514       213,508       229,998       323,002       229,456  
    Cash and cash equivalents   191,852       238,823       257,745       349,390       252,769  
    Interest-earning time deposits with financial institutions   600       600       600       600       600  
    Investment securities available for sale   413,142       378,188       420,190       305,666       325,582  
    Investment securities held to maturity   4,186       5,188       5,191       5,195       5,200  
    Loans held for sale   –       655       11,250       812       3,146  
    Loans held for investment   3,234,695       3,143,063       3,053,230       3,091,896       3,047,712  
    Allowance for loan losses   (51,014 )     (51,932 )     (47,729 )     (43,685 )     (41,741 )
    Net loans held for investment   3,183,681       3,091,131       3,005,501       3,048,211       3,005,971  
    Premises and equipment, net   23,945       24,308       24,601       24,839       25,049  
    Federal Home Loan Bank (FHLB) stock   15,000       15,000       15,000       15,000       15,000  
    Cash surrender value of bank owned life insurance   61,111       60,699       60,296       59,889       59,486  
    Goodwill   71,498       71,498       71,498       71,498       71,498  
    Servicing assets   6,482       6,766       6,985       7,256       7,545  
    Core deposit intangibles   1,667       1,839       2,011       2,194       2,394  
    Right-of-use assets   25,554       26,779       28,048       29,283       30,530  
    Accrued interest and other assets   91,322       87,926       83,561       70,644       63,416  
    Total assets $ 4,090,040     $ 4,009,400     $ 3,992,477     $ 3,990,477     $ 3,868,186  
    Liabilities and shareholders’ equity                                      
    Deposits:                                      
    Noninterest-bearing demand $ 543,885     $ 528,205     $ 563,012     $ 543,623     $ 542,971  
    Savings, NOW and money market accounts   691,679       721,216       663,034       666,089       647,770  
    Time deposits, $250,000 and under   1,010,674       1,000,106       1,007,452       1,052,462       1,014,189  
    Time deposits, greater than $250,000   941,993       893,101       850,291       830,010       818,675  
    Total deposits   3,188,231       3,142,628       3,083,789       3,092,184       3,023,605  
    FHLB advances   180,000       160,000       200,000       200,000       150,000  
    Long-term debt, net of issuance costs   119,720       119,624       119,529       119,433       119,338  
    Subordinated debentures   15,265       15,211       15,156       15,102       15,047  
    Lease liabilities – operating leases   27,294       28,483       29,705       30,880       32,087  
    Accrued interest and other liabilities   41,877       33,148       36,421       23,150       16,818  
    Total liabilities   3,572,387       3,499,094       3,484,600       3,480,749       3,356,895  
    Shareholders’ equity:                                      
    Common stock   259,863       260,284       259,957       259,280       266,160  
    Additional paid-in capital   3,579       3,360       3,645       3,520       3,456  
    Retained earnings   270,152       263,885       264,460       262,946       262,518  
    Non-controlling interest   72       72       72       72       72  
    Accumulated other comprehensive loss, net   (16,013 )     (17,295 )     (20,257 )     (16,090 )     (20,915 )
    Total shareholders’ equity   517,653       510,306       507,877       509,728       511,291  
    Total liabilities and shareholders’ equity $ 4,090,040     $ 4,009,400     $ 3,992,477     $ 3,990,477     $ 3,868,186  
    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
    (In thousands, except share and per share data)
     
      For the Three Months Ended     For the Six Months Ended  
      June 30,
    2025    		     March 31,
    2025    		     June 30,
    2024    		     June 30,
    2025    		     June 30,
    2024    		  
    Interest and dividend income:                                      
    Interest and fees on loans $ 47,687     $ 45,621     $ 45,320     $ 93,308     $ 90,867  
    Interest on interest-earning deposits   1,750       2,014       3,353       3,764       8,393  
    Interest on investment securities   4,213       4,136       3,631       8,349       7,242  
    Dividend income on FHLB stock   324       330       327       654       658  
    Interest on federal funds sold and other   231       235       255       466       521  
    Total interest and dividend income   54,205       52,336       52,886       106,541       107,681  
    Interest expense:                                      
    Interest on savings deposits, NOW and money market accounts   4,567       4,468       4,953       9,035       9,431  
    Interest on time deposits   19,250       19,084       21,850       38,334       45,172  
    Interest on long-term debt and subordinated debentures   1,634       1,632       1,679       3,266       3,358  
    Interest on FHLB advances   1,420       989       439       2,409       878  
    Total interest expense   26,871       26,173       28,921       53,044       58,839  
    Net interest income before provision for credit losses   27,334       26,163       23,965       53,497       48,842  
    Provision for credit losses   2,387       6,746       557       9,133       557  
    Net interest income after provision for credit losses   24,947       19,417       23,408       44,364       48,285  
    Noninterest income:                                      
    Service charges and fees   1,060       1,017       1,064       2,077       2,056  
    Gain on sale of loans   358       81       451       439       763  
    Loan servicing fees, net of amortization   541       588       579       1,129       1,168  
    Increase in cash surrender value of life insurance   411       403       385       814       767  
    Gain on OREO   —       —       292       —       1,016  
    Other income   6,108       206       717       6,314       1,090  
    Total noninterest income   8,478       2,295       3,488       10,773       6,860  
    Noninterest expense:                                      
    Salaries and employee benefits   11,080       10,643       9,533       21,723       19,460  
    Occupancy and equipment expenses   2,377       2,407       2,439       4,784       4,882  
    Data processing   1,713       1,602       1,466       3,315       2,886  
    Legal and professional   2,904       1,515       1,260       4,419       2,140  
    Office expenses   405       408       352       813       708  
    Marketing and business promotion   212       197       189       409       361  
    Insurance and regulatory assessments   709       730       981       1,439       1,963  
    Core deposit premium   172       172       201       344       402  
    Other expenses   921       848       703       1,769       1,291  
    Total noninterest expense   20,493       18,522       17,124       39,015       34,093  
    Income before income taxes   12,932       3,190       9,772       16,122       21,052  
    Income tax expense   3,599       900       2,527       4,499       5,771  
    Net income $ 9,333     $ 2,290     $ 7,245     $ 11,623     $ 15,281  
                                           
    Net income per share                                      
    Basic $ 0.53     $ 0.13     $ 0.39     $ 0.66     $ 0.83  
    Diluted $ 0.52     $ 0.13     $ 0.39     $ 0.65     $ 0.82  
    Cash dividends declared per common share $ 0.16     $ 0.16     $ 0.16     $ 0.32     $ 0.32  
    Weighted-average common shares outstanding                                      
    Basic   17,746,607       17,727,712       18,375,970       17,737,212       18,488,623  
    Diluted   17,797,735       17,770,588       18,406,897       17,784,237       18,529,299  
    RBB BANCORP AND SUBSIDIARIES
    AVERAGE BALANCE SHEET AND NET INTEREST INCOME
    (Unaudited)
     
      For the Three Months Ended  
      June 30, 2025     March 31, 2025     June 30, 2024  
      Average     Interest     Yield /     Average     Interest     Yield /     Average     Interest     Yield /  
    (tax-equivalent basis, dollars in thousands) Balance     & Fees     Rate     Balance     & Fees     Rate     Balance     & Fees     Rate  
    Interest-earning assets                                                                      
    Cash and cash equivalents(1) $ 163,838     $ 1,980       4.85 %   $ 194,236     $ 2,249       4.70 %   $ 255,973     $ 3,608       5.67 %
    FHLB Stock   15,000       324       8.66 %     15,000       330       8.92 %     15,000       327       8.77 %
    Securities                                                                      
    Available for sale(2)   399,414       4,189       4.21 %     390,178       4,113       4.28 %     318,240       3,608       4.56 %
    Held to maturity(2)   5,028       48       3.83 %     5,189       49       3.83 %     5,203       46       3.56 %
    Total loans(3)   3,171,570       47,687       6.03 %     3,079,224       45,621       6.01 %     3,017,050       45,320       6.04 %
    Total interest-earning assets   3,754,850     $ 54,228       5.79 %     3,683,827     $ 52,362       5.76 %     3,611,466     $ 52,909       5.89 %
    Total noninterest-earning assets   254,029                       260,508                       240,016                  
    Total average assets $ 4,008,879                     $ 3,944,335                     $ 3,851,482                  
                                                                           
    Interest-bearing liabilities                                                                      
    NOW $ 66,755       368       2.21 %   $ 61,222     $ 321       2.13 %   $ 56,081     $ 276       1.98 %
    Money market   482,669       3,774       3.14 %     463,443       3,625       3.17 %     431,559       3,877       3.61 %
    Saving deposits   141,411       425       1.21 %     155,116       522       1.36 %     164,913       800       1.95 %
    Time deposits, $250,000 and under   996,249       9,768       3.93 %     989,622       10,046       4.12 %     1,049,666       12,360       4.74 %
    Time deposits, greater than $250,000   922,540       9,482       4.12 %     864,804       9,038       4.24 %     772,255       9,490       4.94 %
    Total interest-bearing deposits   2,609,624       23,817       3.66 %     2,534,207       23,552       3.77 %     2,474,474       26,803       4.36 %
    FHLB advances   159,286       1,420       3.58 %     176,833       989       2.27 %     150,000       439       1.18 %
    Long-term debt   119,657       1,296       4.34 %     119,562       1,295       4.39 %     119,275       1,296       4.37 %
    Subordinated debentures   15,230       338       8.90 %     15,175       337       9.01 %     15,011       383       10.26 %
    Total interest-bearing liabilities   2,903,797       26,871       3.71 %     2,845,777       26,173       3.73 %     2,758,760       28,921       4.22 %
    Noninterest-bearing liabilities                                                                      
    Noninterest-bearing deposits   526,113                       520,145                       529,450                  
    Other noninterest-bearing liabilities   65,278                       66,151                       51,087                  
    Total noninterest-bearing liabilities   591,391                       586,296                       580,537                  
    Shareholders’ equity   513,691                       512,262                       512,185                  
    Total liabilities and shareholders’ equity $ 4,008,879                     $ 3,944,335                     $ 3,851,482                  
    Net interest income / interest rate spreads         $ 27,357       2.08 %           $ 26,189       2.03 %           $ 23,988       1.67 %
    Net interest margin                   2.92 %                     2.88 %                     2.67 %
                                                                           
    Total cost of deposits $ 3,135,737     $ 23,817       3.05 %   $ 3,054,352     $ 23,552       3.13 %   $ 3,003,924     $ 26,803       3.59 %
    Total cost of funds $ 3,429,910     $ 26,871       3.14 %   $ 3,365,922     $ 26,173       3.15 %   $ 3,288,210     $ 28,921       3.54 %

    ___________

    (1 ) Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
    (2 ) Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
    (3 ) Average loan balances relate to loans held for investment and loans held for sale and include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.
    RBB BANCORP AND SUBSIDIARIES
    AVERAGE BALANCE SHEET AND NET INTEREST INCOME
    (Unaudited)
     
      Six Months Ended June 30,  
      2025     2024  
      Average     Interest     Yield /     Average     Interest     Yield /  
    (tax-equivalent basis, dollars in thousands) Balance     & Fees     Rate     Balance     & Fees     Rate  
    Interest-earning assets                                              
    Cash and cash equivalents(1) $ 178,953     $ 4,230       4.77 %   $ 310,476     $ 8,914       5.77 %
    FHLB Stock   15,000       654       8.79 %     15,000       658       8.82 %
    Securities                                              
    Available for sale(2)   394,822       8,302       4.24 %     319,127       7,197       4.54 %
    Held to maturity(2)   5,108       97       3.83 %     5,205       94       3.63 %
    Total loans(3)   3,125,652       93,308       6.02 %     3,017,737       90,867       6.06 %
    Total interest-earning assets   3,719,535     $ 106,591       5.78 %     3,667,545     $ 107,730       5.91 %
    Total noninterest-earning assets   257,250                       243,178                  
    Total average assets $ 3,976,785                     $ 3,910,723                  
                                                   
    Interest-bearing liabilities                                              
    NOW $ 64,004       689       2.17 %   $ 57,513     $ 574       2.01 %
    Money market   473,109       7,399       3.15 %     421,655       7,403       3.53 %
    Saving deposits   148,225       947       1.29 %     161,070       1,454       1.82 %
    Time deposits, $250,000 and under   992,954       19,815       4.02 %     1,112,735       26,165       4.73 %
    Time deposits, greater than $250,000   893,832       18,519       4.18 %     778,713       19,007       4.91 %
    Total interest-bearing deposits   2,572,124       47,369       3.71 %     2,531,686       54,603       4.34 %
    FHLB advances   168,011       2,409       2.89 %     150,000       878       1.18 %
    Long-term debt   119,610       2,591       4.37 %     119,228       2,591       4.37 %
    Subordinated debentures   15,203       675       8.95 %     14,984       767       10.29 %
    Total interest-bearing liabilities   2,874,948       53,044       3.72 %     2,815,898       58,839       4.20 %
    Noninterest-bearing liabilities                                              
    Noninterest-bearing deposits   523,145                       528,898                  
    Other noninterest-bearing liabilities   65,711                       53,441                  
    Total noninterest-bearing liabilities   588,856                       582,339                  
    Shareholders’ equity   512,981                       512,486                  
    Total liabilities and shareholders’ equity $ 3,976,785                     $ 3,910,723                  
    Net interest income / interest rate spreads         $ 53,547       2.06 %           $ 48,891       1.71 %
    Net interest margin                   2.90 %                     2.68 %
                                                   
    Total cost of deposits $ 3,095,269     $ 47,369       3.09 %   $ 3,060,584     $ 54,603       3.59 %
    Total cost of funds $ 3,398,093     $ 53,044       3.15 %   $ 3,344,796     $ 58,839       3.54 %

    ___________

    (1 ) Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
    (2 ) Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
    (3 ) Average loan balances relate to loans held for investment and loans held for sale and include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.
    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
     
      At or for the Three Months Ended     At or for the Six Months Ended June 30,  
      June 30,     March 31,     June 30,                  
      2025     2025     2024     2025     2024  
    Per share data (common stock)                                      
    Book value $ 29.25     $ 28.77     $ 28.12     $ 29.25     $ 28.12  
    Tangible book value(1) $ 25.11     $ 24.63     $ 24.06     $ 25.11     $ 24.06  
    Performance ratios                                      
    Return on average assets, annualized   0.93 %     0.24 %     0.76 %     0.59 %     0.79 %
    Return on average shareholders’ equity, annualized   7.29 %     1.81 %     5.69 %     4.57 %     6.00 %
    Return on average tangible common equity, annualized(1)   8.50 %     2.12 %     6.65 %     5.33 %     7.01 %
    Noninterest income to average assets, annualized   0.85 %     0.24 %     0.36 %     0.55 %     0.35 %
    Noninterest expense to average assets, annualized   2.05 %     1.90 %     1.79 %     1.98 %     1.75 %
    Yield on average earning assets   5.79 %     5.76 %     5.89 %     5.78 %     5.91 %
    Yield on average loans   6.03 %     6.01 %     6.04 %     6.02 %     6.06 %
    Cost of average total deposits(2)   3.05 %     3.13 %     3.59 %     3.09 %     3.59 %
    Cost of average interest-bearing deposits   3.66 %     3.77 %     4.36 %     3.71 %     4.34 %
    Cost of average interest-bearing liabilities   3.71 %     3.73 %     4.22 %     3.72 %     4.20 %
    Net interest spread   2.08 %     2.03 %     1.67 %     2.06 %     1.71 %
    Net interest margin   2.92 %     2.88 %     2.67 %     2.90 %     2.68 %
    Efficiency ratio(3)   57.22 %     65.09 %     62.38 %     60.70 %     61.21 %
    Common stock dividend payout ratio   30.19 %     123.08 %     41.03 %     48.48 %     38.55 %

    ___________

    (1 ) Non-GAAP measure. See Non–GAAP reconciliations set forth at the end of this press release.
    (2 ) Total deposits include non-interest bearing deposits and interest-bearing deposits.
    (3 ) Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income.
    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands)
     
      At or for the quarter ended  
      June 30,     March 31,     June 30,  
      2025     2025     2024  
    Credit Quality Data:                      
    Special mention loans $ 91,317     $ 64,279     $ 19,520  
    Special mention loans to total loans HFI   2.82 %     2.05 %     0.64 %
    Substandard loans $ 91,019     $ 76,372     $ 63,076  
    Substandard loans to total loans HFI   2.81 %     2.43 %     2.07 %
    Loans 30-89 days past due, excluding nonperforming loans $ 18,003     $ 5,927     $ 11,270  
    Loans 30-89 days past due, excluding nonperforming loans, to total loans   0.56 %     0.19 %     0.37 %
    Nonperforming loans $ 56,817     $ 60,380     $ 54,589  
    OREO $ 4,170     $ 4,170     $ —  
    Nonperforming assets $ 60,987     $ 64,550     $ 54,589  
    Nonperforming loans to total loans HFI   1.76 %     1.92 %     1.79 %
    Nonperforming assets to total assets   1.49 %     1.61 %     1.41 %
                           
    Allowance for loan losses $ 51,014     $ 51,932     $ 41,741  
    Allowance for loan losses to total loans HFI   1.58 %     1.65 %     1.37 %
    Allowance for loan losses to nonperforming loans HFI   89.79 %     86.01 %     76.46 %
    Net charge-offs $ 3,305     $ 2,643     $ 551  
    Net charge-offs to average loans   0.42 %     0.35 %     0.07 %
                           
    Capitalratios(1)                      
    Tangible common equity to tangible assets(2)   11.07 %     11.10 %     11.53 %
    Tier 1 leverage ratio   12.04 %     12.07 %     12.48 %
    Tier 1 common capital to risk-weighted assets   17.61 %     17.87 %     18.89 %
    Tier 1 capital to risk-weighted assets   18.17 %     18.45 %     19.50 %
    Total capital to risk-weighted assets   24.00 %     24.42 %     25.67 %

    ___________

    (1 ) June 30, 2025 capital ratios are preliminary.
    (2 ) Non-GAAP measure. See Non-GAAP reconciliations set forth at the end of this press release.
    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
     
    Loan Portfolio Detail As of June 30, 2025   As of March 31, 2025     As of June 30, 2024  
    (dollars in thousands) $   %   $     %     $     %  
    Loans:                                          
    Commercial and industrial $ 138,263       4.3 %   $ 135,538       4.3 %   $ 126,649       4.2 %
    SBA   55,984       1.7 %     50,651       1.6 %     50,323       1.7 %
    Construction and land development   157,970       4.9 %     158,883       5.1 %     202,459       6.6 %
    Commercial real estate(1)   1,273,442       39.4 %     1,245,402       39.6 %     1,190,207       39.1 %
    Single-family residential mortgages   1,603,114       49.6 %     1,545,822       49.2 %     1,467,802       48.2 %
    Other loans   5,922       0.1 %     6,767       0.2 %     10,272       0.2 %
    Total loans $ 3,234,695       100.0 %   $ 3,143,063       100.0 %   $ 3,047,712       100.0 %
    Allowance for loan losses   (51,014 )         (51,932 )             (41,741 )        
    Total loans, net $ 3,183,681         $ 3,091,131             $ 3,005,971          

    ___________

    (1 ) Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans.
    Deposits As of June 30, 2025   As of March 31, 2025     As of June 30, 2024  
    (dollars in thousands) $   %   $   %     $   %  
    Deposits:                                          
    Noninterest-bearing demand $ 543,885       17.1 %   $ 528,205       16.8 %   $ 542,971       18.0 %
    Savings, NOW and money market accounts   691,679       21.7 %     721,216       22.9 %     647,770       21.4 %
    Time deposits, $250,000 and under   848,379       26.6 %     863,962       27.5 %     921,712       30.5 %
    Time deposits, greater than $250,000   920,481       28.8 %     870,708       27.8 %     790,478       26.1 %
    Wholesale deposits(1)   183,807       5.8 %     158,537       5.0 %     120,674       4.0 %
    Total deposits $ 3,188,231       100.0 %   $ 3,142,628       100.0 %   $ 3,023,605       100.0 %

    ___________

    (1 ) Includes brokered deposits, collateralized deposits from the State of California, and deposits acquired through internet listing services.

    Non-GAAP Reconciliations

    Tangible Book Value Reconciliations

    Tangible book value per share is a non-GAAP disclosure. Management measures tangible book value per share to assess the Company’s capital strength and business performance and believes this is helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of as of the dates indicated.

                         
    (dollars in thousands, except share and per share data) June 30, 2025     March 31, 2025     June 30, 2024  
    Tangible common equity:                      
    Total shareholders’ equity $ 517,653     $ 510,306     $ 511,291  
    Adjustments                      
    Goodwill   (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible   (1,667 )     (1,839 )     (2,394 )
    Tangible common equity $ 444,488     $ 436,969     $ 437,399  
    Tangible assets:                      
    Total assets-GAAP $ 4,090,040     $ 4,009,400     $ 3,868,186  
    Adjustments                      
    Goodwill   (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible   (1,667 )     (1,839 )     (2,394 )
    Tangible assets $ 4,016,875     $ 3,936,063     $ 3,794,294  
    Common shares outstanding   17,699,091       17,738,628       18,182,154  
    Common equity to assets ratio   12.66 %     12.73 %     13.22 %
    Tangible common equity to tangible assets ratio   11.07 %     11.10 %     11.53 %
    Book value per share $ 29.25     $ 28.77     $ 28.12  
    Tangible book value per share $ 25.11     $ 24.63     $ 24.06  

    Return on Average Tangible Common Equity

    Management measures return on average tangible common equity (“ROATCE”) to assess the Company’s capital strength and business performance and believes this is helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights) and is reviewed by banking and financial institution regulators when assessing a financial institution’s capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure:

      Three Months Ended     Six Months Ended June 30,  
    (dollars in thousands) June 30, 2025     March 31, 2025     June 30, 2024     2025     2024  
    Net income available to common shareholders $ 9,333     $ 2,290     $ 7,245     $ 11,623     $ 15,281  
    Average shareholders’ equity   513,691       512,262       512,185       512,981       512,486  
    Adjustments:                                      
    Average goodwill   (71,498 )     (71,498 )     (71,498 )     (71,498 )     (71,498 )
    Average core deposit intangible   (1,780 )     (1,951 )     (2,525 )     (1,865 )     (2,625 )
    Adjusted average tangible common equity $ 440,413     $ 438,813     $ 438,162     $ 439,618     $ 438,363  
    Return on average common equity, annualized   7.29 %     1.81 %     5.69 %     4.57 %     6.00 %
    Return on average tangible common equity, annualized   8.50 %     2.12 %     6.65 %     5.33 %     7.01 %

    The MIL Network –

  • MIL-Evening Report: How EVs and electric water heaters are turning cities into giant batteries

    Source: The Conversation (Au and NZ) – By Bin Lu, Senior Research Fellow in Renewable Energy, Australian National University

    Leonid Andronov/Shutterstock

    As the electrification of transport and heating accelerates, many worry the increased demand could overload national power grids. In Australia, electricity consumption is expected to double by 2050.

    If everyone charges their car and heats water using electric systems at the same time, peak demand could rise sharply, forcing costly grid upgrades. But this would only happen if there’s no planning done.

    The shift to electric vehicles (EVs) and electric water heating has a huge silver lining. As more Australians make the switch, they’re quietly expanding a vast network of distributed energy storage. In a fully electrified future, each person could have on average about 46 kilowatt hours worth of energy storage – both in EV batteries and hot water systems.

    Scaled up, that’s a huge resource. If all cars and water heaters run on electricity, their combined flexible energy storage could reach over 1,000 gigawatt-hours (GWh) across Australia. That’s far beyond the 350 GWh capacity of the Snowy 2.0 hydroelectric project and all existing grid-scale batteries put together.

    Authorities can use these devices to help operate the grid more efficiently and slash infrastructure costs. In fact, our new research shows that with the right coordination, cities can transform from energy consumers into flexible energy hubs able to store energy and release it as necessary. This would make it possible to avoid billions of dollars worth of grid upgrades.

    Storage built in

    Electrification replaces fossil fuel-burning technology with electric-only systems, powered by a grid getting steadily cleaner.

    For households, electrification means switching a combustion engine car for an EV and replacing gas hot water with electric systems such as heat pumps. Both slash carbon emissions when run on grids with high levels of renewables.

    EVs and electric hot water systems offer more than just mobility or heating. They also have built-in energy storage. EV batteries store huge amounts of electricity – usually several times the size of a house battery. Hot water systems store energy too, in the form of heat.

    Both of these resources are very useful to power grid authorities, because they can help optimise how the grid operates.

    Power grids are a constant balancing act, where supply and demand have to be carefully matched up. At times of intense demand, such as during a heatwave, demand can outstrip normal supply and send prices skyrocketing.

    When EVs are charged and water heated during off-peak periods, the strain on the grid can be significantly lessened.

    Workplace EV chargers are convenient for drivers – and very useful for the grid.
    jixiang liu/Shutterstock

    Canberra is pointing the way

    Since 2020, Canberra has been 100% powered by renewable electricity. The ACT Government is aiming for net zero by 2045.

    In our modelling, we found this goal could get a lot closer if EVs and hot water systems are used cleverly. We found changing the time cars are charged and water heated would shift around 5 kWh of electricity per person per day. That’s about a third of each Canberra resident’s average daily electricity use.

    Unmanaged charging and water heating would cause peak load to jump 34%. But if charging and heating was shifted to off-peak hours overnight, it could restrict the rise in peak load to just 16%.

    Reducing the rise in peak load would make it possible to avoid billions of dollars in grid upgrades such as expanding substations and building more transmission lines.

    Where flexibility matters most

    We found Canberra’s new energy storage resources are concentrated in storage hotspots – densely populated areas with many electric hot water systems and where many EVs are parked during the day.

    Importantly, these hotspots don’t stay put. During working hours, vehicle batteries tend to concentrate in high-density office areas where EVs are parked. Storage capacity rose up to 31% in some Canberra working districts during the working week.

    It would make sense to make the most of these hotspots by installing smart chargers, which optimise the timing of EV charging and creating virtual power plants, which can coordinate the time when household devices and EVs draw power.

    Both of these approaches offer a cost-effective way to aggregate small scale household devices into a large coordinated storage resource.

    Aligning demand with solar peaks means using renewable energy which might otherwise go to waste during peak times.

    This map shows Canberra’s storage hotspots averaged out. EV batteries are in blue and electric hot water storage in orange.
    Bin Lu, CC BY-NC-ND

    Policy needs to catch up

    Capturing the huge benefits from these new storage resources won’t happen automatically. It requires smart systems and supportive policies.

    Technologies such as smart chargers and virtual power plants already exist. South Australia’s Virtual Power Plant shows what’s possible in practice.

    But to date, most Australian households don’t have these kinds of smart systems. In many areas, electricity pricing is relatively inflexible and there’s limited coordination between flexible energy use and the needs of the grid.

    To unlock the full potential of this huge new energy storage resource, governments and energy companies should:

    • encourage uptake of smart chargers and smart water heaters in buildings

    • expand dynamic pricing schemes which better reflect real-time supply and demand to help shift electricity use to off-peak periods

    • focus on rolling out workplace EV chargers in high-density areas to boost charging during solar peak periods

    • develop smart energy systems able to aggregate devices in individual households into a large grid-supporting fleet.

    More demand – but more storage

    As Australia increasingly goes electric, cities are becoming more than just energy consumers.

    Rather, they’re becoming flexible energy hubs able to help balance supply and demand.

    Used wisely, humble electric water heaters and EVs can do more than meet household needs — they can help power Australia’s clean energy future.

    Bin Lu received research funding from the Icon Water & ActewAGL Endowment Fund.

    Marnie Shaw has received funding from federal and state governments.

    – ref. How EVs and electric water heaters are turning cities into giant batteries – https://theconversation.com/how-evs-and-electric-water-heaters-are-turning-cities-into-giant-batteries-261369

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Welch Visits Hardwick, Burke to Discuss Flood Recovery and FEMA Reform 

    US Senate News:

    Source: United States Senator Peter Welch (D-Vermont)

    BURKE, VT—U.S. Senator Peter Welch (D-Vt.) today met with flood-impacted Vermonters and community leaders in northern Vermont. Senator Welch also held a Listening Session in Hardwick last week.  
    “Hardwick and Burke know all too well—climate change is here, and we need to empower small towns with the tools and resources they need to recover. My new bill, the Disaster AID Act, will help cut through red tape and improve the disaster recovery process,” said Senator Welch. “The input I received from Vermont communities about their experience with FEMA shaped this bill, and am committed to making Washington work better for Vermont.”  
    View photos here and on Senator Welch’s website:  

    Senator Welch hosts a Listening Session in Hardwick on Monday, July 14 

     Senator Welch hosts a Listening Session in Burke on Monday, July 21 
    West Burke, as well as Sutton and Lyndon, were hit by more flash flooding in 2025 on the anniversary of the 2023 and 2024 floods. Senator Welch’s visits to Hardwick and Burke follow visits to flood-impacted communities across Vermont, including Killington, Ludlow, Weston, Barre, and Montpelier.  
    This month, Senator Welch introduced the Disaster Assistance Improvement and Decentralization (AID) Act. Senator Welch’s bill will cut red tape and empower state and local governments to access recovery assistance when it is needed. The bill will support hazard mitigation efforts, make the delivery of disaster aid more efficient and effective, provide technical assistance to small towns and communities impacted by natural disasters, and block the White House from withholding funding for disaster response. 
    Last week, Senator Welch called for the resignation of U.S. Department of Homeland Security Secretary Kristi Noem, citing Secretary Noem’s mishandling of FEMA and record of undermining FEMA’s work, as well as her handling of President Trump’s cruel and illegal mass deportation campaign. 

    MIL OSI USA News –

  • MIL-OSI Canada: Minister LeBlanc meets with U.S. Senate Congressional Delegation

    Source: Government of Canada News

    July 21, 2025 – Ottawa, Ontario – Global Affairs Canada

    Today, the Honourable Dominic LeBlanc, President of the King’s Privy Council for Canada and Minister responsible for Canada-U.S. Trade, Intergovernmental Affairs and One Canadian Economy, met with a U.S. Senate Congressional Delegation to discuss opportunities to strengthen the longstanding and unique trade and investment relationship between Canada and the United States.

    During his discussion with Senators Ron Wyden (Oregon), Lisa Murkowski (Alaska), Maggie Hassan (New Hampshire), and Catherine Cortez Masto (Nevada), Minister LeBlanc underscored the importance of maintaining an open and stable trade environment between our deeply integrated economies to support mutual growth, prosperity and security. The minister conveyed his commitment to work with U.S. Congressional leaders to advance shared trade and investment goals.

    Associated links

    MIL OSI Canada News –

  • MIL-OSI: NXP Semiconductors Reports Second Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    EINDHOVEN, The Netherlands, July 21, 2025 (GLOBE NEWSWIRE) — NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the second quarter, which ended June 29, 2025. “NXP delivered quarterly revenue of $2.93 billion, above the midpoint of our guidance, with all our focus end-markets performing above expectations. Our guidance for the third quarter reflects the combination of an emerging cyclical improvement in NXP’s core end markets as well as the performance of our company specific growth drivers. We continue to drive solid profitability and earnings, by strengthening our competitive portfolio and by aligning our wafer fabrication footprint consistent with our hybrid manufacturing strategy,” said Kurt Sievers, NXP Chief Executive Officer.

    Key Highlights for the Second Quarter 2025:

    • Revenue was $2.93 billion, down 6 percent year-on-year;
    • GAAP gross margin was 53.4 percent, GAAP operating margin was 23.5 percent and GAAP diluted Net Income per Share was $1.75;
    • Non-GAAP gross margin was 56.5 percent, non-GAAP operating margin was 32.0 percent, and non-GAAP diluted Net Income per Share was $2.72;
    • Cash flow from operations was $779 million, with net capex investments of $83 million, resulting in non-GAAP free cash flow of $696 million;
    • Capital return during the quarter was $461 million, representing 66 percent of second quarter non-GAAP free cash flow. Share buybacks were $204 million and dividends paid during the quarter were $257 million;
    • On May 8, 2025, NXP announced its third generation imaging processors for Level 2+ to Level 4 Autonomous Driving. The new S32R47 imaging radar processors in 16 nm FinFET technology, delivers up to twice the processing power versus the previous generation, building upon NXP’s proven expertise and global market leadership in the automotive radar market;
    • On June 12, 2025, NXP and Rimac Technology announced the co-development of a software defined vehicle (SDV) architecture for advanced automotive domain and zonal control. The jointly developed solution features NXP’s S32E2 processors, which are part of NXP’s comprehensive S32 Automotive Processing Platform. The S32E addresses the vehicle’s need for high-performance deterministic real-time domain and zonal control in a multi-applications environment; and
    • On June 17, 2025, NXP announced the completion of the acquisition of TTTech Auto, a leader in innovating unique safety-critical systems and middleware for software-defined vehicles (SDVs), pursuant to the terms of the previously announced agreement from January 2025.

    Summary of Reported Second Quarter 2025 ($ millions, unaudited) (1)

      Q2 2025 Q1 2025 Q2 2024 Q – Q Y – Y
    Total Revenue $ 2,926   $ 2,835   $ 3,127     3%     -6%  
    GAAP Gross Profit $ 1,562   $ 1,560   $ 1,792     —%     -13%  
    Gross Profit Adjustments(i) $ (90 ) $ (31 ) $ (41 )    
    Non-GAAP Gross Profit $ 1,652   $ 1,591   $ 1,833     4%     -10%  
    GAAP Gross Margin   53.4 %   55.0 %   57.3 %    
    Non-GAAP Gross Margin   56.5 %   56.1 %   58.6 %    
    GAAP Operating Income (Loss) $ 687   $ 723   $ 896     -5%     -23%  
    Operating Income Adjustments(i) $ (248 ) $ (181 ) $ (175 )    
    Non-GAAP Operating Income $ 935   $ 904   $ 1,071     3%     -13%  
    GAAP Operating Margin   23.5 %   25.5 %   28.7 %    
    Non-GAAP Operating Margin   32.0 %   31.9 %   34.3 %    
    GAAP Net Income (Loss) attributable to Stockholders $ 445   $ 490   $ 658     -9%     -32%  
    Net Income Adjustments(i) $ (245 ) $ (183 ) $ (171 )    
    Non-GAAP Net Income (Loss) Attributable to Stockholders $ 690   $ 673   $ 829     3%     -17%  
    GAAP diluted Net Income (Loss) per Share(ii) $ 1.75   $ 1.92   $ 2.54     -9%     -31%  
    Non-GAAP diluted Net Income (Loss) per Share(ii) $ 2.72   $ 2.64   $ 3.20     3%     -15%  
    Additional information          
      Q2 2025 Q1 2025 Q2 2024 Q – Q Y – Y
    Automotive $ 1,729   $ 1,674   $ 1,728     3%     —%  
    Industrial & IoT $ 546   $ 508   $ 616     7%     -11%  
    Mobile $ 331   $ 338   $ 345     -2%     -4%  
    Comm. Infra. & Other $ 320   $ 315   $ 438     2%     -27%  
    DIO   158     169     148      
    DPO   60     62     64      
    DSO   33     34     27      
    Cash Conversion Cycle   131     141     111      
    Channel Inventory (weeks)   9     9     7      
    Gross Financial Leverage(iii)   2.4x     2.4x     1.9x      
    Net Financial Leverage(iv)   1.8x     1.6x     1.3x      
                           
    1. Additional Information for the Second Quarter 2025:
      1. For an explanation of GAAP to non-GAAP adjustments, please see “Non-GAAP Financial Measures”.
      2. Refer to Table 1 below for the weighted average number of diluted shares for the presented periods.
      3. Gross financial leverage is defined as gross debt divided by trailing twelve months adjusted EBITDA.
      4. Net financial leverage is defined as net debt divided by trailing twelve months adjusted EBITDA.

        5. Guidance for the Third Quarter 2025: ($ millions, except Per Share data) (1)

           
          GAAP   Reconciliation   non-GAAP
          Low   Mid   High       Low   Mid   High
        Total Revenue   $3,050       $3,150       $3,250           $3,050       $3,150       $3,250  
        Q-Q   4%       8%       11%           4%       8%       11%  
        Y-Y   -6%       -3%       —%           -6%       -3%       —%  
        Gross Profit   $1,691       $1,764       $1,837       $(32)       $1,723       $1,796       $1,869  
        Gross Margin   55.4%       56.0%       56.5%           56.5%       57.0%       57.5%  
        Operating Income (loss)   $818       $881       $944       $(180)       $998       $1,061       $1,124  
        Operating Margin   26.8%       28.0%       29.0%           32.7%       33.7%       34.6%  
        Financial Income (expense)   $(101)       $(101)       $(101)       $(10)       $(91)       $(91)       $(91)  
        Tax rate 18.3%-19.3%       17.0%-18.0%
        Equity-accounted investees   $(5)       $(5)       $(5)       $(4)       $(1)       $(1)       $(1)  
        Non-controlling interests   $(14)       $(14)       $(14)           $(14)       $(14)       $(14)  
        Shares – diluted   253.8       253.8       253.8               253.8       253.8       253.8  
        Earnings Per Share – diluted   $2.22       $2.42       $2.62               $2.89       $3.10       $3.30  
                                                               

        Note (1) Additional Information:

        1. GAAP Gross Profit is expected to include Purchase Price Accounting (“PPA”) effects, $(7) million; Share-based Compensation, $(15) million; Other Incidentals, $(10) million;
        2. GAAP Operating Income (loss) is expected to include PPA effects, $(40) million; Share-based Compensation, $(116) million; Restructuring and Other Incidentals, $(24) million;
        3. GAAP Financial Income (expense) is expected to include Other financial expense $(10) million;
        4. GAAP Results relating to equity-accounted investees is expected to include results relating to non-foundry equity-accounted investees $(4) million;
        5. GAAP diluted EPS is expected to include the adjustments noted above for PPA effects, Share-based Compensation, Restructuring and Other Incidentals in GAAP Operating Income (loss), the adjustment for Other financial expense, the adjustment for results relating to non-foundry equity-accounted investees and the adjustment on Tax due to the earlier mentioned adjustments.

        NXP has based the guidance included in this release on judgments and estimates that management believes are reasonable given its assessment of historical trends and other information reasonably available as of the date of this release. Please note, the guidance included in this release consists of predictions only, and is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP’s control. The guidance included in this release should not be regarded as representations by NXP that the estimated results will be achieved. Actual results may vary materially from the guidance we provide today. In relation to the use of non-GAAP financial information see the note regarding “Non-GAAP Financial Measures” below. For the factors, risks, and uncertainties to which judgments, estimates and forward-looking statements generally are subject see the note regarding “Forward-looking Statements.” We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances.

        Non-GAAP Financial Measures

        In managing NXP’s business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures, that are not in accordance with, nor an alternative to, U.S. generally accepted accounting principles (“GAAP”). In measuring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing our gross margin and operating margin and when assessing appropriate levels of research and development efforts. In addition, management relies upon these non-GAAP financial measures when making decisions about product spending, administrative budgets, and other operating expenses. We believe that these non-GAAP financial measures, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company’s results of operations and the factors and trends affecting NXP’s business. We believe that they enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to core operating performance, certain non-cash expenses and share-based compensation expense, which may obscure trends in NXP’s underlying performance. This information also enables investors to compare financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management.

        These non-GAAP financial measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The presentation of these and other similar items in NXP’s non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual. Reconciliations of these non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the financial statements portion of this release in a schedule entitled “Financial Reconciliation of GAAP to non-GAAP Results (unaudited).” Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at https://investors.nxp.com for additional information related to our rationale for using these non-GAAP financial measures, as well as the impact of these measures on the presentation of NXP’s operations.

        In addition to providing financial information on a basis consistent with GAAP, NXP also provides the following selected financial measures on a non-GAAP basis: (i) Gross profit, (ii) Gross margin, (iii) Research and development, (iv) Selling, general and administrative, (v) Amortization of acquisition-related intangible assets, (vi) Other income, (vii) Operating income (loss), (viii) Operating margin, (ix) Financial Income (expense), (x) Income tax benefit (provision), (xi) Results relating to non-foundry equity-accounted investees, (xii) Net income (loss) attributable to stockholders, (xiii) Earnings per Share – Diluted, (xiv) EBITDA, adjusted EBITDA and trailing 12 month adjusted EBITDA, and (xv) free cash flow, trailing 12 month free cash flow and trailing 12 month free cash flow as a percent of Revenue. The non-GAAP information excludes, where applicable, the amortization of acquisition related intangible assets, the purchase accounting effect on inventory and property, plant and equipment, merger related costs (including integration costs), certain items related to divestitures, share-based compensation expense, restructuring and asset impairment charges, extinguishment of debt, foreign exchange gains and losses, income tax effect on adjustments described above and results from non-foundry equity-accounted investments.

        The difference in the benefit (provision) for income taxes between our GAAP and non-GAAP results relates to the income tax effects of the GAAP to non-GAAP adjustments that we make and the income tax effect of any discrete items that occur in the interim period. Discrete items primarily relate to unexpected tax events that may occur as these amounts cannot be forecasted (e.g., the impact of changes in tax law and/or rates, changes in estimates or resolved tax audits relating to prior year tax provisions, the excess or deficit tax effects on share-based compensation, etc.).

        Conference Call and Webcast Information

        The company will host a conference call with the financial community on Tuesday, July 22, 2025 at 8:00 a.m. U.S. Eastern Daylight Time (EDT) to review the second quarter 2025 results in detail.

        Interested parties may preregister to obtain a user-specific access code for the call here.

        The call will be webcast and can be accessed from the NXP Investor Relations website at www.nxp.com. A replay of the call will be available on the NXP Investor Relations website within 24 hours of the actual call.

        About NXP Semiconductors

        NXP Semiconductors N.V. (NASDAQ: NXPI) is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP’s “Brighter Together” approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $12.61 billion in 2024. Find out more at www.nxp.com.

        Forward-looking Statements

        This document includes forward-looking statements which include statements regarding NXP’s business strategy, financial condition, results of operations, market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; our ability to successfully introduce new technologies and products; the demand for the goods into which NXP’s products are incorporated; global trade disputes, potential increase of barriers to international trade, including the imposition of new or increased tariffs, and resulting disruptions to our established supply chains; the impact of government actions and regulations, including as a result of executive orders, including restrictions on the export of products and technology; increasing and evolving cybersecurity threats and privacy risks; our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers; our access to production capacity from third-party outsourcing partners, and any events that might affect their business or our relationship with them; our ability to secure adequate and timely supply of equipment and materials from suppliers; our ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; our ability to form strategic partnerships and joint ventures and to successfully cooperate with our strategic alliance partners; our ability to win competitive bid selection processes; our ability to develop products for use in customers’ equipment and products; our ability to successfully hire and retain key management and senior product engineers; global hostilities, including the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia and the continued hostilities and the armed conflict in the Middle East, which could adversely impact the global supply chain, disrupt our operations or negatively impact the demand for our products in our primary end markets; our ability to maintain good relationships with our suppliers; our ability to integrate acquired businesses in an efficient and effective manner; our ability to generate sufficient cash, raise sufficient capital or refinance corporate debt at or before maturity to meet both NXP’s debt service and research and development and capital investment requirements; and a change in tax laws could have an effect on our estimated effective tax rates. In addition, this document contains information concerning the semiconductor industry, our end markets and business generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, our end markets and business will develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov.

        For further information, please contact:

        Investors: Media:
        Jeff Palmer Paige Iven
        jeff.palmer@nxp.com  paige.iven@nxp.com
        +1 408 205 0687  +1 817 975 0602
           

        NXP-CORP

        NXP Semiconductors
        Table 1: Condensed consolidated statement of operations (unaudited)

        ($ in millions except share data) Three months ended
          June 29, 2025   March 30, 2025   June 30, 2024
                   
        Revenue $ 2,926     $ 2,835     $ 3,127  
        Cost of revenue   (1,364 )     (1,275 )     (1,335 )
        Gross profit   1,562       1,560       1,792  
        Research and development   (573 )     (547 )     (594 )
        Selling, general and administrative   (278 )     (281 )     (270 )
        Amortization of acquisition-related intangible assets   (25 )     (27 )     (28 )
        Total operating expenses   (876 )     (855 )     (892 )
        Other income (expense)   1       18       (4 )
        Operating income (loss)   687       723       896  
        Financial income (expense):          
        Other financial income (expense)   (86 )     (92 )     (75 )
        Income (loss) before income taxes   601       631       821  
        Benefit (provision) for income taxes   (116 )     (130 )     (154 )
        Results relating to equity-accounted investees   (28 )     (4 )     (3 )
        Net income (loss)   457       497       664  
        Less: Net income (loss) attributable to non-controlling interests   12       7       6  
        Net income (loss) attributable to stockholders   445       490       658  
                   
        Earnings per share data:          
        Net income (loss) per common share attributable to stockholders in $
        Basic $ 1.76     $ 1.93     $ 2.58  
        Diluted $ 1.75     $ 1.92     $ 2.54  
                   
        Weighted average number of shares of common stock outstanding during the period (in thousands):
        Basic   252,418       253,709       255,478  
        Diluted   253,844       255,018       258,732  
                   

        NXP Semiconductors
        Table 2: Condensed consolidated balance sheet (unaudited)

        ($ in millions) As of
          June 29, 2025   March 30, 2025   June 30, 2024
        ASSETS          
        Current assets:          
        Cash and cash equivalents $ 3,170     $ 3,988     $ 2,859  
        Short-term deposits   —       —       400  
        Accounts receivable, net   1,071       1,060       927  
        Assets held for sale   294       —       —  
        Inventories, net   2,361       2,350       2,148  
        Other current assets   790       627       546  
        Total current assets   7,686       8,025       6,880  
                   
        Non-current assets:          
        Deferred tax assets   1,306       1,284       1,067  
        Other non-current assets   1,909       1,942       1,223  
        Property, plant and equipment, net   3,130       3,210       3,289  
        Identified intangible assets, net   1,121       777       796  
        Goodwill   10,098       9,942       9,941  
        Total non-current assets   17,564       17,155       16,316  
                   
        Total assets   25,250       25,180       23,196  
                   
        LIABILITIES AND EQUITY          
        Current liabilities:          
        Accounts payable   892       863       929  
        Restructuring liabilities-current   65       75       62  
        Other current liabilities   1,471       1,412       1,622  
        Short-term debt   1,999       1,499       499  
        Total current liabilities   4,427       3,849       3,112  
                   
        Non-current liabilities:          
        Long-term debt   9,479       10,226       9,681  
        Restructuring liabilities   60       4       7  
        Other non-current liabilities   1,348       1,424       1,051  
        Total non-current liabilities   10,887       11,654       10,739  
                   
        Non-controlling interests   367       355       327  
        Stockholders’ equity   9,569       9,322       9,018  
        Total equity   9,936       9,677       9,345  
                   
        Total liabilities and equity   25,250       25,180       23,196  
                   

        NXP Semiconductors
        Table 3: Condensed consolidated statement of cash flows (unaudited)

        ($ in millions) Three months ended
          June 29, 2025   March 30, 2025   June 30, 2024
        Cash flows from operating activities:          
        Net income (loss) $ 457     $ 497     $ 664  
        Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:          
        Depreciation and amortization   207       209       213  
        Share-based compensation   117       127       114  
        Amortization of discount (premium) on debt, net   —       1       1  
        Amortization of debt issuance costs   2       1       1  
        Net (gain) loss on sale of assets   (6 )     (22 )     —  
        Results relating to equity-accounted investees   28       4       3  
        (Gain) loss on equity securities, net   (3 )     6       3  
        Deferred tax expense (benefit)   3       (27 )     (23 )
        Changes in operating assets and liabilities:          
        (Increase) decrease in receivables and other current assets   (106 )     (29 )     10  
        (Increase) decrease in inventories   (90 )     6       (46 )
        Increase (decrease) in accounts payable and other liabilities   33       (110 )     (220 )
        (Increase) decrease in other non-current assets   131       (106 )     40  
        Exchange differences   9       4       5  
        Other items   (3 )     4       (4 )
        Net cash provided by (used for) operating activities   779       565       761  
                   
        Cash flows from investing activities:          
        Purchase of identified intangible assets   (37 )     (25 )     (55 )
        Capital expenditures on property, plant and equipment   (83 )     (139 )     (185 )
        Proceeds from the disposals of property, plant and equipment   —       1       1  
        Purchase of interests in businesses, net of cash acquired   (679 )     —       —  
        Purchase of investments   (93 )     (53 )     —  
        Net cash provided by (used for) investing activities   (892 )     (216 )     (239 )
                   
        Cash flows from financing activities:          
        Repurchase of long-term debt   (500 )     —       —  
        Proceeds from the issuance of long-term debt   —       370       —  
        Proceeds from the issuance of commercial paper notes   1,565       646       —  
        Repayment of commercial paper notes   (1,315 )     (146 )     —  
        Dividends paid to common stockholders   (257 )     (258 )     (260 )
        Proceeds from issuance of common stock through stock plans   2       37       3  
        Purchase of treasury shares and restricted stock unit withholdings   (204 )     (303 )     (310 )
        Other, net   —       (1 )     —  
        Net cash provided by (used for) financing activities   (709 )     345       (567 )
                   
        Effect of changes in exchange rates on cash positions   4       2       (4 )
        Increase (decrease) in cash and cash equivalents   (818 )     696       (49 )
        Cash and cash equivalents at beginning of period   3,988       3,292       2,908  
        Cash and cash equivalents at end of period   3,170       3,988       2,859  
                   
        Net cash paid during the period for:          
        Interest   109       41       86  
        Income taxes, net of refunds   167       96       193  
        Net gain (loss) on sale of assets:          
        Cash proceeds from the sale of assets   6       31       1  
        Book value of these assets   —       (9 )     (1 )
        Non-cash investing activities:          
        Non-cash capital expenditures   103       108       166  
                   

        NXP Semiconductors
        Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)

        ($ in millions except share data) Three months ended
          June 29, 2025   March 30, 2025   June 30, 2024
        GAAP Gross Profit $ 1,562     $ 1,560     $ 1,792  
        PPA Effects   (7 )     (8 )     (12 )
        Restructuring   (61 )     (4 )     (4 )
        Share-based compensation   (14 )     (16 )     (15 )
        Other incidentals   (8 )     (3 )     (10 )
        Non-GAAP Gross Profit $ 1,652     $ 1,591     $ 1,833  
        GAAP Gross margin   53.4 %     55.0 %     57.3 %
        Non-GAAP Gross margin   56.5 %     56.1 %     58.6 %
        GAAP Research and development $ (573 )   $ (547 )   $ (594 )
        Restructuring   (3 )     (7 )     (4 )
        Share-based compensation   (58 )     (64 )     (58 )
        Other incidentals   (7 )     (1 )     —  
        Non-GAAP Research and development $ (505 )   $ (475 )   $ (532 )
        GAAP Selling, general and administrative $ (278 )   $ (281 )   $ (270 )
        PPA effects   —       —       (1 )
        Restructuring   (3 )     (3 )     2  
        Share-based compensation   (45 )     (47 )     (41 )
        Other incidentals   (15 )     (20 )     (2 )
        Non-GAAP Selling, general and administrative $ (215 )   $ (211 )   $ (228 )
        GAAP Operating income (loss) $ 687     $ 723     $ 896  
        PPA effects   (32 )     (40 )     (41 )
        Restructuring   (67 )     (14 )     (6 )
        Share-based compensation   (117 )     (127 )     (114 )
        Other incidentals   (32 )     —       (14 )
        Non-GAAP Operating income (loss) $ 935     $ 904     $ 1,071  
        GAAP Operating margin   23.5 %     25.5 %     28.7 %
        Non-GAAP Operating margin   32.0 %     31.9 %     34.3 %
        GAAP Income tax benefit (provision) $ (116 )   $ (130 )   $ (154 )
        Income tax effect   32       13       15  
        Non-GAAP Income tax benefit (provision) $ (148 )   $ (143 )   $ (169 )
        GAAP Net income (loss) attributable to stockholders $ 445     $ 490     $ 658  
        PPA Effects   (32 )     (40 )     (41 )
        Restructuring   (67 )     (14 )     (6 )
        Share-based compensation   (117 )     (127 )     (114 )
        Other incidentals   (32 )     —       (14 )
        Other adjustments:          
        Adjustments to financial income (expense)   (1 )     (12 )     (8 )
        Income tax effect   32       13       15  
        Results relating to equity-accounted investees, excluding Foundry investees1   (28 )     (3 )     (3 )
        Non-GAAP Net income (loss) attributable to stockholders $ 690     $ 673     $ 829  
                   
                   
        Additional Information:          
        1. Refer to Table 7 below for further information regarding the results relating to equity-accounted investees.
                   
        GAAP net income (loss) per common share attributable to stockholders – diluted $ 1.75     $ 1.92     $ 2.54  
        PPA Effects   (0.12 )     (0.16 )     (0.16 )
        Restructuring   (0.27 )     (0.05 )     (0.02 )
        Share-based compensation   (0.46 )     (0.50 )     (0.44 )
        Other incidentals   (0.13 )     —       (0.06 )
        Other adjustments:          
        Adjustments to financial income (expense)   —       (0.05 )     (0.03 )
        Income tax effect   0.12       0.05       0.06  
        Results relating to equity-accounted investees, excluding Foundry investees1   (0.11 )     (0.01 )     (0.01 )
        Non-GAAP net income (loss) per common share attributable to stockholders – diluted $ 2.72     $ 2.64     $ 3.20  
                   
                   
        Additional Information:          
        1. Refer to Table 7 below for further information regarding the results relating to equity-accounted investees.

        NXP Semiconductors
        Table 5: Financial Reconciliation of GAAP to non-GAAP Financial income (expense) (unaudited)

        ($ in millions) Three months ended
          June 29, 2025   March 30, 2025   June 30, 2024
        GAAP Financial income (expense) $ (86 )   $ (92 )   $ (75 )
        Foreign exchange loss   (7 )     (3 )     (2 )
        Other financial expense   6       (9 )     (6 )
        Non-GAAP Financial income (expense) $ (85 )   $ (80 )   $ (67 )
                   
         

        NXP Semiconductors
        Table 6: Financial Reconciliation of GAAP to non-GAAP Other income (expense) (unaudited)

        ($ in millions) Three months ended
          June 29, 2025   March 30, 2025   June 30, 2024
        GAAP Other income (expense) $ 1     $ 18     $ (4 )
        PPA effects   —       (5 )     —  
        Other incidentals   (2 )     24       (2 )
        Non-GAAP Other income (expense) $ 3     $ (1 )   $ (2 )
                   

        NXP Semiconductors
        Table 7: Financial Reconciliation of GAAP to non-GAAP Results relating to equity-accounted investees (unaudited)

        ($ in millions) Three months ended
          June 29, 2025   March 30, 2025   June 30, 2024
        GAAP Results relating to equity-accounted investees $ (28 )   $ (4 )   $ (3 )
        Results of equity-accounted investees, excluding Foundry investees1   (28 )     (3 )     (3 )
        Non-GAAP Results relating to equity-accounted investees $ —     $ (1 )   $ —  
                   
        Additional Information:
        1. We adjust our results relating to equity-accounted investees for those results from investments over which NXP has significant influence, but not control, and whose business activities are not related to the core operating performance of NXP. Our equity-investments in foundry partners are part of our long-term core operating performance and accordingly those results comprise the Non-GAAP Results relating to equity-accounted investees.

        NXP Semiconductors
        Table 8: Adjusted EBITDA and Free Cash Flow (unaudited)

        ($ in millions) Three months ended
          June 29, 2025   March 30, 2025   June 30, 2024
        GAAP Net income (loss) $ 457     $ 497     $ 664  
        Reconciling items to EBITDA (Non-GAAP)          
        Financial (income) expense   86       92       75  
        (Benefit) provision for income taxes   116       130       154  
        Depreciation and impairment   143       143       146  
        Amortization   64       66       67  
        EBITDA (Non-GAAP) $ 866     $ 928     $ 1,106  
        Reconciling items to adjusted EBITDA (Non-GAAP)          
        Results of equity-accounted investees, excluding Foundry investees1   28       3       3  
        Purchase accounting effect on asset sale   —       5       —  
        Restructuring   67       14       6  
        Share-based compensation   117       127       114  
        Other incidental items2   25       (4 )     14  
        Adjusted EBITDA (Non-GAAP) $ 1,103     $ 1,073     $ 1,243  
        Trailing twelve month adjusted EBITDA (Non-GAAP) $ 4,745     $ 4,885     $ 5,297  
                   
        Additional Information:          
        1. Refer to Table 7 above for further information regarding the results relating to equity-accounted investees.
        2. Excluding from total other incidental items, charges included in depreciation, amortization or impairment reconciling items:
        • other incidental items
        		   7       4       —  
                   
                   
                   
        ($ in millions) Three months ended
          June 29, 2025   March 30, 2025   June 30, 2024
        Net cash provided by (used for) operating activities $ 779     $ 565     $ 761  
        Net capital expenditures on property, plant and equipment   (83 )     (138 )     (184 )
        Non-GAAP free cash flow $ 696     $ 427     $ 577  
        Trailing twelve month non-GAAP free cash flow $ 2,008     $ 1,889     $ 2,954  
        Trailing twelve month non-GAAP free cash flow as percent of Revenue   17 %     15 %     23 %
                   

      The MIL Network –

  • MIL-OSI: 2UniFi and Nav Team Up to Power Growth for Small Business

    Source: GlobeNewswire (MIL-OSI)

    DENVER, July 21, 2025 (GLOBE NEWSWIRE) — National Bank Holdings Corporation (NYSE: NBHC) is pleased to announce a strategic partnership to support 2UniFi, an innovative financial ecosystem for business launched this month. As part of the initial collaboration, 2UniFi will be integrated within the Nav marketplace for small business deposit and lending solutions. With over 1 million users, Nav is the leading credit and financial health platform for small business owners, offering a suite of tools to help entrepreneurs access, monitor, and build their business credit. Additionally, Nav provides small business owners with a wealth of short and long term financing options to fuel their growth.

    Tim Laney, Chairman and CEO of NBHC and Founder of 2UniFi stated, “2UniFi is building a comprehensive ecosystem of financial solutions paired with data driven insights with the goal of transforming the way small and medium-sized businesses access the U.S. banking system. This partnership with Nav will help propel 2UniFi’s growth by expanding our reach to small businesses through Nav’s deposit and lending marketplace.”

    With a shared vision to support the success of small and medium-sized businesses in the U.S., Nav and 2UniFi will leverage their unique capabilities to bring robust solutions to market. 2UniFi will integrate Nav’s financial health and credit insights inside the 2UniFi experience.

    NBHC has also made a $5 million strategic investment in Nav. Laney, who will serve as an observer on Nav’s board, added, “Small businesses are essential for a healthy and thriving economy. By integrating Nav’s business credit insights into the 2UniFi experience, we are empowering everyday entrepreneurs with the financial health tools they need to further grow their business.”

    “At Nav, we’re committed to providing small business owners with the best service and products they need to ensure their businesses are not only able to survive, but thrive for years,” said Levi King, Nav CEO, Co-Founder and Chairman of the Board. “This partnership with 2UniFi not only affords us the opportunity to provide a truly differentiated offering to our customers, but it opens the door for even more small business owners to access resources that many of them so desperately need.”

    Tim Laney added, “In the course of partnership discussions, our team developed a deep appreciation for the proven experience Levi and his team have in the financial technology arena. We look forward to the positive impact we can make together for business owners and operators.”

    About National Bank Holdings Corporation

    National Bank Holdings Corporation is a bank holding company created to build a leading community bank franchise delivering high quality client service and committed to stakeholder results. Through its bank subsidiaries, NBH Bank and Bank of Jackson Hole Trust, National Bank Holdings Corporation operates a network of over 85 banking centers, serving individual consumers, small, medium and large businesses, and government and non-profit entities. Its banking centers are located in its core footprint of Colorado, the greater Kansas City region, Utah, Wyoming, Texas, New Mexico and Idaho. Its comprehensive residential mortgage banking group primarily serves the bank’s core footprint. Its trust business is operated in its core footprint under the Bank of Jackson Hole Trust charter. NBH Bank operates under a single state charter through the following brand names as divisions of NBH Bank: in Colorado, Community Banks of Colorado and Community Banks Mortgage; in Kansas and Missouri, Bank Midwest and Bank Midwest Mortgage; in Utah, Texas, New Mexico and Idaho, Hillcrest Bank and Hillcrest Bank Mortgage; and in Wyoming, Bank of Jackson Hole and Bank of Jackson Hole Mortgage. Additional information about National Bank Holdings Corporation can be found at www.nationalbankholdings.com.

    For more information visit: cobnks.com, bankmw.com, hillcrestbank.com, bankofjacksonhole.com, or nbhbank.com. Or connect with any of our brands on LinkedIn.

    About Nav Technologies, Inc.
    Nav is the leading credit and financial health platform for small businesses. Nav’s unique financial health platform shows cash flow and credit insights alongside suggested financing options, and is the only place small business owners can build and manage business credit and see what financing they can qualify for before they apply. Nav has raised more than $100 million in capital from investors including Goldman Sachs Principal Strategic Investments, Kleiner Perkins, Experian Ventures, and Point72 Ventures.

    Contact:                  
    Analysts/Institutional Investors:
    Emily Gooden, 720-554-6640
    Chief Accounting Officer and Investor Relations Director
    ir@nationalbankholdings.com    		   Media:
    Jody Soper, 303-784-5925
    Chief Marketing Officer
    Jody.Soper@nbhbank.com
         
    Nicole Van Denabeele, 720-529-3370
    Chief Financial Officer
    ir@nationalbankholdings.com    		    
         

    Source: National Bank Holdings Corporation

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ea449cea-5438-4ef9-b2c5-1f3b752a8166

    The MIL Network –

  • MIL-OSI: Gouverneur Bancorp, Inc. Announces Fiscal 2025 Third Quarter and Nine Months Results

    Source: GlobeNewswire (MIL-OSI)

    GOUVERNEUR, N.Y., July 21, 2025 (GLOBE NEWSWIRE) — Gouverneur Bancorp, Inc. (OTCQB: GOVB) (the “Company”), the holding company for Gouverneur Savings and Loan Association (the “Bank”), today announced the Company’s results for the third quarter and nine months of fiscal year 2025, ended June 30, 2025.

    The Company reported net income of $217,000, or $0.22 per basic and diluted share, for the quarter ended June 30, 2025, compared to net income of $183,000, or $0.17 per basic and diluted share, for the quarter ended June 30, 2024. The Company also reported net income of $495,000, or $0.48 per basic and diluted share, for the nine months ended June 30, 2025, compared to net income of $403,000, or $0.38 per basic and diluted share, for the nine months ended June 30, 2024.

    Summary of Financial Results

    Our results of operations depend primarily on our net interest income. Net interest income is the difference between the interest income we earn on our interest-earning assets, consisting primarily of loans and securities, and the interest we pay on our interest-bearing liabilities, consisting of savings and club accounts, NOW and money market accounts and time certificates. Our results of operations also are affected by our provisions for credit losses, non-interest income and non-interest expense. Non-interest income currently consists primarily of service charges, earnings on bank owned life insurance and loan servicing fees. Non-interest expense currently consists primarily of salaries and employee benefits, directors’ fees, occupancy and data processing expense and professional fees. Our results of operations also may be affected significantly by other factors including, but not limited to, general and local economic and competitive conditions, changes in market interest rates, governmental policies and actions of regulatory authorities.

    Total assets decreased by $0.6 million or 0.27%, from $197.3 million at September 30, 2024 to $196.7 million at June 30, 2025. Securities available for sale decreased $3.6 million, or 8.05%, from $45.3 million as of September 30, 2024 to $41.7 million as of June 30, 2025 as the Bank received principal paydowns and maturities along with a decrease in the market value as market rates fluctuate. Net loans increased by $1.6 million or 1.35%, from September 30, 2024 to June 30, 2025. The Bank recorded a $9,000 provision for credit loss on loans and a $3,000 provision for credit loss on unfunded commitments for the three months ended June 30, 2025, compared to no provision for credit loss recorded during the same period in the prior year. The Bank made a $27,000 provision for credit loss during the first nine months of fiscal 2025, a decrease from the $70,000 provision made in the same period of fiscal 2024. The higher provision in fiscal 2024 was primarily due to a few charge-offs recorded in the first quarter of that year.

    Deposits decreased $0.5 million or 0.31%, to $159.4 million at June 30, 2025 from $159.9 million at September 30, 2024 due to seasonal fluctuations. The Bank currently holds no Federal Home Loan Bank (FHLB) advances or brokered deposits.

    Shareholders’ equity was $31.4 million at June 30, 2025, representing a decrease of 4.18% from the September 30, 2024 balance of $32.8 million. The decrease in shareholders’ equity was primarily a result of a $1.1 million decrease to the market value of the securities portfolio included in accumulated other comprehensive loss, and the repurchase of common stock by the Company. The Company declared dividends of $0.16 per share totaling $173,000 during the nine months ended June 30, 2025. The Company’s book value was $29.74 per common share based on 1,107,134 shares issued and 1,055,671 shares outstanding at June 30, 2025. The Company’s book value was $29.59 per common share based on 1,107,134 shares issued and outstanding at September 30, 2024.

    Total interest income increased $26,000, or 1.21%, from $2.1 million for the quarter ended June 30, 2024 to $2.2 million for the quarter ended June 30, 2025 due to an increase in loan income, partially offset by a decrease in interest income from investments in taxable and non-taxable securities. For the nine months ended June 30, 2025, total interest income increased $56,000, or 0.87%, from $6.4 million for the nine months ended June 30, 2024 to $6.5 million. Interest income on loans increased $60,000, or 3.61%, for the quarter ended June 30, 2025. For the nine months ended June 30, 2025, interest income on loans increased $203,000, or 4.15%, from the same period in fiscal 2024 due to an increase in market rates resulting in higher interest rates on loan originations and repricing, along with a slight increase in loan volume.

    Total interest expense decreased $27,000, or 6.98%, from $387,000 for the quarter ended June 30, 2024 to $360,000 for the quarter ended June 30, 2025. For the nine months ended June 30, 2025, total interest expense increased $103,000, or 9.83%, from $1.0 million for the nine months ended June 30, 2024 to $1.2 million. Interest expense on deposits increased $39,000, from $321,000 for the quarter ended June 30, 2024 to $360,000 for the quarter ended June 30, 2025. For the nine months ended June 30, 2025, interest expense on deposits increased $295,000, from $856,000 for the nine months ended June 30, 2024 to $1.2 million. Interest expense on FHLB borrowings decreased $98,000 and $304,000 for the three and nine months ended June 30, 2025, respectively, compared to the same periods in fiscal 2024 as the Bank currently holds no FHLB advances as of June 30, 2025. The decrease in total interest expense for the three months ended June 30, 2025 was due to the decrease in interest expense on FHLB borrowings, partially offset by an increase in interest expense on deposits. The increase in total interest expense for the nine months ended June 30, 2025 was due to the increase in interest on deposits, resulting from higher deposit rates from the respective prior year periods, and a decrease in income earned on swap agreements hedged against certain borrowings partially offset by a decrease in borrowing interest expense.

    Net interest margin, which represents net interest income as a percentage of average interest-earning assets, was 4.15% and 4.03% for the quarters ended June 30, 2025 and 2024, and 4.07% and 4.03% for the nine months ended June 30, 2025 and 2024, respectively. Net interest margin increased due to an increase in interest income and a slight decrease in interest-earning assets.

    Non-interest income increased $65,000, from $191,000 for the quarter ended June 30, 2024 to $256,000 for the quarter ended June 30, 2025. For the nine months ended June 30, 2025, non-interest income increased $180,000 to $708,000, from $528,000 for the nine months ended June 30, 2024. This includes the unrealized market value loss on swap agreements held with FHLBNY of $9,000 and $208,000 for the nine months ended June 30, 2025 and 2024, respectively. Other non-interest income increased $73,000 during the nine months ended June 30, 2025 compared to the same period last year, primarily due to the recognition of additional income from a tax-related refund, including a Mortgage Recording Tax (MRT) credit.

    Non-interest expense increased $16,000 for the three months ended June 30, 2025, remaining at $1.8 million compared to the three months ended June 30, 2024. The total increase included a $39,000 increase in foreclosed asset expenses primarily due to legal fees incurred on various property foreclosures this fiscal year, whereas the prior period included a gain on the sale of a foreclosed property. For the nine months ended June 30, 2025, non-interest expense increased $10,000 compared to the same period in fiscal 2024. Other non-interest expense increased $188,000 during the nine months ended June 30, 2025, primarily due to operational expenses related to the Company’s operations as a public company. Total non-interest expense included a decrease in salaries and employee benefits of $66,000 and a $18,000 decrease in earnings on the Bank’s deferred fees plan due to fluctuations in market rates. Data processing and occupancy expenses also decreased during the nine months ended June 30, 2025.

    Financial and Operational Metrics (GAAP) – The following information is preliminary and based on the Company’s data available at the time of presentation.

      06/30/2025   09/30/2024
      (In Thousands)
      (unaudited)    
    Statement of Condition      
    Assets      
    Cash and Cash Equivalents $ 7,205     $ 6,370  
    Securities Available-for-Sale   41,697       45,348  
    Loans Receivable, Net of Allowance for Credit Losses and Deferred Loan Fees   125,933       124,257  
    Premises and Equipment, Net   2,878       2,924  
    Goodwill and Intangible Assets   5,623       5,901  
    Accrued Interest Receivable and Other Assets   13,383       12,460  
    Total Assets $ 196,719     $ 197,260  
           
    Liabilities and Shareholders’ Equity      
    Deposits $ 159,414     $ 159,902  
    Accrued Interest Payable and Other Liabilities   5,908       4,593  
    Total Liabilities   165,322       164,495  
           
    Common Stock   11       11  
    Additional Paid in Capital   6,505       6,487  
    Unearned Common Stock held by ESOP   (501 )     (540 )
    Retained Earnings   28,735       28,413  
    Accumulated Other Comprehensive Loss   (2,721 )     (1,606 )
    Authorized but Unissued Stock   (632 )     –  
    Total Shareholders’ Equity   31,397       32,765  
    Total Liabilities and Shareholders’ Equity $ 196,719     $ 197,260  
           
      For the Quarter Ended   For the Nine Months Ended
      06/30/2025   06/30/2024   06/30/2025   06/30/2024
      (In Thousands except per share data)
      (unaudited)
    Statement of Earnings              
    Interest Income $ 2,170     $ 2,144     $ 6,473     $ 6,417  
    Interest Expense   360       387       1,151       1,048  
    Net Interest Income   1,810       1,757       5,322       5,369  
                   
    Provision for Credit Loss   12       –       27       70  
    Net Interest Income After Provision for Credit Loss   1,798       1,757       5,295       5,299  
                   
    Non-interest Income   256       191       708       528  
    Non-interest Expenses   1,786       1,770       5,474       5,464  
                   
    Income Before Income Tax Expense (Benefit)   268       178       529       363  
    Income Tax Expense (Benefit)   51       (5 )     34       (40 )
    Net Income $ 217     $ 183     $ 495     $ 403  
                   
    Performance Ratios              
    Basic and Diluted Earnings per Share $ 0.22     $ 0.17     $ 0.48     $ 0.38  
    Annualized Return on Average Assets   0.44 %     0.37 %     0.34 %     0.27 %
    Annualized Return on Average Equity   2.79 %     2.33 %     2.08 %     1.79 %
    Net Interest Spread   3.98 %     3.83 %     3.87 %     3.86 %
    Net Interest Margin   4.15 %     4.03 %     4.07 %     4.03 %
                                   

    About Gouverneur Bancorp, Inc.

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

    Forward-Looking Statements

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

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

    For more information, contact Charles C. Van Vleet, Jr., Interim President and Chief Executive Officer at (315) 287-2600.

    The MIL Network –

  • MIL-Evening Report: A popular sweetener could be damaging your brain’s defences, says recent study

    Source: The Conversation (Au and NZ) – By Havovi Chichger, Professor, Biomedical Science, Anglia Ruskin University

    Found in everything from protein bars to energy drinks, erythritol has long been considered a safe alternative to sugar. But new research suggests this widely used sweetener may be quietly undermining one of the body’s most crucial protective barriers – with potentially serious consequences for heart health and stroke risk.

    A recent study from the University of Colorado suggests erythritol may damage cells in the blood-brain barrier, the brain’s security system that keeps out harmful substances while letting in nutrients. The findings add troubling new detail to previous observational studies that have linked erythritol consumption to increased rates of heart attack and stroke.

    In the new study, researchers exposed blood-brain barrier cells to levels of erythritol typically found after drinking a soft drink sweetened with the compound. They saw a chain reaction of cell damage that could make the brain more vulnerable to blood clots – a leading cause of stroke.

    Get your news from actual experts, straight to your inbox. Sign up to our daily newsletter to receive all The Conversation UK’s latest coverage of news and research, from politics and business to the arts and sciences.

    Erythritol triggered what scientists call oxidative stress, flooding cells with harmful, highly reactive molecules known as free radicals, while simultaneously reducing the body’s natural antioxidant defences. This double assault damaged the cells’ ability to function properly, and in some cases killed them outright.

    But perhaps more concerning was erythritol’s effect on the blood vessels’ ability to regulate blood flow. Healthy blood vessels act like traffic controllers, widening when organs need more blood – during exercise, for instance – and tightening when less is required. They achieve this delicate balance through two key molecules: nitric oxide, which relaxes blood vessels, and endothelin-1, which constricts them.

    The study found that erythritol disrupted this critical system, reducing nitric oxide production while ramping up endothelin-1. The result would be blood vessels that remain dangerously constricted, potentially starving the brain of oxygen and nutrients. This imbalance is a known warning sign of ischaemic stroke – the type caused by blood clots blocking vessels in the brain.

    Even more alarming, erythritol appeared to sabotage the body’s natural defence against blood clots. Normally, when clots form in blood vessels, cells release a “clot buster” called tissue plasminogen activator that dissolves the blockage before it can cause a stroke. But the sweetener blocked this protective mechanism, potentially leaving clots free to wreak havoc.

    The laboratory findings align with troubling evidence from human studies. Several large-scale observational studies have found that people who regularly consume erythritol face significantly higher risks of cardiovascular disease, including heart attacks and strokes. One major study tracking thousands of participants found that those with the highest blood levels of erythritol were roughly twice as likely to experience a major cardiac event.

    However, the research does have limitations. The experiments were conducted on isolated cells in laboratory dishes rather than complete blood vessels, which means the cells may not behave exactly as they would in the human body. Scientists acknowledge that more sophisticated testing – using advanced “blood vessel on a chip” systems that better mimic real physiology – will be needed to confirm these effects.

    The findings are particularly significant because erythritol occupies a unique position in the sweetener landscape. Unlike artificial sweeteners such as aspartame or sucralose, erythritol is technically a sugar alcohol – a naturally occurring compound that the body produces in small amounts. This classification helped it avoid inclusion in recent World Health Organization guidelines that discouraged the use of artificial sweeteners for weight control.

    Erythritol has also gained popularity among food manufacturers because it behaves more like sugar than other alternatives. While sucralose is 320 times sweeter than sugar, erythritol provides only about 80% of sugar’s sweetness, making it easier to use in recipes without creating an overpowering taste. It’s now found in thousands of products, especially in many “sugar-free” and “keto-friendly” foods.

    Erythritol can be found in many keto-friendly products, such a protein bars.
    Stockah/Shutterstock.com

    Trade-off

    Regulatory agencies, including the European Food Standards Agency and the US Food and Drug Administration, have approved erythritol as safe for consumption. But the new research adds to a growing body of evidence suggesting that even “natural” sugar alternatives may carry unexpected health risks.

    For consumers, the findings raise difficult questions about the trade-offs involved in sugar substitution. Sweeteners like erythritol can be valuable tools for weight management and diabetes prevention, helping people reduce calories and control blood sugar spikes. But if regular consumption potentially weakens the brain’s protective barriers and increases cardiovascular risk, the benefits may come at a significant cost.

    The research underscores a broader challenge in nutritional science: understanding the long-term effects of relatively new food additives that have become ubiquitous in the modern diet. While erythritol may help people avoid the immediate harms of excess sugar consumption, its effect on the blood-brain barrier suggests that frequent use could be quietly compromising brain protection over time.

    As scientists continue to investigate these concerning links, consumers may want to reconsider their relationship with this seemingly innocent sweetener – and perhaps question whether any sugar substitute additive is truly without risk.

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

    – ref. A popular sweetener could be damaging your brain’s defences, says recent study – https://theconversation.com/a-popular-sweetener-could-be-damaging-your-brains-defences-says-recent-study-261500

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Africa’s minerals are being bartered for security: why it’s a bad idea

    Source: The Conversation (Au and NZ) – By Hanri Mostert, SARChI Chair for Mineral Law in Africa, University of Cape Town

    A US-brokered peace deal between the Democratic Republic of Congo (DRC) and Rwanda binds the two African nations to a worrying arrangement: one where a country signs away its mineral resources to a superpower in return for opaque assurances of security.

    The peace deal, signed in June 2025, aims to end three decades of conflict between the DRC and Rwanda.

    A key part of the agreement binds both nations to developing a regional economic integration framework. This arrangement would expand cooperation between the two states, the US government and American investors on “transparent, formalized end-to-end mineral chains”.

    Despite its immense mineral wealth, the DRC is among the five poorest countries in the world. It has been seeking US investment in its mineral sector.

    The US has in turn touted a potential multi-billion-dollar investment programme to anchor its mineral supply chains in the traumatised and poor territory.

    The peace that the June 2025 deal promises, therefore, hinges on chaining mineral supply to the US in exchange for Washington’s powerful – but vaguely formulated – military oversight.

    The peace agreement further establishes a joint oversight committee – with representatives from the African Union, Qatar and the US – to receive complaints and resolve disputes between the DRC and Rwanda.

    But beyond the joint oversight committee, the peace deal creates no specific security obligations for the US.

    The relationship between the DRC and Rwanda has been marred by war and tension since the bloody First (1996-1997) and Second (1998-2003) Congo wars. At the heart of much of this conflict is the DRC’s mineral wealth. It has fuelled competition, exploitation and armed violence.

    This latest peace deal introduces a resources-for-security arrangement. Such deals aren’t new in Africa. They first emerged in the early 2000s as resources-for-infrastructure transactions. Here, a foreign state would agree to build economic and social infrastructure (roads, ports, airports, hospitals) in an African state. In exchange, it would get a major stake in a government-owned mining company. Or gain preferential access to the host country’s minerals.

    We have studied mineral law and governance in Africa for more than 20 years. The question that emerges now is whether a US-brokered resources-for-security agreement will help the DRC benefit from its resources.

    Based on our research on mining, development and sustainability, we believe this is unlikely.

    This is because resources-for-security is the latest version of a resource-bartering approach that China and Russia pioneered in countries such as Angola, the Central African Republic and the DRC.

    Resource bartering in Africa has eroded the sovereignty and bargaining power of mineral-rich nations such as the DRC and Angola.

    Further, resources-for-security deals are less transparent and more complicated than prior resource bartering agreements.

    DRC’s security gaps

    The DRC is endowed with major deposits of critical minerals like cobalt, copper, lithium, manganese and tantalum. These are the building blocks for 21st century technologies: artificial intelligence, electric vehicles, wind energy and military security hardware. Rwanda has less mineral wealth than its neighbour, but is the world’s third-largest producer of tantalum, used in electronics, aerospace and medical devices.

    For almost 30 years, minerals have fuelled conflict and severe violence, especially in eastern DRC. Tungsten, tantalum and gold (referred to as 3TG) finance and drive conflict as government forces and an estimated 130 armed groups vie for control over lucrative mining sites. Several reports and studies have implicated the DRC’s neighbours – Rwanda and Uganda – in supporting the illegal extraction of 3TG in this region.

    The DRC government has failed to extend security over its vast (2.3 million square kilometres) and diverse territory (109 million people, representing 250 ethnic groups). Limited resources, logistical challenges and corruption have weakened its armed forces.

    This context makes the United States’ military backing enormously attractive. But our research shows there are traps.

    What states risk losing

    Resources-for-infrastructure and resources-for-security deals generally offer African nations short-term stability, financing or global goodwill. However, the costs are often long-term because of an erosion of sovereign control.

    Here’s how this happens:

    Examples of loss or near-loss of sovereignty from these sorts of deals abound in Africa.

    For instance, Angola’s US$2 billion oil-backed loan from China Eximbank in 2004. This was repayable in monthly deliveries of oil, with revenues directed to Chinese-controlled accounts. The loan’s design deprived Angolan authorities of decision-making power over that income stream even before the oil was extracted.

    These deals also fragment accountability. They often span multiple ministries (such as defence, mining and trade), avoiding robust oversight or accountability. Fragmentation makes resource sectors vulnerable to elite capture. Powerful insiders can manipulate agreements for private gain.

    In the DRC, this has created a violent kleptocracy, where resource wealth is systematically diverted away from popular benefit.

    Finally, there is the risk of re-entrenching extractive trauma. Communities displaced for mining and environmental degradation in many countries across Africa illustrate the long-standing harm to livelihoods, health and social cohesion.

    These are not new problems. But where extraction is tied to security or infrastructure, such damage risks becoming permanent features, not temporary costs.

    What needs to change

    Critical minerals are “critical” because they’re hard to mine or substitute. Additionally, their supply chains are strategically vulnerable and politically exposed. Whoever controls these minerals controls the future. Africa must make sure it doesn’t trade that future away.

    In a world being reshaped by global interests in critical minerals, African states must not underestimate the strategic value of their mineral resources. They hold considerable leverage.

    But leverage only works if it is wielded strategically. This means:

    • investing in institutional strength and legal capacity to negotiate better deals

    • demanding local value creation and addition

    • requiring transparency and parliamentary oversight for minerals-related agreements

    • refusing deals that bypass human rights, environmental or sovereignty standards.

    Africa has the resources. It must hold on to the power they wield.

    Hanri Mostert receives funding from the National Research Foundation (NRF) of South Africa. She is a member of the Expropriation Expert Group and a steering committee member of the International Bar Association’s (IBA) Academic Advisory Group (AAG) in the Sector for Energy, Environmental, Resources and Infrastructure Law (SEERIL).

    Tracy-Lynn Field receives funding from the Claude Leon Foundation. She is a non-executive director of the Wildlife and Environment Society of South Africa.

    – ref. Africa’s minerals are being bartered for security: why it’s a bad idea – https://theconversation.com/africas-minerals-are-being-bartered-for-security-why-its-a-bad-idea-260594

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: PBS and NPR are generally unbiased, independent of government propaganda and provide key benefits to US democracy

    Source: The Conversation (Au and NZ) – By Stephanie A. (Sam) Martin, Frank and Bethine Church Endowed Chair of Public Affairs, Boise State University

    Congress’ cuts to public broadcasting will diminish the range and volume of the free press and the independent reporting it provides. MicroStockHub-iStock/Getty Images Plus

    Champions of the almost entirely party-line vote in the U.S. Senate to erase US$1.1 billion in already approved funds for the Corporation for Public Broadcasting called their action a refusal to subsidize liberal media.

    “Public broadcasting has long been overtaken by partisan activists,” said U.S. Sen. Ted Cruz of Texas, insisting there is no need for government to fund what he regards as biased media. “If you want to watch the left-wing propaganda, turn on MSNBC,” Cruz said.

    Accusing the media of liberal bias has been a consistent conservative complaint since the civil rights era, when white Southerners insisted news outlets were slanting their stories against segregation. During his presidential campaign in 1964, U.S. Sen. Barry Goldwater of Arizona complained that the media was against him, an accusation that has been repeated by every Republican presidential candidate since.

    But those charges of bias rarely survive empirical scrutiny.

    As chair of a public policy institute devoted to strengthening deliberative democracy, I have written two books about the media and the presidency, and another about media ethics. My research traces how news institutions shape civic life and why healthy democracies rely on journalism that is independent of both market pressure and partisan talking points.

    That independence in the United States – enshrined in the press freedom clause of the First Amendment – gives journalists the ability to hold government accountable, expose abuses of power and thereby support democracy.

    GOP Sen. Ted Cruz speaks to reporters as Senate Republicans vote on President Donald Trump’s request to cancel about $9 billion in foreign aid and public broadcasting spending on July 16, 2025.
    AP Photo/J. Scott Applewhite

    Trusting independence

    Ad Fontes Media, a self-described “public benefit company” whose mission is to rate media for credibility and bias, have placed the reporting of “PBS NewsHour” under 10 points left of the ideological center. They label it as both “reliable” and based in “analysis/fact.” “Fox and Friends,” by contrast, the popular morning show on Fox News, is nearly 20 points to the right. The scale starts at zero and runs 42 points to the left to measure progressive bias and 42 points to the right to measure conservative bias. Ratings are provided by three-person panels comprising left-, right- and center-leaning reviewers.

    A 2020 peer-reviewed study in Science Advances that tracked more than 6,000 political reporters likewise found “no evidence of liberal media bias” in the stories they chose to cover, even though most journalists are more left-leaning than the rest of the population.

    A similar 2016 study published in Public Opinion Quarterly said that media are more similar than dissimilar and, excepting political scandals, “major
    news organizations present topics in a largely nonpartisan manner,
    casting neither Democrats nor Republicans in a particularly favorable
    or unfavorable light    .”

    Surveys show public media’s audiences do not see it as biased. A national poll of likely voters released July 14, 2025, found that 53% of respondents trust public media to report news “fully, accurately and fairly,” while only 35% extend that trust to “the media in general.” A majority also opposed eliminating federal support.

    Contrast these numbers with attitudes about public broadcasters such as MTVA in Hungary or the TVP in Poland, where the state controls most content. Protests in Budapest October 2024 drew thousands demanding an end to “propaganda.” Oxford’s Reuters Institute for the Study of Journalism reports that TVP is the least trusted news outlet in the country.

    While critics sometimes conflate American public broadcasting with state-run outlets, the structures are very different.

    Safeguards for editorial freedom

    In state-run media systems, a government agency hires editors, dictates coverage and provides full funding from the treasury. Public officials determine – or make up – what is newsworthy. Individual media operations survive only so long as the party in power is happy.

    Public broadcasting in the U.S. works in almost exactly the opposite way: The Corporation for Public Broadcasting is a private nonprofit with a statutory “firewall” that forbids political interference.

    More than 70% of the Corporation for Public Broadcasting’s federal appropriation for 2025 of US$1.1 billion flows through to roughly 1,500 independently governed local stations, most of which are NPR or PBS affiliates but some of which are unaffiliated community broadcasters. CPB headquarters retains only about 5% of that federal funding.

    Stations survive by combining this modest federal grant money with listener donations, underwriting and foundation support. That creates a diversified revenue mix that further safeguards their editorial freedom.

    And while stations share content, each also has latitude when it comes to programming and news coverage, especially at the local level.

    As a public-private partnership, individual communities mostly own the public broadcasting system and its affiliate stations. Congress allocates funds, while community nonprofits, university boards, state authorities or other local license holders actually own and run the stations. Individual monthly donors are often called “members” and sometimes have voting rights in station-governance matters. Membership contributions make up the largest share of revenue for most stations, providing another safeguard for editorial independence.

    A host and guest in July 2024 sit inside a recording studio at KMXT, the public radio station on Kodiak Island in Alaska.
    Nathaniel Herz/Northern Journal

    Broadly shared civic commons

    And then there are public media’s critical benefits to democracy itself.

    A 2021 report from the European Broadcasting Union links public broadcasting with higher voter turnout, better factual knowledge and lower susceptibility to extremist rhetoric.

    Experts warn that even small cuts will exacerbate an already pernicious problem with political disinformation in the U.S., as citizens lose access to free information that fosters media literacy and encourages trust across demographics.

    In many ways, public media remains the last broadly shared civic commons. It is both commercial-free and independently edited.

    Another study, by the University of Pennsylvania’s Annenberg School in 2022, affirmed that “countries with independent and well-funded public broadcasting systems also consistently have stronger democracies.”

    The study highlighted how public media works to bridge divides and foster understanding across polarized groups. Unlike commercial media, where the profit motive often creates incentives to emphasize conflict and sensationalism, public media generally seeks to provide balanced perspectives that encourage dialogue and mutual respect. Reports are often longer and more in-depth than those by other news outlets.

    Such attention to nuance provides a critical counterweight to the fragmented, often hyperpartisan news bubbles that pervade cable news and social media. And this skillful, more balanced treatment helps to ameliorate political polarization and misinformation.

    In all, public media’s unique structure and mission make democracy healthier in the U.S. and across the world. Public media prioritizes education and civic enlightenment. It gives citizens important tools for navigating complex issues to make informed decisions – whether those decisions are about whom to vote for or about public policy itself. Maintaining and strengthening public broadcasting preserves media diversity and advances important principles of self-government.

    Congress’ cuts to public broadcasting will diminish the range and volume of the free press and the independent reporting it provides. Ronald Reagan once described a free press as vital for the United States to succeed in its “noble experiment in self-government.” From that perspective, more independent reporting – not less – will prove the best remedy for any worry about partisan spin.

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

    – ref. PBS and NPR are generally unbiased, independent of government propaganda and provide key benefits to US democracy – https://theconversation.com/pbs-and-npr-are-generally-unbiased-independent-of-government-propaganda-and-provide-key-benefits-to-us-democracy-261512

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: Could Rupert Murdoch bring down Donald Trump? A court case threatens more than just their relationship

    Source: The Conversation (Au and NZ) – By Andrew Dodd, Professor of Journalism, Director of the Centre for Advancing Journalism, The University of Melbourne

    If Rupert Murdoch becomes a white knight standing up to a rampantly bullying US president, the world has moved into the upside-down.

    This is, after all, the media mogul whose US television network, Fox News, actively supported Donald Trump’s Big Lie about the 2020 presidential election result and paid out a US$787 million (about A$1.2 billion) lawsuit for doing so.

    It is also the network that supplied several members of Trump’s inner circle, including former Fox host, now controversial Defense Secretary, Pete Hegseth.

    But that is where we are after Trump filed a writ on July 18 after Murdoch’s financial newspaper, The Wall Street Journal, published an article about a hand-drawn card Trump is alleged to have sent to sex offender Jeffrey Epstein in 2003. The newspaper reported:

    A pair of small arcs denotes the woman’s breasts, and the future president’s signature is a squiggly “Donald” below her waist, mimicking pubic hair.

    The Journal said it has seen the letter but did not republish it. The letter allegedly concluded:

    Happy Birthday – and may every day be another wonderful secret.

    The card was apparently Trump’s contribution to a birthday album compiled for Epstein by the latter’s partner Ghislaine Maxwell, who is serving a 20-year sentence after being found guilty of sex trafficking in 2021.

    Trump was furious. He told his Truth Social audience he had warned Murdoch the letter was fake. He wrote, “Mr Murdoch stated that he would take care of it but obviously did not have the power to do so,” referring to Murdoch handing leadership of News Corporation to his eldest son Lachlan in 2023.



    Read more:
    How Rupert Murdoch helped create a monster – the era of Trumpism – and then lost control of it

    Trump is being pincered. On one side, The Wall Street Journal is a respected newspaper that speaks to literate, wealthy Americans who remain deeply sceptical about Trump’s radical initiative on tariffs, which it described in an editorial as “the dumbest trade war in history”.

    On the other side is the conspiracy theory-thirsty MAGA base who have been told for years that there was a massive conspiracy around Epstein’s apparent suicide in 2019 that included the so-called deep state, Democrat elites and, no doubt, the Clintons.

    Trump, who loves pro wrestling as well as adopting its garish theatrics, might characterise his lawsuit against Murdoch as a smackdown to rival Hulk Hogan vs Andre the Giant in the 1980s.

    To adopt wrestling argot, though, it is a rare battle between two heels.

    A friendship of powerful convenience

    Murdoch and Trump’s relationship is longstanding but convoluted. The key to understanding it is that both men are ruthlessly transactional.

    Exposure in Murdoch’s New York Post in the 1980s and ‘90s was crucial to building Trump’s reputation.

    Not that Murdoch particularly likes Trump. Yes, Murdoch attended his second inauguration, albeit in a back row behind the newly favoured big tech media moguls. He was also seen sitting in the Oval Office a few days later looking quite at home.

    But this was pure power-display politics, not the behaviour of a friend.

    Murdoch joined Trump in the Oval Office in February 2025.
    Anna Moneymaker/Getty

    Remember Murdoch’s derision on hearing Trump was considering standing for office before the 2016 election, and his promotion of Ron De Santis in the primaries before Trump’s second term. Murdoch’s political hero has always been Ronald Reagan. Trump has laid waste to the Republican Party of Reagan.

    Murdoch knows what the rest of sane America knows: Trump is downright weird, if not dangerous. This, of course, only makes Murdoch’s complicity in Trump’s rise to power, and Fox News’ continued boosterism of Trump, all the more appalling.

    But, in keeping with Murdoch’s relationship to power throughout his career, what he helps make, he also helps destroy. Perhaps now it’s Trump’s turn to be unmade. As a former Murdoch lieutenant told The Financial Times over the weekend:

    he’s testing out: Is Trump losing his base? And where do I need to be to stay in the heart of the base?

    And here is Murdoch’s great advantage, and his looming threat.

    A double-edged sword

    The advantage comes with the scope of Murdoch’s media empire, which operates like a federation of different mastheads, each with their own market and aspirations. While Fox News panders to the MAGA base, and The New York Post juices its New York audience, The Wall Street Journal speaks, and listens, to business. Each audience has different needs, meaning they’re often presented with the same news in very different ways, or sometimes different news entirely.

    Like a federation, though, News Corp uses its various operations to drive the type of change that affects all its markets.

    It might work like this. The Wall Street Journal breaks a story that’s so shocking it begins to chip away at MAGA’s unquestioning loyalty of Trump. This process is, of course, willingly aided by the rest of the media. The resulting groundswell eventually allows Fox News and the Post to tentatively follow their audiences into questioning, and then perhaps criticising, Trump.

    Fox News audiences could slowly begin to question Trump, or abandon the network entirely.
    NurPhoto/Getty

    The threat is that before that groundswell builds, Murdoch is seriously vulnerable to criticism from a still dominant Trump, who can turn conspiracy-prone audiences away from Fox News with just a social media post. Trump has already been busy doing just that, saying he is looking forward to getting Murdoch onto the witness stand for his lawsuit.

    If the Fox audience decides it’s the proprietor who’s behind this denigration of Trump, they may decide to boycott their own favoured media channel, even though Fox’s programming hasn’t yet started questioning Trump.

    The Murdochs’ fear of audience backlash was a major factor in Fox’s promulgation of the Big Lie after Trump’s defeat in 2020. The fear their audience might defect to Newsmax or some other right-wing media outfit is just as real today.

    History littered with fakery

    We also need to consider that Trump might be right. What if the letter is a fake?

    Murdoch has form when it comes to high-profile exposés that turn out to be fiction. Who can forget the Hitler Diaries in 1983, which we now know Murdoch knew were fake before he published.

    Think also of the Pauline Hanson photos, allegedly of her posing in lingerie, all of which were quickly proved to be fake after they were published by Murdoch’s Australian tabloids in 2009.

    There was also The Sun’s despicable and wilfully wrong campaign against Elton John in 1987 and the same paper’s continued denigration of the people of Liverpool following the Hillsborough stadium disaster in 1989.

    But while Murdoch’s News Corp has a history of confection and fakery, the Wall Street Journal has a reputation for straight reportage, albeit through a conservative lens. Since Murdoch bought it in 2007, it has been engaged in its own internal battle for editorial standards.

    Media rolling over

    What Trump won’t get from Murdoch is the same acquiescence he’s enjoyed from America’s ABC and CBS networks, which have both handed over tens of millions of dollars in defamation settlements following dubious claims by Trump about the nature of their coverage.



    Read more:
    ABC’s and CBS’s settlements with Trump are a dangerous step toward the commander in chief becoming the editor-in-chief

    In December 2024, ABC’s owner Disney settled and agreed to pay US$15 million (A$23 million) to Trump’s presidential library. The president sued after a presenter said Trump was found guilty of raping E. Jean Carroll.

    Trump had actually been found guilty by a jury in a civil trial of sexually abusing and defaming Carroll and was ordered to pay her US$5 million (A$7.6 million).

    CBS’ parent company, Paramount, did similarly after being sued by the president, agreeing in early July to settle and pay US$16 million (A$24.5 million) to Trump’s library. This was despite earlier saying the case was “completely without merit”.

    Beware the legal microscope

    From Trump’s viewpoint, two prominent media companies have been cowed. But his campaign against critical media doesn’t stop there.

    Last week, congress passed a bill cancelling federal funding for the country’s two public-service media outlets, the Public Broadcasting Service (PBS) and National Public Radio (NPR).

    Also last week, CBS announced the cancellation of Stephen Colbert’s stridently critical comedy show, although CBS claims this is just a cost-cutting exercise and not about appeasing a bully in the White House.

    Presuming the reported birthday letter is real, Murdoch will not bend so easily. And that’s when it will be important to pay attention, because at some point Trump’s lawyers will advise him about the dangers of depositions and discovery: the legal processes that force parties to a dispute to reveal what they have and what they know.

    If the Epstein files do implicate Trump, the legal fight won’t last long and the media campaign against him will only intensify.

    Right now we have the spectre of Murdoch joining that other disaffected mogul, Elon Musk, in a moral crusade against Trump, the man they both helped make. The implications are head-spinning.

    As global bullies, the three of them probably deserve each other. But we, the public, surely deserve better than any of them.

    The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    – ref. Could Rupert Murdoch bring down Donald Trump? A court case threatens more than just their relationship – https://theconversation.com/could-rupert-murdoch-bring-down-donald-trump-a-court-case-threatens-more-than-just-their-relationship-261532

    MIL OSI Analysis – EveningReport.nz –

  • MIL-Evening Report: The end of open-plan classrooms: how school design reflects changing ideas in education

    Source: The Conversation (Au and NZ) – By Leon Benade, Professor in the School of Education of Edith Cowan University (ECU), Perth, WA, Edith Cowan University

    skynesher/Getty Imaged

    The end of open-plan classrooms in New Zealand, recently announced by Education Minister Erica Stanford, marks yet another swing of the pendulum in school design.

    Depending on who you ask, these classrooms were an opportunity to foster collaboration and flexibility or an exercise in organised chaos.

    So-called “modern learning environments” – characterised by flexible layouts, fewer walls and sometimes multiple classes and teachers in one space – were vigorously pushed by the National government in 2011.

    The stated goal was to promote flexibility in the way students were taught, encourage collaboration and to accommodate new technology in classrooms.

    But a 2024 ministerial inquiry into school property found complex procurement, design and authorisation processes associated with bespoke designs caused delays, budget overruns and unrealised expectations in many school communities.

    Among the solutions offered by the inquiry was the development of simple but functional schools based on cookie-cutter designs constructed off-site. This recommendation was welcomed by the current National-led government.

    Design influenced by ideology

    The modern, bespoke designs of the past two decades represented a response to technological developments, such as the introduction of digital devices, that changed how students learned.

    This resulted in the steady replacement of traditional school designs from the industrial age with spaces designed for flexibility.

    Those industrial age schools were themselves products of changes in the second half of the 20th century. Since the first school opened in 1843, school architecture in New Zealand had evolved significantly. Early schools featured cramped six-metre by four-metre classrooms which could accommodate more than 30 students.

    By the 1920s, the “Taranaki” and “Canterbury” models included a more generous minimum classroom size of eight metres by seven metres. There was a greater emphasis on light and ventilation. Their larger spaces also recognised changes in teaching styles that encouraged more active and participatory learning.

    By the 1950s, classroom size had grown to ten metres by seven metres. The “Nelson” and “S68” blocks of the 1950s and 1960s provided small self-contained blocks of classrooms that reduced student movement and corridor noise.

    Changes to New Zealand school buildings also reflected global trends. Open-plan schools emerged in North America after 1960. At the same time, there were signs English schools would replace their traditional Victorian-style buildings with classrooms considered more child-centred.

    The goal was to achieve flexible, connected designs to support evolving education philosophies. England’s 1966 Plowden Report on primary education significantly aided this evolution towards progressive styles of teaching and learning, leading to the creation of schools that featured flexibility, connectivity and external-internal flow.

    These schools were the forerunners of “innovative learning environments” and were considered cutting-edge at the time.

    In 2004, the ambitious Building Schools for the Future programme was launched in the United Kingdom. It was designed to replace outdated school facilities considered unfit for preparing students for the 21st century.

    But in 2011, the James Review of Education Capital highlighted a number of issues with the way schools were being built, putting an end to the infrastructure programme.

    That report, like the 2024 New Zealand report, suggested replacing government investment in bespoke school infrastructure with a focus on standardised designs.

    A swing back

    In New Zealand, “modern learning environments” became part of education policy with the Ministry of Education’s School Property Strategy 2011-2021, published in 2011. But the pendulum started to swing back after Labour came to power in 2017.

    Departing from the 2011 strategy, the language of “modern learning environments”, “innovative learning environments” and “flexible learning spaces” largely disappeared. It was replaced in policy documents with “quality learning environments”.

    This shift emphasised physical characteristics such as heating, lighting and acoustics, rather than innovative approaches to teaching and learning.

    Since coming to power, the current National-led coalition has focused on embedding a standardised approach to foundational skills in reading, writing, maths and science.

    While not directly scapegoating open-plan designs for educational underachievement, Erica Stanford said the reforms would ensure learning spaces were “designed to improve student outcomes”.

    But as New Zealand moves back to standardised designs, it is worth considering why modern learning environments were introduced in the first place – the flexibility for new technology and space for collaboration – and what students may lose by a swing back towards the separate classrooms of the past.

    Leon Benade is affiliated with Learning Environments Australasia, Philosophy of Education Society of Australasia (PESA) and The Australian Association for Research in Education (AARE).

    Chris Bradbeer is affiliated with Learning Environments New Zealand/Aotearoa (LENZ), and Learning Environments Australasia (LEA).

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

    – ref. The end of open-plan classrooms: how school design reflects changing ideas in education – https://theconversation.com/the-end-of-open-plan-classrooms-how-school-design-reflects-changing-ideas-in-education-261359

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Africa: Minister of State and Ministry of Foreign Affairs: Responsibility for Implementing DRC Peace Agreement Lies with Both Parties

    Source: Government of Qatar

    Doha, July 19, 2025

    HE Minister of State at the Ministry of Foreign Affairs, Dr. Mohammed bin Abdulaziz bin Saleh Al Khulaifi, affirmed that the responsibility for implementing the agreement between the Government of the Democratic Republic of the Congo (DRC) and the Congo River Alliance/March 23 Movement lies with both parties. His Excellency emphasized that this achievement represents a firm foundation upon which to build a more secure and stable future for the region.

    Speaking at a press conference following the signing of the Declaration of Principles between the Government of the DRC and the Congo River Alliance/March 23 Movement in Doha today, His Excellency described the declaration as a critical step toward strengthening peace and stability in eastern DRC. It marks the beginning of direct negotiations aimed at achieving a comprehensive peace that addresses the root causes of the conflict. He expressed confidence in the commitment of both parties to uphold the agreement.

    HE Dr. Al Khulaifi underscored the State of Qatar’s role as a neutral and effective mediator, highlighting its efforts to bring the parties closer together and build bridges of understanding. He praised the sense of responsibility demonstrated by both sides in reaching this declaration and expressed appreciation for the trust placed in Qatar to facilitate the process.

    His Excellency commended the substantial support of HE President of the Democratic Republic of the Congo, Felix Tshisekedi, for the peace process, as well as the constructive approach of the Congolese government’s negotiating delegation. He also acknowledged the cooperation of Bernard Bisimwa, Vice President of the Congo River Alliance/M23 Movement, and the movement’s delegation during the talks.

    HE Dr. Al Khulaifi noted that Qatari mediation efforts began in March, when HH the Amir Sheikh Tamim bin Hamad Al-Thani hosted HE President Tshisekedi and HE President of the Republic of Rwanda, Paul Kagame, in Doha. During that meeting, President Tshisekedi expressed his readiness to engage in dialogue with the Congo River Alliance/March 23 Movement.

    Since then, Qatar has hosted direct negotiations between the parties, which were marked by a positive and responsible spirit, grounded in a shared belief in dialogue as the primary path to conflict resolution. These efforts culminated in the signing of the Declaration of Principles.

    Dr. Al Khulaifi stated that the leaders’ meeting in March served as a launching point for this process, leading to a series of positive developments, including the signing of the Washington Agreement between the DRC and Rwanda on June 27, 2025, an agreement that paved the way for today’s declaration.

    He emphasized that the Declaration of Principles is not solely focused on ending violence but also provides a practical roadmap for national reconciliation. It marks the beginning of a new phase of cooperation among various societal components in the DRC, including armed groups that have chosen the path of peace. The declaration also outlines a significant role for the international community in supporting peacebuilding and sustainable development.

    His Excellency noted that the two parties demonstrated a genuine determination to break the cycle of violence and build mutual trust through concrete actions, such as the exchange of prisoners and detainees, the restoration of state authority, and the dignified return of displaced persons and refugees.

    HE Dr. Al Khulaifi expressed the State of Qatar’s gratitude to the African Union and acknowledged the support of the United States of America, particularly the efforts of HE US Presidential Envoy and Senior Advisor for African Affairs, Massad Boulos. He also commended the contributions of HE Chairperson of the African Union Commission, Mahmoud Ali Youssouf.

    Additionally, His Excellency recognized the constructive roles played by the Republic of Rwanda, the French Republic, the United Kingdom, and the Consultative Dialogue Group, as well as the engagement of all regional and international partners backing the process.

    HE Dr. Al Khulaifi affirmed that this initiative reflects Qatar’s steadfast commitment to mediation as a cornerstone of its foreign policy. The State of Qatar remains dedicated to supporting peacemaking efforts, advancing sustainable development, and empowering communities to achieve long-term stability grounded in justice, inclusiveness, and mutual respect.

    He expressed hope that the Declaration of Principles will represent a meaningful step toward lasting peace and sustainable development in the Democratic Republic of the Congo and the wider region.

    For his part, HE Massad Boulos, the US Presidential Envoy and Senior Advisor for African Affairs, praised Qatar’s vital role in facilitating the agreement, stating: “The State of Qatar is known for its pioneering role in resolving conflicts around the world, and we thank it for its essential efforts in this matter.”

    HE Boulos noted that the conflict in the DRC has displaced more than eight million people, and that past initiatives have largely failed to yield results, making the Doha agreement a rare and valuable opportunity to achieve peace.

    He further highlighted Qatar’s diplomatic leadership over the past two decades in facilitating complex peace processes, from Darfur in Sudan, to the Lebanese crisis, the Afghanistan negotiations, and now the DRC.

    HE Boulos emphasized that while the Declaration of Principles marks only the first step, it is a critical one. It addresses core issues such as the immediate and permanent cessation of violence, prisoner exchanges, the restoration of full state authority, and the safe, dignified return of displaced persons and refugees. He called for the launch of direct negotiations to address the roots of the conflict and reach a comprehensive peace agreement, while urging international support for national reconciliation and development in conflict-affected areas.

    MIL OSI Africa –

  • MIL-OSI: Skillful Application of Fundamental Principles Yields Standout Results: TrustCo Announces Net Income Up 19.8%; Net Interest Income up 10.5%

    Source: GlobeNewswire (MIL-OSI)

    Executive Snapshot:

    • Bank-wide financial results:
      • Key metrics for the second quarter 2025:
        • Net income of $15.0 million, or $0.79 diluted earnings per share, increased 19.8% compared to $12.6 million, or $0.66 diluted earnings per share for the second quarter 2024
        • Net interest income of $41.7 million, up 10.5% from $37.8 million for the second quarter 2024
        • Net interest margin of 2.71%, up 18 basis points from 2.53% in second quarter of 2024
        • Average loans were up $115.6 million for the second quarter 2025 compared to the second quarter 2024
        • Average deposits were up $173.4 million for the second quarter 2025 compared to the second quarter 2024
    • Capital position and key ratios:
      • Consolidated equity to assets increased to 10.91% as of June 30, 2025 from 10.73% as of June 30, 2024
      • Book value per share as of June 30, 2025 was $36.75, up from $34.46 as of June 30, 2024
      • 169 thousand shares of TrustCo common stock were purchased under the stock repurchase program during the second quarter 2025
    • Trustco Financial Services and Wealth Management income:
      • Fees increased to $1.8 million, or by 13.0%, compared to second quarter 2024
      • Assets under management increased to $1.19 billion, or by 8.2%, compared to second quarter 2024

    GLENVILLE, N.Y., July 21, 2025 (GLOBE NEWSWIRE) — TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced strong financial results for the second quarter of 2025 underscored by rising net interest income, continued margin expansion, and accelerated loan growth across key portfolios. Net interest income increased 10.5% year over year to $41.7 million, driven by the ongoing repricing of the loan portfolio at higher yields and disciplined management of deposit costs, which remained well-controlled despite sustained competitive pressures. Net interest margin expanded to 2.71% from 2.53% in the prior year period, reflecting improved asset yields and prudent deposit pricing strategies. This resulted in second quarter 2025 net income of $15.0 million or $0.79 diluted earnings per share, compared to net income of $12.6 million or $0.66 diluted earnings per share for the second quarter 2024. Loan growth gained momentum during the quarter, with total average loans increasing $115.6 million or 2.3% for the second quarter 2025 over the same period in 2024. This growth signals increasing borrower confidence and supports the Bank’s strategic focus on high quality relationship lending.        

    Overview

    Chairman, President, and CEO, Robert J. McCormick said “Part of our long-term strategy is having the right mix of products available so that we can sell the right thing, to the right customer, at the right time. It is our ability to do this with agility and skill that has produced the standout results announced today. We saw double digit growth in our return metrics year over year, as return on average assets improved 17%, and return on average equity grew 12.5%. Our margin improved 7% year over year, in tandem with a 12% year over year improvement in adjusted efficiency ratio. Our ability to sell home equity products at a time of high market demand for the flexibility they offer has been key to this success. Home equity credit lines are up 18% year over year. Likewise, we strategically grew commercial loans 11% year over year – which we have done without exposure to risky multi-family loans or other industry-specific concentrations. We lowered non-performing loans to total loans by 7% year over year, and booked a second consecutive quarter of net recoveries. These exceptional results in the first half of 2025 provide a foundation for positive momentum moving into 2026.”

    Details

    As the year continues to progress, we are seeing increased opportunities to deploy our resources effectively. Some efforts include loan originations, targeted investments in technology and digital banking infrastructure, and strategic growth in key markets. Average loans were up $115.6 million, or 2.3%, in the second quarter 2025 over the same period in 2024. Average residential loans and HECLs, our primary lending focus, were up $27.9 million, or 0.6%, and $64.7 million, or 17.8%, respectively, in the second quarter 2025 over the same period in 2024. Average commercial loans also increased $25.8 million, or 9.2%, in the second quarter 2025 over the same period in 2024. We believe that this upward trend reflects improving economic confidence among borrowers, strong credit quality, and the Bank’s focus on relationship lending. The sustained growth in the loan portfolio will likely enhance net interest income in the quarters ahead. Average deposits were up $173.4 million, or 3.3%, for the second quarter 2025 over the same period in 2024, primarily as a result of an increase in time deposits, interest bearing checking accounts, and demand deposits. The Bank’s continued emphasis on relationship banking, combined with competitive product offerings and digital capabilities, has contributed to a stable deposit base that supports ongoing loan growth and expansion.

    During the second quarter of 2025, we remained committed to returning value to shareholders through a disciplined share repurchase program, which reflects our confidence in the long-term strength of the franchise and our focus on capital optimization. TrustCo purchased 169 thousand, or 0.9%, of total shares outstanding of TrustCo common stock under the previously announced stock repurchase program during the second quarter of 2025. Our approach ensures every dollar of capital is working to generate solid returns, strengthen customer relationships, and enhance shareholder value. As of June 30, 2025, our equity to asset ratio was 10.91%, compared to 10.73% as of June 30, 2024. Book value per share as of June 30, 2025 was $36.75, up 6.6% compared to $34.46 a year earlier.

    Net interest income was $41.7 million for the second quarter 2025, an increase of $4.0 million, or 10.5%, compared to the second quarter of 2024, driven by loan growth at higher interest rates, increase in interest on federal funds sold and other short-term investments, and less interest expense on deposit products, partially offset by lower investment interest income. The net interest margin for the second quarter 2025 was 2.71%, up 18 basis points from 2.53% in the second quarter of 2024. The yield on interest earnings assets increased to 4.19% in the second quarter of 2025, up 13 basis points from 4.06% in the second quarter of 2024. The cost of interest bearing liabilities decreased to 1.91% in the second quarter 2025, down from 1.97% in the second quarter 2024. The Bank is well positioned to continue delivering strong net interest income performance even as the Federal Reserve signals a potential easing cycle in the months ahead. Our balance sheet is built for resilience and flexibility, with a favorable asset mix and a stable deposit base that we believe positions us to thrive across interest rate environments. In addition to new loan originations, we are seeing ongoing opportunities to reprice portions of our existing loan book as higher-rate loans replace paydowns and early payoffs, helping us maintain attractive yields. With loan demand accelerating and funding costs stabilizing, we believe there is meaningful upside to net interest income in the coming quarters. Our proactive asset-liability management strategy gives us confidence in sustaining margin strength and driving consistent profitable growth.

    Non-interest income, net of net gains on equity securities, increased to $4.9 million as compared to $4.3 million for the second quarter of 2024. This increase was primarily attributable to wealth management and financial services fees, which increased by 13.0% to $1.8 million, driven by strong client demand and higher assets under management. These revenues represent 37.5% of non-interest income for the second quarter of 2025. The majority of this fee income is recurring, supported by long-term advisory relationships and a growing base of managed assets. Non-interest expense increased $236 thousand over the second quarter of 2024.

    Asset quality remains strong and has been consistent over the past twelve months. The Company recorded a provision for credit losses on loans of $650 thousand in the second quarter of 2025. The ratio of allowance for credit losses on loans to total loans was 0.99% as of both June 30, 2025 and 2024. The allowance for credit losses on loans was $51.3 million as of June 30, 2025, compared to $49.8 million as of June 30, 2024. Nonperforming loans (NPLs) were $17.9 million as of June 30, 2025, compared to $19.2 million as of June 30, 2024. NPLs were 0.35% and 0.38% of total loans as of June 30, 2025 and 2024, respectively. The coverage ratio, or allowance for credit losses on loans to NPLs, was 286.2% as of June 30, 2025, compared to 259.4% as of June 30, 2024. Nonperforming assets (NPAs) were $19.0 million as of June 30, 2025, compared to $21.5 million as of June 30, 2024.  

    A conference call to discuss second quarter 2025 results will be held at 9:00 a.m. Eastern Time on July 22, 2025. Those wishing to participate in the call may dial toll-free for the United States at 1-833-470-1428, and for Canada at 1-833-950-0062, Access code 258501. A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, Access code 410483.   The call will also be audio webcast at  https://events.q4inc.com/attendee/979003710, and will be available for one year.

    About TrustCo Bank Corp NY

    TrustCo Bank Corp NY is a $6.3 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 136 offices in New York, New Jersey, Vermont, Massachusetts, and Florida as of June 30, 2025.

    In addition, the Bank’s Wealth Management Department offers a full range of investment services, retirement planning and trust and estate administration services. The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST.

    Forward-Looking Statements

    All statements in this news release and the related earnings call that are not historical are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our future performance, including our expectations regarding the impact of our loan portfolio’s growth, loan demand and funding cost on net interest income, and the anticipated effects of our capital management strategy, including our stock repurchase program. Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Such forward-looking statements are subject to factors and uncertainties that could cause actual results to differ materially for TrustCo from the views, beliefs and projections expressed in such statements, and many of the risks and uncertainties are heightened by or may, in the future, be heightened by volatility in financial markets and macroeconomic or geopolitical concerns related to inflation, changes in United States and foreign trade policy, continued elevated interest rates and ongoing armed conflicts (including the Russia/Ukraine conflict and the conflict in Israel and surrounding areas). TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo’s actual results and could cause TrustCo’s actual financial performance to differ materially from that expressed in any forward-looking statement: future changes in interest rates; external economic factors, such as changes in monetary policy, ongoing inflationary pressures and continued elevated prices; exposure to credit risk in our lending activities; the risk of weakness in residential real estate markets; our increasing commercial loan portfolio; the sufficiency of our allowance for credit losses on loans to cover actual loan losses; our ability to meet the cash flow requirements of our depositors or borrowers or meet our operating cash needs to fund corporate expansion and other activities; claims and litigation pertaining to fiduciary responsibility and lender liability; the enforcement of federal cannabis laws and regulations and its impact on our ability to provide services in the cannabis industry; our dependency upon the services of the management team; our disclosure controls and procedures’ ability to prevent or detect errors or acts of fraud; the adequacy of our business continuity and disaster recovery plans; the effectiveness of our risk management framework; the impact of any expansion by us into new lines of business or new products and services; an increase in the prevalence of fraud and other financial crimes; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; environmental, social and governance risks, as well as diversity, equity, and inclusion-related risks, and their impact on our reputation and relationships; the chance of a prolonged economic downturn, especially one affecting our geographic market area; instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the soundness of other financial institutions; U.S. government shutdowns, credit rating downgrades, or failure to increase the debt ceiling; fluctuations in the trust wealth management fees we receive as a result of investment performance; the impact of regulatory capital rules on our growth; changes in laws and regulations, including changes in cybersecurity or privacy regulations; restrictions on data collection and use; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in material fines or sanctions; changes in tax laws; limitations on our ability to pay dividends; TrustCo Realty Corp.’s ability to qualify as a real estate investment trust; changes in accounting standards; competition within our market areas; consumers and businesses’ use of non-banks to complete financial transactions; our reliance on third-party service providers; the impact of data breaches and cyber-attacks; the development and use of artificial intelligence; the impact of a failure in or breach of our operational or security systems or infrastructure, or those of third parties; the impact of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of interruptions in the effective operation of our computer systems; the impact of anti-takeover provisions in our organizational documents; the impact of the manner in which we allocate capital; and other risks and uncertainties set forth in our public filings made with the Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K for the year ended December 31, 2024, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, and our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025 to be filed with the SEC. The forward-looking statements contained in this news release represent TrustCo management’s judgment as of the date of this news release. TrustCo disclaims, however, any intent or obligation to update forward-looking statements, either as a result of future developments, new information or otherwise, except as may be required by law.

    TRUSTCO BANK CORP NY
    GLENVILLE, NY
     
    FINANCIAL HIGHLIGHTS
     
    (dollars in thousands, except per share data)
    (Unaudited)
      Three months ended
      6/30/2025
    		   3/31/2025
    		   6/30/2024
    Summary of operations          
    Net interest income $ 41,746     $ 40,373     $ 37,788  
    Provision for credit losses   650       300       500  
    Net gains on equity securities   –       –       1,360  
    Noninterest income, excluding net gains on equity securities   4,852       4,974       4,291  
    Noninterest expense   26,223       26,329       26,459  
    Net income   15,039       14,275       12,551  
               
    Per share          
    Net income per share:          
    – Basic $ 0.79     $ 0.75     $ 0.66  
    – Diluted   0.79       0.75       0.66  
    Cash dividends   0.36       0.36       0.36  
    Book value at period end   36.75       36.16       34.46  
    Market price at period end   33.42       30.48       28.77  
               
    At period end          
    Full time equivalent employees   733       740       753  
    Full service banking offices   136       136       138  
               
    Performance ratios          
    Return on average assets   0.96 %     0.93 %     0.82 %
    Return on average equity   8.73       8.49       7.76  
    Efficiency ratio (GAAP)   56.27       58.06       60.91  
    Adjusted Efficiency ratio (1)   55.15       58.00       62.84  
    Net interest spread   2.28       2.21       2.09  
    Net interest margin   2.71       2.64       2.53  
    Dividend payout ratio   45.27       47.97       54.57  
               
    Capital ratios at period end          
    Consolidated equity to assets   10.91 %     10.85 %     10.73 %
    Consolidated tangible equity to tangible assets (1)   10.91 %     10.84 %     10.72 %
               
    Asset quality analysis at period end          
    Nonperforming loans to total loans   0.35 %     0.37 %     0.38 %
    Nonperforming assets to total assets   0.30       0.33       0.35  
    Allowance for credit losses on loans to total loans   0.99       0.99       0.99  
    Coverage ratio (2)   2.9x       2.7x       2.6x  
               
               
    (1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.
    (2) Calculated as allowance for credit losses on loans divided by total nonperforming loans.          
    FINANCIAL HIGHLIGHTS, Continued      
     
    (dollars in thousands, except per share data)      
    (Unaudited)      
      Six Months Ended
      06/30/25
    		   06/30/24
    Summary of operations      
    Net interest income $ 82,119       74,366  
    Provision for credit losses   950       1,100  
    Net gains on equity securities   –       1,360  
    Noninterest income, excluding net gains on equity securities   9,826       9,134  
    Noninterest expense   52,552       51,362  
    Net income   29,314       24,677  
           
    Per share      
    Net income per share:      
    – Basic $ 1.54       1.30  
    – Diluted   1.54       1.30  
    Cash dividends   0.72       0.72  
    Book value at period end   36.75       34.46  
    Market price at period end   33.42       28.77  
           
    Performance ratios      
    Return on average assets   0.94 %     0.81  
    Return on average equity   8.61       7.65  
    Efficiency ratio (GAAP)   57.16       60.53  
    Adjusted Efficiency ratio (1)   56.56       61.40  
    Net interest spread   2.24       2.05  
    Net interest margin   2.68       2.48  
    Dividend payout ratio   46.58       55.51  
           
    (1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.      
    CONSOLIDATED STATEMENTS OF INCOME
                       
    (dollars in thousands, except per share data)                  
    (Unaudited)                  
      Three months ended
      6/30/2025   3/31/2025   12/31/2024   9/30/2024     6/30/2024  
    Interest and dividend income:                  
    Interest and fees on loans $ 54,557     $ 53,450     $ 53,024     $ 52,112     $ 50,660  
    Interest and dividends on securities available for sale:                  
    U. S. government sponsored enterprises   614       596       680       718       909  
    State and political subdivisions   –       –       –       –       1  
    Mortgage-backed securities and collateralized mortgage                  
    obligations – residential   1,613       1,483       1,418       1,397       1,451  
    Corporate bonds   210       260       358       361       362  
    Small Business Administration – guaranteed                  
    participation securities   75       81       84       90       94  
    Other securities   8       7       6       2       2  
    Total interest and dividends on securities available for sale   2,520       2,427       2,546       2,568       2,819  
                       
    Interest on held to maturity securities:                  
    obligations – residential   54       57       59       62       65  
    Total interest on held to maturity securities   54       57       59       62       65  
                       
    Federal Home Loan Bank stock   129       151       152       153       147  
                       
    Interest on federal funds sold and other short-term investments   7,212       6,732       6,128       6,174       6,894  
    Total interest income   64,472       62,817       61,909       61,069       60,585  
                       
    Interest expense:                  
    Interest on deposits:                  
    Interest-bearing checking   536       558       397       311       288  
    Savings   733       734       719       770       675  
    Money market deposit accounts   2,086       1,989       2,024       2,154       2,228  
    Time deposits   19,195       18,983       19,680       18,969       19,400  
    Interest on short-term borrowings   176       180       187       194       206  
    Total interest expense   22,726       22,444       23,007       22,398       22,797  
                       
    Net interest income   41,746       40,373       38,902       38,671       37,788  
                       
    Less: Provision for credit losses   650       300       400       500       500  
    Net interest income after provision for credit losses   41,096       40,073       38,502       38,171       37,288  
                       
    Noninterest income:                  
    Trustco Financial Services income   1,818       2,120       1,778       2,044       1,609  
    Fees for services to customers   2,266       2,645       2,226       2,482       2,399  
    Net gains on equity securities   –       –       –       23       1,360  
    Other   768       209       405       382       283  
    Total noninterest income   4,852       4,974       4,409       4,931       5,651  
                       
    Noninterest expenses:                  
    Salaries and employee benefits   11,876       11,894       12,068       12,134       12,520  
    Net occupancy expense   4,518       4,554       4,563       4,271       4,375  
    Equipment expense   1,918       1,944       2,404       1,757       1,990  
    Professional services   1,886       1,726       1,782       1,863       1,570  
    Outsourced services   2,460       2,700       3,051       2,551       2,755  
    Advertising expense   304       361       590       339       466  
    FDIC and other insurance   1,136       1,188       1,113       1,112       797  
    Other real estate expense, net   522       28       476       204       16  
    Other   1,603       1,934       2,118       1,969       1,970  
    Total noninterest expenses   26,223       26,329       28,165       26,200       26,459  
                       
    Income before taxes   19,725       18,718       14,746       16,902       16,480  
    Income taxes   4,686       4,443       3,465       4,027       3,929  
                       
    Net income $ 15,039     $ 14,275     $ 11,281     $ 12,875     $ 12,551  
                       
    Net income per common share:                  
    – Basic $ 0.79     $ 0.75     $ 0.59     $ 0.68     $ 0.66  
                       
    – Diluted   0.79       0.75       0.59       0.68       0.66  
                       
    Average basic shares (in thousands)   18,965       19,020       19,015       19,010       19,022  
    Average diluted shares (in thousands)   18,994       19,044       19,045       19,036       19,033  
    CONSOLIDATED STATEMENTS OF INCOME, Continued
     
    (dollars in thousands, except per share data)
    (Unaudited)
      Six Months Ended
      06/30/25   06/30/24
    Interest and dividend income:      
    Interest and fees on loans $ 108,007       100,464  
    Interest and dividends on securities available for sale:      
    U. S. government sponsored enterprises   1,210       1,815  
    State and political subdivisions   –       1  
    Mortgage-backed securities and collateralized mortgage      
    obligations – residential   3,096       2,945  
    Corporate bonds   470       838  
    Small Business Administration – guaranteed      
    participation securities   156       194  
    Other securities   15       5  
    Total interest and dividends on securities available for sale   4,947       5,798  
           
    Interest on held to maturity securities:      
    Mortgage-backed securities-residential   111       133  
    Total interest on held to maturity securities   111       133  
           
    Federal Home Loan Bank stock   280       299  
           
    Interest on federal funds sold and other short-term investments   13,944       13,644  
    Total interest income   127,289       120,338  
           
    Interest expense:      
    Interest on deposits:      
    Interest-bearing checking   1,094       528  
    Savings   1,467       1,387  
    Money market deposit accounts   4,075       4,570  
    Time deposits   38,178       39,077  
    Interest on short-term borrowings   356       410  
    Total interest expense   45,170       45,972  
           
    Net interest income   82,119       74,366  
           
    Less: Provision for credit losses   950       1,100  
    Net interest income after provision for credit losses   81,169       73,266  
           
    Noninterest income:      
    Trustco Financial Services income   3,938       3,425  
    Fees for services to customers   4,911       5,144  
    Net gains on equity securities   –       1,360  
    Other   977       565  
    Total noninterest income   9,826       10,494  
           
    Noninterest expenses:      
    Salaries and employee benefits   23,770       23,947  
    Net occupancy expense   9,072       8,986  
    Equipment expense   3,862       3,728  
    Professional services   3,612       3,030  
    Outsourced services   5,160       5,256  
    Advertising expense   665       874  
    FDIC and other insurance   2,324       1,891  
    Other real estate expense, net   550       90  
    Other   3,537       3,560  
    Total noninterest expenses   52,552       51,362  
           
    Income before taxes   38,443       32,398  
    Income taxes   9,129       7,721  
           
    Net income $ 29,314       24,677  
           
    Net income per common share:      
    – Basic $ 1.54       1.30  
           
    – Diluted   1.54       1.30  
           
    Average basic shares (in thousands)   18,992       19,023  
    Average diluted shares (in thousands)   19,019       19,033  
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
     
    (dollars in thousands)
    (Unaudited)
      6/30/2025
    		   3/31/2025
    		   12/31/2024
    		   9/30/2024
    		   6/30/2024
    ASSETS:                  
                       
    Cash and due from banks $ 45,218     $ 48,782     $ 47,364     $ 49,659     $ 42,193  
    Federal funds sold and other short term investments   668,373       707,355       594,448       473,306       493,920  
    Total cash and cash equivalents   713,591       756,137       641,812       522,965       536,113  
                       
    Securities available for sale:                  
    U. S. government sponsored enterprises   71,241       65,942       85,617       90,588       106,796  
    States and political subdivisions   18       18       18       26       26  
    Mortgage-backed securities and collateralized mortgage                  
    obligations – residential   221,721       219,333       213,128       222,841       218,311  
    Small Business Administration – guaranteed                  
    participation securities   12,945       13,683       14,141       15,171       15,592  
    Corporate bonds   29,943       24,779       44,581       54,327       53,764  
    Other securities   698       698       700       701       688  
    Total securities available for sale   336,566       324,453       358,185       383,654       395,177  
                       
    Held to maturity securities:                  
    Mortgage-backed securities and collateralized mortgage                  
    obligations-residential   4,836       5,090       5,365       5,636       5,921  
    Total held to maturity securities   4,836       5,090       5,365       5,636       5,921  
                       
    Federal Reserve Bank and Federal Home Loan Bank stock   6,601       6,507       6,507       6,507       6,507  
                       
    Loans:                  
    Commercial   314,273       302,753       286,857       280,261       282,441  
    Residential mortgage loans   4,394,317       4,380,561       4,388,302       4,382,674       4,370,640  
    Home equity line of credit   435,433       419,806       409,261       393,418       370,063  
    Installment loans   12,678       13,017       13,638       14,503       15,168  
    Loans, net of deferred net costs   5,156,701       5,116,137       5,098,058       5,070,856       5,038,312  
                       
    Less: Allowance for credit losses on loans   51,265       50,606       50,248       49,950       49,772  
    Net loans   5,105,436       5,065,531       5,047,810       5,020,906       4,988,540  
                       
    Bank premises and equipment, net   38,129       37,178       33,782       33,324       33,466  
    Operating lease right-of-use assets   36,322       34,968       36,627       37,958       38,376  
    Other assets   106,894       108,681       108,656       98,730       102,544  
                       
    Total assets $ 6,348,375     $ 6,338,545     $ 6,238,744 $ 6,109,680     $ 6,106,644  
                       
    LIABILITIES:                  
    Deposits:                  
    Demand $ 784,351     $ 793,306     $ 762,101     $ 753,878     $ 745,227  
    Interest-bearing checking   1,045,043       1,067,948       1,027,540       988,527       1,029,606  
    Savings accounts   1,082,489       1,094,968       1,086,534       1,092,038       1,144,427  
    Money market deposit accounts   467,087       478,872       465,049       477,113       517,445  
    Time deposits   2,111,344       2,061,576       2,049,759       1,952,635       1,840,262  
    Total deposits   5,490,314       5,496,670       5,390,983       5,264,191       5,276,967  
                       
    Short-term borrowings   82,370       82,275       84,781       91,450       89,720  
    Operating lease liabilities   39,350       38,324       40,159       41,469       42,026  
    Accrued expenses and other liabilities   43,536       33,468       46,478       43,549       42,763  
                       
    Total liabilities   5,655,570       5,650,737       5,562,401       5,440,659       5,451,476  
                       
    SHAREHOLDERS’ EQUITY:                  
    Capital stock   20,097       20,097       20,097       20,058       20,058  
    Surplus   259,490       259,182       258,874       257,644       257,490  
    Undivided profits   462,158       453,931       446,503       442,079       436,048  
    Accumulated other comprehensive income (loss), net of tax   1,663       (132 )     (3,861 )     (6,600 )     (14,268 )
    Treasury stock at cost   (50,603 )     (45,270 )     (45,270 )     (44,160 )     (44,160 )
                       
    Total shareholders’ equity   692,805       687,808       676,343       669,021       655,168  
                       
    Total liabilities and shareholders’ equity $ 6,348,375     $ 6,338,545     $ 6,238,744 $ 6,109,680     $ 6,106,644  
                       
    Outstanding shares (in thousands)   18,851       19,020       19,020       19,010       19,010  
    NONPERFORMING ASSETS
               
    (dollars in thousands)
    (Unaudited)
      6/30/2025
    		   3/31/2025
    		   12/31/2024
    		   9/30/2024
    		   6/30/2024
    Nonperforming Assets                                      
                                           
    New York and other states*                                      
    Loans in nonaccrual status:                                      
    Commercial $ 684     $ 688     $ 343     $ 466     $ 741  
    Real estate mortgage – 1 to 4 family   14,048       14,795       14,671       15,320       14,992  
    Installment   34       139       108       163       131  
    Total nonperforming loans   14,766       15,622       15,122       15,949       15,864  
    Other real estate owned   1,136       2,107       2,175       2,503       2,334  
    Total nonperforming assets $ 15,902     $ 17,729     $ 17,297     $ 18,452     $ 18,198  
               
    Florida          
    Loans in nonaccrual status:          
    Commercial $ –     $ –     $ –     $ 314     $ 314  
    Real estate mortgage – 1 to 4 family   3,132       3,135       3,656       3,176       2,985  
    Installment   12       3       22       5       22  
    Total nonperforming loans   3,144       3,138       3,678       3,495       3,321  
    Other real estate owned   –       –       –       –       –  
    Total nonperforming assets $ 3,144     $ 3,138     $ 3,678     $ 3,495     $ 3,321  
               
    Total          
    Loans in nonaccrual status:          
    Commercial $ 684     $ 688     $ 343     $ 780     $ 1,055  
    Real estate mortgage – 1 to 4 family   17,180       17,930       18,327       18,496       17,977  
    Installment   46       142       130       168       153  
    Total nonperforming loans   17,910       18,760       18,800       19,444       19,185  
    Other real estate owned   1,136       2,107       2,175       2,503       2,334  
    Total nonperforming assets $ 19,046     $ 20,867     $ 20,975     $ 21,947     $ 21,519  
               
               
    Quarterly Net (Recoveries) Chargeoffs          
               
    New York and other states*          
    Commercial $ –     $ (3 )   $ 62     $ 65     $ –  
    Real estate mortgage – 1 to 4 family   (121 )     41       (316 )     104       (74 )
    Installment   18       4       41       11       (2 )
    Total net chargeoffs (recoveries) $ (103 )   $ 42     $ (213 )   $ 180     $ (76 )
               
    Florida          
    Commercial $ –     $ (315 )   $ 314     $ –     $ –  
    Real estate mortgage – 1 to 4 family   –       –       –       –       17  
    Installment   94       15       1       42       7  
    Total net (recoveries) chargeoffs $ 94     $ (300 )   $ 315     $ 42     $ 24  
               
    Total          
    Commercial $ –     $ (318 )   $ 376     $ 65     $ –  
    Real estate mortgage – 1 to 4 family   (121 )     41       (316 )     104       (57 )
    Installment   112       19       42       53       5  
    Total net (recoveries) chargeoffs $ (9 )   $ (258 )   $ 102     $ 222     $ (52 )
               
               
    Asset Quality Ratios          
               
    Total nonperforming loans (1) $ 17,910     $ 18,760     $ 18,800     $ 19,444     $ 19,185  
    Total nonperforming assets (1)   19,046       20,867       20,975       21,947       21,519  
    Total net (recoveries) chargeoffs (2)   (9 )     (258 )     102       222       (52 )
               
    Allowance for credit losses on loans (1)   51,265       50,606       50,248       49,950       49,772  
               
    Nonperforming loans to total loans   0.35 %     0.37 %     0.37 %     0.38 %     0.38 %
    Nonperforming assets to total assets   0.30 %     0.33 %     0.34 %     0.36 %     0.35 %
    Allowance for credit losses on loans to total loans   0.99 %     0.99 %     0.99 %     0.99 %     0.99 %
    Coverage ratio (1)   286.2 %     269.8 %     267.3 %     256.9 %     259.4 %
    Annualized net (recoveries) chargeoffs to average loans (2)   0.00 %     -0.02 %     0.01 %     0.02 %     0.00 %
    Allowance for credit losses on loans to annualized net chargeoffs (2) N/A N/A 123.2x 56.3x N/A
     
    * Includes New York, New Jersey, Vermont and Massachusetts.
    (1) At period-end
    (2) For the three-month period ended
    DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY –
    INTEREST RATES AND INTEREST DIFFERENTIAL
     
    (dollars in thousands)                              
    (Unaudited) Three months ended   Three months ended
      June 30, 2025   June 30, 2024
      Average   Interest     Average     Average   Interest     Average  
      Balance         Rate     Balance         Rate  
    Assets                              
                                   
    Securities available for sale:                              
    U. S. government sponsored enterprises $ 73,468     $ 614       3.34 %   $ 113,844     $ 909       3.20 %  
    Mortgage backed securities and collateralized mortgage                              
    obligations – residential   244,628       1,613       2.62       250,517       1,451       2.30  
    State and political subdivisions   18       0       6.77       26       1       6.75  
    Corporate bonds   25,707       210       3.26       55,065       362       2.63  
    Small Business Administration – guaranteed                              
    participation securities   14,083       75       2.14       17,436       94       2.15  
    Other   697       8       4.59       694       2       1.15  
                                   
    Total securities available for sale   358,601       2,520       2.81       437,582       2,819       2.58  
                                   
    Federal funds sold and other short-term Investments   648,457       7,212       4.46       506,493       6,894       5.48  
                                   
    Held to maturity securities:                              
    Mortgage backed securities and collateralized mortgage                              
    obligations – residential   4,970       54       4.37       6,054       65       4.28  
                                   
    Total held to maturity securities   4,970       54       4.37       6,054       65       4.28  
                                   
    Federal Home Loan Bank stock   6,591       129       7.83       6,340       147       9.27  
                                   
    Commercial loans   306,373       4,261       5.56       280,559       3,765       5.37  
    Residential mortgage loans   4,387,181       43,236       3.94       4,359,232       40,819       3.75  
    Home equity lines of credit   428,933       6,830       6.39       364,210       5,814       6.42  
    Installment loans   12,523       230       7.35       15,395       262       6.86  
                                   
    Loans, net of unearned income   5,135,010       54,557       4.25       5,019,396       50,660       4.04  
                                   
    Total interest earning assets   6,153,629     $ 64,472       4.19       5,975,865     $ 60,585       4.06  
                                   
    Allowance for credit losses on loans   (50,777 )                 (49,454 )            
    Cash & non-interest earning assets   204,006                   181,688              
                                   
                                   
    Total assets $ 6,306,858                 $ 6,108,099              
                                   
                                   
    Liabilities and shareholders’ equity                              
                                   
    Deposits:                              
    Interest bearing checking accounts $ 1,039,242     $ 536       0.21 %   $ 1,009,048     $ 288       0.11 %  
    Money market accounts   470,824       2,086       1.78       524,068       2,228       1.71  
    Savings   1,087,467       733       0.27       1,145,922       675       0.24  
    Time deposits   2,085,329       19,195       3.69       1,873,139       19,400       4.17  
                                   
    Total interest bearing deposits   4,682,862       22,550       1.93       4,552,177       22,591       2.00  
    Short-term borrowings   81,055       176       0.87       93,703       206       0.89  
                                   
    Total interest bearing liabilities   4,763,917     $ 22,726       1.91       4,645,880     $ 22,797       1.97  
                                   
    Demand deposits   777,956                   735,262              
    Other liabilities   73,903                   76,258              
    Shareholders’ equity   691,082                   650,699              
                                   
    Total liabilities and shareholders’ equity $ 6,306,858                 $ 6,108,099              
                                   
    Net interest income     $ 41,746                 $ 37,788          
                                   
    Net interest spread           2.28 %             2.09 %  
                                   
                                   
    Net interest margin (net interest income to                              
    total interest earning assets)           2.71 %             2.53 %  
    DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY –
    INTEREST RATES AND INTEREST DIFFERENTIAL, Continued
                                     
    (dollars in thousands)                                
    (Unaudited) Six Months Ended     Six Months Ended  
      June 30, 2025     June 30, 2024  
      Average   Interest       Average     Average   Interest     Average  
      Balance           Rate     Balance         Rate  
    Assets                                
                                     
    Securities available for sale:                                
    U. S. government sponsored enterprises $ 74,071       1,210       3.27 %   $ 119,908       1,815       3.03 %
    Mortgage backed securities and collateralized mortgage                                
    obligations – residential   242,083       3,096       2.56       254,665       2,945       2.31  
    State and political subdivisions   18       –       6.77       26       1       6.82  
    Corporate bonds   32,823       470       2.86       64,345       838       2.60  
    Small Business Administration – guaranteed                                
    participation securities   14,540       156       2.15       17,830       194       2.18  
    Mortgage backed securities and collateralized mortgage                                
    obligations – commercial   –                     –       –       –  
    Other   698       15       4.30       695       5       1.44  
                                     
    Total securities available for sale   364,233       4,947       2.72       457,469       5,798       2.53  
                                     
    Federal funds sold and other short-term Investments   631,148       13,944       4.46       502,072       13,644       5.47  
                                     
    Held to maturity securities:                                
    Mortgage backed securities and collateralized mortgage                                
    obligations – residential   5,101       111       4.35       6,192       133       4.29  
                                     
    Total held to maturity securities   5,101       111       4.35       6,192       133       4.29  
                                     
    Federal Home Loan Bank stock   6,549       280       8.55       6,271       299       9.54  
                                     
    Commercial loans   302,173       8,426       5.58       278,871       7,425       5.33  
    Residential mortgage loans   4,386,418       85,851       3.92       4,359,351       81,236       3.73  
    Home equity lines of credit   421,498       13,265       6.35       358,607       11,277       6.32  
    Installment loans   12,744       465       7.36       15,761       526       6.72  
                                     
    Loans, net of unearned income   5,122,833       108,007       4.22       5,012,590       100,464       4.01  
                                     
    Total interest earning assets   6,129,864       127,289       4.16       5,984,594       120,338       4.03  
                                     
    Allowance for credit losses on loans   (50,627 )                   (49,139 )            
    Cash & non-interest earning assets   202,590                     188,364              
                                     
                                     
    Total assets $ 6,281,827                   $ 6,123,819              
                                     
                                     
    Liabilities and shareholders’ equity                                
                                     
    Deposits:                                
    Interest bearing checking accounts $ 1,038,733       1,094       0.21 %   $ 999,589       528       0.11 %
    Money market accounts   469,952       4,075       1.75       534,378       4,570       1.72  
    Savings   1,088,408       1,467       0.27       1,152,241       1,387       0.24  
    Time deposits   2,069,998       38,178       3.72       1,881,535       39,077       4.18  
                                     
    Total interest bearing deposits   4,667,091       44,814       1.94       4,567,743       45,562       2.01  
    Short-term borrowings   82,125       356       0.87       93,510       410       0.88  
                                     
    Total interest bearing liabilities   4,749,216       45,170       1.92       4,661,253       45,972       1.98  
                                     
    Demand deposits   769,923                     730,781              
    Other liabilities   76,308                     83,105              
    Shareholders’ equity   686,380                     648,680              
                                     
    Total liabilities and shareholders’ equity $ 6,281,827                   $ 6,123,819              
                                     
    Net interest income       82,119                   74,366          
                                     
    Net interest spread             2.24 %             2.05 %
                                     
                                     
    Net interest margin (net interest income to                                
    total interest earning assets)             2.68 %             2.48 %

    Non-GAAP Financial Measures Reconciliation

    Tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value by excluding the balance of intangible assets from total shareholders’ equity divided by shares outstanding. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity exclusive of changes in intangible assets.

    Tangible equity as a percentage of tangible assets at period end is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from total shareholders’ equity and total assets, respectively. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.

    Adjusted efficiency ratio is a non-GAAP measures of expense control relative to revenue from net interest income and non-interest fee income. We calculate the efficiency ratio by dividing total non-interest expense by the sum of net interest income and total non-interest income. We calculate the adjusted efficiency ratio by dividing total noninterest expenses as determined under GAAP, excluding other real estate expense, net, by net interest income and total noninterest income as determined under GAAP, excluding net gains on equity securities. We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue. Additionally, we believe this measure is important to investors looking for a measure of efficiency in our productivity measured by the amount of revenue generated for each dollar spent.

    We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial results. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible book value to shares outstanding, tangible equity as a percentage of tangible assets, and efficiency ratio to the most directly comparable GAAP measures is set forth below.  

    NON-GAAP FINANCIAL MEASURES RECONCILIATION              
                   
    (dollars in thousands)              
    (Unaudited)              
        6/30/2025   3/31/2025   6/30/2024      
    Tangible Book Value Per Share              
                   
    Equity (GAAP)   $ 692,805     $ 687,808     $ 655,168        
    Less: Intangible assets     553       553       553        
    Tangible equity (Non-GAAP)   $ 692,252     $ 687,255     $ 654,615        
                   
    Shares outstanding     18,851       19,020       19,010        
    Tangible book value per share     36.72       36.13       34.44        
    Book value per share     36.75       36.16       34.46        
                   
    Tangible Equity to Tangible Assets              
    Total Assets (GAAP)   $ 6,348,375     $ 6,338,545     $ 6,106,644        
    Less: Intangible assets     553       553       553        
    Tangible assets (Non-GAAP)   $ 6,347,822     $ 6,337,992     $ 6,106,091        
                   
    Consolidated Equity to Assets (GAAP)     10.91 %     10.85 %     10.73 %      
    Consolidated Tangible Equity to Tangible Assets (Non-GAAP)     10.91 %     10.84 %     10.72 %      
                   
        Three months ended   Six Months Ended
    Efficiency and Adjusted Efficiency Ratios   6/30/2025 3/31/2025 6/30/2024   6/30/2025     6/30/2024  
    Net interest income (GAAP) A $ 41,746     $ 40,373     $ 37,788     $ 82,119     $ 74,366  
    Non-interest income (GAAP) B   4,852       4,974       5,651       9,826       10,494  
    Less: Net gains on equity securities     –       –       1,360       –       1,360  
    Revenue used for efficiency ratio (Non-GAAP) C $ 46,598     $ 45,347     $ 42,079     $ 91,945     $ 83,500  
                   
    Total noninterest expense (GAAP) D $ 26,223     $ 26,329     $ 26,459     $ 52,552     $ 51,362  
    Less: Other real estate expense, net E   522       28       16       550       90  
    Expense used for efficiency ratio (Non-GAAP) F $ 25,701     $ 26,301     $ 26,443     $ 52,002     $ 51,272  
                   
    Efficiency Ratio (GAAP) D/(A+B)   56.27 %     58.06 %     60.91 %     57.16 %     60.53 %
    Adjusted Efficiency Ratio (Non-GAAP) F/C   55.15 %     58.00 %     62.84 %     56.56 %     61.40 %

    Subsidiary: Trustco Bank

    Contact: Robert Leonard
      Executive Vice President
      (518) 381-3693

    The MIL Network –

  • MIL-OSI: ServisFirst Bancshares, Inc. Announces Results For Second Quarter of 2025

    Source: GlobeNewswire (MIL-OSI)

    BIRMINGHAM, Ala., July 21, 2025 (GLOBE NEWSWIRE) — ServisFirst Bancshares, Inc. (NYSE: SFBS), today announced earnings and operating results for the quarter ended June 30, 2025.

    Second Quarter 2025 Highlights:

    • Diluted earnings per share of $1.12 for the quarter. Adjusted diluted earnings per share of $1.21, up 27% from the second quarter of 2024.
    • Net interest margin improved to 3.10% in the second quarter from 2.92% in the first quarter. Adjusted net interest margin was 3.06% in the second quarter.
    • Loans grew by $346 million, or 11% annualized, during the quarter.
    • Book value per share of $31.52, up 14% from the second quarter of 2024 and 16% annualized, from the first quarter of 2025.
    • Liquidity remains strong with $1.7 billion in cash and cash equivalent assets, 10% of our total assets, and no FHLB advances or brokered deposits.
    • Consolidated common equity tier 1 capital to risk-weighted assets increased from 10.93% to 11.38% year-over-year.
    • Return on average common stockholder’s equity of 14.56%. Adjusted return on average common stockholders’ equity increased from 14.08% to 15.63% year-over-year.

    Tom Broughton, Chairman, President, and CEO, said, “We were pleased with the loan growth in the quarter, combined with the improved environment for banks like ServisFirst.”

    David Sparacio, CFO, said, “The net interest margin continues to improve and we see continued asset repricing, which we believe will lead to higher net interest margins over the next 24 months”

    * This press release includes certain non-GAAP financial measures: adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted net interest margin, adjusted return on average assets, adjusted return on average common stockholders’ equity, adjusted efficiency ratio, tangible common stockholders’ equity, total tangible assets, tangible book value per share, and tangible common equity to total tangible assets. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.”

    FINANCIAL SUMMARY (UNAUDITED)                                    
    (in Thousands except share and per share amounts)   Period Ending June 30, 2025   Period Ending March 31, 2025   % Change From Period Ending March 31, 2025 to Period Ending June 30, 2025   Period Ending June 30, 2024   % Change From Period Ending June 30, 2024 to Period Ending June 30, 2025
    QUARTERLY OPERATING RESULTS                                    
    Net Income   $ 61,424     $ 63,224     (2.8 )%   $ 52,136     17.8 %
    Net Income Available to Common Stockholders   $ 61,393     $ 63,224     (2.9 )%   $ 52,105     17.8 %
    Diluted Earnings Per Share   $ 1.12     $ 1.16     (3.4 )%   $ 0.95     17.9 %
    Return on Average Assets     1.40 %     1.45 %           1.34 %      
    Return on Average Common Stockholders’ Equity     14.56 %     15.63 %           14.08 %      
    Average Diluted Shares Outstanding     54,664,480       54,656,630             54,608,679        
                                         
    Adjusted Net Income, net of tax*   $ 66,133     $ 63,224     4.6 %   $ 52,136     26.8 %
    Adjusted Net Income Available to Common Stockholders, net of tax*   $ 66,102     $ 63,224     4.6 %   $ 52,105     26.9 %
    Adjusted Diluted Earnings Per Share, net of tax*   $ 1.21     $ 1.16     4.4 %   $ 0.95     27.5 %
    Adjusted Return on Average Assets, net of tax*     1.50 %     1.45 %           1.34 %      
    Adjusted Return on Average Common Stockholders’ Equity, net of tax*     15.68 %     15.63 %           14.08 %      
                                         
                                         
                                         
    YEAR-TO-DATE OPERATING RESULTS                                    
    Net Income   $ 124,648                   $ 102,162     22.0 %
    Net Income Available to Common Stockholders   $ 124,617                   $ 102,131     22.0 %
    Diluted Earnings Per Share   $ 2.28                   $ 1.87     21.9 %
    Return on Average Assets     1.42 %                   1.30 %      
    Return on Average Common Stockholders’ Equity     15.08 %                   13.96 %      
    Average Diluted Shares Outstanding     54,660,577                     54,602,032        
                                         
    Adjusted Net Income, net of tax*   $ 129,357                   $ 103,509     25.0 %
    Adjusted Net Income Available to Common Stockholders, net of tax*   $ 129,326                   $ 103,478     25.0 %
    Adjusted Diluted Earnings Per Share, net of tax*   $ 2.36                   $ 1.89        
    Adjusted Return on Average Assets, net of tax*     1.48 %                   1.31 %      
    Adjusted Return on Average Common Stockholders’ Equity, net of tax*     15.65 %                   14.15 %      
                                         
    BALANCE SHEET                                    
    Total Assets   $ 17,378,628     $ 18,636,766     (6.8 )%   $ 16,049,812     8.3 %
    Loans     13,232,560       12,886,831     2.7 %     12,332,780     7.3 %
    Non-interest-bearing Demand Deposits     2,632,058       2,647,577     (0.6 )%     2,475,415     6.3 %
    Total Deposits     13,862,319       14,429,061     (3.9 )%     13,259,392     4.5 %
    Stockholders’ Equity     1,721,783       1,668,900     3.2 %     1,510,576     14.0 %


    DETAILED FINANCIALS

    ServisFirst Bancshares, Inc. reported net income and net income available to common stockholders of $61.4 million for the quarter ended June 30, 2025, compared to net income and net income available to common stockholders of $63.2 million for the first quarter of 2025 and net income and net income available to common stockholders of $52.1 million for the second quarter of 2024. Basic and diluted earnings per common share were both $1.12 in the second quarter of 2025, compared to $1.16 for both in the first quarter of 2025 and $0.96 and $0.95, respectively, in the second quarter of 2024.

    Annualized return on average assets was 1.40% and annualized return on average common stockholders’ equity was 14.56% for the second quarter of 2025, compared to 1.34% and 14.08%, respectively, for the second quarter of 2024.

    Net interest income was $131.7 million for the second quarter of 2025, compared to $123.6 million for the first quarter of 2025 and $105.9 million for the second quarter of 2024. The net interest margin in the second quarter of 2025 was 3.10% compared to 2.92% in the first quarter of 2025 and 2.79% in the second quarter of 2024. Loan yields were 6.37% during the second quarter of 2025 compared to 6.28% during the first quarter of 2025 and 6.48% during the second quarter of 2024. Investment yields were 3.37% during the second quarter of 2025 compared to 3.31% during the first quarter of 2025 and 3.33% during the second quarter of 2024. Average interest-bearing deposit rates were 3.33% during the second quarter of 2025, compared to 3.40% during the first quarter of 2025 and 4.09% during the second quarter of 2024. During the quarter, we reversed a $2.3 million accrual related to a legal matter, which had been recorded in interest expense. Average federal funds purchased rates were 4.49% during the second quarter of 2025, compared to 4.50% during the first quarter of 2025 and 5.50% during the second quarter of 2024.

    Average loans for the second quarter of 2025 were $13.01 billion, an increase of $302.0 million, or 9.5% annualized, from average loans of $12.71 billion for the first quarter of 2025, and an increase of $947.1 million, or 7.9%, from average loans of $12.06 billion for the second quarter of 2024. Ending total loans for the second quarter of 2025 were $13.23 billion, an increase of $345.7 million, or 10.8% annualized, from $12.89 billion for the first quarter of 2025, and an increase of $899.8 million, or 7.3%, from $12.33 billion for the second quarter of 2024.

    Average total deposits for the second quarter of 2025 were $13.90 billion, an increase of $5.8 million, or 0.2% annualized, from average total deposits of $13.89 billion for the first quarter of 2025, and an increase of $1.03 billion, or 8.0%, from average total deposits of $12.86 billion for the second quarter of 2024. Ending total deposits for the second quarter of 2025 were $13.86 billion, a decrease of $566.7 million, or 15.8% annualized, from $14.43 billion for the first quarter of 2025, and an increase of $602.9 million, or 4.5%, from $13.26 billion for the second quarter of 2024.

    Non-performing assets to total assets were 0.42% for the second quarter of 2025, compared to 0.40% for the first quarter of 2025 and 0.23% for the second quarter of 2024. The majority of the year-over-year increase in non-performing assets was attributable to two relationships, both of which are secured by real estate. Annualized net charge-offs to average loans were 0.20% for the second quarter of 2025, compared to 0.19% for the first quarter of 2025 and 0.10% for the second quarter of 2024. During the second quarter of 2025, we charged off $4.9 million on a loan that had not been previously impaired. The allowance for credit losses as a percentage of total loans at June 30, 2025, March 31, 2025, and June 30, 2024, was 1.28%, 1.28%, and 1.28%, respectively. We recorded a $11.4 million provision for loan losses in the second quarter of 2025 compared to $6.5 million in the first quarter of 2025, and $5.4 million in the second quarter of 2024. Higher loan growth and increased net charge-offs during the second quarter of 2025 contributed to the increase in provision for loan losses.

    Non-interest income decreased $8.5 million, or 95.3%, to $421,000 for the second quarter of 2025 from $8.9 million in the second quarter of 2024, and decreased $7.9 million, or 94.9%, on a linked quarter basis. Service charges on deposit accounts increased $378,000, or 16.5%, to $2.7 million for the second quarter of 2025 from $2.3 million in the second quarter of 2024, and increased $113,000, or 4.4%, on a linked quarter basis. Mortgage banking revenue decreased $56,000, or 4.1%, to $1.3 million for the second quarter of 2025 from $1.4 million in the second quarter of 2024, and increased $710,000, or 115.8%, on a linked quarter basis. Net credit card income decreased $214,000, or 9.2%, to $2.1 million for the second quarter of 2025 from $2.3 million in the second quarter of 2024, and increased $151,000, or 7.7%, on a linked quarter basis. In the second quarter of 2025, we recognized an $8.6 million loss on the sale of available-for-sale debt securities as part of a portfolio restructuring. Bank-owned life insurance (“BOLI”) income increased $68,000, or 3.3%, to $2.1 million for the second quarter of 2025 from $2.1 million in the second quarter of 2024, and decreased $11,000, or 0.5%, on a linked quarter basis. Other operating income decreased $83,000, or 10.0%, to $745,000 for the second quarter of 2025 from $828,000 in the second quarter of 2024, and decreased $256,000, or 25.6%, on a linked quarter basis.

    Non-interest expense increased $1.4 million, or 3.2%, to $44.2 million for the second quarter of 2025 from $42.8 million in the second quarter of 2024, and decreased $1.9 million, or 4.1%, on a linked quarter basis. Salary and benefit expense decreased $1.6 million, or 6.8%, to $22.6 million for the second quarter of 2025 from $24.2 million in the second quarter of 2024, and decreased $303,000, or 1.3%, on a linked quarter basis. The number of full-time equivalent (“FTE”) employees increased by 34, or 5.44%, to 659 at June 30, 2025 compared to 625 at June 30, 2024, and increased by 23, or 3.61%, from the end of the first quarter of 2025. Equipment and occupancy expense decreased $44,000, or 1.2%, to $3.5 million for the second quarter of 2025 from $3.6 million in the second quarter of 2024, and decreased $199,000, or 5.3%, on a linked quarter basis. Third party processing and other services expense increased $540,000, or 7.2%, to $8.0 million for the second quarter of 2025 from $7.5 million in the second quarter of 2024, and increased $267,000, or 3.5%, on a linked quarter basis. Professional services expense increased $163,000, or 9.4%, to $1.9 million for the second quarter of 2025 from $1.7 million in the second quarter of 2024, and decreased $29,000, or 1.5%, on a linked quarter basis. FDIC and other regulatory assessments increased $551,000, or 25.0%, to $2.8 million for the second quarter of 2025 from $2.2 million in the second quarter of 2024, and decreased $101,000, or 3.5%, on a linked quarter basis. Other operating expenses increased $1.8 million, or 49.5%, to $5.4 million for the second quarter of 2025 from $3.6 million in the second quarter of 2024, and decreased $1.5 million, or 22.0%, on a linked quarter basis. The efficiency ratio was 33.46% during the second quarter of 2025 compared to 37.31% during the second quarter of 2024 and 34.97% during the first quarter of 2025. The adjusted efficiency ratio was 31.94% in the second quarter of 2025.

    Income tax expense increased $725,000, or 5.0%, to $15.2 million in the second quarter of 2025, compared to $14.5 million in the second quarter of 2024. Our effective tax rate was 19.82% for the second quarter of 2025 compared to 21.71% for the second quarter of 2024. We recognized a reduction in provision for income taxes resulting from excess tax benefits from the exercise and vesting of stock options and restricted stock during the second quarters of 2025 and 2024 of $2.1 million and $396,000, respectively.

    About ServisFirst Bancshares, Inc.

    ServisFirst Bancshares, Inc. is a bank holding company based in Birmingham, Alabama. Through its subsidiary ServisFirst Bank, ServisFirst Bancshares, Inc. provides business and personal financial services from locations in Alabama, Florida, Georgia, North and South Carolina, Tennessee, and Virginia. We also operate a loan production office in Florida. Through the ServisFirst Bank, we originate commercial, consumer and other loans and accept deposits, provide electronic banking services, such as online and mobile banking, including remote deposit capture, deliver treasury and cash management services and provide correspondent banking services to other financial institutions.

    ServisFirst Bancshares, Inc. files periodic reports with the U.S. Securities and Exchange Commission (SEC). Copies of its filings may be obtained through the SEC’s website at www.sec.gov or at www.servisfirstbancshares.com.

    Statements in this press release that are not historical facts, including, but not limited to, statements concerning future operations, results or performance, are hereby identified as “forward-looking statements” for the purpose of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. The words “believe,” “expect,” “anticipate,” “project,” “plan,” “intend,” “will,” “could,” “would,” “might” and similar expressions often signify forward-looking statements. Such statements involve inherent risks and uncertainties. ServisFirst Bancshares, Inc. cautions that such forward-looking statements, wherever they occur in this press release or in other statements attributable to ServisFirst Bancshares, Inc., are necessarily estimates reflecting the judgment of ServisFirst Bancshares, Inc.’s senior management and involve risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Such forward-looking statements should, therefore, be considered in light of various factors that could affect the accuracy of such forward-looking statements, including, but not limited to: general economic conditions, especially in the credit markets and in the Southeast; the impact of tariffs and trade wars on general economic conditions, the performance of the capital markets; changes in interest rates, yield curves and interest rate spread relationships; changes in accounting and tax principles, policies or guidelines; changes in legislation or regulatory requirements; changes as a result of our reclassification as a large financial institution by the FDIC; changes in our loan portfolio and the deposit base; possible changes in laws and regulations and governmental monetary and fiscal policies, including, but not limited to, the Federal Reserve policies in connection with continued or re-emerging inflationary pressures and the ability of the U.S. Congress to increase the U.S. statutory debt limit as needed; computer hacking or cyber-attacks resulting in unauthorized access to confidential or proprietary information; substantial, unexpected or prolonged changes in the level or cost of liquidity; the cost and other effects of legal and administrative cases and similar contingencies; possible changes in the creditworthiness of customers and the possible impairment of the collectability of loans and the value of collateral; the effect of natural disasters, such as hurricanes and tornados, in our geographic markets; and increased competition from both banks and non-bank financial institutions. For discussion of these and other risks that may cause actual results to differ from expectations, please refer to “Cautionary Note Regarding Forward-looking Statements” and “Risk Factors” in our most recent Annual Report on Form 10-K, in our Quarterly Reports on Form 10-Q for fiscal year 2025, and our other SEC filings. If one or more of the assumptions forming the basis of our forward-looking information and statements proves incorrect, then our actual results, performance or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained herein. Accordingly, you should not place undue reliance on any forward-looking statements, which speak only as of the date made. ServisFirst Bancshares, Inc. assumes no obligation to update or revise any forward-looking statements that are made from time to time.

    More information about ServisFirst Bancshares, Inc. may be obtained over the Internet at www.servisfirstbancshares.com or by calling (205) 949-0302.

    Contact: ServisFirst Bank
    Davis Mange (205) 949-3420
    dmange@servisfirstbank.com

    SELECTED FINANCIAL HIGHLIGHTS (UNAUDITED)                                  
    (In thousands except share and per share data)                                        
        2nd Quarter 2025   1st Quarter 2025   4th Quarter 2024   3rd Quarter 2024   2nd Quarter 2024
    CONSOLIDATED STATEMENT OF INCOME                                        
    Interest income   $ 246,635     $ 241,096     $ 243,892     $ 247,979     $ 227,540  
    Interest expense     114,948       117,543       120,724       132,858       121,665  
    Net interest income     131,687       123,553       123,168       115,121       105,875  
    Provision for credit losses     11,296       6,630       5,704       5,659       5,353  
    Net interest income after provision for credit losses     120,391       116,923       117,464       109,462       100,522  
    Non-interest income     421       8,277       8,803       8,549       8,891  
    Non-interest expense     44,204       46,107       46,896       45,632       42,818  
    Income before income tax     76,608       79,093       79,371       72,379       66,595  
    Provision for income tax     15,184       15,869       14,198       12,472       14,459  
    Net income     61,424       63,224       65,173       59,907       52,136  
    Preferred stock dividends     31       –       31       –       31  
    Net income available to common stockholders   $ 61,393     $ 63,224     $ 65,142     $ 59,907     $ 52,105  
    Earnings per share – basic   $ 1.12     $ 1.16     $ 1.19     $ 1.10     $ 0.96  
    Earnings per share – diluted   $ 1.12     $ 1.16     $ 1.19     $ 1.10     $ 0.95  
    Average diluted shares outstanding     54,664,480       54,656,630       54,649,808       54,642,582       54,608,679  
                                             
    CONSOLIDATED BALANCE SHEET DATA                                        
    Total assets   $ 17,378,628     $ 18,636,766     $ 17,351,643     $ 16,449,178     $ 16,049,812  
    Loans     13,232,560       12,886,831       12,605,836       12,338,226       12,332,780  
    Debt securities     1,914,503       1,905,550       1,876,253       1,867,587       1,941,641  
    Non-interest-bearing demand deposits     2,632,058       2,647,577       2,619,687       2,576,329       2,475,415  
    Total deposits     13,862,319       14,429,061       13,543,459       13,146,529       13,259,392  
    Borrowings     64,747       64,745       64,743       64,741       64,739  
    Stockholders’ equity     1,721,783       1,668,900       1,616,772       1,570,269       1,510,576  
                                             
    Shares outstanding     54,618,545       54,601,217       54,569,427       54,551,543       54,521,479  
    Book value per share   $ 31.52     $ 30.57     $ 29.63     $ 28.79     $ 27.71  
    Tangible book value per share (1)   $ 31.27     $ 30.32     $ 29.38     $ 28.54     $ 27.46  
                                             
    SELECTED FINANCIAL RATIOS (Annualized)                                        
    Net interest margin     3.10 %     2.92 %     2.96 %     2.84 %     2.79 %
    Return on average assets     1.40 %     1.45 %     1.52 %     1.43 %     1.34 %
    Return on average common stockholders’ equity     14.56 %     15.63 %     16.29 %     15.55 %     14.08 %
    Efficiency ratio     33.46 %     34.97 %     35.54 %     36.90 %     37.31 %
    Non-interest expense to average earning assets     1.04 %     1.09 %     1.13 %     1.13 %     1.13 %
                                             
    CAPITAL RATIOS (2)                                        
    Common equity tier 1 capital to risk-weighted assets     11.38 %     11.48 %     11.42 %     11.25 %     10.93 %
    Tier 1 capital to risk-weighted assets     11.38 %     11.48 %     11.42 %     11.25 %     10.93 %
    Total capital to risk-weighted assets     12.81 %     12.93 %     12.90 %     12.77 %     12.43 %
    Tier 1 capital to average assets     9.78 %     9.48 %     9.59 %     9.54 %     9.81 %
    Tangible common equity to total tangible assets (1)     9.84 %     8.89 %     9.25 %     9.47 %     9.33 %
                                             
    (1) This press release contains certain non-GAAP financial measures. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.”
    (2) Regulatory capital ratios for most recent period are preliminary.


    GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures

    This press release contains certain non-GAAP financial measures, including adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders’ equity, and adjusted efficiency ratio. We recorded a one-time expense of $7.2 million in the fourth quarter of 2023 associated with the FDIC’s special assessment to recapitalize the Deposit Insurance Fund following bank failures in the spring of 2023. This assessment was updated in the first quarter of 2024 resulting in additional expense of $1.8 million. We recognized an $8.6 million loss on sale of available-for-sale debt securities in non-interest income during the second quarter of 2025 as a result of restructuring the portfolio. We reversed a $2.3 million legal reserve from interest expense during the second quarter of 2025. These adjustments to our results are unusual, or infrequent, in nature and are not considered to be part of our non-interest expense, non-interest income and interest expense run rates, respectively. Each of adjusted net income, adjusted net income available to common stockholders, adjusted diluted earnings per share, adjusted return on average assets, adjusted return on average common stockholders’ equity and adjusted efficiency ratio excludes the impact of these items, net of tax, and are all considered non-GAAP financial measures. This press release also contains the non-GAAP financial measures of tangible common stockholders’ equity, total tangible assets, tangible book value per share and tangible common equity to total tangible assets, each of which excludes goodwill associated with our acquisition of Metro Bancshares, Inc. in January 2015.

    We believe these non-GAAP financial measures provide useful information to management and investors that is supplementary to our financial condition, results of operations and cash flows computed in accordance with GAAP; however, we acknowledge that these non-GAAP financial measures have a number of limitations. As such, you should not view these disclosures as a substitute for results determined in accordance with GAAP, and they are not necessarily comparable to non-GAAP financial measures that other companies, including those in our industry, use. The following reconciliation table provides a more detailed analysis of the non-GAAP financial measures as of and for the comparative periods presented in this press release. Dollars are in thousands, except share and per share data.

        At June 30,
    2025    		   At March 31,
    2025    		   At December 31,
    2024    		   At September 30,
    2024    		   At June 30,
    2024
    Book value per share – GAAP   $ 31.52     $ 30.56     $ 29.63     $ 28.79     $ 27.71  
    Total common stockholders’ equity – GAAP     1,721,783       1,668,900       1,616,772       1,570,269       1,570,994  
    Adjustment for Goodwill     (13,615 )     (13,615 )     (13,615 )     (13,615 )     (13,615 )
    Tangible common stockholders’ equity – non-GAAP   $ 1,708,168     $ 1,655,285     $ 1,603,157     $ 1,556,654     $ 1,557,379  
    Tangible book value per share – non-GAAP   $ 31.27     $ 30.31     $ 29.38     $ 28.54     $ 27.46  
                                             
    Stockholders’ equity to total assets – GAAP     9.91 %     8.95 %     9.32 %     9.55 %     9.55 %
    Total assets – GAAP   $ 17,378,628     $ 18,636,766     $ 17,351,643     $ 16,449,178     $ 16,448,582  
    Adjustment for Goodwill     (13,615 )     (13,615 )     (13,615 )     (13,615 )     (13,615 )
    Total tangible assets – non-GAAP   $ 17,365,013     $ 18,623,151     $ 17,338,028     $ 16,435,563     $ 16,434,967  
    Tangible common equity to total tangible assets – non-GAAP     9.84 %     8.89 %     9.25 %     9.47 %     9.48 %
        Three Months Ended June 30, 2025   Three Months Ended March 31, 2025   Three Months Ended June 30, 2024   Six Months Ended June 30, 2025   Six Months Ended June 30, 2024
    Net income – GAAP   $ 61,424     $ 63,224     $ 52,136     $ 124,648     $ 102,162  
    Adjustments:                                  
    FDIC special assessment     –       –       –       –       1,799  
    Legal matter accrual reversal     (2,276 )     –       –       (2,276 )     –  
    Loss on marketable securities     8,563       –       –       8,563       –  
    Tax on adjustments     (1,578 )     –       –       (1,578 )     (452 )
    Adjusted net income – non-GAAP   $ 66,133     $ 63,224     $ 52,136     $ 129,357     $ 103,509  
                                       
    Net income available to common stockholders – GAAP   $ 61,393     $ 63,224     $ 52,105     $ 124,617     $ 102,131  
    Adjustments:                                  
    FDIC special assessment     –       –       –       –       1,799  
    Legal matter accrual reversal     (2,276 )     –       –       (2,276 )     –  
    Loss on marketable securities     8,563       –       –       8,563       –  
    Tax on adjustments     (1,578 )     –       –       (1,578 )     (452 )
    Adjusted net income available to common stockholders – non-GAAP   $ 66,102     $ 63,224     $ 52,105     $ 129,326     $ 103,478  
                                       
    Diluted earnings per share – GAAP   $ 1.12     $ 1.16     $ 0.95     $ 2.28     $ 1.87  
    Adjustments:                                  
    FDIC special assessment     –       –       –       –       0.03  
    Legal matter accrual reversal     (0.04 )     –       –       (0.05 )     –  
    Loss on marketable securities     0.16       –       –       0.16       –  
    Tax on adjustments     (0.03 )     –       –       (0.03 )     (0.01 )
    Adjusted diluted earnings per share – non-GAAP   $ 1.21     $ 1.16     $ 0.95     $ 2.36     $ 1.89  
                                       
    Net interest income, on a fully taxable-equivalent basis   $ 131,777                     $ 255,394        
    Adjustments:                                  
    Legal matter accrual reversal     (2,276 )                     (2,276 )      
    Tax on adjustments     571                       571        
    Adjusted net interest income, on a fully taxable-equivalent basis   $ 130,072                     $ 253,689        
                                       
    Net interest margin-GAAP     3.10 %                     3.01 %      
    Average earning assets     17,076,353                       17,132,710        
    Adjusted net interest margin-non-GAAP     3.06 %                     2.99 %      
                                       
    Return on average assets – GAAP     1.40 %     1.45 %     1.34 %     1.42 %     1.30 %
    Net income available to common stockholders – GAAP   $ 61,393     $ 63,224     $ 52,105     $ 124,617     $ 102,131  
    Adjustments:                                  
    FDIC special assessment     –       –       –       –       1,799  
    Legal matter accrual reversal     (2,276 )     –       –       (2,276 )     –  
    Loss on marketable securities     8,563       –       –       8,563       –  
    Tax on adjustments     (1,578 )     –       –       (1,578 )     (452 )
    Adjusted net income available to common stockholders – non-GAAP   $ 66,102     $ 63,224     $ 52,105     $ 129,326     $ 103,478  
    Average assets – GAAP   $ 17,626,503     $ 17,710,148     $ 15,697,538     $ 17,668,094     $ 15,827,894  
    Adjusted return on average assets – non-GAAP     1.50 %     1.45 %     1.34 %     1.48 %     1.31 %
                                       
    Return on average common stockholders’ equity – GAAP     14.56 %     15.63 %     14.08 %     15.08 %     13.96 %
    Net income available to common stockholders – GAAP   $ 61,393     $ 63,224     $ 52,105     $ 124,617     $ 102,131  
    Adjustments:                                  
    FDIC special assessment     –       –       –       –       1,799  
    Legal matter accrual reversal     (2,276 )     –       –       (2,276 )     –  
    Loss on marketable securities     8,563       –       –       8,563       –  
    Tax on adjustments     (1,578 )     –       –       (1,578 )     (452 )
    Adjusted net income available to common stockholders – non-GAAP   $ 66,102     $ 63,224     $ 52,105     $ 129,326     $ 103,478  
    Average common stockholders’ equity – GAAP   $ 1,690,855     $ 1,640,949     $ 1,488,429     $ 1,666,039     $ 1,471,048  
    Adjusted return on average common stockholders’ equity non-GAAP     15.68 %     15.63 %     14.08 %     15.65 %     14.15 %
                                       
    Efficiency ratio     33.46 %     34.97 %     37.31 %     34.22 %     39.42 %
    Net interest income – GAAP   $ 131,687     $ 123,553     $ 105,875     $ 255,240     $ 208,370  
    Adjustments:                                  
    Legal matter accrual reversal     (2,276 )     –       –       (2,276 )     –  
    Adjusted net interest income – non-GAAP   $ 129,411     $ 123,553     $ 105,875     $ 252,964     $ 208,370  
    Total non-interest income – GAAP     421       8,277       8,891       8,698       17,704  
    Adjustments:                                  
    Loss on marketable securities     8,563       –       –       8,563       –  
    Adjusted non-interest income – non-GAAP   $ 8,984     $ 8,277     $ 8,891     $ 17,261     $ 17,704  
    Adjusted net interest income and non-interest income – non-GAAP     138,395       131,830       114,766       270,225       226,074  
    Non-interest expense – GAAP   $ 44,204     $ 46,107     $ 42,818     $ 90,311     $ 89,121  
    Adjustments:                                  
    FDIC special assessment     –       –       –       –       1,799  
    Adjusted non-interest expense – non-GAAP   $ 44,204     $ 46,107     $ 42,818     $ 90,311     $ 87,322  
    Adjusted efficiency ratio – non-GAAP     31.94 %     34.97 %     37.31 %     33.42 %     38.63 %
    CONSOLIDATED BALANCE SHEETS (UNAUDITED)                  
    (Dollars in thousands)                  
        June 30, 2025   June 30, 2024   % Change
    ASSETS                  
    Cash and due from banks   $ 140,659     $ 135,711     4 %
    Interest-bearing balances due from depository institutions     1,236,485       1,129,922     9 %
    Federal funds sold and securities purchased with agreement to resell     333,760       11,132     2,898 %
    Cash and cash equivalents     1,710,904       1,276,765     34 %
    Available for sale debt securities, at fair value     1,227,851       1,174,386     5 %
    Held to maturity debt securities (fair value of $639,455 and $785,270, respectively)     686,652       767,255     (11 )%
    Restricted equity securities     12,156       11,300     8 %
    Mortgage loans held for sale     22,131       11,174     98 %
    Loans     13,232,560       12,332,780     7 %
    Less allowance for credit losses     (169,959 )     (158,092 )   8 %
    Loans, net     13,062,601       12,174,688     7 %
    Premises and equipment, net     59,993       59,200     1 %
    Goodwill     13,615       13,615     – %
    Other assets     582,725       561,429     4 %
    Total assets   $ 17,378,628     $ 16,049,812     8 %
    LIABILITIES AND STOCKHOLDERS’ EQUITY                  
    Liabilities:                  
    Deposits:                  
    Non-interest-bearing demand   $ 2,632,058     $ 2,475,415     6 %
    Interest-bearing     11,230,261       10,783,977     4 %
    Total deposits     13,862,319       13,259,392     5 %
    Federal funds purchased     1,599,135       1,097,154     46 %
    Other borrowings     64,747       64,739     – %
    Other liabilities     130,644       117,951     11 %
    Total liabilities     15,656,845       14,539,236     8 %
    Stockholders’ equity:                  
    Preferred stock, par value $0.001 per share; 1,000,000 authorized and undesignated at June 30, 2025 and June 30, 2024     –       –     – %
    Common stock, par value $0.001 per share; 200,000,000 shares authorized; 54,618,545 shares issued and outstanding at June 30, 2025, and 54,521,479 shares issued and outstanding at June 30, 2024     54       54     – %
    Additional paid-in capital     236,716       234,495     1 %
    Retained earnings     1,500,767       1,322,048     14 %
    Accumulated other comprehensive loss     (16,254 )     (46,521 )   (65 )%
    Total stockholders’ equity attributable to ServisFirst Bancshares, Inc.     1,721,283       1,510,076     14 %
    Noncontrolling interest     500       500     – %
    Total stockholders’ equity     1,721,783       1,510,576     14 %
    Total liabilities and stockholders’ equity   $ 17,378,628     $ 16,049,812     8 %
    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)                      
    (In thousands except per share data)                            
        Three Months Ended June 30,   Six Months Ended June 30,
        2025   2024   2025   2024
    Interest income:                            
    Interest and fees on loans   $ 206,521     $ 194,300     $ 403,457     $ 381,278  
    Taxable securities     16,562       16,158       32,585       32,137  
    Nontaxable securities     5       9       11       18  
    Federal funds sold and securities purchased with agreement to resell     1,592       538       1,612       1,079  
    Other interest and dividends     21,955       16,535       50,066       39,738  
    Total interest income     246,635       227,540       487,731       454,250  
    Interest expense:                            
    Deposits     93,488       104,671       188,233       208,737  
    Borrowed funds     21,460       16,994       44,258       37,143  
    Total interest expense     114,948       121,665       232,491       245,880  
    Net interest income     131,687       105,875       255,240       208,370  
    Provision for credit losses     11,296       5,353       17,926       9,721  
    Net interest income after provision for credit losses     120,391       100,522       237,314       198,649  
    Non-interest income:                            
    Service charges on deposit accounts     2,671       2,293       5,229       4,443  
    Mortgage banking     1,323       1,379       1,936       2,057  
    Credit card income     2,119       2,333       4,087       4,488  
    Securities losses     (8,563 )     –       (8,563 )     –  
    Bank-owned life insurance income     2,126       2,058       4,263       5,289  
    Other operating income     745       828       1,746       1,427  
    Total non-interest income     421       8,891       8,698       17,704  
    Non-interest expense:                            
    Salaries and employee benefits     22,576       24,213       45,455       47,199  
    Equipment and occupancy expense     3,523       3,567       7,245       7,124  
    Third party processing and other services     8,005       7,465       15,743       14,631  
    Professional services     1,904       1,741       3,837       3,205  
    FDIC and other regulatory assessments     2,753       2,202       5,607       6,107  
    Other real estate owned expense     27       7       60       37  
    Other operating expense     5,416       3,623       12,364       10,818  
    Total non-interest expense     44,204       42,818       90,311       89,121  
    Income before income tax     76,608       66,595       155,701       127,232  
    Provision for income tax     15,184       14,459       31,053       25,070  
    Net income     61,424       52,136       124,648       102,162  
    Dividends on preferred stock     31       31       31       31  
    Net income available to common stockholders   $ 61,393     $ 52,105     $ 124,617     $ 102,131  
    Basic earnings per common share   $ 1.12     $ 0.96     $ 2.28     $ 1.87  
    Diluted earnings per common share   $ 1.12     $ 0.95     $ 2.28     $ 1.87  
    LOANS BY TYPE (UNAUDITED)                                        
    (In thousands)                                        
                                             
        2nd quarter 2025   1st quarter 2025   4th quarter 2024   3rd quarter 2024   2nd quarter 2024
    Commercial, financial and agricultural   $ 2,952,028     $ 2,924,533     $ 2,869,894     $ 2,793,989     $ 2,935,577  
    Real estate – construction     1,735,405       1,599,410       1,489,306       1,439,648       1,510,677  
    Real estate – mortgage:                                        
    Owner-occupied commercial     2,557,711       2,543,819       2,547,143       2,441,687       2,399,644  
    1-4 family mortgage     1,561,461       1,494,189       1,444,623       1,409,981       1,350,428  
    Non-owner occupied commercial     4,338,697       4,259,566       4,181,243       4,190,935       4,072,007  
    Subtotal: Real estate – mortgage     8,457,869       8,297,574       8,173,009       8,042,603       7,822,079  
    Consumer     87,258       65,314       73,627       61,986       64,447  
    Total loans   $ 13,232,560     $ 12,886,831     $ 12,605,836     $ 12,338,226     $ 12,332,780  
    SUMMARY OF CREDIT LOSS EXPERIENCE (UNAUDITED)                                
    (Dollars in thousands)                                  
        2nd quarter 2025   1st quarter 2025   4th quarter 2024   3rd quarter 2024   2nd quarter 2024
    Allowance for credit losses:                                        
    Beginning balance   $ 165,034     $ 164,458     $ 160,755     $ 158,092     $ 155,892  
    Loans charged off:                                        
    Commercial, financial and agricultural     6,849       2,415       3,899       3,020       3,355  
    Real estate – construction     –       46       –       –       –  
    Real estate – mortgage     581       3,571       560       252       119  
    Consumer     72       60       211       155       108  
    Total charge offs     7,502       6,092       4,670       3,427       3,582  
    Recoveries:                                        
    Commercial, financial and agricultural     959       171       1,801       616       406  
    Real estate – construction     –       –       –       –       8  
    Real estate – mortgage     1       –       23       2       –  
    Consumer     58       27       151       37       15  
    Total recoveries     1,018       198       1,975       655       429  
    Net charge-offs     6,484       5,894       2,695       2,772       3,153  
    Provision for loan losses     11,409       6,470       6,398       5,435       5,353  
    Ending balance   $ 169,959     $ 165,034     $ 164,458     $ 160,755     $ 158,092  
                                             
    Allowance for credit losses to total loans     1.28 %     1.28 %     1.30 %     1.30 %     1.28 %
                                             
    Allowance for credit losses to total average loans     1.31 %     1.30 %     1.32 %     1.30 %     1.31 %
    Net charge-offs to total average loans     0.20 %     0.19 %     0.09 %     0.09 %     0.10 %
                                             
    Provision for credit losses to total average loans     0.35 %     0.21 %     0.21 %     0.17 %     0.18 %
    Nonperforming assets:                                        
    Nonaccrual loans   $ 68,619     $ 73,793     $ 39,501     $ 37,075     $ 33,454  
    Loans 90+ days past due and accruing     3,549       111       2,965       2,093       1,482  
    Other real estate owned and repossessed assets     311       756       2,531       2,723       1,458  
    Total   $ 72,479     $ 74,660     $ 44,997     $ 41,891     $ 36,394  
                                             
    Nonperforming loans to total loans     0.55 %     0.57 %     0.34 %     0.32 %     0.28 %
    Nonperforming assets to total assets     0.42 %     0.40 %     0.26 %     0.25 %     0.23 %
    Nonperforming assets to earning assets     0.43 %     0.41 %     0.26 %     0.26 %     0.23 %
    Allowance for credit losses to nonaccrual loans     247.69 %     223.64 %     416.34 %     433.59 %     472.57 %
    CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)                        
    (In thousands except per share data)                        
        2nd Quarter 2025   1st Quarter 2025   4th Quarter 2024   3rd Quarter 2024   2nd Quarter 2024
    Interest income:                                      
    Interest and fees on loans   $ 206,521     $ 196,936     $ 200,875     $ 205,952     $ 194,300  
    Taxable securities     16,562       16,023       16,905       17,493       16,158  
    Nontaxable securities     5       6       6       7       9  
    Federal funds sold with agreement to     1,592       20       18       31       538  
    Other interest and dividends     21,955       28,111       26,088       24,496       16,535  
    Total interest income     246,635       241,096       243,892       247,979       227,540  
    Interest expense:                                      
    Deposits     93,488       94,745       98,702       113,211       104,671  
    Borrowed funds     21,460       22,798       22,022       19,647       16,994  
    Total interest expense     114,948       117,543       120,724       132,858       121,665  
    Net interest income     131,687       123,553       123,168       115,121       105,875  
    Provision for credit losses     11,296       6,630       5,704       5,659       5,353  
    Net interest income after provision for credit losses     120,391       116,923       117,464       109,462       100,522  
    Non-interest income:                                      
    Service charges on deposit accounts     2,671       2,558       2,650       2,341       2,293  
    Mortgage banking     1,323       613       1,513       1,352       1,379  
    Credit card income     2,119       1,968       1,867       1,925       2,333  
    Securities losses     (8,563 )     –       –       –       –  
    Bank-owned life insurance income     2,126       2,137       2,131       2,113       2,058  
    Other operating income     745       1,001       642       818       828  
    Total non-interest income     421       8,277       8,803       8,549       8,891  
    Non-interest expense:                                      
    Salaries and employee benefits     22,576       22,879       24,062       25,057       24,213  
    Equipment and occupancy expense     3,523       3,722       3,600       3,795       3,567  
    Third party processing and other services     8,005       7,738       8,515       8,035       7,465  
    Professional services     1,904       1,933       1,981       1,715       1,741  
    FDIC and other regulatory assessments     2,753       2,854       2,225       2,355       2,202  
    Other real estate owned expense     27       33       58       103       7  
    Other operating expense     5,416       6,948       6,455       4,572       3,623  
    Total non-interest expense     44,204       46,107       46,896       45,632       42,818  
    Income before income tax     76,608       79,093       79,371       72,379       66,595  
    Provision for income tax     15,184       15,869       14,198       12,472       14,459  
    Net income     61,424       63,224       65,173       59,907       52,136  
    Dividends on preferred stock     31       –       31       –       31  
        Net income available to common
        stockholders    		   $ 61,393     $ 63,224     $ 65,142     $ 59,907     $ 52,105  
    Basic earnings per common share   $ 1.12     $ 1.16     $ 1.19     $ 1.10     $ 0.96  
    Diluted earnings per common share   $ 1.12     $ 1.16     $ 1.19     $ 1.10     $ 0.95  
    AVERAGE BALANCE SHEETS AND NET INTEREST ANALYSIS (UNAUDITED)
    ON A FULLY TAXABLE-EQUIVALENT BASIS
    (Dollars in thousands)
                                                                 
        2nd Quarter 2025   1st Quarter 2025   4th Quarter 2024   3rd Quarter 2024   2nd Quarter 2024
        Average Balance   Yield / Rate   Average Balance   Yield / Rate   Average Balance   Yield / Rate   Average Balance   Yield / Rate   Average Balance   Yield / Rate
    Assets:                                                            
    Interest-earning assets:                                                            
    Loans, net of unearned income (1)                                                            
    Taxable   $ 12,979,759     6.37 %   $ 12,683,077     6.29 %   $ 12,414,065     6.43 %   $ 12,351,073     6.63 %   $ 12,045,743     6.48 %
    Tax-exempt (2)     30,346     5.51       25,044     4.94       13,198     1.57       15,584     1.86       17,230     2.08  
    Total loans, net of unearned income     13,010,105     6.37       12,708,121     6.28       12,427,263     6.43       12,366,657     6.62       12,062,973     6.48  
    Mortgage loans held for sale     11,739     5.23       6,731     4.76       9,642     5.36       10,674     3.80       6,761     6.13  
    Debt securities:                                                            
    Taxable     1,965,089     3.37       1,934,739     3.31       1,932,547     3.49       1,955,632     3.57       1,936,818     3.33  
    Tax-exempt (2)     492     4.88       589     5.43       606     5.28       815     4.42       1,209     3.64  
    Total securities (3)     1,965,581     3.37       1,935,328     3.31       1,933,153     3.49       1,956,447     3.57       1,938,027     3.33  
    Federal funds sold and securities purchased with agreement to resell     124,303     5.14       1,670     4.86       1,596     4.49       2,106     5.86       38,475     5.62  
    Restricted equity securities     12,146     6.64       11,461     7.43       11,290     6.80       11,290     7.36       11,290     7.16  
    Interest-bearing balances with banks     1,952,479     4.47       2,526,382     4.48       2,143,474     4.81       1,775,192     5.46       1,183,482     5.57  
    Total interest-earning assets   $ 17,076,353     5.80 %   $ 17,189,693     5.69 %   $ 16,526,418     5.87 %   $ 16,122,366     6.12 %   $ 15,241,008     6.01 %
    Non-interest-earning assets:                                                            
    Cash and due from banks     109,506             108,540             103,494             103,539             96,646        
    Net premises and equipment     59,944             59,633             60,708             60,607             59,653        
    Allowance for credit losses, accrued interest and other assets     380,700             352,282             346,763             340,621             300,521        
    Total assets   $ 17,626,503           $ 17,710,148           $ 17,037,383           $ 16,627,133           $ 15,697,828        
                                                                 
    Interest-bearing liabilities:                                                            
    Interest-bearing deposits:                                                            
    Checking (4)   $ 2,222,000     1.78 %   $ 2,461,900     2.38 %   $ 2,353,439     2.61 %   $ 2,318,384     2.97 %   $ 2,227,527     2.85 %
    Savings     101,506     1.63       101,996     1.61       102,858     1.52       102,627     1.76       105,955     1.71  
    Money market     7,616,747     3.67       7,363,163     3.61       7,067,265     3.86       7,321,503     4.45       6,810,799     4.46  
    Time deposits     1,321,404     4.09       1,361,558     4.24       1,286,754     4.45       1,197,650     4.52       1,157,528     4.47  
    Total interest-bearing deposits     11,261,657     3.33       11,288,617     3.40       10,810,316     3.63       10,940,164     4.12       10,301,809     4.09  
    Federal funds purchased     1,855,860     4.49       1,994,766     4.50       1,767,749     4.80       1,391,118     5.42       1,193,190     5.50  
    Other borrowings     64,750     4.26       64,750     4.30       64,738     4.22       64,738     4.22       64,738     4.27  
    Total interest-bearing liabilities   $ 13,182,267     3.50 %   $ 13,348,133     3.57 %   $ 12,642,803     3.80 %   $ 12,396,020     4.26 %   $ 11,559,737     4.23 %
    Non-interest-bearing liabilities:                                                            
    Non-interest-bearing checking     2,633,552             2,600,775             2,672,875             2,575,575             2,560,245        
    Other liabilities     119,829             120,291             130,457             122,455             89,418        
    Stockholders’ equity     1,716,232             1,670,402             1,624,084             1,574,902             1,536,013        
    Accumulated other comprehensive loss     (25,377 )           (29,453 )           (32,836 )           (41,819 )           (47,584 )      
    Total liabilities and stockholders’ equity   $ 17,626,503           $ 17,710,148           $ 17,037,383           $ 16,627,133           $ 15,697,828        
    Net interest spread         2.30 %         2.12 %         2.07 %         1.86 %         1.78 %
    Net interest margin         3.10 %         2.92 %         2.96 %         2.84 %         2.79 %
                                                                 
    (1) Average loans include nonaccrual loans in all periods. Loan fees of $4,430, $3,764, $4,460, $3,949, and $3,317 are included in interest income in the second quarter of 2025, first quarter of 2025, fourth quarter of 2024, third quarter of 2024, and second quarter of 2024, respectively.
    (2) Interest income and yields are presented on a fully taxable equivalent basis using a tax rate of 21%.
    (3) Unrealized losses on debt securities of $(36,381), $(41,970), $(46,652), $(58,802), and $(66,663) for the second quarter of 2025, first quarter of 2025, fourth quarter of 2024, third quarter of 2024, and second quarter of 2024, respectively, are excluded from the yield calculation.
    (4) Includes impact of reversal of a $2.3 million accrual related to a legal matter. Please see “GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures.”

    The MIL Network –

  • MIL-OSI USA: In Letter to Trump, Cantwell Unveils 5-Point Plan to Improve Nation’s Weather Readiness in the Face of NOAA Cuts

    US Senate News:

    Source: United States Senator for Washington Maria Cantwell

    07.21.25

    In Letter to Trump, Cantwell Unveils 5-Point Plan to Improve Nation’s Weather Readiness in the Face of NOAA Cuts

    Cantwell to Trump: “We have a once-in-a-lifetime opportunity to create the world’s best weather forecasting system…”

    WASHINGTON, D.C. – Senator Maria Cantwell (D-Wash), ranking member of the Senate Committee on Commerce, Science, and Transportation – the committee that oversees the National Oceanic and Atmospheric Administration (NOAA) and the National Weather Service (NWS) – today sent a letter to President Donald Trump outlining her five-point plan to bolster the United States’ weather readiness.

    “Communities across the United States are experiencing more frequent, intense, and costly flash floods, hurricanes, tornadoes, atmospheric rivers, landslides, heatwaves, and wildfires,” Sen. Cantwell wrote. “The lessons from Kerrville, Palisades, Asheville, Lahaina, and too many other natural disasters are that providing Americans with more timely and accurate weather information can avoid billions in property losses and save lives. We have a once-in-a-lifetime opportunity to create the world’s best weather forecasting system that would provide Americans with much more detailed and customized alerts days instead of minutes ahead of a looming extreme weather event.”

    Sen. Cantwell’s five recommendations for President Trump are:

    1. Modernize Weather Data Collection: The United States needs to collect and compile more data by land, air, space, and sea by modernizing our weather data infrastructure and other tools, including better radars, hurricane hunters, weather satellites, and ocean buoys.
    • Radar: Upgrading the nation’s aging Doppler radar network will enable meteorologists to deliver more accurate forecasts and provide longer warning lead times. Higher resolution data from new technology called phased array radar can “see” into the storm in ways not visible on current radar. It can zoom in on the most dangerous features of extreme weather and scan the atmosphere in under a minute, six times faster than current radar, to detect rapid changes like tornado formation or microbursts. NOAA is planning to replace the current outdated Doppler network but lacks the resources necessary to develop the best radar technology and infrastructure at the pace we need them to.
    • Hurricane Hunters: NOAA studies have found that including data collected by the Hurricane Hunters improved forecast accuracy by at least 10 to 15 percent. NOAA needs to rebuild its Hurricane Hunter aircraft fleet by replacing the current WP-3D Hurricane Hunter aircraft that have been in service since the 1970s and will be decommissioned by 2030. NOAA’s 2022 Aircraft Plan calls for four new C-130 aircraft to meet this mission, and the bipartisan National Defense Authorization Act for Fiscal Year 2023 (P.L. 117-263, § 11708(b)) included authorization for up to six new aircraft.
    • Weather Satellites: NOAA’s satellites are its “eyes in the sky” that stay locked in place above the United States and give scientists continuous data on storms as they develop. NOAA needs to expand these capabilities with the next generation of weather satellites like the Geostationary Extended Observations (GeoXO) satellite system. Updated satellites will be able to track lightning strikes that start wildfires and smoke which impacts air quality and human health.
    • Buoys and Ocean Data: NOAA’s Integrated Ocean Observing System (IOOS) is a network of buoys, gliders, high frequency radar arrays, and other instruments that gather ocean data critical for weather forecasting, search and rescue, and navigation. we need to modernize and recapitalize aging infrastructure and better integrate ocean data into our weather forecasting models. Enacting the Integrated Ocean Observation System Reauthorization Act of 2025 (S.2126), bipartisan legislation sponsored by Senators Roger Wicker and Cantwell, will help maintain and resource IOOS infrastructure and networks.
    1. World Leading Analytics: We need to catch up with and surpass European weather forecasting capabilities, which will require more supercomputing and improvements in data analytics including assimilation.
    • We want the best forecasts in the world, but the U.S. models are often outperformed by the European model.
    • NOAA needs to increase its focus and investment in supercomputing, data analytics, and data assimilation, a key technique in weather forecasting that combines real-world observations with a numerical weather model.
    • Better forecasts are in reach, we just need to invest in the people and the computing power to be competitive.
    1. Cutting Edge Research: As our communities experience more frequent and extreme weather, now is the time to invest in additional cutting-edge basic and applied research.
    • For decades, NOAA’s Office of Oceanic and Atmospheric Research (OAR) has supported next-generation science and technology that enables increasingly adept forecasting products and services that save lives from extreme weather events.
    • While NOAA’s OAR only accounts for about 10 percent of the agency’s funding, its work has far-reaching impacts including better flash flood and precipitation prediction, developing next generation hurricane models, and improving extreme heat planning scenarios.
    • The office also focuses on ways to better communicate extreme weather threats to the public. For example, NOAA’s National Severe Storm Laboratory in Oklahoma is testing a new tornado and extreme weather early warning system. Even though it’s still in the testing phase, in March the system provided Missouri communities two hours of lead time, allowing 120 people to seek shelter before a dangerous EF-3 tornado touched down. Current tornado warnings only give communities 13 minutes of warning on average.
    1. Modernizing Alert Systems: We must strengthen and expand weather emergency communication channels to keep the public informed and help first responders prepare and react to natural disasters.
    • Americans need more timely, relevant, and actionable information so they know when to get out of harm’s way. Investments like upgrading NOAA’s weather radio technology from obsolete copper technologies to Internet or satellite-based systems are vital to providing reliable and continuous weather and emergency alerts.
    • Expanding NOAA’s VHF broadcasts to reach rural areas that other systems do not reliably cover will provide irreplaceable hazard alerts for campers, tourists, hunters, and tribal members, as well as mining, forestry, and agriculture workers living in remote areas.
    • However, no single alert technology should be considered sufficient in an emergency. We should augment both public and private alert communications and embrace multi-channel delivery systems to ensure messages reach users via their preferred platforms, whether that is through FM and AM radio, apps, websites, SMS, push notifications, television, or social media. The private sector can provide value-added information including more customized alerts and warnings and giving people additional ways to access critical and timely information.
    • Expanding current FEMA programs to build out local sirens and provide first responders with crucial flood maps and satellite images will also significantly enhance local disaster response capabilities.
    1. Advance Bipartisan Legislation: The bipartisan Weather Act Reauthorization Act of 2024 would strengthen weather research and forecasting and expand commercial data partnerships.
    • A bipartisan bill Chairman Ted Cruz and I introduced last year, the Weather Act Reauthorization Act of 2024 (S. 5601), would modernize the essential research programs you signed into law in the 2017 Weather Act and establish new programs to advance forecasting, strengthen emergency preparedness, and support farmers and resource managers with better tools for agriculture and water management.
    • The legislation would take the critical first steps in addressing NOAA’s aging radar network by directing the agency to design and deploy the next generation of weather radar technology. It also expands and codifies public-private partnerships to acquire and utilize innovative data sources, supporting efforts like the Commercial Data Program. Former House Science Chairman Frank Lucas and Ranking Member Zoe Lofgren introduced a bipartisan companion bill in the House (H.R. 3816) last month, which will be marked up by the full Committee this Wednesday.

    This morning, Sen. Cantwell joined CNN’s Pamela Brown to discuss her plan to improve the nation’s weather readiness. The interview is HERE.

    On Sunday, July 13, Sen. Cantwell joined CBS’s Face the Nation with Margaret Brennan to discuss the importance of funding and staffing for NOAA and the NWS.

    “The more you can move people and resources out of the way of a storm, the more you can predict what might happen, the better prepared we’re going to be. And that’s going to help us save lives, and certainly save dollars,” Sen. Cantwell told Brennan. Video of her segment is HERE and HERE; a transcript is HERE.

    NOAA’s cutting-edge science informs NWS weather forecasts, which help local communities prepare for and respond to events like the recent deadly floods in Central Texas. President Trump’s proposed budget would slash NOAA’s funding by $2.2 billion – a 27% cut – and his DOGE team has caused over 2,000 job losses at the agency since January.

    Earlier this month, Sen. Cantwell questioned Dr. Neil Jacobs, President Donald Trump’s nominee to head NOAA, about his plans to preserve the agency’s mission as the administration continues to hack away at NOAA’s budget, workforce, and programs.

    Last month, Sen. Cantwell joined renowned meteorologists from across the country for a virtual presser to sound the alarm on the NWS cuts, and called on the Trump Administration to restore the agency to full capacity.

    The full text of the letter to President Trump is below:

    July 21, 2025

    The Honorable Donald J. Trump

    The White House

    1600 Pennsylvania Avenue, N.W.

    Washington, DC 20500

    Dear Mr. President,

    Communities across the United States are experiencing more frequent, intense, and costly flash floods, hurricanes, tornadoes, atmospheric rivers, landslides, heatwaves, and wildfires. The lessons from Kerrville, Palisades, Asheville, Lahaina, and too many other natural disasters are that providing Americans with more timely and accurate weather information can avoid billions in property losses and save lives. We have a once-in-a-lifetime opportunity to create the world’s best weather forecasting system that would provide Americans with much more detailed and customized alerts days instead of minutes ahead of a looming extreme weather event.

    There is strong support for making the generational investments necessary to become a weather ready nation that will empower Americans to get out of harm’s way. It will take better weather data collection, world leading analytics, cutting edge research, modernizing alert systems, and a partnership between your Administration and Congress to pass enabling legislation. To that end, I offer the following five recommendations that if pursued on a bipartisan basis would make America the world leader in weather forecasting:

    1) Modernizing Weather Data Collection

    We need to compile more data by land, air, space, and sea by modernizing our weather data collection tools, including better radar, hurricane hunters, weather satellites, and ocean buoys

    Radar: Upgrading the nation’s aging Doppler radar network will enable meteorologists to deliver more accurate forecasts and provide longer warning lead times. It does this with higher resolution data from phased array radar (PAR) to “see” into the storm in ways not visible on current radar. PAR can detect rapid changes in storms like tornado formation or microbursts, improve tracking of hazards like hail, and zoom in on the most dangerous features of extreme weather. These systems can also scan the atmosphere in under a minute, six times faster than current radar, detecting rapid changes in the storm for increased warning lead times and fewer false alarms.

    This new technology should replace the current analog Doppler radar systems from the 1980s, which are increasingly costly to maintain and risks failure every day. NOAA is planning to replace the current outdated Doppler network but lacks the resources necessary to develop the best radar technology and infrastructure at the pace we need them to.

    Hurricane Hunter Aircraft: NOAA studies have found that including data collected by the Hurricane Hunters improved forecast accuracy by at least 10 to 15 percent. However, NOAA needs to rebuild its Hurricane Hunter aircraft fleet by replacing the current WP-3D Hurricane Hunter aircraft that have been in service since the 1970s and will be decommissioned by 2030. New C-130 Hurricane Hunter aircraft are more capable than the half-century old WP-3D aircraft, with the ability to deploy more drones and uncrewed systems, conduct higher resolution scans from more advanced radar, and provide highly accurate wind, temperature, pressure, and humidity measurements from additional sensors.

    NOAA’s 2022 Aircraft Plan calls for four new C-130 aircraft to meet this mission, and the bipartisan National Defense Authorization Act for Fiscal Year 2023 (P.L. 117-263, § 11708(b)) included authorization for up to six new aircraft. While two C-130 aircraft are funded, completing the fleet modernization in fiscal year 2026 will ensure forecasters can utilize this irreplaceable data source to better predict the path and intensity of hurricanes headed toward the United States, which is crucial for first responders to inform evacuations and pre-position emergency resources.

    Weather Satellites: NOAA’s satellites are its “eyes in the sky” that stay locked in place above the United States and give scientists continuous data on storms as they develop. NOAA needs to expand these capabilities with the next generation of weather satellites, the Geostationary Extended Observations (GeoXO) satellite system. Once launched, GeoXO can track lightning strikes that start wildfires, wildfire smoke, red tides that poison fisheries, and generally provide better extreme weather early warning capabilities. For example, if GeoXO had been deployed during the 2023 Canadian wildfire smoke event that blanketed much of the eastern United States, its instruments could have provided hourly, high-resolution maps of smoke pollution, enabling more accurate health advisories and allowing schools, airlines, and outdoor workers to make safer decisions. This year, smoke from massive Canadian wildfires is again posing health risks to Americans across the country. This is new technology that does not exist in today’s satellite system.

    To get these next generation satellites built, NOAA must proceed with the recommendations laid out under your first Administration and build the planned network of six satellites, five instruments, and supporting ground systems. The data from the Lightning Mapper (LMX), Sounder (GXS), Atmospheric Composition (ACX), Imager (GXI), and Ocean Color (OCX) instruments are key and necessary inputs for any world leading forecasting model.

    Buoys and Ocean Data: NOAA’s Integrated Ocean Observing System (IOOS) is a network of buoys, gliders, high frequency radar arrays, and other instruments that gather ocean data critical for weather forecasting, search and rescue, and navigation. The IOOS network provides real-time surface and subsurface ocean temperature measurements that feed into NOAA’s hurricane forecast model to detect rapid intensification of hurricanes and other extreme storms. For example, the above average warm water in the Gulf contributed to the recent flash flooding in Central Texas, while changes to tropical weather patterns and ocean temperatures have contributed to flooding across the country, from the Southwest through the Mid-Atlantic and into the Northeast. Just halfway through the summer, according to the National Weather Service, the country has already experienced twice as many floods in July as usual.

    To preserve and expand the critical real-time data these buoys provide, we need to modernize and recapitalize aging infrastructure and better integrate ocean data into our weather forecasting models. Enacting the Integrated Ocean Observation System Reauthorization Act of 2025 (S.2126), bipartisan legislation Senator Roger Wicker and I introduced, will help maintain and resource IOOS infrastructure and networks.

    2) World Leading Analytics

    Catching up with and surpassing European weather forecasting capabilities will require more supercomputing and improvements in data analytics

    NOAA has long aimed to close the performance gap between its Global Forecast System (GFS) and the European Centre for Medium-Range Weather Forecasts, which often outperforms U.S. forecasts. For example, in October 2012, the European model correctly predicted Hurricane Sandy would turn toward the U.S. East Coast seven to eight days in advance, while the U.S. model initially forecast it would head out to sea, missing the U.S. entirely. Of course, Sandy did hit the U.S., with devastating effects for the entire Mid-Atlantic region, killing 254 people and causing nearly $70 billion in damages. Conversely, in 2015, the European model predicted Hurricane Joaquin would stay offshore, which it did, while the U.S. model forecast a direct hit on the East Coast, prompting costly emergency preparations that were ultimately unnecessary. And in February 2021, when a historic Arctic outbreak plunged Texas and much of the South into record cold with heavy snow and ice, and the European model provided more accurate early guidance on the extent and longevity of the cold air mass. According to NOAA and the Texas Department of State Health Services, at its peak, the power outages that resulted left nearly 10 million people in the cold and dark, unable to cook food, and resulted in more than 200 deaths.

    In order to catch up to Europe’s highly advanced weather modeling, NOAA needs to increase its focus and investment in supercomputing, data analytics, and data assimilation, a key technique in weather forecasting that combines real-world observations with a numerical weather model. We need to take steps to expand the GFS ensemble system with higher resolution and better physics, refine the Unified Forecast System, and streamline the path from research to operations with projects like the Earth Prediction Innovation Center (EPIC) to improve collaboration with external scientists and the private sector. All of this will require Congress to provide NOAA with more supercomputing resources if we are to lead the world in weather forecasting.

    3) Cutting Edge Research

    As our communities experience more frequent and extreme weather, now is the time to invest in additional cutting-edge basic and applied research

    For decades, NOAA’s Office of Oceanic and Atmospheric Research has supported next-generation science and technology that enables increasingly adept forecasting products and services that save lives from extreme weather events. While NOAA research only accounts for about 10 percent of the agency’s funding, its work has far-reaching impacts including better flash flood and precipitation prediction, developing next generation hurricane models, and improving extreme heat planning scenarios. The research arm also operates testbeds where new technologies and models are rigorously evaluated before they are transitioned to NOAA operations or private sector applications.

    The office also focuses on ways to better communicate extreme weather threats to the public. For example, NOAA’s National Severe Storm Laboratory in Oklahoma is testing a new tornado and extreme weather early warning system. Even though it’s still in the testing phase, in March the system provided Missouri communities two hours of lead time, allowing 120 people to seek shelter before a dangerous EF-3 tornado touched down. Current tornado warnings only give communities 13 minutes of warning on average.

    4) Modernizing Alert Systems

    We must strengthen and expand weather emergency communication channels to keep the public informed and help first responders prepare and react to natural disasters

    Americans need more timely, relevant, and actionable information so they know when to get out of harm’s way. Investments like upgrading NOAA’s weather radio technology from obsolete copper technologies to Internet or satellite-based systems are vital to providing reliable and continuous weather and emergency alerts. Expanding NOAA’s VHF broadcasts to reach rural areas that other systems do not reliably cover will provide irreplaceable hazard alerts for campers, tourists, hunters, and tribal members, as well as mining, forestry, and agriculture workers living in remote areas. Expanding current FEMA programs to build out local sirens and provide first responders with crucial flood maps and satellite images will also significantly enhance local disaster response capabilities.

    However, no single alert technology should be considered sufficient in an emergency. We should augment both public and private alert communications and embrace multi-channel delivery systems to ensure messages reach users via their preferred platforms, whether that is through FM and AM radio, apps, websites, SMS, push notifications, television, or social media. The private sector can provide value-added information including more customized alerts and warnings, giving people additional ways to access critical and timely information.

    5) Advancing Bipartisan Legislation

    The bipartisan Weather Act Reauthorization Act of 2024 would strengthen weather research and forecasting and expand commercial data partnerships

    A bipartisan bill Chairman Ted Cruz and I introduced last year, the Weather Act Reauthorization Act of 2024 (S. 5601) would modernize the essential research programs you signed into law in the 2017 Weather Act and establish new programs to advance forecasting, strengthen emergency preparedness, and support farmers and resource managers with better tools for agriculture and water management. The legislation also expands and codifies public-private partnerships to acquire and utilize innovative data sources, supporting efforts like the Commercial Data Program. Former House Science Chairman Frank Lucas and Ranking Member Zoe Lofgren introduced a bipartisan companion bill in the House (H.R. 3816) last month.

    Now is the time to take the tough lessons learned in the wake of the recent natural disasters and human tragedies in places like Texas, North Carolina, and New Mexico and create the world’s best weather prediction system. We must meet the moment or the situation is only going to get worse. The United States used to experience an average of nine extreme weather events every year that cost over $1 billion each, but in the last five years the number of disasters has spiked to an average of 23 per year, and last year it was 27 events. A recent comprehensive government study predicted that extreme weather will cost Americans $1.5 trillion over the next decade, not including loss of life or health-related costs. That’s why the costs of making the once-in-a-lifetime smart investments described above are minuscule compared to savings that better weather forecasting will provide every American.

    Sincerely,

    MIL OSI USA News –

  • MIL-OSI United Nations: Readout of the Secretary-General’s meeting with H.E. Mr. Petteri Orpo, Prime Minister of the Republic of Finland

    Source: United Nations secretary general

    The Secretary-General met with H.E. Mr. Petteri Orpo, Prime Minister of the Republic of Finland. The Secretary-General and the Prime Minister discussed the global geopolitical situation, including Ukraine and the Middle East, along with the role of the United Nations.

    The 2030 Agenda and the UN80 initiative were also discussed. The Secretary-General commended Finland’s leadership in advancing multilateralism, and its steadfast contributions to the UN system.
     

    MIL OSI United Nations News –

  • MIL-OSI Canada: Tribunal Terminates Inquiry—Corrosion-resistant Steel Sheet from Türkiye

    Source: Government of Canada News

    Ottawa, Ontario, July 21, 2025—The Canadian International Trade Tribunal today terminated its final injury inquiry to determine whether the dumping of corrosion-resistant steel sheet, originating in or exported from the Republic of Türkiye, by Borçelik Çelik Sanayi Ticaret, has injured Canadian producers. The Tribunal’s inquiry was required by law as a result of the initiation of a dumping investigation by the Canada Border Services Agency (CBSA).

    On July 16, 2025, the CBSA determined that there had been no dumping and terminated its dumping investigation. Therefore, the Tribunal will not continue its final injury inquiry.

    The Tribunal is an independent quasi-judicial body that reports to Parliament through the Minister of Finance. It hears cases on dumped and subsidized imports, safeguard complaints, complaints about federal government procurement and appeals of customs and excise tax rulings. When requested by the federal government, the Tribunal also provides advice on other economic, trade and tariff matters.

    MIL OSI Canada News –

  • MIL-OSI USA: ICMYI: Estes Joins Washington Watch with Tony Perkins

    Source: United States House of Representatives – Congressman Ron Estes (R-Kansas)

    U.S. Congressman Ron Estes (R-Kansas) joined Washington Watch with Tony Perkins with guest host Jody Hice to discuss the rescissions package, federal spending and provisions within the One Big, Beautiful Bill that will help Kansans and Americans, and more. Watch the interview on YouTube.

    On the rescissions package:

    “Obviously there’s a lot of work we need to do. One out of five dollars that the government spends is borrowed, so we’ve got a lot of things we need to look at. As you said, the rescissions package here was the first time in decades that a president has requested that discretionary spending be pulled back. That, ‘Hey, we don’t need to spend everything that was appropriated a year or longer ago, and focus on specific areas.’

    “If you look through what’s in that rescissions package, the things that we were particularly pulling out, things like funding for NPR. They wanted to fund drag queen programs for children and programs talking about animals need to have their own pronouns … PBS had programs talking about white privilege. 

    “We all heard earlier this year all of the horror stories coming out of USAID in terms of the money that was being wasted around the world. Things like $3 million for electric vehicles in Vietnam and $70,000 for a Diversity, Equity, and Inclusion musical in Ireland. I don’t know why Ireland would want to have a DEI musical, but, if they do, the Irish taxpayers ought to pay for it and not American taxpayers. 

    “It’s great to do this rescissions package. [I was] glad to hear Speaker Johnson reiterate today that we need to be doing more of this as we look at all of the discretionary spending that comes out of the federal government, and what do we do going forward. We’ve got a lot of work to do, not just on a discretionary side with rescissions, but obviously some of those automatic spending programs as well.”

    On other areas of the federal government that may be right for rescissions:

    “When we look across the discretionary course, the spending has grown so great since before Covid. If you look at going back to I believe 2019, our tax revenue has gone up. It’s gone up 46% or so, so we’ve got a lot more tax revenue coming in after we passed the Tax Cuts and Jobs Act in 2017. 

    “What we’ve seen is spending’s gone up 70%. Some of that was temporary spending, or should have been temporary spending in Covid, but now it’s gotten baked in and it’s continued on grant programs and other areas across multiple programs. We’ve got so many programs at the federal level that are redundant. You may have four or five different programs in two or three different agencies that are designed to target the same issue. So we’ve got lots of areas to look at that. 

    “DOGE did a great effort earlier this year in identifying some of those areas, but we need to have a constant look at that in terms of where do we spend money, where should we be spending money, and does it make sense to spend dollars at this point, particularly when we’re borrowing one out of five dollars that’s being spent.”

    On the tone of Democrats’ messaging to their voter base:

    “[Democrats] really are [tone deaf.] They don’t have a positive message. They don’t have something that they want America to be for. Basically the Democrat party has become a party of socialists. They’re looking at, ‘How can they make the government spend and dictate what other people do?’ 

    “For example, we look at the One Big, Beautiful Bill, I could talk about so many great provisions there. But their message out of the One Big, Beautiful Bill, that they oppose, is because they wanted to make sure that illegal immigrants got Medicaid. They wanted to make sure that people didn’t have to work at all for the Medicaid dollars that would be given to them to provide for their healthcare, [for] even as little as 20 hours a week, working in a job or getting an education or even in a volunteer role. And so, as they get more strident trying to talk against commonsense things, the American public is turning against them. 

    “When you look at the polling data that’s out there right now, of all Americans, [there is] 72% opposition to Democrats and the positions they’re taking in Congress. Even among Democrats, there’s a majority, 52% of Democrats are not happy that Democrats in Congress are not doing what should be done for America.”

    On Congressman Estes’ op-ed on the One Big, Beautiful Bill:

    “We talk a lot about the One Big, Beautiful Bill. There’s just so much positive things in there. A lot of it was centered around the tax provisions that we needed to extend after 2017, that were going to expire this year, and the results of provisions around border security and defense. But if you really peel some of the layers back and look at some of the details, there’s a whole lot of pro-family and pro-life provisions in there. 

    “What we really wanted to do is make sure that, for example, Medicaid funding was used not by Planned Parenthood to provide abortions. I mean we should have Medicaid to actually help people preserve and protect life and not end it. We wanted to make sure that families could raise their children … So we focused on increasing the Child Tax Credit for families and indexing it for inflation. We increased a tax credit for adoption for people to adopt families. That’s so important now when we see the birth rate dropping down to 11.7% per thousand. We need to have a continual growth in population to make sure that America continues to grow. 

    “You look at provisions like employer-funded childcare provisions. We wanted to make sure those were available. Permanent family and medical leave to help people who maybe have a temporary illness or an issue with their family. We wanted to make sure after these disastrous years of Bidenflation that people were able to raise their families and have the income to provide for their family.”

    MIL OSI USA News –

  • MIL-OSI USA: Huffman Demands Answers from President Trump Over Mishandling of Grand Canyon Wildfire

    Source: United States House of Representatives – Congressman Jared Huffman Representing the 2nd District of California

    Huffman also calls for independent investigation, accountability over catastrophic wildfire response

    July 21, 2025

    Washington, D.C. – Today, Natural Resources Ranking Member Jared Huffman (D-Calif.) wrote to President Trump demanding answers on the catastrophic federal response to the Dragon Bravo Fire, which has torn through the North Rim of Grand Canyon National Park. 

    The blaze, which ignited on July 4, was allowed to burn under “managed fire” protocols for days despite record-high heat, extreme drought, and volatile conditions — ultimately destroying the historic Grand Canyon Lodge and other irreplaceable park infrastructure. 

    In a letter sent to President Trump today, Huffman made clear that the consequences of this failure fall squarely on the President and his top officials.

    “As you have insisted in many, many other cases, the ultimate responsibility for policy decisions lies with you and your appointees, not with career civil servants,” Huffman wrote. “Yet incredibly, we have not heard anything from you, or from Secretaries Burgum and Rollins about this massive fire and the destruction it has wrought [on] one of America’s most iconic national parks.”

    Huffman pointed to the administration’s top-down proposal to consolidate all federal wildfire response under the Department of the Interior as a cause for alarm.

    He wrote: “While managed fire practices are a necessary tool in many circumstances… it appears they were clearly the wrong approach in this case given the exceptionally hot, dry, and volatile conditions on the ground.”

    In the letter, Huffman calls for detailed documentation and internal communications related to the fire, as well as answers to five key questions about when federal leadership was notified, how frequently they were updated, and whether firefighting resources were requested or withheld.

    “Rebuilding infrastructure at the North Rim will take years and cost hundreds of millions of dollars. There is a clear need to examine the decision-making process to understand how this was allowed to happen.”

    Huffman also sent a letter to the Office of Inspector General of the Interior and Agriculture Departments urging an independent investigation into the administration’s failure. He raised concerns about political interference and called for a full accounting of who knew what, when — and why the fire was allowed to burn in such a high-risk environment.

    Ranking Member Huffman requested a full response from the administration by Monday, August 4, 2025.

    Read the full letter to the President here.

    Read the full letter to the OIG here.

    ###

    Previous Article

    MIL OSI USA News –

  • MIL-OSI USA: ICYMI: De La Cruz and Miller Deliver Aid to South Texas

    Source: United States House of Representatives – Monica De La Cruz (TX-15)

    ICYMI: Washington, DC – Congresswoman Monica De La Cruz (TX-15) and Texas Department of Agriculture Commissioner Sid Miller held a joint press conference in Mission, Texas, to announce the delivery of drought relief funding through the 1944 Water Treaty Agricultural Assistance Program. 

    Watch Congresswoman De La Cruz’s full remarks here.

    “The $280 million in funding is critical for Texas farmers and ranchers after suffering severe losses due to the Government of Mexico’s refusal to comply with the 1944 Water Treaty. I am proud to have secured these funds and deliver solutions for the families, businesses, and communities that rely on Texas agriculture to thrive.” – Congresswoman Monica De La Cruz

    “This $280 million is a lifeline, and I am proud to partner with Congresswoman Monica De La Cruz to help agriculture producers along the Rio Grande stay in business, pay their bills, and keep putting food on our tables. Congresswoman De La Cruz, her staff, and my agency have worked tirelessly to deliver this much-needed relief, and we are thrilled to announce that it’s finally here.” – Texas Department of Agriculture Commissioner Sid Miller

    “The delivery of $280 million in drought assistance to South Texas will provide much-needed relief to farmers and ranchers in the Valley who have suffered from Mexico’s repeated refusal to provide the water it owes under the Water Treaty. I was proud to work alongside Secretary Rollins and lead several of my colleagues from Texas in the mission to secure this funding, and I look forward to continuing to partner with the Trump administration and state leaders to provide every resource necessary for our agriculture community.” – Senator John Cornyn

    Background: 

    The Texas Department of Agriculture’s 1944 Water Treaty Agricultural Assistance Program provides $280 million in essential aid to farmers and ranchers in the Rio Grande Valley affected by Mexico’s continued failure to supply water as mandated by the 1944 Water Treaty.

    The funds are part of a $280 million grant agreement between the Texas Department of Agriculture (TDA) and the U.S. Department of Agriculture (USDA), secured through legislation De La Cruz included in the American Relief Act. This legislation authorized USDA Secretary Brooke Rollins to allocate emergency aid to South Texas producers who have suffered severe financial losses due to the Mexican government’s failure to meet water delivery obligations.

    The funds are expected to be delivered this week.

    MIL OSI USA News –

  • MIL-OSI USA: Kamlager-Dove, Los Angeles Leaders Sound the Alarm: Defunding Planned Parenthood Would Lead to a Public Health Crisis

    Source: United States House of Representatives – Congresswoman Sydney Kamlager California (37th District)

    LOS ANGELES, CA – Today, Congresswoman Sydney Kamlager-Dove (CA-37), Board Co-Chair of Planned Parenthood L.A., led leaders from across Los Angeles County, including L.A. County Supervisor Holly J. Mitchell and Director of L.A. County Public Health, Dr. Barbara Ferrer, in sounding the alarm on the looming public health crisis that would be triggered by federal defunding of Planned Parenthood. A livestream of the press conference is available here.

    Earlier this month, President Trump signed a budget reconciliation bill that includes a provision to “defund” Planned Parenthood health centers nationwide. Planned Parenthood Federation of America (PPFA) filed a lawsuit challenging the law and its unconstitutional, politically motivated attack on local health centers’ ability to provide care. A federal judge issued a temporary restraining order that is set to expire today.

    “We refuse to stand by while the Trump Administration dismantles our health care system and further erodes our reproductive rights,” said Rep. Sydney Kamlager-Dove, Planned Parenthood Los Angles Board Co-Chair. “Because they couldn’t eradicate abortion through Dobbs, they snuck a backdoor abortion ban into their Big Ugly Bill to target providers and threaten their ability to offer care. Make no mistake, California will remain a beacon of reproductive freedom. We will not be intimidated, we will not be silenced, and we will continue to fight—for Planned Parenthood, for providers, and for every patient who depends on them.”

    “Stripping Medicaid funding from Planned Parenthood doesn’t just threaten clinics, it threatens people. Forcing clinics to shut down is a direct assault on the health and well-being of Black and Brown communities, low-income families, and others for whom Planned Parenthood is their only source of health care,” said L.A. County Supervisor, Holly Mitchell.
     
    “Planned Parenthood plays a vital role in advancing health equity across Los Angeles County. With 24 health centers serving over 260,000 patient visits each year, many in communities that have long been medically underserved, Planned Parenthood serves as a trusted, valued, and essential health care provider,” said Dr. Barbara Ferrer, Director of Los Angeles County’s Department of Public Health.  “By singling out Planned Parenthood, the federal government is disrupting the delivery of high-quality medicine and the primacy of the provider-patient relationship for thousands of people across Los Angeles. Sadly, this short-sited politically motivated move by the federal government will deepen longstanding health inequities and threaten the well-being of so many.”
     
    “Losing access to Planned Parenthood health centers would be not just be a disaster for public health, but also for the young people, women and families who rely on our services to determine the course of their own futures. My message to every Planned Parenthood Los Angeles patient is this: Our doors stay open, and care continues. We’ve been honored to serve this community for 60 years – and we have no intention of going anywhere,” said Sue Dunlap, President and CEO of Planned Parenthood Los Angeles.

    Like any other health care provider, Planned Parenthood is reimbursed for services provided to patients. Defunding means that Planned Parenthood health centers will not receive federal reimbursement for care provided to patients who use Medicaid for their health coverage. More than 80% of Planned Parenthood’s patients in California rely on Medi-Cal, the state Medicaid program, to access birth control, cancer screenings, STI testing and treatment, and more.

    Sadly, we already know where federal defunding of Planned Parenthood will lead. Cancers will go undetected, the STI crisis will worsen, wellness exams and preventative care will substantially decline, and it will be harder than ever for people to access birth control.

    Moreover, people will forgo essential health care and instead turn to already overcrowded emergency rooms for what could have been routine appointments. These are real concerns in Los Angeles, where stark health inequities and stubborn gaps in reproductive health access persist.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: 5 Things to Know About Powerful New U.S.-India Satellite, NISAR

    Source: NASA

    Data from NISAR will map changes to Earth’s surface, helping improve crop management, natural hazard monitoring, and tracking of sea ice and glaciers.
    A new U.S.-India satellite called NISAR (NASA-ISRO Synthetic Aperture Radar) will provide high-resolution data enabling scientists to comprehensively monitor the planet’s land and ice surfaces like never before, building a detailed record of how they shift over time. Hailed as a critical part of a pioneering year for U.S.-India civil space cooperation by President Trump and Prime Minister Modi during their visit in Washington in February, the NISAR launch will advance U.S.-India cooperation and benefit the U.S. in the areas of disaster response and agriculture.
    As the first joint satellite mission between NASA and the Indian Space Research Organisation (ISRO), NISAR marks a new chapter in the growing collaboration between the two space agencies. Years in the making, the launch of NISAR builds on a strong heritage of successful programs, including Chandrayaan-1 and the recent Axiom Mission 4, which saw ISRO and NASA astronauts living and working together aboard the International Space Station for the first time.
    The information NISAR provides will help decision-makers, communities, and scientists monitor agricultural fields, refine understanding of natural hazards such as landslides and earthquakes, and help teams prepare for and respond to disasters like hurricanes, floods, and volcanic eruptions. The satellite will also provide key global observations of changes to ice sheets, glaciers, and permafrost, as well as forests and wetlands.
    The NISAR mission is slated to launch no earlier than July 30 from Satish Dhawan Space Centre on India’s southeastern coast aboard an ISRO Geosynchronous Satellite Launch Vehicle.
    Here are five things to know about NISAR:
    1. The NISAR satellite will provide a 3D view of Earth’s land and ice.
    Two synthetic aperture radars (SARs) aboard NISAR will detect changes in the planet’s surface down to fractions of an inch. The spacecraft will bounce microwave signals off Earth’s surface and receive the return signals on a radar antenna reflector measuring 39 feet (12 meters) across. The satellite’s ability to “see” through clouds and light rain, day and night, will enable data users to continuously monitor earthquake- and landslide-prone areas and determine how quickly glaciers and ice sheets are changing. It also will offer unprecedented coverage of Antarctica, information that will help with studying how the continent’s ice sheet changes over time.
    2. Data from NISAR will provide critical insights to help governments and decision-makers plan for natural and human-caused hazards.
    Earthquakes, volcanoes, and aging infrastructure can pose risks to lives and property. Able to see subtle changes in Earth’s surface, NISAR can help with hazard-monitoring efforts and potentially give decision-makers more time to prepare for a possible disaster. For earthquakes, NISAR will provide insights into which parts of a fault slowly move without producing quakes and which are locked together and could potentially slip. The satellite will be able to monitor the area around thousands of volcanoes, detecting land movement that could be a precursor to an eruption. When it comes to infrastructure such as levees, aqueducts, and dams, NISAR data collected over time can help managers detect if nearby land motion could jeopardize key structures, and then assess the integrity of those facilities.
    3. The most advanced radar system ever launched as part of a NASA or ISRO mission, NISAR will generate more data on a daily basis than any previous Earth satellite from either agency.
    About the length of a pickup truck, NISAR’s main body contains a dual-radar payload — an L-band system with a 10-inch (25-centimeter) wavelength and an S-band system with a 4-inch (10-centimeter) wavelength. Each system is sensitive to land and ice features of different sizes and specializes in detecting certain attributes, such as moisture content, surface roughness, and motion. By including both radars on one spacecraft — a first — NISAR will be more capable than previous SAR missions. These two radars, one from NASA and one from ISRO, and the data they will produce, exemplify how collaboration between spacefaring allies can achieve more than either would alone.

    The radars will generate about 80 terabytes of data products per day over the course of NISAR’s prime mission. That’s roughly enough data to fill about 150 512-gigabyte hard drives each day. The information will be processed, stored, and distributed via the cloud — and accessible to all.

    4. The NISAR mission will help monitor ecosystems around the world.
    The mission’s two radars will monitor Earth’s land and ice-covered surfaces twice every 12 days. Their near-comprehensive coverage will include areas not previously covered by other Earth-observing radar satellites with such frequency. The NISAR satellite’s L-band radar penetrates deep into forest canopies, providing insights into forest structure, while the S-band radar is ideal for monitoring crops. The NISAR data will help researchers assess how forests, wetlands, agricultural areas, and permafrost change over time.
    5. The NISAR mission marks the first collaboration between NASA and ISRO on a project of this scale and marks the next step in a long line of Earth-observing SAR missions.
    The NISAR satellite features components developed on opposite sides of the planet by engineers from ISRO and NASA’s Jet Propulsion Laboratory working together. The S-band radar was built at ISRO’s Space Applications Centre in Ahmedabad, while JPL built the L-band radar in Southern California. After engineers from JPL and ISRO integrated NISAR’s instruments with a modified ISRO I3K spacecraft bus and tested the satellite, ISRO transported NISAR to Satish Dhawan Space Centre in May 2025 to prepare it for launch.
    The SAR technique was invented in the U.S. in 1952 and now countries around the globe have SAR satellites for a variety of missions. NASA first used the technique with a space-based satellite in 1978 on the ocean-observing Seasat, which included the first spaceborne SAR instrument for scientific observations. In 2012, ISRO began launching SAR missions starting with Radar Imaging Satellite (RISAT-1), followed by RISAT-1A in 2022, to support a wide range of applications in India.
    More About NISAR
    Managed by Caltech in Pasadena, JPL leads the U.S. component of the project and provided the L-band SAR. JPL also provided the radar reflector antenna, the deployable boom, a high-rate communication subsystem for science data, GPS receivers, a solid-state recorder, and payload data subsystem. NASA’s Goddard Space Flight Center manages the Near Space Network, which will receive NISAR’s L-band data.
    The ISRO Space Applications Centre is providing the mission’s S-band SAR. The U R Rao Satellite Centre is providing the spacecraft bus. The rocket is from Vikram Sarabhai Space Centre, launch services are through Satish Dhawan Space Centre, and satellite mission operations are by the ISRO Telemetry Tracking and Command Network. The National Remote Sensing Centre is responsible for S-band data reception, operational products generation, and dissemination.
    To learn more about NISAR, visit:
    https://nisar.jpl.nasa.gov/

    News Media Contacts
    Andrew Wang / Jane J. LeeJet Propulsion Laboratory, Pasadena, Calif.626-379-6874 / 626-491-1943andrew.wang@jpl.nasa.gov / jane.j.lee@jpl.nasa.gov
    2025-090

    MIL OSI USA News –

  • MIL-OSI Security: Missouri Man Sentenced to 30 Years in Prison for Producing Child Pornography

    Source: Office of United States Attorneys

    CAPE GIRARDEAU – U.S. District Judge Sarah E. Pitlyk on Monday sentenced a Carter County, Missouri man to 30 years for producing child pornography.

    Jurors in U.S. District Court in Cape Girardeau in December convicted Clinton Rongey, now 53, of one count of sexual exploitation of a minor. Evidence and testimony at trial showed that between February and November of 2023, Rongey produced more than 100 images containing child sexual abuse material featuring the victim, who was three and four years old at the time. Rongey engaged in a “pattern of activity,” doing so on multiple occasions, while he’d been entrusted with the care of the victim, according to a government sentencing memorandum.

    The case was investigated by the Carter County Sheriff’s Office and the FBI.  Assistant U.S. Attorneys Julie Hunter and Nathan Chapman prosecuted the case.

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

    MIL Security OSI –

  • MIL-OSI Economics: Verizon raises financial guidance for adjusted EBITDA, adjusted EPS and free cash flow after strong Q2 performance

    Source: Verizon

    Headline: Verizon raises financial guidance for adjusted EBITDA, adjusted EPS and free cash flow after strong Q2 performance

    Download News Release PDF

    Download 2Q Financials PDF

    Download Infographic PDF

    Download Non-GAAP Reconciliations PDF

     

    Key 2Q 2025 Highlights

    • Grew industry-leading wireless service revenue1 to $20.9 billion
    • Expanded high-quality customer base, adding more than 300,000 net additions across mobility and broadband
    • Increased Consumer postpaid phone gross additions, both sequentially and year-over-year
    • Continued to take broadband market share with both fixed wireless access and best in class Fios offerings
    • Deepened customer relationships with segmentation and innovative products and services like Best Value Guarantee, myPlan, myHome, My Biz Plan and the customer service transformation
    • J.D. Power, for the 35th time, recognized Verizon for best wireless network quality2, and RootMetrics’ 1H 2025 Awards named Verizon the nation’s best, fastest, and most reliable 5G network3

    NEW YORK – Verizon Communications Inc. (NYSE, Nasdaq: VZ), serving the most mobility and broadband customers in the U.S.4, reported strong financial performance and customer growth for second-quarter 2025. The company’s diversified wireless and broadband portfolio, tailored to all market segments, and its diverse revenue streams continue to drive financial success. Verizon also made key moves to attract and retain customers in the second quarter with its 3-year price lock and free phone guarantee, and the industry-leading launch of AI-powered innovations for personalized customer service and an enhanced customer experience. Verizon will continue to focus on its three priorities of growing wireless service revenue, expanding adjusted EBITDA5 and generating strong free cash flow5 as it heads into the second half of the year with momentum.

    “Verizon’s strong second-quarter financial performance reflects our high-quality, industry-leading customer base, our multiple growth paths, the success of our disciplined, segmented approach, and the inherent strength of our company,” said Verizon Chairman and CEO Hans Vestberg. “Our unmatched and award-winning network combined with our financial strength enables us to continually innovate and enhance our products and services, empowering how people live, work and play. With momentum and a clear path forward, we are raising our full-year guidance for adjusted EBITDA5, adjusted EPS5 and free cash flow5 as we move into the second half of the year and advance toward closing the Frontier acquisition.”

    2Q 2025 Highlights

    Consolidated: Strong financial performance with significant increases in net income, adjusted EBITDA5, earnings per share (EPS) and cash flow

    • EPS of $1.18 in second-quarter 2025 compared to EPS of $1.09 in second-quarter 2024; adjusted EPS5, excluding special items, of $1.22 compared to $1.15 in second-quarter 2024.
    • Total operating revenue of $34.5 billion in second-quarter 2025, up 5.2 percent year-over-year.
    • Cash flow from operations totaled $16.8 billion in first-half of 2025, up from $16.6 billion in first-half of 2024. 
    • Free cash flow5 was $8.8 billion in first-half of 2025, up from $8.5 billion in first-half of 2024. 
    • Consolidated net income for second-quarter 2025 was $5.1 billion compared to $4.7 billion in second-quarter 2024. Consolidated adjusted EBITDA5 was $12.8 billion in second-quarter 2025 compared to $12.3 billion in second-quarter 2024.
    • Wireless service revenue1 in second-quarter 2025 was an industry-leading $20.9 billion, up 2.2 percent year-over-year.
    • Wireless equipment revenue of $6.3 billion in second-quarter 2025, up 25.2 percent year-over-year.
    • Verizon’s total unsecured debt as of the end of second-quarter 2025 was $119.4 billion, compared to $117.3 billion at the end of first-quarter 2025 and $125.3 billion at the end of second-quarter 2024. The company’s net unsecured debt5 at the end of second-quarter 2025 was $116.0 billion. At the end of second-quarter 2025, Verizon’s ratio of unsecured debt to consolidated net income (LTM) was 6.4 times and its net unsecured debt to consolidated adjusted EBITDA ratio5 was 2.3 times.

    Broadband: Verizon continued to take broadband market share by offering customers unparalleled choice and flexibility

    • Delivered 293,000 broadband net additions in second-quarter 2025.
    • Total fixed wireless access net additions of 278,000 in second-quarter 2025, growing the base to over 5.1 million fixed wireless access subscribers. The company is well-positioned to achieve the next milestone of 8 to 9 million fixed wireless access subscribers by 2028.
    • Total broadband connections grew to more than 12.9 million as of the end of second-quarter 2025, representing a 12.2 percent increase year-over-year.
    • Verizon is expanding its Fios footprint and remains on track to achieve 650,000 new passings in 2025. 

    Verizon Consumer: Customer engagement with offerings fueled a 6.9 percent year-over-year increase in Consumer revenue, which reached $26.6 billion in second-quarter 2025

    • Consumer wireless service revenue in second-quarter 2025 was $17.4 billion, up 2.3 percent year-over-year.
    • Consumer wireless retail postpaid churn was 1.12 percent in second-quarter 2025, and wireless retail postpaid phone churn was 0.90 percent.
    • Consumer wireless postpaid average revenue per account (ARPA) of $147.50 in second-quarter 2025, an increase of 2.3 percent year-over-year.
    • In second-quarter 2025, Consumer reported 51,000 wireless retail postpaid phone net losses compared to 109,000 postpaid phone net losses in second-quarter 2024.
    • In second-quarter 2025, Consumer reported 50,000 wireless retail core prepaid6 net additions compared to 12,000 net losses in second-quarter 2024.
    • In second-quarter 2025, Consumer operating income was $7.6 billion, an increase of 0.5 percent year-over-year, and segment operating income margin was 28.7 percent, compared to 30.5 percent in second-quarter 2024. Segment EBITDA5 in second-quarter 2025 was $11.2 billion, an increase of 2.1 percent year-over-year. These results were driven by improvements in Consumer wireless service revenue. Segment EBITDA margin5 in second-quarter 2025 was 42.1 percent compared to 44.1 percent in second-quarter 2024.

    Verizon Business: Strong execution increased operating income 27.6 percent year-over-year

    • Total Verizon Business revenue was $7.3 billion in second-quarter 2025, a decrease of 0.3 percent year-over-year.
    • Business wireless service revenue in second-quarter 2025 was $3.6 billion, an increase of 1.6 percent year-over-year.
    • Business reported 65,000 wireless retail postpaid net additions in second-quarter 2025. This result included 42,000 postpaid phone net additions.
    • Business wireless retail postpaid churn was 1.61 percent in second-quarter 2025, and wireless retail postpaid phone churn was 1.26 percent.
    • In second-quarter 2025, Verizon Business operating income was $638 million, an increase of 27.6 percent year-over-year, resulting in segment operating income margin of 8.8 percent, an increase from 6.8 percent in second-quarter 2024. Segment EBITDA5 in second-quarter 2025 was $1.7 billion, an increase of 5.8 percent year-over-year. Segment EBITDA margin5 in second-quarter 2025 was 22.9 percent, an increase from 21.6 percent in second-quarter 2024.

    Outlook and guidance

    The company does not provide a reconciliation for certain of the following adjusted (non-GAAP) forecasts because it cannot, without unreasonable effort, predict the special items that could arise, and the company is unable to address the probable significance of the unavailable information.

    Strong operational execution in the first half of 2025 coupled with favorable tax reform gives Verizon the confidence to provide the following updated guidance for the full year: 

    • Adjusted EBITDA5 growth of 2.5 percent to 3.5 percent.
    • Adjusted EPS5 growth of 1.0 percent to 3.0 percent.
    • Cash flow from operations of $37.0 billion to $39.0 billion.
    • Free cash flow5 of $19.5 billion to $20.5 billion.

    In addition, for 2025, Verizon continues to expect the following: 

    • Total wireless service revenue1 growth of 2.0 percent to 2.8 percent.
    • Capital expenditures of $17.5 billion to $18.5 billion.

    Our 2025 financial guidance does not reflect any assumptions regarding the pending acquisition of Frontier.

    1 Total wireless service revenue represents the sum of Consumer and Business segments. Reflects the reclassification of recurring device protection and insurance related plan revenues from other revenue into wireless service revenue in the first quarter of 2025. Where applicable, historical results have been recast to conform to the current period presentation.

    2 Verizon is #1 for Network Quality in 4 regions (tied in the Southwest and North Central regions). Verizon has also received the highest number of awards in network quality for the 35th time as compared to all other brands in the J.D. Power 2003-2025 Volume 1 and 2 U.S. Wireless Network Quality Performance Studies. Network Quality measures customers’ satisfaction with their network performance with wireless carriers. For J.D. Power 2025 award information, visit jdpower.com/awards for more details.

    3 Based on RootMetrics® US National RootScore® Report 1H2025. RootMetrics conducts rigorous, independent, and scientific testing to provide a comprehensive view of network performance. For more information on the RootMetrics methodology and results, visit rootmetrics.com.

    4 Measurement is focused on retail connections and excludes reseller activity. Industry leading claims are based on publicly reported customer information or consensus expectations if results are not yet reported.

    5 Non-GAAP financial measure. See the accompanying schedules and www.verizon.com/about/investors for reconciliations of non-GAAP financial measures cited in this document to most directly comparable financial measures under generally accepted accounting principles (GAAP).

    6 Represents total prepaid results excluding SafeLink brand. Includes both phone and non-phone net additions.

    Verizon Communications Inc. (NYSE, Nasdaq: VZ) powers and empowers how its millions of customers live, work and play, delivering on their demand for mobility, reliable network connectivity and security. Headquartered in New York City, serving countries worldwide and nearly all of the Fortune 500, Verizon generated revenues of $134.8 billion in 2024. Verizon’s world-class team never stops innovating to meet customers where they are today and equip them for the needs of tomorrow. For more, visit verizon.com or find a retail location at verizon.com/stores.

    Forward-looking statements

    In this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. The following important factors, along with those discussed in our filings with the Securities and Exchange Commission (the “SEC”), could affect future results and could cause those results to differ materially from those expressed in the forward-looking statements: the effects of competition in the markets in which we operate, including the inability to successfully respond to competitive factors such as prices, promotional incentives and evolving consumer preferences; failure to take advantage of, or respond to competitors’ use of, developments in technology, including artificial intelligence, and address changes in consumer demand; performance issues or delays in the deployment of our 5G network resulting in significant costs or a reduction in the anticipated benefits of the enhancement to our networks; the inability to implement our business strategy; adverse conditions in the U.S. and international economies, including inflation and changing interest rates in the markets in which we operate; changes to international trade and tariff policies and related economic and other impacts; cyberattacks impacting our networks or systems and any resulting financial or reputational impact; damage to our infrastructure or disruption of our operations from natural disasters, extreme weather conditions, acts of war, terrorist attacks or other hostile acts and any resulting financial or reputational impact; disruption of our key suppliers’ or vendors’ provisioning of products or services, including as a result of geopolitical factors, natural disasters or extreme weather conditions; material adverse changes in labor matters and any resulting financial or operational impact; damage to our reputation or brands; the impact of public health crises on our business, operations, employees and customers; changes in the regulatory environment in which we operate, including any increase in restrictions on our ability to operate our networks or businesses; allegations regarding the release of hazardous materials or pollutants into the environment from our, or our predecessors’, network assets and any related government investigations, regulatory developments, litigation, penalties and other liability, remediation and compliance costs, operational impacts or reputational damage; our high level of indebtedness; significant litigation and any resulting material expenses incurred in defending against lawsuits or paying awards or settlements; an adverse change in the ratings afforded our debt securities by nationally accredited ratings organizations or adverse conditions in the credit markets affecting the cost, including interest rates, and/or availability of further financing; significant increases in benefit plan costs or lower investment returns on plan assets; changes in tax laws or regulations, or in their interpretation, or challenges to our tax positions, resulting in additional tax expense or liabilities; changes in accounting assumptions that regulatory agencies, including the SEC, may require or that result from changes in the accounting rules or their application, which could result in an impact on earnings; and risks associated with mergers, acquisitions, divestitures and other strategic transactions, including our ability to consummate the proposed acquisition of Frontier Communications Parent, Inc. and obtain cost savings, synergies and other anticipated benefits within the expected time period or at all.

    MIL OSI Economics –