Category: Statistics

  • MIL-OSI USA: Congressman Al Green Introduces H.R. 2983 – SNAP SECURE Act of 2025 to Protect and Compensate Victims of Theft in Nutrition Assistance Program

    Source: United States House of Representatives – Congressman Al Green (TX-9)

    (Houston, TX)—On Thursday, April 24, 2025, Congressman Al Green responded to growing calls from the press and interested parties after announcing he had filed H.R. 2983 – the Original Supplemental Nutrition Assistance Program Safeguarding Eligible Clients Under Reimbursement Enforcement (SNAP SECURE) Act of 2025. This legislation aims to reinstate a program that would compensate victims of theft of Supplemental Nutrition Assistance Program benefits, among other purposes. A copy of the legislation is accessible by clicking here

    According to recent data, 32,322 reports of SNAP benefits were stolen in Texas in the past two years. As of March, the Texas Health and Human Services SNAP Statistics page reports that over 3.5 million Texans were eligible for these benefits, amounting to more than $615 million loaded onto Lone Star cards. This theft not only harms affected families but also deepens food insecurity for children, seniors, and low-income communities who rely on these essential resources for nutritious meals.

    Congressman Al Green stated, “I intend to turn this legislation into a modified amendment to the next appropriations bill. If accepted, this legislation would ensure that those who have had their SNAP benefits stolen will be able to feed themselves and their families. Once the amended legislation is available, we will circulate it for cosponsors.”

    MIL OSI USA News

  • MIL-OSI: Penns Woods Bancorp, Inc. Reports First Quarter 2025 Earnings

    Source: GlobeNewswire (MIL-OSI)

    WILLIAMSPORT, Pa., April 25, 2025 (GLOBE NEWSWIRE) — Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

    Penns Woods Bancorp, Inc. achieved net income of $7.4 million for the three months ended March 31, 2025, resulting in basic earnings per share of $0.97 and diluted earnings per share of $0.95.

    Highlights

    • Net income, as reported under generally accepted accounting principles (GAAP), for the three months ended March 31, 2025 was $7.4 million, compared $3.8 million for the same period of 2024. Results for the three months ended March 31, 2025 compared to 2024 were impacted by an increase in net interest income of $2.4 million, as the net interest margin expanded. The three month period ended March 31, 2025 has been impacted by after-tax merger related expenses of $948,000 resulting from the announced acquisition of the company by Northwest Bancshares, Inc. The disposal of assets related to two former branch properties resulted in a one time after-tax loss of $261,000 for the three month period ended March 31, 2024.
    • The allowance for credit losses was impacted for the three months ended March 31, 2025 by a negative provision for credit losses of $3.0 million, compared to a provision for credit losses of $138,000 for the 2024 period. The recognition of a negative provision for credit losses for the 2025 period was due primarily to a recovery on a commercial loan of $1.3 million. The recovery, coupled with a decline in the historical loss rates over the look back period, reduced the probability of default and loss given default applied to the loan portfolio when determining the level of the allowance for credit losses.
    • Basic and diluted earnings per share for the three months ended March 31, 2025 were $0.97 and $0.95, respectively. This compares to basic and diluted earnings per share of $0.51 for the three month period ended March 31, 2024.
    • Annualized return on average assets was 1.31% for the three months ended March 31, 2025, compared to 0.69% for the corresponding period of 2024.
    • Annualized return on average equity was 14.76% for the three months ended March 31, 2025, compared to 8.03% for the corresponding period of 2024.

    Net Income

    Net income from core operations (“core earnings”), which is a non-GAAP measure of net income excluding net securities gains or losses and merger expenses, was $8.1 million for the three months ended March 31, 2025 compared to $3.8 million for the same period of 2024. Core earnings per share (non-GAAP) for the three months ended March 31, 2025 were basic $1.06 and diluted $1.04. Basic and diluted core earnings per share for the same period of 2024 were $0.51. Annualized core return on average assets and core return on average equity (non-GAAP) were 1.43% and 16.15%, respectively, for the three months ended March 31, 2025, compared to 0.69% and 8.09% for the corresponding period of 2024. A reconciliation of the non-GAAP financial measures of core earnings, core return on assets, core return on equity, core earnings per share and tangible book value per share to the comparable GAAP financial measures is included at the end of this press release.

    Net Interest Margin

    The net interest margin for the three months ended March 31, 2025 was 3.13% compared to 2.69% for the corresponding period of 2024. The increase in the net interest margin for the three month period was driven by an increase in the rate collected on interest-earning assets of 38 basis points (“bps”). The overall market conditions over the periods resulted in increases to the yield on the earnings asset portfolio and a decrease in the rate paid on interest-bearing deposits. Driving the increase in the yield and interest income on the earning assets portfolio was the repricing of legacy assets, portfolio growth, and the recognition of $223,000 in interest from a recovery on a commercial loan. The average loan portfolio balance increased $41.8 million for the three month period ended March 31, 2025 compared to the same period of 2024 as the average yield on the portfolio increased 40 bps, resulting in an increase in taxable equivalent interest income of $2.2 million for the period. The three month period ended March 31, 2025 was impacted by an increase of 30 bps in the yield earned on the securities portfolio as legacy securities matured, which offset the impact of a decrease in average securities balance of $15.0 million. Short-term borrowings decreased leading to a decrease of $949,000 in expense for the three month period ended March 31, 2025 compared to the same period of 2024. The rate paid on interest-bearing deposits increased 4 bps, or $781,000, in expense for the three month period ended March 31, 2025 compared to the corresponding period of 2024 due to the rate environment, an increase in competition for deposits, increased utilization of brokered deposits, and a migration of deposit balances from core deposits to higher rate time deposits. The average balance of time deposits increased $99.9 million from the three month period ended March 31, 2024 to 2025 as the rate paid on the funds decreased 9 bps. In addition, brokered deposits have been utilized to assist with funding the loan portfolio growth and contributed to the increase in time deposit balances, while lowering the reliance on higher cost short-term borrowings.

    Assets

    Total assets increased to $2.3 billion at March 31, 2025, an increase of $42.1 million compared to March 31, 2024.  Net loans increased $43.3 million to $1.9 billion at March 31, 2025 compared to March 31, 2024, as continued emphasis was placed on commercial loan growth and indirect auto lending. The investment portfolio decreased $14.3 million from March 31, 2024 to March 31, 2025 as the portfolio cash flow is being utilized to fund loan growth. Short-term and long-term borrowings decreased $28.3 million and $47.2 million, respectively, from March 31, 2024 to March 31, 2025 as deposit growth allowed for a reduction in total borrowings.

    Non-performing Loans

    The ratio of non-performing loans to total loans ratio increased to 0.53% at March 31, 2025 from 0.43% at March 31, 2024, as non-performing loans increased to $10.0 million at March 31, 2025 from $8.0 million at March 31, 2024. The majority of non-performing loans involve loans that are either in a secured position and have sureties with a strong underlying financial position or have been classified as individually evaluated loans that have a specific allocation recorded within the allowance for credit losses. Net loan recoveries of $957,000 for the three months ended March 31, 2025, impacted the allowance for credit losses, which was 0.54% of total loans at March 31, 2025 compared to 0.62% at March 31, 2024. Exposure to non-owner occupied office space is minimal at $13.7 million at March 31, 2025 with none of these loans being delinquent.

    Deposits

    Deposits increased $105.4 million to $1.7 billion at March 31, 2025 compared to March 31, 2024. Noninterest-bearing deposits decreased $5.7 million to $465.8 million at March 31, 2025 compared to March 31, 2024.  Core deposits increased $3.6 million with growth in money market accounts offsetting a decline in savings and NOW accounts. Core deposit gathering efforts remained focused on increasing the utilization of electronic (internet and mobile) deposit banking by our customers. Core deposits have remained stable at $1.2 billion over the past five quarters. Interest-bearing deposits increased $111.1 million from March 31, 2024 to March 31, 2025 due to growth in the time deposit portfolio of $50.6 million as customers sought a higher rate of interest. Brokered deposit balances increased $51.2 million to $177.0 million at March 31, 2025 as this funding source was utilized to supplement funding loan portfolio growth, while reducing the need to draw upon available borrowing lines. A campaign to attract time deposits with a maturity of five to twenty-four months commenced during the latter part of 2022 and has continued throughout 2024 and 2025.

    Shareholders’ Equity

    Shareholders’ equity increased $18.5 million to $212.0 million at March 31, 2025 compared to March 31, 2024.  Accumulated other comprehensive loss of $3.5 million at March 31, 2025 decreased from a loss of $9.2 million at March 31, 2024 as a result of a decrease in net unrealized loss on available for sale securities to $2.8 million at March 31, 2025 from a net unrealized loss of $6.4 million at March 31, 2024, coupled with a decrease in loss of $2.0 million in the defined benefit plan obligation. The current level of shareholders’ equity equates to a book value per share of $27.85 at March 31, 2025 compared to $25.72 at March 31, 2024, and an equity to asset ratio of 9.41% at March 31, 2025 and 8.76% at March 31, 2024. Tangible book value per share (a non-GAAP measure) increased to $25.67 at March 31, 2025 compared to $23.50 at March 31, 2024. Dividends declared for the three months ended March 31, 2025 and 2024 were $0.32 per share.

    Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates sixteen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, Union, and Blair Counties, and Luzerne Bank, which operates eight branch offices providing financial services in Luzerne County, and United Insurance Solutions, LLC, which offers insurance products.  Investment and insurance products are offered through Jersey Shore State Bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.

    NOTE:  This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).  Management uses the non-GAAP measure of net income from core operations in its analysis of the company’s performance. This measure, as used by the Company, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature such as net securities gains and losses. Because these certain items and their impact on the Company’s performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company’s core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

    This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact.  The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; (v) the effects of health emergencies, including the spread of infectious diseases or pandemics; (vi) the effect of changes in the business cycle and downturns in the local, regional or national economies; or (vii) any potential adverse events or developments resulting from the merger agreement, dated December 16, 2024, between Penns Woods Bancorp, Inc. and Northwest Bancshares, Inc., including, without limitation, any event, change, or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement or the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or to successfully integrate the business and operations of Jersey Shore State Bank and Luzerne Bank with those of Northwest Savings Bank after closing.  For a list of other factors which could affect the Company’s results, see the Company’s filings with the Securities and Exchange Commission, including “Item 1A.  Risk Factors,” set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

    You should not place undue reliance on any forward-looking statements.  These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise.  The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

    Previous press releases and additional information can be obtained from the Company’s website at www.pwod.com.

    Contact: Richard A. Grafmyre, Chief Executive Officer
      110 Reynolds Street
      Williamsport, PA 17702
      570-322-1111 e-mail: pwod@pwod.com
    PENNS WOODS BANCORP, INC.
    CONSOLIDATED BALANCE SHEET
    (UNAUDITED)
     
        March 31,
    (In Thousands, Except Share and Per Share Data)     2025       2024     % Change
    ASSETS:            
    Noninterest-bearing cash   $ 26,604     $ 23,488     13.27 %
    Interest-bearing balances in other financial institutions     10,841       9,055     19.72 %
    Total cash and cash equivalents     37,445       32,543     15.06 %
                 
    Investment debt securities, available for sale, at fair value     175,721       187,245     (6.15 )%
    Investment equity securities, at fair value     1,128       1,112     1.44 %
    Restricted investment in bank stock     20,613       23,420     (11.99 )%
    Loans held for sale     2,583       3,360     (23.13 )%
    Loans     1,897,376       1,855,347     2.27 %
    Allowance for credit losses     (10,236 )     (11,542 )   (11.32 )%
    Loans, net     1,887,140       1,843,805     2.35 %
    Premises and equipment, net     27,441       28,970     (5.28 )%
    Accrued interest receivable     10,871       11,344     (4.17 )%
    Bank-owned life insurance     45,982       32,853     39.96 %
    Investment in limited partnerships     6,466       7,515     (13.96 )%
    Goodwill     16,450       16,450     %
    Intangibles     82       184     (55.43 )%
    Operating lease right of use asset     2,761       2,922     (5.51 )%
    Deferred tax asset     2,067       4,546     (54.53 )%
    Other assets     15,485       13,847     11.83 %
    TOTAL ASSETS   $ 2,252,235     $ 2,210,116     1.91 %
                 
    LIABILITIES:            
    Interest-bearing deposits   $ 1,258,188     $ 1,147,111     9.68 %
    Noninterest-bearing deposits     465,766       471,451     (1.21 )%
    Total deposits     1,723,954       1,618,562     6.51 %
                 
    Short-term borrowings     82,910       111,208     (25.45 )%
    Long-term borrowings     214,542       261,770     (18.04 )%
    Accrued interest payable     3,908       4,174     (6.37 )%
    Operating lease liability     2,841       2,987     (4.89 )%
    Other liabilities     12,057       17,898     (32.63 )%
    TOTAL LIABILITIES     2,040,212       2,016,599     1.17 %
                 
    SHAREHOLDERS’ EQUITY:            
    Preferred stock, no par value, 3,000,000 shares authorized; no shares issued               n/a
    Common stock, par value $5.55, 22,500,000 shares authorized; 8,124,439 and 8,035,597 shares issued; 7,614,214 and 7,525,372 shares outstanding     45,134       44,641     1.10 %
    Additional paid-in capital     62,931       62,215     1.15 %
    Retained earnings     120,261       108,642     10.69 %
    Accumulated other comprehensive loss:            
    Net unrealized loss on available for sale securities     (2,762 )     (6,425 )   57.01 %
    Defined benefit plan     (726 )     (2,741 )   73.51 %
    Treasury stock at cost, 510,225 shares     (12,815 )     (12,815 )   %
    TOTAL SHAREHOLDERS’ EQUITY     212,023       193,517     9.56 %
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 2,252,235     $ 2,210,116     1.91 %
    PENNS WOODS BANCORP, INC.
    CONSOLIDATED STATEMENT OF INCOME
    (UNAUDITED)
     
        Three Months Ended March 31,
    (In Thousands, Except Share and Per Share Data)     2025       2024     % Change
    INTEREST AND DIVIDEND INCOME:            
    Loans including fees   $ 26,014     $ 23,860     9.03 %
    Investment securities:            
    Taxable     1,723       1,594     8.09 %
    Tax-exempt     60       97     (38.14 )%
    Dividend and other interest income     581       679     (14.43 )%
    TOTAL INTEREST AND DIVIDEND INCOME     28,378       26,230     8.19 %
                 
    INTEREST EXPENSE:            
    Deposits     8,744       7,963     9.81 %
    Short-term borrowings     1,056       2,005     (47.33 )%
    Long-term borrowings     2,438       2,516     (3.10 )%
    TOTAL INTEREST EXPENSE     12,238       12,484     (1.97 )%
                 
    NET INTEREST INCOME     16,140       13,746     17.42 %
                 
    (RECOVERY) PROVISION FOR CREDIT LOSSES     (2,969 )     138     (2,251.45 )%
                 
    NET INTEREST INCOME AFTER (RECOVERY) PROVISION OF CREDIT LOSSES     19,109       13,608     40.42 %
                 
    NON-INTEREST INCOME:            
    Service charges     483       515     (6.21 )%
    Net debt securities gains (losses), available for sale     305       (23 )   1,426.09 %
    Net equity securities gains (losses)     17       (10 )   270.00 %
    Bank-owned life insurance     301       463     (34.99 )%
    Gain on sale of loans     408       305     33.77 %
    Insurance commissions     152       153     (0.65 )%
    Brokerage commissions     167       186     (10.22 )%
    Loan broker income     252       222     13.51 %
    Debit card income     308       329     (6.38 )%
    Other     175       322     (45.65 )%
    TOTAL NON-INTEREST INCOME     2,568       2,462     4.31 %
                 
    NON-INTEREST EXPENSE:            
    Salaries and employee benefits     6,483       6,422     0.95 %
    Occupancy     874       905     (3.43 )%
    Furniture and equipment     997       939     6.18 %
    Software amortization     419       190     120.53 %
    Pennsylvania shares tax     413       320     29.06 %
    Professional fees     505       552     (8.51 )%
    Federal Deposit Insurance Corporation deposit insurance     397       359     10.58 %
    Marketing     47       71     (33.80 )%
    Intangible amortization     25       26     (3.85 )%
    Merger expense     1,093           n/a
    Other     1,341       1,839     (27.08 )%
    TOTAL NON-INTEREST EXPENSE     12,594       11,623     8.35 %
    INCOME BEFORE INCOME TAX PROVISION     9,083       4,447     104.25 %
    INCOME TAX PROVISION     1,716       639     168.54 %
    NET INCOME AVAILABLE TO COMMON SHAREHOLDERS’   $ 7,367     $ 3,808     93.46 %
    EARNINGS PER SHARE – BASIC   $ 0.97     $ 0.51     90.20 %
    EARNINGS PER SHARE – DILUTED   $ 0.95     $ 0.51     86.27 %
    WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC     7,589,592       7,512,520     1.03 %
    WEIGHTED AVERAGE SHARES OUTSTANDING – DILUTED     7,728,688       7,512,520     2.88 %
    PENNS WOODS BANCORP, INC.
    AVERAGE BALANCES AND INTEREST RATES 
    (UNAUDITED)
     
        Three Months Ended
        March 31, 2025   March 31, 2024
    (Dollars in Thousands)   Average 
    Balance (1)
      Interest   Average 
    Rate
      Average 
    Balance (1)
      Interest   Average 
    Rate
    ASSETS:                        
    Tax-exempt loans (3)   $ 68,615   $ 556   3.28 %   $ 69,349   $ 463   2.69 %
    All other loans     1,824,502     25,575   5.68 %     1,781,962     23,494   5.30 %
    Total loans (2)     1,893,117     26,131   5.60 %     1,851,311     23,957   5.20 %
                             
    Taxable securities     191,040     2,188   4.64 %     200,275     2,144   4.35 %
    Tax-exempt securities (3)     10,751     76   2.87 %     16,529     123   3.03 %
    Total securities     201,791     2,264   4.55 %     216,804     2,267   4.25 %
                             
    Interest-bearing balances in other financial institutions     14,699     116   3.20 %     10,199     129   5.09 %
                             
    Total interest-earning assets     2,109,607     28,511   5.48 %     2,078,314     26,353   5.10 %
                             
    Other assets     138,990             130,958        
                             
    TOTAL ASSETS   $ 2,248,597           $ 2,209,272        
                             
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                        
    Savings   $ 209,025     234   0.45 %   $ 218,722     268   0.49 %
    Super Now deposits     208,537     904   1.76 %     215,870     1,084   2.02 %
    Money market deposits     317,306     2,468   3.15 %     292,707     2,359   3.24 %
    Time deposits     507,085     5,138   4.11 %     407,169     4,252   4.20 %
    Total interest-bearing deposits     1,241,953     8,744   2.86 %     1,134,468     7,963   2.82 %
                             
    Short-term borrowings     95,339     1,056   4.49 %     144,350     2,005   5.59 %
    Long-term borrowings     230,682     2,438   4.29 %     259,697     2,516   3.90 %
    Total borrowings     326,021     3,494   4.35 %     404,047     4,521   4.50 %
                             
    Total interest-bearing liabilities     1,567,974     12,238   3.17 %     1,538,515     12,484   3.26 %
                             
    Demand deposits     449,384             451,877        
    Other liabilities     31,524             29,260        
    Shareholders’ equity     199,715             189,620        
                             
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   $ 2,248,597           $ 2,209,272        
    Interest rate spread (3)           2.31 %           1.84 %
    Net interest income/margin (3)       $ 16,273   3.13 %       $ 13,869   2.69 %
    1. Information on this table has been calculated using average daily balance sheets to obtain average balances.
    2. Non-accrual loans have been included with loans for the purpose of analyzing net interest earnings.
    3. Income and rates on fully taxable equivalent basis include an adjustment for the difference between annual income from tax-exempt obligations and the taxable equivalent of such income at the standard tax rate of 21%
      Three Months Ended March 31,
        2025     2024
    Total interest income $ 28,378   $ 26,230
    Total interest expense   12,238     12,484
    Net interest income (GAAP)   16,140     13,746
    Tax equivalent adjustment   133     123
    Net interest income (fully taxable equivalent) (non-GAAP) $ 16,273   $ 13,869
    (Dollars in Thousands, Except Per Share Data, Unaudited)   Quarter Ended
        3/31/2025   12/31/2024   9/30/2024   6/30/2024   3/31/2024
    Operating Data                    
    Net income   $ 7,367     $ 3,741     $ 4,801     $ 5,390     $ 3,808  
    Net interest income     16,140       15,563       15,056       14,515       13,746  
    (Recovery) provision for credit losses     (2,969 )     420       740       (1,177 )     138  
    Net security gains (losses)     322       (44 )     36       (19 )     (33 )
    Non-interest income, excluding net security gains (losses)     2,246       2,754       2,385       2,044       2,495  
    Non-interest expense     12,594       12,980       10,884       10,996       11,623  
                         
    Performance Statistics                    
    Net interest margin     3.13 %     2.98 %     2.88 %     2.83 %     2.69 %
    Annualized cost of total deposits     2.07 %     2.22 %     2.27 %     2.14 %     2.01 %
    Annualized non-interest income to average assets     0.46 %     0.48 %     0.43 %     0.37 %     0.45 %
    Annualized non-interest expense to average assets     2.24 %     2.32 %     1.95 %     1.98 %     2.10 %
    Annualized return on average assets     1.31 %     0.67 %     0.86 %     0.97 %     0.69 %
    Annualized return on average equity     14.76 %     7.28 %     9.60 %     11.12 %     8.03 %
    Annualized net loan (recoveries) charge-offs to average loans   (0.20 )%     0.05 %     0.07 %   (0.09 )%     0.08 %
    Net (recoveries) charge-offs     (957 )     228       328       (396 )     380  
    Efficiency ratio     68.36 %     70.73 %     62.26 %     66.25 %     71.41 %
                         
    Per Share Data                    
    Basic earnings per share   $ 0.97     $ 0.50     $ 0.64     $ 0.72     $ 0.51  
    Diluted earnings per share     0.95       0.49       0.64       0.72       0.51  
    Dividend declared per share     0.32       0.32       0.32       0.32       0.32  
    Book value     27.85       27.16       26.96       26.13       25.72  
    Tangible book value (Non-GAAP)     25.67       24.97       24.77       23.93       23.50  
    Common stock price:                    
    High     31.90       34.06       23.98       21.08       22.64  
    Low     27.61       23.74       19.29       17.17       18.44  
    Close     27.91       30.39       23.79       20.55       19.41  
    Weighted average common shares:                    
    Basic     7,590       7,555       7,544       7,529       7,513  
    Fully Diluted     7,729       7,693       7,544       7,529       7,513  
    End-of-period common shares:                    
    Issued     8,124       8,067       8,065       8,052       8,036  
    Treasury     (510 )     (510 )     (510 )     (510 )     (510 )
    (Dollars in Thousands, Unaudited)   Quarter Ended
        3/31/2025   12/31/2024   9/30/2024   6/30/2024   3/31/2024
    Financial Condition Data:                    
    General                    
    Total assets   $ 2,252,235     $ 2,232,338     $ 2,259,250     $ 2,234,617     $ 2,210,116  
    Loans, net     1,887,140       1,865,230       1,863,586       1,855,054       1,843,805  
    Goodwill     16,450       16,450       16,450       16,450       16,450  
    Intangibles     82       107       133       158       184  
    Total deposits     1,723,954       1,706,081       1,700,321       1,648,093       1,618,562  
    Noninterest-bearing     465,766       456,936       452,922       461,092       471,451  
    Savings     211,136       208,340       211,560       218,354       220,932  
    NOW     203,191       212,687       218,279       209,906       208,073  
    Money Market     323,869       308,977       321,614       320,101       299,916  
    Time Deposits     342,983       340,844       328,294       310,187       292,372  
    Brokered Deposits     177,009       178,297       167,652       128,453       125,818  
    Total interest-bearing deposits     1,258,188       1,249,145       1,247,399       1,187,001       1,147,111  
                         
    Core deposits*     1,203,962       1,186,940       1,204,375       1,209,453       1,200,372  
    Shareholders’ equity     212,023       205,231       203,694       197,087       193,517  
                         
    Asset Quality                    
    Non-performing loans   $ 9,987     $ 8,904     $ 7,940     $ 6,784     $ 7,958  
    Non-performing loans to total assets     0.44 %     0.40 %     0.35 %     0.30 %     0.36 %
    Allowance for credit losses on loans     10,236       11,848       11,588       11,234       11,542  
    Allowance for credit losses on loans to total loans     0.54 %     0.63 %     0.62 %     0.60 %     0.62 %
    Allowance for credit losses on loans to non-performing loans     102.49 %     133.06 %     145.94 %     165.60 %     145.04 %
    Non-performing loans to total loans     0.53 %     0.47 %     0.42 %     0.36 %     0.43 %
                         
    Capitalization                    
    Shareholders’ equity to total assets     9.41 %     9.19 %     9.02 %     8.82 %     8.76 %
                                             
    * Core deposits are defined as total deposits less time deposits and brokered deposits.
    Reconciliation of GAAP and Non-GAAP Financial Measures
    (UNAUDITED)
     
        Three Months Ended March 31,
    (Dollars in Thousands, Except Per Share Data, Unaudited)     2025       2024  
    GAAP net income   $ 7,367     $ 3,808  
    Net securities (gains) losses, net of tax     (254 )     26  
    Merger expenses, net of tax     948        
    Non-GAAP core earnings   $ 8,061     $ 3,834  
             
        Three Months Ended March 31,
          2025       2024  
    Return on average assets (ROA)     1.31 %     0.69 %
    Net securities (gains) losses, net of tax   (0.04 )%     %
    Merger expenses, net of tax     0.16 %     %
    Non-GAAP core ROA     1.43 %     0.69 %
             
        Three Months Ended March 31,
          2025       2024  
    Return on average equity (ROE)     14.76 %     8.03 %
    Net securities (gains) losses, net of tax   (0.51 )%     0.06 %
    Merger expenses, net of tax     1.90 %     %
    Non-GAAP core ROE     16.15 %     8.09 %
             
        Three Months Ended March 31,
          2025       2024  
    Basic earnings per share (EPS)   $ 0.97     $ 0.51  
    Net securities (gains) losses, net of tax     (0.03 )      
    Merger expenses, net of tax     0.12        
    Non-GAAP basic core EPS   $ 1.06     $ 0.51  
         
        Three Months Ended March 31,
          2025       2024  
    Diluted EPS   $ 0.95     $ 0.51  
    Net securities (gains) losses, net of tax     (0.03 )      
    Merger expenses, net of tax     0.12        
    Non-GAAP diluted core EPS   $ 1.04     $ 0.51  
    (Dollars in Thousands, Except Share and Per Share Data, Unaudited)   Quarter Ended
        3/31/2025   12/31/2024   9/30/2024   6/30/2024   3/31/2024
    Total shareholders’ equity   $ 212,023     $ 205,231     $ 203,694     $ 197,087     $ 193,517  
    Goodwill     (16,450 )     (16,450 )     (16,450 )     (16,450 )     (16,450 )
    Intangibles     (82 )     (107 )     (133 )     (158 )     (184 )
    Tangible shareholders’ equity   $ 195,491     $ 188,674     $ 187,111     $ 180,479     $ 176,883  
                         
    Shares outstanding     7,614,214       7,556,743       7,554,488       7,541,474       7,525,372  
                         
    Book value per share   $ 27.85     $ 27.16     $ 26.96     $ 26.13     $ 25.72  
    Tangible book value per share (Non-GAAP)   $ 25.67     $ 24.97     $ 24.77     $ 23.93     $ 23.50  

    The MIL Network

  • MIL-OSI Economics: ICC Pulse Survey 2025: Business reactions to new U.S. tariffs

    Source: International Chamber of Commerce

    Headline: ICC Pulse Survey 2025: Business reactions to new U.S. tariffs

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    MIL OSI Economics

  • MIL-OSI Submissions: Household living-costs price indexes: March 2025 quarter – cancelled

    Household living-costs price indexes: March 2025 quarter – cancelled

    23 April 2025

    The Household living-costs price indexes: March 2025 quarter (HLPI) has been cancelled and will not be released on 1 May 2025.  

    This is due to a range of technical data processing challenges in updating and applying the weights for the HLPIs, following the Consumers price index review: 2024.

    We are working with our customers to understand the impacts of this and to find a solution, and we will provide a further update.

    New weights from the Consumers price index review: 2024 have been successfully implemented in the selected price indexes and the CPI. However, updating and applying these to the HLPI has been much more complicated.

    Cancelling the March 2025 edition of Household living-costs price indexes does not affect the quarterly CPI. Our economic data remains reliable, fit-for-purpose, and within international best practice. 

    The HLPI is used as an input for one of the measures of child poverty statistics. A key part of our solution will be to ensure we deliver on our obligations to measure child poverty.    

    We apologise for any inconvenience this causes.  

    Ends

    For media enquiries contact: Yvette Preece, Wellington, 021 285 9191, media@stats.govt.nz

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    MIL OSI

  • MIL-OSI New Zealand: Household living-costs price indexes: March 2025 quarter – cancelled

    Household living-costs price indexes: March 2025 quarter – cancelled

    23 April 2025

    The Household living-costs price indexes: March 2025 quarter (HLPI) has been cancelled and will not be released on 1 May 2025.  

    This is due to a range of technical data processing challenges in updating and applying the weights for the HLPIs, following the Consumers price index review: 2024.

    We are working with our customers to understand the impacts of this and to find a solution, and we will provide a further update.

    New weights from the Consumers price index review: 2024 have been successfully implemented in the selected price indexes and the CPI. However, updating and applying these to the HLPI has been much more complicated.

    Cancelling the March 2025 edition of Household living-costs price indexes does not affect the quarterly CPI. Our economic data remains reliable, fit-for-purpose, and within international best practice. 

    The HLPI is used as an input for one of the measures of child poverty statistics. A key part of our solution will be to ensure we deliver on our obligations to measure child poverty.    

    We apologise for any inconvenience this causes.  

    Ends

    For media enquiries contact: Yvette Preece, Wellington, 021 285 9191, media@stats.govt.nz

    The Government Statistician authorises all statistics and data we publish.

    If you wish to change your details or unsubscribe please email subscriptions@stats.govt.nz.

    Thank you for using the Stats NZ subscription service.

    Publishing team
    +64 4 931 4600
    publishing@stats.govt.nz
    www.stats.govt.nz

    More information is available on the Stats NZ website at www.stats.govt.nz

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    MIL OSI New Zealand News

  • MIL-OSI United Kingdom: Planning Inspectorate Performance update – April 2025

    Source: United Kingdom – Executive Government & Departments

    News story

    Planning Inspectorate Performance update – April 2025

    Performance and other updates following the publication of our latest official statistics release.

    Every three months, we publish the latest official statistics on appeals performance, which represent the greatest volume (in terms of number of cases) of the work of the Planning Inspectorate. 

    We also update the appeals handling times data to give customers the latest information on the average time it takes to receive a decision and provide an update on our other main casework areas. 

    The latest set of performance statistics shows quicker decision times in some areas of casework and demonstrates the positive impact of work to reduce the number of open cases we carry. 

    Appeals 

    In each month of the last quarter (Jan, Feb and March 2025) we have closed more cases than we have received. We now have 12,086 open cases down from 13,293 a year ago (March 2024). 

    We have made 18,346 appeal decisions in the last 12 months up to the end of March 2025. In March we made 1,736 decisions, more than 200 more than the 12-month average of 1,529.  

    Our appeal cases are dealt with in one of three ways: written representations, hearings, or inquiries. Ministerial performance measures include an expectation to reduce average decision times over time and make our decision speeds more consistent. All our decision times are measured from the day we receive a valid appeal through to the day we issue a decision. This is the same approach as Local Planning Authorities. 

    We continue to focus on reducing our overall open caseload of appeals and making our decision times more consistent, especially planning and enforcement appeals decided after an exchange of written evidence. 

    Median decision times 

    The median decision time for cases decided over the past 12 months was 27 weeks. 

    At the end of March decision times for planning cases decided by written representations and hearing were both below the 12-month average, as were enforcement cases decided by inquiry. 

    12 months to March 2025 median decision time January 2025 median decision time February 2025 median decision time March 2025 median decision time
    Planning appeals by written representations 26 weeks 26 weeks 26 weeks 24 weeks
    Planning appeals by hearing 24 weeks 26 weeks 24 weeks 23 weeks
    Planning appeals by inquiry 27 weeks 24 weeks 25 weeks 27 weeks
    Enforcement appeals by written representations 55 weeks 71 weeks 63 weeks 58 weeks
    Enforcement appeals by hearing 57 weeks 36 weeks 47 weeks 61 weeks
    Enforcement appeals by inquiry 47 weeks 62 weeks 51 weeks 27 weeks

    National Infrastructure 

    We have a high number of Nationally Significant Infrastructure Projects (NSIPs) at various stages, but we continue to meet all statutory deadlines: 

    • 61 where we are providing advice before submission. 
    • 15 submitted and at acceptance, pre-examination, or examination. 
    •  8 where we are preparing our recommendation. 
    •  6 where the relevant Secretary of State is considering our recommendation. 

    Local Plans 

    There are currently 61 live Local Plan examinations in progress. 

    At the start of each month on LinkedIn we publish a list of the upcoming Local Plan hearings and a map of the NSIP applications currently in progress around the country.

    Updates to this page

    Published 25 April 2025

    MIL OSI United Kingdom

  • MIL-OSI Asia-Pac: Business expectations for the second quarter of 2025

    Source: Hong Kong Government special administrative region

         The Census and Statistics Department (C&SD) released today (April 25) the results of the Quarterly Business Tendency Survey for the second quarter (Q2) of 2025.
     
    Business Situation
     
         For all surveyed sectors taken together, the proportion of respondents expecting their business situation to be better (9%) in Q2 2025 over the preceding quarter is lower than that expecting it to be worse (18%). 
      
         When compared with the results of the Q1 2025 survey round, the proportion of respondents expecting a better business situation in Q2 2025 is 9%, broadly the same as the corresponding proportion in Q1 2025. On the other hand, the proportion of respondents expecting a worse business situation had slightly decreased from 19% in Q1 2025 to 18% in Q2 2025.
     
         Analysed by sector, respondents in most of the surveyed sectors expect their business situation to decrease on balance in Q2 2025 as compared with Q1 2025. In particular, significantly more respondents in the accommodation and food services and transportation, storage and courier services sectors expect their business situation to be worse in Q2 2025 as compared with Q1 2025.
     
         The results of the survey should be interpreted with care. In this type of survey on expectations, the views collected in the survey are affected by the events in the community occurring around the time of enumeration, and it is difficult to establish precisely the extent to which respondents’ perception of the future accords with the underlying trends. The enumeration period for this survey round was from March 4, 2025 to April 10, 2025. 
     
    Volume of Business / Output
     
         Respondents in all of the surveyed sectors expect their volume of business/ output to decrease on balance or remain broadly unchanged in Q2 2025 as compared with Q1 2025. In particular, significantly more respondents in the accommodation and food services sector expect their volume of business to decrease in Q2 2025 over Q1 2025.
     
    Employment
     
         Respondents in most of the surveyed sectors expect their employment to decrease on balance or remain broadly unchanged in Q2 2025 as compared with Q1 2025. In particular, more respondents in the accommodation and food services and construction sectors expect their employment to decrease in Q2 2025 over Q1 2025. In the real estate sector, however, more respondents expect their employment to increase, as compared to those expecting it to decrease.
     
    Selling Price/ Service Charge
     
         Respondents in most of the surveyed sectors expect their selling prices/ service charges to remain broadly unchanged in Q2 2025 as compared with Q1 2025. However, significantly more respondents in the construction and accommodation and food services sectors expect their tender prices/ charges for services rendered/ prices of food provided to go down in Q2 2025 over Q1 2025.
     
    Commentary
     
         A Government spokesman said that according to the survey conducted earlier, the near-term business outlook and hiring appetite among large enterprises for the second quarter of 2025 were largely stable compared with expectations for the previous quarter.  
     
         The spokesman pointed out that the survey captured largely the views of enterprises before the abrupt escalation of trade tensions due to the significant increases in import tariffs by the US in early April. Looking forward, as the downside risk and uncertainties of the global economy have increased notably, business sentiment should be subject to pressure. The Government has been providing support to enterprises through various measures, and will monitor the situation closely. 
     
    Further Information
     
         The survey gathers views on short-term business performance from the senior management of about 570 prominent establishments in various sectors in Hong Kong with a view to providing a quick reference, with minimum time lag, for predicting the short-term future economic performance of the local economy.
     
         The survey covers 10 major sectors in Hong Kong, namely manufacturing; construction; import / export trade and wholesale; retail; accommodation and food services (mainly covering services rendered by hotels and restaurants); transportation, storage and courier services; information and communications; financing and insurance; real estate; and professional and business services sectors.
     
         Views collected in the survey refer only to those of respondents on their own establishments rather than those on the respective sectors they are engaged in, and are limited to the expected direction of quarter-to-quarter change (e.g. “up”, “same” or “down”) but not the magnitude of change. In collecting views on the quarter-to-quarter changes, if the variable in question is subject to seasonal variations, respondents are asked to provide the expected changes after excluding the normal seasonal variations.
     
         Survey results are generally presented as “net balance”, i.e. the difference between the percentage of respondents choosing “up” and that choosing “down”. The percentage distribution of respondents among various response categories (e.g. “up”, “same” and “down”) reflects how varied their business expectations are. The “net balance”, with its appropriate sign, indicates the direction of expected change in the variable concerned. A positive sign indicates a likely upward trend while a negative sign indicates a likely downward trend. However, the magnitude of the “net balance” reflects only the prevalence of optimism or pessimism, but not the magnitude of expected change, since information relating to such magnitude is not collected in the survey.
     
         Furthermore, owing to sample size constraint, care should be taken in interpreting survey results involving a small percentage (e.g. less than 10%) of respondents in individual sectors.
     
         Chart 1 shows the views on expected changes in business situation for the period Q2 2024 to Q2 2025.
     
         Table 1 shows the net balances of views on expectations in respect of different variables for Q2 2025.
     
         The survey results are published in greater detail in the “Report on Quarterly Business Tendency Survey, Q2 2025”. Users can browse and download the publication at the website of the C&SD (www.censtatd.gov.hk/en/EIndexbySubject.html?pcode=B1110008&scode=300).
      
         Users who have enquiries about the survey results may contact the Business Expectation Statistics Section of the C&SD (Tel: 3903 7263; E-mail: business-prospects@censtatd.gov.hk).

    MIL OSI Asia Pacific News

  • MIL-OSI United Kingdom: March 2025 Retail Prices Index published25 April 2025 ​​​​​Statistics Jersey have today published the March 2025 Retail Prices Index report. The All Items Retail Prices Index (RPI) is the main measure of inflation in Jersey. It measures the change from quarter… Read more

    Source: Channel Islands – Jersey

    25 April 2025

    ​​​​​Statistics Jersey have today published the March 2025 Retail Prices Index report.

    The All Items Retail Prices Index (RPI) is the main measure of inflation in Jersey. It measures the change from quarter to quarter in the price of the goods and services purchased by an average household in Jersey.

    The March report shows:

    • the All Items Retail Prices Index (RPI) for Jersey increased by 2.3% to stand at 237.1 (June 2000 = 100)
    • the increase in the RPI was less than that to December 2024 (2.5%); hence the annual rate of inflation decreased by 0.2 percentage points (pp) since last quarter
    • five groups contributed to the decrease in the annual rate of inflation, including the housing, tobacco and household services groups
    • prices in most groups increased and these increases were similar to or less than those over the 12 months to December 2024, which resulted in an overall downward contribution to the annual rate of inflation
    • leisure services which includes entertainment, sport and leisure fees and off-Island holidays, was the price group that made the largest contribution to the annual rate of inflation, contributing +0.6 pp to the rate
    • the increase in the RPI was 3.4 pp smaller than a year ago (5.7% in March 2024)
    • RPI(Y), which measures underlying inflation, increased by 3.4%, which was 0.4 pp higher than the December 2024 rate (up from 3.0%)
    • RPI(X) increased by 3.4%
    • RPI Pensioners increased by 3.3%
    • RPI Low Income increased by 3.4%
    • annual changes in RPI(X), RPI(Y) and RPI Pensioners were 0.2 to 0.4 pp higher than those in December 2024 and RPI Low Income was essentially unchanged from December 2024
    • the rate of inflation in Jersey as measured by the RPI, was 1.1 pp lower than the UK CPIH, which is the broadly comparable headline rate of inflation for the UK;

    ​Jersey Retail Prices Index March 2025

    MIL OSI United Kingdom

  • MIL-Evening Report: ER Report: A Roundup of Significant Articles on EveningReport.nz for April 25, 2025

    ER Report: Here is a summary of significant articles published on EveningReport.nz on April 25, 2025.

    Labor takes large leads in YouGov and Morgan polls as surge continues
    Source: The Conversation (Au and NZ) – By Adrian Beaumont, Election Analyst (Psephologist) at The Conversation; and Honorary Associate, School of Mathematics and Statistics, The University of Melbourne With just eight days until the May 3 federal election, and with in-person early voting well under way, Labor has taken a seven-point lead in a national

    Beating malaria: what can be done with shrinking funds and rising threats
    Source: The Conversation (Au and NZ) – By Taneshka Kruger, UP ISMC: Project Manager and Coordinator, University of Pretoria Healthcare in Africa faces a perfect storm: high rates of infectious diseases like malaria and HIV, a rise in non-communicable diseases, and dwindling foreign aid. In 2021, nearly half of the sub-Saharan African countries relied on

    Open letter to Fijians – ‘why is our country supporting Israel’s heinous crimes in Gaza?’
    Pacific Media Watch The Fijians for Palestine Solidarity Network today condemned the Fiji government’s failure to stand up for international law and justice over the Israeli war on Gaza in their weekly Black Thursday protest. “For the past 18 months, we have made repeated requests to our government to do the bare minimum and enforce

    Scares and stunts in the home stretch: election special podcast
    Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra Michelle Grattan and Amanda Dunn discuss the fourth week of the 2025 election campaign. While the death of Pope Francis interrupted campaigning for a while, the leaders had another debate on Tuesday night and the opposition (belatedly) put out its

    Grattan on Friday: Coalition’s campaign lacks good planning and enough elbow grease
    Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra Whatever the result on May 3, even people within the Liberals think they have run a very poor national campaign. Not just poor, but odd. Nothing makes the point more strongly than this week’s release of the opposition’s defence policy.

    Inside the elaborate farewell to Pope Francis
    Source: The Conversation (Au and NZ) – By Carole Cusack, Professor of Religious Studies, University of Sydney ➡️ View the full interactive version of this article here. Carole Cusack 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

    5 ways to tackle Australia’s backlog of asylum cases
    Source: The Conversation (Au and NZ) – By Daniel Ghezelbash, Professor and Director, Kaldor Centre for International Refugee Law, UNSW Law & Justice, UNSW Sydney People who apply for asylum in Australia face significant delays in having their claims processed. These delays undermine the integrity of the asylum system, erode public confidence and cause significant

    Preference deals can decide the outcome of a seat in an election – but not always
    Source: The Conversation (Au and NZ) – By Adrian Beaumont, Election Analyst (Psephologist) at The Conversation; and Honorary Associate, School of Mathematics and Statistics, The University of Melbourne Every election cycle the media becomes infatuated, even if temporarily, with preference deals between parties. The 2025 election is no exception, with many media reports about preference

    What is preferential voting and how does it work? Your guide to making your vote count
    Source: The Conversation (Au and NZ) – By Robert Hortle, Deputy Director, Tasmanian Policy Exchange, University of Tasmania For each Australian federal election, there are two different ways you get to vote. Whether you vote early, by post or on polling day on May 3, each eligible voter will be given two ballot papers: one

    Back to the fuel guzzlers? Coalition plans to end EV tax breaks would hobble the clean transport transition
    Source: The Conversation (Au and NZ) – By Anna Mortimore, Lecturer, Griffith Business School, Griffith University wedmoment.stock/Shutterstock If elected, the Coalition has pledged to end Labor’s substantial tax break for new zero- or low-emissions vehicles. This, combined with an earlier promise to roll back new fuel efficiency standards, would successfully slow the transition to hybrid

    Many experienced tradies don’t have formal qualifications. Could fast-tracked recognition ease the housing crisis?
    Source: The Conversation (Au and NZ) – By Pi-Shen Seet, Professor of Entrepreneurship and Innovation, Edith Cowan University Once again, housing affordability is at the forefront of an Australian federal election. Both major parties have put housing policies at the centre of their respective campaigns. But there are still concerns too little is being done

    This may be as good as it gets: NZ and Australia face a complicated puzzle when it comes to supermarket prices
    Source: The Conversation (Au and NZ) – By Richard Meade, Adjunct Associate Professor, Centre for Applied Energy Economics and Policy Research, Griffith University Daria Nipot/Shutterstock With ongoing cost of living pressures, the Australian and New Zealand supermarket sectors are attracting renewed political attention on both sides of the Tasman. Allegations of price gouging have become

    The phrase ‘fuzzy wuzzy angels’ is far from affectionate – it reflects 500 years of racism
    Source: The Conversation (Au and NZ) – By Erika K. Smith, Associate Lecturer, School of Social Sciences, Western Sydney University This article contains mention of racist terms in historical context. Every Anzac Day, Australians are presented with narratives that re-inscribe particular versions of our national story. One such narrative persistently claims “fuzzy wuzzy angel” was

    Why AUKUS remains the right strategy for the future defence of Australia
    Source: The Conversation (Au and NZ) – By Jennifer Parker, Adjunct Fellow, Naval Studies at UNSW Canberra, and Expert Associate, National Security College, Australian National University Australian strategic thinking has long struggled to move beyond a narrow view of defence that focuses solely on protecting our shores. However, in today’s world, our economy could be

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    Source: The Conversation (Au and NZ) – By T.J. Thomson, Senior Lecturer in Visual Communication & Digital Media, RMIT University As Australia begins voting in the federal election, we’re awash with political messages. While this of course includes the typical paid ads in newspapers and on TV (those ones with the infamously fast-paced “authorised by”

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    Source: The Conversation (Au and NZ) – By Natalie Peng, Lecturer in Accounting, The University of Queensland Shutterstock For Australians approaching retirement, recent market volatility may feel like more than just a bump in the road. Unlike younger investors, who have time on their side, retirees don’t have the luxury of waiting out downturns. A

    Provocative, progressive and fearless: why Beatrice Faust’s views still resonate in Australia
    Source: The Conversation (Au and NZ) – By Judith Brett, Emeritus Professor of Politics, La Trobe University Beatrice Faust is best remembered as the founder, early in 1972, of the Women’s Electoral Lobby (WEL). Women’s Liberation was already well under way. Betty Friedan had published The Feminine Mystique in 1962, arguing that many women found

    ER Report: A Roundup of Significant Articles on EveningReport.nz for April 24, 2025
    ER Report: Here is a summary of significant articles published on EveningReport.nz on April 24, 2025.

    MIL OSI AnalysisEveningReport.nz

  • MIL-Evening Report: Labor takes large leads in YouGov and Morgan polls as surge continues

    Source: The Conversation (Au and NZ) – By Adrian Beaumont, Election Analyst (Psephologist) at The Conversation; and Honorary Associate, School of Mathematics and Statistics, The University of Melbourne

    With just eight days until the May 3 federal election, and with in-person early voting well under way, Labor has taken a seven-point lead in a national YouGov poll and an 11-point lead in a Morgan poll. An exit poll of early voters is also encouraging for Labor.

    A national YouGov poll, conducted April 17–22 from a sample of 1,500, gave Labor a 53.5–46.5 lead, a 0.5-point gain for Labor since the April 11–15 YouGov poll. This is Labor’s biggest lead in YouGov this term.

    Primary votes were 33.5% Labor (up 0.5), 31% Coalition (down two), 14% Greens (up one), 10.5% One Nation (up 3.5), 2% Trumpet of Patriots (steady), 5% independents (down four) and 4% others (up one). In this poll, the Coalition has lost votes on its right to One Nation.

    Using 2022 election preference flows would give Labor about a 55–45 lead from these primary votes. YouGov is applying preference flows from its previous MRP poll that was conducted from late February to late March.

    However, recent polls that use respondent preferences suggest the gap in the Coalition’s favour between respondent and 2022 preference flows has dropped to nearly zero. This means YouGov’s current preference assumptions may be too pro-Coalition. The Poll Bludger expects another YouGov MRP poll this weekend.

    While the gap between Morgan and YouGov’s headline voting intentions is two points, Morgan is using respondent preferences for all their polls, while YouGov uses respondent preferences from its last MRP poll. By 2022 election flows, the gap is only 0.5 points.

    Here is the poll graph of Labor’s two-party vote in national polls. If YouGov and Morgan are right, Labor is likely headed for a landslide re-election. The only recent poll that has had the Coalition in a decent position was the April 14–16 Freshwater poll.

    Both the YouGov and Morgan polls were taken after candidate nominations were declared on April 11. Both are now using seat-specific candidate lists in their polls. Support for independents fell as many seats don’t have viable independent candidates.

    Anthony Albanese’s net approval in YouGov slid one point to -7, with 49% dissatisfied and 42% satisfied. Peter Dutton’s net approval slumped eight points to a record low in this poll of -18. Albanese led Dutton as better PM by 50–35 (48–38 previously).

    Labor takes double-digit lead in Morgan poll

    A national Morgan poll, conducted April 14–20 from a sample of 1,605, gave Labor a 55.5–44.5 lead by headline respondent preferences, a one-point gain for Labor since the April 7–13 Morgan poll.

    Primary votes were 34.5% Labor (up 2.5), 34% Coalition (up 0.5), 14.5% Greens (steady), 6% One Nation (steady), 0.5% Trumpet of Patriots (down 0.5), 7.5% independents (down 2.5) and 3% others (steady). By 2022 election flows, Labor led by 55.5–44.5, a one-point gain for Labor.

    By 48–34, voters thought Australia was headed in the wrong direction (48.5–34.5 previously). Morgan’s consumer confidence index increased 1.3 points to 85.5.

    Exit polls of early voting in 19 seats encouraging for Labor

    The News Corp tabloids on Thursday released results of exit polls of pre-poll voters from the first two days of in-person early voting (Tuesday and Wednesday). A total of 4,000 voters were surveyed across 19 seats (just over 200 per seat). The swings in these polls were compared against all votes in these seats in 2022, not just the early votes.

    In Australia, Labor does better on election day booths than in pre-poll voting booths. ABC election analyst Antony Green said Labor’s two-party vote was 2.8 points higher at election day booths compared with pre-poll votes in 2022.

    I also believe relatively few young people will vote very early based on US experience, so the demographic mix of these early votes will skew older and less Greens-friendly than the final early vote.

    Comparing these very early exit polls with the final vote from pre-poll centres in 2022, The Poll Bludger had Labor gaining primary vote swings in all seats that are likely to be Labor vs Coalition contests, while the Coalition was down except in Victoria. The Greens also dropped, but not in the Brisbane Greens-held seats.

    If these very early pre-poll votes skew older than the final pre-poll votes and these exit polls are representative of people who have already voted, the Coalition is in big trouble.

    Newspoll aggregate data from late March to mid-April

    The Australian on Tuesday released aggregate data for the four Newspolls conducted during the election campaign. These polls were conducted from late March to mid-April from an overall sample of 5,033.

    The Poll Bludger said Labor led by 52–48 in New South Wales, a two-point gain for Labor since the January to March Newspoll aggregate. Labor led by 53–47 in Victoria, a two-point gain for Labor. The Coalition led by 54–46 in Queensland, a three-point gain for Labor. Labor led by an unchanged 54–46 in Western Australia. Labor led by 55–45 in South Australia, a five-point gain for Labor.

    The Poll Bludger’s poll data has Labor leading with the university-educated by 55–45, a three-point gain for Labor. Among those with a TAFE/technical education, there was a 50–50 tie, a two-point gain for Labor. Among those without tertiary education, there was a 50–50 tie, a two-point gain for Labor.

    The Poll Bludger’s BludgerTrack now gives Labor a national 53.0–47.0 lead, a 0.9% swing to Labor since the 2022 election. In NSW, Labor leads by 53.4–46.6, a 2.0% swing to Labor. In Victoria, Labor leads by 52.8–47.2, a 2.0% swing to the Coalition. In Queensland, the Coalition leads by 52.5–47.5, a 1.5% swing to Labor. In WA, Labor leads by 57.6–42.4, a 2.6% swing to Labor. In SA, Labor leads by 56.8–43.2, a 2.8% swing to Labor.

    DemosAU poll of Greens-held Brisbane seats

    The Poll Bludger reported Tuesday that DemosAU collectively polled the three Greens-held Brisbane seats (Brisbane, Ryan and Griffith) in mid-April from a sample of 1,087. Labor led the Liberal National Party by 56–44 while the Greens led by 55–45. The LNP had 36% of the primary vote across these three seats, with the Greens and Labor tied at 29%.

    In 2022, primary votes across these seats were 35.7% LNP, 30.7% Greens and 26.2% Labor. The small swing to Labor and against the Greens implies Labor would gain Brisbane from the Greens, with the Greens retaining Ryan and Griffith.

    This poll is far more plausible than the JWS polls that had huge swings to the LNP in all these seats and the Greens a distant third in Brisbane and Ryan.

    NSW Resolve poll: Labor gains from low

    A New South Wales state Resolve poll for The Sydney Morning Herald, conducted with the late March and mid-April federal Resolve polls from a sample of 1,123, gave the Coalition 36% of the primary vote (down two since February), Labor 33% (up four), the Greens 11% (down three), independents 14% (up three) and others 6% (down two).

    No two-party estimate was provided, but The Poll Bludger said Labor had about a 52–48 lead. Labor incumbent Chris Minns led the Liberals’ Mark Speakman as preferred premier by 40–15 (35–14 previously).

    Asked about NSW government services, by 42–27 voters thought public schools good, by 43–32 they thought public transport good and by 37–36 they thought road infrastructure good. But public hospitals were thought poor by 42–38.

    Adrian Beaumont 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. Labor takes large leads in YouGov and Morgan polls as surge continues – https://theconversation.com/labor-takes-large-leads-in-yougov-and-morgan-polls-as-surge-continues-255026

    MIL OSI AnalysisEveningReport.nz

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

    Source: GlobeNewswire (MIL-OSI)

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

    First Quarter 2025 Summary1

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

    CEO Commentary

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

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

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

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

    REVENUE REVIEW

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

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

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

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

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

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

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

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

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

    EXPENSE REVIEW

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

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

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

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

    BALANCE SHEET REVIEW

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    CREDIT QUALITY REVIEW

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

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

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

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


    CONFERENCE CALL DETAILS

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

    ABOUT MIDWESTONE FINANCIAL GROUP, INC.

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

    Cautionary Note Regarding Forward-Looking Statements

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

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

    MIDWESTONE FINANCIAL GROUP, INC.
    FIVE QUARTER CONSOLIDATED BALANCE SHEETS

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

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

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

    MIDWESTONE FINANCIAL GROUP, INC.
    FINANCIAL STATISTICS

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

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

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

    Non-GAAP Measures

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

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

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

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

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

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

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

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

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

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

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

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

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

    Category: Earnings

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

    Source: MidWestOne Financial Group, Inc.

    Industry: Banks

    Contact:

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

    The MIL Network

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

    Source: GlobeNewswire (MIL-OSI)

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

    QUARTERLY HIGHLIGHTS:

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


    CEO COMMENTARY:

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

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

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

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

    Results of Operations:

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

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

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

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

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

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

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

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

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

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

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

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

    Financial Condition and Capital Management:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    Credit Quality:

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

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

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

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

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

    Reclassifications

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

    Non-GAAP Financial Measures

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

    Forward-Looking Statement Disclaimer

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

    Member FDIC

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

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

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

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

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

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

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

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

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

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

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

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

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

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    The MIL Network

  • MIL-OSI United Nations: Frontiers in Astronomy and Space Sciences

    Source: UNISDR Disaster Risk Reduction

    Mission

    Frontiers in Astronomy and Space Sciences is a multidisciplinary journal that unravels the mysteries of the universe by exploring all areas of astronomy and space sciences.

    The journal welcomes submissions across a range of specialties. Topics include, but are not limited to:

    • astrobiology
    • astrochemistry
    • astronomical instrumentation
    • astrostatistics
    • cosmology
    • exoplanets
    • extragalactic astronomy
    • fundamental astronomy
    • high-energy and astroparticle physics
    • local universe
    • low-temperature plasma physics
    • nuclear physics
    • planetary science
    • space physics
    • stellar and solar physics.

    MIL OSI United Nations News

  • MIL-OSI United Nations: Experts of the Committee on the Elimination of Racial Discrimination Commend Ukraine’s Presence Despite the Prevailing Circumstances, Raise Questions on the Treatment of Ukraine’s Indigenous Peoples and the Roma Population

    Source: United Nations – Geneva

    The Committee on the Elimination of Racial Discrimination today concluded its consideration of the combined twenty-fourth to twenty-sixth periodic reports of Ukraine.  Committee Experts congratulated the State party for appearing before the Committee despite prevailing circumstances, while raising questions on the treatment of Ukraine’s indigenous peoples and the Roma population. 

    A Committee Expert congratulated the Ukrainian delegation for making a laudable effort to assess the implementation of the Convention in the country, despite prevailing circumstances. Ukraine should be praised for this effort. 

    Chinsung Chung, Committee Expert and Co-Rapporteur, said the Committee noted that the State party adopted the law on indigenous peoples in 2021.  However, according to information before the Committee, the law only recognised Crimean Tatars, Karaims and Krymchaks as indigenous peoples in Ukraine, while excluding other groups, such as Hutsuls, Lemkos and Gagauz peoples.  Could the delegation provide clarifications on the law on indigenous peoples and how it aligned with international standards? What measures were in place to preserve and promote the identity, language and culture of all indigenous people under the jurisdiction of the State party?

    Ms. Chung also said that according to the representative of the Office of the Ombudsman of Ukraine, around 100,000 Roma became refugees, and around the same number of Ukrainian Roma became internally displaced persons.  Were accurate statistics available?  Did the State party find durable solutions for internally displaced Roma and take measures to ensure that they benefitted from assistance?  What were the State’s plans to include Roma people in recovery and reconstruction programmes?

    The delegation said in 2021, the Ukrainian Parliament adopted the law on indigenous peoples in Ukraine, which was developed through extensive consultations with indigenous groups and civil society, and represented the aspirations of these groups.  In addition, a draft law was developed on the status of the Crimean Tartar people which would be registered in Parliament in the near future. 

    Officially, Ukraine recognised three indigenous groups of peoples, including Crimean Tartars, Karaims and Krymchaks.  The Lemkos people were not considered a national minority group, but rather a cultural group.  The public broadcaster of Ukraine produced programmes for national minorities in their national languages, across broadcast, radio and digital formats. 

    Mr. Lossovskyi said in 2021, the Ukrainian Government approved the Roma strategy, and every two years action plans were prepared for its implementation.  The Roma community was a young community, one of the youngest among the national minorities in Ukraine.  It would be beneficial to use their innovation and abilities in the process of renovating Ukraine when the war was over.  The State was working on providing the Roma with more education. There were many grants provided to Roma for studying in universities. 

     

    Introducing the report, Ihor Lossovskyi, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said during the reporting period from 2014 to 2019, fundamental tragic changes took place in Ukraine, in particular the beginning of the Russian aggression.  At the height of the Russian invasion, in April 2022, Ukraine applied for membership in the European Union, and in June 2022, it received candidate status along with seven relevant recommendations in all spheres of human activity, including recommendation no. 7 on completion of the reform of legislation in the field of national minorities and interethnic relations. 

    To implement these recommendations, Ukraine developed and approved three laws, including the new law on national minorities (communities) of Ukraine, as well as 16 subordinate regulatory legal acts (bylaws) approved by the Government.

    In concluding remarks, Ibrahima Guisse, Committee Expert and Co-Rapporteur, thanked the delegation for the dialogue held, particularly given the context.  War was ended through negotiation and diplomacy, not capitulation. It was hoped this would happen with Ukraine.  The fact that Ukraine was here before the Committee was an example of the State’s willingness to cooperate.

    In his concluding remarks, Mr. Lossovskyi thanked the Committee for their time and interest in the situation in Ukraine.  The Committee’s recommendations were very much appreciated. 

    The delegation of Ukraine consisted of representatives of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience; the Coordination Centre for Legal Aid Provision; the State Committee for Television and Radio Broadcasting of Ukraine; and the Permanent Mission of Ukraine to the United Nations Office at Geneva.

    The Committee will issue its concluding observations on the report of Ukraine after the conclusion of its one hundred and fifteenth session on 9 May 2025.  The programme of work and other documents related to the session can be found here.  Summaries of the public meetings of the Committee can be found here, while webcasts of the public meetings can be found here.

    The Committee will next meet in public on Friday, 25 April at 3.p.m for a half day general discussion on reparations for the injustices from the transatlantic trade of enslaved Africans, their treatment as chattel, and the ongoing harms to and crimes against people of African descent.

    Report

    The Committee has before it the combined twenty-fourth to twenty-sixth periodic reports of Ukraine (CERD/C/UKR/24-26).

    Presentation of Report

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said during the reporting period from 2014 to 2019, fundamental tragic changes took place in Ukraine, in particular the beginning of the Russian aggression, Russia’s brazen destruction of international law, the occupation of the Autonomous Republic of Crimea and the city of Sevastopol, the occupation by the Armed Forces of the Russian Federation and terrorist organizations supported by it of certain parts of the Donetsk and Luhansk regions, as well as the financing by the Russian Federation of terrorist organizations of the occupation administrations. 

    Due to these circumstances, collecting information in the temporarily occupied territories of Ukraine was difficult. As a result of the temporary occupation of the Autonomous Republic of Crimea and the city of Sevastopol by the Russian Federation, and the aggression of the Russian Federation in eastern Ukraine, ensuring the rights of minorities in these areas, especially Crimea, had sharply deteriorated.  Ukrainians and Crimean Tatars, and those who adhered to pro-Ukrainian views, were subject to discrimination in Crimea. 

    During the reporting period, important changes also took place in the religious sphere in Ukraine.  On 15 December 2018, the Unification Council was held, at which representatives of the three Orthodox Churches of Ukraine united into a single church structure, which was called the “Orthodox Church of Ukraine”, and the Metropolitan Epiphany of Kyiv and All Ukraine was elected as its primate.  As of the beginning of 2021, this church jurisdiction had 7,097 religious organizations on the territory of Ukraine, handled by 4,537 clergy. 

    The principles of preventing and combatting discrimination were defined by the 2012 law on the principles of preventing and combatting discrimination in Ukraine.  In May 2014, amendments were made to the law, which improved the legislative definition of discrimination.  In 2019, the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience was established to deal with State policy in the field of national minorities and interethnic relations, freedom of conscience, and freedom of religion. 

    At the height of the Russian invasion, in April 2022, Ukraine applied for membership in the European Union, and in June 2022, it received candidate status along with seven relevant recommendations in all spheres of human activity, including recommendation no. 7 on completion of the reform of legislation in the field of national minorities and interethnic relations.  To implement these recommendations, Ukraine developed and approved three laws, including the new law on national minorities (communities) of Ukraine, as well as 16 subordinate regulatory legal acts (bylaws) approved by the Government. 

    The first stages of the negotiation process with the European Commission regarding Ukraine’s membership in the European Union took place, in particular, the screening of Ukrainian legislation for its compliance with European legislation.  The screening was provided under four subsections on judiciary and fundamental rights: freedom of conscience, freedom of religion; racism, xenophobia, hate speech; racial and ethnic discrimination, including Roma; and rights of national minorities. 

    Based on the results, the European Commission prepared a positive report on the state of Ukrainian legislation and its compliance with European legislation in October 2024.  The next stage of the negotiation process was the preparation of strategic documents, including an action plan to ensure the rights of national minorities in Ukraine, which were in the final stage of preparation. 

    Questions by Committee Experts

    IBRAHIMA GUISSE, Committee Expert and Co-Rapporteur, welcomed that Ukraine had a diverse and high-level delegation.  Ukraine’s presence before the Committee despite the difficult context in the country highlighted the country’s commitment to appear before the treaty bodies. Mr. Guisse then paid tribute to Pope Francis who had been a man of peace. 

    During the period under review, Ukraine had experienced deep upheavals, including the large-scale invasion in 2022, which had given rise to large-scale destruction, human loss and mass displacement. According to information before the Committee, the last census conducted in 2001 showed that the main minority groups included Russians, Belarusians, Moldovans, Crimean Tatars and Bulgarians. Ukraine also has smaller populations of Poles, Romanians, Armenians, Hungarians, Roma and other nationalities.  A subsequent census was supposed to be conducted in 2011, which was postponed until 2020, and had not taken place until now. 

    Other data was also not provided, and the Committee emphasised that the lack of statistics limited the ability to evaluate the enjoyment of different groups of their economic, social and cultural rights.  Were there plans to conduct the census based on the principle of self-identification? What were the measures planned to collect data on the enjoyment of economic and social rights by the different groups under the jurisdiction of the State party? 

    The Committee noted that the legal framework, particularly on principles of preventing and combatting discrimination in Ukraine, did not prohibit discrimination based on all grounds listed in the Convention, particularly national origin and descent.  Were there plans to amend and align the national legislation framework with article 1 of the Convention?  What measures were taken to ensure that the legislative framework prohibited intersecting forms of discrimination? 

    Could the delegation inform the Committee on the implementation of the national human rights strategy for 2015–2020 in 2015 and its action plan?  Was there a timeframe for developing and adopting a strategy on combatting racial discrimination?

    Could the delegation provide information on the mandate and activities of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience?  What were the measures to ensure the consultation and participation of groups vulnerable to racial discrimination in the work of the State Service?  Was the State party planning to establish a central mechanism to coordinate and monitor the implementation of measures designed to combat racial discrimination?

     

    The Committee was concerned that the legislative framework, including the Criminal Code, did not include a definition of all forms of discrimination, or a specific definition of hate speech or sanction for hate speech and crimes.  What measures were being undertaken to review and amend the legislative framework to prohibit all forms of racial discrimination, hate speech and hate crimes in accordance with the Convention? 

    Was the State party planning to amend its Criminal Code, particularly article 161, to remove the requirements and restrictive approach as recommended by the Committee in 2016?  What was the status of the draft law no. 5488 before the Parliament?  How were its provisions in line with the Convention?   

    Could information be provided on the legislative framework on combatting racial discrimination in political discourse, as well as information on complaints received, investigations initiated, and imposed sanctions in this field?  The Committee noted that the law on media included provisions on discrimination and incitement to hatred.  Could clarifications on the law and how its provisions aligned with the Convention be provided?  Could the delegation inform the Committee about measures taken to combat hate speech in the media and over the Internet?  Was there a designated entity to monitor hate speech or avenues to submit complaints by victims? 

    Responses by the Delegation 

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said unfortunately, the last census of Ukraine had taken place in 2001, which was 24 years ago.  There were several reasons for this, including two Ukrainian political revolutions during this time and the beginning of the war with Russia in 2014. The next census had been planned for 2023, but this had been postponed due to the full-scale invasion by the Russian Federation in 2022.  It was impossible in current circumstances to hold another census. 

    Significant work in combatting racial discrimination had been undertaken in the past three to four years.  The State Service of Ukraine for Ethnic Affairs and Freedom of Conscience was established in 2019 and began its work in 2020. The institute directly dealt with issues of national minorities and ethnic policies and consisted of around 40 people. 

    Over the past couple of years, three laws had been adopted by the parliament, including the new law on national minority communities of Ukraine.  This new law was revolutionary, as it described the ethnic policy for Ukraine and prescribed tasks for the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience. According to the law, all those who considered themselves to be national minorities would be recognised by the State as such.  Ukraine had 130 national minorities, and the State took responsibility for all these communities. 

    There was a lack of strict definitions in Ukrainian laws around hate speech and hate crimes.  Ukrainian institutions were working hard to integrate these into Ukrainian legislation.  There was an interagency working group dealing with issues of discrimination, hate speech and hate crime. 

    Questions by Committee Experts

    IBRAHIMA GUISSE, Committee Expert and Co-Rapporteur, appreciated the answers given, noting the circumstances within the country.

    CHINSUNG CHUNG, Committee Expert and Co-Rapporteur, asked for more details on the interagency working group to be provided?  Could more information on the national human rights institution be provided? 

    A Committee Expert said Ukraine’s non-compliance with article 4 was an ongoing issue.  It was strongly recommended that the State follow up on this. 

    Another Expert asked how effective the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience had been in protecting minority rights in Ukraine?  What was the level of participation of national minorities in consultations on State decisions?  Had there been any improvements based on these discussions? 

    A Committee Expert said the situation in Ukraine was incomprehensible.  What could be done about hate speech?  Did Russian people hate Ukrainian people?  Personally, the Expert did not feel this was the case. How could this explain why not everyone opposed the war which continued to take more lives?  While there was hatred, men would continue to wage war. 

     

    FAITH DIKELEDI PANSY TLAKULA, Committee Expert and Follow-Up Rapporteur, expressed gratitude to the State party for responding to the Committee’s request in the one-year time frame, however, many questions by the Committee were not addressed, nor were they provided in the current State report.  Could the State party provide the Committee with the previously requested information in paragraph 16 of the concluding observations? 

    Responses by the Delegation 

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said the questions about the war were philosophical.  This was an existential war for the Ukrainian nation. According to the Russian dictator, Ukrainians did not exist and needed to be re-educated.  To stop the war, the Russian dictator should provide a decree to forces to stop the fight and withdraw from the territory of Ukraine. 

    The Commissioner of Human Rights had a special department focusing on discrimination.  After the screening exercise with the European Union, Ukraine understood there were some gaps in its legislation, particularly when it came to definitions.  Many new laws and bylaws had been approved to fill these gaps, and this was a key focus of the State Service for Ethnic Affairs and Freedom of Conscience. Communication with national minorities was a key step in this regard. 

    Around seven million Ukrainians had left Ukraine as refugees or moved around Ukraine as internally displaced persons. Many people treated the Roma community differently.  The national action plan for the Roma strategy to 2030 was evaluated every two years. Every year, many different roundtables and conferences were organised by the State on the Roma community. 

    Two forums had been organised for the different minorities to discuss any issues they had and how to address them. A forum was organised in Kiev with Polish national minorities, and another one with Greek national minorities. There was a strategy on the development of the Crimea Tartare language.  This year, work had also been finished on the new spelling of the Crimean Tartare language. 

    Questions by Committee Experts

    CHINSUNG CHUNG, Committee Expert and Co-Rapporteur, asked about concrete cases of racially motivated violence and racial profiling, and the measures taken to respond to these cases?  What measures had been taken for increasing public awareness-raising campaigns and other measures to counter incitement to hatred and hate crimes?  The Committee would also like to receive information on measures to prevent discriminatory violence by the police and other law enforcement officers; measures to ensure accountability for incidents of discriminatory violence; and data on these kinds of incidents?

    The Committee was concerned about racist hate speech and discriminatory statements in the public discourse, including by public and political figures and in the media.  How did these victims address their cases, and how effectively were these cases treated?  How many complaints had been received in the last five years, and what was the number of investigations initiated, cases considered before courts, and sanctions imposed on perpetrators?  Could detailed information be provided on complaints registered with the courts, or any other national institution, including the Ukrainian Parliament Commissioner for Human Rights, concerning acts of racial discrimination, racist hate speech and racist hate crimes?

    According to information before the Committee, there were gaps in the implementation of the legal framework, including the lack of specialisation among law enforcement officials and lack of operational standards to handle, register and investigate complaints of racial discrimination and hate crimes.  What measures were being taken to address these concerns, particularly to enhance the capacity of law enforcement officials in handling and investigating complaints related to racial discrimination and hate speech? 

    Information before the Committee indicated that there was a lack of awareness on the rights of victims of racial discrimination and fear of approaching law enforcement officials on this topic.  What measures were being taken to address these issues?  Could a reason be provided for the low rate of complaints at the National Human Rights Commission?  What measures were being taken to enable victims to make complaints more effectively? 

    The Committee welcomed the adoption of amendments in 2024 on the law on free legal aid to allow victims of hate crimes on specific grounds to benefit from secondary legal aid.  However, the information before the Committee indicated that the victims were only entitled to the legal aid at the secondary stage and not to initiate a complaint.  In addition, the implementation of the amendment was postponed until one year after the martial law was abolished.  Could the delegation provide information on these two concerns? 

    Could disaggregated data be provided on complaints by ethnic origin such as by Roma, Jews, Africans and other minorities, as well as by national origin and gender?  Had the complaints changed during the armed conflict, in terms of quantity, nature and results?  What measures were being taken to promote human rights education, including on racial discrimination, in university programmes and teacher training?

    What measures were being taken to raise awareness of the public, civil servants, and law enforcement officials in order to combat societal prejudice against certain minority groups, including the Roma?

    Could accurate statistics of ethnic minorities, including Roma, be provided?  The Committee remained concerned at the persistence of discrimination, stereotypes and prejudices against Roma, including reports of physical attacks and killings. 

    Recent research also demonstrated that the level of antigypsyism in Ukraine was still very high.  According to the social cohesion study, 35 per cent of the Ukrainian population did not want Roma to be in their community at all. What measures had the Government of Ukraine taken to fight antigypsyism? 

    Could data on the education conditions of Roma be provided?  What measures had been taken for improving the situation of education for Roma children? Were they educated in their mother tongue without discrimination?

    The Committee noted the various measures taken by the State party to improve the situation of Roma, including the strategy for the protection and integration of the Roma national minority to 2020 and its action plan.  Could information on the progress and results of strategies and programmes directed at the Roma be provided, particularly the allocated resources to ensure the effective implementation of the strategy and action plan and monitoring of its implementation?  How were members of the Roma ethnic minorities involved in the implementation and monitoring of these policies?  Had the Government consulted with Roma communities when planning and implementing such integration measures, including at the local level?  How were the low levels of funding for these plans being addressed? 

    Responses by the Delegation

    The delegation said the issues affecting the Roma community were a problem, not just for Ukraine but for all European countries.  Prejudices still existed, however, during the war, many Roma men had served in the Ukrainian armed forces and in some cases sacrificed their lives, which had changed the attitude of Ukrainians towards Roma people.  A unity and diversity programme was implemented last year, which was a Ukrainian national cultural programme, with training for Ukrainian police officers. 

    The lack of documents in Roma communities was an issue but this was being addressed through regular visits to regions where the Roma community lived.  Thousands of Roma people had been provided with new documents.

    In 2023, around 60 consultations were organised with different national minority groups.  Permanent consultations and meetings were held with Roma communities. The consultations included members of all relevant ministries.  The next meeting had been planned for the end of April.  April 8 was International Roma Day and a large event had been organised in Kiev, including a roundtable and an all-day conference with the participation of ambassadors and the diplomatic corps.  On the same day, several regions also organised International Roma Day celebrations with different events. 

    Questions by Committee Experts

    A Committee Expert said the implementation of the Committee’s recommendations were lacking.  How were the stakeholders in the consultations selected? The Expert expressed hope that the war would end soon with a fair and sustainable solution.  It was important to remember that the unity towards Roma people should be sustained after the war, and that the stereotypes did not return. 

    FAITH DIKELEDI PANSY TLAKULA, Committee Expert and Follow-Up Rapporteur, said the Committee’s recommendations regarding measures taken to conduct training to raise awareness on the amendments to article 161 of the Criminal Code had not been addressed, and urged the State party to provide this information. 

    Another Expert asked what existing mechanisms were in place to receive complaints from victims of hate crimes? Were they user friendly?

    A Committee Expert asked whether the education system in the State party allowed for the type of education help to prevent hate crimes and racial intolerance for children?  Were there any significant numbers of people of African descent in the State party?  Would Ukraine support the Second Decade for People of African Descent? 

    IBRAHIMA GUISSE, Committee Expert and Co-Rapporteur, asked if Ukraine’s desire to align itself with the European Union’s legislation on hate speech was to address hate speech, or to bring its legislation into line with that of the European Union? 

    An Expert asked if the outcome of today’s dialogue would be brought to the attention of the media?

    Responses by the Delegation

    The delegation said if the Committee approved, Ukraine would provide information to the media about the meeting. Regardless of the ethnicity or culture of any citizen, they could contact the police and make a complaint. There were special school curricula on tolerance and education.  There should be more education in schools, from the youngest level possible. 

    There was an African community in Ukraine; it was not very big but its members were consulted on many issues. The African community had never informed the Government about any issues when dealing with the Ukrainian community. 

    The legal aid system of Ukraine provided several services, including primary and secondary legal aid and access to alternative dispute resolutions.  Regular targeted information campaigns were conducted on the right to legal aid, to provide empowerment for vulnerable groups and build trust in the legal aid system in Ukraine.  There had been only 91 cases of requests for legal aid during the past three years.  There were 500 legal aid centres across Ukraine, as well as an online service. 

    Six months ago, the Government adopted the list of the languages of the national minorities of Ukraine which were under threat of disappearance, and this included the Roma language. Currently, there was a special working group of experts who were familiar with these languages working on initiatives in this regard.

    In a brief comment at the end of the first meeting, MICHAL BALCERZAK, Committee Chair, said the dialogue was public and it was up to Ukraine if it wished to produce information on the discussion. 

    Questions by Committee Experts

    IBRAHIMA GUISSE, Committee Expert and Co-Rapporteur, asked if measures were planned to assess and review the law on national minorities (communities) of Ukraine that aimed to eliminate all discriminatory provisions?  What measures had been taken to consult and ensure the participation of all ethnic and national minority groups in the process of developing and drafting the law and its amendments? 

    While noting the measures taken by the State party to protect Crimean Tatars, in particular those who fled Crimea after 2014, the Committee remained concerned about reports that Crimean Tatars in regions under the authority of the State party faced difficulties in accessing employment, social services and education, and did not receive assistance. What mechanisms had been developed to ensure consultations with ethnic minority groups? 

    Did the State party have information concerning the National Council for Interethnic Harmony?  What measures had been taken by the State party to support women belonging to ethnic or national minority groups in exercising their political rights, including participation in public affairs and raising awareness on their rights and the vital impact of their participation?  What measures were being taken to mitigate the impact of the ongoing conflict on the participation of women in politics?   

     

    According to information received, legislative amendments relating to religious organizations entered into force on 23 September 2024, invoking “national security” as a ground for restricting freedom of religion or belief and freedom of religious association. However, this was not considered a permissible grounds for restriction of freedom of religion under the Convention. What were the measures restricting freedom of religion and belief and their impact on the ethno-religious communities concerned?  Information received referred to practices tending to prohibit the activities of religious organizations, specifically the activities of the Russian Orthodox Church. Could information be provided on the necessity and proportionality of such punitive measures?

    The situation of migrants, asylum seekers, refugees, and stateless persons in Ukraine had been significantly impacted by recent legal and practical developments, particularly since the introduction of martial law in February 2022.  The current legal framework and its implementation presented several challenges that were inconsistent with the Convention. 

    The refugee status determination process in Ukraine did not align with international standards, leading to inconsistent application of legal interpretations and time limits for lodging asylum applications.  This often resulted in the rejection of asylum claims.  New practices had restricted access to asylum and statelessness determination procedures, especially for individuals with ties to the Russian Federation and Belarus.  The State Migration Service often issued oral refusals for asylum applications without official decisions, citing martial law as a reason.  This practice had been recognised by courts as illegal, yet it persisted, leaving applicants in legal limbo.

    How would Ukraine address the inconsistencies in the asylum procedures to ensure alignment with international standards and the Convention?  What legal amendments were introduced under martial law and what was their impact on the rights of refugees and stateless persons?  What procedural safeguards were in place to protect individuals from forcible deportation?  What steps were being taken to improve access to the asylum and statelessness determination procedures, particularly for individuals with ties to the Russian Federation and Belarus? 

    How was the Government addressing the challenges posed by the suspension of diplomatic relations with Russia in verifying nationality in statelessness determination procedures?  What plans did the Ukrainian Government have to develop an integration strategy for refugees and improve reception conditions for asylum seekers?  What steps were being taken to address the unlawful practice of issuing verbal refusals for asylum applications and ensure that applicants received official decisions?

    The Government of Ukraine had made significant strides in addressing statelessness since 2020, including the introduction of a statelessness determination procedure. Despite these efforts, several challenges remained, particularly in the implementation of the procedure and the accessibility of necessary documentation for applicants, which was further exacerbated by the conflict. 

    On 22 January 2024, draft law no. 11469, titled “on amendments to certain laws of Ukraine on ensuring the right to acquire and preserve Ukrainian citizenship” was registered in the Ukrainian Parliament.  The draft law, if passed, could result in the loss of Ukrainian citizenship for residents in Russian-occupied Ukrainian territories, who often had to obtain Russian passports to access basic services, employment, and social benefits. How did the Ukrainian Government plan to address the potential risk of stripping Ukrainian citizenship from residents of occupied territories who acquired Russian citizenship under duress or due to essential needs, such as access to basic services and employment?

    MICHAL BALCERZAK, Committee Chair, said Kiev had been under attack the night before and there had been casualties.  This was a serious and sad situation.  The Committee understood the situation and was very concerned about these tragic events. 

    Responses by the Delegation

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said many members of the delegation had barely slept the night before. Russia had launched missiles from the Black Sea and inside Russia and had bombed Kiev.  Up to now, there were 10 citizens who had been killed and 100 wounded, including children.  Every day, there were peaceful victims of this tragic and bloody war.  The delegation in Ukraine had lost contact with the Committee at the beginning of the session and missed some questions.

    Regarding the law on ethnic minorities, several meetings had been organised with national minorities during the development of the law, predominantly online due to the war.  In December 2022, Parliament adopted the law. At the request of some national minority organizations, the State used the term “communities” instead of minorities. The law encompassed all groups of ethnic peoples, which was around 130 according to the most recent census. 

    Ukraine did not have many new asylum seekers as the situation in the country was not sustainable for a peaceful life. 

    The Ombudsman’s Office was referred to as the Parliamentary Commission of Human Rights.  The independence of this Office was guaranteed, ensuring it could function without undue influence from any external entities.  This enabled the Office to effectively address human rights and issues of non-discrimination.  Its annual report outlined steps taken to combat discrimination. It was a large institution with around 500 employees.  There were branches located across 24 regions of Ukraine.  In 2024, there were 454 complaints received by the Office.  The Office monitored all issues of non-discrimination.  All reports of the Office were public and could be found online.   

    Questions by Committee Experts

    IBRAHIMA GUISSE, Committee Expert and Co-Rapporteur, expressed sorrow at the recent shocking events which had wracked the Ukrainian capital.  What was the impact of martial law on asylum seekers, refugees and stateless persons? 

    CHINSUNG CHUNG, Committee Expert and Co-Rapporteur, asked about the situation of lesbian, gay, bisexual, transgender and intersex persons belonging to minority groups, as well as the situation of elderly people belonging to these groups?  What was the situation of migrant workers, particularly in this situation of armed conflict?

    A Committee Expert asked how far Ukraine had gone in implementing the decision of the European Court of Human Rights on a case versus Ukraine?   

    Another Committee Expert congratulated the Ukrainian delegation for making a laudable effort to assess the implementation of the Convention in Ukraine, despite prevailing circumstances. Ukraine should be praised for this effort.  The Expert was concerned about allegations of racism at the Ukrainian Polish border. Had there been any follow-up on such reports?  How many cases had been brought to court? 

    There had been allegations of racism in sport, including with a Brazilian footballer who was banned for one game after reacting to crowds calling him monkey.  How had this case been handled?  Ukraine should be congratulated for adopting the law on stateless in 2021.  How many individuals had benefitted from the enforcement of that law?  How did the State party plan to provide Roma with national documents? 

    Another Expert said African nationals had been facing discrimination at the borders. 

    What measures were being taken by the State party to ensure the protection, safety and security of all persons living in its jurisdiction? 

    Responses by the Delegation

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said Ukrainian legislation underscored equal rights for men and women. Half of the ministers of the Government were women.  Many women in Ukrainian society occupied high-level positions.  Women from Roma communities were among the most vulnerable. The State had organised several events, including roundtables, which assisted Roma women to find their place in society. 

    Due to the war, Ukraine no longer had many migrant workers.  It was hoped that this would change after the war.  The country would need many workers for innovation and to help rebuild Ukraine. It was hoped workers from many countries would come to Ukraine after the war and help rebuild the hundreds of cities which had been destroyed or partially destroyed. 

    Mr. Lossovskyi said he had not heard of cases of discrimination on the border between Ukraine and Poland.  The case of discrimination regarding the Brazilian football player was an awful occurrence which was not typical for Ukraine. There had been a police investigation, but he could not recall the exact outcome. 

    The delegation said the aggression by the Russian federation had led to a huge influx across Ukraine’s borders. The Government took all accounts of discriminatory treatment very seriously.  Despite difficult conditions, the Government had managed to keep all checkpoints on the borders open. 

    Mr. Lossovskyi said in 2022, a pilot project was launched to provide documents to Roma people in a more effective way.  This was organised in a region where the majority of Roma people lived.  Every year, the State continued this work and made several visits to these places. 

    The delegation said the draft law 5488 was being considered before parliament.  It was hoped the law would be adopted during the current session of Parliament.  The draft law provided for the term “intolerance” and addressed issues under this topic.  All law enforcement agencies were currently working together to introduce the necessary amendments to the Criminal Code.  Police officers had completed specialised human rights training.  Outreach activities, including in schools, were carried out to combat negative stereotypes on the Roma population. 

    Questions by Committee Experts

    CHINSUNG CHUNG, Committee Expert and Co-Rapporteur, said the Committee believed in the necessity of investigating and documenting all human rights violations and abuses committed in the context of the ongoing armed conflict and invasion initiated by the Russian Federation against the State party on 24 February 2022.  What measures had been taken to ensure prompt and impartial investigations?  Could the delegation provide information on investigations and prosecutions into allegations of human rights violations and abuses during the armed conflict with the Russian Federation?

     

    On 11 October 2018, the Holy and Sacred Synod of the Istanbul-based Ecumenical Patriarchate granted autocephaly to a new church, the “Orthodox Church of Ukraine”.  This led to tensions with the Ukrainian Orthodox Church.  The Church was formerly linked to the Russian Orthodox Church under the Patriarch in Moscow, but stated that it severed those ties in May 2022, following the full-scale invasion by the Russian Federation. 

    It was reported that on 23 September 2024 in territory controlled by the Government of Ukraine, new legal provisions regarding religious organizations entered into force, prohibiting the activities of foreign religious organizations based in a State responsible for armed aggression against Ukraine or occupation of its territory, and specifically prohibiting the activities of the Russian Orthodox Church. Could detailed explanations be provided on this and on measures to ensure the respect of the rights to freedom of thought, conscience and religion?

    According to media reports in January 2025, the State party announced the capturing in Russia of two soldiers from the Democratic People’s Republic of Korea, and indicated that they were detained and provided with medical care.  Could the delegation provide information on the situation of these two prisoners of war? What were the legal measures taken against them?  Were there more prisoners of war captured by the State party from other nationalities, including mercenaries? 

    The Committee noted that the State party adopted the law on indigenous peoples in 2021.  However, according to information before the Committee, the law only recognised Crimean Tatars, Karaims and Krymchaks as indigenous peoples in Ukraine, while excluding other groups, such as Hutsuls, Lemkos and Gagauz peoples.  Could the delegation provide clarifications on the law on indigenous peoples and how it aligned with international standards?

    Were there plans to assess and review the law?  What was the situation of the Hutsuls, Lemkos and Gagauz peoples?  What measures were in place to preserve and promote the identity, language and culture of all indigenous people under the jurisdiction of the State party?  Could information be provided on the situation of internally displaced Crimean Tatars, and measures to ensure their access to education, housing, employment, healthcare services and humanitarian assistance?  Was the State party taking measures in consultation with the Crimean Tatar community to find durable solutions for an appropriate settlement of Crimean Tatars in Ukraine?

    The Committee was concerned that during the war, persons belonging to minorities, such as Roma, had difficulties in registering as internally displaced persons and having access to social assistance.  According to the representative of the Office of the Ombudsman of Ukraine, around 100,000 Roma became refugees, and around the same number of Ukrainian Roma became internally displaced persons.  Were accurate statistics available on the Roma?  Did the State party find durable solutions for internally displaced Roma and take measures to ensure that they benefitted from assistance?  What were the State’s plans to include Roma people in recovery and reconstruction programmes?

    What efforts were being made to restore linkages between displaced children and their families?  What efforts were being made to ensure access to education and basic services for displaced children?

    Ukraine’s inadequate response to hate crimes against migrants, African and Asian students and other foreigners had previously attracted international criticism.  What was the situation of non-citizens, particularly migrants, refugees and asylum seekers, and people of African and/or Asian descent during the armed conflict?  Could the delegation provide clarification on the situation of detained undocumented migrants and non-citizens?  Could the delegation also please provide information on measures to ensure their access to education, housing, employment, healthcare services and humanitarian assistance?

    Responses by the Delegation

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said Ukraine did not refer to what was going on in Ukraine as conflict. This was a bloody, existential, colonial war with Russia, not simply a conflict.  In 2018, the Ukrainian Church received independence from the Patriarchal Eastern Christianity Church based in Istanbul, Türkiye.  This was a revolutionary decision, as Ukraine was a big country and did not have an orthodox church.  Now there was an independent church of Ukraine, like all other Christian Orthodox countries.  No other activities of other churches were forbidden in Ukraine.  The only restrictions were for the Russian Orthodox Church, which had restricted activity on the territory of Ukraine. This was because it was an accompaniment of the Russian aggression which had destroyed the country and killed hundreds of thousands of people. 

    Ukraine provided the international standard for prisoners of war in their prison facilities, which were regularly visited by the Ukrainian Ombudsman.  In 2021, Ukraine adopted the law on indigenous peoples and consulted with many minorities on this law.  Indigenous peoples were defined as those who lived on the territory of Ukraine and did not have a mother country.  The Lemkos people were not considered a national minority group, but rather a cultural group. 

    In 2021, the Ukrainian Government approved the Roma strategy, and every two years action plans were prepared for its implementation.  The Roma community was a young community, one of the youngest among the national minorities in Ukraine.  It would be beneficial to use their innovation and abilities in the process of renovating Ukraine when the war was over.  The State was working on providing the Roma with more education.  There were many grants provided to Roma for studying in universities. 

    The delegation said in 2021, the Ukrainian Parliament adopted the law on indigenous people in Ukraine, which was developed through extensive consultations with indigenous groups and civil society, and represented the aspirations of these groups.  In addition, a draft law was developed on the status of the Crimean Tartar people which would be registered in Parliament in the near future. 

    To ensure prisoners of war were not tortured, relevant legislation and policies had been developed.  Three legislative acts had been produced to regulate these affairs. 

    Questions by Committee Experts

    CHINSUNG CHUNG, Committee Expert and Co-Rapporteur, asked if there were representative bodies of minorities inside the Cabinet of Ministers of Ukraine?  How did the State party ensure consultations with all indigenous peoples under the framework of this law? 

    Another Expert said 10 to 20 per cent of Ukrainian Roma did not have identity documents?  Was there a provision for determining statelessness in the act on statelessness?  Did the Roma community benefit from universal birth registration? 

    A Committee Expert asked how many of the ethnic and national minorities participated in the relevant bodies in the Government?  How many Roma, indigenous, or migrant women had been hired or granted responsibility positions, or were integrated in the responsibility of the work? 

    Responses by the Delegation

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said when the law on indigenous peoples was adopted, several bylaws were prepared for the implementation of the law.  According to one of the bylaws, Crimean Tatars regularly consulted with the Government.  Only during the population census could the Government request information about the ethnic groups.  Sometimes women with high-ranking positions did not disclose their ethnicity.  It was up to people to declare this. 

    The delegation said due to the Russian full-scale invasion, there were problems preparing full statistical information on ethnic minorities.  The legal aid system in Ukraine had provided legal assistance to more than 1,000 Roma people over the past three years.  Most of these related to the processing of identity documents.  Secondary legal aid had been provided for 27,000 internally displaced people over the past three years, due to the full-scale invasion. 

    Officially, Ukraine recognised three indigenous groups of peoples, including Crimean Tartars, Karaims and Krymchaks.  Crimean Tartars were represented by an executive body; the spiritual administration of Ukraine represented the Karaim people; and there was no official information regarding a body for the Krymchaks, although they had the full rights to establish such a body under law. 

    Currently, there was no definition of hate speech under Ukrainian law.  The Government of Ukraine had prepared a draft roadmap covering this issue. In Ukraine, a working group made up of State authorities and public organizations was working on a definition of hate speech and establishing administrative and criminal liability depending on the severity of the crime. 

    The public broadcaster of Ukraine continued to create a single information space for minorities.  The broadcaster produced programmes for national minorities in their national languages, across broadcast, radio and digital formats.  The State bodies would do their best to cover all the information needs of the national minorities in Ukraine. 

    Closing Remarks

    FAITH DIKELEDI PANSY TLAKULA, Committee Expert and Follow-Up Rapporteur, said the Committee would send Ukraine concluding observations after the dialogue, with specific recommendations to be enacted within a period of one year. 

    IBRAHIMA GUISSE, Committee Expert and Co-Rapporteur, thanked the delegation for the dialogue held, particularly given the context.  War was ended through negotiation and diplomacy, not capitulation.  It was hoped this would happen with Ukraine. The fact that Ukraine was here before the Committee was an example of the State’s willingness to cooperate. Ukraine was also meeting with the Committee against Torture at the same time, which may have weakened Ukraine’s ability to provide comprehensive answers. 

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, thanked the Committee members for their time and interest in the situation in Ukraine.  The Committee’s recommendations were very much appreciated. 

    MICHAL BALCERZAK, Committee Chair, said racial discrimination was about ethnic and national origin.  The Committee was concerned when ethnic minorities were denied their identity.  This led to wars.  It was now the sixtieth anniversary of the Convention, and the first composition of the Committee had included an expert of Ukrainian origin.

    ___________

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

     

    CERD25.002E

    MIL OSI United Nations News

  • MIL-OSI USA: Replacing Missing or Damaged Documents

    Source: US Federal Emergency Management Agency

    Headline: Replacing Missing or Damaged Documents

    Replacing Missing or Damaged Documents

    FRANKFORT, Ky

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

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

    But there is help available

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

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

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

    Below is a simple guide to getting your documents back quickly

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

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

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

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

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

    Check for locations and details at drive

    ky

    gov

    Social Security CardApply for a replacement at www

    ssa

    gov

    Visit your local Social Security office

    Call 1-800-772-1213 for assistance

    Medicare CardsRequest a new card at MyMedicare

    gov

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

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

    gov

    Military Service Records – Request replacements at www

    archives

    gov/veterans/military-service-records
    martyce

    allenjr
    Thu, 04/24/2025 – 14:03

    MIL OSI USA News

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

    Source: EuroStat – European Statistics

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

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

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

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

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

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

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

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

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

    MIL OSI Europe News

  • MIL-OSI Economics: UK general insurance industry to reach $149 billion by 2029, forecasts GlobalData

    Source: GlobalData

    The UK general insurance industry is projected to grow at a compound annual growth rate (CAGR) of 5.0% from GBP92.9 billion ($119.7 billion) in 2025 to GBP113.0 billion ($149.2 billion) in 2029, in terms of direct written premiums (DWP), according to GlobalData, a leading data and analytics company.

    As per GlobalData’s UK General Insurance Report, the general insurance industry in the UK is expected to grow by 5.8% in 2025, driven by the increasing home insurance cost, the rising natural catastrophic events, the government push for greener vehicles, and rising demand for commercial motor insurance.

    Swarup Kumar Sahoo, Senior Insurance Analyst at GlobalData, comments: “The UK general insurance industry is navigating change, driven by evolving consumer behaviors, climate challenges, regulatory changes, competition, and price sensitivity. Overall, the sector anticipates steady growth but must adapt to emerging risks and consumer demands.”

    Motor insurance is the leading line of business in the UK general insurance industry, estimated to account for a 28.0% share of the DWP in 2025. It is expected to grow at a CAGR of 2.4% during 2025-29. Factors such as recovery of the economy, increased personal injury discount (Ogden) rates, and expansion of commercial fleets will contribute to the growth of motor insurance.

    With an increase in commercial activity, government incentives for electric vehicles (EVs), and a push to transition to zero-emission vehicles by 2035, the fleet operators in the UK are increasingly adopting electric vans. This, along with an increase in new car registrations, which grew by 2.6% in 2024, will support the growth of motor insurance in 2025. Fleet sales accounted for 59.6% of the new vehicle registrations in 2024, according to the Society of Motor Manufacturers and Traders (SMMT).

    Sahoo adds: “The increase in Ogden rate from -0.25% to 0.5% starting January 11, 2025, will lower motor insurance claims costs and is expected to increase insurers’ profitability. The motor insurance premiums, which registered an average increase of 40% during 2022 and 2023, will not witness such a steep increase further and will give some relief to the policyholders.”

    Property insurance is estimated to account for a 25.7% share of DWP in 2025. It is expected to grow by 5.8% in 2025, driven by rising frequency of extreme weather events, including storms and flooding, rising building costs, rising opportunity for contents and renters insurance, and increasing consumer demand for comprehensive coverage.

    Sahoo continues: “The increasing frequency of extreme weather events poses challenges, leading insurers to raise premiums and reassess coverage options in high-risk areas. Collaborative investments in flood adaptation infrastructure are essential to mitigate these risks and expand coverage options for vulnerable communities. The integration of smart home technologies is also transforming the landscape, enabling homeowners to detect issues early, which can reduce claims.”

    Liability insurance is estimated to account for a 15.1% share of DWP in 2025. It is expected to grow by 5.1% in 2025, driven by growing awareness of cyber threats, as businesses seek to protect themselves against increasing cyberattacks. Additionally, the fatal injury of workers, expected to grow by 3% in 2025, as reported in the Health and Safety Executive’s annual statistics, along with the increased Ogden rate, will support the growth of employers’ liability insurance. The evolving needs of consumers and businesses in a rapidly changing environment will continue to support the liability insurance to grow at a CAGR of 7.4% during 2025-29.

    Personal Accident and Health (PA&H), Marine, Aviation, and Transit (MAT), and Financial Lines insurance products are estimated to account for the remaining 31.2% share of the general insurance DWP in 2025.

    Swarup concludes: “The outlook for the UK general insurance market remains positive, with growth driven by regulatory change and evolving consumer needs. Insurers must remain agile and innovative to navigate the challenges posed by climate change and economic pressure. However, the increased Ogden rate is a welcome development for general insurers.”

    MIL OSI Economics

  • MIL-OSI USA: USDA releases Census of Agriculture data results for American Samoa, Guam

    Source: US National Agricultural Statistics Service

    WASHINGTON, April 24, 2025 – The U.S. Department of Agriculture’s National Agricultural Statistics Service (NASS) released the 2023 Census of Agriculture data for American Samoa and Guam today.

    The most widely used statistics in the agriculture industry, the Census of Agriculture, is conducted every five years and provides the most comprehensive and impartial agriculture data at the island level. “We thank the producers who gave their time to complete the questionnaire. The Census of Agriculture data tells their agriculture story,” said NASS Administrator Joseph Parsons. “The agricultural census data provides vital data that helps shape policies, allocate resources, and support the growth and sustainability of agriculture in American Samoa and Guam.”

    Federal and local governments, agribusinesses, organizations, and many more use Census of Agriculture data to support funding research and programs to improve farming techniques and equipment, building infrastructure for high-speed internet, providing effective production and distribution systems as well as natural disaster preparation, response, and recovery assistance.

    Highlights from the 2023 Census of Agriculture:

    American Samoa:

    • There were 7,157 farms, up 13% or 828 farms from 2018. Land in farms totaled 9,253 acres, with an average farm size of 1.3 acres.
    • The total value of sales was $ 35.3 million, with an average value of $ 4,932 per farm.
    • Taro represented the largest category of production, with sales of $ 1,245,378.

    Guam:

    • There were 583 farms, an increase of 319 farms since the last census in 2018. Land in farms totaled 2,848 acres, with an average farm size of 4.9 acres.
    • The total value of sales was $ 6,162,085 million, with an average value of $ 10,570 per farm.
    • Vegetables and melons represented the largest category of production, with sales of $2,636,157.

    For American Samoa, the Census of Agriculture defined a farm as any place that raised or produced agricultural products for sale or home consumption, in 2023. For Guam, the Census of Agriculture defined a farm as any place from which $1,000 or more of agricultural products were produced and sold, or normally would have been sold, in 2023.

    The full Census of Agriculture report as well as publication dates for additional data products from the census can be found at nass.usda.gov/AgCensus

    MIL OSI USA News

  • MIL-OSI: Lingokids Sparks Conversation Around Screen Time Parent Guilt Experienced by More Than 74% of U.S. Parents

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, April 24, 2025 (GLOBE NEWSWIRE) — According to a new survey conducted by Lingokids, the #1 interactive app for kids aged 2-8, more than 74% of American parents, including 75% of Millennial parents, admit to feeling guilty about their child’s screen time use regardless of the need for it and its potential benefits. Despite this struggle with feelings of guilt, less than 10% of American parents frequently engage in discussions about screen time with other parents or caregivers as they feel judged by others.

    Inspired by this data, Lingokids is inviting parents to open a conversation around screen time parent guilt and putting the screen time debate on trial. New Yorkers this week may have noticed thought-provoking out-of-home content prompting parents to vote “guilty or not-guilty” about their feelings when it comes to screen time use for their kids. The verdict will be revealed in a multi-channel campaign culminating with the release of a brand film debuting on May 6.

    “The data highlights the reality parents today are experiencing, with a tension between feeling guilty and judged for allowing screen time while seeing a need for it and the potential benefits,” said Lingokids CMO Mikael Journo. “It’s clear there’s a gap in communication among parents about this topic and a need for more open conversations about healthy management of screen time for children. At Lingokids, we are working to start a transparent conversation on this topic and help this generation navigate the complexities of digital-age parenting.”

    Challenges of Parenting in a Digital World

    Approximately 87% of American parents permit their children to use screens, with 41% of parents allowing up to two hours a day. This reality is compounded by the 54% of American parents who struggle with balancing work and family responsibilities, indicating that external pressures may influence screen time decisions. In addition:

    • Nearly half of parents (46%) feel pressured to constantly entertain their child
    • Admittedly, the pressure mostly comes from themselves (76%), followed by their children (42%), and society (31%)

    Screen Time, Guilt + Judgment

    These modern-day parenting challenges and misalignment with screen time guidelines often result in significant feelings of inadequacy. This sentiment is further amplified by societal judgment, with 77% of American parents feeling judged by others at least some of the time for allowing their children to use screens. In fact, nearly 30% of parents admitted to lying to other parents and caregivers about their child’s screen time use due to fear of judgment.

    The findings also show that 27% of American parents consider themselves mindful about their own screen usage, thereby setting a healthy example for their children. Those who view themselves as positive role models in digital habits report significantly lower levels of guilt, indicating that self-awareness and intentional modeling can alleviate some of the psychological burdens associated with screen time.

    Interestingly, American parents who are largely free from guilt regarding their child’s screen time use are more focused on the quality of the content their child views or engages with rather than the amount of time they spend using screens, pointing to a shift towards content-driven usage. Those grappling with high levels of guilt, however, remain concerned about the duration of screen exposure.

    “This dichotomy suggests that not all screen time is equal,” said Lingokids Education Advisory Board Chair Suzanne Barchers, EdD​. “It is important for parents to discern the most beneficial content for their child’s development. This understanding can lead to increased confidence when making screen time decisions and significantly alleviate parental guilt.”

    Screen Time + Parental Mental Health

    This guilt and judgment surrounding their child’s screen time can profoundly affect the mental health of American parents. In fact, one in four American parents report that judgment related to their child’s screen usage has a detrimental impact on their mental well-being. Furthermore, one in five American parents believe that feelings of guilt associated with their child’s digital engagement also negatively impacts their mental health. These statistics align with the concerns that led to the U.S. Surgeon General Dr. Vivek Murthy’s advisory on the mental health and well-being of parents and caregivers and underline the critical need for enhanced support and understanding regarding management of screen time for children.

    To cast a vote around screen time parent guilt visit www.screentimeguilt.com.

    Methodology

    Lingokids conducted paid surveys in February and March 2025 utilizing Pollfish, a leading survey platform, to collect insights from 1,000 parents of children aged 2-8 in the United States.

    About Lingokids

    Lingokids is an EdTech and media company behind the #1 interactive app for kids aged 2-8.

    With more than 165M downloads around the world, the Lingokids app is packed with thousands of shows, songs and interactive games kids love—all fun, safe and educational.

    Its unique Playlearning™ methodology puts kids at the center of the Lingokids universe. As they explore, they’ll pick up academic knowledge and modern life skills in a safe, age-appropriate, ad-free environment designed for independent exploration. For more information, please visit www.lingokids.com

    The MIL Network

  • MIL-OSI Economics: Where Did Smart Home Hubs Go? Everywhere!

    Source: Samsung

    Not long ago, setting up a smart home meant buying a separate hub, plugging it in, and hoping it would work with all your devices. Hubs were the essential link, helping smart lights, locks, thermostats, and more to communicate seamlessly. They were also often a separate device you needed to choose and buy, find a spare power and network cable for, and set up and maintain. Today, thanks to Samsung’s Hub Everywhere strategy, hubs aren’t just little boxes anymore—they’re built right into the devices you already use every day.
    Your Smart Home Hub Might Already Be Here
    Samsung makes starting and growing your smart home easier by building smart home hubs directly into many of its products. That means your Samsung TV, Smart Monitor, Family Hub refrigerator, or Sound Bar could already be a smart home hub—ready to connect and control devices without the need to buy and set up another device.
    For those who prefer a standalone hub, SmartThings Hubs are still available. But for many, Samsung’s Hub Everywhere strategy is making smart home adoption more seamless than ever.

    What is a Smart Home Hub, and Why Does It Matter?
    A smart home hub acts as the translator and coordinator for your smart devices. Different smart home products use different communication methods—such as Zigbee, Z-Wave, Thread, Matter, Wi-Fi, or Bluetooth. A hub allows them to work together, enabling automations, remote control, and a more cohesive smart home experience.
    Think of a hub as the conductor of your smart home orchestra, keeping things coordinated so your lights dim, doors lock, and thermostat adjusts exactly when and how you want—without you needing to manage each device separately.
    And as the smart home industry moves toward Matter, the universal smart home standard, compatibility between brands and products will only get better—making built-in hubs even more valuable.

    A Smarter Approach to Smart Homes
    In the early days, standalone hubs were the only option. But now, with hubs integrated into your Samsung devices, this means:
    No extra setup – Your smart home hub is already built into your TV, fridge, or monitor, no extra cables or power required. When a hub is available in a Samsung TV, the option to enable will instantly pop up to set up through the SmartThings App.
    Onboard your TV Hub in less than a minute: Walk through the easy steps to onboard the built-in hub on your new TV from the first time you power it on.
    No added cost – You don’t need to buy a separate device to connect your smart home.
    Easier to start your smart home – More people can experience a fully connected home without the hassle of additional hardware.
    Do You Already Have a Smart Home Hub?
    If you’ve purchased a Samsung TV, monitor, or appliance in the past few years, there’s a good chance you already have a built-in SmartThings hub. In fact you might have multiple hubs, which can improve coverage and performance in larger homes. Learn more about how multiple hubs can work together here.
    Not sure if your Samsung device has a Hub built in? Check out our handy guide below to find your model number!
    Get started with your SmartThings hub by adding it to your SmartThings app today!

    MIL OSI Economics

  • MIL-OSI United Kingdom: Westminster Insight – Women and Girls in Sport Conference

    Source: United Kingdom – Executive Government & Departments

    Speech

    Westminster Insight – Women and Girls in Sport Conference

    Sports Minister Stephanie Peacock delivered the keynote speech at the Westminster Insight – Women and Girls in Sport Conference

    Thank you all for being here and inviting me to speak to you today. I am sorry I can’t be with you in person. 

    I want to talk to you today about the remarkable growth of women’s sport that we have witnessed in recent years, and what the Government is doing to build on this momentum. 

    I would like to begin by sharing some statistics. In 2024, UK Women’s Sport attracted audiences of over 44.17 million, an increase of nearly 40% in just two years. Over 2.6 million people attended a women’s sport event in person in 2023, an increase of 23% from the previous year.

    Globally, Deloitte predicts that revenue generated by women’s elite sports will reach at least $2.35 billion, or £1.8 billion, in 2025, with revenues predicted to have risen by 240% in 4 years. 

    This is, of course, good news for economic growth and for those playing women’s elite sport. But most importantly the impact that it will have on women and girls across the country will be profound. 

    Inspiring women and girls across the country to take part in sport is hugely important to me as Sports Minister.

    Girls need to know from a young age that they belong in sport.  That is why we want to review and shape our education system to inspire girls from an early age to get active and build a lifelong love and affinity for sport.  

    To achieve this goal, Government is driving progress across women’s sport: from investing in grassroots facilities to supporting national campaigns.

    It also means action on the elite end of sport, from hosting major events to supporting action to professionalise women’s sport. 

    Bringing all of these elements together is our strategy for women and girl’s sport. Let me take you through each of those in turn.

    Firstly, we want more women and girls than ever to stay physically and mentally fit and healthy.

    In order to do this, we need to keep evolving and challenging the way we think of women in sporting environments in order to understand what challenges and motivates them.  

    Sport England campaigns like This Girl Can has inspired nearly 4 million women to get active and 8 out of 10 women say that the campaign has boosted their confidence.    

    We want women to have options and variety available to them within their local area.  

    Getting this right starts with inclusion. Statistics show that for women on lower incomes from under-represented groups, the challenges and feelings of not being included are even greater.  

    When we support women’s sport, we will support women and girls right across our communities – not just elite athletes however important they are

    Secondly, we know that in order to reach women and girls from all walks of life, equal access to high quality PE and school sports has a fundamental role to play. 

    I have seen first hand the value of school sports in my own constituency in Barnsley South. It was great to visit High View Primary Centre Centre in Wombwell a few weeks ago to watch the FA’s annual Biggest Ever Football Session, and I have enjoyed seeing the impact that events such as the Daily Mile can have on local children across Barnsley. 

    So, through our expert-led review of the curriculum, we are going to ensure that every child has the opportunity to engage in a broad range of subjects, including PE and sport.  I’ve been working closely with the Minister for Schools and with National Governing Bodies across a range of issues, and we are committed to ensuring that all children can access high-quality sport and physical activity across the school day. 

    We also know that access to facilities, player welfare standards and suitable kit and equipment are all key parts of ensuring women and girls have the opportunity to excel.

    On 21 March, we announced an investment of £100 million to fund grassroots facilities throughout the UK. £98 million of this will support projects in 2025/26. 

    This funding will support more women and girls to take part in the sports that they love, particularly by ensuring that funded sites across the UK provide priority slots for women and girls. Beyond this, in England there is funding specifically targeted at creating female-friendly facilities off the pitch, including changing rooms and toilets. 

    As well as focusing on getting women and girls active at a grassroots level, progress in women’s sport requires a healthy professional system to fund participation and to create inspirational role models.

    This is why I am acting on the recommendations of Karen Carney’s independent Review of Women’s Football starting with a series of in depth discussions on the recommendations, and led by a taskforce I have convened to drive this forward.

    We want Karen’s excellent Review to lead to tangible change in women’s football, acting as a wider blueprint for all of women’s sport.

    Our work is already making a difference: we the Taskforce recently agreed on a series of concrete actions to improve player welfare in women’s football. 

    I also want to address one of the major issues identified by Karen in the Review, which is the lack of research.  Only 6% of all sports science research today is dedicated solely to female athletes. Obviously this imbalance is a global challenge but I believe the UK is well positioned to take the lead in addressing, building on our reputation for world class research. This Government is determined to ensure that our sport science research continues to be world leading and tailored to the needs of our athletes.

    On a recent visit to Loughborough University’s Women in Sport Research and Innovation Hub, I saw first hand ground breaking innovation which will shape the future of women’s sport. 

    This includes development in areas such as the menstrual cycle, the design of pregnancy and postpartum sportswear, sports nutrition, and innovation in sports bras.

    This vital work will help us accelerate the progress we have already made and ensure that research into women’s sport is tailored to female athletes.

    Finally, progress in women’s sport also means increasing visibility and inspiring a nation, by showcasing what our world leading female athletes can do.

    We know women and girls across the country are inspired by female role models.

    This summer, some fans will be watching the Lionesses on TV with their family, while others will be at the Women’s Rugby World Cup across England enjoying the atmosphere. Many more will be watching their favourite local teams and athletes from their home town.

    We want everyone to join us in marvelling at the incredible talent we have here in the UK.  We want to create the best women’s leagues in the world and we want to lead the way in helping women’s sport  to stand the test of time and be financially sustainable.

    This will mean that a girl growing up in my area of Barnsley will be able to watch us host major events like the Women’s Rugby World Cup, the Women’s T20 World Cup and the Tour de France Femmes, and be able to recreate moments with their friends at school.

    With our incredible track record for hosting these kinds of events, I know that they are going to be huge success stories that inspire everyone watching women’s sport right across the globe. 

    We are also working hard to support the FA’s bid for the 2035 Women’s World Cup, a tournament with the potential to inspire yet another generation of women’s football fans.

    This is how we lead the way in women’s sport and create lasting legacies for generations to come.

    Before I end today, I want to directly address last week’s Supreme Court ruling, which I am sure is on the minds of many of you attending today. As a Government we have always been clear that when it comes to women’s sport, biology matters and we will continue to support sports to develop policies that protect fairness and safety, particularly when it is not possible to balance those factors with inclusion. Alongside this, sports need to come up with approaches to ensure everyone has the opportunity to take part somehow – and I know that sporting bodies will be considering this in light of the Supreme Court decision.

    As I finish speaking to you today, I recognise that we still have challenges to overcome when it comes to women’s sport. However, the future is also one of huge opportunities to drive women’s sport forward. 

    Progress in women’s sport requires a clear vision.  From young girls learning about sport and movement in school through PE, to teenagers accessing facilities built with women and girls in mind, to adults having the right knowledge, kit and environment, to excel we want to support women and girls at every stage of their lives.  

    We want women and girls across the UK to watch global events hosted at home, to be inspired by their role models and to have the opportunity to dream big.  Every girl deserves that chance.

    And to enable this, this Government is committed to improving access to sport in schools, to making provision of facilities more equal, to improving research, driving visibility and investing in women’s sport at every level.

    It is not enough to focus on one aspect alone.  We must drive progress across all of these areas as part of one cohesive women’s sport strategy.  

    I look forward to working with you all to ensure all women and girls have the opportunities they deserve.

    Thank you.

    Updates to this page

    Published 24 April 2025

    MIL OSI United Kingdom

  • MIL-OSI Africa: Government welcomes decrease in consumer price inflation

    Source: South Africa News Agency

    Thursday, April 24, 2025

    Government has welcomed the decrease in headline consumer price inflation to 2.7% in March from 3.2% in February.

    According to Statistics South Africa (Stats SA), the headline consumer inflation decreased for the first time in five months due to lower fuel prices and softer tuition inflation.

    “The moderation in inflation offers welcome relief to consumers and aligns with ongoing efforts to support economic recovery and keep prices stable. Government remains committed to fostering economic stability and building conditions that support growth and improved living standards,” Government Communication and Information System (GCIS) Acting Director-General Terry Vandayar said.

    Stats SA reported that the fuel index softened by 0.4% from February, taking the annual rate from -3.6% to -8.8%. 

    A litre of 95-octane petrol (inland) was R22.34 in March, down from R24.45 a year before. The average price for diesel declined to R22.80 from R24.85 over the same period.

    “Education fees are surveyed once a year in March. The price index for education increased by 4.5%, lower than the 6.4% rise in 2024. School fees increased by 5.0% (from 6.6% in 2024). Tertiary education institutions charged 3.7% more in 2025, compared with the 5.9% rise recorded the year before,” Stats SA said.

    The annual rate for food and non-alcoholic beverages (NAB) edged lower to 2.7% in March from 2.8% in February. 

    Vegetables, fruits and nuts, cereal products, meat and fish registered higher annual rates. 

    Lower rates were recorded for oils and fats; hot beverages; milk, other dairy products and eggs; cold beverages; and sugar, confectionery and desserts. –SAnews.gov.za

    MIL OSI Africa

  • MIL-OSI Russia: The Art of Management: All-Russian Forum Opens at the State University of Management

    Translation. Region: Russian Federal

    Source: State University of Management – Official website of the State –

    On April 23, the ceremonial opening of the V All-Russian Interuniversity Forum “The Art of Management: Science, Practice, Project Technologies” was held at the Center for Information Technologies of the State University of Management.

    The vice-rector of the State University of Management, Artem Terpugov, gave a welcoming speech.

    “Today’s forum is a unique opportunity for all participants to exchange best practices, present innovative approaches and discuss current issues of implementing project-based learning at universities, as well as developing students’ project activities. I am confident that the forum’s rich program will allow each participant to find useful contacts, gain new knowledge and inspiration for implementing their own projects,” the vice-rector concluded.

    The President of the Project Management Association “SOVNET” Alexander Tovb told the audience about the history of the organization, long-standing cooperation with the State University of Management and the importance of project-based learning.

    As part of the practical part, experts shared their experience in implementing joint projects, forming teams and establishing systematic work.

    Deputy Head of the Federal State Statistics Service for Moscow and the Moscow Region Natalia Alekseeva spoke about the cooperation between Mosstat and the State University of Management, Director of the Business Incubator Dmitry Rogov spoke in more detail about how interaction within the framework of project-based learning is established at our university, and Director of the Project Mentoring Center Ekaterina Illarionova introduced the principals of the organization of mentoring support at the State University of Management.

    Also speaking were the head of the Center for Project Entrepreneurship of IPI LAB LLC Olga Baranenkova, ITMO tracker-adviser Yulia Gaponenko, executive director of the non-profit organization “Mentors for Children” Nina Vorontsova and associate professor of the Department of Information Security of VolSU Yulia Bakhracheva.

    The practical part of the session was conducted by the head of the Center for Didactics of Professional Education of Moscow State Pedagogical University, Daria Vyunova, who helped those gathered test their theories and approaches to project-based learning on specific cases.

    At the same time, the Interuniversity Hackathon “Urban Development Technologies” has started working in the Scientific Library of the State University of Management, in which student interuniversity teams from different areas of training are participating. For 3 days, the students will work on problem cases of customer partners and develop a draft solution, which they will present to an expert jury consisting of specialists delegated by the customer partner and representatives of the Forum organizer.

    Let us recall that the State University of Management is holding the Forum for the fifth time and for the second year it is organizing it in cooperation with the project-methodical association “Association of project-oriented organizations of science and higher education” and the association of specialists and organizations in the field of project management “Association of project management “SOVNET”.

    You can read about how the forum was held in 2024 in this article.

    Subscribe to the TG channel “Our GUU” Date of publication: 04/24/2025

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI Economics: Using the Incoterms® 2020 rules to manage tariff risk in international trade

    Source: International Chamber of Commerce

    Headline: Using the Incoterms® 2020 rules to manage tariff risk in international trade

    We use necessary cookies to make our site work. We’d also like to set optional cookies to optimize site functionality and to give you the most relevant experience. We won’t set optional cookies unless you enable them. Using this tool will set a cookie on your device to remember your preferences.

    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.

    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.

    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.

    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.

    MIL OSI Economics

  • MIL-Evening Report: Preference deals can decide the outcome of a seat in an election – but not always

    Source: The Conversation (Au and NZ) – By Adrian Beaumont, Election Analyst (Psephologist) at The Conversation; and Honorary Associate, School of Mathematics and Statistics, The University of Melbourne

    Every election cycle the media becomes infatuated, even if temporarily, with preference deals between parties. The 2025 election is no exception, with many media reports about preference “deals” being made.

    However, it is important to remember that voters are not required to follow the how to vote cards of the parties they vote for, and only major party voters have a significant percentage who follow the cards.

    Other than the Greens and One Nation, minor parties lack resources to put people at every polling place who will give voters how to vote cards. As a result, how to vote follow rates for most minor parties are low.

    At the 2022 Victorian state election, for example, seven seats had preferences for all voters data entered into a computer system. The Poll Bludger said Sunday that in these seven seats, about 30% of Labor voters exactly followed their party’s how to vote card.

    In seats where the Liberals were making an effort by staffing polling places, over 50% of their voters followed the card. But in Preston, a Labor vs Greens contest, only 29% of Liberals followed the card.

    The major parties will usually be the final two candidates in a seat, so their preferences are not distributed.

    Despite all this, there may be political consequences of preference recommendations.

    At this election, Labor is recommending preferences to the Greens ahead of the Coalition in all seats except in the Victorian Labor-held seat of Macnamara (an “open” ticket without a recommendation between the Greens and Liberals owing to concerns about the Jewish vote in that seat).

    The Coalition is recommending preferences to One Nation ahead of anyone else in 139 of the 147 seats One Nation is contesting.

    Recommending preferences to the Greens may make Labor seem too left-wing to some voters, and recommending preferences to One Nation may make the Coalition seem too right-wing and pro-Trump. One Nation will recommend preferences to the Coalition ahead of Labor in all seats it contests, the same recommendation they used in 2022.

    The Poll Bludger said the Greens will be recommending preferences to Labor in all seats at this election. Occasionally, the Greens issue open tickets. The difference is worth about 5% of the Greens vote, so if the Greens had 10% in a seat, Labor’s two-party vote would be 0.5 points higher with a Greens recommendation to preference Labor than otherwise.

    Trumpet of Patriots will put the incumbent party last in seats they contest. The Poll Bludger said Clive Palmer’s previous United Australia Party did this in 2022. But in 2022, Labor had a higher share of UAP preferences in seats it held than in Coalition-held seats, the opposite of what would be expected if these recommendations had made a difference.

    Trumpet of Patriots is only getting 1% or 2% in current national polls, so their how to vote preference recommendations are not worth worrying about.

    In 2022, Greens preferences (that is, voters who put the Greens as 1 on their House of Representatives ballot) went to Labor over the Coalition by 86–14. One Nation preferences went to the Coalition over Labor by 64–36. These figures are national, and use the Labor vs Coalition two-party count in seats where one major party missed the final two.

    Both the Greens and One Nation are using the same preference recommendations between Labor and the Coalition as in 2022, so their voters’ preferences won’t change because of recommendations.

    Seat-specific recommendations

    The Liberals are recommending preferences to teal independent Kate Hullett in the Western Australian Labor-held seat of Fremantle, after they put her behind Labor in the WA state seat of Fremantle at the March 8 state election. This will increase Hullett’s chance of defeating Labor.

    If the final two in Macnamara are the Greens and the Liberals, The Poll Bludger said Labor’s decision to issue an open ticket will give the Liberals about 2% of the 10% swing they would need to gain Macnamara.

    The Liberals will recommend preferences to Labor in the Tasmanian Labor-held seat of Franklin ahead of an anti-salmon farming independent. They will also recommend preferences to Labor ahead of Muslim Vote-backed independents in the NSW Labor-held seats of Watson and Blaxland. These recommendations will make it difficult for any of these three independents.

    Adrian Beaumont 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. Preference deals can decide the outcome of a seat in an election – but not always – https://theconversation.com/preference-deals-can-decide-the-outcome-of-a-seat-in-an-election-but-not-always-255005

    MIL OSI AnalysisEveningReport.nz

  • MIL-Evening Report: 5 ways to tackle Australia’s backlog of asylum cases

    Source: The Conversation (Au and NZ) – By Daniel Ghezelbash, Professor and Director, Kaldor Centre for International Refugee Law, UNSW Law & Justice, UNSW Sydney

    People who apply for asylum in Australia face significant delays in having their claims processed. These delays undermine the integrity of the asylum system, erode public confidence and cause significant distress to people seeking asylum.

    There are, at the time of writing, 28,691 applications for a protection visa awaiting a decision at the Department of Home Affairs. At least 43,308 applications await review at the Administrative Review Tribunal.

    For people seeking asylum who have their initial applications refused and seek review in the Administrative Review Tribunal and in the Federal Circuit and Family Court, the process can often take more than ten years.

    Whoever wins the upcoming election inherits the daunting task of addressing this issue.

    Our research evaluated data on Australia’s previous attempts to increase efficiency of asylum processing. We also examined international best practice for designing fair and fast procedures, including lessons from recent successful asylum reforms in Switzerland.

    Here are five ways to make Australia’s asylum process more efficient.

    1. Recognise fairness enhances efficiency

    In most countries with asylum systems, processing is neither fair nor fast.

    When trying to increase efficiency, many governments have limited the ability of a person seeking asylum to fairly put forward their case.

    Australia, the United States, and many countries across Europe have introduced accelerated or fast-track procedures that drop essential safeguards including:

    • the right to an interview
    • access to legal assistance, and
    • the opportunity to respond to information that undermines their claim for asylum.

    But these efforts don’t just undermine fairness. They also contribute to slower processing.

    Such measures tend to lead to more appeals, and more cases being overturned by courts and tribunals. This contributes to longer delays.

    Our research into Australia’s now-abolished fast-track procedures demonstrates this. This policy was introduced by the Coalition government in 2014, with the aim of speeding up processing and reducing the backlog of asylum applications.

    It included the creation of a new streamlined review process before the Immigration Assessment Authority. Applicants were generally not interviewed or allowed to put forward new information.

    The resulting system was not only unfair; it was also excruciatingly slow.

    Four in five cases were appealed to the court. About 37% of these were overturned. The delays created by increased litigation clearly counteracted any time saved.

    One of the best ways to improve the efficiency of asylum processing is to ensure applicants can present their cases effectively from the outset.

    2. Fund legal representation for those who can’t afford a lawyer

    Research shows legal assistance increases efficiency.

    Lawyers can help assist people to prepare and present their case properly, and ensure that they get a fair hearing (reducing the chance of a lengthy appeal).

    Promisingly, in 2023 the federal government announced A$48 million in funding for legal services for people seeking asylum.

    It’s crucial this funding is maintained, and is sufficient to meet demand.

    3. Invest in decision-makers

    Once a person lodges their claim for asylum, it’s first assessed by the Department of Home Affairs. If the application is denied, the applicant can seek review at the Administrative Review Tribunal, which reassesses the merits of the application.

    If the tribunal rejects the claim, the court can conduct a limited review focusing only on whether the decision was lawfully made.

    A fast process is only possible if we have enough of all these decision-makers across the system.

    This requires investment in training and hiring suitably qualified decision-makers who are equipped to handle the volume and complexity of asylum claims.

    This is underway. The federal government has invested $58 million in October 2023 towards hiring additional Administrative Review Tribunal members and Federal Circuit and Family Court judges for asylum cases. It’s also hiring more staff at the Department of Home Affairs.

    Australia’s next government should consider taking a data-driven approach to calculate the decision-making capacity required for existing and future caseload.

    4. Prioritise simple cases for faster processing

    Not all asylum cases are equally complex; some can be resolved relatively quickly.

    Australia needs a robust and transparent triaging system to identify and prioritise simpler cases for faster processing.

    This would significantly improve overall efficiency and allow decision-makers to focus on more complex cases.

    The Department of Home Affairs’ current approach to triaging is a “last in, first out” system that prioritises new asylum applications for rapid processing.

    However, this leads to substantial unfairness for applicants who lodged their claims earlier, who may face long processing delays.

    The department needs an approach to streaming based on case complexity, to ensure all cases are finalised as quickly as possible.

    5. Better coordination across decision-making bodies

    The various bodies involved in asylum processing – including the Administrative Review Tribunal, the Federal Circuit and Family Court and the Department of Home Affairs – need to coordinate to improve efficiency and cut delays.

    Any government reforms aimed at increasing the efficiency of asylum procedures must be system-wide.

    By taking a holistic view, we can ensure that increased efficiency at one stage does not inadvertently create bottlenecks or inefficiencies in another.

    A fundamental shift

    Overall, Australia needs a fundamental shift that recognises fairness contributes to, rather than detracts from efficiency.

    That shift is essential for developing a fair and fast asylum process that will serve the best interests of applicants, the government and the Australian public.

    Daniel Ghezelbash receives funding from the Australian Research Council and the Robert Bosch Foundation. He is a board member of Refugee Advice and Casework Services, Wallumatta Legal, and the Access to Justice and Technology Network. He is also a Special Counsel at the National Justice Project.

    Keyvan Dorostkar receives an Australian government Research Training Program (RTP) Scholarship.

    Mia Bridle receives an Australian government Research Training Program (RTP) Scholarship.

    ref. 5 ways to tackle Australia’s backlog of asylum cases – https://theconversation.com/5-ways-to-tackle-australias-backlog-of-asylum-cases-254071

    MIL OSI AnalysisEveningReport.nz

  • MIL-Evening Report: Many experienced tradies don’t have formal qualifications. Could fast-tracked recognition ease the housing crisis?

    Source: The Conversation (Au and NZ) – By Pi-Shen Seet, Professor of Entrepreneurship and Innovation, Edith Cowan University

    Once again, housing affordability is at the forefront of an Australian federal election.

    Both major parties have put housing policies at the centre of their respective campaigns. But there are still concerns too little is being done to address supply.

    One of the biggest hurdles is an ongoing shortage of skilled tradespeople, and difficulties attracting new workers. The construction industry accounts for 9% of Australia’s workforce. Yet an estimated 35% of workers lack formal qualifications.

    On Wednesday, Labor announced an election promise to fast-track formal trade qualifications for about 6,000 experienced but unqualified tradies.

    The Advanced Entry Trades Training program would start in 2026 and cost A$78 million.

    This program should help address some of the skills shortages in the sector. But it will be a long time before these benefits begin flowing through the system. And Australia is still likely to fall short of the government’s ambitious new home targets.

    Recognising skills we already have

    The Advanced Entry Trades Training program is intended to partly bridge the gap in construction skills shortages through a process called “recognition of prior learning” – and by offering free training to fill any skill gaps.

    In principle, recognition of prior learning allows individuals with substantial and relevant industry experience to attain formal qualifications without lengthy training programs.

    A similar approach was adopted in the healthcare sector as an emergency response to the pandemic, to boost the number of qualified workers.

    For the construction industry, it will encompass workers currently in the industry who have not completed an apprenticeship, as well as skilled migrants in Australia whose abilities remain unverified.

    This process can improve pay and conditions for participants. But it can also potentially fast-track their entry into the qualified workforce, addressing immediate skills shortages.




    Read more:
    A grab bag of campaign housing policies. But will they fix the affordability crisis beyond the election?


    Will it work?

    Labor’s new initiative mirrors an existing program at the state level, the New South Wales government’s Trade Pathways for Experienced Workers Program.

    According to Labor, this program saw 1,200 students earn their qualifications in an average time of seven months (as opposed to several years).

    It’s important to note this includes trades from all sectors of the NSW economy. But it is much faster than the traditional process of skill recognition. The Parkinson Review of Australia’s migration system found this process can take up to 18 months for a skilled migrant and cost over $9,000.




    Read more:
    Australia has a new National Skills Agreement. What does this mean for vocational education?


    Increased housing supply? Not soon

    Combined with other initiatives such as incentive payments for construction apprentices, the new Advanced Entry Trades Training program should help address some skills shortages in the sector.

    Australia’s peak construction industry body, Master Builders Australia, praised the proposal, citing its own analysis suggesting for every new qualified tradie, an extra 2.4 homes can be built.

    Even with these initiatives, the sector will likely fall short of the 83,000 additional skilled tradespeople needed to meet the Albanese government’s target to build 1.2 million new homes over five years.

    And it may mainly solve a categorisation issue. Currently, only about 80% of employers in the construction sector in Australia require all job applicants to hold a formal qualification.

    Crucially, it doesn’t address the core problem of attracting higher numbers of suitable people to a very traditional industry and helping them finish their qualifications. Almost half of construction sector apprentices do not complete their training.

    Other challenges

    There are other challenges for recognition of prior learning schemes more broadly.

    Research into recognition of prior learning for construction sector apprentices suggests some Australian employers and training providers may be averse to fast-tracking training. About 64% of assessed apprentices had prior experience and skills, but only 30% had their training shortened.

    These issues are even more complex when considering accelerated pathways for skilled migrants from a range of countries. There are some significant, well-documented challenges in transferring or recognising vocational qualifications across international boundaries.

    More to be done

    The Advanced Entry Trades Training program may go some way to alleviating a skills shortage in construction. But it will only partially address the broader issues of supply.

    Australia’s vocational education and training systems are complex, making it difficult to predict the outcomes.

    The proposed program does not address the problem of rising construction material costs and shortages. This problem is worsened by the declining productivity of the housing construction sector, which has halved over the last 30 years.

    Declining productivity isn’t just down to skilled labour shortages. It has also been attributed to other factors such as complex planning approvals, limited innovation, and a predominance of small firms.

    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. Many experienced tradies don’t have formal qualifications. Could fast-tracked recognition ease the housing crisis? – https://theconversation.com/many-experienced-tradies-dont-have-formal-qualifications-could-fast-tracked-recognition-ease-the-housing-crisis-255108

    MIL OSI AnalysisEveningReport.nz

  • MIL-Evening Report: The biggest losers: how Australians became the world’s most enthusiastic gamblers

    Source: The Conversation (Au and NZ) – By Wayne Peake, Adjunct research fellow, School of Humanities and Communication Arts, Western Sydney University

    The story goes that the late billionaire Australian media magnate Kerry Packer once visited a Las Vegas casino, where a Texan was bragging about his ranch and how many millions it was worth.

    Packer produced a coin from his pocket and said: “I’ll toss you for it: my cash against your ranch”.

    The Texan declined.

    This story may or may not be true. But it is consistent with the old maxim that Australians love a punt and will bet on just about anything, even on two flies crawling up a wall (which one will fly off first?).

    A rich history

    Australians are the biggest (or worst) gamblers in the world per capita. How did it come to this?

    By the 1830s, following European settlement in Australia, there was a steady stream of migrants who were taking the ultimate gamble – resettling on the other side of the world.

    The discovery of gold in the 1850s then encouraged a torrent of speculators often armed with no more than a shovel and a wheelbarrow.

    Most remained insolvent but some found bonanzas. Gold-rich towns, Melbourne in particular, developed rapidly. Modern enclosed racecourses soon followed.

    At first, gambling was restricted to side bets between the horses’ connections.

    That changed in 1882 when Englishman Robert Sievier visited Australia. He was the first bookmaker to stand on a regular pitch, accept cash bets and pay winners after each race.

    Sievier soon had numerous imitators on course – bookmakers registered with race clubs, betting on races like the Melbourne Cup, which by the 1890s attracted 100,000-plus racegoers.

    Some fun on the front line

    People bet off-course too – in barber shops and saloons, not only on the races but rowing events, cycling and “pedestrianism” (foot races).

    Despite state betting acts passed in 1906 intended to restrict gambling, by the first world war, capital cities were dotted with racecourses.

    Male racegoers were encouraged to “play up and play the game” – as the famous 1892 imperialist poem Vitai Lampada by Henry Newbolt urged – and enlist in the defence forces.

    When their enthusiasm curbed in 1917 after causalities at the front seeped back, governments reduced the number of race meetings but this caused crowds at those remaining to treble.

    Meanwhile, at the front lines, Australian soldiers adopted the egalitarian coin-toss game of two-up: a game where coins are spun in the air and bets are laid on whether heads or tails are facing up once they settle on the ground.

    Two-up remains a facet of the Australian psyche today – illegal, although authorities turn a blind eye on Anzac Day, supposedly out of respect for returned soldiers.

    This concession reflects the connection in Australia between mateship, the “Anzac legend”, sport and gambling.

    The pokie problem

    After the first world war, racecourse attendances grew even larger.

    The 1929 Depression eroded them but the emergence of racing radio broadcasts and the spread of the telephone network fed a regrowth in illegal off-course betting, especially in New South Wales.

    That state was also the scene of the next big, and perhaps most significant, development in gambling in Australia: the legalisation of poker machines in 1956.

    “The pokies” were originally restricted to registered clubs: mostly returned servicemen clubs, but in 1997, the NSW Labor government allowed them into hotels, where they soon rendered the less exciting “dancing joker” card machines extinct.

    The other states long resisted the temptation to legalise pokies. As a result, coaches loaded with would-be players from Victoria visited clubs at New South Wales border towns such as Corowa.

    The pokies were finally legalised in Victoria in 1991, later in other states. In Western Australia they remain legal in casinos only.

    Poker machines are widely regarded as a more insidious and dangerous form of gambling – in most other countries they are restricted to casinos.

    Since then, pokies have become a major part of Australia’s gambling landscape. In fact:

    The options are endless

    Poker machines reign as the dominant form of gambling in Australia, but there are many more options: lotteries and instant lotteries (“scratchies”), Keno and sports betting, which is fast replacing horseracing as the main business of the so-called corporate bookmakers that have emerged in the past 25 years.

    As technology continues to advance, online gambling – which is difficult to regulate and control – might be the biggest ongoing threat to gamblers.

    Wayne Peake 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 biggest losers: how Australians became the world’s most enthusiastic gamblers – https://theconversation.com/the-biggest-losers-how-australians-became-the-worlds-most-enthusiastic-gamblers-252496

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI USA News: Reinstating Common Sense School Discipline Policies

    Source: The White House

    class=”has-text-align-left”>By the authority vested in me as President by the Constitution and the laws of the United States of America, and to ensure safety and order in American classrooms, it is hereby ordered:

    Section 1.  Purpose and Policy.  The Federal Government will no longer tolerate known risks to children’s safety and well-being in the classroom that result from the application of school discipline based on discriminatory and unlawful “equity” ideology.

     In January 2014, the Department of Education and the Department of Justice jointly issued a “Dear Colleague” letter regarding school discipline.  In that letter, the Department of Education and the Department of Justice explained that schools could be found to violate Title VI of the Civil Rights Act of 1964 — and therefore could lose Federal funding — if their disciplinary decisions ran afoul of a newly imposed disparate-impact framework under which race-neutral disciplinary policies, applied in an even-handed manner, may be improper if members of any racial groups are suspended, expelled, or referred to law enforcement at higher rates than others.  The letter effectively required schools to discriminate on the basis of race by imposing discipline based on racial characteristics, rather than on objective behavior alone. 

    The consequences harmed students and schools.  A 2018 report from the Federal Commission on School Safety (Commission) noted evidence that, because of the 2014 letter, “schools ignored or covered up — rather than disciplined — student misconduct in order to avoid any purported racial disparity in discipline numbers that might catch the eye of the federal government.”  As a result, students who should have been suspended or expelled for dangerous behavior remained in the classroom, making all students less safe. 

    As the Commission found:  “When school leaders focus on aggregate school discipline numbers rather than the specific circumstances and conduct that underlie each matter, schools become less safe,” and “[r]esearch clearly indicates that the failure of schools to appropriately discipline disruptive students has consequences for overall student achievement.”  The Commission’s seemingly obvious conclusion was that “disciplinary decisions are best left in the hands of classroom teachers and administrators” and should be based on student behavior, rather than racial statistics.

    Following the Commission’s report on December 18, 2018, the 2014 Dear Colleague letter was rescinded.  In 2023, however, the previous administration’s Department of Education and Department of Justice issued new guidance noting that statistical racial disparities in student discipline may indicate violations of law, and encouraging schools to collect, analyze, and adjust their disciplinary policies in light of racial disciplinary data.  The 2023 guidance thus effectively reinstated the practice of weaponizing Title VI to promote an approach to school discipline based on discriminatory equity ideology.  As a consequence of these policies, teachers and students are suffering increased levels of classroom disorder and school violence.

    Sec. 2.  Definitions.  As used herein:
    (a)  The definitions in the Executive Order of January 29, 2025 (Ending Radical Indoctrination in K-12 Schooling), shall apply to this order.
    (b)  “Behavior Modification Techniques” means any school discipline policies or practices that incorporate or are based on discriminatory equity ideology.

    Sec. 3.  Ensuring Commonsense School Discipline Policies.      (a)  Within 30 days of the date of this order, the Secretary of Education, in consultation with the Attorney General, shall issue new guidance to local educational agencies (LEAs) and State educational agencies (SEAs) regarding school discipline and their obligations not to engage in racial discrimination under Title VI in all contexts, including school discipline.
    (b)  The Secretary of Education shall take appropriate action with respect to LEAs and SEAs that fail to comply with Title VI protections against racial discrimination in the application of school discipline.
    (c)  Within 60 days of the date of this order, the Secretary of Education and the Attorney General shall initiate coordination with Governors and State Attorneys General regarding the prevention of racial discrimination in the application of school discipline.
    (d)  Within 90 days of the date of this order, the Secretary of Defense shall issue a revised school discipline code that appropriately protects and enhances the education of the children of America’s military-service families.
    (e)  Within 120 days of the date of this order, the Secretary of Education shall, in coordination with the Attorney General, the Secretary of Health and Human Services, and the Secretary of Homeland Security, submit a report to the President, through the Assistant to the President for Domestic Policy, regarding the status of discriminatory-equity-ideology-based school discipline and behavior modification techniques in American public education .  The report shall include:
              (i)    an inventory and analysis of the nature and consequences of all Title VI discipline-related investigations since 2009;
              (ii)   an assessment of the role of non-profit organizations that are Federal grant recipients in promoting discriminatory-equity-ideology-based discipline and behavior modification techniques, and recommendations to ensure that Federal taxpayer funds do not flow to programs or activities, including those of non-profit organizations, that promote discriminatory-equity-ideology-based discipline and behavior modification techniques;
             (iii)  an assessment of discipline-related policies and curricular options that do not promote discriminatory equity ideology; and
              (iv)   model school discipline policies that promote common sense, protect the safety and educational environment of students, do not promote unlawful discrimination, and are rooted in American values and traditional virtues.

         Sec. 4.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect:
              (i)   the authority granted by law to an executive department or agency, or the head thereof; or
              (ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
    (b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
    (c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

                                  DONALD J. TRUMP

    THE WHITE HOUSE,
        April 23, 2025.

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  • MIL-OSI Russia: Uzbekistan: Staff Concluding Statement of the 2025 Article IV Mission

    Source: IMF – News in Russian

    April 23, 2025

    A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

    The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

    Washington, DC:

    Recent Developments, Outlook, and Risks

    The economy has continued to perform strongly. Real GDP growth was robust at 6.5 percent in 2024, supported by strong domestic demand. The external current account deficit narrowed by 2.6 percentage points of GDP to 5.0 percent in 2024 on the back of strong remittances, high commodity prices, rapidly growing non-gold exports, and the winding down of a one-off increase in imports in 2023. International reserves remain ample. The consolidated government deficit (CGD) fell by 1.7 percentage points of GDP to 3.2 percent in 2024, largely reflecting a reduction in energy subsidies and better-targeted social expenditure, with higher gold prices mitigating lower VAT revenues from high VAT refunds. However, the reduction in domestic demand from the smaller deficit was dampened by higher spending in the broader public sector, including from SOEs, facilitated by an increase in the external borrowing ceiling. Inflation remains elevated, with a headline reading of 10.3 percent year-on-year (y/y) in March 2025, reflecting last year’s needed increases in energy tariffs and other administered prices, as well as spillovers into other prices.

    Growth is expected to remain robust, however, external uncertainty has ratcheted up recently. The announced global tariff increases have increased uncertainty and tightened global financial conditions and could affect Uzbekistan through external demand, commodity prices, and financial flows. Despite this uncertainty, under the baseline, real GDP growth is projected to remain close to 6 percent in 2025 and 2026, supported by continued strength in private consumption, investment, and advancement of structural reforms. The current account deficit is forecast to remain unchanged at 5 percent of GDP in 2025, as higher gold exports and broader public sector consolidation offset weaker non-gold export performance brought about by slower growth in trading partners. Inflation is expected to moderate to slightly above 8 percent y/y at end-2025, and continue to gradually decline thereafter, supported by tight macroeconomic and macroprudential policies and the continuation of structural reforms.

    Elevated uncertainty presents both risks and opportunities. Key external risks stem from larger and protracted trade policy shocks, spillovers from the war in Ukraine, reduced availability of external financing, and commodity price volatility. Domestically, risks include higher-than-expected fiscal deficits, upward adjustments to borrowing ceilings, weakened bank balance sheets, and contingent liabilities from state-owned enterprises, state-owned commercial banks (SOCBs), and public-private partnerships (PPPs). Opportunities could arise from faster implementation of structural reforms, stronger capital and remittance inflows, and higher gold prices.

    Fiscal Policy

    The decline in the consolidated government deficit (CGD) in 2024 is welcome. Staff commends the government for reducing the CGD and remaining committed to the 3 percent medium-term fiscal target. Adhering to the external borrowing limit of US $5.5 billion in 2025 and setting future borrowing ceilings that ensure public and publicly guaranteed debt as a share of GDP doesn’t increase are paramount to enhance budget credibility, help mitigate risks from state-owned enterprises and PPPs, and alleviate demand pressures on inflation. Volatile gold prices create risks of inflationary spending pressures when they are high, and pressures to lower spending when they are low, exacerbating macroeconomic fluctuations. The authorities should thus seek to minimize responses of government spending to gold price changes.

    Revenue mobilization and spending rationalization are needed to create room for development and social needs. A medium-term revenue strategy is needed to offset the 2 percentage point of GDP decline in the tax-to-GDP ratio since 2020. Tax policy options include reforming the corporate and personal income taxes, reducing income-based tax incentives, and removing ineffective customs exemptions while refraining from granting new ones. These should be complemented by revenue administration measures, including revamping the audit program and improving large taxpayer office operations, while ensuring that taxpayers’ rights are respected. In this regard, the two strategies currently under consideration, to reform the tax administration and combat the shadow economy should be approved and implemented. Rationalizing wages, reducing the cost of goods and services leveraging recent procurement reforms, accelerating state-owned enterprise reforms, further consolidating and improving the design of social assistance programs, and reforming the pension system would enhance spending efficiency.

    The reform of fiscal institutions should continue in order to strengthen fiscal discipline and transparency. Staff commends the government for adhering to the budget calendar, preparing the fiscal strategy paper and fiscal risk statements, and adopting the 2025-2030 Public Financial Management Reform Strategy. Further progress is needed to unify the public investment process irrespective of the financing source, better align and integrate the preparation of capital and current budgets, cover all capital expenditures institutions are responsible for when setting their budget ceilings, and publish these ceilings with the budget documents. Importantly, to address fiscal risks from a rapidly growing PPP pipeline, the authorities have made notable progress in designing a system to monitor and manage risks from PPPs. This should be complemented by conducting a sensitivity analysis of key assumptions, include potential PPP costs in the budget, integrate PPPs in the broader public investment management framework, and lower the annual PPP cap in line with limited absorption capacity. Improving Government Financial Statistics (GFS) reporting and publishing the debt management strategy, along with annual borrowing plan, will strengthen fiscal transparency and facilitate relations with investors.

    Monetary and Exchange Rate Policy

    The Central Bank of Uzbekistan (CBU) should keep monetary policy tight until inflation approaches its 5 percent target. The recent policy rate hike in response to rising inflation and inflation expectations signals the CBU’s readiness to address existing pressures. Monetary policy should remain data-driven and be tightened further if core inflation or inflation expectations do not decline. The exchange rate should be gradually allowed to fluctuate in wider ranges to better reflect market conditions, serve as a shock absorber, safeguard reserves, incentivize firms to hedge foreign exchange exposures, and help avoid persistent depreciation expectations. In addition, adhering to the principle of neutrality within the calendar year will facilitate exchange rate flexibility. Staff commends the CBU for its efforts to enhance communication. Bolstering communication further will help anchor inflation expectations and ensure predictability of monetary policy. Efforts to strengthen monetary policy transmission should continue by further improving liquidity management, modernizing the reserve requirements framework, and reducing the role of the state in the banking sector and high dollarization.

    Financial Sector Stability

    The authorities should advance reforms of state-owned commercial banks (SOCBs) and accelerate their privatization to promote financial stability and efficient resource allocation. Their mandates should focus on profitability, and any costs arising from non-commercial operations should be fully and transparently compensated for in the budget until these operations are gradually phased out. Strengthening the corporate governance of SOCBs would support their commercial focus, facilitate privatization, promote state-owned enterprise restructuring, improve monetary policy transmission, and increase access to affordable credit for the private sector. A reduction in government ownership of banking system assets to 40 percent, as envisaged in the 2020-2025 banking reform strategy, calls for the acceleration of SOCB privatization. Transparent procedures, strong regulatory frameworks, good creditor and shareholder rights, and competitive bidding during the privatization process would ensure the attraction of qualified investors and maximize asset value. Furthermore, staff advises against current plans to keep systemic banks as policy banks, which could increase financial risks or costs to the budget.

    Bank supervision should be enhanced, including by adopting international standards. Staff advises the authorities to implement the recommendations of the recent and first Financial Sector Assessment Program (FSAP) for Uzbekistan. These call for reforms to focus on strengthening bank regulation; implementing robust risk-based supervision; enhancing systemic risk analysis and stress testing; strengthening capital requirements; aligning asset classification and non-performing loan resolution with international best practices; improving payment system oversight; and establishing adequate bank resolution, crisis management, and financial safety net arrangements.

    The Central Bank of Uzbekistan (CBU) should continue to closely monitor and be prepared to address emerging financial stability risks. The welcome introduction of macroprudential measures in 2023-24 has moderated household credit growth and resulted in banks’ increased attention to borrower’s creditworthiness. Nevertheless, the microlending segment has been growing rapidly as micro loans and credits are provided under less stringent conditions. While initiatives that aim at enhancing financial inclusion and deepening are welcome, they should not undermine proper credit assessment by banks, which would add to financial stability risks. The CBU should therefore strengthen risk-based supervision to limit these risks and deploy additional capital requirements or other binding macroprudential measures, as needed. It should also address risks from foreign exchange lending to unhedged corporate borrowers, and lending to individuals without formal income and to corporates facing heightened risks of insolvency or illiquidity. Phasing out preferential and directed lending should remain a priority.

    Structural and Governance Reforms

    After significantly advancing economic transition reforms, Uzbekistan needs to complete them and accelerate implementation of institutional reforms. Necessary energy tariff and broader administrative price increases have advanced price liberalization and should be continued until its completion to allow prices to fully reflect market forces. Significant progress has also been made with World Trade Organization accession in both bilateral and multilateral tracks, and the increased engagement with neighboring countries and other regions such as the Gulf Cooperation Council, have significantly contributed to advancing trade liberalization and diversification. Support for state-owned enterprises needs to be transparent, made conditional on restructuring, and be gradually phased out to level the playing field for the private sector. State involvement in the economy should continue to be reduced, and privatization of large state-owned enterprises should be accelerated and carried out in accordance with international best practices. Controls and direct intervention should be replaced with effective regulation and market institutions. Facilitating firm entry and exit would further contribute to stimulate a competitive environment for the private sector.  

    Governance, labor, and climate reforms should continue. Governance indicators have improved significantly in recent years. The enactment of the conflict-of-interest law, training of government officials to implement it, and the establishment of the Virtual Anti-Corruption Academy are welcome. Public discussion of the draft law on asset declaration for officials of the government and state enterprises, and cabinet review of the draft whistleblower protection law are expected soon. The authorities should enact and implement these laws as soon as possible. Improving transparency and access to information, particularly regarding procurement, and finalizing the National Strategy on Anti-Corruption would also contribute to improved efficiency of public spending and administration. Labor market reforms need to be accelerated to address low female labor participation, high informality, and skill mismatches. Completing the energy price reform and swiftly adopting measures to enhance water efficiency, diversify crops, and support reforestation efforts will significantly advance the climate agenda. Improving the quality of statistics would lead to better analysis and more informed policymaking.

    The mission would like to thank the Uzbek authorities, stakeholders, and private sector representatives for their hospitality, constructive policy dialogue, and productive collaboration during the Article IV mission.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Wafa Amr

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    https://www.imf.org/en/News/Articles/2025/04/23/mcs-042325-uzbekistan-staff-concluding-statement-of-the-2025-article-iv-mission

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