MIL-OSI USA: US Department of Labor releases new Job Corps Transparency Report

Source: US Department of Labor

WASHINGTON – The U.S. Department of Labor’s Employment and Training Administration today released a detailed report analyzing the financial performance and operational costs of the Job Corps Program, the federally funded residential career training and education program for eligible low-income young adults ages 16 to 24.

The 2025 “Job Corps Transparency Report” delivers a granular, data-centric examination of program expenditures and efficiency metrics, aggregating unmanipulated financial data and performance evaluations produced by the department’s national Job Corps Office. This report specifically analyzes the most recently available metrics from program year 2023, including cost per enrollee and per graduate.

“Taxpayers deserve to know the facts and outcomes of their multi-billion-dollar investment,” said Acting Assistant Secretary for Employment and Training Lori Frazier Bearden. “This report underscores the department’s commitment to program transparency and accountability – both of which are essential for effective oversight, informed policymaking, and maintaining public trust.”

The report’s metrics distinguish between two definitions of the term graduate: one reflecting traditional program completion in good standing (Traditional), and another using the statutory criteria from Workforce Innovation and Opportunity Act Sec. 116, Sec. 142, which counts individuals who do not complete the full program. The WIOA definition of graduate is “an enrollee that 1) receives a High School Diploma (HSD) or High School Equivalency (HSE), and/or 2) completes the requirements of a career technical training (CTT) program.”

Below is a summary of the overall findings from PY2023:

Average Graduation Rate:
- Traditional: 32%
- WIOA Definition: 38%
Average Cost Per Enrollee (Regardless of Length of Stay): $49,769.53
Average Cost Per Student Per Year (Average PY23 Headcount): $80,284.65
Average Total Cost Per Graduate:
- Traditional: $187,653
- WIOA Definition: $155,600
Job Corps participants earn $16,695 annually on average, post separation
Average of Highest Center Costs per Graduate (Traditional Data):
- The 10 least efficient programs average $512,800 dollars per graduate
- The top 50 least efficient programs average $319,085 per graduate
Average of Highest Center Costs per Graduate (WIOA Data):
- The 10 least efficient programs average $385,370 per graduate
- The top 50 least efficient programs average $252,285 per graduate

Read the full Job Corps Transparency Report.

MIL OSI USA News –

April 26, 2025

MIL-OSI USA: Shaheen Discusses New Hampshire’s Child Care Crisis in Merrimack; Highlights Trump’s Dangerous Staffing Cuts at Head Start and Fuel Assistance Programs; Concludes “Medicaid Impact Tour,” Holds Roundtable on Trump’s HHS Cuts at NAMI in Concord

US Senate News:

Source: United States Senator for New Hampshire Jeanne Shaheen

(Concord, NH) – Today, U.S. Senator Jeanne Shaheen (D-NH) visited the YMCA of Greater Nashua’s Merrimack Branch to discuss New Hampshire’s child care crisis. She then toured Community Action Partnership Hillsborough and Rockingham Counties’ (CAPHR) Opportunity Center in Manchester to highlight the Trump administration’s dangerous staffing cuts at Head Start and the Low Income Home Energy Program (LIHEAP). Later, Shaheen concluded her weeklong “Medicaid Impact Tour” and underscored the negative impact of $80 million in federal funding cuts from the U.S. Department of Health and Human Services (HHS) by holding a roundtable at the National Alliance on Mental Illness (NAMI) in Concord. Photos from today’s events can be found here.

At the YMCA of Greater Nashua’s Merrimack Branch, Shaheen highlighted the Granite State’s child care crisis and shortage of providers. She also toured the YMCA’s child care facility and heard firsthand from providers and leadership about the challenges they face and efforts to expand their reach in the community and to local businesses.

“Affordable, reliable child care is simply out of reach for far too many Granite State parents – options are limited at best and nonexistent at worst for countless families across the state – and this squeezes already tight family budgets,” said Senator Shaheen. “I was pleased to see firsthand the YMCA of Greater Nashua’s Merrimack Branch’s hard work to provide affordable child care services and to discuss some of the legislation I’ve championed that would help them and other New Hampshire child care providers expand their reach and address staffing shortages. I’m focused in the Senate on concrete ways that we can bring down the cost of living and give working families more breathing room.”

Senator Shaheen has been a leader in advocating for more affordable and accessible child care. At the YMCA, Shaheen highlighted her recent legislative efforts, including introducing the Child Care Availability and Affordability Act and the Child Care Workforce Act—bipartisan, bicameral legislation that together form a bold proposal to make child care more affordable and accessible by strengthening existing tax credits to lower child care costs and increase the supply of child care providers. She also discussed the Child and Dependent Care Tax Credit Enhancement Act that would permanently expand the Child and Dependent Care Tax Credit (CDCTC).

In Manchester, Shaheen visited and toured CAPHR’s new Opportunity Center. CAPHR provides Granite Staters and their families with access to services and programs like LIHEAP and Head Start. Shaheen also led a discussion with CAPHR leadership on the negative impact of the Trump administration’s recent cuts to staff that manage these two programs.

“I’m alarmed by Trump’s mass firings of federal employees who administer Head Start as well as staff who manage LIHEAP, and I’m worried about what that might mean for the Granite Staters who CAPHR serves,” said Senator Shaheen. “CAPHR relies on support from federal staff to keep programs that bring child care within reach for working families and those that help folks access critical fuel assistance—eliminating these programs isn’t an option. Why are Trump and Congressional Republicans trying to pass a massive tax cut for the wealthy even as they target these vital services for children and working families?”

Shaheen’s visit came as the Trump administration considers eliminating funding for Head Start and LIHEAP altogether—a move that would be devastating for the more than 30,000 Granite Staters who rely on LIHEAP for heating assistance and the many New Hampshire families who benefit from Head Start. Shaheen has been vocal in her calls for the Trump administration to reverse course on mass firings of federal employees responsible for administering both Head Start and LIHEAP.

Then in Concord, Shaheen led a roundtable discussion at NAMI to hear from health care leaders about the harmful consequences of the Trump administration’s decision to cut more than $80 million in federal funding from HHS that New Hampshire relies on to help communities address the substance use disorder and mental health crises.

“NAMI does tremendous work to help Granite Staters struggling with mental illness and substance use disorder– and still, they’re being affected by President Trump’s reckless, haphazard cuts to life-saving health services,” said Senator Shaheen. “Medicaid is the single largest payer for treatment of opioid and substance use disorders, so in addition to being hurt by Trump’s $80 million cut in HHS funding, folks who NAMI serve now also have to worry about their Medicaid benefits being cut down to nothing. We won’t stand for it.”

Senator Shaheen has led efforts to address the substance use and mental health crises. Earlier this month, Shaheen led the New Hampshire Congressional delegation in calling on HHS Secretary Robert F. Kennedy Jr. to immediately restore these funds to the Granite State. Shaheen has also been vocal in her disapproval of the confirmation of Robert F. Kennedy Jr. for HHS Secretary, including delivering remarks in opposition to his nomination on the Senate floor. Shaheen recently called on the Secretary to reverse drastic funding cuts to the Affordable Care Act Navigator program, which helps Americans access quality, affordable health insurance coverage, including for Medicaid and the Children’s Health Insurance Program.

The roundtable was also the conclusion of Shaheen’s weeklong “Medicaid Impact Tour.” Medicaid is the single largest payer for treatment of opioid and substance use disorder and many of the Granite Staters served by NAMI would face benefit cuts if Republicans were to make drastic cuts to Medicaid. Shaheen’s “Medicaid Impact Tour” included a roundtable on rural health in Berlin, a roundtable at the Public Partnership for Health in Laconia and a visit to Valley Regional Hospital in Claremont.

MIL OSI USA News –

April 26, 2025

MIL-OSI Canada: $1.8 Million in Community Airport Improvements to take Flight this Construction Season

Source: Government of Canada regional news

Released on April 25, 2025

Today, Highways Minister David Marit announced more than $1.8 million in infrastructure improvements at eight community airports, which will strengthen their aviation roles.

Through the Community Airport Partnership (CAP) program, the Ministry of Highways will commit $935,910 toward the projects and the airport operators will fund the remaining estimated $939,228. The work is to occur in the 2025 construction season.

“Air ambulances, firefighting and policing services, agriculture and other industries rely on local airports across Saskatchewan to meet the needs of businesses and communities,” Marit said. “These infrastructure investments position rural and northern communities for growth, while strengthening our great province.”

CAP invests in regional, community-owned airport upgrades to runways and taxiways, lighting, security fencing, navigational systems and other eligible projects.

“Thanks to this ongoing partnership with the provincial government, communities can make strategic infrastructure investments to improve their airports so they can continue to provide the key services that support our quality of life and contribute to our economy,” Saskatchewan Aviation Council President Janet Keim said.

A project is funded on a 50/50 cost-sharing basis between the approved recipient and the provincial government to a maximum $275,000. Any additional costs are the responsibility of the funding recipient.

Airport operators and the provincial funding allocated toward their projects for 2025-26 are:

Airport Operator	Project	Estimated Total Cost	Provincial Contribution	Airport Contribution
Town of Assiniboia	Rehabilitation Taxiway / Air Ambulance Loading Area	$90,865	$45,433	$45,432
Town of Esterhazy	Runway and Apron Revitalization	$159,000	$79,500	$79,500
RM of Eye Hill No. 382	RM of Eye Hill Municipal Airport Rehabilitation Project 2025	$127,365	$63,683	$63,682
Town of La Ronge	Airport Drainage System Maintenance / Improvements (Phase 2)	$550,000	$275,000	$275,000
Moose Jaw Municipal Airport Authority	Crack Filling	$40,000	$20,000	$20,000
Town of Nipawin	Airport Runway and Taxi Rehab	$320,000	$160,000	$160,000
Town of Tisdale	Phase 2 Resurface Runway	$503,320	$250,000	$253,320
City of Yorkton	Crack Sealing and South Runway Joint Repair	$84,588	$42,294	$42,294
Totals		$1,875,138	$935,910	$939,228

-30-

For more information, contact:

MIL OSI Canada News –

April 26, 2025

MIL-OSI Asia-Pac: Telecom Regulatory Authority of India (TRAI)

Source: Government of India

Telecom Regulatory Authority of India (TRAI)

Meeting of Joint Committee of Regulators (JCoR)

Posted On: 25 APR 2025 5:49PM by PIB Delhi

TRAI convened a meeting of the Joint Committee of Regulators (JCOR) on 25^thApril, 2025, at its headquarters in New Delhi to deliberate issues needing cross-sectoral regulatory collaboration and formulate collaborative measures including dealing with unsolicited commercial communication (UCC)/ spam and fraudulent communications. Members of the JCoR, including representatives from RBI, IRDAI, PFRDA, SEBI, MoCA, and MeitY, participated in the meeting. Additionally, DoT, and MHA representatives attended the meeting as special invitees.

The Joint Committee of Regulators (JCoR), an initiative of TRAI, was established to foster collaborative efforts among sectoral regulators from the telecommunication, IT, Consumer Affairs, and financial and insurance sectors to deliberate cross sectoral regulatory issues in the digital world and work collaboratively on adopting appropriate regulatory measures. Members of the committee have since leveraged this platform to reinforce their regulatory framework and ensure its effective implementation. The JCoR has provided a very useful collaborative forum to address the issue of UCC & regulatory challenges in the digital era and enhance regulatory frameworks to control UCC through collective effort.

In his opening address, TRAI Chairman Shri Anil Kumar Lahoti highlighted the critical need for a collaborative approach to combat spam messages and calls creating inconvenience and defrauding the citizens, especially, the senior citizens, the progress made by JCOR in this regard and the challenges ahead.

The following are some important items deliberated in the meeting:

Modalities for implementation of 1600 series numbers, allocated specially for making transactional and service voice calls by the entities belonging to the government and financial sector, were discussed. The committee members agreed to take up the issue with entities within their jurisdiction for expediting its implementation in a time bound manner and regular monitoring. The CoAI also made a presentation before the committee regarding various solutions that can offer an entity one 1600 series number CLI to be presented to the recipients across all the TSPs and LSAs in the country.
Modalities for onboarding of senders of commercial communication on Digital Consent Acquisition (DCA) platform were deliberated. JCOR members agreed to engage with the senders/Principal Entities (PEs) within their jurisdiction to onboard them on DCA.
During the deliberations, I4C discussed various measures to counter fraudulent communication and the problem of Digital Arrest scams. In this regard, measures such as deletion of unused message headers and content templates to avoid their misuse by spammers, prompt action on fraudulent SMS headers, blocking of the Mobile Numbers/IMEI utilized in sending fraudulent messages etc. were discussed. The members agreed to work further on modalities for implementation of the same.
The issue of spam and scam through OTT and RCS communication platforms were discussed. MeitY will engage with the stakeholders in this regard to take measures analogues to those for conventional telecommunication.

The JCOR members agreed to further strengthen the collaborative efforts to address these issues collectively so as to increase cross sectoral collaboration and also protect consumers from the harms of spam and fraud while ensuring a more secure and efficient telecom commercial communication ecosystem.

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Samrat/Allen

(Release ID: 2124347) Visitor Counter : 58

MIL OSI Asia Pacific News –

April 26, 2025

MIL-OSI Asia-Pac: Under Rozgar Mela, PM to distribute more than 51,000 appointment letters to newly appointed youth in Government departments and organisations on 26th April

Source: Government of India

Posted On: 25 APR 2025 6:55PM by PIB Delhi

Prime Minister Shri Narendra Modi will distribute more than 51,000 appointment letters to newly appointed youth in various Government departments and organisations on 26th April, 2025 at around 11 AM through video conferencing. He will also address the gathering on the occasion.

In line with Prime Minister’s commitment to accord highest priority to employment generation, the 15th Rozgar Mela will be held at 47 locations across the country. It will provide meaningful opportunities to the youth for their empowerment and effectively contributing to national development.

The new recruits, selected from across the country will be joining the Central Government in various Ministries/Departments including Department of Revenue, Ministry of Personnel and Public Grievances and Pensions, Ministry of Home Affairs, Department of Posts, Department of Higher Education, Ministry of Railways, Ministry of Labour & Employment among others.

***

MJPS/SR

(Release ID: 2124381) Visitor Counter : 129

MIL OSI Asia Pacific News –

April 26, 2025

MIL-OSI Asia-Pac: CBIC introduces several trade facilitative measures relating to transhipment and air cargo

Source: Government of India

Posted On: 25 APR 2025 5:02PM by PIB Delhi

In line with the announcement in the Budget Speech 2025-26 by the Union Minister for Finance and Corporate Affairs, on facilitating upgradation of infrastructure and warehousing for air cargo including high value perishable horticulture produce and streamlining the cargo screening and customs protocols and making it user-friendly, the Central Board of Indirect Taxes and Customs (CBIC) has introduced several trade facilitative measures in Air cargo in particular and transhipment movement in general.

For logistical convenience or other business decisions, Logistics operators sometimes undertake movement of imported cargo during the customs clearance between Customs areas (Ports/Container Freight Stations/Inland Container Depots etc.) without payment of duty by following transhipment procedure under The Customs Act, 1962. Since old times, transhipment permit fee is required to be paid for every transhipment permit. Over a period of time, due to increase in volume of trade, including transhipped cargo, some experienced delay in the process. As a measure for ease of business, CBIC has examined this matter and with effect from 24^th April 2025, CBIC has decided to waive transhipment permit fee henceforth for all the transhipment movements. Changes to the Regulations has been issued vide Notification No. 30/2025-Cus (N.T) dated 24^th April 2025 (https://www.cbic.gov.in/f2d0927b-945d-411c-8c34-65d272a6d047) in this regard.

Further, with increase in the volume of air cargo, need was felt by the trade for temporary removal of Unit Load Devices (ULD) outside Customs Area in certain cases of high-value or perishable cargo. Currently, the cargo is being off-loaded in the Air cargo Complexes from ULD before the clearance. As a first step towards streamlining Customs Protocols, and aligning with the international best practices for movement of Unit Load Devices (ULD) outside Customs Area, CBIC has stipulated simplified and harmonised procedure for temporary import of ULDs on the lines of procedure already stipulated for marine containers being handled through the seaports since 2005.

With this simplified procedure, ULDs/air containers could also be imported temporarily outside the Customs area on execution of a Continuity Bond by the air carriers/air console agents, who take responsibility to export back within the specified time period. Earlier, it required the importer of the goods to under the responsibility of exporting the ULDs/air containers back, in case of such temporary import. It is clarified that, the option of importer taking up the responsibility for re-export still exists, if he opts so.

It is further to inform that, the facility of ‘All-India National Transhipment Bond’ at air cargo complexes is operational since 2022. This facility has been intended to avoid multiplicity of the bonds that are submitted by airlines at multiple Customs stations for transshipment of import cargo. In addition, Online filing of Transhipment application has also been enabled in ICEGATE, obviating the need for visiting Service Centre at the Air cargo.

Board Circular No. 15/2025-Customs dated 25^th April 2025 may be referred to, for more information.

Above measures are aimed easing of compliances and facilitating trade at Air cargo complexes. The Airlines, Console Agents or other stakeholders are encouraged to use the above facilities.

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NB/KMN

(Release ID: 2124318) Visitor Counter : 49

MIL OSI Asia Pacific News –

April 26, 2025

MIL-OSI: Meridian Corporation Reports First Quarter 2025 Results and Announces a Quarterly Dividend of $0.125 per Common Share

Source: GlobeNewswire (MIL-OSI)

MALVERN, Pa., April 25, 2025 (GLOBE NEWSWIRE) — Meridian Corporation (Nasdaq: MRBK) today reported:

	Three Months Ended
(Dollars in thousands, except per share data)((Unaudited)	March 31, 2025		December 31, 2024		March 31, 2024
Income:
Net income	$	2,399	$	5,600	$	2,676
Diluted earnings per common share	$	0.21	$	0.49	$	0.24
Pre-provision net revenue (PPNR) ⁽¹⁾	$	8,357	$	11,167	$	6,419
(1) See Non-GAAP reconciliation in the Appendix

Net income for the quarter ended March 31, 2025 was $2.4 million, or $0.21 per diluted share.
Pre-provision net revenue¹ for the quarter was $8.4 million, up $1.9 million or 30.2% from 1Q 2024.
Net interest margin was 3.46% for the first quarter of 2025, with a loan yield of 7.19%.
Return on average assets and return on average equity for the first quarter of 2025 were 0.40% and 5.57%, respectively.
Total assets at March 31, 2025 were $2.5 billion, compared to $2.4 billion at December 31, 2024 and $2.3 billion at March 31, 2024.
Commercial loans, excluding leases, increased $49.5 million, or 3% for the quarter.
First quarter deposit growth was $123.4 million, or 6%.
Non-interest-bearing deposits were up $82.6 million or 34%, quarter over quarter.
On April 24, 2025, the Board of Directors declared a quarterly cash dividend of $0.125 per common share, payable May 19, 2025 to shareholders of record as of May 12, 2025.

Christopher J. Annas, Chairman and CEO commented:

Meridian’s first quarter 2025 earnings of $2.4 million were slightly below the first quarter 2024 net income of $2.7 million however PPNR was up 30%, reflecting overall healthy growth in our business units and good expense control. Our earnings were negatively affected by higher provisioning resulting mainly from distressed SBA loans, which have been impacted by the dramatic rate rise. The remediation process for SBA loans is lengthy due to procedural requirements, which we follow diligently to assure the government guaranty, but we are making progress. On a positive note, our net interest margin was 3.46% and has shown consistent improvement over the last four quarters.

Loan growth in the first quarter was 12% annualized (minus expected lease paydowns) and all commercial groups contributed. The Delaware Valley region is plagued by a lack of homes for sale, so construction and other residential building is in demand. Our commercial/industrial lending has benefited from disruption in a recent local bank combination, from where we hired a senior lender with a deep list of contacts throughout the region. We expect many opportunities from this individual and his future hires.

Meridian Wealth Partners continued its strong performance with pre-tax income of $726 thousand for the quarter. A slight increase in assets under management combined with overall better fee percentages contributed to the gain. We are poised for better growth in this segment as our expanded loan customer base provides referral business, and with the recent hiring of a senior wealth professional to help focus on other opportunities.

The mortgage group had a larger pre-tax loss in 1Q25 vs 1Q24, mainly due to lower volume and a lesser loan officer count. The first quarter is seasonally weaker, but we are encouraged by the forecast for greater home inventory in both our Delaware Valley and Maryland markets. That has been a much bigger factor for loan originations than mortgage rates.

Our solid growth in PPNR has enabled us to manage the spike in non-performing loans, as we work intensely to remediate these credits. The growth in first quarter loan volume and expansion in net interest margin should continue to help drive further improvement in profitability.

Select Condensed Financial Information

	As of or for the three months ended (Unaudited)
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
	(Dollars in thousands, except per share data)
Income:
Net income	$	2,399		$	5,600		$	4,743		$	3,326		$	2,676
Basic earnings per common share		0.21			0.50			0.43			0.30			0.24
Diluted earnings per common share		0.21			0.49			0.42			0.30			0.24
Net interest income		19,776			19,299			18,242			16,846			16,609

Balance Sheet:
Total assets	$	2,528,586		$	2,385,867		$	2,387,721		$	2,351,584		$	2,292,923
Loans, net of fees and costs		2,071,675			2,030,437			2,008,396			1,988,535			1,956,315
Total deposits		2,128,742			2,005,368			1,978,927			1,915,436			1,900,696
Non-interest bearing deposits		323,485			240,858			237,207			224,040			220,581
Stockholders’ equity		173,266			171,522			167,450			162,382			159,936

Balance Sheet Average Balances:
Total assets	$	2,420,571		$	2,434,270		$	2,373,261		$	2,319,295		$	2,269,047
Total interest earning assets		2,330,224			2,342,651			2,277,523			2,222,177			2,173,212
Loans, net of fees and costs		2,039,676			2,029,739			1,997,574			1,972,740			1,944,187
Total deposits		2,036,208			2,043,505			1,960,145			1,919,954			1,823,523
Non-interest bearing deposits		244,161			259,118			246,310			229,040			233,255
Stockholders’ equity		174,734			171,214			165,309			162,119			159,822

Performance Ratios (Annualized):
Return on average assets		0.40	%		0.92	%		0.80	%		0.58	%		0.47	%
Return on average equity		5.57	%		13.01	%		11.41	%		8.25	%		6.73	%

Income Statement – First Quarter 2025 Compared to Fourth Quarter 2024

First quarter net income decreased $3.2 million, or 57.2%, to $2.4 million due to decreased non-interest income as the prior quarter included a $4.0 million gain on sale of MSR’s and a $317 thousand gain on sale of OREO, partially offset by a $1.0 million charge for early lease termination. The first quarter provision for credit losses increased over the prior quarter by $1.6 million. Net interest income increased $477 thousand and non-interest expenses decreased $2.7 million. Detailed explanations of the major categories of income and expense follow below.

Net Interest income

Interest income decreased $869 thousand quarter-over-quarter on a tax equivalent basis, driven by both two less days in the period as well as a lower level of average earning assets, which decreased by $12.4 million. On a rate basis, the yield on earnings assets increased 2 basis points.

Average total loans, excluding residential loans for sale, increased $10.0 million. The largest drivers of this increase were commercial, commercial real estate, and small business loans which on a combined basis increased $21.2 million on average, partially offset by a decrease in average leases of $10.6 million. Home equity, residential real estate, consumer and other loans held in portfolio decreased on a combined basis $602 thousand on average.

Total interest expense decreased $1.3 million, quarter-over-quarter, also driven by two fewer days in the period and a lower volume of time deposits and borrowings. On a rate basis, all deposit types experienced a decrease in the cost, with the overall cost of deposits dropping 21 basis points. Interest expense on total deposits decreased $1.5 million and interest expense on borrowings decreased $139 thousand. During the period, interest-bearing checking accounts and money market accounts increased $9.9 million and $37.9 million on average, respectively, while time deposits decreased $40.2 million on average. Borrowings decreased $6.7 million on average.

Overall the net interest margin increased 17 basis points to 3.46% as the cost of funds declined and the yield on earning assets increased slightly.

Provision for Credit Losses

The overall provision for credit losses for the first quarter increased $1.6 million to $5.2 million, from $3.6 million in the fourth quarter. The first quarter provision increased due to an increase of $7.1 million in non-performing loans which led to an increase of $2.3 million in specific reserves on such loans. SBA loans make up $6.9 million of these additional non-performing loans, of which $3.8 million are guaranteed by the SBA. The increase in provision was also partially impacted by unfavorable changes in certain macro-economic factors used in the model due to current economic and market uncertainty.

Non-interest income

The following table presents the components of non-interest income for the periods indicated:

	Three Months Ended
(Dollars in thousands)	March 31, 2025			December 31, 2024			$ Change			% Change
Mortgage banking income	$	3,393		$	5,516		$	(2,123	)	(38.5)%
Wealth management income		1,535			1,527			8		0.5	%
SBA loan income		748			1,143			(395	)	(34.6)%
Earnings on investment in life insurance		222			224			(2	)	(0.9)%
Net (loss) gain on sale of MSRs		(52	)		3,992			(4,044	)	(101.3)%
Gain on sale of OREO		—			317			(317	)	(100.0)%
Net change in the fair value of derivative instruments		149			(146	)		295		(202.1)%
Net change in the fair value of loans held-for-sale		102			(163	)		265		(162.6)%
Net change in the fair value of loans held-for-investment		170			(552	)		722		(130.8)%
Net (loss) gain on hedging activity		21			192			(171	)	(89.1)%
Other		1,036			1,229			(193	)	(15.7)%
Total non-interest income	$	7,324		$	13,279		$	(5,955	)	(44.8)%

Total non-interest income decreased $6.0 million, or 44.8%, quarter-over-quarter largely due to recognizing a gain on sale of MSRs of $4.0 million in the prior quarter, combined with a $2.1 million decline in mortgage banking income, and a change in gains of $171 thousand in hedging activity. These declines in income were partially offset by favorable derivative and loan related fair value changes. Mortgage loan sales decreased $68.1 million or 31.5% quarter over quarter driving lower gain on sale income in addition to a lower overall margin, leading to the lower level of mortgage banking income.

SBA loan income decreased $395 thousand due to a lower level of SBA loan sales. SBA loans sold for the quarter-ended March 31, 2025 totaled $12.1 million, down $7.8 million, or 39.1%, compared to the quarter-ended December 31, 2024. The gross margin on SBA sales was 8.7% for the quarter, up from 7.5% for the previous quarter.

Non-interest expense

The following table presents the components of non-interest expense for the periods indicated:

	Three Months Ended
(Dollars in thousands)	March 31, 2025		December 31, 2024		$ Change			% Change
Salaries and employee benefits	$	11,385	$	12,429	$	(1,044	)	(8.4)%
Occupancy and equipment		1,338		2,270		(932	)	(41.1)%
Professional fees		763		1,134		(371	)	(32.7)%
Data processing and software		1,479		1,553		(74	)	(4.8)%
Advertising and promotion		779		839		(60	)	(7.2)%
Pennsylvania bank shares tax		269		243		26		10.7	%
Other		2,730		2,943		(213	)	(7.2)%
Total non-interest expense	$	18,743	$	21,411	$	(2,668	)	(12.5)%

Overall salaries and benefits decreased $1.0 million. Bank and wealth segments combined decreased $245 thousand, while the mortgage segment decreased $799 thousand. Mortgage segment salaries, commissions, and employee benefits expense are impacted by volume and decreased commensurate with the lower levels of originations, which were down $63.5 million from the prior quarter. Occupancy and equipment expense decreased $932 thousand, net, due to fees, credits and other disposal costs for the early termination of the Blue Bell lease that occurred in the prior quarter. Professional fees decreased $371 thousand over the prior period mainly due to the results of cost control efforts on certain internal audit fees, legal fees and consulting fees, while other non-interest expense decreased $213 thousand due to a decline in certain business development costs, other loan related fees, and OREO related expenses.

Balance Sheet – March 31, 2025 Compared to December 31, 2024

Total assets increased $142.7 million, or 6.0%, to $2.5 billion as of March 31, 2025 from $2.4 billion at December 31, 2024. Interest-earning cash increased $91.8 million, or 419.7%, to $113.6 million as of March 31, 2025 from December 31, 2024, as a temporary deposit of $103 million from a long standing customer was on hand for several weeks. In addition, loan growth contributed to the overall increase in total assets over this period.

Portfolio loan growth was $42.0 million, or 2.1% quarter-over-quarter. The portfolio growth was generated from commercial mortgage loans which increased $21.2 million, or 2.6%, construction loans which increased $18.3 million, or 7.1%, small business loans which increased $5.3 million, or 3.4%, and commercial & industrial loans which increased $4.6 million, or 1.3%. Lease financings decreased $9.2 million, or 12.1% from December 31, 2024, partially offsetting the above noted loan growth, but this decline was expected as we continue to refocus away from lease originations.

Total deposits increased $123.4 million, or 6.2% quarter-over-quarter, led by non-interest bearing deposit growth of $82.6 million. Non-interest bearing deposits benefited from a late quarter deposit of $103 million from a long standing customer that sold a business. This deposit was on hand for several weeks. Money market accounts and savings accounts also increased a combined $34.3 million, while interest bearing demand deposits increased $19.6 million, and time deposits decreased $13.1 million from largely wholesale efforts. Overall borrowings increased $15.1 million, or 12.1% quarter-over-quarter.

Total stockholders’ equity increased by $1.7 million from December 31, 2024, to $173.3 million as of March 31, 2025. Changes to equity for the current quarter included net income of $2.4 million, less dividends paid of $1.4 million, offset by a decrease of $529 thousand in other comprehensive income. The Community Bank Leverage Ratio for the Bank was 9.30% at March 31, 2025.

Asset Quality Summary

Non-performing loans increased $7.1 million to $52.2 million at March 31, 2025 compared to $45.1 million at December 31, 2024. Included in non-performing loans are $19.1 million of SBA loans of which $9.9 million, or 53%, are guaranteed by the SBA. The SBA portfolio was subject to the Fed’s rapid rate increase and $15.0 million, or 80% of these non-performing loans originated in 2020-2021 where their rates rose over 500 basis points.

The ratio of non-performing loans to total loans increased 30 bps to 2.49% as of March 31, 2025, from 2.19% as of December 31, 2024. The increase in non-performing loans was led by a $6.9 million increase in non-performing SBA loans, and $881 thousand in leases.

Net charge-offs as a % of total average loans of 0.14% for the quarter ended March 31, 2025, decreased from 0.34% for the quarter ended December 31, 2024. Net charge-offs decreased to $2.8 million for the quarter ended March 31, 2025, compared to net charge-offs of $7.1 million for the quarter ended December 31, 2024. First quarter charge-offs consisted of $851 thousand on a protracted commercial advertising loan relationship, $738 thousand related to construction loans, $553 thousand of small ticket equipment leases which are charged-off after becoming more than 120 days past due, and $277 thousand in SBA loans. Overall there were recoveries of $175 thousand, largely related to leases and SBA loans.

The ratio of allowance for credit losses to total loans held for investment was 1.01% as of March 31, 2025, an increase from the coverage ratio of 0.91% as of December 31, 2024 due largely to the increase in specific reserves on non-performing loans in the quarter discussed above. As of March 31, 2025 there were specific reserves of $5.0 million against individually evaluated loans, an increase of $2.3 million from $2.7 million in specific reserves as of December 31, 2024. The specific reserve increase over the prior quarter was led by a $1.6 million increase in specific reserves on SBA loans, as well as increases of $535 thousand in commercial real estate loan specifics reserves and a $174 thousand increase in commercial loan specific reserves.

About Meridian Corporation

Meridian Bank, the wholly owned subsidiary of Meridian Corporation, is an innovative community bank serving Pennsylvania, New Jersey, Delaware and Maryland. Through its 17 offices, including banking branches and mortgage locations, Meridian offers a full suite of financial products and services. Meridian specializes in business and industrial lending, retail and commercial real estate lending, electronic payments, and wealth management solutions through Meridian Wealth Partners. Meridian also offers a broad menu of high-yield depository products supported by robust online and mobile access. For additional information, visit our website at www.meridianbanker.com. Member FDIC.

“Safe Harbor” Statement

In addition to historical information, this press release may contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements with respect to Meridian Corporation’s strategies, goals, beliefs, expectations, estimates, intentions, capital raising efforts, financial condition and results of operations, future performance and business. Statements preceded by, followed by, or that include the words “may,” “could,” “should,” “pro forma,” “looking forward,” “would,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” or similar expressions generally indicate a forward-looking statement. These forward-looking statements involve risks and uncertainties that are subject to change based on various important factors (some of which, in whole or in part, are beyond Meridian Corporation’s control). Numerous competitive, economic, regulatory, legal and technological factors, risks and uncertainties that could cause actual results to differ materially include, without limitation, credit losses and the credit risk of our commercial and consumer loan products; changes in the level of charge-offs and changes in estimates of the adequacy of the allowance for credit losses, or ACL; cyber-security concerns; rapid technological developments and changes; increased competitive pressures; changes in spreads on interest-earning assets and interest-bearing liabilities; changes in general economic conditions and conditions within the securities markets; escalating tariff and other trade policies and the resulting impacts on market volatility and global trade; unanticipated changes in our liquidity position; unanticipated changes in regulatory and governmental policies impacting interest rates and financial markets; legislation affecting the financial services industry as a whole, and Meridian Corporation, in particular; changes in accounting policies, practices or guidance; developments affecting the industry and the soundness of financial institutions and further disruption to the economy and U.S. banking system; among others, could cause Meridian Corporation’s financial performance to differ materially from the goals, plans, objectives, intentions and expectations expressed in such forward-looking statements. Meridian Corporation cautions that the foregoing factors are not exclusive, and neither such factors nor any such forward-looking statement takes into account the impact of any future events. All forward-looking statements and information set forth herein are based on management’s current beliefs and assumptions as of the date hereof and speak only as of the date they are made. For a more complete discussion of the assumptions, risks and uncertainties related to our business, you are encouraged to review Meridian Corporation’s filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2024 and subsequently filed quarterly reports on Form 10-Q and current reports on Form 8-K that update or provide information in addition to the information included in the Form 10-K and Form 10-Q filings, if any. Meridian Corporation does not undertake to update any forward-looking statement whether written or oral, that may be made from time to time by Meridian Corporation or by or on behalf of Meridian Bank.

MERIDIAN CORPORATION AND SUBSIDIARIES FINANCIAL RATIOS (Unaudited) (Dollar amounts and shares in thousands, except per share amounts)

	Three Months Ended
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Earnings and Per Share Data:
Net income	$	2,399		$	5,600		$	4,743		$	3,326		$	2,676
Basic earnings per common share	$	0.21		$	0.50		$	0.43		$	0.30		$	0.24
Diluted earnings per common share	$	0.21		$	0.49		$	0.42		$	0.30		$	0.24
Common shares outstanding		11,285			11,240			11,229			11,191			11,186

Performance Ratios:
Return on average assets ⁽²⁾		0.40	%		0.92	%		0.80	%		0.58	%		0.47	%
Return on average equity ⁽²⁾		5.57			13.01			11.41			8.25			6.73
Net interest margin (tax-equivalent) ⁽²⁾		3.46			3.29			3.20			3.06			3.09
Yield on earning assets (tax-equivalent) ⁽²⁾		6.83			6.81			7.06			6.98			6.90
Cost of funds ⁽²⁾		3.56			3.71			4.05			4.10			4.00
Efficiency ratio		69.16	%		65.72	%		70.67	%		72.89	%		73.90	%

Asset Quality Ratios:
Net charge-offs (recoveries) to average loans		0.14	%		0.34	%		0.11	%		0.20	%		0.12	%
Non-performing loans to total loans		2.49			2.19			2.20			1.84			1.93
Non-performing assets to total assets		2.07			1.90			1.97			1.68			1.74
Allowance for credit losses to:
Total loans and other finance receivables		1.01			0.91			1.09			1.09			1.18
Total loans and other finance receivables (excluding loans at fair value) ⁽¹⁾		1.01			0.91			1.10			1.10			1.19
Non-performing loans		39.90	%		40.86	%		48.66	%		57.66	%		60.59	%

Capital Ratios:
Book value per common share	$	15.35		$	15.26		$	14.91		$	14.51		$	14.30
Tangible book value per common share	$	15.03		$	14.93		$	14.58		$	14.17		$	13.96
Total equity/Total assets		6.85	%		7.19	%		7.01	%		6.91	%		6.98	%
Tangible common equity/Tangible assets – Corporation ⁽¹⁾		6.72			7.05			6.87			6.76			6.82
Tangible common equity/Tangible assets – Bank ⁽¹⁾		8.61			9.06			8.95			8.85			8.93
Tier 1 leverage ratio – Bank		9.30			9.21			9.32			9.33			9.42
Common tier 1 risk-based capital ratio – Bank		10.15			10.33			10.17			9.84			9.87
Tier 1 risk-based capital ratio – Bank		10.15			10.33			10.17			9.84			9.87
Total risk-based capital ratio – Bank		11.14	%		11.20	%		11.22	%		10.84	%		10.95	%
(1) See Non-GAAP reconciliation in the Appendix
(2) Annualized

MERIDIAN CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Dollar amounts and shares in thousands, except per share amounts)

	Three Months Ended
	March 31, 2025			December 31, 2024			March 31, 2024
Interest income:
Loans and other finance receivables, including fees	$	36,549		$	37,229		$	35,339
Securities – taxable		1,693			1,684			1,251
Securities – tax-exempt		313			314			325
Cash and cash equivalents		613			801			300
Total interest income		39,168			40,028			37,215
Interest expense:
Deposits		16,868			18,341			17,392
Borrowings and subordinated debentures		2,524			2,388			3,214
Total interest expense		19,392			20,729			20,606
Net interest income		19,776			19,299			16,609
Provision for credit losses		5,212			3,572			2,866
Net interest income after provision for credit losses		14,564			15,727			13,743
Non-interest income:
Mortgage banking income		3,393			5,516			3,634
Wealth management income		1,535			1,527			1,317
SBA loan income		748			1,143			986
Earnings on investment in life insurance		222			224			207
Net (loss) gain on sale of MSRs		(52	)		3,992			—
Gain on sale of OREO		—			317			—
Net change in the fair value of derivative instruments		149			(146	)		75
Net change in the fair value of loans held-for-sale		102			(163	)		(2	)
Net change in the fair value of loans held-for-investment		170			(552	)		(175	)
Net (loss) gain on hedging activity		21			192			(19	)
Other		1,036			1,229			1,961
Total non-interest income		7,324			13,279			7,984
Non-interest expense:
Salaries and employee benefits		11,385			12,429			10,573
Occupancy and equipment		1,338			2,270			1,233
Professional fees		763			1,134			1,498
Data processing and software		1,479			1,553			1,532
Advertising and promotion		779			839			748
Pennsylvania bank shares tax		269			243			274
Other		2,730			2,943			2,316
Total non-interest expense		18,743			21,411			18,174
Income before income taxes		3,145			7,595			3,553
Income tax expense		746			1,995			877
Net income	$	2,399		$	5,600		$	2,676

Basic earnings per common share	$	0.21		$	0.50		$	0.24
Diluted earnings per common share	$	0.21		$	0.49		$	0.24

Basic weighted average shares outstanding		11,205			11,158			11,088
Diluted weighted average shares outstanding		11,446			11,375			11,201

MERIDIAN CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CONDITION (Unaudited) (Dollar amounts and shares in thousands, except per share amounts)

	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Assets:
Cash and due from banks	$	16,976		$	5,598		$	12,542		$	8,457		$	8,935
Interest-bearing deposits at other banks		113,620			21,864			19,805			15,601			14,092
Federal funds sold		629			—			—			—			—
Cash and cash equivalents		131,225			27,462			32,347			24,058			23,027
Securities available-for-sale, at fair value		185,221			174,304			171,568			159,141			150,996
Securities held-to-maturity, at amortized cost		32,720			33,771			33,833			35,089			35,157
Equity investments		2,126			2,086			2,166			2,088			2,092
Mortgage loans held for sale, at fair value		28,047			32,413			46,602			54,278			29,124
Loans and other finance receivables, net of fees and costs		2,071,675			2,030,437			2,008,396			1,988,535			1,956,315
Allowance for credit losses		(20,827	)		(18,438	)		(21,965	)		(21,703	)		(23,171	)
Loans and other finance receivables, net of the allowance for credit losses		2,050,848			2,011,999			1,986,431			1,966,832			1,933,144
Restricted investment in bank stock		8,369			7,753			8,542			10,044			8,560
Bank premises and equipment, net		12,028			12,151			12,807			13,114			13,451
Bank owned life insurance		29,935			29,712			29,489			29,267			29,051
Accrued interest receivable		10,345			9,958			10,012			9,973			9,864
Other real estate owned		159			159			1,862			1,862			1,703
Deferred income taxes		5,136			4,669			3,537			3,950			4,339
Servicing assets		4,284			4,382			4,364			11,341			11,573
Servicing assets held for sale		—			—			6,609			—			—
Goodwill		899			899			899			899			899
Intangible assets		2,716			2,767			2,818			2,869			2,920
Other assets		24,528			31,382			33,835			26,779			37,023
Total assets	$	2,528,586		$	2,385,867		$	2,387,721		$	2,351,584		$	2,292,923

Liabilities:
Deposits:
Non-interest bearing	$	323,485		$	240,858		$	237,207		$	224,040		$	220,581
Interest bearing
Interest checking		161,055			141,439			133,429			130,062			121,204
Money market and savings deposits		947,795			913,536			822,837			787,479			797,525
Time deposits		696,407			709,535			785,454			773,855			761,386
Total interest-bearing deposits		1,805,257			1,764,510			1,741,720			1,691,396			1,680,115
Total deposits		2,128,742			2,005,368			1,978,927			1,915,436			1,900,696
Borrowings		139,590			124,471			144,880			187,260			145,803
Subordinated debentures		49,761			49,743			49,928			49,897			49,867
Accrued interest payable		7,404			6,860			7,017			7,709			8,350
Other liabilities		29,823			27,903			39,519			28,900			28,271
Total liabilities		2,355,320			2,214,345			2,220,271			2,189,202			2,132,987

Stockholders’ equity:
Common stock		13,288			13,243			13,232			13,194			13,189
Surplus		81,724			81,545			81,002			80,639			80,487
Treasury stock		(26,079	)		(26,079	)		(26,079	)		(26,079	)		(26,079	)
Unearned common stock held by employee stock ownership plan		(1,006	)		(1,006	)		(1,204	)		(1,204	)		(1,204	)
Retained earnings		112,952			111,961			107,765			104,420			102,492
Accumulated other comprehensive loss		(7,613	)		(8,142	)		(7,266	)		(8,588	)		(8,949	)
Total stockholders’ equity		173,266			171,522			167,450			162,382			159,936
Total liabilities and stockholders’ equity	$	2,528,586		$	2,385,867		$	2,387,721		$	2,351,584		$	2,292,923

MERIDIAN CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND SEGMENT INFORMATION (Unaudited) (Dollar amounts and shares in thousands, except per share amounts)

	Three Months Ended
	March 31, 2025		December 31, 2024		September 30, 2024		June 30, 2024		March 31, 2024
Interest income	$	39,168	$	40,028	$	40,319	$	38,465	$	37,215
Interest expense		19,392		20,729		22,077		21,619		20,606
Net interest income		19,776		19,299		18,242		16,846		16,609
Provision for credit losses		5,212		3,572		2,282		2,680		2,866
Non-interest income		7,324		13,279		10,831		9,244		7,984
Non-interest expense		18,743		21,411		20,546		19,018		18,174
Income before income tax expense		3,145		7,595		6,245		4,392		3,553
Income tax expense		746		1,995		1,502		1,066		877
Net Income	$	2,399	$	5,600	$	4,743	$	3,326	$	2,676

Basic weighted average shares outstanding		11,205		11,158		11,110		11,096		11,088
Basic earnings per common share	$	0.21	$	0.50	$	0.43	$	0.30	$	0.24

Diluted weighted average shares outstanding		11,446		11,375		11,234		11,150		11,201
Diluted earnings per common share	$	0.21	$	0.49	$	0.42	$	0.30	$	0.24

	Segment Information
	Three Months Ended March 31, 2025												Three Months Ended March 31, 2024
(dollars in thousands)	Bank			Wealth			Mortgage			Total			Bank			Wealth			Mortgage			Total
Net interest income	$	19,706		$	9		$	61		$	19,776		$	16,592		$	(6	)	$	23		$	16,609
Provision for credit losses		5,212			—			—			5,212			2,866			—			—			2,866
Net interest income after provision		14,494			9			61			14,564			13,726			(6	)		23			13,743
Non-interest income		1,912			1,535			3,877			7,324			1,874			1,317			4,793			7,984
Non-interest expense		12,758			818			5,167			18,743			12,060			833			5,281			18,174
Income (loss) before income taxes	$	3,648		$	726		$	(1,229	)	$	3,145		$	3,540		$	478		$	(465	)	$	3,553
Efficiency ratio		59	%		53	%		131	%		69	%		65	%		64	%		110	%		74	%

MERIDIAN CORPORATION AND SUBSIDIARIES
APPENDIX: NON-GAAP MEASURES (Unaudited)
(Dollar amounts and shares in thousands, except per share amounts)

Meridian believes that non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts. The non-GAAP disclosure have limitations as an analytical tool, should not be viewed as a substitute for performance and financial condition measures determined in accordance with GAAP, and should not be considered in isolation or as a substitute for analysis of Meridian’s results as reported under GAAP, nor is it necessarily comparable to non-GAAP performance measures that may be presented by other companies.

	Pre-provision Net Revenue Reconciliation
	Three Months Ended
(Dollars in thousands, except per share data, Unaudited)	March 31, 2025		December 31, 2024		March 31, 2024
Income before income tax expense	$	3,145	$	7,595	$	3,553
Provision for credit losses		5,212		3,572		2,866
Pre-provision net revenue	$	8,357	$	11,167	$	6,419

	Pre-Provision Net Revenue Reconciliation
	Three Months Ended
(Dollars in thousands, except per share data, Unaudited)	March 31, 2025			December 31, 2024		March 31, 2024
Bank	$	8,860		$	8,205	$	6,406
Wealth		726			571		478
Mortgage		(1,229	)		2,391		(465	)
Pre-provision net revenue	$	8,357		$	11,167	$	6,419

	Allowance For Credit Losses (ACL) to Loans and Other Finance Receivables, Excluding and Loans at Fair Value
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Allowance for credit losses (GAAP)	$	20,827		$	18,438		$	21,965		$	21,703		$	23,171

Loans and other finance receivables (GAAP)		2,071,675			2,030,437			2,008,396			1,988,535			1,956,315
Less: Loans at fair value		(14,182	)		(14,501	)		(13,965	)		(12,900	)		(13,139	)
Loans and other finance receivables, excluding loans at fair value (non-GAAP)	$	2,057,493		$	2,015,936		$	1,994,431		$	1,975,635		$	1,943,176

ACL to loans and other finance receivables (GAAP)		1.01	%		0.91	%		1.09	%		1.09	%		1.18	%
ACL to loans and other finance receivables, excluding loans at fair value (non-GAAP)		1.01	%		0.91	%		1.10	%		1.10	%		1.19	%

	Tangible Common Equity Ratio Reconciliation – Corporation
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Total stockholders’ equity (GAAP)	$	173,266		$	171,522		$	167,450		$	162,382		$	159,936
Less: Goodwill and intangible assets		(3,615	)		(3,666	)		(3,717	)		(3,768	)		(3,819	)
Tangible common equity (non-GAAP)		169,651			167,856			163,733			158,614			156,117

Total assets (GAAP)		2,528,586			2,385,867			2,387,721			2,351,584			2,292,923
Less: Goodwill and intangible assets		(3,615	)		(3,666	)		(3,717	)		(3,768	)		(3,819	)
Tangible assets (non-GAAP)	$	2,524,971		$	2,382,201		$	2,384,004		$	2,347,816		$	2,289,104
Tangible common equity to tangible assets ratio – Corporation (non-GAAP)		6.72	%		7.05	%		6.87	%		6.76	%		6.82	%

	Tangible Common Equity Ratio Reconciliation – Bank
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Total stockholders’ equity (GAAP)	$	220,768		$	219,119		$	217,028		$	211,308		$	208,319
Less: Goodwill and intangible assets		(3,615	)		(3,666	)		(3,717	)		(3,768	)		(3,819	)
Tangible common equity (non-GAAP)		217,153			215,453			213,311			207,540			204,500

Total assets (GAAP)		2,525,029			2,382,014			2,385,994			2,349,600			2,292,894
Less: Goodwill and intangible assets		(3,615	)		(3,666	)		(3,717	)		(3,768	)		(3,819	)
Tangible assets (non-GAAP)	$	2,521,414		$	2,378,348		$	2,382,277		$	2,345,832		$	2,289,075
Tangible common equity to tangible assets ratio – Bank (non-GAAP)		8.61	%		9.06	%		8.95	%		8.85	%		8.93	%

	Tangible Book Value Reconciliation
	March 31, 2025			December 31, 2024			September 30, 2024			June 30, 2024			March 31, 2024
Book value per common share	$	15.35		$	15.26		$	14.91		$	14.51		$	14.30
Less: Impact of goodwill /intangible assets		0.32			0.33			0.33			0.34			0.34
Tangible book value per common share	$	15.03		$	14.93		$	14.58		$	14.17		$	13.96

The MIL Network –

April 26, 2025

MIL-OSI Security: Eight Guatemalan Nationals Indicted for Smuggling Illegal Aliens into the United States for Cash

Source: Office of United States Attorneys

TULSA, Okla. – Eight Guatemalan nationals were indicted in court for allegedly being paid to smuggle illegal aliens into the United States from Guatemala, Mexico, and other countries in Central or South America, including Asia. The activity is alleged to have occurred over the past four years. Once across the Mexico border, the defendants would further help conceal and harbor aliens illegally across more than 24 states.

“For the past four years, this illegal alien smuggling group has operated and laundered proceeds in the Northern District of Oklahoma,” said U.S. Attorney Clint Johnson. “These defendants would not be in custody today without federal and state law enforcement working collaboratively, with prosecutors across the United States. The arrest and ongoing investigation surrounding these Guatemalan Nationals, and their conspirators not only protects the citizens in the Northern District of Oklahoma but also further protects lawful citizens across the United States.”

“ICE is committed to pursuing human smugglers regardless of their location or attempts to evade arrest,” said Travis Pickard, Special Agent in Charge of ICE Homeland Security Investigations Dallas. “This indictment indicates the extensive nature of our human smuggling investigations and role in immigration enforcement. HSI’s special agents across several field offices have worked relentlessly to trace those transporting and harboring aliens from their countries of origin to their final destinations, effectively dismantling their illegal smuggling operations and money laundering schemes.”

Cidia Marleny Lima Lopez, 39, and Ottoniel Castro Argueta, 33, were arrested today in Charlotte, North Carolina; Veronica Maribel Lima Lopez, 33, and Esvin Alexander Rodriguez Luis, 26, were arrested in Oklahoma City, Oklahoma; Ariz Obdulio Argueta, 28, and Cesar Rodolfo Garcia Argueta, 20, were arrested in Clarksville, Arkansas; Pedro Cucul Gualna, 25, was arrested in Sallisaw, Oklahoma; Carlos Enrique Ramos Caal, 30, was arrested in Flagstaff, Arizona. All are charged with conspiring to bring, transport, and conceal aliens in the United States.

Ottoniel Castro Argueta and Cidia Marleny Lima Lopez are further charged with engaging in monetary transactions with the proceeds from the conspiracy.

During the investigation, law enforcement discovered that the aliens being helped across the border did not have prior authorization to enter and reside in the United States. Once inside the United States, the defendants would help harbor the aliens in Oklahoma, Alabama, Arizona, Arkansas, California, Colorado, Florida, Georgia, Indiana, Illinois, Kansas, Kentucky, Maryland, Michigan, Missouri, Nebraska, New Jersey, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Virginia, and Washington.

The indictment alleges that several associates in Central and South America accepted various forms of payment from the aliens to be brought into the United States illegally. While the investigation is still ongoing, the indictment shows that aliens paid roughly $5,000 per alien to enter the United States. Proceeds from the illegal aliens were laundered through mobile applications and banks across the United States, including the Northern District of Oklahoma.

The Tulsa, Oklahoma City, Dallas, Flagstaff, and Charlotte Homeland Security Investigations field offices; the Tulsa, McAlester and Greensboro, North Carolina Drug Enforcement Administration field offices; the Tulsa and Oklahoma City IRS field offices; the Tulsa and Oklahoma City U.S. Immigration and Customs Enforcement and Removal Operations field offices; and the U.S. Marshals offices in the Northern District of Oklahoma, Western District of Oklahoma, Eastern District of Oklahoma, the Middle District of North Carolina, and the Western District of Arkansas are investigating the case with the assistance of several state law enforcement agencies.

Assistant U.S. Attorneys Adam McConney and David Nasar are prosecuting the case with assistance from the Eastern District of Oklahoma and the Western District of Oklahoma.

An indictment is merely an allegation. A defendant is presumed innocent unless convicted through due process of law.

This case was investigated and prosecuted as part of Operation Take Back America. The Homeland Security Task Force, which were established by President Trump in Executive Order 14159, Protecting the American People Against Invasion, are joint operations led by the Department of Justice and the Department of Homeland Security. Operation Take Back America is a nationwide federal initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.

MIL Security OSI –

April 26, 2025

MIL-OSI Security: Ex-Congressman George Santos Sentenced to 87 Months in Prison for Wire Fraud and Aggravated Identity Theft

Source: Office of United States Attorneys

Santos Filed Fraudulent FEC Reports, Embezzled Funds from Campaign Donors, Stole Identities, Charged Credit Cards Without Authorization, Obtained Unemployment Benefits Through Fraud, and Lied in Reports to the U.S. House of Representatives

Former Congressman George Anthony Devolder Santos was sentenced today by United States District Judge Joanna Seybert at the federal courthouse in Central Islip to 87 months in prison for committing wire fraud and aggravated identity theft. As part of the sentence, Santos was ordered to pay restitution to his victims in the amount of $373,749.97 and $205,002.97 in forfeiture. Santos pleaded guilty in August 2024.

John J. Durham, United States Attorney for the Eastern District of New York; Matthew R. Galeotti, Head of the Department of Justice’s Criminal Division; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI New York); and Anne T. Donnelly, Nassau County District Attorney announced the sentence.

“Today, George Santos was finally held accountable for the mountain of lies, theft, and fraud he perpetrated. For the defendant, it was judgment day, and for his many victims including campaign donors, political parties, government agencies, elected bodies, his own family members, and his constituents, it is justice,” stated U.S. Attorney Durham. “To Mr. Santos and other dishonest individuals of that ilk, who lie, steal identities and commit frauds to get elected to public office, this prosecution speaks to the truth that my Office is committed to aggressively rooting out public corruption and that public officials who criminally abuse our electoral process will end up in a federal prison.”

Mr. Durham expressed his appreciation to the U.S. Department of Labor, Office of Inspector General and the New York State Department of Labor, for their assistance.

FBI Assistant Director in Charge Raia stated, “Today, former United States Congressman George Santos is held accountable for his repeated criminal dishonesty – financing his election campaign with ill-obtained funds, stealing COVID unemployment benefits, and providing materially false information in his financial disclosure. Santos abused his authority to garner illicit donations and campaign support; ultimately betraying the public’s trust and violating our democratic systems. May today’s sentencing emphasize the FBI’s continued commitment to dismantling any fraudulent scheme designed to unlawfully benefit those in positions of power.”

“George Santos blatantly disregarded campaign finance laws and abused the trust of his constituents and contributors. While he may have made a mockery of his position in public office, today’s sentencing is justice for those he has wronged. CI New York proudly worked with the Eastern District of New York, the FBI and Nassau County DA’s office to ensure that Santos faces the consequences of his years of deception,” stated IRS-CI New York Special Agent in Charge Chavis.

“George Santos spent his brief career in public service conning his donors and constituents until the deceit caught up to him and he was exposed as an opportunist and a fraud. Today’s lengthy prison sentence is a just ending for a weaver of lies who believed he was above the law,” stated Nassau County District Attorney Donnelly. “Being elected to represent any community is accepting a solemn responsibility and a position of great trust. George Santos failed the people he was elected to represent in Nassau County and Queens. He broke that trust and traded in his integrity for designer clothes and a luxury lifestyle. I will continue to work with my partners to root out public corruption and ensure that the crucial standards to which we hold our elected officials and public institutions are upheld.”

The counts to which Santos pled guilty relate to the following criminal scheme, as set forth in the superseding indictment:

The Party Program Scheme

During the 2022 election cycle, Santos was a candidate for the United States House of Representatives in New York’s Third Congressional District. Nancy Marks, who pleaded guilty on October 5, 2023 to related conduct, was the treasurer for his principal congressional campaign committee, Devolder-Santos for Congress. During this election cycle, Santos and Marks devised and executed a fraudulent scheme to obtain money for the campaign by submitting materially false reports to the Federal Election Commission (FEC), in which they inflated the campaign’s fundraising numbers for the purpose of misleading the FEC, a national party committee, and the public.

The purpose of the scheme was to ensure that Santos and his campaign qualified for a program administered by the national party committee to provide financial and logistical support to Santos’s campaign. To qualify for the program, Santos had to demonstrate, among other things, that his congressional campaign had raised at least $250,000 from third-party contributors in a single quarter.

To create the public appearance that his campaign had met that financial benchmark and was otherwise financially viable, Santos and Marks agreed to falsely report to the FEC that at least 11 of their family members had made significant financial contributions to the campaign. In fact, Santos and Marks both knew that these individuals had neither made the reported contributions nor given authorization for their personal information to be included in such false public reports. In addition, Santos and Marks knew that the national party committee relied on FEC fundraising data to evaluate candidates’ qualification for the program, and agreed to falsely report to the FEC that Santos had loaned the campaign significant sums of money, when, in fact, Santos had not made the reported loans and, at the time the loans were reported, did not have the funds necessary to make such loans. These falsely reported loans included one for $500,000 when in fact Santos had less than $8,000 in his personal and business bank accounts.

Through the execution of this scheme, Santos and Marks ensured that Santos met the necessary financial benchmarks to qualify for the program administered by the national party committee. As a result of qualifying for the program, the congressional campaign received significant financial support.

As part of his plea agreement, Santos stipulated that he had engaged in the following additional criminal conduct, as set forth in the superseding indictment and other court filings, and agreed that this criminal conduct would be considered by the Court at the time of sentencing:

The Credit Card Fraud Scheme

Between approximately July 2020 and October 2022, Santos devised and executed a fraudulent scheme to steal the personal identity and financial information of contributors to his campaign. He then repeatedly charged contributors’ credit cards without their authorization. Because of these unauthorized transactions, funds were transferred to Santos’s campaign, to the campaigns of other candidates for elected office, and to his own bank account. To conceal the true source of these funds and to circumvent campaign contribution limits, Santos falsely represented in FEC filings that some of the campaign contributions were made by other persons, such as his relatives or associates, rather than the true cardholders. Santos did not have authorization to use their names in this way. In furtherance of the scheme, Santos sought out victims he knew were elderly persons suffering from cognitive impairment or decline.

Fraudulent Political Contribution Solicitation Scheme

Beginning in September 2022, during his successful campaign for Congress, Santos operated a limited liability company (Company #1) through which he defrauded prospective political supporters. Santos enlisted a Queens-based political consultant (Person #1) to communicate with prospective donors on Santos’s behalf. Santos directed Person #1 to falsely tell donors that, among other things, their money would be used to help elect Santos to the House, including by purchasing television advertisements. In reliance on these false statements, two donors (Contributor #1 and Contributor #2) each transferred $25,000 to Company #1’s bank account, which Santos controlled.

Shortly after the funds were received into Company #1’s bank account, the money was transferred into Santos’s personal bank accounts—in one instance laundered through two of Santos’s personal accounts. Santos then used much of that money for personal expenses. Among other things, Santos used the funds to make personal purchases, including of designer clothing, to withdraw cash, to discharge personal debts, and to transfer money to his associates.

Unemployment Insurance Fraud Scheme

Beginning in approximately February 2020, Santos was employed as a Regional Director of a Florida-based investment firm (Investment Firm #1). By late March 2020, in response to the outbreak of COVID-19 in the United States, new legislation was signed into law that provided additional federal funding to assist out-of-work Americans during the pandemic.

In mid-June 2020, although he was employed and not eligible for unemployment benefits, Santos applied for government assistance through the New York State Department of Labor (NYS DOL), claiming falsely to have been unemployed since March 2020. From that point until April 2021—during which time Santos was working and receiving a salary on a near-continuous basis, and throughout his first unsuccessful run for Congress—he falsely affirmed each week that he was eligible for unemployment benefits when he was not. As a result, Santos fraudulently received more than $24,000 in unemployment insurance benefits.

False Statements to the House of Representatives

Santos, like all candidates for the House, had a legal duty to file with the Clerk of the United States House of Representatives a Financial Disclosure Statement (House Disclosures) before each election. In his House Disclosures, Santos was personally required to give a full and complete accounting of his assets, income, and liabilities, among other things. He certified that his House Disclosures were true, complete, and correct.

In September 2022, in connection with his second campaign for election to the House, Santos filed a House Disclosure in which he vastly overstated his income and assets. In this House Disclosure, he falsely certified that during the reporting period:

He had earned $750,000 in salary from the Devolder Organization LLC, a Florida‑based entity of which Santos was the sole beneficial owner;
He had received between $1,000,001 and $5 million in dividends from the Devolder Organization LLC;
He had a checking account with deposits of between $100,001 and $250,000; and
He had a savings account with deposits of between $1 million and $5 million.

These assertions were false: Santos had not received from the Devolder Organization LLC the reported amounts of salary or dividends and did not maintain checking or savings accounts with deposits in the reported amounts. Further, Santos failed to disclose that, in 2021, he received approximately $28,000 in income from Investment Firm #1 and more than $20,000 in unemployment insurance benefits from the NYS DOL.

The government’s case is being handled by the Office’s Public Integrity Section and the Criminal Section of the Office’s Long Island Division, along with the Public Integrity Section of the Department of Justice’s Criminal Division. Assistant United States Attorneys Ryan Harris, Anthony Bagnuola, and Laura Zuckerwise, along with Trial Attorney John Taddei, are in charge of the prosecution, with assistance from Paralegal Specialists Rachel Friedman and Dinora Orozco.

The Defendant:

GEORGE ANTHONY DEVOLDER SANTOS
Age: 36
Queens, New York

E.D.N.Y. Docket No. 23-CR-197 (S-2) (JS)

MIL Security OSI –

April 26, 2025

MIL-OSI Security: Michigan Man Sentenced in Maryland to Five Years in Federal Prison for Tax-Refund Money Laundering Scheme

Source: Office of United States Attorneys

The conspirators used stolen personally identifiable information from identity theft victims located in Maryland

Greenbelt, Maryland – Today, U.S. District Judge Deborah K. Chasanow sentenced Jerome Brown, 42, of Detroit, Michigan, to five years in federal prison for his role in laundering money stolen from federal and North Carolina state-tax refunds. Additionally, Brown was ordered to pay restitution in the amount of $604,889.64. On January 28, 2022, Brown pled guilty to conspiracy to commit money laundering.

Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge Kareem A. Carter, Internal Revenue Service – Criminal Investigation (IRS-CI), Washington, D.C. Field Office; Special Agent in Charge Matt McCool, U.S. Secret Service (USSS) – Washington Field Office; Joseph V. Cuffari, Inspector General for the Department of Homeland Security (DHS-OIG); and Acting Special Agent in Charge Colleen Lawlor, Social Security Administration (SSA-OIG) Office of Inspector General – Philadelphia Field Division.

In his guilty plea, Brown acknowledged that from February through August 2020, he conspired with individuals in Nigeria and Michigan to launder wire-fraud proceeds. The co-conspirators placed the wire-fraud proceeds on Green Dot pre-paid debit cards. Brown laundered the fraudulent funds by depositing them into bank accounts and cashing them out through ATM withdrawals and purchasing money orders and cryptocurrency.

These fraudulent proceeds were comprised of stolen funds from the Internal Revenue Service (IRS) and the North Carolina Department of Revenue (NCDOR). The IRS and NCDOR administer federal and North Carolina state-revenue laws, respectively, and pay “tax refunds” to individuals who are entitled to them under the law. At the time, these funds could be paid onto pre-paid debit cards. Brown and his co-conspirators regularly cashed out these funds soon after the government agencies added funds to a card.

Through the fraudulent scheme, one of Brown’s co-conspirators, who was working from Nigeria, and others, caused funds to be placed on the pre-paid debit cards. The co-conspirators registered the cards with Green Dot using stolen personally identifiable information (PII) from identity theft victims around the country, including in Maryland.

Co-conspirators purchased the pre-paid debit cards in the United States and then sent the associated card information to the co-conspirator in Nigeria to receive the stolen government funds. The co-conspirators aided the fraudulent scheme by using stolen PII to file for false IRS tax refunds. Additionally, the co-conspirators applied for NCDOR tax refunds and state unemployment insurance payments.

The federal and state agencies then deposited the proceeds through ACH transfers directly onto the pre-paid debit cards. After the funds were placed onto the pre-paid debit cards, the co-conspirator in Nigeria informed others, including Brown, that the funds were available on the cards. In exchange for a commission, Brown and the other co-conspirators facilitated the cashing out of the cards and returned the remaining funds to the co-conspirator in Nigeria.

Brown and the other co-conspirators took steps to conceal their identities, the money laundering conspiracy, and scheme to defraud. The co-conspirators attempted to hide the fraudulent scheme by enlisting others to make withdrawals from the cards, withdrawing from multiple locations, converting funds into cash rather than depositing them into bank accounts, and making money orders payable to other individuals.

The defendant cashed out at least approximately $540,975.80 from pre-paid debit cards as part of the scheme. Brown kept approximately 40 percent of the proceeds, for a total of $216,390.36, and sent approximately $324,585.44 in Bitcoin to his co-conspirator in Nigeria. The co-conspirators used the pre-paid debit cards to apply for at least approximately $1,255,761 in benefits from the IRS and $588,716 in benefits from the NCDOR.

U.S. Attorney Hayes commended the IRS-CI, USSS, DHS-OIG, SSA-OIG, and U.S. Postal Inspection Service (USPIS) – Detroit Division for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorneys Elizabeth Wright and Darren Gardner who prosecuted the federal case.

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

# # #

MIL Security OSI –

April 26, 2025

MIL-OSI: DTE Completes Construction on Pine River Solar Park

Source: GlobeNewswire (MIL-OSI)

Detroit, April 25, 2025 (GLOBE NEWSWIRE) — DTE Energy (NYSE:DTE), Michigan’s largest producer of and investor in renewable energy, announced that construction has been completed at Pine River Solar Park during a ribbon-cutting ceremony at the site today. Located in mid-Michigan’s Pine River Township, the 80-megawatt renewable energy development has more than 180,000 solar panels and will generate enough clean energy to power nearly 20,000 homes.

Pine River Solar is the second of DTE’s three new solar parks to be connected to the electric grid in 2025, and the company has five additional parks under construction. These projects are reflective of DTE’s customers’ demand for clean energy and are funded through the company’s voluntary CleanVision MIGreenPower, which is Michigan’s largest community solar program. This customer interest is also helping to fuel DTE’s progress toward its goal of achieving net zero carbon emissions and reaching Michigan’s new renewable energy standard of 60% by 2035.

“The completion of Pine River Solar will be another milestone in what has been DTE’s most active period of renewable development in its history,” said Matt Paul, president and chief operating officer, DTE Electric. “This is further evidence that DTE is the state’s leading investor and operator of renewable energy, and it also demonstrates DTE’s commitment to supporting economic development and thriving communities through local tax revenues that are improving the daily lives of our host communities’ residents.”

Since 2009, DTE’s investments in renewable energy have created an estimated 20,000 jobs in Michigan. Additionally, the new park will bring Gratiot County and Pine River Township significant added tax revenue over the life of the project, which can be used for roads, schools, first responders and other vital community services.

“We’re pleased to have developed a business relationship with DTE that began with Pine River Wind back in 2019,” said Kevin Beeson, Pine River Township supervisor. “When the company more recently approached us with their solar plans, we were confident that both sides wanted a successful project. From early planning through construction and startup, DTE was a partner willing to revise plans to accommodate resident input and township demands. Pine River Solar will further solidify DTE as our community’s largest taxpayer. We value their commitment to our township, and we look forward to their continued success in the renewable energy world.”

DTE already generates enough clean energy from wind and solar projects to power more than 750,000 homes and plans to power the equivalent of nearly 6 million homes with renewable energy by 2042. The company’s MIGreenPower program has enrolled nearly 100,000 residential and 1,600 business customers, with plans to add more than 2,400 megawatts of new wind and solar to support those enrollments over the next 10 years.

About DTE Energy

DTE Energy (NYSE:DTE) is a Detroit-based diversified energy company involved in the development and management of energy-related businesses and services nationwide. Its operating units include an electric company serving 2.3 million customers in Southeast Michigan and a natural gas company serving 1.3 million customers across Michigan. The DTE portfolio also includes energy businesses focused on custom energy solutions, renewable energy generation, and energy marketing and trading. DTE has continued to accelerate its carbon reduction goals to meet aggressive targets and is committed to serving with its energy through volunteerism, education and employment initiatives, philanthropy, emission reductions and economic progress. Information about DTE is available at dteenergy.com, empoweringmichigan.com, x.com/dte_energy and facebook.com/dteenergy.

The MIL Network –

April 26, 2025

MIL-OSI Russia: The government has introduced a moratorium on the application of VAT penalties to entrepreneurs using the simplified taxation system

Translation. Region: Russian Federal

Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

Document

Resolution of April 23, 2025 No. 530

The government has decided to support entrepreneurs who use the simplified taxation system (STS) and who have become value-added tax (VAT) payers for the first time. They will not be subject to penalties for failure to submit their first VAT tax return on time if such a tax return is submitted for the first time for any of the quarters of 2025. The decision taken will help businesses calmly reconfigure their accounting programs and study the procedure for filling out a VAT return.

Changes to the Tax Code for taxpayers using the simplified taxation system came into force in 2025. In particular, the revenue limit for simplified taxation system payers expanded from 265.8 million to 450 million rubles, and the threshold for the residual value of fixed assets expanded from 150 million to 200 million rubles. Thus, more entrepreneurs were given the opportunity to use the simplified taxation system without resorting to business fragmentation.

Entrepreneurs using the simplified tax system, whose revenue for the previous year exceeded 60 million rubles or exceeded 60 million rubles from January 1, 2025, are required to pay value-added tax. It is precisely to make it easier for them to adapt to the new rules that the Government has decided to temporarily suspend the application of penalties.

The signed resolution comes into force from the moment of publication and applies to legal relations that arose from January 1, 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 –

April 26, 2025

MIL-OSI USA: Office of Mike Lawler Closes Over 6,000 Cases, $27.2 Million Returned to Constituents

Source: US Congressman Mike Lawler (R, NY-17)

Pearl River, N.Y. – 4/25/2025… Today, Congressman Mike Lawler (NY-17) announced a significant milestone for his district offices’ casework team, which has now closed over 6,000 constituent cases and returned more than $27.2 million to residents of New York’s Hudson Valley since he took office in January 2023.

Year-to-date in 2025 alone, Lawler’s office has closed 1,082 cases and brought back $2.65 million for constituents. Since the start of his first term in January 2023, the office has now closed 6,000 cases and returned a total of $27,208,510.15 to the district.

“Helping constituents navigate federal agencies is one of the most important parts of our job, and I couldn’t be prouder of the work my team has done,” said Congressman Lawler (NY-17). “Whether it’s veterans’ benefits, Social Security checks, passports, tax returns, or FEMA assistance, we’ve worked every day to cut through the noise and get real results for folks in the district.”

“I am writing to express my sincere gratitude to you and your team for the invaluable assistance I received in resolving my IRS issue. Navigating tax-related challenges can be incredibly stressful, and I genuinely appreciate the time and effort that your office dedicated to helping me,” wrote constituent Michael from Dutchess County in a March 2025 email to members of Lawler’s staff. “Their professionalism, responsiveness, and dedication made a significant difference in resolving the matter efficiently. They were knowledgeable and incredibly supportive throughout the process, ensuring that I received the guidance I needed.”

“This is what public service is all about, being there for people when they need help the most,” Congressman Lawler concluded. “Whether it’s a delayed tax refund, a missing VA benefit, or a stalled immigration case, we fight to make sure our constituents aren’t left behind.”

Congressman Lawler is one of the most bipartisan members of Congress and represents New York’s 17th Congressional District, which is just north of New York City and contains all or parts of Rockland, Putnam, Dutchess, and Westchester Counties. He was rated the most effective freshman lawmaker in the 118th Congress, 8th overall, surpassing dozens of committee chairs.

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MIL OSI USA News –

April 26, 2025

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 –

April 26, 2025

MIL-OSI Security: Pontiac Man Pleads Guilty in $4 Million Identity Theft and Unemployment Fraud Case

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

DETROIT – A Pontiac man has pleaded guilty to committing aggravated identity theft and wire fraud as part of large-scale, multi-state Unemployment Insurance benefit fraud scheme in which he and co-conspirators fraudulently obtained debit cards loaded with more than $4 million in Pandemic Unemployment Assistance funds, Acting United States Attorney Julie A. Beck announced today.

Joining in the announcement were Megan Howell, Acting Special Agent-in-Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General, Special Agent-in-Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Detroit Division, Charles Miller, Special Agent-in-Charge, Internal Revenue Service – Criminal Investigations, Douglas Zloto, Special Agent-in-Charge, U.S. Secret Service, Sean McStravick, Acting Inspector-in-Charge, U.S. Postal Service, Office of Inspector General, and Director Jason Palmer, State of Michigan Unemployment Insurance Agency.

Terrance Calhoun, Jr., 36, of Pontiac, Michigan, pleaded guilty to committing aggravated identity theft, wire fraud, conspiracy to commit wire fraud, and to possessing 15 or more unauthorized access devices, all in relation to acts of unemployment insurance fraud.

According to his plea agreement, Calhoun Jr., and others, used stolen personal identification and filed hundreds of false unemployment claims with state unemployment insurance agencies in Michigan, Arizona, and Maryland over a six-month period in the names of other individuals without their knowledge or consent. Those false claims resulted in hundreds of debit cards loaded with over $4 million in unemployment insurance funds being mailed to addresses controlled by Calhoun Jr. and his co-conspirators. Roughly $1.6 million dollars in purchases and cash withdrawals were then successfully made from the cards.

As described within a prior complaint, when agents executed search warrants at the principal mailing addresses used for the fraudulent unemployment insurance benefit claims, including the residence of Calhoun Jr., agents seized numerous documents containing the personal identification information of other individuals, multiple debit cards in the names of numerous other individuals, and firearms.

Calhoun now faces a possible sentence of up to 20-years’ imprisonment for each of the wire fraud counts to which he has pleaded guilty, a possible sentence of up to 10-years’ imprisonment for possessing 15 or more unauthorized access devices, and a mandatorily consecutive 2-year sentence for the aggravated identity theft charge to which he has pleaded guilty.

Sentencing is set for August 27, 2025 before United States District Court Judge Judith E. Levy.

“Taxpayer money diverted into the pockets of criminals means less money going to Michiganders who actually need help getting through difficult financial times and who follow the rules when seeking assistance,” said Acting US Attorney Beck. “These charges reflect our office’s ongoing commitment to the community by investigating such schemes and bringing those who commit these crimes to justice.”

“Terrance Calhoun Jr and his co-conspirators engaged in a scheme to defraud state workforce agencies in Michigan, Arizona, and Maryland by filing hundreds of fraudulent unemployment insurance (UI) claims. As a result, Calhoun enriched himself by stealing taxpayer resources intended for unemployed American workers. We will continue to work with our law enforcement partners to protect the integrity of the UI program from those who seek to exploit it,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.

“Individuals who commit identity theft and unemployment insurance fraud of this magnitude deserve to be punished to the fullest extent of the law,” said Charles Miller, Special Agent in Charge, Detroit Field Office, IRS Criminal Investigation (IRS-CI). “Terrance Calhoun, Jr. and Jermaine Arnett demonstrated a blatant disregard of the integrity of the multiple states’ unemployment insurance systems and caused immeasurable hardship to innocent victims. IRS-CI remains committed to the pursuit of identity theft and financial fraud, and together with our partners at the U.S. Attorney’s Office, we will hold those who engage in similar crimes accountable.”

“The FBI in Michigan, alongside our law enforcement partners, remains steadfast in protecting the community and investigating individuals who violate federal law,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI Detroit Field Office. “Today’s guilty plea by Terrance Calhoun, whose involvement in a multi-state fraud scheme, is a clear reminder that bad actors will be stopped, and we will ensure integrity will prevail.”

The case was jointly investigated by agents from the Department of Labor Office of the Inspector General, the Internal Revenue Service – Criminal Investigations Division, the Federal Bureau of Investigation, the Bureau of Immigration and Customs Enforcement, the United States Secret Service, the United States Postal Service Office of the Inspector General, and the State of Michigan -Unemployment Insurance Agency. The case is being prosecuted by Assistant United States Attorneys Carl D. Gilmer-Hill and Jessica A. Nathan.

MIL Security OSI –

April 26, 2025

MIL-OSI USA: Congressman Guthrie Presents Kentucky Students with Awards for Congressional App Challenge and Congressional Art Competition

Source: United States House of Representatives – Congressman Brett Guthrie (2nd District Kentucky)

This week, Congressman Brett Guthrie (KY-02) hosted two events to celebrate and honor the winners of both the 2024 Congressional App Challenge and the 2025 Congressional Art Competition. Both events were held on the campus of Barren County High School.

“I am so proud to see the hard work that our local students put into their submissions for both the Congressional App Challenge and Congressional Art Competitions,” said Congressman Guthrie“It was an honor to host these extraordinarily talented students, their families, teachers, and friends this week to celebrate their incredible accomplishments. I know that all of these students have bright futures ahead, and I look forward to seeing their continued success in whatever their futures hold. Keep up the great work!”

2024 Congressional App Challenge Awards Ceremony

The Congressional App Challenge allows middle and high school students to compete with peers in their own Congressional District by creating and exhibiting their software applications, or “apps,” for mobile, tablet, or computer devices on a platform of their choice.

It was established by Members of the U.S. House of Representatives in 2015 and is a nationwide competition intended to engage students’ creativity and encourage their participation in STEM (Science, Technology, Engineering and Math) fields. Eligibility is limited to students currently enrolled in middle or high school and either reside or attend school in the district.

OVERALL FIRST PLACE: Allergy Aware by Emmaline Phelps, Brooke Gibson and Cole Young from Barren County High School. Their app helps connect individuals with food allergies, as well as their friends and family members, with resources to identify and even treat common allergic reactions. This includes making users aware of risk factors and instructions to administer epinephrine and even contains alternative recipes to avoid the selected allergen.

All three students from the winning student group recently had the opportunity to travel to the U.S. Capitol to participate in the Congressional App Challenge 2024 House of Code Showcase, where winning submissions from across the country were highlighted.

OVERALL FOURTH PLACE: Serving Society by Danica Stephens from Glasgow High School. Their app creates a platform to connect individuals looking for service opportunities with churches, volunteer organizations, and community groups to solve the needs of their broader community.

Congressman Guthrie recently presented other winning students with their awards at a March event at Hebron Middle School. Information about the winners honored at that event can be found here.

Photos from the Congressional App Challenge Awards Ceremony can be found here.

2025 Congressional Art Competition Reception and Awards Ceremony

The Congressional Art Competition allows high school students in Kentucky’s Second Congressional District to compete for the chance to have their artwork displayed in the U.S. Capitol for one year. This week’s reception gave artists from across the district to showcase their artwork for their peers, family members and judges.

The competition is judged by art professionals and professors from colleges and universities in the district. The “Overall First Place” winning artwork will be displayed in the U.S. Capitol for one year. The second and third place submissions, in addition to the “Facebook Favorite” will be displayed in Congressman Guthrie’s various Congressional offices.

All submitted artwork for the 2025 Congressional Art Competition can be found here.

Pictures from this week’s reception can be found here.

OVERALL FIRST PLACE: Liliana Garcia – “Dry Road”

OVERALL SECOND PLACE: Ava Alford – “Sea to Shining Sea”

OVERALL THIRD PLACE: Heloisa Almeida – “Onca Pintada”

Almeida –

FACEBOOK FAVORITE: Heloisa Almeida – “Run for the Roses”

OVERALL HONORABLE MENTIONS:
1. Heloisa Almeida – “Run for the Roses”
2. Braden Bratcher – “Alone”
3. Serenyty Johnson – “Artist Inspiration Project”

COUNTY WINNERS:

Bullitt County:
1. Hannah Sharrill – “Born in Ancient Giza”
2. Tatum Barrow – “Reach for the Stars”

Butler County:
1. Heloisa Almeida – “Onca Pintada”
2. Heloisa Almeida – “Run for the Roses”
3. Braden Bratcher – “Alone”

Hardin County:
1. Liliana Garcia – “Dry Road”
2. Greta Warren – “Emerald Tree Boa”
3. Emily Armstrong – “World Wide Pollution”

Hart County:
1. Braydon Thompson – “Aged to Perfection”
2. Braydon Thompson – “Modern Dragon”
3. Katie Matthews – “The Liderung”

Nelson County:
1. Ava Alford – “Sea to Shining Sea”
2. Ava Alford – “Dreaming of Travel”
3. Zoey Kirchner – “The Warmth of Your Grasp”

Warren County:
1. Liam McDonald – “Chevelle”
2. Bella Dillinger – “AI: Alternate Identity”
3. Shantel Isomura – “Our Lady’s Welcome”

###

MIL OSI USA News –

April 26, 2025

MIL-OSI United Kingdom: Career Insight: Nadia, Trainee Solicitor, HMRC

Source: United Kingdom – Executive Government & Departments

Case study

Career Insight: Nadia, Trainee Solicitor, HMRC

Nadia provides an insight into her training within HM Revenue & Customs

I am a trainee solicitor, currently in my second seat, working in HM Revenue & Customs (HMRC) Legal Group’s VAT Litigation team. My current work includes conducting litigation and looking at the VAT treatment of certain supplies, like food, beauty procedures, books, and marketing deals from some big household names. A big part of the team’s work is also focusing on serious non-compliance fraud cases and various VAT avoidance schemes. Is Jaffa Cake a biscuit or a cake? That’s the kind of question you may get involved in while working for HMRC’s Legal Group.

When applying for a training contract at HMRC, I never truly understood what being a government lawyer would be like. As HMRC’s lawyers, we are protecting billions of pounds that are then given back to the community in the way of public services, like healthcare, police and many other areas funded by the taxpayers. It’s a ‘pinch-me’ moment knowing that your work is meaningful.

In my first seat in Business and Property Taxes Litigation team, and continuing into my second seat, I was given significant responsibility from the outset. I am leading my own cases, managing clients that are experts in a tax field and working with the country’s best counsel. As a trainee, you get to experience various aspects of litigation, whether it is drafting statements of case, creating bundles, attending hearings, or even doing a bit of advocacy. You will not be bored. Some litigation teams are more fast paced than others, but that’s the beauty of it, you will be able to steer your training in the direction you want it to go.

I have truly enjoyed my time as a trainee so far and have been given the opportunity to get involved in work that I never thought I would be able to as a trainee. As strange as it may seem, the highlight of my first seat was when my counsel suddenly fell ill on the morning of an important hearing I had been preparing for months. After dozens of calls with different Chambers, the tribunal, clients, and understandably very unhappy opposing counsel, we managed to adjourn the hearing. The feeling of accomplishment could not be described.

I would recommend a career at HMRC to anyone interested in public service and challenging, interesting, and meaningful work.

Published 24 April 2025

MIL OSI United Kingdom –

April 26, 2025

MIL-OSI United Kingdom: Career Insight: Joe, Trainee Solicitor, HMRC

Source: United Kingdom – Executive Government & Departments

Case study

Career Insight: Joe, Trainee Solicitor, HMRC

Joe provides an insight into his training within HM Revenue & Customs

I am a fourth seat trainee in HM Revenue & Customs (HMRC) Legal Group’s European and International Law advisory team. The team advises on, drafts and helps negotiate a range of international agreements, including Free-Trade Agreements and Double Taxation Treaties.

I studied Philosophy and Politics as my undergraduate degree, focussing my studies on human rights and the regulation of transnational enterprises. I suspected that a career in law was the best opportunity to apply these interests in practice; however, as a non-law graduate I was reluctant to immediately volunteer for the expense and stress of two more years of study in the form of the GDL and LPC. So, after graduating, I moved abroad to pursue a career playing and coaching rugby; the COVID-19 pandemic put paid to that ambition but provided me the opportunity to start an online law conversion.

I applied for the role at HMRC as I thought that first-hand experience of the legislative process and regular precedent-setting litigation would provide a great opportunity to develop my career as a solicitor; but also because the tax arena seemed to offer a lot of variety, encompassing my interests in both public law and commercial questions.

All trainees start in litigation for their first year; trainee solicitors remain within HMRC, while pupil barristers spend six months seconded to Chambers. My first seat was in VAT litigation, so after three years of intensive study, I arrived at HMRC braced for mountains of paperwork and long days of dense tax calculations. Instead, waiting on my desk were various packets of lentil-based snacks and the deceptively knotty legal question; are these crisps, or at least similar to crisps? I spent the seat thinking about other such questions, like what distinguishes cosmetic surgery from medical care. During this seat, I visited the Supreme Court assisting a senior lawyer and saw my own case feature in national newspapers.

For my second seat I applied for HMRC’s Enforcement and Illicit Finance litigation Team. The question for this team was less frequently whether someone owes tax, but how HMRC can actually collect it from them. My tasks ranged from advocating on HMRC’s behalf in the Magistrates Court to instructing counsel at fast pace on High Court proceedings, attending the Court of Appeal and working with international law enforcement to seize overseas assets.

As a trainee you will be given your own cases to run as part of a cross-HMRC case team with tax and policy experts, so you can stretch yourself in an environment surrounded by expert lawyers and tax professionals, who are all very generous with their time. Your role is to co-ordinate this team and ask the right questions to tease the legal arguments out of your clients. In this respect the skills I developed playing team sports were as important as my legal knowledge.

In your second year you move into an advisory team. In my first six months I worked on a mix of human rights and technical tax advice as part of the Personal Tax and Welfare team. I drafted my statutory instrument, which was a particular highlight, and fed into a major budget measure. It can feel like a drastic transition from the more adversarial world of litigation, but the training is extensive with HMRC running internal induction courses alongside the wider GLP offering.

The advisory lawyers cover a wide variety of tasks, with my final seat feeling like an entirely new role. I didn’t study EU or International Law as part of my law conversion, but having the lawyers who drafted the treaties sat next to you in the office is always a good starting point!

Whilst the HMRC training contract will be of particular interest for anyone who wants a career in public law, I think it is really important to understand the breadth of the department’s work. There is regular precedent setting litigation with engages questions of employment and commercial law, and advisory teams that span the breadth of civil and criminal practice.

Published 24 April 2025

MIL OSI United Kingdom –

April 26, 2025

MIL-OSI: BloFin Launches Mastercard Crypto Card Enabling Secure and Effortless Payments

Source: GlobeNewswire (MIL-OSI)

DUBAI, United Arab Emirates, April 25, 2025 (GLOBE NEWSWIRE) — BloFin, a global leading cryptocurrency exchange, is proud to announce the official launch of the BloFin Card. The BloFin Card, now available as a virtual offering, enables select users to integrate digital assets into global online payment scenarios. It is accessible via both web and mobile platforms within the BloFin ecosystem.

BloFin Launches the BloFin Card — Bringing Crypto into Everyday Payments

The BloFin Card offers users a streamlined way to incorporate digital assets into their everyday spending. Built on secure infrastructure with advanced protection protocols, the BloFin Card ensures user confidence with every transaction. Integrated across both web and mobile interfaces, it allows users to manage their card and monitor usage with ease from any device within the BloFin ecosystem. Though not yet publicly introduced, the card has been made available by invitation to a limited group of VIP users. A phased rollout is underway, with broader access expected to follow.

The BloFin Card marks an essential step in expanding the real-world usability of digital assets. In addition to the current virtual card, a physical card version will be introduced soon, providing users with greater flexibility in payment scenarios.

Further updates will be available on www.blofin.com.

Keep Building: Rapid Growth and Innovation of BloFin 2025

As of 2025, BloFin continues to lead in product evolution and user-focused infrastructure. From launching Sub-Accounts to becoming one of the first four global exchanges to introduce the Unified Trading Account (UTA), BloFin is setting new standards for flexibility, performance, and accessibility in the digital asset space.
In celebration of its latest milestones and global expansion, BloFin — Title Sponsor of TOKEN204 Dubai — is hosting the Whales Rave Side Event, bringing together top-tier partners, traders, builders, and creators from around the world.

Follow us X（Twitter）｜Instagram ｜Telegram｜YouTube

About BloFin

BloFin is a top-tier cryptocurrency exchange that specializes in futures trading. The platform offers 480+ USDT-M perpetual pairs, spot trading, copy trading, API access, unified account management, and advanced sub-account solutions. Committed to security and compliance, BloFin integrates Fireblocks and Chainalysis to ensure robust asset protection. By partnering with top affiliates, BloFin delivers scalable trading solutions, efficient fund management, and enhanced flexibility for professional traders. As the constant sponsor of TOKEN2049, BloFin continues to expand its global presence, reinforcing its position as the place “WHERE WHALES ARE MADE.” For more information, visit BloFin’s official website at https://www.blofin.com.

Contact:
Annio W
annio@blofin.io

Disclaimer: This is a paid post and is provided by BloFin. The statements, views, and opinions expressed in this content are solely those of the content provider and do not necessarily reflect the views of this media platform or its publisher. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. We do not guarantee any claims, statements, or promises made in this article. This content is for informational purposes only and should not be considered financial, investment, or trading advice.Investing in crypto and mining-related opportunities involves significant risks, including the potential loss of capital. It is possible to lose all your capital. These products may not be suitable for everyone, and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. However, due to the inherently speculative nature of the blockchain sector—including cryptocurrency, NFTs, and mining—complete accuracy cannot always be guaranteed.
Neither the media platform nor the publisher shall be held responsible for any fraudulent activities, misrepresentations, or financial losses arising from the content of this press release. In the event of any legal claims or charges against this article, we accept no liability or responsibility. Globenewswire does not endorse any content on this page.

Legal Disclaimer: This media platform provides the content of this article on an “as-is” basis, without any warranties or representations of any kind, express or implied. We assume no responsibility for any inaccuracies, errors, or omissions. We do not assume any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information presented herein. Any concerns, complaints, or copyright issues related to this article should be directed to the content provider mentioned above.

Photos accompanying this announcement are available at

https://www.globenewswire.com/NewsRoom/AttachmentNg/80fe29b8-af67-4e95-a97d-c0f00119c7aa

https://www.globenewswire.com/NewsRoom/AttachmentNg/c341298b-64e2-4e80-8d3f-d381e9f0ad86

https://www.globenewswire.com/NewsRoom/AttachmentNg/be8f1149-079e-44e2-9194-e74eb7df0bdc

The MIL Network –

April 26, 2025

MIL-OSI: TRILLION ENERGY ANNOUNCES 2024 YEAR-END RESERVE REPORT

Source: GlobeNewswire (MIL-OSI)

Vancouver, B.C. , April 25, 2025 (GLOBE NEWSWIRE) — Trillion Energy International Inc. (“Trillion” or the “Company”) (CSE: TCF) (OTCQB: TRLEF) (Frankfurt: Z62) is pleased to provide a summary and highlights of its December 31, 2024, year-end reserve report.

Reserve Report Highlights

Net present value 10% (NPV10%) of total proved plus probable natural gas and oil reserves is USD $363.6 million* net to Trillion, which represents USD $2.98 per common share***
Total proved plus probable conventional natural gas reserves increased to 62.3 Bcf*, up from 55.8 Bcf* (2023), a 12% increase from 2023.
NPV10% of total proved reserves decreased to USD $106.8* million from US$ 134.3* million (2023), a decrease of 20% from 2023.
NPV10% of total proved plus probable plus possible reserves is USD $630.1 million net to Trillion.
Total proved plus probable oil reserves of 247 Mbbl of oil for the Cendere oil field compared to 240 Mbbl in 2023.

*Net Trillion’s 49% interest before income tax and after royalty
*** basic common shares

Reserve Report Summary

Trillion 49% interest, before income taxes and after royalties

	Light and Medium				Conventional				Oil
	Crude Oil				Natural Gas				Equivalent
	(Mbbl)	(Mbbl)			(Bcf)	(Bcf)			(Mboe)	(Mboe)
	Dec. 31	Dec. 31	%		Dec. 31	Dec. 31	%		Dec. 31	Dec. 31	%
	2024	2023	Change		2024	2023	Change		2024	2023	Change
Total Proved	202	186	8.6	%	19.5	18.0	8.3	%	3,454	3,183	8.5	%
Total Probable	45	54	-16.7	%	42.8	37.8	13.2	%	7,182	6,349	13.1	%
Total Proved Plus Probable	247	240	2.9	%	62.3	55.8	11.6	%	10,636	9,531	11.6	%
Total Possible	41	52	-21.2	%	46.3	40.8	13.5	%	7,751	6,859	13.0	%
Total PPP	288	292	-1.4	%	108.6	96.6	12.4	%	18,387	16,390	12.2	%

Net Present Value of Trillion Interest, before income taxes and after royalties

	NPV – 10%
	Before Income Tax
	(US$M)		(US$M)
	Dec. 31		Dec. 31		%
		2024		2023	Change
Total Proved	$	106.8	$	134.3	-20.5	%
Total Probable	$	256.8	$	286.2	-10.3	%
Total Proved Plus Probable	$	363.6	$	420.5	-13.5	%
Total Possible	$	266.5	$	292.2	-8.8	%
Total PPP	$	630.1	$	712.7	-11.6	%

* The decline in valuation is primarily due to lower forecast gas prices used in the 2024 GLJ evaluation compared to 2023.

About the Reserves Evaluation

For the year ended December 31, 2024, the Company’s reserves were evaluated by GLJ Ltd. (“GLJ“), in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook maintained by the Society of Petroleum Evaluation Engineers (Calgary Chapter) (“COGEH”) and National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101”) and are based on the Company’s 2024 year-end estimated reserves as evaluated by GLJ in their report dated April 4, 2025, with an effective date of December 31, 2024 (the “Reserves Report“). GLJ is an independent qualified reserves evaluator as defined in NI 51-101. Additional reserves information as required under NI 51-101 will be included in the Company’s statement of reserves data and other oil and gas information on Form 51-101F1, which is expected to be filed on SEDAR+ by April 29, 2025. See “Advisory Note Regarding Oil and Gas Information” section in the “Advisories”, at the end of this news release.

About the Company

Trillion Energy is focused on natural gas production for Europe and Turkey with natural gas assets in Turkiye and Bulgaria. The Company is 49% owner of the SASB natural gas field, one of the Black Sea’s first and largest-scale natural gas development projects; a 19.6% (except three wells with 9.8%) interest in the Cendere oil field; and in Bulgaria, the Vranino 1-11 block, a prospective unconventional natural gas property. More information may be found on www.sedarplus.ca and our website.

Contact
Corporate offices: 1-778-819-1585
e-mail: info@trillionenergy.com
Website: www.trillionenergy.com

Cautionary Statement Regarding Forward-Looking Statements

This news release may contain certain forward-looking information and statements, including without limitation, statements pertaining to the Company’s ability to obtain regulatory approval of the executive officer and director appointments. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. Trillion does not undertake to update any forward-looking information except in accordance with applicable securities laws.

These statements are not guaranteeing of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Accordingly, actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. These factors include unforeseen securities regulatory challenges, COVID, oil and gas price fluctuations, operational and geological risks, the ability of the Company to raise necessary funds for development; the outcome of commercial negotiations; changes in technical or operating conditions; the cost of extracting gas and oil may be too costly so that it is uneconomic and not profitable to do so and other factors discussed from time to time in the Company’s filings on www.sedarplus.ca, including the most recently filed Annual Report on Form 20-F and subsequent filings for the first quarter of 2024. For a full summary of our oil and gas reserves information for Turkey, please refer to our Forms F-1,2,3 51-101 filed on www.sedarplus.ca, and or request a copy of our reserves report effective December 31, 2024.

The MIL Network –

April 26, 2025

MIL-OSI Russia: IMF Reaches Staff-Level Agreement on the Fourth Review under the Extended Fund Facility with Sri Lanka

Source: IMF – News in Russian

April 25, 2025

End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. 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’s Executive Board for discussion and decision.

IMF staff and the Sri Lankan authorities have reached staff-level agreement on economic policies to conclude the Fourth Review of Sri Lanka’s reform program supported by the IMF’s Extended Fund Facility. Once the review is approved by the IMF Executive Board, Sri Lanka will have access to about US$344 million in financing.
Program performance remains strong overall. Economic growth is rebounding. Revenue mobilization, reserve accumulation, and structural reforms are advancing as envisaged. Debt restructuring is nearly complete. Importantly, the government remains committed to program objectives.
However, global trade policy uncertainty poses significant downside risks to Sri Lanka’s economy. If these materialize, authorities and staff will work together to assess the impact and formulate policy responses within the contours of the IMF-supported program.

Washington, DC: After constructive discussions in Colombo and during the International Monetary Fund (IMF) and World Bank Spring Meetings in Washington DC, IMF Mission Chief for Sri Lanka Evan Papageorgiou issued the following statement:

“IMF staff and the Sri Lankan authorities have reached a staff-level agreement on the Fourth Review of Sri Lanka’s reform program supported by the IMF’s 48-month Extended Fund Facility (EFF) arrangement. The EFF was approved by the IMF Executive Board for a total amount of SDR 2.3 billion (about US$3 billion) on March 20, 2023.

“The staff-level agreement is subject to IMF Executive Board approval, contingent on: (i) the implementation of prior actions relating to restoring electricity cost-recovery pricing and ensuring proper function of the automatic electricity price adjustment mechanism; and (ii) the completion of financing assurances review, which will focus on confirming multilateral partners’ committed financing contributions and adequate debt restructuring progress.

“Upon completion of the Executive Board review, Sri Lanka would have access to SDR254 million (about US$344 million), bringing the total IMF financial support disbursed under the arrangement to SDR1,270 million (about US$1,722 million).

“Sri Lanka’s ambitious reform agenda continues to deliver commendable outcomes. The post-crisis growth rebound of 5 percent in 2024 is remarkable. Revenue mobilization reforms had improved revenue-to-GDP ratio to 13.5 percent in 2024, from 8.2 percent in 2022. Gross official reserves reached US$6.5 billion at end-March 2025 given sizeable foreign exchange purchases by the central bank. Substantial fiscal reforms have strengthened public finances. Sri Lanka’s debt restructuring is nearly complete.

“Program performance remains strong overall. Based on preliminary data, most end-March quantitative targets for which data is available were met. Most structural benchmarks due by end-April were either met or implemented with delay. However, the continuous structural benchmark on cost-recovery electricity pricing remains not met. Inflation remains below the Monetary Policy Consultation target band.

“The recent external shock and evolving developments create significant uncertainty for the Sri Lankan economy, which is still recovering from its own economic crisis.

“Against this global uncertainty, sustained revenue mobilization efforts and prudent budget execution remain critical to preserve the limited fiscal space, to allow appropriate responses if shocks materialize. Restoring cost-recovery electricity pricing is essential to minimize fiscal risks and enable appropriate electricity infrastructure investments. The tax exemption framework should be well designed to reduce fiscal costs and corruption risks, while enabling growth. Reforms to boost tax compliance are important to deliver revenue gains without resorting to additional tax measures.

“Similarly, it remains critical to continue rebuilding external buffers through reserves accumulation, to allow appropriate responses if shocks materialize. Inflationary pressures remain contained and banks are well capitalized. However, continued monitoring is warranted to ensure sustained price and financial stability.

“The government has an important responsibility to protect the poor and vulnerable at this uncertain time. It is important to continue efforts to improve targeting, adequacy, and coverage of social safety nets. Fiscal support needs to be well-targeted, time-bound, and within the existing budget envelope.

“The new government’s sustained commitment to program objectives has enhanced confidence and ensures policy continuity. Going forward, sustaining reform momentum including by reducing corruption vulnerabilities, is critical to safeguard the hard-won gains, durably restore macroeconomic and debt sustainability, and unlock robust and inclusive growth.

“The IMF team held meetings in Washington DC with the Honorable Deputy Minister of Finance and Planning Dr. Harshana Suriyapperuma, Central Bank of Sri Lanka Governor Dr. P. Nandalal Weerasinghe, Secretary to the Treasury Mr. K M Mahinda Siriwardana, and other senior officials.

“We would like to thank the authorities for the excellent discussions and strong collaboration.”

IMF Communications Department

MEDIA RELATIONS

PRESS OFFICER: Randa Elnagar

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

https://www.imf.org/en/News/Articles/2025/04/25/pr25122-sri-lanka-imf-reaches-sla-on-the-4th-review-under-the-eff

MIL OSI

MIL OSI Russia News –

April 26, 2025

MIL-OSI: Pacific Financial Corp Earns $2.4 Million, or $0.24 per Diluted Share for First Quarter 2025; Board of Directors Approves 5% Stock Buyback Plan; Declares Quarterly Cash Dividend of $0.14 per Share

Source: GlobeNewswire (MIL-OSI)

ABERDEEN, Wash., April 25, 2025 (GLOBE NEWSWIRE) — Pacific Financial Corporation (OTCQX: PFLC), (“Pacific Financial”) or the (“Company”), the holding company for Bank of the Pacific (the “Bank”), reported net income of $2.4 million, or $0.24 per diluted share for the first quarter of 2025, compared to $2.2 million, or $0.21 per diluted share for the fourth quarter of 2024, and $2.7 million, or $0.26 per diluted share for the first quarter of 2024. Current quarter net income includes a provision for credit losses of $83,000, compared to the recapture of $103,000 from the allowance for credit losses for the fourth quarter of 2024, and a provision for credit losses of $33,000 for the first quarter of 2024. Except for year-end December 31, 2024 financials, all results are unaudited.

The Board of Directors of Pacific Financial declared a quarterly cash dividend of $0.14 per share on April 23, 2025. The dividend will be payable on May 23, 2025 to shareholders of record on May 9, 2025. Additionally, the Board of Directors has authorized an additional $5.3 million toward future stock repurchases, or approximately 5.0% of total shares outstanding.

“We are pleased with our first quarter results; operating earnings were solid and benefitted from strong core deposit growth, margin expansion and a lower cost of deposits as well as the closure of the residential mortgage division in late 2024. During the quarter, we saw good progress with our deposit growth initiative with core deposit growth of $61.2 million or 7%. We continue to benefit from our strong core deposit base, with non-interest bearing accounts representing 36% of total deposits. The expansion in our net interest margin was fueled by higher rates on loan production and on investment purchases, as well as a declining cost of funds. Cost of funds declined 7 basis points to 1.10%, despite continued rate pressure. Demand for lending continues to be tempered by the current level of interest rates and economic uncertainty.” said Denise Portmann, President and Chief Executive Officer.

“Our business model and strategies continue to be built on a culture of relationship banking with a strong foundation of sound credit quality lending standards. At quarter-end, our asset quality metrics remained strong, allowance for credit loss levels were solid and capital levels also remained strong. We believe the combination of our strong balance sheet, and prudent risk management will allow us to achieve sustainable growth and continue delivering results that benefit our stakeholders for the long term,” said Portmann.

First Quarter 2025 Financial Highlights:

Return on average assets (“ROAA”) improved to 0.81%, compared to 0.74% for the fourth quarter 2024, and decreased from 0.95% for the first quarter 2024.
Return on average equity (“ROAE”) was 8.48%, compared to 7.27% from the preceding quarter, and 9.32% from the first quarter a year earlier.
Net interest income was $11.3 million, compared to $10.9 million for the fourth quarter of 2024, and $11.4 million for the first quarter of 2024.
Net interest margin (“NIM”) increased to 4.12%, compared to 3.99% from the preceding quarter, and 4.38% for the first quarter a year ago.
Provision for credit losses was $83,000 for the first quarter ended March 31, 2025, compared to a recapture of $103,000 for the preceding quarter and a provision of $33,000 in the first quarter a year ago.
Gross portfolio loan balances increased to $707.0 million at March 31, 2025, compared to $704.9 million at December 31, 2024, and increased 2%, or $12.8 million from $694.2 million one year earlier.
Total deposits increased $59.9 million, or 6%, to $1.07 billion at March 31, 2025 compared to the previous quarter and increased $78.9 million, or 8%, from one year earlier. Non-interest bearing deposits represent 36% of total deposits at March 31, 2025, and support a lower cost core deposits portfolio. Core deposits were 88% of total deposits at March 31, 2025.
Non-performing assets to total assets ratio remained low at 0.10%, or $1.2 million for the current quarter end and were 0.09% and $1.1 million three months earlier. Substandard loans decreased $41,000 to $2.7 million at March 31, 2025 and special mention assets declined $680,000 to $10.1 million at March 31, 2025.
Shareholder equity increased $3.1 million during the quarter largely due to net income and lower accumulated other comprehensive loss marks on the investment portfolio, offset by stock repurchases and dividend payments. Tangible book value per share was $10.33 at March 31, 2025, an increase from $9.80 at March 31, 2024.
Pacific Financial and Bank of the Pacific continue to exceed regulatory well-capitalized requirements. At March 31, 2025, Pacific Financial’s estimated leverage ratio was 10.9% and its estimated total risk-based capital ratio was 17.4%.

Balance Sheet Review

Total assets increased to $1.22 billion at March 31, 2025, compared to $1.15 billion at December 31, 2024, and $1.13 billion one year earlier.

Cash and cash equivalents increased $63.7 million to $143.8 million at March 31, 2025 from $80.2 million at December 31, 2024 and $91.3 million one year earlier. The increase largely relates to deposit growth during the first quarter.

Liquidity metrics continue to be strong and are managed to ensure adequate funding resources are available to meet customer demand. At March 31, 2025, the Company’s on and off-balance sheet sources totaled $549.7 million. This represents a coverage ratio of short-term funds available to uninsured and uncollateralized deposits of 212%. Included in available sources are collateralized credit lines the Company has established with the Federal Home Loan Bank of Des Moines (FHLB) and the Federal Reserve Bank of San Francisco, as well as unsecured borrowing lines from various correspondent banks. There were no balance outstanding on any of these facilities at quarter-end. Uninsured or uncollateralized deposits were 24% of total deposits at March 31, 2025.

Investment securities increased $0.9 million to $305.4 million, compared to $304.5 million at December 31, 2024 and increased $16.9 million compared to the like period a year ago. The largest investment category was collateralized mortgage obligations which accounted for 51% of the investment portfolio at March 31, 2025, compared to 48% at December 31, 2024 and 45% one year earlier. The yield on the investment portfolio increased 15 basis points during the current quarter to 3.60% from 3.45% for both the prior quarter and the first quarter a year ago. During the quarter, the bank implemented a $9.0 million restructure with a loss of $165,000; improving yields by over 200 basis points on those investment funds. The adjusted duration of the portfolio was 4.31 years at March 31, 2025 compared to 4.35 years at March 31, 2024.

Gross loans balances increased $2.1 million, to $707.0 million at March 31, 2025, compared to $704.9 million at December 31, 2024. During the first quarter of 2025, growth in new owner-occupied commercial real estate and multi-family loans more than offset the decline in commercial & agriculture, construction & development and residential 1-4 family loans. Year-over-year loan growth was 2%, or $12.8 million, with the largest increases in multi-family loans and owner-occupied commercial real estate increasing $17.9 million and $9.2 million, respectively. Loans classified as commercial real estate for regulatory concentration purposes totaled $263.4 million at March 31, 2025, or 189% of total risk-based capital.

The Company continues to manage concentration limits that establish maximum exposure levels by certain industry segments, loan product types, geography and single borrower limits. In addition, the loan portfolio continues to be well-diversified and is collateralized with assets predominantly within the Company’s Western Washington and Oregon markets.

Credit quality: Nonperforming assets remain minimal at $1.2 million, or 0.10% of total assets at March 31, 2025, compared to $1.1 million, or 0.09% at December 31, 2024. Accruing loans past due more than 30 days represent only 0.04% of total loans. Total loans designated as special mention decreased to $10.1 million at March 31, 2025 compared to $10.8 million at December 31, 2024. The Company has zero other real estate owned as of March 31, 2025.

Allowance for credit losses (“ACL”) remained at $8.9 million, or 1.26% of gross loans at March 31, 2025. A provision for credit losses of $83,000 was recorded in the current quarter resulting from $75,000 in net charge-offs and loan growth. This compares to a recapture for credit losses of $103,000 in the fourth quarter of 2024 and a provision for credit losses of $33,000 for the first quarter one year earlier.

Total deposits increased to $1.07 billion at March 31, 2025 from $1.01 billion the prior quarter and $995.8 million one year earlier. The company’s strong core deposit base continues to positively impact the Bank’s net interest margin and operating results. Non-interest bearing deposits continued to remain the largest category of deposits and represented 36% of deposits at March 31, 2025. Additionally, interest-bearing demand and money market deposits represented 23% and 18% of total deposits, respectively, at March 31, 2025, and CDs as a percentage of deposits declined during the quarter, after increasing since fourth quarter 2022. CD balances were 12% of total deposits for the current quarter compared to 13% at the prior quarter.

Shareholders’ equity was $116.9 million at March 31, 2025, compared to $113.9 million at December 31, 2024, and $114.7 million at March 31, 2024. The increase in shareholders’ equity during the current quarter was primarily due to net income and a decrease in unrealized losses on available-for-sale securities with dividend payments and stock repurchases partially offsetting those increases. Net unrealized losses (after-tax) included in shareholders’ equity on available-for-sale securities were $14.2 million at March 31, 2025 compared to $17.5 million at December 31, 2024 and $16.6 million at March 31, 2024. During the quarter, the Company completed its repurchase of shares under the stock repurchase plan announced in October 2024.

Book value per common share was $11.67 at March 31, 2025, compared to $11.26 at December 31, 2024, and $11.10 at March 31, 2024. The Company’s tangible common equity ratio declined to 8.6% at March 31, 2025 relative to 8.8% the prior quarter and 9.0% at March 31, 2024. Regulatory capital ratios of both the Company and the Bank continue to exceed the well-capitalized regulatory thresholds, with the Company’s leverage ratio at 10.9% and total risk-based capital ratio at 17.4% as of March 31, 2025. These regulatory capital ratios are estimates, pending completion and filing of regulatory reports.

Income Statement Review

Net interest income increased $439,000 to $11.3 million for the first quarter of 2025, compared to $10.9 million for the fourth quarter of 2024, and decreased $111,000 compared to $11.4 million for the first quarter a year ago. The change in the current quarter compared to the preceding quarter reflects the impact of higher loan and investment yields, lower deposit and borrowing costs as well as growth in total interest earning assets resulting from core deposit growth during the quarter. The decrease in net interest income compared to the year ago quarter primarily reflects a rise in funding costs and a decrease in yields on interest-bearing cash as the FOMC decreased the federal funds rate 100 basis points in 2024.

The Bank’s net interest margin improved to 4.12% for the quarter ended March 31, 2025 from 3.99% the prior quarter and declined from 4.38% one year earlier. The increase from the prior quarter resulted from both a 7 basis points decrease in costs of funds combined with a 13 basis point increase in loan yields and a 15 basis point increase in investment yields which was partially offset by a 34 basis point decrease in yields on interest-earning cash balances. Loan yields improved as longer term fixed and variable rate loans (originated in a lower rate environment) were renewed at higher rates. In addition, average loan yields on new originations were at higher yields than the current loan portfolio yield. Investment yields improved partially due to $32.3 million of investment purchases at higher yields over the last 6 months including a $9.0 million restructure that replaced lower yielding investments with higher yielding investments. The Bank continues to actively monitor and manage its costs of funds and even in a competitive environment was able to decrease rates on specific deposit categories during the first quarter. In addition, the high percentage of non-interest bearing deposits at 36% continues to help reduce volatility in deposit costs.

Noninterest income decreased to $1.2 million for the current quarter, compared to $1.8 million for the linked quarter and $1.4 million a year earlier. The decrease compared to the linked quarter was primarily due to a loss on the sale of investment securities of $165,000 during the current quarter and a reduction in gain on sale of loans compared to the prior quarter as a result of closing the mortgage division during late 2024. In addition, a death benefit from a bank-owned life insurance policy realized in the fourth quarter of 2024 also contributed to the variance. Fee and service charge income decreased in the first quarter of 2025 to $1.1 million compared to $1.3 million in the previous quarter and $1.1 million in the first quarter of 2024.

Noninterest expenses decreased to $9.4 million for the first quarter of 2025 compared to $10.1 million for the prior quarter and $9.5 million for the first quarter of 2024. The decrease from the prior quarter was primarily related to reductions in mortgage lending salary and employee benefit costs and other mortgage lending costs resulting from the closure of the mortgage division in late 2024. The prior quarter included $773,000 in costs associated with severance and retention payments, lease termination costs and software contract termination expenses related to closing the mortgage division and $602,000 in other mortgage division costs.

The company’s efficiency ratio decreased to 75.86% for the first quarter of 2025, compared to 79.80% in the preceding quarter and increased from 74.21% in the same quarter a year ago.

Income tax expense: Federal and Oregon state income tax expenses totaled $544,000 for the current quarter, and $492,000 for the preceding quarter, resulting in effective tax rates of 18.6% and 18.5%, respectively. These income tax expenses reflect the benefits of tax exempt income on tax-exempt loans and investments, affordable housing tax credit financing, and investments in bank-owned life insurance.

FINANCIAL HIGHLIGHTS (unaudited)	Quarter Ended								Change From
FINANCIAL HIGHLIGHTS (unaudited)	Quarter Ended								Change From
(In 000s, except per share data)
		Mar 31,			Dec 31,			Mar 31,		Dec 31, 2024					Mar 31, 2024
		2025			2024			2024		$		%			$		%
Earnings Ratios & Data
Net Income	$	2,377		$	2,162		$	2,650	$	215		10	%	$	(273	)	-10	%
Return on average assets		0.81%			0.74%			0.95%		0.07%					-0.14	%
Return on average equity		8.48%			7.27%			9.32%		1.21%					-0.84	%
Efficiency ratio ⁽¹⁾		75.86%			79.80%			74.21%		-3.94	%				1.65	%
Net-interest margin %⁽²⁾		4.12%			3.99%			4.38%		0.13%					-0.26	%

Share Ratios & Data
Basic earnings per share	$	0.24		$	0.21		$	0.26	$	0.03		14	%	$	(0.02	)	-8	%
Diluted earning per share	$	0.24		$	0.21		$	0.26	$	0.03		14	%	$	(0.02	)	-8	%
Book value per share⁽³⁾	$	11.67		$	11.26		$	11.10	$	0.41		4	%	$	0.57		5	%
Tangible book value per share⁽⁴⁾	$	10.33		$	9.93		$	9.80	$	0.40		4	%	$	0.53		5	%
Common shares outstanding		10,020			10,110			10,336		(90	)	-1	%		(316	)	-3	%
PFLC stock price	$	10.90		$	12.45		$	10.15	$	(1.55	)	-12	%	$	0.75		7	%
Dividends paid per share	$	0.14		$	0.14		$	0.14	$	–		0	%	$	–		0	%

Balance Sheet Data
Assets	$	1,218,969		$	1,153,563		$	1,134,586	$	65,406		6	%	$	84,383		7	%
Portfolio Loans	$	707,034		$	704,865		$	694,229	$	2,169		0	%	$	12,805		2	%
Deposits	$	1,074,646		$	1,014,731		$	995,756	$	59,915		6	%	$	78,890		8	%
Investments	$	305,377		$	304,502		$	288,439	$	875		0	%	$	16,938		6	%
Shareholders equity	$	116,949		$	113,856		$	114,725	$	3,093		3	%	$	2,224		2	%

Liquidity Ratios
Short-term funding to uninsured
and uncollateralized deposits		212%			217%			251%		-5	%				-39	%
Uninsured and uncollateralized
deposits to total deposits		24%			25%			22%		-1	%				2	%
Portfolio loans to deposits ratio		66%			69%			69%		-3	%				-3	%

Asset Quality Ratios
Non-performing assets to assets		0.10%			0.09%			0.13%		0.01%					-0.03	%
Non-accrual loans to portfolio loans		0.17%			0.16%			0.22%		0.01%					-0.05	%
Loan losses to avg portfolio loans		0.04%			-0.04	%		0.02%		0.08%					0.02	%
ACL to portfolio loans		1.26%			1.26%			1.24%		0.00%					0.02	%

Capital Ratios (PFC)
Total risk-based capital ratio		17.4%			17.5%			17.6%		-0.1	%				-0.2	%
Tier 1 risk-based capital ratio		16.3%			16.3%			16.5%		0.0%					-0.2	%
Common equity tier 1 ratio		14.7%			14.7%			14.8%		0.0%					-0.1	%
Leverage ratio		10.9%			11.3%			11.6%		-0.4	%				-0.7	%
Tangible common equity ratio		8.6%			8.8%			9.0%		-0.2	%				-0.4	%

⁽¹⁾ Non-interest expense divided by net interest income plus noninterest income.
⁽²⁾ Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.
⁽³⁾ Book value per share is calculated as the total common shareholders’ equity divided by the period ending number of common stock shares outstanding.
⁽⁴⁾ Tangible book value per share is calculated as the total common shareholders’ equity less total intangible assets and liabilities, divided by the period ending number of common stock shares outstanding.


INCOME STATEMENT (unaudited)	Quarter Ended								Change From
INCOME STATEMENT (unaudited)	Quarter Ended								Change From
($ in 000s)
		Mar 31,			Dec 31,			Mar 31,		Dec 31, 2024					Mar 31, 2024
		2025			2024			2024		$		%			$		%
Interest Income
Loan interest & fee income	$	10,304		$	10,340		$	10,224	$	(36	)	0	%	$	80		1	%
Interest earning cash income		1,208			942			935		266		28	%		273		29	%
Investment income		2,678			2,590			2,475		88		3	%		203		8	%
Interest Income		14,190			13,872			13,634		318		2	%		556		4	%

Interest Expense
Deposits interest expense		2,694			2,796			1,991		(102	)	-4	%		703		35	%
Other borrowings interest expense		206			225			242		(19	)	-8	%		(36	)	-15	%
Interest Expense		2,900			3,021			2,233		(121	)	-4	%		667		30	%
Net Interest Income		11,290			10,851			11,401		439		4	%		(111	)	-1	%
Provision(recapture) for credit losses		83			(103	)		33		186		-181	%		50		152	%
Net Interest Income after provision		11,207			10,954			11,368		253		2	%		(161	)	-1	%

Non-Interest Income
Fees and service charges		1,117			1,267			1,101		(150	)	-12	%		16		1	%
Gain on sale of investments, net		(165	)		–			–		(165	)	-100	%		(165	)	-100	%
Gain on sale of loans, net		(2	)		267			152		(269	)	-101	%		(154	)	-101	%
Income on bank-owned insurance		191			250			180		(59	)	-24	%		11		6	%
Other non-interest income		12			(9	)		11		21		-233	%		1		9	%
Non-Interest Income		1,153			1,775			1,444		(622	)	-35	%		(291	)	-20	%

Non-Interest Expense
Salaries and employee benefits		5,969			6,288			5,994		(319	)	-5	%		(25	)	0	%
Occupancy		592			768			641		(176	)	-23	%		(49	)	-8	%
Furniture, Fixtures & Equipment		302			289			284		13		4	%		18		6	%
Marketing & donations		153			149			154		4		3	%		(1	)	-1	%
Professional services		299			267			336		32		12	%		(37	)	-11	%
Data Processing & IT		1,218			1,380			1,191		(162	)	-12	%		27		2	%
Other		906			934			933		(28	)	-3	%		(27	)	-3	%
Non-Interest Expense		9,439			10,075			9,533		(636	)	-6	%		(94	)	-1	%
Income before income taxes		2,921			2,654			3,279		267		10	%		(358	)	-11	%
Provision for income taxes		544			492			629		52		11	%		(85	)	-14	%
Net Income	$	2,377		$	2,162		$	2,650	$	215		10	%		(273	)	-10	%

Effective tax rate		18.6%			18.5%			19.2%		0.1%					-0.6	%

BALANCE SHEET (unaudited)	Period Ended									Change from										% of Total
($ in 000s)	Period Ended									Change from										% of Total

		Mar 31,			Dec 31,			Mar 31,			Dec 31, 2024					Mar 31, 2024				Mar 31,		Dec 31,		Mar 31,
		2025			2024			2024			$		%			$		%		2025		2024		2024
Assets
Cash on hand and in banks	$	18,975		$	18,136		$	15,597		$	839		5	%	$	3,378		22	%	2	%	2	%	1	%
Interest earning deposits		124,854			62,015			75,705			62,839		101	%		49,149		65	%	10	%	5	%	7	%
Investment securities		305,377			304,502			288,439			875		0	%		16,938		6	%	25	%	26	%	25	%
Loans held-for-sale		–			–			–			–		-100	%		–		-100	%	0	%	0	%	0	%
Portfolio Loans, net of deferred fees		706,439			704,248			693,461			2,191		0	%		12,978		2	%	58	%	61	%	61	%
Allowance for credit losses		(8,890	)		(8,851	)		(8,580	)		(39	)	0	%		(310	)	4	%	-1	%	-1	%	-1	%
Net loans		697,549			695,397			684,881			2,152		0	%		12,668		2	%	57	%	60	%	60	%
Premises & equipment		16,702			16,952			15,283			(250	)	-1	%		1,419		9	%	1	%	1	%	1	%
Goodwill & Other Intangibles		13,435			13,435			13,435			–		0	%		–		0	%	1	%	1	%	1	%
Bank-owned life Insurance		28,204			28,333			27,678			(129	)	0	%		526		2	%	2	%	2	%	2	%
Other assets		13,873			14,793			13,568			(920	)	-6	%		305		2	%	2	%	3	%	3	%
Total Assets	$	1,218,969		$	1,153,563		$	1,134,586		$	65,406		6	%	$	84,383		7	%	100	%	100	%	100	%

Liabilities & Shareholders’ Equity
Deposits	$	1,074,646		$	1,014,731		$	995,756		$	59,915		6	%	$	78,890		8	%	88	%	88	%	88	%
Borrowings		13,403			13,403			13,403			–		0	%		–		0	%	1	%	1	%	1	%
Other liabilities		13,971			11,573			10,702			2,398		21	%		3,269		31	%	1	%	1	%	1	%
Shareholders’ equity		116,949			113,856			114,725			3,093		3	%		2,224		2	%	10	%	10	%	10	%
Liabilities & Shareholders’ Equity	$	1,218,969		$	1,153,563		$	1,134,586		$	65,406		6	%	$	84,383		7	%	100	%	100	%	100	%


INVESTMENT COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended									Change from										% of Total
INVESTMENT COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended									Change from										% of Total
($ in 000s)
		Mar 31,			Dec 31,			Mar 31,			Dec 31, 2024					Mar 31, 2024				Mar 31,		Dec 31,		Mar 31,
		2025			2024			2024			$		%			$		%		2025		2024		2024
Investment Securities
Collateralized mortgage obligations	$	156,105		$	147,262		$	129,213		$	8,843		6	%	$	26,892		21	%	51	%	48	%	45	%
Mortgage backed securities		40,396			46,112			37,753			(5,716	)	-12	%		2,643		7	%	13	%	15	%	13	%
U.S. Government and agency securities		68,392			67,716			77,826			676		1	%		(9,434	)	-12	%	22	%	22	%	27	%
Municipal securities		40,484			43,412			43,647			(2,928	)	-7	%		(3,163	)	-7	%	14	%	15	%	15	%
Investment Securities	$	305,377		$	304,502		$	288,439		$	875		0	%	$	16,938		6	%	100	%	100	%	100	%

Held to maturity securities	$	40,718		$	41,442		$	49,132		$	(724	)	-2	%	$	(8,414	)	-17	%	13	%	14	%	17	%
Available for sale securities	$	264,659		$	263,060		$	239,307		$	1,599		1	%	$	25,352		11	%	87	%	86	%	83	%

Government & Agency securities	$	264,866		$	261,063		$	244,762		$	3,803		1	%	$	20,104		8	%	87	%	86	%	85	%
AAA, AA, A rated securities	$	39,822		$	42,773		$	43,008		$	(2,951	)	-7	%	$	(3,186	)	-7	%	13	%	14	%	15	%
Non-rated securities	$	689		$	666		$	669		$	23		3	%	$	20		3	%	0	%	0	%	0	%

AFS Unrealized Gain (Loss)	$	(18,284	)	$	(22,437	)	$	(21,464	)	$	4,153		-19	%	$	3,180		-15	%	-6	%	-7	%	-7	%


LIQUIDITY (unaudited)	Period Ended									Change from										% of Deposits
($ in 000s)	Period Ended									Change from										% of Deposits

		Mar 31,			Dec 31,			Mar 31,			Dec 31, 2024					Mar 31, 2024				Mar 31,		Dec 31,		Mar 31,
		2025			2024			2024			$		%			$		%		2025		2024		2024
Short-term Funding
Cash and cash equivalents	$	129,616		$	67,951		$	80,052		$	61,665		91	%	$	49,564		62	%	12	%	7	%	8	%
Unencumbered AFS Securities		104,237			158,472			139,144			(54,235	)	-34	%		(34,907	)	-25	%	10	%	16	%	14	%
Secured lines of Credit (FHLB, FRB)		315,876			324,187			337,553			(8,311	)	-3	%		(21,677	)	-6	%	29	%	32	%	34	%
Short-term Funding	$	549,729		$	550,610		$	556,749		$	(881	)	0	%	$	(7,020	)	-1	%	51	%	54	%	56	%


PORTFOLIO LOAN COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended									Change from										% of Total
PORTFOLIO LOAN COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended									Change from										% of Total
($ in 000s)
		Mar 31,			Dec 31,			Mar 31,			Dec 31, 2024					Mar 31, 2024				Mar 31,		Dec 31,		Mar 31,
		2025			2024			2024			$		%			$		%		2025		2024		2024
Portfolio Loans
Commercial & agriculture	$	70,209		$	75,240		$	71,320		$	(5,031	)	-7	%	$	(1,111	)	-2	%	10	%	11	%	10	%
Real estate:
Construction and development		34,669			42,725			51,978			(8,056	)	-19	%		(17,309	)	-33	%	5	%	6	%	7	%
Residential 1-4 family		101,810			103,489			99,808			(1,679	)	-2	%		2,002		2	%	14	%	15	%	14	%
Multi-family		72,313			68,978			54,430			3,335		5	%		17,883		33	%	10	%	10	%	8	%
CRE — owner occupied		176,850			165,120			167,631			11,730		7	%		9,219		5	%	25	%	23	%	24	%
CRE — non owner occupied		160,022			159,582			157,322			440		0	%		2,700		2	%	23	%	23	%	23	%
Farmland		27,411			26,864			26,752			547		2	%		659		2	%	4	%	4	%	4	%
Consumer		63,750			62,867			64,988			883		1	%		(1,238	)	-2	%	9	%	8	%	10	%
Portfolio Loans		707,034			704,865			694,229			2,169		0	%		12,805		2	%	100	%	100	%	100	%
Less: ACL		(8,890	)		(8,851	)		(8,580	)
Less: deferred fees		(595	)		(617	)		(768	)
Net loans	$	697,549		$	695,397		$	684,881

Regulatory Commercial Real Estate	$	263,424		$	267,857		$	261,155		$	(4,433	)	-2	%	$	2,269		1	%	37	%	38	%	38	%
Total Risk Based Capital⁽¹⁾	$	139,133		$	139,458		$	139,255		$	(325	)	0	%	$	(122	)	0	%
CRE to Risk Based Capital⁽¹⁾		189%			192%			188%					-3	%				1	%


CRE–MULTI-FAMILY & NON OWNER OCCUPIED COMPOSITION (unaudited)	Period Ended									Change from										% of Total
	Period Ended									Change from										% of Total
($ in 000s)
		Mar 31,			Dec 31,			Mar 31,			Dec 31, 2024					Mar 31, 2024				Mar 31,		Dec 31,		Mar 31,
		2025			2024			2024			$		%			$		%		2025		2024		2024
Collateral Composition⁽²⁾
Multifamily	$	76,421		$	73,575		$	61,085		$	2,846		4	%	$	15,336		25	%	31	%	30	%	27	%
Retail		36,616			36,813			36,192			(197	)	-1	%		424		1	%	15	%	15	%	16	%
Hospitality		31,772			31,369			32,468			403		1	%		(696	)	-2	%	13	%	13	%	14	%
Office		23,975			23,921			23,730			54		0	%		245		1	%	10	%	10	%	10	%
Mixed Use		22,706			22,662			22,204			44		0	%		502		2	%	9	%	9	%	10	%
Mini Storage		22,654			25,028			23,438			(2,374	)	-9	%		(784	)	-3	%	9	%	10	%	10	%
Industrial		15,230			14,723			13,348			507		3	%		1,882		14	%	6	%	6	%	6	%
Warehouse		8,146			7,531			7,483			615		8	%		663		9	%	3	%	3	%	3	%
Special Purpose		6,874			6,921			7,058			(47	)	-1	%		(184	)	-3	%	3	%	3	%	3	%
Other		2,648			3,155			3,259			(507	)	-16	%		(611	)	-19	%	1	%	1	%	1	%
Total	$	247,042		$	245,698		$	230,265		$	1,344		1	%	$	16,777		7	%	100	%	100	%	100	%

⁽¹⁾ Bank of the Pacific
⁽²⁾ Includes loans in process of construction


CREDIT QUALITY (unaudited)	Period Ended									Change from
CREDIT QUALITY (unaudited)	Period Ended									Change from
($ in 000s)
		Mar 31,			Dec 31,			Mar 31,			Dec 31, 2024					Mar 31, 2024
		2025			2024			2024			$		%			$		%
Risk Rating Distribution
Pass	$	694,240		$	691,350		$	684,779		$	2,890		0	%	$	9,461		1	%
Special Mention		10,131			10,811			4,771			(680	)	-6	%		5,360		112	%
Substandard		2,663			2,704			4,679			(41	)	-2	%		(2,016	)	-43	%
Portfolio Loans	$	707,034		$	704,865		$	694,229		$	2,169		0	%	$	12,805		2	%

Nonperforming Assets
Nonaccruing loans		1,225			1,094			1,526		$	131		12	%		(301	)	-20	%
Other real estate owned		–			–			–			–		0	%		–		0	%
Nonperforming Assets	$	1,225		$	1,094		$	1,526		$	131		12	%		(301	)	-20	%

Credit Metrics
Classified loans¹ to portfolio loans		0.38%			0.38%			0.67%			0.00%					-0.29	%
ACL to classified loans¹		333.83%			327.33%			183.37%			6.50%					150.46	%
Loans past due 30+ days to portfolio loans²		0.04%			0.14%			0.10%			-0.10%					-0.06	%
Nonperforming assets to total assets		0.10%			0.09%			0.13%			0.01%					-0.03	%
Nonaccruing loans to portfolio loans		0.17%			0.16%			0.22%			0.01%					-0.05	%

⁽¹⁾ Classified loans include loans rated substandard or worse and are defined as loans having a well-defined weakness or weaknesses related to the borrower’s financial capacity or to pledged collateral that may jeopardize the repayment of the debt. They are characterized by the possibility that the Bank may sustain some loss if the deficiencies giving rise to the substandard classification are not corrected.
⁽²⁾ Excludes non-accrual loans


DEPOSIT COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended									Change from										% of Total
DEPOSIT COMPOSITION & CONCENTRATIONS (unaudited)	Period Ended									Change from										% of Total
($ in 000s)
		Mar 31,			Dec 31,			Mar 31,			Dec 31, 2024					Mar 31, 2024				Mar 31,		Dec 31,		Mar 31,
		2025			2024			2024			$		%			$		%		2025		2024		2024
Deposits
Interest-bearing demand	$	243,363		$	194,526		$	177,735		$	48,837		25	%	$	65,628		37	%	23	%	19	%	18	%
Money market		197,184			193,324			169,095			3,860		2	%		28,089		17	%	18	%	19	%	17	%
Savings		117,130			115,520			129,796			1,610		1	%		(12,666	)	-10	%	11	%	11	%	13	%
Time deposits (CDs)		134,226			135,485			114,644			(1,259	)	-1	%		19,582		17	%	12	%	13	%	12	%
Total interest-bearing deposits		691,903			638,855			591,270			53,048		8	%		100,633		17	%	64	%	62	%	60	%
Non-interest bearing demand		382,743			375,876			404,486			6,867		2	%		(21,743	)	-5	%	36	%	38	%	40	%
Total deposits	$	1,074,646		$	1,014,731		$	995,756		$	59,915		6	%	$	78,890		8	%	100	%	100	%	100	%

Insured Deposits	$	630,940		$	629,600		$	645,784		$	1,340		0	%	$	(385,920	)	-60	%	59	%	62	%	65	%
Collateralized Deposits		183,842			131,327			127,733			52,515		40	%		56,109		44	%	17	%	13	%	13	%
Uninsured Deposits		259,864			253,804			222,239			6,060		2	%		408,701		184	%	24	%	25	%	22	%
Total Deposits	$	1,074,646		$	1,014,731		$	995,756		$	59,915		6	%	$	78,890		8	%	100	%	100	%	100	%

Consumer Deposits	$	472,839		$	466,826		$	470,442		$	6,013		1	%	$	2,397		1	%	44	%	46	%	47	%
Business Deposits		407,974			406,308			387,917			1,666		0	%		20,057		5	%	38	%	40	%	39	%
Public Deposits		193,833			141,597			137,397			52,236		37	%		56,436		41	%	18	%	14	%	14	%
Total Deposits	$	1,074,646		$	1,014,731		$	995,756		$	59,915		6	%	$	78,890		8	%	100	%	100	%	100	%

NET INTEREST MARGIN (unaudited)	Quarter Ended									Change From
NET INTEREST MARGIN (unaudited)	Quarter Ended									Change From
($ in 000s)
		Mar 31,			Dec 31,			Mar 31,			Dec 31, 2024					Mar 31, 2024
		2025			2024			2024			$		%			$		%

Average Interest Bearing Balances
Portfolio loans	$	701,071		$	703,811		$	688,918		$	(2,740	)	0	%	$	12,153		2	%
Loans held for sale	$	–		$	1,033		$	595		$	(1,033	)	-100	%	$	(595	)	-100	%
Investment securities	$	305,074		$	302,501		$	292,375		$	2,573		1	%	$	12,699		4	%
Interest earning cash	$	110,007		$	78,296		$	68,873		$	31,711		41	%	$	41,134		60	%
Total interest-earning assets	$	1,116,152		$	1,085,641		$	1,050,761		$	30,511		3	%	$	65,391		6	%
Non-interest bearing deposits	$	378,470		$	388,227		$	395,004		$	(9,757	)	-3	%	$	(16,534	)	-4	%
Interest-bearing deposits	$	675,122		$	628,475		$	590,410		$	46,647		7	%	$	84,712		14	%
Total Deposits	$	1,053,592		$	1,016,702		$	985,414		$	36,890		4	%	$	68,178		7	%
Borrowings	$	13,403		$	13,403		$	13,403		$	–		0	%	$	–		0	%
Total interest-bearing liabilities	$	688,525		$	641,878		$	603,813		$	46,647		7	%	$	84,712		14	%

Yield / Cost $⁽¹⁾
Portfolio loans	$	10,316		$	10,336		$	10,233		$	(20	)	0	%	$	83		1	%
Loans held for sale	$	–		$	16		$	5		$	(16	)	-100	%	$	(5	)	-100	%
Investment securities	$	2,710		$	2,622		$	2,507		$	88		3	%	$	203		8	%
Interest-bearing cash	$	1,208		$	942		$	935		$	266		28	%	$	273		29	%
Total interest-earning assets	$	14,234		$	13,916		$	13,680		$	318		2	%	$	554		4	%
Interest-bearing deposits	$	2,694		$	2,796		$	1,991		$	(102	)	-4	%	$	703		35	%
Borrowings	$	206		$	225		$	242		$	(19	)	-8	%	$	(36	)	-15	%
Total interest-bearing liabilities	$	2,900		$	3,021		$	2,233		$	(121	)	-4	%	$	667		30	%
Net interest income	$	11,334		$	10,895		$	11,447		$	439		4	%	$	(113	)	-1	%

Yield / Cost %⁽¹⁾
Yield on portfolio loans		5.97	%		5.84	%		5.97	%		0.13	%				0.00	%
Yield on investment securities		3.60	%		3.45	%		3.45	%		0.15	%				0.15	%
Yield on interest-bearing cash		4.45	%		4.79	%		5.45	%		-0.34	%				-1.00	%
Cost of interest-bearing deposits		1.62	%		1.77	%		1.36	%		-0.15	%				0.26	%
Cost of borrowings		6.23	%		6.68	%		7.26	%		-0.45	%				-1.03	%
Cost of deposits and borrowings		1.10	%		1.17	%		0.90	%		-0.07	%				0.20	%

Yield on interest-earning assets		5.17	%		5.10	%		5.24	%		0.07	%				-0.07	%
Cost of interest-bearing liabilities		1.71	%		1.87	%		1.49	%		-0.16	%				0.22	%
Net interest spread		3.46	%		3.23	%		3.75	%		0.23	%				-0.29	%
Net interest margin		4.12	%		3.99	%		4.38	%		0.13	%				-0.26	%

⁽¹⁾ Tax-exempt income has been adjusted to a tax equivalent basis at a rate of 21%.


ALLOWANCE FOR CREDIT LOSSES (ACL) (unaudited)	Quarter Ended									Change From
ALLOWANCE FOR CREDIT LOSSES (ACL) (unaudited)	Quarter Ended									Change From
($ in 000s)
		Mar 31,			Dec 31,			Mar 31,			Dec 31, 2024					Mar 31, 2024
		2025			2024			2024			$		%			$		%
Allowance for Credit Losses
Beginning of period balance	$	8,851		$	8,897		$	8,530		$	(46	)	-1	%	$	321		4	%
Impact of CECL Adoption (ASC 326)		–			–			–			–		-100	%		–		-100	%
Charge-offs		(75	)		(32	)		(35	)		(43	)	134	%		(40	)	114	%
Recoveries		–			105			2			(105	)	-100	%		(2	)	-100	%
Net (charge-off) recovery		(75	)		73			(33	)		(148	)	-203	%		(42	)	127	%
Provision (recapture)		114			(119	)		83			233		-196	%		31		37	%
End of period balance	$	8,890		$	8,851		$	8,580		$	39		0	%	$	310		4	%

Net charge-off (recovery) to
average portfolio loans		0.04	%		-0.04	%		0.02	%		0.08	%				0.02	%
ACL to portfolio loans		1.26	%		1.26	%		1.24	%		0.00	%				0.02	%

Allowance for unfunded loans
Beginning of period balance	$	540		$	524		$	698		$	16		3	%	$	(158	)	-23	%
Impact of CECL Adoption (ASC 326)		–			–			–			–		-100	%		–		-100	%
Provision (recapture)		(31	)		16			(50	)		(47	)	-294	%		19		-38	%
End of period balance	$	509		$	540		$	648		$	(31	)	-6	%	$	(139	)	-21	%

ABOUT PACIFIC FINANCIAL CORPORATION

Pacific Financial Corporation of Aberdeen, Washington, is the bank holding company for Bank of the Pacific, a state chartered and federally insured commercial bank. Bank of the Pacific offers banking products and services to small-to-medium sized businesses and professionals in western Washington and Oregon. At March 31, 2025, the Company had total assets of $1.22 billion and operated fifteen branches in the communities of Grays Harbor, Pacific, Thurston, Whatcom, Skagit, Clark and Wahkiakum counties in the State of Washington, and three branches in the communities of Clatsop and Clackamas counties in Oregon. The Company also operated loan production offices in the communities of Burlington, Washington and Salem, Oregon. Visit the Company’s website at www.bankofthepacific.com. Member FDIC.

Cautions Concerning Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other laws, including all statements in this release that are not historical facts or that relate to future plans or events or projected results of Pacific Financial Corporation and its wholly-owned subsidiary, Bank of the Pacific. Such statements are based on information available at the time of communication and are based on current beliefs and expectations of the Company’s management and are subject to risks and uncertainties, many of which are beyond our control, which could cause actual events or results to differ materially from those projected, anticipated or implied, and could negatively impact the Company’s operating and stock price performance. These risks and uncertainties include various risks associated with growing the Bank and expanding the services it provides, development of new business lines and markets, competition in the marketplace, general economic conditions, changes in interest rates, extensive and evolving regulation of the banking industry, and many other risks. Any forward-looking statements in this communication are based on information at the time the statement is made. We undertake no obligation to update or revise any forward-looking statement. Readers of this release are cautioned not to put undue reliance on forward-looking statements.

Contacts:
Denise Portmann, President & CEO
Carla Tucker, EVP & CFO
360.533.8873

The MIL Network –

April 26, 2025

MIL-OSI: Preferred Bank Reports First Quarter Results

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, April 25, 2025 (GLOBE NEWSWIRE) — Preferred Bank (NASDAQ: PFBC), one of the larger independent California banks, today reported results for the quarter ended March 31, 2025. Preferred Bank (“the Bank”) reported net income of $30.0 million or $2.23 per diluted share for the first quarter of 2025. This represents a small decrease in net income of $197,000 from the prior quarter and a decrease of $3.4 million from the same quarter last year. The decrease compared to both periods was mainly due to a decrease in net interest income. In the first quarter of 2025, the incremental impact to interest income from loans placed on nonaccrual status was approximately $2.8 million. In addition, a property securing one of our loans was damaged in the Palisades fire in January and as a result, the Bank has reversed out the $208,000 interest receivable on this loan although we expect to recoup this amount after the property is sold. In addition to a lowering of overall interest rates, these were the main factors in the decrease in net interest income.

Net interest income was $62.7 million, a decrease of $6.5 million from the previous quarter and a decrease of $5.8 million compared to the same quarter last year. Noninterest income was $4.0 million, an increase of $361,000 over the prior quarter and an increase of $933,000 over the same quarter last year. Noninterest expense was $23.4 million, a decrease of $4.9 million from the previous quarter and an increase of $3.3 million over the same quarter last year.

Highlights for the Quarter:

Return on average assets was 1.76%
Return on beginning equity of 15.96%
Total deposits increased by $155.9 million or 2.6%, linked quarter
Efficiency ratio was 35.1%

Li Yu, Chairman and CEO, commented, “Preferred Bank’s net income for the first quarter, 2025 was $30.0 million or $2.23 per fully diluted share. This quarter, there was an outsized impact to interest income of approximately $2.8 million on nonaccrual loans. We have also written down the value of our one OREO property by $1.3 million.

Non-accrual loans totaled $78.9 million as of March 31, 2025 and are mostly comprised of two loans totaling $65.6 million. These two loans are well-secured, and we do not anticipate any losses associated with these two credits. Overall criticized loans have decreased to $129.2 million from $158.2 million at year-end. There were very few new migrations into the criticized loan category.

The large interest reversal of $2.8 million significantly affected the reported net interest margin, which was 3.75% for the quarter. Without that, the margin would have been much closer to the 4.06% reported in the fourth quarter of 2024. Deposit growth for the quarter was $155.9 million or 2.6% on a linked quarter basis. However, total loans reduced slightly from December 31, 2024. We do not feel there will be material changes in the loan demand in the near future under the shadow of the import tariff uncertainty.

The import tariff impositions and threats are truly unprecedented. At this time, we are still completely uncertain as to the size of the tariffs and which countries will ultimately be tariffed. In short, every American’s economic well-being will likely be impacted. Even if an agreement can be reached within the “90 days”, there seems to be no certainty that the issue will be completely resolved and this uncertainty may persist for a year or possibly more. We at Preferred Bank will stay alert and constantly monitoring our activities.

As a starting point, we have began a “deep-dive” within our relatively small “trade finance” portfolio and will continue to widen the scope of our credit monitoring activities related to trade.”

Results of Operations

Net Interest Income and Net Interest Margin. Net interest income before provision for credit losses was $62.7 million for the first quarter of 2025. This represents a $6.5 million decrease from the $69.2 million recorded in the prior quarter and a $5.8 million decrease from the same quarter last year. The decrease compared to both comparable quarters was primarily due to the reversal of interest income of $2.8 million associated with the nonaccrual loans. In addition, there was a property in the Palisades fire that secured a construction loan financed by the Bank. As part of that restructuring, the Bank elected to reverse $208,000 out of interest income that had accrued on that loan. Interest expense decreased compared to both comparable periods despite growth in deposits during the quarter. The Bank’s net interest margin came in at 3.75% for the quarter, this is down from the 4.06% recorded last quarter and from the 4.19% margin achieved in the first quarter of the prior year. The loan interest reversals played a major role in the decrease of the net interest margin in the first quarter. Management believes that efforts to reduce the Bank’s deposit costs have been largely effective as evidenced by the decreases in interest expense.

Noninterest Income. For the first quarter of 2025, noninterest income was $4.0 million compared with $3.1 million for the same quarter last year and compared to $3.6 million for the fourth quarter of 2024. The increase over the prior quarter was primarily due to letter of credit (LC) fee income which was up by $268,000 and gains on sales of SBA loans which increased by $163,000. In comparing to the same quarter last year, fee income was down but LC fee income increased by $741,000 and gains on sales of SBA loans increased by $172,000.

Noninterest Expense. Total noninterest expense was $23.4 million for the first quarter of 2025 compared to $28.2 million for the fourth quarter of 2024 and compared to the $20.0 million recorded in the same period last year. The primary reason for the decrease over the prior quarter was the $8.1 million occupancy expense adjustment recorded in the fourth quarter of 2024. This was related to accounting pronouncement ASC 842, accounting for leases. Partially offsetting that was an increase in personnel expense of $1.6 million and an increase in OREO expense of $1.4 million. In the first quarter of 2025, the Bank recorded a valuation charge of $1.3 million related to the OREO property in Santa Barbara. In comparing to the same quarter last year; personnel expense was up by $939,000, occupancy expense was up by $583,000 and OREO expense was up by $1.4 million due to the aforementioned OREO valuation charge recorded in the first quarter of 2025. Salary expense increased over the same quarter last year due mainly to an increase in personnel and merit increases. The increase in personnel expense over the prior quarter was primarily due to employer paid taxes as during the first quarter, incentive compensation is paid out to employees.

Income Taxes. The Bank recorded a provision for income taxes of $12.6 million for the first quarter of 2025. This represents an effective tax rate (“ETR”) of 29.5% which is up from the 29.0% ETR for last quarter and up from the 29.0% ETR recorded in the same period last year. The Bank’s ETR will fluctuate slightly from quarter to quarter within a fairly small range due to the timing of taxable events throughout the year.

Balance Sheet Summary

Total gross loans at March 31, 2025 were $5.63 billion, a decrease of $6.2 million from the total of $5.64 billion as of December 31, 2024. Total deposits were $6.07 billion, an increase of $155.9 million from the $5.92 billion as of December 31, 2024. Total assets were $7.1 billion, an increase of $176.7 million over the total of $6.92 billion as of December 31, 2024.

Asset Quality

Non-accrual loans and loans 90 days past due and still accruing totaled $78.9 million as of March 31, 2025. The bulk of the nonaccrual loans comprised of two loans totaling $65.6 million. One of the loans is a multi-family loan which is well-secured and the other loan is now vacant, entitled land in a prime area of Orange County. Again, this loan is also well-secured. The loans were part of the same relationship and one is now working its way through the bankruptcy court while the other loan is in the process of being sold, at par. Management is confident that there will be no loss associated with these two loans. Total net charge-offs (recoveries) for the quarter were ($97,000) compared to net charge-offs of $6.6 million in the prior quarter. In addition to that, the Bank wrote down the value of its OREO property in Santa Barbara by $1.34 million, reflecting the proposed net proceeds of the most recent sales contract that the Bank was involved in, which sale did not materialize.

Total criticized loans decreased to $129.2 million from $158.1 million reported in the prior quarter.

Allowance for Credit Losses

The provision for credit losses for the first quarter of 2025 was $700,000 compared to $2.0 million last quarter and compared to $4.4 million in the same quarter last year. The Bank’s allowance coverage ratio increased to 1.28% of loans as compared to 1.27% in the prior quarter.

Capitalization

As of March 31, 2025, the Bank’s tangible capital ratio was 10.96%, the leverage ratio was 11.52%, the common equity tier 1 capital ratio was 11.86% and the total capital ratio stood at 15.15%. As of December 31, 2024, the Bank’s tangible capital ratio was 11.02%, the Bank’s leverage ratio was 11.33%, the common equity tier 1 ratio was 11.80% and the total capital ratio was 15.11%.

Conference Call and Webcast

A conference call with simultaneous webcast to discuss Preferred Bank’s first quarter 2025 financial results will be held this afternoon April 25, 2025 at 2:00 p.m. Eastern / 11:00 a.m. Pacific. Interested participants and investors may access the conference call by dialing 844-826-3037 (domestic) or 412-317-5182 (international) and referencing “Preferred Bank.” There will also be a live webcast of the call available at the Investor Relations section of Preferred Bank’s website at www.preferredbank.com.

Preferred Bank’s Chairman and CEO Li Yu, President and Chief Operating Officer Wellington Chen, Chief Financial Officer Edward J. Czajka, Chief Credit Officer Nick Pi and Deputy Chief Operating Officer Johnny Hsu will discuss Preferred Bank’s financial results, business highlights and outlook. After the live webcast, a replay will be available at the Investor Relations section of Preferred Bank’s website. A replay of the call will also be available at 877-344-7529 (domestic) or 412-317-0088 (international) through May 2, 2025; the passcode is 8939265.

About Preferred Bank

Preferred Bank is one of the larger independent commercial banks headquartered in California. The Bank is chartered by the State of California, and its deposits are insured by the Federal Deposit Insurance Corporation, or FDIC, to the maximum extent permitted by law. The Bank conducts its banking business from its main office in Los Angeles, California, and through twelve full-service branch banking offices in California (Alhambra, Century City, City of Industry, Torrance, Arcadia, Irvine (2), Diamond Bar, Pico Rivera, Tarzana and San Francisco (2)), two branches in New York (Manhattan and Flushing, Queens) and a branch office in the Houston, Texas suburb of Sugar Land. In addition, the Bank also operates a loan production office in Sunnyvale, California. Preferred Bank offers a broad range of deposit and loan products and services to both commercial and consumer customers. The Bank provides personalized deposit services as well as real estate finance, commercial loans and trade finance to small and mid-sized businesses, entrepreneurs, real estate developers, professionals and high net worth individuals. Although originally founded as a Chinese-American Bank, Preferred Bank now derives most of its customers from the diversified mainstream market but does continue to benefit from the significant migration to California of ethnic Chinese from China and other areas of East Asia.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the Bank’s future financial and operating results, the Bank’s plans, objectives, expectations and intentions and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of the Bank’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: changes in economic conditions; changes in the California real estate market; the loss of senior management and other employees; natural disasters or recurring energy
shortage; changes in interest rates; competition from other financial services companies; ineffective underwriting practices; inadequate allowance for loan and lease losses to cover actual losses; risks inherent in construction lending; adverse economic conditions in Asia; downturn in international trade; inability to attract deposits; inability to raise additional capital when needed or on favorable terms; inability to manage growth; inadequate communications, information, operating and financial control systems, technology from fourth party service providers; the U.S. government’s monetary policies; government regulation; environmental liability with respect to properties to which the bank takes title; and the threat of terrorism. Additional factors that could cause the Bank’s results to differ materially from those described in the forward-looking statements can be found in the Bank’s 2024 Annual Report on Form 10-K filed with the Federal Deposit Insurance Corporation which can be found on Preferred Bank’s website. The forward-looking statements in this press release speak only as of the date of the press release, and the Bank assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those contained in the forward-looking statements. For additional information about Preferred Bank, please visit the Bank’s website at www.preferredbank.com.

AT THE COMPANY:	AT FINANCIAL PROFILES:
Edward J. Czajka	Jeffrey Haas
Executive Vice President	General Information
Chief Financial Officer	(310) 622-8240
(213) 891-1188	PFBC@finprofiles.com

Financial Tables to Follow


PREFERRED BANK
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except for net income per share and shares)


	For the Quarter Ended
	March 31,		December 31,		March 31,
		2025		2024		2024
Interest income:
Loans, including fees	$	101,491	$	111,596	$	109,980
Investment securities		12,810		14,013		16,257
Fed funds sold		228		249		283
Total interest income		114,529		125,858		126,520

Interest expense:
Interest-bearing demand		16,590		18,245		22,290
Savings		69		85		75
Time certificates		33,887		37,030		34,330
Subordinated debt		1,325		1,325		1,325
Total interest expense		51,871		56,685		58,020
Net interest income		62,658		69,173		68,500
Provision for credit losses		700		2,000		4,400
Net interest income after provision for credit losses		61,958		67,173		64,100

Noninterest income:
Fees & service charges on deposit accounts		716		761		845
Letters of credit fee income		2,244		1,977		1,503
BOLI income		103		102		105
Net gain on sale of loans		275		112		103
Other income		660		685		509
Total noninterest income		3,998		3,637		3,065

Noninterest expense:
Salary and employee benefits		14,839		13,279		13,900
Net occupancy expense		2,294		10,110		1,711
Business development and promotion expense		462		340		266
Professional services		1,651		1,606		1,457
Office supplies and equipment expense		386		396		473
OREO valuation allowance and related expense		1,531		155		135
Other		2,206		2,360		2,086
Total noninterest expense		23,369		28,246		20,028
Income before provision for income taxes		42,587		42,564		47,137
Income tax expense		12,563		12,343		13,671
Net income	$	30,024	$	30,221	$	33,466

Income per share available to common shareholders
Basic	$	2.27	$	2.29	$	2.48
Diluted	$	2.23	$	2.25	$	2.44

Weighted-average common shares outstanding
Basic		13,226,582		13,190,696		13,508,878
Diluted		13,453,176		13,442,294		13,736,986

Cash dividends per common share	$	0.75	$	0.75	$	0.70

PREFERRED BANK
Condensed Consolidated Statements of Financial Condition
(unaudited)
(in thousands)


	March 31,			December 31,
		2025			2024
	(Unaudited)			(Audited)
Assets
Cash and due from banks	$	905,183		$	765,515
Fed funds sold		20,000			20,000
Cash and cash equivalents		925,183			785,515

Securities held-to-maturity, at amortized cost		19,745			20,021
Securities available-for-sale, at fair value		390,096			348,706

Loans held for sale, at lower of cost or fair value		–			2,214

Loans		5,634,413			5,640,615
Less allowance for credit losses		(72,274	)		(71,477	)
Less amortized deferred loan fees, net		(9,652	)		(9,234	)
Loans, net		5,552,487			5,559,904

Other real estate owned and repossessed assets		13,650			14,991
Bank furniture and fixtures, net		8,276			8,462
Bank-owned life insurance		10,502			10,433
Accrued interest receivable		31,775			33,561
Investment in affordable housing partnerships		63,612			58,346
Federal Home Loan Bank stock, at cost		15,000			15,000
Deferred tax assets		46,280			47,402
Income tax receivable		–			2,195
Operating lease right-of-use assets		20,281			13,182
Other assets		3,205			3,497
Total assets	$	7,100,092		$	6,923,429

Liabilities and Shareholders’ Equity
Deposits:
Noninterest bearing demand deposits	$	730,270		$	704,859
Interest bearing deposits:		2,099,987			2,026,965
Savings		32,631			30,150
Time certificates of $250,000 or more		1,531,715			1,477,931
Other time certificates		1,678,132			1,676,943
Total deposits		6,072,735			5,916,848

Subordinated debt issuance, net		148,529			148,469
Commitments to fund investment in affordable housing partnerships		20,956			21,623
Operating lease liabilities		24,021			16,990
Accrued interest payable		14,634			16,517
Other liabilities		40,613			39,830
Total liabilities		6,321,488			6,160,277

Shareholders’ equity		778,604			763,152
Total liabilities and shareholders’ equity	$	7,100,092		$	6,923,429

Book value per common share	$	59.30		$	57.86
Number of common shares outstanding		13,130,296			13,188,776

PREFERRED BANK
Selected Consolidated Financial Information
(unaudited)
(in thousands, except for ratios)


	For the Quarter Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2025			2024			2024			2024			2024
Unaudited historical quarterly operations data:
Interest income	$	114,529		$	125,858		$	129,424		$	127,294		$	126,520
Interest expense		51,871			56,685			60,576			61,187			58,020
Interest income before provision for credit losses		62,658			69,173			68,848			66,107			68,500
Provision for credit losses		700			2,000			3,200			2,500			4,400
Noninterest income		3,998			3,637			3,459			3,404			3,065
Noninterest expense		23,369			28,246			22,089			19,697			20,028
Income tax expense		12,563			12,343			13,635			13,722			13,671
Net income	$	30,024		$	30,221		$	33,383		$	33,592		$	33,466

Earnings per share
Basic	$	2.27		$	2.29		$	2.50		$	2.51		$	2.48
Diluted	$	2.23		$	2.25		$	2.46		$	2.48		$	2.44

Ratios for the period:
Return on average assets		1.76	%		1.74	%		1.95	%		1.97	%		2.00	%
Return on beginning equity		15.96	%		16.03	%		18.37	%		19.31	%		19.36	%
Net interest margin (Fully-taxable equivalent)		3.75	%		4.06	%		4.10	%		3.96	%		4.19	%
Noninterest expense to average assets		1.37	%		1.62	%		1.29	%		1.15	%		1.20	%
Efficiency ratio		35.06	%		38.79	%		30.55	%		28.34	%		27.99	%
Net (recoveries) charge-offs to average loans (annualized)		-0.01	%		0.47	%		-0.00	%		0.68	%		0.26	%

Ratios as of period end:
Tangible common equity ratio		10.96	%		11.02	%		10.92	%		10.55	%		10.35	%
Tier 1 leverage capital ratio		11.52	%		11.33	%		11.28	%		10.89	%		10.80	%
Common equity tier 1 risk-based capital ratio		11.86	%		11.80	%		11.66	%		11.52	%		11.50	%
Tier 1 risk-based capital ratio		11.86	%		11.80	%		11.66	%		11.52	%		11.50	%
Total risk-based capital ratio		15.15	%		15.11	%		15.06	%		14.93	%		15.08	%
Allowances for credit losses to loans at end of period		1.28	%		1.27	%		1.36	%		1.34	%		1.49	%
Allowance for credit losses to non-performing loans	0.91		x	1.89		x		3.92	x		1.79	x		4.33	x

Average balances:
Total securities	$	402,754		$	350,732		$	356,590		$	353,357		$	348,961
Total loans		5,555,010			5,542,558			5,458,613			5,320,360			5,263,562
Total earning assets		6,780,438			6,788,487			6,684,766			6,728,498			6,585,853
Total assets		6,905,249			6,920,325			6,817,979			6,863,829			6,718,018
Total time certificate of deposits		3,164,766			3,144,523			2,874,985			2,884,259			2,852,860
Total interest bearing deposits		5,244,243			5,220,655			5,124,245			5,203,034			5,004,834
Total deposits		5,886,163			5,905,127			5,828,227			5,901,976			5,761,488
Total interest bearing liabilities		5,392,735			5,369,092			5,272,617			5,351,347			5,153,089
Total equity		779,339			760,345			747,222			715,190			704,996

PREFERRED BANK
Selected Consolidated Financial Information
(unaudited)
(in thousands, except for ratios)


				As of
				March 31,			December 31,			September 30,			June 30,			March 31,
				2025			2024			2024			2024			2024
Unaudited quarterly statement of financial position data:
Assets:
	Cash and cash equivalents			$	925,183		$	785,515		$	804,994		$	917,677		$	936,600
	Securities held-to-maturity, at amortized cost				19,745			20,021			20,311			20,605			20,904
	Securities available-for-sale, at fair value				390,096			348,706			337,363			331,909			333,411
	Loans:
		Real estate – Mortgage:
			Real estate—Residential	$	779,462		$	790,069		$	753,453		$	732,251		$	724,101
			Real estate—Commercial		2,897,956			2,840,771			2,882,506			2,833,430			2,777,608
			Total Real Estate – Mortgage		3,677,418			3,630,840			3,635,959			3,565,681			3,501,709
		Real estate – Construction:
			R/E Construction — Residential		306,283			296,580			274,214			238,062			236,596
			R/E Construction — Commercial		269,065			287,185			290,308			247,582			213,727
			Total real estate construction loans		575,348			583,765			564,522			485,644			450,323
		Commercial and industrial			1,374,379			1,418,930			1,365,550			1,371,694			1,369,529
		SBA			7,104			6,833			5,424			5,463			3,914
		Consumer and others			164			247			124			118			379
			Gross loans		5,634,413			5,640,615			5,571,579			5,428,600			5,325,854
	Allowance for credit losses on loans				(72,274	)		(71,477	)		(76,051	)		(72,848	)		(79,311	)
	Net deferred loan fees				(9,652	)		(9,234	)		(10,414	)		(10,502	)		(10,460	)
		Net loans, excluding loans held for sale		$	5,552,487		$	5,559,904		$	5,485,114		$	5,345,250		$	5,236,083
	Loans held for sale			$	–		$	2,214		$	225		$	955		$	605
		Net loans		$	5,552,487		$	5,562,118		$	5,485,339		$	5,346,205		$	5,236,688

	Other real estate owned and repossessed assets			$	13,650		$	14,991		$	15,082		$	16,716		$	16,716
	Investment in affordable housing partnerships				63,612			58,346			58,009			60,432			62,854
	Federal Home Loan Bank stock, at cost				15,000			15,000			15,000			15,000			15,000
	Other assets				120,319			118,732			136,246			138,036			134,040
		Total assets		$	7,100,092		$	6,923,429		$	6,872,344		$	6,846,580		$	6,756,213

Liabilities:
	Deposits:
		Demand		$	730,270		$	704,859		$	682,859		$	675,767		$	709,767
		Interest bearing demand			2,099,987			2,026,965			1,994,288			2,326,214			2,159,948
		Savings			32,631			30,150			29,793			28,251			29,261
		Time certificates of $250,000 or more			1,531,715			1,477,931			1,478,500			1,406,149			1,349,927
		Other time certificates			1,678,132			1,676,943			1,682,324			1,442,381			1,552,805
		Total deposits		$	6,072,735		$	5,916,848		$	5,867,764		$	5,878,762		$	5,801,708

	Subordinated debt issuance, net				148,529			148,469			148,410			148,351			148,292
	Commitments to fund investment in affordable housing partnerships				20,956			21,623			23,617			27,946			29,647
	Other liabilities				79,268			73,337			82,436			68,394			77,008
		Total liabilities		$	6,321,488		$	6,160,277		$	6,122,227		$	6,123,453		$	6,056,655

Equity:
	Net common stock, no par value			$	96,079		$	105,501		$	109,928		$	113,509		$	115,915
	Retained earnings				705,360			685,108			664,808			640,675			616,417
	Accumulated other comprehensive income				(22,835	)		(27,457	)		(24,619	)		(31,057	)		(32,774	)
		Total shareholders’ equity		$	778,604		$	763,152		$	750,117		$	723,127		$	699,558
		Total liabilities and shareholders’ equity		$	7,100,092		$	6,923,429		$	6,872,344		$	6,846,580		$	6,756,213

PREFERRED BANK
Quarter-to-Date Average Balances, Yield and Rates
(Unaudited)


			Three months ended March 31,							Three months ended December 31,							Three months ended March 31,
			2025							2024							2024
						Interest		Average					Interest		Average					Interest		Average
			Average			Income or		Yield/		Average			Income or		Yield/		Average			Income or		Yield/
			Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate
ASSETS			(Dollars in thousands)
Interest earning assets:
	Loans ^(1,2)		$	5,556,521		$	101,491	7.41	%	$	5,543,215		$	111,596	8.01	%	$	5,265,940		$	109,980	8.40	%
	Investment securities ⁽³⁾			402,754			4,093	4.12	%		350,732			3,566	4.04	%		348,961			3,430	3.95	%
	Federal funds sold			20,222			228	4.57	%		20,172			249	4.91	%		20,390			283	5.58	%
	Other earning assets			800,941			8,816	4.46	%		874,368			10,546	4.80	%		950,562			12,928	5.47	%
		Total interest earning assets		6,780,438			114,628	6.86	%		6,788,487			125,957	7.38	%		6,585,853			126,621	7.73	%
	Deferred loan fees, net			(9,189	)						(9,808	)						(10,694	)
	Allowance for credit losses on loans			(71,550	)						(75,474	)						(78,349	)
Noninterest earning assets:
	Cash and due from banks			11,513							10,626							11,244
	Bank furniture and fixtures			8,439							8,866							10,084
	Right of use assets			15,201							28,570							22,003
	Other assets			170,397							169,058							177,877
		Total assets	$	6,905,249						$	6,920,325						$	6,718,018

LIABILITIES AND SHAREHOLDERS’ EQUITY
Interest bearing liabilities:
	Deposits:
		Interest bearing demand and savings	$	2,079,477		$	16,659	3.25	%	$	2,076,132		$	18,330	3.51	%	$	2,151,974		$	22,365	4.18	%
		TCD $250K or more		1,482,324			15,640	4.28	%		1,481,219			17,514	4.70	%		1,341,298			16,501	4.95	%
		Other time certificates		1,682,442			18,247	4.40	%		1,663,304			19,516	4.67	%		1,511,562			17,829	4.74	%
		Total interest bearing deposits		5,244,243			50,546	3.91	%		5,220,655			55,360	4.22	%		5,004,834			56,695	4.56	%
Short-term borrowings				–			–	0.00	%		3			0	3.31	%		–			–	0.00	%
Subordinated debt, net				148,492			1,325	3.62	%		148,434			1,325	3.55	%		148,255			1,325	3.59	%
		Total interest bearing liabilities		5,392,735			51,871	3.90	%		5,369,092			56,685	4.20	%		5,153,089			58,020	4.53	%
Noninterest bearing liabilities:
	Demand deposits			641,920							684,472							756,654
	Lease liability			18,963							25,486							19,500
	Other liabilities			72,292							80,930							83,779
		Total liabilities		6,125,910							6,159,980							6,013,022
Shareholders’ equity				779,339							760,345							704,996
		Total liabilities and shareholders’ equity	$	6,905,249						$	6,920,325						$	6,718,018
Net interest income						$	62,757						$	69,272						$	68,601
Net interest spread								2.96	%						3.18	%						3.20	%
Net interest margin								3.75	%						4.06	%						4.19	%

Cost of Deposits:
	Noninterest bearing demand deposits		$	641,920						$	684,472						$	756,654
	Interest bearing deposits			5,244,243			50,546	3.91	%		5,220,655			55,360	4.22	%		5,004,834			56,695	4.56	%
		Total Deposits	$	5,886,163		$	50,546	3.48	%	$	5,905,127		$	55,360	3.73	%	$	5,761,488		$	56,695	3.96	%

⁽¹⁾	Includes non-accrual loans and loans held for sale
⁽²⁾	Net loan fee income of $865,000, $1.2 million, and $1.1 million for the quarter ended March 31, 2025, December 31, 2024 and March 31, 2024, respectively, are included in the yield computations
⁽³⁾	Yields on securities have been adjusted to a tax-equivalent basis

Preferred Bank
Loan and Credit Quality Information

Allowance For Credit Losses History
			Quarter Ended			Year Ended
			March 31, 2025			December 31, 2024
			(Dollars in 000’s)
Allowance For Credit Losses
Balance at Beginning of Period			$	71,477		$	78,355
	Charge-Offs
		Commercial & Industrial		–			19,028
		Total Charge-Offs		–			19,028

	Recoveries
		Commercial & Industrial		97			50
		Total Recoveries		97			50

	Net (Recoveries) Charge-Offs			(97	)		18,978
	Provision for Credit Losses:			700			12,100
Balance at End of Period			$	72,274		$	71,477

Average Loans Held for Investment			$	5,555,010		$	5,396,844
Loans Held for Investment at End of Period			$	5,634,413		$	5,640,615
Net (Recoveries) Charge-Offs to Average Loans				-0.01%			0.35%
Allowances for Credit Losses to Loans at End of Period				1.28%			1.27%

The MIL Network –

April 26, 2025

MIL-OSI: Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended March 31, 2025 and Declaration of Distributions on Common Stock for the Months Ending July 31, August 31, and September 30, 2025

Source: GlobeNewswire (MIL-OSI)

GREENWICH, Conn., April 25, 2025 (GLOBE NEWSWIRE) — Oxford Square Capital Corp. (NasdaqGS: OXSQ) (NasdaqGS: OXSQZ) (NasdaqGS: OXSQG) (the “Company,” “we,” “us” or “our”) announced today its financial results and related information for the quarter ended March 31, 2025.

On April 22, 2025, our Board of Directors declared the following distributions on our common stock:


Month Ending	Record Date	Payment Date	Amount Per Share
July 31, 2025	July 17, 2025	July 31, 2025	$0.035
August 31, 2025	August 15, 2025	August 29, 2025	$0.035
September 30, 2025	September 16, 2025	September 30, 2025	$0.035

Net asset value (“NAV”) per share as of March 31, 2025 stood at $2.09, compared with a NAV per share on December 31, 2024 of $2.30.

Net investment income (“NII”) was approximately $6.1 million, or $0.09 per share, for the quarter ended March 31, 2025, compared with approximately $6.0 million, or $0.09 per share, for the quarter ended December 31, 2024.
Total investment income for the quarter ended March 31, 2025 amounted to approximately $10.2 million, which was approximately the same as the quarter ended December 31, 2024.
- For the quarter ended March 31, 2025 we recorded investment income from our portfolio as follows:
  - $5.5 million from our debt investments;
  - $4.0 million from our CLO equity investments; and
  - $0.7 million from other income.
Our total expenses for the quarter ended March 31, 2025 were approximately $4.1 million, compared with total expenses of approximately $4.2 million for the quarter ended December 31, 2024.
As of March 31, 2025, the following metrics applied (note that none of these metrics represented a total return to shareholders):
- The weighted average yield of our debt investments was 14.3% at current cost, compared with 15.8% as of December 31, 2024;
- The weighted average effective yield of our CLO equity investments at current cost was 9.0%, compared with 8.8% as of December 31, 2024; and
- The weighted average cash distribution yield of our cash income producing CLO equity investments at current cost was 16.0%, compared with 16.2% as of December 31, 2024.
For the quarter ended March 31, 2025, we recorded a net decrease in net assets resulting from operations of approximately $8.1 million, consisting of:
- NII of approximately $6.1 million;
- Net realized losses of approximately $12.2 million; and
- Net unrealized depreciation of approximately $2.1 million.
During the first quarter of 2025, our investment activity consisted of purchases of approximately $16.0 million, sales of approximately $10.7 million and repayments of approximately $8.7 million.
Our weighted average credit rating was 2.2 based on total fair value and 2.3 based on total principal amount as of March 31, 2025, compared with a weighted average credit rating of 2.3 based on total fair value and 2.4 based on total principal amount as of December 31, 2024.
As of March 31, 2025, our preferred equity investments in one of our portfolio companies were on non-accrual status, which had an aggregate fair value of approximately $3.9 million.
For the quarter ended March 31, 2025, we issued a total of approximately 1.3 million shares of common stock pursuant to an “at-the-market” offering. After deducting the sales agent’s commissions and offering expenses, this resulted in net proceeds of approximately $3.5 million. As of March 31, 2025, we had approximately 71.2 million shares of common stock outstanding.

We will hold a conference call to discuss first quarter results today, Friday, April 25^th, 2025 at 9:00 AM ET. The toll-free dial-in number is 1-800-549-8228 and the conference identification number is 26294. There will be a recording available for 30 days. If you are interested in hearing the recording, please dial 1-888-660-6264. The replay pass-code number is 26294#.

A presentation containing further detail regarding our quarterly results of operations has been posted under the Investor Relations section of our website at www.oxfordsquarecapital.com.


OXFORD SQUARE CAPITAL CORP.

STATEMENTS OF ASSETS AND LIABILITIES
	March 31, 2025			December 31, 2024
	(unaudited)
ASSETS
Non-affiliated/non-control investments (cost: $342,775,122 and $358,356,496, respectively)	$	239,291,367		$	256,238,759
Affiliated investments (cost: $16,814,586 and $16,836,822, respectively)		3,890,986			4,614,100
Cash and cash equivalents		37,252,672			34,926,468
Interest and distributions receivable		2,426,368			2,724,049
Securities sold not settled		1,589,875			—
Other assets		1,039,370			1,227,598
Total assets	$	285,490,638		$	299,730,974
LIABILITIES
Notes payable – 6.25% Unsecured Notes, net of deferred issuance costs of $252,321 and $309,812, respectively	$	44,538,429		$	44,480,938
Notes payable – 5.50% Unsecured Notes, net of deferred issuance costs of $1,286,553 and $1,381,619 respectively		79,213,447			79,118,381
Securities purchased not settled		9,516,875			12,027,463
Base Fee and Net Investment Income Incentive Fee payable to affiliate		1,058,784			1,215,964
Accrued interest payable		1,204,487			1,204,487
Accrued expenses		1,076,306			1,018,261
Total liabilities		136,608,328			139,065,494
COMMITMENTS AND CONTINGENCIES
NET ASSETS
Common stock, $0.01 par value, 100,000,000 shares authorized; 71,187,166 and 69,758,938 shares issued and outstanding, respectively		711,872			697,590
Capital in excess of par value		491,617,243			487,943,476
Total distributable earnings/(accumulated losses)		(343,446,805	)		(327,975,586	)
Total net assets		148,882,310			160,665,480
Total liabilities and net assets	$	285,490,638		$	299,730,974
Net asset value per common share	$	2.09		$	2.30


OXFORD SQUARE CAPITAL CORP.

STATEMENTS OF OPERATIONS (unaudited)

	Three Months Ended March 31, 2025			Three Months Ended March 31, 2024
INVESTMENT INCOME
From non-affiliated/non-control investments:
Interest income – debt investments	$	5,534,755		$	6,421,047
Income from securitization vehicles and investments		3,956,053			3,932,374
Other income		670,242			324,003
Total investment income from non-affiliated/non-control investments		10,161,050			10,677,424
Total investment income		10,161,050			10,677,424
EXPENSES
Interest expense		1,959,287			1,960,982
Base Fee		1,058,785			987,816
Professional fees		323,452			311,747
Compensation expense		239,577			206,898
General and administrative		355,259			346,625
Excise tax		120,816			325,800
Total expenses before incentive fees		4,057,176			4,139,868
Net Investment Income Incentive Fees		—			—
Total incentive fees		—			—
Total expenses		4,057,176			4,139,868
Net investment income		6,103,874			6,537,556
NET UNREALIZED (DEPRECIATION)/APPRECIATION AND REALIZED LOSSES ON INVESTMENT TRANSACTIONS
Net change in unrealized (depreciation)/appreciation on investments:
Non-Affiliate/non-control investments		(1,366,018	)		145,111
Affiliated investments		(700,878	)		(356,117	)
Total net change in unrealized depreciation on investments		(2,066,896	)		(211,006	)
Net realized losses:
Non-affiliated/non-control investments		(12,158,495	)		(8,094,940	)
Total net realized losses		(12,158,495	)		(8,094,940	)
Net decrease in net assets resulting from operations	$	(8,121,517	)	$	(1,768,390	)
Net increase in net assets resulting from net investment income per common share (Basic and Diluted):	$	0.09		$	0.11
Net decrease in net assets resulting from operations per common share (Basic and Diluted):	$	(0.12	)	$	(0.03	)
Weighted average shares of common stock outstanding (Basic and Diluted):		69,984,752			59,639,285
Distributions per share	$	0.105		$	0.105

FINANCIAL HIGHLIGHTS (Unaudited)

	Three Months Ended March 31, 2025			Three Months Ended March 31, 2024
Per Share Data
Net asset value at beginning of period	$	2.30		$	2.55
Net investment income⁽¹⁾		0.09			0.11
Net realized and unrealized losses⁽²⁾		(0.20	)		(0.13	)
Net decrease in net asset value from operations		(0.11	)		(0.02	)
Distributions per share from net investment income		(0.11	)		(0.11	)
Tax return of capital distributions⁽³⁾		—			—
Total distributions		(0.11	)		(0.11	)
Effect of shares issued/repurchased, gross		0.01			—
Net asset value at end of period	$	2.09		$	2.42
Per share market value at beginning of period	$	2.44		$	2.86
Per share market value at end of period	$	2.61		$	3.17
Total return based on Market Value⁽⁴⁾		11.39	%		14.63	%
Total return based on Net Asset Value⁽⁵⁾		(4.57	)%		(0.98	)%
Shares outstanding at end of period		71,187,166			59,672,337

Ratios/Supplemental Data⁽⁸⁾
Net assets at end of period (000’s)	$	148,882		$	144,340
Average net assets (000’s)	$	153,493		$	148,260
Ratio of expenses to average net assets⁽⁶⁾		10.57	%		11.17	%
Ratio of net investment income to average net assets⁽⁶⁾		15.91	%		17.64	%
Portfolio turnover rate⁽⁷⁾		6.26	%		3.09	%

____________

(1)	Represents per share net investment income for the period, based upon weighted average shares outstanding.
(2)	Net realized and unrealized losses include rounding adjustments to reconcile change in net asset value per share.
(3)	Management monitors available taxable earnings, including net investment income and realized capital gains, to determine if a tax return of capital may occur for the year. To the extent the Company’s taxable earnings fall below the total amount of the Company’s distributions for that fiscal year, a portion of those distributions may be deemed a tax return of capital to the Company’s stockholders. The ultimate tax character of the Company’s earnings cannot be determined until tax returns are prepared after the end of the fiscal year. The amounts and sources of distributions reported are only estimates (based on an average of the reported tax character historically) and are not being provided for U.S. tax reporting purposes.
(4)	Total return based on market value equals the increase or decrease of ending market value over beginning market value, plus distributions, divided by the beginning market value, assuming distribution reinvestment prices obtained under the Company’s distribution reinvestment plan. Total return is not annualized.
(5)	Total return based on net asset value equals the increase or decrease of ending net asset value over beginning net asset value, plus distributions, divided by the beginning net asset value. Total return is not annualized.
(6)	Annualized and includes excise tax.
(7)	Portfolio turnover rate is calculated using the lesser of the year-to-date investment sales and debt repayments or year-to-date investment purchases over the average of the total investments at fair value.
(8)	The following table provides supplemental performance ratios (annualized) measured for the three months ended March 31, 2025 and 2024:

	Three Months Ended March 31, 2025		Three Months Ended March 31, 2024
Ratio of expenses to average net assets:
Operating expenses before incentive fees	10.57	%	11.17	%
Net investment income incentive fees	—	%	—	%
Ratio of expenses, excluding interest expense to average net assets	5.47	%	5.88	%

About Oxford Square Capital Corp.

Oxford Square Capital Corp. is a publicly-traded business development company principally investing in syndicated bank loans and, to a lesser extent, debt and equity tranches of collateralized loan obligation (“CLO”) vehicles. CLO investments may also include warehouse facilities, which are financing structures intended to aggregate loans that may be used to form the basis of a CLO vehicle.

Forward-Looking Statements

This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statements of historical fact (including statements containing the words “believes,” “plans,” “anticipates,” “expects,” “estimates” and similar expressions) should also be considered to be forward-looking statements. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events, except as may be required by law.

Contact:
Bruce Rubin
203-983-5280

The MIL Network –

April 26, 2025

MIL-OSI Economics: Phillips 66 Reports First-Quarter Results

Source: Phillips

Reported first-quarter earnings of $487 million or $1.18 per share; adjusted loss of $368 million or $0.90 per share; including $246 million of pre-tax accelerated depreciation on Los Angeles Refinery
Returned $716 million to shareholders through dividends and share repurchases
Received $2.0 billion in cash proceeds from the previously announced sales of non-operated equity interests in Coop Mineraloel AG and Gulf Coast Express Pipeline LLC
Sanctioned construction of new gas processing plant in the Permian
Recently closed on acquisition of EPIC Y-Grade GP, LLC and EPIC Y-Grade LP

HOUSTON–(BUSINESS WIRE)– Phillips 66 (NYSE: PSX), a leading integrated downstream energy provider, announced first-quarter earnings.
“Our results reflect not only a challenging macro environment, but also the impact from one of our largest-ever spring turnaround programs, managed safely, on-time and under budget. Our assets, not impacted by planned maintenance, ran well,” said Mark Lashier, chairman and CEO of Phillips 66. “With the bulk of our turnarounds behind us, we are well positioned to capture stronger margins as the year unfolds.
“The acquisition of EPIC NGL earlier this month, and today’s announcement that we are constructing a new gas plant in the Permian, furthers our integrated NGL wellhead-to-market strategy, providing stable cash flow in uncertain market environments, enabling us to consistently return over 50% of net operating cash flow to shareholders.”
Financial Results Summary (in millions of dollars, except as indicated)

1Q 2025

4Q 2024

Earnings

$

487

8

Adjusted (Loss)1

(368)

(61)

Adjusted EBITDA1

736

1,130

Earnings (Loss) Per Share

Earnings Per Share – Diluted

1.18

0.01

Adjusted (Loss) Per Share – Diluted1

(0.90)

(0.15)

Cash Flow From Operations

187

1,198

Cash Flow From Operations, Excluding Working Capital1

259

901

Capital Expenditures & Investments2

423

506

Return of Capital to Shareholders

716

1,119

Repurchases of common stock

247

647

Dividends paid on common stock

469

472

Cash

1,489

1,738

Debt

18,803

20,062

Debt-to-capital ratio

40%

41%

Net debt-to-capital ratio1

38%

39%

1Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.

2Excludes net acquisitions of $58 million in the fourth quarter of 2024.

Segment Financial and Operating Highlights (in millions of dollars, except as indicated)

1Q 2025

4Q 2024

Change

Earnings (Loss)1

$

487

8

479

Midstream

751

673

78

Chemicals

113

107

6

Refining

(937)

(775)

(162)

Marketing and Specialties

1,282

252

1,030

Renewable Fuels

(185)

28

(213)

Corporate and Other

(376)

(298)

(78)

Income tax (expense) benefit

(122)

38

(160)

Noncontrolling interests

(39)

(17)

(22)

Adjusted Earnings (Loss)1,2

$

(368)

(61)

(307)

Midstream

683

708

(25)

Chemicals

113

72

41

Refining

(937)

(759)

(178)

Marketing and Specialties

265

185

80

Renewable Fuels

(185)

28

(213)

Corporate and Other

(355)

(294)

(61)

Income tax benefit

78

16

62

Noncontrolling interests

(30)

(17)

(13)

Adjusted EBITDA2

$

736

1,130

(394)

Midstream

885

938

(53)

Chemicals

244

209

35

Refining

(452)

(298)

(154)

Marketing and Specialties

315

307

8

Renewable Fuels

(162)

50

(212)

Corporate and Other

(94)

(76)

(18)

Operating Highlights

Pipeline Throughput – Y-Grade to Market (MB/D)3

704

759

(55)

Chemicals Global O&P Capacity Utilization

100%

98%

2%

Refining

Turnaround Expense

270

123

147

Realized Margin ($/BBL)2

6.81

6.08

0.73

Crude Capacity Utilization

80%

94%

(14%)

Clean Product Yield

87%

88%

(1%)

Renewable Fuels Produced (MB/D)

44

42

2

1Segment reporting is pre-tax.

2Represents a non-GAAP financial measure. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.

3Represents volumes delivered to major fractionation hubs, including Mont Belvieu, Sweeny and Conway. Includes 100% of DCP Midstream Class A Segment and Phillips 66’s direct interest in DCP Sand Hills Pipeline, LLC and DCP Southern Hills Pipeline, LLC.

First-Quarter 2025 Financial Results
Reported earnings were $487 million for the first quarter of 2025 versus $8 million in the fourth quarter of 2024. First-quarter earnings included pre-tax special item adjustments of $1.0 billion in the Marketing and Specialties segment, $68 million in the Midstream segment and $(21) million impacting the Corporate and Other segment. Adjusted losses for the first quarter were $368 million versus $61 million in the fourth quarter.
Midstream first-quarter 2025 adjusted pre-tax income decreased compared with the fourth quarter mainly due to lower volumes, partially offset by higher margins primarily driven by gathering and processing results.
Chemicals adjusted pre-tax income increased mainly due to higher volumes and lower costs.
Refining adjusted pre-tax loss increased primarily due to lower volumes and higher costs driven by planned turnaround activity, partially offset by increased realized margins from higher market crack spreads.
Marketing and Specialties adjusted pre-tax income increased primarily due to stronger international results.
Renewable Fuels pre-tax results decreased primarily due to the transition from blenders tax credits to production tax credits, inventory impacts and lower international results.
Corporate and Other adjusted pre-tax loss increased mainly due to higher net interest expense, a decrease in the fair value of the company’s investment in NOVONIX and timing of charitable contributions. The company’s first-quarter effective tax rate was 19%.
As of March 31, 2025, the company had $1.5 billion of cash and cash equivalents and $5.4 billion of committed capacity available under credit facilities. Total debt was $18.8 billion, a reduction of $1.3 billion from the prior quarter.
Business Highlights and Strategic Priorities Progress
Distributed $14.3 billion to shareholders through share repurchases and dividends since July 2022.
Recently announced a $0.05 per share quarterly dividend increase, reflecting our commitment to a secure, competitive and growing dividend.
Advanced wellhead-to-market strategy with the announcement of the Iron Mesa gas plant, a 300 MMCF/D facility in the Permian providing gas processing services for Delaware and Midland Basin production. This plant is expected to commence operations in the first quarter of 2027.
Completed Sweeny Refinery crude flexibility project during the first quarter turnaround, enabling approximately 40 MBD of switching capability between heavy and light crudes.
Investor Webcast
Members of Phillips 66 executive management will host a webcast at noon ET to provide an update on the company’s strategic initiatives and discuss the company’s first-quarter performance. To access the webcast and view related presentation materials, go to phillips66.com/investors and click on “Events & Presentations.” For detailed supplemental information, go to phillips66.com/supplemental.
About Phillips 66
Phillips 66 (NYSE: PSX) is a leading integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, Marketing and Specialties, and Renewable Fuels businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.
Use of Non-GAAP Financial Information—This news release includes the terms “adjusted earnings (loss),” “adjusted pre-tax income (loss),” “adjusted EBITDA,” “adjusted earnings (loss) per share,” “refining realized margin per barrel,” “cash from operations, excluding working capital,” and “net debt-to-capital ratio.” These are non-GAAP financial measures that are included to help facilitate comparisons of operating performance across periods, to help facilitate comparisons with other companies in our industry and to help facilitate determination of enterprise value. Where applicable, these measures exclude items that do not reflect the core operating results of our businesses in the current period or other adjustments to reflect how management analyzes results. Reconciliations of these non-GAAP financial measures to the most comparable GAAP financial measure are included within this release.
References in the release to earnings refer to net income attributable to Phillips 66.
Basis of Presentation— Effective April 1, 2024, we changed the internal financial information reviewed by our chief executive officer to evaluate performance and allocate resources to our operating segments. This included changes in the composition of our operating segments, as well as measurement changes for certain activities between our operating segments. The primary effects of this realignment included establishment of a Renewable Fuels operating segment, which includes renewable fuels activities and assets historically reported in our Refining, Marketing and Specialties (M&S), and Midstream segments; change in method of allocating results for certain Gulf Coast distillate export activities from our M&S segment to our Refining segment; reclassification of certain crude oil and international clean products trading activities between our M&S segment and our Refining segment; and change in reporting of our investment in NOVONIX from our Midstream segment to Corporate and Other. Accordingly, prior period results have been recast for comparability.
In the third quarter of 2024, we began presenting the line item “Capital expenditures and investments” on our consolidated statement of cash flows exclusive of acquisitions, net of cash acquired. Accordingly, prior period information has been reclassified for comparability.
Cautionary Statement for the Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995—This news release contains forward-looking statements within the meaning of the federal securities laws relating to Phillips 66’s operations, strategy and performance. Words such as “anticipated,” “estimated,” “expected,” “planned,” “scheduled,” “targeted,” “believe,” “continue,” “intend,” “will,” “would,” “objective,” “goal,” “project,” “efforts,” “strategies,” “priorities” and similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. However, the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements included in this news release are based on management’s expectations, estimates and projections as of the date they are made. These statements are not guarantees of future events or performance, and you should not unduly rely on them as they involve certain risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements include: changes in governmental policies relating to NGL, crude oil, natural gas, refined petroleum or renewable fuels products pricing, regulation or taxation, including exports; our ability to timely obtain or maintain permits, including those necessary for capital projects; fluctuations in NGL, crude oil, refined petroleum products, renewable fuels, renewable feedstocks and natural gas prices, and refined product, marketing and petrochemical margins; the effects of any widespread public health crisis and its negative impact on commercial activity and demand for our products; changes to government policies relating to renewable fuels and greenhouse gas emissions that adversely affect programs including the renewable fuel standards program, low carbon fuel standards and tax credits for biofuels; liability resulting from pending or future litigation or other legal proceedings; liability for remedial actions, including removal and reclamation obligations under environmental regulations; unexpected changes in costs or technical requirements for constructing, modifying or operating our facilities or transporting our products; our ability to successfully complete, or any material delay in the completion of, any asset disposition, acquisition, shutdown or conversion that we may pursue, including receipt of any necessary regulatory approvals or permits related thereto; unexpected technological or commercial difficulties in manufacturing, refining or transporting our products, including chemical products; the level and success of producers’ drilling plans and the amount and quality of production volumes around our midstream assets; risks and uncertainties with respect to the actions of actual or potential competitive suppliers and transporters of refined petroleum products, renewable fuels or specialty products; changes in the cost or availability of adequate and reliable transportation for our NGL, crude oil, natural gas and refined petroleum and renewable fuels products; failure to complete definitive agreements and feasibility studies for, and to complete construction of, announced and future capital projects on time or within budget; our ability to comply with governmental regulations or make capital expenditures to maintain compliance; limited access to capital or significantly higher cost of capital related to our credit profile or illiquidity or uncertainty in the domestic or international financial markets; damage to our facilities due to accidents, weather and climate events, civil unrest, insurrections, political events, terrorism or cyberattacks; domestic and international economic and political developments including armed hostilities, such as the war in Eastern Europe, instability in the financial services and banking sector, excess inflation, expropriation of assets and changes in fiscal policy, including interest rates; international monetary conditions and exchange controls; changes in estimates or projections used to assess fair value of intangible assets, goodwill and properties, plants and equipment and/or strategic decisions or other developments with respect to our asset portfolio that cause impairment charges; substantial investments required, or reduced demand for products, as a result of existing or future environmental rules and regulations, including greenhouse gas emissions reductions and reduced consumer demand for refined petroleum products; changes in tax, environmental and other laws and regulations (including alternative energy mandates) applicable to our business; political and societal concerns about climate change that could result in changes to our business or increase expenditures, including litigation-related expenses; the operation, financing and distribution decisions of our joint ventures that we do not control; the potential impact of activist shareholder actions or tactics; and other economic, business, competitive and/or regulatory factors affecting Phillips 66’s businesses generally as set forth in our filings with the Securities and Exchange Commission. Phillips 66 is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise.

Earnings (Loss)

Millions of Dollars

2025

2024

1Q

4Q

1Q

Midstream

$

751

673

554

Chemicals

113

107

205

Refining

(937

)

(775

)

216

Marketing and Specialties

1,282

252

366

Renewable Fuels

(185

)

28

(55

)

Corporate and Other

(376

)

(298

)

(322

)

Pre-Tax Income (Loss)

648

(13

)

964

Less: Income tax expense (benefit)

122

(38

)

203

Less: Noncontrolling interests

39

17

13

Phillips 66

$

487

8

748

Adjusted Earnings (Loss)

Millions of Dollars

2025

2024

1Q

4Q

1Q

Midstream

$

683

708

613

Chemicals

113

72

205

Refining

(937

)

(759

)

313

Marketing and Specialties

265

185

307

Renewable Fuels

(185

)

28

(55

)

Corporate and Other

(355

)

(294

)

(322

)

Pre-Tax Income (Loss)

(416

)

(60

)

1,061

Less: Income tax expense (benefit)

(78

)

(16

)

226

Less: Noncontrolling interests

30

17

13

Phillips 66

$

(368

)

(61

)

822

Millions of Dollars

Except as Indicated

2025

2024

1Q

4Q

1Q

Reconciliation of Consolidated Earnings to Adjusted Earnings (Loss)

Consolidated Earnings

$

487

8

748

Pre-tax adjustments:

Certain tax impacts

—

(9

)

—

Impairments

21

35

163

Net gain on asset dispositions1

(1,085

)

(67

)

—

Winter-storm-related costs (recovery)

—

(35

)

—

Los Angeles Refinery cessation costs

—

7

—

Legal accrual

—

22

—

Legal settlement

—

(66

)

Tax impact of adjustments2

200

9

(23

)

Other tax impacts

—

(31

)

—

Noncontrolling interests

9

—

Adjusted earnings (loss)

$

(368

)

(61

)

822

Earnings per share of common stock (dollars)

$

1.18

0.01

1.73

Adjusted earnings (loss) per share of common stock (dollars)3

$

(0.90

)

(0.15

)

1.90

Reconciliation of Segment Pre-Tax Income (Loss) to Adjusted Pre-Tax Income (Loss)

Midstream Pre-Tax Income

$

751

673

554

Pre-tax adjustments:

Impairments

—

35

59

Net gain on asset disposition1

(68

)

—

Adjusted pre-tax income

$

683

708

613

Chemicals Pre-Tax Income

$

113

107

205

Pre-tax adjustments:

Winter-storm-related costs (recovery)

—

(35

)

—

Adjusted pre-tax income

$

113

72

205

Refining Pre-Tax Income (Loss)

$

(937

)

(775

)

216

Pre-tax adjustments:

Impairments

—

104

Los Angeles Refinery cessation costs

—

3

—

Certain tax impacts

—

(9

)

—

Net loss on asset disposition

—

Legal accrual

—

22

—

Legal settlement

—

(7

)

Adjusted pre-tax income (loss)

$

(937

)

(759

)

313

Marketing and Specialties Pre-Tax Income (Loss)

$

1,282

252

366

Pre-tax adjustments:

Net gain on asset disposition1

(1,017

)

(67

)

—

Legal settlement

—

(59

)

Adjusted pre-tax income

$

265

185

307

Renewable Fuels Pre-Tax Income (Loss)

$

(185

)

28

(55

)

Pre-tax adjustments:

None

—

Adjusted pre-tax income (loss)

$

(185

)

28

(55

)

Corporate and Other Pre-Tax Loss

$

(376

)

(298

)

(322

)

Pre-tax adjustments:

Impairments

21

—

Los Angeles Refinery cessation costs

—

4

—

Adjusted pre-tax loss

$

(355

)

(294

)

(322

)

1 Gain on disposition of our 49% non-operated equity interest in Coop Mineraloel AG in 1Q 2025. In connection with this sale, a before-tax unrealized gain was recognized from a foreign currency derivative in 4Q 2024. These were reported in the Marketing and Specialties segment. There was also a gain on the disposition of DCP Midstream, LP’s 25% interest in Gulf Coast Express Pipeline LLC, recognized in our Midstream segment.

2We generally tax effect taxable U.S.-based special items using a combined federal and state annual statutory income tax rate of approximately 24%. Taxable special items attributable to foreign locations likewise generally use a local statutory income tax rate. Nontaxable events reflect zero income tax. These events include, but are not limited to, most goodwill impairments, transactions legislatively exempt from income tax, transactions related to entities for which we have made an assertion that the undistributed earnings are permanently reinvested, or transactions occurring in jurisdictions with a valuation allowance.

31Q 2025, 4Q 2024 and 1Q 2024 are based on adjusted weighted-average diluted shares of 409,182 thousand, 411,687 thousand and 432,158 thousand respectively. Income allocated to participating securities, if applicable, in the adjusted earnings per share calculation is the same as that used in the GAAP diluted earnings per share calculation.

Millions of Dollars

Except as Indicated

2025

2024

1Q

4Q

Reconciliation of Consolidated Net Income to Adjusted EBITDA

Net Income

$

526

25

Plus:

Income tax expense

122

(38

)

Net interest expense

187

168

Depreciation and amortization

791

819

Phillips 66 EBITDA

$

1,626

974

Special Item Adjustments (pre-tax):

Certain tax impacts

—

(9

)

Impairments

21

35

Winter-storm-related costs (recovery)

—

(35

)

Net gain on asset disposition

(1,085

)

(67

)

Los Angeles Refinery cessation costs

—

7

Legal accrual

—

22

Total Special Item Adjustments (pre-tax)

(1,064

)

(47

)

Change in Fair Value of NOVONIX Investment

15

1

Phillips 66 EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment

$

577

928

Other Adjustments (pre-tax):

Proportional share of selected equity affiliates income taxes

18

17

Proportional share of selected equity affiliates net interest

14

Proportional share of selected equity affiliates depreciation and amortization

187

209

Adjusted EBITDA attributable to noncontrolling interests

(60

)

(38

)

Phillips 66 Adjusted EBITDA

$

736

1,130

Reconciliation of Segment Income before Income Taxes to Adjusted EBITDA

Midstream Income before income taxes

$

751

673

Plus:

Depreciation and amortization

233

234

Midstream EBITDA

$

984

907

Special Item Adjustments (pre-tax):

Net gain on asset disposition

(68

)

—

Impairments

—

35

Midstream EBITDA, Adjusted for Special Items

$

916

942

Other Adjustments (pre-tax):

Proportional share of selected equity affiliates income taxes

3

Proportional share of selected equity affiliates net interest

3

Proportional share of selected equity affiliates depreciation and amortization

23

28

Adjusted EBITDA attributable to noncontrolling interests

(60

)

(38

)

Midstream Adjusted EBITDA

$

885

938

Chemicals Income before income taxes

$

113

107

Plus:

None

—

Chemicals EBITDA

$

113

107

Special Item Adjustments (pre-tax):

Winter-storm-related costs (recovery)

—

(35

)

Chemicals EBITDA, Adjusted for Special Items

$

113

72

Other Adjustments (pre-tax):

Proportional share of selected equity affiliates income taxes

13

11

Proportional share of selected equity affiliates net interest

(1

)

—

Proportional share of selected equity affiliates depreciation and amortization

119

126

Chemicals Adjusted EBITDA

$

244

209

Refining Loss before income taxes

$

(937

)

(775

)

Plus:

Depreciation and amortization

456

435

Refining EBITDA

$

(481

)

(340

)

Special Item Adjustments (pre-tax):

Certain tax impacts

—

(9

)

Los Angeles Refinery cessation costs

—

3

Legal accrual

—

22

Refining EBITDA, Adjusted for Special Items

$

(481

)

(324

)

Other Adjustments (pre-tax):

Proportional share of selected equity affiliates income taxes

—

(1

)

Proportional share of selected equity affiliates net interest

2

—

Proportional share of selected equity affiliates depreciation and amortization

27

Refining Adjusted EBITDA

$

(452

)

(298

)

Marketing and Specialties Income before income taxes

$

1,282

252

Plus:

Depreciation and amortization

20

79

Marketing and Specialties EBITDA

$

1,302

331

Special Item Adjustments (pre-tax):

Net gain on asset disposition

(1,017

)

(67

)

Marketing and Specialties EBITDA, Adjusted for Special Items

$

285

264

Other Adjustments (pre-tax):

Proportional share of selected equity affiliates income taxes

2

4

Proportional share of selected equity affiliates net interest

10

11

Proportional share of selected equity affiliates depreciation and amortization

18

28

Marketing and Specialties Adjusted EBITDA

$

315

307

Renewable Fuels Income (loss) before income taxes

$

(185

)

28

Plus:

Depreciation and amortization

23

22

Renewable Fuels EBITDA

$

(162

)

50

Special Item Adjustments (pre-tax):

None

—

Renewable Fuels EBITDA, Adjusted for Special Items

$

(162

)

50

Corporate and Other Loss before income taxes

$

(376

)

(298

)

Plus:

Net interest expense

187

168

Depreciation and amortization

59

49

Corporate and Other EBITDA

$

(130

)

(81

)

Special Item Adjustments (pre-tax):

Impairments

21

—

Los Angeles Refinery cessation costs

—

4

Total Special Item Adjustments (pre-tax)

21

4

Change in Fair Value of NOVONIX Investment

15

1

Corporate EBITDA, Adjusted for Special Items and Change in Fair Value of NOVONIX Investment

$

(94

)

(76

)

Millions of Dollars
Except as Indicated

Mar. 31, 2025

Dec. 31, 2024

Debt-to-Capital Ratio

Total Debt

$

18,803

$

20,062

Total Equity

28,353

28,463

Debt-to-Capital Ratio

40

%

41

%

Total Cash

1,489

1,738

Net Debt-to-Capital Ratio

38

%

39

%

Millions of Dollars

Except as Indicated

2025

2024

1Q

4Q

Reconciliation of Refining Loss Before Income Taxes to Realized Refining Margins

Loss before income taxes

$

(937

)

(775

)

Plus:

Taxes other than income taxes

110

92

Depreciation, amortization and impairments

456

436

Selling, general and administrative expenses

46

60

Operating expenses

1,074

968

Equity in earnings of affiliates

105

79

Other segment expense, net

(5

)

58

Proportional share of refining gross margins contributed by equity affiliates

141

132

Special items:

Certain tax impacts

—

(9

)

Realized refining margins

$

990

1,041

Total processed inputs (thousands of barrels)

124,453

147,880

Adjusted total processed inputs (thousands of barrels)*

145,559

171,031

Loss before income taxes (dollars per barrel)**

$

(7.53

)

(5.24

)

Realized refining margins (dollars per barrel)***

$

6.81

6.08

*Adjusted total processed inputs include our proportional share of processed inputs of an equity affiliate.

**Income before income taxes divided by total processed inputs.

***Realized refining margins per barrel, as presented, are calculated using the underlying realized refining margin amounts, in dollars, divided by adjusted total processed inputs, in barrels. As such, recalculated per barrel amounts using the rounded margins and barrels presented may differ from the presented per barrel amounts.

Source: Phillips 66

MIL OSI Economics –

April 25, 2025

MIL-OSI: Lakeland Financial Reports a 12% Increase in Net Interest Income and Organic Loan Growth of 4%

Source: GlobeNewswire (MIL-OSI)

WARSAW, Ind., April 25, 2025 (GLOBE NEWSWIRE) — Lakeland Financial Corporation (Nasdaq Global Select/LKFN), parent company of Lake City Bank, today reported net income of $20.1 million for the three months ended March 31, 2025, which represents a decrease of $3.3 million, or 14%, compared with net income of $23.4 million for the three months ended March 31, 2024. Diluted earnings per share were $0.78 for the first quarter of 2025 and decreased $0.13, or 14%, compared to $0.91 for the first quarter of 2024. On a linked quarter basis, net income decreased $4.1 million, or 17%, to $24.2 million. Diluted earnings per share decreased $0.16, or 17%, from $0.94 on a linked quarter basis.

Pretax pre-provision earnings, which is a non-GAAP measure, were $31.0 million for the three months ended March 31, 2025, an increase of $1.7 million, or 6%, compared to $29.3 million for the three months ended March 31, 2024.

“Our first quarter results are highlighted by double digit growth in net interest income and strong net interest margin expansion,” stated David M. Findlay, Chairman and CEO. “Further, we continued to experience healthy loan growth that was funded with equally positive deposit growth. The Lake City Bank team delivered encouraging operating results in the quarter.”

Quarterly Financial Performance

First Quarter 2025 versus First Quarter 2024 highlights:

Tangible book value per share grew by $1.80, or 7%, to $26.85
Average loans grew by $214.9 million, or 4%, to $5.19 billion
Core deposits grew by $402.5 million, or 7%, to $5.83 billion
Net interest margin improved 25 basis points to 3.40% versus 3.15%
Net interest income increased by $5.5 million, or 12%
Revenue grew by 6% from $60.0 million to $63.8 million
Provision expense of $6.8 million, compared to $1.5 million
Watch list loans as a percentage of total loans increased to 4.13% from 3.67%
Pretax, pre-provision earnings increased by $1.7 million, or 6%
Common equity tier 1 capital improved to 14.51%, compared to 14.21%
Tangible capital ratio improved to 10.09%, compared to 9.80%
Average equity increased by $51.0 million, or 8%

First Quarter 2025 versus Fourth Quarter 2024 highlights:

Tangible book value per share grew by $0.38, or 1%, to $26.85
Average loans grew by $99.3 million, or 2%, to $5.19 billion
Net interest margin improved 15 basis points to 3.40% versus 3.25%
Net interest income increased by $1.2 million, or 2%
Provision expense of $6.8 million, compared to $3.7 million
Watch list loans as a percentage of total loans remained at 4.13%
Pretax, pre-provision earnings decreased $1.9 million, or 6%
Common equity tier 1 capital of 14.51%, compared to 14.64%
Tangible capital ratio of 10.09%, compared to 10.19%

Capital Strength

The company’s total capital as a percentage of risk-weighted assets improved to 15.77% at March 31, 2025, compared to 15.46% at March 31, 2024, and down from 15.90% at December 31, 2024. These capital levels significantly exceeded the 10.00% regulatory threshold required to be characterized as “well capitalized” and reflect the company’s robust capital base.

The company’s tangible common equity to tangible assets ratio, which is a non-GAAP financial measure, improved to 10.09% at March 31, 2025, compared to 9.80% at March 31, 2024, and down from 10.19% at December 31, 2024. Unrealized losses from available-for-sale investment securities were $188.3 million at March 31, 2025, compared to $189.9 million at March 31, 2024 and $191.1 million at December 31, 2024. Excluding the impact of accumulated other comprehensive income (loss) on tangible common equity and tangible assets, the company’s ratio of adjusted tangible common equity to adjusted tangible assets, a non-GAAP financial measure, improved to 12.19% at March 31, 2025, compared to 12.03% at March 31, 2024, and down from 12.37% at December 31, 2024.

As announced on April 8, 2025, the board of directors approved a cash dividend for the first quarter of $0.50 per share, payable on May 5, 2025, to shareholders of record as of April 25, 2025. The first quarter dividend per share represents a 4% increase from the $0.48 dividend per share paid for the first quarter of 2024.

The board of directors also reauthorized and extended the company’s share repurchase program through April 30, 2027 with remaining aggregate purchase price authority of $30.0 million. The company anticipates activating the share repurchase program during the second quarter of 2025.

Kristin L. Pruitt, President commented, “We believe that the recent stock price performance, driven by the impact of tariff activity, provides us with an opportunity to return capital to shareholders at attractive prices through our repurchase plan. Further, our strong capital levels continue to provide capacity for organic loan growth in our Indiana markets. Our capital position also supports our continued growth in the dividend paid to shareholders.”

Loan Portfolio

Average total loans of $5.19 billion in the first quarter of 2025 increased $214.9 million, or 4%, from $4.97 billion for the first quarter of 2024, and increased $99.3 million, or 2%, from $5.09 billion for the fourth quarter of 2024. Total loans, net of deferred loan fees, increased by $224.8 million, or 4%, from $5.00 billion as of March 31, 2024, to $5.23 billion as of March 31, 2025. The increase in loans occurred across much of the portfolio with our commercial real estate and multi-family residential loan portfolio growing by $143.4 million, or 6%, our commercial and industrial loan portfolio growing by $46.3 million, or 3%, our consumer 1-4 family mortgage loans portfolio growing by $39.7 million, or 9%, and our agri-business and agricultural loan portfolio growing by $15.9 million, or 4%. These increases were offset by a decrease to other commercial loans of $25.4 million, or 21%. On a linked quarter basis, total loans, net of deferred loan fees, increased by $104.9 million, or 2%, from $5.12 billion at December 31, 2024. The linked quarter increase was primarily a result of growth in total commercial and industrial loans of $72.7 million, or 5%, growth in total commercial real estate and multi-family residential loans of $28.3 million, or 1%, and growth in our consumer 1-4 family mortgage loans portfolio of $10.0 million, or 2%.

Commercial loan originations for the first quarter included approximately $365.0 million in loan originations, offset by approximately $268.0 million in commercial loan pay downs. Line of credit usage increased to 43% as of March 31, 2025, compared to 39% at March 31, 2024 and 41% as of December 31, 2024. Total available lines of credit contracted by $153.0 million, or 3%, as compared to a year ago, and line usage increased by $122.0 million, or 7%, over that period. The company has limited exposure to commercial office space borrowers, all of which are in the bank’s Indiana markets. Loans totaling $100.6 million for this sector represented 2% of total loans at March 31, 2025, a decrease of $1.1 million, or 1%, from December 31, 2024. Commercial real estate loans secured by multi-family residential properties and secured by non-farm non-residential properties were approximately 214% of total risk-based capital at March 31, 2025.

“We are encouraged by the continued organic loan growth during the quarter. In particular, we are pleased to see the upward trend in commercial line utilization, which reached 43% in the first quarter compared to 39% a year ago. Commercial and Industrial loan growth was a highlight this quarter and positively impacted our commercial line utilization,” added Findlay. “Linked quarter loan growth was largely driven by expansion in working capital lines of credit loans and construction and land development loans.”

Diversified Deposit Base

The bank’s diversified deposit base has grown on a year over year basis and on a linked quarter basis.

DEPOSIT DETAIL (unaudited, in thousands)

	March 31, 2025				December 31, 2024				March 31, 2024
Retail	$	1,787,992	30.0	%	$	1,780,726	30.2	%	$	1,770,007	31.5	%
Commercial		2,336,910	39.2			2,269,049	38.4			2,117,536	37.7
Public funds		1,709,883	28.7			1,809,631	30.7			1,544,775	27.5
Core deposits		5,834,785	97.9			5,859,406	99.3			5,432,318	96.7
Brokered deposits		125,409	2.1			41,560	0.7			185,767	3.3
Total	$	5,960,194	100.0	%	$	5,900,966	100.0	%	$	5,618,085	100.0	%

Total deposits increased $342.1 million, or 6%, from $5.62 billion as of March 31, 2024, to $5.96 billion as of March 31, 2025. The increase in total deposits was driven by an increase in core deposits (which excludes brokered deposits) of $402.5 million, or 7%. Total core deposits at March 31, 2025 were $5.83 billion and represented 98% of total deposits, as compared to $5.43 billion and 97% of total deposits at March 31, 2024. Brokered deposits were $125.4 million, or 2% of total deposits, at March 31, 2025, compared to $185.8 million, or 3% of total deposits, at March 31, 2024.

The increase in core deposits since March 31, 2024, reflects growth in all three core deposit components. Commercial deposits grew annually by $219.4 million, or 10%, to $2.34 billion. Commercial deposits as a percentage of total deposits expanded to 39%, up from 38%. Public funds deposits grew annually by $165.1 million, or 11%, to $1.71 billion. Public funds deposits as a percentage of total deposits was 29%, up from 28%. Growth in public funds was positively impacted by the addition of new public funds customers in the Lake City Bank footprint, including their operating accounts. Retail deposits expanded by $18.0 million, or 1%, to $1.79 billion. Retail deposits as a percentage of total deposits was 30% of total deposits, down from 32%.

On a linked quarter basis, total deposits increased $59.2 million, or 1%, from $5.90 billion at December 31, 2024, to $5.96 billion at March 31, 2025. Core deposits decreased by $24.6 million, or less than 1%, while brokered deposits increased by $83.8 million, or 202%. The linked quarter reduction in core deposits resulted primarily from a seasonal decrease in public funds deposits of $99.7 million, or 6%. Offsetting this increase was an increase in commercial deposits of $67.9 million, or 3%, and an increase in retail deposits of $7.3 million, or less than 1%.

“Annual core deposit growth of 7% continues to provide liquidity to fund loan growth. We continue to see opportunities to gain market share in our Indiana footprint,” noted Lisa M. O’Neill, Executive Vice President and Chief Financial Officer. “Our diversified funding base is stable, and average checking account balances continue to maintain liquidity in excess of pre-pandemic levels.”

Average total deposits were $5.87 billion for the first quarter of 2025, an increase of $244.3 million, or 4%, from $5.63 billion for the first quarter of 2024. Average interest-bearing deposits drove the increase in average total deposits and increased by $260.1 million, or 6%. Contributing to the overall growth of interest-bearing deposits was an increase to average interest-bearing checking accounts of $439.5 million, or 14%. Offsetting this increase was a reduction in average time deposits of $167.7 million, or 17%, and a decrease to average savings deposits of $11.8 million, or 4%. Average noninterest-bearing demand deposits decreased by $15.8 million, or 1%.

On a linked quarter basis, average total deposits decreased by $136.4 million, or 2%, from $6.01 billion for the fourth quarter of 2024 to $5.87 billion for the first quarter of 2025. Average interest bearing deposits drove the decrease to total average deposits, which decreased by $112.8 million, or 2%. Driving the decrease to average interest bearing deposits were decreases to total average time deposits of $102.7 million, or 11%, and interest bearing checking accounts of $19.0 million, or 1%. Average noninterest bearing demand deposits decreased by $23.6 million, or 2%.

Checking account trends as of March 31, 2025 compared to March 31, 2024, include growth of $222.5 million, or 17%, in aggregate public fund checking account balances, growth of $212.3 million, or 11%, in aggregate commercial checking account balances, and growth of $35.5 million, or 4%, in aggregate retail checking account balances. The number of accounts has also grown for all three segments, with growth of 7% for public funds accounts, 2% for commercial accounts and 1% for retail accounts during the prior twelve months.

Deposits not covered by FDIC deposit insurance as a percentage of total deposits were 57% as of March 31, 2025, compared to 62% at December 31, 2024, and 54% at March 31, 2024, reflecting changes in core deposits and growth in public fund deposits over those periods. Deposits not covered by FDIC deposit insurance or the Indiana Public Deposit Insurance Fund (which insures public funds deposits in Indiana), were 29% of total deposits at March 31, 2025, compared to 32% at December 31, 2024, and 27% at March 31, 2024. At March 31, 2025, 98% of deposit accounts had deposit balances less than $250,000.

Net Interest Margin

Net interest margin was 3.40% for the first quarter of 2025, representing a 25 basis point increase from 3.15% for the first quarter of 2024. This improvement was driven by a reduction in the company’s funding costs, with interest expense as a percentage of average earning assets falling by 45 basis points from 2.82% for the first quarter of 2024 to 2.37% for the first quarter of 2025. Offsetting the decrease in funding costs was a decrease to earning asset yields of 20 basis points from 5.97% for the first quarter of 2024 to 5.77% for the first quarter of 2025.

Linked quarter net interest margin expanded by 15 basis points to 3.40% for the first quarter of 2025, compared to 3.25% for the fourth quarter of 2024. Interest expense as a percentage of average earning assets decreased 19 basis points from 2.56% to 2.37% on a linked quarter basis. Average earning asset yields decreased by 4 basis points from 5.81% to 5.77% on a linked quarter basis. The easing of monetary policy by the Federal Reserve Bank, which began in September of 2024, drove the reduction in funding costs that provided for the net interest margin expansion through deposit repricing. Notably, the deposit mix shift from noninterest bearing deposits to interest bearing deposits experienced by the company during the previous monetary tightening cycle has stabilized with noninterest bearing deposits representing 22% of total deposits at March 31, 2025, March 31, 2024 and December 31, 2024.

“We continue to see improvements in net interest margin due to the Federal Reserve Bank’s rate easing cycle. Our deposit costs have declined more than loan yields resulting in year over year improvements in net interest margin of 25 basis points and linked quarter improvements of 15 basis points,” stated O’Neill. “Net interest margin expansion combined with healthy loan growth has contributed to double digit growth in net interest income.”

The loan beta for the current rate-easing cycle is 37% compared to the deposit beta of 55%. The cumulative loan beta, which measures the sensitivity of a bank’s average loan yield to changes in short-term interest rates, was 56% for the recent rate-tightening cycle. The cumulative deposit beta, which measures the sensitivity of a bank’s deposit cost to changes in short-term interest rates, was 54% for the recent rate-tightening cycle.

Net interest income was $52.9 million for the first quarter of 2025, representing an increase of $5.5 million, or 12%, as compared to the first quarter of 2024. Net interest income for the first quarter of 2025 benefited from a decrease in deposit interest expense of $4.7 million and a decrease in borrowings interest expense of $1.3 million. Offsetting these effects on net interest income was a decrease in loan interest of $910,000. On a linked quarter basis, net interest income increased $1.2 million, or 2%, from $51.7 million for the fourth quarter of 2024. On a linked quarter basis, the increase to net interest income was driven by a reduction in interest expense of $4.1 million and offset by a reduction in interest income of $2.9 million.

Asset Quality

The company recorded a provision for credit losses of $6.8 million in the first quarter of 2025, an increase of $5.3 million, as compared to $1.5 million in the first quarter of 2024. On a linked quarter basis, the provision expense increased by $3.1 million, from $3.7 million for the fourth quarter of 2024. Provision expense during the first quarter of 2025 was primarily attributable to an increase in the specific allocation for the previously disclosed $43.3 million nonperforming credit to an industrial company in Northern Indiana.

The allowance for credit loss reserve to total loans was 1.77% at March 31, 2025, up from 1.46% at March 31, 2024, and 1.68% at December 31, 2024. Net charge offs in the first quarter of 2025 were $327,000 compared to $312,000 in the first quarter of 2024 and $1.4 million during the linked fourth quarter of 2024. Annualized net charge offs to average loans were 0.03% for the first quarter of 2025, compared to 0.03% for the first quarter of 2024, and 0.11% for the linked fourth quarter of 2024.

Nonperforming assets increased $42.6 million, or 280%, to $57.9 million as of March 31, 2025, versus $15.2 million as of March 31, 2024. On a linked quarter basis, nonperforming assets increased $1.0 million, or 2%, compared to $56.9 million as of December 31, 2024. The ratio of nonperforming assets to total assets at March 31, 2025 increased to 0.84% from 0.23% at March 31, 2024, and decreased from 0.85% at December 31, 2024. The increase in nonperforming assets was primarily driven by the aforementioned credit.

Total individually analyzed and watch list loans increased by $32.3 million, or 18%, to $215.6 million as of March 31, 2025, versus $183.3 million as of March 31, 2024. On a linked quarter basis, total individually analyzed and watch list loans increased by $4.4 million, or 2%, from $211.1 million at December 31, 2024. The linked quarter increase in total individually analyzed and watch list loans was primarily driven by the addition of five commercial relationships to the watch list with aggregate balances of $11.5 million and offset by watch list removals of two relationships with aggregate balances of $8.0 million. Watch list loans as a percentage of total loans were 4.13% at March 31, 2025, an increase of 46 basis points compared to 3.67% at March 31, 2024, and unchanged from December 31, 2024.

“Asset quality remains stable with watch list loans as a percentage of total loans at 4.13%,” commented Findlay. “It is premature to comment on the impact of the tariff activity on our borrowers’ businesses and we are actively talking with our clients to understand the impact of this trade policy activity. As part of our internal credit administration and loan review process, we initiated a detailed plan to identify and analyze specific industries and clients that may be more sensitive to the effects of tariffs. As part of this process, our credit team is aggregating and segmenting direct and indirect exposure that our commercial and industrial borrowers have with international trading partners.”

Investment Portfolio Overview

Total investment securities were $1.13 billion at March 31, 2025, reflecting a decrease of $12.0 million, or 1%, as compared to $1.14 billion at March 31, 2024. On a linked quarter basis, investment securities increased $9.9 million, or 1%, due primarily to security purchases of $22.2 million, offset by improvement in the fair market value of available-for-sale securities of $2.8 million, and cash flows from calls, paydowns and maturities of $14.7 million. Investment securities represented 17% of total assets on March 31, 2025, March 31, 2024 and December 31, 2024. The company anticipates receiving principal and interest cash flows of approximately $82.3 million during the remainder of 2025 from the investment securities portfolio and plans to use that liquidity to fund loan growth and reinvestment of investment securities cash flows. Tax equivalent adjusted effective duration for the investment portfolio was 5.9 years at March 31, 2025, compared to 6.6 years at March 31, 2024 and 6.0 years December 31, 2024.

Noninterest Income

The company’s noninterest income decreased $1.7 million, or 13%, to $10.9 million for the first quarter of 2025, compared to $12.6 million for the first quarter of 2024. Adjusted core noninterest income, a non-GAAP financial measure that excludes the effect of the insurance recovery recorded during the first quarter of 2024, was $11.6 million for the first quarter of 2024, a decrease of $684,000, or 6%, compared to $10.9 million for the first quarter of 2025. Wealth advisory fees increased $412,000, or 17%, driven by growth in customers and assets under management. Deposit fees increased $83,000, or 3% driven primarily by growth in our treasury management services. Other income decreased $1.3 million, or 61%. Other income during the first quarter of 2024 benefited from a $1.0 million insurance recovery related to the wire fraud loss from 2023 and death benefits received from the company’s bank owned life insurance program. Bank owned life insurance income decreased $714,000, or 69%, primarily due to a reduction in the market performance of the company’s variable bank owned life insurance policies, which are tied to the equity markets.

Noninterest income for the first quarter of 2025 decreased by $948,000, or 8%, on a linked quarter basis from $11.9 million during the fourth quarter of 2024. Wealth advisory fees increased by $168,000, or 6%. The linked quarter decrease in noninterest income was impacted by a decrease in bank owned life insurance income, which decreased $894,000, or 74%, due to market performance of the company’s variable bank owned life insurance policies.

“The growth of our wealth advisory business continues to positively impact revenue growth with 17% improvement in fees on a year over year basis,” added Findlay, “We continue to focus on our fee-based businesses that contribute to noninterest income and revenue growth.”

Noninterest Expense

Noninterest expense increased $2.1 million, or 7%, to $32.8 million for the first quarter of 2025, compared to $30.7 million during the first quarter of 2024. Salaries and benefits expense increased by $1.1 million, or 6%, driven by performance-based incentive compensation expense of $1.3 million and salary expense of $524,000. These increases were offset by reduced deferred compensation expense of $687,000, which moves in tandem with the market performance of the company’s variable bank owned life insurance. Other expense increased by $400,000, or 18%, from increased customer reimbursements for counterfeit checks and account takeover wire fraud losses. Data processing fees and supplies expense increased $426,000, or 11%, from continued investment in customer-facing and operational technology solutions.

On a linked quarter basis, noninterest expense increased by $2.1 million, or 7%, from $30.7 million during the fourth quarter of 2024. Salaries and employee benefits increased by $641,000, or 4%, due to merit-based increases for salaries, incentive pay, and annual health insurance benefits that are funded at the beginning of each year. Data processing fees and supplies expense increased $523,000, or 14%. Corporate and business development expense increased by $456,000, or 48%, which was primarily driven by an increase in advertising expense of $462,000 during the quarter from the company’s seasonal promotional campaigns. Other expense increased $228,000, or 9%.

The company’s efficiency ratio was 51.4% for the first quarter of 2025, compared to 51.2% for the first quarter of 2024 and 48.2% for the linked fourth quarter of 2024.

Information regarding Lakeland Financial Corporation may be accessed on the home page of its subsidiary, Lake City Bank, at lakecitybank.com. The company’s common stock is traded on the Nasdaq Global Select Market under “LKFN.” Lake City Bank, a $6.9 billion bank headquartered in Warsaw, Indiana, was founded in 1872 and serves Central and Northern Indiana communities with 54 branch offices and a robust digital banking platform. Lake City Bank’s community banking model prioritizes building in-market long-term customer relationships while delivering technology-forward solutions for retail and commercial clients.

This document contains, and future oral and written statements of the company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “continue,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should” or other similar expressions. The company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain and, accordingly, the reader is cautioned not to place undue reliance on any forward-looking statements made by the company. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the company undertakes no obligation to update any statement in light of new information or future events. Numerous factors could cause the company’s actual results to differ from those reflected in forward-looking statements, including the effects of economic, business and market conditions and changes, particularly in our Indiana market area, including prevailing interest rates and the rate of inflation; governmental trade, monetary and fiscal policies; the risks of changes in interest rates on the levels, composition and costs of deposits, loan demand and the values and liquidity of loan collateral, securities and other interest sensitive assets and liabilities; and changes in borrowers’ credit risks and payment behaviors, as well as those identified in the company’s filings with the Securities and Exchange Commission, including the company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

LAKELAND FINANCIAL CORPORATION FIRSTQUARTER2025FINANCIAL HIGHLIGHTS

	Three Months Ended
(Unaudited – Dollars in thousands, except per share data)	March 31,			December 31,			March 31,
END OF PERIOD BALANCES		2025			2024			2024
Assets	$	6,851,178		$	6,678,374		$	6,566,861
Investments		1,132,854			1,122,994			1,144,816
Loans		5,223,221			5,117,948			4,997,559
Allowance for Credit Losses		92,433			85,960			73,180
Deposits		5,960,194			5,900,966			5,618,085
Brokered Deposits		125,409			41,560			185,767
Core Deposits (1)		5,834,785			5,859,406			5,432,318
Total Equity		694,509			683,911			647,009
Goodwill Net of Deferred Tax Assets		3,803			3,803			3,803
Tangible Common Equity (2)		690,706			680,108			643,206
Adjusted Tangible Common Equity (2)		854,585			846,040			809,395
AVERAGE BALANCES
Total Assets	$	6,762,970		$	6,795,596		$	6,554,468
Earning Assets		6,430,804			6,470,920			6,216,929
Investments		1,136,404			1,134,011			1,158,503
Loans		5,185,918			5,086,614			4,971,020
Total Deposits		5,874,725			6,011,122			5,630,431
Interest Bearing Deposits		4,616,381			4,729,201			4,356,328
Interest Bearing Liabilities		4,716,465			4,729,206			4,532,137
Total Equity		696,053			693,744			645,007
INCOME STATEMENT DATA
Net Interest Income	$	52,875		$	51,694		$	47,416
Net Interest Income-Fully Tax Equivalent		53,983			52,804			48,683
Provision for Credit Losses		6,800			3,691			1,520
Noninterest Income		10,928			11,876			12,612
Noninterest Expense		32,763			30,653			30,705
Net Income		20,085			24,190			23,401
Pretax Pre-Provision Earnings (2)		31,040			32,917			29,323
PER SHARE DATA
Basic Net Income Per Common Share	$	0.78		$	0.94		$	0.91
Diluted Net Income Per Common Share		0.78			0.94			0.91
Cash Dividends Declared Per Common Share		0.50			0.48			0.48
Dividend Payout		64.10	%		51.06	%		52.75	%
Book Value Per Common Share (equity per share issued)	$	26.99		$	26.62		$	25.20
Tangible Book Value Per Common Share (2)		26.85			26.47			25.05
Market Value – High	$	71.77		$	78.61		$	73.22
Market Value – Low		58.24			61.10			60.56
Basic Weighted Average Common Shares Outstanding		25,714,818			25,686,276			25,657,063
Diluted Weighted Average Common Shares Outstanding		25,802,865			25,792,460			25,747,643


	Three Months Ended
(Unaudited – Dollars in thousands, except per share data)	March 31,			December 31,			March 31,
KEY RATIOS		2025			2024			2024
Return on Average Assets		1.20	%		1.42	%		1.44	%
Return on Average Total Equity		11.70			13.87			14.59
Average Equity to Average Assets		10.29			10.21			9.84
Net Interest Margin		3.40			3.25			3.15
Efficiency (Noninterest Expense/Net Interest Income plus Noninterest Income)		51.35			48.22			51.15
Loans to Deposits		87.64			86.73			88.95
Investment Securities to Total Assets		16.54			16.82			17.43
Tier 1 Leverage (3)		12.30			12.15			12.01
Tier 1 Risk-Based Capital (3)		14.51			14.64			14.21
Common Equity Tier 1 (CET1) (3)		14.51			14.64			14.21
Total Capital (3)		15.77			15.90			15.46
Tangible Capital (2)		10.09			10.19			9.80
Adjusted Tangible Capital (2)		12.19			12.37			12.03
ASSET QUALITY
Loans Past Due 30 – 89 Days	$	4,288		$	4,273		$	3,177
Loans Past Due 90 Days or More		7			28			7
Nonaccrual Loans		57,392			56,431			14,762
Nonperforming Loans		57,399			56,459			14,769
Other Real Estate Owned		284			284			384
Other Nonperforming Assets		193			143			78
Total Nonperforming Assets		57,876			56,886			15,231
Individually Analyzed Loans		81,346			78,647			15,181
Non-Individually Analyzed Watch List Loans		134,218			132,499			168,133
Total Individually Analyzed and Watch List Loans		215,564			211,146			183,314
Gross Charge Offs		508			1,657			504
Recoveries		181			299			192
Net Charge Offs/(Recoveries)		327			1,358			312
Net Charge Offs/(Recoveries) to Average Loans		0.03	%		0.11	%		0.03	%
Credit Loss Reserve to Loans		1.77			1.68			1.46
Credit Loss Reserve to Nonperforming Loans		161.04			152.25			495.51
Nonperforming Loans to Loans		1.10			1.10			0.30
Nonperforming Assets to Assets		0.84			0.85			0.23
Total Individually Analyzed and Watch List Loans to Total Loans		4.13	%		4.13	%		3.67	%
OTHER DATA
Full Time Equivalent Employees		647			643			628
Offices		54			54			53

__________________________________________________

(1)		Core deposits equals deposits less brokered deposits.
(2)		Non-GAAP financial measure – see “Reconciliation of Non-GAAP Financial Measures”.
(3)		Capital ratios for March 31, 2025 are preliminary until the Call Report is filed.

CONSOLIDATED BALANCE SHEETS (in thousands, except share data)
	March 31, 2025			December 31, 2024
	(Unaudited)
ASSETS
Cash and due from banks	$	89,325		$	71,733
Short-term investments		145,899			96,472
Total cash and cash equivalents		235,224			168,205

Securities available-for-sale, at fair value		1,000,875			991,426
Securities held-to-maturity, at amortized cost (fair value of $109,481 and $113,107, respectively)		131,979			131,568
Real estate mortgage loans held-for-sale		1,295			1,700

Loans, net of allowance for credit losses of $92,433 and $85,960		5,130,788			5,031,988

Land, premises and equipment, net		60,797			60,489
Bank owned life insurance		113,826			113,320
Federal Reserve and Federal Home Loan Bank stock		21,420			21,420
Accrued interest receivable		28,818			28,446
Goodwill		4,970			4,970
Other assets		121,186			124,842
Total assets	$	6,851,178		$	6,678,374


LIABILITIES
Noninterest bearing deposits	$	1,296,907		$	1,297,456
Interest bearing deposits		4,663,287			4,603,510
Total deposits		5,960,194			5,900,966

Borrowings – Federal Home Loan Bank advances		108,200			0
Accrued interest payable		14,699			15,117
Other liabilities		73,576			78,380
Total liabilities		6,156,669			5,994,463

STOCKHOLDERS’ EQUITY
Common stock: 90,000,000 shares authorized, no par value
26,016,494 shares issued and 25,556,904 outstanding as of March 31, 2025
25,978,831 shares issued and 25,509,592 outstanding as of December 31, 2024		130,243			129,664
Retained earnings		743,650			736,412
Accumulated other comprehensive income (loss)		(163,879	)		(166,500	)
Treasury stock, at cost (459,590 shares and 469,239 shares as of March 31, 2025 and December 31, 2024, respectively)		(15,594	)		(15,754	)
Total stockholders’ equity		694,420			683,822
Noncontrolling interest		89			89
Total equity		694,509			683,911
Total liabilities and equity	$	6,851,178		$	6,678,374

CONSOLIDATED STATEMENTS OF INCOME (unaudited – in thousands, except share and per share data)
	Three Months Ended March 31,
		2025			2024
NET INTEREST INCOME
Interest and fees on loans
Taxable	$	81,740		$	82,042
Tax exempt		292			900
Interest and dividends on securities
Taxable		3,389			3,039
Tax exempt		3,910			3,947
Other interest income		1,124			1,106
Total interest income		90,455			91,034

Interest on deposits		36,458			41,164
Interest on short-term borrowings		1,122			2,454
Total interest expense		37,580			43,618

NET INTEREST INCOME		52,875			47,416

Provision for credit losses		6,800			1,520

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		46,075			45,896

NONINTEREST INCOME
Wealth advisory fees		2,867			2,455
Investment brokerage fees		452			522
Service charges on deposit accounts		2,774			2,691
Loan and service fees		2,884			2,852
Merchant and interchange fee income		822			863
Bank owned life insurance income		322			1,036
Mortgage banking income (loss)		(51	)		52
Net securities gains (losses)		0			(46	)
Other income		858			2,187
Total noninterest income		10,928			12,612

NONINTEREST EXPENSE
Salaries and employee benefits		17,902			16,833
Net occupancy expense		1,980			1,740
Equipment costs		1,382			1,412
Data processing fees and supplies		4,265			3,839
Corporate and business development		1,406			1,381
FDIC insurance and other regulatory fees		800			789
Professional fees		2,380			2,463
Other expense		2,648			2,248
Total noninterest expense		32,763			30,705

INCOME BEFORE INCOME TAX EXPENSE		24,240			27,803
Income tax expense		4,155			4,402
NET INCOME	$	20,085		$	23,401

BASIC WEIGHTED AVERAGE COMMON SHARES		25,714,818			25,657,063

BASIC EARNINGS PER COMMON SHARE	$	0.78		$	0.91

DILUTED WEIGHTED AVERAGE COMMON SHARES		25,802,865			25,747,643

DILUTED EARNINGS PER COMMON SHARE	$	0.78		$	0.91

LAKELAND FINANCIAL CORPORATION LOAN DETAIL (unaudited, in thousands)

	March 31, 2025					December 31, 2024					March 31, 2024
Commercial and industrial loans:
Working capital lines of credit loans	$	716,522		13.7	%	$	649,609		12.7	%	$	646,459		12.9	%
Non-working capital loans		807,048		15.5			801,256		15.6			830,817		16.6
Total commercial and industrial loans		1,523,570		29.2			1,450,865		28.3			1,477,276		29.5

Commercial real estate and multi-family residential loans:
Construction and land development loans		623,905		12.0			567,781		11.1			659,712		13.2
Owner occupied loans		804,933		15.4			807,090		15.8			833,410		16.7
Nonowner occupied loans		852,033		16.3			872,671		17.0			744,346		14.9
Multifamily loans		339,946		6.5			344,978		6.7			239,974		4.8
Total commercial real estate and multi-family residential loans		2,620,817		50.2			2,592,520		50.6			2,477,442		49.6

Agri-business and agricultural loans:
Loans secured by farmland		156,112		3.0			156,609		3.1			167,271		3.3
Loans for agricultural production		227,659		4.3			230,787		4.5			200,581		4.0
Total agri-business and agricultural loans		383,771		7.3			387,396		7.6			367,852		7.3

Other commercial loans		94,927		1.8			95,584		1.9			120,302		2.4
Total commercial loans		4,623,085		88.5			4,526,365		88.4			4,442,872		88.8

Consumer 1-4 family mortgage loans:
Closed end first mortgage loans		265,855		5.1			259,286		5.1			260,633		5.2
Open end and junior lien loans		217,981		4.2			214,125		4.2			188,927		3.8
Residential construction and land development loans		16,359		0.3			16,818		0.3			10,956		0.2
Total consumer 1-4 family mortgage loans		500,195		9.6			490,229		9.6			460,516		9.2

Other consumer loans		102,254		1.9			104,041		2.0			97,369		2.0
Total consumer loans		602,449		11.5			594,270		11.6			557,885		11.2
Subtotal		5,225,534		100.0	%		5,120,635		100.0	%		5,000,757		100.0	%
Less: Allowance for credit losses		(92,433	)				(85,960	)				(73,180	)
Net deferred loan fees		(2,313	)				(2,687	)				(3,198	)
Loans, net	$	5,130,788				$	5,031,988				$	4,924,379

LAKELAND FINANCIAL CORPORATION DEPOSITS AND BORROWINGS (unaudited, in thousands)

	March 31, 2025		December 31, 2024		March 31, 2024
Noninterest bearing demand deposits	$	1,296,907	$	1,297,456	$	1,254,200
Savings and transaction accounts:
Savings deposits		293,768		276,179		296,671
Interest bearing demand deposits		3,554,310		3,471,455		3,041,025
Time deposits:
Deposits of $100,000 or more		602,577		642,776		805,832
Other time deposits		212,632		213,100		220,357
Total deposits	$	5,960,194	$	5,900,966	$	5,618,085
FHLB advances and other borrowings		108,200		0		200,000
Total funding sources	$	6,068,394	$	5,900,966	$	5,818,085

LAKELAND FINANCIAL CORPORATION AVERAGE BALANCE SHEET AND NET INTEREST ANALYSIS (UNAUDITED)

	Three Months Ended March 31, 2025							Three Months Ended December 31, 2024							Three Months Ended March 31, 2024
(fully tax equivalent basis, dollars in thousands)	Average Balance			Interest Income		Yield (1)/ Rate		Average Balance			Interest Income		Yield (1)/ Rate		Average Balance			Interest Income		Yield (1)/ Rate
Earning Assets
Loans:
Taxable (2)(3)	$	5,160,031		$	81,740	6.42	%	$	5,060,397		$	83,253	6.54	%	$	4,916,943		$	82,042	6.71	%
Tax exempt (1)		25,887			361	5.66			26,217			364	5.52			54,077			1,118	8.31
Investments: (1)
Securities		1,136,404			8,338	2.98			1,134,011			7,953	2.79			1,158,503			8,035	2.79
Short-term investments		2,964			28	3.83			2,765			29	4.17			2,710			33	4.90
Interest bearing deposits		105,518			1,096	4.21			247,530			2,881	4.63			84,696			1,073	5.10
Total earning assets	$	6,430,804		$	91,563	5.77	%	$	6,470,920		$	94,480	5.81	%	$	6,216,929		$	92,301	5.97	%
Less: Allowance for credit losses		(87,477	)						(84,687	)						(72,433	)
Nonearning Assets
Cash and due from banks		71,004							67,994							68,584
Premises and equipment		60,523							60,325							57,883
Other nonearning assets		288,116							281,044							283,505
Total assets	$	6,762,970						$	6,795,596						$	6,554,468

Interest Bearing Liabilities
Savings deposits	$	283,888		$	42	0.06	%	$	274,960		$	43	0.06	%	$	295,650		$	49	0.07	%
Interest bearing checking accounts		3,486,447			28,075	3.27			3,505,470			31,562	3.58			3,046,958			30,365	4.01
Time deposits:
In denominations under $100,000		212,934			1,832	3.49			214,429			1,921	3.56			224,139			1,918	3.44
In denominations over $100,000		633,112			6,509	4.17			734,342			8,150	4.42			789,581			8,832	4.50
Miscellaneous short-term borrowings		99,830			1,122	4.56			5			0	5.30			175,809			2,454	5.61
Long-term borrowings		254			0	0.00			0			0	0.00			0			0	0.00
Total interest bearing liabilities	$	4,716,465		$	37,580	3.23	%	$	4,729,206		$	41,676	3.51	%	$	4,532,137		$	43,618	3.87	%
Noninterest Bearing Liabilities
Demand deposits		1,258,344							1,281,921							1,274,103
Other liabilities		92,108							90,725							103,221
Stockholders’ Equity		696,053							693,744							645,007
Total liabilities and stockholders’ equity	$	6,762,970						$	6,795,596						$	6,554,468
Interest Margin Recap
Interest income/average earning assets					91,563	5.77	%					94,480	5.81	%					92,301	5.97	%
Interest expense/average earning assets					37,580	2.37						41,676	2.56						43,618	2.82
Net interest income and margin				$	53,983	3.40	%				$	52,804	3.25	%				$	48,683	3.15	%

(1)		Tax exempt income was converted to a fully taxable equivalent basis at a 21 percent tax rate. The tax equivalent rate for tax exempt loans and tax-exempt securities acquired after January 1, 1983, included the Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) adjustment applicable to nondeductible interest expenses. Taxable equivalent basis adjustments were $1.11 million, $1.11 million and $1.27 million in the three-month periods ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.
(2)		Loan fees, which are immaterial in relation to total taxable loan interest income for the three-month periods ended March 31, 2025, December 31, 2024, and March 31, 2024, are included as taxable loan interest income.
(3)		Nonaccrual loans are included in the average balance of taxable loans.

Reconciliation of Non-GAAP Financial Measures

Tangible common equity, adjusted tangible common equity, tangible assets, adjusted tangible assets, tangible book value per common share, tangible common equity to tangible assets, adjusted tangible common equity to adjusted tangible assets, and pretax pre-provision earnings are non-GAAP financial measures calculated based on GAAP amounts. Tangible common equity is calculated by excluding the balance of goodwill and other intangible assets from the calculation of equity, net of deferred tax. Tangible assets are calculated by excluding the balance of goodwill and other intangible assets from the calculation of total assets, net of deferred tax. Adjusted tangible assets and adjusted tangible common equity remove the fair market value adjustment impact of the available-for-sale investment securities portfolio in accumulated other comprehensive income (loss) (“AOCI”). Tangible book value per common share is calculated by dividing tangible common equity by the number of shares outstanding less true treasury stock. Pretax pre-provision earnings is calculated by adding net interest income to noninterest income and subtracting noninterest expense. Because not all companies use the same calculation of tangible common equity and tangible assets, this presentation may not be comparable to other similarly titled measures calculated by other companies. However, management considers these measures of the company’s value meaningful to understanding of the company’s financial information and performance.

A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

	Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Mar. 31, 2024
Total Equity	$	694,509		$	683,911		$	647,009
Less: Goodwill		(4,970	)		(4,970	)		(4,970	)
Plus: DTA Related to Goodwill		1,167			1,167			1,167
Tangible Common Equity		690,706			680,108			643,206
Market Value Adjustment in AOCI		163,879			165,932			166,189
Adjusted Tangible Common Equity		854,585			846,040			809,395

Assets	$	6,851,178		$	6,678,374		$	6,566,861
Less: Goodwill		(4,970	)		(4,970	)		(4,970	)
Plus: DTA Related to Goodwill		1,167			1,167			1,167
Tangible Assets		6,847,375			6,674,571			6,563,058
Market Value Adjustment in AOCI		163,879			165,932			166,189
Adjusted Tangible Assets		7,011,254			6,840,503			6,729,247

Ending Common Shares Issued		25,727,393			25,689,730			25,677,399

Tangible Book Value Per Common Share	$	26.85		$	26.47		$	25.05

Tangible Common Equity/Tangible Assets		10.09	%		10.19	%		9.80	%
Adjusted Tangible Common Equity/Adjusted Tangible Assets		12.19	%		12.37	%		12.03	%

Net Interest Income	$	52,875		$	51,694		$	47,416
Plus: Noninterest Income		10,928			11,876			12,612
Minus: Noninterest Expense		(32,763	)		(30,653	)		(30,705	)

Pretax Pre-Provision Earnings	$	31,040		$	32,917		$	29,323

Adjusted core noninterest income, adjusted earnings before income taxes, core operational profitability, core operational diluted earnings per common share and adjusted core efficiency ratio are non-GAAP financial measures calculated based on GAAP amounts. These adjusted amounts are calculated by excluding the impact of insurance recoveries related to the 2023 wire fraud loss for the periods presented below. Management considers these measures of financial performance to be meaningful to understanding the company’s core business performance for these periods.

A reconciliation of these non-GAAP financial measures is provided below (dollars in thousands, except per share data).

	Three Months Ended
	Mar. 31, 2025			Dec. 31, 2024			Mar. 31, 2024
Noninterest Income	$	10,928		$	11,876		$	12,612
Less: Insurance Recovery		0			0			(1,000	)
Adjusted Core Noninterest Income	$	10,928		$	11,876		$	11,612

Earnings Before Income Taxes	$	24,240		$	29,226		$	27,803
Adjusted Core Impact:
Noninterest Income		0			0			(1,000	)
Total Adjusted Core Impact		0			0			(1,000	)
Adjusted Earnings Before Income Taxes		24,240			29,226			26,803
Tax Effect		(4,155	)		(5,036	)		(4,153	)
Core Operational Profitability (1)	$	20,085		$	24,190		$	22,650

Diluted Earnings Per Common Share	$	0.78		$	0.94		$	0.91
Impact of Adjusted Core Items		0.00			0.00			(0.03	)
Core Operational Diluted Earnings Per Common Share	$	0.78		$	0.94		$	0.88

Adjusted Core Efficiency Ratio		51.35	%		48.22	%		52.02	%

(1)

Core operational profitability was $751,000 lower than reported net income for the three months ended March 31, 2024.

Contact
Lisa M. O’Neill
Executive Vice President and Chief Financial Officer
(574) 267-9125
lisa.oneill@lakecitybank.com

The MIL Network –

April 25, 2025

MIL-OSI USA: Congresswoman Ramirez, Housing Advocates Say “Hands Off” Affordable Housing

Source: United States House of Representatives – Representative Delia Ramirez – Illinois (3rd District)

CHICAGO, IL — Yesterday, Congresswoman Delia C. Ramirez (IL-03), local advocates, and public housing residents demanded the Trump Administration abandon actions that deepen the housing affordability crisis, reverse its layoffs of 50% of U.S. Department of Housing and Urban Development (HUD) staff, and reinstate more than $52.5 million in frozen HUD funds for Illinois. During a press conference, the Congresswoman also announced the reintroduction of critical housing legislation that would expand affordable housing funding and protect tenants’ rights to organize. The legislative package includes her Tenants’ Right to Organize Act and a bill to expand permanent housing for veterans through the Veterans Affairs Grant Per Diem Program.

“In the midst of an affordable housing crisis, the Administration is putting in motion a cruel plan to rob working families of the resources we need to thrive and prosper in order to pad the pockets of their billionaire friends. But that won’t deter us. We are standing strong in the plan we unveiled for the future of housing, a progressive vision of affordable, sustainable housing for all, by tenants and for tenants,” said Congresswoman Ramirez, referencing her legislative package for affordable housing unveiled in April 2024. “We believe that HOUSING IS A HUMAN RIGHT. That is why I am using every tool at my disposal to fight back in DC and support our communities organizing for affordable housing for all.”

“We are pleased to welcome Congresswoman Ramirez to 65th Infantry Borinqueneers Apartments, which Hispanic Housing constructed in 2016 to provide supportive housing to veterans with incomes as low as 30% of the area median income,” said Tony Hernandez, President & CEO of Hispanic Housing Development Corporation. “These 48 units are a testament to how a public-private partnership like the Low-Income Housing Tax Credit can combine with dedicated rental subsidies through HUD and the VA to help build homes for those who have served our country. This development could not have been built and could not operate without the HUD and VA programs that Congresswoman Ramirez is fighting to preserve and without the LIHTC, which she is working to expand.“

“Housing is a basic human right—-and that right is under threat as federal housing programs and funding are threatened with cuts and staff are let go,” said Joy Arugete, CEO of Bickerdike Redevelopment Corporation. “But this isn’t just about housing, it’s also about the economy. According to the National Association of Home Builders, building 1000 apartments generates 1250 jobs and $55.9 million in tax and other revenue for local, state, and federal governments. We must come together to ensure everyone has a place to call home, so our communities can truly thrive.”

“Without federal funding sources and the people who make them possible, families will not be able to save or leverage their homes for education, receive lifesaving healthcare, or pass down a home to build generational wealth,” said Amanda Zahorak, Senior Advocacy & Communications Manager for DuPage and Chicago South Suburbs DuPage Habitat for Humanity. “HUD cuts are an injustice to the very magic of being able to show the world what can happen when the government, private, and nonprofit sectors come together to provide the resources our communities need to thrive.”

“As this new administration quietly pulls back support from HUD, low-income families are already suffering. Rent keeps rising, but housing assistance is shrinking while over 10 million renters nationally pay more than half their income just to stay housed,” said Catherine Serpa, CHA resident and Local Advisory Council President for North Central and North West Scattered Sites. And now, programs like Section 8 are being scaled back, leaving families in crisis. Housing is a human right—not a budget cut. If we let this continue, we’re not just losing homes. We’re losing lives.”

“The Administration is turning its back on low-income tenants. It is thus especially important that renters are able to turn towards each other. The Tenants’ Right to Organize Act expands protections to ensure that more renters can come together to advocate for better living conditions –windows that keep out the cold, consistently running water – without fear of reprisal,” said tenants’ rights attorney Eric Sirota.

To watch the full press conference, CLICK HERE.

For photos, CLICK HERE.

Background:

Since coming to Congress, Congresswoman Ramirez has built a coalition with progressives in Congress, local housing leaders, and national organizations to advance a bold vision for the future of housing. Congresswoman Ramirez is centering tenants’ vision and power as a cornerstone of our housing future. Her legislation empowers tenants, especially low-income, women, Black, Brown, and immigrant tenants, to transform the housing landscape in our country.

Ramirez’s multisectoral focus on housing responds to the current national housing crisis, worsened by Trump’s policies. According to the National Housing Coalition, there is a staggering 7.1 million shortage of affordable homes, with over 293,000 just in Illinois. The National Alliance to End Homelessness estimates 771,480 people are experiencing street and shelter homelessness on any given day, setting new records. In addition, tens of thousands of Illinois families live doubled-up with family and friends. It is estimated that the expansion of tariffs on steel, aluminum, lumber, and other construction materials will increase the cost to build affordable, quality housing.

MIL OSI USA News –

April 25, 2025

MIL-OSI Asia-Pac: Union Minister of State for Finance Shri Pankaj Chaudhary presides over Passing Out Parade of 75th batch of 42 Indian Revenue Service (Customs & Indirect Taxes) officer trainees at NACIN, Palasamudram

Source: Government of India

Union Minister of State for Finance Shri Pankaj Chaudhary presides over Passing Out Parade of 75th batch of 42 Indian Revenue Service (Customs & Indirect Taxes) officer trainees at NACIN, Palasamudram

Confident that new batch of officers will advance vision of Viksit Bharat by promoting economic progress and social equality: MoS Shri Pankaj Chaudhary

CBIC Chairman urges officers for balance between enforcement and facilitation, encouraging officers to lead with empathy, confidence, and discipline

Public servants must remain accessible, fair and citizen-centric in their conduct: CBIC Member

The 75th batch is the first to undergo entire Foundation Training at the newly-developed NACIN Palasaudram campus: DG NACIN

Five exceptional performers also earn gold medals in various benchmarked areas

Posted On: 25 APR 2025 4:01PM by PIB Delhi

Union Minister of State for Finance Shri Pankaj Chaudhary presided over the Passing Out Parade today as Chief Guest of the 75th batch of 42 Indian Revenue Service (Customs & Indirect Taxes) officer trainees, including 25 men and 17 lady officers at NACIN, Palasamudram. Five officers are from the Royal Government of Bhutan were also part of the training programme. Also present were Shri Sanjay Kumar Agarwal, Chairman, CBIC, Ms Aruna Narayan Gupta, Member, CBIC, and Dr. M. Subramanyam, Director General, NACIN, along with senior officers of CBIC and dignitaries.

The Passing Out Parade, National Academy of Customs, Indirect Taxes & Narcotics (NACIN), Palasamudram, marks the culmination of an intensive 18-month training programne and commences their journey as Karmayogi, dedicated to safeguarding India’s economic interests.

The ceremony commenced with a solemn observance of mourning and tribute for the victims of the tragic Pahalgam incident, with officers and dignitaries stood in silence to honour victims’ memory.

In his address on the occasion, Shri Chaudhary commended the batch’s achievements and emphasised their responsibility in building a transparent and accountable tax system. Shri Chaudhary highlighted the role of IRS officers in economic growth and urged them to lead with courage and clarity. The Minister expressed confidence in their ability to advance the Government’s vision of Viksit Bharat by promoting economic progress and social equality.

In his address, Shri Sanjay Kumar Agarwal, Chairman, CBIC, congratulated the 75th batch officers and outlined their pivotal role in revenue mobilisation, trade facilitation, and national development and urged them to stay updated, uphold integrity, and embrace digital transformation to serve efficiently. Shri Agarwal further urged them for a balance between enforcement and facilitation, encouraging officers to lead with empathy, confidence, and discipline.

In her address, Ms. Aruna Narayan Gupta, Member, CBIC, stressed on ethical conduct, empathy and continuous learning, while underscoring “Sevabhav” as a foundational quality for IRS officers, urging them to approach their duties with empathy, humility and a service-oriented mindset. She emphasised that public servants must remain accessible, fair and citizen-centric in their conduct, reinforcing that serving people is at the heart of governance.

In his address, Dr. M. Subramanyam, Director General, NACIN, congratulated the officers as they are the first batch to undergo their entire foundational training at the newly developed NACIN Palasamudram campus, making the occasion a historic milestone for the academy. Further emphasising adaptability, public service and the importance of integrity in shaping modern tax officers, he expressed pride in the academy’s evolving capabilities, highlighting its advanced training infrastructure and growing international collaborations.

During the ceremony, the following exceptional performers of the 75^th batch, were honoured with gold medals for their outstanding achievements:

Finance Minister’s Gold Medal: Awarded to Shri Sreekumar Ravindrakumar for achieving balanced excellence in academics, attendance and physical training.
Chairman’s Gold Medal: Awarded to Shri Abhishek Maji for securing the highest aggregate marks in written examinations.
Smt. Kaushalya Narayanan Memorial Gold Medal: Awarded to Ms. Pooja Barwal for her outstanding performance as the best lady officer trainee.
Director General’s Gold Medal: Awarded to Shri Shantanu Sunil Malani for consistent performance and excellent conduct throughout the training.
Shri N.K. Upadhyay Memorial Gold Medal: Awarded to Mrs Sathya Parvathy R for exemplary discipline, conduct and teamwork.

The parade included a display of drills, showcasing the professionalism and discipline of the officers and also reaffirmed NACIN’s role as a world-class institution committed to excellence in training and nation-building. The event concluded with the officers taking a solemn pledge to uphold the values of integrity and service as they step into their roles as economic enablers and defenders of the nation.

****

NB/KMN

(Release ID: 2124290) Visitor Counter : 14

MIL OSI Asia Pacific News –

April 25, 2025

MIL-OSI: GRAVITY ANNOUNCES FILING OF ANNUAL REPORT ON FORM 20-F FOR FISCAL YEAR 2024

Source: GlobeNewswire (MIL-OSI)

Seoul, South Korea, April 25, 2025 (GLOBE NEWSWIRE) — GRAVITY Co., Ltd. (NasdaqGM: GRVY) (“Gravity” or the “Company”) today announced that the Company filed its annual report on Form 20-F for the fiscal year ended December 31, 2024 with the Securities and Exchange Commission on April 25, 2025. The annual report can be accessed on the Company’s investor relations Web site at https://www.gravity.co.kr/en/ir/notice.

The shareholders and ADS holders of Gravity may receive a hard copy of the annual report, which contains its audited consolidated financial statements, free of charge upon request. Requests should be directed to IR Unit, Gravity Co., Ltd., 15F, 396 World Cup buk-ro, Mapo-gu, Seoul 03925, South Korea.

In the annual report on Form 20-F, the consolidated revenue is KRW 500,845 million, the operating profit is KRW 85,384 million, and the net profit attributable to parent company is KRW 84,919 million for the fiscal year ended December 31, 2024.

(In millions of KRW)

	2024	2023	YoY
Revenue	500,845	725,516	-31.0%
Operating profit	85,384	160,367	-46.8%
Net profit attributable to parent company	84,919	132,019	-35.7%

About GRAVITY Co., Ltd. —————————————————
Based in Korea, Gravity is a developer and publisher of online and mobile games. Gravity’s principal product, Ragnarok Online, is a popular online game in many markets, including Japan and Taiwan, and is currently commercially offered in 91 regions. For more information about Gravity, please visit http://www.gravity.co.kr.

Contact:
Mr. Heung Gon Kim
Chief Financial Officer
Gravity Co., Ltd.
Email: kheung@gravity.co.kr

Ms. Jin Lee
Ms. Yujin Oh

IR Unit
Gravity Co., Ltd.
Email: ir@gravity.co.kr
Telephone: +82-2-2132-7800

The MIL Network –

April 25, 2025

MIL-OSI Asia-Pac: EPFO Simplifies Transfer Claim Process Through Revamped Form 13 Functionality; More Than 1.25 Crore Members to Benefit

Source: Government of India

EPFO Simplifies Transfer Claim Process Through Revamped Form 13 Functionality; More Than 1.25 Crore Members to Benefit

Launches Facility for Bulk Generation of UAN by Employers without Aadhaar Seeding

Posted On: 25 APR 2025 2:00PM by PIB Delhi

Simplification of Transfer Claim Process through Revamped Form 13 functionality

To ensure ease of living for its members, EPFO during January this year, has greatly simplified the process for transfer of PF account on change of jobs by removing the requirement of approval from employer in majority of the cases.

Till now, the transfer of PF accumulations used to happen with the involvement of two EPF Offices. One, from which the PF accumulation is transferred (Source Office) and two, the EPF Office in which the transfer is actually credited (Destination Office).

Now, with an aim to further simplify the process, EPFO has removed the requirement of approval of all transfer claims at the Destination Office by launching a Revamped Form 13 software functionality.

Henceforth, once the transfer claim gets approved at the Transferor (Source) Office the previous account will automatically get transferred to the present account of the member at the Transferee (Destination) Office instantly furthering the aim of “Ease of Living” for Members of EPFO.

This revamped functionality also provides the bifurcation of taxable and non-taxable components of PF accumulations to facilitate accurate calculation of TDS on Taxable PF interest.

It is expected to benefit more than 1.25 Crore Members facilitating the transfer of around Rs. 90,000 Crores every year henceforth as the entire transfer process shall be speeded up.

Bulk generation of UAN by Employers without seeding Aadhaar

With a view to further Ease of Doing Business and to address the grievances being raised w.r.t proper accounting of the Past Accumulations that had been remitted to EPFO by the Exempted PF Trusts consequent to the surrender/cancellation of exemption and also in other cases involving remittance of past period contributions consequent to quasi-judicial/recovery proceedings, it has been decided by EPFO to relax the requirement of Aadhaar for generation of UAN/credit of Past Accumulations for such members. Also, a facility for bulk generation of UANs based on the Member Id & other member information available on record so as to enable prompt crediting of funds in the accounts of such members has been provided.

To that effect a software functionality has already been deployed and made available to the Field Offices in the FO Interface for bulk generation of UANs in the above said cases and also account the Past Accumulations without the requirement of Aadhaar in EPFO Application.

However, as a measure of risk mitigation to protect the PF accumulations, all such UANs would be kept in a frozen state and subsequently made operational only after the seeding of Aadhaar.

All these measures are expected to significantly improve services to members and reduce long standing grievances including further streamlining of validations for auto settlement of eligible claims.

******

Himanshu Pathak

(Release ID: 2124244) Visitor Counter : 41

MIL OSI Asia Pacific News –

April 25, 2025

Category: Taxation

Telecom Regulatory Authority of India (TRAI)Meeting of Joint Committee of Regulators (JCoR)

Document

Resolution of April 23, 2025 No. 530

Career Insight: Nadia, Trainee Solicitor, HMRC

Updates to this page

Career Insight: Joe, Trainee Solicitor, HMRC

Updates to this page

IMF Communications Department

MEDIA RELATIONS

EPFO Simplifies Transfer Claim Process Through Revamped Form 13 Functionality; More Than 1.25 Crore Members to BenefitLaunches Facility for Bulk Generation of UAN by Employers without Aadhaar Seeding

Telecom Regulatory Authority of India (TRAI)

Meeting of Joint Committee of Regulators (JCoR)

EPFO Simplifies Transfer Claim Process Through Revamped Form 13 Functionality; More Than 1.25 Crore Members to Benefit

Launches Facility for Bulk Generation of UAN by Employers without Aadhaar Seeding