NewzIntel.com

Category: Transport

  • MIL-OSI New Zealand: Leaves of hope; first signs of mistletoe success at Pirongia

    Source: Department of Conservation

    Date:  29 April 2025

    Long-term restoration efforts began at Pirongia in the early 2000s, and DOC’s Waikato team has been working with Pirongia Te Aroaro ō Kahu Restoration Society, Te Pahū Landcare, and local iwi to restore the maunga and reintroduce native species.

    DOC Waikato Biodiversity Ranger Cara Hansen says the mistletoe species were historically found on the maunga, but the introduction of possums to New Zealand completely wiped the plants out.

    “Possums are the main threat to mistletoe,” Cara says. “They love it, and will they’ll often devour the entire plant if they can. Controlling them is vital; this mistletoe species is only found in New Zealand, just like a massive 84% of our native plants. Species like this need our help, and it’s great to work alongside iwi and the community to protect them.”

    Beginning in 2023, the translocation of pirita/mistletoe (Ileostylus micranthus and Tupeia antarctica) saw DOC staff and volunteers attach seeds to dozens of host trees at Kaniwhaniwha and Pirongia Lodge on the edge of Pirongia Forest Park. The translocation method is simple, swiping the sticky mistletoe seeds on to host trees, much like birds do when naturally spreading the seeds.

    Each host tree received between 10 and 20 mistletoe seeds, which were sourced from a property near Maungatautari. Recent monitoring of 18 host trees at Kaniwhaniwha showed 53 individual mistletoe plants had germinated, and after one year they had between two and four leaves each.

    “The plants can be a little slow to get going, so they’re still pretty tiny,” Cara says. “Once they germinate, they can take a while to attach successfully to the host tree, and will reach maturity in about five years. By then, they’ll have grown to the size of a basketball, and will have started producing fruit.”

    “Over a 10-year period, mistletoe seed will be sown into trees around Pirongia. Sites like Kaniwhaniwha campground are great, as they have a good range of hosts and a lot of light, which really helps the mistletoe since they photosynthesize in addition to taking food and water from their host trees.”

    “Even though this is a great sign, we’re not out of the woods yet,” says Cara. “Continued control of possums and rats at place is key to the project’s success, both to protect mistletoe from browsing pressure, and to increase the native bird species who act as pollinators and seed-dispersers.”

    Pirongia is part of DOC’s National Predator Control Programme, which uses aerially applied toxins to control possums & rats. The two community groups have also contributed to the programme with extensive ground control efforts.

    Aotearoa New Zealand’s has more threatened species than anywhere else in the world, with more than 4000 considered threatened or at risk of extinction. Most of these are only found here, so once they’re gone, they’ll be gone for good.

    Background information

    New Zealand has nine mistletoe species, and the fruit they produce is key food source for many native birds.

    Host tree species for the translocation a Pirongia include mangeao, mahoe and kohūhū.

    Contact

    For media enquiries contact:

    Email: media@doc.govt.nz

    MIL OSI New Zealand News –

  • MIL-OSI United Kingdom: UK researchers access more quantum and space Horizon funding

    Source: United Kingdom – Executive Government & Departments 2

    Press release

    UK researchers access more quantum and space Horizon funding

    EU Commissioner visits London as UK researchers and businesses get access to more Horizon Europe funding calls for quantum and space research

    • Minister for EU Relations today welcomes EU Commissioner Maroš Šefčovič ahead of his first official visit to the United Kingdom.
    • Visit comes as UK researchers and businesses benefit from wider access to Horizon Europe funding calls for quantum and space research, which will help drive sector and economic growth and deliver our Plan for Change.
    • New backing from the world’s largest programme of research collaboration, worth c.£80 billion, builds on high-potential tech areas like AI, telecoms and high-performance computing

    Minister for EU Relations, Nick Thomas-Symonds, today welcomes EU Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency, Maroš Šefčovič, ahead of his first official visit to the United Kingdom under this government (Tuesday, 29 April 2025).

    Commissioner Šefčovič’s visit follows the recent engagement with European Commission President Ursula Von Der Leyen last week, providing a significant opportunity to review the progress of ongoing discussions between the UK and the European Union. This engagement is a key step in the lead-up to the UK-EU Summit scheduled for next month.

    This visit comes as UK scientists, researchers and businesses working on the latest innovations in quantum and space technologies have now been given access to more Horizon Europe funding, under the new 2025 Horizon Europe Work Programme published last week (Friday 25 April).

    Access to Horizon Europe funding, and the opportunities for international collaboration that Horizon presents, will be an important boost to these two sectors which are at the cutting edge of new opportunities for economic growth, helping to drive the Government’s Plan for Change.

    These are technologies that will be instrumental to the future of the economy: quantum computing alone is projected to deliver $5-10 billion of benefits globally over the next 3-5 years, while since 2015 the UK has attracted more private investment in space than any other country outside of the United States.

    During his visit in the UK, the European Commissioner for Trade and Economic Security, alongside the Minister for the Cabinet Office, Nick Thomas-Symonds, will meet professors at Imperial College London who have benefited from Horizon funding for their projects.

    Minister Nick Thomas-Symonds will co-chair the Withdrawal Agreement Joint Committee with Commissioner Šefčovič, who is also scheduled to meet with the Secretaries of State for the Foreign, Commonwealth and Development Office, the Department for Business and Trade, and the Northern Ireland Office. 

    Paymaster General and Minister for the Cabinet Office (Minister for the Constitution and European Union Relations), Rt Hon Nick Thomas-Symonds MP, said:

    In just under a month, the United Kingdom will host the UK-EU Summit here in London. Today provides an opportunity to take stock of negotiations and the progress made. We are fully aligned in our ambitions to build a safer, more secure, and prosperous future for people across the UK and Europe.

    We will always act in the national interest as we work towards a strong and durable strategic partnership with our European partners, unlocking new opportunities for British citizens and businesses.

    UK Science Minister Lord Vallance said:

    Thanks to this welcome news, the opportunities for British researchers and businesses working in quantum, space, and beyond are only set to grow.

    They now have greater access to one of the world’s foremost vehicles for R&D funding, and an even bigger chance to build the international ties which we know are critical to advancing knowledge, tackling the world’s biggest challenges, and delivering the economic growth that is at the heart of this Government’s Plan for Change.

    I want innovators up and down the UK to seize the moment that stands before them. Horizon’s doors are open to you, and we have support available to help you. Now is the time to bid for funding, build consortia, and take your work to the next level.

    The UK gained access to the vast majority (95%+) of Horizon funding calls, when we associated to the programme in 2024, with some very limited exceptions on some emerging technologies.

    Today’s breakthrough comes after a period of constructive collaboration between UK and EU teams and means that more British experts working on space and quantum can now confidently bid for a share of the c.£80 billion that is available through Horizon overall.

    They can also build consortia with research partners across Europe, and beyond in Canada, Switzerland, and more. This includes complete access to all Horizon Europe quantum funding calls.

    Horizon also offers a huge opportunity to businesses and researchers focusing on other cutting-edge technologies, like AI, telecoms, and high-performance computing, including through access to cutting-edge computing resources through EuroHPC. Recent UK-EU engagement has ensured that the UK retains open access to all calls in these areas.

    The Horizon Europe programme is an innovation powerhouse –spending over €380 billion on R&D in 20231 – and fostering deep and high-quality links between the continent’s brightest minds, and the UK’s, will be critical if we are to seize the promise for science and tech innovations to support the Government’s Missions to grow the economy, fix the NHS and improve health outcomes and deliver clean energy under the Plan for Change. Innovative and high-potential sectors like space and quantum will be instrumental to rebuilding the foundations of the economy, and kickstarting growth.

    Greater access to Horizon is a win for the UK, given the growing importance of space and quantum to the economy and society. The UK space sector already employs 52,000 people and generates an of £18.9 billion each year.

    Meanwhile new innovations in quantum – harnessing the unique properties of subatomic particles to process information and solve problems – are already unlocking breakthroughs in healthcare, logistics, financial services and more. On top of this, experts working in fields like AI, high performance computing, and future telecoms continue to enjoy valuable Horizon access, as well as a vast number of other sectors including food and agritech, digital, industry and more.

    British researchers having access to more Horizon science funding calls also further emphasises the value of the UK’s participation in the EU’s Copernicus Earth Observation programme.

    Furthermore, the UK and EU have a strong shared commitment to developing assured and independent European access to space: work which forms a key part of the UK’s own ambitions for space launch. With plans for the first launches from SaxaVord in the Shetland Islands later this year, the UK is a leading international partner and cooperator in Europe’s space ambitions and it is encouraging that British researchers will be able to access calls that help to further Europe’s ambition.

    There is no time to lose for businesses, researchers, and scientists working in quantum, space and beyond to take advantage of this news, because new Horizon funding calls open in the coming weeks. New space and industry calls open from Thursday 22 May, and digital calls open from Tuesday 10 June.

    Notes to editors

    Since 2024, the government has provided extensive assistance to our R&D communities to maximise their chances of applying and succeeding in Horizon Europe. In addition to concrete funding initiatives, such as Pump Priming,  we recently piloted brokerage visits to Italy, Germany and Spain for UK innovators and researchers looking to build Horizon consortia. Last month, more than 500 of the UK’s leading researchers, businesspeople and scientists gathered at London’s Oval for a Showcase event sharing insight on opportunities available through Horizon. Further information, including practical support on how to apply, is available on the Horizon Hub website. UK Research and Innovation (UKRI) also host regular events that help guide businesses and researchers through the opportunities on offer and the application process. We will continue to review the needs of the UK R&D community in order to offer support and facilitate access to Horizon Europe opportunities.

    Potential applicants can find Horizon Europe calls (funding opportunities) open to UK-based applicants using the European Commission’s funding and tender opportunities portal.

    More information on how to submit applications are available on the European Commission’s website. The pre-publication of the Horizon Europe 2025 Work Programme can be found here.

    DSIT media enquiries

    Email press@dsit.gov.uk

    Monday to Friday, 8:30am to 6pm 020 7215 3000

    Updates to this page

    Published 29 April 2025

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Government takes leaps forwards in driving up school standards

    Source: United Kingdom – Government Statements

    Press release

    Government takes leaps forwards in driving up school standards

    New regional improvement teams expanded to reach more than 200 schools and 120,000 children to drive up standards across the country.

    Thousands more children are set to benefit from the government’s flagship new school improvement teams, as the programme significantly ramps up this week.

    The government’s RISE (Regional Improvement for Standards and Excellence) teams are expanding their reach from an initial 32 schools, to more than 200 reaching over 120,000 children.

    The drive comes as the government’s Children’s Wellbeing and Schools Bill progresses in the Lords this week, with new laws to put money back in parents’ pockets, keep children safe and bring every school up to the standard of the best.

    RISE teams are backed by £20 million, and central to the government’s mission to drive up school standards for children in all corners of the country, as part of its Plan for Change.

    Each RISE school could be eligible for support of up to £100,000 to help turn around the quality of education for children and young people.

    This expansion goes hand in hand with a tripling of the government’s team of RISE advisers, with an additional 45 starting their work this week, bringing the total to 65.

    Every adviser is an expert with a track record of improving schools, with the majority academy trust leaders, with advisers already hitting the ground running to drive up improvement in schools.

    There are more than 600 ‘stuck’ schools in England that have received consecutive poor Ofsted judgements, and which are attended by more than 300,000 children.  

    Data shows that the schools RISE advisers are supporting, have spent an average of 6.6 years rated by Ofsted as below good or equivalent, amounting to a child spending their whole primary or secondary school years in an underperforming school.

    Education Secretary, Bridget Phillipson said:

    No child should be spending precious days, let alone years, in schools that are underperforming.

    Our new RISE teams, made up of the best of the best in school improvement, can be the spark that turns around the life chances of tens of thousands of children.

    RISE teams have already hit the ground running, and as we deliver on our Plan for Change, I am determined to make sure we lift every school, for every child, up to the standard of the best.

    Dozens of the schools have been stuck for more than six years and 42 for more than 11 years, reinforcing the need to secure swift improvement for children across the country.

    As part of the bespoke improvement plans drawn up by the RISE advisers, working with the school’s responsible body, the first 32 ‘stuck’ schools have already started to be paired with supporting organisations, including high-quality multi-academy trusts, who will provide support and expertise to assist the schools on their improvement journeys.

    Some of these supporting organisations include high-performing multi academy trusts who have years of experience working with the sector. Mulberry Schools Trust, L.E.A.D Academy Trust and the Northern Education Trust are a few of many trusts involved in supporting other schools.

    Gaenor Bagley, Chair of Trustees and Dr Karen Roberts, CEO, The Kemnal Academies Trust, whose schools, are receiving RISE support said:

    We would like to say, at this juncture and for the record, just how refreshing, different and positive the experience of working with the RISE advisers has been – it really does feel like a genuine partnership.

    More widely teams will also work across all schools up and down the country providing a universal service, signposting to best practice and bringing schools together to share their knowledge and innovation, focusing on four national priorities: attainment, attendance, inclusion and reception year quality.

    RISE adviser, Dr Herminder K Channa, Oasis Community Learning Regional Director, said:

    I am deeply honoured to take on the RISE Adviser role, fully aware of the responsibility it carries. At its heart, RISE reflects a powerful truth: we are stronger when we stand together.

    This policy unites us as a sector regardless of trust, local authority, faith or context with a shared commitment to ensure every child can achieve and thrive.

    By championing collaboration over fragmentation and support over intervention, RISE unlocks the collective expertise across our system. Together, we can build a future where excellence is not the exception, but the expectation for every school, every teacher, and every child.

    RISE adviser, Anita Cliff, Chief Executive Advisor, Manor Multi Academy Trust, said:

    I’m privileged to serve as a Regional Improvement Adviser for Standards and Excellence with the Department for Education. This role gives me the opportunity to support schools across the region in removing barriers to achievement—helping to transform children’s life chances and ensure every child can thrive, regardless of background.

    RISE adviser, Lee Mason-Ellis, Chief Executive, The Pioneer Academy, said:

    RISE is a fantastic opportunity to work across and within our sector, in a collaborative way; to ensure that every child, no matter where they live, receives a good education in strong schools. Who wouldn’t want to be part of this amazing opportunity to improve life chances of our children, across the nation.

    I firmly believe that RISE will bring the education sector together, working in partnership, in collaboration – together sharing and problem solving for the benefit of all children across the nation.

    As a further commitment to support its ongoing engagement with the sector the Department for Education is also establishing a new RISE operational stakeholder group to advise on delivery to ensure views are reflected.

    Updates to this page

    Published 29 April 2025

    MIL OSI United Kingdom –

  • MIL-OSI New Zealand: Statement by Minister Todd McClay following the March 2025 Pastoral Sector Group meeting

    Source: New Zealand Government

    The Pastoral Sector Group (PSG) has held its first meeting, discussing farm emissions.
    The group consists of Agriculture, Trade and Investment Minister Todd McClay, Climate Change Minister Simon Watts, and Chairs and CEOs from: Beef + Lamb New Zealand, Dairy Companies Association of New Zealand, Dairy NZ, Deer Industry New Zealand, Federated Farmers, and the Meat Industry Association.
    Pasture Sector
    Sector representatives contributed perspectives on the current state of the industry and a desire to work constructively toward a positive outcome for the rural sector.
    They underlined the significant effort made by farmers to date. 
    They stressed the need for any consideration of emissions reduction to be based upon science and to be solutions driven. 
    They stressed the need to revise the domestic methane target based on the principle of no additional warming. 
    They stressed the need for any solutions to be affordable for farmers; and for the need to avoid imposing costs upon industry and government. 
    They voiced concerns about the effects afforestation was having on the pastoral sector and welcomed the Government’s recent announcement to restrict farm to forest conversions. 
    They raised concerns about the negative impact that a price on agricultural emissions would have on production. 
    They stressed the need for certainty and time for the primary sector.
    Government
    Ministers reiterated that this group was to allow the sector to provide their views to government directly and to engage in a respectful dialogue.
    Ministers thanked the primary sector for their significant contribution to New Zealand, and in particular, the importance of a strong primary sector to the New Zealand economy.
    They stressed that the PSG was an opportunity to talk openly and that it was not a decision-making body.
    The members of the group agreed that New Zealand farmers are among the world’s most carbon-efficient food producers and were willing to do their part for New Zealand’s overall commitment to reduce emissions.
    Ministers confirmed the following:

    That the Government has removed agriculture from the Emissions Trading Scheme.
    That the Government has disbanded He Waka Eka Noa.
    That the Government is committed to a split gas approach.
    That the Government commissioned an independent scientific review on the role of biogenic methane against additional warming.
    That the Government will pass legislation this year to implement its decision of 4 December 2024 to restrict full farm to forest conversions.
    That the Government is committed to meeting New Zealand’s climate obligations without closing down farms or sending jobs and production overseas.
    That all decisions in respect to farm emissions will be informed by accepted science.
    That the Government is mindful of the impact of costs related to emissions reduction on farmers; and the implications that cost could have for production.
    That a revised 2050 biogenic methane target will be set this year.
    That the Government is committed to the use of science and innovation to reduce emissions, not reducing on farm production.
    That it is for New Zealand to decide how to reduce emissions.
    That New Zealand has climate change obligations under some trade agreements and that the Government will be guided by domestic considerations and interests including those of New Zealand producers and the economy.
    The Government currently has a plan that shows New Zealand can meet its obligations while growing the economy and without closing down farms or sending production or jobs overseas.
    That the Government will continue to build confidence in the primary sector.

    The PSG will meet again next month.

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Budget 2025: The Growth Budget

    Source: New Zealand Government

    Tēna koutou kātoa.  Greetings everyone. Can I thank you Malcolm for that kind introduction and thank everyone who has taken the time to be here today. My special thanks go to our hosts Metco Engineering and the Hutt Valley Chamber of Commerce.
    Let me also acknowledge my colleagues who join us today – your local MP and my Associate Minister of Finance the Hon Chris Bishop, together with the Minister of Education the Hon Erica Stanford. 
    This factory is a bit of a different setting than the conference centre or ballroom Ministers typically use for a pre-Budget speech. Why?
    Because places like this are the engine room of the New Zealand economy.
    Our Government knows that to speed up the economic recovery New Zealanders need we have to get this growth engine cranking.
    I appreciate that economic growth can be a bit of an abstract concept: the work that happens on this factory floor is what it’s all about.
    The workers at Metco solve problems, coming up with new products and manufacturing processes for a range of industries. They design and create clever components for customers around the world – producing everything from window stays through to bus stops.
    Metco has grown successfully by making investments in its own machinery and technology and by hiring and up-skilling great people who come up with innovative ideas and then make them happen.
    The growth of businesses like MetCo, and indeed of all the businesses represented in this room today, has created good jobs and livelihoods for the people of the Hutt Valley community. 
    It’s also allowed your businesses to make healthy tax contributions, which helps fund the Government’s investment in health services, schools, vital infrastructure and other important public spending. 
    Thank you for that contribution, we don’t take it for granted.
    New Zealand needs more success stories like MetCo: Your growth is what’s needed to deliver the kind of country we all want: with better living standards, better job opportunities and more financially secure families.
    That’s why our Government is going for growth.
    Earlier this year we released a snapshot of the work we have underway to support this growth agenda. Going for Growth sets out 87 specific actions we are taking under five key themes: 

    Developing talent
    Competitive business settings
    Innovation, technology and science
    Overseas investment and trade
    Infrastructure for growth

    I encourage you to check out the plan and the work underway. There’s more to come.  
    For today though, I’m going to switch out of my Economic Growth hat and into my Minister of Finance hat and focus my remarks on this year’s Budget. 
    The Context for Budget 2025
    The Government’s growth ambition has been front and centre as we’ve put the Budget together.  
    We know that global uncertainty is challenging for many of you and we’re determined our Budget will play a role in giving you confidence for the future.  
    But let me be blunt: it’s not the easiest time to be putting together a Budget.
    New Zealand is still recovering from the economic damage inflicted during the Covid period and we’re now facing the headwinds of further global instability.
    There is a pressing need for greater investments in our health system, our education system, our defence force and other areas, and very little money to pay for those investments.   
    Our Government is also acutely conscious of the challenging economic circumstances many New Zealanders have experienced in the past few years as we’ve emerged from a period of very high inflation and rapidly rising interest rates. 
    The pain is still rippling through our communities. Kiwis feel it in the higher prices they still pay for almost everything, in higher levels of unemployment and in struggling local businesses. The cost of living remains a top-of-mind concern.  
    The good news is that, despite significant global challenges, a steady economic recovery is now taking place here, with export-led growth gathering strength, business confidence coming off its lows and the primary sector benefiting from higher commodity prices and mostly favourable growing conditions. 
    Having considered everything happening around the world, the Treasury is continuing to forecast accelerating growth in the New Zealand economy over the coming year, with falling unemployment forecast to follow in the second half of the year. 
    There’s no magic wand to wish away the price rises baked in over recent years, but getting inflation and interest rates under control has been essential to achieving this economic recovery.  
    That’s why I always take pause to celebrate that since our Government came to office inflation has returned to normal levels, resulting in a 200 basis point reduction in interest rates. 
    We must not take this progress for granted. 
    While some pretend we can fix all the post-Covid damage with yet more extravagant government spending, the economic truth is that they are wrong. 
    The only way to sustainably overcome cost of living pressures is through successive years of stable inflation, careful investment and sustained economic growth. 
    Our Government is committed to the responsible fiscal management and growth supporting policies needed to make that happen. 
    Debt, deficit and the path out
    An important part of that effort is getting our own books in order. That’s a big task.
    The previous Government’s spending decisions during and after Covid have left New Zealand with a sea of debt and red-ink in the government finances.
    Government debt leapt up by almost $120 billion between 2019 and 2024, soaring from under $58 billion to $175 billion. 
    Those are big numbers, almost too big to comprehend, so let me explain it this way: That amounts to $22,000 more in debt for every New Zealander.
    You may well ask: what do we have to show for all that debt? 
    To give you some further historical context, New Zealand’s net core Crown debt, which once hovered between five and 25 per cent of GDP, rose to around 42 per cent last year. That’s the highest level of government debt New Zealand has shouldered since the mid-1990s.    
    Servicing that debt is expensive.  
    The interest bill on government debt has soared from $3.6 billion in 2014 to $8.9 billion last year.  That sum is more than annual core Crown expenses for the Police, Corrections, the Ministry of Justice, Customs and the Defence Force combined.
    Our Government’s goal is to put net core Crown debt on a downward trajectory towards 40 per cent of GDP and in the longer term keep it below that percentage. 
    Why?  Because allowing debt to keep spiralling would threaten the livelihood of every New Zealander.  
    We must ensure our country is financially strong and resilient enough to effectively respond to whatever the future may throw: be it earthquakes, extreme climatic events, biosecurity incursions or whatever. We need the world to keep seeing us as a good country to invest in and lend to. Manageable debt levels are an essential foundation for a strong economy and for your financial future.
    Achieving lower debt levels isn’t easy: especially because the government books remain out of balance.
    The post-Covid ‘structural deficit’ has left a big gap between what the country needs to fund to deliver on the spending commitments previous Budgets have made and what we need to earn to pay for that spending.  
    The Government is currently borrowing billions to bridge the gap.
    Every Thursday afternoon, New Zealand Debt Management issues around $500 million of Government bonds. Some of this is to that roll over existing bonds that have expired, but large chunks of it are for new borrowing. 
    That level of borrowing obviously can’t go on forever, or else our kids and grandkids will be left with unsustainable debt and considerable economic uncertainty. 
    Most of you can probably relate to this if you think about your own household budget: sure, sensible borrowing has its place, but no overdraft can be extended forever, and while you can keep giving the credit card a hammering, left unpaid, it does, eventually, get declined.  
    It’s worth bearing this in mind next time somebody tries to suggest to you that the New Zealand Government needs to spend more on something.  
    The second question always needs to be: but how will we pay for it?  
    Our Government’s strategy is to reduce the deficit over time, through a gradual programme of consolidation and careful spending choices.  
    We are committed to maintaining stability for New Zealanders, by continuing to invest in essential frontline services, infrastructure for growth and social supports like superannuation. 
    But delivering those things requires us to make careful choices about what we spend elsewhere. 
    That’s why we’ve committed ourselves to ongoing reprioritisation and fiscal restraint. It isn’t easy, but it is essential. 
    Believe me, I’d rather we were in clover, with money to spend on all the good ideas we hear. But the reality is that we are governing in tighter times.  
    Economic growth is essential to our fiscal repair job.  It’s simply the most effective way to raise government revenue, and to give us better choices for the future.
    Some have suggested a different approach. They say New Zealand should seek to close the deficit by simply adding more and higher rates of taxes to Kiwis’ wages, savings, wealth or capital.  
    We reject that approach.
    Punishing Kiwis with higher taxes right now would undermine our recovery, strangle growth and threaten the economic stability New Zealand needs. 
    It would pull the rug out from all those businesses and industries who are already just hanging on. And it would send an exodus of Kiwi talent and wealth to Australia and beyond.  
    It would be exactly the wrong recipe for a country whose future prospects depend on investment and growth.  
    Changes in the economic and fiscal outlook since HYEFU
    The Treasury’s last set of economic forecasts was presented at the Half Year Update in December.
    As you know, the global economic outlook has worsened considerably since that update.
    Tarriff announcements by the US government, countervailing tariffs being imposed by China and an uncertain path for future tariffs and exemptions have created volatile global economic conditions with forecasters around the world agreeing that global growth will be lower this year and next year than they were previously predicting.  
    New Zealand can’t escape the fallout. 
    Accordingly, Treasury has adjusted the forecasts it presented in December, reducing their assumptions of real GDP growth in New Zealand in 2025 and 2026.  
    New Zealand’s economy will still be growing, but not as fast as forecast a few months ago.
    That lower growth trajectory has an inevitable impact on the government books, reducing revenue and threatening our already difficult return to surplus and debt reduction.  
    At the same time, it’s clear that the country’s need for investment has not lessened: whether it be in the infrastructure we need for a more productive future, the funding needed to meet pressures in our health service and education system; or the need to rebuild our defence capability to meet the challenges of a less stable world.
    On top of all of that, it’s also the case that New Zealand’s long-term productivity and savings challenges haven’t gone away. 
    So there’s a huge amount to juggle in this year’s Budget.
    How has the Government managed these challenges?
    We started with that question that I suggested to you earlier:  How do we pay for the things we need now without putting our future economic stability at risk?  
    Our approach has been threefold.  
    First, there has been a very high bar for new initiatives in the Budget.  I can confirm today that there will be no lolly scramble in Budget 2025.  New spending initiatives are strictly limited to the most important priorities: our focus has been on health, education, law and order, defence, and a small number of critical social investments. We have also found room for modest measures to support business growth and to provide some carefully targeted cost of living relief.
    Second, beyond a small number of exceptions, government departments are not receiving additional funding in the Budget. We expect government agencies to adjust themselves to New Zealand’s limited fiscal means. This will require restraint in public sector wage increases and an ongoing commitment to getting more impact out of every dollar spent.  
    Third, we have undertaken a significant savings drive.  
    That effort has involved Ministers identifying areas of previously committed spending that can no longer be justified in light of the challenging circumstances New Zealand now faces.   
    We’ve analysed spending decisions made by previous governments and re-evaluated them in the context of today’s constraints. This has involved a line-by-line review of previous funding commitments, including money put aside in contingency.
    This reprioritisation exercise has required careful consideration and some tough, but necessary, choices. 
    At every step, we’ve asked ourselves two questions:

    Can these dollars be justified when we are borrowing to pay for them?
    Can we be sure these dollars will do more good in this area than if invested in our most pressing priorities – like funding essential health services, better educating our kids, defending New Zealand’s security or ensuring our future growth?

    Taken together, the Government’s savings drive has freed-up billions of dollars. Those savings will now be re-deployed to fund New Zealand’s most pressing priorities.
    Sticking to the fiscal strategy
    In this year’s Budget we’ve also had to carefully consider whether, in light of major global economic events, our fiscal strategy still remains achievable.
    The strategy is focused on two key goals: putting net debt on a downward trajectory and returning the books to an OBEGALx surplus by 2028.  
    This strategy matters, it matters for getting the books back in order and that’s about more than a set of numbers. It’s about keeping interest rates lower and providing a solid platform for future growth. It’s about ensuring New Zealand continues to be seen as a stable, reliable place to invest in and lend to. It’s about making sure we don’t leave our kids and grandkids with debts they just can’t repay. 
    At our last update in December – well before President Trump’s “Liberation Day” – we were expecting a small surplus in 2029, and it remained our intention to returning it a year earlier if possible.  
    I can confirm that our Government remains committed to those goals. 
    Sticking to them has required some careful adjustments in this year’s Budget.
    The key change we have made is to the size of this year’s “operating allowance” – that is the amount of money put aside for new spending.   
    At the Half Year Update, the Treasury forecast that the “allowance” in Budget 2025 would be $2.4 billion. 
    That was always a small envelope. However, as I outlined earlier, our approach has been to supplement our new spending by reprioritising funds from elsewhere.
    I am confirming today that the Government has reduced the size of our Budget 2025 operating allowance to $1.3 billion.
    This means we will be spending billions less over the forecast period than would have otherwise been the case. This will reduce the amount of extra borrowing our country needs to do over the next few years and it will keep us on track towards balanced books and debt reduction.
    The fiscal forecasts will not be finalised until later this week, but according to the latest numbers I have seen, this smaller operating allowance means we will continue to forecast a surplus in 2029. 
    The reality of global economic events is that if we’d pushed on with a larger operating allowance then we would be staring down the barrel of even bigger deficits and debt.  
    Let me emphasise once again: our Budget will still deliver increased investment in the things that really matter to Kiwis: like health, education, law and order, the defence force, business growth and targeted cost of living relief. Those things are important to you and they’re important to our Government. 
    Our careful reprioritisation approach means we can continue to make progress on today’s priorities while ensuring we are better positioned to face the challenges tomorrow will bring.
    Yes, those challenges loom large. 
    But let’s get real: global instability may not be a passing trend. New Zealand can’t expect to keep borrowing as much as we are now. The world doesn’t owe us any favours.
    This is not the time to kick the can down the road.  
    We must act now to secure our financial future.  
     
    Conclusion
    In conclusion, Budget 2025 takes place against a difficult global backdrop. 
    We can’t wish that away. What we can do is focus on the things in our control.
    Our Government is doing just that, by providing a predictable, steady approach to economic and fiscal management. 
    In an unstable world we are staying the course with responsible policies that provide stability, support investment and make New Zealand an attractive place for the world to trade and do business with.  
    These sensible policy approaches are the base from which we will deliver better choices and investments in the years ahead.
    With those basics in place, there is much for Kiwi businesses to feel optimistic about.  
    New Zealand has enormous economic growth potential. 
    We are a safe, secure country with a growing constellation of free trade agreements and a global reputation as a good place to do business.
    We are blessed with abundant natural resources – everything from ocean to freshwater, fertile land and temperate weather to abundant minerals.
    In a world worried about food security, we feed more than 40 million people with levels of efficiency and sustainability that are the envy of many.
    We have a long history of stable democracy, strong institutions and rule of law.
    We’ve delivered scientific breakthroughs and global success stories and we will continue to do so.  As I stand here today, we are world leaders in sending rocket to space – rockets that include components made right here in this factory. 
    Fundamentally, I’m optimistic about New Zealand’s economic future because I have faith in you: the New Zealanders who get out of bed each morning and go and make things happen.  
    I’m optimistic because I see how hard Kiwis work. I see how much effort Kiwi parents go to for their kids. I see how much employers and workers care about their communities. We are a smart, innovative, resilient people.  
    The next decade can be our decade. That requires good and steady government and careful spending choices. This year’s Budget will not be a lolly scramble.  What this Budget will be is a responsible Budget that secures New Zealand’s future.
     

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Transport Minister to visit Sydney

    Source: New Zealand Government

    Transport and Infrastructure Minister Chris Bishop will travel to Sydney today to further promote New Zealand’s infrastructure investment opportunities following the NZ Infrastructure Investment Summit last month.
    “The Government has signalled that New Zealand is open for business and going for economic growth. In Sydney I will present a New Zealand Government Infrastructure Investment update to the International Project Finance Association, highlighting the range of upcoming investment opportunities across New Zealand’s infrastructure pipeline,” Mr Bishop says.
    “I will attend the 2025 National Infrastructure Awards dinner, hosted by Infrastructure Partnerships Australia, and host an NZTE Investors Roundtable lunch with a range of major potential investors in New Zealand.
    “While there I will also visit a range of transport projects, including the WestConnex toll road, and the Paramatta Transit-Oriented Development (TOD) programme. All of these projects offer lessons for New Zealand as we embark on our ambitious transport investment programme.”
    Mr Bishop leaves for Sydney today and will conclude his visit on Friday 2 May.

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Huge benefits available from medical conferences

    Source: New Zealand Government

    Outdated regulations stopping trained medical professionals from learning about new medicines through trade show advertising are out of step with other countries and disadvantage New Zealanders, Regulation Minister David Seymour, Health Minister Simeon Brown and Tourism and Hospitality Minister Louise Upston say.
    “New Zealand’s prohibition on advertising medicines yet to be consented by Medsafe is a barrier to New Zealand’s ability to host medical conferences and trade shows. The opportunity cost of New Zealand missing out on these is huge,” Mr Seymour says.
    These laws will be reformed so medicines yet to be consented by Medsafe can be advertised at medical conferences in New Zealand, instead of New Zealand health professionals needing to travel overseas.
    “Prohibition was introduced in response to the perceived risk that pharmaceutical companies may attempt to circumvent formal medicine approval processes. The Ministry for Regulation has investigated and found this overly cautious approach is out of step with other recognised jurisdictions and is not proportionate to the perceived risk,” Mr Seymour says.
    “Other nations like Australia, Canada, and the European Union allow advertising to generate revenue and provide medical professionals with information on cutting edge medicines. New Zealand doesn’t need to be left behind because of outdated red tape.
    “This change is estimated to generate $90 million in associated revenue over the next few years.
    “Prohibition also contradicts this Government’s efforts to increase medicines access. Allowing these products to be advertised would upskill doctors and give them the knowledge and skills to prescribe these treatments safely to Kiwis who need them.”
    “This Government is committed to removing regulatory barriers so that we can drive economic growth. Removing the red tape around medical conferences will make New Zealand a better destination for conference organisers, while also making it easier for our own healthcare professionals to keep up with the latest innovations in health products and medicines,” Mr Brown says.
    “New Zealand’s current health regulations can be overly bureaucratic, and this is slowing down access to care, increasing costs, and making it harder for patients to get the services they need.
    “Our regulations can also make it harder to attract, train and retain healthcare workers. Workers want to work with top class treatments and patients want to be able to access them.
    “Medical conferences are a great way to expand the collective knowledge and skill of the health workforce through the transfer of ideas and technologies.
    “The Government is investing more than ever into our health system – a record $30 billion each year – and we expect it to deliver more for patients as a result.”
    “Removing these barriers will also give us an opportunity to showcase our new conference facilities, fantastic hotels, and experiences, and pitch New Zealand as a world class location for business events like medical conferences,” Tourism and Hospitality Minister Louise Upston says.
    “Business event participants spend an average of $175 more per day than other visitors, and often travel during the off-peak season, boosting tourism and economic activity year-round.
    “Our message is clear, New Zealand is open for business. We are looking forward to welcoming more medical conferences to New Zealand, and we have great facilities to host them.”

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Taupō Hospital accredited to train next generation of rural doctors

    Source: New Zealand Government

    Taupō Hospital has become the first hospital in the North Island to receive accreditation to deliver Australian College of Rural and Remote Medicine (ACRRM) training, Health Minister Simeon Brown and Associate Health Minister Matt Doocey have announced.“The Government is committed to growing and strengthening our health workforce, and a strong rural workforce is a key part of that,” Mr Brown says.“In rural settings where access to specialist health services can be limited, generalist doctors – who can work flexibly across multiple disciplines and service areas – play a vital role.“This accreditation is a significant step towards building a stronger rural health workforce in Taupō. It will help increase the number of doctors trained with the broad skills needed to support the surrounding rural communities.“Rural generalists can sustainably manage a broad range of patient needs and work within clinical networks to ensure patients get access to specialist teams when required.“The ACRRM programme will enable registrars to train to work in Taupō Hospital while also developing advanced skills in fields such as obstetrics, anaesthetics, mental health, or endoscopy.Mr Doocey says being an accredited ACRRM training location means Taupō can attract both New Zealand and Australian registrars and graduates and provides an opportunity for some New Zealand doctors working overseas to return home during their training.“One of the five priorities of the National Rural Health Strategy is to create a valued and flexible rural health workforce, and training young doctors as rural generalists directly supports this goal,” Mr Doocey says.“Taupō Hospital’s new accreditation complements the existing pathway for New Zealand doctors through the New Zealand Rural Hospital Medicine Training Programme. “All New Zealanders deserve timely access to quality healthcare, and the Government is committed to improving health outcomes, particularly for the one in five Kiwis living in rural areas.“To improve access and rural health outcomes, we must invest in growing and supporting the rural health workforce. Taupō Hospital’s accreditation is an important step towards that.”

    MIL OSI New Zealand News –

  • MIL-OSI Australia: Greasing the wheels of the energy transition to address climate change and fossil fuels phase out

    Source:

    29 April 2025

    The global energy system may be faced with an inescapable trade-off between urgently addressing climate change versus avoiding an energy shortfall, according to a new energy scenario tool developed by University of South Australia researchers and published in the open access journal Energies.

    The Global Renewable Energy and Sectoral Electrification model, dubbed ‘GREaSE’, has been developed by UniSA Associate Professor James Hopeward with three civil engineering graduates.

    ‘In essence, it’s an exploratory tool, designed to be simple and easy for anyone to use, to test what-if scenarios that aren’t covered by conventional energy and climate models,’ Assoc Prof Hopeward says.

    Three Honours students – Shannon O’Connor, Richard Davis and Peter Akiki – started working on the model in 2023, hoping to answer a critical gap in the energy and climate debate.

    ‘When we hear about climate change, we’re typically presented with two opposing scenario archetypes,’ Assoc Prof Hopeward says.

    “On the one hand, there are scenarios of unchecked growth in fossil fuels, leading to climate disaster, while on the other hand there are utopian scenarios of renewable energy abundance.”

    The students posed the question: what if the more likely reality is somewhere in between the two extremes? And if it is, what might we be missing in terms of risks to people and the planet?

    After graduating, the team continued to work with Assoc Prof Hopeward to develop and refine the model, culminating in the publication of ‘GREaSE’ in Energies.

    Using the model, the researchers have simulated a range of plausible future scenarios including rapid curtailment of fossil fuels, high and low per-capita demand, and different scenarios of electrification.

    According to Richard Davis, “a striking similarity across scenarios is the inevitable transition to renewable energy – whether it’s proactive to address carbon emissions, or reactive because fossil fuels start running short.”

    But achieving the rapid cuts necessary to meet the 1.5°C targets set out in the Paris Agreement presents a serious challenge.

    As Ms O’Connor points out, “even with today’s rapid expansion of renewable energy, the modelling suggests it can’t expand fast enough to fill the gap left by the phase-out of fossil fuels, creating a 20 to 30-year gap between demand and supply.

    “By 2050 or so, we could potentially expect renewable supply to catch up, meaning future demand could largely be met by renewables, but while we’re building that new system, we might need to rebalance our expectations around how much energy we’re going to have to power our economies.”

    The modelling does not show that emissions targets should be abandoned in favour of scaling up fossil fuels. The researchers say this would “push the transition a few more years down the road”.

    Assoc Prof Hopeward says it is also unlikely that nuclear power could fill the gap, due to its small global potential.

    “Even if the world’s recoverable uranium resources were much larger, it would scale up even more slowly than renewables like solar and wind,” he says.

    “We have to face facts: our long-term energy future is dominated by renewables. We could transition now and take the hit in terms of energy supply, or we could transition later, once we’ve burned the last of the fossil fuel. We would still have to deal with essentially the same transformation, just in the midst of potentially catastrophic climate change.

    “It’s a bit like being told by your doctor to eat healthier and start exercising. You’ve got the choice to avoid making the tough changes now, and just take your chances with surviving the heart attack later, or you get on with what you know you need to do. We would argue that we really need to put our global energy consumption on a diet, ASAP.”

    The researchers have designed the model to be simple, free and open source, in the hope that it sparks a wider conversation around energy and climate futures.

     

    Full paper details:

    Hopeward, J., Davis, R., O’Connor, S. and Akiki, P. (2025) The Global Renewable Energy and Sectoral Electrification (GREaSE) Model for Rapid Energy Transition Scenarios, Energies 18(9). https://www.mdpi.com/1996-1073/18/9/2205  

     

    …………………………………………………………………………………………………………………………

    Contact for interview: Assoc Prof James Hopeward
    M: +61 408 819 175       E: james.hopeward@unisa.edu.au

    Media contact: Candy Gibson
    M: +61 434 605 142       E: candy.gibson@unisa.edu.au

    MIL OSI News –

  • MIL-OSI Security: Ohio Men Receive Lengthy Prison Sentences for Trafficking Fentanyl and Methamphetamine, and other charges

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

    AKRON, Ohio – Andrew Corbin, 36, and Calvin Roberts, 42, both of Akron, have been sentenced to prison after pleading guilty to drug trafficking conspiracy charges. U.S. District Court Judge John R. Adams sentenced Corbin to 15 years (180 months) in prison. Corbin pleaded guilty to conspiracy and possession with intent to distribute fentanyl and methamphetamine and to using his residence to conduct drug-related activities. Roberts was sentenced to more than 19 years in prison (235 months) by Judge Adams. Roberts pleaded guilty to conspiracy and distribution of fentanyl and methamphetamine and for using his home to store the substances and conduct drug transactions. Additionally, Roberts pleaded guilty to being a felon in possession of a firearm and ammunition. He was previously convicted of trafficking heroin in 2013 and 2020.

    According to court documents, from about April 1 to about Aug. 28, 2023, Roberts obtained distribution quantities of methamphetamine and fentanyl from a local supplier. In turn, Roberts would sell drugs to his neighbor, Corbin, who lived only a short distance away on the same street. The two defendants regularly sold drugs out of their homes. Using a network of co-conspirators, they further distributed these drugs to customers in and around the Summit County area. 

    During a search warrant execution of Roberts’s residence on Aug. 28, 2023, investigators seized a loaded Smith and Wesson 9mm pistol, ecstasy pills, a digital scale, an extended magazine, and two cellphones. He later admitted to selling fentanyl and methamphetamine out of his home for about $1,600-$1,900 per pound. On the same day, investigators executed a search warrant at Corbin’s residence and seized a Phoenix Arms 9mm pistol, ammunition, scales, drug paraphernalia, and several cellphones. During the investigation, Corbin admitted to using and selling drugs that he purchased from Roberts.

    Collectively, the seized drugs weighed in at approximately 17 ounces and were calculated to have a street value of more than $8,000.

    Other co-conspirators were also indicted in this case. Ernest Shropshire, 39, of Akron, pleaded guilty to drug conspiracy charges and is scheduled to be sentenced May 22, 2025. Phillip August, 57, of Akron, pleaded guilty to drug conspiracy charges and is scheduled to be sentenced May 20, 2025.

    This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The case was prosecuted by Assistant U.S. Attorney Joseph P. Dangelo for the Northern District of Ohio.

    MIL Security OSI –

  • MIL-OSI: Five Star Bancorp Announces First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    RANCHO CORDOVA, Calif., April 28, 2025 (GLOBE NEWSWIRE) — Five Star Bancorp (Nasdaq: FSBC) (“Five Star” or the “Company”), a holding company that operates through its wholly owned banking subsidiary, Five Star Bank (the “Bank”), today reported net income of $13.1 million for the three months ended March 31, 2025, as compared to $13.3 million for the three months ended December 31, 2024 and $10.6 million for the three months ended March 31, 2024.

    First Quarter Highlights

    Performance and operating highlights for the Company for the periods noted below included the following:

      Three months ended
    (in thousands, except per share and share data) March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Return on average assets (“ROAA”)   1.30 %     1.31 %     1.22 %
    Return on average equity (“ROAE”)   13.28 %     13.48 %     14.84 %
    Pre-tax income $ 18,391     $ 19,367     $ 14,961  
    Pre-tax, pre-provision income(1) $ 20,291     $ 20,667     $ 15,861  
    Net income $ 13,111     $ 13,317     $ 10,631  
    Basic earnings per common share $ 0.62     $ 0.63     $ 0.62  
    Diluted earnings per common share $ 0.62     $ 0.63     $ 0.62  
    Weighted average basic common shares outstanding   21,209,881       21,182,143       17,190,867  
    Weighted average diluted common shares outstanding   21,253,588       21,235,318       17,272,994  
    Shares outstanding at end of period   21,329,235       21,319,083       17,353,251  
                           
    (1) See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.
                           

    James E. Beckwith, President and Chief Executive Officer, commented:

    “The strength of Five Star Bank’s first quarter 2025 financial results is emblematic of a reputation built on an unwavering commitment to customers and community partners who rely on our speed to serve and certainty of execution for their own successes. This differentiated customer experience has created great demand for our services and seized market opportunities in San Francisco. As we continue to grow our presence, we now have 31 San Francisco Bay Area employees. As of March 31, 2025 our San Francisco Bay Area operations had $379.8 million in total deposits.

    At the Company level, total loans held for investment increased by $89.1 million, or 2.52% (10.09% when annualized). Total deposits increased by $178.4 million, or 5.01% (20.05% when annualized), with wholesale deposits increasing by $130.0 million, or 23.21%, and non-wholesale deposits increasing by $48.4 million, or 1.61%. Short-term borrowings remained at zero as of March 31, 2025 and December 31, 2024. Net interest margin increased by nine basis points to 3.45% and our efficiency ratio increased to 42.58%, as compared to 41.21% for the fourth quarter of 2024, while cost of funds decreased nine basis points to 2.56%.

    In the first quarter of 2025, we were pleased to declare another cash dividend of $0.20 per share. We were also pleased to have been ranked third among best-performing banks in the nation by S&P Global Market Intelligence (among banks with assets between $3 billion and $10 billion).

    As we execute on the expansion of industry verticals and our presence in new geographies to meet customer demand, we expect the ongoing acceleration of our growth to benefit our customers, employees, and shareholders. We also expect our demonstrated ability to adapt to changing economic conditions to serve us well into the future as we remain vigilant and focused on disciplined business practices. We thank our employees for their outstanding commitment to ensuring Five Star Bank remains a safe, trusted, and steadfast banking partner.”

    Financial highlights during the quarter included the following:

    • The San Francisco Bay Area team increased from 27 to 31 employees who generated deposit balances totaling $379.8 million at March 31, 2025, an increase of $87.4 million from December 31, 2024.
    • Cash and cash equivalents were $452.6 million, representing 12.11% of total deposits at March 31, 2025, as compared to 9.90% at December 31, 2024.
    • Total deposits increased by $178.4 million, or 5.01%, during the three months ended March 31, 2025, due to increases in both non-wholesale and wholesale deposits, which the Company defines as brokered deposits and California Time Deposit Program deposits. During the three months ended March 31, 2025, non-wholesale deposits increased by $48.4 million, or 1.61%, and wholesale deposits increased by $130.0 million, or 23.21%.
    • The Company had no short-term borrowings at March 31, 2025 or December 31, 2024.
    • Consistent, disciplined management of expenses contributed to our efficiency ratio of 42.58% for the three months ended March 31, 2025, as compared to 41.21% for the three months ended December 31, 2024.
    • For the three months ended March 31, 2025, net interest margin was 3.45%, as compared to 3.36% for the three months ended December 31, 2024 and 3.14% for the three months ended March 31, 2024. The effective Federal Funds rate was 4.33% as of March 31, 2025, remaining constant from December 31, 2024 and decreasing from 5.33% at March 31, 2024.
    • Other comprehensive income was $0.7 million during the three months ended March 31, 2025. Unrealized losses, net of tax effect, on available-for-sale securities were $11.6 million as of March 31, 2025. Total carrying value of held-to-maturity and available-for-sale securities represented 0.06% and 2.35% of total interest-earning assets, respectively, as of March 31, 2025.
    • The Company’s common equity Tier 1 capital ratio was 11.00% and 11.02% as of March 31, 2025 and December 31, 2024, respectively. The Bank continues to meet all requirements to be considered “well-capitalized” under applicable regulatory guidelines.
    • Loan and deposit growth in the three and twelve months ended March 31, 2025 was as follows:
      (in thousands) March 31,
    2025    		   December 31,
    2024    		   $ Change   % Change
      Loans held for investment $ 3,621,819   $ 3,532,686   $ 89,133   2.52 %
      Non-interest-bearing deposits   933,652     922,629     11,023   1.19 %
      Interest-bearing deposits   2,802,702     2,635,365     167,337   6.35 %
                     
      (in thousands) March 31,
    2025    		   March 31,
    2024    		   $ Change   % Change
      Loans held for investment $ 3,621,819   $ 3,104,130   $ 517,689   16.68 %
      Non-interest-bearing deposits   933,652     817,388     116,264   14.22 %
      Interest-bearing deposits   2,802,702     2,138,384     664,318   31.07 %
                             
    • The ratio of nonperforming loans to loans held for investment at period end remained at 0.05% from December 31, 2024 to March 31, 2025.
    • The Company’s Board of Directors declared on January 16, 2025, and the Company subsequently paid, a cash dividend of $0.20 per share during the three months ended March 31, 2025. The Company’s Board of Directors subsequently declared another cash dividend of $0.20 per share on April 17, 2025, which the Company expects to pay on May 12, 2025 to shareholders of record as of May 5, 2025.

    Summary Results

    Three months ended March 31, 2025, as compared to three months ended December 31, 2024

    The Company’s net income was $13.1 million for the three months ended March 31, 2025, as compared to $13.3 million for the three months ended December 31, 2024. Net interest income increased by $0.5 million, primarily due to a decrease in interest expense due to lower average rates on deposits, partially offset by a decrease in interest income driven by lower balances and yields on interest-earning deposits in banks, as compared to the three months ended December 31, 2024. The provision for credit losses increased by $0.6 million, reflecting adjustments to expectations for credit losses based on economic trends and forecasts in the three months ended March 31, 2025 compared to the three months ended December 31, 2024. Non-interest income decreased by $0.3 million, primarily due to a reduction in income received on equity investments in venture-backed funds during the three months ended March 31, 2025, as compared to the three months ended December 31, 2024. Non-interest expense increased by $0.6 million, primarily related to an increase in salaries and employee benefits, partially offset by decreases in advertising, promotional, and other operating expenses during the three months ended March 31, 2025, as compared to the three months ended December 31, 2024.

    Three months ended March 31, 2025, as compared to three months ended March 31, 2024

    The Company’s net income was $13.1 million for the three months ended March 31, 2025, as compared to $10.6 million for the three months ended March 31, 2024. Net interest income increased by $7.2 million, primarily due to an increase in interest income driven by a higher balance of loans with higher yields, partially offset by an increase in interest expense due to larger average deposit balances, as compared to the three months ended March 31, 2024. The provision for credit losses increased by $1.0 million, relating to loan growth and adjustments to expectations for credit losses based on economic trends and forecasts during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. Non-interest income decreased by $0.5 million, primarily due to a reduction in income received on equity investments in venture-backed funds during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024. Non-interest expense increased by $2.3 million during the three months ended March 31, 2025, as compared to the three months ended March 31, 2024, with an increase in salaries and employee benefits related to increased headcount as the leading driver.

    The following is a summary of the components of the Company’s operating results and performance ratios for the periods indicated:

        Three months ended        
    (in thousands, except per share data)   March 31,
    2025    		   December 31,
    2024    		   $ Change   % Change
    Selected operating data:                
    Net interest income   $ 33,977     $ 33,489     $ 488     1.46 %
    Provision for credit losses     1,900       1,300       600     46.15 %
    Non-interest income     1,359       1,666       (307 )   (18.43 )%
    Non-interest expense     15,045       14,488       557     3.84 %
    Pre-tax income     18,391       19,367       (976 )   (5.04 )%
    Provision for income taxes     5,280       6,050       (770 )   (12.73 )%
    Net income   $ 13,111     $ 13,317     $ (206 )   (1.55 )%
    Earnings per common share:                
    Basic   $ 0.62     $ 0.63     $ (0.01 )   (1.59 )%
    Diluted   $ 0.62     $ 0.63     $ (0.01 )   (1.59 )%
    Performance and other financial ratios:                
    ROAA     1.30 %     1.31 %        
    ROAE     13.28 %     13.48 %        
    Net interest margin     3.45 %     3.36 %        
    Cost of funds     2.56 %     2.65 %        
    Efficiency ratio     42.58 %     41.21 %        
                     
        Three months ended        
    (in thousands, except per share data)   March 31,
    2025    		   March 31,
    2024    		   $ Change   % Change
    Selected operating data:                
    Net interest income   $ 33,977     $ 26,744     $ 7,233     27.05 %
    Provision for credit losses     1,900       900       1,000     111.11 %
    Non-interest income     1,359       1,833       (474 )   (25.86 )%
    Non-interest expense     15,045       12,716       2,329     18.32 %
    Pre-tax income     18,391       14,961       3,430     22.93 %
    Provision for income taxes     5,280       4,330       950     21.94 %
    Net income   $ 13,111     $ 10,631     $ 2,480     23.33 %
    Earnings per common share:                
    Basic   $ 0.62     $ 0.62     $ —     — %
    Diluted   $ 0.62     $ 0.62     $ —     — %
    Performance and other financial ratios:                
    ROAA     1.30 %     1.22 %        
    ROAE     13.28 %     14.84 %        
    Net interest margin     3.45 %     3.14 %        
    Cost of funds     2.56 %     2.62 %        
    Efficiency ratio     42.58 %     44.50 %        
                             

    Balance Sheet Summary

    (in thousands)   March 31,
    2025    		   December 31,
    2024    		   $ Change   % Change
    Selected financial condition data:                
    Total assets   $ 4,245,057   $ 4,053,278   $ 191,779     4.73 %
    Cash and cash equivalents     452,571     352,343     100,228     28.45 %
    Total loans held for investment     3,621,819     3,532,686     89,133     2.52 %
    Total investments     99,696     100,914     (1,218 )   (1.21 )%
    Total liabilities     3,838,606     3,656,654     181,952     4.98 %
    Total deposits     3,736,354     3,557,994     178,360     5.01 %
    Subordinated notes, net     73,932     73,895     37     0.05 %
    Total shareholders’ equity     406,451     396,624     9,827     2.48 %
                               
    • Insured and collateralized deposits were approximately $2.5 billion, representing 67.55% of total deposits as of March 31, 2025, as compared to 66.92% as of December 31, 2024. Net uninsured and uncollateralized deposits were approximately $1.2 billion as of March 31, 2025, remaining constant from December 31, 2024.
    • Non-wholesale deposit accounts constituted 81.53% of total deposits as of March 31, 2025, as compared to 84.26% at December 31, 2024. Deposit relationships of greater than $5 million represented 60.87% of total deposits, as compared to 61.13% as of December 31, 2024, and had an average age of approximately 8.80 years as of March 31, 2025, as compared to 9.28 years as of December 31, 2024.
    • Cash and cash equivalents as of March 31, 2025 were $452.6 million, representing 12.11% of total deposits at March 31, 2025, as compared to 9.90% as of December 31, 2024.
    • Total liquidity (consisting of cash and cash equivalents and unused and immediately available borrowing capacity as set forth below) was approximately $2.0 billion as of March 31, 2025, as compared to $1.9 billion at December 31, 2024.
          March 31, 2025
      (in thousands)   Line of Credit   Letters of Credit Issued   Borrowings   Available
      Federal Home Loan Bank of San Francisco (“FHLB”) advances   $ 1,276,072   $ 731,500   $ —   $ 544,572
      Federal Reserve Discount Window     856,366     —     —     856,366
      Correspondent bank lines of credit     175,000     —     —     175,000
      Cash and cash equivalents     —     —     —     452,571
      Total   $ 2,307,438   $ 731,500   $ —   $ 2,028,509
                               

    The increase in total assets from December 31, 2024 to March 31, 2025 was primarily due to a $100.2 million increase in cash and cash equivalents and an $89.1 million increase in total loans held for investment. The $100.2 million increase in cash and cash equivalents primarily resulted from net cash inflows related to financing and operating activities of $174.1 million and $15.5 million, respectively, partially offset by net cash outflows related to investing activities of $89.3 million. The $89.1 million increase in total loans held for investment between December 31, 2024 and March 31, 2025 was a result of $259.3 million in loan originations and advances, partially offset by $65.6 million and $104.6 million in loan payoffs and paydowns, respectively. The $89.1 million increase in total loans held for investment included $19.8 million in purchases of loans within the consumer concentration of the loan portfolio.

    The increase in total liabilities from December 31, 2024 to March 31, 2025 was primarily due to an increase in interest-bearing deposits of $167.3 million. The increase in interest-bearing deposits was largely due to increases in time and money market deposits of $131.2 million and $52.2 million, respectively.

    The increase in total shareholders’ equity from December 31, 2024 to March 31, 2025 was primarily a result of net income recognized of $13.1 million and a $0.7 million increase in accumulated other comprehensive income, partially offset by $4.3 million in cash dividends paid during the period.

    Net Interest Income and Net Interest Margin

    The following is a summary of the components of net interest income for the periods indicated:

        Three months ended        
    (in thousands)   March 31,
    2025    		   December 31,
    2024    		   $ Change   % Change
    Interest and fee income   $ 57,087     $ 57,745     $ (658 )   (1.14 )%
    Interest expense     23,110       24,256       (1,146 )   (4.72 )%
    Net interest income   $ 33,977     $ 33,489     $ 488     1.46 %
    Net interest margin     3.45 %     3.36 %        
                     
        Three months ended        
    (in thousands)   March 31,
    2025    		   March 31,
    2024    		   $ Change   % Change
    Interest and fee income   $ 57,087     $ 47,541     $ 9,546     20.08 %
    Interest expense     23,110       20,797       2,313     11.12 %
    Net interest income   $ 33,977     $ 26,744     $ 7,233     27.05 %
    Net interest margin     3.45 %     3.14 %        

    The following table shows the components of net interest income and net interest margin for the quarterly periods indicated:

        Three months ended
        March 31, 2025   December 31, 2024   March 31, 2024
    (in thousands)   Average
    Balance    		   Interest
    Income/
    Expense    		   Yield/
    Rate    		   Average
    Balance    		   Interest
    Income/
    Expense    		   Yield/
    Rate    		   Average
    Balance    		   Interest
    Income/
    Expense    		   Yield/
    Rate
    Assets                                    
    Interest-earning deposits in banks   $ 328,571   $ 3,575   4.41 %   $ 363,828   $ 4,335   4.74 %   $ 233,002   $ 3,102   5.35 %
    Investment securities     100,474     581   2.34 %     103,930     607   2.33 %     109,177     653   2.41 %
    Loans held for investment and sale     3,567,992     52,931   6.02 %     3,498,109     52,803   6.01 %     3,082,290     43,786   5.71 %
    Total interest-earning assets     3,997,037     57,087   5.79 %     3,965,867     57,745   5.79 %     3,424,469     47,541   5.58 %
    Interest receivable and other assets, net     93,543             91,736             93,983        
    Total assets   $ 4,090,580           $ 4,057,603           $ 3,518,452        
                                         
    Liabilities and shareholders’ equity                                    
    Interest-bearing transaction accounts   $ 303,822   $ 1,112   1.48 %   $ 298,518   $ 1,249   1.66 %   $ 300,325   $ 1,126   1.51 %
    Savings accounts     123,599     772   2.53 %     127,298     887   2.77 %     124,561     861   2.78 %
    Money market accounts     1,540,879     12,435   3.27 %     1,596,116     13,520   3.37 %     1,410,264     12,155   3.47 %
    Time accounts     706,528     7,629   4.38 %     617,596     7,438   4.79 %     429,586     5,369   5.03 %
    Subordinated notes and other borrowings     73,908     1,162   6.37 %     73,872     1,162   6.25 %     82,775     1,286   6.25 %
    Total interest-bearing liabilities     2,748,736     23,110   3.41 %     2,713,400     24,256   3.56 %     2,347,511     20,797   3.56 %
    Demand accounts     910,954             921,881             842,105        
    Interest payable and other liabilities     30,389             29,234             40,730        
    Shareholders’ equity     400,501             393,088             288,106        
    Total liabilities & shareholders’ equity   $ 4,090,580           $ 4,057,603           $ 3,518,452        
                                         
    Net interest spread           2.38 %           2.23 %           2.02 %
    Net interest income/margin       $ 33,977   3.45 %       $ 33,489   3.36 %       $ 26,744   3.14 %

    Net interest income during the three months ended March 31, 2025 increased $0.5 million, or 1.46%, to $34.0 million compared to $33.5 million during the three months ended December 31, 2024. Net interest margin totaled 3.45% for the three months ended March 31, 2025, an increase of nine basis points compared to the prior quarter. The increase in net interest income is primarily attributable to a $1.1 million decrease in interest expense, driven by a 15 basis point decrease in the average rate on interest-bearing deposits compared to the prior quarter. The decrease in interest expense was partially offset by a $0.7 million decrease in interest income, primarily due to a $35.3 million, or 9.69%, decrease in the average balance of interest-earning deposits in banks, combined with a 33 basis point decrease in the average yield on interest-earning deposits in banks.

    As compared to the three months ended March 31, 2024, net interest income increased $7.2 million, or 27.05%, to $34.0 million from $26.7 million. Net interest margin totaled 3.45% for the three months ended March 31, 2025, an increase of 31 basis points compared to the same quarter of the prior year. The increase in net interest income is primarily attributable to an additional $9.1 million in loan interest income due to a $485.7 million, or 15.76%, increase in the average balance of loans and a 31 basis point improvement in the average yield on loans during the three months ended March 31, 2025 compared to the same quarter of the prior year. The increase in interest income was partially offset by a $2.4 million increase in deposit interest expense compared to the same quarter of the prior year. The increase in deposit interest expense is primarily attributable to a $478.9 million, or 15.42%, increase in the average balance of deposits and a five basis point increase in the average cost of deposits during the three months ended March 31, 2025 compared to the same quarter of the prior year.

    Loans by Type

    The following table provides loan balances, excluding deferred loan fees, by type as of March 31, 2025:

    (in thousands)    
    Real estate:    
    Commercial   $ 2,941,201  
    Commercial land and development     3,556  
    Commercial construction     113,002  
    Residential construction     5,747  
    Residential     34,053  
    Farmland     43,643  
    Commercial:    
    Secured     170,525  
    Unsecured     34,970  
    Consumer and other     277,093  
    Net deferred loan fees     (1,971 )
    Total loans held for investment   $ 3,621,819  


    Interest-bearing Deposits

    The following table provides interest-bearing deposit balances by type as of March 31, 2025:

    (in thousands)    
    Interest-bearing transaction accounts   $ 295,633  
    Money market accounts     1,577,473  
    Savings accounts     128,210  
    Time accounts     801,386  
    Total interest-bearing deposits   $ 2,802,702  


    Asset Quality

    Allowance for Credit Losses

    At March 31, 2025, the Company’s allowance for credit losses was $39.2 million, as compared to $37.8 million at December 31, 2024. The $1.4 million increase in the allowance is due to a $2.2 million provision for credit losses recorded during the three months ended March 31, 2025, partially offset by net charge-offs mainly attributable to commercial and industrial loans of $0.7 million, during the same period.

    The Company’s ratio of nonperforming loans to loans held for investment remained at 0.05% from December 31, 2024 to March 31, 2025. Loans designated as watch decreased from $123.4 million to $112.0 million between December 31, 2024 and March 31, 2025. Loans designated as substandard increased from $2.6 million to $3.7 million between December 31, 2024 and March 31, 2025. There were no loans with doubtful risk grades at March 31, 2025 or December 31, 2024.

    A summary of the allowance for credit losses by loan class is as follows:

        March 31, 2025   December 31, 2024
    (in thousands)   Amount   % of Total   Amount   % of Total
    Real estate:                
    Commercial   $ 27,027   68.91 %   $ 25,864   68.44 %
    Commercial land and development     70   0.18 %     78   0.21 %
    Commercial construction     2,227   5.68 %     2,268   6.00 %
    Residential construction     78   0.20 %     64   0.17 %
    Residential     279   0.71 %     270   0.71 %
    Farmland     598   1.52 %     607   1.61 %
          30,279   77.20 %     29,151   77.14 %
    Commercial:                
    Secured     5,905   15.05 %     5,866   15.52 %
    Unsecured     403   1.03 %     278   0.74 %
          6,308   16.08 %     6,144   16.26 %
    Consumer and other     2,637   6.72 %     2,496   6.60 %
    Total allowance for credit losses   $ 39,224   100.00 %   $ 37,791   100.00 %

    The ratio of allowance for credit losses to loans held for investment was 1.08% at March 31, 2025, as compared to 1.07% at December 31, 2024.

    Non-interest Income

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

        Three months ended        
    (in thousands)   March 31,
    2025    		   December 31,
    2024    		   $ Change   % Change
    Service charges on deposit accounts   $ 215   $ 179   $ 36     20.11 %
    Gain on sale of loans     125     150     (25 )   (16.67 )%
    Loan-related fees     448     400     48     12.00 %
    FHLB stock dividends     331     332     (1 )   (0.30 )%
    Earnings on bank-owned life insurance     161     182     (21 )   (11.54 )%
    Other income     79     423     (344 )   (81.32 )%
    Total non-interest income   $ 1,359   $ 1,666   $ (307 )   (18.43 )%


    Service charges on deposit accounts.     The increase resulted primarily from individually immaterial increases in fees earned for services and products to support deposit accounts including, but not limited to, service charges, check order fees, and debit card income.

    Gain on sale of loans. The decrease resulted from a decline in the volume and effective yield of loans sold. During the three months ended March 31, 2025, approximately $1.7 million of loans were sold with an effective yield of 7.24%, as compared to approximately $2.0 million of loans sold with an effective yield of 7.60% during the three months ended December 31, 2024.

    Other income. The decrease resulted primarily from $0.3 million of income received on equity investments in venture-backed funds during the three months ended December 31, 2024 which did not reoccur during the three months ended March 31, 2025.

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

        Three months ended      
    (in thousands)   March 31,
    2025    		   March 31,
    2024    		   $ Change   % Change
    Service charges on deposit accounts   $ 215   $ 188   $ 27     14.36 %
    Gain on sale of loans     125     369     (244 )   (66.12 )%
    Loan-related fees     448     429     19     4.43 %
    FHLB stock dividends     331     332     (1 )   (0.30 )%
    Earnings on bank-owned life insurance     161     142     19     13.38 %
    Other income     79     373     (294 )   (78.82 )%
    Total non-interest income   $ 1,359   $ 1,833   $ (474 )   (25.86 )%


    Gain on sale of loans.     The decrease related primarily to an overall decline in the volume of loans sold, partially offset by an improvement in the effective yield of loans sold. During the three months ended March 31, 2025, approximately $1.7 million of loans were sold with an effective yield of 7.24%, as compared to approximately $5.2 million of loans sold with an effective yield of 7.08% during the three months ended March 31, 2024.

    Other income. The decrease related primarily to $0.3 million of income received on equity investments in venture-backed funds during the three months ended March 31, 2024, which did not reoccur during the three months ended March 31, 2025.

    Non-interest Expense

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

        Three months ended        
    (in thousands)   March 31,
    2025    		   December 31,
    2024    		   $ Change   % Change
    Salaries and employee benefits   $ 9,134   $ 8,360   $ 774     9.26 %
    Occupancy and equipment     637     649     (12 )   (1.85 )%
    Data processing and software     1,457     1,369     88     6.43 %
    Federal Deposit Insurance Corporation (“FDIC”) insurance     455     440     15     3.41 %
    Professional services     913     774     139     17.96 %
    Advertising and promotional     522     752     (230 )   (30.59 )%
    Loan-related expenses     319     321     (2 )   (0.62 )%
    Other operating expenses     1,608     1,823     (215 )   (11.79 )%
    Total non-interest expense   $ 15,045   $ 14,488   $ 557     3.84 %


    Salaries and employee benefits.     The increase related primarily to: (i) a $0.9 million increase in salaries, benefits, and bonus expense; and (ii) a $0.3 million decrease in loan origination costs due to fewer loan originations, net of purchased consumer loans. The increase was partially offset by a $0.5 million decrease in commissions expense due to fewer loan originations, net of purchased consumer loans, period-over-period.

    Professional services. The increase was primarily due to $0.1 million in fees paid for compensation consulting services, which did not occur in the three months ended December 31, 2024.

    Advertising and promotional. The decrease related primarily to a $0.1 million decrease in expenses related to sponsored events and partnerships and $0.1 million decrease related to business development expenses.

    Other operating expenses. The decrease was primarily due to a $0.1 million decrease in director expenses, such as conferences and meetings, combined with individually immaterial decreases in expenses related to operations, including administrative and operational expenses.

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

        Three months ended        
    (in thousands)   March 31,
    2025    		   March 31,
    2024    		   $ Change   % Change
    Salaries and employee benefits   $ 9,134   $ 7,577   $ 1,557   20.55 %
    Occupancy and equipment     637     626     11   1.76 %
    Data processing and software     1,457     1,157     300   25.93 %
    FDIC insurance     455     400     55   13.75 %
    Professional services     913     707     206   29.14 %
    Advertising and promotional     522     460     62   13.48 %
    Loan-related expenses     319     297     22   7.41 %
    Other operating expenses     1,608     1,492     116   7.77 %
    Total non-interest expense   $ 15,045   $ 12,716   $ 2,329   18.32 %


    Salaries and employee benefits.     The increase related primarily to: (i) a $1.6 million increase in salaries, benefits, and bonus expense, mainly related to a 13.19% increase in headcount between March 31, 2024 and March 31, 2025; and (ii) a $0.1 million increase in commissions paid. This increase was partially offset by a $0.2 million increase in loan origination costs due to a greater number of loan originations, net of purchased consumer loans, period-over-period.

    Data processing and software. The increase was primarily due to: (i) increased usage of our digital banking platform; (ii) higher transaction volumes related to the increased number of loan and deposit accounts; and (iii) an increased number of licenses required for new users on our loan origination and documentation system.

    Professional services. The increase was primarily due to $0.1 million in fees paid for compensation consulting services and $0.1 million in consulting services relating to operations in San Francisco, neither of which occurred in the three months ended March 31, 2024.

    Other operating expenses. The increase was primarily due to individually immaterial increases in expenses related to operations, including administrative and operational expenses such as travel, subscriptions, and professional association memberships.

    Provision for Income Taxes

    Three months ended March 31, 2025, as compared to three months ended December 31, 2024

    Provision for income taxes decreased to $5.3 million for the three months ended March 31, 2025 from $6.1 million for the three months ended December 31, 2024, which was primarily due to: (i) a slight decline in taxable income recognized during the three months ended March 31, 2025; and (ii) a $0.6 million provision to return true-up recorded during the three months ended December 31, 2024 related primarily to the timing of recognition of low income housing tax credits, which did not reoccur during the three months ended March 31, 2025. The effective tax rates were 28.71% and 31.24% for the three months ended March 31, 2025 and December 31, 2024, respectively.

    Three months ended March 31, 2025, as compared to three months ended March 31, 2024

    Provision for income taxes increased by $1.0 million, or 21.94%, for the three months ended March 31, 2025 compared to the three months ended March 31, 2024. This increase was primarily driven by an increase in taxable income. The effective tax rates were 28.71% and 28.94% for the three months ended March 31, 2025 and March 31, 2024, respectively.

    Webcast Details

    Five Star Bancorp will host a live webcast for analysts and investors on Tuesday, April 29, 2025 at 1:00 PM ET (10:00 AM PT) to discuss its first quarter financial results. To view the live webcast, visit the “News & Events” section of the Company’s website under “Events” at https://investors.fivestarbank.com/news-events/events. The webcast will be archived on the Company’s website for a period of 90 days.

    About Five Star Bancorp

    Five Star is a bank holding company headquartered in Rancho Cordova, California. Five Star operates through its wholly owned banking subsidiary, Five Star Bank. The Bank has eight branches in Northern California.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company’s beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. The Company cautions that the forward-looking statements are based largely on the Company’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company’s control) and are subject to risks and uncertainties, which change over time, and other factors, which could cause actual results to differ materially from those currently anticipated. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. If one or more of the factors affecting the Company’s forward-looking information and statements proves incorrect, then the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, the Company cautions you not to place undue reliance on the Company’s forward-looking information and statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 under the section entitled “Risk Factors,” and other documents filed by the Company with the Securities and Exchange Commission from time to time.

    The Company disclaims any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.

    Condensed Financial Data (Unaudited)

        Three months ended
    (in thousands, except per share and share data)   March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Revenue and Expense Data            
    Interest and fee income   $ 57,087     $ 57,745     $ 47,541  
    Interest expense     23,110       24,256       20,797  
    Net interest income     33,977       33,489       26,744  
    Provision for credit losses     1,900       1,300       900  
    Net interest income after provision     32,077       32,189       25,844  
    Non-interest income:            
    Service charges on deposit accounts     215       179       188  
    Gain on sale of loans     125       150       369  
    Loan-related fees     448       400       429  
    FHLB stock dividends     331       332       332  
    Earnings on bank-owned life insurance     161       182       142  
    Other income     79       423       373  
    Total non-interest income     1,359       1,666       1,833  
    Non-interest expense:            
    Salaries and employee benefits     9,134       8,360       7,577  
    Occupancy and equipment     637       649       626  
    Data processing and software     1,457       1,369       1,157  
    FDIC insurance     455       440       400  
    Professional services     913       774       707  
    Advertising and promotional     522       752       460  
    Loan-related expenses     319       321       297  
    Other operating expenses     1,608       1,823       1,492  
    Total non-interest expense     15,045       14,488       12,716  
    Income before provision for income taxes     18,391       19,367       14,961  
    Provision for income taxes     5,280       6,050       4,330  
    Net income   $ 13,111     $ 13,317     $ 10,631  
                 
    Comprehensive Income            
    Net income   $ 13,111     $ 13,317     $ 10,631  
    Net unrealized holding gain (loss) on securities available-for-sale during the period     1,030       (3,747 )     (955 )
    Less: Income tax expense (benefit) related to other comprehensive income (loss)     305       (1,108 )     (282 )
    Other comprehensive income (loss)     725       (2,639 )     (673 )
    Total comprehensive income   $ 13,836     $ 10,678     $ 9,958  
                 
    Share and Per Share Data            
    Earnings per common share:            
    Basic   $ 0.62     $ 0.63     $ 0.62  
    Diluted     0.62       0.63       0.62  
    Book value per share     19.06       18.60       16.86  
    Tangible book value per share(1)     19.06       18.60       16.86  
    Weighted average basic common shares outstanding     21,209,881       21,182,143       17,190,867  
    Weighted average diluted common shares outstanding     21,253,588       21,235,318       17,272,994  
    Shares outstanding at end of period     21,329,235       21,319,083       17,353,251  
                 
    Selected Financial Ratios            
    ROAA     1.30 %     1.31 %     1.22 %
    ROAE     13.28 %     13.48 %     14.84 %
    Net interest margin     3.45 %     3.36 %     3.14 %
    Loan to deposit(2)     97.01 %     99.38 %     105.37 %

    (1) See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.
    (2) Loan balance in loan to deposit ratio is total loans held for investment and sale at period end. Deposit balance in loan to deposit ratio is total deposits at period end.

    (in thousands)   March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Balance Sheet Data            
    Cash and due from financial institutions   $ 42,473     $ 33,882     $ 29,750  
    Interest-bearing deposits in banks     410,098       318,461       155,575  
    Time deposits in banks     4,024       4,121       5,878  
    Securities – available-for-sale, at fair value     97,111       98,194       105,006  
    Securities – held-to-maturity, at amortized cost     2,585       2,720       3,000  
    Loans held for sale     2,669       3,247       10,243  
    Loans held for investment     3,621,819       3,532,686       3,104,130  
    Allowance for credit losses     (39,224 )     (37,791 )     (34,653 )
    Loans held for investment, net of allowance for credit losses     3,582,595       3,494,895       3,069,477  
    FHLB stock     15,000       15,000       15,000  
    Operating leases, right-of-use asset     5,944       6,245       6,932  
    Premises and equipment, net     1,524       1,584       1,569  
    Bank-owned life insurance     23,246       19,375       18,872  
    Interest receivable and other assets     57,788       55,554       55,058  
    Total assets   $ 4,245,057     $ 4,053,278     $ 3,476,360  
                 
    Non-interest-bearing deposits   $ 933,652     $ 922,629     $ 817,388  
    Interest-bearing deposits     2,802,702       2,635,365       2,138,384  
    Total deposits     3,736,354       3,557,994       2,955,772  
    Subordinated notes, net     73,932       73,895       73,786  
    Other borrowings     —       —       120,000  
    Operating lease liability     6,591       6,857       7,320  
    Interest payable and other liabilities     21,729       17,908       26,902  
    Total liabilities     3,838,606       3,656,654       3,183,780  
                 
    Common stock     302,788       302,531       220,804  
    Retained earnings     115,309       106,464       84,216  
    Accumulated other comprehensive loss, net of taxes     (11,646 )     (12,371 )     (12,440 )
    Total shareholders’ equity     406,451       396,624       292,580  
    Total liabilities and shareholders’ equity   $ 4,245,057     $ 4,053,278     $ 3,476,360  
                 
    Quarterly Average Balance Data            
    Average loans held for investment and sale   $ 3,567,992     $ 3,498,109     $ 3,082,290  
    Average interest-earning assets     3,997,037       3,965,867       3,424,469  
    Average total assets     4,090,580       4,057,603       3,518,452  
    Average deposits     3,585,782       3,561,409       3,106,841  
    Average total equity     400,501       393,088       288,106  
                 
    Credit Quality            
    Allowance for credit losses to nonperforming loans     2,222.32 %     2,101.78 %     1,806.73 %
    Nonperforming loans to loans held for investment     0.05 %     0.05 %     0.06 %
    Nonperforming assets to total assets     0.04 %     0.05 %     0.06 %
    Nonperforming loans plus performing loan modifications to loans held for investment     0.05 %     0.05 %     0.06 %
                 
    Capital Ratios            
    Total shareholders’ equity to total assets     9.57 %     9.79 %     8.42 %
    Tangible shareholders’ equity to tangible assets(1)     9.57 %     9.79 %     8.42 %
    Total capital (to risk-weighted assets)     13.97 %     13.99 %     12.34 %
    Tier 1 capital (to risk-weighted assets)     11.00 %     11.02 %     9.13 %
    Common equity Tier 1 capital (to risk-weighted assets)     11.00 %     11.02 %     9.13 %
    Tier 1 leverage ratio     10.17 %     10.05 %     8.63 %

    (1) See the section entitled “Non-GAAP Reconciliation (Unaudited)” for a reconciliation of this non-GAAP financial measure.

    Non-GAAP Reconciliation (Unaudited)

    The Company uses financial information in its analysis of the Company’s performance that is not in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company believes that these non-GAAP financial measures provide useful information to management and investors that is supplementary to the Company’s financial condition, results of operations, and cash flows computed in accordance with GAAP. However, the Company acknowledges that its non-GAAP financial measures have a number of limitations. As such, investors should not view these disclosures as a substitute for results determined in accordance with GAAP. Additionally, these non-GAAP measures are not necessarily comparable to non-GAAP financial measures that other banking companies use. Other banking companies may use names similar to those the Company uses for the non-GAAP financial measures the Company discloses, but may calculate them differently. Investors should understand how the Company and other companies each calculate their non-GAAP financial measures when making comparisons.

    Tangible shareholders’ equity to tangible assets is defined as total equity less goodwill and other intangible assets, divided by total assets less goodwill and other intangible assets. The most directly comparable GAAP financial measure is total shareholders’ equity to total assets. Management believes that tangible shareholders’ equity to tangible assets is a useful financial measure because it enables management, investors, and others to assess the Company’s financial health based on tangible capital. We had no goodwill or other intangible assets at the end of any period indicated. As a result, tangible shareholders’ equity to tangible assets is the same as total shareholders’ equity to total assets at the end of each of the periods indicated.

    Tangible book value per share is defined as total shareholders’ equity less goodwill and other intangible assets, divided by the outstanding number of common shares at the end of the period. The most directly comparable GAAP financial measure is book value per share. Management believes that tangible book value per share is a useful financial measure because it enables management, investors, and others to assess the Company’s value and use of equity. We had no goodwill or other intangible assets at the end of any period indicated. As a result, tangible book value per share is the same as book value per share at the end of each of the periods indicated.

    Pre-tax, pre-provision income is defined as pre-tax income plus provision for credit losses. The most directly comparable GAAP financial measure is pre-tax income. Management believes that pre-tax, pre-provision income is a useful financial measure because it enables management, investors, and others to assess the Company’s ability to generate operating profit and capital.

    The following reconciliation table provides a more detailed analysis of this non-GAAP financial measure:

        Three months ended
    (in thousands)   March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024
    Pre-tax, pre-provision income            
    Pre-tax income   $ 18,391   $ 19,367   $ 14,961
    Add: provision for credit losses     1,900     1,300     900
    Pre-tax, pre-provision income   $ 20,291   $ 20,667   $ 15,861

    Investor Contact:
    Heather C. Luck, Chief Financial Officer
    Five Star Bancorp
    (916) 626-5008
    hluck@fivestarbank.com

    Media Contact:
    Shelley R. Wetton, Chief Marketing Officer
    Five Star Bancorp
    (916) 284-7827
    swetton@fivestarbank.com

    The MIL Network –

  • MIL-OSI USA News: Fact Sheet: President Donald J. Trump Enforces Commonsense Rules of the Road for America’s Truck Drivers

    Source: The White House

    ENFORCING ENGLISH PROFICIENCY FOR SAFETY: Today, President Donald J. Trump signed an Executive Order to keep American families safe on the road by ensuring anyone behind the wheel of a commercial vehicle is properly qualified and proficient in English.

    • The Order directs the Secretary of Transportation to rescind guidance that watered down the law requiring English proficiency for commercial drivers.
    • It mandates revising out-of-service criteria to ensure drivers violating English proficiency rules are placed out-of-service, enhancing roadway safety.
    • It instructs the Secretary of Transportation to review state issuance of non-domiciled commercial driver’s licenses to identify any irregularities and ensure American drivers are validly licensed and qualified.
    • The Order directs the Secretary of Transportation to carry out additional administrative, regulatory, or enforcement actions to improve the working conditions of America’s truck drivers.

    SUPPORTING AMERICA’S TRUCK DRIVERS: President Trump recognizes that America’s truck drivers are essential to the strength of our economy, the security of our Nation, and the livelihoods of the American people.

    • President Trump believes that English is a non-negotiable safety requirement for professional drivers, as they should be able to read and understand traffic signs; communicate with traffic safety officers, border patrol, agricultural checkpoints, and cargo weight-limit station personnel; and provide and receive feedback and directions in English.
    • Federal law mandates that commercial vehicle drivers read and speak English sufficiently, yet this requirement has not been enforced pursuant to Obama Administration guidance, compromising roadway safety as trucking fatalities have increased since this guidance was issued.
      • Motor vehicle crashes are a leading cause of death in the United States, killing over 120 people every day.
    • The Trump Administration is committed to enforcing this law to protect the safety of American truckers, drivers, passengers, and others by ensuring that anyone operating a commercial vehicle is properly qualified and proficient in English, the national language.

    UPHOLDING NATIONAL LANGUAGE STANDARDS: President Trump has long championed the idea that English should be the official language of the United States.

    • President Trump previously signed an Executive Order designating English as the official language of the United States. 
    • With this Executive Order, President Trump is ensuring commercial drivers meet established English-proficiency standards to safely navigate roads, comply with regulations, and communicate effectively with authorities and employers.

    MIL OSI USA News –

  • MIL-OSI USA News: Protecting American Communities from Criminal Aliens

    Source: The White House

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

    Section 1. Purpose and Policy. Federal supremacy with respect to immigration, national security, and foreign policy is axiomatic. The Constitution provides the Federal Government with plenary authority regarding immigration to protect the sovereignty of our Nation and to conduct relations with other nations, who must be able to deal with one national Government on such matters. This power is sometimes contained in specific constitutional provisions: Article II of the Constitution vests the power to protect national security and conduct foreign policy in the President of the United States, and Article IV, Section 4, requires the Federal Government to “protect each of [the States] against Invasion.” This Federal power over immigration is also an inherent element of national sovereignty.

    The prior administration allowed unchecked millions of aliens to illegally enter the United States. The resulting public safety and national security risks are exacerbated by the presence of, and control of territory by, international cartels and other transnational criminal organizations along the southern border, as well as terrorists and other malign actors who intend to harm the United States and the American people. This invasion at the southern border requires the Federal Government to take measures to fulfill its obligation to the States.

    Yet some State and local officials nevertheless continue to use their authority to violate, obstruct, and defy the enforcement of Federal immigration laws. This is a lawless insurrection against the supremacy of Federal law and the Federal Government’s obligation to defend the territorial sovereignty of the United States. Beyond the intolerable national security risks, such nullification efforts often violate Federal criminal laws, including those prohibiting obstruction of justice (18 U.S.C. 1501 et seq.), unlawfully harboring or hiring illegal aliens (8 U.S.C. 1324), conspiracy against the United States (18 U.S.C. 371), and conspiracy to impede Federal law enforcement (18 U.S.C. 372). Assisting aliens in violating Federal immigration law could also violate the Racketeer Influenced and Corrupt Organizations Act (18 U.S.C. 1961 et seq.). Some measures to assist illegal aliens also necessarily violate Federal laws prohibiting discrimination against Americans in favor of illegal aliens and protecting Americans’ civil rights.

    It is imperative that the Federal Government restore the enforcement of United States law.

    Sec. 2. Designation of “Sanctuary” Jurisdictions. (a) Within 30 days of the date of this order, the Attorney General, in coordination with the Secretary of Homeland Security, shall publish a list of States and local jurisdictions that obstruct the enforcement of Federal immigration laws (sanctuary jurisdictions). After this initial publication, the Attorney General and the Secretary of Homeland Security shall update this list as necessary.

    (b) Immediately following each publication under subsection (a) of this section, the Attorney General and the Secretary of Homeland Security shall notify each sanctuary jurisdiction regarding its defiance of Federal immigration law enforcement and any potential violations of Federal criminal law.

    Sec. 3. Consequences for Sanctuary Jurisdiction Status. (a) With respect to sanctuary jurisdictions that are designated under section 2(a) of this order, the head of each executive department or agency (agency), in coordination with the Director of the Office of Management and Budget and as permitted by law, shall identify appropriate Federal funds to sanctuary jurisdictions, including grants and contracts, for suspension or termination, as appropriate.

    (b) With respect to jurisdictions that remain sanctuary jurisdictions after State or local officials are provided notice of such status under section 2(b) of this order and yet remain in defiance of Federal law, the Attorney General and the Secretary of Homeland Security shall pursue all necessary legal remedies and enforcement measures to end these violations and bring such jurisdictions into compliance with the laws of the United States.

    Sec. 4. Preventing Federal Benefits for Aliens in Sanctuary Jurisdictions. The Secretary of Homeland Security, in coordination with the Attorney General, shall develop guidance, rules, or other appropriate mechanisms to ensure appropriate eligibility verification is conducted for individuals receiving Federal public benefits within the meaning of 8 U.S.C. 1611(c) from private entities in a sanctuary jurisdiction, whether such verification is conducted by the private entity or by a governmental entity on its behalf.

    Sec. 5. Equal Treatment of Americans. The Attorney General, in consultation with the Secretary of Homeland Security and appropriate agency heads, shall identify and take appropriate action to stop the enforcement of State and local laws, regulations, policies, and practices favoring aliens over any groups of American citizens that are unlawful, preempted by Federal law, or otherwise unenforceable, including State laws that provide in-State higher education tuition to aliens but not to out-of-State American citizens that may violate 8 U.S.C. 1623 or that favor aliens in criminal charges or sentencing.

    Sec. 6. General Provisions. (a) Nothing in this order shall be construed to impair or otherwise affect:

    (i) the authority granted by law to an executive department or agency, or the head thereof; or

    (ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

    (b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

    (c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

    (d) The Department of Justice shall provide funding for this order’s publication in the Federal Register.

    DONALD J. TRUMP

    THE WHITE HOUSE,
    April 28, 2025.

    MIL OSI USA News –

  • MIL-OSI USA: Manufacturing Masterminds Q&A With Matt Ringer

    Source: US National Renewable Energy Laboratory

    The Shy Kid Who Left Law To Forge Chemical (and Human) Bonds

    Photo by Dennis Schroeder, NREL; graphic by Katie Carney, NREL

    This article is part of the Manufacturing Masterminds profile series, which provides an inside look into the lives, research, and impact of NREL’s advanced manufacturing researchers.

    At 8 years old, Matt Ringer already had the deep, booming voice of a radio announcer but not the personality to match.

    He was a shy, track-and-field kid who spent hours running (and not talking), chasing the coveted 4-minute-mile barrier (he likely would have broken it, too, if a college injury did not thwart his plans). Even when Ringer did talk, he discovered his syrupy voice resonated more with adults than kids.

    “Those things change who you are in certain ways,” Ringer said.

    For a long time, Ringer was not sure who he was—at least in terms of his career. He revered James Bond and other fictional spies who schemed their ways out of no-win situations. He loved planes and Tom Cruise’s character in “Top Gun” and considered becoming a fighter pilot. But he also admired Mark Greene, the main character on the medical drama “ER” and the sharp-suited lawyers on “L.A. Law.”

    In college, Ringer chose suits over lab coats—at least at first. He started as a political science major with law school ambitions, but his dad, an electrical engineer, had one request: “Sure, go be a political science major, but take a few math classes and an engineering class.” Ringer agreed and threw in a chemistry course, too. Soon, atoms and molecules and their frenetic energy seemed far more exciting than dense, prelaw readings.

    “My skill set is not in reading massive amounts of material; it never has been. It’s doing things,” Ringer said. “I had to do a lot of work to get into chemical engineering. But I did.”

    Matt Ringer may have started out as a shy track star running toward the 4-minute-mile barrier, but he ended up a charismatic leader running NREL’s advanced manufacturing program. Photos from Matt Ringer, NREL

    Today, after 23 years at the National Renewable Energy Laboratory (NREL), Ringer has become a bit like one of his beloved energetic atoms. As the laboratory program manager for NREL’s advanced manufacturing program, he helps build teams (aka molecules), connecting experts, organizations, and resources. These bonds are what ensure the laboratory’s researchers can turn theoretical concepts—like wide-bandgap power electronics, novel polymer formulations, more efficient grid technologies, or more stable water supplies—into real solutions.

    “I’m not going to be the person who creates the next sensor for an automotive manufacturing plant in Detroit, right?” Ringer said. “But I can help get the right people together to make that a reality.”

    In the latest Manufacturing Masterminds Q&A, Ringer shares how he ended up in a people-centered role despite his shy childhood and why he joined NREL despite knowing nothing about the laboratory and its mission. This interview has been edited for clarity and length.

    So, how did you go from political science to chemical engineering?

    When I applied to college, I was wrapped up in the imaginary life of “L.A. Law.” But the first quarter, I took chemistry again, and it really resonated with me. I liked understanding how you could use the energy molecules contained. But I never had a desire to get a Ph.D., and my dad always said that if I added engineering to something, that would make me more hirable. Lo and behold, there was a major called chemical engineering, and I thought, “Well, that’s probably what I need to do.”

    “I do love being the center of attention,” Ringer said. “Put me on a pedestal and let me talk, and I’ll do it.” Photo by Dennis Schroeder, NREL

    What did you do after you graduated with your chemical engineering degree?

    I worked as a research engineer at a startup membrane company in the San Francisco Bay Area called Membrane Technology and Research. I did a lot of pilot tests of our materials at larger companies and realized I was pretty good at talking to everybody from the senior manager all the way to the operator, technician, or mechanic. And I had an opportunity to shift from being a researcher to what we called more of a “sales engineer,” so I took it.

    What did you do as a “sales engineer”?

    I would prepare a quote, work with vendors to get costs for equipment, and then pull a bid package together. I also got to help manufacture the membranes that we sold. I would get all garbed up, get a glue gun, and roll sheets of membrane into a spiral-wound module. One of my sales highlights was spending about six months working with a Malaysian company to create a customized membrane system for their facility. That was my first sale and my one and only patent. That has long since expired, and I don’t believe it ever got used, but I still have a copy of it.

    Why did you leave? Sounds like you were enjoying that role.

    I had been there for six years, and I just needed to do something different and get out of California where I grew up. San Francisco was skyrocketing with dot-com craziness. And I had never envisioned how I would go to a dot-com with my background.

    My girlfriend at the time—who’s now my wife—was from Colorado, so we decided to come back here. And my former boss found a job posting at NREL. I’ll be honest—I knew nothing about NREL.

    Then why did you go for the NREL job?

    NREL wanted a process engineer. Being a chemical engineer, I thought I needed to go work at a refinery, but I would have had to move to a very remote location to get started. And I wasn’t ready to do that. During my NREL interview, they asked what I knew about biomass, and I went on a diatribe about anaerobic digesters that wasn’t exactly correct. But apparently, my sales persona, coupled with some of the industry experience I had, fit what they needed here.

    Ringer, seen here with his daughter Makena, may have bungled the biomass portion of his NREL interview, but his sales persona and industry experience earned him the role anyway. Photo from Matt Ringer, NREL

    How did you become a laboratory program manager?

    When I was here for about three years, I wanted to add a little more education into my background. I could go to law school and be an intellectual property attorney, but that’s a lot of reading. I could go to business school or get a master’s in engineering. Business school resonated with me. So, I went to talk to my boss. I had a whole pitch about why I should get my Master of Business Administration (MBA) and NREL should help pay for it. I said, “Hey, I want to get an MBA,” and he said, “Don’t say any more. I’ll use you in a different role.”

    One of my first opportunities after I finished my MBA was creating a program where NREL works with small businesses or startups that wanted to develop our technologies. For the first time, I got to work with DOE (the U.S. Department of Energy) in a more formal way, which I really enjoyed. 

    For me, it always comes back to people, right? There were people at DOE who I just connected with—I understood their world a little bit. And I thought, “Well, how can I do that and help NREL at the same time?” And being a laboratory program manager was that role.

    “I love winning races,” Ringer said. “But I can’t run races like I used to, which sucks.” Luckily, Ringer can still experience vicarious wins through his daughters, who both play soccer.

    And what does a laboratory program manager do, exactly?

    One of the amazing things for somebody like me who doesn’t have a Ph.D. is working with the researchers to understand the work they’re doing. I’m curious by nature, so the more I asked, the more people wanted to tell me. I’m not going to lie, there were things I didn’t understand. As a chemical engineer, I understand atoms and molecules more than I understand electrons. I’ve had to build a bridge between those things. That’s exactly what you do as a laboratory program manager. You bring different things together. You arrange teams. You try to be strategic.

    To be successful as a laboratory program manager, you have to know people from throughout the lab: receivables, travel, human resources, web developers, technicians. And you need to ensure the operational side of the lab connects with the needs of the technical side. So, while I’m not doing the research, I can help you find the opportunities, develop stronger proposals, and then execute them.

    What’s it like to work in advanced manufacturing, specifically?

    It’s inspiring. The energy space is an opportunity to grow domestic manufacturing. I knew about 3D manufacturing but not what to do with it. But I learned. Now, if I go and talk to some of our researchers about power electronics, I’m not going to understand it all, but I know why they’re needed to advance manufacturing.

    In an ideal world, what would you most hope to accomplish over the course of your career?

    When I was 25 years old, I wanted to make lots of money. Now, I want to see our technologies make an impact. I also like to help new creative people come into NREL, so they can carry on our work. I don’t know if I’m the greatest mentor in the world. But I have a lot of experience that I can share with people, and I like seeing people grow.

    What advice would you give to someone just starting their career?

    You can’t skip steps. You can’t come into NREL as a researcher and expect to be a research fellow or senior director in five years. A lot of people just want to be the boss—whatever that means—and that’s a recipe for disaster. You have to put in the time, be patient, and not always think, “What am I going to be doing in five years?” You’re doing what you’re doing, and you need to get it done right.

    And accept who you are. I’m bald. It’s fine. I enjoy it. Accepting who you are and where you are is so important to be happy. Otherwise, you’re fighting something that’s not real. And there are enough real things to fight.

    MIL OSI USA News –

  • MIL-OSI USA: Prepare for Severe Weather Tuesday

    Source: US State of New York

    overnor Kathy Hochul cautioned New Yorkers in portions of Western and Central New York to prepare for severe weather that includes an enhanced risk of severe thunderstorms expected to arrive Tuesday afternoon. Storms with strong winds are predicted along with a possible, isolated tornado for parts of Western New York, Southern Tier, North Country, Finger Lakes into Central New York. Wind gusts could exceed 70 MPH in these locations at times. There is also a possibility for hail up to one inch in diameter within thunderstorms, especially for western parts of the state. Rainfall is expected to be less than a half inch in most areas, but some isolated areas could see up to an inch of rain. There is also a marginal to slight risk for severe thunderstorms for much of the North Country, as well as portions of the Mohawk Valley, Capital Region, and Hudson Valley. Governor Hochul urged New Yorkers to closely monitor the weather and take any precautions necessary to stay safe through the storms.

    “As storm season approaches and severe weather makes its way to Western and Central New York, I am directing state agencies to be prepared to assist New Yorkers impacted by these storms,” Governor Hochul said. “My highest priority is the safety of New Yorkers, and I implore all those in the path of inclement storms to monitor weather conditions and take necessary precautions to stay safe.”

    For a complete listing of weather watches, warnings, advisories, and latest forecasts, visit the National Weather Service website.

    Division of Homeland Security and Emergency Services
    The Division’s Office of Emergency Management is in contact with their local counterparts and is prepared to facilitate requests for assistance. State stockpiles are staffed and ready to deploy emergency response assets and supplies as needed. The State Watch Center is monitoring the storm track and statewide impacts closely.

    Department of Transportation
    The State Department of Transportation is monitoring weather conditions and prepared to respond with 3,730 supervisors and operators available statewide. All field staff are available to fully engage and respond.

    Statewide equipment numbers are as follows:

    • 1,528 large dump trucks
    • 334 large loaders
    • 91 chippers
    • 90 tracked and wheeled excavators
    • 33 water pumps
    • 31 traffic and tree crew bucket trucks
    • 29 traffic tower platforms
    • 16 vacuum trucks with sewer jets

    The need for additional resources will be re-evaluated as conditions warrant throughout the event. For real-time travel information, motorists should call 511 or visit 511ny.org, New York State’s official traffic and travel information source.

    Thruway Authority
    The Thruway Authority has 660 operators and supervisors prepared to respond to any wind or flood related issues across the state with small to medium sized excavators, plow/dump trucks, large loaders, portable VMS boards, portable light towers, smaller generators, smaller pumps and equipment hauling trailers, as well as signage and other traffic control devices available for any detours or closures. Variable Message Signs and social media are utilized to alert motorists of weather conditions on the Thruway.

    Statewide equipment numbers are as follows:

    • 354 Large and Small Dump Trucks
    • 66 Loaders
    • 31 Trailers
    • 6 Vac Trucks
    • 15 Excavators
    • 8 Brush Chippers
    • 99 Chainsaws
    • 20 Aerial Trucks
    • 26 Skid Steers
    • 86 Portable Generators
    • 67 Portable Light Units

    The Thruway Authority encourages motorists to download the mobile app, which is available to download for free on iPhone and Android devices. The app provides motorists direct access to live traffic cameras, real-time traffic information and navigation assistance while on the go. Motorists can also sign up for TRANSalert e-mails which provide the latest traffic conditions along the Thruway, follow @ThruwayTraffic on X, and visit thruway.ny.gov to see an interactive map showing traffic conditions for the Thruway and other New York State roadways.

    Department of Public Service
    New York’s utilities have approximately 5,500 workers available statewide to engage in damage assessment, response, repair and restoration efforts across New York State, as necessary. Agency staff will track utilities’ work throughout the event and ensure utilities shift appropriate staffing to regions that experience the greatest impact.

    New York State Police
    State Police instructed all Troopers to remain vigilant and will deploy extra patrols to affected areas as needed. All four-wheel drive vehicles are in service, and all specialty vehicles are staged and ready for deployment.

    Department of Environmental Conservation
    The Department of Environmental Conservation’s (DEC) Emergency Management staff, Environmental Conservation Police Officers, Forest Rangers, and regional staff remain on alert and continue to monitor weather forecasts. Working with partner agencies, DEC is prepared to coordinate resource deployment of all available assets, including first responders, to targeted areas in preparation for potential impacts due to heavy rainfall and flooding.

    DEC reminds local officials to watch for potential flooding in their communities. Municipalities are encouraged to undertake local assessments of flood-prone areas and to remove any accumulating debris. DEC permits and authorization are not required to remove debris unless stream banks or beds will be disturbed by debris removal and/or the use of heavy equipment. Municipalities and local governments are advised to contact DEC’s Regional Permit Administrators if assistance is required and to help determine if a permit is necessary.

    If a permit is necessary, DEC can issue Emergency Authorizations to expedite approval of projects in place of an individual permit. DEC approves Emergency Authorizations for situations that are deemed an emergency based on the immediate protection of life, health, general welfare, property, or natural resources.

    Unpredictable weather and storms in the Adirondacks, Catskills, and other backcountry areas can create unexpectedly hazardous conditions. Visitors should be prepared with proper clothing and equipment for rain, snow, ice, and colder temperatures to ensure a safe outdoor experience. Trails have mixed conditions of snow, ice, slush, and mud.

    Hikers are advised to temporarily avoid all high-elevation trails, as well as trails that cross rivers and streams. Hikers in the Adirondacks are encouraged to check the Adirondack Backcountry Information webpages for updates on trail conditions, seasonal road closures, and general recreation information.

    Backcountry visitors should Hike Smart and follow proper safety guidelines. Plan trips accordingly. In an emergency, call 9-1-1. To request Forest Ranger assistance, call 1-833-NYS-RANGERS.

    Office of Parks, Recreation, and Historic Preservation
    New York State Park Police and park personnel are on alert and closely monitoring weather conditions and impacts. Park visitors should visit parks.ny.gov, check the free mobile app, or call their local park office for the latest updates regarding park hours, openings and closings.

    Thunderstorm Safety Tips

    Thunderstorms are dangerous storms that can produce 50+ mph winds, lightning, hail and cause flash flooding and tornadoes. If you can hear thunder, you are close enough to the storm to be struck by lightning. Go to a safe shelter immediately.

    • Move to a sturdy building. Do not take shelter in small sheds, under isolated trees, or in convertible automobiles.
    • If lightning occurs and sturdy shelter is not available, get inside a hard top automobile and keep windows up.
    • Get out of boats and away from water.
    • Telephone lines and metal pipes can conduct electricity. Unplug appliances not necessary for obtaining weather information. Avoid using the telephone or any electrical appliances.
    • Do not take a bath or shower.
    • Turn off air conditioners — power surges from lightning can overload compressors.
    • Get to higher ground if flash flooding or flooding is possible.
    • Do not attempt to drive to safety — most flash flooding deaths occur in automobiles.
    • If outdoors, find a low spot away from trees, fences, and poles.
    • If you are in the woods, take shelter under short trees.
    • If you feel your skin tingle or your hair stands on end, squat low to the ground on the balls of your feet; place your hands on your knees with your head between them; make yourself the smallest target possible; and minimize your contact with the ground.

    Tornado Safety Tips

    • If outdoors: Seek shelter in a substantial building immediately. If there is no shelter nearby, lie flat in a ditch or low spot with your hands shielding your head.
    • Do not try to outrun a tornado in your car; instead, leave it immediately.
    • If at home or in a small building: Go to the basement or an interior room on the lowest floor of the building. Stay away from windows. Closets, bathrooms, and other interior rooms offer the best protection. Get under something sturdy or cover yourself with a mattress.
    • If in a school, hospital, or shopping center: Go to a pre-designated shelter area. Stay away from large open areas and windows. Do not go outside to your car.
    • If in a high-rise building: Go to an interior small room or hallway on the lowest floor possible. Do not use the elevators. Use the stairs.
    • If in a mobile home or vehicle: Get out of mobile homes or vehicles – they are easily tossed about by strong winds in the tornado.
    • Take shelter in a substantial structure: If there is no shelter near-by, lie flat in a ditch or low spot with your hands shielding your head.

    Flood Safety

    • During flash flooding, never attempt to drive on a flooded road. Turn around and go another way. If water begins to rise rapidly around you in your car, abandon the vehicle immediately.
    • Do not underestimate the power of fast-moving water. Two feet of fast-moving flood water will float your car, and water moving at two miles per hour can sweep cars off a road or bridge.

    MIL OSI USA News –

  • MIL-OSI Security: Honduran Man in U.S. Illegally is Charged With Gun Possession

    Source: Office of United States Attorneys

    PHILADELPHIA – United States Attorney David Metcalf announced that Marvin Enrique Pena-Portillo, 38, a Honduran national unlawfully residing in Philadelphia, Pennsylvania, was arrested and charged by criminal complaint with possession of a firearm by a felon. He was ordered detained in federal custody at a detention hearing this afternoon.

    The criminal complaint alleges that, on April 15, 2025, when Immigration and Customs Enforcement (ICE) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) agents arrested the defendant for immigration violations, Pena-Portillo had a loaded 9 mm semiautomatic pistol in his waistband.

    In August of 2024, in the Philadelphia Court of Common Pleas, Pena-Portillo pleaded guilty to carrying an illegal firearm in public and was sentenced to two years of probation for that offense.

    This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.

    The case was investigated by ICE Enforcement and Removal Operations and the ATF.

    The charges and allegations contained in the criminal complaint are merely accusations. Every defendant is presumed to be innocent unless and until proven guilty in court.

    MIL Security OSI –

  • MIL-OSI Security: Fresno County Farmer Sentenced to Prison for Crop Insurance Fraud

    Source: Office of United States Attorneys

    Jatinderjeet “Jyoti” Sihota, 40, of Selma, was sentenced today to one year in prison for conspiring to commit crop insurance fraud, Acting U.S. Attorney Michele Beckwith announced.

    According to court records, for many years, Sihota’s family’s farming operation produced table grapes and other crops in Fresno and Tulare Counties, and it sold many of those crops through a fruit packing company where Ralph Hackett, 69, of Clovis, was a member and manager.

    Beginning in 2012, Sihota became involved with her family’s farming operation. Thereafter, from 2012 through 2016, she and Hackett carried out a fraud scheme to obtain more than $650,000 in crop insurance payments to which they were not entitled. They caused altered records that underreported the amount of crops the farming operation sold through the fruit packing company to be provided to the insurance company to make it appear as though the farming operation had suffered significant crop losses when that was not true.

    Emails and other evidence showed that the fraud was Sihota’s idea. She pleaded with Hackett to make the alterations, instructed him on the specific changes that needed to be made, and asked him to keep everything a secret. Sihota emailed other fruit brokers asking them to alter records for her, but they refused to do so.

    This case was the product of an investigation by the U.S. Department of Agriculture Office of Inspector General and Risk Management Agency Special Investigations Staff. Assistant U.S. Attorney Joseph Barton prosecuted the case.

    Hackett was charged separately and has pleaded guilty for his role in the fraud. Hackett is scheduled to be sentenced on May 27, 2025. He faces a maximum statutory penalty of 20 years in federal prison and $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

    MIL Security OSI –

  • MIL-OSI USA: Rosen Demands Answers on Elimination of Critical Cybersecurity Personnel at Department of Health and Human Services

    US Senate News:

    Source: United States Senator Jacky Rosen (D-NV)

    WASHINGTON, DC – Today, U.S. Senator Jacky Rosen (D-NV) sent a letter to Secretary of Health and Human Services (HHS) Robert Kennedy Jr. expressing her deep concerns and demanding answers regarding the elimination of critical information technology and cybersecurity personnel and leadership at HHS. In the letter, Rosen highlighted the risks to Americans’ health data if left unprotected.
    “I write to express my deep concerns over the recent reports that the Department of Health and Human Services (HHS) has removed key Information Technology (IT) and cybersecurity personnel and leadership, leaving critical infrastructure unprotected and unmaintained,” wrote Senator Rosen. “I’m concerned the elimination of these key staff was made without clear justification or regard to the risk to cybersecurity, network and system functionality, and the potential for Americans’ health data to go unprotected.”
    “As the second-largest department in the federal government, staff across HHS manage complex and large networks and systems, requiring specialized IT personnel,” she continued. “The reported removal of staff from tech offices across HHS is highly disturbing, as these staff were responsible for managing essential networks and systems, public-facing websites, enterprise services, and cybersecurity contracts.”
    The full letter can be found HERE.
    Since she joined the Senate, Senator Rosen has been working across party lines to strengthen our nation’s cybersecurity infrastructure. Last year, she announced that the Department of Veterans Affairs (VA) implemented her bipartisan law to strengthen the cybersecurity of veterans’ personal information and data. Last Congress, Rosen’s bipartisan legislation to bolster cybersecurity in the health care and public health sectors advanced out of committee.

    MIL OSI USA News –

  • MIL-OSI USA: Heinrich, Luján Introduce Legislation to Build More Homes for New Mexicans, Reduce Homelessness

    US Senate News:

    Source: United States Senator Ben Ray Luján (D-New Mexico)

    WASHINGTON — U.S. Senators Martin Heinrich (D-N.M.) and Ben Ray Luján (D-N.M.) introduced the Housing for All Act, legislation to address the housing shortage and homelessness crises in New Mexico. If passed, the bill will invest in proven solutions to address housing shortages and provide a historic level of federal funding for programs to bolster innovative, locally developed solutions to increase the housing stock in the state and help New Mexicans experiencing homelessness.

    As the Trump Administration undermines and defunds critical housing services across the country — including illegal staff cuts at the Department of Housing and Urban Development (HUD) and potential closures of nearly two-thirds of HUD field offices nationwide — investments to boost the affordable housing stock and reduce homelessness are essential.

    “Housing costs in New Mexico and across the country are out of control. The solution is simple: we need to build and renovate more homes. And we need to provide our community leaders with the financial support necessary to carry out this important work,” said Heinrich. “While Donald Trump and Elon Musk’s “DOGE” boys gut housing services that help New Mexicans keep a roof over their head, I’m focused on boosting essential programs that increase the housing stock, lower costs, and help hardworking families get ahead.”

    “In New Mexico and across the country, far too many Americans lack access to affordable housing options and are experiencing homelessness,” said Luján. “As housing programs and services face ongoing attacks and funding cuts, the need to expand affordable housing options has never been greater. That’s why I’m proud to introduce this legislation to address housing shortages and help end homelessness in New Mexico.”

    Across New Mexico, there is a shortage of rental homes affordable and available to households whose incomes are at or below the poverty line or 30% of their area median income. And, according to a January 2024 survey conducted by the New Mexico Coalition to End Homelessness, 4,649 people experienced homelessness in New Mexico on a night in January. Furthermore, half of New Mexico’s lower-income renters spend more than 30% of their income on housing costs, including utilities.

    Heinrich and Luján’s Housing for All Act takes an all-hands-on-deck approach to combat these crises, including historic investments from the federal government in housing solutions.

    Addressing the Affordable Housing Shortage

    The Housing for All Act addresses the affordable housing shortage by investing in federal housing programs, including:

    • The National Housing Trust Fund
      • This program increases and preserves the supply of affordable housing.
    • The HOME Investment Partnerships Program
      • The HOME program provides grants to state and local governments to build affordable housing for low-income households.
    • The Section 202 Supportive Housing for the Elderly Program
      • The Section 202 program helps expand the supply of affordable housing by supporting nonprofit entities that build housing for low-income seniors.
    • The Section 811 Supportive Housing for People with Disabilities Program
      • The Section 811 program helps build and subsidize rental housing with supportive services for low-income adults with disabilities.

    Addressing the Homelessness Crisis

    The Housing for All Act addresses the homelessness crisis by investing in:

    • Housing Choice Vouchers
      • These vouchers help low-income families, elderly persons, veterans and disabled individuals afford housing in the private market.
    • Project-Based Rental Assistance
      • This type of rental assistance allows tenants to live in an affordable unit and pay rent based upon their income.
    • The Emergency Solutions Grant Program
      • This program connects families and individuals to rapid re-housing assistance, emergency shelter, and homelessness prevention.
    • Continuum of Care Program
      • This program provides funding for efforts to end homelessness and promotes access to programs that can help homeless individuals and families.

    Supporting Innovative and Locally Developed Approaches

    The Housing for All Act supports innovative and locally developed approaches by investing in:

    • Hotel and motel conversions to permanent supportive housing with supportive services.
    • The Eviction Protection Grant Program to support experienced legal service providers in providing legal assistance to low-income tenants at risk of or subject to eviction.
    • Mobile crisis intervention teams to help those with medical or psychological needs get the care that they need.
    • Programs that offer a safe place to park overnight and facilitate access to rehousing and essential services.
    • Library programs that support people experiencing homelessness.
    • Inclusive transit-oriented housing development.
    • Improved coordination of culturally competent, trauma-informed behavioral health and homelessness services.

    A one-page summary of the bill is here.

    A section-by-section summary of the bill is here.

    The text of the bill is here.

    For a list of Heinrich’s actions to lower housing costs and tackle the housing shortage in New Mexico, click here.

    For a list of Luján’s actions to lower housing costs and tackle the housing shortage in New Mexico, click here.

    MIL OSI USA News –

  • MIL-OSI USA: Attorney General Bonta Announces Settlements with Companies Selling Seafood Products in California Regarding Cadmium and Lead in Their Products

    Source: US State of California Department of Justice

    OAKLAND – California Attorney General Rob Bonta today announced settlements with Clearwater Fine Foods USA Inc. (Clearwater), Seaquest Seafood Corporation (Seaquest), and Jayone Foods (Jayone), resolving allegations that the companies sold fresh and/or frozen seafood products in California with elevated levels of the toxic heavy metals lead and/or cadmium without the warnings required for exposures to such contaminants, a violation of Proposition 65 and the Unfair Competition Law. The settlement with Clearwater requires it to pay a total of $304,164.98 in civil penalties, attorneys’ fees, and costs. Clearwater must also adhere to injunctive terms that include implementing heavy metal reduction measures.  A separate settlement requires Seaquest and Jayone to provide warnings, and to pay a total of $81,440 in civil penalties, attorneys’ fees, and costs. The Seaquest and Jayone settlement includes opt-in provisions that will allow other sellers of fresh or frozen seafood products to join in the settlement on similar terms.

    “No one should have to question whether their food is safe to eat,” said Attorney General Bonta. “That’s why California law requires businesses to warn our residents about potential harm from significant exposures to toxic contaminants. We appreciate the cooperation of these companies in taking steps to minimize heavy metals in their seafood products, in addition to providing warnings if their products cannot be kept below the applicable regulatory threshold. At the California Department of Justice, we will continue to hold accountable those who fail to warn consumers that they are being exposed to significant levels of toxic contaminants.”

    Cadmium and lead are both toxic heavy metals that accumulate in the body over time, leading to serious health issues. Long-term exposure to cadmium through ingestion can lead to reproductive harm and kidney toxicity. Exposure to lead by ingesting contaminated foods can lead to reproductive and developmental toxicity, resulting in effects such as reduced male fertility and an increased risk of miscarriage and birth defects.

    The settlement with Clearwater, a seafood harvester, resulted from an investigation the Attorney General’s Office conducted after receiving Proposition 65 sixty-day notices from a private enforcer relating to several of Clearwater’s clam products. The data supporting these notices revealed cadmium concentrations in excess of the regulatory “safe harbor” level at which no Proposition 65 warnings are required.

    After testing the Clearwater products to validate the test results, our office confirmed that the clam products at issue contained cadmium levels that exceeded the regulatory Proposition 65 safe harbor level set by the California Office of Environmental Health Hazard Assessment, the implementing agency. The products thus required warnings for reproductive toxicity under Proposition 65, which Clearwater had failed to provide, thereby violating both Proposition 65 and the Unfair Competition Law.

    By entering into the settlement with the Attorney General, Clearwater has agreed to terms that go above and beyond the requirements of Proposition 65, and benefit public health by requiring Clearwater to minimize cadmium levels in its clam products. The settlement resolves the People’s allegations and requires the company to pay civil penalties, attorneys’ fees, and costs, as referenced above, as well as to adhere to injunctive terms. These terms include mandating that Clearwater monitor its clam harvesting, minimize the introduction of heavy metals during processing, retain a food quality auditor to assess the origin of any detected cadmium, and conduct compliance testing to ensure that levels of cadmium in these products are minimized. Clearwater would be required to provide warnings if its fresh or frozen clam products expose California consumers to levels of cadmium above the Proposition 65 warning threshold, or if it elects to discontinue these measures.

    The settlement with Seaquest and Jayone, two distributors of seafood supplied by other companies, stems from a similar investigation conducted by the Attorney General’s Office.  Our office tested multiple seafood products distributed by the two companies and confirmed that the products at issue exceeded the safe harbor levels for lead and/or cadmium. The products thus required warnings for reproductive toxicity under Proposition 65, which neither company had provided, thereby violating both Proposition 65 and the Unfair Competition Law.

    The Seaquest and Jayone settlement resolves the People’s allegations, requires both companies to provide warnings in accordance with Proposition 65, and requires them to ask their suppliers to implement practices that will minimize the introduction of lead and cadmium during processing. It also requires the payment of civil penalties and attorneys’ fees and costs, as referenced above. The settlement includes opt-in provisions that permit similarly situated companies that may be out of compliance with Proposition 65 to join in the settlement on similar terms.

    A copy of the Clearwater settlement can be found here. 

    A copy of the Seaquest and Jayone settlement can be found here.

    MIL OSI USA News –

  • MIL-OSI USA: Durbin Reflects On The Life And Legacy Of The Late Pope Francis

    US Senate News:

    Source: United States Senator for Illinois Dick Durbin
    April 28, 2025
    Durbin: In a world of hate and fear, the Pope’s message of peace and understanding is needed now more than ever
    WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL) today delivered a speech on the Senate floor commemorating and honoring the late Pope Francis. This weekend, Durbin attended the late Pope’s funeral in the Vatican along with U.S. Senators Susan Collins (R-ME), Ed Markey (D-MA), Mike Rounds (R-SD), and Eric Schmitt (R-MO).
    “Today I join people across the world and mourn the passing of Pope Francis. He was forgiving, hopeful, and committed to the notion of peace. Francis taught us that there is no one ‘right’ way to be a Catholic. That the Church can shape you, and you can shape the Church. And in the process, he made the Church stronger,” said Durbin.
    During his speech, Durbin also noted he attended the Pope’s Joint Address to Congress in 2015—the first Pope to ever do so. Durbin then praised Pope Francis for using his platform to highlight the plight of immigrants and refugees, to ask compassion for those in the LGBTQ+ community whom the Church has historically shunned, and to advocate for peace in distant wars and to protect our environment.
    “Like myself, Pope Francis was the child of immigrants, and he often reminded us of our responsibility to welcome the stranger. In a recent letter to American Catholic bishops, Pope Francis affirmed our nation’s right to ‘defend itself and keep communities safe.’ But he raised serious concerns about mass deportation, which ‘damages the dignity of many men and women, and of entire families, and places them in a state of particular vulnerability and defenselessness.’ His message is so timely as our government ignores due process and through an ‘administrative error,’ sends individuals to a hell-hole prison in El Salvador and deports a two-year-old to Honduras,” said Durbin.
    Durbin praised Pope Francis for the speech he prepared for Easter Sunday—one day before he passed away. The Pope was so ill that he was unable to deliver the speech himself, so it was read by one of his aides.
    Durbin continued, “It was a speech of peace. It was a speech of hope. It was the speech of a truly good man. In it, he pled, ‘On this day, I would like all of us to hope anew and to revive our trust in others, including those who are different than ourselves, or who come from distant lands, bringing unfamiliar customs, ways of life and ideas.’”
    Durbin concluded by reflecting on the Pope’s funeral—where hundreds of thousands of people gathered in St. Peter’s Square in the Vatican City to mourn the death of Pope Francis.
    “The crowd was overwhelming. Estimated in the hundreds of thousands, they represented every corner of the Earth. Just in our small section was a delegation in business suits from Lesotho in Africa, Buddhists in bright orange robes, members of the Italian Parliament, a turbaned Sikh delegation from India, and our bipartisan House delegation led by Nancy Pelosi and Republican Leader Steve Scalise. Thousands of Catholic clergy on the altar and in the audience wore vestments presenting every shade of scarlet and red. But the vast crowds of mourners and celebrants were simply admirers of Francis who, in his humble way, touched so many lives. At the front of the altar was his simple wooden casket,” Durbin continued.
    “The funeral ceremony was in Latin, the language of the Catholic Church when I was a young altar boy at St. Elizabeth’s Church in East St. Louis, Illinois, in the 1950’s. As I witnessed this solemn mass and read from the text, I could hear in my mind the rusty hinges of an opening door taking me back to the Latin mass and Gregorian chant of my childhood. It is all still there, ‘deo gratias,’” said Durbin.
    “How did this Mass differ from the Funeral of John Paul II decades ago?  I remember the crowds of Polish mourners with their red and white flags for John Paul II,” Durbin continued. “But with Francis, what struck me were the many waves of spontaneous cheering from the vast crowd when reference was made to his simple message for immigrants, peace, understanding. Who can forget his five words: ‘Who am I to judge?’ defined his humility and humanity for so many of us. After the ceremony, I went back to my hotel room and turned on my TV. There was a recurring segment every few minutes. It showed a simple photograph of Francis and the Italian words: ‘Grazie Francesco, il Papa della gente.’ Translated to English: ‘Thank you, Francis. The Pope of the people.’ We must continue to hold fast to the message of Pope Francis to love and respect one another.  In a world of hate and fear, his message of peace and understanding is needed now more than ever,”Durbin concluded.
    Video of Durbin’s remarks on the Senate floor is available here.
    Audio of Durbin’s remarks on the Senate floor is available here.
    Footage of Durbin’s remarks on the Senate floor is available here for TV Stations.
    -30-

    MIL OSI USA News –

  • MIL-OSI: Farmers & Merchants Bancorp, Inc. Reports 2025 First-Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    ARCHBOLD, Ohio, April 28, 2025 (GLOBE NEWSWIRE) — Farmers & Merchants Bancorp, Inc. (Nasdaq: FMAO) today reported financial results for the 2025 first quarter ended March 31, 2025.

    2025 First Quarter Financial and Operating Highlights
    (at March 31, 2025 and on a year-over-year basis unless noted)

    • 88 consecutive quarters of profitability
    • Total interest income increased 6.1% to $41.0 million, driven by a 19-basis point improvement in the yield on earning assets and a higher average loan balance
    • Total loans increased by $40.5 million, or 1.6% to $2.58 billion
    • Total assets increased by $101.2 million, or 3.1% to $3.39 billion
    • Total deposits increased by $78.9 million, or 3.0% to $2.70 billion
    • Efficiency ratio improved to 66.79%, compared to 74.08%
    • Pre-tax, pre-provision income increased 49.6% to $9.3 million, from $6.2 million
    • Net income increased 29.7% to $7.0 million, or $0.51 per basic and diluted share
    • Asset quality remains at historically strong levels with nonperforming loans of only $4.5 million and net charge-offs to average loans of 0.01%
    • Tier 1 leverage ratio was 8.44%

    Lars B. Eller, President and Chief Executive Officer, stated, “2025 is off to a solid start, reflecting the positive impacts our strategic priorities are having on our financial performance. Throughout the first quarter we made progress enhancing profitability, controlling growth, driving innovation, and achieving greater operational efficiency. Most importantly, our strong first-quarter results underscore the excellent execution by our team and F&M’s ongoing commitment to delivering local, personalized financial services to our communities in Ohio, Indiana, and Michigan.”

    Mr. Eller continued, “For the first quarter of 2025 our net interest margin grew 43-basis points year-over year to 3.03% and increased 19-basis points from the fourth quarter of 2024. This growth demonstrates the benefits of continued loan repricing, as well as our disciplined approach to new loan originations and strategic efforts underway to improve our cost of funds. Total revenue – defined by net interest income plus noninterest income – increased 16.7% year-over-year, while noninterest expense rose 5.2%. This favorable spread strengthened our efficiency ratio and drove a 49.6% increase in pre-tax, pre-provision income. As we continue to successfully execute against our 2025 strategic priorities, we expect continued year-over-year growth in net income.”

    Income Statement
    Net income for the 2025 first quarter ended March 31, 2025, was $7.0 million, compared to $5.4 million for the same period last year. Net income per basic and diluted share for the 2025 first quarter was $0.51, compared to $0.39 for the same period last year.

    Deposits
    At March 31, 2025, total deposits were $2.70 billion, an increase of 3.0% from March 31, 2024. The Company’s cost of interest-bearing liabilities was 2.76% for the quarter ended March 31, 2025, compared to 3.06% for the quarter ended March 31, 2024.

    Mr. Eller commented, “We continue to pursue opportunities that optimize our deposit base and grow low-cost checking deposits. As a result, more expensive time-account balances have declined year-over-year by $19.5 million, while total deposits have increased by $78.9 million reflecting growth in lower cost core deposits. These trends have reduced our cost of funds, while improving our loan-to-deposit ratio.”

    Loan Portfolio and Asset Quality
    “Offices opened in 2023 continue to add new loans and new deposits at a faster pace than our legacy locations, which we believe demonstrates the need for the local community banking services F&M provides. Overall, we are experiencing stable demand across all of our markets, as a result of the addition of proven bankers to our team, our regional structure, new financial products, and growing commercial relationships. Positive demand trends allow us to control growth, expand our yield on loans, and maintain excellent asset quality. Our credit quality remains strong with nonperforming loans to total loans of just 0.17% at March 31, 2025 – the fourth quarter in a row this metric has remained below 0.20%,” continued Mr. Eller.

    Total loans, net at March 31, 2025, increased 1.6%, or by $40.5 million to $2.58 billion, compared to $2.54 billion at March 31, 2024. The year-over-year increase was driven primarily by higher agricultural, commercial and industrial, and commercial real estate loans, partially offset primarily by lower consumer, agricultural real estate, and consumer real estate loans. Compared to the quarter ended December 31, 2024, total loans, net at March 31, 2025, increased by 0.8% or $20.0 million.

    F&M continues to closely monitor its loan portfolio with a particular emphasis on higher risk sectors. Nonperforming loans were $4.5 million, or 0.17% of total loans at March 31, 2025, compared to $19.4 million, or 0.76% of total loans at March 31, 2024, and $3.1 million, or 0.12% at December 31, 2024.

    F&M maintains a well-balanced, diverse and high performing CRE portfolio. CRE loans represented 51.3% of the Company’s total loan portfolio at March 31, 2025. In addition, F&M’s commercial real estate office credit exposure represented 5.4% of the Company’s total loan portfolio at March 31, 2025, with a weighted average loan-to-value of approximately 63% and an average loan of approximately $965,366.

    F&M’s CRE portfolio included the following categories at March 31, 2025:

    CRE Category

    		  

    Dollar
    Balance

    		   Percent of
    CRE
    Portfolio    (*)    		   Percent of
    Total Loan
    Portfolio    (*)
                 
    Industrial   $ 281,484   21.2%   10.9%
    Multi-family     217,903   16.4%   8.4%
    Retail     213,281   16.1%   8.3%
    Hotels     157,139   11.8%   6.1%
    Office     139,069   10.5%   5.4%
    Gas Stations     70,983   5.3%   2.7%
    Food Service     52,827   4.0%   2.0%
    Senior Living     31,400   2.4%   1.2%
    Development     29,907   2.3%   1.2%
    Auto Dealers     27,294   2.1%   1.1%
    Other     104,411   7.9%   4.0%
    Total CRE   $ 1,325,698   100.0%   51.3%
                   

    * Numbers have been rounded

    At March 31, 2025, the Company’s allowance for credit losses to nonperforming loans was 586.38%, compared to 127.28% at March 31, 2024. The allowance to total loans was 1.07% at March 31, 2025, compared to 1.05% at March 31, 2024. Including accretable yield adjustments, associated with the Company’s prior acquisitions, F&M’s allowance for credit losses to total loans was 1.08% at March 31, 2025, compared to 1.11% at March 31, 2024.

    Mr. Eller concluded, “While the near-term economic environment has become more fluid, we believe F&M is in a strong position because of the platform we have built and the strategies we are pursuing to transform our business in 2025. As a result, we continue to believe 2025 will be another good year for F&M.”

    Stockholders’ Equity and Dividends
    Total stockholders’ equity increased 8.5% to $344.6 million, or $25.12 per share at March 31, 2025, from $317.7 million, or $23.22 per share at March 31, 2024. The Company had a Tier 1 leverage ratio of 8.44%, compared to 8.40% at March 31, 2024.

    Tangible stockholders’ equity increased to $263.0 million at March 31, 2025, compared to $256.5 million at March 31, 2024. On a per share basis, tangible stockholders’ equity at March 31, 2025, was $19.17 per share, compared to $18.75 per share at March 31, 2024.

    For the three months ended March 31, 2025, the Company declared cash dividends of $0.22125 per share, representing a 0.6% increase over the same period last year. F&M is committed to returning capital to shareholders and has increased the annual cash dividend for 30 consecutive years. For the three months ended March 31, 2025, the dividend payout ratio was 43.10% compared to 55.52% for the same period last year.

    About Farmers & Merchants State Bank:
    F&M Bank is a local independent community bank that has been serving its communities since 1897. F&M Bank provides commercial banking, retail banking and other financial services. Our locations are in Butler, Champaign, Fulton, Defiance, Hancock, Henry, Lucas, Shelby, Williams, and Wood counties in Ohio. In Northeast Indiana, we have offices located in Adams, Allen, DeKalb, Jay, Steuben and Wells counties. The Michigan footprint includes Oakland County, and we have Loan Production Offices in Troy, Michigan; Muncie, Indiana; and Perrysburg and Bryan, Ohio.

    Safe Harbor Statement
    Farmers & Merchants Bancorp, Inc. (“F&M”) wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995. Statements by F&M, including management’s expectations and comments, may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21B of the Securities Exchange Act of 1934, as amended. Actual results could vary materially depending on risks and uncertainties inherent in general and local banking conditions, competitive factors specific to markets in which F&M and its subsidiaries operate, future interest rate levels, legislative and regulatory decisions, capital market conditions, or the effects of the COVID-19 pandemic, and its impacts on our credit quality and business operations, as well as its impact on general economic and financial market conditions. F&M assumes no responsibility to update this information. For more details, please refer to F&M’s SEC filing, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q. Such filings can be viewed at the SEC’s website, www.sec.gov or through F&M’s website www.fm.bank.

    Non-GAAP Financial Measures
    This press release includes disclosure of financial measures not prepared in accordance with generally accepted accounting principles in the United States (GAAP). A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed by GAAP. Farmers & Merchants Bancorp, Inc. believes that these non-GAAP financial measures provide both management and investors a more complete understanding of the underlying operational results and trends and Farmers & Merchants Bancorp, Inc.’s marketplace performance. The presentation of this additional information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with GAAP. A reconciliation of GAAP to non-GAAP financial measures is included within this press release.

    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF INCOME & COMPREHENSIVE INCOME
    (Unaudited) (in thousands of dollars, except per share data)
     
      Three Months Ended
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Interest Income                  
    Loans, including fees $ 37,072     $ 36,663     $ 36,873     $ 36,593     $ 35,200  
    Debt securities:                  
    U.S. Treasury and government agencies   2,097       1,882       1,467       1,148       1,045  
    Municipalities   382       384       387       389       394  
    Dividends   338       367       334       327       333  
    Federal funds sold   –       24       7       7       7  
    Other   1,113       2,531       2,833       2,702       1,675  
    Total interest income   41,002       41,851       41,901       41,166       38,654  
    Interest Expense                  
    Deposits   13,988       15,749       16,947       16,488       15,279  
    Federal funds purchased and securities sold under agreements to repurchase   271       274       277       276       284  
    Borrowed funds   2,550       2,713       2,804       2,742       2,689  
    Subordinated notes   284       285       284       285       284  
    Total interest expense   17,093       19,021       20,312       19,791       18,536  
    Net Interest Income – Before Provision for Credit Losses   23,909       22,830       21,589       21,375       20,118  
    Provision for (Recovery of) Credit Losses – Loans   811       346       282       605       (289 )
    Recovery of Credit Losses – Off Balance Sheet Exposures   (260 )     (120 )     (267 )     (18 )     (266 )
    Net Interest Income After Provision for Credit Losses   23,358       22,604       21,574       20,788       20,673  
    Noninterest Income                  
    Customer service fees   381       237       300       189       598  
    Other service charges and fees   1,124       1,176       1,155       1,085       1,057  
    Interchange income   1,421       1,322       1,315       1,330       1,429  
    Loan servicing income   762       771       710       513       539  
    Net gain on sale of loans   284       223       215       314       107  
    Increase in cash surrender value of bank owned life insurance   244       248       265       236       216  
    Net gain (loss) on sale of other assets owned   (54 )     22       –       49       –  
    Total noninterest income   4,162       3,999       3,960       3,716       3,946  
    Noninterest Expense                  
    Salaries and wages   7,878       7,020       7,713       7,589       7,846  
    Employee benefits   2,404       2,148       2,112       2,112       2,171  
    Net occupancy expense   1,199       1,072       1,054       999       1,027  
    Furniture and equipment   1,278       1,032       1,472       1,407       1,353  
    Data processing   557       160       339       448       500  
    Franchise taxes   397       312       410       265       555  
    ATM expense   491       328       472       397       473  
    Advertising   503       498       597       519       530  
    FDIC assessment   465       505       516       507       580  
    Servicing rights amortization – net   127       244       219       187       168  
    Loan expense   228       236       244       251       229  
    Consulting fees   745       242       251       198       186  
    Professional fees   559       368       453       527       445  
    Intangible asset amortization   445       446       445       444       445  
    Other general and administrative   1,484       1,465       1,128       1,495       1,333  
    Total noninterest expense   18,760       16,076       17,425       17,345       17,841  
    Income Before Income Taxes   8,760       10,527       8,109       7,159       6,778  
    Income Taxes   1,808       2,146       1,593       1,477       1,419  
    Net Income   6,952       8,381       6,516       5,682       5,359  
    Other Comprehensive Income (Loss) (Net of Tax):                  
    Net unrealized gain (loss) on available-for-sale securities   6,464       (7,403 )     11,664       2,531       (1,995 )
    Reclassification adjustment for realized loss on sale of available-for-sale securities   –       –       –       –       –  
    Net unrealized gain (loss) on available-for-sale securities   6,464       (7,403 )     11,664       2,531       (1,995 )
    Tax expense (benefit)   1,358       (1,554 )     2,449       531       (418 )
    Other comprehensive income (loss)   5,106       (5,849 )     9,215       2,000       (1,577 )
    Comprehensive Income $ 12,058     $ 2,532     $ 15,731     $ 7,682     $ 3,782  
    Basic Earnings Per Share $ 0.51     $ 0.61     $ 0.48     $ 0.42     $ 0.39  
    Diluted Earnings Per Share $ 0.51     $ 0.61     $ 0.48     $ 0.42     $ 0.39  
    Dividends Declared $ 0.22125     $ 0.22125     $ 0.22125     $ 0.22     $ 0.22  
                       
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited) (in thousands of dollars, except share data)
     
      March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
      (Unaudited)       (Unaudited)   (Unaudited)   (Unaudited)
    Assets                  
    Cash and due from banks $ 172,612     $ 174,855     $ 244,572     $ 191,785     $ 186,541  
    Federal funds sold   425       1,496       932       1,283       1,241  
    Total cash and cash equivalents   173,037       176,351       245,504       193,068       187,782  
                       
    Interest-bearing time deposits   1,992       2,482       2,727       3,221       2,735  
    Securities – available-for-sale   438,568       426,556       404,881       365,209       347,516  
    Other securities, at cost   14,062       14,400       15,028       14,721       14,744  
    Loans held for sale   2,331       2,996       1,706       1,628       2,410  
    Loans, net of allowance for credit losses   2,555,552       2,536,043       2,512,852       2,534,468       2,516,687  
    Premises and equipment   33,163       33,828       33,779       34,507       35,007  
    Construction in progress   –       –       35       38       9  
    Goodwill   86,358       86,358       86,358       86,358       86,358  
    Loan servicing rights   5,805       5,656       5,644       5,504       5,555  
    Bank owned life insurance   35,116       34,872       34,624       34,359       34,123  
    Other assets   42,802       45,181       46,047       49,552       54,628  
                       
    Total Assets $ 3,388,786     $ 3,364,723     $ 3,389,185     $ 3,322,633     $ 3,287,554  
                       
    Liabilities and Stockholders’ Equity                  
    Liabilities                  
    Deposits                  
    Noninterest-bearing $ 502,318     $ 516,904     $ 481,444     $ 479,069     $ 510,731  
    Interest-bearing                  
    NOW accounts   874,881       850,462       865,617       821,145       829,236  
    Savings   696,635       671,818       661,565       673,284       635,430  
    Time   626,450       647,581       676,187       667,592       645,985  
    Total deposits   2,700,284       2,686,765       2,684,813       2,641,090       2,621,382  
                       
    Federal funds purchased and securities                  
    sold under agreements to repurchase   27,258       27,218       27,292       27,218       28,218  
    Federal Home Loan Bank (FHLB) advances   245,474       246,056       263,081       266,102       256,628  
    Subordinated notes, net of unamortized issuance costs   34,846       34,818       34,789       34,759       34,731  
    Dividend payable   2,997       2,996       2,998       2,975       2,975  
    Accrued expenses and other liabilities   33,326       31,659       40,832       27,825       25,930  
    Total liabilities   3,044,185       3,029,512       3,053,805       2,999,969       2,969,864  
                       
    Commitments and Contingencies                  
                       
    Stockholders’ Equity                  
    Common stock – No par value 20,000,000 shares authorized; issued                  
    14,564,425 shares 3/31/25 and 12/31/24; outstanding 13,718,336 shares 3/31/25 and 13,699,536 shares 12/31/24   135,407       135,565       135,193       135,829       135,482  
    Treasury stock – 846,089 shares 3/31/25 and 864,889 shares 12/31/24   (10,768 )     (10,985 )     (10,904 )     (11,006 )     (10,851 )
    Retained earnings   240,079       235,854       230,465       226,430       223,648  
    Accumulated other comprehensive loss   (20,117 )     (25,223 )     (19,374 )     (28,589 )     (30,589 )
    Total stockholders’ equity   344,601       335,211       335,380       322,664       317,690  
                       
    Total Liabilities and Stockholders’ Equity $ 3,388,786     $ 3,364,723     $ 3,389,185     $ 3,322,633     $ 3,287,554  
                       
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    SELECT FINANCIAL DATA
                                   
        For the Three Months Ended
    Selected financial data   March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    Return on average assets     0.85 %     0.99 %     0.78 %     0.69 %     0.66 %
    Return on average equity     8.31 %     10.00 %     7.93 %     7.13 %     6.76 %
    Yield on earning assets     5.19 %     5.20 %     5.27 %     5.22 %     5.00 %
    Cost of interest bearing liabilities     2.76 %     3.01 %     3.21 %     3.18 %     3.06 %
    Net interest spread     2.43 %     2.19 %     2.06 %     2.04 %     1.94 %
    Net interest margin     3.03 %     2.84 %     2.71 %     2.71 %     2.60 %
    Efficiency ratio     66.79 %     59.82 %     67.98 %     69.03 %     74.08 %
    Dividend payout ratio     43.10 %     35.75 %     45.99 %     52.35 %     55.52 %
    Tangible book value per share   $ 17.71     $ 17.74     $ 17.72     $ 16.79     $ 16.51  
    Tier 1 leverage ratio     8.44 %     8.12 %     8.04 %     8.02 %     8.40 %
    Average shares outstanding     13,706,003       13,699,869       13,687,119       13,681,501       13,671,166  
                                   
    Loans   March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    (Dollar amounts in thousands)                              
    Commercial real estate   $ 1,325,698     $ 1,310,811     $ 1,301,160     $ 1,303,598     $ 1,304,400  
    Agricultural real estate     215,898       216,401       220,328       222,558       227,455  
    Consumer real estate     523,383       520,114       524,055       525,902       525,178  
    Commercial and industrial     278,254       275,152       260,732       268,426       256,051  
    Agricultural     153,607       152,080       137,252       142,909       127,670  
    Consumer     60,115       63,009       67,394       70,918       74,819  
    Other     24,985       24,978       25,916       26,449       26,776  
    Less: Net deferred loan fees, costs and other (1)     (36 )     (676 )     1,499       (1,022 )     (982 )
    Total loans, net   $ 2,581,904     $ 2,561,869     $ 2,538,336     $ 2,559,738     $ 2,541,367  
                                   
                                   
    Asset quality data   March 31, 2025   December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024
    (Dollar amounts in thousands)                              
    Nonaccrual loans   $ 4,494     $ 3,124     $ 2,898     $ 2,487     $ 19,391  
    90 day past due and accruing   $ –     $ –     $ –     $ –     $ –  
    Nonperforming loans   $ 4,494     $ 3,124     $ 2,898     $ 2,487     $ 19,391  
    Other real estate owned   $ –     $ –     $ –     $ –     $ –  
    Nonperforming assets   $ 4,494     $ 3,124     $ 2,898     $ 2,487     $ 19,391  
                                   
                                   
    Allowance for credit losses – loans   $ 26,352     $ 25,826     $ 25,484     $ 25,270     $ 24,680  
    Allowance for credit losses – off balance sheet credit exposures     1,281       1,541       1,661       1,928       1,946  
    Total allowance for credit losses   $ 27,633     $ 27,367     $ 27,145     $ 27,198     $ 26,626  
    Total allowance for credit losses/total loans     1.07 %     1.07 %     1.07 %     1.06 %     1.05 %
    Adjusted credit losses with accretable yield/total loans     1.08 %     1.08 %     1.10 %     1.10 %     1.11 %
    Net charge-offs:                              
    Quarter-to-date   $ 285     $ 4     $ 68     $ 15     $ 55  
    Year-to-date   $ 285     $ 142     $ 138     $ 70     $ 55  
    Net charge-offs to average loans                              
    Quarter-to-date     0.01 %     0.00 %     0.00 %     0.00 %     0.00 %
    Year-to-date     0.01 %     0.01 %     0.01 %     0.00 %     0.00 %
    Nonperforming loans/total loans     0.17 %     0.12 %     0.11 %     0.10 %     0.76 %
    Allowance for credit losses/nonperforming loans     586.38 %     826.70 %     879.37 %     1016.08 %     127.28 %
    NPA coverage ratio     586.38 %     826.70 %     879.37 %     1016.08 %     127.28 %
                                   
    (1) Includes carrying value adjustments of $1.7 million as of March 31, 2025, $1.1 million as of December 31, 2024, $3.0 million as of September 30, 2024, $612 thousand as of June 30, 2024, and $969 thousand as of March 31, 2024 related to interest rate swaps associated with fixed rate loans
                                   
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
    (in thousands of dollars, except percentages)
                       
                           
      For the Three Months Ended   For the Three Months Ended
      March 31, 2025   March 31, 2024
    Interest Earning Assets: Average Balance   Interest/Dividends   Annualized
    Yield/Rate    		   Average Balance   Interest/Dividends   Annualized
    Yield/Rate
    Loans $ 2,578,531   $ 37,072   5.75%   $ 2,577,114   $ 35,200   5.46%
    Taxable investment securities   458,519     2,739   2.39%     384,928     1,686   1.75%
    Tax-exempt investment securities   18,310     78   2.16%     21,109     86   2.06%
    Fed funds sold & other   105,770     1,113   4.21%     110,388     1,682   6.09%
    Total Interest Earning Assets   3,161,130   $ 41,002   5.19%     3,093,539   $ 38,654   5.00%
                           
    Nonearning Assets   166,630             159,240        
                           
    Total Assets $ 3,327,760           $ 3,252,779        
                           
    Interest Bearing Liabilities:                      
    Savings deposits $ 1,543,665   $ 8,564   2.22%   $ 1,443,530   $ 9,407   2.61%
    Other time deposits   627,498     5,424   3.46%     650,580     5,872   3.61%
    Other borrowed money   245,734     2,550   4.15%     263,280     2,689   4.09%
    Fed funds purchased & securities                      
    sold under agreement to repurchase   27,480     271   3.94%     28,458     284   3.99%
    Subordinated notes   34,828     284   3.26%     34,712     284   3.27%
    Total Interest Bearing Liabilities $ 2,479,205   $ 17,093   2.76%   $ 2,420,560   $ 18,536   3.06%
                           
    Noninterest Bearing Liabilities   509,190             514,986        
                           
    Stockholders’ Equity $ 339,365           $ 317,233        
                           
    Net Interest Income and Interest Rate Spread     $ 23,909   2.43%       $ 20,118   1.94%
                           
    Net Interest Margin         3.03%           2.60%
                           
    Yields on Tax exempt securities and the portion of the tax-exempt IDB loans included in loans have been tax adjusted based on a 21% tax rate in the charts    
                           
    FARMERS & MERCHANTS BANCORP, INC. AND SUBSIDIARIES
    AVERAGE BALANCE SHEETS AND RELATED YIELDS AND RATES
    (in thousands of dollars, except percentages)
                                       
      For the Three Months Ended March 31, 2025   For the Three Months Ended March 31, 2024
      As Reported   Excluding Acc/Amort Difference   As Reported   Excluding Acc/Amort Difference
      $ Yield   $ Yield   $ Yield   $ Yield   $ Yield   $ Yield
    Interest Earning Assets:                                  
    Loans $ 37,072 5.75 %   $ 36,468 5.66 %   $ 604 0.09 %   $ 35,200 5.46 %   $ 34,525 5.36 %   $ 675   0.10 %
    Taxable investment securities   2,739 2.39 %     2,739 2.39 %     – 0.00 %     1,686 1.75 %     1,686 1.75 %     –   0.00 %
    Tax-exempt investment securities   78 2.16 %     78 2.16 %     – 0.00 %     86 2.06 %     86 2.06 %     –   0.00 %
    Fed funds sold & other   1,113 4.21 %     1,113 4.21 %     – 0.00 %     1,682 6.09 %     1,682 6.09 %     –   0.00 %
    Total Interest Earning Assets   41,002 5.19 %     40,398 5.11 %     604 0.08 %     38,654 5.00 %     37,979 4.92 %     675   0.08 %
                                       
    Interest Bearing Liabilities:                                  
    Savings deposits $ 8,564 2.22 %   $ 8,564 2.22 %   $ – 0.00 %   $ 9,407 2.61 %   $ 9,407 2.61 %   $ –   0.00 %
    Other time deposits   5,424 3.46 %     5,424 3.46 %     – 0.00 %     5,872 3.61 %     5,872 3.61 %     –   0.00 %
    Other borrowed money   2,550 4.15 %     2,547 4.15 %     3 0.00 %     2,689 4.09 %     2,707 4.11 %     (18 ) -0.02 %
    Federal funds purchased and                                  
    securities sold under agreement to                                  
    repurchase   271 3.94 %     271 3.94 %     – 0.00 %     284 3.99 %     284 3.99 %     –   0.00 %
    Subordinated notes   284 3.26 %     284 3.26 %     – 0.00 %     284 3.27 %     284 3.27 %     –   0.00 %
    Total Interest Bearing Liabilities   17,093 2.76 %     17,090 2.76 %     3 -0.00 %     18,536 3.06 %     18,554 3.07 %     (18 ) -0.01 %
                                       
    Interest/Dividend income/yield   41,002 5.19 %     40,398 5.11 %     604 0.08 %     38,654 5.00 %     37,979 4.92 %     675   0.08 %
    Interest Expense / yield   17,093 2.76 %     17,090 2.76 %     3 -0.00 %     18,536 3.06 %     18,554 3.07 %     (18 ) -0.01 %
    Net Interest Spread   23,909 2.43 %     23,308 2.35 %     601 0.08 %     20,118 1.94 %     19,425 1.85 %     693   0.09 %
    Net Interest Margin   3.03 %     2.95 %     0.08 %     2.60 %     2.52 %     0.08 %
                                       
    Company Contact: Investor and Media Contact:
    Lars B. Eller
    President and Chief Executive Officer
    Farmers & Merchants Bancorp, Inc.
    (419) 446-2501
    leller@fm.bank    		 Andrew M. Berger
    Managing Director
    SM Berger & Company, Inc.
    (216) 464-6400
    andrew@smberger.com

    The MIL Network –

  • MIL-OSI Global: What Canada can learn from China on effectively engaging with Africa

    Source: The Conversation – Canada – By Isaac Odoom, Assistant Professor, Political Science, Carleton University

    Canada’s recent launch of a new Africa Strategy comes at a moment of profound geopolitical change and growing shifts in global development co-operation.

    As the western-led order and development model faces increasing scrutiny, countries like China are expanding their reach in Africa by linking development co-operation with commercial and strategic interests.

    These approaches resonate with many African governments, while others raise concerns, prompting an important question: How well does Canada’s new strategy respond to these concerns?



    Read more:
    Canada’s Africa strategy is a landmark moment for Canada-Africa relations, but still needs work

    Urgent need to diversify

    Canada’s pivot toward deeper engagement with Africa is timely. With ongoing tariff threats from the United States and a tense relationship with China, the need to diversify economic partnerships has become urgent.

    Africa’s fast-growing population, expanding middle class and continent-wide integration through the African Continental Free Trade Area (AfCFTA) offer real opportunities for commercial engagement.

    While historic, Canada’s new Africa Strategy would benefit from a clearer alignment between Africa’s economic prospects and Canada’s domestic economic challenges, such as labour shortages and trade diversification. Without a stronger economic dimension, Canada risks being perceived as all talk and little commitment.

    That said, Canada’s emphasis on “mutually beneficial partnerships” — echoing China’s language on Africa — is notable, especially as western donors pull back. However, without a coherent development focus, this principle may be viewed as transactional rather than strategic.

    The strategy provides a foundation to build from, but it enters a competitive arena. To build meaningful partnerships in Africa, Canada will need a more focused approach grounded in robust market research, sharper priorities and an informed understanding of Africa’s political and economic realities as well as its geopolitical context.

    As a researcher focused on Africa-China relations, I see important lessons Canada can draw from China’s engagement in Africa.

    Cautious Canada vs. confident China

    Over the past two decades, China has become Africa’s largest trading partner, with trade volumes reaching US$295 billion in 2024.

    Backed by state financing, Chinese firms have built roads, ports, railways, dams and telecom infrastructure across the continent. This presence is no accident: for the past 30 years, every Chinese foreign minister’s first trip abroad has been to Africa.

    Canada’s footprint, by contrast, remains modest. Canada’s merchandise trade with Africa was about $15 billion in 2024. Canada aspires to become a serious economic partner, but its commercial presence in Africa has been limited.

    Notably, while China is often criticized in western media, its image in Africa is more positive. Many African leaders and citizens see China as a pragmatic partner that delivers visible infrastructure and investment.

    China’s positioning as a fellow developing country also contrasts sharply with western models that often carry patronizing overtones. China’s readiness to finance large-scale projects in Africa with limited political strings attached has earned good will, even as concerns rightly persist about transparency, debt and governance.

    Emphasizing Canada’s differences

    Canada should take these dynamics seriously. The narrative of “countering China” in Africa, often promoted by western governments, is ineffective. It overlooks African agency, reduces the continent to a site of great power rivalry and fails to acknowledge that African governments are actively pursuing their choice of partners, instead of a single partner of choice.

    Rather than compete with China, Canada can be different. While Chinese infrastructure projects often align with African priorities, my own work on Chinese engagement in Ghana’s energy projects shows that these projects are often negotiated behind closed doors, with few accountability mechanisms and scant transparency in financing. These gaps create space for Canada to offer a distinct and credible alternative.

    Canada’s approach can be different, but it should be no less strategic. It may not match China in scale, but it can offer commercial partnerships rooted in transparency, accountability and collaboration with partners, including those from China.

    Many African governments and civil society entities are calling for exactly this kind of engagement, particularly as citizens demand greater scrutiny over foreign investment. By focusing on responsible business practices, labour standards, environmental safeguards and good governance, Canada can develop a values-based model of economic engagement.

    Despite this potential, Canada’s new Africa Strategy lacks financial commitment. Canada’s 2022 Indo-Pacific Strategy was backed by a $2.3 billion envelope. The Africa Strategy’s success will ultimately depend on its ability to mobilize concrete resources and sustained engagement.

    The strategy rightly points to Africa’s economic potential, but stronger links to Canada’s domestic priorities, such as a workforce strategy, a trade road map and implementation tools, would enhance its impact.

    References to the AfCFTA are promising, but Canadian businesses need clearer guidance and support. Realizing the strategy’s goals will require measurable targets, dedicated programming and sustained investment.

    A different kind of engagement

    Canada’s past engagement in Africa has been rooted in diplomacy, development co-operation and peacekeeping. These remain valuable, but today’s African leaders are also seeking trade, investment and private-sector partnerships.

    To become a trusted economic partner, Canada should engage with purpose by introducing targeted financing tools — such as credit lines or investment guarantees — to help Canadian businesses manage risk and seize opportunities aligned with AfCFTA.



    Read more:
    African countries could unlock billions in local and global trade – what’s working and what’s not

    It should also focus on strategic sectors where it already has strengths, like clean energy, health innovation, fintech, agri-business and infrastructure.

    By investing in robust research and in dialogue with the African diaspora, business leaders and governance institutions, Canada strengthens commercial ties while prioritizing transparency, accountability and collaboration. Co-operation in innovation (for example, joint research on climate-smart agriculture or vaccines) could also yield benefits for both sides.

    In an increasing multipolar environment, Africa is not waiting for Canada. It’s assessing and comparing competing external partners. Canada’s ability to position itself as a viable alternative depends not on replicating China’s scale, but on seeing Africa as a true partner and offering mutual partnerships that appeal to Africans and Canadian alike.

    The new Africa Strategy sets an important tone for renewed engagement, but its success will depend on real investment and implementation, which so far lacks dedicated funding. Filling these gaps should be the next step, regardless of who wins Monday’s election.

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

    – ref. What Canada can learn from China on effectively engaging with Africa – https://theconversation.com/what-canada-can-learn-from-china-on-effectively-engaging-with-africa-252894

    MIL OSI – Global Reports –

  • MIL-OSI USA: Lt. Governor Primavera Celebrates Colorado Filmmakers at Pueblo Film Festival; Nothing Safer Wins Award

    Source: US State of Colorado

    PUEBLO — This weekend, Lt. Governor Dianne Primavera joined filmmakers, artists, and local leaders at the 2025 Pueblo Film Festival to celebrate Colorado’s vibrant creative community and recognize outstanding achievements in independent film.

    “It was an incredible night celebrating the talent, heart, and hard work of Colorado’s creative community,” said Lt. Governor Primavera. “Nothing Safer represents the kind of fearless, purpose-driven storytelling that makes our state proud. It shines a light on second chances, healing, and the quiet strength of women and animals lifting each other up. Films like this remind us that art isn’t just entertainment — it’s a powerful tool for empathy, education, and change.”

    During the Steely Awards ceremony, the Lt. Governor joined director Cynthia Cazañas Garin of Nothing Safer on stage as they accepted the award for Best Heritage Short. The film was also nominated for Best Women in Film Short.

    The Lt. Governor also presented the Colorado Film Advocate of the Year Award to high school senior Sunny Wiggins for planning and executing a five-day film festival in March of this year.

    Nothing Safer is a documentary exploring Colorado’s Prison Trained K-9 Companion Program, where incarcerated women train rescue dogs.

    The film was produced by Colorado Lt. Governor Dianne Primavera, in collaboration with the Colorado Office of Film, Television, and Media, and the Colorado Department of Corrections.

    The film highlights how the program provides women with skills, self-esteem, and income, while also offering trained companion dogs to children with medical needs.

    It showcases the transformative impact of the program on both the inmates and the dogs they train.

    The film was screened during the festival, followed by a panel discussion in which Lt. Governor Primavera participated, offering remarks on the importance of second chances, rehabilitation, and Colorado’s commitment to inclusive opportunities across communities.

    “Nothing Safer is a story of redemption and empathy,” said Cynthia Cazanas Garin, the film’s director. “Creating pathways for incarcerated individuals to find meaning and purpose in their lives through service to others. I want to thank the Pueblo Film Fest for this recognition and Colorado Film Commissioner Donald Zuckerman for the opportunity to tell this extraordinary story. And a special acknowledgement for Colorado’s Lt. Governor Dianne Primavera, who had the creative idea and vision to make this film.”

    “Nothing Safer is a reflection of the transformative power of second chances,” said André Stancil, Executive Director of the Colorado Department of Corrections. “We are proud to support programs like the Prison Trained K-9 Companion Program because they not only change the lives of the participants and the animals they care for, but they also reflect the heart of our mission: rehabilitation, growth, and community connection. Nothing Safer helps to recognize the staff and program participants who make that vision real every day.”

    “By supporting films like Nothing Safer, we have the opportunity to elevate important Colorado stories, support our state’s filmmakers, and showcase our vibrant film industry,” said Donald Zuckerman, Colorado Film Commissioner. “We’re thrilled to see Director Cynthia Cazañas Garin recognized for bringing this incredible story to life.”

    In its second year, the Pueblo Film Festival continues to uplift local voices and foster connections among filmmakers, audiences, and advocates for the arts across Southern Colorado.

    ###

     

    MIL OSI USA News –

  • MIL-OSI USA: UConn Waterbury Joins Community to Dedicate The Neil O’Leary Building

    Source: US State of Connecticut

    A downtown Waterbury landmark has entered the next phase of its history as the new home of several UConn academic and research programs, complementing and expanding the wide range of offerings at the adjacent UConn Waterbury campus.

    It also has a new name: The Neil O’Leary Building, honoring the former longtime Waterbury mayor who shepherded the 130-year-old Odd Fellows Hall from ruin to renaissance in partnership with UConn, local and state officials, and the building’s owners.

    About 200 people, including scores of lifelong Waterbury residents, gathered last Thursday night at the building for the renaming and a ribbon-cutting event.

    It included an open house and dedication ceremony with welcoming remarks from local and regional leaders including Lt. Gov. Susan Bysiewicz, U.S. Rep. Jahana Hayes, Waterbury Mayor Paul Pernerewski Jr., and several others.

    “This is such an exciting time for UConn and our beautiful state, and this building is a testament to what’s possible,” Bysiewicz said of the six-story building, which had been unused and deteriorating for about 15 years before the restoration.

    Lt Gov. Susan Bysiewicz speaks at the dedication of the newly renovated historic building (Steve Bustamante / University of Connecticut)

    Green Hub Development III LLC purchased and renovated the landmark building through a public-private partnership, in which O’Leary was one of the most enthusiastic proponents. UConn is leasing about 26,300 square feet to expand the University’s offerings in nursing, allied health, and other programs.

    Thursday night’s event celebrated not only UConn Waterbury’s growing downtown presence, but also O’Leary’s vision as the driving force in the rescue, restoration, and reuse of the once-crumbling historic structure.

    “Mayor O’Leary recognized the potential of this structure when many considered it beyond saving,” said Fumiko Hoeft, UConn Waterbury’s dean and chief administrative officer.

    “His vision – combined with the University’s leadership and strong partners – brought it back to life. Today, it stands ready to serve the community and generations of UConn students.”

    Just a few years ago, O’Leary knew it might be a hard sell to convince others of the potential he’d long seen in the structure.

    He laughed Thursday as he recalled shepherding UConn leaders through its dank, crumbling hallways – all wearing hard hats and face masks, led by flashlights, and carrying umbrellas to shield them from the rain that came in through the roof’s many holes.

    Today, the building is pristine, bright, and welcoming.

    It’s home to UConn’s clinic-style nursing and health care simulation rooms, research facilities, study lounges, office and administrative space, a spacious former banquet room, and other areas suitable for maker space, incubator studios, classes, and large gatherings.

    The building also houses Access Rehab Centers, which held an open house during Thursday night’s event; and is home to the Waterbury Robotics Institute, a collaboration between UConn and Waterbury Public Schools.

    Although speaker after speaker at Thursday night’s event lauded O’Leary, he said credit also goes to a wide range of partners that include Hoeft, UConn President Radenka Maric, UConn trustees Tom Ritter and Marilda Gandara, Waterbury’s current administration and legislative delegation, and many others.

    “At the end of the day, what’s important is what we can do for the city’s and the state’s greatest assets – and that’s our students,” O’Leary said. “We must do everything in our power to support our rising students, and our partnership between our city and UConn is so strong.”

    The six-story building, originally built for the local chapter of the International Order of Odd Fellows social group, is in a prime downtown location and dates to 1895.

    UConn Waterbury Campus Dean Fumiko Hoeft (Steve Bustamante / University of Connecticut)

    Its renovation was funded through a state grant to the City of Waterbury along with Green Hub’s private funding. It was modernized for today’s needs while retaining key elements of its history, including Venetian Gothic exterior features overlooking the Waterbury Green and the ornate ceiling in its former banquet hall.

    UConn’s plan to expand its nursing education programs into the building is particularly noteworthy given the high demand in that profession, both statewide and specifically in Waterbury and the Naugatuck Valley region.

    Maric, a frequent and enthusiastic visitor to UConn Waterbury, said Thursday night that the connections between the University and community go beyond the renovation of the Neil O’Leary Building.

    “This is about vision, community, and unity … There’s something very special about this place, as a working-class community whose residents care deeply for each other,” Maric said.

    The growth of UConn Waterbury’s campus and academic offerings also complements the UConn Strategic Plan, which includes ensuring that the campuses in Waterbury, Hartford, Stamford, and Avery Point offer signature programs that are destinations within UConn.

    UConn’s Board of Trustees approved the expansion plans in 2023, which are part of a larger commitment to strengthen the University’s presence and partnerships in the Naugatuck Valley.

    They include UConn’s deep involvement in the Waterbury Promise scholarship program, under which many dozens of Waterbury graduates are attending the University; and the establishment and growth of the allied health sciences major on the campus.

    UConn Waterbury also prides itself on providing a tight-knit community that serves students’ individual needs while ensuring they can access world-class UConn programs in undergraduate and graduate-level fields that lead to strong, satisfying career paths.

    UConn Waterbury’s new space in the Neil O’Leary Building will be ideal for serving current students while also advancing community partnerships with schools, the City of Waterbury, the regional business community, and other groups.

    The 26,000 square feet of academic, research, and community space that UConn is leasing also provides resources for humanities and social sciences.

    That includes the HACER Lab, a hub for humanistic inquiry, research, and pedagogy developed in collaboration with Waterbury students and community partners; the Ideas + Impact initiative; and other learning communities focused on social impact, sustainability, and health-related projects.

    These facilities will be used by programs in nursing, allied health, psychological sciences, urban and community studies, humanities and social sciences, business, and community partnerships.

    Former Waterbury Mayor Neil O’Leary. (Steve Bustamante / University of Connecticut)

    Additionally, it will serve as the home for the Haskins Global Literacy Hub, a newly formed partnership between Yale, UConn Global Affairs, and UConn Waterbury focused on promoting education and conducting innovative research to enhance literacy globally.

    The Odd Fellows Building has a rich history in the City of Waterbury, and its restoration and use by UConn carries strong emotional and economic significance to the area.

    Built at a cost of $100,000 and said to be among the finest of its time in the region, the building’s opening in 1895 drew more than 5,000 members of the group from around the East Coast and was featured in the New York Times.

    In fact, the opening was marked by a parade and the event was so important to the city that all factories and schools were closed for the day, and all business shut down at noon, according to another Times article.

    A clothing store occupied the first floor for about its first five years in addition to the meeting rooms and social spaces used by the Odd Fellows and others on the higher floors. Later, the popular Grieve, Bissett & Holland department store was in the building from 1902 until the mid-1960s.

    Pernerewski, who joked that his role as Waterbury’s current mayor includes many ribbon-cuttings at projects that O’Leary initiated during his tenure, said Thursday that the building’s revival is symbolic: Just as O’Leary envisioned a promising future for a crumbling building, that building now provides a promising future for those who will use it.

    “Where others saw obstacles, Neil always saw potential. That’s exactly what he saw in this building: a structure that had seen better days, but which could be brought back to life and serve this community in a powerful way,” Pernerewski said.

    “This building and all it’s going to bring to UConn Waterbury and to our city is a reflection of Neil’s vision for Waterbury: bold, hopeful, and committed to progress.”

    MIL OSI USA News –

  • MIL-OSI USA: Update: DEQ works to resolve cyber attack

    Source: US State of Oregon

    Update (4/13/2025 at 8:15 p.m.): DEQ brings vehicle inspection stations back online in Medford and Portland area.

    DEQ and the Department of Administrative Services Enterprise Information Services worked through the weekend to address the cyber issues.

    As a result, vehicle inspection stations are securely back online. The Medford station opens Monday, April 14 at 8:30 a.m. The Portland area stations are also open their regular hours, which start Tuesday, April 15. Check DEQ’s website for specific station days and hours of operation. Please expect stations to be busier than usual.

    DEQ Too locations are not yet back online.

    Other information:

    • There continues to be no evidence of a data breach.
    • DEQ is able to receive and send emails. Please be patient as staff work through a backlog of messages.
    • Your DEQ Online continues to be available to regulated entities in the public. Only the help desk has been affected and is currently unavailable.

    Update (4/11/2025 at 4:00 p.m.): DEQ continues to work with the Department of Administrative Services Enterprise Information Services and Microsoft cybersecurity team to address cybersecurity issues.

    Key information:

    • There continues to be no evidence of a data breach.
    • DEQ is prioritizing re-establishing vehicle inspection station services.
    • DEQ is not receiving or able to send emails. If you need to reach someone at DEQ, please reach out by phone.
    • Your DEQ Online continues to be available to regulated entities in the public. Only the help desk has been affected and is currently unavailable.

    Staff are working around the clock to restore services and it may still be several days before business returns to normal.

    Update (4/10/2025 | 2:00 p.m.): DEQ is continuing to work with Enterprise Information Services and Microsoft’s cybersecurity team to analyze and resolve the cyber issue.

    At this time there is no evidence of a data breach.

    DEQ’s systems will continue to be down. This includes all email. The agency confirmed it has not been able to receive or send emails. If you need to reach someone at DEQ, contact them by phone.

    VIP stations will be closed today, tomorrow and Saturday, April 12.

    As previously stated, Your DEQ Online, DEQ’s environmental data information management system is hosted on a separate server, has not been impacted, and will continue to be operational

    Staff are working around the clock to restore services and it may still be several days before business returns to normal.

    Update (4/9/2025 | 5:50 p.m.): Enterprise Information System and Microsoft’s cybersecurity team are working to analyze and resolve the cyber issues. DEQ’s systems will continue to be down through the end of the week and vehicle inspection stations will also be closed Thursday and Friday, April 10 and 11.

    Your DEQ Online, DEQ’s environmental data management system, is hosted on a separate server, has not been impacted and will continue to be operational.

    Update (4/9/2025 | 10:50 a.m.): Enterprise Information Services is investigating a cyberattack within the Oregon Department of Environmental Quality. We are in the process of shutting down networks to provide isolation for the agency servers and network until the attack is totally contained and potentially eradicated. Our next update will be at the end of the day or as significant events unfold.

    We apologize for any inconvenience this causes. DEQ will provide more information as it becomes available.

    MIL OSI USA News –

  • MIL-OSI Security: Philadelphia Man Charged With Two Armed Carjackings, Two Commercial Robberies, and Gun Crimes

    Source: Office of United States Attorneys

    PHILADELPHIA – United States Attorney David Metcalf announced that Azzubayr Ibn Abdul Josey, 23, of Philadelphia, Pennsylvania, was arrested and charged by indictment with two counts of carjacking, two counts of carrying, using, and brandishing a firearm during and in relation to a crime of violence, two counts of robbery which interferes with interstate commerce (Hobbs Act robbery), and one count of possession of a stolen firearm.

    The defendant was arrested this morning and made his initial appearance in Magistrate Court before the Honorable Scott W. Reid.

    As alleged in the indictment, on November 9, 2024, Josey carjacked a 2011 Toyota Sienna in Philadelphia at gunpoint. Then on November 24, 2024, he is alleged to have carjacked a 2006 Honda Civic in Philadelphia, again at gunpoint. The same day, the defendant allegedly robbed a Family Dollar in West Philadelphia, where he simulated that he had a firearm. Finally, on November 25, 2024, Josey is alleged to have robbed a CVS in West Philadelphia, again simulating that he had a firearm.

    The indictment also alleges that the defendant possessed a stolen firearm on December 11, 2024.

    If convicted, the defendant faces a maximum possible sentence of life imprisonment and a mandatory minimum sentence of 14 years’ imprisonment.

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

    The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Robert E. Eckert and Special Assistant United States Attorney David Osborne.

    The charges and allegations contained in the indictment are merely accusations. Every defendant is presumed to be innocent unless and until proven guilty in court.

    MIL Security OSI –

  • MIL-OSI: Capital Bancorp, Inc. Announces Strong First Quarter Results and Successful IFH Conversion; Continued Strong Organic Loan and Deposit Growth; NIM and Fee Income Drives Robust Returns

    Source: GlobeNewswire (MIL-OSI)

    First Quarter 2025 Highlights

    • Net Income of $13.9 million, or $0.82 per share, and return on average assets (“ROA”) of 1.75%
      • Core net income(1) of $14.9 million, or $0.88 per share, and core ROA(1) of 1.87%
    • Book value per common share of $22.19 at March 31, 2025, increased $0.87 compared to 4Q 2024, and increased $3.51 when compared to 1Q 2024.
      • Tangible Book Value Per Share(1) of $19.81, increased 3.7% (not annualized), or $0.71(2) as compared to 4Q 2024, and increased 6.0%, or $1.13 compared to 1Q 2024
    • Return on average equity (“ROE”) of 15.56%, and return on average tangible common equity (“ROTCE”)(1) of 17.57%
      • Core ROE(1) of 16.64%, and core ROTCE(1) of 18.77%
    • Gross Loans grew $48.2 million, or 7.4% (annualized), during 1Q 2025, and growth of $713.9 million year-over-year including $340.4 million from organic growth and $373.5 million from the IFH acquisition
    • Total Deposits grew $129.4 million, or 19.0% (annualized), from 4Q 2024. Year-over-year growth of $885.6 million includes $426.7 million from organic growth, and $459.0 million from the acquisition of IFH, or 44.2% from 1Q 2024
      • Customer Deposit growth of $154.6 million, or 25.8% (annualized) from 4Q 2024, and $738.5 million year-over-year, or 40.0% from 1Q 2024, including $445.0 million of organic growth, and $293.5 million from the acquisition of IFH
    • Net Interest Income increased $1.7 million, or 3.9% (not annualized), from 4Q 2024 due to balance sheet growth and purchase accounting accretion, and increased $11.0 million, or 31.5%, year-over-year, primarily driven by strong organic growth and the acquisition of IFH.
    • Net Interest Margin (“NIM”) of 6.05% increased 18 bps compared to 4Q 2024 and decreased 19 bps compared to 1Q 2024 due to the acquisition of commercial loans from IFH, diluting the impact from OpenSky™
      • Commercial Bank NIM(1) of 4.32% increased by 33 bps and 55 bps, compared to 4Q 2024 and 1Q 2024, respectively
      • Net purchase accounting accretion of $1.5 million for 1Q 2025, increased $0.8 million compared to 4Q 2024, accounting for 20 bps of both reported NIM and Commercial Bank NIM(1)
    • Fee Revenue (noninterest income) totaled $12.5 million, or 21.4% of total revenue for 1Q 2025, an increase of $0.6 million, from 4Q 2024 and $6.6 million, from 1Q 2024
    • The allowance for credit losses to total loans (“ACL Coverage Ratio”) equaled 1.81% at March 31, 2025 down 4 bps from 4Q 2024 and up 32 bps from 1Q 2024, primarily due to of the acquisition of IFH loans. The Commercial Bank ACL Coverage Ratio(1) equaled 1.67% at March 31, 2025, compared to 1.70% at December 31, 2024.
    • Cash Dividend of $0.10 per share declared by the Board of Directors

    ________________________
    (1) As used in this press release, core net income, core ROA, core ROE, ROTCE, core ROTCE, Commercial Bank NIM, Commercial Bank ACL Coverage Ratio, and Tangible Book Value are non–U.S. generally accepted accounting principles (“GAAP”) financial measures. These non-GAAP financial metrics exclude merger-related and other certain one-time non-reoccurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
    (2) 4Q 2024 Tangible Book Value restated to $19.10 from previously reported amount of $18.77 due to exclusion of Loan Servicing Assets.

    ROCKVILLE, Md., April 28, 2025 (GLOBE NEWSWIRE) — Capital Bancorp, Inc. (the “Company”) (NASDAQ: CBNK), the holding company for Capital Bank, N.A. (the “Bank”), today reported net income of $13.9 million, or $0.82 per diluted share, for 1Q 2025, compared to net income of $7.5 million, or $0.45 per diluted share, for 4Q 2024, and $6.6 million, or $0.47 per diluted share, for 1Q 2024. Core net income(3) for 1Q 2025 of $14.9 million, or $0.88 per diluted share, compared to $15.5 million, or $0.92 per diluted share in 4Q 2024.

    The Company also declared a cash dividend on its common stock of $0.10 per share. The dividend is payable on May 28, 2025 to shareholders of record on May 12, 2025.

    “The first quarter continues the momentum from 2024 and further demonstrates the value of the larger and more diversified franchise resulting from the acquisition of IFH,” said Ed Barry, CEO of the Company and the Bank. “I would like to thank Management and the teams across the organization for a successful integration of IFH in the first quarter. Our continued focused execution of our initiatives and growth objectives will build on a great start to 2025.”

    “Our record GAAP earnings per share for the quarter, increased net interest margin, solid loan and deposit growth, and superior return on tangible equity all confirm that we are on the right course for continued growth. We continue to benefit from our diversified earnings platform, both in terms of overall performance and risk mitigation,” said Steven J. Schwartz, Chairman of the Company. “That said, we intend to continue to monitor closely the possible impact on our businesses from emergent governmental policies, with a view towards insulating ourselves, to the extent we can, from the effects of such policies, including interest rate and price volatility and heightened economic uncertainty.”

    Reconciliation of GAAP Net Income to Core (Non-GAAP) Net Income
    The following table provides a reconciliation of the Company’s net income under GAAP to Core net income (non-GAAP) results excluding merger-related expenses and other one-time non-recurring transactions.

      First Quarter 2025   Fourth Quarter 2024
    (in thousands, except per share data) Income
    Before
    Income
    Taxes    		   Income
    Tax
    Expense    		   Net
    Income    		   Diluted
    Earnings
    per
    Share    		   Income
    Before
    Income
    Taxes    		   Income
    Tax
    Expense    		   Net
    Income    		   Diluted
    Earnings
    per
    Share
    GAAP Net Income $ 18,297   $ 4,365   $ 13,932   $ 0.82   $ 10,776   $ 3,243   $ 7,533   $ 0.45
    Add: Merger-Related Expenses   1,266     302     964         2,615     464     2,151    
    Add: Non-recurring Equity and Debt Investment Write-Down   —     —     —         2,620     —     2,620    
    Add: Initial IFH ACL Provision   —     —     —         4,194     1,025     3,169    
    Core Net Income(1) $ 19,563   $ 4,667   $ 14,896   $ 0.88   $ 20,205   $ 4,732   $ 15,473   $ 0.92

    Note: The income tax expense reflects the non-deductibility of certain merger-related expenses.

    ________________________
    1 As used in this press release, core net income is a non-GAAP financial measure. This non-GAAP financial metric excludes merger-related and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.


    First Quarter 2025 Results

    Earnings Summary
    Net income of $13.9 million, or $0.82 per diluted share, compared to net income of $7.5 million, or $0.45 per diluted share, for 4Q 2024, and $6.6 million or $0.47 per diluted share, for 1Q 2024. 1Q 2025 core net income(4) of $14.9 million, or $0.88 per diluted share, compared to 4Q 2024 of $15.5 million, or $0.92 per diluted share.

    • Net interest income of $46.0 million increased $1.7 million, or 3.9% (not annualized), compared to 4Q 2024, and increased $11.0 million, or 31.5% year-over-year.
      • Interest income of $62.8 million increased $1.1 million, or 1.7% (not annualized), over 4Q 2024, and increased $14.4 million, or 29.8%, year-over-year. The increase quarter-over-quarter was driven by increases of $1.1 million from net purchase accounting accretion, $0.7 million from interest-bearing deposits held at other financial institutions, and $0.3 million from investments held for sale, partially offset by a decrease in loan interest income of $1.1 million due to rate and portfolio mix, while the increase year-over year was primarily driven by organic growth and the acquisition of IFH.
        • Interest income included $0.4 million from net purchase accounting accretion in 1Q 2025 compared to $0.7 million from net purchase accounting amortization in 4Q 2024. There was no related purchase accounting accretion or amortization during 1Q 2024.
      • Interest expense of $16.7 million decreased $0.7 million, or 3.8% (not annualized) compared to 4Q 2024, and increased $3.4 million, or 25.1%, year-over-year. The decrease quarter-over-quarter was primarily due to a decrease in borrowed funds partially offset by lower net purchase accounting accretion, and the increase year-over-year was driven by organic growth and the acquisition of IFH.
        • Interest expense included $1.1 million from net purchase accounting accretion in 1Q 2025 compared to $1.4 million from net purchase accounting accretion in 4Q 2024. There was no related purchase accounting accretion or amortization during 1Q 2024.
    • The provision for credit losses was $2.2 million, a decrease of $5.6 million from 4Q 2024. The decrease over the prior quarter was primarily driven by the recognition of the Initial IFH ACL Provision of $4.2 million in 4Q 2024, and a $2.0 million lower provision from the commercial loan portfolio partially offset by an additional $0.6 million from OpenSky™ provision in the current quarter. Net charge-offs totaled $2.4 million, or 0.38% of portfolio loans (annualized), including $2.3 million from OpenSky™ loans. By comparison net charge-offs for 4Q 2024 totaled $2.4 million, or 0.37% of portfolio loans (annualized), including $2.1 million from OpenSky™ loans. At March 31, 2025, the ACL Coverage Ratio was 1.81%, down 4 bps from the ratio of 1.85% at December 31, 2024, due to the payoff of certain purchase credit deteriorated (“PCD”) loans acquired from IFH, during the quarter. The provision for credit losses decreased $0.5 million, year-over-year (1Q 2024) primarily from lower commercial loan portfolio provision of $0.7 million, offset by slightly higher provision for OpenSky™ of $0.2 million, while the ACL Coverage Ratio increased 32 bps year-over-year driven by the acquisition of IFH.

    ________________________
    1 As used in this press release, core net income is a non-GAAP financial measure. This non-GAAP financial metric excludes merger-related and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of this and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.


    Earnings Summary (Continued)

    • Noninterest income of $12.5 million increased $0.6 million compared to 4Q 2024 and increased $6.6 million year-over-year primarily due to the contributions made by the businesses IFH brought to the merged entity. Core fee revenue(5) of $12.5 million decreased $2.0 million, as a result of $1.2 million lower government lending revenue, $0.8 million lower SBIC investment income, $0.5 million lower loan servicing, $0.4 million lower government loan servicing revenue (Windsor), offset by a loan termination fee of $0.7 million during 1Q 2025.
    • Noninterest expense of $38.1 million increased $0.5 million compared to 4Q 2024 and $8.6 million compared to 1Q 2024. Core noninterest expense(1) of $36.8 million increased $1.9 million compared to 4Q 2024 and $8.0 million compared to 1Q 2024. Core comparisons include:
      • Salaries and employee benefits expenses increased $1.6 million from 4Q 2024, primarily the result of $0.7 million lower deferred expenses related to loan production, $0.6 million from the seasonality of payroll related taxes, and $0.2 million in employee benefits.
      • Marketing expenses increased $0.7 million from 4Q 2024, primarily due to additional OpenSky™ advertising-related expenses due to seasonality.
      • Regulatory assessment expenses increased $0.4 million from 4Q 2024, primarily due to additional assessments from the acquisition of IFH.
      • Expense reduction of $0.8 million from 4Q 2024, includes $0.3 million from loan processing, $0.2 million from other operating, and $0.3 million from other areas.
      • Year-over-year expense growth of $8.6 million was primarily due to the acquisition of IFH.
      • Estimated total cost synergies resulting from the acquisition of IFH totaled $1.75 million in 1Q 2025, achieving the targeted savings earlier than anticipated.
    • Income tax expense of $4.4 million, or 23.9% of pre-tax income for 1Q 2025, increased $1.1 million from $3.2 million, or 30.1% of pre-tax income for 4Q 2024. The core effective income tax rate(1) for 1Q 2025 and 4Q 2024 would have been 23.7% and 22.6%, respectively.

    ________________________
    1 As used in this press release, core fee revenue, core noninterest expense, and core effective income tax rate are non-GAAP financial measures. These non-GAAP financial metrics exclude merger-related and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.


    Balance Sheet
    Total assets of $3.3 billion at March 31, 2025 increased $142.9 million, or 18.1% (annualized), from December 31, 2024. Total assets growth year-over-year of $1.0 billion, or 44.1%, included $559.4 million acquired with the IFH acquisition, net of purchase accounting, and $465.6 million of organic growth.

    • Cash and cash equivalents of $294.0 million at March 31, 2025 increased $88.7 million from December 31, 2024 due to portfolio growth, and increased $208.8 million year-over-year including $130.9 million from organic growth and $77.8 million from the acquisition of IFH.
    • Total portfolio loans of $2.68 billion at March 31, 2025 increased $48.2 million, or 7.4% (annualized), from December 31, 2024 and increased $713.9 million year-over-year including $373.5 million from the acquisition of IFH and $340.4 million of organic growth.
      • Compared to December 31, 2024, commercial and industrial loans increased $39.8 million and construction real estate loans increased $22.0 million, offset by a $9.1 million decrease in OpenSky™ loans and a $6.3 million decrease in commercial real estate loans.
      • Commercial and industrial loans, and owner-occupied commercial real estate loans totaled 37.9% of total portfolio loans at March 31, 2025, compared to 37.8% at December 31, 2024, and 29.6% at March 31, 2024.
    • Total deposits of $2.89 billion at March 31, 2025 increased $129.4 million, or 19.0% (annualized), from December 31, 2024, and increased $885.6 million, or 44.2% (annualized) from March 31, 2024. The increase quarter-over-quarter includes $95.7 million of growth in customer money market deposits, $57.6 million of growth in interest-bearing demand accounts, $1.3 million of noninterest-bearing deposits, and $0.7 million of customer time deposits, partially offset by a decrease in brokered time deposits of $25.2 million. The increase year-over-year is driven by $459.0 million from the acquisition of IFH and $426.7 million from organic growth.
      • Insured and protected deposits were approximately $2.0 billion as of March 31, 2025 representing 70.4% of the Company’s deposit portfolio.
      • Low-and-no interest bearing deposits of $1.1 billion, or 38.8% of deposits, increased $58.2 million, or 22.2% (annualized) from December 31, 2024, and increased $257.2 million, or 29.8% year-over-year, including $157.4 million of organic growth, and $91.5 million from the acquisition of IFH.
    • The average portfolio loans-to-deposit ratio was 95.15% for the three months ended March 31, 2025, compared to 99.27% from 4Q 2024, and 98.46% from 1Q 2024.
    • The investment securities portfolio continues to be classified as available-for-sale and had a fair market value of $213.5 million, or 6.4% of total assets, an effective duration of 3.0 years, with U.S. Treasury Securities representing 56% of the overall investment portfolio at March 31, 2025. The accumulated other comprehensive income (loss) on the investment securities portfolio decreased $2.3 million during the quarter to negative $9.2 million after-tax as of March 31, 2025, which represents 2.5% of total stockholders’ equity. The Company does not have a held-to-maturity investment securities portfolio.
    • Liquidity – The Company maintains stable and reliable sources of available borrowings, generally consistent with prior quarter. Sources of available borrowings at March 31, 2025 totaled $820.9 million, compared to $803.0 from 4Q 2024. During 1Q 2025 available collateralized lines of credit of $625.4 million, unsecured lines of credit with other banks of $76.0 million and unpledged investment securities available as collateral for potential additional borrowings of $119.5 million.
    • Capital Positions – As of March 31, 2025, the Company reported a Common Equity Tier-1 capital ratio of 13.33%, compared to 13.74% at December 31, 2024. At March 31, 2025, the Company and the Bank maintain regulatory capital ratios that exceed all capital adequacy requirements.

    Financial Metrics
    Net Interest Margin – Net interest margin of 6.05% for the three months ended March 31, 2025, increased 18 bps compared to the prior quarter, and decreased 19 bps year-over-year. Commercial Bank net interest margin(1), of 4.32% increased 33 bps compared to the prior quarter, and increased 55 bps year-over-year. Net purchase accounting accretion for 1Q 2025 was 20 bps for NIM and Commercial Bank NIM(1).

    • The average yield on interest earning assets of 8.24% increased 7 bps compared to the prior quarter, due to portfolio mix, and decreased 39 bps year-over-year primarily due to the acquisition of commercial loans diluting the impact from OpenSky™. The Commercial Bank Loan Yield(1) of 7.14% for 1Q 2025, increased 16 bps 4Q 2024, and increased 18 bps year-over-year.
    • The total cost of deposits of 2.42% for 1Q 2025 decreased 8 bps compared to the prior quarter due to rate and mix shift and decreased 22 bps year-over-year. The total cost of interest-bearing deposits decreased 9 bps quarter-over-quarter, and 54 bps year-over-year, to 3.37% for 1Q 2025 due to rate environment and product mix.
    • Net purchase accounting accretion of $1.5 million during 1Q 2025, increased $0.8 million from 4Q 2024. There was no related purchase accounting accretion or amortization during 1Q 2024.

    Efficiency Ratios – The efficiency ratio was 64.9% for the three months ended March 31, 2025, compared to 66.7% for the three months ended December 31, 2024 and 72.0% for the three months ended March 31, 2024. The core efficiency ratio(6) was 62.8%, for the three months ended March 31, 2025. The core efficiency ratio(1) was 59.3% for the three months ended December 31, 2024, and 70.2% for the three months ended March 31, 2024.

    Credit Metrics and Asset Quality – The ACL Coverage Ratio equaled 1.81% at March 31, 2025, a decrease of 4 bps from December 31, 2024, and an increase of 32 bps year-over-year driven by the acquisition of IFH.

    Nonperforming assets increased 27 bps to 1.21% of total assets at March 31, 2025 compared to December 31, 2024, and increased 59 bps year-over-year. Total nonaccrual loans at March 31, 2025 increased $10.2 million to $40.5 million compared to December 31, 2024, and increased $26.1 million year-over-year, mainly due to the acquisition of IFH. At March 31, 2025, special mention loans totaled $63.0 million, or 2.4% of total portfolio loans, compared to $60.0 million, or 2.3% of total portfolio loans, at December 31, 2024, and $27.5 million, or 1.4% of total portfolio loans, at March 31, 2024. At March 31, 2025, substandard loans totaled $45.7 million, or 1.7% of total portfolio loans, compared to $48.4 million, or 1.8% of total portfolio loans, at December 31, 2024 and $14.1 million, or 0.7% of total portfolio loans, at March 31, 2024.

    ________________________
    1 As used in this press release, Commercial Bank NIM, Commercial Bank Loan Yield, and core efficiency ratio are non-GAAP financial measures. These non-GAAP financial metrics exclude merger-related and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.

    Financial Metrics (Continued)
    Performance Ratios – ROA, ROE, ROTCE were 1.75%, 15.56%, and 17.57% respectively, for the three months ended March 31, 2025, compared to 0.96%, 8.50%, and 9.33%(1) respectively, for the three months ended December 31, 2024. For the three months ended March 31, 2024, ROA, ROE, and ROTCE were 1.15%, 10.19%, and 10.19%, respectively. As of March 31, 2024, the Company did not have goodwill or other intangible assets.

    • Core ROA(2), core ROE(2), and core ROTCE(2) for the three months ended March 31, 2025 were 1.87%, 16.64%, and 18.77% respectively. Core ROA(2), core ROE(2), and core ROTCE(2) for the three months ended December 31, 2024, were 1.97%, 17.46%, and 18.91%(1), respectively. Core ROA(2), core ROE(2), and core ROTCE(2) for the three months ended March 31, 2024 were 1.24%, 11.03%, and 11.03%, respectively.

    Book Value and Tangible Book Value – Book value per common share of $22.19 at March 31, 2025, increased $0.87 when compared to December 31, 2024, and increased $3.51 when compared to March 31, 2024. Tangible book value per common share(2) increased $0.71(3), or 3.7%, to $19.81 at March 31, 2025 when compared to December 31, 2024, and increased $1.13, or 6.0%, when compared to March 31, 2024. Tangible book value was impacted by the purchase accounting adjustments required as part of the IFH acquisition. Therefore, tangible book value per share(1) was equal to book value per share for periods prior to 4Q 2024.

    ____________
    1 Core ROTCE and core ROTCE for the three months ended December 31, 2024 were restated to 9.33% and 18.91%, respectively, from 9.47% and 19.19%, due to exclusion of Loan Servicing Assets.
    2 As used in this press release, core ROA, core ROE, ROTCE, core ROTCE, and Tangible Book Value are non-GAAP financial measures. These non-GAAP financial metrics exclude merger-related and other certain one-time non-recurring pre-tax adjustments and tax impacts of such adjustments. Reconciliations of these and other non–GAAP measures to their comparable GAAP measures are set forth in the Appendix at the end of this press release.
    3 4Q 2024 Tangible Book Value restated to $19.10 from previously reported amount of $18.77 due to exclusion of Loan Servicing Assets.


    Commercial Bank
    Continued Portfolio Loan Growth – Gross portfolio loans increased $55.6 million at March 31, 2025 compared to December 31, 2024, including $39.8 million of commercial and industrial loans, and $22.0 million of construction real estate loans. Historical gross portfolio loan balances are disclosed in the Composition of Loans table within the Historical Financial Highlights.

    Net Interest Income – Interest income of $48.2 million increased $2.1 million from the prior quarter, driven by loan growth and higher loan yields. Interest expense of $16.6 million decreased $0.6 million, resulting from a decrease in the average balance of borrowings in 1Q 2025.

    Credit Metrics – Nonperforming assets, comprised solely of nonaccrual loans, increased 27 bps to 1.21% of total assets at March 31, 2025 compared to December 31, 2024. Total nonaccrual loans at March 31, 2025 increased to $40.5 million compared to $30.2 million at December 31, 2024.

    Classified and Criticized Loans – At March 31, 2025, special mention loans totaled $63.0 million, or 2.4% of total portfolio loans, compared to $60.0 million, or 2.3% of total portfolio loans, at December 31, 2024. At March 31, 2025, substandard loans totaled $45.7 million, or 1.7% of total portfolio loans, compared to $48.4 million, or 1.8% of total portfolio loans, at December 31, 2024.

    OpenSky™
    Accounts – During 1Q 2025, the number of credit card accounts of 563.7 thousand increased by 11.2 thousand, or 2.0% (not annualized) from December 31, 2024, and increased 36.8 thousand, or 7.0% year-over-year.

    Loan and Deposit Balances – Loan balances, net of reserves, of $118.7 million at March 31, 2025 decreased by $9.1 million, or 28.7% (annualized), compared to December 31, 2024. Corresponding deposit balances of $168.8 million at March 31, 2025 increased $2.4 million, or 6.0% (annualized), compared to December 31, 2024. Gross unsecured loan balances of $39.0 million at March 31, 2025 decreased $3.4 million, or 32.9% (annualized), compared to $42.4 million at December 31, 2024, and increased $10.5 million year-over-year.

    Revenues – Total revenue of $18.2 million decreased $1.0 million from the prior quarter. Interest income of $14.4 million decreased $1.0 million from the prior quarter. Average OpenSky™ credit card loan balances, net of reserves and deferred fees of $118.7 million for 1Q 2025, decreased $2.3 million, or 1.9% (not annualized), compared to the prior quarter. Noninterest income of $3.7 million remained generally consistent compared to the prior quarter.

    Noninterest Expense – Total noninterest expense of $13.3 million decreased $0.7 million, primarily related to advertising related expenses due to seasonality.

    OpenSky™Credit – Portfolio credit metrics continue to be generally consistent with modeled expectations during 1Q 2025. The provision for credit losses of $1.8 million increased $0.6 million when compared to the prior quarter. OpenSky’s unsecured loan product continues to be offered exclusively to current and former secured card customers in order to retain customer who have successfully improved their credit profiles. Unsecured loans have been offered by OpenSky since the fourth quarter of 2021 and have performed according to management expectations over that time period.

    Capital Bank Home Loans
    Originations of loans held for sale totaled $65.8 million during 1Q 2025, with $54.1 million of mortgage loans sold resulting in a gain on sale of loans of $1.7 million, representing a 3.07% of gain on sale as a percentage of total loans sold. Originations of loans held for sale totaled $90.0 million during 4Q 2024, with $77.4 million of mortgage loans sold resulting in a gain on sale of loans of $1.9 million, representing a 2.45% of gain on sale as a percentage of total loans sold.

    Windsor Advantage
    Gross government loan servicing revenue totaled $4.6 million, including $1.0 million of Capital Bank related servicing fees, during 1Q 2025. Gross government loan servicing revenue totaled $4.6 million, including $0.9 million of Capital Bank related servicing fees, during 4Q 2024. Windsor’s total servicing portfolio was $2.6 billion at March 31, 2025, and $2.5 billion at December 31, 2024.

    COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited
                               
      Quarter Ended   1Q25 vs 4Q24   1Q25 vs 1Q24
    (in thousands, except per share data) March 31,
    2025    		   December 31,
    2024    		   March 31,
    2024    		   $
    Change    		   %
    Change    		   $
    Change    		   %
    Change
    Earnings Summary                          
    Interest income $ 62,760     $ 61,707     $ 48,369     $ 1,053     1.7 %   $ 14,391     29.8 %
    Interest expense   16,713       17,380       13,361       (667 )   (3.8 )%     3,352     25.1 %
    Net interest income   46,047       44,327       35,008       1,720     3.9 %     11,039     31.5 %
    Provision for credit losses   2,246       7,828       2,727       (5,582 )   (71.3 )%     (481 )   (17.6 )%
    Provision for credit losses on unfunded commitments   —       122       142       (122 )   (100.0 )%     (142 )   (100.0 )%
    Noninterest income   12,549       11,913       5,972       636     5.3 %     6,577     110.1 %
    Noninterest expense   38,053       37,514       29,487       539     1.4 %     8,566     29.1 %
    Income before income taxes   18,297       10,776       8,624       7,521     69.8 %     9,673     112.2 %
    Income tax expense   4,365       3,243       2,062       1,122     34.6 %     2,303     111.7 %
    Net income $ 13,932     $ 7,533     $ 6,562     $ 6,399     84.9 %   $ 7,370     112.3 %
                               
    Pre-tax pre-provision net revenue (“PPNR”) (1) $ 20,543     $ 18,726     $ 11,493     $ 1,817     9.7 %   $ 9,050     78.7 %
    Core PPNR(1) $ 21,809     $ 23,961     $ 12,205     $ (2,152 )   (9.0 )%   $ 9,604     78.7 %
                               
    Common Share Data                          
    Earnings per share – Basic $ 0.84     $ 0.45     $ 0.47     $ 0.39     86.7 %   $ 0.37     78.7 %
    Earnings per share – Diluted $ 0.82     $ 0.45     $ 0.47     $ 0.37     82.2 %   $ 0.35     74.5 %
    Core earnings per share – Diluted(1) $ 0.88     $ 0.92     $ 0.51     $ (0.04 )   (4.3 )%   $ 0.37     72.5 %
    Weighted average common shares – Basic   16,666       16,595       13,919                  
    Weighted average common shares – Diluted   16,925       16,729       13,919                  
                               
    Return Ratios                          
    Return on average assets (annualized)   1.75 %     0.96 %     1.15 %                
    Core return on average assets (annualized)(1)   1.87 %     1.97 %     1.24 %                
    Return on average equity (annualized)   15.56 %     8.50 %     10.19 %                
    Core return on average equity (annualized)(1)   16.64 %     17.46 %     11.03 %                
    Return on average tangible common equity (annualized)(1)   17.57 %     9.33 %     10.19 %                
    Core return on average tangible common equity (annualized)(1)   18.77 %     18.91 %     11.03 %                

    ______________
    (1) Refer to Appendix for reconciliation of non-GAAP measures.

    COMPARATIVE FINANCIAL HIGHLIGHTS – Unaudited (Continued)
                           
      Quarter Ended       Quarter Ended
      March 31,     December 31,   September 30,   June 30,
    (in thousands, except per share data)   2025     2024   % Change     2024     2024     2024
    Balance Sheet Highlights                      
    Assets $ 3,349,805   $ 2,324,238   44.1 %   $ 3,206,911   $ 2,560,788   $ 2,438,583
    Investment securities available-for-sale   213,452     202,254   5.5 %     223,630     208,700     207,917
    Mortgage loans held for sale   34,656     10,303   236.4 %     21,270     19,554     19,219
    Portfolio loans receivable (2)   2,678,406     1,964,525   36.3 %     2,630,163     2,107,522     2,021,588
    Allowance for credit losses   48,454     29,350   65.1 %     48,652     31,925     30,832
    Deposits   2,891,333     2,005,695   44.2 %     2,761,939     2,186,224     2,100,428
    FHLB borrowings   22,000     22,000   — %     22,000     52,000     32,000
    Other borrowed funds   12,062     12,062   — %     12,062     12,062     12,062
    Total stockholders’ equity   369,577     259,465   42.4 %     355,139     280,111     267,854
    Tangible common equity (1)   329,936     259,465   27.2 %     318,196     280,111     267,854
                           
    Common shares outstanding   16,657     13,890   19.9 %     16,663     13,918     13,910
    Book value per share $ 22.19   $ 18.68   18.8 %   $ 21.31   $ 20.13   $ 19.26
    Tangible book value per share (1) $ 19.81   $ 18.68   6.0 %   $ 19.10   $ 20.13   $ 19.26
    Dividends per share $ 0.10   $ 0.08   25.0 %   $ 0.10   $ 0.10   $ 0.08

    ______________
    (1) Refer to Appendix for reconciliation of non-GAAP measures.
    (2) Loans are reflected net of deferred fees and costs.

    Consolidated Statements of Income (Unaudited)
      Three Months Ended
    (in thousands) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Interest income                  
    Loans, including fees $ 58,691   $ 58,602     $ 50,047   $ 48,275   $ 45,991
    Investment securities available-for-sale   1,861     1,539       1,343     1,308     1,251
    Federal funds sold and other   2,208     1,566       1,220     1,032     1,127
    Total interest income   62,760     61,707       52,610     50,615     48,369
                       
    Interest expense                  
    Deposits   16,512     16,385       13,902     13,050     12,833
    Borrowed funds   201     995       354     508     528
    Total interest expense   16,713     17,380       14,256     13,558     13,361
                       
    Net interest income   46,047     44,327       38,354     37,057     35,008
    Provision for credit losses   2,246     7,828       3,748     3,417     2,727
    Provision for credit losses on unfunded commitments   —     122       17     104     142
    Net interest income after provision for credit losses   43,801     36,377       34,589     33,536     32,139
    Noninterest income                  
    Service charges on deposits   258     241       235     200     207
    Credit card fees   3,722     3,733       4,055     4,330     3,881
    Mortgage banking revenue   1,831     1,821       1,882     1,990     1,453
    Government lending revenue   1,096     2,301       —     —     —
    Government loan servicing revenue   3,568     3,993       —     —     —
    Loan servicing rights (government guaranteed)   472     1,013       —     —     —
    Non-recurring equity and debt investment write-down   —     (2,620 )     —     —     —
    Other income   1,602     1,431       463     370     431
    Total noninterest income   12,549     11,913       6,635     6,890     5,972
    Noninterest expenses                  
    Salaries and employee benefits   18,067     16,513       13,345     13,272     12,907
    Occupancy and equipment   2,910     2,976       1,791     1,864     1,613
    Professional fees   2,112     2,150       1,980     1,769     1,947
    Data processing   7,112     7,210       6,930     6,788     6,761
    Advertising   1,779     1,032       1,223     2,072     2,032
    Loan processing   743     969       615     476     371
    Foreclosed real estate expenses, net   1     —       1     —     1
    Merger-related expenses   1,266     2,615       520     83     712
    Operational losses   903     993       1,008     782     931
    Regulatory assessment expenses   889     484       427     553     473
    Other operating   2,271     2,572       1,885     1,834     1,739
    Total noninterest expenses   38,053     37,514       29,725     29,493     29,487
    Income before income taxes   18,297     10,776       11,499     10,933     8,624
    Income tax expense   4,365     3,243       2,827     2,728     2,062
    Net income $ 13,932   $ 7,533     $ 8,672   $ 8,205   $ 6,562
     
    Consolidated Balance Sheets
      (unaudited)   (audited)   (unaudited)   (unaudited)   (unaudited)
    (in thousands, except share data) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Assets                  
    Cash and due from banks $ 27,836     $ 25,433     $ 23,462     $ 19,294     $ 12,361  
    Interest-bearing deposits at other financial institutions   266,092       179,841       133,180       117,160       72,787  
    Federal funds sold   59       58       58       57       56  
    Total cash and cash equivalents   293,987       205,332       156,700       136,511       85,204  
    Investment securities available-for-sale   213,452       223,630       208,700       207,917       202,254  
    Restricted investments   7,031       4,479       5,895       4,930       4,441  
    Loans held for sale   34,656       21,270       19,554       19,219       10,303  
    Portfolio loans receivable, net of deferred fees and costs   2,678,406       2,630,163       2,107,522       2,021,588       1,964,525  
    Less allowance for credit losses   (48,454 )     (48,652 )     (31,925 )     (30,832 )     (29,350 )
    Total portfolio loans held for investment, net   2,629,952       2,581,511       2,075,597       1,990,756       1,935,175  
    Premises and equipment, net   15,085       15,525       5,959       5,551       4,500  
    Accrued interest receivable   19,458       16,664       12,468       12,162       12,258  
    Goodwill   24,085       21,126       —       —       —  
    Intangible assets   13,861       14,072       —       —       —  
    Core deposit intangibles   1,695       1,745       —       —       —  
    Loan servicing assets   2,244       5,511       —       —       —  
    Deferred tax asset   15,902       16,670       10,748       12,150       12,311  
    Bank owned life insurance   44,335       43,956       38,779       38,414       38,062  
    Other assets   34,062       35,420       26,388       10,973       19,730  
    Total assets $ 3,349,805     $ 3,206,911     $ 2,560,788     $ 2,438,583     $ 2,324,238  
                       
    Liabilities                  
    Deposits                  
    Noninterest-bearing $ 812,224     $ 810,928     $ 718,120     $ 684,574     $ 665,812  
    Interest-bearing   2,079,109       1,951,011       1,468,104       1,415,854       1,339,883  
    Total deposits   2,891,333       2,761,939       2,186,224       2,100,428       2,005,695  
    Federal Home Loan Bank advances   22,000       22,000       52,000       32,000       22,000  
    Other borrowed funds   12,062       12,062       12,062       12,062       12,062  
    Accrued interest payable   9,995       9,393       8,503       6,573       6,009  
    Other liabilities   44,838       46,378       21,888       19,666       19,007  
    Total liabilities   2,980,228       2,851,772       2,280,677       2,170,729       2,064,773  
                       
    Stockholders’ equity                  
    Common stock   167       167       139       139       139  
    Additional paid-in capital   128,692       128,598       55,585       55,005       54,229  
    Retained earnings   249,925       237,843       232,995       225,824       218,731  
    Accumulated other comprehensive loss   (9,207 )     (11,469 )     (8,608 )     (13,114 )     (13,634 )
    Total stockholders’ equity   369,577       355,139       280,111       267,854       259,465  
    Total liabilities and stockholders’ equity $ 3,349,805     $ 3,206,911     $ 2,560,788     $ 2,438,583     $ 2,324,238  

    The following tables show the average outstanding balance of each principal category of our assets, liabilities and stockholders’ equity, together with the average yields on our assets and the average costs of our liabilities for the periods indicated. Such yields and costs are calculated by dividing the annualized income or expense by the average daily balances of the corresponding assets or liabilities for the same period.

      Three Months Ended
    March 31, 2025    		   Three Months Ended
    December 31, 2024    		   Three Months Ended
    March 31, 2024
      Average
    Outstanding
    Balance    		   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate(1)    		   Average
    Outstanding
    Balance    		   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate(1)    		   Average
    Outstanding
    Balance    		   Interest
    Income/
    Expense    		   Average
    Yield/
    Rate(1)
      (in thousands)
    Assets                                  
    Interest earning assets:                                  
    Interest-bearing deposits $ 203,053   $ 2,138   4.27 %   $ 140,206   $ 1,446   4.10 %   $ 84,531   $ 1,049   4.99 %
    Federal funds sold   58     1   6.99       58     —   —       56     1   7.18  
    Investment securities available-for-sale   235,605     1,861   3.20       236,951     1,539   2.58       233,231     1,251   2.16  
    Restricted investments   5,761     69   4.86       7,292     120   6.55       4,601     77   6.73  
    Loans held for sale   9,356     238   10.32       25,614     193   3.00       4,872     83   6.85  
    Portfolio loans receivable(2)(3)   2,634,110     58,453   9.00       2,592,960     58,409   8.96       1,927,372     45,908   9.58  
    Total interest earning assets   3,087,943     62,760   8.24       3,003,081     61,707   8.17       2,254,663     48,369   8.63  
    Noninterest earning assets   134,021             117,026             44,571        
    Total assets $ 3,221,964           $ 3,120,107           $ 2,299,234        
                                       
    Liabilities and Stockholders’ Equity                                  
    Interest-bearing liabilities:                                  
    Interest-bearing demand accounts $ 242,355     368   0.62     $ 257,446     424   0.66     $ 183,217     110   0.24  
    Savings   13,204     18   0.55       13,497     20   0.59       4,841     1   0.08  
    Money market accounts   869,978     7,399   3.45       763,526     7,131   3.72       682,414     7,136   4.21  
    Time deposits   859,729     8,727   4.12       847,618     8,810   4.13       449,963     5,586   4.99  
    Borrowed funds   34,062     201   2.39       97,116     995   4.08       58,963     528   3.60  
    Total interest-bearing liabilities   2,019,328     16,713   3.36       1,979,203     17,380   3.49       1,379,398     13,361   3.90  
    Noninterest-bearing liabilities:                                  
    Noninterest-bearing liabilities   56,503             58,460             23,820        
    Noninterest-bearing deposits   783,018             729,907             637,124        
    Stockholders’ equity   363,115             352,537             258,892        
    Total liabilities and stockholders’ equity $ 3,221,964           $ 3,120,107           $ 2,299,234        
                                       
    Net interest spread         4.88 %           4.68 %           4.73 %
    Net interest income     $ 46,047           $ 44,327           $ 35,008    
    Net interest margin(4)         6.05 %           5.87 %           6.24 %

    _______________
    (1)   Annualized.
    (2)   Includes nonaccrual loans.
    (3)   For the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, collectively, Commercial Bank Loan Yield was 7.14%, 6.98% and 6.96%, respectively.
    (4)   For the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, collectively, Commercial Bank Net Interest Margin was 4.32%, 3.99% and 3.77%, respectively.

    The Company’s reportable segments represent business units with discrete financial information whose results are regularly reviewed by management. The four segments include Commercial Banking, Capital Bank Home Loans (the Company’s mortgage loan division), OpenSky™ (the Company’s credit card division) and Windsor Advantage.

    Effective January 1, 2024, the Company allocated certain expenses previously recorded directly to the Commercial Bank segment to the other segments. These expenses are for shared services also consumed by OpenSky™, CBHL, and Windsor. The Company performs an allocation process based on several metrics the Company believes more accurately ascribe shared service overhead to each segment. The Company believes this reflects the cost of support for each segment that should be considered in assessing segment performance. Historical information has been recast to reflect financial information consistently with the 2024 presentation.

    The following schedule presents financial information for the periods indicated. Total assets are presented as of March 31, 2025, December 31, 2024, and March 31, 2024.

    Segments                    
    For the three months ended March 31, 2025        
    (in thousands)   Commercial
    Bank    		   CBHL   OpenSky™   Windsor
    Advantage    		   Consolidated
    Interest income   $ 48,164   $ 152     $ 14,444   $ —   $ 62,760
    Interest expense     16,649     64       —     —     16,713
    Net interest income     31,515     88       14,444     —     46,047
    Provision for credit losses     446     —       1,800     —     2,246
    Net interest income after provision     31,069     88       12,644     —     43,801
    Noninterest income     2,474     1,736       3,733     4,606     12,549
    Noninterest expense(1)     18,560     2,531       13,302     3,660     38,053
    Net income (loss) before taxes   $ 14,983   $ (707 )   $ 3,075   $ 946   $ 18,297
                         
    Total assets   $ 3,192,327   $ 14,092     $ 119,636   $ 23,750   $ 3,349,805
                         
    For the three months ended December 31, 2024        
    (in thousands)   Commercial
    Bank    		   CBHL   OpenSky™   Windsor
    Advantage    		   Consolidated
    Interest income   $ 46,061   $ 192     $ 15,454   $ —   $ 61,707
    Interest expense     17,249     131       —     —     17,380
    Net interest income     28,812     61       15,454     —     44,327
    Provision for credit losses     6,651     —       1,177     —     7,828
    Provision for credit losses on unfunded commitments     122     —       —     —     122
    Net interest income after provision     22,039     61       14,277     —     36,377
    Noninterest income     1,928     1,676       3,743     4,566     11,913
    Noninterest expense(1)     19,872     2,377       12,595     2,670     37,514
    Net income (loss) before taxes   $ 4,095   $ (640 )   $ 5,425   $ 1,896   $ 10,776
                         
    Total assets   $ 3,033,792   $ 21,691     $ 125,913   $ 25,515   $ 3,206,911
                         
    For the three months ended March 31, 2024        
    (in thousands)   Commercial
    Bank    		   CBHL   OpenSky™   Windsor
    Advantage    		   Consolidated
    Interest income   $ 33,365   $ 83     $ 14,921   $ —   $ 48,369
    Interest expense     13,320     41       —     —     13,361
    Net interest income     20,045     42       14,921     —     35,008
    Provision for credit losses     1,168     —       1,559     —     2,727
    Provision for credit losses on unfunded commitments     142     —       —     —     142
    Net interest income after provision     18,735     42       13,362     —     32,139
    Noninterest income     705     1,352       3,915     —     5,972
    Noninterest expense(1)     13,783     2,105       13,599     —     29,487
    Net income (loss) before taxes   $ 5,657   $ (711 )   $ 3,678   $ —   $ 8,624
                         
    Total assets   $ 2,208,135   $ 10,785     $ 105,318   $ —   $ 2,324,238

    ________________________
    (1)  Noninterest expense includes $6.4 million, $6.3 million, and $6.1 million in data processing expense in OpenSky’s™ segment for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively.

    HISTORICAL FINANCIAL HIGHLIGHTS – Unaudited
        Quarter Ended
    (in thousands, except per share data)   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Earnings:                    
    Net income   $ 13,932     $ 7,533     $ 8,672     $ 8,205     $ 6,562  
    Earnings per common share, diluted     0.82       0.45       0.62       0.59       0.47  
    Net interest margin     6.05 %     5.87 %     6.41 %     6.46 %     6.24 %
    Commercial Bank net interest margin(2)     4.32 %     3.99 %     4.01 %     3.90 %     3.77 %
    Return on average assets(1)     1.75 %     0.96 %     1.42 %     1.40 %     1.15 %
    Return on average equity(1)     15.56 %     8.50 %     12.59 %     12.53 %     10.19 %
    Efficiency ratio     64.94 %     66.70 %     66.07 %     67.11 %     71.95 %
                         
    Balance Sheet:                    
    Total portfolio loans receivable, net deferred fees   $ 2,678,406     $ 2,630,163     $ 2,107,522     $ 2,021,588     $ 1,964,525  
    Total deposits     2,891,333       2,761,939       2,186,224       2,100,428       2,005,695  
    Total assets     3,349,805       3,206,911       2,560,788       2,438,583       2,324,238  
    Total stockholders’ equity     369,577       355,139       280,111       267,854       259,465  
    Total average portfolio loans receivable, net deferred fees     2,634,110       2,592,960       2,053,619       1,992,630       1,927,372  
    Total average deposits     2,768,284       2,611,994       2,091,294       2,010,736       1,957,559  
    Portfolio loans-to-deposit ratio (period-end balances)     92.64 %     95.23 %     96.40 %     96.25 %     97.95 %
    Portfolio loans-to-deposit ratio (average balances)     95.15 %     99.27 %     98.20 %     99.10 %     98.46 %
                         
    Asset Quality Ratios:                    
    Nonperforming assets to total assets     1.21 %     0.94 %     0.60 %     0.58 %     0.62 %
    Nonperforming loans to total loans     1.51 %     1.15 %     0.73 %     0.70 %     0.73 %
    Net charge-offs to average portfolio loans (1)     0.38 %     0.37 %     0.51 %     0.39 %     0.41 %
    Allowance for credit losses to total loans     1.81 %     1.85 %     1.51 %     1.53 %     1.49 %
    Allowance for credit losses to non-performing loans     119.73 %     160.88 %     206.50 %     219.40 %     204.37 %
                         
    Bank Capital Ratios:                    
    Total risk based capital ratio     13.00 %     12.79 %     13.76 %     14.51 %     14.36 %
    Tier-1 risk based capital ratio     11.75 %     11.54 %     12.50 %     13.25 %     13.10 %
    Leverage ratio     9.27 %     9.17 %     9.84 %     10.36 %     10.29 %
    Common Equity Tier-1 capital ratio     11.75 %     11.54 %     12.50 %     13.25 %     13.10 %
    Tangible common equity     8.66 %     9.31 %     9.12 %     9.53 %     9.66 %
    Holding Company Capital Ratios:                    
    Total risk based capital ratio     15.05 %     15.48 %     16.65 %     16.98 %     16.83 %
    Tier-1 risk based capital ratio     13.41 %     13.83 %     14.88 %     15.19 %     15.03 %
    Leverage ratio     10.68 %     11.07 %     11.85 %     11.93 %     11.87 %
    Common Equity Tier-1 capital ratio     13.33 %     13.74 %     14.78 %     15.08 %     14.92 %
    Tangible common equity     9.94 %     11.07 %     10.94 %     10.98 %     11.16 %

    _______________
    (1)   Annualized.
    (2)   Refer to Appendix for reconciliation of non-GAAP measures.

    HISTORICAL FINANCIAL HIGHLIGHTS – Unaudited (Continued)
        Quarter Ended
    (in thousands, except per share data)   March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
    Composition of Loans:                    
    Commercial real estate, non owner-occupied   $ 484,399     $ 471,329     $ 403,487     $ 397,080     $ 377,224  
    Commercial real estate, owner-occupied     420,643       440,026       351,462       319,370       330,840  
    Residential real estate     693,597       688,552       623,684       601,312       577,112  
    Construction real estate     343,280       321,252       301,909       294,489       290,016  
    Commercial and industrial     594,331       554,550       271,811       255,686       254,577  
    Lender finance     23,165       28,574       29,546       33,294       13,484  
    Business equity lines of credit     3,468       3,090       2,663       2,989       14,768  
    Credit card, net of reserve(2)     118,709       127,766       127,098       122,217       111,898  
    Other consumer loans     2,200       2,089       2,045       1,930       738  
    Portfolio loans receivable   $ 2,683,792     $ 2,637,228     $ 2,113,705     $ 2,028,367     $ 1,970,657  
    Deferred origination fees, net     (5,386 )     (7,065 )     (6,183 )     (6,779 )     (6,132 )
    Portfolio loans receivable, net   $ 2,678,406     $ 2,630,163     $ 2,107,522     $ 2,021,588     $ 1,964,525  
                         
    Composition of Deposits:                    
    Noninterest-bearing   $ 812,224     $ 810,928     $ 718,120     $ 684,574     $ 665,812  
    Interest-bearing demand     296,455       238,881       266,493       266,070       193,963  
    Savings     12,819       13,488       3,763       4,270       4,525  
    Money markets     912,418       816,708       686,526       672,455       678,435  
    Customer time deposits     549,630       548,901       358,300       317,911       302,319  
    Brokered time deposits     307,787       333,033       153,022       155,148       160,641  
    Total deposits   $ 2,891,333     $ 2,761,939     $ 2,186,224     $ 2,100,428     $ 2,005,695  
                         
    Capital Bank Home Loan Metrics:                    
    Origination of loans held for sale   $ 65,815     $ 89,998     $ 74,690     $ 82,363     $ 52,080  
    Mortgage loans sold     54,144       77,399       67,296       66,417       40,377  
    Gain on sale of loans     1,664       1,897       1,644       1,732       1,238  
    Purchase volume as a % of originations     90.73 %     90.42 %     90.98 %     96.48 %     97.83 %
    Gain on sale as a % of loans sold(3)     3.07 %     2.45 %     2.44 %     2.61 %     3.07 %
    Mortgage commissions   $ 545     $ 620     $ 598     $ 582     $ 490  
                         
    OpenSky™Portfolio Metrics:                    
    Open customer accounts     563,718       552,566       548,952       537,734       526,950  
    Secured credit card loans, gross   $ 81,252     $ 87,226     $ 89,641     $ 90,961     $ 85,663  
    Unsecured credit card loans, gross     38,987       42,430       39,730       33,560       28,508  
    Noninterest secured credit card deposits     168,796       166,355       170,750       173,499       171,771  

    _______________
    (3)   Credit card loans are presented net of reserve for interest and fees.
    (4)   Gain on sale percentage is calculated as gain on sale of loans divided by mortgage loans sold.

    Appendix

    Reconciliation of Non-GAAP Measures

    The Company has presented the following non-GAAP (U.S. Generally Accepted Accounting Principles) financial measures because it believes that these measures provide useful and comparative information to assess trends in the Company’s results of operations and financial condition. Presentation of these non-GAAP financial measures is consistent with how the Company evaluates its performance internally and these non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Company’s industry. Investors should recognize that the Company’s presentation of these non-GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures and the Company strongly encourages a review of its condensed consolidated financial statements in their entirety.

    Core Earnings Metrics Quarter Ended
    (in thousands, except per share data) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    Net Income $ 13,932     $ 7,533     $ 8,672     $ 8,205     $ 6,562  
    Add: Merger-Related Expenses, net of tax   964       2,151       557       62       538  
    Add: Non-recurring equity and debt investment write-down   —       2,620       —       —       —  
    Add: IFH ACL Provision, net of tax   —       3,169       —       —       —  
    Core Net Income $ 14,896     $ 15,473     $ 9,229     $ 8,267     $ 7,100  
                       
    Weighted Average Common Shares – Diluted   16,925       16,729       13,951       13,895       13,919  
    Earnings per Share – Diluted $ 0.82     $ 0.45     $ 0.62     $ 0.59     $ 0.47  
    Core Earnings per Share – Diluted $ 0.88     $ 0.92     $ 0.66     $ 0.59     $ 0.51  
                       
    Average Assets $ 3,221,964     $ 3,120,107     $ 2,437,870     $ 2,353,868     $ 2,299,234  
    Return on Average Assets(1)   1.75 %     0.96 %     1.42 %     1.40 %     1.15 %
    Core Return on Average Assets(1)   1.87 %     1.97 %     1.51 %     1.41 %     1.24 %
                       
    Average Equity $ 363,115     $ 352,537     $ 274,087     $ 263,425     $ 258,892  
    Return on Average Equity(1)   15.56 %     8.50 %     12.59 %     12.53 %     10.19 %
    Core Return on Average Equity(1)   16.64 %     17.46 %     13.40 %     12.62 %     11.03 %
                       
    Net Interest Income (a) $ 46,047     $ 44,327     $ 38,354     $ 37,057     $ 35,008  
    Noninterest Income   12,549       11,913       6,635       6,890       5,972  
    Total Revenue $ 58,596     $ 56,240     $ 44,989     $ 43,947     $ 40,980  
    Noninterest Expense $ 38,053     $ 37,514     $ 29,725     $ 29,493     $ 29,487  
    Efficiency Ratio(2)   64.9 %     66.7 %     66.1 %     67.1 %     72.0 %
                       
    Noninterest Income $ 12,549     $ 11,913     $ 6,635     $ 6,890     $ 5,972  
    Add: Non-recurring equity and debt investment write-down   —       2,620       —       —       —  
    Core Fee Revenue (b) $ 12,549     $ 14,533     $ 6,635     $ 6,890     $ 5,972  
    Core Revenue (a) + (b) $ 58,596     $ 58,860     $ 44,989     $ 43,947     $ 40,980  
                       
    Noninterest Expense $ 38,053     $ 37,514     $ 29,725     $ 29,493     $ 29,487  
    Less: Merger-Related Expenses   1,266       2,615       520       83       712  
    Core Noninterest Expense $ 36,787     $ 34,899     $ 29,205     $ 29,410     $ 28,775  
    Core Efficiency Ratio(2)   62.8 %     59.3 %     64.9 %     66.9 %     70.2 %

    _______________
    (1)   Annualized.
    (2)   The efficiency ratio is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income).

    Commercial Bank Net Interest Margin Quarter Ended
    (in thousands) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    Commercial Bank Net Interest Income $ 31,515     $ 28,812     $ 22,676     $ 21,223     $ 20,045  
    Average Interest Earning Assets   3,087,943       3,003,081       2,380,946       2,307,070       2,254,663  
    Less: Average Non-Commercial Bank Interest Earning Assets   128,278       133,401       129,906       119,801       116,197  
    Average Commercial Bank Interest Earning Assets $ 2,959,665     $ 2,869,680     $ 2,251,040     $ 2,187,269     $ 2,138,466  
    Commercial Bank Net Interest Margin   4.32 %     3.99 %     4.01 %     3.90 %     3.77 %
    Commercial Bank Portfolio Loans Receivable Yield Quarter Ended
    (in thousands) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    Portfolio Loans Receivable Interest Income $ 58,453     $ 58,409     $ 49,886     $ 48,143     $ 45,908  
    Less: Credit Card Loan Income   14,148       15,022       15,137       15,205       14,457  
    Commercial Bank Portfolio Loans Receivable Interest Income $ 44,305     $ 43,387     $ 34,749     $ 32,938     $ 31,451  
    Average Portfolio Loans Receivable   2,634,110       2,592,960       2,053,619       1,992,630       1,927,372  
    Less: Average Credit Card Loans   118,723       120,993       119,458       111,288       110,483  
    Total Commercial Bank Average Portfolio Loans Receivable $ 2,515,387     $ 2,471,967     $ 1,934,161     $ 1,881,342     $ 1,816,889  
    Commercial Bank Portfolio Loans Receivable Yield   7.14 %     6.98 %     7.15 %     7.04 %     6.96 %
    Pre-tax, Pre-Provision Net Revenue (“PPNR”) Quarter Ended
    (in thousands) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    Net Income $ 13,932   $ 7,533   $ 8,672   $ 8,205   $ 6,562
    Add: Income Tax Expense   4,365     3,243     2,827     2,728     2,062
    Add: Provision for Credit Losses   2,246     7,828     3,748     3,417     2,727
    Add: Provision for Credit Losses on Unfunded Commitments   —     122     17     104     142
    Pre-tax, Pre-Provision Net Revenue (“PPNR”) $ 20,543   $ 18,726   $ 15,264   $ 14,454   $ 11,493
    Core PPNR Quarter Ended
    (in thousands) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    Net Income $ 13,932   $ 7,533   $ 8,672   $ 8,205   $ 6,562
    Add: Income Tax Expense   4,365     3,243     2,827     2,728     2,062
    Add: Provision for Credit Losses   2,246     7,828     3,748     3,417     2,727
    Add: Provision for Credit Losses on Unfunded Commitments   —     122     17     104     142
    Add: Merger-Related Expenses   1,266     2,615     520     83     712
    Add: Non-recurring equity and debt investment write-down   —     2,620     —     —     —
    Core PPNR $ 21,809   $ 23,961   $ 15,784   $ 14,537   $ 12,205
    Allowance for Credit Losses to Total Portfolio Loans Quarter Ended
    (in thousands) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    Allowance for Credit Losses $ 48,454     $ 48,652     $ 31,925     $ 30,832     $ 29,350  
    Total Portfolio Loans   2,678,406       2,630,163       2,107,522       2,021,588       1,964,525  
    Allowance for Credit Losses to Total Portfolio Loans   1.81 %     1.85 %     1.51 %     1.53 %     1.49 %
    Commercial Bank Allowance for Credit Losses to Commercial Bank Portfolio Loans Quarter Ended
    (in thousands) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    Allowance for Credit Losses $ 48,454     $ 48,652     $ 31,925     $ 30,832     $ 29,350  
    Less: Credit Card Allowance for Credit Losses   5,905       6,402       7,339       6,768       5,991  
    Commercial Bank Allowance for Credit Losses   42,549       42,250       24,586       24,064       23,359  
    Total Portfolio Loans   2,678,406       2,630,163       2,107,522       2,021,588       1,964,525  
    Less: Gross Credit Card Loans   115,991       122,928       121,718       116,180       106,572  
    Commercial Bank Portfolio Loans   2,562,415       2,507,235       1,985,804       1,905,408       1,857,953  
    Commercial Bank Allowance for Credit Losses to Total Portfolio Loans   1.67 %     1.70 %     1.24 %     1.26 %     1.26 %
    Nonperforming Assets to Total Assets Quarter Ended
    (in thousands) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    Total Nonperforming Assets $ 40,471     $ 30,241     $ 15,460     $ 14,053     $ 14,361  
    Total Assets   3,349,805       3,206,911       2,560,788       2,438,583       2,324,238  
    Nonperforming Assets to Total Assets   1.21 %     0.94 %     0.60 %     0.58 %     0.62 %
    Nonperforming Loans to Total Portfolio Loans Quarter Ended
    (in thousands) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    Total Nonperforming Loans $ 40,471     $ 30,241     $ 15,460     $ 14,053     $ 14,361  
    Total Portfolio Loans   2,678,406       2,630,163       2,107,522       2,021,588       1,964,525  
    Nonperforming Loans to Total Portfolio Loans   1.51 %     1.15 %     0.73 %     0.70 %     0.73 %
    Net Charge-Offs to Average Portfolio Loans Quarter Ended
    (in thousands) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    Total Net Charge-Offs $ 2,444     $ 2,427     $ 2,655     $ 1,935     $ 1,987  
    Total Average Portfolio Loans   2,634,110       2,592,960       2,053,619       1,992,630       1,927,372  
    Net Charge-Offs to Average Portfolio Loans, Annualized   0.38 %     0.37 %     0.51 %     0.39 %     0.41 %
    Tangible Book Value per Share Quarter Ended
    (in thousands, except share and per share data) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    Total Stockholders’ Equity $ 369,577   $ 355,139   $ 280,111   $ 267,854   $ 259,465
    Less: Preferred Equity   —     —     —     —     —
    Less: Intangible Assets   39,641     36,943     —     —     —
    Tangible Common Equity $ 329,936   $ 318,196   $ 280,111   $ 267,854   $ 259,465
    Period End Shares Outstanding   16,657,168     16,662,626     13,917,891     13,910,467     13,889,563
    Tangible Book Value per Share $ 19.81   $ 19.10   $ 20.13   $ 19.26   $ 18.68
    Return on Average Tangible Common Equity Quarter Ended
    (in thousands) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    Net Income $ 13,932     $ 7,533     $ 8,672     $ 8,205     $ 6,562  
    Add: Intangible Amortization, Net of Tax   199       198       —       —       —  
    Net Tangible Income $ 14,131     $ 7,731     $ 8,672     $ 8,205     $ 6,562  
    Average Equity   363,115       352,537       274,087       263,425       258,892  
    Less: Average Intangible Assets   36,896       22,890       —       —       —  
    Net Average Tangible Common Equity $ 326,219     $ 329,647     $ 274,087     $ 263,425     $ 258,892  
    Return on Average Equity   15.56 %     8.50 %     12.59 %     12.53 %     10.19 %
    Return on Average Tangible Common Equity   17.57 %     9.33 %     12.59 %     12.53 %     10.19 %
    Core Return on Average Tangible Common Equity Quarter Ended
    (in thousands) March 31,
    2025    		   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024
                       
    Net Income, as Adjusted $ 14,896     $ 15,473     $ 9,229     $ 8,267     $ 7,100  
    Add: Intangible Amortization, Net of Tax   199       198       —       —       —  
    Core Net Tangible Income $ 15,095     $ 15,671     $ 9,229     $ 8,267     $ 7,100  
    Core Return on Average Tangible Common Equity   18.77 %     18.91 %     13.40 %     12.62 %     11.03 %

    ABOUT CAPITAL BANCORP, INC.
    Capital Bancorp, Inc., Rockville, Maryland is a registered bank holding company incorporated under the laws of Maryland. Capital Bancorp has been providing financial services since 1999 and now operates bank branches in four locations in the Washington, D.C., Baltimore, other Maryland markets, one bank branch in Fort Lauderdale, Florida, one bank branch in Chicago, Illinois and one bank branch in Raleigh, North Carolina. Capital Bancorp had assets of approximately $3.3 billion at March 31, 2025 and its common stock is traded in the NASDAQ Global Market under the symbol “CBNK.” More information can be found at the Company’s website www.CapitalBankMD.com under its investor relations page.

    FORWARD-LOOKING STATEMENTS
    This earnings release contains forward-looking statements. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. Any statements about our management’s expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “optimistic,” “intends” and similar words or phrases. Any or all of the forward-looking statements in this earnings release may turn out to be inaccurate. The inclusion of forward-looking information in this earnings release should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Our actual results could differ materially from those anticipated in such forward-looking statements.  Accordingly, we caution you that any such forward-looking statements are not a guarantee of future performance and that actual results may prove to be materially different from the results expressed or implied by the forward-looking statements due to a number of factors. For details on some of the factors that could affect these expectations, see risk factors and other cautionary language included in the Company’s Annual Report on Form 10-K and other periodic and current reports filed with the Securities and Exchange Commission.

    While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: changes in general economic, political, or industry conditions; geopolitical concerns, including the ongoing wars in Ukraine and in the Middle East; uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Board of Governors of the Federal Reserve System; inflation/deflation, interest rate, market, and monetary fluctuations; volatility and disruptions in global capital and credit markets; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services; the impact of changes in financial services policies, laws, and regulations, including those concerning taxes, banking, securities, and insurance, and the application thereof by regulatory bodies; cybersecurity threats and the cost of defending against them, including the costs of compliance with potential legislation to combat cybersecurity at a state, national, or global level; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; the expected cost savings, synergies and other financial benefits from the acquisition of IFH or any other acquisition the Company has made or may make might not be realized within the expected time frames or at all; the effect of acquisitions we have made or may make, including, without limitation, the failure to achieve the expected revenue growth and/or expense savings from such acquisitions, and/or the failure to effectively integrate an acquisition target into our operations; and other factors that may affect our future results.

    These forward-looking statements are made as of the date of this communication, and the Company does not intend, and assumes no obligation, to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events or circumstances, except as required by law.

    FINANCIAL CONTACT: Dominic Canuso (301) 468-8848 x1403

    MEDIA CONTACT: Ed Barry (240) 283-1912

    WEB SITE: www.CapitalBankMD.com

    The MIL Network –

  • MIL-OSI USA: Missouri State Archives Hosts Emergency Preparedness Exercise for MayDay Campaign

    Source: US State of Missouri

     

     

    For Immediate Release:   April 28, 2025

               

    Missouri State Archives Hosts Emergency Preparedness Exercise for MayDay Campaign

    JEFFERSON CITY, MO – In honor of the national MayDay campaign to promote emergency preparedness in the cultural heritage field, the Missouri State Archives, a division of Secretary of State Denny Hoskins’ office, is conducting a hands-on training exercise to strengthen its ability to protect Missouri’s historical records during emergencies.

    “These training exercises are essential to ensure preparedness for small incidents with the records of state and local government agencies all the way up to major responses like the flooding of the Carter County Courthouse,” said State Archivist John Dougan.  

    On April 30 and May 1, Archives staff members will participate in a wet-incident retrieval and stabilization exercise, practicing the recovery of three different types of historical items. The training will begin with a brief instructional session in the Archives Conference Room before moving to the Conservation Lab for hands-on work. Each session is expected to last approximately two hours.

    “Missouri’s history is preserved through countless documents, records, and artifacts entrusted to our care,” said Secretary Hoskins. “Proactive preparation is critical to ensuring these irreplaceable pieces of our heritage survive natural disasters or unforeseen emergencies. I commend the Archives Division for its commitment to safeguarding the past for future generations.”

    The annual MayDay initiative, sponsored by the Foundation for Advancement in Conservation, encourages institutions to dedicate at least one day to improving their emergency preparedness plans. The Missouri State Archives’ participation reflects its ongoing commitment to protecting Missouri’s governmental and historical records through education, training, and best practices in archival preservation.

    For more information about the Missouri State Archives and its preservation efforts, visit www.sos.mo.gov/archives.

    Photos from the 2024 MayDay exercises are attached for use. 

    About the Missouri State Archives
    The Missouri State Archives, established in 1965, serves as the official repository for the state’s permanent and historical records. Its extensive collections date back to 1770 and encompass executive, legislative, and judicial documents; state department and agency records; land and military records; state publications; photographs; maps; county and municipal records on microfilm; and various manuscripts and reference materials. With holdings exceeding 336 million pages of paper, 770,000 photographs, 9,000 maps, 66,000 reels of county government records on microfilm, 560 cubic feet of published state documents, and 1,000 audio/video items, the Archives plays a crucial role in preserving Missouri’s rich history. These resources are accessible to government officials, historians, students, genealogists, and the general public through the Archives’ research room.

    About the Missouri Secretary of State’s Office
    The Missouri Secretary of State’s Office serves as a central hub for key state functions that promote transparency, security, and opportunity for all Missourians. The Office oversees the administration of fair and secure elections, registers and supports businesses, maintains and preserves state records through the State Archives, and ensures public access to government rulemaking via the Administrative Rules Division.

    Additionally, the Office protects investors through the Securities Division, supports libraries and literacy programs across the state, and administers the Safe at Home address confidentiality program for survivors of abuse and assault. With a commitment to service, accountability, and civic engagement, the Secretary of State’s Office works every day to strengthen Missouri’s government and communities.

    About Secretary of State Denny Hoskins
    Denny Hoskins, CPA, was elected Missouri’s 41st Secretary of State in November 2024. With a strong background in business and public service, he is committed to improving government efficiency, transparency, and supporting Missouri families. Hoskins previously served as a legislator in both the state Senate and House. He and his wife, Michelle, reside in Warrensburg and have five adult children.

     
    For more information, please contact Rachael Dunn, Director of Communications, via email at [email protected].

    MIL OSI USA News –

  • MIL-OSI USA: Call to Reevaluate Construction Plans on East River Tunnels

    Source: US State of New York

    overnor Kathy Hochul today called on Amtrak to reevaluate its plan to fully shut down the East River Tunnels as it undertakes its latest rehabilitation project and consider shifting instead to a ‘repair in place’ method — with construction happening during nights and weekends — to maintain normal train schedules. The Governor’s announcement comes on the heels of news that Amtrak plans to temporarily delay the tunnel closure while maintaining service cuts that disproportionately impact Empire Service riders. In a letter to Amtrak, Governor Hochul urged the company to re-examine its plans and take innovative steps to mitigate impact to passengers.

    “While I continue to be supportive of the efforts to rehabilitate the East River Tunnels, the decision to maintain service cuts amidst this latest delay — and backtracking on public commitments to increase capacity during the shutdown — shows a disregard for Empire Service passengers,” Governor Hochul said. “Enough is enough. It’s far past time for Amtrak to put its passengers first, take a hard look at its construction plans and ensure access to reliable train travel throughout this key corridor.”

    Empire Service is supported by the New York State Department of Transportation (NYSDOT) and carried more than two million passengers in FY 2024, setting all-time records for ridership and revenue. Last year, Amtrak announced the decision to reduce service by two daily round trips between Albany and New York City and implemented additional operational modifications to the Maple Leaf and Adirondack lines while it undertakes a rehabilitation of the East River Tunnels (ERT) which flooded during Superstorm Sandy in 2012.

    Governor Hochul has expressed support for the project and its aim to address a state-of-good repair backlog on the Northeast Corridor, but has been vocal in her opposition to plans that have caused Empire Service trains to receive a disproportionate share of impacts to schedules. That opposition led to an agreement between Amtrak and the NYSDOT for the restoration of nearly all of the trains that had been temporarily suspended in advance of the tunnel closure. Part of the agreement included a commitment to add additional coach cars to other Empire Service trains in order to further mitigate the disruption to passengers. Amtrak has since cast doubt on that commitment in order to redistribute rolling stock while Horizon fleet passenger cars are removed from service to address corrosion issues. Governor Hochul has also expressed concern that significant risks to Long Island Rail Road service posed by a total shutdown remain unaddressed.

    With Amtrak soon to be under new leadership, New York State believes now is the time for the planned ERT shutdown to be thoroughly re-examined. There is ample local and international precedent for the ‘repair in place’ method, which could simultaneously permit maintaining existing daytime trips while reducing the risk of major service disruptions.

    New York State Department of Transportation Commissioner Marie Therese Dominguez said, “With the onset of the spring and summer travel seasons, it’s imperative that New Yorkers have convenient and reliable passenger rail service to help them get where they want and need to go. I join with Governor Hochul in urging Amtrak to put passengers first and re-think their planned service reductions, which unfairly impact Empire Service riders. The rehabilitation of the East River Tunnels is a needed and important project, and we want to continue to work with Amtrak to find a way to do this work without inflicting unnecessary burdens on New Yorkers.”

    MIL OSI USA News –