Category: Transport

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

Source: United Kingdom – Executive Government & Departments

Press release

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

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

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

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

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

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

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

Prime Minister Keir Starmer said:

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

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

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

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

Business and Trade Secretary Jonathan Reynolds said:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Tufan Erginbiligic, Rolls-Royce CEO, said:

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

Nik Jhangiani, Interim Chief Executive, Diageo, said:

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

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

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

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

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

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

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

Published 23 July 2025

MIL OSI United Kingdom –

MIL-OSI United Nations: Syria: Second convoy brings critical aid to Sweida

Source: United Nations 2

Deadly sectarian violence has displaced more than 145,000 people in the southern city, some of whom have fled to neighbouring Dar’a and Rural Damascus governorates. 

The convoy carried a range of critical support, including food, wheat flour, fuel, medicines and health supplies.

OCHA coordinated with the SARC to prepare the convoy, which included supplies from UN agencies.

Engagement and support

The Office continues to engage with authorities and partners to facilitate an inter-agency UN mission to Sweida as conditions allow.

The UN is also working with partners to deliver a range of assistance to people displaced to Dar’a and Rural Damascus, including food, water, and health and protection services.   

Mobile medical teams have so far provided more than 3,500 consultations, including trauma care, maternal health and psychosocial support while nearly 38,000 people have received food aid.

Additionally, over 1,000 kits containing non-food items were distributed in Dar’a and Rural Damascus, helping more than 5,000 people. 

OCHA said UN inter-agency missions to assess needs and provide assistance to both governorates are planned for the coming days. 

The first convoy to Sweida arrived on Sunday. The 32 trucks brought food, water, medical supplies and fuel provided by the UN World Food Programme (WFP), the UN Children’s Fund (UNICEF) and other partners.

MIL-OSI New Zealand: Fire and Emergency New Zealand offers firefighters a 5.1 percent pay increase

Source: Fire and Emergency New Zealand

Fire and Emergency New Zealand and the New Zealand Professional Firefighters Union have been negotiating a collective employment agreement for career firefighters since 16 July 2024.

Deputy Chief Executive Service Delivery Operations/Deputy National Commander Megan Stiffler says Fire and Emergency has offered the Union a 5.1 percent pay increase over the next three years, as well as increases to some allowances.

“We consider the offer is fair, balances cost of living pressures being faced by individuals alongside fiscal pressures faced by Fire and Emergency and is consistent with the Government Workforce Policy Statement.”

Megan Stiffler says Fire and Emergency has invested significantly in its people and its resources for the safety of communities since it was established in 2017.

“The previous collective employment agreement settlement in 2022 provided a cumulative wage increase of up to 24 percent over a three-year period for our career firefighters.”

“Fire and Emergency has also been investing in replacing our fleet, with 317 trucks replaced since 2017 and another 70 on order. We are currently spending over $20 million per year on replacement trucks. There is also a significant programme of station upgrades underway, as well as investment in training,” she says.

“In 2023/24 most career firefighters earned over $100,000 per year, including overtime and allowances. The turnover rate for our career firefighters was just 3.6 percent last year, and the average length of service was 17 years. We work constantly with our people to ensure we are an employer of choice.”

“Our firefighters are highly trained and deeply committed to serving their communities and we are investing in our people and our resources, to support them. They do an incredible job keeping New Zealanders safe.”

MIL OSI New Zealand News –

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

Source: Save the Children

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

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

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

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

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

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

Speaking from The Hague last year , Vepaiamele said:

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

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

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

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

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

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

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

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

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

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

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

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

Notes:

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

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

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

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

MIL OSI New Zealand News –

MIL-OSI USA: Deadline Approaches to Register for 2025 Governor’s Summit

Source: US State of Nebraska

. Registrations should be submitted online at govsummit.nebraska.gov by Thursday, July 31^st.

“Our state’s incredible economy is driven by two main engines—agriculture and manufacturing,” said Gov. Pillen. “In Nebraska, we grow things and make things that are in demand worldwide, and we do it better than any place else in the world. At this summer’s Summit, we’ll explore how to generate even more value by uniting our strengths in ag and manufacturing to lead the nation’s new bioeconomy.”

This year’s Governor’s Summit takes place August 13-14 in Kearney. It will feature breakout tracks on workforce development, manufacturing, and the bioeconomy. Husker football coach Matt Rhule will give the keynote address on Thursday morning, August 14^th.

A complete rundown of activities and breakout sessions can be found on the website (govsummit.nebraska.gov).

In conjunction with the main conference, the State is hosting the inaugural Governor’s Youth Summit on August 14^th in Kearney. The experience is designed for high school students and recent graduates, providing them with direct access to career opportunities in Nebraska. During the event, student attendees will connect one-on-one with businesses and colleges to learn about internships, scholarships, and other career pathways. More information about the Youth Summit is available at govsummit.nebraska.gov/youth.

For an agenda and registration information for the 2025 Governor’s Summit, go to govsummit.nebraska.gov.

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

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

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

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

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

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

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

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

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

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

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

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

MIL-OSI Security: Career Offender Sentenced to 175 Months in Federal Prison for Drug and Firearms Offense

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

HOT SPRINGS – A Pearcy man was sentenced yesterday to a total of 175 months in prison on one count of Possession with Intent to Distribute Methamphetamine, one count of being a Felon in Possession of a Firearm, as well as violations of his term of supervised release from a previous conviction. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court documents, on July 22, 2024, a Trooper with the Arkansas State Police attempted to make a traffic stop on Michael Fryar in Garland County. After the Trooper initiated his lights, Fryar fled in his vehicle and a pursuit ensued. After a short pursuit Fryar abandoned the vehicle and fled on foot into a wooded area. The Trooper pursued on foot and had to deploy his taser to get Fryar apprehended. At the time of the offense, Fryar was in possession of a loaded firearm with a round in the chamber and a distribution amount of methamphetamine. Fryar has an extensive criminal history and was on federal supervised release at the time of the offense.
The Arkansas State Police, 18th East Drug Task Force, Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney David Harris prosecuted the case for the United States.
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. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov.

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

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

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

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

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

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

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

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

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

MIL-OSI Security: Fleming Island Felon Sentenced To Six Years In Prison For Illegally Possessing A Firearm

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

Jacksonville, Florida – U.S. District Judge Harvey E. Schlesinger has sentenced Jason Stewart Karst II (37, Fleming Island) to six years in federal prison for possessing a firearm as a convicted felon. Karst entered a guilty plea in March 2025.

According to court documents, in April 2024, agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives received a complaint from a local shooting range that Karst and another individual had been shooting fully automatic firearms at the range. Surveillance video from the range showed Karst firing a fully automatic gun as well as a separate gun that was equipped with a silencer. Agents obtained a search warrant for a home owned by Karst and executed the warrant on May 1, 2024. During the search, agents found five silencers, a privately manufactured firearm that was equipped with a machinegun conversion device, and a pistol that was also equipped with a machinegun conversion device inside a large safe. The guns matched the appearance of the ones used by Karst at the shooting range. In addition, while agents were executing the search warrant, Karst drove up to the house. During a search of Karst’s car, officers with the Jacksonville Sheriff’s Office found a white powdery substance, over 20 grams of marijuana, a scale, a pistol without a serial number, and keys to the safe.

Karst was previously convicted of multiple felonies, including two convictions for possession of marijuana with the intent to sell or deliver, possession of a controlled substance with the intent to sell or deliver, attempted use of a minor to deliver a controlled substance, and possession of a firearm by a convicted felon. Therefore, he is prohibited from possessing firearms or ammunition under federal law. Additionally, contrary to federal law, the machinegun conversion devices and silencers were not registered in the National Firearms Registration and Transfer Record—a database maintained by the Bureau of Alcohol, Tobacco, Firearms and Explosives.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Clay County Sheriff’s Office, and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney Elisibeth Adams.

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.

MIL-OSI Security: Lewiston Man Pleads Guilty to Illegally Possessing a Firearm

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

PORTLAND, Maine: A Lewiston man pleaded guilty on Tuesday in U.S. District Court in Portland to being a felon in possession of a firearm.

According to court records, in January 2025, Lewiston police officers stopped a vehicle operated by Kulmiye Abukar Idris, 35, for traffic violations. Officers searched the vehicle and found a handgun. Idris was prohibited from possessing a firearm because of his prior felony conviction for gross sexual assault.

Idris faces up to 15 years in prison, a $250,000 fine, and supervised release for three years. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and Lewiston Police Department investigated the case, with assistance from the Androscoggin County District Attorney’s Office.

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

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MIL-OSI Banking: Today we’re releasing GitHub Spark — a new tool in Copilot that turns your ideas into full-stack apps, entirely in natural language. I’ve enjoyed creating with Spark myself, but even more, I’ve enjoyed seeing what you’re building.

Source: Microsoft

Headline: Today we’re releasing GitHub Spark — a new tool in Copilot that turns your ideas into full-stack apps, entirely in natural language. I’ve enjoyed creating with Spark myself, but even more, I’ve enjoyed seeing what you’re building.

Today we’re releasing GitHub Spark — a new tool in Copilot that turns your ideas into full-stack apps, entirely in natural language. I’ve enjoyed creating with Spark myself, but even more, I’ve enjoyed seeing what you’re building: https://lnkd.in/gQ_swwt3

MIL OSI Global Banks –

MIL-OSI Canada: Saskatchewan Wildfire Update – July 23

Source: Government of Canada regional news

Released on July 23, 2025

As of 11:00 a.m. on Wednesday, July 23, there are 50 active wildfires in Saskatchewan. Of those active fires, four are categorized as contained, 14 are not contained, 14 are ongoing assessments and 18 are listed as protecting values.

Eleven communities are currently under an evacuation order: Resort Subdivision of Lac La Plonge, La Plonge Reserve, Northern Village of Beauval, Northern Hamlet of Jans Bay, Patuanak/English River First Nation, Montreal Lake Cree Nation, Northern Village of Pinehouse, Canoe Lake Cree First Nation/Canoe Narrows, Île-à-la-Crosse, Resort Subdivision of Cole Bay and Resort Subdivision of Little Amyot Lake.

A full list of evacuated communities can be found on the Active Evacuations webpage.

Any evacuees should register through the Sask Evac Web Application and then call 1-855-559-5502 between 8 a.m. and 5 p.m. to have their needs assessed for additional assistance. Individuals who need help registering through the application can call the 855 Line for assistance.

Evacuees supported by the Canadian Red Cross should call 1-800-863-6582.

Due to the wildfire conditions continuing to impact communities and individuals in northern Saskatchewan, Corrections, Policing and Public Safety Minister Tim McLeod sent a letter to the Federal Minister of Emergency Management and Community Resilience and Public Safety Eleanor Olszewski requesting the following resources to assist in the wildfire response efforts:

Type 3 fire personnel, up to 300, that could be utilized for wildfire mop up operations. Logistical support, lodging, food and transportation may be required for the deployed type 3 personnel.
Medium and intermediate helicopters for bucketing and crew movement.
Value Protection kits – sprinkler and hoses for structure protection in various communities.
Water tenders / water haulers for assisting with wildfire mop up and fire mitigation in various communities.

The latest wildfire information, an interactive fire ban map, frequently asked questions, fire risk maps and fire prevention tips can be found at saskpublicsafety.ca.

For more information, review the current fire bans and restrictions in provincial parks and recreation sites.

-30-

For more information, contact:

MIL OSI Canada News –

MIL-OSI USA: Wasserman Schultz, Carter, Norcross Reintroduce Bipartisan Pool Safety Legislation to Save Young Lives

Source: United States House of Representatives – Representative Debbie Wasserman Schultz (FL-23)

“No work we do in Congress is more important than keeping our children healthy and safe. And the Virginia Graeme Baker Pool and Spa Safety Act does that by saving countless lives over the years. So, it is critical that we continue this bipartisan, common-sense law, which this reauthorization does by expanding its life-saving impact,” said Wasserman Schultz. “Just this year in my home state we’ve seen over 60 drownings, which is more incidents than at this same time last year. But with education and added layers of protection we can keep more innocent children safe. This law does that by helping decrease drowning in pools and spas, a concern on every parent’s mind as the summer season and water activities pick up. Let’s keep our kids safe with sensible outreach, education, and precautions.”

Washington, D.C. – Today, U.S. Reps. Debbie Wasserman Schultz (FL-25), John Carter (TX-31), and Donald Norcross (NJ-01) re-introduced the bipartisan Virginia Graeme Baker Pool and Spa Safety (VGB) Reauthorization Act to help decrease preventable drownings.

Drownings and near-drownings in pools and spas pose a significant public health risk to our nation’s children. These water-safety fatalities remain the leading cause of unintentional death for children ages one to four, with higher incidents of drowning deaths for American Indian and Black individuals. However, we are not powerless to prevent these tragedies. Strong education, awareness, and enforcement efforts help make children safer around the water and save lives.

“No work we do in Congress is more important than keeping our children healthy and safe. And the Virginia Graeme Baker Pool and Spa Safety Act does that by saving countless lives over the years. So, it is critical that we continue this bipartisan, common-sense law, which this reauthorization does by expanding its life-saving impact,” said Wasserman Schultz. “Just this year in my home state we’ve seen over 60 drownings, which is more incidents than at this same time last year. But with education and added layers of protection we can keep more innocent children safe. This law does that by helping decrease drowning in pools and spas, a concern on every parent’s mind as the summer season and water activities pick up. Let’s keep our kids safe with sensible outreach, education, and precautions.”

“The Virginia Graeme Baker Pool and Spa Safety Act has saved many lives since 2008 by helping to prevent drownings through stronger safety standards and public education,” said Carter. “Now, with summer in full swing and families spending more time at the pool, reauthorizing this law is more important than ever. We should all want our children to be safe around the pool, and this bill is a smart, bipartisan way to protect them. I thank my colleague Rep. Wasserman Schultz for her advocacy on this issue, and I hope my colleagues will support.”

“The Virginia Graeme Baker Pool and Spa Safety Act is a common-sense bill that has already saved countless lives. It’s a great example of when a policy works the way it was intended. The results speak for themselves since there haven’t been any entrapment deaths in public pools since the legislation was enacted,” said Norcross. “That’s why I’m honored to cosponsor this bill’s reauthorization to continue ensuring our pools install safe drain covers and, most importantly, save lives.”

The Virginia Graeme Baker Pool and Spa Safety Act (VGB), first authorized in 2008, is aimed at improving the safety of all pools and spas by increasing the layers of protection and promoting uninterrupted supervision to prevent child drowning and entrapment. The law has three principal elements, carried out by the Consumer Product Safety Commission (CPSC):

First, it requires every public pool in the US to install safe drain covers that prevent suction entrapment.

2. Second, it initiates a grant program that incentivizes states, municipalities, and Indian Tribes to adopt their own pool and spa safety laws and support education efforts. These grants provide critical support for local officials to enforce their safety requirements and educate communities about drowning and entrapment dangers.

Third, it launches “Pool Safely,” a national public education campaign to raise awareness about drowning prevention.

The VGB Reauthorization Act will continue to carry out these primary functions as it builds on over a decade’s worth of expertise in proper execution of the programs through the CPSC.

Click here for full bill text.

“The Virginia Graeme Baker Pool & Spa Safety Act is a perfect example of how sensible and sound policy can save lives. Since the passage of the legislation, entrapment deaths in public pools have ceased and have been substantially reduced in private pool settings. This shows how well-designed legislation can have direct impacts on child safety and engineer our pool environments to be safer for all. The reauthorization not only ensures communities continue to be safe from this preventable tragedy, but also that water safety efforts will continue across the country to address the more than 4,000 fatal drownings the US experiences each year,” said Alissa Magrum, Executive Director of the National Drowning Prevention Alliance (NDPA).

“The passage of the VGB Act, in a significant way, has helped to make some sense of the tragic death of my daughter, Graeme, and so many children whose lives have been lost in preventable drownings. The reauthorization of the legislation also makes sense, as we have learned over the past 15 years what works well and what might be done even better to ensure water safety. I am fully support of the bill,” said Nancy Baker, mother of Virginia Graeme Baker and water safety advocate.

“The Virginia Graeme Baker Pool and Spa Safety Act has saved lives. Reauthorization of this Act allows for its proven safety standards to continue to do its good work, making pools and spas across the United States safer for those who use them. This legislative intervention creates actions and outcomes that those working in public health so often hope to see. It works! The associated Pool Safely funding mechanism is also an essential piece and has been effective in keeping the message of water safety top of mind. The American Red Cross fully supports this reauthorization and all efforts to reduce drownings across the country,” said William Ramos, Ph.D., American Red Cross Scientific Advisory Council Aquatics Chair.

“On behalf of the nation’s YMCAs, which operate more than 2,100 pools across the country, YMCA of the USA strongly supports the Virginia Graeme Baker Pool and Spa Safety Reauthorization Act. As the largest provider of swim instruction in the country, the Y greatly appreciates the inclusion of nonprofits in the act’s Swimming Pool Safety Grant Program, which creates opportunities for community-based organizations like YMCAs to secure additional resources to raise awareness about drowning prevention and make swim instruction more accessible to those who need it,” said Suzanne McCormick, President and CEO, YMCA of the USA.

“Our daughter Abbey’s hope was that no other child would experience a death or injury from a dangerous pool or spa. The VGB act was the realization of that hope. We can all still do better with the reauthorization of this critical safety legislation. We unequivocally support this bill,” said Scott and Katey Taylor, founders of Abbey’s Hope Charitable Foundation.

“The core purpose of the Pool & Hot Tub Alliance is to prioritize safety and health in pool and hot tub environments. We have been unwavering in our support for the reauthorization of the VGB Act, recognizing its significant impact on saving lives. PHTA is proud to play a role in the VGB Act through the development of two industry safety standards that establish stringent requirements for suction outlet fitting assemblies and suction entrapment avoidance. By reauthorizing this legislation, we will ensure a substantial reduction in fatal drownings—a cause that deserves universal backing,” said Sabeena Hickman, CAE, President & CEO of the Pool & Hot Tub Alliance (PHTA).

“The VGB Act, passed only five months after our son Zachary’s death, brought a semblance of peace and hope to our family. That no one has died by entrapment in a public pool since the VGB Act was passed is a victory that we should all celebrate but, there is more work to be done. Even now, sixteen years later, we are seeing recalls on drains that aren’t compliant. The reauthorization of this bill is vital to our communities and will ensure that all public pools comply with entrapment prevention requirements and will support efforts to address traditional forms of drowning. Our family and the ZAC Foundation for Children’s Safety, founded in our son’s honor, are committed to the success of this bill,” said Karen and Brian Cohn, founders of ZAC Foundation.

“CamerEye has always been a vocal leader in advocating for safe aquatic environments—they are absolutely critical to industry. Not only does Virginia Graeme Baker Act reiterate the requirement for safe and compliant drain covers, it incentivizes state, local, and Tribal jurisdictions to implement and enforce swimming pool and spa safety standards which has been proven to save lives. This act is a perfect example of how policy can positively impact saving lives and this reauthorization represents a chance to build on that success. We’re in full support of this reauthorization act.” said Sai Reddy, founder/CEO of CamerEye.ai.

“The Virginia Graeme Baker Act is a shining example of how good policy can save lives, and this reauthorization represents a chance to build on that success. This is also an opportunity to address the serious and persistent inequities that exist around water safety,” said Safe Kids Worldwide President Torine Creppy.

####

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

Source: United Nations 2-b

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

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

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

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

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

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

Human toll rising

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

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

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

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

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

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

Refugee crisis deepens

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

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

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

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

Source: United Nations 2-b

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

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

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

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

Gang control expands

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

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

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

Rise of ‘vigilante’ groups

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

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

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

Human trafficking

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

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

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

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

MIL-OSI United Nations: Advance Cooperation Grounded in Science to Safeguard Ocean for Everyone’s Benefit, Secretary-General Urges in International Seabed Authority Anniversary Message

Source: United Nations General Assembly and Security Council

SG/SM/22737

Following is UN Secretary-General António Guterres’ message for the thirtieth anniversary of the International Seabed Authority, in Kingston today:

I am pleased to join you in celebrating the thirtieth anniversary of the International Seabed Authority — a cornerstone in the governance of our ocean commons.

The international seabed area is not the domain of any nation. It is the common heritage of humankind — a principle enshrined in the United Nations Convention on the Law of the Sea, which must continue to guide us. We must bring together our global efforts in climate action, biodiversity preservation, and marine protection.

The deep ocean remains one of our last frontiers. It holds great promise but also requires great caution.

For thirty years, the Authority has helped protect this shared realm through peaceful, sustainable and inclusive governance. Today, it is navigating complex challenges with care and clarity, and I commend its commitment to finding balanced and effective solutions.

As we mark this milestone, let us advance cooperation grounded in science, and keep working together to safeguard the ocean for the benefit of all people, everywhere.

For information media. Not an official record.

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

Members of the Aggression and Complexity in Schools Action Team

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

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

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

Demetrios Nicolaides, Minister of Education and Childcare

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

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

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

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

Mike McMann, president, College of Alberta School Superintendents

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

Marilyn Dennis, president, Alberta School Boards Association

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

Quick facts

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

Related information

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

Related news

Addressing classroom aggression and complexity (June 30, 2025)

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

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

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

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

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

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

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

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

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

Mike McMann, président, College of Alberta School Superintendents

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

Marilyn Dennis, présidente, Alberta School Boards Association

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

En bref

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

Renseignements connexes (en anglais seulement)

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

Nouvelles connexes

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

MIL OSI Canada News –

MIL-OSI USA: W.W. Industrial Group Recalls Pear Slices in Juice Due to Elevated Levels of Lead and Cadmium

Source: US Department of Health and Human Services – 3

Summary

Company Announcement Date:
July 23, 2025
FDA Publish Date:
July 23, 2025
Product Type:
Food & BeveragesContaminants
Reason for Announcement:

Recall Reason Description
Potential Metal Contaminant – Lead and Cadmium

Company Name:
WW Industrial Group
Brand Name:

Brand Name(s)
Parashore

Product Description:

Product Description
Canned Sliced Pears

Company Announcement
W.W. Industrial Group, Inc., NY is recalling Parashore Pear Slices in juice, 15 oz, because they have the potential to be contaminated with elevated levels of lead and cadmium.
Lead and cadmium are toxic substances present in our environment in small amounts and everyone is exposed to some of these heavy metals from daily actions such as inhaling dust, eating food, or drinking water. In general, the small exposure to lead within the U.S. population does not pose a significant public health concern.
However, exposure to larger amounts of lead and cadmium can cause poisoning. While these heavy metals can affect nearly every bodily system, its effects depend upon the amount and duration of lead exposure and age. Symptoms can include abdominal pain, vomiting, lethargy, irritability, weakness, behavior or mood changes, delirium, seizures, and coma. However, infants, young children and the developing fetus can be affected by chronic exposure to amounts of heavy metals that may not result in obvious symptoms of lead poisoning. A child with heavy metal poisoning may not look or act sick. Heavy metal poisoning in children can cause: learning disabilities, developmental delays, and lower IQ scores.
Product was distributed through Grocery Outlet stores in California and other Grocery Outlet stores across the US.
The recalled product is packaged in a 15oz can and labeled as PARASHORE Pear Slices in Juice, 15oz (425 g), UPC#704817164237. The specific lot found positive for heavy metals was Lot 3700/01172 6122J, Prod: 02/19/2024, Best by 2/19/2027.
No illnesses have been reported as of 07/22/2025.
The heavy metal contamination was discovered via sampling by the Maryland Department of Health which is part of the FDA Laboratory Flexible Funding Model program.
The company has recalled the products and is continuing an investigation to determine cause.
Consumers who have purchased Parashore Pear Slices in Juice 15oz (425 g) should not consume the products and are urged to discard in the trash or return them to the place of purchase for a full refund. Consumers with questions may contact the company at 516-676-9188 Monday to Friday 10AM – 4PM EST.
This recall is being made with the knowledge of the U.S. Food and Drug Administration.

Company Contact Information

Consumers:
W.W. Industrial Group
516-676-9188

Product Photos

Content current as of:
07/23/2025

Regulated Product(s)

Topic(s)

Follow FDA

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

Source: US State of New York

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

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

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

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

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

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

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

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

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

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

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

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

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

India’s media sector booms with regional growth and digital expansion: govt

Source: Government of India

Source: Government of India (4)

India’s media and broadcasting sector is undergoing a dynamic transformation, driven by steady growth in traditional platforms and rapid advancement in the digital space.

In a statement presented in the Lok Sabha, Union Minister of State for Information and Broadcasting Dr. L. Murugan highlighted key developments across print, television, and public broadcasting.

The number of registered publications has increased from 1.05 lakh in 2014-15 to 1.55 lakh in 2024- 25, reflecting the strong rise of regional and vernacular media. Private satellite television channels have also grown from 821 to 908 over the same period, underscoring the sector’s resilience and adaptability.

Doordarshan’s Free Dish platform now carries 92 private channels along with 50 DD channels, offering content in multiple regional languages. This multilingual outreach has played a crucial role in bridging the information gap in remote and underserved areas.

The platform’s expansion is part of a larger strategy to democratize access to news and entertainment. Under the Broadcasting Infrastructure and Network Development (BIND) Scheme 2021- 26, Prasar Bharati continues to modernize its transmission infrastructure.

As part of this initiative, three new transmitters have been approved for Himachal Pradesh- including a 5kW unit in Mandi and 1kW FM transmitters in Chamba and Dharampur.

With a total outlay of ₹2,539 crore, the BIND scheme aims to modernize All India Radio and Doordarshan facilities, expand FM coverage to over 80 percent of the population, and strengthen signal reach in strategically important border areas.

https://www.yanmar.com/global/marinecommercial/news/2023/11/09/130776.html

MIL-OSI Submissions: Maritime News – Passenger Ship HANARIA Equipped with Yanmar’s Maritime Hydrogen Fuel Cell System Wins Marine Engineering of the Year 2024

Source: Yanmar Holdings

July 23, 2025 – Osaka, Japan – The passenger vessel HANARIA, equipped with Yanmar Power Technology Co., Ltd.’s GH240FC maritime hydrogen fuel cell system, has received the Marine Engineering of the Year 2024 (Dokou Memorial Award). The honor is awarded by the Japan Institute of Marine Engineering for outstanding technological innovation in the field. This year, the award recognized four companies: MOL Techno-Trade, Ltd., HONGAWARA Ship Yard Co., Ltd., Toyota Motor Corporation, and Yanmar Power Technology, a subsidiary of Yanmar Holdings.

HANARIA is Japan’s first hybrid passenger ship powered by both hydrogen and biodiesel. Operated by MOL Techno-Trade, Ltd., the vessel features Yanmar’s first maritime hydrogen fuel cell system, a proprietary lithium-ion battery system developed by Yanmar, and an integrated management system that controls all onboard power. It features two operating modes: a zero-emission mode using only hydrogen fuel cell systems and lithium-ion batteries, and a hybrid mode that combines hydrogen fuel cells, lithium-ion batteries, and a biodiesel generator running in parallel.

The onboard systems aim to reduce the environmental footprint of vessels—a challenge in the hard-to-electrify maritime sector—while also enhancing passenger comfort by significantly cutting noise, vibration and exhaust odor.

Furthermore, HANARIA has been selected for the “Ship of the Year 2024,” an award presented by the Japan Society of Naval Architects and Ocean Engineers that recognizes vessels demonstrating technical, artistic, and social excellence. This marks the first time in history that a vessel has received both the “Marine Engineering of the Year” and the “Ship of the Year” awards.

The Yanmar Group continues to advance its sustainability goals through its YANMAR GREEN CHALLENGE 2050 initiative and remains committed to providing decarbonization solutions that meet customer needs.

References

Press release (November 9, 2023): Yanmar Makes First Delivery of Maritime Hydrogen Fuel Cell System to Hybrid Passenger Ship

Press release (July 9, 2025): Yanmar Maritime Hydrogen Fuel Cell System Wins Red Dot Design Award 2025

https://www.yanmar.com/global/news/2025/07/09/154079.html

About Yanmar

With beginnings in Osaka, Japan, in 1912, Yanmar was the first ever to succeed in making a compact diesel engine of a practical size in 1933. A pioneer in diesel engine technology, Yanmar is a global innovator in a wide range of industrial equipment, from small and large engines, agricultural machinery and facilities, construction equipment, energy systems, marine, to machine tools, and components — Yanmar’s global business operations span seven domains. On land, at sea, and in the city, Yanmar provides advanced solutions to the challenges customers face, towards realizing A Sustainable Future. For more details, please visit the official website of Yanmar Holdings Co., Ltd.

MIL OSI – Submitted News –

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

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

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

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

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

Boosting global co-operation

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

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

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

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

Urgent human development needs

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

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

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

Scant commitment to action

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

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

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

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

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

Poverty and inequality worsens

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

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

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

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

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

Directing money to where it’s needed most

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

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

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

Supporting green, equitable development

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

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

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

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

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

MIL OSI Analysis –

MIL-OSI USA: Gov. Kemp Announces TCSG, USG Sign First Articulation Agreement Since Passage of Top State for Talent Act

Source: US State of Georgia

ATLANTA – Governor Brian Kemp today announced that the Technical College System of Georgia (TCSG) and the University System of Georgia (USG) signed an articulation agreement to help nursing students seamlessly advance their education and careers, the first of its kind following the passage of HB 192, the Top State for Talent Act. The agreement allows graduates of TCSG’s associate degree in nursing programs to transfer directly into participating USG institutions to complete a Bachelor of Science in Nursing (BSN), establishing a true 2+2 transfer model between the two systems.

“Georgia’s success as the No. 1 state for business depends on a strong pipeline of talent, especially in critical fields like healthcare,” said Governor Brian Kemp. “This agreement between TCSG and USG is a perfect example of how our state is working together to expand opportunities for students, strengthen our workforce, and ensure that every Georgian has the opportunity to succeed.”

Governor Kemp has made aligning the state’s workforce pipeline with the needs of employers a top priority. The Top State for Talent Initiative, including the state’s first unified high-demand career list, seeks to bring private and public sector leaders together to help Georgians pursue the opportunities available to them statewide.

This partnership between TCSG and USC supports the initiative by developing and retaining a highly skilled healthcare workforce. Under the agreement, students who graduate from a TCSG college with an Associate of Science in Nursing (ASN) will be eligible for admission into BSN programs at participating USG institutions. This streamlined transition offers students a cost-effective and accessible option to continue their education without interruption or loss of credit.

“With this agreement, we’re eliminating barriers and opening doors for more Georgians to pursue rewarding careers in nursing,” said TCSG Commissioner Greg Dozier. “It’s a strategic move that helps our students, our healthcare partners, and our communities—especially as we work together to fill critical nursing shortages across the state.”

“Georgia’s growing population means a greater demand for healthcare, and this partnership helps meet it by preparing more nurses, especially in rural and underserved areas,” said USG Chancellor Sonny Perdue. “As we align programs, we’re making it easier for students to grow their skills. It’s a smart investment that drives student success, expands access to care, and builds a more prosperous Georgia.”

In addition to easing the transition between systems, the agreement expands career pathways for students by creating a clear route from an associate degree to a bachelor’s degree in one of the state’s most in-demand fields. It is part of a broader strategy by TCSG and USG to increase educational attainment and create upward mobility for students pursuing careers in high-demand industries, including nursing, healthcare, and allied health professions.

For more information, visit www.tcsg.edu or www.usg.edu.

MIL-OSI USA: Smoke and Wildfires Impacting Road Safety Across Oregon

Source: US State of Oregon

strong>SALEM, Ore. – As wildfires continue to impact parts of Oregon, Governor Tina Kotek has declared a State of Emergency, effective July 16, 2025, through December 31, 2025. Travelers are urged to use extra caution on the roads and know the conditions in the areas they are traveling to. Smoke can severely reduce visibility and create dangerous driving conditions. In some areas, wildfire activity has led to road closures or detours. The Oregon Department of Transportation (ODOT), Oregon Department of Emergency Management (OEM), and Oregon Department of Environmental Quality (DEQ) are working together to keep Oregonians safe—and they’re asking the public to do their part before hitting the road.

“If you’re planning a road trip this summer, make sure your car is ready,” OEM spokesperson, Erin Zysett said. “Start your trip with a full tank of gas or electric charge, check your tires and air conditioner, and know your route. Conditions can change quickly during wildfire season.”

OEM urges travelers to carry a well-stocked emergency car kit in case they become stranded or delayed. Your kit should include:

Jumper cables
Flares or a reflective triangle
Flashlight and extra batteries
First aid kit
Blanket
Map or printed directions
Cell phone and car charger
Backup power supply
Hand-crank Weather Radio
N95 mask (to help filter smoky air)
Plastic sheeting and duct tape (to shelter in place if needed)
Wet wipes, garbage bags, and toilet paper for sanitation
Whistle to signal for help
Water and non-perishable snacks
Cash or traveler’s checks
Portable shovel

“Smoke affects visibility as well as air quality and can lead to sudden changes in driving conditions,” said Chris Varley, DEQ Spokesperson. “If visibility is poor or the air is hazardous, consider delaying your trip. Your safety comes first. If you must drive in smokey conditions, close all the windows and direct the car’s air system to recirculate to help reduce the amount of smoke entering the car.”

Before You Go:

MIL-OSI: TowneBank Reports Second Quarter 2025 Earnings

Source: GlobeNewswire (MIL-OSI)

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

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

Highlights for Second Quarter 2025:

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

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

Quarterly Net Interest Income:

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

Quarterly Provision for Credit Losses:

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

Quarterly Noninterest Income:

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

Quarterly Noninterest Expense:

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

Consolidated Balance Sheet Highlights:

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

Investment Securities:

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

Loans and Asset Quality:

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

Deposits and Borrowings:

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

Capital:

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

⁽¹⁾ Preliminary.

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

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

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

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

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

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

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

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

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

TOWNEBANK
Selected Data (unaudited)
(dollars in thousands)

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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


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

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


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

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

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


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

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


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

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

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

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

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


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

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

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

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

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

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


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

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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


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

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

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

Source: GlobeNewswire (MIL-OSI)

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

Highlights for the fourth quarter of fiscal 2025:

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

Dividend Declared:

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

Conference Call:

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

Balance Sheet Summary:

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

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

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


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

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

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

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

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

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

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

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

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

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


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

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

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

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

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

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

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

Quarterly Income Statement Summary:

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

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

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

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

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

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

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

Forward-Looking Information:

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

Southern Missouri Bancorp, Inc.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION


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

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

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

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

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

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

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

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

(1) Non-GAAP financial measure.


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

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

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

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


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

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

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


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

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

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

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

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

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

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

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

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

Source: GlobeNewswire (MIL-OSI)

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

Highlights for the fourth quarter of fiscal 2025:

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

Dividend Declared:

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

Conference Call:

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

Balance Sheet Summary:

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

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

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


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

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

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

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

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

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

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

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

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

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


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

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

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

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

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

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

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

Quarterly Income Statement Summary:

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

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

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

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

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

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

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

Forward-Looking Information:

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

Southern Missouri Bancorp, Inc.
UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION


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

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

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

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

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

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

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

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

(1) Non-GAAP financial measure.


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

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

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

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


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

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

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


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

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

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

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

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

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

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

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

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

Source: GlobeNewswire (MIL-OSI)

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

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

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

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

Conference Call

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

Live Telephone Dial-In

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

Live Webcast Log-In

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

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

Second Quarter 2025 Key Measures

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

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

Important Note Regarding Forward-Looking Statements

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

About Live Oak Bancshares, Inc.

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

Contacts:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

MIL-OSI: Home Federal Bancorp, Inc. of Louisiana Increases Quarterly Cash Dividend for 12th Consecutive Year

Source: GlobeNewswire (MIL-OSI)

SHREVEPORT, La., July 23, 2025 (GLOBE NEWSWIRE) — Home Federal Bancorp, Inc. of Louisiana (the “Company”) (NASDAQ: HFBL), the holding company for Home Federal Bank, announced today that its Board of Directors at their meeting on July 23, 2025, declared a quarterly cash dividend of $0.135 per share on the Company’s common stock. The dividend is payable on August 18, 2025, to the shareholders of record at the close of business on August 4, 2025.

James R. Barlow, Chairman of the Board, President and Chief Executive Officer, stated, “This twelfth consecutive annual increase in our dividend rate, and 81^st consecutive quarterly cash dividend, reflects our continued commitment to creating value for our shareholders and confidence in the financial strength and long-term prospects for our Company. Based on our earnings for the trailing four fiscal quarters ended March 31, 2025, the increase reflects a payout ratio of approximately 49.5%.”

Home Federal Bancorp, Inc. of Louisiana is the holding company for Home Federal Bank which conducts business from its ten full-service banking offices and home office in northwest Louisiana. Additional information is available at www.hfb.bank.

Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” We undertake no obligation to update any forward-looking statements.

Contact:

Home Federal Bancorp, Inc. of Louisiana

James R. Barlow, Chairman of the Board, President and

Chief Executive Officer

(318) 222-1145