Category: Ukraine

  • MIL-OSI Analysis: Gaza and Ukraine are both waiting for action

    Source: The Conversation – UK – By Jonathan Este, Senior International Affairs Editor, Associate Editor

    For the past few weeks the headlines about Gaza have focused on the hundreds of people who have been killed while queueing for food. The aid distribution system put in place in May, backed by the US and Israel and run by the Gaza Humanitarian Foundation, has proved to be chaotic and allegedly resulted in violence, with both Israel Defense Forces personnel and armed Palestinian gangs blamed for killing about 1,000 people in the two months the new system has been operating.

    Now the headlines are focusing on the growing number of people dying of starvation.

    Harrowing reports from the Gaza Strip report almost daily on the children dying of malnutrition in hospitals and clinics that simply don’t have the food to keep them alive. Writing in the Guardian this week, a British volunteer surgeon working in one of Gaza’s hospitals, Nick Maynard, described patients who “deteriorate and die, not from their injuries, but because they are too malnourished to survive surgery”.

    The UK and 27 other countries this week has condemned the “drip feeding of aid and the inhumane killing of civilians” who are trying to get food and water. And yet, writes Simon Mabon, still the world’s leaders look on: “Most are apparently content to condemn – but little action has been taken.”

    Mabon, a professor of international relations at Lancaster University, quotes the latest report from the IPC, which monitors food security in conflict situations. It estimates that 500,000 people in Gaza are considered to be facing “catastrophe”, while a further 1.1 million fall into the “emergency” risk category. Both categories anticipate a steadily rising death rate among civilians in Gaza.

    So how can Israel’s allies apply pressure on Benjamin Netanyahu’s government to bring an end to the violence and allow Palestinian civilians access to the food, water and medical supplies they so desperately need?

    Mabon canvasses a range of options. First of all, countries that have yet to recognise the state of Palestine can do so. It’s nonsense, Madon believes, to talk of a two-state solution – as the UK government does – when you haven’t actually recognised the second state in the equation.

    Then they could stop selling arms to Israel. Many countries already have. But the US still issues export licenses for some weapons that are sold to Israel.

    There are a plethora of other things world leaders could do to pressure Israel. Mabon recommends having a look at what the world did to isolate South Africa during the apartheid years, measures which eventually helped bring about meaningful change there.




    Read more:
    Gaza is starving – how Israel’s allies can go beyond words and take meaningful action


    As for Netanyahu, the Israeli prime minister is reported to be considering an early election. In previous months this looked like a move freighted with jeopardy. An election loss brought on by a disenchanted electorate, heartbroken at the hostage situation and exhausted by the conflict, would probably mean having to face the charges of corruption which have hung over him for more than five years.

    But recent polls have suggested a bump in popularity following his 12-day campaign against Iran. Netanyahu is nothing if not a clever political manipulator. But Brian Brivati, a professor of contemporary history and human rights at Kingston University, believes that to have a chance of winning, the prime minister will need to fight a campaign on three narratives of his government’s success: securing the release of the hostages, defeating Hamas and delivering regional security. “It is a tall order,” Brivati concludes.




    Read more:
    Israel: Netanyahu considering early election but can he convince people he’s winning the war?


    Anyone following the situation in Gaza over the past 18 months will have encountered Francesca Albanese, the UN’s special rapporteur for Palestine’s occupied territories. For three years she has monitored the human rights situation in Gaza and the West Bank, delivering trenchant criticism of Israel’s conduct and those who, by their inaction – and sometimes contrivance – have enabled it.

    Earlier this months, the US government imposed sanctions on Albanese, because – as US secretary of state Marco Rubio insisted – she has engaged with the International Criminal Court (also subject to US sanctions) “in efforts to investigate, arrest, detain, or prosecute nationals of the United States or Israel”. Also she has written “threatening letters to dozens of entities worldwide, including major American companies”.

    Alvina Hoffman, an expert in diplomatic affairs and human rights at SOAS, University of London, explains what a special rapporteur does and why their work is so valuable in the defence of human rights.




    Read more:
    The US has sanctioned UN special rapporteur Francesca Albanese – here’s why she’s the wrong target


    Dispatches from Ukraine

    To Istanbul, where delegations from Russia and Ukraine met yesterday for their third round of face-to-face talks. All 40 minutes of them. There was another agreement of prisoner swaps and the two sides decided to set up some working groups to look into various political, military and humanitarian issues – but online rather in person.

    The brevity of the talks came as no surprise to Stefan Wolff. Wolff, an expert in international security at the University of Birmingham who has provided commentary for The Conversation throughout the conflict in Ukraine, points out that both sides remain wedded to their maximalist war aims. For Russia, this is for Ukraine to accept Russia’s annexation of Crimea and four provinces of eastern Ukraine, a ban on Ukraine’s membership of Nato and a much reduced military capacity. For Ukraine, it is getting their territory back and Russian acceptance of their national sovereignty, meaning it gets to determine for itself what alliances it seeks.

    Donald Trump has told Vladimir Putin that, if there’s no ceasefire in 50 days, he’ll apply harsh secondary sanctions on the countries buying Russian oil and that he plans to supply Ukraine with American weapons (via Nato’s European member states, that is). Wolff believes both sides will now play the waiting game. They will calculate their next move after September 2, when the 50 days run out, and when they know more about what the US president plans to do.




    Read more:
    Russia-Ukraine talks: both sides play for time and wait for Donald Trump’s 50 days to run out


    Volodymyr Zelensky, meanwhile, faces pressure from his own people. There have been days of protest at his decision to bring two formerly independent anti-corruption organisations under the direct control of the government. He argues that this was necessary to prevent Russian infiltration, while critics are saying that the Ukrainian president has launched a power grab designed to prevent independent investigation of alleged corruption against people close to him.

    Jenny Mathers says these protests, which involve people from all political shades, including people who have fought in the defence of Ukraine since 2022, some with visible injuries, represents a fracture of the “informal agreement between the government and society to show a united front to the world while the war continues”.

    Ukrainians protest after Zelensky signs law clamping down on anticorruption agencies.

    It’s not as if Zelensky is in clear and present danger of losing his job. His party holds a majority of seats in the Ukrainian parliament, so he governs without having to depend on coalition partners. And the country’s constitution prohibits the holding of elections in wartime – whatever Putin, who regularly insists that Zelensky is an illegitimate leader because he is governing past his term limit, might think. Plus his approval rating sits at 65%.

    Zelensky has been quick to soften his stance on this. Mathers says that political corruption is a very sore point in Ukraine, where there was decades of it until the Maidan protests of 2013-14 unseated the pro-Russian president Viktor Yanukovych. As she writes here, “the ‘Revolution of Dignity’ that rejected Yanukovych’s leadership and his policies was also a resounding demonstration of the strength of Ukraine’s civil society and its determination to hold its elected officials to account. Zelensky would be rash not to heed that.

    He also knows it’s important for him to present a squeaky clean image to his supporters in the west. So while the protests may not present an immediate threat to his own position, he knows that unless he acts to root out corruption in Ukraine, it’ll be a threat to the future of the country itself.




    Read more:
    Ukrainian protests: Zelensky faces biggest threat to his presidency since taking power


    But ethicist Marcel Vondermassen from the University of Tübingen believes another recent decision by the Ukrainian government is storing up trouble for the future. Ukraine has recently announced its decision to pull out of the Ottawa convention, the treaty that forbids the use of anti-personnel landmines.

    In doing so, he’s following the example of Finland, Poland, Lithuania and Estonia which have all also quite the treaty in recent months for fear of Russian aggression.

    But as Vondermassen points out, landmines don’t usually switch themselves off when a conflict ends and people are still being killed an maimed in former conflict zones around the world. Often it is farmers at work or children at play who are the victims. If other ways to protect countries from aggression aren’t pursued, as he puts it, in future decades we’ll still be “counting thousands of child casualties … from the landmines laid in the 2020s”.




    Read more:
    Ukraine joins other Russian neighbours in quitting landmines treaty: another deadly legacy in the making


    Thailand-Cambodia: centuries-old dispute flares again

    A dispute between the two south-east Asian countries that has been simmering since May flared into life yesterday when five Thai soldiers patrolling the border region were injured after stepping on a landmine – the second such incident in the past week. Both countries have sealed their border and there have been tit-for-tat ambassadorial expulsions.

    Cambodia fired rockets and artillery into Thailand, killing 12 civilians. Thailand in turn has launched airstrikes against Cambodia. Both countries are blaming the other for starting it.

    Petra Alderman, an expert in south-east Asian politics from London School of Economics and Political Science, traces the origins of this row, which go back to the colonial era in the 19th and early 20th centuries.




    Read more:
    Thailand and Cambodia’s escalating conflict has roots in century-old border dispute


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    ref. Gaza and Ukraine are both waiting for action – https://theconversation.com/gaza-and-ukraine-are-both-waiting-for-action-261894

    MIL OSI Analysis

  • MIL-OSI Russia: At least 33 people were injured in an airstrike on the Ukrainian city of Kharkov

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    An important disclaimer is at the bottom of this article.

    Source: People’s Republic of China – State Council News

    KYIV, July 24 (Xinhua) — At least 33 people, including three children, were injured in a Russian airstrike on Thursday in Kharkiv, Ukraine’s second-largest city in the northeast of the country, the Ukrainian Interior Ministry said on Telegram.

    According to Ukrainian President Volodymyr Zelensky, the Russian army dropped two aerial bombs on Kharkiv, one of which fell near a residential building, and the second on the territory of a civilian enterprise, which led to a fire.

    Rescuers, police and doctors are working at the sites of the strikes. –0–

    Please note: This information is raw content obtained directly from the source of the information. It is an accurate report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

    .

    MIL OSI Russia News

  • India-UK relations enter new era with landmark deals on trade, tech and security

    Source: Government of India

    Source: Government of India (4)

    Prime Minister Narendra Modi held wide-ranging talks with UK Prime Minister Keir Starmer during his official visit to the United Kingdom from July 23-24. The meeting, held at the British Prime Minister’s country residence, Chequers in Buckinghamshire.

    The two leaders held a one-on-one meeting followed by delegation-level talks, covering the full spectrum of bilateral cooperation.

    During the talks, the two sides welcomed the signing of the historic India-UK Comprehensive Economic and Trade Agreement (CETA). The agreement is expected to boost trade, investment, economic collaboration, and job creation in both countries, taking the strategic partnership to a new level.

    In a key development, the two countries also agreed to negotiate a Double Contribution Convention, which will support professionals and service industries by reducing operational costs and promoting competitiveness. Prime Minister Modi also proposed deeper cooperation between India’s GIFT City-India’s first international financial services centre-and the UK’s financial ecosystem.

    The two leaders adopted the India-UK Vision 2035, a roadmap for the next decade that aims to enhance cooperation in the areas of economy, technology, innovation, research, education, defence, climate action, health, and people-to-people ties.

    The finalisation of a Defence Industrial Roadmap was also welcomed. It aims to promote joint design, development, and production of defence products for domestic use and global markets. Both leaders expressed satisfaction with the growing defence partnership and regular engagement between the armed forces.

    Underlining the importance of emerging technologies, the Prime Ministers agreed to accelerate the implementation of the Technology and Security Initiative (TSI). The TSI, which completed one year, focuses on areas such as telecom, critical minerals, AI, biotechnology, semiconductors, health technology, advanced materials, and quantum research.

    In the education sector, the leaders hailed the growing collaboration under India’s New Education Policy (NEP). Notably, Southampton University became the first foreign university to open a campus in India, in Gurugram, on June 16. Several other UK universities are expected to follow suit.

    The two Prime Ministers also acknowledged the significant contribution of the Indian diaspora in the UK across various fields, calling them a “living bridge” between the two countries.

    Prime Minister Modi thanked Prime Minister Starmer for his support and solidarity following the Pahalgam terror attack. Both leaders reiterated their commitment to combat terrorism and agreed to intensify bilateral cooperation to counter extremism and radicalisation. PM Modi also sought the UK’s assistance in bringing economic offenders and fugitives to justice.

    The leaders also exchanged views on key regional and global developments, including in the Indo-Pacific, West Asia, and the Russia-Ukraine conflict.

    Prime Minister Modi extended an invitation to Prime Minister Starmer to visit India at a mutually convenient time and thanked him for the warm hospitality.

    The following documents were signed/adopted by the two sides during the visit:

    ● Comprehensive Economic and Trade Agreement [CETA]

    ● India-UK Vision 2035

    ● Defence Industrial Roadmap

    ● Statement on Technology and Security Initiative

    ● MoU between Central Bureau of Investigation, India and National Crime Agency of UK

  • MIL-OSI Submissions: Ukrainian protests: Zelensky faces biggest threat to his presidency since taking power

    Source: The Conversation – UK – By Jennifer Mathers, Senior Lecturer in International Politics, Aberystwyth University

    Protests have erupted in Kyiv and other Ukrainian cities against a new law that threatens the independence of Ukraine’s anti-corruption institutions. The legislation was hastily passed on July 22 by parliament and signed by the Ukrainian president, Volodymyr Zelensky, that same day.

    It places Ukraine’s national anti-corruption bureau and its special anti-corruption prosecutor’s office under the direct control of the prosecutor general, one of Zelensky’s appointed officials. Zelensky has argued that the measure was necessary to address Russian infiltration of anti-corruption bodies.

    Critics of the measure, however, believe the real purpose of the law is to give the president the power to quash ongoing investigations into alleged corruption by members of his inner circle. These include his close ally and former deputy prime minister, Oleksiy Chernyshov.

    Politicians from opposition parties and civil society activists also regard the new law as an example of the president attempting to take advantage of wartime conditions to silence critics and consolidate power.

    The protests have involved thousands of ordinary people. This includes veterans of the war against Russia’s invasion, some with visible war injuries such as missing limbs. Anger at the attempt to curb the independence of anticorruption bodies has broken the informal agreement between the government and Ukrainian society to show a united front to the world while the war continues.

    The protests may be the most serious domestic political challenge Zelensky has faced since he was elected president in 2019.

    Ukrainians protest after Zelensky signs law clamping down on anticorruption agencies.

    Formally, Zelensky’s political position is secure. His Servant of the People party holds the majority of seats in parliament and governs without the constraints of coalition partners. Zelensky and his party will also not face voters anytime soon. There is a ban on holding elections during martial law, which is due to continue for the duration of the war.

    Zelensky is not unpopular in Ukraine. According to a survey conducted in June by the Kyiv International Institute of Sociology, Zelensky’s personal popularity was running at 65%. This is down from the heady heights of 90% in the first few months after Russia’s 2022 invasion, but up significantly from 52% in December 2024.

    However, Zelensky was quick to respond to the street protests by promising to reverse the new law. He said he would submit a new bill to parliament to restore independence to the agencies. The speed of his response reveals the sensitivity of the president – and indeed most Ukrainian politicians – to criticism on the corruption issue.

    Why corruption is a big issue

    Corruption is a topic that resonates strongly with Ukrainian society. Anger at the corruption of Viktor Yanukovych’s presidency fuelled the Maidan protests of 2013 and 2014, which began in response to his decision to break off negotiations with the EU and instead pursue closer political and economic ties with Russia.

    The “revolution of dignity” that followed robustly rejected Yanukovych’s leadership and his policies, and ultimately saw him ousted from power. The revolution was a resounding demonstration of the strength of Ukraine’s civil society and its determination to hold its elected officials to account.

    Any suggestion that Ukraine is failing to address corruption is also a matter of great concern for Ukraine’s international supporters. This is especially the case for major lenders such as the International Monetary Fund. Its willingness to disperse the large loans that help keep the Ukrainian economy functioning depends on Kyiv reaching the good governance milestones it sets.

    European leaders have expressed concern at the new law and the possibility that Zelensky may be taking a backwards step when it comes to dealing with corruption.

    President of the European Commission, Ursula von der Leyen, phoned Zelensky to express her strong concerns and ask for an explanation for diluting the independence of anti-corruption bodies. French and German leaders have also indicated that they intend to hold discussions with Zelensky about the issue.

    Meanwhile, Russia has been quick to take advantage of the protests in Ukraine. According to intelligence from Ukraine’s ministry of defence, Moscow has already distributed doctored photographs of the protesters that show them holding pro-Russian signs. It has falsely claimed that Ukrainians are coming on to the streets to demand an immediate end to the war.

    So far, there are no indications that these protests will spill over from demanding the reversal of one controversial piece of legislation into calls for a change of government. Some protesters have even been explicit in their remarks to the media that they are broadly supportive of Zelensky, but are calling on him to take action on this specific issue.

    However, Zelensky cannot afford to be complacent. He needs to act quickly to keep his domestic and international supporters on side. A great deal of effort has been expended to demonstrate Ukraine’s commitment to democratic values and its suitability to join western institutions like the EU and Nato. Any hint of backsliding on anti-corruption could undermine that message.

    Ukrainians continue to be remarkably united in their support for the war effort and their approval of the armed forces. But the mobilisation process is itself tainted with corruption. Ordinary citizens are reluctant to respond to the state’s call for more soldiers when it is widely known that the family members of powerful and wealthy Ukrainians are able to avoid military service and instead lead comfortable lives abroad.

    Zelensky cannot afford to let dissatisfaction with corruption grow. Even if it does not threaten his hold on power today, society’s anger at corrupt practices and the inequalities they create is already damaging the war effort. Ukraine’s political leaders need to demonstrate that their commitment to democracy is as strong as that of the society that they lead.

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

    ref. Ukrainian protests: Zelensky faces biggest threat to his presidency since taking power – https://theconversation.com/ukrainian-protests-zelensky-faces-biggest-threat-to-his-presidency-since-taking-power-261876

    MIL OSI

  • MIL-OSI Analysis: Ukraine joins other Russian neighbours in quitting landmines treaty: another deadly legacy in the making

    Source: The Conversation – UK – By Marcel Vondermassen, Scientific Coordinator and Deputy Executive Manager of the IZEW, University of Tübingen

    Ukraine’s president, Volodymyr Zelensky, recently signed a decree to withdraw from the Ottawa convention banning the use of anti-personnel landmines. This move follows the example of Finland, Poland, Estonia and Lithuania, who all quit the treaty in recent months.

    The logic behind these states withdrawing from the treaty is mostly because of the threat posed by Russia. At first glance landmines seem like a cost-effective way to deter or slow an invader. Proponents see them as a necessary evil to protect national sovereignty against the threat from a much larger conventional force deployed by an aggressive neighbour.

    But this short-term thinking can be dangerous, because it doesn’t consider the long-term cost of putting explosive devices into the ground. According to the Landmine Monitor for 2024, more than 110,000 people were killed by landmines and explosive remnants of war in the past 25 years, and over 5,700 died just last year. Eight out of ten of those killed were civilians, many of whom were children.


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    Although it is cheap to lay landmines, demining is expensive and creates a financial burden for future generations. The UN estimates that it can cost between five and 100 times more to clear a mine than to lay one, depending on the circumstances.

    In Angola, for example, demining efforts continue nearly 50 years after the civil war broke out and 23 years after it ended. Encouragingly, Angola has reduced the threat with help of Halo Trust, a UK-based nongovernmental organisation. In 30 years they destroyed over 123,000 landmines. But to get Angola landmine free will require about US$240 million (£177 million) in additional funding.

    While Angola aims to be landmine-free within a few years, the current scale of contamination in Ukraine will pose a deadly hazard to civilians for generations, as Sarah Njeri – a landmines expert at SOAS, University of London, wrote in 2023.

    Looking through the prism of peace

    What Europe needs today is better analysis and more public awareness of the current crisis and its long-term effects. This is a tricky task, especially for the media, because the violence is “asynchronous”. This means that mines can be laid years before anyone is harmed by them. It’s important to have open and honest conversations in public so that both politicians and the public have something clear and trustworthy to rely on when making these fateful decisions.

    This means accepting that the concerns of the Baltic nations, Poland and Finland are valid. Their actions are a response the threat posed by Russia and the uncertainty surrounding America’s future role on the world stage. But there’s also an opportunity. Nobody in these countries takes the decision to use landmines lightly. This means, that if their European allies can provide credible security guarantees, these countries might change their plans.

    Nevertheless, the Peace Report 2025, compiled by four leading German peace research institutes, highlights that this way of thinking remains rooted in a military mindset. The planned increase in military budgets among Nato countries should be complemented by greater investment in diplomacy, peace research and peace building.

    The Peace Report lists nine recommendations for a more peaceful world, which are not pacifist. They recognise the need to close the gaps in European defence capabilities – but this is not enough. To create a peaceful Europe the legitimate security interests of all sides need to be considered. This includes Russia. At the same time, the report emphasises the need to strengthen, not weaken, the rules-based order. Abandoning the Ottawa treaty will further weaken that order.

    Withdrawing from the landmine treaty is not just a military calculation, and it affects more than just eastern European countries. It’s an issue that presents a real challenge to Europe as a whole. Laying mines would litter future farmland and forests with an indiscriminate threat that recognises no ceasefire and cannot distinguish friend from enemy, combatant from civilian or adult from child.

    If we don’t learn from the past, future reports will still be counting thousands of child casualties, but from the landmines laid in the 2020s.


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

    ref. Ukraine joins other Russian neighbours in quitting landmines treaty: another deadly legacy in the making – https://theconversation.com/ukraine-joins-other-russian-neighbours-in-quitting-landmines-treaty-another-deadly-legacy-in-the-making-261684

    MIL OSI Analysis

  • MIL-OSI: ING completes acquisition of Van Lanschot Kempen stake 

    Source: GlobeNewswire (MIL-OSI)

    ING completes acquisition of Van Lanschot Kempen stake 

    ING announced today that it has completed the acquisition of a 17.6% stake in Van Lanschot Kempen N.V., bringing the total interest in the company to 20.3%. The agreement to acquire the stake from Reggeborgh Groep B.V. was announced on 3 March 2025. 

    Under the terms of the agreement, ING directly acquired a stake of 7.2% in March 2025, bringing its stake in Van Lanschot Kempen to 9.9%. After receiving regulatory approval, the remaining 10.4% was transferred, bringing ING’s stake to 20.3%. The transaction has a minimal impact on ING’s CET1 ratio.  

    Note for editors
    For further information on ING, please visit www.ing.com. Frequent news updates can be found in the Newsroom. Photos of ING operations, buildings and its executives are available for download at Flickr.

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    ING Group shares are listed on the exchanges of Amsterdam (INGA NA, INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N).

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  • MIL-OSI United Kingdom: PM call with President Zelenskyy of Ukraine: 24 July 2025

    Source: United Kingdom – Executive Government & Departments

    Press release

    PM call with President Zelenskyy of Ukraine: 24 July 2025

    Prime Minister Keir Starmer spoke to the President of Ukraine Volodymyr Zelenskyy today. 

    The Prime Minister spoke to the President of Ukraine Volodymyr Zelenskyy today. 

    The President began by thanking the Prime Minister for the UK’s continued support for Ukraine, including the sanctions announced earlier this week targeting Russia’s energy revenues, which play a vital part in stopping Putin’s war machine. They agreed international partners must continue to ramp up the pressure on Russia.

    The Prime Minister underlined the UK’s unwavering support for Ukraine, and the leaders agreed on the importance of the role of independent anti-corruption institutions at the heart of Ukraine’s democracy. 

    Both leaders underscored that Putin must come to the negotiation table and agree an unconditional ceasefire to see a just and lasting peace in Ukraine.

    They agreed to keep in touch.

    Updates to this page

    Published 24 July 2025

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: Joint Statement on the Invocation of the OSCE Moscow Mechanism

    Source: United Kingdom – Executive Government & Departments

    Speech

    Joint Statement on the Invocation of the OSCE Moscow Mechanism

    UK and 40 other countries invoke the Moscow Mechanism to address ill treatment of prisoners of war by the Russian Federation

    Thank you, Chair.   I will deliver an abridged version of this statement this afternoon. The full statement will be circulated in writing and I request that it be attached to the Journal of the Day.  

    I am delivering this statement on behalf of the following participating States: Albania, Andorra, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France,  Georgia, Germany, Greece, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta,  Moldova, Monaco, Montenegro, Netherlands, North Macedonia, Norway, Poland, Portugal, Romania,  San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland and the United Kingdom.   

    Today, our delegations will send the following letter to ODIHR Director Maria Telalian, invoking the Moscow Mechanism, with the support of Ukraine, as we continue to have concerns regarding violations of international humanitarian law and international human rights law following Russia’s full-scale war of aggression against Ukraine, including with regard to ill treatment of Ukrainian Prisoners of War (POW).   

    Director Telalian, 

    With Russia’s war of aggression against Ukraine in its fourth year and as Russia’s illegal occupation of the Autonomous Republic of Crimea and the city of Sevastopol and certain areas of the Donetsk and Luhansk regions of Ukraine has entered its eleventh year, we continue to witness large scale human suffering and alarming reports of violations of international humanitarian law (IHL) and of international human rights law (IHRL), many of which may amount to the most serious international crimes.  

    Against the backdrop of the full-scale war of aggression against Ukraine, launched by the Russian Federation on February 24, 2022, a number of credible sources, including the Moscow Mechanism expert missions, the Office for Democratic Institutions and Human Rights, the Office of the High Commissioner for Human Rights and the UN Independent International Commission of Inquiry, as well as civil society organizations, have reported that the Russian Federation has consistently violated the rights of prisoners of war (POWs) throughout their detention and at multiple detention facilities within the temporarily occupied territories of Ukraine and the Russian Federation. There have been credible reports that the extensive and routine torture and ill-treatment of Ukrainian POWs throughout their detention constitutes a continued systematic pattern of state policy and practice by the Russian Federation. Torture follows common patterns across different locations, indicating it is a coordinated, deliberate, and systematic practice.  

    In 2022, 2023 and 2024, 45 OSCE Delegations, following bilateral consultations with Ukraine under the Vienna (Human Dimension) Mechanism, invoked Paragraph 8 of the Moscow (Human Dimension) Mechanism. The reports of the independent missions of experts, received by OSCE participating States, confirmed our shared concerns about the impact of the Russian Federation’s invasion and acts of war, its violations and abuses of IHRL, and violations of IHL in Ukraine.  

    We remain particularly alarmed by the findings of the expert missions that some of the violations may amount to war crimes and crimes against humanity as well as the identification of patterns of reported violations of IHL and IHRL regarding the treatment of prisoners of war.  

    The prohibition against torture in international law is absolute.  Parties to an armed conflict are obliged to ensure the rights of POWs as set out in the Third Geneva Convention of 1949 relative to the Treatment of Prisoners of War and Additional Protocol I to the Geneva Conventions. Prisoners of war must at all times be protected, particularly against acts of violence or intimidation and against insults and public curiosity. No physical or mental torture, nor any other form of coercion, may be inflicted on prisoners of war to secure from them information of any kind whatever. Prisoners of war who refuse to answer may not be threatened, insulted or exposed to unpleasant or disadvantageous treatment of any kin Torture and inhuman treatment of POWs are grave breaches of the Geneva Conventions, and likewise war crimes under the Rome Statute of the International Criminal Court. 

    ODIHR’s Ukraine Monitoring Initiative has continued to identify patterns of reported IHL and IHRL violations related to the treatment of Ukrainian POWs including in their Sixth Interim Report of 13 December 2024 and their Seventh Interim Report of 15 July 2025. Interviews with survivors and witnesses attested to a continued practice of systematic torture and other IHL and IHRL violations perpetrated against Ukrainian POWs  prompting serious concerns about the Russian Federation’s failure to comply with the fundamental principles that govern the treatment of POWs.  

    In equal measure, the OHCHR and the UN Human Rights Monitoring Mission in Ukraine (HRMMU) have reported on the systematic and widespread use of torture of Ukrainian POWs by Russian authorities. In its March 2023 report, the HRMMU documented violations of IHRL and IHL in 32 of 48 detention facilities in Russia and Russian-occupied territories of Ukraine, related to torture and other ill-treatment,  dire conditions of internment  including inadequate quarters, food, hygiene, and medical care, along with restricted communication, forced labor, and a lack of access of independent monitors. .  Many were held incommunicado deprived of the possibility to communicate with family or the outside world. Russian authorities subjected Ukrainian POWs to unlawful prosecutions for mere participation in hostilities; using torture to extract confessions; and denying fair trials.   

    According to witness testimonies, there were numerous incidents whereby POWs died in captivity due to execution, torture, ill-treatment and/or inadequate medical attention as well as inhumane conditions during their captivity.   

    The OHCHR’s October 2024 Report on the Treatment of Prisoners of War further documented detailed and consistent accounts of torture or ill treatment in Russian Federation custody.   

    Survivors have described the wide-ranging methods of torture or ill-treatment of Ukrainian POWs including: severe physical beatings; electrocution (including the targeting of genitalia); excessively intense physical exercise; stress positions; dog attacks; mock executions (including simulated hangings); threats of physical violence and death; sexual violence, including rape; threats of rape and castration; threats of coerced sexual acts; and other forms of humiliation.   

    Since the end of August 2024, OHCHR also has recorded a significant increase in credible allegations of executions of Ukrainian servicepersons captured by Russian armed forces, involving at least 97 individuals.   

    The UN Independent International Commission of Inquiry on Ukraine (UN COI) stated on 23 September 2024 that it has evidence of widespread and systematic torture by Russian authorities against Ukrainian civilians and POWs in the temporarily occupied territories and in Russia. They concluded that torture follows common patterns across different locations, indicating it is a coordinated practice.  In their March 2025 report, the UN COI again called on the Russian Federation to immediately end the widespread and systematic use of torture and other forms of ill-treatment committed against civilian detainees and prisoners of war  

    The Office of the Prosecutor General of Ukraine is investigating the reported execution of 273 Ukrainian POWs, including 208 who were reportedly executed on the battlefield and 59 in the ‘‘Olenivka’’ colony. However, the real number of those executed is likely much higher. 

    We are deeply concerned about the severity and frequency of these violations and abuses. We are particularly appalled by reported executions of Ukrainian POWs and Ukrainian soldiers rendered hors de combat upon their surrender and by the desecration/mutilation of bodies.  We are also deeply concerned with the practice of filming and distributing images of these abhorrent incidents.  

    Following grave concerns over the ill-treatment of Ukrainian POWs, highlighted, inter alia, by the UN Human Rights Monitoring Mission in Ukraine, the Independent International Commission of Inquiry on Ukraine and the Office of the High Commissioner for Human Rights and the OSCE, we call on all parties to the armed conflict ensure that POWs are treated in full compliance with IHL.  

    We recall that OSCE participating States have committed themselves to respect IHL, including the Third Geneva Convention relative to the Treatment of Prisoners of War of 1949, bearing in mind that the willful killing, torture, inhuman treatment, causing great suffering, or serious injury to body or health of persons protected under the Geneva Conventions, including prisoners of war, constitutes a war crime. No prisoner of war may be subjected to physical mutilation or to medical or scientific experiments of any kind which are not justified by the medical, dental or hospital treatment of the prisoner concerned and carried out in his interest. Likewise, prisoners of war must at all times be protected, particularly against acts of violence or intimidation and against insults and public curiosity. 

    We also recall that the prohibition of torture is a peremptory norm of international law without territorial limitation, which applies at all times and in all places.   Measures of reprisal against POWs are prohibited. 

    We call on the Russia Federation to end the torture and ill-treatment of all detainees and ensure adequate conditions of detention including the provision of basic needs such as food, water, clothing, and medical care. We further call for providing timely and accurate information on detainees’ whereabouts and legal status, and for granting international humanitarian organizations, like the International Committee of the Red Cross, unfettered access to such persons. 

    Gravely concerned by the continuing impacts of Russia’s ongoing aggression against Ukraine, and gravely concerned by credible allegations of the torture, ill-treatment and executions of Ukrainian POWs, and soldiers hors de combat, the delegations of Albania, Andorra, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Canada, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France,  Georgia, Germany, Greece, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta,  Moldova, Monaco, Montenegro, Netherlands, North Macedonia, Norway, Poland, Portugal, Romania,  San Marino, Slovakia, Slovenia, Spain, Sweden, Switzerland and the United Kingdom, following bilateral consultations with Ukraine under the Vienna Mechanism, invoke the Moscow (Human Dimension) Mechanism under Paragraph 8 of that document.  

    We request that ODIHR inquire of Ukraine whether it would invite a mission of experts to build upon previous findings, and:  

    To establish the facts and circumstances surrounding possible contraventions of relevant OSCE commitments; violations and abuses of human rights; and violations of IHL, including possible cases of war crimes and crimes against humanity, related to the treatment of Ukrainian POWs by the Russian Federation ; 

    To collect, consolidate, and analyse this information including to determine if there is a pattern of widespread and systematic torture, ill-treatment and execution of Ukrainian POWs and soldiers hors de combat and/or at detention facilities by the Russian Federation in the temporarily occupied territories and in Russia and 

    To offer recommendations on relevant accountability mechanisms. 

    We also invite ODIHR to provide any relevant information or documentation derived from any new expert mission to other appropriate accountability mechanisms, including the UN Human Rights Monitoring Mission in Ukraine or the Independent International Commission of Inquiry on Ukraine, as well as national, regional, or international courts or tribunals that have, or may in future have, jurisdiction.  

    Thank you for your attention.

    Updates to this page

    Published 24 July 2025

    MIL OSI United Kingdom

  • MIL-Evening Report: Keep fighting for a nuclear-free Pacific, Helen Clark warns Greenpeace over global storm clouds

    Asia Pacific Report

    Former New Zealand prime minister Helen Clark warned activists and campaigners in a speech on the deck of the Greenpeace environmental flagship Rainbow Warrior III last night to be wary of global “storm clouds” and the renewed existential threat of nuclear weapons.

    Speaking on her reflections on four decades after the bombing of the original Rainbow Warrior on 10 July 1985, she said that New Zealand had a lot to be proud of but the world was now in a “precarious” state.

    Clark praised Greenpeace over its long struggle, challenging the global campaigners to keep up the fight for a nuclear-free Pacific.

    “For New Zealand, having been proudly nuclear-free since the mid-1980s, life has got a lot more complicated for us as well, and I have done a lot of campaigning against New Zealand signing up to any aspect of the AUKUS arrangement because it seems to me that being associated with any agreement that supplies nuclear ship technology to Australia is more or less encouraging the development of nuclear threats in the South Pacific,” she said.

    “While I am not suggesting that Australians are about to put nuclear weapons on them, we know that others do. This is not the Pacific that we want.

    “It is not the Pacific that we fought for going back all those years.

    “So we need to be very concerned about these storm clouds gathering.”

    Lessons for humanity
    Clark was prime minister 1999-2008 and served as a minister in David Lange’s Labour government that passed New Zealand’s nuclear-free legislation in 1987 – two years after the Rainbow Warrior bombing by French secret agents.

    She was also head of the United Nations Development Programme (UNDP) in 2009-2017.

    “When you think 40 years on, humanity might have learned some lessons. But it seems we have to repeat the lessons over and over again, or we will be dragged on the path of re-engagement with those who use nuclear weapons as their ultimate defence,” Clark told the Greenpeace activists, crew and guests.

    “Forty years on, we look back with a lot of pride, actually, at how New Zealand responded to the bombing of the Rainbow Warrior. We stood up with the passage of the nuclear-free legislation in 1987, we stood up with a lot of things.

    “All of this is under threat; the international scene now is quite precarious with respect to nuclear weapons. This is an existential threat.”


    Nuclear-free Pacific reflections with Helen Clark         Video: Greenpeace

    In response to Tahitian researcher and advocate Ena Manuireva who spoke earlier about the legacy of a health crisis as a result of 30 years of French nuclear tests at Moruroa and Fangataufa, she recalled her own thoughts.

    “It reminds us of why we were so motivated to fight for a nuclear-free Pacific because we remember the history of what happened in French Polynesia, in the Marshall Islands, in the South Australian desert, at Maralinga, to the New Zealand servicemen who were sent up in the navy ships, the Rotoiti and the Pukaki, in the late 1950s, to stand on deck while the British exploded their bombs [at Christmas Island in what is today Kiribati].

    “These poor guys were still seeking compensation when I was PM with the illnesses you [Ena] described in French Polynesia.

    Former NZ prime minister Helen Clark . . . “I remember one of the slogans in the 1970s and 1980s was ‘if it is so safe, test them in France’.” Image: Asia Pacific Report

    Testing ground for ‘others’
    “So the Pacific was a testing ground for ‘others’ far away and I remember one of the slogans in the 1970s and 1980s was ‘if it is so safe, test them in France’. Right? It wasn’t so safe.

    “Mind you, they regarded French Polynesia as France.

    “David Robie asked me to write the foreword to the new edition of his book, Eyes of Fire: The Last Voyage and Legacy of the Rainbow Warrior, and it brought back so many memories of those times because those of you who are my age will remember that the 1980s were the peak of the Cold War.

    “We had the Reagan administration [in the US] that was actively preparing for war. It was a terrifying time. It was before the demise of the Soviet Union. And nuclear testing was just part of that big picture where people were preparing for war.

    “I think that the wonderful development in New Zealand was that people knew enough to know that we didn’t want to be defended by nuclear weapons because that was not mutually assured survival — it was mutually assured destruction.”

    New Zealand took a stand, Clark said, but taking that stand led to the attack on the Rainbow Warrior in Auckland harbour by French state-backed terrorism where tragically Greenpeace photographer Fernando Pereira lost his life.

    “I remember I was on my way to Nairobi for a conference for women, and I was in Zimbabwe, when the news came through about the bombing of a boat in Auckland harbour.

    ‘Absolutely shocking’
    “It was absolutely shocking, we had never experienced such a thing. I recall when I returned to New Zealand, [Prime Minister] David Lange one morning striding down to the party caucus room and telling us before it went public that it was without question that French spies had planted the bombs and the rest was history.

    “It was a very tense time. Full marks to Greenpeace for keeping up the struggle for so long — long before it was a mainstream issue Greenpeace was out there in the Pacific taking on nuclear testing.

    “Different times from today, but when I wrote the foreword for David’s book I noted that storm clouds were gathering again around nuclear weapons and issues. I suppose that there is so much else going on in a tragic 24 news cycle — catastrophe day in and day out in Gaza, severe technology and lethal weapons in Ukraine killing people, wherever you look there are so many conflicts.

    “The international agreements that we have relied are falling into disrepair. For example, if I were in Europe I would be extremely worried about the demise of the intermediate range missile weapons pact which has now been abandoned by the Americans and the Russians.

    “And that governs the deployment of medium range missiles in Europe.

    “The New Start Treaty, which was a nuclear arms control treaty between what was the Soviet Union and the US expires next year. Will it be renegotiated in the current circumstances? Who knows?”

    With the Non-proliferation Treaty, there are acknowledged nuclear powers who had not signed the treaty — “and those that do make very little effort to live up to the aspiration, which is to negotiate an end to nuclear weapons”.

    Developments with Iran
    “We have seen recently the latest developments with Iran, and for all of Iran’s many sins let us acknowledge that it is a party to the Non-Proliferation Treaty,” she said.

    “It did subject itself, for the most part, to the inspections regime. Israel, which bombed it, is not a party to the treaty, and doesn’t accept inspections.

    “There are so many double standards that people have long complained about the Non-Proliferation Treaty where the original five nuclear powers are deemed okay to have them, somehow, whereas there are others who don’t join at all.

    “And then over the Ukraine conflict we have seen worrying threats of the use of nuclear weapons.”

    Clark warned that we the use of artificial intelligence it would not be long before asking it: “How do I make a nuclear weapon?”

    “It’s not so difficult to make a dirty bomb. So we should be extremely worried about all these developments.”

    Then Clark spoke about the “complications” facing New Zealand.

    Mangareva researcher and advocate Ena Manuireva . . . “My mum died of lung cancer and the doctors said that she was a ‘passive smoker’. My mum had not smoked for the last 65 years.” Image: Asia Pacific Report

    Teariki’s message to De Gaulle
    In his address, Ena Manuireva started off by quoting the late Tahitian parliamentarian John Teariki who had courageously appealed to General Charles De Gaulle in 1966 after France had already tested three nuclear devices:

    “No government has ever had the honesty or the cynical frankness to admit that its nuclear tests might be dangerous. No government has ever hesitated to make other peoples — preferably small, defenceless ones — bear the burden.”

    “May you, Mr President, take back your troops, your bombs, and your planes.

    “Then, later, our leukemia and cancer patients would not be able to accuse you of being the cause of their illness.

    “Then, our future generations would not be able to blame you for the birth of monsters and deformed children.

    “Then, you would give the world an example worthy of France . . .

    “Then, Polynesia, united, would be proud and happy to be French, and, as in the early days of Free France, we would all once again become your best and most loyal friends.”

    ‘Emotional moment’
    Manuireva said that 10 days earlier, he had been on board Rainbow Warrior III for the ceremony to mark the bombing in 1985 that cost the life of Fernando Pereira – “and the lives of a lot of Mā’ohi people”.

    “It was a very emotional moment for me. It reminded me of my mother and father as I am a descendant of those on Mangareva atoll who were contaminated by those nuclear tests.

    “My mum died of lung cancer and the doctors said that she was a ‘passive smoker’. My mum had not smoked for the last 65 years.

    “French nuclear testing started on 2 July 1966 with Aldebaran and lasted 30 years.”

    He spoke about how the military “top brass fled the island” when winds start blowing towards Mangareva. “Food was ready but they didn’t stay”.

    “By the time I was born in December 1967 in Mangareva, France had already exploded 9 atmospheric nuclear tests on Moruroa and Fangataufa atolls, about 400km from Mangareva.”

    France’s most powerful explosion was Canopus with 2.6 megatonnes in August 1968. It was a thermonuclear hydrogen bomb — 150 times more powerful than Hiroshima.

    Greenpeace Aotearoa executive director Russel Norman . . . a positive of the campaign future. Image: Asia Pacific Report

    ‘Poisoned gift’
    Manuireva said that by France “gifting us the bomb”, Tahitians had been left “with all the ongoing consequences on the people’s health costs that the Ma’ohi Nui government is paying for”.

    He described how the compensation programme was inadequate, lengthy and complicated.

    Manuireva also spoke about the consequences for the environment. Both Moruroa and Fangataufa were condemned as “no go” zones and islanders had lost their lands forever.

    He also noted that while France had gifted the former headquarters of the Atomic Energy Commission (CEP) as a “form of reconciliation” plans to turn it into a museum were thwarted because the building was “rife with asbestos”.

    “It is a poisonous gift that will cost millions for the local government to fix.”

    Greenpeace Aotearoa executive director Russel Norman spoke of the impact on the Greenpeace organisation of the French secret service bombing of their ship and also introduced the guest speakers and responded to their statements.

    A Q and A session was also held to round off the stimulating evening.

    A question during the open mike session on board the Rainbow Warrior. Image: Asia Pacific Report

    MIL OSI AnalysisEveningReport.nz

  • MIL-Evening Report: Keep fighting for a nuclear-free Pacific, Helen Clark warns Greenpeace over global storm clouds

    Asia Pacific Report

    Former New Zealand prime minister Helen Clark warned activists and campaigners in a speech on the deck of the Greenpeace environmental flagship Rainbow Warrior III last night to be wary of global “storm clouds” and the renewed existential threat of nuclear weapons.

    Speaking on her reflections on four decades after the bombing of the original Rainbow Warrior on 10 July 1985, she said that New Zealand had a lot to be proud of but the world was now in a “precarious” state.

    Clark praised Greenpeace over its long struggle, challenging the global campaigners to keep up the fight for a nuclear-free Pacific.

    “For New Zealand, having been proudly nuclear-free since the mid-1980s, life has got a lot more complicated for us as well, and I have done a lot of campaigning against New Zealand signing up to any aspect of the AUKUS arrangement because it seems to me that being associated with any agreement that supplies nuclear ship technology to Australia is more or less encouraging the development of nuclear threats in the South Pacific,” she said.

    “While I am not suggesting that Australians are about to put nuclear weapons on them, we know that others do. This is not the Pacific that we want.

    “It is not the Pacific that we fought for going back all those years.

    “So we need to be very concerned about these storm clouds gathering.”

    Lessons for humanity
    Clark was prime minister 1999-2008 and served as a minister in David Lange’s Labour government that passed New Zealand’s nuclear-free legislation in 1987 – two years after the Rainbow Warrior bombing by French secret agents.

    She was also head of the United Nations Development Programme (UNDP) in 2009-2017.

    “When you think 40 years on, humanity might have learned some lessons. But it seems we have to repeat the lessons over and over again, or we will be dragged on the path of re-engagement with those who use nuclear weapons as their ultimate defence,” Clark told the Greenpeace activists, crew and guests.

    “Forty years on, we look back with a lot of pride, actually, at how New Zealand responded to the bombing of the Rainbow Warrior. We stood up with the passage of the nuclear-free legislation in 1987, we stood up with a lot of things.

    “All of this is under threat; the international scene now is quite precarious with respect to nuclear weapons. This is an existential threat.”


    Nuclear-free Pacific reflections with Helen Clark         Video: Greenpeace

    In response to Tahitian researcher and advocate Ena Manuireva who spoke earlier about the legacy of a health crisis as a result of 30 years of French nuclear tests at Moruroa and Fangataufa, she recalled her own thoughts.

    “It reminds us of why we were so motivated to fight for a nuclear-free Pacific because we remember the history of what happened in French Polynesia, in the Marshall Islands, in the South Australian desert, at Maralinga, to the New Zealand servicemen who were sent up in the navy ships, the Rotoiti and the Pukaki, in the late 1950s, to stand on deck while the British exploded their bombs [at Christmas Island in what is today Kiribati].

    “These poor guys were still seeking compensation when I was PM with the illnesses you [Ena] described in French Polynesia.

    Former NZ prime minister Helen Clark . . . “I remember one of the slogans in the 1970s and 1980s was ‘if it is so safe, test them in France’.” Image: Asia Pacific Report

    Testing ground for ‘others’
    “So the Pacific was a testing ground for ‘others’ far away and I remember one of the slogans in the 1970s and 1980s was ‘if it is so safe, test them in France’. Right? It wasn’t so safe.

    “Mind you, they regarded French Polynesia as France.

    “David Robie asked me to write the foreword to the new edition of his book, Eyes of Fire: The Last Voyage and Legacy of the Rainbow Warrior, and it brought back so many memories of those times because those of you who are my age will remember that the 1980s were the peak of the Cold War.

    “We had the Reagan administration [in the US] that was actively preparing for war. It was a terrifying time. It was before the demise of the Soviet Union. And nuclear testing was just part of that big picture where people were preparing for war.

    “I think that the wonderful development in New Zealand was that people knew enough to know that we didn’t want to be defended by nuclear weapons because that was not mutually assured survival — it was mutually assured destruction.”

    New Zealand took a stand, Clark said, but taking that stand led to the attack on the Rainbow Warrior in Auckland harbour by French state-backed terrorism where tragically Greenpeace photographer Fernando Pereira lost his life.

    “I remember I was on my way to Nairobi for a conference for women, and I was in Zimbabwe, when the news came through about the bombing of a boat in Auckland harbour.

    ‘Absolutely shocking’
    “It was absolutely shocking, we had never experienced such a thing. I recall when I returned to New Zealand, [Prime Minister] David Lange one morning striding down to the party caucus room and telling us before it went public that it was without question that French spies had planted the bombs and the rest was history.

    “It was a very tense time. Full marks to Greenpeace for keeping up the struggle for so long — long before it was a mainstream issue Greenpeace was out there in the Pacific taking on nuclear testing.

    “Different times from today, but when I wrote the foreword for David’s book I noted that storm clouds were gathering again around nuclear weapons and issues. I suppose that there is so much else going on in a tragic 24 news cycle — catastrophe day in and day out in Gaza, severe technology and lethal weapons in Ukraine killing people, wherever you look there are so many conflicts.

    “The international agreements that we have relied are falling into disrepair. For example, if I were in Europe I would be extremely worried about the demise of the intermediate range missile weapons pact which has now been abandoned by the Americans and the Russians.

    “And that governs the deployment of medium range missiles in Europe.

    “The New Start Treaty, which was a nuclear arms control treaty between what was the Soviet Union and the US expires next year. Will it be renegotiated in the current circumstances? Who knows?”

    With the Non-proliferation Treaty, there are acknowledged nuclear powers who had not signed the treaty — “and those that do make very little effort to live up to the aspiration, which is to negotiate an end to nuclear weapons”.

    Developments with Iran
    “We have seen recently the latest developments with Iran, and for all of Iran’s many sins let us acknowledge that it is a party to the Non-Proliferation Treaty,” she said.

    “It did subject itself, for the most part, to the inspections regime. Israel, which bombed it, is not a party to the treaty, and doesn’t accept inspections.

    “There are so many double standards that people have long complained about the Non-Proliferation Treaty where the original five nuclear powers are deemed okay to have them, somehow, whereas there are others who don’t join at all.

    “And then over the Ukraine conflict we have seen worrying threats of the use of nuclear weapons.”

    Clark warned that we the use of artificial intelligence it would not be long before asking it: “How do I make a nuclear weapon?”

    “It’s not so difficult to make a dirty bomb. So we should be extremely worried about all these developments.”

    Then Clark spoke about the “complications” facing New Zealand.

    Mangareva researcher and advocate Ena Manuireva . . . “My mum died of lung cancer and the doctors said that she was a ‘passive smoker’. My mum had not smoked for the last 65 years.” Image: Asia Pacific Report

    Teariki’s message to De Gaulle
    In his address, Ena Manuireva started off by quoting the late Tahitian parliamentarian John Teariki who had courageously appealed to General Charles De Gaulle in 1966 after France had already tested three nuclear devices:

    “No government has ever had the honesty or the cynical frankness to admit that its nuclear tests might be dangerous. No government has ever hesitated to make other peoples — preferably small, defenceless ones — bear the burden.”

    “May you, Mr President, take back your troops, your bombs, and your planes.

    “Then, later, our leukemia and cancer patients would not be able to accuse you of being the cause of their illness.

    “Then, our future generations would not be able to blame you for the birth of monsters and deformed children.

    “Then, you would give the world an example worthy of France . . .

    “Then, Polynesia, united, would be proud and happy to be French, and, as in the early days of Free France, we would all once again become your best and most loyal friends.”

    ‘Emotional moment’
    Manuireva said that 10 days earlier, he had been on board Rainbow Warrior III for the ceremony to mark the bombing in 1985 that cost the life of Fernando Pereira – “and the lives of a lot of Mā’ohi people”.

    “It was a very emotional moment for me. It reminded me of my mother and father as I am a descendant of those on Mangareva atoll who were contaminated by those nuclear tests.

    “My mum died of lung cancer and the doctors said that she was a ‘passive smoker’. My mum had not smoked for the last 65 years.

    “French nuclear testing started on 2 July 1966 with Aldebaran and lasted 30 years.”

    He spoke about how the military “top brass fled the island” when winds start blowing towards Mangareva. “Food was ready but they didn’t stay”.

    “By the time I was born in December 1967 in Mangareva, France had already exploded 9 atmospheric nuclear tests on Moruroa and Fangataufa atolls, about 400km from Mangareva.”

    France’s most powerful explosion was Canopus with 2.6 megatonnes in August 1968. It was a thermonuclear hydrogen bomb — 150 times more powerful than Hiroshima.

    Greenpeace Aotearoa executive director Russel Norman . . . a positive of the campaign future. Image: Asia Pacific Report

    ‘Poisoned gift’
    Manuireva said that by France “gifting us the bomb”, Tahitians had been left “with all the ongoing consequences on the people’s health costs that the Ma’ohi Nui government is paying for”.

    He described how the compensation programme was inadequate, lengthy and complicated.

    Manuireva also spoke about the consequences for the environment. Both Moruroa and Fangataufa were condemned as “no go” zones and islanders had lost their lands forever.

    He also noted that while France had gifted the former headquarters of the Atomic Energy Commission (CEP) as a “form of reconciliation” plans to turn it into a museum were thwarted because the building was “rife with asbestos”.

    “It is a poisonous gift that will cost millions for the local government to fix.”

    Greenpeace Aotearoa executive director Russel Norman spoke of the impact on the Greenpeace organisation of the French secret service bombing of their ship and also introduced the guest speakers and responded to their statements.

    A Q and A session was also held to round off the stimulating evening.

    A question during the open mike session on board the Rainbow Warrior. Image: Asia Pacific Report

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI USA: Ranking Member Frankel Opening Remarks at Full Committee Markup of the National Security, Department of State, and Related Programs Funding Bill

    Source: United States House of Representatives – Congresswoman Lois Frankel (FL-21)

    Thank you, Mr. Chairman. I’m going to start by recognizing the collegiality of our Chairman Mr. Diaz-Balart and the thoughtful members on both sides of the aisle. And of course, I want to thank our hardworking staff for their tireless efforts. But most of all, I want to recognize the brave and committed Americans—our diplomats, USAID workers, humanitarian teams, and public health experts and our partners around the world—who bring our country’s values to the world’s toughest places. They’re the ones who delivered vaccines to remote villages in Congo, who help girls in Ethiopia escape forced marriage and find education and safety. 

    I’ve seen their work up close–I know many of us have—and the impact of the programs we funded. Children who escaped the brutality of Assad’s Syria thriving in classrooms in Jordan. Mothers in Malawi learning skills to support their families. Pregnant women in Kenya staying healthy with support from HIV clinics. To all of these workers —past and present: You are the patriots. You represent the best of America. And those who are still serving deserve more than our thanks. They deserve the tools to get the job done.

    Mr. Chairman, I wish we had a bipartisan bill in front of us that I could support that honored that service and reflected America’s leadership. If we had a responsible allocation and a White House that understood diplomacy, development, and humanitarian aid, we could have gotten there. But instead, here we are, questioning whether any of this matters when the President just ignores the will of Congress and the laws we pass.

    So today, I strongly oppose the FY 2026 Republican bill. It’s not just a funding cut—it’s a reckless blueprint for American retreat. Our President seems to think relying on threats and bullying alone is a smart strategy. But chaotic tariffs, cruel immigration crackdowns, and this tepid foreign aid plan before us today is not going to make us more safe, secure, or more prosperous. And attention: we are ceding the world to China. And let me be clear: This bill does not lower costs for hard working families and retirees on day one as promised by President Trump—instead it puts hard earned finances at risk by hurting global stability.

    And tax breaks for billionaires is not a trade-off for millions of starving children and let me just say that this bill does not make one bit of difference in making up the $4 trillion addition to our debt when the Republicans pass what they call their Big Bill their Big Beautiful Bill I call it the Big Ugly Bill   And this bill is just adds to the list of  troubling actions by the Administration.

    Here’s what’s happened leading up: Foreign aid has been held up illegally, then justified by an inane clawback known as recission; USAID—an agency backed by Congress that fights poverty and prevents conflict—gutted; Over 10,000 development and humanitarian professionals dismissed by Elon Musk; 5,000 life-saving aid programs abruptly terminated; 1,300 State Department staff laid off; Offices shuttered. Decades of progress wiped out. How disgusting , the richest man in the world was allowed to pull the plug on programs that save the world’s poorest children.

    The infrastructure and staffing is no longer present to carry out the few programs that remain. Let me say this again with emphasis: The infrastructure and staffing is no longer present to carry out the few programs that remain.

    All while the world faces crisis after crisis: Wars and armed conflict, Extreme weather, Hunger and famine, Disease outbreaks, Mass migration, and Rising authoritarian regimes

    These aren’t distant problems. They land right at our door: Fragile states collapse and migration surges; Trade stops and U.S. farmers and businesses lose buyers ;Climate disasters destroy crops and homes; Broken health systems allow deadly viruses to spread; And when we step back, China and Russia step in—not to help, but to expand their grip.

    We’re leaving behind a gap they fill with money, weapons, and propaganda taking over the airwaves – reaching listeners who used to rely on Voice of America and our international broadcasting. They want to remake the world to fit their playbook.

    Meanwhile, sadly our allies are also slashing foreign aid —pushed to spend more on weapons by Mr. Trump. As global needs explode, democracy’s soft power is vanishing. This bill fails to meet this moment.

    Here’s what it really does:

    Cuts 22% from the international affairs budget – that’s $13 billion, diminishing funding for development and economic assistance:

    • Kids kicked out of the classroom and cut off from clean water
    • Farmers losing seeds and tools to make a living
    • Violence prevention programs vanishing
    • Local nonprofits shut down

    The bill slashes humanitarian aid by 42%:

    • In Nigeria, malnourished infants are dying without food
    • In Myanmar, hospitals are going dark
    • In The Gambia, support for survivors of female genital mutilation has ended—as the country debates making it legal again
    • In Ukraine, wounded soldiers go without care
    • In Ecuador, women entrepreneurs are losing lifelines and heading for our border

    This is a blow to our credibility, our moral standing, and our global influence. Soft power – interestingly enough – development and diplomacy – have been secret weapons abroad. Without them, we’re losing Americans on the ground who know the terrain, see trouble coming, and keep us one step ahead.

    And as always, my, my, my. Here we go again–Republicans couldn’t resist one more swipe at women: Slashing family planning programs that save hundreds of thousands of lives each year and prevent millions of unplanned pregnancies, Reinstating the Global Gag Rule—which blocks funding to foreign groups that even talk about abortion; you can’t even say the word “abortion”, not do abortion, say the word “abortion”– you lose your funding, Gutting the UNFPA—which provides basic reproductive and maternal care in over 150 countries

    And while this bill guts humanitarian programs and walks away from the world’s most vulnerable, the administration is also on the road to destroying one of the smartest, most effective tools of U.S. foreign policy: the Women, Peace, and Security agenda. WPS is not some fringe idea. It’s the law, signed by guess who, Donald Trump. It passed with strong bipartisan support. And here’s why: Women experience conflict differently than men—often bearing the brunt of sexual violence, displacement, and the burden of caring for families amid chaos—yet they are too often excluded from life changing decisions. The WPS agenda has helped train diplomats, strengthen alliances, and put more women at the center of peace and security.

    When women are at the table for peace talks, recovery, and crisis response, the results are better. Period. Peace lasts longer. Communities recover faster. And Missions succeed. And yet, this administration shut down the State Department’s office that leads that work—right when we need women’s leadership the most. That’s not just shortsighted. It makes the world less safe and works directly against our own interests.

    The bill also abandons multilateral institutions and organizations—UNICEF, the UN Development Program, the African and Asian Development Banks, the World Bank, the World Health Organization—undermining our ability to shape the global agenda and ceding ground to autocrats. Guess who? Attention: China is going to take over this world.

    So why should Americans care that these cuts are going to cost more than they save? Because these cuts hurt American families, too.  When we walk away from the world: Chaos spreads; Troops are put in harm’s way; Our adversaries gain ground; And we pay the price—in dollars, and in lives.

    And look, I say this not just as a lawmaker, but as a mother. My son served in the Marines. He was sent to two wars–Iraq and Afghanistan– I know what it means when diplomacy fails. The cost isn’t hypothetical—it hits our soldiers and their families the hardest.

    Let me remind you: the international affairs budget was already less than 1% of our federal spending. But it delivered huge returns: Markets for American goods; Stability abroad; Protection from pandemics; Fewer troops sent into harm’s way.

    Last week, we passed an $832 billion defense bill—that’s hard power. But even our top generals warn: without soft power alongside it, that number will only keep rising. So, Mr. Chairman, This bill is a lost opportunity. It’s a failure to lead. It hurts American families because when health systems collapse, people get sick.  When trade stalls, jobs vanish. When diplomacy fails, our loved ones go to war.  So let me close with this: Democrats aren’t giving up. We’re ready to work together with Republicans to reach a bill that reflects our values, keeps our promises, and protects American lives. Because we can’t bomb and drone our way to peace and prosperity.  A strong America doesn’t hide. And it doesn’t bully. A strong America leads—with vision, with courage, and compassion. And That’s the bill we should be fighting for. Thank you. I yield back.

    MIL OSI USA News

  • MIL-OSI: Lloyds Bank plc: 2025 Half-Year Results

    Source: GlobeNewswire (MIL-OSI)

    LONDON, July 24, 2025 (GLOBE NEWSWIRE) —

    Lloyds Bank plc

    2025 Half-Year Results

    24 July 2025

    Member of the Lloyds Banking Group

    CONTENTS

    Forward-looking statements 1
       
    Statutory information (IFRS)  
    Condensed consolidated balance sheet (unaudited) 2
    Condensed consolidated income statement (unaudited) 2
       
    Financial review 3
       
    Risk management  
    Principal risks and uncertainties 5
    Capital risk 6
    Credit risk 10
    Liquidity risk 20
       
    Statutory information  
    Condensed consolidated half-year financial statements (unaudited) 21
    Condensed consolidated income statement (unaudited) 22
    Condensed consolidated statement of comprehensive income (unaudited) 23
    Condensed consolidated balance sheet (unaudited) 24
    Condensed consolidated statement of changes in equity (unaudited) 25
    Condensed consolidated cash flow statement (unaudited) 28
    Notes to the condensed consolidated half-year financial statements (unaudited) 29
       
    Statement of directors’ responsibilities 52
    Independent review report to Lloyds Bank Plc 53
    Contacts 54


    FORWARD-LOOKING STATEMENTS

    This document contains certain forward-looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and section 27A of the US Securities Act of 1933, as amended, with respect to the business, strategy, plans and/or results of Lloyds Bank plc together with its subsidiaries (the Lloyds Bank Group) and its current goals and expectations. Statements that are not historical or current facts, including statements about the Lloyds Bank Group’s or its directors’ and/or management’s beliefs and expectations, are forward-looking statements. Words such as, without limitation, ‘believes’, ‘achieves’, ‘anticipates’, ‘estimates’, ‘expects’, ‘targets’, ‘should’, ‘intends’, ‘aims’, ‘projects’, ‘plans’, ‘potential’, ‘will’, ‘would’, ‘could’, ‘considered’, ‘likely’, ‘may’, ‘seek’, ‘estimate’, ‘probability’, ‘goal’, ‘objective’, ‘deliver’, ‘endeavour’, ‘prospects’, ‘optimistic’ and similar expressions or variations on these expressions are intended to identify forward-looking statements. These statements concern or may affect future matters, including but not limited to: projections or expectations of the Lloyds Bank Group’s future financial position, including profit attributable to shareholders, provisions, economic profit, dividends, capital structure, portfolios, net interest margin, capital ratios, liquidity, risk-weighted assets (RWAs), expenditures or any other financial items or ratios; litigation, regulatory and governmental investigations; the Lloyds Bank Group’s future financial performance; the level and extent of future impairments and write-downs; the Lloyds Bank Group’s ESG targets and/or commitments; statements of plans, objectives or goals of the Lloyds Bank Group or its management and other statements that are not historical fact and statements of assumptions underlying such statements. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend upon circumstances that will or may occur in the future. Factors that could cause actual business, strategy, targets, plans and/or results (including but not limited to the payment of dividends) to differ materially from forward-looking statements include, but are not limited to: general economic and business conditions in the UK and internationally (including in relation to tariffs); imposed and threatened tariffs and changes to global trade policies; acts of hostility or terrorism and responses to those acts, or other such events; geopolitical unpredictability; the war between Russia and Ukraine; the escalation of conflicts in the Middle East; the tensions between China and Taiwan; political instability including as a result of any UK general election; market related risks, trends and developments; changes in client and consumer behaviour and demand; exposure to counterparty risk; the ability to access sufficient sources of capital, liquidity and funding when required; changes to the Lloyds Bank Group’s or Lloyds Banking Group plc’s credit ratings; fluctuations in interest rates, inflation, exchange rates, stock markets and currencies; volatility in credit markets; volatility in the price of the Lloyds Bank Group’s securities; natural pandemic and other disasters; risks concerning borrower and counterparty credit quality; risks affecting defined benefit pension schemes; changes in laws, regulations, practices and accounting standards or taxation; changes to regulatory capital or liquidity requirements and similar contingencies; the policies and actions of governmental or regulatory authorities or courts together with any resulting impact on the future structure of the Lloyds Bank Group; risks associated with the Lloyds Bank Group’s compliance with a wide range of laws and regulations; assessment related to resolution planning requirements; risks related to regulatory actions which may be taken in the event of a bank or Lloyds Bank Group or Lloyds Banking Group failure; exposure to legal, regulatory or competition proceedings, investigations or complaints; failure to comply with anti-money laundering, counter terrorist financing, anti-bribery and sanctions regulations; failure to prevent or detect any illegal or improper activities; operational risks including risks as a result of the failure of third party suppliers; conduct risk; technological changes and risks to the security of IT and operational infrastructure, systems, data and information resulting from increased threat of cyber and other attacks; technological failure; inadequate or failed internal or external processes or systems; risks relating to ESG matters, such as climate change (and achieving climate change ambitions) and decarbonisation, including the Lloyds Bank Group’s or the Lloyds Banking Group’s ability along with the government and other stakeholders to measure, manage and mitigate the impacts of climate change effectively, and human rights issues; the impact of competitive conditions; failure to attract, retain and develop high calibre talent; the ability to achieve strategic objectives; the ability to derive cost savings and other benefits including, but without limitation, as a result of any acquisitions, disposals and other strategic transactions; inability to capture accurately the expected value from acquisitions; and assumptions and estimates that form the basis of the Lloyds Bank Group’s financial statements. A number of these influences and factors are beyond the Lloyds Bank Group’s control. Please refer to the latest Annual Report on Form 20-F filed by Lloyds Bank plc with the US Securities and Exchange Commission (the SEC), which is available on the SEC’s website at www.sec.gov, for a discussion of certain factors and risks. Lloyds Bank plc may also make or disclose written and/or oral forward-looking statements in other written materials and in oral statements made by the directors, officers or employees of Lloyds Bank plc to third parties, including financial analysts. Except as required by any applicable law or regulation, the forward-looking statements contained in this document are made as of today’s date, and the Lloyds Bank Group expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this document whether as a result of new information, future events or otherwise. The information, statements and opinions contained in this document do not constitute a public offer under any applicable law or an offer to sell any securities or financial instruments or any advice or recommendation with respect to such securities or financial instruments.


    CONTACTS

    For further information please contact:


    INVESTORS AND ANALYSTS

    Douglas Radcliffe

    Group Investor Relations Director

    020 7356 1571

    douglas.radcliffe@lloydsbanking.com

    Rohith Chandra-Rajan

    Director of Investor Relations

    07353 885 690

    rohith.chandra-rajan@lloydsbanking.com

    Nora Thoden

    Director of Investor Relations – ESG

    020 7356 2334

    nora.thoden@lloydsbanking.com

    Tom Grantham

    Investor Relations Senior Manager

    07851 440 091

    thomas.grantham@lloydsbanking.com

    Sarah Robson

    Investor Relations Senior Manager

    07494 513 983

    sarah.robson2@lloydsbanking.com


    CORPORATE AFFAIRS

    Matt Smith

    Head of Media Relations

    07788 352 487

    matt.smith@lloydsbanking.com

    Emma Fairhurst

    Media Relations Senior Manager

    07814 395 855

    emma.fairhurst@lloydsbanking.com

    Copies of this News Release may be obtained from:
    Investor Relations, Lloyds Banking Group plc, 33 Old Broad Street, London, EC2N 1HZ
    The statement can also be found on the Group’s website – www.lloydsbankinggroup.com

    Registered office: Lloyds Bank plc, 25 Gresham Street, London, EC2V 7HN
    Registered in England No. 2065

    Click on, or paste the following link into your web browser, to view the associated PDF document.

    http://www.rns-pdf.londonstockexchange.com/rns/4360S_1-2025-7-24.pdf

    This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

    The MIL Network

  • MIL-OSI: Drones Dominating the Skies with Increased Production Presenting a Rare Opportunity to Capitalize on Exponential Growth

    Source: GlobeNewswire (MIL-OSI)

    PALM BEACH, Fla., July 24, 2025 (GLOBE NEWSWIRE) — FN Media Group News Commentary – A recent release from the Department of Defense (DOD) said that: “The Pentagon to Increase Low-Cost Drone Production in U.S. It said that the Defense Department, with help from industry, will ramp up production and fielding of drones to maintain battlefield superiority. Recently at the Pentagon, 18 American-made drone prototypes were on display. Defense Secretary Pete Hegseth, who toured the displays, said the drones that are manufactured using off-the-shelf components for rapid production are examples of disruptive thinking. Emil Michael, undersecretary of defense for research and engineering, said the prototypes on display went from concept to development in just an average of 18 months, a process that normally takes up to six years. The department will continue to rapidly innovate and scale up production of drones and other systems using cost, resilience, firepower and range as driving factors, which are areas DOD wants to improve upon,” Michael said. Hegseth said in a July 10, 2025, memorandum that he’s rescinding restrictive policies that hindered drone production. “Drones are the biggest battlefield innovation in a generation, accounting for most of this year’s casualties in Ukraine. Our adversaries collectively produce millions of cheap drones each year,” he said, noting the U.S. military is lacking needed quantities of lethal small drones.  Active Companies in the drone industries include ZenaTech, Inc. (NASDAQ: ZENA), Mercury Systems, Inc. (NASDAQ: MRCY), Safe Pro Group Inc. (NASDAQ: SPAI), RTX Corporation (NYSE: RTX), AIRO Group Holdings, Inc. (NASDAQ: AIRO).

    The DOD release added: “The secretary said there are three goals: Prioritizing the purchase of American-made drones and parts with help from industry’s private capital; Arming combat units with low-cost drones made by America’s world-leading engineers and artificial intelligence experts; and Training with drones in realistic battlefield scenarios, led by leaders who are not risk averse.” The report concluded: “President Donald J. Trump signed a June 6, 2025, executive order to speed up U.S. drone production using the latest innovative industry technologies. The president said he supports reducing regulatory uncertainty and streamlining approval and certification processes for safe and secure drone production. Also, the Federal Aviation Administration and DOD will coordinate to streamline the approval processes to expand access to airspace for conducting drone training, Trump said.”

    ZenaTech (NASDAQ:ZENA) ZenaDrone Partners with Eagle Point Funding to Win US Defense Customers – ZenaTech, Inc. (FSE: 49Q) (BMV: ZENA) (“ZenaTech”), a business technology solution provider specializing in AI (Artificial Intelligence) drones, Drone as a Service (DaaS), Enterprise SaaS, and Quantum Computing solutions, today announces that its subsidiary ZenaDrone has signed a strategic partnership agreement with Eagle Point Funding, a specialized consultancy for technology and defense-focused companies, to help win US defense contracts. By leveraging Eagle Point’s deep expertise in R&D grant program opportunities, the company will gain structured support in identifying and preparing competitive proposals, and in establishing and expanding relationships within key US defense and government agencies.

    “Our collaboration with Eagle Point Funding will accelerate testing, pilot deployments, and enable long-term procurement discussions—helping ZenaDrone to advance as a key provider of American-made drone solutions,” said Shaun Passley, Ph.D., ZenaTech CEO. “Their expertise in navigating federal R&D funding programs such as SBIR and Department of Defense solicitations (DoD BAA), gives us a powerful advantage as we develop next-generation drone technologies aligned with US defense priorities. This partnership enhances our ability to accelerate product development, expand defense agency relationships, and unlock new growth without equity dilution.”

    Eagle Point Funding helps technology companies secure non-dilutive federal R&D grants and contracts from agencies such as the DoD, Air Force, Navy, and others. They specialize in programs such as the Small Business Innovation Research (SBIR), Air Force Works (AFWERX), and the Defense Advanced Research Projects Agency (DARPA), guiding clients through the application process to win contracts.

    ZenaDrone has previously completed paid trials with the US Air Force and Navy Reserve, demonstrating its ability to deliver solutions including delivery of critical supplies such as blood in the field. The companies’ suite of drones for military use includes the ZenaDrone 1000, the IQ Nano and the IQ Square drone that are designed for a variety of applications including inspections, surveillance, reconnaissance, and indoor inventory management for warehouses and armories. Continued… Read this full release by visiting: https://www.financialnewsmedia.com/news-zena/

    Other recent developments in the drone industries include:

    Mercury Systems, Inc. (NASDAQ: MRCY), a technology company that delivers mission-critical processing to the edge, recently announced it signed two agreements with a European defense prime contractor to expand and accelerate production of processing subsystems and components for radar and electronic warfare missions.

    In June, Mercury extended this decades-long customer relationship with a five-year agreement that will enable faster, higher-volume production of sensor processing subsystems powered by Mercury’s HDS6605 6U OpenVPX multiprocessing boards for airborne, land-based, and sea-based radar systems.

    Safe Pro Group Inc. (NASDAQ: SPAI), a leader in artificial intelligence (AI)-powered defense and security solutions, recently announced the successful integration of its patented AI object detection models with drone platforms selected for the U.S. Army’s Short Range Reconnaissance (SRR) Program of Record. Safe Pro is seeking to provide the U.S. Army’s future fleet of drones with enhanced explosive threat detection, force protection and essential intelligence, surveillance, and reconnaissance (ISR) capabilities utilizing the Company’s AI-powered computer vision technologies.

    This integration supports the U.S. Army’s evolving need for real-time threat detection and ISR capabilities across its next-generation drone fleet. Safe Pro’s proprietary computer vision technology enhances these drones with battlefield-proven AI models capable of rapidly identifying explosive threats and other hazards in complex environments.

    RTX Corporation (NYSE: RTX) recently reported second quarter 2025 results. “We continued our momentum in the second quarter with organic sales and profit growth* across all three segments, including 16 percent commercial aftermarket growth,” said RTX Chairman and CEO Chris Calio. “Our backlog grew to $236 billion, up 15 percent versus prior year, and we secured major awards for our geared turbofan engines and integrated air and missile defense capabilities in the quarter.”

    “Our updated outlook reflects strong operational performance in the first half and incorporates our current assessment of the impact of tariffs. We are focused on delivering on the strong growth in our commercial and defense end markets and remain well positioned to drive long term profitable growth.”

    AIRO Group Holdings, Inc (NASDAQ: AIRO), a global leader in advanced aerospace and defense technologies, recently announced at EAA AirVenture 2025 in Oshkosh, WI, the development of its new middle-mile, medium-lift cargo drone and the expansion of its operations into the YMX Innovation Zone in Mirabel, Quebec. The initiative is led by its Electric Air Mobility segment, Jaunt Air Mobility, and its Canadian subsidiary, Jaunt Air Mobility Canada.

    Jaunt’s presence in this hub for Advanced Air Mobility (AAM) innovation strengthens its collaboration with Vertiko Mobilité, a Canadian leader in AAM operations and ground infrastructure development, and benefits from the support of Aéroports de Montréal (ADM).

    The new cargo drone is designed to carry 250–500 lbs. over distances of 200+ miles, aiming to provide an efficient, low-emission alternative to traditional middle-mile freight solutions such as box trucks and tractor-trailers.

    About FN Media Group:

    At FN Media Group, via our top-rated online news portal at www.financialnewsmedia.com, we are one of the very few select firms providing top tier one syndicated news distribution, targeted ticker tag press releases and stock market news coverage for today’s emerging companies. #tickertagpressreleases #pressreleases

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    DISCLAIMER:  FN Media Group LLC (FNM), which owns and operates FinancialNewsMedia.com and MarketNewsUpdates.com, is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with any company mentioned herein.  FNM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security.  FNM’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities.  The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material.  All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks.  All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release.  FNM is not liable for any investment decisions by its readers or subscribers.  Investors are cautioned that they may lose all or a portion of their investment when investing in stocks.  For current services performed FNM has been compensated fifty one hundred dollars for news coverage of the current press releases issued by ZenaTech, Inc. by the Company.  FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

    This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.

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    SOURCE: FN Media Group

    The MIL Network

  • MIL-OSI: Unimot plans to enter the defence sector – a joint project with PZL Sędziszów and a Ukrainian partner in the field of drones

    Source: GlobeNewswire (MIL-OSI)

    WARSAW, Poland, July 24, 2025 (GLOBE NEWSWIRE) — PZL Defence was established on 21 July 2025 and is currently undergoing registration. On 24 July 2025, Unimot signed a letter of intent with PZL Sędziszów and PZL Defence, declaring its intention to develop strategic cooperation and build the new company’s expertise in the field of advanced defence technologies. At the same time, an agreement was concluded under which Unimot, following the registration of PZL Defence in the National Court Register, will acquire 40% of the shares in the new company for the amount of PLN 400,000. The initial shareholding structure also provides for a target share of 10% for PZL Sędziszów and 50% for the Ukrainian partner. After completion of the investment process and obtaining the necessary administrative approvals, PZL Defence plans to launch the production of civilian drones and then, after obtaining a licence, expand its activities to include military drones and anti-drone systems for the protection of critical infrastructure.

    “We see the growing importance of unmanned technologies for regional security. That is why we plan to engage in a project that combines Polish engineering resources with the unique know-how of our Ukrainian partners, proven not on a training ground but in real combat conditions,” says Adam Sikorski, President of the Management Board of Unimot.

    PZL Sędziszów (the name comes from the abbreviation: Polskie Zakłady Lotnicze, meaning Polish Aviation Works), as a licensed manufacturer for the defence sector, will contribute advanced expertise in precision engineering to the project and provide access to a new production hall adapted to the requirements of the defence industry and extensive laboratory and technological facilities. PZL Sędziszów is a plant with over 85 years of history and, based on its current military production licences, currently manufactures filters for military vehicles (Rosomak) and military helicopters from the Leonardo group.

    The team of the new company, PZL Defence, is being built with the participation of experts from Poland and Ukraine, including specialists with military and industrial experience. Ultimately, the company will establish a research and development (R&D) centre focused on the design of reconnaissance and interception drones, loitering munitions and systems for neutralising threats from unmanned aerial vehicles.

    “The PZL Defence project is a carefully considered response to the profound transformation taking place on the modern battlefield. Since 2022, Russia has deployed over 28,000 Shahed drones against Ukraine, and according to Ukrainian intelligence, this number could soon rise to over 500 drones every night. This clearly shows that anti-drone systems are becoming an integral part of modern defence, both offensive and defensive. Together with our partners, we want to develop technologies that provide a real response to these challenges,” emphasises Adam Sikorski.

    The planned activities are in line with the long-term trend of increasing defence spending, both in Poland and across Europe. In 2025, Poland’s defence budget will reach a record PLN 186.6 billion, which is 4.7% of the planned GDP. In the following years, spending is expected to grow – according to estimates, in 2025–2035 it may reach a total of PLN 1.9 trillion. The PZL Defence project is also in line with EU priorities such as the Readiness 2030 programme and the SAFE mechanism, which aim to allocate up to EUR 800 billion to investments in the European defence industry, with access to financial resources, EIB instruments and a flexible budgetary framework.

    CONTACT:
    Agnieszka Pawelska
    rzecznik prasowy
    tel. + 48 695 102 997
    e-mail: pr@unimot.pl
    https://www.unimot.pl/

    Source: UNIMOT S.A.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/1fc0953e-992e-47b1-80cb-cf9d1278580c

    The MIL Network

  • MIL-OSI United Kingdom: 50 years on from the signing of the Helsinki Final Act Russia fails to live up to its promises: UK statement to the OSCE

    Source: United Kingdom – Executive Government & Departments 3

    Speech

    50 years on from the signing of the Helsinki Final Act Russia fails to live up to its promises: UK statement to the OSCE

    Ambassador Holland commits to continuing to highlight and condemn Russia’s attacks against Ukraine for as long as Russia insists on carrying them out. Doing so is necessary because of the obvious humanitarian imperative but it is also a question of living up to our promises to one another when we signed the Helsinki Final Act.

    Thank you, Mr Chair.

    Mr Chair, there have been 120 Permanent Councils and 46 Special and Reinforced Permanent Councils since Russia launched its illegal full scale war of aggression on Ukraine in February 2022.  The UK has spoken on each of these occasions, highlighting Russia’s violation of the Helsinki principles and the Final Act.

    Next week we gather in Helsinki to mark 50 years of the signature of the Final Act. This should have been a moment to reflect on its positive and historic legacy; alongside the UN and Paris Charters, it has set the standards by which we should treat each other and our citizenry. Instead we are travelling to Finland with drones still pummelling Ukrainian civilian targets indiscriminately and an unapologetic Russia refusing to take the outstretched hand of peace offered to them by the victim of their aggression, Ukraine.

    The UK deeply regrets that there is still no sign of a let up in these attacks on civilians. One of the latest of these was an attack on the entrance to a metro station providing shelter to Ukrainian civilians escaping Russian bombardment. The Russian State evidently want as many Ukrainian people to be terrorised as possible. The UK will continue to highlight and condemn them for as long as Russia insists on carrying them out. As well as an obvious humanitarian imperative, doing so is also a question of living up to our promises to one another when we signed the Helsinki Final Act.

    Thank you, Mr Chair.

    Updates to this page

    Published 24 July 2025

    MIL OSI United Kingdom

  • MIL-OSI Europe: Christine Lagarde, Luis de Guindos: Monetary policy statement

    Source: European Central Bank

    Christine Lagarde, President of the ECB,
    Luis de Guindos, Vice-President of the ECB

    Frankfurt am Main, 24 July 2025

    Good afternoon, the Vice-President and I welcome you to our press conference.

    The Governing Council today decided to keep the three key ECB interest rates unchanged. Inflation is currently at our two per cent medium-term target. The incoming information is broadly in line with our previous assessment of the inflation outlook. Domestic price pressures have continued to ease, with wages growing more slowly. Partly reflecting our past interest rate cuts, the economy has so far proven resilient overall in a challenging global environment. At the same time, the environment remains exceptionally uncertain, especially because of trade disputes.

    We are determined to ensure that inflation stabilises at our two per cent target in the medium term. We will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. In particular, our interest rate decisions will be based on our assessment of the inflation outlook and the risks surrounding it, in light of the incoming economic and financial data, as well as the dynamics of underlying inflation and the strength of monetary policy transmission. We are not pre-committing to a particular rate path.

    The decisions taken today are set out in a press release available on our website.

    I will now outline in more detail how we see the economy and inflation developing and will then explain our assessment of financial and monetary conditions.

    Economic activity

    In the first quarter the economy grew more strongly than expected. This was partly because firms frontloaded exports ahead of expected tariff hikes. But growth was also bolstered by stronger private consumption and investment.

    Recent surveys point to an overall modest expansion in both the manufacturing and services sectors. At the same time, higher actual and expected tariffs, the stronger euro and persistent geopolitical uncertainty are making firms more hesitant to invest.

    The robust labour market, rising real incomes and solid private sector balance sheets continue to support consumption. Unemployment stood at 6.3 per cent in May, close to its lowest level since the introduction of the euro. Easier financing conditions are underpinning domestic demand, including in the housing market. Over time, higher public investment in defence and infrastructure should also support growth.

    More than ever, the Governing Council considers it crucial to urgently strengthen the euro area and its economy in the present geopolitical environment. Fiscal and structural policies should make the economy more productive, competitive and resilient. Governments should prioritise growth-enhancing structural reforms and strategic investment, while ensuring sustainable public finances. It is important to complete the savings and investments union and the banking union, following a clear and ambitious timetable, and to rapidly establish the legislative framework for the potential introduction of a digital euro. The Governing Council welcomes the Eurogroup’s commitment to improve the effectiveness, quality and composition of public spending and supports the efforts by European authorities to preserve the mutual benefits of global trade.

    Inflation

    Annual inflation stood at 2.0 per cent in June, after 1.9 per cent in May. Energy prices went up in June but are still lower than a year ago. Food price inflation eased slightly to 3.1 per cent. Goods inflation edged down to 0.5 per cent in June, whereas services inflation ticked up to 3.3 per cent, from 3.2 per cent in May.

    Indicators of underlying inflation are overall consistent with our two per cent medium-term target. Labour costs have continued to moderate. Year-on-year growth in compensation per employee slowed to 3.8 per cent in the first quarter, down from 4.1 per cent in the previous quarter. Combined with stronger productivity growth, this led to slower growth in unit labour costs. Forward-looking indicators, including the ECB’s wage tracker and surveys on wage expectations of firms, consumers and professional forecasters, point to a further decline in wage growth.

    Short-term consumer inflation expectations declined in both May and June, reversing the uptick observed in previous months. Most measures of longer-term inflation expectations continue to stand at around 2 per cent, supporting the stabilisation of inflation around our target.

    Risk assessment

    Risks to economic growth remain tilted to the downside. Among the main risks are a further escalation in global trade tensions and associated uncertainties, which could dampen exports and drag down investment and consumption. A deterioration in financial market sentiment could lead to tighter financing conditions and greater risk aversion, and make firms and households less willing to invest and consume. Geopolitical tensions, such as Russia’s unjustified war against Ukraine and the tragic conflict in the Middle East, remain a major source of uncertainty. By contrast, if trade and geopolitical tensions were resolved swiftly, this could lift sentiment and spur activity. Higher defence and infrastructure spending, together with productivity-enhancing reforms, would add to growth. An improvement in business confidence would also stimulate private investment.

    The outlook for inflation is more uncertain than usual, as a result of the volatile global trade policy environment. A stronger euro could bring inflation down further than expected. Moreover, inflation could turn out to be lower if higher tariffs lead to lower demand for euro area exports and induce countries with overcapacity to reroute their exports to the euro area. Trade tensions could lead to greater volatility and risk aversion in financial markets, which would weigh on domestic demand and would thereby also lower inflation. By contrast, inflation could turn out to be higher if a fragmentation of global supply chains pushed up import prices and added to capacity constraints in the domestic economy. A boost in defence and infrastructure spending could also raise inflation over the medium term. Extreme weather events, and the unfolding climate crisis more broadly, could drive up food prices by more than expected.

    Financial and monetary conditions

    Market interest rates have increased since our last meeting, especially at longer maturities. At the same time, our past interest rate cuts continue to make corporate borrowing less expensive. The average interest rate on new loans to firms declined to 3.7 per cent in May, from 3.8 per cent in April. The cost of issuing market-based debt also came down, falling to 3.6 per cent in May. While the growth rate of loans to firms moderated to 2.5 per cent in May, corporate bond issuance was stronger, growing at a rate of 3.4 per cent in annual terms.

    Credit standards for business loans were broadly unchanged in the second quarter, as reported in our latest bank lending survey for the euro area. While banks’ concerns about the economic risks faced by their customers had a tightening impact on credit standards, this was broadly offset by stronger competition among lenders. Meanwhile, firms’ demand for credit increased slightly, benefiting from lower interest rates, but they remained cautious because of global uncertainty and trade tensions.

    The average interest rate on new mortgages has barely changed since the start of the year and stood at 3.3 per cent in May. Growth in mortgage lending edged up to 2.0 per cent in May, in the context of a strong increase in demand, while credit standards tightened slightly in the second quarter.

    Conclusion

    The Governing Council today decided to keep the three key ECB interest rates unchanged. We are determined to ensure that inflation stabilises at our two per cent target in the medium term. We will follow a data-dependent and meeting-by-meeting approach to determining the appropriate monetary policy stance. Our interest rate decisions will be based on our assessment of the inflation outlook and the risks surrounding it, in light of the incoming economic and financial data, as well as the dynamics of underlying inflation and the strength of monetary policy transmission. We are not pre-committing to a particular rate path.

    In any case, we stand ready to adjust all of our instruments within our mandate to ensure that inflation stabilises sustainably at our medium-term target and to preserve the smooth functioning of monetary policy transmission.

    We are now ready to take your questions.

    MIL OSI Europe News

  • MIL-OSI NGOs: Update 304 – IAEA Director General Statement on Situation in Ukraine

    Source: International Atomic Energy Agency (IAEA) –

    The International Atomic Energy Agency (IAEA) this week provided Ukraine with a freight vehicle for the transport of radioactive material, its 150th delivery of equipment to support nuclear safety and security in the country during the military conflict, Director General Rafael Mariano Grossi said today.

    State Enterprise USIE Izotop – involved in the management of radioactive material intended for medical, industrial and other purposes – received the truck that was funded by the European Union (EU) and Sweden. IAEA staff helped ensure that transport safety and security considerations were taken into account in the design of the vehicle.

    “Since the start of the conflict three and a half years ago, the IAEA has coordinated assistance for Ukraine of a wide range of technical equipment, medical supplies and other items that are of vital importance for nuclear safety and security. These deliveries are part of our overall efforts aimed at preventing a nuclear accident during this devastating war,” Director General Grossi said.

    “Thanks to the generous support of many of our Member States and the European Union, we have now carried out shipments with a total value of more than 19 million euros, each one helping to enhance different aspects of nuclear safety and security,” he said.

    Several other deliveries have taken place in recent weeks, supported by Belgium, the EU and Japan: the regional state laboratory in Mykolaiv province – badly affected by the destruction of the Kakhovka dam in mid-2023 – received a real-time PCR cycler (Polymerase Chain Reaction, a nuclear-derived technique) for fast and accurate analysis to help it fight the spread of disease as a result of the flooding; the medical unit of the Rivne Nuclear Power Plant received an ultrasound system; and a subsidiary of national nuclear operator Energoatom received a cryostat system ensuring continuity of services affected by power cuts and liquid nitrogen supply challenges.

    Director General Grossi said nuclear safety and security remains under threat in Ukraine.

    At the Zaporizhzhya Nuclear Power Plant (ZNPP), the IAEA team based at the site has continued to hear shelling, explosions, and gunfire almost every day.

    Earlier this month, the ZNPP informed the IAEA team that the site’s training centre was targeted in a drone strike on 13 July, resulting in damage to its roof. There were no reports of casualties. The team was not granted access to assess the damage to the training centre located outside the site perimeter, with the plant citing security concerns.

    In addition, the ZNPP’s off-site power situation continues to be extremely fragile, with the plant having had access to just one single power line for almost three months now, compared to ten before the conflict.

    The nearby city of Enerhodar – where most ZNPP staff live – suffered an electricity blackout on 17 July due to damage to its main power line, according to information provided to the IAEA team members.  They were also told that subsequent shelling had damaged some buildings in the city, which was also observed when the team visited Enerhodar on 19 July.

    A forest fire near Enerhodar that caused smoke which was observed by the IAEA team last weekend has been extinguished without any impact on nuclear safety, the plant said.  

    The IAEA team has continued to carry out walkdowns across the ZNPP site to monitor nuclear safety and security, observing the testing of three emergency diesel generators as well as visiting the containment and safety system rooms of two reactor units.

    They also discussed with the plant management different options for refilling the plant’s cooling pond following the loss of the Kakhovka dam two years ago and further planning on emergency preparedness and response, including preparations for a site exercise later this year.

    At Ukraine’s operating nuclear power plants (NPPs) – Khmelnytskyy, Rivne and South Ukraine – three of their total of nine units are currently in shutdown for refuelling and maintenance.

    The IAEA team based at these plants, and the Chornobyl site, reported hearing air raid alarms nearly every day over the past week.

    At the Khmelnytskyy and South Ukraine NPPs, the IAEA teams were informed that during the night of 18 July drones were detected a few kilometres away from the two sites. That same evening, the team at Chornobyl observed flashes of light and heard explosions in the distance.

    MIL OSI NGO

  • MIL-OSI United Nations: Update 304 – IAEA Director General Statement on Situation in Ukraine

    Source: International Atomic Energy Agency (IAEA)

    The International Atomic Energy Agency (IAEA) this week provided Ukraine with a freight vehicle for the transport of radioactive material, its 150th delivery of equipment to support nuclear safety and security in the country during the military conflict, Director General Rafael Mariano Grossi said today.

    State Enterprise USIE Izotop – involved in the management of radioactive material intended for medical, industrial and other purposes – received the truck that was funded by the European Union (EU) and Sweden. IAEA staff helped ensure that transport safety and security considerations were taken into account in the design of the vehicle.

    “Since the start of the conflict three and a half years ago, the IAEA has coordinated assistance for Ukraine of a wide range of technical equipment, medical supplies and other items that are of vital importance for nuclear safety and security. These deliveries are part of our overall efforts aimed at preventing a nuclear accident during this devastating war,” Director General Grossi said.

    “Thanks to the generous support of many of our Member States and the European Union, we have now carried out shipments with a total value of more than 19 million euros, each one helping to enhance different aspects of nuclear safety and security,” he said.

    Several other deliveries have taken place in recent weeks, supported by Belgium, the EU and Japan: the regional state laboratory in Mykolaiv province – badly affected by the destruction of the Kakhovka dam in mid-2023 – received a real-time PCR cycler (Polymerase Chain Reaction, a nuclear-derived technique) for fast and accurate analysis to help it fight the spread of disease as a result of the flooding; the medical unit of the Rivne Nuclear Power Plant received an ultrasound system; and a subsidiary of national nuclear operator Energoatom received a cryostat system ensuring continuity of services affected by power cuts and liquid nitrogen supply challenges.

    Director General Grossi said nuclear safety and security remains under threat in Ukraine.

    At the Zaporizhzhya Nuclear Power Plant (ZNPP), the IAEA team based at the site has continued to hear shelling, explosions, and gunfire almost every day.

    Earlier this month, the ZNPP informed the IAEA team that the site’s training centre was targeted in a drone strike on 13 July, resulting in damage to its roof. There were no reports of casualties. The team was not granted access to assess the damage to the training centre located outside the site perimeter, with the plant citing security concerns.

    In addition, the ZNPP’s off-site power situation continues to be extremely fragile, with the plant having had access to just one single power line for almost three months now, compared to ten before the conflict.

    The nearby city of Enerhodar – where most ZNPP staff live – suffered an electricity blackout on 17 July due to damage to its main power line, according to information provided to the IAEA team members.  They were also told that subsequent shelling had damaged some buildings in the city, which was also observed when the team visited Enerhodar on 19 July.

    A forest fire near Enerhodar that caused smoke which was observed by the IAEA team last weekend has been extinguished without any impact on nuclear safety, the plant said.  

    The IAEA team has continued to carry out walkdowns across the ZNPP site to monitor nuclear safety and security, observing the testing of three emergency diesel generators as well as visiting the containment and safety system rooms of two reactor units.

    They also discussed with the plant management different options for refilling the plant’s cooling pond following the loss of the Kakhovka dam two years ago and further planning on emergency preparedness and response, including preparations for a site exercise later this year.

    At Ukraine’s operating nuclear power plants (NPPs) – Khmelnytskyy, Rivne and South Ukraine – three of their total of nine units are currently in shutdown for refuelling and maintenance.

    The IAEA team based at these plants, and the Chornobyl site, reported hearing air raid alarms nearly every day over the past week.

    At the Khmelnytskyy and South Ukraine NPPs, the IAEA teams were informed that during the night of 18 July drones were detected a few kilometres away from the two sites. That same evening, the team at Chornobyl observed flashes of light and heard explosions in the distance.

    MIL OSI United Nations News

  • MIL-OSI Security: Update 304 – IAEA Director General Statement on Situation in Ukraine

    Source: International Atomic Energy Agency – IAEA

    The International Atomic Energy Agency (IAEA) this week provided Ukraine with a freight vehicle for the transport of radioactive material, its 150th delivery of equipment to support nuclear safety and security in the country during the military conflict, Director General Rafael Mariano Grossi said today.

    State Enterprise USIE Izotop – involved in the management of radioactive material intended for medical, industrial and other purposes – received the truck that was funded by the European Union (EU) and Sweden. IAEA staff helped ensure that transport safety and security considerations were taken into account in the design of the vehicle.

    “Since the start of the conflict three and a half years ago, the IAEA has coordinated assistance for Ukraine of a wide range of technical equipment, medical supplies and other items that are of vital importance for nuclear safety and security. These deliveries are part of our overall efforts aimed at preventing a nuclear accident during this devastating war,” Director General Grossi said.

    “Thanks to the generous support of many of our Member States and the European Union, we have now carried out shipments with a total value of more than 19 million euros, each one helping to enhance different aspects of nuclear safety and security,” he said.

    Several other deliveries have taken place in recent weeks, supported by Belgium, the EU and Japan: the regional state laboratory in Mykolaiv province – badly affected by the destruction of the Kakhovka dam in mid-2023 – received a real-time PCR cycler (Polymerase Chain Reaction, a nuclear-derived technique) for fast and accurate analysis to help it fight the spread of disease as a result of the flooding; the medical unit of the Rivne Nuclear Power Plant received an ultrasound system; and a subsidiary of national nuclear operator Energoatom received a cryostat system ensuring continuity of services affected by power cuts and liquid nitrogen supply challenges.

    Director General Grossi said nuclear safety and security remains under threat in Ukraine.

    At the Zaporizhzhya Nuclear Power Plant (ZNPP), the IAEA team based at the site has continued to hear shelling, explosions, and gunfire almost every day.

    Earlier this month, the ZNPP informed the IAEA team that the site’s training centre was targeted in a drone strike on 13 July, resulting in damage to its roof. There were no reports of casualties. The team was not granted access to assess the damage to the training centre located outside the site perimeter, with the plant citing security concerns.

    In addition, the ZNPP’s off-site power situation continues to be extremely fragile, with the plant having had access to just one single power line for almost three months now, compared to ten before the conflict.

    The nearby city of Enerhodar – where most ZNPP staff live – suffered an electricity blackout on 17 July due to damage to its main power line, according to information provided to the IAEA team members.  They were also told that subsequent shelling had damaged some buildings in the city, which was also observed when the team visited Enerhodar on 19 July.

    A forest fire near Enerhodar that caused smoke which was observed by the IAEA team last weekend has been extinguished without any impact on nuclear safety, the plant said.  

    The IAEA team has continued to carry out walkdowns across the ZNPP site to monitor nuclear safety and security, observing the testing of three emergency diesel generators as well as visiting the containment and safety system rooms of two reactor units.

    They also discussed with the plant management different options for refilling the plant’s cooling pond following the loss of the Kakhovka dam two years ago and further planning on emergency preparedness and response, including preparations for a site exercise later this year.

    At Ukraine’s operating nuclear power plants (NPPs) – Khmelnytskyy, Rivne and South Ukraine – three of their total of nine units are currently in shutdown for refuelling and maintenance.

    The IAEA team based at these plants, and the Chornobyl site, reported hearing air raid alarms nearly every day over the past week.

    At the Khmelnytskyy and South Ukraine NPPs, the IAEA teams were informed that during the night of 18 July drones were detected a few kilometres away from the two sites. That same evening, the team at Chornobyl observed flashes of light and heard explosions in the distance.

    MIL Security OSI

  • Russia, Ukraine discuss more POW swaps; no deal on ceasefire or leaders’ meeting

    Source: Government of India

    Source: Government of India (4)

    Russia and Ukraine discussed further prisoner swaps on Wednesday at a brief session of peace talks in Istanbul, but the sides remained far apart on ceasefire terms and a possible meeting of their leaders.

    “We have progress on the humanitarian track, with no progress on a cessation of hostilities,” Ukraine’s chief delegate Rustem Umerov said after talks that lasted just 40 minutes.

    He said Ukraine had proposed a meeting before the end of August between Ukraine’s President Volodymyr Zelenskiy and Russian President Vladimir Putin. He added: “By agreeing to this proposal, Russia can clearly demonstrate its constructive approach.”

    Russia’s chief delegate Vladimir Medinsky said the point of a leaders’ meeting should be to sign an agreement, not to “discuss everything from scratch”.

    He renewed Moscow’s call for a series of short ceasefires of 24-48 hours to enable the retrieval of bodies. Ukraine says it wants an immediate and much longer ceasefire.

    The talks took place just over a week after U.S. President Donald Trump threatened heavy new sanctions on Russia and countries that buy its exports unless a peace deal was reached within 50 days.

    There was no sign of any progress towards that goal, although both sides said there was discussion of further humanitarian exchanges following a series of prisoner swaps, the latest of which took place on Wednesday.

    Medinsky said the negotiators agreed to exchange at least 1,200 more prisoners of war from each side, and Russia had offered to hand over another 3,000 Ukrainian bodies.

    He said Moscow was working through a list of 339 names of Ukrainian children that Kyiv accuses it of abducting. Russia denies that charge and says it has offered protection to children separated from their parents during the war.

    “Some of the children have already been returned back to Ukraine. Work is under way on the rest. If their legal parents, close relatives, representatives are found, these children will immediately return home,” Medinsky said.

    Umerov said Kyiv was expecting “further progress” on POWs, adding: “We continue to insist on the release of civilians, including children.” Ukrainian authorities say at least 19,000 children have been forcibly deported.

    SHORTEST TALKS YET

    Before the talks, the Kremlin had played down expectations, describing the two sides’ positions as diametrically opposed and saying no one should expect miracles.

    At 40 minutes, the meeting was even shorter than the two sides’ previous encounters on May 16 and June 2, which lasted a combined total of under three hours.

    Oleksandr Bevz, a member of the Ukrainian delegation, said Kyiv had proposed a Putin-Zelenskiy meeting in August because that would fall within the deadline set by Trump for a deal.

    Putin turned down a previous challenge from Zelenskiy to meet in person and has said he does not see him as a legitimate leader because Ukraine, which is under martial law, did not hold new elections when Zelenskiy’s five-year mandate expired last year.

    Trump has patched up relations with Zelenskiy after a public row with him at the White House in February, and has lately expressed growing frustration with Putin.

    Three sources close to the Kremlin told Reuters last week that Putin, unfazed by Trump’s ultimatum, would keep fighting in Ukraine until the West engaged on his terms for peace, and that his territorial demands may widen as Russian forces advance.

    (Reuters)

  • EU’s von der Leyen says China ties are at ‘inflection point’ at tense summit

    Source: Government of India

    Source: Government of India (4)

    European Commission President Ursula von der Leyen called for an “essential” rebalancing of trade ties with China during a tense summit on Thursday with President Xi Jinping, saying ties stood at an “inflection point”, according to a pool report.

    Expectations were low for the summit marking 50 years of diplomatic ties after weeks of escalating tension and wrangling over its format, with the duration abruptly halved to a single day at Beijing’s request.

    Von der Leyen and European Council President Antonio Costa met Xi at the start of an event set to be dominated by thorny issues ranging from trade frictions to the Ukraine war.

    “As our cooperation has deepened, so have imbalances. We have reached an inflection point,” von der Leyen told Xi during the meeting in the Great Hall of the People.

    She was referring to the EU’s trade deficit with China, which ballooned to a historic 305.8 billion euros ($360 billion) last year.

    “Rebalancing of our bilateral relation is essential … It is vital for China and Europe to acknowledge our respective concerns and come forward with real solutions.”

    However, Xi urged the EU to “make correct strategic choices” during the meeting, state broadcaster CCTV said, in a veiled criticism of Brussels’ hawkish stance on China.

    “The more severe and complex the international situation, the more China and the EU must strengthen communication, enhance mutual trust and deepen cooperation,” Xi told von der Leyen and Costa, it said.

    “Chinese and European leaders should … make correct strategic choices that meet the expectations of the people.”

    The weeks before the summit were dominated by tit-for-tat trade disputes and hawkish European rhetoric, such as a July 8 accusation by von der Leyen that China was flooding global markets as a result of its overcapacity and “enabling Russia’s war economy”.

    Shortly before the summit, however, von der Leyen struck a more conciliatory tone, describing it as an opportunity to “both advance and rebalance our relationship” in a post on X on Thursday.

    “I’m convinced there can be a mutually beneficial cooperation,” von der Leyen added.

    The two EU officials are set to meet Chinese Premier Li Qiang later. Both sides are hoping to reach a modest joint statement on climate, currently one of the only bright spots in EU-China cooperation.

    State news agency Xinhua also appeared to downplay Beijing’s rivalry with the 27-member bloc, saying China was a “critical partner” for Europe, with a range of shared interests.

    “China is a critical partner to Europe, not a systemic rival,” it said in a commentary.

    The two shared interests in trade, climate, and global governance, it said, adding, “These areas of common ground should not be eclipsed by isolated points of friction.”

    The EU defines China as a “partner, competitor and systemic rival”, which frames its strategic approach to China policy.

    At the summit, European leaders are also expected to raise topics such as electric vehicles and Chinese industrial overcapacity.

    China launched rare earth export controls in April that disrupted supply chains worldwide, leading to temporary stoppages in European automotive production lines the following month.

    But its exports of rare earth magnets to the EU surged in June by 245% from May, to stand at 1,364 metric tons, though that was still 35% lower than the year-earlier figure, customs data showed.

    The EU is likely to seal a trade deal with the United States for a broad tariff of 15% on its exports after intense negotiations, avoiding a harsher 30% figure threatened by President Donald Trump.

    (Reuters)

  • MIL-OSI: Tanate Phutrakul to step down as CFO at 2026 AGM

    Source: GlobeNewswire (MIL-OSI)

    Tanate Phutrakul to step down as CFO at 2026 AGM

    ING announced today that Tanate Phutrakul will step down from his position as CFO and member of the Executive Board of ING. Tanate will leave ING as of the Annual General Meeting in April 2026, after 24 years at ING of which seven on the Executive Board. 

    Karl Guha, chairman of ING’s Supervisory Board said: “It has been a privilege to work with Tanate. I have come to know him as a man of good grace, integrity, and high standards. He has been instrumental in helping steer ING to a better place of strong performance and delivering on our promises. We are fortunate to still have him on our executive team until the AGM and wish him every success in the next phase of his life.”

    Steven van Rijswijk, CEO of ING said: “I want to thank Tanate for his many years serving ING. While it is never easy to see a colleague leave, after seven years as CFO on the board it is a logical moment for Tanate to step down. With his deeply professional and pleasant approach, he has played a pivotal role in guiding ING through a turbulent period for the bank, the sector and the world. He has done so with his trademark calmness and has been an invaluable part of our executive team. His contributions in making ING the strong and financially sound bank it is today, which enables our current growth strategy, can hardly be overestimated. We look forward to continue to work with Tanate in the coming months.”

    Tanate Phutrakul said: “It has been and still is a pleasure to serve as a board member of ING, having helped shape the bank into what it is. It has been a wonderful journey. Many thanks for the kind support of Steven and my fellow board members and especially to the many ING colleagues I have worked with over the years.”

    Tanate joined ING in 1998 as managing director of ING Barings Securities Thailand. From 2003 until 2008 he served as head of Wholesale Banking and chief financial officer of TMB Bank in Thailand. In successive years he served as CFO of ING’s Operations and IT unit, ING Retail Banking International and ING Belgium. In 2019, he was appointed to the Executive Board as CFO of ING Group. 

    The search for a successor has been initiated and announcements will be made in due course. 

    Note for editors
    For further information on ING, please visit www.ing.com. Frequent news updates can be found in the Newsroom. Photos of ING operations, buildings and its executives are available for download at Flickr.

    ING PROFILE
    ING is a global financial institution with a strong European base, offering banking services through its operating company ING Bank. The purpose of ING Bank is: empowering people to stay a step ahead in life and in business. ING Bank’s more than 60,000 employees offer retail and wholesale banking services to customers in over 100 countries.

    ING Group shares are listed on the exchanges of Amsterdam (INGA NA, INGA.AS), Brussels and on the New York Stock Exchange (ADRs: ING US, ING.N).

    ING aims to put sustainability at the heart of what we do. Our policies and actions are assessed by independent research and ratings providers, which give updates on them annually. ING’s ESG rating by MSCI was reconfirmed by MSCI as ‘AA’ in August 2024 for the fifth year. As of June 2025, in Sustainalytics’ view, ING’s management of ESG material risk is ‘Strong’ with an ESG risk rating of 18.0 (low risk). ING Group shares are also included in major sustainability and ESG index products of leading providers. Here are some examples: Euronext, STOXX, Morningstar and FTSE Russell. Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that’s not. Follow our progress on ing.com/climate.

    IMPORTANT LEGAL INFORMATION
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  • MIL-OSI Russia: Ukraine has returned more than a thousand servicemen from Russian captivity

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    An important disclaimer is at the bottom of this article.

    Source: People’s Republic of China – State Council News

    KYIV, July 24 /Xinhua/ — Ukraine has secured the release of more than a thousand servicemen as part of the agreements reached at peace talks in Istanbul, Turkey, the Ukrainian Coordination Headquarters for the Treatment of Prisoners of War reported on Telegram on Wednesday.

    In total, Ukraine and Russia have conducted nine stages of prisoner exchanges under the Istanbul agreements. During the latest exchange, wounded and seriously ill servicemen were released.

    Among those released are reportedly representatives of the Armed Forces of Ukraine, the State Border Service, the National Guard and the National Police. –0–

    Please note: This information is raw content obtained directly from the source of the information. It is an accurate report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

    .

    MIL OSI Russia News

  • MIL-OSI Australia: The RBA’s Dual Mandate – Inflation and Employment

    Source: Airservices Australia

    I’d like to begin by acknowledging the Traditional Custodians of the land on which we meet and pay my respects to Elders past and present.

    It’s an honour to join you today at the Anika Foundation fundraising lunch. The Foundation supports vital work on youth mental health research, awareness and education, in which I have a strong personal interest.

    I’m proud to uphold the tradition of the Reserve Bank Governor speaking at this event to support an organisation that is making a real difference.

    My remarks today centre on the dual objectives of monetary policy: ‘price stability’, which means maintaining low and stable inflation; and full employment, which I will talk about in more detail later.

    I’ll explore how these aims have shaped the Monetary Policy Board’s strategy in recent years. As part of that, I will reflect on the relationship between the labour market and inflation over that time, and how conditions in the labour market have evolved to the present day.

    Now is a good time to revisit these subjects, following the agreement two weeks ago of an updated Statement on the Conduct of Monetary Policy, which sets out the common understanding of Government and the Board on key elements of the monetary policy framework.

    But before I turn to that, I’ll start with an update on recent monetary policy settings.

    Recent monetary policy settings

    If you cast your mind back to 2022, you will recall that inflation was higher than it had been in decades, peaking at 7.8 per cent at the end of that year. It was this rise in inflation that required a tightening in monetary policy over 2022 and 2023, with the cash rate increasing from almost zero to 4.35 per cent over that period.

    Over the past couple of years, we have made meaningful progress in bringing inflation down. Higher interest rates have been working to bring aggregate demand and supply closer towards balance. We expect headline inflation in the June quarter to be in the lower half of our 2–3 per cent target range – although that partly reflects the ongoing effect of temporary cost-of-living relief. As that effect unwinds, we expect headline inflation to pick up to around the top of the band at the end of this year and into the first part of 2026.

    To help look through temporary factors like this, we also pay close attention to trimmed mean inflation (published quarterly), which provides a good guide to underlying inflation trends. This measure has also been easing, but it’s still a bit higher than headline inflation. At 2.9 per cent in the March quarter, year-ended trimmed mean inflation was under 3 per cent for the first time since 2021.

    We expect trimmed mean inflation to fall a little further in the June quarter in year-ended terms. However, the monthly CPI Indicator data, which are volatile, suggest that the fall may not be quite as much as we forecast back in May. We still think it will show inflation declining slowly towards 2½ per cent, but we are looking for data to support this expectation.

    Encouragingly, as inflation has slowed, the labour market has eased only gradually and the unemployment rate is relatively low. I’ll have more to say on developments in the labour market later.

    Since February, we have reduced the cash rate by 50 basis points. The Board continues to judge that a measured and gradual approach to monetary policy easing is appropriate. Global economic and policy developments have so far been largely in line with our baseline May forecasts, and the likelihood of a severe downside ‘trade war’ appears to have diminished. But there is still uncertainty and unpredictability in the global economy. The Board’s view is that monetary policy is well placed to respond decisively to adverse international developments if needed.

    Our longstanding strategy has been to bring inflation back to target while preserving as many of the gains in the labour market as possible. This approach meant that interest rates in Australia did not rise as high as they did in some other economies, and so we may not need to lower them as much on the way down.

    We also know that Australians continue to feel cost-of-living pressures, with the average level of prices now notably higher than it was just a few years ago. That is why we want to make sure that inflation remains low and stable from here on in. Low and stable inflation is good for households, good for jobs, good for communities and good for the economy.

    Our goals of price stability and full employment generally reinforce each other

    Stepping back from current policy settings and the inflationary episode of recent years, I now want to reflect on the framework that guides the Board’s decisions more generally.

    The RBA’s monetary policy objectives are set out in legislation. Our overarching goal is to promote the economic prosperity and welfare of the Australian people, both now and into the future. For the Board, this means setting monetary policy in a way that best achieves both price stability and full employment.

    These goals are often referred to as our ‘dual mandate’ and are longstanding objectives of the RBA.

    Over time, low and stable inflation and full employment go hand in hand. Low and stable inflation – or price stability – is a prerequisite for strong and sustainable employment growth because it creates favourable conditions for households and businesses to plan, invest and create jobs without having to worry about inflation. So our two objectives are complementary over the longer term.

    Even in the shorter term, the two objectives often go hand in hand. For example, when there are ups and downs in demand, inflation tends to rise as the labour market tightens, and fall as it loosens. So a monetary policy response that returns inflation to target will, in time, also move the labour market towards full employment.

    But sometimes there are developments that push up inflation at the same time as they weigh down demand – and therefore employment. This includes sharp increases in energy prices and supply disruptions that push up prices more broadly. As I’ll discuss in a moment, such ‘negative supply shocks’ were part of the reason for the high inflation of recent years, though they were not the only factor.

    In the face of supply shocks that push up prices, we need to think about possible trade-offs: how do we balance our two goals in these circumstances?

    If a supply disruption is temporary and modest, monetary policy should mostly ‘look through’ it. Raising interest rates makes little sense if inflation is expected to ease once temporary supply disruptions are resolved – it would only weaken the job market.

    By contrast, when a supply shock is likely to have a longer lasting effect on the economy and inflation there may be stronger grounds for monetary policy to respond.

    A key concern here is that the longer inflation stays high, the more households’ and businesses’ expectations for future inflation could increase. This could, in turn, lead to second-round effects on inflation as households and businesses build higher expectations into their decisions.

    But if households and businesses instead maintain a high level of confidence that the Board will do what is needed to return inflation to target, inflationary shocks will have less effect on price and wage setting. That means we can look through adverse supply shocks to a greater extent – even those that we think could last for some time.

    This highlights another important way in which our objectives are complementary – and it’s something I want to emphasise. Having a strong track record of low and stable inflation puts us in the best possible position to support employment. It means there is less risk of inflation getting out of control, which allows inflation to be brought down with smaller increases in interest rates than otherwise. This in turn keeps the labour market closer to full employment.

    That is why maintaining well-anchored inflation expectations is a key benefit of inflation targeting frameworks, as I will return to in a moment, and why it is important that inflation returns to be sustainably in our target range.

    The dual mandate in the post-pandemic period

    So how did this dual mandate shape our policy response to the post-pandemic rise in inflation?

    First, the starting point for our monetary policy settings mattered – these were of course very accommodative, with the cash rate effectively at zero.

    Second, the causes of the pick-up in inflation were crucial. The initial pick-up in inflation was partly driven by some of the supply factors I have mentioned. Temporary disruptions in global supply chains during the pandemic led to strong increases in goods prices, and the war in Ukraine caused a spike in global energy prices.

    But it was also clear that demand was part of the story. Accommodative fiscal and monetary policy settings in the pandemic period supported strong growth in demand for goods during lockdowns, and this demand strength interacted with supply constraints to amplify inflationary pressures. Then, as lockdowns eased and the economy started to recover, demand for services also recovered strongly. As a result, conditions in product markets and labour markets were very tight by mid-2022.

    It was clear that we needed to increase interest rates to bring about a better balance between demand and supply, which would help to ease domestic price pressures. This need was reinforced by a concern that longer run inflation expectations could increase. If this happened, it would add to inflationary pressure and would ultimately require a larger policy response, and higher job losses.

    Although it was clear that we needed to raise interest rates to slow demand growth, it was less clear how quickly demand pressures needed to ease, how persistent global shocks or their effects would be, and how much we could afford to ‘look through’ those effects.

    The Board could have chosen to match the more significant rate increases of some other central banks to bring inflation back to target more quickly. But this could have risked a sharper and more persistent increase in the unemployment rate.

    Instead, the Board judged that a measured approach was consistent with its dual mandate. We increased the cash rate quickly at first – but we didn’t go as high as some other central banks. We then held the cash rate for over a year, even as some other central banks started easing monetary policy. Throughout, we kept a close eye on longer term inflation expectations, to ensure they remained anchored to the target.

    This strategy was designed to rein in inflation while also preserving as many of the gains in the labour market as possible – an example of our dual mandate in practice.

    How has this played out so far?

    Since the peak of inflation in 2022, headline inflation has declined by over 5 percentage points. And over the same period there has been a relatively modest easing in labour market conditions. The unemployment rate has increased from around 3.5 per cent in mid-2022 to 4.2 per cent in the June quarter this year, and remains low by historical standards.

    Crucially, the share of the population in work has remained around record highs; this is in contrast to declines in many other advanced economies (Graph 1).

    The fact that unemployment has remained low and employment growth has remained strong is remarkable – and very welcome.

    And it is striking that the increase in the unemployment rate has been small compared with the large decline in inflation. This is especially true compared with previous episodes of disinflation in Australia (Graph 2).

    Why is this?

    Part of the answer is that the supply-driven price increases that I mentioned earlier did turn out to be temporary, even if they flowed through to the economy over a long period of time (Graph 3). As these supply disruptions eventually subsided and oil prices declined, price pressures eased.

    And also as I mentioned earlier, the Board were very alert to the risk that inflation expectations could increase. Crucially, that did not happen.

    Instead, households and businesses continued to believe that inflation would return to the target range (Graph 4). This limited any so-called ‘second-round’ effects on inflation, which allowed inflation to fall without a sharp rise in the unemployment rate.

    This demonstrates the point I made earlier about how our two objectives can be complementary. A history of low and stable inflation, and the resulting public confidence in the inflation target, enabled the Board to adopt a strategy that protected the labour market as much as possible while still ensuring inflation came down.

    How has the labour market adjusted in the current cycle?

    I’ve already highlighted the comparatively modest increase in the unemployment rate over the past few years from a very low level, and that overall employment has continued growing. The rate of layoffs has increased only a little and remains at a remarkably low level by historical standards (Graph 5). The share of workers who are long-term unemployed also remains low.

    These are good outcomes – as job losses are an especially painful way for the labour market to adjust to tighter monetary policy. Losing a job can be one of the most stressful events in someone’s life, and it can have far-reaching implications for families and communities.

    While the unemployment rate has risen since its trough in late 2022, including an uptick in the month of June, there has been significant jobs growth in aggregate. Instead, the labour market has adjusted in some other – less disruptive – ways.

    First, job vacancies have declined from a very high level as firms have slowed hiring activity.

    Second, the average number of hours that people are working has declined. This follows a period when hours had increased sharply due to very strong demand for workers (Graph 6).

    Having your hours cut is tough, but it’s often preferable to losing a job altogether. And it’s worth noting that some of this decline in hours has been voluntary, especially over the past year or so.

    Third, there has been a decline in the share of workers voluntarily leaving their jobs (the ‘quits rate’). This suggests there could be less need for firms to compete to attract and retain workers, implying less upward pressure on wages growth than otherwise (Graph 7).

    In summary, the gradual easing in labour market conditions has so far been most evident in fewer job vacancies, reductions in hours worked and declining rates of voluntary job switching.

    These shifts aren’t without their challenges, but they all tend to be less disruptive than outright job losses.

    I should note that the RBA can’t wave a magic wand and control how adjustments in the labour market play out. Interest rates are too blunt an instrument for that, and I am not here to claim credit for the fact that the adjustment has so far taken place in a less costly way.

    By the same token, because the labour market can adjust in different ways, we do not ‘target’ any one adjustment mechanism, such as a set number of job losses, as we seek to bring demand and supply back into balance. Indeed, there have been substantial job gains over this period.

    Are we close to full employment?

    Let me bring the labour market story up to date.

    Our overall assessment at the time of our most recent forecast in May was that there was still some tightness in the labour market, and we expected it to ease a little over the remainder of this year.

    A broad range of indicators underpinned this assessment, and in many ways not much has changed. Firms still report significant difficulties finding labour, even if this constraint has eased somewhat recently. The ratio of vacancies to unemployed people remains high (Graph 8). At the same time, unit labour costs have been increasing strongly.

    In May we also highlighted the possibility that labour market conditions could be less tight than we thought. As I noted earlier, the low rate of job switching may imply less upward pressure on wage growth than otherwise. And the quarterly rate of underlying inflation has recently been around a pace that would be consistent with 2½ per cent in annual terms.

    For that reason, our May forecasts for wages growth and inflation incorporated some downwards judgement to reflect the possibility that there is more capacity in the labour market – and the economy more broadly – than is suggested by our usual assessment.

    Last week brought us the latest labour market data, which confirmed that the unemployment rate increased in the June quarter. Some of the coverage of the latest data suggested this was a shock – but the outcome for the June quarter was in line with the forecast we released in May. That on its own suggests that the labour market moved a little further towards balance, as we were anticipating. While the June monthly data showed a noticeable pick-up in the unemployment rate, other measures – such as the vacancy rate – have been stable recently. More broadly, leading indicators are not pointing to further significant increases in the unemployment rate in the near term.

    Nevertheless, the risks we highlighted in May remain. As always, there is uncertainty around how labour market conditions stand relative to full employment, and we will continue to closely monitor incoming labour market data. Our August Statement on Monetary Policy will provide a full updated assessment of labour market conditions and the outlook.

    Concluding remarks

    So, to conclude, our goals of low and stable inflation and full employment are closely linked and generally reinforce each other.

    A critical feature of the recent high-inflation period is that longer term inflation expectations remained anchored. This has enabled the Board’s monetary policy strategy of bringing inflation down in a relatively gradual way so as to limit the easing in labour market conditions.

    Much of the rebalancing of demand and supply in the labour market that has occurred in recent years has been reflected in declines in job vacancies, hours worked and voluntary job switching. There are many ways the labour market can adjust. The RBA doesn’t ‘target’ a specific outcome, like a certain unemployment rate or number of job losses, to reach full employment.

    Monetary policy cannot control how the adjustment happens, but if it can occur while keeping employment strong – and even growing – that is a great outcome for workers, families, communities and the economy.

    In the end, the best way to promote the economic welfare of Australians is by achieving low and stable inflation alongside full employment.

    And that is what the Board is constantly striving for.

    Thank you and I look forward to taking your questions.

    MIL OSI News

  • MIL-OSI China: 3rd round of Russia-Ukraine talks agrees on prisoner exchange, differs on ceasefire

    Source: People’s Republic of China – State Council News

    Russian and Ukrainian delegations held a third round of peace talks on Wednesday evening at the Ciragan Palace, during which the two sides agreed on another prisoner exchange but clashed on ceasefire terms and a potential presidential meeting.

    Russian presidential aide Vladimir Medinsky and Secretary of Ukraine’s National Security and Defense Council Rustem Umerov led the Russian and Ukrainian delegations, respectively. The closed-door talks were chaired by Turkish Foreign Minister Hakan Fidan.

    Following the talks, which lasted for less than one hour, Umerov said at a press conference that Ukraine continues to insist on a full and unconditional ceasefire as the essential foundation for effective diplomacy.

    “We are ready for a ceasefire now and to start substantive peace negotiations, and it is up to the other side to accept this basic step towards peace,” Umerov said.

    “We emphasize that the ceasefire must be genuine. It must include a complete cessation of strikes on civilian and critical infrastructure,” he said.

    Prior to the talks, Kremlin spokesman Dmitry Peskov said Tuesday that Moscow and Kiev are “diametrically opposed” in their positions on how to end the conflict, noting that “much work” still needs to be done.

    The Ukrainian side has proposed to Russia to hold a meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky “by the end of August,” where the participation of U.S. President Donald Trump and Turkish President Recep Tayyip Erdogan will be “especially valuable,” he said.

    During a separate press conference after the talks, Medinsky said Russia and Ukraine agreed to exchange 1,200 prisoners of war each, including a proposal from Moscow to swap about 30 civilians held by Ukraine in the Kursk region.

    Russia has returned the bodies of 7,000 fallen Ukrainian soldiers and is ready to return 3,000 more, he said, requesting the return of any number of deceased Russian soldiers from Ukraine.

    He also said that the Russian side proposed establishing three online working groups with Ukraine to address political, humanitarian, and military issues, and asked Ukraine to consider declaring short ceasefires of 24-48 hours along the contact line to evacuate the wounded soldiers and recover the bodies of fallen troops.

    As to the Putin-Zelensky meeting Ukraine proposed, Medinsky said such a meeting is not being considered until certain processes are completed.

    Meanwhile, Zelensky wrote on social media platform X after the talks that the ninth stage of prisoner exchange took place “today,” which involved more than 1,000 people from the Ukrainian side, including those “seriously ill and severely wounded.”

    “It is important that the exchanges are ongoing,” he wrote.

    In his opening remarks to the talks, Fidan urged the two delegations to engage in result-oriented negotiations aimed at achieving a ceasefire and ultimately ending the war.

    “Our goal is to end this bloody war, which has come at a heavy cost, as soon as possible,” Fidan said.

    While the previous two rounds of talks in Istanbul — held on May 16 and June 2 — led to the exchange of thousands of war prisoners and the bodies of fallen soldiers, they produced little progress toward a ceasefire.

    MIL OSI China News

  • MIL-OSI Russia: Russia and Ukraine held the 3rd round of peace talks in Istanbul

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    An important disclaimer is at the bottom of this article.

    Source: People’s Republic of China – State Council News

    ISTANBUL, July 23 (Xinhua) — Russian and Ukrainian delegations held the third round of peace talks at the Ciragan Palace in Istanbul on Wednesday, which started at 20:30 local time (17:30 GMT) and lasted for almost an hour and a half.

    The Russian and Ukrainian delegations were headed by Russian presidential aide Vladimir Medinsky and Secretary of the National Security and Defense Council of Ukraine Rustem Umerov, respectively. The talks were chaired by Turkish Foreign Minister Hakan Fidan and head of the Turkish National Intelligence Organization Ibrahim Kalin.

    At the end of the negotiations, V. Medinsky told journalists that the Russian side proposed creating three Russian-Ukrainian working groups that would work online to resolve political, humanitarian and military issues.

    He also noted that both sides agreed on another round of prisoner exchange.

    Before the start of the negotiations, H. Fidan made an opening speech in which he called on the delegations of both countries to engage in productive negotiations aimed at achieving a truce and ultimately ending the war.

    “Our goal is to put an end to this bloody war, which has cost too much, as soon as possible,” said H. Fidan.

    Two previous rounds of talks in Istanbul, held on May 16 and June 2, resulted in the exchange of thousands of prisoners of war and the bodies of dead soldiers, but produced little progress on achieving a ceasefire. –0–

    Please note: This information is raw content obtained directly from the source of the information. It is an accurate report of what the source claims and does not necessarily reflect the position of MIL-OSI or its clients.

    .

    MIL OSI Russia News

  • MIL-OSI United Nations: UN rights mission deplores deadly Russian strikes in Ukraine

    Source: United Nations 2-b

    According to the UN mission, the overnight assault from Saturday into Sunday – one of the largest of its kind since Russia’s full-scale invasion in February 2022 – resulted in civilian casualties and damage to homes and infrastructure across 10 regions of Ukraine, including the capital, Kyiv.

    At least three children were among those killed and nine children were reported injured. The mission is currently working to verify the full extent of the casualties and the broader impact of the attack.

    “With at least 78 people reported killed or injured across the country, last night’s attack tragically demonstrates the persistent deadly risk to civilians of using powerful weapons in urban areas, including those far away from the frontline,” Danielle Bell, HRMMU Head, said in a news release on Sunday.

    “It is yet another addition to the staggering human toll this war continues to inflict on civilians, with more families across the country now grieving their losses.”

    No place is safe

    Matthias Schmale, the UN Humanitarian Coordinator for Ukraine, also voiced deep concern over the civilian suffering.

    “I am horrified that yet again civilians – among them children – were killed in last night’s massive attacks,” he said in a statement posted on the social media platform X.

    “Across Ukraine, no place is safe. Homes and civilian infrastructure were hit. Grateful to humanitarian NGOs and state services who are immediately supporting affected people. Civilians must never be a target.”

    Use of long-range weapons

    Ukrainian authorities reported that the Russian armed forces launched at least 367 missiles and loitering munitions during the night, in a coordinated attack with air, sea and land-based systems.

    The strike followed a similar assault the previous night, which had mainly targeted the Kyiv region.

    HRMMU noted that the use of long-range weapons in urban areas has been a major driver of civilian casualties in March and April. While the number of casualties in May had been somewhat lower than April before the latest attack, the toll from this weekend’s strikes will add to the monthly figures.

    MIL OSI United Nations News

  • 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 News

  • MIL-OSI: Northrim BanCorp Earns $11.8 Million, or $2.09 Per Diluted Share, in Second Quarter 2025

    Source: GlobeNewswire (MIL-OSI)

    ANCHORAGE, Alaska, July 23, 2025 (GLOBE NEWSWIRE) — Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $11.8 million, or $2.09 per diluted share, in the second quarter of 2025, compared to $13.3 million, or $2.38 per diluted share, in the first quarter of 2025, and $9.0 million, or $1.62 per diluted share, in the second quarter a year ago. The increase in second quarter 2025 profitability as compared to the second quarter a year ago was primarily the result of an increase in net interest income, higher purchased receivable income, and increased mortgage banking income, which were partially offset by a higher provision for credit losses, higher other operating expenses, and a higher provision for income taxes. Net interest income increased primarily due to higher loan balances and higher yields on earning assets. Purchased receivable income increased primarily due to the Company’s acquisition of Sallyport Commercial Finance, LLC (“Sallyport or SCF”), which was completed on October 31, 2024. Sallyport and its direct and indirect subsidiaries provide services and products related to purchased receivable factoring and asset-based lending in the United States, Canada, and the United Kingdom.

    Dividends per share in the second quarter of 2025 remained consistent with the first quarter of 2025 at $0.64 per share as compared to $0.61 per share in the second quarter of 2024.

    “Strong loan growth, increasing asset yields, and stable funding costs drove record net interest income in the second quarter of this year,” said Mike Huston, Northrim’s President and Chief Executive Officer. “We continue to attract new customers to Northrim and believe we have an opportunity to steadily increase our market share over the next few years.”

    Second Quarter 2025 Highlights:

    • Net interest income in the second quarter of 2025 increased 7% to $33.6 million compared to $31.3 million in the first quarter of 2025 and increased 24% compared to $27.1 million in the second quarter of 2024.
    • Net interest margin on a tax equivalent basis (“NIMTE”)* was 4.72% for the second quarter of 2025, up 11-basis points from the first quarter of 2025 and up 42-basis points from the second quarter a year ago.
    • Return on average assets (“ROAA”) was 1.48% and return on average equity (“ROAE”) was 16.37% for the second quarter of 2025 compared to ROAA of 1.76 and ROAE of 19.70 in the prior quarter and ROAA of 1.31% and ROAE of 14.84% for the second quarter of 2024.
    • Portfolio loans were $2.20 billion at June 30, 2025, up 4% from the preceding quarter and up 17% from a year ago, primarily due to new customer relationships and expanding market share, as well as retaining certain mortgages originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”). The Company sold $61 million in consumer mortgages in the second quarter of 2025 that were included in loans held for investment as of the end of 2024 to reduce the concentration of residential real estate loans and to provide additional liquidity for future commercial and construction loan growth.
    • Total deposits were $2.81 billion at June 30, 2025, up 1% from the preceding quarter, and up 14% from $2.46 billion a year ago. Non-interest bearing demand deposits increased 5% from the preceding quarter and increased 10% year-over-year to $777.9 million at June 30, 2025 and represent 28% of total deposits.
    • The average cost of interest-bearing deposits was 2.04% at June 30, 2025, up slightly from 2.01% at March 31, 2025 and down from 2.21% at June 30, 2024.
    • Mortgage loan originations were $277.1 million in the second quarter of 2025, up from $121.6 million in the first quarter of 2025 and up from $181.5 million in the second quarter a year ago. Mortgage loans funded for sale were $249.7 million in the second quarter of 2025, compared to $108.5 million in the first quarter of 2025 and $152.3 million in the second quarter of 2024.
    Financial Highlights Three Months Ended
    (Dollars in thousands, except per share data) June 30, 2025 March 31, 2025 December 31,
    2024
    September 30,
    2024
    June 30, 2024
    Total assets $ 3,243,760   $ 3,140,960   $ 3,041,869   $ 2,963,392   $ 2,821,668  
    Total portfolio loans $ 2,202,115   $ 2,124,330   $ 2,129,263   $ 2,007,565   $ 1,875,907  
    Total deposits $ 2,809,170   $ 2,777,977   $ 2,680,189   $ 2,625,567   $ 2,463,806  
    Total shareholders’ equity $ 290,219   $ 279,756   $ 267,116   $ 260,050   $ 247,200  
    Net income $ 11,778   $ 13,324   $ 10,927   $ 8,825   $ 9,020  
    Diluted earnings per share $ 2.09   $ 2.38   $ 1.95   $ 1.57   $ 1.62  
    Return on average assets   1.48 %   1.76 %   1.43 %   1.22 %   1.31 %
    Return on average shareholders’ equity   16.37 %   19.70 %   16.32 %   13.69 %   14.84 %
    NIM   4.66 %   4.55 %   4.41 %   4.29 %   4.24 %
    NIMTE*   4.72 %   4.61 %   4.47 %   4.35 %   4.30 %
    Efficiency ratio   64.68 %   63.54 %   66.96 %   66.11 %   68.78 %
    Total shareholders’ equity/total assets   8.95 %   8.91 %   8.78 %   8.78 %   8.76 %
    Tangible common equity/tangible assets*   7.50 %   7.41 %   7.23 %   8.28 %   8.24 %
    Book value per share $ 52.55   $ 50.67   $ 48.41   $ 47.27   $ 44.93  
    Tangible book value per share* $ 43.35   $ 41.47   $ 39.17   $ 44.36   $ 42.03  
    Dividends per share $ 0.64   $ 0.64   $ 0.62   $ 0.62   $ 0.61  
    Common stock outstanding   5,522,271     5,520,892     5,518,210     5,501,943     5,501,562  
                                   

    * References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (both of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. See the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures.

    Alaska Economic Update
    (Note: sources for information included in this section are included on page 14.)

    The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in May of 2025 was 4.7% compared to the U.S. rate of 4.2%. The rate has held steady in Alaska at 4.7% for eight consecutive months. The total number of payroll jobs in Alaska, not including uniformed military, increased 1.1% or 3,800 jobs between May of 2024 and May of 2025.  

    According to the DOL, the Oil and Gas sector had the largest growth rate in new jobs of 8.8% through May of this year compared to the prior year, up 700 direct jobs. The Construction sector added 700 positions for a year-over-year growth rate of 3.7% through May of 2025. The larger Health Care sector grew by 1,200 jobs for an annual growth rate of 2.9%. Transportation, Warehousing and Utilities added 600 jobs for a 2.3% growth rate over the same period. Professional and Business Services increased 500 jobs year-over-year through May of 2025, up 1.7%.

    The Government sector grew by 200 jobs for 0.2% growth, adding 400 State positions while losing 200 Federal jobs in Alaska over the same period. Declining sectors between May 2024 and May 2025 were Information down 100 jobs or (-2.3%), Manufacturing (primarily seafood processing) shrinking 200 positions (-2.1%), Wholesale Trade lost 100 jobs (-1.5%) and Financial Activities, down 100 jobs (-0.9%).

    Alaska’s seasonally adjusted personal income was $57.4 billion in the first quarter of 2025 according to the Federal Bureau of Economic Analysis (“BEA”). This was an annualized improvement in the first quarter of 6.4% for Alaska, compared to the national average of 6.7%. Alaska enjoyed an annual personal income improvement of 6% in 2024 compared to the U.S. increase of 5.4%, ranking Alaska 6th best in the nation. The $885 million increase in personal income in the first quarter of 2025 in Alaska came from a $352 million increase in net earnings from wages, $440 million growth in government transfer receipts, and a $92 million increase in investment income.

    Alaska’s Gross State Product (“GSP”) in the first quarter of 2025 reached $72 billion according to the BEA. Alaska’s inflation adjusted “real” GSP increased 1.5% in 2024 and decreased -1.8% annualized in the first quarter of 2025. The average U.S. GDP growth rate was 2.8% for 2025 and -0.5% in the first quarter of 2025. Alaska’s real GSP decrease in the first quarter of 2025 was primarily caused by a decrease in the Mining, Oil & Gas sector, somewhat offset by improvements in the Construction sector.

    Alaska exported $5.9 billion in goods to foreign countries in 2024 according to the U.S. International Trade Administration. China is the largest importer of Alaska’s products at $1.5 billion, followed by Australia at $804 million, Japan at $674 million and South Korea at $634 million in 2024. Fish and related maritime products accounted for the largest volume at $2.1 billion, followed by minerals and ores at $2 billion, and primary metals at $992 million in 2024. Oil & Gas exports are $380 million because the majority of Alaska’s production is refined and consumed in the United States. Chief Credit Officer and Bank Economist Mark Edwards stated, “President Trump’s significant changes to international tariffs has created uncertainty in trade markets. At this time, it is unknown how each country will respond. Alaska’s natural resources are highly valued commodities throughout the world. If issues arise with one country, such as China, it is most likely that Alaska’s products will be redirected to other markets like Japan and South Korea or sold domestically in the United States. Canada is the largest long-term investor in Alaska’s mining industry. This involves significant fixed capital investments made over decades that are unlikely to shift dramatically in the short-run. Alaska’s Legislature just passed a bill HJR-11 with an approval vote of 33-4 titled, Recognizing and honoring the relationship between Canada and Alaska. It highlights the deeply interconnected friendship between Alaska and Canada culturally, economically, and militarily.”

    According to the US Bureau of Labor Statistics, the Consumer Price Index (“CPI”) for the U.S. increased 2.7% between June of 2024 and June of 2025. In Alaska, the rate of CPI increase was lower at 1.6% for the same time period.   Food and beverage, housing costs, and medical care costs were the largest causes for inflation. Declining motor fuel prices, transportation, recreation and household furnishing costs have helped moderate inflationary pressures in Alaska.

    The monthly average price of Alaska North Slope (“ANS”) crude oil has ranged between $76.39 a barrel in January of 2025 and $67.07 in May of the prior year. The June 2025 average was $72.62. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 461 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2024.   Production rose to 469 thousand bpd in fiscal year ending June 30, 2025.   In the Spring 2025 Revenue Forecast published March 12, 2025, the DOR expects production to continue to grow to 663 thousand bpd by fiscal year 2034. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay. A partnership between Santos and Repsol is constructing the new Pikka field and ConocoPhillips is developing the large new Willow field. There are also a number of smaller new fields in the ANS that are contributing to the State of Alaska’s production growth estimates.

    The Alaska Permanent Fund is seeded annually by the oil wealth the State continues to save each year and has grown significantly over 40 years of successful investment. As of May 31, 2025 the fund’s value was $83.13 billion. According to the DOR it is scheduled to contribute $3.7 billion to Alaska General Fund in fiscal year 2025 for general government spending and to pay the annual dividend to Alaskan residents.

    According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 6.2% in 2024 to $510,064, following a 5.2% increase in 2023. This was the seventh consecutive year of price increases. Through June of 2025 prices have continued to increase on average 2.6% to $523,059.

    The average sales price for single family homes in the Matanuska Susitna Borough rose 3.8% in 2024 to $412,859, after increasing 4% in 2023. This continues a trend of average price increases for more than a decade in the region. Through June of 2025 prices have continued to increase on average 6.9% to $441,463. These two markets represent where the vast majority of the Bank’s residential lending activity occurs.

    The Alaska Multiple Listing Services reported a 3.4% increase in the number of units sold in Anchorage when comparing 2024 to 2023. The first six months of 2025 has seen a 4.8% increase in home sales compared to the first half of 2024 in Anchorage.  

    There was virtually no change in the number of homes sold in the Matanuska Susitna Borough, with only four fewer homes sold in 2024 than in 2023 or -0.2%. In the first six months of 2025 the number of units sold has increased 13.1% in the Matanuska Susitna Borough compared to the first half of 2024.

    Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.

    Review of Income Statement

    Consolidated Income Statement

    In the second quarter of 2025, Northrim generated a ROAA of 1.48% and a ROAE of 16.37%, compared to 1.76% and 19.70%, respectively, in the first quarter of 2025 and 1.31% and 14.84%, respectively, in the second quarter a year ago.

    Net Interest Income/Net Interest Margin

    Net interest income increased 7% to $33.6 million in the first quarter of 2025 compared to $31.3 million in the first quarter of 2025 and increased 24% compared to $27.1 million in the second quarter of 2024.   Interest expense on deposits increased to $10.3 million in the second quarter of 2025 compared to $9.9 million in the first quarter of 2025 and compared to $9.5 million in the second quarter of 2024.

    NIMTE* was 4.72% in the second quarter of 2025 up from 4.61% in the preceding quarter and 4.30% in the second quarter a year ago. NIMTE* increased 42 basis points in the second quarter of 2025 compared to the second quarter of 2024 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, higher yields on those assets as variable rate loans reset at higher rates which were only partially offset by an increase in borrowings. The weighted average interest rate for new loans booked in the second quarter of 2025 was 7.27% compared to 7.30% in the first quarter of 2025 and 7.90% in the second quarter a year ago. The yield on the investment portfolio in the second quarter of 2025 increased to 3.07% from 2.97% in the first quarter of 2025 and 2.82% in the second quarter of 2024. “We are continuing to see some benefits from the repricing of our loan portfolio and new production increasing our margin” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE* continues to remain above the peer average of 3.26% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of March 31, 2025.

    Provision for Credit Losses

    Northrim recorded a provision for credit losses of $2.0 million in the second quarter of 2025, which was comprised of a provision for credit losses on loans of $1.8 million, a $157,000 provision for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $18,000. This compares to a benefit to the provision for credit losses of $1.4 million in the first quarter of 2025, which was comprised of a benefit to the provision for credit losses on loans of $1.1 million, a $322,000 benefit for credit losses on unfunded commitments, and a provision for credit losses on purchased receivables of $46,000. In the second quarter a year ago, Northrim recorded a benefit to the provision for credit losses of $120,000 which was comprised of a $134,000 provision for credit losses on loans and a $254,000 benefit to the provision for credit losses on unfunded commitments.

    The increase to the provision for credit losses on loans in the second quarter of 2025 as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances as well as an increase in estimated loss rates due to less favorable economic forecasts and trends in qualitative factors. The increase to the provision for unfunded commitments in the second quarter of 2025 was primarily due to an increase in estimated loss rates which was only partially offset by changes in mix of unfunded commitments.

    Nonperforming assets, net of government guarantees, decreased during the quarter to $11.9 million at June 30, 2025, compared to $12.3 million at March 31, 2025, and increased compared to $5.1 million at June 30, 2024. The increase in nonperforming assets, net of government guarantees at June 30, 2025 compared to June 30, 2024 is primarily the result of the acquisition of Sallyport in the fourth quarter of 2024.

    The allowance for credit losses on loans was 290% of nonperforming loans, net of government guarantees, at the end of the second quarter of 2025, compared to 262% three months earlier and 365% a year ago.

    Other Operating Income

    In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $16.6 million, or 33% of total second quarter 2025 revenues, as compared to $13.0 million, or 29% of revenues in the first quarter of 2025, and $9.6 million, or 26% of revenues in the second quarter of 2024. The increase in other operating income in the second quarter of 2025 as compared to the second quarter of 2024 was primarily the result of increased purchased receivable income due to the Company’s acquisition of Sallyport on October 31, 2024. Mortgage banking income in the second quarter of 2025 increased as compared to the first quarter of 2025 and second quarter of 2024 due to a higher volume of mortgage activity. See further discussion regarding mortgage activity contained under “Home Mortgage Lending” below.  

    Other Operating Expenses

    Operating expenses were $32.5 million in the second quarter of 2025, compared to $28.2 million in the first quarter of 2025, and $25.2 million in the second quarter of 2024. The increase in other operating expenses in the second quarter of 2025 compared to the first quarter of 2025 was primarily due to an increase in salaries and other personnel expense, including $980,000 in higher mortgage commissions expense due to higher mortgage volume, $763,000 in higher salary expense, a $760,000 increase in group medical expenses, and increases in profit share expense and payroll taxes. Additionally, marketing expense increased due to timing of annual charitable contributions. The increase in total other operating expenses in the second quarter of 2025 compared to the second quarter a year ago was primarily due to an increase in salaries and other personnel expense, the increase in compensation expense for Sallyport acquisition payments, and an increase in data processing expense. Total other operating expense increased $2.1 million in the Specialty Finance segment in the second quarter of 2025 compared to the second quarter of 2024 due to the acquisition of Sallyport on October 31, 2024.

    Income Tax Provision

    In the second quarter of 2025, Northrim recorded $4.0 million in state and federal income tax expense for an effective tax rate of 25.3%, compared to $4.3 million, or 24.2% in the first quarter of 2025 and $2.5 million, or 21.9% in the second quarter a year ago. The increase in the tax rate in the second quarter of 2025 as compared to the first quarter of 2025 and second quarter of 2024 is primarily the result of a decrease in tax credits and tax exempt interest income as a percentage of pre-tax income in 2025 as compared to 2024.

    Community Banking

    Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as ‘distressed or underserved non-metropolitan middle-income geographies’.

    Net interest income in the Community Banking segment totaled $30.0 million in the second quarter of 2025, compared to $28.2 million in the first quarter of 2025 and $24.3 million in the second quarter of 2024. Net interest income increased $5.7 million or 23% in the second quarter of 2025 as compared to the second quarter of 2024 mostly due to higher interest income on loans. This increase was only partially offset by lower interest income on investments and higher interest expense on deposits and borrowings.

    The provision for credit losses in the Community Banking segment was $1.3 million in the second quarter of 2025 compared to a benefit to the provision for credit losses of $1.8 million in the first quarter of 2025 and a benefit to the provision for credit losses of $184,000 in the same quarter a year ago. The increase to the provision for credit losses in the Community Banking segment in the second quarter of 2025 as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances as well as an increase in estimated loss rates due to less favorable economic forecasts and trends in qualitative factors. In the first quarter of 2025, the Company recorded a net benefit for credit losses in the Community Banking segment primarily due to changes in the Company’s loss rate regression models for commercial, commercial real estate, and construction loans. These decreases in the provision were only partially offset by increases in estimated loss rates for management’s assessment of economic conditions and an increase for higher loan balances.

    Other operating expenses in the Community Banking segment totaled $21.8 million in the second quarter of 2025, up $3.2 million or 17% from $18.6 million in the first quarter of 2025, and up $3.7 million or 20% from $18.1 million in the second quarter a year ago. The increase in the second quarter of 2025 as compared to the prior quarter and compared to the same quarter a year ago was primarily due to increases in salaries and other personnel expense, including $667,000 in higher salary expense, an $873,000 increase in group medical expenses, as well as increases in profit share expense and payroll taxes. Additionally, marketing expense increased due to timing of annual charitable contributions.

    The following tables provide highlights of the Community Banking segment of Northrim:

      Three Months Ended
    (Dollars in thousands, except per share data) June 30, 2025 March 31, 2025 December 31,
    2024
    September 30,
    2024
    June 30, 2024
    Net interest income $ 29,971 $ 28,151   $ 27,643 $ 25,928 $ 24,318  
    (Benefit) provision for credit losses   1,319   (1,768 )   771   1,492   (184 )
    Other operating income   3,268   2,703     2,535   3,507   2,451  
    Other operating expense   21,764   18,581     19,116   18,723   18,069  
    Income before provision for income taxes   10,156   14,041     10,291   9,220   8,884  
    Provision for income taxes   2,413   3,253     1,474   2,133   1,786  
    Net income $ 7,743 $ 10,788   $ 8,817 $ 7,087 $ 7,098  
    Weighted average shares outstanding, diluted   5,611,558   5,608,102     5,597,889   5,583,055   5,558,580  
    Diluted earnings per share attributable to Community Banking $ 1.37 $ 1.93   $ 1.58 $ 1.26 $ 1.27  
      Year-to-date
    (Dollars in thousands, except per share data) June 30, 2025 June 30, 2024
    Net interest income $ 58,122   $ 48,533
    (Benefit) provision for credit losses   (449 )   13
    Other operating income   5,971     4,919
    Other operating expense   40,345     35,247
    Income before provision for income taxes   24,197     18,192
    Provision for income taxes   5,666     3,752
    Net income Community Banking segment $ 18,531   $ 14,440
    Weighted average shares outstanding, diluted   5,611,734     5,562,025
    Diluted earnings per share $ 3.30   $ 2.59


    Home Mortgage Lending

    During the second quarter of 2025, mortgage loans funded for sale were $249.7 million, compared to $108.5 million in the first quarter of 2025, and $152.3 million in the second quarter of 2024.

    During the second quarter of 2025, the Bank purchased loans of $27.5 million from its subsidiary, Residential Mortgage, of which approximately half were jumbos, one-quarter were mortgages for second homes, and one-quarter were adjustable rate mortgages, with a weighted average interest rate of 6.71%, as compared to $13.1 million and 6.39% in the first quarter of 2025, and $29.2 million and 6.82% in the second quarter of 2024. Net interest income contributed $3.5 million to total Home Mortgage Lending revenue in the second quarter of 2025, up from $3.0 million in the prior quarter, and up from $2.8 million in the second quarter a year ago.

    The Company reclassified $100 million in consumer mortgages held for investment to held for sale in the first quarter of 2025 and recorded unrealized losses of $1.2 million related to this portfolio in the first quarter of 2025. In the second quarter of 2025, the Company sold $61 million of the $100 million that was reclassified to loans held for sale in the first quarter of 2025 for a total realized loss of $545,000.

    The Arizona, Colorado, and Pacific Northwest mortgage expansion markets were responsible for 22% of Residential Mortgage’s $216 million total production in the second quarter of 2025 (excluding the $61 million in mortgages sold noted above), 20% of $122 million total production in the first quarter of 2025, and 22% of $182 million total production in the second quarter of 2024.

    The provision for credit losses in the Home Mortgage Lending segment was $639,000 in the second quarter of 2025 compared to a benefit to the provision for credit losses of $307,000 in the first quarter of 2025 and a provision for credit loses of $64,000 in the second quarter of 2024. The increase in the provision for credit losses in the second quarter of 2025 in the Home Mortgage Lending segment as compared to the prior quarter and the same quarter a year ago was primarily a result of increased loan balances. The benefit to the provision for loan losses in the Home Mortgage Lending segment in the first quarter of 2025 was primarily the result of the reclassification of $100 million in mortgage loans to loans held for sale, which was only partially offset by an increase in the provision for loan losses due to changes in the Company’s loss rate regression models for home mortgage loans.

    The net change in fair value of mortgage servicing rights decreased mortgage banking income by $818,000 during the second quarter of 2025 compared to a decrease of $855,000 for the first quarter of 2025 and a decrease of $81,000 for the second quarter of 2024. Mortgage servicing revenue increased to $3.0 million in the second quarter of 2025 from $2.7 million in the prior quarter and increased from $2.2 million in the second quarter of 2024 due to an increase in production of Alaska Housing Finance Corporation (AHFC) mortgages, which contribute to servicing revenues at origination. In the second quarter of 2025, the Company’s servicing portfolio increased $69.3 million compared to a $24.0 million increase in the first quarter of 2025, and an increase of $41.8 million in the second quarter of 2024.

    As of June 30, 2025, Northrim serviced 6,458 loans in its $1.55 billion home-mortgage-servicing portfolio, a 5% increase compared to the $1.48 billion serviced as of the end of the first quarter of 2025, and a 41% increase from the $1.10 billion serviced a year ago.

    The following tables provide highlights of the Home Mortgage Lending segment of Northrim:

      Three Months Ended
    (Dollars in thousands, except per share data) June 30,
    2025
    March 31,
    2025
    December 31,
    2024
    September 30,
    2024
    June 30,
    2024
    Mortgage commitments $ 73,198   $ 68,258   $ 32,299   $ 77,591   $ 88,006  
               
    Mortgage loans funded for sale $ 249,680   $ 108,499   $ 162,530   $ 209,960   $ 152,339  
    Mortgage loans funded for investment   27,455     13,061     23,380     38,087     29,175  
    Total mortgage loans funded $ 277,135   $ 121,560   $ 185,910   $ 248,047   $ 181,514  
    Mortgage loan refinances to total fundings   10 %   11 %   11 %   6 %   6 %
    Mortgage loans serviced for others $ 1,553,987   $ 1,484,714   $ 1,460,720   $ 1,166,585   $ 1,101,800  
               
    Net realized and unrealized gains on mortgage loans sold and held for sale $ 5,091   $ 1,580   $ 3,747   $ 5,079   $ 3,189  
    Change in fair value of mortgage loan commitments, net   (110 )   660     (665 )   60     390  
    Total production revenue   4,981     2,240     3,082     5,139     3,579  
    Mortgage servicing revenue   2,957     2,696     2,847     2,583     2,164  
    Change in fair value of mortgage servicing rights:          
    Due to changes in model inputs of assumptions1   (355 )   (322 )   1,372     (566 )   239  
    Other2   (463 )   (533 )   (499 )   (402 )   (320 )
    Total mortgage servicing revenue, net   2,139     1,841     3,720     1,615     2,083  
    Other mortgage banking revenue   280     170     238     293     222  
    Total mortgage banking income $ 7,400   $ 4,251   $ 7,040   $ 7,047   $ 5,884  
               
    Net interest income $ 3,507   $ 3,046   $ 3,280   $ 2,941   $ 2,775  
    Provision (benefit) for credit losses   639     (307 )   305     571     64  
    Mortgage banking income   7,400     4,251     7,040     7,047     5,884  
    Other operating expense   7,593     6,490     7,198     7,643     6,697  
    Income before provision for income taxes   2,675     1,114     2,817     1,774     1,898  
    Provision for income taxes   746     310     842     497     532  
    Net income $ 1,929   $ 804   $ 1,975   $ 1,277   $ 1,366  
               
    Weighted average shares outstanding, diluted   5,611,558     5,608,102     5,597,889     5,583,055     5,558,580  
    Diluted earnings per share attributable to Home Mortgage Lending $ 0.34   $ 0.14   $ 0.35   $ 0.23   $ 0.25  

    1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.

      Year-to-date
    (Dollars in thousands, except per share data) June 30, 2025 June 30, 2024
    Mortgage loans funded for sale $ 358,179   $ 236,663  
    Mortgage loans funded for investment   40,516     46,578  
    Total mortgage loans funded $ 398,695   $ 283,241  
    Mortgage loan refinances to total fundings   10 %   6 %
         
    Net realized and unrealized gains on mortgage loans sold and held for sale $ 6,671   $ 5,168  
    Change in fair value of mortgage loan commitments, net   550     777  
    Total production revenue   7,221     5,945  
    Mortgage servicing revenue   5,653     3,725  
    Change in fair value of mortgage servicing rights:    
    Due to changes in model inputs of assumptions1   (677 )   528  
    Other2   (996 )   (634 )
    Total mortgage servicing revenue, net   3,980     3,619  
    Other mortgage banking revenue   450     351  
    Total mortgage banking income $ 11,651   $ 9,915  
         
    Net interest income $ 6,553   $ 5,007  
    Provision for credit losses   332     16  
    Mortgage banking income   11,651     9,915  
    Other operating expense   14,083     12,783  
    Income before provision for income taxes   3,789     2,123  
    Provision for income taxes   1,056     595  
    Net income Home Mortgage Lending segment $ 2,733   $ 1,528  
         
    Weighted average shares outstanding, diluted   5,611,734     5,562,025  
    Diluted earnings per share $ 0.48   $ 0.28  

    1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.

    Specialty Finance

    The Company’s Specialty Finance segment includes Northrim Funding Services and Sallyport. Northrim Funding Services is a division of the Bank and has offered factoring solutions to small businesses since 2004. Sallyport is a leading provider of factoring, asset-based lending and alternative working capital solutions to small and medium sized enterprises in the United States, Canada, and the United Kingdom that the Company acquired on October 31, 2024 in an all cash transaction valued at approximately $53.9 million. The composition of revenues for the Specialty Finance segment are primarily purchased receivable income, but also includes interest income from loans and other fee income.

    The acquisition of Sallyport included $1.1 million in one-time deal related costs which are reflected in other operating expenses for the fourth quarter of 2024 in the tables below. Total pre-tax income for Sallyport for the second quarter of 2025 was $1.3 million compared to $1.3 million in the first quarter of 2025 and $945,000 for the two months of operations in the fourth quarter of 2024, excluding transaction costs.

    Average purchased receivables and loan balances at Sallyport were $71.0 million for the second quarter of 2025 with a yield of 27.23% compared to average balances of $59.9 million for the first quarter of 2025 and a yield of 35.8%. The yield in the first quarter of 2025 included the recognition of $899,000 in nonaccrual fee income collected during the quarter related to two nonperforming receivables and the collection of a $350,000 line termination fee. The yield excluding these items for the first quarter of 2025 was 27.4%.

    The following tables provide highlights of the Specialty Finance segment of Northrim:

      Three Months Ended
    (Dollars in thousands, except per share data) June 30,
    2025
    March 31,
    2025
    December 31,
    2024
    September 30,
    2024
    June 30,
    2024
    Purchased receivable income $ 5,897 $ 6,150   $ 3,526   $ 1,033 $ 1,242
    Other operating income   75   (64 )   (68 )    
    Interest income   782   596     407     158   170
    Total revenue   6,754   6,682     3,865     1,191   1,412
    Provision for credit losses   18   666     125      
    Compensation expense – SCF acquisition payments   600   600          
    Other operating expense   2,531   2,500     3,063     362   428
    Interest expense   668   496     489     185   210
    Total expense   3,817   4,262     3,677     547   638
    Income before provision for income taxes   2,937   2,420     188     644   774
    Provision for income taxes   831   688     53     183   218
    Net income Specialty Finance segment $ 2,106 $ 1,732   $ 135   $ 461 $ 556
    Weighted average shares outstanding, diluted   5,611,558   5,608,102     5,597,889     5,583,055   5,558,580
    Diluted earnings per share attributable to Specialty Finance $ 0.38 $ 0.31   $ 0.02   $ 0.08 $ 0.10
      Year-to-date
    (Dollars in thousands, except per share data) June 30, 2025 June 30, 2024
    Purchased receivable income $ 12,047 $ 2,587
    Other operating income   11  
    Interest income   1,378   382
    Total revenue   13,436   2,969
    Provision for credit losses   684  
    Compensation expense – SCF acquisition payments   1,200  
    Other operating expense   5,031   802
    Interest expense   1,164   422
    Total expense   8,079   1,224
    Income before provision for income taxes   5,357   1,745
    Provision for income taxes   1,519   494
    Net income Specialty Finance segment $ 3,838 $ 1,251
    Weighted average shares outstanding, diluted   5,611,734   5,562,025
    Diluted earnings per share $ 0.69 $ 0.23


    Balance Sheet Review

    Northrim’s total assets were $3.24 billion at June 30, 2025, up 3% from the preceding quarter and up 15% from a year ago. Northrim’s loan-to-deposit ratio was 78% at June 30, 2025, up from 76% at both March 31, 2025 and June 30, 2024.

    At June 30, 2025, liquid assets, investments, and loans maturing within one year were $1.15 billion and our funds available for borrowing under our existing lines of credit were $507.9 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.

    Average interest-earning assets were $2.89 billion in the second quarter of 2025, up 4% from $2.78 billion in the first quarter of 2025 and up 12% from $2.57 billion in the second quarter a year ago. The average yield on interest-earning assets was 6.27% in the second quarter of 2025, up from 6.10% in the preceding quarter and up from 5.83% in the second quarter of 2024.

    Average investment securities decreased to $515.9 million in the second quarter of 2025, compared to $523.8 million in the first quarter of 2025 and $640.0 million in the second quarter a year ago. The average net tax equivalent yield on the securities portfolio was 3.07% for the second quarter of 2025, up from 2.97% in the preceding quarter and up from 2.82% in the year ago quarter. The average estimated duration of the investment portfolio at June 30, 2025, was approximately 2.4 years compared to approximately 2.5 years at June 30, 2024. As of June 30, 2025, $55.7 million of available for sale securities with a weighted average yield of 1.40% are scheduled to mature in the next six months, $106.8 million with a weighted average yield of 1.28% are scheduled to mature in six months to one year, and $145.0 million with a weighted average yield of 1.96% are scheduled to mature in the following year, representing a total of $307.5 million or 11% of earning assets that are scheduled to mature in the next 24 months.

    Total unrealized losses, net of tax, on available for sale securities decreased by $1.9 million in the second quarter of 2025 resulting in total unrealized loss, net of tax, of $3.6 million compared to $5.5 million at March 31, 2025, and $15.2 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.3 years. Total unrealized losses on held to maturity securities were $711,000 at June 30, 2025, compared to $1.1 million at March 31, 2025, and $3.0 million a year ago.

    Average interest bearing deposits in other banks decreased to $27.2 million in the second quarter of 2025 from $38.0 million in the first quarter of 2025 and increased from $17.4 million in the second quarter of 2024, as cash was used to fund loan growth and provide liquidity.

    Loans held for sale decreased to $127.1 million at June 30, 2025, compared to $159.6 million at March 31, 2025, largely due to the sale of $61 million consumer mortgage loans in the second quarter of 2025 that had been reclassified to loans held for sale from portfolio loans in the first quarter of 2025, and increased from $85.9 million a year ago, due to higher loan production by Residential Mortgage.

    Portfolio loans were $2.20 billion at June 30, 2025, up 4% from the preceding quarter and up 17% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $2.00 billion at June 30, 2025, up $59.1 million or 3% from the preceding quarter and up 21% from a year ago. This increase in the second quarter of 2025 was diversified throughout the loan portfolio including consumer mortgage loans increasing by $19 million, construction loans increasing by $31.2 million, commercial real estate owner-occupied loans increasing $17.1 million, and nonowner-occupied commercial real estate and multi-family loans increasing by $6.5 million from the preceding quarter. These increases were partially offset by a $3.8 million decrease in commercial loans. Average portfolio loans in the second quarter of 2025 were $2.17 billion, which was consistent with the preceding quarter after the sale of $61 million in consumer mortgage loans, and up 18% from a year ago. Yields on average portfolio loans in the second quarter of 2025 increased to 6.99% from 6.89% in the first quarter and increased from 6.87% in the second quarter of 2024. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.45% in the second quarter of 2025 as compared to 7.43% in the first quarter of 2025 and 8.26% in the second quarter of 2024.

    Northrim’s loans and credit lines are subject to approval procedures and amount limitations. These limitations apply to the borrower’s total outstanding indebtedness and commitments to us, including the indebtedness of any guarantor. Generally, Northrim is permitted to make loans to one borrower of up to 15% of the unimpaired capital and surplus of the Bank. The legal lending limit was $39.4 million at June 30, 2025. At June 30, 2025, Northrim had 22 relationships totaling $504.0 million in portfolio loans whose total direct and indirect commitments were greater than 50% of the legal lending limit.

    Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.81 billion at June 30, 2025, up 1% from $2.78 billion at March 31, 2025, and up 14% from $2.46 billion a year ago. “The increase in deposits in the second quarter of 2025 was consistent with our customers’ normal business cycles which typically result in increases in deposit balances in the second and third quarters and decreases in the first and fourth quarters,” said Ballard. At June 30, 2025, 75% of total deposits were held in business accounts and 25% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $60,000 as of June 30, 2025. Northrim had 27 customers with balances over $10 million as of June 30, 2025, which accounted for $731.1 million, or 27%, of total deposits. Demand deposits increased by 5% from the prior quarter and increased 10% from the prior year to $777.9 million at June 30, 2025. Demand deposits were 28% of total deposits at June 30, 2025 up from 27% at March 31, 2025 and were down from 29% of total deposits at June 30, 2024. Average interest-bearing deposits were up 1% to $2.03 billion with an average cost of 2.04% in the second quarter of 2025, compared to $2.00 billion and an average cost of 2.01% in the first quarter of 2025, and up 18% compared to $1.73 billion and an average cost of 2.21% in the second quarter of 2024. Uninsured deposits totaled $1.02 billion or 36% of total deposits as of June 30, 2025 compared to $1.08 billion or 40% of total deposits as of December 31, 2024.

    Shareholders’ equity was $290.2 million, or $52.55 book value per share, at June 30, 2025, compared to $279.8 million, or $50.67 book value per share, at March 31, 2025 and $247.2 million, or $44.93 book value per share, a year ago. Tangible book value per share* was $43.35 at June 30, 2025, compared to $41.47 at March 31, 2025, and $42.03 per share a year ago. The increase in shareholders’ equity in the second quarter of 2025 as compared to the first quarter of 2025 was largely the result of earnings of $11.8 million and an increase in the fair value of the available for sale securities portfolio, which increased $1.9 million, net of tax, which were only partially offset by dividends paid of $3.6 million. The Company did not repurchase any shares of common stock in the second quarter of 2025 and currently has no plans to repurchase shares this year. Tangible common equity to tangible assets* was 7.50% as of June 30, 2025, compared to 7.41% as of March 31, 2025 and 8.24% as of June 30, 2024. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 9.80% at June 30, 2025, compared to 9.76% at March 31, 2025, and 11.68% at June 30, 2024.

    Asset Quality

    Northrim believes it has a consistent lending approach throughout economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management.

    Nonperforming assets (“NPAs”) net of government guarantees were $11.9 million at June 30, 2025, down from $12.3 million at March 31, 2025 and up from $5.1 million a year ago. Of the NPAs at June 30, 2025, $4.2 million are attributable to the Community Banking segment and $7.5 million are attributable to the Specialty Finance segment.

    Net adversely classified loans were $35.8 million at June 30, 2025, as compared to $20.4 million at March 31, 2025, and $7.1 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. The increase in adversely classified loans, net of government guarantees, at June 30, 2025 as compared to the prior quarter is mostly attributable to two commercial relationships totaling $16.0 million. Net loan charge-offs were $140,000 in the second quarter of 2025, compared to net loan recoveries of $34,000 in the first quarter of 2025, and net loan recoveries of $26,000 in the second quarter of 2024. Additionally, Northrim had 13 loan modifications to borrowers experiencing financial difficulty totaling $3.3 million, net of government guarantees that had been modified in the last twelve months as of June 30, 2025.

    Northrim had $141.2 million, or 6% of portfolio loans, in the Healthcare sector, $127.2 million, or 6% of portfolio loans, in the Tourism sector, $121.0 million, or 5% of portfolio loans, in the Accommodations sector, $93.4 million, or 4% of portfolio loans, in the Retail sector, $84.2 million, or 4% of portfolio loans, in the Aviation (non-tourism) sector, $76.2 million, or 3% of portfolio loans, in the Fishing sector, and $59.5 million, or 3% in the Restaurants and Breweries sector as of June 30, 2025.

    Northrim estimates that $105.9 million, or approximately 5% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of June 30, 2025, and $1.5 million of these loans are adversely classified. As of June 30, 2025, Northrim has an additional $76.9 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and no unfunded commitments on adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.

    About Northrim BanCorp

    Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches throughout the state and differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. The Bank has two wholly-owned subsidiaries, Sallyport Commercial Finance, LLC, a specialty finance company and Residential Mortgage Holding Company, LLC, a regional home mortgage company. Pacific Wealth Advisors, LLC is an affiliated company.

    www.northrim.com

    Forward-Looking Statement

    This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: descriptions of Northrim’s and Sallyport’s financial condition, results of operations, asset based lending volumes, asset and credit quality trends and profitability and statements about the expected financial benefits and other effects of the acquisition of Sallyport by Northrim Bank; expected cost savings, synergies and other financial benefits from the acquisition of Sallyport by Northrim Bank might not be realized within the expected time frames and costs or difficulties relating to integration matters might be greater than expected; the ability of Northrim and Sallyport to execute their respective business plans; potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives, including tariffs, on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; potential further increases in inflation, supply-chain constraints, and potential geopolitical instability, including the war in Ukraine and the conflict in the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our allowance for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward-looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.
    References:

    https://www.bea.gov/

    http://almis.labor.state.ak.us/

    http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx

    http://www.tax.state.ak.us/

    https://www.bls.gov/regions/west/news-release/consumerpriceindex_anchorage.htm

    https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx

    https://www.akleg.gov/basis/Bill/Text/34?Hsid=HJR011C

    https://www.trade.gov/data-visualization/tradestats-express-trade-partner-state

    https://tax.alaska.gov/programs/programs/reports/RSB.aspx?Year=2025&Type=Spring

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    https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials

    Contact: Mike Huston, President, CEO, and COO
      (907) 261-8750
      Jed Ballard, Chief Financial Officer
      (907) 261-3539
       
    Income Statement            
    (Dollars in thousands, except per share data) Three Months Ended   Year-to-date
    (Unaudited) June 30, March 31, June 30,   June 30, June 30,
        2025   2025     2024       2025   2024  
    Interest Income:            
    Interest and fees on loans $ 40,519 $ 37,470   $ 32,367     $ 77,989 $ 62,817  
    Interest on portfolio investments   3,765   3,675     4,310       7,440   8,830  
    Interest on deposits in banks   515   416     232       931   1,070  
    Total interest income   44,799   41,561     36,909       86,360   72,717  
    Interest Expense:            
    Interest expense on deposits   10,304   9,935     9,476       20,239   18,656  
    Interest expense on borrowings   903   329     380       1,232   561  
    Total interest expense   11,207   10,264     9,856       21,471   19,217  
    Net interest income   33,592   31,297     27,053       64,889   53,500  
                 
    Provision (benefit) for credit losses   1,976   (1,409 )   (120 )     567   29  
    Net interest income after provision for credit losses   31,616   32,706     27,173       64,322   53,471  
                 
    Other Operating Income:            
    Mortgage banking income   7,400   4,251     5,884       11,651   9,915  
    Purchased receivable income   5,897   6,100     1,242       12,047   2,587  
    Bankcard fees   1,153   1,074     1,105       2,227   2,022  
    Service charges on deposit accounts   726   677     572       1,403   1,121  
    Unrealized gain (loss) on marketable equity securities   78   (50 )   (60 )     28   254  
    Other income   1,386   988     834       2,324   1,522  
    Total other operating income   16,640   13,040     9,577       29,680   17,421  
                 
    Other Operating Expense:            
    Salaries and other personnel expense   20,854   17,223     16,627       38,077   32,044  
    Data processing expense   3,366   3,104     2,601       6,470   5,260  
    Occupancy expense   2,104   1,889     1,843       3,993   3,805  
    Professional and outside services   1,113   1,115     726       2,228   1,481  
    Marketing expense   1,042   672     690       1,714   1,203  
    Insurance expense   756   1,017     692       1,773   1,471  
    Compensation expense – SCF acquisition payments   600   600           1,200    
    OREO expense, net rental income and gains on sale   2   3     2       5   (389 )
    Other expense   2,651   2,548     2,013       5,199   3,957  
    Total other operating expense   32,488   28,171     25,194       60,659   48,832  
                 
    Income before provision for income taxes   15,768   17,575     11,556       33,343   22,060  
    Provision for income taxes   3,990   4,251     2,536       8,241   4,841  
    Net income $ 11,778 $ 13,324   $ 9,020     $ 25,102 $ 17,219  
                 
    Basic EPS $ 2.13 $ 2.41   $ 1.64     $ 4.54 $ 3.13  
    Diluted EPS $ 2.09 $ 2.38   $ 1.62     $ 4.47 $ 3.10  
    Weighted average shares outstanding, basic   5,521,811   5,519,998     5,500,588       5,520,905   5,500,083  
    Weighted average shares outstanding, diluted   5,611,558   5,608,102     5,558,580       5,611,734   5,562,025  
    Balance Sheet      
    (Dollars in thousands)      
    (Unaudited) June 30, March 31, June 30,
        2025     2025     2024  
           
    Assets:      
    Cash and due from banks $ 43,734   $ 29,671   $ 33,364  
    Interest bearing deposits in other banks   97,549     35,852     21,058  
    Investment securities available for sale, at fair value   429,421     463,096     584,964  
    Investment securities held to maturity   36,750     36,750     36,750  
    Marketable equity securities, at fair value   8,747     8,669     12,381  
    Investment in Federal Home Loan Bank stock   8,343     5,342     4,929  
    Loans held for sale   127,116     159,603     85,926  
           
    Portfolio loans   2,202,115     2,124,330     1,875,907  
    Allowance for credit losses, loans   (22,585 )   (20,922 )   (17,694 )
    Net portfolio loans   2,179,530     2,103,408     1,858,213  
    Purchased receivables, net   109,098     95,489     25,722  
    Mortgage servicing rights, at fair value   27,506     26,814     21,077  
    Other real estate owned, net            
    Premises and equipment, net   36,501     37,070     40,393  
    Lease right of use asset   7,033     7,632     8,244  
    Goodwill and intangible assets   50,824     50,824     15,967  
    Other assets   81,608     80,740     72,680  
    Total assets $ 3,243,760   $ 3,140,960   $ 2,821,668  
           
    Liabilities:      
    Demand deposits $ 777,948   $ 742,560   $ 704,471  
    Interest-bearing demand   1,196,048     1,187,465     906,010  
    Savings deposits   248,141     256,650     238,156  
    Money market deposits   196,166     193,842     195,159  
    Time deposits   390,867     397,460     420,010  
    Total deposits   2,809,170     2,777,977     2,463,806  
    Other borrowings   63,026     13,136     43,961  
    Junior subordinated debentures   10,310     10,310     10,310  
    Lease liability   7,077     7,682     8,269  
    Other liabilities   63,958     52,099     48,122  
    Total liabilities   2,953,541     2,861,204     2,574,468  
           
    Shareholders’ Equity:      
    Total shareholders’ equity   290,219     279,756     247,200  
    Total liabilities and shareholders’ equity $ 3,243,760   $ 3,140,960   $ 2,821,668  
           

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Composition of Portfolio Loans                        
      June 30, 2025   March 31, 2025   December 31,
    2024
      September 30,
    2024
      June 30, 2024
      Balance % of
    total
      Balance % of
    total
      Balance % of
    total
      Balance % of
    total
      Balance % of
    total
    Commercial loans $ 569,753   27 %   $ 573,593   27 %   $ 518,148   24 %   $ 492,414   24 %   $ 495,781   26 %
    Commercial real estate:                            
    Owner occupied properties   447,561   20 %     430,442   20 %     420,060   20 %     412,827   20 %     383,832   20 %
    Nonowner occupied and                            
    multifamily properties   696,766   31 %     690,277   32 %     619,431   29 %     584,302   31 %     551,130   30 %
    Residential real estate:                            
    1-4 family properties                            
    secured by first liens   206,905   9 %     188,219   9 %     270,535   13 %     248,514   12 %     222,026   12 %
    1-4 family properties                            
    secured by junior liens &                            
    revolving secured by first liens   60,118   3 %     53,836   3 %     48,857   2 %     45,262   2 %     41,258   2 %
    1-4 family construction   36,005   2 %     34,017   2 %     39,789   2 %     39,794   2 %     29,510   2 %
    Construction loans   187,442   8 %     156,211   7 %     214,068   10 %     185,362   9 %     154,009   8 %
    Consumer loans   7,570   %     7,424   %     7,562   %     7,836   %     6,679   %
    Subtotal   2,212,120         2,134,019         2,138,450         2,016,311         1,884,225    
    Unearned loan fees, net   (10,005 )       (9,689 )       (9,187 )       (8,746 )       (8,318 )  
    Total portfolio loans $ 2,202,115       $ 2,124,330       $ 2,129,263       $ 2,007,565       $ 1,875,907    
                                 
    Composition of Deposits                        
      June 30, 2025   March 31, 2025   December 31,
    2024
      September 30,
    2024
      June 30, 2024
      Balance % of total   Balance % of total   Balance % of total   Balance % of total   Balance % of total
    Demand deposits $ 777,948 28 %   $ 742,560 27 %   $ 706,225 27 %   $ 763,595 29 %   $ 704,471 29 %
    Interest-bearing demand   1,196,048 42 %     1,187,465 43 %     1,108,404 41 %     979,238 37 %     906,010 36 %
    Savings deposits   248,141 9 %     256,650 9 %     250,900 9 %     245,043 9 %     238,156 10 %
    Money market deposits   196,166 7 %     193,842 7 %     196,290 7 %     204,821 8 %     195,159 8 %
    Time deposits   390,867 14 %     397,460 14 %     418,370 16 %     435,870 17 %     420,010 17 %
    Total deposits $ 2,809,170     $ 2,777,977     $ 2,680,189     $ 2,628,567     $ 2,463,806  


    Additional Financial Information

    (Dollars in thousands)
    (Unaudited)

    Asset Quality June 30,   March 31,   June 30,  
        2025     2025     2024  
    Nonaccrual loans – Community Banking $ 4,180   $ 4,274   $ 4,233  
    Nonaccrual loans – Home Mortgage Lending   197     221     253  
    Nonaccrual loans – Specialty Finance   3,484     3,573     344  
    Nonaccrual loans – Total   7,861     8,068     4,830  
    Loans 90 days past due and accruing – Community Banking           17  
    Loans 90 days past due and accruing – Total           17  
    Total nonperforming loans – Community Banking   4,180     4,274     4,250  
    Total nonperforming loans – Home Mortgage Lending   197     221     253  
    Total nonperforming loans – Specialty Finance   3,484     3,573     344  
    Total nonperforming loans – Total   7,861     8,068     4,847  
    Nonperforming loans guaranteed by gov’t – Community Banking   70     80      
    Nonperforming loans guaranteed by gov’t – Total   70     80      
    Net nonperforming loans – Community Banking   4,110     4,194     4,250  
    Net nonperforming loans – Home Mortgage Lending   197     221     253  
    Net nonperforming loans – Specialty Finance   3,484     3,573     344  
    Net nonperforming loans – Total   7,791     7,988     4,847  
                 
    Repossessed assets – Community Banking   50     297     297  
    Repossessed assets – Total   50     297     297  
                 
    Nonperforming purchased receivables – Specialty Finance   4,017     4,007      
                 
    Net nonperforming assets – Community Banking   4,160     4,491     4,547  
    Net nonperforming assets – Home Mortgage Lending   197     221     253  
    Net nonperforming assets – Specialty Finance   7,501     7,580     344  
    Net nonperforming assets – Total $ 11,858   $ 12,292   $ 5,144  
                 
    Adversely classified loans, net of gov’t guarantees – Community Banking $ 32,128   $ 16,592   $ 6,006  
    Adversely classified loans, net of gov’t guarantees – Home Mortgage Lending   223     252     718  
    Adversely classified loans, net of gov’t guarantees – Specialty Finance   3,484     3,573     344  
    Adversely classified loans, net of gov’t guarantees – Total $ 35,835   $ 20,417   $ 7,068  
                 
    Special mention loans, net of gov’t guarantees – Community Banking $ 3,966   $ 14,496   $ 8,902  
    Special mention loans, net of gov’t guarantees – Home Mortgage Lending   790     637      
    Special mention loans, net of gov’t guarantees – Total $ 4,756   $ 15,133   $ 8,902  
    Asset Quality, Continued June 30,   March 31,   June 30,  
        2025       2025       2024    
    Nonperforming loans, net of government guarantees / portfolio loans   0.35   %   0.38   %   0.26   %
    Nonperforming loans, net of government guarantees / portfolio loans,            
    net of government guarantees   0.38   %   0.40   %   0.28   %
    Nonperforming assets, net of government guarantees / total assets   0.37   %   0.39   %   0.18   %
    Nonperforming assets, net of government guarantees / total assets            
    net of government guarantees   0.38   %   0.41   %   0.19   %
                 
    Loans 30-89 days past due and accruing, net of government guarantees /       %    
    portfolio loans   0.06   %   0.04   %   0.03   %
    Loans 30-89 days past due and accruing, net of government guarantees /            
    portfolio loans, net of government guarantees   0.06   %   0.04   %   0.04   %
                 
    Allowance for credit losses for loans / portfolio loans   1.03   %   0.98   %   0.94   %
    Allowance for credit losses for loans / portfolio loans, net of gov’t guarantees   1.10   %   1.06   %   1.01   %
    Allowance for credit losses for loans / nonperforming loans, net of            
    government guarantees   290   %   262   %   365   %
                 
    Gross loan charge-offs for the quarter – Community Banking $3     $50     $—    
    Gross loan charge-offs for the quarter – Specialty Finance   152                
    Gross loan charge-offs for the quarter – Total   155       50          
                 
    Gross loan recoveries for the quarter – Community Banking   (15 )     (84 )     (26 )  
    Gross loan recoveries for the quarter – Home Mortgage Lending                  
    Gross loan recoveries for the quarter – Specialty Finance                  
    Gross loan recoveries for the quarter – Total ($15 )   ($84 )   ($26 )  
                 
    Net loan (recoveries) charge-offs for the quarter – Community Banking ($12 )   ($34 )   ($26 )  
    Net loan (recoveries) charge-offs for the quarter – Specialty Finance   152                
    Net loan (recoveries) charge-offs for the quarter – Total $140     ($34 )   ($26 )  
                 
    Net loan charge-offs (recoveries) year-to-date – Community Banking ($46 )   ($34 )   ($68 )  
    Net loan charge-offs (recoveries) year-to-date – Specialty Finance   152                
    Net loan charge-offs (recoveries) year-to-date – Total $106     ($34 )   ($68 )  
                 
    Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter   0.01   %     %     %
                 
    Net loan charge-offs (recoveries) year-to-date / average loans,            
    year-to-date annualized   0.01   %   (0.01 ) %   (0.01 ) %
                 
    Allowance for credit losses for purchased receivables / purchased receivables   3.05   %   3.72   %     %
                 
    Net purchased receivable charge-offs (recoveries) for the quarter $281     $—     $—    
                 
    Net purchased receivable charge-offs (recoveries) year-to-date $281     $—     $—    
                 
    Net purchased receivable charge-offs (recoveries) for the quarter /            
    average purchased receivables, for the quarter   0.27   % NA   NA  
                 
    Net purchased receivable charge-offs (recoveries) year-to-date / average            
    purchased receivables, year-to-date annualized   0.61   % NA   NA  


    Additional Financial Information

    (Dollars in thousands)
    (Unaudited)

    Average Balances, Yields, and Rates                
      Three Months Ended
      June 30, 2025   March 31, 2025   June 30, 2024
        Average     Average     Average
      Average Tax Equivalent   Average Tax Equivalent   Average Tax Equivalent
      Balance Yield/Rate   Balance Yield/Rate   Balance Yield/Rate
    Assets                
    Interest bearing deposits in other banks $ 27,216   7.60 %   $ 37,969   4.44 %   $ 17,352   5.27 %
    Portfolio investments   515,916   3.07 %     523,753   2.97 %     639,980   2.82 %
    Loans held for sale   173,675   6.50 %     46,223   5.86 %     65,102   6.08 %
    Portfolio loans   2,172,482   6.99 %     2,173,425   6.89 %     1,845,832   6.87 %
    Total interest-earning assets   2,889,289   6.27 %     2,781,370   6.10 %     2,568,266   5.83 %
    Nonearning assets   306,206         293,415         204,509    
    Total assets $ 3,195,495       $ 3,074,785       $ 2,772,775    
                     
    Liabilities and Shareholders’ Equity                
    Interest-bearing deposits $ 2,029,100   2.04 %   $ 2,002,594   2.01 %   $ 1,725,013   2.21 %
    Borrowings   86,404   4.14 %     37,081   3.55 %     38,390   3.92 %
    Total interest-bearing liabilities   2,115,504   2.12 %     2,039,675   2.04 %     1,763,403   2.25 %
                     
    Noninterest-bearing demand deposits   737,112         697,534         706,339    
    Other liabilities   54,320         63,348         58,549    
    Shareholders’ equity   288,559         274,228         244,484    
    Total liabilities and shareholders’ equity $ 3,195,495       $ 3,074,785       $ 2,772,775    
    Net spread   4.15 %     4.06 %     3.58 %
    NIM   4.66 %     4.55 %     4.24 %
    NIMTE*   4.72 %     4.61 %     4.30 %
    Cost of funds   1.57 %     1.52 %     1.60 %
    Average portfolio loans to average                
    interest-earning assets   75.19 %       78.14 %       71.87 %  
    Average portfolio loans to average total deposits   78.54 %       80.49 %       75.92 %  
    Average non-interest deposits to average                
    total deposits   26.65 %       25.83 %       29.05 %  
    Average interest-earning assets to average                
    interest-bearing liabilities   136.58 %       136.36 %       145.64 %  


    Additional Financial Information

    (Dollars in thousands)
    (Unaudited)

    Average Balances, Yields, and Rates          
      Year-to-date
      June 30, 2025   June 30, 2024
        Average     Average
      Average Tax Equivalent   Average Tax Equivalent
      Balance Yield/Rate   Balance Yield/Rate
    Assets          
    Interest bearing deposits in other banks $ 32,563   5.77 %   $ 39,457   5.36 %
    Portfolio investments   519,813   3.02 %     655,458   2.82 %
    Loans held for sale   110,301   6.35 %     48,868   6.10 %
    Portfolio loans   2,172,950   6.94 %     1,819,629   6.81 %
    Total interest-earning assets   2,835,627   6.19 %     2,563,412   5.76 %
    Nonearning assets   299,848         202,819    
    Total assets $ 3,135,475       $ 2,766,231    
               
    Liabilities and Shareholders Equity          
    Interest-bearing deposits $ 2,015,920   2.02 %   $ 1,728,468   2.17 %
    Borrowings   61,879   3.96 %     31,167   3.55 %
    Total interest-bearing liabilities   2,077,799   2.08 %     1,759,635   2.19 %
               
    Noninterest-bearing demand deposits   717,432         705,736    
    Other liabilities   58,809         59,478    
    Shareholders’ equity   281,435         241,382    
    Total liabilities and shareholders’ equity $ 3,135,475       $ 2,766,231    
    Net spread   4.11 %     3.57 %
    NIM   4.61 %     4.20 %
    NIMTE*   4.66 %     4.26 %
    Cost of funds   1.55 %     1.57 %
    Average portfolio loans to average interest-earning assets   76.63 %       70.98 %  
    Average portfolio loans to average total deposits   79.50 %       74.75 %  
    Average non-interest deposits to average total deposits   26.25 %       28.99 %  
    Average interest-earning assets to average interest-bearing liabilities   136.47 %       145.68 %  


    Additional Financial Information

    (Dollars in thousands, except per share data)
    (Unaudited)

    Capital Data (At quarter end)            
      June 30, 2025   March 31, 2025   June 30, 2024  
    Book value per share $52.55     $50.67     $44.93    
    Tangible book value per share* $43.35     $41.47     $42.03    
    Total shareholders’ equity/total assets   8.95   %   8.91   %   8.76   %
    Tangible Common Equity/Tangible Assets*   7.50   %   7.41   %   8.24   %
    Tier 1 Capital / Risk Adjusted Assets   9.80   %   9.76   %   11.68   %
    Total Capital / Risk Adjusted Assets   10.71   %   10.62   %   12.58   %
    Tier 1 Capital / Average Assets   7.99   %   8.02   %   9.17   %
    Shares outstanding   5,522,271       5,520,892       5,501,562    
    Total unrealized loss on AFS debt securities, net of income taxes ($3,571 )   ($5,452 )   ($15,197 )  
    Total unrealized gain on derivatives and hedging activities, net of income taxes $1,026     $1,097     $1,212    
    Profitability Ratios                    
      June 30, 2025   March 31, 2025   December 31,
    2024
      September 30,
    2024
      June 30, 2024  
    For the quarter:                    
    NIM 4.66 % 4.55 % 4.41 % 4.29 % 4.24 %
    NIMTE* 4.72 % 4.61 % 4.47 % 4.35 % 4.30 %
    Efficiency ratio 64.68 % 63.54 % 66.96 % 66.11 % 68.78 %
    Return on average assets 1.48 % 1.76 % 1.43 % 1.22 % 1.31 %
    Return on average equity 16.37 % 19.70 % 16.32 % 13.69 % 14.84 %
      June 30, 2025   June 30, 2024  
    Year-to-date:        
    NIM 4.61 % 4.20 %
    NIMTE* 4.66 % 4.26 %
    Efficiency ratio 64.14 % 68.85 %
    Return on average assets 1.61 % 1.25 %
    Return on average equity 17.99 % 14.35 %


    *Non-GAAP Financial Measures

    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP.

    Net interest margin on a tax equivalent basis

    Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2025 and 2024. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin for the periods indicated.

      Three Months Ended
      June 30, 2025   March 31, 2025   December 31,
    2024
      September 30,
    2024
      June 30, 2024
    Net interest income $ 33,592     $ 31,297     $ 30,841     $ 28,842     $ 27,053  
    Divided by average interest-bearing assets   2,889,289       2,781,370       2,787,517       2,674,291       2,568,266  
    Net interest margin (“NIM”)2   4.66 %     4.55 %     4.41 %     4.29 %     4.24 %
                       
    Net interest income $ 33,592     $ 31,297     $ 30,841     $ 28,842     $ 27,053  
    Plus: reduction in tax expense related to                  
    tax-exempt interest income   409       379       379       385       378  
      $ 34,001     $ 31,676     $ 31,220     $ 29,227     $ 27,431  
    Divided by average interest-bearing assets   2,889,289       2,781,370       2,787,517       2,674,291       2,568,266  
    NIMTE2   4.72 %     4.61 %     4.47 %     4.35 %     4.30 %
      Year-to-date
      June 30, 2025   June 30, 2024
    Net interest income $ 64,889     $ 53,500  
    Divided by average interest-bearing assets   2,835,627       2,563,412  
    Net interest margin (“NIM”)3   4.61 %     4.20 %
           
    Net interest income $ 64,889     $ 53,500  
    Plus: reduction in tax expense related to      
    tax-exempt interest income   788       757  
      $ 65,677     $ 54,257  
    Divided by average interest-bearing assets   2,835,627       2,563,412  
    NIMTE3   4.66 %     4.26 %

    2Calculated using actual days in the quarter divided by 365 for the quarters ended in 2025 and 366 for the quarters ended in 2024, respectively.

    3Calculated using actual days in the year divided by 365 for year-to-date period in 2025 and 366 for year-to-date period in 2024, respectively.

    *Non-GAAP Financial Measures
    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Tangible Book Value Per Share

    Tangible book value per share is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share for the periods indicated.

      June 30, 2025   March 31, 2025   December 31,
    2024
      September 30,
    2024
      June 30, 2024
                       
    Total shareholders’ equity $ 290,219   $ 279,756   $ 267,116   $ 260,050   $ 247,200
    Divided by shares outstanding   5,522     5,521     5,518     5,502     5,502
    Book value per share $ 52.55   $ 50.68   $ 48.41   $ 47.26   $ 44.93
      June 30, 2025   March 31, 2025   December 31,
    2024
      September 30,
    2024
      June 30, 2024
                       
    Total shareholders’ equity $ 290,219   $ 279,756   $ 267,116   $ 260,050   $ 247,200
    Less: goodwill and intangible assets   50,824     50,824     50,968     15,967     15,967
      $ 239,395   $ 228,932   $ 216,148   $ 244,083   $ 231,233
    Divided by shares outstanding   5,522     5,521     5,518     5,502     5,502
    Tangible book value per share $ 43.35   $ 41.47   $ 39.17   $ 44.36   $ 42.03


    Tangible Common Equity to Tangible Assets

    Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets for the periods indicated.

    Northrim BanCorp, Inc. June 30, 2025   March 31, 2025   December 31,
    2024
      September 30,
    2024
      June 30, 2024
                       
    Total shareholders’ equity $ 290,219     $ 279,756     $ 267,116     $ 260,050     $ 247,200  
    Total assets   3,243,760       3,140,960       3,041,869       2,963,392       2,821,668  
    Total shareholders’ equity to total assets   8.95 %     8.91 %     8.78 %     8.78 %     8.76 %
    Northrim BanCorp, Inc. June 30, 2025   March 31, 2025   December 31,
    2024
      September 30,
    2024
      June 30, 2024
    Total shareholders’ equity $ 290,219     $ 279,756     $ 267,116     $ 260,050     $ 247,200  
    Less: goodwill and other intangible assets, net   50,824       50,824       50,968       15,967       15,967  
    Tangible common shareholders’ equity $ 239,395     $ 228,932     $ 216,148     $ 244,083     $ 231,233  
                       
    Total assets $ 3,243,760     $ 3,140,960     $ 3,041,869     $ 2,963,392     $ 2,821,668  
    Less: goodwill and other intangible assets, net   50,824       50,824       50,968       15,967       15,967  
    Tangible assets $ 3,192,936     $ 3,090,136     $ 2,990,901     $ 2,947,425     $ 2,805,701  
    Tangible common equity ratio   7.50 %     7.41 %     7.23 %     8.28 %     8.24 %

    Note Transmitted on GlobeNewswire on July 23, 2025, at 12:15 pm Alaska Standard Time.

    The MIL Network

  • MIL-OSI: QCR Holdings, Inc. Announces Net Income of $29.0 Million for the Second Quarter of 2025

    Source: GlobeNewswire (MIL-OSI)

    Second Quarter 2025 Highlights

    • Net income of $29.0 million, or $1.71 per diluted share
    • Adjusted net income1of $29.4 million, or $1.73 per diluted share
    • NIM TEY1expanded four basis points to 3.46%
    • Adjusted ROAA1of 1.29% annualized
    • Capital markets revenue growth of 51% on a linked-quarter basis
    • Nonperforming assets declined $5.5 million, or 11%
    • Tangible book value per share1grew $1.64, or 13% annualized
    • TCE/TA ratio1improved 22 basis points to 9.92%

    MOLINE, Ill., July 23, 2025 (GLOBE NEWSWIRE) — QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $29.0 million and diluted earnings per share (“EPS”) of $1.71 for the second quarter of 2025, compared to net income of $25.8 million and diluted EPS of $1.52 for the first quarter of 2025.

    Adjusted net income1 and adjusted diluted EPS1 for the second quarter of 2025 were $29.4 million and $1.73, respectively, for the first quarter of 2025 compared to $26.0 million and $1.53, respectively, for the first quarter of 2025 and $29.3 million, and $1.73 respectively for the second quarter of 2024.

      For the Quarter Ended    
      June 30, March 31, June 30,    
    $ in millions (except per share data)  2025  2025  2024    
    Net Income $ 29.0 $ 25.8 $ 29.1    
    Diluted EPS $ 1.71 $ 1.52 $ 1.72    
    Adjusted Net Income1 $ 29.4 $ 26.0 $ 29.3    
    Adjusted Diluted EPS1 $ 1.73 $ 1.53 $ 1.73    

    “We delivered strong second quarter results highlighted by a significant increase in net interest income from the previous quarter, driven by both net interest margin expansion and strong loan growth, as well as improved capital markets revenue, and disciplined noninterest expense management,” said Todd Gipple, President and Chief Executive Officer. “These robust results led to continued capital accretion and a substantial increase in tangible book value per share1.”

    Significant Net Interest Income Growth as Margin Expansion Continues

    Net interest income for the second quarter of 2025 totaled $62.1 million, an increase of $2.1 million, or 14% annualized, from the first quarter of 2025, driven by strong earning asset growth, expanded yield on loans and investments, and lower cost of funds.   Net interest margin (“NIM”) was 2.97% and NIM on a tax-equivalent yield (“TEY”) basis1 was 3.46% for the second quarter, as compared to 2.95% and 3.42% for the prior quarter, respectively.

    “Our NIM TEY1 increased four basis points from the first quarter of 2025, which was at the top of our guidance range,” said Nick Anderson, Chief Financial Officer. “Looking ahead, we anticipate continued margin expansion and are guiding to an increase in third quarter NIM TEY1 in a range from static to an increase of four basis points, assuming no Federal Reserve rate cuts,” added Mr. Anderson.

    Improving Noninterest Income Driven by Capital Markets Revenue

    Noninterest income for the second quarter of 2025 was $22.1 million, up from $16.9 million in the first quarter of 2025. The Company generated $9.9 million of capital markets revenue in the second quarter of 2025 compared to $6.5 million in the prior quarter. Wealth management revenue totaled $4.6 million, representing a slight decline from the first quarter of 2025. However, it increased $332 thousand or 8% compared to the second quarter of 2024 and rose 23% year-to-date on an annualized basis compared to the same period in 2024.

    “During the second quarter of 2025 we saw improved low-income housing tax credit (“LIHTC”) lending activity compared to the first quarter as clients adjusted to the current environment. This increased activity drove 51% growth in our capital markets revenue. The sustained, long-term demand for affordable housing continues to support our LIHTC lending and related capital markets revenue. Our pipeline continues to improve as clients adapt to the evolving market conditions,” said Mr. Gipple.

    “Given the strengthened pipeline, we are reaffirming our guidance for Capital Markets revenue to be in a range of $50 to $60 million for the next four quarters.  In addition, we are also providing guidance over a shorter horizon and expect capital markets revenue for the third quarter to be fully back to a more normalized level and in a range of $13 to $16 million for the quarter,” added Mr. Gipple.

    Disciplined Noninterest Expense Management

    Noninterest expense for the second quarter of 2025 totaled $49.6 million compared to $46.5 million for the first quarter of 2025 and $49.9 million for the second quarter of 2024. The $3.1 million linked-quarter increase was primarily due to higher capital markets revenue and strong loan growth resulting in an improved return on average assets which drove higher variable compensation. Professional and data processing expenses also increased and were related to the Company’s digital transformation.   

    “While expenses increased compared to the first quarter, we held noninterest expense under the low end of our guidance range of $50 to $53 million, highlighting our expense flexibility,” said Mr. Anderson. “Noninterest expense remains well managed, down 9% year to date on an annualized basis compared to the same period in 2024. The Company’s efficiency ratio1 was 58.9% in the second quarter. For the third quarter of 2025, we expect noninterest expense to be in the range of $52 to $55, million which includes certain costs associated with our digital transformation and assumes both capital markets revenue and loan growth are within our guidance range,” added Mr. Anderson.

    Strong Loan Growth

    In the second quarter of 2025, the Company’s total loans and leases held for investment grew by $102.6 million, to $6.9 billion. “Loan growth was 8% annualized when adding back the impact from the planned runoff of m2 Equipment Finance loans and leases. Second quarter loan growth was driven by both our LIHTC and traditional lending businesses. Our pipeline is strong, and we anticipate loan demand to increase as clients continue to adapt to current market conditions,” stated Mr. Gipple. “We continue to be optimistic about solid loan growth for the remainder of the year and are guiding to gross loan growth in a range of 8% to 10% in the second half of the year,” added Mr. Gipple.

    Maintaining Core Deposit Strength

    Following the robust deposit growth of $276.2 million, or 16% annualized, in the first quarter of 2025, the majority of those balances were retained throughout the second quarter. Total deposits declined slightly by $19.0 million, or 1% annualized from the first quarter, while average deposit balances increased $72.0 million. Year-to-date, core deposits have increased by $311 million, or 9% annualized.

    Asset Quality Remains Excellent

    The nonperforming assets (“NPAs”) to total assets ratio was 0.46% as of June 30, 2025, down seven basis points from the prior quarter. NPAs totaled $42.7 million at the end of the second quarter of 2025, a $5.5 million, or 11% decrease from the prior quarter.

    Total criticized loans increased by $9.3 million on a linked-quarter basis. The ratio of criticized loans to total loans and leases as of June 30, 2025, increased to 2.16% as compared to 2.06% as of March 31, 2025. Despite the 10 basis point increase, the criticized loan ratio remains well below the Company’s long-term historical average.

    The Company recorded a total provision for credit losses of $4.0 million during the quarter, which was down slightly from $4.2 million in the prior quarter. Net charge-offs were $6.3 million during the second quarter of 2025, an increase of $2.1 million from the prior quarter primarily due to the charge-off of loans that had previously been fully reserved. The allowance for credit losses to total loans held for investment was 1.28% for the second quarter.

    Strong Tangible Book Value and Regulatory Capital Growth

    The Company’s tangible book value per share1 increased by $1.64, or 13% annualized, during the second quarter of 2025 due to the combination of strong earnings and a modest dividend.

    As of June 30, 2025, the Company’s tangible common equity to tangible assets ratio (“TCE”)1 increased 22 basis points to 9.92%. The improvement in TCE1 was driven by strong earnings during the quarter. The total risk-based capital ratio increased to 14.26% and the common equity tier 1 ratio increased to 10.43% due to solid earnings growth during the quarter. By comparison, these ratios were 9.70%, 14.18%, and 10.27%, respectively, as of March 31, 2025. The Company remains focused on growing its regulatory capital.

    Conference Call Details
    The Company will host an earnings call/webcast tomorrow, July 24, 2025, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through July 31, 2025. The replay access information is 877-344-7529 (international 412-317-0088); access code 8414968. A webcast of the teleconference can be accessed on the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

    About Us
    QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, and Guaranty Bank, based in Springfield, Missouri, was acquired by the Company in 2018. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. The Company has 36 locations in Iowa, Missouri, and Illinois. As of June 30, 2025, the Company had $9.2 billion in assets, $6.9 billion in loans and $7.3 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

    Endnotes

    1Adjusted non-GAAP measurements of financial performance exclude non-core and/or nonrecurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these adjusted measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.

    Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “bode”, “predict,” “suggest,” “project”, “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.
            
    A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, but are not limited to: (i) the strength of the local, state, national and international economies and financial markets, including effects of inflationary pressures, the threat or implementation of tariffs, trade wars and changes to immigration policy; (ii) changes in, and the interpretation and prioritization of, local, state and federal laws, regulations and governmental policies (including those concerning the Company’s general business); (iii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or threats thereof (including the Russian invasion of Ukraine and ongoing conflicts in the Middle East), or other adverse events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iv) new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB, the Securities and Exchange Commission (the “SEC”) or the PCAOB; (v) the imposition of tariffs or other governmental policies impacting the value of products produced by the Company’s commercial borrowers; (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions, fintech companies, and digital asset service providers and the inability to attract new customers; (vii) rapid technological changes implemented by us and our third-party vendors, including the development and implementation of tools incorporating artificial intelligence; (viii) unexpected results of acquisitions, including failure to realize the anticipated benefits of the acquisitions and the possibility that transaction and integration costs may be greater than anticipated; (ix) the loss of key executives and employees, talent shortages and employee turnover; (x) changes in consumer spending; (xi) unexpected outcomes and costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company; (xii) the economic impact on the Company and its customers of climate change, natural disasters and exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates; (xiv) credit risk and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio and large loans to certain borrowers (including CRE loans); (xv) the overall health of the local and national real estate market; (xvi) the ability to maintain an adequate level of allowance for credit losses on loans; (xvii) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and who may withdraw deposits to diversify their exposure; (xviii) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (xix) the level of non-performing assets on our balance sheet; (xx) interruptions involving our information technology and communications systems or third-party servicers; (xxi) the occurrence of fraudulent activity, breaches or failures of our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxii) changes in the interest rates and repayment rates of the Company’s assets; (xxiii) the effectiveness of the Company’s risk management framework, and (xxiv) the ability of the Company to manage the risks associated with the foregoing. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the SEC.

    Contact:
    Nick W. Anderson                        
    Chief Financial Officer                        
    (309) 743-7707 
    nanderson@qcrh.com 

    QCR Holdings, Inc.    
    Consolidated Financial Highlights    
    (Unaudited)    
                     
        As of    
        June 30, March 31, December 31, September 30, June 30,    
          2025     2025     2024     2024     2024      
                     
        (dollars in thousands)    
                     
      CONDENSED BALANCE SHEET              
                     
      Cash and due from banks $         104,769   $           98,994   $           91,732   $         103,840   $           92,173      
      Federal funds sold and interest-bearing deposits             145,704               225,716               170,592               159,159               102,262      
      Securities, net of allowance for credit losses          1,263,452            1,220,717            1,200,435            1,146,046            1,033,199      
      Loans receivable held for sale (1)                1,162                  2,025                  2,143               167,047               246,124      
      Loans/leases receivable held for investment          6,923,762            6,821,142            6,782,261            6,661,755            6,608,262      
      Allowance for credit losses              (88,732 )              (90,354 )              (89,841 )              (86,321 )              (87,706 )    
      Intangibles                9,738                 10,400                 11,061                 11,751                 12,441      
      Goodwill             138,595               138,595               138,595               138,596               139,027      
      Derivatives             184,982               180,997               186,781               261,913               194,354      
      Other assets             558,899               544,547               532,271               524,779               531,855      
      Total assets $      9,242,331   $      9,152,779   $      9,026,030   $      9,088,565   $      8,871,991      
                     
      Total deposits $      7,318,353   $      7,337,390   $      7,061,187   $      6,984,633   $      6,764,667      
      Total borrowings          509,359            429,921            569,532            660,344            768,671      
      Derivatives          209,505            206,925            214,823            285,769            221,798      
      Other liabilities             154,560               155,796               183,101               181,199               180,536      
      Total stockholders’ equity          1,050,554            1,022,747               997,387               976,620               936,319      
      Total liabilities and stockholders’ equity $      9,242,331   $      9,152,779   $      9,026,030   $      9,088,565   $      8,871,991      
                     
      ANALYSIS OF LOAN PORTFOLIO              
      Loan/lease mix: (2)              
      Commercial and industrial – revolving $         380,029   $         388,479   $         387,991   $         387,409   $         362,115      
      Commercial and industrial – other          1,180,859            1,231,198            1,295,961            1,321,053            1,370,561      
      Commercial and industrial – other – LIHTC             194,830               212,921               218,971                 89,028                 92,637      
      Total commercial and industrial          1,755,718            1,832,598            1,902,923            1,797,490            1,825,313      
      Commercial real estate, owner occupied             593,675               599,488               605,993               622,072               633,596      
      Commercial real estate, non-owner occupied          1,036,049            1,040,281            1,077,852            1,103,694            1,082,457      
      Construction and land development             454,022               403,001               395,557               342,335               331,454      
      Construction and land development – LIHTC          1,075,000            1,016,207               917,986               913,841               750,894      
      Multi-family             301,432               289,782               303,662               324,090               329,239      
      Multi-family – LIHTC             950,331               888,517               828,448               973,682            1,148,244      
      Direct financing leases               12,880                 14,773                 17,076                 19,241                 25,808      
      1-4 family real estate             592,253               592,127               588,179               587,512               583,542      
      Consumer             153,564               146,393               146,728               144,845               143,839      
      Total loans/leases $      6,924,924   $      6,823,167   $      6,784,404   $      6,828,802   $      6,854,386      
      Less allowance for credit losses               88,732                 90,354                 89,841                 86,321                 87,706      
      Net loans/leases $      6,836,192   $      6,732,813   $      6,694,563   $      6,742,481   $      6,766,680      
                     
                     
      ANALYSIS OF SECURITIES PORTFOLIO              
      Securities mix:              
      U.S. government sponsored agency securities $           14,267   $           17,487   $           20,591   $           18,621   $           20,101      
      Municipal securities          1,033,642            1,003,985               971,567               965,810               885,046      
      Residential mortgage-backed and related securities               58,864                 43,194                 50,042                 53,488                 54,708      
      Asset backed securities                6,684                  7,764                  9,224                 10,455                 12,721      
      Other securities               67,358                 66,105                 65,745                 39,190                 38,464      
      Trading securities (3)               82,900                 82,445                 83,529                 58,685                 22,362      
      Total securities $      1,263,715   $      1,220,980   $      1,200,698   $      1,146,249   $      1,033,402      
      Less allowance for credit losses                   263                     263                     263                     203                     203      
      Net securities $      1,263,452   $      1,220,717   $      1,200,435   $      1,146,046   $      1,033,199      
                     
      ANALYSIS OF DEPOSITS              
      Deposit mix:              
      Noninterest-bearing demand deposits $         952,032   $         963,851   $         921,160   $         969,348   $         956,445      
      Interest-bearing demand deposits          5,087,783            5,119,601            4,828,216            4,715,087            4,644,918      
      Time deposits             974,341               951,606               953,496               942,847               859,593      
      Brokered deposits             304,197               302,332               358,315               357,351               303,711      
      Total deposits $      7,318,353   $      7,337,390   $      7,061,187   $      6,984,633   $      6,764,667      
                     
      ANALYSIS OF BORROWINGS              
      Borrowings mix:              
      Term FHLB advances $         145,383   $         145,383   $         145,383   $         145,383   $         135,000      
      Overnight FHLB advances                80,000                         –               140,000               230,000               350,000      
      Other short-term borrowings                1,350                  2,050                  1,800                  2,750                  1,600      
      Subordinated notes             233,701               233,595               233,489               233,383               233,276      
      Junior subordinated debentures               48,925                 48,893                 48,860                 48,828                 48,795      
      Total borrowings $         509,359   $         429,921   $         569,532   $         660,344   $         768,671      
                     
    (1) Loans with a fair value of $0 million, $0 million, $0 million, $165.9 million and $243.2 million have been identified for securitization and are included in LHFS at June 30, 2025, March 31, 2025, December 31, 2024, September 30, 2024 and June 30, 2024, respectively.
       
    (2) Loan categories with significant LIHTC loan balances have been broken out separately.  Total LIHTC balances within the loan/lease portfolio were $2.3 billion at June 30, 2025.    
    (3) Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company.    
       
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                   
          For the Quarter Ended
          June 30, March 31, December 31, September 30, June 30,
           2025   2025     2024     2024    2024
                   
          (dollars in thousands, except per share data)
                   
    INCOME STATEMENT            
    Interest income   $             120,247 $             116,673   $             121,642   $             125,420   $             119,746
    Interest expense                    58,165                  56,687                    60,438                    65,698                    63,583
    Net interest income                     62,082                  59,986                    61,204                    59,722                    56,163
    Provision for credit losses                      4,043                    4,234                      5,149                      3,484                      5,496
    Net interest income after provision for credit losses   $              58,039 $              55,752   $              56,055   $              56,238   $              50,667
                   
                   
    Trust fees (1)   $                3,395 $                3,686   $                3,456   $                3,270   $                3,103
    Investment advisory and management fees (1)                      1,254                    1,254                      1,320                      1,229                      1,214
    Deposit service fees                      2,187                    2,183                      2,228                      2,294                      1,986
    Gains on sales of residential real estate loans, net                         556                       297                         734                         385                         540
    Gains on sales of government guaranteed portions of loans, net                          40                        61                          49                           –                             12
    Capital markets revenue                      9,869                    6,516                    20,552                    16,290                    17,758
    Earnings on bank-owned life insurance                         998                       524                         797                         814                      2,964
    Debit card fees                      1,648                    1,488                      1,555                      1,575                      1,571
    Correspondent banking fees                         699                       614                         560                         507                         510
    Loan related fee income                      1,096                       898                         950                         949                         962
    Fair value gain (loss) on derivatives and trading securities                         230                   (1,007 )                   (1,781 )                      (886 )                        51
    Other                          143                       378                         205                         730                         218
    Total noninterest income   $              22,115 $              16,892   $              30,625   $              27,157   $              30,889
                   
                   
    Salaries and employee benefits   $              28,474 $              27,364   $              33,610   $              31,637   $              31,079
    Occupancy and equipment expense                      6,837                    6,455                      6,354                      6,168                      6,377
    Professional and data processing fees                      6,089                    5,144                      5,480                      4,457                      4,823
    Restructuring expense                           –                            –                              –                         1,954                           –   
    FDIC insurance, other insurance and regulatory fees                      1,960                    1,970                      1,934                      1,711                      1,854
    Loan/lease expense                         407                       381                         513                         587                         151
    Net cost of (income from) and gains/losses on operations of other real estate                          50                         (9 )                        23                         (42 )                        28
    Advertising and marketing                      1,746                    1,613                      1,886                      2,124                      1,565
    Communication and data connectivity                         274                       290                         345                         333                         318
    Supplies                           252                       207                         252                         278                         259
    Bank service charges                         720                       596                         635                         603                         622
    Correspondent banking expense                         314                       329                         328                         325                         363
    Intangibles amortization                         661                       661                         691                         690                         690
    Goodwill impairment                           –                            –                              –                            431                           –   
    Payment card processing                         547                       594                         516                         785                         706
    Trust expense                         413                       357                         381                         395                         379
    Other                          839                       587                         551                      1,129                         674
    Total noninterest expense   $              49,583 $              46,539   $              53,499   $              53,565   $              49,888
                   
    Net income before income taxes   $              30,571 $              26,105   $              33,181   $              29,830   $              31,668
    Federal and state income tax expense                      1,552                       308                      2,956                      2,045                      2,554
    Net income     $              29,019 $              25,797   $              30,225   $              27,785   $              29,114
                   
    Basic EPS   $                  1.71 $                  1.53   $                  1.80   $                  1.65   $                  1.73
    Diluted EPS   $                  1.71 $                  1.52   $                  1.77   $                  1.64   $                  1.72
                   
                   
    Weighted average common shares outstanding              16,928,542            16,900,785              16,871,652              16,846,200              16,814,814
    Weighted average common and common equivalent shares outstanding              17,006,282            17,013,992              17,024,481              16,982,400              16,921,854
                   
    (1) Trust fees and investment advisory and management fees when combined are referred to as wealth management revenue.          
       
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
               
          For the Six Months Ended
          June 30,   June 30,
            2025       2024  
               
          (dollars in thousands, except per share data)
               
    INCOME STATEMENT        
    Interest income   $             236,920     $             234,795  
    Interest expense                  114,852                    123,933  
    Net interest income                   122,068                    110,862  
    Provision for credit losses                      8,277                        8,465  
    Net interest income after provision for credit losses   $             113,791     $             102,397  
               
               
    Trust fees     $                7,081     $                6,302  
    Investment advisory and management fees                      2,508                        2,315  
    Deposit service fees                      4,370                        4,008  
    Gains on sales of residential real estate loans, net                         853                           922  
    Gains on sales of government guaranteed portions of loans, net                         101                            36  
    Capital markets revenue                    16,385                      34,215  
    Earnings on bank-owned life insurance                      1,522                        3,832  
    Debit card fees                      3,136                        3,037  
    Correspondent banking fees                      1,313                        1,022  
    Loan related fee income                      1,994                        1,798  
    Fair value loss on derivatives and trading securities                        (777 )                        (112 )
    Other                          521                           372  
    Total noninterest income   $              39,007     $              57,747  
               
               
    Salaries and employee benefits   $              55,838     $              62,939  
    Occupancy and equipment expense                    13,292                      12,891  
    Professional and data processing fees                    11,233                        9,436  
    FDIC insurance, other insurance and regulatory fees                      3,930                        3,799  
    Loan/lease expense                         788                           529  
    Net cost of (income from) and gains/losses on operations of other real estate                        41                             (2 )
    Advertising and marketing                      3,359                        3,048  
    Communication and data connectivity                         564                           719  
    Supplies                          459                           534  
    Bank service charges                      1,316                        1,190  
    Correspondent banking expense                         643                           668  
    Intangibles amortization                      1,322                        1,380  
    Payment card processing                      1,141                        1,352  
    Trust expense                         770                           804  
    Other                       1,426                        1,291  
    Total noninterest expense   $              96,122     $             100,578  
               
    Net income before income taxes   $              56,676     $              59,566  
    Federal and state income tax expense                      1,860                        3,726  
    Net income    $              54,816     $              55,840  
               
    Basic EPS   $                  3.24     $                  3.32  
    Diluted EPS   $                  3.22     $                  3.30  
               
               
    Weighted average common shares outstanding              16,914,663                16,799,081  
    Weighted average common and common equivalent shares outstanding              17,010,136                16,916,264  
                     
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                       
        As of and for the Quarter Ended   For the Six Months Ended
        June 30,  March 31, December 31, September 30, June 30,   June 30, June 30, 
          2025     2025     2024     2024     2024       2025     2024  
                       
        (dollars in thousands, except per share data)
                       
      COMMON SHARE DATA                
      Common shares outstanding         16,934,698          16,920,363          16,882,045          16,861,108          16,824,985        
      Book value per common share (1) $             62.04   $             60.44   $             59.08   $             57.92   $             55.65        
      Tangible book value per common share (Non-GAAP) (2) $             53.28   $             51.64   $             50.21   $             49.00   $             46.65        
      Closing stock price $             67.90   $             71.32   $             80.64   $             74.03   $             60.00        
      Market capitalization $      1,149,866   $      1,206,760   $      1,361,368   $      1,248,228   $      1,009,499        
      Market price / book value   109.45 %   117.99 %   136.49 %   127.81 %   107.82 %      
      Market price / tangible book value   127.45 %   138.11 %   160.59 %   151.07 %   128.62 %      
      Earnings per common share (basic) LTM (3) $              6.69   $              6.71   $              6.77   $              6.93   $              6.78        
      Price earnings ratio LTM (3)  10.15 x   10.63 x   11.91 x   10.68 x   8.85 x       
      TCE / TA (Non-GAAP) (4)   9.92 %   9.70 %   9.55 %   9.24 %   9.00 %      
                       
                       
      CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY        
      Beginning balance $      1,022,747   $         997,387   $         976,620   $         936,319   $         907,342        
      Net income               29,019                 25,797                 30,225                 27,785                 29,114        
      Other comprehensive income (loss), net of tax               (1,671 )                   404                 (9,628 )               12,057                    (368 )      
      Common stock cash dividends declared               (1,016 )               (1,015 )               (1,013 )               (1,012 )               (1,008 )      
      Other (5)                1,475                     174                  1,183                  1,471                  1,239        
      Ending balance $      1,050,554   $      1,022,747   $         997,387   $         976,620   $         936,319        
                       
                       
      REGULATORY CAPITAL RATIOS (6):                
      Total risk-based capital ratio   14.26 %   14.18 %   14.10 %   13.87 %   14.21 %      
      Tier 1 risk-based capital ratio   10.96 %   10.81 %   10.57 %   10.33 %   10.49 %      
      Tier 1 leverage capital ratio   11.22 %   11.06 %   10.73 %   10.50 %   10.40 %      
      Common equity tier 1 ratio   10.43 %   10.27 %   10.03 %   9.79 %   9.92 %      
                       
                       
      KEY PERFORMANCE RATIOS AND OTHER METRICS                 
      Return on average assets (annualized)   1.27 %   1.14 %   1.34 %   1.24 %   1.33 %     1.21 %   1.30 %
      Return on average total equity (annualized)   11.15 %   10.14 %   12.15 %   11.55 %   12.63 %     10.65 %   12.32 %
      Net interest margin   2.97 %   2.95 %   2.95 %   2.90 %   2.82 %     2.95 %   2.82 %
      Net interest margin (TEY) (Non-GAAP)(7)   3.46 %   3.42 %   3.43 %   3.37 %   3.27 %     3.45 %   3.26 %
      Efficiency ratio (Non-GAAP) (8)   58.89 %   60.54 %   58.26 %   61.65 %   57.31 %     59.68 %   59.65 %
      Gross loans/leases held for investment / total assets    74.91 %   74.53 %   75.14 %   73.30 %   74.48 %     74.91 %   74.48 %
      Gross loans/leases held for investment / total deposits    94.61 %   92.96 %   96.05 %   95.38 %   97.69 %     94.61 %   97.69 %
      Effective tax rate   5.08 %   1.18 %   8.91 %   6.86 %   8.06 %     3.28 %   6.26 %
      Full-time equivalent employees (9)                1,001                     972                     980                     976                     988                     1,001                      988  
                       
                       
      AVERAGE BALANCES                 
      Assets $      9,155,473   $      9,015,439   $      9,050,280   $      8,968,653   $      8,776,002     $       9,085,843   $       8,663,429  
      Loans/leases          6,881,731            6,790,312            6,839,153            6,840,527            6,779,075               6,836,274             6,688,844  
      Deposits          7,218,540            7,146,286            7,109,567            6,858,196            6,687,188               7,182,612             6,641,324  
      Total stockholders’ equity          1,041,428            1,017,487               995,012               962,302               921,986               1,029,524                912,679  
                       
    (1 ) Includes accumulated other comprehensive income (loss). 
    (2 ) Includes accumulated other comprehensive income (loss) and excludes intangible assets.  See GAAP to Non-GAAP reconciliations.   
    (3 ) LTM : Last twelve months.        
    (4 ) TCE / TCA : tangible common equity / total tangible assets.  See GAAP to non-GAAP reconciliations.     
    (5 ) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.     
    (6 ) (6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.    
    (7 ) TEY : Tax equivalent yield.  See GAAP to Non-GAAP reconciliations.       
    (8 ) See GAAP to Non-GAAP reconciliations.        
    (9 ) The increase in full-time equivalent employees in the second quarter of 2025 includes 21 summer interns.     
         
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                               
      ANALYSIS OF NET INTEREST INCOME AND MARGIN                  
                               
          For the Quarter Ended
          June 30, 2025   March 31, 2025   June 30, 2024
           Average
    Balance 
     Interest
    Earned or
    Paid 
     Average
    Yield or Cost 
       Average
    Balance 
     Interest
    Earned or
    Paid 
     Average
    Yield or Cost 
       Average
    Balance 
     Interest
    Earned or
    Paid 
     Average
    Yield or Cost 
                               
          (dollars in thousands)
                               
      Fed funds sold   $        14,285 $             159 4.40 %   $          9,009 $              99 4.40 %   $        13,065 $           183 5.54 %
      Interest-bearing deposits at financial institutions          151,898              1,634 4.31 %            166,897              1,804 4.38 %              80,998            1,139 5.66 %
      Investment securities – taxable          401,657              4,805 4.79 %            400,779              4,588 4.59 %            377,747            4,286 4.53 %
      Investment securities – nontaxable (1)          893,753             12,872 5.76 %            843,476            11,722 5.57 %            704,761            9,462 5.37 %
      Restricted investment securities            34,037                 622 7.23 %              30,562                534 6.99 %              43,398               869 7.92 %
      Loans (1)         6,881,731           110,245 6.43 %         6,790,312          107,439 6.42 %         6,779,075         112,719 6.69 %
      Total earning assets (1) $    8,377,361 $       130,337 6.24 %   $    8,241,035 $      126,186 6.20 %   $    7,999,044 $     128,658 6.46 %
                               
      Interest-bearing deposits $    5,080,367 $         38,604 3.05 %   $    5,005,853 $        37,698 3.05 %   $    4,649,625 $       40,924 3.54 %
      Time deposits         1,193,035             12,409 4.17 %         1,204,593            12,690 4.27 %         1,091,870           12,128 4.47 %
      Short-term borrowings              1,420                   15 4.23 %                1,839                  18 3.97 %                1,622                 21 5.18 %
      Federal Home Loan Bank advances           250,603              2,853 4.50 %            177,883              1,996 4.49 %            464,231            6,238 5.32 %
      Subordinated debentures          233,631              3,599 6.16 %            233,525              3,601 6.17 %            233,207            3,582 6.14 %
      Junior subordinated debentures            48,904                 685 5.54 %              48,871                684 5.60 %              48,774               688 5.58 %
      Total interest-bearing liabilities $    6,807,960 $         58,165 3.42 %   $    6,672,564 $        56,687 3.44 %   $    6,489,329 $       63,581 3.93 %
                               
      Net interest income (1)   $         72,172       $        69,499       $       65,077  
      Net interest margin (2)     2.97 %       2.95 %       2.82 %
      Net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.46 %       3.42 %       3.27 %
      Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.45 %       3.41 %       3.26 %
      Cost of funds (4)       3.01 %       3.02 %       3.43 %
                               
                               
          For the Six Months Ended        
          June 30, 2025   June 30, 2024    
           Average
    Balance 
     Interest
    Earned or
    Paid 
     Average
    Yield or Cost 
       Average
    Balance 
     Interest
    Earned or
    Paid 
     Average
    Yield or Cost 
           
                               
          (dollars in thousands)        
                               
      Fed funds sold  $        11,662 $             258 4.40 %   $        16,510 $             452 5.41 %        
      Interest-bearing deposits at financial institutions          159,356              3,438 4.35 %              86,277              2,339 5.45 %        
      Investment securities – taxable          401,220              9,393 4.69 %            375,644              8,546 4.54 %        
      Investment securities – nontaxable (1)          868,754             24,594 5.67 %            695,365            18,813 5.41 %        
      Restricted investment securities            32,309              1,156 7.12 %              40,742              1,543 7.49 %        
      Loans (1)         6,836,274           217,684 6.42 %         6,688,844          220,392 6.63 %        
      Total earning assets (1) $    8,309,575 $       256,523 6.22 %   $    7,903,382 $      252,085 6.41 %        
                               
      Interest-bearing deposits $    5,041,914 $         76,302 3.05 %   $    4,589,479 $        80,027 3.51 %        
      Time deposits        1,198,782             25,098 4.22 %         1,099,746            24,473 4.48 %        
      Short-term borrowings              1,629                   33 4.05 %                1,688                  44 5.19 %        
      Federal Home Loan Bank advances          214,444              4,849 4.50 %            409,725            10,977 5.30 %        
      Subordinated debentures          233,579              7,201 6.17 %            233,154              7,062 6.06 %        
      Junior subordinated debentures            48,888              1,369 5.57 %              48,758              1,381 5.60 %        
      Total interest-bearing liabilities $    6,739,236 $       114,852 3.43 %   $    6,382,550 $      123,964 3.90 %        
                               
      Net interest income (1)   $       141,671       $      128,121          
      Net interest margin (2)     2.95 %       2.82 %        
      Net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.45 %       3.26 %        
      Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.44 %       3.24 %        
      Cost of funds (4)       3.01 %       3.39 %        
                               
                               
    (1 ) Includes nontaxable securities and loans.  Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.  
    (2 ) See “Select Financial Data – Subsidiaries” for a breakdown of amortization/accretion included in net interest margin for each period presented.     
    (3 ) TEY : Tax equivalent yield.  See GAAP to Non-GAAP reconciliations.           
    (4 ) Cost of funds includes the effect of noninterest-bearing deposits.           
         
    QCR Holdings, Inc.  
    Consolidated Financial Highlights  
    (Unaudited)  
                   
        As of  
        June 30, March 31,  December 31, September 30, June 30,  
          2025     2025     2024     2024     2024    
                   
        (dollars in thousands, except per share data)  
                   
      ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES            
      Beginning balance $         90,354   $            89,841   $         86,321   $         87,706   $         84,470    
      Change in ACL for transfer of loans to LHFS                    –                           –                        93                (1,812 )                  498    
      Credit loss expense                4,667                   4,743                 6,832                 3,828                 4,343    
      Loans/leases charged off              (6,490 )                (4,944 )              (4,787 )              (3,871 )              (1,751 )  
      Recoveries on loans/leases previously charged off                  201                      714                 1,382                    470                    146    
      Ending balance $         88,732   $            90,354   $         89,841   $         86,321   $         87,706    
                   
                   
      NONPERFORMING ASSETS             
      Nonaccrual loans/leases  $         42,482   $            47,259   $         40,080   $         33,480   $         33,546    
      Accruing loans/leases past due 90 days or more                     7                      356                 4,270                 1,298                     87    
      Total nonperforming loans/leases             42,489                  47,615               44,350               34,778               33,633    
      Other real estate owned                   62                      402                    661                    369                    369    
      Other repossessed assets                  113                      122                    543                    542                    512    
      Total nonperforming assets $         42,664   $            48,139   $         45,554   $         35,689   $         34,514    
                   
                   
      ASSET QUALITY RATIOS            
      Nonperforming assets / total assets    0.46 %   0.53 %   0.50 %   0.39 %   0.39 %  
      ACL for loans and leases / total loans/leases held for investment   1.28 %   1.32 %   1.32 %   1.30 %   1.33 %  
      ACL for loans and leases / nonperforming loans/leases    208.84 %   189.76 %   202.57 %   248.21 %   260.77 %  
      Net charge-offs as a % of average loans/leases   0.09 %   0.06 %   0.05 %   0.05 %   0.02 %  
                   
                   
                   
      INTERNALLY ASSIGNED RISK RATING (1)            
      Special mention $         68,621   $            55,327   $         73,636   $         80,121   $         85,096    
      Substandard (2)             81,040                  85,033               84,930               70,022               80,345    
      Doubtful (2)                    –                           –                         –                         –                         –       
      Total Criticized loans (3) $        149,661   $          140,360   $        158,566   $        150,143   $        165,441    
                   
      Classified loans as a % of total loans/leases (2)   1.17 %   1.25 %   1.25 %   1.03 %   1.17 %  
      Total Criticized loans as a % of total loans/leases (3)   2.16 %   2.06 %   2.34 %   2.20 %   2.41 %  
                   
    (1 ) Amounts exclude the government guaranteed portion, if any.  The Company assigns internal risk ratings of Pass for the government guaranteed portion.
    (2 ) Classified loans are defined as loans with internally assigned risk ratings of 10 or 11, regardless of performance, and include loans identified as Substandard or Doubtful.
    (3 ) Total Criticized loans are defined as loans with internally assigned risk ratings of 9, 10, or 11 , regardless of performance, and include loans identified as Special Mention, Substandard, or Doubtful.
         
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                           
          For the Quarter Ended For the Year Ended
          June 30,    March 31,   June 30,   June 30,   June 30,
      SELECT FINANCIAL DATA – SUBSIDIARIES     2025       2025       2024       2025       2024  
          (dollars in thousands)
                           
      TOTAL ASSETS                    
      Quad City Bank and Trust (1)   $          2,662,450     $          2,777,634     $          2,559,049          
      m2 Equipment Finance, LLC                  242,722                    276,096                    359,012          
      Cedar Rapids Bank and Trust                2,664,293                  2,617,143                  2,428,267          
      Community State Bank                1,605,966                  1,583,646                  1,531,109          
      Guaranty Bank                 2,365,944                  2,331,944                  2,369,754          
                           
      TOTAL DEPOSITS                    
      Quad City Bank and Trust (1)   $          2,309,942     $          2,397,047     $          2,100,520          
      Cedar Rapids Bank and Trust                1,884,370                  1,883,952                  1,721,564          
      Community State Bank                1,272,296                  1,238,307                  1,188,551          
      Guaranty Bank                 1,866,749                  1,840,774                  1,791,448          
                           
      TOTAL LOANS & LEASES                    
      Quad City Bank and Trust (1)   $          2,032,168     $          2,041,181     $          2,107,605          
      m2 Equipment Finance, LLC                  250,019                    284,983                    363,897          
      Cedar Rapids Bank and Trust                1,852,316                  1,790,065                  1,736,438          
      Community State Bank                1,206,735                  1,197,005                  1,162,686          
      Guaranty Bank                 1,833,706                  1,794,915                  1,847,658          
                           
      TOTAL LOANS & LEASES / TOTAL DEPOSITS                    
      Quad City Bank and Trust (1)     88 %     85 %     100 %        
      Cedar Rapids Bank and Trust     98 %     95 %     101 %        
      Community State Bank     95 %     97 %     98 %        
      Guaranty Bank      98 %     98 %     103 %        
                           
                           
      TOTAL LOANS & LEASES / TOTAL ASSETS                    
      Quad City Bank and Trust (1)     76 %     73 %     82 %        
      Cedar Rapids Bank and Trust     70 %     68 %     72 %        
      Community State Bank     75 %     76 %     76 %        
      Guaranty Bank      78 %     77 %     78 %        
                           
      ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT                    
      Quad City Bank and Trust (1)     1.32 %     1.44 %     1.43 %        
      m2 Equipment Finance, LLC     4.26 %     4.37 %     3.86 %        
      Cedar Rapids Bank and Trust      1.35 %     1.38 %     1.38 %        
      Community State Bank     1.09 %     1.08 %     1.08 %        
      Guaranty Bank      1.29 %     1.30 %     1.13 %        
                           
      RETURN ON AVERAGE ASSETS (ANNUALIZED)                    
      Quad City Bank and Trust (1)     1.24 %     1.31 %     0.88 %     1.28 %     0.84 %
      Cedar Rapids Bank and Trust     2.36 %     2.14 %     2.94 %     2.25 %     3.01 %
      Community State Bank     1.31 %     1.07 %     1.26 %     1.19 %     1.25 %
      Guaranty Bank      0.85 %     0.72 %     1.42 %     0.79 %     1.15 %
                           
      NET INTEREST MARGIN PERCENTAGE (2)                    
      Quad City Bank and Trust (1)     3.45 %     3.45 %     3.39 %     3.45 %     3.35 %
      Cedar Rapids Bank and Trust     3.99 %     4.00 %     3.75 %     4.00 %     3.76 %
      Community State Bank      3.87 %     3.78 %     3.72 %     3.83 %     3.74 %
      Guaranty Bank (3)     3.11 %     3.05 %     2.99 %     3.08 %     2.99 %
                           
      ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET                    
      INTEREST MARGIN, NET                    
      Community State Bank   $                     (1 )   $                     (1 )   $                     (1 )   $                     (2 )   $                     (2 )
      Guaranty Bank                         118                           218                           301                           336       697  
      QCR Holdings, Inc. (4)                         (33 )                         (33 )                         (32 )                         (66 )     (64 )
                           
    (1 ) Quad City Bank and Trust amounts include m2 Equipment Finance, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Equipment Finance, LLC  is also presented separately for certain (applicable) measurements.
    (2 ) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
    (3 ) Guaranty Bank’s net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 2.86% for the quarter ended June 30, 2025, 2.91% for the quarter ended March 31, 2025 and 2.86% for the quarter ended June 30, 2024.  
    (4 ) Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.
    QCR Holdings, Inc.    
    Consolidated Financial Highlights    
    (Unaudited)    
                               
          As of  
          June 30,   March 31,    December 31,   September 30,   June 30,     
      GAAP TO NON-GAAP RECONCILIATIONS     2025       2025       2024       2024       2024      
          (dollars in thousands, except per share data)  
      TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)                        
                               
      Stockholders’ equity (GAAP)   $        1,050,554     $        1,022,747     $           997,387     $           976,620     $           936,319      
      Less: Intangible assets                148,333                  148,995                  149,657                  150,347                  151,468      
      Tangible common equity (non-GAAP)   $           902,221     $           873,752     $           847,730     $           826,273     $           784,851      
                               
      Total assets (GAAP)   $        9,242,331     $        9,152,779     $        9,026,030     $        9,088,565     $        8,871,991      
      Less: Intangible assets                148,333                  148,995                  149,657                  150,347                  151,468      
      Tangible assets (non-GAAP)   $        9,093,998     $        9,003,784     $        8,876,373     $        8,938,218     $        8,720,523      
                               
      Tangible common equity to tangible assets ratio (non-GAAP)     9.92 %     9.70 %     9.55 %     9.24 %     9.00 %    
                               
                               
                               
    (1 ) This ratio is a non-GAAP financial measure. The Company’s management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to stockholders’ equity and total assets, which are the most directly comparable GAAP financial measures.
         
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                                   
      GAAP TO NON-GAAP RECONCILIATIONS   For the Quarter Ended   For the Six Months Ended
          June 30,   March 31,   December 31,   September 30,   June 30,   June 30,    June 30,
      ADJUSTED NET INCOME (1)     2025       2025       2024       2024       2024       2025       2024  
          (dollars in thousands, except per share data)
                                   
      Net income (GAAP)   $            29,019     $            25,797     $            30,225     $            27,785     $            29,114     $            54,816     $            55,840  
                                   
      Less non-core items (post-tax) (2):                            
      Income:                            
      Fair value loss on derivatives, net                      (397 )                      (156 )                   (2,594 )                      (542 )                      (145 )                      (553 )                      (288 )
      Total non-core income (non-GAAP)   $                (397 )   $                (156 )   $             (2,594 )   $                (542 )   $                (145 )   $                (553 )   $                (288 )
                                   
      Expense:                            
      Goodwill impairment                           –                             –                             –                         431                             –                             –                             –  
      Restructuring expense                           –                             –                             –                      1,544                             –                             –                             –  
      Total non-core expense (non-GAAP)   $                     –     $                     –     $                     –     $              1,975     $                     –     $                     –     $                     –  
                                   
                                   
      Adjusted net income  (non-GAAP) (1)   $            29,416     $            25,953     $            32,819     $            30,302     $            29,259     $            55,369     $            56,128  
                                   
      ADJUSTED EARNINGS PER COMMON SHARE (1)                            
                                   
      Adjusted net income (non-GAAP) (from above)   $            29,416     $            25,953     $            32,819     $            30,302     $            29,259     $            55,369     $            56,128  
                                   
      Weighted average common shares outstanding            16,928,542              16,900,785              16,871,652              16,846,200              16,814,814              16,914,663              16,799,081  
      Weighted average common and common equivalent shares outstanding            17,006,282              17,013,992              17,024,481              16,982,400              16,921,854              17,010,136              16,916,264  
                                   
      Adjusted earnings per common share (non-GAAP):                            
      Basic   $                1.74     $                1.54     $                1.95     $                1.80     $                1.74     $                3.27     $                3.34  
      Diluted   $                1.73     $                1.53     $                1.93     $                1.78     $                1.73     $                3.26     $                3.32  
                                   
      ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)                            
                                   
      Adjusted net income (non-GAAP) (from above)   $            29,416     $            25,953     $            32,819     $            30,302     $            29,259     $            55,369     $            56,128  
                                   
      Average Assets   $        9,155,473     $        9,015,439     $        9,050,280     $        8,968,653     $        8,776,002     $        9,085,843     $        8,663,429  
                                   
      Adjusted return on average assets (annualized) (non-GAAP)     1.29 %     1.15 %     1.45 %     1.35 %     1.33 %     1.22 %     1.30 %
      Adjusted return on average equity (annualized) (non-GAAP)     11.30 %     10.20 %     13.19 %     12.60 %     12.69 %     10.76 %     12.30 %
                                   
      NET INTEREST MARGIN (TEY) (3)                            
                                   
      Net interest income (GAAP)   $            62,082     $            59,986     $            61,204     $            59,722     $            56,163     $           122,068     $           110,862  
      Plus: Tax equivalent adjustment (4)                  10,090                      9,513                      9,698                      9,544                      8,914                    19,603                    17,259  
      Net interest income – tax equivalent (non-GAAP)   $            72,172     $            69,499     $            70,902     $            69,266     $            65,077     $           141,671     $           128,121  
      Less:  Acquisition accounting net accretion                        84                         184                         471                         463                         268                         268                         631  
      Adjusted net interest income   $            72,088     $            69,315     $            70,431     $            68,803     $            64,809     $           141,403     $           127,490  
                                   
      Average earning assets   $        8,377,361     $        8,241,035     $        8,241,190     $        8,183,196     $        7,999,044     $        8,309,575     $        7,903,382  
                                   
      Net interest margin (GAAP)     2.97 %     2.95 %     2.95 %     2.90 %     2.82 %     2.97 %     2.82 %
      Net interest margin (TEY) (non-GAAP)     3.46 %     3.42 %     3.43 %     3.37 %     3.27 %     3.45 %     3.26 %
      Adjusted net interest margin (TEY) (non-GAAP)     3.45 %     3.41 %     3.40 %     3.34 %     3.26 %     3.44 %     3.24 %
                                   
      EFFICIENCY RATIO (5)                            
                                   
      Noninterest expense (GAAP)   $            49,583     $            46,539     $            53,499     $            53,565     $            49,888     $            96,122     $           100,578  
                                   
      Net interest income (GAAP)   $            62,082     $            59,986     $            61,204     $            59,722     $            56,163     $           122,068     $           110,862  
      Noninterest income (GAAP)                  22,115                    16,892                    30,625                    27,157                    30,889                    39,007                    57,747  
      Total income   $            84,197     $            76,878     $            91,829     $            86,879     $            87,052     $           161,075     $           168,609  
                                   
      Efficiency ratio (noninterest expense/total income) (non-GAAP)     58.89 %     60.54 %     58.26 %     61.65 %     57.31 %     59.68 %     59.65 %
      Adjusted efficiency ratio (core noninterest expense/core total income) (non-GAAP)     58.54 %     60.38 %     56.25 %     58.45 %     57.19 %     59.42 %     59.52 %
                                   
                                   
    (1 ) Adjusted net income, adjusted earnings per common share, adjusted return on average assets and average equity are non-GAAP financial measures. The Company’s management believes that these measurements are important to investors as they exclude non-core or non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. In compliance with applicable rules of the SEC, these non-GAAP measures are reconciled to net income, which is the most directly comparable GAAP financial measure.
    (2 ) Non-core or non-recurring items (post-tax) are calculated using an estimated effective federal tax rate of 21% with the exception of goodwill impairment which is not deductible for tax.    
    (3 ) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.        
    (4 ) Net interest margin (TEY) is a non-GAAP financial measure. The Company’s management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure.  In addition, the Company calculates net interest margin without the impact of acquisition accounting net accretion as this can fluctuate and it’s difficult to provide a more realistic run-rate for future periods.
    (5 ) Efficiency ratio is a non-GAAP measure. The Company’s management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue. In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most directly comparable GAAP financial measures.
           

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