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  • MIL-OSI Canada: Full speed ahead: fast-tracking permit approvals

    [. Alberta’s new “Automatic Yes Toolkit” for permits makes life better for Albertans by reducing red tape, speeding up project timelines and creating more opportunities for businesses and individuals to thrive – all while ensuring health, safety and environmental protections remain in place. By addressing long wait times and improving efficiency, this initiative aims to prevent project delays, create jobs and drive economic growth across the province.

    The Automatic Yes Toolkit enables government to identify permits that can benefit from faster decision-making processes. For lower-risk and routine activities such as Water Act applications, permit approvals will be replaced with clear operating requirements, freeing up resources to focus on more complex applications. For permits requiring detailed reviews, the toolkit introduces mandatory time limits for government decisions, providing greater certainty for applicants.

    “While we have met our commitment to reduce red tape by 33 per cent, we are continuing to implement leaner, streamlined processes by adopting an Automatic Yes Toolkit. Business leaders and Albertans have told us that wait times for permit decisions can take too long, so we’ve designed the toolkit to address those concerns, while still maintaining the appropriate health, safety and environmental protections.”

    Dale Nally, Minister, Service Alberta and Red Tape Reduction

    The Automatic Yes toolkit incorporates three approaches – Code of Practice (COP), Permit-by-Rule (PBR), and Shot Clock – to be used as additional policy tools to support reduction in permit decision timelines. Each approach is tailored to degrees of regulatory risk, ranging from low-risk activities that pose minimal harm to the environment and public health and safety, to medium-risk activities that may require more extensive review and oversight.

    As these tools are implemented, Albertans applying for permits can expect shorter wait times and fewer project delays. This ensures that government resources are allocated more effectively while safeguarding public health, safety and the environment.

    “The Automatic Yes Toolkit is a big step forward for Alberta’s small businesses. By speeding up permit approvals, entrepreneurs will have more time to focus on growth and job creation instead of navigating bureaucracy. This kind of efficiency is exactly what businesses need to thrive.”

    Dan Kelly, president, Canadian Federation of Independent Businesses

    Even with the Automatic Yes Toolkit in place, Alberta’s government will retain the ability to deny permits when necessary and appropriate, as well as undertake the appropriate enforcement actions when violations have occurred.

    Quick facts

    • The Automatic Yes Toolkit will only be applied to permits categorized as high-risk activities if all assurances can still be met.
    • Alberta already leverages COPs and PBRs for various activities, and various jurisdictions across North America, such as Ontario, British Columbia and Texas, have also applied some of the “Automatic Yes” approaches to streamline their permit approval processes. However, with the introduction of the Automatic Yes Toolkit, Alberta now has a more comprehensive approach for streamlining and accelerating permit approvals.

    Related information

    • Cutting Red Tape
    • Implementing red tape reduction

    Multimedia

    • Watch the news conference

    MIL OSI Canada News –

  • MIL-OSI New Zealand: Speed limit reduction reversals begin

    Source: New Zealand Government

    Reversals to Labour’s blanket speed limit reductions begin tonight and will be in place by 1 July, says Minister of Transport Chris Bishop.

    “The previous government was obsessed with slowing New Zealanders down by imposing illogical and untargeted speed limit reductions on state highways and local roads.

    “National campaigned on reversing the blanket speed limit reductions at the last election, and over 65 per cent of submitters during consultation on the Land Transport Rule: Setting of Speed Limits 2024 agreed.

    “Reversing the speed limit reductions where safe to do so is also part of the National-ACT coalition agreement.

    “Where Labour was about slowing New Zealand down, the coalition Government is all about making it easier for people and freight to get from A to B as quickly and efficiently as possible, which will help drive economic growth and improved productivity.”

    The Land Transport Rule: Setting of Speed Limits 2024 requires NZTA and local councils to reverse all speed limits lowered since January 2020 on several categories of roads back to their previous limits by 1 July 2025.

    “Labour’s Kieran McAnulty said recently that as Associate Transport Minister under the previous government he’d asked NZTA to review the SH2 Wairarapa speed limit, and that they told him no. It seems he just shrugged and accepted that,” Mr Bishop says.

    “Today provides a classic example of our Government’s determination to stop letting government agencies put things in the too-hard basket, and instead to push forward for actual results.

    “Today provides a classic example of our Government’s determination to stop letting government agencies put things in the too-hard basket, and instead to push forward for actual results.

    “The first state highway to reverse will be the section of SH2 between Featherston and Masterton, where the speed limit reduction in early 2023 under the previous government met with huge community hostility – the exact road that Kieran McAnulty failed to get any action on. This change which will take effect overnight tonight.

    “To ensure this process happens efficiently, over the next few months NZTA will incorporate the automatic speed reversal work alongside planned maintenance and project works.

    “I have also released a further list of 49 sections of state highway for further public consultation so local communities can have their say on keeping their current lower speed limit or returning to the previous higher speed. Public consultation on those sections begins tomorrow and will run for six weeks. 

    “In terms of local road changes, councils have until 1 May 2025 to advise NZTA of the specified roads subject to reversal under the new Rule.”

    The new rule requires reduced variable speed limits outside schools during pick up and drop off times.

    “We are prioritising the safety of Kiwi kids by introducing reduced speed limits outside schools during pick-up and drop-off times. We want to see these changes brought about quickly,” Mr Bishop says.

    “By 1 July 2026, local streets outside a school will be required to have a 30km/h variable speed limit. Rural roads that are outside schools will be required to have variable speed limits of 60km/h or less.

    “Throughout the world, 50km/h is used as the right speed limit to keep urban roads flowing smoothly and safely. The evidence on this is clear – comparable countries with the lowest rates of road deaths and serious injuries, such as Norway, Denmark, and Japan, have speed limits of 50km/h on their urban roads, with exceptions for lower speed limits.

    “These countries have strong road safety records, targeting alcohol, drugs, and speeding. Our Government has a clear focus on improving road safety outcomes with clear targets to ensure Police are focussed on the most high-risk times, behaviours, and locations.”

    Notes to editor:

    Attached fact sheets:

    • 38 sections of state highway for speed limit auto reversal
    • 49 sections of state highway for community consultation

    Under the Setting of Speed Limits Rule signed by previous Transport Minister Simeon Brown in September 2024, the NZ Transport Agency (NZTA) and councils are required to reverse all speed limits lowered since January 2020 on several categories of specified roads back to their previous limits by 1 July 2025.

    To give effect to the new Rule, NZTA will automatically reverse speed limits on 38 sections of the state highway network back to their previous higher speed limit, and publicly consult on a further 49 sections before final decisions are made whether to reverse them or not.

    Public consultation on 49 sections of state highway will begin on 30 January 2025 and run for six weeks. 

    Further note:

    The reference to Mr McAnulty’s comments regarding SH2 in the Wairarapa is taken from Kate Judson’s article in The Wairarapa Times-Age, Jan 25 2025: Slow road back to 100kph for Wairarapa motorists:

    Labour list MP Kieran McAnulty said he was not convinced SH2 speeds south of Greytown would change by July because the decision rested with NZTA.

    “It wouldn’t surprise me if they said they’ll put it up to 100kph if the road gets improved,” he said.

    “I know how resolute NZTA were on it. I was associate transport minister and looked them in the eye and said, ‘I want you to review the speed limit,’ and they said no.”

    MIL OSI New Zealand News –

  • MIL-OSI USA: A Vision for Missouri’s Future: Strengthening Integrity and Service

    Source: US State of Missouri

     

     

    Opinion Editorial Available for Immediate Distribution: January 28, 2025

               

    A Vision for Missouri’s Future: Strengthening Integrity and Service

    By Missouri Secretary of State Denny Hoskins, CPA

    It is with great humility and excitement that I step into the role of Missouri’s 41st secretary of state. My journey from the legislature to this office has given me a deep appreciation for the responsibilities entrusted to us by the people of Missouri. I had the honor of speaking before the Missouri Press Association in our state capitol this week. Now, with just over a week on the job, I want to share some reflections and goals as we embark on this journey together.

    One of my core commitments is upholding election integrity. Missourians deserve elections that are secure, transparent, and reflective of their will. To this end, we are auditing voter rolls to ensure they are accurate and free of outdated entries. I have also appointed a new Director of Election Integrity, Nick La Strada, whose expertise will be instrumental in achieving this goal. As we explore policies such as proof of citizenship for voter registration, our focus remains clear: protecting the integrity of our elections while ensuring compliance with the law.

    Another area of focus is securities regulation. Missouri is one of the few states where the secretary of state appoints a Securities Commissioner, and I am proud to have selected Representative Michael O’Donnell, whose financial and markets expertise and leadership will serve Missourians well. Our approach will balance protecting investors, especially seniors, with fostering transparency in financial markets. For example, while we believe individuals should have the freedom to invest in funds that align with their values, clear disclosures are vital to inform investors of the risks and goals associated with their investments, if maximizing shareholder return is not the funds main objective.

    The State Library and Archives are also critical pillars of this office. They serve as custodians of Missouri’s history and enablers of lifelong learning. We will continue to support these essential services while ensuring they remain accessible to all Missourians.

    Lastly, I am committed to engagement and transparency. Former Secretary Jay Ashcroft set a precedent of visiting every county annually and I plan on continuing this tradition. Connecting directly with citizens ensures we understand their needs and concerns. Furthermore, as we improve our digital presence and launch new initiatives like podcasts, we aim to better communicate the great work happening in our state.

    Missouri is a state rich in history, opportunity, and community. As your secretary of state, I am honored to lead an office that touches so many aspects of daily life from supporting businesses to preserving our heritage. Together, we will build a stronger, more transparent, and more prosperous Missouri.

    Thank you for your trust. I look forward to serving you.

    For media inquiries or additional information, please contact:
    Rachael Dunn, Director of Communications
    [email protected]
    JoDonn Chaney, Deputy Director of Communications
    [email protected]


    About Denny Hoskins
    Denny Hoskins, CPA, was elected to the office of Missouri Secretary of State in November 2024. Prior to his election, Hoskins served as a member of the Missouri Senate, where he worked on a variety of initiatives to support Missouri’s economy, improve transparency, and ensure the protection of citizens’ rights. He has a strong background in business and public service and is committed to building a more efficient and accountable government in Missouri.

    Visit www.sos.mo.gov to learn more about the Office of the Missouri Secretary of State.

    MIL OSI USA News –

  • MIL-OSI USA: SECURING MISSOURI’S FUTURE: Governor Kehoe Delivers First State of the State Address

    Source: US State of Missouri

    JANUARY 28, 2025

    Jefferson City — JEFFERSON CITY, MO – Today, Governor Mike Kehoe delivered his first State of the State Address to the Missouri General Assembly, outlining his legislative and budget priorities for Fiscal Year 2026 (FY26).

    Governor Kehoe opened his first address to the 103rd General Assembly by reflecting on lessons learned to stay humble from his mentor, Dave Sinclair, with a commitment to working with the members of the legislature during his time as governor.

    “I said earlier that I will never forget my roots. Well, I’ve sat where you sit. I understand the pressures you face. And I want to work with you—not against you—because I believe we can only secure Missouri’s future if we work together,” said Governor Kehoe.

    Governor Kehoe’s speech focused on the policy priorities that have remained a central focus at the start of his administration, beginning with public safety.

    “Any efforts we may make to improve the lives of Missourians–whether it be education opportunities, cutting taxes, or expanding childcare–none of it matters if Missourians aren’t safe,” Governor Kehoe said. “Securing Missouri’s future begins with public safety.”

    Public Safety

    During his speech, Governor Kehoe discussed the actions his administration took on Inauguration Day, signing six executive orders developed based on input from law enforcement to launch the Safer Missouri initiative.

    To support law enforcement recruitment and retention efforts, Governor Kehoe’s budget recommends funding to bolster the existing Missouri Blue Scholarship Program for law enforcement basic training and $10 million in new funding to assist local communities who prioritize public safety with equipment and training needs through the Blue Shield Program.

    The budget also includes $2.5 million to support the sheriff’s retirement system for another year, and funding for a new crime lab in Cape Girardeau, serving the Missouri State Highway Patrol Troop E region.

    As part of the Safer Missouri initiative, Governor Kehoe urged the General Assembly to pass a comprehensive crime bill that includes increasing penalties for crimes like violent rioting and fleeing from law enforcement in a vehicle, cracking down on criminals who participate in reckless stunt driving and street racing, and efforts to increase oversight and accountability of the St. Louis Metropolitan Police Department.

    To combat the fentanyl crisis and identify areas of high fentanyl use in schools across the state, Governor Kehoe’s budget includes a $4 million investment for fentanyl testing in wastewater systems at schools. Governor Kehoe also encouraged the legislature to take action on increasing penalties for fentanyl trafficking.

    Economic Development

    Governor Kehoe emphasized his efforts to make Missouri a welcoming state for business investment. From manufacturers, to retail, to Missouri’s sports teams: businesses who provide jobs and opportunities to Missourians are an important part the state’s economic success.

    In order to compete with other states, the Kehoe Administration will focus on reducing taxes and cutting regulations, so families keep more of their own money, and so job creators look at our state to expand and hire more hard-working Missourians.

    Governor Kehoe announced that he has directed the Missouri Department of Revenue to work with his staff on a sustainable and comprehensive plan to eliminate the individual income tax once and for all.

    And, knowing that infrastructure and economic development go hand in hand, Governor Kehoe’s budget includes a reappropriation of last year’s 100 million dollars for rural road improvements to ensure all of those funds are invested in rural infrastructure.

    Governor Kehoe’s speech focused largely on solving the biggest challenge to the child care crisis: addressing the current regulatory environment.

    In an effort to make the child care regulations easier to understand and navigate, Governor Kehoe issued Executive Order 25-15, charging the Department of Elementary and Secondary Education-Office of Childhood with a complete re-write of the child care regulations.

    The budget also includes $10 million to offer grant funding opportunities to support partnerships between employers, community partners, and the child care industry to make more child care slots available for Missouri families.

    In an effort to provide timely payments for the child care providers who partner with the state to provide care, providers will receive payments from the state at the beginning of the month on enrollment, starting in fiscal year 2026.

    To build on Missouri’s career and technical education opportunities, Governor Kehoe’s budget includes $15 million in new funding to address equipment, space, and operational needs of career and technical centers across the state, as well as an increase of $5 million on an annual basis to support increased operational costs.

    The budget includes increased funding to expand career counseling to more high schools across the state, so that students can talk to school counselors about their future career path, whether that includes college or not.

    Governor Kehoe also signed Executive Order 25-16 establishing the Governor’s Workforce of the Future Challenge, instructing DESE to put a plan in place for better coordination among key stakeholders, including K-12 schools, local business and industry, and higher education to improve the state’s career and technical education programs and infrastructure.

    Agriculture

    Securing the future of agriculture also means investing in the next generation. Governor Kehoe’s budget includes $800,000 in permanent funding for Missouri FFA.

    Additionally, the budget includes $55 million in new bonding to support the construction of a 40,000 square foot covered multi-use livestock barn and 80,000 square foot stalling barn to house equine and other livestock at the Missouri State Fair’s new arena, which was previously supported by the legislature and is now under construction.

    Education

    Governor Kehoe is a proud supporter of education in all of its forms–public schools, private schools, charter schools–as long Missouri’s children are getting a quality education that best meets their needs.

    To expand school choice, Governor Kehoe urged the General Assembly to pass voluntary open enrollment in public schools.

    Governor Kehoe’s budget also includes $50 million in general revenue funding to bolster the ESA program.

    This year, Governor Kehoe’s budget recommends a $200 million increase for the Foundation Formula, the largest increase since the current Formula was created. And, over $370 million to fully fund the state’s commitment for school transportation needs. For teachers, the budget includes $33 million to fund teacher salaries. Additionally, the budget includes $30 million for Small School Grants to support the continued success of our small rural school districts, the heartbeat of their communities.

    Governor Kehoe also signed Executive Order 25-14 establishing the School Funding Modernization Task Force to recommend changes to the Foundation Formula to better serve students and families.

    Government Improvements 
    To continue to recruit and retain quality state team members, Governor Kehoe announced a statewide time of service pay plan increase for state employees.

    Governor Kehoe also previewed action on DEI programs in state government and support for creating Missouri’s own version of a DOGE initiative. He committed to working with the General Assembly on these efforts in the coming weeks.

    During his speech, Governor Kehoe recognized special guests for their achievements and commitment to the people of Missouri:

    Special Guests of the Governor

    • Lizzy Schott
    • Safer Missouri Initiative Group
    • Alena Malone
    • Adeline Thessen
    • USS Missouri Crew Members  

    Governor Kehoe emphasized there are safer choices than abortion in Missouri and committed to helping pregnant women know these exist, including the Pregnancy Resource Centers across the state. The budget includes support for alternatives to abortion with $4 million  in additional funding to benefit expecting and new mothers, a more than 50% increase to existing services.

    Governor Kehoe closed the speech thanking veterans and service members, adding that his proposed budget includes an additional $10 million of general revenue funding to our Missouri Veterans Homes.

    “Our work in this building is only possible because of those who came before us: the sacrifices of our brave service men and women,” said Governor Kehoe. “Under the Kehoe Administration, NO veterans home will close due to a lack of state funding.”

    To view a full transcript of Governor Kehoe’s speech and special guest bios, please see attachments. To view the FY2026 Budget in Brief, please see attachment.

    The FY26 Executive Budget will be available here at 3:00 p.m. To view the executive orders signed by Governor Kehoe, visit this link.

    Pictures from today’s events, including special guests, will be available on Flickr. An archived video of the 2025 State of the State is available at mo.gov/live.

    ###

    MIL OSI USA News –

  • MIL-OSI USA: U.S. News & World Report Ranks UConn’s Graduate Business Programs Among the Best Online

    Source: US State of Connecticut

    Three UConn School of Business programs are ranked among the 2025 Best Online (Non-MBA) Programs by U.S. News & World Report.

    The Financial Technology (FinTech), Human Resources Management (MSHRM), and Master of Science in Accounting (MSA) ranked as No. 12 in the nation. The recognition is particularly gratifying because the first two programs are newcomers to the rankings, having just become eligible for assessment. The MSA program is a long-established program.

    “We are proud to be ranked 12th by U.S. News & World Report in the Best Online Non-MBA Graduate Programs category. This prestigious recognition highlights our commitment to academic excellence and student success and our strategic investment in online education,’’ said professor Jose M. Cruz, Associate Dean for Graduate Programs at the School of Business.

    “By leveraging state-of-the-art technology, innovative course design, and the expertise of our world-class faculty, we have created an engaging, flexible, and high-impact learning environment,’’ Cruz said. “This achievement reaffirms our dedication to empowering professionals to thrive in an ever-evolving global landscape.”

    This year’s U.S. News ranking evaluated more than 1,600 online bachelor’s and master’s degree programs using metrics specific to online learning, including student engagement and program quality. This survey included only non-MBA programs.

    Promotions, Camaraderie, Excellence Highlight Programs

    The 36-credit master’s degree in FinTech offers a mix of analytics, technology and business courses to equip students to lead in fields such as finance, banking, insurance, medicine, regulations and real estate.

    “The UConn MS FinTech program has, since its inception, sought to be a global program in terms of its reach, experiential opportunities and reputation,’’ said professor John Wilson, the program’s academic director. “The rapid development and deployment of a world class online offering for this degree puts UConn as one of the only FinTech programs to offer students choice in their learning modality.’’

    Human Resources Management, a 33-credit master’s degree program, delivers the knowledge and skills to lead an HR department through strategic planning and employee relationship management.

    In the program’s most recent exit survey, 71% of graduating respondents reported receiving a promotion or new position while in the program.

    “The cohort-based format of the MSHRM program means that students complete their coursework as a group. This enables students to develop strong relationships with one another,’’ said professor Travis Grosser, who has led the department. “These relationships form a foundation for peer learning and support. Indeed, many close and lasting friendships have been formed in the MSHRM program. We promote relationship-building by offering informal events outside of the classroom.’’

    Meanwhile, the 30-credit MSA program provides the additional accounting credit hours to complete the educational requirements to earn a CPA license. The program focuses on issues relevant to today’s accounting professionals and is accredited by the Association to Advance Collegiate Schools of Business (AACSB) and led by full-time faculty and other industry experts. The program celebrated its 25th anniversary last year.

    “The MSA Program at UConn has maintained a long tradition of high achievement because of the consistently high quality of the faculty, staff, and students who work diligently towards excellence,’’ said professor Joshua Racca, director of the MSA program.

    MIL OSI USA News –

  • MIL-OSI Security: McKeesport Felon Pleads Guilty to Possessing Firearm

    Source: Office of United States Attorneys

    PITTSBURGH, Pa. – A former resident of McKeesport, Pennsylvania, pleaded guilty in federal court to a violation of federal firearms laws, Acting United States Attorney Troy Rivetti announced today.

    Paul Kirk, 29, pleaded guilty before United States District Judge Cathy Bissoon to one count of possession of a firearm and ammunition by a convicted felon.

    In connection with the guilty plea, the Court was advised that, on August 22, 2023, Kirk fled from McKeesport Police officers during a traffic stop. Upon Kirk’s being taken into custody a short distance from the traffic stop, officers found a loaded handgun in the defendant’s pocket. Kirk has multiple previous felony convictions. Federal law prohibits possession of a firearm or ammunition by a convicted felon.

    Judge Bissoon scheduled sentencing for May 29, 2025. The law provides for a maximum total sentence of up to 15 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.

    Pending sentencing, the court ordered that the defendant remain in custody.

    Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.

    The Bureau of Alcohol, Tobacco, Firearms and Explosives and McKeesport Police Department conducted the investigation that led to the prosecution of Kirk.

    MIL Security OSI –

  • MIL-OSI Security: Belcourt Man Sentenced to Life in Federal Prison for Sexual Abuse and Domestic Assault by Strangulation

    Source: Office of United States Attorneys

    Fargo – United States Attorney Mac Schneider announced that Justin Lee Baker, age 44, from Belcourt, ND, appeared in federal court on January 28, 2025, before District Court Judge Peter Welte and was sentenced to life in federal prison, and $400 in special assessment fees for the offenses of sexual abuse by threat of death or serious bodily injury (two counts) and assault of a spouse, intimate partner, or dating partner by strangulation (two counts).

    As noted in court documents, in or about August 2020, law enforcement in Belcourt, ND, was dispatched to a residence for a report of a domestic disturbance.  Jane Doe 1 reported she had been severely beaten by her boyfriend, identified as Baker. Law enforcement observed extensive bruising throughout Jane Doe 1’s face, neck, chest, arms, and legs, as well as a laceration on top of her head.  In or about August 2023, Jane Doe 1 was interviewed by the Federal Bureau of Investigation regarding the incident.  In addition to describing the physical assault she previously reported, Jane Doe 1 described being sexually assaulted by Baker including him using objects causing excruciating pain.  Jane Doe 1 believed Baker was going to kill her. Jane Doe 1 indicated Baker had strangled her and she had lost consciousness during the course of the assault. 

    Through the course of the investigation, the Federal Bureau of Investigations identified several other women physically and sexually assaulted by Baker, including Jane Doe 2.  Jane Doe 2 was interviewed in August 2023.  She described being held captive in Baker’s camper and being physically and sexually assaulted.  Jane Doe 2 described Baker “wailing” on her, strangling her, and sexually assaulting her with his penis.  Jane Doe 2 stated the assault caused her to lose consciousness and extreme pain. Jane Doe 2 stated Baker threatened she would be “six feet under” and Jane Doe 2 feared Baker would kill her. 

    “This sentence is a fitting one considering the brutality and depravity of the defendant’s crimes against his domestic partners and women in the community,” Schneider said. “Domestic violence and sexual abuse are serious crimes, and as this case shows we will not hesitate to bring abusers to federal court to face justice where our office has jurisdiction. I give credit to our career prosecutors and partners in the FBI for obtaining this result and removing this individual from the community.”  

    “The horrendous sexual abuse committed by Justin Lee Baker is cruel and reprehensible,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “This sentencing sends a clear message: the FBI will relentlessly pursue those who prey on others, especially the innocent and defenseless, and ensure they are held accountable.”

    This case was investigated by the Federal Bureau of Investigation.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Member of Violent Gang Pleads Guilty to Racketeering and Firearm and Drug Trafficking Offenses

    Source: Office of United States Attorneys

    BOSTON – A Boston-area man pleaded guilty today to his role in Cameron Street, a violent Boston gang.

    Jonathan Darosa, a/k/a “Jeezy,” 31, of Boston, pleaded guilty to one count of conspiracy to participate in a racketeering enterprise (more commonly referred to as RICO or racketeering conspiracy); one count of being a felon in possession of firearm and ammunition; one count of distribution of and possession with intent to distribute cocaine and oxycodone; and one count of distribution of and possession with intent to distribute cocaine. U.S. Senior District Court Judge William G. Young scheduled sentencing for May 1, 2025.

    Over the course of a two-year investigation, Darosa was identified as a member of Cameron Street. On two separate occasions, Darosa distributed cocaine and oxycodone to a cooperating witness. Additionally, in an interaction with law enforcement, Darosa threatened officers, telling them “If I had a gun on me, I would have shot at you,” “I am not going back to jail,” and “I keep it on my hip.” In April 2021 in Dorchester, local law enforcement observed Darosa wearing a “waist bag” across his chest – law enforcement had recovered firearms from similar bags in the past. During a search of Darosa’s person, a Taurus 9 millimeter semi-automatic pistol containing 12 rounds of assorted 9 millimeter ammunition, including one round in the chamber, was recovered.

    According to court documents, Cameron Street is a violent gang based largely in the Dorchester section of Boston that used violence and threats of violence to preserve, protect and expand its territory, promote a climate of fear and enhance its reputation.

    Darosa has been convicted on three prior occasions of unlawful possession of a firearm, including a 2016 conviction in Suffolk Superior Court for which he served a three-year prison sentence.

    The charge of RICO conspiracy and conspiracy to interfere with commerce by force or violence each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of distribution of cocaine and oxycodone provides for a sentence of up to 20 years in prison, at least three years of supervised release up to life and a fine of $1 million. The charge of distribution of and possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, at least three years of supervised release up to life and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

    United States Attorney Leah B. Foley; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Feld Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Charles Dell’Anno of the Narcotics & Money Laundering Unit are prosecuting the case.

    This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

    The remaining defendants named in the indictment are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI Security: Lower Burrell Man Sentenced for Fraudulent Use of Neighbor’s Credit Cards

    Source: Office of United States Attorneys

    PITTSBURGH, Pa. – A resident of Lower Burrell, Pennsylvania, has been sentenced in federal court to three years of probation on his conviction of use of unauthorized access devices, Acting United States Attorney Troy Rivetti announced today.

    Senior United States District Judge David Stewart Cercone imposed the sentence on Jonathan Fry, 44, on January 23, 2025.

    According to information presented to the Court, in April 2019, Fry obtained and used an elderly neighbor’s credit cards and personal identification information, including the neighbor’s date of birth and social security number, in order to make fraudulent and unauthorized transactions. This included obtaining a vehicle loan and insurance, opening accounts, and applying for other credit cards in the victim’s name, ultimately causing losses of more than $40,000.

    Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.

    Acting United States Attorney Rivetti commended the United States Postal Inspection Service for the investigation leading to the successful prosecution of Fry.

    MIL Security OSI –

  • MIL-OSI Security: Repeat Offender from South Portland Pleads Guilty to Possessing Child Sexual Abuse Material

    Source: Office of United States Attorneys

    PORTLAND, Maine: A South Portland man pleaded guilty in U.S. District Court in Portland today to possessing child sexual abuse material.

    According to court records, in April 2023, agents from Homeland Security Investigations (HSI) executed a federal search warrant at the South Portland residence of Sheldon Rembert, 32, locating Rembert in the bedroom. An agent recovered a smartphone from the bedroom, and during an interview, Rembert admitted that child sexual abuse material would be found on the phone and that he had downloaded the images and videos. Forensic examination of the device found images and videos of children as young as eight years old being sexually abused. In 2020, Rembert was convicted in Cumberland County Superior Court of possessing explicit material of a minor.

    Rembert faces 10-20 years in prison and a maximum fine of $250,000, followed by five years to life of supervised release. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    HSI investigated the case.

    To report an incident involving the possession, distribution, receipt or production of child sexual abuse material: Child sexual abuse material – referred to in legal terms as “child pornography” – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. In 2023, the National Center for Missing & Exploited Children received 36 million reports of the possession, manufacture, or distribution of child sexual abuse materials. To file a report with NCMEC, go to https://report.cybertip.org or call 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.

    Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psc.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Three Foreign Nationals Charged With Immigration Offenses

    Source: Office of United States Attorneys

    Burlington, Vermont – The United States Attorney’s Office stated that Saul Mazariegos-Estrada, 29, of El Tejar, Guatemala, has been charged by criminal complaint with the illegal transportation of aliens, and that Byron Sicajau Socoy, 40, of El Tejar, Guatemala, and Christian Rafael Hernandez Villa, 34, of Jalisco, Mexico, have been charged by criminal complaint with being aliens who eluded examination or inspection by immigration officers. The term “alien” is defined by statute to mean a person who is not a citizen or national of the United States.

    On January 27, 2025, all three defendants appeared before United States Magistrate Judge Kevin J. Doyle. Judge Doyle ordered that Mazariegos-Estrada be detained pending a detention hearing. At their initial appearances, Sicajau Socoy and Hernandez Villa pleaded guilty to the allegations in their respective criminal complaints and received time-served sentences. Sicajau Socoy and Hernandez Villa had faced up to 6 months’ imprisonment.

    According to court records, on January 25, 2025, at approximately 9:15 a.m., U.S. Border Patrol agents received a report from a concerned citizen who had observed multiple subjects crossing a remote dirt road approximately one mile south of the United States-Canada border in the area of Newport, Vermont.

    Border Patrol agents responded to the area and discovered footprints in the snow where the concerned citizen had reported the crossing. Shortly thereafter, Border Patrol agents conducting surveillance in the area observed a vehicle travelling at a high rate of speed on a remote driveway. Border Patrol agents began following the vehicle, which had Virginia license plates. Agents observed multiple individuals in the back seat and noted that the windows of the vehicle were foggy, which to the agents indicated that the passengers had been exhausting energy, features which the agents had observed in multiple other human smuggling events.

    Border Patrol agents stopped the vehicle and encountered, in the front seat, Mazariegos-Estrada, who stated that he was a Guatemalan citizen and that he did not possess immigration documents to enter or remain in the United States. In the rear, agents encountered Sicajau Socoy and Hernandez Villa, who both admitted to illegally entering the United States and that neither had immigration documents allowing them to enter or remain in the United States. All three were taken into custody and transported to the Border Patrol Station.

    The United States Attorney’s Office emphasizes that a criminal complaint contains allegations only and that Mazariegos-Estrada is presumed innocent until and unless proven guilty. Mazariegos-Estrada faces up to five years’ imprisonment if convicted. The actual sentence, however, would be determined by the District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.

    Acting United States Attorney Michael P. Drescher commended the investigatory efforts of the United States Border Patrol.

    The prosecutors are Assistant United States Attorneys Jonathan A. Ophardt and Andrew C. Gilman. Mazariegos-Estrada is represented by Assistant Federal Public Defender Emily Kenyon. Sicajau Socoy was represented by Jason J. Sawyer, Esq., and Hernandez Villa was represented by Kevin M. Henry, Esq.

    MIL Security OSI –

  • MIL-OSI: Sunrun Prices $629 million Senior Securitization of Residential Solar & Battery Systems

    Source: GlobeNewswire (MIL-OSI)

    SAN FRANCISCO, Jan. 28, 2025 (GLOBE NEWSWIRE) — Sunrun (Nasdaq: RUN), the nation’s leading provider of clean energy as a subscription service, today announced it has priced a securitization of leases and power purchase agreements. The securitization is Sunrun’s thirteenth securitization since 2015 and first issuance in 2025.

    “Sunrun’s first securitization transaction of 2025, the second largest in the industry’s history, demonstrates our continued strong execution in the capital markets. Our ability to consistently access deep pools of competitively priced capital to fuel growth is supported by the quality of our assets and our proven track record as an originator and servicer,” said Danny Abajian, Sunrun’s Chief Financial Officer.

    The transaction was structured with three separate classes of A rated notes (the “Class A-1”, “Class A-2A”, and Class “A-2B” respectively and together the “Class A”) and a single class of BB rated notes (the “Class B”), which were retained. The $102.0 million Class A-1 notes and the $276.5 million Class A-2A notes were both marketed in a public asset backed securitization whereas the $250.0 million Class A-2B notes were privately placed. The Class A-1 and Class A-2A notes were oversubscribed and carry coupons of 5.99% and 6.41%, respectively. The Class A-1 notes priced at a spread of 170 bps and a 6.035% yield. The Class A-2A notes priced at a spread of 200 bps and a 6.465% yield. The Class A-1 and Class A-2A have a weighted average spread of 192 bps which represents an improvement of 42 bps from Sunrun’s 2024-3 asset backed securitization in September 2024. The initial balance of the Class A notes represents a 65.3% advance rate on the Securitization Share of ADSAB (present value using a 6% discount rate). The expected weighted average life is 4.58 years for the Class A-1 notes and 7.12 years for the Class A-2A notes. Both classes of notes have an Anticipated Repayment Date of April 30, 2032, and a final maturity date of April 30, 2060.

    Similar to prior transactions, Sunrun anticipates raising additional subordinated subsidiary-level non-recourse financing secured, in part, by the distributions from the retained Class B notes, which is expected to increase the cumulative advance rate obtained by Sunrun.

    The notes are backed by a diversified portfolio of 39,458 systems distributed across 20 states, Washington D.C. and Puerto Rico and 83 utility service territories. The weighted average customer FICO score is 738. The transaction is expected to close by February 5, 2025.

    ATLAS SP Partners (“ATLAS SP”) was the sole structuring agent and served as joint bookrunner along with BofA Securities, Morgan Stanley, MUFG and TD Securities. First Citizens Capital Securities and ING served as co-managers for the securitization.

    “ATLAS SP was pleased to work with Sunrun again as the sole structuring agent on this securitization transaction,” said Spencer Hunsberger, Head of Energy Origination at ATLAS SP. “Through our deep partnership with Sunrun, we have demonstrated ATLAS’ unique capabilities to structure, place and commit to large transactions in an accelerated and efficient process for the capital markets. We look forward to continuing to support Sunrun as the solar industry continues to become more mainstream for securitized products.”

    This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

    About Sunrun

    Sunrun Inc. (Nasdaq: RUN) revolutionized the solar industry in 2007 by removing financial barriers and democratizing access to locally-generated, renewable energy. Today, Sunrun is the nation’s leading provider of clean energy as a subscription service, offering residential solar and storage with no upfront costs. Sunrun’s innovative products and solutions can connect homes to the cleanest energy on earth, providing them with energy security, predictability, and peace of mind. Sunrun also manages energy services that benefit communities, utilities, and the electric grid while enhancing customer value. Discover more at www.sunrun.com.

    About ATLAS SP Partners

    ATLAS SP is a global investment firm providing stable capital, financing, advisory and institutional products to market participants seeking innovative and bespoke structured credit and asset backed solutions. We’re proud to build upon a legacy of client excellence that includes certainty of execution, deep expertise and full-service capabilities across the asset management landscape. For more information, visit www.atlas-sp.com.

    Investor & Analyst Contact:
    Patrick Jobin
    SVP, Deputy CFO & Investor Relations Officer
    investors@sunrun.com

    Media Contact:
    Wyatt Semanek
    Director, Corporate Communications
    press@sunrun.com

    ATLAS Contact:
    (212) 355-4449
    atlas-sp@joelefrank.com

    The MIL Network –

  • MIL-OSI: Univest Securities, LLC Announces Closing of $1.92 Million Warrant Inducement for its Client PMGC Holdings Inc. (NASDAQ: ELAB)

    Source: GlobeNewswire (MIL-OSI)

    New York, New York, Jan. 28, 2025 (GLOBE NEWSWIRE) — Univest Securities, LLC (“Univest”), a member of FINRA and SIPC, and a full-service investment bank and securities broker-dealer firm based in New York, today announced the completion of the previously announced warrant inducement with existing institutional investors for its client PMGC Holdings Inc. (formerly Elevai Labs Inc.) (the “Company” or “PMGC”) (Nasdaq: ELAB), a diversified holding company, for the exercise of certain outstanding Series A warrants that the Company issued on September 24, 2024.

    Pursuant to the warrant inducement agreement, the investors have agreed to exercise the outstanding warrants to purchase an aggregate of 969,386 shares of the Company’s common stock at an amended exercise price of $2.00. The gross proceeds from the exercise of the warrants are expected to be approximately $1.9 million, prior to deducting placement agent fees and estimated offering expenses.

    The Company also agreed to issue to the investors unregistered new warrants to purchase an aggregate of 969,386 shares of the Company’s common stock with an exercise price of $2.75 per share (the “New Warrants”). The New Warrants are exercisable upon shareholder approval and will expire five years from the date of shareholder approval.

    The Company has agreed to file a registration statement within thirty (30) days with the Securities and Exchange Commission (“SEC”) covering the resale of the shares of common stock issuable upon exercise of the New Warrants.

    Univest Securities, LLC is acting as the exclusive financial advisor for the transaction.

    This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

    About Univest Securities, LLC

    Registered with FINRA since 1994, Univest Securities, LLC provides a wide variety of financial services to its institutional and retail clients globally including brokerage and execution services, sales and trading, market making, investment banking and advisory, wealth management. It strives to provide clients with value-add service and focuses on building long-term relationship with its clients. For more information, please visit: www.univest.us.

    About PMGC Holdings Inc.

    PMGC Holdings Inc. is a diversified holding company that manages and grows its portfolio through strategic acquisitions, investments, and development across various industries. Currently, our portfolio consists of three wholly owned subsidiaries: Northstrive Biosciences Inc., PMGC Research Inc., and PMGC Capital LLC. We are committed to exploring opportunities in multiple sectors to maximize growth and value. For more information, please visit https://www.pmgcholdings.com.

    Forward-Looking Statements

    This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as “may, “will, “intend,” “should,” “believe,” “expect,” “anticipate,” “project,” “estimate” or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company’s expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the uncertainties related to market conditions and the completion of the initial public offering on the anticipated terms or at all, and other factors discussed in the “Risk Factors” section of the registration statement filed with the SEC. For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company’s filings with the SEC, which are available for review at www.sec.gov. Univest Securities LLC and the Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

    For more information, please contact:
    Univest Securities, LLC
    Edric Guo
    Chief Executive Officer
    75 Rockefeller Plaza, Suite 18C
    New York, NY 10019
    Phone: (212) 343-8888
    Email: info@univest.us

    The MIL Network –

  • MIL-OSI: First Busey Corporation Announces 2024 Fourth Quarter Earnings

    Source: GlobeNewswire (MIL-OSI)

    CHAMPAIGN, Ill., Jan. 28, 2025 (GLOBE NEWSWIRE) — First Busey Corporation (Nasdaq: BUSE)

    Net Income of $28.1 million
    Diluted EPS of $0.49

    FOURTH QUARTER 2024 HIGHLIGHTS

    • Adjusted net income1 of $30.7 million, or $0.53 per diluted common share
    • Adjusted noninterest income1 of $35.4 million, or 30.3% of total revenue
    • Record high quarterly and annual revenue of $17.0 million and $65.0 million, respectively, for the Wealth Management segment
    • Tangible book value per common share1 of $17.88 at December 31, 2024, compared to $16.62 at December 31, 2023, a year-over-year increase of 7.6%
    • Tangible common equity1 increased to 8.76% of tangible assets at December 31, 2024, compared to 7.75% at December 31, 2023
    • Received stockholder approvals for the CrossFirst Bankshares, Inc. merger in December 2024, followed by remaining requisite regulatory approvals in January 2025

    For additional information, please refer to the 4Q24 Earnings Investor Presentation.

    MESSAGE FROM OUR CHAIRMAN & CEO

    Fourth Quarter Financial Results

    Net income for First Busey Corporation (“Busey,” “Company,” “we,” “us,” or “our”) was $28.1 million for the fourth quarter of 2024, or $0.49 per diluted common share, compared to $32.0 million, or $0.55 per diluted common share, for the third quarter of 2024, and $25.7 million, or $0.46 per diluted common share, for the fourth quarter of 2023. Adjusted net income1, which excludes the impact of acquisition and restructuring expenses, was $30.7 million, or $0.53 per diluted common share, for the fourth quarter of 2024, compared to $33.5 million, or $0.58 per diluted common share, for the third quarter of 2024 and $29.1 million or $0.52 per diluted common share for the fourth quarter of 2023. Annualized return on average assets and annualized return on average tangible common equity1 were 0.93% and 10.86%, respectively, for the fourth quarter of 2024. Annualized adjusted return on average assets1 and annualized adjusted return on average tangible common equity1 were 1.01% and 11.87%, respectively, for the fourth quarter of 2024.

    Taking into account our fourth quarter results, full year 2024 net income and adjusted net income1 were $113.7 million, or $1.98 per diluted common share, and $119.8 million, or $2.08 per diluted common share, respectively. Return on average assets and adjusted return on average assets1 were 0.94% and 0.99%, respectively. Return on average tangible common equity1 and adjusted return on average tangible common equity1 were 11.65% and 12.28%, respectively.

    Full year 2024 net income and adjusted net income1 include $6.1 million of net securities losses and $7.7 million in gains on the sale of mortgage servicing rights. Net income and adjusted net income1 for 2024 were further impacted by a one-time deferred tax valuation adjustment of $1.4 million resulting from a change to our Illinois apportionment rate due to recently enacted regulations. Excluding the tax-effected impact of these items, further adjusted net income1 would have been $120.0 million, equating to adjusted diluted earnings per common share1 of $2.09.

    Pre-provision net revenue1 was $38.8 million for the fourth quarter of 2024, compared to $41.7 million for the third quarter of 2024 and $32.9 million for the fourth quarter of 2023. Pre-provision net revenue to average assets1 was 1.28% for the fourth quarter of 2024, compared to 1.38% for the third quarter of 2024, and 1.06% for the fourth quarter of 2023. Adjusted pre-provision net revenue1 was $42.0 million for the fourth quarter of 2024, compared to $44.1 million for the third quarter of 2024 and $40.2 million for the fourth quarter of 2023. Adjusted pre-provision net revenue to average assets1 was 1.38% for the fourth quarter of 2024, compared to 1.46% for the third quarter of 2024 and 1.30% for the fourth quarter of 2023.

    Taking into account our fourth quarter results, full year 2024 pre-provision net revenue1 and adjusted pre-provision net revenue1 were $168.0 million and $167.3 million, respectively. Pre-provision net revenue to average assets1 and adjusted pre-provision net revenue to average assets1 were each 1.39%.

    Our fee-based businesses continue to add revenue diversification. Total noninterest income was $35.2 million for the fourth quarter of 2024, compared to $35.8 million for the third quarter of 2024 and $31.3 million for the fourth quarter of 2023. Fourth quarter results included $0.2 million in net securities losses. Adjusted noninterest income1 was $35.4 million, or 30.3% of operating revenue1, during the fourth quarter of 2024, compared to $35.0 million, or 29.8% of operating revenue1, for the third quarter of 2024 and $30.5 million, or 28.3% of operating revenue1, for the fourth quarter of 2023. Wealth management fees and wealth management referral income included in other noninterest income contributed $17.0 million and payment technology solutions contributed $5.1 million to our consolidated noninterest income for the fourth quarter of 2024, representing 62.3% of adjusted noninterest income1 on a combined basis.

    For the full year 2024, total noninterest income was $139.7 million. Wealth management fees and wealth management referral income included in other noninterest income contributed $65.0 million and payment technology solutions contributed $22.0 million to our consolidated noninterest income for 2024, representing 63.0% of adjusted noninterest income1 on a combined basis.

    Busey views certain non-operating items, including acquisition-related expenses and restructuring charges, as adjustments to net income reported under U.S. generally accepted accounting principles (“GAAP”). Non-operating pretax adjustments for acquisition and restructuring expenses1 were $3.6 million in the fourth quarter of 2024. Busey believes that its non-GAAP measures (which are identified with the endnote labeled as 1) facilitate the assessment of its financial results and peer comparability. For more information and a reconciliation of these non-GAAP measures in tabular form, see “Non-GAAP Financial Information.“

    We remain focused on prudently managing our expense base and operating efficiency in the current operating environment. Noninterest expense was $78.2 million in the fourth quarter of 2024, compared to $75.9 million in the third quarter of 2024 and $75.0 million in the fourth quarter of 2023. Adjusted core expense1, which excludes the amortization of intangible assets and new markets tax credits, acquisition and restructuring expenses, and the provision for unfunded commitments, was $72.6 million in the fourth quarter of 2024, compared to $71.0 million in the third quarter of 2024 and $65.2 million in the fourth quarter of 2023. The year-over-year comparable period growth in adjusted core expense can be attributed primarily to the acquisition of Merchants and Manufacturers Bank Corporation (“M&M”) and general inflationary pressures on compensation and benefits and to a lesser extent certain other expense categories.

    Quarterly pre-tax expense synergies resulting from our acquisition of M&M are anticipated to be $1.6 million to $1.7 million per quarter when fully realized. Quarterly run-rate savings are projected to be achieved by the first quarter of 2025. During the fourth quarter of 2024, we achieved approximately 86% of the full quarterly savings.

    Planned Partnership with CrossFirst

    On August 26, 2024, Busey and CrossFirst Bankshares, Inc. (“CrossFirst”) entered into an agreement and plan of merger (the “merger agreement”) pursuant to which CrossFirst will merge with and into Busey (the “merger”) and CrossFirst’s wholly-owned subsidiary, CrossFirst Bank, will merge with and into Busey Bank. This partnership will create a premier commercial bank in the Midwest, Southwest, and Florida, with 77 full-service locations across 10 states—Arizona, Colorado, Florida, Illinois, Indiana, Kansas, Missouri, New Mexico, Oklahoma, and Texas—and approximately $20 billion in combined assets, $17 billion in total deposits, $14 billion in total loans, and $14 billion in wealth assets under care.

    Under the terms of the merger agreement, CrossFirst stockholders will have the right to receive for each share of CrossFirst common stock 0.6675 of a share of Busey’s common stock. Upon completion of the transaction, Busey’s stockholders will own approximately 63.5% of the combined company and CrossFirst’s stockholders will own approximately 36.5% of the combined company, on a fully-diluted basis. Busey common stock will continue to trade on the Nasdaq under the “BUSE” stock ticker symbol.

    On December 20, 2024, Busey and CrossFirst stockholders voted to approve the merger. On January 16, 2025, Busey received regulatory approval from the Board of Governors of the Federal Reserve System for the merger. Busey and CrossFirst intend to close the merger on March 1, 2025, subject to the satisfaction of the remaining customary closing conditions. The transaction has also been approved by the Illinois Department of Financial and Professional Regulation and the Kansas Office of the State Bank Commissioner. The combined holding company will continue to operate under the First Busey Corporation name and the combined bank will operate under the Busey Bank name. It is anticipated that CrossFirst Bank will merge with and into Busey Bank in mid-2025. At the time of the bank merger, CrossFirst Bank locations will become banking centers of Busey Bank. In connection with this merger, Busey incurred one-time pretax acquisition-related expenses of $2.4 million during the fourth quarter of 2024 and $3.9 million for the full year.

    For further details on the merger, see Busey’s Current Report on Form 8‑K announcing the merger, which was filed with the U.S. Securities and Exchange Commission (the “SEC”) on August 27, 2024.

    Busey’s Conservative Banking Strategy

    Busey’s financial strength is built on a long-term conservative operating approach. That focus will not change now or in the future.

    The quality of our core deposit franchise is a critical value driver of our institution. Our granular deposit base continues to position us well, with core deposits1 representing 96.5% of our deposits as of December 31, 2024. Our retail deposit base was comprised of more than 251,000 accounts with an average balance of $22 thousand and an average tenure of 16.9 years as of December 31, 2024. Our commercial deposit base was comprised of more than 32,000 accounts with an average balance of $98 thousand and an average tenure of 12.8 years as of December 31, 2024. We estimate that 30% of our deposits were uninsured and uncollateralized2 as of December 31, 2024, and we have sufficient on- and off-balance sheet liquidity to manage deposit fluctuations and the liquidity needs of our customers.

    Asset quality remains strong by both Busey’s historical and current industry trends. Non-performing assets increased to $23.3 million during the fourth quarter of 2024, representing 0.19% of total assets. The increase relates to one Commercial Real Estate loan that was classified in the fourth quarter of 2023 and was moved to non-accrual during the fourth quarter of 2024. This loan carries a remaining balance of $15.0 million following a $3.0 million charge-off in the fourth quarter of 2024. Busey’s results for the fourth quarter of 2024 include a $1.3 million provision expense for credit losses and a $0.5 million provision release for unfunded commitments. The allowance for credit losses was $83.4 million as of December 31, 2024, representing 1.08% of total portfolio loans outstanding, and providing coverage of 3.59 times our non-performing loan balance. Including the charge-off for the Commercial Real Estate loan mentioned above, Busey’s net charge-offs totaled $2.9 million for the fourth quarter of 2024. As of December 31, 2024, our commercial real estate loan portfolio of investor-owned office properties within Central Business District3 areas was minimal at $2.0 million. Our credit performance continues to reflect our highly diversified, conservatively underwritten loan portfolio, which has been originated predominantly to established customers with tenured relationships with our company.

    The strength of our balance sheet is also reflected in our capital foundation. In the fourth quarter of 2024, our Common Equity Tier 1 ratio4 was 14.10% and our Total Capital to Risk Weighted Assets ratio4 was 18.53%. Our regulatory capital ratios continue to provide a buffer of more than $610 million above levels required to be designated well-capitalized. Our Tangible Common Equity ratio1 was 8.76% during the fourth quarter of 2024, compared to 8.96% for the third quarter of 2024 and 7.75% for the fourth quarter of 2023. Busey’s tangible book value per common share1 was $17.88 at December 31, 2024, compared to $18.19 at September 30, 2024, and $16.62 at December 31, 2023, reflecting a 7.6% year-over-year increase. During the fourth quarter of 2024, we paid a common share dividend of $0.24.

    Community Banking

    In the last two months of 2024, Busey offered a new, short-term Express Microloan product, created to help small businesses thrive. With a competitive 4.99% fixed interest rate, flexible terms and loans of up to $10,000, existing Busey customers with business checking accounts were invited to apply—allowing them to manage expenses, refinance debt, invest in new opportunities, and enhance operations. Busey originated more than 100 Express Microloans in 60-days, meeting the needs of our small business customers.

    As we reflect back on 2024 and look ahead to 2025, we feel confident that we are well positioned to produce quality growth and profitability. The pending CrossFirst transaction fits with our acquisition strategy and we are excited to welcome our CrossFirst colleagues into the Busey family. We are grateful for the opportunities to consistently earn the business of our customers, based on the contributions of our talented associates and the continued support of our loyal stockholders.

        Van A. Dukeman
      Chairman and Chief Executive Officer
      First Busey Corporation
    SELECTED FINANCIAL HIGHLIGHTS (unaudited)
    (dollars in thousands, except per share amounts)
                       
      Three Months Ended   Years Ended
      December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    EARNINGS & PER SHARE AMOUNTS                  
    Net income $ 28,105     $ 32,004     $ 25,749     $ 113,691     $ 122,565  
    Diluted earnings per common share   0.49       0.55       0.46       1.98       2.18  
    Cash dividends paid per share   0.24       0.24       0.24       0.96       0.96  
    Pre-provision net revenue1, 2   38,828       41,744       32,909       167,996       158,502  
    Operating revenue2   116,995       117,688       107,888       460,671       444,034  
                       
    Net income by operating segment:                  
    Banking   30,856       33,221       25,164       117,266       123,853  
    FirsTech   (723 )     (61 )     325       (670 )     830  
    Wealth Management   5,853       5,618       4,233       22,030       18,804  
                       
    AVERAGE BALANCES                  
    Cash and cash equivalents $ 776,572     $ 502,127     $ 608,647     $ 555,281     $ 330,952  
    Investment securities   2,597,309       2,666,269       2,995,223       2,726,488       3,188,815  
    Loans held for sale   6,306       11,539       1,679       8,012       1,885  
    Portfolio loans   7,738,772       7,869,798       7,736,010       7,804,629       7,759,472  
    Interest-earning assets   11,048,350       10,942,745       11,235,326       10,999,424       11,181,010  
    Total assets   12,085,993       12,007,702       12,308,491       12,051,871       12,246,218  
                       
    Noninterest-bearing deposits   2,724,344       2,706,858       2,827,696       2,738,892       3,018,563  
    Interest-bearing deposits   7,325,662       7,296,921       7,545,234       7,301,124       7,052,370  
    Total deposits   10,050,006       10,003,779       10,372,930       10,040,016       10,070,933  
                       
    Federal funds purchased and securities sold under agreements to repurchase   135,728       132,688       182,735       147,786       200,894  
    Interest-bearing liabilities   7,763,729       7,731,459       8,054,663       7,763,084       7,825,459  
    Total liabilities   10,689,054       10,643,325       11,106,074       10,709,447       11,048,707  
    Stockholders’ equity – common   1,396,939       1,364,377       1,202,417       1,342,424       1,197,511  
    Tangible common equity2   1,029,539       994,657       846,948       975,823       838,164  
                       
    PERFORMANCE RATIOS                  
    Pre-provision net revenue to average assets1, 2, 3   1.28 %     1.38 %     1.06 %     1.39 %     1.29 %
    Return on average assets3   0.93 %     1.06 %     0.83 %     0.94 %     1.00 %
    Return on average common equity3   8.00 %     9.33 %     8.50 %     8.47 %     10.23 %
    Return on average tangible common equity2, 3   10.86 %     12.80 %     12.06 %     11.65 %     14.62 %
    Net interest margin2, 4   2.95 %     3.02 %     2.75 %     2.95 %     2.89 %
    Efficiency ratio2   64.45 %     62.15 %     66.89 %     61.76 %     61.65 %
    Adjusted noninterest income to operating revenue2   30.27 %     29.77 %     28.31 %     29.97 %     27.79 %
                       
    NON-GAAP FINANCIAL INFORMATION                  
    Adjusted pre-provision net revenue1, 2 $ 41,958     $ 44,104     $ 40,223     $ 167,317     $ 172,290  
    Adjusted net income2   30,725       33,533       29,123       119,805       126,012  
    Adjusted diluted earnings per share2   0.53       0.58       0.52       2.08       2.24  
    Adjusted pre-provision net revenue to average assets2, 3   1.38 %     1.46 %     1.30 %     1.39 %     1.41 %
    Adjusted return on average assets2, 3   1.01 %     1.11 %     0.94 %     0.99 %     1.03 %
    Adjusted return on average tangible common equity2, 3   11.87 %     13.41 %     13.64 %     12.28 %     15.03 %
    Adjusted net interest margin2, 4   2.92 %     2.97 %     2.74 %     2.92 %     2.87 %
    Adjusted efficiency ratio2   61.40 %     60.50 %     62.98 %     61.03 %     60.68 %

    ___________________________________________

    1. Net interest income plus noninterest income, excluding securities gains and losses, less noninterest expense.
    2. See “Non-GAAP Financial Information” for reconciliation.
    3. For quarterly periods, measures are annualized.
    4. On a tax-equivalent basis, assuming a federal income tax rate of 21%.
    CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
    (dollars in thousands, except per share amounts)
               
      As of
      December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    ASSETS          
    Cash and cash equivalents $ 697,659     $ 553,709     $ 719,581  
    Debt securities available for sale   1,810,221       1,818,117       2,087,571  
    Debt securities held to maturity   826,630       838,883       872,628  
    Equity securities   15,862       10,315       9,812  
    Loans held for sale   3,657       11,523       2,379  
               
    Commercial loans   5,552,288       5,631,281       5,635,048  
    Retail real estate and retail other loans   2,144,799       2,177,816       2,015,986  
    Portfolio loans   7,697,087       7,809,097       7,651,034  
               
    Allowance for credit losses   (83,404 )     (84,981 )     (91,740 )
    Restricted bank stock   49,930       6,000       6,000  
    Premises and equipment, net   118,820       120,279       122,594  
    Right of use assets   10,608       11,100       11,027  
    Goodwill and other intangible assets, net   365,975       368,249       353,864  
    Other assets   533,677       524,548       538,665  
    Total assets $ 12,046,722     $ 11,986,839     $ 12,283,415  
               
    LIABILITIES & STOCKHOLDERS’ EQUITY          
    Liabilities          
    Deposits:          
    Noninterest-bearing deposits $ 2,719,907     $ 2,683,543     $ 2,834,655  
    Interest-bearing checking, savings, and money market deposits   5,771,948       5,739,773       5,637,227  
    Time deposits   1,490,635       1,519,925       1,819,274  
    Total deposits   9,982,490       9,943,241       10,291,156  
               
    Securities sold under agreements to repurchase   155,610       128,429       187,396  
    Short-term borrowings   —       —       12,000  
    Long-term debt   227,723       227,482       240,882  
    Junior subordinated debt owed to unconsolidated trusts   74,815       74,754       71,993  
    Lease liabilities   11,040       11,470       11,308  
    Other liabilities   211,775       198,579       196,699  
    Total liabilities   10,663,453       10,583,955       11,011,434  
               
    Stockholders’ equity          
    Retained earnings   294,054       279,868       237,197  
    Accumulated other comprehensive income (loss)   (207,039 )     (170,913 )     (218,803 )
    Other stockholders’ equity1   1,296,254       1,293,929       1,253,587  
    Total stockholders’ equity   1,383,269       1,402,884       1,271,981  
    Total liabilities & stockholders’ equity $ 12,046,722     $ 11,986,839     $ 12,283,415  
               
    SHARE AND PER SHARE AMOUNTS          
    Book value per common share $ 24.31     $ 24.67     $ 23.02  
    Tangible book value per common share2 $ 17.88     $ 18.19     $ 16.62  
    Ending number of common shares outstanding   56,895,981       56,872,241       55,244,119  

    ___________________________________________

    1. Net balance of common stock ($0.001 par value), additional paid-in capital, and treasury stock.
    2. See “Non-GAAP Financial Information” for reconciliation.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)
    (dollars in thousands, except per share amounts)
                       
      Three Months Ended   Years Ended
      December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    INTEREST INCOME                  
    Interest and fees on loans $ 106,120     $ 111,336     $ 101,425   $ 426,422     $ 385,848  
    Interest and dividends on investment securities   16,788       18,072       20,634     73,970       82,994  
    Dividend income on bank stock   557       106       212     848       1,170  
    Other interest income   7,851       5,092       6,641     22,441       10,531  
    Total interest income $ 131,316     $ 134,606     $ 128,912   $ 523,681     $ 480,543  
                       
    INTEREST EXPENSE                  
    Deposits $ 44,152     $ 46,634     $ 45,409   $ 178,463     $ 123,985  
    Federal funds purchased and securities sold under agreements to repurchase   915       981       1,431     4,308       5,203  
    Short-term borrowings   25       26       248     701       12,775  
    Long-term debt   3,183       3,181       3,475     12,950       14,106  
    Junior subordinated debt owed to unconsolidated trusts   1,463       1,137       1,004     4,648       3,853  
    Total interest expense $ 49,738     $ 51,959     $ 51,567   $ 201,070     $ 159,922  
                       
    Net interest income $ 81,578     $ 82,647     $ 77,345   $ 322,611     $ 320,621  
    Provision for credit losses   1,273       2       455     8,590       2,399  
    Net interest income after provision for credit losses $ 80,305     $ 82,645     $ 76,890   $ 314,021     $ 318,222  
                       
    NONINTEREST INCOME                  
    Wealth management fees $ 16,786     $ 15,378     $ 13,715   $ 63,630     $ 57,309  
    Fees for customer services   7,911       8,168       7,484     30,933       29,044  
    Payment technology solutions   5,094       5,265       5,420     21,983       21,192  
    Mortgage revenue   496       355       218     2,075       1,089  
    Income on bank owned life insurance   1,080       1,189       1,019     5,130       4,701  
    Realized net gains (losses) on the sale of mortgage servicing rights   —       (18 )     —     7,724       —  
    Net securities gains (losses)   (196 )     822       761     (6,102 )     (2,199 )
    Other noninterest income   4,050       4,686       2,687     14,309       10,078  
    Total noninterest income $ 35,221     $ 35,845     $ 31,304   $ 139,682     $ 121,214  
                       
    NONINTEREST EXPENSE                  
    Salaries, wages, and employee benefits $ 45,458     $ 44,593     $ 42,730   $ 175,619     $ 162,597  
    Data processing expense   6,564       6,910       6,236     27,124       23,708  
    Net occupancy expense of premises   4,794       4,633       4,318     18,737       18,214  
    Furniture and equipment expense   1,650       1,647       1,694     6,805       6,759  
    Professional fees   4,938       3,118       2,574     12,804       7,147  
    Amortization of intangible assets   2,471       2,548       2,479     10,057       10,432  
    Interchange expense   1,305       1,352       1,355     6,001       6,864  
    FDIC insurance   1,330       1,413       1,167     5,603       5,650  
    Other noninterest expense   9,657       9,712       12,426     37,649       44,161  
    Total noninterest expense $ 78,167     $ 75,926     $ 74,979   $ 300,399     $ 285,532  
                       
    Income before income taxes $ 37,359     $ 42,564     $ 33,215   $ 153,304     $ 153,904  
    Income taxes   9,254       10,560       7,466     39,613       31,339  
    Net income $ 28,105     $ 32,004     $ 25,749   $ 113,691     $ 122,565  
                       
    SHARE AND PER SHARE AMOUNTS                  
    Basic earnings per common share $ 0.49     $ 0.56     $ 0.46   $ 2.01     $ 2.21  
    Diluted earnings per common share $ 0.49     $ 0.55     $ 0.46   $ 1.98     $ 2.18  
    Weighted average number of common shares outstanding, basic   57,061,542       57,033,359       55,403,662     56,610,032       55,432,322  
    Weighted average number of common shares outstanding, diluted   57,934,812       57,967,848       56,333,033     57,543,001       56,256,148  
                                         

    BALANCE SHEET STRENGTH

    Our balance sheet remains a source of strength. Total assets were $12.05 billion as of December 31, 2024, compared to $11.99 billion as of September 30, 2024, and $12.28 billion as of December 31, 2023.

    We remain steadfast in our conservative approach to underwriting and disciplined approach to pricing, particularly given our outlook for the economy in the coming quarters, and this approach has impacted loan growth as predicted. Portfolio loans totaled $7.70 billion at December 31, 2024, compared to $7.81 billion at September 30, 2024, and $7.65 billion at December 31, 2023.

    Average portfolio loans were $7.74 billion for both the fourth quarter of 2024 and the fourth quarter of 2023, compared to $7.87 billion for the third quarter of 2024. Average interest-earning assets were $11.05 billion for the fourth quarter of 2024, compared to $10.94 billion for the third quarter of 2024, and $11.24 billion for the fourth quarter of 2023.

    Total deposits were $9.98 billion at December 31, 2024, compared to $9.94 billion at September 30, 2024, and $10.29 billion at December 31, 2023. Average deposits were $10.05 billion for the fourth quarter of 2024, compared to $10.00 billion for the third quarter of 2024 and $10.37 billion for the fourth quarter of 2023. Deposit fluctuations over the last several quarters were driven by a number of elements, including (1) seasonal factors, including ordinary course public fund flows and fluctuations in the normal course of business operations of certain core commercial customers, (2) the macroeconomic environment, including prevailing interest rates and inflationary pressures, (3) depositors moving some funds to accounts at competitors offering above-market rates, and (4) deposits moving within the Busey ecosystem between deposit accounts and our wealth management group. Core deposits1 accounted for 96.5% of total deposits as of December 31, 2024. Cost of deposits was 1.75% in the fourth quarter of 2024, which represents a decrease of 10 basis points from the third quarter of 2024. Excluding time deposits, Busey’s cost of deposits was 1.38% in the fourth quarter of 2024, a decrease of 12 basis points from the third quarter of 2024. Busey Bank continues to offer savings account specials to customers with larger account balances, with the intention of migrating maturing CDs to these managed rate products. Spot rates on total deposit costs, including noninterest bearing deposits, decreased by 13 basis points from 1.80% at September 30, 2024, to 1.67% at December 31, 2024. Spot rates on interest bearing deposits decreased by 17 basis points from 2.46% at September 30, 2024, to 2.29% at December 31, 2024.

    There were no short term borrowings as of December 31 or September 30, 2024, compared to $12.0 million at December 31, 2023. We had no borrowings from the Federal Home Loan Bank (“FHLB”) at the end of the fourth quarter of 2024, the third quarter of 2024, or the fourth quarter of 2023. We have sufficient on- and off-balance sheet liquidity5 to manage deposit fluctuations and the liquidity needs of our customers. As of December 31, 2024, our available sources of on- and off-balance sheet liquidity totaled $6.19 billion. We have executed various deposit campaigns to attract term funding and savings accounts at a lower rate than our marginal cost of funds. New certificate of deposit production in the fourth quarter of 2024 had a weighted average term of 7.6 months at a rate of 3.58%, 128 basis points below our average marginal wholesale equivalent-term funding cost during the quarter. Furthermore, our balance sheet liquidity profile continues to be aided by the cash flows we expect from our relatively short-duration securities portfolio. Those cash flows were approximately $132.5 million in the fourth quarter of 2024. Cash flows from our securities portfolio are expected to be approximately $353.8 million for 2025, with a current book yield of 1.87%, and approximately $288.3 million for 2026, with a current book yield of 2.03%.

    ASSET QUALITY

    Credit quality continues to be strong. Loans 30-89 days past due totaled $8.1 million as of December 31, 2024, compared to $10.1 million as of September 30, 2024, and $5.8 million as of December 31, 2023. Non-performing loans were $23.2 million as of December 31, 2024, compared to $8.2 million as of September 30, 2024, and $7.8 million as of December 31, 2023. The increase relates to one Commercial Real Estate loan that was classified in the fourth quarter of 2023 and was moved to non-accrual during the fourth quarter of 2024. This loan carries a remaining balance of $15.0 million following a $3.0 million charge-off in the fourth quarter of 2024. Continued disciplined credit management resulted in non-performing loans as a percentage of portfolio loans of 0.30% as of December 31, 2024, compared to 0.11% as of September 30, 2024, and 0.10% as of December 31, 2023. Non-performing assets were 0.19% of total assets for the fourth quarter of 2024, compared to 0.07% for the third quarter of 2024 and 0.06% for the fourth quarter of 2023. Our total classified assets were $85.3 million at December 31, 2024, compared to $89.0 million at September 30, 2024, and $72.3 million at December 31, 2023. Our ratio of classified assets to estimated bank Tier 1 capital4 and reserves remains low by historical standards, at 5.6% as of December 31, 2024, compared to 5.9% as of September 30, 2024, and 5.0% as of December 31, 2023.

    Net charge-offs were $2.9 million for the fourth quarter of 2024, compared to $0.2 million for the third quarter of 2024, and $0.4 million for the fourth quarter of 2023. The fourth quarter charge-off relates to the Commercial Real Estate loan mentioned above. The allowance as a percentage of portfolio loans was 1.08% as of December 31, 2024, compared to 1.09% as of September 30, 2024, and 1.20% as of December 31, 2023. The ratio was impacted in 2024 by the acquisition of M&M’s Life Equity Loan® portfolio, as Busey did not record an allowance for credit loss for these loans due to no expected credit loss at default, as permitted under the practical expedient provided within the Accounting Standards Codification 326-20-35-6. The allowance coverage for non-performing loans was 3.59 times as of December 31, 2024, compared to 10.34 times as of September 30, 2024, and 11.74 times as of December 31, 2023.

    Busey maintains a well-diversified loan portfolio and, as a matter of policy and practice, limits concentration exposure in any particular loan segment.

    ASSET QUALITY (unaudited)
    (dollars in thousands)
               
      As of
      December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    Total assets $ 12,046,722     $ 11,986,839     $ 12,283,415  
    Portfolio loans   7,697,087       7,809,097       7,651,034  
    Loans 30 – 89 days past due   8,124       10,141       5,779  
    Non-performing loans:          
    Non-accrual loans   22,088       8,192       7,441  
    Loans 90+ days past due and still accruing   1,149       25       375  
    Non-performing loans $ 23,237     $ 8,217     $ 7,816  
    Non-performing loans, segregated by geography:          
    Illinois / Indiana $ 19,558     $ 3,981     $ 3,715  
    Missouri   3,016       3,530       3,836  
    Florida   663       706       265  
    Other non-performing assets   63       64       125  
    Non-performing assets $ 23,300     $ 8,281     $ 7,941  
               
    Allowance for credit losses $ 83,404     $ 84,981     $ 91,740  
               
    RATIOS          
    Non-performing loans to portfolio loans   0.30 %     0.11 %     0.10 %
    Non-performing assets to total assets   0.19 %     0.07 %     0.06 %
    Non-performing assets to portfolio loans and other non-performing assets   0.30 %     0.11 %     0.10 %
    Allowance for credit losses to portfolio loans   1.08 %     1.09 %     1.20 %
    Coverage ratio of the allowance for credit losses to non-performing loans   3.59 x     10.34 x     11.74 x
    NET CHARGE-OFFS (RECOVERIES) AND PROVISION EXPENSE (RELEASE) (unaudited)
    (dollars in thousands)
                       
      Three Months Ended   Years Ended
      December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Net charge-offs (recoveries) $ 2,850   $ 247   $ 425   $ 18,169   $ 2,267
    Provision expense (release)   1,273     2     455     8,590     2,399
                                 

    NET INTEREST MARGIN AND NET INTEREST INCOME

    Net interest margin1 was 2.95% for the fourth quarter of 2024, compared to 3.02% for the third quarter of 2024 and 2.75% for the fourth quarter of 2023. Excluding purchase accounting accretion, adjusted net interest margin1 was 2.92% for the fourth quarter of 2024, compared to 2.97% in the third quarter of 2024 and 2.74% in the fourth quarter of 2023. Net interest income was $81.6 million in the fourth quarter of 2024, compared to $82.6 million in the third quarter of 2024 and $77.3 million in the fourth quarter of 2023.

    After raising federal funds rates by a total of 525 basis points between March 2022 and July 2023, the Federal Open Market Committee (“FOMC”) lowered rates by 100 basis points beginning in September 2024. In anticipation of the FOMC pivot to an easing cycle, we limited our exposure to term funding structures and intentionally priced savings specials to encourage maturing CD balances to migrate to managed rate non-maturity products. Beginning in September we began lowering rates on special priced deposit accounts and other managed rate products to benefit from the FOMC rate cuts. In addition, approximately 7% of our deposit portfolio is indexed and immediately repriced with the rate cuts by the FOMC. CD balances comprise only 15% of the total deposit funding base. If rates move lower in 2025, we have the ability to reprice CD balances due to the short duration term structure of the portfolio. Approximately 58% of Busey’s non-maturity deposits are at rack rates with a weighted average rate of 0.01%. We continue to offer CD specials with shorter term structures as well as offering attractive premium savings rates to encourage rotation of maturing CD deposits into nimble pricing products. Components of the 7 basis point decrease in net interest margin1 during the fourth quarter of 2024 include:

    • Reduced non-maturity deposit funding costs contributed +9 basis points
    • Increased cash and securities portfolio yield contributed +6 basis points
    • Reduced time deposit funding costs contributed +1 basis point
    • Decreased loan portfolio and held for sale loan yields contributed -20 basis points
    • Decreased purchase accounting contributed -2 basis points
    • Increased borrowing expense -1 basis point

    Based on our most recent Asset Liability Management Committee (“ALCO”) model, a +100 basis point parallel rate shock is expected to increase net interest income by 2.0% over the subsequent twelve-month period. Busey continues to evaluate and execute off-balance sheet hedging and balance sheet restructuring strategies as well as embedding rate protection in our asset originations to provide stabilization to net interest income in lower rate environments. Time deposit and savings specials have provided funding flows, and we had excess earning cash during the fourth quarter of 2024. Our cumulative interest-bearing non-maturity tightening cycle deposit beta peaked at 41% during the third quarter of 2024. Our total deposit beta for the completed tightening cycle was 34%. Since the onset of the current easing cycle, we have reduced our interest-bearing non-maturity deposit cost of funds by 18 basis points, which represents a 26% easing cycle beta. Deposit betas were calculated based on an average federal funds rate of 4.82% during the fourth quarter of 2024. The average federal funds rate has decreased by 68 basis points since the end of the tightening cycle that concluded in the third quarter of 2024.

    NONINTEREST INCOME

    Noninterest income was $35.2 million for the fourth quarter of 2024, as compared to $35.8 million for the third quarter of 2024 and $31.3 million for the fourth quarter of 2023. Excluding the impact of net securities gains and losses and immaterial follow-on adjustments from the previously announced mortgage servicing rights sale, adjusted noninterest income1 was $35.4 million, or 30.3% of operating revenue1, during the fourth quarter of 2024, $35.0 million, or 29.8% of operating revenue, for the third quarter of 2024, and $30.5 million, or 28.3% of operating revenue, for the fourth quarter of 2023.

    Consolidated wealth management fees were $16.8 million for the fourth quarter of 2024, compared to $15.4 million for the third quarter of 2024 and $13.7 million for the fourth quarter of 2023. On a segment basis, Wealth Management generated $17.0 million in revenue during the fourth quarter of 2024, a 22.7% increase over revenue of $13.8 million for the fourth quarter of 2023. Fourth quarter of 2024 results marked a new record high reported quarterly revenue for the Wealth Management operating segment. The Wealth Management operating segment generated net income of $5.9 million in the fourth quarter of 2024, compared to $5.6 million in the third quarter of 2024 and $4.2 million in the fourth quarter of 2023. Busey’s Wealth Management division ended the fourth quarter of 2024 with $13.83 billion in assets under care, compared to $13.69 billion at the end of the third quarter of 2024 and $12.14 billion at the end of the fourth quarter of 2023. Our portfolio management team continues to focus on long-term returns and managing risk in the face of volatile markets and has outperformed its blended benchmark6 over the last three and five years.

    Payment technology solutions revenue was $5.1 million for the fourth quarter of 2024, compared to $5.3 million for the third quarter of 2024 and $5.4 million for the fourth quarter of 2023. Excluding intracompany eliminations, the FirsTech operating segment generated revenue of $5.4 million during the fourth quarter of 2024, compared to $5.6 million in the third quarter of 2024 and $5.8 million in the fourth quarter of 2023.

    Wealth management fees, wealth management referral income included in other noninterest income, and payment technology solutions represented 62.3% of adjusted noninterest income1 for the fourth quarter of 2024.

    Fees for customer services were $7.9 million for the fourth quarter of 2024, compared to $8.2 million in the third quarter of 2024 and $7.5 million in the fourth quarter of 2023.

    Other noninterest income was $4.1 million in the fourth quarter of 2024, compared to $4.7 million in the third quarter of 2024 and $2.7 million in the fourth quarter of 2023. The third quarter of 2024 benefited from $0.8 million in revenue associated with certain wealth management activities that was reported as other noninterest income; in comparison, other noninterest income from wealth management activities was $0.2 million for the fourth quarter of 2024 and $0.1 million for the fourth quarter of 2023. Compared to the prior quarter, we also saw decreases in venture capital income and swap origination fee income, which were mostly offset by increases in commercial loan sales gains. When compared with the fourth quarter of 2023, increases in other noninterest income were primarily attributable to increases in commercial loan sales gains and venture capital income, as well as the addition of Life Equity Loan® servicing income beginning in the second quarter of 2024.

    OPERATING EFFICIENCY

    Noninterest expense was $78.2 million in the fourth quarter of 2024, compared to $75.9 million in the third quarter of 2024 and $75.0 million for the fourth quarter of 2023. The efficiency ratio1 was 64.5% for the fourth quarter of 2024, compared to 62.1% for the third quarter of 2024, and 66.9% for the fourth quarter of 2023. Adjusted core expense1 was $72.6 million in the fourth quarter of 2024, compared to $71.0 million in the third quarter of 2024 and $65.2 million in the fourth quarter of 2023. The adjusted core efficiency ratio1 was 61.8% for the fourth quarter of 2024, compared to 60.2% for the third quarter of 2024, and 60.1% for the fourth quarter of 2023. We expect to continue to prudently manage our expenses and to realize the full extent of M&M acquisition synergies in 2025.

    Noteworthy components of noninterest expense are as follows:

    • Salaries, wages, and employee benefits expenses were $45.5 million in the fourth quarter of 2024, compared to $44.6 million in the third quarter of 2024 and $42.7 million in the fourth quarter of 2023. Busey recorded $0.2 million of non-operating salaries, wages, and employee benefit expenses in the fourth quarter of 2024, compared to $0.1 million in the third quarter of 2024 and $3.8 million in the fourth quarter of 2023. Our associate-base consisted of 1,509 full-time equivalents as of December 31, 2024, compared to 1,510 as of September 30, 2024, and 1,479 as of December 31, 2023. The increase in our associate-base in 2024 was largely due to the M&M acquisition.
    • Data processing expense was $6.6 million in the fourth quarter of 2024, compared to $6.9 million in the third quarter of 2024 and $6.2 million in the fourth quarter of 2023. Busey has continued to make investments in technology enhancements and has also experienced inflation-driven price increases.
    • Professional fees were $4.9 million in the fourth quarter of 2024, compared to $3.1 million in the third quarter of 2024 and $2.6 million in the fourth quarter of 2023. Busey recorded $3.0 million of non-operating professional fees in the fourth quarter of 2024, as compared to $1.4 million in the third quarter of 2024 and $0.4 million in the fourth quarter of 2023. Fourth quarter of 2024 non-operating professional fees consisted of $1.9 million related to merger activities and $1.1 million in restructuring activities related to corporate strategy advisement.
    • Other noninterest expense was $9.7 million for both the third and fourth quarters of 2024, compared to $12.4 million in the fourth quarter of 2023. Busey recorded $0.3 million of non-operating costs in other noninterest expense in the fourth quarter of 2024, compared to $0.4 million in the third quarter of 2024 and $0.1 million in the fourth quarter of 2023. In connection with Busey’s adoption of ASU 2023-02 on January 1, 2024, Busey began recording amortization of New Markets Tax Credits as income tax expense instead of other operating expense, which resulted in a decrease to other operating expenses of $2.3 million compared to the fourth quarter of 2023. Other items contributing to the fluctuations in other noninterest expense included the provision for unfunded commitments, mortgage servicing rights valuation expenses, fixed asset impairment, marketing, business development, and expenses related to recruiting and onboarding.

    Busey’s effective tax rate for the fourth quarter of 2024 was 24.8%, which was lower than the combined federal and state statutory rate of approximately 28.0% due to the impact of tax exempt interest income, such as municipal bond interest, bank owned life insurance income, and investments in various federal and state tax credits. Busey’s effective tax rate for the full year 2024 was 25.8%. In the second quarter of 2024, Busey recorded a one-time deferred tax valuation adjustment of $1.4 million resulting from a change to our Illinois apportionment rate due to recently enacted regulations. These newly enacted regulations are expected to lower our tax obligation in future periods. Excluding the impact of the one-time deferred tax valuation adjustment, our effective tax rate for the full year 2024 would have been 24.9%.

    Effective tax rates were higher in 2024, compared to 2023, due to the adoption of ASU 2023-02 in January 2024. Upon adoption of ASU 2023-02 Busey elected to use the proportional amortization method of accounting for equity investments made primarily for the purpose of receiving income tax credits. The proportional amortization method results in the cost of the investment being amortized in proportion to the income tax credits and other income tax benefits received, with the amortization of the investment and the income tax credits being presented net in the income statement as a component of income tax expense as opposed to being presented on a gross basis on the income statement as a component of noninterest expense and income tax expense.

    CAPITAL STRENGTH

    Busey’s strong capital levels, coupled with its earnings, have allowed the Company to provide a steady return to its stockholders through dividends. On January 31, 2025, Busey will pay a cash dividend of $0.25 per common share to stockholders of record as of January 24, 2025, which represents a 4.2% increase from the previous quarterly dividend of $0.24 per share. Busey has consistently paid dividends to its common stockholders since the bank holding company was organized in 1980.

    As of December 31, 2024, Busey continued to exceed the capital adequacy requirements necessary to be considered “well-capitalized” under applicable regulatory guidelines. Busey’s Common Equity Tier 1 ratio is estimated4 to be 14.10% at December 31, 2024, compared to 13.78% at September 30, 2024, and 13.09% at December 31, 2023. Our Total Capital to Risk Weighted Assets ratio is estimated4 to be 18.53% at December 31, 2024, compared to 18.19% at September 30, 2024, and 17.44% at December 31, 2023.

    Busey’s tangible common equity1 was $1.02 billion at December 31, 2024, compared to $1.04 billion at September 30, 2024, and $925.0 million at December 31, 2023. Tangible common equity1 represented 8.76% of tangible assets at December 31, 2024, compared to 8.96% at September 30, 2024, and 7.75% at December 31, 2023. Busey’s tangible book value per common share1 was $17.88 at December 31, 2024, compared to $18.19 at September 30, 2024, and $16.62 at December 31, 2023, reflecting a 7.6% year-over-year increase. The ratios of tangible common equity to tangible assets1 and tangible book value per common share have been impacted by the fair value adjustment of Busey’s securities portfolio as a result of the current rate environment, which is reflected in the accumulated other comprehensive income (loss) component of stockholder’s equity.

    FOURTH QUARTER EARNINGS INVESTOR PRESENTATION

    For additional information on Busey’s financial condition and operating results, please refer to the Q4 2024 Earnings Investor Presentation furnished via Form 8-K on January 28, 2025, in connection with this earnings release.

    CORPORATE PROFILE

    As of December 31, 2024, First Busey Corporation (Nasdaq: BUSE) was an $12.05 billion financial holding company headquartered in Champaign, Illinois.

    Busey Bank, a wholly-owned bank subsidiary of First Busey Corporation, had total assets of $12.01 billion as of December 31, 2024, and is headquartered in Champaign, Illinois. Busey Bank currently has 62 banking centers, with 21 in Central Illinois markets, 17 in suburban Chicago markets, 20 in the St. Louis Metropolitan Statistical Area, three in Southwest Florida, and one in Indianapolis. More information about Busey Bank can be found at busey.com.

    Through Busey’s Wealth Management division, the Company provides a full range of asset management, investment, brokerage, fiduciary, philanthropic advisory, tax preparation, and farm management services to individuals, businesses, and foundations. Assets under care totaled $13.83 billion as of December 31, 2024. More information about Busey’s Wealth Management services can be found at busey.com/wealth-management.

    Busey Bank’s wholly-owned subsidiary, FirsTech, specializes in the evolving financial technology needs of small and medium-sized businesses, highly regulated enterprise industries, and financial institutions. FirsTech provides comprehensive and innovative payment technology solutions, including online, mobile, and voice-recognition bill payments; money and data movement; merchant services; direct debit services; lockbox remittance processing for payments made by mail; and walk-in payments at retail agents. Additionally, FirsTech simplifies client workflows through integrations enabling support with billing, reconciliation, bill reminders, and treasury services. More information about FirsTech can be found at firstechpayments.com.

    For the first time, Busey was named among the World’s Best Banks for 2024 by Forbes, earning a spot on the list among 68 U.S. banks and 403 banks worldwide. Additionally, Busey Bank was honored to be named among America’s Best Banks by Forbes magazine for the third consecutive year. Ranked 40th overall in 2024, Busey was the second-ranked bank headquartered in Illinois of the six banks that made this year’s list and the highest-ranked bank of those with more than $10 billion in assets. Busey is humbled to be named among the 2024 Best Banks to Work For by American Banker, the 2024 Best Places to Work in Money Management by Pensions and Investments, the 2024 Best Places to Work in Illinois by Daily Herald Business Ledger, the 2024 Best Places to Work in Indiana by the Indiana Chamber of Commerce, and the 2024 Best Companies to Work For in Florida by Florida Trend magazine. We are honored to be consistently recognized globally, nationally and locally for our engaged culture of integrity and commitment to community development.

    For more information about us, visit busey.com.

    Category: Financial
    Source: First Busey Corporation

    Contacts:

    Jeffrey D. Jones, Chief Financial Officer
    217-365-4130

    NON-GAAP FINANCIAL INFORMATION

    This earnings release contains certain financial information determined by methods other than GAAP. Management uses these non-GAAP measures, together with the related GAAP measures, in analysis of Busey’s performance and in making business decisions, as well as for comparison to Busey’s peers. Busey believes the adjusted measures are useful for investors and management to understand the effects of certain non-core and non-recurring noninterest items and provide additional perspective on Busey’s performance over time.

    Below is a reconciliation to what management believes to be the most directly comparable GAAP financial measures—specifically, net interest income, total noninterest income, net security gains and losses, and total noninterest expense in the case of pre-provision net revenue, adjusted pre-provision net revenue, pre-provision net revenue to average assets, and adjusted pre-provision net revenue to average assets; net income in the case of adjusted net income, adjusted diluted earnings per share, adjusted return on average assets, average tangible common equity, return on average tangible common equity, adjusted return on average tangible common equity; net income and net security gains and losses in the case of further adjusted net income and further adjusted diluted earnings per share; net interest income in the case of adjusted net interest income and adjusted net interest margin; net interest income, total noninterest income, and total noninterest expense in the case of adjusted noninterest income, adjusted noninterest expense, noninterest expense excluding non-operating adjustments, adjusted core expense, efficiency ratio, adjusted efficiency ratio, and adjusted core efficiency ratio; net interest income, total noninterest income, net securities gains and losses, and net gains and losses on the sale of mortgage servicing rights in the case of operating revenue and adjusted noninterest income to operating revenue; total assets and goodwill and other intangible assets in the case of tangible assets; total stockholders’ equity in the case of tangible book value per common share; total assets and total stockholders’ equity in the case of tangible common equity and tangible common equity to tangible assets; and total deposits in the case of core deposits and core deposits to total deposits.

    These non-GAAP disclosures have inherent limitations and are not audited. They should not be considered in isolation or as a substitute for operating results reported in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Tax effected numbers included in these non-GAAP disclosures are based on estimated statutory rates, estimated federal income tax rates, or effective tax rates, as noted with the tables below.

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Unaudited)
     
    Pre-Provision Net Revenue and Related Measures
                         
        Three Months Ended   Years Ended
    (dollars in thousands)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Net interest income (GAAP)   $ 81,578     $ 82,647     $ 77,345     $ 322,611     $ 320,621  
    Total noninterest income (GAAP)     35,221       35,845       31,304       139,682       121,214  
    Net security (gains) losses (GAAP)     196       (822 )     (761 )     6,102       2,199  
    Total noninterest expense (GAAP)     (78,167 )     (75,926 )     (74,979 )     (300,399 )     (285,532 )
    Pre-provision net revenue (Non-GAAP) [a]   38,828       41,744       32,909       167,996       158,502  
    Acquisition and restructuring expenses     3,585       1,935       4,237       8,140       4,328  
    Provision for unfunded commitments     (455 )     407       818       (1,095 )     461  
    Amortization of New Markets Tax Credits     —       —       2,259       —       8,999  
    Realized (gain) loss on the sale of mortgage service rights     —       18       —       (7,724 )     —  
    Adjusted pre-provision net revenue (Non-GAAP) [b] $ 41,958     $ 44,104     $ 40,223     $ 167,317     $ 172,290  
                         
    Average total assets (GAAP) [c]   12,085,993       12,007,702       12,308,491       12,051,871       12,246,218  
                         
    Pre-provision net revenue to average total assets (Non-GAAP)1 [a÷c]   1.28 %     1.38 %     1.06 %     1.39 %     1.29 %
    Adjusted pre-provision net revenue to average total assets (Non-GAAP)1 [b÷c]   1.38 %     1.46 %     1.30 %     1.39 %     1.41 %

    ___________________________________________

    1. For quarterly periods, measures are annualized.
     
    Adjusted Net Income, Average Tangible Common Equity, and Related Ratios
                         
        Three Months Ended   Years Ended
    (dollars in thousands, except per share amounts)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Net income (GAAP) [a] $ 28,105     $ 32,004     $ 25,749     $ 113,691     $ 122,565  
    Acquisition expenses:                    
    Salaries, wages, and employee benefits     247       73       —       1,457       —  
    Data processing     14       90       —       548       —  
    Professional fees, occupancy, furniture and fixtures, and other     2,208       1,772       266       4,896       357  
    Restructuring expenses:                    
    Salaries, wages, and employee benefits     —       —       3,760       123       3,760  
    Professional fees, occupancy, furniture and fixtures, and other     1,116       —       211       1,116       211  
    Acquisition and restructuring expenses     3,585       1,935       4,237       8,140       4,328  
    Related tax benefit1     (965 )     (406 )     (863 )     (2,026 )     (881 )
    Adjusted net income (Non-GAAP) [b] $ 30,725     $ 33,533     $ 29,123     $ 119,805     $ 126,012  
                         
    Weighted average number of common shares outstanding, diluted (GAAP) [c]   57,934,812       57,967,848       56,333,033       57,543,001       56,256,148  
    Diluted earnings per common share (GAAP) [a÷c] $ 0.49     $ 0.55     $ 0.46     $ 1.98     $ 2.18  
    Adjusted diluted earnings per common share (Non-GAAP) [b÷c] $ 0.53     $ 0.58     $ 0.52     $ 2.08     $ 2.24  
                         
    Average total assets (GAAP) [d]   12,085,993       12,007,702       12,308,491       12,051,871       12,246,218  
    Return on average assets (GAAP)2 [a÷d]   0.93 %     1.06 %     0.83 %     0.94 %     1.00 %
    Adjusted return on average assets (Non-GAAP)2 [b÷d]   1.01 %     1.11 %     0.94 %     0.99 %     1.03 %
                         
    Average common equity (GAAP)   $ 1,396,939     $ 1,364,377     $ 1,202,417     $ 1,342,424     $ 1,197,511  
    Average goodwill and other intangible assets, net     (367,400 )     (369,720 )     (355,469 )     (366,601 )     (359,347 )
    Average tangible common equity (Non-GAAP) [e] $ 1,029,539     $ 994,657     $ 846,948     $ 975,823     $ 838,164  
                         
    Return on average tangible common equity (Non-GAAP)2 [a÷e]   10.86 %     12.80 %     12.06 %     11.65 %     14.62 %
    Adjusted return on average tangible common equity (Non-GAAP)2 [b÷e]   11.87 %     13.41 %     13.64 %     12.28 %     15.03 %

    ___________________________________________

    1. Year-to-date tax benefits were calculated by multiplying year-to-date acquisition and restructuring expenses by tax rates of 24.9% and 20.4% for the years ended December 31, 2024 and 2023, respectively. Quarterly tax benefits were calculated as the year-to-date tax benefit amounts less the sum of amounts applied to previous quarters during the year, equating to tax rates of 26.9%, 21.0%, and 20.4% for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively.
    2. For quarterly periods, measures are annualized.
    Further Adjusted Net Income and Related Measures
                         
        Three Months Ended   Years Ended
    (dollars in thousands, except per share amounts)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Adjusted net income (Non-GAAP)1   $ 30,725     $ 33,533     $ 29,123     $ 119,805     $ 126,012  
    Further non-GAAP adjustments:                    
    Net securities (gains) losses     196       (822 )     (761 )     6,102       2,199  
    Realized net (gains) losses on the sale of mortgage servicing rights     —       18       —       (7,724 )     —  
    Tax effect for further non-GAAP adjustments2     (49 )     199       171       419       (448 )
    Tax effected further non-GAAP adjustments3     147       (605 )     (590 )     (1,203 )     1,751  
    Further adjusted net income (Non-GAAP)3 [a] $ 30,872     $ 32,928     $ 28,533     $ 118,602     $ 127,763  
    One-time deferred tax valuation adjustment4     —       —       —       1,446       —  
    Further adjusted net income, excluding one-time deferred tax valuation adjustment (Non-GAAP)3 [b] $ 30,872     $ 32,928     $ 28,533     $ 120,048     $ 127,763  
                         
    Weighted average number of common shares outstanding, diluted [c]   57,934,812       57,967,848       56,333,033       57,543,001       56,256,148  
                         
    Further adjusted diluted earnings per common share (Non-GAAP)3 [a÷c] $ 0.53     $ 0.57     $ 0.51     $ 2.06     $ 2.27  
    Further adjusted diluted earnings per common share, excluding one-time deferred tax valuation adjustment (Non-GAAP)3 [b÷c] $ 0.53     $ 0.57     $ 0.51     $ 2.09     $ 2.27  

    ___________________________________________

    1. Adjusted net income is a non-GAAP measure. See the previous table for a reconciliation to the nearest GAAP measure.
    2. Tax effects for further non-GAAP adjustments were calculated by multiplying further non-GAAP adjustments by the effective income tax rate for each period. Effective income tax rates that were used to calculate the tax effect were 24.8%, 24.8%, and 22.5% for the three months ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively, and were 25.8% and 20.4% for the years ended December 31, 2024 and 2023, respectively.
    3. Tax-effected measure.
    4. An estimated one-time deferred tax valuation adjustment of $1.4 million resulted from a change to our Illinois apportionment rate due to recently enacted regulations.
    Tax-Equivalent Net Interest Income, Adjusted Net Interest Income, Net Interest Margin, and Adjusted Net Interest Margin
                         
        Three Months Ended   Years Ended
    (dollars in thousands)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Net interest income (GAAP)   $ 81,578     $ 82,647     $ 77,345     $ 322,611     $ 320,621  
    Tax-equivalent adjustment1     446       396       501       1,693       2,173  
    Tax-equivalent net interest income (Non-GAAP) [a]   82,024       83,043       77,846       324,304       322,794  
    Purchase accounting accretion related to business combinations     (812 )     (1,338 )     (384 )     (3,166 )     (1,477 )
    Adjusted net interest income (Non-GAAP) [b] $ 81,212     $ 81,705     $ 77,462     $ 321,138     $ 321,317  
                         
    Average interest-earning assets (GAAP) [c]   11,048,350       10,942,745       11,235,326       10,999,424       11,181,010  
                         
    Net interest margin (Non-GAAP)2 [a÷c]   2.95 %     3.02 %     2.75 %     2.95 %     2.89 %
    Adjusted net interest margin (Non-GAAP)2 [b÷c]   2.92 %     2.97 %     2.74 %     2.92 %     2.87 %

    ___________________________________________

    1. Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
    2. For quarterly periods, measures are annualized.
    Adjusted Noninterest Income, Revenue Measures, Adjusted Noninterest Expense, Adjusted Core Expense, and Efficiency Ratios
                         
        Three Months Ended   Years Ended
    (dollars in thousands)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Net interest income (GAAP) [a] $ 81,578     $ 82,647     $ 77,345     $ 322,611     $ 320,621  
    Tax-equivalent adjustment1     446       396       501       1,693       2,173  
    Tax-equivalent net interest income (Non-GAAP) [b]   82,024       83,043       77,846       324,304       322,794  
                         
    Total noninterest income (GAAP)     35,221       35,845       31,304       139,682       121,214  
    Net security (gains) losses (GAAP)     196       (822 )     (761 )     6,102       2,199  
    Noninterest income excluding net securities gains and losses (Non-GAAP) [c]   35,417       35,023       30,543       145,784       123,413  
    Realized net (gains) losses on the sale of mortgage servicing rights (GAAP)     —       18       —       (7,724 )     —  
    Adjusted noninterest income (Non-GAAP) [d] $ 35,417     $ 35,041     $ 30,543     $ 138,060     $ 123,413  
                         
    Tax-equivalent revenue (Non-GAAP) [e = b+c] $ 117,441     $ 118,066     $ 108,389     $ 470,088     $ 446,207  
    Adjusted tax-equivalent revenue (Non-GAAP) [f = b+d]   117,441       118,084       108,389       462,364       446,207  
    Operating revenue (Non-GAAP) [g = a+d]   116,995       117,688       107,888       460,671       444,034  
                         
    Adjusted noninterest income to operating revenue (Non-GAAP) [d÷g]   30.27 %     29.77 %     28.31 %     29.97 %     27.79 %
                         
    Total noninterest expense (GAAP)   $ 78,167     $ 75,926     $ 74,979     $ 300,399     $ 285,532  
    Amortization of intangible assets (GAAP) [h]   (2,471 )     (2,548 )     (2,479 )     (10,057 )     (10,432 )
    Noninterest expense excluding amortization of intangible assets (Non-GAAP) [i]   75,696       73,378       72,500       290,342       275,100  
    Non-operating adjustments:                    
    Salaries, wages, and employee benefits     (247 )     (73 )     (3,760 )     (1,580 )     (3,760 )
    Data processing     (14 )     (90 )     —       (548 )     —  
    Professional fees, occupancy, furniture and fixtures, and other     (3,324 )     (1,772 )     (477 )     (6,012 )     (568 )
    Adjusted noninterest expense (Non-GAAP) [j]   72,111       71,443       68,263       282,202       270,772  
    Provision for unfunded commitments     455       (407 )     (818 )     1,095       (461 )
    Amortization of New Markets Tax Credits     —       —       (2,259 )     —       (8,999 )
    Adjusted core expense (Non-GAAP) [k] $ 72,566     $ 71,036     $ 65,186     $ 283,297     $ 261,312  
                         
    Noninterest expense, excluding non-operating adjustments (Non-GAAP) [j-h] $ 74,582     $ 73,991     $ 70,742     $ 292,259     $ 281,204  
                         
    Efficiency ratio (Non-GAAP) [i÷e]   64.45 %     62.15 %     66.89 %     61.76 %     61.65 %
    Adjusted efficiency ratio (Non-GAAP) [j÷f]   61.40 %     60.50 %     62.98 %     61.03 %     60.68 %
    Adjusted core efficiency ratio (Non-GAAP) [k÷f]   61.79 %     60.16 %     60.14 %     61.27 %     58.56 %

    ___________________________________________

    1. Tax-equivalent adjustments were calculated using an estimated federal income tax rate of 21%, applied to non-taxable interest income on investments and loans.
    Tangible Book Value and Tangible Book Value Per Common Share
                 
        As of
    (dollars in thousands, except per share amounts)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    Total stockholders’ equity (GAAP)   $ 1,383,269     $ 1,402,884     $ 1,271,981  
    Goodwill and other intangible assets, net (GAAP)     (365,975 )     (368,249 )     (353,864 )
    Tangible book value (Non-GAAP) [a] $ 1,017,294     $ 1,034,635     $ 918,117  
                 
    Ending number of common shares outstanding (GAAP) [b]   56,895,981       56,872,241       55,244,119  
                 
    Tangible book value per common share (Non-GAAP) [a÷b] $ 17.88     $ 18.19     $ 16.62  
    Tangible Assets, Tangible Common Equity, and Tangible Common Equity to Tangible Assets
                 
        As of
    (dollars in thousands)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    Total assets (GAAP)   $ 12,046,722     $ 11,986,839     $ 12,283,415  
    Goodwill and other intangible assets, net (GAAP)     (365,975 )     (368,249 )     (353,864 )
    Tax effect of other intangible assets1     6,379       7,178       6,888  
    Tangible assets (Non-GAAP)2 [a] $ 11,687,126     $ 11,625,768     $ 11,936,439  
                 
    Total stockholders’ equity (GAAP)   $ 1,383,269     $ 1,402,884     $ 1,271,981  
    Goodwill and other intangible assets, net (GAAP)     (365,975 )     (368,249 )     (353,864 )
    Tax effect of other intangible assets1     6,379       7,178       6,888  
    Tangible common equity (Non-GAAP)2 [b] $ 1,023,673     $ 1,041,813     $ 925,005  
                 
    Tangible common equity to tangible assets (Non-GAAP)2 [b÷a]   8.76 %     8.96 %     7.75 %

    ___________________________________________

    1. Net of estimated deferred tax liability, calculated using an estimated tax rate of 26.73% as of December 31, 2024, and 28% as of September 30, 2024, and December 31, 2023.
    2. Tax-effected measure.
    Core Deposits and Related Ratios
                 
        As of
    (dollars in thousands)   December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023
    Portfolio loans (GAAP) [a] $ 7,697,087     $ 7,809,097     $ 7,651,034  
                 
    Total deposits (GAAP) [b] $ 9,982,490     $ 9,943,241     $ 10,291,156  
    Brokered deposits, excluding brokered time deposits of $250,000 or more     (13,090 )     (13,089 )     (6,001 )
    Time deposits of $250,000 or more     (334,503 )     (338,808 )     (386,286 )
    Core deposits (Non-GAAP) [c] $ 9,634,897     $ 9,591,344     $ 9,898,869  
                 
    RATIOS            
    Core deposits to total deposits (Non-GAAP) [c÷b]   96.52 %     96.46 %     96.19 %
    Portfolio loans to core deposits (Non-GAAP) [a÷c]   79.89 %     81.42 %     77.29 %
                             

    FORWARD-LOOKING STATEMENTS

    This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Busey’s financial condition, results of operations, plans, objectives, future performance, and business. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of Busey’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should,” “position,” or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and Busey undertakes no obligation to update any statement in light of new information or future events.

    A number of factors, many of which are beyond Busey’s ability to control or predict, could cause actual results to differ materially from those in any forward-looking statements. These factors include, among others, the following: (1) risks related to the proposed transaction with CrossFirst, including (i) the possibility that the proposed transaction will not close when expected or at all because conditions to the closing are not satisfied on a timely basis or at all; (ii) the possibility that the anticipated benefits of the proposed transaction will not be realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Busey and CrossFirst do business; (iii) the possibility that the merger may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (iv) diversion of management’s attention from ongoing business operations and opportunities; (v) the possibility that Busey may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or at all, and to successfully integrate CrossFirst’s operations with those of Busey or that such integration may be more difficult, time consuming or costly than expected; (vi) revenues following the proposed transaction may be lower than expected; and (vii) stockholder litigation that could prevent or delay the closing of the proposed transaction or otherwise negatively impact our business and operations; (2) the strength of the local, state, national, and international economies and financial markets (including effects of inflationary pressures and supply chain constraints); (3) effects on the U.S. economy resulting from the implementation of policies proposed by the new presidential administration, including tariffs, mass deportations, and tax regulations; (4) the economic impact of any future terrorist threats or attacks, widespread disease or pandemics, or other adverse external events that could cause economic deterioration or instability in credit markets (including Russia’s invasion of Ukraine and the conflict in the Middle East); (5) changes in state and federal laws, regulations, and governmental policies concerning Busey’s general business (including changes in response to the failures of other banks or as a result changes in policies implemented by the new presidential administration); (6) changes in accounting policies and practices; (7) changes in interest rates and prepayment rates of Busey’s assets (including the impact of sustained elevated interest rates); (8) increased competition in the financial services sector (including from non-bank competitors such as credit unions and fintech companies) and the inability to attract new customers; (9) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (10) the loss of key executives or associates; (11) changes in consumer spending; (12) unexpected outcomes of existing or new litigation, investigations, or inquiries involving Busey (including with respect to Busey’s Illinois franchise taxes); (13) fluctuations in the value of securities held in Busey’s securities portfolio; (14) concentrations within Busey’s loan portfolio (including commercial real estate loans), large loans to certain borrowers, and large deposits from certain clients; (15) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (16) the level of non-performing assets on Busey’s balance sheets; (17) interruptions involving information technology and communications systems or third-party servicers; (18) breaches or failures of information security controls or cybersecurity-related incidents; and (19) the economic impact of exceptional weather occurrences such as tornadoes, hurricanes, floods, blizzards, and droughts. 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 Busey and its business, including additional factors that could materially affect Busey’s financial results, is included in Busey’s filings with the Securities and Exchange Commission.

    END NOTES

    1 Represents a non-GAAP financial measure. For a reconciliation to the most directly comparable financial measure calculated and presented in accordance with Generally Accepted Accounting Principles (“GAAP”), see “Non-GAAP Financial Information.”
    2 Estimated uninsured and uncollateralized deposits consist of account balances in excess of the $250 thousand FDIC insurance limit, less intercompany accounts and collateralized accounts (including preferred deposits).
    3 Central Business District areas within Busey’s footprint include downtown St. Louis, downtown Indianapolis, and downtown Chicago.
    4 Capital amounts and ratios for the fourth quarter of 2024 are not yet finalized and are subject to change.
    5 On- and off-balance sheet liquidity is comprised of cash and cash equivalents, debt securities excluding those pledged as collateral, brokered deposits, and Busey’s borrowing capacity through its revolving credit facility, the FHLB, the Federal Reserve Bank, and federal funds purchased lines.
    6 The blended benchmark consists of 60% MSCI All Country World Index and 40% Bloomberg Intermediate US Government/Credit Total Return Index.

    The MIL Network –

  • MIL-OSI: Stifel Raises Quarterly Common Stock Cash Dividend by 10% and Declares Preferred Stock Cash Dividend

    Source: GlobeNewswire (MIL-OSI)

    ST. LOUIS, Jan. 28, 2025 (GLOBE NEWSWIRE) — Stifel Financial Corp. (NYSE: SF) today announced that its Board of Directors has declared a cash dividend on shares of its common stock of $0.46 per share, payable March 17, 2025, to shareholders of record at the close of business on March 3, 2025.

    The Board of Directors also declared a quarterly cash dividend on the outstanding shares of its 6.25% Non-Cumulative Perpetual Preferred Stock, Series B (the “Series B Preferred Stock”), 6.125% Non-Cumulative Perpetual Preferred Stock, Series C (the “Series C Preferred Stock”), and 4.50% Non-Cumulative Perpetual Preferred Stock, Series D (the “Series D Preferred Stock”). The declared cash dividend on the Series B Preferred Stock, Series C Preferred Stock, and Series D Preferred Stock is for the period from December 16, 2024, up to, but excluding, March 17, 2025. The declared cash dividend equated to approximately $0.390625 per depositary share, or $390.625 per share of the Series B Preferred Stock outstanding. The declared cash dividend equated to approximately $0.3828125 per depositary share, or $382.8125 per share of the Series C Preferred Stock outstanding. The declared cash dividend equated to approximately $0.281250 per depositary share, or $281.250 per share of the Series D Preferred Stock outstanding. The cash dividends are payable on March 17, 2025 to shareholders of record on March 3, 2025.

    The Company’s Series B Preferred Stock trades on the New York Stock Exchange under the symbol “SF PrB”, the Company’s Series C Preferred Stock trades on the New York Stock Exchange under the symbol “SF PrC”, and the Company’s Series D Preferred Stock trades on the New York Stock Exchange under the symbol “SF PrD.”

    Stifel Company Information
    Stifel Financial Corp. (NYSE: SF) is a financial services holding company headquartered in St. Louis, Missouri, that conducts its banking, securities, and financial services business through several wholly owned subsidiaries. Stifel’s broker-dealer clients are served in the United States through Stifel, Nicolaus & Company, Incorporated, including its Eaton Partners and Miller Buckfire business divisions; Keefe, Bruyette & Woods, Inc.; and Stifel Independent Advisors, LLC; in Canada through Stifel Nicolaus Canada Inc.; and in the United Kingdom and Europe through Stifel Nicolaus Europe Limited. The Company’s broker-dealer affiliates provide securities brokerage, investment banking, trading, investment advisory, and related financial services to individual investors, professional money managers, businesses, and municipalities. Stifel Bank and Stifel Bank & Trust offer a full range of consumer and commercial lending solutions. Stifel Trust Company, N.A. and Stifel Trust Company Delaware, N.A. offer trust and related services. To learn more about Stifel, please visit the Company’s website at www.stifel.com. For global disclosures, please visit https://www.stifel.com/investor-relations/press-releases.

    Stifel Investor Relations Contact
    Joel Jeffrey, Senior Vice President
    (212) 271-3610 direct
    investorrelations@stifel.com                                

    The MIL Network –

  • MIL-OSI: CrossFirst Bankshares, Inc. Reports Record Fourth Quarter and Record Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    LEAWOOD, Kan., Jan. 28, 2025 (GLOBE NEWSWIRE) — CrossFirst Bankshares, Inc. (Nasdaq: CFB), the bank holding company for CrossFirst Bank, today reported operating results for the fourth quarter and full-year ended December 31, 2024.

    The fourth quarter and full-year earnings release can be viewed here: https://investors.crossfirstbankshares.com/financials/quarterly-reports

    Investor Contact
    Mike Daley | CrossFirst Bankshares, Inc.
    913.754.9707 | mike.daley@crossfirstbank.com

    About CrossFirst Bankshares, Inc.

    CrossFirst Bankshares, Inc. (Nasdaq: CFB) is a Kansas corporation and a registered bank holding company for its wholly owned subsidiary, CrossFirst Bank, a full-service financial institution that offers products and services to businesses, professionals, individuals, and families. CrossFirst Bank, headquartered in Leawood, Kansas, has locations in Kansas, Missouri, Oklahoma, Texas, Arizona, Colorado, and New Mexico.

    The MIL Network –

  • MIL-OSI: Magnite Partners With Sky New Zealand to Power Programmatic Advertising on Sky Sport Now

    Source: GlobeNewswire (MIL-OSI)

    AUCKLAND, New Zealand, Jan. 28, 2025 (GLOBE NEWSWIRE) — Magnite (NASDAQ: MGNI), the largest independent sell-side advertising company, is working with Sky New Zealand to power programmatic advertising on Sky’s premium live and on-demand sports streaming platform, Sky Sport Now. Following the recent launch of digital advertising on Sky Sport Now, buyers will have programmatic access to the platform’s high-value live sports inventory for the first time through Magnite.

    With 51.3 million annual streams* and content across an average of 35 sporting codes, Sky Sport Now offers advertisers a golden opportunity to engage audiences with data-driven targeting and optimised campaigns, maintained within a premium environment. Magnite’s cutting-edge streaming technology will help Sky recognise the value of their content in a way that respects the viewer experience, while making it easier for buyers to access scalable, premium inventory and reach engaged audiences.

    Lauren Quaintance, Sky New Zealand’s Chief Media and Data Officer, says: “The launch of digital advertising on Sky Sport Now unlocks Sky’s highly engaged live sport audiences on this platform for the first time. With all the live sport that Kiwis love in one place and scalable audiences now available to local digital advertisers, we’re experiencing strong interest from clients eager to get involved, and we’re incredibly grateful for the support from agencies and advertisers.

    “Aligning with the right partners to ensure we can package this inventory efficiently, while delivering a premium viewing experience has been critical, and Magnite has proven to be a highly effective partner. We’re excited to continue working with them to facilitate programmatic access to Sky’s highly engaged live sport audiences for the first time.”

    Yael Milbank, Managing Director, ANZ at Magnite, says: “Sky New Zealand has expanded their offering to meet the consumer appetite for more accessible live sports content, and we’re pleased to be working with them to unlock new opportunities for advertisers to reach highly engaged sports fans. We look forward to helping drive continued success as they leverage our leading streaming technology to enable programmatic activation of premium live sports inventory on Sky Sport Now.”

    About Sky New Zealand
    Sky is New Zealand’s leading entertainment company and home to the best and broadest choice in live sport, movies, shows, documentaries and news. Sky offers a suite of viewing choices to suit every New Zealander, whether it’s through the Sky Box and companion app Sky Go for premium direct-to-home customers, its streaming services Sky Sport Now for sport and Neon for movies and entertainment, or free-to-air on Sky Open.

    About Magnite
    We’re Magnite (NASDAQ: MGNI), the world’s largest independent sell-side advertising company. Publishers use our technology to monetize their content across all screens and formats including CTV, online video, display, and audio. The world’s leading agencies and brands trust our platform to access brand-safe, high-quality ad inventory and execute billions of advertising transactions each month. Anchored in bustling New York City, sunny Los Angeles, mile high Denver, historic London, colorful Singapore, and down under in Sydney, Magnite has offices across North America, EMEA, LATAM, and APAC.

    Media Contact:
    Einsteinz Communications
    carlotta@einsteinz.com.au

    _____________________

    *SOURCE 1: NIELSEN CMI, Q1 2023 – Q4 2023, AP15+, ONLINE VIDEO/TV SERVICES USED L7D.

    The MIL Network –

  • MIL-OSI: Provident Financial Services, Inc. Announces Fourth Quarter and Full Year Earnings, Declaration of Quarterly Cash Dividend and Annual Meeting Date

    Source: GlobeNewswire (MIL-OSI)

    ISELIN, N.J., Jan. 28, 2025 (GLOBE NEWSWIRE) — Provident Financial Services, Inc. (NYSE:PFS) (the “Company”) reported net income of $48.5 million, or $0.37 per basic and diluted share for the three months ended December 31, 2024, compared to $46.4 million, or $0.36 per basic and diluted share, for the three months ended September 30, 2024 and $27.3 million, or $0.36 per basic and diluted share, for the three months ended December 31, 2023. For the year ended December 31, 2024, net income totaled $115.5 million, or $1.05 per basic and diluted share, compared to $128.4 million, or $1.72 per basic and $1.71 per diluted share, for the year ended December 31, 2023.

    The Company’s earnings for the three months and year ended December 31, 2024 reflect the impact of the May 16, 2024 merger with Lakeland Bancorp, Inc. (“Lakeland”), which added $10.91 billion to total assets, $7.91 billion to loans, and $8.62 billion to deposits, net of purchase accounting adjustments. The merger with Lakeland significantly impacted provisions for credit losses in 2024 due to the initial Current Expected Credit Loss (“CECL”) provisions recorded on acquired loans in the second quarter. Transaction costs related to our merger with Lakeland totaled $20.2 million and $56.9 million, for the three months and year ended December 31, 2024, respectively, compared with transaction costs of $2.5 million and $7.8 million for the respective 2023 periods. Additionally, the Company realized a $2.8 million loss related to the sale of subordinated debt issued by Lakeland from the Provident investment portfolio, during the second quarter of 2024.

    Anthony J. Labozzetta, President and Chief Executive Officer commented, “Provident had an eventful 2024 marked by solid financial performance and defined by the completion of our merger with Lakeland. We have maintained excellent asset quality, grown our deposits, and benefited from our expanding fee-based businesses. With core systems conversion and integration now completed, we look forward to further improving our performance across all business lines in 2025.”

    Performance Highlights for the Fourth Quarter of 2024

    • Adjusted for transaction costs related to the merger with Lakeland, net of tax, the Company’s annualized adjusted returns on average assets, average equity and average tangible equity(1) were 1.05%, 9.53% and 15.39% for the quarter ended December 31, 2024, compared to 0.95%, 8.62% and 14.53% for the quarter ended September 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release.
    • The Company’s annualized adjusted pre-tax, pre-provision returns on average assets, average equity and average tangible equity(2) were 1.53%, 13.91% and 20.31% for the quarter ended December 31, 2024, compared to 1.48%, 13.48% and 19.77% for the quarter ended September 30, 2024. A reconciliation between GAAP and the above non-GAAP ratios is shown on page 13 of the earnings release.
    • Net interest margin decreased three basis points to 3.28% for the quarter ended December 31, 2024, from 3.31% for the trailing quarter, mainly due to a reduction in net accretion of purchase accounting adjustments related to the Lakeland merger. However, the core net interest margin, which excludes the impact of purchase accounting accretion and amortization, increased four basis points from the trailing quarter to 2.85%. The average yield on total loans decreased 22 basis points to 5.99% for the quarter ended December 31, 2024, compared to the trailing quarter, while the average cost of deposits, including non-interest-bearing deposits, decreased 11 basis points to 2.25% for the quarter ended December 31, 2024.
    • Wealth management and insurance agency income increased 12% and 19%, respectively, versus the same period in 2023.
    • Asset quality improved in the quarter, as non-performing loans to total loans as of December 31, 2024 decreased to 0.39% from 0.47% as of September 30, 2024, while non-performing assets to total assets as of December 31, 2024 decreased to 0.34% from 0.41% as of September 30, 2024.
    • The Company recorded a $7.8 million provision for credit losses on loans for the quarter ended December 31, 2024, compared to a $9.6 million provision for the trailing quarter. The decrease in the provision for credit losses on loans for the quarter was primarily attributable to the reclassification of $151.3 million to the held for sale portfolio, partially offset by modest deterioration in the economic forecast within our CECL model.
    • Total deposits increased $247.6 million to $18.62 billion as of December 31, 2024 compared to September 30, 2024.
    • In December of 2024, $151.3 million of the Bank’s commercial loan portfolio was reclassified from loans held for investment into the held for sale portfolio as a result of a decision to exit the non-relationship equipment lease financing business.
    • As of December 31, 2024, the Company’s loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.79 billion, with a weighted average interest rate of 6.91%.
    • At December 31, 2024, CRE loans related to office properties totaled $884.1 million, compared to $921.1 million at September 30, 2024. CRE loans secured by office properties constitutes 4.6% of total loans and have an average loan size of $1.9 million, with seven relationships greater than $10.0 million. There were four loans totaling $9.1 million on non-accrual as of December 31, 2024.
    • As of December 31, 2024, multi-family CRE loans secured by New York City properties totaled $244.5 million, compared to $226.6 million as of September 30, 2024. This portfolio constitutes only 1.3% of total loans and has an average loan size of $2.8 million. Loans that are collateralized by rent stabilized apartments comprise less than 0.80% of the total loan portfolio and are all performing.

    Declaration of Quarterly Dividend

    The Company’s Board of Directors declared a quarterly cash dividend of $0.24 per common share payable on February 28, 2025, to stockholders of record as of the close of business on February 14, 2025.

    Annual Meeting Date Set

    The Annual Meeting of Stockholders will be held on April 24, 2025 at 10:00 a.m. Eastern Time as a virtual meeting. February 28, 2025 has been established as the record date for the determination of stockholders entitled to vote at the Annual Meeting.

    Results of Operations

    Three months ended December 31, 2024 compared to the three months ended September 30, 2024

    For the three months ended December 31, 2024, net income was $48.5 million, or $0.37 per basic and diluted share, compared to net income of $46.4 million, or $0.36 per basic and diluted share, for the three months ended September 30, 2024.

    Net Interest Income and Net Interest Margin

    Net interest income decreased $2.0 million to $181.7 million for the three months ended December 31, 2024, from $183.7 million for the trailing quarter. The decrease in net interest income was primarily due to a decrease in net accretion of purchase accounting adjustments in the loan portfolio related to the Lakeland merger.

    The Company’s net interest margin decreased three basis points to 3.28% for the quarter ended December 31, 2024, from 3.31% for the trailing quarter. The average yield on interest-earning assets for the quarter ended December 31, 2024 decreased 18 basis points to 5.66%, compared to the trailing quarter. The average cost of interest-bearing liabilities for the quarter ended December 31, 2024 decreased 16 basis points to 3.03%, compared to the trailing quarter. The average cost of interest-bearing deposits for the quarter ended December 31, 2024 decreased 15 basis points to 2.81%, compared to 2.96% for the trailing quarter. The average cost of total deposits, including non-interest-bearing deposits, was 2.25% for the quarter ended December 31, 2024, compared to 2.36% for the trailing quarter. The average cost of borrowed funds for the quarter ended December 31, 2024 was 3.64%, compared to 3.73% for the quarter ended September 30, 2024. The net accretion of purchase accounting adjustments contributed 43 basis points to the net interest margin for the quarter ended December 31, 2024, compared with 50 basis points in the trailing quarter. The reduction in purchase accounting accretion was largely due to the prepayment of certain loans that resulted in accelerated amortization of acquisition premiums and a decrease in accelerated accretion related to prepayments of loans with acquisition discounts.

    Provision for Credit Losses on Loans

    For the quarter ended December 31, 2024, the Company recorded a $7.8 million provision for credit losses related to loans, compared with a provision for credit losses on loans of $9.6 million for the quarter ended September 30, 2024. The decrease in the provision for credit losses on loans for the quarter was primarily attributable to the reclassification of $151.3 million of commercial loans to the held for sale portfolio, partially offset by modest deterioration in the economic forecast within our CECL model for the current quarter as compared to the prior quarter. For the three months ended December 31, 2024, net charge-offs totaled $5.5 million, or an annualized 12 basis points of average loans, compared to net charge-offs of $6.8 million, or an annualized 14 basis points of average loans for the trailing quarter.

    Non-Interest Income and Expense

    For the three months ended December 31, 2024, non-interest income totaled $24.2 million, a decrease of $2.7 million, compared to the trailing quarter. Bank owned life insurance (“BOLI”) income decreased $2.0 million compared to the trailing quarter, to $2.3 million for the three months ended December 31, 2024, primarily due to a reduction in benefit claims. Insurance agency income decreased $342,000 to $3.3 million for the three months ended December 31, 2024, compared to $3.6 million for the trailing quarter, largely due to a seasonal decrease in business activity. Additionally, other income decreased $181,000 to $1.3 million for the three months ended December 31, 2024, compared to the trailing quarter, while fees and commissions decreased $129,000 to $9.7 million for the three months ended December 31, 2024, compared to the trailing quarter.

    Non-interest expense totaled $134.3 million for the three months ended December 31, 2024, a decrease of $1.7 million, compared to $136.0 million for the trailing quarter. Compensation and benefits expense decreased $3.5 million to $59.9 million for the three months ended December 31, 2024, compared to $63.5 million for the trailing quarter mainly due to decreases in salary expense and payroll tax expense. Amortization of intangibles decreased $2.7 million to $9.5 million for the three months ended December 31, 2024 primarily due to a current quarter adjustment to the rate of core deposit intangible amortization related to Lakeland, as a result of lower projected attrition on core deposits. FDIC insurance decreased $769,000 to $3.4 million for the three months ended December 31, 2024, compared to $4.2 million for the trailing quarter, primarily due to a decreases in the assessment rate and average assets. Additionally, data processing expense decreased $600,000 to $9.9 million for the three months ended December 31, 2024, compared to the trailing quarter, largely due to a decrease in core system expenses. Partially offsetting these decreases, merger-related expenses increased $4.6 million to $20.2 million for the three months ended December 31, 2024, compared to the trailing quarter, while other operating expenses increased $1.6 million to $17.4 million for the three months ended December 31, 2024, compared to the trailing quarter largely due to a $1.4 million charge for contingent litigation reserves.

    The Company’s annualized adjusted non-interest expense as a percentage of average assets(4) was 1.90% for the quarter ended December 31, 2024, compared to 1.98% for the trailing quarter. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(5) was 55.43% for the three months ended December 31, 2024, compared to 57.20% for the trailing quarter.

    Income Tax Expense

    For the three months ended December 31, 2024, the Company’s income tax expense was $14.2 million with an effective tax rate of 22.6%, compared with income tax expense of $18.9 million with an effective tax rate of 28.9% for the trailing quarter. The decrease in tax expense and the effective tax rate for the three months ended December 31, 2024, compared with the trailing quarter was largely due to a $4.2 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024.

    Three months ended December 31, 2024 compared to the three months ended December 31, 2023

    For the three months ended December 31, 2024, net income was $48.5 million, or $0.37 per basic and diluted share, compared to net income of $27.3 million, or $0.36 per basic and diluted share, for the three months ended December 31, 2023. The Company’s earnings for the quarter ended December 31, 2024 reflected the impact of the May 16, 2024 merger with Lakeland. The results of operations included transaction costs related to the merger with Lakeland totaling $20.2 million and $2.5 million for the three months ended December 31, 2024 and 2023, respectively.

    Net Interest Income and Net Interest Margin

    Net interest income increased $85.9 million to $181.7 million for the three months ended December 31, 2024, from $95.8 million for same period in 2023. Net interest income for the quarter ended December 31, 2024 compared to the same period in 2023 was favorably impacted by the net assets acquired from Lakeland, combined with favorable repricing of adjustable rate loans, higher market rates on new loan originations and the originations of higher-yielding loans, partially offset by unfavorable repricing of deposits.

    The Company’s net interest margin increased 36 basis points to 3.28% for the quarter ended December 31, 2024, from 2.92% for the same period last year. The average yield on interest-earning assets for the quarter ended December 31, 2024 increased 62 basis points to 5.66%, compared to 5.04% for the quarter ended December 31, 2023. The average cost of interest-bearing liabilities increased 32 basis points for the quarter ended December 31, 2024 to 3.03%, compared to 2.71% for the fourth quarter of 2023. The average cost of interest-bearing deposits for the quarter ended December 31, 2024 was 2.81%, compared to 2.47% for the same period last year. The average cost of total deposits, including non-interest-bearing deposits, was 2.25% for the quarter ended December 31, 2024, compared with 1.95% for the quarter ended December 31, 2023. The average cost of borrowed funds for the quarter ended December 31, 2024 was 3.64%, compared to 3.71% for the same period last year.

    Provision for Credit Losses on Loans

    For the quarter ended December 31, 2024, the Company recorded a $7.8 million provision for credit losses related to loans, compared with a $500,000 provision for credit losses on loans for the quarter ended December 31, 2023. The increase in the provision for credit losses on loans was largely a function of the period-over-period deterioration in the economic forecast and an increase in loans from the Lakeland acquisition.

    Non-Interest Income and Expense

    Non-interest income totaled $24.2 million for the quarter ended December 31, 2024, an increase of $5.2 million, compared to the same period in 2023. Fee income increased $3.6 million to $9.7 million for the three months ended December 31, 2024, compared to the same period in 2023, primarily resulting from the Lakeland merger. Wealth management income increased $812,000 to $7.7 million for the three months ended December 31, 2024, compared to the same period in 2023, primarily due to an increase in the average market value of assets under management, while BOLI income increased $617,000 to $2.3 million for the three months ended December 31, 2024, compared to the same period in 2023 largely due to an increase in income related to the addition of Lakeland’s BOLI. Insurance agency income increased $530,000 to $3.3 million, for the three months ended December 31, 2024, compared to the same period in 2023, largely due to strong retention revenue and new business activity. Partially offsetting these increases to non-interest income, other income decreased $330,000 to $1.3 million for the three months ended December 31, 2024, compared to the quarter ended December 31, 2023, primarily due to a decrease in net gains on the sale of SBA loans.

    Non-interest expense totaled $134.3 million for the three months ended December 31, 2024, an increase of $58.5 million, compared to $75.9 million for the three months ended December 31, 2023. Compensation and benefits expense increased $21.2 million to $59.9 million for three months ended December 31, 2024, compared to $38.8 million for the same period in 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Additionally, merger-related expense increased $17.7 million to $20.2 million for the three months ended December 31, 2024, compared to the same period in 2023. Amortization of intangibles increased $8.8 million to $9.5 million for the three months ended December 31, 2024, compared to $721,000 for the same period in 2023, largely due to core deposit intangible amortization related to the addition of Lakeland. Net occupancy expenses increased $4.8 million to $12.6 million for the three months ended December 31, 2024, compared to the same period in 2023, primarily due to an increase in depreciation and maintenance expenses related to the addition of Lakeland. Data processing expense increased $3.4 million to $9.9 million for the three months ended December 31, 2024, compared to the same period in 2023, largely due to additional software and hardware expenses related to the addition of Lakeland, while other operating expenses increased $1.7 million to $17.4 million for the three months ended December 31, 2024, compared to the same period in 2023, largely due to an increase in professional service expenses.

    The Company’s annualized adjusted non-interest expense as a percentage of average assets(4) was 1.90% for the quarter ended December 31, 2024, compared to 1.98% for the same period in 2023. The efficiency ratio (adjusted non-interest expense divided by the sum of net interest income and non-interest income)(5) was 55.43% for the three months ended December 31, 2024 compared to 61.32% for the same respective period in 2023.

    Income Tax Expense

    For the three months ended December 31, 2024, the Company’s income tax expense was $14.2 million with an effective tax rate of 22.6%, compared with $12.5 million with an effective tax rate of 31.3% for the three months ended December 31, 2023. The increase in tax expense for the three months ended December 31, 2024, compared with the three months ended December 31, 2023, was primarily due to an increase in taxable income, which was partially offset by a $4.2 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024. The decrease in the effective tax rate for the three months ended December 31, 2024, compared with the three months ended December 31, 2023 was primarily due to the aforementioned $4.2 million tax benefit related to the revaluation of deferred tax assets.

    Year ended December 31, 2024 compared to the year ended December 31, 2023

    For the year ended December 31, 2024, net income totaled $115.5 million, or $1.05 per basic and diluted share, compared to net income of $128.4 million, or $1.71 per basic and diluted share, for the year ended December 31, 2023.

    Net Interest Income and Net Interest Margin

    Net interest income increased $201.2 million to $600.6 million for the year ended December 31, 2024, from $399.5 million for 2023. Net interest income for the year ended December 31, 2024 was favorably impacted by the net assets acquired from Lakeland, combined with the favorable repricing of adjustable rate loans and higher market rates on new loan originations, partially offset by the unfavorable repricing of both deposits and borrowings.

    For the year ended December 31, 2024, the net interest margin increased 10 basis points to 3.26%, compared to 3.16% for 2023. The weighted average yield on interest earning assets increased 81 basis points to 5.68% for the year ended December 31, 2024, compared to 4.87% for 2023, while the weighted average cost of interest-bearing liabilities increased 81 basis points to 3.05% for the year ended December 31, 2024, compared to 2.24% last year. The average cost of interest-bearing deposits increased 84 basis points to 2.83% for the year ended December 31, 2024, compared to 1.99% in the prior year. Average non-interest-bearing demand deposits increased $792.0 million to $3.12 billion for the year ended December 31, 2024, compared with $2.33 billion for 2023. The average cost of total deposits, including non-interest-bearing deposits, was 2.26% for the year ended December 31, 2024, compared with 1.54% for 2023. The average cost of borrowings for the year ended December 31, 2024 was 3.71%, compared to 3.41% in the prior year.

    Provision for Credit Losses on Loans

    For the year ended December 31, 2024, the Company recorded an $83.6 million provision for credit losses related to loans, compared with a provision for credit losses of $28.2 million for 2023. The increased provision for credit losses on loans for the year ended December 31, 2024 was primarily attributable to an initial CECL provision for credit losses on loans of $60.1 million recorded as part of the Lakeland merger in accordance with GAAP requirements for accounting for business combinations, partially offset by some economic forecast improvement over the current twelve-month period within our CECL model, compared to last year.

    Non-Interest Income and Expense

    For the year ended December 31, 2024, non-interest income totaled $94.1 million, an increase of $14.3 million, compared to 2023. Fee income increased $9.7 million to $34.1 million for the year ended December 31, 2024, compared to 2023, primarily due to the addition of Lakeland. BOLI income increased $5.2 million to $11.7 million for the year ended December 31, 2024, compared to 2023, primarily due to an increase in benefit claims, combined with an increase in income related to the addition of Lakeland’s BOLI, while wealth management income increased $2.9 million to $30.5 million for the year ended December 31, 2024, compared to 2023, mainly due to an increase in the average market value of assets under management during the period. Additionally, insurance agency income increased $2.3 million to $16.2 million for the year ended December 31, 2024, compared to $13.9 million for 2023, largely due to increases in contingent commissions, retention revenue and new business activity. Partially offsetting these increases in non-interest income, net gains on securities transactions decreased $3.0 million for the year ended December 31, 2024, primarily due to a $2.8 million loss related to the sale from the Provident investment portfolio of subordinated debt issued by Lakeland. Additionally, other income decreased $2.8 million to $4.5 million for the year ended December 31, 2024, compared to $7.3 million for 2023, primarily due to a $2.0 million gain from the sale of a foreclosed commercial property recorded in the prior year, combined with a decrease in gains on sales of SBA loans in the current year.

    Non-interest expense totaled $457.5 million for the year ended December 31, 2024, an increase of $182.2 million, compared to $275.3 million for 2023. Compensation and benefits expense increased $69.8 million to $218.3 million for the year ended December 31, 2024, compared to $148.5 million for 2023. The increase in compensation and benefits expense was primarily attributable to the addition of Lakeland. Merger-related expenses increased $49.0 million to $56.9 million for the year ended December 31, 2024, compared to $7.8 million for 2023. Amortization of intangibles increased $26.0 million to $28.9 million for the year ended December 31, 2024, compared to $3.0 million for 2023, largely due to core deposit intangible amortization related to the addition of Lakeland. Net occupancy expense increased $12.7 million to $45.0 million for the year ended December 31, 2024, compared to 2023, primarily due to increases in depreciation and maintenance expense related to the addition of Lakeland, while data processing expense increased $12.6 million to $35.6 million for the year ended December 31, 2024, compared to $23.0 million for 2023, primarily due to additional software and hardware expenses related to the addition of Lakeland. Other operating expenses increased $7.3 million to $54.7 million for the year ended December 31, 2024, compared to $47.4 million for 2023, primarily due to increases in consulting and other professional service expenses, while FDIC insurance increased $4.4 million to $13.0 million for the year ended December 31, 2024, primarily due to the addition of Lakeland.

    Income Tax Expense

    For the year ended December 31, 2024, the Company’s income tax expense was $34.1 million with an effective tax rate of 22.8%, compared with $47.4 million with an effective tax rate of 27.0% for 2023. The decrease in tax expense for the year ended December 31, 2024, compared with last year was largely due to a $10.0 million tax benefit related to the revaluation of deferred tax assets to reflect the imposition by the State of New Jersey of a 2.5% Corporate Transit Fee, effective January 1, 2024, combined with a decrease in taxable income as a result of the initial CECL provision for credit losses on loans of $60.1 million recorded in accordance with GAAP requirements for accounting for business combinations and additional expenses from the Lakeland merger.

    Asset Quality

    The Company’s total non-performing loans at December 31, 2024 were $72.1 million, or 0.39% of total loans, compared to $89.9 million or 0.47% of total loans at September 30, 2024 and $49.6 million, or 0.46% of total loans at December 31, 2023. The $17.9 million decrease in non-performing loans at December 31, 2024, compared to the trailing quarter, consisted of a $24.3 million decrease in non-performing commercial loans and a $676,000 decrease in non-performing residential loans, partially offset by a $6.9 million increase in non-performing commercial mortgage loans and a $223,000 increase in non-performing consumer loans. As of December 31, 2024, impaired loans totaled $55.4 million with related specific reserves of $7.5 million, compared with impaired loans totaling $74.0 million with related specific reserves of $7.2 million as of September 30, 2024. As of December 31, 2023, impaired loans totaled $42.3 million with related specific reserves of $2.9 million.

    At December 31, 2024, the Company’s allowance for credit losses related to the loan portfolio was 1.04% of total loans, compared to 1.02% and 0.99% at September 30, 2024 and December 31, 2023, respectively. The allowance for credit losses increased $88.0 million to $193.4 million at December 31, 2024, from $107.2 million at December 31, 2023. The increase in the allowance for credit losses on loans at December 31, 2024 compared to December 31, 2023 was due to an $83.6 million provision for credit losses on loans, which included an initial CECL provision of $60.1 million on loans acquired from Lakeland, and a $17.2 million allowance recorded through goodwill related to Purchased Credit Deteriorated loans acquired from Lakeland, partially offset by net charge-offs of $14.6 million.

    The following table sets forth accruing past due loans and non-accrual loans on the dates indicated, as well as certain asset quality ratios.

        December 31, 2024   September 30, 2024   December 31, 2023  
        Number
    of
    Loans    		   Principal
    Balance
    of Loans    		   Number
    of
    Loans    		   Principal
    Balance
    of Loans    		   Number
    of
    Loans    		   Principal
    Balance
    of Loans    		  
        (Dollars in thousands)
    Accruing past due loans:                          
    30 to 59 days past due:                          
    Commercial mortgage loans   7   $ 8,538     2   $ 430     1   $ 825    
    Multi-family mortgage loans   —     —     —     —     1     3,815    
    Construction loans   —     —     —     —     —     —    
    Residential mortgage loans   22     6,388     23     5,020     13     3,429    
    Total mortgage loans   29     14,926     25     5,450     15     8,069    
    Commercial loans   23     4,248     14     1,952     6     998    
    Consumer loans   47     3,152     53     4,073     31     875    
    Total 30 to 59 days past due   99   $ 22,326     92   $ 11,475     52   $ 9,942    
                               
    60 to 89 days past due:                          
    Commercial mortgage loans   4   $ 3,954     1   $ 641     —   $ —    
    Multi-family mortgage loans   —     —     —     —     1     1,635    
    Construction loans   —     —     —     —     —     —    
    Residential mortgage loans   17     5,049     11     1,991     8     1,208    
    Total mortgage loans   21     9,003     12     2,632     9     2,843    
    Commercial loans   9     2,377     9     1,240     3     198    
    Consumer loans   15     856     10     606     5     275    
    Total 60 to 89 days past due   45     12,236     31     4,478     17     3,316    
    Total accruing past due loans   144   $ 34,562     123   $ 15,953     69   $ 13,258    
                               
    Non-accrual:                          
    Commercial mortgage loans   17   $ 20,883     17   $ 13,969     7   $ 5,151    
    Multi-family mortgage loans   6     7,498     6     7,578     1     744    
    Construction loans   2     13,246     2     13,151     1     771    
    Residential mortgage loans   23     4,535     24     5,211     7     853    
    Total mortgage loans   48     46,162     49     39,909     16     7,519    
    Commercial loans   65     24,243     69     48,592     26     41,487    
    Consumer loans   23     1,656     32     1,433     10     633    
    Total non-accrual loans   136   $ 72,061     150   $ 89,934     52   $ 49,639    
                               
    Non-performing loans to total loans         0.39 %         0.47 %         0.46 %  
    Allowance for loan losses to total non-performing loans         268.43 %         217.09 %         215.96 %  
    Allowance for loan losses to total loans         1.04 %         1.02 %         0.99 %  
     

    At December 31, 2024 and December 31, 2023, the Company held foreclosed assets of $9.5 million and $11.7 million, respectively. During the year ended December 31, 2024, there were four properties sold with an aggregate carrying value of $861,000 and one write-down of a foreclosed commercial property of $1.3 million. Foreclosed assets at December 31, 2024 consisted primarily of commercial real estate. Total non-performing assets at December 31, 2024 increased $20.2 million to $81.5 million, or 0.34% of total assets, from $61.3 million, or 0.43% of total assets at December 31, 2023.

    Balance Sheet Summary

    Total assets at December 31, 2024 were $24.05 billion, a $13.78 billion increase from December 31, 2023. The increase in total assets was primarily due to the addition of Lakeland.

    The Company’s loans held for investment portfolio totaled $18.66 billion at December 31, 2024 and $10.87 billion at December 31, 2023. The loan portfolio consists of the following:

      December 31, 2024   September 30, 2024   December 31, 2023  
      (Dollars in thousands)
    Mortgage loans:            
    Commercial $ 7,228,078     $ 7,342,456     $ 4,512,411    
    Multi-family   3,382,933       3,226,918       1,812,500    
    Construction   823,503       873,509       653,246    
    Residential   2,014,844       2,032,671       1,164,956    
      Total mortgage loans   13,449,358       13,475,554       8,143,113    
    Commercial loans   4,604,367       4,710,601       2,440,621    
    Consumer loans   613,819       623,709       299,164    
      Total gross loans   18,667,544       18,809,864       10,882,898    
    Premiums on purchased loans   1,338       1,362       1,474    
    Net deferred fees and unearned discounts   (9,512 )     (16,617 )     (12,456 )  
      Total loans $ 18,659,370     $ 18,794,609     $ 10,871,916    
     

    As part of the merger with Lakeland, we acquired $7.91 billion in loans, net of purchase accounting adjustments. For the year ended December 31, 2024, the Company experienced net increases of $1.57 billion in multi-family loans, $2.16 billion in commercial loans and $2.72 billion in commercial mortgage loans, partially offset by net decreases of $170.3 million in construction loans and net decreases in residential mortgage and consumer loans of $849.9 million and $314.7 million, respectively. Commercial loans, consisting of commercial real estate, multi-family, commercial and construction loans, represented 85.9% of the loan portfolio at December 31, 2024, compared to 86.5% at December 31, 2023.

    For the year ended December 31, 2024, loan funding, including advances on lines of credit, totaled $4.73 billion, compared with $3.34 billion for the same period in 2023.

    At December 31, 2024, the Company’s unfunded loan commitments totaled $2.73 billion, including commitments of $1.62 billion in commercial loans, $608.1 million in construction loans and $85.1 million in commercial mortgage loans. Unfunded loan commitments at September 30, 2024 and December 31, 2023 totaled $2.97 billion and $2.09 billion, respectively.

    The loan pipeline, consisting of work-in-process and loans approved pending closing, totaled $1.79 billion at December 31, 2024, compared to $1.98 billion at September 30, 2024 and $1.70 billion at December 31, 2023.

    Total investment securities were $3.21 billion at December 31, 2024, a $2.26 billion increase from December 31, 2023. This increase was primarily due to the addition of Lakeland.

    Total deposits increased $10.56 billion during the year ended December 31, 2024, to $18.62 billion. Total savings and demand deposit accounts increased $6.26 billion to $15.46 billion at December 31, 2024, while total time deposits increased $2.07 billion to $3.17 billion at December 31, 2024. The increase in savings and demand deposits was largely attributable to a $3.13 billion increase in interest-bearing demand deposits, a $1.59 billion increase in non-interest-bearing demand deposits, a $1.04 billion increase in money market deposits and a $504.0 million increase in savings deposits. The increase in time deposits consisted of a $1.98 billion increase in retail time deposits and a $91.1 million increase in brokered time deposits.

    Borrowed funds increased $1.34 billion during the year ended December 31, 2024, to $2.02 billion. The increase in borrowings was largely due to the addition of Lakeland. Borrowed funds represented 8.4% of total assets at December 31, 2024, an decrease from 13.9% at December 31, 2023.

    Stockholders’ equity increased $1.60 billion during the year ended December 31, 2024, to $2.60 billion, primarily due to common stock issued for the purchase of Lakeland, net income earned for the period and a slight improvement in unrealized losses on available for sale debt securities, partially offset by cash dividends paid to stockholders. For the year ended December 31, 2024, common stock repurchases totaled 89,569 shares at an average cost of $14.90 per share, all of which were made in connection with withholding to cover income taxes on the vesting of stock-based compensation. At December 31, 2024, approximately 3.1 million shares remained eligible for repurchase under the current stock repurchase authorization. Book value per share and tangible book value per share(6) at December 31, 2024 were $19.93 and $13.66, respectively, compared with $22.38 and $16.32, respectively, at December 31, 2023.

    About the Company

    Provident Financial Services, Inc. is the holding company for Provident Bank, a community-oriented bank offering “commitment you can count on” since 1839. Provident Bank provides a comprehensive array of financial products and services through its network of branches throughout New Jersey, Bucks, Lehigh and Northampton counties in Pennsylvania, as well as Orange, Queens and Nassau Counties in New York. The Bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company and insurance services through its wholly owned subsidiary, Provident Protection Plus, Inc.

    Post Earnings Conference Call

    Representatives of the Company will hold a conference call for investors on Wednesday, January 29, 2025 at 10:00 a.m. Eastern Time to discuss the Company’s financial results for the quarter and year ended December 31, 2024. The call may be accessed by dialing 1-888-412-4131 (United States Toll Free) and 1-646-960-0134 (United States Local). Speakers will need to enter conference ID code (3610756) before being met by a live operator. Internet access to the call is also available (listen only) at provident.bank by going to Investor Relations and clicking on “Webcast.”

    Forward Looking Statements

    Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “estimate,” “project,” “intend,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K, as supplemented by its Quarterly Reports on Form 10-Q, and those related to the economic environment, particularly in the market areas in which the Company operates, inflation and unemployment, competitive products and pricing, real estate values, fiscal and monetary policies of the U.S. Government, the effects of the recent turmoil in the banking industry, changes in accounting policies and practices that may be adopted by the regulatory agencies and the accounting standards setters, changes in government regulations affecting financial institutions, including regulatory fees and capital requirements, changes in prevailing interest rates, potential goodwill impairment, acquisitions and the integration of acquired businesses, credit risk management, asset-liability management, the financial and securities markets, the availability of and costs associated with sources of liquidity, the ability to complete, or any delays in completing, the pending merger between the Company and Lakeland; any failure to realize the anticipated benefits of the transaction when expected or at all; the possibility that the transaction may be more expensive to complete than anticipated, including as a result of unexpected conditions, factors or events; potential adverse reactions or changes to business, employee, customer and/or counterparty relationships, including those resulting from the completion of the merger and integration of the companies; and the impact of a potential shutdown of the federal government.

    The Company cautions readers not to place undue reliance on any such forward-looking statements which speak only as of the date they are made. The Company advises readers that the factors listed above could affect the Company’s financial performance and could cause the Company’s actual results for future periods to differ materially from any opinions or statements expressed with respect to future periods in any current statements. The Company does not assume any duty, and does not undertake, to update any forward-looking statements to reflect events or circumstances after the date of this statement.

    Footnotes

    (1) Annualized adjusted pre-tax, pre-provision return on average assets, annualized return on average tangible equity, tangible book value per share, annualized adjusted non-interest expense as a percentage of average assets and the efficiency ratio are non-GAAP financial measures. Please refer to the Notes following the Consolidated Financial Highlights which contain the reconciliation of GAAP to non-GAAP financial measures and the associated calculations.

    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Consolidated Financial Highlights
    (Dollars in Thousands, except share data) (Unaudited)
     
      At or for the
    Three months ended    		   At or for the
    Year ended
      December 31,   September 30,   December 31,   December 31,   December 31,
        2024       2024       2023       2024       2023  
    Statement of Income                  
    Net interest income $ 181,737     $ 183,701     $ 95,788     $ 600,614     $ 399,454  
    Provision for credit losses   8,880       9,299       (863 )     87,564       28,168  
    Non-interest income   24,175       26,855       18,968       94,113       79,829  
    Non-interest expense   134,323       136,002       75,851       457,548       275,336  
    Income before income tax expense   62,709       65,255       39,768       149,615       175,779  
    Net income   48,524       46,405       27,312       115,525       128,398  
    Diluted earnings per share $ 0.37     $ 0.36     $ 0.36     $ 1.05     $ 1.71  
    Interest rate spread   2.63 %     2.65 %     2.33 %     2.63 %     2.63 %
    Net interest margin   3.28 %     3.31 %     2.92 %     3.26 %     3.16 %
                       
    Profitability                  
    Annualized return on average assets   0.81 %     0.76 %     0.77 %     0.57 %     0.92 %
    Annualized adjusted return on average assets (1)   1.05 %     0.95 %     0.83 %     0.78 %     0.97 %
    Annualized return on average equity   7.36 %     6.94 %     6.60 %     5.07 %     7.81 %
    Annualized adjusted return on average equity (1)   9.53 %     8.62 %     7.10 %     6.95 %     8.22 %
    Annualized return on average tangible equity (3)   12.21 %     12.06 %     9.32 %     8.58 %     11.01 %
    Annualized adjusted return on average tangible equity (1)   15.39 %     14.53 %     9.99 %     11.29 %     11.54 %
    Annualized adjusted non-interest expense to average assets (4)   1.90 %     1.98 %     1.98 %     1.97 %     1.90 %
    Efficiency ratio (4)   55.43 %     57.20 %     61.32 %     57.67 %     55.19 %
                       
    Asset Quality                  
    Non-accrual loans     $ 89,934         $ 72,061     $ 49,639  
    90+ and still accruing       —           —       —  
    Non-performing loans       88,061           72,061       49,639  
    Foreclosed assets       9,801           9,473       11,651  
    Non-performing assets       97,862           81,534       61,290  
    Non-performing loans to total loans       0.47 %         0.39 %     0.46 %
    Non-performing assets to total assets       0.41 %         0.34 %     0.43 %
    Allowance for loan losses     $ 191,175         $ 193,432     $ 107,200  
    Allowance for loan losses to total non-performing loans       217.09 %         268.43 %     215.96 %
    Allowance for loan losses to total loans       1.02 %         1.04 %     0.99 %
    Net loan charge-offs $ 5,493       6,756     $ 4,010     $ 14,560     $ 8,129  
    Annualized net loan charge offs to average total loans   0.12 %     0.14 %     0.16 %     0.09 %     0.08 %
                       
    Average Balance Sheet Data                  
    Assets $ 23,908,514     $ 24,248,038     $ 14,114,626     $ 20,382,148     $ 13,915,467  
    Loans, net   18,487,443       18,531,939       10,660,201       15,600,431       10,367,620  
    Earning assets   21,760,458       21,809,226       12,823,541       18,403,149       12,637,224  
    Savings and demand deposits   15,581,608       15,394,715       9,210,315       13,103,803       9,358,290  
    Borrowings   1,711,806       2,125,149       1,873,822       1,983,674       1,636,572  
    Interest-bearing liabilities   17,093,382       17,304,569       10,020,726       14,596,325       9,671,794  
    Stockholders’ equity   2,624,019       2,660,470       1,642,854       2,279,525       1,644,529  
    Average yield on interest-earning assets   5.66 %     5.84 %     5.04 %     5.68 %     4.87 %
    Average cost of interest-bearing liabilities   3.03 %     3.19 %     2.71 %     3.05 %     2.24 %
     

    Notes and Reconciliation of GAAP and Non-GAAP Financial Measures
    (Dollars in Thousands, except share data)

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

    (1) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity  
        Three Months Ended   Year Ended
        December 31,   September 30,   December 31,   December 31,   December 31,
        2024   2024   2023   2024   2023
    Net Income   $ 48,524     $ 46,405     $ 27,312     $ 115,525     $ 128,398  
    Merger-related transaction costs     20,184       15,567       2,477       56,867       7,826  
    Less: income tax expense     (5,819 )     (4,306 )     (465 )     (14,010 )     (1,480 )
    Annualized adjusted net income   $ 62,889     $ 57,666     $ 29,324     $ 158,382     $ 134,744  
    Less: Amortization of Intangibles (net of tax)   $ 6,649     $ 8,551     $ 504     $ 20,226     $ 2,064  
    Annualized adjusted net income for annualized adjusted return on average tangible equity   $ 69,538     $ 66,216     $ 29,828     $ 178,607     $ 136,808  
                         
    Annualized Adjusted Return on Average Assets     1.05 %     0.95 %     0.83 %     0.78 %     0.97 %
    Annualized Adjusted Return on Average Equity     9.53 %     8.62 %     7.10 %     6.95 %     8.22 %
    Annualized Adjusted Return on Average Tangible Equity     15.39 %     14.53 %     9.99 %     11.29 %     11.54 %
                         
    (2) Annualized adjusted pre-tax, pre-provision (“PTPP”) returns on average assets, average equity and average tangible equity  
        Three Months Ended   Year Ended
        December 31,   September 30,   December 31,   December 31,   December 31,
          2024       2024       2023       2024       2023  
    Net income   $ 48,524     $ 46,405     $ 27,312     $ 115,525     $ 128,398  
    Adjustments to net income:                    
    Provision charge (benefit) for credit losses     8,880       9,299       (863 )     87,564       28,168  
    Net loss on Lakeland bond sale     —       —       —       2,839       —  
    Merger-related transaction costs     20,184       15,567       2,477       56,867       7,826  
    Contingent litigation reserves     —       —       3,000       —       3,000  
    Income tax expense     14,185       18,850       12,456       34,090       47,381  
    Adjusted PTPP income   $ 91,773     $ 90,121     $ 44,382     $ 296,885     $ 214,773  
                         
    Annualized Adjusted PTPP income   $ 365,097     $ 358,525     $ 176,081     $ 296,885     $ 214,773  
    Average assets   $ 23,908,514     $ 24,248,038     $ 14,114,626     $ 20,382,148     $ 13,915,467  
    Average equity   $ 2,624,019     $ 2,660,470     $ 1,642,854     $ 2,279,525     $ 1,644,529  
    Average tangible equity   $ 1,797,994     $ 1,813,327     $ 1,184,444     $ 1,581,339     $ 1,185,026  
                         
    Annualized Adjusted PTPP return on average assets     1.53 %     1.48 %     1.25 %     1.46 %     1.54 %
    Annualized PTPP return on average equity     13.91 %     13.48 %     10.72 %     13.02 %     13.06 %
    Annualized PTPP return on average tangible equity     20.31 %     19.77 %     14.87 %     18.77 %     18.12 %
                         
    (3) Annualized Return on Average Tangible Equity  
        Three Months Ended   Year Ended
        December 31,   September 30,   December 31,   December 31,   December 31,
          2024       2024       2023       2024       2023  
    Total average stockholders’ equity   $ 2,624,019     $ 2,660,470     $ 1,642,854     $ 2,279,525     $ 1,644,529  
    Less: total average intangible assets     826,025       847,143       458,410       698,186       459,503  
    Total average tangible stockholders’ equity   $ 1,797,994     $ 1,813,327     $ 1,184,444     $ 1,581,339     $ 1,185,026  
                         
    Net income   $ 48,524     $ 46,405     $ 27,312     $ 115,525     $ 128,398  
    Less: Amortization of Intangibles, net of tax     6,649       8,551       504       20,226       2,064  
    Total net income (loss)   $ 55,173     $ 54,956     $ 27,816     $ 135,751     $ 130,462  
                         
    Annualized return on average tangible equity (net income/total average tangible stockholders’ equity)     12.21 %     12.06 %     9.32 %     8.58 %     11.01 %
                         
    (4) Annualized Adjusted Non-Interest Expense to Average Assets  
        Three Months Ended   Year Ended
        December 31,   September 30,   December 31,   December 31,   December 31,
          2024       2024       2023       2024       2023  
    Reported non-interest expense   $ 134,323     $ 136,002     $ 75,851     $ 457,548     $ 275,336  
    Adjustments to non-interest expense:                    
    Merger-related transaction costs     20,184       15,567       2,477       56,867       7,826  
    Contingent litigation reserves     —       —       3,000       —       3,000  
    Adjusted non-interest expense   $ 114,139     $ 120,435     $ 70,374     $ 400,681     $ 264,510  
                         
    Annualized adjusted non-interest expense   $ 454,075     $ 479,122     $ 279,201     $ 400,681     $ 264,510  
    Average assets   $ 23,908,514     $ 24,248,038     $ 14,114,626     $ 20,382,148     $ 13,915,467  
    Annualized adjusted non-interest expense/average assets     1.90 %     1.98 %     1.98 %     1.97 %     1.90 %
                         
    (5) Efficiency Ratio Calculation  
        Three Months Ended   Year Ended
        December 31,   September 30,   December 31,   December 31,   December 31,
          2024       2024       2023       2024       2023  
    Net interest income   $ 181,737     $ 183,701     $ 95,788     $ 600,614     $ 399,454  
    Non-interest income     24,175       26,855       18,968       94,113       79,829  
    Adjustments to non-interest income:                    
    Net loss (gain) on securities transactions     14       (2 )     7       2,986       (30 )
    Adjusted non-interest income     24,189       26,853       18,975       97,099       79,799  
    Total income   $ 205,912     $ 210,554     $ 114,756     $ 694,727     $ 479,283  
                         
    Adjusted non-interest expense   $ 114,139     $ 120,435     $ 70,374     $ 400,681     $ 264,510  
                         
    Efficiency ratio (adjusted non-interest expense/income)     55.43 %     57.20 %     61.32 %     57.67 %     55.19 %
                         
    (6) Book and Tangible Book Value per Share  
                    December 31,   December 31,
                      2024       2023  
    Total stockholders’ equity               $ 2,601,207     $ 1,690,596  
    Less: total intangible assets                 819,230       457,942  
    Total tangible stockholders’ equity               $ 1,781,977     $ 1,232,654  
                         
    Shares outstanding                 130,489,493       75,537,186  
                         
    Book value per share (total stockholders’ equity/shares outstanding)               $ 19.93     $ 22.38  
    Tangible book value per share (total tangible stockholders’ equity/shares outstanding)               $ 13.66     $ 16.32  
     
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Consolidated Statements of Financial Condition
    December 31, 2024 (Unaudited) and December 31, 2023
    (Dollars in Thousands)
           
    Assets December 31, 2024   December 31, 2023
    Cash and due from banks $ 166,914     $ 180,241  
    Short-term investments   25       14  
    Total cash and cash equivalents   166,939       180,255  
    Available for sale debt securities, at fair value   2,768,915       1,690,112  
    Held to maturity debt securities, (net of $14,000 allowance as of December 31, 2024 (unaudited) and $31,000 allowance as of December 31, 2023)   327,623       363,080  
    Equity securities, at fair value   19,762       1,270  
    Federal Home Loan Bank stock   112,115       79,217  
    Loans held for sale   162,453       1,785  
    Loans held for investment   18,659,370       10,871,916  
    Less allowance for credit losses   193,432       107,200  
    Net loans   18,628,391       10,766,501  
    Foreclosed assets, net   9,473       11,651  
    Banking premises and equipment, net   119,622       70,998  
    Accrued interest receivable   91,160       58,966  
    Intangible assets   819,230       457,942  
    Bank-owned life insurance   405,893       243,050  
    Other assets   582,702       287,768  
    Total assets $ 24,051,825     $ 14,210,810  
           
    Liabilities and Stockholders’ Equity      
    Deposits:      
    Demand deposits $ 13,775,991     $ 8,020,889  
    Savings deposits   1,679,667       1,175,683  
    Certificates of deposit of $250,000 or more   789,342       218,549  
    Other time deposits   2,378,813       877,393  
    Total deposits   18,623,813       10,292,514  
    Mortgage escrow deposits   42,247       36,838  
    Borrowed funds   2,020,435       1,970,033  
    Subordinated debentures   401,608       10,695  
    Other liabilities   362,515       210,134  
    Total liabilities   21,450,618       12,520,214  
           
    Stockholders’ equity:      
    Preferred stock, $0.01 par value, 50,000,000 shares authorized, none issued   —       —  
    Common stock, $0.01 par value, 200,000,000 shares authorized, 137,565,966 shares issued and 130,489,493 shares outstanding as of December 31, 2024 and 75,537,186 outstanding as of December 31, 2023.   1,376       832  
    Additional paid-in capital   1,834,495       989,058  
    Retained earnings   989,111       974,542  
    Accumulated other comprehensive loss   (135,355 )     (141,115 )
    Treasury stock   (88,420 )     (127,825 )
    Unallocated common stock held by the Employee Stock Ownership Plan   —       (4,896 )
    Common Stock acquired by the Directors’ Deferred Fee Plan   —       (2,694 )
    Deferred Compensation – Directors’ Deferred Fee Plan   —       2,694  
    Total stockholders’ equity   2,601,207       1,690,596  
    Total liabilities and stockholders’ equity $ 24,051,825     $ 14,210,810  
     
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Consolidated Statements of Income
    Three months ended December 31, 2024, September 30, 2024 (Unaudited) and December 31, 2023,
    and year ended December 31, 2024 (Unaudited) and 2023
    (Dollars in Thousands, except per share data)
                       
      Three Months Ended   Year Ended
      December 31,   September 30,   December 31,   December 31,   December 31,
        2024       2024     2023       2024       2023  
    Interest and dividend income:                  
    Real estate secured loans $ 194,236     $ 197,857   $ 109,112     $ 655,868     $ 408,942  
    Commercial loans   75,978       81,183     34,939       251,793       128,854  
    Consumer loans   10,815       12,947     5,020       36,635       18,439  
    Available for sale debt securities, equity securities and Federal Home Loan Bank stock   27,197       25,974     12,042       85,895       46,790  
    Held to maturity debt securities   2,125       2,136     2,303       8,885       9,362  
    Deposits, federal funds sold and other short-term investments   1,596       2,425     755       7,062       3,433  
    Total interest income   311,947       322,522     164,171       1,046,138       615,820  
                       
    Interest expense:                  
    Deposits   105,922       110,009     50,579       349,523       159,459  
    Borrowed funds   15,652       19,923     17,527       73,523       55,856  
    Subordinated debt   8,636       8,889     277       22,478       1,051  
    Total interest expense   130,210       138,821     68,383       445,524       216,366  
    Net interest income   181,737       183,701     95,788       600,614       399,454  
    Provision charge (benefit) for credit losses   8,880       9,299     (863 )     87,564       28,168  
    Net interest income after provision for credit losses   172,857       174,402     96,651       513,050       371,286  
                       
    Non-interest income:                  
    Fees   9,687       9,816     6,102       34,114       24,396  
    Wealth management income   7,655       7,620     6,843       30,533       27,669  
    Insurance agency income   3,289       3,631     2,759       16,201       13,934  
    Bank-owned life insurance   2,261       4,308     1,644       11,709       6,482  
    Net (loss) gain on securities transactions   (14 )     2     (7 )     (2,986 )     30  
    Other income   1,297       1,478     1,627       4,542       7,318  
    Total non-interest income   24,175       26,855     18,968       94,113       79,829  
                       
    Non-interest expense:                  
    Compensation and employee benefits   59,937       63,468     38,773       218,341       148,497  
    Net occupancy expense   12,562       12,790     7,797       45,014       32,271  
    Data processing expense   9,881       10,481     6,457       35,579       22,993  
    FDIC Insurance   3,411       4,180     2,890       12,964       8,578  
    Amortization of intangibles   9,511       12,231     721       28,931       2,952  
    Advertising and promotion expense   1,485       1,524     1,100       5,146       4,822  
    Merger-related expenses   20,184       15,567     2,477       56,867       7,826  
    Other operating expenses   17,352       15,761     15,636       54,706       47,397  
    Total non-interest expense   134,323       136,002     75,851       457,548       275,336  
    Income before income tax expense   62,709       65,255     39,768       149,615       175,779  
    Income tax expense   14,185       18,850     12,456       34,090       47,381  
    Net income $ 48,524     $ 46,405   $ 27,312     $ 115,525     $ 128,398  
                       
    Basic earnings per share $ 0.37     $ 0.36   $ 0.36     $ 1.05     $ 1.72  
    Average basic shares outstanding   130,067,244       129,941,845     74,995,705       109,668,911       74,844,489  
                       
    Diluted earnings per share $ 0.37     $ 0.36   $ 0.36     $ 1.05     $ 1.71  
    Average diluted shares outstanding   130,163,872       130,004,870     75,041,545       109,712,732       74,873,256  
     
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Net Interest Margin Analysis
    Quarterly Average Balances
    (Dollars in Thousands) (Unaudited)
     
      December 31, 2024   September 30, 2024   December 31, 2023
      Average Balance   Interest   Average
    Yield/Cost    		   Average Balance   Interest   Average
    Yield/Cost    		   Average Balance   Interest   Average
    Yield/Cost
    Interest-Earning Assets:                                  
    Deposits $ 117,998   $ 1,596   5.38 %   $ 179,313   $ 2,425   5.38 %   $ 54,998   $ 745   5.37 %
    Federal funds sold and other short-term investments   —     —   — %     —     —   — %     838     10   4.39 %
    Available for sale debt securities   2,720,065     25,063   3.69 %     2,644,262     24,884   3.72 %     1,647,906     9,858   2.39 %
    Held to maturity debt securities, net (1)   328,147     2,125   2.59 %     342,217     2,136   2.50 %     364,433     2,303   2.53 %
    Equity securities, at fair value   19,920     —   — %     19,654     —   — %     1,016     —   — %
    Federal Home Loan Bank stock   86,885     2,134   9.82 %     91,841     1,090   4.75 %     94,149     2,184   9.28 %
    Net loans: (2)                                  
    Total mortgage loans   13,287,942     194,236   5.75 %     13,363,265     197,857   5.83 %     8,028,300     109,112   5.34 %
    Total commercial loans   4,587,048     75,978   6.54 %     4,546,088     81,183   7.05 %     2,329,430     34,939   5.90 %
    Total consumer loans   612,453     10,815   7.02 %     622,586     12,947   8.27 %     302,471     5,020   6.58 %
    Total net loans   18,487,443     281,029   5.99 %     18,531,939     291,987   6.21 %     10,660,201     149,071   5.50 %
    Total interest-earning assets $ 21,760,458   $ 311,947   5.66 %   $ 21,809,226   $ 322,522   5.84 %   $ 12,823,541   $ 164,171   5.04 %
                                       
    Non-Interest Earning Assets:                                  
    Cash and due from banks   159,151             341,505             111,610        
    Other assets   1,988,905             2,097,307             1,179,475        
    Total assets $ 23,908,514           $ 24,248,038           $ 14,114,626        
                                       
    Interest-Bearing Liabilities:                                  
    Demand deposits $ 10,115,827   $ 71,265   2.80 %   $ 9,942,053   $ 74,864   3.00 %   $ 5,856,916   $ 39,648   2.69 %
    Savings deposits   1,677,725     968   0.23 %     1,711,502     1006   0.23 %     1,183,857     602   0.20 %
    Time deposits   3,187,172     33,689   4.21 %     3,112,598     34,139   4.36 %     1,095,468     10,329   3.74 %
    Total Deposits   14,980,724     105,922   2.81 %     14,766,153     110,009   2.96 %     8,136,241     50,579   2.47 %
    Borrowed funds   1,711,806     15,652   3.64 %     2,125,149     19,923   3.73 %     1,873,822     17,527   3.71 %
    Subordinated debentures   400,852     8,636   8.57 %     413,267     8,889   8.56 %     10,663     277   10.27 %
    Total interest-bearing liabilities   17,093,382     130,210   3.03 %     17,304,569     138,821   3.19 %     10,020,726     68,383   2.71 %
                                       
    Non-Interest Bearing Liabilities:                                  
    Non-interest bearing deposits   3,788,056             3,741,160             2,169,542        
    Other non-interest bearing liabilities   403,057             541,839             281,504        
    Total non-interest bearing liabilities   4,191,113             4,282,999             2,451,046        
    Total liabilities   21,284,495             21,587,568             12,471,772        
    Stockholders’ equity   2,624,019             2,660,470             1,642,854        
    Total liabilities and stockholders’ equity $ 23,908,514           $ 24,248,038           $ 14,114,626        
                                       
    Net interest income     $ 181,737           $ 183,701           $ 95,788    
    Net interest rate spread         2.63 %           2.65 %           2.33 %
    Net interest-earning assets $ 4,667,076           $ 4,504,657           $ 2,802,815        
    Net interest margin (3)         3.28 %           3.31 %           2.92 %
    Ratio of interest-earning assets to total interest-bearing liabilities 1.27x           1.26x           1.28x        
     
       
    (1 ) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
    (2 ) Average outstanding balances are net of the allowance for loan losses, deferred loan fees and expenses, loan premiums and discounts and include non-accrual loans.
    (3 ) Annualized net interest income divided by average interest-earning assets.
         
    The following table summarizes the quarterly net interest margin for the previous five quarters.      
           
      12/31/24   9/30/24   6/30/24   3/31/24   12/31/23
      4th Qtr.   3rd Qtr.   2nd Qtr.   1st Qtr.   4th Qtr.
    Interest-Earning Assets:                  
    Securities 3.78 %   3.69 %   3.40 %   2.87 %   2.79 %
    Net loans 5.99 %   6.21 %   6.05 %   5.51 %   5.50 %
    Total interest-earning assets 5.66 %   5.84 %   5.67 %   5.06 %   5.04 %
                       
    Interest-Bearing Liabilities:                  
    Total deposits 2.81 %   2.96 %   2.84 %   2.60 %   2.47 %
    Total borrowings 3.64 %   3.73 %   3.83 %   3.60 %   3.71 %
    Total interest-bearing liabilities 3.03 %   3.19 %   3.09 %   2.80 %   2.71 %
                       
    Interest rate spread 2.63 %   2.65 %   2.58 %   2.26 %   2.33 %
    Net interest margin 3.28 %   3.31 %   3.21 %   2.87 %   2.92 %
                       
    Ratio of interest-earning assets to interest-bearing liabilities 1.27x   1.26x   1.25x   1.28x   1.28x
     
    PROVIDENT FINANCIAL SERVICES, INC. AND SUBSIDIARY
    Net Interest Margin Analysis
    Average Year to Date Balances
    (Dollars in Thousands) (Unaudited)
                           
      December 31, 2024   December 31, 2023
      Average       Average   Average       Average
      Balance   Interest   Yield/Cost   Balance   Interest   Yield/Cost
    Interest-Earning Assets:                      
    Deposits $ 36,932   $ 7,062   5.23 %   $ 65,991   $ 3,421   5.18 %
    Federal funds sold and other short-term investments   —     —   — %     255     12   4.55 %
    Available for sale debt securities   2,323,158     77,617   3.32 %     1,745,105     40,678   2.33 %
    Held to maturity debt securities, net (1)   344,903     8,885   2.58 %     375,436     9,362   2.49 %
    Equity securities, at fair value   12,367     —   — %     1,020     —   — %
    Federal Home Loan Bank stock   85,358     8,278   9.70 %     81,797     6,112   7.47 %
    Net loans: (2)                      
    Total mortgage loans   11,333,540     655,868   5.79 %     7,813,764     408,942   5.23 %
    Total commercial loans   3,768,388     251,793   6.68 %     2,251,175     128,854   5.72 %
    Total consumer loans   498,503     36,635   7.35 %     302,681     18,439   6.09 %
    Total net loans   15,600,431     944,296   6.05 %     10,367,620     556,235   5.37 %
    Total interest-earning assets $ 18,403,149   $ 1,046,138   5.68 %   $ 12,637,224   $ 615,820   4.87 %
                           
    Non-Interest Earning Assets:                      
    Cash and due from banks   233,829             119,232        
    Other assets   1,745,170             1,159,011        
    Total assets $ 20,382,148           $ 13,915,467        
                           
    Interest-Bearing Liabilities:                      
    Demand deposits $ 8,480,380   $ 245,874   2.90 %   $ 5,747,671   $ 125,471   2.18 %
    Savings deposits   1,502,852     3,443   0.23 %     1,282,062     2,184   0.17 %
    Time deposits   2,367,144     100,206   4.23 %     994,901     31,804   3.20 %
    Total deposits   12,350,376     349,523   2.83 %     8,024,634     159,459   1.99 %
    Borrowed funds   1,983,674     73,523   3.71 %     1,636,572     55,856   3.41 %
    Subordinated debentures   262,275     22,478   8.57 %     10,588     1,051   9.92 %
    Total interest-bearing liabilities $ 14,596,325   $ 445,524   3.05 %   $ 9,671,794   $ 216,366   2.24 %
                           
    Non-Interest Bearing Liabilities:                      
    Non-interest bearing deposits   3,120,571             2,328,557        
    Other non-interest bearing liabilities   385,727             270,587        
    Total non-interest bearing liabilities   3,506,298             2,599,144        
    Total liabilities   18,102,623             12,270,938        
    Stockholders’ equity   2,279,525             1,644,529        
    Total liabilities and stockholders’ equity $ 20,382,148           $ 13,915,467        
                           
    Net interest income     $ 600,614           $ 399,454    
    Net interest rate spread         2.63 %           2.63 %
    Net interest-earning assets $ 3,806,824           $ 2,965,430        
    Net interest margin (3)         3.26 %           3.16 %
    Ratio of interest-earning assets to total interest-bearing liabilities 1.26x           1.31x        
                           
                           
    (1) Average outstanding balance amounts shown are amortized cost, net of allowance for credit losses.
    (2) Average outstanding balance are net of the allowance for loan losses, deferred loan fees and expenses, loan premium and discounts and include non-accrual loans.
    (3) Annualized net interest income divided by average interest-earning assets.
     
    The following table summarizes the year-to-date net interest margin for the previous three years.
                 
      Year Ended  
      December 31,
    2024    		   December 31,
    2023    		   December 31,
    2022    		  
    Interest-Earning Assets:            
    Securities 3.43 %   2.62 %   1.86 %  
    Net loans 6.05 %   5.37 %   4.26 %  
    Total interest-earning assets 5.68 %   4.87 %   3.76 %  
                 
    Interest-Bearing Liabilities:            
    Total deposits 2.83 %   1.99 %   0.47 %  
    Total borrowings 3.71 %   3.41 %   1.23 %  
    Total interest-bearing liabilities 3.05 %   2.24 %   0.54 %  
                 
    Interest rate spread 2.63 %   2.63 %   3.22 %  
    Net interest margin 3.26 %   3.16 %   3.37 %  
                 
    Ratio of interest-earning assets to interest-bearing liabilities 1.26x   1.31x   1.38x  
                 

    The MIL Network –

  • MIL-OSI: Darren Morcombe Acquires Common Shares of Southern Cross Gold Consolidated Ltd.

    Source: GlobeNewswire (MIL-OSI)

    VANCOUVER, British Columbia, Jan. 28, 2025 (GLOBE NEWSWIRE) — Darren Morcombe announces that his security holding percentage in the common shares (each, a “Share”) of Southern Cross Gold Consolidated Ltd. (the “Company”), following the Company’s completion of a scheme of arrangement with Southern Cross Gold Ltd. (“SXG1”), as announced in the Company’s press release dated January 23, 2025, is approximately 13.22% on a partially diluted basis.

    Effective January 23, 2025, the Company, an issuer listed on the TSX Venture Exchange (TSXV: SXGC) and on the Australian Securities Exchange (ASX: SX2), with its head office at Suite 1305, 1090 West Georgia Street, Vancouver, British Columbia, V6E 3V7, acquired pursuant to a scheme of arrangement all the issued share capital of SXG1 it did not previously own in consideration for the issuance of 125,041,031 Shares at an exchange ratio of 1:1 and a deemed price of $3.35 per Share (the “Transaction”). Prior to the Transaction, SXG1 was listed on the Australian Securities Exchange.

    Immediately prior to the completion of the Transaction, Mr. Morcombe owned and controlled 5,454,286 Shares, representing approximately 5.65% of the then-outstanding Shares on a partially diluted basis.        

    Pursuant to the Transaction, Mr. Morcombe acquired control and ownership over an additional 22,546,434 Shares and 1,500,000 options to purchase Shares, resulting in control and ownership over a total of 28,000,720 Shares and 1,500,000 options to purchase Shares, representing approximately 13.22% of the outstanding Shares on a partially diluted basis, and a change in Mr. Morcombe’s security holding percentage in the Shares of 7.57%.

    Mr. Morcombe acquired the Shares for investment purposes. Mr. Morcombe may, depending on various factors, including, without limitation, market and other conditions, increase or decrease his beneficial ownership, control or direction over Shares or other securities of the Company.

    For further information, please contact:

    Mariana Bermudez
    Telephone: 604-685-9316

    This news release is issued pursuant to the early warning requirements of applicable securities laws. A copy of the Early Warning Report will appear on the Company’s profile on the SEDAR+ website at www.sedarplus.ca. A copy of the Early Warning Report may also be obtained by contacting Mariana Bermudez.

    The MIL Network –

  • MIL-OSI: Fairfax India Shareholders Approve One-Time Deviation From Investment Concentration Restriction

    Source: GlobeNewswire (MIL-OSI)

    NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

    TORONTO, Jan. 28, 2025 (GLOBE NEWSWIRE) — Fairfax India Holdings Corporation (“Fairfax India” or the “Company”) (TSX: FIH.U) is pleased to announce the voting results from its special meeting of shareholders held on January 28, 2025 (the “Special Meeting”) in connection with a proposed one-time deviation from the Company’s investment concentration restriction set forth in its by-laws (the “Investment Concentration Restriction”) in order to complete the previously announced acquisition of an additional 10% equity interest in Bangalore International Airport Limited (the “Additional BIAL Investment”).

    The special resolution to approve the one-time deviation from the Investment Concentration Restriction required the approval of the holders of multiple voting shares and subordinate voting shares of the Company, each voting separately as a class. At the Special Meeting, the special resolution was approved by (i) 100% of the votes cast by holders of multiple voting shares, and (ii) approximately 99% of the votes cast by holders of subordinate voting shares.

    Completion of the Additional BIAL Investment remains subject to receipt of applicable third party consents and other customary closing conditions. Assuming that the remaining conditions to closing are satisfied, it is expected that the Additional BIAL Investment will close in Q1 2025.

    About Fairfax India

    Fairfax India is an investment holding company whose objective is to achieve long-term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, India.

    For further information, contact: John Varnell, Vice President, Corporate Affairs
      (416) 367-4755
       

    This press release may contain forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements may relate to the Company’s or an Indian Investment’s future outlook and anticipated events or results and may include statements regarding the financial position, business strategy, growth strategy, budgets, operations, financial results, taxes, dividends, plans and objectives of the Company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities of the Company, an Indian Investment, or the Indian market are forward-looking statements. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate” or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will” or “will be taken”, “occur” or “be achieved”.

    Forward-looking statements are based on our opinions and estimates as of the date of this press release, and they are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to the following factors: oil price risk; geographic concentration of investments; foreign currency fluctuation; volatility of the Indian securities markets; investments may be made in foreign private businesses where information is unreliable or unavailable; valuation methodologies involve subjective judgments; financial market fluctuations; pace of completing investments; minority investments; reliance on key personnel and risks associated with the Investment Advisory Agreement; disruption of the Company’s information technology systems; lawsuits; use of leverage; significant ownership by Fairfax may adversely affect the market price of the subordinate voting shares; weather risk; taxation risks; emerging markets; MLI; economic risk; trading price of subordinate voting shares relative to book value per share risk; and economic disruptions from the after-effects of the COVID-19 pandemic and the conflicts in Ukraine and the Middle East. Additional risks and uncertainties are described in the Company’s annual information form dated March 8, 2024 which is available on SEDAR+ at www.sedarplus.ca and on the Company’s website at www.fairfaxindia.ca. These factors and assumptions are not intended to represent a complete list of the factors and assumptions that could affect the Company. These factors and assumptions, however, should be considered carefully.

    Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements contained herein, except as required by applicable securities laws.

    The MIL Network –

  • MIL-OSI Submissions: Economy Analysis – KOF-NZZ survey: where do Swiss economists stand on key economic policy issues?

    Source: KOF Economic Institute

    KOF has collaborated with the Neue Zürcher Zeitung (NZZ) newspaper to survey economists on fundamental and current economic questions. The results show that they reject state intervention such as rent controls and trade tariffs. On the other hand, opinions are divided along political lines when it comes to questions about easing Switzerland’s debt brake or subsidising environmentally friendly technologies.

    The December 2024 survey consisted of 19 statements from various economic subject areas. Academic research economists based in Switzerland were questioned. 

    A total of 177 responses were received, which represents a response rate of 21 per cent.
    The respondents* were also asked about three characteristics: their age, gender and political affiliation. As far as political affiliation is concerned, the proportion of respondents defining themselves as being (more) to the left (36 per cent) is higher than the proportion defining themselves as (more) to the right (20 per cent). 

    A large proportion (44 per cent) place themselves politically in the centre. However, it should be noted that 18 per cent of respondents did not answer the question about their political affiliation. A comparison of these characteristics shows that women and young people (tend to) position themselves on the left politically. 
    This is consistent with surveys (in German, French or Italian) conducted by the Federal Statistical Office (FSO) among the Swiss population as a whole. The KOF-NZZ survey shows that political affiliation has a significant influence on the responses to 13 out of the 19 questions in the survey.

    Competition and regulation: mostly sceptical about intervention

    Four questions about market intervention show that the economists surveyed tend to favour only little regulation. A majority (71 per cent) are of the opinion that rent controls (tend to) reduce the quantity and quality of housing supply. Respondents who tend to define themselves politically as right-wing overwhelmingly agree with this statement (93 per cent). 

    Among left-leaning economists, around half (51 per cent) agree (25 per cent of them are undecided, i.e. neither agree nor disagree). There is unanimity on the question of whether tariffs and import quotas reduce a country’s material prosperity. A total of 81 per cent of economists (tend to) agree with this statement. This figure rises to 93 per cent among those with a right-wing political affiliation and is 70 per cent among those on the left.

    The view that wage controls and/or price controls should (preferably) not be used as a means of combatting inflation is very widely held among the survey respondents, with 83 per cent agreeing with this opinion (93 per cent of right-wing respondents, 81 per cent of left-wing respondents and 86 per cent of those in the centre).

    By contrast, the responses to the question of whether a binding minimum wage increases unemployment among young people and unskilled workers are less clear-cut: overall, 44 per cent (tend to) agree with this statement while 38 per cent (tend to) disagree. 

    A high proportion (18 per cent) neither agree nor disagree with the statement. The political affiliations are divided in their assessment of this question. While the majority of (more) right-wing respondents (72 per cent) agree with the statement that unemployment will (tend to) increase, the corresponding figure is 50 per cent for respondents from the centre. In contrast, the majority of (more) left-wing respondents (tend to) reject this statement (60 per cent).

    Regulation of large Swiss banks: too-big-to-fail amendment controversial

    Since Credit Suisse was acquired by UBS, the regulation of big banks has once again become the focus of public debate. Economists do not agree on whether it would be possible in principle to amend too-big-to-fail regulation, so that a major Swiss bank could be wound up without any risk to taxpayers in the event of a crisis. 47 per cent (tend to) agree with this statement, 14 per cent neither agree nor disagree, and 39 per cent (tend to) disagree. The influence of political affiliation on response behaviour is not very pronounced here.

    Public debt: considered too high in many advanced economies

    The COVID-19 pandemic has led to a sharp increase in government debt in many countries. This has triggered a broad debate about the extent to which public debt is too high in several countries. Overall, around two-thirds of survey respondents (tend to) consider it to be too high in many advanced economies. The majority of economists who define themselves as politically (more) to the right or in the centre agree with this statement (86 per cent and 75 per cent respectively). The situation is different in the case of respondents who define themselves politically as (more) to the left: 44 per cent of them agree with this statement, 30 per cent neither agree nor disagree, and 26 per cent disagree.

    In Switzerland, the government spending ratio – i.e. public spending as a share of gross domestic product – is not considered to be too high. More than two-thirds of survey respondents reject the statement that the government spending ratio is too high. This view is fairly widespread across the political spectrum, although not equally pronounced in all cases. 48 per cent of respondents who define themselves as (more) right-wing reject this statement, 11 per cent are undecided and 41 per cent agree. The majority of other political affiliations reject this statement (59 per cent of respondents who define themselves as centrists and 90 per cent of those on the left).

    The economists agree less about Switzerland’s debt brake. Overall, 37 per cent agree with the statement that the debt brake should be relaxed, 17 per cent are undecided and 46 per cent disagree. Of the (more) right-wing economists, 71 per cent disagree with the statement. Of those respondents who define themselves politically as centrists, 45 per cent disagree and 33 per cent agree. And, of the economists who see themselves as (more) left-wing, 47 per cent agree and 34 per cent disagree.

    Inequality: wealth distribution too unequal according to around half of respondents

    The economists were also asked about their views on inequality in Switzerland. A distinction was made here between disposable income and wealth. 41 per cent of respondents stated that disposable incomes should (probably) be distributed more equally. On the other hand, 36 per cent (tend to) reject this statement. However, the answers differed considerably depending on the respondents’ political preferences. 71 per cent of those with (more) left-wing leanings agree with the statement that incomes should be distributed more equally, while the same proportion of those with (more) right-wing leanings reject this statement. There is a mixed picture among economists who see themselves politically as centrists, with 30 per cent agreeing and 41 per cent disagreeing with the statement.

    56 per cent consider the distribution of wealth to be (probably) too unequal. 29 per cent (tend to) reject this statement. This means that wealth inequality in Switzerland is viewed more critically than income inequality. However, the influence of political affiliation can be felt here in a similar way to the issue of income inequality. 75 per cent of right-wing respondents disagree with the statement that wealth should be distributed more equally, whereas 88 per cent of left-wing respondents agree with it. 53 per cent of those in the centre agree with the statement.

    Causes of inflation: monetary explanation widespread

    As far as the causes of inflation are concerned, a distinction can be made between monetarist and non-monetarist (e.g. Keynesian, supply-side or structural) explanations. Monetarists believe that inflation is a monetary phenomenon. This means that inflation – particularly beyond the short term – is a consequence of an expansion of the money supply that is greater than the increase in the real production of goods and services. Keynesian inflation theory, on the other hand, focuses on the Phillips curve, which shows that unemployment and the inflation rate are negatively correlated in the short term.

    Both theories tend to meet with approval in the survey. However, approval of the monetarist approach is slightly higher: 58 per cent agree with the statement that inflation is (more likely to be) a monetary phenomenon. In contrast, just under half of respondents (51 per cent) are convinced that unemployment can be reduced in the short term by a higher inflation rate. Views on monetarism differ according to the respondents’ political affiliations: 76 per cent of the (more) right-wing respondents (tend to) agree with monetarism theory, while 68 per cent of economists in the centre of the political spectrum (tend to) agree. Of those respondents on the (more) left wing of the spectrum, 34 per cent (tend to) agree and 47 per cent (tend to) disagree. In contrast, the approval rates for the short-term Phillips curve do not differ greatly across the political spectrum (left: 50 per cent, centre: 61 per cent, right: 45 per cent).

    Environmental policy: disagreement over industrial subsidies

    The economists surveyed also commented on key environmental policy issues. There is disagreement on the question of whether the transition to green technologies in Switzerland should be subsidised by industry. While a total of 45 per cent of the economists surveyed were (mainly) in favour of this, 41 per cent were (mainly) against this approach. A further 14 per cent were undecided. The respondents’ political affiliations play a significant role in this question.

    Industrial subsidies are rejected by 71 per cent of respondents who define themselves as (more) politically right-wing, as do 46 per cent of those in the political centre. In contrast, 65 per cent of respondents on the (more) left wing of the spectrum are in favour of such subsidies.

    On the other hand, the general attitude towards combatting pollution through emissions taxes rather than through the statutory imposition of limits is clearer. A clear majority of 78 per cent overall (tend to) prefer the introduction of emissions taxes over the imposition of limits. This preference applies across the political spectrum.

    There is also a consensus when it comes to assessing the potential of new technologies. A total of 72 per cent of respondents (tend to) believe that carbon-neutral economic growth will be possible as a result of technological innovation. Only 12 per cent are (mainly) sceptical, while 16 per cent are undecided.

    The role of central banks in climate policy is another topic that is repeatedly the subject of intense debate. In April 2024, for example, the National Council discussed climate rules for the Swiss National Bank (SNB). 62 per cent of the economists responding to the KOF-NZZ survey generally (tend to) reject the inclusion of climate targets in central banks’ mandates. By contrast, 28 per cent would (tend to) be in favour of such an extension of these mandates. However, the responses given differ significantly depending on political affiliation. 86 per cent of (more) right-wing respondents and 70 per cent of those located in the political centre (tend to) reject the inclusion of climate targets by central banks. Respondents on the (more) left wing of the spectrum are less clear in their preferences: a narrow majority of 53 per cent are in favour, 15 per cent are neither in favour nor against, and 32 per cent are opposed. It is also clear that female economists are more in favour of including climate targets than male economists.

    Political views most influential in assessing distribution issues

    The respondents’ political views play a role in their responses to the majority of questions. This influence is particularly strong in the case of questions on the distribution of both wealth and income. However, the responses to some of the questions on climate policy also differ according to political affiliation – for example, the role of central banks in climate policy or the use of industrial subsidies. The respondents’ political affiliations are also of great importance when assessing the impact of minimum wages and the public spending ratio in Switzerland.

    On the other hand, views across the political spectrum are similar when it comes to the potential of new technologies for carbon-neutral growth, assessing the introduction of emissions taxes, capital rules for banks, and too-big-to-fail regulation. Assessments of the Phillips curve also hardly differ across the political spectrum.

    ————————
    *Demographics of survey respondents:
    Of those surveyed, 14 per cent are younger than 35, 38 per cent are between 36 and 45, 22 per cent are between 46 and 55, and 26 per cent are older than 56. 84 per cent of respondents are male and 16 per cent are female. Broken down by age category, the proportion of women is highest (20 per cent) in the 36 to 45 age group. The lowest proportion of women (11 per cent) is in the over 56 age group.

    The KOF-NZZ survey of economists covers topics relevant to economic policy in Switzerland and provides a means of publicising the views of economists conducting academic research. The Neue Zürcher Zeitung (NZZ) newspaper is KOF’s media partner in the preparation and interpretation of this survey. KOF and the NZZ jointly conducted a survey of major fundamental and topical economic issues in December 2024. Some of the questions are updated formulations of an international survey conducted by Bruno S. Frey, Werner W. Pommerehne, Friedrich Schneider and Guy Gilbert in 1980 (link to the paper). The survey was conducted between 2 December and 20 December 2024. 854 economists were contacted. Responses were received from 177 economists at 19 institutions. (ref. https://news.ethz.ch/d?p00ce04y00o6iq00d0000l3i0000000003muuielzwweyd2e3r5ll4si000bik000000o2qwjku )

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: Business – Consultants And Interim Managers Launch BRICS Network

    Source: German Technology & Engineering Corporation (GTEC)

    Karlheinz Zuerl, Interim Manager of the Year 2024*, has set up an international business network to bridge the gap between Western industrialized nations and the BRICS countries.

    Berlin, January 28 2025 – A new international network of consultants and interim managers has been launched under the name “BRICS Project Network” to support Western companies in expanding their business in BRICS countries and vice versa. “The BRICS nations account for nearly half of the global population and produce over a third of the world’s economic output, surpassing the G7 countries,” explained Karlheinz Zuerl, CEO of the German Technology & Engineering Corporation (GTEC) based in Shanghai, China, which spearheads this initiative.

    Karlheinz Zuerl said: “The further development of economic relations between the Western industrialized nations and the BRICS community helps all parties involved. The new network reportedly includes China, Hong Kong, India and Southeast Asia (Malaysia, Indonesia, Vietnam, Thailand), the United Arab Emirates, Iran, Brazil and South America, Mexico, Canada (USMCA customs union), Russia, Eastern Europe and a number of African countries in the global south, such as South Africa, Ethiopia and Egypt.

    Wide Range Of Services

    Acting as a “bridge-builder” between these countries and the Western industrialized world, the new network offers a wide range of services: Management Consulting, Business Development, Project Management, Interim Management, Training and Education. Karlheinz Zuerl gave specific examples: “We carry out market analyses, set up international sales networks, initiate business partnerships and takeovers, represent companies at trade fairs and other events, take care of organizational development, look after human resources, set up branches on behalf of companies, carry out relocations and company transfers, optimize finances and local production and carry out restructuring to improve earnings.”

    According to the information provided, the consultants and managers in the network have many years of experience in a wide range of sectors. Examples given include: Manufacturing, automotive, mechanical and plant engineering, construction, electrical and electronics, domestic appliances, environmental technology, information technology, pharmaceuticals and communications technology. If required, interim managers can take on operational roles such as general management, commercial management, project or quality management, research and development, human resources and finance, sales and marketing or change management.

    Trade Disputes And Sanctions Weigh On Relations

    Trade disputes between the US and China and sanctions against Russia are putting a strain on economic relations. The economic relationship between the Western industrialized nations and the BRICS countries is under severe strain. These tensions have led the BRICS to seek alternatives to reduce their dependence on Western financial systems, for example by discussing a common currency or reducing the use of the US dollar in trade.

    “We are not politicians,” said Karlheinz Zuerl, “but business consultants and interim managers who build cross-border business relationships and investments that benefit all parties. Given the geopolitical tensions, the enormous economic potential for both parties is often underestimated. With experienced professionals like those in our network, this potential can be realized.”

    He points out that a number of BRICS countries play an important role in technological development, as attractive manufacturing locations and as suppliers of raw materials and energy to the Western industrial world. Without China, India, Russia and Brazil, the Western economy would be much poorer,” said Karlheinz Zuerl, underlining the importance of the BRICS countries today.

    * Karlheinz Zuerl was honoured by United Interim, the leading community for interim managers in Germany, Austria and Switzerland, and Steinbeis Augsburg Business School.

    GTEC (https://gtec.asia) helps Western industrial companies to overcome challenges in Asia. The focus is on business development, the establishment and expansion of branches and production facilities, as well as restructuring and turnaround measures to bring automotive suppliers and mechanical engineering companies in critical phases back into the profit zone. Under the direction of CEO Karlheinz Zuerl, a team of consultants, experts and interim managers is on hand to work on-site with the client if necessary. The CEO himself is available for tasks as an interim general manager and for executive consulting. GTEC’s list of references includes corporations such as BMW, Bosch, General Motors and Siemens, large medium-sized companies such as Hella, Schaeffler, Valeo and ZF, as well as smaller medium-sized companies that are less well known but are operating all the more.

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: Tech – DeepSeek overtakes ChatGPT with 50x Google Trends surge in a week – Finbold

    Source: Finbold

    The release of the latest version of the Chinese artificial intelligence (AI) model DeepSeek swiftly created a media and stock market storm as it, given the official costs of development, threw into disarray the massive investments made in Western AI companies.

    Finbold research uncovered that in a single week ending on Monday, January 27, Google Trends global score for DeepSeek soared fiftyfold, hitting 100 – the highest figure possible for a selected region and time frame.

    Though the score was the highest in China by far, the new model also soared above ChatGPT in the U.S.

    Hong Kong, likewise, saw exceptional interest and took second place, while the countries where DeepSeek was also highly searched for, in descending order, include Singapore, Tunisia, Morocco, Nepal, Algeria, Ethiopia, Jordan, and Kenya.

    Specifically, the AI model’s Google Trends score stood at 100 in China, 22 in Hong Kong, 16 in Singapore, and 6 in the U.S.

    DeepSeek’s popularity also emerges outside Google Trends

    The surge in interest was also evident on the Play Store, where the DeepSeek app took the top spot, leading to sufficient volume – and possibly a cyberattack – to ensure access is restricted to users with a Chinese phone number.

    Additionally, the emergence of a new major player in the AI industry triggered a stock market bloodbath, with the semiconductor giant Nvidia (NVDA) being hit particularly hard and losing approximately $600 billion in market capitalization – the single biggest one-company valuation drop in a single day.

    Still, as Andreja Stojanovic, a co-author of the research, pointed out, there were some immediate benefits:

    “The introduction of new and powerful competition has had an immediate positive effect on consumers, as OpenAI’s Sam Altman promised additional features to ChatGPT’s paying users.”

    Elsewhere, the tumult triggered some calls for a ban or restrictions on Chinese technology, akin to the tariffs and other protectionist measures imposed on Chinese electric vehicle (EV) makers.

    For more: https://finbold.com/deepseek-overtakes-chatgpt-with-50x-google-trends-surge-in-a-week/  

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: Russia-Ukraine Conflict – 3-year mark of war in Ukraine: Here’s the Data

    Source: Physicians for Human Rights (PHR)

    Approaching the three-year mark since Russia’s full-scale invasion of Ukraine on February 24, Physicians for Human Rights (PHR) and its Ukrainian partners share new data, resources, and experts available for interview to support your team’s coverage of this upcoming milestone.  

    PHR and partners have systematically documented attacks on health in Ukraine through a database and interactive map (attacksonhealthukraine.org). 

    A staggering 1582 attacks on health care facilities, workers, and infrastructure have been perpetrated since February 2022. We are currently analyzing recent attacks and will again update the map ahead of the three-year mark – if you would like a preview of the upcoming data release please let us know.  

    Additionally: a first-of-its-kind report published last month by PHR and Truth Hounds details how Russia’s widespread and systematic attacks on Ukraine’s energy grid have harmed health care workers and endangered patients. 

    92% of 2,261 Ukrainian health care workers we surveyed report experiencing power outages at their health care facility due to attacks on energy infrastructure. The report documents how Russia’s assault on Ukraine’s energy infrastructure led to interrupted or delayed surgeries, forcing surgeons to operate in darkness illuminated only by flashlights; failures in life support systems; discontinued flow of water to hospitals; diagnostic and treatment equipment becoming unusable; patients experiencing panic attacks and cardiac arrhythmia due to lack of power; impeded maternal care service delivery; and other impacts on health care provision. 

    Previously, a case study by PHR and partners documented how Russian authorities have systematically sought to target Ukraine’s health care system to cement their control over the civilian population in Ukrainian territories under occupation.  

    PHR and our medical and human rights partners across Ukraine have conducted a wide range of research and advocacy since the full-scale invasion began, from attacks on health care to supporting survivors of conflict-related sexual violence in Ukraine. PHR experts routinely brief policymakers across Ukraine, US, Europe, and the UN system on human rights in the country. 

    PHR experts are available as sources for your reporting on Ukraine and the upcoming three-year mark. This includes Uliana Poltavets, who leads PHR’s Ukraine work from Kyiv and has co-authored all publications noted above. Poltavets can share insights about efforts to hold Putin and Russian military officials accountable for war crimes; the impacts of attacks on the energy grid and hospitals; and the need for sustained international support for Ukraine.  

    In addition to Poltavets, PHR has a wide network of Ukrainian and international clinicians, researchers, and advocates with whom we can also connect you to support your reporting. This includes Roman Koval, head of research at the Ukrainian organization Truth Hounds, and PHR health and human rights researcher Dr. Houssam al-Nahhas, a Syrian physician who researches attacks on health care (and who himself survived attacks on health care by the Assad government).

    MIL OSI – Submitted News –

  • MIL-OSI United Nations: DR Congo crisis: ‘The violence must end now’, UN Security Council told

    Source: United Nations 4

    Peace and Security

    The UN Security Council convened its second emergency meeting in three days on Tuesday to address the escalating crisis in Goma – the regional capital of the eastern Democratic Republic of the Congo (DRC).

    Vivian van de Perre, Deputy Head of the UN Stabilization Mission in the DRC (MONUSCO), provided a detailed briefing from Goma, highlighting the dire humanitarian situation and the need for “urgent and coordinated international action,” to stop the fighting between Rwanda-backed M23 rebels and Congolese forces – as they battle for control of the city.

    She reported that the recent clashes have led to massive displacement, with over 178,000 people fleeing Kalehe territory after the M23 took control of Minova.

    More than 34,000 of those on the run have sought refuge in already overcrowded IDP sites in and around Goma, exacerbating the humanitarian crisis and overwhelming the city’s infrastructure.

    Rebels and Rwandan troops joint attack

    “Despite the appeals from Member States during the Security Council meeting on 26 January, the M23/RDF [Rwanda Defence Force] launched an attack on Goma, using heavy direct and indirect fire,” Ms. van de Perre stated.

    “These attacks have resulted in numerous civilian casualties, further displacement, and significant trauma among the population.”

    She emphasised the critical role of MONUSCO in providing refuge and protection, noting that the mission has received a large number of people seeking safety, including officials and armed elements who have surrendered.

    “MONUSCO’s bases are not able to accommodate the large number of surrendering elements and civilians seeking refuge,” she said. “The Uruguayan Battalion (URUBATT) alone has taken in approximately 1,200 Congolese soldiers and over a thousand civilians, placing immense pressure on resources.”

    UN bases ‘not safe’

    The situation is further complicated by damage to water tanks, compromising the security of UN personnel and property.

    “Our bases are not safe: two mortars have hit MONUSCO bases and compounds in the last three days, as well as numerous bullets,” Ms. van de Perre reported.

    “Installations of [formed police unit] staff in Jambar camp have been destroyed and burnt.”

    Casualty evacuation efforts remain a significant challenge, with peacekeepers injured during the fighting in Sake.

    Despite the closure of Goma airport, MONUSCO continues to facilitate medical evacuations with the help of SAMIDRC – the Southern African Development Community mission in DRC.

    Evacuation of injured ‘blue helmets’

    “We continue to do our utmost to ensure timely evacuation of injured peacekeepers and other casualties to our level 3 hospital in Goma despite continued challenges,” Ms. van de Perre said.

    The M23 and Rwandan forces’ capture of Goma’s international airport and their advance from multiple directions have heightened the risk of weapons proliferation, as combatants blend into the civilian population, the Deputy UN Special Representative continued.

    The mass influx of IDPs, separation of families, and escape of prisoners from Goma prison have increased the vulnerability of women and children to sexual and gender-based violence.

    Ms. van de Perre called on all parties to guarantee the protection of life and access to basic services, and to prevent sexual violence.

    “The degree of suffering that the population here in Goma and its environs is enduring is truly unimaginable,” she said.

    “Let us please draw on our humanity and do our utmost to bring an immediate end to such levels of violence and suffering.”

    In light of the ongoing conflict, Ms. van de Perre urged the establishment of humanitarian corridors between Goma, Minova and Bukavu, and the reopening of critical airports and border points.

    Political solution must be found

    She emphasised that military action cannot resolve the conflict and called for a resumption of the Luanda Process under the auspices of the Angolan Government to ensure de-escalation and “avert the looming threat of a third Congo war.”

    The briefing concluded with a call for urgent and coordinated international action to address the crisis in Goma. Despite the challenges, MONUSCO remains a vital lifeline for vulnerable groups, but its effectiveness is being severely tested by the ongoing violence and logistical difficulties.

    “The protection of civilians and the pursuit of a peaceful resolution must be prioritised to end the suffering in Goma,” MONUSCO’s deputy head stressed.

    MIL OSI United Nations News –

  • MIL-OSI New Zealand: Transport Sector – Transporting New Zealand backs speed limit changes

    Source: Ia Ara Aotearoa Transporting New Zealand

    National road freight association Ia Ara Aotearoa Transporting New Zealand has welcomed today’s Government announcement reversing speed limit reductions on 38 sections of the state highway network, saying the changes will reduce journey times and help avoid dangerous behaviour by frustrated drivers.
    Speed limits on 49 further sections of state highway will be put out for public consultation to allows local communities to have their say on whether to revert to previous speed limits.
    Chief Executive Dom Kalasih says the changes reflect the Government’s more balanced approach to speed management, taking a cost-benefit approach to speed limit setting.
    “Our members have been frustrated by blanket speed reductions around the country over the past four years that did not adequately consider the impact of increased journey times, dangerous overtaking and tailgating by frustrated drivers, and increased freight costs for businesses and consumers and we’ve made these points consistently to road controlling authorities across the country.
    “We’re pleased to see the programme of speed limit reversals getting underway, as directed by the Government’s Setting of Speed Limits 2024 Land Transport Rule.”
    Kalasih says that while appropriate speed limits play a vital role in road safety, they need to be considered alongside good roading design and effective enforcement.
    “It is crucial that Government continues to invest in adequate maintenance, roading improvements, and effective enforcement of RIDS (restraints, impairment, distraction and speed).
    “Speed limit setting is only one key element of supporting road safety and reducing our road toll.” 
    About Ia Ara Aotearoa Transporting New Zealand
    Ia Ara Aotearoa Transporting New Zealand is the peak national membership association representing the road freight transport industry. Our members operate urban, rural and inter- regional commercial freight transport services throughout the country. 
    Road is the dominant freight mode in New Zealand, transporting 92.8% of the freight task on a tonnage basis, and 75.1% on a tonne-km basis. The road freight transport industry employs over 34,000 people across more than 4700 businesses, with an annual turnover of $6 billion.

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Economy – Reserve Bank NZ speech: Beyond the cycle – Growth and interest rates in the long run

    Source: Reserve Bank of New Zealand

    29 January 2025 – In a speech delivered today, Reserve Bank Chief Economist Paul Conway discussed New Zealand’s longer-term ‘potential output’ and its significance for monetary policy.

    “Understanding potential output is crucial for assessing whether the economy is running too hot or too cold from an inflation control perspective and for gauging medium-term growth prospects,” Mr Conway says.

    Mr Conway also outlined the Reserve Bank’s assessment of the ‘neutral interest rate’, which shapes expectations for where the OCR will tend to move over time, in the absence of economic shocks.

    The speech goes beyond the business cycle to explore New Zealand’s long-term economic challenges and key factors influencing future growth – including productivity growth. It also explores drivers behind changes in New Zealand’s neutral interest rate.

    Key insights from the speech include:

    • In the absence of future shocks, economic activity in New Zealand will tend towards the level of potential output, as pandemic-related disruptions fade. Likewise, without future shocks, the OCR will tend towards the neutral interest rate.
    • Over the next few years, with declining inward migration and weak productivity growth, potential output growth is likely to be modest. This will set a modest ‘speed limit’ on how fast the economy can grow without generating excess inflation pressure.
    • Unlocking higher investment and productivity growth is key to raising potential output growth and improving per capita incomes. This would also reduce the likelihood of negative recessionary economic growth during future periods of restrictive monetary policy.
    • Reserve Bank estimates suggest that the neutral interest rate has fallen over recent decades, given weak productivity growth and aging populations. Our research suggests that this decline may be reversing and that the long-term nominal neutral interest rate currently lies between 2.5% and 3.5%.

    Background notes

    What is potential output?
    Potential output is the level of goods and services the economy can sustainably supply without generating excess inflation or disinflation. It depends on the supply of inputs – capital and labour – and how productively they are combined to produce output. For example, if there are more people available to work, more capital to use, or better ways of doing things, then potential output increases.

    What is the neutral interest rate?
    The nominal neutral interest rate is the level of the Official Cash Rate (OCR) consistent with inflation being sustainably at target and the economy running at its potential output. Without future shocks, the neutral interest rate indicates where the OCR is likely to settle to keep inflation at the 2% target midpoint.
     

    More information

    Read the speech: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=2920e70068&e=f3c68946f8
    Watch the speech: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=e1dd2a8aa0&e=f3c68946f8

    MIL OSI New Zealand News –

  • MIL-OSI USA: Woman Sentenced for Fraud Scheme Involving Claims for Unnecessary Respiratory Tests Submitted with COVID-19 Tests

    Source: US State of California

    A California woman was sentenced today to nine years in prison for her role in fraudulently submitting claims to governmental and private insurance programs during the COVID‑19 pandemic for expensive respiratory pathogen panel (RPP) tests that were medically unnecessary and never ordered by health care providers.

    According to court documents, Lourdes Navarro, 66, of Glendale, and Imran Shams owned and controlled Matias Clinical Laboratory, doing business as Health Care Providers Laboratory (HCPL). Navarro and Shams conspired to obtain nasal swab specimens that enabled HCPL to test for COVID-19, as well as to obtain testing orders from physicians and other medical professionals. The specimens were collected from, among others, residents and staff at nursing homes, assisted living facilities, rehabilitation facilities, and similar types of facilities, and from students and staff at primary and secondary schools, for the purported purpose of conducting screening tests to identify and isolate individuals infected with COVID-19. However, Navarro and Shams caused HCPL to perform RPP tests on most of the specimens, even though only COVID-19 testing had been ordered and there was no medical justification for conducting RPP tests on asymptomatic individuals who needed only COVID-19 screening tests. Through HCPL, Navarro and Shams billed approximately $369 million for the RPP tests to Medicare, the Health Resources and Services Administration COVID-19 Uninsured Program, and a private health insurance company, and were reimbursed approximately $46.7 million for fraudulent claims.

    Navarro was also ordered to forfeit $11,662,939 in funds that the government had previously seized from three bank accounts. The total amount seized and forfeited from Navarro and Shams is $14,518,485. Navarro also was ordered to pay $46,735,400 in restitution.

    Navarro pleaded guilty on Oct. 5, 2023, to conspiracy to commit health care fraud and wire fraud. Shams pleaded guilty on Jan. 24, 2023, in the Central District of California to conspiracy to commit health care fraud and concealment of his exclusion from Medicare and was sentenced to 10 years in prison on Jan. 30, 2024. In addition, on May 29, 2024, Shams was sentenced to five years in prison in connection with his 2017 plea in the Eastern District of New York to conspiracy to commit money laundering, conspiracy to pay and receive kickbacks, and defrauding the United States by obstructing the lawful functions of the IRS, of which three years were ordered to run consecutive to the Central District of California sentence.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office, and Acting Special Agent in Charge Rochelle Wong of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Los Angeles Regional Office made the announcement.

    The FBI and HHS-OIG investigated the case.

    Trial Attorneys Gary A. Winters and Raymond E. Beckering III of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Maxwell Coll for the Central District of California handled the financial penalties.

    The Justice Department’s COVID-19 Fraud Enforcement Task Force marshals the resources of the department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, visit www.justice.gov/coronavirus.

    MIL OSI USA News –

  • MIL-OSI Security: New Jersey Man Pleads Guilty to Attempting to Provide Material Support to al Shabaab

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

    Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced today that KARREM NASR, a/k/a “Ghareeb Al-Muhajir,” pled guilty to attempting to provide material support to al Shabaab, a designated foreign terrorist organization before U.S. District Judge Analisa Torres.

    U.S. Attorney Danielle R. Sassoon said: “Karrem Nasr devoted himself to waging violent jihad against America and its allies. Inspired by the evil terrorist attack perpetrated by Hamas on October 7, 2023, Nasr, a U.S. citizen, traveled from Egypt to Kenya in an effort to join al Shabaab so that he could execute his jihadist mission of creating death and destruction.  Now, instead of perpetrating a deadly attack in the name of a foreign terrorist group, Nasr resides in federal prison.  I thank the career prosecutors of my office and our law enforcement partners for their extraordinary work in disrupting this plan and bringing a terrorist to justice.”

    According to the allegations in the court filings and statements made in Court:

    NASR is a 24-year-old U.S. citizen who moved from New Jersey to Egypt in or about July 2023.  Starting in at least in or about November 2023, NASR repeatedly expressed his desire and plans to join al Shabaab, a designated foreign terrorist organization that has attacked Americans and American allies around the world, and wage jihad, including in communications with an FBI confidential source (the “CS”), who was posing as a facilitator for terrorist organizations.[1]

    In communications exchanged with the CS and postings that NASR made online, NASR stated that he had been thinking about engaging in jihad for a long time, and he was particularly motivated to become a jihadi by the October 7, 2023, Hamas terrorist attack in Israel.  For example, in communications with the CS, NASR stated that the number one enemy was “evil America,” which he called the “head of the snake.”  In social media posts, NASR warned that “Jihad” was “coming soon to a US location near you,” posting airplane, bomb, and fire emojis:

    In further communications with the CS, NASR expressed his intent to join al Shabaab to receive military training and engage in jihad, that he was prepared to kill and be killed, and that he specifically aspired to be a martyr for the jihadist cause.  For example, NASR stated “I would like to become a martyr in the sake of Allah. . . .  I think in coming years, inshallah we are going to see here big events in Egypt and the other Arab countries.  Inshallah if this happens; I will come back to Egypt, inshallah to help the Muslims in Egypt in their struggle to establish here in Egypt.”

    Beyond his online postings and communications with the CS, NASR took specific and targeted steps in his effort to join and receive military training from al Shabaab.  Among other things, NASR made flight and lodging reservations for travel to Kenya, where he planned to meet members of al Shabaab for further travel to Somalia to join and train with the terrorist group.  In addition, the day before his flight, NASR told the CS that he planned to delete data from his cellphone and computer to ensure that if he were detained, law enforcement would not be able to recover evidence of his jihadist activities from those devices.  On December 14, 2023, as planned, NASR flew from Egypt to Kenya, where he then planned to transit into Somalia to join and train with al Shabaab.  Later that day, NASR was taken into custody by Kenyan authorities.  On December 28, 2023, NASR arrived in the U.S.

    *                *                *

    NASR, 24, of Lawrenceville, New Jersey, pled guilty to attempting to provide material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison.  NASR is scheduled to be sentenced by Judge Torres on June 30, 2025.

    The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

    Ms. Sassoon praised the outstanding efforts of the Federal Bureau of Investigation (“FBI”)’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department.  Ms. Sassoon also thanked the FBI’s Legal Attaché Office in Nairobi, Kenya, the Counterterrorism Section of the Department of Justice’s National Security Division, the Department of Justice’s Office of International Affairs, and the Kenyan Directorate of Criminal Investigations, including the Anti-Terrorism Police Unit and the Joint Terrorism Task Force-Kenya, for their assistance.

    This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Camille L. Fletcher, Kimberly J. Ravener, and Stephen Ritchin are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.
     

    [1] Communications referenced herein are described in substance and in part.

    MIL Security OSI –

  • MIL-OSI Security: Justice Department Secures Agreement Preventing Indiana Exhibitor and Dog Breeder from Violating the Animal Welfare Act

    Source: Office of United States Attorneys

    WASHINGTON — In a consent decree entered today by the U.S. District Court for the Northern District of Indiana, Indiana exhibitor and dog breeder, Vernon D. Miller, agreed to not apply for or engage in any activity that requires a Department of Agriculture (USDA) license for two years. If Miller is relicensed in the future, he must comply with Animal Welfare Act (AWA) regulations and standards necessary to provide humane and lawful care to the animals he exhibits and sells.

    A complaint filed in October alleged that Miller — individually and doing business as the Dutch Creek Farm Animal Park in Shipshewana, Indiana — had violated the AWA by failing to provide adequate veterinary care, safe and hospitable enclosures, appropriate enrichment and sanitary housing, food and water to his animals. The complaint also alleged that Miller had failed to maintain legally required records.

    At the time of the filing of the complaint, Miller had been cited for 90 AWA violations in just over a year, the highest number of citations for any USDA-licensed facility during that time period (2023-2024). Miller’s violations impacted over 300 animals that he exhibited to the public — including deer, zebra, exotic birds and primates — and dozens of dogs and puppies that he bred for sale as pets.

    The citations for multiple violations included unsanitary conditions (including stalls piled high with feces and food dishes coated in grime or mold), and failing to provide animals with sufficient shelter, failing to properly vaccinate puppies and failing to provide veterinary care for animals with illnesses or open wounds. The complaint alleged that such conditions had likely led to numerous animal deaths, with at least seven animals dying in the few months prior to the filing of the case.

    USDA suspended Miller’s license for 21 days starting on Oct. 9. The court entered a temporary restraining order against Miller on Oct. 28, requiring him to comply with multiple AWA regulations and standards, provide records and documentation to help monitor compliance and refrain from buying, selling, euthanizing or exhibiting animals without the consent of the United States or the court. The temporary restraining order expired on Dec. 2.

    “The maltreatment of animals entrusted to Mr. Miller’s care is a despicable act that deserves just intervention,” said Acting United States Attorney Tina L. Nommay.  “We will continue to work with our federal partners to identify and hold accountable those exhibitors and dog breeders who provide inhumane care to animals in violation of the Animal Welfare Act.” 

    “USDA is committed to ensuring the safety and wellbeing of animals protected under the Animal Welfare Act,” said Deputy Administrator Sarah Helming for USDA’s Animal Care program. “The partnership between USDA and DOJ helps to ensure enforcement of the AWA regulations for those who put regulated animals at risk.”

    In addition to not applying for or engaging in activity requiring a USDA license for at least two years, the consent decree, in effect for five years, outlines that Miller will allow USDA inspectors limited access to the facility, if it is open to the public, and will produce certain records for compliance monitoring during any time he is not licensed. If Miller applies for and receives a USDA license in the future, he agrees to comply with AWA regulations and standards that he had previously violated and to maintain veterinary and other accurate and complete records.

    USDA investigated the case and filed a parallel administrative enforcement action.

    Senior Trial Attorney Devon Flanagan and Trial Attorneys Kamela Caschette, Angela Mo and Chris Carrara of the Justice Department’s Wildlife and Marine Resources Section prosecuted the case, with support from Assistant U.S. Attorney Dirk DeLor for the Northern District of Indiana and USDA’s Office of General Counsel and Animal and Plant Health Inspection Service. 

    MIL Security OSI –