Category: Artificial Intelligence

  • MIL-OSI Russia: Digital Transformation of Management: All-Russian Conference Held at GUU

    Translation. Region: Russian Federal

    Source: State University of Management – Official website of the State –

    On April 24, the Institute of Information Systems of the State University of Management hosted the VII All-Russian scientific and practical conference “Digital Transformation of Management: Problems and Solutions”.

    Traditionally, the purpose of the conference is to exchange experience, information, and research results between scientists from leading universities, practicing specialists from IT companies, and start-up entrepreneurship, shaping the formation of “education-business-science” clusters.

    The organizers selected the best reports for participation, reflecting the modern scientific and practical interests of scientists from leading Russian universities in the field of developing digital solutions and control automation: State University of Management, Lomonosov Moscow State University, Moscow Aviation Institute, Financial University under the Government of the Russian Federation, Saratov State Technical University named after Yu.A. Gagarin, Crimean Federal University named after Vernadsky, Kazan Innovative University, etc.

    The event discussed issues of forming an individualized educational trajectory using a composition of educational technologies, integrating artificial intelligence into management processes, ensuring corporate information security, priorities and drivers of digitalization in agribusiness, using unmanned aerial vehicles and building platform solutions and hybrid DSS for managing processes in agriculture, developing a computer vision model for detecting documentary areas of interest, using mathematical modeling tools for analyzing mortgage lending, labor migration, etc.

    At the conference, Sergei Golovashov, Head of the Competence Center at Bell Integrator, also shared his experience in ensuring corporate information security.

    It is noteworthy that young scientists took an active part in this year’s conference: senior bachelors, master’s students and postgraduates of the IIS SUM.

    Participants of the conference “Digital Transformation of Management: Problems and Solutions” noted that holding such scientific events has great theoretical and practical significance for improving the processes of digitalization of management and solving new problems that arise as challenges to the development of modern society.

    Subscribe to the TG channel “Our GUU” Date of publication: 04/25/2025

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI: JZMOR Multilingual Service Upgrade: Breaking Communication Barriers for a Seamless Global Trading Experience

    Source: GlobeNewswire (MIL-OSI)

    GREENWOOD VILLAGE, Colo., April 25, 2025 (GLOBE NEWSWIRE) — Recently, JZMOR Exchange announced the completion of a comprehensive upgrade to its multilingual customer support system. This initiative aims to provide users from diverse linguistic backgrounds with a more localized service experience, further enhancing the convenience and smoothness of cross-cultural communication.

    JZMOR CEO Marsh Noah stated: “The globalization of the digital asset market is not just a competition of technology but also a contest of service experience. This upgrade to our multilingual support system is designed to better serve users from different cultural backgrounds, break language barriers, and provide every user with an equal and convenient financial service experience.”

    The upgrade covers several key aspects, including the expansion of supported languages, optimization of communication processes, and refined improvements in cultural adaptation. By analyzing user distribution data, the JZMOR team has added support for several popular languages, further broadening its coverage. Through a combination of intelligent customer service systems and human support, the platform can quickly respond to the needs of different users while ensuring both efficiency and accuracy.

    In addition, JZMOR has conducted in-depth cultural adaptation optimizations for language support, ensuring that customer service communication goes beyond mere translation to incorporate local cultural habits and communication etiquette. This significantly enhances the friendliness and smoothness of the user experience.

    As part of this multilingual upgrade, JZMOR introduced cutting-edge AI technology, bringing significant intelligence enhancements to the customer support system. The AI-driven intelligent customer service system leverages natural language processing (NLP) and deep learning technologies to quickly identify and provide personalized solutions to user inquiries.

    The JZMOR platform uses AI algorithms to analyze user language preferences and communication habits in real time, automatically matching them with the most suitable language and service strategy. This intelligent service not only reduces communication delays but also improves the accuracy and efficiency of responses.

    JZMOR consistently places user experience at the core of its strategy. Marsh Noah emphasized: “At JZMOR, we are committed to delivering a service experience that exceeds expectations. Through continuously optimized products and service systems, we ensure that every user can seamlessly participate in digital asset trading and achieve long-term wealth accumulation.”

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/a09569b3-3517-4962-967f-bc669522d4f1

    The MIL Network

  • MIL-OSI Russia: Students of Novosibirsk State University will be able to study development using programs from Yandex Education

    Translation. Region: Russian Federal

    Source: Novosibirsk State University – Novosibirsk State University –

    The educational modules were developed by Yandex experts and will be integrated into bachelor’s programs for IT specialists and will be enhanced with applied disciplines and company cases. At NSU, the platform for the implementation of the new modules will be Faculty of Mechanics and Mathematics. The university will be able to integrate one or several modules: on backend, frontend and mobile development. The program will have an academic supervisor from Yandex, who will be responsible for the content of the module and its adaptation at the university.

    — It is important for us that high-quality IT education is available to students all over Russia, so we are expanding our partnership with regional universities. Universities get access to educational content from the company’s experts and a course for teachers on modern methods of teaching IT disciplines. We also involve Yandex employees in teaching programs. And already in the new curriculum, students from 17 regions of the country will be able to study development on our modules — from Primorsky Krai to Kaliningrad Oblast, — noted Daria Kozlova, Director of Yandex Education.

    Students will master applied development in Python, JavaScript, React or Django, learn to work with API services and manage server infrastructure.

    — The Faculty of Mechanics and Mathematics strengthens partnerships with companies. We are glad that this year students of the Faculty of Mechanics and Mathematics will be able to become full participants in the program from Yandex Education. Now we are recruiting teachers, and then it is up to the students. I know that our students are interested in relevant applied knowledge, but the company’s course is a responsible matter, when choosing it, you need to correctly approach the balance of study time, — emphasized Anastasia Karpenko, Deputy Dean of the Faculty of Mechanics and Mathematics of NSU.

    From September 2025, educational programs from Yandex Education will appear for the first time in 5 new regions: Voronezh, Kaliningrad, Rostov, Tula regions and Krasnoyarsk Krai.

    This initiative is part of Yandex’s large-scale program to develop education. In 2025, Yandex will invest more than 5 billion rubles in training specialists in IT and artificial intelligence, launching new educational programs, and developing solutions for school and higher education. The total number of Yandex partner universities will reach 39, and the number of joint programs with universities will exceed 70. More than 15 thousand students will be able to study in them, which is 50% more than last year.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI: Digitalist Group Plc’s Business Review, 1 January – 31 March 2025

    Source: GlobeNewswire (MIL-OSI)

    DIGITALIST GROUP PLC                    Stock Exchange Release 25.4.2025 at 9:00

    Digitalist Group Plc’s Business Review, 1 January – 31 March 2025

    January–March 2025 (comparable figures for 2024 in parentheses):

    • Turnover: EUR 4.5 million (EUR 3.9 million), increase of 15.6%. 
    • EBITDA: EUR -0.1 million (EUR -0.4 million), -3.0% of turnover (-10.4%).
    • EBIT: EUR -0.3 million (EUR -0.6 million), -5.9% of turnover (-15.8%). 
    • Net income: EUR -1.0 million (EUR -1.0 million), -23.0% of turnover (-27.0%).
    • Earnings per share (diluted and undiluted): EUR -0.00 (EUR -0.00).
    • Number of employees at the end of the review period: 123 (125), reduction of 1.6%.

    CEO’s review

    I am pleased to report that Digitalist Group has started 2025 with improvements in both turnover and profitability compared to the same period last year. Our turnover for the first quarter reached EUR 4.5 million, up from EUR 3.9 million in the first quarter of 2024 — an increase of nearly 16%. This growth reflects our continuing efforts to grow in both Sweden and Finland, underscoring the resilience of our business in these key markets.

    Regarding profitability, our first quarter 2025 EBITDA came in at EUR -0.1 million, showing an improvement compared to EUR -0.4 million for the first quarter of 2024. Although we are still in the negative range, the decreased loss underscores the positive impact of our targeted cost-saving measures and more efficient collaboration within the group. 

    We continue to see steady demand in our Swedish operations, which remain a major revenue driver. While the Finnish market remains challenging, our longstanding relationships in both the public and private sectors have helped us in increasing revenue. We have been able to deliver impactful solutions, even in a difficult environment.

    Building on the launch of Digitalist Private AI Hub, we remain convinced that applied AI will become a cornerstone across our service areas as we continue to innovate and broaden our solutions portfolio.

    Through continued operational efficiency and cost discipline, we are strengthening our financial performance, and we remain cautiously optimistic for the remainder of 2025.

    I would like to express my sincere gratitude to all our employees for their dedication and agility during this period. Our collective efforts have laid a strong foundation for the months ahead. I also extend my thanks to our clients for their continued trust in our capabilities. Together, we are moving Digitalist Group toward a more profitable and sustainable future.

    CEO Magnus Leijonborg

    FUTURE PROSPECTS

    In 2025, it is expected that turnover and EBITDA will improve in comparison with 2024.

    At the time of the business review, the company expects its working capital to be sufficient to cover its requirements over the next 12 months based on the financing support provided by the main owner if needed. 

    EVENTS SINCE THE REVIEW PERIOD

    There have been no significant events since the end of the review period.

    The stock exchange releases and the AGM Notice are on the company’s website at www.digitalist.global/investors/releases.

    DIGITALIST GROUP OYJ

    Board of Directors

    Additional information:

    Digitalist Group Plc

    CEO Magnus Leijonborg, tel. +46 76 315 8422, magnus.leijonborg@digitalistgroup.com

    Chairman of the Board Esa Matikainen, tel. +358 40 506 0080, esa.matikainen@digitalistgroup.com

    Distribution:

    Nasdaq Helsinki Ltd

    Major media

    https://digitalist.global

    Attachment

    The MIL Network

  • MIL-OSI Global: AI policies in Africa: lessons from Ghana and Rwanda

    Source: The Conversation – Africa – By Thompson Gyedu Kwarkye, Postdoctoral Researcher, University College Dublin

    Artificial intelligence (AI) is increasing productivity and pushing the boundaries of what’s possible. It powers self-driving cars, social media feeds, fraud detection and medical diagnoses. Touted as a game changer, it is projected to add nearly US$15.7 trillion to the global economy by the end of the decade.

    Africa is positioned to use this technology in several sectors. In Ghana, Kenya and South Africa, AI-led digital tools in use include drones for farm management, X-ray screening for tuberculosis diagnosis, and real-time tracking systems for packages and shipments. All these are helping to fill gaps in accessibility, efficiency and decision-making.

    However, it also introduces risks. These include biased algorithms, resource and labour exploitation, and e-waste disposal. The lack of a robust regulatory framework in many parts of the continent increases these challenges, leaving vulnerable populations exposed to exploitation. Limited public awareness and infrastructure further complicate the continent’s ability to harness AI responsibly.

    What are African countries doing about it?
    To answer this, my research mapped out what Ghana and Rwanda had in place as AI policies and investigated how these policies were developed. I looked for shared principles and differences in approach to governance and implementation.

    The research shows that AI policy development is not a neutral or technical process but a profoundly political one. Power dynamics, institutional interests and competing visions of technological futures shape AI regulation.

    I conclude from my findings that AI’s potential to bring great change in Africa is undeniable. But its benefits are not automatic. Rwanda and Ghana show that effective policy-making requires balancing innovation with equity, global standards with local needs, and state oversight with public trust.

    The question is not whether Africa can harness AI, but how and on whose terms.

    How they did it

    Rwanda’s National AI Policy emerged from consultations with local and global actors. These included the Ministry of ICT and Innovation, the Rwandan Space Agency, and NGOs like the Future Society, and the GIZ FAIR Forward. The resulting policy framework is in line with Rwanda’s goals for digital transformation, economic diversification and social development. It includes international best practices such as ethical AI, data protection, and inclusive AI adoption.

    Ghana’s Ministry of Communication, Digital Technology and Innovations conducted multi-stakeholder workshops to develop a national strategy for digital transformation and innovation. Start-ups, academics, telecom companies and public-sector institutions came together and the result is Ghana’s National Artificial Intelligence Strategy 2023–2033.

    Both countries have set up or plan to set up Responsible AI offices. This aligns with global best practices for ethical AI. Rwanda focuses on local capacity building and data sovereignty. This reflects the country’s post-genocide emphasis on national control and social cohesion. Similarly, Ghana’s proposed office focuses on accountability, though its structure is still under legislative review.

    Ghana and Rwanda have adopted globally recognised ethical principles like privacy protection, bias mitigation and human rights safeguards. Rwanda’s policy reflects Unesco’s AI ethics recommendations and Ghana emphasises “trustworthy AI”.

    Both policies frame AI as a way to reach the UN’s Sustainable Development Goals. Rwanda’s policy targets applications in healthcare, agriculture, poverty reduction and rural service delivery. Similarly, Ghana’s strategy highlights the potential to advance economic growth, environmental sustainability and inclusive digital transformation.

    Key policy differences

    Rwanda’s policy ties data control to national security. This is rooted in its traumatic history of identity-based violence. Ghana, by contrast, frames AI as a tool for attracting foreign investment rather than a safeguard against state fragility.

    The policies also differ in how they manage foreign influence. Rwanda has a “defensive” stance towards global tech powers; Ghana’s is “accommodative”. Rwanda works with partners that allow it to follow its own policy. Ghana, on the other hand, embraces partnerships, viewing them as the start of innovation.

    While Rwanda’s approach is targeted and problem-solving, Ghana’s strategy is expansive, aiming for large-scale modernisation and private-sector growth. Through state-led efforts, Rwanda focuses on using AI to solve immediate challenges such as rural healthcare access and food security. In contrast, Ghana looks at using AI more widely – in finance, transport, education and governance – to become a regional tech hub.

    Constraints and solutions

    The effectiveness of these AI policies is held back by broader systemic challenges. The US and China dominate in setting global standards, so local priorities get sidelined. For example, while Rwanda and Ghana advocate for ethical AI, it’s hard for them to hold multinational corporations accountable for breaches.

    Energy shortages further complicate large-scale AI adoption. Training models require reliable electricity – a scarce resource in many parts of the continent.

    To address these gaps, I propose the following:

    Investments in digital infrastructure, education and local start-ups to reduce dependency on foreign tech giants.

    African countries must shape international AI governance forums. They must ensure policies reflect continental realities, not just western or Chinese ones. This will include using collective bargaining power through the African Union to bring Africa’s development needs to the fore. It could also help with digital sovereignty issues and equitable access to AI technologies.

    Finally, AI policies must embed African ethical principles. These should include communal rights and post-colonial sensitivities.

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

    ref. AI policies in Africa: lessons from Ghana and Rwanda – https://theconversation.com/ai-policies-in-africa-lessons-from-ghana-and-rwanda-253642

    MIL OSI – Global Reports

  • MIL-OSI USA: SPC Severe Thunderstorm Watch 171

    Source: US National Oceanic and Atmospheric Administration

    Note:  The expiration time in the watch graphic is amended if the watch is replaced, cancelled or extended.Note: Click for Watch Status Reports.
    SEL1

    URGENT – IMMEDIATE BROADCAST REQUESTED
    Severe Thunderstorm Watch Number 171
    NWS Storm Prediction Center Norman OK
    1055 PM CDT Thu Apr 24 2025

    The NWS Storm Prediction Center has issued a

    * Severe Thunderstorm Watch for portions of
    Western and Central Oklahoma
    Texas Panhandle

    * Effective this Thursday night and Friday morning from 1055 PM
    until 400 AM CDT.

    * Primary threats include…
    Scattered large hail and isolated very large hail events to 2
    inches in diameter possible
    Scattered damaging wind gusts to 70 mph possible
    A tornado or two possible

    SUMMARY…Clusters of strong/severe storms including a few
    supercells should continue to develop southeastward regionally late
    tonight, although overall storm intensity should gradually diminish
    overnight.

    The severe thunderstorm watch area is approximately along and 45
    statute miles north and south of a line from 25 miles south of
    Borger TX to 40 miles southeast of Enid OK. For a complete depiction
    of the watch see the associated watch outline update (WOUS64 KWNS
    WOU1).

    PRECAUTIONARY/PREPAREDNESS ACTIONS…

    REMEMBER…A Severe Thunderstorm Watch means conditions are
    favorable for severe thunderstorms in and close to the watch area.
    Persons in these areas should be on the lookout for threatening
    weather conditions and listen for later statements and possible
    warnings. Severe thunderstorms can and occasionally do produce
    tornadoes.

    &&

    OTHER WATCH INFORMATION…CONTINUE…WW 167…WW 169…WW 170…

    AVIATION…A few severe thunderstorms with hail surface and aloft to
    2 inches. Extreme turbulence and surface wind gusts to 60 knots. A
    few cumulonimbi with maximum tops to 500. Mean storm motion vector
    29025.

    …Guyer

    SEL1

    URGENT – IMMEDIATE BROADCAST REQUESTED
    Severe Thunderstorm Watch Number 171
    NWS Storm Prediction Center Norman OK
    1055 PM CDT Thu Apr 24 2025

    The NWS Storm Prediction Center has issued a

    * Severe Thunderstorm Watch for portions of
    Western and Central Oklahoma
    Texas Panhandle

    * Effective this Thursday night and Friday morning from 1055 PM
    until 400 AM CDT.

    * Primary threats include…
    Scattered large hail and isolated very large hail events to 2
    inches in diameter possible
    Scattered damaging wind gusts to 70 mph possible
    A tornado or two possible

    SUMMARY…Clusters of strong/severe storms including a few
    supercells should continue to develop southeastward regionally late
    tonight, although overall storm intensity should gradually diminish
    overnight.

    The severe thunderstorm watch area is approximately along and 45
    statute miles north and south of a line from 25 miles south of
    Borger TX to 40 miles southeast of Enid OK. For a complete depiction
    of the watch see the associated watch outline update (WOUS64 KWNS
    WOU1).

    PRECAUTIONARY/PREPAREDNESS ACTIONS…

    REMEMBER…A Severe Thunderstorm Watch means conditions are
    favorable for severe thunderstorms in and close to the watch area.
    Persons in these areas should be on the lookout for threatening
    weather conditions and listen for later statements and possible
    warnings. Severe thunderstorms can and occasionally do produce
    tornadoes.

    &&

    OTHER WATCH INFORMATION…CONTINUE…WW 167…WW 169…WW 170…

    AVIATION…A few severe thunderstorms with hail surface and aloft to
    2 inches. Extreme turbulence and surface wind gusts to 60 knots. A
    few cumulonimbi with maximum tops to 500. Mean storm motion vector
    29025.

    …Guyer

    Note: The Aviation Watch (SAW) product is an approximation to the watch area. The actual watch is depicted by the shaded areas.
    SAW1
    WW 171 SEVERE TSTM OK TX 250355Z – 250900Z
    AXIS..45 STATUTE MILES NORTH AND SOUTH OF LINE..
    25S BGD/BORGER TX/ – 40SE END/ENID OK/
    ..AVIATION COORDS.. 40NM N/S /12ENE AMA – 35SE END/
    HAIL SURFACE AND ALOFT..2 INCHES. WIND GUSTS..60 KNOTS.
    MAX TOPS TO 500. MEAN STORM MOTION VECTOR 29025.

    LAT…LON 35990140 36599741 35299741 34680140

    THIS IS AN APPROXIMATION TO THE WATCH AREA. FOR A
    COMPLETE DEPICTION OF THE WATCH SEE WOUS64 KWNS
    FOR WOU1.

    Watch 171 Status Report Message has not been issued yet.

    Note:  Click for Complete Product Text.Tornadoes

    Probability of 2 or more tornadoes

    Low (20%)

    Probability of 1 or more strong (EF2-EF5) tornadoes

    Low (5%)

    Wind

    Probability of 10 or more severe wind events

    Mod (40%)

    Probability of 1 or more wind events > 65 knots

    Low (10%)

    Hail

    Probability of 10 or more severe hail events

    Mod (40%)

    Probability of 1 or more hailstones > 2 inches

    Mod (30%)

    Combined Severe Hail/Wind

    Probability of 6 or more combined severe hail/wind events

    High (70%)

    For each watch, probabilities for particular events inside the watch (listed above in each table) are determined by the issuing forecaster. The “Low” category contains probability values ranging from less than 2% to 20% (EF2-EF5 tornadoes), less than 5% to 20% (all other probabilities), “Moderate” from 30% to 60%, and “High” from 70% to greater than 95%. High values are bolded and lighter in color to provide awareness of an increased threat for a particular event.

    MIL OSI USA News

  • MIL-OSI USA: US Department of Labor applauds President Trump’s executive order advancing artificial intelligence education for young Americans

    Source: US Department of Labor

    WASHINGTON – U.S. Secretary of Labor Lori Chavez-DeRemer and Deputy Secretary of Labor Keith Sonderling applauded President Trump’s latest Executive Order “Advancing Artificial Intelligence Education for American Youth.” 

    The directive, which establishes the White House Task Force on Artificial Intelligence Education, calls on the U.S. Department of Labor to protect and prepare the American workforce for challenges of the future, which remains at the forefront of the President’s AI agenda.

    “The President and I are in complete agreement that protecting and preparing our workforce must be a top priority in advancing his critical AI agenda. I applaud the President for keeping his promise to put American Workers First,” Secretary Chavez-DeRemer said. “As our nation continues to step into the future, I am committed to ensuring our workforce is ready. There’s no one I trust more to help me carry out this mission than my deputy, Keith, whose expertise in AI makes him a natural fit to spearhead this effort.”

    “Artificial intelligence is reshaping the job market, and it’s critical we equip our workers with the skills they need to lead in this new era. I applaud President Trump for taking swift action to support AI education and workforce development and appreciate the Secretary’s trust in me to help lead this effort to expand apprenticeships and promote AI literacy nationwide,” said Deputy Secretary Sonderling. 

    The President’s executive order puts American workers first by instructing the department to:

    • Leverage authorities and financial incentives to increase participation in AI-related apprenticeships.
    • Encourage states and grantees to use Workforce Innovation and Opportunity Act funding to develop AI skills and support work-based learning opportunities within occupations utilizing AI.
    • Collaborate with the director of the National Science Foundation to work with state and local workforce organizations and training providers to identify and promote high-quality AI skills education coursework and certifications across the country.
    • Work with the Secretary of Education and the NSF Director to create opportunities for high school students to take AI courses and certification programs.

    Learn more about the executive order, “Advancing Artificial Intelligence Education for American Youth.”

    MIL OSI USA News

  • MIL-OSI Banking: Press Briefing Transcript: Middle East and Central Asia Department, Spring Meetings 2025

    Source: International Monetary Fund

    April 24, 2025

    Speaker: Mr.Jihad Azour, Director of Middle East and Central Asia Department, IMF

    Moderator: Ms. Angham Al Shami, Communications Officer, IMF

    MS. AL SHAMI: Good morning. Thank you for joining us in this press briefing on the Regional Economic Outlook for the Middle East and Central Asia. My name is Angham Al Shami, from the Communications Department here at the IMF. 

    If you’re joining us online, we do have Arabic and French interpretations that you can access on the IMF Regional Economic Outlook webpage and the IMF Press Center as well.  And for those of you in the room, you also have equipment to access that. 

    Today I’m joined by Jihad Azour, the Director of the Middle East and Central Asia Department, who will give us an overview of the outlook of the region, and then we will open the floor for your questions. With that, over to you, Jihad.

    MR. AZOUR: Thank you very much, Angham. Good morning, everyone, and welcome to the IMF 2025 Spring Meetings. Before answering your questions, I will briefly outline the economic outlook for the Middle East and North Africa as well as the Caucasus and Central Asia.  Let me first start with a few words on the recent developments.

    The global economy stands at a delicate crossroads.  The global recovery of recent years faces new risks as governments reorder their policy priorities.  The recent escalation in trade tensions has already damaged global growth prospects while triggering intense financial volatility.  More broadly, the extraordinary increase in global uncertainty associated with trade policy and increased geopolitical fragmentation will continue to erode confidence for quite some time and represents a serious downside risk to global growth.

    For MENA and CCA economies, these developments are adding to existing regional source of uncertainty, including ongoing conflicts, pockets of political instability and climate vulnerability.  We continue to assess the impact of recently announced U.S. tariffs on MENA and CCA economies.  While the direct effects are expected to be modest, giving limited trade exposure and exemptions for energy products, the indirect effects could be more pronounced.  Slower growth will weaken external demand and remittances, while tighter financial conditions may challenge countries with elevated public debts.  Oil exporting economies could also see fiscal and external positions deteriorate due to the lower oil prices.  Some countries may benefit from trade diversion, but such gains could be short lived in a broader environment of trade contraction. 

    Let me now turn to the Middle East and North Africa.  Last year was particularly challenging for the region.  Conflict caused severe human and economic costs.  Regional growth in 2024 reached 1.8 percent, a downgrade revision of 0.2 percentage point from the October World Economic Outlook forecast.  Conflicts weigh on growth in some oil importing countries and extended OPEC+ voluntary production cuts continue to dampen activity in oil exporting economies.  For GCC countries, strong non-oil growth and diversification efforts were largely offset by oil production cuts. 

    Despite these challenges and high uncertainty, growth is projected to pick up in 2025 and 2026, assuming oil output rebounds, conflict related impacts stabilize, progress is made on structural reform and implementation.  However, expectations have been revised down compared to the October 2024 Regional Economic Outlook, reflecting weaker global growth and more modest effect of these drivers.  We now project growth at 2.6 percent in 2025 and 3.4 percent in 2026, a downward revision of 1.3 and 1 percentage points, respectively.  Inflation is projected to continue declining across MENA economies, remaining elevated only in few cases. 

    Let me now turn to the outlook for the Caucuses and Central Asia.  In contrast, economic activity in the CCA exceeded expectations in 2024, growing by 5.4 percent, driven by spillover effects from the war in Ukraine, which boosted domestic demand.  However, as these temporary effects normalize over the next few years, growth is expected to moderate due to weaker external demand, plateauing growth of hydrocarbon production, and reduced fiscal stimulus.  Despite the moderation in overall growth, inflation is expected to increase somewhat across the region and remain elevated in a few cases, reflecting still strong domestic demand. 

    Let me now turn to the risks to the outlook.  These projections are subject to extraordinary uncertainty and the risks to the baseline forecast remain tilted to the downside.  Four key risks stand out.  First, trade tension as a further escalation could dampen global demand, delay in oil production recovery, and tighten financial conditions.  Our analysis shows that persistence spikes in uncertainty triggered by global shocks are associated with large output losses both in MENA and CCA.  The second risk is geopolitical conflict.  The third one is climate shocks.  And the last one is the reduction in official development assistance.  This could further exacerbate food insecurity and humanitarian conditions in low-income and conflict-affected economies.  However, upside risks also exist.  The swift resolution of conflict and accelerated implementation of structural reforms could substantially improve regional growth prospects.  The implications of a potential peace agreement between Russia and Ukraine for the CCA region also remain uncertain. 

    Now the question is what are the policies that we recommend for countries and how they should prioritize them.  In the face of extraordinary uncertainty, MENA and CCA economies should respond along two key dimensions, manage short term instability, and use the opportunity to advance structural reforms for long-term growth.  The first priority is adapt to the new environment.  Countries must take steps to shield their economies from the impact of worst-case scenarios and prioritize safeguarding macroeconomic and financial stability.  The appropriate policy response will vary depending on each country’s initial conditions and vulnerability to risk. 

    Turning to more the long-term, countries should transform their economies.  Recent developments underscore the urgent need to accelerate the long-discussed structural reforms agenda across the region.  To reduce vulnerabilities to shocks and seize opportunities arising from the evolving global trade and financial landscape, it is essential to enhance governance, invest in human capital, advance digitalization, and foster a dynamic private sector.  Establishing strategic trade and investment corridors with other regions such as Sub-Saharan Africa and Asia, as well as within the region, including between GCC and Central Asia or GCC and North Africa, can help mitigate exposure to external uncertainty, enable greater risk sharing, and drive sustainable economic development. 

    We will delve into these policy priorities at the launch of our Regional Economic Outlook in Dubai next week and in Samarkand, in Uzbekistan, where on May 3 we are organizing jointly with the Uzbek government a GCC-CCA Economic Conference where Ministers of Finance and Governors of Central Banks from both regions, as well as representatives of IFIs and private sectors, will discuss deepening economic ties between these two regions.  We also invite you to join us tomorrow at 2:30 p.m. at the Atrium for a public panel discussion on the economic consequences of the high uncertainty in the MENA and CCA regions. 

    Before I open the floor to questions, I want to underscore the IMF’s deep commitment to supporting countries throughout the region with policy advice, technical assistance, and, in many cases, financial support.  Since early 2020, we have approved almost $50 billion in financing to countries across the MENA region, Pakistan, and the CCA, of which 14.8 have been approved since early 2024. 

    In closing, I want to highlight our engagement to post-conflict economies.  Strengthening economic fundamentals and rebuilding institutions will be essential to successful recovery.  The IMF, in coordination with the World Bank and regional partners, has established an informal coordination group to support recovery in conflict-affected states in the Middle East.  Our focus will be on capacity building, policy guidance, and financial assistance.  We are also working closely with authorities to help stabilize their economies, restore confidence, and lay foundations for sustainable growth. 

    Again, thank you very much for joining us this morning, and now I would like to welcome your questions.               

    MS. AL SHAMI: Thank you very much, Jihad, and now we will take your questions. And let’s start with the gentleman here in the first row, please.

    QUESTIONER: Thank you, Angham and Jihad.  I’m Amir Goumaa from Asharq Bloomberg.  IMF raised the gross forecasting for Egypt dispIte the regional downgrade.  Why is that?  And how can the MENA region turn the country trade disputes into opportunities? 

    MR. AZOUR: Excuse me?

    QUESTIONER: How can the MENA region turn the current trade disputes and tariffs into opportunities?  Like how can they make the best use of it? 

    MR. AZOUR: Thank you very much for your question.

    MS. AL SHAMI: Should we take more questions on Egypt? Perhaps should we take more questions on Egypt. We’ll start with this gentleman and then the gentleman in the back.  This one first. 

    QUESTIONER: Hello everyone.  My name is Ahmad Yaqub.  I’m the managing editor of Al Youm Al-Sabah Egyptian Newspaper.  I have two questions about Egypt.  The first one is about the expected exchange rate of the Egyptian pound against the U.S. dollar by the end of 2026, the next year, and the expected inflation rate and the economic growth rate of Egypt.  The second question is the next trench of the program, current program with the Egyptian authorities.  What is the timing of the next trench and the total amount of it?  Thank you so much. 

    MS. AL SHAMI: And then the gentleman here.

    QUESTIONER: Ramy Gabr from Al-Qahera News.  The global economic outlook carries good news.  Maybe for Egypt in terms of the economic growth in 2025.  How do you see that and what’s the facts and numbers led to this outlook?  Thank you. 

    MS. AL SHAMI: Over to you.

    MR. AZOUR: Thank you very much. Yes, please.

    QUESTIONER: I’m Lauren Holtmeier from S&P Global.  I wanted to ask about the fiscal break-even prices for oil production, specifically for the countries with high fiscal break-even prices like Saudi Arabia and Iraq.  And how will the lowered expectations for oil prices over the next couple of years affect their ability and their economic outlook?  And I recognize that the answer for those two countries might be very different. 

    MR. AZOUR: Thank you very much. I had three sets of questions. One on trade and the impact of the recent trade developments on the region and how those could be turned into an opportunity.  The second set of questions were on Egypt, and the third one was on the GCC and the oil market.  Let me start with the first one. 

    Countries of the region have limited trade dependence on the U.S., and therefore the recent trade and tariff decisions will have limited direct impact on those economies.  Yet it’s important also to highlight that there would be indirect impact.  And also those indirect impact may take different channels.  One impact is the impact that this could have on financial stability and capital flows.  We saw widening of spreads over the last few years, which is an issue that could affect the capacity of emerging economies and middle-income countries who have high levels of debt.  The second potential impact is impact on oil market.  We saw some softening in the oil price, as well as the forwards of oil price are showing a certain extension of those softening over the year.  And the third type of effect is the second-round impact due to trade diversion. 

    I will maybe go into more details about what are the policies that we recommend for countries to address those challenges.  Few countries have more exposure to the U.S. trade like Pakistan or Jordan, and those are specific cases.  I can address those.  Opportunities, of course, in any change there are opportunities, and over the last few years we saw successive shocks and transformation on the geopolitical front and the geoeconomic front, and those have affected the region.  The region stands at the crossroads between East and West, and therefore trade routes, connectivity, as well as also opportunities go through this region.  This would require, as I mentioned in my opening remarks, for countries in the region to seek new opportunities in terms of strengthening their economic relationships and trade ties with regions close to them, as well as also within countries in the region, which will call for new way of increasing connectivity and cooperation in the region. 

    The second set of questions is on Egypt.  Over the last year, growth in Egypt has improved, and we expect growth for the fiscal year 2025 to reach 3.8 percent.  For comparison, in 2024 it was 2.4 percent, and we expect that the growth will keep improving in 2026 and reach 4.3 percent.  Also, inflation went down from 33 percent on average for fiscal year 2024 to 19.7 percent in 2025, and we expect it to reach 12 percent in 2026, despite the various shocks.  Those positive developments reflect the implementation of the reform program that was supported by the IMF and was augmented back in March last year in order also to help Egypt address some of the external shocks, in particular the decline in revenues from the Suez Canal. 

    As you remember, the program is based on four pillars.  One, macroeconomic stability by addressing inflation that constitutes the main issue for economic stability through tightening the monetary policy.  The second is to address the debt issue by improving the primary surplus and also through an active debt management strategy and strengthening debt management organization to reduce gradually the debt and the weight of the debt through the debt service on the economy.  The third important pillar is to preserve the economy from external shocks, and this is the role of the flexibility in the exchange rate.  Flexibility in the exchange rate in a time of high level of uncertainty plays an important way to protect the Egyptian economy from external shocks, and its flexibility has proven to be beneficial to the stability of the Egyptian economy.  The fourth pillar is growing the economy and give a bigger weight to the private sector, and we encourage the authorities to strengthen and accelerate the reinvestment strategy that would allow more investment to come to the Egyptian economy, would give more space to the private sector, and will help the Egyptian economy and the Egyptian people get better opportunities in a time where those international changes would require an acceleration of economic transformation.  The review has been completed in March, and as you know, we had also another facility that was provided to Egypt to help Egypt deal with climate issues, and our engagement with the authorities remain very active.  Shall I move to GCC? 

    MS. AL SHAMI: Yes.

    MR. AZOUR: The next trench will be with the next review. On the GCC, well, of course the direct impact of the trade shock on the region has been limited except that with the prospect of the decline in oil price, it comes at a time where we see a resumption of increase of oil production with the implementation of what has been agreed, though at a slower pace, of the December decision of the OPEC+ agreement.

    As you know, countries of the GCC have different fundamentals and different level of buffers, and therefore there is no one break-even point for all countries.  Our estimates are showing, though, that a decline in oil price of $10 would weaken the fiscal situation by somewhat between 2.3 to 2.7 percent of GDP, and it also, it has similar impact on the external account between 2.5 to 2.7 percent of GDP. 

    I would like to highlight two additional points that some countries have used the opportunity of their diversification strategy to both reduce their dependence on oil as a source of income, but also to diversify fiscally and reduce the impact of oil revenues, which we encourage other countries to follow suit. 

    MS. AL SHAMI: Thank you, Jihad. So we’ll take another round of questions from the room, and then we will turn to online. The lady in the first row, please. 

    QUESTIONER: Dr. Jihad, thank you for taking my question.  Nour Amache from Asharq Bloomberg.  I wanted to ask about Lebanon and Syria and to follow up on what my colleagues here asked about Egypt.  They were asking about the next review, if it’s in June, and the next tranche in June, if we can elaborate on that.  Now, regarding Lebanon, today the parliament passed the law of lifting bank secrecy.  Will this make or will this make the program with the IMF faster?  Will this increase the prospects of a program with Lebanon anytime soon, especially since I know the Lebanese authorities represented by the Finance Minister, the Economy Minister, and the Central Bank Governor are all here in Washington, and a lot of meetings have been undergoing?  That’s regarding Lebanon.  And regarding Syria, also a big Syrian delegation is here.  What has been reached so far with the Syrian counterparts?  Thank you. 

    MS. AL SHAMI: Thank you. One more question. Maybe we’ll go to the gentleman in the front here. 

    QUESTIONER: Thank you.  Mohammad Al-Lubani from Jordan Al-Mamlaka TV.  I’d like to ask in Arabic.  In light of our dependence on American exports, [ESQUAH] said that 25 percent of the exports go to the United States.  How would the tariffs affect Jordan, and are there any estimates of these losses by the Fund?  And what are the recommendations of the Fund in order to face these challenges? 

    MR. AZOUR: The discussions are, you know, continuing, and the engagement with the authorities is taking place during the Spring Meetings. As I mentioned earlier, we look forward to the next review to see an acceleration of the divestment strategy that is one of the key priorities because of its critical impact on sustaining growth in Egypt, providing opportunities to the private sector, and also helping in the effort that Egypt is pursuing in reducing the debt. In the context of high interest rate, it’s very important to address debt service issue, and this would be accelerated by reducing the debt.  Therefore, we look forward to see progress on the authorities’ plan in terms of divestment.

    On Lebanon, the Fund has been supportive of Lebanon, and a staff-level agreement has been reached in 2022.  Lebanon staff, Lebanon team, is and remained actively engaged with the authorities, providing technical assistance.  And recently, we had two staff visits to Lebanon and the authorities have engaged with our team in order to reactivate a potential program.  They have expressed their interest for that.  The Lebanese economic and financial situation has been made

    more challenging with the recent implications of the war and the massive destruction that in addition to the need to address the financial and economic situation, Lebanon is also facing the need to deal with the reconstruction. 

    The pillars of the program will remain valid as they were negotiated.  Macroeconomic stability, based on addressing the legacy of the financial sector.  The legacy of debt, address the debt issue.  Second pillar is to deal with the macroeconomic stability through fiscal consolidation.  Third pillar is to strengthen governance by reforming SOEs and also increasing and improving the confidence factor.  And third is to address social issues, especially now with issues related to the reconstructions.  Discussions are taking place and staff is on active dialogue with the Lebanese authorities. 

    We are in discussion and therefore I think the discussions that we are having during the Spring Meetings are giving the opportunity for us to understand what are the reform priorities of the Lebanese government.  As you know, staff had a couple of visits in the last few weeks, and we will keep our active engagement with the Lebanese authorities.

    On Syria.  Of course, Syria has been absent for the last 15 years due to the war, and their engagement with the institution has been fairly limited since 2011.  The last Article IV consultation with Syria took place in 2009.  The international community and the regional community has been actively engaged in order to see how we could help Syria recover from a long period of war. 

    We had a preparatory meeting preparatory meeting in AlUla back in February where regional institutions and the international community have agreed to have another follow-up coordination meeting that took place last Tuesday where representatives from international institutions, bilaterals, have convened in order to assess the needs of Syria and also to develop a framework of coordination.  The Fund is engaged to support the international community in its engagement with Syria.  We have already started our assessment of the macroeconomic situation, the institutional capacity, and we look forward to continue our engagement with the Syrian authorities. 

    MS. AL SHAMI: Then you have one more question on Jordan.

    MR. AZOUR: Yes, Jordan. In Arabic?  Okay.  Jordan is one of the countries that have been affected by the tariffs, but this is still limited because of the kind of exports or the relationship between Jordan and the United States.  And Jordan managed to overcome, in the recent years, to overcome several shocks, including shocks related to the variability and volatility and the effect of the Gaza issues on the economy of Jordan.  And the latest reviews emphasized the need for Jordan to keep stability and also, despite the external shocks, to take the needed measures in order to improve the macroeconomic situation and to reinforce the economy.  And there has been discussions about supporting Jordan through a new mechanism, the Resilience and Sustainability Facility, in order to help Jordan in the measures that would help it improve adaptation with the climate change and other shocks and other pandemics.  There is actually progress in this regard.  And there will be a review next month by the Executive Board of the Fund about Jordan. 

    MS. AL SHAMI: We’ll turn to Dania, who’s on Webex online. Dania, please go ahead. 

    QUESTIONER: Hello, can you hear me? 

    MS. AL SHAMI: Yes, you can hear you.

    QUESTIONER: Hi.  Hello Dr. Jihad, I just have a follow-up question on the break-even oil prices for the Gulf.  In the October report, countries like Saudi Arabia had a very high break-even price of around 90.  I think it was the second biggest highest in the GCC after Bahrain.  I just wanted to see, this figure is likely to increase given the high expenditures, the lower oil prices.  How will the lower oil prices — you mentioned about the impact on GDP, but the prices, I think, since the beginning of the year have dropped by more than $10.00.  So, the impact has it been considered in the Regional Economic Report?  And especially because I don’t know the report, did it include the impact of the tariffs and the impact of the increase in OPEC production from May, which is accelerated?  And just one clarification, with regards to Saudi break-even, some analysts include the expenditure of the Public Investment Fund.  Is that part of the IMF estimates for the break-even?  What’s included in the break-even?  Thank you very much. 

    MS. AL SHAMI: Thank you. Any additional questions on GCC? Okay, let’s take the gentleman in the middle. 

    QUESTIONER: Hello Mr. Azour, Madame Al Shami, thank you for the opportunity.  Philippe Hage Boutros from L’Orient-Le Jour, Lebanon.  How does the IMF assess the potential impact of declining oil revenues stemming from a possible drop in prices amid the tariff crisis on the capacity and willingness of the Gulf countries to fund international aid, particularly for countries like Lebanon and Syria that urgently need reconstruction financing?  Does it anticipate a significant or relatively limited effect?  Thank you. 

    MS. AL SHAMI: Thank you. And we had one more question on Saudi that we received online. In light of the global trade repercussions, what is the effect on the Saudi market, especially on inflation and growth?  This question comes from Mohammed Al Sulami from Al Akhbariyah in Saudi Arabia. 

    MR. AZOUR: Let me start with Dania’s question. Dania, let me start by saying that over the last few years from a fiscal perspective, Saudi has made a significant improvement through various reforms in order to diversify revenues outside oil and also reduce certain expenditures, including on the subsidy side. And this effort to diversify revenues has led to an increase of non-oil revenues in the GDP for Saudi.  Of course, the last couple of years have been beneficial in terms of providing Saudi and other GCC countries with surplus in the fiscal as well as also in the current account, which have led to increase in buffers.  Of course, still the oil sector represent an important source of revenue and it’s still also an important source of foreign currencies. 

    Coming to the fiscal strategy, Saudi has established a medium-term fiscal framework that anchors policies and also help them deal with the volatility in oil price and become less pro cyclicals.  Of course, the increase in oil price, sorry, the decline in oil price will have impact on the fiscal and will lead to a potential additional drop in fiscal situation. 

    As I mentioned earlier, a decline of $10.00 per barrel or a decline of $1 million of production will have an impact on the fiscal between 2 to 3 percent.  The decline in oil price is accompanied with a recovery in oil production and Saudi was one of the largest, I would say, contributor to the voluntary drop in oil export. 

    When it comes to the link between fiscal and the investment strategy, the investment strategy has been also put in the medium-term framework in the context of the Vision 2030 and regularly there are updates, recalibration and also phasing, based on the capacity to implement and the priorities.

    In our projections, although developments were taking place almost at the time when we were releasing our outlook, we took into consideration the new assumptions on the oil price for this year as well as also on the growth projections. 

    The second question related to Saudi.  The impact of the latest developments on the Saudi economy.  Undoubtedly, the trade relations regarding the non-oil sector is limited with the United States and therefore the impact will also be limited on trade related to tariffs, especially as oil and gas are exempt from the increase in tariffs.  But there will be an indirect impact, as we’ve said.  Saudi Arabia also has a dollarized economy, whether on the side of exports or imports, and therefore the impact will be limited. 

    On the other hand, the reduction or the depreciation of the dollar will affect services, especially tourism.  And this is a sector that Saudi Arabia is trying to develop by establishing new expansion for tourism in Saudi Arabia.

    The other related question on support to the reconstruction in the region.  Let me first say two things.  One, ODA has declined over the last few years, and more recently with the decisions to stop some of the international assistance by USAID and others.  This will have an important impact, especially on countries in fragility who depend heavily on aid.  Countries like Somalia, Sudan, countries like Yemen.  And this represents a risk not only on the fiscal side, but also on the humanitarian side on food security.  This is the first point. 

    The second point is the region is, we’re talking here about the Levant, is going through an important prospect of post-conflict recovery.  Lebanon, Syria, Palestine, and hopefully, Yemen, and Sudan.  This would require strong international and financial assistance.  Of course, this also would require to accelerate certain number of reforms that will allow the private sector to provide financing.  Those countries have strong diasporas, and the recovery could also be co-led by international assistance, also by private sector support.  And some of the reforms, be it in Lebanon or in Syria, are very important to regain confidence and will allow private sector to play its key role in recovering those economies. 

    The region has been very supportive.  And when we look at the official assistance and the interest that is being shown by several countries in the region, be it in the recent meeting that took place in Saudi Arabia, in Al Ula, where ministers of finance from the GCC and regional institutions convened in order to explore opportunities to provide more assistance to those countries. 

    Again, I think it’s very important also to highlight that assistance has to accompany reform programs that will lay the ground to strong institutions will provide confidence for both citizens and also international, private and public community, in order to accelerate the recovery. 

    MS. AL SHAMI: Thank you, Jihad. We’ll take one more round of questions.  The lady on the second row here, please. 

    QUESTIONER:  Hello, I’m Mariam Ali from Dawn News Pakistan.  My question is how will the global tariff war uniquely impact Pakistan?  Any need of buffers in place to mitigate risks to the country?  Thank you. 

    MS. AL SHAMI: Thank you. Let’s take maybe one more question. The gentleman here sitting in the front. 

    QUESTIONER: Thank you, , Director Azour.  My question is on Yemen.  Igor Naimushin, RIA News Agency, D.C. Bureau.  So, last week U.S. struck Ras Isa fuel part in Yemen.  I would like to ask you to outline what repercussions this strike will have on energy security and economic situation in Yemen and broadly in region?  And if you could, provide any details how the IMF — what is the IMF view on longer-term risks for the region as U.S. operation on Yemen continues to unfold?  Thank you. 

    MS. AL SHAMI: Thank you. We’ll take one more question from the gentleman here in the –.

    QUESTIONER: Hi, my name is Magnus Sherman.  I wanted to return to Lebanon.  The new Prime Minister has pledged to not touch the hard currency deposits.  Does the IMF support that position? 

    MS. AL SHAMI: Thank you. And we have an online question from Camille Faris Abu Rafael. How can low- and middle-income countries in MENA balance urgent social needs with long-term fiscal sustainability amid rising debt and global uncertainty and persistently high interest rates?  We’ll take these questions, and we’ll take another round.  Thank you. 

    MR. AZOUR: On Pakistan. Pakistan made significant progress in restoring macroeconomic stability over the last 18 months and the numbers are, for Pakistan, are showing improvement both in terms of growth as well as also in inflation that dropped from 12.6 percent last year in 2024 fiscal year to 6.5 percent this year, expected to stay at this level for next year.  Debt is also stabilizing in the case of Pakistan, and recently Pakistan has been upgraded by rating agencies. 

    Of course, trade tensions will affect relatively Pakistan maybe more than the average in the region.  But I would say the impact on Pakistan directly can be offset by other measures that would allow the Pakistani economy to reposition itself in a world that is in the midst of one of the largest transformation in terms of trade, economic opportunities, and to reposition itself in order to address any risks, but also to potentially benefit from change in the trade routes. 

    The question on Yemen the situation on Yemen is extremely preoccupying at the humanitarian level, both in terms of food security as well as also in terms of human suffering.  And this situation has been inflicting heavy toll on the Yemeni people for a long period of time.  Of course, broadly speaking, instability has been one of the main issues that the region is dealing with.  Instability is one of the key sources of uncertainty for the region.  Addressing this instability is key in providing security for people to improve their living conditions, providing stability for the trade routes, and also provide opportunities for people to rebuild and reconstruct.  The Fund is engaged to (A) keep a very strong contacts with Yemen, provide technical assistance at a time where we cannot provide because of the security situation, financial assistance.  Therefore, we are actively supporting through technical assistance.  And we are also in regular engagement with the authorities. 

    Our next plan is to reengage through Article IV in order to assess the economic situation in Yemen, help the internationally recognized government assess the overall debt situation and the debt liabilities in order, later on, to help Yemen deal with the debt situation, and provide right assessment for the donor community to provide assistance. 

    Political stabilization security is very important to preserve human and social conditions, and the Fund stands ready to help Yemen as well as also other countries facing fragility and conflicts in the region.  And this is something that we are increasing our resources to provide support to those countries. 

    Lebanon.  Lebanon problems are complex in terms of how to address the overall financial challenge.  The solution has to deal through a comprehensive approach with all the financial issues that Lebanon is facing.  A piecemeal approach is not what Lebanon needs today.  A reform package that restores confidence, addresses the legacy of the past, provides opportunities for the economy to recover, by also promoting the capacity of the financial system to finance the recovery, mobilize international assistance to help Lebanon dealing with the reconstruction needs, and also support the reforms are priorities that our team is currently discussing with the Lebanese authorities. 

    The question related to balancing short-term and medium-term.  I think it’s a very important question.  We live currently in a world of high uncertainty and in our outlook this spring we have — and I would encourage you to read it,  it’s very interesting piece — we have tried to assess the impact of uncertainty on the region and the uncertainty is of multiple layers.  A global uncertainty, regional, geopolitical and conflict situation, but also internal or local uncertainties.  Those are important issues for countries to address. 

    In very brief, countries need to in the short term to preserve stability and that would require to increase their buffers.  And for those who have limited buffers to accelerate fiscal consolidations to reduce the risk, address some of their financing issues, especially countries who have high level of debt and for those who have buffers, preserve those and use them when they need.  But I think what is really important, especially given the lasting negative impact of uncertainties on countries, is to address the medium-term issues.  And addressing the medium-term issues will help unlock growth, accelerating structural reforms, improving economic conditions, provide stronger social protection framework by moving from untargeted subsidies to something that is more meaningful in terms of social support would be extremely beneficial for countries in the region. 

    MS. AL SHAMI: Thank you very much, Jihad and I’m afraid we have run out of time. Thank you all for participating with us today and as always, we will be posting the transcript online.  But just a reminder that we will be launching our report next week on May 1 so stay tuned for that.  And as Jihad mentioned, please join us tomorrow at 2:30 for the seminar on how countries can navigate uncertainties.  Jihad, any last words? 

    MR. AZOUR: Only to say thank you. And thanks to our friends here, the journalists. We look forward to provide you with more details in Dubai next week with all the details, as well as also country-specific information on our Regional Economic Outlook.  And two days after that, in Samarkand, in Uzbekistan, on the outlook for Caucasus and Central Asia.  Thank you very much. 

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Angham Al Shami

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

    MIL OSI Global Banks

  • MIL-OSI Russia: Press Briefing Transcript: Middle East and Central Asia Department, Spring Meetings 2025

    Source: IMF – News in Russian

    April 24, 2025

    Speaker: Mr.Jihad Azour, Director of Middle East and Central Asia Department, IMF

    Moderator: Ms. Angham Al Shami, Communications Officer, IMF

    MS. AL SHAMI: Good morning. Thank you for joining us in this press briefing on the Regional Economic Outlook for the Middle East and Central Asia. My name is Angham Al Shami, from the Communications Department here at the IMF. 

    If you’re joining us online, we do have Arabic and French interpretations that you can access on the IMF Regional Economic Outlook webpage and the IMF Press Center as well.  And for those of you in the room, you also have equipment to access that. 

    Today I’m joined by Jihad Azour, the Director of the Middle East and Central Asia Department, who will give us an overview of the outlook of the region, and then we will open the floor for your questions. With that, over to you, Jihad.

    MR. AZOUR: Thank you very much, Angham. Good morning, everyone, and welcome to the IMF 2025 Spring Meetings. Before answering your questions, I will briefly outline the economic outlook for the Middle East and North Africa as well as the Caucasus and Central Asia.  Let me first start with a few words on the recent developments.

    The global economy stands at a delicate crossroads.  The global recovery of recent years faces new risks as governments reorder their policy priorities.  The recent escalation in trade tensions has already damaged global growth prospects while triggering intense financial volatility.  More broadly, the extraordinary increase in global uncertainty associated with trade policy and increased geopolitical fragmentation will continue to erode confidence for quite some time and represents a serious downside risk to global growth.

    For MENA and CCA economies, these developments are adding to existing regional source of uncertainty, including ongoing conflicts, pockets of political instability and climate vulnerability.  We continue to assess the impact of recently announced U.S. tariffs on MENA and CCA economies.  While the direct effects are expected to be modest, giving limited trade exposure and exemptions for energy products, the indirect effects could be more pronounced.  Slower growth will weaken external demand and remittances, while tighter financial conditions may challenge countries with elevated public debts.  Oil exporting economies could also see fiscal and external positions deteriorate due to the lower oil prices.  Some countries may benefit from trade diversion, but such gains could be short lived in a broader environment of trade contraction. 

    Let me now turn to the Middle East and North Africa.  Last year was particularly challenging for the region.  Conflict caused severe human and economic costs.  Regional growth in 2024 reached 1.8 percent, a downgrade revision of 0.2 percentage point from the October World Economic Outlook forecast.  Conflicts weigh on growth in some oil importing countries and extended OPEC+ voluntary production cuts continue to dampen activity in oil exporting economies.  For GCC countries, strong non-oil growth and diversification efforts were largely offset by oil production cuts. 

    Despite these challenges and high uncertainty, growth is projected to pick up in 2025 and 2026, assuming oil output rebounds, conflict related impacts stabilize, progress is made on structural reform and implementation.  However, expectations have been revised down compared to the October 2024 Regional Economic Outlook, reflecting weaker global growth and more modest effect of these drivers.  We now project growth at 2.6 percent in 2025 and 3.4 percent in 2026, a downward revision of 1.3 and 1 percentage points, respectively.  Inflation is projected to continue declining across MENA economies, remaining elevated only in few cases. 

    Let me now turn to the outlook for the Caucuses and Central Asia.  In contrast, economic activity in the CCA exceeded expectations in 2024, growing by 5.4 percent, driven by spillover effects from the war in Ukraine, which boosted domestic demand.  However, as these temporary effects normalize over the next few years, growth is expected to moderate due to weaker external demand, plateauing growth of hydrocarbon production, and reduced fiscal stimulus.  Despite the moderation in overall growth, inflation is expected to increase somewhat across the region and remain elevated in a few cases, reflecting still strong domestic demand. 

    Let me now turn to the risks to the outlook.  These projections are subject to extraordinary uncertainty and the risks to the baseline forecast remain tilted to the downside.  Four key risks stand out.  First, trade tension as a further escalation could dampen global demand, delay in oil production recovery, and tighten financial conditions.  Our analysis shows that persistence spikes in uncertainty triggered by global shocks are associated with large output losses both in MENA and CCA.  The second risk is geopolitical conflict.  The third one is climate shocks.  And the last one is the reduction in official development assistance.  This could further exacerbate food insecurity and humanitarian conditions in low-income and conflict-affected economies.  However, upside risks also exist.  The swift resolution of conflict and accelerated implementation of structural reforms could substantially improve regional growth prospects.  The implications of a potential peace agreement between Russia and Ukraine for the CCA region also remain uncertain. 

    Now the question is what are the policies that we recommend for countries and how they should prioritize them.  In the face of extraordinary uncertainty, MENA and CCA economies should respond along two key dimensions, manage short term instability, and use the opportunity to advance structural reforms for long-term growth.  The first priority is adapt to the new environment.  Countries must take steps to shield their economies from the impact of worst-case scenarios and prioritize safeguarding macroeconomic and financial stability.  The appropriate policy response will vary depending on each country’s initial conditions and vulnerability to risk. 

    Turning to more the long-term, countries should transform their economies.  Recent developments underscore the urgent need to accelerate the long-discussed structural reforms agenda across the region.  To reduce vulnerabilities to shocks and seize opportunities arising from the evolving global trade and financial landscape, it is essential to enhance governance, invest in human capital, advance digitalization, and foster a dynamic private sector.  Establishing strategic trade and investment corridors with other regions such as Sub-Saharan Africa and Asia, as well as within the region, including between GCC and Central Asia or GCC and North Africa, can help mitigate exposure to external uncertainty, enable greater risk sharing, and drive sustainable economic development. 

    We will delve into these policy priorities at the launch of our Regional Economic Outlook in Dubai next week and in Samarkand, in Uzbekistan, where on May 3 we are organizing jointly with the Uzbek government a GCC-CCA Economic Conference where Ministers of Finance and Governors of Central Banks from both regions, as well as representatives of IFIs and private sectors, will discuss deepening economic ties between these two regions.  We also invite you to join us tomorrow at 2:30 p.m. at the Atrium for a public panel discussion on the economic consequences of the high uncertainty in the MENA and CCA regions. 

    Before I open the floor to questions, I want to underscore the IMF’s deep commitment to supporting countries throughout the region with policy advice, technical assistance, and, in many cases, financial support.  Since early 2020, we have approved almost $50 billion in financing to countries across the MENA region, Pakistan, and the CCA, of which 14.8 have been approved since early 2024. 

    In closing, I want to highlight our engagement to post-conflict economies.  Strengthening economic fundamentals and rebuilding institutions will be essential to successful recovery.  The IMF, in coordination with the World Bank and regional partners, has established an informal coordination group to support recovery in conflict-affected states in the Middle East.  Our focus will be on capacity building, policy guidance, and financial assistance.  We are also working closely with authorities to help stabilize their economies, restore confidence, and lay foundations for sustainable growth. 

    Again, thank you very much for joining us this morning, and now I would like to welcome your questions.               

    MS. AL SHAMI: Thank you very much, Jihad, and now we will take your questions. And let’s start with the gentleman here in the first row, please.

    QUESTIONER: Thank you, Angham and Jihad.  I’m Amir Goumaa from Asharq Bloomberg.  IMF raised the gross forecasting for Egypt dispIte the regional downgrade.  Why is that?  And how can the MENA region turn the country trade disputes into opportunities? 

    MR. AZOUR: Excuse me?

    QUESTIONER: How can the MENA region turn the current trade disputes and tariffs into opportunities?  Like how can they make the best use of it? 

    MR. AZOUR: Thank you very much for your question.

    MS. AL SHAMI: Should we take more questions on Egypt? Perhaps should we take more questions on Egypt. We’ll start with this gentleman and then the gentleman in the back.  This one first. 

    QUESTIONER: Hello everyone.  My name is Ahmad Yaqub.  I’m the managing editor of Al Youm Al-Sabah Egyptian Newspaper.  I have two questions about Egypt.  The first one is about the expected exchange rate of the Egyptian pound against the U.S. dollar by the end of 2026, the next year, and the expected inflation rate and the economic growth rate of Egypt.  The second question is the next trench of the program, current program with the Egyptian authorities.  What is the timing of the next trench and the total amount of it?  Thank you so much. 

    MS. AL SHAMI: And then the gentleman here.

    QUESTIONER: Ramy Gabr from Al-Qahera News.  The global economic outlook carries good news.  Maybe for Egypt in terms of the economic growth in 2025.  How do you see that and what’s the facts and numbers led to this outlook?  Thank you. 

    MS. AL SHAMI: Over to you.

    MR. AZOUR: Thank you very much. Yes, please.

    QUESTIONER: I’m Lauren Holtmeier from S&P Global.  I wanted to ask about the fiscal break-even prices for oil production, specifically for the countries with high fiscal break-even prices like Saudi Arabia and Iraq.  And how will the lowered expectations for oil prices over the next couple of years affect their ability and their economic outlook?  And I recognize that the answer for those two countries might be very different. 

    MR. AZOUR: Thank you very much. I had three sets of questions. One on trade and the impact of the recent trade developments on the region and how those could be turned into an opportunity.  The second set of questions were on Egypt, and the third one was on the GCC and the oil market.  Let me start with the first one. 

    Countries of the region have limited trade dependence on the U.S., and therefore the recent trade and tariff decisions will have limited direct impact on those economies.  Yet it’s important also to highlight that there would be indirect impact.  And also those indirect impact may take different channels.  One impact is the impact that this could have on financial stability and capital flows.  We saw widening of spreads over the last few years, which is an issue that could affect the capacity of emerging economies and middle-income countries who have high levels of debt.  The second potential impact is impact on oil market.  We saw some softening in the oil price, as well as the forwards of oil price are showing a certain extension of those softening over the year.  And the third type of effect is the second-round impact due to trade diversion. 

    I will maybe go into more details about what are the policies that we recommend for countries to address those challenges.  Few countries have more exposure to the U.S. trade like Pakistan or Jordan, and those are specific cases.  I can address those.  Opportunities, of course, in any change there are opportunities, and over the last few years we saw successive shocks and transformation on the geopolitical front and the geoeconomic front, and those have affected the region.  The region stands at the crossroads between East and West, and therefore trade routes, connectivity, as well as also opportunities go through this region.  This would require, as I mentioned in my opening remarks, for countries in the region to seek new opportunities in terms of strengthening their economic relationships and trade ties with regions close to them, as well as also within countries in the region, which will call for new way of increasing connectivity and cooperation in the region. 

    The second set of questions is on Egypt.  Over the last year, growth in Egypt has improved, and we expect growth for the fiscal year 2025 to reach 3.8 percent.  For comparison, in 2024 it was 2.4 percent, and we expect that the growth will keep improving in 2026 and reach 4.3 percent.  Also, inflation went down from 33 percent on average for fiscal year 2024 to 19.7 percent in 2025, and we expect it to reach 12 percent in 2026, despite the various shocks.  Those positive developments reflect the implementation of the reform program that was supported by the IMF and was augmented back in March last year in order also to help Egypt address some of the external shocks, in particular the decline in revenues from the Suez Canal. 

    As you remember, the program is based on four pillars.  One, macroeconomic stability by addressing inflation that constitutes the main issue for economic stability through tightening the monetary policy.  The second is to address the debt issue by improving the primary surplus and also through an active debt management strategy and strengthening debt management organization to reduce gradually the debt and the weight of the debt through the debt service on the economy.  The third important pillar is to preserve the economy from external shocks, and this is the role of the flexibility in the exchange rate.  Flexibility in the exchange rate in a time of high level of uncertainty plays an important way to protect the Egyptian economy from external shocks, and its flexibility has proven to be beneficial to the stability of the Egyptian economy.  The fourth pillar is growing the economy and give a bigger weight to the private sector, and we encourage the authorities to strengthen and accelerate the reinvestment strategy that would allow more investment to come to the Egyptian economy, would give more space to the private sector, and will help the Egyptian economy and the Egyptian people get better opportunities in a time where those international changes would require an acceleration of economic transformation.  The review has been completed in March, and as you know, we had also another facility that was provided to Egypt to help Egypt deal with climate issues, and our engagement with the authorities remain very active.  Shall I move to GCC? 

    MS. AL SHAMI: Yes.

    MR. AZOUR: The next trench will be with the next review. On the GCC, well, of course the direct impact of the trade shock on the region has been limited except that with the prospect of the decline in oil price, it comes at a time where we see a resumption of increase of oil production with the implementation of what has been agreed, though at a slower pace, of the December decision of the OPEC+ agreement.

    As you know, countries of the GCC have different fundamentals and different level of buffers, and therefore there is no one break-even point for all countries.  Our estimates are showing, though, that a decline in oil price of $10 would weaken the fiscal situation by somewhat between 2.3 to 2.7 percent of GDP, and it also, it has similar impact on the external account between 2.5 to 2.7 percent of GDP. 

    I would like to highlight two additional points that some countries have used the opportunity of their diversification strategy to both reduce their dependence on oil as a source of income, but also to diversify fiscally and reduce the impact of oil revenues, which we encourage other countries to follow suit. 

    MS. AL SHAMI: Thank you, Jihad. So we’ll take another round of questions from the room, and then we will turn to online. The lady in the first row, please. 

    QUESTIONER: Dr. Jihad, thank you for taking my question.  Nour Amache from Asharq Bloomberg.  I wanted to ask about Lebanon and Syria and to follow up on what my colleagues here asked about Egypt.  They were asking about the next review, if it’s in June, and the next tranche in June, if we can elaborate on that.  Now, regarding Lebanon, today the parliament passed the law of lifting bank secrecy.  Will this make or will this make the program with the IMF faster?  Will this increase the prospects of a program with Lebanon anytime soon, especially since I know the Lebanese authorities represented by the Finance Minister, the Economy Minister, and the Central Bank Governor are all here in Washington, and a lot of meetings have been undergoing?  That’s regarding Lebanon.  And regarding Syria, also a big Syrian delegation is here.  What has been reached so far with the Syrian counterparts?  Thank you. 

    MS. AL SHAMI: Thank you. One more question. Maybe we’ll go to the gentleman in the front here. 

    QUESTIONER: Thank you.  Mohammad Al-Lubani from Jordan Al-Mamlaka TV.  I’d like to ask in Arabic.  In light of our dependence on American exports, [ESQUAH] said that 25 percent of the exports go to the United States.  How would the tariffs affect Jordan, and are there any estimates of these losses by the Fund?  And what are the recommendations of the Fund in order to face these challenges? 

    MR. AZOUR: The discussions are, you know, continuing, and the engagement with the authorities is taking place during the Spring Meetings. As I mentioned earlier, we look forward to the next review to see an acceleration of the divestment strategy that is one of the key priorities because of its critical impact on sustaining growth in Egypt, providing opportunities to the private sector, and also helping in the effort that Egypt is pursuing in reducing the debt. In the context of high interest rate, it’s very important to address debt service issue, and this would be accelerated by reducing the debt.  Therefore, we look forward to see progress on the authorities’ plan in terms of divestment.

    On Lebanon, the Fund has been supportive of Lebanon, and a staff-level agreement has been reached in 2022.  Lebanon staff, Lebanon team, is and remained actively engaged with the authorities, providing technical assistance.  And recently, we had two staff visits to Lebanon and the authorities have engaged with our team in order to reactivate a potential program.  They have expressed their interest for that.  The Lebanese economic and financial situation has been made

    more challenging with the recent implications of the war and the massive destruction that in addition to the need to address the financial and economic situation, Lebanon is also facing the need to deal with the reconstruction. 

    The pillars of the program will remain valid as they were negotiated.  Macroeconomic stability, based on addressing the legacy of the financial sector.  The legacy of debt, address the debt issue.  Second pillar is to deal with the macroeconomic stability through fiscal consolidation.  Third pillar is to strengthen governance by reforming SOEs and also increasing and improving the confidence factor.  And third is to address social issues, especially now with issues related to the reconstructions.  Discussions are taking place and staff is on active dialogue with the Lebanese authorities. 

    We are in discussion and therefore I think the discussions that we are having during the Spring Meetings are giving the opportunity for us to understand what are the reform priorities of the Lebanese government.  As you know, staff had a couple of visits in the last few weeks, and we will keep our active engagement with the Lebanese authorities.

    On Syria.  Of course, Syria has been absent for the last 15 years due to the war, and their engagement with the institution has been fairly limited since 2011.  The last Article IV consultation with Syria took place in 2009.  The international community and the regional community has been actively engaged in order to see how we could help Syria recover from a long period of war. 

    We had a preparatory meeting preparatory meeting in AlUla back in February where regional institutions and the international community have agreed to have another follow-up coordination meeting that took place last Tuesday where representatives from international institutions, bilaterals, have convened in order to assess the needs of Syria and also to develop a framework of coordination.  The Fund is engaged to support the international community in its engagement with Syria.  We have already started our assessment of the macroeconomic situation, the institutional capacity, and we look forward to continue our engagement with the Syrian authorities. 

    MS. AL SHAMI: Then you have one more question on Jordan.

    MR. AZOUR: Yes, Jordan. In Arabic?  Okay.  Jordan is one of the countries that have been affected by the tariffs, but this is still limited because of the kind of exports or the relationship between Jordan and the United States.  And Jordan managed to overcome, in the recent years, to overcome several shocks, including shocks related to the variability and volatility and the effect of the Gaza issues on the economy of Jordan.  And the latest reviews emphasized the need for Jordan to keep stability and also, despite the external shocks, to take the needed measures in order to improve the macroeconomic situation and to reinforce the economy.  And there has been discussions about supporting Jordan through a new mechanism, the Resilience and Sustainability Facility, in order to help Jordan in the measures that would help it improve adaptation with the climate change and other shocks and other pandemics.  There is actually progress in this regard.  And there will be a review next month by the Executive Board of the Fund about Jordan. 

    MS. AL SHAMI: We’ll turn to Dania, who’s on Webex online. Dania, please go ahead. 

    QUESTIONER: Hello, can you hear me? 

    MS. AL SHAMI: Yes, you can hear you.

    QUESTIONER: Hi.  Hello Dr. Jihad, I just have a follow-up question on the break-even oil prices for the Gulf.  In the October report, countries like Saudi Arabia had a very high break-even price of around 90.  I think it was the second biggest highest in the GCC after Bahrain.  I just wanted to see, this figure is likely to increase given the high expenditures, the lower oil prices.  How will the lower oil prices — you mentioned about the impact on GDP, but the prices, I think, since the beginning of the year have dropped by more than $10.00.  So, the impact has it been considered in the Regional Economic Report?  And especially because I don’t know the report, did it include the impact of the tariffs and the impact of the increase in OPEC production from May, which is accelerated?  And just one clarification, with regards to Saudi break-even, some analysts include the expenditure of the Public Investment Fund.  Is that part of the IMF estimates for the break-even?  What’s included in the break-even?  Thank you very much. 

    MS. AL SHAMI: Thank you. Any additional questions on GCC? Okay, let’s take the gentleman in the middle. 

    QUESTIONER: Hello Mr. Azour, Madame Al Shami, thank you for the opportunity.  Philippe Hage Boutros from L’Orient-Le Jour, Lebanon.  How does the IMF assess the potential impact of declining oil revenues stemming from a possible drop in prices amid the tariff crisis on the capacity and willingness of the Gulf countries to fund international aid, particularly for countries like Lebanon and Syria that urgently need reconstruction financing?  Does it anticipate a significant or relatively limited effect?  Thank you. 

    MS. AL SHAMI: Thank you. And we had one more question on Saudi that we received online. In light of the global trade repercussions, what is the effect on the Saudi market, especially on inflation and growth?  This question comes from Mohammed Al Sulami from Al Akhbariyah in Saudi Arabia. 

    MR. AZOUR: Let me start with Dania’s question. Dania, let me start by saying that over the last few years from a fiscal perspective, Saudi has made a significant improvement through various reforms in order to diversify revenues outside oil and also reduce certain expenditures, including on the subsidy side. And this effort to diversify revenues has led to an increase of non-oil revenues in the GDP for Saudi.  Of course, the last couple of years have been beneficial in terms of providing Saudi and other GCC countries with surplus in the fiscal as well as also in the current account, which have led to increase in buffers.  Of course, still the oil sector represent an important source of revenue and it’s still also an important source of foreign currencies. 

    Coming to the fiscal strategy, Saudi has established a medium-term fiscal framework that anchors policies and also help them deal with the volatility in oil price and become less pro cyclicals.  Of course, the increase in oil price, sorry, the decline in oil price will have impact on the fiscal and will lead to a potential additional drop in fiscal situation. 

    As I mentioned earlier, a decline of $10.00 per barrel or a decline of $1 million of production will have an impact on the fiscal between 2 to 3 percent.  The decline in oil price is accompanied with a recovery in oil production and Saudi was one of the largest, I would say, contributor to the voluntary drop in oil export. 

    When it comes to the link between fiscal and the investment strategy, the investment strategy has been also put in the medium-term framework in the context of the Vision 2030 and regularly there are updates, recalibration and also phasing, based on the capacity to implement and the priorities.

    In our projections, although developments were taking place almost at the time when we were releasing our outlook, we took into consideration the new assumptions on the oil price for this year as well as also on the growth projections. 

    The second question related to Saudi.  The impact of the latest developments on the Saudi economy.  Undoubtedly, the trade relations regarding the non-oil sector is limited with the United States and therefore the impact will also be limited on trade related to tariffs, especially as oil and gas are exempt from the increase in tariffs.  But there will be an indirect impact, as we’ve said.  Saudi Arabia also has a dollarized economy, whether on the side of exports or imports, and therefore the impact will be limited. 

    On the other hand, the reduction or the depreciation of the dollar will affect services, especially tourism.  And this is a sector that Saudi Arabia is trying to develop by establishing new expansion for tourism in Saudi Arabia.

    The other related question on support to the reconstruction in the region.  Let me first say two things.  One, ODA has declined over the last few years, and more recently with the decisions to stop some of the international assistance by USAID and others.  This will have an important impact, especially on countries in fragility who depend heavily on aid.  Countries like Somalia, Sudan, countries like Yemen.  And this represents a risk not only on the fiscal side, but also on the humanitarian side on food security.  This is the first point. 

    The second point is the region is, we’re talking here about the Levant, is going through an important prospect of post-conflict recovery.  Lebanon, Syria, Palestine, and hopefully, Yemen, and Sudan.  This would require strong international and financial assistance.  Of course, this also would require to accelerate certain number of reforms that will allow the private sector to provide financing.  Those countries have strong diasporas, and the recovery could also be co-led by international assistance, also by private sector support.  And some of the reforms, be it in Lebanon or in Syria, are very important to regain confidence and will allow private sector to play its key role in recovering those economies. 

    The region has been very supportive.  And when we look at the official assistance and the interest that is being shown by several countries in the region, be it in the recent meeting that took place in Saudi Arabia, in Al Ula, where ministers of finance from the GCC and regional institutions convened in order to explore opportunities to provide more assistance to those countries. 

    Again, I think it’s very important also to highlight that assistance has to accompany reform programs that will lay the ground to strong institutions will provide confidence for both citizens and also international, private and public community, in order to accelerate the recovery. 

    MS. AL SHAMI: Thank you, Jihad. We’ll take one more round of questions.  The lady on the second row here, please. 

    QUESTIONER:  Hello, I’m Mariam Ali from Dawn News Pakistan.  My question is how will the global tariff war uniquely impact Pakistan?  Any need of buffers in place to mitigate risks to the country?  Thank you. 

    MS. AL SHAMI: Thank you. Let’s take maybe one more question. The gentleman here sitting in the front. 

    QUESTIONER: Thank you, , Director Azour.  My question is on Yemen.  Igor Naimushin, RIA News Agency, D.C. Bureau.  So, last week U.S. struck Ras Isa fuel part in Yemen.  I would like to ask you to outline what repercussions this strike will have on energy security and economic situation in Yemen and broadly in region?  And if you could, provide any details how the IMF — what is the IMF view on longer-term risks for the region as U.S. operation on Yemen continues to unfold?  Thank you. 

    MS. AL SHAMI: Thank you. We’ll take one more question from the gentleman here in the –.

    QUESTIONER: Hi, my name is Magnus Sherman.  I wanted to return to Lebanon.  The new Prime Minister has pledged to not touch the hard currency deposits.  Does the IMF support that position? 

    MS. AL SHAMI: Thank you. And we have an online question from Camille Faris Abu Rafael. How can low- and middle-income countries in MENA balance urgent social needs with long-term fiscal sustainability amid rising debt and global uncertainty and persistently high interest rates?  We’ll take these questions, and we’ll take another round.  Thank you. 

    MR. AZOUR: On Pakistan. Pakistan made significant progress in restoring macroeconomic stability over the last 18 months and the numbers are, for Pakistan, are showing improvement both in terms of growth as well as also in inflation that dropped from 12.6 percent last year in 2024 fiscal year to 6.5 percent this year, expected to stay at this level for next year.  Debt is also stabilizing in the case of Pakistan, and recently Pakistan has been upgraded by rating agencies. 

    Of course, trade tensions will affect relatively Pakistan maybe more than the average in the region.  But I would say the impact on Pakistan directly can be offset by other measures that would allow the Pakistani economy to reposition itself in a world that is in the midst of one of the largest transformation in terms of trade, economic opportunities, and to reposition itself in order to address any risks, but also to potentially benefit from change in the trade routes. 

    The question on Yemen the situation on Yemen is extremely preoccupying at the humanitarian level, both in terms of food security as well as also in terms of human suffering.  And this situation has been inflicting heavy toll on the Yemeni people for a long period of time.  Of course, broadly speaking, instability has been one of the main issues that the region is dealing with.  Instability is one of the key sources of uncertainty for the region.  Addressing this instability is key in providing security for people to improve their living conditions, providing stability for the trade routes, and also provide opportunities for people to rebuild and reconstruct.  The Fund is engaged to (A) keep a very strong contacts with Yemen, provide technical assistance at a time where we cannot provide because of the security situation, financial assistance.  Therefore, we are actively supporting through technical assistance.  And we are also in regular engagement with the authorities. 

    Our next plan is to reengage through Article IV in order to assess the economic situation in Yemen, help the internationally recognized government assess the overall debt situation and the debt liabilities in order, later on, to help Yemen deal with the debt situation, and provide right assessment for the donor community to provide assistance. 

    Political stabilization security is very important to preserve human and social conditions, and the Fund stands ready to help Yemen as well as also other countries facing fragility and conflicts in the region.  And this is something that we are increasing our resources to provide support to those countries. 

    Lebanon.  Lebanon problems are complex in terms of how to address the overall financial challenge.  The solution has to deal through a comprehensive approach with all the financial issues that Lebanon is facing.  A piecemeal approach is not what Lebanon needs today.  A reform package that restores confidence, addresses the legacy of the past, provides opportunities for the economy to recover, by also promoting the capacity of the financial system to finance the recovery, mobilize international assistance to help Lebanon dealing with the reconstruction needs, and also support the reforms are priorities that our team is currently discussing with the Lebanese authorities. 

    The question related to balancing short-term and medium-term.  I think it’s a very important question.  We live currently in a world of high uncertainty and in our outlook this spring we have — and I would encourage you to read it,  it’s very interesting piece — we have tried to assess the impact of uncertainty on the region and the uncertainty is of multiple layers.  A global uncertainty, regional, geopolitical and conflict situation, but also internal or local uncertainties.  Those are important issues for countries to address. 

    In very brief, countries need to in the short term to preserve stability and that would require to increase their buffers.  And for those who have limited buffers to accelerate fiscal consolidations to reduce the risk, address some of their financing issues, especially countries who have high level of debt and for those who have buffers, preserve those and use them when they need.  But I think what is really important, especially given the lasting negative impact of uncertainties on countries, is to address the medium-term issues.  And addressing the medium-term issues will help unlock growth, accelerating structural reforms, improving economic conditions, provide stronger social protection framework by moving from untargeted subsidies to something that is more meaningful in terms of social support would be extremely beneficial for countries in the region. 

    MS. AL SHAMI: Thank you very much, Jihad and I’m afraid we have run out of time. Thank you all for participating with us today and as always, we will be posting the transcript online.  But just a reminder that we will be launching our report next week on May 1 so stay tuned for that.  And as Jihad mentioned, please join us tomorrow at 2:30 for the seminar on how countries can navigate uncertainties.  Jihad, any last words? 

    MR. AZOUR: Only to say thank you. And thanks to our friends here, the journalists. We look forward to provide you with more details in Dubai next week with all the details, as well as also country-specific information on our Regional Economic Outlook.  And two days after that, in Samarkand, in Uzbekistan, on the outlook for Caucasus and Central Asia.  Thank you very much. 

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Angham Al Shami

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

    https://www.imf.org/en/News/Articles/2025/04/24/tr-04242025-mcd-press-briefing-sms-2025

    MIL OSI

    MIL OSI Russia News

  • MIL-OSI: Calian Announces Appointment to Board of Directors

    Source: GlobeNewswire (MIL-OSI)

    OTTAWA, Ontario, April 24, 2025 (GLOBE NEWSWIRE) — Calian® Group Ltd. (TSX:CGY), a trusted provider of mission-critical solutions for defence, space and healthcare, today announced the appointment of Eric Demirian to its Board of Directors.

    Since 2003, Demirian has served as President of Parklea Capital Inc., a boutique financial and strategy advisory firm, and of Demicap Inc., a private investment firm. He was previously Executive Vice President at Group Telecom Inc. (2000–2003) and a partner at PricewaterhouseCoopers LLP (1983–2000), where he led the Information and Communications Practice. Demirian holds a Bachelor of Business Management from Toronto Metropolitan University and is a CPA, CGA and CA.

    Demirian has been Chair of the Board of Descartes Systems Group Inc. (TSX: DSG, NASDAQ: DSGX) since 2014, having joined the board in 2011 and previously chaired its Audit Committee. He currently serves on Descartes’ Audit and Corporate Governance Committees. He is also a director of IMAX Corporation (NYSE: IMAX) and has held board and audit committee roles at a number of public and private companies, including Enghouse Systems Ltd. (TSX: ENGH), from 2004 through 2025.

    “We are pleased to welcome Eric to our Board. His extensive financial expertise and experience on public company boards bring a depth of knowledge that will be invaluable to Calian. Eric’s proven ability to navigate complex financial landscapes, lead through mergers and acquisitions, and oversee organizations across diverse industries positions him as a strategic asset. His track record of guiding companies through growth and transformation speaks for itself. We are confident that he will be a highly effective and influential board member, with a keen understanding of both operational detail and long-term strategic vision,” said George Weber, Chair of the Board, Calian.

    “I am honored to join Calian’s Board as it continues on its exciting growth journey. I look forward to contributing my experience in scaling businesses and executing growth strategies to support the team and help drive long-term value for shareholders,” stated Demirian.

    Demirian’s appointment is effective immediately. With the recent additions of Josh Blair and Lisa Greatrix in February, the appointment of Demirian brings the total number of board members to 10, of which nine are independent and half are women.

    About Calian

    We keep the world moving forward. Calian® helps people communicate, innovate, learn and lead safe and healthy lives. Every day, our employees live our values of customer commitment, integrity, innovation, respect and teamwork to engineer cannot-fail solutions that solve complex problems. That’s Confidence. Engineered. A stable and growing 40-year company, we are headquartered in Ottawa with offices and projects spanning North American, European and international markets.

    Visit calian.com to learn about innovative healthcare, communications, learning and cybersecurity solutions.

    Product or service names mentioned herein may be the trademarks of their respective owners.

    Media inquiries:
    media@calian.com
    613-599-8600

    Investor Relations inquiries:
    ir@calian.com

    —————————————————————————–

    DISCLAIMER

    Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally accompanied by words such as “intend”, “anticipate”, “believe”, “estimate”, “expect” or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company’s most recent annual report and other reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.

    Calian · Head Office · 770 Palladium Drive · Ottawa · Ontario · Canada · K2V 1C8
    Tel: 613.599.8600 · Fax: 613-592-3664 · General info email: info@calian.com

    The MIL Network

  • MIL-OSI Security: Grand Jury Returns Four Indictments

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

    MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments yesterday. You are advised that a charge is merely an accusation, and a person named as defendant in an indictment is presumed innocent unless and until proven guilty.

    WAUSAU MAN CHARGED WITH POSSESSING FENTANYL AND METHAMPHETAMINE FOR DISTRIBUTION

    Christopher Harter, 49, Wausau, Wisconsin is charged in a two-count indictment with possessing fentanyl and methamphetamine for distribution. The indictment alleges that on March 7, 2025, Harter possessed 40 grams or more of fentanyl and 50 grams or more of methamphetamine with intent to distribute.

    If convicted, Harter faces a mandatory minimum of 5 years in prison and a maximum penalty of 40 years in prison on each count.

    The charge against him is the result of an investigation conducted by Federal Bureau of Investigation’s Central Wisconsin Narcotics Task Force comprised of agents from the FBI, Wisconsin State Patrol, Wisconsin Department of Criminal Investigation, Lincoln County Sheriff’s Office, Marathon County Sheriff’s Office, Portage County Sheriff’s Office, Mountain Bay Police Department, Wausau Police Department and Wisconsin National Guard Counter Drug Program.  Assistant U.S. Attorney Taylor L. Kraus is handling the case.

    JACKSON COUNTY MAN CHARGED WITH POSSESSING METHAMPHETAMINE FOR DISTRIBUTION

    Elvin Amundson, 39, Sparta, Wisconsin is charged with possessing more than 500 grams of methamphetamine for distribution.  The indictment alleges that he possessed the methamphetamine on April 14, 2021.

    If convicted, Amundson faces a mandatory minimum of 10 years in prison and a maximum penalty of life.

    The charge against Amundson is the result of an investigation conducted by the Federal Bureau of Investigation and the Jackson County Sheriff’s Office.  Assistant U.S. Attorney Steven P. Anderson is handling the case.

    ROTHSCHILD MAN CHARGED WITH ILLEGALLY POSSESSING A FIREARM

    Edward L. Jackson III, 28, Rothschild, Wisconsin, is charged with possessing a firearm as a felon. The indictment alleges that on May 20, 2024, Jackson possessed a loaded Sig Sauer pistol. If convicted, Jackson faces a maximum penalty of fifteen years in prison.

    The charge against him is the result of an investigation conducted by the Wausau Police Department, the Wausau Police Department’s Community Resource Unit, and the Federal Bureau of Investigation’s Central Wisconsin Narcotics Task Force (CWNTF), with assistance from the ATF Madison Crime Gun Task Force and the Marathon County District Attorney’s Office. The CWNTF is comprised of agents from the FBI, Wisconsin State Patrol, Wisconsin Department of Criminal Investigation, Lincoln County Sheriff’s Office, Marathon County Sheriff’s Office, Portage County Sheriff’s Office, Mountain Bay Metro Police Department, Wausau Police Department and Wisconsin National Guard Counter Drug Program. The ATF Madison Crime Gun Task Force consists of federal agents from ATF and Task Force Officers (TFOs) from state and local agencies throughout the Western District of Wisconsin. Assistant U.S. Attorney Julie Pfluger is handling the case.

    MEXICAN CITIZEN FOUND IN EAU CLAIRE CHARGED WITH ILLEGALLY REENTERING UNITED STATES

    Mario Govea-Monarca, 23, a citizen of Mexico found in Eau Claire, Wisconsin, is charged with reentering the United States after having been previously removed. The indictment alleges that on November 29, 2023, Govea-Monarca was found in the Western District of Wisconsin after having previously been removed and without having obtained the express consent of the United States Attorney General or the Secretary of Homeland Security to reapply for admission to the United States.

    If convicted, Govea-Monarca faces a maximum penalty of two years in prison.

    The charge against him is the result of an investigation conducted by the Department of Homeland Security, Immigration and Customs Enforcement (ICE). Assistant U.S. Attorney Jennifer Remington is handling the case.

    All cases involving illegal immigration and firearms are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

    MIL Security OSI

  • MIL-OSI: Oportun to Report First Quarter 2025 Financial Results on Thursday, May 8, 2025

    Source: GlobeNewswire (MIL-OSI)

    SAN CARLOS, Calif., April 24, 2025 (GLOBE NEWSWIRE) — Oportun (Nasdaq: OPRT), a mission-driven financial services company, will release financial results for its first quarter 2025 on Thursday, May 8, 2025, after market close.

    Oportun will host a conference call and earnings webcast to discuss results on Thursday, May 8, 2025, at 5:00 pm ET / 2:00 pm PT. A live webcast of the call will be accessible from Oportun’s investor relations website at investor.oportun.com, and a webcast replay of the call will be available for one year. The dial-in number for the conference call is 1-888-396-8049 (toll-free) or 1-416-764-8646 (international). Participants should call in 10 minutes prior to the scheduled start time.

    Oportun also announced today that the record date for determining stockholders entitled to vote at Oportun’s 2025 annual meeting of stockholders will be Tuesday, May 27, 2025.

    About Oportun

    Oportun (Nasdaq: OPRT) is a mission-driven financial services company that puts its members’ financial goals within reach. With intelligent borrowing, savings, and budgeting capabilities, Oportun empowers members with the confidence to build a better financial future. Since inception, Oportun has provided more than $19.7 billion in responsible and affordable credit, saved its members more than $2.4 billion in interest and fees, and helped its members save an average of more than $1,800 annually. For more information, visit Oportun.com.

    Additional Information and Where to Find It

    Oportun Financial Corporation (“Oportun”), its directors and certain executive officers are participants in the solicitation of proxies from stockholders in connection with Oportun’s 2025 Annual Meeting of Stockholders (the “Annual Meeting”). Oportun plans to file a proxy statement (the “2025 Proxy Statement”) with the Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies for the Annual Meeting.

    Jo Ann Barefoot, Mohit Daswani, Ginny Lee, Carlos Minetti, Louis Miramontes, Scott Parker, Sandra A. Smith, Richard Tambor, Raul Vazquez and R. Neil Williams, all of whom are members of Oportun’s board of directors, are participants in Oportun’s solicitation. Additional information regarding such participants, including their direct or indirect interests, by security holdings or otherwise, will be included in the 2025 Proxy Statement and other relevant documents to be filed with the SEC in connection with the Annual Meeting. Information relating to the foregoing can also be found in Oportun’s definitive proxy statement for its 2024 Annual Meeting of Stockholders (the “2024 Proxy Statement”), which was filed with the SEC on May 13, 2024, and is available here. Particular attention is directed to the sections of the 2024 Proxy Statement captioned “Directors, Executive Officers and Corporate Governance,” “Non-Employee Director Compensation,” “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters,” “Executive Compensation” and “Certain Relationships and Related Transactions.” To the extent that holdings of such participants in Oportun’s securities have changed since the amounts printed in the 2024 Proxy Statement, such changes have been reflected on the following filings: for Ms. Barefoot, on June 28, 2024; for Mr. Daswani, on June 28, 2024 and December 13, 2024; for Ms. Lee, on June 28, 2024; for Mr. Minetti, on June 28, 2024 and December 13, 2024; for Mr. Miramontes, on June 28, 2024; for Mr. Parker, on April 25, 2024, June 18, 2024, and June 28, 2024; for Ms. Smith, on June 28, 2024; for Mr. Tambor, on June 28, 2024 and June 28, 2024; for Mr. Vazquez, on June 18, 2024, September 12, 2024, December 2, 2024, March 12, 2025, and April 4, 2025; and for Mr. Williams, on June 28, 2024 and December 11, 2024.

    Promptly after filing its definitive 2025 Proxy Statement with the SEC, Oportun will mail the definitive 2025 Proxy Statement and a GREEN proxy card to each stockholder entitled to vote at the Annual Meeting. STOCKHOLDERS ARE URGED TO READ THE 2025 PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT OPORTUN WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Stockholders may obtain, free of charge, Oportun’s proxy statement (in both preliminary and definitive form), any amendments or supplements thereto, and any other relevant documents filed by Oportun with the SEC in connection with the Annual Meeting at the SEC’s website, which is located here. Copies of Oportun’s definitive 2025 Proxy Statement, any amendments or supplements thereto, and any other relevant documents filed by Oportun with the SEC in connection with the Annual Meeting will also be available, free of charge, at Oportun’s website, which is located here, or by writing to Investor Relations, Oportun Financial Corporation, 2 Circle Star Way, San Carlos, CA 94070. In addition, copies of these materials may be requested, free of charge, from Oportun’s proxy solicitor, Innisfree M&A Incorporated, by calling toll-free to (877) 800-5195.

    The MIL Network

  • MIL-OSI: Golar LNG Limited – Q1 2025 results presentation

    Source: GlobeNewswire (MIL-OSI)

    Golar LNG’s 1st Quarter 2025 results will be released before the NASDAQ opens on Wednesday, May 21, 2025. In connection with this, a webcast presentation will be held at 1:00 P.M (London Time) on Wednesday May 21, 2025. The presentation will be available to download from the Investor Relations section at www.golarlng.com.

    We recommend that participants join the conference call via the listen-only live webcast link provided. Sell-side analysts interested in raising a question during the Q&A session that will immediately follow the presentation should access the event via the conference call by clicking on this link. We recommend connecting 10 minutes prior to the call start. Information on how to ask questions will be given at the beginning of the Q&A session. There will be a limit of two questions per participant.

    a. Listen-only live webcast link
    Go to the Investors, Results Centre section at www.golarlng.com and click on the link to “Webcast”. To listen to the conference call from the web, you need to have a sound card on your computer, but no special plug ins are required to access the webcast. There is a “Help” link available on the webcast pages for anyone who may have issues accessing.

    b. Teleconference

    Conference call participants should register to obtain their dial in and passcode details. This process eliminates wait times when joining the call.

    When you log in, you can either dial in using the provided numbers and your unique PIN, or select the “Call me” option and type in your phone number to be instantly connected to the call. Use the following link to register. 

    Please download the presentation material from www.golarlng.com (Investors, Results Centre) to view it while listening to the conference.

    If you are not able to listen at the time of the call, you can assess a replay of the event audio for a limited time on www.golarlng.com (Investors, Results Centre).

    This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act.

    The MIL Network

  • MIL-OSI: Bel Reports First Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    WEST ORANGE, N.J., April 24, 2025 (GLOBE NEWSWIRE) — Bel Fuse Inc. (Nasdaq: BELFA and BELFB) today announced preliminary financial results for the first quarter of 2025.

    First Quarter 2025 Highlights

    Net sales of $152.2 million compared to $128.1 million in Q1-24. Excluding $32.4 million of contribution from Enercon, organic sales down 6.4% from Q1-24.
    Gross profit margin of 38.6%, up from 37.5% in Q1-24
    GAAP net earnings attributable to Bel shareholders of $17.9 million versus $15.9 million in Q1-24
    Non-GAAP net earnings attributable to Bel shareholders of $16.8 million versus $17.0 million in Q1-24
    Adjusted EBITDA of $30.9 million (20.3% of sales) as compared to $22.4 million (17.5% of sales) in Q1-24
    Announced Farouq Tuweiq’s appointment as Bel’s President and CEO, to be effective immediately following the Company’s Annual Meeting of Shareholders (to be held in May 2025)
       

    “We are pleased with our first quarter results, which benefitted from our increased exposure within the defense and commercial aerospace industries and strength in the emerging AI end market,” said Daniel Bernstein, President and CEO. “These factors helped to mitigate the seasonality around Chinese New Year which has historically dictated the trend for our first quarter. Looking ahead at our underlying business demand, we generally expect continued strength in the defense, space and AI end markets throughout the year, which are anticipated to mitigate lower volumes going into the rail, e-Mobility and consumer markets,” concluded Mr. Bernstein.

    Farouq Tuweiq, CFO, added, “Looking to the second quarter, we are operating in a highly dynamic environment and there is difficulty in predicting the moving target of tariffs and assessing the corresponding impact given ongoing and potential future changes. As Bel generally designs and manufactures its products within close geographic proximity to our customers, we estimate that approximately 75% of our global sales are not currently subject to the recent U.S. tariffs that have been imposed. We estimate that ~10% of our consolidated sales relate to product that is manufactured in China and shipped into the U.S., and this is the subset of our revenue where certain customers have requested a pause on orders while the supply chain awaits additional clarity on the longer-term tariff policy with China. Based on information available today, GAAP net sales in the second quarter of 2025 are projected to be in the range of $145 to $155 million, with gross margin in the range of 37% to 39%. This guidance for the second quarter, which is typically solely based on our underlying business demand and existing orders on hand, has been modified downward to take into account approximately $8-10 million of what we believe is a reasonable allowance for potential downside impact from China-related tariffs and a lower expected volume of intraquarter turns. The team will continue to closely monitor the evolving tariff landscape and assess potential alternatives that are within our control,” concluded Mr. Tuweiq.

    Mr. Bernstein continued, “With my upcoming transition to the role of non-executive Chairman of the Board in May, it has been a privilege to be part of Bel’s journey over the past 45 years. The success of the Company is based solely on the dedication of all of our associates, past and present, and it has been an honor to lead such a talented group of associates during my tenure as President and CEO. I am confident about Bel’s future under the leadership of Farouq and the Executive team,” concluded Mr. Bernstein.

    Non-GAAP financial measures, such as Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA, adjust corresponding GAAP measures for provision for income taxes, other income/expense, net, interest income/expense, and depreciation and amortization, and also exclude, where applicable for the covered period presented in the financial statements, certain unusual or special items identified by management such as restructuring charges, gains/losses on sales of businesses and properties, acquisition related costs, impairment charges, noncontrolling interest (“NCI”) adjustments from fair value to redemption value, and certain litigation costsIn addition, in the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presentedPlease refer to the financial information included with this press release for reconciliations of GAAP financial measures to Non-GAAP financial measures and our explanation of why we present Non-GAAP financial measures.

    Conference Call
    Bel has scheduled a conference call for 8:30 a.m. ET on Friday, April 25, 2025 to discuss these results. To participate in the conference call, investors should dial 877-407-0784, or 201-689-8560 if dialing internationally. The presentation will additionally be broadcast live over the Internet and will be available at https://ir.belfuse.com/events-and-presentations. The webcast will be available via replay for a period of at least 30 days at this same Internet address. For those unable to access the live call, a telephone replay will be available at 844-512-2921, or 412-317-6671 if dialing internationally, using access code 13753007 after 12:30 pm ET, also for 30 days.

    About Bel
    Bel (www.belfuse.com) designs, manufactures and markets a broad array of products that power, protect and connect electronic circuits. These products are primarily used in the defense, commercial aerospace, networking, telecommunications, computing, general industrial, high-speed data transmission, transportation and eMobility industries. Bel’s portfolio of products also finds application in the automotive, medical, broadcasting and consumer electronics markets. Bel’s product groups include Power Solutions and Protection (front-end, board-mount, industrial and transportation power products, module products and circuit protection), Connectivity Solutions (expanded beam fiber optic, copper-based, RF and RJ connectors and cable assemblies), and Magnetic Solutions (integrated connector modules, power transformers, power inductors and discrete components). The Company operates facilities around the world.

    Company Contact:
    Farouq Tuweiq  
    Chief Financial Officer  
    ir@belf.com

    Investor Contact:
    Three Part Advisors
    Jean Marie Young, Managing Director or Steven Hooser, Partner
    631-418-4339
    jyoung@threepa.com; shooser@threepa.com

    Cautionary Language Concerning Forward-Looking Statements
    This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, our guidance for the second quarter of 2025; our statements regarding our expectations for future periods generally including anticipated financial performance, projections and trends for the remainder of the 2025 year ahead and other future periods; our statements regarding future events, performance, plans, intentions, beliefs, expectations and estimates, including statements regarding matters such as trends and expectations as to our sales, volumes, gross margin, products, product groups, customers, geographies and end markets; statements about uncertainty of the evolving tariff landscape, associated difficulties in forecasting, expectations regarding future clarity on tariff policy, the Company’s estimates concerning Bel’s global sales and recently imposed tariffs, and the Company’s intention to continue to monitor the tariff landscape and assess potential alternatives; statements about anticipated continued strength in certain end markets, and views on the effects on the Company’s overall future performance; statements about the Company’s upcoming management transition; and statements regarding our expectations and beliefs regarding trends in the Company’s business and industry and the markets in which Bel operates, and about broader market trends and the macroeconomic environment generally, and other statements regarding the Company’s positioning, its strategies, future progress, investments, plans, targets, goals, and other focuses and initiatives, and the expected timing and potential benefits thereof. These forward-looking statements are made as of the date of this release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “forecast,” “outlook,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Bel’s control. Bel’s actual results could differ materially from those stated or implied in our forward-looking statements (including without limitation any of Bel’s projections) due to a number of factors, including but not limited to, difficulties associated with integrating previously acquired companies, including any unanticipated difficulties, or unexpected or higher than anticipated expenditures, relating to Bel’s November 2024 acquisition of Enercon, and including, without limitation, the risk that Bel is unable to integrate the Enercon business successfully or difficulties that result in the failure to realize the expected benefits and synergies within the expected time period (if at all); the possibility that the Bel’s intended acquisition of the remaining 20% stake in Enercon is not completed in accordance with the shareholders agreement as contemplated for any reason, and any resulting disruptions to Bel’s business and its currently 80% owned Enercon subsidiary as a result thereof; trends in demand which can affect Bel’s products and results, including that demand in Enercon’s end markets can be cyclical, impacting the demand for Enercon’s products, which could be materially adversely affected by reductions in defense spending; the market concerns facing Bel’s customers, and risks for the Company’s business in the event of the loss of certain substantial customers; the continuing viability of sectors that rely on Bel’s products; the effects of business and economic conditions, and challenges impacting the macroeconomic environment generally and/or Bel’s industry in particular; the effects of rising input costs, and cost changes generally, including the potential impact of inflationary pressures; capacity and supply constraints or difficulties, including supply chain constraints or other challenges; the impact of public health crises; difficulties associated with the availability of labor, and the risks of any labor unrest or labor shortages; risks associated with Bel’s international operations, including Bel’s substantial manufacturing operations in China, and following Bel’s November 2024 acquisition of Enercon , risks associated with operations in Israel, which may be adversely affected by political or economic instability, major hostilities or acts of terrorism in the region; risks associated with restructuring programs or other strategic initiatives, including any difficulties in implementation or realization of the expected benefits or cost savings; product development, commercialization or technological difficulties; the regulatory and trade environment including the potential effects of the imposition of new or increased tariffs and trade restrictions that may impact Bel, its customers and/or its suppliers, and risks associated with the evolving trade environment, the ongoing implementation and modification of tariffs, trade restrictions, and changes in trade agreements, and general uncertainty about future changes in trade and tariff policy; risks associated with fluctuations in foreign currency exchange rates and interest rates; uncertainties associated with legal proceedings; the market’s acceptance of the Company’s new products and competitive responses to those new products; the impact of changes to U.S. and applicable foreign legal and regulatory requirements, including tax laws, trade and tariff policies, such as any new or increase in tariffs imposed either by the U.S. government on foreign imports or by a foreign government on U.S. exports related to the countries in which Bel transacts business; and the risks detailed in Bel’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and in subsequent reports filed by Bel with the Securities and Exchange Commission, as well as other documents that may be filed by Bel from time to time with the Securities and Exchange Commission. In light of the risks and uncertainties impacting Bel’s business, there can be no assurance that any forward-looking statement will in fact prove to be correct. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent Bel’s views as of the date of this press release. Bel anticipates that subsequent events and developments will cause its views to change. Bel undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Bel’s views as of any date subsequent to the date of this press release.

    Non-GAAP Financial Measures

    The Non-GAAP financial measures identified in this press release as well as in the supplementary information to this press release (Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA) are not measures of performance under accounting principles generally accepted in the United States of America (“GAAP”). These measures should not be considered a substitute for, and the reader should also consider, income from operations, net earnings, earnings per share and other measures of performance as defined by GAAP as indicators of our performance or profitability. Our non-GAAP measures may not be comparable to other similarly-titled captions of other companies due to differences in the method of calculation. We present results adjusted to exclude the effects of certain unusual or special items and their related tax impact that would otherwise be included under U.S. GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. For additional information about our use of non-GAAP financial measures in connection with our Incentive Compensation Program, please see the Executive Compensation Discussion and Analysis (CD&A) section appearing in our Definitive Proxy Statement filed with the Securities and Exchange Commission on April 11, 2025.

    Website Information
    We routinely post important information for investors on our website, www.belfuse.com, in the “Investor Relations” section. We use our website as a means of disclosing material, otherwise non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investor Relations section of our website, in addition to following our press releases, Securities and Exchange Commission (SEC) filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

    [Financial tables follow]

           
    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Statements of Operations
    (in thousands, except per share amounts)
    (unaudited)
           
        Three Months Ended  
        March 31,  
        2025     2024  
                     
    Net sales   $ 152,238     $ 128,090  
    Cost of sales     93,419       80,012  
    Gross profit     58,819       48,078  
    As a % of net sales     38.6 %     37.5 %
                     
    Research and development costs     7,222       5,215  
    Selling, general and administrative expenses     29,507       24,944  
    As a % of net sales     19.4 %     19.5 %
    Restructuring charges     (2,933 )     65  
    Income from operations     25,023       17,854  
    As a % of net sales     16.4 %     13.9 %
                     
    Interest expense     (4,152 )     (434 )
    Interest income     275       1,115  
    Other income, net     2,639       1,817  
    Earnings before income taxes     23,785       20,352  
                     
    Provision for income taxes     5,463       4,478  
    Effective tax rate     23.0 %     22.0 %
    Net earnings   $ 18,322     $ 15,874  
    As a % of net sales     12.0 %     12.4 %
                     
    Less: Net earnings attributable to noncontrolling interest     838        
    Redemption value adjustment attributable to noncontrolling interest     (390 )      
    Net earnings attributable to Bel Fuse Shareholders   $ 17,874     $ 15,874  
                     
    Weighted average number of shares outstanding:                
    Class A common shares – basic and diluted     2,115       2,139  
    Class B common shares – basic and diluted     10,457       10,610  
                     
    Net earnings per common share:                
    Class A common shares – basic and diluted   $ 1.36     $ 1.19  
    Class B common shares – basic and diluted     1.43     $ 1.26  
                     

    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.

                 
    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Balance Sheets
    (in thousands, unaudited)
                 
        March 31, 2025     December 31, 2024  
    Assets                
    Current assets:                
    Cash and cash equivalents   $ 65,927     $ 68,253  
    Held to maturity U.S. Treasury securities     950       950  
    Accounts receivable, net     103,643       111,376  
    Inventories     164,815       161,370  
    Other current assets     33,090       31,581  
    Total current assets     368,425       373,530  
    Property, plant and equipment, net     47,271       47,879  
    Right-of-use assets     24,962       25,125  
    Related-party note receivable     3,270       2,937  
    Equity method investment     9,856       9,265  
    Goodwill and other intangible assets, net     436,438       439,984  
    Other assets     50,234       51,069  
    Total assets   $ 940,456     $ 949,789  
                     
    Total liabilities, redeemable noncontrolling interests and stockholders’ equity                
    Current liabilities:                
    Accounts payable   $ 46,110     $ 49,182  
    Operating lease liability, current     8,540       7,954  
    Other current liabilities     56,585       70,933  
    Total current liabilities     111,235       128,069  
    Long-term debt     280,000       287,500  
    Operating lease liability, long-term     17,349       17,763  
    Other liabilities     73,937       75,295  
    Total liabilities     482,521       508,627  
    Redeemable noncontrolling interests     81,034       80,586  
    Stockholders’ equity     376,901       360,576  
    Total liabilities, redeemable noncontrolling interests and stockholders’ equity   $ 940,456     $ 949,789  
                     

    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.

           
    Bel Fuse Inc.
    Supplementary Information(1)
    Condensed Consolidated Statements of Cash Flows
    (in thousands, unaudited)
           
        Three Months Ended  
        March 31,  
        2025     2024  
                     
    Cash flows from operating activities:                
    Net earnings   $ 18,322     $ 15,874  
    Adjustments to reconcile net earnings to net cash provided by operating activities:                
    Depreciation and amortization     6,684       3,684  
    Stock-based compensation     1,179       804  
    Amortization of deferred financing costs     295       26  
    Deferred income taxes     (1,412 )     (1,676 )
    Net unrealized gains on foreign currency revaluation     (3,663 )     (647 )
    Other, net     (518 )     (71 )
    Changes in operating assets and liabilities:                
    Accounts receivable, net     8,220       725  
    Unbilled receivables     (601 )     3,644  
    Inventories     (2,462 )     5,688  
    Accounts payable     (3,374 )     (7,575 )
    Accrued expenses     (11,058 )     (16,440 )
    Accrued restructuring costs     (4,508 )     (1,254 )
    Income taxes payable     4,107       4,971  
    Other operating assets/liabilities, net     (3,064 )     (1,603 )
    Net cash provided by operating activities     8,147       6,150  
                     
    Cash flows from investing activities:                
    Purchases of property, plant and equipment     (2,790 )     (2,929 )
    Purchases of held to maturity U.S. Treasury securities           (42,726 )
    Proceeds from held to maturity securities           30,374  
    Investment in related party notes receivable     (333 )     (492 )
    Proceeds from sale of property, plant and equipment     58       192  
    Net cash used in investing activities     (3,065 )     (15,581 )
                     
    Cash flows from financing activities:                
    Dividends paid to common stockholders     (829 )     (837 )
    Purchases of common stock           (6,283 )
    Proceeds of long-term debt     5,000        
    Repayments of long-term debt     (12,500 )      
    Net cash used in financing activities     (8,329 )     (7,120 )
                     
    Effect of exchange rate changes on cash and cash equivalents     921       (1,500 )
                     
    Net decrease in cash and cash equivalents     (2,326 )     (18,051 )
    Cash and cash equivalents – beginning of period     68,253       89,371  
    Cash and cash equivalents – end of period   $ 65,927     $ 71,320  
                     
                     
    Supplementary information:                
    Cash paid during the period for:                
    Income taxes, net of refunds received   $ 2,277     $ 978  
    Interest payments   $ 4,207     $ 981  
    ROU assets obtained in exchange for lease obligations   $ 637     $ 2,951  
                     

    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.

                 
    Bel Fuse Inc.
    Supplementary Information(1)
    Product Group Highlights
    (dollars in thousands, unaudited)
                 
        Sales     Gross Margin  
        Q1-25     Q1-24     % Change     Q1-25     Q1-24     Basis Point Change  
    Power Solutions and Protection   $ 83,054     $ 60,247       37.9 %     42.6 %     44.0 %     (140 )
    Connectivity Solutions     50,730       54,285       -6.5 %     37.9 %     36.1 %     180  
    Magnetic Solutions     18,454       13,558       36.1 %     24.7 %     16.0 %     870  
    Total   $ 152,238     $ 128,090       18.9 %     38.6 %     37.5 %     110  
                                                     

    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.

           
    Bel Fuse Inc.
    Supplementary Information(1)
    Reconciliation of GAAP Net Earnings to Non-GAAP Operating Income and Adjusted EBITDA(2)(3)
    (in thousands, unaudited)
           
        Three Months Ended  
        March 31,  
        2025     2024  
                     
    GAAP Net earnings   $ 18,322     $ 15,874  
    Provision for income taxes     5,463       4,478  
    Other income/expense, net     (2,639 )     (1,817 )
    Interest income     (275 )     (1,115 )
    Interest expense     4,152       434  
    GAAP Operating Income   $ 25,023     $ 17,854  
    Restructuring charges     (2,933 )     65  
    Amortization of inventory step-up     958        
    Stock-based compensation     1,179       804  
    Non-GAAP Operating Income   $ 24,227     $ 18,723  
    Depreciation and amortization     6,684       3,684  
    Adjusted EBITDA   $ 30,911     $ 22,407  
    % of net sales     20.3 %     17.5 %
                     

    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    (2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.
    (3) In the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented.

    Bel Fuse Inc.
    Supplementary Information(1)
    Reconciliation of GAAP Measures to Non-GAAP Measures(2)(4)
    (in thousands, except per share data) (unaudited)
     

    The following tables detail the impact that certain unusual or special items had on the Company’s net earnings per common Class A and Class B basic and diluted shares (“EPS”) and the line items in which these items were included on the consolidated statements of operations.

        Three Months Ended March 31, 2025     Three Months Ended March 31, 2024  
    Reconciling Items   Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)     Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)  
                                                                                     
    GAAP measures   $ 23,785     $ 5,463     $ 17,874     $ 1.36     $ 1.43     $ 20,352     $ 4,478     $ 15,874     $ 1.19     $ 1.26  
    Restructuring charges     (2,933 )     (371 )     (2,562 )     (0.20 )     (0.21 )     65             65              
    Redemption value adjustment on redeemable NCI                 (390 )     (0.03 )     (0.03 )                              
    Amortization of inventory step-up     958       220       738       0.06       0.06                                
    Stock-based compensation     1,179       243       936       0.07       0.08       804       166       638       0.05       0.05  
    Amortization of intangibles     3,686       648       3,038       0.23       0.24       1,394       264       1,130       0.09       0.09  
    Unrealized foreign currency exchange (gains) losses     (3,663 )     (868 )     (2,795 )     (0.21 )     (0.22 )     (899 )     207       (692 )     (0.05 )     (0.05 )
    Non-GAAP measures   $ 23,012     $ 5,335     $ 16,839     $ 1.28     $ 1.35     $ 21,716     $ 5,115     $ 17,015     $ 1.27     $ 1.35  
                                                                                     

    (1) The supplementary information included in this press release for 2025 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    (2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.
    (3) Individual amounts of earnings per share may not agree to the total due to rounding.
    (4) In the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented.

           
    Bel Fuse Inc.
    Supplementary Information
    (1)
    Reconciliation of GAAP Measures to Non-GAAP Measures
    (2)(4)
    (in thousands, except per share data) (unaudited)
           
        Three Months Ended June 30, 2024  
    Reconciling Items   Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)  
                                             
    GAAP measures   $ 22,883     $ 4,077     $ 18,806     $ 1.43     $ 1.50  
    Restructuring charges     638       153       485       0.04       0.04  
    Stock-based compensation     972       200       772       0.06       0.06  
    Amortization of intangibles     1,148       239       909       0.07       0.07  
    Unrealized foreign currency exchange (gains) losses     370       80       290       0.02       0.02  
    Non-GAAP measures   $ 26,011     $ 4,749     $ 21,262     $ 1.61     $ 1.70  
        Three Months Ended September 30, 2024  
    Reconciling Items   Earnings before taxes     Provision for income taxes     Net Earnings Attributable to Bel Fuse Shareholders     Class A EPS(3)     Class B EPS(3)  
                                             
    GAAP measures   $ 11,188     $ 3,108     $ 8,080     $ 0.61     $ 0.65  
    Restructuring charges     1,087       154       933       0.07       0.07  
    Acquisition related costs     4,292       987       3,305       0.25       0.27  
    Stock-based compensation     1,007       208       799       0.06       0.06  
    Amortization of intangibles     1,152       239       913       0.07       0.07  
    Unrealized foreign currency exchange (gains) losses     1,075       266       809       0.06       0.06  
    Non-GAAP measures   $ 19,801     $ 4,962     $ 14,839     $ 1.13     $ 1.19  
                                             

    (1) The supplementary information included in this press release for 2024 is preliminary and subject to change prior to the filing of our upcoming Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
    (2) In this press release and supplemental information, we have included Non-GAAP financial measures, including Non-GAAP net earnings attributable to Bel shareholders, Non-GAAP EPS, Non-GAAP Operating Income and Adjusted EBITDA. We present results adjusted to exclude the effects of certain specified items and their related tax impact that would otherwise be included under GAAP, to aid in comparisons with other periods. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. We use these non-GAAP measures to compare the Company’s performance to that of prior periods for trend analysis and for budgeting and planning purposes. We also believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing the Company’s financial measures with other similarly situated companies in our industry, many of which present similar non-GAAP financial measures to investors. We also use non-GAAP measures in determining incentive compensation. See the section above captioned “Non-GAAP Financial Measures” for additional information.
    (3) Individual amounts of earnings per share may not agree to the total due to rounding.
    (4) In the fourth quarter of 2024, we modified our presentation of Non-GAAP financial measures, including revising our definitions of Adjusted EBITDA and Non-GAAP EPS, to additionally exclude from these Non-GAAP measures (i) stock-based compensation, (ii) amortization of intangibles (which primarily relates to the amortization of finite-lived customer relationships and technology associated with the Company’s historical acquisitions, including those associated with the recent acquisition of Enercon), and (iii) unrealized foreign currency exchange (gains) losses. We believe this change enhances investor insight into our operational performance. We have applied this modified definition of Adjusted EBITDA and Non-GAAP EPS to all periods presented.

    The MIL Network

  • MIL-OSI USA News: Fact Sheet: President Donald J. Trump Strengthens Probationary Periods to Improve the Federal Service

    Source: The White House

    ENHANCING FEDERAL WORKFORCE ACCOUNTABILITY: Today, President Donald J. Trump signed an Executive Order strengthening probationary periods in the federal service.

    • The Order establishes a new Civil Service Rule XI to govern probationary and trial periods for federal employees, superseding existing civil service regulations that limited agency discretion in evaluating such employees.
    • Instead of these employees becoming tenured civil servants by default, Rule XI requires agencies to affirmatively certify that finalizing their appointment after their probationary or trial period concludes advances the public interest.
      • This fulfills a longstanding Merit Systems Protection Board recommendation.
    • The Order mandates that agencies utilize probationary and trial periods (typically one year) to assess employees’ fitness and alignment with agency needs and the public interest.
    • It creates an individualized review process, requiring a designee of agency leadership to meet with probationary employees at least 60 days before their probationary period ends to discuss their performance and continued employment.
    • The Order allows the Office of Personnel Management (OPM) Director to establish an appeals process for probationary terminations in some circumstances.
    • The Order requires agencies to identify current probationary employees and designate evaluators within 15 days, ensuring accountability from the outset.

    ENSURING A HIGH-QUALITY FEDERAL WORKFORCE: President Trump believes a meaningful probationary process is essential to maintaining a merit-based federal workforce that serves the American people.

    • Probationary periods are a critical part of the hiring process to confirm an employee’s ability to perform their duties, yet agencies have underutilized this tool, resulting in the indefinite retention of underperforming staff.
    • The Government Accountability Office has documented that agencies often fail to screen out unsuitable employees during their probationary period, contrary to congressional intent in the Civil Service Reform Act of 1978.
    • Existing OPM regulations have hindered agencies by imposing unnecessary obstacles to terminating probationary employees and failing to require certification that continued employment benefits the public interest.
    • A high-quality, efficient federal workforce, dedicated to the public interest and no larger than necessary, is vital to serving taxpayers.
    • Strengthening probationary periods ensures federal employees are held to high standards.

    DRAINING THE SWAMP: The federal workforce must work for the American people, and thanks to President Trump, the federal bureaucracy is being held accountable.

    • Taxpayers will no longer be burdened by an oversized, unaccountable federal bureaucracy that fails to prioritize the public interest.
    • Last month, President Trump signed a Presidential Memorandum clarifying federal authority to take “suitability” actions against federal employees, ensuring accountability for bad conduct and preventing security risks both before and after appointment to federal service.
    • President Trump also signed the DOGE Workforce Optimization Executive Order to make the federal workforce more efficient and effective, significantly reducing the size of government.
    • This Executive Order builds on the President’s longstanding power to create Civil Service Rules to govern probationary periods in the federal government.

    MIL OSI USA News

  • MIL-OSI USA News: Fact Sheet: President Donald J. Trump Investigates Unlawful “Straw Donor” and Foreign Contributions in American Elections

    Source: The White House

    INVESTIGATING “STRAW” DONORS: Today, President Donald J. Trump signed a Presidential Memorandum to crack down on illegal “straw donor” and foreign contributions in American elections, following reports and congressional investigations regarding potentially unlawful activities through ActBlue and other online fundraising platforms.

    • The Memorandum directs the Attorney General to investigate and take appropriate action concerning allegations regarding the use of online fundraising platforms to make “straw” or “dummy” contributions and to make foreign contributions to U.S. political candidates and committees, all of which break the law.
    • Specifically, the Memorandum notes that a congressional investigation revealed significant fraud schemes using ActBlue and, over a 30-day period during the 2024 election cycle, hundreds of ActBlue donations from foreign IP addresses using prepaid cards, despite it being illegal for foreign nationals to contribute to U.S. elections.
    • It instructs the Attorney General to report the results of the investigation to the President, through the Counsel to the President. 

    PROTECTING AMERICAN DEMOCRACY: President Trump is taking action to address malign actors and foreign nationals who seek to illegally influence American elections, undermining the integrity of our electoral process.

    • Recently uncovered evidence suggests that online fundraising platforms are being used to launder excessive and prohibited contributions to political candidates and committees.
    • Bad actors have sought to evade Federal source and amount limitations by breaking down large contributions into smaller ones, often attributing them to numerous individuals without their consent or knowledge.
    • These “straw donations” are frequently made through “dummy” accounts, using methods such as gift cards or prepaid credit cards to avoid detection.
    • ActBlue has become notorious for its lax standards that enable unverified and fraudulent donations. 
    • A recent House of Representatives investigation found that ActBlue detected at least 22 “significant fraud campaigns” in recent years—nearly half of which had a foreign nexus.
      • Over a 30-day window during the 2024 election cycle, ActBlue detected 237 donations from foreign IP addresses using prepaid cards.
      • The investigation revealed that ActBlue trained employees to “look for reasons to accept contributions,” even in the face of suspicious activity.
    • Until recently, ActBlue accepted political contributions without requiring a card verification value (CVV), making it easy to contribute without identity verification.
      • Before addressing this issue in response to a congressional investigation, ActBlue tested whether this would hurt its fundraising.
    • Numerous state attorneys general have opened investigations into ActBlue over suspicious donations made through obscured identities and untraceable means.

    MAKING ELECTIONS SECURE AGAIN:  Voters deserve elections they can trust, and that confidence is being restored thanks to President Trump. 

    • President Trump is following through on his promise to secure our elections.
      • President Trump: “We’re going to fix our elections so that our elections are going to be honorable and honest.”
      • President Trump: “We will secure our elections, and they will be secure once and for all.”
    • President Trump recently signed an Executive Order to protect the integrity of American elections.
    • Unlike the Biden Administration, which prioritized political agendas over fair elections, President Trump is putting the American people back in charge.

    MIL OSI USA News

  • MIL-OSI USA: SPC Tornado Watch 167

    Source: US National Oceanic and Atmospheric Administration

    Note:  The expiration time in the watch graphic is amended if the watch is replaced, cancelled or extended.Note: Click for Watch Status Reports.
    SEL7

    URGENT – IMMEDIATE BROADCAST REQUESTED
    Tornado Watch Number 167
    NWS Storm Prediction Center Norman OK
    335 PM CDT Thu Apr 24 2025

    The NWS Storm Prediction Center has issued a

    * Tornado Watch for portions of
    Oklahoma Panhandle
    Texas Panhandle and South Plains

    * Effective this Thursday afternoon and evening from 335 PM until
    1100 PM CDT.

    * Primary threats include…
    A couple tornadoes possible
    Scattered large hail and isolated very large hail events to 4
    inches in diameter likely
    Isolated damaging wind gusts to 70 mph possible

    SUMMARY…Widely scattered thunderstorms are forecast to rapidly
    develop this afternoon into the early evening. Environmental shear
    and buoyancy combinations strongly favor intense, discrete
    supercells. Large to giant hail will be probable with any
    supercell. The tornado risk will likely focus for a few hours
    during the early evening near a residual outflow boundary draped
    over parts of the Watch area.

    The tornado watch area is approximately along and 60 statute miles
    east and west of a line from 30 miles northeast of Guymon OK to 60
    miles southeast of Lubbock TX. For a complete depiction of the watch
    see the associated watch outline update (WOUS64 KWNS WOU7).

    PRECAUTIONARY/PREPAREDNESS ACTIONS…

    REMEMBER…A Tornado Watch means conditions are favorable for
    tornadoes and severe thunderstorms in and close to the watch
    area. Persons in these areas should be on the lookout for
    threatening weather conditions and listen for later statements
    and possible warnings.

    &&

    OTHER WATCH INFORMATION…CONTINUE…WW 166…

    AVIATION…Tornadoes and a few severe thunderstorms with hail
    surface and aloft to 4 inches. Extreme turbulence and surface wind
    gusts to 60 knots. A few cumulonimbi with maximum tops to 550. Mean
    storm motion vector 29015.

    …Smith

    SEL7

    URGENT – IMMEDIATE BROADCAST REQUESTED
    Tornado Watch Number 167
    NWS Storm Prediction Center Norman OK
    335 PM CDT Thu Apr 24 2025

    The NWS Storm Prediction Center has issued a

    * Tornado Watch for portions of
    Oklahoma Panhandle
    Texas Panhandle and South Plains

    * Effective this Thursday afternoon and evening from 335 PM until
    1100 PM CDT.

    * Primary threats include…
    A couple tornadoes possible
    Scattered large hail and isolated very large hail events to 4
    inches in diameter likely
    Isolated damaging wind gusts to 70 mph possible

    SUMMARY…Widely scattered thunderstorms are forecast to rapidly
    develop this afternoon into the early evening. Environmental shear
    and buoyancy combinations strongly favor intense, discrete
    supercells. Large to giant hail will be probable with any
    supercell. The tornado risk will likely focus for a few hours
    during the early evening near a residual outflow boundary draped
    over parts of the Watch area.

    The tornado watch area is approximately along and 60 statute miles
    east and west of a line from 30 miles northeast of Guymon OK to 60
    miles southeast of Lubbock TX. For a complete depiction of the watch
    see the associated watch outline update (WOUS64 KWNS WOU7).

    PRECAUTIONARY/PREPAREDNESS ACTIONS…

    REMEMBER…A Tornado Watch means conditions are favorable for
    tornadoes and severe thunderstorms in and close to the watch
    area. Persons in these areas should be on the lookout for
    threatening weather conditions and listen for later statements
    and possible warnings.

    &&

    OTHER WATCH INFORMATION…CONTINUE…WW 166…

    AVIATION…Tornadoes and a few severe thunderstorms with hail
    surface and aloft to 4 inches. Extreme turbulence and surface wind
    gusts to 60 knots. A few cumulonimbi with maximum tops to 550. Mean
    storm motion vector 29015.

    …Smith

    Note: The Aviation Watch (SAW) product is an approximation to the watch area. The actual watch is depicted by the shaded areas.
    SAW7
    WW 167 TORNADO OK TX 242035Z – 250400Z
    AXIS..60 STATUTE MILES EAST AND WEST OF LINE..
    30NE GUY/GUYMON OK/ – 60SE LBB/LUBBOCK TX/
    ..AVIATION COORDS.. 50NM E/W /8WSW LBL – 57SE LBB/
    HAIL SURFACE AND ALOFT..4 INCHES. WIND GUSTS..60 KNOTS.
    MAX TOPS TO 550. MEAN STORM MOTION VECTOR 29015.

    LAT…LON 36980003 33050005 33050212 36980220

    THIS IS AN APPROXIMATION TO THE WATCH AREA. FOR A
    COMPLETE DEPICTION OF THE WATCH SEE WOUS64 KWNS
    FOR WOU7.

    Watch 167 Status Report Message has not been issued yet.

    Note:  Click for Complete Product Text.Tornadoes

    Probability of 2 or more tornadoes

    Mod (40%)

    Probability of 1 or more strong (EF2-EF5) tornadoes

    Low (20%)

    Wind

    Probability of 10 or more severe wind events

    Mod (30%)

    Probability of 1 or more wind events > 65 knots

    Low (20%)

    Hail

    Probability of 10 or more severe hail events

    High (70%)

    Probability of 1 or more hailstones > 2 inches

    High (70%)

    Combined Severe Hail/Wind

    Probability of 6 or more combined severe hail/wind events

    High (>95%)

    For each watch, probabilities for particular events inside the watch (listed above in each table) are determined by the issuing forecaster. The “Low” category contains probability values ranging from less than 2% to 20% (EF2-EF5 tornadoes), less than 5% to 20% (all other probabilities), “Moderate” from 30% to 60%, and “High” from 70% to greater than 95%. High values are bolded and lighter in color to provide awareness of an increased threat for a particular event.

    MIL OSI USA News

  • MIL-OSI USA: SPC Severe Thunderstorm Watch 168

    Source: US National Oceanic and Atmospheric Administration

    Note:  The expiration time in the watch graphic is amended if the watch is replaced, cancelled or extended.Note: Click for Watch Status Reports.
    SEL8

    URGENT – IMMEDIATE BROADCAST REQUESTED
    Severe Thunderstorm Watch Number 168
    NWS Storm Prediction Center Norman OK
    400 PM CDT Thu Apr 24 2025

    The NWS Storm Prediction Center has issued a

    * Severe Thunderstorm Watch for portions of
    Far Southeast New Mexico
    West Texas

    * Effective this Thursday afternoon and evening from 400 PM until
    1000 PM CDT.

    * Primary threats include…
    Scattered large hail and isolated very large hail events to 3
    inches in diameter possible
    Scattered damaging wind gusts to 70 mph possible

    SUMMARY…Isolated thunderstorms are forecast to develop through the
    late afternoon and early evening. The stronger storms will likely
    become supercellular and pose mainly a threat for large to very
    large hail.

    The severe thunderstorm watch area is approximately along and 70
    statute miles east and west of a line from 65 miles north northwest
    of Big Spring TX to 25 miles west southwest of Dryden TX. For a
    complete depiction of the watch see the associated watch outline
    update (WOUS64 KWNS WOU8).

    PRECAUTIONARY/PREPAREDNESS ACTIONS…

    REMEMBER…A Severe Thunderstorm Watch means conditions are
    favorable for severe thunderstorms in and close to the watch area.
    Persons in these areas should be on the lookout for threatening
    weather conditions and listen for later statements and possible
    warnings. Severe thunderstorms can and occasionally do produce
    tornadoes.

    &&

    OTHER WATCH INFORMATION…CONTINUE…WW 166…WW 167…

    AVIATION…A few severe thunderstorms with hail surface and aloft to
    3 inches. Extreme turbulence and surface wind gusts to 60 knots. A
    few cumulonimbi with maximum tops to 500. Mean storm motion vector
    31015.

    …Smith

    Note: The Aviation Watch (SAW) product is an approximation to the watch area. The actual watch is depicted by the shaded areas.
    SAW8
    WW 168 SEVERE TSTM NM TX 242100Z – 250300Z
    AXIS..70 STATUTE MILES EAST AND WEST OF LINE..
    65NNW BGS/BIG SPRING TX/ – 25WSW 6R6/DRYDEN TX/
    ..AVIATION COORDS.. 60NM E/W /37S LBB – 66SSE FST/
    HAIL SURFACE AND ALOFT..3 INCHES. WIND GUSTS..60 KNOTS.
    MAX TOPS TO 500. MEAN STORM MOTION VECTOR 31015.

    LAT…LON 33080072 29900143 29900376 33080314

    THIS IS AN APPROXIMATION TO THE WATCH AREA. FOR A
    COMPLETE DEPICTION OF THE WATCH SEE WOUS64 KWNS
    FOR WOU8.

    Watch 168 Status Report Message has not been issued yet.

    Note:  Click for Complete Product Text.Tornadoes

    Probability of 2 or more tornadoes

    Low (10%)

    Probability of 1 or more strong (EF2-EF5) tornadoes

    Low ( 65 knots

    Low (20%)

    Hail

    Probability of 10 or more severe hail events

    Mod (40%)

    Probability of 1 or more hailstones > 2 inches

    Mod (40%)

    Combined Severe Hail/Wind

    Probability of 6 or more combined severe hail/wind events

    High (70%)

    For each watch, probabilities for particular events inside the watch (listed above in each table) are determined by the issuing forecaster. The “Low” category contains probability values ranging from less than 2% to 20% (EF2-EF5 tornadoes), less than 5% to 20% (all other probabilities), “Moderate” from 30% to 60%, and “High” from 70% to greater than 95%. High values are bolded and lighter in color to provide awareness of an increased threat for a particular event.

    MIL OSI USA News

  • MIL-OSI USA: Commissioner Kristin N. Johnson: Africa Fintech Summit 2025 Keynote Remarks

    Source: US Commodity Futures Trading Commission

    It is a privilege to join you today to kick-off the Africa Fintech Summit of 2025. Twice a year this convening serves as one of the largest gatherings of Africa’s Fintech Community—connecting entrepreneurs, investors, and regulators during the International Monetary Fund/World Bank spring meeting week in Washington, DC. and in the fall in Africa. My tremendous thanks to the organizers and hosts. 
    As you arrived this morning, I am sure you were able to appreciate the perfect spring weather and blooming cherry blossoms that we ordered for you this week. There are few places in DC that are lovelier this time of year than where we sit, here in Georgetown. 
    In my career, I have learned about entrepreneurship from mentors and clients at the world’s largest investment banks, small start-ups, and family-founded businesses. My family’s history as entrepreneurs and informal investors in community small businesses dates to the mid-1800s here in the United States. Perhaps one day, I will have the opportunity to continue this tradition and help fund the businesses of innovative founders. 
    Today, I am a Commissioner at the U.S. Commodity Futures Trading Commission, nominated by former President Biden and unanimously confirmed by the United States Senate.[1] At the CFTC, we oversee U.S. markets and market participants for derivatives contracts that reference commodities. According to a Bank for International Settlements report, the notional value of the global derivatives market is over $730 trillion.[2] In recent years, courts and Congress have indicated intentions to expand the CFTC’s mandate to include oversight of emerging technologies, including distributed digital ledger technologies commonly referred to as blockchain technologies, digital assets, including cryptocurrencies, and certain platforms within the assemblage of technologies referred to as artificial intelligence. 
    African Fintech Firms Inspire a World of Innovation
    African fintech firms demonstrate curiosity, creativity, and driven commitment to deliver first-rate fintech products and services to consumers and businesses on the continent and around the world.   
    During my time as a CFTC Commissioner, I have traveled to South Africa, Kenya, Zambia, and Ghana to meet with fintech entrepreneurs. I have witnessed first-hand the exceptional creativity and curiosity that drives African fintech entrepreneurs. As you well know from CNBC’s announcement last year, six African fintech firms are among the world’s top fintech companies PalmPay, Flutterwave, Kuda, MTN, Piggvest, and Yoco.[3] African fintech firms have emerged from every corner of the continent. 
    In various stages of development—from incubators to early stages (pre-seed) capital raising to joint ventures with Google, Microsoft, and AWS—African fintech firms enhance financial accessibility, inclusivity, and consumer empowerment. These businesses integrate the most advanced technologies available, reflect global thought leadership in the potential for emerging technologies to reshape access and opportunities for both consumer and commercial finance, and create pathways for inclusion that have inspired creative consumer finance solutions around the globe.
    As you know well, the recipe for entrepreneurial success begins with a great idea. Yet, building opportunities in fast-moving, high-tech markets requires a number of critical inputs as well as conditions to facilitate growth and development. Entrepreneurs or innovators, funders or sources of capital, and, yes, regulators all have an important role to play in promoting responsible innovation and growth. It has been my pleasure to collaborate with regulators around the continent as they consider ways to spur innovation and growth. Last year, during my keynote remarks at the South African Reserve Bank Fintech Summit in Johannesburg[4] and at the beginning of this year in Ghana, I emphasized the opportunities for African fintech firms to innovate using AI in consumer finance. 
    The Rise of AI in Fintech
    As I noted in my opening remarks at The South African Reserve Bank Fintech Summit last year,
    While our markets have long relied upon AI for a variety of risk management and predictive pricing functions, we are witnessing rapid developments beyond reinforcement learning and neural networks in generative AI.
    Increasingly, diverse industries and sectors of our economy identify opportunities to integrate aspects of the assemblage of technologies that we commonly describe as AI or AI technologies. AI enables doctors to diagnose and map diseases earlier, faster, and with greater accuracy than ever before in the history of medicine. Farmers who cultivate crops that feed [] nation[s] may integrate AI to better manage access to vital resources such as freshwater, enabling more efficient irrigation, fertilization, and crop rotation leading to more sustainable farming.
    In our markets, AI offers similar efficiencies for faster trade execution and settlement, more accurate pricing prediction, and more precise risk management oversight. Markets have witnessed increasing adoption of AI including AI-driven investment advising, trade execution, risk management, and market surveillance.[5]
    Financial services firms are fully embracing the powers of AI, making increasingly large investments in infrastructure to support AI and expanding the roster of use cases. One economist estimates that investments in AI may reach $97 billion by 2027.[6] 
    Notable Challenges for Inclusion 
    As AI adoption expands across markets, however, there are a number of notable challenges. For many, the costs of relying on large language models or agentic AI will place these technologies beyond the resources of their businesses. 
    Accessibility and Inclusivity Challenges for Global Competitors 
    The high cost of developing advanced AI technologies and the infrastructure to support their use poses significant accessibility and inclusivity barriers, particularly disadvantaging smaller competitors and institutions in emerging markets. These barriers limit the widespread adoption of AI-driven financial solutions, which can disproportionately affect underserved and economically disadvantaged populations who could most benefit from improved financial services. This can make it exceptionally hard for emerging companies to incorporate AI into their services if the infrastructure does not already exist. To that end, we are seeing private companies form partnerships to make necessary investments to scale up AI capabilities in Africa, like Cassava Technologies, a global technology leader, and their partnership with Nvidia to develop Africa’s first AI factory in South Africa.[7] 
    At the Commission, we have also explored regulatory frameworks addressing AI’s role in financial markets through an ongoing conversation with market participants.[8] The Commission has acknowledged the potential for AI-driven systems to impact consumer protection indirectly through enhanced market integrity and risk management protocols, but it has also acknowledged the dangers that consumers can face.[9] 
    I have repeatedly emphasized the need to establish robust principles-based regulatory frameworks at the Commission to combat consumer-facing issues like AI-enabled market manipulation and fraud, through my repeated emphasis on the need to promote the explainability of AI models, the implementation of data controls and measures to address bias, clear governance frameworks for accountability and testing, and the establishment of an interagency task force and an AI Fraud Task Force to tackle fraud full force.[10] In particular, firms implementing this technology in consumer-facing ways must adhere to existing laws on fairness, transparency, and privacy.
    The Financial Stability Board (FSB) has highlighted the importance of international collaboration in setting standards for responsible AI use, advocating for coordinated frameworks that ensure consumer protection, fairness, and transparency in AI-powered financial services globally.[11] International collaboration amongst regulators can aid in streamlining the growing body of international standards which can be difficult to navigate and present a significant barrier to emerging companies. Meanwhile, countries like Singapore have also made significant strides in regulating and supporting consumer-facing AI applications through initiatives like the Monetary Authority of Singapore’s regulatory sandbox framework, allowing fintech startups to test AI-driven solutions in controlled environments, balancing innovation with consumer protection.[12]
    Africa’s Embrace of AI to Promote Accessibility, Consumer Interaction, and Further Innovation
    Through strategic partnerships between AI startups, larger corporations, and governmental agencies, increased access to advanced AI technologies and traditional financial services have been more readily obtainable. Sitoyo Lopokoiyit, CEO and founder of M-Pesa, and others demonstrate how strategic partnerships, cost-effective approaches, and mobile-first innovations can significantly reduce barriers, enabling broader AI adoption and the growth of consumer inclusive financial services. M-Pesa, a mobile money services platform, which hosts millions of customers and facilitates billions in transactions per year, may be used to deposit money into an account, “store it on … cell phones, send balances using PINs secured by SMS text messages, and enable buyers and sellers of goods to redeem and access purchases as well as deposits for regular money…. M-Pesa represents the potential to develop platforms that give customers access to banking services, reduce transaction costs, and otherwise overcome the endemic frictions that have challenged access to financial services for millions.”[13] 
    M-Pesa’s business model is particularly interesting because of how effectively it has created access for individuals who have historically lacked access to basic financial services. I previously traveled to Kenya to meet with the CEO and President of M-Pesa, as well as central bankers, the governor of the Central Bank of Kenya, and deputy governors and market regulators, to discuss the uptick in retail market participation and the considerations for consumer protection that come with the increased accessibility to financial markets. 
    Conclusion
    Continued partnerships between African fintech innovators, African regulators, and U.S. regulators and institutions can help foster shared growth and technological advancement for both parties. Such collaborations offer significant opportunities, combining African innovation in financial inclusion and mobile technologies with U.S. strengths in regulatory frameworks, research, and infrastructure. These synergistic relationships can enhance global fintech capabilities, drive inclusive economic growth, and promote greater financial stability and consumer protection worldwide.
    Conferences like the one we are participating in today are of vital importance to the notion of collaboration. The issues discussed, the connections made, and the lessons shared here today can help propel markets forward in a way that not only protects the consumer but also empowers the consumer.
    Thank you again for allowing me to join you today. I look forward to hearing from each of the panels and speakers and continuing to develop great relationships with the leading voices in fintech in Africa.

    [1] The thoughts and perspectives that I share with you today are my own; they are not the views and perspectives of my fellow Commissioners, the Commission, or the staff of the CFTC.

    MIL OSI USA News

  • MIL-OSI: MidWestOne Financial Group, Inc. Reports Financial Results For the First Quarter of 2025

    Source: GlobeNewswire (MIL-OSI)

    IOWA CITY, Iowa, April 24, 2025 (GLOBE NEWSWIRE) — MidWestOne Financial Group, Inc. (Nasdaq: MOFG) (“we,” “our,” or the “Company”) today reported results for the first quarter of 2025.

    First Quarter 2025 Summary1

    • Net income of $15.1 million, or $0.73 per diluted common share.
      • Net interest margin (tax equivalent) was 3.44%;2 core net interest margin expanded 10 basis points (“bps”) to 3.36%.2
      • Noninterest expenses were $36.3 million; efficiency ratio was 59.38%.2
      • Return on average assets of 1.00%.
    • Criticized loans ratio improved 54 bps to 5.47%; nonperforming assets ratio improved 7 bps to 0.33%.
    • Tangible book value per share of $23.36,2 an increase of 4.4%.
    • Common equity tier 1 (“CET1”) capital ratio improved 24 bps to 10.97%.

    CEO Commentary

    Charles (Chip) Reeves, Chief Executive Officer of the Company, commented, “We are pleased with the continued execution of our strategic plan initiatives despite a more uncertain economic environment. Our return on average assets eclipsed 1% for the second straight quarter driven by disciplined balance sheet management, core net interest margin expansion of 10 bps2 and solid expense control. Loan growth was flat in the quarter, somewhat softer than anticipated, due to pay-offs and latter quarter market volatility. The majority of our asset quality metrics improved significantly, led by reductions in nonperforming assets and criticized loans. Net charge-offs increased to 29 basis points, with the majority of the increase due to a partial charge-off on a previously reserved CRE loan as we prepare for resolution. Driven by earnings and lower accumulated other comprehensive loss, tangible book value per share increased 4.4% to $23.362 and the CET1 ratio grew to 10.97%, edging closer to our target range of 11.0%-11.50%.

    Thank you to our team members who continued to execute well and serve our customers amidst market volatility. We are pleased with the transformation of our company and our solid foundation of increased capital, earnings power, asset quality, and a premium core deposit franchise position us well for uncertain economic times and the remainder of 2025.”

    1 First Quarter Summary compares to the fourth quarter of 2024 (the “linked quarter”) unless noted.
    2 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

        As of or for the quarter ended
    (Dollars in thousands, except per share amounts and as noted)   March 31,   December 31,   March 31,
        2025       2024       2024  
    Financial Results            
    Revenue   $ 57,575     $ 59,775     $ 44,481  
    Credit loss expense     1,687       1,291       4,689  
    Noninterest expense     36,293       37,372       35,565  
    Net income     15,138       16,330       3,269  
    Adjusted earnings(3)     15,301       16,112       4,504  
    Per Common Share            
    Diluted earnings per share   $ 0.73     $ 0.78     $ 0.21  
    Adjusted earnings per share(3)     0.73       0.77       0.29  
    Book value     27.85       26.94       33.53  
    Tangible book value(3)     23.36       22.37       27.14  
    Balance Sheet & Credit Quality            
    Loans In millions   $ 4,304.2     $ 4,315.6     $ 4,414.6  
    Investment securities In millions     1,305.5       1,328.4       1,862.2  
    Deposits In millions     5,489.1       5,478.0       5,585.2  
    Net loan charge-offs In millions     3.1       0.7       0.2  
    Allowance for credit losses ratio     1.25 %     1.28 %     1.27 %
    Selected Ratios            
    Return on average assets     1.00 %     1.03 %     0.20 %
    Net interest margin, tax equivalent(3)     3.44 %     3.43 %     2.33 %
    Return on average equity     10.74 %     11.53 %     2.49 %
    Return on average tangible equity(3)     13.75 %     14.80 %     4.18 %
    Efficiency ratio(3)     59.38 %     59.06 %     71.28 %
                             

    REVENUE REVIEW

    Revenue               Change   Change
                  1Q25 vs   1Q25 vs
    (Dollars in thousands)   1Q25   4Q24   1Q24   4Q24   1Q24
    Net interest income   $           47,439   $         48,938   $        34,731   (3)%   37 %
    Noninterest income                 10,136               10,837                9,750   (6)%   4 %
    Total revenue, net of interest expense   $           57,575   $         59,775   $        44,481   (4)%   29 %
                                 

    Total revenue for the first quarter of 2025 decreased $2.2 million from the fourth quarter of 2024 due to lower net interest income and noninterest income during the quarter. When compared to the first quarter of 2024, total revenue increased $13.1 million, due to higher net interest income and higher noninterest income.

    Net interest income of $47.4 million for the first quarter of 2025 decreased $1.5 million from the fourth quarter of 2024, due to lower earning asset volumes and yields, partially offset by lower funding volumes and costs. When compared to the first quarter of 2024, net interest income increased $12.7 million, due to higher earning asset yields and lower funding volumes and costs, partially offset by lower earning asset volumes.

    The Company’s tax equivalent net interest margin was 3.44%3 in the first quarter of 2025, compared to 3.43%3 in the fourth quarter of 2024, driven by lower funding costs, partially offset by a decline in earning asset yields. Interest bearing liability costs during the first quarter of 2025 decreased 11 bps to 2.41%, due to reductions of short-term borrowings, interest bearing deposits, and long-term debt costs of 78 bps, 10 bps, and 7 bps, to 3.75%, 2.31%, and 6.41%, respectively, from the fourth quarter of 2024.

    The Company’s tax equivalent net interest margin was 3.44%3 in the first quarter of 2025, compared to 2.33%3 in the first quarter of 2024, driven by higher earning asset yields and lower interest-bearing liability costs. Total earning assets yield increased 79 bps from the first quarter of 2024, primarily due to increases of 192 bps and 20 bps in total investment securities and loan yields, respectively. Interest bearing liability costs decreased 34 bps to 2.41%, due to short-term borrowing costs of 3.75%, long-term debt costs of 6.41%, and interest-bearing deposit costs of 2.31%, which decreased 107 bps, 45 bps, and 14 bps, respectively, from the first quarter of 2024.

    3 Non-GAAP measure. See the separate Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.

    Noninterest Income             Change   Change
                1Q25 vs   1Q25 vs
    (In thousands) 1Q25   4Q24   1Q24   4Q24   1Q24
    Investment services and trust activities $ 3,544     $ 3,779   $ 3,503     (6)%   1 %
    Service charges and fees   2,131       2,159     2,144     (1)%   (1)%
    Card revenue   1,744       1,833     1,943     (5)%   (10)%
    Loan revenue   1,194       1,841     856     (35)%   39 %
    Bank-owned life insurance   1,057       719     660     47 %   60 %
    Investment securities gains, net   33       161     36     (80)%   (8)%
    Other   433       345     608     26 %   (29)%
    Total noninterest income $ 10,136     $ 10,837   $ 9,750     (6)%   4 %
                       
    MSR adjustment (included above in Loan revenue) $ (213 )   $ 164   $ (368 )   (230)%   (42)%
                                 

    Noninterest income for the first quarter of 2025 decreased $0.7 million from the linked quarter, primarily due to declines of $0.6 million and $0.2 million in loan revenue and investment services and trust activities revenue, respectively. The decrease in loan revenue was reflective of an unfavorable change in the fair value of our mortgage servicing rights of $0.4 million, coupled with a decrease in Small Business Administration (“SBA”) gain on sale revenue of $0.3 million. The decrease in investment services and trust activities revenue was driven by a decline in assets under administration due to market volatility. Partially offsetting these decreases was an increase of $0.3 million in bank-owned life insurance revenue, due primarily to $0.4 million of death benefit recognized in the first quarter of 2025.

    Noninterest income for the first quarter of 2025 increased $0.4 million from the first quarter of 2024 due primarily to increases of $0.4 million and $0.3 million in bank-owned life insurance and loan revenue, respectively. The bank-owned life insurance increase was due primarily to the death benefit noted above. The increase in loan revenue was due primarily to the mortgage servicing right valuation adjustment, coupled with higher SBA gain on sale revenue and other loan income. Partially offsetting these increases were decreases of $0.2 million in each of card revenue and other revenue.

    EXPENSE REVIEW

    Noninterest Expense             Change   Change
                1Q25 vs   1Q25 vs
    (In thousands) 1Q25   4Q24   1Q24   4Q24   1Q24
    Compensation and employee benefits $ 21,212   $ 20,684   $ 20,930   3 %   1 %
    Occupancy expense of premises, net   2,588     2,772     2,813   (7)%   (8)%
    Equipment   2,426     2,688     2,600   (10)%   (7)%
    Legal and professional   2,226     2,534     2,059   (12)%   8 %
    Data processing   1,698     1,719     1,360   (1)%   25 %
    Marketing   552     793     598   (30)%   (8)%
    Amortization of intangibles   1,408     1,449     1,637   (3)%   (14)%
    FDIC insurance   917     980     942   (6)%   (3)%
    Communications   159     154     196   3 %   (19)%
    Foreclosed assets, net   74     56     358   32 %   (79)%
    Other   3,033     3,543     2,072   (14)%   46 %
         Total noninterest expense $ 36,293   $ 37,372   $ 35,565   (3)%   2 %
                               
    Merger-related Expenses          
             
    (In thousands) 1Q25   4Q24   1Q24
    Compensation and employee benefits $                 —   $                 —   $               241
    Occupancy expense of premises, net                     —                       —                     152
    Equipment                     —                       21                     149
    Legal and professional                     40                       —                     573
    Data processing                     —                       10                       61
    Marketing                     —                       —                       32
    Communications                     —                       —                         1
    Other                     —                       —                     105
    Total merger-related expenses $                 40   $                 31   $            1,314
                     

    Noninterest expense for the first quarter of 2025 decreased $1.1 million from the linked quarter, primarily due to decreases in other noninterest expense, legal and professional, equipment, and occupancy expense of premises, net, of $0.5 million, $0.3 million, $0.3 million, and $0.2 million, respectively. The primary drivers of the decrease in other noninterest expense were declines in fraud loss expense of $0.3 million and customer deposit costs of $0.1 million. The $0.3 million decrease in legal and professional expense was primarily driven by lower litigation-related legal costs. The decrease in equipment of $0.3 million was primarily driven by fewer small equipment purchases, while the decrease in occupancy expense of premises, net was due primarily to lower property tax expense. Partially offsetting these decreases was an increase of $0.5 million in compensation and employee benefits which reflected an increase in equity compensation and payroll tax expenses.

    Noninterest expense for the first quarter of 2025 increased $0.7 million from the first quarter of 2024 primarily due to increases in other noninterest expense, data processing, and compensation and employee benefits of $1.0 million, $0.3 million and $0.3 million, respectively. The increase in other noninterest expense was due primarily to customer deposit costs while the increase in data processing was driven core banking system costs. The increase in compensation and employee benefits was primarily driven by medical benefits expenses, wages expense, and incentive expense due to improved performance. Partially offsetting these identified increases was a decline of $1.3 million in merger-related expenses.

    The Company’s effective tax rate was 22.7% in the first quarter of 2025 and the linked quarter. The effective income tax rate for the full year 2025 is expected to be 22-23%.

    BALANCE SHEET REVIEW

    Total assets were $6.25 billion at March 31, 2025, compared to $6.24 billion at December 31, 2024 and $6.75 billion at March 31, 2024. The increase from December 31, 2024 was primarily due to higher cash balances, partially offset by lower securities balances. Compared to March 31, 2024, the decrease was primarily driven by the sale of assets associated with our Florida banking operations in the second quarter of 2024 coupled with the pay-off of Bank Term Funding Program (“BTFP”) borrowings with proceeds received from securities sales transactions in the fourth quarter of 2024.

    Loans Held for Investment March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Commercial and industrial $1,140,138   26.5 % $1,126,813   26.1 % $1,105,718   25.0 %
    Agricultural 131,409   3.1   119,051   2.8   113,029   2.6  
    Commercial real estate                        
    Construction and development 293,280   6.8   324,896   7.5   403,571   9.1  
    Farmland 180,633   4.2   182,460   4.2   184,109   4.2  
    Multifamily 421,204   9.8   423,157   9.8   409,504   9.3  
    Other 1,425,062   33.0   1,414,168   32.7   1,440,645   32.7  
    Total commercial real estate 2,320,179   53.8   2,344,681   54.2   2,437,829   55.3  
    Residential real estate                        
    One-to-four family first liens 471,688   11.0   477,150   11.1   495,408   11.2  
    One-to-four family junior liens 182,346   4.2   179,232   4.2   182,001   4.1  
    Total residential real estate 654,034   15.2   656,382   15.3   677,409   15.3  
    Consumer 58,424   1.4   68,700   1.6   80,661   1.8  
    Loans held for investment, net of unearned income $4,304,184   100.0 % $4,315,627   100.0 % $4,414,646   100.0 %
                             
    Total commitments to extend credit $1,080,300       $1,080,737       $1,230,612      

    Loans held for investment, net of unearned income, decreased $11.4 million, or 0.3%, to $4.30 billion from $4.32 billion at December 31, 2024, primarily due to the reclassification of $11.0 million of credit card receivables to loans held for sale in the first quarter of 2025. Management expects the credit card portfolio sale to close in the fourth quarter of 2025.

    Loans held for investment, net of unearned income, decreased $110.5 million, or 2.5%, to $4.30 billion from $4.41 billion at March 31, 2024. The decrease from the first quarter of 2024 was driven primarily by the sale of loans associated with our Florida banking operations in the second quarter of 2024, partially offset by organic loan growth and higher line of credit usage.

    Investment Securities March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Available for sale $1,305,530   100.0 % $1,328,433   100.0 % $797,230   42.8 %
    Held to maturity   %   % 1,064,939   57.2 %
    Total investment securities $1,305,530       $1,328,433       $1,862,169      

    Investment securities at March 31, 2025 were $1.31 billion, decreasing $22.9 million from December 31, 2024 and decreasing $556.6 million from March 31, 2024. The decrease from the fourth quarter of 2024 was primarily due to principal cash flows received from scheduled payments, calls, and maturities. The decrease from the first quarter of 2024 stemmed primarily from the sale of debt securities in connection with a balance sheet repositioning, as well as principal cash flows received from scheduled payments, calls, and maturities. 

    Deposits March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Noninterest bearing deposits $903,714   16.5 % $951,423   17.4 % $920,764   16.5 %
    Interest checking deposits 1,283,328   23.3   1,258,191   22.9   1,349,823   24.2  
    Money market deposits 1,002,066   18.3   1,053,988   19.2   1,122,717   20.1  
    Savings deposits 877,348   16.0   820,549   15.0   728,276   13.0  
    Time deposits of $250 and under 818,012   14.9   826,793   15.1   787,851   14.1  
    Total core deposits 4,884,468   89.0   4,910,944   89.6   4,909,431   87.9  
    Brokered time deposits 200,000   3.6   200,000   3.7   205,000   3.7  
    Time deposits over $250 404,674   7.4   367,038   6.7   470,805   8.4  
    Total deposits $5,489,142   100.0 % $5,477,982   100.0 % $5,585,236   100.0 %

    Total deposits increased $11.2 million, or 0.2%, to $5.49 billion, from $5.48 billion at December 31, 2024. Total deposits decreased $96.1 million, or 1.7%, from $5.59 billion at March 31, 2024, primarily due to the deposits transferred in the sale of our Florida banking operations, partially offset by organic deposit growth in our targeted metropolitan markets.

    Borrowed Funds March 31, 2025   December 31, 2024   March 31, 2024  
    (Dollars in thousands) Balance   % of Total   Balance   % of Total   Balance   % of Total  
    Short-term borrowings $1,482   1.3 % $3,186   2.7 % $422,988   77.6 %
    Long-term debt 111,398   98.7 % 113,376   97.3 % 122,066   22.4 %
    Total borrowed funds $112,880       $116,562       $545,054      

    Borrowed funds were $112.9 million at March 31, 2025, a decrease of $3.7 million from December 31, 2024 and a decrease of $432.2 million from March 31, 2024. The decrease compared to the linked quarter was due to lower customer repurchase agreement volumes and scheduled payments on long-term debt. The decrease compared to March 31, 2024 was primarily due to the pay-off of $405.0 million of BTFP borrowings and $13.0 million of a revolving credit facility, as well as scheduled payments on long-term debt.

    Capital March 31,   December 31,   March 31,
    (Dollars in thousands) 2025 (1)     2024       2024  
    Total shareholders’ equity $ 579,625     $ 559,696     $ 528,040  
    Accumulated other comprehensive loss   (63,098 )     (72,762 )     (60,804 )
    MidWestOneFinancial Group, Inc. Consolidated          
    Tier 1 leverage to average assets ratio   9.50 %     9.15 %     8.16 %
    Common equity tier 1 capital to risk-weighted assets ratio   10.97 %     10.73 %     8.98 %
    Tier 1 capital to risk-weighted assets ratio   11.84 %     11.59 %     9.75 %
    Total capital to risk-weighted assets ratio   14.34 %     14.07 %     11.97 %
    MidWestOneBank          
    Tier 1 leverage to average assets ratio   10.42 %     10.12 %     9.36 %
    Common equity tier 1 capital to risk-weighted assets ratio   13.02 %     12.86 %     11.20 %
    Tier 1 capital to risk-weighted assets ratio   13.02 %     12.86 %     11.20 %
    Total capital to risk-weighted assets ratio   14.21 %     14.02 %     12.25 %
    (1) Regulatory capital ratios for March 31, 2025 are preliminary          
               

    Total shareholders’ equity at March 31, 2025 increased $19.9 million from December 31, 2024, driven primarily by an increase in retained earnings and a decrease in accumulated other comprehensive loss. Total shareholders’ equity at March 31, 2025 increased $51.6 million from March 31, 2024, primarily due to increases in common stock and additional pain-in-capital stemming from the common equity capital raise in the third quarter of 2024, partially offset by a decrease in retained earnings.

    On April 22, 2025, the Board of Directors of the Company declared a cash dividend of $0.2425 per common share. The dividend is payable June 16, 2025, to shareholders of record at the close of business on June 2, 2025.

    No common shares were repurchased by the Company during the period December 31, 2024 through March 31, 2025 or for the subsequent period through April 24, 2025. The current share repurchase program allows for the repurchase of up to $15.0 million of the Company’s common shares. As of March 31, 2025, $15.0 million remained available under this program.

    CREDIT QUALITY REVIEW

    Credit Quality As of or For the Three Months Ended
    March 31,   December 31,   March 31,
    (Dollars in thousands)   2025       2024       2024  
    Credit loss expense related to loans $ 1,787     $ 1,891     $ 4,589  
    Net charge-offs   3,087       691       189  
    Allowance for credit losses   53,900       55,200       55,900  
    Pass $ 4,068,707     $ 4,056,361     $ 4,098,102  
    Special Mention   121,494       148,462       152,604  
    Classified   113,983       110,804       163,940  
    Criticized   235,477       259,266       316,544  
    Loans greater than 30 days past due and accruing $ 6,119     $ 9,378     $ 8,772  
    Nonperforming loans $ 17,470     $ 21,847     $ 29,267  
    Nonperforming assets   20,889       25,184       33,164  
    Net charge-off ratio(1)   0.29 %     0.06 %     0.02 %
    Classified loans ratio(2)   2.65 %     2.57 %     3.71 %
    Criticized loans ratio(3)   5.47 %     6.01 %     7.17 %
    Nonperforming loans ratio(4)   0.41 %     0.51 %     0.66 %
    Nonperforming assets ratio(5)   0.33 %     0.40 %     0.49 %
    Allowance for credit losses ratio(6)   1.25 %     1.28 %     1.27 %
    Allowance for credit losses to nonaccrual loans ratio(7)   309.47 %     254.32 %     197.53 %
    (1) Net charge-off ratio is calculated as annualized net charge-offs divided by the sum of average loans held for investment, net of unearned income and average loans held for sale, during the period.
    (2) Classified loans ratio is calculated as classified loans divided by loans held for investment, net of unearned income, at the end of the period.
    (3) Criticized loans ratio is calculated as criticized loans divided by loans held for investment, net of unearned income, at the end of the period.
    (4) Nonperforming loans ratio is calculated as nonperforming loans divided by loans held for investment, net of unearned income, at the end of the period.
    (5) Nonperforming assets ratio is calculated as nonperforming assets divided by total assets at the end of the period.
    (6) Allowance for credit losses ratio is calculated as allowance for credit losses divided by loans held for investment, net of unearned income, at the end of the period.
    (7) Allowance for credit losses to nonaccrual loans ratio is calculated as allowance for credit losses divided by nonaccrual loans at the end of the period.
     

    Nonperforming loans and nonperforming assets ratios improved 10 bps and 7 bps, to 0.41% and 0.33%, respectively, compared to the linked quarter. In addition, special mention loan balances decreased $27.0 million, or 18%, while classified loan balances remained relatively stable with an increase of $3.2 million, or 3%. When compared to the same period of the prior year, the nonperforming loans and nonperforming asset ratios improved 25 bps and 16 bps, respectively, while the classified loan ratio improved 106 bps. Special mention loan balances decreased $31.1 million, or 20%. The net charge-off ratio increased 23 bps from the linked quarter and 27 bps from the same period in the prior year.

    As of March 31, 2025, the allowance for credit losses was $53.9 million and the allowance for credit losses ratio was 1.25%, compared with $55.2 million and 1.28%, respectively, at December 31, 2024. Credit loss expense of $1.7 million in the first quarter of 2025 primarily reflected additional reserve on pooled loans, offset by a reduction of $0.1 million in the reserve for unfunded loan commitments.

    Nonperforming Loans Roll Forward Nonaccrual   90+ Days Past Due
    & Still Accruing
      Total
    (Dollars in thousands)    
    Balance at December 31, 2024 $21,705   $142   $21,847
    Loans placed on nonaccrual or 90+ days past due & still accruing 3,121   225   3,346
    Proceeds related to repayment or sale (4,158)     (4,158)
    Loans returned to accrual status or no longer past due (336)   (49)   (385)
    Charge-offs (2,774)   (259)   (3,033)
    Transfers to foreclosed assets (141)     (141)
    Transfer to nonaccrual   (6)   (6)
    Balance at March 31, 2025 $17,417   $53   $17,470


    CONFERENCE CALL DETAILS

    The Company will host a conference call for investors at 11:00 a.m. CT on Friday, April 25, 2025. To participate, you may pre-register for this call utilizing the following link: https://www.netroadshow.com/events/login?show=29396e9f&confId=80376. After pre-registering for this event you will receive your access details via email. On the day of the call, you are also able to dial 1-833-470-1428 using an access code of 527448 at least fifteen minutes before the call start time. If you are unable to participate on the call, a replay will be available until July 24, 2025 by calling 1-866-813-9403 and using the replay access code of 162684. A transcript of the call will also be available on the Company’s web site (www.midwestonefinancial.com) within three business days of the call.

    ABOUT MIDWESTONE FINANCIAL GROUP, INC.

    MidWestOne Financial Group, Inc. is a financial holding company headquartered in Iowa City, Iowa. MidWestOne is the parent company of MidWestOne Bank, which operates banking offices in Iowa, Minnesota, Wisconsin, and Colorado. MidWestOne provides electronic delivery of financial services through its website, MidWestOne.bank. MidWestOne Financial Group, Inc. trades on the Nasdaq Global Select Market under the symbol “MOFG”.

    Cautionary Note Regarding Forward-Looking Statements

    This release contains certain “forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. We and our representatives may, from time to time, make written or oral statements that are “forward-looking” and provide information other than historical information. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statement. These factors include, among other things, the factors listed below. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of our management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “should,” “could,” “would,” “plans,” “goals,” “intend,” “project,” “estimate,” “forecast,” “may” or similar expressions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements. Readers are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Additionally, we undertake no obligation to update any statement in light of new information or future events, except as required under federal securities law.

    Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have an impact on our ability to achieve operating results, growth plan goals and future prospects include, but are not limited to, the following: (1) the effects of changes in interest rates, including on our net income and the value of our securities portfolio; (2) fluctuations in the value of our investment securities; (3) effects on the U.S. economy resulting from the implementation of proposed policies and executive orders, including the imposition of tariffs, changes in immigration policy, changes to regulatory or other governmental agencies, changes in foreign policy and tax regulations; (4) volatility of rate-sensitive deposits; (5) asset/liability matching risks and liquidity risks; (6) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (7) the concentration of large deposits from certain clients, including those who have balances above current FDIC insurance limits; (8) credit quality deterioration, pronounced and sustained reduction in real estate market values, or other uncertainties, including the impact of inflationary pressures and future monetary policies of the Federal Reserve in response thereto on economic conditions and our business, resulting in an increase in the allowance for credit losses, an increase in the credit loss expense, and a reduction in net earnings; (9) the sufficiency of the allowance for credit losses to absorb the amount of expected losses inherent in our existing loan portfolio; (10) the failure of assumptions underlying the establishment of allowances for credit losses and estimation of values of collateral and various financial assets and liabilities; (11) credit risks and risks from concentrations (by type of borrower, collateral, geographic area and by industry) within our loan portfolio; (12) changes in the economic environment, competition, or other factors that may affect our ability to acquire loans or influence the anticipated growth rate of loans and deposits and the quality of the loan portfolio and loan and deposit pricing; (13) governmental monetary and fiscal policies; (14) new or revised general economic, political, or industry conditions, nationally, internationally or in the communities in which we conduct business, including the risk of a recession; (15) the imposition of domestic or foreign tariffs or other governmental policies impacting the global supply chain and value of the agricultural or other products of our borrowers; (16) war or terrorist activities, including ongoing conflicts in the Middle East and the Russian invasion of Ukraine, widespread disease or pandemic, or other adverse external events, which may cause deterioration in the economy or cause instability in credit markets; (17) legislative and regulatory changes, including changes in banking, securities, trade, and tax laws and regulations and their application by our regulators, and including changes in interpretation or prioritization of such laws and regulations; (18) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies and the Financial Accounting Standards Board; (19) the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds, financial technology companies, and other financial institutions operating in our markets or elsewhere or providing similar services; (20) changes in the business and economic conditions generally and in the financial services industry, and the effects of recent developments and events in the financial services industry, including the large-scale deposit withdrawals over a short period of time that resulted in prior bank failures; (21) the occurrence of fraudulent activity, breaches, or failures of our or our third party vendors’ information security controls or cyber-security related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (22) the ability to attract and retain key executives and employees experienced in banking and financial services; (23) our ability to adapt successfully to technological changes to compete effectively in the marketplace; (24) operational risks, including data processing system failures and fraud; (25) the costs, effects and outcomes of existing or future litigation or other legal proceedings and regulatory actions; (26) the risks of mergers or branch sales (including the sale of our Florida banking operations and the acquisition of Denver Bankshares, Inc.), including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; (27) the economic impacts on the Company and its customers of climate change, natural disasters and exceptional weather occurrences, such as: tornadoes, floods and blizzards; and (28) other risk factors detailed from time to time in Securities and Exchange Commission filings made by the Company.

    MIDWESTONE FINANCIAL GROUP, INC.
    FIVE QUARTER CONSOLIDATED BALANCE SHEETS

      March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands)   2025       2024       2024       2024       2024  
    ASSETS                  
    Cash and due from banks $            68,545     $            71,803     $            72,173     $            66,228     $            68,430  
    Interest earning deposits in banks              182,360                  133,092                  129,695                    35,340                    29,328  
    Federal funds sold                       —                           —                           —                           —                            4  
    Total cash and cash equivalents              250,905                  204,895                  201,868                  101,568                    97,762  
    Debt securities available for sale at fair value           1,305,530               1,328,433               1,623,104                  771,034                  797,230  
    Held to maturity securities at amortized cost                       —                           —                           —               1,053,080               1,064,939  
    Total securities           1,305,530               1,328,433               1,623,104               1,824,114               1,862,169  
    Loans held for sale                13,836                         749                      3,283                      2,850                      2,329  
    Gross loans held for investment           4,315,546               4,328,413               4,344,559               4,304,619               4,433,258  
    Unearned income, net              (11,362 )                (12,786 )                (15,803 )                (17,387 )                (18,612 )
    Loans held for investment, net of unearned income           4,304,184               4,315,627               4,328,756               4,287,232               4,414,646  
    Allowance for credit losses              (53,900 )                (55,200 )                (54,000 )                (53,900 )                (55,900 )
    Total loans held for investment, net           4,250,284               4,260,427               4,274,756               4,233,332               4,358,746  
    Premises and equipment, net                90,031                    90,851                    90,750                    91,793                    95,986  
    Goodwill                69,788                    69,788                    69,788                    69,388                    71,118  
    Other intangible assets, net                23,611                    25,019                    26,469                    27,939                    29,531  
    Foreclosed assets, net                  3,419                      3,337                      3,583                      6,053                      3,897  
    Other assets              246,990                  252,830                  258,881                  224,621                  226,477  
    Total assets $       6,254,394     $       6,236,329     $       6,552,482     $       6,581,658     $       6,748,015  
    LIABILITIES                       
    Noninterest bearing deposits $          903,714     $          951,423     $          917,715     $          882,472     $          920,764  
    Interest bearing deposits           4,585,428               4,526,559               4,451,012               4,529,947               4,664,472  
    Total deposits           5,489,142               5,477,982               5,368,727               5,412,419               5,585,236  
    Short-term borrowings                  1,482                      3,186                  410,630                  414,684                  422,988  
    Long-term debt              111,398                  113,376                  115,051                  114,839                  122,066  
    Other liabilities                72,747                    82,089                    95,836                    96,430                    89,685  
    Total liabilities           5,674,769               5,676,633               5,990,244               6,038,372               6,219,975  
    SHAREHOLDERS’ EQUITY                       
    Common stock                21,580                    21,580                    21,580                    16,581                    16,581  
    Additional paid-in capital              414,258                  414,987                  414,965                  300,831                  300,845  
    Retained earnings              227,790                  217,776                  206,490                  306,030                  294,066  
    Treasury stock              (20,905 )                (21,885 )                (21,955 )                (22,021 )                (22,648 )
    Accumulated other comprehensive loss              (63,098 )                (72,762 )                (58,842 )                (58,135 )                (60,804 )
    Total shareholders’ equity              579,625                  559,696                  562,238                  543,286                  528,040  
    Total liabilities and shareholders’ equity $       6,254,394     $       6,236,329     $       6,552,482     $       6,581,658     $       6,748,015  
                                           

    MIDWESTONE FINANCIAL GROUP, INC.
    FIVE QUARTER CONSOLIDATED STATEMENTS OF INCOME

      Three Months Ended
      March 31,   December 31,   September 30,   June 30,   March 31,
    (In thousands, except per share data)   2025     2024     2024       2024     2024
    Interest income                  
    Loans, including fees $            59,462   $            62,458   $            62,521     $            61,643   $            57,947
    Taxable investment securities                13,327                  11,320                   8,779                     9,228                   9,460
    Tax-exempt investment securities                    703                      728                   1,611                     1,663                   1,710
    Other                 1,247                   3,761                      785                        242                      418
    Total interest income                74,739                  78,267                  73,696                    72,776                  69,535
    Interest expense                  
    Deposits                25,484                  27,324                  29,117                    28,942                  27,726
    Short-term borrowings                      25                      115                   5,043                     5,409                   4,975
    Long-term debt                 1,791                   1,890                   2,015                     2,078                   2,103
    Total interest expense                27,300                  29,329                  36,175                    36,429                  34,804
    Net interest income                47,439                  48,938                  37,521                    36,347                  34,731
    Credit loss expense                 1,687                   1,291                   1,535                     1,267                   4,689
    Net interest income after credit loss expense                45,752                  47,647                  35,986                    35,080                  30,042
    Noninterest income                  
    Investment services and trust activities                 3,544                   3,779                   3,410                     3,504                   3,503
    Service charges and fees                 2,131                   2,159                   2,170                     2,156                   2,144
    Card revenue                 1,744                   1,833                   1,935                     1,907                   1,943
    Loan revenue                 1,194                   1,841                      760                     1,525                      856
    Bank-owned life insurance                 1,057                      719                      879                        668                      660
    Investment securities gains (losses), net                      33                      161              (140,182 )                        33                        36
    Other                    433                      345                      640                    11,761                      608
    Total noninterest income (loss)                10,136                  10,837              (130,388 )                  21,554                   9,750
    Noninterest expense                  
    Compensation and employee benefits                21,212                  20,684                  19,943                    20,985                  20,930
    Occupancy expense of premises, net                 2,588                   2,772                   2,443                     2,435                   2,813
    Equipment                 2,426                   2,688                   2,486                     2,530                   2,600
    Legal and professional                 2,226                   2,534                   2,261                     2,253                   2,059
    Data processing                 1,698                   1,719                   1,580                     1,645                   1,360
    Marketing                    552                      793                      619                        636                      598
    Amortization of intangibles                 1,408                   1,449                   1,470                     1,593                   1,637
    FDIC insurance                    917                      980                      923                     1,051                      942
    Communications                    159                      154                      159                        191                      196
    Foreclosed assets, net                      74                        56                      330                        138                      358
    Other                 3,033                   3,543                   3,584                     2,304                   2,072
    Total noninterest expense                36,293                  37,372                  35,798                    35,761                  35,565
    Income (loss) before income tax expense                19,595                  21,112              (130,200 )                  20,873                   4,227
    Income tax expense (benefit)                 4,457                   4,782                (34,493 )                   5,054                      958
    Net income (loss) $            15,138   $            16,330   $          (95,707 )   $            15,819   $             3,269
                       
    Earnings (loss) per common share                  
    Basic $               0.73   $               0.79   $              (6.05 )   $               1.00   $               0.21
    Diluted $               0.73   $               0.78   $              (6.05 )   $               1.00   $               0.21
    Weighted average basic common shares outstanding                20,797                  20,776                  15,829                    15,763                  15,723
    Weighted average diluted common shares outstanding                20,849                  20,851                  15,829                    15,781                  15,774
    Dividends paid per common share $            0.2425   $            0.2425   $            0.2425     $            0.2425   $            0.2425
                                   

    MIDWESTONE FINANCIAL GROUP, INC.
    FINANCIAL STATISTICS

      As of or for the Three Months Ended
      March 31,   December 31,   March 31,
    (Dollars in thousands, except per share amounts)   2025       2024       2024  
    Earnings:          
    Net interest income $ 47,439     $ 48,938     $ 34,731  
    Noninterest income   10,136       10,837       9,750  
    Total revenue, net of interest expense   57,575       59,775       44,481  
    Credit loss expense   1,687       1,291       4,689  
    Noninterest expense   36,293       37,372       35,565  
    Income before income tax expense   19,595       21,112       4,227  
    Income tax expense   4,457       4,782       958  
    Net income $ 15,138     $ 16,330     $ 3,269  
    Adjusted earnings(1) $ 15,301     $ 16,112     $ 4,504  
    Per Share Data:          
    Diluted earnings $ 0.73     $ 0.78     $ 0.21  
    Adjusted earnings(1)   0.73       0.77       0.29  
    Book value   27.85       26.94       33.53  
    Tangible book value(1)   23.36       22.37       27.14  
    Ending Balance Sheet:          
    Total assets $ 6,254,394     $ 6,236,329     $ 6,748,015  
    Loans held for investment, net of unearned income   4,304,184       4,315,627       4,414,646  
    Total securities   1,305,530       1,328,433       1,862,169  
    Total deposits   5,489,142       5,477,982       5,585,236  
    Short-term borrowings   1,482       3,186       422,988  
    Long-term debt   111,398       113,376       122,066  
    Total shareholders’ equity   579,625       559,696       528,040  
    Average Balance Sheet:          
    Average total assets $ 6,168,546     $ 6,279,975     $ 6,635,379  
    Average total loans   4,290,710       4,307,583       4,298,216  
    Average total deposits   5,398,819       5,464,900       5,481,114  
    Financial Ratios:          
    Return on average assets   1.00 %     1.03 %     0.20 %
    Return on average equity   10.74 %     11.53 %     2.49 %
    Return on average tangible equity(1)   13.75 %     14.80 %     4.18 %
    Efficiency ratio(1)   59.38 %     59.06 %     71.28 %
    Net interest margin, tax equivalent(1)   3.44 %     3.43 %     2.33 %
    Loans to deposits ratio   78.41 %     78.78 %     79.04 %
    CET1 Ratio   10.97 %     10.73 %     8.98 %
    Common equity ratio   9.27 %     8.97 %     7.83 %
    Tangible common equity ratio(1)   7.89 %     7.57 %     6.43 %
    Credit Risk Profile:          
    Total nonperforming loans $ 17,470     $ 21,847     $ 29,267  
    Nonperforming loans ratio   0.41 %     0.51 %     0.66 %
    Total nonperforming assets $ 20,889     $ 25,184     $ 33,164  
    Nonperforming assets ratio   0.33 %     0.40 %     0.49 %
    Net charge-offs $ 3,087     $ 691     $ 189  
    Net charge-off ratio   0.29 %     0.06 %     0.02 %
    Allowance for credit losses $ 53,900     $ 55,200     $ 55,900  
    Allowance for credit losses ratio   1.25 %     1.28 %     1.27 %
    Allowance for credit losses to nonaccrual ratio   309.47 %     254.32 %     197.53 %
               
    (1) Non-GAAP measure. See the Non-GAAP Measures section for a reconciliation to the most directly comparable GAAP measure.
     

    MIDWESTONE FINANCIAL GROUP, INC.
    AVERAGE BALANCE SHEET AND YIELD ANALYSIS

      Three Months Ended
      March 31, 2025   December 31, 2024   March 31, 2024
    (Dollars in thousands) Average
    Balance
      Interest
    Income/
    Expense
      Average
    Yield/
    Cost
      Average
    Balance
      Interest
    Income/
    Expense
      Average
    Yield/
    Cost
      Average Balance   Interest
    Income/
    Expense
      Average
    Yield/
    Cost
    ASSETS                                  
    Loans, including fees (1)(2)(3) $4,290,710   $60,443   5.71%   $4,307,583   $63,443   5.86%   $4,298,216   $58,867   5.51%
    Taxable investment securities 1,207,844   13,327   4.47%   1,080,716   11,320   4.17%   1,557,603   9,460   2.44%
    Tax-exempt investment securities (2)(4) 105,563   865   3.32%   109,183   896   3.26%   328,736   2,097   2.57%
    Total securities held for investment(2) 1,313,407   14,192   4.38%   1,189,899   12,216   4.08%   1,886,339   11,557   2.46%
    Other 124,133   1,247   4.07%   309,904   3,761   4.83%   30,605   418   5.49%
    Total interest earning assets(2) $5,728,250   $75,882   5.37%   $5,807,386   $79,420   5.44%   $6,215,160   $70,842   4.58%
    Other assets 440,296           472,589           420,219        
    Total assets $6,168,546           $6,279,975           $6,635,379        
    LIABILITIES AND SHAREHOLDERS’ EQUITY                                  
    Interest checking deposits $1,240,586   $2,127   0.70%   $1,252,481   $2,205   0.70%   $1,301,470   $2,890   0.89%
    Money market deposits 1,002,743   6,333   2.56%   1,046,571   7,197   2.74%   1,102,543   8,065   2.94%
    Savings deposits 835,731   3,057   1.48%   799,931   3,158   1.57%   694,143   2,047   1.19%
    Time deposits 1,397,595   13,967   4.05%   1,410,542   14,764   4.16%   1,446,981   14,724   4.09%
    Total interest bearing deposits 4,476,655   25,484   2.31%   4,509,525   27,324   2.41%   4,545,137   27,726   2.45%
    Securities sold under agreements to repurchase 2,705   5   0.75%   3,640   8   0.87%   5,330   11   0.83%
    Other short-term borrowings   20   —%   6,465   107   6.58%   409,525   4,964   4.88%
    Total short-term borrowings 2,705   25   3.75%   10,105   115   4.53%   414,855   4,975   4.82%
    Long-term debt 113,364   1,791   6.41%   116,018   1,890   6.48%   123,266   2,103   6.86%
    Total borrowed funds 116,069   1,816   6.35%   126,123   2,005   6.32%   538,121   7,078   5.29%
    Total interest bearing liabilities $4,592,724   $27,300   2.41%   $4,635,648   $29,329   2.52%   $5,083,258   $34,804   2.75%
    Noninterest bearing deposits 922,164           955,375           935,977        
    Other liabilities 82,280           125,536           88,611        
    Shareholders’ equity 571,378           563,416           527,533        
    Total liabilities and shareholders’ equity $6,168,546           $6,279,975           $6,635,379        
    Net interest income(2)     $48,582           $50,091           $36,038    
    Net interest spread(2)         2.96%           2.92%           1.83%
    Net interest margin(2)         3.44%           3.43%           2.33%
                                       
    Total deposits(5) $5,398,819   $25,484   1.91%   $5,464,900   $27,324   1.99%   $5,481,114   $27,726   2.03%
    Cost of funds(6)         2.01%           2.09%           2.33%
    (1) Average balance includes nonaccrual loans.
    (2) Tax equivalent. The federal statutory tax rate utilized was 21%.
    (3) Interest income includes net loan fees, loan purchase discount accretion and tax equivalent adjustments. Net loan fees were $256 thousand, $456 thousand, and $237 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Loan purchase discount accretion was $1.2 million, $2.5 million, and $1.2 million for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. Tax equivalent adjustments were $981 thousand, $985 thousand, and $920 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The federal statutory tax rate utilized was 21%.
    (4) Interest income includes tax equivalent adjustments of $162 thousand, $168 thousand, and $387 thousand for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, respectively. The federal statutory tax rate utilized was 21%.
    (5) Total deposits is the sum of total interest-bearing deposits and noninterest bearing deposits. The cost of total deposits is calculated as annualized interest expense on deposits divided by average total deposits.
    (6) Cost of funds is calculated as annualized total interest expense divided by the sum of average total deposits and borrowed funds.
       

    Non-GAAP Measures

    This earnings release contains non-GAAP measures for tangible common equity, tangible book value per share, tangible common equity ratio, return on average tangible equity, net interest margin (tax equivalent), core net interest margin, loan yield (tax equivalent), core yield on loans, efficiency ratio, adjusted earnings and adjusted earnings per share. Management believes these measures provide investors with useful information regarding the Company’s profitability, financial condition and capital adequacy, consistent with how management evaluates the Company’s financial performance. The following tables provide a reconciliation of each non-GAAP measure to the most comparable GAAP measure.

    Tangible Common Equity/Tangible Book Value                    
    per Share/Tangible Common Equity Ratio   March 31,   December 31,   September 30,   June 30,   March 31,
    (Dollars in thousands, except per share data)     2025       2024       2024       2024       2024  
    Total shareholders’ equity   $ 579,625     $ 559,696     $ 562,238     $ 543,286     $ 528,040  
    Intangible assets, net     (93,399 )     (94,807 )     (96,257 )     (97,327 )     (100,649 )
    Tangible common equity   $ 486,226     $ 464,889     $ 465,981     $ 445,959     $ 427,391  
                         
    Total assets   $ 6,254,394     $ 6,236,329     $ 6,552,482     $ 6,581,658     $ 6,748,015  
    Intangible assets, net     (93,399 )     (94,807 )     (96,257 )     (97,327 )     (100,649 )
    Tangible assets   $ 6,160,995     $ 6,141,522     $ 6,456,225     $ 6,484,331     $ 6,647,366  
                         
    Book value per share   $ 27.85     $ 26.94     $ 27.06     $ 34.44     $ 33.53  
    Tangible book value per share(1)   $ 23.36     $ 22.37     $ 22.43     $ 28.27     $ 27.14  
    Shares outstanding     20,815,715       20,777,485       20,774,919       15,773,468       15,750,471  
                         
    Common equity ratio     9.27 %     8.97 %     8.58 %     8.25 %     7.83 %
    Tangible common equity ratio(2)     7.89 %     7.57 %     7.22 %     6.88 %     6.43 %
                                             

    (1) Tangible common equity divided by shares outstanding. 
    (2) Tangible common equity divided by tangible assets.  

        Three Months Ended
    Return on Average Tangible Equity   March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Net income   $ 15,138     $ 16,330     $ 3,269  
    Intangible amortization, net of tax(1)     1,047       1,075       1,228  
    Tangible net income   $ 16,185     $ 17,405     $ 4,497  
                 
    Average shareholders’ equity   $ 571,378     $ 563,416     $ 527,533  
    Average intangible assets, net     (94,169 )     (95,498 )     (95,296 )
    Average tangible equity   $ 477,209     $ 467,918     $ 432,237  
                 
    Return on average equity     10.74 %     11.53 %     2.49 %
    Return on average tangible equity(2)     13.75 %     14.80 %     4.18 %
                             

    (1) The income tax rate utilized was the blended marginal tax rate.  
    (2) Annualized tangible net income divided by average tangible equity.

    Net Interest Margin, Tax Equivalent/
    Core Net Interest Margin
      Three Months Ended
      March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Net interest income   $ 47,439     $ 48,938     $ 34,731  
    Tax equivalent adjustments:            
    Loans(1)     981       985       920  
    Securities(1)     162       168       387  
    Net interest income, tax equivalent   $ 48,582     $ 50,091     $ 36,038  
    Loan purchase discount accretion     (1,166 )     (2,496 )     (1,152 )
    Core net interest income   $ 47,416     $ 47,595     $ 34,886  
                 
    Net interest margin     3.36 %     3.35 %     2.25 %
    Net interest margin, tax equivalent(2)     3.44 %     3.43 %     2.33 %
    Core net interest margin(3)     3.36 %     3.26 %     2.26 %
    Average interest earning assets   $ 5,728,250     $ 5,807,386     $ 6,215,160  
                             

    (1) The federal statutory tax rate utilized was 21%.  
    (2) Annualized tax equivalent net interest income divided by average interest earning assets.  
    (3) Annualized core net interest income divided by average interest earning assets.   

          Three Months Ended
    Loan Yield, Tax Equivalent / Core Yield on Loans   March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Loan interest income, including fees     $ 59,462     $ 62,458     $ 57,947  
    Tax equivalent adjustment(1)       981       985       920  
    Tax equivalent loan interest income     $ 60,443     $ 63,443     $ 58,867  
    Loan purchase discount accretion       (1,166 )     (2,496 )     (1,152 )
    Core loan interest income     $ 59,277     $ 60,947     $ 57,715  
                   
    Yield on loans       5.62 %     5.77 %     5.42 %
    Yield on loans, tax equivalent(2)       5.71 %     5.86 %     5.51 %
    Core yield on loans(3)       5.60 %     5.63 %     5.40 %
    Average loans     $ 4,290,710     $ 4,307,583     $ 4,298,216  
                               

    (1) The federal statutory tax rate utilized was 21%.  
    (2) Annualized tax equivalent loan interest income divided by average loans.  
    (3) Annualized core loan interest income divided by average loans.  

          Three Months Ended
    Efficiency Ratio   March 31,   December 31,   March 31,
    (Dollars in thousands)     2025       2024       2024  
    Total noninterest expense     $ 36,293     $ 37,372     $ 35,565  
    Amortization of intangibles       (1,408 )     (1,449 )     (1,637 )
    Merger-related expenses       (40 )     (31 )     (1,314 )
    Noninterest expense used for efficiency ratio     $ 34,845     $ 35,892     $ 32,614  
                   
    Net interest income, tax equivalent(1)     $ 48,582     $ 50,091     $ 36,038  
    Plus: Noninterest income       10,136       10,837       9,750  
    Less: Investment securities gains, net       33       161       36  
    Net revenues used for efficiency ratio     $ 58,685     $ 60,767     $ 45,752  
                   
    Efficiency ratio (2)       59.38 %     59.06 %     71.28 %
                               

    (1) The federal statutory tax rate utilized was 21%.    
    (2) Noninterest expense adjusted for amortization of intangibles and merger-related expenses divided by the sum of tax equivalent net interest income, noninterest income and net investment securities gains.  

          Three Months Ended
    Adjusted Earnings   March 31,   December 31,   March 31,
    (Dollars in thousands, except per share data)     2025       2024     2024  
    Net income     $         15,138     $         16,330   $           3,269  
    Less: Investment securities gains, net of tax(1)                        25                      119                      27  
    Less: Mortgage servicing rights (loss) gain, net of tax(1)                     (158 )                    122                   (276 )
    Plus: Merger-related expenses, net of tax(1)                        30                        23                    986  
    Adjusted earnings     $         15,301     $         16,112   $           4,504  
                   
    Weighted average diluted common shares outstanding                 20,849                 20,851               15,774  
                   
    Earnings per common share – diluted     $             0.73     $             0.78   $             0.21  
    Adjusted earnings per common share(2)     $             0.73     $             0.77   $             0.29  
                             

    (1) The income tax rate utilized was the blended marginal tax rate.      
    (2) Adjusted earnings divided by weighted average diluted common shares outstanding.  

    Category: Earnings

    This news release may be downloaded from Corporate Profile | MidWestOne Financial Group, Inc.

    Source: MidWestOne Financial Group, Inc.

    Industry: Banks

    Contact:

      Charles N. Reeves Barry S. Ray
      Chief Executive Officer Chief Financial Officer
      319.356.5800   319.356.5800
         

    The MIL Network

  • MIL-OSI: South Plains Financial, Inc. Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    LUBBOCK, Texas, April 24, 2025 (GLOBE NEWSWIRE) — South Plains Financial, Inc. (NASDAQ:SPFI) (“South Plains” or the “Company”), the parent company of City Bank (“City Bank” or the “Bank”), today reported its financial results for the quarter ended March 31, 2025.

    First Quarter 2025 Highlights

    • Net income for the first quarter of 2025 was $12.3 million, compared to $16.5 million for the fourth quarter of 2024 and $10.9 million for the first quarter of 2024.
    • Diluted earnings per share for the first quarter of 2025 was $0.72, compared to $0.96 for the fourth quarter of 2024 and $0.64 for the first quarter of 2024.
    • Average cost of deposits for the first quarter of 2025 was 219 basis points, compared to 229 basis points for the fourth quarter of 2024 and 241 basis points for the first quarter of 2024.
    • Net interest margin, on a tax-equivalent basis, was 3.81% for the first quarter of 2025, compared to 3.75% for the fourth quarter of 2024 and 3.56% for the first quarter of 2024.
    • Nonperforming assets to total assets were 0.16% at March 31, 2025, compared to 0.58% at December 31, 2024 and 0.10% at March 31, 2024.
    • Return on average assets for the first quarter of 2025 was 1.16%, compared to 1.53% for the fourth quarter of 2024 and 1.04% for the first quarter of 2024.
    • Tangible book value (non-GAAP) per share was $26.05 as of March 31, 2025, compared to $25.40 as of December 31, 2024 and $23.56 as of March 31, 2024.
    • The consolidated total risk-based capital ratio, common equity tier 1 risk-based capital ratio, and tier 1 leverage ratio at March 31, 2025 were 17.93%, 13.59%, and 12.04%, respectively.

    Curtis Griffith, South Plains’ Chairman and Chief Executive Officer, commented, “We delivered strong first quarter results highlighted by solid deposit growth, healthy margin expansion as our cost of funds continued to improve, and loan growth that was in line with our expectations. Additionally, the credit quality of our loan portfolio continued to strengthen in the quarter which is a testament to our conservative culture and proactive approach to managing credit. While the outlook is uncertain, we believe that we are in an advantageous position relative to our peers and are actively looking to expand in both our metropolitan and rural markets. We have the liquidity, capital, and team to take advantage of opportunities that come our way. While the economy may slow and businesses may reduce their risk appetites, we will be ready to meet the needs of our customers in these uncertain times. We will also continue to add experienced lenders who fit our culture and want to bring their customers to a better, more stable bank. However, we will maintain our conservative credit culture and will never sacrifice credit quality for growth as we work to maintain the strong credit quality of our loan portfolio. While we see many opportunities to continue growing the Bank, we believe our share price does not reflect the value that we are creating. As a result, we spent $8.3 million to repurchase 250,000 shares in the first quarter, leaving approximately $7 million under our previously announced share repurchase program.”

    Results of Operations, Quarter Ended March 31, 2025

    Net Interest Income

    Net interest income was $38.5 million for the first quarter of 2025, compared to $38.5 million for the fourth quarter of 2024 and $35.4 million for the first quarter of 2024. Net interest margin, calculated on a tax-equivalent basis, was 3.81% for the first quarter of 2025, compared to 3.75% for the fourth quarter of 2024 and 3.56% for the first quarter of 2024. The average yield on loans was 6.67% for the first quarter of 2025, compared to 6.69% for the fourth quarter of 2024 and 6.53% for the first quarter of 2024. The average cost of deposits was 219 basis points for the first quarter of 2025, which is 10 basis points lower than the fourth quarter of 2024 and 22 basis points lower than the first quarter of 2024.

    Interest income was $59.9 million for the first quarter of 2025, compared to $61.3 million for the fourth quarter of 2024 and $58.7 million for the first quarter of 2024. Interest income decreased $1.4 million in the first quarter of 2025 from the fourth quarter of 2024, which was primarily comprised of a decrease of $692 thousand in loan interest income and a decrease of $408 thousand in interest income on other earning assets. The decline in interest income was due primarily to fewer days in the first quarter as compared to the fourth quarter of 2024. Interest income increased $1.2 million in the first quarter of 2025 compared to the first quarter of 2024. This increase was primarily due to an increase of average loans of $60.0 million and higher loan interest rates during the period, resulting in growth of $1.6 million in loan interest income.

    Interest expense was $21.4 million for the first quarter of 2025, compared to $22.8 million for the fourth quarter of 2024 and $23.4 million for the first quarter of 2024. Interest expense decreased $1.4 million compared to the fourth quarter of 2024 and decreased $2.0 million compared to the first quarter of 2024. The $1.4 million decrease was primarily as a result of a 19 basis point decline in the cost of interest-bearing deposits and fewer days in the quarter, partially offset by an increase of $50.0 million in average interest-bearing deposits in the first quarter of 2025 as compared to the fourth quarter of 2024. The $2.0 million decrease was primarily as a result of a 34 basis point decline in the cost of interest-bearing deposits, partially offset by an increase of $83.4 million in average interest-bearing deposits in the first quarter of 2025 as compared to the first quarter of 2024.

    Noninterest Income and Noninterest Expense

    Noninterest income was $10.6 million for the first quarter of 2025, compared to $13.3 million for the fourth quarter of 2024 and $11.4 million for the first quarter of 2024. The decrease from the fourth quarter of 2024 was primarily due to a decrease of $2.8 million in mortgage banking revenues, mainly as a result of a decrease of $3.0 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value decreased in the first quarter of 2025. The decrease in noninterest income for the first quarter of 2025 as compared to the first quarter of 2024 was primarily due to a decrease of $1.8 million in mortgage banking activities revenue mainly from a decrease of $1.6 million in the fair value adjustment of the mortgage servicing rights assets as interest rates that affect the value decreased in the first quarter of 2025. This decrease in mortgage banking activities revenue was partially offset by growth in service charges on deposits revenue and bank card services and interchange revenue.

    Noninterest expense was $33.0 million for the first quarter of 2025, compared to $29.9 million for the fourth quarter of 2024 and $31.9 million for the first quarter of 2024. The $3.1 million increase from the fourth quarter of 2024 was largely the result of an increase of $2.1 million in personnel expenses, primarily from annual salary adjustments, increased health insurance costs as the fourth quarter of 2024 included annual rebates received, and increased annual incentive compensation expense. There were also increases in net occupancy expense, professional service expenses, and the ineffectiveness related to fair value hedges on municipal securities. The increase in noninterest expense for the first quarter of 2025 as compared to the first quarter of 2024 was largely the result of an increase of $453 thousand in personnel expenses, largely a result of annual salary adjustments.

    Loan Portfolio and Composition

    Loans held for investment were $3.08 billion as of March 31, 2025, compared to $3.06 billion as of December 31, 2024 and $3.01 billion as of March 31, 2024. The increase of $20.8 million, or 2.7% annualized, during the first quarter of 2025 as compared to the fourth quarter of 2024 occurred primarily as a result of organic loan growth experienced in commercial owner-occupied real estate loans and commercial goods and services loans, partially offset by a seasonal decrease in agricultural production loans. As of March 31, 2025, loans held for investment increased $64.1 million, or 2.1%, from March 31, 2024, primarily attributable to organic loan growth, occurring broadly across the real estate and commercial loan segments, partially offset by decreases in auto loans and other consumer loans.

    Deposits and Borrowings

    Deposits totaled $3.79 billion as of March 31, 2025, compared to $3.62 billion as of December 31, 2024 and $3.64 billion as of March 31, 2024. Deposits increased by $171.6 million, or 4.7%, in the first quarter of 2025 from December 31, 2024. Deposits increased by $153.9 million, or 4.2%, at March 31, 2025 as compared to March 31, 2024. Noninterest-bearing deposits were $966.5 million as of March 31, 2025, compared to $935.5 million as of December 31, 2024 and $974.2 million as of March 31, 2024. Noninterest-bearing deposits represented 25.5% of total deposits as of March 31, 2025. The quarterly change in total deposits was mainly due to a seasonal increase of $70.2 million in public fund deposits and strong organic growth in retail and commercial deposits. The year-over-year increase in total deposits was primarily the result of continued organic growth in retail and commercial deposits.

    Asset Quality

    The Company recorded a provision for credit losses in the first quarter of 2025 of $420 thousand, compared to $1.2 million in the fourth quarter of 2024 and $830 thousand in the first quarter of 2024. The provision during the first quarter of 2025 was largely attributable to net charge-off activity and increased loan balances, partially offset by improved credit quality as noted below in the nonperforming assets to total assets ratio.

    The ratio of allowance for credit losses to loans held for investment was 1.40% as of March 31, 2025, compared to 1.42% as of December 31, 2024 and 1.40% as of March 31, 2024.

    The ratio of nonperforming assets to total assets was 0.16% as of March 31, 2025, compared to 0.58% as of December 31, 2024 and 0.10% as of March 31, 2024. A $19.0 million credit was placed back on accrual status at the end of the first quarter of 2025, based on sustained payment performance and improved credit structure. This credit was repaid in full subsequent to March 31, 2025. Annualized net charge-offs were 0.07% for the first quarter of 2025, compared to 0.11% for the fourth quarter of 2024 and 0.13% for the first quarter of 2024.

    Capital

    Book value per share increased to $27.33 at March 31, 2025, compared to $26.67 at December 31, 2024. The change was primarily driven by $9.8 million of net income after dividends paid and by an increase in accumulated other comprehensive income of $2.7 million, partially offset by stock repurchases of $8.3 million. The tangible common equity to tangible assets ratio (non-GAAP) decreased 28 basis points to 9.64% in the first quarter of 2025, largely due to growth of $173.0 million in tangible assets.

    Conference Call

    South Plains will host a conference call to discuss its first quarter 2025 financial results today, April 24, 2025, at 5:00 p.m., Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-407-9716 (international callers please dial 1-201-493-6779) approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call and conference materials will be available on the Company’s website at https://www.spfi.bank/news-events/events.

    A replay of the conference call will be available within two hours of the conclusion of the call and can be accessed on the investor section of the Company’s website as well as by dialing 1-844-512-2921 (international callers please dial 1-412-317-6671). The pin to access the telephone replay is 13752910. The replay will be available until May 8, 2025.

    About South Plains Financial, Inc.

    South Plains is the bank holding company for City Bank, a Texas state-chartered bank headquartered in Lubbock, Texas. City Bank is one of the largest independent banks in West Texas and has additional banking operations in the Dallas, El Paso, Greater Houston, the Permian Basin, and College Station, Texas markets, and the Ruidoso, New Mexico market. South Plains provides a wide range of commercial and consumer financial services to small and medium-sized businesses and individuals in its market areas. Its principal business activities include commercial and retail banking, along with investment, trust and mortgage services. Please visit https://www.spfi.bank for more information.

    Non-GAAP Financial Measures

    Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with generally accepted accounting principles in the United States (“GAAP”). These non-GAAP financial measures include Tangible Book Value Per Share, Tangible Common Equity to Tangible Assets, and Pre-Tax, Pre-Provision Income. The Company believes these non-GAAP financial measures provide both management and investors a more complete understanding of the Company’s financial position and performance. These non-GAAP financial measures are supplemental and are not a substitute for any analysis based on GAAP financial measures.

    We classify a financial measure as being a non-GAAP financial measure if that financial measure excludes or includes amounts, or is subject to adjustments that have the effect of excluding or including amounts, that are included or excluded, as the case may be, in the most directly comparable measure calculated and presented in accordance with GAAP as in effect from time to time in the United States in our statements of income, balance sheets or statements of cash flows. Not all companies use the same calculation of these measures; therefore, this presentation may not be comparable to other similarly titled measures as presented by other companies.

    A reconciliation of non-GAAP financial measures to GAAP financial measures is provided at the end of this press release.

    Available Information

    The Company routinely posts important information for investors on its web site (under www.spfi.bank and, more specifically, under the News & Events tab at www.spfi.bank/news-events/press-releases). The Company intends to use its web site as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD (Fair Disclosure) promulgated by the U.S. Securities and Exchange Commission (the “SEC”). Accordingly, investors should monitor the Company’s web site, in addition to following the Company’s press releases, SEC filings, public conference calls, presentations and webcasts.

    The information contained on, or that may be accessed through, the Company’s web site is not incorporated by reference into, and is not a part of, this document.

    Forward Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect South Plains’ current views with respect to future events and South Plains’ financial performance. Any statements about South Plains’ expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These statements are often, but not always, made through the use of words or phrases such as “anticipate,” “believes,” “can,” “could,” “may,” “predicts,” “potential,” “should,” “will,” “estimate,” “plans,” “projects,” “continuing,” “ongoing,” “expects,” “intends” and similar words or phrases. South Plains cautions that the forward-looking statements in this press release are based largely on South Plains’ expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond South Plains’ control. Factors that could cause such changes include, but are not limited to, the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; potential recession in the United States and our market areas; the impacts related to or resulting from uncertainty in the banking industry as a whole; increased competition for deposits in our market areas and related changes in deposit customer behavior; the impact of changes in market interest rates, whether due to a continuation of the elevated interest rate environment or further reductions in interest rates and a resulting decline in net interest income; the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas; the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; increases in unemployment rates in the United States and our market areas; adverse changes in customer spending and savings habits; declines in commercial real estate values and prices; a deterioration of the credit rating for U.S. long-term sovereign debt or uncertainty regarding United States fiscal debt, deficit and budget matters; cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events, including as a result of changes in U.S. presidential administrations or Congress; the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts and the resulting impact on the Company and its customers; competition and market expansion opportunities; changes in non-interest expenditures or in the anticipated benefits of such expenditures; the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; potential costs related to the impacts of climate change; current or future litigation, regulatory examinations or other legal and/or regulatory actions; and changes in applicable laws and regulations. Additional information regarding these risks and uncertainties to which South Plains’ business and future financial performance are subject is contained in South Plains’ most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of such documents, and other documents South Plains files or furnishes with the SEC from time to time, which are available on the SEC’s website, www.sec.gov. Actual results, performance or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements due to additional risks and uncertainties of which South Plains is not currently aware or which it does not currently view as, but in the future may become, material to its business or operating results. Due to these and other possible uncertainties and risks, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. Any forward-looking statements presented herein are made only as of the date of this press release, and South Plains does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, new information, the occurrence of unanticipated events, or otherwise, except as required by applicable law. All forward-looking statements, express or implied, included in the press release are qualified in their entirety by this cautionary statement.

    Contact: Mikella Newsom, Chief Risk Officer and Secretary
      (866) 771-3347
      investors@city.bank

    Source: South Plains Financial, Inc.

    South Plains Financial, Inc.
    Consolidated Financial Highlights – (Unaudited)
    (Dollars in thousands, except share data)

      As of and for the quarter ended
      March 31,
    2025
      December 31,
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
    Selected Income Statement Data:                            
    Interest income $ 59,922     $ 61,324     $ 61,640     $ 59,208     $ 58,727  
    Interest expense   21,395       22,776       24,346       23,320       23,359  
    Net interest income   38,527       38,548       37,294       35,888       35,368  
    Provision for credit losses   420       1,200       495       1,775       830  
    Noninterest income   10,625       13,319       10,635       12,709       11,409  
    Noninterest expense   33,030       29,948       33,128       32,572       31,930  
    Income tax expense   3,408       4,222       3,094       3,116       3,143  
    Net income   12,294       16,497       11,212       11,134       10,874  
    Per Share Data (Common Stock):                            
    Net earnings, basic $ 0.75     $ 1.01     $ 0.68     $ 0.68     $ 0.66  
    Net earnings, diluted   0.72       0.96       0.66       0.66       0.64  
    Cash dividends declared and paid   0.15       0.15       0.14       0.14       0.13  
    Book value   27.33       26.67       27.04       25.45       24.87  
    Tangible book value (non-GAAP)   26.05       25.40       25.75       24.15       23.56  
    Weighted average shares outstanding, basic   16,415,862       16,400,361       16,386,079       16,425,360       16,429,919  
    Weighted average shares outstanding, dilutive   17,065,599       17,161,646       17,056,959       16,932,077       16,938,857  
    Shares outstanding at end of period   16,235,647       16,455,826       16,386,627       16,424,021       16,431,755  
    Selected Period End Balance Sheet Data:                            
    Cash and cash equivalents $ 536,300     $ 359,082     $ 471,167     $ 298,006     $ 371,939  
    Investment securities   571,527       577,240       606,889       591,031       599,869  
    Total loans held for investment   3,075,860       3,055,054       3,037,375       3,094,273       3,011,799  
    Allowance for credit losses   42,968       43,237       42,886       43,173       42,174  
    Total assets   4,405,209       4,232,239       4,337,659       4,220,936       4,218,993  
    Interest-bearing deposits   2,826,055       2,685,366       2,720,880       2,672,948       2,664,397  
    Noninterest-bearing deposits   966,464       935,510       998,480       951,565       974,174  
    Total deposits   3,792,519       3,620,876       3,719,360       3,624,513       3,638,571  
    Borrowings   110,400       110,354       110,307       110,261       110,214  
    Total stockholders’ equity   443,743       438,949       443,122       417,985       408,712  
    Summary Performance Ratios:                            
    Return on average assets (annualized)   1.16 %     1.53 %     1.05 %     1.07 %     1.04 %
    Return on average equity (annualized)   11.30 %     14.88 %     10.36 %     10.83 %     10.72 %
    Net interest margin(1)   3.81 %     3.75 %     3.65 %     3.63 %     3.56 %
    Yield on loans   6.67 %     6.69 %     6.68 %     6.60 %     6.53 %
    Cost of interest-bearing deposits   2.93 %     3.12 %     3.36 %     3.33 %     3.27 %
    Efficiency ratio   66.90 %     57.50 %     68.80 %     66.72 %     67.94 %
    Summary Credit Quality Data:                            
    Nonperforming loans $ 6,467     $ 24,023     $ 24,693     $ 23,452     $ 3,380  
    Nonperforming loans to total loans held for investment   0.21 %     0.79 %     0.81 %     0.76 %     0.11 %
    Other real estate owned $ 600     $ 530     $ 973     $ 755     $ 862  
    Nonperforming assets to total assets   0.16 %     0.58 %     0.59 %     0.57 %     0.10 %
    Allowance for credit losses to total loans held for investment   1.40 %     1.42 %     1.41 %     1.40 %     1.40 %
    Net charge-offs to average loans outstanding (annualized)   0.07 %     0.11 %     0.11 %     0.10 %     0.13 %
      As of and for the quarter ended
      March 31
    2025
      December 31,
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
    Capital Ratios:                            
    Total stockholders’ equity to total assets   10.07 %     10.37 %     10.22 %     9.90 %     9.69 %
    Tangible common equity to tangible assets (non-GAAP)   9.64 %     9.92 %     9.77 %     9.44 %     9.22 %
    Common equity tier 1 to risk-weighted assets   13.59 %     13.53 %     13.25 %     12.61 %     12.67 %
    Tier 1 capital to average assets   12.04 %     12.04 %     11.76 %     11.81 %     11.51 %
    Total capital to risk-weighted assets   17.93 %     17.86 %     17.61 %     16.86 %     17.00 %

    (1)  Net interest margin is calculated as the annual net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

    South Plains Financial, Inc.
    Average Balances and Yields – (Unaudited)
    (Dollars in thousands)

      For the Three Months Ended
      March 31, 2025   March 31, 2024
           
      Average
    Balance
      Interest   Yield/Rate   Average
    Balance
      Interest   Yield/Rate
    Assets                                          
    Loans $ 3,074,568     $ 50,577       6.67 %   $ 3,014,537     $ 48,940       6.53 %
    Debt securities – taxable   510,354       4,692       3.73 %     554,081       5,511       4.00 %
    Debt securities – nontaxable   153,229       1,014       2.68 %     156,254       1,024       2.64 %
    Other interest-bearing assets   386,979       3,859       4.04 %     298,969       3,475       4.67 %
                                               
    Total interest-earning assets   4,125,130       60,142       5.91 %     4,023,841       58,950       5.89 %
    Noninterest-earning assets   171,683                     184,293                
                                               
    Total assets $ 4,296,813                   $ 4,208,134                
                                               
    Liabilities & stockholders’ equity                                          
    NOW, Savings, MMDA’s $ 2,302,344       15,511       2.73 %   $ 2,285,981       17,997       3.17 %
    Time deposits   441,895       4,316       3.96 %     374,852       3,666       3.93 %
    Short-term borrowings   3             0.00 %     3             0.00 %
    Notes payable & other long-term borrowings               0.00 %                 0.00 %
    Subordinated debt   63,984       835       5.29 %     63,798       835       5.26 %
    Junior subordinated deferrable interest debentures   46,393       733       6.41 %     46,393       861       7.46 %
                                               
    Total interest-bearing liabilities   2,854,619       21,395       3.04 %     2,771,027       23,359       3.39 %
    Demand deposits   934,775                     958,334                
    Other liabilities   66,073                     70,860                
    Stockholders’ equity   441,346                     407,913                
                                               
    Total liabilities & stockholders’ equity $ 4,296,813                   $ 4,208,134                
                                               
    Net interest income         $ 38,747                   $ 35,591        
    Net interest margin(2)                   3.81 %                     3.56 %

    (1)  Average loan balances include nonaccrual loans and loans held for sale.
    (2)  Net interest margin is calculated as the annualized net interest income, on a fully tax-equivalent basis, divided by average interest-earning assets.

    South Plains Financial, Inc.
    Consolidated Balance Sheets
    (Unaudited)
    (Dollars in thousands)

      As of
      March 31,
    2025
      December 31,
    2024
               
    Assets          
    Cash and due from banks $ 56,006     $ 54,114  
    Interest-bearing deposits in banks   480,294       304,968  
    Securities available for sale   571,527       577,240  
    Loans held for sale   13,931       20,542  
    Loans held for investment   3,075,860       3,055,054  
    Less:  Allowance for credit losses   (42,968 )     (43,237 )
    Net loans held for investment   3,032,892       3,011,817  
    Premises and equipment, net   50,873       52,951  
    Goodwill   19,315       19,315  
    Intangible assets   1,569       1,720  
    Mortgage servicing rights   24,906       26,292  
    Other assets   153,896       163,280  
    Total assets $ 4,405,209     $ 4,232,239  
               
    Liabilities and Stockholders’ Equity          
    Noninterest-bearing deposits $ 966,464     $ 935,510  
    Interest-bearing deposits   2,826,055       2,685,366  
    Total deposits   3,792,519       3,620,876  
    Subordinated debt   64,007       63,961  
    Junior subordinated deferrable interest debentures   46,393       46,393  
    Other liabilities   58,547       62,060  
    Total liabilities   3,961,466       3,793,290  
    Stockholders’ Equity          
    Common stock   16,236       16,456  
    Additional paid-in capital   89,799       97,287  
    Retained earnings   395,652       385,827  
    Accumulated other comprehensive income (loss)   (57,944 )     (60,621 )
    Total stockholders’ equity   443,743       438,949  
    Total liabilities and stockholders’ equity $ 4,405,209     $ 4,232,239  

    South Plains Financial, Inc.
    Consolidated Statements of Income
    (Unaudited)
    (Dollars in thousands)

      Three Months Ended
      March 31,
    2025
      March 31,
    2024
                   
    Interest income:              
    Loans, including fees $ 50,570     $ 48,932  
    Other   9,352       9,795  
    Total interest income   59,922       58,727  
    Interest expense:              
    Deposits   19,827       21,663  
    Subordinated debt   835       835  
    Junior subordinated deferrable interest debentures   733       861  
    Other          
    Total interest expense   21,395       23,359  
    Net interest income   38,527       35,368  
    Provision for credit losses   420       830  
    Net interest income after provision for credit losses   38,107       34,538  
    Noninterest income:              
    Service charges on deposits   2,141       1,813  
    Income from insurance activities   28       34  
    Mortgage banking activities   2,113       3,945  
    Bank card services and interchange fees   3,379       3,061  
    Other   2,964       2,556  
    Total noninterest income   10,625       11,409  
    Noninterest expense:              
    Salaries and employee benefits   19,441       18,988  
    Net occupancy expense   4,027       3,920  
    Professional services   1,730       1,483  
    Marketing and development   905       754  
    Other   6,927       6,785  
    Total noninterest expense   33,030       31,930  
    Income before income taxes   15,702       14,017  
    Income tax expense   3,408       3,143  
    Net income $ 12,294     $ 10,874  

    South Plains Financial, Inc.
    Loan Composition
    (Unaudited)
    (Dollars in thousands)

      As of
      March 31,
    2025
      December 31,
    2024
                   
    Loans:              
    Commercial Real Estate $ 1,126,800     $ 1,119,063  
    Commercial – Specialized   366,796       388,955  
    Commercial – General   584,705       557,371  
    Consumer:              
    1-4 Family Residential   569,799       566,400  
    Auto Loans   261,629       254,474  
    Other Consumer   64,090       64,936  
    Construction   102,041       103,855  
    Total loans held for investment $ 3,075,860     $ 3,055,054  

    South Plains Financial, Inc.
    Deposit Composition
    (Unaudited)
    (Dollars in thousands)

      As of
      March 31,
    2025
      December 31,
    2024
                   
    Deposits:              
    Noninterest-bearing deposits $ 966,464     $ 935,510  
    NOW & other transaction accounts   1,302,642       498,718  
    MMDA & other savings   1,082,596       1,741,988  
    Time deposits   440,817       444,660  
    Total deposits $ 3,792,519     $ 3,620,876  

    South Plains Financial, Inc.
    Reconciliation of Non-GAAP Financial Measures (Unaudited)
    (Dollars in thousands)

      For the quarter ended
      March 31,
    2025
      December 31,
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
    Pre-tax, pre-provision income                                      
    Net income $ 12,294     $ 16,497     $ 11,212     $ 11,134     $ 10,874  
    Income tax expense   3,408       4,222       3,094       3,116       3,143  
    Provision for credit losses   420       1,200       495       1,775       830  
    Pre-tax, pre-provision income $ 16,122     $ 21,919     $ 14,801     $ 16,025     $ 14,847  
      As of
      March 31,
    2025
      December 31,
    2024
      September 30,
    2024
      June 30,
    2024
      March 31,
    2024
    Tangible common equity                            
    Total common stockholders’ equity $ 443,743     $ 438,949     $ 443,122     $ 417,985     $ 408,712  
    Less:  goodwill and other intangibles   (20,884 )     (21,035 )     (21,197 )     (21,379 )     (21,562 )
                                 
    Tangible common equity $ 422,859     $ 417,914     $ 421,925     $ 396,606     $ 387,150  
                                 
    Tangible assets                            
    Total assets $ 4,405,209     $ 4,232,239     $ 4,337,659     $ 4,220,936     $ 4,218,993  
    Less:  goodwill and other intangibles   (20,884 )     (21,035 )     (21,197 )     (21,379 )     (21,562 )
                                 
    Tangible assets $ 4,384,325     $ 4,211,204     $ 4,316,462     $ 4,199,557     $ 4,197,431  
                                 
    Shares outstanding   16,235,647       16,455,826       16,386,627       16,424,021       16,431,755  
                                 
    Total stockholders’ equity to total assets   10.07 %     10.37 %     10.22 %     9.90 %     9.69 %
    Tangible common equity to tangible assets   9.64 %     9.92 %     9.77 %     9.44 %     9.22 %
    Book value per share $ 27.33     $ 26.67     $ 27.04     $ 25.45     $ 24.87  
    Tangible book value per share $ 26.05     $ 25.40     $ 25.75     $ 24.15     $ 23.56  

    The MIL Network

  • MIL-OSI: Glacier Bancorp, Inc. Announces Results For the Quarter and Period Ended March 31, 2025

    Source: GlobeNewswire (MIL-OSI)

    1st Quarter 2025 Highlights:

    • Diluted earnings per share for the current quarter was $0.48 per share, a decrease of 11 percent from the prior quarter diluted earnings per share of $0.54 per share and an increase of 66 percent from the prior year first quarter diluted earnings per share of $0.29 per share.
    • Net income was $54.6 million for the current quarter, a decrease of $7.2 million, or 12 percent, from the prior quarter net income of $61.8 million and an increase of $21.9 million, or 67 percent, from the prior year first quarter net income of $32.6 million.
    • The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.04 percent, an increase of 7 basis points from the prior quarter net interest margin of 2.97 percent and an increase of 45 basis points from the prior year first quarter net interest margin of 2.59 percent.
    • Total deposits of $20.634 billion increased $87.1 million, or 2 percent annualized, during the current quarter.
    • The loan yield of 5.77 percent in the current quarter increased 5 basis points from the prior quarter loan yield of 5.72 percent and increased 31 basis points from the prior year first quarter loan yield of 5.46 percent.
    • The total earning asset yield of 4.61 percent in the current quarter increased 4 basis points from the prior quarter earning asset yield of 4.57 percent and increased 30 basis points from the prior year first quarter earning asset yield of 4.31 percent.
    • The total core deposit cost (including non-interest bearing deposits) of 1.25 percent in the current quarter decreased 4 basis point from the prior quarter total core deposit cost of 1.29 percent.
    • The total cost of funding (including non-interest bearing deposits) of 1.68 percent in the current quarter decreased 3 basis point from the prior quarter total cost of funding of 1.71 percent.
    • The Company declared a quarterly dividend of $0.33 per share. The Company has declared 160 consecutive quarterly dividends and has increased the dividend 49 times.
    • The Company announced the signing of a definitive agreement to acquire Bank of Idaho Holding Co., the bank holding company for Bank of Idaho (collectively, “BOID”) which had total assets of $1.3 billion as of March 31, 2025. This will be the Company’s 26th bank acquisition since 2000 and its 12th announced transaction in the past 10 years.

    Financial Summary  

      At or for the Three Months ended
    (Dollars in thousands, except per share and market data) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
    Operating results          
    Net income $ 54,568     61,754     32,627  
    Basic earnings per share $ 0.48     0.54     0.29  
    Diluted earnings per share $ 0.48     0.54     0.29  
    Dividends declared per share $ 0.33     0.33     0.33  
    Market value per share          
    Closing $ 44.22     50.22     40.28  
    High $ 52.81     60.67     42.75  
    Low $ 43.18     43.70     34.74  
    Selected ratios and other data          
    Number of common stock shares outstanding   113,517,944     113,401,955     113,388,590  
    Average outstanding shares – basic   113,451,199     113,398,213     112,492,142  
    Average outstanding shares – diluted   113,546,365     113,541,026     112,554,402  
    Return on average assets (annualized)   0.80 %   0.87 %   0.47 %
    Return on average equity (annualized)   6.77 %   7.62 %   4.25 %
    Efficiency ratio   65.49 %   60.50 %   74.41 %
    Loan to deposit ratio   83.64 %   84.17 %   82.04 %
    Number of full time equivalent employees   3,457     3,441     3,438  
    Number of locations   227     227     232  
    Number of ATMs   286     284     285  
                       

    KALISPELL, Mont., April 24, 2025 (GLOBE NEWSWIRE) — Glacier Bancorp, Inc. (NYSE: GBCI) reported net income of $54.6 million for the current quarter, a decrease of $7.2 million, or 12 percent from the prior quarter net income of $61.8 million and an increase of $21.9 million, or 67 percent, from the $32.6 million of net income for the prior year first quarter. Diluted earnings per share for the current quarter was $0.48 per share, a decrease of 11 percent from the prior quarter diluted earnings per share of $0.54 per share and an increase of 65 percent from the prior year first quarter diluted earnings per share of $0.29. “We are very pleased with the long-term positive trends we see in our Company. Deposit costs are decreasing, loan yields are increasing, and margin continues to grow,” said Randy Chesler, President and Chief Executive Officer. “While uncertainty about the economy persists, we remain optimistic about our customers’ ability to quickly adapt to a changing environment.”

    On January 13, 2025, the Company announced the signing of a definitive agreement to acquire BOID with 15 branches across eastern Idaho, Boise and eastern Washington. As of March 31, 2025, BOID had total assets of $1.3 billion, total loans of $1.1 billion and total deposits of $1.1 billion. Upon closing of the transaction, the BOID operations will join three existing Glacier Bank divisions. The Eastern Idaho operations of Bank of Idaho will join Citizens Community Bank, the Boise operations will join Mountain West Bank and the Eastern Washington operations will join Wheatland Bank. The acquisition has received all required regulatory approvals and is scheduled to close on April 30, 2025, subject to satisfaction of the remaining conditions set forth in the merger agreement and the approval by the BOID shareholders.

    Asset Summary

                  $ Change from
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Dec 31,
    2024
      Mar 31,
    2024
    Cash and cash equivalents $ 981,485     848,408     788,660     133,077     192,825  
    Debt securities, available-for-sale   4,172,312     4,245,205     4,629,073     (72,893 )   (456,761 )
    Debt securities, held-to-maturity   3,261,575     3,294,847     3,451,583     (33,272 )   (190,008 )
    Total debt securities   7,433,887     7,540,052     8,080,656     (106,165 )   (646,769 )
    Loans receivable                  
    Residential real estate   1,850,079     1,858,929     1,752,514     (8,850 )   97,565  
    Commercial real estate   10,952,809     10,963,713     10,672,269     (10,904 )   280,540  
    Other commercial   3,121,477     3,119,535     3,030,608     1,942     90,869  
    Home equity   920,132     930,994     883,062     (10,862 )   37,070  
    Other consumer   374,021     388,678     394,049     (14,657 )   (20,028 )
    Loans receivable   17,218,518     17,261,849     16,732,502     (43,331 )   486,016  
    Allowance for credit losses   (210,400 )   (206,041 )   (198,779 )   (4,359 )   (11,621 )
    Loans receivable, net   17,008,118     17,055,808     16,533,723     (47,690 )   474,395  
    Other assets   2,435,389     2,458,719     2,419,131     (23,330 )   16,258  
    Total assets $ 27,858,879     27,902,987     27,822,170     (44,108 )   36,709  
                                   

    The Company continues to maintain a strong cash position of $981 million at March 31, 2025 which was an increase of $133 million over the prior quarter and an increase of $193 million over the prior year first quarter. Total debt securities of $7.434 billion at March 31, 2025 decreased $106 million, or 1 percent, during the current quarter and decreased $647 million, or 8 percent, from the prior year first quarter. Debt securities represented 27 percent of total assets at March 31, 2025 and December 31, 2024 compared to 29 percent at March 31, 2024.

    The loan portfolio of $17.219 billion at March 31, 2025 decreased $43 million, or 25 basis points, during the current quarter and increased $486 million, or 3 percent, from the prior year first quarter. Excluding the Rocky Mountain Bank (“RMB”) acquisition on July 19, 2024, the loan portfolio organically increased $214 million, or 1 percent, since the prior year first quarter. Excluding the RMB acquisition, the loan category with the largest dollar increase in the last twelve months was commercial real estate which increased $159 million, or 1 percent.

    Credit Quality Summary

      At or for the
    Three Months ended
      At or for the
    Year ended
      At or for the
    Three Months ended
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
    Allowance for credit losses          
    Balance at beginning of period $ 206,041     192,757     192,757  
    Acquisitions       3     3  
    Provision for credit losses   6,154     27,179     9,091  
    Charge-offs   (3,897 )   (18,626 )   (4,295 )
    Recoveries   2,102     4,728     1,223  
    Balance at end of period $ 210,400     206,041     198,779  
    Provision for credit losses          
    Loan portfolio $ 6,154     27,179     9,091  
    Unfunded loan commitments   1,660     1,127     (842 )
    Total provision for credit losses $ 7,814     28,306     8,249  
    Other real estate owned $ 1,085     1,085     432  
    Other foreclosed assets   68     79     459  
    Accruing loans 90 days or more past due   5,289     6,177     3,796  
    Non-accrual loans   32,896     20,445     20,738  
    Total non-performing assets $ 39,338     27,786     25,425  
    Non-performing assets as a percentage of subsidiary assets   0.14 %   0.10 %   0.09 %
    Allowance for credit losses as a percentage of non-performing loans   551 %   774 %   810 %
    Allowance for credit losses as a percentage of total loans   1.22 %   1.19 %   1.19 %
    Net charge-offs as a percentage of total loans   0.01 %   0.08 %   0.02 %
    Accruing loans 30-89 days past due $ 46,458     32,228     62,423  
    U.S. government guarantees included in non-performing assets $ 685     748     1,490  
                       

    Non-performing assets as a percentage of subsidiary assets at March 31, 2025 was 0.14 percent compared to 0.10 percent in the prior quarter and 0.09 percent in the prior year first quarter. Non-performing assets of $39.3 million at March 31, 2025 increased $11.6 million, or 42 percent, over the prior quarter and increased $13.9 million, or 55 percent, over the prior year first quarter. The increase in the non-performing loans in the current quarter was primarily attributable to a single credit relationship.

    Early stage delinquencies (accruing loans 30-89 days past due) as a percentage of loans at March 31, 2025 were 0.27 percent compared to 0.19 percent for the prior quarter end and 0.37 percent for the prior year first quarter. Early stage delinquencies of $46.5 million at March 31, 2025 increased $14.2 million from the prior quarter and decreased $16.0 million from prior year first quarter.

    The current quarter credit loss expense of $7.8 million included $6.2 million of provision for credit losses on loans and $1.7 million of provision for credit losses on unfunded commitments.

    The allowance for credit losses (“ACL”) on loans as a percentage of total loans outstanding at March 31, 2025 was 1.22 percent compared to 1.19 percent at year end and the prior year first quarter. Loan portfolio growth, composition, average loan size, credit quality considerations, economic forecasts, actual results, and other environmental factors will continue to determine the level of the provision for credit losses for loans. 

    Credit Quality Trends and Provision for Credit Losses on the Loan Portfolio

    (Dollars in thousands) Provision for
    Credit Losses Loans
      Net Charge-Offs   ACL
    as a Percent
    of Loans
      Accruing
    Loans 30-89
    Days Past Due
    as a Percent of
    Loans
      Non-Performing
    Assets to
    Total Subsidiary
    Assets
    First quarter 2025 $ 6,154   $ 1,795   1.22 %   0.27 %   0.14 %
    Fourth quarter 2024   6,041     5,170   1.19 %   0.19 %   0.10 %
    Third quarter 2024   6,981     2,766   1.19 %   0.33 %   0.10 %
    Second quarter 2024   5,066     2,890   1.19 %   0.29 %   0.06 %
    First quarter 2024   9,091     3,072   1.19 %   0.37 %   0.09 %
    Fourth quarter 2023   4,181     3,695   1.19 %   0.31 %   0.09 %
    Third quarter 2023   5,095     2,209   1.19 %   0.09 %   0.15 %
    Second quarter 2023   5,254     2,473   1.19 %   0.16 %   0.12 %
                                 

    Net charge-offs for the current quarter were $1.8 million compared to $5.2 million in the prior quarter and $3.1 million for the prior year first quarter. The current quarter net charge-offs included $1.9 million in deposit overdraft net charge-offs and $78 thousand of net loan recoveries.

    Supplemental information regarding credit quality and identification of the Company’s loan portfolio based on the regulatory classification of loans is provided in the exhibits at the end of this press release. The regulatory classification of loans is based primarily on collateral type while the Company’s loan segments presented herein are based on the purpose of the loan.

    Liability Summary

                  $ Change from
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Dec 31,
    2024
      Mar 31,
    2024
    Deposits                  
    Non-interest bearing deposits $ 6,100,548   6,136,709   6,055,069   (36,161 )   45,479  
    NOW and DDA accounts   5,676,177   5,543,512   5,376,605   132,665     299,572  
    Savings accounts   2,896,378   2,845,124   2,949,908   51,254     (53,530 )
    Money market deposit accounts   2,816,874   2,878,213   3,002,942   (61,339 )   (186,068 )
    Certificate accounts   3,140,333   3,139,821   3,039,190   512     101,143  
    Core deposits, total   20,630,310   20,543,379   20,423,714   86,931     206,596  
    Wholesale deposits   3,740   3,615   3,809   125     (69 )
    Deposits, total   20,634,050   20,546,994   20,427,523   87,056     206,527  
    Repurchase agreements   1,849,070   1,777,475   1,540,008   71,595     309,062  
    Deposits and repurchase agreements, total   22,483,120   22,324,469   21,967,531   158,651     515,589  
    Federal Home Loan Bank advances   1,520,000   1,800,000   2,140,157   (280,000 )   (620,157 )
    Other borrowed funds   82,443   83,341   88,814   (898 )   (6,371 )
    Subordinated debentures   133,145   133,105   132,984   40     161  
    Other liabilities   352,563   338,218   381,977   14,345     (29,414 )
    Total liabilities $ 24,571,271   24,679,133   24,711,463   (107,862 )   (140,192 )
                             

    Total deposits of $20.634 billion at March 31, 2025 increased $87.1 million, or 2 percent annualized, from the prior quarter and increased $207 million, or 1 percent, from the prior year first quarter. Total repurchase agreements of $1.849 billion at March 31, 2025 increased $71.6 million, or 4 percent, from the prior quarter and increased $309 million, or 20 percent, from the prior year first quarter. Total deposits organically decreased $190 million, or 1 percent, from the prior year first quarter and total deposits and repurchase agreements organically increased $115 million, or 52 basis points, from the prior year first quarter. Non-interest bearing deposits represented 30 percent of total deposits at March 31, 2025, December 31, 2024 and March 31, 2024. Federal Home Loan Bank (“FHLB”) advances of $1.520 billion decreased $280 million, or 16 percent, from the prior quarter and decreased $620 million, or 29 percent, from the prior year first quarter.

    Stockholders’ Equity Summary

                  $ Change from
    (Dollars in thousands, except per share data) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Dec 31,
    2024
      Mar 31,
    2024
    Common equity $ 3,550,719     3,533,150     3,483,012     17,569   67,707  
    Accumulated other comprehensive loss   (263,111 )   (309,296 )   (372,305 )   46,185   109,194  
    Total stockholders’ equity   3,287,608     3,223,854     3,110,707     63,754   176,901  
    Goodwill and intangibles, net   (1,099,229 )   (1,102,500 )   (1,069,808 )   3,271   (29,421 )
    Tangible stockholders’ equity $ 2,188,379     2,121,354     2,040,899     67,025   147,480  
    Stockholders’ equity to total assets   11.80 %   11.55 %   11.18 %          
    Tangible stockholders’ equity to total tangible assets   8.18 %   7.92 %   7.63 %          
    Book value per common share $ 28.96     28.43     27.43     0.53   1.53  
    Tangible book value per common share $ 19.28     18.71     18.00      0.57   1.28  
                                 

    Tangible stockholders’ equity of $2.188 billion at March 31, 2025 increased $67.0 million, or 3 percent, compared to the prior quarter and was primarily the result of a decrease in unrealized loss on the available-for-sale debt securities and earnings retention. Tangible stockholders’ equity at March 31, 2025 increased $147 million, or 7 percent, compared to the prior year first quarter and was primarily due to the decrease in unrealized loss on the available-for-sale debt securities and earnings retention. The increase was partially offset by the increase in goodwill and core deposits associated with the RMB acquisition. Tangible book value per common share of $19.28 at the current quarter end increased $0.57 per share, or 3 percent, from the prior quarter and increased $1.28 per share, or 7 percent, from the prior year first quarter.

    Cash Dividends
    On March 26, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.33 per share. The dividend was payable April 17, 2025 to shareholders of record on April 8, 2025. The dividend was the Company’s 160th consecutive regular dividend. Future cash dividends will depend on a variety of factors, including net income, capital, asset quality, general economic conditions and regulatory considerations.

    Operating Results for Three Months Ended March 31, 2025 
    Compared to December 31, 2024, and March 31, 2024

    Income Summary

      Three Months ended   $ Change from
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Dec 31,
    2024
      Mar 31,
    2024
    Net interest income                  
    Interest income $ 289,925     297,036     279,402     (7,111 )   10,523  
    Interest expense   99,946     105,593     112,922     (5,647 )   (12,976 )
    Total net interest income   189,979     191,443     166,480     (1,464 )   23,499  
                       
    Non-interest income                  
    Service charges and other fees   18,818     20,322     18,563     (1,504 )   255  
    Miscellaneous loan fees and charges   4,664     4,541     4,362     123     302  
    Gain on sale of loans   4,311     3,926     3,362     385     949  
    Gain on sale of securities           16         (16 )
    Other income   4,849     2,760     3,686     2,089     1,163  
    Total non-interest income   32,642     31,549     29,989     1,093     2,653  
    Total income $ 222,621     222,992     196,469     (371 )   26,152  
    Net interest margin (tax-equivalent)   3.04 %   2.97 %   2.59 %        
                               

    Net Interest Income
    Net interest income of $190 million for the current quarter decreased $1.5 million, or 1 percent, from the prior quarter net interest income of $191 million and increased $23.5 million, or 14 percent, from the prior year first quarter net interest income of $166 million. The current quarter interest income of $290 million decreased $7.1 million, or 2 percent, over the prior quarter and was primarily driven by fewer days in the current quarter coupled with decreased average interest-bearing cash balances. The current quarter interest income increased $10.5 million, or 4 percent, over the prior year first quarter primarily due to the increase in the loan yields and the increase in average balances of the loan portfolio. The loan yield of 5.77 percent in the current quarter increased 5 basis points from the prior quarter loan yield of 5.72 percent and increased 31 basis points from the prior year first quarter loan yield of 5.46 percent.

    The current quarter interest expense of $99.9 million decreased $5.6 million, or 5 percent, over the prior quarter and was primarily attributable to a decrease in deposit costs. The current quarter interest expense decreased $13.0 million, or 11 percent, over the prior year first quarter and was primarily the result of lower average wholesale borrowings and a decrease in deposit costs. Core deposit cost (including non-interest bearing deposits) was 1.25 percent for the current quarter compared to 1.29 percent in the prior quarter and 1.34 percent for the prior year first quarter. The total cost of funding (including non-interest bearing deposits) of 1.68 percent in the current quarter decreased 3 basis points from the prior quarter and decreased 16 basis point from the prior year first quarter.

    The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was 3.04 percent, an increase of 7 basis points from the prior quarter net interest margin of 2.97 percent and was primarily driven by an increase in loan yields and a decrease in total cost of funding. The net interest margin as a percentage of earning assets, on a tax-equivalent basis, for the current quarter was an increase of 45 basis points from the prior year first quarter net interest margin of 2.59 percent and was primarily driven by the increase in loan yields and the decrease in core deposit cost. Core net interest margin excludes the impact from discount accretion and non-accrual interest. Excluding the 5 basis points from discount accretion, the core net interest margin was 2.99 percent in the current quarter compared to 2.97 percent in the prior quarter and 2.59 in the prior year first quarter. “The Company’s net interest margin increased for the fifth consecutive quarter,” said Ron Copher, Chief Financial Officer. “The continued increase in loan yields and decrease in the deposit costs contributed to the 7 basis points increase in the net interest margin as it expanded to 3.04 percent in the current quarter.”

    Non-interest Income
    Non-interest income for the current quarter totaled $32.6 million, which was an increase of $1.1 million, or 3 percent, over the prior quarter and an increase of $2.7 million, or 9 percent, over the prior year first quarter. Service charges and other fees of $18.8 million for the current quarter decreased $1.5 million, or 7 percent, compared to the prior quarter and increased $255 thousand, or 1 percent, compared to the prior year first quarter. Gain on the sale of residential loans of $4.3 million for the current quarter increased $385 thousand, or 10 percent, compared to the prior quarter and increased $949 thousand, or 28 percent, from the prior year first quarter. Other income of $4.8 million increased $2.1 million, or 75 percent, over the prior quarter primarily due to other income of $1.1 million related to bank owned life insurance proceeds coupled with an increase in income from equity investments and other one-time adjustments. Other income increased $1.2 million, or 32 percent, over the prior year first quarter primarily due to the current quarter proceeds from bank owned life insurance.

    Non-interest Expense Summary

      Three Months ended   $ Change from
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Dec 31,
    2024
      Mar 31,
    2024
    Compensation and employee benefits $ 91,443   81,600   85,789   9,843     5,654  
    Occupancy and equipment   12,294   11,589   11,883   705     411  
    Advertising and promotions   4,144   3,725   3,983   419     161  
    Data processing   9,138   9,145   9,159   (7 )   (21 )
    Other real estate owned and foreclosed assets   63   30   25   33     38  
    Regulatory assessments and insurance   5,534   5,890   7,761   (356 )   (2,227 )
    Intangibles amortization   3,270   3,613   2,760   (343 )   510  
    Other expenses   25,432   25,373   30,483   59     (5,051 )
    Total non-interest expense $ 151,318   140,965   151,843   10,353     (525 )
                             

    Total non-interest expense of $151 million for the current quarter increased $10.4 million, or 7 percent, over the prior quarter and decreased $525 thousand, or 35 basis points, over the prior year first quarter. Compensation and employee benefits of $91.4 million increased by $9.8 million, or 12 percent, over the prior quarter and was primarily attributable to increased performance-related compensation. Compensation and employee benefits increased $5.6 million, or 7 percent, from the prior year first quarter and was primarily driven by annual salary increases and increases in staffing levels from prior year acquisitions. Regulatory assessment and insurance expense of $5.5 million decreased $2.2 million from the prior year first quarter as a result of adjustments to the FDIC special assessment.

    Other expenses of $25.4 million increased $59 thousand, or 23 basis points, from the prior quarter. Other expenses decreased $5.1 million, or 17 percent, from the prior year first quarter and was primarily driven by a decrease in acquisition-related expense. Acquisition-related expense was $587 thousand in the current quarter compared to $491 thousand in the prior quarter and $5.7 million in the prior year first quarter. The current quarter other expenses included $1.2 million of gain from the sale of a former branch facility compared to a $2.1 million gain in the prior quarter and a $989 thousand gain in the prior year first quarter.

    Federal and State Income Tax Expense

    Tax expense during the first quarter of 2025 was $8.9 million, a decrease of $2.8 million, or 24 percent, compared to the prior quarter and an increase of $5.2 million, or 138 percent, from the prior year first quarter. The effective tax rate in the current quarter was 14.1 percent compared to 16.0 percent in the prior quarter. The lower tax expense and lower effective tax rate in the current quarter compared to the prior quarter was the result of a combination of higher federal income tax credits and a decrease in income before income tax expense.

    Efficiency Ratio
    The efficiency ratio was 65.49 percent in the current quarter compared to 60.50 percent in the prior quarter and 74.41 percent in the prior year first quarter. The increase from the prior quarter was principally driven by the decrease in net interest income combined with an increase in non-interest expense. The decrease from the prior year first quarter was principally due to the increase in net interest income.

    Forward-Looking Statements  
    This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about the Company’s plans, objectives, expectations and intentions that are not historical facts, and other statements identified by words such as “expects,” “anticipates,” “will,” “intends,” “plans,” “believes,” “should,” “projects,” “seeks,” “estimates” or other comparable words or phrases of a future or forward-looking nature. These forward-looking statements are based on current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s control. In addition, these forward-looking statements are based on assumptions that are subject to change. The following factors, among others, could cause actual results to differ materially from the anticipated results (express or implied) or other expectations in the forward-looking statements, including those made in this news release:

    • risks associated with lending and potential adverse changes in the credit quality of the Company’s loan portfolio;
    • changes in monetary and fiscal policies, including interest rate policies of the Federal Reserve Board, which could adversely affect the Company’s net interest income and margin, the fair value of its financial instruments, profitability, and stockholders’ equity;
    • legislative or regulatory changes, including increased FDIC insurance rates and assessments, changes in the review and regulation of bank mergers, or increased banking and consumer protection regulations, that may adversely affect the Company’s business and strategies;
    • risks related to overall economic conditions, including the impact on the economy of an uncertain interest rate environment, inflationary pressures and the potential for significant changes in economic and trade policies in the new administration;
    • risks to the Company’s business and the business of the Company’s customers arising from current or future tariffs or other trade restrictions, labor or supply chain issues, change in labor force, or geopolitical instability, including the wars in Ukraine and the Middle East;
    • risks associated with the Company’s ability to negotiate, complete, and successfully integrate any pending or future acquisitions;
    • costs or difficulties related to the completion and integration of pending or future acquisitions;
    • impairment of the goodwill recorded by the Company in connection with acquisitions, which may have an adverse impact on earnings and capital;
    • reduction in demand for banking products and services, whether as a result of changes in customer behavior, economic conditions, banking environment, or competition;
    • deterioration of the reputation of banks and the financial services industry, which could adversely affect the Company’s ability to obtain and maintain customers;
    • changes in the competitive landscape, including as may result from new market entrants or further consolidation in the financial services industry, resulting in the creation of larger competitors with greater financial resources;
    • risks presented by public stock market volatility, which could adversely affect the market price of the Company’s common stock and the ability to raise additional capital or grow through acquisitions;
    • risks associated with dependence on the Chief Executive Officer, the senior management team and the Presidents of Glacier Bank’s divisions;
    • material failure, potential interruption or breach in security of the Company’s systems or changes in technology which could expose the Company to cybersecurity risks, fraud, system failures, or direct liabilities;
    • risks related to natural disasters, including droughts, fires, floods, earthquakes, pandemics, and other unexpected events;
    • success in managing risks involved in any of the foregoing; and
    • effects of any reputational damage to the Company resulting from any of the foregoing.

    The Company does not undertake any obligation to publicly correct or update any forward-looking statement if it later becomes aware that actual results are likely to differ materially from those expressed in such forward-looking statement.

    Conference Call Information
    A conference call for investors is scheduled for 11:00 a.m. Eastern Time on Friday, April 25, 2025. Please note that our conference call host no longer offers a general dial-in number. Investors who would like to join the call may now register by following this link to obtain dial-in instructions: https://register-conf.media-server.com/register/BI3016c4b5b4bd4b0aac8f022e74f4c1d4. To participate via the webcast, log on to: https://edge.media-server.com/mmc/p/ejk9q5pb

    About Glacier Bancorp, Inc.
    Glacier Bancorp, Inc. (NYSE: GBCI), a member of the Russell 2000® and the S&P MidCap 400® indices, is the parent company for Glacier Bank and its Bank divisions located across its eight state Western U.S. footprint: Altabank (American Fork, UT), Bank of the San Juans (Durango, CO), Citizens Community Bank (Pocatello, ID), Collegiate Peaks Bank (Buena Vista, CO), First Bank of Montana (Lewistown, MT), First Bank of Wyoming (Powell, WY), First Community Bank Utah (Layton, UT), First Security Bank (Bozeman, MT), First Security Bank of Missoula (Missoula, MT), First State Bank (Wheatland, WY), Glacier Bank (Kalispell, MT), Heritage Bank of Nevada (Reno, NV), Mountain West Bank (Coeur d’Alene, ID), The Foothills Bank (Yuma, AZ), Valley Bank (Helena, MT), Western Security Bank (Billings, MT), and Wheatland Bank (Spokane, WA).

    CONTACT: Randall M. Chesler, CEO
    (406) 751-4722
    Ron J. Copher, CFO
    (406) 751-7706
    Glacier Bancorp, Inc.
    Unaudited Condensed Consolidated Statements of Financial Condition
               
    (Dollars in thousands, except per share data) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
    Assets          
    Cash on hand and in banks $ 322,253     268,746     232,064  
    Interest bearing cash deposits   659,232     579,662     556,596  
    Cash and cash equivalents   981,485     848,408     788,660  
    Debt securities, available-for-sale   4,172,312     4,245,205     4,629,073  
    Debt securities, held-to-maturity   3,261,575     3,294,847     3,451,583  
    Total debt securities   7,433,887     7,540,052     8,080,656  
    Loans held for sale, at fair value   40,523     33,060     27,035  
    Loans receivable   17,218,518     17,261,849     16,732,502  
    Allowance for credit losses   (210,400 )   (206,041 )   (198,779 )
    Loans receivable, net   17,008,118     17,055,808     16,533,723  
    Premises and equipment, net   411,095     411,968     379,826  
    Right-of-use assets, net   54,441     56,252     63,447  
    Other real estate owned and foreclosed assets   1,153     1,164     891  
    Accrued interest receivable   103,992     99,262     106,063  
    Deferred tax asset   122,942     138,955     161,327  
    Intangibles, net   47,911     51,182     46,046  
    Goodwill   1,051,318     1,051,318     1,023,762  
    Non-marketable equity securities   88,134     99,669     111,129  
    Bank-owned life insurance   191,044     189,849     186,625  
    Other assets   322,836     326,040     312,980  
    Total assets $ 27,858,879     27,902,987     27,822,170  
    Liabilities          
    Non-interest bearing deposits $ 6,100,548     6,136,709     6,055,069  
    Interest bearing deposits   14,533,502     14,410,285     14,372,454  
    Securities sold under agreements to repurchase   1,849,070     1,777,475     1,540,008  
    FHLB advances   1,520,000     1,800,000     2,140,157  
    Other borrowed funds   82,443     83,341     88,814  
    Subordinated debentures   133,145     133,105     132,984  
    Accrued interest payable   30,231     33,626     32,584  
    Other liabilities   322,332     304,592     349,393  
    Total liabilities   24,571,271     24,679,133     24,711,463  
    Commitments and Contingent Liabilities            
    Stockholders’ Equity          
    Preferred shares, $0.01 par value per share, 1,000,000 shares authorized, none issued or outstanding            
    Common stock, $0.01 par value per share, 234,000,000 shares authorized   1,135     1,134     1,134  
    Paid-in capital   2,449,311     2,448,758     2,443,584  
    Retained earnings – substantially restricted   1,100,273     1,083,258     1,038,294  
    Accumulated other comprehensive loss   (263,111 )   (309,296 )   (372,305 )
    Total stockholders’ equity   3,287,608     3,223,854     3,110,707  
    Total liabilities and stockholders’ equity $ 27,858,879     27,902,987     27,822,170  
                       
    Glacier Bancorp, Inc.
    Unaudited Condensed Consolidated Statements of Operations
     
      Three Months ended
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
    Interest Income          
    Investment securities $ 45,646   50,381   56,218
    Residential real estate loans   24,275   23,960   20,764
    Commercial loans   197,388   199,260   181,472
    Consumer and other loans   22,616   23,435   20,948
    Total interest income   289,925   297,036   279,402
    Interest Expense          
    Deposits   62,865   67,079   67,196
    Securities sold under agreements to repurchase   13,733   14,822   12,598
    Federal Home Loan Bank advances   20,719   21,848   4,249
    FRB Bank Term Funding       27,097
    Other borrowed funds   402   348   344
    Subordinated debentures   2,227   1,496   1,438
    Total interest expense   99,946   105,593   112,922
    Net Interest Income   189,979   191,443   166,480
    Provision for credit losses   7,814   8,534   8,249
    Net interest income after provision for credit losses   182,165   182,909   158,231
    Non-Interest Income          
    Service charges and other fees   18,818   20,322   18,563
    Miscellaneous loan fees and charges   4,664   4,541   4,362
    Gain on sale of loans   4,311   3,926   3,362
    Gain on sale of securities       16
    Other income   4,849   2,760   3,686
    Total non-interest income   32,642   31,549   29,989
    Non-Interest Expense          
    Compensation and employee benefits   91,443   81,600   85,789
    Occupancy and equipment   12,294   11,589   11,883
    Advertising and promotions   4,144   3,725   3,983
    Data processing   9,138   9,145   9,159
    Other real estate owned and foreclosed assets   63   30   25
    Regulatory assessments and insurance   5,534   5,890   7,761
    Intangibles amortization   3,270   3,613   2,760
    Other expenses   25,432   25,373   30,483
    Total non-interest expense   151,318   140,965   151,843
    Income Before Income Taxes   63,489   73,493   36,377
    Federal and state income tax expense   8,921   11,739   3,750
    Net Income $ 54,568   61,754   32,627
                 
    Glacier Bancorp, Inc.
    Average Balance Sheets
       
      Three Months ended
      March 31, 2025   December 31, 2024
    (Dollars in thousands) Average
    Balance
      Interest &
    Dividends
      Average
    Yield/
    Rate
      Average
    Balance
      Interest &
    Dividends
      Average
    Yield/
    Rate
    Assets                      
    Residential real estate loans $ 1,885,497   $ 24,275   5.15 %   $ 1,885,146   $ 23,960   5.08 %
    Commercial loans 1   14,091,210     198,921   5.73 %     14,059,864     200,956   5.69 %
    Consumer and other loans   1,302,687     22,616   7.04 %     1,324,341     23,435   7.04 %
    Total loans 2   17,279,394     245,812   5.77 %     17,269,351     248,351   5.72 %
    Tax-exempt debt securities 3   1,604,851     13,936   3.47 %     1,615,474     14,501   3.59 %
    Taxable debt securities 4, 5   6,946,562     33,598   1.93 %     7,314,265     38,189   2.09 %
    Total earning assets   25,830,807     293,346   4.61 %     26,199,090     301,041   4.57 %
    Goodwill and intangibles   1,100,801             1,104,362        
    Non-earning assets   847,855             888,404        
    Total assets $ 27,779,463           $ 28,191,856        
    Liabilities                      
    Non-interest bearing deposits $ 5,989,490   $   %   $ 6,343,443   $   %
    NOW and DDA accounts   5,525,976     15,065   1.11 %     5,491,451     15,768   1.14 %
    Savings accounts   2,861,675     5,159   0.73 %     2,824,126     5,316   0.75 %
    Money market deposit accounts   2,849,470     13,526   1.93 %     2,878,415     14,232   1.97 %
    Certificate accounts   3,152,198     29,075   3.74 %     3,174,923     31,716   3.97 %
    Total core deposits   20,378,809     62,825   1.25 %     20,712,358     67,032   1.29 %
    Wholesale deposits 6   3,600     40   4.53 %     3,654     47   4.95 %
    Repurchase agreements   1,842,773     13,733   3.02 %     1,866,705     14,821   3.16 %
    FHLB advances   1,744,000     20,719   4.75 %     1,800,000     21,848   4.75 %
    Subordinated debentures and other borrowed funds   216,073     2,629   4.94 %     216,874     1,845   3.38 %
    Total funding liabilities   24,185,255     99,946   1.68 %     24,599,591     105,593   1.71 %
    Other liabilities   326,764             369,700        
    Total liabilities   24,512,019             24,969,291        
    Stockholders’ Equity                      
    Stockholders’ equity   3,267,444             3,222,565        
    Total liabilities and stockholders’ equity $ 27,779,463           $ 28,191,856        
    Net interest income (tax-equivalent)     $ 193,400           $ 195,448    
    Net interest spread (tax-equivalent)         2.93 %           2.86 %
    Net interest margin (tax-equivalent)         3.04 %           2.97 %

    ______________________________

    1 Includes tax effect of $1.5 million and $1.7 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2025 and December 31, 2024, respectively.
    2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
    3 Includes tax effect of $1.7 million and $2.1 million on tax-exempt debt securities income for the three months ended March 31, 2025 and December 31, 2024, respectively.
    4 Includes interest income of $6.1 million and $9.2 million on average interest-bearing cash balances of $559.5 million and $759.7 million for the three months ended March 31, 2025 and December 31, 2024, respectively.
    5 Includes tax effect of $150 thousand and $203 thousand on federal income tax credits for the three months ended March 31, 2025 and December 31, 2024, respectively.
    6 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
       
    Glacier Bancorp, Inc.
    Average Balance Sheets (continued)
       
      Three Months ended
      March 31, 2025   March 31, 2024
    (Dollars in thousands) Average
    Balance
      Interest &
    Dividends
      Average
    Yield/
    Rate
      Average
    Balance
      Interest &
    Dividends
      Average
    Yield/
    Rate
    Assets                      
    Residential real estate loans $ 1,885,497   $ 24,275   5.15 %   $ 1,747,184   $ 20,764   4.75 %
    Commercial loans 1   14,091,210     198,921   5.73 %     13,513,426     183,045   5.45 %
    Consumer and other loans   1,302,687     22,616   7.04 %     1,283,388     20,948   6.56 %
    Total loans 2   17,279,394     245,812   5.77 %     16,543,998     224,757   5.46 %
    Tax-exempt debt securities 3   1,604,851     13,936   3.47 %     1,720,370     15,157   3.52 %
    Taxable debt securities 4, 5   6,946,562     33,598   1.93 %     8,176,974     43,477   2.13 %
    Total earning assets   25,830,807     293,346   4.61 %     26,441,342     283,391   4.31 %
    Goodwill and intangibles   1,100,801             1,051,954        
    Non-earning assets   847,855             611,550        
    Total assets $ 27,779,463           $ 28,104,846        
    Liabilities                      
    Non-interest bearing deposits $ 5,989,490   $   %   $ 5,966,546   $   %
    NOW and DDA accounts   5,525,976     15,065   1.11 %     5,275,703     15,918   1.21 %
    Savings accounts   2,861,675     5,159   0.73 %     2,900,649     5,655   0.78 %
    Money market deposit accounts   2,849,470     13,526   1.93 %     2,948,294     14,393   1.96 %
    Certificate accounts   3,152,198     29,075   3.74 %     3,000,713     31,175   4.18 %
    Total core deposits   20,378,809     62,825   1.25 %     20,091,905     67,141   1.34 %
    Wholesale deposits 6   3,600     40   4.53 %     3,965     55   5.50 %
    Repurchase agreements   1,842,773     13,733   3.02 %     1,513,397     12,598   3.35 %
    FHLB advances   1,744,000     20,719   4.75 %     350,754     4,249   4.79 %
    FRB Bank Term Funding         %     2,483,077     27,097   4.39 %
    Subordinated debentures and other borrowed funds   216,073     2,629   4.94 %     218,271     1,782   3.28 %
    Total funding liabilities   24,185,255     99,946   1.68 %     24,661,369     112,922   1.84 %
    Other liabilities   326,764             356,554        
    Total liabilities   24,512,019             25,017,923        
    Stockholders’ Equity                      
    Stockholders’ equity   3,267,444             3,086,923        
    Total liabilities and stockholders’ equity $ 27,779,463           $ 28,104,846        
    Net interest income (tax-equivalent)     $ 193,400           $ 170,469    
    Net interest spread (tax-equivalent)         2.93 %           2.47 %
    Net interest margin (tax-equivalent)         3.04 %           2.59 %

    ______________________________

    1 Includes tax effect of $1.5 million and $1.6 million on tax-exempt municipal loan and lease income for the three months ended March 31, 2025 and 2024, respectively.
    2 Total loans are gross of the allowance for credit losses, net of unearned income and include loans held for sale. Non-accrual loans were included in the average volume for the entire period.
    3 Includes tax effect of $1.7 million and $2.2 million on tax-exempt debt securities income for the three months ended March 31, 2025 and 2024, respectively.
    4 Includes interest income of $6.1 million and $15.3 million on average interest-bearing cash balances of $559.5 million and $1.12 billion for the three months ended March 31, 2025 and 2024, respectively.
    5 Includes tax effect of $150 thousand and $215 thousand on federal income tax credits for the three months ended March 31, 2025 and 2024, respectively.
    6 Wholesale deposits include brokered deposits classified as NOW, DDA, money market deposit and certificate accounts with contractual maturities.
       

    Glacier Bancorp, Inc.
    Loan Portfolio by Regulatory Classification

      Loans Receivable, by Loan Type   % Change from
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Dec 31,
    2024
      Mar 31,
    2024
    Custom and owner occupied construction $ 233,584     $ 242,844     $ 273,835     (4)%   (15)%
    Pre-sold and spec construction   200,921       191,926       223,294     5 %   (10)%
    Total residential construction   434,505       434,770       497,129     %   (13)%
    Land development   177,448       197,369       215,828     (10)%   (18)%
    Consumer land or lots   197,553       187,024       188,635     6 %   5 %
    Unimproved land   115,528       113,532       103,032     2 %   12 %
    Developed lots for operative builders   64,782       61,661       47,591     5 %   36 %
    Commercial lots   95,574       99,243       92,748     (4)%   3 %
    Other construction   714,151       693,461       915,782     3 %   (22)%
    Total land, lot, and other construction   1,365,036       1,352,290       1,563,616     1 %   (13)%
    Owner occupied   3,182,589       3,197,138       3,057,348     %   4 %
    Non-owner occupied   4,054,107       4,053,996       3,920,696     %   3 %
    Total commercial real estate   7,236,696       7,251,134       6,978,044     %   4 %
    Commercial and industrial   1,392,365       1,395,997       1,371,201     %   2 %
    Agriculture   1,016,081       1,024,520       929,420     (1)%   9 %
    First lien   2,499,494       2,481,918       2,276,638     1 %   10 %
    Junior lien   85,343       76,303       51,579     12 %   65 %
    Total 1-4 family   2,584,837       2,558,221       2,328,217     1 %   11 %
    Multifamily residential   874,071       895,242       881,117     (2)%   (1)%
    Home equity lines of credit   989,043       1,005,783       947,652     (2)%   4 %
    Other consumer   188,388       209,457       223,566     (10)%   (16)%
    Total consumer   1,177,431       1,215,240       1,171,218     (3)%   1 %
    States and political subdivisions   1,001,058       983,601       848,454     2 %   18 %
    Other   176,961       183,894       191,121     (4)%   (7)%
    Total loans receivable, including loans held for sale   17,259,041       17,294,909       16,759,537     %   3 %
    Less loans held for sale 1   (40,523 )     (33,060 )     (27,035 )   23 %   50 %
    Total loans receivable $ 17,218,518     $ 17,261,849     $ 16,732,502     %   3 %

    ______________________________

    1 Loans held for sale are primarily first lien 1-4 family loans.
       
    Glacier Bancorp, Inc.
    Credit Quality Summary by Regulatory Classification
                   
       

    Non-performing Assets, by Loan Type

      Non-
    Accrual
    Loans
      Accruing
    Loans 90
    Days
    or More Past
    Due
      Other real estate
    owned and foreclosed assets
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Mar 31,
    2025
      Mar 31,
    2025
      Mar 31,
    2025
    Custom and owner occupied construction $ 194   198   210   194    
    Pre-sold and spec construction   2,896   2,132   1,049   2,133   763  
    Total residential construction   3,090   2,330   1,259   2,327   763  
    Land development   935   966   28   935    
    Consumer land or lots   173   78   144   173    
    Developed lots for operative builders   531   531   608     531  
    Commercial lots   47   47   2,205     47  
    Total land, lot and other construction   1,686   1,622   2,985   1,108   578  
    Owner occupied   3,601   2,979   1,501   3,073   96   432
    Non-owner occupied   2,235   2,235   8,853   1,582     653
    Total commercial real estate   5,836   5,214   10,354   4,655   96   1,085
    Commercial and Industrial   12,367   2,069   1,698   11,640   727  
    Agriculture   2,382   2,335   2,855   2,090   292  
    First lien   8,752   9,053   2,930   6,796   1,956  
    Junior lien   296   315   69   296    
    Total 1-4 family   9,048   9,368   2,999   7,092   1,956  
    Multifamily residential   400   389   395   400    
    Home equity lines of credit   3,479   3,465   1,892   2,726   753  
    Other consumer   1,003   955   927   858   77   68
    Total consumer   4,482   4,420   2,819   3,584   830   68
    Other   47   39   61     47  
    Total $ 39,338   27,786   25,425   32,896   5,289   1,153
                             

    Glacier Bancorp, Inc.
    Credit Quality Summary by Regulatory Classification (continued)

      Accruing 30-89 Days Delinquent Loans,  by Loan Type   % Change from
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Dec 31,
    2024
      Mar 31,
    2024
    Custom and owner occupied construction $ 786   $ 969   $ 4,784   (19)%   (84)%
    Pre-sold and spec construction       564     1,181   (100)%   (100)%
    Total residential construction   786     1,533     5,965   (49)%   (87)%
    Land development       1,450     59   (100)%   (100)%
    Consumer land or lots   1,026     402     332   155 %   209 %
    Unimproved land   32     36     575   (11)%   (94)%
    Developed lots for operative builders       214       (100)%   n/m
    Commercial lots   189         1,225   n/m   (85)%
    Other construction           1,248   n/m   (100)%
    Total land, lot and other construction   1,247     2,102     3,439   (41)%   (64)%
    Owner occupied   3,786     2,867     2,991   32 %   27 %
    Non-owner occupied   346     5,037     18,118   (93)%   (98)%
    Total commercial real estate   4,132     7,904     21,109   (48)%   (80)%
    Commercial and industrial   5,358     6,194     14,806   (13)%   (64)%
    Agriculture   5,731     744     3,922   670 %   46 %
    First lien   14,826     6,326     5,626   134 %   164 %
    Junior lien   1,023     214     145   378 %   606 %
    Total 1-4 family   15,849     6,540     5,771   142 %   175 %
    Home equity lines of credit   6,993     3,731     3,668   87 %   91 %
    Other consumer   1,824     1,775     1,948   3 %   (6)%
    Total consumer   8,817     5,506     5,616   60 %   57 %
    States and political subdivisions   3,220           n/m   n/m
    Other   1,318     1,705     1,795   (23)%   (27)%
    Total $ 46,458   $ 32,228   $ 62,423   44 %   (26)%

    ______________________________

    n/m – not measurable

    Glacier Bancorp, Inc.
    Credit Quality Summary by Regulatory Classification (continued)
               
      Net Charge-Offs (Recoveries), Year-to-Date
    Period Ending, By Loan Type
      Charge-Offs   Recoveries
    (Dollars in thousands) Mar 31,
    2025
      Dec 31,
    2024
      Mar 31,
    2024
      Mar 31,
    2025
      Mar 31,
    2025
    Pre-sold and spec construction $     (4 )   (4 )    
    Pre-sold and spec construction $     (4 )   (4 )    
    Land development   (341 )   1,095     (1 )     341
    Consumer land or lots   (3 )   (22 )   (1 )     3
    Unimproved land       1,338          
    Commercial lots       319          
    Total land, lot and other construction   (344 )   2,730     (2 )     344
    Owner occupied   (1 )   (73 )   (3 )     1
    Non-owner occupied   (6 )   2     (1 )     6
    Total commercial real estate   (7 )   (71 )   (4 )     7
    Commercial and industrial   92     1,422     328     421   329
    Agriculture   (1 )   64     68       1
    First lien   (69 )   32     (4 )     69
    Junior lien   (5 )   (65 )   (5 )     5
    Total 1-4 family   (74 )   (33 )   (9 )     74
    Home equity lines of credit   (20 )   69     5       20
    Other consumer   276     1,078     251     331   55
    Total consumer   256     1,147     256     331   75
    Other   1,873     8,643     2,439     3,145   1,272
    Total $ 1,795     13,898     3,072     3,897   2,102
                               

    Visit our website at www.glacierbancorp.com 

    The MIL Network

  • MIL-OSI: IBEX Limited to Announce Third Quarter 2025 Financial Results on May 8th, 2025

    Source: GlobeNewswire (MIL-OSI)

    WASHINGTON, April 24, 2025 (GLOBE NEWSWIRE) — IBEX Limited (“ibex”) (Nasdaq: IBEX), a leading global provider of business process outsourcing (BPO) and customer engagement technology solutions, today announced it will report third quarter 2025 financial results after the market close on Thursday, May 8, 2025. Management will host a conference call and webcast to discuss the Company’s financial results, recent developments, and business outlook at 4:30 p.m. ET.

    About ibex
    ibex delivers innovative business process outsourcing (BPO), smart digital marketing, online acquisition technology, and end-to-end customer engagement solutions to help companies acquire, engage and retain valuable customers. Today, ibex operates a global CX delivery center model consisting of approximately 31 operations facilities around the world, while deploying next generation technology to drive superior customer experiences for many of the world’s leading companies across retail, e-commerce, healthcare, fintech, utilities and logistics.

    ibex leverages its diverse global team of over 31,000 employees together with industry-leading technology, including the AI-powered ibex Wave iX solutions suite, to manage nearly 175 million critical customer interactions, adding over $2.2B in lifetime customer revenue each year and driving a truly differentiated customer experience. To learn more, visit our website at ibex.co and connect with us on LinkedIn.

    Investor Contact
    Michael Darwal
    ibex
    Michael.Darwal@ibex.co

    Media Contact
    Dan Burris
    ibex
    Daniel.Burris@ibex.co

    The MIL Network

  • MIL-OSI: Heritage Commerce Corp Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    SAN JOSE, Calif., April 24, 2025 (GLOBE NEWSWIRE) — Heritage Commerce Corp (Nasdaq: HTBK), (the “Company”), the holding company for Heritage Bank of Commerce (the “Bank”) today announced its financial results for the first quarter of 2025. All data are unaudited.

    QUARTERLY HIGHLIGHTS:

    Net Income Earnings Per Share Pre-Provision Net
    Revenue (“PPNR”)
    (1)
    Fully Tax Equivalent
    (“FTE”) Net Interest
    Margin(1)
    Efficiency Ratio(1) Tangible Book Value
    Per Share
    (1)
               
    $11.6 million $0.19 $16.6 million 3.39% 63.96% $8.48
               


    CEO COMMENTARY:

    “We delivered a solid quarter of performance with a 9% increase in our level of profitability from the prior quarter,” said Clay Jones, President and Chief Executive Officer. “While our balance sheet trends reflected the seasonally low loan demand and deposit outflows in the first quarter, we generated a higher level of profitability due to improved net interest margin, strong expense control, and an improvement in our asset quality. We also redeployed some of our excess liquidity to purchase new investment securities, which we expect will have a positive impact on our net interest income and net interest margin going forward. Our longer-term trends remain positive as well, with notable improvement in many areas compared to the first quarter of last year, including a 14% increase in net income and increases in the annualized returns on average assets and average equity.”

    “While economic uncertainty has increased over the past few months, we still expect to deliver solid financial performance in 2025 as we continue to capitalize on our market position to assist new clients that have been impacted by dislocation and disruption in our markets resulting from bank failures and acquisitions. We believe that we will continue to see positive trends in areas such as net interest margin, loan and deposit growth, and expense management, which should lead to strong financial performance for our shareholders as we move through the year,” said Mr. Jones.

    LINKED-QUARTER BASIS YEAR-OVER-YEAR
    FINANCIAL HIGHLIGHTS:
     
    • Net income of $11.6 million and earnings per share of $0.19, up 9% and 12%, from $10.6 million and $0.17, respectively
    • Total revenue of $46.1 million, a decrease of 1%, or $314,000, compared to a decrease in noninterest expense of 3%, or $848,000
    • PPNR(1) of $16.6 million, up $534,000 from $16.1 million
    • Effective tax rate of 28.8%, compared to 27.9%
    • Net income of $11.6 million and earnings per share of $0.19, up 14% and 12%, from $10.2 million and $0.17, respectively
    • Total revenue of $46.1 million, an increase of 9%, or $3.9 million, compared to an increase in noninterest expense of 7%, or $1.9 million
    • PPNR(1) of $16.6 million, up $2.0 million from $14.6 million
    • Effective tax rate of 28.8%, compared to 29.5%
    FINANCIAL CONDITION:  
    • Loans held-for-investment (“HFI”) remained relatively flat at $3.5 billion
    • Total deposits of $4.7 billion, down $136.8 million, or 3%
    • Loan to deposit ratio of 74.45%, up from 72.45%
    • Total shareholders’ equity of $696 million, up $6.5 million
    • Increase in loans HFI of $150.8 million, or 5%
    • Increase in total deposits of $238.6 million, or 5%
    • Loan to deposit ratio of 74.45%, down from 75.06%
    • Increase in total shareholders’ equity of $19.9 million
    CREDIT QUALITY:  
    • Nonperforming assets (“NPAs”) to total assets of 0.11%, compared to 0.14%
    • Classified assets to total assets of 0.73%, compared to 0.74%
    • NPAs to total assets of 0.11%, compared to 0.15%
    • Classified assets to total assets of 0.73%, compared to 0.67%
    KEY PERFORMANCE METRICS:  
    • FTE net interest margin(1) of 3.39%, an increase from 3.32%
    • Return on average tangible assets(1) and on tangible common equity(1) of 0.88% and 9.09%, compared to 0.78% and 8.25%, respectively
    • Efficiency ratio(1) of 63.96%, compared to 65.35%
    • Common equity tier 1 capital ratio of 13.6%, compared to 13.4%
    • Total capital ratio of 15.9%, compared to 15.6%
    • Tangible common equity ratio(1) of 9.78%, an increase of 4% from 9.43%
    • Tangible book value per share(1) of $8.48, compared to $8.41
    • FTE net interest margin(1) of 3.39%, an increase from 3.31%
    • Return on average tangible assets(1) and on tangible common equity(1) of 0.88% and 9.09%, compared to 0.82% and 8.24%, respectively
    • Efficiency ratio(1) of 63.96%, compared to 65.34%
    • Common equity tier 1 capital ratio of 13.6%, compared to 13.4%
    • Total capital ratio of 15.9%, compared to 15.6%
    • Tangible common equity ratio(1) of 9.78%, a decrease of 1% from 9.85%
    • Tangible book value per share(1) of $8.48, compared to $8.17
       

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” later in this press release.

    Results of Operations:

    Net interest income totaled $43.4 million for the first quarter of 2025, a slight decrease of $235,000, or 1%, compared to $43.6 million for the fourth quarter of 2024. The decrease was primarily due to two fewer accrual days during the quarter from the prior linked quarter, together with a lower average balance on interest earning assets, which was largely offset by a decrease in rates paid on deposits and a decrease of higher cost deposit balances. Net interest income increased $3.9 million, or 10%, compared to $39.5 million for the first quarter of 2024. The increase was primarily due to growth in average earning asset balances, partially offset by an increase in interest-bearing deposit balances.

    The FTE net interest margin(1) was 3.39% for the first quarter of 2025, an increase over 3.32% for the fourth quarter of 2024 primarily due to lower rates paid on customer deposits, an increase in the average balances of securities and loans, and higher average yields on securities, partially offset by a decrease in the average balance of noninterest-bearing demand deposits and a lower average yield on overnight funds. The FTE net interest margin(1) increased from 3.31% for the first quarter of 2024 primarily due to lower rates paid on customer deposits, an increase in the average balances of loans, and higher average yields on securities and loans, and an increase in the average balance of deposits resulting in a higher average balance of overnight funds, partially offset by a lower average yield on overnight funds.

    We recorded a provision for credit losses on loans of $274,000 for the first quarter of 2025, compared to a $1.3 million provision for credit losses on loans for the fourth quarter of 2024, and a $184,000 provision for credit losses on loans for the first quarter of 2024.

    Total noninterest income remained relatively flat at $2.7 million for the first quarter of 2025, compared to $2.8 million for the fourth quarter of 2024, and $2.6 million for the first quarter of 2024.

    Total revenue, which is defined as net interest income before provision for credit losses on loans plus noninterest income, decreased $314,000, or 1%, to $46.1 million for the first quarter of 2025, compared to $46.4 million for the fourth quarter of 2024, and increased $3.9 million, or 9%, from $42.1 million for the first quarter of 2024.

    Total noninterest expense for the first quarter of 2025 decreased to $29.5 million, compared to $30.3 million for the fourth quarter of 2024, primarily due to nonrecurring personnel related expenses and legal fees of approximately $1.1 million, and higher professional fees and homeowner association vendor payments during the fourth quarter of 2024. Total noninterest expense increased compared to $27.5 million for the first quarter of 2024, primarily due to higher salaries and employee benefits, professional fees, and information technology related expenses.

    Income tax expense was $4.7 million for the first quarter of 2025, compared to $4.1 million for the fourth quarter of 2024, and $4.3 million for the first quarter of 2024. The effective tax rate for the first quarter of 2025 was 28.8%, compared to 27.9% for the fourth quarter of 2024, and 29.5% for the first quarter of 2024.

    Net income was $11.6 million, or $0.19 per average diluted common share, for the first quarter of 2025, compared to $10.6 million, or $0.17 per average diluted common share, for the fourth quarter of 2024, and $10.2 million, or $0.17 per average diluted common share, for the first quarter of 2024.

    For the first quarter of 2025, the Company’s PPNR(1), which is defined as total revenue less noninterest expense, was $16.6 million, compared to $16.1 million for the fourth quarter of 2024, and $14.6 million for the first quarter of 2024.

    The efficiency ratio(1) improved to 63.96% for the first quarter of 2025, compared to 65.35% for the fourth quarter of 2024, as a result of lower noninterest expense, partially offset by lower total revenue. The efficiency ratio(1) improved from 65.34% for the first quarter of 2024, primarily due to higher total revenue, partially offset by higher noninterest expense during the first quarter of 2025.

    Full time equivalent employees were 350 at March 31, 2025 compared to 355 at December 31, 2024, and 351 at March 31, 2024.

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” later in this press release.

    Financial Condition and Capital Management:

    Total assets decreased 2% to $5.5 billion at March 31, 2025, compared to $5.6 billion at December 31, 2024, primarily due to a decrease in deposits resulting in a decrease in overnight funds. Total assets increased 5% from $5.3 billion at March 31, 2024, primarily due to an increase in deposits resulting in an increase in overnight funds, and an increase in loans.

    Investment securities available-for-sale (at fair value) totaled $371.0 million at March 31, 2025, compared to $256.3 million at December 31, 2024, and $404.5 million at March 31, 2024. The pre-tax unrealized loss on the securities available-for-sale portfolio was $3.1 million, or $2.3 million net of taxes, which equaled less than 1% of total shareholders’ equity at March 31, 2025.

    During the first quarter of 2025, the Company purchased $62.3 million of agency mortgage-backed securities, $44.8 million of collateralized mortgage obligations, and $44.7 million of U.S. Treasury securities, for total purchases of $151.8 million in the available-for-sale portfolio. Securities purchased had a book yield of 4.86% and an average life of 4.34 years.

    Investment securities held-to-maturity (at amortized cost, net of allowance for credit losses of $12,000), totaled $576.7 million at March 31, 2025, compared to $590.0 million at December 31, 2024, and $636.2 million at March 31, 2024. The fair value of the securities held-to-maturity portfolio was $496.3 million at March 31, 2025. The pre-tax unrecognized loss on the securities held-to-maturity portfolio was $80.5 million, or $56.7 million net of taxes, which equaled 8.1% of total shareholders’ equity at March 31, 2025.

    The unrealized and unrecognized losses in both the available-for-sale and held-to-maturity portfolios were due to higher interest rates at March 31, 2025 compared to when the securities were purchased. The issuers are of high credit quality and all principal amounts are expected to be repaid when the securities mature. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline.

    Loans HFI, net of deferred costs and fees, remained flat at $3.5 billion at March 31, 2025 as compared to December 31, 2024, and increased $150.8 million, or 5%, from $3.3 billion at March 31, 2024. Loans HFI, excluding residential mortgages, remained flat at $3.0 billion at March 31, 2025 as compared to December 31, 2024, and increased $175.5 million, or 6%, from $2.8 billion at March 31, 2024.

    Commercial and industrial line utilization was 31% at March 31, 2025, compared to 34% at December 31, 2024, and 28% at March 31, 2024. Commercial real estate (“CRE”) loans totaled $2.0 billion at March 31, 2025, of which 31% were owner occupied and 69% were investor CRE loans. Owner occupied CRE loans totaled 31% at December 31, 2024 and 32% at March 31, 2024. At March 31, 2025, approximately 24% of the Company’s loan portfolio consisted of floating interest rate loans, compared to 26% at both December 31, 2024 and March 31, 2024.

    At March 31, 2025, paydowns and maturities of investment securities and fixed interest rate loans maturing within one year totaled $395.6 million.

    Total deposits decreased $136.8 million, or 3%, to $4.7 billion at March 31, 2025, compared to $4.8 billion at December 31, 2024 due to deposits outflows we typically see in the first quarter, and increased $238.6 million, or 5% from $4.4 billion at March 31, 2024.

    The following table shows the Company’s deposit types as a percentage of total deposits at the dates indicated:

                       
        March 31,     December 31,     March 31,  
    DEPOSITS TYPE % TO TOTAL DEPOSITS   2025     2024     2024  
    Demand, noninterest-bearing   24 %   25 %   28 %
    Demand, interest-bearing   20 %   19 %   21 %
    Savings and money market   29 %   28 %   25 %
    Time deposits — under $250   1 %   1 %   1 %
    Time deposits — $250 and over   5 %   4 %   4 %
    ICS/CDARS — interest-bearing demand,                  
    money market and time deposits   21 %   23 %   21 %
    Total deposits   100 %   100 %   100 %
                       

    The loan to deposit ratio was 74.45% at March 31, 2025, compared to 72.45% at December 31, 2024, and 75.06% at March 31, 2024.

    The Company’s total available liquidity and borrowing capacity was $3.2 billion at March 31, 2025, compared to $3.3 billion at December 31, 2024, and $3.0 billion at March 31, 2024.

    Total shareholders’ equity was $696.2 million at March 31, 2025, compared to $689.7 million at December 31, 2024, and $676.3 million at March 31, 2024. The increase in shareholders’ equity at March 31, 2025 is primarily a function of net income and the decrease in the total accumulated other comprehensive loss, partially offset by dividends to stockholders.

    Total accumulated other comprehensive loss of $6.8 million at March 31, 2025 was comprised of unrealized losses on securities available-for-sale of $2.3 million, a split dollar insurance contracts liability of $2.4 million, a supplemental executive retirement plan liability of $2.2 million, and a $49,000 unrealized gain on interest-only strip from SBA loans.

    The Company’s consolidated capital ratios exceeded regulatory guidelines and the Bank’s capital ratios exceeded regulatory guidelines under the prompt corrective action (“PCA”) regulatory guidelines for a well-capitalized financial institution, and the Basel III minimum regulatory requirements at March 31, 2025.

    Tangible book value per share(1) was $8.48 at March 31, 2025, compared to $8.41 at December 31, 2024, and $8.17 at March 31, 2024.

    In July 2024, the Company announced that its Board of Directors adopted a share repurchase program under which the Company is authorized to repurchase up to $15 million of the Company’s shares of its issued and outstanding common stock. The Company did not repurchase any of its common stock during 2024 or the first quarter of 2025.

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” later in this press release.

    Credit Quality:

    The provision for credit losses on loans totaled $274,000 for the first quarter of 2025, compared to a $1.3 million provision for credit losses on loans for the fourth quarter of 2024, and a provision for credit losses on loans of $184,000 for the first quarter of 2024. Net charge-offs totaled $965,000 for the first quarter of 2025, compared to $197,000 for the fourth quarter of 2024, and $254,000 for the first quarter of 2024. More than half of the net charge-offs for the first quarter of 2025 related to one commercial contractor that was previously reserved for during the fourth quarter of 2024. The remaining charge-offs were related to five different small businesses in a variety of industries. Four loans were underwritten using a scored small business product whose underwriting guidelines have been tightened since the loans were made. 

    The allowance for credit losses on loans (“ACLL”) at March 31, 2025 was $48.3 million, or 1.38% of total loans, representing 765% of total nonperforming loans. The ACLL at December 31, 2024 was $49.0 million, or 1.40% of total loans, representing 638% of total nonperforming loans. The ACLL at March 31, 2024 was $47.9 million, or 1.44% of total loans, representing 608% of total nonperforming loans. The reduction to the allowance for credit on losses on loans reflects our credit assessment and economic factors.

    NPAs were $6.3 million at March 31, 2025, compared to $7.7 million at December 31, 2024, and $7.9 million at March 31, 2024. There were no CRE loans in NPAs at March 31, 2025, December 31, 2024, or March 31, 2024. There were no foreclosed assets on the balance sheet at March 31, 2025, December 31, 2024, or March 31, 2024. There were no Shared National Credits (“SNCs”) or material purchased participations included in NPAs or total loans at March 31, 2025, December 31, 2024, or March 31, 2024.

    Classified assets totaled $40.0 million, or 0.73% of total assets, at March 31, 2025, compared to $41.7 million, or 0.74% of total assets, at December 31, 2024, and $35.4 million, or 0.67% of total assets, at March 31, 2024. The increase in classified assets from March 31, 2024 was primarily the result of one downgraded owner occupied CRE credit, and a number of residential related loans downgraded during the fourth quarter of 2024. The loans are well-collateralized and we do not anticipate to incur losses as a result of the downgrades of these loans.

    Heritage Commerce Corp, a bank holding company established in October 1997, is the parent company of Heritage Bank of Commerce, established in 1994 and headquartered in San Jose, CA with full-service branches in Danville, Fremont, Gilroy, Hollister, Livermore, Los Altos, Los Gatos, Morgan Hill, Oakland, Palo Alto, Pleasanton, Redwood City, San Francisco, San Jose, San Mateo, San Rafael, and Walnut Creek. Heritage Bank of Commerce is an SBA Preferred Lender. Bay View Funding, a subsidiary of Heritage Bank of Commerce, is based in San Jose, CA and provides business-essential working capital factoring financing to various industries throughout the United States. For more information, please visit www.heritagecommercecorp.com. The contents of our website are not incorporated into, and do not form a part of, this release or of our filings with the Securities and Exchange Commission.

    Reclassifications

    During the first quarter of 2025, we reclassified Federal Home Loan Bank (“FHLB”) and Federal Reserve Bank (“FRB”) stock dividends from interest income to noninterest income and the related average asset balances were reclassified from interest earning assets to other assets on the “Net Interest Income and Net Interest Margin” tables. The amounts for the prior periods were reclassified to conform to the current presentation. These reclassifications did not affect previously reported net income or shareholders’ equity.

    Non-GAAP Financial Measures

    Financial results are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. Management believes these non-GAAP financial measures are common in the banking industry, and may enhance comparability for peer comparison purposes. These non-GAAP financial measures should be supplemental to primary GAAP financial measures and should not be read in isolation or relied upon as a substitute for primary GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures is presented in the tables at the end of this press release under “Reconciliation of Non-GAAP Financial Measures.”

    Forward-Looking Statement Disclaimer

    Certain matters discussed in this press release constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are inherently uncertain in that they reflect plans and expectations for future events. These statements may include, among other things, those relating to the Company’s future financial performance, plans and objectives regarding future events, expectations regarding changes in interest rates and market conditions, projected cash flows of our investment securities portfolio, the performance of our loan portfolio, estimated net interest income resulting from a shift in interest rates, expectation of high credit quality issuers ability to repay, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events. Any statements that reflect our belief about, confidence in, or expectations for future events, performance or condition should be considered forward-looking statements. Readers should not construe these statements as assurances of a given level of performance, nor as promises that we will take actions that we currently expect to take. All statements are subject to various risks and uncertainties, many of which are outside our control and some of which may fall outside our ability to predict or anticipate. Accordingly, our actual results may differ materially from our projected results, and we may take actions or experience events that we do not currently expect. Risks and uncertainties that could cause our financial performance to differ materially from our goals, plans, expectations and projections expressed in forward-looking statements include those set forth in our filings with the Securities and Exchange Commission, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, and include: (i) risks of geographic concentration of our client base, our loans, and the collateral securing our loans, as those clients and assets may be particularly subject to natural disasters and to events and conditions that directly or indirectly affect those regions, including the particular risks of natural disasters (including earthquakes, fires, and flooding) and other events that disproportionately affect that region; (ii) cybersecurity risks that may affect us directly or may impact us indirectly by virtue of their effects on our clients, markets or vendors, including our ability to identify and address cybersecurity risks, including those posed by the increasing use of artificial intelligence, such as data security breaches, “denial of service” attacks, “hacking” and identity theft affecting us, our clients, and our third-party vendors and service providers; (iii) domestic, international and multinational political events that have accompanied or that may in the future accompany or result from recent political changes, particularly including sociopolitical events and conditions that result from political conflicts and law enforcement activities that may adversely affect our markets or our clients; (iv) media items and consumer confidence as those factors affect our clients’ confidence in the banking system generally and in our bank specifically; (v) adequacy of our risk management framework, disclosure controls and procedures and internal control over financial reporting; (vi) market, geographic and sociopolitical factors that arise by virtue of the fact that we operate primarily in the general San Francisco Bay Area of Northern California; (vii) the effects of recent wildfires affecting Southern California, which have affected certain clients and certain loans secured by mortgages in Los Angeles County, and which are affecting or may, in the future, affect other clients in those and other markets throughout California; (viii) factors that affect our liquidity and our ability to meet client demands for withdrawals from deposit accounts and undrawn lines of credit, including our cash on hand and the availability of funds from our own lines of credit; (ix) factors that affect the value and liquidity of our investment portfolios, particularly the values of securities available-for-sale; (x) our ability to estimate accurately, and to establish adequate reserves against, the risk of loss associated with our loan and lease portfolios and our factoring business; (xi) inflationary pressures and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans to clients, whether held in the portfolio or in the secondary market; (xii) increased capital requirements for our continual growth or as imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; (xiii) operational issues stemming from, and/or capital spending necessitated by, the potential need to adapt to industry changes in information technology systems, on which we are highly dependent; (xiv) events that affect our ability to attract, recruit, and retain qualified officers and other personnel to implement our strategic plan, and that enable current and future personnel to protect and develop our relationships with clients, and to promote our business, results of operations and growth prospects; (xv) the expense and uncertain resolution of litigation matters whether occurring in the ordinary course of business or otherwise, particularly including but not limited to the effects of recent and ongoing developments in California labor and employment laws, regulations and court decisions; and (xvi) our success in managing the risks involved in the foregoing factors.

    Member FDIC

    For additional information, contact:
    Debbie Reuter
    EVP, Corporate Secretary
    Direct: (408) 494-4542
    Debbie.Reuter@herbank.com

                                 
        For the Quarter Ended:   Percent Change From:  
    CONSOLIDATED INCOME STATEMENTS      March 31,       December 31,       March 31,       December 31,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024    2024   
    Interest income   $ 61,832   $ 64,043   $ 56,960   (3 ) % 9   %
    Interest expense     18,472     20,448     17,458   (10 ) % 6   %
    Net interest income before provision                            
    for credit losses on loans     43,360     43,595     39,502   (1 ) % 10   %
    Provision for credit losses on loans     274     1,331     184   (79 ) % 49   %
    Net interest income after provision                            
    for credit losses on loans     43,086     42,264     39,318   2   % 10   %
    Noninterest income:                            
    Service charges and fees on deposit                            
    accounts     892     885     877   1   % 2   %
    FHLB and FRB stock dividends     590     590     591   0   % 0   %
    Increase in cash surrender value of                            
    life insurance     538     528     518   2   % 4   %
    Gain on sales of SBA loans     98     125     178   (22 ) % (45 ) %
    Servicing income     82     77     90   6   % (9 ) %
    Termination fees     87     18     13   383   % 569   %
    Other     409     552     371   (26 ) % 10   %
    Total noninterest income     2,696     2,775     2,638   (3 ) % 2   %
    Noninterest expense:                            
    Salaries and employee benefits     16,575     16,976     15,509   (2 ) % 7   %
    Occupancy and equipment     2,534     2,495     2,443   2   % 4   %
    Professional fees     1,580     1,711     1,327   (8 ) % 19   %
    Other     8,767     9,122     8,257   (4 ) % 6   %
    Total noninterest expense     29,456     30,304     27,536   (3 ) % 7   %
    Income before income taxes     16,326     14,735     14,420   11   % 13   %
    Income tax expense     4,700     4,114     4,254   14   % 10   %
    Net income   $ 11,626   $ 10,621   $ 10,166   9   % 14   %
                                 
    PER COMMON SHARE DATA                            
    (unaudited)                              
    Basic earnings per share   $ 0.19   $ 0.17   $ 0.17   12   % 12   %
    Diluted earnings per share   $ 0.19   $ 0.17   $ 0.17   12   % 12   %
    Weighted average shares outstanding – basic     61,479,579     61,320,505     61,186,623   0   % 0   %
    Weighted average shares outstanding – diluted     61,708,361     61,679,735     61,470,552   0   % 0   %
    Common shares outstanding at period-end     61,611,121     61,348,095     61,253,625   0   % 1   %
    Dividend per share   $ 0.13   $ 0.13   $ 0.13   0   % 0   %
    Book value per share   $ 11.30   $ 11.24   $ 11.04   1   % 2   %
    Tangible book value per share(1)   $ 8.48   $ 8.41   $ 8.17   1   % 4   %
                                 
    KEY PERFORMANCE METRICS                                 
    (in $000’s, unaudited)                                 
    Annualized return on average equity     6.81 %   6.16 %   6.08 % 11   % 12   %
    Annualized return on average tangible                            
    common equity(1)     9.09 %   8.25 %   8.24 % 10   % 10   %
    Annualized return on average assets     0.85 %   0.75 %   0.79 % 13   % 8   %
    Annualized return on average tangible assets(1)     0.88 %   0.78 %   0.82 % 13   % 7   %
    Net interest margin (FTE)(1)     3.39 %   3.32 %   3.31 % 2   % 2   %
    Total revenue   $ 46,056   $ 46,370   $ 42,140   (1 ) % 9   %
    Pre-provision net revenue(1)   $ 16,600   $ 16,066   $ 14,604   3   % 14   %
    Efficiency ratio(1)     63.96 %   65.35 %   65.34 % (2 ) % (2 ) %
                                 
    AVERAGE BALANCES                                
    (in $000’s, unaudited)                                 
    Average assets   $ 5,559,896   $ 5,607,840   $ 5,178,636   (1 ) % 7   %
    Average tangible assets(1)   $ 5,386,001   $ 5,433,439   $ 5,002,597   (1 ) % 8   %
    Average earning assets   $ 5,188,317   $ 5,235,986   $ 4,810,505   (1 ) % 8   %
    Average loans held-for-sale   $ 2,290   $ 2,260   $ 2,749   1   % (17 ) %
    Average loans held-for-investment   $ 3,429,014   $ 3,388,729   $ 3,297,240   1   % 4   %
    Average deposits   $ 4,717,517   $ 4,771,491   $ 4,360,150   (1 ) % 8   %
    Average demand deposits – noninterest-bearing   $ 1,167,330   $ 1,222,393   $ 1,177,078   (5 ) % (1 ) %
    Average interest-bearing deposits   $ 3,550,187   $ 3,549,098   $ 3,183,072   0   % 12   %
    Average interest-bearing liabilities   $ 3,589,872   $ 3,588,755   $ 3,222,603   0   % 11   %
    Average equity   $ 692,733   $ 686,263   $ 672,292   1   % 3   %
    Average tangible common equity(1)   $ 518,838   $ 511,862   $ 496,253   1   % 5   %
                                 

    (1)This is a non-GAAP financial measure as defined and discussed under Non-GAAP Financial Measures” in this press release.

                                     
        For the Quarter Ended:  
    CONSOLIDATED INCOME STATEMENTS      March 31,       December 31,       September 30,      June 30,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Interest income   $ 61,832   $ 64,043   $ 60,852   $ 58,489   $ 56,960  
    Interest expense     18,472     20,448     21,523     19,622     17,458  
    Net interest income before provision                                
    for credit losses on loans     43,360     43,595     39,329     38,867     39,502  
    Provision for credit losses on loans     274     1,331     153     471     184  
    Net interest income after provision                                
    for credit losses on loans     43,086     42,264     39,176     38,396     39,318  
    Noninterest income:                                
    Service charges and fees on deposit                                
    accounts     892     885     908     891     877  
    FHLB and FRB stock dividends     590     590     586     588     591  
    Increase in cash surrender value of                                
    life insurance     538     528     530     521     518  
    Gain on sales of SBA loans     98     125     94     76     178  
    Servicing income     82     77     108     90     90  
    Termination fees     87     18     46     100     13  
    Gain on proceeds from company-owned                                
    life insurance                 219      
    Other     409     552     554     379     371  
    Total noninterest income     2,696     2,775     2,826     2,864     2,638  
    Noninterest expense:                                
    Salaries and employee benefits     16,575     16,976     15,673     15,794     15,509  
    Occupancy and equipment     2,534     2,495     2,599     2,689     2,443  
    Professional fees     1,580     1,711     1,306     1,072     1,327  
    Other     8,767     9,122     7,977     8,633     8,257  
    Total noninterest expense     29,456     30,304     27,555     28,188     27,536  
    Income before income taxes     16,326     14,735     14,447     13,072     14,420  
    Income tax expense     4,700     4,114     3,940     3,838     4,254  
    Net income   $ 11,626   $ 10,621   $ 10,507   $ 9,234   $ 10,166  
                                     
    PER COMMON SHARE DATA                                
    (unaudited)                                    
    Basic earnings per share   $ 0.19   $ 0.17   $ 0.17   $ 0.15   $ 0.17  
    Diluted earnings per share   $ 0.19   $ 0.17   $ 0.17   $ 0.15   $ 0.17  
    Weighted average shares outstanding – basic     61,479,579     61,320,505     61,295,877     61,279,914     61,186,623  
    Weighted average shares outstanding – diluted     61,708,361     61,679,735     61,546,157     61,438,088     61,470,552  
    Common shares outstanding at period-end     61,611,121     61,348,095     61,297,344     61,292,094     61,253,625  
    Dividend per share   $ 0.13   $ 0.13   $ 0.13   $ 0.13   $ 0.13  
    Book value per share   $ 11.30   $ 11.24   $ 11.18   $ 11.08   $ 11.04  
    Tangible book value per share(1)   $ 8.48   $ 8.41   $ 8.33   $ 8.22   $ 8.17  
                                     
    KEY PERFORMANCE METRICS                                   
    (in $000’s, unaudited)                                     
    Annualized return on average equity     6.81 %   6.16 %   6.14 %   5.50 %   6.08 %
    Annualized return on average tangible                                
    common equity(1)     9.09 %   8.25 %   8.27 %   7.43 %   8.24 %
    Annualized return on average assets     0.85 %   0.75 %   0.78 %   0.71 %   0.79 %
    Annualized return on average tangible assets(1)     0.88 %   0.78 %   0.81 %   0.74 %   0.82 %
    Net interest margin (FTE)(1)     3.39 %   3.32 %   3.15 %   3.23 %   3.31 %
    Total revenue   $ 46,056   $ 46,370   $ 42,155   $ 41,731   $ 42,140  
    Pre-provision net revenue(1)   $ 16,600   $ 16,066   $ 14,600   $ 13,543   $ 14,604  
    Efficiency ratio(1)     63.96 %   65.35 %   65.37 %   67.55 %   65.34 %
                                     
    AVERAGE BALANCES                                     
    (in $000’s, unaudited)                                     
    Average assets   $ 5,559,896   $ 5,607,840   $ 5,352,067   $ 5,213,171   $ 5,178,636  
    Average tangible assets(1)   $ 5,386,001   $ 5,433,439   $ 5,177,114   $ 5,037,673   $ 5,002,597  
    Average earning assets   $ 5,188,317   $ 5,235,986   $ 4,980,082   $ 4,840,670   $ 4,810,505  
    Average loans held-for-sale   $ 2,290   $ 2,260   $ 1,493   $ 1,503   $ 2,749  
    Average loans held-for-investment   $ 3,429,014   $ 3,388,729   $ 3,359,647   $ 3,328,358   $ 3,297,240  
    Average deposits   $ 4,717,517   $ 4,771,491   $ 4,525,946   $ 4,394,545   $ 4,360,150  
    Average demand deposits – noninterest-bearing   $ 1,167,330   $ 1,222,393   $ 1,172,304   $ 1,127,145   $ 1,177,078  
    Average interest-bearing deposits   $ 3,550,187   $ 3,549,098   $ 3,353,642   $ 3,267,400   $ 3,183,072  
    Average interest-bearing liabilities   $ 3,589,872   $ 3,588,755   $ 3,393,264   $ 3,306,972   $ 3,222,603  
    Average equity   $ 692,733   $ 686,263   $ 680,404   $ 675,108   $ 672,292  
    Average tangible common equity(1)   $ 518,838   $ 511,862   $ 505,451   $ 499,610   $ 496,253  
                                     

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

                                 
        End of Period:   Percent Change From:  
    CONSOLIDATED BALANCE SHEETS      March 31,       December 31,       March 31,       December 31,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024    2024   
    ASSETS                            
    Cash and due from banks   $ 44,281     $ 29,864     $ 32,543     48   % 36   %
    Other investments and interest-bearing deposits                            
    in other financial institutions     700,769       938,259       508,816     (25 ) % 38   %
    Securities available-for-sale, at fair value     370,976       256,274       404,474     45   % (8 ) %
    Securities held-to-maturity, at amortized cost     576,718       590,016       636,249     (2 ) % (9 ) %
    Loans – held-for-sale – SBA, including deferred costs     1,884       2,375       1,946     (21 ) % (3 ) %
    Loans – held-for-investment:                            
    Commercial     489,241       531,350       452,231     (8 ) % 8   %
    Real estate:                            
    CRE – owner occupied     616,825       601,636       585,031     3   % 5   %
    CRE – non-owner occupied     1,363,275       1,341,266       1,271,184     2   % 7   %
    Land and construction     136,106       127,848       129,712     6   % 5   %
    Home equity     119,138       127,963       122,794     (7 ) % (3 ) %
    Multifamily     284,510       275,490       269,263     3   % 6   %
    Residential mortgages     465,330       471,730       490,035     (1 ) % (5 ) %
    Consumer and other     12,741       14,837       16,439     (14 ) % (22 ) %
    Loans     3,487,166       3,492,120       3,336,689     0   % 5   %
    Deferred loan fees, net     (268 )     (183 )     (587 )   46   % (54 ) %
    Total loans – held-for-investment, net of deferred fees     3,486,898       3,491,937       3,336,102     0   % 5   %
    Allowance for credit losses on loans     (48,262 )     (48,953 )     (47,888 )   (1 ) % 1   %
    Loans, net     3,438,636       3,442,984       3,288,214     0   % 5   %
    Company-owned life insurance     81,749       81,211       80,007     1   % 2   %
    Premises and equipment, net     9,772       10,140       9,986     (4 ) % (2 ) %
    Goodwill     167,631       167,631       167,631     0   % 0   %
    Other intangible assets     5,986       6,439       8,074     (7 ) % (26 ) %
    Accrued interest receivable and other assets     115,853       119,813       118,134     (3 ) % (2 ) %
    Total assets   $ 5,514,255     $ 5,645,006     $ 5,256,074     (2 ) % 5   %
                                 
    LIABILITIES AND SHAREHOLDERS’ EQUITY                            
    Liabilities:                            
    Deposits:                            
    Demand, noninterest-bearing   $ 1,128,593     $ 1,214,192     $ 1,242,059     (7 ) % (9 ) %
    Demand, interest-bearing     949,068       936,587       925,100     1   % 3   %
    Savings and money market     1,353,293       1,325,923       1,124,900     2   % 20   %
    Time deposits – under $250     37,592       38,988       38,105     (4 ) % (1 ) %
    Time deposits – $250 and over     213,357       206,755       200,739     3   % 6   %
    ICS/CDARS – interest-bearing demand, money market                            
    and time deposits     1,001,365       1,097,586       913,757     (9 ) % 10   %
    Total deposits     4,683,268       4,820,031       4,444,660     (3 ) % 5   %
    Subordinated debt, net of issuance costs     39,691       39,653       39,539     0   % 0   %
    Accrued interest payable and other liabilities     95,106       95,595       95,579     (1 ) % 0   %
    Total liabilities     4,818,065       4,955,279       4,579,778     (3 ) % 5   %
                                 
    Shareholders’ Equity:                            
    Common stock     511,596       510,070       507,578     0   % 1   %
    Retained earnings     191,401       187,762       181,306     2   % 6   %
    Accumulated other comprehensive loss     (6,807 )     (8,105 )     (12,588 )   (16 ) % (46 ) %
    Total shareholders’ equity     696,190       689,727       676,296     1   % 3   %
    Total liabilities and shareholders’ equity   $ 5,514,255     $ 5,645,006     $ 5,256,074     (2 ) % 5   %
                                 
                                   
        End of Period:
    CONSOLIDATED BALANCE SHEETS      March 31,       December 31,       September 30,      June 30,       March 31, 
    (in $000’s, unaudited)   2025   2024   2024   2024   2024
    ASSETS                              
    Cash and due from banks   $ 44,281     $ 29,864     $ 49,722     $ 37,497     $ 32,543  
    Other investments and interest-bearing deposits                              
    in other financial institutions     700,769       938,259       906,588       610,763       508,816  
    Securities available-for-sale, at fair value     370,976       256,274       237,612       273,043       404,474  
    Securities held-to-maturity, at amortized cost     576,718       590,016       604,193       621,178       636,249  
    Loans – held-for-sale – SBA, including deferred costs     1,884       2,375       1,649       1,899       1,946  
    Loans – held-for-investment:                              
    Commercial     489,241       531,350       481,266       477,929       452,231  
    Real estate:                              
    CRE – owner occupied     616,825       601,636       602,062       594,504       585,031  
    CRE – non-owner occupied     1,363,275       1,341,266       1,310,578       1,283,323       1,271,184  
    Land and construction     136,106       127,848       125,761       125,374       129,712  
    Home equity     119,138       127,963       124,090       126,562       122,794  
    Multifamily     284,510       275,490       273,103       268,968       269,263  
    Residential mortgages     465,330       471,730       479,524       484,809       490,035  
    Consumer and other     12,741       14,837       14,179       18,758       16,439  
    Loans     3,487,166       3,492,120       3,410,563       3,380,227       3,336,689  
    Deferred loan fees, net     (268 )     (183 )     (327 )     (434 )     (587 )
    Total loans – held-for-investment, net of deferred fees     3,486,898       3,491,937       3,410,236       3,379,793       3,336,102  
    Allowance for credit losses on loans     (48,262 )     (48,953 )     (47,819 )     (47,954 )     (47,888 )
    Loans, net     3,438,636       3,442,984       3,362,417       3,331,839       3,288,214  
    Company-owned life insurance     81,749       81,211       80,682       80,153       80,007  
    Premises and equipment, net     9,772       10,140       10,398       10,310       9,986  
    Goodwill     167,631       167,631       167,631       167,631       167,631  
    Other intangible assets     5,986       6,439       6,966       7,521       8,074  
    Accrued interest receivable and other assets     115,853       119,813       123,738       121,190       118,134  
    Total assets   $ 5,514,255     $ 5,645,006     $ 5,551,596     $ 5,263,024     $ 5,256,074  
                                   
    LIABILITIES AND SHAREHOLDERS’ EQUITY                              
    Liabilities:                              
    Deposits:                              
    Demand, noninterest-bearing   $ 1,128,593     $ 1,214,192     $ 1,272,139     $ 1,187,320     $ 1,242,059  
    Demand, interest-bearing     949,068       936,587       913,910       928,246       925,100  
    Savings and money market     1,353,293       1,325,923       1,309,676       1,126,520       1,124,900  
    Time deposits – under $250     37,592       38,988       39,060       39,046       38,105  
    Time deposits – $250 and over     213,357       206,755       196,945       203,886       200,739  
    ICS/CDARS – interest-bearing demand, money market                              
    and time deposits     1,001,365       1,097,586       997,803       959,592       913,757  
    Total deposits     4,683,268       4,820,031       4,729,533       4,444,610       4,444,660  
    Other short-term borrowings                              
    Subordinated debt, net of issuance costs     39,691       39,653       39,615       39,577       39,539  
    Accrued interest payable and other liabilities     95,106       95,595       97,096       99,638       95,579  
    Total liabilities     4,818,065       4,955,279       4,866,244       4,583,825       4,579,778  
                                   
    Shareholders’ Equity:                              
    Common stock     511,596       510,070       509,134       508,343       507,578  
    Retained earnings     191,401       187,762       185,110       182,571       181,306  
    Accumulated other comprehensive loss     (6,807 )     (8,105 )     (8,892 )     (11,715 )     (12,588 )
    Total shareholders’ equity     696,190       689,727       685,352       679,199       676,296  
    Total liabilities and shareholders’ equity   $ 5,514,255     $ 5,645,006     $ 5,551,596     $ 5,263,024     $ 5,256,074  
                                   
                                 
        At or For the Quarter Ended:   Percent Change From:  
    CREDIT QUALITY DATA      March 31,       December 31,       March 31,       December 31,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024    2024   
    Nonaccrual loans – held-for-investment:                            
    Land and construction loans   $ 4,793   $ 5,874   $ 4,673   (18 ) % 3   %
    Home equity and other loans     927     290     120   220   % 673   %
    Commercial loans     324     1,014     1,127   (68 ) % (71 ) %
    CRE loans               N/A     N/A    
    Total nonaccrual loans – held-for-investment:     6,044     7,178     5,920   (16 ) % 2   %
    Loans over 90 days past due                            
    and still accruing     268     489     1,951   (45 ) % (86 ) %
    Total nonperforming loans     6,312     7,667     7,871   (18 ) % (20 ) %
    Foreclosed assets               N/A     N/A    
    Total nonperforming assets   $ 6,312   $ 7,667   $ 7,871   (18 ) % (20 ) %
    Net charge-offs during the quarter   $ 965   $ 197   $ 254   390   % 280   %
    Provision for credit losses on loans during the quarter   $ 274   $ 1,331   $ 184   (79 ) % 49   %
    Allowance for credit losses on loans   $ 48,262   $ 48,953   $ 47,888   (1 ) % 1   %
    Classified assets   $ 40,034   $ 41,661   $ 35,392   (4 ) % 13   %
    Allowance for credit losses on loans to total loans     1.38 %   1.40 %   1.44 % (1 ) % (4 ) %
    Allowance for credit losses on loans to total nonperforming loans     764.61 %   638.49 %   608.41 % 20   % 26   %
    Nonperforming assets to total assets     0.11 %   0.14 %   0.15 % (21 ) % (27 ) %
    Nonperforming loans to total loans     0.18 %   0.22 %   0.24 % (18 ) % (25 ) %
    Classified assets to Heritage Commerce Corp                            
    Tier 1 capital plus allowance for credit losses on loans     7 %   7 %   6 % 0   % 17   %
    Classified assets to Heritage Bank of Commerce                            
    Tier 1 capital plus allowance for credit losses on loans     7 %   7 %   6 % 0   % 17   %
                                 
    OTHER PERIOD-END STATISTICS                                 
    (in $000’s, unaudited)                                 
    Heritage Commerce Corp:                            
    Tangible common equity (1)   $ 522,573   $ 515,657   $ 500,591   1   % 4   %
    Shareholders’ equity / total assets     12.63 %   12.22 %   12.87 % 3   % (2 ) %
    Tangible common equity / tangible assets (1)     9.78 %   9.43 %   9.85 % 4   % (1 ) %
    Loan to deposit ratio     74.45 %   72.45 %   75.06 % 3   % (1 ) %
    Noninterest-bearing deposits / total deposits     24.10 %   25.19 %   27.94 % (4 ) % (14 ) %
    Total capital ratio     15.9 %   15.6 %   15.6 % 2   % 2   %
    Tier 1 capital ratio     13.6 %   13.4 %   13.4 % 1   % 1   %
    Common Equity Tier 1 capital ratio     13.6 %   13.4 %   13.4 % 1   % 1   %
    Tier 1 leverage ratio     9.8 %   9.6 %   10.2 % 2   % (4 ) %
    Heritage Bank of Commerce:                            
    Tangible common equity / tangible assets (1)     10.15 %   9.79 %   10.22 % 4   % (1 ) %
    Total capital ratio     15.4 %   15.1 %   15.1 % 2   % 2   %
    Tier 1 capital ratio     14.1 %   13.9 %   13.9 % 1   % 1   %
    Common Equity Tier 1 capital ratio     14.1 %   13.9 %   13.9 % 1   % 1   %
    Tier 1 leverage ratio     10.2 %   10.0 %   10.6 % 2   % (4 ) %
                                 

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

                                     
        At or For the Quarter Ended:  
    CREDIT QUALITY DATA      March 31,       December 31,       September 30,      June 30,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Nonaccrual loans – held-for-investment:                                
    Land and construction loans   $ 4,793   $ 5,874   $ 5,862   $ 4,774   $ 4,673  
    Home equity and other loans     927     290     84     108     120  
    Commercial loans     324     1,014     752     900     1,127  
    CRE loans                      
    Total nonaccrual loans – held-for-investment:     6,044     7,178     6,698     5,782     5,920  
    Loans over 90 days past due                                
    and still accruing     268     489     460     248     1,951  
    Total nonperforming loans     6,312     7,667     7,158     6,030     7,871  
    Foreclosed assets                      
    Total nonperforming assets   $ 6,312   $ 7,667   $ 7,158   $ 6,030   $ 7,871  
    Net charge-offs during the quarter   $ 965   $ 197   $ 288   $ 405   $ 254  
    Provision for credit losses on loans during the quarter   $ 274   $ 1,331   $ 153   $ 471   $ 184  
    Allowance for credit losses on loans   $ 48,262   $ 48,953   $ 47,819   $ 47,954   $ 47,888  
    Classified assets   $ 40,034   $ 41,661   $ 32,609   $ 33,605   $ 35,392  
    Allowance for credit losses on loans to total loans     1.38 %   1.40 %   1.40 %   1.42 %   1.44 %
    Allowance for credit losses on loans to total nonperforming loans     764.61 %   638.49 %   668.05 %   795.26 %   608.41 %
    Nonperforming assets to total assets     0.11 %   0.14 %   0.13 %   0.11 %   0.15 %
    Nonperforming loans to total loans     0.18 %   0.22 %   0.21 %   0.18 %   0.24 %
    Classified assets to Heritage Commerce Corp                                
    Tier 1 capital plus allowance for credit losses on loans     7 %   7 %   6 %   6 %   6 %
    Classified assets to Heritage Bank of Commerce                                
    Tier 1 capital plus allowance for credit losses on loans     7 %   7 %   6 %   6 %   6 %
                                     
    OTHER PERIOD-END STATISTICS                                     
    (in $000’s, unaudited)                                     
    Heritage Commerce Corp:                                
    Tangible common equity (1)   $ 522,573   $ 515,657   $ 510,755   $ 504,047   $ 500,591  
    Shareholders’ equity / total assets     12.63 %   12.22 %   12.35 %   12.91 %   12.87 %
    Tangible common equity / tangible assets (1)     9.78 %   9.43 %   9.50 %   9.91 %   9.85 %
    Loan to deposit ratio     74.45 %   72.45 %   72.11 %   76.04 %   75.06 %
    Noninterest-bearing deposits / total deposits     24.10 %   25.19 %   26.90 %   26.71 %   27.94 %
    Total capital ratio     15.9 %   15.6 %   15.6 %   15.6 %   15.6 %
    Tier 1 capital ratio     13.6 %   13.4 %   13.4 %   13.4 %   13.4 %
    Common Equity Tier 1 capital ratio     13.6 %   13.4 %   13.4 %   13.4 %   13.4 %
    Tier 1 leverage ratio     9.8 %   9.6 %   10.0 %   10.2 %   10.2 %
    Heritage Bank of Commerce:                                
    Tangible common equity / tangible assets (1)     10.15 %   9.79 %   9.86 %   10.28 %   10.22 %
    Total capital ratio     15.4 %   15.1 %   15.1 %   15.1 %   15.1 %
    Tier 1 capital ratio     14.1 %   13.9 %   13.9 %   13.9 %   13.9 %
    Common Equity Tier 1 capital ratio     14.1 %   13.9 %   13.9 %   13.9 %   13.9 %
    Tier 1 leverage ratio     10.2 %   10.0 %   10.4 %   10.6 %   10.6 %
                                     

    (1)This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

                                       
        For the Quarter Ended   For the Quarter Ended  
        March 31, 2025   December 31, 2024  
                    Interest      Average               Interest      Average  
    NET INTEREST INCOME AND NET INTEREST MARGIN   Average   Income/   Yield/   Average   Income/   Yield/  
    (in $000’s, unaudited)   Balance   Expense   Rate   Balance   Expense   Rate  
    Assets:                                  
    Loans, core bank   $ 2,945,072       39,758     5.47 % $ 2,899,347     $ 39,852     5.47 %
    Prepayment fees           224     0.03 %         35     0.00 %
    Bay View Funding factored receivables     60,250       2,942     19.80 %   59,153       3,084     20.74 %
    Purchased residential mortgages     427,963       3,597     3.41 %   434,846       3,732     3.41 %
    Loan fair value mark / accretion     (1,981 )     181     0.02 %   (2,357 )     429     0.06 %
    Loans, gross (1)(2)     3,431,304       46,702     5.52 %   3,390,989       47,132     5.53 %
    Securities – taxable     876,092       5,559     2.57 %   800,174       4,475     2.22 %
    Securities – exempt from Federal tax (3)     30,480       275     3.66 %   30,570       274     3.57 %
    Other investments and interest-bearing deposits                                  
    in other financial institutions     850,441       9,354     4.46 %   1,014,253       12,220     4.79 %
    Total interest earning assets (3)     5,188,317       61,890     4.84 %   5,235,986       64,101     4.87 %
    Cash and due from banks     31,869                 32,569              
    Premises and equipment, net     10,007                 10,301              
    Goodwill and other intangible assets     173,895                 174,401              
    Other assets     155,808                 154,583              
    Total assets   $ 5,559,896               $ 5,607,840              
                                       
    Liabilities and shareholders’ equity:                                  
    Deposits:                                  
    Demand, noninterest-bearing   $ 1,167,330               $ 1,222,393              
                                       
    Demand, interest-bearing     944,375       1,438     0.62 %   906,581       1,452     0.64 %
    Savings and money market     1,323,038       8,073     2.47 %   1,339,397       9,090     2.70 %
    Time deposits – under $100     11,383       47     1.67 %   11,388       49     1.71 %
    Time deposits – $100 and over     234,421       2,129     3.68 %   234,446       2,310     3.92 %
    ICS/CDARS – interest-bearing demand, money market                                  
    and time deposits     1,036,970       6,248     2.44 %   1,057,286       7,009     2.64 %
    Total interest-bearing deposits     3,550,187       17,935     2.05 %   3,549,098       19,910     2.23 %
    Total deposits     4,717,517       17,935     1.54 %   4,771,491       19,910     1.66 %
                                       
    Short-term borrowings     18           0.00 %   28           0.00 %
    Subordinated debt, net of issuance costs     39,667       537     5.49 %   39,629       538     5.40 %
    Total interest-bearing liabilities     3,589,872       18,472     2.09 %   3,588,755       20,448     2.27 %
    Total interest-bearing liabilities and demand,                                  
    noninterest-bearing / cost of funds     4,757,202       18,472     1.57 %   4,811,148       20,448     1.69 %
    Other liabilities     109,961                 110,429              
    Total liabilities     4,867,163                 4,921,577              
    Shareholders’ equity     692,733                 686,263              
    Total liabilities and shareholders’ equity   $ 5,559,896               $ 5,607,840              
                                       
    Net interest income / margin (3)           43,418     3.39 %         43,653     3.32 %
    Less tax equivalent adjustment (3)           (58 )               (58 )      
    Net interest income         $ 43,360     3.39 %       $ 43,595     3.31 %
                                       

    (1)Includes loans held-for-sale. Nonaccrual loans are included in average balances.
    (2)Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $214,000 for the first quarter of 2025, compared to $167,000 for the fourth quarter of 2024. Prepayment fees totaled $224,000 for the first quarter of 2025, compared to $35,000 for the fourth quarter of 2024.
    (3)Reflects the FTE adjustment for Federal tax-exempt income based on a 21% tax rate. This is a non-GAAP financial measure as defined and discussed under “Non-GAAP FinanciaMeasures” in this press release.

                                       
        For the Quarter Ended   For the Quarter Ended  
        March 31, 2025   March 31, 2024  
                    Interest      Average               Interest      Average  
    NET INTEREST INCOME AND NET INTEREST MARGIN   Average   Income/   Yield/   Average   Income/   Yield/  
    (in $000’s, unaudited)   Balance   Expense   Rate   Balance   Expense   Rate  
    Assets:                                  
    Loans, core bank   $ 2,945,072     $ 39,758     5.47 % $ 2,795,351     $ 37,721     5.43 %
    Prepayment fees           224     0.03 %         24     0.00 %
    Bay View Funding factored receivables     60,250       2,942     19.80 %   53,511       2,838     21.33 %
    Purchased residential mortgages     427,963       3,597     3.41 %   454,240       3,788     3.35 %
    Loan fair value mark / accretion     (1,981 )     181     0.02 %   (3,113 )     229     0.03 %
    Loans, gross (1)(2)     3,431,304       46,702     5.52 %   3,299,989       44,600     5.44 %
    Securities – taxable     876,092       5,559     2.57 %   1,042,484       6,183     2.39 %
    Securities – exempt from Federal tax (3)     30,480       275     3.66 %   31,939       286     3.60 %
    Other investments and interest-bearing deposits                                  
    in other financial institutions     850,441       9,354     4.46 %   436,093       5,951     5.49 %
    Total interest earning assets (3)     5,188,317       61,890     4.84 %   4,810,505       57,020     4.77 %
    Cash and due from banks     31,869                 33,214              
    Premises and equipment, net     10,007                 10,015              
    Goodwill and other intangible assets     173,895                 176,039              
    Other assets     155,808                 148,863              
    Total assets   $ 5,559,896               $ 5,178,636              
                                       
    Liabilities and shareholders’ equity:                                  
    Deposits:                                  
    Demand, noninterest-bearing   $ 1,167,330               $ 1,177,078              
                                       
    Demand, interest-bearing     944,375       1,438     0.62 %   920,048       1,554     0.68 %
    Savings and money market     1,323,038       8,073     2.47 %   1,067,581       6,649     2.50 %
    Time deposits – under $100     11,383       47     1.67 %   10,945       42     1.54 %
    Time deposits – $100 and over     234,421       2,129     3.68 %   221,211       2,064     3.75 %
    ICS/CDARS – interest-bearing demand, money market                                  
    and time deposits     1,036,970       6,248     2.44 %   963,287       6,611     2.76 %
    Total interest-bearing deposits     3,550,187       17,935     2.05 %   3,183,072       16,920     2.14 %
    Total deposits     4,717,517       17,935     1.54 %   4,360,150       16,920     1.56 %
                                       
    Short-term borrowings     18           0.00 %   15           0.00 %
    Subordinated debt, net of issuance costs     39,667       537     5.49 %   39,516       538     5.48 %
    Total interest-bearing liabilities     3,589,872       18,472     2.09 %   3,222,603       17,458     2.18 %
    Total interest-bearing liabilities and demand,                                  
    noninterest-bearing / cost of funds     4,757,202       18,472     1.57 %   4,399,681       17,458     1.60 %
    Other liabilities     109,961                 106,663              
    Total liabilities     4,867,163                 4,506,344              
    Shareholders’ equity     692,733                 672,292              
    Total liabilities and shareholders’ equity   $ 5,559,896               $ 5,178,636              
                                       
    Net interest income / margin (3)           43,418     3.39 %         39,562     3.31 %
    Less tax equivalent adjustment (3)           (58 )               (60 )      
    Net interest income         $ 43,360     3.39 %       $ 39,502     3.30 %

    (1)Includes loans held-for-sale. Nonaccrual loans are included in average balances.
    (2)Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $214,000 for the first quarter of 2025, compared to $160,000 for the first quarter of 2024. Prepayment fees totaled $224,000 for the first quarter of 2025, compared to $24,000 for the first quarter of 2024.
    (3)Reflects the FTE adjustment for Federal tax-exempt income based on a 21% tax rate. This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” in this press release.

    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

    Management considers tangible book value per share as a useful measurement of the Company’s equity. The Company references the return on average tangible common equity and the return on average tangible assets as measurements of profitability.

    The following table summarizes components of the tangible book value per share at the dates indicated:

                                     
    TANGIBLE BOOK VALUE PER SHARE   March 31,    December 31,    September 30,   June 30,   March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Capital components:                                
    Total Equity (GAAP)   $ 696,190     $ 689,727     $ 685,352     $ 679,199     $ 676,296    
    Less: Preferred Stock                                
    Total Common Equity     696,190       689,727       685,352       679,199       676,296    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (5,986 )     (6,439 )     (6,966 )     (7,521 )     (8,074 )  
    Total Tangible Common Equity (non-GAAP)   $ 522,573     $ 515,657     $ 510,755     $ 504,047     $ 500,591    
                                     
    Common shares outstanding at period-end     61,611,121       61,348,095       61,297,344       61,292,094       61,253,625    
                                     
    Tangible book value per share (non-GAAP)   $ 8.48     $ 8.41     $ 8.33     $ 8.22     $ 8.17    
                                               

    The following tables summarize components of the annualized return on average tangible common equity and the annualized return on average tangible assets for the periods indicated:

                                     
    RETURN ON AVERAGE TANGIBLE COMMON   For the Quarter Ended:  
    EQUITY AND AVERAGE TANGIBLE COMMON ASSETS   March 31,    December 31,    September 30,   June 30,   March 31,   
    (in $000’s, unaudited)   2025   2024     2024    2024   2024  
    Net income   $ 11,626     $ 10,621     $ 10,507     $ 9,234     $ 10,166    
                                     
    Average tangible common equity components:                                
    Average Equity (GAAP)   $ 692,733     $ 686,263     $ 680,404     $ 675,108     $ 672,292    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (6,264 )     (6,770 )     (7,322 )     (7,867 )     (8,408 )  
    Total Average Tangible Common Equity (non-GAAP)   $ 518,838     $ 511,862     $ 505,451     $ 499,610     $ 496,253    
                                     
    Annualized return on average tangible common equity (non-GAAP)     9.09   %   8.25   %   8.27   %   7.43   %   8.24   %
                                     
    Average tangible assets components:                                
    Average Assets (GAAP)   $ 5,559,896     $ 5,607,840     $ 5,352,067     $ 5,213,171     $ 5,178,636    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (6,264 )     (6,770 )     (7,322 )     (7,867 )     (8,408 )  
    Total Average Tangible Assets (non-GAAP)   $ 5,386,001     $ 5,433,439     $ 5,177,114     $ 5,037,673     $ 5,002,597    
                                     
    Annualized return on average tangible assets (non-GAAP)     0.88   %   0.78   %   0.81   %   0.74   %   0.82   %
                                               

    Management reviews yields on certain asset categories and the net interest margin of the Company on an FTE basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. The following tables summarize components of FTE net interest income of the Company for the periods indicated:

                                     
        For the Quarter Ended:  
        March 31,    December 31,    September 30,    June 30,    March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Net interest income before                                
    credit losses on loans (GAAP)   $ 43,360   $ 43,595   $ 39,329   $ 38,867   $ 39,502  
    Tax-equivalent adjustment on securities –                                
    exempt from Federal tax     58     58     59     60     60  
    Net interest income, FTE (non-GAAP)   $ 43,418   $ 43,653   $ 39,388   $ 38,927   $ 39,562  
                                     
    Average balance of total interest earning assets   $ 5,188,317   $ 5,235,986   $ 4,980,082   $ 4,840,670   $ 4,810,505  
                                     
    Net interest margin (annualized net interest income divided by the                                
    average balance of total interest earnings assets) (GAAP)     3.39 %   3.31 %   3.14 %   3.23 %   3.30 %
                                     
    Net interest margin, FTE (annualized net interest income, FTE,                                
    divided by the average balance of total                                
    earnings assets) (non-GAAP)     3.39 %   3.32 %   3.15 %   3.23 %   3.31 %
                                     

    Management views its non-GAAP PPNR as a key metric for assessing the Company’s earnings power. The following table summarizes the components of PPNR for the periods indicated:

                                   
        For the Quarter Ended:
        March 31,    December 31,    September 30,   June 30,   March 31, 
    (in $000’s, unaudited)   2025   2024   2024   2024   2024
                                   
                                   
    Net interest income before credit losses on loans   $ 43,360     $ 43,595     $ 39,329     $ 38,867     $ 39,502  
    Noninterest income     2,696       2,775       2,826       2,864       2,638  
    Total revenue     46,056       46,370     $ 42,155     $ 41,731     $ 42,140  
    Less: Noninterest expense     (29,456 )     (30,304 )     (27,555 )     (28,188 )     (27,536 )
    PPNR (non-GAAP)   $ 16,600     $ 16,066     $ 14,600     $ 13,543     $ 14,604  
                                             

    The efficiency ratio is a non-GAAP financial measure, which is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income), and measures how much it costs to produce one dollar of revenue. The following tables summarize components of the efficiency ratio of the Company for the periods indicated:

                                     
        For the Quarter Ended:  
        March 31,    December 31,    September 30,   June 30,   March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Noninterest expense   $ 29,456   $ 30,304   $ 27,555   $ 28,188   $ 27,536  
                                     
    Net interest income before credit losses on loans   $ 43,360   $ 43,595   $ 39,329   $ 38,867   $ 39,502  
    Noninterest income     2,696     2,775     2,826     2,864     2,638  
    Total revenue   $ 46,056   $ 46,370   $ 42,155   $ 41,731   $ 42,140  
                                     
    Efficiency ratio (noninterest expense divided                                
    by total revenue) (non-GAAP)     63.96 %   65.35 %   65.37 %   67.55 %   65.34 %
                                     

    Management considers the tangible common equity ratio as a useful measurement of the Company’s and the Bank’s equity. The following table summarizes components of the tangible common equity to tangible assets ratio of the Company at the dates indicated:

                                     
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS   March 31,    December 31,    September 30,      June 30,       March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024   
    Capital components:                                
    Total Equity (GAAP)   $ 696,190     $ 689,727     $ 685,352     $ 679,199     $ 676,296    
    Less: Preferred Stock                                
    Total Common Equity     696,190       689,727       685,352       679,199       676,296    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (5,986 )     (6,439 )     (6,966 )     (7,521 )     (8,074 )  
    Total Tangible Common Equity (non-GAAP)   $ 522,573     $ 515,657     $ 510,755     $ 504,047     $ 500,591    
                                     
    Asset components:                                
    Total Assets (GAAP)   $ 5,514,255     $ 5,645,006     $ 5,551,596     $ 5,263,024     $ 5,256,074    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (5,986 )     (6,439 )     (6,966 )     (7,521 )     (8,074 )  
    Total Tangible Assets (non-GAAP)   $ 5,340,638     $ 5,470,936     $ 5,376,999     $ 5,087,872     $ 5,080,369    
                                     
    Tangible common equity / tangible assets (non-GAAP)     9.78   %   9.43   %   9.50   %   9.91   %   9.85   %
                                               

    The following table summarizes components of the tangible common equity to tangible assets ratio of the Bank at the dates indicated:

                                     
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS   March 31,    December 31,    September 30,      June 30,    March 31,   
    (in $000’s, unaudited)   2025   2024   2024   2024   2024  
    Capital components:                                
    Total Equity (GAAP)   $ 715,605     $ 709,379     $ 704,585     $ 697,964     $ 694,543    
    Less: Preferred Stock                                
    Total Common Equity     715,605       709,379       704,585       697,964       694,543    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (5,986 )     (6,439 )     (6,966 )     (7,521 )     (8,074 )  
    Total Tangible Common Equity (non-GAAP)   $ 541,988     $ 535,309     $ 529,988     $ 522,812     $ 518,838    
                                     
    Asset components:                                
    Total Assets (GAAP)   $ 5,512,160     $ 5,641,646     $ 5,548,576     $ 5,260,500     $ 5,254,044    
    Less: Goodwill     (167,631 )     (167,631 )     (167,631 )     (167,631 )     (167,631 )  
    Less: Other Intangible Assets     (5,986 )     (6,439 )     (6,966 )     (7,521 )     (8,074 )  
    Total Tangible Assets (non-GAAP)   $ 5,338,543     $ 5,467,576     $ 5,373,979     $ 5,085,348     $ 5,078,339    
                                     
    Tangible common equity / tangible assets (non-GAAP)     10.15   %   9.79   %   9.86   %   10.28   %   10.22   %
                                               

    The MIL Network

  • MIL-OSI: OceanFirst Financial Corp. Announces First Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    RED BANK, N.J., April 24, 2025 (GLOBE NEWSWIRE) — OceanFirst Financial Corp. (NASDAQ:OCFC) (the “Company”), the holding company for OceanFirst Bank N.A. (the “Bank”), announced net income available to common stockholders of $20.5 million, or $0.35 per diluted share, for the quarter ended March 31, 2025, a decrease from $27.7 million, or $0.47 per diluted share, for the corresponding prior year period, and a decrease from $20.9 million, or $0.36 per diluted share, for the linked quarter. Selected performance metrics are as follows (refer to “Selected Quarterly Financial Data” for additional information):

        For the Three Months Ended,
        March 31,   December 31,   March 31,
    Performance Ratios (Annualized):   2025   2024   2024
    Return on average assets   0.62 %   0.61 %   0.82 %
    Return on average stockholders’ equity   4.85     4.88     6.65  
    Return on average tangible stockholders’ equity (a)   7.05     7.12     9.61  
    Return on average tangible common equity (a)   7.40     7.47     10.09  
    Efficiency ratio   65.67     67.86     59.56  
    Net interest margin   2.90     2.69     2.81  

    (a) Return on average tangible stockholders’ equity and return on average tangible common equity (“ROTCE”) are non-GAAP (“generally accepted accounting principles”) financial measures. Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and “Non-GAAP Reconciliation” tables for reconciliation and additional information regarding non-GAAP financial measures.

    Core earnings1 for the quarter ended March 31, 2025 were $20.3 million, or $0.35 per diluted share, a decrease from $25.6 million, or $0.44 per diluted share, for the corresponding prior year period, and a decrease from $22.1 million, or $0.38 per diluted share, for the linked quarter.

    Core earnings PTPP1 for the quarter ended March 31, 2025 was $32.4 million, or $0.56 per diluted share, as compared to $36.2 million, or $0.62 per diluted share, for the corresponding prior year period, and $29.6 million, or $0.51 per diluted share, for the linked quarter. Selected performance metrics are as follows:

        For the Three Months Ended,
        March 31,   December 31,   March 31,
    Core Ratios(Annualized):     2025       2024       2024  
    Return on average assets     0.62 %     0.65 %     0.76 %
    Return on average tangible stockholders’ equity     7.00       7.51       8.91  
    Return on average tangible common equity     7.34       7.89       9.36  
    Efficiency ratio     65.81       67.74       61.05  
    Core diluted earnings per share   $ 0.35     $ 0.38     $ 0.44  
    Core PTPP diluted earnings per share     0.56       0.51       0.62  

    Key developments for the recent quarter are described below:

    • Margin Expansion: Net interest margin increased 21 basis points to 2.90%, from 2.69%, and net interest income increased by $3.3 million to $86.7 million driven by a decrease in total cost of deposits to 2.06% from 2.32% in the linked quarter.
    • Commercial Loans: Commercial and industrial loans increased $95.1 million, or 6.1% as compared to the linked quarter. Additionally, the total commercial loan pipeline increased 90% to $375.6 million from $197.5 million in the linked quarter.
    • Provision for Credit Losses: Provision for credit losses was $5.3 million reflecting a net loan reserve build of $5.2 million, primarily driven by elevated uncertainty around macroeconomic conditions. This resulted in an increase of five basis points in the allowance for loan credit losses to total loans to 0.78%. Criticized and classified loans decreased by 5% to $149.3 million compared to the linked quarter, providing strong evidence of stable credit performance for the Company’s loan portfolio.

    Chairman and Chief Executive Officer, Christopher D. Maher, commented on the Company’s results, “We are pleased to present our current quarter results, which reflect a meaningful expansion of net interest income and net interest margin, continued strong asset quality metrics, and further capital accretion, including share repurchases.” Mr. Maher added, “Additionally, we understand the increased market uncertainty and volatility, but we have confidence that the Company is well-positioned. Finally, we are pleased that the first quarter talent recruiting season has resulted in a robust addition of commercial banking talent. Reflecting the strength of the commercial banking platform we have built, 36 highly experienced commercial bankers have joined OceanFirst this year.”

    The Company’s Board of Directors declared its 113th consecutive quarterly cash dividend on common stock. The quarterly cash dividend on common stock of $0.20 per share will be paid on May 16, 2025 to common stockholders of record on May 5, 2025. The Company’s Board of Directors also previously declared a quarterly cash dividend on preferred stock of $0.4375 per depositary share, representing 1/40th interest in the Series A Preferred Stock. This dividend will be paid on May 15, 2025 to preferred stockholders of record on April 30, 2025. The Company has notified the preferred stockholders that it intends to redeem the Series A Preferred Stock in full on May 15, 2025.

    1 Core earnings and core earnings before income taxes and provision for credit losses (“PTPP” or “Pre-Tax-Pre-Provision”), and ratios derived therefrom, are non-GAAP financial measures. For the periods presented, core earnings exclude merger related expenses, net (gain) loss on equity investments, net gain on sale of trust business, the opening provision for credit losses in connection with the acquisition of Spring Garden Capital Group, LLC (“Spring Garden”), the Federal Deposit Insurance Corporation (“FDIC”) special assessment, and the income tax effect of these items, (collectively referred to as “non-core” operations). PTPP excludes the aforementioned pre-tax “non-core” items along with income tax expense (benefit) and provision for credit losses (exclusive of the Spring Garden opening provision). Refer to “Explanation of Non-GAAP Financial Measures,” “Selected Quarterly Financial Data” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.

    Results of Operations

    The current quarter was impacted by a decrease in average interest earning assets and liabilities, benefited from funding cost repricing efforts, and included a sale of non-performing residential and consumer loans of $5.1 million, which had related charge-offs of $720,000. Additionally, the current quarter included non-recurring benefits of $842,000 in other income and $1.3 million in normal incentive related adjustments.

    Net Interest Income and Margin

    Three months ended March 31, 2025 vs. March 31, 2024

    Net interest income increased to $86.7 million, from $86.2 million, primarily reflecting the net impact of the decreasing interest rate environment. Net interest margin increased to 2.90%, from 2.81%, which included the impact of purchase accounting accretion and prepayment fees of 0.03% and 0.04%, respectively. Net interest margin increased primarily due to the decrease in cost of funds outpacing the decrease in yield on average interest-earning assets.

    Average interest-earning assets decreased by $238.4 million primarily due to a decrease in commercial loans and securities. The average yield for interest-earning assets decreased to 5.13%, from 5.26%.

    The cost of average interest-bearing liabilities decreased to 2.78%, from 3.03%, primarily due to lower cost of deposits and, to a lesser extent, Federal Home Loan Bank (“FHLB”) advances. The total cost of deposits decreased 25 basis points to 2.06%, from 2.31%. Average interest-bearing liabilities decreased by $226.1 million, primarily due to decreases in savings, time deposits and other borrowings, largely offset by an increase in FHLB advances.

    Three months ended March 31, 2025 vs. December 31, 2024

    Net interest income increased by $3.3 million and net interest margin increased to 2.90%, from 2.69%, primarily reflecting the impact of deposit repricing. Net interest income included the impact of purchase accounting accretion and prepayment fees of 0.03% in the current quarter and none in the prior quarter.

    Average interest-earning assets decreased by $219.5 million, primarily due to decreases in securities and interest-earning cash deposits. The yield on average interest-earning assets decreased to 5.13%, from 5.15%.

    Average interest-bearing liabilities decreased by $211.3 million, primarily due to decreases in deposits and other borrowings, partly offset by an increase in FHLB advances. The total cost of average interest-bearing liabilities decreased to 2.78%, from 3.04%, primarily due to lower cost of deposits. The total cost of deposits decreased to 2.06%, from 2.32%.

    Provision for Credit Losses

    Provision for credit losses for the quarter ended March 31, 2025 was $5.3 million, as compared to $591,000 for the corresponding prior year period and $3.5 million for the linked quarter. The linked quarter included a $1.4 million initial provision for credit losses related to the acquisition of Spring Garden. The current quarter provision was primarily driven by elevated uncertainty around macroeconomic conditions.

    Net loan charge-offs were $636,000 for the quarter ended March 31, 2025, as compared to net loan charge-offs of $349,000 for the corresponding prior year period and net loan recoveries of $158,000 in the linked quarter. The current quarter includes charge-offs of $720,000 related to the sale of $5.1 million non-performing residential and consumer loans. Refer to “Results of Operations” section for further discussion.

    Non-interest Income

    Three months ended March 31, 2025 vs. March 31, 2024

    Other income decreased to $11.3 million, as compared to $12.3 million. Other income was favorably impacted by non-core operations of $205,000 related to net gains on equity investments in the current quarter. The prior year other income was favorably impacted by non-core operations of $3.1 million related to net gains on equity investments and a gain on sale of a portion of the Company’s trust business.

    Excluding non-core operations, other income increased by $1.8 million. The primary drivers were increases related to net gain on sale of loans of $501,000, commercial loan swap income of $482,000, and an increase in non-recurring other income of $842,000 as noted above.

    Three months ended March 31, 2025 vs. December 31, 2024

    Excluding non-core operations, other income decreased by $1.2 million from $12.2 million in the linked quarter. The primary drivers were decreases in fees and service charges of $1.5 million, primarily due to lower title fee income as a result of seasonality, and income from bank owned life insurance of $686,000, related to non-recurring death benefits of $768,000 in the linked quarter. This was partly offset by increases in commercial loan swap income of $534,000 and non-recurring other income of $842,000 noted above.

    Non-interest Expense

    Three months ended March 31, 2025 vs. March 31, 2024

    Operating expenses increased to $64.3 million, as compared to $58.7 million. Operating expenses in the prior year were adversely impacted by non-core operations of $418,000 from an FDIC special assessment.

    Excluding non-core operations, operating expenses increased by $6.0 million. The primary driver was an increase in compensation and benefits of $4.0 million, mostly due to acquisitions at the end of the prior year and annual merit increases. Additional drivers were increases in other operating expenses of $1.0 million, due to additional loan servicing expense, and increases in data processing expense of $691,000, partly due to acquisitions at the end of the prior year.

    Three months ended March 31, 2025 vs. December 31, 2024

    Operating expenses in the linked quarter were $64.8 million and were adversely impacted by non-core items of $110,000 from merger-related expenses. Excluding non-core operations, operating expenses decreased by $445,000. This included a decrease in normal incentive related adjustments of $1.3 million, offset by annual merit increases during the year. Additionally, there were decreases in other operating expense of $840,000, mostly related to lower title costs and marketing of $507,000. This was partly offset by an increase in federal deposit insurance and regulatory assessments of $466,000.

    Income Tax Expense

    The provision for income taxes was $6.8 million for the quarter ended March 31, 2025, as compared to $10.6 million for the same prior year period and $5.1 million for the linked quarter. The effective tax rate was 24.1% for the quarter ended March 31, 2025, as compared to 27.1% for the same prior year period and 18.7% for the linked quarter. The prior year’s effective tax rate was negatively impacted by 3.0% due to a one-time write-off of a deferred tax asset of $1.2 million. The linked quarter’s effective tax rate was positively impacted by utilization of higher tax credits.

    Financial Condition

    March 31, 2025 vs. December 31, 2024

    Total assets decreased by $112.0 million to $13.31 billion, from $13.42 billion, primarily due to decreases in total debt securities. Debt securities available-for-sale decreased by $81.3 million to $746.2 million, from $827.5 million, primarily due to principal reductions, maturities and calls. Debt securities held-to-maturity decreased by $40.4 million to $1.01 billion, from $1.05 billion, primarily due to principal repayments. Loans held-for-sale decreased by $11.5 million to $9.7 million from $21.2 million. Total loans increased by $7.2 million to $10.13 billion, from $10.12 billion, while the loan pipeline increased by $197.8 million to $504.4 million, from $306.7 million. Other assets decreased by $14.9 million to $170.8 million, from $185.7 million, primarily due to a decrease in market values associated with customer interest rate swap programs.

    Total liabilities decreased by $118.3 million to $11.60 billion, from $11.72 billion primarily related to a funding mix-shift. Deposits increased by $110.7 million to $10.18 billion, from $10.07 billion, primarily due to increases in non-interest bearing, savings and time deposits. Time deposits increased to $2.12 billion, from $2.08 billion, representing 20.8% and 20.7% of total deposits, respectively. Time deposits included an increase in brokered time deposits of $295.8 million, offset by a decrease in retail time deposits of $251.1 million. The loan-to-deposit ratio was 99.5%, as compared to 100.5%. FHLB advances decreased by $181.6 million to $891.0 million, from $1.07 billion partly driven by a shift to slightly favorably priced brokered deposits.

    Other liabilities decreased by $58.0 million to $240.4 million, from $298.4 million, primarily due to a decrease in the market values of derivatives associated with customer interest rate swaps and related collateral received from counterparties.

    Capital levels remain strong and in excess of “well-capitalized” regulatory levels at March 31, 2025, including the Company’s estimated common equity tier one capital ratio which remained at 11.2%.

    Total stockholders’ equity increased to $1.71 billion, as compared to $1.70 billion, primarily reflecting net income, partially offset by capital returns comprising of dividends and share repurchases. During the quarter ended March 31, 2025, the Company repurchased 398,395 shares totaling $6.9 million representing a weighted average cost of $17.20. The Company had 1,228,863 shares available for repurchase under the authorized repurchase program. Additionally, accumulated other comprehensive loss decreased by $2.6 million primarily due to increases in fair market value of available-for-sale debt securities, net of tax.

    The Company’s tangible common equity2 increased by $7.3 million to $1.12 billion. The Company’s stockholders’ equity to assets ratio was 12.84% at March 31, 2025, and tangible common equity to tangible assets ratio increased by 14 basis points during the quarter to 8.76%, primarily due to the drivers described above.

    Book value per common share increased to $29.27, as compared to $29.08. Tangible book value per common share2 increased to $19.16, as compared to $18.98.

    2 Tangible book value per common share and tangible common equity to tangible assets are non-GAAP financial measures and exclude the impact of intangible assets, goodwill, and preferred equity from both stockholders’ equity and total assets. Refer to “Explanation of Non-GAAP Financial Measures” and the “Non-GAAP Reconciliation” tables for additional information regarding non-GAAP financial measures.

    Asset Quality

    March 31, 2025 vs. December 31, 2024

    The Company’s non-performing loans increased to $37.0 million, from $35.5 million, and represented 0.37% and 0.35% of total loans, respectively. The allowance for loan credit losses as a percentage of total non-performing loans was 213.14%, as compared to 207.19%. The level of 30 to 89 days delinquent loans increased to $46.2 million, from $36.6 million, primarily related to commercial loans. Criticized and classified assets, including other real estate owned, decreased to $151.2 million, from $159.9 million. The Company’s allowance for loan credit losses was 0.78% of total loans, as compared to 0.73%. Refer to “Provision for Credit Losses” section for further discussion.

    The Company’s asset quality, excluding purchased with credit deterioration (“PCD”) loans, was as follows. Non-performing loans increased to $29.2 million, from $27.6 million. The allowance for loan credit losses as a percentage of total non-performing loans was 269.43%, as compared to 266.73%. The level of 30 to 89 days delinquent loans, excluding non-performing loans, increased to $35.8 million, from $33.6 million.

    Explanation of Non-GAAP Financial Measures

    Reported amounts are presented in accordance with GAAP. The Company’s management believes that the supplemental non-GAAP information, which consists of reported net income excluding non-core operations and in some instances excluding income taxes and provision for credit losses, and reporting equity and asset amounts excluding intangible assets, goodwill or preferred stock, all of which can vary from period to period, provides a better comparison of period-to-period operating performance. Additionally, the Company believes this information is utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures, which may be presented by other companies. Refer to the Non-GAAP Reconciliation table at the end of this document for details on the earnings impact of these items.

    Annual Meeting

    The Company previously announced that its Annual Meeting of Stockholders will be held on Monday, May 19, 2025 at 8:00 a.m. Eastern Time. The record date for stockholders to vote at the Annual Meeting is Tuesday, March 25, 2025. Voting before the meeting is encouraged, even for stockholders planning to participate in the virtual webcast. Votes may be submitted by telephone or online according to the instructions on the proxy card or by mail. A link to the live webcast is available by visiting oceanfirst.com – Investor Relations. Access will begin at 7:45 a.m. Eastern Time to allow time for stockholders to log-in with the control number provided on the proxy card prior to the 8:00 a.m. Eastern Time scheduled start. Eligible stockholders may also vote during the live meeting online at www.virtualshareholdermeeting.com/OCFC2025 by entering the 16-digit control number included on the proxy card or notice. As a reminder, participants of the meeting are not required to vote. Additional information regarding virtual access to the meeting will be distributed prior to the meeting.

    Conference Call

    As previously announced, the Company will host an earnings conference call on Friday, April 25, 2025 at 11:00 a.m. Eastern Time. The direct dial number for the call is (833) 470-1428, using the access code 934356. For those unable to participate in the conference call, a replay will be available. To access the replay, dial (855) 762-8306, from one hour after the end of the call until May 2, 2025. The conference call, as well as the replay, are also available (listen-only) by internet webcast at www.oceanfirst.com in the Investor Relations section.

    OceanFirst Financial Corp.’s subsidiary, OceanFirst Bank N.A., founded in 1902, is a $13.3 billion regional bank providing financial services throughout New Jersey and in the major metropolitan areas between Massachusetts and Virginia. OceanFirst Bank delivers commercial and residential financing, treasury management, trust and asset management, and deposit services and is one of the largest and oldest community-based financial institutions headquartered in New Jersey. To learn more about OceanFirst, go to www.oceanfirst.com

    Forward-Looking Statements

    In addition to historical information, this news release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are based on certain assumptions and describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by use of the words “believe”, “expect”, “intend”, “anticipate”, “estimate”, “project”, “will”, “should”, “may”, “view”, “opportunity”, “potential”, or similar expressions or expressions of confidence. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to: changes in interest rates, inflation, general economic conditions, including potential recessionary conditions, levels of unemployment in the Company’s lending area, real estate market values in the Company’s lending area, potential goodwill impairment, natural disasters, potential increases to flood insurance premiums, the current or anticipated impact of military conflict, terrorism or other geopolitical events, the imposition of tariffs or other domestic or international governmental policies, the level of prepayments on loans and mortgage-backed securities, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System, the quality or composition of the loan or investment portfolios, demand for loan products, deposit flows, the availability of low-cost funding, changes in liquidity, including the size and composition of the Company’s deposit portfolio, and the percentage of uninsured deposits in the portfolio, changes in capital management and balance sheet strategies and the ability to successfully implement such strategies, competition, demand for financial services in the Company’s market area, changes in consumer spending, borrowing and saving habits, changes in accounting principles, a failure in or breach of the Company’s operational or security systems or infrastructure, including cyberattacks, the failure to maintain current technologies, failure to retain or attract employees, the impact of pandemics on our operations and financial results and those of our customers and the Bank’s ability to successfully integrate acquired operations. These risks and uncertainties are further discussed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, under Item 1A – Risk Factors and elsewhere, and subsequent securities filings and should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. The Company does not undertake, and specifically disclaims any obligation, to publicly release the result of any revisions which may be made to any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

     
    OceanFirst Financial Corp.
    CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
    (dollars in thousands)
     
        March 31,   December 31,   March 31,
          2025       2024       2024  
        (Unaudited)       (Unaudited)
    Assets            
    Cash and due from banks   $ 163,721     $ 123,615     $ 130,422  
    Debt securities available-for-sale, at estimated fair value     746,168       827,500       744,944  
    Debt securities held-to-maturity, net of allowance for securities credit losses of $898 at March 31, 2025, $967 at December 31, 2024, and $1,058 at March 31, 2024 (estimated fair value of $926,075 at March 31, 2025, $952,917 at December 31, 2024, and $1,029,965 at March 31, 2024)     1,005,476       1,045,875       1,128,666  
    Equity investments     87,365       84,104       103,201  
    Restricted equity investments, at cost     102,172       108,634       85,689  
    Loans receivable, net of allowance for loan credit losses of $78,798 at March 31, 2025, $73,607 at December 31, 2024, and $67,173 at March 31, 2024     10,058,072       10,055,429       10,068,209  
    Loans held-for-sale     9,698       21,211       4,702  
    Interest and dividends receivable     44,843       45,914       52,502  
    Other real estate owned     1,917       1,811        
    Premises and equipment, net     114,588       115,256       119,211  
    Bank owned life insurance     269,398       270,208       266,615  
    Assets held for sale                 28  
    Goodwill     523,308       523,308       506,146  
    Intangibles     11,740       12,680       8,669  
    Other assets     170,812       185,702       199,974  
    Total assets   $ 13,309,278     $ 13,421,247     $ 13,418,978  
    Liabilities and Stockholders’ Equity            
    Deposits   $ 10,177,023     $ 10,066,342     $ 10,236,851  
    Federal Home Loan Bank advances     891,021       1,072,611       658,436  
    Securities sold under agreements to repurchase with customers     65,132       60,567       66,798  
    Other borrowings     197,808       197,546       425,722  
    Advances by borrowers for taxes and insurance     28,789       23,031       28,187  
    Other liabilities     240,388       298,393       337,147  
    Total liabilities     11,600,161       11,718,490       11,753,141  
    Stockholders’ equity:            
    OceanFirst Financial Corp. stockholders’ equity     1,708,322       1,701,650       1,665,112  
    Non-controlling interest     795       1,107       725  
    Total stockholders’ equity     1,709,117       1,702,757       1,665,837  
    Total liabilities and stockholders’ equity   $ 13,309,278     $ 13,421,247     $ 13,418,978  
    OceanFirst Financial Corp.
    CONSOLIDATED STATEMENTS OF INCOME
    (in thousands, except per share amounts)
     
        For the Three Months Ended,
        March 31,   December 31,   March 31,
          2025       2024       2024  
        |———————- (Unaudited) ———————-|
    Interest income:            
    Loans   $ 133,019     $ 135,438     $ 137,121  
    Debt securities     17,270       19,400       19,861  
    Equity investments and other     3,414       4,782       4,620  
    Total interest income     153,703       159,620       161,602  
    Interest expense:            
    Deposits     51,046       59,889       59,855  
    Borrowed funds     16,005       16,402       15,523  
    Total interest expense     67,051       76,291       75,378  
    Net interest income     86,652       83,329       86,224  
    Provision for credit losses     5,340       3,467       591  
    Net interest income after provision for credit losses     81,312       79,862       85,633  
    Other income:            
    Bankcard services revenue     1,463       1,595       1,416  
    Trust and asset management revenue     406       416       526  
    Fees and service charges     4,712       6,207       4,473  
    Net gain on sales of loans     858       1,076       357  
    Net gain (loss) on equity investments     205       (5 )     1,923  
    Net loss from other real estate operations     (16 )     (20 )      
    Income from bank owned life insurance     1,852       2,538       1,862  
    Commercial loan swap income     620       86       138  
    Other     1,153       339       1,591  
    Total other income     11,253       12,232       12,286  
    Operating expenses:            
    Compensation and employee benefits     36,740       36,602       32,759  
    Occupancy     5,497       5,280       5,199  
    Equipment     921       1,026       1,130  
    Marketing     1,108       1,615       990  
    Federal deposit insurance and regulatory assessments     2,983       2,517       3,135  
    Data processing     6,647       6,366       5,956  
    Check card processing     1,170       1,134       1,050  
    Professional fees     2,425       2,620       2,732  
    Amortization of intangibles     940       876       844  
    Merger related expenses           110        
    Other operating expense     5,863       6,703       4,877  
    Total operating expenses     64,294       64,849       58,672  
    Income before provision for income taxes     28,271       27,245       39,247  
    Provision for income taxes     6,808       5,083       10,637  
    Net income     21,463       22,162       28,610  
    Net (loss) income attributable to non-controlling interest     (46 )     253       (57 )
    Net income attributable to OceanFirst Financial Corp.     21,509       21,909       28,667  
    Dividends on preferred shares     1,004       1,004       1,004  
    Net income available to common stockholders   $ 20,505     $ 20,905     $ 27,663  
    Basic earnings per share   $ 0.35     $ 0.36     $ 0.47  
    Diluted earnings per share   $ 0.35     $ 0.36     $ 0.47  
    Average basic shares outstanding     58,102       58,026       58,789  
    Average diluted shares outstanding     58,111       58,055       58,791  
    OceanFirst Financial Corp.
    SELECTEDLOANAND DEPOSIT DATA
    (dollars in thousands)
     
    LOANS RECEIVABLE   At
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Commercial:                    
    Commercial real estate – investor   $ 5,200,137     $ 5,287,683     $ 5,273,159     $ 5,324,994     $ 5,322,755  
    Commercial and industrial:                    
    Commercial and industrial – real estate (1)     896,647       902,219       841,930       857,710       914,582  
    Commercial and industrial – non-real estate (1)     748,575       647,945       660,879       616,400       677,176  
    Total commercial and industrial     1,645,222       1,550,164       1,502,809       1,474,110       1,591,758  
        Total commercial     6,845,359       6,837,847       6,775,968       6,799,104       6,914,513  
    Consumer:                    
    Residential real estate     3,053,318       3,049,763       3,003,213       2,977,698       2,965,276  
    Home equity loans and lines and other consumer (“other consumer”)     226,633       230,462       242,975       242,526       245,859  
        Total consumer     3,279,951       3,280,225       3,246,188       3,220,224       3,211,135  
        Total loans     10,125,310       10,118,072       10,022,156       10,019,328       10,125,648  
    Deferred origination costs (fees), net     11,560       10,964       10,508       10,628       9,734  
    Allowance for loan credit losses     (78,798 )     (73,607 )     (69,066 )     (68,839 )     (67,173 )
        Loans receivable, net   $ 10,058,072     $ 10,055,429     $ 9,963,598     $ 9,961,117     $ 10,068,209  
    Mortgage loans serviced for others   $ 222,963     $ 191,279     $ 142,394     $ 104,136     $ 89,555  
      At March 31, 2025 Average Yield                    
    Loan pipeline (2):                      
    Commercial 7.37 %   $ 375,622     $ 197,491     $ 199,818     $ 166,206     $ 66,167  
    Residential real estate 6.41       116,121       97,385       137,978       80,330       57,340  
    Other consumer 8.51       12,681       11,783       13,788       12,586       13,030  
    Total 7.18 %   $ 504,424     $ 306,659     $ 351,584     $ 259,122     $ 136,537  
      For the Three Months Ended
      March 31,   December 31,   September 30,   June 30,   March 31,
      2025     2024       2024       2024       2024  
      Average Yield                    
    Loan originations:                      
    Commercial (3) 7.61 %   $ 233,968     $ 268,613     $ 245,886     $ 56,053     $ 123,010  
    Residential real estate 6.53       167,162       235,370       169,273       121,388       78,270  
    Other consumer 8.49       15,825       11,204       15,760       16,970       11,405  
    Total 7.21 %   $ 416,955     $ 515,187     $ 430,919     $ 194,411     $ 212,685  
    Loans sold     $ 104,991    (4) $ 127,508     $ 65,296     $ 45,045     $ 29,965  
    (1) During the quarter ended March 31, 2025, the Company retrospectively reclassified loans which were previously referred to as ‘commercial real estate – owner occupied’ and ‘commercial and industrial’ to ‘commercial and industrial – real estate’ and ‘commercial and industrial – non-real estate’, respectively. Collectively, these loans are referred to as ‘commercial and industrial’.
    (2) Loan pipeline includes loans approved but not funded.
    (3) Excludes commercial loan pool purchases of $24.3 million and $76.1 million for the three months ended March 31, 2025 and December 31, 2024, respectively.
    (4) Excludes sale of non-performing residential and consumer loans of $5.1 million for the three months ended March 31, 2025.

     

    DEPOSITS   At
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Type of Account                    
    Non-interest-bearing   $ 1,660,738     $ 1,617,182     $ 1,638,447     $ 1,632,521     $ 1,639,828  
    Interest-bearing checking     4,006,653       4,000,553       3,896,348       3,667,837       3,865,699  
    Money market     1,337,570       1,301,197       1,288,555       1,210,312       1,150,979  
    Savings     1,052,504       1,066,438       1,071,946       1,115,688       1,260,309  
    Time deposits (1)     2,119,558       2,080,972       2,220,871       2,367,659       2,320,036  
    Total deposits   $ 10,177,023     $ 10,066,342     $ 10,116,167     $ 9,994,017     $ 10,236,851  
    (1) Includes brokered time deposits of $370.5 million, $74.7 million, $201.0 million, $401.6 million, and $543.4 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.

     

    OceanFirst Financial Corp.
    ASSET QUALITY
    (dollars in thousands)
     
        March 31,   December 31,   September 30,   June 30,   March 31,
    ASSET QUALITY(1)     2025       2024       2024       2024       2024  
    Non-performing loans:                    
    Commercial real estate – investor   $ 23,595     $ 17,000     $ 12,478     $ 19,761     $ 21,507  
    Commercial and industrial:                    
    Commercial and industrial – real estate     4,690       4,787       4,368       4,081       3,355  
    Commercial and industrial – non-real estate     22       32       122       434       567  
    Total commercial and industrial     4,712       4,819       4,490       4,515       3,922  
    Residential real estate     5,709       10,644       9,108       7,213       7,181  
    Other consumer     2,954       3,064       2,063       1,933       2,401  
    Total non-performing loans(1)   $ 36,970     $ 35,527     $ 28,139     $ 33,422     $ 35,011  
    Other real estate owned     1,917       1,811                    
    Total non-performing assets   $ 38,887     $ 37,338     $ 28,139     $ 33,422     $ 35,011  
    Delinquent loans 30 to 89 days   $ 46,246     $ 36,550     $ 15,458     $ 9,655     $ 17,534  
    Modifications to borrowers experiencing financial difficulty(2)                    
    Non-performing (included in total non-performing loans above)   $ 8,307     $ 3,232     $ 3,043     $ 3,210     $ 3,467  
    Performing     27,592       27,631       20,652       20,529       8,579  
    Total modifications to borrowers experiencing financial difficulty(2)   $ 35,899     $ 30,863     $ 23,695     $ 23,739     $ 12,046  
    Allowance for loan credit losses   $ 78,798     $ 73,607     $ 69,066     $ 68,839     $ 67,173  
    Allowance for loan credit losses as a percent of total loans receivable(3)     0.78 %     0.73 %     0.69 %     0.69 %     0.66 %
    Allowance for loan credit losses as a percent of total non-performing loans(3)     213.14       207.19       245.45       205.97       191.86  
    Non-performing loans as a percent of total loans receivable     0.37       0.35       0.28       0.33       0.35  
    Non-performing assets as a percent of total assets     0.29       0.28       0.21       0.25       0.26  
    Supplemental PCD and non-performing loans                    
    PCD loans, net of allowance for loan credit losses   $ 21,737     $ 22,006     $ 15,323     $ 16,058     $ 16,700  
    Non-performing PCD loans     7,724       7,931       2,887       2,841       3,525  
    Delinquent PCD and non-performing loans 30 to 89 days     10,489       2,997       1,279       1,188       2,088  
    PCD modifications to borrowers experiencing financial difficulty(2)     22       23       24       26       25  
    Asset quality, excluding PCD loans(4)                    
    Non-performing loans(1)     29,246       27,596       25,252       30,581       31,486  
    Non-performing assets     31,163       29,407       25,252       30,581       31,486  
    Delinquent loans 30 to 89 days (excludes non-performing loans)     35,757       33,553       14,179       8,467       15,446  
    Modifications to borrowers experiencing financial difficulty(2)     35,877       30,840       23,671       23,713       12,021  
    Allowance for loan credit losses as a percent of total non-performing loans(3)     269.43 %     266.73 %     273.51 %     225.10 %     213.34 %
    Non-performing loans as a percent of total loans receivable     0.29       0.27       0.25       0.31       0.31  
    Non-performing assets as a percent of total assets     0.23       0.22       0.19       0.23       0.23  
    (1) The quarter ended March 31, 2025 included the sale of non-performing residential and consumer loans of $5.1 million and the quarter ended September 30, 2024 included the resolution of a single commercial relationship exposure of $7.2 million.
    (2) Balances have been revised to represent only modifications to borrowers experiencing financial difficulty, in accordance with ASU 2022-02 adopted on January 1, 2023.
    (3) Loans acquired from acquisitions were recorded at fair value. The net unamortized credit and PCD marks on these loans, not reflected in the allowance for loan credit losses, was $5.6 million, $6.0 million, $5.7 million, $6.1 million and $7.0 million at March 31, 2025, December 31, 2024, September 30, 2024, June 30, 2024, and March 31, 2024, respectively.
    (4) All balances and ratios exclude PCD loans.
    NET LOAN (CHARGE-OFFS) RECOVERIES   For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Net loan (charge-offs) recoveries:                    
    Loan charge-offs   $ (798 )   $ (55 )   $ (124 )   $ (1,600 )   $ (441 )
    Recoveries on loans     162       213       212       148       92  
    Net loan (charge-offs) recoveries   $ (636 )   $ 158     $ 88     $ (1,452 )   $ (349 )
    Net loan (charge-offs) recoveries to average total loans (annualized)     0.03 %     NM *     NM *     0.06 %     0.01 %
    Net loan (charge-offs) recoveries detail:                    
    Commercial   $ 25     $ 92     $ 129     $ (1,576 ) (1) $ (35 )
    Residential real estate     (720 ) (2)   (17 )     (6 )     87       66  
    Other consumer     59       83       (35 )     37       (380 )
    Net loan (charge-offs) recoveries   $ (636 )   $ 158     $ 88     $ (1,452 )   $ (349 )
    (1) The three months ended June 30, 2024 included a charge-off related to a single commercial real estate relationship of $1.6 million.
    (2) The three months ended March 31, 2025 included charge-offs of $720,000 related to the sale of non-performing residential loans.
    * Not meaningful as amounts are net loan recoveries.

     

    OceanFirst Financial Corp.
    ANALYSIS OF NET INTEREST INCOME
     
        For the Three Months Ended
        March 31, 2025   December 31, 2024   March 31, 2024
    (dollars in thousands)   Average
    Balance
      Interest   Average
    Yield/
    Cost (1)
      Average
    Balance
      Interest   Average
    Yield/
    Cost (1)
      Average
    Balance
      Interest   Average
    Yield/
    Cost (1)
    Assets:                                    
    Interest-earning assets:                                    
    Interest-earning deposits and short-term investments   $ 95,439     $ 983   4.18 %   $ 195,830     $ 2,415   4.91 %   $ 163,192     $ 2,226   5.49 %
    Securities (2)     2,003,206       19,701   3.99       2,116,911       21,767   4.09       2,098,421       22,255   4.27  
    Loans receivable, net (3)                                    
    Commercial     6,781,005       98,260   5.88       6,794,158       101,003   5.91       6,925,048       104,421   6.06  
    Residential real estate     3,065,679       31,270   4.08       3,049,092       30,455   4.00       2,974,468       28,596   3.85  
    Other consumer     228,553       3,489   6.19       236,161       3,980   6.70       248,396       4,104   6.65  
    Allowance for loan credit losses, net of deferred loan costs and fees     (61,854 )             (60,669 )             (59,141 )        
    Loans receivable, net     10,013,383       133,019   5.37       10,018,742       135,438   5.38       10,088,771       137,121   5.46  
    Total interest-earning assets     12,112,028       153,703   5.13       12,331,483       159,620   5.15       12,350,384       161,602   5.26  
    Non-interest-earning assets     1,199,865               1,213,569               1,206,336          
    Total assets   $ 13,311,893             $ 13,545,052             $ 13,556,720          
    Liabilities and Stockholders’ Equity:                                    
    Interest-bearing liabilities:                                    
    Interest-bearing checking   $ 4,135,952       21,433   2.10 %   $ 4,050,428       22,750   2.23 %   $ 3,925,965       20,795   2.13 %
    Money market     1,322,003       9,353   2.87       1,325,119       10,841   3.25       1,092,003       9,172   3.38  
    Savings     1,058,015       1,785   0.68       1,070,816       2,138   0.79       1,355,718       4,462   1.32  
    Time deposits     1,916,109       18,475   3.91       2,212,750       24,160   4.34       2,414,063       25,426   4.24  
    Total     8,432,079       51,046   2.46       8,659,113       59,889   2.75       8,787,749       59,855   2.74  
    FHLB Advances     996,293       11,359   4.62       854,748       10,030   4.67       644,818       7,771   4.85  
    Securities sold under agreements to repurchase     64,314       428   2.70       76,856       513   2.66       68,500       411   2.41  
    Other borrowings     283,150       4,218   6.04       396,412       5,859   5.88       500,901       7,341   5.89  
    Total borrowings     1,343,757       16,005   4.83       1,328,016       16,402   4.91       1,214,219       15,523   5.14  
    Total interest-bearing liabilities     9,775,836       67,051   2.78       9,987,129       76,291   3.04       10,001,968       75,378   3.03  
    Non-interest-bearing deposits     1,597,972               1,627,376               1,634,583          
    Non-interest-bearing liabilities     222,951               227,221               247,129          
    Total liabilities     11,596,759               11,841,726               11,883,680          
    Stockholders’ equity     1,715,134               1,703,326               1,673,040          
    Total liabilities and equity   $ 13,311,893             $ 13,545,052             $ 13,556,720          
    Net interest income       $ 86,652           $ 83,329           $ 86,224    
    Net interest rate spread (4)           2.35 %           2.11 %           2.23 %
    Net interest margin (5)           2.90 %           2.69 %           2.81 %
    Total cost of deposits (including non-interest-bearing deposits)           2.06 %           2.32 %           2.31 %
    (1) Average yields and costs are annualized.
    (2) Amounts represent debt and equity securities, including FHLB and Federal Reserve Bank stock, and are recorded at average amortized cost, net of allowance for securities credit losses.
    (3) Amount is net of deferred loan costs and fees, undisbursed loan funds, discounts and premiums and allowance for loan credit losses, and includes loans held for sale and non-performing loans.
    (4) Net interest rate spread represents the difference between the yield on interest-earning assets and the cost of interest-bearing liabilities.
    (5) Net interest margin represents net interest income divided by average interest-earning assets.

     

    OceanFirst Financial Corp.
    SELECTED QUARTERLY FINANCIAL DATA
    (in thousands, except per share amounts)
     
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Selected Financial Condition Data:                    
    Total assets   $ 13,309,278     $ 13,421,247     $ 13,488,483     $ 13,321,755     $ 13,418,978  
    Debt securities available-for-sale, at estimated fair value     746,168       827,500       911,753       721,484       744,944  
    Debt securities held-to-maturity, net of allowance for securities credit losses     1,005,476       1,045,875       1,075,131       1,105,843       1,128,666  
    Equity investments     87,365       84,104       95,688       104,132       103,201  
    Restricted equity investments, at cost     102,172       108,634       98,545       92,679       85,689  
    Loans receivable, net of allowance for loan credit losses     10,058,072       10,055,429       9,963,598       9,961,117       10,068,209  
    Deposits     10,177,023       10,066,342       10,116,167       9,994,017       10,236,851  
    Federal Home Loan Bank advances     891,021       1,072,611       891,860       789,337       658,436  
    Securities sold under agreements to repurchase and other borrowings     262,940       258,113       501,090       504,490       492,520  
    Total stockholders’ equity     1,709,117       1,702,757       1,694,508       1,676,669       1,665,837  
        For the Three Months Ended,
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Selected Operating Data:                    
    Interest income   $ 153,703     $ 159,620     $ 161,525     $ 159,426     $ 161,602  
    Interest expense     67,051       76,291       79,306       77,163       75,378  
    Net interest income     86,652       83,329       82,219       82,263       86,224  
    Provision for credit losses (excluding Spring Garden)     5,340       2,041       517       3,114       591  
    Spring Garden opening provision for credit losses           1,426                    
    Net interest income after provision for credit losses     81,312       79,862       81,702       79,149       85,633  
    Other income (excluding equity investments and sale of trust)     11,048       12,237       11,826       10,098       9,201  
    Net gain (loss) on equity investments     205       (5 )     1,420       887       1,923  
    Net gain on sale of trust business                 1,438             1,162  
    Operating expenses (excluding FDIC special assessment and merger related expenses)     64,294       64,739       62,067       58,620       58,254  
    FDIC special assessment                             418  
    Merger related expenses           110       1,669              
    Income before provision for income taxes     28,271       27,245       32,650       31,514       39,247  
    Provision for income taxes     6,808       5,083       7,464       7,082       10,637  
    Net income     21,463       22,162       25,186       24,432       28,610  
    Net (loss) income attributable to non-controlling interest     (46 )     253       70       59       (57 )
    Net income attributable to OceanFirst Financial Corp.   $ 21,509     $ 21,909     $ 25,116     $ 24,373     $ 28,667  
    Net income available to common stockholders   $ 20,505     $ 20,905     $ 24,112     $ 23,369     $ 27,663  
    Diluted earnings per share   $ 0.35     $ 0.36     $ 0.42     $ 0.40     $ 0.47  
    Net accretion/amortization of purchase accounting adjustments included in net interest income   $ 219     $ 20     $ 741     $ 1,086     $ 921  
        At or For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
        2025   2024   2024   2024   2024
    Selected Financial Ratios and Other Data (1) (2):                    
    Performance Ratios (Annualized):                    
    Return on average assets (3)   0.62 %   0.61 %   0.71 %   0.70 %   0.82 %
    Return on average tangible assets (3) (4)   0.65     0.64     0.74     0.73     0.85  
    Return on average stockholders’ equity (3)   4.85     4.88     5.68     5.61     6.65  
    Return on average tangible stockholders’ equity (3) (4)   7.05     7.12     8.16     8.10     9.61  
    Return on average tangible common equity (3) (4)   7.40     7.47     8.57     8.51     10.09  
    Stockholders’ equity to total assets   12.84     12.69     12.56     12.59     12.41  
    Tangible stockholders’ equity to tangible assets (4)   9.19     9.06     9.10     9.08     8.92  
    Tangible common equity to tangible assets (4)   8.76     8.62     8.68     8.64     8.49  
    Net interest rate spread   2.35     2.11     2.06     2.11     2.23  
    Net interest margin   2.90     2.69     2.67     2.71     2.81  
    Operating expenses to average assets   1.96     1.90     1.89     1.75     1.74  
    Efficiency ratio (5)   65.67     67.86     65.77     62.86     59.56  
    Loan-to-deposit ratio   99.50     100.50     99.10     100.30     98.90  
        At or For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Trust and Asset Management:                    
    Wealth assets under administration and management (“AUA/M”)   $ 149,106     $ 147,956     $ 152,797     $ 150,519     $ 236,891  
    Nest Egg AUA/M     453,803       431,434       430,413       403,647       407,478  
    Total AUA/M     602,909       579,390       583,210       554,166       644,369  
    Per Share Data:                    
    Cash dividends per common share   $ 0.20     $ 0.20     $ 0.20     $ 0.20     $ 0.20  
    Book value per common share at end of period     29.27       29.08       29.02       28.67       28.32  
    Tangible book value per common share at end of period (4)     19.16       18.98       19.28       18.93       18.63  
    Common shares outstanding at end of period     58,383,525       58,554,871       58,397,094       58,481,418       58,812,498  
    Preferred shares outstanding at end of period     57,370       57,370       57,370       57,370       57,370  
    Number of full-service customer facilities:     39       39       39       39       39  
    Quarterly Average Balances                    
    Total securities   $ 2,003,206     $ 2,116,911     $ 2,063,633     $ 2,058,711     $ 2,098,421  
    Loans receivable, net     10,013,383       10,018,742       9,958,794       10,012,491       10,088,771  
    Total interest-earning assets     12,112,028       12,331,483       12,232,672       12,203,776       12,350,384  
    Total goodwill and intangibles     535,657       534,942       513,731       514,535       515,356  
    Total assets     13,311,893       13,545,052       13,438,696       13,441,218       13,556,720  
    Time deposits     1,916,109       2,212,750       2,339,370       2,337,458       2,414,063  
    Total deposits (including non-interest-bearing deposits)     10,030,051       10,286,489       10,175,856       10,173,315       10,422,332  
    Total borrowings     1,343,757       1,328,016       1,333,245       1,325,372       1,214,219  
    Total interest-bearing liabilities     9,775,836       9,987,129       9,874,358       9,872,522       10,001,968  
    Non-interest bearing deposits     1,597,972       1,627,376       1,634,743       1,626,165       1,634,583  
    Stockholders’ equity     1,715,134       1,703,326       1,689,035       1,674,453       1,673,040  
    Tangible stockholders’ equity (4)     1,179,477       1,168,384       1,175,304       1,159,918       1,157,684  
                         
    Quarterly Yields and Costs                    
    Total securities     3.99 %     4.09 %     4.23 %     4.22 %     4.27 %
    Loans receivable, net     5.37       5.38       5.46       5.46       5.46  
    Total interest-earning assets     5.13       5.15       5.26       5.25       5.26  
    Time deposits     3.91       4.34       4.58       4.46       4.24  
    Total cost of deposits (including non-interest-bearing deposits)     2.06       2.32       2.44       2.37       2.31  
    Total borrowed funds     4.83       4.91       5.07       5.19       5.14  
    Total interest-bearing liabilities     2.78       3.04       3.20       3.14       3.03  
    Net interest spread     2.35       2.11       2.06       2.11       2.23  
    Net interest margin     2.90       2.69       2.67       2.71       2.81  
    (1) With the exception of end of quarter ratios, all ratios are based on average daily balances.
    (2) Performance ratios for each period are presented on a GAAP basis and include non-core operations. Refer to “Non-GAAP Reconciliation.”
    (3) Ratios for each period are based on net income available to common stockholders.
    (4) Tangible stockholders’ equity and tangible assets exclude goodwill and other intangibles. Tangible common equity (also referred to as “tangible book value”) excludes goodwill, intangibles and preferred equity. Refer to “Non-GAAP Reconciliation.”
    (5) Efficiency ratio represents the ratio of operating expenses to the aggregate of other income and net interest income.
    OceanFirst Financial Corp.
    OTHER ITEMS
    (dollars in thousands, except per share amounts)
     
    NON-GAAP RECONCILIATION
     
        For the Three Months Ended
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Core Earnings:                    
    Net income available to common stockholders (GAAP)   $ 20,505     $ 20,905     $ 24,112     $ 23,369     $ 27,663  
    (Less) add non-recurring and non-core items:                    
    Spring Garden opening provision for credit losses           1,426                    
    Net (gain) loss on equity investments     (205 )     5       (1,420 )     (887 )     (1,923 )
    Net gain on sale of trust business                 (1,438 )           (1,162 )
    FDIC special assessment                             418  
    Merger related expenses           110       1,669              
    Income tax expense (benefit) on items     49       (388 )     270       188       642  
    Core earnings (Non-GAAP)   $ 20,349     $ 22,058     $ 23,193     $ 22,670     $ 25,638  
    Income tax expense   $ 6,808     $ 5,083     $ 7,464     $ 7,082     $ 10,637  
    Provision for credit losses     5,340       3,467       517       3,114       591  
    Less: non-core provision for credit losses           1,426                    
    Less: income tax expense (benefit) on non-core items     49       (388 )     270       188       642  
    Core earnings PTPP (Non-GAAP)   $ 32,448     $ 29,570     $ 30,904     $ 32,678     $ 36,224  
    Core earnings diluted earnings per share   $ 0.35     $ 0.38     $ 0.39     $ 0.39     $ 0.44  
    Core earnings PTPP diluted earnings per share   $ 0.56     $ 0.51     $ 0.53     $ 0.56     $ 0.62  
                         
    Core Ratios (Annualized):                    
    Return on average assets     0.62 %     0.65 %     0.69 %     0.68 %     0.76 %
    Return on average tangible stockholders’ equity     7.00       7.51       7.85       7.86       8.91  
    Return on average tangible common equity     7.34       7.89       8.24       8.26       9.36  
    Efficiency ratio     65.81       67.74       66.00       63.47       61.05  
        March 31,   December 31,   September 30,   June 30,   March 31,
          2025       2024       2024       2024       2024  
    Tangible Equity:                    
    Total stockholders’ equity   $ 1,709,117     $ 1,702,757     $ 1,694,508     $ 1,676,669     $ 1,665,837  
    Less:                    
    Goodwill     523,308       523,308       506,146       506,146       506,146  
    Intangibles     11,740       12,680       7,056       7,859       8,669  
    Tangible stockholders’ equity     1,174,069       1,166,769       1,181,306       1,162,664       1,151,022  
    Less:                    
    Preferred stock     55,527       55,527       55,527       55,527       55,527  
    Tangible common equity   $ 1,118,542     $ 1,111,242     $ 1,125,779     $ 1,107,137     $ 1,095,495  
                         
    Tangible Assets:                    
    Total assets   $ 13,309,278     $ 13,421,247     $ 13,488,483     $ 13,321,755     $ 13,418,978  
    Less:                    
    Goodwill     523,308       523,308       506,146       506,146       506,146  
    Intangibles     11,740       12,680       7,056       7,859       8,669  
    Tangible assets   $ 12,774,230     $ 12,885,259     $ 12,975,281     $ 12,807,750     $ 12,904,163  
                         
    Tangible stockholders’ equity to tangible assets     9.19 %     9.06 %     9.10 %     9.08 %     8.92 %
    Tangible common equity to tangible assets     8.76 %     8.62 %     8.68 %     8.64 %     8.49 %


    C
    ompany Contact:

    Patrick S. Barrett
    Chief Financial Officer
    OceanFirst Financial Corp.
    Tel: (732) 240-4500, ext. 27507
    Email: pbarrett@oceanfirst.com

    The MIL Network

  • MIL-OSI United Nations: Committee on the Elimination of Racial Discrimination Holds Informal Meeting with States Parties to the Convention

    Source: United Nations – Geneva

    The Committee on the Elimination of Racial Discrimination today held an informal meeting with States parties to the International Convention on the Elimination of All Forms of Racial Discrimination.

    Opening the meeting, Michal Balcerzak, Committee Chair, said this year was the sixtieth anniversary of the entry into force of the Convention.  This was a moment of reflection, not only on past achievements, but also on the current and future viability of the treaty body system. The Committee was facing turbulent times, and many challenges were undermining the realisation of human rights and racial equality.

    Mr. Balcerzak called on States parties to renew commitment to fully respect and effectively implement obligations under international human rights law, including the Convention.  Prompt action was needed to end current conflicts, address the root causes of racial discrimination, and prevent further human rights violations targeting people based on their national or ethnic origin and identity.

    Régine Esseneme, Committee Vice-Chair, said the Convention was adopted by the General Assembly in 1965 and entered into force in 1969.  It covered all areas of human rights and fundamental freedoms and had been ratified by 182 countries.  For several years, States parties had submitted fewer reports to the Committee, often choosing to combine reports over longer periods. 

    The discussion with States parties addressed topics including the liquidity crisis facing the Committee and the United Nations treaty body system, cooperation with the Committee, commemoration of the Convention’s sixtieth anniversary, the Committee’s simplified reporting and individual communications procedures, hybrid dialogues, and measures to prevent racial discrimination.

    Speaking in the discussion were Mexico, Finland, Belgium, Bolivia, Spain, Brazil, Venezuela, China and Cuba.

    The programme of work and other documents related to the Committee’s one hundred and fifteenth session can be found here.  Summaries of the public meetings of the Committee can be found here, while webcasts of the public meetings can be found here.

    The Committee will next meet in public on Friday, 25 April at 3 p.m. to hold a half-day general discussion on reparations for the injustices from the transatlantic trade of enslaved Africans, their treatment as chattel, and the ongoing harms to and crimes against people of African descent.

    Opening Statements

    MICHAL BALCERZAK, Committee Chair, said this year was the sixtieth anniversary of the entry into force of the International Convention on the Elimination of All Forms of Racial Discrimination.  This was a moment of reflection, not only on past achievements, but also on the current and future viability of the treaty body system. The Committee was facing turbulent times, and many challenges were undermining the realisation of human rights and racial equality.

    In the last 60 years, there had been progress in the fight against racial discrimination.  However, progress had not occurred at the pace and to the extent needed and expected by marginalised groups and victims of racial discrimination, and today, there were serious risks of backsliding.  The Committee called on States parties to renew commitment to fully respect and effectively implement obligations under international human rights law, including the Convention.  Prompt action was needed to end current conflicts, address the root causes of racial discrimination, and prevent further human rights violations targeting people based on their national or ethnic origin and identity.

    The United Nations treaty body system was faced by an unprecedented crisis marked by acute financial and liquidity constraints.  These challenges struck at the very core of the Committee’s ability to carry out its mandate effectively.  The downsizing of resources had already begun to significantly impair the Committee’s work. Under the Convention, the expenses of the Committee were required to be borne by State parties.  The current situation raised serious concerns about the sustainability of this obligation.  The Committee was facing the real risk of reducing its activities, and, in a worst-case scenario, cancelling sessions due to lack of resources.  This year, the second and third sessions of the Committee were not yet confirmed.  Weakening of the Committee would not only weaken international human rights oversight but also send a troubling signal about the collective will to combat racial discrimination globally. 

    In addition, the Committee was increasingly impacted by a drop in timely reporting by States parties – a trend that undermined its ability to plan and hold dialogue sessions, notably for the years 2026 and 2027.  But despite these challenges, the Committee remained steadfast.  On average, it reviewed 18 State party reports per year, consistently worked to refine its methods of work, and continued to engage in meaningful, forward-looking initiatives in line with its mandate.

    This year marked the sixtieth anniversary of the Convention, which was adopted on 21 December 1965.  To mark this auspicious occasion, the Committee and its Secretariat were working in collaboration with partners on a year-long campaign throughout 2025.  The campaign highlighted the foundational importance of the Convention for the fight against racial discrimination, and focused attention on its continued relevance today.  It would stimulate discussions on effective practices to address structural and emerging challenges in preventing and combatting racial discrimination and aimed to renew the commitment for the effective implementation of the Convention. 

    The Committee encouraged all States parties to the Convention to contribute to the anniversary by taking concrete action to implement the Convention, including jointly with other States and stakeholders, at the local, national, regional or international levels. The Committee would hold a high-level commemorative event, tentatively scheduled to take place on 4 December 2025. The active support of States parties and all stakeholders in the organization of this event was crucial for its success.

    The Committee had adopted general recommendation 37 in 2024 on equality and freedom from racial discrimination in the enjoyment of the right to health.  This general recommendation clarified the obligations undertaken under the Convention regarding the right to health and provided guidance on measures to address concerns in line with the Convention. 

    Currently, the Committee was working with the Committee on Migrant Workers on a joint general recommendation on xenophobia; regional consultations were held last year to inform the drafting. It was also elaborating a general recommendation on reparations, which would provide guidance on the scope and content of the right to reparations under international human rights law, particularly concerning the harms of the forced capture of Africans, the transatlantic transport of those captives, their enslavement as chattel, and the massive and continuing harms suffered by their descendants.

    The Committee called on States parties to provide advice on how to address the unprecedented crisis affecting the treaty body system.

    RÉGINE ESSENEME, Committee Vice-Chair, said the Convention was adopted by the General Assembly in 1965 and entered into force in 1969.  It covered all areas of human rights and fundamental freedoms and had been ratified by 182 countries.  These States parties had committed to engaging in the Committee’s periodic review process, under which each State party was obliged to submit an initial report after one year of ratification and subsequent periodic reports every two years.  For several years however, States parties had submitted fewer reports to the Committee, often choosing to combine reports over longer periods. 

    Most States had submitted to the Committee’s simplified reporting procedure, but given its resource limitations, the Committee prioritised States with reports overdue by more than 10 years for this procedure.  Currently, 78 States parties had significant delays in the submission of reports.  The Committee sought States’ views on this issue and on methods of fostering collaboration with States parties to ensure that they honoured their commitments under the Convention.

    Discussion with States Parties

    In the ensuing discussion, representatives of States parties said, among other things, that the Convention, the first fundamental human rights treaty, was an essential tool for combatting racial discrimination.  Speakers expressed commitment to fulfilling their obligations under the Convention and eliminating racial discrimination, xenophobia and social exclusion, and to cooperating with the Committee.  They thanked the Committee for its work in eliminating racial discrimination. Cooperating with the Committee gave States the ability to ensure the highest possible implementation of the Convention.

    Many speakers said they would join in the commemoration of the sixtieth anniversary of the Convention, which offered an opportunity for renewing commitments under the Convention and addressing modern challenges related to racial discrimination, including hate speech, discrimination and xenophobic practices.  They expressed concern about the United Nations’ liquidity crisis, which impacted the Committee’s work.

    Speakers presented measures to prevent racial discrimination and promote racial equality; recognise the status and promote the rights of indigenous peoples, as well as their participation in policy development; and participate in the Committee’s reporting procedure and follow-up on the recommendations of the Committee.

    Some speakers proposed that the Committee held hybrid meetings with States when necessary to promote the participation of civil servants with specific knowledge and civil society in States with limited resources.  One speaker called for the hybrid meeting tools used by the United Nations to guarantee the equal participation of all States.  Some speakers called on the Committee to strengthen its cooperation with regional mechanisms and other international bodies, including the United Nations Office on Genocide Prevention and the Responsibility to Protect.

    One speaker said that individual communications needed to be handled effectively.  How did the Committee monitor the implementation of its decision on individual communications?

    Some speakers noted that the Committee had decided to extend the simplified reporting procedure to all States parties, but at the same time requested many States to continue using the regular reporting procedure as their reports were not overdue by 10 years. Why had the Committee decided to do this?  The simplified reporting procedure would ease States’ reporting burden.  Without this procedure, future report submissions could be delayed, they said.  Other speakers, however, said that there were disadvantages to the simplified procedure, expressing support for the regular reporting procedure.  One speaker said that efforts to simplify reporting procedures needed to be balanced with efforts to establish a predictable reporting calendar.

    One speaker expressed concern regarding unilateral coercive measures and human rights violations against migrants, including their illegal deportation to other States.  Another speaker raised the issue of trans-Atlantic slavery, expressing support for a new United Nations instrument on the rights of people of African descent.

    Statements and Responses by Committee Experts

    MICHAL BALCERZAK, Committee Chair, thanked States for the proposals they had put forward.  He said that the Committee offered the possibility of hybrid dialogues, which were not currently shortened compared to regular dialogues.  The Committee regretted that it did not have the possibility to hold hybrid meetings with other stakeholders.

    The simplified reporting procedure was a crucial issue.  There was a problem with this procedure in that it was not, in fact, simple from the perspective of the Committee and its secretariat.  If the Committee had more capacity to prepare lists of issues prior to reporting, it would have done so.

    The Chair encouraged States parties to engage in events to commemorate the sixtieth anniversary of the Convention, information on which was available online.  He also called for further dialogue between the Committee and regional bodies.

    NOUREDDIN AMIR, Committee Expert, said that Committee Experts were elected by States every two years on a rolling basis.  They sought to achieve States’ aspirations to better fulfil their human rights obligations. The Committee was committed to combatting racism and injustice, which was everywhere.  It needed to promote discussions between belligerents in the wars that were currently raging.  Women and children were being killed in Palestine.  States needed to take responsibility for these issues, stop criminals, and seek justice for those whose voices were not heard.  The International Court of Justice needed to be able to condemn States that carried out forbidden acts against international law.

    STAMATIA STAVRINAKI, Committee Expert, said that the Committee’s individual communications procedure had not yet reached its full potential, as around one-third of States parties to the Convention had not accepted the procedure.  Last year, the Committee adopted decisions on 48 complaints and found violations in 27 of them.  The Committee advocated for this procedure, which created an opportunity to remedy harms caused by racial discrimination and to prevent future violations.  States parties could deploy junior professionals to support the Working Group on individual communications.  The Committee invited States to accept the individual communications procedure, which would reenforce their efforts to combat racial discrimination effectively.

    FAITH DIKELEDI PANSY TLAKULA, Committee Expert, said that the Committee had strengthened its relationship with regional human rights mechanisms, contacting relevant regional bodies regarding their assessment of follow-up efforts to the Committee’s concluding observations.  The concluding observations contained recommendations for improving the implementation of the Convention, which were to be implemented within one year. States parties were required to submit follow-up reports on the implementation of these recommendations, but only one-third of States parties submitted reports, which often did not demonstrate sufficient implementation of the recommendations.  The Committee called on all States to submit these reports.

    VERENE ALBERTHA SHEPHERD, Committee Vice-Chair, expressed pleasure that several States parties from the Group of Latin America and the Caribbean region were attending the meeting. She was the only Expert on the Committee from this region.  She called on these States to promote the appointment of more Experts from the region. It was regrettable that some countries had difficulty in using hybrid tools offered for participation in dialogue, and that some non-governmental organizations could not attend meetings with the Committee.  The Committee would address these issues.

    Ms. Shepherd said that a second International Decade for People of African Descent had been established by the General Assembly.  She called on all States to participate in commemorations of the Decade.  The Committee used an intersectional lens when addressing racial discrimination to address issues such as gender.  In closing, she called on States to financially support the Committee to address its liquidity crisis.

    GAY MCDOUGALL, Committee Vice-Chair, said that the Committee had issued general recommendation 25 on gender, in which it committed to taking an intersectional approach to gender.  The Committee was also committed to assessing the relationship between racial discrimination and economic marginalisation. It was assessing opportunities for decent work for ethnic minorities, as well as access to education and other social services.

    The Committee was concerned by its shrinking resources and capacity to do its work.  It was in the worst situation of any treaty body in terms of resources.  Although it had one of the most ratified treaties, the Committee received among the lowest number of reports.  Why was this?

    RÉGINE ESSENEME, Committee Vice-Chair, said the legal basis for the presentation of reports was article nine, paragraph one of the Convention.  The purpose of the simplified reporting procedure was to encourage States to submit reports.  However, it had not led to an increase in the number of reports that the Committee received. The Committee was affected by a lack of human and financial resources.  The simplified reporting procedure was not simple for the Committee; it was thus the exception and not the rule.  States needed to respect their reporting obligations under the Convention.

    CHINSUNG CHUNG, Committee Expert, said the Committee and all nine treaty bodies had inter-State communications procedures.  The Committee had received and considered three inter-State communications, and amicable solutions to two of these complaints had been found.  A third communication had been received from the State of Palestine against Israel in 2018.  The Committee had issued six recommendations in relation to this communication.  What steps could the Committee take to ensure that its recommendations would be implemented? Ms. Chung encouraged States to cooperate with the inter-State communications procedure.

    IBRAHIMA GUISSE, Committee Expert, said that the Committee had set up an early warning mechanism to prevent existing issues from becoming conflicts.  The mechanism could intervene if there was a lack of legislation or mechanisms to prevent racial discrimination, or to react to discriminatory statements or actions.  The Committee had recently adopted decisions under this procedure related to Sudan and the State of Palestine, which had been cited by the International Court of Justice.  Most conflicts in the world stemmed from racial or religious issues.  The Committee could be a major force to prevent such crises, but it needed the support of States in this regard.

    BAKARI SIDIKI DIABY, Committee Expert, commended the efforts of States parties to engage in dialogue with the Committee.  Some States had not come before the Committee for more than 20 years.  The simplified procedure was set up to assist such States. The Committee also had the power to examine States parties in the absence of a report if necessary and it had done so in the past.  It called on all States to help victims protected by the Convention and to engage in dialogue with the Committee.  States also needed to cooperate with civil society in preparation for dialogues. Some members of civil society who had cooperated with the Committee had been subjected to reprisals; the United Nations had no tolerance for this.

    PELA BOKER-WILSON, Committee Expert, said that reviews of some States parties showed a lack of collection of disaggregated data that allowed for a comparison of population groups. This entailed moving away from traditional data collection practices.  States parties were encouraged to collect data on sex, age, ethnicity, migration status, disability, religion and other distinctions.

    GÜN KUT, Committee Expert, thanked representatives of States parties for engaging with the Committee and expressing support for the Committee’s work.  The Committee was sensitive to States’ questions, demands and criticisms.  The success of the Committee depended on States parties’ will and contributions. The Committee needed regularity in the submission of reports and sufficient follow-up to the Committee’s recommendations, including through follow-up and periodic reports.  The Committee sought to improve its work, but this depended on securing sufficient meeting time and support for the Committee’s secretariat.  States needed to commit to sending reports on time and supporting the financial situation of treaty bodies.

    MAZALO TEBIE, Committee Expert, called on States to support the functioning of the Committee.

    YEUNG KAM JOHN YEUNG SIK YUEN, Committee Expert, said many States parties had not taken steps to criminalise hate speech.  Was this done deliberately to protect politicians?  When the Committee issued a decision on an individual communication, it left it to States parties involved to implement it.  The Committee took up implementation of these decisions in dialogues with States parties.

    Closing Remarks

    MICHAL BALCERZAK, Committee Chair, thanked States parties for attending the meeting.  The Committee would do its best to address the issues raised in the dialogue.  It would work efficiently with States and ensure that it did not disappoint victims of racial discrimination.  The Chair called on States to encourage the commemoration of the sixtieth anniversary of the Convention across the world.  The Committee looked forward to further engagement with States in future.

    ___________

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

    CERD25.003E

    MIL OSI United Nations News

  • MIL-OSI United Nations: Experts of the Committee on the Elimination of Racial Discrimination Commend Ukraine’s Presence Despite the Prevailing Circumstances, Raise Questions on the Treatment of Ukraine’s Indigenous Peoples and the Roma Population

    Source: United Nations – Geneva

    The Committee on the Elimination of Racial Discrimination today concluded its consideration of the combined twenty-fourth to twenty-sixth periodic reports of Ukraine.  Committee Experts congratulated the State party for appearing before the Committee despite prevailing circumstances, while raising questions on the treatment of Ukraine’s indigenous peoples and the Roma population. 

    A Committee Expert congratulated the Ukrainian delegation for making a laudable effort to assess the implementation of the Convention in the country, despite prevailing circumstances. Ukraine should be praised for this effort. 

    Chinsung Chung, Committee Expert and Co-Rapporteur, said the Committee noted that the State party adopted the law on indigenous peoples in 2021.  However, according to information before the Committee, the law only recognised Crimean Tatars, Karaims and Krymchaks as indigenous peoples in Ukraine, while excluding other groups, such as Hutsuls, Lemkos and Gagauz peoples.  Could the delegation provide clarifications on the law on indigenous peoples and how it aligned with international standards? What measures were in place to preserve and promote the identity, language and culture of all indigenous people under the jurisdiction of the State party?

    Ms. Chung also said that according to the representative of the Office of the Ombudsman of Ukraine, around 100,000 Roma became refugees, and around the same number of Ukrainian Roma became internally displaced persons.  Were accurate statistics available?  Did the State party find durable solutions for internally displaced Roma and take measures to ensure that they benefitted from assistance?  What were the State’s plans to include Roma people in recovery and reconstruction programmes?

    The delegation said in 2021, the Ukrainian Parliament adopted the law on indigenous peoples in Ukraine, which was developed through extensive consultations with indigenous groups and civil society, and represented the aspirations of these groups.  In addition, a draft law was developed on the status of the Crimean Tartar people which would be registered in Parliament in the near future. 

    Officially, Ukraine recognised three indigenous groups of peoples, including Crimean Tartars, Karaims and Krymchaks.  The Lemkos people were not considered a national minority group, but rather a cultural group.  The public broadcaster of Ukraine produced programmes for national minorities in their national languages, across broadcast, radio and digital formats. 

    Mr. Lossovskyi said in 2021, the Ukrainian Government approved the Roma strategy, and every two years action plans were prepared for its implementation.  The Roma community was a young community, one of the youngest among the national minorities in Ukraine.  It would be beneficial to use their innovation and abilities in the process of renovating Ukraine when the war was over.  The State was working on providing the Roma with more education. There were many grants provided to Roma for studying in universities. 

     

    Introducing the report, Ihor Lossovskyi, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said during the reporting period from 2014 to 2019, fundamental tragic changes took place in Ukraine, in particular the beginning of the Russian aggression.  At the height of the Russian invasion, in April 2022, Ukraine applied for membership in the European Union, and in June 2022, it received candidate status along with seven relevant recommendations in all spheres of human activity, including recommendation no. 7 on completion of the reform of legislation in the field of national minorities and interethnic relations. 

    To implement these recommendations, Ukraine developed and approved three laws, including the new law on national minorities (communities) of Ukraine, as well as 16 subordinate regulatory legal acts (bylaws) approved by the Government.

    In concluding remarks, Ibrahima Guisse, Committee Expert and Co-Rapporteur, thanked the delegation for the dialogue held, particularly given the context.  War was ended through negotiation and diplomacy, not capitulation. It was hoped this would happen with Ukraine.  The fact that Ukraine was here before the Committee was an example of the State’s willingness to cooperate.

    In his concluding remarks, Mr. Lossovskyi thanked the Committee for their time and interest in the situation in Ukraine.  The Committee’s recommendations were very much appreciated. 

    The delegation of Ukraine consisted of representatives of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience; the Coordination Centre for Legal Aid Provision; the State Committee for Television and Radio Broadcasting of Ukraine; and the Permanent Mission of Ukraine to the United Nations Office at Geneva.

    The Committee will issue its concluding observations on the report of Ukraine after the conclusion of its one hundred and fifteenth session on 9 May 2025.  The programme of work and other documents related to the session can be found here.  Summaries of the public meetings of the Committee can be found here, while webcasts of the public meetings can be found here.

    The Committee will next meet in public on Friday, 25 April at 3.p.m for a half day general discussion on reparations for the injustices from the transatlantic trade of enslaved Africans, their treatment as chattel, and the ongoing harms to and crimes against people of African descent.

    Report

    The Committee has before it the combined twenty-fourth to twenty-sixth periodic reports of Ukraine (CERD/C/UKR/24-26).

    Presentation of Report

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said during the reporting period from 2014 to 2019, fundamental tragic changes took place in Ukraine, in particular the beginning of the Russian aggression, Russia’s brazen destruction of international law, the occupation of the Autonomous Republic of Crimea and the city of Sevastopol, the occupation by the Armed Forces of the Russian Federation and terrorist organizations supported by it of certain parts of the Donetsk and Luhansk regions, as well as the financing by the Russian Federation of terrorist organizations of the occupation administrations. 

    Due to these circumstances, collecting information in the temporarily occupied territories of Ukraine was difficult. As a result of the temporary occupation of the Autonomous Republic of Crimea and the city of Sevastopol by the Russian Federation, and the aggression of the Russian Federation in eastern Ukraine, ensuring the rights of minorities in these areas, especially Crimea, had sharply deteriorated.  Ukrainians and Crimean Tatars, and those who adhered to pro-Ukrainian views, were subject to discrimination in Crimea. 

    During the reporting period, important changes also took place in the religious sphere in Ukraine.  On 15 December 2018, the Unification Council was held, at which representatives of the three Orthodox Churches of Ukraine united into a single church structure, which was called the “Orthodox Church of Ukraine”, and the Metropolitan Epiphany of Kyiv and All Ukraine was elected as its primate.  As of the beginning of 2021, this church jurisdiction had 7,097 religious organizations on the territory of Ukraine, handled by 4,537 clergy. 

    The principles of preventing and combatting discrimination were defined by the 2012 law on the principles of preventing and combatting discrimination in Ukraine.  In May 2014, amendments were made to the law, which improved the legislative definition of discrimination.  In 2019, the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience was established to deal with State policy in the field of national minorities and interethnic relations, freedom of conscience, and freedom of religion. 

    At the height of the Russian invasion, in April 2022, Ukraine applied for membership in the European Union, and in June 2022, it received candidate status along with seven relevant recommendations in all spheres of human activity, including recommendation no. 7 on completion of the reform of legislation in the field of national minorities and interethnic relations.  To implement these recommendations, Ukraine developed and approved three laws, including the new law on national minorities (communities) of Ukraine, as well as 16 subordinate regulatory legal acts (bylaws) approved by the Government. 

    The first stages of the negotiation process with the European Commission regarding Ukraine’s membership in the European Union took place, in particular, the screening of Ukrainian legislation for its compliance with European legislation.  The screening was provided under four subsections on judiciary and fundamental rights: freedom of conscience, freedom of religion; racism, xenophobia, hate speech; racial and ethnic discrimination, including Roma; and rights of national minorities. 

    Based on the results, the European Commission prepared a positive report on the state of Ukrainian legislation and its compliance with European legislation in October 2024.  The next stage of the negotiation process was the preparation of strategic documents, including an action plan to ensure the rights of national minorities in Ukraine, which were in the final stage of preparation. 

    Questions by Committee Experts

    IBRAHIMA GUISSE, Committee Expert and Co-Rapporteur, welcomed that Ukraine had a diverse and high-level delegation.  Ukraine’s presence before the Committee despite the difficult context in the country highlighted the country’s commitment to appear before the treaty bodies. Mr. Guisse then paid tribute to Pope Francis who had been a man of peace. 

    During the period under review, Ukraine had experienced deep upheavals, including the large-scale invasion in 2022, which had given rise to large-scale destruction, human loss and mass displacement. According to information before the Committee, the last census conducted in 2001 showed that the main minority groups included Russians, Belarusians, Moldovans, Crimean Tatars and Bulgarians. Ukraine also has smaller populations of Poles, Romanians, Armenians, Hungarians, Roma and other nationalities.  A subsequent census was supposed to be conducted in 2011, which was postponed until 2020, and had not taken place until now. 

    Other data was also not provided, and the Committee emphasised that the lack of statistics limited the ability to evaluate the enjoyment of different groups of their economic, social and cultural rights.  Were there plans to conduct the census based on the principle of self-identification? What were the measures planned to collect data on the enjoyment of economic and social rights by the different groups under the jurisdiction of the State party? 

    The Committee noted that the legal framework, particularly on principles of preventing and combatting discrimination in Ukraine, did not prohibit discrimination based on all grounds listed in the Convention, particularly national origin and descent.  Were there plans to amend and align the national legislation framework with article 1 of the Convention?  What measures were taken to ensure that the legislative framework prohibited intersecting forms of discrimination? 

    Could the delegation inform the Committee on the implementation of the national human rights strategy for 2015–2020 in 2015 and its action plan?  Was there a timeframe for developing and adopting a strategy on combatting racial discrimination?

    Could the delegation provide information on the mandate and activities of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience?  What were the measures to ensure the consultation and participation of groups vulnerable to racial discrimination in the work of the State Service?  Was the State party planning to establish a central mechanism to coordinate and monitor the implementation of measures designed to combat racial discrimination?

     

    The Committee was concerned that the legislative framework, including the Criminal Code, did not include a definition of all forms of discrimination, or a specific definition of hate speech or sanction for hate speech and crimes.  What measures were being undertaken to review and amend the legislative framework to prohibit all forms of racial discrimination, hate speech and hate crimes in accordance with the Convention? 

    Was the State party planning to amend its Criminal Code, particularly article 161, to remove the requirements and restrictive approach as recommended by the Committee in 2016?  What was the status of the draft law no. 5488 before the Parliament?  How were its provisions in line with the Convention?   

    Could information be provided on the legislative framework on combatting racial discrimination in political discourse, as well as information on complaints received, investigations initiated, and imposed sanctions in this field?  The Committee noted that the law on media included provisions on discrimination and incitement to hatred.  Could clarifications on the law and how its provisions aligned with the Convention be provided?  Could the delegation inform the Committee about measures taken to combat hate speech in the media and over the Internet?  Was there a designated entity to monitor hate speech or avenues to submit complaints by victims? 

    Responses by the Delegation 

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said unfortunately, the last census of Ukraine had taken place in 2001, which was 24 years ago.  There were several reasons for this, including two Ukrainian political revolutions during this time and the beginning of the war with Russia in 2014. The next census had been planned for 2023, but this had been postponed due to the full-scale invasion by the Russian Federation in 2022.  It was impossible in current circumstances to hold another census. 

    Significant work in combatting racial discrimination had been undertaken in the past three to four years.  The State Service of Ukraine for Ethnic Affairs and Freedom of Conscience was established in 2019 and began its work in 2020. The institute directly dealt with issues of national minorities and ethnic policies and consisted of around 40 people. 

    Over the past couple of years, three laws had been adopted by the parliament, including the new law on national minority communities of Ukraine.  This new law was revolutionary, as it described the ethnic policy for Ukraine and prescribed tasks for the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience. According to the law, all those who considered themselves to be national minorities would be recognised by the State as such.  Ukraine had 130 national minorities, and the State took responsibility for all these communities. 

    There was a lack of strict definitions in Ukrainian laws around hate speech and hate crimes.  Ukrainian institutions were working hard to integrate these into Ukrainian legislation.  There was an interagency working group dealing with issues of discrimination, hate speech and hate crime. 

    Questions by Committee Experts

    IBRAHIMA GUISSE, Committee Expert and Co-Rapporteur, appreciated the answers given, noting the circumstances within the country.

    CHINSUNG CHUNG, Committee Expert and Co-Rapporteur, asked for more details on the interagency working group to be provided?  Could more information on the national human rights institution be provided? 

    A Committee Expert said Ukraine’s non-compliance with article 4 was an ongoing issue.  It was strongly recommended that the State follow up on this. 

    Another Expert asked how effective the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience had been in protecting minority rights in Ukraine?  What was the level of participation of national minorities in consultations on State decisions?  Had there been any improvements based on these discussions? 

    A Committee Expert said the situation in Ukraine was incomprehensible.  What could be done about hate speech?  Did Russian people hate Ukrainian people?  Personally, the Expert did not feel this was the case. How could this explain why not everyone opposed the war which continued to take more lives?  While there was hatred, men would continue to wage war. 

     

    FAITH DIKELEDI PANSY TLAKULA, Committee Expert and Follow-Up Rapporteur, expressed gratitude to the State party for responding to the Committee’s request in the one-year time frame, however, many questions by the Committee were not addressed, nor were they provided in the current State report.  Could the State party provide the Committee with the previously requested information in paragraph 16 of the concluding observations? 

    Responses by the Delegation 

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said the questions about the war were philosophical.  This was an existential war for the Ukrainian nation. According to the Russian dictator, Ukrainians did not exist and needed to be re-educated.  To stop the war, the Russian dictator should provide a decree to forces to stop the fight and withdraw from the territory of Ukraine. 

    The Commissioner of Human Rights had a special department focusing on discrimination.  After the screening exercise with the European Union, Ukraine understood there were some gaps in its legislation, particularly when it came to definitions.  Many new laws and bylaws had been approved to fill these gaps, and this was a key focus of the State Service for Ethnic Affairs and Freedom of Conscience. Communication with national minorities was a key step in this regard. 

    Around seven million Ukrainians had left Ukraine as refugees or moved around Ukraine as internally displaced persons. Many people treated the Roma community differently.  The national action plan for the Roma strategy to 2030 was evaluated every two years. Every year, many different roundtables and conferences were organised by the State on the Roma community. 

    Two forums had been organised for the different minorities to discuss any issues they had and how to address them. A forum was organised in Kiev with Polish national minorities, and another one with Greek national minorities. There was a strategy on the development of the Crimea Tartare language.  This year, work had also been finished on the new spelling of the Crimean Tartare language. 

    Questions by Committee Experts

    CHINSUNG CHUNG, Committee Expert and Co-Rapporteur, asked about concrete cases of racially motivated violence and racial profiling, and the measures taken to respond to these cases?  What measures had been taken for increasing public awareness-raising campaigns and other measures to counter incitement to hatred and hate crimes?  The Committee would also like to receive information on measures to prevent discriminatory violence by the police and other law enforcement officers; measures to ensure accountability for incidents of discriminatory violence; and data on these kinds of incidents?

    The Committee was concerned about racist hate speech and discriminatory statements in the public discourse, including by public and political figures and in the media.  How did these victims address their cases, and how effectively were these cases treated?  How many complaints had been received in the last five years, and what was the number of investigations initiated, cases considered before courts, and sanctions imposed on perpetrators?  Could detailed information be provided on complaints registered with the courts, or any other national institution, including the Ukrainian Parliament Commissioner for Human Rights, concerning acts of racial discrimination, racist hate speech and racist hate crimes?

    According to information before the Committee, there were gaps in the implementation of the legal framework, including the lack of specialisation among law enforcement officials and lack of operational standards to handle, register and investigate complaints of racial discrimination and hate crimes.  What measures were being taken to address these concerns, particularly to enhance the capacity of law enforcement officials in handling and investigating complaints related to racial discrimination and hate speech? 

    Information before the Committee indicated that there was a lack of awareness on the rights of victims of racial discrimination and fear of approaching law enforcement officials on this topic.  What measures were being taken to address these issues?  Could a reason be provided for the low rate of complaints at the National Human Rights Commission?  What measures were being taken to enable victims to make complaints more effectively? 

    The Committee welcomed the adoption of amendments in 2024 on the law on free legal aid to allow victims of hate crimes on specific grounds to benefit from secondary legal aid.  However, the information before the Committee indicated that the victims were only entitled to the legal aid at the secondary stage and not to initiate a complaint.  In addition, the implementation of the amendment was postponed until one year after the martial law was abolished.  Could the delegation provide information on these two concerns? 

    Could disaggregated data be provided on complaints by ethnic origin such as by Roma, Jews, Africans and other minorities, as well as by national origin and gender?  Had the complaints changed during the armed conflict, in terms of quantity, nature and results?  What measures were being taken to promote human rights education, including on racial discrimination, in university programmes and teacher training?

    What measures were being taken to raise awareness of the public, civil servants, and law enforcement officials in order to combat societal prejudice against certain minority groups, including the Roma?

    Could accurate statistics of ethnic minorities, including Roma, be provided?  The Committee remained concerned at the persistence of discrimination, stereotypes and prejudices against Roma, including reports of physical attacks and killings. 

    Recent research also demonstrated that the level of antigypsyism in Ukraine was still very high.  According to the social cohesion study, 35 per cent of the Ukrainian population did not want Roma to be in their community at all. What measures had the Government of Ukraine taken to fight antigypsyism? 

    Could data on the education conditions of Roma be provided?  What measures had been taken for improving the situation of education for Roma children? Were they educated in their mother tongue without discrimination?

    The Committee noted the various measures taken by the State party to improve the situation of Roma, including the strategy for the protection and integration of the Roma national minority to 2020 and its action plan.  Could information on the progress and results of strategies and programmes directed at the Roma be provided, particularly the allocated resources to ensure the effective implementation of the strategy and action plan and monitoring of its implementation?  How were members of the Roma ethnic minorities involved in the implementation and monitoring of these policies?  Had the Government consulted with Roma communities when planning and implementing such integration measures, including at the local level?  How were the low levels of funding for these plans being addressed? 

    Responses by the Delegation

    The delegation said the issues affecting the Roma community were a problem, not just for Ukraine but for all European countries.  Prejudices still existed, however, during the war, many Roma men had served in the Ukrainian armed forces and in some cases sacrificed their lives, which had changed the attitude of Ukrainians towards Roma people.  A unity and diversity programme was implemented last year, which was a Ukrainian national cultural programme, with training for Ukrainian police officers. 

    The lack of documents in Roma communities was an issue but this was being addressed through regular visits to regions where the Roma community lived.  Thousands of Roma people had been provided with new documents.

    In 2023, around 60 consultations were organised with different national minority groups.  Permanent consultations and meetings were held with Roma communities. The consultations included members of all relevant ministries.  The next meeting had been planned for the end of April.  April 8 was International Roma Day and a large event had been organised in Kiev, including a roundtable and an all-day conference with the participation of ambassadors and the diplomatic corps.  On the same day, several regions also organised International Roma Day celebrations with different events. 

    Questions by Committee Experts

    A Committee Expert said the implementation of the Committee’s recommendations were lacking.  How were the stakeholders in the consultations selected? The Expert expressed hope that the war would end soon with a fair and sustainable solution.  It was important to remember that the unity towards Roma people should be sustained after the war, and that the stereotypes did not return. 

    FAITH DIKELEDI PANSY TLAKULA, Committee Expert and Follow-Up Rapporteur, said the Committee’s recommendations regarding measures taken to conduct training to raise awareness on the amendments to article 161 of the Criminal Code had not been addressed, and urged the State party to provide this information. 

    Another Expert asked what existing mechanisms were in place to receive complaints from victims of hate crimes? Were they user friendly?

    A Committee Expert asked whether the education system in the State party allowed for the type of education help to prevent hate crimes and racial intolerance for children?  Were there any significant numbers of people of African descent in the State party?  Would Ukraine support the Second Decade for People of African Descent? 

    IBRAHIMA GUISSE, Committee Expert and Co-Rapporteur, asked if Ukraine’s desire to align itself with the European Union’s legislation on hate speech was to address hate speech, or to bring its legislation into line with that of the European Union? 

    An Expert asked if the outcome of today’s dialogue would be brought to the attention of the media?

    Responses by the Delegation

    The delegation said if the Committee approved, Ukraine would provide information to the media about the meeting. Regardless of the ethnicity or culture of any citizen, they could contact the police and make a complaint. There were special school curricula on tolerance and education.  There should be more education in schools, from the youngest level possible. 

    There was an African community in Ukraine; it was not very big but its members were consulted on many issues. The African community had never informed the Government about any issues when dealing with the Ukrainian community. 

    The legal aid system of Ukraine provided several services, including primary and secondary legal aid and access to alternative dispute resolutions.  Regular targeted information campaigns were conducted on the right to legal aid, to provide empowerment for vulnerable groups and build trust in the legal aid system in Ukraine.  There had been only 91 cases of requests for legal aid during the past three years.  There were 500 legal aid centres across Ukraine, as well as an online service. 

    Six months ago, the Government adopted the list of the languages of the national minorities of Ukraine which were under threat of disappearance, and this included the Roma language. Currently, there was a special working group of experts who were familiar with these languages working on initiatives in this regard.

    In a brief comment at the end of the first meeting, MICHAL BALCERZAK, Committee Chair, said the dialogue was public and it was up to Ukraine if it wished to produce information on the discussion. 

    Questions by Committee Experts

    IBRAHIMA GUISSE, Committee Expert and Co-Rapporteur, asked if measures were planned to assess and review the law on national minorities (communities) of Ukraine that aimed to eliminate all discriminatory provisions?  What measures had been taken to consult and ensure the participation of all ethnic and national minority groups in the process of developing and drafting the law and its amendments? 

    While noting the measures taken by the State party to protect Crimean Tatars, in particular those who fled Crimea after 2014, the Committee remained concerned about reports that Crimean Tatars in regions under the authority of the State party faced difficulties in accessing employment, social services and education, and did not receive assistance. What mechanisms had been developed to ensure consultations with ethnic minority groups? 

    Did the State party have information concerning the National Council for Interethnic Harmony?  What measures had been taken by the State party to support women belonging to ethnic or national minority groups in exercising their political rights, including participation in public affairs and raising awareness on their rights and the vital impact of their participation?  What measures were being taken to mitigate the impact of the ongoing conflict on the participation of women in politics?   

     

    According to information received, legislative amendments relating to religious organizations entered into force on 23 September 2024, invoking “national security” as a ground for restricting freedom of religion or belief and freedom of religious association. However, this was not considered a permissible grounds for restriction of freedom of religion under the Convention. What were the measures restricting freedom of religion and belief and their impact on the ethno-religious communities concerned?  Information received referred to practices tending to prohibit the activities of religious organizations, specifically the activities of the Russian Orthodox Church. Could information be provided on the necessity and proportionality of such punitive measures?

    The situation of migrants, asylum seekers, refugees, and stateless persons in Ukraine had been significantly impacted by recent legal and practical developments, particularly since the introduction of martial law in February 2022.  The current legal framework and its implementation presented several challenges that were inconsistent with the Convention. 

    The refugee status determination process in Ukraine did not align with international standards, leading to inconsistent application of legal interpretations and time limits for lodging asylum applications.  This often resulted in the rejection of asylum claims.  New practices had restricted access to asylum and statelessness determination procedures, especially for individuals with ties to the Russian Federation and Belarus.  The State Migration Service often issued oral refusals for asylum applications without official decisions, citing martial law as a reason.  This practice had been recognised by courts as illegal, yet it persisted, leaving applicants in legal limbo.

    How would Ukraine address the inconsistencies in the asylum procedures to ensure alignment with international standards and the Convention?  What legal amendments were introduced under martial law and what was their impact on the rights of refugees and stateless persons?  What procedural safeguards were in place to protect individuals from forcible deportation?  What steps were being taken to improve access to the asylum and statelessness determination procedures, particularly for individuals with ties to the Russian Federation and Belarus? 

    How was the Government addressing the challenges posed by the suspension of diplomatic relations with Russia in verifying nationality in statelessness determination procedures?  What plans did the Ukrainian Government have to develop an integration strategy for refugees and improve reception conditions for asylum seekers?  What steps were being taken to address the unlawful practice of issuing verbal refusals for asylum applications and ensure that applicants received official decisions?

    The Government of Ukraine had made significant strides in addressing statelessness since 2020, including the introduction of a statelessness determination procedure. Despite these efforts, several challenges remained, particularly in the implementation of the procedure and the accessibility of necessary documentation for applicants, which was further exacerbated by the conflict. 

    On 22 January 2024, draft law no. 11469, titled “on amendments to certain laws of Ukraine on ensuring the right to acquire and preserve Ukrainian citizenship” was registered in the Ukrainian Parliament.  The draft law, if passed, could result in the loss of Ukrainian citizenship for residents in Russian-occupied Ukrainian territories, who often had to obtain Russian passports to access basic services, employment, and social benefits. How did the Ukrainian Government plan to address the potential risk of stripping Ukrainian citizenship from residents of occupied territories who acquired Russian citizenship under duress or due to essential needs, such as access to basic services and employment?

    MICHAL BALCERZAK, Committee Chair, said Kiev had been under attack the night before and there had been casualties.  This was a serious and sad situation.  The Committee understood the situation and was very concerned about these tragic events. 

    Responses by the Delegation

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said many members of the delegation had barely slept the night before. Russia had launched missiles from the Black Sea and inside Russia and had bombed Kiev.  Up to now, there were 10 citizens who had been killed and 100 wounded, including children.  Every day, there were peaceful victims of this tragic and bloody war.  The delegation in Ukraine had lost contact with the Committee at the beginning of the session and missed some questions.

    Regarding the law on ethnic minorities, several meetings had been organised with national minorities during the development of the law, predominantly online due to the war.  In December 2022, Parliament adopted the law. At the request of some national minority organizations, the State used the term “communities” instead of minorities. The law encompassed all groups of ethnic peoples, which was around 130 according to the most recent census. 

    Ukraine did not have many new asylum seekers as the situation in the country was not sustainable for a peaceful life. 

    The Ombudsman’s Office was referred to as the Parliamentary Commission of Human Rights.  The independence of this Office was guaranteed, ensuring it could function without undue influence from any external entities.  This enabled the Office to effectively address human rights and issues of non-discrimination.  Its annual report outlined steps taken to combat discrimination. It was a large institution with around 500 employees.  There were branches located across 24 regions of Ukraine.  In 2024, there were 454 complaints received by the Office.  The Office monitored all issues of non-discrimination.  All reports of the Office were public and could be found online.   

    Questions by Committee Experts

    IBRAHIMA GUISSE, Committee Expert and Co-Rapporteur, expressed sorrow at the recent shocking events which had wracked the Ukrainian capital.  What was the impact of martial law on asylum seekers, refugees and stateless persons? 

    CHINSUNG CHUNG, Committee Expert and Co-Rapporteur, asked about the situation of lesbian, gay, bisexual, transgender and intersex persons belonging to minority groups, as well as the situation of elderly people belonging to these groups?  What was the situation of migrant workers, particularly in this situation of armed conflict?

    A Committee Expert asked how far Ukraine had gone in implementing the decision of the European Court of Human Rights on a case versus Ukraine?   

    Another Committee Expert congratulated the Ukrainian delegation for making a laudable effort to assess the implementation of the Convention in Ukraine, despite prevailing circumstances. Ukraine should be praised for this effort.  The Expert was concerned about allegations of racism at the Ukrainian Polish border. Had there been any follow-up on such reports?  How many cases had been brought to court? 

    There had been allegations of racism in sport, including with a Brazilian footballer who was banned for one game after reacting to crowds calling him monkey.  How had this case been handled?  Ukraine should be congratulated for adopting the law on stateless in 2021.  How many individuals had benefitted from the enforcement of that law?  How did the State party plan to provide Roma with national documents? 

    Another Expert said African nationals had been facing discrimination at the borders. 

    What measures were being taken by the State party to ensure the protection, safety and security of all persons living in its jurisdiction? 

    Responses by the Delegation

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said Ukrainian legislation underscored equal rights for men and women. Half of the ministers of the Government were women.  Many women in Ukrainian society occupied high-level positions.  Women from Roma communities were among the most vulnerable. The State had organised several events, including roundtables, which assisted Roma women to find their place in society. 

    Due to the war, Ukraine no longer had many migrant workers.  It was hoped that this would change after the war.  The country would need many workers for innovation and to help rebuild Ukraine. It was hoped workers from many countries would come to Ukraine after the war and help rebuild the hundreds of cities which had been destroyed or partially destroyed. 

    Mr. Lossovskyi said he had not heard of cases of discrimination on the border between Ukraine and Poland.  The case of discrimination regarding the Brazilian football player was an awful occurrence which was not typical for Ukraine. There had been a police investigation, but he could not recall the exact outcome. 

    The delegation said the aggression by the Russian federation had led to a huge influx across Ukraine’s borders. The Government took all accounts of discriminatory treatment very seriously.  Despite difficult conditions, the Government had managed to keep all checkpoints on the borders open. 

    Mr. Lossovskyi said in 2022, a pilot project was launched to provide documents to Roma people in a more effective way.  This was organised in a region where the majority of Roma people lived.  Every year, the State continued this work and made several visits to these places. 

    The delegation said the draft law 5488 was being considered before parliament.  It was hoped the law would be adopted during the current session of Parliament.  The draft law provided for the term “intolerance” and addressed issues under this topic.  All law enforcement agencies were currently working together to introduce the necessary amendments to the Criminal Code.  Police officers had completed specialised human rights training.  Outreach activities, including in schools, were carried out to combat negative stereotypes on the Roma population. 

    Questions by Committee Experts

    CHINSUNG CHUNG, Committee Expert and Co-Rapporteur, said the Committee believed in the necessity of investigating and documenting all human rights violations and abuses committed in the context of the ongoing armed conflict and invasion initiated by the Russian Federation against the State party on 24 February 2022.  What measures had been taken to ensure prompt and impartial investigations?  Could the delegation provide information on investigations and prosecutions into allegations of human rights violations and abuses during the armed conflict with the Russian Federation?

     

    On 11 October 2018, the Holy and Sacred Synod of the Istanbul-based Ecumenical Patriarchate granted autocephaly to a new church, the “Orthodox Church of Ukraine”.  This led to tensions with the Ukrainian Orthodox Church.  The Church was formerly linked to the Russian Orthodox Church under the Patriarch in Moscow, but stated that it severed those ties in May 2022, following the full-scale invasion by the Russian Federation. 

    It was reported that on 23 September 2024 in territory controlled by the Government of Ukraine, new legal provisions regarding religious organizations entered into force, prohibiting the activities of foreign religious organizations based in a State responsible for armed aggression against Ukraine or occupation of its territory, and specifically prohibiting the activities of the Russian Orthodox Church. Could detailed explanations be provided on this and on measures to ensure the respect of the rights to freedom of thought, conscience and religion?

    According to media reports in January 2025, the State party announced the capturing in Russia of two soldiers from the Democratic People’s Republic of Korea, and indicated that they were detained and provided with medical care.  Could the delegation provide information on the situation of these two prisoners of war? What were the legal measures taken against them?  Were there more prisoners of war captured by the State party from other nationalities, including mercenaries? 

    The Committee noted that the State party adopted the law on indigenous peoples in 2021.  However, according to information before the Committee, the law only recognised Crimean Tatars, Karaims and Krymchaks as indigenous peoples in Ukraine, while excluding other groups, such as Hutsuls, Lemkos and Gagauz peoples.  Could the delegation provide clarifications on the law on indigenous peoples and how it aligned with international standards?

    Were there plans to assess and review the law?  What was the situation of the Hutsuls, Lemkos and Gagauz peoples?  What measures were in place to preserve and promote the identity, language and culture of all indigenous people under the jurisdiction of the State party?  Could information be provided on the situation of internally displaced Crimean Tatars, and measures to ensure their access to education, housing, employment, healthcare services and humanitarian assistance?  Was the State party taking measures in consultation with the Crimean Tatar community to find durable solutions for an appropriate settlement of Crimean Tatars in Ukraine?

    The Committee was concerned that during the war, persons belonging to minorities, such as Roma, had difficulties in registering as internally displaced persons and having access to social assistance.  According to the representative of the Office of the Ombudsman of Ukraine, around 100,000 Roma became refugees, and around the same number of Ukrainian Roma became internally displaced persons.  Were accurate statistics available on the Roma?  Did the State party find durable solutions for internally displaced Roma and take measures to ensure that they benefitted from assistance?  What were the State’s plans to include Roma people in recovery and reconstruction programmes?

    What efforts were being made to restore linkages between displaced children and their families?  What efforts were being made to ensure access to education and basic services for displaced children?

    Ukraine’s inadequate response to hate crimes against migrants, African and Asian students and other foreigners had previously attracted international criticism.  What was the situation of non-citizens, particularly migrants, refugees and asylum seekers, and people of African and/or Asian descent during the armed conflict?  Could the delegation provide clarification on the situation of detained undocumented migrants and non-citizens?  Could the delegation also please provide information on measures to ensure their access to education, housing, employment, healthcare services and humanitarian assistance?

    Responses by the Delegation

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said Ukraine did not refer to what was going on in Ukraine as conflict. This was a bloody, existential, colonial war with Russia, not simply a conflict.  In 2018, the Ukrainian Church received independence from the Patriarchal Eastern Christianity Church based in Istanbul, Türkiye.  This was a revolutionary decision, as Ukraine was a big country and did not have an orthodox church.  Now there was an independent church of Ukraine, like all other Christian Orthodox countries.  No other activities of other churches were forbidden in Ukraine.  The only restrictions were for the Russian Orthodox Church, which had restricted activity on the territory of Ukraine. This was because it was an accompaniment of the Russian aggression which had destroyed the country and killed hundreds of thousands of people. 

    Ukraine provided the international standard for prisoners of war in their prison facilities, which were regularly visited by the Ukrainian Ombudsman.  In 2021, Ukraine adopted the law on indigenous peoples and consulted with many minorities on this law.  Indigenous peoples were defined as those who lived on the territory of Ukraine and did not have a mother country.  The Lemkos people were not considered a national minority group, but rather a cultural group. 

    In 2021, the Ukrainian Government approved the Roma strategy, and every two years action plans were prepared for its implementation.  The Roma community was a young community, one of the youngest among the national minorities in Ukraine.  It would be beneficial to use their innovation and abilities in the process of renovating Ukraine when the war was over.  The State was working on providing the Roma with more education.  There were many grants provided to Roma for studying in universities. 

    The delegation said in 2021, the Ukrainian Parliament adopted the law on indigenous people in Ukraine, which was developed through extensive consultations with indigenous groups and civil society, and represented the aspirations of these groups.  In addition, a draft law was developed on the status of the Crimean Tartar people which would be registered in Parliament in the near future. 

    To ensure prisoners of war were not tortured, relevant legislation and policies had been developed.  Three legislative acts had been produced to regulate these affairs. 

    Questions by Committee Experts

    CHINSUNG CHUNG, Committee Expert and Co-Rapporteur, asked if there were representative bodies of minorities inside the Cabinet of Ministers of Ukraine?  How did the State party ensure consultations with all indigenous peoples under the framework of this law? 

    Another Expert said 10 to 20 per cent of Ukrainian Roma did not have identity documents?  Was there a provision for determining statelessness in the act on statelessness?  Did the Roma community benefit from universal birth registration? 

    A Committee Expert asked how many of the ethnic and national minorities participated in the relevant bodies in the Government?  How many Roma, indigenous, or migrant women had been hired or granted responsibility positions, or were integrated in the responsibility of the work? 

    Responses by the Delegation

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, said when the law on indigenous peoples was adopted, several bylaws were prepared for the implementation of the law.  According to one of the bylaws, Crimean Tatars regularly consulted with the Government.  Only during the population census could the Government request information about the ethnic groups.  Sometimes women with high-ranking positions did not disclose their ethnicity.  It was up to people to declare this. 

    The delegation said due to the Russian full-scale invasion, there were problems preparing full statistical information on ethnic minorities.  The legal aid system in Ukraine had provided legal assistance to more than 1,000 Roma people over the past three years.  Most of these related to the processing of identity documents.  Secondary legal aid had been provided for 27,000 internally displaced people over the past three years, due to the full-scale invasion. 

    Officially, Ukraine recognised three indigenous groups of peoples, including Crimean Tartars, Karaims and Krymchaks.  Crimean Tartars were represented by an executive body; the spiritual administration of Ukraine represented the Karaim people; and there was no official information regarding a body for the Krymchaks, although they had the full rights to establish such a body under law. 

    Currently, there was no definition of hate speech under Ukrainian law.  The Government of Ukraine had prepared a draft roadmap covering this issue. In Ukraine, a working group made up of State authorities and public organizations was working on a definition of hate speech and establishing administrative and criminal liability depending on the severity of the crime. 

    The public broadcaster of Ukraine continued to create a single information space for minorities.  The broadcaster produced programmes for national minorities in their national languages, across broadcast, radio and digital formats.  The State bodies would do their best to cover all the information needs of the national minorities in Ukraine. 

    Closing Remarks

    FAITH DIKELEDI PANSY TLAKULA, Committee Expert and Follow-Up Rapporteur, said the Committee would send Ukraine concluding observations after the dialogue, with specific recommendations to be enacted within a period of one year. 

    IBRAHIMA GUISSE, Committee Expert and Co-Rapporteur, thanked the delegation for the dialogue held, particularly given the context.  War was ended through negotiation and diplomacy, not capitulation.  It was hoped this would happen with Ukraine. The fact that Ukraine was here before the Committee was an example of the State’s willingness to cooperate. Ukraine was also meeting with the Committee against Torture at the same time, which may have weakened Ukraine’s ability to provide comprehensive answers. 

    IHOR LOSSOVSKYI, Deputy Head of the State Service of Ukraine for Ethnic Affairs and Freedom of Conscience, thanked the Committee members for their time and interest in the situation in Ukraine.  The Committee’s recommendations were very much appreciated. 

    MICHAL BALCERZAK, Committee Chair, said racial discrimination was about ethnic and national origin.  The Committee was concerned when ethnic minorities were denied their identity.  This led to wars.  It was now the sixtieth anniversary of the Convention, and the first composition of the Committee had included an expert of Ukrainian origin.

    ___________

    Produced by the United Nations Information Service in Geneva for use of the media; 
    not an official record. English and French versions of our releases are different as they are the product of two separate coverage teams that work independently.

     

    CERD25.002E

    MIL OSI United Nations News

  • MIL-OSI: AppFolio, Inc. Announces First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    SANTA BARBARA, Calif., April 24, 2025 (GLOBE NEWSWIRE) — AppFolio, Inc. (NASDAQ: APPF) (“AppFolio” or the “Company”), a technology leader powering the future of the real estate industry, today announced its financial results for the first quarter ended March 31, 2025.

    “AppFolio’s first quarter results underscore that our ongoing commitment to delivering industry-leading innovation and exceptional service is driving new customer adoption of our products and services,” said Shane Trigg, President and CEO, AppFolio. “By connecting our acquisition of LiveEasy with new industry leading partners, such as Zillow and Second Nature, all enabled through FolioSpace, we have accelerated our resident strategy creating value for our customers. We are well positioned to win for all stakeholders as the platform powering the future of the real estate industry.”

    Financial Highlights for First Quarter of 2025

    • Revenue grew 16% year-over-year to $218 million.
    • Total units under management grew 6% year-over-year to 8.8 million.
    • GAAP operating income was $34 million, or 15.5% of revenue, compared to operating income of $34 million, or 18.2% of revenue in Q1 2024.
    • Non-GAAP operating income was $53 million, or 24.3% of revenue, compared to an operating income of $48 million, or 25.7% of revenue, in Q1 2024.
    • Net cash provided by operating activities was $38 million, or 17.7% of revenue, compared to $43 million, or 22.9% of revenue, in Q1 2024.

    Financial Outlook
    Based on information available as of April 24, 2025, AppFolio’s outlook for fiscal year 2025 follows:

    • Full year revenue is expected to be in the range of $920 million to $940 million.
    • Full year non-GAAP operating margin as a percentage of revenue is expected to be in the range of 24.5% to 26.5%.
    • Diluted weighted average shares outstanding are expected to be approximately 37 million for the full year.

    Stock Repurchase Program

    On April 23, 2025, AppFolio’s Board of Directors (the “Board”) authorized a $300.0 million share repurchase program (the “2025 Stock Repurchase Program”) relating to the Company’s outstanding shares of Class A common stock. Under the 2025 Stock Repurchase Program, the Company is authorized to repurchase shares of its Class A common stock from time to time in open market purchases or privately negotiated transactions. The 2025 Stock Repurchase Program does not obligate the Company to repurchase any minimum dollar amount or number of shares, has no expiration date, and can be modified, suspended or terminated at any time and for any reason. The timing and actual number of shares repurchased, will depend on a variety of factors, including price, corporate and legal requirements, market conditions and other factors. The 2025 Stock Repurchase Program replaces the Company’s previously reported $100 million stock repurchase program, which has been substantially exhausted.

    Conference Call Information
    As previously announced, the Company will host a conference call today, April 24, 2025, at 2:00 p.m. Pacific Time (PT), 5:00 p.m. Eastern Time (ET), to discuss the Company’s first quarter financial results. A live webcast of the call will be available at: https://edge.media-server.com/mmc/p/994jmsnj. To access the call by phone, please go to the following link: https://register-conf.media-server.com/register/BIec9db96ea67145e5b35acbb6ce94b6ad, and you will be provided with dial in details. A replay of the webcast will also be available for a limited time on AppFolio’s Investor Relations website at https://ir.appfolioinc.com/news-events/events.

    The Company also provides announcements regarding its financial results and other matters, including SEC filings, investor events, and press releases, on its Investor Relations website at https://ir.appfolioinc.com/, as a means of disclosing material nonpublic information and for complying with AppFolio’s disclosure obligations under Regulation FD.

    About AppFolio
    AppFolio is a technology leader powering the future of the real estate industry. Our innovative platform and trusted partnership enable our customers to connect communities, increase operational efficiency, and grow their business. For more information about AppFolio, visit ir.appfolioinc.com.

    Investor Relations Contact:
    Lori Barker
    ir@appfolio.com

    Use of Non-GAAP Financial Measures
    Reconciliations of current and historical non-GAAP financial measures to AppFolio’s financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables entitled “Statement Regarding the Use of Non-GAAP Financial Measures.”

    AppFolio is unable, at this time, to provide GAAP equivalent guidance measures on a forward-looking basis for non-GAAP operating margin because certain items that impact this measure are uncertain, out of our control, or cannot be reasonably predicted, such as charges related to stock-based compensation expense. The effect of these excluded items may be significant.

    Forward-Looking Statements
    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements are subject to considerable risks and uncertainties. Forward-looking statements include all statements that are not statements of historical fact contained in this press release, and can be identified by words such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “future’” “predicts, “projects,” “target,” “seeks,” “contemplates,” “should,” “will,” “would” or similar expressions and the negatives of those expressions. In particular, forward-looking statements contained in this press release relate to future operating results and financial position, including the Company’s fiscal year 2025 financial outlook, anticipated future expenses and investments, the Company’s business opportunities, the impact of the Company’s strategic actions and initiatives, the effect of the Company’s 2025 Share Repurchase Program, the potential benefits and effect of the Company’s resident experience related services, including FolioSpace, and their impact on the Company’s plans, objectives, expectations and capabilities.

    Forward-looking statements represent AppFolio’s current beliefs and expectations based on information currently available and speak only as of the date the statement is made. Forward-looking statements are subject to numerous known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. The risks, uncertainties and other factors that may cause the Company’s actual results, performance or achievements to materially differ from those expressed or implied by these forward-looking statements include those risks, uncertainties and other factors described in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, which was filed with the SEC on February 6, 2025, as such risk factors may be updated from time to time in our subsequent filings with the SEC, and the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recently filed Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as well as in the Company’s other filings with the SEC. You should read this press release with the understanding that the Company’s actual future results may be materially different from the results expressed or implied by these forward-looking statements.

    The Company undertakes no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law.

     
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)
    (in thousands)
           
      March 31,
    2025
      December 31,
    2024
    Assets      
    Current assets      
    Cash and cash equivalents $ 56,933     $ 42,504  
    Investment securities—current   153,881       235,745  
    Accounts receivable, net   27,462       24,346  
    Prepaid expenses and other current assets   33,738       32,807  
    Total current assets   272,014       335,402  
    Property and equipment, net   23,413       24,483  
    Operating lease right-of-use assets   16,971       17,472  
    Capitalized software development costs, net   13,649       15,429  
    Goodwill   96,410       96,410  
    Intangible assets, net   46,500       49,057  
    Deferred income taxes   82,451       76,910  
    Other long-term assets   13,325       11,515  
    Total assets $ 564,733     $ 626,678  
    Liabilities and Stockholders’ Equity      
    Current liabilities      
    Accounts payable $ 4,934     $ 2,378  
    Accrued employee expenses   21,775       30,157  
    Accrued expenses   15,724       14,658  
    Other current liabilities   16,173       16,087  
    Total current liabilities   58,606       63,280  
    Operating lease liabilities   36,328       37,476  
    Other liabilities   7,680       6,632  
    Total liabilities   102,614       107,388  
    Stockholders’ equity   462,119       519,290  
    Total liabilities and stockholders’ equity $ 564,733     $ 626,678  
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (UNAUDITED)
    (in thousands, except per share amounts)
       
      Three Months Ended
    March 31,
        2025       2024  
    Revenue(1) $ 217,702     $ 187,430  
    Costs and operating expenses:      
    Cost of revenue (exclusive of depreciation and amortization)(2)   79,498       64,646  
    Sales and marketing(2)   31,057       24,455  
    Research and product development(2)   43,758       37,895  
    General and administrative(2)   23,351       21,132  
    Depreciation and amortization   6,255       5,212  
     Total costs and operating expenses   183,919       153,340  
    Income from operations   33,783       34,090  
    Other income, net   56        
    Interest income, net   2,953       2,992  
    Income before provision for income taxes   36,792       37,082  
    Provision (benefit from) for income taxes   5,409       (1,581 )
    Net income $ 31,383     $ 38,663  
    Net income per common share:      
    Basic $ 0.86     $ 1.07  
    Diluted $ 0.86     $ 1.05  
    Weighted average common shares outstanding      
    Basic   36,302       36,087  
    Diluted   36,648       36,674  
                   

    (1) The following table presents our revenue categories:

       
      Three Months Ended
    March 31,
        2025       2024  
    Core solutions $ 49,513     $ 42,920  
    Value Added Services   164,706       142,331  
    Other   3,483       2,179  
    Total revenue $ 217,702     $ 187,430  
                   

    (2) Includes stock-based compensation expense as follows:

      Three Months Ended
    March 31,
        2025       2024  
    Costs and operating expenses:      
    Cost of revenue (exclusive of depreciation and amortization) $ 1,287     $ 960  
    Sales and marketing   2,848       1,510  
    Research and product development   6,931       5,682  
    General and administrative   5,305       5,322  
    Total stock-based compensation expense $ 16,371     $ 13,474  
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (UNAUDITED)
    (in thousands)
     
      Three Months Ended
    March 31,
        2025       2024  
    Cash from operating activities      
    Net income $ 31,383     $ 38,663  
    Adjustments to reconcile net income to net cash provided by operating activities:      
    Depreciation and amortization   6,255       5,211  
    Amortization of operating lease right-of-use assets   501       523  
    Amortization of costs capitalized to obtain revenue contracts, net   2,720       2,500  
    Deferred income taxes   (5,541 )      
    Stock-based compensation, including as amortized   16,371       13,474  
    Other   (917 )     (1,824 )
    Changes in operating assets and liabilities:      
    Accounts receivable   (3,116 )     (5,470 )
    Prepaid expenses and other assets   (5,460 )     6,349  
    Accounts payable   2,546       733  
    Operating lease liabilities   (1,051 )     (475 )
    Accrued expenses and other liabilities   (5,226 )     (16,730 )
      Net cash provided by operating activities   38,465       42,954  
    Cash from investing activities      
    Purchases of available-for-sale investments   (62,302 )     (57,162 )
    Proceeds from sales of available-for-sale investments   102,718        
    Proceeds from maturities of available-for-sale investments   42,150       36,670  
    Purchases of property and equipment   (230 )     (1,420 )
    Capitalization of software development costs   (636 )     (1,125 )
    Cash paid in business acquisition, net of cash acquired   (906 )      
    Net cash used in investing activities   80,794       (23,037 )
    Cash from financing activities      
    Proceeds from stock option exercises   11       3,874  
    Tax withholding for net share settlement   (9,078 )     (14,086 )
    Purchase of common stock   (95,763 )      
    Net cash used in financing activities   (104,830 )     (10,212 )
    Net decrease in cash, cash equivalents and restricted cash   14,429       9,705  
    Cash, cash equivalents and restricted cash      
    Beginning of period   42,754       49,759  
    End of period $ 57,183     $ 59,464  
    RECONCILIATION FROM GAAP TO NON-GAAP RESULTS
    (UNAUDITED)
    (in thousands, except per share data)
       
      Three Months Ended
    March 31,
       2025     2024 
    Costs and operating expenses:  
    GAAP cost of revenue (exclusive of depreciation and amortization) $ 79,498     $ 64,646  
    Stock-based compensation expense   (1,287 )     (960 )
    Non-GAAP cost of revenue (exclusive of depreciation and amortization) $ 78,211     $ 63,686  
    GAAP cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue   37  %     34  %
    Non-GAAP cost of revenue (exclusive of depreciation and amortization) as a percentage of revenue   36  %     34  %
           
    GAAP sales and marketing $ 31,057     $ 24,455  
    Stock-based compensation expense   (2,848 )     (1,510 )
    Non-GAAP sales and marketing $ 28,209     $ 22,945  
    GAAP sales and marketing as a percentage of revenue   14  %     13  %
    Non-GAAP sales and marketing as a percentage of revenue   13  %     12  %
           
    GAAP research and product development $ 43,758     $ 37,895  
    Stock-based compensation expense   (6,931 )     (5,682 )
    Non-GAAP research and product development $ 36,827     $ 32,213  
    GAAP research and product development as a percentage of revenue   20  %     20  %
    Non-GAAP research and product development as a percentage of revenue   17  %     17  %
           
    GAAP general and administrative $ 23,351     $ 21,132  
    Stock-based compensation expense   (5,305 )     (5,322 )
    Non-GAAP general and administrative $ 18,046     $ 15,810  
    GAAP general and administrative as a percentage of revenue   11  %     11  %
    Non-GAAP general and administrative as a percentage of revenue   8  %     8  %
           
    GAAP depreciation and amortization $ 6,255     $ 5,212  
    Amortization of stock-based compensation capitalized in software development costs   (241 )     (518 )
    Amortization of purchased intangibles   (2,558 )     (119 )
    Non-GAAP depreciation and amortization $ 3,456     $ 4,575  
    GAAP depreciation and amortization as a percentage of revenue   3  %     3  %
    Non-GAAP depreciation and amortization as a percentage of revenue   2  %     2  %
      Three Months Ended
    March 31,
       2025     2024 
    Income from operations:      
    GAAP income from operations $ 33,783     $ 34,090  
    Stock-based compensation expense   16,371       13,474  
    Amortization of stock-based compensation capitalized in software development costs   241       518  
    Amortization of purchased intangibles   2,558       119  
    Non-GAAP income from operations $ 52,953     $ 48,201  
           
    Operating margin:      
    GAAP operating margin   15.5  %     18.2  %
    Stock-based compensation expense as a percentage of revenue   7.5       7.1  
    Amortization of stock-based compensation capitalized in software development costs as a percentage of revenue   0.1       0.3  
    Amortization of purchased intangibles as a percentage of revenue   1.2       0.1  
    Non-GAAP operating margin   24.3  %     25.7  %
           
    Net income (loss):      
    GAAP net income $ 31,383     $ 38,663  
    Stock-based compensation expense   16,371       13,474  
    Amortization of stock-based compensation capitalized in software development costs   241       518  
    Amortization of purchased intangibles   2,558       119  
    Income tax effect of adjustments   (6,343 )     (14,379 )
    Non-GAAP net income $ 44,210     $ 38,395  
           
    Net income per share, basic:      
    GAAP net income per share, basic $ 0.86     $ 1.07  
    Non-GAAP adjustments to net income   0.36       (0.01 )
    Non-GAAP net income per share, basic $ 1.22     $ 1.06  
           
    Net income per share, diluted:      
    GAAP net income per share, diluted $ 0.86     $ 1.05  
    Non-GAAP adjustments to net income   0.35        
    Non-GAAP net income per share, diluted $ 1.21     $ 1.05  
           
    Weighted-average shares used in GAAP and non-GAAP per share calculation      
    Basic   36,302       36,087  
    Diluted   36,648       36,674  
                   

    Statement Regarding the Use of Non-GAAP Financial Measures

    We use the following non-GAAP financial measures in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

    • Non-GAAP presentation of income from operations, costs and operating expenses, operating margin, net income, and net income per share. These measures exclude certain non-cash or non-recurring items, including stock-based compensation expense, amortization of stock-based compensation capitalized in software development costs, amortization of purchased intangibles, and the related income tax effect of these adjustments, as applicable and described below. Non-GAAP operating margin is calculated as non-GAAP operating income from operations as a percentage of revenue.

    We use each of these non-GAAP financial measures internally to assess and compare operating results across reporting periods, for internal budgeting and forecasting purposes, and to evaluate our financial performance. We believe these non-GAAP financial measures also provide useful supplemental information to investors and facilitate the analysis of our operating results and comparison of operating results across reporting periods.

    In particular, we believe these non-GAAP financial measures are useful to investors and others in assessing our operating performance due to the following factors:

    • Stock-based compensation expense and amortization of stock-based compensation capitalized in software development costs. We utilize stock-based compensation to attract and retain employees. It is principally aimed at aligning their interests with those of our stockholders while ensuring long-term retention, rather than to address operational performance for any particular period. As a result, stock-based compensation expenses vary for reasons that are generally unrelated to financial and operational performance in any particular period.
    • Amortization of purchased intangibles. We view amortization of purchased intangible assets as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are evaluated for impairment regularly, amortization of the cost of purchased intangibles is an expense that is not typically affected by operations during any particular period.
    • Income tax effects of adjustments. We utilize a fixed long-term projected tax rate in our computation of non-GAAP income tax effects to provide better consistency across interim reporting periods. In projecting this long-term non-GAAP tax rate, we utilize a financial projection that excludes the direct impact of other non-GAAP adjustments. The projected rate, which we have determined to be 21% and 25% for 2025 and 2024, respectively, considers other factors such as our current operating structure, existing tax positions in various jurisdictions, and key legislation in major jurisdictions where we operate. We periodically re-evaluate this tax rate, as necessary, for significant events, based on relevant tax law changes, and material changes in the forecasted geographic earnings mix.

    Our non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in our industry, as other companies may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because non-GAAP financial measures are not prepared in accordance with GAAP and can exclude expenses that may have a material impact on our reported financial results. As such, non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. A reconciliation of the historical non-GAAP financial measures to their most directly comparable GAAP measures has been provided in the tables above. We encourage investors to review the reconciliation of these historical non-GAAP financial measures to their most directly comparable GAAP financial measures.

    The MIL Network

  • MIL-OSI: SPS Commerce Reports First Quarter 2025 Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Company delivers 97th consecutive quarter of topline growth
    First quarter 2025 revenue grew 21% and recurring revenue grew 23% from the first quarter of 2024

    MINNEAPOLIS, April 24, 2025 (GLOBE NEWSWIRE) — SPS Commerce, Inc. (NASDAQ: SPSC), a leader in retail supply chain cloud services, today announced financial results for the first quarter ended March 31, 2025.

    Financial Highlights

    First Quarter 2025 Financial Highlights

    • Revenue was $181.5 million in the first quarter of 2025, compared to $149.6 million in the first quarter of 2024, reflecting 21% growth.
    • Recurring revenue grew 23% from the first quarter of 2024.
    • Net income was $22.2 million or $0.58 per diluted share, compared to net income of $18.0 million or $0.48 per diluted share in the first quarter of 2024.
    • Non-GAAP income per diluted share was $1.00, compared to non-GAAP income per diluted share of $0.86 in the first quarter of 2024.
    • Adjusted EBITDA for the first quarter of 2025 increased 22% to $54.4 million compared to the first quarter of 2024.
    • Share repurchases in the first quarter of 2025 totaled $40.0 million.

    “SPS Commerce operates a network of over 50,000 suppliers, logistics companies and buying organizations across retail, distribution, grocery, and manufacturing, and we are uniquely positioned to support all trading relationships,” said Chad Collins, CEO of SPS Commerce.  “With an $11 billion total addressable market, we have a tremendous opportunity to transform how trading partners work together as they continue to advance their supply chain technologies.” 

    “We delivered strong first-quarter performance, and the 97th consecutive quarter of revenue growth,” said Kim Nelson, CFO of SPS Commerce.  “Despite ongoing uncertainty in the macro environment, we remain confident in our full-year 2025 growth outlook and margin expansion profile, which underscores the resilience of our business model and the mission critical nature of our solutions, designed to improve collaboration across the global retail supply chain.”

    Guidance

    Second Quarter 2025 Guidance

    • Revenue is expected to be in the range of $184.5 million to $186.2 million, representing 20% to 21% year-over-year growth.  
    • Net income per diluted share is expected to be in the range of $0.41 to $0.44, with fully diluted weighted average shares outstanding of 38.8 million shares.
    • Non-GAAP income per diluted share is expected to be in the range of $0.87 to $0.90.
    • Adjusted EBITDA is expected to be in the range of $53.0 million to $54.5 million.
    • Non-cash, share-based compensation expense is expected to be $15.5 million, depreciation expense is expected to be $5.5 million, and amortization expense is expected to be $9.8 million.

    Fiscal Year 2025 Guidance

    • Revenue is expected to be in the range of $758.5 million to $763.0 million, representing 19% to 20% growth over 2024.
    • Net income per diluted share is expected to be in the range of $2.06 to $2.13, with fully diluted weighted average shares outstanding of 38.7 million shares.
    • Non-GAAP income per diluted share is expected to be in the range of $3.86 to $3.93.
    • Adjusted EBITDA is expected to be in the range of $229.4 million to $232.9 million, representing 23% to 25% growth over 2024.
    • Non-cash, share-based compensation expense is expected to be $61.4 million, depreciation expense is expected to be $23.0 million, and amortization expense is expected to be $38.0 million.

    The forward-looking measures and the underlying assumptions involve significant known and unknown risks and uncertainties, and actual results may vary materially. The Company does not present a reconciliation of the forward-looking non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, and non-GAAP income per share, to the most directly comparable GAAP financial measures because it is impractical to forecast certain items without unreasonable efforts due to the uncertainty and inherent difficulty of predicting, within a reasonable range, the occurrence and financial impact of and the periods in which such items may be recognized.

    Quarterly Conference Call

    To access the call, please dial 1-833-816-1382, or outside the U.S. 1-412-317-0475 at least 15 minutes prior to the 3:30 p.m. CT start time. Please ask to join the SPS Commerce Q1 2025 conference call.  A live webcast of the call will also be available at http://investors.spscommerce.com under the Events and Presentations menu.  The replay will also be available on our website at http://investors.spscommerce.com.

    About SPS Commerce

    SPS Commerce is the world’s leading retail network, connecting trading partners around the globe to optimize supply chain operations for all retail partners. We support data-driven partnerships with innovative cloud technology, customer-obsessed service, and accessible experts so our customers can focus on what they do best. Over 50,000 recurring revenue customers in retail, grocery, distribution, supply, manufacturing, and logistics are using SPS as their retail network. SPS has achieved 97 consecutive quarters of revenue growth and is headquartered in Minneapolis. For additional information, contact SPS at 866-245-8100 or visit www.spscommerce.com.

    SPS COMMERCE, SPS, SPS logo and INFINITE RETAIL POWER are marks of SPS Commerce, Inc. and registered in the U.S. Patent and Trademark Office, along with other SPS marks. Such marks may also be registered or otherwise protected in other countries. 

    SPS-F

    Use of Non-GAAP Financial Measures

    To supplement our condensed consolidated financial statements, we provide investors with Adjusted EBITDA, Adjusted EBITDA Margin, and non-GAAP income per share, all of which are non-GAAP financial measures. We believe that these non-GAAP financial measures provide useful information to our management, Board of Directors, and investors regarding certain financial and business trends relating to our financial condition and results of operations.

    Our management uses these non-GAAP financial measures to compare our performance to that of prior periods for trend analyses and planning purposes. Adjusted EBITDA is also used for purposes of determining executive and senior management incentive compensation. We believe these non-GAAP financial measures are useful to an investor as they are widely used in evaluating operating performance. Adjusted EBITDA and Adjusted EBITDA Margin are used to measure operating performance without regard to items such as depreciation and amortization, which can vary depending upon accounting methods and the book value of assets, and to present a meaningful measure of corporate performance exclusive of capital structure and the method by which assets were acquired.

    These non-GAAP financial measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. These non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in our condensed consolidated financial statements and are subject to inherent limitations. Investors should review the reconciliations of non-GAAP financial measures to the comparable GAAP financial measures that are included in this press release.

    Adjusted EBITDA Measures:

    Adjusted EBITDA consists of net income adjusted for income tax expense, depreciation and amortization expense, stock-based compensation expense, realized gain or loss from investments held and foreign currency impact on cash and investments, investment income, and other adjustments as necessary for a fair presentation. Other adjustments for the three months ended March 31, 2025 included the expense impacts from disposals of certain capitalized internally developed software and one-time acquisition-related insurance costs. Net income is the comparable GAAP measure of financial performance.

    Adjusted EBITDA Margin consists of Adjusted EBITDA divided by revenue. Margin, the comparable GAAP measure of financial performance, consists of net income divided by revenue.

    Non-GAAP Income Per Share Measure:

    Non-GAAP income per share consists of net income adjusted for stock-based compensation expense, amortization expense related to intangible assets, realized gain or loss from investments held and foreign currency impact on cash and investments, other adjustments as necessary for a fair presentation, including for the three months ended March 31, 2025 the expense impacts from disposals of certain capitalized internally developed software and one-time acquisition-related insurance costs, and the corresponding tax impacts of the adjustments to net income, divided by the weighted average number of shares of common and diluted stock outstanding during each period. Net income per share, the comparable GAAP measure of financial performance, consists of net income divided by the weighted average number of shares of common and diluted stock outstanding during each period. To quantify the tax effects, we recalculated income tax expense excluding the direct book and tax effects of the specific items constituting the non-GAAP adjustments. The difference between this recalculated income tax expense and GAAP income tax expense is presented as the income tax effect of the non-GAAP adjustments.

    Forward-Looking Statements

    This press release may contain forward-looking statements, including information about management’s view of SPS Commerce’s future expectations, plans and prospects, including our views regarding future execution within our business, the opportunity we see in the retail supply chain world and our performance for the second quarter and full year of 2025, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. These statements involve known and unknown risks, uncertainties and other factors which may cause the results of SPS Commerce to be materially different than those expressed or implied in such statements. Certain of these risk factors and others are included in documents SPS Commerce files with the Securities and Exchange Commission, including but not limited to, SPS Commerce’s Annual Report on Form 10-K for the year ended December 31, 2024, as well as subsequent reports filed with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on SPS Commerce’s future results. The forward-looking statements included in this press release are made only as of the date hereof. SPS Commerce cannot guarantee future results, levels of activity, performance or achievements. Accordingly, you should not place undue reliance on these forward-looking statements. Finally, SPS Commerce expressly disclaims any intent or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

    SPS COMMERCE, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In thousands, except shares)
     
      March 31,
    2025
      December 31,
    2024
    ASSETS (unaudited)    
    Current assets      
    Cash and cash equivalents $ 94,921     $ 241,017  
    Accounts receivable   68,183       56,214  
    Allowance for credit losses   (4,793 )     (4,179 )
    Accounts receivable, net   63,390       52,035  
    Deferred costs   67,107       65,342  
    Other assets   26,417       23,513  
    Total current assets   251,835       381,907  
    Property and equipment, net   38,687       37,547  
    Operating lease right-of-use assets   8,424       8,192  
    Goodwill   533,940       399,180  
    Intangible assets, net   252,280       181,294  
    Other assets      
    Deferred costs, non-current   21,416       20,572  
    Deferred income tax assets   562       505  
    Other assets, non-current   1,906       2,033  
    Total assets $ 1,109,050     $ 1,031,230  
    LIABILITIES AND STOCKHOLDERS’ EQUITY      
    Current liabilities      
    Accounts payable $ 11,255     $ 8,577  
    Accrued compensation   40,747       47,160  
    Accrued expenses   16,640       12,108  
    Deferred revenue   78,620       74,256  
    Operating lease liabilities   6,162       4,583  
    Total current liabilities   153,424       146,684  
    Other liabilities      
    Deferred revenue, non-current   5,748       6,189  
    Operating lease liabilities, non-current   6,101       7,885  
    Deferred income tax liabilities   20,298       15,541  
    Other liabilities, non-current   2,558       241  
    Total liabilities   188,129       176,540  
    Commitments and contingencies      
    Stockholders’ equity      
    Common stock   40       40  
    Treasury stock   (102,096 )     (99,748 )
    Additional paid-in capital   672,138       627,982  
    Retained earnings   358,295       336,099  
    Accumulated other comprehensive loss   (7,456 )     (9,683 )
    Total stockholders’ equity   920,921       854,690  
         Total liabilities and stockholders’ equity $ 1,109,050     $ 1,031,230  
                   
    SPS COMMERCE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited; in thousands, except per share amounts)
     
      Three Months Ended
    March 31,
       2025    2024
    Revenues $ 181,549   $ 149,576
    Cost of revenues   56,914     51,487
    Gross profit   124,635     98,089
    Operating expenses      
    Sales and marketing   41,634     36,432
    Research and development   17,439     16,009
    General and administrative   31,018     25,907
    Amortization of intangible assets   8,588     4,338
    Total operating expenses   98,679     82,686
    Income from operations   25,956     15,403
    Other income, net   2,207     3,132
    Income before income taxes   28,163     18,535
    Income tax expense   5,967     532
    Net income $ 22,196   $ 18,003
           
    Net income per share      
    Basic $ 0.58   $ 0.49
    Diluted $ 0.58   $ 0.48
           
    Weighted average common shares used to compute net income per share      
    Basic   37,990     37,049
    Diluted   38,163     37,686
               
    SPS COMMERCE, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (Unaudited; in thousands)
     
      Three Months Ended
    March 31,
       2025     2024 
    Cash flows from operating activities      
    Net income $ 22,196     $ 18,003  
    Reconciliation of net income to net cash provided by operating activities      
    Deferred income taxes   (4,418 )     (7,070 )
    Depreciation and amortization of property and equipment   4,957       4,694  
    Amortization of intangible assets   8,588       4,338  
    Provision for credit losses   1,822       1,408  
    Stock-based compensation   13,867       20,018  
    Other, net   168       (431 )
    Changes in assets and liabilities, net of effects of acquisition      
    Accounts receivable   (7,443 )     (6,759 )
    Deferred costs   (1,247 )     (1,651 )
    Other assets and liabilities   1,174       3,030  
    Accounts payable   1,677       5,098  
    Accrued compensation   (7,948 )     (9,518 )
    Accrued expenses   3,868       (674 )
    Deferred revenue   3,160       4,129  
    Operating leases   (438 )     (551 )
    Net cash provided by operating activities   39,983       34,064  
    Cash flows from investing activities      
    Purchases of property and equipment   (6,150 )     (3,533 )
    Purchases of investments         (44,412 )
    Maturities of investments         45,000  
    Acquisition of business, net   (141,636 )      
    Net cash used in investing activities   (147,786 )     (2,945 )
    Cash flows from financing activities      
    Repurchases of common stock   (40,000 )     (16,540 )
    Net proceeds from exercise of options to purchase common stock   635       1,260  
    Net proceeds from employee stock purchase plan activity   411       391  
    Net cash used in financing activities   (38,954 )     (14,889 )
    Effect of foreign currency exchange rate changes   661       (674 )
    Net increase (decrease) in cash and cash equivalents   (146,096 )     15,556  
    Cash and cash equivalents at beginning of period   241,017       219,081  
    Cash and cash equivalents at end of period $ 94,921     $ 234,637  
                   
    SPS COMMERCE, INC.
    NON-GAAP RECONCILIATIONS
    (Unaudited; in thousands, except Margin, Adjusted EBITDA Margin, and per share amounts)
     
    Adjusted EBITDA
      Three Months Ended
    March 31,
      2025     2024
    Net income $ 22,196     $ 18,003  
    Income tax expense   5,967       532  
    Depreciation and amortization of property and equipment   4,957       4,694  
    Amortization of intangible assets   8,588       4,338  
    Stock-based compensation expense   13,867       20,018  
    Realized gain from investments held and foreign currency impact on cash and investments   (366 )     (304 )
    Investment income   (1,849 )     (2,879 )
    Other   1,013        
    Adjusted EBITDA $ 54,373     $ 44,402  
                   
    Adjusted EBITDA Margin
      Three Months Ended
    March 31,
      2025   2024
    Revenue $ 181,549     $ 149,576  
           
    Net income   22,196       18,003  
    Margin   12 %     12 %
           
    Adjusted EBITDA   54,373       44,402  
    Adjusted EBITDA Margin   30 %     30 %
                   
    Non-GAAP Income per Share
      Three Months Ended
    March 31,
      2025   2024
    Net income $ 22,196     $ 18,003  
    Stock-based compensation expense   13,867       20,018  
    Amortization of intangible assets   8,588       4,338  
    Realized gain from investments held and foreign currency impact on cash and investments   (366 )     (304 )
    Other   1,013        
    Income tax effects of adjustments   (7,285 )     (9,554 )
    Non-GAAP income $ 38,013     $ 32,501  
           
    Shares used to compute net income and non-GAAP income per share      
    Basic   37,990       37,049  
    Diluted   38,163       37,686  
           
    Net income per share, basic $ 0.58     $ 0.49  
    Non-GAAP adjustments to net income per share, basic   0.42       0.39  
    Non-GAAP income per share, basic $ 1.00     $ 0.88  
           
    Net income per share, diluted $ 0.58     $ 0.48  
    Non-GAAP adjustments to net income per share, diluted   0.42       0.38  
    Non-GAAP income per share, diluted $ 1.00     $ 0.86  
                   

    The annual per share amounts may not cross-sum due to rounding.

    Contact:
    Investor Relations
    The Blueshirt Group
    Irmina Blaszczyk & Lisa Laukkanen
    SPSC@blueshirtgroup.com
    415-217-4962

    The MIL Network

  • MIL-OSI: ARKO to Report First Quarter 2025 Financial Results on May 8, 2025

    Source: GlobeNewswire (MIL-OSI)

    RICHMOND, Va., April 24, 2025 (GLOBE NEWSWIRE) — ARKO Corp. (Nasdaq: ARKO) (the “Company”), a Fortune 500 company and one of the largest convenience store operators in the United States, today announced that the Company will host a conference call on Thursday, May 8, 2025 at 5:00 p.m. Eastern Time to discuss its financial results for the first quarter ended March 31, 2025.

    ARKO Corp.’s management team will host the conference call, followed by a question-and-answer period. The Company will provide its financial results in a press release prior to the call.

    Date: Thursday, May 8, 2025
    Time: 5:00 p.m. Eastern Time
    Toll-free dial-in number: (888) 396-8049
    International dial-in number: (416) 764-8646
    Webcast: ARKO’s Q1 2025 Earnings Call

    A telephonic replay will be available approximately three hours after the call concludes through Saturday, June 7, 2025.

    Toll-free replay number: (877) 660-6853
    International replay number: (201) 612-7415
    Replay ID: 13752796

    A link to the live webcast and replay will also be available at https://www.arkocorp.com/news-events/ir-calendar. We encourage all participants to register at least 15 minutes prior to the 5:00 p.m. ET start time. If you have any difficulty registering or connecting with the conference call, please contact Elevate IR at (720) 330-2829.

    About ARKO Corp.

    ARKO Corp. (Nasdaq: ARKO) is a Fortune 500 company that owns 100% of GPM Investments, LLC and is one of the largest operators of convenience stores and wholesalers of fuel in the United States. Based in Richmond, VA, our highly recognizable Family of Community Brands offers delicious, prepared foods, beer, snacks, candy, hot and cold beverages, and multiple popular quick serve restaurant brands. We operate in four reportable segments: retail, which includes convenience stores selling merchandise and fuel products to retail customers; wholesale, which supplies fuel to independent dealers and consignment agents; fleet fueling, which includes the operation of proprietary and third-party cardlock locations and issuance of proprietary fuel cards that provide customers access to a nationwide network of fueling sites; and GPM Petroleum, which sells and supplies fuel to our retail and wholesale sites and charges a fixed fee, primarily to our fleet fueling sites. To learn more about GPM stores, visit: www.gpminvestments.com. To learn more about ARKO, visit: www.arkocorp.com.

    Company Contact
    Jordan Mann
    ARKO Corp.
    investors@gpminvestments.com

    Investor Contact
    Sean Mansouri, CFA
    Elevate IR
    (720) 330-2829
    ARKO@elevate-ir.com

    The MIL Network